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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language


  

                         Laws of Minnesota 1983 

                        CHAPTER 128--H.F.No. 760
           An act relating to retirement; making various 
          administrative and clarifying amendments to laws 
          governing the Minnesota state retirement system and 
          other retirement plans administered by the system; 
          amending Minnesota Statutes 1982, sections 352.01, 
          subdivisions 11, 16, and 17; 352.021, subdivision 5; 
          352.113, subdivisions 2, 4, and 6; 352.115, 
          subdivision 8; 352.12, subdivisions 3, 4, and 10; 
          352.15, subdivision 1; 352.22, subdivision 3; 352.93, 
          subdivision 1; 352.95, subdivisions 4 and 5; 352B.01, 
          subdivisions 3, 9, and 10; 352B.02, subdivision 1; 
          352B.03, subdivision 2; 352B.05; 352B.07; 352B.071; 
          352B.08, subdivision 1; 352B.105; 352B.11, 
          subdivisions 1, 4, and by adding a subdivision; 
          352B.30, subdivision 1; 352D.015, subdivision 9; 
          352D.02, subdivision 3; 352D.04, subdivision 1; and 
          490.124, subdivision 1; proposing new law coded in 
          Minnesota Statutes, chapter 352B; repealing Minnesota 
          Statutes 1982, sections 352.041, subdivision 6; 
          352.115, subdivisions 4 and 5; 352.118; 352.1191; 
          352.22, subdivision 4; 352.71; 352.93, subdivisions 5 
          and 6; 352B.01, subdivision 8; 352B.02, subdivision 2; 
          352B.06; 352B.13; 352B.261; and 352B.262. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 352.01, 
subdivision 11, is amended to read: 
    Subd. 11.  [ALLOWABLE SERVICE.] "Allowable service" means: 
    (1) Any service rendered by an employee for which on or 
before July 1, 1957, he was entitled to allowable service credit 
on the records of the system by reason of employee contributions 
in the form of salary deductions, payments in lieu of salary 
deductions, or in any other manner authorized by Minnesota 
Statutes 1953, chapter 352, as amended by Laws 1955, chapter 
239, or 
    (2) Any service rendered by an employee for which on or 
before July 1, 1961, he elected to obtain credit for service by 
making payments to the fund pursuant to Minnesota Statutes 1961, 
section 352.24, or 
    (3) Except as provided in clause (11) (9), any service 
rendered by an employee after July 1, 1957, for any calendar 
month in which he is paid salary from which deductions are made, 
deposited and credited in the fund, including deductions made, 
deposited and credited as provided in section 352.041, or 
    (4) Except as provided in clause (11) (9), any service 
rendered by an employee after July 1, 1957 for any calendar 
month for which payments in lieu of salary deductions are made, 
deposited and credited in the fund, as provided in section 
352.27 and Minnesota Statutes 1957, section 352.021, subdivision 
4. 
    (For purposes of paragraphs (3) and (4) of this 
subdivision, except as provided in clause (9), any salary paid 
for a fractional part of any calendar month is deemed the 
compensation for the entire calendar month.  The board of 
directors of the Minnesota state retirement system shall 
establish rules governing the accrual of allowable service 
credit for less than full time employment.), or 
    (5) The period of absence from their duties by employees 
who by reason of injuries incurred in the performance thereof 
are temporarily disabled and for which disability the state is 
liable under the workers' compensation law until the date 
authorized by the director for the commencement of payments of a 
total and permanent disability benefit from the retirement fund, 
or 
    (6) The unused portion of an employee's annual leave 
allowance for which he is paid salary, or 
    (7) Any employee who made payment in installments in order 
to obtain additional service credit but failed to make the final 
payment on or before July 1, 1962 shall be entitled to have 
credit for all service for which the payments he made will 
entitle him under the provisions of Minnesota Statutes 1961, 
Section 352.24.  In determining "the service for which the 
payments he made will entitle him" service credit shall extend 
retroactively from the latest service for which he made payment, 
or 
    (8) Former state employees who hold numbered certificates 
of deferred annuity who again become state employees shall 
surrender such certificates and shall be entitled to full credit 
for the service covered by the surrendered certificates, or 
    (9) Any service covered by a refund repaid as provided in 
sections 352.23 or 352D.05, subdivision 4, but does not include 
service rendered as an employee of the adjutant general for 
which the person has credit with the federal civil service 
retirement system, or 
    (10) (8) Any service prior to July 1, 1978 by an employee 
of the transit operating division of the metropolitan transit 
commission or by an employee on an authorized leave of absence 
from the transit operating division of the metropolitan transit 
commission who is employed by the labor organization which is 
the exclusive bargaining agent representing employees of the 
transit operating division which was credited by the 
metropolitan transit commission-transit operating division 
employees retirement fund or any of its predecessor plans or 
funds as past, intermediate, future, continuous or allowable 
service as defined in the metropolitan transit 
