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

                            CHAPTER 141-H.F.No. 617 
                  An act relating to retirement; various public pension 
                  plans; providing for the suspension or forfeiture of 
                  certain survivor benefits in the event of certain 
                  felonious deaths; making various individual and small 
                  group pension accommodations; making various pension 
                  plan administrative changes; recodifying the 
                  individual retirement account plan and making various 
                  other modifications; amending Minnesota Statutes 1994, 
                  sections 11A.23, subdivision 4; 352.12, subdivisions 
                  1, 2, 2a, and 6; 352B.105; 352D.02, subdivision 1; 
                  354.05, subdivisions 2a, 5, 35, and 40; 354.06, 
                  subdivision 4; 354.44, by adding a subdivision; 
                  354.52, subdivision 4a; 354A.011, subdivision 27, and 
                  by adding a subdivision; 354A.12, subdivision 3d; 
                  354A.31, by adding a subdivision; 355.61; 356.215, 
                  subdivisions 4d and 4g; 356.24, subdivision 1; 
                  383B.48; and 383B.49; proposing coding for new law in 
                  Minnesota Statutes, chapters 354B; 354C and 356; 
                  repealing Minnesota Statutes 1994, sections 352D.02, 
                  subdivision 1a; 354B.01; 354B.015; 354B.02; 354B.035; 
                  354B.04; 354B.045; 354B.05; 354B.06; 354B.07; 354B.08; 
                  354B.085; 354B.09; and 354B.15; Laws 1990, chapter 
                  570, article 3, sections 10 and 11, as amended; Laws 
                  1993, chapters 192, section 89, and 239, article 5, 
                  section 2; and Laws 1994, chapters 508, article 1, 
                  section 14; and 572, sections 11 and 12. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                      SUSPENSION OR FORFEITURE OF CERTAIN 
                       SURVIVOR BENEFITS IN THE EVENT OF 
                            CERTAIN FELONIOUS DEATHS 
           Section 1.  [356.305] [LOSS OF ENTITLEMENT TO BENEFITS FOR 
        SURVIVOR CAUSING DEATH OF PENSION PLAN MEMBER.] 
           Subdivision 1.  [DEFINITIONS.] (a) Each of the words or 
        terms defined in this subdivision has the meaning indicated. 
           (b) "Public pension plan" means any retirement plan or fund 
        enumerated in section 356.20, subdivision 2, or 356.30, 
        subdivision 3, any relief association governed by section 69.77 
        or sections 69.771 through 69.775, any retirement plan governed 
        by chapter 354B or 354C, the Hennepin county supplemental 
        retirement plan governed by sections 383B.46 through 383B.52, or 
        any housing and redevelopment authority retirement plan. 
           (c) "Public pension plan member" means a person who is a 
        participant covered by a public pension plan, a former 
        participant of a public pension plan who has sufficient service 
        to be entitled to receive a future retirement annuity or service 
        pension, a recipient of a retirement annuity, service pension, 
        or disability benefit from a public pension plan, or a former 
        participant of a public pension plan who has member or employee 
        contributions to the person's credit in the public pension plan. 
           (d) "Survivor" means the surviving spouse, a former spouse, 
        a surviving child, a joint annuitant, a designated recipient of 
        a second or remainder portion of an optional annuity form, a 
        beneficiary, or the estate of a deceased public pension plan 
        member, as those terms are commonly understood or defined in the 
        benefit plan document of the public pension plan. 
           (e) "Survivor benefit" means a surviving spouse benefit, 
        surviving child benefit, second or remainder portion of an 
        optional annuity form, a death benefit, a funeral benefit, or a 
        refund of member or employee contributions payable on account of 
        the death of a public pension plan member as provided for in the 
        benefit plan document of the public pension plan. 
           Subd. 2.  [SUSPENSION OF SURVIVOR BENEFITS UPON FELONY 
        CHARGE.] During the pendency of a charge of a survivor of a 
        felony that caused the death of a public pension plan member, of 
        criminal liability for a death by wrongful act felony, or of 
        conspiracy to commit a death by wrongful act felony, the 
        entitlement of that survivor to receive a survivor benefit is 
        suspended. 
           Subd. 3.  [FORFEITURE OF SURVIVOR BENEFITS UPON FELONY 
        CONVICTION.] Upon final conviction of a survivor of a felony 
        that caused the death of a public pension plan member, of 
        criminal liability for a death by wrongful act felony, or of 
        conspiracy to commit a death by wrongful act felony, the 
        entitlement of that survivor to receive a survivor benefit is 
        forfeited, including entitlement for any previously suspended 
        survivor benefits under subdivision 2. 
           Subd. 4.  [SUSPENSION OR FORFEITURE ACTIONS SEPARATE.] The 
        charge of one survivor under subdivision 2 or the conviction of 
        one survivor under subdivision 3 does not affect the entitlement 
        of another survivor to a survivor benefit. 
           Subd. 5.  [RECOVERY OF CERTAIN BENEFITS.] If monthly 
        benefits or a refund or balance of a participant or former 
        participant's account have already been paid to an individual 
        who is later charged or convicted as described under this 
        section, the executive director or chief administrative officer 
        of the public pension plan shall attempt to recover the amounts 
        paid.  Payment may be made to the next beneficiary or survivor 
        only in an amount equal to the amount recovered and in the 
        amount of any future payments that would legally accrue to 
        another survivor under the applicable laws of the retirement 
        plan. 
           Subd. 6.  [DISPOSITION OF FORFEITED SURVIVOR BENEFITS.] If 
        the benefit plan document governing the public pension plan does 
        not provide for the disposition of forfeited benefits, survivor 
        benefits forfeited under this section must be deposited in the 
        general fund of the state. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective on the day following final enactment 
        and applies to all applicable felony charges pending as of that 
        date. 
                                   ARTICLE 2 
               INDIVIDUAL AND SMALL GROUP PENSION ACCOMMODATIONS 
           Section 1.  [PURCHASE OF FULL-SERVICE CREDIT FOR SABBATICAL 
        LEAVE.] 
           Subdivision 1.  [ELIGIBILITY.] Notwithstanding Minnesota 
        Statutes, section 354.092, subdivision 3, a member of the 
        teachers retirement association described in subdivision 2 may 
        make a direct payment under subdivision 3 to the association to 
        receive service credit for a period of uncovered service due to 
        a sabbatical leave during the 1975-1976 fiscal year for which 
        the member failed to make employee payments on the difference 
        between salary during the leave and the salary for a comparable 
        period during the year immediately preceding the leave. 
           Subd. 2.  [APPLICATION.] Subdivision 1 applies to a member 
        who was on a sabbatical leave of absence during the 1975-1976 
        fiscal year, whose additional payment permitted for that fiscal 
        year was $313.46, who was attending an institute of higher 
        education outside Minnesota during the period of the leave, and 
        whose original payment deadline was June 30, 1977. 
           Subd. 3.  [PURCHASE PAYMENT AMOUNT.] (a) To purchase credit 
        for prior service under this section, there must be paid to the 
        teachers retirement association an amount equal to the present 
        value, on the date of payment, of the amount of the additional 
        retirement annuity obtained by the purchase of the additional 
        service credit.  Calculation of this amount must be made by the 
        executive director of the teachers retirement association using 
        the applicable preretirement interest rate of the association 
        specified in Minnesota Statutes, section 356.215, subdivision 
        4d, and the mortality table adopted for the association.  The 
        calculation must assume continuous future service in the 
        association until, and retirement at, the age at which the 
        minimum requirements of the fund for normal retirement or 
        retirement with an annuity unreduced for retirement at an early 
        age, including Minnesota Statutes, section 356.30, are met with 
        the additional service credit purchased.  The calculation must 
        also assume the person's actual salary and a future salary 
        history that includes annual salary increases at the applicable 
        salary increase rate for the fund or association specified in 
        Minnesota Statutes, section 356.215, subdivision 4d.  In order 
        to purchase the service credit, the individual must establish in 
        the records of the association proof of the sabbatical leave for 
        which the purchase of prior service applies.  The manner of 
        proof must be in accordance with procedures prescribed by the 
        executive director of the association. 
           (b) Payment must be made in one lump sum prior to July 1, 
        1995. 
           (c) Payment of the amount calculated under this subdivision 
        must be made by the member.  However, the current or former 
        employer of the member may, at its discretion, pay all or any 
        portion of the payment amount that exceeds $313.46 plus interest 
        at the rate of 8-1/2 percent a year compounded annually from 
        June 30, 1977, to the date on which the payment is made.  If the 
        employer agrees to payments under this paragraph, the employee 
        must make the employee payments required under this paragraph 
        prior to July 1, 1995.  If that employee payment is made, the 
        employing unit payment under this paragraph must be remitted to 
        the executive director of the teachers retirement association 
        within 30 days of receipt by the executive director of the 
        employee payments specified under this paragraph. 
           Subd. 4.  [SERVICE CREDIT GRANT.] Service credit for the 
        purchase period or periods must be granted to the account of the 
        eligible person upon receipt of the purchase payment amount 
        specified in subdivision 3.  
           Sec. 2.  [CERTAIN CITY ATTORNEY; ANNUITY COMPUTATION.] 
           A retired member of the public employees retirement 
        association who terminated a contract for employment as city 
        attorney for the city of West St. Paul on January 30, 1994, but 
        who continued to perform legal services for the city as an 
        independent contractor until the city retained a successor legal 
        counsel on May 9, 1994, may be deemed to have terminated public 
        service on January 30, 1994, and is eligible for the increased 
        accrual rate retirement incentive provided by Laws 1993, chapter 
        192, section 108, subdivision 3, notwithstanding the fact that 
        there was no interruption of legal service for 30 days after 
        January 30, 1994. 
           Sec. 3.  [TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF 
        PRIOR SERVICE CREDIT.] 
           Subdivision 1.  [ELIGIBILITY; MANKATO STATE UNIVERSITY 
        PROFESSOR.] (a) Notwithstanding any provision of Minnesota 
        Statutes, section 354.094, to the contrary, an eligible person 
        described in paragraph (b) is entitled to purchase allowable 
        service credit in the teachers retirement association for the 
        period described in paragraph (c) by paying the amount specified 
        in subdivision 3. 
           (b) An eligible person is a person who was granted an 
        extended leave of absence from employment by Mankato State 
        University on June 19, 1991, for the period September 11, 1991, 
        through June of 1994, and which leave was erroneously 
        characterized as an educational leave. 
           (c) The period for service credit purchase is the period 
        from September 11, 1991, through June 1994. 
           Subd. 2.  [PURCHASE PAYMENT AMOUNT.] (a) To purchase credit 
        under subdivision 1, there must be paid to the teachers 
        retirement association an amount equal to the present value on 
        the date of payment, of the amount of the additional retirement 
        annuity obtained by purchase of the additional service credit. 
           (b) Calculation of this amount must be made by the 
        executive director of the teachers retirement association using 
        the applicable preretirement interest rate specified in 
        Minnesota Statutes, section 356.215, subdivision 4d, and the 
        mortality table adopted for the coordinated program of the 
        retirement association.  The calculation must assume continuous 
        future service in the association until, and retirement at, the 
        age at which the minimum requirements of the retirement 
        association for normal retirement or retirement with an annuity 
        unreduced for retirement at an early age, including Minnesota 
        Statutes, section 356.30, are met with the additional service 
        credit purchased.  The calculation must also assume a future 
        salary history that includes annual salary increases at the 
        salary increase rate specified in Minnesota Statutes, section 
        356.215, subdivision 4d. 
           (c) The eligible person must establish in the records of 
        the association proof of the leave of absence for which the 
        purchase of service credit is requested.  The manner of the 
        proof must be in accordance with procedures prescribed by the 
        executive director of the retirement association. 
           (d) The portion of the total cost of the purchase payable 
        by the eligible person is specified in subdivision 3.  The 
        remaining portion of total cost is to be paid by the employing 
        unit as specified in subdivision 4. 
           Subd. 3.  [ELIGIBLE PERSON PAYMENT.] (a) To receive credit 
        for the period of service credit purchase specified in 
        subdivision 1, paragraph (c), the eligible person specified in 
        subdivision 1, paragraph (b), must pay a member contribution 
        equivalent amount. 
           (b) The member contribution equivalent amount is an amount 
        equal to the applicable employee contribution rate specified in 
        Minnesota Statutes, section 354.42, applied to the person's 
        actual salary rate in the year immediately preceding the 
        extended leave, plus 8.5 percent annually compounded interest 
        from June 30 of each year of the leave until payment is made.  
