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Minnesota Legislature

Office of the Revisor of Statutes

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

                             CHAPTER 12-S.F.No. 22 
                  An act relating to retirement; modifying various 
                  public pension plan provisions; allowing certain 
                  service credit purchases; regulating leave without pay 
                  for governmental subdivision employees; amending 
                  Minnesota Statutes 2002, sections 11A.17, subdivision 
                  2; 122A.46, subdivision 9; 352.96, subdivision 2; 
                  353.01, subdivisions 2d, 6; 353.028, subdivision 2; 
                  353D.01, subdivision 2; 353D.02, by adding a 
                  subdivision; 353F.02, subdivision 4; 354.094, 
                  subdivision 1; 356.24, subdivision 1; 356.55, 
                  subdivision 7; 356B.05; 383B.49; 383B.493; 423C.03, 
                  subdivision 3; 423C.08; 424A.02, subdivision 3; Laws 
                  1978, chapter 685, section 1, as amended; Laws 1978, 
                  chapter 685, section 2; Laws 1978, chapter 685, 
                  section 3; Laws 1978, chapter 685, section 6; Laws 
                  1999, chapter 222, article 16, section 16, as amended; 
                  Laws 2000, chapter 461, article 4, section 4; Laws 
                  2000, chapter 461, article 12, section 20, as amended; 
                  Laws 2000, chapter 461, article 19, section 6; Laws 
                  2001, First Special Session chapter 10, article 6, 
                  section 21, as amended; repealing Minnesota Statutes 
                  2002, sections 354.541; 354A.109; Laws 1978, chapter 
                  685, section 5.  
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1
                     LOCAL GOVERNMENT SALARY SAVINGS LEAVE
           Section 1.  [APPLICATION.] 
           Unless otherwise specified, this article applies to 
        governmental subdivisions as specified in Minnesota Statutes, 
        section 353.01, subdivision 6, and public employees providing 
        service to the applicable employer and covered by the public 
        employees retirement association general plan or police and fire 
        plan under Minnesota Statutes, chapter 353, or the public 
        employees retirement association local government correctional 
        service retirement plan under Minnesota Statutes, chapter 353E. 
           Sec. 2.  [VOLUNTARY HOUR REDUCTION PLAN.] 
           (a) This section applies to a public employee who: 
           (1) on the effective date of this section is regularly 
        scheduled to work 1,040 or more hours a year in a position 
        covered by a pension plan administered by the public employees 
        retirement association; and 
           (2) enters into an agreement with a governmental 
        subdivision to work a reduced schedule of 1,040 or less hours in 
        the covered position. 
           (b) Notwithstanding any law to the contrary, for service 
        under an agreement entered into under paragraph (a), 
        contributions may be made to the applicable plan of the public 
        employees retirement association as if the employee had not 
        reduced hours.  The employee must pay the employee contributions 
        and the employer must pay employer and additional employer 
        contributions necessary to bring the service credit and salary 
        up to the level prior to the voluntary reduction in hours.  
        Contributions must be made in a time and manner prescribed by 
        the executive director of the public employees retirement 
        association. 
           (c) The number of hours worked, the work schedule, and the 
        duration of the voluntary hour reduction must be mutually agreed 
        to by the employee and the governmental subdivision.  The 
        governmental subdivision may not require a person to waive any 
        rights under a collective bargaining agreement as a condition of 
        participation under this section.  The governmental subdivision 
        has sole discretion to determine if and the extent to which 
        voluntary hour reduction under this section is available to an 
        employee. 
           (d) A person who works under this section and meets the 
        definition of public employee under Minnesota Statutes, section 
        179A.03, subdivision 14, is a member of an appropriate 
        bargaining unit, is covered by an appropriate collective 
        bargaining contract or personnel policy, and is eligible for 
        health care coverage as provided in a collective bargaining 
        contract or personnel policy. 
           (e) An agreement under this section may apply only to work 
        through June 30, 2005. 
           Sec. 3.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
           (a) Governmental subdivisions may allow employees to take 
        unpaid leaves of absence between June 1, 2003, and June 30, 
        2005.  Each governmental subdivision approving a leave may allow 
        the employee to continue accruing vacation and sick leave, be 
        eligible for paid holidays and insurance benefits, accrue 
        seniority, and accrue service credit and credited salary in the 
        public employees retirement association as if the employee had 
        actually been employed during the time of leave.  If the leave 
        of absence is for one full pay period or longer, any holiday pay 
        may be included in the first payroll warrant after return from 
        the leave of absence.  The governmental subdivision shall 
        attempt to grant requests for the unpaid leaves of absence 
        consistent with the need to continue efficient operation of the 
        governmental subdivision.  However, each governmental 
        subdivision shall retain discretion to grant or refuse to grant 
        requests for leaves of absence and to schedule and cancel 
        leaves, subject to the applicable provisions of collective 
        bargaining agreements and personnel policy. 
           (b) To receive eligible service credit, the member shall 
        pay an amount equal to the applicable employee contribution 
        rates.  If an employee pays the employee contribution for the 
        period of the leave under this section, the governmental 
        subdivision must pay the employer contribution and the 
        additional employer contribution.  The governmental subdivision 
        may, at its discretion, pay employee, employer, and additional 
        employer contributions to the public employees retirement 
        association for the period of leave under this section.  
        Contributions must be made in a time and manner prescribed by 
        the executive director of the public employees retirement 
        association. 
           Sec. 4.  [DESIGNATION OF POSITIONS; EMPLOYER DISCRETION.] 
           Before agreeing to an option under this article, a 
        governmental subdivision must designate the job classifications 
        or positions within job classifications that qualify for each 
        option.  The governmental subdivision may modify this 
        designation at any time.  Designation of positions eligible for 
        the options and participation of individual employees under this 
        act are at the sole discretion of the governmental subdivision.  
        Implementation of this act by the employer is not an unfair 
        labor practice under Minnesota Statutes, chapter 179A, or an 
        unfair discriminatory practice under Minnesota Statutes, chapter 
        363. 
           Sec. 5.  [EFFECTIVE DATE.] 
           Sections 1 to 4 are effective on the day following final 
        enactment. 

                                   ARTICLE 2 
                       STATE BOARD OF INVESTMENT CHANGES 
           Section 1.  Minnesota Statutes 2002, section 11A.17, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ASSETS.] The assets of the supplemental 
        investment fund shall consist of the money certified and 
        transmitted to the state board from the participating public 
        retirement plans and funds or from the board of the Minnesota 
        state colleges and universities under section 136F.45.  The 
        assets must be used to purchase investment shares in the 
        investment accounts specified by the plan or fund.  These 
        accounts must be valued at least on a monthly basis, but may be 
        valued more frequently as determined by the state board of 
        investment. 
           Sec. 2.  Minnesota Statutes 2002, section 352.96, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PURCHASE OF SHARES.] The amount of compensation 
        so deferred may be used to purchase: 
           (1) shares in the Minnesota supplemental investment fund 
        established in section 11A.17 that are selected to be offered 
        under the plan by the state board of investment; 
           (2) saving accounts in federally insured financial 
        institutions; 
           (3) life insurance contracts, fixed annuity and variable 
        annuity contracts from companies that are subject to regulation 
        by the commissioner of commerce; 
           (4) investment options from open-end investment companies 
        registered under the federal Investment Company Act of 1940, 
        United States Code, title 15, sections 80a-1 to 80a-64; 
           (5) investment options from a firm that is a registered 
        investment advisor under the Investment Advisers Act of 1940, 
        United States Code, title 15, section 80b-1 to 80b-21; 
           (6) investment options of a bank as defined in United 
        States Code, title 15, section 80b-2, subsection (a), paragraph 
        (2), or a bank holding company as defined in the Bank Holding 
        Company Act of 1956, United States Code, title 12, section 1841, 
        subsection (a), paragraph (1); or 
           (7) a combination of clause (1), (2), (3), (4), (5), or 
        (6), as provided by the plan as specified by the participant. 
           All amounts contributed to the deferred compensation plan 
        and all earnings on those amounts will be held for the exclusive 
        benefit of the plan participants and beneficiaries.  These 
        amounts will be held in trust, in custodial accounts, or in 
        qualifying annuity contracts as required by federal law and in 
        accordance with section 356A.06, subdivision 1.  This 
        subdivision does not authorize an employer contribution, except 
        as authorized in section 356.24, subdivision 1, paragraph (a), 
        clause (5).  The state, political subdivision, or other 
        employing unit is not responsible for any loss that may result 
        from investment of the deferred compensation. 
           Sec. 3.  [EFFECTIVE DATE.] 
           Sections 1 and 2 are effective July 1, 2003. 