commission-transit operating division employees retirement fund 
plan document in effect on December 31, 1977, or 
    (11) (9) Any service by an employee of the metropolitan 
transit commission-transit operating division who is employed on 
a part-time basis for less than 32 hours per week or 1,664 hours 
per year 80 percent of full time, for which the employee is paid 
salary from which deductions are made, deposited and credited in 
the fund, including deductions made, deposited and credited as 
provided in section 352.041 or for which payments in lieu of 
salary deductions are made, deposited and credited in the fund 
as provided in section 352.27 shall be credited on a fractional 
basis either weekly by pay period, monthly, or annually based 
upon the relationship that the number of hours of service 
percentage of salary earned bears to either 40 hours per week or 
2,080 hours per year a full-time salary, with any salary paid 
for the fractional service credited on the basis of the rate of 
salary applicable for a full-time week pay period, month, or a 
full-time year, or 
    (12) (10) Any service by an employee in the Minnesota 
demonstration job-sharing program pursuant to sections 43.56 to 
43.62 which is less than 40 hours per week or 2,080 hours per 
year and for which the employee is paid salary from which 
deductions are made, deposited and credited in the fund, shall 
be credited on a fractional basis either weekly or annually 
based upon the relationship that the number of hours of service 
bears to either 40 hours per week or 2,080 hours per year, with 
any salary paid for the fractional service credited on the basis 
of the rate of salary applicable for a full-time week or a 
full-time year.  
     Sec. 2.  Minnesota Statutes 1982, section 352.01, 
subdivision 16, is amended to read: 
    Subd. 16.  [YEAR OF ALLOWABLE SERVICE.] "Year of allowable 
service" for any employee other than an employee of the 
metropolitan transit commission-transit operating division who 
is employed part time for less than 32 hours per week or 1,664 
hours per year means any 12 calendar months not necessarily 
consecutive in which an employee is entitled to allowable 
service credit.  It also means 12 months credit each calendar 
year for teachers in the state universities and state 
institutions who may or may not receive compensation in every 
month in the calendar year.  For an employee of the metropolitan 
transit commission-transit operating division who is employed 
part time for less than 32 hours per week or 1,664 hours per 
year the term means at least 1,664 hours of employment by the 
metropolitan transit commission-transit operating division 
during a year of 12 consecutive calendar months in which an 
employee is entitled to allowable service credit.  
    Sec. 3.  Minnesota Statutes 1982, section 352.01, 
subdivision 17, is amended to read: 
    Subd. 17.  [TOTAL AND PERMANENT DISABILITY.] "Total and 
permanent disability" means the inability to engage in any 
substantial gainful activity by reason of any medically 
determinable physical or mental impairment which can be expected 
to be of long-continued and indefinite duration which is a 
period of at least one year.  "Long-continued and indefinite 
duration" means that the disability has been or is expected to 
be for a period of at least one year. 
     Sec. 4.  Minnesota Statutes 1982, section 352.021, 
subdivision 5, is amended to read: 
    Subd. 5.  [CONTINUING COVERAGE.] (a) Any state employee who 
has made contributions to the retirement fund for a period of 
one year and who, thereafter continuing in state service, 
becomes eligible to membership in the state teachers retirement 
association shall have the option of continuing coverage under 
the system by filing in its office his written election 
therefor.  If he exercises this option, he shall not thereafter 
be entitled to membership in the teachers retirement 
association.  This option shall also extend to any member of the 
state employees retirement association who has been required to 
become a member of the state teachers retirement association 
subsequent to June 30, 1957; and when the option is exercised as 
in this subdivision provided, the teachers retirement 
association shall upon application refund to such person the sum 
to his credit in that fund.  
    (b) Employee contributions accepted under (a) of this 
subdivision by the state employees retirement association before 
July 1, 1961 shall entitle the paying member to the allowable 
service reflected by such contributions The election to be 
covered by the system under this subdivision or section 352.01, 
subdivision 2B, clause (3) shall be made on a form approved by 
the director within 90 days after appointment to the position. 
If the option is exercised, the employee shall not thereafter be 
entitled to membership in the teachers retirement association 
while employed by the state in a position which entitled the 
employee to make this election.  
     Sec. 5.  Minnesota Statutes 1982, section 352.113, 
subdivision 2, is amended to read: 
    Subd. 2.  [APPLICATION; ACCRUAL OF BENEFITS.] An employee 
making claim for a total and permanent disability benefit shall 
file a written application therefor in the office of the system 
in a form and manner prescribed by the executive director.  The 
benefit shall begin to accrue 90 days following the commencement 
of disability or the day following the last day paid whichever 
is later but in no event earlier than 60 days prior to the date 
the application is filed with the director.  
