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

                            CHAPTER 223-S.F.No. 806 
                  An act relating to retirement; various retirement 
                  plans; modifying the responsibilities to provide 
                  actuarial valuations and proposed legislative cost 
                  estimates; reducing an appropriation; amending 
                  Minnesota Statutes 2002, sections 352.03, subdivision 
                  6; 352B.02, subdivision 1e; 353.03, subdivision 3a; 
                  354.06, subdivision 2a; 354A.021, subdivision 7; 
                  356.215, subdivisions 2, 18; 422A.06, subdivision 2; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapter 356; repealing Minnesota Statutes 2002, 
                  sections 3.85, subdivisions 11, 12; 356.217. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2002, section 352.03, 
        subdivision 6, is amended to read: 
           Subd. 6.  [DUTIES AND POWERS OF EXECUTIVE DIRECTOR.] The 
        management of the system is vested in the director, who is the 
        executive and administrative head of the system.  The director 
        shall be advisor to the board on matters pertaining to the 
        system and shall also act as the secretary of the board.  The 
        director shall: 
           (1) attend meetings of the board; 
           (2) prepare and recommend to the board appropriate rules to 
        carry out this chapter; 
           (3) establish and maintain an adequate system of records 
        and accounts following recognized accounting principles and 
        controls; 
           (4) designate an assistant director with the approval of 
        the board; 
           (5) appoint any employees, both permanent and temporary, 
        that are necessary to carry out the provisions of this chapter; 
           (6) organize the work of the system as the director deems 
        necessary to fulfill the functions of the system, and define the 
        duties of its employees and delegate to them any powers or 
        duties, subject to the control of the director and under 
        conditions the director may prescribe.  Appointments to exercise 
        delegated power must be by written order and shall be filed with 
        the secretary of state; 
           (7) with the advice and consent of the board, contract for 
        the services of an approved actuary, professional management 
        services, and any other consulting services as necessary and fix 
        the compensation for those services.  The contracts are not 
        subject to competitive bidding under chapter 16C.  Any approved 
        actuary retained by the executive director shall function as the 
        actuarial advisor of the board and the executive director, and 
        may perform actuarial valuations and experience studies to 
        supplement those performed by the actuary retained by the 
        legislative commission on pensions and retirement under section 
        356.214.  Any supplemental actuarial valuations or experience 
        studies shall be filed with the executive director of the 
        Legislative Commission on Pensions and Retirement.  Professional 
        management services may not be contracted for more often than 
        once in six years.  Copies of professional management survey 
        reports must be transmitted to the secretary of the senate, the 
        chief clerk of the house of representatives, and the legislative 
        reference library as provided by section 3.195, and to the 
        executive director of the commission at the time as reports are 
        furnished to the board.  Only management firms experienced in 
        conducting management surveys of federal, state, or local public 
        retirement systems are qualified to contract with the director; 
           (8) with the advice and consent of the board provide 
        in-service training for the employees of the system; 
           (9) make refunds of accumulated contributions to former 
        state employees and to the designated beneficiary, surviving 
        spouse, legal representative, or next of kin of deceased state 
        employees or deceased former state employees, as provided in 
        this chapter; 
           (10) determine the amount of the annuities and disability 
        benefits of employees covered by the system and authorize 
        payment of the annuities and benefits beginning as of the dates 
        on which the annuities and benefits begin to accrue, in 
        accordance with the provisions of this chapter; 
           (11) pay annuities, refunds, survivor benefits, salaries, 
        and necessary operating expenses of the system; 
           (12) certify funds available for investment to the State 
        Board of Investment; 
           (13) with the advice and approval of the board request the 
        State Board of Investment to sell securities when the director 
        determines that funds are needed for the system; 
           (14) prepare and submit to the board and the legislature an 
        annual financial report covering the operation of the system, as 
        required by section 356.20; 
           (15) prepare and submit biennial and annual budgets to the 
        board and with the approval of the board submit the budgets to 
        the Department of Finance; and 
           (16) with the approval of the board, perform other duties 
        required to administer the retirement and other provisions of 
        this chapter and to do its business. 
