Minnesota Legislature
SF 451
2nd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to retirement; various statewide and local 1.3 retirement plans and programs; clarifying the 1.4 application of the open meeting law to local 1.5 retirement plans; including certain American Indian 1.6 tribal governments in police state aid; extending 1.7 disability coverage to certain privatized university 1.8 hospital and other public employees; authorizing 1.9 voluntary employee benefit associations; authorizing 1.10 various generalized and specific service credit 1.11 purchases; excluding certain trades personnel from the 1.12 public employees retirement association; including 1.13 certain Dakota county agricultural society employees 1.14 in the public employees retirement association; 1.15 authorizing mail-in elections and referendums for the 1.16 Minneapolis police relief association; modifying 1.17 restrictions on supplemental retirement plans; 1.18 clarifying membership for certain faculty collective 1.19 bargaining representatives; requiring bonding or 1.20 insurance by certain volunteer fire relief association 1.21 financial consultants; providing a postretirement 1.22 adjustment to certain Eveleth police and paid fire 1.23 trust fund retirees; clarifying the eligibility for 1.24 retirement coverage for various Minnesota state 1.25 colleges and universities system employees; 1.26 implementing various public pension plan 1.27 administrative modifications; including fugitive 1.28 apprehension officers in the state patrol retirement 1.29 plan; expanding public employee retirement association 1.30 general plan membership eligibility; prorating service 1.31 credit for certain general public employee retirement 1.32 plan members; extending certain unfunded actuarial 1.33 accrued liability amortization target dates; 1.34 eliminating mortality gain and loss transfers for the 1.35 Minnesota postretirement investment fund; increasing 1.36 general public employee retirement plan member and 1.37 employer contribution rates; creating a direct state 1.38 aid for the general public employees retirement plan; 1.39 transferring noncertificated public school employees 1.40 to membership in the teachers retirement association; 1.41 mandating a statewide retirement plan administrative 1.42 consolidation feasibility study; mandating an 1.43 educational employees retirement plan aggregation 1.44 feasibility study; funding unpaid retirement 1.45 contributions from certain closed charter schools; 1.46 codifying and revising the Minneapolis firefighters 2.1 relief association law; authorizing social security 2.2 coverage for legislators; appropriating money; 2.3 amending Minnesota Statutes 2000, sections 3A.03, 2.4 subdivision 2; 11A.18, subdivision 7; 13D.01, 2.5 subdivision 1; 69.011, subdivision 1; 352.01, 2.6 subdivisions 2a, 2b, 11; 352.113, subdivisions 4, 6; 2.7 352.22, subdivision 8; 352.87, subdivisions 4, 5; 2.8 352.95, subdivisions 4, 5, 7; 352B.01, subdivisions 2, 2.9 3, 11; 352B.10, subdivision 3; 352B.101; 353.01, 2.10 subdivisions 1, 2, 2a, 2b, 6, 7, 11b, 12, 12a, 16, by 2.11 adding subdivisions; 353.026; 353.03, subdivision 1; 2.12 353.27, subdivisions 2, 3, 4, 10, 11; 353.28, 2.13 subdivision 8; 353.86, subdivision 1; 354.05, 2.14 subdivision 2; 354.41, subdivision 4; 354.52, 2.15 subdivision 4; 354.534, subdivision 1; 354.536, 2.16 subdivision 1; 354.539; 354A.011, subdivision 24; 2.17 354A.098, subdivision 1; 354A.101, subdivision 1; 2.18 354A.106; 354A.12, subdivision 5; 354A.31, subdivision 2.19 3; 354A.35, subdivision 4; 356.215, subdivision 4g; 2.20 356.24, subdivision 1; 356.55, subdivision 7; 356A.06, 2.21 subdivision 5; 356A.08, subdivision 1; 422A.155; 2.22 423B.01, by adding a subdivision; 423B.05, by adding 2.23 subdivisions; 424A.04, by adding a subdivision; 2.24 490.121, subdivision 4; proposing coding for new law 2.25 in Minnesota Statutes, chapters 3A; 13; 352; 352F; 2.26 353; 353F; 354; 354A; 354B; 355; 356; 383D; proposing 2.27 coding for new law as Minnesota Statutes, chapter 2.28 423C; repealing Minnesota Statutes 2000, sections 2.29 354.41, subdivision 9; 354A.026; Laws 1907, chapter 2.30 24; Laws 1913, chapter 318; Laws 1913, chapter 419; 2.31 Laws 1917, chapter 196; Laws 1919, chapter 515; Laws 2.32 1919, chapter 523; Laws 1921, chapter 404; Laws 1923, 2.33 chapter 61; Laws 1945, chapter 322; Laws 1959, chapter 2.34 213; Laws 1959, chapter 491; Laws 1959, chapter 568; 2.35 Laws 1961, chapter 109; Extra Session Laws 1961, 2.36 chapter 3; Laws 1963, chapter 318; Laws 1965, chapter 2.37 519; Laws 1965, chapter 578; Laws 1967, chapter 819; 2.38 Laws 1967, chapter 824; Laws 1969, chapter 123; Laws 2.39 1969, chapter 287; Laws 1971, chapter 542; Laws 1975, 2.40 chapter 57; Laws 1977, chapter 164, section 2; Laws 2.41 1980, chapter 607, article XV, sections 8, 9, 10; Laws 2.42 1988, chapter 572, sections 4, 5, 6; Laws 1988, 2.43 chapter 574, sections 3, 4, 5; Laws 1989, chapter 319, 2.44 article 19, sections 6, 7; Laws 1990, chapter 589, 2.45 article 1, sections 5, 6; Laws 1992, chapter 429; Laws 2.46 1992, chapter 454, section 2; Laws 1992, chapter 471, 2.47 article 2; Laws 1993, chapter 125; Laws 1993, chapter 2.48 192, section 32; Laws 1994, chapter 591; Laws 1994, 2.49 chapter 632, article 3, section 14; Laws 1996, chapter 2.50 448, article 2, section 3; Laws 1996, chapter 448, 2.51 article 3, section 1; Laws 1997, chapter 233, article 2.52 4, sections 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 2.53 22; Laws 1998, chapter 390, article 7, section 2; Laws 2.54 2000, chapter 461, article 17, sections 6, 7, 8, 9, 2.55 10, 11, 12, 13. 2.56 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.57 ARTICLE 1 2.58 OPEN MEETING REQUIREMENT FOR LOCAL PUBLIC PENSION PLANS 2.59 Section 1. Minnesota Statutes 2000, section 13D.01, 2.60 subdivision 1, is amended to read: 2.61 Subdivision 1. [IN EXECUTIVE BRANCH, LOCAL GOVERNMENT.] 2.62 All meetings, including executive sessions, must be open to the 2.63 public 3.1 (a) of a state 3.2 (1) agency, 3.3 (2) board, 3.4 (3) commission, or 3.5 (4) department, 3.6 when required or permitted by law to transact public business in 3.7 a meeting;and3.8 (b) of the governing body of a 3.9 (1) school district however organized, 3.10 (2) unorganized territory, 3.11 (3) county, 3.12 (4) statutory or home rule charter city, 3.13 (5) town, or 3.14 (6) other public body;and3.15 (c) of any 3.16 (1) committee, 3.17 (2) subcommittee, 3.18 (3) board, 3.19 (4) department, or 3.20 (5) commission, 3.21 of a public body; and 3.22 (d) of the governing body or a committee of 3.23 (1) a statewide public pension plan defined in section 3.24 356A.01, subdivision 24; or 3.25 (2) a local public pension plan governed by section 69.77, 3.26 sections 69.771 to 69.775, or chapter 354A, 422A, or 423B. 3.27 Sec. 2. Minnesota Statutes 2000, section 356A.08, 3.28 subdivision 1, is amended to read: 3.29 Subdivision 1. [PUBLIC MEETINGS.] A meeting of the 3.30 governing board of a coveredstatewidepension plan or of a 3.31 committee of the governing board of thestatewidecovered 3.32 pension plan is governed by chapter 13D. 3.33 Sec. 3. [EFFECTIVE DATE.] 3.34 Sections 1 and 2 are effective the day following final 3.35 enactment. 3.36 ARTICLE 2 4.1 POLICE STATE AID AMENDMENTS 4.2 Section 1. Minnesota Statutes 2000, section 69.011, 4.3 subdivision 1, is amended to read: 4.4 Subdivision 1. [DEFINITIONS.] Unless the language or 4.5 context clearly indicates that a different meaning is intended, 4.6 the following words and terms shall for the purposes of this 4.7 chapter and chapters 423, 423A, 424 and 424A have the meanings 4.8 ascribed to them: 4.9 (a) "Commissioner" means the commissioner of revenue. 4.10 (b) "Municipality" meansany: 4.11 (1) a home rule charter or statutory city,; 4.12 (2) an organized townor; 4.13 (3) a park district subject to chapter 398,; 4.14 (4) the University of Minnesota, and,; 4.15 (5) for purposes of the fire state aid program only, an 4.16 American Indian tribal government entity located within a 4.17 federally recognized American Indian reservation, and,; 4.18 (6) for purposes of the police state aid program only, an 4.19 American Indian tribal government with a tribal police 4.20 department which exercises state arrest powers under section 4.21 626.90, 626.91, 626.92, or 626.93; 4.22 (7) for purposes of the police state aid program only, the 4.23 metropolitan airports commission,with respect to peace officers 4.24 covered under chapter 422A, or; and 4.25 (8) for purposes of the police state aid program only, the 4.26 department of natural resources and the department of public 4.27 safety with respect to peace officers covered under chapter 352B. 4.28 (c) "Minnesota Firetown Premium Report" means a form 4.29 prescribed by the commissioner containing space for reporting by 4.30 insurers of fire, lightning, sprinkler leakage and extended 4.31 coverage premiums received upon risks located or to be performed 4.32 in this state less return premiums and dividends. 4.33 (d) "Firetown" means the area serviced by any municipality 4.34 having a qualified fire department or a qualified incorporated 4.35 fire department having a subsidiary volunteer firefighters' 4.36 relief association. 5.1 (e) "Market value" means latest available market value of 5.2 all property in a taxing jurisdiction, whether the property is 5.3 subject to taxation, or exempt from ad valorem taxation obtained 5.4 from information which appears on abstracts filed with the 5.5 commissioner of revenue or equalized by the state board of 5.6 equalization. 5.7 (f) "Minnesota Aid to Police Premium Report" means a form 5.8 prescribed by the commissioner for reporting by each fire and 5.9 casualty insurer of all premiums received upon direct business 5.10 received by it in this state, or by its agents for it, in cash 5.11 or otherwise, during the preceding calendar year, with reference 5.12 to insurance written for insuring against the perils contained 5.13 in auto insurance coverages as reported in the Minnesota 5.14 business schedule of the annual financial statement which each 5.15 insurer is required to file with the commissioner in accordance 5.16 with the governing laws or rules less return premiums and 5.17 dividends. 5.18 (g) "Peace officer" means any person: 5.19 (1) whose primary source of income derived from wages is 5.20 from direct employment by a municipality or county as a law 5.21 enforcement officer on a full-time basis of not less than 30 5.22 hours per week; 5.23 (2) who has been employed for a minimum of six months prior 5.24 to December 31 preceding the date of the current year's 5.25 certification under subdivision 2, clause (b); 5.26 (3) who is sworn to enforce the general criminal laws of 5.27 the state and local ordinances; 5.28 (4) who is licensed by the peace officers standards and 5.29 training board and is authorized to arrest with a warrant; and 5.30 (5) who is a member of a local police relief association to 5.31 which section 69.77 applies, the state patrol retirement plan, 5.32 the public employees police and fire fund, or the Minneapolis 5.33 employees retirement fund. 5.34 (h) "Full-time equivalent number of peace officers 5.35 providing contract service" means the integral or fractional 5.36 number of peace officers which would be necessary to provide the 6.1 contract service if all peace officers providing service were 6.2 employed on a full-time basis as defined by the employing unit 6.3 and the municipality receiving the contract service. 6.4 (i) "Retirement benefits other than a service pension" 6.5 means any disbursement authorized under section 424A.05, 6.6 subdivision 3, clauses (2), (3), and (4). 6.7 (j) "Municipal clerk, municipal clerk-treasurer, or county 6.8 auditor" means the person who was elected or appointed to the 6.9 specified position or, in the absence of the person, another 6.10 person who is designated by the applicable governing body. In a 6.11 park district, the clerk is the secretary of the board of park 6.12 district commissioners. In the case of the University of 6.13 Minnesota, the clerk is that official designated by the board of 6.14 regents. For the metropolitan airports commission, the clerk is 6.15 the person designated by the commission. For the department of 6.16 natural resources or the department of public safety, the clerk 6.17 is the respective commissioner. For a tribal police department 6.18 which exercises state arrest powers under section 626.90, 6.19 626.91, 626.92, or 626.93, the clerk is the person designated by 6.20 the applicable American Indian tribal government. 6.21 Sec. 2. [EFFECTIVE DATE.] 6.22 Section 1 is effective the day following final enactment. 6.23 ARTICLE 3 6.24 POSTRETIREMENT HEALTH CARE INSURANCE COVERAGE 6.25 Section 1. [352.98] [POSTRETIREMENT HEALTH CARE SAVINGS 6.26 PLAN.] 6.27 Subdivision 1. [PLAN CREATED.] The Minnesota state 6.28 retirement system shall establish a plan or plans, known as 6.29 postretirement health care savings plans, through which public 6.30 employers and employees may save to cover postretirement health 6.31 care costs. The Minnesota state retirement system shall make 6.32 available one or more trusts, including a governmental trust or 6.33 governmental trusts, authorized under the Internal Revenue Code 6.34 to be eligible for tax-preferred or tax-free treatment through 6.35 which employers and employees can save to cover postretirement 6.36 health care costs. 7.1 Subd. 2. [CONTRACTING AUTHORIZED.] The Minnesota state 7.2 retirement system is authorized to administer the plan and to 7.3 contract with public and private entities to provide investment 7.4 services, recordkeeping, benefit payments, and other functions 7.5 necessary for the administration of the plan. If allowed by the 7.6 Minnesota state board of investment, the Minnesota state board 7.7 of investment supplemental investment funds may be offered as 7.8 investment options under the postretirement savings plan or 7.9 plans. 7.10 Subd. 3. [CONTRIBUTIONS.] (a) Contributions to the plan 7.11 shall be determined through a personnel policy or in a 7.12 collective bargaining agreement of a public employer with the 7.13 exclusive representative of the covered employees in an 7.14 appropriate unit. The Minnesota state retirement system may 7.15 offer different types of trusts permitted under the Internal 7.16 Revenue Code to best meet the needs of different employee units. 7.17 (b) Contributions to the plan by or on behalf of the 7.18 employee shall be held in trust for reimbursement of employee 7.19 and dependent health-related expenses following retirement from 7.20 public employment. The Minnesota state retirement system shall 7.21 maintain a separate account of the contributions made by or on 7.22 behalf of each participant and the earnings thereon. The 7.23 Minnesota state retirement system shall make available a limited 7.24 range of investment options, and each employee may direct the 7.25 investment of the accumulations in the employee's account among 7.26 the investment options made available by the Minnesota state 7.27 retirement system. At the request of a participating employer 7.28 and employee group, the Minnesota state retirement system may 7.29 determine how the assets of the affected employer and employee 7.30 group should be invested. 7.31 Subd. 4. [REIMBURSEMENT FOR HEALTH-RELATED EXPENSES.] 7.32 Following termination of public service, the Minnesota state 7.33 retirement system shall reimburse employees at least quarterly 7.34 for submitted health-related expenses, until the employee 7.35 exhausts the accumulation in the employee's account. If an 7.36 employee dies prior to exhausting the employee's account 8.1 balance, the employee's spouse or dependents shall be eligible 8.2 to be reimbursed for health care expenses from the account until 8.3 the account balance is exhausted. If an account balance remains 8.4 after the death of a participant and all of the participant's 8.5 legal dependents, the remainder of the account shall be paid to 8.6 the employee's beneficiaries or, if none, to the employee's 8.7 estate. 8.8 Subd. 5. [FEES.] The Minnesota state retirement plan is 8.9 authorized to charge uniform fees to participants to cover the 8.10 ongoing cost of operating the plan. Any fees not needed shall 8.11 revert to participant accounts or be used to reduce plan fees 8.12 the following year. 8.13 Subd. 6. [ADVISORY COMMITTEE.] (a) The Minnesota state 8.14 retirement system shall establish a participant advisory 8.15 committee for the plan, made up of one representative appointed 8.16 by each employee unit participating in the plan. Each 8.17 participating unit shall be responsible for the expenses of its 8.18 own representative. 8.19 (b) The advisory committee shall meet at least twice per 8.20 year and shall be consulted on plan offerings and vendor 8.21 selection. By October 1 of each year, the Minnesota state 8.22 retirement system shall give the advisory committee a statement 8.23 of fees collected and the use of the fees. 8.24 Subd. 7. [CONTRACTING WITH PRIVATE ENTITIES.] Nothing in 8.25 this section shall prohibit employers from contracting with 8.26 private entities to provide for postretirement health care 8.27 reimbursement plans. 8.28 Sec. 2. Minnesota Statutes 2000, section 356.24, 8.29 subdivision 1, is amended to read: 8.30 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 8.31 for a school district or other governmental subdivision or state 8.32 agency to levy taxes for, or contribute public funds to a 8.33 supplemental pension or deferred compensation plan that is 8.34 established, maintained, and operated in addition to a primary 8.35 pension program for the benefit of the governmental subdivision 8.36 employees other than: 9.1 (1) to a supplemental pension plan that was established, 9.2 maintained, and operated before May 6, 1971; 9.3 (2) to a plan that provides solely for group health, 9.4 hospital, disability, or death benefits; 9.5 (3) to the individual retirement account plan established 9.6 by chapter 354B; 9.7 (4) to a plan that provides solely for severance pay under 9.8 section 465.72 to a retiring or terminating employee; 9.9 (5) for employees other than personnel employed by the 9.10 state university board or the community college board and 9.11 covered by the board of trustees of the Minnesota state colleges 9.12 and universities supplemental retirement plan under chapter 9.13 354C, if provided for in a personnel policy of the public 9.14 employer or in the collective bargaining agreement between the 9.15 public employer and the exclusive representative of public 9.16 employees in an appropriate unit, in an amount matching employee 9.17 contributions on a dollar for dollar basis, but not to exceed an 9.18 employer contribution of $2,000 a year per employee; 9.19 (i) to the state of Minnesota deferred compensation plan 9.20 under section 352.96; or 9.21 (ii) in payment of the applicable portion of the 9.22 contribution made to any investment eligible under section 9.23 403(b) of the Internal Revenue Code, if the employing unit has 9.24 complied with any applicable pension plan provisions of the 9.25 Internal Revenue Code with respect to the tax-sheltered annuity 9.26 program during the preceding calendar year;or9.27 (6) for personnel employed by the state university board or 9.28 the community college board and not covered by clause (5), to 9.29 the supplemental retirement plan under chapter 354C, if provided 9.30 for in a personnel policy or in the collective bargaining 9.31 agreement of the public employer with the exclusive 9.32 representative of the covered employees in an appropriate unit, 9.33 in an amount matching employee contributions on a dollar for 9.34 dollar basis, but not to exceed an employer contribution of 9.35 $2,700 a year for each employee; or 9.36 (7) to a supplemental plan or to a governmental trust to 10.1 save for postretirement health care expenses qualified for 10.2 tax-preferred treatment under the Internal Revenue Code, if 10.3 provided for in a personnel policy or in the collective 10.4 bargaining agreement of a public employer with the exclusive 10.5 representative of the covered employees in an appropriate unit. 10.6 Sec. 3. [APPROPRIATION.] 10.7 $75,000 is appropriated to the Minnesota state retirement 10.8 system from the general fund to cover the costs of establishing 10.9 the plan created in section 1. Any amount not needed shall 10.10 revert to the general fund on June 30, 2003. 10.11 ARTICLE 4 10.12 PRIVATIZED PUBLIC EMPLOYEE DISABILITY COVERAGE 10.13 Section 1. [352F.051] [CONTINUATION OF DISABILITY 10.14 COVERAGE.] 10.15 Subdivision 1. [ELIGIBILITY.] A terminated hospital 10.16 employee who is totally and permanently disabled under section 10.17 352.01, subdivision 17, and who had a medically documented 10.18 preexisting condition of the disability before January 1, 1997, 10.19 may apply under Minnesota Statutes 1996, section 352.113, 10.20 subdivision 1, for a disability benefit. 10.21 Subd. 2. [CALCULATION OF BENEFITS.] A person qualifying 10.22 under subdivision 1 is entitled to receive a disability benefit 10.23 calculated under Minnesota Statutes 1996, section 352.113, 10.24 subdivision 3. The disability benefit must be augmented under 10.25 section 352.72, subdivision 2, from January 1, 1997, to the date 10.26 on which the disability benefit begins to accrue. 10.27 Subd. 3. [APPLICABILITY OF GENERAL LAW.] Except as 10.28 otherwise provided, section 352.113 applies to a person who 10.29 qualifies for disability under subdivision 1. 10.30 Sec. 2. [353F.051] [CONTINUATION OF DISABILITY COVERAGE.] 10.31 Subdivision 1. [ELIGIBILITY.] A terminated medical 10.32 facility or other public employing unit employee who is totally 10.33 and permanently disabled under Minnesota Statutes 1998, section 10.34 353.01, subdivision 19, and who had a medically documented 10.35 preexisting condition of the disability before the termination 10.36 of coverage may apply for a disability benefit. 11.1 Subd. 2. [CALCULATION OF BENEFITS.] A person qualifying 11.2 under subdivision 1 is entitled to receive a disability benefit 11.3 calculated under Minnesota Statutes 1998, section 353.33, 11.4 subdivision 3. The disability benefit must be augmented under 11.5 Minnesota Statutes 1998, section 353.71, subdivision 2, from the 11.6 date of termination to the date the disability benefit begins to 11.7 accrue. 11.8 Subd. 3. [APPLICABILITY OF GENERAL LAW.] Except as 11.9 otherwise provided, Minnesota Statutes 1998, section 353.33, 11.10 applies to a person who qualifies for disability under 11.11 subdivision 1. 11.12 Sec. 3. [EFFECTIVE DATE.] 11.13 (a) Sections 1 and 2 are effective the day following final 11.14 enactment. 11.15 (b) A disability benefit under section 1 is payable 11.16 retroactively to March 1, 2000, or to the first of the month 11.17 next following the date on which the eligible person attempted 11.18 to apply for a disability benefit from the general state 11.19 employees retirement plan of the Minnesota state retirement 11.20 system, whichever is later. 11.21 ARTICLE 5 11.22 PERA-GENERAL MEMBERSHIP INCLUSIONS 11.23 Section 1. Minnesota Statutes 2000, section 353.01, 11.24 subdivision 2a, is amended to read: 11.25 Subd. 2a. [INCLUDED EMPLOYEES.] Public employees whose 11.26 salary from one governmental subdivision exceeds $425 in any 11.27 month shall participate as members of the association. If the 11.28 salary of an employee is less than $425 in a subsequent month, 11.29 the employee retains membership eligibility. The following 11.30 persons are considered public employees: 11.31 (1) employees whose annual salary from one governmental 11.32 subdivision exceeds a stipulation prepared in advance, in 11.33 writing, to be not more than $5,100 per calendar year or per 11.34 school year for school employees for employment expected to be 11.35 of a full year's duration or more than the prorated portion of 11.36 $5,100 per employment period expected to be of less than a full 12.1 year's duration. If compensation from one governmental 12.2 subdivision to an employee under this clause exceeds $5,100 per 12.3 calendar year or school year after being stipulated in advance 12.4 not to exceed that amount, the stipulation is no longer valid 12.5 and contributions must be made on behalf of the employee under 12.6 section 353.27, subdivision 12, from the month in which the 12.7 employee's salary first exceeded $425; 12.8 (2) employees whose total salary from concurrent 12.9 nontemporary positions in one governmental subdivision exceeds 12.10 $425 in any month; 12.11 (3) elected officers for service to which they were elected 12.12 by the public-at-large, or persons appointed to fill a vacancy 12.13 in an elective office, who elect to participate by filing an 12.14 application for membership, but not for service on a joint or 12.15 regional board that is a governmental subdivision under 12.16 subdivision 6, paragraph (a), unless the salary earned for that 12.17 service exceeds $425 in any month. The option to become a 12.18 member, once exercised, may not be withdrawn during the 12.19 incumbency of the person in office; 12.20 (4) members who are appointed by the governor to be a state 12.21 department head and elect not to be covered by the Minnesota 12.22 state retirement system under section 352.021; 12.23 (5) employees of elected officers; 12.24 (6) persons who elect to remain members under section 12.25 480.181, subdivision 2; 12.26 (7) employees of a school district who receive separate 12.27 salaries for driving their own buses; 12.28 (8) employees of the Minnesota association of townships 12.29 when the board of the association, at its option, certifies to 12.30 the executive director that its employees are to be included for 12.31 purposes of retirement coverage, in which case coverage of all 12.32 employees of the association is permanent; 12.33 (9) employees of a county historical society who are county 12.34 employees; 12.35 (10) employees of a county historical society located in 12.36 the county whom the county, at its option, certifies to the 13.1 executive director to be county employees for purposes of 13.2 retirement coverage under this chapter, which status must be 13.3 accorded to all similarly situated county historical society 13.4 employees and, once established, must continue as long as a 13.5 person is an employee of the county historical society and is 13.6 not excluded under subdivision 2b;and13.7 (11) employees who became members before July 1, 1988, 13.8 based on the total salary of positions held in more than one 13.9 governmental subdivision; and 13.10 (12) full-time employees of the Dakota county agricultural 13.11 society. 13.12 Sec. 2. Minnesota Statutes 2000, section 353.01, 13.13 subdivision 2b, is amended to read: 13.14 Subd. 2b. [EXCLUDED EMPLOYEES.] The following public 13.15 employees shall not participate as members of the association 13.16 with retirement coverage by the public employees retirement plan 13.17 or the public employees police and fire retirement plan: 13.18 (1) elected public officers, or persons appointed to fill a 13.19 vacancy in an elective office, who do not elect to participate 13.20 in the association by filing an application for membership; 13.21 (2) election officers; 13.22 (3) patient and inmate personnel who perform services in 13.23 charitable, penal, or correctional institutions of a 13.24 governmental subdivision; 13.25 (4) employees who are hired for a temporary position under 13.26 subdivision 12a, and employees who resign from a nontemporary 13.27 position and accept a temporary position within 30 days in the 13.28 same governmental subdivision, but not those employees who are 13.29 hired for an unlimited period but are serving a probationary 13.30 period. If the period of employment extends beyond six 13.31 consecutive months and the employee earns more than $425 from 13.32 one governmental subdivision in any one calendar month, the 13.33 department head shall report the employee for membership and 13.34 require employee deductions be made on behalf of the employee 13.35 under section 353.27, subdivision 4. 13.36 Membership eligibility of an employee who resigns or is 14.1 dismissed from a temporary position and within 30 days accepts 14.2 another temporary position in the same governmental subdivision 14.3 is determined on the total length of employment rather than on 14.4 each separate position. Membership eligibility of an employee 14.5 who holds concurrent temporary and nontemporary positions in one 14.6 governmental subdivision is determined by the length of 14.7 employment and salary of each separate position; 14.8 (5) employees whose actual salary from one governmental 14.9 subdivision does not exceed $425 per month, or whose annual 14.10 salary from one governmental subdivision does not exceed a 14.11 stipulation prepared in advance, in writing, that the salary 14.12 must not exceed $5,100 per calendar year or per school year for 14.13 school employees for employment expected to be of a full year's 14.14 duration or more than the prorated portion of $5,100 per 14.15 employment period for employment expected to be of less than a 14.16 full year's duration; 14.17 (6) employees who are employed by reason of work emergency 14.18 caused by fire, flood, storm, or similar disaster; 14.19 (7) employees who by virtue of their employment in one 14.20 governmental subdivision are required by law to be a member of 14.21 and to contribute to any of the plans or funds administered by 14.22 the Minnesota state retirement system, the teachers retirement 14.23 association, the Duluth teachers retirement fund association, 14.24 the Minneapolis teachers retirement association, the St. Paul 14.25 teachers retirement fund association, the Minneapolis employees 14.26 retirement fund, or any police or firefighters relief 14.27 association governed by section 69.77 that has not consolidated 14.28 with the public employees retirement association, or any local 14.29 police or firefighters consolidation account but who have not 14.30 elected the type of benefit coverage provided by the public 14.31 employees police and fire fund under sections 353A.01 to 14.32 353A.10, or any persons covered by section 353.665, subdivision 14.33 4, 5, or 6, who have not elected public employees police and 14.34 fire plan benefit coverage. This clause must not be construed 14.35 to prevent a person from being a member of and contributing to 14.36 the public employees retirement association and also belonging 15.1 to and contributing to another public pension fund for other 15.2 service occurring during the same period of time. A person who 15.3 meets the definition of "public employee" in subdivision 2 by 15.4 virtue of other service occurring during the same period of time 15.5 becomes a member of the association unless contributions are 15.6 made to another public retirement fund on the salary based on 15.7 the other service or to the teachers retirement association by a 15.8 teacher as defined in section 354.05, subdivision 2; 15.9 (8) persons who are excluded from coverage under the 15.10 federal Old Age, Survivors, Disability, and Health Insurance 15.11 Program for the performance of service as specified in United 15.12 States Code, title 42, section 410(a)(8)(A), as amended through 15.13 January 1, 1987, if no irrevocable election of coverage has been 15.14 made under section 3121(r) of the Internal Revenue Code of 1954, 15.15 as amended; 15.16 (9) full-time students who are enrolled and are regularly 15.17 attending classes at an accredited school, college, or 15.18 university and who are part-time employees as defined by a 15.19 governmental subdivision; 15.20 (10) resident physicians, medical interns, and pharmacist 15.21 residents and pharmacist interns who are serving in a degree or 15.22 residency program in public hospitals; 15.23 (11) students who are serving in an internship or residency 15.24 program sponsored by an accredited educational institution; 15.25 (12) persons who hold a part-time adult supplementary 15.26 technical college license who render part-time teaching service 15.27 in a technical college; 15.28 (13) foreign citizens working for a governmental 15.29 subdivision with a work permit of less than three years, or an 15.30 H-1b visa valid for less than three years of employment. Upon 15.31 notice to the association that the work permit or visa extends 15.32 beyond the three-year period, the foreign citizens are eligible 15.33 for membership from the date of the extension; 15.34 (14) public hospital employees who elected not to 15.35 participate as members of the association before 1972 and who 15.36 did not elect to participate from July 1, 1988, to October 1, 16.1 1988; 16.2 (15) except as provided in section 353.86, volunteer 16.3 ambulance service personnel, as defined in subdivision 35, but 16.4 persons who serve as volunteer ambulance service personnel may 16.5 still qualify as public employees under subdivision 2 and may be 16.6 members of the public employees retirement association and 16.7 participants in the public employees retirement fund or the 16.8 public employees police and fire fund on the basis of 16.9 compensation received from public employment service other than 16.10 service as volunteer ambulance service personnel; 16.11 (16) except as provided in section 353.87, volunteer 16.12 firefighters, as defined in subdivision 36, engaging in 16.13 activities undertaken as part of volunteer firefighter duties; 16.14 provided that a person who is a volunteer firefighter may still 16.15 qualify as a public employee under subdivision 2 and may be a 16.16 member of the public employees retirement association and a 16.17 participant in the public employees retirement fund or the 16.18 public employees police and fire fund on the basis of 16.19 compensation received from public employment activities other 16.20 than those as a volunteer firefighter; 16.21 (17) pipefitters and associated trades personnel employed 16.22 by independent school district No. 625, St. Paul, with 16.23 coverage under a collective bargaining agreement by the 16.24 pipefitters local 455 pension planunder a collective bargaining16.25agreementwho were either first employed after May 1, 1997, or, 16.26 if first employed before May 2, 1997, elected to be excluded 16.27 under Laws 1997, chapter 241, article 2, section 12;and16.28 (18) electrical workers, plumbers, carpenters, and 16.29 associated trades personnel employed by independent school 16.30 district No. 625, St. Paul, or the city of St. Paul, with 16.31 coverage under a collective bargaining agreement by the 16.32 electrical workers local 110 pension plan, the united 16.33 association plumbers local 34 pension plan, or the carpenters 16.34 local 87 pension planunder a collective bargaining agreement16.35 who were either first employed after May 1, 2000, or, if first 16.36 employed before May 2, 2000, elected to be excluded under Laws 17.1 2000, chapter 461, article 7, section 5.; 17.2 (19) bricklayers, allied craftworkers, cement masons, 17.3 glaziers, glassworkers, painters, allied tradesworkers, and 17.4 plasterers employed by the city of St. Paul or independent 17.5 school district No. 625, St. Paul, with coverage under a 17.6 collective bargaining agreement by the bricklayers and allied 17.7 craftworkers local 1 pension plan, the cement masons local 633 17.8 pension plan, the glaziers and glassworkers local L-1324 pension 17.9 plan, the painters and allied trades local 61 pension plan, or 17.10 the Twin Cities plasterers local 265 pension plan who were 17.11 either first employed after May 1, 2001, or if first employed 17.12 before May 2, 2001, elected to be excluded under section 6; and 17.13 (20) plumbers employed by the metropolitan airports 17.14 commission, with coverage under a collective bargaining 17.15 agreement by the plumbers local 34 pension plan who were either 17.16 first employed after May 1, 2001, or if first employed before 17.17 May 2, 2001, elected to be excluded under section 6. 17.18 Sec. 3. Minnesota Statutes 2000, section 353.01, 17.19 subdivision 6, is amended to read: 17.20 Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 17.21 subdivision" means a county, city, town, school district within 17.22 this state, or a department or unit of state government, or any 17.23 public body whose revenues are derived from taxation, fees, 17.24 assessments or from other sources. 17.25 (b) Governmental subdivision also means the public 17.26 employees retirement association, the league of Minnesota 17.27 cities, the association of metropolitan municipalities, public 17.28 hospitals owned or operated by, or an integral part of, a 17.29 governmental subdivision or governmental subdivisions, the 17.30 association of Minnesota counties, the metropolitan intercounty 17.31 association, the Minnesota municipal utilities association, the 17.32 metropolitan airports commission, the Minneapolis employees 17.33 retirement fund for employment initially commenced after June 17.34 30, 1979, the range association of municipalities and schools, 17.35 soil and water conservation districts,andeconomic development 17.36 authorities created or operating under sections 469.090 to 18.1 469.108, the Spring Lake Park fire department, incorporated, and 18.2 the Dakota county agricultural society. 18.3 (c) Governmental subdivision does not mean any municipal 18.4 housing and redevelopment authority organized under the 18.5 provisions of sections 469.001 to 469.047; or any port authority 18.6 organized under sections 469.048 to 469.089; or any hospital 18.7 district organized or reorganized prior to July 1, 1975, under 18.8 sections 447.31 to 447.37 or the successor of the district, nor 18.9 the Minneapolis community development agency. 18.10 Sec. 4. [383D.48] [METROPOLITAN INTER-COUNTY ASSOCIATION.] 18.11 Notwithstanding any other law to the contrary, Dakota 18.12 county may provide financial and accounting services, including 18.13 payroll management and records, to the Metropolitan Inter-county 18.14 Association. Notwithstanding this section, Metropolitan 18.15 Inter-county Association employees are not county employees for 18.16 any purpose. 18.17 Sec. 5. [383D.49] [AGRICULTURAL SOCIETY.] 18.18 Notwithstanding any other law to the contrary, Dakota 18.19 county may provide financial and accounting services, including 18.20 payroll management and records, to the Dakota county 18.21 agricultural society and may determine that employees of the 18.22 society are county employees for the purposes of section 471.61. 18.23 Dakota county agricultural society employees are not county 18.24 employees for any other purpose. 18.25 Sec. 6. [PUBLIC PENSION COVERAGE EXCLUSION FOR CERTAIN 18.26 TRADES PERSONNEL.] 