                                   ARTICLE 3 
                            TEACHER EXTENDED LEAVES 
           Section 1.  Minnesota Statutes 2002, section 122A.46, 
        subdivision 9, is amended to read: 
           Subd. 9.  [BENEFITS.] A teacher on an extended leave of 
        absence shall receive all of the health, accident, medical, 
        surgical and hospitalization insurance or benefits, for both the 
        teacher and the teacher's dependents, for which the teacher 
        would otherwise be eligible if not on an extended leave.  A 
        teacher shall receive the coverage if such coverage is available 
        from the school district's insurer, if the teacher requests the 
        coverage, and if the teacher either (a) reimburses the district 
        for the full amount of the premium necessary to maintain the 
        coverage within one month following preceding the district's 
        payment of the premium, or (b) if the district is wholly or 
        partially self-insured, pays the district, according to a 
        schedule agreed upon by the teacher and the school board, an 
        amount determined by the school board to be the amount that 
        would be charged for the coverage chosen by the teacher if the 
        school board purchased all health, accident, medical, surgical 
        and hospitalization coverage for its teachers from an 
        insurer.  A school district may enter into an agreement with the 
        exclusive bargaining representative of the teachers in the 
        district where the district agrees, for an individual teacher, 
        to pay all or a portion of the premium for such coverage.  Any 
        such agreement must include a sunset of eligibility to qualify 
        for the payment. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment and applies to agreements in effect or 
        entered into after that date. 
           Sec. 2.  Minnesota Statutes 2002, section 354.094, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SERVICE CREDIT CONTRIBUTIONS.] Upon 
        granting any extended leave of absence under section 122A.46 or 
        136F.43, the employing unit granting the leave must certify the 
        leave to the association on a form specified by the executive 
        director.  A member granted an extended leave of absence under 
        section 122A.46 or 136F.43 may pay employee contributions and 
        receive allowable service credit toward annuities and other 
        benefits under this chapter, for each year of the leave, 
        provided that the member and the employing board make the 
        required employer contribution in any proportion they may agree 
        upon, during the period of the leave.  The employer may enter 
        into an agreement with the exclusive bargaining representative 
        of the teachers in the district under which, for an individual 
        teacher, all or a portion of the employee's contribution is paid 
        by the employer.  Any such agreement must include a sunset of 
        eligibility to qualify for the payment and must not be a part of 
        the collective bargaining agreement.  The leave period must not 
        exceed five years.  A member may not receive more than five 
        years of allowable service credit under this section.  The 
        employee and employer contributions must be based upon the rates 
        of contribution prescribed by section 354.42 for the salary 
        received during the year immediately preceding the extended 
        leave.  Payments for the years for which a member is receiving 
        service credit while on extended leave must be made on or before 
        the later of June 30 of each fiscal year for which service 
        credit is received or within 30 days after first notification of 
        the amount due, if requested by the member, is given by the 
        association.  No payment is permitted after the following 
        September 30.  Payments received after June 30 must include 
        interest at an annual rate of 8.5 percent from June 30 through 
        the end of the month in which payment is received.  
        Notwithstanding the provisions of any agreements to the 
        contrary, employee and employer contributions may not be made to 
        receive allowable service credit if the member does not have 
        full reinstatement rights as provided in section 122A.46 or 
        136F.43, both during and at the end of the extended leave. 
           Any school district paying the employee's retirement 
        contributions under this section shall forward to the applicable 
        retirement association or retirement fund a copy of the 
        agreement executed by the school district and the employee. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment and applies to agreements in effect or 
        entered into after that date. 
           Sec. 3.  [REPORT.] 
           By February 1, 2005, the executive director of the teachers 
        retirement association, the executive secretary of the Duluth 
        teachers retirement fund association, the executive director of 
        the St. Paul teachers retirement fund association, and the 
        executive director of the Minneapolis teachers retirement fund 
        association shall submit a report to the chair of the 
        legislative commission on pensions and retirement summarizing 
        the agreements entered into under Minnesota Statutes, section 
        354.094, subdivision 1, or 354A.091, subdivision 1, on or before 
        December 31, 2004. 

