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Capital IconMinnesota Legislature

SF 3808

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/28/2020 03:34pm

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

Current Version - 1st Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8
2.9 2.10
2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25
2.26
2.27 2.28 2.29 2.30 2.31 2.32 2.33 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12
4.13
4.14 4.15 4.16
4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11
9.12
9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18
11.19
11.20 11.21
11.22
11.23 11.24 11.25
11.26 11.27 11.28 11.29
11.30
12.1 12.2 12.3 12.4 12.5
12.6
12.7 12.8 12.9 12.10 12.11
12.12
12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27
13.28
14.1 14.2 14.3
14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8
15.9
15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 18.1 18.2
18.3
18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31
18.32
19.1 19.2 19.3 19.4 19.5
19.6
19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25
19.26
19.27 19.28
19.29 19.30 19.31 19.32 20.1 20.2 20.3
20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17
20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 21.1 21.2 21.3 21.4 21.5 21.6 21.7
21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29
21.30 21.31 21.32 21.33
22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21
22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8
24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32
25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9
25.10 25.11 25.12 25.13 25.14 25.15
25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15
26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24
26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 29.1 29.2 29.3 29.4
29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 30.1 30.2 30.3 30.4 30.5 30.6 30.7
30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16
30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28
30.29 30.30 30.31 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25
31.26 31.27
31.28 31.29
32.1 32.2 32.3
32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9
36.10
36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 37.1 37.2 37.3 37.4 37.5 37.6 37.7
37.8
37.9 37.10 37.11 37.12 37.13
37.14
37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 38.1 38.2 38.3
38.4
38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12
38.13
38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21
38.22
38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30
38.31
39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15
40.16
40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12
41.13
41.14 41.15 41.16 41.17 41.18 41.19 41.20
41.21
41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30
41.31
42.1 42.2 42.3 42.4 42.5 42.6 42.7
42.8
42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28
42.29
43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20
43.21
43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 44.1 44.2 44.3 44.4 44.5 44.6
44.7
44.8 44.9 44.10 44.11 44.12
44.13 44.14
44.15 44.16
44.17
44.18 44.19 44.20
44.21 44.22 44.23 44.24 44.25 44.26
44.27 44.28 44.29 45.1 45.2 45.3 45.4 45.5
45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21
45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30
46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8
47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17
47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 48.1 48.2 48.3
48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 49.1 49.2 49.3 49.4 49.5
49.6 49.7 49.8 49.9 49.10 49.11
49.12 49.13
49.14 49.15
49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29
50.30
51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17
51.18
51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11
52.12
52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33 55.34 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27
56.28 56.29
56.30 56.31 56.32 56.33 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28
57.29
57.30 57.31 57.32 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10
58.11
58.12 58.13 58.14 58.15 58.16 58.17 58.18
58.19
58.20 58.21 58.22 58.23 58.24
58.25 58.26
58.27 58.28
58.29
59.1 59.2
59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29
60.30 60.31 60.32 60.33
61.1 61.2 61.3
61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 61.35 61.36 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 62.34 62.35 62.36 62.37 62.38 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 63.34 63.35 63.36 63.37 63.38 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 64.34 64.35 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 65.35 65.36 65.37 65.38 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 66.35 66.36 66.37 66.38 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 67.34 67.35 67.36 67.37 67.38 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 68.35 68.36 68.37 68.38 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 69.35 69.36 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9
70.10
70.11 70.12
70.13
70.14 70.15 70.16
70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15
71.16
71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15
73.16
73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29
73.30
74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30
74.31 74.32
75.1 75.2
75.3
75.4 75.5 75.6 75.7
75.8 75.9 75.10 75.11
75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20
75.21 75.22 75.23 75.24 75.25
75.26 75.27 75.28 75.29
76.1 76.2 76.3 76.4 76.5
76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18
76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31
77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12
77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25
77.26 77.27 77.28 77.29 77.30
78.1 78.2 78.3 78.4 78.5
78.6 78.7 78.8 78.9
78.10 78.11 78.12 78.13
78.14 78.15 78.16 78.17
78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 80.34 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 85.1 85.2 85.3 85.4
85.5 85.6
85.7 85.8
85.9 85.10 85.11
85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 86.33 87.1 87.2 87.3 87.4
87.5 87.6 87.7
87.8 87.9 87.10
87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 87.33 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33 89.34 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 90.33 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12
91.13
91.14 91.15 91.16 91.17
91.18 91.19 91.20 91.21
91.22 91.23 91.24 91.25 91.26
91.27 91.28 91.29 91.30 91.31 92.1 92.2 92.3 92.4
92.5 92.6 92.7 92.8 92.9
92.10 92.11 92.12 92.13
92.14 92.15 92.16 92.17 92.18
92.19 92.20 92.21 92.22 92.23
92.24 92.25 92.26 92.27 92.28 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8
93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21
93.22 93.23 93.24 93.25
93.26 93.27 93.28 93.29
94.1 94.2 94.3 94.4
94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 96.33 96.34 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32 98.33 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30
99.31 99.32
100.1 100.2 100.3
100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 101.1 101.2
101.3
101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 102.1 102.2 102.3 102.4 102.5
102.6
102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22
103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8
105.9
105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27
105.28
105.29 105.30 105.31 105.32 106.1 106.2 106.3 106.4 106.5 106.6 106.7
106.8
106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 106.34 106.35 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26
107.27
107.28 107.29 107.30
107.31 107.32 107.33 107.34 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14
108.15

A bill for an act
relating to retirement; authorizing new categories of investments for the State
Board of Investment; excluding new trades employees from Public Employees
Retirement Association general plan coverage and grandfathering currently covered
members; permitting contributions to multiemployer plans for employees in the
building and constructions trades by the city of St. Paul and the St. Paul School
District; revising augmentation for certain privatized medical facilities and their
employees; amending requirements for reporting by pension funds to the state
auditor; making changes of an administrative nature for the Minnesota State
Retirement System, the Public Employees Retirement Association, the statewide
volunteer firefighter plan, and the Teachers Retirement Association; authorizing
the purchase of service credit for a certain Maplewood firefighter; increasing the
maximum for lump sum pensions for volunteer firefighter relief associations;
revising the allocation of fire state aid; assigning fire state aid to the city of Eagan;
providing new procedures for volunteer firefighter relief association dissolution
and termination of its retirement plan; providing for the dissolution of the Brooklyn
Park Firefighter Relief Association and the termination of the retirement plan;
providing for the division of the Ramsey Volunteer Firefighters' Relief Association
and the transfer of accounts to a relief association affiliated with the city of
Nowthen; authorizing relief associations to convert from a defined benefit plan to
a defined contribution plan; implementing the recommendations of the state
auditor's volunteer firefighter working group; temporarily extending the grandfather
provision regarding actuarial assumptions used to compute an annuity in the
Minnesota State Retirement System unclassified plan; amending Minnesota Statutes
2018, sections 11A.24, subdivisions 1, 6; 352.01, subdivision 26; 352.04,
subdivisions 4, 8, by adding a subdivision; 352.113, subdivision 4; 352.95,
subdivision 3; 352B.011, subdivisions 6, 10; 352B.10, subdivision 2a; 352D.06,
subdivision 1; 353.29, subdivisions 1, 7; 353.30, subdivision 3c; 353.31, subdivision
8; 353.32, subdivision 4; 353.651, subdivision 1; 353.656, subdivisions 1, 3;
353.657, subdivision 1; 353F.02, by adding subdivisions; 353F.04; 353G.01, by
adding a subdivision; 353G.05, subdivisions 1, 5, by adding a subdivision; 353G.09,
subdivision 3, by adding a subdivision; 353G.11, subdivision 2; 353G.121; 354.05,
subdivisions 2, 41; 354.44, subdivisions 4, 6; 354.46, subdivision 2; 354.49,
subdivision 2; 354.543, subdivision 3; 356.219, subdivisions 1, 6, 7; 356.24,
subdivision 1, by adding a subdivision; 424A.003; 424A.02, subdivision 3;
424A.03, as amended; 424A.092, subdivisions 1, 2; 424B.01, by adding
subdivisions; 490.121, subdivision 7c; 490.123, subdivision 5; 490.124, subdivision
1; Minnesota Statutes 2019 Supplement, sections 352.04, subdivision 9; 352.113,
subdivision 2; 352.23; 353.01, subdivision 2b; 353.0141, subdivision 1; 353.34,
subdivision 3; 353.371, subdivisions 1, 2, by adding a subdivision; 356.219,
subdivisions 3, 8; 424A.014, subdivision 1; 424A.016, subdivisions 4, 6; 477B.04,
subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 356;
424B; 477B; repealing Minnesota Statutes 2018, sections 353.30, subdivision 4;
354.55, subdivision 10; 356.24, subdivision 2; 356.44; 424B.20; 424B.21; Laws
1980, chapter 607, section 13; Laws 2018, chapter 211, article 14, section 29.

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

ARTICLE 1

STATE BOARD OF INVESTMENT PROVISIONS

Section 1.

Minnesota Statutes 2018, section 11A.24, subdivision 1, is amended to read:


Subdivision 1.

Securities generally.

(a) Pursuant to an investment policy adopted by
the state board, the state board is authorized to purchase, sell, lend, and exchange the
securities specified in this section, for funds or accounts specifically made subject to this
section. This authority includes puts and call options, future contracts, and swap contracts
marked to market, if these options and contracts are traded on a contract market regulated
by a governmental agency or by a financial institution regulated by a governmental agency.
These securities may be owned directly or through shares in exchange-traded or mutual
funds, or as units in commingled trusts, subject to any limitations as specified in this section.

(b) Any agreement to lend securities must be concurrently collateralized with cash or
securities with a market value of not less than 100 percent of the market value of the loaned
securities at the time of the agreement. Any agreement for put and call options and futures
contracts may only be entered into with a fully offsetting amount of cash or securities. Only
securities authorized by this section, excluding those under subdivision 6, paragraph (a),
clauses (1) to deleted text begin(3)deleted text endnew text begin (5)new text end, may be accepted as collateral or offsetting securities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2018, section 11A.24, subdivision 6, is amended to read:


Subd. 6.

Other investments.

(a) In addition to the investments authorized in subdivisions
1 to 5, and subject to the provisions in paragraph (b), the state board is authorized to invest
funds in:

(1) equity and debt investment businesses through participation in limited partnerships,
trusts, private placements, limited liability corporations, limited liability companies, limited
liability partnerships, and corporations;

(2) real estate ownership interests or loans secured by mortgages or deeds of trust or
shares of real estate investment trusts through investment in limited partnerships,
bank-sponsored collective funds, trusts, mortgage participation agreements, and insurance
company commingled accountsdeleted text begin, including separate accountsdeleted text end;

(3) resource investments through limited partnerships, trusts, private placements, limited
liability corporations, limited liability companies, limited liability partnerships, and
corporations; deleted text beginand
deleted text end

new text begin (4) investment vehicles that are co-investments or separate accounts;
new text end

new text begin (5) liquid alternatives;
new text end

new text begin (6) bank loans; and
new text end

deleted text begin (4)deleted text end new text begin(7) new text endinternational securities.

(b) The investments authorized in paragraph (a) must conform to the following deleted text beginprovisionsdeleted text endnew text begin
clauses
new text end:

(1) the aggregate value of all investments made under paragraph (a), clauses (1) to deleted text begin(3)deleted text endnew text begin
(4)
new text end, may not exceed 35 percent of the market value of the fund for which the state board is
investing;

(2) there must be at least four unrelated owners of the investment other than the state
board for investments made under paragraph (a), clause (1), (2), or (3);

(3) state board participation in an investment vehicle is limited to 20 percent thereof for
investments made under paragraph (a), clause (1), (2), or (3); and

(4) state board participation in deleted text begina limited partnershipdeleted text end new text beginan investment vehicle new text enddoes not
include a general partnership interest or other interest involving general liability. The state
board may not deleted text beginengagedeleted text end new text beginparticipate new text endin any deleted text beginactivity as a limited partnerdeleted text end new text begininvestment vehicle in
a manner
new text endwhich creates general liability.

(c) All financial, business, or proprietary data collected, created, received, or maintained
by the state board in connection with investments authorized by paragraph (a), deleted text beginclausedeleted text end new text beginclauses
new text end (1)deleted text begin, (2), or (3)deleted text endnew text begin to (6)new text end, are nonpublic data under section 13.02, subdivision 9. As used in this
paragraph, "financial, business, or proprietary data" means data, as determined by the
responsible authority for the state board, that is of a financial, business, or proprietary nature,
the release of which could cause competitive harm to the state board, the legal entity in
which the state board has invested or has considered an investment, the managing entity of
an investment, or a portfolio company in which the legal entity holds an interest. As used
in this section, "business data" is data described in section 13.591, subdivision 1. Regardless
of whether they could be considered financial, business, or proprietary data, the following
data received, prepared, used, or retained by the state board in connection with investments
authorized by paragraph (a), deleted text beginclausedeleted text end new text beginclauses new text end(1)deleted text begin, (2), or (3)deleted text endnew text begin to (6)new text end, are public at all times:

(1) the name and industry group classification of the legal entity in which the state board
has invested or in which the state board has considered an investment;

(2) the state board commitment amount, if any;

(3) the funded amount of the state board's commitment to date, if any;

(4) the market value of the investment by the state board;

(5) the state board's internal rate of return for the investment, including expenditures
and receipts used in the calculation of the investment's internal rate of return; and

(6) the age of the investment in years.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

ST. PAUL CITY AND SCHOOL DISTRICT
CONTRIBUTIONS TO MULTIEMPLOYER PLANS

Section 1.

Minnesota Statutes 2019 Supplement, section 353.01, subdivision 2b, is amended
to read:


Subd. 2b.

Excluded employees.

(a) The following public employees are not eligible to
participate as members of the association with retirement coverage by the general employees
retirement plan, the local government correctional employees retirement plan under chapter
353E, or the public employees police and fire retirement plan:

(1) persons whose annual salary from one governmental subdivision never exceeds an
amount, stipulated in writing in advance, of $5,100 if the person is not a school district
employee or $3,800 if the person is a school year employee. If annual compensation from
one governmental subdivision to an employee exceeds the stipulated amount in a calendar
year or a school year, whichever applies, after being stipulated in advance not to exceed the
applicable amount, the stipulation is no longer valid and contributions must be made on
behalf of the employee under section 353.27, subdivision 12, from the first month in which
the employee received salary exceeding $425 in a month;

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

(3) election judges and persons employed solely to administer elections;

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

(5) except as otherwise specified in subdivision 12a, employees who are employed solely
in a temporary position as defined under subdivision 12a, and employees who resign from
a nontemporary position and accept a temporary position within 30 days of that resignation
in the same governmental subdivision;

(6) employees who are employed by reason of work emergency caused by fire, flood,
storm, or similar disaster, but if the person becomes a probationary or provisional employee
within the same pay period, other than on a temporary basis, the person is a "public
employee" retroactively to the beginning of the pay period;

(7) employees who by virtue of their employment in one governmental subdivision are
required by law to be a member of and to contribute to any of the plans or funds administered
by the Minnesota State Retirement System, the Teachers Retirement Association, or the St.
Paul Teachers Retirement Fund Association, but this exclusion must not be construed to
prevent a person from being a member of and contributing to the Public Employees
Retirement Association and also belonging to and contributing to another public pension
plan or fund for other service occurring during the same period of time, and a person who
meets the definition of "public employee" in subdivision 2 by virtue of other service occurring
during the same period of time becomes a member of the association unless contributions
are made to another public retirement plan on the salary based on the other service or to the
Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;

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

(9) persons who are:

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

(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist
interns and are serving in a degree or residency program in a public hospital or in a public
clinic; or

(iii) students who are serving for a period not to exceed five years in an internship or a
residency program that is sponsored by a governmental subdivision, including an accredited
educational institution;

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

(11) for the first three years of employment, foreign citizens who are employed by a
governmental subdivision, except that the following foreign citizens are included employees
under subdivision 2a:

(i) employees of Hennepin County or Hennepin Healthcare System, Inc.;

(ii) employees legally authorized to work in the United States for three years or more;
and

(iii) employees otherwise required to participate under federal law;

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

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

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

(15) new text beginemployees in the building and construction trades, as follows:
new text end

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

deleted text begin (16)deleted text end new text begin(ii) new text endelectrical workers, plumbers, carpenters, and associated trades personnel deleted text beginwho
are
deleted text end employed by Independent School District No. 625, St. Paul, or the city of St. Paul, deleted text beginwho
have retirement
deleted text end new text beginwith new text endcoverage under a collective bargaining agreement by the electrical
workers local 110 pension plan, the deleted text beginUnited Associationdeleted text end plumbers local 34 pension plan, or
the deleted text beginpension plan applicable todeleted text end carpenters local 322 new text beginpension plan new text endwho were either first
employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded
under Laws 2000, chapter 461, article 7, section 5;

deleted text begin (17)deleted text end new text begin(iii) new text endbricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters,
allied tradesworkers, and plasterers deleted text beginwho aredeleted text end employed by the city of St. Paul or Independent
School District No. 625, St. Paul, with coverage under a collective bargaining agreement
by the bricklayers and allied craftworkers local 1 pension plan, the cement masons local
633 pension plan, the glaziers and glassworkers local deleted text beginl-1324deleted text end new text begin1324 new text endpension plan, the painters
and allied trades local 61 pension plan, or the deleted text begintwin citiesdeleted text end plasterers local 265 pension plan
who were either first employed after May 1, 2001, or if first employed before May 2, 2001,
elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section
6;

deleted text begin (18)deleted text end new text begin(iv) new text endplumbers deleted text beginwho aredeleted text end employed by the Metropolitan Airports Commission, with
coverage under a collective bargaining agreement by the plumbers local 34 pension plan,
who new text beginwere new text endeither deleted text beginweredeleted text end first employed after May 1, 2001, or if first employed before May 2,
2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10,
section 6;

new text begin (v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation
Board, with coverage under a collective bargaining agreement by the electrical workers
local 292 pension plan or the pipefitters local 539 pension plan, who were first employed
before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11,
section 5;
new text end

new text begin (vi) laborers and associated trades personnel employed by the city of St. Paul or
Independent School District No. 625, St. Paul, who are designated as temporary employees
with coverage under a collective bargaining agreement by a multiemployer plan as defined
in section 356.27, subdivision 1, who were either first employed on or after June 1, 2018,
or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter
211, article 16, section 13; and
new text end

new text begin (vii) employees who are trades employees as defined in section 356.27, subdivision 1,
first hired on or after July 1, 2020, by the city of St. Paul or Independent School District
No. 625, St. Paul, except for any trades employee for whom contributions are made under
section 356.24, subdivision 1, clause (8), (9), or (10), by either employer to a multiemployer
plan as defined in section 356.27, subdivision 1;
new text end

deleted text begin (19)deleted text end new text begin(16) new text endemployees who are hired after June 30, 2002, solely to fill seasonal positions
under subdivision 12b which are limited in duration by the employer to 185 consecutive
calendar days or less in each year of employment with the governmental subdivision;

deleted text begin (20)deleted text end new text begin(17) new text endpersons who are provided supported employment or work-study positions by
a governmental subdivision and who participate in an employment or industries program
maintained for the benefit of these persons where the governmental subdivision limits the
position's duration to up to five years, including persons participating in a federal or state
subsidized on-the-job training, work experience, senior citizen, youth, or unemployment
relief program where the training or work experience is not provided as a part of, or for,
future permanent public employment;

deleted text begin (21)deleted text end new text begin(18) new text endindependent contractors and the employees of independent contractors;

deleted text begin (22)deleted text end new text begin(19) new text endreemployed annuitants of the association during the course of that
reemployment;

deleted text begin (23)deleted text end new text begin(20) new text endpersons appointed to serve on a board or commission of a governmental
subdivision or an instrumentality thereof;new text begin and
new text end

deleted text begin (24)deleted text end new text begin(21) new text endpersons employed as full-time fixed-route bus drivers by the St. Cloud
Metropolitan Transit Commission who are members of the International Brotherhood of
Teamsters Local 638 and who are, by virtue of that employment, members of the International
Brotherhood of Teamsters Central States pension plandeleted text begin;deleted text endnew text begin.
new text end

deleted text begin (25) electricians or pipefitters employed by the Minneapolis Park and Recreation Board,
with coverage under a collective bargaining agreement by the IBEW local 292, or pipefitters
local 539 pension plan, who were first employed before May 2, 2015, and who elected to
be excluded under Laws 2015, chapter 68, article 11, section 5; and
deleted text end

deleted text begin (26) laborers and associated trades personnel employed by the city of St. Paul or
Independent School District No. 625, St. Paul, who are designated as temporary employees
under a collective bargaining agreement and have retirement coverage by the Minnesota
Laborers Pension Fund who were either first employed on or after June 1, 2018, or, if first
employed before June 1, 2018, who elected to be excluded under Laws 2018, chapter 211,
article 16, section 13.
deleted text end

(b) Any person performing the duties of a public officer in a position defined in
subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
employee of an independent contractor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [356.27] CITY OF ST. PAUL AND INDEPENDENT SCHOOL DISTRICT
NO. 625, ST. PAUL; CONTRIBUTIONS TO MULTIEMPLOYER PLANS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.
new text end

new text begin (b) "Building and construction trades" means categories of employees who perform
building construction, maintenance, or inspection services, including:
new text end

new text begin (1) bricklayers;
new text end

new text begin (2) carpenters;
new text end

new text begin (3) cement masons;
new text end

new text begin (4) electricians;
new text end

new text begin (5) elevator constructors;
new text end

new text begin (6) glaziers;
new text end

new text begin (7) laborers;
new text end

new text begin (8) operating engineers;
new text end

new text begin (9) painters;
new text end

new text begin (10) pipefitters;
new text end

new text begin (11) plasterers;
new text end

new text begin (12) plumbers;
new text end

new text begin (13) roofers;
new text end

new text begin (14) sheet metal workers; and
new text end

new text begin (15) sprinkler fitters.
new text end

new text begin Building and construction trades does not include machinists or teamsters.
new text end

new text begin (c) "Employers" means the city of St. Paul and Independent School District No. 625,
St. Paul.
new text end

new text begin (d) "Grandfathered trades employees" means trades employees on whose behalf an
employer made contributions on or before June 30, 2020, to PERA and to one or more
multiemployer plans other than as provided in section 356.24, subdivision 1, clause (8), (9),
or (10).
new text end

new text begin (e) "Multiemployer plan" means a plan or fund subject to the federal Employee
Retirement Income Security Act of 1974, as amended, to which more than one employer
is required to contribute and that is maintained pursuant to one or more collective bargaining
agreements between one or more labor organizations and more than one employer. For
purposes of this section, a multiemployer plan may be: (1) either a defined benefit pension
plan or a defined contribution retirement plan; and (2) either a plan that covers employees
in one or more local units in the state of Minnesota or a plan that covers union employees
nationwide.
new text end

new text begin (f) "PERA" means the Public Employees Retirement Association general plan established
under chapter 353.
new text end

new text begin (g) "Trades employees" means employees principally employed in one of the building
and construction trades.
new text end

new text begin Subd. 2. new text end

new text begin Negotiating over contributions to multiemployer plans authorized. new text end

new text begin The
employers are authorized to negotiate, with labor organizations representing trades
employees, collective bargaining agreements that provide for contributions to multiemployer
plans on the basis of hours worked or paid. Any provision must identify each multiemployer
plan to which contributions are to be made and, beginning with any such collective bargaining
agreement or renewal thereof entered into after June 30, 2020, must include the employer
identification number and plan number unique to the plan.
new text end

new text begin Subd. 3. new text end

new text begin Participation in PERA. new text end

new text begin (a) In connection with services performed for an
employer under a collective bargaining agreement authorized by subdivision 2, a trades
employee first hired by the employer on or after July 1, 2020, shall not participate in PERA,
except for a trades employee whose employer makes contributions on behalf of the trades
employee to PERA and to one or more multiemployer plans as provided in section 356.24,
subdivision 1, clause (8), (9), or (10).
new text end

new text begin (b) Grandfathered trades employees shall continue to participate in PERA according to
chapter 353 and in one or more multiemployer plans pursuant to a collective bargaining
agreement authorized by subdivision 2. Participation shall not be subject to section 356.24.
new text end

new text begin Subd. 4. new text end

new text begin Employer's reporting obligation. new text end

new text begin (a) If an employer negotiates a collective
bargaining agreement authorized by subdivision 2 that covers grandfathered trades
employees, the employer shall annually submit a report that satisfies the requirements of
paragraph (b) to the executive director of the Legislative Commission on Pensions and
Retirement annually, no later than 60 days after the end of the employer's fiscal year.
new text end

new text begin (b) The report shall provide for each labor organization the number of grandfathered
trades employees for whom the employer made contributions during the prior fiscal year.
new text end

new text begin (c) After receiving a report from an employer, the executive director of the Legislative
Commission on Pensions and Retirement may request additional information that the
employer shall promptly provide.
new text end

new text begin (d) The reporting obligation expires upon submission of a report for the last fiscal year
in which the employer makes a contribution to PERA with respect to a grandfathered trades
employee.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, section 356.24, subdivision 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 3

MODIFICATIONS TO PERA PROVISIONS RELATING TO
PRIVATIZATION OF MEDICAL FACILITIES

Section 1.

Minnesota Statutes 2018, section 353F.02, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Executive director. new text end

new text begin "Executive director" means the executive director of the
Public Employees Retirement Association.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 2.

Minnesota Statutes 2018, section 353F.02, is amended by adding a subdivision to
read:


new text begin Subd. 4a. new text end

new text begin Medical facility. new text end

new text begin "Medical facility" means a facility that has the primary
purpose of providing medical care and that satisfies the definition of governmental
subdivision under section 353.01, subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 3.

Minnesota Statutes 2018, section 353F.02, is amended by adding a subdivision to
read:


new text begin Subd. 4b. new text end

new text begin Privatization. new text end

new text begin "Privatization" means a medical facility that privatizes when
the facility ceases to be a governmental subdivision for any reason other than that the medical
facility closes or permanently ceases to operate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 4.

Minnesota Statutes 2018, section 353F.04, is amended to read:


353F.04 AUGMENTATION INTEREST RATES FOR PRIVATIZED FORMER
PUBLIC EMPLOYEES.

Subdivision 1.

Enhanced augmentation rates.

