ARTICLE 1

MINNESOTA STATE RETIREMENT SYSTEM

Section 1. Minnesota Statutes 2022, section 352B.08, subdivision 1, is amended to read:

Subdivision 1.

Eligibility; when to apply; accrual.

(a) Every member who is credited with three or more years of allowable service if first employed before July 1, 2013, or with at least ten years of allowable service if first employed after June 30, 2013, is entitled to separate from state service and upon becoming 50 years old, is entitled to receive a life annuity, upon separation from state service.

(b) Members must apply for an annuity in a form and manner prescribed by the executive director.

(c) No application may be made more than deleted text begin 90deleted text end new text begin 60new text end days before the date the member is eligible to retire by reason of both age and service requirements.

(d) An annuity begins to accrue no earlier than 180 days before the date the application is filed with the executive director.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2022, section 356.551, subdivision 2, is amended to read:

Subd. 2.

Determination.

(a) Unless the minimum purchase amount set forth in paragraph (c) applies, the prior service credit purchase amount is an amount equal to the actuarial present value, on the date of payment, as calculated by the chief administrative officer of the pension plan and reviewed by the actuary retained under section 356.214, of the amount of the additional retirement annuity obtained by the acquisition of the additional service credit in this section.

(b) Calculation of this amount must be made using the investment return assumption applicable to the public pension plan specified in section 356.215, subdivision 8, and the mortality table adopted for the public pension plan.

(1) Unless clause (2) applies, the calculation must assume continuous future service in the public pension plan until, and retirement at, the age at which the minimum requirements of the fund for normal retirement or retirement with an annuity unreduced for retirement at an early age, including section 356.30, are met with the additional service credit purchased. The calculation must also assume a full-time equivalent salary, or actual salary, whichever is greater, and a future salary history that includes annual salary increases at the applicable salary increase rate for the plan specified in section 356.215, subdivision 8.

(2) This clause applies when the calculation is being done for purposes of section 352.272; 352B.087; 353.0141, subdivision 3; 354.544; deleted text begin ordeleted text end 354A.0961new text begin ; or 490.1211, subdivision 2new text end . The calculation must include continuous future service in the public pension plan until, and retirement at, any age at or after which the minimum requirements of the fund for early retirement or retirement with an annuity unreduced for retirement at an early age, including section 356.30, are met with the additional service credit purchased. The calculation must be determined using the retirement age that provides the most valuable benefit to the member. The calculation must also assume a full-time equivalent salary, or actual salary, whichever is greater, and a future salary history that includes annual salary increases at the applicable salary increase rate for the plan specified in section 356.215, subdivision 8.

(c) The prior service credit purchase amount may not be less than the amount determined by applying, for each year or fraction of a year being purchased, the sum of the employee contribution rate, the employer contribution rate, and the additional employer contribution rate, if any, applicable during that period, to the person's annual salary during that period, or fractional portion of a year's salary, if applicable, plus interest at the applicable annual rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, whichever applies, compounded annually, from the end of the year in which contributions would otherwise have been made to the date on which the payment is received.

(d) Unless otherwise provided by statutes governing a specific plan, payment must be made in one lump sum within one year of the prior service credit authorization or prior to the member's effective date of retirement, whichever is earlier. Payment of the amount calculated under this section must be made by the applicable eligible person.

(e) However, the current employer or the prior employer may, at its discretion, pay all or any portion of the payment amount that exceeds an amount equal to the employee contribution rates in effect during the period or periods of prior service applied to the actual salary rates in effect during the period or periods of prior service, plus interest at the applicable annual rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, whichever applies, compounded annually, from the date on which the contributions would otherwise have been made to the date on which the payment is made. If the employer agrees to payments under this subdivision, the purchaser must make the employee payments required under this subdivision within 90 days of the prior service credit authorization. If that employee payment is made, the employer payment under this subdivision must be remitted to the chief administrative officer of the public pension plan within 60 days of receipt by the chief administrative officer of the employee payments specified under this subdivision.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2022, section 490.1211, is amended to read:

490.1211 UNIFORMED SERVICE.

new text begin Subdivision 1. new text end

new text begin Federal uniformed service protections. new text end

(a) A judge who is absent from employment by reason of service in the uniformed services, as defined in United States Code, title 38, section 4303(13), and who returns to state employment as a judge upon discharge from service in the uniformed service within the time frame required in United States Code, title 38, section 4312(e), may obtain service credit for the period of the uniformed service, provided that the judge did not separate from uniformed service with a dishonorable or bad conduct discharge or under other than honorable conditions.

(b) The judge may obtain credit by paying into the fund equivalent member contribution based on the contribution rate or rates in effect at the time that the uniformed service was performed multiplied by the full and fractional years being purchased and applied to the annual salary rate. The annual salary rate is the average annual salary during the purchase period that the judge would have received if the judge had continued to provide employment services to the state rather than to provide uniformed service, or if the determination of that rate is not reasonably certain, the annual salary rate is the judge's average salary rate during the 12-month period of judicial employment rendered immediately preceding the deleted text begin purchasedeleted text end periodnew text begin of the uniformed servicenew text end .

(c) The equivalent employer contribution and, if applicable, the equivalent employer additional contribution, must be paid by the employing unit, using the employer and employer additional contribution rate or rates in effect at the time that the uniformed service was performed, applied to the same annual salary rate or rates used to compute the equivalent member contribution.

(d) If the member equivalent contributions provided for in this section are not paid in full, the judge's allowable service credit must be prorated by multiplying the full and fractional number of years of uniformed service eligible for purchase by the ratio obtained by dividing the total member contributions received by the total member contributions otherwise required under this section.

(e) To receive allowable service credit under this section, the contributions specified in this section deleted text begin and section 490.121deleted text end must be transmitted to the fund during the period which begins with the date on which the individual returns to judicial employment and which has a duration of three times the length of the uniformed service period, but not to exceed five years. If the determined payment period is calculated to be less than deleted text begin one yeardeleted text end new text begin three yearsnew text end , the contributions required under this section to receive service credit deleted text begin maydeleted text end new text begin must new text end be new text begin transmitted to the fund new text end within deleted text begin one yeardeleted text end new text begin three yearsnew text end from the discharge date.

(f) The amount of allowable service credit obtainable under this section and section 490.121 may not exceed five years, unless a longer purchase period is required under United States Code, title 38, section 4312.

(g) The state court administrator shall pay interest on all equivalent member and employer contribution amounts payable under this section. Interest must be at the applicable annual rate or rates specified in section 356.59, subdivision 2, compounded annually, from the end of each fiscal year of the leave or break in service to the end of the month in which payment is received.

new text begin Subd. 2. new text end

new text begin State-authorized purchase of service credit for periods of military service. new text end

new text begin (a) Unless prohibited under paragraph (b), a judge is eligible to purchase service credit, not to exceed five cumulative years of service credit, for one or more periods of service in the uniformed services, as defined in United States Code, title 38, section 4303(13), if: new text end

new text begin (1) the judge has at least three years of service credit with the judges retirement plan under this chapter; new text end

new text begin (2) the duration of the judge's current period of employment is at least six months; and new text end

new text begin (3) the judge did not obtain service credit for a period of military service under subdivision 1. new text end

new text begin (b) A service credit purchase is prohibited if: new text end

new text begin (1) the judge separated from uniformed service with a dishonorable or bad conduct discharge or under other than honorable conditions; new text end

new text begin (2) the judge has purchased or otherwise received service credit from any Minnesota public employee pension plan for the same period of service in the uniformed services; or new text end

new text begin (3) the judge's service in the uniformed services occurred before the judge was first appointed or elected as a judge. new text end

new text begin (c) When purchasing a period of service, if the period of service in the uniformed services is one year or less, the judge must purchase the full period of service. If the period of service in the uniformed services is longer than one year, the judge may purchase the full period, not to exceed five cumulative years, or may purchase a portion of the period of service. If the judge purchases a portion of the period of service in the uniformed services, the portion must: (1) not be less than one year; and (2) be in increments of six months of service. new text end

new text begin Subd. 3. new text end

new text begin Application and documentation. new text end

new text begin To purchase service credit under subdivision 2, a judge must apply to the executive director of the Minnesota State Retirement System to make the purchase. The application must include all necessary documentation of the judge's qualifications to make the purchase, signed written permission to allow the executive director to request and receive necessary verification of applicable facts and eligibility requirements, and any other relevant information that the executive director may require. new text end

new text begin Subd. 4. new text end

new text begin Purchase payment amount; service credit grant. new text end

new text begin (a) The purchase payment amount for a purchase under subdivision 2 is the amount determined under section 356.551 for the period or periods of service requested, except that, for purposes of calculating the purchase payment amount to purchase service credit for service in the uniformed services between periods of employment as a judge, section 356.551, subdivision 2, paragraph (c), does not apply. new text end

new text begin (b) Service credit must be granted by the judges retirement plan to the purchasing judge upon the executive director's receipt of the purchase payment amount. The service credit purchased under this section may not be used for the purpose of determining a disability benefit under section 490.124, subdivision 4. new text end

new text begin (c) Payment must be made before the effective date of the judge's retirement. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2022, section 490.124, subdivision 10, new text end new text begin is repealed. new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
ADMINISTRATIVE PROVISIONS

Section 1. Minnesota Statutes 2022, section 353.01, subdivision 2a, is amended to read:

Subd. 2a.

Included employees; mandatory membership.

(a) Public employees whose deleted text begin annualdeleted text end salary from one governmental subdivision deleted text begin is stipulated in advance to exceed $5,100 if the person is not a school year employee or $3,800 if the person is a school year employeedeleted text end new text begin exceeds $425 in any month new text end and who are not specifically excluded under subdivision 2b or deleted text begin whodeleted text end have not been provided an option to participate under subdivision 2d, whether individually or by action of the governmental subdivision, must participate as members of the association with retirement coverage by the general employees retirement plan under this chapter, the public employees police and fire deleted text begin retirementdeleted text end plan under this chapter, or the local government correctional employees retirement plan under chapter 353E, whichever applies. Membership commences as a condition of deleted text begin theirdeleted text end employment on the first day of deleted text begin theirdeleted text end employment or on the first day that the eligibility criteria are met, whichever is later. Public employees include but are not limited to:

(1) persons whose salary meets the threshold in this paragraph from employment in one or more positions within one governmental subdivision;

(2) elected county sheriffs;

(3) persons who are appointed, employed, or contracted to perform governmental functions that by law or local ordinance are required of a public officer, including, but not limited to:

(i) town and city clerk or treasurer;

(ii) county auditor, treasurer, or recorder;

(iii) city manager as defined in section 353.028 who does not exercise the option provided under subdivision 2d; or

(iv) emergency management director, as provided under section 12.25;

(4) physicians under section 353D.01, subdivision 2, who do not elect public employees defined contribution plan coverage under section 353D.02, subdivision 2;

(5) full-time employees of the Dakota County Agricultural Society;

(6) employees of the Red Wing Port Authority who were first employed by the Red Wing Port Authority before May 1, 2011, and who are not excluded employees under subdivision 2b;

(7) employees of the Seaway Port Authority of Duluth who are not excluded employees under subdivision 2b;

(8) employees of the Stevens County Housing and Redevelopment Authority who were first employed by the Stevens County Housing and Redevelopment Authority before May 1, 2014, and who are not excluded employees under subdivision 2b;

(9) employees of the Minnesota River Area Agency on Aging who were first employed by a Regional Development Commission before January 1, 2016, and who are not excluded employees under subdivision 2b; and

(10) employees of the Public Employees Retirement Association.