     Sec. 6.  Minnesota Statutes 1982, section 352.113, 
subdivision 4, is amended to read: 
    Subd. 4.  [MEDICAL EXAMINATIONS; AUTHORIZATION FOR PAYMENT 
OF BENEFIT.] An applicant shall provide medical evidence to 
support an application for total and permanent disability.  The 
director shall have the employee examined by at least two one 
additional licensed physicians physician designated by the 
medical advisor.  These The physicians shall make written 
reports to the director concerning the employee's disability 
including medical opinions as to whether he is permanently and 
totally disabled within the meaning of section 352.01, 
subdivision 17.  The director shall also obtain written 
certification from the employer stating whether the employee is 
on sick leave of absence because of a disability which will 
prevent further service to the employer and as a consequence the 
employee is not entitled to compensation from the employer.  If 
upon the consideration of the reports of the physicians and such 
other evidence as may have been supplied by the employee or 
others interested therein, the medical advisor finds the 
employee totally and permanently disabled, he shall make 
appropriate recommendation to the director in writing together 
with the date from which the employee has been totally disabled, 
and the director shall thereupon determine the propriety of 
authorizing payment of a disability benefit as provided in this 
section.  The employee must be on approved leave of absence from 
the employer to be eligible to make application for a total and 
permanent disability benefit, but the fact that an employee is 
placed on leave of absence without compensation because of 
disability shall not bar him from receiving a disability 
benefit.  Unless payment of a disability benefit has terminated 
because the employee is no longer totally disabled, or because 
he has reached age 65 as provided in this section, the 
disability benefit shall cease with the last payment received by 
the disabled employee or which had accrued to him in his 
lifetime unless he leaves a spouse surviving him; in that event 
the surviving spouse shall be entitled to the disability benefit 
for the calendar month in which the disabled employee died.  
     Sec. 7.  Minnesota Statutes 1982, section 352.113, 
subdivision 6, is amended to read: 
    Subd. 6.  [REGULAR MEDICAL EXAMINATIONS.] At least once 
each year during the first five years following the allowance of 
a disability benefit to any employee, and at least once in every 
three-year period thereafter, the director shall may require any 
disabled employee to undergo a medical examination to be made at 
the place of residence of such employee, or at any place 
mutually agreed upon, by a physician or physicians designated by 
the medical advisor and engaged by the director.  If any 
examination indicates to the medical advisor that he is no 
longer permanently and totally disabled, or that he is engaged 
or is able to engage in a gainful occupation, payments of the 
disability benefit by the fund shall be discontinued.  The 
payments shall discontinue as soon as he is reinstated to the 
payroll following sick leave, but in no case shall payment be 
made for more than 60 days after the medical advisor finds that 
such employee is no longer permanently and totally disabled.  
     Sec. 8.  Minnesota Statutes 1982, section 352.115, 
subdivision 8, is amended to read: 
    Subd. 8.  [ACCRUAL OF ANNUITY.] State employees shall make 
application for an annuity but such application shall not be 
made more than 60 days prior to the time the employee is 
eligible to retire by reason of both age and service 
requirements.  If the director determines an applicant for 
annuity has fulfilled all the requirements of the law to entitle 
him to an annuity, he shall authorize payment thereof in 
accordance with the provisions of this chapter and payment shall 
be made pursuant to this authorization.  An annuity shall begin 
to accrue no earlier than 60 days prior to the date the 
application is filed with the director except that if an 
optional annuity as provided in section 352.116, subdivision 3 
is selected the annuity shall begin to accrue 30 days after the 
application is filed with the director but in no event prior to 
the day following the termination of state service or prior to 
the day the employee is eligible to retire by reason of both age 
and service requirements.  The retirement annuity shall cease 
with the last payment which had accrued to the retired employee 
during his lifetime unless he elected an optional annuity 
provided in section 352.116, subdivision 3, and he had become 
entitled to payment thereof.  The joint and last survivor 
annuity shall cease with the last payment received by the 
survivor in his or her lifetime.  If a retired employee had not 
selected an optional annuity, or a survivor annuity is not 
payable under the option, and a spouse survives, such spouse 
shall be entitled only to the annuity for the calendar month in 
which the retired employee died.  If an optional annuity is 
payable after the death of the retired employee, the survivor 
shall be entitled to the annuity for the calendar month in which 
the retired employee died.  If an employee who has filed an 
application for annuity prior to the termination of his state 
service dies before an annuity becomes payable to him, 
refundment of his accumulated contributions shall be made as 
provided in section 352.12, subdivision 1.  