(a) The deferred annuity of a privatized
former public employee is subject to augmentation under section deleted text begin353.71, subdivision 2, of
the edition of Minnesota Statutes published in the year in which the privatization occurred
deleted text endnew text begin
353.34, subdivision 3
new text end, except that the rate of augmentation is as specified in this deleted text beginsubdivisiondeleted text endnew text begin
section
new text end.

(b) This paragraph applies if the effective date of privatization was on or before January
1, 2007, and also applies to Hutchinson Area Health Care with a privatization effective date
of January 1, 2008. For a privatized former public employee, the augmentation rate is 5.5
percent compounded annually until January 1 following the year in which the person attains
age 55. deleted text beginFromdeleted text end new text beginAfter new text endthat date deleted text beginto the effective date of retirementdeleted text end, the augmentation rate is 7.5
percent compounded annually.

(c) If paragraph (b) is not applicable, and if the effective date of the privatization is new text beginafter
January 1, 2007, and
new text endbefore January 1, 2011, new text beginthen new text endthe augmentation rate is four percent
compounded annually until January 1, following the year in which the person attains age
55. deleted text beginFromdeleted text end new text beginAfter new text endthat date deleted text beginto the effective date of retirementdeleted text end, the augmentation rate is six
percent compounded annually.

(d) If the effective date of the privatization is after December 31, 2010, the deleted text beginapplicabledeleted text end
augmentation rate depends on the result of computations specified in section 353F.025,
subdivision 1
. If those computations indicate no loss or a net gain to the fund of the general
employees retirement plan of the Public Employees Retirement Association, the augmentation
rate is two percent compounded annually deleted text beginuntil the effective date of retirementdeleted text end. If the
computations under that subdivision indicate a net loss to the fund if a two percent
augmentation rate is used, but a net gain or no loss if a one percent rate is used, then the
augmentation rate is one percent compounded annually deleted text beginuntil the effective date of retirementdeleted text end.

new text begin (e) Notwithstanding paragraphs (b) to (d), after June 30, 2020, and before January 1,
2024, the augmentation rate for all privatized former public employees under paragraphs
(b) to (d) is two percent compounded annually. After December 31, 2023, no additional
augmentation is applied to the privatized former public employee's deferred annuity.
new text end

Subd. 2.

Exceptions.

The deleted text beginincreaseddeleted text end augmentation rates specified in subdivision 1 do
not apply to a privatized former public employee:

(1) beginning the first of the month in which the privatized former public employee
becomes covered again by a retirement plan enumerated in section 356.30, subdivision 3,
if the employee accrues at least six months of credited service in any single plan enumerated
in section 356.30, subdivision 3, except clause (6);

(2) beginning the first of the month in which the privatized former public employee
becomes covered again by the general employees retirement plan of the Public Employees
Retirement Association;

(3) beginning the first of the month after a privatized former public employee terminates
service with the privatized former public employer; deleted text beginor
deleted text end

(4) if the deleted text beginpersondeleted text end new text beginprivatized former public employee new text endbegins receipt of a retirement annuity
while employed by the deleted text beginemployer which assumed operations of or purchased thedeleted text end privatized
former public employerdeleted text begin.deleted text endnew text begin; or
new text end

new text begin (5) if the effective date of privatization occurs after June 30, 2020.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

ARTICLE 4

MODIFICATIONS TO STATE AUDITOR REPORTING
REQUIREMENTS FOR PENSION PLANS

Section 1.

Minnesota Statutes 2018, section 356.219, subdivision 1, is amended to read:


Subdivision 1.

Report required.

(a) The deleted text beginState Board of Investment, on behalf of the
public pension funds and programs for which it is the investment authority, and any
Minnesota public pension plan that is not fully invested through the State Board of
Investment, including the
deleted text end Bloomington Fire Department Relief Association deleted text beginand a localdeleted text endnew text begin,new text end
volunteer firefighters relief deleted text beginassociationdeleted text end new text beginassociations new text endgoverned by sections 424A.091 to
424A.095, deleted text beginshalldeleted text end new text beginthe St. Paul Teachers Retirement Fund Association, and any Minnesota
public pension plan that is not fully invested through the State Board of Investment, must
new text end report the information specified in subdivision 3 to the state auditor. The state auditor may
prescribe a form or forms for the purposes of the reporting requirements contained in this
section.

deleted text begin (b) The Bloomington Fire Department Relief Association and a local volunteer firefighters
relief association governed by sections 424A.091 to 424A.095 is fully invested during a
given calendar year for purposes of this section if all assets of the applicable pension plan
beyond sufficient cash equivalent investments to cover six months expected expenses are
invested under section 11A.17. The board of any fully invested public pension plan remains
responsible for submitting investment policy statements and subsequent revisions as required
by subdivision 3, paragraph (a).
deleted text end

deleted text begin (c) For purposes of this section, the State Board of Investment is considered to be the
investment authority for any Minnesota public pension fund required to be invested by the
State Board of Investment under section 11A.23, or for any Minnesota public pension fund
authorized to invest in the supplemental investment fund under section 11A.17 and which
is fully invested by the State Board of Investment.
deleted text end

new text begin (b) For purposes of this section, a pension plan is fully invested through the State Board
of Investment during a given calendar year if all assets of the pension plan beyond sufficient
cash equivalent investments to cover six months of expected expenses are invested under
section 11A.17.
new text end

new text begin (c) A public pension plan to which subdivision 3, paragraph (b) or (c), applies is not
required to file the report required by this subdivision for a given calendar year if the pension
plan's most recent annual financial audit was conducted by the state auditor.
new text end

(d) This section does not apply to the following plans:

(1) the Minnesota unclassified employees retirement program under chapter 352D;

(2) the public employees defined contribution plan under chapter 353D;

(3) the individual retirement account plans under chapters 354B and 354D;

(4) the higher education supplemental retirement plan under chapter 354C;

(5) any alternative retirement benefit plan established under section 383B.914; deleted text beginand
deleted text end

(6) the University of Minnesota faculty retirement plandeleted text begin.deleted text endnew text begin and supplemental plan; and
new text end

new text begin (7) any other statewide plan required to be invested by the State Board of Investment
under section 11A.23.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2019 Supplement, section 356.219, subdivision 3, is amended
to read:


Subd. 3.

Content of reports.

(a) The report required by subdivision 1 must include a
written statement of the investment policy. Following that initial report, subsequent reports
must include investment policy changes and the effective date of each policy change rather
than a complete statement of investment policy, unless the state auditor requests submission
of a complete current statement. The report must also include the information required by
the following paragraphs, as applicable.

(b) deleted text beginIf, after four years of reporting under this paragraph, the total portfolio time weighted
rate of return, net of all investment related costs and fees, provided by the public pension
plan differs by no more than 0.1 percent from the comparable return for the plan calculated
by the Office of the State Auditor, and if a public pension plan has a total market value of
$50,000,000 or more as of the beginning of the calendar year, and if the public pension
plan's annual audit is performed by the state auditor or by the legislative auditor,
deleted text end new text beginFor public
pension plans not fully invested through the State Board of Investment with assets having
a market value of $50,000,000 or more as of the beginning of the calendar year, or that had
a market value of $50,000,000 or more in a prior calendar year,
new text endthe report required by
subdivision 1 must include deleted text beginthe market value of the total portfolio and the market value of
each asset class included in the pension fund as of the beginning of the calendar year and
as of the end of the calendar year. At the discretion of the state auditor, the public pension
plan may be required to submit
deleted text endnew text begin the following:
new text end

new text begin (1)new text end the market value of the total portfolio and the market value of each investment
account, investment portfolio, or asset class included in the pension fund for each monthdeleted text begin,
and
deleted text endnew text begin;
new text end

new text begin (2)new text end the amount and date of each injection and withdrawal to the total portfolio and to
each investment account, investment portfolio, or asset classdeleted text begin. If the market value of a public
pension plan's fund drops below $50,000,000 in a subsequent year, it must continue reporting
under this paragraph for any subsequent year in which the public pension plan is not fully
invested as specified in subdivision 1, paragraph (b), except that if the public pension plan's
annual audit is not performed by the state auditor or legislative auditor, paragraph (c) applies.
deleted text endnew text begin;
new text end

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

deleted text begin (d) For public pension plans to which paragraph (b) or (c) applies, the report required
by subdivision 1 must also include
deleted text end new text begin(3) new text enda calculation of the total time-weighted rate of return
available from index-matching investmentsnew text begin,new text end assuming the asset class performance targets
and target asset mix indicated in the written statement of investment policydeleted text begin. The provided
information must include
deleted text endnew text begin;
new text end

new text begin (4)new text end a description of indices used in the analyses and an explanation of why those indices
are appropriatedeleted text begin. This paragraph does not apply to any fully invested plan, as defined by
subdivision 1, paragraph (b). Reporting by the State Board of Investment under this paragraph
is limited to information on the Minnesota public pension plans required to be invested by
the State Board of Investment under section 11A.23.
deleted text endnew text begin;
new text end

new text begin (5) computed time-weighted rates of return; and
new text end

new text begin (6) any other information required by the state auditor.
new text end

new text begin (c) For public pension plans fully invested through the State Board of Investment with
assets having a market value of $50,000,000 or more as of the beginning of the calendar
year, or that had a market value of $50,000,000 or more in a prior calendar year, the report
required by subdivision 1 must be in the form required by the state auditor and include the
information needed by the state auditor to supplement the reporting available from the State
Board of Investment.
new text end

deleted text begin (e)deleted text endnew text begin (d)new text end If a public pension plan has new text beginassets with new text enda total market value of less than
$50,000,000 as of the beginning of the calendar year and was never required to file under
paragraph (b) or (c), the report required by subdivision 1 must include thenew text begin following:
new text end

new text begin (1) unless paragraph (f) applies, thenew text end amount and date of each total portfolio injection
and withdrawaldeleted text begin. In addition, the report must includedeleted text endnew text begin; and
new text end

new text begin (2)new text end the market value of the total portfolio as of the beginning of the calendar year and
for each quarter.

deleted text begin (f) Any public pension plan reporting under paragraph (b) or (c) must include computed
time-weighted rates of return with the report, in addition to all other required information,
as applicable. The chief administrative officer of the public pension plan submitting the
returns must certify, on a form prescribed by the state auditor, that the returns have been
computed by the pension plan's investment performance consultant or custodial bank. The
chief administrative officer of the public pension plan submitting the returns also must
certify that the returns are net of all costs and fees, including investment management fees,
and that the procedures used to compute the returns are consistent with Bank Administration
Institute studies of investment performance measurement and presentation standards set by
the CFA Institute. If the certifications required under this paragraph are not provided, the
reporting requirements of paragraph (c) apply.
deleted text end

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

new text begin (f) A public pension plan reporting under paragraph (d) that is fully invested through
the State Board of Investment for the given calendar year is required to report the market
value of the total portfolio as of the beginning of the calendar year and for each quarter, but
need not report the amount and date of each total portfolio injection and withdrawal.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2018, section 356.219, subdivision 6, is amended to read:


Subd. 6.

Investment disclosure report.

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2018, section 356.219, subdivision 7, is amended to read:


Subd. 7.

Expense of report.

All administrative expenses incurred relating to the
investment report by the state auditor described in subdivision 6 must be borne by the deleted text beginOffice
of the
deleted text end state auditor and may not be charged back to the entities described in subdivisions 1
or 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2019 Supplement, section 356.219, subdivision 8, is amended
to read:


Subd. 8.

Timing of reports.

(a) For the Bloomington Fire Department Relief Association
and the volunteer deleted text beginfirefighterdeleted text end new text beginfirefighters new text endrelief associations, the information required under
this section must be submitted by the due date for reports required under section 424A.014,
subdivision 1
or 2, as applicable. deleted text beginIf a relief association satisfies the definition of a fully
invested plan under subdivision 1, paragraph (b), for the calendar year covered by the report
required under section 424A.014, subdivision 1 or 2, as applicable, the chief administrative
officer of the covered pension plan shall certify that compliance on a form prescribed by
the state auditor. The state auditor shall transmit annually to the State Board of Investment
a list or lists of covered pension plans which submitted certifications in order to facilitate
reporting by the State Board of Investment under paragraph (c).
deleted text end

(b) For the St. Paul Teachers Retirement Fund Association deleted text beginand the University of
Minnesota faculty supplemental retirement plan
deleted text end, the information required under this section
must be submitted to the state auditor by June 1 of each year.

(c) deleted text beginThe State Board of Investment, on behalf ofdeleted text end new text beginAny public new text endpension deleted text beginfunds specified in
subdivision 1,
deleted text end new text beginplan required to submit information under this section that is not identified
in
new text endparagraph deleted text begin(c), shall reportdeleted text end new text begin(a) or (b) must submit the new text endinformation deleted text beginrequired under this
section
deleted text end new text beginto the state auditor new text endby deleted text beginSeptemberdeleted text end new text beginJune new text end1 of each year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 5

MINNESOTA STATE RETIREMENT SYSTEM ADMINISTRATIVE PROVISIONS

Section 1.

Minnesota Statutes 2018, section 352.01, subdivision 26, is amended to read:


Subd. 26.

Dependent child.

"Dependent child" means new text beginan individual who is new text enda biological
or adopted child of a deceased employee deleted text beginwhodeleted text endnew text begin,new text end has not reached the age of 20new text begin,new text end and is dependent
upon the employee for more than one-half of the child's support at the time of the employee's
death. It also means a child of the member conceived during the member's lifetime and born
after the member's deathnew text begin, unless a parent-child relationship does not exist under section
524.2-120, subdivision 10
new text end.

Sec. 2.

Minnesota Statutes 2018, section 352.04, subdivision 4, is amended to read:


Subd. 4.

Payroll deductions.

deleted text beginThe head ofdeleted text end Each deleted text begindepartmentdeleted text end new text beginemploying entity new text endshall have
employee contributions deducted from the salary of each employee covered by the system
on every payroll abstract and shall approve one voucher payable to the commissioner of
management and budget for the aggregate amount deducted on the payroll abstract.
Deductions from salaries of employees paid deleted text begindirectdeleted text end new text begindirectly new text endby any deleted text begindepartment, institution,
or agency of the state
deleted text end new text beginemploying entity new text endmust be made by the officer or employee authorized
by law to pay the salaries. deleted text beginThe head of any department or agencydeleted text end new text beginAny employing entity
new text end having authority to appoint any employee who receives fees as compensation or who receives
compensation on federal payrolls shall collect as the required employee contribution the
applicable amounts required in subdivision 2. Deductions from salary and amounts collected
must be remitted to the director with a statement showing the amount of earnings or fees,
and in the case of fees, the number of transactions, deleted text beginanddeleted text end the amount of each of the deductions
and collectionsnew text begin,new text end and the names of the employees on whose account they have been made.

Sec. 3.

Minnesota Statutes 2018, section 352.04, subdivision 8, is amended to read:


Subd. 8.

deleted text beginDepartmentdeleted text end new text beginEmploying entity new text endrequired to pay omitted salary deductions.

(a)
If deleted text begina departmentdeleted text end new text beginan employing entity new text endfails to take deductions past due for a period of 60 days
or less from an employee's salary as provided in this section, those deductions must be taken
on later payroll abstracts.

(b) If deleted text begina departmentdeleted text endnew text begin an employing entitynew text end fails to take deductions past due for a period in
excess of 60 days from an employee's salary as provided in this section, the deleted text begindepartmentdeleted text endnew text begin
employing entity
new text end, and not the employee, must pay on later payroll abstracts the employee
and employer contributions and interest at the applicable annual rate or rates specified in
section 356.59, subdivision 2, compounded annually, from the date the employee and
employer contributions should have been deducted to the date payment of the total amount
due is paid by the deleted text begindepartmentdeleted text endnew text begin employing entitynew text end.

(c) If deleted text begina departmentdeleted text endnew text begin an employing entitynew text end fails to take deductions past due for a period of
60 days or less and the employee is no longer in state service so that the required deductions
cannot be taken from the salary of the employee, the deleted text begindepartmentdeleted text end new text beginemploying entity new text endmust
nevertheless pay the required employer contributions. If any deleted text begindepartmentdeleted text end new text beginemploying entity
new text end fails to take deductions past due for a period in excess of 60 days and the employee is no
longer in state service, the omitted contributions must be recovered under paragraph (b).

(d) If an employee from whose salary required deductions were past due for a period of
60 days or less leaves state service before the payment of the omitted deductions and
subsequently returns to state service, the unpaid amount is considered the equivalent of a
refund. The employee accrues no right by reason of the unpaid amount, except that the
employee may pay the amount of omitted deductions as provided in section 352.23.

Sec. 4.

Minnesota Statutes 2019 Supplement, section 352.04, subdivision 9, is amended
to read:


Subd. 9.

Erroneous deductions, canceled payments.

(a) Deductions taken from the
salary of an employee for the retirement fund in excess of required amounts must, upon
discovery and verification by the deleted text begindepartmentdeleted text endnew text begin employing entitynew text end making the deduction, be
refunded to the employee.new text begin Employer contributions made in excess of required amounts must
be refunded or credited to the employing entity that made the contribution.
new text end

(b) If a deduction for the retirement fund is taken from a salary payment, and the payment
is canceled or the amount of the payment returned to the funds of the deleted text begindepartmentdeleted text endnew text begin employing
entity
new text end making the payment, the sum deducted, or the part of it required to adjust the
deductions, must be refunded new text beginor credited new text endto the deleted text begindepartment or institutiondeleted text end new text beginemploying entity
new text end if the deleted text begindepartmentdeleted text end new text beginemploying entity new text endapplies for the refund on a form furnished by the director.deleted text begin
The department's payments must likewise be refunded to the department.
deleted text end

(c) If erroneous employee deductions and employer contributions are caused by an error
in plan coverage involving the plan and any other plans specified in section 356.99, that
section applies. If the employee should have been covered by the plan governed by chapter
352D, 353D, 354B, or 354D, the employee deductions and employer contributions taken
in error must be directly transferred to the applicable employee's account in the correct
retirement plan, with interest at the applicable monthly rate or rates specified in section
356.59, subdivision 2, compounded annually, from the first day of the month following the
month in which coverage should have commenced in the correct defined contribution plan
until the end of the month in which the transfer occurs.

Sec. 5.

Minnesota Statutes 2018, section 352.04, is amended by adding a subdivision to
read:


new text begin Subd. 13. new text end

new text begin "Employing entity" defined. new text end

new text begin In this section, "employing entity" means the
entity that pays a state employee's salary and remits retirement contributions.
new text end

Sec. 6.

Minnesota Statutes 2019 Supplement, section 352.113, subdivision 2, is amended
to read:


Subd. 2.

Application; accrual of benefits.

(a) An employee making claim for a total
and permanent disability benefit, or someone acting on behalf of the employee upon proof
of authority satisfactory to the director, shall file a written application for benefits in deleted text beginthedeleted text endnew text begin annew text end
office of the system deleted text beginon or before the deadline specified in subdivision 4, paragraph (g)deleted text endnew text begin or
with a person authorized by the director
new text end.

(b) The application must be in a form and manner prescribed by the deleted text beginexecutivedeleted text end directordeleted text begin
and include the medical reports required by subdivision 4, paragraph (b)
deleted text end.new text begin The completed
application form and supporting documents must be received in an office of the system or
by an authorized person before the expiration of the period specified in subdivision 4,
paragraph (g). In this paragraph, "supporting documents" means:
new text end

new text begin (1) two medical reports as required by subdivision 4, paragraph (b); and
new text end

new text begin (2) a written certification by the employing entity as required by subdivision 4, paragraph
(e).
new text end

new text begin Supporting documents are not required to be original documents except as determined
by the director.
new text end

(c) The benefit shall begin to accrue the day following the start of disability or the day
following the last day paid, whichever is later, but not earlier than 180 days before the date
the application deleted text beginisdeleted text end new text beginand supporting documents are new text endfiled in an office of the systemnew text begin or with an
authorized person
new text end.

Sec. 7.

Minnesota Statutes 2018, section 352.113, subdivision 4, is amended to read:


Subd. 4.

Medical or psychological examinations; authorization for payment of
benefit.

(a) Any physician, psychologist, chiropractor, physician assistant,new text begin podiatrist,new text end or
nurse practitioner providing any service specified in this section must be licensed.

(b) An applicant shall provide a detailed report signed by a physician, and at least one
additional report signed by a physician, psychologist, chiropractor, physician assistant,new text begin
podiatrist,
new text end or nurse practitioner with evidence to support an application for total and
permanent disability. The reports must include an expert opinion regarding whether the
employee is permanently and totally disabled within the meaning of section 352.01,
subdivision 17
, and that the disability arose before the employee was placed on any paid or
unpaid leave of absence or terminated public service.

(c) If there is medical evidence that supports the expectation that at some point the person
applying for the disability benefit will no longer be disabled, the decision granting the
disability benefit may provide for a termination date upon which the total and permanent
disability can be expected to no longer exist. When a termination date is part of the decision
granting benefits, prior to the benefit termination the executive director shall review any
evidence provided by the disabled employee to show that the disabling condition for which
benefits were initially granted continues. If the benefits cease, the disabled employee may
follow the appeal procedures described in section 356.96 or may reapply for disability
benefits using the process described in this subdivision.

(d) Any claim to disability must be supported by a report from the employer indicating
that there is no available work that the employee can perform with the disabling condition
and that all reasonable accommodations have been considered. Upon request of the executive
director, an employer shall provide evidence of the steps the employer has taken to attempt
to provide reasonable accommodations and continued employment to the claimant.

(e) The director shall also obtain written certification from the employer stating whether
the employment has ceased or whether the employee is on sick leave of absence because
of a disability that will prevent further service to the employer and that the employee is not
entitled to compensation from the employer.

(f) The medical adviser shall consider the reports of the physician, psychologist,
chiropractor, physician assistant,new text begin podiatrist,new text end or nurse practitioner and any other evidence
supplied by the employee or other interested parties. If the medical adviser finds the employee
totally and permanently disabled, the adviser shall make appropriate recommendation to
the director in writing together with the date from which the employee has been totally
disabled. The director shall then determine if the disability occurred while still in the
employment of the state and constitutes a total and permanent disability as defined in section
352.01, subdivision 17.

(g) A terminated employee may apply for a disability benefit within 18 months of
termination as long as the disability occurred while in the employment of the state. The fact
that an employee is placed on leave of absence without compensation because of disability
does not bar that employee from receiving a disability benefit.

(h) Upon appeal, the board of directors may extend the disability benefit application
deadline in paragraph (g) by an additional 18 months if the terminated employee is
determined by the board of directors to have a cognitive impairment that made it unlikely
that the terminated employee understood that there was an application deadline or that the
terminated employee was able to meet the application deadline.

(i) Unless the payment of a disability benefit has terminated because the employee is
no longer totally disabled, or because the employee has reached normal retirement age as
provided in this section, the disability benefit must cease with the last payment received by
the disabled employee or which had accrued during the lifetime of the employee unless
there is a spouse surviving. In that event, the surviving spouse is entitled to the disability
benefit for the calendar month in which the disabled employee died.

Sec. 8.

Minnesota Statutes 2019 Supplement, section 352.23, is amended to read:


352.23 TERMINATION OF RIGHTS; REPAYMENT OF REFUND.

(a) When any employee accepts a refund as provided in section 352.22, all existing
allowable service credits and all rights and benefits to which the employee was entitled
before accepting the refund terminate.

(b) Terminated service credits and rights must not again be restored until the former
employee acquires at least six months of allowable service credit after taking the last refund
and repays all refunds previously taken from the retirement fund with interest as provided
in paragraph (d). deleted text beginIf an employee repays only part of a refund or repays a refund in partial
payments as permitted under paragraph (d), service credit will be restored in accordance
with section 356.44.
deleted text end An employee will not be considered as entitled to any other benefit,
including benefits for which the employee may be eligible because of the employee's original
hire date into public employment, until full repayment of all refunds has been made.

(c) Repayment of refunds entitles the employee only to credit for service covered by (1)
salary deductions; (2) payments previously made in lieu of salary deductions as permitted
under law in effect when the payment in lieu of deductions was made; (3) payments made
to obtain credit for service as permitted by laws in effect when payment was made; and (4)
allowable service previously credited while receiving temporary workers' compensation as
provided in section 352.01, subdivision 11, paragraph (a), clause (3).

(d) Payments under this section for repayment of refunds are to be paid with interest at
the applicable annual rate or rates specified in section 356.59, subdivision 2, compounded
annually, from the date the refund was taken until the date the refund is repaid. Repayment
may be made deleted text beginin partial payments consistent with section 356.44 during employment ordeleted text end in
a lump sum new text beginduring employment or new text endup to six months after termination from service.

Sec. 9.

Minnesota Statutes 2018, section 352.95, subdivision 3, is amended to read:


Subd. 3.

Applying for benefits; accrual.

No application for disability benefits may be
made until after the last day physically on the job. The disability benefit begins to accrue
the day following the last day for which the employee is paid sick leave or annual leave,
but not earlier than 180 days before the date the application is filed. A terminated employee
must file a written application deleted text beginwithin the time frame specified under section 352.113,
subdivision 4
, paragraph (g)
deleted text endnew text begin in an office of the system or with a person authorized by the
executive director. Applications must comply with section 352.113, subdivision 2, paragraph
(b)
new text end.

Sec. 10.

Minnesota Statutes 2018, section 352B.011, subdivision 6, is amended to read:


Subd. 6.

Dependent child.

"Dependent child" means new text beginan individual who is new text enda natural or
adopted unmarried child of a deceased member new text beginand is new text endunder the age of 18 years, including
any child of the member conceived during the lifetime of the member and born after the
death of the membernew text begin unless a parent-child relationship does not exist under section 524-2.120,
subdivision 10
new text end.

Sec. 11.

Minnesota Statutes 2018, section 352B.011, subdivision 10, is amended to read:


Subd. 10.

Member.