(b) A public employee or elected official who was a member of the association on June 30, 2002, based on employment that qualified for membership coverage by the public employees retirement plan or the public employees police and fire plan under this chapter, or the local government correctional employees retirement plan under chapter 353E as of June 30, 2002, retains that membership for the duration of the person's employment in that position or incumbency in elected office. Except as provided in subdivision 28, the person shall participate as a member until the employee or elected official terminates public employment under subdivision 11a or terminates membership under subdivision 11b.

(c) If deleted text begin in any subsequent yeardeleted text end the deleted text begin annualdeleted text end salary of an included public employee is less than deleted text begin the minimum salary threshold specified in this subdivisiondeleted text end new text begin $425 in any subsequent monthnew text end , the member retains membership eligibility.

(d) For the purpose of participation in the general employees retirement plan, public employees include employees who were members of the former Minneapolis Employees Retirement Fund on June 29, 2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

Sec. 2.

Minnesota Statutes 2022, section 353.01, subdivision 2b, is amended to read:

Subd. 2b.

Excluded employees.

(a) The following public employees are not eligible to participate as members of the association with retirement coverage by the general employees retirement plan, the local government correctional employees retirement plan under chapter 353E, or the public employees police and fire deleted text begin retirementdeleted text end plan:

(1) persons whose deleted text begin annualdeleted text end salary from one governmental subdivision never exceeds deleted text begin an amount, stipulated in writing in advance, of $5,100 if the person is not a school district employee or $3,800 if the person is a school year employee. If annual compensation from one governmental subdivision to an employee exceeds the stipulated amount in a calendar year or a school year, whichever applies, after being stipulated in advance not to exceed the applicable amount, the stipulation is no longer valid and contributions must be made on behalf of the employee under section 353.27, subdivision 12, from the first month in which the employee received salary exceedingdeleted text end $425 in a month;

(2) public officers who are elected to a governing body, city mayors, or persons who are appointed to fill a vacancy in an elected office of a governing body, whose term of office commences on or after July 1, 2002, for the service to be rendered in that elected position;

(3) election judges and persons employed solely to administer elections;

(4) patient and inmate personnel who perform services for a governmental subdivision;

(5) except as otherwise specified in subdivision 12a, employees who are employed solely in a temporary position as defined under subdivision 12a, and employees who resign from a nontemporary position and accept a temporary position within 30 days of that resignation in the same governmental subdivision;

(6) employees who are employed by reason of work emergency caused by fire, flood, storm, or similar disaster, but if the person becomes a probationary or provisional employee within the same pay period, other than on a temporary basis, the person is a "public employee" retroactively to the beginning of the pay period;

(7) employees who by virtue of their employment in one governmental subdivision are required by law to be a member of and to contribute to any of the plans or funds administered by the Minnesota State Retirement System, the Teachers Retirement Association, or the St. Paul Teachers Retirement Fund Association, but this exclusion must not be construed to prevent a person from being a member of and contributing to the Public Employees Retirement Association and also belonging to and contributing to another public pension plan or fund for other service occurring during the same period of time, and a person who meets the definition of "public employee" in subdivision 2 by virtue of other service occurring during the same period of time becomes a member of the association unless contributions are made to another public retirement plan on the salary based on the other service or to the Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;

(8) persons who are members of a religious order and are excluded from coverage under the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no irrevocable election of coverage has been made under section 3121(r) of the Internal Revenue Code of 1954, as amended;

(9) persons who are:

(i) employed by a governmental subdivision who have not reached the age of 23 and who are enrolled on a full-time basis to attend or are attending classes on a full-time basis at an accredited school, college, or university in an undergraduate, graduate, or professional-technical program, or at a public or charter high school;

(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist interns and are serving in a degree or residency program in a public hospital or in a public clinic; or

(iii) students who are serving for a period not to exceed five years in an internship or a residency program that is sponsored by a governmental subdivision, including an accredited educational institution;

(10) persons who hold a part-time adult supplementary technical college license who render part-time teaching service in a technical college;

(11) for the first three years of employment, foreign citizens who are employed by a governmental subdivision, except that the following foreign citizens must be considered included employees under subdivision 2a:

(i) H-1B, H-1B1, and E-3 status holders;

(ii) employees of Hennepin County or Hennepin Healthcare System, Inc.;

(iii) employees legally authorized to work in the United States for three years or more; and

(iv) employees otherwise required to participate under federal law;

(12) public hospital employees who elected not to participate as members of the association before 1972 and who did not elect to participate from July 1, 1988, to October 1, 1988;

(13) except as provided in section 353.86, volunteer ambulance service personnel, as defined in subdivision 35, but persons who serve as volunteer ambulance service personnel may still qualify as public employees under subdivision 2 and may be members of the Public Employees Retirement Association and participants in the general employees retirement plan or the public employees police and fire plan, whichever applies, on the basis of compensation received from public employment service other than service as volunteer ambulance service personnel;

(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties, but a person who is a volunteer firefighter may still qualify as a public employee under subdivision 2 and may be a member of the Public Employees Retirement Association and a participant in the general employees retirement plan or the public employees police and fire plan, whichever applies, on the basis of compensation received from public employment activities other than those as a volunteer firefighter;

(15) employees in the building and construction trades, as follows:

(i) pipefitters and associated trades personnel employed by Independent School District No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section 12;

(ii) electrical workers, plumbers, carpenters, and associated trades personnel employed by Independent School District No. 625, St. Paul, or the city of St. Paul, with coverage under a collective bargaining agreement by the electrical workers local 110 pension plan, the plumbers local 34 pension plan, or the carpenters local 322 pension plan who were either first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000, chapter 461, article 7, section 5;

(iii) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, allied tradesworkers, and plasterers employed by the city of St. Paul or Independent School District No. 625, St. Paul, with coverage under a collective bargaining agreement by the bricklayers and allied craftworkers local 1 pension plan, the cement masons local 633 pension plan, the glaziers and glassworkers local 1324 pension plan, the painters and allied trades local 61 pension plan, or the plasterers local 265 pension plan who were either first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;

(iv) plumbers employed by the Metropolitan Airports Commission, with coverage under a collective bargaining agreement by the plumbers local 34 pension plan, who were either first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;

(v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation Board, with coverage under a collective bargaining agreement by the electrical workers local 292 pension plan or the pipefitters local 539 pension plan, who were first employed before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11, section 5;

(vi) laborers and associated trades personnel employed by the city of St. Paul or Independent School District No. 625, St. Paul, who are designated as temporary employees with coverage under a collective bargaining agreement by a multiemployer plan as defined in section 356.27, subdivision 1, who were either first employed on or after June 1, 2018, or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter 211, article 16, section 13; and

(vii) employees who are trades employees as defined in section 356.27, subdivision 1, first hired on or after July 1, 2020, by the city of St. Paul or Independent School District No. 625, St. Paul, except for any trades employee for whom contributions are made under section 356.24, subdivision 1, clause (8), (9), or (10), by either employer to a multiemployer plan as defined in section 356.27, subdivision 1;

(16) employees who are hired after June 30, 2002, solely to fill seasonal positions under subdivision 12b which are limited in duration by the employer to a period of six months or less in each year of employment with the governmental subdivision;

(17) persons who are provided supported employment or work-study positions by a governmental subdivision and who participate in an employment or industries program maintained for the benefit of these persons where the governmental subdivision limits the position's duration to up to five years, including persons participating in a federal or state subsidized on-the-job training, work experience, senior citizen, youth, or unemployment relief program where the training or work experience is not provided as a part of, or for, future permanent public employment;

(18) independent contractors and the employees of independent contractors;

(19) reemployed annuitants of the association during the course of that reemployment;

(20) persons appointed to serve on a board or commission of a governmental subdivision or an instrumentality thereof;

(21) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan Transit Commission who are members of the International Brotherhood of Teamsters Local 638 and who are, by virtue of that employment, members of the International Brotherhood of Teamsters Central States pension plan; and

(22) persons employed by the Duluth Transit Authority or any subdivision thereof who are members of the Teamsters General Local Union 346 and who are, by virtue of that employment, members of the Central States Southeast and Southwest Areas Pension Fund.

(b) Any person performing the duties of a public officer in a position defined in subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an employee of an independent contractor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

Sec. 3.

Minnesota Statutes 2022, section 353.01, subdivision 15, is amended to read:

Subd. 15.

Dependent child.

For the purpose of survivor benefit eligibility deleted text begin under sections 353.31, subdivision 1, and 353.657, subdivision 3deleted text end , "dependent child" meansnew text begin :new text end

new text begin (1)new text end a biological or adopted child of a deceased member who is unmarrieddeleted text begin ,deleted text end and deleted text begin underdeleted text end new text begin has not reached new text end the age of deleted text begin 18, or age 18 todeleted text end 23deleted text begin , so long as the child submits evidence of full-time enrollment in an accredited educational institution. "Dependent child" also includesdeleted text end new text begin ;new text end

new text begin (2)new text end a child of the member conceived during the member's lifetime and born after the member's deathdeleted text begin . It also meansdeleted text end new text begin , unless a parent-child relationship does not exist under section 524.2-120, subdivision 10; andnew text end

new text begin (3)new text end a deleted text begin dependentdeleted text end child who new text begin has not reached the age of 23 and new text end is the subject of adoption proceedings filed by a memberdeleted text begin ,deleted text end and whonew text begin ,new text end within two years after death of the member, by judgment and decree duly entered, is adjudged to be the adopted child of the deceased memberdeleted text begin ; subject, however, to the qualifying conditions of age and dependency under this subdivisiondeleted text end . The deleted text begin dependency of thedeleted text end child deleted text begin dates fromdeleted text end new text begin is a dependent child effective on the date of new text end the decree of adoption. deleted text begin "Dependent child" also includes a child age 18 to 23 who had submitted evidence of full-time enrollment in an accredited educational institution but was determined to be medically unable to continue school on a full-time basis. The board of trustees shall adopt written procedures to make determinations regarding eligibility based on a student being medically unable to continue school, and may not continue a benefit for medical reasons for a period greater than one year.deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

Sec. 4.

