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Capital IconMinnesota Legislature

SF 1808

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 10/11/2012 01:42pm

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8
2.9 2.10
2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 2.37 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 4.36 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 5.36 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 6.35 6.36 7.1 7.2 7.3 7.4 7.5
7.6
7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 7.36 7.37 7.38 7.39 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 8.35 8.36 8.37 8.38 8.39 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 9.36 9.37 9.38 9.39 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 10.35 10.36 10.37 10.38 10.39 10.40 10.41 10.42 10.43 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 11.35 11.36 11.37 11.38 11.39 11.40 11.41 11.42 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21
12.22
12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 12.35 12.36 12.37 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 13.35 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 14.35 14.36 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8
15.9
15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17
15.18
15.19 15.20
15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 16.35 16.36 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12
17.13
17.14 17.15
17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24
17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 18.1 18.2 18.3 18.4 18.5
18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13
18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 18.35 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27
19.28
19.29 19.30 19.31 19.32 19.33 19.34 19.35 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18
20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 20.35 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25
21.26
21.27 21.28
21.29 21.30 21.31 21.32 21.33 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15
22.16
22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28
22.29
22.30 22.31 22.32 22.33 23.1 23.2 23.3 23.4 23.5 23.6
23.7
23.8 23.9 23.10 23.11 23.12 23.13
23.14
23.15 23.16
23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23
24.24
24.25 24.26
24.27 24.28 24.29 24.30 24.31 24.32 24.33 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 25.35 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 26.35 26.36 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 27.35 27.36 28.1 28.2 28.3 28.4
28.5
28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33
28.34
29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 29.34 29.35 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 30.35
30.36
31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 31.34
31.35
32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13
32.14
32.15 32.16
32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8
33.9
33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 33.34 33.35 34.1 34.2 34.3 34.4
34.5
34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18
34.19
34.20 34.21
34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31
34.32
35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30
35.31
35.32 35.33 35.34 35.35 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 36.34
36.35
37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 37.34 37.35 37.36 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19
38.20
38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28
38.29
38.30 38.31 38.32 38.33 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10
39.11
39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 39.35 39.36 39.37 39.38 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 40.34 40.35 40.36 40.37 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 41.35 41.36 41.37 41.38 41.39 41.40 41.41 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 42.35 42.36 42.37 42.38 42.39 42.40 42.41 42.42 42.43 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 43.36 43.37 43.38 43.39 43.40 43.41 43.42 44.1 44.2 44.3 44.4 44.5 44.6 44.7
44.8
44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34 44.35 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18
45.19
45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 45.35 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28
46.29
46.30 46.31 46.32
46.33
47.1 47.2
47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20
47.21
47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32
47.33
48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8
48.9
48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23
48.24
48.25 48.26 48.27 48.28 48.29
48.30
48.31 48.32 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23
49.24
49.25 49.26 49.27 49.28 49.29
49.30
49.31 49.32
49.33 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34 51.1 51.2 51.3 51.4 51.5 51.6
51.7
51.8 51.9 51.10 51.11 51.12
51.13
51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 52.34 52.35 52.36 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 53.35 53.36 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 54.35 54.36 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33 55.34 55.35 55.36 56.1 56.2 56.3 56.4
56.5
56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 56.35 57.1 57.2
57.3
57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27
57.28
57.29 57.30 57.31 57.32 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14
58.15
58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 58.34 58.35 59.1 59.2 59.3 59.4 59.5 59.6 59.7
59.8
59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29
59.30
59.31 59.32 59.33 60.1 60.2
60.3
60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 60.34 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 61.35 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26
62.27
62.28 62.29 62.30 62.31 62.32 62.33 62.34 62.35 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 63.34 63.35 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 64.34 64.35 64.36 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 65.35 65.36 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 66.35 66.36 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26
67.27
67.28 67.29 67.30 67.31 67.32
67.33
68.1 68.2
68.3
68.4 68.5 68.6
68.7 68.8 68.9 68.10 68.11 68.12 68.13
68.14 68.15 68.16 68.17 68.18 68.19
68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 69.35 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11
70.12 70.13 70.14 70.15 70.16 70.17
70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 70.34 70.35 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 71.34 71.35 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17
72.18
72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 72.34 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 73.34 73.35 73.36 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33 74.34 74.35 74.36 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14
75.15 75.16 75.17
75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 75.33 75.34 75.35 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 76.32 76.33 76.34 76.35 76.36 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16
77.17 77.18
77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 77.34 77.35 77.36 77.37 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33 78.34 78.35 78.36 78.37 78.38 78.39 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 79.34 79.35 79.36 79.37 79.38 79.39 79.40 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 80.34 80.35 80.36 80.37 80.38 80.39 80.40 80.41 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 81.34 81.35 81.36 81.37 81.38 81.39 81.40 81.41 81.42 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15
82.16 82.17 82.18 82.19 82.20 82.21
82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 82.35 82.36 82.37 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12
83.13 83.14 83.15
83.16 83.17 83.18 83.19
83.20 83.21 83.22
83.23 83.24 83.25 83.26
83.27 83.28
83.29 83.30 83.31 83.32 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23
84.24 84.25 84.26 84.27 84.28 84.29
84.30 84.31
84.32 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 85.33 85.34 85.35 85.36 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 86.33 86.34 86.35 87.1 87.2 87.3 87.4 87.5 87.6 87.7
87.8
87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 87.33 87.34 87.35 88.1 88.2 88.3 88.4 88.5 88.6 88.7
88.8
88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 88.34 88.35 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8
89.9
89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33
89.34
90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 90.33 90.34 90.35 90.36 91.1 91.2
91.3
91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30 91.31 91.32 91.33 91.34 91.35 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14
92.15
92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18
93.19 93.20 93.21
93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 93.33 93.34 93.35
94.1
94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27
94.28
94.29 94.30 94.31 94.32 94.33 94.34 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 95.33 95.34 95.35 95.36 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 96.33 96.34 96.35 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33
97.34
97.35 98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11
98.12
98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32 98.33 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31
99.32 99.33 99.34
99.35 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 100.34 100.35 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13
101.14
101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 101.33 101.34 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 102.35 102.36 103.1 103.2 103.3 103.4
103.5 103.6 103.7
103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33 103.34 103.35 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 104.34 104.35 104.36 105.1 105.2 105.3
105.4
105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19
105.20
105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 106.1 106.2 106.3
106.4
106.5 106.6
106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 106.34 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21
107.22 107.23 107.24 107.25 107.26
107.27 107.28 107.29 107.30 107.31 107.32 107.33 107.34 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 108.32 108.33 108.34 108.35 108.36 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8
109.9 109.10 109.11 109.12 109.13
109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 109.34 109.35 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 110.34 110.35 111.1 111.2 111.3 111.4 111.5
111.6 111.7 111.8 111.9 111.10
111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 111.34 111.35 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27
112.28
112.29 112.30 112.31 112.32 112.33 112.34 112.35 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33 113.34 113.35 114.1 114.2 114.3 114.4
114.5
114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29
114.30

A bill for an act
relating to retirement; statewide and local retirement plans; revising certain
statutory actuarial assumptions; requiring comprehensive annual retirement
plan fund reporting by Minnesota Management and Budget, modifying
various Department of Human Services employment classifications eligible
for correctional retirement coverage; modifying certain health care savings
plan provisions; clarifying transfer eligibility for the unclassified state
employees retirement program; making various modifications in retirement
plans administered by the Public Employees Retirement Association, making
various revisions in the public employees privatization law; making various
administrative changes in the Teachers Retirement Association law, including
revising state and local aid programs inherited from the former Minneapolis
Teachers Retirement Fund Association; making various modifications to conform
with the federal Internal Revenue Code retirement plan requirements; updating
the public pension fund investment laws, merging the Fairmont Police Relief
Association and the Virginia fire consolidation account with the public employees
police and fire retirement plan; making various volunteer fire retirement
law changes; and making various small group or single person retirement
authorizations; amending Minnesota Statutes 2010, sections 11A.07, subdivision
4; 11A.14, subdivision 14; 11A.24; 16A.06, subdivision 9; 69.011, subdivision
1; 69.051, subdivisions 1, 1a, 3; 69.77, subdivision 9; 69.772, subdivision 4;
69.773, subdivision 5; 69.775; 69.80; 126C.41, subdivision 3; 352.90; 352.91,
subdivisions 3c, 3d, 3e, 3f; 352.98, subdivisions 3, 4, 5, 8; 352D.02, subdivision
3; 353.01, subdivision 47; 353.50, subdivision 7; 353.656, subdivision 2;
353F.02, subdivision 4; 353F.04, subdivision 1; 353F.07; 353G.08, by adding a
subdivision; 354.51, subdivision 5; 354A.08; 354A.12, subdivision 3c; 356.215,
subdivisions 1, 11; 356.219, subdivisions 1, 8; 356.415, subdivision 1d; 356.611,
subdivisions 2, 3, 3a, 4, by adding a subdivision; 356.635, subdivisions 6, 9;
356A.01, subdivision 19; 356A.06, subdivisions 6, 7; 423A.02, subdivision 3;
424A.001, subdivision 4; 424A.01, subdivision 6; 424A.016, subdivisions 5, 6;
424A.02, subdivisions 1, 7, 9; 424A.04, subdivision 3; 424A.06, subdivision
2; Minnesota Statutes 2011 Supplement, sections 69.77, subdivisions 1a, 4;
353.01, subdivisions 2a, 6, 16; 353.668, subdivision 4; 356.215, subdivision 8;
Laws 2002, chapter 392, article 1, section 8; proposing coding for new law in
Minnesota Statutes, chapters 16A; 353; 354; repealing Minnesota Statutes 2010,
sections 128D.18; 354A.12, subdivision 3b; 356.219, subdivision 4; 423A.06;
Laws 1947, chapter 624, sections 1; 2; 3; 4; 5; 6; 8; 9; 10; 11; 12; 13; 14; 15; 16;
17; 18; 19; 21; 22; Laws 1953, chapter 399, as amended; Laws 1961, chapter 420,
sections 2, as amended; 3; 4; 5, as amended; 6; Laws 1963, chapter 407, section
1, as amended; Laws 1963, chapter 423; Laws 1965, chapter 546, sections 1; 2,
as amended; 3; Laws 1969, chapter 578, sections 1; 2; 3; Laws 1974, chapter
183, as amended; Laws 1982, chapter 574, section 1; Laws 1982, chapter 578,
article 1, section 14; Laws 1983, chapter 69, section 1; Laws 1984, chapter 547,
section 27; Laws 1987, chapter 372, article 2, section 14; Laws 1988, chapter
709, sections 1, as amended; 2; Laws 1991, chapter 62, sections 1; 2; Laws 1992,
chapter 465, section 1; Laws 1999, chapter 222, article 3, sections 3; 4; 5.

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

ARTICLE 1

STATUTORY ACTUARIAL ASSUMPTION AND CONFORMING CHANGES

Section 1.

Minnesota Statutes 2010, section 356.215, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For the purposes of sections 3.85 and 356.20 to
356.23, each of the terms in the following paragraphs has the meaning given.

(b) "Actuarial valuation" means a set of calculations prepared by an actuary retained
under section 356.214 if so required under section 3.85, or otherwise, by an approved
actuary, to determine the normal cost and the accrued actuarial liabilities of a benefit
plan, according to the entry age actuarial cost method and based upon stated assumptions
including, but not limited to rates of interest, mortality, salary increase, disability,
withdrawal, and retirement and to determine the payment necessary to amortize over a
stated period any unfunded accrued actuarial liability disclosed as a result of the actuarial
valuation of the benefit plan.

(c) "Approved actuary" means a person who is regularly engaged in the business of
providing actuarial services and who is a fellow in the Society of Actuaries.

(d) "Entry age actuarial cost method" means an actuarial cost method under which
the actuarial present value of the projected benefits of each individual currently covered
by the benefit plan and included in the actuarial valuation is allocated on a level basis over
the service of the individual, if the benefit plan is governed by section 69.773, or over the
earnings of the individual, if the benefit plan is governed by any other law, between the
entry age and the assumed exit age, with the portion of the actuarial present value which is
allocated to the valuation year to be the normal cost and the portion of the actuarial present
value not provided for at the valuation date by the actuarial present value of future normal
costs to be the actuarial accrued liability, with aggregation in the calculation process to be
the sum of the calculated result for each covered individual and with recognition given to
any different benefit formulas which may apply to various periods of service.

(e) "Experience study" means a report providing experience data and an actuarial
analysis of the adequacy of the actuarial assumptions on which actuarial valuations are
based.

(f) "Actuarial value of assets" means:

deleted text begin (1) For the July 1, 2009, actuarial valuation, the market value of all assets as of
June 30, 2009, reduced by:
deleted text end

deleted text begin (i) 20 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2006,
and June 30, 2005, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2005;
deleted text end

deleted text begin (ii) 40 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2007,
and June 30, 2006, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2006;
deleted text end

deleted text begin (iii) 60 percent of the difference between the actual net change in the market value
of assets other than the Minnesota postretirement investment fund between June 30, 2008,
and June 30, 2007, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2007;
deleted text end

deleted text begin (iv) 80 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2008; and
deleted text end

deleted text begin (v) if applicable, 80 percent of the difference between the actual net change in the
market value of the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets over that fiscal
year period if the assets had increased at 8.5 percent annually.
deleted text end

deleted text begin (2) For the July 1, 2010, actuarial valuation, the market value of all assets as of
June 30, 2010, reduced by:
deleted text end

deleted text begin (i) 20 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2007,
and June 30, 2006, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2006;
deleted text end

deleted text begin (ii) 40 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2008,
and June 30, 2007, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2007;
deleted text end

deleted text begin (iii) 60 percent of the difference between the actual net change in the market value
of assets other than the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2008;
deleted text end

deleted text begin (iv) 80 percent of the difference between the actual net change in the market value of
total assets between June 30, 2010, and June 30, 2009, and the computed increase in the
market value of total assets over that fiscal year period if the assets had earned a rate of
return on assets equal to the annual percentage preretirement interest rate assumption used
in the actuarial valuation for July 1, 2009; and
deleted text end

deleted text begin (v) if applicable, 60 percent of the difference between the actual net change in the
market value of the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets over that fiscal
year period if the assets had increased at 8.5 percent annually.
deleted text end

deleted text begin (3) For the July 1, 2011, actuarial valuation, the market value of all assets as of
June 30, 2011, reduced by:
deleted text end

deleted text begin (i) 20 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2008,
and June 30, 2007, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2007;
deleted text end

deleted text begin (ii) 40 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2008;
deleted text end

deleted text begin (iii) 60 percent of the difference between the actual net change in the market value
of the total assets between June 30, 2010, and June 30, 2009, and the computed increase in
the market value of the total assets over that fiscal year period if the assets had earned
a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2009;
deleted text end

deleted text begin (iv) 80 percent of the difference between the actual net change in the market value of
total assets between June 30, 2011, and June 30, 2010, and the computed increase in the
market value of total assets over that fiscal year period if the assets had earned a rate of
return on assets equal to the annual percentage preretirement interest rate assumption used
in the actuarial valuation for July 1, 2010; and
deleted text end

deleted text begin (v) if applicable, 40 percent of the difference between the actual net change in the
market value of the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets over that fiscal
year period if the assets had increased at 8.5 percent annually.
deleted text end

deleted text begin (4)deleted text end new text begin (1) new text end For the July 1, 2012, actuarial valuation, the market value of all assets as of
June 30, 2012, reduced by:

(i) 20 percent of the difference between the actual net change in the market value of
assets other than the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets other than the
Minnesota postretirement investment fund over that fiscal year period if the assets had
earned a rate of return on assets equal to the annual percentage preretirement interest rate
assumption used in the actuarial valuation for July 1, 2008;

(ii) 40 percent of the difference between the actual net change in the market value of
total assets between June 30, 2010, and June 30, 2009, and the computed increase in the
market value of total assets over that fiscal year period if the assets had earned a rate of
return on assets equal to the annual percentage preretirement interest rate assumption used
in the actuarial valuation for July 1, 2009;

(iii) 60 percent of the difference between the actual net change in the market value
of total assets between June 30, 2011, and June 30, 2010, and the computed increase in the
market value of total assets over that fiscal year period if the assets had earned a rate of
return on assets equal to the annual percentage preretirement interest rate assumption used
in the actuarial valuation for July 1, 2010;

(iv) 80 percent of the difference between the actual net change in the market value of
total assets between June 30, 2012, and June 30, 2011, and the computed increase in the
market value of total assets over that fiscal year period if the assets had earned a rate of
return on assets equal to the annual percentage preretirement interest rate assumption used
in the actuarial valuation for July 1, 2011; and

(v) if applicable, 20 percent of the difference between the actual net change in the
market value of the Minnesota postretirement investment fund between June 30, 2009,
and June 30, 2008, and the computed increase in the market value of assets over that fiscal
year period if the assets had increased at 8.5 percent annually.

deleted text begin (5)deleted text end new text begin (2) new text end For the July 1, 2013, and following actuarial valuations, the market value of
all assets as of the preceding June 30, reduced by:

(i) 20 percent of the difference between the actual net change in the market value
of total assets between the June 30 that occurred three years earlier and the June 30 that
occurred four years earlier and the computed increase in the market value of total assets
over that fiscal year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial valuation
for the July 1 that occurred four years earlier;

(ii) 40 percent of the difference between the actual net change in the market value
of total assets between the June 30 that occurred two years earlier and the June 30 that
occurred three years earlier and the computed increase in the market value of total assets
over that fiscal year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial valuation
for the July 1 that occurred three years earlier;

(iii) 60 percent of the difference between the actual net change in the market value
of total assets between the June 30 that occurred one year earlier and the June 30 that
occurred two years earlier and the computed increase in the market value of total assets
over that fiscal year period if the assets had earned a rate of return on assets equal to the
annual percentage preretirement interest rate assumption used in the actuarial valuation
for the July 1 that occurred two years earlier; and

(iv) 80 percent of the difference between the actual net change in the market value
of total assets between the most recent June 30 and the June 30 that occurred one year
earlier and the computed increase in the market value of total assets over that fiscal year
period if the assets had earned a rate of return on assets equal to the annual percentage
preretirement interest rate assumption used in the actuarial valuation for the July 1 that
occurred one year earlier.

(g) "Unfunded actuarial accrued liability" means the total current and expected
future benefit obligations, reduced by the sum of the actuarial value of assets and the
present value of future normal costs.

(h) "Pension benefit obligation" means the actuarial present value of credited
projected benefits, determined as the actuarial present value of benefits estimated to be
payable in the future as a result of employee service attributing an equal benefit amount,
including the effect of projected salary increases and any step rate benefit accrual rate
differences, to each year of credited and expected future employee service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 2.

Minnesota Statutes 2011 Supplement, section 356.215, subdivision 8, is
amended to read:


Subd. 8.

Interest and salary assumptions.