"Member" means:

(1) a State Patrol member currently employed under section 299D.03 by the state, who
is a peace officer under section 626.84, and whose salary or compensation is paid out of
state funds;

(2) a conservation officer employed under section 97A.201, currently employed by the
state, whose salary or compensation is paid out of state funds;

(3) a crime bureau officer who was employed by the crime bureau and was a member
of the Highway Patrolmen's retirement fund on July 1, 1978, whether or not that person has
the power of arrest by warrant after that date, or who is employed as police personnel, with
powers of arrest by warrant under Minnesota Statutes 2009, section 299C.04, and who is
currently employed by the state, and whose salary or compensation is paid out of state funds;

deleted text begin (4) a person who is employed by the state in the Department of Public Safety in a data
processing management position with salary or compensation paid from state funds, who
was a crime bureau officer covered by the State Patrol retirement plan on August 15, 1987,
and who was initially hired in the data processing management position within the department
during September 1987, or January 1988, with membership continuing for the duration of
the person's employment in that position, whether or not the person has the power of arrest
by warrant after August 15, 1987;
deleted text end

deleted text begin (5)deleted text end new text begin(4) new text enda public safety employee who is a peace officer under section 626.84, subdivision
1
, paragraph (c), and who is employed by the Division of Alcohol and Gambling Enforcement
under section 299L.01;

deleted text begin (6)deleted text end new text begin(5) new text enda Fugitive Apprehension Unit officer after October 31, 2000, who is employed
by the Office of Special Investigations of the Department of Corrections and who is a peace
officer under section 626.84;

deleted text begin (7)deleted text end new text begin(6) new text endan employee of the Department of Commerce defined as a peace officer in section
626.84, subdivision 1, paragraph (c), who is employed by the Commerce Fraud Bureau
under section 45.0135 after January 1, 2005, and who has not attained the mandatory
retirement age specified in section 43A.34, subdivision 4; and

deleted text begin (8)deleted text end new text begin(7) new text endan employee of the Department of Public Safety, who is a licensed peace officer
under section 626.84, subdivision 1, paragraph (c), and is employed as the statewide
coordinator of the Violent Crime Coordinating Council.

Sec. 12.

Minnesota Statutes 2018, section 352B.10, subdivision 2a, is amended to read:


Subd. 2a.

Applying for benefits; accrual.

No application for disability benefits shall
be made until after the last day physically on the job. The disability benefit begins to accrue
the day following the last day for which the employee is paid sick leave or annual leave but
not earlier than 180 days before the date the application is filed. A member who is terminated
must file a written application deleted text beginwithin the time frame specified under section 352.113,
subdivision 4
, paragraph (g)
deleted text endnew text begin in an office of the system or with a person authorized by the
executive director. Applications must comply with section 352.113, subdivision 2, paragraph
(b)
new text end.

Sec. 13.

Minnesota Statutes 2018, section 356.24, subdivision 1, is amended to read:


Subdivision 1.

Restriction; exceptions.

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

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

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

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

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

deleted text begin (5) for employees other than personnel employed by the Board of Trustees of the
Minnesota State Colleges and Universities and covered under the Higher Education
Supplemental Retirement Plan under chapter 354C, but including city managers covered
by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph
(a), or by the defined contribution plan of the Public Employees Retirement Association
under section 353.028, subdivision 3, paragraph (b), if the supplemental plan coverage is
provided for in a personnel policy of the public employer or in the collective bargaining
agreement between the public employer and the exclusive representative of public employees
in an appropriate unit or in the individual employment contract between a city and a city
manager, and if for each available investment all fees and historic rates of return for the
prior one-, three-, five-, and ten-year periods, or since inception, are disclosed in an easily
comprehended document not to exceed two pages, in an amount matching employee
contributions on a dollar for dollar basis, but not to exceed an employer contribution of
one-half of the available elective deferral permitted per year per employee, under the Internal
Revenue Code:
deleted text end

deleted text begin (i) to the state of Minnesota deferred compensation plan under section 352.965;
deleted text end

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

deleted text begin (iii) any other deferred compensation plan offered by the employer under section 457
of the Internal Revenue Code;
deleted text end

new text begin (5) to a deferred compensation plan defined in subdivision 3;
new text end

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

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

(8) to the laborers national industrial pension fund or to a laborers local pension fund
for the employees of a governmental subdivision who are covered by a collective bargaining
agreement that provides for coverage by that fund and that sets forth a fund contribution
rate, but not to exceed an employer contribution of $7,000 per year per employee;

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

(10) to the international union of operating engineers pension fund for the employees
of a governmental subdivision who are covered by a collective bargaining agreement that
provides for coverage by that fund and that sets forth a fund contribution rate, but not to
exceed an employer contribution of $5,000 per year per employee;

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

deleted text begin (12)deleted text end new text begin(11) new text endto the International Association of Machinists national pension fund for the
employees of a governmental subdivision who are covered by a collective bargaining
agreement that provides for coverage by that fund and that sets forth a fund contribution
rate, but not to exceed an employer contribution of $5,000 per year per employee;

deleted text begin (13)deleted text end new text begin(12) new text endfor employees of United Hospital District, Blue Earth, to the state of Minnesota
deferred compensation program, if the employee makes a contribution, in an amount that
does not exceed the total percentage of covered salary under section 353.27, subdivisions
3 and 3a;

deleted text begin (14)deleted text end new text begin(13) new text endto the alternative retirement plans established by the Hennepin County Medical
Center under section 383B.914, subdivision 5; or

deleted text begin (15)deleted text end new text begin(14) new text endto the International Brotherhood of Teamsters Central States pension plan for
fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who
are members of the International Brotherhood of Teamsters Local 638 by virtue of that
employment.

Sec. 14.

Minnesota Statutes 2018, section 356.24, is amended by adding a subdivision to
read:


new text begin Subd. 3. new text end

new text begin Deferred compensation plan. new text end

new text begin (a) As used in this section, a "deferred
compensation plan" means a plan that satisfies the requirements in this subdivision.
new text end

new text begin (b) The plan is:
new text end

new text begin (1) the Minnesota deferred compensation plan under section 352.965;
new text end

new text begin (2) a tax-sheltered annuity program under section 403(b) of the federal Internal Revenue
Code; or
new text end

new text begin (3) a deferred compensation plan under section 457(b) of the federal Internal Revenue
Code.
new text end

new text begin (c) The plan administrator or custodian discloses at least annually to participants (1) all
fees, including administrative, maintenance, and investment fees, that impact the rate of
return on each investment fund available under the plan, and (2) for each investment fund,
the rates of return for the prior one-, three-, five-, and ten-year periods or for the life of the
fund, if shorter, in an easily understandable document. The plan administrator or custodian
must file a copy of this document with the executive director of the Legislative Commission
on Pensions and Retirement within 30 days of the end of each fiscal year of the plan.
new text end

new text begin (d) Enrollment in the plan is provided for in:
new text end

new text begin (1) a personnel policy of the public employer;
new text end

new text begin (2) a collective bargaining agreement between the public employer and the exclusive
representative of public employees in an appropriate unit; or
new text end

new text begin (3) an individual employment contract between a city and a city manager.
new text end

new text begin (e) The plan covers employees of a school district, state agency, or other governmental
subdivision. The plan may cover city managers covered by an alternative retirement
arrangement under section 353.028, subdivision 3, paragraph (a) or (b), but must not cover
employees of the Board of Trustees of Minnesota State who are covered by the Higher
Education Supplemental Retirement Plan under chapter 354C.
new text end

new text begin (f) Public funds are contributed to the plan only in an amount that matches employee
contributions on a dollar for dollar basis, but not to exceed the lesser of (1) the maximum
authorized under the policy described in paragraph (d) that provides for enrollment in the
plan or program, or (2) one-half of the annual limit on elective deferrals under section 402(g)
of the federal Internal Revenue Code.
new text end

new text begin (g) Contributions to the plan may include contributions deducted from an employee's
sick leave, accumulated vacation leave, or accumulated severance pay.
new text end

Sec. 15.

Minnesota Statutes 2018, section 490.121, subdivision 7c, is amended to read:


Subd. 7c.

Dependent surviving child.

"Dependent surviving child" means deleted text beginanydeleted text end new text beginan
individual who is an unmarried
new text endnatural or adopted child of a deceased judge deleted text beginwhodeleted text endnew text begin,new text end has not
reached the age of 18 yearsdeleted text begin,deleted text end ornew text begin,new text end having reached the age of 18, is under age 22 and deleted text beginwhodeleted text end is a
full-time student throughout the normal school year, deleted text beginis unmarried,deleted text end and deleted text beginisdeleted text end new text beginwas new text endactually
dependent for more than one-half of the child's support upon the judge for a period of at
least 90 days new text beginimmediately new text endbefore the judge's death. It also deleted text beginincludesdeleted text end new text beginmeans new text endany natural child
of the judge who was born after the death of the judgenew text begin unless a parent-child relationship
does not exist under section 524.2-120, subdivision 10
new text end.

Sec. 16.

Minnesota Statutes 2018, section 490.123, subdivision 5, is amended to read:


Subd. 5.

Direct state aid.

(a) The state shall pay $6,000,000 annually to the judges'
retirement fund. The aid is payable each deleted text beginOctoberdeleted text end new text beginJuly new text end1. deleted text beginThe commissioner of management
and budget shall pay the aid specified in this subdivision.
deleted text end The amount required is annually
appropriated from the general fund to the deleted text begincommissioner of management and budgetdeleted text endnew text begin judges'
retirement fund
new text end.

(b) The aid under paragraph (a) continues until the earlier of:

(1) the first day of the fiscal year following the fiscal year in which the actuarial value
of assets of the fund equals or exceeds 100 percent of the actuarial accrued liabilities as
reported by the actuary retained under section 356.214 in the annual actuarial valuation
prepared under section 356.215; or

(2) July 1, 2048.

Sec. 17.

Minnesota Statutes 2018, section 490.124, subdivision 1, is amended to read:


Subdivision 1.

Retirement annuity.

(a) Except as qualified hereinafter from and after
the mandatory retirement date, the normal retirement date, the early retirement date, or one
year from the disability retirement date, as the case may be, a retiring judge is eligible to
receive a retirement annuity from the judges' retirement fund.

(b) For a tier I program judge, the retirement annuity is an amount equal to:

(1) 2.7 percent multiplied by the judge's final average compensation with that result then
multiplied by the number of years and fractions of years of allowable service rendered
before July 1, 1980; plus

(2) 3.2 percent multiplied by the judge's final average compensation with that result then
multiplied by the number of years and fractions of years of allowable service rendered after
June 30, 1980.

(c) For a tier II program judge who was first appointed or elected as a judge before July
1, 2013, the retirement annuity is an amount equal to:

(1) 3.2 percent multiplied by the judge's final average compensation with that result then
multiplied by the number of years and fractions of years of allowable service rendered
before January 1, 2014; plus

(2) 2.5 percent multiplied by the judge's final average compensation with that result then
multiplied by the number of years and fractions of years of allowable service rendered after
December 31, 2013.

(d) For a tier II program judge who was first appointed or elected as a judge after June
30, 2013, the retirement annuity is an amount equal to deleted text beginthedeleted text end new text begin2.5 new text endpercent deleted text beginspecified in section
356.315, subdivision 8a,
deleted text end multiplied by the judge's final average compensation with that
result then multiplied by the number of years and fractions of years of allowable service.

(e) For a judge in the tier I program, service that exceeds the service credit limit in section
490.121, subdivision 22, must be excluded in calculating the retirement annuity, but the
compensation earned by the judge during this period of judicial service must be used in
determining a judge's final average compensation and calculating the retirement annuity.

Sec. 18. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, section 356.44, new text end new text begin is repealed.
new text end

Sec. 19. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 18 are effective July 1, 2020.
new text end

ARTICLE 6

PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
ADMINISTRATIVE PROVISIONS

Section 1.

Minnesota Statutes 2019 Supplement, section 353.01, subdivision 2b, is amended
to read:


Subd. 2b.

Excluded employees.

(a) The following public employees are not eligible to
participate as members of the association with retirement coverage by the general employees
retirement plan, the local government correctional employees retirement plan under chapter
353E, or the public employees police and fire retirement plan:

(1) persons whose annual salary from one governmental subdivision never exceeds an
amount, stipulated in writing in advance, of $5,100 if the person is not a school district
employee or $3,800 if the person is a school year employee. If annual compensation from
one governmental subdivision to an employee exceeds the stipulated amount in a calendar
year or a school year, whichever applies, after being stipulated in advance not to exceed the
applicable amount, the stipulation is no longer valid and contributions must be made on
behalf of the employee under section 353.27, subdivision 12, from the first month in which
the employee received salary exceeding $425 in a month;

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

(3) election judges and persons employed solely to administer elections;

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

(5) except as otherwise specified in subdivision 12a, employees who are employed solely
in a temporary position as defined under subdivision 12a, and employees who resign from
a nontemporary position and accept a temporary position within 30 days of that resignation
in the same governmental subdivision;

(6) employees who are employed by reason of work emergency caused by fire, flood,
storm, or similar disaster, but if the person becomes a probationary or provisional employee
within the same pay period, other than on a temporary basis, the person is a "public
employee" retroactively to the beginning of the pay period;

(7) employees who by virtue of their employment in one governmental subdivision are
required by law to be a member of and to contribute to any of the plans or funds administered
by the Minnesota State Retirement System, the Teachers Retirement Association, or the St.
Paul Teachers Retirement Fund Association, but this exclusion must not be construed to
prevent a person from being a member of and contributing to the Public Employees
Retirement Association and also belonging to and contributing to another public pension
plan or fund for other service occurring during the same period of time, and a person who
meets the definition of "public employee" in subdivision 2 by virtue of other service occurring
during the same period of time becomes a member of the association unless contributions
are made to another public retirement plan on the salary based on the other service or to the
Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;

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

(9) persons who are:

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

(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist
interns and are serving in a degree or residency program in a public hospital or in a public
clinic; or

(iii) students who are serving for a period not to exceed five years in an internship or a
residency program that is sponsored by a governmental subdivision, including an accredited
educational institution;

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

(11) for the first three years of employment, foreign citizens who are employed by a
governmental subdivision, except that the following foreign citizens are included employees
under subdivision 2a:

(i) employees of Hennepin County or Hennepin Healthcare System, Inc.;

(ii) employees legally authorized to work in the United States for three years or more;
and

(iii) employees otherwise required to participate under federal law;

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

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

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

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

(16) electrical workers, plumbers, carpenters, and associated trades personnel who are
employed by Independent School District No. 625, St. Paul, or the city of St. Paul, who
have retirement coverage under a collective bargaining agreement by the Electrical Workers
Local 110 pension plan, the United Association Plumbers Local 34 pension plan, or the
pension plan applicable to Carpenters Local 322 who were either first employed after May
1, 2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000,
chapter 461, article 7, section 5;

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

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

(19) employees who are hired after June 30, 2002, solely to fill seasonal positions under
subdivision 12b which are limited in duration by the employer to deleted text begin185 consecutive calendar
days
deleted text end new text begina period of six months new text endor less in each year of employment with the governmental
subdivision;

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

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

(22) reemployed annuitants of the association during the course of that reemployment;

(23) persons appointed to serve on a board or commission of a governmental subdivision
or an instrumentality thereof;

(24) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan
Transit Commission who are members of the International Brotherhood of Teamsters Local
638 and who are, by virtue of that employment, members of the International Brotherhood
of Teamsters Central States pension plan;

(25) electricians or pipefitters employed by the Minneapolis Park and Recreation Board,
with coverage under a collective bargaining agreement by the IBEW local 292, or pipefitters
local 539 pension plan, who were first employed before May 2, 2015, and who elected to
be excluded under Laws 2015, chapter 68, article 11, section 5; and

(26) laborers and associated trades personnel employed by the city of St. Paul or
Independent School District No. 625, St. Paul, who are designated as temporary employees
under a collective bargaining agreement and have retirement coverage by the Minnesota
Laborers Pension Fund who were either first employed on or after June 1, 2018, or, if first
employed before June 1, 2018, who elected to be excluded under Laws 2018, chapter 211,
article 16, section 13.

(b) Any person performing the duties of a public officer in a position defined in
subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
employee of an independent contractor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 2.

Minnesota Statutes 2019 Supplement, section 353.0141, subdivision 1, is amended
to read:


Subdivision 1.

Service credit purchase authorized.

(a) Unless prohibited under
paragraph (b), a member is eligible to purchase allowable service credit, not to exceed five
new text begin cumulative new text endyears of allowable service credit, for one or more periods of service in the
uniformed services, as defined in United States Code, title 38, section 4303(13), ifnew text begin:
new text end

new text begin (1)new text end the member has at least three years of allowable service credit with the general
employees retirement plan, the local government correctional employees retirement plan
under chapter 353E, or the public employees police and fire retirement plannew text begin;
new text end

new text begin (2) the member's current period of employment is at least six months;new text end and

new text begin (3) one of the following appliesnew text end:

deleted text begin (1)deleted text end new text begin(i) new text endthe member's service in the uniformed services occurred before becoming a public
employee as defined in section 353.01, subdivision 2; or

deleted text begin (2)deleted text end new text begin(ii) new text endthe member failed to obtain service credit for a uniformed services leave of
absence under section 353.01, subdivision 16, paragraph (a), clause (8).

(b) A service credit purchase is prohibited if:

(1) the member separated from service in the uniformed services with a dishonorable
or bad conduct discharge or under other than honorable conditions; or

(2) the member has purchased or otherwise received service credit from any Minnesota
public employee pension plan for the same period of service in the uniformed services.

new text begin (c) When purchasing a period of service, if the period of service in the uniformed services
is one year or less, then the member must purchase the full period of service. If the period
of service in the uniformed services is longer than one year, the member may purchase the
full period, not to exceed five cumulative years, or may purchase a portion of the period of
service. If a member wishes to purchase a portion of the period of service, the portion must:
new text end

new text begin (1) not be less than one year; and
new text end

new text begin (2) be in increments of six months of service.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 3.

Minnesota Statutes 2018, section 353.29, subdivision 1, is amended to read:


Subdivision 1.

Age and allowable service requirements.

Upon termination of
deleted text begin membershipdeleted text endnew text begin public servicenew text end, a deleted text beginpersondeleted text end new text beginmember new text endwho has attained normal retirement age and
who is vested under section 353.01, subdivision 47, is entitled upon application to a
retirement annuity. The retirement annuity is known as the "normal" retirement annuity.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 4.

Minnesota Statutes 2018, section 353.29, subdivision 7, is amended to read:


Subd. 7.

Annuity starting date.

(a) Except as specified in paragraph (b), a retirement
annuity granted under this chapter begins on the first day of the first calendar month after
the date of termination of public service or up to deleted text beginsixdeleted text end new text beginfive new text endmonths before the first of the month
in which a complete application is received by the executive director under subdivision 4,
whichever is later. The annuity must be paid in equal monthly installmentsdeleted text begin, unless suspended
or reduced under section 353.37
deleted text end. Annuity payments shall not be paid beyond the end of the
month in which entitlement to the annuity has terminated.

(b) An annuity granted to an elected public official may begin on the day following the
expiration of the public office that qualified the elected official for membership under section
353.01, subdivision 2a or 2d, if a complete application is received by the executive director
under subdivision 4 within six months of the date of termination of public service. The
annuity for the month during which the expiration occurred is prorated accordingly.

(c) An annuity, once granted, must not be increased, decreased, or revoked except under
this chapter.

(d) If an annuitant dies before negotiating the check for the month in which death occurs,
payment must first be made to the surviving spouse, or if none, then to the designated
beneficiary, or if none, lastly to the estate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 5.

Minnesota Statutes 2018, section 353.30, subdivision 3c, is amended to read:


Subd. 3c.

Effective date of bounce-back annuity.

In the event of the death of the
designated optional annuity beneficiary before the retired employee or disabilitant, the
restoration of the normal single life annuity under subdivision 3a or 3b will take effect on
the first of the month following the date of death of the designated optional annuity
beneficiary or deleted text beginondeleted text end new text beginup to five months before new text endthe first of the month deleted text beginfollowing six months beforedeleted text end
new text begin in which new text endsatisfactory verification of the death is established by the executive director,
whichever date is later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 6.

Minnesota Statutes 2018, section 353.31, subdivision 8, is amended to read:


Subd. 8.

Accrual of benefits.

All benefits under this section and survivor benefits
otherwise provided in this chapter when payable to persons qualifying therefor shall accrue
on the deleted text beginfirst day following thedeleted text end new text begindate of new text enddeath of a deleted text begin"basic member"deleted text end new text beginbasic member new text endor the first
day of the month following the death of an annuitant or disabilitant. No payment may be
made retroactively deleted text beginfordeleted text end more than deleted text begin12deleted text end new text beginfive new text endmonths deleted text beginprior to thatdeleted text end new text beginbefore the first of the new text endmonth
in which deleted text beginthedeleted text end new text begina complete new text endapplication is deleted text beginfileddeleted text endnew text begin received by the executive directornew text end, and no benefit
shall accrue beyond the end of the month in which entitlement to such benefits has terminated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 7.

Minnesota Statutes 2018, section 353.32, subdivision 4, is amended to read:


Subd. 4.

Lack, or death, of beneficiary.

If a member or former member dies without
having designated a beneficiary or if the beneficiary should die before making application
for refund, and if there is no surviving spouse, and if the legal representative of such member
or former member does not apply for refund within five years from the date of death of the
member or former member, the accumulated deductions to the member or former member's
credit at the time of death shall be disposed of in the manner provided in section deleted text begin356.631deleted text endnew text begin
356.65, unless subdivision 5 applies
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 8.

Minnesota Statutes 2019 Supplement, section 353.34, subdivision 3, is amended
to read:


Subd. 3.

Deferred annuity; eligibility; computation.

(a) A member who is new text beginpartially
or 100 percent
new text endvested under section 353.01, subdivision 47, when termination of public
service or termination of membership occurs has the option of leaving the new text beginmember's
new text end accumulated deductions in the fund and being entitled to a deferred retirement annuity
commencing at normal retirement age or to a deferred early retirement annuity under section
353.30, subdivision 1a, 1b, 1c, or 5.

(b) The deferred annuity must be computed under section 353.29, subdivision 3, on the
basis of the law in effect on the date of termination of public service or termination of
membership, whichever is deleted text beginearlierdeleted text endnew text begin laternew text end, andnew text begin, if the later of termination of public service or
termination of membership is on or before December 31, 2011, the deferred annuity
new text end must
be augmented as provided in deleted text beginparagraphdeleted text end new text beginparagraphs new text end(c)new text begin to (e)new text end.

(c) The deferred annuity of any former member must be augmented from the first day
of the month following the termination of active service, or July 1, 1971, whichever is later,
to the effective date of retirementnew text begin or, if earlier, December 31, 2018new text end.

(d) For a person who became a public employee before July 1, 2006, and who has a
termination of public service before January 1, 2012, the deferred annuity must be augmented
at the following rate or rates, compounded annually:

(1) five percent until January 1, 1981;

(2) three percent from January 1, 1981, until January 1 of the year following the year in
which the former member attains age 55 or December 31, 2011, whichever is earlier;

(3) five percent from January 1 of the year following the year in which the former member
attains age 55, or December 31, 2011, whichever is earlier;

(4) one percent from January 1, 2012, until December 31, 2018; and

(5) after December 31, 2018, the deferred annuity must not be augmented.

(e) For a person who became a public employee after June 30, 2006, and who has a
termination of public service before January 1, 2012, the deferred annuity must be augmented
at the following rate or rates, compounded annually:

(1) 2.5 percent until December 31, 2011;

(2) one percent from January 1, 2012, until December 31, 2018; and

(3) after December 31, 2018, the deferred annuity must not be augmented.

(f) For a person who has a termination of public service after December 31, 2011, the
deferred annuity must not be augmented.

(g) The retirement annuity or disability benefit of, or the survivor benefit payable on
behalf of, a former member who terminated service before July 1, 1997, or the survivor
benefit payable on behalf of a basic or police and fire member who was receiving disability
benefits before July 1, 1997, which is first payable after June 30, 1997, must be increased
on an actuarial equivalent basis to reflect the change in the investment return actuarial
assumption under section 356.215, subdivision 8, from five percent to six percent under a
calculation procedure and tables adopted by the board and approved by the actuary retained
under section 356.214.

(h) A former member qualified to apply for a deferred retirement annuity may revoke
this option at any time before the commencement of deferred annuity payments by making
application for a refund. The person is entitled to a refund of accumulated member
contributions within 30 days following date of receipt of the application by the executive
director.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 9.

Minnesota Statutes 2019 Supplement, section 353.371, subdivision 1, is amended
to read:


Subdivision 1.

Eligibility.

deleted text begin(a)deleted text end This section applies to a basic or coordinated member of
the general employees retirement plan of the Public Employees Retirement Association
who:

(1) for at least the five years immediately preceding separation under clause (2), was
regularly scheduled to work 1,044 or more hours per year in a position covered by the
general employees retirement plan of the Public Employees Retirement Association not
including positions that are elected offices;

(2) deleted text beginterminatesdeleted text end new text beginhas a termination of new text endmembership as defined under section 353.01,
subdivision 11b
;

(3) at the time of termination under clause (2), was at least age 62 and met the age and
service requirements necessary to receive a retirement annuity from the plan and satisfied
requirements for the commencement of the retirement annuity in the month following
termination;

(4) accepts a phased retirement agreement to continue employment new text beginin the same position
new text end with the same governmental subdivisiondeleted text begin, workingdeleted text end new text beginthat the member held before the date of
the member's termination of membership and to work
new text enda reduced schedule that is both:

(i) a reduction of at least 25 percent from the employee's number of previously regularly
scheduled work hoursnew text begin per pay periodnew text end; and

(ii) 1,044 hours new text beginper year new text endor less in public service; and

(5) is not eligible for participation in the state employee postretirement option program
under section 43A.346.

deleted text begin (b) For purposes of this section, the length of separation requirement and termination
of public service requirement prohibiting return to work agreements under section 353.01,
subdivisions 11a and 28, are not applicable except as specified in subdivision 7, paragraph
(a).
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 10.

Minnesota Statutes 2019 Supplement, section 353.371, subdivision 2, is amended
to read:


Subd. 2.

new text beginTermination and new text endannuity reductionnew text begin requirementsnew text end not
applicable.

new text beginNotwithstanding sections 353.29 and 353.30, an employee covered by a phased
retirement agreement need not have a termination of public service to be eligible for a
retirement annuity.
new text endThe provisions of section 353.37 governing annuities of reemployed
annuitants do not apply to employment under a phased retirement agreement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 11.

Minnesota Statutes 2019 Supplement, section 353.371, is amended by adding a
subdivision to read:


new text begin Subd. 9. new text end

new text begin Termination upon excess hours worked. new text end

new text begin If an employee works more hours
under a phased retirement agreement than is permitted under subdivision 1, paragraph (a),
clause (4), then, effective on the first of the month following the date on which the permitted
number of hours was exceeded:
new text end

new text begin (1) the phased retirement agreement is terminated; and
new text end

new text begin (2) the employee's retirement annuity is suspended until the employee meets the
termination and length of service requirement in section 353.01, subdivisions 11a and 28.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 12.