     Sec. 9.  Minnesota Statutes 1982, section 352.12, 
subdivision 3, is amended to read: 
    Subd. 3.  [REFUNDMENT REFUND OF $500 $1,500 OR LESS.] If a 
state employee or former state employee dies without having 
designated a beneficiary, or if the beneficiary should die 
before making application for refundment refund of the sum to 
the credit of such deceased employee or former employee, and 
there is no surviving spouse, and the amount of the refundment 
refund does not exceed $500 $1,500 exclusive of interest the 
director may, 90 days after the date of death of the employee or 
former employee in the absence of probate proceedings, upon 
proper application make refundment refund to the next of kin of 
the deceased employee or former employee, as determined by the 
director with the concurrence of the board, to be entitled 
thereto consistent with the laws of descent and such 
determination and payment without notice shall be conclusive and 
final and shall be a bar against claims of all other persons.  
     Sec. 10.  Minnesota Statutes 1982, section 352.12, 
subdivision 4, is amended to read: 
    Subd. 4.  [REFUNDMENT REFUND TO MINOR BENEFICIARY.] If an 
employee or former employee dies having named as his beneficiary 
a person who is a minor at the time of the application for 
refundment refund, and the amount of the refundment refund does 
not exceed $500 $1,500, exclusive of interest, the director in 
the absence of guardianship or probate proceedings may make 
payment to the natural guardian having custody of such minor 
beneficiary, for the benefit of such child.  Any annuity, 
retirement allowance or disability benefit which had accrued at 
the time of death of a disabled or retired employee, payable to 
a minor beneficiary, may similarly be paid, and such payment 
shall be a bar to recovery by any other person or persons.  
     Sec. 11.  Minnesota Statutes 1982, section 352.12, 
subdivision 10, is amended to read: 
    Subd. 10.  [DEATH OF BENEFICIARY BEFORE REFUNDMENT REFUND.] 
If the last designated beneficiary or beneficiaries and the 
surviving spouse of a (a) deceased employee, (b) former 
employee, or (c) retired employee, should die before receiving a 
refundment refund of the sum to the credit of the deceased 
employee, former employee or retired employee at the time of his 
death, the refundment refund shall be made to the estate of the 
deceased employee or as provided in subdivision 3 if the amount 
of the refundment refund does not exceed $500 $1,500 exclusive 
of interest.  
     Sec. 12.  Minnesota Statutes 1982, section 352.15, 
subdivision 1, is amended to read: 
    Subdivision 1.  None of the moneys, annuities, or other 
benefits mentioned herein shall be assignable either in law or 
in equity or be subject to execution, levy, attachment, 
garnishment, or other legal process, including actions for 
dissolution, legal separation, or child support, or to any state 
estate tax.  Provided, however, the executive director may pay 
an annuity, benefit or refund to a banking institution, 
qualified under chapter 48, that is trustee for a person 
eligible to receive such annuity, benefit or refund.  Upon the 
request of a retired, disabled or former employee, the executive 
director may mail the annuity, benefit or refund check to a 
banking institution, savings association or credit union for 
deposit to such employee's account or joint account with his 
spouse.  The board of directors may prescribe the conditions 
under which such payments will be made.  
     Sec. 13.  Minnesota Statutes 1982, section 352.22, 
subdivision 3, is amended to read: 
    Subd. 3.  [DEFERRED ANNUITY.] (1) Any employee with at 
least ten years of allowable service when such termination 
occurs may at his option leave his accumulated contributions in 
the fund and thereby be entitled to a deferred retirement 
annuity.  This annuity shall be computed in the manner provided 
by the law in effect at the time state service terminated, on 
the basis of allowable service prior to termination of service. 
    (2) An employee on layoff or on leave of absence without 
pay, except a leave of absence for health reasons, who does not 
return to state service shall have any annuity, deferred annuity 
or other benefit to which he may become entitled computed under 
the law in effect on his last working day. 
    (3) The provisions of Minnesota Statutes 1974, Section 
352.28, Subdivision 1, and Section 352.115, Subdivisions 4 and 5 
shall not apply to clauses (1) and (2).  
    (4) No application for a deferred annuity shall be made 
more than 60 days prior to the time the former employee reaches 
the required age to entitle him to the payment of the annuity.  
The deferred annuity shall begin to accrue no earlier than 60 
days prior to the date the application is filed in the office of 
the system except that if an optional annuity as provided in 
section 352.116 is selected the annuity shall begin to accrue 30 
days after the application is filed but in no event prior to the 
date the employee reaches the required age to entitle him to the 
annuity nor prior to the day following the termination of state 
service in a position not covered by the retirement system nor 
prior to the day following the termination of employment in a 
position which requires the employee to be a member of either 
the public employees retirement association or the teachers 
retirement association. 