                                   ARTICLE 4 
                          PUBLIC EMPLOYEES RETIREMENT 
                         ASSOCIATION MEMBERSHIP CHANGES 
           Section 1.  Minnesota Statutes 2002, section 353.01, 
        subdivision 2d, is amended to read: 
           Subd. 2d.  [OPTIONAL MEMBERSHIP.] (a) Membership in the 
        association is optional by action of the individual employee for 
        the following public employees who meet the conditions set forth 
        in subdivision 2a: 
           (1) members of the coordinated plan who are also employees 
        of labor organizations as defined in section 353.017, 
        subdivision 1, for their employment by the labor organization 
        only if they elect to have membership under section 353.017, 
        subdivision 2; 
           (2) persons who are elected or persons who are appointed to 
        elected positions other than local governing body elected 
        positions who elect to participate by filing a written election 
        for membership; 
           (3) members of the association who are appointed by the 
        governor to be a state department head and who elect not to be 
        covered by the general state employees retirement plan of the 
        Minnesota state retirement system under section 352.021; and 
           (4) city managers as defined in section 353.028, 
        subdivision 1, who do not elect to be excluded from membership 
        in the association under section 353.028, subdivision 2; and 
           (5) employees of the port authority of the city of St. Paul 
        who were at least age 45 on January 1, 2003, and who elect to 
        participate by filing a written election for membership. 
           (b) Membership in the association is optional by action of 
        the governmental subdivision for the employees of the following 
        governmental subdivisions under the conditions specified: 
           (1) the Minnesota association of townships if the board of 
        the association, at its option, certifies to the executive 
        director that its employees are to be included for purposes of 
        retirement coverage, in which case the status of the association 
        as a participating employer is permanent; and 
           (2) a county historical society if the county in which the 
        historical society is located, at its option, certifies to the 
        executive director that the employees of the historical society 
        are to be county employees for purposes of retirement coverage 
        under this chapter.  The status as a county employee must be 
        accorded to all similarly situated county historical society 
        employees and, once established, must continue as long as a 
        person is an employee of the county historical society. 
           (c) For employees who are covered by paragraph (a), clause 
        (1), (2), or (3), or covered by paragraph (b), if the necessary 
        membership election is not made, the employee is excluded from 
        retirement coverage under this chapter.  For employees who are 
        covered by paragraph (a), clause (4), if the necessary election 
        is not made, the employee must become a member and have 
        retirement coverage under this chapter.  The option to become a 
        member, once exercised under this subdivision, may not be 
        withdrawn until termination of public service as defined under 
        subdivision 11a. 
           Sec. 2.  Minnesota Statutes 2002, section 353.01, 
        subdivision 6, is amended to read: 
           Subd. 6.  [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 
        subdivision" means a county, city, town, school district within 
        this state, or a department or unit of state government, or any 
        public body whose revenues are derived from taxation, fees, 
        assessments or from other sources. 
           (b) Governmental subdivision also means the public 
        employees retirement association, the league of Minnesota 
        cities, the association of metropolitan municipalities, public 
        hospitals owned or operated by, or an integral part of, a 
        governmental subdivision or governmental subdivisions, the 
        association of Minnesota counties, the metropolitan intercounty 
        association, the Minnesota municipal utilities association, the 
        metropolitan airports commission, the Minneapolis employees 
        retirement fund for employment initially commenced after June 
        30, 1979, the range association of municipalities and schools, 
        soil and water conservation districts, economic development 
        authorities created or operating under sections 469.090 to 
        469.108, the port authority of the city of St. Paul, the Spring 
        Lake Park fire department, incorporated, the Red Wing 
        environmental learning center, and the Dakota county 
        agricultural society. 
           (c) Governmental subdivision does not mean any municipal 
        housing and redevelopment authority organized under the 
        provisions of sections 469.001 to 469.047; or any port authority 
        organized under sections 469.048 to 469.089 other than the port 
        authority of the city of St. Paul; or any hospital district 
        organized or reorganized prior to July 1, 1975, under sections 
        447.31 to 447.37 or the successor of the district, nor the 
        Minneapolis community development agency.  
           Sec. 3.  Minnesota Statutes 2002, section 353.028, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELECTION.] (a) A city manager may elect to be 
        excluded from membership in the association.  The election of 
        exclusion must be made within six months following the 
        commencement of employment, in writing on a form prescribed by 
        the executive director, and must be approved by a resolution of 
        the governing body of the city.  The election of exclusion is 
        not effective until it is filed with the executive director.  
        Membership of a city manager in the association ceases on the 
        date the written election is received by the executive director 
        or upon a later date specified.  The election to be excluded 
        from membership must include a provision agreeing that the 
        person will not at any time in the future seek authorization to 
        purchase service credit for any period of excluded service and 
        is irrevocable.  Employee and employer contributions made on 
        behalf of a person exercising the option to be excluded from 
        membership under this section must be refunded in accordance 
        with section 353.27, subdivision 7. 
           (b) A city manager who has elected exclusion under this 
        subdivision may elect to revoke that action by filing a written 
        notice with the executive director.  The notice must be on a 
        form prescribed by the executive director and must be approved 
        by a resolution of the governing body of the city.  Membership 
        of the city manager in the association resumes prospectively 
        from the date of the first day of the pay period for which 
        contributions were deducted or, if pay period coverage dates are 
        not provided, the date on which the notice of revocation or 
        contributions are received in the office of the association, 
        provided that the notice of revocation is received by the 
        association within 60 days of the receipt of contributions. 
           (c) An election under paragraph (b) is irrevocable.  Any 
        election under paragraph (a) or (b) must include a statement 
        that the individual will not seek authorization to purchase 
        service credit for any period of excluded service. 
           Sec. 4.  Minnesota Statutes 2002, section 353D.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBILITY.] (a) Eligibility to participate in 
        the defined contribution plan is available to: 
           (1) elected local government officials of a governmental 
        subdivision who elect to participate in the plan under section 
        353D.02, subdivision 1, and who, for the elected service 
        rendered to a governmental subdivision, are not members of the 
        public employees retirement association within the meaning of 
        section 353.01, subdivision 7; 
           (2) physicians who, if they did not elect to participate in 
        the plan under section 353D.02, subdivision 2, would meet the 
        definition of member under section 353.01, subdivision 7; 
           (3) basic and advanced life support emergency medical 
        service personnel employed by or providing services for any 
        public ambulance service or privately operated ambulance service 
        that receives an operating subsidy from a governmental entity 
        that elects to participate under section 353D.02, subdivision 3; 
        and 
           (4) members of a municipal rescue squad associated with 
        Litchfield in Meeker county, or of a county rescue squad 
        associated with Kandiyohi county, if an independent nonprofit 
        rescue squad corporation, incorporated under chapter 317A, 
        performing emergency management services, and if not affiliated 
        with a fire department or ambulance service and if its members 
        are not eligible for membership in that fire department's or 
        ambulance service's relief association or comparable pension 
        plan; and 
           (5) employees of the port authority of the city of St. Paul 
        who elect to participate in the plan under section 353D.02, 
        subdivision 5, and who are not members of the public employees 
        retirement association under section 353.01, subdivision 7. 
           (b) For purposes of this chapter, an elected local 
        government official includes a person appointed to fill a 
        vacancy in an elective office.  Service as an elected local 
        government official only includes service for the governmental 
        subdivision for which the official was elected by the 
        public-at-large.  Service as an elected local government 
        official ceases and eligibility to participate terminates when 
        the person ceases to be an elected official.  An elected local 
        government official does not include an elected county sheriff.  
           (c) Elected local government officials, physicians, first 
        response personnel and emergency medical service personnel, and 
        rescue squad personnel Individuals otherwise eligible to 
        participate in the plan under this subdivision who are currently 
        covered by a public or private pension plan because of their 
        employment or provision of services are not eligible to 
        participate in the public employees defined contribution plan.  
           (d) A former participant is a person who has terminated 
        eligible employment or service and has not withdrawn the value 
        of the person's individual account. 
           Sec. 5.  Minnesota Statutes 2002, section 353D.02, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [ST. PAUL PORT AUTHORITY PERSONNEL.] Employees of 
        the port authority of the city of St. Paul who do not elect to 
        participate in the general employees retirement plan may elect 
        to participate in the plan by filing a membership application on 
        a form prescribed by the executive director of the association 
        authorizing contributions to be deducted from the employee's 
        salary.  Participation begins on the first day of the pay period 
        for which the contributions were deducted or, if pay period 
        coverage dates are not provided, the date on which the 
        membership application or the contributions are received in the 
        office of the association, whichever is received first, if the 
        membership application is received by the association within 60 
        days of the receipt of the contributions.  An election to 
        participate in the plan is irrevocable.  
           Sec. 6.  [RED WING ENVIRONMENTAL LEARNING CENTER.] 
           (a) The legislature finds that the Red Wing environmental 
        learning center has a long and very close relationship with 
        independent school district No. 256, Red Wing, that Red Wing 
        environmental learning center employees have been treated as 
        independent school district No. 256, Red Wing, employees for 
        retirement coverage purposes for 33 years, and that the current 
        learning center employees would suffer a significant loss in 
        their pension benefit coverage if their membership in the 
        general employees retirement plan of the public employees 
        retirement association was disrupted. 
           (b) Notwithstanding the provisions of any other law to the 
        contrary, independent school district No. 256, Red Wing, may 
        certify to the executive director of the public employees 
        retirement association that employees of the Red Wing 
        environmental learning center are considered school district 
        employees solely for purposes of retirement coverage by the 
        general employees retirement plan under Minnesota Statutes, 
        chapter 353.  This status must be accorded to all similarly 
        situated Red Wing environmental learning center employees. 
           Sec. 7.  [PERA-GENERAL; PRIOR ST. PAUL PORT AUTHORITY 
        SERVICE CREDIT PURCHASE.] 
           Subdivision 1.  [ELIGIBILITY.] A full-time salaried 
        employee or a permanent part-time salaried employee of the port 
        authority of the city of St. Paul who was employed by the port 
        authority during all or part of the period from July 1, 1993, to 
        July 1, 2003, and who is a member of the general employees 
        retirement plan of the public employees retirement association 
        may purchase allowable service credit from the general employees 
        retirement plan. 
           Subd. 2.  [PURCHASABLE SERVICE; MAXIMUM.] (a) The service 
        credit that is purchasable under subdivision 1 is a period or 
        periods of employment by the port authority of the city of St. 
        Paul that would have been eligible service for coverage by the 
        general employees retirement plan of the public employees 
        retirement association if the service had been rendered after 
        July 1, 2003. 
           (b) The maximum period of allowable service credit in the 
        general employees retirement plan of the public employees 
        retirement association for purchase under this section is ten 
        years. 
           Subd. 3.  [PURCHASE PAYMENT REQUIREMENT.] (a) To purchase 
        the service credit, the payment amount must be calculated under 
        Minnesota Statutes, section 356.55. 
           (b) Notwithstanding any provision of Minnesota Statutes, 
        section 356.55, to the contrary, the prior service credit 
        purchase payment may be made in whole or in part on an 
        institution-to-institution basis from a plan qualified under the 
        federal Internal Revenue Code, section 401(a), 401(k), or 
        414(h), or from an annuity qualified under the federal Internal 
        Revenue Code, section 403, or from a deferred compensation plan 
        under the federal Internal Revenue Code, section 457, to the 
        extent permitted by the applicable federal law.  In no event may 
        a prior service credit purchase transfer be paid directly to the 
        person purchasing the service. 
           Subd. 4.  [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An 
        eligible person described in subdivision 1 must provide any 
        documentation related to eligibility to make this service credit 
        purchase required by the executive director of the public 
        employees retirement association. 
           (b) Allowable service credit for the purchase period or 
        periods must be granted by the general employees retirement plan 
        of the public employees retirement association on behalf of the 
        eligible person upon receipt of the prior service credit 
        purchase payment amount. 
           Subd. 5.  [SUNSET.] Authority to purchase service credit 
        under this section expires on December 31, 2004. 
           Sec. 8.  [PRIOR SERVICE; VESTING.] 
           For purposes of vesting under Minnesota Statutes, section 
        353.29, subdivision 1, only, a full-time salaried employee or a 
        permanent part-time salaried employee of the port authority of 
        the city of St. Paul who was employed by the port authority on 
        July 1, 2003, and who is a member of the general employees 
        retirement plan of the public employees retirement association 
        may use months of employment with the port authority before that 
        date.  This service may not be used to calculate a retirement 
        annuity or a disability benefit provided for under Minnesota 
        Statutes, chapter 353.  
           Sec. 9.  [DEFINED CONTRIBUTION PLAN; ONETIME ELECTION.] 
           Employees of the port authority of the city of St. Paul who 
        do not exercise the right to become members of the general 
        employees retirement plan of the public employees retirement 
        association under section 1 may, by onetime election, choose to 
        participate in the public employees retirement association's 
        defined contribution plan under Minnesota Statutes, sections 
        353D.01 to 353D.12.  The election is irrevocable. 
           Sec. 10.  [EFFECTIVE DATE.] 
           (a) Section 2 with respect to the Red Wing environmental 
        learning center, and section 6 are effective the day after the 
        school board of independent school district No. 256, Red Wing, 
        and its chief clerical officer timely complete their compliance 
        with Minnesota Statutes, section 645.021, subdivisions 2 and 3, 
        and certification to the executive director of the public 
        employees retirement association. 
           (b) Section 2, with respect to the port authority of the 
        city of St. Paul, is effective the day following final enactment.
           (c) Sections 1, 4, 5, 6, 8, and 9 are effective the day 
        following final enactment. 
           (d) Coverage by the general employees retirement plan of 
        the public employees retirement association under sections 1 and 
        2 commences July 1, 2003. 

                                   ARTICLE 5 
                         PUBLIC HOSPITAL PRIVATIZATION 
           Section 1.  Minnesota Statutes 2002, section 353F.02, 
        subdivision 4, is amended to read: 
           Subd. 4.  [MEDICAL FACILITY.] "Medical facility" means: 
           (1) the Glencoe area health center; 
           (2) the Luverne public hospital; 
           (3) the Waconia-Ridgeview medical center; and 
           (4) the Kanabec hospital; and 
           (5) the Renville county hospital in Olivia. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective upon the latter of: 
           (1) the day after the governing body of Renville county and 
        its chief clerical officer timely complete their compliance with 
        Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 
           (2) the first day of the month next following certification 
        to the Renville county board by the executive director of the 
        public employees retirement association that the actuarial 
        accrued liability of the special benefit coverage proposed for 
        extension to the privatized Renville county hospital employees 
        under section 1 does not exceed the actuarial gain otherwise to 
        be accrued by the public employees retirement association, as 
        calculated by the consulting actuary retained by the legislative 
        commission on pensions and retirement.  The cost of the 
        actuarial calculations must be borne by the Renville county 
        hospital. 

