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SF 1249

as introduced - 88th Legislature (2013 - 2014) Posted on 05/20/2013 02:43pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to retirement; St. Paul Teachers Retirement Fund Association; increasing
state aid by up to $10,000,000 annually; increasing employee and employer
contributions; requiring employer contributions for reemployed annuitants;
requiring a 180-day separation to qualify for a retirement annuity; requiring
forfeiture of reemployed annuitant accounts by post-June 30, 2013, retirees;
increasing accrual rates on post-June 30, 2014, service; revising early retirement
factors; moving the Teachers Retirement Association aid authorization to
a new section; appropriating money; amending Minnesota Statutes 2012,
sections 354A.011, subdivision 21; 354A.12, subdivisions 1, 2a, 3a, 3c, 7, by
adding a subdivision; 354A.31, subdivisions 3, 4, 7; 354A.35, subdivision 2;
356.47, subdivision 1; 423A.02, subdivision 5; proposing coding for new law in
Minnesota Statutes, chapter 354.

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

Section 1.

new text begin [354.436] DIRECT STATE AID ON BEHALF OF THE FORMER
MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Aid authorization. new text end

new text begin The state shall pay $12,954,000 to the Teachers
Retirement Association on behalf of the former Minneapolis Teachers Retirement Fund
Association.
new text end

new text begin Subd. 2. new text end

new text begin Aid appropriation. new text end

new text begin The commissioner of management and budget shall
pay the aid. The amount required is appropriated annually from the general fund to the
commissioner of management and budget.
new text end

new text begin Subd. 3. new text end

new text begin Aid expiration. new text end

new text begin The aid specified in this section terminates and this
section expires when the current assets of the Teachers Retirement Association fund equal
or exceed the actuarial accrued liabilities of the fund as determined in the most recent
actuarial valuation report for the Teachers Retirement Association fund by the actuary
retained under section 356.214, or on the established date for full funding under section
356.215, subdivision 11, whichever occurs earlier.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2012, section 354A.011, subdivision 21, is amended to read:


Subd. 21.

Retirement.

new text begin (a) new text end "Retirement" means the time after the date of cessation
of active teaching service by a teacher who is deleted text begin thereafterdeleted text end new text begin then new text end entitled to an accrued
retirement annuity deleted text begin commencingdeleted text end new text begin beginning new text end as designated by the board of trustees and
payable deleted text begin pursuant to andeleted text end new text begin upon filing a valid new text end application for an annuity deleted text begin fileddeleted text end with the board.
The applicable provisions of law, articles of incorporation and bylaws in effect on the date
of cessation of active teaching service thereafter determine the rights of the person.

new text begin (b) For members of the St. Paul Teachers Retirement Fund Association, a right to a
retirement annuity requires a complete and continuous separation for 180 days from
employment in any form with Independent School District No. 625, including service as
an independent contractor or as an employee of an independent contractor.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2012, section 354A.12, subdivision 1, is amended to read:


Subdivision 1.

Employee contributions.

(a) The contribution required to be paid
by each member of a teachers retirement fund association is the percentage of total salary
specified below for the applicable association and program:

Association and Program
Percentage of Total Salary
Duluth Teachers Retirement Fund Association
old law and new law
coordinated programs
deleted text begin before July 1, 2011
deleted text end
deleted text begin 5.5 percent
deleted text end
deleted text begin effective July 1, 2011
deleted text end
deleted text begin 6.0 percent
deleted text end
deleted text begin effective July 1, 2012
deleted text end
6.5 percent
St. Paul Teachers Retirement Fund Association
deleted text begin basic program before July 1, 2011
deleted text end
deleted text begin 8 percent
deleted text end
deleted text begin basic program after June 30, 2011
deleted text end
deleted text begin 8.25 percent
deleted text end
basic program after June 30, 2012
8.5 percent
basic program after June 30, 2013
8.75 percent
basic program after June 30, 2014
9.0 percent
new text begin basic program after June 30, 2015
new text end
new text begin 9.5 percent
new text end
new text begin basic program after June 30, 2016
new text end
new text begin 10.0 percent
new text end
deleted text begin coordinated program before July 1, 2011
deleted text end
deleted text begin 5.5 percent
deleted text end
deleted text begin coordinated program after June 30, 2011
deleted text end
deleted text begin 5.75 percent
deleted text end
coordinated program after June 30, 2012
6.0 percent
coordinated program after June 30, 2013
6.25 percent
coordinated program after June 30, 2014
6.50 percent
new text begin coordinated program after June 30, 2015
new text end
new text begin 7.0 percent
new text end
new text begin coordinated program after June 30, 2016
new text end
new text begin 7.50 percent
new text end

(b) Contributions shall be made by deduction from salary and must be remitted
directly to the respective teachers retirement fund association at least once each month.