        Payment must be made in a lump sum.  Authority to make the 
        member contribution equivalent amount expires 90 days after the 
        effective date of this section or at the time of retirement, 
        whichever is earlier. 
           Subd. 4.  [MANDATORY EMPLOYING UNIT PAYMENT.] (a) Within 30 
        days of the receipt by the executive director of the teachers 
        retirement association of the payment from the eligible person 
        under subdivision 3, the employer employing the eligible person 
        described in subdivision 1, paragraph (b), immediately before 
        the leave described in subdivision 1, shall pay the difference 
        between the amounts specified in subdivisions 2 and 3. 
           (b) The mandatory employing unit payment amount is payable 
        by the governmental employing unit by July 1, 1998.  Payments 
        made after July 1, 1995, are payable with compound annual 
        interest at the rate of 8.5 percent from July 1, 1995, until the 
        date payment is made. 
           Subd. 5.  [SERVICE CREDIT GRANT.] Service credit for the 
        purchase period must be granted to the account of the eligible 
        person upon receipt of the purchase payment amount specified in 
        subdivision 2. 
           Sec. 4.  [PURCHASE OF PRIOR SERVICE CREDIT.] 
           Subdivision 1.  [ELIGIBILITY.] (a) Notwithstanding 
        Minnesota law to the contrary, an employee of Swift county who 
        is a current coordinated member of the public employee 
        retirement association, who was born in 1948, who first had 
        sufficient salary to meet minimum statutory salary thresholds 
        for association membership on March 1, 1990, but who was not 
        reported for membership until January 1991, may purchase 
        allowable service credit in the public employees retirement 
        association for the periods of uncovered service during which 
        the employee had sufficient salary to meet minimum statutory 
        salary thresholds for public employee retirement association 
        membership. 
           (b) In order to purchase the service credit, the individual 
        must establish in the records of the association proof of the 
        service for which the purchase of prior service applies, and 
        proof that the individual had sufficient salary during all or 
        part of that period to meet minimum statutory salary thresholds 
        for public employee retirement association membership.  Payments 
        cannot be made if the executive director determines that the 
        member was eligible for coverage during this period by another 
        Minnesota public pension plan other than a volunteer fire plan 
        to which Minnesota Statutes, section 69.771, subdivision 1, 
        applies.  The manner of proof must be in accordance with 
        procedures prescribed by the executive director of the 
        association. 
           Subd. 2.  [PURCHASE PAYMENT AMOUNT.] (a) To purchase credit 
        for prior service under this section, there must be paid to the 
        public employees retirement association an amount equal to the 
        present value, on the date of payment, of the amount of the 
        additional retirement annuity obtained by the purchase of the 
        additional service credit.  Calculation of this amount must be 
        made by the executive director of the public employees 
        retirement association using the applicable preretirement 
        interest rate of the association specified in Minnesota 
        Statutes, section 356.215, subdivision 4d, and the mortality 
        table adopted for the association.  The calculation must assume 
        continuous future service in the association until, and 
        retirement at, the age at which the minimum requirements of the 
        fund for normal retirement or retirement with an annuity 
        unreduced for retirement at an early age, including Minnesota 
        Statutes, section 356.30, are met with the additional service 
        credit purchased.  The calculation must also assume the person's 
        actual salary and a future salary history that includes annual 
        salary increases at the applicable salary increase rate for the 
        fund or association specified in Minnesota Statutes, section 
        356.215, subdivision 4d. 
           (b) Payment must be made in one lump sum prior to July 1, 
        1996. 
           (c) Payment of the amount calculated under this subdivision 
        must be made by the member.  However, the current or former 
        employer of the member may, at its discretion, pay all or any 
        portion of the payment amount that exceeds an amount equal to 
        the employee contribution rates in effect during the period or 
        periods of prior service applied to the actual salary rates in 
        effect during the period or periods of prior service, plus 
        interest at the rate of 8-1/2 percent a year compounded annually 
        from the date on which the contributions would otherwise have 
        been made to the date on which the payment is made.  If the 
        employer agrees to payments under this paragraph, the employee 
        must make the employee payments required under this paragraph 
        prior to July 1, 1996.  If that employee payment is made, the 
        employing unit payment under this paragraph must be remitted to 
        the executive director of the public employees retirement 
        association within 60 days of receipt by the executive director 
        of the employee payments specified under this paragraph. 
           Subd. 3.  [SERVICE CREDIT GRANT.] Service credit for the 
        purchase period or periods must be granted to the account of the 
        eligible person upon receipt of the purchase payment amount 
        specified in subdivision 2. 
           Sec. 5.  [EFFECTIVE DATE.] 
           (a) Section 1 is effective the day following final 
        enactment. 
           (b) Section 2 is effective the day following final 
        enactment and the annuity payable under section 2 must be 
        recalculated and paid retroactively to the date that the annuity 
        was first paid to the retiree. 
           (c) Section 3 is effective July 1, 1995. 
           (d) Section 4 is effective the day following final 
        enactment. 
                                   ARTICLE 3 
                     PENSION PLAN ADMINISTRATIVE PROVISIONS 
           Section 1.  Minnesota Statutes 1994, section 352.12, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEATH BEFORE TERMINATION OF SERVICE.] If 
        an employee dies before state service has terminated and neither 
        a survivor annuity nor a reversionary annuity is payable, or if 
        a former employee who has sufficient service credit to be 
        entitled to an annuity dies before the benefit has become 
        payable, the director shall make a refund to the last designated 
        beneficiary or, if there is none, to the surviving spouse or, if 
        none, to the employee's surviving children in equal shares or, 
        if none, to the employee's surviving parents in equal shares or, 
        if none, to the representative of the estate in an amount equal 
        to the accumulated employee contributions plus interest at the 
        rate of six percent per annum compounded annually.  Interest 
        must be computed as provided in section 352.22, subdivision 2, 
        to the first day of the month in which the refund is 
        processed and based on fiscal year balances.  Upon the death of 
        an employee who has received a refund that was later repaid in 
        full, interest must be paid on the repaid refund only from the 
        date of repayment.  If the repayment was made in installments, 
        interest must be paid only from the date installment payments 
        began.  The designated beneficiary, surviving spouse, or 
        representative of the estate of an employee who had received a 
        disability benefit is not entitled to interest upon any balance 
        remaining to the decedent's credit in the fund at the time of 
        death, unless death occurred before any payment could be 
        negotiated.  
           Sec. 2.  Minnesota Statutes 1994, section 352.12, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SURVIVING SPOUSE BENEFIT.] (a) If an employee or 
        former employee has credit for at least three years allowable 
        service and dies before an annuity or disability benefit has 
        become payable, notwithstanding any designation of beneficiary 
        to the contrary, the surviving spouse of the employee may elect 
        to receive, in lieu of the refund with interest under 
        subdivision 1, an annuity equal to the joint and 100 percent 
        survivor annuity which the employee or former employee could 
        have qualified for had the employee terminated service on the 
        date of death. 
           (b) If the employee 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 employee and surviving 
        spouse on the date of death.  The annuity is payable using the 
        full early retirement reduction under section 352.116, 
        subdivision 1, paragraph (a), to age 55 and one-half of the 
        early retirement reduction from age 55 to the age payment begins.
           (c) If the employee was under age 55 and has credit for at 
        least three years of allowable service credit on the date of 
        death but did not yet qualify for retirement, the surviving 
        spouse may elect to receive a 100 percent joint and survivor 
        annuity based on the age of the employee and surviving spouse at 
        the time of death.  The annuity is payable using the full early 
        retirement reduction under section 352.116, subdivision 1 or 1a, 
        to age 55 and one-half of the early retirement reduction from 
        age 55 to the age payment begins.  
           The surviving spouse eligible for surviving spouse benefits 
        under paragraph (a) may apply for the annuity at any time after 
        the date on which the deceased employee or former employee would 
        have attained the required age for retirement based on 
        the employee's allowable service earned.  The surviving spouse 
        eligible for surviving spouse benefits under paragraph (b) or 
        (c) may apply for the annuity at any time after the employee's 
        death.  The annuity must be computed under sections 352.115, 
        subdivisions 1, 2, and 3, and 352.116, subdivisions 1, 1a, and 
        3.  Sections 352.22, subdivision 3, and 352.72, subdivision 2, 
        apply to a deferred annuity or surviving spouse benefit payable 
        under this subdivision.  The annuity must cease with the last 
        payment received by the surviving spouse in the lifetime of the 
        surviving spouse, or upon expiration of a term certain benefit 
        payment to a surviving spouse under subdivision 2a.  An amount 
        equal to the excess, if any, of the accumulated contributions 
        credited to the account of the deceased employee in excess of 
        the total of the benefits paid and payable to the surviving 
        spouse must be paid to the deceased employee's or former 
        employee's last designated beneficiary or, if none, as specified 
        under subdivision 1.  
           Any employee or former employee may request in writing that 
        this subdivision not apply and that payment be made only to a 
        designated beneficiary as otherwise provided by this chapter. 
           Sec. 3.  Minnesota Statutes 1994, section 352.12, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [SURVIVING SPOUSE COVERAGE TERM CERTAIN.] In 
        lieu of the 100 percent optional annuity under subdivision 2, or 
        refund under subdivision 1, the surviving spouse of a deceased 
        employee or former employee may elect to receive survivor 
        coverage in a term certain of five, ten, 15, or 20 years, but 
        monthly payments must not exceed 75 percent of the average 
        high-five monthly salary of the deceased employee or former 
        employee.  The monthly term certain annuity must be actuarially 
        equivalent to the 100 percent optional annuity under subdivision 
        2. 
           If a survivor elects a term certain annuity and dies before 
        the expiration of the specified term certain period, the 
        commuted value of the remaining annuity payments must be paid in 
        a lump sum to the survivor's estate. 
           Sec. 4.  Minnesota Statutes 1994, section 352.12, 
        subdivision 6, is amended to read: 
           Subd. 6.  [DEATH AFTER SERVICE TERMINATION.] Except as 
        provided in subdivision 1, if a former employee covered by the 
        system dies and has not received an annuity, a retirement 
        allowance, or a disability benefit, a refund must be made to the 
        last designated beneficiary or, if there is none, to the 
        surviving spouse or, if none, to the employee's surviving 
        children in equal shares or, if none, to the employee's 
        surviving parents in equal shares or, if none, to the 
        representative of the estate in an amount equal to accumulated 
        employee contributions.  The refund must include interest at the 
        rate of six percent per year compounded annually.  The interest 
        must be computed to the first day of the month in which the 
        refund is processed and be based on fiscal year balances as 
        provided in section 352.22, subdivision 2. 
           Sec. 5.  Minnesota Statutes 1994, section 352B.105, is 
        amended to read: 
           352B.105 [TERMINATION OF DISABILITY BENEFITS.] 
           Disability benefits payable under section 352B.10 shall 
        terminate at the end of the month the beneficiary becomes 55 65 
        years old.  If the beneficiary is still disabled when the 
        beneficiary becomes 55 65 years old, the beneficiary shall be 
        deemed to be a retired member and, if the beneficiary had chosen 
        an optional annuity under section 352B.10, subdivision 5, shall 
        receive an annuity in accordance with the terms of the optional 
        annuity previously chosen.  If the beneficiary had not chosen an 
        optional annuity under section 352B.10, subdivision 5, the 
        beneficiary may choose to receive either a normal retirement 
        annuity computed under section 352B.08, subdivision 2, or an 
        optional annuity as provided in section 352B.08, subdivision 3. 
        An optional annuity must be chosen within 90 days of attaining 
        age 65 or reaching the five-year anniversary of the effective 
        date of the disability benefit, whichever is later.  If an 
        optional annuity is chosen, the optional annuity shall begin to 
        accrue the first of the month following attainment of age 65 or 
        the five-year anniversary of the effective date of the 
        disability benefit, whichever is later. 
           Sec. 6.  Minnesota Statutes 1994, section 354.05, 
        subdivision 5, is amended to read: 
           Subd. 5.  [MEMBER OF FUND ASSOCIATION.] "Member of fund 
        association" means every teacher who joins and contributes to 
        the teachers retirement fund as provided in this chapter who has 
        not retired, except a teacher covered by section 354B.02, 
        subdivision 2 or 3, who elects to participate in the individual 
        retirement account plan under chapter 354B, or a teacher who 
        exercises an option to elect coverage under another public 
        pension plan enumerated in section 356.30, subdivision 3.  Any 
        former member of the fund association who is retired and 
        subsequently resumes teaching service is a member of the 
        fund association only for purposes of social security coverage. 