                                   ARTICLE 6 
                        GENERAL SERVICE CREDIT PURCHASES 
           Section 1.  Minnesota Statutes 2002, section 356.55, 
        subdivision 7, is amended to read: 
           Subd. 7.  [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 
        PROCEDURE.] (a) This section expires and is repealed on July 
        1, 2003 2004. 
           (b) Authority for any public pension plan to accept a prior 
        service credit payment that is calculated in a timely fashion 
        under this section expires on October 1, 2003 2004. 
           Sec. 2.  Laws 1999, chapter 222, article 16, section 16, as 
        amended by Laws 2002, chapter 392, article 7, section 1, is 
        amended to read: 
           Sec. 16.  [REPEALER.] 
           Sections 1 to 13 are repealed on May 16, 2003 2004. 
           Sec. 3.  Laws 2000, chapter 461, article 4, section 4, is 
        amended to read: 
           Sec. 4.  [EFFECTIVE DATE; SUNSET REPEALER.] 
           (a) Sections 1, 2, and 3 are effective on the day following 
        final enactment. 
           (b) Sections 1, 2, and 3 are repealed on May 16, 2003 2004. 
           Sec. 4.  Laws 2000, chapter 461, article 12, section 20, as 
        amended by Laws 2002, chapter 392, article 7, section 2, is 
        amended to read: 
           Sec. 20.  [EFFECTIVE DATE.] 
           (a) Sections 4, 5, and 11 to 20 are effective on the day 
        following final enactment. 
           (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 
        following final enactment and apply retroactively to a faculty 
        member of the Lake Superior College who was granted an extended 
        leave of absence under article 19, section 4, of the united 
        technical college educators master agreement for the 1999-2000 
        academic year prior to March 20, 2000. 
           (c) Sections 5, 11, and 14, paragraph (c), expire on May 
        16, 2003 2004.  
           Sec. 5.  Laws 2001, First Special Session chapter 10, 
        article 6, section 21, as amended by Laws 2002, chapter 392, 
        article 7, section 3, is amended to read: 
           Sec. 21.  [EXPIRATION DATE.] 
           (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 
        18, 19, and 20 expire May 16, 2003 2004. 
           (b) Sections 9 and 15 expire May 16, 2003 2004. 
           Sec. 6.  [PERA-GENERAL; SERVICE CREDIT PURCHASE 
        AUTHORIZED.] 
           (a) Notwithstanding any provision of law to the contrary, 
        an eligible person described in paragraph (b), (c), or (d) is 
        authorized to purchase allowable service credit from the general 
        employees retirement plan of the public employees retirement 
        association under Minnesota Statutes, section 356.55 or 356.551, 
        for the applicable period of prior employment as a council 
        member of the city of St. Louis Park which was not credited by 
        the general employees retirement plan of the public employees 
        retirement association as indicated in paragraph (e). 
           (b) An eligible person is a person who: 
           (1) is a current member of the St. Louis Park city council 
        and is a current member of the general employees retirement plan 
        of the public employees retirement association; 
           (2) was born on September 26, 1941; 
           (3) became a St. Louis Park city council member on January 
        1, 1996; and 
           (4) was not a member of the general employees retirement 
        plan of the public employees retirement association for the 
        period January 1, 1996, to January 29, 2000. 
           (c) An eligible person is a person who: 
           (1) is a current member of the St. Louis Park city council 
        and is a current member of the general employees retirement plan 
        of the public employees retirement association; 
           (2) was born on October 8, 1949; 
           (3) became a St. Louis Park city council member on June 8, 
        1999; and 
           (4) was not a member of the general employees retirement 
        plan of the public employees retirement association for the 
        period June 8, 1999, to January 12, 2002. 
           (d) An eligible person is a person who: 
           (1) is a current member of the St. Louis Park city council 
        and is a current member of the general employees retirement plan 
        of the public employees retirement association; 
           (2) was born on June 4, 1964; 
           (3) became a St. Louis Park city council member on November 
        18, 1997; and 
           (4) was not a member of the general employees retirement 
        plan of the public employees retirement association for the 
        period November 18, 1997, to March 9, 2002. 
           (e) The allowable service credit purchase period is limited 
        to the period of St. Louis Park city council service that was 
        not covered by the general employees retirement plan of the 
        public employees retirement association.  
           (f) The eligible person must provide all relevant 
        documentation of the applicability of the requirements set forth 
        in paragraph (b), (c), or (d) and any other applicable 
        information that the executive director of the public employees 
        retirement association may request. 
           (g) Allowable service credit for the purchase period must 
        be granted by the general employees retirement plan of the 
        public employees retirement association to the eligible person 
        upon receipt of the prior service credit purchase payment amount.
           (h) Notwithstanding Minnesota Statutes, section 356.55, 
        subdivision 5, or 356.551, subdivision 2, whichever applies, the 
        city of St. Louis Park is not permitted to pay any portion of 
        the service credit purchase payment amount. 
           (i) The prior service credit purchase authority expires on 
        July 1, 2004, or on the date of the termination of active St. 
        Louis Park city council service by the eligible person, 
        whichever occurs earlier. 
           Sec. 7.  [REPEALER.] 
           Minnesota Statutes 2002, sections 354.541 and 354A.109, are 
        repealed on May 16, 2004. 
           Sec. 8.  [EFFECTIVE DATE.] 
           Sections 1 to 7 are effective on the day following final 
        enactment. 

                                   ARTICLE 7 
                       SUPPLEMENTAL PENSION PLAN COVERAGE 
           Section 1.  Minnesota Statutes 2002, section 356.24, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
        for a school district or other governmental subdivision or state 
        agency to levy taxes for, or to 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 chapter 354B; 
           (4) to a plan that provides solely for severance pay under 
        section 465.72 to a retiring or terminating employee; 
           (5) for employees other than personnel employed by the 
        board of trustees of the Minnesota state colleges and 
        universities and covered under the higher education supplemental 
        retirement plan under chapter 354C, if the supplemental plan 
        coverage is provided for in a personnel policy of the public 
        employer or in the collective bargaining agreement between the 
        public employer 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 
        contribution made to any investment eligible under section 
        403(b) of the Internal Revenue Code, 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; 
           (6) for personnel employed by the board of trustees of the 
        Minnesota state colleges and universities and not covered by 
        clause (5), to the supplemental retirement plan under chapter 
        354C, if the supplemental plan coverage is 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 $2,700 a year for each 
        employee; 
           (7) to a supplemental plan or to a governmental trust to 
        save for postretirement health care expenses qualified for 
        tax-preferred treatment under the Internal Revenue Code, if the 
        supplemental plan coverage is provided for in a personnel policy 
        or in the collective bargaining agreement of a public employer 
        with the exclusive representative of the covered employees in an 
        appropriate unit; 
           (8) to the laborer's national industrial pension fund for 
        the employees of a governmental subdivision who are covered by a 
        collective bargaining agreement that provides for coverage by 
        that fund and that sets forth a fund contribution rate, but not 
        to exceed an employer contribution of $2,000 per year per 
        employee; 
           (9) to the plumbers' and pipefitters' national pension fund 
        or to a plumbers' and pipefitters' local pension fund for the 
        employees of a governmental subdivision who are covered by a 
        collective bargaining agreement that provides for coverage by 
        that fund and that sets forth a fund contribution rate, but not 
        to exceed an employer contribution of $2,000 per year per 
        employee; 
           (10) to the international union of operating engineers 
        pension fund for the employees of a governmental subdivision who 
        are covered by a collective bargaining agreement that provides 
        for coverage by that fund and that sets forth a fund 
        contribution rate, but not to exceed an employer contribution of 
        $2,000 per year per employee; or 
           (11) to a supplemental plan organized and operated under 
        the federal Internal Revenue Code, as amended, that is wholly 
        and solely funded by the employee's accumulated sick leave, 
        accumulated vacation leave, and accumulated severance pay. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective the day after final enactment. 

                                   ARTICLE 8 
                           GENERAL RETIREMENT CHANGES 
           Section 1.  Minnesota Statutes 2002, section 356B.05, is 
        amended to read: 
           356B.05 [PUBLIC PENSION ADMINISTRATION LEGISLATION.] 
           (a) Proposed administrative legislation recommended by or 
        on behalf of the Minnesota state retirement system, the public 
        employees retirement association, the teachers retirement 
        association, the Minneapolis employees retirement fund, or a 
        first class city teachers retirement fund association, and 
        proposed retirement-related legislation recommended by the 
        Minnesota state colleges and universities system must be 
        presented to the legislative commission on pensions and 
        retirement, the state and local governmental operations 
        committee of the senate, and the governmental operations and 
        veterans affairs policy committee of the house of 
        representatives on or before October 1 of each year in order for 
        the proposed administrative legislation to be acted upon during 
        the upcoming legislative session.  The executive director or the 
        deputy executive director of the legislative commission on 
        pensions and retirement shall provide written comments on the 
        proposed administrative provisions to the public pension plans 
        by November 15 of each year. 
           (b) Proposed administrative legislation recommended by or 
        on behalf of a public employee pension plan or system under 
        paragraph (a) must address provisions: 
           (1) authorizing allowable service credit for leaves of 
        absence and related circumstances; 
           (2) governing offsets or deductions from the amount of 
        disability benefits; 
           (3) authorizing the purchase of allowable service credit 
        for prior uncredited periods; 
           (4) governing subsequent employment earnings by reemployed 
        annuitants; and 
           (5) authorizing retroactive effect for retirement annuity 
        or benefit applications. 
           (c) Where possible and desirable, taking into account the 
        differences among the public pension plans in existing law and 
        the unique characteristics of the individual public pension fund 
        memberships, uniform provisions relating to paragraph (b) for 
        all applicable public pension plans must be presented for 
        consideration during the legislative session.  Supporting 
        documentation setting forth the policy rationale for each set of 
        uniform provisions must accompany the proposed administrative 
        legislation. 