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

new text begin (1) select and ultimate interest rate assumption
new text end

plan
new text begin ultimate
new text end preretirement
interest rate
assumption
new text begin ultimate
new text end postretirement
interest rate
assumption
general state employees retirement plan
8.5%
6.0%
correctional state employees retirement plan
8.5
6.0
State Patrol retirement plan
8.5
6.0
legislators retirement plan
deleted text begin 8.5deleted text end new text begin 0.0new text end
deleted text begin 6.0deleted text end new text begin -2.0 until June
30, 2040, and -2.5
after June 30, 2040
new text end
elective state officers retirement plan
deleted text begin 8.5deleted text end new text begin 0.0new text end
deleted text begin 6.0deleted text end new text begin -2.0 until June
30, 2040, and -2.5
after June 30, 2040
new text end
judges retirement plan
8.5
6.0
general public employees retirement plan
8.5
6.0
public employees police and fire retirement plan
8.5
6.0
local government correctional service
retirement plan
8.5
6.0
teachers retirement plan
8.5
6.0
Duluth teachers retirement plan
8.5
8.5
St. Paul teachers retirement plan
8.5
8.5

new text begin Except for the legislators retirement plan and the elective state officers retirement
plan, the select preretirement interest rate assumption for the period after June 30, 2012,
through June 30, 2017, is 8.0 percent. Except for the legislators retirement plan and the
elective state officers retirement plan, the select postretirement interest rate assumption for
the period after June 30, 2012, through June 30, 2017, is 5.5 percent, except for the Duluth
teachers retirement plan and the St. Paul teachers retirement plan, each with a select
postretirement interest rate assumption for the period after June 30, 2012, through June
30, 2017, of 8.0 percent.
new text end

new text begin (2) single rate preretirement and postretirement interest rate assumption
new text end

new text begin plan
new text end
new text begin interest rate
assumption
new text end
Fairmont Police Relief Association
5.0
deleted text begin 5.0
deleted text end
Virginia Fire Department Relief Association
5.0
deleted text begin 5.0
deleted text end
Bloomington Fire Department Relief Association
6.0
deleted text begin 6.0
deleted text end
local monthly benefit volunteer firefighters relief
associations
5.0
deleted text begin 5.0
deleted text end

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

(1) single rate future salary increase assumption

plan
future salary increase assumption
legislators retirement plan
5.0%
judges retirement plan
deleted text begin 4.0deleted text end new text begin 3.0new text end
Fairmont Police Relief Association
3.5
Virginia Fire Department Relief Association
3.5
Bloomington Fire Department Relief
Association
4.0

(2)new text begin age-related future salary increasenew text end age-related select and ultimate future salary
increase assumption or graded rate future salary increase assumption

plan
future salary increase assumption
deleted text begin correctional state employees retirement plan
deleted text end
deleted text begin assumption D
deleted text end
deleted text begin State Patrol retirement plan
deleted text end
deleted text begin assumption C
deleted text end
local government correctional service retirement plan
assumption C
Duluth teachers retirement plan
assumption A
St. Paul teachers retirement plan
assumption B

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

The ultimate future salary increase assumption is:

age
A
B
C
deleted text begin D
deleted text end
16
8.00%
6.90%
deleted text begin 7.7500% deleted text end new text begin 9.00%
new text end
deleted text begin 7.2500%
deleted text end
17
8.00
6.90
deleted text begin 7.7500 deleted text end new text begin 9.00
new text end
deleted text begin 7.2500
deleted text end
18
8.00
6.90
deleted text begin 7.7500 deleted text end new text begin 9.00
new text end
deleted text begin 7.2500
deleted text end
19
8.00
6.90
deleted text begin 7.7500 deleted text end new text begin 9.00
new text end
deleted text begin 7.2500
deleted text end
20
6.90
6.90
deleted text begin 7.7500 deleted text end new text begin 9.00
new text end
deleted text begin 7.2500
deleted text end
21
6.90
6.90
deleted text begin 7.1454 deleted text end new text begin 8.75
new text end
deleted text begin 6.6454
deleted text end
22
6.90
6.90
deleted text begin 7.0725 deleted text end new text begin 8.50
new text end
deleted text begin 6.5725
deleted text end
23
6.85
6.85
deleted text begin 7.0544 deleted text end new text begin 8.25
new text end
deleted text begin 6.5544
deleted text end
24
6.80
6.80
deleted text begin 7.0363 deleted text end new text begin 8.00
new text end
deleted text begin 6.5363
deleted text end
25
6.75
6.75
deleted text begin 7.0000 deleted text end new text begin 7.75
new text end
deleted text begin 6.5000
deleted text end
26
6.70
6.70
deleted text begin 7.0000 deleted text end new text begin 7.50
new text end
deleted text begin 6.5000
deleted text end
27
6.65
6.65
deleted text begin 7.0000 deleted text end new text begin 7.25
new text end
deleted text begin 6.5000
deleted text end
28
6.60
6.60
deleted text begin 7.0000 deleted text end new text begin 7.00
new text end
deleted text begin 6.5000
deleted text end
29
6.55
6.55
deleted text begin 7.0000 deleted text end new text begin 6.75
new text end
deleted text begin 6.5000
deleted text end
30
6.50
6.50
deleted text begin 7.0000 deleted text end new text begin 6.75
new text end
deleted text begin 6.5000
deleted text end
31
6.45
6.45
deleted text begin 7.0000 deleted text end new text begin 6.50
new text end
deleted text begin 6.5000
deleted text end
32
6.40
6.40
deleted text begin 7.0000 deleted text end new text begin 6.50
new text end
deleted text begin 6.5000
deleted text end
33
6.35
6.35
deleted text begin 7.0000 deleted text end new text begin 6.50
new text end
deleted text begin 6.5000
deleted text end
34
6.30
6.30
deleted text begin 7.0000 deleted text end new text begin 6.25
new text end
deleted text begin 6.5000
deleted text end
35
6.25
6.25
deleted text begin 7.0000 deleted text end new text begin 6.25
new text end
deleted text begin 6.5000
deleted text end
36
6.20
6.20
deleted text begin 6.9019 deleted text end new text begin 6.00
new text end
deleted text begin 6.4019
deleted text end
37
6.15
6.15
deleted text begin 6.8074 deleted text end new text begin 6.00
new text end
deleted text begin 6.3074
deleted text end
38
6.10
6.10
deleted text begin 6.7125 deleted text end new text begin 6.00
new text end
deleted text begin 6.2125
deleted text end
39
6.05
6.05
deleted text begin 6.6054 deleted text end new text begin 5.75
new text end
deleted text begin 6.1054
deleted text end
40
6.00
6.00
deleted text begin 6.5000 deleted text end new text begin 5.75
new text end
deleted text begin 6.0000
deleted text end
41
5.90
5.95
deleted text begin 6.3540 deleted text end new text begin 5.75
new text end
deleted text begin 5.8540
deleted text end
42
5.80
5.90
deleted text begin 6.2087 deleted text end new text begin 5.50
new text end
deleted text begin 5.7087
deleted text end
43
5.70
5.85
deleted text begin 6.0622 deleted text end new text begin 5.25
new text end
deleted text begin 5.5622
deleted text end
44
5.60
5.80
deleted text begin 5.9048 deleted text end new text begin 5.25
new text end
deleted text begin 5.4078
deleted text end
45
5.50
5.75
deleted text begin 5.7500 deleted text end new text begin 5.00
new text end
deleted text begin 5.2500
deleted text end
46
5.40
5.70
deleted text begin 5.6940 deleted text end new text begin 5.00
new text end
deleted text begin 5.1940
deleted text end
47
5.30
5.65
deleted text begin 5.6375 deleted text end new text begin 5.00
new text end
deleted text begin 5.1375
deleted text end
48
5.20
5.60
deleted text begin 5.5822 deleted text end new text begin 5.00
new text end
deleted text begin 5.0822
deleted text end
49
5.10
5.55
deleted text begin 5.5404 deleted text end new text begin 5.00
new text end
deleted text begin 5.0404
deleted text end
50
5.00
5.50
deleted text begin 5.5000 deleted text end new text begin 5.00
new text end
deleted text begin 5.0000
deleted text end
51
4.90
5.45
deleted text begin 5.4384 deleted text end new text begin 5.00
new text end
deleted text begin 4.9384
deleted text end
52
4.80
5.40
deleted text begin 5.3776 deleted text end new text begin 5.00
new text end
deleted text begin 4.8776
deleted text end
53
4.70
5.35
deleted text begin 5.3167 deleted text end new text begin 5.00
new text end
deleted text begin 4.8167
deleted text end
54
4.60
5.30
deleted text begin 5.2826 deleted text end new text begin 5.00
new text end
deleted text begin 4.7826
deleted text end
55
4.50
5.25
deleted text begin 5.2500 deleted text end new text begin 4.75
new text end
deleted text begin 4.7500
deleted text end
56
4.40
5.20
deleted text begin 5.2500 deleted text end new text begin 4.75
new text end
deleted text begin 4.7500
deleted text end
57
4.30
5.15
deleted text begin 5.2500 deleted text end new text begin 4.50
new text end
deleted text begin 4.7500
deleted text end
58
4.20
5.10
deleted text begin 5.2500 deleted text end new text begin 4.25
new text end
deleted text begin 4.7500
deleted text end
59
4.10
5.05
deleted text begin 5.2500 deleted text end new text begin 4.25
new text end
deleted text begin 4.7500
deleted text end
60
4.00
5.00
deleted text begin 5.2500 deleted text end new text begin 4.25
new text end
deleted text begin 4.7500
deleted text end
61
3.90
5.00
deleted text begin 5.2500 deleted text end new text begin 4.25
new text end
deleted text begin 4.7500
deleted text end
62
3.80
5.00
deleted text begin 5.2500 deleted text end new text begin 4.25
new text end
deleted text begin 4.7500
deleted text end
63
3.70
5.00
deleted text begin 5.2500 deleted text end new text begin 4.25
new text end
deleted text begin 4.7500
deleted text end
64
3.60
5.00
deleted text begin 5.2500 deleted text end new text begin 4.25
new text end
deleted text begin 4.7500
deleted text end
65
3.50
5.00
deleted text begin 5.2500 deleted text end new text begin 4.00
new text end
deleted text begin 4.7500
deleted text end
66
3.50
5.00
deleted text begin 5.2500 deleted text end new text begin 4.00
new text end
deleted text begin 4.7500
deleted text end
67
3.50
5.00
deleted text begin 5.2500 deleted text end new text begin 4.00
new text end
deleted text begin 4.7500
deleted text end
68
3.50
5.00
deleted text begin 5.2500 deleted text end new text begin 4.00
new text end
deleted text begin 4.7500
deleted text end
69
3.50
5.00
deleted text begin 5.2500 deleted text end new text begin 4.00
new text end
deleted text begin 4.7500
deleted text end
70
3.50
5.00
deleted text begin 5.2500 deleted text end new text begin 4.00
new text end
deleted text begin 4.7500
deleted text end

(3) service-related ultimate future salary increase assumption

general state employees retirement plan of the
Minnesota State Retirement System
assumption A
general employees retirement plan of the Public
Employees Retirement Association
assumption B
Teachers Retirement Association
assumption C
public employees police and fire retirement plan
assumption D
new text begin State Patrol retirement plan
new text end
new text begin assumption E
new text end
new text begin correctional state employees retirement plan of the
Minnesota State Retirement System
new text end
new text begin assumption F
new text end
service
length
A
B
C
D
new text begin E
new text end
new text begin F
new text end
1
deleted text begin 10.75deleted text end new text begin 10.50new text end %
deleted text begin 12.25deleted text end new text begin 12.03new text end %
12.00%
13.00%
new text begin 8.00%
new text end
new text begin 6.00%
new text end
2
deleted text begin 8.35 deleted text end new text begin 8.10
new text end
deleted text begin 9.15 deleted text end new text begin 8.90
new text end
9.00
11.00
new text begin 7.50
new text end
new text begin 5.85
new text end
3
deleted text begin 7.15 deleted text end new text begin 6.90
new text end
deleted text begin 7.75 deleted text end new text begin 7.46
new text end
8.00
9.00
new text begin 7.00
new text end
new text begin 5.70
new text end
4
deleted text begin 6.45 deleted text end new text begin 6.20
new text end
deleted text begin 6.85 deleted text end new text begin 6.58
new text end
7.50
8.00
new text begin 6.75
new text end
new text begin 5.55
new text end
5
deleted text begin 5.95 deleted text end new text begin 5.70
new text end
deleted text begin 6.25 deleted text end new text begin 5.97
new text end
7.25
6.50
new text begin 6.50
new text end
new text begin 5.40
new text end
6
deleted text begin 5.55 deleted text end new text begin 5.30
new text end
deleted text begin 5.75 deleted text end new text begin 5.52
new text end
7.00
6.10
new text begin 6.25
new text end
new text begin 5.25
new text end
7
deleted text begin 5.25 deleted text end new text begin 5.00
new text end
deleted text begin 5.45 deleted text end new text begin 5.16
new text end
6.85
5.80
new text begin 6.00
new text end
new text begin 5.10
new text end
8
deleted text begin 4.95 deleted text end new text begin 4.70
new text end
deleted text begin 5.15 deleted text end new text begin 4.87
new text end
6.70
5.60
new text begin 5.85
new text end
new text begin 4.95
new text end
9
deleted text begin 4.75 deleted text end new text begin 4.50
new text end
deleted text begin 4.85 deleted text end new text begin 4.63
new text end
6.55
5.40
new text begin 5.70
new text end
new text begin 4.80
new text end
10
deleted text begin 4.65 deleted text end new text begin 4.40
new text end
deleted text begin 4.65 deleted text end new text begin 4.42
new text end
6.40
5.30
new text begin 5.55
new text end
new text begin 4.65
new text end
11
deleted text begin 4.45 deleted text end new text begin 4.20
new text end
deleted text begin 4.45 deleted text end new text begin 4.24
new text end
6.25
5.20
new text begin 5.40
new text end
new text begin 4.55
new text end
12
deleted text begin 4.35 deleted text end new text begin 4.10
new text end
deleted text begin 4.35 deleted text end new text begin 4.08
new text end
6.00
5.10
new text begin 5.25
new text end
new text begin 4.45
new text end
13
deleted text begin 4.25 deleted text end new text begin 4.00
new text end
deleted text begin 4.15 deleted text end new text begin 3.94
new text end
5.75
5.00
new text begin 5.10
new text end
new text begin 4.35
new text end
14
deleted text begin 4.05 deleted text end new text begin 3.80
new text end
deleted text begin 4.05 deleted text end new text begin 3.82
new text end
5.50
4.90
new text begin 4.95
new text end
new text begin 4.25
new text end
15
deleted text begin 3.95 deleted text end new text begin 3.70
new text end
deleted text begin 3.95 deleted text end new text begin 3.70
new text end
5.25
4.80
new text begin 4.80
new text end
new text begin 4.15
new text end
16
deleted text begin 3.85 deleted text end new text begin 3.60
new text end
deleted text begin 3.85 deleted text end new text begin 3.60
new text end
5.00
4.80
new text begin 4.65
new text end
new text begin 4.05
new text end
17
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.51
new text end
4.75
4.80
new text begin 4.50
new text end
new text begin 3.95
new text end
18
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
4.50
4.80
new text begin 4.35
new text end
new text begin 3.85
new text end
19
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
4.25
4.80
new text begin 4.20
new text end
new text begin 3.75
new text end
20
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
4.00
4.80
new text begin 4.05
new text end
new text begin 3.75
new text end
21
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
3.90
4.70
new text begin 4.00
new text end
new text begin 3.75
new text end
22
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
3.80
4.60
new text begin 4.00
new text end
new text begin 3.75
new text end
23
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
3.70
4.50
new text begin 4.00
new text end
new text begin 3.75
new text end
24
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
3.60
4.50
new text begin 4.00
new text end
new text begin 3.75
new text end
25
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
3.50
4.50
new text begin 4.00
new text end
new text begin 3.75
new text end
26
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
3.50
4.50
new text begin 4.00
new text end
new text begin 3.75
new text end
27
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
3.50
4.50
new text begin 4.00
new text end
new text begin 3.75
new text end
28
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
3.50
4.50
new text begin 4.00
new text end
new text begin 3.75
new text end
29
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
3.50
4.50
new text begin 4.00
new text end
new text begin 3.75
new text end
30 or
more
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
deleted text begin 3.75 deleted text end new text begin 3.50
new text end
3.50
4.50
new text begin 4.00
new text end
new text begin 3.75
new text end

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

plan
payroll growth assumption
general state employees retirement plan of the
Minnesota State Retirement System
3.75%
correctional state employees retirement plan
deleted text begin 4.50 deleted text end new text begin 3.75
new text end
State Patrol retirement plan
deleted text begin 4.50 deleted text end new text begin 3.75
new text end
deleted text begin legislators retirement plan
deleted text end
deleted text begin 4.50
deleted text end
judges retirement plan
deleted text begin 4.00 deleted text end new text begin 3.00
new text end
general employees retirement plan of the Public
Employees Retirement Association
deleted text begin 3.75 deleted text end new text begin 3.75
new text end
public employees police and fire retirement plan
deleted text begin 3.75 deleted text end new text begin 3.75
new text end
local government correctional service retirement plan
deleted text begin 4.50 deleted text end new text begin 3.75
new text end
teachers retirement plan
deleted text begin 3.75 deleted text end new text begin 3.75
new text end
Duluth teachers retirement plan
deleted text begin 4.50 deleted text end new text begin 4.50
new text end
St. Paul teachers retirement plan
deleted text begin 5.00 deleted text end new text begin 5.00
new text end

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2012.
new text end

Sec. 3.

Minnesota Statutes 2010, section 356.215, subdivision 11, is amended to read:


Subd. 11.

Amortization contributions.

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

(b) For any retirement plan other than the general state employees retirement plan
of the Minnesota State Retirement System or a retirement plan governed by paragraph
(d), (e), (f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions
used for calculating the actuarial accrued liability of the fund, a change in the benefit
plan governing annuities and benefits payable from the fund, a change in the actuarial
cost method used in calculating the actuarial accrued liability of all or a portion of the
fund, or a combination of the three, which change or changes by itself or by themselves
without inclusion of any other items of increase or decrease produce a net increase in the
unfunded actuarial accrued liability of the fund, the established date for full funding is the
first actuarial valuation date occurring after June 1, 2020.

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

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

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

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

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

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

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

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

(d) For the MERF division of the Public Employees Retirement Association, the
established date for full funding is June 30, 2031.

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

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

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

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

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

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

(k) For the general state employees retirement plan of the Minnesota State
Retirement System, the established date for full funding is June 30, 2040.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 4. new text begin DELAYED REPORTING DATE FOR CERTAIN QUADRENNIAL
EXPERIENCE STUDIES.
new text end

new text begin Notwithstanding any provision of Minnesota Statutes, section 356.215, subdivisions
2 and 3, paragraph (c), to the contrary, the next experience studies of the general state
employees retirement plan of the Minnesota State Retirement System, the general
employees retirement plan of the Public Employees Retirement Association, and the
Teachers Retirement Association must cover the period of July 1, 2008, through June 30,
2014, and must be filed with the applicable entities on June 30, 2015.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

CONTRIBUTION ADEQUACY REPORTING

Section 1.

new text begin [16A.106] ADEQUACY OF BUDGETED AND FORECASTED
DEFINED BENEFIT PLAN RETIREMENT CONTRIBUTIONS.
new text end

new text begin (a) On or before May 30 or the date occurring 30 days after the conclusion of
the regular legislative session, whichever is later, in each odd-numbered year, the
commissioner shall prepare a report to the legislature on the adequacy of the budgeted
appropriations, including retirement-related state aids, and forecasted member and
employer retirement contributions to meet the total calculated actuarial funding
requirements of the statewide and major local defined benefit retirement plans.
new text end

new text begin (b) The total calculated actuarial funding requirements are the sum of:
new text end

new text begin (1) the normal cost;
new text end

new text begin (2) the administrative expenses as defined in section 356.20, subdivision 4,
paragraph (c); and
new text end

new text begin (3) the supplemental amortization contribution requirement using the amortization
target date specified in section 356.215, subdivision 11.
new text end

new text begin The total calculated actuarial funding requirements must be as determined in the
most recent actuarial valuation of the retirement plan prepared by an approved actuary
under section 356.215 and the most recent standards for actuarial work adopted by the
Legislative Commission on Pensions and Retirement.
new text end

new text begin (c) The statewide and major local retirement plans are the defined benefit retirement
plans listed in section 356.20, subdivision 2, clauses (1) to (6), (9), (12), (13), and (14).
new text end

new text begin (d) The report must also include as an exhibit as of the start of the most recent fiscal
year, the following information for each statewide and major local retirement plan in a
single comparative table:
new text end

new text begin (1) the year the retirement plan was enacted or established;
new text end

new text begin (2) the number of active members of the retirement plan;
new text end

new text begin (3) the number of retirement annuitants and retirement benefit recipients;
new text end

new text begin (4) whether or not the retirement plan supplements the federal Old Age, Survivors
and Disability Insurance program;
new text end

new text begin (5) the complete schedule of accrued benefit obligations and projected benefit
obligations from the latest actuarial valuation reports;
new text end

new text begin (6) whether or not the retirement plan permits the purchase of service credit for
out-of-state service or time;
new text end

new text begin (7) the percentage of covered salary employer contributions;
new text end

new text begin (8) the percentage of covered salary member contributions;
new text end

new text begin (9) the amount of unfunded actuarial accrued liability calculated using the actuarial
value of assets and the market value of assets;
new text end

new text begin (10) the percentage that assets, at actuarial value and at market value, represent
of the actuarial accrued liability;
new text end

new text begin (11) the normal retirement age or ages;
new text end

new text begin (12) the salary base definition and the percentage of salary base benefit accrual rate
per year of service credit formula for a normal retirement annuity;
new text end

new text begin (13) the amount of automatic postretirement adjustment;
new text end

new text begin (14) whether or not service credit is available for military service and any limitation
on its acquisition;
new text end

new text begin (15) the vesting period for a disability benefit and the definition of a disability
qualifying for a disability benefit;
new text end

new text begin (16) investment performance and interest rate actuarial assumptions;
new text end

new text begin (17) the amortization target date;
new text end

new text begin (18) four fiscal years running statistics of active retirement plan members;
new text end

new text begin (19) four fiscal years running statistics of retirement annuitants and retirement
benefit recipients;
new text end

new text begin (20) four fiscal years running statistics of deferred annuitants;
new text end

new text begin (21) four fiscal years running statistics of unfunded actuarial accrued liability
determined on an actuarial value of assets basis and on a market value of assets basis;
new text end

new text begin (22) four fiscal years running statistics of the percentage that assets, at actuarial
value and at market value, represent of the actuarial accrued liability;
new text end

new text begin (23) four fiscal years running statistics of actuarial value of assets; and
new text end

new text begin (24) four fiscal years running statistics of market value of assets.
new text end

new text begin (e) The report under this section also must be included on the Web site of the
department.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 3

MSRS-CORRECTIONAL PLAN MEMBERSHIP CHANGES

Section 1.

Minnesota Statutes 2010, section 352.90, is amended to read:


352.90 POLICY.

It is the policy of the legislature to provide special retirement benefits for and
special contributions by certain correctional employees who may be required to retire at
an early age because they lose the mental or physical capacity required to maintain the
safety, security, discipline, and custody of inmates at state correctional facilities or of
patients at the Minnesota Security Hospital, of patients in the Minnesota sex offender
program, or of patients in the Minnesota deleted text begin extended treatment options programdeleted text end new text begin specialty
health system-Cambridge
new text end .

Sec. 2.

Minnesota Statutes 2010, section 352.91, subdivision 3c, is amended to read:


Subd. 3c.

Nursing personnel.

(a) "Covered correctional service" means service by
a state employee in one of the employment positions at a correctional facility or at the
Minnesota Security Hospital, or in the Minnesota sex offender program that are specified
in paragraph (b) if at least 75 percent of the employee's working time is spent in direct
contact with inmates or patients and the fact of this direct contact is certified to the
executive director by the appropriate commissioner.

(b) The employment positions are as follows:

(1) registered nurse - senior;

(2) registered nurse;

(3) registered nurse - principal;

(4) licensed practical nurse 2; deleted text begin and
deleted text end

(5) registered nurse advance practicenew text begin ; and
new text end

new text begin (6) psychiatric advance practice registered nursenew text end .

new text begin EFFECTIVE DATE. new text end

new text begin (a) This section is effective retroactively from August 22,
2011.
new text end

new text begin (b) Service credit under the correctional state employees retirement plan rather
than under the general state employees retirement plan for the period between August
22, 2011, and the day following enactment is contingent on the state employee and the
Department of Human Services paying the difference between the applicable employee
and employer contributions in the two retirement plans under Minnesota Statutes, section
352.017, subdivision 2.
new text end

Sec. 3.