Minnesota Statutes 2018, section 353.651, subdivision 1, is amended to read:


Subdivision 1.

Age and allowable service requirements.

Upon separation from public
service, any police officer or firefighter member, other than a firefighter covered by section
353.6511, or a police officer covered by section 353.6512, who has attained the age of at
least 55 years and who is new text beginpartially or 100 percent new text endvested under section 353.01, subdivision
47
, is entitled upon application to a retirement annuity, known as the deleted text begin"normal"deleted text end new text beginnormal
new text end retirement annuity.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 13.

Minnesota Statutes 2018, section 353.656, subdivision 1, is amended to read:


Subdivision 1.

Duty disability; computation of benefits.

(a) A member of the police
and fire plan, other than a firefighter covered by section 353.6511, or a police officer covered
by section 353.6512, who is determined to qualify for duty disability as defined in section
353.01, subdivision 41, is entitled to receive disability benefits during the period of such
disability in an amount equal to 60 percent of the average salary as defined in section 353.01,
subdivision 17a
, plus an additional 3.0 percent of that average salary for each year of service
in excess of 20 years.

(b) To be eligible for a benefit under paragraph (a), the member must have:

(1) not met the new text beginage and vesting new text endrequirements for a retirement annuity under section
353.651, subdivision 1; or

(2) met the new text beginage and vesting new text endrequirements under that subdivision, but does not have at
least 20 years of allowable service credit.

(c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a period
of 60 months from the disability benefit accrual date and at the end of that period is subject
to provisions of subdivision 5a.

(d) If the disability under this subdivision occurs before the member has at least five
years of allowable service credit in the police and fire plan, the disability benefit must be
computed on the average salary from which deductions were made for contribution to the
police and fire fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2020.
new text end

Sec. 14.

Minnesota Statutes 2018, section 353.656, subdivision 3, is amended to read:


Subd. 3.

Regular disability benefit.

(a) A member of the police and fire plan, other
than a firefighter covered by section 353.6511, or a police officer covered by section
353.6512, who qualifies for a regular disability benefit as defined in section 353.01,
subdivision 46, is entitled to receive a disability benefit, after filing a valid application, in
an amount equal to 45 percent of the average salary as defined in section 353.01, subdivision
17a.

(b) To be eligible for a benefit under paragraph (a), the member must have at least one
year of allowable service credit and have:

(1) not met the new text beginage and vesting new text endrequirements for a retirement annuity under section
353.651, subdivision 1, or

(2) met the new text beginage and vesting new text endrequirements under that subdivision, but does not have at
least 15 years of allowable service credit.

(c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a period
of 60 months from the disability benefit accrual date and, at the end of that period, is subject
to provisions of subdivision 5a.

(d) For a member who is employed as a full-time firefighter by the Department of Military
Affairs of the state of Minnesota, allowable service as a full-time state Military Affairs
Department firefighter credited by the Minnesota State Retirement System may be used in
meeting the minimum allowable service requirement of this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2020.
new text end

Sec. 15.

Minnesota Statutes 2018, section 353.657, subdivision 1, is amended to read:


Subdivision 1.

Generally.

(a) In the event that a member of the police and fire fund,
other than a firefighter covered by section 353.6511, or a police officer covered by section
353.6512, dies from any cause before retirement or before deleted text beginbecoming disabled anddeleted text end receiving
disability benefits, the association shall grant survivor benefits to a surviving spouse, as
defined in section 353.01, subdivision 20, and to a dependent child or children, as defined
in section 353.01, subdivision 15, except that if the death is not a line of duty death, the
member must be new text beginpartially or 100 percent new text endvested under section 353.01, subdivision 47.

(b) Notwithstanding the definition of surviving spouse, a former spouse of the member,
if any, is entitled to a portion of the monthly surviving spouse benefit if stipulated under
the terms of a marriage dissolution decree filed with the association. If there is no surviving
spouse or child or children, a former spouse may be entitled to a lump-sum refund payment
under section 353.32, subdivision 1, if provided for in a marriage dissolution decree but not
a monthly surviving spouse benefit despite the terms of a marriage dissolution decree filed
with the association.

(c) The spouse and new text begindependent new text endchild or children are entitled to monthly benefits as
provided in subdivisions 2 to 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 16. new text beginPOLICE AND FIRE PLAN; RETROACTIVE CLARIFICATION
RELATING TO DURATION OF A DISABILITY BENEFIT.
new text end

new text begin Minnesota Statutes, section 353.656, subdivision 1, paragraph (c), shall be read as "(c)
The disability benefit must be paid for a period of 60 months from the disability benefit
accrual date and at the end of that period is subject to provisions of subdivision 5a."
new text end

new text begin EFFECTIVE DATE; EXPIRATION. new text end

new text begin This section is effective retroactively from July
1, 2007, and expires December 31, 2019.
new text end

Sec. 17. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, section 353.30, subdivision 4, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

ARTICLE 7

PERA STATEWIDE VOLUNTEER
FIREFIGHTER PLAN ADMINISTRATIVE PROVISIONS

Section 1.

Minnesota Statutes 2018, section 353G.01, is amended by adding a subdivision
to read:


new text begin Subd. 6a. new text end

new text begin Governing body. new text end

new text begin "Governing body" means the governing body of a
municipality or independent nonprofit firefighting corporation or, in the case of a joint
powers entity, the governing bodies of the municipalities associated with the joint powers
entity.
new text end

Sec. 2.

Minnesota Statutes 2018, section 353G.05, subdivision 1, is amended to read:


Subdivision 1.

Coverage.

deleted text beginAnydeleted text end new text begin(a) A relief association or a new text endmunicipality or independent
nonprofit firefighting corporation new text beginaffiliated with a relief association new text endmay elect to have its
volunteer firefighters covered by the lump-sum retirement division or the monthly benefit
retirement division of the retirement plandeleted text begin, whichever appliesdeleted text end.

new text begin (b) A municipality or independent nonprofit firefighting corporation that is not affiliated
with a relief association may elect to have its volunteer firefighters covered by the lump-sum
retirement division of the retirement plan.
new text end

Sec. 3.

Minnesota Statutes 2018, section 353G.05, subdivision 5, is amended to read:


Subd. 5.

Finalization; coverage transfer.

deleted text beginUpon receipt ofdeleted text end new text begin(a) The executive director
shall deliver
new text endthe cost analysis requested under subdivision 2 or 3, new text beginto new text endthe new text beginboard of trustees
of the relief association, if one exists, and the
new text endgoverning body deleted text beginof the municipality or
independent nonprofit firefighting corporation associated with the fire department shall
either approve or disapprove the retirement coverage change
deleted text endnew text begin.
new text end

new text begin (b) The transfer of coverage to the retirement plan is considered approved if,new text end within 120
daysnew text begin of receipt of the cost analysis, the transfer is approved by both (1) the board of trustees
of the relief association, if one exists, and (2) the governing body
new text end. Ifnew text begin eithernew text end the deleted text beginretirement
coverage change is not acted upon
deleted text end new text begingoverning body or the board of trustees of the relief
association does not take action to approve the transfer
new text endwithin 120 daysdeleted text begin, it is deemed to be
disapproved
deleted text endnew text begin of receipt of the cost analysis, the transfer is not approvednew text end.

new text begin (c)new text end If the deleted text beginretirement coverage changedeleted text end new text begintransfer new text endis approved deleted text beginby the applicable governing
body
deleted text end, coverage by the deleted text beginvoluntary statewide volunteer firefighterdeleted text end retirement plan is effective
on the January 1 next following the deleted text beginapprovaldeleted text end datenew text begin of approval by the last governing body
or, if later, the date of approval by the board of trustees of the relief association
new text end.

Sec. 4.

Minnesota Statutes 2018, section 353G.05, is amended by adding a subdivision to
read:


new text begin Subd. 6. new text end

new text begin Joint powers entities. new text end

new text begin If transfer of coverage to the retirement plan is being
requested for volunteer firefighters that provide services to a fire department operated as
or by a joint powers entity, whenever an election or approval by or delivery to the governing
body of a municipality is required under this section, all municipalities that executed the
joint powers agreement must execute the election or approval or receive delivery, unless
the joint powers agreement specifies another process be followed in order for the action of
a joint powers entity to be effective.
new text end

Sec. 5.

Minnesota Statutes 2018, section 353G.09, subdivision 3, is amended to read:


Subd. 3.

Alternative lump-sum pension eligibility and computation.

(a) An active
member of the lump-sum retirement division of the retirement plan is entitled to an alternative
lump-sum service pension from the retirement plan if the person:

(1) has separated from active service with the fire department for at least 30 days;

(2) has attained the age of at least 50 years or the age for receipt of a service pension
under the benefit plan of the applicable former volunteer firefighter relief association as of
the date immediately before the election of the retirement coverage change, whichever is
later;

(3) has completed at least five years of active service with the fire department and at
least five years in total as a member of the applicable former volunteer firefighter relief
association or of the lump-sum retirement division of the retirement plan, but has not rendered
at least five years of good time service credit as a member of the lump-sum retirement
division of the plan; and

(4) applies in a manner prescribed by the executive director for the service pension.

(b) If retirement coverage before statewide retirement plan coverage was provided new text beginto
an active member
new text endby a defined benefit deleted text beginlump-sum retirement plan volunteer firefighterdeleted text end relief
association, new text beginas defined in section 424A.001, subdivision 1b, new text endthe alternative lump-sum service
pension isnew text begin:
new text end

new text begin (1)new text end the service pension deleted text beginamountdeleted text end new text beginlevel new text endspecified in the bylaws of the applicable former
volunteer firefighter relief association deleted text begineitherdeleted text end as of the date immediately before the election
of the retirement coverage change deleted text beginor as of the date immediately before the termination of
firefighting services, whichever is earlier,
deleted text endnew text begin;new text end multiplied by deleted text beginthe total number of
deleted text end

new text begin (2) either fullnew text end years of service new text beginor years and months of service, as specified in the bylaws,
new text end as a member of that volunteer firefighter relief association and as a member of the retirement
plandeleted text begin.deleted text endnew text begin; multiplied by
new text end

new text begin (3) the non-forfeitable percentage of the service pension to which the member is entitled
under subdivision 2.
new text end

new text begin (c)new text end If retirement coverage before statewide retirement plan coverage was provided new text beginto an
active member
new text endby a defined contribution deleted text beginplan volunteer firefighterdeleted text end relief association, new text beginas
defined in section 424A.001, subdivision 1c,
new text endthe alternative lump-sum service pension isdeleted text begin
an amount equal to that portion of
deleted text endnew text begin:
new text end

new text begin (1)new text end the person's account balance deleted text beginthat the person was vested fordeleted text end as of the date immediately
before the deleted text begindate on which statewide retirement plan coverage was first provided to the persondeleted text end
new text begin election of the retirement coverage change; multiplied by
new text end

new text begin (2) the non-forfeitable percentage of the account balance to which the person is entitled
under subdivision 2;
new text endplus

new text begin (3)new text end six percent annual compound interest from deleted text beginthatdeleted text end new text beginthe new text enddate new text beginimmediately before the
election of the retirement coverage change
new text enduntil the date immediately before the date of
retirement.

Sec. 6.

Minnesota Statutes 2018, section 353G.09, is amended by adding a subdivision to
read:


new text begin Subd. 4. new text end

new text begin Deferred service pensions from former volunteer firefighter relief
association.
new text end

new text begin A person who (1) had the status of deferred member with a former volunteer
firefighter relief association as of the date immediately before the election of the retirement
coverage change, and (2) is eligible for a service pension under the former relief association's
bylaws is entitled to receive a service pension from the retirement plan. Eligibility for and
calculation of the service pension are determined under the former relief association's bylaws
as of the date the person terminated firefighting services and under chapter 424A.
new text end

Sec. 7.

Minnesota Statutes 2018, section 353G.11, subdivision 2, is amended to read:


Subd. 2.

Lump-sum retirement division level selection.

deleted text beginAfter the transfer of retirement
coverage to the lump-sum retirement division of the retirement plan, the governing body
or bodies of the entity or entities operating the fire department whose firefighters are covered
by the retirement plan may request
deleted text end A cost estimate from the executive director of an increase
in the service pension level applicable to the active firefighters of the fire departmentnew text begin may
be requested by: (1) the fire chief of a department that has active membership covered by
the lump-sum retirement division; or (2) the governing body operating a fire department
that has active membership covered by the lump-sum retirement division
new text end. Within 120 days
of the receipt of the cost estimate prepared by the executive director using a procedure
certified as accurate by the approved actuary retained by the Public Employees Retirement
Association, the governing body deleted text beginor bodiesdeleted text end may approve the service pension level change,
effective for January 1 of the following calendar year unless the governing body deleted text beginor bodies
specify
deleted text endnew text begin specifiesnew text end in the deleted text beginapproveddeleted text end new text beginapproval new text enddocument an effective date deleted text beginas thedeleted text end new text beginthat is new text endJanuary
1 of the second year following the deleted text beginlevel increasedeleted text end approvalnew text begin datenew text end. If the approval occurs after
April 30, the required municipal contribution for the following calendar year must be
recalculated and the results reported to the deleted text beginmunicipality or municipalitiesdeleted text endnew text begin governing bodynew text end.
If not approved deleted text beginin a timely fashiondeleted text endnew text begin within 120 days of the receipt of the cost estimatenew text end, the
service pension level change is considered to have been disapproved.

Sec. 8.

Minnesota Statutes 2018, section 353G.121, is amended to read:


353G.121 MONTHLY BENEFIT RETIREMENT DIVISION; POST-TRANSFER
BENEFIT PLAN DOCUMENT MODIFICATIONS.

(a) The fire chief of a fire department that has an active membership who are covered
by the monthly benefit retirement division of the deleted text beginstatewide retirementdeleted text end plan may initiate the
process of modifying the retirement benefit plan document under this section.

(b) The modification procedure is initiated when the applicable fire chief files with the
executive director of the Public Employees Retirement Association a written summary of
the desired benefit plan document modification, the proposed benefit plan document
modification language, a written request for the preparation of an actuarial cost estimate
for the proposed benefit plan document modification, and payment of the estimated cost of
the actuarial cost estimate.

(c) Upon receipt of the modification request and related documents, the executive director
shall review the language of the proposed benefit plan document modification and, if a
clarification is needed in the submitted language, shall inform the fire chief of the necessary
clarification. Once the proposed benefit plan document modification language has been
clarified by the fire chief and resubmitted to the executive director, the executive director
shall arrange for the approved actuary retained by the Public Employees Retirement
Association to prepare a benefit plan document modification cost estimate under the
applicable provisions of section 356.215 and of the standards for actuarial work adopted
by the Legislative Commission on Pensions and Retirement. Upon completion of the benefit
plan document modification cost estimate, the executive director shall forward the estimate
to the fire chief who requested it and to the chief financial officer of the municipality or
entity with which the fire department is primarily associated.

(d) The fire chief, upon receipt of the cost estimate, shall circulate the cost estimate with
the active firefighters in the fire department and shall take reasonable steps to provide the
estimate results to any affected retired members of the fire department and their beneficiaries.
The chief financial officer of the municipality or entity associated with the fire department
shall present the proposed modification language and the cost estimate to the governing
body of the municipality or entity for its consideration at a public hearing held for that
purpose.

(e) If the governing body of the municipality or entity approves the modification language,
the chief administrative officer of the municipality or entity shall notify the executive director
of the Public Employees Retirement Association of that approval. The benefit plan document
modification is effective on the January 1 next following the date of filing the approval with
the Public Employees Retirement Association deleted text beginand the state auditordeleted text end.

Sec. 9. new text beginREVISOR INSTRUCTION.
new text end

new text begin In Minnesota Statutes, the revisor of statutes shall substitute the term "statewide volunteer
firefighter plan" for "voluntary statewide volunteer firefighter retirement plan" and the term
"statewide volunteer firefighter fund" for "voluntary statewide volunteer firefighter retirement
fund" wherever the terms refer to the retirement plan and fund established under Minnesota
Statutes, chapter 353G.
new text end

Sec. 10. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 9 are effective the day following final enactment.
new text end

ARTICLE 8

TEACHERS RETIREMENT ASSOCIATION ADMINISTRATIVE PROVISIONS

Section 1.

Minnesota Statutes 2018, section 354.05, subdivision 2, is amended to read:


Subd. 2.

Teacher.

(a) "Teacher" means:

(1) a person who renders service as a teacher, supervisor, principal, superintendent,
librarian, nurse, counselor, social worker, therapist, or psychologist in:

(i) a public school of the state other than in Independent School District No. 625;

(ii) a charter school;new text begin or
new text end

deleted text begin (iii) a charitable, penal, or correctional institution of a governmental subdivision; or
deleted text end

deleted text begin (iv)deleted text end new text begin(iii) new text endthe Perpich Center for Arts Education, except that any employee of the Perpich
Center for Arts Education who was covered by the Minnesota State Retirement System
general state employees retirement plan as of July 1, 2018, shall continue to be covered by
that plan and not by the Teachers Retirement Association;

(2) a person who is engaged in educational administration in connection with the state
public school system, whether the position be a public office or as employment;

(3) a person who renders service as a charter school director or chief administrative
officer; provided, however, that if the charter school director or chief administrative officer
is covered by the Public Employees Retirement Association general employees retirement
plan on July 1, 2018, the charter school director or chief administrative officer shall continue
to be covered by that plan and not by the Teachers Retirement Association;

(4) an employee of the Teachers Retirement Association;

(5) a person who renders teaching service on a part-time basis and who also renders
other services for a single employing unit where the teaching service comprises at least 50
percent of the combined employment salary is a member of the association for all services
with the single employing unit or, if less than 50 percent of the combined employment
salary, the executive director determines all of the combined service is covered by the
association; or

(6) a person who is not covered by the plans established under chapter 352D, 354A, or
354B and who is employed by the Board of Trustees of the Minnesota State Colleges and
Universities system in an unclassified position as:

(i) a president, vice-president, or dean;

(ii) a manager or a professional in an academic or an academic support program other
than specified in item (i);

(iii) an administrative or a service support faculty position; or

(iv) a teacher or a research assistant.

(b) "Teacher" does not mean:

(1) a person who works for a school or institution as an independent contractor as defined
by the Internal Revenue Service;

(2) annuitants of the teachers retirement plan who are employed after retirement by an
employing unit that participates in the teachers retirement plan during the course of that
reemployment;

(3) a person who is employed by the University of Minnesota;

(4) a member or an officer of any general governing or managing board or body of an
employing unit that participates in the teachers retirement plan; or

(5) a person employed by Independent School District No. 625 as a teacher as defined
in section 354A.011, subdivision 27.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2018, section 354.05, subdivision 41, is amended to read:


Subd. 41.

Annual base salary.

(a) "Annual base salary" means:

(1) for an independent school district or educational cooperative, the lowest full-time
Bachelor of Arts (BA) base contract salary for the previous fiscal year for that employing
unit;

(2) for a charter school, the lowest starting annual salary for a full-time deleted text beginlicenseddeleted text end teacher
employed during the previous fiscal year for that employing unit; and

(3) for a state agency or professional organization, the lowest starting annual salary for
a full-time Teachers Retirement Association covered position for the previous fiscal year
for that employing unit.

(b) If there is no previous fiscal year data because an employer unit is new and paragraph
(c) does not apply, the annual base salary for the first year of operation will be as provided
in paragraph (a), except that the base contract salary for the current fiscal year, rather than
the previous fiscal year, must be used.

(c) For a new employer unit created as a result of a merger or consolidation, the annual
base salary must be the lowest annual base salary as specified in paragraph (a) for any of
the employer units involved in the merger or consolidation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2018, section 354.44, subdivision 4, is amended to read:


Subd. 4.

Retirement annuity accrual date.

(a) deleted text beginAn annuity payment begins to accrue,
provided that
deleted text end new text beginIf new text endthe new text beginapplicable new text endage and service requirements under deleted text beginsubdivision 1deleted text end new text beginthis section
new text end are satisfied, deleted text beginafter the termination of teaching service, or after the application for retirement
has been filed with the executive director,
deleted text end new text beginan annuity payment begins to accrue new text endas follows:

(1) on the day after the termination of teaching service;

(2) on the day of receipt of application if the application is filed with the executive
director after the six-month period that occurs immediately following the termination of
teaching service;new text begin or
new text end

(3) on July 1 for all school principals and other administrators who receive a full annual
contract salary during the fiscal year for performance of a full year's contract dutiesdeleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (4) if an application for retirement is filed with the executive director during the six-month
period that occurs immediately following the termination of teaching service, the annuity
may begin to accrue as if the application for retirement had been filed with the board on the
date teaching service terminated.
deleted text end

(b) A member, or a person authorized to act on behalf of the member, may specify a
different date of retirement from that determined in paragraph (a), as follows:

(1) if the application is filed on or before the date of termination of teaching service, the
accrual date deleted text beginmay be a date nodeleted text end new text beginmust not be new text endearlier than the day after the termination of
teaching service and no later than six months after the termination date; or

(2) if the application is filed during the six-month period that occurs immediately
following the termination of teaching service, the deleted text beginaccrual datedeleted text end new text beginannuity new text endmay begin to accrue
retroactively, but no earlier than the day after new text begintermination of new text endteaching service deleted text beginterminateddeleted text end
and no later than six months after the termination date.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2018, section 354.44, subdivision 6, is amended to read:


Subd. 6.

Computation of formula program retirement annuity.

(a) The formula
retirement annuity must be computed in accordance with the applicable provisions of the
formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
section 354.05, subdivision 13a, for the period of the member's formula service credit.

(b) This paragraph, in conjunction with paragraph (c), applies to a person who first
became a member of the association or a member of a pension fund listed in section 356.30,
subdivision 3
, before July 1, 1989, unless paragraph (d), in conjunction with paragraph (e),
produces a higher annuity amount, in which case paragraph (d) applies. The average salary
as defined in section 354.05, subdivision 13a, multiplied by the following percentages per
year of formula service credit shall determine the amount of the annuity to which the member
qualifying therefor is entitled for service rendered before July 1, 2006:

Period
Coordinated Member
Basic Member
Each year of service
during first ten
1.2 percent per year
2.2 percent per year
Each year of service
thereafter
1.7 percent per year
2.7 percent per year

For service rendered on or after July 1, 2006, by a member other than a member who
was a member of the former Duluth Teachers Retirement Fund Association between January
1, 2006, and June 30, 2015, and for service rendered on or after July 1, 2013, by a member
who was a member of the former Duluth Teachers Retirement Fund Association between
January 1, 2013, and June 30, 2015, the average salary as defined in section 354.05,
subdivision 13a
, multiplied by the following percentages per year of service credit, determines
the amount the annuity to which the member qualifying therefor is entitled:

Period
Coordinated Member
Basic Member
Each year of service
during first ten
1.4 percent per year
2.2 percent per year
Each year of service after
ten years of service
1.9 percent per year
2.7 percent per year

(c)(1) This paragraph applies only to a person who first became a member of the
association or a member of a pension fund listed in section 356.30, subdivision 3, before
July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in conjunction
with this paragraph than when calculated under paragraph (d), in conjunction with paragraph
(e).

(2) Where any member retires prior to normal retirement age under a formula annuity,
the member shall be paid a retirement annuity in an amount equal to the normal annuity
provided in paragraph (b) reduced by one-quarter of one percent for each month that the
member is under normal retirement age at the time of retirement except that for any member
who has 30 or more years of allowable service credit, the reduction shall be applied only
for each month that the member is under age 62.

(3) Any member whose attained age plus credited allowable service totals 90 years is
entitled, upon application, to a retirement annuity in an amount equal to the normal annuity
provided in paragraph (b), without any reduction by reason of early retirement.

(d) This paragraph applies to a member who has become at least 55 years old and first
became a member of the association after June 30, 1989, and to any other member who has
become at least 55 years old and whose annuity amount when calculated under this paragraph
and in conjunction with paragraph (e), is higher than it is when calculated under paragraph
(b), in conjunction with paragraph (c).

(1) For a basic member, the average salary, as defined in section 354.05, subdivision
13a
, multiplied by 2.7 percent for each year of service for a basic member determines the
amount of the retirement annuity to which the basic member is entitled. The annuity of a
basic member who was a member of the former Minneapolis Teachers Retirement Fund
Association as of June 30, 2006, must be determined according to the annuity formula under
the articles of incorporation of the former Minneapolis Teachers Retirement Fund Association
in effect as of that date.

(2) For a coordinated member, the average salary, as defined in section 354.05,
subdivision 13a
, multiplied by 1.7 percent for each year of service rendered before July 1,
2006, and by 1.9 percent for each year of service rendered on or after July 1, 2006, for a
member other than a member who was a member of the former Duluth Teachers Retirement
Fund Association between January 1, 2006, and June 30, 2015, and by 1.9 percent for each
year of service rendered on or after July 1, 2013, for a member of the former Duluth Teachers
Retirement Fund Association between January 1, 2013, and June 30, 2015, determines the
amount of the retirement annuity to which the coordinated member is entitled.

deleted text begin (e) This paragraph applies to a member who has become at least 55 years old and first
becomes a member of the association after June 30, 1989, and to any other member who
has become at least 55 years old and whose annuity is higher when calculated under
paragraph (d) in conjunction with this paragraph than when calculated under paragraph (b),
in conjunction with paragraph (c). An employee who retires under the formula annuity
before the normal retirement age shall be paid the normal annuity provided in paragraph
(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that would
be payable to the employee if the employee deferred receipt of the annuity and the annuity
amount were augmented at an annual rate of three percent compounded annually from the
day the annuity begins to accrue until the normal retirement age if the employee became
an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee
becomes an employee after June 30, 2006. Except in regards to section 354.46, this paragraph
remains in effect until June 30, 2015.
deleted text end

deleted text begin (f) Until June 30, 2019, this paragraph applies to a member who has become at least 55
years old and first becomes a member of the association after June 30, 1989, and to any
other member who has become at least 55 years old and whose annuity is higher when
calculated under paragraph (d) in conjunction with this paragraph than when calculated
under paragraph (b) in conjunction with paragraph (c). An employee who retires under the
formula annuity before the normal retirement age is entitled to receive the normal annuity
provided in paragraph (d), reduced as described in clause (1) or (2), as applicable.
deleted text end

deleted text begin (1) For a member who is at least age 62 and has at least 30 years of service, the annuity
shall be reduced by an early reduction factor of six percent for each year that the member's
age of retirement precedes normal retirement age. The resulting reduced annuity shall be
further adjusted to take into account the increase in the monthly amount that would have
occurred had the member retired early and deferred receipt of the annuity until normal
retirement age and the annuity was augmented during the deferral period at 2.5 percent, if
the member commenced employment after June 30, 2006, or at three percent, if the member
commenced employment before July 1, 2006, compounded annually.
deleted text end

deleted text begin (2) For a member who has not attained age 62 or has fewer than 30 years of service, the
annuity shall be reduced for each year that the member's age of retirement precedes the
normal retirement age by the following early reduction factors:
deleted text end

deleted text begin (i) for the period during which the member is age 55 through age 59, the factor is four
percent; and
deleted text end

deleted text begin (ii) for the period during which the member is age 60 but not yet normal retirement age,
the factor is seven percent.
deleted text end

deleted text begin The resulting reduced annuity shall be further adjusted to take into account the increase
in the monthly amount that would have occurred had the member retired early and deferred
receipt of the annuity until normal retirement age and the annuity was augmented during
the deferral period at 2.5 percent, if the member commenced employment after June 30,
2006, or at three percent, if the member commenced employment before July 1, 2006,
compounded annually.
deleted text end

deleted text begin (g) For members who retire on or after July 1, 2019,deleted text end new text begin(e) new text endThis paragraph applies to a
person who has become at least 55 years old and first becomes a member of the association
after June 30, 1989, and to any other member who has become at least 55 years old and
whose annuity is higher when calculated under paragraph (d) in conjunction with this
paragraph than when calculated under paragraph (b) in conjunction with paragraph (c). An
employee who retires under the formula annuity before the normal retirement age is entitled
to receive the normal annuity provided in paragraph (d), reduced as described in clause (1)
or (2), as applicable.