18.27 Subdivision 1. [EXCLUSION ELECTION.] (a) A bricklayer, 18.28 allied craftworker, cement mason, glazier, glassworker, painter, 18.29 allied tradesworker, or plasterer who is employed by the city of 18.30 St. Paul or independent school district No. 625, St. Paul, on 18.31 the effective date of this section and who has pension coverage 18.32 under a collective bargaining agreement by the bricklayers and 18.33 allied craftworkers local 1 pension plan, the cement masons 18.34 local 633 pension plan, the glaziers and glassworkers local 18.35 L-1324 pension plan, the painters and allied trades local 61 18.36 pension plan, or the Twin Cities plasterers local 265 pension 19.1 plan may elect to be excluded from pension coverage by the 19.2 public employees retirement association. 19.3 (b) A plumber who is employed by the metropolitan airports 19.4 commission on the effective date of this section and who has 19.5 pension coverage under a collective bargaining agreement by the 19.6 plumbers local 34 pension plan may elect to be excluded from 19.7 pension coverage by the public employees retirement association. 19.8 (c) The exclusion election under this section must be made 19.9 in writing on a form prescribed by the executive director of the 19.10 public employees retirement association and must be filed with 19.11 the executive director. The exclusion election is irrevocable. 19.12 Authority to make the coverage exclusion expires on January 1, 19.13 2002. 19.14 Subd. 2. [ELIGIBILITY FOR MEMBER CONTRIBUTION REFUND.] A 19.15 person who has less than three years of allowable service in the 19.16 public employees retirement association and who elects the 19.17 pension coverage exclusion under subdivision 1 is entitled to 19.18 immediately apply for a refund under Minnesota Statutes, section 19.19 353.34, subdivisions 1 and 2, following the effective date of 19.20 the exclusion election. 19.21 Subd. 3. [DEFERRED ANNUITY ELIGIBILITY.] In lieu of the 19.22 refund under subdivision 2, a person who elects the pension 19.23 coverage exclusion under subdivision 1 is entitled to a deferred 19.24 retirement annuity under Minnesota Statutes, sections 353.34, 19.25 subdivision 3; and 353.71, subdivision 2, based on any length of 19.26 allowable service credit under Minnesota Statutes, section 19.27 353.01, subdivision 16, to the credit of the person as of the 19.28 date of the coverage exclusion election. 19.29 Sec. 7. [DAKOTA COUNTY AGRICULTURAL SOCIETY EMPLOYEE 19.30 PENSION CERTIFICATION.] 19.31 Notwithstanding section 6, the Dakota county board of 19.32 commissioners may certify to the executive director of the 19.33 public employees retirement association that full-time employees 19.34 of the Dakota county agricultural society are county employees 19.35 for purposes of retirement coverage under Minnesota Statutes, 19.36 chapter 353, which status must be accorded to all similarly 20.1 situated Dakota county agricultural society employees. 20.2 Sec. 8. [EFFECTIVE DATE; LOCAL APPROVAL.] 20.3 (a) Sections 1, 3, 4, and 5 are effective the day after the 20.4 governing body of Dakota county and its chief clerical officer 20.5 timely complete their compliance with Minnesota Statutes, 20.6 section 645.021, subdivisions 2 and 3. 20.7 (b) Section 7 is effective the day after the governing 20.8 board of Dakota county and its chief clerical officer timely 20.9 complete the compliance with Minnesota Statutes, section 20.10 645.021, subdivisions 2 and 3, and certification to the 20.11 executive director of the public employees retirement 20.12 association. 20.13 (c) Sections 2 and 6 are effective for bricklayers, allied 20.14 craftworkers, cement masons, glaziers, glassworkers, painters, 20.15 allied tradesworkers, and plasterers employed by the city of St. 20.16 Paul or independent school district No. 625, St. Paul, as 20.17 applicable, on the day following approval by majority vote of 20.18 the St. Paul city council or governing board of independent 20.19 school district No. 625, St. Paul, as applicable, and compliance 20.20 with Minnesota Statutes, section 645.021. 20.21 (d) Sections 2 and 6 are effective for plumbers employed by 20.22 the metropolitan airports commission on the day following 20.23 approval by majority vote of the metropolitan airports 20.24 commission and compliance with Minnesota Statutes, section 20.25 645.021. 20.26 ARTICLE 6 20.27 GENERALIZED SERVICE CREDIT PURCHASES 20.28 Section 1. Minnesota Statutes 2000, section 352.01, 20.29 subdivision 11, is amended to read: 20.30 Subd. 11. [ALLOWABLE SERVICE.] "Allowable service" means: 20.31 (1) Service by an employee for which on or before July 1, 20.32 1957, the employee was entitled to allowable service credit on 20.33 the records of the system by reason of employee contributions in 20.34 the form of salary deductions, payments in lieu of salary 20.35 deductions, or in any other manner authorized by Minnesota 20.36 Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239. 21.1 (2) Service by an employee for which on or before July 1, 21.2 1961, the employee chose to obtain credit for service by making 21.3 payments to the fund under Minnesota Statutes 1961, section 21.4 352.24. 21.5 (3) Except as provided in clauses (8) and (9), service by 21.6 an employee after July 1, 1957, for any calendar month in which 21.7 the employee is paid salary from which deductions are made, 21.8 deposited, and credited in the fund, including deductions made, 21.9 deposited, and credited as provided in section 352.041. 21.10 (4) Except as provided in clauses (8) and (9), service by 21.11 an employee after July 1, 1957, for any calendar month for which 21.12 payments in lieu of salary deductions are made, deposited, and 21.13 credited in the fund, as provided in section 352.27 and 21.14 Minnesota Statutes 1957, section 352.021, subdivision 4. 21.15 For purposes of clauses (3) and (4), except as provided in 21.16 clauses (8) and (9), any salary paid for a fractional part of 21.17 any calendar month, including the month of separation from state 21.18 service, is deemed the compensation for the entire calendar 21.19 month. 21.20 (5) The period of absence from their duties by employees 21.21 who are temporarily disabled because of injuries incurred in the 21.22 performance of duties and for which disability the state is 21.23 liable under the workers' compensation law until the date 21.24 authorized by the director for the commencement of payments of a 21.25 total and permanent disability benefit from the retirement fund. 21.26 (6) Service covered by a refund repaid as provided in 21.27 section 352.23 or 352D.05, subdivision 4, except service 21.28 rendered as an employee of the adjutant general for which the 21.29 person has credit with the federal civil service retirement 21.30 system. 21.31 (7) Service before July 1, 1978, by an employee of the 21.32 transit operating division of the metropolitan transit 21.33 commission or by an employee on an authorized leave of absence 21.34 from the transit operating division of the metropolitan transit 21.35 commission who is employed by the labor organization which is 21.36 the exclusive bargaining agent representing employees of the 22.1 transit operating division, which was credited by the 22.2 metropolitan transit commission-transit operating division 22.3 employees retirement fund or any of its predecessor plans or 22.4 funds as past, intermediate, future, continuous, or allowable 22.5 service as defined in the metropolitan transit 22.6 commission-transit operating division employees retirement fund 22.7 plan document in effect on December 31, 1977. 22.8 (8) Service after July 1, 1983, by an employee who is 22.9 employed on a part-time basis for less than 50 percent of full 22.10 time, for which the employee is paid salary from which 22.11 deductions are made, deposited, and credited in the fund, 22.12 including deductions made, deposited, and credited as provided 22.13 in section 352.041 or for which payments in lieu of salary 22.14 deductions are made, deposited, and credited in the fund as 22.15 provided in section 352.27 shall be credited on a fractional 22.16 basis either by pay period, monthly, or annually based on the 22.17 relationship that the percentage of salary earned bears to a 22.18 full-time salary, with any salary paid for the fractional 22.19 service credited on the basis of the rate of salary applicable 22.20 for a full-time pay period, month, or a full-time year. For 22.21 periods of part-time service that is duplicated service credit, 22.22 section 356.30, subdivision 1, clauses (i) and (j), govern. 22.23 Allowable service determined and credited on a fractional 22.24 basis shall be used in calculating the amount of benefits 22.25 payable, but service as determined on a fractional basis must 22.26 not be used in determining the length of service required for 22.27 eligibility for benefits. 22.28 (9) Any period of authorized leave of absence without pay 22.29 that does not exceed one year and for which the employee 22.30 obtained credit by payment to the fund in lieu of salary 22.31 deductions. To obtain credit, the employee shall pay an amount 22.32 equal to the employee and employer contribution rate in section 22.33 352.04, subdivisions 2 and 3, multiplied by the employee's 22.34 hourly rate of salary on the date of return from leave of 22.35 absence and by the days and months of the leave of absence 22.36 without pay for which the employee wants allowable service 23.1 credit. The employing department, at its option, may pay the 23.2 employer amount on behalf of its employees. Payments made under 23.3 this clause must include interest at an annual rate of 8.5 23.4 percent compounded annually from the date of termination of the 23.5 leave of absence to the date payment is made unless payment is 23.6 completed within one year of the return from leave of absence. 23.7 (10) A period purchased under section 356.555. 23.8 Sec. 2. Minnesota Statutes 2000, section 352B.01, 23.9 subdivision 3, is amended to read: 23.10 Subd. 3. [ALLOWABLE SERVICE.] (a) "Allowable service" 23.11 means: 23.12 (1) for members defined in subdivision 2, clause (a), 23.13 monthly service is granted for any month for which payments have 23.14 been made to the state patrol retirement fund, and 23.15 (2) for members defined in subdivision 2, clauses (b) and 23.16 (c), service for which payments have been made to the state 23.17 patrol retirement fund, service for which payments were made to 23.18 the state police officers retirement fund after June 30, 1961, 23.19 and all prior service which was credited to a member for service 23.20 on or before June 30, 1961. 23.21 (b) Allowable service also includes any period of absence 23.22 from duty by a member who, by reason of injury incurred in the 23.23 performance of duty, is temporarily disabled and for which 23.24 disability the state is liable under the workers' compensation 23.25 law, until the date authorized by the executive director for 23.26 commencement of payment of a disability benefit or return to 23.27 employment. 23.28 (c) Allowable service also includes a period purchased 23.29 under section 356.555. 23.30 Sec. 3. Minnesota Statutes 2000, section 353.01, 23.31 subdivision 16, is amended to read: 23.32 Subd. 16. [ALLOWABLE SERVICE.] (a) "Allowable service" 23.33 means service during years of actual membership in the course of 23.34 which employee contributions were made, periods covered by 23.35 payments in lieu of salary deductions under section 353.35, and 23.36 service in years during which the public employee was not a 24.1 member but for which the member later elected, while a member, 24.2 to obtain credit by making payments to the fund as permitted by 24.3 any law then in effect. 24.4 (b) "Allowable service" also means a period of authorized 24.5 leave of absence with pay from which deductions for employee 24.6 contributions are made, deposited, and credited to the fund. 24.7 (c) "Allowable service" also means a period of authorized 24.8 leave of absence without pay that does not exceed one year, and 24.9 during or for which a member obtained credit by payments to the 24.10 fund made in place of salary deductions, provided that the 24.11 payments are made in an amount or amounts based on the member's 24.12 average salary on which deductions were paid for the last six 24.13 months of public service, or for that portion of the last six 24.14 months while the member was in public service, to apply to the 24.15 period in either case immediately preceding commencement of the 24.16 leave of absence. If the employee elects to pay employee 24.17 contributions for the period of any leave of absence without 24.18 pay, or for any portion of the leave, the employee shall also, 24.19 as a condition to the exercise of the election, pay to the fund 24.20 an amount equivalent to both the required employer and 24.21 additional employer contributions for the employee. The payment 24.22 must be made within one year from the expiration of the leave of 24.23 absence or within 20 days after termination of public service 24.24 under subdivision 11a. The employer by appropriate action of 24.25 its governing body, made a part of its official records, before 24.26 the date of the first payment of the employee contribution, may 24.27 certify to the association in writing its commitment to pay the 24.28 employer and additional employer contributions from the proceeds 24.29 of a tax levy made under section 353.28. Payments under this 24.30 paragraph must include interest at an annual rate of 8.5 percent 24.31 compounded annually from the date of the termination of the 24.32 leave of absence to the date payment is made. An employee shall 24.33 return to public service and receive a minimum of three months 24.34 of allowable service to be eligible to pay employee and employer 24.35 contributions for a subsequent authorized leave of absence 24.36 without pay. 25.1 (d) "Allowable service" also means a periodic, repetitive 25.2 leave that is offered to all employees of a governmental 25.3 subdivision. The leave program may not exceed 208 hours per 25.4 annual normal work cycle as certified to the association by the 25.5 employer. A participating member obtains service credit by 25.6 making employee contributions in an amount or amounts based on 25.7 the member's average salary that would have been paid if the 25.8 leave had not been taken. The employer shall pay the employer 25.9 and additional employer contributions on behalf of the 25.10 participating member. The employee and the employer are 25.11 responsible to pay interest on their respective shares at the 25.12 rate of 8.5 percent a year, compounded annually, from the end of 25.13 the normal cycle until full payment is made. An employer shall 25.14 also make the employer and additional employer contributions, 25.15 plus 8.5 percent interest, compounded annually, on behalf of an 25.16 employee who makes employee contributions but terminates public 25.17 service. The employee contributions must be made within one 25.18 year after the end of the annual normal working cycle or within 25.19 20 days after termination of public service, whichever is 25.20 sooner. The association shall prescribe the manner and forms to 25.21 be used by a governmental subdivision in administering a 25.22 periodic, repetitive leave. 25.23 (e) "Allowable service" also means a period during which a 25.24 member is on an authorized sick leave of absence, without pay, 25.25 limited to one year. An employee who has received one year of 25.26 allowable service shall return to public service and receive a 25.27 minimum of three months of allowable service to receive 25.28 allowable service for a subsequent authorized sick leave of 25.29 absence. 25.30 (f) "Allowable service" also means an authorized temporary 25.31 layoff under subdivision 12, limited to three months allowable 25.32 service per authorized temporary layoff in one calendar year. 25.33 An employee who has received the maximum service allowed for an 25.34 authorized temporary layoff shall return to public service and 25.35 receive a minimum of three months of allowable service to 25.36 receive allowable service for a subsequent authorized temporary 26.1 layoff. 26.2 (g) Notwithstanding any law to the contrary, "allowable 26.3 service" also means a parental leave. The association shall 26.4 grant a maximum of two months service credit for a parental 26.5 leave, within six months after the birth or adoption, upon 26.6 documentation from the member's governmental subdivision or 26.7 presentation of a birth certificate or other evidence of birth 26.8 or adoption to the association. 26.9 (h) "Allowable service" also means a period during which a 26.10 member is on an authorized leave of absence to enter military 26.11 service, provided that the member returns to public service upon 26.12 discharge from military service under section 192.262 and pays 26.13 into the fund employee contributions based upon the employee's 26.14 salary at the date of return from military service. Payment 26.15 must be made within five years of the date of discharge from the 26.16 military service. The amount of these contributions must be in 26.17 accord with the contribution rates and salary limitations, if 26.18 any, in effect during the leave, plus interest at an annual rate 26.19 of 8.5 percent compounded annually from the date of return to 26.20 public service to the date payment is made. The matching 26.21 employer contribution and additional employer contribution under 26.22 section 353.27, subdivisions 3 and 3a, must be paid by the 26.23 governmental subdivision employing the member upon return to 26.24 public service if the member makes the employee contributions. 26.25 The governmental subdivision involved may appropriate money for 26.26 those payments. A member may not receive credit for a voluntary 26.27 extension of military service at the instance of the member 26.28 beyond the initial period of enlistment, induction, or call to 26.29 active duty. 26.30 (i) For calculating benefits under sections 353.30, 353.31, 26.31 353.32, and 353.33 for state officers and employees displaced by 26.32 the Community Corrections Act, chapter 401, and transferred into 26.33 county service under section 401.04, "allowable service" means 26.34 combined years of allowable service as defined in paragraphs (a) 26.35 to (i) and section 352.01, subdivision 11. 26.36 (j) For a public employee who has prior service covered by 27.1 a local police or firefighters relief association that has 27.2 consolidated with the public employees retirement association or 27.3 to which section 353.665 applies, and who has elected the type 27.4 of benefit coverage provided by the public employees police and 27.5 fire fund either under section 353A.08 following the 27.6 consolidation or under section 353.665, subdivision 4, 27.7 "applicable service" is a period of service credited by the 27.8 local police or firefighters relief association as of the 27.9 effective date of the consolidation based on law and on bylaw 27.10 provisions governing the relief association on the date of the 27.11 initiation of the consolidation procedure. 27.12 (k) "Allowable service" also means a period purchased under 27.13 section 356.555. 27.14 Sec. 4. Minnesota Statutes 2000, section 354.534, 27.15 subdivision 1, is amended to read: 27.16 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) A 27.17 teacher who has at least three years of allowable service credit 27.18 with the teachers retirement association is entitled to purchase 27.19 up to ten years of allowable and formula service credit for 27.20 out-of-state teaching service by making payment under section 27.21 356.55, provided the out-of-state teaching service was performed 27.22 for an educational institution established and operated by 27.23 anotherstate, governmental subdivision of another state, or the27.24federal governmentgovernmental jurisdiction and the teacher is 27.25 not entitled to receive a current or deferred age and service 27.26 retirement annuity or disability benefit and has not purchased 27.27 service credit from another defined benefit public employee 27.28 pension plan for that out-of-state teaching service. 27.29 (b) For purposes of paragraph (a), "another governmental 27.30 jurisdiction" means: 27.31 (1) another state of the United States; 27.32 (2) a governmental subdivision of another state of the 27.33 United States; 27.34 (3) the federal government; 27.35 (4) a federally recognized American Indian tribe; or 27.36 (5) a country other than the United States. 28.1 Sec. 5. Minnesota Statutes 2000, section 354.536, 28.2 subdivision 1, is amended to read: 28.3 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A 28.4 teacher who has at least three years of allowable service credit 28.5 with the teachers retirement association is entitled to purchase 28.6 up to ten years of allowable and formula service credit for 28.7 developmental achievement center, nonprofit community-based 28.8 corporation, private, or parochial school teaching service by 28.9 making payment under section 356.55, provided that the teacher 28.10 is not entitled to receive a current or deferred age and service 28.11 retirement annuity or disability benefit from the applicable 28.12 employer-sponsored pension plan and has not purchased service 28.13 credit from the applicable defined benefit employer-sponsored 28.14 pension plan for that service. 28.15 Sec. 6. Minnesota Statutes 2000, section 354.539, is 28.16 amended to read: 28.17 354.539 [USE OF COLLEGE SUPPLEMENTAL RETIREMENT FUNDS TO 28.18 PURCHASE SERVICE CREDIT.] 28.19 (a) Unless prohibited by or subject to a penalty under 28.20 federal law, a teacher who is a participant in the college 28.21 supplemental retirement plan established under chapter 354C may 28.22 utilize the teacher's supplemental plan account to purchase 28.23 service credit under sections 354.53, 354.533, 354.534, 354.535, 28.24 354.536, 354.537,and354.538, 354.541, and 354.542 or to repay 28.25 a refund under section 354.50. 28.26 (b) At the request of a member, if determined by the 28.27 executive director to be eligible to purchase service credit, 28.28 the executive director shall notify the board of the Minnesota 28.29 state colleges and universities system of the cost of the 28.30 purchase and shall request the transfer of funds from the 28.31 member's college supplemental retirement account to the teachers 28.32 retirement association. Upon receipt of the full prior service 28.33 credit purchase payment amount, the teachers retirement 28.34 association shall grant the requested allowable and formula 28.35 service credit. 28.36 Sec. 7. [354.541] [PRIOR UNIVERSITY OF MINNESOTA TEACHING 29.1 SERVICE CREDIT PURCHASE.] 29.2 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A 29.3 teacher who has at least three years of allowable service credit 29.4 with the teachers retirement association is entitled to purchase 29.5 up to ten years of allowable and formula service credit for 29.6 University of Minnesota teaching service by making payment under 29.7 section 356.55, provided the teacher is not entitled to receive 29.8 a current or deferred age and service retirement annuity or 29.9 disability benefit and has not purchased service credit from 29.10 another defined benefit public employee pension plan for that 29.11 University of Minnesota teaching service. 29.12 Subd. 2. [APPLICATION AND DOCUMENTATION.] A teacher who 29.13 desires to purchase service credit under subdivision 1 must 29.14 apply with the executive director to make the purchase. The 29.15 application must include all necessary documentation of the 29.16 teacher's qualifications to make the purchase, signed written 29.17 permission to allow the executive director to request and 29.18 receive necessary verification of applicable facts and 29.19 eligibility requirements, and any other relevant information 29.20 that the executive director may require. Payment must be made 29.21 before the teacher's effective date of retirement. 29.22 Subd. 3. [SERVICE CREDIT GRANT.] Allowable and formula 29.23 service credit for the purchase period must be granted by the 29.24 teachers retirement association to the purchasing teacher on 29.25 receipt of the purchase payment amount. 29.26 Sec. 8. [354.542] [PRIOR TEACHING SERVICE CREDIT PURCHASE 29.27 BY IRAP MEMBERS WITH DEFERRED TEACHERS RETIREMENT ASSOCIATION 29.28 CREDIT.] 29.29 A person in covered employment under section 354B.20, 29.30 subdivision 4, who is a participant in the individual retirement 29.31 account plan authorized by chapter 354B and who has at least 29.32 three years of allowable service credit with the teachers 29.33 retirement association may purchase service credit as provided 29.34 in sections 354.533 to 354.538 and 354.541. 29.35 Sec. 9. Minnesota Statutes 2000, section 354A.098, 29.36 subdivision 1, is amended to read: 30.1 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) A 30.2 teacher who has at least three years of allowable service credit 30.3 with one of the retirement fund associations under this chapter 30.4 and who rendered out-of-state teaching service for an 30.5 educational institution established and operated by another 30.6state, governmental subdivision of another state, or the federal30.7governmentgovernmental entity specified in paragraph (b) is 30.8 entitled to purchase up to ten years of allowable service credit 30.9 for that out-of-state service by making payment under section 30.10 356.55, provided the teacher is not entitled to receive a 30.11 current or deferred age and service retirement annuity or 30.12 disability benefit and has not purchased service credit from 30.13 another defined benefit public employee pension plan for that 30.14 out-of-state teaching service. Payment must be made before the 30.15 teacher's effective date of retirement. 30.16 (b) An eligible governmental entity for purposes of 30.17 paragraph (a) is: 30.18 (1) another state of the United States; 30.19 (2) a governmental subdivision of another state of the 30.20 United States; 30.21 (3) the federal government; 30.22 (4) a federally recognized American Indian tribe; or 30.23 (5) a public education institution in a foreign country. 30.24 Sec. 10. Minnesota Statutes 2000, section 354A.101, 30.25 subdivision 1, is amended to read: 30.26 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A 30.27 teacher who has at least three years of allowable service credit 30.28 with the teachers retirement fund association is entitled to 30.29 purchase up to ten years of allowable service credit 30.30 for developmental achievement center, nonprofit community-based 30.31 corporation, private, or parochial school teaching service by 30.32 making payment under section 356.55, provided that the teacher 30.33 is not entitled to receive a current or deferred age and service 30.34 retirement annuity or disability benefit from the applicable 30.35 employer-sponsored pension plan and has not purchased service 30.36 credit from the applicable defined benefit employer-sponsored 31.1 pension plan for that service. 31.2 Sec. 11. Minnesota Statutes 2000, section 354A.106, is 31.3 amended to read: 31.4 354A.106 [USE OF COLLEGE SUPPLEMENTAL RETIREMENT FUNDS TO 31.5 PURCHASE SERVICE CREDIT.] 31.6 (a) Unless prohibited by or subject to a penalty under 31.7 federal law, a teacher who is a participant in the college 31.8 supplemental retirement plan established under chapter 354C may 31.9 utilize the teacher's supplemental plan account to purchase 31.10 service credit under sections 354A.097, 354A.098, 354A.099, 31.11 354A.101, 354A.102, 354A.103,and354A.104, 354A.107, and 31.12 354A.108, or to repay a refund under section 354A.38. 31.13 (b) At the request of a member, if determined by the 31.14 executive director of the applicable teachers retirement fund 31.15 association to be eligible to purchase service credit, the 31.16 executive director shall notify the board of the Minnesota state 31.17 colleges and universities system of the cost of the purchase and 31.18 shall request the transfer of funds from the member's college 31.19 supplemental retirement account to the applicable teachers 31.20 retirement fund association. Upon receipt of the full prior 31.21 service credit purchase payment amount, the applicable teachers 31.22 retirement fund association shall grant the requested allowable 31.23 and formula service credit. 31.24 Sec. 12. [354A.107] [PRIOR UNIVERSITY OF MINNESOTA 31.25 TEACHING SERVICE CREDIT PURCHASE.] 31.26 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A 31.27 teacher who has at least three years of allowable service credit 31.28 with the teachers retirement fund association is entitled to 31.29 purchase up to ten years of allowable service credit for 31.30 University of Minnesota teaching service by making payment under 31.31 section 356.55, provided the teacher is not entitled to receive 31.32 a current or deferred age and service retirement annuity or 31.33 disability benefit and has not purchased service credit from 31.34 another defined benefit public employee pension plan for that 31.35 University of Minnesota teaching service. 31.36 Subd. 2. [APPLICATION AND DOCUMENTATION.] A teacher who 32.1 desires to purchase service credit under subdivision 1 must 32.2 apply with the executive director to make the purchase. The 32.3 application must include all necessary documentation of the 32.4 teacher's qualifications to make the purchase, signed written 32.5 permission to allow the executive director to request and 32.6 receive necessary verification of applicable facts and 32.7 eligibility requirements, and any other relevant information 32.8 that the executive director may require. Payment must be made 32.9 before the teacher's effective date of retirement. 32.10 Subd. 3. [SERVICE CREDIT GRANT.] Allowable service credit 32.11 for the purchase period must be granted by the teachers 32.12 retirement association to the purchasing teacher on receipt of 32.13 the purchase payment amount. 32.14 Sec. 13. [354A.108] [PRIOR TEACHING SERVICE CREDIT 32.15 PURCHASE BY IRAP MEMBERS WITH DEFERRED TEACHERS RETIREMENT 32.16 ASSOCIATION CREDIT.] 32.17 A teacher who is a participant in the individual retirement 32.18 account plan authorized by chapter 354B and who has at least 32.19 three years of allowable service credit with a teachers 32.20 retirement fund association may purchase service credit as 32.21 provided in sections 354A.091 to 354A.099 and 354A.101 to 32.22 354A.107. 32.23 Sec. 14. Minnesota Statutes 2000, section 356.55, 32.24 subdivision 7, is amended to read: 32.25 Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 32.26 PROCEDURE.] (a) This section expires and is repealed on July 32.27 1,20012003. 32.28 (b) Authority for any public pension plan to accept a prior 32.29 service credit payment calculated in a timely fashion under this 32.30 section expires on October 1,20012003. 32.31 Sec. 15. [356.555] [PARENTAL OR FAMILY LEAVE SERVICE 32.32 CREDIT PURCHASE.] 32.33 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZATION.] (a) 32.34 Notwithstanding any provision to the contrary of the laws 32.35 governing a plan enumerated in subdivision 4, a member of the 32.36 pension plan who has at least three years of allowable service 33.1 covered by the applicable pension plan and who was granted by 33.2 the employer a parental leave of absence as defined in paragraph 33.3 (b), or who was granted by the employer a family leave of 33.4 absence as defined in paragraph (c), or who had a parental- or 33.5 family-related break in employment, as defined in paragraph (d), 33.6 for which the person did not previously receive service credit 33.7 or for which the person did not receive or purchase service 33.8 credit from another defined benefit public employee pension 33.9 plan, is entitled to purchase the actual period of the leave or 33.10 of the break in service, up to five years, of allowable service 33.11 credit in the applicable retirement plan. The purchase payment 33.12 amount is governed by section 356.55. 33.13 (b) For purposes of this section, a parental leave of 33.14 absence is a temporary period of interruption or of separation 33.15 from active employment for the purposes of handling maternity or 33.16 paternity duties that has been approved by the employing unit 33.17 and that includes the right of reinstatement to employment. 33.18 (c) For purposes of this section, a family leave of absence 33.19 is a family leave under United States Code, title 42, section 33.20 12631, as amended. 33.21 (d) For purposes of this section, a parental- or 33.22 family-related break in employment is a period following a 33.23 termination of active employment primarily for the purpose of 33.24 the birth of a child, the adoption of a child, or the provision 33.25 of care to a near relative or in-law, after which the person 33.26 returned to the prior employing unit or an employing unit 33.27 covered by the same pension plan that provided retirement 33.28 coverage immediately prior to the termination of employment. 33.29 Subd. 2. [APPLICATION AND DOCUMENTATION.] A person who 33.30 desires to purchase service credit under subdivision 1 must 33.31 apply for the service credit purchase with the chief 33.32 administrative officer of the enumerated pension plan. The 33.33 application must include all necessary documentation of the 33.34 qualifications of the person to make the purchase, signed 33.35 written permission to allow the chief administrative officer to 33.36 request and receive necessary verification of all applicable 34.1 facts and eligibility requirements, and any other relevant 34.2 information that the chief administrative officer may require. 34.3 Subd. 3. [SERVICE CREDIT GRANT.] Allowable service credit 34.4 in the applicable enumerated pension plan for the purchase 34.5 period must be granted to the purchaser upon receipt of the 34.6 purchase payment amount calculated under section 356.55. 34.7 Payment of the purchase price must be made before the person 34.8 retires. 34.9 Subd. 4. [COVERED PENSION PLANS.] This section applies to 34.10 the following pension plans: 34.11 (1) general state employees retirement plan governed by 34.12 chapter 352; 34.13 (2) correctional state employees retirement plan governed 34.14 by chapter 352; 34.15 (3) general public employees retirement plan governed by 34.16 chapter 353; 34.17 (4) public employees police and fire plan governed by 34.18 chapter 353; 34.19 (5) Minneapolis employees retirement plan governed by 34.20 chapter 422A; 34.21 (6) Minneapolis police relief association governed by 34.22 chapter 423B; and 34.23 (7) Minneapolis fire department relief association governed 34.24 by sections 69.25 to 69.53 and augmented by Laws 1959, chapters 34.25 213, 491, and 568, and other special local legislation. 34.26 Sec. 16. Minnesota Statutes 2000, section 422A.155, is 34.27 amended to read: 34.28 422A.155 [DETERMINATION OF SERVICE CREDIT.] 34.29 (a) Notwithstanding the provisions of section 422A.15, 34.30 subdivision 1, no employee of the contributing class of the 34.31 Minneapolis employees retirement fund shall be entitled to 34.32 receive a year of service credit during the employee's final 34.33 year of service unless the employee is employed and has received 34.34 compensation from the city of Minneapolis or other applicable 34.35 employing unit during each of the calendar months making up the 34.36 year for which the employee would usually be employed. Any 35.1 employee of the contributing class who is employed and receives 35.2 compensation in fewer than the usual number of calendar months 35.3 during the final year of service shall receive credit for that 35.4 portion of a year that the employee's completed months of 35.5 employment and receipt of compensation bears to the usual number 35.6 of months which the employee would usually be employed. 35.7 (b) Notwithstanding any provision of this chapter to the 35.8 contrary, service credit also means a period purchased under 35.9 section 356.555. 35.10 Sec. 17. Minnesota Statutes 2000, section 423B.01, is 35.11 amended by adding a subdivision to read: 35.12 Subd. 3a. [ALLOWABLE SERVICE CREDIT.] "Allowable service 35.13 credit" means: 35.14 (1) service rendered as an active member; 35.15 (2) service as an elected public official under section 35.16 423B.03; 35.17 (3) military service credited under section 423B.09, 35.18 subdivision 3; and 35.19 (4) a period of service purchased under section 356.555. 35.20 Sec. 18. [MINNEAPOLIS FIRE DEPARTMENT RELIEF ASSOCIATION; 35.21 PARENTAL LEAVE PURCHASE.] 35.22 Notwithstanding any provision of Minnesota Statutes, 35.23 sections 69.25 to 69.53; Laws 1959, chapters 213, 491, and 568; 35.24 or any other special local law governing the Minneapolis fire 35.25 department relief association to the contrary, service credit 35.26 for the purposes of calculating service pensions, disability 35.27 benefits, or survivor benefits includes a period purchased under 35.28 Minnesota Statutes, section 356.555. 35.29 Sec. 19. [EXPIRATION DATE.] 35.30 (a) The amendments in sections 1, 2, 3, 14, 15, 16, 17, and 35.31 18 expire on May 16, 2003. 35.32 (b) Sections 8 and 13 expire on May 16, 2002. 35.33 Sec. 20. [EFFECTIVE DATE.] 35.34 (a) Sections 5 and 9 are effective the day following final 35.35 enactment. 35.36 (b) Sections 1 to 4, 6 to 8, and 10 to 19 are effective on 36.1 July 1, 2001. 36.2 ARTICLE 7 36.3 MINNESOTA STATE COLLEGES AND 36.4 UNIVERSITIES SYSTEM RETIREMENT PROVISIONS 36.5 Section 1. Minnesota Statutes 2000, section 354.41, 36.6 subdivision 4, is amended to read: 36.7 Subd. 4. [MEMBERSHIP ELIGIBILITY FOR LABOR ORGANIZATION 36.8 EMPLOYEES.] (a) A person who is a member on an authorized leave 36.9 of absence and is employed as an employee or officer bythe36.10Minnesota federation of teachers or its affiliated branches36.11within the state, the Minnesota education association, the36.12Minnesota association of school principals, the Minnesota36.13association of secondary school principals or the Minnesotaa 36.14 labor organization that is the exclusive bargaining agent or the 36.15 labor organization's state affiliate representing teachers 36.16 covered by this chapter or by an association of school 36.17 administrators may elect to be a coordinated member of the 36.18 association based on that employment, subject to the limitations 36.19 set forth in subdivisions 4a and 4b. However, no person is 36.20 entitled to membership under this section if the person also is 36.21 a member of a teachers retirement association in a city of the 36.22 first class organized under chapter 354A for the same period of 36.23 service. 36.24 (b) The election must be made within 90 days of commencing 36.25 employment by the labor organization. 