                                   ARTICLE 9 
                         STATEWIDE RESTRUCTURED TEACHER
                        RETIREMENT PLAN ACTUARIAL STUDY 
           Section 1.  [ACTUARIAL STUDY OF COSTS TO RESTRUCTURE 
        TEACHER PLANS.] 
           Subdivision 1.  [STUDY MANDATED.] The actuary retained by 
        the legislative commission on pensions and retirement shall 
        prepare an additional actuarial valuation report, using the 
        results of the 2003 actuarial valuation reports prepared under 
        Minnesota Statutes, section 356.215, that considers the 
        feasibility of restructuring the Minnesota teachers retirement 
        association, the Minneapolis teachers retirement fund 
        association, the St. Paul teachers retirement fund association, 
        and the Duluth teachers retirement plan and fund association 
        into a new restructured fund. 
           Subd. 2.  [CONTENTS OF STUDY.] The actuarial valuation 
        report must be based on the proposals put forth in the report 
        mandated by the legislature in Laws 2001, First Special Session 
        chapter 10, article 11, section 20, and filed February 15, 2002, 
        including changes to the postretirement adjustment, benefits, 
        and restructuring administrative costs and including asset 
        transfers. 
           Subd. 3.  [INFORMATION PROVIDED.] The executive director of 
        the teachers retirement association, the executive secretary of 
        the Duluth teachers retirement fund association, the executive 
        director of the St. Paul teachers retirement fund association, 
        and the executive director of the Minneapolis teachers 
        retirement fund association must consult with the task force 
        established under Laws 2001, First Special Session chapter 10, 
        article 11, section 20, and must provide the commission-retained 
        actuary with all necessary information requested for the 
        preparation of this report. 
           Subd. 4.  [COSTS.] The cost of the actuarial valuation 
        report mandated in this section will be paid by the pension 
        funds named in this legislation.  The cost must be allocated 
        equally between the four pension funds.  The executive director 
        of the Minneapolis teachers retirement fund association shall 
        serve as the fiscal agent for this study, shall pay its cost, 
        and shall be reimbursed by the other three retirement funds for 
        their appropriate share. 
           Subd. 5.  [FILING DATE.] The report must be filed by 
        January 15, 2004, with the chair of the legislative commission 
        on pensions and retirement, the chair of the senate committee on 
        state and local government operations, and the chair of the 
        house committee on government operations and veterans affairs 
        policy. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective on the day following final enactment.

                                   ARTICLE 10 
                         LOCAL RETIREMENT PLAN CHANGES 
           Section 1.  Minnesota Statutes 2002, 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 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 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 administrator, in its the sole 
        discretion of the administrator.  
           (2) In the event of the death of a participant leaving a 
        surviving spouse, the surviving spouse 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 administrator, in its the sole 
        discretion of the administrator.  Upon the death of the 
        surviving spouse, any shares remaining in the participant's 
        share account record must be redeemed by the county of Hennepin 
        and the cash realized 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 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 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 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. 2.  Minnesota Statutes 2002, section 383B.493, is 
        amended to read: 
           383B.493 [WITHDRAWAL FROM PARTICIPATION.] 
           Notwithstanding Laws 1982, chapter 450, or any other law to 
        the contrary, a Hennepin county employee participating in the 
        Hennepin county supplemental retirement program pursuant to Laws 
        1982, chapter 450 may, in the event of an unforeseeable 
        emergency, apply to the county to discontinue participation in 
        the program.  Employees who are no longer participating in the 
        program may apply for the redemption of all shares credited to 
        their share account record.  Applications are subject to 
        approval of the Hennepin county board of commissioners 
        administrator in its the sole discretion of the administrator.  
        For the purposes of this section, the term "unforeseeable 
        emergency" shall mean a severe financial hardship to the 
        participant resulting from a sudden and unexpected illness or 
        accident of the participant or a person dependent upon the 
        participant, loss of participant's property due to casualty, or 
        other similar extraordinary and unforeseeable circumstances 
        arising as a result of events beyond the control of the 
        participant.  Applications based on foreseeable expenditures 
        normally budgetable shall not be approved.  A participant 
        exercising the option provided by this section shall be 
        ineligible for further participation in the supplemental 
        retirement program. 
           Sec. 3.  [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 
        HOC POSTRETIREMENT ADJUSTMENT.] 
           In addition to the current pensions and other retirement 
        benefits payable, the pensions and retirement benefits payable 
        to retired police officers and firefighters and their surviving 
        spouses by the Eveleth police and fire trust fund are increased 
        by $100 per month.  Increases are retroactive to January 1, 2003.
           Sec. 4.  [EFFECTIVE DATE.] 
           (a) Sections 1 and 2 are effective upon approval by the 
        Hennepin county board of commissioners and compliance with 
        Minnesota Statutes, section 645.021. 
           (b) Section 3 is effective on the day after the date on 
        which the Eveleth city council and the chief clerical officer of 
        the city of Eveleth comply with Minnesota Statutes, section 
        645.021, subdivisions 2 and 3. 

                                   ARTICLE 11 
                        MINNEAPOLIS FIREFIGHTERS RELIEF
                              ASSOCIATION CHANGES 
           Section 1.  Minnesota Statutes 2002, section 423C.03, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COMPENSATION OF OFFICERS AND BOARD MEMBERS.] 
        Notwithstanding any other law to the contrary, the association 
        may provide for payment of the following salaries to its 
        officers and board members: 
           (1) the executive secretary may receive a salary not 
        exceeding 30 50 percent of the maximum salary of a first grade 
        firefighter; 
           (2) the president may receive a salary not exceeding ten 
        percent of the maximum salary of a first grade firefighter; and 
           (3) all other elected members of the board may receive a 
        salary not exceeding 2.5 percent of the maximum salary of a 
        first grade firefighter. 
           Sec. 2.  Minnesota Statutes 2002, section 423C.08, is 
        amended to read: 
           423C.08 [MEMBER CONTRIBUTION REFUND TO BENEFICIARY UPON 
        DEATH.] 
           If an active, deferred, or retired member of the 
        association dies and no survivor benefit is payable, the 
        designated beneficiary of the decedent or, if none, the legal 
        representative of the estate of the decedent is entitled, upon 
        application, to a refund.  The refund shall be an amount equal 
        to the member contributions to the credit of the decedent, plus 
        interest on those contributions at an annual compounded rate of 
        five percent from the first day of the month following the date 
        of the contribution to the first day of the month following the 
        date of death of the decedent, reduced by the sum of any service 
        pension or disability benefit previously paid by the fund to the 
        decedent. 
           Sec. 3.  [INTENT.] 
           Section 2 is intended to bring the Minneapolis firefighters 
        relief association's statutory provision which provides for a 
        refund of member contributions where the decedent does not leave 
        a surviving spouse or children in conformance with Minnesota 
        Statutes 2002, section 423A.18. 
           Sec. 4.  [EFFECTIVE DATE.] 
           (a) The board of the Minneapolis firefighters relief 
        association may increase the salary of the executive secretary 
        subject to the applicable maximum set forth in section 1. 
           (b) Any salary increase under paragraph (a) may be 
        effective on September 1, 2002, or any time thereafter as 
        designated by the relief association board providing that the 
        requirements specified in section 1 are satisfied during the 
        applicable time period. 
           (c) Section 2 is effective retroactive to September 25, 
        2001.  Section 3 is effective on the day following final 
        enactment. 