Minnesota Statutes 2022, section 353.0162, is amended to read:

353.0162 SALARY CREDIT PURCHASE FOR PERIODS OF REDUCED SALARY.

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms defined in this subdivision have the meanings given them, unless the context clearly indicates another meaning is intended. new text end

new text begin (b) "Differential salary credit" is the difference between the salary received by the member during a period of reduced salary as described in subdivision 2 and the salary of the member, excluding overtime, on which contributions to the applicable plan would have been made during the period based on the member's normal employment period, measured in hours or otherwise, as applicable, and rate of pay. new text end

new text begin (c) "Reporting period" means a school year, for school year employees, or a calendar year, for all other employees, during which a member has a period of reduced salary. new text end

new text begin Subd. 2. new text end

new text begin Salary credit purchase permitted. new text end

deleted text begin (a)deleted text end A member may purchase differential salary credit deleted text begin as described in paragraph (c)deleted text end for a period of reduced salary deleted text begin as described in paragraph (b)deleted text end .

deleted text begin (b)deleted text end The period of reduced salary must be a period occurring entirely within one school year, for school year employees, or one calendar year, for all other employees, during which the member receives no salary or a reduced salary from the employer while the member is:

(1) receiving workers' compensation payments related to the member's service to the public employer;

(2) on an authorized leave of absence;

(3) on an authorized leave of absence as a result of a budgetary or salary savings program offered or mandated by a governmental subdivision, if certified to the executive director by the governmental subdivision; or

(4) on a periodic, repetitive leave that is offered to all employees of a governmental subdivision where the leave program is certified by the employer to the association as one that does not exceed 208 hours during the school year or calendar year, as applicable.

deleted text begin (c) Differential salary credit is the difference between the salary received by the member during a period of reduced salary specified in paragraph (b) and the salary of the member, excluding overtime, on which contributions to the applicable plan would have been made during the period based on the member's normal employment period, measured in hours or otherwise, as applicable, and rate of pay. deleted text end

new text begin Subd. 3. new text end

new text begin Payment amount. new text end

deleted text begin (d)deleted text end new text begin (a) new text end To receive differential salary credit, the member shall pay the plan, by delivering payment to the executive director, an amount equal to:

(1) the applicable employee contribution rate under section 353.27, subdivision 2; 353.65, subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the differential salary amount;

(2) plus an employer equivalent payment equal to the applicable employer contribution rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, subdivision 2, as applicable, multiplied by the differential salary amount;

(3) plus, if applicable, an equivalent employer additional amount equal to the additional employer contribution rate in section 353.27, subdivision 3a, multiplied by the differential salary amount.

deleted text begin (e)deleted text end new text begin (b) new text end The employer, by appropriate action of its governing body and documented in its official records, may pay on behalf of the member the amounts determined under paragraph deleted text begin (d)deleted text end new text begin (a)new text end , clauses (2) and (3), as applicable, plus interest under paragraph deleted text begin (f)deleted text end new text begin (c)new text end . However, if the period of reduced salary is a periodic, repetitive leave under deleted text begin paragraph (b)deleted text end new text begin subdivision 2new text end , clause (4), then the employer must pay on behalf of the member the amount determined under paragraph deleted text begin (d)deleted text end new text begin (a)new text end , clauses (2) and (3), as applicable, plus interest under paragraph deleted text begin (f)deleted text end new text begin (c)new text end .

deleted text begin (f)deleted text end new text begin (c)new text end Payment under this section must include interest on the contribution amount or amounts, whichever applies, at the applicable rate or rates specified in section 356.59, subdivision 3, compounded annually, prorated for the number of months, if less than 12 months, from the end of the school year or calendar year, as applicable, until full payment is received by the executive director.

new text begin Subd. 4. new text end

new text begin Timing of required payment. new text end

Payment under this section must be completed deleted text begin by the earliest of: (1) six months after termination of public service by the employee under section 353.01, subdivision 11a; (2)deleted text end new text begin no later than new text end one year after the deleted text begin terminationdeleted text end new text begin end new text end of deleted text begin thedeleted text end new text begin each reporting new text end period deleted text begin of reduced salary specified in paragraph (b); or(3) six months after the commencement of a disability benefitdeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

Sec. 5.

Minnesota Statutes 2022, section 353.031, subdivision 10, is amended to read:

Subd. 10.

Restoring forfeited service and salary credit.

deleted text begin (a)deleted text end To restore forfeited service and salary credit, a repayment of a refund must be made within six months after the effective date of disability benefits or within six months after the date of the filing of the disability application, whichever is laterdeleted text begin .deleted text end

deleted text begin (b)deleted text end new text begin ,new text end except deleted text begin fordeleted text end new text begin that new text end the salary credit purchase new text begin for periods of reduced salary must be made as new text end authorized under section 353.0162deleted text begin , paragraph (b), clause (1), no purchase of prior service or payment made in lieu of salary deductions otherwise authorized under section 353.01 or 353.0162 may be made after the occurrence of the disability for which an application is filed under this sectiondeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

Sec. 6.

Minnesota Statutes 2022, section 353.32, subdivision 1c, is amended to read:

Subd. 1c.

Dependent child survivor coverage.

If deleted text begin there isdeleted text end new text begin a deceased member has new text end no surviving spouse eligible for benefits under subdivision 1a, deleted text begin adeleted text end new text begin the member's new text end dependent child deleted text begin or childrendeleted text end as defined in section 353.01, subdivision deleted text begin 15adeleted text end new text begin 15new text end , is eligible for monthly payments. Payments to a dependent child must be paid from the date of the member's death to the date the dependent child attains age deleted text begin 20 if the child is under age 15. If the child is 15 years or older on the date of death, payment must be made for five yearsdeleted text end new text begin 23new text end . The payment to a dependent child is an amount actuarially equivalent to the value of a 100 percent optional annuity under subdivision 1a using the age of the member and new text begin the new text end age of the dependent child at the date of new text begin the member's new text end death in lieu of the age of the surviving spouse. If there is more than one dependent child, each dependent child deleted text begin shalldeleted text end new text begin must new text end receive a proportionate share of the actuarial value of the deleted text begin employee's accountdeleted text end new text begin 100 percent optional annuitynew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

Sec. 7.

Minnesota Statutes 2022, section 353E.001, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Fund. new text end

new text begin "Fund" means the public employees local government correctional service retirement fund. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

Sec. 8.

Minnesota Statutes 2022, section 353E.001, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Member. new text end

new text begin "Member" means an individual identified as a member under section 353E.02, for whom retirement coverage is provided by the plan. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

Sec. 9.

Minnesota Statutes 2022, section 353E.001, is amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Plan. new text end

new text begin "Plan" means the public employees local government correctional service retirement plan. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

Sec. 10.

Minnesota Statutes 2022, section 353E.07, subdivision 3, is amended to read:

Subd. 3.

Election; accrual.

A surviving spouse election under subdivisions 1 and 2 may be made at any time after the date of death of deleted text begin the local government correctional service employeedeleted text end new text begin a membernew text end . The surviving spouse benefit begins to accrue as of the first of the next month following the date on which the application for the benefit was filed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

Sec. 11.

Minnesota Statutes 2022, section 353E.07, subdivision 4, is amended to read:

Subd. 4.

Surviving spouse coverage; term certain.

In lieu of the 100 percent optional annuity under subdivision 1, the surviving spouse of a deceased deleted text begin local government correctional service employeedeleted text end new text begin member new text end may elect to receive survivor coverage in a term certain of ten, 15, or 20 years. The monthly term certain annuity must be actuarially equivalent to the 100 percent optional annuity under subdivision 1 and must be based on tables approved by the actuary retained under section 356.214. The optional annuity ceases upon the expiration of the term certain period. If a survivor elects a term certain annuity and dies before the expiration of the specified term certain period, the commuted value of the remaining annuity payments must be paid in a lump sum to the survivor's estate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

Sec. 12.

Minnesota Statutes 2022, section 353E.07, subdivision 5, is amended to read:

Subd. 5.

Dependent child survivor coverage.

If deleted text begin there isdeleted text end new text begin a deceased member has new text end no surviving spouse eligible for benefits under subdivisions 1, 2, and 4, deleted text begin adeleted text end new text begin the member's new text end dependent child as defined in section 353.01, subdivision deleted text begin 15adeleted text end new text begin 15new text end , is eligible for a deleted text begin dependent childdeleted text end survivor benefit. Benefits to a dependent child must be paid from the date of the employee's death to the date the dependent child attains age deleted text begin 20 if the child is under age 15 on the date of death. If the child is 15 years or older on the date of death, the benefit is payable for five yearsdeleted text end new text begin 23new text end . The payment to a dependent child is an amount actuarially equivalent to the value of a 100 percent joint and survivor optional annuity using the age of the deleted text begin employeedeleted text end new text begin member new text end and new text begin the new text end age of the dependent child at the date of new text begin the member's new text end death in lieu of the age of the surviving spouse. If there is more than one dependent child, each dependent child deleted text begin shalldeleted text end new text begin must new text end receive a proportionate share of the actuarial value of the deleted text begin employee's accountdeleted text end new text begin 100 percent joint and survivor optional annuitynew text end , with the amount of the benefit payable to each child to be determined based on the portion of the total eligibility period that each child is eligible. The process for calculating the deleted text begin dependent childdeleted text end survivor benefit must be approved by the actuary retained under section 356.214.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

Sec. 13.

new text begin REVISOR INSTRUCTION. new text end

new text begin In Minnesota Statutes, sections 353E.01 to 353E.08, the revisor of statutes shall change the terms "public employees local government correctional service retirement fund" to "fund" and "an employee covered under section 353E.02" to "member" and "local government correctional employee" to "member" and "public employees local government correctional service retirement plan" to "plan" wherever the terms appear in statutes. The revisor shall make any necessary grammatical changes or changes to sentence structure necessary to preserve the meaning of the text as a result of the changes. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

Sec. 14.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2022, section 353.01, subdivision 15a, new text end new text begin is repealed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023. new text end

ARTICLE 3

PUBLIC EMPLOYEES DEFINED CONTRIBUTION PLAN

Section 1. Minnesota Statutes 2022, section 353D.01, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin Unless the context clearly indicates that a different meaning is intended, the terms defined in this subdivision, for the purposes of this chapter, have the meanings given: new text end

new text begin (1) "association" means the public employees retirement association; and new text end

new text begin (2) "plan" means the public employees defined contribution plan. new text end

Sec. 2.