(c) When an employee contribution rate changes for a fiscal year, the new
contribution rate is effective for the entire salary paid by the employer with the first
payroll cycle reported.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2012, section 354A.12, subdivision 2a, is amended to read:


Subd. 2a.

Employer regular and additional contributions.

(a) The employing
units shall make the following employer contributions to teachers retirement fund
associations:

(1) for any coordinated member of one of the following teachers retirement fund
associations in a city of the first class, the employing unit shall make a regular employer
contribution to the respective retirement fund association in an amount equal to the
designated percentage of the salary of the coordinated member as provided below:

Duluth Teachers Retirement Fund Association
deleted text begin before July 1, 2011
deleted text end
deleted text begin 5.79 percent
deleted text end
deleted text begin effective July 1, 2011
deleted text end
deleted text begin 6.29 percent
deleted text end
deleted text begin effective July 1, 2012
deleted text end
6.79 percent
St. Paul Teachers Retirement Fund Association
deleted text begin before July 1, 2011
deleted text end
deleted text begin 4.50 percent
deleted text end
deleted text begin after June 30, 2011
deleted text end
deleted text begin 4.75 percent
deleted text end
after June 30, 2012
5.0 percent
after June 30, 2013
5.25 percent
after June 30, 2014
5.5 percent
new text begin after June 30, 2015
new text end
new text begin 6.0 percent
new text end
new text begin after June 30, 2016
new text end
new text begin 6.5 percent
new text end

(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make a regular employer contribution to the respective retirement
fund in an amount according to the schedule below:

deleted text begin before July 1, 2011
deleted text end
deleted text begin 8.0 percent of salary
deleted text end
deleted text begin after June 30, 2011
deleted text end
deleted text begin 8.25 percent of salary
deleted text end
after June 30, 2012
8.5 percent of salary
after June 30, 2013
8.75 percent of salary
after June 30, 2014
9.0 percent of salary
new text begin after June 30, 2015
new text end
new text begin 9.5 percent of salary
new text end
new text begin after June 30, 2016
new text end
new text begin 10.0 percent of salary
new text end

(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make an additional employer contribution to the respective fund in
an amount equal to 3.64 percent of the salary of the basic member;

(4) for a coordinated member of the St. Paul Teachers Retirement Fund Association,
the employing unit shall make an additional employer contribution to the respective fund
in an amount equal to the applicable percentage of the coordinated member's salary,
as provided below:

St. Paul Teachers Retirement Fund Association
3.84 percent

(b) The regular and additional employer contributions must be remitted directly to
the respective teachers retirement fund association at least once each month. Delinquent
amounts are payable with interest under the procedure in subdivision 1a.

(c) Payments of regular and additional employer contributions for school district
or technical college employees who are paid from normal operating funds must be made
from the appropriate fund of the district or technical college.

(d) When an employer contribution rate changes for a fiscal year, the new
contribution rate is effective for the entire salary paid by the employer with the first
payroll cycle reported.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2012, section 354A.12, is amended by adding a subdivision
to read:


new text begin Subd. 2c. new text end

new text begin St. Paul Teachers Retirement Fund Association; employer
contributions for reemployed annuitants.
new text end

new text begin The school district shall make the regular
employer contributions and additional employer contributions specified in subdivision 2a
on behalf of any retired member of the St. Paul Teachers Retirement Fund Association
who is reemployed by Independent School District No. 625, including providing service
as an independent contractor or as an employee of an independent contractor.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2012, section 354A.12, subdivision 3a, is amended to read:


Subd. 3a.

Special deleted text begin directdeleted text end state aid to first class city teachers retirement
fund associations.