    (5) (4) Application for the accumulated contributions left 
on deposit with the fund may be made at any time after 60 30 
days following the date of his termination of service.  
     Sec. 14.  Minnesota Statutes 1982, section 352.93, 
subdivision 1, is amended to read: 
    Subdivision 1.  After separation from state service an 
employee covered under section 352.91 who has attained the age 
of at least 55 years and has credit for not less than a total of 
ten years of covered correctional service and regular Minnesota 
state retirement system service shall be entitled upon 
application to a retirement annuity under this section based 
only on covered correctional employees' service.  Application 
may be made no earlier than 60 days prior to the date the 
benefit will begin to accrue employee is eligible to retire by 
reason of both age and service requirements.  
    For the purpose of this section, average salary means the 
average of the monthly salary during the employees' highest five 
successive years of salary as an employee covered by the 
Minnesota state retirement system.  
     Sec. 15.  Minnesota Statutes 1982, section 352.95, 
subdivision 4, is amended to read: 
    Subd. 4.  An applicant shall provide medical evidence to 
support an application for disability benefits.  The director 
shall have the employee examined by at least two one additional 
licensed physicians physician designated by the medical 
advisor.  These The physicians shall make written reports to the 
director concerning the employee's disability, including medical 
opinions as to whether he or she is disabled within the meaning 
of this section.  The director shall also obtain written 
certification from the employer stating whether the employee is 
on sick leave of absence because of a disability which will 
prevent further service to the employer, and as a consequence 
the employee is not entitled to compensation from the employer.  
If upon the consideration of the reports of the physicians and 
such other evidence as may have been supplied by the employee or 
others, the medical advisor finds the employee disabled within 
the meaning of this section, he shall make appropriate 
recommendation to the director in writing, together with the 
date from which the employee has been disabled, and the director 
shall thereupon determine the propriety of authorizing payment 
of a disability benefit as provided in this section.  Unless 
payment of a disability benefit has terminated because the 
employee is no longer disabled, or because he or she has reached 
age 62, the disability benefit shall cease with the last payment 
received by the disabled employee or which had accrued in his or 
her lifetime.  During the time that disability benefits are 
paid, the director shall have the right at reasonable times to 
require the disabled employee to submit proof of the continuance 
of the disability claimed.  If any examination indicates to the 
medical advisor that the employee is no longer disabled, the 
disability payment shall be discontinued upon reinstatement to 
state service or within 60 days of such finding, whichever is 
sooner.  
     Sec. 16.  Minnesota Statutes 1982, section 352.95, 
subdivision 5, is amended to read: 
    Subd. 5.  [RETIREMENT STATUS AT AGE 65.] The disability 
benefit paid to a disabled correctional employee hereunder shall 
terminate when at the end of the month in which the employee 
reaches age 62.  If the disabled correctional employee is still 
disabled when the employee reaches age 62, the employee shall be 
deemed to be a retired employee and, if the employee had elected 
an optional annuity pursuant to subdivision 1a, shall receive an 
annuity in accordance with the terms of the optional annuity 
previously elected, or, if the employee had not elected an 
optional annuity pursuant to subdivision 1a, may then either 
elect to receive a normal retirement annuity computed in the 
manner provided in section 352.115 or elect to receive an 
optional annuity as provided in section 352.116, subdivision 3, 
based on the same length of service as used in the calculation 
of the disability benefit.  Election of an optional annuity 
shall be made prior to attaining the age of 62 years.  The 
reduction for retirement prior to age 65 as provided in section 
352.116, subdivision 1, shall not be applicable.  The savings 
clause provision of section 352.93, subdivision 3, shall be 
applicable.  If an optional annuity is elected, the optional 
annuity shall begin to accrue on the first of the month 
following the month in which the employee attains the age of 62 
years.  
     Sec. 17.  Minnesota Statutes 1982, section 352B.01, 
subdivision 3, is amended to read: 
    Subd. 3.  "Allowable service" means (a) for those members 
defined in subdivision 2, clause (a), service for which payments 
have been made to the state patrol retirement fund, and (b) for 
those members defined in subdivision 2, clauses (b) and (c), 
service for which payments have been made to the state patrol 
retirement fund, service for which payments were made to the 
state police officers retirement fund after June 30, 1961, and 
all prior service which was credited to such member for service 
on or before June 30, 1961; provided that, after a member 
identified in clause (b) of this subdivision reaches the age of 
60, allowable service thereafter shall not be computed in 
determining his normal annuity unless he was employed as a state 
police officer before July 1, 1961.  If such member was so 
employed before July 1, 1961 and reaches 60 years of age and has 
more than 30 years' allowable service at such time, each year 
and completed month of allowable service acquired by such member 
shall be computed in determining his normal annuity until such 
member reaches the age of 60.  If such member was so employed 
before July 1, 1961, and has less than 30 years of allowable 
service when the member reaches age 60, each year and completed 
month of allowable service acquired by such member shall be 
computed in determining the normal annuity not to exceed 30 
years of such allowable service.  The completed year members 
reach age 60 may be counted in full in determining allowable 
service.  Allowable service also includes any period of absence 
from duty by a member who, by reason of injury incurred in the 
performance of duty, is temporarily disabled and for which 
disability the state is liable under the workers' compensation 
law, until the date authorized by the executive director for 
commencement of payment of a disability benefit or return to 
employment.  