           Sec. 7.  Minnesota Statutes 1994, section 354.05, 
        subdivision 35, is amended to read: 
           Subd. 35.  [SALARY.] (a) "Salary" means the compensation, 
        upon which member contributions are required and made, that is 
        paid to a teacher before employee-paid fringe benefits, tax 
        sheltered annuities, deferred compensation, or any combination 
        of these employee-paid items are deducted. 
           (b) "Salary" does not mean: 
           (1) lump sum annual leave payments; 
           (2) lump sum wellness and sick leave payments; 
           (3) payments in lieu of any employer-paid group insurance 
        coverage; 
           (4) payments for the difference between single and family 
        premium rates that may be paid to a member with single coverage; 
           (5) employer-paid fringe benefits including, but not 
        limited to, flexible spending accounts, cafeteria plans, health 
        care expense accounts, day care expenses, or automobile 
        allowances and expenses; 
           (6) any form of payment made in lieu of any other 
        employer-paid fringe benefit or expense; 
           (7) any form of severance payments; 
           (8) workers' compensation payments; 
           (9) disability insurance payments including self-insured 
        disability payments; 
           (10) payments to school principals and all other 
        administrators for services in addition to the normal work year 
        contract if these additional services are performed on an 
        extended duty day, Saturday, Sunday, holiday, annual leave day, 
        sick leave day, or any other nonduty day; 
           (11) payments under section 356.24, subdivision 1, clause 
        (4)(ii); and 
           (12) payments made under section 125.12, subdivision 7, 
        except for payments for sick leave accumulated under the 
        provisions of a uniform school district policy that applies 
        equally to all similarly situated persons in the district. 
           Sec. 8.  Minnesota Statutes 1994, section 354.05, 
        subdivision 40, is amended to read: 
           Subd. 40.  [TIMELY RECEIPT.] An application, payment, 
        return, claim, or other document that is not personally 
        delivered to the association on or before the applicable due 
        date is considered to be a timely receipt if officially 
        postmarked on or before the due date or delivered or filed under 
        section 645.151. 
           Sec. 9.  Minnesota Statutes 1994, section 354.06, 
        subdivision 4, is amended to read: 
           Subd. 4.  [TREASURER; DUTIES BOARD; EXPENSES.] All members 
        of the board shall serve without compensation.  A member shall 
        receive necessary expenses to attend meetings of the board and 
        its committees, and association functions and presentations 
        authorized by the board.  The necessary expenses must be paid 
        out of the fund.  Members of the board shall suffer no loss of 
        compensation from their employing units by reason of service on 
        or for the association, the board, or any committee authorized 
        by the board.  Necessary expenses may include the salary of any 
        substitute teacher which the employing unit is required to hire 
        in the absence of the board member.  The board may reimburse the 
        employing unit for the cost of the substitute teacher. 
           Sec. 10.  Minnesota Statutes 1994, section 354.44, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [DETERMINING APPLICABLE LAW.] An employee who 
        returns to covered service following a termination and who is 
        not receiving a retirement annuity under this section must have 
        earned at least 85 days of credited service following the return 
        to covered service to be eligible for improved benefits 
        resulting from any law change enacted subsequent to that 
        termination. 
           Sec. 11.  Minnesota Statutes 1994, section 354.52, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [MEMBER DATA REPORTING REQUIREMENTS.] (a) An 
        employing unit shall initially provide the following member data 
        or any of that data not previously provided to the association 
        for payroll warrants dated after June 30, 1995, in a format 
        prescribed by the executive director.  Data changes and the 
        dates of those changes must be reported to the association on an 
        ongoing basis for the payroll cycle in which they occur with the 
        data under subdivision 4b.  Data on the member includes:  
           (1) legal name, address, date of birth, association member 
        number, employer-assigned employee number, and social security 
        number; 
           (2) association status, including, but not limited to, 
        basic, coordinated, exempt annuitant, exempt technical college 
        teacher, and exempt independent contractor or consultant; 
           (3) employment status, including, but not limited to, full 
        time, part time, intermittent, substitute, or part-time 
        mobility; 
           (4) employment position, including, but not limited to, 
        teacher, superintendent, principal, administrator, or other; 
           (5) employment activity, including, but not limited to, 
        hire, termination, resumption of employment, disability, or 
        death; 
           (6) leaves of absence; 
           (7) county district number assigned by the association for 
        the employing unit; 
           (8) data center identification number, if applicable; and 
           (9) other information as may be required by the executive 
        director. 
           Sec. 12.  Minnesota Statutes 1994, section 354A.12, 
        subdivision 3d, is amended to read: 
           Subd. 3d.  [SUPPLEMENTAL ADMINISTRATIVE EXPENSE 
        ASSESSMENT.] (a) The active and retired membership of the 
        Minneapolis teachers retirement fund association and of the St. 
        Paul teachers retirement fund association is responsible for 
        defraying supplemental administrative expenses other than 
        investment expenses of the respective teacher retirement fund 
        association. 
           (b) Investment expenses of the teachers retirement fund 
        association are those expenses incurred by or on behalf of the 
        retirement fund in connection with the investment of the assets 
        of the retirement fund other than investment security 
        transaction costs.  Other administrative expenses are all 
        expenses incurred by or on behalf of the retirement fund for all 
        other retirement fund functions other than the investment of 
        retirement fund assets.  Investment and other administrative 
        expenses must be accounted for using generally accepted 
        accounting principles and in a manner consistent with the 
        comprehensive annual financial report of the teachers retirement 
        fund association for the immediately previous fiscal year under 
        section 356.20. 
           (c) Supplemental administrative expenses other than 
        investment expenses of a first class city teacher retirement 
        fund association are those expenses for the fiscal year that 
        exceed the amount computed by applying the most recent 
        percentage of pay administrative expense amount, other than 
        investment expenses, for the teachers retirement association 
        governed by chapter 354 to the covered payroll of the respective 
        teachers retirement fund association for the fiscal year. 
           (d) The board of trustees of each first class city teachers 
        retirement fund association shall allocate the total dollar 
        amount of supplemental administrative expenses other than 
        investment expenses among the various active and retired 
        membership groups of the teachers retirement fund association 
        and shall assess the various membership groups their respective 
        share of the supplemental administrative expenses other than 
        investment expenses, in amounts determined by the board of 
        trustees.  The supplemental administrative expense assessments 
        must be paid by the membership group in a manner determined by 
        the board of trustees of the respective teachers retirement 
        association.  Supplemental administrative expenses payable by 
        the active members of the pension plan must be picked up by the 
        employer in accordance with section 356.62. 
           (e) With respect to the St. Paul teachers retirement fund 
        association, the supplemental administrative expense assessment 
        must be fully disclosed to the various active and retired 
        membership groups of the teachers retirement fund association.  
        The chief administrative officer of the St. Paul teachers 
        retirement fund association shall prepare a supplemental 
        administrative expense assessment disclosure notice, which must 
        include the following: 
           (1) the total amount of administrative expenses of the St. 
        Paul teachers retirement fund association, the amount of the 
        investment expenses of the St. Paul teachers retirement fund 
        association, and the net remaining amount of administrative 
        expenses of the St. Paul teachers retirement fund association; 
           (2) the amount of administrative expenses for the St. Paul 
        teachers retirement fund association that would be equivalent to 
        the teachers retirement association noninvestment administrative 
        expense level described in paragraph (c); 
           (3) the total amount of supplemental administrative 
        expenses required for assessment calculated under paragraph (c); 
           (4) the portion of the total amount of the supplemental 
        administrative expense assessment allocated to each membership 
        group and the rationale for that allocation; 
           (5) the manner of collecting the supplemental 
        administrative expense assessment from each membership group, 
        the number of assessment payments required during the year, and 
        the amount of each payment or the procedure used to determine 
        each payment; and 
           (6) any other information that the chief administrative 
        officer determines is necessary to fairly portray the manner in 
        which the supplemental administrative expense assessment was 
        determined and allocated. 
           (f) The disclosure notice must be provided annually in the 
        annual report of the association. 
           (g) The supplemental administrative expense assessments 
        must be deposited in the applicable teachers retirement fund 
        upon receipt. 
           (f) (h) Any omitted active membership group assessments 
        that remain undeducted and unpaid to the teachers retirement 
        fund association for 90 days must be paid by the respective 
        school district.  The school district may recover any omitted 
        active membership group assessment amounts that it has 
        previously paid.  The teachers retirement fund association shall 
        deduct any omitted retired membership group assessment amounts 
        from the benefits next payable after the discovery of the 
        omitted amounts. 
           Sec. 13.  Minnesota Statutes 1994, section 354A.31, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [DETERMINING APPLICABLE LAW.] An employee who 
        returns to covered service following a termination and who is 
        not receiving a retirement annuity under this section must have 
        earned at least 85 days of credited service following the return 
        to covered service to be eligible for improved benefits 
        resulting from any law change enacted subsequent to that 
        termination. 
           Sec. 14.  Minnesota Statutes 1994, section 356.215, 
        subdivision 4d, is amended to read: 
           Subd. 4d.  [INTEREST AND SALARY ASSUMPTIONS.] (a) For funds 
        governed by chapters 352, 352B, 353, 353C, and 354 by sections 
        352.90 through 352.951 and 353.63 through 353.68, the actuarial 
        valuation must use a preretirement interest assumption of 8.5 
        percent, a postretirement interest assumption of five percent, 
        and a future salary increase assumption of 6.5 percent. 
           (b) For funds governed by chapter 354A, the actuarial 
        valuation must use preretirement and postretirement assumptions 
        of 8.5 percent and a future salary increase assumption of 6.5 
        percent, but the actuarial valuation must reflect the payment of 
        postretirement adjustments to retirees, based on the methods 
        specified in the bylaws of the fund as approved by the 
        legislature.  For a fund governed by chapter 422A, the actuarial 
        valuation shall use a preretirement interest assumption of six 
        percent, a postretirement interest assumption of five percent, 
        and an assumption that in each future year the salary on which a 
        retirement or other benefit is based is 1.04 multiplied by the 
        salary for the preceding year.  
           (c) For all other funds not specified in paragraph (a), 
        (b), or (d), or (e), the actuarial valuation must use a 
        preretirement interest assumption of five percent, a 
        postretirement interest assumption of five percent, and a future 
        salary increase assumption of 3.5 percent. 
           (d) For funds governed by chapters 3A, 352C, and 490, the 
        actuarial valuation must use a preretirement interest assumption 
        of 8.5 percent, a postretirement interest assumption of five 
        percent, and a future salary increase assumption of 6.5 percent 
        in each future year in which the salary amount payable is not 
        determinable from section 3.099, 15A.081, subdivision 6, or 
        15A.083, subdivision 1, whichever applies, or from applicable 
        compensation council recommendations under section 15A.082. 
