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Minnesota Legislature

Office of the Revisor of Statutes

SF 3630

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

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

Current Version - as introduced

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A bill for an act
relating to retirement; volunteer firefighters; establishing a voluntary statewide
lump-sum retirement plan; making conforming changes to existing volunteer
firefighter laws; appropriating money; amending Minnesota Statutes 2006,
sections 69.011, subdivisions 1, 2, 4; 69.021, subdivisions 4, 7, 9; 69.031,
subdivision 1; 356.20, subdivision 2; 356.214, subdivision 1; 356.215,
subdivisions 8, 11; 356.401, subdivision 3; 356A.01, subdivision 24; 356B.05;
proposing coding for new law as Minnesota Statutes, chapter 424C.

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

ARTICLE 1

VOLUNTARY STATEWIDE LUMP-SUM

VOLUNTEER FIREFIGHTER RETIREMENT PLAN

Section 1.

new text begin [424C.01] VOLUNTARY STATEWIDE LUMP-SUM VOLUNTEER
FIREFIGHTER RETIREMENT PLAN; ESTABLISHMENT.
new text end

new text begin (a) A voluntary statewide lump-sum volunteer firefighter retirement plan is
established.
new text end

new text begin (b) The plan is governed by this chapter and the applicable provisions of chapters
356 and 356A.
new text end

Sec. 2.

new text begin [424C.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this chapter, unless the context clearly
indicates otherwise, the terms or phrases in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Actuary. new text end

new text begin "Actuary" means the approved actuary retained under section
356.214.
new text end

new text begin Subd. 3. new text end

new text begin Ancillary benefits. new text end

new text begin "Ancillary benefits" means any benefit other than a
service pension under section 424C.08, subdivision 6.
new text end

new text begin Subd. 4. new text end

new text begin Deferred service pension. new text end

new text begin "Deferred service pension" means the benefit
payable under section 424C.08, subdivision 4, to a former firefighter who was a plan
member, meets the vesting requirement of section 424C.08, subdivision 3, and has not yet
applied for or received a service pension from the plan.
new text end

new text begin Subd. 5. new text end

new text begin Deferred service pensioner. new text end

new text begin "Deferred service pensioner" means a former
firefighter and a former active plan member who is entitled to a deferred service pension.
new text end

new text begin Subd. 6. new text end

new text begin Executive director. new text end

new text begin "Executive director" means the executive director of
the Minnesota State Retirement System appointed under section 352.03, subdivision 4.
new text end

new text begin Subd. 7. new text end

new text begin Fire department. new text end

new text begin "Fire department" means the agency or department of a
municipality or an independent nonprofit firefighting corporation that is charged with the
prevention and suppression of fire and other related emergency activities.
new text end

new text begin Subd. 8. new text end

new text begin Fire state aid. new text end

new text begin "Fire state aid" means the amount of aid payable to a
municipality or an independent nonprofit firefighting corporation under sections 69.021,
subdivision 7, and 69.031, subdivision 1.
new text end

new text begin Subd. 9. new text end

new text begin Firetown. new text end

new text begin "Firetown" means the area serviced by any municipality having
a qualified fire department or a qualified incorporated fire department having a subsidiary
volunteer firefighters relief association.
new text end

new text begin Subd. 10. new text end

new text begin Former plan member. new text end

new text begin "Former plan member" means a person who was
an active plan member and is no longer an active plan member.
new text end

new text begin Subd. 11. new text end

new text begin Governing board. new text end

new text begin "Governing board" means the board of the voluntary
statewide lump-sum volunteer firefighter retirement plan established under section
424C.01.
new text end

new text begin Subd. 12. new text end

new text begin Minnesota fire incident report. new text end

new text begin "Minnesota fire incident report" means
the report to the Minnesota state fire marshal that complies with the reporting requirements
of the National Fire Data Center of the United States Fire Administration under the federal
Fire Prevention and Control Act of 1974, Public Law 93-498.
new text end

new text begin Subd. 13. new text end

new text begin Minnesota State Retirement System. new text end

new text begin "Minnesota State Retirement
System" means the retirement plan administration established under section 352.03.
new text end

new text begin Subd. 14. new text end

new text begin Municipality. new text end

new text begin "Municipality" means a city, town, township, joint powers
agency with a fire department, or an American Indian tribal government located on a
federally recognized American Indian reservation with a fire department.
new text end

new text begin Subd. 15. new text end

new text begin Normal retirement age. new text end

new text begin "Normal retirement age" means the age at which
a service pension is first payable under section 424C.08, subdivision 3.
new text end

new text begin Subd. 16. new text end

new text begin Plan member. new text end

new text begin "Plan member" means a person who is a volunteer
firefighter with a fire department in a municipality that has elected to be covered by the
plan under section 424C.03.
new text end

new text begin Subd. 17. new text end

new text begin Service pension. new text end

new text begin "Service pension" means the benefit specified in section
424C.08.
new text end

new text begin Subd. 18. new text end

new text begin State Board of Investment. new text end

new text begin "State Board of Investment" means the
state agency created by the Minnesota Constitution, article XI, section 8, and governed
by chapter 11A.
new text end

new text begin Subd. 19. new text end

new text begin Service credit. new text end

new text begin "Service credit" means the years and months of
active service as a volunteer firefighter rendered by a member of a fire department of a
municipality that has elected to be covered by the plan under section 424C.03 and is
certified by the fire chief of that fire department as meeting the requirements of the fire
department as good time.
new text end

new text begin Subd. 20. new text end

new text begin Vesting requirement. new text end

new text begin "Vesting requirement" means the period of service
credit required of an active plan member to gain a nonforfeitable entitlement to a service
pension from the plan at or after the attainment of the normal retirement age.
new text end

new text begin Subd. 21. new text end

new text begin Volunteer firefighter. new text end

new text begin "Volunteer firefighter" means a person who meets
the definition set forth in section 424A.001, subdivision 10.
new text end

Sec. 3.

new text begin [424C.03] PLAN COVERAGE; ELECTION.
new text end

new text begin Subdivision 1. new text end

new text begin Plan coverage. new text end

new text begin Unless otherwise provided for in law, all volunteer
firefighters who are serving a fire department in a municipality that has elected to have
retirement coverage by the voluntary statewide lump-sum volunteer firefighter retirement
plan are covered by the plan.
new text end

new text begin Subd. 2. new text end

new text begin Election of coverage. new text end

new text begin (a) An election of coverage for all volunteer
firefighters serving a fire department in a municipality may be initiated by:
new text end

new text begin (1) the board of trustees of the applicable volunteer firefighter relief association,
if one covers those volunteer firefighters;
new text end

new text begin (2) a group of active volunteer firefighters at least equal to 15 percent of the total
volunteer firefighter membership of the fire department if there is no applicable volunteer
firefighter relief association; or
new text end

new text begin (3) the governing body of the applicable municipality.
new text end

new text begin (b) The coverage election process under this section is initiated by a preliminary
approval of a resolution relating to the coverage by a majority vote of the board or
governing body and the filing with the executive director of:
new text end

new text begin (1) the resolution;
new text end

new text begin (2) a copy of the most recent financial report or statement of the relief association;
and
new text end

new text begin (3) the most recent fire department volunteer firefighter roster, including age and
volunteer firefighter service credit.
new text end

new text begin (c) Upon receipt of the resolution under paragraph (b), the executive director shall
have prepared an actuarial valuation of the actuarial accrued liability of the proposed
coverage group calculated by the actuary for the benefit level applicable to the fire
department under section 424C.08 and an evaluation of the fire department investment
portfolio, if any, by the State Board of Investment. The executive director shall report
the results of the special actuarial valuation and of the special investment analysis to the
applicable relief association and the applicable municipality.
new text end

new text begin (d) Upon receipt of the reports from the executive director, the coverage election is
approved upon a majority vote of the board of the applicable volunteer firefighter relief
association, if one exists, or upon a majority vote of the active volunteer firefighters of the
fire department if no volunteer firefighter relief association exists, and upon a majority
vote of the governing board of the municipality.
new text end

new text begin (e) If the approvals do not occur within 180 days of the receipt of the reports from
the executive director, the question may not reoccur for a period of 365 days following
that date.
new text end

new text begin Subd. 3. new text end

new text begin Effective date of coverage. new text end

new text begin Coverage by the volunteer statewide
lump-sum volunteer firefighter retirement plan is effective on the first day of the first
month following the date on which the executive director certifies to the governing board
of the municipality and to the board of trustees of the relief association applicable to
that municipality, if one exists.
new text end