Minnesota Statutes 2010, section 352.91, subdivision 3d, is amended to read:


Subd. 3d.

Other correctional personnel.

(a) "Covered correctional service" means
service by a state employee in one of the employment positions at a correctional facility or
at the Minnesota Security Hospital specified in paragraph (b) if at least 75 percent of the
employee's working time is spent in direct contact with inmates or patients and the fact of
this direct contact is certified to the executive director by the appropriate commissioner.

(b) The employment positions are:

(1) automotive mechanic;

(2) baker;

(3) central services administrative specialist, intermediate;

(4) central services administrative specialist, principal;

(5) chaplain;

(6) chief cook;

(7) new text begin clinical program therapist 1;
new text end

new text begin (8) clinical program therapist 2;
new text end

new text begin (9) clinical program therapist 3;
new text end

new text begin (10) clinical program therapist 4;
new text end

new text begin (11) new text end cook;

deleted text begin (8)deleted text end new text begin (12) new text end cook coordinator;

deleted text begin (9) corrections program therapist 1;
deleted text end

deleted text begin (10) corrections program therapist 2;
deleted text end

deleted text begin (11) corrections program therapist 3;
deleted text end

deleted text begin (12) corrections program therapist 4;
deleted text end

(13) corrections inmate program coordinator;

(14) corrections transitions program coordinator;

(15) corrections security caseworker;

(16) corrections security caseworker career;

(17) corrections teaching assistant;

(18) delivery van driver;

(19) dentist;

(20) electrician supervisor;

(21) general maintenance worker lead;

(22) general repair worker;

(23) library/information research services specialist;

(24) library/information research services specialist senior;

(25) library technician;

(26) painter lead;

(27) plant maintenance engineer lead;

(28) plumber supervisor;

(29) psychologist 1;

(30) psychologist 3;

(31) recreation therapist;

(32) recreation therapist coordinator;

(33) recreation program assistant;

(34) recreation therapist senior;

(35) sports medicine specialist;

(36) work therapy assistant;

(37) work therapy program coordinator; and

(38) work therapy technician.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2010, section 352.91, subdivision 3e, is amended to read:


Subd. 3e.

Minnesota deleted text begin extended treatment options programdeleted text end new text begin specialty health
system-Cambridge
new text end .

(a) "Covered correctional service" means service by a state employee
in one of the employment positions with the Minnesota deleted text begin extended treatment options
program
deleted text end new text begin specialty health system-Cambridgenew text end specified in paragraph (b) if at least 75
percent of the employee's working time is spent in direct contact with patients who are in
the Minnesota deleted text begin extended treatment options programdeleted text end new text begin specialty health system-Cambridge
new text end and if service in such a position is certified to the executive director by the commissioner
of human services.

(b) The employment positions are:

(1) behavior analyst 1;

(2) behavior analyst 2;

(3) behavior analyst 3;

(4) group supervisor;

(5) group supervisor assistant;

(6) human services support specialist;

(7) residential program lead;

(8) psychologist 2;

(9) recreation program assistant;

(10) recreation therapist senior;

(11) registered nurse senior;

(12) skills development specialist;

(13) social worker senior;

(14) social worker specialist; and

(15) speech pathology specialist.

Sec. 5.

Minnesota Statutes 2010, section 352.91, subdivision 3f, is amended to read:


Subd. 3f.

Additional Department of Human Services personnel.

(a) "Covered
correctional service" means service by a state employee in one of the employment
positions specified in paragraph (b) at the Minnesota Security Hospital or in the Minnesota
sex offender program if at least 75 percent of the employee's working time is spent in
direct contact with patients and the determination of this direct contact is certified to the
executive director by the commissioner of human services.

(b) The employment positions are:

(1) behavior analyst 2;

(2) behavior analyst 3;

(3) certified occupational therapy assistant 1;

(4) certified occupational therapy assistant 2;

(5) chemical dependency counselor senior;

(6) client advocate;

(7) new text begin clinical program therapist 3;
new text end

new text begin (8) clinical program therapist 4;
new text end

new text begin (9) new text end customer services specialist principal;

deleted text begin (8)deleted text end new text begin (10) new text end dental assistant registered;

deleted text begin (9)deleted text end new text begin (11) new text end group supervisor;

deleted text begin (10)deleted text end new text begin (12) new text end group supervisor assistant;

deleted text begin (11)deleted text end new text begin (13) new text end human services support specialist;

deleted text begin (12)deleted text end new text begin (14) new text end licensed alcohol and drug counselor;

deleted text begin (13)deleted text end new text begin (15) new text end licensed practical nurse 1;

deleted text begin (14)deleted text end new text begin (16) new text end management analyst 3;

deleted text begin (15)deleted text end new text begin (17) new text end occupational therapist;

deleted text begin (16)deleted text end new text begin (18) new text end occupational therapist, senior;

deleted text begin (17)deleted text end new text begin (19) new text end psychologist 1;

deleted text begin (18)deleted text end new text begin (20) new text end psychologist 2;

deleted text begin (19)deleted text end new text begin (21) new text end psychologist 3;

deleted text begin (20)deleted text end new text begin (22) new text end recreation program assistant;

deleted text begin (21)deleted text end new text begin (23) new text end recreation therapist lead;

deleted text begin (22)deleted text end new text begin (24) new text end recreation therapist senior;

deleted text begin (23)deleted text end new text begin (25) new text end rehabilitation counselor senior;

deleted text begin (24)deleted text end new text begin (26) new text end security supervisor;

deleted text begin (25)deleted text end new text begin (27) new text end skills development specialist;

deleted text begin (26)deleted text end new text begin (28) new text end social worker senior;

deleted text begin (27)deleted text end new text begin (29) new text end social worker specialist;

deleted text begin (28)deleted text end new text begin (30) new text end social worker specialist, senior;

deleted text begin (29)deleted text end new text begin (31) new text end special education program assistant;

deleted text begin (30)deleted text end new text begin (32) new text end speech pathology clinician;

deleted text begin (31)deleted text end new text begin (33) new text end work therapy assistant; and

deleted text begin (32)deleted text end new text begin (34) new text end work therapy program coordinator.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 4

HEALTH CARE SAVINGS PLAN MODIFICATIONS

Section 1.

Minnesota Statutes 2010, section 352.98, subdivision 3, is amended to read:


Subd. 3.

Contributions.

(a) Contributions to the plan must be defined in a
personnel policy or in a collective bargaining agreement of a public employer or political
subdivision. The executive director may offer different types of trusts permitted under the
Internal Revenue Code to best meet the needs of different employer units.

(b) Contributions to the plan by or on behalf of the participant must be held in trust
for reimbursement of eligible health-related expenses for participants and their dependents
following termination from public employment or deleted text begin during active employmentdeleted text end new text begin in other
circumstances set forth in the plan document
new text end . The executive director shall maintain
a separate account of the contributions made by or on behalf of each participant and
the earnings thereon. The executive director shall make available a limited range of
investment options, and each participant may direct the investment of the accumulations
in the participant's account among the investment options made available by the executive
director.

(c) This section does not obligate a public employer to meet and negotiate in good
faith with the exclusive bargaining representative of any public employee group regarding
an employer contribution to a postretirement or active employee health care savings plan
authorized by this section and section 356.24, subdivision 1, clause (7). It is not the intent
of the legislature to authorize the state to incur new funding obligations for the costs of
retiree health care or the costs of administering retiree health care plans or accounts.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2010, section 352.98, subdivision 4, is amended to read:


Subd. 4.

Reimbursement for health-related expenses.

The executive director
shall reimburse participants at least quarterly for eligible health-related expenses, as
allowable by federal and state law, until the participant exhausts the accumulation in the
participant's account. If a participant dies prior to exhausting the participant's account
balance, the participant's spouse or dependents are eligible to be reimbursed for health care
expenses from the account until the account balance is exhausted. If an account balance
remains after the death of a participant and all of the participant's legal dependents, the
remainder of the account must be paid to the participant's beneficiaries or, if none, to
deleted text begin the participant's estatedeleted text end new text begin a living person or persons named by the personal representative
of the estate. The person or persons named must use the account for reimbursement of
allowable health care expenses
new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2010, section 352.98, subdivision 5, is amended to read:


Subd. 5.

Fees.

The executive director is authorized to charge deleted text begin uniformdeleted text end fees to
participants to cover the ongoing cost of operating the plan.deleted text begin Any fees not needed must
deleted text end deleted text begin revert to participant accounts or be used to reduce plan fees deleted text end deleted text begin the deleted text end deleted text begin following yeardeleted text end deleted text begin .deleted text end new text begin The fees
must be deposited in an administrative fee account. On January 1, following the end of the
prior fiscal year, the executive director shall estimate the amount needed to cover plan
expenses, record keeping costs, and custodial fees for the new fiscal year. If the balance
of the administrative fee account is in excess of this amount, the excess must revert to
participant accounts, or plan fees must be reduced to eliminate the excess, or the executive
director may use a combination of both approaches to eliminate the excess.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2010, section 352.98, subdivision 8, is amended to read:


Subd. 8.

Exemption from process.

Assets in a deleted text begin health-caredeleted text end new text begin health care new text end savings
plan account described in this section must be used for the reimbursement of deleted text begin healthcaredeleted text end
new text begin health care new text end expenses and are not assignable or subject to execution, levy, attachment,
garnishment, or other legal process, except as provided in section 518.58, 518.581, or
518A.53.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 5

MSRS-UNCLASSIFIED RETIREMENT PROGRAM MODIFICATIONS

Section 1.

Minnesota Statutes 2010, section 352D.02, subdivision 3, is amended to
read:


Subd. 3.

Transfer to general employees retirement plan.

(a) new text begin If permitted under
paragraph (b),
new text end an employee referred to in subdivision 1, paragraph (c), clauses (2) to (4),
(6) to (14), and (16) to (18), who is credited with shares in the unclassified programdeleted text begin ,deleted text end and
deleted text begin who deleted text end has credit for allowable servicedeleted text begin , not later than one month following the termination
of covered employment,
deleted text end may elect to terminate participation in the unclassified program
and be covered by the general employees retirement plandeleted text begin by filing a written election
with the executive director
deleted text end new text begin .
new text end

new text begin (b) An employee specified in paragraph (a) is permitted to terminate participation
in the unclassified program and be covered by the general employees retirement plan
new text end if
the employeenew text begin :
new text end

new text begin (1)new text end was employed before July 1, 2010, and has at least ten years of allowable servicedeleted text begin
as of the date of the election
deleted text end new text begin ;new text end or deleted text begin if the employee
deleted text end

new text begin (2)new text end was new text begin first new text end employed after June 30, 2010, and has no more than seven years of
allowable servicedeleted text begin as of the date of the electiondeleted text end .

new text begin The election must be in writing on a form provided by the executive director, and
can be made no later than one month following the termination of covered employment.
new text end

deleted text begin (b)deleted text end new text begin (c) new text end If the transfer election is made, the executive director shall deleted text begin thendeleted text end redeem the
employee's total shares and deleted text begin shalldeleted text end credit to the employee's account in the general employees
retirement plan the amount of contributions that would have been deleted text begin sodeleted text end credited had the
employee been covered by the general employees retirement plan during the employee's
entire covered employmentdeleted text begin or elective state servicedeleted text end . The balance of money deleted text begin sodeleted text end redeemed
and not credited to the employee's account must be transferred to the general employees
retirement plan, except that new text begin the executive director must determine:
new text end

(1) the employee deleted text begin contributiondeleted text end new text begin contributions new text end paid to the unclassified programdeleted text begin must
be compared to
deleted text end new text begin ; and
new text end

(2) the employee contributions that would have been paid to the general employees
retirement plan for the comparable period, if the individual had been covered by that plan.

If clause (1) is greater than clause (2), the difference must be refunded to the
employee as provided in section 352.22. If clause (2) is greater than clause (1), the
difference must be paid by the employee within six months of electing general employees
retirement plan coverage or before the effective date of the annuity, whichever is sooner.

deleted text begin (c)deleted text end new text begin (d) new text end An election under paragraph deleted text begin (a)deleted text end new text begin (b) new text end to transfer coverage to the general
employees retirement plan is irrevocable during any period of covered employment.

deleted text begin (d)deleted text end new text begin (e) new text end A person referenced in subdivision 1, paragraph (c), clause (1), (5), or
(15), who is credited with employee shares in the unclassified program is not permitted
to terminate participation in the unclassified program and be covered by the general
employees retirement plan.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 6

PERA-ADMINISTERED RETIREMENT PLAN MODIFICATIONS

Section 1.

Minnesota Statutes 2011 Supplement, section 353.01, subdivision 16,
is amended to read:


Subd. 16.

Allowable service; limits and computation.

(a) "Allowable service"
means:

(1) service during years of actual membership in the course of which employee
deductions were withheld from salary and contributions were made at the applicable rates
under section 353.27, 353.65, or 353E.03;

(2) periods of service covered by payments in lieu of salary deductions under
sections 353.27, subdivision 12, and 353.35;

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

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

(5) a period of authorized personal, parental, or medical leave of absence without
pay, including a leave of absence covered under the federal Family Medical Leave Act,
that does not exceed one year, and for which a member obtained service credit for each
month in the leave period by payment under section 353.0161 to the fund made in place of
salary deductions. An employee must return to public service and render a minimum of
three months of allowable service in order to be eligible to make payment under section
353.0161 for a subsequent authorized leave of absence without pay. Upon payment, the
employee must be granted allowable service credit for the purchased period;

(6) a periodic, repetitive leave that is offered to all employees of a governmental
subdivision. The leave program may not exceed 208 hours per annual normal work cycle
as certified to the association by the employer. A participating member obtains service
credit by making employee contributions in an amount or amounts based on the member's
average salary, excluding overtime pay, that would have been paid if the leave had not been
taken. The employer shall pay the employer and additional employer contributions on
behalf of the participating member. The employee and the employer are responsible to pay
interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
from the end of the normal cycle until full payment is made. An employer shall also make
the employer and additional employer contributions, plus 8.5 percent interest, compounded
annually, on behalf of an employee who makes employee contributions but terminates
public service. The employee contributions must be made within one year after the end of
the annual normal working cycle or within 30 days after termination of public service,
whichever is sooner. The executive director shall prescribe the manner and forms to be
used by a governmental subdivision in administering a periodic, repetitive leave. Upon
payment, the member must be granted allowable service credit for the purchased period;

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

(8) a period during which a member is absent from employment by a governmental
subdivision by reason of service in the uniformed services, as defined in United States
Code, title 38, section 4303(13), if the member returns to public service with the same
governmental subdivision upon discharge from service in the uniformed service within the
time frames required under United States Code, title 38, section 4312(e), provided that
the member did not separate from uniformed service with a dishonorable or bad conduct
discharge or under other than honorable conditions. The service must be credited if the
member pays into the fund equivalent employee contributions based upon the contribution
rate or rates in effect at the time that the uniformed service was performed multiplied by
the full and fractional years being purchased and applied to the annual salary rate. The
annual salary rate is the average annual salary, excluding overtime pay, during the purchase
period that the member would have received if the member had continued to be employed
in covered employment rather than to provide uniformed service, or, if the determination
of that rate is not reasonably certain, the annual salary rate is the member's average salary
rate, excluding overtime pay, during the 12-month period of covered employment rendered
immediately preceding the period of the uniformed service. Payment of the member
equivalent contributions must be made during a period that begins with the date on which
the individual returns to public employment and that is three times the length of the
military leave period, or within five years of the date of discharge from the military service,
whichever is less. If the determined payment period is less than one year, the contributions
required under this clause to receive service credit may be made within one year of the
discharge date. Payment may not be accepted following 30 days after termination of
public service under subdivision 11a. If the member equivalent contributions provided for
in this clause are not paid in full, the member's allowable service credit must be prorated
by multiplying the full and fractional number of years of uniformed service eligible for
purchase by the ratio obtained by dividing the total member contributions received by the
total member contributions otherwise required under this clause. The equivalent employer
contribution, and, if applicable, the equivalent additional employer contribution must be
paid by the governmental subdivision employing the member if the member makes the
equivalent employee contributions. The employer payments must be made from funds
available to the employing unit, using the employer and additional employer contribution
rate or rates in effect at the time that the uniformed service was performed, applied to the
same annual salary rate or rates used to compute the equivalent member contribution. The
governmental subdivision involved may appropriate money for those payments. The
amount of service credit obtainable under this section may not exceed five years unless a
longer purchase period is required under United States Code, title 38, section 4312. The
employing unit shall pay interest on all equivalent member and employer contribution
amounts payable under this clause. Interest must be computed at a rate of 8.5 percent
compounded annually from the end of each fiscal year of the leave or the break in service
to the end of the month in which the payment is received. Upon payment, the employee
must be granted allowable service credit for the purchased period; or

(9) a period specified under deleted text begin subdivision 40deleted text end new text begin section 353.0162new text end .

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

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

(d) No member may receive more than 12 months of allowable service credit in a
year either for vesting purposes or for benefit calculation purposes. For an active member
who was an active member of the former Minneapolis Firefighters Relief Association on
the day prior to the effective date of consolidation under Laws 2011, First Special Session
chapter 8, article 6, section 19, "allowable service" is the period of service credited by
the Minneapolis Firefighters Relief Association as reflected in the transferred records of
the association up to the effective date of consolidation under Laws 2011, First Special
Session chapter 8, article 6, section 19, and the period of service credited under paragraph
(a), clause (1), after the effective date of consolidation under Laws 2011, First Special
Session chapter 8, article 6, section 19. For an active member who was an active member
of the former Minneapolis Police Relief Association on the day prior to the effective date
of consolidation under Laws 2011, First Special Session chapter 8, article 7, section 19,
"allowable service" is the period of service credited by the Minneapolis Police Relief
Association as reflected in the transferred records of the association up to the effective date
of consolidation under Laws 2011, First Special Session chapter 8, article 7, section 19,
and the period of service credited under paragraph (a), clause (1), after the effective date
of consolidation under Laws 2011, First Special Session chapter 8, article 7, section 19.

(e) MS 2002 [Expired]

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2010, section 353.01, subdivision 47, is amended to read:


Subd. 47.

Vesting.

(a) "Vesting" means obtaining a nonforfeitable entitlement
to an annuity or benefit from a retirement plan administered by the Public Employees
Retirement Association by having credit for sufficient allowable service under paragraph
(b) or (c), whichever applies.

(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan
member of the general employees retirement plan of the Public Employees Retirement
Association:

(1) a deleted text begin memberdeleted text end new text begin public employee new text end who first became a deleted text begin public employeedeleted text end new text begin member new text end before
July 1, 2010, is vested when the person has accrued credit for not less than three years
of allowable service as defined under subdivision 16; and

(2) a deleted text begin memberdeleted text end new text begin public employee new text end who first becomes a deleted text begin public employeedeleted text end new text begin member new text end after
June 30, 2010, is vested when the person has accrued credit for not less than five years of
allowable service as defined under subdivision 16.

(c) For purposes of qualifying for an annuity or benefit as a member of the police
and fire plan or a member of the local government correctional employees retirement plan:

(1) a deleted text begin memberdeleted text end new text begin public employee new text end who first became a deleted text begin public employeedeleted text end new text begin member new text end before
July 1, 2010, is vested when the person has accrued credit for not less than three years
of allowable service as defined under subdivision 16; and

(2) a deleted text begin memberdeleted text end new text begin public employee new text end who first becomes a deleted text begin public employeedeleted text end new text begin member new text end after
June 30, 2010, is vested at the following percentages when the person has accrued credited
allowable service as defined under subdivision 16, as follows:

(i) 50 percent after five years;

(ii) 60 percent after six years;

(iii) 70 percent after seven years;

(iv) 80 percent after eight years;

(v) 90 percent after nine years; and

(vi) 100 percent after ten years.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2010, section 353.50, subdivision 7, is amended to read:


Subd. 7.

MERF division account contributions.

