1.1 	A bill for an act
1.2 	relating to retirement; volunteer firefighters; establishing a voluntary statewide 
1.3 	lump-sum retirement plan; making conforming changes to existing volunteer 
1.4 	firefighter laws; appropriating money; amending Minnesota Statutes 2006, 
1.5 	sections 69.011, subdivisions 1, 2, 4; 69.021, subdivisions 4, 7, 9; 69.031, 
1.6 	subdivision 1; 356.20, subdivision 2; 356.214, subdivision 1; 356.215, 
1.7 	subdivisions 8, 11; 356.401, subdivision 3; 356A.01, subdivision 24; 356B.05; 
1.8 	proposing coding for new law as Minnesota Statutes, chapter 424C.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	ARTICLE 1
1.11 	VOLUNTARY STATEWIDE LUMP-SUM
1.12 	VOLUNTEER FIREFIGHTER RETIREMENT PLAN

1.13 	Section 1. [424C.01] VOLUNTARY STATEWIDE LUMP-SUM VOLUNTEER 
1.14 	FIREFIGHTER RETIREMENT PLAN; ESTABLISHMENT.
1.15 	(a) A voluntary statewide lump-sum volunteer firefighter retirement plan is 
1.16 	established.
1.17 	(b) The plan is governed by this chapter and the applicable provisions of chapters 
1.18 	356 and 356A.

1.19 	Sec. 2. [424C.02] DEFINITIONS.
1.20 		Subdivision 1.Definitions. For purposes of this chapter, unless the context clearly 
1.21 	indicates otherwise, the terms or phrases in this section have the meanings given them.
1.22 		Subd. 2.Actuary. "Actuary" means the approved actuary retained under section 
1.23 	356.214.
1.24 		Subd. 3.Ancillary benefits. "Ancillary benefits" means any benefit other than a 
1.25 	service pension under section 424C.08, subdivision 6.
2.1 		Subd. 4.Deferred service pension. "Deferred service pension" means the benefit 
2.2 	payable under section 424C.08, subdivision 4, to a former firefighter who was a plan 
2.3 	member, meets the vesting requirement of section 424C.08, subdivision 3, and has not yet 
2.4 	applied for or received a service pension from the plan.
2.5 		Subd. 5.Deferred service pensioner. "Deferred service pensioner" means a former 
2.6 	firefighter and a former active plan member who is entitled to a deferred service pension.
2.7 		Subd. 6.Executive director. "Executive director" means the executive director of 
2.8 	the Minnesota State Retirement System appointed under section 352.03, subdivision 4.
2.9 		Subd. 7.Fire department. "Fire department" means the agency or department of a 
2.10 	municipality or an independent nonprofit firefighting corporation that is charged with the 
2.11 	prevention and suppression of fire and other related emergency activities.
2.12 		Subd. 8.Fire state aid. "Fire state aid" means the amount of aid payable to a 
2.13 	municipality or an independent nonprofit firefighting corporation under sections 69.021, 
2.14 	subdivision 7, and 69.031, subdivision 1.
2.15 		Subd. 9.Firetown. "Firetown" means the area serviced by any municipality having 
2.16 	a qualified fire department or a qualified incorporated fire department having a subsidiary 
2.17 	volunteer firefighters relief association.
2.18 		Subd. 10.Former plan member. "Former plan member" means a person who was 
2.19 	an active plan member and is no longer an active plan member.
2.20 		Subd. 11.Governing board. "Governing board" means the board of the voluntary 
2.21 	statewide lump-sum volunteer firefighter retirement plan established under section 
2.22 	424C.01.
2.23 		Subd. 12.Minnesota fire incident report. "Minnesota fire incident report" means 
2.24 	the report to the Minnesota state fire marshal that complies with the reporting requirements 
2.25 	of the National Fire Data Center of the United States Fire Administration under the federal 
2.26 	Fire Prevention and Control Act of 1974, Public Law 93-498.
2.27 		Subd. 13.Minnesota State Retirement System. "Minnesota State Retirement 
2.28 	System" means the retirement plan administration established under section 352.03.
2.29 		Subd. 14.Municipality. "Municipality" means a city, town, township, joint powers 
2.30 	agency with a fire department, or an American Indian tribal government located on a 
2.31 	federally recognized American Indian reservation with a fire department.
2.32 		Subd. 15.Normal retirement age. "Normal retirement age" means the age at which 
2.33 	a service pension is first payable under section 424C.08, subdivision 3.
2.34 		Subd. 16.Plan member. "Plan member" means a person who is a volunteer 
2.35 	firefighter with a fire department in a municipality that has elected to be covered by the 
2.36 	plan under section 424C.03.
3.1 		Subd. 17.Service pension. "Service pension" means the benefit specified in section 
3.2 	424C.08.
3.3 		Subd. 18.State Board of Investment. "State Board of Investment" means the 
3.4 	state agency created by the Minnesota Constitution, article XI, section 8, and governed 
3.5 	by chapter 11A.
3.6 		Subd. 19.Service credit. "Service credit" means the years and months of 
3.7 	active service as a volunteer firefighter rendered by a member of a fire department of a 
3.8 	municipality that has elected to be covered by the plan under section 424C.03 and is 
3.9 	certified by the fire chief of that fire department as meeting the requirements of the fire 
3.10 	department as good time.
3.11 		Subd. 20.Vesting requirement. "Vesting requirement" means the period of service 
3.12 	credit required of an active plan member to gain a nonforfeitable entitlement to a service 
3.13 	pension from the plan at or after the attainment of the normal retirement age.
3.14 		Subd. 21.Volunteer firefighter. "Volunteer firefighter" means a person who meets 
3.15 	the definition set forth in section 424A.001, subdivision 10.

3.16 	Sec. 3. [424C.03] PLAN COVERAGE; ELECTION.
3.17 		Subdivision 1.Plan coverage. Unless otherwise provided for in law, all volunteer 
3.18 	firefighters who are serving a fire department in a municipality that has elected to have 
3.19 	retirement coverage by the voluntary statewide lump-sum volunteer firefighter retirement 
3.20 	plan are covered by the plan.
3.21 		Subd. 2.Election of coverage. (a) An election of coverage for all volunteer 
3.22 	firefighters serving a fire department in a municipality may be initiated by:
3.23 	 (1) the board of trustees of the applicable volunteer firefighter relief association, 
3.24 	if one covers those volunteer firefighters; 
3.25 	(2) a group of active volunteer firefighters at least equal to 15 percent of the total 
3.26 	volunteer firefighter membership of the fire department if there is no applicable volunteer 
3.27 	firefighter relief association; or
3.28 	(3) the governing body of the applicable municipality.
3.29 	(b) The coverage election process under this section is initiated by a preliminary 
3.30 	approval of a resolution relating to the coverage by a majority vote of the board or 
3.31 	governing body and the filing with the executive director of:
3.32 	(1) the resolution;
3.33 	(2) a copy of the most recent financial report or statement of the relief association; 
3.34 	and
4.1 	(3) the most recent fire department volunteer firefighter roster, including age and 
4.2 	volunteer firefighter service credit.
4.3 	(c) Upon receipt of the resolution under paragraph (b), the executive director shall 
4.4 	have prepared an actuarial valuation of the actuarial accrued liability of the proposed 
4.5 	coverage group calculated by the actuary for the benefit level applicable to the fire 
4.6 	department under section 424C.08 and an evaluation of the fire department investment 
4.7 	portfolio, if any, by the State Board of Investment. The executive director shall report 
4.8 	the results of the special actuarial valuation and of the special investment analysis to the 
4.9 	applicable relief association and the applicable municipality.
4.10 	(d) Upon receipt of the reports from the executive director, the coverage election is 
4.11 	approved upon a majority vote of the board of the applicable volunteer firefighter relief 
4.12 	association, if one exists, or upon a majority vote of the active volunteer firefighters of the 
4.13 	fire department if no volunteer firefighter relief association exists, and upon a majority 
4.14 	vote of the governing board of the municipality.
4.15 	(e) If the approvals do not occur within 180 days of the receipt of the reports from 
4.16 	the executive director, the question may not reoccur for a period of 365 days following 
4.17 	that date.
4.18 		Subd. 3.Effective date of coverage. Coverage by the volunteer statewide 
4.19 	lump-sum volunteer firefighter retirement plan is effective on the first day of the first 
4.20 	month following the date on which the executive director certifies to the governing board 
4.21 	of the municipality and to the board of trustees of the relief association applicable to 
4.22 	that municipality, if one exists.

4.23 	Sec. 4. [424C.04] DISESTABLISHMENT OF LOCAL RELIEF ASSOCIATION 
4.24 	SPECIAL FUND.
4.25 		Subdivision 1.Special fund disestablishment. (a) On the date immediately prior to 
4.26 	the effective date of the coverage change under section 424C.03, subdivision 3, the special 
4.27 	fund of the applicable volunteer firefighter relief association, if one exists, ceases to exist 
4.28 	as a pension fund of the association and legal title to the assets of the special fund transfers 
4.29 	to the State Board of Investment, with the beneficial title to the assets of the special fund 
4.30 	remaining in the applicable volunteer firefighters.
4.31 	(b) If the market value of the special fund of the volunteer firefighter relief 
4.32 	association for which retirement coverage changed under this chapter declines in the 
4.33 	interval between the date of the most recent financial report or statement under section 
4.34 	424C.03, subdivision 2, and the special fund disestablishment date, the applicable 
4.35 	municipality shall transfer an additional amount to the State Board of Investment equal to 
5.1 	that decline. If more than one municipality utilized the fire department, the municipalities 
5.2 	shall allocate the additional transfer amount among the various applicable municipalities 
5.3 	one-half in proportion to the population of each municipality and one-half in proportion 
5.4 	to the market value of each municipality.
5.5 		Subd. 2.Other relief association changes. In addition to the transfer and 
5.6 	disestablishment of the special fund under subdivision 1, notwithstanding any provisions 
5.7 	of chapter 424A or 424B to the contrary, upon the effective date of the change in volunteer 
5.8 	firefighter retirement coverage, the following changes must occur with respect to the 
5.9 	applicable volunteer firefighter relief association:
5.10 	(1) the relief association board of trustees membership is five, comprised of the fire 
5.11 	chief of the fire department and four trustees elected by and from the relief association 
5.12 	membership;
5.13 	(2) the relief association may only maintain a general fund, which continues to 
5.14 	be governed by section 424A.06;
5.15 	(3) the relief association is not authorized to receive the proceeds of any state aid or 
5.16 	to receive any municipal funds; and
5.17 	(4) the relief association may not pay any service pension or benefit that was not 
5.18 	authorized as a general fund disbursement under the articles of incorporation or bylaws of 
5.19 	the relief association in effect prior to the initiation of the coverage transfer process.