Sec. 4.

new text begin [424C.04] DISESTABLISHMENT OF LOCAL RELIEF ASSOCIATION
SPECIAL FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Special fund disestablishment. new text end

new text begin (a) On the date immediately prior to
the effective date of the coverage change under section 424C.03, subdivision 3, the special
fund of the applicable volunteer firefighter relief association, if one exists, ceases to exist
as a pension fund of the association and legal title to the assets of the special fund transfers
to the State Board of Investment, with the beneficial title to the assets of the special fund
remaining in the applicable volunteer firefighters.
new text end

new text begin (b) If the market value of the special fund of the volunteer firefighter relief
association for which retirement coverage changed under this chapter declines in the
interval between the date of the most recent financial report or statement under section
424C.03, subdivision 2, and the special fund disestablishment date, the applicable
municipality shall transfer an additional amount to the State Board of Investment equal to
that decline. If more than one municipality utilized the fire department, the municipalities
shall allocate the additional transfer amount among the various applicable municipalities
one-half in proportion to the population of each municipality and one-half in proportion
to the market value of each municipality.
new text end

new text begin Subd. 2. new text end

new text begin Other relief association changes. new text end

new text begin In addition to the transfer and
disestablishment of the special fund under subdivision 1, notwithstanding any provisions
of chapter 424A or 424B to the contrary, upon the effective date of the change in volunteer
firefighter retirement coverage, the following changes must occur with respect to the
applicable volunteer firefighter relief association:
new text end

new text begin (1) the relief association board of trustees membership is five, comprised of the fire
chief of the fire department and four trustees elected by and from the relief association
membership;
new text end

new text begin (2) the relief association may only maintain a general fund, which continues to
be governed by section 424A.06;
new text end

new text begin (3) the relief association is not authorized to receive the proceeds of any state aid or
to receive any municipal funds; and
new text end

new text begin (4) the relief association may not pay any service pension or benefit that was not
authorized as a general fund disbursement under the articles of incorporation or bylaws of
the relief association in effect prior to the initiation of the coverage transfer process.
new text end

Sec. 5.

new text begin [424C.05] STATEWIDE PLAN GOVERNING BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Function. new text end

new text begin The voluntary statewide lump-sum volunteer firefighter
retirement plan must be managed and administered by the governing board under
subdivision 2 and by the executive director.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The board of the voluntary statewide lump-sum
volunteer firefighter retirement plan consists of seven persons. The members of the board
must be appointed by the governor, as follows:
new text end

new text begin (1) board seat A: a firefighter from a firetown with a population under 5,000;
new text end

new text begin (2) board seat B: a firefighter from a firetown with a population greater than 5,000
and less than 9,001;
new text end

new text begin (3) board seat C: a firefighter from a firetown with a population greater than 9,000
and less than 20,000;
new text end

new text begin (4) board seat D: a firefighter from a firetown with a population greater than 19,999;
new text end

new text begin (5) board seat E: a person from a list of three candidates submitted by the governing
board of the League of Minnesota Cities;
new text end

new text begin (6) board seat F: a person from a list of three candidates submitted by the governing
board of the Minnesota Association of Townships; and
new text end

new text begin (7) board seat G: a person who is a member of the public and is knowledgable
in pension matters.
new text end

new text begin (b) The members of the board must serve staggered terms. Board members holding
seats A, C, and E have an initial term of one year, expiring June 30, 2009. Board members
holding seats B and F have an initial term of two years, expiring June 30, 2010. Board
members holding seats D and G have an initial term of three years, expiring June 30, 2011.
Subsequent terms for all board seats are three years. Terms continue to the designated
expiration date or until their successor is appointed, whichever is later.
new text end

new text begin (c) Service as a member of the board is uncompensated by the state or the retirement
fund and does not qualify for the reimbursement of expenses or for any per diem
allowance.
new text end

new text begin (d) A vacancy on the board must be filled by an appointment by the governor in
accord with any requirement specified in paragraph (a).
new text end

new text begin Subd. 3. new text end

new text begin Board duties. new text end

new text begin (a) The board shall:
new text end

new text begin (1) elect a chair;
new text end

new text begin (2) establish rules necessary or convenient for the administration of the plan
consistent with this chapter, chapters 356 and 356A, and any other limitation or
requirement of law;
new text end

new text begin (3) establish a budget for the administration of the plan with the advice of the
commissioner of finance;
new text end

new text begin (4) consider and dispose of or take any other section consistent with law that the
board deems necessary to resolve issues related to the plan; and
new text end

new text begin (5) oversee the administration of the plan by the executive director.
new text end

new text begin (b) With respect to the duties undertaken by the executive director under this chapter,
section 352.03, subdivision 4, clause (5), does not apply.
new text end

new text begin Subd. 4. new text end

new text begin Fiduciary obligation. new text end

new text begin The board and the executive director shall undertake
their activities in a manner consistent with the applicable provisions of chapter 356A.
new text end

new text begin Subd. 5. new text end

new text begin Legal advisor; attorney general. new text end

new text begin (a) The attorney general is the legal
advisor of the board and the executive director with respect to the plan.
new text end

new text begin (b) The board may sue or be sued or petitional under this section in the name of
the board of the system.
new text end

new text begin (c) In actions by the board or against the board, the board must be represented
by the attorney general.
new text end

new text begin (d) Venue of actions related to the plan or the board is in the court for the first
judicial district unless the action is an appeal to the Court of Appeals under section 356.95.
new text end

new text begin Subd. 6. new text end

new text begin Information from municipalities and fire departments. new text end

new text begin Municipalities
and fire departments with volunteer firefighters covered by the plan shall provide all
relevant information and records that the board or the executive director requires to
perform their duties.
new text end

Sec. 6.

new text begin [424C.06] TREASURER.
new text end

new text begin (a) The commissioner of finance is the ex officio treasurer of the retirement fund of
the retirement plan.
new text end

new text begin (b) The general bond to the state covers all liability for actions as treasurer of the
fund.
new text end

new text begin (c) Funds of the retirement plan received by the commissioner of finance must be set
aside in the state treasury to the credit of the retirement fund. The provisions of section
352.05 govern the processing of these funds.
new text end

Sec. 7.

new text begin [424C.07] FUND INVESTMENT; STATE BOARD OF INVESTMENT.
new text end

new text begin (a) The executive director shall, from time to time, certify to the executive director
of the State Board of Investment any portions of the retirement fund that, in the judgment
of the executive director, are not required for immediate use.
new text end

new text begin (b) Assets transferred to the State Board of Investment must be invested in the
combined investment funds under section 11A.14 and a portion of the fund may be
transferred to the Minnesota postretirement investment fund under section 11A.18.
new text end

Sec. 8.