(a) The state shall pay new text begin as special direct state aid new text end $346,000 to the
Duluth Teachers Retirement Fund Associationdeleted text begin ,deleted text end new text begin and new text end $2,827,000 to the St. Paul Teachers
Retirement Fund Association deleted text begin and, for the former Minneapolis Teachers Retirement Fund
Association, $12,954,000 to the Teachers Retirement Association
deleted text end .

deleted text begin (b) The direct state aids under this subdivision are payable October 1 annually. The
commissioner of management and budget shall pay the direct state aid. The amount
required under this subdivision is appropriated annually from the general fund to the
commissioner of management and budget.
deleted text end

new text begin (b) In addition to the aid specified in paragraph (a), the state shall pay to the St. Paul
Teachers Retirement Fund Association additional aid which varies depending upon the
relationship of the net annual calendar time-weighted total portfolio rate of return of
the St. Paul Teachers Retirement Fund Association, as computed by the Office of the
State Auditor and included in the most recent investment disclosure report under section
356.219, subdivision 6, and the preretirement interest rate assumption for the same year
for the St. Paul Teachers Retirement Fund Association under section 356.215, subdivision
8. The aid provided under this paragraph is $10,000,000 annually before adjustments. If
the applicable St. Paul Teachers Retirement Fund Association rate of return exceeds the
preretirement interest rate assumption, the aid under this paragraph is reduced by $500,000
for every one percent of return in excess of the preretirement interest rate assumption. The
net aid payable under this paragraph must not be less than $3,000,000 annually.
new text end

new text begin (c) The aids under this subdivision are payable annually October 1. The
commissioner of management and budget shall pay the aids specified in this subdivision.
The amounts required are appropriated annually from the general fund to the commissioner
of management and budget.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
The first aid payment under paragraph (b) is payable on October 1, 2013, based on results
in the Office of the State Auditor report referred to in that paragraph for the calendar
year ending December 31, 2011.
new text end

Sec. 7.

Minnesota Statutes 2012, section 354A.12, subdivision 3c, is amended to read:


Subd. 3c.

Termination of supplemental contributions and direct matching
and state aid.

new text begin (a)new text end The supplemental contributions payable to the St. Paul Teachers
Retirement Fund Association by Independent School District No. 625 under section
423A.02, subdivision 3, deleted text begin or the directdeleted text end new text begin and all forms of new text end state aid under subdivision 3a to the
St. Paul Teachers Retirement Fund Association must continue until the current assets of
the fund equal or exceed the actuarial accrued liability of the fund as determined in the
most recent actuarial report for the fund by the actuary retained under section 356.214 or
until new text begin June 30, new text end 2037, whichever occurs earlier.

new text begin (b) The aid to the Duluth Teachers Retirement Fund Association under section
423A.02, subdivision 3, and all forms of state aid under subdivision 3a to the Duluth
Teachers Retirement Fund Association must continue until the current assets of the fund
equal or exceed the actuarial accrued liability of the fund as determined in the most
recent actuarial report for the fund by the actuary retained under section 356.214 or until
the established date for full funding under section 356.215, subdivision 11, whichever
occurs earlier.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2012, section 354A.12, subdivision 7, is amended to read:


Subd. 7.

Recovery of benefit overpayments.

(a) If the executive director discovers,
within the time period specified in subdivision 8 following the payment of a refund or
the accrual date of any retirement annuity, survivor benefit, or disability benefit, that
benefit overpayment has occurred due to using invalid service or salary, or due to any
erroneous calculation procedure, the executive director must recalculate the annuity or
benefit payable and recover any overpayment. The executive director shall recover the
overpayment by requiring direct repayment or by suspending or reducing the payment of a
retirement annuity or other benefit payable under this chapter to the applicable person or
the person's estate, whichever applies, until all outstanding amounts have been recovered.
new text begin If a benefit overpayment or improper payment of benefits occurred caused by a failure
of the person to satisfy length of separation requirements for retirement under section
354A.011, subdivision 21, the executive director shall recover the improper payments by
requiring direct repayment.
new text end

(b) In the event the executive director determines that an overpaid annuity or benefit
that is the result of invalid salary included in the average salary used to calculate the
payment amount must be recovered, the executive director must determine the amount of
the employee deductions taken in error on the invalid salary, with interest as determined
under 354A.37, subdivision 3, and must subtract that amount from the total annuity or
benefit overpayment, and the remaining balance of the overpaid annuity or benefit, if
any, must be recovered.