36.26 Sec. 2. [354B.32] [TRANSFER OF FUNDS TO IRAP.] 36.27 A participant in the individual retirement account plan 36.28 established in this chapter who has less than ten years of 36.29 allowable service under the teachers retirement association or 36.30 the teachers retirement fund association may elect to transfer 36.31 an amount equal to the participant's accumulated member 36.32 contributions to the teachers retirement association or the 36.33 teachers retirement fund association, plus compound interest at 36.34 the rate of six percent per annum, to the individual retirement 36.35 account plan. The transfers are irrevocable fund to fund 36.36 transfers, and in no event may the participant receive direct 37.1 payment of the money transferred prior to retirement. If a 37.2 participant elects the contribution transfer, all of the 37.3 participant's allowable and formula service credit in the 37.4 teachers retirement association or the teachers retirement fund 37.5 association associated with the transferred amount is forfeited. 37.6 The executive director of the teachers retirement 37.7 association and the chief administrative officers of the 37.8 teachers retirement fund associations, in cooperation with the 37.9 chancellor of the Minnesota state colleges and universities 37.10 system, shall notify participants who are eligible to transfer 37.11 of their right to transfer and the amount that they are eligible 37.12 to transfer, and shall, upon request, provide forms to implement 37.13 the transfer. The chancellor of the Minnesota state colleges 37.14 and universities shall assist the teachers retirement 37.15 association and the teachers retirement fund associations in 37.16 developing transfer forms and in implementing the transfers. 37.17 Authority to elect a transfer under this section expires on 37.18 July 1, 2004. 37.19 Sec. 3. [REPEALER.] 37.20 Minnesota Statutes 2000, section 354.41, subdivision 9, is 37.21 repealed. 37.22 Sec. 4. [EFFECTIVE DATE.] 37.23 (a) Sections 1 to 3 are effective the day following final 37.24 enactment. 37.25 (b) Coverage under section 1 applies to employment as an 37.26 officer of the interfaculty organization on or after July 1, 37.27 1996. 37.28 ARTICLE 8 37.29 SUPPLEMENTAL PENSION PLAN PROVISIONS 37.30 Section 1. Minnesota Statutes 2000, section 356.24, 37.31 subdivision 1, is amended to read: 37.32 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful 37.33 for a school district or other governmental subdivision or state 37.34 agency to levy taxes for, or contribute public funds to a 37.35 supplemental pension or deferred compensation plan that is 37.36 established, maintained, and operated in addition to a primary 38.1 pension program for the benefit of the governmental subdivision 38.2 employees other than: 38.3 (1) to a supplemental pension plan that was established, 38.4 maintained, and operated before May 6, 1971; 38.5 (2) to a plan that provides solely for group health, 38.6 hospital, disability, or death benefits; 38.7 (3) to the individual retirement account plan established 38.8 by chapter 354B; 38.9 (4) to a plan that provides solely for severance pay under 38.10 section 465.72 to a retiring or terminating employee; 38.11 (5) for employees other than personnel employed by the 38.12 state university board or the community college board and 38.13 covered by the board of trustees of the Minnesota state colleges 38.14 and universities supplemental retirement plan under chapter 38.15 354C, if provided for in a personnel policy of the public 38.16 employer or in the collective bargaining agreement between the 38.17 public employer and the exclusive representative of public 38.18 employees in an appropriate unit, in an amount matching employee 38.19 contributions on a dollar for dollar basis, but not to exceed an 38.20 employer contribution of $2,000 a year per employee; 38.21 (i) to the state of Minnesota deferred compensation plan 38.22 under section 352.96; or 38.23 (ii) in payment of the applicable portion of the 38.24 contribution made to any investment eligible under section 38.25 403(b) of the Internal Revenue Code, if the employing unit has 38.26 complied with any applicable pension plan provisions of the 38.27 Internal Revenue Code with respect to the tax-sheltered annuity 38.28 program during the preceding calendar year;or38.29 (6) for personnel employed by the state university board or 38.30 the community college board and not covered by clause (5), to 38.31 the supplemental retirement plan under chapter 354C, if provided 38.32 for in a personnel policy or in the collective bargaining 38.33 agreement of the public employer with the exclusive 38.34 representative of the covered employees in an appropriate unit, 38.35 in an amount matching employee contributions on a dollar for 38.36 dollar basis, but not to exceed an employer contribution of 39.1 $2,700 a year for each employee; or 39.2 (7) to the laborer's national industrial pension fund or to 39.3 the international union of operating engineers pension fund, as 39.4 applicable, for the employees of a governmental subdivision who 39.5 are covered by a collective bargaining agreement that provides 39.6 for coverage by the applicable fund and that sets forth a fund 39.7 contribution rate, but not to exceed an employer contribution of 39.8 $2,000 per year per employee. 39.9 ARTICLE 9 39.10 MINNEAPOLIS POLICE RELIEF ASSOCIATION 39.11 MAIL-IN BALLOTING OR VOTING PROVISIONS 39.12 Section 1. Minnesota Statutes 2000, section 423B.05, is 39.13 amended by adding a subdivision to read: 39.14 Subd. 4. [RIGHT TO PARTICIPATE BY MAIL-IN BALLOT.] Active 39.15 members, retired members, and surviving spouse members of the 39.16 relief association have the right to participate in the election 39.17 of board members of the association by mail-in ballot. 39.18 Sec. 2. Minnesota Statutes 2000, section 423B.05, is 39.19 amended by adding a subdivision to read: 39.20 Subd. 5. [MAIL-IN REFERENDUM ON VOTING BY MAIL.] (a) The 39.21 board of the association are authorized to submit the following 39.22 question in a binding member referendum to be conducted by mail: 39.23 "Shall the bylaws of the Minneapolis police relief 39.24 association be amended to allow future proposed 39.25 amendments to the bylaws of the relief association 39.26 to be approved by a vote of relief association members 39.27 by mail? 39.28 Yes ....... 39.29 No ........" 39.30 (b) The board of the relief association shall conduct the 39.31 referendum by mailing a printed copy of the referendum question 39.32 and of the ballot to all active members, retired members, and 39.33 surviving spouse members in accordance with the voting 39.34 procedures that the board of the relief association used in the 39.35 most recent board election prior to March 1, 2001. 39.36 (c) Before submitting the referendum question to a vote by 40.1 the relief association membership, the relief association board 40.2 shall solicit the opinions of relief association members for the 40.3 question and against the question. The solicitation for member 40.4 comments must be included in the next regular relief association 40.5 communication to relief association members following the 40.6 proposal of the bylaw amendment and on the Internet Web site of 40.7 the relief association. The comment period continues for 30 40.8 days. The executive director of the relief association shall 40.9 prepare a summary of the comments of relief association members 40.10 for and against the question in a fair and impartial manner. A 40.11 draft of the summary document must be placed on the Internet Web 40.12 site of the relief association for five days. If a relief 40.13 association board member challenges the objectivity of the draft 40.14 summary, the draft summary must be reviewed by a neutral third 40.15 party. The neutral third party must be an accredited 40.16 professional mediator. The relief association executive 40.17 director shall include the recommendations of the neutral third 40.18 party in the final summary document. The written summary 40.19 prepared by the relief association executive director must be 40.20 included with the question and the ballot mailed to relief 40.21 association members. 40.22 (d) Balloting procedures must be designed to maintain 40.23 secrecy as to the identity of voting members. The receipt of 40.24 returned ballots and the counting of those ballots must be 40.25 conducted by an accounting firm designated by the relief 40.26 association board to perform those functions. 40.27 (e) For adoption, the question must receive favorable votes 40.28 from two-thirds of the relief association members who return 40.29 ballots on the question. 40.30 (f) If the question in paragraph (a) is approved in the 40.31 referendum, future bylaw amendments must be conducted in the 40.32 same manner as provided in this subdivision. 40.33 Sec. 3. [EFFECTIVE DATE.] 40.34 (a) Sections 1 and 2 are effective the day following final 40.35 enactment. 40.36 (b) If the referendum question in section 2 is approved, no 41.1 proposed bylaw amendment may be submitted for approval by mail 41.2 until January 1, 2002. 41.3 ARTICLE 10 41.4 LOCAL POLICE AND PAID FIRE PENSION PLANS 41.5 Section 1. [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 41.6 HOC POSTRETIREMENT ADJUSTMENT.] 41.7 In addition to the current pensions and other retirement 41.8 benefits payable, the pensions and retirement benefits payable 41.9 to retired police officers and firefighters and their surviving 41.10 spouses by the Eveleth police and fire trust fund are increased 41.11 by $100 per month. Increases are retroactive to January 1, 2001. 41.12 Sec. 2. [EFFECTIVE DATE.] 41.13 Section 1 is effective on the day after the date on which 41.14 the Eveleth city council and the chief clerical officer of the 41.15 city of Eveleth complete in a timely manner their compliance 41.16 with Minnesota Statutes, section 645.021, subdivisions 2 and 3. 41.17 ARTICLE 11 41.18 ONE PERSON OR SMALL GROUP SERVICE CREDIT PURCHASES 41.19 Section 1. [TEACHERS RETIREMENT ASSOCIATION; SABBATICAL 41.20 LEAVE OF ABSENCE SERVICE CREDIT PURCHASE.] 41.21 (a) An eligible person described in paragraph (b) is 41.22 entitled to purchase 0.34 of a year of allowable and formula 41.23 service credit from the teachers retirement association. 41.24 (b) An eligible person is a person who: 41.25 (1) was born on August 7, 1942; 41.26 (2) was employed by independent school district No. 11, 41.27 Anoka-Hennepin, on August 28, 1970; 41.28 (3) was on a sabbatical leave of absence from July 1, 1977, 41.29 to June 30, 1978; and 41.30 (4) due to inadvertent clerical error by independent school 41.31 district No. 11, Anoka-Hennepin, did not have full contributions 41.32 for the sabbatical leave made in a timely fashion and 0.654 of a 41.33 year of service credit was credited rather than one year of 41.34 service for the sabbatical leave. 41.35 (c) To purchase the service credit under this section, the 41.36 eligible person must pay to the teachers retirement association 42.1 the amount of the shortage in member contributions for the 42.2 sabbatical leave period plus interest from June 30, 1978, to the 42.3 date on which payment is made at an annual compound rate of 8.5 42.4 percent. Authority to make this payment expires on July 1, 42.5 2002, or the date of termination of service, whichever is 42.6 earlier. 42.7 (d) If the eligible person makes the payment required in 42.8 paragraph (c) in a timely manner, independent school district 42.9 No. 11, Anoka-Hennepin, may pay the balance of the full prior 42.10 service credit purchase payment amount calculated under 42.11 Minnesota Statutes, section 356.55 or 356.551, whichever 42.12 applies. If independent school district No. 11, Anoka-Hennepin, 42.13 does not pay the balance within 30 days of notification by the 42.14 executive director of the teachers retirement association of the 42.15 payment of the member contribution payment by the eligible 42.16 person under paragraph (c), the executive director shall notify 42.17 the commissioner of finance of that fact and the commissioner 42.18 shall deduct from any state aid payable to independent school 42.19 district No. 11, Anoka-Hennepin, that amount, plus interest on 42.20 that amount of 1.5 percent per month for each month or portion 42.21 of a month that have elapsed from the effective date of this 42.22 section. 42.23 (e) The eligible person shall provide any relevant 42.24 documentation related to eligibility to make this service credit 42.25 purchase that is required by the executive director of the 42.26 teachers retirement association. 42.27 Sec. 2. [TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF 42.28 EXTENDED LEAVE OF ABSENCE SERVICE CREDIT.] 42.29 (a) An eligible person, as described in paragraph (b), is 42.30 entitled to purchase allowable and formula service credit in the 42.31 teachers retirement association for the period specified in 42.32 paragraph (c) by making the payment specified in Minnesota 42.33 Statutes, section 356.55. 42.34 (b) An eligible person is a person who: 42.35 (1) was born on May 25, 1948; 42.36 (2) was employed by the Hutchinson public schools for 26 43.1 years; 43.2 (3) was granted an extended leave of absence on May 27, 43.3 1997; and 43.4 (4) due to a clerical error within the person's electrical 43.5 business, omitted payment of contributions under Minnesota 43.6 Statutes, section 354.094, for the 1997-1998 school year. 43.7 (c) The prior service credit purchase period is the 43.8 1997-1998, 1998-1999, and 1999-2000 school years. 43.9 (d) The service credit purchase authority expires on June 43.10 29, 2001, or the date of the person's retirement, whichever is 43.11 earlier. 43.12 Sec. 3. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PURCHASE 43.13 OF PREVIOUSLY UNCREDITED WHITE BEAR LAKE PUBLIC SCHOOL CLERICAL 43.14 SERVICE.] 43.15 (a) An eligible person described in paragraph (b) is 43.16 entitled to receive credit for one year of allowable service 43.17 from the public employees retirement association on June 30, 43.18 2001. 43.19 (b) An eligible person is a person who: 43.20 (1) was born on July 24, 1939; 43.21 (2) was initially employed by independent school district 43.22 No. 624, White Bear Lake, as a casual clerical employee on March 43.23 15, 1971; 43.24 (3) was subsequently employed as a full-time clerical 43.25 employee by independent school district No. 624, White Bear 43.26 Lake, from the 1973-1974 school year until the 1990-1991 school 43.27 year; 43.28 (4) was subsequently employed as a teacher by independent 43.29 school district No. 624, White Bear Lake, from August 26, 1991; 43.30 and 43.31 (5) was not included in coverage by the public employees 43.32 retirement association for full-time clerical employment during 43.33 the 1973-1974 school year. 43.34 (c) The prior service credit purchase payment must be 43.35 determined under Minnesota Statutes, section 356.55 or 356.551, 43.36 whichever provision is in effect, and must include the impact of 44.1 the purchase on the eligible person's prospective retirement 44.2 annuity from the teachers retirement association. 44.3 Notwithstanding any provision of Minnesota Statutes, section 44.4 356.55 or 356.551, to the contrary, independent school district 44.5 No. 624, White Bear Lake, is obligated to pay the full required 44.6 service credit payment, including any amount attributable to the 44.7 teachers retirement association. If the school district does 44.8 not make payment of the service credit purchase amount by June 44.9 30, 2001, the executive director of the public employees 44.10 retirement association and the executive director of the 44.11 teachers retirement association shall notify the commissioner of 44.12 finance of the school district's failure. Following 44.13 notification, the commissioner of finance shall deduct the 44.14 required amount from any state aid otherwise payable to 44.15 independent school district No. 624, White Bear Lake, and shall 44.16 transfer the appropriate amounts to the public employees 44.17 retirement fund and the teachers retirement fund. 44.18 (d) The eligible person must provide the executive director 44.19 of the public employees retirement association with necessary 44.20 documentation of the applicability of this section and with any 44.21 other relevant information that the executive director may 44.22 require. 44.23 Sec. 4. [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION; 44.24 SERVICE CREDIT PURCHASE AUTHORIZATION.] 44.25 (a) Notwithstanding any provision of law to the contrary, 44.26 an eligible person described in paragraph (b) is authorized to 44.27 purchase allowable service credit under procedures specified in 44.28 Minnesota Statutes, section 356.55 or 356.551, whichever is in 44.29 effect, from the Minneapolis teachers retirement fund 44.30 association for the period described in paragraph (c). 44.31 (b) An eligible person is a person who: 44.32 (1) was born on July 21, 1941; 44.33 (2) initially was employed as a teacher by independent 44.34 school district No. 281, Robbinsdale, in December 1962; 44.35 (3) began employment as a teacher by special school 44.36 district No. 1, Minneapolis, in August 1985; 45.1 (4) currently is a special education teacher at the Webster 45.2 open school; and 45.3 (5) had no retirement contributions or social security 45.4 contributions withheld from compensation by special school 45.5 district No. 1, Minneapolis, for the 1985-1986 school year. 45.6 (c) The allowable service credit purchase period is the 45.7 1985-1986 school year. 45.8 (d) The eligible person must provide all relevant 45.9 documentation of the applicability of the requirements set forth 45.10 in paragraph (b) and any other applicable information that the 45.11 executive director of the Minneapolis teachers retirement fund 45.12 association may request. 45.13 (e) Allowable service credit for the purchase period must 45.14 be granted by the Minneapolis teachers retirement fund 45.15 association to the eligible person upon the receipt of the 45.16 payment amounts. If the service credit purchase created 45.17 additional liabilities in the teachers retirement association, 45.18 the applicable portion of the full payment amounts shall be 45.19 transferred to that association. 45.20 (f) The prior service credit purchase authority expires on 45.21 July 1, 2001, or on the date of the termination of active 45.22 teaching service with special school district No. 1, 45.23 Minneapolis, by the eligible person, whichever occurs earlier. 45.24 Sec. 5. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PAYMENT 45.25 OF OMITTED SALARY DEDUCTIONS.] 45.26 Subdivision 1. [APPLICATION.] A person who was born on 45.27 February 1, 1961, who was employed by Lac Qui Parle county in 45.28 March 1989, June 1989, and July 1989, but who first had public 45.29 employees retirement association member contributions deducted 45.30 in August 1989, is entitled to purchase service credit from the 45.31 public employees retirement association for the service in 45.32 March, June, and July 1989. 45.33 Subd. 2. [PAYMENT.] (a) The purchase payment amount for 45.34 the service credit purchase authorized in subdivision 1 is 45.35 governed by Minnesota Statutes, section 356.55 or 356.551, 45.36 whichever is applicable. 46.1 (b) To purchase the allowable service credit, the eligible 46.2 person must pay an amount equal to the employee contribution 46.3 rate or rates in effect during the service credit purchase 46.4 period applied to the actual salary in effect during that 46.5 period, plus 8.5 percent compound annual interest from the date 46.6 the contributions should have been made until the date of actual 46.7 payment. 46.8 (c) Upon receipt of the payment by the eligible person as 46.9 specified under paragraph (b), the executive director of the 46.10 public employees retirement association shall notify the chief 46.11 administrative officer of Lac Qui Parle county of that fact. 46.12 Within 30 days of that notification, Lac Qui Parle county shall 46.13 pay to the public employees retirement association the balance 46.14 of the service credit purchase payment amount under Minnesota 46.15 Statutes, section 356.55 or 356.551, whichever is in effect, 46.16 that is not paid by the eligible person. 46.17 (d) If Lac Qui Parle county does not make the payments 46.18 required by paragraph (c) in a timely fashion, the executive 46.19 director of the public employees retirement association shall 46.20 notify the commissioner of finance, who then shall deduct the 46.21 required amounts from any state aid payable to the county, plus 46.22 interest at the rate of one percent per month or part of a month 46.23 that has elapsed since the date on which the eligible person 46.24 made payment under paragraph (b). 46.25 Subd. 3. [APPLICATION; DOCUMENTATION.] A person described 46.26 in subdivision 1 must apply to the executive director of the 46.27 public employees retirement association to make the purchase. 46.28 The application must be on a form provided by the executive 46.29 director and must include all necessary documentation of the 46.30 applicability of this section and any other relevant information 46.31 that the executive director may require. 46.32 Subd. 4. [LIMITATION.] Authority under this section 46.33 expires on July 1, 2002, or upon termination of service, 46.34 whichever is earlier. 46.35 Sec. 6. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PAYMENT 46.36 OF OMITTED SALARY DEDUCTION.] 47.1 Subdivision 1. [APPLICATION.] (a) An eligible person 47.2 described in paragraph (b) and an eligible person described in 47.3 paragraph (c) are authorized to purchase service credit in the 47.4 public employees retirement association general plan for the 47.5 period specified in paragraph (d). 47.6 (b) An eligible person is a person who: 47.7 (1) was born on February 11, 1948; 47.8 (2) is currently a member of the public employees 47.9 retirement association general plan; and 47.10 (3) is currently employed by the Minneapolis park board and 47.11 was first employed by that board on March 8, 1983. 47.12 (c) An eligible person is a person who: 47.13 (1) was born on August 12, 1936; 47.14 (2) is currently a member of the public employees 47.15 retirement association general plan; and 47.16 (3) is currently employed by the Minneapolis park board and 47.17 was first employed by that board on April 4, 1983. 47.18 (d) The service credit purchase period is any period of 47.19 previously uncredited service, unless properly excluded under 47.20 law, during which the eligible person in paragraph (b) or (c), 47.21 as applicable, was employed by the Minneapolis park board 47.22 following the date on which, under applicable requirements of 47.23 public employees retirement association law, the applicable 47.24 eligible person should have been reported for plan membership. 47.25 Subd. 2. [PAYMENT.] The purchase payment for the service 47.26 credit purchases authorized in subdivision 1 is governed by 47.27 Minnesota Statutes 2000, section 356.55 or 356.551, whichever is 47.28 applicable. 47.29 Subd. 3. [DOCUMENTATION.] A person described in 47.30 subdivision 1 must apply with the executive director of the 47.31 public employees retirement association to make the purchase. 47.32 The application must be in writing and must include all 47.33 necessary documentation of the applicability of this section and 47.34 any other relevant information required by the executive 47.35 director. 47.36 Subd. 4. [APPLICATION DATE.] Authority to purchase service 48.1 credit under this section terminates on January 1, 2002, or upon 48.2 termination by the applicable person from service. 48.3 Sec. 7. [PERA-COORDINATED RETIREMENT PLAN; SERVICE CREDIT 48.4 PURCHASE AUTHORIZED.] 48.5 (a) Notwithstanding any provision of law to the contrary, 48.6 an eligible person described in paragraph (b) is authorized to 48.7 purchase allowable service credit from the coordinated plan of 48.8 the public employees retirement system for the period described 48.9 in paragraph (c) by making a prior service credit purchase 48.10 payment required under Minnesota Statutes, section 356.55 or 48.11 356.551, whichever is applicable. Notwithstanding the authority 48.12 in these sections, neither the Minneapolis employees retirement 48.13 fund nor the city of Minneapolis is authorized to pay any 48.14 portion of the purchase payment amount. 48.15 (b) An eligible person is a person who: 48.16 (1) is a current employee of the Minneapolis employees 48.17 retirement fund and is a current member of the coordinated plan 48.18 of the public employees retirement association and an inactive 48.19 member of the unclassified retirement plan of the Minnesota 48.20 state retirement system; 48.21 (2) was born on April 26, 1949; 48.22 (3) was employed as a full-time instructor temporary 48.23 classification on August 15, 1981, by the accounting department, 48.24 Carlson school of management, University of Minnesota; and 48.25 (4) was subsequently reappointed annually as a full-time 48.26 instructor temporary classification for an additional three 48.27 years and terminated employment on August 14, 1985. 48.28 (c) The allowable service credit purchase period is the 48.29 period described in paragraph (b), clauses (3) and (4). 48.30 (d) The eligible person must provide all relevant 48.31 documentation of the applicability of the requirements in 48.32 paragraph (b) and any other applicable information that the 48.33 executive director of the public employees retirement 48.34 association may request. 48.35 (e) Allowable service credit for the purchase period must 48.36 be granted by the coordinated plan of the public employees 49.1 retirement fund to the eligible person upon receipt of the prior 49.2 service credit purchase payment amount. 49.3 (f) The prior service credit purchase authority expires on 49.4 July 1, 2002, or on the date of termination of active service 49.5 covered by the public employees retirement association by the 49.6 eligible person, whichever occurs earlier. 49.7 Sec. 8. [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; PURCHASE 49.8 OF PRIOR SERVICE CREDIT.] 49.9 Subdivision 1. [AUTHORIZATION.] A member of the public 49.10 employees retirement association police and fire plan who was 49.11 born on August 2, 1951, who was employed by the city of Brainerd 49.12 as a police officer before February 29, 1996, and who has at 49.13 least three years of allowable service credit with the public 49.14 employees retirement association police and fire fund is 49.15 entitled to purchase up to ten years of allowable service credit 49.16 for employment by the city of Brainerd as a full-time police 49.17 officer in a position that was not covered by the police and 49.18 fire fund but was covered by a local relief association governed 49.19 by Minnesota Statutes, section 69.77. This authorization 49.20 applies notwithstanding any contrary provision of Minnesota 49.21 Statutes, section 353A.10. To purchase service credit, an 49.22 eligible person must make payments required under Minnesota 49.23 Statutes, section 356.55 or 356.551, whichever is applicable. 49.24 This authorization applies only if the person is not entitled to 49.25 receive a current or deferred service pension or retirement 49.26 annuity or a current disability benefit from another Minnesota 49.27 public pension plan, including a local police relief 49.28 association, for that service. 49.29 Subd. 2. [APPLICATION AND DOCUMENTATION.] A person who 49.30 desires to purchase service credit under subdivision 1 must 49.31 apply in writing with the executive director of the public 49.32 employees retirement association to make the purchase. The 49.33 application must include all necessary documentation of the 49.34 person's qualifications to make the purchase, signed written 49.35 permission to allow the executive director to request and 49.36 receive necessary verification of applicable facts and 50.1 eligibility requirements, and any other relevant information 50.2 that the executive director may require. 50.3 Subd. 3. [SERVICE CREDIT GRANT.] Allowable service credit 50.4 for the purchase period must be granted by the public employees 50.5 retirement association to the purchasing person only upon 50.6 receipt of the purchase payment amount. Payment must be made 50.7 before the person's effective date of retirement. 50.8 Sec. 9. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PURCHASE 50.9 OF SERVICE FOR UNCREDITED SERVICE AS A MEMBER OF THE ST. PAUL 50.10 CITY COUNCIL.] 50.11 Subdivision 1. [APPLICABILITY.] This section applies to a 50.12 person: 50.13 (1) who was born September 10, 1938; 50.14 (2) who began service as a member of the St. Paul city 50.15 council in 1970; 50.16 (3) who was eligible for membership in the public employees 50.17 retirement association for the period from July 1, 1974, to 50.18 March 31, 1975; 50.19 (4) for whom no employer contributions were paid and no 50.20 employee contributions deducted by the city of St. Paul for the 50.21 period described in clause (3); and 50.22 (5) who retired September 1, 2000, and is currently 50.23 receiving retirement annuities from the St. Paul teachers 50.24 retirement fund association, the public employees retirement 50.25 association general plan, and the Minnesota state retirement 50.26 system general plan. 50.27 Subd. 2. [PURCHASE OF SERVICE.] (a) A person described in 50.28 subdivision 1 may purchase service credit under Minnesota 50.29 Statutes, section 356.55, in the public employees retirement 50.30 association general plan for the period described in subdivision 50.31 1, clause (3). 50.32 (b) To purchase the allowable service credit, the eligible 50.33 person must pay an amount equal to the employee contribution 50.34 rate or rates in effect during the service credit purchase 50.35 period applied to the actual salary in effect during that 50.36 period, plus 8.5 percent compound annual interest from the date 51.1 the contributions should have been made until the date of actual 51.2 payment. 51.3 (c) Upon receipt of the payment under paragraph (b) by the 51.4 eligible person, the executive director of the public employees 51.5 retirement association shall notify the chief administrative 51.6 officer of the city of St. Paul of that fact. Within 30 days of 51.7 that notification, the city of St. Paul shall pay to the public 51.8 employees retirement association the balance of the service 51.9 credit purchase payment amount under Minnesota Statutes, section 51.10 356.55, that is not paid by the eligible person. 51.11 (d) If the city of St. Paul does not make the payments 51.12 required by paragraph (c) in a timely fashion, the executive 51.13 director of the public employees retirement association shall 51.14 notify the commissioner of finance, who shall then deduct the 51.15 required amounts from any state aid payable to the city, plus 51.16 interest at the rate of one percent per month or part of a month 51.17 that has elapsed since the date on which the eligible person 51.18 made payment under paragraph (b). 51.19 Subd. 3. [APPLICATION DATE.] Authority to purchase service 51.20 credit under this section expires on July 1, 2001. 51.21 Subd. 4. [BENEFIT REVISION DATE.] The annuity of the 51.22 eligible individual under subdivision 1 is to be revised on the 51.23 first day of the month following the month in which the full 51.24 purchase price determined under subdivision 2 is received by the 51.25 public employees retirement association. 51.26 Subd. 5. [LUMP-SUM PAYMENT.] The public employees 51.27 retirement association shall also pay the person described in 51.28 subdivision 1 a lump-sum amount equal to the difference between 51.29 the annuity received from the association from September 1, 51.30 2000, to the date of payment for the service credit and the 51.31 amount the person would have received with the additional 51.32 service credit purchased under this section. 51.33 Sec. 10. [EFFECTIVE DATE.] 51.34 (a) Sections 1 to 9 are effective the day following final 51.35 enactment. 51.36 (b) Section 8 is repealed effective on May 16, 2002. 52.1 ARTICLE 12 52.2 VARIOUS ADMINISTRATIVE PROVISIONS 52.3 Section 1. Minnesota Statutes 2000, section 3A.03, 52.4 subdivision 2, is amended to read: 52.5 Subd. 2. [REFUND.] (1) Anypersonformer member who has 52.6 made contributionspursuant tounder subdivision 1 who is no 52.7 longer a member of the legislature is entitled to receive upon 52.8 application to the director a refund of all contributions 52.9 credited to the member's account with interest at an annual rate 52.10 of six percent compounded annually. 52.11 (2) The refund of contributions as provided in clause (1) 52.12 terminates all rights of a former member of the legislature or 52.13 survivors of the former member under this chapter. Should the 52.14 former member of the legislature again be a member of the 52.15 legislature after having taken a refund as provided above, the 52.16 member shall be considered a new member. However, a new member 52.17 may reinstate the rights and credit for service forfeited, 52.18 provided the new member repays all refunds taken plus interest 52.19 at an annual rate of 8.5 percent compounded annually. 52.20 (3) No person shall be required to apply for or accept a 52.21 refund. 52.22 Sec. 2. Minnesota Statutes 2000, section 11A.18, 52.23 subdivision 7, is amended to read: 52.24 Subd. 7. [PARTICIPATION AND FINANCIAL REPORTING IN FUND.] 52.25 (a) Each participating public retirement fund or plan which has 52.26 transferred money to the state board for investment in the 52.27 postretirement investment fund shall have an undivided 52.28 participation in the fund. The participation on any valuation 52.29 date shall be determined by adding to the participation on the 52.30 prior valuation date:(a)(1) funds transferred in accordance 52.31 with subdivision 6,(b)(2) the amount of required investment 52.32 income on its participation as defined in subdivision 9,clause52.33(1)(c)paragraph (c), clause (1), and(c)(3) the reserves for 52.34 any benefit adjustment made as of the current valuation date 52.35 with the result adjusted for any mortality gains or losses 52.36 determinedpursuant tounder subdivision 11. 53.1 (b) The total fair market value of the postretirement fund 53.2 as of June 30 must be calculated in accordance with generally 53.3 accepted accounting principles. The fair market value share of 53.4 each fund participating in the postretirement investment fund 53.5 shall be allocated by adding to the fair market value at the 53.6 beginning of the fiscal year: (1) 100 percent of the funds 53.7 transferred in accordance with subdivision 6; and (2) a pro rata 53.8 distribution of unrealized gains or losses, based on a weighted 53.9 percentage of participation at the end of each month of the 53.10 fiscal year. 53.11 Sec. 3. [13.632] [TEACHERS RETIREMENT FUND ASSOCIATION 53.12 DATA; CERTAIN CITIES.] 53.13 Subdivision 1. [BENEFICIARY AND SURVIVOR DATA.] The 53.14 following data on beneficiaries and survivors of the Minneapolis 53.15 teachers retirement fund association, the St. Paul teachers 53.16 retirement fund association, and the Duluth teachers retirement 53.17 fund association members are private data on individuals: home 53.18 address, date of birth, direct deposit number, and tax 53.19 withholding data. 53.20 Subd. 2. [LIMITS ON DISCLOSURE.] Required disclosure of 53.21 data about members, survivors, and beneficiaries is limited to 53.22 name, gross annuity, or benefit and type of annuity or benefit 53.23 awarded. 53.24 Sec. 4. Minnesota Statutes 2000, section 352.01, 53.25 subdivision 2a, is amended to read: 53.26 Subd. 2a. [INCLUDED EMPLOYEES.] (a) "State employee" 53.27 includes: 53.28 (1) employees of the Minnesota historical society; 53.29 (2) employees of the state horticultural society; 53.30 (3) employees of the Disabled American Veterans, Department 53.31 of Minnesota, Veterans of Foreign Wars, Department of Minnesota, 53.32 if employed before July 1, 1963; 53.33 (4) employees of the Minnesota crop improvement 53.34 association; 53.35 (5) employees of the adjutant general who are paid from 53.36 federal funds and who are not covered by any federal civilian 54.1 employees retirement system; 54.2 (6) employees of the Minnesota state colleges and 54.3 universities employed under the university or college activities 54.4 program; 54.5 (7) currently contributing employees covered by the system 54.6 who are temporarily employed by the legislature during a 54.7 legislative session or any currently contributing employee 54.8 employed for any special service as defined in subdivision 2b, 54.9 clause (8); 54.10 (8) employees of the armory building commission; 54.11 (9) employees of the legislature appointed without a limit 54.12 on the duration of their employment and persons employed or 54.13 designated by the legislature or by a legislative committee or 54.14 commission or other competent authority to conduct a special 54.15 inquiry, investigation, examination, or installation; 54.16 (10) trainees who are employed on a full-time established 54.17 training program performing the duties of the classified 54.18 position for which they will be eligible to receive immediate 54.19 appointment at the completion of the training period; 54.20 (11) employees of the Minnesota safety council; 54.21 (12) any employees on authorized leave of absence from the 54.22 transit operating division of the former metropolitan transit 54.23 commission who are employed by the labor organization which is 54.24 the exclusive bargaining agent representing employees of the 54.25 transit operating division; 54.26 (13) employees of the metropolitan council, metropolitan 54.27 parks and open space commission, metropolitan sports facilities 54.28 commission, metropolitan mosquito control commission, or 54.29 metropolitan radio board unless excluded or covered by another 54.30 public pension fund or plan under section 473.415, subdivision 54.31 3; 54.32 (14) judges of the tax court; 54.33 (15) personnel employed on June 30, 1992, by the University 54.34 of Minnesota in the management, operation, or maintenance of its 54.35 heating plant facilities, whose employment transfers to an 54.36 employer assuming operation of the heating plant facilities, so 55.1 long as the person is employed at the University of Minnesota 55.2 heating plant by that employer or by its successor organization; 55.3 and 55.4 (16) seasonal help in the classified service employed by 55.5 the department of revenue; and55.6(17) a person who renders teaching or other service for the55.7Minnesota state colleges and universities system and who also55.8renders service on a part-time basis for an employer with55.9employees covered by the general state employees retirement plan55.10of the Minnesota state retirement system, for all service with55.11the Minnesota state colleges and universities system, if the55.12person's nonteaching service comprises at least 50 percent of55.13the combined total salary received by the person as determined55.14by the chancellor of the Minnesota state colleges and55.15universities system or if the person is certified for general55.16state employees retirement plan coverage by the chancellor of55.17the Minnesota state colleges and universities system. 