(1) For a member who is at least age 62 and has at least 30 years of service, the annuity
shall be reduced by an early reduction factor of six percent for each year that the member's
age of retirement precedes the normal retirement age. The resulting reduced annuity shall
be further adjusted to take into account the increase in the monthly amount that would have
occurred had the member retired early and deferred receipt of the annuity until normal
retirement age and the annuity was augmented during the deferral period at 2.5 percent, if
the member commenced employment after June 30, 2006, or at three percent, if the member
commenced employment before July 1, 2006, compounded annually.

(2) For a member who has not attained age 62 or has fewer than 30 years of service, the
annuity shall be reduced for each year that the member's age of retirement precedes normal
retirement age by the following early reduction factors:

(i) for the period during which the member is age 55 through age deleted text begin59deleted text endnew text begin 58new text end, the factor is
four percent; and

(ii) for the period during which the member is new text beginat least new text endage deleted text begin60deleted text endnew text begin 59new text end but not yet normal
retirement age, the factor is seven percent.

The resulting annuity shall be further adjusted to take into account the increase in the
monthly amount that would have occurred had the member retired early and deferred receipt
of the annuity until normal retirement age and the annuity was augmented during the deferral
period at the applicable annual rate, compounded annually. The applicable annual rate is
the rate in effect for the month that includes the member's effective date of retirement and
shall be considered as fixed for the member for the period until the member reaches normal
retirement age. The applicable annual rate for June 2019 is 2.5 percent, if the member
commenced employment after June 30, 2006, or three percent, if the member commenced
employment before July 1, 2006, compounded annually, and decreases each month beginning
July 2019 in equal monthly increments over the five-year period that begins July 1, 2019,
and ends June 30, 2024, to zero percent effective for July 2024 and thereafter.

After June 30, 2024, the reduced annuity commencing before normal retirement age
under this clause shall not take into account any augmentation.

deleted text begin (h) After June 30, 2015, and before July 1, 2019, for a person who would have a reduced
retirement annuity under either paragraph (e) or (f) if they were applicable, the employee
is entitled to receive a reduced annuity which must be calculated using a blended reduction
factor augmented monthly by 1/60 of the difference between the reduction required under
paragraph (e) and the reduction required under paragraph (f).
deleted text end

deleted text begin (i)deleted text end new text begin(f) new text endNo retirement annuity is payable to a former employee with a salary that exceeds
95 percent of the governor's salary unless and until the salary figures used in computing the
highest five successive years average salary under paragraph (a) have been audited by the
Teachers Retirement Association and determined by the executive director to comply with
the requirements and limitations of section 354.05, subdivisions 35 and 35a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
the amendment to paragraph (g), clause (2), is effective retroactively from June 30, 2018.
new text end

Sec. 5.

Minnesota Statutes 2018, section 354.46, subdivision 2, is amended to read:


Subd. 2.

Surviving spouse survivor coverage.

(a) If the active or deferred member was
at least age 55 and had credit for at least three years of allowable service on the date of
death, the surviving spouse is entitled to the second portion of a 100 percent joint and
survivor annuity specified under section 354.45, based on the age of the active or deferred
member at the time of death and the age of the surviving spouse at the time the benefit
accrues.

(b) If the active or deferred member was under age 55 and had credit for at least 30 years
of allowable service on the date of death, the surviving spouse may elect to receive the
second portion of a 100 percent joint and survivor annuity based on the age of the active or
deferred member on the date of death and the age of the surviving spouse at the time the
benefit accrues. If section 354.44, subdivision 6, applies, the annuity is payable using the
full early retirement reduction under section 354.44, subdivision 6, new text beginparagraph (c), new text endclause
deleted text begin (3)(ii)deleted text endnew text begin (2)new text end, to age 55 and one-half of the early retirement reduction from age 55 to the age
payment begins.

(c) If the active or deferred member was under age 55 and had credit for at least three
years of allowable service on the date of death, but did not yet qualify for retirement, the
surviving spouse may elect to receive the second portion of a 100 percent joint and survivor
annuity based on the age of the active or deferred member at the time of death and the age
of the surviving spouse at the time the benefit accrues. If section 354.44, subdivision 6,
applies, the annuity is calculated using the full early retirement reduction under section
354.44, subdivision 6, to age 55 and one-half of the early retirement reduction from age 55
to the age the annuity begins.

(d) The surviving spouse eligible for surviving spouse benefits under this subdivision
may apply for the annuity any time after the member's death. The benefit may not begin to
accrue more than six months before the date the application is filed with the executive
director and may not accrue before the member's death. The benefit is payable for life. Any
benefit under this subdivision is in lieu of benefits under subdivision 1, if applicable, and
in lieu of a refund of accumulated member contributions under section 354.47, subdivision
1
.

(e) For purposes of this subdivision, a designated beneficiary must be a former spouse
or a biological or adopted child of the member.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2018, section 354.49, subdivision 2, is amended to read:


Subd. 2.

Calculation.

(a) Except as provided in section 354.44, subdivision 1, any person
who ceases to be a member by reason of termination of teaching service, is entitled to receive
a refund in an amount equal to the accumulated deductions credited to the account plus
interest compounded annually using the following interest rates:

(1) before July 1, 1957, no interest accrues;

(2) July 1, 1957, to June 30, 2011, six percent;

(3) July 1, 2011, to June 30, 2018, four percent; and

(4) after June 30, 2018, three percent.

For the purpose of this subdivision, interest must be computed on fiscal year end balances
deleted text begin todeleted text end new text beginthrough new text endthe deleted text beginfirstdeleted text endnew text begin lastnew text end day of the month new text beginprior to the month new text endin which the refund is issued.

(b) If the person has received permanent disability payments under section 354.48, the
refund amount must be reduced by the amount of those payments.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2018, section 354.543, subdivision 3, is amended to read:


Subd. 3.

Service credit grant.

Allowable and formula service credit for the purchase
period must be granted by the Teachers Retirement Association to the purchasing teacher
upon receipt of the purchase payment amount. Payment must be made before the teacher's
termination of teaching service.new text begin Purchasing allowable and formula service credit under this
section does not change the date the teacher first became a member of the association for
the purpose of computing an annuity under section 354.44, subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8. new text beginRETROACTIVE CLARIFICATION RELATING TO THE EARLY
RETIREMENT REDUCTION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 354.44, subdivision 6, paragraph (f), the
references in Minnesota Statutes, section 354.44, subdivision 6, paragraph (f), to "age 59"
shall be read as "age 58" and to "age 60" shall be read as "at least age 59."
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2013, to the
day of enactment.
new text end

Sec. 9. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, section 354.55, subdivision 10, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 9

SESSION LAW FOR ONE PERSON

Section 1. new text beginCREDIT FOR SERVICE IN PERA POLICE AND FIRE PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Service credit purchase. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
353.27, subdivision 12, an eligible person described in paragraph (b) is entitled to purchase
allowable service in the public employees police and fire retirement plan under Minnesota
Statutes, sections 353.63 to 353.68, for the period described in paragraph (b), clause (3),
upon making the payment described in subdivision 2 to the public employees police and
fire fund.
new text end

new text begin (b) An eligible person is a person who:
new text end

new text begin (1) was hired by the city of Maplewood as a casual part-time firefighter, firefighter/EMT,
or firefighter/paramedic after February 14, 2011, the effective date of resolutions approved
by the city council of the city of Maplewood requesting coverage by the public employees
police and fire retirement plan for casual part-time firefighters, as permitted by Minnesota
Statutes, section 353.64, subdivision 2;
new text end

new text begin (2) received salary in excess of the monthly threshold then in effect under Minnesota
Statutes, section 353.01, subdivision 2b, paragraph (a), clause (1), so was not excluded from
coverage by the public employees police and fire retirement plan under this provision or
any other provision of Minnesota Statutes, section 353.01, subdivision 2b;
new text end

new text begin (3) received salary for a period of service for the city of Maplewood from which the city
of Maplewood failed to deduct employee contributions as required by Minnesota Statutes,
section 353.65, subdivision 2;
new text end

new text begin (4) has not accepted payment from the city of Maplewood in lieu of service credit under
the public employees police and fire retirement plan for the period described in clause (3);
and
new text end

new text begin (5) no later than December 31, 2018, has made a request to the executive director of the
Public Employees Retirement Association to purchase allowable service pursuant to this
section for the period of service described in clause (3).
new text end

new text begin (c) Upon receiving the payment described in subdivision 2, the executive director shall
credit the eligible person with allowable service for the period of service described in
paragraph (b), clause (3). The allowable service credit purchased under this section shall
not be used for the purpose of determining a disability benefit under Minnesota Statutes,
section 353.656.
new text end

new text begin Subd. 2. new text end

new text begin Payment by eligible person. new text end

new text begin If the eligible person elects to purchase allowable
service credit as described in subdivision 1, the eligible person shall pay to the public
employees police and fire fund an amount equal to the total amount of the employee
contributions that the eligible person would have made to the public employees police and
fire fund based on the eligible person's total salary for the period of service described in
subdivision 1, paragraph (b), clause (3), plus interest, compounded annually, at the applicable
annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision 3, from the
end of the year in which the contributions would have been made to the date on which the
payment is made. The amount of the required payment shall be determined by the executive
director of the Public Employees Retirement Association, who shall notify the eligible
person regarding the amount and the basis for determining the amount. Payment must be
made by the eligible person in a lump sum within 90 days of the effective date of this
subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Payment by city of Maplewood. new text end

new text begin Upon payment by the eligible person of the
amount required by subdivision 2, the city of Maplewood shall pay to the public employees
police and fire fund an amount equal to the total amount of the employer contributions that
would have been made to the public employees police and fire fund based on the eligible
person's total salary for the period of service described in subdivision 1, paragraph (b),
clause (3), plus interest, compounded annually, at the applicable annual rate or rates specified
in Minnesota Statutes, section 356.59, subdivision 3, from the end of the year in which the
contributions would have been made to the date on which the payment is made. The executive
director shall notify the city of Maplewood regarding the amount and the basis for
determining the amount. The payment shall be made within 60 days following receipt by
the public employees police and fire fund of the eligible person's payment under subdivision
2.
new text end

new text begin Subd. 4. new text end

new text begin Collection of unpaid amounts. new text end

new text begin If the city of Maplewood fails to make all or
any portion of the payment required by subdivision 3, the executive director of the Public
Employees Retirement Association shall follow the procedures in Minnesota Statutes,
section 353.28, subdivision 6, to collect the amount not paid.
new text end

new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end

new text begin Subdivisions 1, 2, and 4 are effective
the day following final enactment. Subdivision 3 is effective the day after the governing
body of the city of Maplewood and its chief clerical officer timely complete their compliance
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

ARTICLE 10

VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS
MAXIMUM LUMP-SUM PENSION AMOUNT INCREASE

Section 1.

Minnesota Statutes 2018, section 424A.02, subdivision 3, is amended to read:


Subd. 3.

Flexible service pension maximums.

(a) Annually on or before August 1 as
part of the certification of the financial requirements and minimum municipal obligation
determined under section 424A.092, subdivision 4, or 424A.093, subdivision 5, as applicable,
the secretary or some other official of the relief association designated in the bylaws of each
defined benefit relief association shall calculate and certify to the governing body of the
applicable municipality the average amount of available financing per active covered
firefighter for the most recent three-year period. The amount of available financing includes
any amounts of fire state aid and police and firefighter retirement supplemental state aid
received or receivable by the relief association, any amounts of municipal contributions to
the relief association raised from levies on real estate or from other available revenue sources
exclusive of fire state aid, and one-tenth of the amount of assets in excess of the accrued
liabilities of the relief association calculated under section 424A.092, subdivision 2;
424A.093, subdivisions 2 and 4; or 424A.094, subdivision 2, if any.

(b) The maximum service pension which the defined benefit relief association has
authority to provide for in its bylaws for payment to a member retiring after the calculation
date when the minimum age and service requirements specified in subdivision 1 are met
must be determined using the table in paragraph (c) or (d), whichever applies.

(c) For a defined benefit relief association where the governing bylaws provide for a
monthly service pension to a retiring member, the maximum monthly service pension amount
per month for each year of service credited that may be provided for in the bylaws is the
greater of the service pension amount provided for in the bylaws on the date of the calculation
of the average amount of the available financing per active covered firefighter or the
maximum service pension figure corresponding to the average amount of available financing
per active covered firefighter:

Minimum Average Amount of Available
Financing per Firefighter
Maximum Service Pension Amount
Payable per Month for Each Year of
Service
$ ...
$ .25
41
.50
81
1.00
122
1.50
162
2.00
203
2.50
243
3.00
284
3.50
324
4.00
365
4.50
405
5.00
486
6.00
567
7.00
648
8.00
729
9.00
810
10.00
891
11.00
972
12.00
1053
13.00
1134
14.00
1215
15.00
1296
16.00
1377
17.00
1458
18.00
1539
19.00
1620
20.00
1701
21.00
1782
22.00
1823
22.50
1863
23.00
1944
24.00
2025
25.00
2106
26.00
2187
27.00
2268
28.00
2349
29.00
2430
30.00
2511
31.00
2592
32.00
2673
33.00
2754
34.00
2834
35.00
2916
36.00
2997
37.00
3078
38.00
3159
39.00
3240
40.00
3321
41.00
3402
42.00
3483
43.00
3564
44.00
3645
45.00
3726
46.00
3807
47.00
3888
48.00
3969
49.00
4050
50.00
4131
51.00
4212
52.00
4293
53.00
4374
54.00
4455
55.00
4536
56.00
4617
57.00
4698
58.00
4779
59.00
4860
60.00
4941
61.00
5022
62.00
5103
63.00
5184
64.00
5265
65.00
5346
66.00
5427
67.00
5508
68.00
5589
69.00
5670
70.00
5751
71.00
5832
72.00
5913
73.00
5994
74.00
6075
75.00
6156
76.00
6237
77.00
6318
78.00
6399
79.00
6480
80.00
6561
81.00
6642
82.00
6723
83.00
6804
84.00
6885
85.00
6966
86.00
7047
87.00
7128
88.00
7209
89.00
7290
90.00
7371
91.00
7452
92.00
7533
93.00
7614
94.00
7695
95.00
7776
96.00
7857
97.00
7938
98.00
8019
99.00
8100
100.00
any amount in excess of
8100
100.00

(d) For a defined benefit relief association in which the governing bylaws provide for a
lump-sum service pension to a retiring member, the maximum lump-sum service pension
amount for each year of service credited that may be provided for in the bylaws is the greater
of the service pension amount provided for in the bylaws on the date of the calculation of
the average amount of the available financing per active covered firefighter or the maximum
service pension figure corresponding to the average amount of available financing per active
covered firefighter for the applicable specified period:

Minimum Average Amount of Available
Financing per Firefighter
Maximum Lump-Sum Service Pension
Amount Payable for Each Year of Service
$ ...
$ 10
11
20
16
30
23
40
27
50
32
60
43
80
54
100
65
120
77
140
86
160
97
180
108
200
131
240
151
280
173
320
194
360
216
400
239
440
259
480
281
520
302
560
324
600
347
640
367
680
389
720
410
760
432
800
486
900
540
1000
594
1100
648
1200
702
1300
756
1400
810
1500
864
1600
918
1700
972
1800
1026
1900
1080
2000
1134
2100
1188
2200
1242
2300
1296
2400
1350
2500
1404
2600
1458
2700
1512
2800
1566
2900
1620
3000
1672
3100
1726
3200
1753
3250
1780
3300
1820
3375
1834
3400
1888
3500
1942
3600
1996
3700
2023
3750
2050
3800
2104
3900
2158
4000
2212
4100
2265
4200
2319
4300
2373
4400
2427
4500
2481
4600
2535
4700
2589
4800
2643
4900
2697
5000
2751
5100
2805
5200
2859
5300
2913
5400
2967
5500
3021
5600
3075
5700
3129
5800
3183
5900
3237
6000
3291
6100
3345
6200
3399
6300
3453
6400
3507
6500
3561
6600
3615
6700
3669
6800
3723
6900
3777
7000
3831
7100
3885
7200
3939
7300
3993
7400
4047
7500
4101
7600
4155
7700
4209
7800
4263
7900
4317
8000
4371
8100
4425
8200
4479
8300
4533
8400
4587
8500
4641
8600
4695
8700
4749
8800
4803
8900
4857
9000
4911
9100
4965
9200
5019
9300
5073
9400
5127
9500
5181
9600
5235
9700
5289
9800
5343
9900
5397
10,000
new text begin 5451
new text end
new text begin 10,100
new text end
new text begin 5505
new text end
new text begin 10,200
new text end
new text begin 5559
new text end
new text begin 10,300
new text end
new text begin 5613
new text end
new text begin 10,400
new text end
new text begin 5667
new text end
new text begin 10,500
new text end
new text begin 5721
new text end
new text begin 10,600
new text end
new text begin 5775
new text end
new text begin 10,700
new text end
new text begin 5829
new text end
new text begin 10,800
new text end
new text begin 5883
new text end
new text begin 10,900
new text end
new text begin 5937
new text end
new text begin 11,000
new text end
new text begin 5991
new text end
new text begin 11,100
new text end
new text begin 6045
new text end
new text begin 11,200
new text end
new text begin 6099
new text end
new text begin 11,300
new text end
new text begin 6153
new text end
new text begin 11,400
new text end
new text begin 6207
new text end
new text begin 11,500
new text end
new text begin 6261
new text end
new text begin 11,600
new text end
new text begin 6315
new text end
new text begin 11,700
new text end
new text begin 6369
new text end
new text begin 11,800
new text end
new text begin 6423
new text end
new text begin 11,900
new text end
new text begin 6477
new text end
new text begin 12,000
new text end
new text begin 6531
new text end
new text begin 12,100
new text end
new text begin 6585
new text end
new text begin 12,200
new text end
new text begin 6639
new text end
new text begin 12,300
new text end
new text begin 6693
new text end
new text begin 12,400
new text end
new text begin 6747
new text end
new text begin 12,500
new text end
new text begin 6801
new text end
new text begin 12,600
new text end
new text begin 6855
new text end
new text begin 12,700
new text end
new text begin 6909
new text end
new text begin 12,800
new text end
new text begin 6963
new text end
new text begin 12,900
new text end
new text begin 7017
new text end
new text begin 13,000
new text end
new text begin 7071
new text end
new text begin 13,100
new text end
new text begin 7125
new text end
new text begin 13,200
new text end
new text begin 7179
new text end
new text begin 13,300
new text end
new text begin 7233
new text end
new text begin 13,400
new text end
new text begin 7287
new text end
new text begin 13,500
new text end
new text begin 7341
new text end
new text begin 13,600
new text end
new text begin 7395
new text end
new text begin 13,700
new text end
new text begin 7449
new text end
new text begin 13,800
new text end
new text begin 7503
new text end
new text begin 13,900
new text end
new text begin 7557
new text end
new text begin 14,000
new text end
new text begin 7611
new text end
new text begin 14,100
new text end
new text begin 7665
new text end
new text begin 14,200
new text end
new text begin 7719
new text end
new text begin 14,300
new text end
new text begin 7773
new text end
new text begin 14,400
new text end
new text begin 7827
new text end
new text begin 14,500
new text end
new text begin 7881
new text end
new text begin 14,600
new text end
new text begin 7935
new text end
new text begin 14,700
new text end
new text begin 7989
new text end
new text begin 14,800
new text end
new text begin 8043
new text end
new text begin 14,900
new text end
new text begin 8097
new text end
new text begin 15,000
new text end
any amount in excess of
deleted text begin 5397 deleted text end new text begin
8097
new text end
deleted text begin 10,000 deleted text end new text begin
15,000
new text end

(e) For a defined benefit relief association in which the governing bylaws provide for a
monthly benefit service pension as an alternative form of service pension payment to a
lump-sum service pension, the maximum service pension amount for each pension payment
type must be determined using the applicable table contained in this subdivision.

(f) If a defined benefit relief association establishes a service pension in compliance
with the applicable maximum contained in paragraph (c) or (d) and the minimum average
amount of available financing per active covered firefighter is subsequently reduced because
of a reduction in fire state aid or because of an increase in the number of active firefighters,
the relief association may continue to provide the prior service pension amount specified
in its bylaws, but may not increase the service pension amount until the minimum average
amount of available financing per firefighter under the table in paragraph (c) or (d), whichever
applies, permits.

(g) No defined benefit relief association is authorized to provide a service pension in an
amount greater than the largest applicable flexible service pension maximum amount even
if the amount of available financing per firefighter is greater than the financing amount
associated with the largest applicable flexible service pension maximum.

(h) The method of calculating service pensions must be applied uniformly for all years
of active service. Credit must be given for all years of active service except for caps on
service credit if so provided in the bylaws of the relief association.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end

Sec. 2. new text beginREPEALER.
new text end

new text begin Laws 2018, chapter 211, article 14, section 29, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end

ARTICLE 11

VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS
ALLOCATION OF FIRE STATE AID

Section 1.

Minnesota Statutes 2019 Supplement, section 477B.04, subdivision 3, is amended
to read:


Subd. 3.

Deposit of state aid.

(a) If the municipality or the independent nonprofit
firefighting corporation is covered by the voluntary statewide volunteer firefighter retirement
plan under chapter 353G, the executive director of the Public Employees Retirement
Association must credit the fire state aid against future municipal contribution requirements
under section 353G.08 and must notify the municipality or the independent nonprofit
firefighting corporation of the fire state aid so credited at least annually.

(b) If new text begin(1) new text endthe municipality or the independent nonprofit firefighting corporation is not
covered by the voluntary statewide volunteer firefighter retirement plandeleted text begin,deleted text end new text beginand is affiliated
with a duly incorporated firefighters relief association, (2) the relief association has filed a
financial report with the municipality pursuant to section 424A.014, subdivision 1 or 2,
whichever applies, and (3) there is not an aid allocation agreement under section 477B.042
in effect, then
new text endthe treasurer of the municipality must, within 30 days after receipt, transmit
the fire state aid to the treasurer of the deleted text beginduly incorporated firefighters' relief association if
there is one organized and the association has filed a financial report with the municipality
pursuant to section 424A.014, subdivision 1 or 2, whichever applies.
deleted text endnew text begin relief association. If
clauses (1) and (2) are satisfied and there is an aid allocation agreement under section
477B.042 in effect, then fire state aid must be transmitted as described in that section.
new text end If
the relief association has not filed a financial report with the municipality, new text beginthen, regardless
of whether an aid allocation agreement is in effect,
new text endthe treasurer of the municipality must
delay transmission of the fire state aid to the relief association until the complete financial
report is filed.