(c) If the invalid employee deductions plus interest exceed the amount of the
overpaid benefits, the balance must be refunded to the person to whom the benefit or
annuity is being paid.

(d) Any invalid employer contributions reported on the invalid salary must be
credited against future contributions payable by the employer.

(e) If a member or former member, who is receiving a retirement annuity or
disability benefit for which an overpayment is being recovered, dies before recovery of the
overpayment is completed and an optional annuity or refund is payable, the remaining
balance of the overpaid annuity or benefit must continue to be recovered from the payment
to the optional annuity beneficiary or refund recipient.

(f) The board of trustees shall adopt policies directing the period of time and manner
for the collection of any overpaid retirement or optional annuity, and survivor or disability
benefit, or a refund that the executive director determines must be recovered as provided
under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2012, section 354A.31, subdivision 3, is amended to read:


Subd. 3.

Resumption of teaching after commencement of a retirement annuity.

(a) Any person who retired and is receiving a coordinated program retirement annuity
under the provisions of sections 354A.31 to 354A.41 or any person receiving a basic
program retirement annuity under the governing sections in the articles of incorporation
or bylaws and who has resumed teaching service for the school district in which the
teachers retirement fund association exists is entitled to continue to receive retirement
annuity payments, except that all or a portion of the annuity payments must be deferred
during the calendar year immediately following the calendar year in which the person's
salary from the teaching service is in an amount greater than $46,000. The amount of the
annuity deferral is one-third the salary amount in excess of $46,000 and must be deducted
from the annuity payable for the calendar year immediately following the calendar year
in which the excess amount was earned.

(b) If the person is retired for only a fractional part of the calendar year during the
initial year of retirement, the maximum reemployment salary exempt from triggering a
deferral as specified in this subdivision must be prorated for that calendar year.

(c) After a person has reached the Social Security normal retirement age, no deferral
requirement is applicable regardless of the amount of any compensation received for
teaching service for the school district in which the teachers retirement fund association
exists.

(d) The amount of the retirement annuity deferral must be handled or disposed
of as provided in section 356.47.

new text begin (e) Notwithstanding other paragraphs of this subdivision, for any retired St. Paul
Teachers Retirement Fund Association basic or coordinated program member whose
effective date of retirement is after June 30, 2013, amounts specified as deferred under
this subdivision must instead be forfeited to the St. Paul Teachers Retirement Fund
Association fund.
new text end

deleted text begin (e)deleted text end new text begin (f) new text end For the purpose of this subdivision, salary from teaching service includes: (i)
all income for services performed as a consultant or independent contractor; or income
resulting from working with the school district in any capacity; and (ii) the greater of either
the income received or an amount based on the rate paid with respect to an administrative
position, consultant, or independent contractor in the school district in which the teachers
retirement fund association exists and at the same level as the position occupied by the
person who resumes teaching service.

deleted text begin (f)deleted text end new text begin (g) new text end On or before February 15 of each year, each applicable employing unit
shall report to the teachers retirement fund association the amount of postretirement
salary as defined in this subdivision, earned as a teacher, consultant, or independent
contractor during the previous calendar year by each retiree of the teachers retirement
fund association for teaching service performed after retirement. The report must be in
a format approved by the executive secretary or director.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2012, section 354A.31, subdivision 4, is amended to read:


Subd. 4.

Computation of normal coordinated retirement annuity; St. Paul
fund.

(a) This subdivision applies to the coordinated program of the St. Paul Teachers
Retirement Fund Association.

(b) The normal coordinated retirement annuity is an amount equal to a retiring
coordinated member's average salary under section 354A.011, subdivision 7a, multiplied
by the retirement annuity formula percentage.