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

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

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

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

(e) Annually after June 30, 2012, the employer supplemental contribution to
the MERF division account by the city of Minneapolis, Special School District No. 1,
Minneapolis, a Minneapolis-owned public utility, improvement, or municipal activity,
Hennepin county, the Metropolitan Council, the Metropolitan Airports Commission, and
the Minnesota State Colleges and Universities system is the larger of the following:

(1) the amount by which the total actuarial required contribution determined under
section 356.215 by the approved actuary retained by the Public Employees Retirement
Association in the most recent actuarial valuation of the MERF division and based on a
June 30, 2031, amortization date, after subtracting the contributions under paragraphs (b),
(c), and (d), exceeds $22,750,000 or $24,000,000, whichever applies; or

(2) the amount of $27,000,000, but the total supplemental contribution amount
plus the contributions under paragraphs (c) and (d) may not exceed $34,000,000. Each
employing unit's share of the total employer supplemental contribution amount is equal to
the applicable portion specified in paragraph deleted text begin (g)deleted text end new text begin (h)new text end . The initial total actuarial required
contribution after June 30, 2012, must be calculated using the mortality assumption
change recommended on September 30, 2009, for the Minneapolis Employees Retirement
Fund by the approved consulting actuary retained by the Minneapolis Employees
Retirement Fund board.

new text begin (f) Before January 31, each employing unit must be invoiced for its share of the
total employer supplemental contribution amount under paragraph (e). The amount is
payable by the employing unit in two parts. The first half of the amount due is payable
on or before the July 31 following the date of the invoice, and the second half of the
amount due is payable on or before December 15. Each invoice must be based on the
actuarial valuation report prepared under section 356.215 and the standards for actuarial
work promulgated by the Legislative Commission on Pensions and Retirement as of the
valuation date occurring 18 months earlier.
new text end

deleted text begin (f)deleted text end new text begin (g)new text end Notwithstanding any provision of paragraph (c), (d), or (e) to the contrary, as
of August 1 annually, if the amount of the retirement annuities and benefits paid from the
MERF division account during the preceding fiscal year, multiplied by the factor of 1.035,
exceeds the market value of the assets of the MERF division account on the preceding
June 30, plus state aid of $9,000,000, $22,750,000, or $24,000,000, whichever applies,
plus the amounts payable under paragraphs (b), (c), (d), and (e) during the preceding
fiscal year, multiplied by the factor of 1.035, the balance calculated is a special additional
employer contribution. The special additional employer contribution under this paragraph
is payable in addition to any employer contribution required under paragraphs (c), (d), and
(e), and is payable on or before the following June 30. The special additional employer
contribution under this paragraph must be allocated as specified in paragraph deleted text begin (g)deleted text end new text begin (h)new text end .

deleted text begin (g)deleted text end new text begin (h)new text end The employer supplemental contribution under paragraph (e) or the special
additional employer contribution under paragraph deleted text begin (f)deleted text end new text begin (g) new text end must be allocated between the
city of Minneapolis, Special School District No. 1, Minneapolis, any Minneapolis-owned
public utility, improvement, or municipal activity, the Minnesota State Colleges and
Universities system, Hennepin County, the Metropolitan Council, and the Metropolitan
Airports Commission in proportion to their share of the actuarial accrued liability of the
former Minneapolis Employees Retirement Fund as of July 1, 2009, as calculated by the
approved actuary retained under section 356.214 as part of the actuarial valuation prepared
as of July 1, 2009, under section 356.215 and the Standards for Actuarial Work adopted by
the Legislative Commission on Pensions and Retirement.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2010, section 353.656, subdivision 2, is amended to read:


Subd. 2.

Benefits paid under workers' compensation law.

(a) If a memberdeleted text begin , as
described in subdivision 1, is injured under circumstances which entitle the member to
receive benefits under the
deleted text end new text begin becomes disabled and receives a disability benefit as specified
in this section and is also entitled to receive lump sum or periodic benefits under
new text end workers'
compensation deleted text begin law, the member shall receive the same benefits as provided in subdivision
1, with disability benefits paid reimbursed and future benefits reduced by all periodic or
lump-sum amounts, other than those amounts excluded under paragraph (b), paid to the
member under the workers' compensation law, after deduction of amount of attorney fees,
authorized under applicable workers' compensation laws, paid by a disabilitant if the total
of
deleted text end new text begin laws, new text end the single life annuity actuarial equivalent disability benefit new text begin amount new text end and the
workers' compensation deleted text begin benefit exceeds:deleted text end new text begin amount must be added. The computation must
exclude any attorney fees paid by the disabilitant as authorized under applicable workers'
compensation laws. The computation must also exclude permanent partial disability
payments provided under section 176.101, subdivision 2a, and retraining payments under
section 176.102, subdivision 11, if the permanent partial disability or retraining payments
are reported to the executive director in a manner specified by the executive director.
new text end

new text begin (b) The equivalent salary is the amount determined under clause (1) or (2),
whichever is greater:
new text end

(1) the salary the disabled member received as of the date of the disabilitynew text begin ;new text end or

(2) the salary currently payable for the same employment position or deleted text begin an employment
position
deleted text end substantially similar deleted text begin to the one the person held as of the date of the disability,
whichever is greater. The disability benefit must be reduced to that amount which, when
added to the workers' compensation benefits, does not exceed the greater of the salaries
described in clauses (1) and (2)
deleted text end new text begin positions in the applicable government subdivisionnew text end .

deleted text begin (b) Permanent partial disability payments provided for in section 176.101,
subdivision 2a, and retraining payments provided for in section 176.102, subdivision 11,
must not be offset from disability payments due under paragraph (a) if the amounts of
the permanent partial or retraining payments are reported to the executive director in a
manner specified by the executive director.
deleted text end

new text begin (c) If the amount determined under paragraph (a) exceeds the equivalent salary
determined under paragraph (b), the disability benefit amount must be reduced to that
amount which, when added to the workers' compensation benefits, equals the equivalent
salary.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin PERA-ADMINISTERED RETIREMENT PLANS; STUDY OF
UPDATED MEMBERSHIP WAGE THRESHOLD FIGURE.
new text end

new text begin (a) The Public Employees Retirement Association shall: (1) identify the options
for revising the membership threshold salary under Minnesota Statutes, section 353.01,
subdivisions 2a and 2b, for membership in a retirement plan administered by the
association; (2) determine the actuarial impact on the retirement plans administered by the
association, the financial impact on participating employers, and the financial impact on
prospective public employees of each option; and (3) formulate the recommendations for
structuring each identified option.
new text end

new text begin (b) The Public Employees Retirement Association shall report its findings and
recommendations of its study to the chair, the vice chair, and the executive director of the
Legislative Commission on Pensions and Retirement. The report must be filed with the
commission on or before February 15, 2013.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 7

REVISIONS IN THE PERA PRIVATIZATION LAW

Section 1.

Minnesota Statutes 2010, section 353F.02, subdivision 4, is amended to read:


Subd. 4.

Medical facility.

"Medical facility" means:

(1) Bridges Medical Services;

new text begin (2) Cedarview Care Center in Steele County;
new text end

deleted text begin (2)deleted text end new text begin (3) new text end the City of Cannon Falls Hospital;

deleted text begin (3)deleted text end new text begin (4) new text end the Chris Jenson Health and Rehabilitation Center in St. Louis County;

deleted text begin (4)deleted text end new text begin (5) new text end Clearwater County Memorial Hospital doing business as Clearwater Health
Services in Bagley;

deleted text begin (5)deleted text end new text begin (6) new text end the Dassel Lakeside Community Home;

deleted text begin (6)deleted text end new text begin (7) new text end the Douglas County Hospital, with respect to the Mental Health Unit;

deleted text begin (7)deleted text end new text begin (8) new text end the Fair Oaks Lodge, Wadena;

deleted text begin (8)deleted text end new text begin (9) new text end the Glencoe Area Health Center;

deleted text begin (9)deleted text end new text begin (10) new text end Hutchinson Area Health Care;

deleted text begin (10)deleted text end new text begin (11) new text end the Lakefield Nursing Home;

deleted text begin (11)deleted text end new text begin (12) new text end the Lakeview Nursing Home in Gaylord;

deleted text begin (12)deleted text end new text begin (13) new text end the Luverne Public Hospital;

deleted text begin (13)deleted text end new text begin (14) new text end the Oakland Park Nursing Home;

deleted text begin (14)deleted text end new text begin (15) new text end the RenVilla Nursing Home;

deleted text begin (15)deleted text end new text begin (16) new text end the Rice Memorial Hospital in Willmar, with respect to the Department
of Radiology and the Department of Radiation/Oncology;

deleted text begin (16)deleted text end new text begin (17) new text end the St. Peter Community Health Care Center;

new text begin (18) the Traverse Care Center in Traverse County;
new text end

deleted text begin (17)deleted text end new text begin (19) new text end the Waconia-Ridgeview Medical Center;

deleted text begin (18)deleted text end new text begin (20) new text end the Weiner Memorial Medical Center, Inc.;

deleted text begin (19)deleted text end new text begin (21) new text end the Wheaton Community Hospital; and

deleted text begin (20)deleted text end new text begin (22) new text end the Worthington Regional Hospital.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2010, section 353F.04, subdivision 1, is amended to read:


Subdivision 1.

Enhanced augmentation rates.

(a) The deferred annuity of
a terminated medical facility or other public employing unit employee is subject
to augmentation under section 353.71, subdivision 2, of the edition of Minnesota
Statutes published in the year in which the privatization occurred, except that the rate
of augmentation is as specified in deleted text begin paragraph (b) or (c), whichever is applicabledeleted text end new text begin this
subdivision
new text end .

(b) This paragraph applies if the legislation adding the medical facility or other
employing unit to section 353F.02, subdivision 4 or 5, as applicable, was enacted before
July 26, 2005, and became effective before January 1, 2008, for the Hutchinson Area
Health Care or before January 1, 2007, for all other medical facilities and all other
employing units. For a terminated medical facility or other public employing unit
employee, the augmentation rate is 5.5 percent compounded annually until January 1
following the year in which the person attains age 55. From that date to the effective date
of retirement, the augmentation rate is 7.5 percent compounded annually.

(c) If paragraph (b) is not applicable, new text begin and if the effective date of the privatization is
before January 1, 2011,
new text end the augmentation rate is four percent compounded annually until
January 1, following the year in which the person attains age 55. From that date to the
effective date of retirement, the augmentation rate is six percent compounded annually.

new text begin (d) If the effective date of the privatization is after December 31, 2010, the
applicable augmentation rate depends on the result of computations specified in section
353F.025, subdivision 1. If those computations indicate no loss or a net gain to the fund of
the general employees retirement plan of the Public Employees Retirement Association,
the augmentation rate is 2.0 percent compounded annually until the effective date of
retirement. If the computations under that subdivision indicate a net loss to the fund if
a 2.0 percent augmentation rate is used, but a net gain or no loss if a 1.0 percent rate is
used, then the augmentation rate is 1.0 percent compounded annually until the effective
date of retirement.
new text end

new text begin (e) The term "effective date of the privatization" as used in this subdivision means
the "effective date" as defined in section 353F.02, subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2010, section 353F.07, is amended to read:


353F.07 EFFECT ON REFUND.

Notwithstanding any provision of chapter 353 to the contrary, terminated medical
facility or other public employing unit employees may receive a refund of employee
accumulated contributions plus interest deleted text begin at the rate of six percent per year compounded
annually
deleted text end new text begin as provided new text end in deleted text begin accordance withdeleted text end section 353.34, subdivision 2, deleted text begin of the edition
of Minnesota Statutes published in the year in which the privatization occurred,
deleted text end at any
time after the transfer of employment to the successor employer deleted text begin todeleted text end new text begin of new text end the new text begin terminated
new text end medical facility or other public employing unit. If a terminated medical facility new text begin or other
public employing unit
new text end employee has received a refund from a pension plan deleted text begin enumerateddeleted text end
new text begin listed new text end in section 356.30, subdivision 3, the person may not repay that refund unless the
person again becomes a member of one of those deleted text begin enumerateddeleted text end new text begin listed new text end plans and complies
with section 356.30, subdivision 2.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 8

TRA ADMINISTRATIVE CHANGES AND RELATED MODIFICATIONS

Section 1.

Minnesota Statutes 2010, section 16A.06, subdivision 9, is amended to read:


Subd. 9.

First class city teacher retirement funds aids reporting.

Each year,
on or before April 15, the commissioner of management and budget shall report to the
chairs of the senate Finance Committee and the house of representatives Ways and Means
Committee on expenditures for state aids to the deleted text begin Minneapolis and Saintdeleted text end new text begin St. new text end Paul Teacher
Retirement Fund deleted text begin associationsdeleted text end new text begin Association, and to the Teachers Retirement Association on
behalf of the merged Minneapolis Teachers Retirement Fund Association,
new text end under sections
new text begin 354.435, new text end 354A.12new text begin ,new text end and 423A.02, subdivision 3. This report shall include the amounts
expended in the most recent fiscal year and estimates of expected expenditures for the
current and next fiscal year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2010, section 126C.41, subdivision 3, is amended to read:


Subd. 3.

Retirement levies.

(a) In 1991 and each year thereafter, a district to which
this subdivision applies may levy an additional amount required for contributions to
the general employees retirement plan of the Public Employees Retirement Association
as the successor of the Minneapolis Employees Retirement Fund as a result of the
maximum dollar amount limitation on state contributions to that plan imposed under
section 353.505. The additional levy must not exceed the most recent amount certified by
the executive director of the Public Employees Retirement Association as the district's
share of the contribution requirement in excess of the maximum state contribution under
section 353.505.

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

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

(d) In addition to the levy authorized under paragraph (c), Special School District
No. 1, Minneapolis, may also levy payable in 1997 or later an amount equal to the
contributions under section deleted text begin 423A.02deleted text end new text begin 354.435new text end , subdivision deleted text begin 3deleted text end new text begin 2new text end , and may also levy in
payable 1994 or later an amount equal to the state aid contribution under section deleted text begin 354A.12deleted text end new text begin
354.435
new text end , subdivision deleted text begin 3bdeleted text end new text begin 1new text end
. Independent School District No. 625, St. Paul, may levy
payable in 1997 or later an amount equal to the supplemental contributions under section
423A.02, subdivision 3.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin [354.435] ADDITIONAL CONTRIBUTIONS BY SPECIAL SCHOOL
DISTRICT NO. 1 AND CITY OF MINNEAPOLIS.
new text end

new text begin Subdivision 1. new text end

new text begin Special direct state matching aid. new text end

new text begin (a) Special School District No. 1,
Minneapolis, and the city of Minneapolis must make additional employer contributions
to the Teachers Retirement Association in the amounts specified in paragraph (b). These
contributions can be made from any available source. If made in whole or in part by a
levy, the levy may be classified as that of a special taxing district for purposes of sections
275.065 and 276.04, and for all other property tax purposes.
new text end

new text begin (b) Each fiscal year $1,250,000 must be contributed by Special School District
No. 1, Minneapolis, and $1,250,000 must be contributed by the city of Minneapolis to
the Teachers Retirement Association and the state shall match this total by paying to
the Teachers Retirement Association $2,500,000. The superintendent of Special School
District No. 1, Minneapolis, the mayor of the city of Minneapolis, and the executive
director of the Teachers Retirement Association shall jointly certify to the commissioner
of management and budget the total amount that has been contributed by Special School
District No. 1, Minneapolis, and by the city of Minneapolis to the Teachers Retirement
Association. Any certification to the commissioner of management and budget must
be made quarterly. If the certifications for a fiscal year exceed the maximum annual
direct state matching aid amount in any quarter, the amount of direct state matching aid
payable to the Teachers Retirement Association must be limited to the balance of the
maximum annual direct state matching aid amount available. The amount required under
this paragraph, subject to the maximum direct state matching aid amount, is appropriated
annually to the commissioner of management and budget.
new text end

new text begin (c) The commissioner of management and budget may prescribe the form of the
certifications required under paragraph (b).
new text end

new text begin Subd. 2. new text end

new text begin Additional contributions. new text end

new text begin In addition to any other required contributions,
on or before June 30 each fiscal year, Special School District No. 1, Minneapolis, and the
city of Minneapolis must each make an additional contribution to the Teachers Retirement
Association of $1,000,000.
new text end

new text begin Subd. 3. new text end

new text begin Procedure for recovery of deficient or delinquent amounts. new text end

new text begin If Special
School District No. 1, Minneapolis, or the city of Minneapolis fails to pay the full amount
required under subdivision 1, paragraph (b), or 2, in a timely manner, the executive
director is authorized to use section 354.512, or any other process in law to ensure full
payment is obtained.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This section expires effective the first day of the fiscal year
next following the fiscal year in which the Teachers Retirement Association has no
unfunded actuarial accrued liability as determined by the actuarial valuation prepared
under section 356.215 by the approved actuary retained under section 356.214.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2010, section 354.51, subdivision 5, is amended to read:


Subd. 5.

Payment of shortages.

(a) Except as provided in paragraph (b), in the
event that full required member contributions are not deducted from the salary of a
teacher, payment must be made as follows:

(1) Payment of shortages in member deductions on salary earned after June 30,
1957, and before July 1, 1981, may be made any time before retirement. Payment must
include interest at an annual rate of 8.5 percent compounded annually from the end of the
fiscal year in which the shortage occurred to the end of the month in which payment is
made and the interest must be credited to the fund. If payment of a shortage in deductions
is not made, the formula service credit of the member must be prorated under section
354.05, subdivision 25, clause (3).

(2) Payment of shortages in member deductions on salary earned after June 30,
1981, are the sole obligation of the employing unit and are payable by the employing
unit upon notification by the executive director of the shortage with interest at an annual
rate of 8.5 percent compounded annually from the end of the fiscal year in which the
shortage occurred to the end of the month in which payment is made and the interest
must be credited to the fund. Effective July 1, 1986, the employing unit shall also pay
the employer contributions as specified in section 354.42, subdivisions 3 and 5 for the
shortages. If the shortage payment is not paid by the employing unit within 60 days of
notification, new text begin and if the executive director does not use the recovery procedure in section
354.512,
new text end the executive director shall certify the amount of the shortage deleted text begin paymentdeleted text end to the
applicable county auditor, who shall spread a levy in the amount of the shortage payment
over the taxable property of the taxing district of the employing unit if the employing unit
is supported by property taxesdeleted text begin , or to the commissioner of management and budget, who
shall deduct the amount from any state aid or appropriation amount applicable to the
employing unit if the employing unit is not supported by property taxes
deleted text end .

(3) Payment may not be made for shortages in member deductions on salary earned
before July 1, 1957, for shortages in member deductions on salary paid or payable under
paragraph (b), or for shortages in member deductions for persons employed by the
Minnesota State Colleges and Universities system in a faculty position or in an eligible
unclassified administrative position and whose employment was less than 25 percent
of a full academic year, exclusive of the summer session, for the applicable institution
that exceeds the most recent 36 months.

(b) For a person who is employed by the Minnesota State Colleges and Universities
system in a faculty position or in an eligible unclassified administrative position and
whose employment was less than 25 percent of a full academic year, exclusive of the
summer session, for the applicable institution, upon the person's election under section
354B.21 of retirement coverage under this chapter, the shortage in member deductions
on the salary for employment by the Minnesota State Colleges and Universities system
institution of less than 25 percent of a full academic year, exclusive of the summer session,
for the applicable institution for the most recent 36 months and the associated employer
contributions must be paid by the Minnesota State Colleges and Universities system
institution, plus annual compound interest at the rate of 8.5 percent from the end of the
fiscal year in which the shortage occurred to the end of the month in which the Teachers
Retirement Association coverage election is made. deleted text begin If the shortage payment is not made by
the institution within 60 days of notification, the executive director shall certify the amount
of the shortage payment to the commissioner of management and budget, who shall deduct
the amount from any state appropriation to the system.
deleted text end An individual electing coverage
under this paragraph shall repay the amount of the shortage in member deductions, plus
interest, through deduction from salary or compensation payments within the first year of
employment after the election under section 354B.21, subject to the limitations in section
16D.16. The Minnesota State Colleges and Universities system may use any means
available to recover amounts which were not recovered through deductions from salary or
compensation payments. No payment of the shortage in member deductions under this
paragraph may be made for a period longer than the most recent 36 months.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

new text begin [354.512] RECOVERY OF DEFICIENCIES.
new text end

new text begin In addition to any other remedies permitted under law, if an employing unit or
other entity required by law to make any form of payment to the Teachers Retirement
Association fails to make full payment within 60 days of notification, the executive
director is authorized to certify the amount of deficiency to the commissioner of
management and budget, who shall deduct the amount from any state aid or appropriation
applicable to the employing unit or entity, and transmit the withheld aid or appropriation
to the executive director for deposit in the fund.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2010, section 354A.12, subdivision 3c, is amended to read:


Subd. 3c.

Termination of supplemental contributions and direct matching and
state aid.

deleted text begin The supplemental contributions payable to the Minneapolis Teachers Retirement
Fund Association by Special School District No. 1 and the city of Minneapolis under
section 423A.02, subdivision 3, must be paid to the Teachers Retirement Association and
must continue until the current assets of the fund equal or exceed the actuarial accrued
liability of the fund as determined in the most recent actuarial report for the fund by
the actuary retained under section 356.214, or 2037, whichever occurs earlier.
deleted text end The
supplemental contributions payable to the St. Paul Teachers Retirement Fund Association
by Independent School District No. 625 under section 423A.02, subdivision 3, or the
direct state aid under subdivision 3a to the St. Paul Teachers Retirement Fund Association
must continue until the current assets of the fund equal or exceed the actuarial accrued
liability of the fund as determined in the most recent actuarial report for the fund by the
actuary retained under section 356.214 or until 2037, whichever occurs earlier.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2011 Supplement, section 356.215, subdivision 8, is
amended to read:


Subd. 8.

Interest and salary assumptions.