55.18 (b) Employees specified in paragraph (a), clause (15), are 55.19 included employees under paragraph (a) if employer and employee 55.20 contributions are made in a timely manner in the amounts 55.21 required by section 352.04. Employee contributions must be 55.22 deducted from salary. Employer contributions are the sole 55.23 obligation of the employer assuming operation of the University 55.24 of Minnesota heating plant facilities or any successor 55.25 organizations to that employer. 55.26 Sec. 5. Minnesota Statutes 2000, section 352.01, 55.27 subdivision 2b, is amended to read: 55.28 Subd. 2b. [EXCLUDED EMPLOYEES.] "State employee" does not 55.29 include: 55.30 (1)elective state officers;55.31(2)students employed by the University of Minnesota, or 55.32 the state colleges and universities,and community colleges55.33 unless approved for coverage by the board of regents or the 55.34 board of trustees of the Minnesota state colleges and 55.35 universities, as the case may be; 55.36(3)(2) employees who are eligible for membership in the 56.1 state teachers retirement association except employees of the 56.2 department of children, families, and learning who have chosen 56.3 or may choose to be covered by the Minnesota state retirement 56.4 system instead of the teachers retirement association; 56.5(4)(3) employees of the University of Minnesota who are 56.6 excluded from coverage by action of the board of regents; 56.7(5)(4) officers and enlisted personnel in the national 56.8 guard and the naval militia who are assigned to permanent 56.9 peacetime duty and who under federal law are or are required to 56.10 be members of a federal retirement system; 56.11(6)(5) election officers; 56.12(7)(6) persons engaged in public work for the state but 56.13 employed by contractors when the performance of the contract is 56.14 authorized by the legislature or other competent authority; 56.15(8)(7) officers and employees of the senate and house of 56.16 representatives or a legislative committee or commission who are 56.17 temporarily employed; 56.18(9)(8) receivers, jurors, notaries public, and court 56.19 employees who are not in the judicial branch as defined in 56.20 section 43A.02, subdivision 25, except referees and adjusters 56.21 employed by the department of labor and industry; 56.22(10)(9) patient and inmate help in state charitable, 56.23 penal, and correctional institutions including the Minnesota 56.24 veterans home; 56.25(11)(10) persons employed for professional services where 56.26 the service is incidental to regular professional duties and 56.27 whose compensation is paid on a per diem basis; 56.28(12)(11) employees of the Sibley House Association; 56.29(13)(12) the members of any state board or commission who 56.30 serve the state intermittently and are paid on a per diem basis; 56.31 the secretary, secretary-treasurer, and treasurer of those 56.32 boards if their compensation is $5,000 or less per year, or, if 56.33 they are legally prohibited from serving more than three years; 56.34 and the board of managers of the state agricultural society and 56.35 its treasurer unless the treasurer is also its full-time 56.36 secretary; 57.1(14)(13) state troopers; 57.2(15)(14) temporary employees of the Minnesota state fair 57.3 employed on or after July 1 for a period not to extend beyond 57.4 October 15 of that year; and persons employed at any time by the 57.5 state fair administration for special events held on the 57.6 fairgrounds; 57.7(16)(15) emergency employees in the classified service; 57.8 except that if an emergency employee, within the same pay 57.9 period, becomes a provisional or probationary employee on other 57.10 than a temporary basis, the employee shall be considered a 57.11 "state employee" retroactively to the beginning of the pay 57.12 period; 57.13(17)(16) persons described in section 352B.01, subdivision 57.14 2, clauses (2) to (5); 57.15(18)(17) temporary employees in the classified service, 57.16 and temporary employees in the unclassified service appointed 57.17 for a definite period of not more than six months and employed 57.18 less than six months in any one-year period; 57.19(19)(18) trainee employees, except those listed in 57.20 subdivision 2a, clause (10); 57.21(20)(19) persons whose compensation is paid on a fee 57.22 basis; 57.23(21)(20) state employees who are employed by the board of 57.24 trustees of the Minnesota state colleges and universities in 57.25 unclassified positions enumerated in section 43A.08, subdivision 57.26 1, clause (9); 57.27 (21) state employees who in any year have credit for 12 57.28 months service as teachers in the public schools of the state 57.29 and as teachers are members of the teachers retirement 57.30 association or a retirement system in St. Paul, Minneapolis, or 57.31 Duluth; 57.32 (22) employees of the adjutant general employed on an 57.33 unlimited intermittent or temporary basis in the classified and 57.34 unclassified service for the support of army and air national 57.35 guard training facilities; 57.36 (23) chaplains and nuns who are excluded from coverage 58.1 under the federal Old Age, Survivors, Disability, and Health 58.2 Insurance Program for the performance of service as specified in 58.3 United States Code, title 42, section 410(a)(8)(A), as amended, 58.4 if no irrevocable election of coverage has been made under 58.5 section 3121(r) of the Internal Revenue Code of 1986, as amended 58.6 through December 31, 1992; 58.7 (24) examination monitors employed by departments, 58.8 agencies, commissions, and boards to conduct examinations 58.9 required by law; 58.10 (25) persons appointed to serve as members of fact-finding 58.11 commissions or adjustment panels, arbitrators, or labor referees 58.12 under chapter 179; 58.13 (26) temporary employees employed for limited periods under 58.14 any state or federal program for training or rehabilitation 58.15 including persons employed for limited periods from areas of 58.16 economic distress except skilled and supervisory personnel and 58.17 persons having civil service status covered by the system; 58.18 (27) full-time students employed by the Minnesota 58.19 historical society intermittently during part of the year and 58.20 full-time during the summer months; 58.21 (28) temporary employees, appointed for not more than six 58.22 months, of the metropolitan council and of any of its statutory 58.23 boards, if the board members are appointed by the metropolitan 58.24 council; 58.25 (29) persons employed in positions designated by the 58.26 department of employee relations as student workers; 58.27 (30) members of trades employed by the successor to the 58.28 metropolitan waste control commission with trade union pension 58.29 plan coverage under a collective bargaining agreement first 58.30 employed after June 1, 1977; 58.31 (31) persons employed in subsidized on-the-job training, 58.32 work experience, or public service employment as enrollees under 58.33 the federal Comprehensive Employment and Training Act after 58.34 March 30, 1978, unless the person has as of the later of March 58.35 30, 1978, or the date of employment sufficient service credit in 58.36 the retirement system to meet the minimum vesting requirements 59.1 for a deferred annuity, or the employer agrees in writing on 59.2 forms prescribed by the director to make the required employer 59.3 contributions, including any employer additional contributions, 59.4 on account of that person from revenue sources other than funds 59.5 provided under the federal Comprehensive Employment and Training 59.6 Act, or the person agrees in writing on forms prescribed by the 59.7 director to make the required employer contribution in addition 59.8 to the required employee contribution; 59.9 (32) off-duty peace officers while employed by the 59.10 metropolitan council; 59.11 (33) persons who are employed as full-time police officers 59.12 by the metropolitan council and as police officers are members 59.13 of the public employees police and fire fund; 59.14 (34) persons who are employed as full-time firefighters by 59.15 the department of military affairs and as firefighters are 59.16 members of the public employees police and fire fund; 59.17 (35) foreign citizens with a work permit of less than three 59.18 years, or an H-1b/JV visa valid for less than three years of 59.19 employment, unless notice of extension is supplied which allows 59.20 them to work for three or more years as of the date the 59.21 extension is granted, in which case they are eligible for 59.22 coverage from the date extended; and 59.23 (36) persons who are employed by the board of trustees of 59.24 the Minnesota state colleges and universities and who elect to 59.25 remain members of the public employees retirement association or 59.26 the Minneapolis employees retirement fund, whichever applies, 59.27 under section 136C.75. 59.28 Sec. 6. Minnesota Statutes 2000, section 352.113, 59.29 subdivision 4, is amended to read: 59.30 Subd. 4. [MEDICAL OR PSYCHOLOGICAL EXAMINATIONS; 59.31 AUTHORIZATION FOR PAYMENT OF BENEFIT.] An applicant shall 59.32 provide medical or psychological evidence to support an 59.33 application for total and permanent disability. The director 59.34 shall have the employee examined by at least one additional 59.35 licensed chiropractor, physician, or psychologist designated by 59.36 the medical adviser. The chiropractors, physicians, or 60.1 psychologists shall make written reports to the director 60.2 concerning the employee's disability including medical opinions 60.3 as to whether the employee is permanently and totally disabled 60.4 within the meaning of section 352.01, subdivision 17. The 60.5 director shall also obtain written certification from the 60.6 employer stating whether the employment has ceased or whether 60.7 the employee is on sick leave of absence because of a disability 60.8 that will prevent further service to the employer and as a 60.9 consequence the employee is not entitled to compensation from 60.10 the employer. The medical adviser shall consider the reports of 60.11 the physicians, psychologists, and chiropractors and any other 60.12 evidence supplied by the employee or other interested parties. 60.13 If the medical adviser finds the employee totally and 60.14 permanently disabled, the adviser shall make appropriate 60.15 recommendation to the director in writing together with the date 60.16 from which the employee has been totally disabled. The director 60.17 shall then determine if the disability occurred within 180 days 60.18 of filing the application, while still in the employment of the 60.19 state, and the propriety of authorizing payment of a disability 60.20 benefit as provided in this section. A terminated employee may 60.21 apply for a disability benefit within 180 days of termination as 60.22 long as the disability occurred while in the employment of the 60.23 state. The fact that an employee is placed on leave of absence 60.24 without compensation because of disability does not bar that 60.25 employee from receiving a disability benefit. Unless payment of 60.26 a disability benefit has terminated because the employee is no 60.27 longer totally disabled, or because the employee has reached 60.28 normal retirement age as provided in this section, the 60.29 disability benefit shall cease with the last payment received by 60.30 the disabled employee or which had accrued during the lifetime 60.31 of the employee unless there is a spouse surviving; in that 60.32 event the surviving spouse is entitled to the disability benefit 60.33 for the calendar month in which the disabled employee died. 60.34 Sec. 7. Minnesota Statutes 2000, section 352.113, 60.35 subdivision 6, is amended to read: 60.36 Subd. 6. [REGULAR MEDICAL OR PSYCHOLOGICAL EXAMINATIONS.] 61.1 At least once each year during the first five years following 61.2 the allowance of a disability benefit to any employee, and at 61.3 least once in every three-year period thereafter, the director 61.4 may require any disabled employee to undergo a medical or 61.5 psychological examination. The examination must be made at the 61.6 place of residence of the employee, or at any place mutually 61.7 agreed upon, by a physician or physicians designated by the 61.8 medical adviser and engaged by the director. If any examination 61.9 indicates to the medical adviser that the employee is no longer 61.10 permanently and totally disabled, or is engaged in or can engage 61.11 in a gainful occupation, payments of the disability benefit by 61.12 the fund must be discontinued. The payments shall discontinue 61.13 as soon as the employee is reinstated to the payroll following 61.14 sick leave, but in no case shall payment be made for more than 61.15 60 days after the medical adviser finds that the employee is no 61.16 longer permanently and totally disabled. 61.17 Sec. 8. Minnesota Statutes 2000, section 352.22, 61.18 subdivision 8, is amended to read: 61.19 Subd. 8. [REFUND SPECIFICALLY LIMITED.] If a former 61.20 employee covered by the system does not apply for refund within 61.21 five years after the last deduction was taken from salary for 61.22 the retirement fund, and does not have enough service to qualify 61.23 for a deferred annuity, accumulated contributions must be 61.24 credited to and become a part of the retirement fund. If the 61.25 former employee returns to state service and becomes a state 61.26 employee covered by the system, the amount credited to the 61.27 retirement fund, if more than$2$25, shall be restored to the 61.28 individual account. If the amount credited to the fund is over 61.29$2$25 and the former employee applies for refund or an annuity 61.30 under section 352.72, the amount must be restored to the former 61.31 employee's individual account and refund made or annuity paid 61.32 whichever applies. 61.33 Sec. 9. Minnesota Statutes 2000, section 352.87, 61.34 subdivision 4, is amended to read: 61.35 Subd. 4. [NON-JOB-RELATED DISABILITY BENEFITS.] An 61.36 eligible member described in subdivision 1, who is less than 5562.1years of age andwho becomes disabled and physically or mentally 62.2 unfit to perform the duties of the position because of sickness 62.3 or injury while not engaged in covered employment,is entitled 62.4 to a disability benefit amount equivalent to an annuity computed 62.5 under subdivision 3 assuming the member has 15 years of service 62.6 qualifying under this section and waiving the minimum age 62.7 requirement. If the eligible member becomes disabled under this 62.8 subdivision with more than 15 years of service covered under 62.9 this section, the eligible member is entitled to a disability 62.10 benefit amount equivalent to an annuity computed under 62.11 subdivision 3 based on all years of service credited under this 62.12 section and waiving the minimum age requirement. 62.13 Sec. 10. Minnesota Statutes 2000, section 352.87, 62.14 subdivision 5, is amended to read: 62.15 Subd. 5. [JOB-RELATED DISABILITY BENEFITS.] An eligible 62.16 member defined in subdivision 1, who is less than 55 years of62.17age andwho becomes disabled and physically or mentally unfit to 62.18 perform the duties of the position because of sickness or injury 62.19 while engaged in covered employment,is entitled to a disability 62.20 benefit amount equivalent to an annuity computed under 62.21 subdivision 3 assuming the member has 20 years of service 62.22 qualifying under this section and waiving the minimum age 62.23 requirement. An eligible member who becomes disabled under this 62.24 subdivision with more than 20 years of service credited under 62.25 this section is entitled to a disability benefit amount 62.26 equivalent to an annuity computed under subdivision 3 based on 62.27 all years of service credited under this section and waiving the 62.28 age requirement. 62.29 Sec. 11. Minnesota Statutes 2000, section 352.95, 62.30 subdivision 4, is amended to read: 62.31 Subd. 4. [MEDICAL OR PSYCHOLOGICAL EVIDENCE.] (a) An 62.32 applicant shall provide medical or psychological evidence to 62.33 support an application for disability benefits. The director 62.34 shall have the employee examined by at least one additional 62.35 licensed physician or psychologist designated by the medical 62.36 adviser. The physicians shall make written reports to the 63.1 director concerning the employee's disability, including medical 63.2 opinions as to whether the employee is disabled within the 63.3 meaning of this section. The director shall also obtain written 63.4 certification from the employer stating whether the employee is 63.5 on sick leave of absence because of a disability that will 63.6 prevent further service to the employer, and as a consequence 63.7 the employee is not entitled to compensation from the employer. 63.8 (b) If on considering the physicians' reports and any other 63.9 evidence supplied by the employee or others, the medical adviser 63.10 finds the employee disabled within the meaning of this section, 63.11 the advisor shall make appropriate recommendation to the 63.12 director in writing, together with the date from which the 63.13 employee has been disabled. The director shall then determine 63.14 the propriety of authorizing payment of a disability benefit as 63.15 provided in this section. 63.16 (c) Unless payment of a disability benefit has terminated 63.17 because the employee is no longer disabled, or because the 63.18 employee has reached age6265 or the five-year anniversary of 63.19 the effective date of the disability benefit, whichever is 63.20 later, the disability benefit shall cease with the last payment 63.21 received by the disabled employee or which had accrued during 63.22 the employee's lifetime. While disability benefits are paid, 63.23 the director has the right at reasonable times to require the 63.24 disabled employee to submit proof of the continuance of the 63.25 disability claimed. If any examination indicates to the medical 63.26 adviser that the employee is no longer disabled, the disability 63.27 payment must be discontinued upon reinstatement to state service 63.28 or within 60 days of the finding, whichever is sooner. 63.29 Sec. 12. Minnesota Statutes 2000, section 352.95, 63.30 subdivision 5, is amended to read: 63.31 Subd. 5. [RETIREMENT STATUS AT NORMAL RETIREMENT AGE.] The 63.32 disability benefit paid to a disabled correctional employee 63.33 under this section shall terminate at the end of the month in 63.34 which the employee reaches age6265, or the five-year 63.35 anniversary of the effective date of the disability benefit, 63.36 whichever is later. If the disabled correctional employee is 64.1 still disabled when the employee reaches age6265, or the 64.2 five-year anniversary of the effective date of the disability 64.3 benefit, whichever is later, the employee shall be deemed to be 64.4 a retired employee. If the employee had elected an optional 64.5 annuity under subdivision 1a, the employee shall receive an 64.6 annuity in accordance with the terms of the optional annuity 64.7 previously elected. If the employee had not elected an optional 64.8 annuity under subdivision 1a, the employee may within 90 days of 64.9 attaining age 65 or reaching the five-year anniversary of the 64.10 effective date of the disability benefit, whichever is later, 64.11 either elect to receive a normal retirement annuity computed in 64.12 the manner provided in section 352.93 or elect to receive an 64.13 optional annuity as provided in section 352.116, subdivision 3, 64.14 based on the same length of service as used in the calculation 64.15 of the disability benefit. Election of an optional annuity must 64.16 be made within 90 days before attaining age 65 or reaching the 64.17 five-year anniversary of the effective date of the disability 64.18 benefit, whichever is later. If an optional annuity is elected, 64.19 the optional annuity shall begin to accrue on the first of the 64.20 month following the month in which the employee reaches age 65 64.21 or the five-year anniversary of the effective date of the 64.22 disability benefit, whichever is later. 64.23 Sec. 13. Minnesota Statutes 2000, section 352.95, 64.24 subdivision 7, is amended to read: 64.25 Subd. 7. [RESUMPTION OF EMPLOYMENT.] If the disabled 64.26 employee resumesagainfuloccupation from which earnings are64.27less than the salary received at the date of disability or the64.28salary currently paid for similar positions, or if the employee64.29is entitled to receive workers' compensation benefitswork, the 64.30 disability benefit must be continued in an amount which when 64.31 added to current earnings and workers' compensation benefits 64.32 does not exceed the salaryreceived at the date of disability or64.33the salary currently paid for similar positions, whichever is64.34higher, if the disability benefit in that case does not exceed64.35the disability benefit originally authorized and in effectrate 64.36 at the date of disability as adjusted by the same percentage 65.1 increase in United States average wages used by social security 65.2 in calculating average indexed monthly earnings. 65.3 Sec. 14. Minnesota Statutes 2000, section 352B.01, 65.4 subdivision 11, is amended to read: 65.5 Subd. 11. [AVERAGE MONTHLY SALARY.] "Average monthly 65.6 salary" means the average of the highest monthly salaries for 65.7 five years of service as a member. Average monthly salary must 65.8 be based upon all allowable service if this service is less than 65.9 five years. It does not include any lump sum annual leave 65.10 payments and overtime payments made at the time of separation 65.11 from state service, any amounts of severance pay, or any reduced 65.12 salary paid during the period the person is entitled to workers' 65.13 compensation benefit payments for temporary disability. A 65.14 member on leave of absence receiving temporary workers' 65.15 compensation payments and a reduced salary or no salary from the 65.16 employer who is entitled to allowable service credit for the 65.17 period of absence may make payment to the fund for the 65.18 difference between salary received, if any, and the salary the 65.19 member would normally receive if not on leave of absence during 65.20 the period. The member shall pay an amount equal to the member 65.21 and employer contribution rate under section 352B.02, 65.22 subdivisions 1b and 1c, on the differential salary amount for 65.23 the period of the leave of absence. The employing department, 65.24 at its option, may pay the employer amount on behalf of the 65.25 member. Payment made under this subdivision must include 65.26 interest at the rate of 8.5 percent per year, and must be 65.27 completed within one year of the return from the leave of 65.28 absence. 65.29 Sec. 15. Minnesota Statutes 2000, section 352B.10, 65.30 subdivision 3, is amended to read: 65.31 Subd. 3. [ANNUAL AND SICK LEAVE; WORK AT LOWER PAY.] No 65.32 member shall receive any disability benefit payment when the 65.33 member has unused annual leave or sick leave or under any other 65.34 circumstances, when during the period of disability there has 65.35 been no impairment of salary. Should the member or former 65.36 member resume gainful workand earn less than the salary66.1received at the date of disability or the salary currently paid66.2for similar positions, the disability benefit must be continued 66.3 in an amount which when added to current earnings does not 66.4 exceed the salary rate received at the date of disabilityor the66.5salary currently paid for similar positions, whichever is66.6higher. The disability benefit must not exceed the disability66.7benefit originally allowedas adjusted by the same percentage 66.8 increase in United States average wages used by social security 66.9 in calculating average indexed monthly earnings. 66.10 Sec. 16. Minnesota Statutes 2000, section 352B.101, is 66.11 amended to read: 66.12 352B.101 [APPLICATION FOR DISABILITY BENEFIT.] 66.13 A member claiming a disability benefit must file a written 66.14 application for benefits in the office of the system in a form 66.15 and manner prescribed by the executive director. The member 66.16 shall provide medical or psychological evidence to support the 66.17 application. The benefit begins to accrue the day following the 66.18 start of disability or the day following the last day for which 66.19 the member was paid, whichever is later, but not earlier than 66.20 180 days before the date the application is filed with the 66.21 executive director. 66.22 Sec. 17. Minnesota Statutes 2000, section 354.05, 66.23 subdivision 2, is amended to read: 66.24 Subd. 2. [TEACHER.] (a) "Teacher" means: 66.25 (1) a person who renders service as a teacher, supervisor, 66.26 principal, superintendent, librarian, nurse, counselor, social 66.27 worker, therapist, or psychologist in the public schools of the 66.28 state located outside of the corporate limits of the cities of 66.29 the first classor in the Minnesota state colleges and66.30universities system,or in any charitable, penal, or 66.31 correctional institutions of a governmental subdivision, or who 66.32 is engaged in educational administration in connection with the 66.33 state public school system,including the Minnesota state66.34colleges and universities system,but excluding the University 66.35 of Minnesota, whether the position be a public office or an 66.36 employment, not including members or officers of any general 67.1 governing or managing board or body; 67.2 (2) an employee of the teachers retirement association 67.3unless the employee is covered by the Minnesota state retirement67.4system due to prior employment by that system; 67.5 (3) a person who renders teaching service on a part-time 67.6 basis and who also renders other services for a single employing 67.7 unit. A person whose teaching service comprises at least 50 67.8 percent of the combined employment salary is a member of the 67.9 association for all services with the single employing unit. If 67.10 the person's teaching service comprises less than 50 percent of 67.11 the combined employment salary, the executive director must 67.12 determine whether all or none of the combined service is covered 67.13 by the association; or 67.14 (4) a person not covered by the plans established under 67.15 chapter 352D, 354A, or 354B and who is employed by the board of 67.16 trustees of the Minnesota state colleges and universities system 67.17 in an unclassified position as a: 67.18 (i) president, vice-president, or dean; 67.19 (ii) other manager or professional in an academic or 67.20 academic support program; 67.21 (iii) administrative or service support faculty; or 67.22 (iv) teacher or research assistant. 67.23 (b) Teacher does not mean: 67.24 (1) a person who works for a school or institution as an 67.25 independent contractor as defined by the Internal Revenue 67.26 Service; 67.27 (2) a person employed in subsidized on-the-job training, 67.28 work experience or public service employment as an enrollee 67.29 under the federal Comprehensive Employment and Training Act from 67.30 and after March 30, 1978, unless the person has, as of the later 67.31 of March 30, 1978, or the date of employment, sufficient service 67.32 credit in the retirement association to meet the minimum vesting 67.33 requirements for a deferred retirement annuity, or the employer 67.34 agrees in writing on forms prescribed by the executive director 67.35 to make the required employer contributions, including any 67.36 employer additional contributions, on account of that person 68.1 from revenue sources other than funds provided under the federal 68.2 Comprehensive Training and Employment Act, or the person agrees 68.3 in writing on forms prescribed by the executive director to make 68.4 the required employer contribution in addition to the required 68.5 employee contribution; 68.6 (3) a person holding a part-time adult supplementary 68.7 technical college license who renders part-time teaching service 68.8 or a customized trainer as defined by the Minnesota state 68.9 colleges and universities system in a technical college if (i) 68.10 the service is incidental to the regular nonteaching occupation 68.11 of the person; and (ii) the applicable technical college 68.12 stipulates annually in advance that the part-time teaching 68.13 service or customized training service will not exceed 300 hours 68.14 in a fiscal year and retains the stipulation in its records; and 68.15 (iii) the part-time teaching service or customized training 68.16 service actually does not exceed 300 hours in a fiscal year; or 68.17 (4) a person exempt from licensure under section 122A.30. 68.18 Sec. 18. Minnesota Statutes 2000, section 354.52, 68.19 subdivision 4, is amended to read: 68.20 Subd. 4. [REPORTING AND REMITTANCE REQUIREMENTS.] An 68.21 employer shall remit all amounts due to the association and 68.22 furnish a statement indicating the amount due and transmitted 68.23 with any other information required by the executive director. 68.24 If an amount due is not received by the association withinseven68.25 14 calendar days of the payroll warrant, the amount accrues 68.26 interest at an annual rate of 8.5 percent compounded annually 68.27 from the due date until the amount is received by the 68.28 association. All amounts due and other employer obligations not 68.29 remitted within 60 days of notification by the association must 68.30 be certified to the commissioner of finance who shall deduct the 68.31 amount from any state aid or appropriation amount applicable to 68.32 the employing unit. 68.33 Sec. 19. Minnesota Statutes 2000, section 354A.011, 68.34 subdivision 24, is amended to read: 68.35 Subd. 24. [SALARY; COVERED SALARY.] (a) "Salary" or 68.36 "covered salary" means the entire compensation, upon which 69.1 member contributions are required and made, that is paid to a 69.2 teacher beforeany allowable reductions permitted under the69.3federal Internal Revenue Code of 1986, as amended, for employee69.4selected fringe benefits, tax sheltered annuities, deferred69.5compensation, or any combination of these itemsdeductions for 69.6 deferred compensation, supplemental retirement plans, or other 69.7 voluntary salary reduction programs. 69.8 (b) "Salary" does not mean: 69.9 (1) lump sum annual leave payments; 69.10 (2) lump sum wellness and sick leave payments; 69.11 (3)payments in lieu of any employer-paid group insurance69.12coverageemployer-paid amounts used by an employee toward the 69.13 cost of insurance coverage, employer-paid fringe benefits, 69.14 flexible spending accounts, cafeteria plans, health care expense 69.15 accounts, day care expenses, or any payments in lieu of any 69.16 employer-paid group insurance coverage, including the difference 69.17 between single and family rates that may be paid to a member 69.18 with single coverage and certain amounts determined by the 69.19 executive secretary or director to be ineligible; 69.20 (4)payments for the difference between single and family69.21premium rates that may be paid to a member with single69.22coverageany form of payment made in lieu of any other 69.23 employer-paid fringe benefit or expense; 69.24 (5)employer-paid fringe benefits including, but not69.25limited to, flexible spending accounts, cafeteria plans, health69.26care expense accounts, day care expenses, or automobile69.27allowances and expensesany form of severance payments; 69.28 (6) workers' compensation payments; 69.29 (7) disability insurance payments, including self-insured 69.30 disability payments; 69.31(6)(8) payments to school principals and all other 69.32 administrators for services in addition to the normal work year 69.33 contract if these additional services are performed on an 69.34 extended duty day, Saturday, Sunday, holiday, annual leave day, 69.35 sick leave day, or any other nonduty day; 69.36(7)(9) payments under section 356.24, subdivision 1, 70.1 clause (4)(ii); and 70.2(8)(10) payments made under section 122A.40, subdivision 70.3 12, except for payments for sick leave accumulated under the 70.4 provisions of a uniform school district policy that applies 70.5 equally to all similarly situated persons in the district. 70.6 Sec. 20. [354A.107] [PAYMENT ACCEPTANCE ALLOWED.] 70.7 Payment for allowable service credit or repayment of a 70.8 prior refund or payment for an eligible leave of absence by a 70.9 member of the Minneapolis teachers retirement fund association, 70.10 the St. Paul teachers retirement fund association, or the Duluth 70.11 teachers retirement fund association, may be made with funds 70.12 distributed from a plan qualified under section 401(a), 401(k), 70.13 403(a), 403(b), or 457(b) of the federal Internal Revenue Code 70.14 of 1986, as amended from time to time, or funds distributed from 70.15 an individual retirement account used solely in a manner 70.16 eligible for treatment as a nontaxable rollover under applicable 70.17 law. The rollover must be separately accounted for as member 70.18 contributions not previously taxed. Before accepting any 70.19 transfers to which this section applies, the executive secretary 70.20 or director must require the member to provide written 70.21 documentation that the amounts to be transferred are eligible 70.22 for tax free rollover and qualify for that treatment under the 70.23 federal Internal Revenue Code of 1986, as amended. 70.24 Sec. 21. [354A.108] [PAYMENT BY TEACHERS COLLECTING 70.25 WORKERS' COMPENSATION.] 70.26 (a) A member of the Duluth teachers retirement fund 70.27 association who is receiving temporary workers' compensation 70.28 payments related to the member's teaching service and who either 70.29 is receiving a reduced salary from the employer or is receiving 70.30 no salary from the employer is entitled to purchase allowable 70.31 service credit for the period of time that the member is 70.32 receiving the workers' compensation payments. 70.33 (b) The required amount payable by the member must be 70.34 calculated first by determining the differential salary amount, 70.35 which is the difference between the salary received, if any, 70.36 during the period of time that the member is collecting workers' 71.1 compensation payments, and the salary that the member received 71.2 for an identical length period immediately before collecting the 71.3 workers' compensation payments. The member shall pay an amount 71.4 equal to the employee contribution rate under section 354A.12, 71.5 subdivision 1, multiplied by the differential salary amount. 71.6 (c) If the member makes the employee payment under this 71.7 section, the employing unit shall make an employer payment to 71.8 the Duluth teachers retirement fund association equal to the 71.9 employer contribution rate under section 354A.12, subdivision 71.10 2a, multiplied by the differential salary amount. 71.11 (d) Payments made under this subdivision are payable 71.12 without interest if paid by June 30 of the year during which the 71.13 workers' compensation payments are received by the member. If 71.14 paid after June 30, payments made under this subdivision must 71.15 include interest at the rate of 8.5 percent per year. Payment 71.16 under this section must be completed within one year of the 71.17 termination of the workers' compensation payments to the member. 71.18 Sec. 22. Minnesota Statutes 2000, section 354A.12, 71.19 subdivision 5, is amended to read: 71.20 Subd. 5. [EMPLOYEEREPORTING AND REMITTANCE REQUIREMENTS.] 71.21 (a) Eachschool districtemploying unit shall provide to the 71.22 appropriate teachers retirement fund associationinformationthe 71.23 following member data regarding all new or returning 71.24 employeeson a form provided by the executive secretary or71.25directorbefore the employee's first payroll date.in a format 71.26 approved by the executive secretary or director. Data changes 71.27 and the dates of those changes must be reported to the 71.28 association on an ongoing basis for the payroll cycle in which 71.29 they occur. Data on the member includes: 71.30 (1) legal name, address, date of birth, association member 71.31 number, employer-assigned employee number, and social security 71.32 number; 71.33 (2) association status, including, but not limited to, 71.34 basic, coordinated, exempt annuitant, exempt technical college 71.35 teacher, and exempt independent contractor or consultant; 71.36 (3) employment status, including, but not limited to, full 72.1 time, part time, intermittent, substitute, or part-time 72.2 mobility; 72.3 (4) employment position, including, but not limited to, 72.4 teacher, superintendent, principal, administrator, or other; 72.5 (5) employment activity, including, but not limited to, 72.6 hire, termination, resumption of employment, disability, or 72.7 death; 72.8 (6) leaves of absence; and 72.9 (7) other information as may be required by the association. 72.10 (b) Each employing unit shall provide the following data to 72.11 the appropriate association for each payroll cycle in a format 72.12 approved by the executive secretary or director: 72.13 (1) association member number; 72.14 (2) employer-assigned employee number; 72.15 (3) social security number; 72.16 (4) amount of each salary deduction; 72.17 (5) amount of salary as defined in section 354A.011, 72.18 subdivision 24, from which each deduction was made; 72.19 (6) reason for payment; 72.20 (7) service credit; 72.21 (8) the beginning and ending dates of the payroll period 72.22 covered and the date of actual payment; 72.23 (9) fiscal year of salary earnings; 72.24 (10) total remittance amount including employee, employer, 72.25 and employer additional contributions; and 72.26 (11) other information as may be required by the 72.27 association. 72.28 (c) On or before August 1 each year, each employing unit 72.29 must report to the appropriate association giving an itemized 72.30 summary for the preceding 12 months of the total amount withheld 72.31 from the salaries of teachers for deductions and all other 72.32 information required by the association. 