(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
became a member or a member in a pension fund listed in section 356.30, subdivision 3,
before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces
a higher annuity amount, in which case paragraph (d) will apply. new text begin For service rendered
before July 1, 2014,
new text end the retirement annuity formula percentage for purposes of this
paragraph is the percent specified in section 356.315, subdivision 1, per year for each year
of coordinated service for the first ten years and the percent specified in section 356.315,
subdivision 2
, for each year of coordinated service thereafter.new text begin For service rendered after
June 30, 2014, the retirement annuity formula percentage for purposes of this paragraph
is the percent specified in section 356.315, subdivision 1a, per year for each year of
coordinated service for the first ten years and the percent specified in section 356.315,
subdivision 2b
, for each year of coordinated service thereafter.
new text end

(d) This paragraph applies to a person who has become at least 55 years old and who
first becomes a member after June 30, 1989, and to any other member who has become
at least 55 years old and whose annuity amount, when calculated under this paragraph
and in conjunction with subdivision 7 is higher than it is when calculated under paragraph
(c), in conjunction with the provisions of subdivision 6. The retirement annuity formula
percentage for purposes of this paragraph is the percent specified in section 356.315,
subdivision 2
, for each year of coordinated servicenew text begin rendered before July 1, 2014, and
the percent specified in section 356.215, subdivision 2b, for each year of coordinated
service thereafter
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2014.
new text end

Sec. 11.

Minnesota Statutes 2012, section 354A.31, subdivision 7, is amended to read:


Subd. 7.

Actuarial reduction for early retirement.

new text begin (a) new text end This subdivision applies to
a person who has become at least 55 years old and first becomes a coordinated member
after June 30, 1989, and to any other coordinated member who has become at least 55
years old and whose annuity is higher when calculated using the retirement annuity
formula percentage in subdivision 4, paragraph (d), deleted text begin anddeleted text end new text begin or new text end subdivision 4a, paragraph (d),
new text begin as applicable, new text end in conjunction with this subdivision than when calculated under subdivision
4, paragraph (c), or subdivision 4a, paragraph (c), in conjunction with subdivision 6.

new text begin (b)new text end A coordinated member who retires before the deleted text begin full benefitdeleted text end new text begin normal retirement
new text end age shall be paid the retirement annuity calculated using the retirement annuity formula
percentage in subdivision 4, paragraph (d), or subdivision 4a, paragraph (d), deleted text begin reduced so
that the reduced annuity is the actuarial equivalent of the annuity that would be payable
to the member if the member deferred receipt of the annuity and the annuity amount
were augmented at an annual rate of three percent compounded annually from the day
the annuity begins to accrue until the normal retirement age if the employee became an
employee before July 1, 2006, and at 2.5 percent compounded annually from the day the
annuity begins to accrue until the normal retirement age if the person initially becomes a
teacher after June 30, 2006.
deleted text end new text begin whichever is applicable, multiplied by the applicable early
retirement factor specified below:
new text end

new text begin Under age 62
new text end
new text begin Age 62 or older
new text end
new text begin or less than 30 years of service
new text end
new text begin with 30 years of service
new text end
new text begin Normal retirement age:
new text end
new text begin 65
new text end
new text begin 66
new text end
new text begin 65
new text end
new text begin 66
new text end
new text begin Age at retirement
new text end
new text begin 55
new text end
new text begin 0.5376
new text end
new text begin 0.4592
new text end
new text begin 56
new text end
new text begin 0.5745
new text end
new text begin 0.4992
new text end
new text begin 57
new text end
new text begin 0.6092
new text end
new text begin 0.5370
new text end
new text begin 58
new text end
new text begin 0.6419
new text end
new text begin 0.5726
new text end
new text begin 59
new text end
new text begin 0.6726
new text end
new text begin 0.6062
new text end
new text begin 60
new text end
new text begin 0.7354
new text end
new text begin 0.6726
new text end
new text begin 61
new text end
new text begin 0.7947
new text end
new text begin 0.7354
new text end
new text begin 62
new text end
new text begin 0.8507
new text end
new text begin 0.7947
new text end
new text begin 0.8831
new text end
new text begin 0.8389
new text end
new text begin 63
new text end
new text begin 0.9035
new text end
new text begin 0.8507
new text end
new text begin 0.9246
new text end
new text begin 0.8831
new text end
new text begin 64
new text end
new text begin 0.9533
new text end
new text begin 0.9035
new text end
new text begin 0.9635
new text end
new text begin 0.9246
new text end
new text begin 65
new text end
new text begin 1.0000
new text end
new text begin 0.9533
new text end
new text begin 1.0000
new text end
new text begin 0.9635
new text end
new text begin 66
new text end
new text begin 1.0000
new text end
new text begin 1.0000
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 12.

Minnesota Statutes 2012, section 354A.35, subdivision 2, is amended to read:


Subd. 2.