Minnesota Statutes 2022, section 353D.01, subdivision 2, is amended to read:

Subd. 2.

Eligibility.

(a) Eligibility to participate in the deleted text begin defined contributiondeleted text end plan is available to:

(1) new text begin any new text end elected new text begin or appointed new text end local government deleted text begin officialsdeleted text end new text begin officialnew text end of a governmental subdivision who deleted text begin electdeleted text end new text begin elects new text end to participate in the plan under section 353D.02, subdivision 1, and who, for the deleted text begin electeddeleted text end service rendered to a governmental subdivision, deleted text begin aredeleted text end new text begin is new text end not deleted text begin membersdeleted text end new text begin a member new text end of the deleted text begin Public Employees Retirementdeleted text end 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 who are employed by any public ambulance service that elects to participate under section 353D.02, subdivision 3;

(4) members of a municipal rescue squad associated with the city of 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;

(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 deleted text begin Public Employees Retirementdeleted text end association under section 353.01, subdivision 7;

(6) city managers who elected to be excluded from the general employees retirement plan of the deleted text begin Public Employees Retirementdeleted text end association under section 353.028 and who elected to participate in the public employees defined contribution plan under section 353.028, subdivision 3, paragraph (b);

(7) volunteer or emergency on-call firefighters serving in a municipal fire department or an independent nonprofit firefighting corporation who are not covered by the deleted text begin public employeesdeleted text end police and fire retirement plan and who are not covered by a volunteer firefighters relief association and who elect to participate in the public employees defined contribution plan;

(8) elected county sheriffs who are former members of the police and fire plan and who are receiving a retirement annuity as provided under section 353.651; and

(9) persons deleted text begin who are excluded from membership under section 353.01, subdivision 2b, paragraph (a), clause (23)deleted text end new text begin appointed to serve on a board or commission of a governmental subdivision or an instrumentality thereofnew text end .

deleted text begin (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 who must be a member of the police and fire plan as provided under chapter 353. deleted text end

deleted text begin (c)deleted text end new text begin (b) new text end 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.

deleted text begin (d)deleted text end new text begin (c) new text end 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. 3.

Minnesota Statutes 2022, section 353D.02, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Electeddeleted text end Local government officials.

Eligible elected new text begin or appointed new text end local government officials may elect to participate in the defined contribution plan after being elected or appointed to deleted text begin electivedeleted text end public office by filing a membership application on a form prescribed by the executive director of the association authorizing contributions to be deducted from the deleted text begin electeddeleted text end official'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 contributions are received in the office of the association, whichever is received first, provided further that 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 revocable during incumbency.

Sec. 4.

Minnesota Statutes 2022, section 353D.03, subdivision 1, is amended to read:

Subdivision 1.

Contributions for eligible participants.

(a) The following classes of eligible participants who elect to participate in the public employees defined contribution plan under section 353D.02 shall contribute an amount equal to five percent of salary as defined in section 353.01, subdivision 10:

(1) deleted text begin electeddeleted text end local government officials;

(2) physicians; and

(3) persons who are excluded from membership under section 353.01, subdivision 2b, paragraph (a), clause (23).

(b) A participant's governmental subdivision shall contribute a matching amount.

Sec. 5.

new text begin REINSTATEMENT OF APPOINTED OFFICIALS; RESUMPTION OF CONTRIBUTIONS. new text end

new text begin Subdivision 1. new text end

new text begin Reinstatement of appointed officials, election not to participate, and make-up contributions. new text end

new text begin (a) Any local government official whose participation in the public employees defined contribution plan under Minnesota Statutes, chapter 353D, ceased on or after January 1, 2020, and before the effective date of this section because the official's position changed from an elected position to an appointed position, may participate in the plan upon the effective date of this section by providing notice to the governing body of the local government no later than 30 days after the effective date of this section. new text end

new text begin (b) For any official who elects to participate under paragraph (a): new text end

new text begin (1) the local government must contribute, no later than 60 days after the effective date of this section, the matching amount that the local government would have contributed under Minnesota Statutes, section 353D.03, subdivision 1, paragraph (b), for the period during which the official's participation ceased; and new text end

new text begin (2) the official may contribute, no later than 60 days after the effective date of this section, any amount the official elects, but not to exceed the amount that the official would have contributed under Minnesota Statutes, section 353D.03, subdivision 1, paragraph (a), for the period during which the official's participation ceased. new text end

new text begin Subd. 2. new text end

new text begin Resumption of contributions by and for appointed officials. new text end

new text begin Contributions required under Minnesota Statutes, section 353D.03, subdivision 1, must be made by the local government official and the local government beginning with the first full pay period following the effective date of this section for any official who resumes participation under subdivision 1, paragraph (a). new text end

Sec. 6.

new text begin EFFECTIVE DATE. new text end

new text begin Sections 1 to 5 are effective the day following final enactment. new text end

ARTICLE 4

PERA SERVICE CREDIT FOR TWO METROPOLITAN AIRPORT POLICE OFFICERS

Section 1.

new text begin TRANSFER OF PAST PERA GENERAL PLAN SERVICE CREDIT TO THE POLICE AND FIRE PLAN. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Executive director" means the executive director of the Public Employees Retirement Association. new text end

new text begin (c) "General plan" means the general employees retirement plan of the Public Employees Retirement Association. new text end

new text begin (d) "Police and fire plan" means the police and fire retirement plan of the Public Employees Retirement Association. new text end

new text begin (e) "Service credit" means time credited as allowable service under Minnesota Statutes, section 353.01, subdivision 16, and credit for salary earned during that time. new text end

new text begin (f) "Transfer period" means the period beginning May 2, 2005, and ending October 28, 2005. new text end

new text begin Subd. 2. new text end

new text begin Authorization. new text end

new text begin Notwithstanding any state law to the contrary, an eligible person described in subdivision 3 who makes a payment to the police and fire retirement fund, as permitted under subdivision 4, on or before one year following the effective date of this section is entitled to have: new text end

new text begin (1) the employer payment made on the eligible person's behalf under subdivision 5; and new text end

new text begin (2) applicable past service credit transferred from the general plan to the police and fire plan for the transfer period under subdivision 6. new text end

new text begin Subd. 3. new text end

new text begin Eligible person. new text end

new text begin (a) An eligible person is a person described in paragraph (b) or (c). new text end

new text begin (b) An eligible person is a person who: new text end

new text begin (1) was born on July 2, 1982; new text end

new text begin (2) was hired as a full-time police officer by the Metropolitan Airports Commission on May 2, 2005; and new text end

new text begin (3) was erroneously credited with allowable service in the general plan instead of the police and fire plan for the period beginning May 2, 2005, and ending October 28, 2005. new text end

new text begin (c) An eligible person is a person who: new text end

new text begin (1) was born on April 18, 1982; new text end

new text begin (2) was hired as a full-time police officer by the Metropolitan Airports Commission on May 2, 2005; and new text end

new text begin (3) was erroneously credited with allowable service in the general plan instead of the police and fire plan for the period beginning May 2, 2005, and ending October 28, 2005. new text end

new text begin Subd. 4. new text end

new text begin Payment by eligible person. new text end

new text begin (a) An eligible person may pay to the executive director the difference between the employee contribution rate for the general plan and the employee contribution rate for the police and fire plan for the transfer period. The difference between the two rates must be applied to the eligible person's salary at the time that each contribution would have been deducted from pay if the eligible person had been covered by the police and fire plan for the transfer period. The payment must include interest at the applicable annual interest rate or rates that applied for each period listed in Minnesota Statutes, section 354.49, subdivision 2, calculated from the date that each contribution would have been deducted to the date that payment is made. new text end

new text begin (b) The payment under paragraph (a) must be made in a lump sum no later than one year following the effective date. Upon receipt of payment, the executive director must notify the Metropolitan Airports Commission that the payment was made and of the amount owed under subdivision 5. new text end

new text begin Subd. 5. new text end

new text begin Payment by the Metropolitan Airports Commission. new text end

new text begin If an eligible person makes the payment under subdivision 4, the Metropolitan Airports Commission, on behalf of the eligible person, must pay to the Public Employees Retirement Association the actuarial present value of the additional benefit resulting from the transferred service credit less the payment made under subdivision 4. This amount must be paid by the department in a lump sum within 30 days after the date on which the executive director notifies the Metropolitan Airports Commission under subdivision 4. new text end

new text begin Subd. 6. new text end

new text begin Transfer of assets and service credit. new text end

new text begin (a) If the payments under subdivisions 4 and 5 are made, the executive director must transfer assets from the general employees retirement fund to the police and fire retirement fund in an amount equal to the actuarial present value of the benefits earned by the eligible person under the general plan during the transfer period. The transfer of assets must be made within 15 days after receipt of the payments under subdivisions 4 and 5. new text end

new text begin (b) Upon transfer of the assets under paragraph (a), the eligible person shall have service credit in the police and fire plan and no service credit in the general plan for the transfer period. new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 5

TEACHERS RETIREMENT ASSOCIATION

Section 1. Minnesota Statutes 2022, section 354.06, subdivision 2, is amended to read:

Subd. 2.

President; executive director.

The board deleted text begin shalldeleted text end new text begin mustnew text end annually elect one of its members as president. It deleted text begin shalldeleted text end new text begin mustnew text end elect an executive director. Notwithstanding any law to the contrary, the board must set the salary of the executive director. The salary of the executive director must not exceed the limit for a position listed in section 15A.0815, subdivision 2. The executive director shall serve deleted text begin duringdeleted text end new text begin at new text end the pleasure of the board and be the executive officer of the board, with deleted text begin suchdeleted text end new text begin the duties prescribed in subdivision 2a and any additional new text end duties deleted text begin asdeleted text end new text begin thatnew text end the board deleted text begin shalldeleted text end new text begin may new text end prescribe. The board deleted text begin shalldeleted text end new text begin mustnew text end employ all other clerks and employees necessary to properly administer the association. deleted text begin The cost and expense of administering the provisions of this chapter shall be paid by the association.deleted text end The board deleted text begin shalldeleted text end new text begin mustnew text end appoint an executive director on the basis of education, experience in the retirement field, ability to manage and lead system staff, and ability to assist the board in setting a vision for the system. The executive director deleted text begin shalldeleted text end new text begin mustnew text end have had at least five years of experience deleted text begin on the administrative staff of a majordeleted text end new text begin in either an executive-level management position or in a position with responsibility for the governance, management, or administration of a new text end retirement deleted text begin systemdeleted text end new text begin plannew text end .