     Sec. 18.  Minnesota Statutes 1982, section 352B.01, 
subdivision 9, is amended to read: 
    Subd. 9.  "Surviving spouse" means an association a 
member's or former member's legally married wife or husband 
residing with him at the time of his death and who was married 
to him, for a period of at least one year, while or prior to the 
time he was a member of the association.  
     Sec. 19.  Minnesota Statutes 1982, section 352B.01, 
subdivision 10, is amended to read:  
    Subd. 10.  "Dependent child" means any natural or adopted 
unmarried child of a deceased member under the age of 18 years, 
including any child of the member conceived during the lifetime 
of the member and born after the death of the member. 
    Sec. 20.  Minnesota Statutes 1982, section 352B.02, 
subdivision 1, is amended to read:  
     352B.02 [RETIREMENT ASSOCIATION FUND.] 
    Subdivision 1.  There is hereby established a state patrol 
retirement fund, the membership of which shall consist of all 
persons defined in section 352B.01, subdivision 2.  Each member 
shall pay a sum equal to 8.5 percent of the member's monthly 
salary.  Member contribution amounts shall be deducted monthly 
each pay period by the department head, who shall cause the 
total amount of the monthly deductions to be paid to the state 
treasurer, and shall cause a detailed report of all monthly 
deductions to be made each month pay period to the executive 
director of the Minnesota state retirement system.  In addition 
thereto, there shall be paid out of money appropriated to the 
departments for this purpose, monthly, by the department heads, 
a sum equal to 12 percent of the salary upon which deductions 
were made, and a sum equal to nine percent of the salaries upon 
which deductions were made for the purpose of amortizing the 
actuarial deficit of the fund.  These amounts shall be credited 
to the state patrol retirement fund.  All moneys received shall 
be deposited by the state treasurer in the state patrol 
retirement fund.  Out of the fund shall be paid the 
administrative expenses of the retirement fund, and the benefits 
and annuities as hereinafter provided.  The legislative auditor 
shall audit the fund and the executive director shall procure an 
actuarial study of the fund in accordance with chapter 356, the 
cost of which shall be borne by the fund.  
    Sec. 21.  Minnesota Statutes 1982, section 352B.03, 
subdivision 2, is amended to read: 
    Subd. 2.  [DUTIES OF TREASURER.] The state treasurer shall 
be ex officio treasurer of the state patrol retirement fund and 
his general bond to the state shall cover all liability for his 
actions as treasurer of the fund.  
    All moneys of the association fund received by the 
treasurer pursuant to this chapter, shall be set aside by him in 
the state treasury and credited to the state patrol retirement 
fund.  He shall transmit, monthly, to the director, a detailed 
statement showing all credits to and disbursements from said 
fund.  He shall disburse moneys from such fund only on warrants 
issued by the commissioner of finance upon vouchers signed by 
the director.  
    Sec. 22.  Minnesota Statutes 1982, section 352B.05, is 
amended to read: 
    352B.05 [INVESTMENTS.] 
    The state board of investment is hereby authorized to 
invest and reinvest such funds of the association portions of 
the state patrol retirement fund as in the judgment of the 
executive director of the Minnesota state retirement system are 
not needed for immediate purposes, in such securities as are 
duly authorized or legal investments for the Minnesota state 
retirement system, and shall have authority to sell, convey, and 
exchange such securities and invest and reinvest the funds when 
it deems it desirable to do so, and shall sell securities upon 
request from the executive director when the executive director 
determines funds are needed for its purposes.  All of the 
provisions regarding accounting procedures and restrictions and 
conditions for the purchase and sale of securities for the 
Minnesota state retirement system shall apply to the accounting, 
purchase and sale of securities for the state patrol retirement 
fund.  
    Sec. 23.  Minnesota Statutes 1982, section 352B.07, is 
amended to read: 
    352B.07 [ACTIONS BY OR AGAINST.] 
    The association board may sue or be sued in the name of the 
association board of directors of the state retirement system, 
and in all actions brought by or against it, the association 
board shall be represented by the attorney general who shall 
also be the legal adviser for the association board.  Venue of 
all actions shall be in the Ramsey county district court.  