new text begin [424C.08] SERVICE PENSION; BENEFIT CATEGORIES.
new text end

new text begin Subdivision 1. new text end

new text begin Lump-sum service pensions. new text end

new text begin The service pension to be provided
by the retirement plan is a lump-sum service pension. The lump-sum service pension
payable to a retiring volunteer firefighter is the amount credited to the firefighter during
active service since the applicable municipality and volunteer firefighter relief association,
if any, elected coverage by the plan based on the service pension level under subdivision 2
applicable to each period of service.
new text end

new text begin Subd. 2. new text end

new text begin Lump-sum benefit levels. new text end

new text begin (a) Based on the magnitude of fire department
calls and fire state aid under paragraph (b), an active firefighter of a fire department
covered by the plan is entitled to the applicable lump-sum service pension amount for
each year of good time service credit or 1/12th fraction of the amount for each month
of good time service credit. If the magnitude of fire department calls or the magnitude
of fire state aid equal or exceed an amount specified in paragraph (c), the combined
amount is the applicable lump-sum benefit level. If the magnitude amount is at least 85
percent of the specified magnitude amount for the next higher lump-sum benefit level,
the applicable municipality may elect to provide the higher lump-sum benefit level by
filing with the executive director a resolution to that effect approved by the governing
body of the municipality.
new text end

new text begin (b) Annually, before April 1, the state fire marshal shall calculate the three-year
average number of calls to which each fire department with volunteer firefighters
covered by the plan responded as reported in the Minnesota Fire Information Report and
shall certify that calculation to the executive director. Based on the state fire marshal
certification and the most recent amount of fire state aid attributable to the applicable
fire department as certified by the commissioner of revenue, the executive director shall
credit each active volunteer firefighter with the applicable service pension amount for that
calendar year or portion of that calendar year.
new text end

new text begin (c) The lump-sum service pension amounts are as follows:
new text end

new text begin average number of fire
department calls
new text end
new text begin call portion service pension
new text end
new text begin .
new text end
new text begin $500 per year
new text end
new text begin .
new text end
new text begin $750 per year
new text end
new text begin .
new text end
new text begin $1,000 per year
new text end
new text begin .
new text end
new text begin $1,250 per year
new text end
new text begin .
new text end
new text begin $1,500 per year
new text end
new text begin .
new text end
new text begin $1,750 per year
new text end
new text begin .
new text end
new text begin $2,000 per year
new text end
new text begin plus
new text end
new text begin fire state aid
new text end
new text begin fire state aid portion service pension
new text end
new text begin .
new text end
new text begin $500 per year
new text end
new text begin .
new text end
new text begin $750 per year
new text end
new text begin .
new text end
new text begin $1,000 per year
new text end
new text begin .
new text end
new text begin $1,250 per year
new text end
new text begin .
new text end
new text begin $1,500 per year
new text end
new text begin .
new text end
new text begin $1,750 per year
new text end
new text begin .
new text end
new text begin $2,000 per year
new text end

new text begin Subd. 3. new text end

new text begin Service pension eligibility. new text end

new text begin (a) An active volunteer firefighter associated
with a fire department covered by the retirement plan who terminates on-call firefighter
employment by or active firefighter service for the fire department, attains the age of at
least 50 years, or if the municipality has designated a later volunteer firefighter minimum
retirement age by governing body resolution, the designated minimum retirement age,
has at least five years of service credited by the plan, and has at least five years of service
rendered since first becoming covered by the retirement plan is entitled, upon written
application on a form prescribed by the executive director, to a lump-sum service pension
from the plan.
new text end

new text begin (b) If the retiring firefighter has rendered at least 20 years of service credit covered
by the plan or at least 20 years of combined service credit covered by the plan and service
credit in the prior applicable volunteer firefighter relief association, as certified by the
volunteer firefighter relief association secretary prior to the disestablishment of the relief
association special fund, the retiring firefighter is eligible for an unreduced service pension.
new text end

new text begin (c) If the retiring firefighter has rendered less than the 20 years of service credit
covered by the plan or combined service credit covered by the plan and service credit
in the prior applicable volunteer firefighter relief association under paragraph (b), the
retiring firefighter is eligible for the following nonforfeitable percentage of the credited
service pension amount:
new text end

new text begin completed years of service or combined
service credit
new text end
new text begin nonforfeitable percentage of credited
service pension amount
new text end
new text begin 5
new text end
new text begin 40 percent
new text end
new text begin 6
new text end
new text begin 44 percent
new text end
new text begin 7
new text end
new text begin 48 percent
new text end
new text begin 8
new text end
new text begin 52 percent
new text end
new text begin 9
new text end
new text begin 56 percent
new text end
new text begin 10
new text end
new text begin 60 percent
new text end
new text begin 11
new text end
new text begin 64 percent
new text end
new text begin 12
new text end
new text begin 68 percent
new text end
new text begin 13
new text end
new text begin 72 percent
new text end
new text begin 14
new text end
new text begin 76 percent
new text end
new text begin 15
new text end
new text begin 80 percent
new text end
new text begin 16
new text end
new text begin 84 percent
new text end
new text begin 17
new text end
new text begin 88 percent
new text end
new text begin 18
new text end
new text begin 92 percent
new text end
new text begin 19
new text end
new text begin 96 percent
new text end

new text begin Subd. 4. new text end

new text begin Deferred service pension. new text end

new text begin (a) A volunteer firefighter covered by the plan
is entitled to a deferred service pension if the person:
new text end

new text begin (1) has completed at least five years of service covered by the plan; and
new text end

new text begin (2) has terminated on-call firefighter employment by the applicable fire department
or has ceased rendering active firefighting service for the applicable fire department before
age 50 or the minimum retirement age designated by the municipality under subdivision
3, if later.
new text end

new text begin (b) The deferred service pension is payable when the former volunteer firefighter has
attained at least age 50 or the applicable minimum retirement age and applies for a service
pension in writing on a form prescribed by the executive director.
new text end

new text begin (c) The deferred service pension amount is the service pension amount credited
to the firefighter under subdivision 2, adjusted for service credit less than 20 years as
provided in subdivision 3, and without any interest or investment performance amount.
new text end

new text begin Subd. 5. new text end

new text begin Installment payments. new text end

new text begin (a) A retiring firefighter covered by the plan may
elect to receive the service pension in installment payments in lieu of a single lump-sum
service pension payment.
new text end

new text begin (b) The installment payment election must be made in writing on a form prescribed
by the executive director, must be filed no later than 30 days before the service pension
payment date, and is irrevocable.
new text end

new text begin (c) The service pension may be paid in three installments, four installments, or five
installments, as elected by the retiring firefighter.
new text end

new text begin (d) The installment payment amounts must be determined so that the present value
of the aggregate installment payments, computed at an interest rate of five percent,
compounded annually, is equal to the amount of the single lump-sum payment that would
have been made had no installment payments been elected.
new text end

new text begin Subd. 6. new text end

new text begin Ancillary benefits. new text end

new text begin (a) If a volunteer firefighter has rendered sufficient
service credit to be eligible for a future payment of a service pension, but no service
pension under subdivisions 2 and 3 or subdivision 4 has been paid, an amount equal
to the service pension under subdivision 3 may be paid as an ancillary benefit. Only
one ancillary benefit may be paid.
new text end

new text begin (b) If the active volunteer firefighter becomes physically or mentally incapable of
rendering volunteer firefighter services due to a medically determinable injury or illness
and terminates service as a firefighter as a result of that injury or illness, the person may
apply for a disability benefit in lieu of any service pension under the plan and is entitled to
receive an immediate disability benefit in an amount equal to the earned service pension
under subdivisions 2 and 3 or subdivision 4, whichever applies.
new text end

new text begin (c) If an active volunteer firefighter dies or if a former volunteer firefighter dies
without receiving a service pension or disability benefit under this section, the survivor
of the person is entitled to receive an immediate death benefit in an amount equal to the
earned service pension under subdivisions 2 and 3 or subdivision 4, whichever applies.
The survivor under this paragraph is the legally married spouse of the firefighter, or if
none, the surviving child or surviving children jointly of the firefighter, or if none, the
beneficiary designated by the firefighter, or if none, the estate of the firefighter.
new text end

new text begin Subd. 7. new text end

new text begin Purchase of annuity contracts. new text end

new text begin The executive director may purchase an
annuity contract on behalf of a retiring firefighter in an amount equal to the lump sum
service pension payable under subdivision 3 if the purchase was requested by the retiring
firefighter in writing on a form prescribed by the executive director. The annuity contract
must be purchased from an insurance carrier which is licensed to do business in this
state and the annuity contract must be approved by the commissioner of commerce. If
purchased, the annuity contract is in lieu of any service pension or other benefit from the
retirement plan. The annuity contract may be purchased at any time after the volunteer
firefighter discontinues active service, but the annuity contract must stipulate that no
annuity amounts are payable before the former volunteer firefighter attains the age of 50.
new text end

new text begin Subd. 8. new text end

new text begin Transfer to individual retirement account. new text end

new text begin Upon receipt of a
determination that the retirement plan is a qualified pension plan under section 401(a) of
the Internal Revenue Code, as amended, the executive director, upon request, shall transfer
the service pension amount under subdivision 3 of a former volunteer firefighter who
has terminated active firefighting services covered by the plan to the person's individual
retirement account under section 408(a) of the Internal Revenue Code, as amended. The
transfer request must be in writing on a form prescribed by the executive director and
must be filed by the former volunteer firefighter who has sufficient service credit to be
entitled to a service pension or, following the death of a participating active firefighter,
must be filed by the deceased firefighter's surviving spouse.
new text end