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

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

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

(1) single rate future salary increase assumption

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

(2) age-related select and ultimate future salary increase assumption or graded rate
future salary increase assumption

plan
future salary increase assumption
correctional state employees retirement plan
assumption D
State Patrol retirement plan
assumption C
local government correctional service retirement plan
assumption C
Duluth teachers retirement plan
assumption A
St. Paul teachers retirement plan
assumption B

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

The ultimate future salary increase assumption is:

age
A
B
C
D
16
8.00%
6.90%
7.7500%
7.2500%
17
8.00
6.90
7.7500
7.2500
18
8.00
6.90
7.7500
7.2500
19
8.00
6.90
7.7500
7.2500
20
6.90
6.90
7.7500
7.2500
21
6.90
6.90
7.1454
6.6454
22
6.90
6.90
7.0725
6.5725
23
6.85
6.85
7.0544
6.5544
24
6.80
6.80
7.0363
6.5363
25
6.75
6.75
7.0000
6.5000
26
6.70
6.70
7.0000
6.5000
27
6.65
6.65
7.0000
6.5000
28
6.60
6.60
7.0000
6.5000
29
6.55
6.55
7.0000
6.5000
30
6.50
6.50
7.0000
6.5000
31
6.45
6.45
7.0000
6.5000
32
6.40
6.40
7.0000
6.5000
33
6.35
6.35
7.0000
6.5000
34
6.30
6.30
7.0000
6.5000
35
6.25
6.25
7.0000
6.5000
36
6.20
6.20
6.9019
6.4019
37
6.15
6.15
6.8074
6.3074
38
6.10
6.10
6.7125
6.2125
39
6.05
6.05
6.6054
6.1054
40
6.00
6.00
6.5000
6.0000
41
5.90
5.95
6.3540
5.8540
42
5.80
5.90
6.2087
5.7087
43
5.70
5.85
6.0622
5.5622
44
5.60
5.80
5.9048
5.4078
45
5.50
5.75
5.7500
5.2500
46
5.40
5.70
5.6940
5.1940
47
5.30
5.65
5.6375
5.1375
48
5.20
5.60
5.5822
5.0822
49
5.10
5.55
5.5404
5.0404
50
5.00
5.50
5.5000
5.0000
51
4.90
5.45
5.4384
4.9384
52
4.80
5.40
5.3776
4.8776
53
4.70
5.35
5.3167
4.8167
54
4.60
5.30
5.2826
4.7826
55
4.50
5.25
5.2500
4.7500
56
4.40
5.20
5.2500
4.7500
57
4.30
5.15
5.2500
4.7500
58
4.20
5.10
5.2500
4.7500
59
4.10
5.05
5.2500
4.7500
60
4.00
5.00
5.2500
4.7500
61
3.90
5.00
5.2500
4.7500
62
3.80
5.00
5.2500
4.7500
63
3.70
5.00
5.2500
4.7500
64
3.60
5.00
5.2500
4.7500
65
3.50
5.00
5.2500
4.7500
66
3.50
5.00
5.2500
4.7500
67
3.50
5.00
5.2500
4.7500
68
3.50
5.00
5.2500
4.7500
69
3.50
5.00
5.2500
4.7500
70
3.50
5.00
5.2500
4.7500

(3) service-related ultimate future salary increase assumption

general state employees retirement plan of the
Minnesota State Retirement System
assumption A
general employees retirement plan of the Public
Employees Retirement Association
assumption B
Teachers Retirement Association
assumption C
public employees police and fire retirement plan
assumption D
service
length
A
B
C
D
1
10.75%
12.25%
12.00%
13.00%
2
8.35
9.15
9.00
11.00
3
7.15
7.75
8.00
9.00
4
6.45
6.85
7.50
8.00
5
5.95
6.25
7.25
6.50
6
5.55
5.75
7.00
6.10
7
5.25
5.45
6.85
5.80
8
4.95
5.15
6.70
5.60
9
4.75
4.85
6.55
5.40
10
4.65
4.65
6.40
5.30
11
4.45
4.45
6.25
5.20
12
4.35
4.35
6.00
5.10
13
4.25
4.15
5.75
5.00
14
4.05
4.05
5.50
4.90
15
3.95
3.95
5.25
4.80
16
3.85
3.85
5.00
4.80
17
3.75
3.75
4.75
4.80
18
3.75
3.75
4.50
4.80
19
3.75
3.75
4.25
4.80
20
3.75
3.75
4.00
4.80
21
3.75
3.75
3.90
4.70
22
3.75
3.75
3.80
4.60
23
3.75
3.75
3.70
4.50
24
3.75
3.75
3.60
4.50
25
3.75
3.75
3.50
4.50
26
3.75
3.75
3.50
4.50
27
3.75
3.75
3.50
4.50
28
3.75
3.75
3.50
4.50
29
3.75
3.75
3.50
4.50
30 or more
3.75
3.75
3.50
4.50

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

plan
payroll growth assumption
general state employees retirement plan of the
Minnesota State Retirement System
3.75%
correctional state employees retirement plan
4.50
State Patrol retirement plan
4.50
legislators retirement plan
4.50
judges retirement plan
4.00
general employees retirement plan of the Public
Employees Retirement Association
3.75
public employees police and fire retirement plan
3.75
local government correctional service retirement plan
4.50
teachers retirement plan
3.75
Duluth teachers retirement plan
4.50
St. Paul teachers retirement plan
5.00

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2010, section 356.415, subdivision 1d, is amended to read:


Subd. 1d.

Teachers Retirement Association annual postretirement adjustments.

(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers
Retirement Association are entitled to a postretirement adjustment annually on January
1, as follows:

(1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;

(2) for January 1, 2013, and each successive January 1 until funding stability is
restored, a postretirement increase of two percent must be applied each year, effective
on January 1, to the monthly annuity or benefit amount of each annuitant or benefit
recipient who has been receiving an annuity or a benefit for at least 18 full months prior
to the January 1 increase;

(3) for January 1, 2013, and each successive January 1 until funding stability is
restored, for each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least six full monthsnew text begin before the January 1 increasenew text end , an annual postretirement
increase of 1/12 of two percent for each month the person has been receiving an annuity or
benefit must be applied, effective January 1, deleted text begin following the year indeleted text end new text begin for new text end which the person has
been retired for new text begin at least six months but new text end less than deleted text begin 12deleted text end new text begin 18 new text end months;

(4) for each January 1 following the restoration of funding stability, a postretirement
increase of 2.5 percent must be applied each year, effective January 1, to the monthly
annuity or benefit amount of each annuitant or benefit recipient who has been receiving an
annuity or a benefit for at least 18 full months prior to the January 1 increase; and

(5) for each January 1 following the restoration of funding stability, for each
annuitant or benefit recipient who has been receiving an annuity or a benefit for at least six
full monthsnew text begin before the January 1 increasenew text end , an annual postretirement increase of 1/12 of
2.5 percent for each month the person has been receiving an annuity or benefit must be
applied, effective January 1, deleted text begin following the year indeleted text end new text begin for new text end which the person has been retired
for new text begin at least six months but new text end less than deleted text begin 12deleted text end new text begin 18 new text end months.

(b) Funding stability is restored when the market value of assets of the Teachers
Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities of
the Teachers Retirement Association in the most recent prior actuarial valuation prepared
under section 356.215 and the standards for actuarial work by the approved actuary
retained by the Teachers Retirement Association under section 356.214.

(c) An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Teachers Retirement Association requesting that the increase
not be made.

(d) The retirement annuity payable to a person who retires before becoming eligible
for Social Security benefits and who has elected the optional payment as provided in
section 354.35 must be treated as the sum of a period-certain retirement annuity and a life
retirement annuity for the purposes of any postretirement adjustment. The period-certain
retirement annuity plus the life retirement annuity must be the annuity amount payable
until age 62, 65, or normal retirement age, as selected by the member at retirement, for an
annuity amount payable under section 354.35. A postretirement adjustment granted on
the period-certain retirement annuity must terminate when the period-certain retirement
annuity terminates.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2010, section 423A.02, subdivision 3, is amended to read:


Subd. 3.

Reallocation of amortization or supplementary amortization state
aid.

(a) Seventy percent of the difference between $5,720,000 and the current year
amortization aid and supplemental amortization aid distributed under subdivisions 1
and 1a that is not distributed for any reason to a municipality for use by a local police
or salaried fire relief association must be distributed by the commissioner of revenue
according to this paragraph. The commissioner shall distribute 50 percent of the amounts
derived under this paragraph to the Teachers Retirement Association, ten percent to the
Duluth Teachers Retirement Fund Association, and 40 percent to the St. Paul Teachers
Retirement Fund Association to fund the unfunded actuarial accrued liabilities of the
respective funds. These payments shall be made on or before June 30 each fiscal year. If
the St. Paul Teachers Retirement Fund Association becomes fully funded, its eligibility
for this aid ceases. Amounts remaining in the undistributed balance account at the end of
the biennium if aid eligibility ceases cancel to the general fund.

(b) In order to receive amortization and supplementary amortization aid under
paragraph (a), new text begin prior to June 30 new text end Independent School District No. 625, St. Paul, must make
deleted text begin contributionsdeleted text end new text begin an additional contribution of $800,000 each year new text end to the St. Paul Teachers
Retirement Fund Associationdeleted text begin in accordance with the following schedule:deleted text end new text begin .
new text end

deleted text begin Fiscal Year
deleted text end
deleted text begin Amount
deleted text end
deleted text begin 1996
deleted text end
deleted text begin $
deleted text end
deleted text begin 0
deleted text end
deleted text begin 1997
deleted text end
deleted text begin $
deleted text end
deleted text begin 0
deleted text end
deleted text begin 1998
deleted text end
deleted text begin $
deleted text end
deleted text begin 200,000
deleted text end
deleted text begin 1999
deleted text end
deleted text begin $
deleted text end
deleted text begin 400,000
deleted text end
deleted text begin 2000
deleted text end
deleted text begin $
deleted text end
deleted text begin 600,000
deleted text end
deleted text begin 2001 and thereafter
deleted text end
deleted text begin $
deleted text end
deleted text begin 800,000
deleted text end

deleted text begin (c) Special School District No. 1, Minneapolis, and the city of Minneapolis must
each make contributions to the Teachers Retirement Association in accordance with the
following schedule:
deleted text end

deleted text begin Fiscal Year
deleted text end
deleted text begin City amount
deleted text end
deleted text begin School district
amount
deleted text end
deleted text begin 1996
deleted text end
deleted text begin $
deleted text end
deleted text begin 0
deleted text end
deleted text begin $
deleted text end
deleted text begin 0
deleted text end
deleted text begin 1997
deleted text end
deleted text begin $
deleted text end
deleted text begin 0
deleted text end
deleted text begin $
deleted text end
deleted text begin 0
deleted text end
deleted text begin 1998
deleted text end
deleted text begin $
deleted text end
deleted text begin 250,000
deleted text end
deleted text begin $
deleted text end
deleted text begin 250,000
deleted text end
deleted text begin 1999
deleted text end
deleted text begin $
deleted text end
deleted text begin 400,000
deleted text end
deleted text begin $
deleted text end
deleted text begin 400,000
deleted text end
deleted text begin 2000
deleted text end
deleted text begin $
deleted text end
deleted text begin 550,000
deleted text end
deleted text begin $
deleted text end
deleted text begin 550,000
deleted text end
deleted text begin 2001
deleted text end
deleted text begin $
deleted text end
deleted text begin 700,000
deleted text end
deleted text begin $
deleted text end
deleted text begin 700,000
deleted text end
deleted text begin 2002
deleted text end
deleted text begin $
deleted text end
deleted text begin 850,000
deleted text end
deleted text begin $
deleted text end
deleted text begin 850,000
deleted text end
deleted text begin 2003 and thereafter
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,000,000
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,000,000
deleted text end

deleted text begin (d)deleted text end new text begin (c) new text end Thirty percent of the difference between $5,720,000 and the current year
amortization aid and supplemental amortization aid under subdivisions 1 and 1a that is not
distributed for any reason to a municipality for use by a local police or salaried firefighter
relief association must be distributed under section 69.021, subdivision 7, paragraph (d),
as additional funding to support a minimum fire state aid amount for volunteer firefighter
relief associations.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, sections 128D.18; and 354A.12, subdivision 3b, new text end new text begin are
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 9

FEDERAL INTERNAL REVENUE CODE CONFORMITY PROVISIONS

Section 1.

Minnesota Statutes 2010, section 356.611, subdivision 2, is amended to read:


Subd. 2.

Federal compensation limits.

(a) For members of a covered pension plan
enumerated in section 356.30, subdivision 3, and of the plan established under chapter
353D, compensation in excess of the limitation specified in section 401(a)(17) of the
Internal Revenue Code, as amended, for changes in the cost of living under section
401(a)(17)(B) of the Internal Revenue Code, may not be included for contribution and
benefit computation purposes.

(b) Notwithstanding paragraph (a), for members specified in paragraph (a) who
first contributed to a plan specified in that paragraph before July 1, 1995, the annual
compensation limit specified in deleted text begin Internal Revenue Codedeleted text end new text begin sectionnew text end 401(a)(17) new text begin of the Internal
Revenue Code
new text end on June 30, 1993, applies if that provides a greater allowable annual
compensation.

new text begin (c) To the extent required by sections 3401(h) and 414(u)(12) of the federal Internal
Revenue Code, an individual receiving a differential wage payment as defined in section
3401(h)(2) of the federal Internal Revenue Code from an employer shall be treated
as employed by that employer, and the differential wage payment will be treated as
compensation for purposes of applying the limits on annual additions under section 415(c)
of the federal Internal Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2009.
new text end

Sec. 2.

Minnesota Statutes 2010, section 356.611, subdivision 3, is amended to read:


Subd. 3.

Maximum benefit limitations.

deleted text begin A member'sdeleted text end new text begin An annuitant's new text end annual benefit,
if necessary, must be reduced to the extent required by section 415(b) of the federal
Internal Revenue Code, as adjusted by the United States secretary of the treasury under
section 415(d) of the new text begin federal new text end Internal Revenue Code for any applicable increases in the
cost of livingnew text begin , including applicable increases in the cost of livingnew text end after the member's
termination of employment. deleted text begin For purposes of section 415 of the federal Internal Revenue
Code, the limitation year of a pension plan covered by this section must be the fiscal year
or calendar year of that plan, whichever is applicable.
deleted text end new text begin If an annuitant participated in more
than one pension plan in which the employer participates, the benefits under each plan
must be reduced proportionately, if necessary, to satisfy the applicable limitation.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2010, section 356.611, subdivision 3a, is amended to read:


Subd. 3a.

Maximum annual addition limitationnew text begin , defined contribution plansnew text end .

The
annual additions on behalf of a member to deleted text begin thedeleted text end new text begin a defined contribution new text end plan deleted text begin established
under chapter 352D or 353D
deleted text end for any limitation year deleted text begin beginning after December 31, 2001,deleted text end
shall not exceed the deleted text begin lesser of 100 percent of the member's compensation, as defined for
purposes of
deleted text end new text begin applicable limitation on annual additions under new text end section 415(c) of the new text begin federal
new text end Internal Revenue Codedeleted text begin ; or $40,000deleted text end , as adjusted by the United States secretary of the
treasury under section 415(d) of the new text begin federal new text end Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2010, section 356.611, subdivision 4, is amended to read:


Subd. 4.

Compensation.

deleted text begin (a)deleted text end For purposes of this section, compensation means a
member's compensation actually paid or made available for any limitation year including
new text begin all new text end items new text begin of remuneration new text end described in federal treasury regulation section 1.415 (c)-2(b)
and excluding new text begin all new text end items new text begin of remuneration new text end described in federal treasury regulation section
1.415 (c)-2(c).new text begin Compensation for pension plan purposes for any limitation year shall not
exceed the applicable federal compensation limit described in subdivision 2.
new text end

deleted text begin (b) Compensation for any period includes:
deleted text end

deleted text begin (1) any elective deferral as defined in section 402(g)(3) of the federal Internal
Revenue Code;
deleted text end

deleted text begin (2) any elective amounts that are not includable in a member's gross income by
reason of sections 125 or 457 of the federal Internal Revenue Code; and
deleted text end

deleted text begin (3) any elective amounts that are not includable in a member's gross income by
reason of section 132(f)(4) of the federal Internal Revenue Code.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2010, section 356.611, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Limitation year. new text end

new text begin Unless otherwise specifically provided, for purposes of
section 415 of the federal Internal Revenue Code, the limitation year of a pension plan
covered by this section is the calendar year or fiscal year, whichever is applicable.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2010, section 356.635, subdivision 6, is amended to read:


Subd. 6.

Eligible retirement plan.

(a) An "eligible retirement plan" is:

(1) an individual retirement account under section 408(a) new text begin or 408A new text end of the federal
Internal Revenue Code;

(2) an individual retirement annuity plan under section 408(b) of the federal Internal
Revenue Code;

(3) an annuity plan under section 403(a) of the federal Internal Revenue Code;

(4) a qualified trust plan under section 401(a) of the federal Internal Revenue Code
that accepts the distributee's eligible rollover distribution;

(5) an annuity contract under section 403(b) of the federal Internal Revenue Code;

(6) an eligible deferred compensation plan under section 457(b) of the federal
Internal Revenue Code, which is maintained by a state or local government and which
agrees to separately account for the amounts transferred into the plan; or

(7) in the case of an eligible rollover distribution to a nonspousal beneficiary, an
individual account or annuity treated as an inherited individual retirement account under
section 402(c)(11) of the federal Internal Revenue Code.

(b) For distributions of after-tax contributions which are not includable in gross
income, the after-tax portion may be transferred only to an individual retirement
account or annuity described in section 408(a) or (b) of the federal Internal Revenue
Code, new text begin to a Roth individual retirement account described in section 408A of the federal
Internal Revenue Code,
new text end or to a qualified deleted text begin defined contributiondeleted text end plan described in either
section 401(a) or 403(a) of the federal Internal Revenue Code, that agrees to separately
account for the amounts transferred, including separately accounting for the portion of
the distribution which is includable in gross income and the portion of the distribution
which is not includable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2008.
new text end

Sec. 7.

Minnesota Statutes 2010, section 356.635, subdivision 9, is amended to read:


Subd. 9.

Military service.

Contributions, benefits, new text begin including death and disability
benefits under section 401(a)(37) of the federal Internal Revenue Code,
new text end and service credit
with respect to qualified military service must be provided according to section 414(u) of
the new text begin federal new text end Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2007.
new text end

ARTICLE 10

AUTHORIZED PUBLIC PENSION FUND INVESTMENT REVISIONS

Section 1.

Minnesota Statutes 2010, section 11A.07, subdivision 4, is amended to read:


Subd. 4.

Duties and powers.

The director, at the direction of the state board, shall:

(1) plan, direct, coordinate, and execute administrative and investment functions
in conformity with the policies and directives of the state board and the requirements of
this chapter and of chapter 356A;

(2) prepare and submit biennial and annual budgets to the board and with the
approval of the board submit the budgets to the Department of Management and Budget;

(3) employ professional and clerical staff as necessary. Employees whose primary
responsibility is to invest or manage money or employees who hold positions designated
as unclassified under section 43A.08, subdivision 1a, are in the unclassified service of the
state. Other employees are in the classified service. Unclassified employees who are
not covered by a collective bargaining agreement are employed under the terms and
conditions of the compensation plan approved under section 43A.18, subdivision 3b;

(4) report to the state board on all operations under the director's control and
supervision;

(5) maintain accurate and complete records of securities transactions and official
activities;

(6) establish a policy relating to the purchase and sale of securities on the basis of
competitive offerings or bids. The policy is subject to board approval;

(7) cause securities acquired to be kept in the custody of the commissioner of
management and budget or other depositories consistent with chapter 356A, as the state
board deems appropriate;

(8) prepare and file with the director of the Legislative Reference Library, by
December 31 of each year, a report summarizing the activities of the state board, the
council, and the director during the preceding fiscal year. The report must be prepared
so as to provide the legislature and the people of the state with a clear, comprehensive
summary of the portfolio composition, the transactions, the total annual rate of return,
and the yield to the state treasury and to each of the funds whose assets are invested by
the state board, and the recipients of business placed or commissions allocated among
the various commercial banks, investment bankers, money managers, and brokerage
organizations and the amount of these commissions or other fees. deleted text begin The report must contain
financial statements for funds managed by the board prepared in accordance with generally
accepted accounting principles.
deleted text end The report must include an executive summary;

(9) include on the state board's Web site its annual report and an executive summary
of its quarterly reports;

(10) require state officials from any department or agency to produce and provide
access to any financial documents the state board deems necessary in the conduct of
its investment activities;

(11) receive and expend legislative appropriations; and

(12) undertake any other activities necessary to implement the duties and powers
set forth in this subdivision consistent with chapter 356A.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2010, section 11A.14, subdivision 14, is amended to read:


Subd. 14.

Reports required.

As of each valuation date, or as often as the state
board determines, each participant shall be informed of the number of units owned and the
current value of the units. deleted text begin Annually, the state board shall provide each participant financial
statements prepared in accordance with generally accepted accounting principles.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2010, section 11A.24, is amended to read:


11A.24 AUTHORIZED INVESTMENTS.

Subdivision 1.

Securities generally.

new text begin (a) new text end The state board deleted text begin shall have the authoritydeleted text end
new text begin is authorized new text end to purchase, sell, lend deleted text begin ordeleted text end new text begin , and new text end exchange the deleted text begin followingdeleted text end securities new text begin specified
in this section,
new text end for funds or accounts specifically made subject to this sectionnew text begin ,new text end including
puts and call options and future contracts traded on a contract market regulated by a
governmental agency or by a financial institution regulated by a governmental agency.
These securities may be owned new text begin directly or through shares in exchange-traded or mutual
funds, or
new text end as units in commingled trustsdeleted text begin that own the securities described in subdivisions 2
to 6
deleted text end new text begin , subject to any limitations as specified in this sectionnew text end .

new text begin (b)new text end Any agreement to lend securities must be concurrently collateralized with cash
or securities with a market value of not less than 100 percent of the market value of the
loaned securities at the time of the agreement. Any agreement for put and call options
and futures contracts may only be entered into with a fully offsetting amount of cash or
securities. Only securities authorized by this section, excluding those under subdivision 6,
paragraph (a), clauses (1) to deleted text begin (4)deleted text end new text begin (3)new text end , may be accepted as collateral or offsetting securities.

Subd. 2.

Government obligations.