72.33 (d) An employing unit that does not comply with the 72.34 reporting requirements under this section shall pay a fine of $5 72.35 per calendar day until the association receives the required 72.36 member data. 73.1 (e) An employing unit shall remit all amounts due to the 73.2 association and shall furnish for each pay period an itemized 73.3 statement indicating the total amount due and transmitted with 73.4 any other information required by the association. All amounts 73.5 due and other employer obligations not remitted within 30 days 73.6 of notification by the association must be certified to the 73.7 commissioner of finance who shall deduct the amount from any 73.8 state aid or appropriation amount applicable to the employing 73.9 unit. 73.10 Sec. 23. Minnesota Statutes 2000, section 354A.31, 73.11 subdivision 3, is amended to read: 73.12 Subd. 3. [RESUMPTION OF TEACHING AFTER COMMENCEMENT OF A 73.13 RETIREMENT ANNUITY.] (a) Any person who retired and is receiving 73.14 a coordinated program retirement annuity under the provisions of 73.15 sections 354A.31 to 354A.41 or any person receiving a basic 73.16 program retirement annuity under the governing sections in the 73.17 articles of incorporation or bylaws and who has resumed teaching 73.18 service for the school district in which the teachers retirement 73.19 fund association exists is entitled to continue to receive 73.20 retirement annuity payments, except that annuity payments must 73.21 be reduced during the calendar year immediately following the 73.22 calendar year in which the person's income from the teaching 73.23 service is in an amount greater than the annual maximum earnings 73.24 allowable for that age for the continued receipt of full benefit 73.25 amounts monthly under the federal old age, survivors, and 73.26 disability insurance program as set by the secretary of health 73.27 and human services under United States Code, title 42, section 73.28 403. The amount of the reduction must be one-third the amount 73.29 in excess of the applicable reemployment income maximum 73.30 specified in this subdivision and must be deducted from the 73.31 annuity payable for the calendar year immediately following the 73.32 calendar year in which the excess amount was earned. If the 73.33 person has not yet reached the minimum age for the receipt of 73.34 social security benefits, the maximum earnings for the person 73.35 must be equal to the annual maximum earnings allowable for the 73.36 minimum age for the receipt of social security benefits. 74.1 (b) If the person is retired for only a fractional part of 74.2 the calendar year during the initial year of retirement, the 74.3 maximum reemployment income specified in this subdivision must 74.4 be prorated for that calendar year. 74.5 (c) After a person has reached the age of 70, no 74.6 reemployment income maximum is applicable regardless of the 74.7 amount of any compensation received for teaching service for the 74.8 school district in which the teachers retirement fund 74.9 association exists. 74.10 (d) The amount of the retirement annuity reduction must be 74.11 handled or disposed of as provided in section 356.58. 74.12 (e) For the purpose of this subdivision, income from 74.13 teaching service includes: (i) all income for services 74.14 performed as a consultant or independent contractor; or income 74.15 resulting from working with the school district in any capacity; 74.16 and (ii) the greater of either the income received or an amount 74.17 based on the rate paid with respect to an administrative 74.18 position, consultant, or independent contractor in the school 74.19 district in which the teachers retirement fund association 74.20 exists and at the same level as the position occupied by the 74.21 person who resumes teaching service. 74.22 (f) On or before February 15 of each year, each employing 74.23 unit shall report to the teachers retirement fund association 74.24 the amount of postretirement income as defined in this section, 74.25 earned as a teacher, consultant, or independent contractor 74.26 during the previous calendar year by each retiree of a teachers 74.27 retirement fund association for teaching service performed after 74.28 retirement. The report shall be in a format approved by the 74.29 executive secretary or director. 74.30 Sec. 24. Minnesota Statutes 2000, section 354A.35, 74.31 subdivision 4, is amended to read: 74.32 Subd. 4. [PAYMENT OF MINIMAL REFUND AND BENEFIT AMOUNTS.] 74.33 If a coordinated member or former coordinated member dies 74.34 without having designated a beneficiary or if the designated 74.35 beneficiary dies without there existing any other designated 74.36 beneficiary and prior to making application for the refund 75.1 credited to the deceased coordinated member or coordinated 75.2 former member, and if the amount of the refund does not 75.3 exceed$500$1,500, the board in its discretion may, in absence 75.4 of probate proceedings, make payment 90 days after the date of 75.5 death of the coordinated member or former coordinated member to 75.6 the surviving spouse of the deceased coordinated member or 75.7 former coordinated member, or if none, to the next of kin as 75.8 determined under the laws of descent of the state. A payment 75.9 under this subdivision shall be a bar to recovery by any other 75.10 person or persons. Any retirement annuity in any amount which 75.11 has accrued at the time of the death of a coordinated retiree 75.12 may be paid by the board in its discretion using the procedure 75.13 set forth in this subdivision. 75.14 Sec. 25. [356.866] [CONVERSION OF LUMP SUM POSTRETIREMENT 75.15 AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.] 75.16 Subdivision 1. [LUMP SUM POSTRETIREMENT PAYMENT 75.17 CONVERSION.] For benefits paid after December 31, 2001, to 75.18 eligible persons under sections 356.86 and 356.865, the amount 75.19 of the most recent lump sum benefit payable to an eligible 75.20 recipient under sections 356.86 and 356.865, must be divided by 75.21 12 and the result must be added to the monthly annuity or 75.22 benefit otherwise payable to an eligible recipient and become a 75.23 permanent part of the benefit recipient's pension and included 75.24 in any pension benefit subject to future increases. 75.25 Subd. 2. [TRANSFER OF REQUIRED RESERVES TO MINNESOTA 75.26 POSTRETIREMENT INVESTMENT FUND.] Public employee retirement 75.27 funds participating in the state board of investment 75.28 postretirement investment fund shall transfer the required 75.29 reserves for the postretirement conversion under subdivision 1 75.30 to the postretirement investment fund by January 31, 2002. 75.31 Sec. 26. Minnesota Statutes 2000, section 356A.06, 75.32 subdivision 5, is amended to read: 75.33 Subd. 5. [INVESTMENT BUSINESS RECIPIENT DISCLOSURE.] The 75.34 chief administrative officer of a covered pension plan, with 75.35 respect to investments made by the plan, and the executive 75.36 director of the state board of investment, with respect to 76.1 investments of plan assets made by the board, shall annually 76.2 disclose in writing the recipients of investment business placed 76.3 with or investment commissions allocated among commercial banks, 76.4 investment bankers, brokerage organizations, or other investment 76.5 managers. The disclosure document must be prepared within 60 76.6 days after the close of the fiscal year of the plan and must be 76.7 available for public inspection during regular office hours at 76.8 the office of the plan. The disclosure document must also be 76.9 filed with the executive director of the legislative commission 76.10 on pensions and retirement within 90 days after the close of the 76.11 fiscal year of the plan. For the state board of investment and 76.12 a first class city teacher pension fund, a disclosure document 76.13 included as part of a regular annual report of the board or the 76.14 first class city teacher pension fund when filed with the 76.15 executive director of the legislative commission on pensions and 76.16 retirement is considered to have been filed on a timely basis. 76.17 Sec. 27. Minnesota Statutes 2000, section 490.121, 76.18 subdivision 4, is amended to read: 76.19 Subd. 4. [ALLOWABLE SERVICE.] "Allowable service" meansa76.20whole year, or any fraction thereofany calendar month, subject 76.21 to the service credit limit in subdivision 22, served as a judge 76.22 at any time, or served as a referee in probate for all referees 76.23 in probate who were in office prior to January 1, 1974. 76.24 Sec. 28. [DELAYED EFFECTIVE DATE.] 76.25 Notwithstanding Laws 2000, chapter 461, article 10, section 76.26 3, the amendment to Minnesota Statutes, section 353E.03, made by 76.27 Laws 2000, chapter 461, article 10, section 2, is effective on 76.28 the first day of the first full pay period beginning after 76.29 January 1, 2003. 76.30 Sec. 29. [APPROPRIATION.] 76.31 $2,500,000 in the fiscal year ending June 30, 2002, and 76.32 $2,500,000 in the fiscal year ending June 30, 2003, are 76.33 appropriated from the general fund to the commissioner of 76.34 finance for transfer to the public employees retirement 76.35 association general employees retirement fund. 76.36 Sec. 30. [REPEALER.] 77.1 Minnesota Statutes 2000, section 354A.026, is repealed. 77.2 Sec. 31. [EFFECTIVE DATE.] 77.3 (a) Sections 1 to 20, 22 to 24, 26, 27, and 30 are 77.4 effective on July 1, 2001. 77.5 (b) Section 21 is effective on May 1, 2001. 77.6 (c) Section 25 is effective on January 1, 2002. 77.7 ARTICLE 13 77.8 STATE PATROL RETIREMENT PLAN MEMBERSHIP EXPANSION 77.9 Section 1. Minnesota Statutes 2000, section 352.01, 77.10 subdivision 2b, is amended to read: 77.11 Subd. 2b. [EXCLUDED EMPLOYEES.] "State employee" does not 77.12 include: 77.13 (1) elective state officers; 77.14 (2) students employed by the University of Minnesota, the 77.15 state universities, and community colleges unless approved for 77.16 coverage by the board of regents or the board of trustees of the 77.17 Minnesota state colleges and universities, as the case may be; 77.18 (3) employees who are eligible for membership in the state 77.19 teachers retirement association except employees of the 77.20 department of children, families, and learning who have chosen 77.21 or may choose to be covered by the Minnesota state retirement 77.22 system instead of the teachers retirement association; 77.23 (4) employees of the University of Minnesota who are 77.24 excluded from coverage by action of the board of regents; 77.25 (5) officers and enlisted personnel in the national guard 77.26 and the naval militia who are assigned to permanent peacetime 77.27 duty and who under federal law are or are required to be members 77.28 of a federal retirement system; 77.29 (6) election officers; 77.30 (7) persons engaged in public work for the state but 77.31 employed by contractors when the performance of the contract is 77.32 authorized by the legislature or other competent authority; 77.33 (8) officers and employees of the senate and house of 77.34 representatives or a legislative committee or commission who are 77.35 temporarily employed; 77.36 (9) receivers, jurors, notaries public, and court employees 78.1 who are not in the judicial branch as defined in section 43A.02, 78.2 subdivision 25, except referees and adjusters employed by the 78.3 department of labor and industry; 78.4 (10) patient and inmate help in state charitable, penal, 78.5 and correctional institutions including the Minnesota veterans 78.6 home; 78.7 (11) persons employed for professional services where the 78.8 service is incidental to regular professional duties and whose 78.9 compensation is paid on a per diem basis; 78.10 (12) employees of the Sibley House Association; 78.11 (13) the members of any state board or commission who serve 78.12 the state intermittently and are paid on a per diem basis; the 78.13 secretary, secretary-treasurer, and treasurer of those boards if 78.14 their compensation is $5,000 or less per year, or, if they are 78.15 legally prohibited from serving more than three years; and the 78.16 board of managers of the state agricultural society and its 78.17 treasurer unless the treasurer is also its full-time secretary; 78.18 (14) state troopers; 78.19 (15) temporary employees of the Minnesota state fair 78.20 employed on or after July 1 for a period not to extend beyond 78.21 October 15 of that year; and persons employed at any time by the 78.22 state fair administration for special events held on the 78.23 fairgrounds; 78.24 (16) emergency employees in the classified service; except 78.25 that if an emergency employee, within the same pay period, 78.26 becomes a provisional or probationary employee on other than a 78.27 temporary basis, the employee shall be considered a "state 78.28 employee" retroactively to the beginning of the pay period; 78.29 (17) persons described in section 352B.01, subdivision 2, 78.30 clauses (2) to(5)(6); 78.31 (18) temporary employees in the classified service, and 78.32 temporary employees in the unclassified service appointed for a 78.33 definite period of not more than six months and employed less 78.34 than six months in any one-year period; 78.35 (19) trainee employees, except those listed in subdivision 78.36 2a, clause (10); 79.1 (20) persons whose compensation is paid on a fee basis; 79.2 (21) state employees who in any year have credit for 12 79.3 months service as teachers in the public schools of the state 79.4 and as teachers are members of the teachers retirement 79.5 association or a retirement system in St. Paul, Minneapolis, or 79.6 Duluth; 79.7 (22) employees of the adjutant general employed on an 79.8 unlimited intermittent or temporary basis in the classified and 79.9 unclassified service for the support of army and air national 79.10 guard training facilities; 79.11 (23) chaplains and nuns who are excluded from coverage 79.12 under the federal Old Age, Survivors, Disability, and Health 79.13 Insurance Program for the performance of service as specified in 79.14 United States Code, title 42, section 410(a)(8)(A), as amended, 79.15 if no irrevocable election of coverage has been made under 79.16 section 3121(r) of the Internal Revenue Code of 1986, as amended 79.17 through December 31, 1992; 79.18 (24) examination monitors employed by departments, 79.19 agencies, commissions, and boards to conduct examinations 79.20 required by law; 79.21 (25) persons appointed to serve as members of fact-finding 79.22 commissions or adjustment panels, arbitrators, or labor referees 79.23 under chapter 179; 79.24 (26) temporary employees employed for limited periods under 79.25 any state or federal program for training or rehabilitation 79.26 including persons employed for limited periods from areas of 79.27 economic distress except skilled and supervisory personnel and 79.28 persons having civil service status covered by the system; 79.29 (27) full-time students employed by the Minnesota 79.30 historical society intermittently during part of the year and 79.31 full-time during the summer months; 79.32 (28) temporary employees, appointed for not more than six 79.33 months, of the metropolitan council and of any of its statutory 79.34 boards, if the board members are appointed by the metropolitan 79.35 council; 79.36 (29) persons employed in positions designated by the 80.1 department of employee relations as student workers; 80.2 (30) members of trades employed by the successor to the 80.3 metropolitan waste control commission with trade union pension 80.4 plan coverage under a collective bargaining agreement first 80.5 employed after June 1, 1977; 80.6 (31) persons employed in subsidized on-the-job training, 80.7 work experience, or public service employment as enrollees under 80.8 the federal Comprehensive Employment and Training Act after 80.9 March 30, 1978, unless the person has as of the later of March 80.10 30, 1978, or the date of employment sufficient service credit in 80.11 the retirement system to meet the minimum vesting requirements 80.12 for a deferred annuity, or the employer agrees in writing on 80.13 forms prescribed by the director to make the required employer 80.14 contributions, including any employer additional contributions, 80.15 on account of that person from revenue sources other than funds 80.16 provided under the federal Comprehensive Employment and Training 80.17 Act, or the person agrees in writing on forms prescribed by the 80.18 director to make the required employer contribution in addition 80.19 to the required employee contribution; 80.20 (32) off-duty peace officers while employed by the 80.21 metropolitan council; 80.22 (33) persons who are employed as full-time police officers 80.23 by the metropolitan council and as police officers are members 80.24 of the public employees police and fire fund; 80.25 (34) persons who are employed as full-time firefighters by 80.26 the department of military affairs and as firefighters are 80.27 members of the public employees police and fire fund; 80.28 (35) foreign citizens with a work permit of less than three 80.29 years, or an H-1b/JV visa valid for less than three years of 80.30 employment, unless notice of extension is supplied which allows 80.31 them to work for three or more years as of the date the 80.32 extension is granted, in which case they are eligible for 80.33 coverage from the date extended; and 80.34 (36) persons who are employed by the board of trustees of 80.35 the Minnesota state colleges and universities and who elect to 80.36 remain members of the public employees retirement association or 81.1 the Minneapolis employees retirement fund, whichever applies, 81.2 under section 136C.75. 81.3 Sec. 2. Minnesota Statutes 2000, section 352B.01, 81.4 subdivision 2, is amended to read: 81.5 Subd. 2. [MEMBER.] "Member" means: 81.6(a) persons referred to and(1) a state patrol member 81.7 currently employed after June 30, 1943, underLaws 1929, chapter81.8355, as amended or supplemented, currently employedsection 81.9 299D.03 by the state, who is a peace officer under section 81.10 626.84, and whosesalariessalary or compensation is paid out of 81.11 state funds; 81.12(b)(2) a conservation officer employed under section 81.13 97A.201, currently employed by the state, whose salary or 81.14 compensation is paid out of state funds; 81.15(c)(3) a crime bureau officer who was employed by the 81.16 crime bureau and was a member of the highway patrolmen's 81.17 retirement fund on July 1, 1978, whether or not that person has 81.18 the power of arrest by warrant after that date, or who is 81.19 employed as police personnel, with powers of arrest by warrant 81.20 under section 299C.04, and who is currently employed by the 81.21 state, and whose salary or compensation is paid out of state 81.22 funds; 81.23(d)(4) a person who is employed by the state in the 81.24 department of public safety in a data processing management 81.25 position with salary or compensation paid from state funds, who 81.26 was a crime bureau officer covered by the state patrol 81.27 retirement plan on August 15, 1987, and who was initially hired 81.28 in the data processing management position within the department 81.29 during September 1987, or January 1988, with membership 81.30 continuing for the duration of the person's employment in that 81.31 position, whether or not the person has the power of arrest by 81.32 warrant after August 15, 1987;and81.33(e)(5) a public safetyemployeesemployee defined as a 81.34 peaceofficersofficer in section 626.84, subdivision 1, 81.35 paragraph (c), and employed with the division of alcohol and 81.36 gambling enforcement under section 299L.01; and 82.1 (6) a fugitive apprehension unit officer after October 31, 82.2 2000, employed by the office of special investigations of the 82.3 department of corrections who is a peace officer under section 82.4 626.84. 82.5 Sec. 3. [DISPOSITION OF CERTAIN CONTRIBUTIONS.] 82.6 (a) The employee contributions for the period November 1, 82.7 2000, to the effective date of this section for a person 82.8 described in Minnesota Statutes, section 352B.01, subdivision 2, 82.9 clause (6), must be transferred, with 8.5 percent per annum 82.10 interest for the period from the date of the contribution to the 82.11 date of transfer, from the general state employees retirement 82.12 plan of the Minnesota state retirement system to the state 82.13 patrol retirement fund. 82.14 (b) The employer contributions associated with the employee 82.15 contributions governed by paragraph (a) also must be transferred 82.16 for the period from the date of the contribution to the date of 82.17 transfer, with 8.5 percent per annum interest, from the general 82.18 state employees retirement plan of the Minnesota state 82.19 retirement system to the state patrol retirement fund. 82.20 (c) A person described in Minnesota Statutes, section 82.21 352B.01, subdivision 2, clause (6), must pay, by additional 82.22 payroll deduction, to the state patrol retirement fund an amount 82.23 equal to the difference between the transferred employee 82.24 contributions and interest and the full member contribution 82.25 under Minnesota Statutes, section 352B.02, subdivision 1a, plus 82.26 8.5 percent per annum interest on the balance from March 1, 82.27 2001, to the date the additional payment is complete. The 82.28 additional payment must be completed by December 31, 2001, or by 82.29 the date of retirement, whichever is earlier. 82.30 (d) The department of corrections, for each person 82.31 described in Minnesota Statutes, section 352B.01, subdivision 2, 82.32 clause (6), must pay, in a lump sum on July 1, 2001, to the 82.33 state patrol retirement fund an amount equal to the difference 82.34 between the transferred employer contributions and interest and 82.35 the full employer contribution under Minnesota Statutes, section 82.36 352B.02, subdivision 1c, plus 8.5 percent per annum interest on 83.1 the amount from March 1, 2001, to July 1, 2001. 83.2 Sec. 4. [EFFECTIVE DATE.] 83.3 Sections 1 and 2 are effective retroactively to November 1, 83.4 2000. Section 3 is effective on the day following final 83.5 enactment. 83.6 ARTICLE 14 83.7 REMEDIAL MEASURES FOR THE PERA-GENERAL FUNDING DEFICIENCY 83.8 Section 1. Minnesota Statutes 2000, section 353.01, 83.9 subdivision 1, is amended to read: 83.10 Subdivision 1. [TERMS.] Unless the language or context 83.11 clearly indicates that a different meaning is intended, each of 83.12 the following terms, for the purposes of this chapter,shall83.13behave the meaning giventhe meanings subjoined to themit. 83.14 Sec. 2. Minnesota Statutes 2000, section 353.01, 83.15 subdivision 2, is amended to read: 83.16 Subd. 2. [PUBLIC EMPLOYEE.] "Public employee" meansana 83.17 governmental employee performing personal services for a 83.18 governmental subdivisionunderdefined in subdivision 6, whose 83.19 salary is paid, in whole or in part, from revenue derived from 83.20 taxation, fees, assessments, or from other sources. The 83.21 termalsoincludesspecialthe classes of persons described or 83.22 listed in subdivision 2a, but. The term also includes persons 83.23 who elect association membership under subdivision 2d, paragraph 83.24 (a), and persons for whom the applicable governmental 83.25 subdivision had elected association membership under subdivision 83.26 2d, paragraph (b). The term excludesspecialthe classes of 83.27 persons listed in subdivision 2b for purposes of membership in 83.28 the association.Public employee does not include independent83.29contractors and their employees. A reemployed annuitant under83.30section 353.37 must not be considered to be a public employee83.31for purposes of that reemployment.83.32 Sec. 3. Minnesota Statutes 2000, section 353.01, 83.33 subdivision 2a, is amended to read: 83.34 Subd. 2a. [INCLUDED EMPLOYEES.] (a) Public employeeswhose83.35salary from one governmental subdivision exceeds $425 in any83.36month shall participate as members of the association. If the84.1salary of an employee is less than $425 in a subsequent month,84.2the employee retains membership eligibility. The following84.3persons are considered public employees:84.4(1) employees whose annual salary from one governmental84.5subdivision exceeds a stipulation prepared in advance, in84.6writing, to be not more than $5,100 per calendar year or per84.7school year for school employees for employment expected to be84.8of a full year's duration or more than the prorated portion of84.9$5,100 per employment period expected to be of less than a full84.10year's duration. If compensation from one governmental84.11subdivision to an employee under this clause exceeds $5,100 per84.12calendar year or school year after being stipulated in advance84.13not to exceed that amount, the stipulation is no longer valid84.14and contributions must be made on behalf of the employee under84.15section 353.27, subdivision 12, from the month in which the84.16employee's salary first exceeded $425;84.17(2) employees whose total salary from concurrent84.18nontemporary positions in one governmental subdivision exceeds84.19$425 in any month;84.20(3) elected officers for service to which they were elected84.21by the public-at-large, or persons appointed to fill a vacancy84.22in an elective office, who elect to participate by filing an84.23application for membership, but not for service on a joint or84.24regional board that is a governmental subdivision under84.25subdivision 6, paragraph (a), unless the salary earned for that84.26service exceeds $425 in any month. The option to become a84.27member, once exercised, may not be withdrawn during the84.28incumbency of the person in office;84.29(4) members who are appointed by the governor to be a state84.30department head and elect not to be covered by the Minnesota84.31state retirement system under section 352.021;84.32(5) employees of elected officers;84.33(6) persons who elect to remain members under section84.34480.181, subdivision 2;84.35(7) employees of a school district who receive separate84.36salaries for driving their own buses;85.1(8) employees of the Minnesota association of townships85.2when the board of the association, at its option, certifies to85.3the executive director that its employees are to be included for85.4purposes of retirement coverage, in which case coverage of all85.5employees of the association is permanent;85.6(9) employees of a county historical society who are county85.7employees;85.8(10) employees of a county historical society located in85.9the county whom the county, at its option, certifies to the85.10executive director to be county employees for purposes of85.11retirement coverage under this chapter, which status must be85.12accorded to all similarly situated county historical society85.13employees and, once established, must continue as long as a85.14person is an employee of the county historical society and is85.15not excluded under subdivision 2b; and85.16(11) employees who became members before July 1, 1988,85.17based on the total salary of positions held in more than one85.18governmental subdivision.shall participate as members of the 85.19 association with retirement coverage by the public employees 85.20 retirement plan or the public employees police and fire 85.21 retirement plan under this chapter, or the local government 85.22 correctional employees retirement plan under chapter 353E, 85.23 whichever applies, as a condition of their employment on the 85.24 first day of employment unless they: 85.25 (1) are specifically excluded under subdivision 2b; 85.26 (2) do not exercise their option to elect retirement 85.27 coverage in the association as provided in subdivision 2d, 85.28 paragraph (a); or 85.29 (3) are employees of the governmental subdivisions listed 85.30 in subdivision 2d, paragraph (b), where the governmental 85.31 subdivision has not elected to participate as a governmental 85.32 subdivision covered by the association. 85.33 (b) A public employee who was a member of the association 85.34 on June 30, 2002, based on employment that qualified for 85.35 membership coverage by the public employees retirement plan or 85.36 the public employees police and fire plan under this chapter, or 86.1 the local government correctional employees retirement plan 86.2 under chapter 353E as of June 30, 2002, retains that membership 86.3 until the employee terminates public employment under 86.4 subdivision 11a or terminates membership under subdivision 11b. 86.5 Sec. 4. Minnesota Statutes 2000, section 353.01, 86.6 subdivision 2b, is amended to read: 86.7 Subd. 2b. [EXCLUDED EMPLOYEES.] The following public 86.8 employeesshallare not eligible to participate as members of 86.9 the association with retirement coverage by the public employees 86.10 retirement plan, the local government correctional employees 86.11 retirement plan under chapter 353E, or the public employees 86.12 police and fire retirement plan: 86.13 (1)electedpublic officers, other than county sheriffs, 86.14 who are elected to a governing body, or persons who are 86.15 appointed to fill a vacancy in an elective officewho do not86.16elect to participate in the association by filing an application86.17for membershipof a governing body, whose term of office first 86.18 commences on or after July 1, 2002, for the service to be 86.19 rendered in that elective position. Elected governing body 86.20 officials who were active members of the association's 86.21 coordinated or basic retirement plans as of June 30, 2002, 86.22 continue participation throughout incumbency in office until 86.23 termination of public service occurs as defined in subdivision 86.24 11a; 86.25 (2) election officers or election judges; 86.26 (3) patient and inmate personnel who perform servicesin86.27charitable, penal, or correctional institutions offor a 86.28 governmental subdivision; 86.29 (4) employees who are hired for a temporary position under 86.30 subdivision 12a, and employees who resign from a nontemporary 86.31 position and accept a temporary position within 30 days in the 86.32 same governmental subdivision, but not those. An employer must 86.33 not apply the definition of temporary position so as to exclude 86.34 employees who are hiredfor an unlimited periodto fill 86.35 positions that are permanent or that are for an unspecified 86.36 period but who are serving a probationary period at the start of 87.1 the employment. If the period of employment extends beyond six 87.2 consecutive monthsand the employee earns more than $425 from87.3one governmental subdivision in any one calendar month, the 87.4 department head shall report the employee for membership and 87.5 require employee deductions be made on behalf of the employee 87.6 under section 353.27, subdivision 4. 87.7 The membership eligibility of an employee who resigns or is 87.8 dismissed from a temporary position and within 30 days accepts 87.9 another temporary position in the same governmental subdivision 87.10 is determined on the total length of employment rather than on 87.11 each separate position. Membership eligibility of an employee 87.12 who holds concurrent temporary and nontemporary positions in one 87.13 governmental subdivision is determined by the length of 87.14 employment and salary of each separate position; 87.15 (5)employees whose actual salary from one governmental87.16subdivision does not exceed $425 per month, or whose annual87.17salary from one governmental subdivision does not exceed a87.18stipulation prepared in advance, in writing, that the salary87.19must not exceed $5,100 per calendar year or per school year for87.20school employees for employment expected to be of a full year's87.21duration or more than the prorated portion of $5,100 per87.22employment period for employment expected to be of less than a87.23full year's duration;87.24(6)employees who are employed by reason of work emergency 87.25 caused by fire, flood, storm, or similar disaster; 87.26(7)(6) employees who by virtue of their employment in one 87.27 governmental subdivision are required by law to be a member of 87.28 and to contribute to any of the plans or funds administered by 87.29 the Minnesota state retirement system, the teachers retirement 87.30 association, the Duluth teachers retirement fund association, 87.31 the Minneapolis teachers retirement association, the St. Paul 87.32 teachers retirement fund association, the Minneapolis employees 87.33 retirement fund, or any police or firefighters relief 87.34 association governed by section 69.77 that has not consolidated 87.35 with the public employees retirement association, or any local 87.36 police or firefighters consolidation account but who have not 88.1 elected the type of benefit coverage provided by the public 88.2 employees police and fire fund under sections 353A.01 to 88.3 353A.10, or any persons covered by section 353.665, subdivision 88.4 4, 5, or 6, who have not elected public employees police and 88.5 fire plan benefit coverage. This clause must not be construed 88.6 to prevent a person from being a member of and contributing to 88.7 the public employees retirement association and also belonging 88.8 to and contributing to another public pension fund for other 88.9 service occurring during the same period of time. A person who 88.10 meets the definition of "public employee" in subdivision 2 by 88.11 virtue of other service occurring during the same period of time 88.12 becomes a member of the association unless contributions are 88.13 made to another public retirement fund on the salary based on 88.14 the other serviceor to the teachers retirement association by a88.15teacher as defined in section 354.05, subdivision 2; 88.16(8)(7) persons who are members of a religious order and 88.17 are excluded from coverage under the federal Old Age, Survivors, 88.18 Disability, and Health Insurance Program for the performance of 88.19 service as specified in United States Code, title 42, section 88.20 410(a)(8)(A), as amended through January 1, 1987, if no 88.21 irrevocable election of coverage has been made under section 88.22 3121(r) of the Internal Revenue Code of 1954, as amended; 88.23(9) full-time students who(8) employees who at the time 88.24 they are hired by a governmental subdivision are enrolledandon 88.25 a full-time basis to attend or areregularlyattending classes 88.26 at an accredited school, college, or universityand who are88.27part-time employees as defined by a governmental subdivisionin 88.28 an undergraduate, graduate, or professional-technical program, 88.29 or a public or charter high school, if the employment is 88.30 predicated on the student status of the individual; 88.31(10)(9) resident physicians, medical interns, and 88.32 pharmacist residents and pharmacist interns who are serving in a 88.33 degree or residency program in public hospitals; 88.34(11)(10) students who are serving in an internship or 88.35 residency program sponsored by an accredited educational 88.36 institution; 89.1(12)(11) persons who hold a part-time adult supplementary 89.2 technical college license who render part-time teaching service 89.3 in a technical college; 89.4(13)(12) foreign citizens working for a governmental 89.5 subdivision with a work permit of less than three years, or an 89.6 H-1b visa valid for less than three years of employment. Upon 89.7 notice to the association that the work permit or visa extends 89.8 beyond the three-year period, the foreign citizens are eligible 89.9 for membership from the date of the extension; 89.10(14)(13) public hospital employees who elected not to 89.11 participate as members of the association before 1972 and who 89.12 did not elect to participate from July 1, 1988, to October 1, 89.13 1988; 89.14(15)(14) except as provided in section 353.86, volunteer 89.15 ambulance service personnel, as defined in subdivision 35, but 89.16 persons who serve as volunteer ambulance service personnel may 89.17 still qualify as public employees under subdivision 2 and may be 89.18 members of the public employees retirement association and 89.19 participants in the public employees retirement fund or the 89.20 public employees police and fire fund, whichever applies, on the 89.21 basis of compensation received from public employment service 89.22 other than service as volunteer ambulance service personnel; 89.23(16)(15) except as provided in section 353.87, volunteer 89.24 firefighters, as defined in subdivision 36, engaging in 89.25 activities undertaken as part of volunteer firefighter duties; 89.26 provided that a person who is a volunteer firefighter may still 89.27 qualify as a public employee under subdivision 2 and may be a 89.28 member of the public employees retirement association and a 89.29 participant in the public employees retirement fund or the 89.30 public employees police and fire fund, whichever applies, on the 89.31 basis of compensation received from public employment activities 89.32 other than those as a volunteer firefighter; 89.33(17) pipefitters and associated trades personnel employed89.34by independent school district No. 625, St. Paul, with coverage89.35by the pipefitters local 455 pension plan under a collective89.36bargaining agreement who were either first employed after May 1,90.11997, or, if first employed before May 2, 1997, elected to be90.2excluded under Laws 1997, chapter 241, article 2, section 12;90.3and90.4(18)(16) electrical workers, plumbers, carpenters, and 90.5 associated trades personnel employed byindependent school90.6district No. 625, St. Paul, orthe city of St. Paul,withwho 90.7 have retirement coverage by the electrical workers local 110 90.8 pension plan, the united association plumbers local 34 pension 90.9 plan, or the carpenters local 87 pension plan under a collective 90.10 bargaining agreement who were either first employed after May 1, 90.11 2000, or, if first employed before May 2, 2000, elected to be 90.12 excluded under Laws 2000, chapter 461, article 7, section 5.; 90.13 (17) employees who are hired after June 30, 2002, to fill 90.14 seasonal positions under subdivision 12b which are limited in 90.15 duration by the employer to 185 consecutive calendar days or 90.16 less in each business year of the governmental subdivision; 90.17 (18) persons who are provided supported employment or 90.18 work-study positions by a governmental subdivision and who 90.19 participate in an employment or industries program maintained 90.20 for the benefit of these persons where the governmental 90.21 subdivision limits the position's duration to three years or 90.22 less, including persons participating in a federal or state 90.23 subsidized on-the-job training, work experience, senior citizen, 90.24 youth, or unemployment relief program where the training or work 90.25 experience is not provided as a part of, or for, future 90.26 permanent public employment; 90.27 (19) independent contractors and the employees of 90.28 independent contractors; 90.29 (20) reemployed annuitants of the association during the 90.30 course of that reemployment; and 90.31 (21) employees of a common school district as defined in 90.32 section 120A.05, subdivision 5, an independent school district 90.33 as defined in section 120A.05, subdivision 10, a special school 90.34 district as defined in section 120A.05, subdivision 14, any 90.35 instrumentality of a common, independent, or special school 90.36 district, or any governmental entity comprised wholly of common, 91.1 independent, or special school districts. 