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 6

ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION

Section 1. new text begin [354A.25] AUTHORITY TO ELECT A SURVIVOR ANNUITY FOR A SAME-SEX SPOUSE. new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding any law or bylaws to the contrary, an eligible person, as defined in subdivision 2, is authorized to file an amended benefit election to change the eligible person's retirement annuity to a joint and survivor annuity and designate a beneficiary who is the same sex as the eligible person if the eligible person had not previously been allowed to designate a same-sex spouse because the law or bylaws did not permit the designation of a same-sex spouse. new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following definitions apply, unless the context clearly indicates another meaning is intended. new text end

new text begin (a) "Eligible person" means a person who: new text end

new text begin (1) was formerly a basic member as defined under section 354A.011, subdivision 8, or a coordinated member, as defined under section 354A.011, subdivision 11, of the St. Paul Teachers Retirement Fund Association; new text end

new text begin (2) retired before August 1, 2013, and is receiving a retirement annuity; new text end

new text begin (3) was unmarried at the time of retirement due to the lack of full recognition of same sex marriages under state law; and new text end

new text begin (4) had a same-sex spouse at the time of retirement who has continued to be the eligible person's same-sex spouse until the time of the filing of the amended benefit election under subdivision 3. new text end

new text begin (b) "Same-sex spouse" means a spouse of the same sex as the eligible person who otherwise satisfies the eligibility requirements to receive spousal benefits under the basic plan or coordinated plan of the St. Paul Teachers Retirement Fund Association. Before August 1, 2013, a same-sex spouse is an individual in a relationship with the eligible person that would have caused the individual to satisfy the eligibility requirements to receive spousal benefits under the basic plan or coordinated plan of the St. Paul Teachers Retirement Fund Association had the individual and eligible person been permitted to marry under state law. new text end

new text begin Subd. 3. new text end

new text begin Right to elect a joint and survivor annuity for a same-sex spouse. new text end

new text begin (a) An eligible person may file an amended benefit election to change the eligible person's retirement annuity to a joint and survivor annuity that will pay an annuity for the life of the eligible person and a survivor annuity for the life of the eligible person's same-sex spouse. new text end

new text begin (b) To file an amended benefit election, the eligible person must file an election in the form requested by the executive director of the St. Paul Teachers Retirement Fund Association and must designate the same-sex spouse as the primary designated beneficiary. new text end

new text begin Subd. 4. new text end

new text begin Eligible persons who are members of the coordinated plan. new text end

new text begin If the eligible person is a member of the coordinated plan of the St. Paul Teachers Retirement Fund Association, the executive director will recalculate the eligible person's benefit based on the amended benefit election and notify the eligible person of the amount that was overpaid plus interest since the commencement of the retirement annuity. The overpayment plus interest must be recovered in accordance with section 354A.12, subdivision 7, by reducing future monthly pension payments. new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 7

TRANSFERS FROM THE MINNESOTA STATE IRAP TO TRA

Section 1.

new text begin ALLOWING TRANSFERS FROM THE IRAP TO TRA FOR FOUR FOND DU LAC COLLEGE EMPLOYEES. new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding any provision of law to the contrary, an eligible person described in subdivision 2 is authorized to become a member of the Teachers Retirement Association and to receive service and salary credit in the Teachers Retirement Association upon making an election and the contribution required under subdivision 3. new text end

new text begin Subd. 2. new text end

new text begin Eligible person. new text end

new text begin (a) An eligible person is a person described in paragraph (b), (c), (d), or (e). new text end

new text begin (b) An eligible person is a person who: new text end

new text begin (1) was born on June 14, 1969; new text end

new text begin (2) is employed by a Minnesota state college or university or the Board of Trustees of the Minnesota State Colleges and Universities; new text end

new text begin (3) was first employed on December 13, 2017, by the Fond du Lac Tribal and Community College as an eLearning support specialist, with retirement coverage in the higher education individual retirement account plan; and new text end

new text begin (4) was not offered an election to be covered by the Teachers Retirement Association as authorized by Minnesota Statutes 2017, section 354B.21. new text end

new text begin (c) An eligible person is a person who: new text end

new text begin (1) was born on October 9, 1992; new text end

new text begin (2) is employed by a Minnesota state college or university or the Board of Trustees of the Minnesota State Colleges and Universities; new text end

new text begin (3) was first employed on June 12, 2019, by the Fond du Lac Tribal and Community College as the Nandagikendan (Seek to Learn) Academy director with retirement coverage in the higher education individual retirement account plan; and new text end

new text begin (4) was not offered an election to be covered by the Teachers Retirement Association as authorized by Minnesota Statutes 2019, section 354B.211. new text end

new text begin (d) An eligible person is a person who: new text end

new text begin (1) was born on November 12, 1983; new text end

new text begin (2) is employed by a Minnesota state college or university or the Board of Trustees of the Minnesota State Colleges and Universities; new text end

new text begin (3) was first employed on February 18, 2020, by the Fond du Lac Tribal and Community College as a youth education outreach coordinator with retirement coverage in the higher education individual retirement account plan; and new text end

new text begin (4) was not offered an election to be covered by the Teachers Retirement Association as authorized by Minnesota Statutes 2020, section 354B.211. new text end

new text begin (e) An eligible person is a person who: new text end

new text begin (1) was born on September 3, 1982; new text end

new text begin (2) is employed by a Minnesota state college or university or the Board of Trustees of the Minnesota State Colleges and Universities; new text end

new text begin (3) was first employed on June 11, 2018, by the Fond du Lac Tribal and Community College as a farm manager with retirement coverage in the higher education individual retirement account plan; and new text end

new text begin (4) was not offered an election to be covered by the Teachers Retirement Association as authorized by Minnesota Statutes 2018, section 354B.21. new text end

new text begin Subd. 3. new text end

new text begin Election, transfer, and payment. new text end

new text begin (a) To elect coverage by the Teachers Retirement Association, an eligible person must submit a written application to the executive director of the Teachers Retirement Association on a form provided by the Teachers Retirement Association. The application must include documentation demonstrating that the person is an eligible person under subdivision 2 and any other relevant information that the executive director may require. new text end

new text begin (b) Membership in the Teachers Retirement Association commences after the date the executive director receives the retirement coverage election and information described under paragraph (a) and the contribution specified under paragraph (c), if any. Upon membership commencement, the executive director must grant past service and salary credit for employment with a Minnesota state college or university from the date the eligible person was first employed as described under subdivision 2. new text end

new text begin (c) If the eligible person makes the retirement coverage election under paragraph (a), the eligible person must make a contribution to the Teachers Retirement Association equal to the excess, if any, of the employee contributions that the eligible person would have made if covered by the Teachers Retirement Association for the period of past service and salary for which credit is to be granted under paragraph (b) over the employee contributions that the eligible person made to the higher education individual retirement account plan for the same period of past service and salary. The executive director of the Teachers Retirement Association must determine the amount to be contributed under this paragraph and notify the eligible person of the amount required and options for making the payment. new text end

new text begin (d) Upon the election of retirement coverage under paragraph (a) and payment of the contribution under paragraph (c), if a contribution is required, the value of the eligible person's account in the higher education individual retirement account plan must be transferred to the Teachers Retirement Association. new text end

new text begin (e) Upon receipt of the amount transferred under paragraph (d), the Teachers Retirement Association shall determine the required purchase payment amount calculated under Minnesota Statutes, section 356.551, as if the coverage election was a prior service credit purchase. new text end

new text begin (f) From the amount calculated under paragraph (e), the executive director of the Teachers Retirement Association must subtract the amounts received under paragraphs (c) and (d). The Board of Trustees of the Minnesota State Colleges and Universities must transmit the remaining amount, if any, to the executive director of the Teachers Retirement Association within 60 days following the receipt of the amount transferred under paragraph (d). new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin The authority to make a retirement coverage election under this section expires one year from the effective date of this section. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

new text begin ALLOWING TRANSFER FROM THE IRAP TO TRA FOR ONE MINNESOTA STATE EMPLOYEE. new text end

new text begin (a) Notwithstanding any provision of law to the contrary, an eligible person described in paragraph (b) is authorized to become a member of the Teachers Retirement Association and to receive service and salary credit in the Teachers Retirement Association from May 28, 2008, upon making an election under paragraph (c) and upon making the required contribution under paragraph (e). new text end

new text begin (b) An eligible person is a person who: new text end

new text begin (1) was born on July 11, 1950; new text end

new text begin (2) was first employed on May 28, 2008, in the Minnesota State system office in the city of St. Paul as an academic program director and, on December 31, 2022, was employed as the system director for Academic Programs, Planning, and Transfer, with retirement coverage in the higher education individual retirement account plan; and new text end

new text begin (3) was not offered an election to be covered by the Teachers Retirement Association as authorized by Minnesota Statutes 2008, section 354B.21. new text end

new text begin (c) To elect coverage by the Teachers Retirement Association, an eligible person must submit a written application to the executive director of the Teachers Retirement Association on a form provided by the Teachers Retirement Association. The application must include documentation demonstrating that the person is an eligible person under paragraph (b) and any other relevant information that the executive director may require. new text end

new text begin (d) Membership in the Teachers Retirement Association commences after the date the executive director receives (1) the retirement coverage election, including information described in paragraph (c), and (2) the contribution specified in paragraph (e). Upon membership commencement, the executive director must grant past service and salary credit for employment with Minnesota State from May 28, 2008. new text end

new text begin (e) If the eligible person makes the retirement coverage election under paragraph (c), the eligible person must make a contribution to the Teachers Retirement Association equal to the excess, if any, of the employee contributions that the eligible person would have made if covered by the Teachers Retirement Association for the period of past service and salary for which credit is to be granted under paragraph (d) over the employee contributions that the eligible person made to the higher education individual retirement account plan for the same period of past service and salary. The executive director of the Teachers Retirement Association must determine the amount to be contributed under this paragraph and notify the eligible person of the amount required and options for making the payment. new text end

new text begin (f) If payment is made under paragraph (e), the value of the eligible person's account in the higher education individual retirement account plan must be transferred to the Teachers Retirement Association. new text end

new text begin (g) Upon receipt of the amount transferred under paragraph (f), the Teachers Retirement Association shall determine the required purchase payment amount calculated under Minnesota Statutes, section 356.551, as if the coverage election was a purchase of prior service credit. new text end

new text begin (h) From the amount calculated under paragraph (g), the executive director of the Teachers Retirement Association must subtract the amounts received under paragraphs (e) and (f). The Board of Trustees of the Minnesota State Colleges and Universities must transmit the remaining amount, if any, to the executive director of the Teachers Retirement Association within 60 days following the receipt of the amount transferred under paragraph (f). new text end

new text begin (i) An eligible person's authority to make a retirement coverage election under this section expires one year from the effective date of this section. new text end