    Sec. 24.  Minnesota Statutes 1982, section 352B.071, is 
amended to read: 
    352B.071 [EXEMPTION FROM PROCESS.] 
    None of the moneys, annuities, or other benefits provided 
for in this chapter shall be assignable either in law or in 
equity or be subject to execution, levy, attachment, 
garnishment, or other legal process, including actions for 
dissolution, legal separation, or child support.  
    Sec. 25.  Minnesota Statutes 1982, section 352B.08, 
subdivision 1, is amended to read: 
    Subdivision 1.  Every member who is credited with ten or 
more years of allowable service shall be entitled to separate 
himself from such state service and upon attaining the age of 55 
years, shall be entitled to receive a life annuity, upon his 
separation from state service.  Members shall make application 
for an annuity in a form and manner prescribed by the executive 
director.  No application may be made more than 60 days prior to 
the date the member is eligible to retire by reason of both age 
and service requirements.  An annuity shall begin to accrue no 
earlier than 90 days prior to the date the application is filed 
with the executive director.  
    Sec. 26.  [352B.101] [APPLICATION FOR DISABILITY BENEFIT.] 
    A member making claim for a disability benefit shall file a 
written application therefor in the office of the system in a 
form and manner prescribed by the executive director.  The 
member shall provide medical evidence to support the 
application.  The benefit shall begin to accrue the day 
following the commencement of disability or the day following 
the last day for which the member was paid, whichever is later, 
but in no event earlier than 90 days prior to the date the 
application is filed with the executive director.  
    Sec. 27.  Minnesota Statutes 1982, section 352B.105, is 
amended to read: 
    352B.105 [TERMINATION OF DISABILITY BENEFITS.] 
    All disability benefits payable under section 352B.10 shall 
terminate when at the end of the month the beneficiary becomes 
55 years of age.  If the beneficiary is still disabled when the 
beneficiary attains the age of 55 years, the beneficiary shall 
be deemed to be a retired member and, if the beneficiary had 
elected an optional annuity pursuant to section 352B.10, clause 
(6), shall receive an annuity in accordance with the terms of 
the optional annuity previously elected, or, if the beneficiary 
had not elected an optional annuity pursuant to section 352B.10, 
clause (6), may then elect to receive either a normal retirement 
annuity computed pursuant to section 352B.08, subdivision 1, or 
an optional annuity as provided in section 352B.08, subdivision 
2.  Election of an optional annuity shall be made prior to 
attaining the age of 55 years.  If an optional annuity is 
elected, the optional annuity shall begin to accrue the first of 
the month following the month in which the beneficiary attains 
the age of 55 years.  
    Sec. 28.  Minnesota Statutes 1982, section 352B.11, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REFUND OF PAYMENTS.] Should any member who 
does not qualify for has not received other benefits under this 
chapter become separated, either voluntarily or involuntarily, 
from state service that entitled him or her to be a member of 
the association, the member, or in the event of the member's 
death, the member's estate, shall be entitled to receive a 
refund of all payments which have been made by salary deductions 
upon application on a form prescribed by the executive director. 
    Sec. 29.  Minnesota Statutes 1982, section 352B.11, is 
amended by adding a subdivision to read:  
    Subd. 2a.  [APPLICATIONS FOR SURVIVOR BENEFITS.] An 
application for benefits under this section shall be filed in 
the office of the system in a form and manner prescribed by the 
executive director.  The benefit shall begin to accrue the day 
following the date of death but shall in no event be retroactive 
for more than six months prior to the date the application is 
filed.  
    Sec. 30.  Minnesota Statutes 1982, section 352B.11, 
subdivision 4, is amended to read: 
    Subd. 4.  [RE-ENTRY INTO STATE SERVICE.] Should any former 
member, who has become separated from state service that 
entitled him to be a member of the association and has received 
a refundment refund of his retirement payments, re-enter the 
state service in a position that entitles him to be a member of 
the association, he shall receive credit for the period of his 
prior allowable state service provided he repays into the fund 
the amount of his refundment refund, plus interest thereon at 
the rate of five percent per annum, at any time prior to his 
subsequent retirement.  Such Repayment may be made in 
installments as the state patrol retirement association shall 
direct or in a lump sum.  