The state board deleted text begin maydeleted text end new text begin is authorized to new text end invest
funds in governmental bonds, notes, bills, mortgages, and other evidences of indebtedness
deleted text begin provideddeleted text end new text begin if new text end the issue is backed by the full faith and credit of the issuer or new text begin if new text end the issue
is rated among the top four quality rating categories by a nationally recognized rating
agency. The obligations in which the board may invest under this subdivision deleted text begin includedeleted text end new text begin are
new text end guaranteed or insured issues ofdeleted text begin (a)deleted text end new text begin :
new text end

new text begin (1)new text end the United States, its agencies, its instrumentalities, or organizations created
and regulated by an act of Congress; deleted text begin (b)
deleted text end

new text begin (2) the Dominion ofnew text end Canada deleted text begin anddeleted text end new text begin or any of new text end its provinces, provided the principal and
interest deleted text begin isdeleted text end new text begin are new text end payable in United States dollars; deleted text begin (c)
deleted text end

new text begin (3) any ofnew text end the states deleted text begin anddeleted text end new text begin or any of new text end their municipalities, political subdivisions,
agencies or instrumentalities; deleted text begin (d) the International Bank for Reconstruction and
Development, the Inter-American Development Bank, the Asian Development Bank, the
African Development Bank, or
deleted text end new text begin and
new text end

new text begin (4)new text end any deleted text begin otherdeleted text end United States government sponsored organization of which the United
States is a member, deleted text begin provideddeleted text end new text begin if new text end the principal and interest deleted text begin isdeleted text end new text begin are new text end payable in United States
dollars.

Subd. 3.

Corporate obligations.

(a) The state board deleted text begin maydeleted text end new text begin is authorized to new text end invest
funds in bonds, notes, debentures, transportation equipment obligations, deleted text begin ordeleted text end new text begin and new text end any other
longer term evidences of indebtedness issued or guaranteed by a corporation organized
under the laws of the United States or any state deleted text begin thereofdeleted text end new text begin of the United Statesnew text end , or the
Dominion of Canada or any new text begin Canadian new text end province deleted text begin thereof provided thatdeleted text end new text begin ifnew text end :

(1) the principal and interest of obligations of corporations incorporated or organized
under the laws of the Dominion of Canada or any new text begin Canadian new text end province deleted text begin thereof shall bedeleted text end
new text begin are new text end payable in United States dollars; and

(2) new text begin the new text end obligations deleted text begin shall bedeleted text end new text begin are new text end rated among the top four quality categories by a
nationally recognized rating agency.

(b) The state board may invest in unrated corporate obligations or in corporate
obligations that are not rated among the top four quality categories as provided in
paragraph (a), clause (2), deleted text begin provided thatdeleted text end new text begin ifnew text end :

(1) the aggregate value of these obligations deleted text begin maydeleted text end new text begin does new text end not exceed five percent of the
market deleted text begin or bookdeleted text end valuedeleted text begin , whichever is less,deleted text end of the fund for which the state board is investing;

(2) the state board's participation is limited to 50 percent of a single offering subject
to this paragraph; and

(3) the state board's participation is limited to 25 percent of an issuer's obligations
subject to this paragraph.

Subd. 4.

Other obligations.

(a) The state board deleted text begin maydeleted text end new text begin is authorized to new text end invest funds
indeleted text begin bankers acceptances, certificates of deposit, deposit notes, commercial paper, mortgage
securities and asset backed securities, repurchase agreements and reverse repurchase
agreements, guaranteed investment contracts, savings accounts, and guaranty fund
certificates, surplus notes, or debentures of domestic mutual insurance companies if they
conform to the following provisions
deleted text end :

(1) bankers acceptances and deposit notes deleted text begin of United States banks are limited to thosedeleted text end
new text begin if new text end issued by deleted text begin banksdeleted text end new text begin a United States bank that is new text end rated in the highest four quality categories
by a nationally recognized rating agency;

(2) certificates of deposit deleted text begin are limited to thosedeleted text end new text begin if new text end issued by deleted text begin (i)deleted text end new text begin a new text end United States deleted text begin banks
and savings institutions that are
deleted text end new text begin bank or savings institution that is new text end rated in the top four
quality categories by a nationally recognized rating agency or whose certificates of deposit
are fully insured by federal agenciesdeleted text begin ;deleted text end new text begin ,new text end or deleted text begin (ii)deleted text end new text begin certificates of deposits issued by a new text end credit
deleted text begin unionsdeleted text end new text begin union new text end in deleted text begin amounts up todeleted text end new text begin an amount within new text end the limit of new text begin the new text end insurance coverage
provided by the National Credit Union Administration;

(3) commercial paper deleted text begin is limited to thosedeleted text end new text begin if new text end issued by new text begin a new text end United States deleted text begin corporationsdeleted text end
new text begin corporation new text end or deleted text begin theirdeleted text end new text begin its new text end Canadian deleted text begin subsidiariesdeleted text end new text begin subsidiary new text end and new text begin if new text end rated in the highest two
quality categories by a nationally recognized rating agency;

(4) mortgage securities deleted text begin shall bedeleted text end new text begin and asset-backed securities if new text end rated in the top four
quality categories by a nationally recognized rating agency;

(5) deleted text begin collateral fordeleted text end repurchase agreements and reverse repurchase agreements deleted text begin is
limited to
deleted text end new text begin if collateralized with new text end letters of credit deleted text begin anddeleted text end new text begin or new text end securities authorized in this section;

(6) guaranteed investment contracts deleted text begin are limited to thosedeleted text end new text begin if new text end issued by new text begin an new text end insurance
deleted text begin companiesdeleted text end new text begin company new text end or deleted text begin banksdeleted text end new text begin a bank that is new text end rated in the top four quality categories by a
nationally recognized rating agency or deleted text begin todeleted text end alternative guaranteed investment contracts
deleted text begin wheredeleted text end new text begin if new text end the underlying assets comply with the requirements of this section;

(7) savings accounts deleted text begin are limited to thosedeleted text end new text begin if new text end fully insured by new text begin a new text end federal deleted text begin agenciesdeleted text end new text begin
agency
new text end ; and

(8) deleted text begin asset backed securities shall be rated in the top four quality categories by a
nationally recognized rating agency
deleted text end new text begin guaranty fund certificates, surplus notes, or debentures
if issued by a domestic mutual insurance company
new text end .

(b) Sections 16A.58, 16C.03, subdivision 4, and 16C.05 do not apply to certificates
of deposit and collateralization agreements executed by the state board under paragraph
(a), clause (2).

(c) In addition to investments authorized by paragraph (a), clause (4), the state board
deleted text begin maydeleted text end new text begin is authorized to new text end purchase from the Minnesota Housing Finance Agency all or any
part of a pool of residential mortgages, not in default, that has previously been financed
by the issuance of bonds or notes of the agency. The state board may also enter into a
commitment with the agency, at the time of any issue of bonds or notes, to purchase at
a specified future date, not exceeding 12 years from the date of the issue, the amount of
mortgage loans then outstanding and not in default that have been made or purchased from
the proceeds of the bonds or notes. The state board may charge reasonable fees for any
such commitment and may agree to purchase the mortgage loans at a price sufficient to
produce a yield to the state board comparable, in its judgment, to the yield available on
similar mortgage loans at the date of the bonds or notes. The state board may also enter
into agreements with the agency for the investment of any portion of the funds of the
agency. The agreement must cover the period of the investment, withdrawal privileges,
and any guaranteed rate of return.

Subd. 5.

Corporate stocks.

The state board deleted text begin maydeleted text end new text begin is authorized to new text end invest funds in
stocks or convertible issues of any corporation organized under the laws of the United
States or deleted text begin thedeleted text end new text begin any of its new text end statesdeleted text begin thereofdeleted text end , the Dominion of Canada or new text begin any of new text end its provinces, or
any corporation listed on an exchange new text begin that is new text end regulated by an agency of the United States
or new text begin of the new text end Canadian national governmentdeleted text begin , if they conform to the following provisions:deleted text end new text begin .
new text end

deleted text begin (a) The aggregate value of corporate stock investments, as adjusted for realized
profits and losses, shall not exceed 85 percent of the market or book value, whichever is
less, of a fund, less the aggregate value of investments according to subdivision 6;
deleted text end

deleted text begin (b) Investments shalldeleted text end new text begin An investment in any corporation must new text end not exceed five percent
of the total outstanding shares of deleted text begin any onedeleted text end new text begin that new text end corporation, except that the state board may
hold up to 20 percent of the shares of a real estate investment trust and up to 20 percent
of the shares of a closed-end mutual fund.

new text begin Subd. 5a. new text end

new text begin Asset mix limitations. new text end

new text begin The aggregate value of investments under
subdivision 5, plus the aggregate value of all investments under subdivision 6, must not
exceed 85 percent of the market value of a fund.
new text end

Subd. 6.

Other investments.

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

(1) deleted text begin venture capitaldeleted text end new text begin equity and debt new text end investment businesses through participation in
limited partnerships, trusts, private placements, limited liability corporations, limited
liability companies, limited liability partnerships, and corporations;

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

deleted text begin (3) regional and mutual funds through bank sponsored collective funds and open-end
investment companies registered under the Federal Investment Company Act of 1940, and
closed-end mutual funds listed on an exchange regulated by a governmental agency;
deleted text end

deleted text begin (4)deleted text end new text begin (3) new text end resource investments through limited partnerships, trusts, private placements,
limited liability corporations, limited liability companies, limited liability partnerships,
and corporations; and

deleted text begin (5)deleted text end new text begin (4) new text end international securities.

(b) The investments authorized in paragraph (a) must conform to the following
provisions:

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

(2) there must be at least four unrelated owners of the investment other than the state
board for investments made under paragraph (a), clause (1), (2), new text begin or new text end (3)deleted text begin , or (4)deleted text end ;

(3) state board participation in an investment vehicle is limited to 20 percent thereof
for investments made under paragraph (a), clause (1), (2), new text begin or new text end (3)deleted text begin , or (4)deleted text end ; and

(4) state board participation in a limited partnership does not include a general
partnership interest or other interest involving general liability. The state board may not
engage in any activity as a limited partner which creates general liability.

(c) All financial, business, or proprietary data collected, created, received, or
maintained by the state board in connection with investments authorized by paragraph (a),
clause (1), (2), or deleted text begin (4)deleted text end new text begin (3)new text end , are nonpublic data under section 13.02, subdivision 9. As used
in this paragraph, "financial, business, or proprietary data" means data, as determined by
the responsible authority for the state board, that is of a financial, business, or proprietary
nature, the release of which could cause competitive harm to the state board, the legal
entity in which the state board has invested or has considered an investment, the managing
entity of an investment, or a portfolio company in which the legal entity holds an interest.
As used in this section, "business data" is data described in section 13.591, subdivision 1.
Regardless of whether they could be considered financial, business, or proprietary data, the
following data received, prepared, used, or retained by the state board in connection with
investments authorized by paragraph (a), clause (1), (2), or deleted text begin (4)deleted text end new text begin (3)new text end , are public at all times:

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

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

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

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

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

(6) the age of the investment in years.

Subd. 7.

Appropriation.

There is annually appropriated to the state board, from
the assets of the funds for which the state board invests deleted text begin pursuantdeleted text end new text begin relating new text end to new text begin authorized
investments under
new text end subdivision 6, deleted text begin clausedeleted text end new text begin paragraph new text end (a), sums sufficient to pay the costs for
the management of these deleted text begin fundsdeleted text end new text begin assets new text end by private management firms.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2010, section 69.77, subdivision 9, is amended to read:


Subd. 9.

Local police and paid fire relief association investment authority.

(a) The deleted text begin fundsdeleted text end new text begin special fund new text end of the association must be invested in securities that are
authorized investments under section 356A.06, subdivision 6 or 7, whichever applies.deleted text begin
Notwithstanding any provision of section 356A.06, subdivision 6 or 7 to the contrary, the
special fund of the relief association may be additionally invested in:
deleted text end

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

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

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

new text begin (c) The governing board of the association may certify general fund assets of the
relief association for investment by the State Board of Investment in fixed income pools
or in a separately managed account at the discretion of the State Board of Investment
as provided in section 11A.14.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2010, section 69.775, is amended to read:


69.775 INVESTMENTS.

(a) The special fund assets of a relief association governed by sections 69.771 to
69.776 must be invested in securities that are authorized investments under section
356A.06, subdivision 6 or 7new text begin , whichever appliesnew text end .

deleted text begin (b) Notwithstanding the foregoing, up to 75 percent of the market value of the assets
of the special fund, not including any money market mutual funds, may be invested in
open-end investment companies registered under the federal Investment Company Act of
1940, if the portfolio investments of the investment companies comply with the type of
securities authorized for investment under section 356A.06, subdivision 7.
deleted text end

deleted text begin (c) Securities held by the associations before June 2, 1989, that do not meet the
requirements of this section may be retained after that date if they were proper investments
for the association on that date.
deleted text end

deleted text begin (d) The governing board of the association may select and appoint investment
agencies to act for and in its behalf or may certify special fund assets for investment by the
State Board of Investment under section 11A.17.
deleted text end

deleted text begin (e) The governing board of the association may certify general fund assets of the
relief association for investment by the State Board of Investment in fixed income pools
or in a separately managed account at the discretion of the State Board of Investment
as provided in section 11A.14.
deleted text end

deleted text begin (f)deleted text end new text begin (b) new text end The governing board of the association may select and appoint a qualified
private firm to measure management performance and return on investment, and the
firm deleted text begin shalldeleted text end new text begin must new text end use the formula or formulas developed by the state board under section
11A.04, clause (11).

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2010, section 354A.08, is amended to read:


354A.08 AUTHORIZED INVESTMENTS.

deleted text begin (a)deleted text end In addition to investments authorized under section 356A.06, subdivision 7, a
teachers retirement fund association may receive, hold, and dispose ofdeleted text begin :
deleted text end

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2010, section 356.219, subdivision 1, is amended to read:


Subdivision 1.

Report required.

(a) deleted text begin Except as indicated in subdivision 4,deleted text end The State
Board of Investment, on behalf of the public pension funds and programs for which it is
the investment authority, and any Minnesota public pension plan that is not fully invested
through the State Board of Investment, including a local police or firefighters relief
association governed by sections 69.77 or 69.771 to 69.775, shall report the information
specified in subdivision 3 to the state auditor. The state auditor may prescribe a form or
forms for the purposes of the reporting requirements contained in this section.

(b) A local police or firefighters relief association governed by section 69.77 or
sections 69.771 to 69.775 is fully invested during a given calendar year for purposes of
this section if all assets of the applicable pension plan beyond sufficient cash equivalent
investments to cover six months expected expenses are invested under section 11A.17.
The board of any fully invested public pension plan remains responsible for submitting
investment policy statements and subsequent revisions as required by subdivision 3,
paragraph (a).

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

new text begin (d) This section does not apply to the following plans:
new text end

new text begin (1) the Minnesota unclassified employees retirement program under chapter 352D;
new text end

new text begin (2) the public employees defined contribution plan under chapter 353D;
new text end

new text begin (3) the individual retirement account plans under chapters 354B and 354D;
new text end

new text begin (4) the higher education supplemental retirement plan under chapter 354C;
new text end

new text begin (5) any alternative retirement benefit plan established under section 383B.914; and
new text end

new text begin (6) the University of Minnesota faculty retirement plan.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2010, section 356.219, subdivision 8, is amended to read:


Subd. 8.

Timing of reports.

(a) For salaried firefighter relief associations, police
relief associations, and volunteer firefighter relief associations, the information required
under this section must be submitted by the due date for reports required under section
69.051, subdivision 1 or 1a, as applicable. If a relief association satisfies the definition of
a fully invested plan under subdivision 1, paragraph (b), for the calendar year covered
by the report required under section 69.051, subdivision 1 or 1a, as applicable, the chief
administrative officer of the covered pension plan shall certify that compliance on a form
prescribed by the state auditor. The state auditor shall transmit annually to the State Board
of Investment a list or lists of covered pension plans which submitted certifications in
order to facilitate reporting by the State Board of Investment under paragraph (c).

(b) For deleted text begin the Minneapolis Teachers Retirement Fund Association,deleted text end the St. Paul
Teachers Retirement Fund Association, the Duluth Teachers Retirement Fund Association,
deleted text begin the Minneapolis Employees Retirement Fund,deleted text end new text begin and new text end the University of Minnesota faculty
supplemental retirement plan, deleted text begin and the applicable administrators for the University of
Minnesota faculty retirement plan and the individual retirement account plans under
chapters 354B and 354D,
deleted text end the information required under this section must be submitted to
the state auditor by June 1 of each year.

(c) The State Board of Investment, on behalf of pension funds specified in
subdivision 1, paragraph (c), must report information required under this section by
September 1 of each year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2010, section 356A.01, subdivision 19, is amended to read:


Subd. 19.

Pension fund.

"Pension fund" means the assets amassed and held in a
pension plan, other than the general fund, as reserves for present and future payment of
benefits and administrative expenses.new text begin For a retirement plan governed by section 69.77 or
by chapter 424A, the term means the relief association special fund.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2010, section 356A.06, subdivision 6, is amended to read:


Subd. 6.

Limited list of authorized investment securities.

(a) deleted text begin Except to the
extent otherwise authorized by law,
deleted text end new text begin Authority. new text end new text begin This subdivision specifies the investment
authority for a limited list plan. A limited list plan is
new text end a covered pension plan deleted text begin may invest its
assets only in investment securities authorized by this subdivision if the plan
deleted text end new text begin that new text end does not:

(1) have new text begin pension fund new text end assets with a deleted text begin bookdeleted text end new text begin market new text end value in excess of $1,000,000;

(2) use the services of an investment advisor registered with the Securities and
Exchange Commission in accordance with the Investment Advisers Act of 1940, or
registered as an investment advisor in accordance with sections 80A.58, and 80A.60,
for the investment of at least 60 percent of its new text begin pension fund new text end assets, calculated on deleted text begin bookdeleted text end
new text begin market new text end value;

(3) use the services of the State Board of Investment for the investment of at least 60
percent of its new text begin pension fund new text end assets, calculated on deleted text begin bookdeleted text end new text begin market new text end value; or

(4) use a combination of the services of an investment advisor meeting the
requirements of clause (2) and the services of the State Board of Investment for the
investment of at least 75 percent of its new text begin pension fund new text end assets, calculated on deleted text begin bookdeleted text end new text begin market
new text end value.

(b) Investment new text begin agency appointment authority. new text end deleted text begin securities authorized fordeleted text end new text begin The
governing board of
new text end a new text begin covered new text end pension plan deleted text begin covered by this subdivision are:deleted text end new text begin may select
and appoint investment agencies to act for or on its behalf.
new text end

new text begin (c) Savings accounts; similar vehicles. A limited list plan is authorized to invest in:
new text end

(1) certificates of deposit issued, to the extent of available insurance or
collateralization, by a financial institution that is a member of the Federal Deposit
Insurance Corporation or the Federal Savings and Loan Insurance Corporation, new text begin that new text end is
insured by the National Credit Union Administration, or new text begin that new text end is authorized to do business
in this state and has deposited with the chief administrative officer of the plan a sufficient
amount of marketable securities as collateral in accordance with section 118A.03;

(2) new text begin guaranteed investment contracts, limited to those issued by insurance companies
or banks rated in the top four quality categories by a nationally recognized rating agency
or to alternative guaranteed investment contracts where the underlying assets comply
with the requirements of this paragraph; and
new text end

new text begin (3) new text end savings accounts, deleted text begin to the extent of available insurance, with a financial institution
that is a member of the Federal Deposit Insurance Corporation or the Federal Savings and
Loan Insurance Corporation;
deleted text end new text begin limited to those fully insured by federal agencies.
new text end

deleted text begin (3)deleted text end new text begin (d) new text begin Government-backed obligations. new text end A limited list plan is authorized to invest
in
new text end governmental obligationsnew text begin as further specified in this paragraphnew text end , including bonds, notes,
bills, deleted text begin or other fixed obligations, issued by the United States, an agency or instrumentality
of the United States, an organization established and regulated by an act of Congress or by
a state, state agency or instrumentality, municipality, or other governmental or political
subdivision that
deleted text end new text begin mortgages, and other evidences of indebtedness, if the issue is backed
by the full faith and credit of the issuer or if the issue is rated among the top four quality
rating categories by a nationally recognized rating agency. The obligations in which plans
are authorized to invest under this paragraph are guaranteed or insured issues of
new text end :

deleted text begin (i) for the obligation in question, issues an obligation that equals or exceeds the
stated investment yield of debt securities not exempt from federal income taxation and of
comparable quality;
deleted text end

deleted text begin (ii) for an obligation that is a revenue bond, has been completely self-supporting
for the last five years; and
deleted text end

deleted text begin (iii) for an obligation other than a revenue bond, has issued an obligation backed by
the full faith and credit of the applicable taxing jurisdiction and has not been in default on
the payment of principal or interest on the obligation in question or any other nonrevenue
bond obligation during the preceding ten years;
deleted text end

new text begin (1) the United States, one of its agencies, one of its instrumentalities, or an
organization created and regulated by an act of Congress;
new text end

new text begin (2) the Dominion of Canada or one of its provinces if the principal and interest are
payable in United States dollars;
new text end

new text begin (3) a state or one of its municipalities, political subdivisions, agencies, or
instrumentalities; or
new text end

new text begin (4) any United States government-sponsored organization of which the United States
is a member if the principal and interest are payable in United States dollars.
new text end

deleted text begin (4)deleted text end new text begin (e) new text begin Corporate obligations. new text end A limited list plan is authorized to invest in new text end corporate
obligations, including bonds, notes, debentures, deleted text begin or other regularly issued and readily
marketable evidences of indebtedness issued by a corporation organized under the laws
of any state that during the preceding five years has had on average annual net pretax
earnings at least 50 percent greater than the annual interest charges and principal payments
on the total issued debt of the corporation during that period and that, for the obligation
in question, has issued an obligation rated in one of the top three quality categories by
Moody's Investors Service, Incorporated, or Standard and Poor's Corporation; and
deleted text end

deleted text begin (5) shares in an open-end investment company registered under the federal
Investment Company Act of 1940, if the portfolio investments of the company are limited
to investments that meet the requirements of clauses (1) to (4).
deleted text end new text begin transportation equipment
obligations, or any other longer-term evidences of indebtedness issued or guaranteed by
a corporation organized under the laws of the United States or any of its states, or the
Dominion of Canada or any of its provinces if:
new text end

new text begin (1) the principal and interest are payable in United States dollars; and
new text end

new text begin (2) the obligations are rated among the top four quality categories by a nationally
recognized rating agency.
new text end

new text begin (f) Mutual fund authority, limited list authorized assets. Securities authorized
under paragraphs (c) to (e) may be owned directly or through shares in exchange-traded
funds, or through open-end mutual funds, or as units of commingled trusts.
new text end

new text begin (g) Extended mutual fund authority. Notwithstanding restrictions in other
paragraphs of this subdivision, a limited list plan is authorized to invest the assets of
the special fund in exchange-traded funds and open-end mutual funds, if their portfolio
investments comply with the type of securities authorized for investment under section
356A.06, subdivision 7, paragraphs (c) to (g). Investments under this paragraph must not
exceed 75 percent of the assets of the special fund, not including any money market
investments through mutual or exchange-traded funds.
new text end

new text begin (h) Supplemental fund authority. The governing body of a limited list plan may
certify special fund assets to the State Board of Investment for investment under section
11A.17.
new text end

new text begin (i) Assets mix restrictions. A limited list plan must conform to the asset mix
limitations specified in section 356A.06, subdivision 7.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2010, section 356A.06, subdivision 7, is amended to read:


Subd. 7.