new text begin (j) An eligible person may elect coverage by the Teachers Retirement Association under paragraph (c) during or after the eligible person's employment with the Minnesota State Colleges and Universities, as long as the eligible person has not withdrawn or taken a distribution of all or any portion of the eligible person's account in the higher education individual retirement account plan. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin WORK GROUP ON IRAP TO TRA TRANSFERS. new text end

new text begin Subdivision 1. new text end

new text begin Work group established. new text end

new text begin The executive director of the Legislative Commission on Pensions and Retirement must convene a work group for the purpose of recommending legislation to end the need for special legislation permitting participants in the higher education individual retirement account plan to transfer to the Teachers Retirement Association because the participant was not aware or did not receive notice of the right to elect a transfer when the participant was eligible to elect a transfer under applicable law. new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The work group must consist of at least the following: new text end

new text begin (1) representatives from Minnesota State Colleges and Universities; new text end

new text begin (2) representatives from the Teachers Retirement Association; new text end

new text begin (3) one representative from the Inter Faculty Organization (IFO); new text end

new text begin (4) one representative from the Minnesota State College Faculty (MSCF); and new text end

new text begin (5) one representative from the Minnesota Association of Professional Employees (MAPE). new text end

new text begin (b) The executive director may invite others to participate in one or more meetings of the work group. new text end

new text begin (c) The organizations specified in paragraph (a) must provide the executive director with the names and contact information for the representatives who will serve on the work group by June 15, 2023. new text end

new text begin Subd. 3. new text end

new text begin Scope. new text end

new text begin (a) The work group must recommend legislation or alternatives for legislation that: new text end

new text begin (1) address the cost of the transfers to the Teachers Retirement Association and the Minnesota State Colleges and Universities; new text end

new text begin (2) end the need for participants in the higher education individual retirement account plan to seek special legislation permitting them to transfer to the Teachers Retirement Association; new text end

new text begin (3) would have authorized the transfer election by all individuals covered by special legislation in the last ten legislative sessions had the recommended legislation been enacted 11 years ago; new text end

new text begin (4) require the administration of Minnesota State Colleges and Universities to conduct outreach to all facilities and plan participants to inform them about the opportunity to transfer to the Teachers Retirement Association and the procedure for doing so; new text end

new text begin (5) require an annual report to the Legislative Commission on Pensions and Retirement from the appropriate human resources manager at Minnesota State Colleges and Universities and the executive director of the Teachers Retirement Association on the number of employees who elected a transfer during the prior twelve-month period under the legislation and, for each employee, the cost of the transfer to the employee and Minnesota State Colleges and Universities and the actuarial cost of the employee's pension benefit at the time of the transfer as calculated by the Teachers Retirement Association; and new text end

new text begin (6) must not increase the unfunded liability of the Teachers Retirement Association. new text end

new text begin (b) The recommendation must be accompanied by estimates prepared by representatives of the Minnesota State Colleges and Universities of the number of participants in the higher education individual retirement account plan who are eligible for a transfer under the recommended legislation and the cost to the Minnesota State Colleges and Universities if the eligible participants elect the transfer. new text end

new text begin Subd. 4. new text end

new text begin Due date for submitting recommendation to the commission. new text end

new text begin The executive director must submit the recommendation of the work group to the chair of the Legislative Commission on Pensions and Retirement by January 5, 2024. new text end

new text begin Subd. 5. new text end

new text begin Meetings. new text end

new text begin (a) The executive director must convene the first meeting of the work group by August 1, 2023, and will serve as chair. new text end

new text begin (b) Meetings may be conducted remotely or in-person or a combination of remote and in-person. new text end

new text begin (c) In-person meetings will be held in the offices of the Legislative Coordinating Commission. new text end

new text begin Subd. 6. new text end

new text begin Compensation; lobbying; retaliation. new text end

new text begin (a) Members of the work group serve without compensation. new text end

new text begin (b) Participation in the work group is not lobbying under Minnesota Statutes, chapter 10A. new text end

new text begin (c) An individual's employer or an association of which an individual is a member must not retaliate against the individual because of the individual's participation in the work group. new text end

new text begin Subd. 7. new text end

new text begin Administrative support. new text end

new text begin Commission staff must provide administrative support for the work group. new text end

new text begin Subd. 8. new text end

new text begin Expiration. new text end

new text begin The work group expires June 30, 2024. new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 8

SERVICE CREDIT PURCHASES FOR PERIODS OF MILITARY LEAVE

Section 1. Minnesota Statutes 2022, section 354.53, subdivision 3, is amended to read:

Subd. 3.

Eligible payment period.

(a) To receive service credit under this section, the contributions specified in this section must be transmitted to the Teachers Retirement Association during the period which begins with the date on which the individual returns to teaching service and which has a duration of three times the length of the uniformed service period, but not to exceed five years.

(b) Notwithstanding paragraph (a), if the payment period determined under paragraph (a) is less than deleted text begin one yeardeleted text end new text begin three yearsnew text end , the contributions required under this section to receive service credit may be made within deleted text begin one yeardeleted text end new text begin three years new text end from the discharge date.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2022, section 354A.093, subdivision 4, is amended to read:

Subd. 4.

Eligible payment period.

(a) To receive service credit under this section, the contributions specified in this section must be transmitted to the St. Paul Teachers Retirement Fund Association during the period which begins with the date the individual returns to teaching service and which has a duration of three times the length of the uniformed service period, but not to exceed five years.

(b) Notwithstanding paragraph (a), if the payment period determined under paragraph (a) is less than deleted text begin one yeardeleted text end new text begin three yearsnew text end , the contributions required under this section to receive service credit may be made within deleted text begin one yeardeleted text end new text begin three years new text end from the discharge date.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 9

ANNUAL LIMIT ON PUBLIC FUNDS CONTRIBUTED TO TWO MULTIEMPLOYER PENSION PLANS

Section 1. Minnesota Statutes 2022, 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) to a deferred compensation plan defined in subdivision 3;

(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 laborers national industrial pension fund or to a laborers 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 deleted text begin $7,000deleted text end new text begin $10,000new text end 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 $5,000 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 deleted text begin $5,000deleted text end new text begin $10,000new text end per year per employee;

(11) to the International Association of Machinists national 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 $5,000 per year per employee;

(12) for employees of United Hospital District, Blue Earth, to the state of Minnesota deferred compensation program, if the employee makes a contribution, in an amount that does not exceed the total percentage of covered salary under section 353.27, subdivisions 3 and 3a;

(13) to the alternative retirement plans established by the Hennepin County Medical Center under section 383B.914, subdivision 5; or

(14) to the International Brotherhood of Teamsters Central States pension plan for fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who are members of the International Brotherhood of Teamsters Local 638 by virtue of that employment.

ARTICLE 10

VESTING UNDER THE PERA STATEWIDE VOLUNTEER FIREFIGHTER PLAN

Section 1. Minnesota Statutes 2022, section 353G.01, subdivision 8, is amended to read:

Subd. 8.

Member.

"Member" means new text begin an individual who is or was new text end a volunteer firefighter deleted text begin who provides activedeleted text end new text begin providing new text end service to a deleted text begin municipal fire departmentdeleted text end new text begin municipality new text end or an independent nonprofit firefighting corporation deleted text begin where the applicable municipality or corporationdeleted text end new text begin that new text end has elected coverage by the deleted text begin retirementdeleted text end plan under section 353G.05, and deleted text begin whichdeleted text end new text begin whose new text end service is covered by the deleted text begin retirementdeleted text end plan.

Sec. 2.

Minnesota Statutes 2022, section 353G.01, is amended by adding a subdivision to read:

new text begin Subd. 12a. new text end

new text begin Service credit. new text end

new text begin "Service credit" means the period of service rendered by a volunteer firefighter that is certified under section 353G.07 by the fire chief of the fire department in which the volunteer firefighter serves. A volunteer firefighter's service credit equals all periods of service with any fire department covered by the plan. new text end

Sec. 3.

Minnesota Statutes 2022, section 353G.01, is amended by adding a subdivision to read:

new text begin Subd. 14a. new text end

new text begin Vesting service credit. new text end

new text begin "Vesting service credit" means service credit plus any earlier period of service rendered as a volunteer firefighter in a fire department in the state that was not covered by the plan at the time the service was rendered. The earlier period of service must be certified by the fire chief of the fire department covered by the plan in a manner similar to the requirements of section 353G.07. The volunteer firefighter must provide documentation in a form acceptable to the executive director regarding the earlier period of service. new text end

Sec. 4.

Minnesota Statutes 2022, section 353G.01, subdivision 15, is amended to read:

Subd. 15.

Volunteer firefighter.

"Volunteer firefighter" means a person who is an active member of deleted text begin a municipaldeleted text end new text begin the new text end fire department new text begin of a municipality new text end or new text begin an new text end independent nonprofit firefighting corporation and who, in that capacity, engages in fire suppression activities, provides emergency response services, or delivers fire education or prevention services on an on-call basis.

Sec. 5.

Minnesota Statutes 2022, section 353G.09, subdivision 1, is amended to read:

Subdivision 1.

Entitlement.

(a) A member deleted text begin ofdeleted text end new text begin with at least one year of service credit with a fire department with active firefighters that are covered by new text end the deleted text begin retirementdeleted text end plan is entitled to a deleted text begin service pensiondeleted text end new text begin retirement benefit as defined in subdivision 1anew text end from the deleted text begin retirementdeleted text end new text begin fire department's account in thenew text end plan if the member:

(1) has separated from active service with the fire department for at least 30 days;

(2) has attained the age of at least 50 years;

(3) has satisfied the minimum service requirement in paragraph (b)new text begin or (c), as applicablenew text end ; and

(4) applies in a manner prescribed by the executive director deleted text begin for the service pensiondeleted text end .

(b) deleted text begin Adeleted text end new text begin If the member is a member of the lump-sum division, thenew text end member satisfies the minimum service requirement if the member deleted text begin meets at least one of the following requirements:deleted text end new text begin is at least 40 percent vested as determined under subdivision 2.new text end

deleted text begin (1) the member is at least 40 percent vested based on years of service as a member of the retirement plan; deleted text end

deleted text begin (2) the member is at least 40 percent vested based on years of service with the fire department and the total number of years of service as a member of the former affiliated relief association plus years of service as a member of the retirement plan is at least five; or deleted text end

deleted text begin (3)deleted text end new text begin (c) Ifnew text end the member new text begin is a member of the monthly benefit division, the member satisfies the minimum service requirement if the member new text end has completed at least the minimum number of years of service deleted text begin as a member of the retirement plandeleted text end specified in the retirement benefit plan document deleted text begin attributable to the applicable fire department if the person is a member of the monthly benefit retirement divisiondeleted text end new text begin applicable to the membernew text end .