           (e) For funds governed by sections 352.01 through 352.86, 
        353.01 through 353.46, and chapter 354, the actuarial valuation 
        must use a preretirement interest assumption of 8.5, a 
        postretirement interest assumption of five percent, and a graded 
        rate future salary increase assumption as follows: 
                General state   General public   
                  employees       employees         Teachers  
                 retirement      retirement        retirement 
         age        plan            plan              plan 
         16        7.2500%         8.71%              7.25%
         17        7.2500          8.71               7.25 
         18        7.2500          8.70               7.25 
         19        7.2500          8.70               7.25 
         20        7.2500          7.70               7.25 
         21        7.1454          7.70               7.25 
         22        7.1094          7.70               7.25 
         23        7.0725          7.70               7.20 
         24        7.0363          7.70               7.15 
         25        7.0000          7.60               7.10 
         26        7.0000          7.51               7.05 
         27        7.0000          7.39               7.00 
         28        7.0000          7.30               7.00 
         29        7.0000          7.20               7.00 
         30        7.0000          7.20               7.00 
         31        7.0000          7.10               7.00 
         32        7.0000          7.10               7.00 
         33        7.0000          7.00               7.00 
         34        7.0000          7.00               7.00 
         35        7.0000          6.90               7.00 
         36        6.9019          6.80               7.00 
         37        6.8074          6.70               7.00 
         38        6.7125          6.60               6.90 
         39        6.6054          6.50               6.80 
         40        6.5000          6.40               6.70 
         41        6.3540          6.30               6.60 
         42        6.2087          6.30               6.50 
         43        6.0622          6.30               6.35 
         44        5.9048          6.20               6.20 
         45        5.7500          6.20               6.05 
         46        5.6940          6.09               5.90 
         47        5.6375          6.00               5.75 
         48        5.5822          5.90               5.70 
         49        5.5405          5.80               5.65 
         50        5.5000          5.70               5.60 
         51        5.4384          5.70               5.55 
         52        5.3776          5.70               5.50 
         53        5.3167          5.70               5.45 
         54        5.2826          5.70               5.40 
         55        5.2500          5.70               5.35 
         56        5.2500          5.70               5.30 
         57        5.2500          5.70               5.25 
         58        5.2500          5.70               5.25 
         59        5.2500          5.70               5.25 
         60        5.2500          5.00               5.25 
         61        5.2500          5.00               5.25 
         62        5.2500          5.00               5.25 
         63        5.2500          5.00               5.25 
         64        5.2500          5.00               5.25 
         65        5.2500          5.00               5.25 
         66        5.2500          5.00               5.25 
         67        5.2500          5.00               5.25 
         68        5.2500          5.00               5.25 
         69        5.2500          5.00               5.25 
         70        5.2500          5.00               5.25 
           Sec. 15.  Minnesota Statutes 1994, section 356.215, 
        subdivision 4g, is amended to read: 
           Subd. 4g.  [AMORTIZATION CONTRIBUTIONS.] (a) In addition to 
        the exhibit indicating the level normal cost, the actuarial 
        valuation must contain an exhibit indicating the additional 
        annual contribution sufficient to amortize the unfunded 
        actuarial accrued liability.  For funds governed by chapters 3A, 
        352, 352B, 352C, 353, 353C, 354, 354A, and 490, the additional 
        contribution must be calculated on a level percentage of covered 
        payroll basis by the established date for full funding in effect 
        when the valuation is prepared.  For funds governed by chapter 
        3a, sections 352.90 through 352.951, chapter 352B, chapter 352C, 
        sections 353.63 through 353.68, chapter 353C, chapter 354A, and 
        chapter 490, the level percent additional contribution must be 
        calculated assuming annual payroll growth of 6.5 percent.  For 
        funds governed by sections 352.01 through 352.86 and chapter 
        354, the level percent additional contribution must be 
        calculated assuming an annual payroll growth of five percent.  
        For the fund governed by sections 353.01 through 353.46, the 
        level percent additional contribution must be calculated 
        assuming an annual payroll growth of six percent.  For all other 
        funds, the additional annual contribution must be calculated on 
        a level annual dollar amount basis. 
           (b) For any fund other than the Minneapolis employees 
        retirement fund, after the first actuarial valuation date 
        occurring after June 1, 1989, if there has not been a change in 
        the actuarial assumptions used for calculating the actuarial 
        accrued liability of the fund, a change in the benefit plan 
        governing annuities and benefits payable from the fund, a change 
        in the actuarial cost method used in calculating the actuarial 
        accrued liability of all or a portion of the fund, or a 
        combination of the three, which change or changes by themselves 
        without inclusion of any other items of increase or decrease 
        produce a net increase in the unfunded actuarial accrued 
        liability of the fund, the established date for full funding for 
        the first actuarial valuation made after June 1, 1989, and each 
        successive actuarial valuation is the first actuarial valuation 
        date occurring after June 1, 2020.  
           (c) For any fund or plan other than the Minneapolis 
        employees retirement fund, after the first actuarial valuation 
        date occurring after June 1, 1989, if there has been a change in 
        any or all of the actuarial assumptions used for calculating the 
        actuarial accrued liability of the fund, a change in the benefit 
        plan governing annuities and benefits payable from the fund, a 
        change in the actuarial cost method used in calculating the 
        actuarial accrued liability of all or a portion of the fund, or 
        a combination of the three, and the change or changes, by 
        themselves and without inclusion of any other items of increase 
        or decrease, produce a net increase in the unfunded actuarial 
        accrued liability in the fund, the established date for full 
        funding must be determined using the following procedure:  
           (i) the unfunded actuarial accrued liability of the fund 
        must be determined in accordance with the plan provisions 
        governing annuities and retirement benefits and the actuarial 
        assumptions in effect before an applicable change; 
           (ii) the level annual dollar contribution or level 
        percentage, whichever is applicable, needed to amortize the 
        unfunded actuarial accrued liability amount determined under 
        item (i) by the established date for full funding in effect 
        before the change must be calculated using the interest 
        assumption specified in subdivision 4d in effect before the 
        change; 
           (iii) the unfunded actuarial accrued liability of the fund 
        must be determined in accordance with any new plan provisions 
        governing annuities and benefits payable from the fund and any 
        new actuarial assumptions and the remaining plan provisions 
        governing annuities and benefits payable from the fund and 
        actuarial assumptions in effect before the change; 
           (iv) the level annual dollar contribution or level 
        percentage, whichever is applicable, needed to amortize the 
        difference between the unfunded actuarial accrued liability 
        amount calculated under item (i) and the unfunded actuarial 
        accrued liability amount calculated under item (iii) over a 
        period of 30 years from the end of the plan year in which the 
        applicable change is effective must be calculated using the 
        applicable interest assumption specified in subdivision 4d in 
        effect after any applicable change; 
           (v) the level annual dollar or level percentage 
        amortization contribution under item (iv) must be added to the 
        level annual dollar amortization contribution or level 
        percentage calculated under item (ii); 
           (vi) the period in which the unfunded actuarial accrued 
        liability amount determined in item (iii) is amortized by the 
        total level annual dollar or level percentage amortization 
        contribution computed under item (v) must be calculated using 
        the interest assumption specified in subdivision 4d in effect 
        after any applicable change, rounded to the nearest integral 
        number of years, but not to exceed 30 years from the end of the 
        plan year in which the determination of the established date for 
        full funding using the procedure set forth in this clause is 
        made and not to be less than the period of years beginning in 
        the plan year in which the determination of the established date 
        for full funding using the procedure set forth in this clause is 
        made and ending by the date for full funding in effect before 
        the change; and 
           (vii) the period determined under item (vi) must be added 
        to the date as of which the actuarial valuation was prepared and 
        the date obtained is the new established date for full funding.  
           (d) For the Minneapolis employees retirement fund, the 
        established date for full funding is June 30, 2020. 
           (e) For the public employees retirement association police 
        and fire fund, an excess of valuation assets over actuarial 
        accrued liability will be amortized in the same manner over the 
        same period as an unfunded actuarial accrued liability but will 
        serve to reduce the required contribution instead of increasing 
        it. 
           Sec. 16.  Minnesota Statutes 1994, section 356.24, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RESTRICTION; EXCEPTIONS.] (a) It is 
        unlawful for a school district or other governmental subdivision 
        or state agency to levy taxes for, or contribute public funds to 
        a supplemental pension or deferred compensation plan that is 
        established, maintained, and operated in addition to a primary 
        pension program for the benefit of the governmental subdivision 
        employees other than: 
           (1) to a supplemental pension plan that was established, 
        maintained, and operated before May 6, 1971; 
           (2) to a plan that provides solely for group health, 
        hospital, disability, or death benefits,; 
           (3) to the individual retirement account plan established 
        by sections 354B.01 to 354B.05; 
           (3) (4) to a plan that provides solely for severance pay 
        under section 465.72 to a retiring or terminating employee; 
           (4) (5) for employees other than personnel employed by the 
        state university board or the community college board and 
        covered by section 354B.07, subdivision 1, to: 
           (i) the state of Minnesota deferred compensation plan under 
        section 352.96; or 
           (ii) payment of the applicable portion of the premium on a 
        tax sheltered annuity contract qualified under section 403(b) of 
        the federal Internal Revenue Code, purchased from a qualified 
        insurance company; if provided for in a personnel policy of the 
        public employer or in the collective bargaining agreement of 
        between the public employer with and the exclusive 
        representative of public employees in an appropriate unit, in an 
        amount matching employee contributions on a dollar for dollar 
        basis, but not to exceed an employer contribution of $2,000 a 
        year per employee; 
           (i) to the state of Minnesota deferred compensation plan 
        under section 352.96; or 
           (ii) in payment of the applicable portion of the premium on 
        a tax-sheltered annuity contract qualified under section 403(b) 
        of the Internal Revenue Code, if purchased from a qualified 
        insurance company, and if the employing unit has complied with 
        any applicable pension plan provisions of the Internal Revenue 
        Code with respect to the tax-sheltered annuity program during 
        the preceding calendar year; or 
           (5) (6) for personnel employed by the state university 
        board or the community college board and covered by sections 
        352D.02, subdivision 1a, and 354B.07, subdivision 1, to the 
        supplemental retirement plan under sections 354B.07 to 354B.09, 
        if provided for in a personnel policy or in the collective 
        bargaining agreement of the public employer with the exclusive 
        representative of the covered employees in an appropriate unit, 
        in an amount matching employee contributions on a dollar for 
        dollar basis, but not to exceed an employer contribution of 
        $2,000 a year for each employee.  
           (b) A qualified insurance company is a company that: 
           (1) meets the definition in section 60A.02, subdivision 4; 
           (2) is licensed to engage in life insurance or annuity 
        business in the state; 
           (3) is determined by the commissioner of commerce to have a 
        rating within the top two rating categories by a recognized 
        national rating agency or organization that regularly rates 
        insurance companies; and 
           (4) is determined by the state board of investment to be 
        among the ten applicant insurance companies with competitive 
        options and investment returns on annuity products.  The state 
        board of investment determination must be made on or before 
        January 1, 1993, and must be reviewed periodically.  The state 
        board of investment may retain actuarial services to assist it 
        in this determination and in its periodic review.  The state 
        board of investment may annually establish a budget for its 
        costs in any determination and periodic review processes.  The 
        state board of investment may charge a proportional share of all 
        costs related to the periodic review to those companies 
        currently under contract and may charge a proportional share of 
        all costs related to soliciting and evaluating bids in a 
        determination process to each company selected by the state 
        board of investment.  All contracts must be approved before 
        execution by the state board of investment.  The state board of 
        investment shall establish policies and procedures under section 
        11A.04, clause (2), to carry out this paragraph. 
           (c) A personnel policy for unrepresented employees or a 
        collective bargaining agreement may establish limits on the 
        number of vendors under paragraph (b), clause (4) (5), that it 
        will utilize and conditions under which the vendors may contact 
        employees both during working hours and after working hours. 
           Sec. 17.  Minnesota Statutes 1994, section 383B.48, is 
        amended to read: 
           383B.48 [PURCHASE OF SHARES IN MINNESOTA SUPPLEMENTAL 
        INVESTMENT FUND.] 
           At the time a person becomes eligible for coverage and 
        elects to obtain coverage by the Hennepin county supplemental 
        retirement program and prior to July before November 1 of each 
        subsequent year, a participant in the Hennepin county 
        supplemental retirement program shall indicate in writing on a 
        form provided by the county of Hennepin the account of the 
        Minnesota supplemental investment fund in which the participant 
        wishes salary deductions and county matching contributions 
        attributable to salary deductions to be invested for that fiscal 
        year the subsequent 12-month period.  For that fiscal 
        year 12-month period the county of Hennepin shall purchase with 
        the salary deductions and county matching funds attributable to 
        the salary deductions shares in the appropriate account of the 
        Minnesota supplemental investment fund in accordance with the 
        indicated preferences of the participant.  However, the county 
        of Hennepin has the authority to determine which accounts of the 
        Minnesota supplemental investment fund will be available for 
        participant investment.  The shares purchased shall must stand 
        in the name of the county of Hennepin.  A record shall must be 
        kept by the county of Hennepin indicating the number of shares 
        in each account of the Minnesota supplemental investment fund 
        purchased with the salary deductions and county matching funds 
        attributable to the salary deductions of each participant.  The 
        record shall must be known as the "participant's share account 
        record."  The participant's share account record shall must 
        show, in addition to the number of shares therein in the 
        account, any cash balance of salary deductions or county 
        matching funds attributable to those deductions which stand 
        uninvested in shares.  At the option of the county of Hennepin, 
        and subject to any terms and conditions established and 
        communicated in writing by the county to a participant, the 
        participant may designate no more often than once each fiscal 
        year calendar quarter that prior salary deductions and county 
        matching contributions attributable to the salary 
        deductions from prior fiscal years, together with any interest 
        earned, be reinvested in another account of the Minnesota 
        supplemental investment fund made available by the county of 
        Hennepin. 
           Sec. 18.  Minnesota Statutes 1994, section 383B.49, is 
        amended to read: 
           383B.49 [SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF 
        SHARES.] 