5.20 	Sec. 5. [424C.05] STATEWIDE PLAN GOVERNING BOARD.
5.21 		Subdivision 1.Function. The voluntary statewide lump-sum volunteer firefighter 
5.22 	retirement plan must be managed and administered by the governing board under 
5.23 	subdivision 2 and by the executive director.
5.24 		Subd. 2.Membership. (a) The board of the voluntary statewide lump-sum 
5.25 	volunteer firefighter retirement plan consists of seven persons. The members of the board 
5.26 	must be appointed by the governor, as follows:
5.27 	(1) board seat A: a firefighter from a firetown with a population under 5,000;
5.28 	(2) board seat B: a firefighter from a firetown with a population greater than 5,000 
5.29 	and less than 9,001;
5.30 	(3) board seat C: a firefighter from a firetown with a population greater than 9,000 
5.31 	and less than 20,000;
5.32 	(4) board seat D: a firefighter from a firetown with a population greater than 19,999;
5.33 	(5) board seat E: a person from a list of three candidates submitted by the governing 
5.34 	board of the League of Minnesota Cities;
6.1 	(6) board seat F: a person from a list of three candidates submitted by the governing 
6.2 	board of the Minnesota Association of Townships; and
6.3 	(7) board seat G: a person who is a member of the public and is knowledgable 
6.4 	in pension matters.
6.5 	(b) The members of the board must serve staggered terms. Board members holding 
6.6 	seats A, C, and E have an initial term of one year, expiring June 30, 2009. Board members 
6.7 	holding seats B and F have an initial term of two years, expiring June 30, 2010. Board 
6.8 	members holding seats D and G have an initial term of three years, expiring June 30, 2011. 
6.9 	Subsequent terms for all board seats are three years. Terms continue to the designated 
6.10 	expiration date or until their successor is appointed, whichever is later.
6.11 	(c) Service as a member of the board is uncompensated by the state or the retirement 
6.12 	fund and does not qualify for the reimbursement of expenses or for any per diem 
6.13 	allowance.
6.14 	(d) A vacancy on the board must be filled by an appointment by the governor in 
6.15 	accord with any requirement specified in paragraph (a).
6.16 		Subd. 3.Board duties. (a) The board shall:
6.17 	(1) elect a chair;
6.18 	(2) establish rules necessary or convenient for the administration of the plan 
6.19 	consistent with this chapter, chapters 356 and 356A, and any other limitation or 
6.20 	requirement of law;
6.21 	(3) establish a budget for the administration of the plan with the advice of the 
6.22 	commissioner of finance;
6.23 	(4) consider and dispose of or take any other section consistent with law that the 
6.24 	board deems necessary to resolve issues related to the plan; and
6.25 	(5) oversee the administration of the plan by the executive director.
6.26 	(b) With respect to the duties undertaken by the executive director under this chapter, 
6.27 	section 352.03, subdivision 4, clause (5), does not apply.
6.28 		Subd. 4.Fiduciary obligation. The board and the executive director shall undertake 
6.29 	their activities in a manner consistent with the applicable provisions of chapter 356A.
6.30 		Subd. 5.Legal advisor; attorney general. (a) The attorney general is the legal 
6.31 	advisor of the board and the executive director with respect to the plan.
6.32 	(b) The board may sue or be sued or petitional under this section in the name of 
6.33 	the board of the system.
6.34 	(c) In actions by the board or against the board, the board must be represented 
6.35 	by the attorney general.
7.1 	(d) Venue of actions related to the plan or the board is in the court for the first 
7.2 	judicial district unless the action is an appeal to the Court of Appeals under section 356.95.
7.3 		Subd. 6.Information from municipalities and fire departments. Municipalities 
7.4 	and fire departments with volunteer firefighters covered by the plan shall provide all 
7.5 	relevant information and records that the board or the executive director requires to 
7.6 	perform their duties.

7.7 	Sec. 6. [424C.06] TREASURER.
7.8 	(a) The commissioner of finance is the ex officio treasurer of the retirement fund of 
7.9 	the retirement plan.
7.10 	(b) The general bond to the state covers all liability for actions as treasurer of the 
7.11 	fund.
7.12 	(c) Funds of the retirement plan received by the commissioner of finance must be set 
7.13 	aside in the state treasury to the credit of the retirement fund. The provisions of section 
7.14 	352.05 govern the processing of these funds.

7.15 	Sec. 7. [424C.07] FUND INVESTMENT; STATE BOARD OF INVESTMENT.
7.16 	(a) The executive director shall, from time to time, certify to the executive director 
7.17 	of the State Board of Investment any portions of the retirement fund that, in the judgment 
7.18 	of the executive director, are not required for immediate use.
7.19 	(b) Assets transferred to the State Board of Investment must be invested in the 
7.20 	combined investment funds under section 11A.14 and a portion of the fund may be 
7.21 	transferred to the Minnesota postretirement investment fund under section 11A.18.

7.22 	Sec. 8. [424C.08] SERVICE PENSION; BENEFIT CATEGORIES.
7.23 		Subdivision 1.Lump-sum service pensions. The service pension to be provided 
7.24 	by the retirement plan is a lump-sum service pension. The lump-sum service pension 
7.25 	payable to a retiring volunteer firefighter is the amount credited to the firefighter during 
7.26 	active service since the applicable municipality and volunteer firefighter relief association, 
7.27 	if any, elected coverage by the plan based on the service pension level under subdivision 2 
7.28 	applicable to each period of service.
7.29 		Subd. 2.Lump-sum benefit levels. (a) Based on the magnitude of fire department 
7.30 	calls and fire state aid under paragraph (b), an active firefighter of a fire department 
7.31 	covered by the plan is entitled to the applicable lump-sum service pension amount for 
7.32 	each year of good time service credit or 1/12th fraction of the amount for each month 
7.33 	of good time service credit. If the magnitude of fire department calls or the magnitude 
8.1 	of fire state aid equal or exceed an amount specified in paragraph (c), the combined 
8.2 	amount is the applicable lump-sum benefit level. If the magnitude amount is at least 85 
8.3 	percent of the specified magnitude amount for the next higher lump-sum benefit level, 
8.4 	the applicable municipality may elect to provide the higher lump-sum benefit level by 
8.5 	filing with the executive director a resolution to that effect approved by the governing 
8.6 	body of the municipality.
8.7 	(b) Annually, before April 1, the state fire marshal shall calculate the three-year 
8.8 	average number of calls to which each fire department with volunteer firefighters 
8.9 	covered by the plan responded as reported in the Minnesota Fire Information Report and 
8.10 	shall certify that calculation to the executive director. Based on the state fire marshal 
8.11 	certification and the most recent amount of fire state aid attributable to the applicable 
8.12 	fire department as certified by the commissioner of revenue, the executive director shall 
8.13 	credit each active volunteer firefighter with the applicable service pension amount for that 
8.14 	calendar year or portion of that calendar year.
8.15 	(c) The lump-sum service pension amounts are as follows:

8.16
8.17		average number of fire 
department calls
		call portion service pension
	
8.18			........
				$500 per year
		
8.19			........
				$750 per year
		
8.20			........
				$1,000 per year
		
8.21			........
				$1,250 per year
		
8.22			........
				$1,500 per year
		
8.23			........
				$1,750 per year
		
8.24			........
				$2,000 per year
		
8.25					plus
				
8.26			fire state aid
			fire state aid portion service pension
	
8.27			........
				$500 per year
		
8.28			........
				$750 per year
		
8.29			........
				$1,000 per year
		
8.30			........
				$1,250 per year
		
8.31			........
				$1,500 per year
		
8.32			........
				$1,750 per year
		
8.33			........
				$2,000 per year
		
8.34 		Subd. 3.Service pension eligibility. (a) An active volunteer firefighter associated 
8.35 	with a fire department covered by the retirement plan who terminates on-call firefighter 
8.36 	employment by or active firefighter service for the fire department, attains the age of at 
8.37 	least 50 years, or if the municipality has designated a later volunteer firefighter minimum 
8.38 	retirement age by governing body resolution, the designated minimum retirement age, 
8.39 	has at least five years of service credited by the plan, and has at least five years of service 
9.1 	rendered since first becoming covered by the retirement plan is entitled, upon written 
9.2 	application on a form prescribed by the executive director, to a lump-sum service pension 
9.3 	from the plan.
9.4 	(b) If the retiring firefighter has rendered at least 20 years of service credit covered 
9.5 	by the plan or at least 20 years of combined service credit covered by the plan and service 
9.6 	credit in the prior applicable volunteer firefighter relief association, as certified by the 
9.7 	volunteer firefighter relief association secretary prior to the disestablishment of the relief 
9.8 	association special fund, the retiring firefighter is eligible for an unreduced service pension.
9.9 	(c) If the retiring firefighter has rendered less than the 20 years of service credit 
9.10 	covered by the plan or combined service credit covered by the plan and service credit 
9.11 	in the prior applicable volunteer firefighter relief association under paragraph (b), the 
9.12 	retiring firefighter is eligible for the following nonforfeitable percentage of the credited 
9.13 	service pension amount:

9.14
9.15	completed years of service or combined 
service credit
	nonforfeitable percentage of credited 
service pension amount
	