Death while eligible to retire; surviving spouse optional annuity.

(a)
The surviving spouse of a vested coordinated member who dies prior to retirement may
elect to receive, instead of a refund with interest under subdivision 1, an annuity equal
to the 100 percent joint and survivor annuity the member could have qualified for had
the member terminated service on the date of death. The surviving spouse eligible for
a surviving spouse benefit under this paragraph may apply for the annuity at any time
after the date on which the deceased employee would have attained the required age for
retirement based on the employee's allowable service. A surviving spouse eligible for
surviving spouse benefits under paragraph (b) or (c) may apply for an annuity at any time
after the member's death. The member's surviving spouse shall be paid a joint and survivor
annuity under section 354A.32 and computed under section 354A.31.

(b) If the member was under age 55 and has credit for at least 30 years of allowable
service on the date of death, the surviving spouse may elect to receive a 100 percent joint
and survivor annuity based on the age of the member and surviving spouse on the date
of death. The annuity is payable using the full early retirement reduction under section
354A.31, subdivision 6, paragraph (a), to age 55 and one-half of the early retirement
reduction from age 55 to the age payment begins.

(c) If a vested member new text begin of the Duluth Teachers Retirement Fund Association new text end was
under age 55 on the date of death but did not yet qualify for retirement, the surviving
spouse may elect to receive the 100 percent joint and survivor annuity based on the age
of the member and the survivor at the time of death. The annuity is payable using the
full early retirement reduction under section 354A.31, subdivision 6 or 7, to age 55 and
one-half of the early retirement reduction from age 55 to the date payment begins.

new text begin (d) If a vested member of the St. Paul Teachers Retirement Fund Association was
under age 55 on the date of death but did not yet qualify for retirement, the surviving
spouse may elect to receive the 100 percent joint and survivor annuity based on the age
of the member and the survivor at the time of death. The annuity is payable using the
full early retirement reduction under section 354A.31, subdivision 6 or 7, to age 55 and
one-half of the actuarial equivalent reduction from age 55 to the date payment begins.
The actuarial equivalent reduction is calculated so that the reduced annuity is the actuarial
equivalent of the annuity that would be payable to the member if the member deferred
receipt of the annuity and the annuity amount were augmented at an annual rate of three
percent compounded annually from the day the annuity begins to accrue until the normal
retirement age.
new text end

deleted text begin (d)deleted text end new text begin (e)new text end Sections 354A.37, subdivision 2, and 354A.39 apply to a deferred annuity
or surviving spouse benefit payable under this section. The benefits are payable for the
life of the surviving spouse, or upon expiration of the term certain benefit payment under
subdivision 2b.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2012, section 356.47, subdivision 1, is amended to read:


Subdivision 1.

Application.

This section applies to the balance of annual retirement
annuities on the amount of retirement annuity reductions after reemployed annuitant
earnings limitations for retirement plans governed by section 352.115, subdivision 10;
353.37; 354.44, subdivision 5; or 354A.31, subdivision 3new text begin , for the Duluth Teachers
Retirement Fund Association. This section also applies to the balance of annual retirement
annuities on the amount of retirement annuity reductions under section 354A.31,
subdivision 3, for members of the St. Paul Teachers Retirement Fund Association whose
effective date of retirement is before July 1, 2013
new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2012, section 423A.02, subdivision 5, is amended to read:


Subd. 5.

Termination of state aid programs.

The amortization state aid,
supplemental amortization state aid, and additional amortization state aid programs
terminate as of the December 31, next following the date of the actuarial valuation when
the assets of the St. Paul Teachers Retirement Fund Association equal the actuarial accrued
liability of that plan or deleted text begin December 31, 2009deleted text end new text begin June 30, 2037new text end , whichever is deleted text begin laterdeleted text end new text begin earliernew text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 15. new text begin ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION BYLAW
AMENDMENT AUTHORIZATION.
new text end

new text begin Consistent with Minnesota Statutes, section 354A.12, subdivision 4, the St. Paul
Teachers Retirement Fund Association is authorized to amend its articles of incorporation
or its bylaws to apply the reduction factors stated in section 11 rather than the actuarial
reduction factors previously authorized.
new text end

new text begin EFFECTIVE DATE. new text end

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