Sec. 9.

new text begin [424C.09] SERVICE CREDIT FOR UNIFORMED SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Subject to restrictions stated in this section, a
volunteer firefighter who serves a fire department that is covered by the retirement plan
and who is absent from firefighting service due to service in the uniformed services, as
defined in United States Code, title 38, section 4303(13), may obtain service credit for that
military service period, not to exceed five years, unless a longer period is required under
United States Code, title 38, section 4312.
new text end

new text begin Subd. 2. new text end

new text begin Limitations. new text end

new text begin (a) To be eligible for service credit under this section, the
volunteer firefighter must return to firefighting service covered by the retirement plan
upon discharge from service in the uniformed service within the time frame required in
United States Code, title 38, section 4312(e).
new text end

new text begin (b) Service credit is not authorized if the firefighter separates from uniformed service
with a dishonorable or bad conduct discharge or under other than honorable conditions.
new text end

new text begin (c) Service credit is not authorized if the firefighter fails to provide notice to the fire
department that the individual is leaving to provide service in the uniformed service,
unless it is not feasible to provide that notice due to the emergency nature of the situation.
new text end

Sec. 10.

new text begin [424C.10] SUPPLEMENTAL VOLUNTEER FIREFIGHTER BENEFIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (1) "active volunteer firefighter" means a person who regularly renders fire
suppression service for a municipal fire department or an independent nonprofit
firefighting corporation, who has met the statutory and other requirements for retirement
plan membership, and who has been a fully qualified member of the retirement plan for
at least one month; and
new text end

new text begin (2) "deferred volunteer firefighter" means a former active volunteer firefighter who
terminated active firefighting service, has sufficient service credit from the retirement plan
to be entitled to a service pension, but has not applied for or has not received the service
pension.
new text end

new text begin (3) "qualified recipient" means an individual who receives a lump-sum distribution
of pension or retirement benefits from the retirement plan for service that the individual
has performed as a volunteer firefighter;
new text end

new text begin (4) "survivor of a deceased active or deferred volunteer firefighter" means the legally
married spouse of a deceased volunteer firefighter, or, if none, the surviving minor child or
minor children of a deceased volunteer firefighter;
new text end

new text begin Subd. 2. new text end

new text begin Payment of supplemental benefit. new text end

new text begin (a) Upon the payment by a firefighters
relief association of a lump-sum distribution to a qualified recipient, the retirement plan
must pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the
contrary, the retirement plan may pay the supplemental benefit to the qualified recipient
from the retirement fund. The amount of this benefit equals ten percent of the regular lump
sum distribution that is paid on the basis of the recipient's service as a volunteer firefighter.
In no case may the amount of the supplemental benefit exceed $1,000. A supplemental
benefit under this paragraph may not be paid to a survivor of a deceased active or deferred
volunteer firefighter in that capacity.
new text end

new text begin (b) Upon the payment by the retirement plan of a lump-sum survivor benefit to a
survivor of a deceased active volunteer firefighter or of a deceased deferred volunteer
firefighter, the retirement plan must pay a supplemental survivor benefit to the survivor
of the deceased active or deferred volunteer firefighter from the retirement fund. The
amount of the supplemental survivor benefit is 20 percent of the survivor benefit, but not
to exceed $2,000.
new text end

new text begin (c) An individual may receive a supplemental benefit under paragraph (a) or
paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer
firefighter benefit.
new text end

new text begin Subd. 3. new text end

new text begin State reimbursement. new text end

new text begin (a) By February 15 of each year, the executive
director, on behalf of the retirement fund, shall apply to the commissioner of revenue for
state reimbursement of the amount of supplemental benefits paid under subdivision 2
during the preceding calendar year. By March 15, the commissioner shall reimburse the
retirement fund for the amount of the supplemental benefits paid to qualified recipients
and to survivors of deceased active or deferred volunteer firefighters.
new text end

new text begin (b) The commissioner of revenue shall prescribe the form of and supporting
information that must be supplied as part of the application for state reimbursement.
new text end

new text begin (c) The reimbursement payment must be deposited in the retirement fund.
new text end

new text begin (d) A sum sufficient to make the payments is appropriated from the general fund
to the commissioner of revenue.
new text end

new text begin Subd. 4. new text end

new text begin In lieu of income tax exclusion. new text end

new text begin (a) The supplemental benefit provided
by this section is in lieu of the state income tax exclusion for lump-sum distributions of
retirement benefits paid to volunteer firefighters.
new text end

new text begin (b) If the law is modified to exclude or exempt volunteer firefighters' lump-sum
distributions from state income taxation, the supplemental benefits under this section
may no longer be paid beginning with the first calendar year in which the exclusion or
exemption is effective. This subdivision does not apply to exemption of all or part of a
lump-sum distribution under section 290.032 or 290.0802.
new text end

new text begin Subd. 5. new text end

new text begin Coordination with section 424A.10. new text end

new text begin If a supplemental benefit is payable
to an individual under this section and section 424A.10, the supplemental benefit payable
by the retirement plan may not exceed the unpaid balance of the applicable limit under
section 424A.10 and the state reimbursement of the retirement fund for a supplemental
benefit from the retirement plan may not exceed that amount.
new text end

Sec. 11.

new text begin [424C.11] RETIREMENT FUND; FUNDING.
new text end

new text begin Subdivision 1. new text end

new text begin Fund created. new text end

new text begin (a) A special fund, the statewide volunteer firefighter
retirement fund, is created in the state treasury.
new text end

new text begin (b) Assets of volunteer firefighter relief association special funds electing to be
transferred to the plan, fire state aid related to participating fire departments, supplemental
fire state aid related to covered firefighters, municipal contributions, and investment
earnings on accumulated fund assets must be deposited in the statewide volunteer
firefighter retirement fund.
new text end

new text begin (c) Service pensions, supplemental benefits, ancillary benefits if no service pension
is payable, and administrative expenses must be paid from the statewide volunteer
firefighter retirement fund.
new text end

new text begin (d) The fund must be invested in the combined investment fund under section
11A.14.
new text end

new text begin Subd. 2. new text end

new text begin Transfers of relief association special fund assets. new text end

new text begin (a) Following the
election of coverage by the retirement plan under section 424C.03, on or before the
effective date of coverage under section 424C.03, subdivision 3, and after satisfying any
accounts payable from the special fund, the president, secretary, and treasurer of the
volunteer firefighter relief association shall direct the depository bank or other holder of
legal title of the applicable volunteer firefighter relief association special fund assets to
convey those assets to the executive director for deposit in the retirement fund and execute
the necessary documentation to authorize or order that conveyance.
new text end

new text begin (b) If the transferred assets include investment securities that are determined by the
executive director of the State Board of Investment as being ineligible or inappropriate for
investment by the State Board of Investment, the executive director of the State Board of
Investment shall liquidate those ineligible or inappropriate investment securities as soon
as practicable following the transfer and deposit the proceeds of the sale in the fund.
new text end

new text begin (c) Following the transfer of special fund assets, the actuary shall calculate the
actuarial accrued liability attributable to the municipality for past service by volunteer
firefighters with subsequent coverage by the retirement plan at the service pension amount
applicable to those firefighters. If the transferred special fund assets are greater than
the calculated actuarial accrued liability, the municipality has a credit to offset against
future regular municipal contributions under subdivision 5. If the transferred special fund
assets are less than the calculated actuarial accrued liability, the municipality must pay
an additional municipal contribution under subdivision 6.
new text end