9.16	5
	40 percent
	
9.17	6
	44 percent
	
9.18	7
	48 percent
	
9.19	8
	52 percent
	
9.20	9
	56 percent
	
9.21	10
	60 percent
	
9.22	11
	64 percent
	
9.23	12
	68 percent
	
9.24	13
	72 percent
	
9.25	14
	76 percent
	
9.26	15
	80 percent
	
9.27	16
	84 percent
	
9.28	17
	88 percent
	
9.29	18
	92 percent
	
9.30	19
	96 percent
	
9.31 		Subd. 4.Deferred service pension. (a) A volunteer firefighter covered by the plan 
9.32 	is entitled to a deferred service pension if the person:
9.33 	(1) has completed at least five years of service covered by the plan; and
9.34 	(2) has terminated on-call firefighter employment by the applicable fire department 
9.35 	or has ceased rendering active firefighting service for the applicable fire department before 
9.36 	age 50 or the minimum retirement age designated by the municipality under subdivision 
9.37 	3, if later.
10.1 	(b) The deferred service pension is payable when the former volunteer firefighter has 
10.2 	attained at least age 50 or the applicable minimum retirement age and applies for a service 
10.3 	pension in writing on a form prescribed by the executive director.
10.4 	(c) The deferred service pension amount is the service pension amount credited 
10.5 	to the firefighter under subdivision 2, adjusted for service credit less than 20 years as 
10.6 	provided in subdivision 3, and without any interest or investment performance amount.
10.7 		Subd. 5.Installment payments. (a) A retiring firefighter covered by the plan may 
10.8 	elect to receive the service pension in installment payments in lieu of a single lump-sum 
10.9 	service pension payment.
10.10 	(b) The installment payment election must be made in writing on a form prescribed 
10.11 	by the executive director, must be filed no later than 30 days before the service pension 
10.12 	payment date, and is irrevocable.
10.13 	(c) The service pension may be paid in three installments, four installments, or five 
10.14 	installments, as elected by the retiring firefighter.
10.15 	(d) The installment payment amounts must be determined so that the present value 
10.16 	of the aggregate installment payments, computed at an interest rate of five percent, 
10.17 	compounded annually, is equal to the amount of the single lump-sum payment that would 
10.18 	have been made had no installment payments been elected.
10.19 		Subd. 6.Ancillary benefits. (a) If a volunteer firefighter has rendered sufficient 
10.20 	service credit to be eligible for a future payment of a service pension, but no service 
10.21 	pension under subdivisions 2 and 3 or subdivision 4 has been paid, an amount equal 
10.22 	to the service pension under subdivision 3 may be paid as an ancillary benefit. Only 
10.23 	one ancillary benefit may be paid.
10.24 	(b) If the active volunteer firefighter becomes physically or mentally incapable of 
10.25 	rendering volunteer firefighter services due to a medically determinable injury or illness 
10.26 	and terminates service as a firefighter as a result of that injury or illness, the person may 
10.27 	apply for a disability benefit in lieu of any service pension under the plan and is entitled to 
10.28 	receive an immediate disability benefit in an amount equal to the earned service pension 
10.29 	under subdivisions 2 and 3 or subdivision 4, whichever applies.
10.30 	(c) If an active volunteer firefighter dies or if a former volunteer firefighter dies 
10.31 	without receiving a service pension or disability benefit under this section, the survivor 
10.32 	of the person is entitled to receive an immediate death benefit in an amount equal to the 
10.33 	earned service pension under subdivisions 2 and 3 or subdivision 4, whichever applies. 
10.34 	The survivor under this paragraph is the legally married spouse of the firefighter, or if 
10.35 	none, the surviving child or surviving children jointly of the firefighter, or if none, the 
10.36 	beneficiary designated by the firefighter, or if none, the estate of the firefighter.
11.1 		Subd. 7.Purchase of annuity contracts. The executive director may purchase an 
11.2 	annuity contract on behalf of a retiring firefighter in an amount equal to the lump sum 
11.3 	service pension payable under subdivision 3 if the purchase was requested by the retiring 
11.4 	firefighter in writing on a form prescribed by the executive director. The annuity contract 
11.5 	must be purchased from an insurance carrier which is licensed to do business in this 
11.6 	state and the annuity contract must be approved by the commissioner of commerce. If 
11.7 	purchased, the annuity contract is in lieu of any service pension or other benefit from the 
11.8 	retirement plan. The annuity contract may be purchased at any time after the volunteer 
11.9 	firefighter discontinues active service, but the annuity contract must stipulate that no 
11.10 	annuity amounts are payable before the former volunteer firefighter attains the age of 50.
11.11 		Subd. 8.Transfer to individual retirement account. Upon receipt of a 
11.12 	determination that the retirement plan is a qualified pension plan under section 401(a) of 
11.13 	the Internal Revenue Code, as amended, the executive director, upon request, shall transfer 
11.14 	the service pension amount under subdivision 3 of a former volunteer firefighter who 
11.15 	has terminated active firefighting services covered by the plan to the person's individual 
11.16 	retirement account under section 408(a) of the Internal Revenue Code, as amended. The 
11.17 	transfer request must be in writing on a form prescribed by the executive director and 
11.18 	must be filed by the former volunteer firefighter who has sufficient service credit to be 
11.19 	entitled to a service pension or, following the death of a participating active firefighter, 
11.20 	must be filed by the deceased firefighter's surviving spouse.

11.21 	Sec. 9. [424C.09] SERVICE CREDIT FOR UNIFORMED SERVICE.
11.22 		Subdivision 1.Authorization. Subject to restrictions stated in this section, a 
11.23 	volunteer firefighter who serves a fire department that is covered by the retirement plan 
11.24 	and who is absent from firefighting service due to service in the uniformed services, as 
11.25 	defined in United States Code, title 38, section 4303(13), may obtain service credit for that 
11.26 	military service period, not to exceed five years, unless a longer period is required under 
11.27 	United States Code, title 38, section 4312.
11.28 		Subd. 2.Limitations. (a) To be eligible for service credit under this section, the 
11.29 	volunteer firefighter must return to firefighting service covered by the retirement plan 
11.30 	upon discharge from service in the uniformed service within the time frame required in 
11.31 	United States Code, title 38, section 4312(e).
11.32 	(b) Service credit is not authorized if the firefighter separates from uniformed service 
11.33 	with a dishonorable or bad conduct discharge or under other than honorable conditions.
12.1 	(c) Service credit is not authorized if the firefighter fails to provide notice to the fire 
12.2 	department that the individual is leaving to provide service in the uniformed service, 
12.3 	unless it is not feasible to provide that notice due to the emergency nature of the situation.

12.4 	Sec. 10. [424C.10] SUPPLEMENTAL VOLUNTEER FIREFIGHTER BENEFIT.
12.5 		Subdivision 1. Definitions. For purposes of this section: 
12.6 	(1) "active volunteer firefighter" means a person who regularly renders fire 
12.7 	suppression service for a municipal fire department or an independent nonprofit 
12.8 	firefighting corporation, who has met the statutory and other requirements for retirement 
12.9 	plan membership, and who has been a fully qualified member of the retirement plan for 
12.10 	at least one month; and
12.11 	(2) "deferred volunteer firefighter" means a former active volunteer firefighter who 
12.12 	terminated active firefighting service, has sufficient service credit from the retirement plan 
12.13 	to be entitled to a service pension, but has not applied for or has not received the service 
12.14 	pension.
12.15 	(3) "qualified recipient" means an individual who receives a lump-sum distribution 
12.16 	of pension or retirement benefits from the retirement plan for service that the individual 
12.17 	has performed as a volunteer firefighter;
12.18 	(4) "survivor of a deceased active or deferred volunteer firefighter" means the legally 
12.19 	married spouse of a deceased volunteer firefighter, or, if none, the surviving minor child or 
12.20 	minor children of a deceased volunteer firefighter; 
12.21 		Subd. 2.Payment of supplemental benefit. (a) Upon the payment by a firefighters 
12.22 	relief association of a lump-sum distribution to a qualified recipient, the retirement plan 
12.23 	must pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the 
12.24 	contrary, the retirement plan may pay the supplemental benefit to the qualified recipient 
12.25 	from the retirement fund. The amount of this benefit equals ten percent of the regular lump 
12.26 	sum distribution that is paid on the basis of the recipient's service as a volunteer firefighter. 
12.27 	In no case may the amount of the supplemental benefit exceed $1,000. A supplemental 
12.28 	benefit under this paragraph may not be paid to a survivor of a deceased active or deferred 
12.29 	volunteer firefighter in that capacity.
12.30 	(b) Upon the payment by the retirement plan of a lump-sum survivor benefit to a 
12.31 	survivor of a deceased active volunteer firefighter or of a deceased deferred volunteer 
12.32 	firefighter, the retirement plan must pay a supplemental survivor benefit to the survivor 
12.33 	of the deceased active or deferred volunteer firefighter from the retirement fund. The 
12.34 	amount of the supplemental survivor benefit is 20 percent of the survivor benefit, but not 
12.35 	to exceed $2,000.
13.1 	(c) An individual may receive a supplemental benefit under paragraph (a) or 
13.2 	paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer 
13.3 	firefighter benefit.
13.4 		Subd. 3.State reimbursement. (a) By February 15 of each year, the executive 
13.5 	director, on behalf of the retirement fund, shall apply to the commissioner of revenue for 
13.6 	state reimbursement of the amount of supplemental benefits paid under subdivision 2 
13.7 	during the preceding calendar year. By March 15, the commissioner shall reimburse the 
13.8 	retirement fund for the amount of the supplemental benefits paid to qualified recipients 
13.9 	and to survivors of deceased active or deferred volunteer firefighters.
13.10 	(b) The commissioner of revenue shall prescribe the form of and supporting 
13.11 	information that must be supplied as part of the application for state reimbursement.
13.12 	(c) The reimbursement payment must be deposited in the retirement fund.
13.13 	(d) A sum sufficient to make the payments is appropriated from the general fund 
13.14 	to the commissioner of revenue.
13.15 		Subd. 4.In lieu of income tax exclusion. (a) The supplemental benefit provided 
13.16 	by this section is in lieu of the state income tax exclusion for lump-sum distributions of 
13.17 	retirement benefits paid to volunteer firefighters. 
13.18 	(b) If the law is modified to exclude or exempt volunteer firefighters' lump-sum 
13.19 	distributions from state income taxation, the supplemental benefits under this section 
13.20 	may no longer be paid beginning with the first calendar year in which the exclusion or 
13.21 	exemption is effective. This subdivision does not apply to exemption of all or part of a 
13.22 	lump-sum distribution under section 290.032 or 290.0802. 
13.23 		Subd. 5.Coordination with section 424A.10. If a supplemental benefit is payable 
13.24 	to an individual under this section and section 424A.10, the supplemental benefit payable 
13.25 	by the retirement plan may not exceed the unpaid balance of the applicable limit under 
13.26 	section 424A.10 and the state reimbursement of the retirement fund for a supplemental 
13.27 	benefit from the retirement plan may not exceed that amount.