91.2 Sec. 5. Minnesota Statutes 2000, section 353.01, is 91.3 amended by adding a subdivision to read: 91.4 Subd. 2d. [OPTIONAL MEMBERSHIP.] (a) Membership in the 91.5 association is optional by action of the individual employee for 91.6 the following public employees who meet the conditions set forth 91.7 in subdivision 2a: 91.8 (1) members of the coordinated plan who are also employees 91.9 of labor organizations as defined in section 353.017, 91.10 subdivision 1, for their employment by the labor organization 91.11 only if they elect to have membership under section 353.017, 91.12 subdivision 2; 91.13 (2) persons who are elected or persons who are appointed to 91.14 elected positions other than local governing body elected 91.15 positions who elect to participate by filing a written election 91.16 for membership; 91.17 (3) members of the association who are appointed by the 91.18 governor to be a state department head and who elect not to be 91.19 covered by the general state employees retirement plan of the 91.20 Minnesota state retirement system under section 352.021; and 91.21 (4) city managers as defined in section 353.028, 91.22 subdivision 1, who do not elect to be excluded from membership 91.23 in the association under section 353.028, subdivision 2. 91.24 (b) Membership in the association is optional by action of 91.25 the governmental subdivision for the employees of the following 91.26 governmental subdivisions under the conditions specified: 91.27 (1) the Minnesota association of townships if the board of 91.28 the association, at its option, certifies to the executive 91.29 director that its employees are to be included for purposes of 91.30 retirement coverage, in which case the status of the association 91.31 as a participating employer is permanent; and 91.32 (2) a county historical society if the county in which the 91.33 historical society is located, at its option, certifies to the 91.34 executive director that the employees of the historical society 91.35 are to be county employees for purposes of retirement coverage 91.36 under this chapter. The status as a county employee must be 92.1 accorded to all similarly situated county historical society 92.2 employees and, once established, must continue as long as a 92.3 person is an employee of the county historical society. 92.4 (c) For employees who are covered by paragraph (a), clause 92.5 (1), (2), or (3), or covered by paragraph (b), if the necessary 92.6 membership election is not made, the employee is excluded from 92.7 retirement coverage under this chapter. For employees who are 92.8 covered by paragraph (a), clause (4), if the necessary election 92.9 is not made, the employee must become a member and have 92.10 retirement coverage under this chapter. The option to become a 92.11 member, once exercised under this subdivision, may not be 92.12 withdrawn until termination of public service as defined under 92.13 subdivision 11a. 92.14 Sec. 6. Minnesota Statutes 2000, section 353.01, 92.15 subdivision 6, is amended to read: 92.16 Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 92.17 subdivision" means a county, city, or town, school district92.18 within this state, or a department or unit of state government, 92.19 or any public body whose revenues are derived from taxation, 92.20 fees, assessments or from other sources. 92.21 (b) Governmental subdivision also means the public 92.22 employees retirement association, the league of Minnesota 92.23 cities, the association of metropolitan municipalities, public 92.24 hospitals owned or operated by, or an integral part of, a 92.25 governmental subdivision or governmental subdivisions, the 92.26 association of Minnesota counties, the metropolitan intercounty 92.27 association, the Minnesota municipal utilities association, the 92.28 metropolitan airports commission, the Minneapolis employees 92.29 retirement fund for employment initially commenced after June 92.30 30, 1979, the range association of municipalities and schools, 92.31 soil and water conservation districts, and economic development 92.32 authorities created or operating under sections 469.090 to 92.33 469.108. 92.34 (c) Governmental subdivision does not mean a school 92.35 district; any municipal housing and redevelopment authority 92.36 organized under the provisions of sections 469.001 to 469.047; 93.1 or any port authority organized under sections 469.048 to 93.2 469.089; or any hospital district organized or reorganized prior 93.3 to July 1, 1975, under sections 447.31 to 447.37 or the 93.4 successor of the district, nor the Minneapolis community 93.5 development agency. 93.6 Sec. 7. Minnesota Statutes 2000, section 353.01, 93.7 subdivision 7, is amended to read: 93.8 Subd. 7. [MEMBER.] "Member" means a person who accepts 93.9 employment as a "public employee" under subdivision 2, who is an 93.10 employee who works in one or more positions that require or 93.11 allow membership in the association under subdivision 2a or 93.12 2d, for whom contributions have been withheld from salary and 93.13 who is not covered by the plan established in chapter 353D or 93.14 excluded under subdivision 2b. A person who is a member remains 93.15 a member while performing services as a public employee and 93.16 while on an authorized leave of absence or an authorized 93.17 temporary layoff. 93.18 Sec. 8. Minnesota Statutes 2000, section 353.01, 93.19 subdivision 11b, is amended to read: 93.20 Subd. 11b. [TERMINATION OF MEMBERSHIP.] (a) "Termination 93.21 of membership" means the conclusion of membership in the 93.22 association and occurs: 93.23 (1) upon termination of public service under subdivision 93.24 11a; 93.25 (2)when a member who is a part-time employee is excluded93.26from membership as a full-time student under subdivision 2b,93.27clause (9);93.28(3)when a member does not return to work within 30 days of 93.29 the expiration of an authorized temporary layoff under 93.30 subdivision 12 or an authorized leave of absence under 93.31 subdivision 31. If the employee subsequently returns to a93.32position in the same governmental subdivision, the employee93.33shall not again be required to earn a salary in excess of $42593.34per month, unless the employee has taken a refund of accumulated93.35employee deductions plus interest under section 353.34,93.36subdivision 1as evidenced by the appropriate record filed by 94.1 the governmental subdivision; or 94.2(4)(3) when a person files a written election to 94.3 discontinue employee deductions under section 353.27, 94.4 subdivision 7, paragraph (a), clause (1). 94.5 (b) The termination of membership must be reported to the 94.6 association by the governmental subdivision. 94.7 Sec. 9. Minnesota Statutes 2000, section 353.01, 94.8 subdivision 12, is amended to read: 94.9 Subd. 12. [AUTHORIZED TEMPORARY LAYOFF.] "Authorized 94.10 temporary layoff,"including seasonal leave of absence,means a 94.11 suspension of public service authorized by the employing 94.12 governmental subdivision for a specified period not exceeding 94.13 three months in any calendar year, as evidenced by appropriate 94.14 record of the employerandpromptly transmitted to the 94.15 association. The association shall credit the member for an 94.16 authorized temporary layoff only as provided in subdivision 16, 94.17 paragraph (a), clause (4). 94.18 Sec. 10. Minnesota Statutes 2000, section 353.01, 94.19 subdivision 12a, is amended to read: 94.20 Subd. 12a. [TEMPORARY POSITION.] (1) "Temporary position" 94.21 means an employment position predetermined by the employer at 94.22 the time of hiring to be a period of six months or lessor. 94.23 Temporary position also means an employment position occupied by 94.24 a person hired by the employer as a temporary replacement who is 94.25 employed for a predetermined period of six months or less. 94.26 (2) "Temporary position" does not mean an employment 94.27 position foran unlimited perioda specified term in which a 94.28 person serves a probationary periodor works an irregular94.29scheduleas a requirement for subsequent employment on a 94.30 permanent or unlimited basis. 94.31 Sec. 11. Minnesota Statutes 2000, section 353.01, is 94.32 amended by adding a subdivision to read: 94.33 Subd. 12b. [SEASONAL POSITION.] "Seasonal position" means 94.34 a position where the nature of the work or its duration are 94.35 related to a specific season or seasons of the year, regardless 94.36 of whether or not the employing agency anticipates that the same 95.1 employee will return to the position each season in which it 95.2 becomes available. The entire period of employment in a 95.3 business year must be used to determine whether or not a 95.4 position may be excluded as seasonal when there is less than a 95.5 30-day break between one seasonal position and a subsequent 95.6 seasonal position for employment with the same governmental 95.7 employer. Seasonal positions include, but are not limited to, 95.8 coaching athletic activities; employment to plow snow or to 95.9 maintain roads or parks, or to operate skating rinks, ski 95.10 lodges, golf courses, or swimming pools. 95.11 Sec. 12. Minnesota Statutes 2000, section 353.01, 95.12 subdivision 16, is amended to read: 95.13 Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 95.14 "Allowable service" means: 95.15 (1) service during years of actual membership in the course 95.16 of which employee contributions were made, periods covered by 95.17 payments in lieu of salary deductions under section 353.35, and; 95.18 (2) service in years during which the public employee was 95.19 not a member but for which the member later elected, while a 95.20 member, to obtain credit by making payments to the fund as 95.21 permitted by any law then in effect.; 95.22(b) "Allowable service" also means(3) a period of 95.23 authorized leave of absence with pay from which deductions for 95.24 employee contributions are made, deposited, and credited to the 95.25 fund.; 95.26(c) "Allowable service" also means(4) a period of 95.27 authorized personal, parental, or medical leave of absence 95.28 without pay, including a leave of absence covered under the 95.29 federal Family Medical Leave Act, that does not exceed one year, 95.30 and during or for which a member obtained full or fractional 95.31 service credit for each month in the leave period by payments to 95.32 the fund made in place of salary deductions, provided that. The 95.33 paymentsaremust be made in an amount or amounts based on the 95.34 member's average salary on which deductions were paid for the 95.35 last six months of public service, or for that portion of the 95.36 last six months while the member was in public service, to apply 96.1 to the period in either case that immediatelyprecedingprecedes 96.2 the commencement of the leave of absence. If the employee 96.3 elects to pay the employee contributions for the period of 96.4 any authorized personal, parental, or medical leave of absence 96.5 without pay, or for any portion of the leave, the employee shall 96.6 also, as a condition to the exercise of the election, pay to the 96.7 fund an amount equivalent toboththe required employer and the 96.8 additional employer contributions, if any, for the employee. 96.9 The payment must be made within one year from the expiration of 96.10 the leave of absence or within 20 days after termination of 96.11 public service under subdivision 11a. The employer, if by 96.12 appropriate action of its governing body, which is made a part 96.13 of its official records, and which is adopted before the date of 96.14 the first payment of the employee contribution, may certify to 96.15 the association in writing its commitment to pay the employer 96.16 and additional employer contributions from the proceeds of a tax 96.17 levy made under section 353.28. Payments under this paragraph 96.18 must include interest at an annual rate of 8.5 percent 96.19 compounded annually from the date of the termination of the 96.20 leave of absence to the date payment is made. An employee shall 96.21 return to public service andreceiverender a minimum of three 96.22 months of allowable service in order to be eligible to pay 96.23 employee and employer contributions for a subsequent authorized 96.24 leave of absence without pay. Upon payment, the employee must 96.25 be granted allowable service credit for full calendar months or 96.26 fractions of a month during the leave period as described in 96.27 paragraph (d), clauses (1) and (2), based on the salary or the 96.28 compensated hours used in computing the payment amount; 96.29(d) "Allowable service" also means(5) a periodic, 96.30 repetitive leave that is offered to all employees of a 96.31 governmental subdivision. The leave program may not exceed 208 96.32 hours per annual normal work cycle as certified to the 96.33 association by the employer. A participating member obtains 96.34 service credit by making employee contributions in an amount or 96.35 amounts based on the member's average salary that would have 96.36 been paid if the leave had not been taken. The employer shall 97.1 pay the employer and additional employer contributions on behalf 97.2 of the participating member. The employee and the employer are 97.3 responsible to pay interest on their respective shares at the 97.4 rate of 8.5 percent a year, compounded annually, from the end of 97.5 the normal cycle until full payment is made. An employer shall 97.6 also make the employer and additional employer contributions, 97.7 plus 8.5 percent interest, compounded annually, on behalf of an 97.8 employee who makes employee contributions but terminates public 97.9 service. The employee contributions must be made within one 97.10 year after the end of the annual normal working cycle or within 97.11 20 days after termination of public service, whichever is 97.12 sooner. The association shall prescribe the manner and forms to 97.13 be used by a governmental subdivision in administering a 97.14 periodic, repetitive leave. Upon payment, the member must be 97.15 granted allowable service credit for full calendar months or 97.16 fractions of a month during the leave period as described in 97.17 paragraph (d), clauses (1) and (2), based on the salary or the 97.18 compensated hours used in computing the payment amount; 97.19(e) "Allowable service" also means a period during which a97.20member is on an authorized sick leave of absence, without pay,97.21limited to one year. An employee who has received one year of97.22allowable service shall return to public service and receive a97.23minimum of three months of allowable service to receive97.24allowable service for a subsequent authorized sick leave of97.25absence.97.26(f) "Allowable service" also means(6) an authorized 97.27 temporary layoff under subdivision 12,. For temporary layoffs 97.28 that begin before July 1, 2001, allowable service credit is 97.29 limited to three months allowable service per authorized 97.30 temporary layoff in one calendar year.An employee who has97.31received the maximum service allowed for an authorized temporary97.32layoff shall return to public service and receive a minimum of97.33three months of allowable service to receive allowable service97.34for a subsequent authorized temporary layoff.For temporary 97.35 layoffs that begin on or after July 1, 2001, allowable service 97.36 credit for the calendar month in which the member does not 98.1 receive salary due to the layoff must be determined using the 98.2 following formula: 98.3 (i) members who earned one month of allowable service 98.4 credit for each of the nine calendar months of compensated 98.5 employment with the governmental subdivision authorizing the 98.6 layoff that immediately preceded the layoff shall receive one 98.7 month of allowable service credit, limited to three months of 98.8 allowable service credit per year, for each month of the 98.9 temporary layoff; or 98.10 (ii) members who earned less than nine months of allowable 98.11 service credit in the year of compensated employment with the 98.12 governmental subdivision authorizing the layoff that immediately 98.13 preceded the layoff shall receive allowable service credit on a 98.14 fractional basis for each month of the authorized layoff, 98.15 limited to three months of allowable service credit, determined 98.16 by dividing the total number of months of service credit earned 98.17 for the compensated employment by nine and multiplying the 98.18 resulting number by the total number of months in the layoff 98.19 period that are not compensated; or 98.20(g) Notwithstanding any law to the contrary, "allowable98.21service" also means a parental leave. The association shall98.22grant a maximum of two months service credit for a parental98.23leave, within six months after the birth or adoption, upon98.24documentation from the member's governmental subdivision or98.25presentation of a birth certificate or other evidence of birth98.26or adoption to the association.98.27(h) "Allowable service" also means(7) a period during 98.28 which a member is on an authorized leave of absence to enter 98.29 military service in the armed forces of the United States, 98.30 provided that the member returns to public service upon 98.31 discharge from military service under section 192.262 and pays 98.32 into the fund employee contributions based upon the employee's 98.33 salary at the date of return from military service. Payment 98.34 must be made within three times the length of the military leave 98.35 period, or five years of the date of discharge from the military 98.36 service, whichever is less. The amount of these contributions 99.1 must be in accord with the contribution rates and salary 99.2 limitations, if any, in effect during the leave, plus interest 99.3 at an annual rate of 8.5 percent compounded annually from the 99.4 date of return to public service to the date payment is made. 99.5 The matching employer contribution and additional employer 99.6 contribution under section 353.27, subdivisions 3 and 3a, must 99.7 be paid by the governmental subdivision employing the member 99.8 upon return to public service if the member makes the employee 99.9 contributions. The governmental subdivision involved may 99.10 appropriate money for those payments. A member may not receive 99.11 credit for a voluntary extension of military service at the 99.12 instance of the member beyond the initial period of enlistment, 99.13 induction, or call to active duty. Upon payment, the employee 99.14 must be granted allowable service credit for full calendar 99.15 months or fractions of a month during the leave period as 99.16 described in paragraph (d), clauses (1) and (2), based on the 99.17 salary or compensated hours used in computing the payment amount. 99.18(i)(b) For calculating benefits under sections 353.30, 99.19 353.31, 353.32, and 353.33 for state officers and employees 99.20 displaced by the Community Corrections Act, chapter 401, and 99.21 transferred into county service under section 401.04, "allowable 99.22 service" means combined years of allowable service as defined in 99.23paragraphsparagraph (a)to (i), clauses (1) to (6), and section 99.24 352.01, subdivision 11. 99.25(j)(c) For a public employee who has prior service covered 99.26 by a local police or firefighters relief association that has 99.27 consolidated with the public employees retirement association or 99.28 to which section 353.665 applies, and who has elected the type 99.29 of benefit coverage provided by the public employees police and 99.30 fire fund either under section 353A.08 following the 99.31 consolidation or under section 353.665, subdivision 4, 99.32 "applicable service" is a period of service credited by the 99.33 local police or firefighters relief association as of the 99.34 effective date of the consolidation based on law and on bylaw 99.35 provisions governing the relief association on the date of the 99.36 initiation of the consolidation procedure. 100.1 (d) For persons who, after June 30, 2001, either first 100.2 become members or terminated membership under subdivision 11b, 100.3 and again become members, of the public employees retirement 100.4 plan, the public employees police and fire plan under this 100.5 chapter, or the local government correctional employee 100.6 retirement plan under chapter 353E, whichever applies, 100.7 "allowable service" means credit for compensated hours from 100.8 which deductions are made, or for which payments are made in 100.9 lieu of salary deductions as provided under this subdivision, 100.10 and which are deposited and credited in the fund as provided in 100.11 section 353.27, determined as follows: 100.12 (1) one month of allowable service credit for each month 100.13 during which the employee has received salary for 80 or more 100.14 compensated hours; or 100.15 (2) a fraction of one month of allowable service for each 100.16 month for which the employee has received salary for less than 100.17 80 compensated hours equal to the percentage relationship that 100.18 the number of compensated hours bear to 80 hours. 100.19 (e) Elected officials and other public employees who are 100.20 compensated solely on an annual basis shall be granted a full 100.21 year of credit for each year for which compensation is earned. 100.22 (f) Allowable service that is determined and credited on a 100.23 fractional basis must be used only in calculating the amount of 100.24 benefits payable. In determining the length of service required 100.25 for vesting, a member shall be granted a month of service credit 100.26 for each month in which the member received compensation from 100.27 which employee contributions were deducted. For periods of 100.28 part-time service that are duplicated service credit, section 100.29 356.30, subdivision 1, paragraphs (g) and (h), govern. 100.30 (g) No member shall receive more than 12 months of 100.31 allowable service credit in a year for either vesting purposes 100.32 or for benefit calculation purposes. 100.33 Sec. 13. Minnesota Statutes 2000, section 353.01, is 100.34 amended by adding a subdivision to read: 100.35 Subd. 38. [BUSINESS YEAR.] "Business year" means the first 100.36 day of the first full pay period through the last day of the 101.1 last full pay period of the 12-month fiscal year applicable to 101.2 the respective governmental subdivision. 101.3 Sec. 14. Minnesota Statutes 2000, section 353.01, is 101.4 amended by adding a subdivision to read: 101.5 Subd. 39. [COMPENSATED HOURS.] "Compensated hours" means 101.6 the hours during which an employee performs services in one or 101.7 more positions for a single governmental subdivision for which 101.8 the employee receives compensation. The term also includes the 101.9 following: 101.10 (1) paid holiday hours for which the employee is not 101.11 required to work; 101.12 (2) paid used sick leave hours; 101.13 (3) paid used personal leave hours and vacation hours; and 101.14 (4) the paid hours drawn from accrued compensatory time. 101.15 Sec. 15. Minnesota Statutes 2000, section 353.026, is 101.16 amended to read: 101.17 353.026 [COVERAGE FOR CERTAIN MUNICIPALAND SCHOOL DISTRICT101.18 EMPLOYEES.] 101.19 Any person who was employed by the city of Minneapolis,101.20Special School District No. 1,or public corporation as defined 101.21 in section 422A.01, subdivision 9, on or after July 1, 1978 and 101.22 prior to July 1, 1979, and who was excluded from retirement 101.23 coverage by the coordinated program of the Minneapolis municipal 101.24 employees retirement fund pursuant to section 422A.09, 101.25 subdivision 3, shall be entitled to retirement coverage by the 101.26 public employees retirement association unless specifically 101.27 excluded pursuant to section 353.01, subdivision 2b, from and 101.28 after May 19, 1981. 101.29 Sec. 16. Minnesota Statutes 2000, section 353.03, 101.30 subdivision 1, is amended to read: 101.31 Subdivision 1. [MANAGEMENT; COMPOSITION; ELECTION.] (a) 101.32 The management of the public employees retirement fund is vested 101.33 in an 11-member board of trustees consisting of ten members and 101.34 the state auditorwho. The state auditor may designate a deputy 101.35 auditor with expertise in pension matters as the auditor's 101.36 representative on the board. 102.1 (b) The governor shall appoint five trustees to four-year 102.2 terms, one of whom shall be designated to representschool102.3boardstownships and special districts, one to represent cities, 102.4 one to represent counties, one who is a retired annuitant, and 102.5 one who is a public member knowledgeable in pension matters. 102.6 (c) The membership of the association, including recipients 102.7 of retirement annuities and disability and survivor benefits, 102.8 shall elect five trustees, one of whom must be a member of the 102.9 police and fire fund and one of whom must be a former member who 102.10 met the definition of public employee under section 353.01, 102.11 subdivisions 2 and 2a, for at least five years prior to 102.12 terminating membership or a member who receives a disability 102.13 benefit, for terms of four years. Except as provided in this 102.14 subdivision, trustees elected by the membership of the 102.15 association must be public employees and members of the 102.16 association. 102.17 (d) For seven days beginning October 1 of each year 102.18 preceding a year in which an election is held, the association 102.19 shall accept at its office filings in person or by mail of 102.20 candidates for the board of trustees. A candidate shall submit 102.21 at the time of filing a nominating petition signed by 25 or more 102.22 members of the fund. No name may be withdrawn from nomination 102.23 by the nominee after October 15. At the request of a candidate 102.24 for an elected position on the board of trustees, the board 102.25 shall mail a statement of up to 300 words prepared by the 102.26 candidate to all persons eligible to vote in the election of the 102.27 candidate. The board may adopt policies to govern form and 102.28 length of these statements, timing of mailings, and deadlines 102.29 for submitting materials to be mailed. These policies must be 102.30 approved by the secretary of state. The secretary of state 102.31 shall resolve disputes between the board and a candidate 102.32 concerning application of these policies to a particular 102.33 statement. 102.34 (e) A candidate who: 102.35 (1) receives contributions or makes expenditures in excess 102.36 of $100; or 103.1 (2) has given implicit or explicit consent for any other 103.2 person to receive contributions or make expenditures in excess 103.3 of $100 for the purpose of bringing about the candidate's 103.4 election, shall file a report with the campaign finance and 103.5 public disclosure board disclosing the source and amount of all 103.6 contributions to the candidate's campaign. The campaign finance 103.7 and public disclosure board shall prescribe forms governing 103.8 these disclosures. Expenditures and contributions have the 103.9 meaning defined in section 10A.01. These terms do not include 103.10 the mailing made by the association board on behalf of the 103.11 candidate. A candidate shall file a report within 30 days from 103.12 the day that the results of the election are announced. The 103.13 campaign finance and public disclosure board shall maintain 103.14 these reports and make them available for public inspection in 103.15 the same manner as the board maintains and makes available other 103.16 reports filed with it. 103.17 (f) By January 10 of each year in which elections are to be 103.18 held the board shall distribute by mail to the members ballots 103.19 listing the candidates. No member may vote for more than one 103.20 candidate for each board position to be filled. A ballot 103.21 indicating a vote for more than one person for any position is 103.22 void. No special marking may be used on the ballot to indicate 103.23 incumbents. The last day for mailing ballots to the fund is 103.24 January 31. Terms expire on January 31 of the fourth year, and 103.25 positions are vacant until newly elected members are qualified. 103.26 The ballot envelopes must be so designed and the ballots counted 103.27 in a manner that ensures that each vote is secret. The 103.28 secretary of state shall supervise the elections. 103.29 (g) The board of trustees and the executive director shall 103.30 undertake their activities consistent with chapter 356A. 103.31 Sec. 17. Minnesota Statutes 2000, section 353.27, 103.32 subdivision 2, is amended to read: 103.33 Subd. 2. [EMPLOYEE CONTRIBUTION.] (a) The employee 103.34 contribution isanthe following applicable percentage of total 103.35 salary amount(1)for a "basic member"equal to 8.75 percent of103.36total salary;and(2)for a "coordinated member"equal to 4.75104.1percent of total salary.: 104.2 basic program coordinated program 104.3 before January 1, 2002 8.75 4.75 104.4 effective January 1, 2002 9.10 5.10 104.5 effective January 1, 2003 9.45 5.45 104.6 (b) These contributions must be made by deduction from 104.7 salary in the manner provided in subdivision 4. Where any 104.8 portion of a member's salary is paid from other than public 104.9 funds, such member's employee contribution must be based on the 104.10 total salary received from all sources. 104.11 Sec. 18. Minnesota Statutes 2000, section 353.27, 104.12 subdivision 3, is amended to read: 104.13 Subd. 3. [EMPLOYER CONTRIBUTION.] (a) The employer 104.14 contribution isanthe following applicable percentage of total 104.15 salary amountequal to the employee contribution under104.16subdivision 2.: 104.17 basic program coordinated program 104.18 before January 1, 2002 8.75 4.75 104.19 effective January 1, 2002 9.10 5.10 104.20 effective January 1, 2003 9.45 5.45 104.21 (b) This contribution must be made from funds available to 104.22 the employing subdivision by the means and in the manner 104.23 provided in section 353.28. 104.24 Sec. 19. Minnesota Statutes 2000, section 353.27, 104.25 subdivision 4, is amended to read: 104.26 Subd. 4. [EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS; 104.27 MEMBER STATUS.] (a) A representative authorized by the head of 104.28 each department shall deduct employee contributions from the 104.29 salary of each employee who qualifies for membership under this 104.30 chapter and remit payment in a manner prescribed by the 104.31 executive director for the aggregate amount of the employee 104.32 contributions, the employer contributions and the additional 104.33 employer contributions to be received within 14 calendar days. 104.34 The head of each department or the person's designee shall for 104.35 each pay period submit to the association a salary deduction 104.36 report in the format prescribed by the executive director. Data 105.1 to be submitted as part of salary deduction reporting must 105.2 include, but are not limited to: 105.3 (1) the legal names and social security numbers of 105.4 employees who are members; 105.5 (2) the amount of each employee's salary deduction; 105.6 (3) the amount of salary from which each deduction was 105.7 made; 105.8 (4) the beginning and ending dates of the payroll period 105.9 covered and the date of actual payment;and105.10 (5) adjustments or corrections covering past pay periods; 105.11 and 105.12 (6) the number of compensated hours of each employee during 105.13 the payroll period. 105.14 (b) Employers must furnish the data required for enrollment 105.15 for each new employee who qualifies for membership in the format 105.16 prescribed by the executive director. The required enrollment 105.17 data on new employees must be submitted to the association prior 105.18 to or concurrent with the submission of the initial employee 105.19 salary deduction. The employer shall also report to the 105.20 association all member employment status changes, such as leaves 105.21 of absence, terminations, and death, and the effective dates of 105.22 those changes, on an ongoing basis for the payroll cycle in 105.23 which they occur. The employer shall furnish data, forms, and 105.24 reports as may be required by the executive director for proper 105.25 administration of the retirement system. Before implementing 105.26 new or different computerized reporting requirements, the 105.27 executive director shall give appropriate advance notice to 105.28 governmental subdivisions to allow time for system modifications. 105.29 (c) Notwithstanding paragraph (a), the association may 105.30 provide for less frequent reporting and payments for small 105.31 employers. 105.32 Sec. 20. Minnesota Statutes 2000, section 353.27, 105.33 subdivision 10, is amended to read: 105.34 Subd. 10. [EMPLOYER EXCLUSION REPORTS.] The head of a 105.35 department shall annually furnish the executive director with an 105.36 exclusion report listing only those employees in potentially 106.1 PERA-eligible positions who were not reported as members of the 106.2 association and who worked during theschool year for school106.3employees andcalendar yearfor nonschool employees. The 106.4 department head must certify the accuracy and completeness of 106.5 the exclusion report to the association. The executive director 106.6 shall prescribe the manner and forms, including standardized 106.7 exclusion codes, to be used by a governmental subdivision in 106.8 preparing and filing exclusion reports. The executive director 106.9 shall also check the exclusion report to ascertain whether any 106.10 omissions have been made by a department head in the reporting 106.11 of new public employees for membership. The executive director 106.12 may delegate an association employee under section 353.03, 106.13 subdivision 3a, paragraph (b), clause (5), to conduct a field 106.14 audit to review the payroll records of a governmental 106.15 subdivision. 106.16 Sec. 21. Minnesota Statutes 2000, section 353.27, 106.17 subdivision 11, is amended to read: 106.18 Subd. 11. [EMPLOYERS; REQUIRED TO FURNISH REQUESTED 106.19 INFORMATION.] All governmental subdivisions shall furnish 106.20 promptly such other information relative to the employment 106.21 status of all employees or former employees, including but not 106.22 limited to payroll abstracts pertaining to all past and present 106.23 employees, as may be requested by the association or its 106.24 executive director, including schedules of salaries applicable 106.25 to various categories of employment, and the number of actual or 106.26 estimated compensated hours for employees. In the event payroll 106.27 abstract records have been lost or destroyed, for whatever 106.28 reason or in whatever manner, so that such schedules of salaries 106.29 cannot be furnished therefrom, the employing governmental 106.30 subdivision, in lieu thereof, shall furnish to the association 106.31 an estimate of the earnings of any employee or former employee 106.32 for any period as may be requested by the association or its 106.33 executive director. Should the association receive such 106.34 schedules of estimated earnings, the executive director is 106.35 hereby authorized to use the same as a basis for making whatever 106.36 computations might be necessary for determining obligations of 107.1 the employee and employer to the retirement fund. If estimates 107.2 are not furnished by the employer pursuant to the request of the 107.3 association or its executive director, the association may 107.4 estimate the obligations of the employee and employer to the 107.5 retirement fund based upon such records as are in its 107.6 possession. Where payroll abstracts have been lost or 107.7 destroyed, the governmental agency need not furnish any 107.8 information pertaining to employment prior to July 1, 1963. The 107.9 association shall make no estimate of any obligation of any 107.10 employee, former employee, or employer covering employment prior 107.11 to July 1, 1963. 107.12 Sec. 22. [353.275] [STATE AID FOR PERA-GENERAL.] 107.13 (a) Annually, on July 1, $2,000,000 is appropriated from 107.14 the general fund to the commissioner of finance for transmittal 107.15 to the executive director of the public employees retirement 107.16 association. 107.17 (b) The state aid transmitted under paragraph (a) must be 107.18 deposited in the general employees retirement fund upon receipt 107.19 and must be credited as an asset of the general employees 107.20 retirement plan of the public employees retirement association. 107.21 Sec. 23. Minnesota Statutes 2000, section 353.28, 107.22 subdivision 8, is amended to read: 107.23 Subd. 8. If the taxes authorized to be levied under this 107.24 section cause the total amount of taxes levied to exceed any 107.25 limitation upon the power of a county, city, or town, or school107.26districtto levy taxes, the governmental subdivision concerned,107.27if it is other than a school district,may levy taxes in excess 107.28 of the limitation in such amount as is necessary to meet its 107.29 obligations under this section. The expenditures authorized to 107.30 be made under this chapter by any municipality are not included 107.31 in computing the cost of government as defined in any home rule 107.32 charter of any municipality which employs members covered by the 107.33 retirement fund. 107.34 Sec. 24. Minnesota Statutes 2000, section 353.86, 107.35 subdivision 1, is amended to read: 107.36 Subdivision 1. [PARTICIPATION.] Volunteer ambulance 108.1 service personnel, as defined in section 353.01, subdivision 35, 108.2 who are or become members of and participants in the public 108.3 employees retirement fund or the public employees police and 108.4 fire fund before July 1, 2002, and make contributions to either 108.5 of those funds based on compensation for service other than 108.6 volunteer ambulance service may elect to participate in that 108.7 same fund with respect to compensation received for volunteer 108.8 ambulance service, provided that the volunteer ambulance service 108.9 is not credited to another public or private pension plan 108.10 including the public employees retirement plan established by 108.11 chapter 353D and provided further that the volunteer ambulance 108.12 service is rendered for the same governmental unit for which the 108.13 nonvolunteer ambulance service is rendered. 108.14 Sec. 25. Minnesota Statutes 2000, section 354.05, 108.15 subdivision 2, is amended to read: 108.16 Subd. 2. [TEACHER.] (a) "Teacher" means: 108.17 (1) a person who renders service as a teacher, supervisor, 108.18 principal, superintendent, librarian, nurse, counselor, social 108.19 worker, therapist, or psychologist in the public schools of the 108.20 state located outside of the corporate limits of the cities of 108.21 the first class or in the Minnesota state colleges and 108.22 universities system, or in any charitable, penal, or 108.23 correctional institutions of a governmental subdivision, or who 108.24 is engaged in educational administration in connection with the 108.25 state public school system, including the Minnesota state 108.26 colleges and universities system, but excluding the University 108.27 of Minnesota, whether the position be a public office or an 108.28 employment, not including members or officers of any general 108.29 governing or managing board or body; 108.30 (2) an employee of the teachers retirement association 108.31 unless the employee is covered by the Minnesota state retirement 108.32 system due to prior employment by that system; 108.33 (3) a person who renders teaching service on a part-time 108.34 basis and who also renders other services for a single employing 108.35 unit. A person whose teaching service comprises at least 50 108.36 percent of the combined employment salary is a member of the 109.1 association for all services with the single employing unit. If 109.2 the person's teaching service comprises less than 50 percent of 109.3 the combined employment salary, the executive director must 109.4 determine whether all or none of the combined service is covered 109.5 by the association; or 109.6 (4) an employee of a common, independent, or special school 109.7 district, an instrumentality of a school district, or a 109.8 governmental entity that is comprised wholly of school districts 109.9 who are not included in clause (1) other than a person who was a 109.10 member of the Minneapolis employees retirement fund on March 1, 109.11 2001. 