           When requested to do so, in writing, on forms provided by 
        the county, by a participant, surviving spouse, a guardian of a 
        surviving child or an estate a personal representative, 
        whichever is applicable, the county of Hennepin shall redeem 
        shares in the accounts of the Minnesota supplemental investment 
        fund standing in a participant's share account record under the 
        following circumstances and in accordance with the laws and 
        regulations governing the Minnesota supplemental investment fund:
           (1) A participant who is no longer employed by the county 
        of Hennepin shall be is entitled to receive the cash realized on 
        the redemption of the shares to the credit of the participant's 
        share account record of the person.  The participant may request 
        the redemption of all or a portion of the shares in the 
        participant's share account record of the person, but may not 
        request more than one redemption in any one calendar year.  If 
        only a portion of the shares in the participant's share account 
        record is requested to be redeemed the person may request to 
        redeem not less than 20 percent of the shares in any one 
        calendar year and the redemption must be completed in no more 
        than five years.  An election is irrevocable except that a 
        participant may request an amendment of the election to redeem 
        all of the person's remaining shares.  All requests under this 
        paragraph are subject to application to and approval of the 
        Hennepin county board, in its sole discretion.  
           (2) In the event of the death of a participant leaving a 
        surviving spouse, the surviving spouse shall be is entitled to 
        receive the cash realized on the redemption of all or a portion 
        of the shares in the participant's share account record of the 
        deceased spouse, but in no event may the spouse request more 
        than one redemption in each calendar year.  If only a portion of 
        the shares in the participant's share account record is 
        requested to be redeemed, the surviving spouse may request the 
        redemption of not less than 20 percent of the shares in any one 
        calendar year.  Redemption must be completed in no more than 
        five years.  An election is irrevocable except that the 
        surviving spouse may request an amendment of the election to 
        redeem all of the participant's remaining shares.  All requests 
        under this paragraph are subject to application to and approval 
        of the Hennepin county board, in their its sole discretion.  
        Upon the death of the surviving spouse, any shares remaining in 
        the participant's share account record shall must be redeemed by 
        the county of Hennepin and the cash realized therefrom from the 
        redemption distributed to the estate of the surviving spouse. 
           (3) In the event of the death of a participant leaving no 
        surviving spouse, but leaving a minor surviving child or minor 
        surviving children, the guardianship estate of the minor 
        child is, or the guardianship estates of the minor 
        children shall be are, entitled to receive the cash realized on 
        the redemption of all shares to the credit of the participant's 
        share account record of the deceased participant.  In the event 
        of minor surviving children, the cash realized shall must be 
        paid in equal shares to the guardianship estates of the minor 
        surviving children. 
           (4) In the event of the death of a participant leaving no 
        surviving spouse and no minor surviving children, the estate of 
        the deceased participant shall be is entitled to receive the 
        cash realized on the redemption of all shares to the credit of 
        the participant's share account record of the deceased 
        participant. 
           Sec. 19.  [FIRST CLASS CITY TEACHER PLANS; DETERMINING 
        APPLICABLE LAW.] 
           In accordance with Minnesota Statutes, section 354A.12, 
        subdivision 4, the Minneapolis teachers retirement fund 
        association, the St. Paul teachers retirement fund association, 
        and the Duluth teachers retirement fund association shall amend 
        the articles of incorporation or bylaws of the respective 
        association.  This authorization is to provide that an employee 
        who has service credit in the basic plan of the Minneapolis 
        teachers retirement fund association, or the St. Paul teachers 
        retirement fund association, or an employee with service credit 
        in the Duluth teachers retirement fund association old law plan, 
        who returns to covered service following a termination and who 
        is not receiving a retirement annuity from the respective plan, 
        must have earned at least 85 days of credited service following 
        the return to covered service to be eligible for improved 
        benefits resulting from any law change enacted subsequent to the 
        termination. 
           Sec. 20.  [INSTRUCTION TO REVISOR.] 
           In the next and subsequent issues of Minnesota Statutes, 
        the revisor of statutes shall substitute "association" for 
        "fund" in every instance where reference is to the teachers 
        retirement organization in chapters 354 and 356.  For purposes 
        of this section, "organization" means the entity that 
        administers the plans under chapter 354.  The revisor shall 
        substitute "fund" for "association" in every instance where 
        reference is to the fund which receives contributions and is 
        used to accumulate and invest assets to meet liabilities created 
        by benefits offered under terms of the plan. 
           Sec. 21.  [EFFECTIVE DATE.] 
           (a) Sections 1 through 9, 11, 12, 14, 15, 20, and 21, are 
        effective on the day following final enactment. 
           (b) Sections 10, 13, and 19, are effective on July 1, 1995. 
           (c) Section 16 is effective the day following final 
        enactment and applies to tax-sheltered annuity programs 
        receiving employer matching contributions in operation at any 
        time during the 1995 calendar year. 
                                   ARTICLE 4 
                     IRAP RECODIFICATION AND MODIFICATIONS 
           Section 1.  Minnesota Statutes 1994, section 11A.23, 
        subdivision 4, is amended to read: 
           Subd. 4.  [COVERED RETIREMENT FUNDS AND PLANS.] The 
        provisions of this section shall apply to the following 
        retirement funds and plans:  
           (1) State university and state community college higher 
        education board supplemental retirement plan established 
        pursuant to sections 354B.07 to 354B.09 under chapter 354C; 
           (2) state employees retirement fund established pursuant to 
        chapter 352; 
           (3) correctional employees retirement plan established 
        pursuant to chapter 352; 
           (4) state patrol retirement fund established pursuant to 
        chapter 352B; 
           (5) unclassified employees retirement plan established 
        pursuant to chapter 352D; 
           (6) public employees retirement fund established pursuant 
        to chapter 353; 
           (7) public employees police and fire fund established 
        pursuant to chapter 353; 
           (8) teachers' retirement fund established pursuant to 
        chapter 354; 
           (9) judges' retirement fund established pursuant to chapter 
        490; and 
           (10) any other funds required by law to be invested by the 
        board.  
           Sec. 2.  Minnesota Statutes 1994, section 352D.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COVERAGE.] (a) Employees enumerated in 
        paragraph (b), if they are in the unclassified service of the 
        state or metropolitan council and are eligible for coverage 
        under the general state employees retirement plan under chapter 
        352, are participants in the unclassified program under this 
        chapter unless the employee gives notice to the executive 
        director of the Minnesota state retirement system within one 
        year following the commencement of employment in the 
        unclassified service that the employee desires coverage under 
        the general state employees retirement plan.  For the purposes 
        of this chapter, an employee who does not file notice with the 
        executive director is deemed to have exercised the option to 
        participate in the unclassified plan. 
           (b) Enumerated employees are: 
           (1) an employee in the office of the governor, lieutenant 
        governor, secretary of state, state auditor, state treasurer, 
        attorney general, or an employee of the state board of 
        investment; 
           (2) the head of a department, division, or agency created 
        by statute in the unclassified service, an acting department 
        head subsequently appointed to the position, or an employee 
        enumerated in section 15A.081, subdivision 1 or 15A.083, 
        subdivision 4; 
           (3) a permanent, full-time unclassified employee of the 
        legislature or a commission or agency of the legislature or a 
        temporary legislative employee having shares in the supplemental 
        retirement fund as a result of former employment covered by this 
        chapter, whether or not eligible for coverage under the 
        Minnesota state retirement system; 
           (4) a person other than an employee of the state board of 
        technical colleges who is employed in a position established 
        under section 43A.08, subdivision 1, clause (3), or subdivision 
        1a, or in a position authorized under a statute creating or 
        establishing a department or agency of the state, which is at 
        the deputy or assistant head of department or agency or director 
        level; 
           (5) the regional administrator, or executive director of 
        the metropolitan council, general counsel, division directors, 
        operations managers, and other positions as designated by the 
        council, all of which may not exceed 27 positions at the 
        council; and the chair, provided that upon initial designation 
        of all positions provided for in this clause, no further 
        designations or redesignations may be made without approval of 
        the board of directors of the Minnesota state retirement system; 
           (6) the executive director, associate executive director, 
        and not to exceed nine positions of the higher education 
        coordinating board in the unclassified service, as designated by 
        the higher education coordinating board before January 1, 1992, 
        or subsequently redesignated with the approval of the board of 
        directors of the Minnesota state retirement system, unless the 
        person has elected coverage by the individual retirement account 
        plan under chapter 354B; 
           (7) the clerk of the appellate courts appointed under 
        article VI, section 2, of the Constitution of the state of 
        Minnesota; 
           (8) the chief executive officers of correctional facilities 
        operated by the department of corrections and of hospitals and 
        nursing homes operated by the department of human services; 
           (9) an employee whose principal employment is at the state 
        ceremonial house; 
           (10) an employee of the Minnesota educational computing 
        corporation; 
           (11) an employee of the world trade center board; and 
           (12) an employee of the state lottery board who is covered 
        by the managerial plan established under section 43A.18, 
        subdivision 3; 
           (13) an employee of the state board of technical colleges 
        employed in a position established under section 43A.08, 
        subdivision 1, clause (3), or 1a, unless the person has elected 
        coverage by the individual retirement account plan under chapter 
        354B; and 
           (14) an employee of the higher education board in a 
        position established under section 136E.04, subdivision 2, 
        unless the person has elected coverage by the individual 
        retirement account plan under chapter 354B. 
           Sec. 3.  Minnesota Statutes 1994, section 354.05, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [EXCEPTIONS.] (a) Notwithstanding subdivision 2, 
        a person specified in paragraph (b) is not a member of the fund 
        except for purposes of social security coverage unless (1) the 
        person is covered by section 354B.02, subdivision 2, and remains 
        a member of the fund for all purposes or, (2) the person is 
        covered by section 354B.02, subdivision 1 or 5, or 
        354B.035 354B.21, and elects coverage by the teachers retirement 
        association. 
           (b) A teacher is excluded from fund membership other than 
        social security coverage under paragraph (a) if first employed 
        as: 
           (1) a teacher in the state university system after June 30, 
        1989; 
           (2) a teacher in the state community college system after 
        June 30, 1989; or 
           (3) a teacher in a technical college authorized under 
        chapter 136C or 136D after June 30, 1995 the person is covered 
        by the individual retirement account plan established under 
        chapter 354B. 
           Sec. 4.  Minnesota Statutes 1994, section 354A.011, is 
        amended by adding a subdivision to read: 
           Subd. 14a.  [DISTRICT.] "District" or "school district" 
        means the employing school district or the higher education 
        board. 
           Sec. 5.  Minnesota Statutes 1994, section 354A.011, 
        subdivision 27, is amended to read: 
           Subd. 27.  [TEACHER.] "Teacher" means any person who 
        renders service in a public school district located in the 
        corporate limits of one of the cities of the first class which 
        was so classified on January 1, 1979, as any of the following: 
           (a) a full-time employee in a position for which a valid 
        license from the state department of education is required; 
           (b) an employee of the teachers retirement fund association 
        located in the city of the first class unless the employee has 
        exercised the option pursuant to Laws 1955, chapter 10, section 
        1, to retain membership in the Minneapolis employees retirement 
        fund established pursuant to chapter 422A; 
           (c) a part-time employee in a position for which a valid 
        license from the state department of education is required; or 
           (d) a part-time employee in a position for which a valid 
        license from the state department of education is required who 
        also renders other nonteaching services for the school district 
        unless the board of trustees of the teachers retirement fund 
        association determines that the combined employment is on the 
        whole so substantially dissimilar to teaching service that the 
        service shall not be covered by the association. 
           The term shall not mean any person who renders service in 
        the school district as any of the following: 
           (1) an independent contractor or the employee of an 
        independent contractor; 
           (2) an employee who is a full-time teacher covered by 
        another teachers retirement fund association established 
        pursuant to this chapter or chapter 354; 
           (3) an employee exempt from licensure pursuant to section 
        125.031; or 
           (4) an employee who is a teacher in a technical college 
        located in a city of the first class unless the person elects 
        coverage by the applicable first class city teacher retirement 
        fund association under section 354B.02 354B.21, subdivision 1, 
        or 354B.035. 2; or 
           (5) an employee who is a part-time teacher in a technical 
        college in a city of the first class and who has elected 
        coverage by the applicable first class city teacher retirement 
        fund association under section 354B.21, subdivision 2, but (1) 
        the teaching service is incidental to the regular nonteaching 
        occupation of the person; (2) the applicable technical college 
        stipulates annually in advance that the part-time teaching 
        service will not exceed 300 hours in a fiscal year; and (3) the 
        part-time teaching actually does not exceed 300 hours in the 
        fiscal year to which the certification applies.  