13.28 	Sec. 11. [424C.11] RETIREMENT FUND; FUNDING.
13.29 		Subdivision 1.Fund created. (a) A special fund, the statewide volunteer firefighter 
13.30 	retirement fund, is created in the state treasury.
13.31 	(b) Assets of volunteer firefighter relief association special funds electing to be 
13.32 	transferred to the plan, fire state aid related to participating fire departments, supplemental 
13.33 	fire state aid related to covered firefighters, municipal contributions, and investment 
13.34 	earnings on accumulated fund assets must be deposited in the statewide volunteer 
13.35 	firefighter retirement fund.
14.1 	(c) Service pensions, supplemental benefits, ancillary benefits if no service pension 
14.2 	is payable, and administrative expenses must be paid from the statewide volunteer 
14.3 	firefighter retirement fund.
14.4 	(d) The fund must be invested in the combined investment fund under section 
14.5 	11A.14.
14.6 		Subd. 2.Transfers of relief association special fund assets. (a) Following the 
14.7 	election of coverage by the retirement plan under section 424C.03, on or before the 
14.8 	effective date of coverage under section 424C.03, subdivision 3, and after satisfying any 
14.9 	accounts payable from the special fund, the president, secretary, and treasurer of the 
14.10 	volunteer firefighter relief association shall direct the depository bank or other holder of 
14.11 	legal title of the applicable volunteer firefighter relief association special fund assets to 
14.12 	convey those assets to the executive director for deposit in the retirement fund and execute 
14.13 	the necessary documentation to authorize or order that conveyance.
14.14 	(b) If the transferred assets include investment securities that are determined by the 
14.15 	executive director of the State Board of Investment as being ineligible or inappropriate for 
14.16 	investment by the State Board of Investment, the executive director of the State Board of 
14.17 	Investment shall liquidate those ineligible or inappropriate investment securities as soon 
14.18 	as practicable following the transfer and deposit the proceeds of the sale in the fund.
14.19 	(c) Following the transfer of special fund assets, the actuary shall calculate the 
14.20 	actuarial accrued liability attributable to the municipality for past service by volunteer 
14.21 	firefighters with subsequent coverage by the retirement plan at the service pension amount 
14.22 	applicable to those firefighters. If the transferred special fund assets are greater than 
14.23 	the calculated actuarial accrued liability, the municipality has a credit to offset against 
14.24 	future regular municipal contributions under subdivision 5. If the transferred special fund 
14.25 	assets are less than the calculated actuarial accrued liability, the municipality must pay 
14.26 	an additional municipal contribution under subdivision 6.
14.27 		Subd. 3.Fire state aid deposit. (a) Notwithstanding any provision of sections 
14.28 	69.011 to 69.051, for firetowns with volunteer firefighters covered by the retirement plan, 
14.29 	the commissioner of revenue shall transmit the fire state aid, including any minimum 
14.30 	fire state aid, calculated for the applicable municipality to the retirement fund rather 
14.31 	than to the municipality.
14.32 	(b) If a municipality fails to file for fire state aid or fails to qualify for fire state aid 
14.33 	under section 69.011, and consequently no fire state aid on account of that municipality is 
14.34 	deposited in the retirement fund, the municipality shall pay an amount equal to the fire 
14.35 	state aid for which the municipality would have otherwise qualified. The municipality 
14.36 	shall pay the fire state aid equivalent amount on or before November 1.
15.1 		Subd. 4.Supplemental benefit reimbursement. Notwithstanding any provisions 
15.2 	of section 424C.10 to the contrary, a state reimbursement of a volunteer firefighter 
15.3 	supplemental benefit must be deposited in the retirement fund.
15.4 		Subd. 5.Regular municipal contribution. (a) The municipality in which a fire 
15.5 	department served by volunteer firefighters covered by the retirement plan is located 
15.6 	must make a regular municipal contribution.
15.7 	(b) The regular municipal contribution amount is a function of the lump-sum service 
15.8 	pension amount applicable to the respective volunteer firefighters, as follows:

15.9	total lump-sum service pension amount
		regular municipal contribution amount
	
15.10	Less than $1,500 per year
			$200 per year per firefighter
	
15.11
15.12	More than $1,499 and less 
than $2,000 per year
			$300 per year per firefighter
	
15.13
15.14	More than $1,999 and less 
than $2,500 per year
			$400 per year per firefighter
	
15.15
15.16	More than $2,499 and less 
than $3,000 per year
			$500 per year per firefighter
	
15.17
15.18	More than $2,999 and less 
than $3,500 per year
			$600 per year per firefighter
	
15.19
15.20	More than $3,499 and less 
than $4,000 per year
			$700 per year per firefighter
	
15.21	More than $3,999 per year
			$800 per year per firefighter
	
15.22 	(c) The regular municipal contribution is payable June 15 annually.
15.23 		Subd. 6.Additional municipal contribution. (a) If the municipality had transferred 
15.24 	volunteer firefighter relief association special fund assets in an amount less than the 
15.25 	actuarial accrued liability for the associated volunteer firefighters at the service pension 
15.26 	level applicable following the coverage transferral date, the municipality must also make 
15.27 	an additional annual municipal contribution.
15.28 	(b) The amount of the additional annual municipal contribution is the annual dollar 
15.29 	amount required to amortize the transferred asset shortfall amount over a period of five 
15.30 	years from the date of the asset transfer, calculated on a level dollar amortization basis and 
15.31 	assuming an annual interest rate of 8.5 percent.
15.32 	(c) The additional annual municipal contribution is payable on the anniversary 
15.33 	date of the asset transfer.

15.34 	Sec. 12. APPROPRIATION.
 15.35 	$150,000 is appropriated to the Minnesota State Retirement System for deposit in 
15.36 	the statewide volunteer firefighter retirement fund, once it is created, and for disbursement 
15.37 	to meet the expenses of the retirement plan and fund created by this article.

16.1 	Sec. 13. EFFECTIVE DATE.
 16.2 	Sections 1 to 12 are effective July 1, 2008.

16.3 	ARTICLE 2
16.4 	CONFORMING AMENDMENTS

16.5 	Section 1. Minnesota Statutes 2006, section 69.011, subdivision 1, is amended to read:
16.6 		Subdivision 1.Definitions. Unless the language or context clearly indicates that a 
16.7 	different meaning is intended, the following words and terms shall for the purposes of this 
16.8 	chapter and chapters 423, 423A, 424 and 424A have the meanings ascribed to them:
16.9 	(a) "Commissioner" means the commissioner of revenue.
16.10 	(b) "Municipality" means:
16.11 	(1) a home rule charter or statutory city;
16.12 	(2) an organized town;
16.13 	(3) a park district subject to chapter 398;
16.14 	(4) the University of Minnesota;
16.15 	(5) for purposes of the fire state aid program only, an American Indian tribal 
16.16 	government entity located within a federally recognized American Indian reservation;
16.17 	(6) for purposes of the police state aid program only, an American Indian tribal 
16.18 	government with a tribal police department which exercises state arrest powers under 
16.19 	section 626.90, 626.91, 626.92, or 626.93; 
16.20 	(7) for purposes of the police state aid program only, the Metropolitan Airports 
16.21 	Commission with respect to peace officers covered under chapter 422A; and
16.22 	(8) for purposes of the police state aid program only, the Department of Natural 
16.23 	Resources and the Department of Public Safety with respect to peace officers covered 
16.24 	under chapter 352B.
16.25 	(c) "Minnesota Firetown Premium Report" means a form prescribed by the 
16.26 	commissioner containing space for reporting by insurers of fire, lightning, sprinkler 
16.27 	leakage and extended coverage premiums received upon risks located or to be performed 
16.28 	in this state less return premiums and dividends.
16.29 	(d) "Firetown" means the area serviced by any municipality having a qualified fire 
16.30 	department or a qualified incorporated fire department having a subsidiary volunteer 
16.31 	firefighters' relief association.
16.32 	(e) "Market value" means latest available market value of all property in a taxing 
16.33 	jurisdiction, whether the property is subject to taxation, or exempt from ad valorem 
16.34 	taxation obtained from information which appears on abstracts filed with the commissioner 
16.35 	of revenue or equalized by the State Board of Equalization.
17.1 	(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the 
17.2 	commissioner for reporting by each fire and casualty insurer of all premiums received 
17.3 	upon direct business received by it in this state, or by its agents for it, in cash or otherwise, 
17.4 	during the preceding calendar year, with reference to insurance written for insuring against 
17.5 	the perils contained in auto insurance coverages as reported in the Minnesota business 
17.6 	schedule of the annual financial statement which each insurer is required to file with 
17.7 	the commissioner in accordance with the governing laws or rules less return premiums 
17.8 	and dividends.
17.9 	(g) "Peace officer" means any person:
17.10 	(1) whose primary source of income derived from wages is from direct employment 
17.11 	by a municipality or county as a law enforcement officer on a full-time basis of not less 
17.12 	than 30 hours per week;
17.13 	(2) who has been employed for a minimum of six months prior to December 31 
17.14 	preceding the date of the current year's certification under subdivision 2, clause (b);
17.15 	(3) who is sworn to enforce the general criminal laws of the state and local 
17.16 	ordinances;
17.17 	(4) who is licensed by the Peace Officers Standards and Training Board and is 
17.18 	authorized to arrest with a warrant; and
17.19 	(5) who is a member of a local police relief association to which section 69.77
17.20 	applies, the State Patrol retirement plan, the public employees police and fire fund, or the 
17.21 	Minneapolis Employees Retirement Fund. 
17.22 	(h) "Full-time equivalent number of peace officers providing contract service" means 
17.23 	the integral or fractional number of peace officers which would be necessary to provide 
17.24 	the contract service if all peace officers providing service were employed on a full-time 
17.25 	basis as defined by the employing unit and the municipality receiving the contract service.
17.26 	(i) "Retirement benefits other than a service pension" means any disbursement 
17.27 	authorized under section 424A.05, subdivision 3, clauses (2), (3), and (4). 
17.28 	(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person 
17.29 	who was elected or appointed to the specified position or, in the absence of the person, 
17.30 	another person who is designated by the applicable governing body. In a park district, 
17.31 	the clerk is the secretary of the board of park district commissioners. In the case of the 
17.32 	University of Minnesota, the clerk is that official designated by the Board of Regents. 
17.33 	For the Metropolitan Airports Commission, the clerk is the person designated by the 
17.34 	commission. For the Department of Natural Resources or the Department of Public Safety, 
17.35 	the clerk is the respective commissioner. For a tribal police department which exercises 
18.1 	state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the clerk is the person 
18.2 	designated by the applicable American Indian tribal government. 
18.3 	(k) "Voluntary statewide volunteer firefighter retirement plan" means the retirement 
18.4 	plan for volunteer firefighters established in article 1, section 2.