                                   ARTICLE 12 
                          VOLUNTEER FIREFIGHTER RELIEF 
                              ASSOCIATION CHANGES 
           Section 1.  Minnesota Statutes 2002, section 424A.02, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) Annually 
        on or before August 1 of each year as part of the certification 
        of the financial requirements and minimum municipal 
        obligation made pursuant to determined under section 69.772, 
        subdivision 4, or 69.773, subdivision 5, as applicable, the 
        secretary or some other official of the relief association 
        designated in the bylaws of each relief association shall 
        calculate and certify to the governing body of the applicable 
        qualified municipality the average amount of available financing 
        per active covered firefighter for the most recent three-year 
        period.  The amount of available financing shall include any 
        amounts of fire state aid received or receivable by the relief 
        association, any amounts of municipal contributions to the 
        relief association raised from levies on real estate or from 
        other available revenue sources exclusive of fire state aid, and 
        one-tenth of the amount of assets in excess of the accrued 
        liabilities of the relief association calculated pursuant to 
        sections under section 69.772, subdivision 2; 69.773, 
        subdivisions 2 and 4; or 69.774, subdivision 2, if any.  
           (b) The maximum service pension which the relief 
        association has authority to provide for in its bylaws for 
        payment to a member retiring after the calculation date when the 
        minimum age and service requirements specified in subdivision 1 
        are met must be determined using the table in paragraph (c) or 
        (d), whichever applies. 
           (c) For a relief association where the governing bylaws 
        provide for a monthly service pension to a retiring member, the 
        maximum monthly service pension amount per month for each year 
        of service credited that may be provided for in the bylaws is 
        the maximum service pension figure corresponding to the average 
        amount of available financing per active covered firefighter: 
          Minimum Average Amount of      Maximum Service Pension
          Available Financing per        Amount Payable per Month
               Firefighter               for Each Year of Service
                 $...                             $ .25
                   42                               .50
                   84                              1.00
                  126                              1.50
                  168                              2.00
                  209                              2.50
                  252                              3.00
                  294                              3.50
                  335                              4.00
                  378                              4.50
                  420                              5.00
                  503                              6.00
                  587                              7.00
                  672                              8.00
                  755                              9.00
                  839                             10.00
                  923                             11.00
                 1007                             12.00
                 1090                             13.00
                 1175                             14.00
                 1259                             15.00
                 1342                             16.00
                 1427                             17.00
                 1510                             18.00
                 1594                             19.00
                 1677                             20.00
                 1762                             21.00
                 1845                             22.00
                 1888                             22.50
                 1929                             23.00
                 2014                             24.00
                 2098                             25.00
                 2183                             26.00
                 2267                             27.00
                 2351                             28.00
                 2436                             29.00
                 2520                             30.00
                 2604                             31.00
                 2689                             32.00
                 2773                             33.00
                 2857                             34.00
                 2942                             35.00
                 3026                             36.00
                 3110                             37.00
                 3963 3194                        38.00
                 4047 3278                        39.00
                 4137 3362                        40.00
           Effective beginning December 31, 2000: 
                 4227 3446                        41.00
                 4317 3530                        42.00
                 4407 3614                        43.00
                 4497 3698                        44.00
           Effective beginning December 31, 2001: 
                 4587 3782                        45.00
                 4677 3866                        46.00
                 4767 3950                        47.00
                 4857 4034                        48.00
           Effective beginning December 31, 2002: 
                 4947 4118                        49.00
                 5037 4202                        50.00
                 5127 4286                        51.00
                 5217 4370                        52.00
           Effective beginning December 31, 2003: 
                 5307 4454                        53.00
                 5397 4538                        54.00
                 5487 4622                        55.00
                 5577 4706                        56.00
           (d) For a relief association in which the governing bylaws 
        provide for a lump sum service pension to a retiring member, the 
        maximum lump sum service pension amount for each year of service 
        credited that may be provided for in the bylaws is the maximum 
        service pension figure corresponding to the average amount of 
        available financing per active covered firefighter for the 
        applicable specified period: 
         Minimum Average Amount         Maximum Lump Sum Service
         of Available Financing         Pension Amount Payable
            per Firefighter             for Each Year of Service
                $..                              $10
                 11                               20
                 16                               30
                 23                               40
                 27                               50
                 32                               60
                 43                               80
                 54                              100
                 65                              120
                 77                              140
                 86                              160
                 97                              180
                108                              200
                131                              240
                151                              280
                173                              320
                194                              360
                216                              400
                239                              440
                259                              480
                281                              520
                302                              560
                324                              600
                347                              640
                367                              680
                389                              720
                410                              760
                432                              800
                486                              900
                540                             1000
                594                             1100
                648                             1200
                702                             1300
                756                             1400
                810                             1500
                864                             1600
                918                             1700
                972                             1800
               1026                             1900
               1080                             2000
               1134                             2100
               1188                             2200
               1242                             2300
               1296                             2400
               1350                             2500
               1404                             2600
               1458                             2700
               1512                             2800
               1566                             2900
               1620                             3000
               1672                             3100
               1726                             3200
               1753                             3250
               1780                             3300
               1820                             3375
               1834                             3400
               1888                             3500
               1942                             3600
               1996                             3700
               2023                             3750
               2050                             3800
               2104                             3900
               2158                             4000
               2212                             4100
               2265                             4200
               2319                             4300
               2373                             4400
               2427                             4500
               2481                             4600
               2535                             4700
               2589                             4800
               2643                             4900
               2697                             5000
               2751                             5100
               2805                             5200
               2859                             5300
               2913                             5400
               2967                             5500
           Effective beginning December 31, 2000: 
               3021                             5600
               3075                             5700
               3129                             5800
               3183                             5900
               3237                             6000
           Effective beginning December 31, 2001: 
               3291                             6100
               3345                             6200
               3399                             6300
               3453                             6400
               3507                             6500
           Effective beginning December 31, 2002: 
               3561                             6600
               3615                             6700
               3669                             6800
               3723                             6900
               3777                             7000
           Effective beginning December 31, 2003: 
               3831                             7100
               3885                             7200
               3939                             7300
               3993                             7400
               4047                             7500
           (e) For a relief association in which the governing bylaws 
        provide for a monthly benefit service pension as an alternative 
        form of service pension payment to a lump sum service pension, 
        the maximum service pension amount for each pension payment type 
        must be determined using the applicable table contained in this 
        subdivision. 
           (f) If a relief association establishes a service pension 
        in compliance with the applicable maximum contained in paragraph 
        (c) or (d) and the minimum average amount of available financing 
        per active covered firefighter is subsequently reduced because 
        of a reduction in fire state aid or because of an increase in 
        the number of active firefighters, the relief association may 
        continue to provide the prior service pension amount specified 
        in its bylaws, but may not increase the service pension amount 
        until the minimum average amount of available financing per 
        firefighter under the table in paragraph (c) or (d), whichever 
        applies, permits. 
           (g) No relief association is authorized to provide a 
        service pension in an amount greater than the largest applicable 
        flexible service pension maximum amount even if the amount of 
        available financing per firefighter is greater than the 
        financing amount associated with the largest applicable flexible 
        service pension maximum. 
           Sec. 2.  [BENEFIT RATIFICATION; WHITE BEAR LAKE.] 
           Notwithstanding Minnesota Statutes, section 424A.02, 
        subdivisions 3 and 3a, to the contrary, the service pension 
        amounts specified in the bylaws of the White Bear Lake fire 
        department relief association following bylaw amendments in 
        January 1999 and prior to the effective date of this section are 
        ratified. 
           Sec. 3.  [MARSHALL VOLUNTEER FIRE.] 
           Notwithstanding any provision of Minnesota Statutes, 
        section 424A.02, subdivision 7, or other law to the contrary, as 
        a pilot project, the Marshall volunteer firefighter relief 
        association may amend its bylaws to pay interest on deferred 
        lump sum payment pensions based on a rate determined annually by 
        the board of trustees based on the actual time weighted total 
        rate of return investment performance of the special fund as 
        reported by the office of the state auditor under Minnesota 
        Statutes, section 356.219, up to five percent, and applied 
        consistently for all deferred service pensioners. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Section 3 is effective on the day after the date on which 
        the Marshall city council and the chief clerical officer of the 
        city of Marshall comply with Minnesota Statutes, section 
        645.021, subdivisions 2 and 3. 

                                   ARTICLE 13 
                     PLYMOUTH VOLUNTEER FIREFIGHTER RELIEF
                     ASSOCIATION ANCILLARY BENEFIT CHANGES 
           Section 1.  Laws 1978, chapter 685, section 1, as amended 
        by Laws 1979, chapter 201, section 41, is amended to read: 
           Section 1.  [PLYMOUTH VOLUNTEER FIREFIGHTERS' RELIEF 
        ASSOCIATION.] 
           The bylaws of the Plymouth firefighter's relief association 
        may be amended to provide for payment of a disability pension in 
        an amount equal to $8.50 per month per year of service, to a 
        maximum of $255 per month consistent with the ancillary benefit 
        requirements specified in Minnesota Statutes, section 424A.02, 
        subdivision 9, to a firefighter qualified pursuant to determined 
        to be disabled, as defined in the bylaws of the association and 
        under procedures specified in those bylaws.  No member shall be 
        entitled to draw both a disability pension and a service pension.
           Sec. 2.  Laws 1978, chapter 685, section 2, is amended to 
        read: 
           Sec. 2.  The Plymouth firefighter's relief association may 
        provide for a benefit to the surviving spouse of a volunteer 
        firefighter who died, providing that the surviving spouse 
        qualifies under the terms of the bylaws, such benefit to be paid 
        as the bylaws of the association may provide, except that the 
        bylaws may not provide for a spouse's benefit of more than 
        $127.50 per month, and provided the benefit shall cease as of 
        the date of the spouse's remarriage and the benefit is 
        consistent with ancillary benefit requirements specified in 
        Minnesota Statutes, section 424A.02, subdivision 9. 
           Sec. 3.  Laws 1978, chapter 685, section 3, is amended to 
        read: 
           Sec. 3.  The Plymouth firefighter's relief association may 
        pay a pension for the children of deceased members, as the 
        association's bylaws may provide, consistent with ancillary 
        benefit requirements specified in Minnesota Statutes, section 
        424A.02, subdivision 9. 
           Sec. 4.  Laws 1978, chapter 685, section 6, is amended to 
        read: 
           Sec. 6.  (a) The bylaws of the Plymouth firefighter's 
        relief association may further provide that when any active or 
        deferred member of the association or any pensioner who is a 
        former member disabilitant or service pension recipient dies, 
        there may be paid a death or funeral benefit to defray or assist 
        the family of the deceased with funeral expenses. 
           (b) A benefit paid under this section due to the death of 
        an active or deferred member must conform to Minnesota Statutes, 
        section 424A.02, subdivision 9. 
           (c) A death or funeral benefit may be paid under this 
        section to the family of a deceased disabilitant or service 
        pensioner notwithstanding Minnesota Statutes, section 424A.02, 
        subdivision 9, providing that liabilities relating to this 
        benefit are recognized in determinations of actuarial condition 
        and funding costs, as determined under section 69.772 or 69.773, 
        whichever is applicable.  Notwithstanding any law to the 
        contrary, the association is authorized to use a load factor or 
        factors to recognize liabilities relating to funeral or death 
        benefits paid to the family of a deceased disabilitant or 
        service pensioner.  Benefits are not payable under this 
        paragraph if the city council does not approve the load factor 
        or factors used in determinations of actuarial conditions and 
        funding costs. 
           Sec. 5.  [REPEALER.] 
           Laws 1978, chapter 685, section 5, is repealed.  
           Sec. 6.  [EFFECTIVE DATE.] 
           Sections 1 to 5 are effective on the day after the date on 
        which the Plymouth city council and the chief clerical officer 
        of the city of Plymouth complete in a timely manner their 
        compliance with Minnesota Statutes, section 645.021, 
        subdivisions 2 and 3. 