           Sec. 6.  Minnesota Statutes 1994, section 355.61, is 
        amended to read: 
           355.61 [SOCIAL SECURITY COVERAGE FOR CERTAIN STATE 
        UNIVERSITY OR COMMUNITY COLLEGE FACULTY MEMBERS EMPLOYED BY THE 
        HIGHER EDUCATION BOARD.] 
           Plan participants under section 354B.02, subdivision 1, and 
        persons electing participation under section 354B.02, 
        subdivision 2 or 3, 354B.21 remain members of the teachers 
        retirement association for purposes of social security coverage 
        only, and remain covered by the applicable agreement entered 
        into under section 355.02, but are not members of the teachers 
        retirement association for any other purpose while employed in 
        covered employment. 
           Sec. 7.  Minnesota Statutes 1994, section 356.24, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RESTRICTION; EXCEPTIONS.] (a) It is 
        unlawful for a school district or other governmental subdivision 
        or state agency to levy taxes for, or contribute public funds to 
        a supplemental pension or deferred compensation plan that is 
        established, maintained, and operated in addition to a primary 
        pension program for the benefit of the governmental subdivision 
        employees other than: 
           (1) to a supplemental pension plan that was established, 
        maintained, and operated before May 6, 1971; 
           (2) to a plan that provides solely for group health, 
        hospital, disability, or death benefits, to the individual 
        retirement account plan established by sections 354B.01 to 
        354B.05 chapter 354B; 
           (3) to a plan that provides solely for severance pay under 
        section 465.72 to a retiring or terminating employee; 
           (4) for employees other than personnel employed by the 
        state university board or the community college board and 
        covered by section 354B.07, subdivision 1 the higher education 
        board supplemental retirement plan under chapter 354C, to: 
           (i) the state of Minnesota deferred compensation plan under 
        section 352.96; or 
           (ii) payment of the applicable portion of the premium on a 
        tax sheltered annuity contract qualified under section 403(b) of 
        the federal Internal Revenue Code, purchased from a qualified 
        insurance company; if provided for in a personnel policy or in 
        the collective bargaining agreement of the public employer with 
        the exclusive representative of public employees in an 
        appropriate unit, in an amount matching employee contributions 
        on a dollar for dollar basis, but not to exceed an employer 
        contribution of $2,000 a year per employee; or 
           (5) for personnel employed by the state university board or 
        the community college board and not covered by sections 352D.02, 
        subdivision 1a, and 354B.07, subdivision 1 clause (4), to the 
        supplemental retirement plan under sections 354B.07 to 354B.09 
        chapter 354C, if provided for in a personnel policy or in the 
        collective bargaining agreement of the public employer with the 
        exclusive representative of the covered employees in an 
        appropriate unit, in an amount matching employee contributions 
        on a dollar for dollar basis, but not to exceed an employer 
        contribution of $2,000 a year for each employee.  
           (b) A qualified insurance company is a company that: 
           (1) meets the definition in section 60A.02, subdivision 4; 
           (2) is licensed to engage in life insurance or annuity 
        business in the state; 
           (3) is determined by the commissioner of commerce to have a 
        rating within the top two rating categories by a recognized 
        national rating agency or organization that regularly rates 
        insurance companies; and 
           (4) is determined by the state board of investment to be 
        among the ten applicant insurance companies with competitive 
        options and investment returns on annuity products.  The state 
        board of investment determination must be made on or before 
        January 1, 1993, and must be reviewed periodically.  The state 
        board of investment may retain actuarial services to assist it 
        in this determination and in its periodic review.  The state 
        board of investment may annually establish a budget for its 
        costs in any determination and periodic review processes.  The 
        state board of investment may charge a proportional share of all 
        costs related to the periodic review to those companies 
        currently under contract and may charge a proportional share of 
        all costs related to soliciting and evaluating bids in a 
        determination process to each company selected by the state 
        board of investment.  All contracts must be approved before 
        execution by the state board of investment.  The state board of 
        investment shall establish policies and procedures under section 
        11A.04, clause (2), to carry out this paragraph. 
           (c) A personnel policy for unrepresented employees or a 
        collective bargaining agreement may establish limits on the 
        number of vendors under paragraph (b), clause (4), that it will 
        utilize and conditions under which the vendors may contact 
        employees both during working hours and after working hours. 
           Sec. 8.  [354B.20] [DEFINITIONS.] 
           Subdivision 1.  [IN GENERAL.] Unless the content or subject 
        matter indicates otherwise, as used in this chapter the terms in 
        this section have the meanings given them. 
           Subd. 2.  [BOARD.] "Board" means the higher education board.
           Subd. 3.  [CHANCELLOR.] "Chancellor" means the chancellor 
        of the board. 
           Subd. 4.  [COVERED EMPLOYMENT.] (a) "Covered employment" 
        means employment by a person eligible for coverage by this 
        retirement program under section 354B.21 in a faculty position 
        or in an eligible unclassified administrative position. 
           (b) "Covered employment" does not mean employment specified 
        in paragraph (a) by a faculty member employed in a state 
        university or a community college if the person's initial 
        appointment is specified as constituting less than 25 percent of 
        a full academic year, exclusive of summer session, for the 
        applicable institution. 
           Subd. 5.  [COVERED SALARY.] (a) "Covered salary" means the 
        periodic compensation paid to the participant before deductions 
        for deferred compensation, supplemental retirement coverage, or 
        other voluntary salary reduction program. 
           (b) "Covered salary" does not mean lump sum sick leave 
        payments, severance payments, payments in lieu of employer-paid 
        group insurance coverage, payments based on differences between 
        single employer-paid group insurance coverage and insurance 
        coverage including dependents, or workers' compensation payment. 
           Subd. 6.  [ELIGIBLE UNCLASSIFIED ADMINISTRATIVE POSITION.] 
        "Eligible unclassified administrative position" means the 
        following: 
           (1) the chancellor of the board; 
           (2) a president of a state college or university; or 
           (3) an excluded administrator employed in a state 
        university or college, by the board, or by the higher education 
        coordinating board. 
           Subd. 7.  [EMPLOYING UNIT.] "Employing unit," if the agency 
        employs any persons covered by the individual retirement account 
        plan under section 354B.21, means: 
           (1) the board; 
           (2) the higher education coordinating board; and 
           (3) the higher education facilities authority. 
           Subd. 8.  [FACULTY.] "Faculty" means an employment position 
        that meets the definition of either section 354.05, subdivision 
        2, or 354A.011, subdivision 27. 
           Subd. 9.  [FIRST CLASS CITY TEACHER RETIREMENT FUND 
        ASSOCIATION.] "First class city teacher retirement fund 
        association" means a retirement plan, fund, and plan 
        administration established under chapter 354A. 
           Subd. 10.  [GENERAL STATE EMPLOYEES RETIREMENT 
        PLAN.] "General state employees retirement plan" means the 
        retirement plan administered by the Minnesota state retirement 
        system and governed by sections 352.01 to 352.73. 
           Subd. 11.  [HIGHER EDUCATION BOARD.] "Higher education 
        board" means the governing board for the state universities, the 
        community colleges, and the technical colleges established by 
        section 136E.01. 
           Subd. 12.  [PARTICIPANT.] "Participant" means a person who 
        is employed in covered employment by the board and who elects 
        coverage by the plan under section 354B.21. 
           Subd. 13.  [PLAN.] "Plan" means the individual retirement 
        account plan established by this chapter. 
           Subd. 14.  [PLAN ADMINISTRATOR.] "Plan administrator" means 
        the board employee or an independent contract agent designated 
        by the board to perform the primary administrative functions 
        relating to the plan. 
           Subd. 15.  [SABBATICAL LEAVE.] "Sabbatical leave" means a 
        sabbatical leave as specified in the applicable collective 
        bargaining agreement or personnel policy of the board for its 
        employees. 
           Subd. 16.  [STATE UNCLASSIFIED EMPLOYEES RETIREMENT 
        PROGRAM.] "State unclassified employees retirement program" 
        means the retirement program established by chapter 352D. 
           Subd. 17.  [SUPPLEMENTAL PLAN.] "Supplemental plan" means 
        the retirement program established by chapter 354C. 
           Subd. 18.  [TEACHERS RETIREMENT PLAN.] "Teachers retirement 
        plan" means the retirement plan established by chapter 354. 
           Sec. 9.  [354B.21] [COVERAGE.] 
           Subdivision 1.  [ELIGIBILITY.] The following persons are 
        eligible to have coverage by the individual retirement account 
        plan and to be participants in the plan: 
           (1) employees of the board who are employed as faculty in 
        an employment classification included in the state university 
        instructional unit, the community college instructional unit, or 
        the technical college instructional unit under section 179A.10, 
        subdivision 2; 
           (2) the chancellor and employees of the board in eligible 
        unclassified administrative positions; 
           (3) the employees in eligible unclassified administrative 
        positions in the state universities; 
           (4) the employees in eligible unclassified administrative 
        positions in the technical colleges; and 
           (5) the employees in eligible unclassified administrative 
        positions of the higher education coordinating board or of the 
        community colleges. 
           Subd. 2.  [COVERAGE; ELECTION.] (a) An eligible person is 
        entitled to elect coverage by the plan.  If the eligible person 
        does not make a timely election of coverage by the plan, the 
        person has the coverage specified in subdivision 3. 
           (b) For eligible persons who were employed by the former 
        state university system or the former community college system 
        before May 1, 1995, the person has the retirement coverage that 
        the person had for employment immediately before May 1, 1995. 
           (c) For all other eligible persons, the election of 
        coverage must be made within 90 days of the date of enactment of 
        this act or 90 days of receiving notice from the employer of the 
        options available under this section, whichever occurs later. 
           Subd 3.  [DEFAULT COVERAGE.] If an eligible person fails to 
        elect coverage by the plan under subdivision 2 or if the person 
        fails to make a timely election, the following retirement 
        coverage applies: 
           (1) for employees of the board who are employed in faculty 
        positions in the state universities or in the community 
        colleges, the retirement coverage is by the plan established by 
        this chapter; 
           (2) for employees of the board who are employed in faculty 
        positions in the technical colleges, the retirement coverage is 
        by the teachers retirement association established under chapter 
        354, unless the employee was a member of a first class city 
        teacher retirement fund established under chapter 354A on June 
        30, 1995, and then the retirement coverage is by the Duluth 
        teachers retirement fund association if the person was a member 
        of that plan on June 30, 1995, or the Minneapolis teachers 
        retirement fund association if the person was a member of that 
        plan on June 30, 1995, or the St. Paul teachers retirement fund 
        association if the person was a member of that plan on June 30, 
        1995; and 
           (3) for employees of the board who are employed in eligible 
        unclassified administrative positions, the retirement coverage 
        is by the plan established by this chapter. 
           Subd. 3a.  [CONTINUATION OF PLAN COVERAGE IN CERTAIN 
        INSTANCES.] For a person with retirement coverage by a first 
        class city teacher retirement fund association instead of the 
        individual retirement account plan under subdivision 3, clause 
        (2), coverage by the applicable retirement fund association 
        continues for the duration of the person's employment by the 
        higher education board unless, within 90 days of a change in 
        employment within the Minnesota state colleges and universities 
        system, the person elects the individual retirement account plan 
        for all future employment by the higher education board. 
           Subd. 3b.  [COVERAGE OF CERTAIN FORMER TECHNICAL COLLEGE 
        FACULTY MEMBERS.] A person who was employed as a teacher by a 
        technical college before July 1, 1995, and who subsequently is 
        reclassified into a different employment position while 
        continuing to perform the same or essentially the same 
        employment duties and consequently shifts from the technical 
        college instructional collective bargaining unit to another 
        state collective bargaining unit retains coverage by the 
        teachers retirement association or the applicable first class 
        city teachers retirement fund association, whichever applies. 
           Subd. 3c.  [ELECTION OF TRA COVERAGE IN CERTAIN 
        INSTANCES.] (a) A person who was employed as a teacher by a 
        technical college before July 1, 1995, and who has retirement 
        coverage for that technical college teacher employment by a 
        first class city teacher retirement fund association under 
        chapter 354A may elect to have future higher education system 
        teacher employment retirement coverage by the teacher retirement 
        association governed by chapter 354. 
           (b) The election to transfer prospective retirement 
        coverage under paragraph (a) must be made by the technical 
        college teacher by October 1, 1995, or within 90 days of 
        initially being employed by the higher education system, 
        whichever is later.  The election must be made in writing on a 
        form prescribed by the executive director of the teachers 
        retirement association.  The election, once filed with the 
        executive director of the teachers retirement association, is 
        irrevocable. 