18.5 	Sec. 2. Minnesota Statutes 2006, section 69.011, subdivision 2, is amended to read:
18.6 		Subd. 2.Qualification for fire or police state aid. (a) In order to qualify to 
18.7 	receive fire state aid or to have its fire state aid transmitted to the voluntary statewide 
18.8 	volunteer firefighter retirement plan, on or before March 15 annually, in conjunction with 
18.9 	the financial report required pursuant to section 69.051, the clerk of each municipality 
18.10 	having a duly organized fire department as provided in subdivision 4, or the secretary of 
18.11 	each independent nonprofit firefighting corporation having a subsidiary incorporated 
18.12 	firefighters' relief association or having coverage by the voluntary statewide volunteer 
18.13 	firefighter retirement plan, whichever is applicable, and the fire chief, shall jointly 
18.14 	certify the existence of the municipal fire department or of the independent nonprofit 
18.15 	firefighting corporation, whichever is applicable, which meets the minimum qualification 
18.16 	requirements set forth in this subdivision, and the fire personnel and equipment of the 
18.17 	municipal fire department or the independent nonprofit firefighting corporation as of the 
18.18 	preceding December 31. Certification shallmust be made to the commissioner on a form 
18.19 	prescribed by the commissioner and shallmust include any other facts the commissioner 
18.20 	may require. The certification shallmust be made to the commissioner in duplicate. 
18.21 	Each copy of the certificate shallmust be duly executed and deemed an original. The 
18.22 	commissioner shallmust forward one copy to the auditor of the county wherein the fire 
18.23 	department is located and retain one copy. 
18.24 	(b) On or before March 15 annually the clerk of each municipality having a duly 
18.25 	organized police department and having a duly incorporated relief association shall certify 
18.26 	that fact to the county auditor of the county where the police department is located and to 
18.27 	the commissioner on a form prescribed by the commissioner together with the other facts 
18.28 	the commissioner or auditor may require.
18.29 	Except as provided in subdivision 2b, on or before March 15 annually, the clerk of 
18.30 	each municipality and the auditor of each county employing one or more peace officers 
18.31 	as defined in subdivision 1, clause (g), shall certify the number of such peace officers to 
18.32 	the commissioner on forms prescribed by the commissioner. Credit for officers employed 
18.33 	less than a full year shall be apportioned. Each full month of employment of a qualifying 
18.34 	officer during the calendar year shall entitle the employing municipality or county to credit 
18.35 	for 1/12 of the payment for employment of a peace officer for the entire year. For purposes 
19.1 	of sections 69.011 to 69.051, employment of a peace officer shall commence when the 
19.2 	peace officer is entered on the payroll of the respective municipal police department or 
19.3 	county sheriff's department. No peace officer shall be included in the certification of the 
19.4 	number of peace officers by more than one municipality or county for the same month. 

19.5 	Sec. 3. Minnesota Statutes 2006, section 69.011, subdivision 4, is amended to read:
19.6 		Subd. 4.Qualification for state aid. Any municipality in this state having for more 
19.7 	than one year an organized fire department and officially established by the governing 
19.8 	body of the municipality or an independent nonprofit fire fighting corporation created 
19.9 	under the nonprofit corporation act of this state and operating exclusively for fire fighting 
19.10 	purposes and providing retirement and relief benefits to its members or, having a separate 
19.11 	subsidiary incorporated firefighter's relief and pension association providing retirement 
19.12 	and relief benefits, or covered by the voluntary statewide volunteer firefighter retirement 
19.13 	plan, whichever applies, may qualify to receive state aid if it meets the following minimum 
19.14 	requirements or equivalent as determined by the state fire marshal by July 1, 1972:
19.15 	(a) ten paid or volunteer firefighters including a fire chief and assistant fire chief, and
19.16 	(b) regular scheduled meetings and frequent drills including instructions in fire 
19.17 	fighting tactics and in the use, care, and operation of all fire apparatus and equipment, and
19.18 	(c) a motorized fire truck equipped with a motorized pump, 250 gallon or larger 
19.19 	water tank, 300 feet of one inch or larger fire hose in two lines with combination spray 
19.20 	and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent, dry 
19.21 	chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars, 
19.22 	axes, lanterns, fire coats, helmets, boots, and
19.23 	(d) apparatus suitably housed in a building of good construction with facilities for 
19.24 	care of hose and equipment, and
19.25 	(e) a reliable and adequate method of receiving fire alarms by telephone or with 
19.26 	electric siren and suitable means of sounding an alarm, and
19.27 	(f) if response is to be provided outside the corporate limits of the municipality 
19.28 	wherein the fire department is located, the municipality has another piece of motorized 
19.29 	apparatus to make the response, and
19.30 	(g) other requirements the commissioner establishes by rule.

19.31 	Sec. 4. Minnesota Statutes 2006, section 69.021, subdivision 4, is amended to read:
19.32 		Subd. 4.Determination of qualified state aid recipients; certification to 
19.33 	commissioner of finance. (a) The commissioner shall determine which municipalities 
20.1 	and independent nonprofit firefighting corporations are qualified to receive fire state aid 
20.2 	and which municipalities and counties are qualified to receive police state aid.
20.3 	(b)  The commissioner shall determine qualification for state aid upon receipt of:
20.4 	(1) the fire department personnel and equipment certification or the police department 
20.5 	and qualified peace officers certificate, whichever applies, required under section  69.011; 
20.6 	(2) the financial compliance report required under section  6.495, subdivision 3, if 
20.7 	applicable; and 
20.8 	(3)  any other relevant information which comes to the attention of the commissioner.
20.9 	(c) Upon completion of the determination, on or before October 1, the commissioner 
20.10 	shall calculate the amount of:
20.11 	(1)  the police state aid which each county or municipality is to receive under 
20.12 	subdivisions 5, 6, 7a, and 10; and
20.13 	(2) the fire state aid which each municipality or nonprofit firefighting corporation is 
20.14 	to receive or have transmitted on its behalf to the voluntary statewide volunteer firefighter 
20.15 	retirement plan under subdivisions 5 and 7.
20.16 	(d) The commissioner shall certify to the commissioner of finance the name of each 
20.17 	county or municipality, and the amount of state aid which each county or municipality is to 
20.18 	receive, in the case of police state aid. The commissioner shall certify to the commissioner 
20.19 	of finance the name of each municipality or independent nonprofit firefighting corporation 
20.20 	and the amount of state aid which each municipality or independent nonprofit firefighting 
20.21 	corporation is to receive or have transmitted on its behalf to the voluntary statewide 
20.22 	volunteer firefighter retirement plan, in the case of fire state aid.

20.23 	Sec. 5. Minnesota Statutes 2006, section 69.021, subdivision 7, is amended to read:
20.24 		Subd. 7.Apportionment of fire state aid to municipalities and relief associations.
 20.25 	(a) The commissioner shall apportion the fire state aid relative to the premiums reported 
20.26 	on the Minnesota Firetown Premium Reports filed under this chapter to or on behalf of 
20.27 	each municipality and/or firefighters relief association.
20.28 	(b) The commissioner shall calculate an initial fire state aid allocation amount for 
20.29 	or attributable to each municipality or fire department under paragraph (c) and a minimum 
20.30 	fire state aid allocation amount for or attributable to each municipality or fire department 
20.31 	under paragraph (d). The municipality or fire department must receive the larger fire 
20.32 	state aid amount.
20.33 	(c) The initial fire state aid allocation amount is the amount available for 
20.34 	apportionment as fire state aid under subdivision 5, without inclusion of any additional 
20.35 	funding amount to support a minimum fire state aid amount under section  423A.02, 
21.1 	subdivision 3, allocated one-half in proportion to the population as shown in the last 
21.2 	official statewide federal census for each fire town and one-half in proportion to the market 
21.3 	value of each fire town, including (1) the market value of tax exempt property and (2) the 
21.4 	market value of natural resources lands receiving in lieu payments under sections  477A.11
21.5 	to  477A.14, but excluding the market value of minerals. In the case of incorporated or 
21.6 	municipal fire departments furnishing fire protection to other cities, towns, or townships 
21.7 	as evidenced by valid fire service contracts filed with the commissioner, the distribution 
21.8 	must be adjusted proportionately to take into consideration the crossover fire protection 
21.9 	service. Necessary adjustments shall be made to subsequent apportionments. In the case 
21.10 	of municipalities or independent fire departments qualifying for the aid, the commissioner 
21.11 	shall calculate the state aid for the municipality or relief association on the basis of the 
21.12 	population and the market value of the area furnished fire protection service by the fire 
21.13 	department as evidenced by duly executed and valid fire service agreements filed with the 
21.14 	commissioner. If one or more fire departments are furnishing contracted fire service to a 
21.15 	city, town, or township, only the population and market value of the area served by each 
21.16 	fire department may be considered in calculating the state aid and the fire departments 
21.17 	furnishing service shall enter into an agreement apportioning among themselves the 
21.18 	percent of the population and the market value of each service area. The agreement must 
21.19 	be in writing and must be filed with the commissioner. 
21.20 	(d)  The minimum fire state aid allocation amount is the amount in addition to the 
21.21 	initial fire state allocation amount that is derived from any additional funding amount 
21.22 	to support a minimum fire state aid amount under section  423A.02, subdivision 3, 
21.23 	and allocated to municipalities with volunteer firefighters relief associations or with 
21.24 	voluntary statewide volunteer firefighter retirement plan coverage based on the number 
21.25 	of active volunteer firefighters who are members of the relief association as reported 
21.26 	in the annual financial reporting for the calendar year 1993 to the Office of the State 
21.27 	Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or 
21.28 	fire departments with volunteer firefighters relief associations receive in total at least a 
21.29 	minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 
21.30 	30 firefighters. If a relief association is established after calendar year 1993 and before 
21.31 	calendar year 2000, the number of active volunteer firefighters who are members of the 
21.32 	relief association as reported in the annual financial reporting for calendar year 1998 to 
21.33 	the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, shall be 
21.34 	used in this determination. If a relief association is established after calendar year 1999
21.35 	or if a municipality provides volunteer firefighter retirement coverage by the statewide 
21.36 	retirement plan without having a relief association established after calendar year 2007, 
22.1 	the number of active volunteer firefighters who are members of the relief association as 
22.2 	reported in the first annual financial reporting submitted to the Office of the State Auditor
22.3 	or the number of the volunteer firefighters from the municipality covered by the statewide 
22.4 	retirement plan as reported by the executive director of the Minnesota State Retirement 
22.5 	System, whichever applies, but not to exceed 20 active volunteer firefighters, must be 
22.6 	used in this determination. 
22.7 	(e) Unless the volunteer firefighter retirement coverage is by the statewide retirement 
22.8 	plan, the fire state aid must be paid to the treasurer of the municipality where the fire 
22.9 	department is located and the treasurer of the municipality shall, within 30 days of receipt 
22.10 	of the fire state aid, transmit the aid to the relief association if the relief association 
22.11 	has filed a financial report with the treasurer of the municipality and has met all other 
22.12 	statutory provisions pertaining to the aid apportionment. If the volunteer firefighters of the 
22.13 	municipality are covered by the voluntary statewide volunteer firefighter retirement plan, 
22.14 	the fire state aid must be transmitted to the statewide retirement fund.
22.15 	(f) The commissioner may make rules to permit the administration of the provisions 
22.16 	of this section.
22.17 	(g) Any adjustments needed to correct prior misallocations must be made to 
22.18 	subsequent apportionments.