(c) The treasurer of the municipality must deposit the fire state aid money in the municipal
treasury if (1) the municipality or independent nonprofit firefighting corporation is not
covered by the voluntary statewide volunteer firefighter retirement plan, (2) there is no
relief association organized, (3) the association has dissolved, or (4) the association has
been removed as trustees of state aid. The money may be disbursed from the municipal
treasury only for the purposes and in the manner set forth in section 424A.08 or for the
payment of the employer contribution requirement with respect to firefighters covered by
the public employees police and fire retirement plan under section 353.65, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2021 and thereafter.
new text end

Sec. 2.

new text begin [477B.042] ALLOCATION OF FIRE STATE AID FOR RELIEF
ASSOCIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin (a) This section applies to fire state aid payable each year
under section 477B.04, subdivision 3, paragraph (b), if, during the prior year, the municipality
or independent nonprofit firefighting corporation:
new text end

new text begin (1) employs one or more volunteer firefighters covered by the relief association affiliated
with the municipality or independent nonprofit firefighting corporation under chapter 424A;
and
new text end

new text begin (2) contributes on behalf of one or more firefighters to the public employees police and
fire retirement plan under chapter 353.
new text end

new text begin (b) This section does not apply to police and firefighter supplemental state aid under
section 423A.022.
new text end

new text begin Subd. 2. new text end

new text begin Allocation of fire state aid. new text end

new text begin (a) The municipality or independent nonprofit
firefighting corporation and the affiliated relief association may agree to allocate fire state
aid between the relief association and the public employees police and fire retirement plan
by entering into an aid allocation agreement described in subdivision 3.
new text end

new text begin (b) If an aid allocation agreement has been filed with the state auditor and is in effect,
then within 30 days of receipt of the fire state aid the treasurer of the municipality must
transmit to the relief association the amount of the fire state aid as determined in the aid
allocation agreement. If a municipality receives fire state aid on behalf of an independent
nonprofit firefighting corporation, the municipality must also transmit any remaining fire
state aid to the independent nonprofit firefighting corporation.
new text end

new text begin (c) The fire state aid allocated to the municipality or independent nonprofit firefighting
corporation may only be disbursed for the payment of employer contributions for firefighters
covered by the public employees police and fire retirement plan or for contributions to the
relief association and must be disbursed within 18 months of receipt by the municipality or
independent nonprofit firefighting corporation.
new text end

new text begin Subd. 3. new text end

new text begin Aid allocation agreement. new text end

new text begin (a) An aid allocation agreement is a written
agreement that meets the following requirements:
new text end

new text begin (1) the agreement specifies:
new text end

new text begin (i) the percentage of the fire state aid, a dollar amount, or a formula for determining the
amount of fire state aid that will be transmitted to the relief association annually; and
new text end

new text begin (ii) the period of time covered by the agreement and the date on which the agreement
expires; and
new text end

new text begin (2) the agreement has been signed by:
new text end

new text begin (i) an individual authorized to sign on behalf of the municipality or independent nonprofit
firefighting corporation; and
new text end

new text begin (ii) the president of the relief association or its representative duly appointed for the
purposes of this section.
new text end

new text begin (b) An aid allocation agreement is not effective unless filed with the state auditor under
subdivision 5.
new text end

new text begin Subd. 4. new text end

new text begin Modifying or terminating the aid allocation agreement. new text end

new text begin (a) The parties to
the agreement may modify or terminate the aid allocation agreement, provided that the
modification or termination is in writing and signed by the parties.
new text end

new text begin (b) If the amount of fire state aid paid to a municipality or independent nonprofit
firefighting corporation by the commissioner changes by an amount greater than 50 percent
of the prior year's amount, then the aid allocation agreement may be terminated by either
party to the agreement by providing written notice of termination to the other party.
new text end

new text begin (c) Unless the aid allocation agreement provides otherwise, termination is effective for
the fire state aids payable in the calendar year after notice of termination has been given.
new text end

new text begin Subd. 5. new text end

new text begin Filing requirement and remedy. new text end

new text begin (a) By March 1 of each year in which fire
state aid is to be allocated, the municipality or independent nonprofit firefighting corporation
must file a copy of the aid allocation agreement or modified agreement with the state auditor.
new text end

new text begin (b) If an aid allocation agreement terminates by its own terms or for any other reason,
the municipality or independent nonprofit firefighting corporation must notify the Office
of the State Auditor in writing within 30 days after the termination date.
new text end

new text begin (c) If the municipality or independent nonprofit firefighting corporation fails to file by
the deadline in paragraph (a), fire state aid payments must not be allocated, but must be
transmitted to the relief association until the agreement has been filed. If the state auditor
determines that an aid allocation agreement does not meet the requirements of subdivision
3, any future fire state aid payments must be transmitted to the relief association by the
municipality until the municipality files with the state auditor an aid allocation agreement
that satisfies the requirements under subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2021 and thereafter.
new text end

Sec. 3. new text beginGRANDFATHERING EXISTING AID ALLOCATION AGREEMENTS.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 477B.042, subdivision 3, a written
document is an aid allocation agreement for the purposes of Minnesota Statutes, sections
477B.04, subdivision 3, and 477B.042, and remains effective as an aid allocation agreement
until the document ceases to be effective according to its own terms or is modified, if the
document:
new text end

new text begin (1) determines the amount of fire state aid that will be transmitted by a municipality to
its affiliated fire relief association;
new text end

new text begin (2) is effective under existing law on the day before the effective date of this section;
and
new text end

new text begin (3) is a provision of a relief association's bylaws that was jointly approved by the relief
association and its affiliated municipality or a court-ordered settlement agreement entered
into by a relief association and its affiliated municipality.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4. new text beginCITY OF EAGAN; ALLOCATION OF FIRE STATE AID.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
subdivision have the meanings given them unless the context clearly indicates otherwise.
new text end

new text begin (b) "Agreement" means an agreement or contract between the city of Eagan and the
Eagan Firefighters Relief Association which specifies an amount of money that the city will
contribute to the relief association annually and permits the city to deposit fire state aid in
the city treasury.
new text end

new text begin (c) "Fire state aid" means fire state aid paid to the city of Eagan by the commissioner of
revenue under Minnesota Statutes, section 477B.04, and does not include supplemental aid.
new text end

new text begin (d) "Relief association" means the Eagan Firefighters Relief Association.
new text end

new text begin (e) "Supplemental aid" means police and firefighter retirement supplemental state aid
under Minnesota Statutes, section 423A.022.
new text end

new text begin Subd. 2. new text end

new text begin City of Eagan permitted to allocate. new text end

new text begin (a) Notwithstanding any law to the
contrary, if an agreement is in effect, then for the term of the agreement the city of Eagan
is not required to transmit fire state aid to the relief association except as provided for in
this section. Following receipt from the commissioner of revenue of fire state aid, the city
of Eagan must:
new text end

new text begin (1) disburse fire state aid only as provided in clause (2) or for the payment of the employer
contribution requirement with respect to firefighters covered by the public employees police
and fire retirement plan under Minnesota Statutes, section 353.65; and
new text end

new text begin (2) by the date required under the agreement, transmit to the relief association no less
than the amount required under the agreement.
new text end

new text begin (b) The city of Eagan must transmit any supplemental aid it receives to the relief
association as required under Minnesota Statutes, section 423A.022. Supplemental aid
transmitted to the relief association may be credited against the amount the city is obligated
to pay under the agreement.
new text end

new text begin (c) If any fire state aid is received by the city of Eagan and an agreement in not in effect,
then the fire state aid must be transmitted to the relief association in a manner consistent
with Minnesota Statutes, section 477B.04, and other applicable law.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies retroactively from January 1, 2020.
new text end

Sec. 5. new text beginREPEALER.
new text end

new text begin Laws 1980, chapter 607, article xv, section 13, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 12

VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS
RELIEF ASSOCIATION DISSOLUTION
AND RETIREMENT PLAN TERMINATION

Section 1.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Board of trustees. new text end

new text begin "Board of trustees" means the governing board of a relief
association.
new text end

Sec. 2.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3a. new text end

new text begin Defined benefit plan. new text end

new text begin "Defined benefit plan" means a retirement plan that
provides a retirement benefit that is a lump sum, the amount of which is determined by
multiplying the applicable lump-sum service pension amount under section 424A.02,
subdivision 3, paragraph (d), by years of service, or a monthly pension, the amount of which
is determined by multiplying the applicable monthly pension amount under section 424A.02,
subdivision 3, paragraph (c), by years of service. A defined benefit plan may provide both
a lump sum and a monthly pension.
new text end

Sec. 3.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3b. new text end

new text begin Defined benefit relief association. new text end

new text begin "Defined benefit relief association" means
a relief association that has established and administers a retirement plan that is a defined
benefit plan.
new text end

Sec. 4.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3c. new text end

new text begin Defined contribution plan. new text end

new text begin "Defined contribution plan" means a retirement
plan that provides a retirement benefit based on the member's individual account balance.
new text end

Sec. 5.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3d. new text end

new text begin Defined contribution relief association. new text end

new text begin "Defined contribution relief
association" means a relief association that has established and administers a retirement
plan that is a defined contribution plan.
new text end

Sec. 6.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3e. new text end

new text begin Member. new text end

new text begin (a) "Member" means a person:
new text end

new text begin (1) who is a member of a fire department or independent nonprofit firefighting
corporation;
new text end

new text begin (2) who has been credited with at least one year of service toward a retirement benefit
under the retirement plan of a relief association that is affiliated with the fire department or
independent nonprofit firefighting corporation; and
new text end

new text begin (3) whose retirement benefit under the retirement plan has not yet been distributed in a
lump sum or has not yet begun to be distributed in periodic installments or as a monthly
pension.
new text end

new text begin (b) A member may be an active firefighter, an inactive firefighter, or a former firefighter
who has a benefit under the retirement plan but has not become eligible to receive the benefit.
new text end

Sec. 7.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3f. new text end

new text begin Municipality. new text end

new text begin "Municipality" means a city or township that has established a
fire department with which the relief association is affiliated, a city or township that has
entered into a contract with an independent nonprofit firefighting corporation with which
the relief association is affiliated, or a city or township that has entered into a joint powers
agreement under section 471.59 with one or more cities or townships to operate a fire
department with which the relief association is affiliated. A reference in chapter 424B to
municipality in connection with a power that may be exercised by or a requirement that is
imposed on the municipality means each city or township that is party to a joint powers
agreement, unless the joint powers agreement identifies one city or township with the
authority to act on behalf of the other parties to the agreement or with the responsibility for
fulfilling requirements imposed on the other parties to the agreement.
new text end

Sec. 8.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3g. new text end

new text begin Other benefit recipient. new text end

new text begin "Other benefit recipient" means:
new text end

new text begin (1) a person who is entitled to receive all or a portion of the benefit of a member under
a retirement plan due to the person having one of the following relationships to the member:
new text end

new text begin (i) the member's surviving spouse;
new text end

new text begin (ii) the member's former spouse who is the alternate payee under a state domestic relations
order that meets the requirements of section 414(p) of the Internal Revenue Code or who
is a recipient of a court-ordered distribution of marital property, as provided in section
518.58; or
new text end

new text begin (iii) a nonspousal beneficiary of the member; or
new text end

new text begin (2) the member's estate.
new text end

Sec. 9.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 4a. new text end

new text begin Relief association. new text end

new text begin (a) "Relief association" or "volunteer firefighter relief
association" means a nonprofit corporation incorporated under or governed by chapter 317A
that is a governmental entity that receives and manages public money to provide retirement
benefits for individuals providing the governmental services of firefighting and emergency
first response, is subject to chapter 424A, and is affiliated with:
new text end

new text begin (1) a fire department established by municipal ordinance;
new text end

new text begin (2) an independent nonprofit firefighting corporation incorporated under chapter 317A;
or
new text end

new text begin (3) a fire department operated as or by a joint powers entity.
new text end

new text begin (b) Relief association or volunteer firefighters relief association does not mean the
voluntary statewide volunteer firefighter retirement plan governed by chapter 353G.
new text end

Sec. 10.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision
to read:


new text begin Subd. 5a. new text end

new text begin Required contribution. new text end

new text begin "Required contribution" means a contribution made
by the municipality to the special fund of a relief association in satisfaction of a minimum
municipal obligation required under section 424A.092 or 424A.093.
new text end

Sec. 11.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision
to read:


new text begin Subd. 5b. new text end

new text begin Retiree in pay status. new text end

new text begin "Retiree in pay status" means a former member who
left employment or service as an active firefighter, has reached at least age 50, and is
receiving a monthly pension or periodic installment payments from a retirement plan.
new text end

Sec. 12.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision
to read:


new text begin Subd. 5c. new text end

new text begin Retirement benefit. new text end

new text begin "Retirement benefit" means the benefit to which a member
is entitled under a retirement plan.
new text end

Sec. 13.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision
to read:


new text begin Subd. 5d. new text end

new text begin Retirement plan. new text end

new text begin "Retirement plan" means the defined benefit plan or defined
contribution plan established and administered by a relief association.
new text end

Sec. 14.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Surplus. new text end

new text begin "Surplus" means the amount by which the assets in a defined benefit
plan exceed accrued liabilities.
new text end

Sec. 15.

new text begin [424B.22] RELIEF ASSOCIATION DISSOLUTION AND RETIREMENT
PLAN TERMINATION.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin (a) Notwithstanding any laws to the contrary, this section
applies to:
new text end

new text begin (1) the termination of a retirement plan established and administered by a relief
association, whether or not the relief association is also dissolved or eliminated; and
new text end

new text begin (2) the dissolution of a relief association that is not consolidating with another relief
association under sections 424B.01 to 424B.10.
new text end

new text begin This section does not apply to the dissolution of a relief association or the termination
of a retirement plan that occurs due to the change in retirement coverage from a retirement
plan administered by a relief association to the Public Employees Retirement Association
statewide volunteer firefighter plan under section 353G.06.
new text end

new text begin (b) To terminate a retirement plan, the board of trustees must comply with subdivisions
3, 5 to 11, and, if desired, subdivision 4.
new text end

new text begin (c) To dissolve a relief association, the board of trustees of the relief association must:
new text end

new text begin (1) terminate the retirement plan in accordance with this section;
new text end

new text begin (2) determine all legal obligations of the special and general funds of the relief association,
as required by subdivision 5;
new text end

new text begin (3) take the actions required by subdivision 12; and
new text end

new text begin (4) comply with the requirements governing dissolution of nonprofit corporations under
chapter 317A.
new text end

new text begin (d) A relief association that terminates its retirement plan must liquidate its special fund
as provided in subdivision 8, but need not liquidate its general fund if the relief association
is not being dissolved.
new text end

new text begin Subd. 2. new text end

new text begin Involuntary dissolution and termination. new text end

new text begin (a) A relief association is dissolved
and the retirement plan administered by the relief association is terminated automatically
if:
new text end

new text begin (1) the fire department affiliated with a relief association is dissolved by action of the
governing body of the municipality in which the fire department is located or by the
governing body of the independent nonprofit firefighting corporation, whichever applies;
or
new text end

new text begin (2) the fire department affiliated with a relief association has terminated the employment
or services of all active firefighters covered by the relief association.
new text end

new text begin (b) An involuntary termination of a relief association under this subdivision is effective
on the December 31 that is at least eight months after the date on which the fire department
is dissolved or the termination of employment or services of all active firefighters occurs.
new text end

new text begin (c) The retirement plan administered by a relief association is terminated automatically
if the relief association is dissolved, effective on the date of the dissolution of the relief
association.
new text end

new text begin Subd. 3. new text end

new text begin Retirement plan termination date, full vesting, and forfeitures. new text end

new text begin (a) Unless
subdivision 2 applies, the effective date of the termination of a retirement plan is the effective
date of the dissolution of the relief association or, if the relief association is not being
dissolved, the end of the calendar year in which the employment or services of all active
firefighters has been terminated, unless the board of trustees of the relief association approves
a different termination date.
new text end

new text begin (b) As of the earlier of the retirement plan termination date or the date on which the
employment or services of all active firefighters have been terminated, each member becomes
fully (100 percent) vested in the member's retirement benefit under the retirement plan,
notwithstanding any bylaws or laws to the contrary, except as provided in paragraph (c).
new text end

new text begin (c) If the relief association is a defined contribution relief association, the account of
each member who becomes 100 percent vested under paragraph (b) shall include an allocation
of any forfeiture that is required, under the bylaws of the relief association, to occur on or
as of the end of the calendar year during which the termination of the retirement plan is
effective, if the member is entitled to an allocation of forfeitures under the bylaws. Any
account so forfeited shall not be included in the retirement benefits that become 100 percent
vested under paragraph (b).
new text end

new text begin Subd. 4. new text end

new text begin Benefit increase. new text end

new text begin (a) Notwithstanding section 424A.02, subdivision 10, the
board of trustees of a relief association may increase the benefit amount under a defined
benefit relief association without the consent of the affiliated municipality or independent
nonprofit firefighting corporation, as provided in this subdivision.
new text end

new text begin (b) If the retirement plan being terminated is a defined benefit plan, the board of trustees
may approve an amendment to the bylaws of the relief association to increase the lump-sum
or monthly pension amount or both the lump and monthly pension amount, if the relief
association offers both, up to 125 percent of the largest maximum lump-sum service pension
amount or service pension amount payable per month in effect under paragraphs (c) or (d),
respectively, of section 424A.02, subdivision 3, without regard to the relief association's
minimum average amount of available financing per firefighter. The amount by which the
lump-sum or monthly pension amount is increased must not cause the liabilities of the
retirement plan to exceed the value of the assets, after taking into account full vesting as
required under subdivision 3 and any administrative expenses.
new text end

new text begin (c) The board of trustees shall specify whether the benefit increase will apply to only
members active as of the date of the termination of the retirement plan or whether the benefit
increase will apply to all members, including members who are not active as of the plan
termination date.
new text end

new text begin Subd. 5. new text end

new text begin Determination of assets and liabilities. new text end

new text begin (a) The board of trustees shall determine
the following as of the date of termination of the retirement plan:
new text end

new text begin (1) the fair market value of the assets of the special fund;
new text end

new text begin (2) the present value of each member's accrued benefit, taking into account full vesting
under subdivision 3 and any increased lump-sum or monthly benefit level approved under
subdivision 4;
new text end

new text begin (3) the present value of any benefit remaining to be paid to each retiree in pay status, if
any; and
new text end

new text begin (4) administrative expenses incurred or reasonably anticipated to be incurred through
the date on which all retirement benefits have been distributed or transferred or, if later, the
effective date of the dissolution of the relief association.
new text end

new text begin (b) The board of trustees shall compile a schedule that includes the following information:
new text end

new text begin (1) the name of each member and retiree in pay status to whom a benefit or pension is
or will be owed;
new text end

new text begin (2) the name of each other benefit recipient to whom a benefit or pension is or will be
owed; and
new text end

new text begin (3) for each individual described in clauses (1) and (2), the amount of the benefit or
pension to which the individual is entitled under the bylaws of the relief association, taking
into account the changes required or permitted by this section, the corresponding number
of years of service on which the benefit or pension is based, and the earliest date on which
the benefit or pension would have been payable under the bylaws of the relief association.
new text end

new text begin (c) If the relief association is dissolving, in addition to the determination under paragraph
(a) for the retirement plan, the board of trustees shall determine, as of the effective date of
the dissolution of the relief association, the legal obligations of the general fund of the relief
association.
new text end

new text begin Subd. 6. new text end

new text begin Investment of assets while termination is pending. new text end

new text begin To minimize the risk of
investment losses between the termination date and the date benefits will begin to be
distributed, the board of trustees shall invest the assets in the special fund in low-risk
investments, to the extent consistent with its fiduciary duty under chapter 356A.
new text end

new text begin Subd. 7. new text end

new text begin Allocation of surplus. new text end

new text begin (a) If the retirement plan is a defined benefit plan and
if, after completing the determination of assets, liabilities, and administrative expenses under
subdivision 5, there is a surplus, the board of trustees shall transfer to the affiliated
municipality the lesser of (1) the amount of the surplus, or (2) the sum of all required
contributions, without investment earnings or interest thereon, made by the municipality to
the relief association during the year in which the termination of the retirement plan occurs
or during the preceding nine years.
new text end

new text begin (b) If the affiliated municipality did not make any required contributions to the relief
association during the current or preceding nine years or if, after the transfer described in
paragraph (a), there is surplus remaining, the relief association and the municipality will
mutually agree on an allocation between them of the remaining surplus.
new text end

new text begin (c) If, within 180 days of the date of termination of the retirement plan, the municipality
and relief association have not reached an agreement on the allocation of the surplus under
paragraph (b), then 50 percent of the surplus shall be retained by the relief association and
50 percent of the surplus shall be transferred to the affiliated municipality.
new text end

new text begin (d) Any surplus retained by the relief association under paragraph (c) shall be allocated
among all members eligible to share in the surplus in the same proportion that the present
value of the accrued benefit for each eligible member bears to the total present value of the
accrued benefits of all members eligible to share in the surplus, and each eligible member's
benefit, as determined under subdivision 5, paragraph (a), clause (2), shall be increased by
the member's share of the surplus. The board of trustees shall determine eligibility to share
in the surplus, which may include any of the following, in addition to firefighters active as
of the date on which members became 100 percent vested:
new text end

new text begin (1) inactive firefighters;
new text end

new text begin (2) former firefighters with a deferred benefit under the retirement plan; and
new text end

new text begin (3) retirees in pay status and any other firefighters who, within the last three years or
such other number of years as determined by the board of trustees, separated from active
service and (i) received their retirement benefit, or (ii) began to receive distribution of a
retirement benefit in installments or as a monthly pension.
new text end

new text begin If the board of trustees decides to include the individuals described in clause (3) in the
allocation of the surplus, the board of trustees shall modify the method for allocating the
surplus to take into account such individuals.
new text end

new text begin (e) Any amount of surplus transferred to the affiliated municipality under this subdivision
may only be used for the purposes described in section 424A.08, paragraph (a) or (b).
new text end

new text begin Subd. 8. new text end

new text begin Immediate distribution of retirement benefits and payment of all other
obligations.
new text end

new text begin (a) The board of trustees shall liquidate the assets of the special fund and pay
retirement benefits and administrative expenses under the retirement plan within 210 days
after the effective date of the termination of the retirement plan.
new text end

new text begin (b) If the retirement plan is a defined benefit plan that pays lump-sum benefits or a
defined contribution plan, without regard to whether the member has attained age 50, each
member and other benefit recipient shall be permitted to elect an immediate distribution or
a direct rollover of the member's benefit to an eligible retirement plan as permitted under
section 356.635, subdivisions 3 to 7, if the benefit is an eligible rollover distribution as
defined in section 356.635, subdivisions 4 and 5.
new text end

new text begin (c) If the retirement plan is a defined benefit plan that pays monthly pension benefits,
the board of trustees shall, at the election of the member or other benefit recipient, purchase
an annuity contract under section 424A.015, subdivision 3, naming the member or other
benefit recipient, as applicable, as the insured or distribute a lump sum amount that is equal
to the present value of the monthly pension benefits to which the member or other benefit
recipient is entitled. If an annuity is elected by the member or other benefit recipient, the
annuity shall provide for commencement at a date elected by the insured, to be paid as an
annuity for the life of the insured. Legal title to the annuity contract shall be transferred to
the insured. If a lump sum is elected, the option under paragraph (b) to take an immediate
distribution or a direct rollover shall apply.
new text end

new text begin (d) The board of trustees shall complete the distribution of all assets of the special fund
by making any remaining distributions or transfers as required under subdivision 9 on behalf
of members or other benefit recipients who cannot be located or are unresponsive and paying
any remaining administrative expenses related to the termination of the plan.
new text end

new text begin Subd. 9. new text end

new text begin Missing members. new text end

new text begin (a) For purposes of this subdivision, the terms defined in
this subdivision have the meanings given them.
new text end

new text begin (b) "Retirement benefit" means:
new text end

new text begin (1) the member's account balance if the retirement plan is a defined contribution plan;
new text end

new text begin (2) the member's lump sum benefit if the retirement plan is a defined benefit plan that
pays a lump sum; or
new text end

new text begin (3) an amount equal to the present value of the member's benefit if the retirement plan
is a defined benefit plan that pays a monthly annuity.
new text end

new text begin (c) "Individual retirement account" means an account that satisfies the requirements of
section 408(a) of the Internal Revenue Code which is established by an officer of the relief
association in the name of the member or other benefit recipient at a federally insured
financial institution.
new text end

new text begin (d) If the board of trustees cannot locate a member or other benefit recipient or receives
no response to an offer to distribute a retirement benefit, the board of trustees shall make a
diligent effort to obtain a current address or other contact information as follows:
new text end

new text begin (1) send a notice to the address on file for the member or other benefit recipient using
certified mail;
new text end

new text begin (2) check with the Minnesota State Fire Department Association, the municipality, and
any other employer of the member;
new text end

new text begin (3) check with the member's designated beneficiary on file with the relief association;
and
new text end

new text begin (4) use one or more of the Internet search tools that are free of charge.
new text end

new text begin (e) If the board of trustees is unable to locate the member or other benefit recipient after
taking actions described in paragraph (d), the board of trustees shall transfer the retirement
benefit to an individual retirement account or consider the retirement benefit abandoned
and deposit funds in the amount of the retirement benefit with the commissioner of commerce
under chapter 345. The board of trustees may deposit a retirement benefit with the
commissioner of commerce under chapter 345, notwithstanding any laws to the contrary,
including Minnesota Statutes, section 345.381.
new text end

new text begin Subd. 10. new text end

new text begin Supplemental benefits. new text end

new text begin Within 60 days after the distribution of benefits under
subdivision 8, the municipality or independent nonprofit firefighting corporation with which
the fire department is affiliated shall pay supplemental benefits under section 424A.10 to
each member and survivor who satisfies the requirements of section 424A.10, subdivision
2, if the member is at least age 50. The commissioner of revenue shall reimburse the
municipality or independent nonprofit firefighting corporation for all supplemental benefits
paid as provided in section 424A.10, subdivision 3.
new text end

new text begin Subd. 11. new text end

new text begin Notice of retirement plan termination. new text end

new text begin The board of trustees shall notify
the commissioner of revenue and the state auditor that the retirement plan is being terminated
no later than 30 days before the effective date of the termination of the retirement plan and
provide any information the commissioner or state auditor may require.
new text end

new text begin Subd. 12. new text end

new text begin Wind-up of the relief association. new text end

new text begin The relief association is dissolved effective
on the date that the board of trustees completes the following actions:
new text end

new text begin (1) prepares and files with the state auditor final audited financial statements, pursuant
to section 424A.014, subdivision 1, or, if applicable, the certified financial statement,
pursuant to section 424A.014, subdivision 2;
new text end

new text begin (2) liquidates the general fund and settles all legal obligations of the general fund as
determined under subdivision 5;
new text end

new text begin (3) transfers the records of the relief association to the chief administrative officer of
the affiliated municipality; and
new text end

new text begin (4) notifies the commissioner of revenue, the state auditor, and the secretary of state of
the dissolution no later than 30 days before the effective date of the dissolution.
new text end

Sec. 16. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, sections 424B.20; and 424B.21, new text end new text begin are repealed.
new text end

Sec. 17. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 16 are effective the day following final enactment.
new text end