Sec. 6.

Minnesota Statutes 2022, section 353G.09, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Retirement benefit. new text end

new text begin (a) A volunteer firefighter who is entitled to a service pension under subdivision 1 must receive a retirement benefit under subdivision 1, paragraph (a) or (b), as applicable. new text end

new text begin (b) The retirement benefit of a member of the lump-sum division is equal to the number of years of service credit certified under section 353G.07 for the member, multiplied by the service pension level applicable to the member under section 353G.11, multiplied by the member's vested percentage under subdivision 2. new text end

new text begin (c) The retirement benefit of a member of the monthly benefit division is equal to the number of years of service credit certified under section 353G.07 for the member, multiplied by the service pension level applicable to the member under section 353G.112, multiplied by the member's vested percentage under subdivision 2. new text end

Sec. 7.

Minnesota Statutes 2022, section 353G.09, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Vesting schedule; nonforfeitable portion of service pensiondeleted text end new text begin Vested percentagenew text end .

new text begin A member of the plan has a nonforfeitable right to a retirement benefit, up to the percent vested. The member's vested percentage is determined under paragraph (a), (b), or (c), as applicable. new text end

(a) deleted text begin Except as provided in paragraphs (c) and (d), an activedeleted text end new text begin If the member is a new text end member of the lump-sum deleted text begin retirementdeleted text end division deleted text begin is entitled to a service pensiondeleted text end new text begin and employed in a fire department that joined the plan before January 1, 2023, the member's vested percentage is new text end equal to the deleted text begin nonforfeitabledeleted text end percentage new text begin that corresponds to the number new text end of deleted text begin the applicable service pension amount, taking into accountdeleted text end years of new text begin vestingnew text end service deleted text begin as a member of the retirement plan plus years of service as a member of the former affiliated relief association, if any,deleted text end new text begin credit,new text end as follows:

Completed years of service credit		deleted text begin Nonforfeitabledeleted text end new text begin Vested new text end percentage deleted text begin of the service pensiondeleted text end
less than 5		0 percent
5		40 percent
6		44 percent
7		48 percent
8		52 percent
9		56 percent
10		60 percent
11		64 percent
12		68 percent
13		72 percent
14		76 percent
15		80 percent
16		84 percent
17		88 percent
18		92 percent
19		96 percent

(b) new text begin If the member is a member of the lump-sum division and employed in a fire department that joined the retirement plan on or after January 1, 2023, the member's vested percentage is equal to the percentage determined by applying the vesting schedule selected in the request for coverage under section 353G.05, subdivision 1a, taking into account years of vesting service credit.new text end

new text begin (c) new text end If deleted text begin an activedeleted text end new text begin the new text end member new text begin is a member new text end of the monthly benefit retirement division new text begin and new text end has completed new text begin 20 years of service as a member of the plan, the member is 100 percent vested. If the member has completed new text end less than 20 years of service deleted text begin creditdeleted text end as a member of the deleted text begin monthly benefit retirement division of thedeleted text end plan, the deleted text begin person's entitlement to a service pension must be governed bydeleted text end new text begin member's vested percentage is equal to the percentage determined under new text end the retirement benefit plan document deleted text begin attributable to the applicable fire departmentdeleted text end new text begin applicable to the membernew text end .

deleted text begin (c) A person described in paragraph (d) is entitled to the vested portion of the service pension as determined by applying the vesting schedule selected in the request for coverage under section 353G.05, subdivision 1a, taking into account years of service as a member of the retirement plan plus years of service as a member of the former affiliated relief association, if any. deleted text end

deleted text begin (d) A person is described in this paragraph if the person becomes a member of the lump-sum retirement division in connection with the transfer of coverage from a relief association to the retirement plan on or after January 1, 2023, or in connection with a municipality or independent nonprofit firefighting corporation joining the retirement plan on or after January 1, 2023. deleted text end

Sec. 8.

Minnesota Statutes 2022, section 353G.14, is amended to read:

353G.14 deleted text begin PURCHASE OF ANNUITY CONTRACTSdeleted text end new text begin DISTRIBUTIONS FROM LUMP-SUM DIVISIONnew text end .

new text begin Subdivision 1. new text end

new text begin Lump sum. new text end

new text begin Unless a volunteer firefighter requests an annuity under subdivision 2, the executive director must distribute a lump-sum service pension in the form of a single payment from the account of each fire department covered by the plan in which the volunteer firefighter earned a retirement benefit under section 353G.09. new text end

new text begin Subd. 2. new text end

new text begin Annuity. new text end

The executive director may purchase an annuity contract on behalf of a deleted text begin retiringdeleted text end new text begin volunteer new text end firefighter retiring from the lump-sum deleted text begin retirementdeleted text end division of the deleted text begin statewide retirementdeleted text end plan with a total premium payment in an amount equal to the lump-sum service pension payable under section 353G.09 if the purchase was requested by the deleted text begin retiringdeleted text end new text begin volunteer new text end firefighter in a manner prescribed by the executive director. The annuity contract must be purchased from an insurance carrier that is licensed to do business in this state. If purchased, the annuity contract is in lieu of any service pension or other benefit from the lump-sum retirement plan of the retirement plan. The annuity contract may be purchased at any time after the volunteer firefighter discontinues active service, but the annuity contract must stipulate that no annuity amounts are payable before the deleted text begin formerdeleted text end volunteer firefighter attains the age of 50.

Sec. 9.

new text begin REVISOR INSTRUCTION. new text end

new text begin In Minnesota Statutes, chapter 353G, the revisor of statutes shall change the terms in column A to the terms in column B wherever the terms appear. new text end

	new text begin Column A new text end	new text begin Column B new text end
	new text begin lump-sum retirement division new text end	new text begin lump-sum division new text end
	new text begin monthly benefit retirement division new text end	new text begin monthly benefit division new text end
	new text begin retirement plan new text end	new text begin plan new text end

Sec. 10.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2022, sections 353G.01, subdivision 7; and 353G.13, new text end new text begin are repealed. new text end

Sec. 11.

new text begin EFFECTIVE DATE. new text end

new text begin Sections 1 to 10 are effective January 1, 2024. new text end

ARTICLE 11

RELIEF ASSOCIATION REQUIREMENTS AFTER JOINING THE PERA STATEWIDE VOLUNTEER FIREFIGHTER PLAN

Section 1. Minnesota Statutes 2022, section 353G.06, subdivision 2, is amended to read:

Subd. 2.

Other relief association changes.

In addition to the transfer and disestablishment of the special fund under subdivision 1, notwithstanding any provisions of chapter 424A or 424B to the contrary, upon the effective date of the change in deleted text begin volunteer firefighter retirementdeleted text end coverage, if the relief association membership elects to retain the relief association as a deleted text begin fraternaldeleted text end new text begin nonprofit new text end organization after the deleted text begin benefitdeleted text end coverage election, the following changes must be implemented with respect to the deleted text begin applicable volunteer firefighterdeleted text end relief association:

deleted text begin (1) the relief association board of trustees membership is reduced to five, comprised of the fire chief of the fire department and four trustees elected by and from the relief association membership; deleted text end

deleted text begin (2) the relief association may only maintain a general fund, which continues to be governed by section 424A.06; deleted text end

deleted text begin (3)deleted text end new text begin (1) new text end the relief association is not authorized to receive deleted text begin the proceeds ofdeleted text end any state aid or deleted text begin to receivedeleted text end any municipal funds; and

deleted text begin (4)deleted text end new text begin (2) new text end the relief association may not pay any service pension or benefit that was not authorized as a general fund disbursement under the articles of incorporation or bylaws of the relief association in effect immediately prior to the plan coverage election process.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2022, section 353G.06, subdivision 3, is amended to read:

Subd. 3.

Successor in interest.

Upon the disestablishment of the special fund of the deleted text begin volunteer firefighterdeleted text end relief association under this section, the deleted text begin statewide volunteer firefighterdeleted text end new text begin retirement new text end plan is the successor in interest of the special fund of the deleted text begin volunteer firefighterdeleted text end relief association for all claims against the special fund other than a claim against the special fund, the deleted text begin volunteer firefighterdeleted text end relief association, the municipality, the fire department, or any person connected with the deleted text begin volunteer firefighterdeleted text end relief association in a fiduciary capacity under chapter 356A or common law that was based on any act or acts which were not performed in good faith and which constituted a breach of a fiduciary obligation. As the successor in interest of the special fund of the deleted text begin volunteer firefighterdeleted text end relief association, the deleted text begin statewide volunteer firefighterdeleted text end new text begin retirement new text end plan may assert any applicable defense in any judicial proceeding which the board of trustees of the deleted text begin volunteer firefighterdeleted text end relief association or the municipality would have been entitled to assert.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 12

THRESHOLD FOR REQUIRING RELIEF ASSOCIATIONS TO FILE AUDITED FINANCIAL STATEMENTS

Section 1. Minnesota Statutes 2022, section 424A.014, subdivision 1, is amended to read:

Subdivision 1.

Financial report and audit.

(a) An annual financial report and audited financial statements in accordance with paragraphs (c) to (e) must be submitted by the board of trustees of the Bloomington Fire Department Relief Association and the board of trustees of each deleted text begin volunteerdeleted text end firefighters relief association with special fund assets of at least deleted text begin $500,000deleted text end new text begin $750,000 new text end or special fund liabilities of at least deleted text begin $500,000deleted text end new text begin $750,000new text end , according to any previous year's financial report.

(b) The board of trustees of a deleted text begin volunteerdeleted text end firefighters relief association with special fund assets of less than deleted text begin $500,000deleted text end new text begin $750,000 new text end and special fund liabilities of less than deleted text begin $500,000deleted text end new text begin $750,000new text end , according to each previous year's financial report, may submit an annual financial report and audited financial statements in accordance with paragraphs (c) to (e).

(c) The financial report must cover the relief association's special fund and general fund and be in the style and form prescribed by the state auditor. The financial report must be countersigned by:

(1) the municipal clerk or clerk-treasurer of the municipality in which the relief association is located if the relief association is directly associated with a municipal fire department;

(2) the municipal clerk or clerk-treasurer of the largest municipality in population that contracts with the independent nonprofit firefighting corporation if the volunteer firefighter relief association is a subsidiary of an independent nonprofit firefighting corporation, and by the secretary of the independent nonprofit firefighting corporation; or

(3) the chief financial official of the county in which the volunteer firefighter relief association is located or primarily located if the relief association is associated with a fire department that is not located in or associated with an organized municipality.

(d) The financial report must be retained in the office of the Bloomington Fire Department Relief Association or the volunteer firefighter relief association for public inspection and must be filed with the governing body of the government subdivision in which the associated fire department is located after the close of the fiscal year. One copy of the financial report must be furnished to the state auditor on or before June 30 after the close of the fiscal year.