22.19 	Sec. 6. Minnesota Statutes 2006, section 69.021, subdivision 9, is amended to read:
22.20 		Subd. 9.Appeal. In the event that the voluntary statewide volunteer firefighter 
22.21 	retirement plan or any municipality, county, fire relief association, or police relief 
22.22 	association feels itself to be aggrieved, it may request the commissioner to review and 
22.23 	adjust the apportionment of funds within the county in the case of police state aid, or 
22.24 	within the state in the case of fire state aid. The decision of the commissioner is subject to 
22.25 	appeal, review, and adjustment by the district court in the county in which the applicable 
22.26 	fire or police department is located.

22.27 	Sec. 7. Minnesota Statutes 2006, section 69.031, subdivision 1, is amended to read:
22.28 		Subdivision 1.Commissioner of finance's warrant. The commissioner of 
22.29 	finance shall issue to the voluntary statewide volunteer firefighter retirement plan or to 
22.30 	the county, municipality, or independent nonprofit firefighting corporation certified to 
22.31 	the commissioner of finance by the commissioner a warrant for an amount equal to the 
22.32 	amount of fire state aid or police state aid, whichever applies, certified for the applicable 
22.33 	state aid recipient by the commissioner under section 69.021. The amount of state aid due 
23.1 	and not paid by October 1 accrues interest at the rate of one percent for each month or part 
23.2 	of a month the amount remains unpaid, beginning the preceding July 1. 

23.3 	Sec. 8. Minnesota Statutes 2006, section 356.20, subdivision 2, is amended to read:
23.4 		Subd. 2.Covered public pension plans and funds. This section applies to the 
23.5 	following public pension plans:
23.6 	(1) the general state employees retirement plan of the Minnesota State Retirement 
23.7 	System;
23.8 	(2) the general employees retirement plan of the Public Employees Retirement 
23.9 	Association;
23.10 	(3) the Teachers Retirement Association;
23.11 	(4) the State Patrol retirement plan;
23.12 	(5) the St. Paul Teachers Retirement Fund Association;
23.13 	(6) the Duluth Teachers Retirement Fund Association;
23.14 	(7) the Minneapolis Employees Retirement Fund;
23.15 	(8) the University of Minnesota faculty retirement plan;
23.16 	(9) the University of Minnesota faculty supplemental retirement plan;
23.17 	(10) the judges retirement fund;
23.18 	(11) a police or firefighter's relief association specified or described in section 69.77, 
23.19 	subdivision 1a, or 69.771, subdivision 1; 
23.20 	(12) the public employees police and fire plan of the Public Employees Retirement 
23.21 	Association;
23.22 	(13) the correctional state employees retirement plan of the Minnesota State 
23.23 	Retirement System; and
23.24 	(14) the local government correctional service retirement plan of the Public 
23.25 	Employees Retirement Association; and
23.26 	(15) the voluntary statewide volunteer firefighter retirement plan.

23.27 	Sec. 9. Minnesota Statutes 2006, section 356.214, subdivision 1, is amended to read:
23.28 		Subdivision 1.Joint retention. (a) The chief administrative officers of the 
23.29 	Minnesota State Retirement System, the Public Employees Retirement Association, the 
23.30 	Teachers Retirement Association, the Duluth Teachers Retirement Fund Association, 
23.31 	the Minneapolis Employees Retirement Fund, and the St. Paul Teachers Retirement 
23.32 	Fund Association, jointly, on behalf of the state, its employees, its taxpayers, and its 
23.33 	various public pension plans, shall contract with an established actuarial consulting firm to 
23.34 	conduct annual actuarial valuations and related services for the retirement plans named 
24.1 	in paragraph (b). The principal from the actuarial consulting firm on the contract must 
24.2 	be an approved actuary under section 356.215, subdivision 1, paragraph (c). Prior to 
24.3 	becoming effective, the contract under this section is subject to a review and approval by 
24.4 	the Legislative Commission on Pensions and Retirement. 
24.5 	(b) The contract for actuarial services must include the preparation of actuarial 
24.6 	valuations and related actuarial work for the following retirement plans:
24.7 	(1) the teachers retirement plan, Teachers Retirement Association;
24.8 	(2) the general state employees retirement plan, Minnesota State Retirement System;
24.9 	(3) the correctional employees retirement plan, Minnesota State Retirement System;
24.10 	(4) the State Patrol retirement plan, Minnesota State Retirement System;
24.11 	(5) the judges retirement plan, Minnesota State Retirement System;
24.12 	(6) the Minneapolis employees retirement plan, Minneapolis Employees Retirement 
24.13 	Fund;
24.14 	(7) the public employees retirement plan, Public Employees Retirement Association;
24.15 	(8) the public employees police and fire plan, Public Employees Retirement 
24.16 	Association;
24.17 	(9) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund 
24.18 	Association;
24.19 	(10) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund 
24.20 	Association;
24.21 	(11) the legislators retirement plan, Minnesota State Retirement System;
24.22 	(12) the elective state officers retirement plan, Minnesota State Retirement System; 
24.23 	and
24.24 	(13) the local government correctional service retirement plan, Public Employees 
24.25 	Retirement Association; and
24.26 	(14) the voluntary statewide volunteer firefighter retirement plan.
24.27 	(c) The contract must require completion of the annual actuarial valuation 
24.28 	calculations on a fiscal year basis, with the contents of the actuarial valuation calculations 
24.29 	as specified in section 356.215, and in conformity with the standards for actuarial work 
24.30 	adopted by the Legislative Commission on Pensions and Retirement. 
24.31 	The contract must require completion of annual experience data collection and 
24.32 	processing and a quadrennial published experience study for the plans listed in paragraph 
24.33 	(b), clauses (1), (2), and (7), as provided for in the standards for actuarial work adopted by 
24.34 	the commission. The experience data collection, processing, and analysis must evaluate 
24.35 	the following:
24.36 	(1) individual salary progression;
25.1 	(2) the rate of return on investments based on the current asset value;
25.2 	(3) payroll growth;
25.3 	(4) mortality;
25.4 	(5) retirement age;
25.5 	(6) withdrawal; and
25.6 	(7) disablement.
25.7 	The contract must include provisions for the preparation of cost analyses by the 
25.8 	jointly retained actuary for proposed legislation that include changes in benefit provisions 
25.9 	or funding policies prior to their consideration by the Legislative Commission on Pensions 
25.10 	and Retirement.
25.11 	(d) The actuary retained by the joint retirement systems shall annually prepare a 
25.12 	report to the legislature, including a commentary on the actuarial valuation calculations 
25.13 	for the plans named in paragraph (b) and summarizing the results of the actuarial valuation 
25.14 	calculations. The actuary shall include with the report the actuary's recommendations 
25.15 	to the legislature concerning the appropriateness of the support rates to achieve proper 
25.16 	funding of the retirement plans by the required funding dates. The actuary shall, as part 
25.17 	of the quadrennial experience study, include recommendations to the legislature on the 
25.18 	appropriateness of the actuarial valuation assumptions required for evaluation in the study.
25.19 	(e) If the actuarial gain and loss analysis in the actuarial valuation calculations 
25.20 	indicates a persistent pattern of sizable gains or losses, as directed by the joint retirement 
25.21 	systems or as requested by the chair of the Legislative Commission on Pensions and 
25.22 	Retirement, the actuary shall prepare a special experience study for a plan listed in 
25.23 	paragraph (b), clause (3), (4), (5), (6), (8), (9), (10), (11), (12), or (13), or (14), in the 
25.24 	manner provided for in the standards for actuarial work adopted by the commission.
25.25 	(f) The term of the contract between the joint retirement systems and the actuary 
25.26 	retained may not exceed five years. The joint retirement system administrative officers 
25.27 	shall establish procedures for the consideration and selection of contract bidders and 
25.28 	the requirements for the contents of an actuarial services contract under this section. 
25.29 	The procedures and requirements must be submitted to the Legislative Commission on 
25.30 	Pensions and Retirement for review and comment prior to final approval by the joint 
25.31 	administrators. The contract is subject to the procurement procedures under chapter 16C. 
25.32 	The consideration of bids and the selection of a consulting actuarial firm by the chief 
25.33 	administrative officers must occur at a meeting that is open to the public and reasonable 
25.34 	timely public notice of the date and the time of the meeting and its subject matter must 
25.35 	be given.
26.1 	(g) The actuarial services contract may not limit the ability of the Minnesota 
26.2 	legislature and its standing committees and commissions to rely on the actuarial results 
26.3 	of the work prepared under the contract.
26.4 	(h) The joint retirement systems shall designate one of the retirement system 
26.5 	executive directors as the actuarial services contract manager.