ARTICLE 13

BROOKLYN PARK FIREFIGHTERS' RELIEF ASSOCIATION
DISSOLUTION OF THE RELIEF ASSOCIATION AND PLAN TERMINATION

Section 1. new text beginBROOKLYN PARK FIREFIGHTERS' RELIEF ASSOCIATION
DISSOLUTION AND PLAN TERMINATION.
new text end

new text begin (a) Notwithstanding any provision of Minnesota Statutes, chapters 424A, 424B, or any
other law to the contrary, the retirement plan administered by the Brooklyn Park Firefighters'
Relief Association is terminated and the relief association is dissolved in accordance with
the provisions of this section following the payment by the relief association of all benefits,
the settlement of all legal obligations, and the distribution of all remaining assets of the
relief association.
new text end

new text begin (b) For the purposes of this section:
new text end

new text begin (1) "alternate payee" means a spouse, former spouse, child, or other dependent of a
volunteer firefighter, who is recognized by a divorce decree or domestic relations order as
having a right to receive all or a portion of the volunteer firefighter's account;
new text end

new text begin (2) "city" means the city of Brooklyn Park;
new text end

new text begin (3) "relief association" means the Brooklyn Park Firefighters' Relief Association;
new text end

new text begin (4) "retirement plan" means the defined contribution retirement plan sponsored,
administered, and maintained by the relief association; and
new text end

new text begin (5) "volunteer firefighter" means a volunteer firefighter, as defined in Minnesota Statutes,
section 424A.001, subdivision 10, employed or previously employed by the city and who
has an account in the retirement plan.
new text end

new text begin (c) The retirement plan is terminated and the volunteer firefighters become 100 percent
vested in their accounts in the retirement plan effective on December 31, 2019, or, if earlier,
the date that the city terminates the employment of the last of its volunteer firefighters. For
purposes of this section, the city will be considered to have terminated the employment of
a volunteer firefighter even if the city hires or continues to employ the volunteer firefighter
as a part-time or full-time city employee performing firefighting or other services.
new text end

new text begin (d) The account of each volunteer firefighter who becomes fully vested under paragraph
(c) shall include an allocation of any forfeiture that is required to occur on December 31,
2019, if the volunteer firefighter is entitled to such allocation under the bylaws of the relief
association. Any account so forfeited shall not be included in the accounts that become fully
vested under paragraph (c).
new text end

new text begin (e) The relief association is dissolved effective on the date that the relief association
completes the following actions:
new text end

new text begin (1) prepares and files with the Office of the State Auditor final audited financial
statements, pursuant to Minnesota Statutes, section 424A.014, subdivision 1;
new text end

new text begin (2) satisfies the requirements of Minnesota Statutes, section 424B.20, subdivision 3,
including the settlement of legal obligations owed to any party to the extent authorized by
Minnesota Statutes, section 424A.05, subdivision 3;
new text end

new text begin (3) distributes the account of each volunteer firefighter, regardless of the age of the
volunteer firefighter, and each alternate payee as soon as possible after enactment.
Distribution must be made in the form of a lump sum payment or direct rollover, at the
election of the volunteer firefighter or alternate payee; and
new text end

new text begin (4) satisfies the requirements of Minnesota Statutes, section 424B.20, subdivision 5,
including the transfer of records to the city and notice to the commissioner of revenue, the
state auditor, and the secretary of state.
new text end

new text begin (f) Within 60 days after the distribution of the accounts under paragraph (e), clause (3),
the city shall (i) pay a supplemental lump sum benefit to each volunteer firefighter and
survivor who satisfies the requirements of Minnesota Statutes, section 424A.10, subdivision
2, if the volunteer firefighter is at least age 50, and (ii) reimburse the relief association for
any supplemental lump sum benefits paid by the relief association during 2020.
new text end

new text begin (g) The city shall file for and the commissioner of revenue shall reimburse the city
pursuant to Minnesota Statutes, section 424A.10, subdivision 3, for the supplemental benefits
paid or reimbursed under paragraph (f).
new text end

new text begin (h) The city is subject to Minnesota Statutes, section 477B.04, subdivision 3, paragraph
(c), for calendar year 2020 with respect to any fire state aid it receives, including the
requirement that it disburse the fire state aid solely for the purposes authorized by Minnesota
Statutes, section 424A.08.
new text end

new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end

new text begin This section is effective the day after
the Brooklyn Park City Council and its chief clerical officer timely complete their compliance
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

ARTICLE 14

RAMSEY VOLUNTEER FIREFIGHTERS' RELIEF ASSOCIATION
DIVISION OF THE RELIEF ASSOCIATION

Section 1. new text beginDIVISION OF RAMSEY VOLUNTEER FIREFIGHTERS' RELIEF
ASSOCIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
section have the meanings given them.
new text end

new text begin (b) "Account balance" means the account established for a member under the Ramsey
relief association, to which an allocation of fire state aid, contributions, forfeitures, and net
investment earnings have been credited for every year the member was eligible to receive
such funding under the bylaws of the Ramsey relief association.
new text end

new text begin (c) "Inactive or deferred Nowthen firefighter" means a Ramsey firefighter who, when
the firefighter was an active firefighter, was assigned to the Nowthen fire station and whose
account in the Ramsey relief association has not yet been distributed or forfeited as provided
under the bylaws of the Ramsey relief association.
new text end

new text begin (d) "Joint powers agreement" means the city of Ramsey and city of Nowthen joint powers
fire protection agreement.
new text end

new text begin (e) "Nowthen firefighter" means a firefighter who is a member of the Ramsey relief
association and who is hired to provide firefighting services to the city of Nowthen by the
city of Nowthen or a municipality with which the city of Nowthen enters into a joint powers
agreement or an independent nonprofit firefighting corporation that provides firefighting
services to the city of Nowthen.
new text end

new text begin (f) "Nowthen relief association" means a volunteer firefighters relief association to be
established by the city of Nowthen or a volunteer firefighters relief association affiliated
with a municipality with which the city of Nowthen enters into a joint powers agreement
or a volunteer firefighters relief association affiliated with an independent nonprofit
firefighting corporation that provides firefighting services to the city of Nowthen or an
account in the Public Employees Retirement Association statewide volunteer firefighter
plan, as directed by the city of Nowthen.
new text end

new text begin (g) "Other benefit recipient of a Nowthen firefighter" means:
new text end

new text begin (1) a person who is entitled to receive all or a portion of a Nowthen firefighter's account
under the Ramsey relief association due to the person having one of the following
relationships to the Nowthen firefighter:
new text end

new text begin (i) surviving spouse;
new text end

new text begin (ii) former spouse who is the alternate payee under a state domestic relations order that
meets the requirements of section 414(p) of the federal Internal Revenue Code of 1986, as
amended, or who is a recipient of a court-ordered distribution of marital property, as provided
in Minnesota Statutes, section 518.58; or
new text end

new text begin (iii) nonspousal beneficiary; or
new text end

new text begin (2) the estate of a Nowthen firefighter.
new text end

new text begin (h) "Ramsey firefighter" means a firefighter who is or was an employee of the city of
Ramsey, is a member of the Ramsey relief association, and provides or provided firefighting
services to the city of Ramsey or the city of Nowthen.
new text end

new text begin (i) "Ramsey relief association" means the city of Ramsey Volunteer Firefighters' Relief
Association.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin This section applies, notwithstanding any provision of Minnesota
Statutes, chapter 424A or 424B, if all of the following occurs:
new text end

new text begin (1) the joint powers agreement expires or is terminated by either party;
new text end

new text begin (2) the city of Nowthen establishes a fire department or enters into a joint powers
agreement with another municipality to provide firefighting services for the city of Nowthen
or enters into an agreement with an independent nonprofit firefighting corporation to provide
firefighting services to the city of Nowthen;
new text end

new text begin (3) the city of Nowthen establishes a volunteer firefighters relief association or the
municipality with which the city of Nowthen enters into a joint powers agreement is affiliated
with a volunteer firefighters relief association or the independent nonprofit firefighting
corporation with which the city of Nowthen enters into an agreement to provide firefighting
services for the city of Nowthen is affiliated with a volunteer firefighters relief association
or the city of Nowthen joins the Public Employees Retirement Association statewide
volunteer firefighter plan; and
new text end

new text begin (4) the Nowthen relief association includes as members one or more firefighters whose
employment with the city of Ramsey terminates on or before December 31, 2021, and who
are hired as firefighters by:
new text end

new text begin (i) the city of Nowthen;
new text end

new text begin (ii) a municipality with which the city of Nowthen enters into a joint powers agreement;
or
new text end

new text begin (iii) an independent nonprofit firefighting corporation that provides firefighting services
to the city of Nowthen.
new text end

new text begin Subd. 3. new text end

new text begin Transfer of Nowthen firefighter accounts. new text end

new text begin (a) By the sixtieth day after the
satisfaction of the conditions described in subdivision 2, the Ramsey relief association shall
transfer to the Nowthen relief association the account balance for each Nowthen firefighter,
each inactive or deferred Nowthen firefighter, and any other benefit recipient of a Nowthen
firefighter in accordance with this subdivision.
new text end

new text begin (b) If the city of Ramsey terminates the employment of one or more firefighters who
become Nowthen firefighters during 2020, the Ramsey relief association shall transfer, by
the end of February 2021, the account balances for each Nowthen firefighter, each inactive
or deferred Nowthen firefighter, and each other benefit recipient of a Nowthen firefighter.
The transfers shall occur after the accounting has been completed for the 2020 calendar
year and all fire state aid, contributions, forfeitures, net investment income, and administrative
expenses during 2020 and as of the 2020 calendar year end have been credited, in accordance
with the bylaws of the Ramsey relief association. Notwithstanding any provision in the
bylaws of the Ramsey relief association, a Nowthen firefighter whose employment is
terminated during 2020 shall be considered for purposes of allocating fire state aid,
contributions, and forfeitures as having worked 12 active service months for 2020.
new text end

new text begin (c) If the city of Ramsey terminates the employment of one or more firefighters who
become Nowthen firefighters during 2021, the Ramsey relief association shall transfer, by
the end of February 2022, the account balances for each Nowthen firefighter and for any
inactive or deferred Nowthen firefighter and any other benefit recipient of a Nowthen
firefighter whose account balance was not transferred under paragraph (b) in 2021. The
transfers shall occur after the accounting has been completed for the 2021 calendar year
and all fire state aid, contributions, forfeitures, net investment income, and administrative
expenses during 2021 and as of the 2021 calendar year end have been credited, in accordance
with the bylaws of the Ramsey relief association. Notwithstanding any provision in the
bylaws of the Ramsey relief association, a Nowthen firefighter whose employment is
terminated during 2021 shall be considered for purposes of allocating fire state aid,
contributions, and forfeitures as having worked 12 active service months for 2021.
new text end

new text begin (d) The transfer of account balances under this subdivision shall be considered authorized
disbursements from the special fund of the Ramsey relief association for purposes of
Minnesota Statutes, section 424A.05, subdivision 3.
new text end

new text begin (e) The Ramsey relief association shall transfer records to the Nowthen relief association
regarding service, vesting service, and account activity for each Nowthen firefighter, inactive
or deferred Nowthen firefighter, or other benefit recipient whose account balance is
transferred.
new text end

new text begin Subd. 4. new text end

new text begin Relief association general fund assets. new text end

new text begin When the Ramsey relief association
transfers the account balances under subdivision 3, the Ramsey relief association shall also
transfer a proportionate share of the assets in the general fund of the Ramsey relief association
to the general fund of the Nowthen relief association. The proportion shall be equal to the
ratio that the total value of the account balances transferred to the Nowthen relief association
bears to the total value of all account balances in the Ramsey relief association on the day
immediately preceding the date of transfer.
new text end

new text begin Subd. 5. new text end

new text begin Fire state aid. new text end

new text begin If subdivision 3, paragraph (b), applies, the city of Ramsey shall
transfer to the city of Nowthen a portion of the 2021 fire state aid received by the city of
Ramsey on or about October 1, 2021, based on 2020 property value and population. The
portion to be transferred shall be equal to the amount determined by the commissioner of
revenue to be attributable to the estimated market value of property and population in the
city of Nowthen fire service area, as a percentage of the total fire state aid paid to the city
of Ramsey on or about October 1, 2021.
new text end

new text begin Subd. 6. new text end

new text begin Service credit under the Nowthen relief association. new text end

new text begin The Nowthen relief
association shall credit each firefighter whose account balance is transferred from the Ramsey
relief association to the Nowthen relief association with the same number of years of service
credit with which the firefighter had been credited under the Ramsey relief association for
vesting and any other purpose for which service credit is granted. Such service credit shall
be applied to retain the firefighter's vesting percentage in the account balance that was
transferred and shall be applied toward the firefighter's vesting percentage in all funds
allocated to the firefighter's account in the Nowthen relief association after the transfer.
new text end

new text begin Subd. 7. new text end

new text begin Full vesting of certain Ramsey firefighters. new text end

new text begin (a) This subdivision applies to
any Ramsey firefighter:
new text end

new text begin (1) who is assigned to the Nowthen fire station;
new text end

new text begin (2) whose employment is terminated by the city of Ramsey on or before December 31,
2021; and
new text end

new text begin (3) who is not hired by the city of Nowthen.
new text end

new text begin (b) Notwithstanding any law or provision in the bylaws of the Ramsey relief association,
the Ramsey relief association shall fully (100 percent) vest the Ramsey firefighter in the
firefighter's account in the Ramsey relief association as of the date the Ramsey firefighter's
employment is terminated.
new text end

new text begin (c) The Ramsey firefighter shall be considered an inactive or deferred Nowthen firefighter
for all purposes under subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 15

VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS
CONVERSIONS FROM DEFINED BENEFIT PLAN
TO DEFINED CONTRIBUTION PLAN

Section 1.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Board of trustees. new text end

new text begin "Board of trustees" means the governing board of a relief
association.
new text end

Sec. 2.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3a. new text end

new text begin Conversion effective date. new text end

new text begin "Conversion effective date" means the date on
which the assets of the defined benefit plan have been allocated to accounts under the defined
contribution plan.
new text end

Sec. 3.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3b. new text end

new text begin Defined benefit plan. new text end

new text begin "Defined benefit plan" means a retirement plan that
provides a retirement benefit that is a lump sum, the amount of which is determined by
multiplying the applicable lump-sum service pension amount under section 424A.02,
subdivision 3, paragraph (d), by years of service, or a monthly pension, the amount of which
is determined by multiplying the applicable monthly pension amount under section 424A.02,
subdivision 3, paragraph (c), by years of service. A defined benefit plan may provide both
a lump-sum benefit and a monthly pension.
new text end

Sec. 4.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3c. new text end

new text begin Defined benefit relief association. new text end

new text begin "Defined benefit relief association" means
a relief association that has established and administers a retirement plan that is a defined
benefit plan.
new text end

Sec. 5.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3d. new text end

new text begin Defined contribution plan. new text end

new text begin "Defined contribution plan" means a retirement
plan that provides a retirement benefit based on the member's individual account balance.
new text end

Sec. 6.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3e. new text end

new text begin Defined contribution relief association. new text end

new text begin "Defined contribution relief
association" means a relief association that has established and administers a retirement
plan that is a defined contribution plan.
new text end

Sec. 7.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3f. new text end

new text begin Firefighting corporation. new text end

new text begin "Firefighting corporation" means an independent
nonprofit firefighting corporation that is organized under chapter 317A and that operates
primarily for firefighting purposes.
new text end

Sec. 8.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 3g. new text end

new text begin Member. new text end

new text begin (a) "Member" means a person:
new text end

new text begin (1) who is a member of a fire department or independent nonprofit firefighting
corporation;
new text end

new text begin (2) who has been credited with at least one year of service toward a retirement benefit
under the retirement plan of a relief association that is affiliated with the fire department or
independent nonprofit firefighting corporation; and
new text end

new text begin (3) whose retirement benefit under the retirement plan has not yet been distributed in a
lump sum or has not yet begun to be distributed in periodic installments or as a monthly
pension.
new text end

new text begin (b) A member may be an active firefighter, an inactive firefighter, or a former firefighter
who has a benefit under the retirement plan but has not become eligible to receive the benefit.
new text end

Sec. 9.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision to
read:


new text begin Subd. 4a. new text end

new text begin Relief association. new text end

new text begin (a) "Relief association" or "volunteer firefighter relief
association" means a nonprofit corporation incorporated under or governed by chapter 317A
that is a governmental entity that receives and manages public money to provide retirement
benefits for individuals providing the governmental services of firefighting and emergency
first response, is subject to chapter 424A, and is affiliated with:
new text end

new text begin (1) a fire department established by municipal ordinance;
new text end

new text begin (2) an independent nonprofit firefighting corporation incorporated under chapter 317A;
or
new text end

new text begin (3) a fire department operated as or by a joint powers entity.
new text end

new text begin (b) Relief association or volunteer firefighters relief association does not mean the
voluntary statewide volunteer firefighter retirement plan governed by chapter 353G.
new text end

Sec. 10.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision
to read:


new text begin Subd. 5a. new text end

new text begin Retirement benefit. new text end

new text begin "Retirement benefit" means the benefit to which a member
is entitled under a retirement plan.
new text end

Sec. 11.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision
to read:


new text begin Subd. 5b. new text end

new text begin Retirement plan. new text end

new text begin "Retirement plan" means the defined benefit plan or defined
contribution plan established and administered by a relief association.
new text end

Sec. 12.

Minnesota Statutes 2018, section 424B.01, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Surplus. new text end

new text begin "Surplus" means the amount by which the assets in a defined benefit
plan exceed accrued liabilities.
new text end

Sec. 13.

new text begin [424B.13] CONVERSION OF RELIEF ASSOCIATION DEFINED BENEFIT
PLAN TO DEFINED CONTRIBUTION PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Authority to initiate conversion. new text end

new text begin (a) The board of trustees of a defined
benefit relief association may convert the defined benefit plan to a defined contribution plan
in accordance with this section.
new text end

new text begin (b) A conversion consists of:
new text end

new text begin (1) termination of the defined benefit plan;
new text end

new text begin (2) establishment of a defined contribution plan; and
new text end

new text begin (3) transfer and allocation of the assets of the defined benefit plan to accounts under the
defined contribution plan.
new text end

new text begin (c) The termination of the defined benefit plan does not dissolve the relief association,
which is an ongoing nonprofit corporation under chapter 317A, unless dissolved under
chapter 317A and section 424B.22.
new text end

new text begin Subd. 2. new text end

new text begin Board of trustees. new text end

new text begin To initiate and complete a conversion, the board of trustees
must:
new text end

new text begin (1) approve resolutions that:
new text end

new text begin (i) state that the defined benefit plan is being converted to a defined contribution plan;
new text end

new text begin (ii) designate a conversion effective date;
new text end

new text begin (iii) fully vest all members as of the conversion effective date in each member's lump-sum
benefit or monthly pension, such that each member is 100 percent vested in the member's
lump-sum benefit or monthly pension;
new text end

new text begin (iv) if the relief association has a surplus as of the end of the relief association's most
recent fiscal year before the conversion effective date, at the option of the board of trustees,
conditionally increase the lump-sum benefit or monthly pension amount under the defined
benefit plan, as provided under subdivision 4;
new text end

new text begin (v) determine the method for allocating a surplus;
new text end

new text begin (vi) adopt a defined contribution plan and approve a plan document that complies with
section 424A.016 and states the terms and conditions for eligibility, vesting, allocation of
contributions, distribution of retirement benefits, and any ancillary benefits; and
new text end

new text begin (vii) authorize any bylaws amendments needed to incorporate items (i) to (vi) into the
bylaws;
new text end

new text begin (2) obtain the consent of the municipality or firefighting corporation if required by
subdivision 3;
new text end

new text begin (3) determine the present value of each member's accrued benefit as of the conversion
effective date as required by subdivision 5;
new text end

new text begin (4) if there is a surplus, allocate the surplus under a method that complies with subdivision
6;
new text end

new text begin (5) if there is not a surplus, take the actions required under subdivision 7;
new text end

new text begin (6) provide the notices required under subdivisions 8 and 9; and
new text end

new text begin (7) implement the conversion, including the requirements under subdivision 10.
new text end

new text begin Subd. 3. new text end

new text begin Consent of municipality or firefighting corporation. new text end

new text begin The consent of the
affiliated municipality, all municipalities if more than one municipality operates the fire
department pursuant to a joint powers agreement, or firefighting corporation to a relief
association's conversion of its defined benefit plan to a defined contribution plan is required
as provided under subdivision 7 only if the relief association does not have a surplus as of
the end of the relief association's most recent fiscal year before the conversion effective
date.
new text end

new text begin Subd. 4. new text end

new text begin Benefit increase. new text end

new text begin (a) If the relief association has a surplus as of the end of the
relief association's most recent fiscal year before the conversion effective date, the board
of trustees may approve a resolution that increases the lump-sum benefit or monthly pension
amount or both the lump sum and monthly pension amount, if the relief association offers
both, and amends the relief association bylaws without the consent of the affiliated
municipality or firefighting corporation, notwithstanding section 424A.02, subdivision 10.
The resulting lump-sum benefit or monthly pension amount is not limited to the maximum
lump-sum benefit or monthly pension amounts under section 424A.02, subdivision 3.
new text end

new text begin (b) The benefit increase must not cause the liabilities of the retirement plan to exceed
the value of the assets, after taking into account full vesting as required under subdivision
2 and any administrative expenses arising from the conversion.
new text end

new text begin (c) The board of trustees shall specify whether the benefit increase will apply only to
members active as of the conversion effective date or whether the benefit increase will apply
to all members, including members who are not active as of the conversion effective date,
notwithstanding section 424A.015, subdivision 6.
new text end

new text begin (d) The board of trustees' resolution approving an increase in the benefit level must be
considered conditional on there being sufficient assets to fund the increase and must state
that if, as of the date benefits are transferred to the defined contribution plan, there are not
sufficient assets to cover all benefit liabilities at the new higher benefit level, the benefit
level will be reduced until assets equal or are greater than liabilities. The resolution must
state that the new lower benefit level will be considered approved by the board of trustees
without further action by the board.
new text end

new text begin Subd. 5. new text end

new text begin Determination of value of pension benefits and distribution to former
members in pay status.
new text end

new text begin (a) The board of trustees shall determine the present value of each
member's accrued benefit, taking into account the full vesting requirement under subdivision
2 and any increase in the lump-sum benefit or monthly pension amount approved under
subdivision 4:
new text end

new text begin (1) using the method set forth in section 424A.092, subdivision 2, for determining a
plan's funded status by calculating the value of each firefighter's accrued benefit; or
new text end

new text begin (2) as determined by an actuary retained by the relief association, who meets the definition
of approved actuary under section 356.215, subdivision 1, paragraph (c).
new text end

new text begin (b) If the retirement plan pays a monthly pension, the board of trustees shall determine
the present value of the remaining payments to any former member or beneficiary who is
receiving an annuity. Present value shall be determined by an actuary who meets the
definition of approved actuary under section 356.215, subdivision 1, paragraph (c), retained
by the relief association. The relief association shall offer the former member or beneficiary
receiving the annuity:
new text end

new text begin (1) an immediate lump sum distribution of an amount equal to the present value of the
remaining payments as determined by the actuary and permit the former member or
beneficiary to elect a lump sum payment or a direct rollover of the amount to an eligible
retirement plan as permitted under section 356.635, subdivisions 3 to 7, if the distribution
is an eligible rollover distribution as defined in section 356.635, subdivisions 4 and 5; or
new text end

new text begin (2) continued payments in the same monthly amount, under an annuity to be purchased
by the board of trustees from a reputable insurance company licensed to do business in the
state.
new text end

new text begin Subd. 6. new text end

new text begin Allocation of surplus. new text end

new text begin (a) If, as of the conversion effective date, the defined
benefit plan has a surplus, the board of trustees shall allocate the surplus as follows:
new text end

new text begin (1) per capita method: each member's account will receive the same dollar amount;
new text end

new text begin (2) service-based method: each member's account will receive a share of the surplus
based on the ratio of the member's years of service to the total years of service for all
members; or
new text end

new text begin (3) member and municipality sharing method under paragraph (b).
new text end

new text begin (b) The board of trustees may allocate the surplus using the member and municipality
sharing method in accordance with this paragraph.
new text end

new text begin (1) For this purpose, "municipality" means "municipality" or "firefighting corporation,"
as applicable.
new text end

new text begin (2) If the fire department is operated by more than one municipality under a joint powers
agreement:
new text end

new text begin (i) any consent by the municipality under this paragraph requires consent by each
municipality that is party to the joint powers agreement;
new text end

new text begin (ii) any payment of surplus to the municipality under this paragraph requires a payment
of a pro rata share of surplus to each municipality that is party to the joint powers agreement;
and
new text end

new text begin (iii) any restrictions on the use of surplus applies to each municipality that is party to
the joint powers agreement.
new text end

new text begin (3) Under the member and municipality sharing method:
new text end

new text begin (i) first, the municipality will receive a share of the surplus based on the ratio of the
municipal contributions made to the defined benefit relief association over a specified period
of years to the total of fire state aid paid and municipal contributions made to the defined
benefit relief association over the same period; and
new text end

new text begin (ii) second, any remaining surplus will be allocated to accounts of members using the
per capita or service-based method.
new text end

new text begin (4) The board of trustees may impose conditions on the use of the surplus by the
municipality, as follows:
new text end

new text begin (i) all or a specified portion of the surplus must be contributed back to the defined
contribution relief association over a specified number of future years for allocation to the
accounts of members eligible for an allocation;
new text end

new text begin (ii) all or a specified portion of the surplus must be used by the municipality for the
purposes described in section 424A.08, paragraph (a) or (b); or
new text end

new text begin (iii) all or a specified portion of the surplus must be used by the municipality to provide
health insurance or other welfare benefits for the members.
new text end

new text begin (c) The board of trustees shall specify whether the surplus will be allocated only to
members who are active firefighters as of the conversion effective date or whether the
surplus will be allocated to all members, including members who are not active firefighters
as of the conversion effective date.
new text end

new text begin Subd. 7. new text end

new text begin Conversion without surplus. new text end

new text begin If the relief association does not have a surplus
as of the end of the relief association's most recent fiscal year before the conversion effective
date, the board of trustees shall:
new text end

new text begin (1) obtain the consent of the municipality, of each municipality, if more than one
municipality operates the fire department pursuant to a joint powers agreement, or of the
firefighting corporation to the conversion and bylaws amendments under subdivision 2; and
new text end

new text begin (2) either:
new text end

new text begin (i) include with the resolutions of the board of trustees under subdivision 2 a resolution
amending the relief association bylaws to decrease the lump-sum or monthly pension benefit
level as necessary to reduce benefit liabilities until plan assets are sufficient to fund all
benefit liabilities, taking into account full vesting under subdivision 2 and the payment of
administrative expenses arising from the conversion; or
new text end

new text begin (ii) enter into an agreement with the municipality, each municipality, if more than one
municipality operates the fire department pursuant to a joint powers agreement, or the
firefighting corporation, as applicable, that requires the municipality, municipalities, or
firefighting corporation, as applicable, to make a contribution in an amount sufficient to
cover all benefit liabilities at the current benefit level, taking into account full vesting under
subdivision 2 and the payment of administrative expenses arising from the conversion.
new text end

new text begin Subd. 8. new text end

new text begin Notice to members. new text end

new text begin The board of trustees shall provide notice to all members
at least 90 days before the conversion effective date. The notice shall include:
new text end

new text begin (1) an explanation that the plan is converting from a defined benefit plan to a defined
contribution plan and provide definitions for those terms, the reasons for the conversion,
the conversion effective date, and the procedure to be followed, including fully vesting all
members;
new text end

new text begin (2) a summary of the terms of the newly adopted defined contribution plan;
new text end

new text begin (3) information about any increase in the benefit level and whether the increase applies
to all members or only active firefighters;
new text end

new text begin (4) a section tailored to each member that provides an estimate of the present value of
the member's fully vested accrued benefit and the calculation that resulted in that value;
new text end

new text begin (5) an estimate of any anticipated surplus and an explanation of the disposition of the
surplus, including, as applicable, a description of the method allocating the surplus among
members' accounts and whether the municipality, each municipality, if more than one
municipality operates the fire department pursuant to a joint powers agreement, or firefighting
corporation will receive any of the surplus and any conditions on its use; and
new text end

new text begin (6) contact information for one or more members of the board of trustees who will answer
questions and provide a copy of the new defined contribution plan document or a summary,
if requested, or directions to a website for viewing and printing the plan document or
summary.
new text end

new text begin Subd. 9. new text end

new text begin Notice to municipality and state auditor. new text end

new text begin The relief association shall provide
notice to the municipality, each municipality, if more than one municipality operates the
fire department pursuant to a joint powers agreement, or firefighting corporation affiliated
with the relief association and the state auditor at the same time as the notice required under
subdivision 8. The notice must include the information required under subdivision 8, except
that the individualized information will be provided as a spreadsheet listing the name of
each firefighter and the corresponding accrued benefit amount.
new text end

new text begin Subd. 10. new text end

new text begin Implementation. new text end

new text begin (a) A record-keeping account shall be established for each
member under the defined contribution plan to which is recorded the value of the firefighter's
fully vested accrued benefit as determined as of the conversion effective date and the amount
of any surplus allocated to the firefighter's account.
new text end

new text begin (b) In no event may the value of a member's account in the defined contribution plan be
less as of the day following the conversion effective date than the present value of the
member's accrued benefit as of the day before the conversion effective date.
new text end

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

new text begin Sections 1 to 13 are effective the day following final enactment.
new text end

ARTICLE 16

STATE AUDITOR VOLUNTEER FIREFIGHTER
WORKING GROUP RECOMMENDATIONS

Section 1.