                                   ARTICLE 14 
                    PRIOR SERVICE CREDIT PURCHASE PROVISIONS
           Section 1.  Laws 2000, chapter 461, article 19, section 6, 
        is amended to read:  
           Sec. 6. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 
        UNCREDITED TEACHING SERVICE PERIODS.] 
           (a) An eligible person described in paragraph (b) is 
        entitled to purchase allowable service credit from the 
        Minneapolis teachers retirement fund association basic program 
        for the periods of teaching employment specified in paragraph 
        (c) by making the payment required under Minnesota Statutes, 
        section 356.55. 
           (b) An eligible person is a person who:  
           (1) was employed by special school district No. 1 
        (Minneapolis) as a long call reserve teacher from October 1972 
        to June 1973 and was covered by the Minneapolis employees 
        retirement fund; 
           (2) was employed by special school district No. 1 
        (Minneapolis) as a school social worker at Franklin junior high 
        school from August 28, 1973, through June 12, 1974, and from 
        August 29, 1974, through June 11, 1975, without retirement 
        coverage; 
           (3) was employed by special school district No. 1 
        (Minneapolis) as a school social worker at North high school 
        from August 29, 1975, through December 19, 1975, covered by the 
        Minneapolis teachers retirement fund association; 
           (4) was retained by special school district No. 1 
        (Minneapolis) in the capacity of a school social worker at North 
        high school as an hourly wage social worker from August 1976 
        through June 1983 without retirement coverage; and 
           (5) is currently employed by Hennepin county covered by the 
        public employees retirement association.  
           (c) The periods for allowable service credit purchase are 
        August 28, 1973, through June 12, 1974; and August 29, 1974, 
        through June 11, 1975.  
           (d) An eligible person must provide any relevant 
        documentation related to eligibility to make this service credit 
        purchase required by the executive director of the Minneapolis 
        teachers retirement fund association.  
           (e) Allowable service credit for the purchase periods must 
        be granted by the Minneapolis teachers retirement fund 
        association to the account of the eligible person upon receipt 
        of the prior service credit purchase payment amount.  Authority 
        provided by this section is voided if payment is not made before 
        December 31, 2003, or before commencing receipt of an annuity 
        from the Minneapolis teachers retirement fund association, 
        whichever is earlier.  
           (f) The prior service credit purchase payment amount shall 
        be computed by the actuary retained by the legislative 
        commission on pensions and retirement. That computation must 
        give recognition, in applying the process stated in Minnesota 
        Statutes, section 356.55, give recognition to the liabilities 
        that would be created in the Minneapolis teachers retirement 
        fund association and other Minnesota public pension funds due to 
        the service credit purchase.  
           (g) Following receipt of that purchase payment amount, the 
        executive director of the Minneapolis teachers retirement fund 
        association shall allocate and transmit that amount to the 
        applicable pension administrations, as determined under 
        paragraph (f). 
           Sec. 2.  [TEACHERS RETIREMENT ASSOCIATION; SERVICE CREDIT 
        PURCHASE FOR SABBATICAL LEAVES.] 
           (a) Notwithstanding Minnesota Statutes, section 354.092, or 
        any other law to the contrary, an eligible person described in 
        paragraph (b) is entitled to purchase not more than three years 
        of allowable service credit from the teachers retirement 
        association for sabbatical leave as defined in Minnesota 
        Statutes, section 122A.49. 
           (b) An eligible person is a person who: 
           (1) worked as a teacher for independent school district No. 
        191, Burnsville-Eagan-Savage; 
           (2) was on sabbatical leave at some time between January 1, 
        1982, and December 31, 1989; and 
           (3) did not receive service credit for time on sabbatical 
        leave because the leave was not properly reported to the 
        teachers retirement association. 
           (c) An eligible person described in paragraph (b) must 
        apply with the executive director of the teachers retirement 
        association to make a service credit purchase under this 
        section.  The application must be in writing and must include 
        all necessary documentation of the applicability of this section 
        and any other relevant information that the executive director 
        may require. 
           (d) Allowable service credit for the purchase periods must 
        be granted by the teachers retirement association to the account 
        of an eligible person upon receipt of the portion of the prior 
        service credit purchase payment amount payable under paragraph 
        (e) in a lump sum by the applicable eligible person. 
           (e) Notwithstanding Minnesota Statutes, section 356.55 or 
        356.551, whichever is applicable, an eligible person may pay 
        before September 1, 2003, or the date of termination from 
        service, whichever is earlier, an amount equal to the employee 
        contribution rate or rates in effect during the applicable 
        sabbatical leave period or periods specified in paragraph (b) 
        applied to the actual salary rate or rates in effect during that 
        period or periods, plus annual compound interest at the rate of 
        8.5 percent from the midpoint of each applicable sabbatical 
        leave period, to the date on which the payment is actually 
        made.  Independent school district No. 191 must pay the 
        remaining balance of the prior service credit purchase payment 
        amount calculated under Minnesota Statutes, section 356.55 or 
        356.551, whichever is applicable, within 30 days of the payment 
        by an eligible person.  The executive director of the teachers 
        retirement association must notify the superintendent of 
        independent school district No. 191 of its payment amount and 
        payment due date if an eligible person makes the required 
        payment. 
           (f) If independent school district No. 191 fails to pay its 
        portion of the required prior service credit purchase payment 
        amount, the executive director of the teachers retirement 
        association must notify the commissioner of finance of that fact 
        and the commissioner of finance must order that the required 
        employer payment be deducted from the next subsequent payment or 
        payments of state education aid to the school district and be 
        transmitted to the teachers retirement association. 
           Sec. 3.  [SPECIAL SCHOOL DISTRICT NO. 1; QUALIFIED 
        PART-TIME TEACHER PROGRAM RETROACTIVE COVERAGE.] 
           (a) An eligible individual is a teacher who: 
           (1) was born on March 10, 1950; 
           (2) is a basic plan member of the Minneapolis teachers 
        retirement fund association; 
           (3) first became a Minneapolis teachers retirement fund 
        association member in August 1972; and 
           (4) entered into a job sharing arrangement with another 
        Minneapolis teachers retirement fund association member for the 
        2001-2002 school year but failed to enter into a qualified 
        part-time teacher agreement for that school year. 
           (b) Notwithstanding any provision of Minnesota Statutes, 
        section 354A.094, to the contrary, an eligible individual 
        described in paragraph (a) is authorized to receive full-time 
        salary and service credit in the Minneapolis teachers retirement 
        fund association basic program for service under Minnesota 
        Statutes, section 354A.094, for the 2001-2002 school year, if 
        all conditions required by this section are met. 
           (c) To receive the full-time equivalent service and salary 
        credit for the 2001-2002 school year provided by this section, 
        an eligible individual described in paragraph (a) must pay the 
        applicable employee contribution under Minnesota Statutes, 
        section 354A.12, subdivision 1, on the difference between the 
        amount of the person's compensation from which employee 
        contributions were actually deducted and the amount of the 
        person's full-time equivalent salary under Minnesota Statutes, 
        section 354A.094, subdivision 4.  The employee must pay 8.5 
        percent interest, compounded daily, on all employee 
        contributions required under this section, from the date the 
        contributions would have occurred if the individual were 
        employed on a full-time basis, until paid.  
           (d) If payment is made under paragraph (c), upon 
        notification from the Minneapolis teachers retirement fund 
        association, special school district No. 1, Minneapolis, must 
        pay the applicable employer and additional employer 
        contributions under Minnesota Statutes, section 354A.12, 
        subdivision 2a, on the difference between the person's full-time 
        equivalent salary and actual salary upon which contributions 
        were previously made for the eligible individual.  The employer 
        must pay 8.5 percent interest, compounded daily, on all employer 
        and employer additional contributions required under this 
        section, from the date the contributions would have occurred if 
        the individual were employed on a full-time basis, until paid. 
           (e) Payments under this section must be made in a lump sum 
        to the Minneapolis teachers retirement fund association.  
        Payment under paragraph (c) must occur on or before June 30, 
        2003, or the effective date of retirement, whichever is 
        earlier.  Payment by the employer under paragraph (d) must be 
        made within 30 days following payment by the eligible employee. 
           (f) The eligible person must provide any relevant 
        documentation that the Minneapolis teachers retirement fund 
        association may request. 