    Sec. 31.  Minnesota Statutes 1982, section 352B.30, 
subdivision 1, is amended to read:  
    Subdivision 1.  [ENTITLEMENT TO ANNUITY.] Any person who 
has been an employee covered by the Minnesota state retirement 
system, or a member of the public employees retirement 
association including the public employees retirement 
association policemen and firefighter's fund, or the teachers 
retirement association, or the state patrol retirement 
association fund, or any other public employee retirement system 
in the state of Minnesota having a like provision but excluding 
all other funds providing benefits for policemen or firefighters 
shall be entitled when qualified to an annuity from each fund if 
his total allowable service in all funds or in any two of these 
funds totals ten or more years, provided no portion of the 
allowable service upon which the retirement annuity from one 
fund is based is again used in the computation for benefits from 
another fund and provided further that he has not taken a 
refundment refund from any one of these funds since his service 
entitling him to coverage under the system or his membership in 
any of the associations last terminated.  The annuity from each 
fund shall be determined by the appropriate provisions of the 
law except that the requirement that a person must have at least 
ten years allowable service in the respective system or 
association shall not apply for the purposes of this section 
provided the combined service in two or more of these funds 
equals ten or more years. 
    Sec. 32.  Minnesota Statutes 1982, section 352D.015, 
subdivision 9, is amended to read: 
    Subd. 9.  "Value" means cash value at the end of the month 
following receipt of an application in the case of applications 
received prior to the 21st day of any month, or at the end of 
the next succeeding month in the case of applications received 
after the 20th day of any month.  If no application is required, 
"value" means the cash value at the end of the month in which 
the event necessitating the transfer occurs.  
    Sec. 33.  Minnesota Statutes 1982, section 352D.02, 
subdivision 3, is amended to read: 
    Subd. 3.  An election to not participate is irrevocable 
during any period of covered employment.  An employee with 
employee shares to his credit in the unclassified program, after 
acquiring credit for ten years of allowable service but prior to 
termination of covered employment, may, notwithstanding other 
provisions of this subdivision, elect to terminate his 
participation in the unclassified plan and be covered by the 
regular plan by filing such election with the executive 
director.  The executive director shall thereupon redeem the 
employee's total shares and shall credit to the employee's 
account in the regular plan the amount of contributions that 
would have been so credited had the employee been covered by the 
regular plan during his entire covered employment.  The balance 
of moneys so redeemed and not credited to the employee's account 
shall be transferred to the state contribution reserve of the 
state employees retirement fund, except that the employee 
contribution paid to the unclassified plan in excess of that 
required by the general employee plan shall be refunded to the 
employee as provided in section 352.22.  
    Sec. 34.  Minnesota Statutes 1982, section 352D.04, 
subdivision 1, is amended to read: 
    Subdivision 1.  An employee exercising his option to 
participate in the retirement program provided by this chapter 
may elect to purchase shares in one or a combination of the 
income share account, the growth share account or the 
fixed-return account of the supplemental retirement fund in 
accordance with one of the following options: 
    (1) 100 percent invested in the income share account; 
    (2) 75 percent invested in the income share account and 25 
percent invested in the growth share account; 
    (3) 50 percent invested in the income share account and 50 
percent invested in the growth share account; 
    (4) 100 percent invested in the fixed-return account; or 
    (5) 75 percent invested in the fixed-return account and 25 
percent invested in the growth share account.  
    Prior to July 1 December 31 of each year, each participant 
may indicate in writing on forms provided by the Minnesota state 
retirement system his choice of options for subsequent purchases 
of shares.  For that year and Thereafter until a different 
written indication is made by such participant the executive 
director shall purchase shares in the supplemental fund as 
selected by the participant.  If no initial option is chosen, 
100 percent income shares shall be purchased for a participant.  
    Sec. 35.  Minnesota Statutes 1982, section 490.124, 
subdivision 1, is amended to read: 
    Subdivision 1.  [BASIC RETIREMENT ANNUITY.] Except as 
qualified hereinafter from and after mandatory retirement date, 
normal retirement date, early retirement date, or two years from 
the disability retirement date, as the case may be, a retirement 
annuity shall be payable to a retiring judge from the judges' 
retirement fund in an amount equal to:  (1) 2-1/2 percent of the 
judge's final average compensation multiplied by the number of 
years and fractions of years of allowable service rendered prior 
to July 1, 1980; plus (2) three percent of the judge's final 
average compensation multiplied by the number of years and 
fractions of years of allowable service rendered after June 30, 
1980; provided that the annuity shall not exceed 65 percent of 
the judge's annual salary for the year 12 months immediately 
preceding retirement.  
    Sec. 36.  [REPEAL.] 
     Minnesota Statutes 1982, sections 352.041, subdivision 6; 
352.115, subdivisions 4 and 5; 352.118; 352.1191; 352.22, 
subdivision 4; 352.71; 352.93, subdivisions 5 and 6; 352B.01, 
subdivision 8; 352B.02, subdivision 2; 352B.06; 352B.13; 
353B.261; and 353B.262, are repealed.  
    Sec. 37.  [EFFECTIVE DATE.] 
    This act is effective the day following final enactment, 
except for sections 1, 2, and 34, which are effective July 1, 
1983. 
    Approved May 10, 1983