109.12 (b) Teacher does not mean: 109.13 (1) a person who works for a school or institution as an 109.14 independent contractor as defined by the Internal Revenue 109.15 Service; 109.16 (2) a person employed in subsidized on-the-job training, 109.17 work experience or public service employment as an enrollee 109.18 under the federal Comprehensive Employment and Training Act from 109.19 and after March 30, 1978, unless the person has, as of the later 109.20 of March 30, 1978, or the date of employment, sufficient service 109.21 credit in the retirement association to meet the minimum vesting 109.22 requirements for a deferred retirement annuity, or the employer 109.23 agrees in writing on forms prescribed by the executive director 109.24 to make the required employer contributions, including any 109.25 employer additional contributions, on account of that person 109.26 from revenue sources other than funds provided under the federal 109.27 Comprehensive Training and Employment Act, or the person agrees 109.28 in writing on forms prescribed by the executive director to make 109.29 the required employer contribution in addition to the required 109.30 employee contribution; 109.31 (3) a person holding a part-time adult supplementary 109.32 technical college license who renders part-time teaching service 109.33 or a customized trainer as defined by the Minnesota state 109.34 colleges and universities system in a technical college if (i) 109.35 the service is incidental to the regular nonteaching occupation 109.36 of the person; and (ii) the applicable technical college 110.1 stipulates annually in advance that the part-time teaching 110.2 service or customized training service will not exceed 300 hours 110.3 in a fiscal year and retains the stipulation in its records; and 110.4 (iii) the part-time teaching service or customized training 110.5 service actually does not exceed 300 hours in a fiscal year;or110.6 (4) a person exempt from licensure under section 122A.30; 110.7 (5) a person who is employed by special school district No. 110.8 1 and who was a member of the Minneapolis employees retirement 110.9 fund on March 1, 2001; 110.10 (6) pipefitters and associated trades personnel employed by 110.11 independent school district No. 625, St. Paul, with coverage by 110.12 the pipefitters local 455 pension plan under a collective 110.13 bargaining agreement who were either first employed after May 1, 110.14 1997, or, if first employed before May 2, 1997, elected to be 110.15 excluded under Laws 1997, chapter 241, article 2, section 12; or 110.16 (7) electrical workers, plumbers, carpenters, and 110.17 associated trades personnel employed by independent school 110.18 district No. 625, St. Paul, with coverage by the electrical 110.19 workers local 110 pension plan, the united association plumbers 110.20 local 34 pension plan, or the carpenters local 87 pension plan 110.21 under a collective bargaining agreement who were either first 110.22 employed after May 1, 2000, or, if first employed before May 2, 110.23 2000, elected to be excluded under Laws 2000, chapter 461, 110.24 article 7, section 5. 110.25 Sec. 26. [354.411] [TRANSFER OF MEMBERSHIP; TRANSFER OF 110.26 LIABILITIES, ASSETS, AND RELEVANT RECORDS.] 110.27 Subdivision 1. [MEMBERSHIP TRANSFER.] Unless excluded from 110.28 membership under section 354.05, subdivision 2, active members 110.29 of the general employees retirement plan of the public employees 110.30 retirement association on June 30, 2001, who are employees of a 110.31 common school district, an independent school district, a 110.32 special school district, an instrumentality of a school 110.33 district, or a governmental entity comprised wholly of school 110.34 districts are active members of the teachers retirement 110.35 association under this chapter on July 1, 2001, and are not 110.36 active members of the general employees retirement plan of the 111.1 public employees retirement association under chapter 353. 111.2 Subd. 2. [SERVICE CREDIT TRANSFER.] (a) For every person 111.3 transferred under subdivision 1, all past allowable service 111.4 credit in the general employees retirement plan of the public 111.5 employees retirement association under section 353.01, 111.6 subdivision 16, arising from school district or related 111.7 employment is allowable and formula service credit under section 111.8 354.05, subdivisions 13 and 25. 111.9 (b) The executive director of the public employees 111.10 retirement association shall certify the amount of service 111.11 credit transferred under paragraph (a) for each active member 111.12 provided future retirement plan coverage under subdivision 1. 111.13 (c) Following the certification under paragraph (b), 111.14 effective June 30, 2001, the applicable service credit of 111.15 transferred members in the general employees retirement plan of 111.16 the public employees retirement association cancels and is 111.17 forfeited. 111.18 Subd. 3. [LIABILITY TRANSFER.] The liability to provide 111.19 retirement coverage related to the service credit transferred 111.20 under subdivision 2, paragraph (a), becomes the liability of the 111.21 teachers retirement association as of July 1, 2001, and is no 111.22 longer the liability of the general employees retirement plan of 111.23 the public employees retirement association as of June 30, 2001. 111.24 This liability transfer must be reflected in the actuarial 111.25 valuations of the teachers retirement association and the 111.26 general employees retirement plan of the public employees 111.27 retirement association as of July 1, 2001, every July 1, 111.28 thereafter. 111.29 Subd. 4. [ASSET TRANSFER.] The executive director of the 111.30 public employees retirement association shall transfer from the 111.31 general employees retirement plan of the public employees 111.32 retirement association to the executive director of the teachers 111.33 retirement association assets, at market value, equal to 74.89 111.34 percent of the amount of actuarial accrued liabilities 111.35 transferred under subdivision 3. The executive director of the 111.36 teachers retirement association shall deposit the assets 112.1 transferred under this subdivision to the teachers retirement 112.2 fund. The transfer may not include a transfer of any amounts 112.3 payable or amounts receivable. 112.4 Subd. 5. [RECORDS TRANSFER.] The executive director of the 112.5 public employees retirement association shall transfer relevant 112.6 records relating to members transferred to teachers retirement 112.7 association retirement coverage under subdivision 1. 112.8 Subd. 6. [APPLICABILITY OF CLAIMS.] The teachers 112.9 retirement association is the successor in interest for all 112.10 claims related to members transferred under subdivision 1. The 112.11 teachers retirement association may assert any applicable 112.12 defense in any judicial proceeding which the public employees 112.13 retirement association would have otherwise been entitled to 112.14 assert with respect to claims related to members transferred 112.15 under subdivision 1. 112.16 Sec. 27. Minnesota Statutes 2000, section 356.215, 112.17 subdivision 4g, is amended to read: 112.18 Subd. 4g. [AMORTIZATION CONTRIBUTIONS.] (a) In addition to 112.19 the exhibit indicating the level normal cost, the actuarial 112.20 valuation must contain an exhibit indicating the additional 112.21 annual contribution sufficient to amortize the unfunded 112.22 actuarial accrued liability. For funds governed by chapters 3A, 112.23 352, 352B, 352C, 353, 354, 354A, and 490, the additional 112.24 contribution must be calculated on a level percentage of covered 112.25 payroll basis by the established date for full funding in effect 112.26 when the valuation is prepared. For funds governed by chapter 112.27 3A, sections 352.90 through 352.951, chapters 352B, 352C, 112.28 sections 353.63 through 353.68, and chapters 353C, 354A, and 112.29 490, the level percent additional contribution must be 112.30 calculated assuming annual payroll growth of 6.5 percent. For 112.31 funds governed by sections 352.01 through 352.86 and chapter 112.32 354, the level percent additional contribution must be 112.33 calculated assuming an annual payroll growth of five percent. 112.34 For the fund governed by sections 353.01 through 353.46, the 112.35 level percent additional contribution must be calculated 112.36 assuming an annual payroll growth of six percent. For all other 113.1 funds, the additional annual contribution must be calculated on 113.2 a level annual dollar amount basis. 113.3 (b) For any fund other than the Minneapolis employees 113.4 retirement fund and the public employees retirement association 113.5 general plan,after the first actuarial valuation date occurring113.6after June 1, 1989,if there has not been a change in the 113.7 actuarial assumptions used for calculating the actuarial accrued 113.8 liability of the fund, a change in the benefit plan governing 113.9 annuities and benefits payable from the fund, a change in the 113.10 actuarial cost method used in calculating the actuarial accrued 113.11 liability of all or a portion of the fund, or a combination of 113.12 the three, which change or changes by themselves without 113.13 inclusion of any other items of increase or decrease produce a 113.14 net increase in the unfunded actuarial accrued liability of the 113.15 fund, the established date for full fundingfor the first113.16actuarial valuation made after June 1, 1989, and each successive113.17actuarial valuationis the first actuarial valuation date 113.18 occurring after June 1, 2020. 113.19 (c) For any fund or plan other than the Minneapolis 113.20 employees retirement fund and the public employees retirement 113.21 association general plan,after the first actuarial valuation113.22date occurring after June 1, 1989,if there has been a change in 113.23 any or all of the actuarial assumptions used for calculating the 113.24 actuarial accrued liability of the fund, a change in the benefit 113.25 plan governing annuities and benefits payable from the fund, a 113.26 change in the actuarial cost method used in calculating the 113.27 actuarial accrued liability of all or a portion of the fund, or 113.28 a combination of the three, and the change or changes, by 113.29 themselves and without inclusion of any other items of increase 113.30 or decrease, produce a net increase in the unfunded actuarial 113.31 accrued liability in the fund, the established date for full 113.32 funding must be determined using the following procedure: 113.33 (i) the unfunded actuarial accrued liability of the fund 113.34 must be determined in accordance with the plan provisions 113.35 governing annuities and retirement benefits and the actuarial 113.36 assumptions in effect before an applicable change; 114.1 (ii) the level annual dollar contribution or level 114.2 percentage, whichever is applicable, needed to amortize the 114.3 unfunded actuarial accrued liability amount determined under 114.4 item (i) by the established date for full funding in effect 114.5 before the change must be calculated using the interest 114.6 assumption specified in subdivision 4d in effect before the 114.7 change; 114.8 (iii) the unfunded actuarial accrued liability of the fund 114.9 must be determined in accordance with any new plan provisions 114.10 governing annuities and benefits payable from the fund and any 114.11 new actuarial assumptions and the remaining plan provisions 114.12 governing annuities and benefits payable from the fund and 114.13 actuarial assumptions in effect before the change; 114.14 (iv) the level annual dollar contribution or level 114.15 percentage, whichever is applicable, needed to amortize the 114.16 difference between the unfunded actuarial accrued liability 114.17 amount calculated under item (i) and the unfunded actuarial 114.18 accrued liability amount calculated under item (iii) over a 114.19 period of 30 years from the end of the plan year in which the 114.20 applicable change is effective must be calculated using the 114.21 applicable interest assumption specified in subdivision 4d in 114.22 effect after any applicable change; 114.23 (v) the level annual dollar or level percentage 114.24 amortization contribution under item (iv) must be added to the 114.25 level annual dollar amortization contribution or level 114.26 percentage calculated under item (ii); 114.27 (vi) the period in which the unfunded actuarial accrued 114.28 liability amount determined in item (iii) is amortized by the 114.29 total level annual dollar or level percentage amortization 114.30 contribution computed under item (v) must be calculated using 114.31 the interest assumption specified in subdivision 4d in effect 114.32 after any applicable change, rounded to the nearest integral 114.33 number of years, but not to exceed 30 years from the end of the 114.34 plan year in which the determination of the established date for 114.35 full funding using the procedure set forth in this clause is 114.36 made and not to be less than the period of years beginning in 115.1 the plan year in which the determination of the established date 115.2 for full funding using the procedure set forth in this clause is 115.3 made and ending by the date for full funding in effect before 115.4 the change; and 115.5 (vii) the period determined under item (vi) must be added 115.6 to the date as of which the actuarial valuation was prepared and 115.7 the date obtained is the new established date for full funding. 115.8 (d) For the Minneapolis employees retirement fund, the 115.9 established date for full funding is June 30, 2020. 115.10 (e) For the public employees retirement association general 115.11 plan, the established date for full funding is June 30, 2031. 115.12 (f) For the retirement plans for which the annual actuarial 115.13 valuation indicates an excess of valuation assets over the 115.14 actuarial accrued liability, the valuation assets in excess of 115.15 the actuarial accrued liability must be recognized as a 115.16 reduction in the current contribution requirements by an amount 115.17 equal to the amortization of the excess expressed as a level 115.18 percentage of pay over a 30-year period beginning anew with each 115.19 annual actuarial valuation of the plan. 115.20 Sec. 28. [IMPLEMENTATION PLAN; MAJOR STATEWIDE RETIREMENT 115.21 SYSTEM ADMINISTRATIVE SERVICES CONSOLIDATION.] 115.22 (a) Based on the July 15, 2001, report required under Laws 115.23 1999, chapter 222, article 22, section 5, the executive 115.24 directors of the Minnesota state retirement system, the public 115.25 employees retirement association, and the teachers retirement 115.26 association jointly shall prepare a report detailing the 115.27 implementation steps that would be necessary to consolidate the 115.28 administrations of the three systems into a single 115.29 administrative structure if the legislature subsequently 115.30 determines that such a consolidation would be in the best 115.31 interests of the state, its taxpayers, and its public employees. 115.32 (b) The report must include the draft proposed legislation 115.33 that would be required to effect an administrative consolidation 115.34 as well as a detailed schedule and timetable of the completion 115.35 steps for a consolidation. 115.36 (c) The report must be filed by February 15, 2002, with the 116.1 chair of the legislative commission on pensions and retirement, 116.2 the chair of the senate committee on state and local government 116.3 operations, and the chair of the house committee on government 116.4 operations and veterans affairs policy. 116.5 Sec. 29. [IMPLEMENTATION PLAN; AGGREGATION OF TEACHER 116.6 RETIREMENT PLANS.] 116.7 (a) The executive director of the teachers retirement 116.8 association, the secretary of the Duluth teachers retirement 116.9 fund association, the executive director of the Minneapolis 116.10 teachers retirement fund association, and the secretary of the 116.11 St. Paul teachers retirement fund association jointly shall 116.12 prepare a report detailing the steps that would be necessary to 116.13 create a restructured teacher retirement plan if the legislature 116.14 subsequently determines that this restructuring would be in the 116.15 best interests of the state, its taxpayers, and the public 116.16 education community. 116.17 (b) In preparing the report, the pension plan 116.18 administrators must establish and consult with a task force. 116.19 The task force must consist of representatives of the affected 116.20 employing units and representatives of the collective bargaining 116.21 organizations representing members of the affected pension plans. 116.22 (c) The report must include the draft proposed legislation 116.23 that would be required to create a restructured teacher 116.24 retirement plan as well as a detailed schedule and timetable of 116.25 the completion steps for the creation of a restructured teacher 116.26 retirement plan. 116.27 (d) The report must be filed by February 15, 2002, with the 116.28 chair of the legislative commission on pensions and retirement, 116.29 the chair of the senate committee on state and local government 116.30 operations, and the chair of the house committee on government 116.31 operations and veterans affairs policy. 116.32 Sec. 30. [EFFECTIVE DATE.] 116.33 (a) Sections 1, 4 as it relates to the exclusion of school 116.34 district employees, 6, 15, 16, 20, 23, 25, and 26 are effective 116.35 June 30, 2001. 116.36 (b) Sections 2, 3, 4, 5, 7, 8, 9, 10, 11, 13, and 24 are 117.1 effective July 1, 2002. 117.2 (c) Section 27 is effective for actuarial valuations 117.3 prepared after June 1, 2001. 117.4 (d) Sections 12, 14, 17, 18, 19, 21, and 22 are effective 117.5 July 1, 2001. 117.6 (e) Sections 28 and 29 are effective on the day following 117.7 final enactment. 117.8 ARTICLE 15 117.9 CLOSED CHARTER SCHOOL RETIREMENT CONTRIBUTIONS 117.10 Section 1. [STATE PAYMENT OF CERTAIN UNPAID CHARTER SCHOOL 117.11 RETIREMENT CONTRIBUTIONS.] 117.12 Subdivision 1. [UNPAID CONTRIBUTIONS.] (a) The state of 117.13 Minnesota shall make any unpaid employee and employer 117.14 contributions to the applicable retirement association for 117.15 teaching or other service in a designated charter school which 117.16 closed without having paid such contributions to the retirement 117.17 association. 117.18 (b) By June 1 each year, the chief administrative officer 117.19 of the retirement association shall certify to the commissioner 117.20 of finance the amount of accrued contributions, plus applicable 117.21 interest, which were not paid by each designated charter school 117.22 before its closure. On or after July 1 each year, the 117.23 commissioner of finance shall subtract the amounts certified 117.24 from the state total building lease aid otherwise payable under 117.25 Minnesota Statutes, section 124D.11, subdivision 4a. The amount 117.26 subtracted is appropriated from the general fund to the 117.27 commissioner of finance for payment to the affected retirement 117.28 associations. The commissioner of finance shall remit directly 117.29 to the retirement association the amounts certified under this 117.30 section. The applicable retirement association shall credit 117.31 employee contribution payments to the applicable member accounts 117.32 and shall credit to applicable members allowable and formula 117.33 service and covered salary for the period when the teaching or 117.34 other service was actually performed in the charter school. 117.35 State payments representing unpaid employee contributions must 117.36 be considered accumulated employee or member deductions for 118.1 purposes of Minnesota Statutes, section 353.34; 354.49; or 118.2 354A.37. 118.3 Subd. 2. [COVERED RETIREMENT ASSOCIATIONS.] This section 118.4 applies to the following public retirement associations 118.5 providing retirement coverage for employees in charter schools: 118.6 (1) teachers retirement association; 118.7 (2) Minneapolis teachers retirement fund association; 118.8 (3) St. Paul teachers retirement fund association; 118.9 (4) Duluth teachers retirement fund association; and 118.10 (5) public employees retirement association. 118.11 Subd. 3. [DESIGNATED CLOSED CHARTER SCHOOLS.] This section 118.12 applies to the Frederick Douglass charter school and any other 118.13 charter school that has closed and that is approved by the 118.14 legislative commission on pensions and retirement for coverage 118.15 by this section. 118.16 Sec. 2. [CONTINUING RECOVERY AUTHORITY.] 118.17 Nothing in section 1 relieves the sponsor of a closed 118.18 charter school or the operator of a closed charter school from 118.19 any financial responsibility that those parties may have to pay 118.20 unpaid employee or employer contributions to applicable public 118.21 retirement plans. The commissioner of finance shall undertake 118.22 all reasonable efforts to recover these amounts. Any recovered 118.23 amounts must be deposited in the general fund. 118.24 Sec. 3. [EFFECTIVE DATE.] 118.25 Sections 1 and 2 are effective the day following final 118.26 enactment. 118.27 ARTICLE 16 118.28 MINNEAPOLIS FIREFIGHTERS RELIEF ASSOCIATION 118.29 BENEFIT PLAN CODIFICATION AND REVISION 118.30 Section 1. [423C.01] [MINNEAPOLIS FIREFIGHTERS RELIEF 118.31 ASSOCIATION; DEFINITIONS.] 118.32 Subdivision 1. [TERMS.] For purposes of this chapter, 118.33 unless the context clearly indicates otherwise, the terms 118.34 defined in this section have the meanings given them. 118.35 Subd. 2. [ACTIVE MEMBER.] "Active member" means a person 118.36 who was hired and duly appointed by the city of Minneapolis 119.1 before June 15, 1980, as a firefighter who is regularly entered 119.2 on the fire department payroll and who serves on active duty. 119.3 Subd. 3. [ACTIVE MEMBER PERCENTAGE.] "Active member 119.4 percentage" means the total number of units accrued by active 119.5 members divided by the sum of the total number of units to which 119.6 eligible members are entitled and active members have accrued. 119.7 Subd. 4. [ACTUARIAL EQUIVALENT OR ACTUARIALLY 119.8 EQUIVALENT.] "Actuarial equivalent" or "actuarially equivalent" 119.9 means the condition of one annuity or benefit having an equal 119.10 actuarial present value as another annuity or benefit determined 119.11 as of a given date at a specified age with each actuarial 119.12 present value based on the appropriate mortality table adopted 119.13 by the board based on the experience of the special fund and 119.14 approved by the actuary retained by the legislative commission 119.15 on pensions and retirement and using the applicable 119.16 preretirement or postretirement interest rate assumptions 119.17 specified in section 356.216. 119.18 Subd. 5. [AGE.] "Age" means a person's age at the person's 119.19 latest birthday. 119.20 Subd. 6. [ANNUAL POSTRETIREMENT ADJUSTMENT.] "Annual 119.21 postretirement adjustment" means the payment of a lump-sum, 119.22 postretirement benefit pursuant to section 423C.06, subdivision 119.23 1, to an eligible member on June 1 following the determination 119.24 date in any year. 119.25 Subd. 7. [ASSOCIATION.] "Association" means the 119.26 Minneapolis firefighters relief association. 119.27 Subd. 8. [BOARD.] "Board" means the board established in 119.28 section 423C.03 to govern the association. 119.29 Subd. 9. [CITY.] "City" means the city of Minneapolis. 119.30 Subd. 10. [DEFERRED MEMBER.] "Deferred member" means a 119.31 person who served on active duty and was regularly entered on 119.32 the fire department payroll and separated from active service 119.33 prior to attaining 50 years of age and is entitled to receive a 119.34 service pension upon reaching age 50 under the law existing at 119.35 the time the member separated from active service for at least 119.36 five years. 120.1 Subd. 11. [DEPENDENT.] "Dependent" means: 120.2 (1) a biological or adopted child of a deceased, active, or 120.3 retired member who is unmarried and under the age of 18; 120.4 (2) a biological or adopted child of a deceased, active, or 120.5 retired member who is between the ages of 18 and 22 and is 120.6 enrolled full time at an accredited educational institution 120.7 approved by the board; or 120.8 (3) a biological child of an active or retired member 120.9 conceived during the active or retired member's lifetime and 120.10 born after the active or retired member's death. 120.11 Subd. 12. [DETERMINATION DATE.] "Determination date" means 120.12 December 31 of each year. 120.13 Subd. 13. [DISABILITY.] "Disability" has the meaning 120.14 specified in the bylaws of the relief association on April 1, 120.15 2001. 120.16 Subd. 14. [DISCHARGE.] "Discharge" means a complete 120.17 separation from and termination of active service as a member of 120.18 the fire department. 120.19 Subd. 15. [ELIGIBLE MEMBER.] "Eligible member" means: 120.20 (1) for purposes of section 423C.06, subdivision 1, a 120.21 person, including a service pensioner, a disability pensioner, a 120.22 survivor, or dependent of a deceased active member, service 120.23 pensioner, or disability pensioner, who received a pension or 120.24 benefit from the relief association during the 12 months before 120.25 the determination date. A person who received a pension or 120.26 benefit for the entire 12 months before the determination date 120.27 is eligible for a full annual postretirement payment. A person 120.28 who received a pension or benefit for less than 12 months before 120.29 the determination date is eligible for a prorated annual 120.30 postretirement payment; and 120.31 (2) for purposes of section 423C.06, subdivision 4, a 120.32 person who receives a service, survivor, or disability pension 120.33 payable from the special fund of the association. 120.34 Subd. 16. [ENROLLED FULL TIME.] "Enrolled full time" means 120.35 the situation of an individual who is in full-time attendance as 120.36 a student at an educational institution, as determined by the 121.1 board of trustees of the relief association in light of the 121.2 standards and practices of the school involved. A person who is 121.3 paid by the person's employer while attending school at the 121.4 request of that employer may not be considered to be a full-time 121.5 student. A person may be considered a full-time student during 121.6 a period of up to four months of nonattendance during any 12 121.7 month period if the person shows to the satisfaction of the 121.8 board of trustees that the person intends to continue in 121.9 full-time school attendance immediately upon the conclusion of 121.10 the nonattendance period. 121.11 Subd. 17. [EXCESS INVESTMENT INCOME.] "Excess investment 121.12 income" means the amount, if any, by which the time-weighted 121.13 total rate of return earned by the special fund in the prior 121.14 five fiscal years has exceeded the actual percentage increase in 121.15 the current monthly salary of a first grade firefighter in the 121.16 most recent fiscal year plus two percent. The excess investment 121.17 income must be expressed as a dollar amount and may not exceed 121.18 one percent of the total assets of the special fund except when 121.19 the actuarial value of assets of the special fund, according to 121.20 the most recent annual actuarial valuation prepared in 121.21 accordance with sections 356.215 and 356.216, is greater than 121.22 102 percent of its actuarial accrued liabilities, in which case 121.23 the amount must not exceed 1.5 percent of the assets of the 121.24 special fund. 121.25 Subd. 18. [FIRE DEPARTMENT.] "Fire department" means the 121.26 Minneapolis fire department. 121.27 Subd. 19. [FUND.] "Fund" means the special fund of the 121.28 relief association. 121.29 Subd. 20. [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess 121.30 asset amount payment" means the payment of an additional 121.31 postretirement payment under section 423C.06, subdivision 4, to 121.32 an eligible member on June 1 following the determination date in 121.33 the given year. 121.34 Subd. 21. [NET TOTAL EXCESS ASSET AMOUNT.] "Net total 121.35 excess asset amount" means the total excess asset amount stated 121.36 in dollars and multiplied by one minus the active member 122.1 percentage. 122.2 Subd. 22. [PERIOD OF SERVICE.] "Period of service" means: 122.3 (1) any service rendered by a firefighter for any calendar 122.4 month when the member receives salary from which deductions are 122.5 made, deposited, and credited to the special fund. Leaves of 122.6 absence of more than 90 days, except those granted because of 122.7 disability due to sickness or accident or to enable a member to 122.8 accept an appointive position in the fire department, shall be 122.9 excluded in computing a member's period of service; 122.10 (2) any period in which the member, after entering the fire 122.11 department, leaves to either enter the military forces of the 122.12 United States in a time of war or national emergency and 122.13 subsequently receives an honorable discharge from the military 122.14 or renders fire prevention services to the United States 122.15 government in a time of war or national emergency, provided the 122.16 member who serves either applies for reinstatement in or resumes 122.17 active duty in the fire department within six months. During 122.18 any period of military or fire prevention service, the 122.19 individual shall not be considered an active member. Any period 122.20 of service a member qualifies for under this clause is limited 122.21 as follows: 122.22 (i) credit shall be granted for service rendered subsequent 122.23 to July 1, 1961, but the credit shall not exceed six calendar 122.24 years; 122.25 (ii) no credit shall be granted for service rendered 122.26 subsequent to July 1, 1961, if the period of service rendered 122.27 prior to July 1, 1961, equals or exceeds six calendar years; and 122.28 (iii) if the period of service prior to July 1, 1961, is 122.29 less than six calendar years, credit for service subsequent to 122.30 July 1, 1961, shall be added to the prior service, but in no 122.31 case shall total service credit exceed six calendar years. 122.32 Subd. 23. [RETIRED MEMBER.] "Retired member" means a 122.33 former active member who has terminated active service with the 122.34 fire department and is entitled to receive a pension or benefit 122.35 under this chapter or any predecessor law. 122.36 Subd. 24. [RELIEF ASSOCIATION.] "Relief association" means 123.1 the Minneapolis firefighters relief association. 123.2 Subd. 25. [SURVIVING SPOUSE MEMBER.] "Surviving spouse 123.3 member" means a person who was: 123.4 (1) legally married to, and residing with, an active, 123.5 deferred, or retired member both during the time the member was 123.6 regularly entered on the payroll and serving on active duty in 123.7 the fire department and at the time of the member's death; 123.8 (2) not in a common law marriage; and 123.9 (3) in the event the person was married to a retired or 123.10 deferred member, the person was married to that retired or 123.11 deferred member for at least two years prior to the member's 123.12 discharge from the fire department. 123.13 Subd. 26. [TIME-WEIGHTED TOTAL RATE OF 123.14 RETURN.] "Time-weighted total rate of return" means the 123.15 percentage amount determined by using the formula or formulas 123.16 established by the state board of investment under section 123.17 11A.04, clause (11), and in effect on January 1, 1987. 123.18 Subd. 27. [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess 123.19 asset amount" means the difference, if positive, expressed in 123.20 dollars, between the special fund's market value of assets after 123.21 any deductions required by section 423C.06, subdivision 3, and 123.22 110 percent of the actuarial accrued liabilities based on the 123.23 actuarial valuation indicated in paragraph (b). 123.24 (b) The total excess asset amount in paragraph (a) exists 123.25 if the actuarial liability funding ratio, according to the most 123.26 recent annual actuarial valuation of the special fund prepared 123.27 in accordance with sections 69.77, 356.215, and 356.216, with 123.28 adjustments required by section 423C.06, subdivision 3, equals 123.29 or exceeds 110 percent. 123.30 Subd. 28. [UNIT.] "Unit" means 1/80 of the maximum monthly 123.31 salary of a first grade firefighter on the first day of the 123.32 month in which the pension benefits provided by this chapter are 123.33 paid. 123.34 Sec. 2. [423C.02] [MINNEAPOLIS FIREFIGHTERS RELIEF 123.35 ASSOCIATION.] 123.36 Subdivision 1. [CREATION.] The active and retired members 124.1 of the fire department and their surviving spouses shall 124.2 maintain the association. The association shall be duly 124.3 incorporated under chapter 317A. The corporation shall have 124.4 perpetual corporate existence. The association shall create, 124.5 maintain, and administer those funds and accounts as set forth 124.6 in section 423C.04 for the benefit of its members, surviving 124.7 spouses, and dependents. The sources of revenue for each fund 124.8 and account are governed by section 423C.04. The authorized 124.9 disbursements from each fund and account are governed by 124.10 sections 423C.04, 423C.05, and 423C.06. 124.11 Subd. 2. [MEMBERSHIP.] Active members, deferred members, 124.12 retired members, and surviving spouse members as defined in 124.13 section 423C.01 are members of the association. 124.14 Subd. 3. [MANAGEMENT OF ASSOCIATION.] The board created in 124.15 section 423C.03 shall manage, control, and operate the 124.16 association, including the funds and accounts set forth in 124.17 section 423C.04, according to this chapter, other applicable 124.18 law, and the association's articles of incorporation and its 124.19 bylaws. Notwithstanding section 423A.01, subdivision 2, or any 124.20 other law to the contrary, the board shall continue to govern 124.21 the association until there are fewer than 100 members receiving 124.22 benefits under this chapter. Thereafter, the special fund shall 124.23 become a trust fund according to section 423A.01, subdivision 2. 124.24 Subd. 4. [DISPOSITION OF ASSETS UPON CONCLUSION OF BENEFIT 124.25 PAYMENTS.] Upon the death of the last benefit recipient and the 124.26 certification by the chief administrative officer of the city to 124.27 the state auditor of the absence of any remaining person 124.28 entitled to a benefit under this chapter, all assets of the 124.29 association or trust fund, whichever applies, shall revert to 124.30 the city. The city shall only use these assets for firefighting 124.31 expenditure purposes. 124.32 Sec. 3. [423C.03] [BOARD MEMBERSHIP; ELECTIONS; DUTIES; 124.33 COMPENSATION; BOND; MEETINGS; POWERS.] 124.34 Subdivision 1. [BOARD COMPOSITION AND ELECTIONS.] The 124.35 board shall consist of two persons appointed by the city and ten 124.36 other members selected by the members. Elections for active and 125.1 retired positions on the board shall be conducted pursuant to 125.2 the association's bylaws. 125.3 Subd. 2. [BOARD OFFICERS.] The officers of the association 125.4 shall consist of a president, one or more vice-presidents, an 125.5 executive secretary, a treasurer, an assistant executive 125.6 secretary, and an assistant treasurer. Only elected members of 125.7 the board are eligible to be officers. Officers shall have 125.8 those duties and responsibilities as set forth in this chapter, 125.9 other applicable law, and the association's bylaws. Officers 125.10 shall be compensated as provided in subdivision 3. All officers 125.11 shall be elected in even years at the association's annual 125.12 meeting. Officers shall hold their office for a term of two 125.13 years unless they are removed from the board before their 125.14 two-year term expires. 125.15 Subd. 3. [COMPENSATION OF OFFICERS AND BOARD 125.16 MEMBERS.] Notwithstanding any other law to the contrary, the 125.17 association may provide for payment of the following salaries to 125.18 its officers and board members: 125.19 (1) the executive secretary may receive a salary not 125.20 exceeding 30 percent of the maximum salary of a first grade 125.21 firefighter; 125.22 (2) the president may receive a salary not exceeding ten 125.23 percent of the maximum salary of a first grade firefighter; and 125.24 (3) all other elected members of the board may receive a 125.25 salary not exceeding 2.5 percent of the maximum salary of a 125.26 first grade firefighter. 125.27 Subd. 4. [BOND FOR EXECUTIVE SECRETARY AND TREASURER.] (a) 125.28 The executive secretary and the treasurer must furnish to the 125.29 relief association a corporate bond for the faithful performance 125.30 of the duties of that office in an amount as the board of 125.31 trustees from time to time may determine, subject to the minimum 125.32 amount specified in section 69.051, subdivision 2. 125.33 (b) The relief association must pay the premiums on these 125.34 bonds from the general fund of the relief association. 125.35 Subd. 5. [MEETINGS.] Each December, the board shall hold 125.36 an annual meeting. All other meetings of the board shall be 126.1 held as provided in the association's articles or bylaws. Board 126.2 members may participate in a board meeting by any means of 126.3 communication through which the trustee, other board members 126.4 participating, and all other board members physically present at 126.5 the meeting may simultaneously hear each other during the 126.6 meeting. Participating in a meeting by these means is the same 126.7 thing as being physically present at the meeting. 126.8 Subd. 6. [ADDITIONAL BOARD POWERS.] In addition to the 126.9 powers granted the board by this chapter, chapter 317A, other 126.10 applicable state and federal law, and its articles and bylaws, 126.11 the board shall authorize and create a board of examiners. 