                                   ARTICLE 15 
                       VARIOUS ONE PERSON AND SMALL GROUP
                               RETIREMENT CHANGES 
           Section 1.  [TEACHERS RETIREMENT ASSOCIATION; COVERAGE 
        ELECTION OPTION DEADLINE EXTENSION.] 
           (a) Notwithstanding any provision of Minnesota Statutes, 
        section 354B.21, subdivision 2 or 3 to the contrary, an eligible 
        person described in paragraph (b) is entitled to elect to 
        continue retirement coverage by the teachers retirement 
        association. 
           (b) An eligible person is a person who: 
           (1) was born on May 5, 1960; 
           (2) was first employed as a teacher for the 1982-1983 
        school year; 
           (3) was employed as a teacher by independent school 
        district No. 345, New London-Spicer, from the 1984-1985 school 
        year until the 1994-1995 school year; 
           (4) was employed as a teacher by independent school 
        district No. 858, St. Charles, from the 1995-1996 school year 
        through the 2001-2002 school year; 
           (5) was employed by the Riverland community college on 
        August 22, 2002; and 
           (6) received a Minnesota state colleges and universities 
        system retirement plan election form on August 27, 2002, but did 
        not file the form by December 4, 2002, and received individual 
        retirement account retirement plan coverage by default. 
           (c) The election of teachers retirement coverage must be 
        made in writing by the eligible person and must be made on or 
        before September 1, 2003. 
           (d) If an election of teachers retirement association 
        coverage is made under this section, the Minnesota state 
        colleges and universities system shall transfer from the 
        individual retirement account plan member and employer 
        contributions equal to ten percent of the eligible person's 
        covered salary as an employee of the system from August 22, 
        2002, to the date of the coverage election under this section, 
        plus annual interest at the rate of 8.5 percent.  Upon the 
        contribution transfer, the teachers retirement association shall 
        credit the eligible person with allowable and formula service 
        credit for the period August 22, 2002, to the date of the 
        coverage election. 
           Sec. 2.  [DULUTH TEACHERS RETIREMENT FUND ASSOCIATION; 
        AUTHORIZATION TO MAKE PAYMENT OF EMPLOYEE AND EMPLOYER 
        CONTRIBUTIONS.] 
           (a) Notwithstanding any provision of law to the contrary, 
        an eligible person described in paragraph (b) is authorized to 
        pay employee and employer contributions to the Duluth teachers 
        retirement fund association for the period described in 
        paragraph (c). 
           (b) An eligible person is a person who: 
           (1) was born on October 13, 1949; 
           (2) was initially employed by independent school district 
        No. 709, Duluth, on December 4, 1972; 
           (3) is a current employee of independent school district 
        No. 709, Duluth, and is a current member of the Duluth teachers 
        retirement fund association; 
           (4) was employed on a part-time basis by independent school 
        district No. 709, Duluth, for the 2001-2002 school year; and 
           (5) was not notified of the right to pay employee and 
        employer contributions to the Duluth teachers retirement fund 
        association under Minnesota Statutes, section 354A.094, while 
        employed on a part-time basis for the 2001-2002 school year. 
           (c) The purchase period is September 4, 2001, to June 7, 
        2002. 
           (d) The payment amount shall be the product of the 
        following: 
           (1) the total of the employee and employer contribution 
        rates of the Duluth teachers retirement fund association 
        prescribed in Minnesota Statutes, section 354A.12; and 
           (2) the salary amount equal to the difference between the 
        salary the eligible person would have earned from independent 
        school district No. 709, Duluth, had the eligible person worked 
        on a full-time basis during the 2001-2002 school year and the 
        total salary the eligible person actually earned from 
        independent school district No. 709, Duluth, during the 
        2001-2002 school year. 
           (e) Interest is payable on the payment amount in paragraph 
        (d) using the preretirement interest rate assumption specified 
        in Minnesota Statutes, section 356.215, subdivision 8, 
        compounded annually, accruing from June 30, 2002, to the date 
        the payment is received in the office of the Duluth teachers 
        retirement fund association. 
           (f) Credit for the higher salary for the purchase period 
        must be granted by the Duluth teachers retirement fund 
        association to the eligible person upon receipt of payment of 
        the employee and employer contribution amount. 
           (g) Notwithstanding Minnesota Statutes, section 354A.094, 
        subdivision 4, independent school district No. 709, Duluth, is 
        not permitted to pay any portion of the payment amount. 
           (h) The authority to make payment of employee and employer 
        contributions expires 60 days after enactment or on the date of 
        the termination of active service by the eligible person, 
        whichever occurs earlier. 
           Sec. 3.  [SURVIVOR BENEFITS.] 
           Notwithstanding any provision of Minnesota Statutes, 
        section 353.657, subdivision 1, requiring a specified period of 
        marriage to obtain survivor benefits, the surviving spouse of a 
        firefighter who was born on March 11, 1969, and who died in an 
        accident on February 6, 2000, is entitled to survivor benefits 
        provided in Minnesota Statutes, section 353.657. 
           Sec. 4.  [MSRS-GENERAL; REFUND ELIGIBILITY IN CERTAIN 
        INSTANCES.] 
           Notwithstanding any provision of Minnesota Statutes, 
        section 352.22, subdivision 1, to the contrary, a person who 
        previously has been employed as a state employee, who was placed 
        on a medical leave of absence before April 1, 2002, and who was 
        still on the medical leave on April 1, 2003, is eligible to 
        receive a refund under Minnesota Statutes, section 352.22, if 
        the person has not again become a state employee covered by the 
        system on the refund application date. 
           Sec. 5.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION COVERAGE 
        TERMINATION.] 
           Subdivision 1.  [ELIGIBILITY.] (a) An eligible individual 
        specified in paragraph (b) is authorized to apply for a 
        retirement annuity, provided necessary age and service 
        requirements are met, under Minnesota Statutes, section 353.29 
        or 353.30, as applicable, as further specified under subdivision 
        2. 
           (b) An eligible individual is an individual who: 
           (1) was employed as a Beltrami county employee and became a 
        member of the public employees retirement association general 
        plan due to that service on June 1, 1991; 
           (2) was elected to the Bemidji city council and took office 
        in January 2001; 
           (3) elected under law then applicable to have public 
        employees retirement association general plan coverage for the 
        city council elected service; and 
           (4) terminated Beltrami county employment but is unable to 
        commence receipt of a public employees retirement association 
        general plan annuity because of the continuing public employees 
        retirement association general plan coverage for the elected 
        city council service. 
           Subd. 2.  [RETIREMENT ANNUITY.] (a) Notwithstanding an 
        irrevocable election to participate in the public employees 
        retirement association general plan as an elected official and 
        continuation of elected service, an eligible individual under 
        subdivision 1, paragraph (b), is deemed to have terminated 
        membership under Minnesota Statutes, section 353.01, subdivision 
        11b, following the termination of the Beltrami county employment.
           (b) If the requirements of paragraph (a) are satisfied, the 
        eligible individual may apply for a retirement annuity under 
        Minnesota Statutes, section 353.29 or 353.30, as applicable.  In 
        computing the annuity, the public employees retirement 
        association must exclude salary due to the elected Bemidji city 
        council service.  Deferred annuity augmentation under Minnesota 
        Statutes, section 353.71, applies to this annuity. 
           Subd. 3.  [TREATMENT OF BEMIDJI CITY COUNCIL CONTRIBUTIONS 
        TO THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION.] (a) All 
        employee contributions to the public employees retirement 
        association coordinated plan by an eligible individual in 
        subdivision 1, paragraph (b), due to the elected Bemidji city 
        council service, and all corresponding employer contributions, 
        must be determined. 
           (b) An eligible individual under subdivision 1, paragraph 
        (b), must elect, within one year of the effective date of this 
        section or upon termination of elective service, whichever is 
        earlier, a refund under Minnesota Statutes, section 353.34, 
        subdivision 2, of employee contributions determined under 
        paragraph (a), or coverage by the public employees defined 
        contribution plan under Minnesota Statutes, chapter 353D, as 
        further specified in paragraph (c). 
           (c) If public employee defined contribution plan coverage 
        is elected under paragraph (b), contributions to that plan 
        commence as of the first day of the pay period following this 
        election, and accumulated employee and employer contributions 
        determined under paragraph (a) must be transferred with six 
        percent annual interest to an account for the eligible 
        individual in the public employees defined contribution plan. 
           (d) If no election is made by an eligible individual by the 
        required date in paragraph (b), the individual is assumed to 
        have elected the refund indicated in paragraph (b). 
           (e) Upon an election under paragraph (b), or a mandatory 
        refund under paragraph (d), all rights in the public employees 
        retirement association coordinated plan due to elected Bemidji 
        city council service are forfeited and may not be reestablished. 
           Sec. 6.  [EFFECTIVE DATE.] 
           (a) Sections 1 to 5 are effective on the day following 
        final enactment. 
           (b) Section 3 applies retroactively to the surviving spouse 
        of a person who died on or after February 1, 2000. 
           Presented to the governor May 27, 2003 
           Signed by the governor May 30, 2003, 3:54 p.m.