Minnesota Statutes 2018, section 424A.003, is amended to read:


424A.003 CERTIFICATION OF SERVICE CREDIT.

(a) When a municipal fire department, a joint powers fire department, or an independent
nonprofit firefighting corporation is directly associated with the volunteer firefighters relief
association, the fire chief shall certify annually by March 31 the service credit for the
previous calendar year of each volunteer firefighter rendering active service with the fire
department.

(b) The certification shall be made to an officer of the relief association's board of trustees
and to the municipal clerk or clerk-treasurer of the largest municipality in population served
by the associated fire department.

(c) The fire chief shall notify each volunteer firefighter rendering active service with
the fire department of the amount of service credit rendered by the firefighter for the previous
calendar year. The service credit notification and a description of the process and deadlines
for the firefighter to challenge the fire chief's determination of service credit must be provided
to the firefighter deleted text begin60deleted text end new text beginat least 21 new text enddays prior to its certification to the relief association and
municipality. If the service credit amount is challenged, the fire chief shall accept and
consider any additional pertinent information and shall make a final determination of service
credit.

(d) The service credit certification must be expressed as the number of completed months
of the previous year during which an active volunteer firefighter rendered at least the
minimum level of duties as specified and required by the fire department under the rules,
regulations, and policies applicable to the fire department. No more than one year of service
credit may be certified for a calendar year.

(e) If a volunteer firefighter who is a member of the relief association leaves active
firefighting service to render active military service that is required to be governed by the
federal Uniformed Services Employment and Reemployment Rights Act, as amended, the
firefighter must be certified as providing service credit for the period of the military service,
up to the applicable limit of the federal Uniformed Services Employment and Reemployment
Rights Act. If the volunteer firefighter does not return from the military service in compliance
with the federal Uniformed Services Employment and Reemployment Rights Act, the service
credits applicable to that military service credit period are forfeited and canceled at the end
of the calendar year in which the time limit set by federal law occurs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end

Sec. 2.

Minnesota Statutes 2019 Supplement, section 424A.014, subdivision 1, is amended
to read:


Subdivision 1.

Financial report and audit.

(a) The board of the Bloomington Fire
Department Relief Association and each volunteer firefighters relief association with assets
of at least $500,000 or liabilities of at least $500,000 in the prior year or in any previous
year, according to the applicable actuarial valuation or according to the financial report if
no valuation is required, must prepare a financial report covering the special and general
funds of the relief association for the preceding fiscal year, file the financial report, and
submit financial statements.

(b) The financial report must contain financial statements and disclosures that present
the true financial condition of the relief association and the results of relief association
operations in conformity with generally accepted accounting principles and in compliance
with the regulatory, financing, and funding provisions of this chapter and any other applicable
laws. The financial report must be countersigned by:

(1) the municipal clerk or clerk-treasurer of the municipality in which the relief
association is located if the relief association is a firefighters' relief association that is directly
associated with a municipal fire department;

(2) the municipal clerk or clerk-treasurer of the largest municipality in population that
contracts with the independent nonprofit firefighting corporation if the volunteer firefighter
relief association is a subsidiary of an independent nonprofit firefighting corporation, and
by the secretary of the independent nonprofit firefighting corporation; or

(3) the chief financial official of the county in which the volunteer firefighter relief
association is located or primarily located if the relief association is associated with a fire
department that is not located in or associated with an organized municipality.

(c) The financial report must be retained in the office of the Bloomington Fire Department
Relief Association or the volunteer firefighter relief association for public inspection and
must be filed with the governing body of the government subdivision in which the associated
fire department is located after the close of the fiscal year. One copy of the financial report
must be furnished to the state auditor after the close of the fiscal year.

(d) Audited financial statements must be attested to by a certified public accountant or
by the state auditor and must be filed with the state auditor on or before June 30 after the
close of the fiscal year. Audits must be conducted in compliance with generally accepted
deleted text begin governmentaldeleted text end auditing standards and section 6.65 governing audit procedures. The state
auditor may accept this report in lieu of the report required in paragraph (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2019 Supplement, section 424A.016, subdivision 4, is amended
to read:


Subd. 4.

Individual accounts.

(a) An individual account must be established for each
firefighter who is a member of the relief association.

(b) To each individual active member account must be credited an equal share of:

(1) any amounts of fire state aid and police and firefighter retirement supplemental state
aid received by the relief association;

(2) any amounts of municipal contributions to the relief association raised from levies
on real estate or from other available municipal revenue sources exclusive of fire state aid;
and

(3) any amounts equal to the share of the assets of the special fund to the credit of:

(i) any former member who terminated active service with the fire department to which
the relief association is associated before meeting the minimum service requirement provided
for in subdivision 2, paragraph (b), and has not returned to active service with the fire
department for a period no shorter than five years; or

(ii) any retired member who retired before obtaining a full nonforfeitable interest in the
amounts credited to the individual member account under subdivision 2, paragraph (b), and
any applicable provision of the bylaws of the relief association.

new text begin (c)new text end In addition, any investment return on the assets of the special fund must be credited
in proportion to the share of the assets of the special fund to the credit of each individual
active member accountnew text begin and inactive member account, unless the inactive member is a
deferred member as defined in subdivision 6
new text end.

new text begin (d)new text end Administrative expenses of the relief association payable from the special fund may
be deducted from individual accounts in a manner specified in the bylaws of the relief
association.

deleted text begin (c) If the bylaws so permit and as the bylaws define, the relief association may credit
any investment return on the assets of the special fund to the accounts of inactive members.
deleted text end

deleted text begin (d)deleted text end new text begin(e) new text endAmounts to be credited to individual accounts must be allocated uniformly for
all years of active service and allocations must be made for all years of service, except for
caps on service credit if so provided in the bylaws of the relief association. Amounts forfeited
under paragraph (b), clause (3), before a resumption of active service and membership under
section 424A.01, subdivision 6, remain forfeited and may not be reinstated upon the
resumption of active service and membership. The allocation method may utilize monthly
proration for fractional years of service, as the bylaws or articles of incorporation of the
relief association so provide. The bylaws or articles of incorporation may define a "month,"
but the definition must require a calendar month to have at least 16 days of active service.
If the bylaws or articles of incorporation do not define a "month," a "month" is a completed
calendar month of active service measured from the member's date of entry to the same date
in the subsequent month.

deleted text begin (e)deleted text end new text begin(f) new text endAt the time of retirement under subdivision 2 and any applicable provision of the
bylaws of the relief association, a retiring member is entitled to that portion of the assets of
the special fund to the credit of the member in the individual member account which is
nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief
association based on the number of years of service to the credit of the retiring member.

deleted text begin (f)deleted text end new text begin(g) new text endAnnually, the secretary of the relief association shall certify the individual account
allocations to the state auditor at the same time that the annual financial statement or financial
report and audit of the relief association, whichever applies, is due under section 424A.014.

Sec. 4.

Minnesota Statutes 2019 Supplement, section 424A.016, subdivision 6, is amended
to read:


Subd. 6.

Deferred service pensions.

(a) A new text begin"deferred member" means a new text endmember of a
relief association deleted text beginis entitled to a deferred service pension if the member separatesdeleted text end new text beginwho has
separated
new text endfrom active service and membership and has completed the minimum service and
membership requirements in subdivision 2. The requirement that a member separate from
active service and membership is waived for persons who have discontinued their volunteer
firefighter duties and who are employed on a full-time basis under section 424A.015,
subdivision 1
.

(b) deleted text beginThedeleted text end new text beginA deferred member is entitled to receive a new text enddeferred service pension deleted text beginis payabledeleted text end
when the deleted text beginformerdeleted text end member reaches at least age 50, or at least the minimum age specified in
the bylaws governing the relief association if that age is greater than age 50, and deleted text beginwhen the
former member
deleted text end makes a valid written application.

(c) A defined contribution relief association deleted text beginmay, if its governing bylaws so provide,deleted text end
new text begin must new text endcredit interest or additional investment performance on the deferred lump-sum service
pension during the period of deferralnew text begin for all deferred members on or after January 1, 2021new text end.
deleted text begin If provided for in the bylaws, thedeleted text end Interest must be creditednew text begin using one of the following
methods, as provided for in the bylaws
new text end:

(1) at the investment performance rate actually earned on that portion of the assets if the
deferred benefit amount is invested by the relief association in a separate account established
and maintained by the relief association;

(2) at the investment performance rate actually earned on that portion of the assets if the
deferred benefit amount is invested in a separate investment vehicle held by the relief
association; or

(3) at the investment return on the assets of the special fund of the defined contribution
volunteer firefighters relief association in proportion to the share of the assets of the special
fund to the credit of each individual deferred member account through the accounting date
on which the investment return is recognized by and credited to the special fund.

(d) Unless the bylaws of a relief association that has elected to pay interest or additional
investment performance on deferred lump-sum service pensions under paragraph (c) specifies
a different interest or additional investment performance method, including the interest or
additional investment performance period starting date and ending date, the interest or
additional investment performance on a deferred service pension is creditable as follows:

(1) for a relief association that has elected to credit interest or additional investment
performance under paragraph (c), clause (1) or (3), beginning on the date that the member
separates from active service and membership and ending on the accounting date immediately
before the deferred member commences receipt of the deferred service pension; or

(2) for a relief association that has elected to credit interest or additional investment
performance under paragraph (c), clause (2), beginning on the date that the member separates
from active service and membership and ending on the date that the separate investment
vehicle is valued immediately before the date on which the deferred member commences
receipt of the deferred service pension.

new text begin (e) If the bylaws do not define a method for crediting interest or additional investment
performance, the interest or additional investment performance must be credited using the
method defined in paragraph (c), clause (3).
new text end

new text begin (f) Until December 31, 2020, a defined contribution relief association is permitted, if its
governing bylaws so provide, to credit interest or additional investment performance on the
deferred lump-sum service pension during the period of deferral using the method set forth
in the bylaws applicable on the date on which each deferred member separated from active
service.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2018, section 424A.03, as amended by Laws 2019, First Special
Session chapter 6, article 22, section 20, is amended to read:


424A.03 deleted text beginUNIFORMITY OFdeleted text end VOLUNTEER FIREFIGHTER SERVICE PENSION
AND RETIREMENT BENEFITSnew text begin BASED ON SERVICEnew text end.

Subdivision 1.

deleted text beginLimitation on nonuniformity ofdeleted text end new text beginService new text endpensionsnew text begin based on years of
service
new text end.

deleted text beginEvery partially salaried and partially volunteer firefightersdeleted text end new text beginA new text endrelief association must
provide service pensions new text beginor retirement benefits new text endto deleted text beginvolunteer firefighterdeleted text end new text beginits new text endmembers based
on the years of service of the membersnew text begin,new text end not on the compensation paid to the members for
deleted text begin firefighting services. Each relief association must provide service pensions to salaried
members as set forth in chapter 424 and applicable special laws
deleted text endnew text begin their servicenew text end.

Subd. 2.

deleted text beginPenaltiesdeleted text end new text beginPenalty new text endfor deleted text beginviolationsdeleted text endnew text begin violationnew text end.

deleted text beginA municipality which has a fire
department associated with
deleted text endnew text begin Ifnew text end a relief association deleted text beginwhichdeleted text end violates deleted text beginthe provisions ofdeleted text end subdivision
1 deleted text beginis directly associated or which contracts with an independent nonprofit firefighting
corporation associated with a relief association which violates the provisions of subdivision
1 is a subsidiary may
deleted text endnew text begin, the affiliated municipality or municipalities mustnew text end not be included in
the apportionment of fire state aid and police and firefighter retirement supplemental state
aid payable under chapter 477B and section 423A.022 and deleted text beginmay not be includeddeleted text end in the
apportionment of fire state aid to the various municipalities under section 477B.03.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2018, section 424A.092, subdivision 1, is amended to read:


Subdivision 1.

Application.

This section shall apply to any firefighters relief association
specified in section 424A.091, subdivision 1, which pays a lump-sum service pension, but
which does not pay a monthly service pension, to a retiring firefighter when at least the
minimum requirements for entitlement to a service pension specified in section 424A.02deleted text begin,deleted text end
or any applicable special legislation and the articles of incorporation or bylaws of the relief
association have been met. Each firefighters relief association to which this section applies
shall determine the accrued liability of the special fund of the relief association in accordance
with deleted text beginthe accrued liability table set forth in subdivisiondeleted text end new text beginsubdivisions new text end2 and new text begin2a, if applicable,
and
new text endthe financial requirements of the relief association and the minimum obligation of the
municipality in accordance with the procedure set forth in subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2018, section 424A.092, subdivision 2, is amended to read:


Subd. 2.

Determination of accrued liability.

(a) new text beginBeginning with the calculation
performed in 2021 for the 2022 calendar year
new text endeach firefighters relief association which pays
anew text begin lump-sumnew text end service pension deleted text beginwhen a retiring firefighter meets the minimum requirements
for entitlement to a service pension specified in section 424A.02 and which in its articles
of incorporation or bylaws requires service credit for a period of service of at least 20 years
of active service for a totally nonforfeitable service pension
deleted text end shall determine the accrued
liability of the special fund of the firefighters relief association relative to each active member
of the relief association, calculatednew text begin using the applicable appendix to the standards for actuarial
work established by the Legislative Commission on Pensions and Retirement under section
3.85, subdivision 10.
new text end

new text begin (b) For calendar years before 2022, each firefighters relief association shall determine
the accrued liability of the special fund of the firefighters relief association relative to each
active member of the relief association, calculated
new text end individually using the following table:

Cumulative
Year
Accrued
Liability
............
............
1
$
60
2
124
3
190
4
260
5
334
6
410
7
492
8
576
9
666
10
760
11
858
12
962
13
1070
14
1184
15
1304
16
1428
17
1560
18
1698
19
1844
20
2000
21
and thereafter
100
additional per year

deleted text begin (b)deleted text end As set forth in the table the accrued liability for each member of the relief association
corresponds to the cumulative years of active service to the credit of the member. The
accrued liability of the special fund for each active member is determined by multiplying
the accrued liability from the chart by the ratio of the lump-sum service pension amount
currently provided for in the bylaws of the relief association to a service pension of $100
per year of service.

new text begin (c)new text end If a member has fractional service as of December 31, the figure for service credit
to be used for the determination of accrued liability pursuant to this section shall be rounded
to the nearest full year of service credit. The total accrued liability of the special fund as of
December 31 shall be the sum of the accrued liability attributable to each active member
of the relief association.

deleted text begin (c)deleted text end new text begin(d) new text endTo the extent that the state auditor considers it to be necessary or practical, the
state auditor may specify and issue procedures, forms, or mathematical tables for use in
performing the calculations of the accrued liability for deferred members pursuant to this
subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 17

MSRS UNCLASSIFIED PLAN
ANNUITY RATE GRANDFATHER PROVISION EXTENSION

Section 1.

Minnesota Statutes 2018, section 352D.06, subdivision 1, is amended to read:


Subdivision 1.

Annuity; reserves.

(a) When a participant attains at least age 55,
terminates from covered service, and applies for a retirement annuity, the cash value of the
participant's shares must be transferred to the general state employees retirement fund and
be used to provide an annuity for the participant based upon the participant's age when the
benefit begins to accrue.

(b) Except for participants described in paragraph (c), the monthly amount of the annuity
must be determined using the actuarial assumptions in effect for the general state employees
retirement plan under section 356.215 on the accrual date.

(c) For any participant who retires on or after July 1, 2017, and before July 1, 2020,
when the participant is at least age 63 or has had at least 26 years of covered service, the
monthly amount of the annuity must be determined using the actuarial assumptions in effect
for the general state employees retirement plan under section 356.215 on June 30, 2016.

new text begin (d) For any participant who terminates employment on or after July 1, 2020, and before
July 1, 2021, if the participant was at least age 63 or had at least 26 years of covered service
as of June 30, 2020, the monthly amount of the annuity must be determined using the
actuarial assumptions in effect for the general state employees retirement plan under section
356.215 on June 30, 2016.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: S3808-1

353.30 ANNUITIES UPON RETIREMENT.

Subd. 4.

Reduction in monthly payments.

Monthly payments to which any person may be entitled under this chapter may be reduced upon application to the association, provided that the person shall first relinquish in writing all claim to that part of the full monthly payment which is the difference between the monthly payment which that person would be otherwise entitled to receive and the monthly payment which that person will receive. The reduced monthly payment shall be payment in full of all amounts due under this chapter for the month for which the payment is made and acceptance of the reduced monthly payment releases the retirement association from all obligation to pay to the person the difference between the amount of the reduced monthly payment and the full amount of the monthly payment which the person would otherwise have received. Upon application of the person who is entitled to such monthly payment, it may be increased prospectively to not more than the amount to which the person would have been entitled had no portion thereof been waived.

354.55 OPTIONS TO CERTAIN MEMBERS.

Subd. 10.

Reduced benefits.

Any benefit to which any person may be entitled under this chapter may be reduced in amount upon application of the person entitled thereto to the executive director if the person relinquishes in writing all claim to that part of the full benefit which is the difference between the benefit which the person would be otherwise entitled to receive and the benefit which the person will receive after the benefit reduction. The reduced benefit is payment in full of all amounts due under this chapter for the month for which the payment is made and acceptance of the reduced benefit releases the retirement association from all obligation to pay to the person the difference between the amount of the reduced benefit and the full amount of the benefit which the person would otherwise have received. Any benefit reduced under the provisions of this subdivision may not again be restored.

356.24 SUPPLEMENTAL PENSION OR DEFERRED COMPENSATION PLANS, RESTRICTIONS UPON GOVERNMENT UNITS.

Subd. 2.

Limit on certain contributions or benefit changes.

No change in benefits or employer contributions in a supplemental pension plan to which this section applies that occurs after May 6, 1971, is effective without prior legislative authorization.

356.44 PARTIAL PAYMENT OF PENSION PLAN REFUND.

(a) Notwithstanding any provision of law to the contrary, a member of a pension plan listed in section 356.30, subdivision 3, with at least two years of forfeited service taken from a single pension plan, may repay a portion of all refunds. A partial refund repayment must comply with this section.

(b) The minimum portion of a refund repayment is one-third of the total service credit period of all refunds taken from a single plan.

(c) The cost of the partial refund repayment is the product of the cost of the total repayment multiplied by the ratio of the restored service credit to the total forfeited service credit. The total repayment amount includes interest at the applicable annual rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, whichever applies, compounded annually, from the refund date to the date repayment is received.

(d) The restored service credit must be allocated based on the relationship the restored service bears to the total service credit period for all refunds taken from a single pension plan.

(e) This section does not authorize a public pension plan member to repay a refund if the law governing the plan does not authorize the repayment of a refund of member contributions.

424B.20 DISSOLUTION WITHOUT CONSOLIDATION.

Subdivision 1.

Applicable dissolutions.

This section applies if the fire department associated with a volunteer firefighters relief association is dissolved or eliminated by action of the governing body of the municipality in which the fire department was located or by the independent nonprofit firefighting corporation, whichever applies, and no consolidation with another volunteer firefighters relief association under sections 424B.01 to 424B.10 is sought, or if a volunteer firefighters relief association is dissolved or eliminated with municipal approval, but the fire department associated with the volunteer firefighters relief association is not dissolved or eliminated, and no consolidation with another volunteer firefighters relief association under sections 424B.01 to 424B.10 is applicable.

Subd. 2.

Procedures.

As part of the dissolution process, all legal obligations of the relief association other than service pensions and benefits must be settled under subdivision 3, a benefit trust must be established under subdivision 4, and the affairs of the relief association must be concluded under subdivision 5.

Subd. 3.

Settlement of nonbenefit legal obligations.

(a) Prior to the effective date of the dissolution of the volunteer firefighters relief association established by the relief association board of trustees, the board shall determine the following:

(1) the fair market value of the assets of the special fund;

(2) the total amount of the accounts payable and other legal obligations of the special fund, excluding the accrued liability of the special fund for service pensions and other benefits; and

(3) the accrued liability of the special fund for service pensions and other benefits payable or accrued under the applicable bylaws of the relief association and chapter 424A.

(b) On or before the effective date of the dissolution of the volunteer firefighters relief association, the board shall liquidate sufficient special fund assets to pay the legal obligations of the special fund and must settle those legal obligations.

(c) On or before the effective date of the dissolution of the volunteer firefighters relief association, the board shall settle the legal obligations of the general fund of the relief association.

Subd. 4.

Benefit trust fund establishment.

(a) After the settlement of nonbenefit legal obligations of the special fund of the volunteer firefighters relief association under subdivision 3, the board of the relief association shall transfer the remaining assets of the special fund, as securities or in cash, as applicable, to the chief financial official of the municipality in which the associated fire department was located if the fire department was a municipal fire department or to the chief financial official of the municipality with the largest population served by the fire department if the fire department was an independent nonprofit firefighting corporation. If the fire department was a joint powers entity, the remaining assets of the special fund shall be transferred to the chief financial official of the municipality designated as the fiscal agent in the joint powers agreement or, if the agreement does not designate a municipality as the fiscal agent, the remaining assets of the special fund shall be transferred to the chief financial official of the municipality with the largest population served by the joint powers fire department. The board shall also compile a schedule of the relief association members to whom a service pension is or will be owed, any beneficiary to whom a benefit is owed, the amount of the service pension or benefit payable based on the applicable bylaws and state law and the service rendered to the date of the dissolution, and the date on which the pension or benefit would first be payable under the bylaws of the relief association and state law.

(b) The municipality receiving the remaining assets of the special fund of a volunteer firefighters relief association that is dissolving under this section shall establish a separate account in the municipal treasury which must function as a trust fund for members of the volunteer firefighters relief association and their beneficiaries to whom the volunteer firefighters relief association owes a service pension or other benefit under the bylaws of the relief association and state law. Upon proper application, on or after the initial date on which the service pension or benefit is payable, the municipal treasurer shall pay the pension or benefit due, based on the schedule prepared under paragraph (a) and the other records of the dissolved relief association. The trust fund under this section must be invested and managed consistent with chapter 356A and section 424A.095. Upon payment of the last service pension or benefit due and owing, any remaining assets in the trust fund cancel to the general fund of the municipality or, if the fire department was a joint powers entity, any remaining assets in the trust fund cancel to the general fund of each municipality that was a contracting party to the joint powers agreement as specified in the joint powers agreement. If the joint powers agreement does not specify how the remaining assets are to be distributed among the contracting parties, each of the contracting parties shall receive a pro rata share of the remaining assets based on the proportion of total operating contributions each contracting municipality made to the joint powers entity over the most recent ten calendar years. If the special fund of the volunteer firefighters relief association had an unfunded actuarial accrued liability upon dissolution, the municipality is liable for that unfunded actuarial accrued liability. If the fire department was a joint powers entity, the contracting municipalities are liable for their share of the unfunded actuarial accrued liability as specified in the joint powers agreement. If the joint powers agreement does not specify liability for any unfunded actuarial accrued liability, the contracting municipalities are liable for their pro rata share of the unfunded actuarial accrued liability based on the proportion of total operating contributions each contracting municipality made to the joint powers entity over the most recent ten calendar years.

Subd. 4a.

Disposition of surplus assets upon dissolution of certain volunteer firefighters relief associations.

Notwithstanding any provision to the contrary in subdivision 4, if a volunteer firefighters relief association provides a lump-sum service pension equal to $9,500 or more for each year of service as of June 1, 2018, upon dissolution under this section and payment of the last service pension or benefit due and owing, any remaining assets in the trust fund cancel as follows:

(1) if the municipality was required to make contributions to the relief association under chapter 424A at any time during the ten years preceding June 1, 2018, the remaining assets cancel to the general fund of the municipality; or

(2) if the municipality was not required to make contributions to the relief association under chapter 424A at any time during the ten years preceding June 1, 2018, the remaining assets cancel to the general fund of the state.

Subd. 5.

Relief association affairs wind-up.

Upon dissolution, the board of trustees of the volunteer firefighters relief association shall transfer the records of the relief association to the chief administrative officer of the applicable municipality. The board shall also notify the commissioner of revenue, the state auditor, and the secretary of state of the dissolution within 30 days of the effective date of the dissolution.

424B.21 ANNUITY PURCHASES UPON DISSOLUTION.

The board of trustees of a volunteer firefighters relief association that is scheduled for dissolution may purchase annuity contracts under section 424A.015, subdivision 3, instead of transferring special fund assets to a municipal trust fund under section 424B.20, subdivision 4. Payment of an annuity for which a contract is purchased may not commence before the retirement age specified in the relief association bylaws and in compliance with section 424A.016, subdivision 2, or 424A.02, subdivision 1. Legal title to the annuity contract transfers to the municipal trust fund under section 424B.20, subdivision 4.