Expanded list of authorized investment securities.

(a) Authority.
deleted text begin Except to the extent otherwise authorized by law,deleted text end A covered pension plan not described by
subdivision 6, paragraph (a), new text begin is an expanded list plan and new text end shall invest its assets deleted text begin only in
accordance with
deleted text end new text begin as specified in new text end this subdivision.new text begin The governing board of an expanded list
plan may select and appoint investment agencies to act for or on its behalf.
new text end

(b) Securities generallynew text begin ; investment formsnew text end . deleted text begin The covered pensiondeleted text end new text begin An expanded list
new text end plan deleted text begin has the authoritydeleted text end new text begin is authorized new text end to purchase, sell, lend, deleted text begin ordeleted text end new text begin and new text end exchange the new text begin investment
new text end securities deleted text begin specified in paragraphs (c) to (i)deleted text end new text begin authorized under this subdivisionnew text end , including
puts and call options and future contracts traded on a contract market regulated by a
governmental agency or by a financial institution regulated by a governmental agency.
These securities may be owned new text begin directly or through shares in exchange-traded or mutual
funds, or
new text end as units in commingled trustsdeleted text begin that own the securities described in paragraphs (c)
to (i), including real estate investment trusts and insurance company commingled accounts,
including separate accounts
deleted text end new text begin , subject to any limitations specified in this subdivisionnew text end .

(c) Government obligations. deleted text begin The covered pensiondeleted text end new text begin An expanded list new text end plan deleted text begin maydeleted text end
new text begin is authorized to new text end invest funds in governmental bonds, notes, bills, mortgages, and other
evidences of indebtedness if the issue is backed by the full faith and credit of the issuer or
the issue is rated among the top four quality rating categories by a nationally recognized
rating agency. The obligations in which funds may be invested under this paragraph
deleted text begin includedeleted text end new text begin are new text end guaranteed or insured issues ofnew text begin :new text end

(1) the United States, new text begin one of new text end its agencies, new text begin one of new text end its instrumentalities, or deleted text begin organizationsdeleted text end
new text begin an organization new text end created and regulated by an act of Congress;

(2) new text begin the Dominion of new text end Canada deleted text begin anddeleted text end new text begin or one of new text end its provincesdeleted text begin , provideddeleted text end new text begin if new text end the principal
and interest deleted text begin isdeleted text end new text begin are new text end payable in United States dollars;

(3) deleted text begin the states and theirdeleted text end new text begin a state or one of its new text end municipalities, political subdivisions,
agencies, or instrumentalities; new text begin and
new text end

(4) deleted text begin the International Bank for Reconstruction and Development, the Inter-American
Development Bank, the Asian Development Bank, the African Development Bank, or
any other
deleted text end new text begin a new text end United States deleted text begin government sponsoreddeleted text end new text begin government-sponsorednew text end organization of
which the United States is a memberdeleted text begin , provideddeleted text end new text begin if new text end the principal and interest deleted text begin isdeleted text end new text begin are new text end payable
in United States dollars.

(d) new text begin Investment-grade new text end corporate obligations. deleted text begin The covered pensiondeleted text end new text begin An expanded
list
new text end plan deleted text begin maydeleted text end new text begin is authorized to new text end invest funds in bonds, notes, debentures, transportation
equipment obligations, or any other longer term evidences of indebtedness issued or
guaranteed by a corporation organized under the laws of the United States or any deleted text begin state
thereof
deleted text end new text begin of its statesnew text end , or the Dominion of Canada or any deleted text begin province thereofdeleted text end new text begin of its provinces new text end ifdeleted text begin
they conform to the following provisions
deleted text end :

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

(2) new text begin the new text end obligations deleted text begin must bedeleted text end new text begin are new text end rated among the top four quality categories by a
nationally recognized rating agency.

new text begin (e) Below-investment-grade corporate obligations. An expanded list plan is
authorized to invest in unrated corporate obligations or in corporate obligations that are
not rated among the top four quality categories by a nationally recognized rating agency if:
new text end

new text begin (1) the aggregate value of these obligations does not exceed five percent of the
covered pension plan's market value;
new text end

new text begin (2) the covered pension plan's participation is limited to 50 percent of a single
offering subject to this paragraph; and
new text end

new text begin (3) the covered pension plan's participation is limited to 25 percent of an issuer's
obligations subject to this paragraph.
new text end

deleted text begin (e)deleted text end new text begin (f) new text end Other obligations. (1) deleted text begin The covered pensiondeleted text end new text begin An expanded list new text end plan deleted text begin maydeleted text end new text begin is
authorized to
new text end invest funds indeleted text begin bankers acceptances, certificates of deposit, deposit notes,
commercial paper, mortgage participation certificates and pools, asset backed securities,
repurchase agreements and reverse repurchase agreements, guaranteed investment
contracts, savings accounts, and guaranty fund certificates, surplus notes, or debentures of
domestic mutual insurance companies if they conform to the following provisions
deleted text end :

(i) bankers acceptances and deposit notes deleted text begin of United States banks are limited to thosedeleted text end
new text begin if new text end issued by deleted text begin banksdeleted text end new text begin a United States bank that is new text end rated in the highest four quality categories
by a nationally recognized rating agency;

(ii) certificates of deposit deleted text begin are limited to thosedeleted text end new text begin if new text end issued by deleted text begin (A)deleted text end new text begin a new text end United States
deleted text begin banks anddeleted text end new text begin bank or new text end savings deleted text begin institutions that aredeleted text end new text begin institution new text end rated in the highest four quality
categories by a nationally recognized rating agency or whose certificates of deposit are
fully insured by federal agenciesdeleted text begin ;deleted text end new text begin ,new text end or deleted text begin (B)deleted text end new text begin if issued by a new text end credit deleted text begin unionsdeleted text end new text begin union new text end in deleted text begin amounts
up to
deleted text end new text begin an amount within new text end the limit of new text begin the new text end insurance coverage provided by the National
Credit Union Administration;

(iii) commercial paper deleted text begin is limited to thosedeleted text end new text begin if new text end issued by new text begin a new text end United States deleted text begin corporationsdeleted text end
new text begin corporation new text end or deleted text begin theirdeleted text end new text begin its new text end Canadian deleted text begin subsidiariesdeleted text end new text begin subsidiary new text end and new text begin if new text end rated in the highest two
quality categories by a nationally recognized rating agency;

(iv) mortgage deleted text begin participation or pass through certificates evidencing interests in pools
of first mortgages or trust deeds on improved real estate located in the United States where
the loan to value ratio for each loan as calculated in accordance with section 61A.28,
subdivision 3
, does not exceed 80 percent for fully amortizable residential properties and
in all other respects meets the requirements of section 61A.28, subdivision 3
deleted text end new text begin securities
and asset-backed securities if rated in the top four quality categories by a nationally
recognized rating agency
new text end ;

(v) deleted text begin collateral fordeleted text end repurchase agreements and reverse repurchase agreements deleted text begin is
limited to
deleted text end new text begin if collateralized with new text end letters of credit deleted text begin anddeleted text end new text begin or new text end securities authorized in this section;

(vi) guaranteed investment contracts deleted text begin are limited to thosedeleted text end new text begin if new text end issued by new text begin an new text end insurance
deleted text begin companiesdeleted text end new text begin company new text end or deleted text begin banksdeleted text end new text begin a bank that is new text end rated in the top four quality categories by a
nationally recognized rating agency or deleted text begin todeleted text end alternative guaranteed investment contracts
deleted text begin wheredeleted text end new text begin if new text end the underlying assets comply with the requirements of this subdivision;

(vii) savings accounts deleted text begin are limited to thosedeleted text end new text begin if new text end fully insured by new text begin a new text end federal deleted text begin agenciesdeleted text end new text begin
agency
new text end ; and

(viii) deleted text begin asset backed securities must be rated in the top four quality categories by a
nationally recognized rating agency
deleted text end new text begin guaranty fund certificates, surplus notes, or debentures
if issued by a domestic mutual insurance company
new text end .

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

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

deleted text begin (f)deleted text end new text begin (g) new text end Corporate stocks. deleted text begin The covered pensiondeleted text end new text begin An expanded list new text end plan deleted text begin maydeleted text end new text begin is
authorized to
new text end invest deleted text begin fundsdeleted text end in stocks or convertible issues of any corporation organized
under the laws of the United States or deleted text begin thedeleted text end new text begin any of its new text end statesdeleted text begin thereofdeleted text end , any corporation
organized under the laws of the Dominion of Canada or new text begin any of new text end its provinces, or any
corporation listed on an exchange new text begin that is new text end regulated by an agency of the United States or of
the Canadian national governmentdeleted text begin , if they conform to the following provisions:deleted text end new text begin .
new text end

deleted text begin (1) the aggregate value of investments under this paragraph, plus paragraphs (g) and
(k), plus equity investments under paragraphs (h), (i), and (j), as adjusted for realized
gains and losses, must not exceed 85 percent of the market or book value, whichever is
less, of a fund; and
deleted text end

deleted text begin (2) investmentsdeleted text end new text begin An investment in any corporation new text end must not exceed five percent of
the total outstanding shares of deleted text begin any onedeleted text end new text begin that new text end corporationnew text begin , except that an expanded list plan
may hold up to 20 percent of the shares of a real estate investment trust and up to 20
percent of the shares of a closed mutual fund
new text end .

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

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

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

deleted text begin (j) Exchange traded funds. The covered pension plan may invest funds in exchange
traded funds, subject to the maximums, the requirements, and the limitations set forth in
paragraphs (c) to (i), as applicable.
deleted text end

deleted text begin (k)deleted text end new text begin (h) new text end Other investments. (1) In addition to the investments authorized in
paragraphs (b) to deleted text begin (j)deleted text end new text begin (g)new text end , and subject to the provisions in clause (2), deleted text begin the covered pensiondeleted text end
new text begin an expanded list new text end plan deleted text begin maydeleted text end new text begin is authorized to new text end invest funds in:

(i) deleted text begin venture capitaldeleted text end new text begin equity and debt new text end investment businesses through participation in
limited partnershipsnew text begin , trusts, private placements, limited liability corporations, limited
liability companies, limited liability partnerships,
new text end and corporations;

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

deleted text begin (iii) regional and mutual funds through bank sponsored collective funds and
open-end investment companies registered under the Federal Investment Company Act of
1940 to the extent that a fund or a portion of a fund does not qualify under paragraph (h);
deleted text end

deleted text begin (iv)deleted text end new text begin (iii) new text end resource investments through limited partnerships, new text begin trusts, new text end private
placements, new text begin limited liability corporations, limited liability companies, limited liability
partnerships,
new text end and corporations; and

deleted text begin (v)deleted text end new text begin (iv) new text end international deleted text begin debt securities and emerging market equitydeleted text end securities.

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

(i) the aggregate value of all investments made deleted text begin according todeleted text end new text begin under new text end clause (1),
deleted text begin including allocated amounts of index and mutual fundsdeleted text end new text begin items (i), (ii), and (iii)new text end , may not
exceed deleted text begin 20deleted text end new text begin 35 new text end percent of the market value of the fund for which the deleted text begin covered pensiondeleted text end
new text begin expanded list new text end plan is investing;

(ii) there must be at least four unrelated owners of the investment other than the
deleted text begin covered pensiondeleted text end new text begin expanded list new text end plan for investments made under clause (1), item (i), (ii),
new text begin or new text end (iii)deleted text begin , or (iv)deleted text end ;

(iii) deleted text begin covered pension plandeleted text end new text begin the expanded list plan's new text end participation in an investment
vehicle is limited to 20 percent thereof for investments made under clause (1), item (i),
(ii), new text begin or new text end (iii)deleted text begin , or (iv)deleted text end ;deleted text begin and
deleted text end

(iv) deleted text begin covered pension plandeleted text end new text begin the expanded list plan's new text end participation in a limited
partnership does not include a general partnership interest or other interest involving
general liability. The deleted text begin covered pensiondeleted text end new text begin expanded list new text end plan may not engage in any activity
as a limited partner which creates general liabilitydeleted text begin .deleted text end new text begin ; and
new text end

new text begin (v) for volunteer firefighter relief associations, emerging market equity and
international debt investments authorized under clause (1), item (iv), must not exceed 15
percent of the association's special fund market value.
new text end

new text begin (i) new text end new text begin Supplemental plan investments. new text end new text begin The governing body of an expanded list plan
may certify assets to the State Board of Investment for investment under section 11A.17.
new text end

new text begin (j) new text end new text begin Asset mix limitations. new text end new text begin The aggregate value of an expanded list plan's
investments under paragraphs (g) and (h) and equity investments under paragraph (i),
regardless of the form in which these investments are held, must not exceed 85 percent of
the covered plan's market value.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12. new text begin INVESTMENT AUTHORITY TRANSITION PROVISION.
new text end

new text begin If any investment by the State Board of Investment or any covered pension plan fund
was an authorized investment under law in effect immediately before the effective date
of applicable sections of this act, but is not authorized by this act, the applicable assets
must be liquidated before June 30, 2013.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 356.219, subdivision 4, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 11

LOCAL RELIEF ASSOCIATION OR CONSOLIDATION ACCOUNT
MERGERS WITH PERA-P&F

Section 1.

Minnesota Statutes 2011 Supplement, section 69.77, subdivision 1a, is
amended to read:


Subd. 1a.

Covered retirement plans.

The provisions of this section apply to deleted text begin the
following local retirement plans:
deleted text end

deleted text begin (1)deleted text end the Bloomington Firefighters Relief Associationdeleted text begin ;deleted text end new text begin .
new text end

deleted text begin (2) the Fairmont Police Relief Association; and
deleted text end

deleted text begin (3) the Virginia Fire Department Relief Association.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) For the Fairmont Police Relief Association, this section
is effective as of the date for consolidation set by the board of the Public Employees
Retirement Association in consultation with the State Board of Investment, but not later
than June 29, 2012.
new text end

new text begin (b) For the Virginia fire consolidation account, this section is effective on June 29,
2012, which is the effective date of merger.
new text end

Sec. 2.

Minnesota Statutes 2011 Supplement, section 69.77, subdivision 4, is amended
to read:


Subd. 4.

Relief association financial requirements; minimum municipal
obligation.

(a) The officers of the relief association shall determine the financial
requirements of the relief association and minimum obligation of the municipality for
the following calendar year in accordance with the requirements of this subdivision.
The financial requirements of the relief association and the minimum obligation of the
municipality must be determined on or before the submission date established by the
municipality under subdivision 5.

(b) The financial requirements of the relief association for the following calendar
year must be based on the most recent actuarial valuation or survey of the special fund of
the association if more than one fund is maintained by the association, or of the association,
if only one fund is maintained, prepared in accordance with sections 356.215, subdivisions
4 to 15
, and 356.216, as required under subdivision 10. If an actuarial estimate is prepared
by the actuary of the relief association as part of obtaining a modification of the benefit
plan of the relief association and the modification is implemented, the actuarial estimate
must be used in calculating the subsequent financial requirements of the relief association.

(c) If the relief association has an unfunded actuarial accrued liability as reported in
the most recent actuarial valuation or survey, the total of the amounts calculated under
clauses (1), (2), and (3), constitute the financial requirements of the relief association for
the following year. If the relief association does not have an unfunded actuarial accrued
liability as reported in the most recent actuarial valuation or survey, the amount calculated
under clauses (1) and (2) constitute the financial requirements of the relief association for
the following year. The financial requirement elements are:

(1) the normal level cost requirement for the following year, expressed as a dollar
amount, which must be determined by applying the normal level cost of the relief
association as reported in the actuarial valuation or survey and expressed as a percentage
of covered payroll to the estimated covered payroll of the active membership of the relief
association, including any projected change in the active membership, for the following
year;

(2) for the Bloomington Fire Department Relief Associationdeleted text begin , the Fairmont Police
Relief Association, and the Virginia Fire Department Relief Association
deleted text end , to the dollar
amount of normal cost determined under clause (1) must be added an amount equal to the
dollar amount of the administrative expenses of the special fund of the association if more
than one fund is maintained by the association, or of the association if only one fund is
maintained, for the most recent year, multiplied by the factor of 1.035. The administrative
expenses are those authorized under section 69.80; and

(3) to the dollar amount of normal cost and expenses determined under clauses
(1) and (2) must be added an amount equal to the level annual dollar amount which
is sufficient to amortize the unfunded actuarial accrued liability as determined from
the actuarial valuation or survey of the fund, using an interest assumption set at the
applicable rate specified in section 356.215, subdivision 8, by that fund's amortization
date as specified in paragraph (d).

(d) deleted text begin The Virginia Fire Department Relief Association special fund amortization date
is December 31, 2010. The Fairmont Police Relief Association special fund amortization
date is December 31, 2020.
deleted text end The Bloomington Fire Department Relief Association
special fund amortization date is determined under section 356.216, clause (2). The
amortization date specified in this paragraph supersedes any amortization date specified in
any applicable special law.

(e) The minimum obligation of the municipality is an amount equal to the financial
requirements of the relief association reduced by the estimated amount of member
contributions from covered salary anticipated for the following calendar year and the
estimated amounts anticipated for the following calendar year from the applicable state aid
program established under sections 69.011 to 69.051 receivable by the relief association
after any allocation made under section 69.031, subdivision 5, paragraph (b), clause (2),
or 423A.01, subdivision 2, paragraph (a), clause (6), from the local police and salaried
firefighters' relief association amortization aid program established under section 423A.02,
subdivision 1
, from the supplementary amortization state-aid program established under
section 423A.02, subdivision 1a, and from the additional amortization state aid under
section 423A.02, subdivision 1b.

new text begin EFFECTIVE DATE. new text end

new text begin (a) For the Fairmont Police Relief Association, this section
is effective as of the date for consolidation set by the board of the Public Employees
Retirement Association in consultation with the State Board of Investment, but not later
than June 29, 2012.
new text end

new text begin (b) For the Virginia fire consolidation account, this section is effective on June 29,
2012, which is the effective date of merger.
new text end

Sec. 3.

Minnesota Statutes 2011 Supplement, section 353.668, subdivision 4, is
amended to read:


Subd. 4.

Transfer of assets; transfer of title to assets.

(a) On the effective date of
the consolidation under Laws 2011, First Special Session chapter 8, article 7, section 19,
the chief administrative officer of the Minneapolis Police Relief Association shall transfer
the entire assets of the special fund of the Minneapolis Police Relief Association other
than the health insurance account to the public employees police and fire retirement fund
at market value. Unless ineligible or inappropriate, the transfer must be in the form of
investment securities and must include any accounts receivable that are determined by the
State Board of Investment as being capable of being collected. An amount, in cash, must
be transferred by the city of Minneapolis equal to the market value recognized by the relief
association of investment securities that are determined by the executive director of the
State Board of Investment not to be in compliance with the requirements and limitations
set forth in sections 11A.09, 11A.14, 11A.23, and 11A.24 or not to be appropriate for
retention in light of the established investment objectives of the State Board of Investment
or of accounts receivable determined by the executive director of the State Board of
Investment as being incapable of being collected. Legal and beneficial title to assets that
are determined noncompliant or inappropriate securities or that are uncollectible accounts
receivable are transferred to the city of Minneapolis on the effective date of consolidation
under Laws 2011, First Special Session chapter 8, article 7, section 19. Any accounts
payable on the effective date of consolidation under Laws 2011, First Special Session
chapter 8, article 7, section 19, are an obligation of the public employees police and fire
retirement fund and reduce the asset value for purposes of subdivision 6. The transferred
assets must be deposited in the public employees police and fire retirement fund. The
amount of the health insurance account as of the date of the consolidation must remain
deposited in the financial institution retained by the former Minneapolis Police Relief
Association on May 1, 2011, and that financial institution must act as the custodian of the
account. new text begin The health insurance account may be transferred from the financial institution
that holds the account to a successor financial institution on June 30, 2012, under the
requirements of this subdivision and the terms of an agreement between the Minneapolis
Police Relief Association and the successor financial institution dated December 30,
2011, that provides for the transfer.
new text end The financial institution shall perform all trustee and
fiduciary duties with respect to the account as a condition to the retention of the account.
The executive director of the Minneapolis Police Relief Association, prior to the effective
date of consolidation, shall estimate three calendar years of the administrative expenses
related to the operation of the account and shall prepay those expenses from the account to
the financial institution prior to the effective date of consolidation. After the three-year
prepayment period, the beneficiaries of the account are responsible for the payment of the
administrative expenses related to the operation of the account.