           (c) An election to transfer prospective retirement coverage 
        under paragraph (a) does not affect prior allowable service 
        credit under section 354A.011, subdivision 4.  The transfer of 
        prospective retirement coverage does not make the person 
        eligible for a refund of member contributions during the course 
        of the person's employment by the higher education system. 
           Subd. 4.  [COVERAGE IN THE EVENT OF ACTING, INTERIM, OR 
        TEMPORARY APPOINTMENTS.] (a) A person previously employed by the 
        board and subsequently appointed by the board to an acting, 
        interim, or temporary faculty or eligible unclassified 
        administrative position by the board retains the retirement 
        coverage that the person had in the prior board position.  If 
        the participant's status becomes permanent, the participant has 
        the option to make an election of retirement coverage 
        appropriate to the retirement plan in which the employment 
        position should have retirement coverage consistent with 
        subdivision 2. 
           (b) A person who is appointed to an acting, interim, or 
        temporary faculty position by the board and who was not employed 
        in a faculty position by the board immediately before that 
        appointment must elect coverage as provided in subdivision 2. 
           Subd. 5.  [PAYMENT FOR CERTAIN PRIOR UNCOVERED SERVICE.] (a)
        A person employed in a faculty position by the board who was 
        initially excluded from participation in the individual 
        retirement account plan coverage, who was not covered by any 
        other Minnesota public pension plan for that service, and who is 
        subsequently eligible to participate in the individual 
        retirement account plan may make member contributions for that 
        period of prior uncovered teaching employment or eligible 
        unclassified administrative employment with the board. 
           (b) The member contributions for prior uncovered board 
        service are the amount that the person would have paid if the 
        prior service had been covered employment.  The payment must be 
        made to the individual retirement account plan administrator and 
        may be made only by payroll deduction.  The payment must be made 
        by the later of: 
           (1) 45 days of the start of covered employment; or 
           (2) the end of the fiscal year in which covered employment 
        began. 
           (c) The board must contribute an amount to match any 
        contribution made by a plan participant under this subdivision. 
           (d) Payments of contributions for prior uncovered board 
        service under this subdivision must be invested in the same 
        manner as the regular contributions made by or on behalf of the 
        plan participant. 
           Subd. 6.  [CONTINUATION OF COVERAGE.] Once a person is 
        employed in a position that qualifies for participation in the 
        individual retirement account plan and elects to participate in 
        the plan, all subsequent service by the person as a faculty 
        member employed by the board or other employing unit is covered 
        by the individual retirement account plan. 
           Sec. 10.  [354B.22] [IRAP COVERAGE IN ADDITION TO SOCIAL 
        SECURITY COVERAGE.] 
           Subdivision 1.  [SOCIAL SECURITY COVERAGE.] (a) Any 
        employee of the board or other employing unit who elects 
        coverage by this chapter is a member of the teachers retirement 
        association solely for purposes of coverage by the federal old 
        age, survivors, disability and health insurance program, and are 
        covered by the agreement made under section 355.02. 
           (b) A person with federal social security coverage through 
        teachers retirement association membership under paragraph (a) 
        is not a member of the teachers retirement association for any 
        other purpose while employed as a teacher by the board, and 
        membership in the teachers retirement association for this 
        limited purpose conveys no rights or benefit entitlement under 
        chapter 354. 
           Subd. 2.  [PUBLIC PENSION COVERAGE AS CONDITION OF 
        EMPLOYMENT.] Coverage by a public pension plan under section 
        354B.21 is a condition of initial employment or continued 
        employment as a faculty member or eligible unclassified 
        administrative position by the board or other employing unit. 
           Sec. 11.  [354B.23] [CONTRIBUTIONS.] 
           Subdivision 1.  [MEMBER CONTRIBUTION RATE.] (a) Except as 
        provided in paragraph (b), the member contribution rate for 
        participants in the individual retirement account plan is 4.5 
        percent of salary. 
           (b) For participants in the individual retirement account 
        plan who were otherwise eligible to elect retirement coverage in 
        the state unclassified employees retirement program, the member 
        contribution rate is the rate specified in section 352D.04, 
        subdivision 2, paragraph (a). 
           Subd. 2.  [MEMBER CONTRIBUTION METHOD.] Member 
        contributions must be made by payroll deduction during each pay 
        period. 
           Subd. 3.  [EMPLOYER CONTRIBUTION RATE.] The employer 
        contribution rate on behalf of participants in the individual 
        retirement account plan is six percent of salary. 
           Subd. 4.  [EMPLOYER CONTRIBUTION METHOD.] The employer 
        contribution must be made by the employing unit of a plan 
        participant during each pay period.  The employer contribution 
        must be made from the available revenue sources of the employing 
        unit. 
           Subd. 5.  [OMITTED MEMBER DEDUCTIONS.] (a) If the employing 
        unit that employs a plan participant fails to deduct the member 
        contribution from the participant's salary and a period of less 
        than 60 days from the date on which the deduction should have 
        been made has elapsed, the employing unit must obtain the 
        omitted member deduction by an additional payroll deduction 
        during the pay period next following the discovery of the 
        omission. 
           (b) If the employing unit of a plan participant fails to 
        deduct the member contribution from the participant's salary and 
        that omission continues for at least 60 days from the date on 
        which the deduction should have been made, the employing unit 
        must pay the amount representing the omitted member 
        contribution, and the full required employer contribution, plus 
        compound interest at an annual rate of 8.5 percent.  The 
        contributions and any interest must be made within one year of 
        the date on which the omission was discovered. 
           Subd. 6.  [TRANSFER OF CERTAIN TRA MEMBER CONTRIBUTION 
        AMOUNTS TO IRAP.] (a) Notwithstanding any provisions of chapter 
        354 to the contrary, a former member of the teachers retirement 
        association who has less than three years of allowable service 
        credit under section 354.05, subdivision 13, and who is a member 
        of the individual retirement account plan may elect to transfer 
        to the plan an amount equal to the refund that the person could 
        have received under section 354.49, subdivision 2, if the person 
        had been eligible to receive a refund. 
           (b) The transfer must be made from the teachers retirement 
        association directly to the individual retirement account plan 
        and credited to the appropriate account. 
           (c) No amount under this subdivision may be paid directly 
        to the former teachers retirement association member. 
           (d) The election of this transfer must be made on a form 
        prescribed by the executive director of the teachers retirement 
        association, after consultation with the plan administrator. 
           Sec. 12.  [354B.24] [SABBATICAL LEAVE.] 
           Subdivision 1.  [CONTINUATION OF COVERAGE.] A person who is 
        a participant in the individual retirement plan, and who goes on 
        an approved sabbatical leave, must remain a participant in the 
        plan for any period during which the person receives a salary 
        from the board or during which the person makes an optional 
        contribution provided for in subdivision 3. 
           Subd. 2.  [MANDATORY CONTRIBUTIONS.] (a) From the salary 
        paid to the person during the course of an approved sabbatical 
        leave, the employing unit must deduct a member contribution as 
        required under section 354B.23, subdivision 1. 
           (b) The employing unit must make the employer contribution 
        on behalf of the plan participant as provided in section 
        354B.23, subdivision 3. 
           Subd. 3.  [OPTIONAL ADDITIONAL CONTRIBUTIONS.] (a) A plan 
        participant on an approved sabbatical leave may make an optional 
        additional member contribution.  The optional additional member 
        may not exceed the applicable member contribution rate specified 
        in section 354B.23, subdivision 1, applied to the difference 
        between the amount of salary actually received during the 
        sabbatical leave and the amount of salary actually received for 
        a comparable period of an identical length to the sabbatical 
        leave that occurred during the fiscal year immediately preceding 
        the sabbatical leave. 
           (b) Any optional additional member contribution must be 
        made before the last day of the fiscal year next following the 
        fiscal year in which the sabbatical leave terminates.  The 
        optional additional member contribution may not include interest.
           (c) When an optional additional member contribution is 
        made, the employing unit must make the employer contribution at 
        the rate set forth in section 354B.23, subdivision 3, on the 
        salary that was the basis for the optional additional member 
        contribution under paragraph (a). 
           (d) An employer contribution required under this section 
        must be made no later than 60 days after the date on which the 
        optional additional member contribution was made. 
           Subd. 4.  [REINSTATEMENT RIGHTS.] Notwithstanding the 
        provisions of any sabbatical leave agreements, regular and 
        optional additional member contributions and employer 
        contributions under this section are permissible only if the 
        plan participant retains the right to full reinstatement to an 
        employment position with the applicable employing unit both 
        during and at the conclusion of the sabbatical leave. 
           Sec. 13.  [354B.25] [INDIVIDUAL RETIREMENT ACCOUNT PLAN 
        ADMINISTRATION.] 
           Subdivision 1.  [GENERAL GOVERNANCE.] The individual 
        retirement account plan is the administrative responsibility of 
        the higher education board.  The higher education board may 
        administer the plan directly or may contract out for 
        administrative services with a qualified third-party plan 
        administrative entity. 
           Subd. 2.  [ANNUITY CONTRACTS AND CUSTODIAL ACCOUNTS.] (a) 
        The plan administrator shall arrange for the purchase of fixed 
        annuity contracts, variable annuity contracts, a combination of 
        fixed and variable annuity contracts, or custodial accounts from 
        financial institutions which have been selected by the state 
        board of investment under subdivision 3, as the investment 
        vehicle for the retirement coverage of plan participants and to 
        provide retirement benefits to plan participants.  Custodial 
        accounts from financial institutions shall include open-end 
        investment companies registered under the federal Investment 
        Company Act of 1940, as amended. 
           (b) The annuity contracts or accounts must be purchased 
        with contributions under section 354B.23 or with money or assets 
        otherwise provided by law by authority of the board and deemed 
        acceptable by the applicable financial institution. 
           (c) In addition to contracts and accounts from financial 
        institutions, the Minnesota supplemental investment fund 
        established under section 11A.17 and administered by the state 
        board of investment is one of the investment options for the 
        individual retirement account plan. 
           Subd. 3.  [SELECTION OF FINANCIAL INSTITUTIONS.] (a) The 
        financial institutions provided for under subdivision 2 must be 
        selected by the state board of investment.  Financial 
        institutions include open-end investment companies registered 
        under the federal Investment Company Act of 1940, as amended. 
           (b) The state board of investment may select up to five 
        financial institutions to provide annuity contracts, custodial 
        accounts, or a combination, as investment options for the 
        individual retirement account plan in addition to the Minnesota 
        supplemental investment fund.  In making its selection, at a 
        minimum, the state board of investment shall consider at least 
        the following: 
           (1) the experience and ability of the financial institution 
        to provide retirement and death benefits that are suited to meet 
        the needs of plan participants; 
           (2) the relationship of those retirement and death benefits 
        provided by the financial institution to their cost; and 
           (3) the financial strength and stability of the financial 
        institution. 
           (c) After selecting a financial institution, the state 
        board of investment must periodically review each financial 
        institution selected under paragraph (b).  The periodic review 
        must occur at least every three years.  In making its review, 
        the state board of investment may retain appropriate consulting 
        services to assist it in its periodic review, establish a budget 
        for the cost of the periodic review process, and charge a 
        proportional share of these costs to the reviewed financial 
        institution. 
           (d) Contracts with financial institutions under this 
        section must be executed by the board and must be approved by 
        the state board of investment before execution. 
           (e) The state board of investment shall also establish 
        policies and procedures under section 11A.04, clause (2), to 
        carry out the provisions of this subdivision. 
           Subd. 4.  [BENEFIT OWNERSHIP.] The retirement benefits 
        provided by the annuity contracts and custodial accounts of the 
        individual retirement account plan are held for the benefit of 
        plan participants and must be paid according to this chapter and 
        of the plan document. 
           Subd. 5.  [INDIVIDUAL RETIREMENT ACCOUNT PLAN 
        ADMINISTRATIVE EXPENSES.] (a) The reasonable and necessary 
        administrative expenses of the individual retirement account 
        plan must be paid by plan participants in the following manner: 
           (1) from plan participants with amounts invested in the 
        Minnesota supplemental investment fund, the plan administrator 
        may charge an administrative expense assessment as provided in 
        section 11A.17, subdivisions 10a and 14; and 
           (2) from plan participants with amounts through annuity 
        contracts and custodial accounts purchased under subdivision 2, 
        paragraph (a), the plan administrator may charge an 
        administrative expense assessment of a designated amount, not to 
        exceed two percent of member and employer contributions, as 
        those contributions are made. 