(e) Audited financial statements that present the true financial condition of the relief association's special fund and general fund must be attested to by a certified public accountant or by the state auditor and must be filed with the state auditor on or before June 30 after the close of the fiscal year. Audits must be conducted in compliance with generally accepted auditing standards and section 6.65 governing audit procedures. The state auditor may accept audited financial statements in lieu of the financial report required in paragraph (a).

Sec. 2.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This article is effective on December 31, 2023, and applies to audited financial statements for calendar year 2023 and thereafter. A relief association with special fund assets of less than $750,000 and special fund liabilities of less than $750,000 on December 31, 2023, is not required to submit audited financial statements under Minnesota Statutes, section 424A.014, subdivision 1, unless and until the association's special fund assets or special fund liabilities exceed $750,000, even if audited financial statements were required on the date immediately prior to the effective date. new text end

ARTICLE 13

HAMEL AND LORETTO RELIEF ASSOCIATIONS

Section 1.

new text begin STATEWIDE VOLUNTEER FIREFIGHTER PLAN COVERAGE FOR HAMEL AND LORETTO FIREFIGHTERS; MERGER OF ASSETS AND LIABILITIES. new text end

new text begin Subdivision 1. new text end

new text begin Mid-year effective date for coverage by the statewide volunteer firefighter plan. new text end

new text begin (a) If the requirements of paragraph (b) and all other requirements for coverage by the statewide volunteer firefighter plan under Minnesota Statutes, section 353G.05, are satisfied by the governing boards of the independent nonprofit firefighting corporation and the affiliated relief associations, the effective date of coverage is as provided in paragraph (c) or (d), as applicable, notwithstanding Minnesota Statutes, section 353G.05, subdivision 5, paragraph (c). new text end

new text begin (b) The Hamel Volunteer Fire Department Relief Association and the Loretto Firefighters Relief Association must submit to the state auditor detailed investment or financial statements in a format satisfactory to the state auditor that confirm transfer of all special fund assets to the State Board of Investment. new text end

new text begin (c) Coverage of the volunteer firefighters employed by the independent nonprofit firefighting corporation that operates the fire department that serves the community of Hamel is effective on the later of the date of approval by the governing board of the independent nonprofit firefighting corporation or the date of approval by the Board of Trustees of the Hamel Volunteer Fire Department Relief Association. new text end

new text begin (d) Coverage of the volunteer firefighters employed by the independent nonprofit firefighting corporation that operates the fire department that serves the city of Loretto is effective on the later of the date of approval by the governing board of the independent nonprofit firefighting corporation or the date of approval by the Board of Trustees of the Loretto Firefighters Relief Association. new text end

new text begin Subd. 2. new text end

new text begin Merger of retirement accounts in the statewide volunteer firefighter plan for the Hamel and Loretto firefighters. new text end

new text begin (a) The executive director of the public employees retirement association must merge the assets and liabilities of the lump-sum retirement plan account for the fire department that serves the community of Hamel with the assets and liabilities of the lump-sum retirement plan account for the fire department that serves the city of Loretto upon receipt of the following: new text end

new text begin (1) resolutions approved by the governing board of the independent nonprofit firefighting corporation associated with the fire department that serves the community of Hamel approving the merger and directing the executive director to merge the lump-sum plan accounts and take any other action determined necessary by the executive director to effectuate the merger; and new text end

new text begin (2) resolutions approved by the governing board of the independent nonprofit firefighting corporation associated with the fire department that serves the city of Loretto approving the merger and directing the executive director to merge the lump-sum plan accounts and take any other action determined necessary by the executive director to effectuate the merger. new text end

new text begin (b) The executive director is authorized to take whatever actions deemed necessary to effectuate the merger, notwithstanding any state laws to the contrary. new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 14

SERVICE CREDIT TRANSFER FROM THE GENERAL STATE EMPLOYEES PLAN TO THE CORRECTIONAL STATE EMPLOYEES PLAN

Section 1.

new text begin TRANSFER OF PAST SERVICE CREDIT FROM THE MINNESOTA STATE RETIREMENT SYSTEM GENERAL PLAN TO THE MINNESOTA STATE RETIREMENT SYSTEM CORRECTIONAL PLAN. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The following terms as used in this section have the meanings given in this subdivision. new text end

new text begin (1) "Correctional plan" means the correctional employees retirement plan of the Minnesota State Retirement System. new text end

new text begin (2) "Executive director" means the executive director of the Minnesota State Retirement System. new text end

new text begin (3) "General plan" means the general state employees retirement plan of the Minnesota State Retirement System. new text end

new text begin (4) "Service credit" means time credited as allowable service under Minnesota Statutes, section 352.01, subdivision 11, to an eligible person described in subdivision 3. new text end

new text begin (5) "Transfer period" means the period from July 8, 1998, to August 5, 2001. new text end

new text begin Subd. 2. new text end

new text begin Transfer of past service credit authorized. new text end

new text begin Notwithstanding any state law to the contrary, an eligible person described in subdivision 3 who makes a payment to the correctional employees retirement fund, as permitted under subdivision 4, on or before one year following the effective date of this section is entitled to have: new text end

new text begin (1) the employer payment made on the eligible person's behalf under subdivision 5; and new text end

new text begin (2) applicable past service credit transferred from the general plan to the correctional plan for the transfer period under subdivision 6. new text end

new text begin Subd. 3. new text end

new text begin Eligible person. new text end

new text begin An eligible person is a person who: new text end

new text begin (1) is an employee of the Department of Corrections; new text end

new text begin (2) on July 8, 1998, was appointed to a position with MinnCor, a position eligible to participate in the correctional plan; and new text end

new text begin (3) from July 8, 1998, to August 5, 2001, was erroneously covered by the general plan because the department misreported the person's retirement plan eligibility to the Minnesota State Retirement System. new text end

new text begin Subd. 4. new text end

new text begin Payment by eligible person. new text end

new text begin (a) An eligible person may pay to the executive director the difference between the employee contribution rate for the general plan and the employee contribution rate for the correctional plan for the transfer period. The difference between the two rates must be applied to the eligible person's salary at the time that each contribution would have been deducted from pay if the eligible person had been covered by the correctional plan for the transfer period. The payment must include interest at the applicable annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision 2, calculated from the date that each contribution would have been deducted to the date that the payment is made. new text end

new text begin (b) The payment under paragraph (a) must be made in a lump sum no later than one year following the effective date. Upon receipt of the payment, the executive director must notify the commissioner of corrections that the payment was made and of the amount owed under subdivision 5. new text end

new text begin Subd. 5. new text end

new text begin Payment by the Department of Corrections. new text end

new text begin If an eligible person makes the payment under subdivision 4, the Department of Corrections, on behalf of the eligible person, shall pay to the Minnesota State Retirement System the actuarial present value of the additional benefit resulting from the transferred service credit less the payment made under subdivision 4. This amount must be paid by the department in a lump sum within 30 days after the date on which the executive director notifies the commissioner of corrections under subdivision 4. new text end

new text begin Subd. 6. new text end

new text begin Transfer of assets and service credit. new text end

new text begin (a) If the payments under subdivisions 4 and 5 are made, the executive director must transfer assets from the general state employees retirement fund to the correctional employees retirement fund in an amount equal to the actuarial present value of the benefits earned by the eligible person under the general plan during the transfer period. The transfer of assets must be made within 15 days after receipt of the payments under subdivisions 4 and 5. new text end

new text begin (b) Upon the transfer of the assets under paragraph (a), the eligible person shall have service credit in the correctional plan and no service credit in the general plan for the transfer period. new text end

new text begin EFFECTIVE DATE. new text end

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

Office of the Revisor of Statutes

Minnesota Session Laws - 2023, Regular Session

Resources

Chapter 47

CHAPTER 47--H.F.No. 2950

ARTICLE 1

MINNESOTA STATE RETIREMENT SYSTEM

Section 1.

Minnesota Statutes 2022, section 352B.08, subdivision 1, is amended to read:

Subdivision 1.

Eligibility; when to apply; accrual.

new text begin EFFECTIVE DATE. new text end

Sec. 2.

Minnesota Statutes 2022, section 356.551, subdivision 2, is amended to read:

Subd. 2.

Determination.

new text begin EFFECTIVE DATE. new text end

Sec. 3.

Minnesota Statutes 2022, section 490.1211, is amended to read:

490.1211 UNIFORMED SERVICE.

new text begin Subdivision 1. new text end

new text begin Federal uniformed service protections. new text end

new text begin Subd. 2. new text end

new text begin State-authorized purchase of service credit for periods of military service. new text end

new text begin Subd. 3. new text end

new text begin Application and documentation. new text end

new text begin Subd. 4. new text end

new text begin Purchase payment amount; service credit grant. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 4.

new text begin REPEALER. new text end

new text begin EFFECTIVE DATE. new text end

ARTICLE 2

PUBLIC EMPLOYEES RETIREMENT ASSOCIATIONADMINISTRATIVE PROVISIONS

Section 1.

Minnesota Statutes 2022, section 353.01, subdivision 2a, is amended to read:

Subd. 2a.

Included employees; mandatory membership.

new text begin EFFECTIVE DATE. new text end

Sec. 2.

Minnesota Statutes 2022, section 353.01, subdivision 2b, is amended to read:

Subd. 2b.

Excluded employees.

new text begin EFFECTIVE DATE. new text end

Sec. 3.

Minnesota Statutes 2022, section 353.01, subdivision 15, is amended to read:

Subd. 15.

Dependent child.

new text begin EFFECTIVE DATE. new text end

Sec. 4.

Minnesota Statutes 2022, section 353.0162, is amended to read:

353.0162 SALARY CREDIT PURCHASE FOR PERIODS OF REDUCED SALARY.

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin Subd. 2. new text end

new text begin Salary credit purchase permitted. new text end

new text begin Subd. 3. new text end

new text begin Payment amount. new text end

new text begin Subd. 4. new text end

new text begin Timing of required payment. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 5.

Minnesota Statutes 2022, section 353.031, subdivision 10, is amended to read:

Subd. 10.

Restoring forfeited service and salary credit.

new text begin EFFECTIVE DATE. new text end

Sec. 6.

Minnesota Statutes 2022, section 353.32, subdivision 1c, is amended to read:

Subd. 1c.

Dependent child survivor coverage.

new text begin EFFECTIVE DATE. new text end

Sec. 7.

Minnesota Statutes 2022, section 353E.001, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Fund. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 8.

Minnesota Statutes 2022, section 353E.001, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Member. new text end

PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
ADMINISTRATIVE PROVISIONS