new text begin Subd. 3. new text end

new text begin Fire state aid deposit. new text end

new text begin (a) Notwithstanding any provision of sections
69.011 to 69.051, for firetowns with volunteer firefighters covered by the retirement plan,
the commissioner of revenue shall transmit the fire state aid, including any minimum
fire state aid, calculated for the applicable municipality to the retirement fund rather
than to the municipality.
new text end

new text begin (b) If a municipality fails to file for fire state aid or fails to qualify for fire state aid
under section 69.011, and consequently no fire state aid on account of that municipality is
deposited in the retirement fund, the municipality shall pay an amount equal to the fire
state aid for which the municipality would have otherwise qualified. The municipality
shall pay the fire state aid equivalent amount on or before November 1.
new text end

new text begin Subd. 4. new text end

new text begin Supplemental benefit reimbursement. new text end

new text begin Notwithstanding any provisions
of section 424C.10 to the contrary, a state reimbursement of a volunteer firefighter
supplemental benefit must be deposited in the retirement fund.
new text end

new text begin Subd. 5. new text end

new text begin Regular municipal contribution. new text end

new text begin (a) The municipality in which a fire
department served by volunteer firefighters covered by the retirement plan is located
must make a regular municipal contribution.
new text end

new text begin (b) The regular municipal contribution amount is a function of the lump-sum service
pension amount applicable to the respective volunteer firefighters, as follows:
new text end

new text begin total lump-sum service pension amount
new text end
new text begin regular municipal contribution amount
new text end
new text begin Less than $1,500 per year
new text end
new text begin $200 per year per firefighter
new text end
new text begin More than $1,499 and less
than $2,000 per year
new text end
new text begin $300 per year per firefighter
new text end
new text begin More than $1,999 and less
than $2,500 per year
new text end
new text begin $400 per year per firefighter
new text end
new text begin More than $2,499 and less
than $3,000 per year
new text end
new text begin $500 per year per firefighter
new text end
new text begin More than $2,999 and less
than $3,500 per year
new text end
new text begin $600 per year per firefighter
new text end
new text begin More than $3,499 and less
than $4,000 per year
new text end
new text begin $700 per year per firefighter
new text end
new text begin More than $3,999 per year
new text end
new text begin $800 per year per firefighter
new text end

new text begin (c) The regular municipal contribution is payable June 15 annually.
new text end

new text begin Subd. 6. new text end

new text begin Additional municipal contribution. new text end

new text begin (a) If the municipality had transferred
volunteer firefighter relief association special fund assets in an amount less than the
actuarial accrued liability for the associated volunteer firefighters at the service pension
level applicable following the coverage transferral date, the municipality must also make
an additional annual municipal contribution.
new text end

new text begin (b) The amount of the additional annual municipal contribution is the annual dollar
amount required to amortize the transferred asset shortfall amount over a period of five
years from the date of the asset transfer, calculated on a level dollar amortization basis and
assuming an annual interest rate of 8.5 percent.
new text end

new text begin (c) The additional annual municipal contribution is payable on the anniversary
date of the asset transfer.
new text end

Sec. 12. new text beginAPPROPRIATION.
new text end

new text begin $150,000 is appropriated to the Minnesota State Retirement System for deposit in
the statewide volunteer firefighter retirement fund, once it is created, and for disbursement
to meet the expenses of the retirement plan and fund created by this article.
new text end

Sec. 13. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 12 are effective July 1, 2008.
new text end

ARTICLE 2

CONFORMING AMENDMENTS

Section 1.

Minnesota Statutes 2006, section 69.011, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

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

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

(b) "Municipality" means:

(1) a home rule charter or statutory city;

(2) an organized town;

(3) a park district subject to chapter 398;

(4) the University of Minnesota;

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

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

(7) for purposes of the police state aid program only, the Metropolitan Airports
Commission with respect to peace officers covered under chapter 422A; and

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

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

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

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

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

(g) "Peace officer" means any person:

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

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

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

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

(5) who is a member of a local police relief association to which section 69.77
applies, the State Patrol retirement plan, the public employees police and fire fund, or the
Minneapolis Employees Retirement Fund.

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

(i) "Retirement benefits other than a service pension" means any disbursement
authorized under section 424A.05, subdivision 3, clauses (2), (3), and (4).

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

new text begin (k) "Voluntary statewide volunteer firefighter retirement plan" means the retirement
plan for volunteer firefighters established in article 1, section 2.
new text end

Sec. 2.

Minnesota Statutes 2006, section 69.011, subdivision 2, is amended to read:


Subd. 2.

Qualification for fire or police state aid.

(a) In order to qualify to
receive fire state aidnew text begin or to have its fire state aid transmitted to the voluntary statewide
volunteer firefighter retirement plan
new text end, on or before March 15 annually, in conjunction with
the financial report required pursuant to section 69.051, the clerk of each municipality
having a duly organized fire department as provided in subdivision 4, or the secretary of
each independent nonprofit firefighting corporation having a subsidiary incorporated
firefighters' relief association new text beginor having coverage by the voluntary statewide volunteer
firefighter retirement plan,
new text endwhichever is applicable, and the fire chief, shall jointly
certify the existence of the municipal fire department or of the independent nonprofit
firefighting corporation, whichever is applicable, which meets the minimum qualification
requirements set forth in this subdivision, and the fire personnel and equipment of the
municipal fire department or the independent nonprofit firefighting corporation as of the
preceding December 31. Certification deleted text beginshalldeleted text end new text beginmust new text endbe made to the commissioner on a form
prescribed by the commissioner and deleted text beginshalldeleted text end new text beginmust new text endinclude any other facts the commissioner
may require. The certification deleted text beginshalldeleted text end new text beginmust new text endbe made to the commissioner in duplicate.
Each copy of the certificate deleted text beginshalldeleted text end new text beginmust new text endbe duly executed and deemed an original. The
commissioner deleted text beginshalldeleted text end new text beginmust new text endforward one copy to the auditor of the county wherein the fire
department is located and retain one copy.

(b) On or before March 15 annually the clerk of each municipality having a duly
organized police department and having a duly incorporated relief association shall certify
that fact to the county auditor of the county where the police department is located and to
the commissioner on a form prescribed by the commissioner together with the other facts
the commissioner or auditor may require.

Except as provided in subdivision 2b, on or before March 15 annually, the clerk of
each municipality and the auditor of each county employing one or more peace officers
as defined in subdivision 1, clause (g), shall certify the number of such peace officers to
the commissioner on forms prescribed by the commissioner. Credit for officers employed
less than a full year shall be apportioned. Each full month of employment of a qualifying
officer during the calendar year shall entitle the employing municipality or county to credit
for 1/12 of the payment for employment of a peace officer for the entire year. For purposes
of sections 69.011 to 69.051, employment of a peace officer shall commence when the
peace officer is entered on the payroll of the respective municipal police department or
county sheriff's department. No peace officer shall be included in the certification of the
number of peace officers by more than one municipality or county for the same month.

Sec. 3.

Minnesota Statutes 2006, section 69.011, subdivision 4, is amended to read:


Subd. 4.

Qualification for state aid.