           (b) Any administrative expense charge that is not actually 
        needed for the administrative expenses of the individual 
        retirement account plan must be refunded to member accounts. 
           Sec. 14.  [354B.26] [DEFERRED ANNUITY ENTITLEMENT FOR 
        CERTAIN FORMER TRA MEMBERS.] 
           Notwithstanding any provision of chapter 354 to the 
        contrary, a person covered by this chapter who had less than 
        three years of prior allowable service credit in the teachers 
        retirement association is entitled to a deferred annuity and 
        augmentation under section 354.55, subdivision 11. 
           Sec. 15.  [354B.30] [PROHIBITION ON LOANS OR PRETERMINATION 
        DISTRIBUTIONS.] 
           (a) No participant may obtain a loan from the plan or 
        obtain any distribution from the plan at a time before the 
        participant terminates the employment that gave rise to plan 
        coverage. 
           (b) No amounts to the credit of the plan are assignable 
        either in law or in equity, are subject to state estate tax, or 
        are subject to execution, levy, attachment, garnishment, or 
        other legal process, except as provided in section 518.58, 
        518.581, or 518.611. 
           Sec. 16.  [354C.10] [ESTABLISHMENT.] 
           A supplemental retirement plan is established for certain 
        employees of the higher education board.  The supplemental 
        retirement plan is the continuation of the plan established by 
        Laws 1967, chapter 808, sections 1 to 6, as amended. 
           Sec. 17.  [354C.11] [COVERAGE.] 
           Personnel employed by the higher education board who are in 
        the unclassified service of the state, and who have completed at 
        least two years of employment by the board or a predecessor 
        board with a full-time contract are participants in the 
        supplemental retirement plan, effective on the next following 
        July 1, if the person is employed in an eligible unclassified 
        administrative position as defined in section 354B.20, 
        subdivision 6, or is employed in an employment classification 
        included in one of the following collective bargaining units 
        under section 179A.10, subdivision 2: 
           (1) the state university instructional unit; 
           (2) the community college instructional unit; 
           (3) the technical college instructional unit; and 
           (4) the state university administrative unit. 
           Sec. 18.  [354C.12] [SALARY DEDUCTIONS AND MATCHING 
        EMPLOYER CONTRIBUTIONS.] 
           Subdivision 1.  [BASIC CONTRIBUTIONS AND DEDUCTIONS.] (a) 
        The employer of personnel covered by the supplemental retirement 
        plan as provided in section 354C.11 shall deduct a sum equal to 
        five percent of the annual salary of the person between $6,000 
        and $15,000. 
           (b) The basic contribution deduction must be made in the 
        same manner as other retirement deductions are made from the 
        salary of the person under section 352.04, subdivision 4; 
        352D.04, subdivision 2; 354.42, subdivision 2; or 354A.12, 
        whichever applies. 
           (c) The employer shall also make a contribution to the 
        supplemental retirement plan on behalf of covered personnel 
        equal to the salary deduction made under paragraph (a). 
           Subd. 2.  [OMITTED DEDUCTIONS.] If the employer of 
        personnel covered by the supplemental retirement plan as 
        provided in section 354C.11 fails to deduct the member basic 
        contribution from the covered employee's salary and a period of 
        less than 60 days from the date on which the deduction should 
        have been made has elapsed, the employer must obtain the omitted 
        member deduction by an additional payroll deduction during the 
        pay period next following the discovery of the omission.  If the 
        employer fails to deduct the member basic contribution from the 
        covered employee's salary and that omission continues for at 
        least 60 days from the date on which the member basic 
        contribution deduction should have been made, the employer must 
        pay the amount representing the omitted member basic 
        contribution, and the full required omitted employer basic 
        contribution, plus compound interest at an annual rate of 8.5 
        percent.  The contributions must be made within one year of the 
        date on which the omission was discovered. 
           Subd. 3.  [ADDITIONAL DEDUCTIONS AND CONTRIBUTIONS.] If an 
        agreement is made under section 356.24 for an additional 
        employee deduction and an additional matching employer 
        contribution, an amount equal to the additional employee 
        contribution must be deducted from the employee's salary above 
        $15,000.  The employer must match the additional employee 
        contribution deduction. 
           Subd. 4.  [ADMINISTRATIVE EXPENSES.] The higher education 
        board is authorized to pay the necessary and reasonable 
        administrative expenses of the supplemental retirement plan.  
        The administrative fees or charges must be paid by participants 
        in the following manner: 
           (1) from participants whose contributions are invested with 
        the state board of investment, the plan administrator may 
        recover administrative expenses in the manner provided by 
        section 11A.17, subdivisions 10a and 14; or 
           (2) from participants where contributions are invested 
        through contracts purchased from any other authorized source, 
        the plan administrator may assess an amount of up to two percent 
        of the employee and employer contributions. 
           Any recovered or assessed amounts that are not needed for 
        the necessary and reasonable administrative expenses of the plan 
        must be refunded to member accounts. 
           Sec. 19.  [354C.13] [ADMINISTRATION.] 
           The higher education board shall administer the 
        supplemental retirement plan. 
           Sec. 20.  [354C.14] [INVESTMENT OF DEDUCTIONS AND 
        CONTRIBUTIONS.] 
           (a) The higher education board shall invest the deductions 
        and contributions under section 354C.12, after deduction of 
        administrative expenses under section 354C.12, subdivision 4, in 
        annuity contracts or custodial accounts from financial 
        institutions selected by the state board of investment under 
        section 354B.25, subdivision 3. 
           (b) The retirement contributions and death benefits 
        provided by annuity contracts or custodial accounts purchased by 
        the higher education board are owned by the supplemental 
        retirement plan and must be paid in accordance with those 
        annuity contracts or custodial account agreements. 
           Sec. 21.  [354C.15] [REDEMPTION OF SUPPLEMENTAL INVESTMENT 
        FUND SHARES.] 
           (a) The higher education board shall redeem all shares in 
        the accounts of the Minnesota supplemental investment fund held 
        on behalf of personnel covered by the supplemental retirement 
        plan upon the election by the person of an investment option 
        other than the supplemental investment fund, except as provided 
        in paragraph (b). 
           (b) The redemption of shares in the fixed interest account 
        attributable to a guaranteed investment contract as of July 1, 
        1994, may not occur until the expiration date of the applicable 
        guaranteed investment contract. 
           (c) The higher education board shall transfer the cash 
        realized from a redemption of Minnesota supplemental investment 
        fund shares to the financial institution or institutions 
        selected by the state board of investment under section 354B.25, 
        subdivision 3. 
           Sec. 22.  [354C.16] [PAYMENT OF BENEFITS.] 
           (a) The withdrawal of member contributions, employer 
        contributions, and accrued investment income, or a retirement 
        benefit based on those amounts is payable immediately upon the 
        death or termination of employment of the employee. 
           (b) An application by the employee or made on behalf of the 
        employee by an appropriate third party must be filed before any 
        payment of benefits may occur. 
           Sec. 23.  [354C.165] [PROHIBITION ON LOANS OR 
        PRETERMINATION DISTRIBUTIONS.] 
           (a) No participant may obtain a loan from the plan or 
        obtain any distribution from the plan at a time before the 
        participant terminates the employment that gave rise to plan 
        coverage. 
           (b) No amounts to the credit of the plan are assignable 
        either in law or in equity, are subject to state estate tax, or 
        are subject to execution, levy, attachment, garnishment, or 
        other legal process, except as provided in section 518.58, 
        518.581, or 518.611. 
           Sec. 24.  [354C.17] [TAX SHELTER PROVISIONS.] 
           Subdivision 1.  [AGREEMENTS; SALARY ADJUSTMENTS.] For the 
        purpose of permitting participation in a tax shelter for 
        employment income under the applicable pension provisions of the 
        Internal Revenue Code, the higher education board may enter into 
        agreements with its employees to reduce or to adjust downward 
        the salaries for persons covered by the supplemental retirement 
        plan under section 354C.11, and to pay as the employer an amount 
        equivalent to the salary reduction or the salary downward 
        adjustment in the same manner as deductions would have been paid 
        by the employee under section 354C.12, subdivision 1. 
           Subd. 2.  [RULES.] The higher education board may adopt 
        rules and procedures consistent with this chapter to permit, if 
        possible, participation in a tax shelter under the applicable 
        provisions of the Internal Revenue Code. 
           Sec. 25.  [354C.18] [RULES.] 
           (a) The higher education board may adopt rules to 
        administer this chapter. 
           (b) The higher education board may deposit member 
        contributions in a nontreasury account established under chapter 
        136, an account or accounts established under section 11A.17, or 
        other appropriate accounts operated by the state board of 
        investment for investment under procedures established by the 
        state board of investment. 
           Sec. 26.  [NO EFFECT ON CURRENT COVERAGE AND PRIOR SERVICE 
        CREDIT AND CONTRIBUTIONS.] 
           (a) Nothing in sections 7 to 17 is intended to remove any 
        current participant in the individual retirement account plan 
        from future coverage by that plan for continued employment in 
        the same employment position or to add any person to individual 
        retirement account plan coverage or eligibility who was not 
        eligible for that coverage under the laws in effect before July 
        1, 1995. 
           (b) Nothing in sections 7 to 17 may be construed to 
        disqualify any period of employment covered by the individual 
        retirement account plan or to disqualify any contributions to 
        the credit of participants in the individual retirement account 
        plan as reflected in plan records as of June 30, 1995. 
           Sec. 27.  [NO EFFECT ON CURRENT COVERAGE AND PRIOR SERVICE 
        CREDIT AND CONTRIBUTIONS.] 
           (a) Nothing in this recodification article is intended to 
        affect the eligibility for coverage or the coverage by the 
        supplemental retirement plan of any person covered by that plan 
        on June 30, 1995. 
           (b) Nothing in this recodification article may be construed 
        to disqualify any contributions to the credit of any person 
        covered by the supplemental retirement plan as reflected in plan 
        records as of June 30, 1995. 
           Sec. 28.  [EFFECT OF UNCLASSIFIED PROGRAM COVERAGE CHANGE.] 
           The change in eligibility for retirement coverage by the 
        unclassified employees retirement program of the Minnesota state 
        retirement system provided for in sections 2; 9, subdivision 3; 
        and 31, paragraph (d) may not be interpreted to disqualify from 
        future retirement coverage by the unclassified employees 
        retirement program any person who is a member of the 
        unclassified employees retirement program on the date of 
        enactment and may not be interpreted to disqualify from 
        eligibility to elect future retirement coverage by the 
        unclassified employees retirement program any person who was 
        employed in state service any time before the date of enactment 
        and who subsequently is employed in an eligible unclassified 
        administrative position under section 8, subdivision 6. 
           Sec. 29.  [INSTRUCTION TO REVISOR.] 
           In Minnesota Statutes 1995 Supplement and subsequent 
        editions, the revisor of statutes shall correct any references 
        to any provision of Minnesota Statutes, chapter 136E, in this 
        article, replacing the incorrect reference with the appropriate 
        reference. 
           Sec. 30.  [INSTRUCTION TO REVISOR.] 
           In Minnesota Statutes 1995 Supplement and subsequent 
        editions, the revisor of statutes shall renumber as chapter 354D 
        the professional and supervisory employee individual retirement 
        account law that is currently coded as chapter 354C and shall 
        appropriately revise any statutory cross-references in light of 
        that recoding. 
           Sec. 31.  [REPEALER.] 
           (a) Minnesota Statutes 1994, sections 354B.01; 354B.015; 
        354B.02; 354B.035; 354B.04; 354B.045; 354B.05; and 354B.15, are 
        repealed. 
           (b) Laws 1990, chapter 570, article 3, sections 10 and 11, 
        as amended by Laws 1992, chapter 420, section 1, and Laws 1993, 
        chapter 239, article 2, section 7; Laws 1993, chapters 192, 
        section 89, and 239, article 5, section 2; and Laws 1994, 
        chapters 508, article 1, section 14; and 572, sections 11 and 
        12, are repealed. 
           (c) Minnesota Statutes 1994, sections 354B.06; 354B.07; 
        354B.08; 354B.085; and 354B.09, are repealed. 
           (d) Minnesota Statutes 1994, section 352D.02, subdivision 
        1a, is repealed. 
           Sec. 32.  [EFFECTIVE DATE.] 
           Sections 1 to 31 are effective on July 1, 1995. 
           Presented to the governor May 8, 1995 
           Signed by the governor May 10, 1995, 10:17 a.m.