26.6 	Sec. 10. Minnesota Statutes 2006, section 356.215, subdivision 8, is amended to read:
26.7 		Subd. 8.Interest and salary assumptions. (a) The actuarial valuation must use 
26.8 	the applicable following preretirement interest assumption and the applicable following 
26.9 	postretirement interest assumption:

26.10		preretirement
	postretirement
	
26.11		interest rate
	interest rate
	
26.12	plan
	assumption
	assumption

26.13	general state employees retirement plan
		8.5%
	6.0%
	
26.14
26.15	correctional state employees retirement 
plan
		8.5
	6.0
	
26.16	State Patrol retirement plan
		8.5
	6.0
	
26.17	legislators retirement plan
		8.5
	6.0
	
26.18	elective state officers retirement plan
		8.5
	6.0
	
26.19	judges retirement plan
		8.5
	6.0
	
26.20	general public employees retirement plan
		8.5
	6.0
	
26.21
26.22	public employees police and fire 
retirement plan
		8.5
	6.0
	
26.23
26.24	local government correctional service 
retirement plan
		8.5
	6.0
	
26.25	teachers retirement plan
		8.5
	6.0
	
26.26	Minneapolis employees retirement plan
		6.0
	5.0
	
26.27	Duluth teachers retirement plan
		8.5
	8.5
	
26.28	St. Paul teachers retirement plan
		8.5
	8.5
	
26.29	Minneapolis Police Relief Association
		6.0
	6.0
	
26.30	Fairmont Police Relief Association
		5.0
	5.0
	
26.31
26.32	Minneapolis Fire Department Relief 
Association
		6.0
	6.0
	
26.33
26.34	Virginia Fire Department Relief 
Association
		5.0
	5.0
	
26.35
26.36	Bloomington Fire Department Relief 
Association
		6.0
	6.0
	
26.37
26.38	local monthly benefit volunteer 
firefighters relief associations
		5.0
	5.0
	
26.39
26.40	voluntary statewide lump-sum volunteer 
firefighter retirement plan
		5.0
	5.0
	
27.1 	(b) The actuarial valuation must use the applicable following single rate future salary 
27.2 	increase assumption, the applicable following modified single rate future salary increase 
27.3 	assumption, or the applicable following graded rate future salary increase assumption:
27.4 	(1) single rate future salary increase assumption

27.5		future salary
	
27.6	plan
	increase assumption

27.7	legislators retirement plan
		5.0%
	
27.8	elective state officers retirement plan
		5.0
	
27.9	judges retirement plan
		5.0
	
27.10	Minneapolis Police Relief Association
		4.0
	
27.11	Fairmont Police Relief Association
		3.5
	
27.12	Minneapolis Fire Department Relief Association
		4.0
	
27.13	Virginia Fire Department Relief Association
		3.5
	
27.14	Bloomington Fire Department Relief Association
		4.0
	
27.15 	(2) modified single rate future salary increase assumption

27.16			future salary
	
27.17	plan
		increase assumption
	
27.18
27.19
27.20
27.21
27.22	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
	
27.23 	(3) select and ultimate future salary increase assumption or graded rate future salary 
27.24 	increase assumption

27.25		future salary
	
27.26	plan
	increase assumption
	
27.27
27.28	general state employees retirement 
plan
	select calculation and assumption A
	
27.29
27.30	correctional state employees 
retirement plan
	assumption G
	
27.31	State Patrol retirement plan
	assumption G
	
27.32
27.33	general public employees 
retirement plan
	select calculation and assumption B
	
27.34
27.35	public employees police and fire 
fund retirement plan
	assumption C
	
27.36
27.37	local government correctional 
service retirement plan
	assumption G
	
27.38	teachers retirement plan
	assumption D
	
27.39	Duluth teachers retirement plan
	assumption E
	
27.40	St. Paul teachers retirement plan
	assumption F
	
27.41 	The select calculation is: during the ten-year 
27.42 	select period, a designated percent is 
28.1 	multiplied by the result of ten minus T, 
28.2 	where T is the number of completed years of 
28.3 	service, and is added to the applicable future 
28.4 	salary increase assumption. The designated 
28.5 	percent is 0.2 percent for the correctional 
28.6 	state employees retirement plan, the State 
28.7 	Patrol retirement plan, the public employees 
28.8 	police and fire plan, and the local government 
28.9 	correctional service plan; and 0.3 percent for 
28.10 	the general state employees retirement plan, 
28.11 	the general public employees retirement 
28.12 	plan, the teachers retirement plan, the Duluth 
28.13 	Teachers Retirement Fund Association, 
28.14 	and the St. Paul Teachers Retirement Fund 
28.15 	Association.
28.16 	The ultimate future salary increase assumption is:

28.17	age
	A
	B
	C
	D
	E
	F
	G
	
28.18	16
	6.95%
	6.95%
	11.50%
	8.20%
	8.00%
	6.90%
	7.7500%
	
28.19	17
	6.90
	6.90
	11.50
	8.15
	8.00
	6.90
	7.7500
	
28.20	18
	6.85
	6.85
	11.50
	8.10
	8.00
	6.90
	7.7500
	
28.21	19
	6.80
	6.80
	11.50
	8.05
	8.00
	6.90
	7.7500
	
28.22	20
	6.75
	6.40
	11.50
	6.00
	6.90
	6.90
	7.7500
	
28.23	21
	6.75
	6.40
	11.50
	6.00
	6.90
	6.90
	7.1454
	
28.24	22
	6.75
	6.40
	11.00
	6.00
	6.90
	6.90
	7.0725
	
28.25	23
	6.75
	6.40
	10.50
	6.00
	6.85
	6.85
	7.0544
	
28.26	24
	6.75
	6.40
	10.00
	6.00
	6.80
	6.80
	7.0363
	
28.27	25
	6.75
	6.40
	9.50
	6.00
	6.75
	6.75
	7.0000
	
28.28	26
	6.75
	6.36
	9.20
	6.00
	6.70
	6.70
	7.0000
	
28.29	27
	6.75
	6.32
	8.90
	6.00
	6.65
	6.65
	7.0000
	
28.30	28
	6.75
	6.28
	8.60
	6.00
	6.60
	6.60
	7.0000
	
28.31	29
	6.75
	6.24
	8.30
	6.00
	6.55
	6.55
	7.0000
	
28.32	30
	6.75
	6.20
	8.00
	6.00
	6.50
	6.50
	7.0000
	
28.33	31
	6.75
	6.16
	7.80
	6.00
	6.45
	6.45
	7.0000
	
28.34	32
	6.75
	6.12
	7.60
	6.00
	6.40
	6.40
	7.0000
	
28.35	33
	6.75
	6.08
	7.40
	6.00
	6.35
	6.35
	7.0000
	
28.36	34
	6.75
	6.04
	7.20
	6.00
	6.30
	6.30
	7.0000
	
28.37	35
	6.75
	6.00
	7.00
	6.00
	6.25
	6.25
	7.0000
	
28.38	36
	6.75
	5.96
	6.80
	6.00
	6.20
	6.20
	6.9019
	
28.39	37
	6.75
	5.92
	6.60
	6.00
	6.15
	6.15
	6.8074
	
28.40	38
	6.75
	5.88
	6.40
	5.90
	6.10
	6.10
	6.7125
	
29.1	39
	6.75
	5.84
	6.20
	5.80
	6.05
	6.05
	6.6054
	
29.2	40
	6.75
	5.80
	6.00
	5.70
	6.00
	6.00
	6.5000
	
29.3	41
	6.75
	5.76
	5.90
	5.60
	5.90
	5.95
	6.3540
	
29.4	42
	6.75
	5.72
	5.80
	5.50
	5.80
	5.90
	6.2087
	
29.5	43
	6.65
	5.68
	5.70
	5.40
	5.70
	5.85
	6.0622
	
29.6	44
	6.55
	5.64
	5.60
	5.30
	5.60
	5.80
	5.9048
	
29.7	45
	6.45
	5.60
	5.50
	5.20
	5.50
	5.75
	5.7500
	
29.8	46
	6.35
	5.56
	5.45
	5.10
	5.40
	5.70
	5.6940
	
29.9	47
	6.25
	5.52
	5.40
	5.00
	5.30
	5.65
	5.6375
	
29.10	48
	6.15
	5.48
	5.35
	5.00
	5.20
	5.60
	5.5822
	
29.11	49
	6.05
	5.44
	5.30
	5.00
	5.10
	5.55
	5.5404
	
29.12	50
	5.95
	5.40
	5.25
	5.00
	5.00
	5.50
	5.5000
	
29.13	51
	5.85
	5.36
	5.25
	5.00
	5.00
	5.45
	5.4384
	
29.14	52
	5.75
	5.32
	5.25
	5.00
	5.00
	5.40
	5.3776
	
29.15	53
	5.65
	5.28
	5.25
	5.00
	5.00
	5.35
	5.3167
	
29.16	54
	5.55
	5.24
	5.25
	5.00
	5.00
	5.30
	5.2826
	
29.17	55
	5.45
	5.20
	5.25
	5.00
	5.00
	5.25
	5.2500
	
29.18	56
	5.35
	5.16
	5.25
	5.00
	5.00
	5.20
	5.2500
	
29.19	57
	5.25
	5.12
	5.25
	5.00
	5.00
	5.15
	5.2500
	
29.20	58
	5.25
	5.08
	5.25
	5.10
	5.00
	5.10
	5.2500
	
29.21	59
	5.25
	5.04
	5.25
	5.20
	5.00
	5.05
	5.2500
	
29.22	60
	5.25
	5.00
	5.25
	5.30
	5.00
	5.00
	5.2500
	
29.23	61
	5.25
	5.00
	5.25
	5.40
	5.00
	5.00
	5.2500
	
29.24	62
	5.25
	5.00
	5.25
	5.50
	5.00
	5.00
	5.2500
	
29.25	63
	5.25
	5.00
	5.25
	5.60
	5.00
	5.00
	5.2500
	
29.26	64
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.2500
	
29.27	65
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.2500
	
29.28	66
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.2500
	
29.29	67
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.2500
	
29.30	68
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.2500
	
29.31	69
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.2500
	
29.32	70
	5.25
	5.00
	5.25
	5.70
	5.00
	5.00
	5.2500
	
29.33	71
	5.25
	5.00
		5.70
				
29.34 	(4) no salary increase assumption
29.35 	voluntary statewide lump-sum volunteer firefighter retirement plan
29.36 	(c) The actuarial valuation must use the applicable following payroll growth 
29.37 	assumption for calculating the amortization requirement for the unfunded actuarial 
29.38 	accrued liability where the amortization retirement is calculated as a level percentage 
29.39 	of an increasing payroll:

29.40		payroll growth
	
29.41	plan
	assumption

30.1	general state employees retirement plan
		5.00%
	
30.2	correctional state employees retirement plan
		5.00
	
30.3	State Patrol retirement plan
		5.00
	
30.4	legislators retirement plan
		5.00
	
30.5	elective state officers retirement plan
		5.00
	
30.6	judges retirement plan
		5.00
	
30.7	general public employees retirement plan
		6.00
	
30.8	public employees police and fire retirement plan
		6.00
	
30.9	local government correctional service retirement plan
		6.00
	
30.10	teachers retirement plan
		5.00
	
30.11	Duluth teachers retirement plan
		5.00
	
30.12	St. Paul teachers retirement plan
		5.00

30.13 	Sec. 11. Minnesota Statutes 2006, section 356.215, subdivision 11, is amended to read:
30.14 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating the 
30.15 	level normal cost, the actuarial valuation must contain an exhibit indicating the additional 
30.16 	annual contribution sufficient to amortize the unfunded actuarial accrued liability. For 
30.17 	funds governed by chapters 3A, 352, 352B, 352C, 353, 354, 354A, and 490, the additional 
30.18 	contribution must be calculated on a level percentage of covered payroll basis by the 
30.19 	established date for full funding in effect when the valuation is prepared. For funds 
30.20 	governed by chapter 3A, sections 352.90 through 352.951, chapters 352B, 352C, sections 
30.21 	353.63 through 353.68, and chapters 353C, 354A, and 490, the level percent additional 
30.22 	contribution must be calculated assuming annual payroll growth of 6.5 percent. For funds 
30.23 	governed by sections 352.01 through 352.86 and chapter 354, the level percent additional 
30.24 	contribution must be calculated assuming an annual payroll growth of five percent. For the 
30.25 	fund governed by sections 353.01 through 353.46, the level percent additional contribution 
30.26 	must be calculated assuming an annual payroll growth of six percent. For all other funds, 
30.27 	including the voluntary statewide lump-sum volunteer firefighter retirement plan, the 
30.28 	additional annual contribution must be calculated on a level annual dollar amount basis. 
30.29 	(b) For any fund other than the Minneapolis Employees Retirement Fund and the 
30.30 	Public Employees Retirement Association general plan, if there has not been a change in 
30.31 	the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a 
30.32 	change in the benefit plan governing annuities and benefits payable from the fund, a 
30.33 	change in the actuarial cost method used in calculating the actuarial accrued liability of all 
30.34 	or a portion of the fund, or a combination of the three, which change or changes by itself or 
30.35 	by themselves without inclusion of any other items of increase or decrease produce a net 
30.36 	increase in the unfunded actuarial accrued liability of the fund, the established date for full 
30.37 	funding is the first actuarial valuation date occurring after June 1, 2020. For the voluntary 
31.1 	statewide lump-sum volunteer firefighter retirement plan, the established date for full 
31.2 	funding is the actuarial valuation date occurring five years after the current valuation date.
31.3 	(c) For any fund or plan other than the Minneapolis Employees Retirement Fund and 
31.4 	the Public Employees Retirement Association general plan, if there has been a change in 
31.5 	any or all of the actuarial assumptions used for calculating the actuarial accrued liability 
31.6 	of the fund, a change in the benefit plan governing annuities and benefits payable from 
31.7 	the fund, a change in the actuarial cost method used in calculating the actuarial accrued 
31.8 	liability of all or a portion of the fund, or a combination of the three, and the change or 
31.9 	changes, by itself or by themselves and without inclusion of any other items of increase or 
31.10 	decrease, produce a net increase in the unfunded actuarial accrued liability in the fund, the 
31.11 	established date for full funding must be determined using the following procedure:
31.12 	(i) the unfunded actuarial accrued liability of the fund must be determined in 
31.13 	accordance with the plan provisions governing annuities and retirement benefits and the 
31.14 	actuarial assumptions in effect before an applicable change;
31.15 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
31.16 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
31.17 	(i) by the established date for full funding in effect before the change must be calculated 
31.18 	using the interest assumption specified in subdivision 8 in effect before the change;
31.19 	(iii) the unfunded actuarial accrued liability of the fund must be determined in 
31.20 	accordance with any new plan provisions governing annuities and benefits payable from 
31.21 	the fund and any new actuarial assumptions and the remaining plan provisions governing 
31.22 	annuities and benefits payable from the fund and actuarial assumptions in effect before 
31.23 	the change;
31.24 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
31.25 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
31.26 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
31.27 	under item (iii) over a period of 30 years from the end of the plan year in which the 
31.28 	applicable change is effective must be calculated using the applicable interest assumption 
31.29 	specified in subdivision 8 in effect after any applicable change;
31.30 	(v) the level annual dollar or level percentage amortization contribution under item 
31.31 	(iv) must be added to the level annual dollar amortization contribution or level percentage 
31.32 	calculated under item (ii);
31.33 	(vi) the period in which the unfunded actuarial accrued liability amount determined 
31.34 	in item (iii) is amortized by the total level annual dollar or level percentage amortization 
31.35 	contribution computed under item (v) must be calculated using the interest assumption 
31.36 	specified in subdivision 8 in effect after any applicable change, rounded to the nearest 
32.1 	integral number of years, but not to exceed 30 years from the end of the plan year in 
32.2 	which the determination of the established date for full funding using the procedure set 
32.3 	forth in this clause is made and not to be less than the period of years beginning in the 
32.4 	plan year in which the determination of the established date for full funding using the 
32.5 	procedure set forth in this clause is made and ending by the date for full funding in effect 
32.6 	before the change; and
32.7 	(vii) the period determined under item (vi) must be added to the date as of which 
32.8 	the actuarial valuation was prepared and the date obtained is the new established date 
32.9 	for full funding.
32.10 	(d) For the Minneapolis Employees Retirement Fund, the established date for full 
32.11 	funding is June 30, 2020.
32.12 	(e) For the general employees retirement plan of the Public Employees Retirement 
32.13 	Association, the established date for full funding is June 30, 2031.
32.14 	(f) For the Teachers Retirement Association, the established date for full funding is 
32.15 	June 30, 2037.
32.16 	(g) For the voluntary statewide lump-sum volunteer firefighter retirement plan, 
32.17 	the established date for full funding is the actuarial valuation date occurring five years 
32.18 	after the current valuation date. For the retirement plans for which the annual actuarial 
32.19 	valuation indicates an excess of valuation assets over the actuarial accrued liability, 
32.20 	the valuation assets in excess of the actuarial accrued liability must be recognized as a 
32.21 	reduction in the current contribution requirements by an amount equal to the amortization 
32.22 	of the excess expressed as a level percentage of pay over a 30-year period beginning anew 
32.23 	with each annual actuarial valuation of the plan.

32.24 	Sec. 12. Minnesota Statutes 2006, section 356.401, subdivision 3, is amended to read:
32.25 		Subd. 3.Covered retirement plans. The provisions of this section apply to the 
32.26 	following retirement plans:
32.27 	(1) the legislators retirement plan, established by chapter 3A;
32.28 	(2) the general state employees retirement plan of the Minnesota State Retirement 
32.29 	System, established by chapter 352;
32.30 	(3) the correctional state employees retirement plan of the Minnesota State 
32.31 	Retirement System, established by chapter 352;
32.32 	(4) the State Patrol retirement plan, established by chapter 352B;
32.33 	(5) the elective state officers retirement plan, established by chapter 352C;
32.34 	(6) the unclassified state employees retirement program, established by chapter 
32.35 	352D;
33.1 	(7) the general employees retirement plan of the Public Employees Retirement 
33.2 	Association, established by chapter 353;
33.3 	(8) the public employees police and fire plan of the Public Employees Retirement 
33.4 	Association, established by chapter 353;
33.5 	(9) the public employees defined contribution plan, established by chapter 353D;
33.6 	(10) the local government correctional service retirement plan of the Public 
33.7 	Employees Retirement Association, established by chapter 353E;
33.8 	(11) the Teachers Retirement Association, established by chapter 354;
33.9 	(12) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
33.10 	(13) the Minneapolis Teachers Retirement Fund Association, established by chapter 
33.11 	354A;
33.12 	(14) the St. Paul Teachers Retirement Fund Association, established by chapter 
33.13 	354A;
33.14 	(15) the individual retirement account plan, established by chapter 354B;
33.15 	(16) the higher education supplemental retirement plan, established by chapter 354C;
33.16 	(17) the Minneapolis Employees Retirement Fund, established by chapter 422A;
33.17 	(18) the Minneapolis Police Relief Association, established by chapter 423B;
33.18 	(19) the Minneapolis Firefighters Relief Association, established by chapter 423C; 
33.19 	and
33.20 	(20) the judges retirement fund, established by chapter 490; and
33.21 	(21) the voluntary statewide lump-sum volunteer firefighter retirement plan.

33.22 	Sec. 13. Minnesota Statutes 2006, section 356A.01, subdivision 24, is amended to read:
33.23 		Subd. 24.Statewide plan. "Statewide plan" means any of the following pension 
33.24 	plans:
33.25 	(1) the Minnesota State Retirement System or a pension plan administered by it;
33.26 	(2) the Public Employees Retirement Association or a pension plan administered 
33.27 	by it; and
33.28 	(3) the Teachers Retirement Association or a pension plan administered by it; and
33.29 	(4) the voluntary statewide lump-sum volunteer firefighter retirement plan.

33.30 	Sec. 14. Minnesota Statutes 2006, section 356B.05, is amended to read:
33.31 	356B.05 PUBLIC PENSION ADMINISTRATION LEGISLATION.
33.32 	(a) Proposed administrative legislation recommended by or on behalf of the 
33.33 	Minnesota State Retirement System, the Public Employees Retirement Association, the 
33.34 	Teachers Retirement Association, the voluntary statewide lump-sum volunteer firefighter 
34.1 	retirement plan, the Minneapolis Employees Retirement Fund, or a first class city teachers 
34.2 	retirement fund association, and proposed retirement-related legislation recommended by 
34.3 	the Minnesota State Colleges and Universities system must be presented to the Legislative 
34.4 	Commission on Pensions and Retirement, the State and Local Governmental Operations 
34.5 	Committee of the senate, and the Governmental Operations, Reform, Technology, and 
34.6 	Veterans Affairs PolicyElections Committee of the house of representatives on or before 
34.7 	October 1 of each year in order for the proposed administrative legislation to be acted 
34.8 	upon during the upcoming legislative session. The executive director or the deputy 
34.9 	executive director of the Legislative Commission on Pensions and Retirement shall 
34.10 	provide written comments on the proposed administrative provisions to the public pension 
34.11 	plans by November 15 of each year.
34.12 	(b) Proposed administrative legislation recommended by or on behalf of a public 
34.13 	employee pension plan or system under paragraph (a) must address provisions:
34.14 	(1) authorizing allowable service credit for leaves of absence and related 
34.15 	circumstances;
34.16 	(2) governing offsets or deductions from the amount of disability benefits;
34.17 	(3) authorizing the purchase of allowable service credit for prior uncredited periods;
34.18 	(4) governing subsequent employment earnings by reemployed annuitants; and
34.19 	(5) authorizing retroactive effect for retirement annuity or benefit applications.
34.20 	(c) Where possible and desirable, taking into account the differences among the 
34.21 	public pension plans in existing law and the unique characteristics of the individual public 
34.22 	pension fund memberships, uniform provisions relating to paragraph (b) for all applicable 
34.23 	public pension plans must be presented for consideration during the legislative session. 
34.24 	Supporting documentation setting forth the policy rationale for each set of uniform 
34.25 	provisions must accompany the proposed administrative legislation.

34.26 	Sec. 15. EFFECTIVE DATE.
 34.27 	Sections 1 to 14 are effective July 1, 2008.