Any municipality in this state having for more
than one year an organized fire department and officially established by the governing
body of the municipality or an independent nonprofit fire fighting corporation created
under the nonprofit corporation act of this state and operating exclusively for fire fighting
purposes and providing retirement and relief benefits to its members deleted text beginordeleted text endnew text begin,new text end having a separate
subsidiary incorporated firefighter's relief and pension association providing retirement
and relief benefitsnew text begin, or covered by the voluntary statewide volunteer firefighter retirement
plan, whichever applies,
new text end may qualify to receive state aid if it meets the following minimum
requirements or equivalent as determined by the state fire marshal by July 1, 1972:

(a) ten paid or volunteer firefighters including a fire chief and assistant fire chief, and

(b) regular scheduled meetings and frequent drills including instructions in fire
fighting tactics and in the use, care, and operation of all fire apparatus and equipment, and

(c) a motorized fire truck equipped with a motorized pump, 250 gallon or larger
water tank, 300 feet of one inch or larger fire hose in two lines with combination spray
and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent, dry
chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars,
axes, lanterns, fire coats, helmets, boots, and

(d) apparatus suitably housed in a building of good construction with facilities for
care of hose and equipment, and

(e) a reliable and adequate method of receiving fire alarms by telephone or with
electric siren and suitable means of sounding an alarm, and

(f) if response is to be provided outside the corporate limits of the municipality
wherein the fire department is located, the municipality has another piece of motorized
apparatus to make the response, and

(g) other requirements the commissioner establishes by rule.

Sec. 4.

Minnesota Statutes 2006, section 69.021, subdivision 4, is amended to read:


Subd. 4.

Determination of qualified state aid recipients; certification to
commissioner of finance.

(a) The commissioner shall determine which municipalities
and independent nonprofit firefighting corporations are qualified to receive fire state aid
and which municipalities and counties are qualified to receive police state aid.

(b) The commissioner shall determine qualification for state aid upon receipt of:

(1) the fire department personnel and equipment certification or the police department
and qualified peace officers certificate, whichever applies, required under section 69.011;

(2) the financial compliance report required under section 6.495, subdivision 3, if
applicable; and

(3) any other relevant information which comes to the attention of the commissioner.

(c) Upon completion of the determination, on or before October 1, the commissioner
shall calculate the amount of:

(1) the police state aid which each county or municipality is to receive under
subdivisions 5, 6, 7a, and 10; and

(2) the fire state aid which each municipality or nonprofit firefighting corporation is
to receive new text beginor have transmitted on its behalf to the voluntary statewide volunteer firefighter
retirement plan
new text endunder subdivisions 5 and 7.

(d) The commissioner shall certify to the commissioner of finance the name of each
county or municipality, and the amount of state aid which each county or municipality is to
receive, in the case of police state aid. The commissioner shall certify to the commissioner
of finance the name of each municipality or independent nonprofit firefighting corporation
and the amount of state aid which each municipality or independent nonprofit firefighting
corporation is to receivenew text begin or have transmitted on its behalf to the voluntary statewide
volunteer firefighter retirement plan
new text end, in the case of fire state aid.

Sec. 5.

Minnesota Statutes 2006, section 69.021, subdivision 7, is amended to read:


Subd. 7.

Apportionment of fire state aid to municipalities and relief associations.

(a) The commissioner shall apportion the fire state aid relative to the premiums reported
on the Minnesota Firetown Premium Reports filed under this chapter to new text beginor on behalf of
new text endeach municipality and/or firefighters relief association.

(b) The commissioner shall calculate an initial fire state aid allocation amount for
new text begin or attributable to new text endeach municipality or fire department under paragraph (c) and a minimum
fire state aid allocation amount for new text beginor attributable to new text endeach municipality or fire department
under paragraph (d). The municipality or fire department must receive the larger fire
state aid amount.

(c) The initial fire state aid allocation amount is the amount available for
apportionment as fire state aid under subdivision 5, without inclusion of any additional
funding amount to support a minimum fire state aid amount under section 423A.02,
subdivision 3
, allocated one-half in proportion to the population as shown in the last
official statewide federal census for each fire town and one-half in proportion to the market
value of each fire town, including (1) the market value of tax exempt property and (2) the
market value of natural resources lands receiving in lieu payments under sections 477A.11
to 477A.14, but excluding the market value of minerals. In the case of incorporated or
municipal fire departments furnishing fire protection to other cities, towns, or townships
as evidenced by valid fire service contracts filed with the commissioner, the distribution
must be adjusted proportionately to take into consideration the crossover fire protection
service. Necessary adjustments shall be made to subsequent apportionments. In the case
of municipalities or independent fire departments qualifying for the aid, the commissioner
shall calculate the state aid for the municipality or relief association on the basis of the
population and the market value of the area furnished fire protection service by the fire
department as evidenced by duly executed and valid fire service agreements filed with the
commissioner. If one or more fire departments are furnishing contracted fire service to a
city, town, or township, only the population and market value of the area served by each
fire department may be considered in calculating the state aid and the fire departments
furnishing service shall enter into an agreement apportioning among themselves the
percent of the population and the market value of each service area. The agreement must
be in writing and must be filed with the commissioner.

(d) The minimum fire state aid allocation amount is the amount in addition to the
initial fire state allocation amount that is derived from any additional funding amount
to support a minimum fire state aid amount under section 423A.02, subdivision 3,
and allocated to municipalities with volunteer firefighters relief associations new text beginor with
voluntary statewide volunteer firefighter retirement plan coverage
new text endbased on the number
of active volunteer firefighters who are members of the relief association as reported
in the annual financial reporting for the calendar year 1993 to the Office of the State
Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or
fire departments with volunteer firefighters relief associations receive in total at least a
minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of
30 firefighters. deleted text beginIf a relief association is established after calendar year 1993 and before
calendar year 2000, the number of active volunteer firefighters who are members of the
relief association as reported in the annual financial reporting for calendar year 1998 to
the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, shall be
used in this determination.
deleted text end If a relief association is established after calendar year 1999new text begin
or if a municipality provides volunteer firefighter retirement coverage by the statewide
retirement plan without having a relief association established after calendar year 2007
new text end,
the number of active volunteer firefighters who are members of the relief association as
reported in the first annual financial reporting submitted to the Office of the State Auditornew text begin
or the number of the volunteer firefighters from the municipality covered by the statewide
retirement plan as reported by the executive director of the Minnesota State Retirement
System, whichever applies
new text end, but not to exceed 20 active volunteer firefighters, must be
used in this determination.

(e) new text beginUnless the volunteer firefighter retirement coverage is by the statewide retirement
plan,
new text end the fire state aid must be paid to the treasurer of the municipality where the fire
department is located and the treasurer of the municipality shall, within 30 days of receipt
of the fire state aid, transmit the aid to the relief association if the relief association
has filed a financial report with the treasurer of the municipality and has met all other
statutory provisions pertaining to the aid apportionment.new text begin If the volunteer firefighters of the
municipality are covered by the voluntary statewide volunteer firefighter retirement plan,
the fire state aid must be transmitted to the statewide retirement fund.
new text end

(f) The commissioner may make rules to permit the administration of the provisions
of this section.

(g) Any adjustments needed to correct prior misallocations must be made to
subsequent apportionments.

Sec. 6.

Minnesota Statutes 2006, section 69.021, subdivision 9, is amended to read:


Subd. 9.

Appeal.

In the event that new text beginthe voluntary statewide volunteer firefighter
retirement plan or
new text endany municipality, county, fire relief association, or police relief
association feels itself to be aggrieved, it may request the commissioner to review and
adjust the apportionment of funds within the county in the case of police state aid, or
within the state in the case of fire state aid. The decision of the commissioner is subject to
appeal, review, and adjustment by the district court in the county in which the applicable
fire or police department is located.

Sec. 7.

Minnesota Statutes 2006, section 69.031, subdivision 1, is amended to read:


Subdivision 1.

Commissioner of finance's warrant.

The commissioner of
finance shall issue to new text beginthe voluntary statewide volunteer firefighter retirement plan or to
new text endthe county, municipality, or independent nonprofit firefighting corporation certified to
the commissioner of finance by the commissioner a warrant for an amount equal to the
amount of fire state aid or police state aid, whichever applies, certified for the applicable
state aid recipient by the commissioner under section 69.021. The amount of state aid due
and not paid by October 1 accrues interest at the rate of one percent for each month or part
of a month the amount remains unpaid, beginning the preceding July 1.

Sec. 8.

Minnesota Statutes 2006, section 356.20, subdivision 2, is amended to read:


Subd. 2.

Covered public pension plans and funds.