126.12 The board of examiners shall investigate and make a report 126.13 on all applications for disability pensions and make 126.14 recommendations as to the amount to be paid to each applicant; 126.15 investigate and make report on all disability pensioners, and 126.16 make recommendations as to the amount of pension to be paid to 126.17 them, from year to year; and investigate and report on all 126.18 applications for service pensions, and claims for relief. This 126.19 board shall consist of a competent physician selected by the 126.20 association, and at least three members of the relief 126.21 association on active duty with the fire department. 126.22 Sec. 4. [423C.04] [ASSOCIATION FUNDS AND ACCOUNTS.] 126.23 Subdivision 1. [DUTIES.] The association shall create, 126.24 maintain, and administer the funds and accounts in this 126.25 section. The sources of revenue and authorized disbursements of 126.26 each fund and account are governed by this section. 126.27 Subd. 2. [SPECIAL FUND; PURPOSE AND SOURCES OF 126.28 REVENUE.] (a) The special fund may only be used to pay for 126.29 defined and contingent benefits as set forth in sections 423C.05 126.30 and 423C.06; compensation for officers and board members as set 126.31 forth in section 423C.03, subdivision 3; and expenses of 126.32 officers and employees of the association in connection with the 126.33 protection of the special fund, and expenses of operating, 126.34 administering, and maintaining the association as authorized by 126.35 this chapter, section 69.80, or other applicable law. 126.36 (b) The special fund is derived from the following sources: 127.1 (1) receipts from the state, including, but not limited to, 127.2 any fire state aid, any fire insurance premium surcharge amount, 127.3 or any additional amortization state aid; 127.4 (2) all money derived from taxation by the city under 127.5 section 69.77 for the support of the association and for the 127.6 payment of benefits set forth in sections 423C.05 and 423C.06; 127.7 (3) an amount equal to the minimum percentage specified in 127.8 section 69.77, subdivision 2a, of the salary of a first grade 127.9 firefighter deducted from the monthly salary of each active 127.10 member; and 127.11 (4) the proceeds of the investment of special fund assets. 127.12 Subd. 3. [GENERAL FUND.] The general fund is separate and 127.13 distinct from the special fund. The general fund may, 127.14 consistent with applicable law, be expended for those purposes 127.15 deemed appropriate by the relief association. The city finance 127.16 officer shall deduct from each active member's biweekly payroll 127.17 check a sum equal to one-half of one percent of the maximum 127.18 biweekly salary of a first grade firefighter. This sum shall be 127.19 forwarded to the association's treasurer and deposited in the 127.20 general fund. The general fund shall also consist of receipts 127.21 from private sources, such as gifts, charges, fundraising 127.22 projects, and dues paid by members; investment of, earnings on, 127.23 and interest of the general fund; and all other sources. Money 127.24 received from other sources may also be deposited in the general 127.25 fund. 127.26 Subd. 4. [HEALTH INSURANCE ACCOUNTS.] Notwithstanding any 127.27 law to the contrary, contributions of active members of the 127.28 association with at least 25 years of service made after the 127.29 25th year of service must be deposited in a separate account and 127.30 used to pay health care costs of the individual member upon 127.31 retirement. The board shall adopt rules regarding the frequency 127.32 and amounts of distributions from these accounts. A member with 127.33 an account established pursuant to this section is entitled, 127.34 upon retirement or disability, to receive periodic distributions 127.35 from the account, in the amount and with the frequency specified 127.36 by the retiring member consistent with the board's rules. 128.1 Sec. 5. [423C.05] [DEFINED BENEFITS.] 128.2 Subdivision 1. [DUTIES.] The association is authorized to 128.3 and shall pay the benefits in this section to its members in 128.4 accordance with this section. All benefits authorized in this 128.5 section shall be paid from the association's special fund. 128.6 Subd. 2. [SERVICE PENSION.] (a) An active member who has 128.7 performed duty for the fire department for five years or more, 128.8 upon written application after retiring from duty and reaching 128.9 at least age 50, is entitled to be paid monthly for life a 128.10 service pension under paragraph (b). 128.11 (b) Based on the percentage that the actuarial value of 128.12 assets of the special fund equal to the actuarial accrued 128.13 liabilities of the special fund according to the most recent 128.14 annual actuarial valuation of the relief association prepared in 128.15 accordance with sections 356.215 and 356.216, the amount of the 128.16 service pension is as follows: 128.17 service 128.18 pension 128.19 payable service 128.20 service if greater pension 128.21 length of pension than 89.99 payable if 128.22 allowable payable if percent and greater 128.23 service under 90 less than than 92.49 128.24 credit percent 92.5 percent percent 128.25 5 years - 8.0 units 8.0 units 128.26 6 years - 9.6 units 9.6 units 128.27 7 years - 11.2 units 11.2 units 128.28 8 years - 12.8 units 12.8 units 128.29 9 years - 14.4 units 14.4 units 128.30 10 years 16.0 units 16.0 units 16.0 units 128.31 11 years 17.6 units 17.6 units 17.6 units 128.32 12 years 19.2 units 19.2 units 19.2 units 128.33 13 years 20.8 units 20.8 units 20.8 units 128.34 14 years 22.4 units 22.4 units 22.4 units 128.35 15 years 24.0 units 24.0 units 24.0 units 128.36 16 years 25.6 units 25.6 units 25.6 units 129.1 17 years 27.2 units 27.2 units 27.2 units 129.2 18 years 28.8 units 28.8 units 28.8 units 129.3 19 years 30.4 units 30.4 units 30.4 units 129.4 20 years 33.0 units 33.5 units 34.0 units 129.5 21 years 34.6 units 35.1 units 35.6 units 129.6 22 years 36.2 units 37.7 units 37.2 units 129.7 23 years 37.8 units 38.3 units 38.8 units 129.8 24 years 39.4 units 39.9 units 40.4 units 129.9 25 years or 129.10 more 41.0 units 41.5 units 42.0 units 129.11 (c) A member entitled to a benefit under this subdivision 129.12 may elect to have it paid as an optional retirement annuity 129.13 pursuant to the conditions set forth in subdivision 8. A member 129.14 receiving a benefit pursuant to subdivision 5 or 6 shall not 129.15 simultaneously be entitled to a benefit under this subdivision. 129.16 Subd. 3. [CALCULATION OF SERVICE PENSION FOR DEFERRED 129.17 MEMBERS.] An association member who has performed services for 129.18 the fire department for five years or more but has not reached 129.19 the age of 50 years shall be eligible to retire from the 129.20 department, without forfeiting service pension rights. The 129.21 member shall, upon application, be placed on the association's 129.22 deferred pension roll. The association shall, upon board 129.23 approval, pay the pension of any member on the deferred pension 129.24 roll who has attained 50 years of age from the date the 129.25 application is approved. The pension shall be paid in 129.26 accordance with the schedule in subdivision 2. Any person 129.27 making this application waives all other rights, claims, or 129.28 demands against the association for any cause that may have 129.29 arisen from or that may be attributable to the person's service 129.30 in the fire department. A member entitled to a benefit under 129.31 this subdivision may elect to have the benefit paid as an 129.32 optional retirement annuity pursuant to the conditions set forth 129.33 in subdivision 7. 129.34 Subd. 4. [TEMPORARY DISABILITY PENSION.] An active member 129.35 who, by sickness or accident, becomes temporarily disabled from 129.36 performing firefighter duties for the fire department shall be 130.1 entitled to a temporary disability pension. No allowance for 130.2 disability shall be made unless notice of the disability and an 130.3 application for benefits is made by or on behalf of the disabled 130.4 member within 90 days after the beginning of the disability. 130.5 This application shall include a certificate from a qualified 130.6 medical professional setting forth the cause, nature, and extent 130.7 of the disability. This certificate must also conclude that the 130.8 disability was incurred or sustained while the member was in the 130.9 service of the fire department. The board shall utilize the 130.10 board of examiners established pursuant to section 423C.03, 130.11 subdivision 6, to investigate and report on an application for 130.12 benefits pursuant to this section and make recommendations as to 130.13 eligibility and the benefit amount to be paid. A member 130.14 entitled to a disability pension shall receive benefits in the 130.15 amount and manner determined by the board. 130.16 Subd. 5. [SERVICE-RELATED PERMANENT DISABILITY 130.17 PENSION.] An active member who becomes permanently disabled as 130.18 the result of a service-related disease or injury shall, upon 130.19 application and approval of the board, be entitled to a pension 130.20 of 42 units or in the amount determined under subdivision 8. 130.21 The application for service-related permanent disability shall 130.22 include a certificate from a qualified medical professional 130.23 setting forth the permanent nature of the disability or disease 130.24 and that it was service related. The board shall utilize the 130.25 board of examiners established pursuant to section 423C.03, 130.26 subdivision 6, to investigate and make recommendations on an 130.27 application for a pension pursuant to this subdivision. 130.28 Subd. 6. [NON-SERVICE-RELATED PERMANENT DISABILITY 130.29 PENSION.] An active member who, by sickness or accident, becomes 130.30 permanently disabled from performing firefighter duties for the 130.31 fire department shall be entitled to a permanent disability 130.32 pension. No allowance for disability shall be made unless 130.33 notice of the disability and an application for benefits is made 130.34 by or on behalf of the disabled member within 90 days after the 130.35 beginning of the disability. This application shall include a 130.36 certificate from a qualified medical professional setting forth 131.1 the cause, nature, and extent of the disability. The board 131.2 shall utilize the board of examiners established pursuant to 131.3 section 423C.03, subdivision 6, to investigate and report on an 131.4 application for benefits pursuant to this section and make 131.5 recommendations as to eligibility and the benefit amount to be 131.6 paid. A member entitled to a disability pension shall receive 131.7 benefits in the amount and manner determined by the board, not 131.8 to exceed 41 units. 131.9 Subd. 7. [SURVIVING SPOUSE AND DEPENDENT 131.10 PENSIONS.] Notwithstanding any other law to the contrary, when a 131.11 service pensioner, disability pensioner, deferred pensioner, or 131.12 active member of the association dies, recipient beneficiaries 131.13 are entitled to a pension or pensions, as follows: 131.14 (1) to a surviving spouse, a pension of 22 units per month; 131.15 (2) to a surviving spouse of a deceased service pensioner, 131.16 disability pensioner, or deferred pensioner who is otherwise not 131.17 qualified for a pension may receive a benefit if the surviving 131.18 spouse was legally married to the decedent for a period of two 131.19 years and was residing with the decedent at the time of death. 131.20 The surviving spouse benefit provided in this clause is the same 131.21 as that provided to those who meet the definition of surviving 131.22 spouse under section 423C.01, subdivision 25, except that if the 131.23 surviving spouse is younger than the decedent, the surviving 131.24 spouse benefit must be actuarially equivalent to a surviving 131.25 spouse benefit that would have been paid to the member's spouse 131.26 had the member been married to a person of the same or greater 131.27 age than the member's age prior to retirement. A benefit paid 131.28 in this circumstance may be less than 17 units notwithstanding 131.29 the minimum set out in this clause; 131.30 (3) to each dependent, if the dependent's other parent is 131.31 living, a pension not to exceed eight units per month. 131.32 Dependents between the ages of 18 and 22 may continue to receive 131.33 a pension upon board determination that the dependent complies 131.34 with the requirements of section 423C.01, subdivision 11, and 131.35 applicable association bylaws, except that if the dependent 131.36 marries before the age of 22 years the pension shall cease as of 132.1 the date of the marriage. The board shall make the final 132.2 determination with respect to eligibility for benefits and 132.3 compliance with section 423C.01, subdivision 11; 132.4 (4) to each dependent of a deceased member after the death 132.5 of the dependent's other parent, or in the event the other 132.6 parent predeceases the member, is entitled to receive a pension 132.7 in the amount the board deems necessary to properly support each 132.8 dependent until the dependent reaches the age of not less than 132.9 16 and not more than 18 years. Dependents between the ages of 132.10 18 and 22 may be entitled to continue receiving a pension upon 132.11 board determination that the dependent complies with the 132.12 requirements of section 423C.01, subdivision 11, and applicable 132.13 association bylaws, except that if the dependent marries before 132.14 the age of 22 years the pension shall cease as of the date of 132.15 the marriage. The board shall make the final determination with 132.16 respect to eligibility for benefits and compliance; and 132.17 (5) the total pension payable to a surviving spouse and all 132.18 dependents of a deceased member shall in no event exceed 41 132.19 units per month. 132.20 Subd. 8. [OPTIONAL RETIREMENT ANNUITY ELECTION.] A member 132.21 of the association who retires under subdivision 2 or becomes 132.22 disabled under subdivision 6 may elect an optional retirement 132.23 annuity prior to the receipt of any benefits. The optional 132.24 retirement annuity may be a 50 percent, 75 percent, or 100 132.25 percent joint survivor annuity without reinstatement in the 132.26 event the designated beneficiary predeceases the member or a 132.27 joint and survivor annuity with reinstatement in the event the 132.28 member predeceases the designated beneficiary. An optional 132.29 retirement annuity must be actuarially equivalent to the service 132.30 pension and automatic survivor coverage otherwise payable to the 132.31 retired member and the member's beneficiaries. Once selected, 132.32 the optional annuity is irrevocable. 132.33 Subd. 9. [ALTERNATIVE SERVICE PENSION FOR UNMARRIED 132.34 MEMBER.] A retired member who is not legally married on 132.35 September 1, 1997, and remains unmarried on the effective date 132.36 of this article may select a service pension of 42.3 units in 133.1 lieu of a service pension under subdivision 2. 133.2 Sec. 6. [423C.06] [INVESTMENT-RELATED POSTRETIREMENT 133.3 ADJUSTMENTS.] 133.4 Subdivision 1. [ANNUAL ADJUSTMENTS.] Notwithstanding the 133.5 provisions of chapter 69, or any other law to the contrary, the 133.6 association may provide annual postretirement payments to 133.7 eligible members under this section. No provision of or payment 133.8 made under this section may be interpreted or relied upon by any 133.9 member of the association to guarantee or entitle a member to 133.10 annual postretirement adjustments for any period when the 133.11 requirements in this section have not been met. 133.12 Subd. 2. [ACTUARIAL ASSETS OF SPECIAL FUND LESS THAN 102 133.13 PERCENT.] When the actuarial assets of the special fund in any 133.14 year are less than 102 percent of its accrued liabilities 133.15 according to the most recent annual actuarial valuation of the 133.16 special fund prepared in accordance with sections 356.215 and 133.17 356.216, investment-related postretirement adjustments shall be 133.18 determined and paid pursuant to this subdivision. Payment of 133.19 the annual postretirement adjustment may be made only if there 133.20 is excess investment income. 133.21 (a) The board shall determine by May 1 of each year whether 133.22 or not the special fund has excess investment income. The 133.23 amount of excess investment income, if any, must be stated as a 133.24 dollar amount and reported by the executive secretary to the 133.25 mayor and governing body of the city, the state auditor, the 133.26 commissioner of finance, and the executive director of the 133.27 legislative commission on pensions and retirement. The dollar 133.28 amount of excess investment income up to one percent of the 133.29 assets of the special fund must be applied for the purpose 133.30 specified in paragraph (b). Excess investment income must not 133.31 be considered as income to or assets of the special fund for 133.32 actuarial valuations of the special fund for that year under 133.33 sections 69.77, 356.215, 356.216, and this section except to 133.34 offset the annual postretirement adjustment. Additional 133.35 investment income is any realized or unrealized investment 133.36 income other than the excess investment income and must be 134.1 included in the actuarial valuations performed under sections 134.2 69.77, 356.215, 356.216, and this section. 134.3 (b) The amount determined under paragraph (a) must be 134.4 applied as follows: the association shall apply the first 134.5 one-half of one percent of assets that constitute excess 134.6 investment income to the payment of an annual postretirement 134.7 adjustment to eligible members and the second one-half of one 134.8 percent of assets which constitute excess investment income 134.9 shall be applied to reduce the state amortization state aid or 134.10 supplementary amortization state aid payments otherwise due the 134.11 association under section 423A.02 for the current calendar 134.12 year. The amounts of all payments to eligible members shall not 134.13 exceed one-half of one percent of the assets of the fund. The 134.14 amount of each eligible member's postretirement adjustment shall 134.15 be calculated by dividing the total number of units to which 134.16 eligible members are entitled into the excess investment income 134.17 available for distribution to eligible members, and then 134.18 multiplying that result by the number of units to which each 134.19 eligible member is entitled. If this amount exceeds the total 134.20 monthly benefit that the eligible member was entitled to in the 134.21 prior year under the terms of this chapter, the association 134.22 shall pay the eligible member the lesser amount. Payment of the 134.23 annual postretirement adjustment must be in a lump-sum amount on 134.24 June 1 following the determination date in any year. In the 134.25 event an eligible member dies prior to the payment of the annual 134.26 postretirement adjustment, the executive secretary shall pay the 134.27 eligible member's estate the amount to which the member was 134.28 entitled. 134.29 Subd. 3. [ACTUARIAL ASSETS OF SPECIAL FUND 102 PERCENT OR 134.30 MORE.] When the actuarial assets of the special fund in any year 134.31 are 102 percent or more of its accrued liabilities according to 134.32 the most recent annual actuarial valuation of the special fund 134.33 prepared in accordance with sections 356.215 and 356.216, an 134.34 investment-related postretirement adjustment shall be determined 134.35 and paid pursuant to this subdivision. Payment of the annual 134.36 postretirement adjustment may only be made if there is excess 135.1 investment income. 135.2 (a) The board shall determine by May 1 of each year whether 135.3 or not the special fund has excess investment income. The 135.4 amount of excess investment income, if any, must be stated as a 135.5 dollar amount and reported by the executive secretary to the 135.6 mayor and governing body of the city, the state auditor, the 135.7 commissioner of finance, and the executive director of the 135.8 legislative commission on pensions and retirement. The dollar 135.9 amount of excess investment income up to 1-1/2 percent of the 135.10 assets of the fund must be applied for the purpose specified in 135.11 paragraph (b). Excess investment income must not be considered 135.12 as income to or assets of the special fund for actuarial 135.13 valuations of the special fund for that year under sections 135.14 69.77, 356.215, 356.216, and this section except to offset the 135.15 annual postretirement adjustment. Additional investment income 135.16 is any realized or unrealized investment income other than the 135.17 excess investment income and must be included in the actuarial 135.18 valuations performed under sections 69.77, 356.215, 356.216, and 135.19 this section. 135.20 (b) The amount determined under paragraph (a) must be 135.21 applied as follows: the association shall apply the 1-1/2 135.22 percent of assets that constitute excess investment income to 135.23 the payment of an annual postretirement adjustment to eligible 135.24 members. The amount of each eligible member's postretirement 135.25 adjustment shall be calculated by dividing the total number of 135.26 units to which eligible members are entitled into the excess 135.27 investment income available for distribution to eligible 135.28 members, and then multiplying that result by the number of units 135.29 to which each eligible member is entitled. Payment of the 135.30 annual postretirement adjustment must be in a lump-sum amount on 135.31 June 1 following the determination date in any year. In the 135.32 event an eligible member dies prior to the payment of the annual 135.33 postretirement adjustment, the executive secretary shall pay the 135.34 eligible member's estate the amount to which the member was 135.35 entitled. 135.36 Subd. 4. [ACTUARIAL ASSETS OF SPECIAL FUND 110 PERCENT OR 136.1 MORE.] When the actuarial assets of the special fund in any year 136.2 are 110 percent or more of its accrued liabilities according to 136.3 the most recent annual actuarial valuation of the special fund 136.4 prepared in accordance with sections 356.215 and 356.216, an 136.5 investment-related postretirement adjustment shall be determined 136.6 and paid pursuant to this subdivision. Payment of the annual 136.7 postretirement adjustment may be made only if a total excess 136.8 asset amount exists. 136.9 (a) The board shall determine by May 1 of each year whether 136.10 the special fund has a total excess asset amount for that year. 136.11 If a total excess asset amount exists for the given year, the 136.12 net total asset amount shall be determined. The executive 136.13 secretary shall report the total excess asset amount and net 136.14 total excess asset amount to the mayor and governing body of the 136.15 city, the state auditor, the commissioner of finance, and the 136.16 executive director of the legislative commission on pensions and 136.17 retirement. The portion of the net excess asset amount which is 136.18 distributed under this subdivision shall not be considered 136.19 income to or assets of the special fund for actuarial valuations 136.20 of the special fund for that year under sections 69.77, 356.215, 136.21 and 356.216 and Laws 2000, chapter 461, except to offset the 136.22 amount distributed. 136.23 (b) Twenty percent of the net total excess asset amount 136.24 determined under paragraph (a) is available for excess asset 136.25 amount payments under paragraph (c). 136.26 (c) Except as limited under paragraph (d), the net excess 136.27 asset amount payment to an eligible member is equal to the 136.28 amount determined under paragraph (b) multiplied by the units 136.29 applicable to the eligible member and divided by the total units 136.30 of all eligible members. 136.31 (d) A member who is an eligible member for the entire 12 136.32 months before the determination date is eligible for a full 136.33 excess asset amount payment pursuant to paragraph (c). A member 136.34 who is an eligible member for less than 12 months before the 136.35 determination date is eligible for a prorated excess asset 136.36 amount payment. If an eligible member dies before the 137.1 determination date and before the excess asset amount payment 137.2 commences, the association shall pay the eligible member's 137.3 excess asset amount payment to the eligible member's surviving 137.4 spouse or, if no surviving spouse, to the eligible member's 137.5 estate. 137.6 (e) The excess asset amount payments determined under this 137.7 subdivision commence on June 1 following the determination 137.8 date. The board may disburse payments to eligible members in a 137.9 lump sum, 12 monthly installments, or any other manner that the 137.10 board determines. 137.11 Subd. 5. [REPORT ON ANNUAL POSTRETIREMENT 137.12 ADJUSTMENTS.] The executive secretary shall submit a report on 137.13 the amount of all postretirement adjustments made under this 137.14 section and the manner in which those payments were determined 137.15 to the state auditor, the executive director of the legislative 137.16 commission on pensions and retirement, and the city clerk. 137.17 Subd. 6. [CITY TAX LEVY.] If in any year after the 137.18 actuarial value of special fund assets, according to the most 137.19 recent annual actuarial valuation prepared in accordance with 137.20 sections 356.215 and 356.216, is greater than 102 percent of the 137.21 actuarial accrued liabilities of the special fund and 137.22 subsequently the actuarial value of assets is less than 100 137.23 percent of the actuarial accrued liabilities according to the 137.24 most recent annual actuarial valuation prepared according to 137.25 sections 356.215 and 356.216, the city of Minneapolis is not 137.26 required to levy a property tax to fund any deficit unless the 137.27 fund has two successive years when the actuarial value of assets 137.28 is less than 100 percent of the actuarial accrued liabilities 137.29 according to the most recent annual actuarial valuation prepared 137.30 according to sections 356.215 and 356.216. 137.31 Sec. 7. [423C.07] [ACTUARIAL VALUATION DATE.] 137.32 Notwithstanding section 69.77, subdivision 2h; 356.215; or 137.33 356.216, the annual actuarial valuation of the association must 137.34 be completed by May 1 of each year. 137.35 Sec. 8. [423C.08] [MEMBER CONTRIBUTION REFUND TO 137.36 BENEFICIARY UPON DEATH.] 138.1 If an active, deferred, or retired member of the 138.2 association dies and no survivor benefit is payable, the 138.3 designated beneficiary of the decedent or, if none, the legal 138.4 representative of the estate of the decedent is entitled, upon 138.5 application, to a refund. The refund shall be an amount equal 138.6 to the member contributions to the credit of the decedent, plus 138.7 interest on those contributions at an annual compounded rate of 138.8 five percent from the first day of the month following the date 138.9 of death of the decedent, reduced by the sum of any service 138.10 pension or disability benefit previously paid by the fund to the 138.11 decedent. 138.12 Sec. 9. [423C.09] [PAYMENTS EXEMPT FROM PROCESS.] 138.13 All payments made, or to be made, by the association under 138.14 this chapter shall be totally exempt from garnishment, 138.15 execution, or other legal process, except as provided in section 138.16 518.58, 518.581, or 518.6111. No person entitled to a payment 138.17 shall have the right to assign the name, nor shall the 138.18 association have authority to recognize any assignment or to pay 138.19 any sum on account thereof. Any attempt to transfer any right 138.20 or claim, or any part thereof, shall be void. 138.21 Sec. 10. [423C.10] [LAW GOVERNING PENSIONS AND BENEFITS.] 138.22 A service pension or other retirement benefit for or on 138.23 behalf of a member of the Minneapolis firefighters relief 138.24 association must be calculated under the laws, articles of 138.25 incorporation, or relief association bylaws in effect on the day 138.26 that the active member terminated active employment in the 138.27 Minneapolis fire department as a firefighter. 138.28 Sec. 11. [423C.11] [WORKERS' COMPENSATION ACT NOT 138.29 AFFECTED.] 138.30 This chapter shall not be construed as abridging, 138.31 repealing, or amending the laws of this state relating to the 138.32 provisions of the law commonly known as the Workers' 138.33 Compensation Act. 138.34 Sec. 12. [423C.12] [RIGHT TO REDUCE PENSIONS.] 138.35 The relief association has the right and retains the right 138.36 to reduce the amount of pensions and benefits paid from its 139.1 special fund and to reduce and otherwise adjust those pensions 139.2 and benefits. For any pension or benefit that was reduced, the 139.3 relief association has the right and retains the right to 139.4 increase or otherwise adjust these pensions or benefits within 139.5 the limits of this act, as amended. 139.6 Sec. 13. [423C.13] [FINANCE DIRECTOR TO FILE REPORT WITH 139.7 THE REVENUE COMMISSIONER.] 139.8 (a) On or before March 1, each year, the Minneapolis 139.9 finance director shall file with the county auditor and the 139.10 commissioner of revenue a certificate stating that the 139.11 Minneapolis firefighters relief association exists and including 139.12 any other information that the commissioner or auditor may 139.13 require. 139.14 (b) The commissioner of revenue shall provide the 139.15 Minneapolis finance director with the necessary documents for 139.16 the city of Minneapolis and the Minneapolis firefighters relief 139.17 association to carry out its duties and to receive the benefits 139.18 of sections 69.011 to 69.051, 297I.05, and 297I.10. 139.19 Sec. 14. [423C.14] [STATE AUDITOR TO EXAMINE BOOKS.] 139.20 (a) The state auditor, annually, shall examine the books 139.21 and accounts of the secretary and of the treasurer of the 139.22 Minneapolis firefighters relief association. 139.23 (b) If the state auditor finds that any money in the 139.24 special fund of the relief association was expended for purposes 139.25 that were not authorized by this act, as amended, the state 139.26 auditor shall report that to the governor, who shall then direct 139.27 the commissioner of finance not to issue any further warrants to 139.28 the relief association until the state auditor reports that the 139.29 money which was unlawfully expended has been replaced. The 139.30 governor additionally may take such further action as the 139.31 emergency may demand. 139.32 Sec. 15. [423C.15] [ACTUARIAL PROVISIONS.] 139.33 Subdivision 1. [CITY NORMAL COST CONTRIBUTION ADJUSTMENT.] 139.34 Notwithstanding sections 69.77, 356.215, and 356.216, or other 139.35 law to the contrary, the required city contributions toward the 139.36 association's normal cost, as determined by the actuary, are 140.1 reduced below that otherwise payable by the full amount of 140.2 active member contributions required by law to be directed to 140.3 the association's health insurance escrow account rather than to 140.4 the special fund. 140.5 Subd. 2. [SUSPENSION OF NORMAL COST 140.6 CONTRIBUTIONS.] Notwithstanding the provisions of section 69.77, 140.7 or any other law to the contrary, if a total excess asset amount 140.8 exists, as defined in section 423C.01, subdivision 27, paragraph 140.9 (a), the city is not required to make a contribution to the fund 140.10 for the normal cost of active members. 140.11 Subd. 3. [AMORTIZATION TREATMENT.] Notwithstanding section 140.12 69.77, subdivision 2b; 356.215; 356.216; or any other law to the 140.13 contrary, if the actuarial report for the Minneapolis 140.14 firefighters relief association indicates an unfunded actuarial 140.15 accrued liability, the unfunded obligation is to be amortized on 140.16 a level dollar basis by December 31 of the year occurring 15 140.17 years later. If subsequent actuarial valuations determine a net 140.18 actuarial experience loss incurred during the year which ended 140.19 as of the day before the most recent actuarial valuation date, 140.20 any unfunded liability due to that loss is to be amortized on a 140.21 level dollar basis by December 31 of the year occurring 15 years 140.22 later. 140.23 Subd. 4. [LIMITATION.] Notwithstanding subdivision 3, the 140.24 amortization period may not exceed the average life expectancy 140.25 of the remaining members. 140.26 Sec. 16. [REPEALER.] 140.27 (a) Laws 1907, chapter 24; Laws 1913, chapters 318 and 419; 140.28 Laws 1917, chapter 196; Laws 1919, chapters 515 and 523; Laws 140.29 1921, chapter 404; Laws 1923, chapter 61; and Laws 1945, chapter 140.30 322, are repealed. 140.31 (b) Laws 1959, chapters 213; 491; and 568, are repealed. 140.32 (c) Laws 1961, chapter 109; Extra Session Laws 1961, 140.33 chapter 3; Laws 1963, chapter 318; Laws 1965, chapters 519 and 140.34 578; Laws 1967, chapters 819 and 824; and Laws 1969, chapters 140.35 123 and 287, are repealed. 140.36 (d) Laws 1971, chapter 542; Laws 1975, chapter 57; and Laws 141.1 1977, chapter 164, section 2, are repealed. 141.2 (e) Laws 1980, chapter 607, article XV, sections 8, 9, and 141.3 10; Laws 1988, chapters 572, sections 4, 5, and 6; and 574, 141.4 sections 3, 4, and 5; and Laws 1989, chapter 319, article 19, 141.5 sections 6 and 7, are repealed. 141.6 (f) Laws 1990, chapter 589, article 1, sections 5 and 6; 141.7 Laws 1992, chapters 429; 454, section 2; and 471, article 2; 141.8 Laws 1993, chapters 125; and 192, section 32; Laws 1994, 141.9 chapters 591; and 632, article 3, section 14; Laws 1996, chapter 141.10 448, articles 2, section 3; and 3, section 1; Laws 1997, chapter 141.11 233, article 4, sections 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 141.12 and 22; Laws 1998, chapter 390, article 7, section 2; and Laws 141.13 2000, chapter 461, article 17, sections 6, 7, 8, 9, 10, 11, 12, 141.14 and 13, are repealed. 141.15 Sec. 17. [EFFECTIVE DATE.] 141.16 Sections 1 to 16 are effective on the day after the city 141.17 council of the city of Minneapolis and its chief clerical 141.18 officer timely complete their compliance with Minnesota 141.19 Statutes, section 645.021, subdivisions 2 and 3. 141.20 ARTICLE 17 141.21 VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION PROVISIONS 141.22 Section 1. Minnesota Statutes 2000, section 424A.04, is 141.23 amended by adding a subdivision to read: 141.24 Subd. 3. [CONDITIONS ON RELIEF ASSOCIATION 141.25 CONSULTANTS.] (a) If a volunteer firefighter relief association 141.26 hires or contracts with a consultant to provide legal or 141.27 financial advice, the association shall obtain and the 141.28 consultant shall provide a copy of the consultant's certificate 141.29 of insurance. 141.30 (b) A consultant is any person who is employed under 141.31 contract to provide legal or financial advice and who is or who 141.32 represents to the volunteer firefighter relief association that 141.33 the person is: 141.34 (1) an actuary; 141.35 (2) a licensed public accountant or a certified public 141.36 accountant; 142.1 (3) an attorney; 142.2 (4) an investment advisor or manager, or an investment 142.3 counselor; 142.4 (5) an investment advisor or manager selection consultant; 142.5 (6) a pension benefit design advisor or consultant; or 142.6 (7) any other financial consultant. 142.7 Sec. 2. [EFFECTIVE DATE.] 142.8 Section 1 is effective July 1, 2001. 142.9 ARTICLE 18 142.10 SECOND SOCIAL SECURITY REFERENDUM FOR LEGISLATORS 142.11 Section 1. [3A.15] [COORDINATED PROGRAM OF LEGISLATORS 142.12 RETIREMENT PLAN.] 142.13 The coordinated program of the legislators retirement plan 142.14 is created. The provisions of sections 3A.01 to 3A.13 apply to 142.15 the coordinated program. 142.16 Sec. 2. [355.629] [SECOND SOCIAL SECURITY REFERENDUM.] 142.17 Subdivision 1. [ELECTION OF SOCIAL SECURITY COVERAGE.] Any 142.18 member of the legislators retirement plan established under 142.19 chapter 3A who did not elect coverage under an agreement under 142.20 section 218(d) of the Social Security Act as provided for in 142.21 section 355.624 is entitled to elect social security coverage 142.22 retroactive for the period consistent with applicable federal 142.23 law, in a second social security referendum. Any member who so 142.24 elects shall become a member of the coordinated program of the 142.25 legislators retirement plan under section 3A.15. Sufficient 142.26 assets shall be transferred to the program by the executive 142.27 director of the Minnesota state retirement system under 142.28 subdivision 4. The governor shall set a date for the referendum 142.29 and shall undertake any duties to amend the state's Social 142.30 Security Act, section 218 agreement with the Secretary of Health 142.31 and Human Services. 142.32 Subd. 2. [PAYMENT OF RETROACTIVE SOCIAL SECURITY 142.33 TAXES.] Effective retroactively with respect to any service 142.34 after the date of retroactive coverage by a legislator who is in 142.35 office on the date of the agreement or modification of the 142.36 agreement with the Secretary of Health and Human Services, the 143.1 executive director of the Minnesota state retirement system 143.2 shall cause to be paid an amount for each legislator, 143.3 retroactively included, equal to the legislator and state of 143.4 Minnesota taxes which would have been imposed by the Federal 143.5 Insurance Contributions Act had the service been covered at the 143.6 time performed. This payment shall be computed from the date of 143.7 retroactive coverage to the date that deductions are first taken 143.8 from the wages of each legislator for social security coverage. 143.9 Nothing in this section shall require a legislator to elect 143.10 retroactive social security coverage. 143.11 Subd. 3. [BALANCES DUE AFTER PAYMENT OF RETROACTIVE SOCIAL 143.12 SECURITY TAXES.] A legislator who elects social security 143.13 coverage under this section and thereby transfers from the 143.14 legislators retirement plan to the coordinated program of the 143.15 legislators retirement plan and from whose account retroactive 143.16 social security employee taxes are paid by the executive 143.17 director of the Minnesota state retirement system, shall be 143.18 required to reimburse the state general fund in an amount equal 143.19 to the Social Security employee and employer taxes paid on the 143.20 legislator's behalf for the period of retroactivity. In the 143.21 event that a legislator does not reimburse the state general 143.22 fund within 30 days following notification by the executive 143.23 director of the amount of reimbursement which is due, interest 143.24 at the rate of six percent per annum compounded annually from 143.25 the date the amount was first payable following notification 143.26 until the date payment is made shall accrue. 143.27 Subd. 4. [APPROPRIATION.] $155,000 is appropriated from 143.28 the general fund for the fiscal year ending June 30, 2002, to 143.29 the executive director of the Minnesota state retirement system 143.30 for transfer to the coordinated program of the legislators 143.31 retirement plan to implement this section. 143.32 Sec. 3. [EFFECTIVE DATE.] 143.33 Sections 1 and 2 are effective on the day following final 143.34 enactment.