(b) Upon the transfer of assets to the State Board of Investment under paragraph
(a), legal title to those transferred assets vests with the State Board of Investment on
behalf of the public employees police and fire retirement plan, and beneficial title to the
transferred assets remains with the former membership of the former Minneapolis Police
Relief Association.

(c) The public employees police and fire retirement plan and fund is the successor in
interest to all claims for or against the Minneapolis Police Relief Association. The public
employees police and fire retirement plan and fund is not liable for any claim against the
Minneapolis Police Relief Association, its governing board, or its administrative staff
acting in a fiduciary capacity, under chapter 356A or common law, which is founded upon
a claim of a breach of fiduciary duty if the act or acts constituting the claimed breach were
not undertaken in good faith. The public employees police and fire retirement plan may
assert any applicable defense to any claim in any judicial or administrative proceeding
that the Minneapolis Police Relief Association, its board, or its administrative staff would
otherwise have been entitled to assert, and the public employees police and fire retirement
plan may assert any applicable defense that it has in its capacity as a statewide agency.

(d) The Public Employees Retirement Association shall indemnify any former
fiduciary of the Minneapolis Police Relief Association consistent with the provisions of
section 356A.11. The indemnification may be effected by the purchase by the Public
Employees Retirement Association of reasonable fiduciary liability tail insurance for the
officers and directors of the former Minneapolis Police Relief Association. Consistent
with section 69.80, the relief association may purchase reasonable fiduciary liability tail
insurance for its officers and directors prior to the effective date of consolidation under
Laws 2011, First Special Session chapter 8, article 7, section 19.

(e) Office equipment and other physical assets of the special fund of the Minneapolis
Police Relief Association that are not needed by the Public Employees Retirement
Association may be sold by the special fund of the Minneapolis Police Relief Association
to the general fund of the Minneapolis Police Relief Association or to any successor
fraternal organization of the Minneapolis Police Relief Association at fair market value,
with the proceeds of that sale deposited in the public employees police and fire retirement
fund and included in the transferred asset value under subdivision 6.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

new text begin [353.669] CONSOLIDATION OF THE FAIRMONT POLICE RELIEF
ASSOCIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Membership transfer. new text end

new text begin On the effective date of consolidation, the
retired members, including surviving spouses, of the Fairmont Police Relief Association
are transferred to the public employees police and fire retirement plan, are no longer
members of the former Fairmont Police Relief Association, and are members of the public
employees police and fire retirement plan.
new text end

new text begin Subd. 2. new text end

new text begin Benefit liability transfer. new text end

new text begin The liability for the payment of retirement
annuities, service pensions, and survivor benefits of the retired members, service
pensioners, surviving spouses, and any other retirement benefit recipients of the former
Fairmont Police Relief Association, as contained in the transferred records of the former
relief association, is transferred to the public employees police and fire retirement plan on
the effective date of consolidation.
new text end

new text begin Subd. 3. new text end

new text begin Transfer of records. new text end

new text begin On the effective date of consolidation, the
chief administrative officer of the Fairmont Police Relief Association shall transfer all
records and documents relating to the special fund of the former Fairmont Police Relief
Association to the executive director of the Public Employees Retirement Association. To
the extent possible, original copies of all records and documents must be transferred.
new text end

new text begin Subd. 4. new text end

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

new text begin (a) On the effective date of
consolidation, the chief administrative officer of the Fairmont Police Relief Association
shall transfer the entire assets of the special fund of the Fairmont Police Relief Association
to the public employees police and fire retirement fund at market value. Unless ineligible
or inappropriate as determined by the State Board of Investment, the transfer must be
in the form of investment securities and must include any accounts receivable that are
determined by the State Board of Investment as being capable of being collected. The city
of Fairmont must transfer, in cash, an amount equal to the market value, as recognized by
the relief association of any investment securities that are determined by the executive
director of the State Board of Investment to be not in compliance with the requirements
and limitations set forth in sections 11A.09, 11A.14, 11A.23, and 11A.24, or to be
inappropriate for retention in light of the established investment objectives of the State
Board of Investment, or of any accounts receivable that are determined by the executive
director as being incapable of being collected. The legal and beneficial title to assets that
are determined to be noncompliant or inappropriate securities or that are determined to be
uncollectable accounts receivable are transferred from the relief association special fund
to the city of Fairmont as of the effective date of consolidation. Any accounts payable
of the special fund of the Fairmont Police Relief Association on the effective date of
consolidation, are an obligation of the public employees police and fire retirement fund
and reduce the value of the transferred relief association special fund assets for purposes
of subdivision 6. Assets transferred from the special fund of the Fairmont Police Relief
Association must be deposited in the public employees police and fire retirement fund
and must be managed by the State Board of Investment through the Minnesota combined
investment funds under section 11A.14.
new text end

new text begin (b) Upon the transfer of the assets to the management of the State Board of
Investment under paragraph (a), legal title to those transferred assets vests with the State
Board of Investment on behalf of the public employees police and fire retirement plan,
and beneficial title to the transferred assets remains with the former membership of the
former Fairmont Police Relief Association.
new text end

new text begin (c) The public employees police and fire retirement plan and fund is the successor in
interest to all claims for and against the Fairmont Police Relief Association. The public
employees police and fire retirement plan and fund is not liable for any claim against the
Fairmont Police Relief Association or its governing board acting in a fiduciary capacity
under chapter 356A or under common law which is founded upon a claim of a breach of
fiduciary duty if the act or acts constituting the claimed breach were not undertaken in
good faith. The public employees police and fire retirement plan may assert any applicable
defense to any claim in any judicial or administrative proceeding that the former Fairmont
Police Relief Association or its former governing board would otherwise have been
entitled to assert and the public employees police and fire retirement plan may assert any
applicable defense that it has in its capacity as a statewide agency.
new text end

new text begin (d) The Public Employees Retirement Association shall indemnify any former
fiduciary of the Fairmont Police Relief Association consistent with the provisions of
section 356A.11. The indemnification may be effected by the purchase by the Public
Employees Retirement Association of reasonable fiduciary liability tail insurance for the
officers and directors of the former Fairmont Police Relief Association.
new text end

new text begin Subd. 5. new text end

new text begin Benefits. new text end

new text begin (a) The annuities, service pensions, and other retirement benefits
of or attributable to retired members and surviving spouses of the Fairmont Police Relief
Association who had that status as of the effective date of consolidation, continue after
consolidation in the same amount and under the same terms as provided under Minnesota
Statutes 2000, sections 423.41 to 423.46, 423.48 to 423.59, 423.61, and 423.62; Laws
1963, chapter 423; Laws 1977, chapter 100; and Laws 1999, chapter 222, article 3, section
4, except as provided in paragraph (b).
new text end

new text begin (b) The annual base salary figure for pension and benefit determinations upon
consolidation and for the balance of calendar year 2012 is $106,666.67. After December
31, 2012, annual postretirement adjustments of pensions and benefits in force must be
calculated solely under section 356.415, subdivision 1c.
new text end

new text begin Subd. 6. new text end

new text begin Calculation of final funded status; employer contributions. new text end

new text begin (a) As of
the effective date of consolidation, the approved actuary retained by the Public Employees
Retirement Association under section 356.214 shall determine the final funded status of
the Fairmont Police Relief Association special fund. The final funded status is the present
value of future benefits payable from the Fairmont Police Relief Association as of the
effective date of consolidation after subtracting the market value of the transferred assets
of the Fairmont Police Relief Association as of the effective date of consolidation. The
present value of future benefits figure must be calculated using the applicable actuarial
assumptions for the public employees police and fire retirement plan specified in or
established under section 356.215. If there is a remainder present value of future benefits
amount, the city of Fairmont shall pay to the public employees police and fire retirement
fund an amount sufficient, on a level annual dollar basis, to amortize the calculated
remainder present value of future benefits amount by December 31, 2020. Payments shall
be made annually on or before December 31, beginning in 2012.
new text end

new text begin (b) If there are assets of the former Fairmont Police Relief Association in excess of
the present value of future benefits as of the effective date of consolidation, these assets
must be credited to an interest bearing suspense account within the public employees
police and fire retirement fund, must be used to offset any amount payable under paragraph
(c) until June 30, 2015, and, after June 30, 2015, must be paid to the city of Fairmont. The
suspense account must be credited with the same rate of investment return as the public
employees police and fire retirement fund.
new text end

new text begin (c) If, after the effective date of consolidation, the postretirement or preretirement
interest rate actuarial assumption applicable to the public employees police and fire
retirement plan under section 356.215, subdivision 8, is modified from the rates specified
in Minnesota Statutes 2010, section 356.215, subdivision 8, the remainder present value of
future benefits amount calculation under paragraph (a), updated for the passage of time,
must be revised and the amortization contribution by the city of Fairmont for the balance
of the amortization period must be redetermined and certified to the city of Fairmont.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective as of the date for consolidation set
by the board of the Public Employees Retirement Association in consultation with the
State Board of Investment, but not later than June 29, 2012.
new text end

Sec. 5.

new text begin [353.6691] MERGER OF THE VIRGINIA FIRE DEPARTMENT
RELIEF ASSOCIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Merger authorized. new text end

new text begin On the effective date of merger, the Virginia
fire department consolidation account of the Public Employees Retirement Association
under chapter 353A becomes a part of the public employees police and fire retirement plan
and fund governed by sections 353.63 to 353.659.
new text end

new text begin Subd. 2. new text end

new text begin Benefit liability transfer. new text end

new text begin All current and future liabilities of the Virginia
fire department consolidation account under chapter 353A are liabilities of the public
employees police and fire retirement plan and fund as of the effective date of merger and
the accrued benefits of the members of the consolidation account are the obligation of the
public employees police and fire retirement plan and fund.
new text end

new text begin Subd. 3. new text end

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

new text begin On the effective date of merger,
the assets of the Virginia fire department consolidation account must be transferred to the
public employees police and fire retirement fund. Upon transfer, the market value of the
assets of the consolidation account, less any amount of residual assets under subdivision 5,
are assets of the public employees police and fire fund as of the effective date of merger,
and the assets, excluding the distribution amount under subdivision 5, become an asset of
the public employees police and fire retirement fund. The public employees police and
fire retirement fund also must be credited as an asset with the amount of any receivable
assets from employer contributions under subdivision 5.
new text end

new text begin Subd. 4. new text end

new text begin Benefits. new text end

new text begin A person who received a service pension, a disability benefit, or a
survivor benefit from the Virginia fire department consolidation account for the month
prior to the effective date of merger and who has not previously elected postretirement
adjustments under section 356.415, subdivision 1c, rather than the postretirement
adjustment mechanism of the Virginia Fire Department Relief Association under section
353A.08, subdivision 1, may elect future postretirement adjustments under section
356.415, subdivision 1c, or the retention of the former Virginia Fire Department Relief
Association postretirement adjustment mechanism. The election must be made in writing
on a form prescribed by the executive director on or before September 1, 2012. Unless
modified by an election under this subdivision, the benefit plan election by any person or
on behalf of any person under section 353A.08 remains binding.
new text end

new text begin Subd. 5. new text end

new text begin Calculation of final funded status; employer contributions. new text end

new text begin (a) As of
the effective date of merger, the approved actuary retained by the Public Employees
Retirement Association under section 356.214 shall determine the final funded status of the
former Virginia Fire Department Relief Association special fund. The final funded status is
the present value of future benefits payable from the Virginia fire department consolidation
account as of the effective date of merger after subtracting the market value of the
transferred assets of the Virginia fire department consolidation account as of the effective
date of merger. The present value of future benefits figure must be calculated using the
applicable actuarial assumptions for the public employees police and fire retirement plan
specified in or established under section 356.215. If there is a remainder present value
of future benefits amount, the city of Virginia shall pay to the public employees police
and fire retirement fund an amount sufficient, on a level annual dollar basis, to amortize
the calculated remainder present value of future benefits amount by December 31, 2020.
Payments shall be made annually on or before December 31, beginning in 2012.
new text end

new text begin (b) If there are assets of the former Virginia fire department consolidation account in
excess of the present value of future benefits as of the effective date of merger, these assets
shall be credited to an interest bearing suspense account within the public employees police
and fire retirement fund until January 1, 2013. The suspense account must be credited with
the same rate of investment return as the public employees police and fire retirement fund.
new text end

new text begin (c) If, after the effective date of merger, the postretirement or preretirement interest
rate actuarial assumption applicable to the public employees police and fire retirement plan
under section 356.215, subdivision 8, is modified from the rates specified in Minnesota
Statutes 2010, section 356.215, subdivision 8, the remainder present value of future
benefits amount calculation under paragraph (a), updated for the passage of time, must be
revised and any amortization contribution by the city of Virginia for the balance of the
amortization period must be redetermined and certified to the city of Virginia.
new text end

new text begin (d) On January 1, 2013, one-half of any suspense account under paragraph (b)
must be paid as an additional ad hoc postretirement adjustment to the service pensioners,
disabilitants, and surviving spouses of the former Virginia fire consolidation account. The
additional ad hoc postretirement adjustment for each recipient is the total amount available
for the adjustment divided by the total number of recipients as of January 1, 2013, of the
former Virginia fire consolidation account. On January 1, 2014, if the suspense account
has earned investment income equal to or greater than the preretirement interest rate
assumption applicable to the public employees police and fire retirement plan under section
356.215, subdivision 8, the balance remaining of the suspense account under paragraph (b)
must be paid as an additional ad hoc postretirement adjustment to the service pensioners,
disabilitants, and surviving spouses of the former Virginia fire consolidation account,
divided by the total number of recipients as of January 1, 2014. Nothing in this paragraph
may be deemed to authorize the payment of a postretirement adjustment to an estate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective on June 29, 2012, which is the
effective date of merger.
new text end

Sec. 6.

Minnesota Statutes 2011 Supplement, section 356.215, subdivision 8, is
amended to read:


Subd. 8.

Interest and salary assumptions.

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

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

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

(1) single rate future salary increase assumption

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

(2) age-related select and ultimate future salary increase assumption or graded rate
future salary increase assumption

plan
future salary increase assumption
correctional state employees retirement plan
assumption D
State Patrol retirement plan
assumption C
local government correctional service retirement plan
assumption C
Duluth teachers retirement plan
assumption A
St. Paul teachers retirement plan
assumption B

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

The ultimate future salary increase assumption is:

age
A
B
C
D
16
8.00%
6.90%
7.7500%
7.2500%
17
8.00
6.90
7.7500
7.2500
18
8.00
6.90
7.7500
7.2500
19
8.00
6.90
7.7500
7.2500
20
6.90
6.90
7.7500
7.2500
21
6.90
6.90
7.1454
6.6454
22
6.90
6.90
7.0725
6.5725
23
6.85
6.85
7.0544
6.5544
24
6.80
6.80
7.0363
6.5363
25
6.75
6.75
7.0000
6.5000
26
6.70
6.70
7.0000
6.5000
27
6.65
6.65
7.0000
6.5000
28
6.60
6.60
7.0000
6.5000
29
6.55
6.55
7.0000
6.5000
30
6.50
6.50
7.0000
6.5000
31
6.45
6.45
7.0000
6.5000
32
6.40
6.40
7.0000
6.5000
33
6.35
6.35
7.0000
6.5000
34
6.30
6.30
7.0000
6.5000
35
6.25
6.25
7.0000
6.5000
36
6.20
6.20
6.9019
6.4019
37
6.15
6.15
6.8074
6.3074
38
6.10
6.10
6.7125
6.2125
39
6.05
6.05
6.6054
6.1054
40
6.00
6.00
6.5000
6.0000
41
5.90
5.95
6.3540
5.8540
42
5.80
5.90
6.2087
5.7087
43
5.70
5.85
6.0622
5.5622
44
5.60
5.80
5.9048
5.4078
45
5.50
5.75
5.7500
5.2500
46
5.40
5.70
5.6940
5.1940
47
5.30
5.65
5.6375
5.1375
48
5.20
5.60
5.5822
5.0822
49
5.10
5.55
5.5404
5.0404
50
5.00
5.50
5.5000
5.0000
51
4.90
5.45
5.4384
4.9384
52
4.80
5.40
5.3776
4.8776
53
4.70
5.35
5.3167
4.8167
54
4.60
5.30
5.2826
4.7826
55
4.50
5.25
5.2500
4.7500
56
4.40
5.20
5.2500
4.7500
57
4.30
5.15
5.2500
4.7500
58
4.20
5.10
5.2500
4.7500
59
4.10
5.05
5.2500
4.7500
60
4.00
5.00
5.2500
4.7500
61
3.90
5.00
5.2500
4.7500
62
3.80
5.00
5.2500
4.7500
63
3.70
5.00
5.2500
4.7500
64
3.60
5.00
5.2500
4.7500
65
3.50
5.00
5.2500
4.7500
66
3.50
5.00
5.2500
4.7500
67
3.50
5.00
5.2500
4.7500
68
3.50
5.00
5.2500
4.7500
69
3.50
5.00
5.2500
4.7500
70
3.50
5.00
5.2500
4.7500

(3) service-related ultimate future salary increase assumption

general state employees retirement plan of the
Minnesota State Retirement System
assumption A
general employees retirement plan of the Public
Employees Retirement Association
assumption B
Teachers Retirement Association
assumption C
public employees police and fire retirement plan
assumption D
service
length
A
B
C
D
1
10.75%
12.25%
12.00%
13.00%
2
8.35
9.15
9.00
11.00
3
7.15
7.75
8.00
9.00
4
6.45
6.85
7.50
8.00
5
5.95
6.25
7.25
6.50
6
5.55
5.75
7.00
6.10
7
5.25
5.45
6.85
5.80
8
4.95
5.15
6.70
5.60
9
4.75
4.85
6.55
5.40
10
4.65
4.65
6.40
5.30
11
4.45
4.45
6.25
5.20
12
4.35
4.35
6.00
5.10
13
4.25
4.15
5.75
5.00
14
4.05
4.05
5.50
4.90
15
3.95
3.95
5.25
4.80
16
3.85
3.85
5.00
4.80
17
3.75
3.75
4.75
4.80
18
3.75
3.75
4.50
4.80
19
3.75
3.75
4.25
4.80
20
3.75
3.75
4.00
4.80
21
3.75
3.75
3.90
4.70
22
3.75
3.75
3.80
4.60
23
3.75
3.75
3.70
4.50
24
3.75
3.75
3.60
4.50
25
3.75
3.75
3.50
4.50
26
3.75
3.75
3.50
4.50
27
3.75
3.75
3.50
4.50
28
3.75
3.75
3.50
4.50
29
3.75
3.75
3.50
4.50
30 or more
3.75
3.75
3.50
4.50

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

plan
payroll growth assumption
general state employees retirement plan of the
Minnesota State Retirement System
3.75%
correctional state employees retirement plan
4.50
State Patrol retirement plan
4.50
legislators retirement plan
4.50
judges retirement plan
4.00
general employees retirement plan of the Public
Employees Retirement Association
3.75
public employees police and fire retirement plan
3.75
local government correctional service retirement plan
4.50
teachers retirement plan
3.75
Duluth teachers retirement plan
4.50
St. Paul teachers retirement plan
5.00

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin (a) For the Fairmont Police Relief Association, this section
is effective as of the date for consolidation set by the board of the Public Employees
Retirement Association in consultation with the State Board of Investment, but not later
than June 29, 2012.
new text end

new text begin (b) For the Virginia fire consolidation account, this section is effective on June 29,
2012, which is the effective date of merger.
new text end

Sec. 7.

Laws 2002, chapter 392, article 1, section 8, is amended to read:


Sec. 8. REVISOR INSTRUCTIONS.

deleted text begin (a) In the next and subsequent editions of Minnesota Statutes, the revisor of statutes
shall not print Minnesota Statutes, sections 423.41 to 423.62, but shall denote those
sections as "[LOCAL, CITY OF FAIRMONT, POLICE PENSIONS.]."
deleted text end

deleted text begin (b)deleted text end In the next and subsequent editions of Minnesota Statutes, the revisor of statutes
shall, in each section indicated in column A, replace the cross-reference specified in
column B with the cross-reference set forth in column C:

Column A
Column B
Column C
69.021, subd. 10
69.77, subd. 2a
69.77, subd. 3
69.021, subd. 10
69.77, subd. 2b
69.77, subd. 4
69.021, subd. 10
69.77, subd. 2c
69.77, subd. 5
299A.465, subd. 5
424.03
Minnesota Statutes, 2000,
424.03
353A.07, subd. 6
69.77, subd. 2a
69.77, subd. 3
353A.09, subd. 4
69.77, subd. 2a
69.77, subd. 3
356.216
69.77, subd. 2b
69.77, subd. 4
356.219, subd. 2
69.77, subd. 2g
69.77, subd. 9
423.01, subd. 2
69.77, subd. 2b
69.77, subd. 4
423A.18
69.77, subd. 2i
69.77, subd. 11
423A.19, subd. 4
69.77, subd. 2i
69.77, subd. 11
423B.06, subd. 1
69.77, subd. 2a
69.77, subd. 3
423B.06, subd. 1
69.77, subd. 2b
69.77, subd. 4
423B.06, subd. 1
69.77, subd. 2c
69.77, subd. 5
423B.06, subd. 1
69.77, subd. 2d
69.77, subd. 6
423B.06, subd. 1
69.77, subd. 2e
69.77, subd. 7
423B.06, subd. 1
69.77, subd. 2f
69.77, subd. 8
423B.21, subd. 1
69.77, subd. 2b
69.77, subd. 4

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective as of the date for consolidation set
by the board of the Public Employees Retirement Association in consultation with the