This section applies to the
following public pension plans:

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

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

(3) the Teachers Retirement Association;

(4) the State Patrol retirement plan;

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

(6) the Duluth Teachers Retirement Fund Association;

(7) the Minneapolis Employees Retirement Fund;

(8) the University of Minnesota faculty retirement plan;

(9) the University of Minnesota faculty supplemental retirement plan;

(10) the judges retirement fund;

(11) a police or firefighter's relief association specified or described in section 69.77,
subdivision 1a
, or 69.771, subdivision 1;

(12) the public employees police and fire plan of the Public Employees Retirement
Association;

(13) the correctional state employees retirement plan of the Minnesota State
Retirement System; deleted text beginand
deleted text end

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

new text begin (15) the voluntary statewide volunteer firefighter retirement plannew text end.

Sec. 9.

Minnesota Statutes 2006, section 356.214, subdivision 1, is amended to read:


Subdivision 1.

Joint retention.

(a) The chief administrative officers of the
Minnesota State Retirement System, the Public Employees Retirement Association, the
Teachers Retirement Association, the Duluth Teachers Retirement Fund Association,
the Minneapolis Employees Retirement Fund, and the St. Paul Teachers Retirement
Fund Association, jointly, on behalf of the state, its employees, its taxpayers, and its
various public pension plans, shall contract with an established actuarial consulting firm to
conduct annual actuarial valuations and related services for the retirement plans named
in paragraph (b). The principal from the actuarial consulting firm on the contract must
be an approved actuary under section 356.215, subdivision 1, paragraph (c). Prior to
becoming effective, the contract under this section is subject to a review and approval by
the Legislative Commission on Pensions and Retirement.

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

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

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

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

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

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

(6) the Minneapolis employees retirement plan, Minneapolis Employees Retirement
Fund;

(7) the public employees retirement plan, Public Employees Retirement Association;

(8) the public employees police and fire plan, Public Employees Retirement
Association;

(9) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund
Association;

(10) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund
Association;

(11) the legislators retirement plan, Minnesota State Retirement System;

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

(13) new text beginthe new text endlocal government correctional service retirement plan, Public Employees
Retirement Associationnew text begin; and
new text end

new text begin (14) the voluntary statewide volunteer firefighter retirement plannew text end.

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

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

(1) individual salary progression;

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

(3) payroll growth;

(4) mortality;

(5) retirement age;

(6) withdrawal; and

(7) disablement.

The contract must include provisions for the preparation of cost analyses by the
jointly retained actuary for proposed legislation that include changes in benefit provisions
or funding policies prior to their consideration by the Legislative Commission on Pensions
and Retirement.

(d) The actuary retained by the joint retirement systems shall annually prepare a
report to the legislature, including a commentary on the actuarial valuation calculations
for the plans named in paragraph (b) and summarizing the results of the actuarial valuation
calculations. The actuary shall include with the report the actuary's recommendations
to the legislature concerning the appropriateness of the support rates to achieve proper
funding of the retirement plans by the required funding dates. The actuary shall, as part
of the quadrennial experience study, include recommendations to the legislature on the
appropriateness of the actuarial valuation assumptions required for evaluation in the study.

(e) If the actuarial gain and loss analysis in the actuarial valuation calculations
indicates a persistent pattern of sizable gains or losses, as directed by the joint retirement
systems or as requested by the chair of the Legislative Commission on Pensions and
Retirement, the actuary shall prepare a special experience study for a plan listed in
paragraph (b), clause (3), (4), (5), (6), (8), (9), (10), (11), (12), deleted text beginordeleted text end (13), new text beginor (14), new text endin the
manner provided for in the standards for actuarial work adopted by the commission.

(f) The term of the contract between the joint retirement systems and the actuary
retained may not exceed five years. The joint retirement system administrative officers
shall establish procedures for the consideration and selection of contract bidders and
the requirements for the contents of an actuarial services contract under this section.
The procedures and requirements must be submitted to the Legislative Commission on
Pensions and Retirement for review and comment prior to final approval by the joint
administrators. The contract is subject to the procurement procedures under chapter 16C.
The consideration of bids and the selection of a consulting actuarial firm by the chief
administrative officers must occur at a meeting that is open to the public and reasonable
timely public notice of the date and the time of the meeting and its subject matter must
be given.

(g) The actuarial services contract may not limit the ability of the Minnesota
legislature and its standing committees and commissions to rely on the actuarial results
of the work prepared under the contract.

(h) The joint retirement systems shall designate one of the retirement system
executive directors as the actuarial services contract manager.

Sec. 10.

Minnesota Statutes 2006, 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:

preretirement
postretirement
interest rate
interest rate
plan
assumption
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
Minneapolis employees retirement plan
6.0
5.0
Duluth teachers retirement plan
8.5
8.5
St. Paul teachers retirement plan
8.5
8.5
Minneapolis Police Relief Association
6.0
6.0
Fairmont Police Relief Association
5.0
5.0
Minneapolis Fire Department Relief
Association
6.0
6.0
Virginia Fire Department Relief
Association
5.0
5.0
Bloomington Fire Department Relief
Association
6.0
6.0
local monthly benefit volunteer
firefighters relief associations
5.0
5.0
new text begin voluntary statewide lump-sum volunteer
firefighter retirement plan
new text end
new text begin 5.0
new text end
new text begin 5.0
new text end

(b) 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

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

(2) modified single rate future salary increase assumption

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

(3) select and ultimate future salary increase assumption or graded rate future salary
increase assumption

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

The select calculation is: during the ten-year
select period, a designated percent is
multiplied by the result of ten minus T,
where T is the number of completed years of
service, and is added to the applicable future
salary increase assumption. The designated
percent is 0.2 percent for the correctional
state employees retirement plan, the State
Patrol retirement plan, the public employees
police and fire plan, and the local government
correctional service plan; and 0.3 percent for
the general state employees retirement plan,
the general public employees retirement
plan, the teachers retirement plan, the Duluth
Teachers Retirement Fund Association,
and the St. Paul Teachers Retirement Fund
Association.

The ultimate future salary increase assumption is:

age
A
B
C
D
E
F
G
16
6.95%
6.95%
11.50%
8.20%
8.00%
6.90%
7.7500%
17
6.90
6.90
11.50
8.15
8.00
6.90
7.7500
18
6.85
6.85
11.50
8.10
8.00
6.90
7.7500
19
6.80
6.80
11.50
8.05
8.00
6.90
7.7500
20
6.75
6.40
11.50
6.00
6.90
6.90
7.7500
21
6.75
6.40
11.50
6.00
6.90
6.90
7.1454
22
6.75
6.40
11.00
6.00
6.90
6.90
7.0725
23
6.75
6.40
10.50
6.00
6.85
6.85
7.0544
24
6.75
6.40
10.00
6.00
6.80
6.80
7.0363
25
6.75
6.40
9.50
6.00
6.75
6.75
7.0000
26
6.75
6.36
9.20
6.00
6.70
6.70
7.0000
27
6.75
6.32
8.90
6.00
6.65
6.65
7.0000
28
6.75
6.28
8.60
6.00
6.60
6.60
7.0000
29
6.75
6.24
8.30
6.00
6.55
6.55
7.0000
30
6.75
6.20
8.00
6.00
6.50
6.50
7.0000
31
6.75
6.16
7.80
6.00
6.45
6.45
7.0000
32
6.75
6.12
7.60
6.00
6.40
6.40
7.0000
33
6.75
6.08
7.40
6.00
6.35
6.35
7.0000
34
6.75
6.04
7.20
6.00
6.30
6.30
7.0000
35
6.75
6.00
7.00
6.00
6.25
6.25
7.0000
36
6.75
5.96
6.80
6.00
6.20
6.20
6.9019
37
6.75
5.92
6.60
6.00
6.15
6.15
6.8074
38
6.75
5.88
6.40
5.90
6.10
6.10
6.7125
39
6.75
5.84
6.20
5.80
6.05
6.05
6.6054
40
6.75
5.80
6.00
5.70
6.00
6.00
6.5000
41
6.75
5.76
5.90
5.60
5.90
5.95
6.3540
42
6.75
5.72
5.80
5.50
5.80
5.90
6.2087
43
6.65
5.68
5.70
5.40
5.70
5.85
6.0622
44
6.55
5.64
5.60
5.30
5.60
5.80
5.9048
45
6.45
5.60
5.50
5.20
5.50
5.75
5.7500
46
6.35
5.56
5.45
5.10
5.40
5.70
5.6940
47
6.25
5.52
5.40
5.00
5.30
5.65
5.6375
48
6.15
5.48
5.35
5.00
5.20
5.60
5.5822
49
6.05
5.44
5.30
5.00
5.10
5.55
5.5404
50
5.95
5.40
5.25
5.00
5.00
5.50
5.5000
51
5.85
5.36
5.25
5.00
5.00
5.45
5.4384
52
5.75
5.32
5.25
5.00
5.00
5.40
5.3776
53
5.65
5.28
5.25
5.00
5.00
5.35
5.3167
54
5.55
5.24
5.25
5.00
5.00
5.30
5.2826
55
5.45
5.20
5.25
5.00
5.00
5.25
5.2500
56
5.35
5.16
5.25
5.00
5.00
5.20
5.2500
57
5.25
5.12
5.25
5.00
5.00
5.15
5.2500
58
5.25
5.08
5.25
5.10
5.00
5.10
5.2500
59
5.25
5.04
5.25
5.20
5.00
5.05
5.2500
60
5.25
5.00
5.25
5.30
5.00
5.00
5.2500
61
5.25
5.00
5.25
5.40
5.00
5.00
5.2500
62
5.25
5.00
5.25
5.50
5.00
5.00
5.2500
63
5.25
5.00
5.25
5.60
5.00
5.00
5.2500
64
5.25
5.00
5.25
5.70
5.00
5.00
5.2500
65
5.25
5.00
5.25
5.70
5.00
5.00
5.2500
66
5.25
5.00
5.25
5.70
5.00
5.00
5.2500
67
5.25
5.00
5.25
5.70
5.00
5.00
5.2500
68
5.25
5.00
5.25
5.70
5.00
5.00
5.2500
69
5.25
5.00
5.25
5.70
5.00
5.00
5.2500
70
5.25
5.00
5.25
5.70
5.00
5.00
5.2500
71
5.25
5.00
5.70

new text begin (4) no salary increase assumption
new text end

new text begin voluntary statewide lump-sum volunteer firefighter retirement plan
new text end

(c) 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:

payroll growth
plan
assumption
general state employees retirement plan
5.00%
correctional state employees retirement plan
5.00
State Patrol retirement plan
5.00
legislators retirement plan
5.00
elective state officers retirement plan
5.00
judges retirement plan
5.00
general public employees retirement plan
6.00
public employees police and fire retirement plan
6.00
local government correctional service retirement plan
6.00
teachers retirement plan
5.00
Duluth teachers retirement plan
5.00
St. Paul teachers retirement plan
5.00

Sec. 11.

Minnesota Statutes 2006, 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 must contain an exhibit indicating the additional
annual contribution sufficient to amortize the unfunded actuarial accrued liability. For
funds governed by chapters 3A, 352, 352B, 352C, 353, 354, 354A, and 490, 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. For funds
governed by chapter 3A, sections 352.90 through 352.951, chapters 352B, 352C, sections
353.63 through 353.68, and chapters 353C, 354A, and 490, the level percent additional
contribution must be calculated assuming annual payroll growth of 6.5 percent. For funds
governed by sections 352.01 through 352.86 and chapter 354, the level percent additional
contribution must be calculated assuming an annual payroll growth of five percent. For the
fund governed by sections 353.01 through 353.46, the level percent additional contribution
must be calculated assuming an annual payroll growth of six percent. For all other funds,
new text begin including the voluntary statewide lump-sum volunteer firefighter retirement plan, new text endthe
additional annual contribution must be calculated on a level annual dollar amount basis.

(b) For any fund other than the Minneapolis Employees Retirement Fund and the
Public Employees Retirement Association general plan, 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.new text begin For the voluntary
statewide lump-sum volunteer firefighter retirement plan, the established date for full
funding is the actuarial valuation date occurring five years after the current valuation date.
new text end

(c) For any fund or plan other than the Minneapolis Employees Retirement Fund and
the Public Employees Retirement Association general plan, 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 Minneapolis Employees Retirement Fund, the established date for full
funding is June 30, 2020.

(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) new text beginFor the voluntary statewide lump-sum volunteer firefighter retirement plan,
the established date for full funding is the actuarial valuation date occurring five years
after the current valuation date.
new text endFor the retirement plans for which the annual actuarial
valuation indicates an excess of valuation assets over the actuarial accrued liability,
the valuation assets in excess of the actuarial accrued liability must be recognized as a
reduction in the current contribution requirements by an amount equal to the amortization
of the excess expressed as a level percentage of pay over a 30-year period beginning anew
with each annual actuarial valuation of the plan.

Sec. 12.

Minnesota Statutes 2006, section 356.401, subdivision 3, is amended to read:


Subd. 3.

Covered retirement plans.

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

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

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

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

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

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

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

(7) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353;

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

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

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

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

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

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

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

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

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

(17) the Minneapolis Employees Retirement Fund, established by chapter 422A;

(18) the Minneapolis Police Relief Association, established by chapter 423B;

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

(20) the judges retirement fund, established by chapter 490new text begin; and
new text end

new text begin (21) the voluntary statewide lump-sum volunteer firefighter retirement plannew text end.

Sec. 13.

Minnesota Statutes 2006, section 356A.01, subdivision 24, is amended to read:


Subd. 24.

Statewide plan.

"Statewide plan" means any of the following pension
plans:

(1) the Minnesota State Retirement System or a pension plan administered by it;

(2) the Public Employees Retirement Association or a pension plan administered
by it; deleted text beginand
deleted text end

(3) the Teachers Retirement Association or a pension plan administered by itnew text begin; and
new text end

new text begin (4) the voluntary statewide lump-sum volunteer firefighter retirement plannew text end.

Sec. 14.

Minnesota Statutes 2006, section 356B.05, is amended to read:


356B.05 PUBLIC PENSION ADMINISTRATION LEGISLATION.

(a) Proposed administrative legislation recommended by or on behalf of the
Minnesota State Retirement System, the Public Employees Retirement Association, the
Teachers Retirement Association, new text beginthe voluntary statewide lump-sum volunteer firefighter
retirement plan,
new text endthe Minneapolis Employees Retirement Fund, or a first class city teachers
retirement fund association, and proposed retirement-related legislation recommended by
the Minnesota State Colleges and Universities system must be presented to the Legislative
Commission on Pensions and Retirement, the State and Local Governmental Operations
Committee of the senate, and the Governmental Operationsnew text begin, Reform, Technology,new text end and
deleted text begin Veterans Affairs Policydeleted text end new text beginElections new text endCommittee of the house of representatives on or before
October 1 of each year in order for the proposed administrative legislation to be acted
upon during the upcoming legislative session. The executive director or the deputy
executive director of the Legislative Commission on Pensions and Retirement shall
provide written comments on the proposed administrative provisions to the public pension
plans by November 15 of each year.

(b) Proposed administrative legislation recommended by or on behalf of a public
employee pension plan or system under paragraph (a) must address provisions:

(1) authorizing allowable service credit for leaves of absence and related
circumstances;

(2) governing offsets or deductions from the amount of disability benefits;

(3) authorizing the purchase of allowable service credit for prior uncredited periods;

(4) governing subsequent employment earnings by reemployed annuitants; and

(5) authorizing retroactive effect for retirement annuity or benefit applications.

(c) Where possible and desirable, taking into account the differences among the
public pension plans in existing law and the unique characteristics of the individual public
pension fund memberships, uniform provisions relating to paragraph (b) for all applicable
public pension plans must be presented for consideration during the legislative session.
Supporting documentation setting forth the policy rationale for each set of uniform
provisions must accompany the proposed administrative legislation.

Sec. 15. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 14 are effective July 1, 2008.
new text end