           Sec. 2.  Minnesota Statutes 2002, section 352B.02, 
        subdivision 1e, is amended to read: 
           Subd. 1e.  [AUDIT; ACTUARIAL VALUATION.] The legislative 
        auditor shall audit the fund.  Any actuarial valuation of the 
        fund required under section 356.215 shall must be prepared by 
        the actuary retained by the Legislative Commission on Pensions 
        and Retirement under section 356.214.  Any approved actuary 
        retained by the executive director under section 352.03, 
        subdivision 6, may perform actuarial valuations and experience 
        studies to supplement those performed by the commission-retained 
        actuary.  Any supplemental actuarial valuation or experience 
        studies shall be filed with the executive director of the 
        Legislative Commission on Pensions and Retirement.  
           Sec. 3.  Minnesota Statutes 2002, section 353.03, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [EXECUTIVE DIRECTOR.] (a)  [APPOINTMENT.] The 
        board shall appoint, with the advice and consent of the senate, 
        an executive director on the basis of education, experience in 
        the retirement field, and leadership ability.  The executive 
        director shall have had at least five years' experience in an 
        executive level management position, which has included 
        responsibility for pensions, deferred compensation, or employee 
        benefits.  The executive director serves at the pleasure of the 
        board.  The salary of the executive director is as provided by 
        section 15A.0815. 
           (b)  [DUTIES.] The management of the association is vested 
        in the executive director who shall be the executive and 
        administrative head of the association.  The executive director 
        shall act as adviser to the board on all matters pertaining to 
        the association and shall also act as the secretary of the 
        board.  The executive director shall: 
           (1) attend all meetings of the board; 
           (2) prepare and recommend to the board appropriate rules to 
        carry out the provisions of this chapter; 
           (3) establish and maintain an adequate system of records 
        and accounts following recognized accounting principles and 
        controls; 
           (4) designate, with the approval of the board, up to two 
        persons who shall serve in the unclassified service and whose 
        salary is set in accordance with section 43A.18, subdivision 3, 
        appoint a confidential secretary in the unclassified service, 
        and appoint employees to carry out this chapter, who are subject 
        to chapters 43A and 179A in the same manner as are executive 
        branch employees; 
           (5) organize the work of the association as the director 
        deems necessary to fulfill the functions of the association, and 
        define the duties of its employees and delegate to them any 
        powers or duties, subject to the control of, and under such 
        conditions as, the executive director may prescribe; 
           (6) with the approval of the board, contract for the 
        services of an approved actuary, professional management 
        services, and any other consulting services as necessary to 
        fulfill the purposes of this chapter.  All contracts are subject 
        to chapter 16C.  The commissioner of administration shall not 
        approve, and the association shall not enter into, any contract 
        to provide lobbying services or legislative advocacy of any 
        kind.  Any approved actuary retained by the executive director 
        shall function as the actuarial advisor of the board and the 
        executive director and may perform actuarial valuations and 
        experience studies to supplement those performed by the actuary 
        retained by the Legislative Commission on Pensions and 
        Retirement under section 356.214.  Any supplemental actuarial 
        valuations or experience studies shall be filed with the 
        executive director of the Legislative Commission on Pensions and 
        Retirement.  Copies of professional management survey reports 
        shall be transmitted to the secretary of the senate, the chief 
        clerk of the house of representatives, and the Legislative 
        Reference Library as provided by section 3.195, and to the 
        executive director of the commission at the same time as reports 
        are furnished to the board.  Only management firms experienced 
        in conducting management surveys of federal, state, or local 
        public retirement systems shall be qualified to contract with 
        the director hereunder; 
           (7) with the approval of the board provide in-service 
        training for the employees of the association; 
           (8) make refunds of accumulated contributions to former 
        members and to the designated beneficiary, surviving spouse, 
        legal representative or next of kin of deceased members or 
        deceased former members, as provided in this chapter; 
           (9) determine the amount of the annuities and disability 
        benefits of members covered by the association and authorize 
        payment of the annuities and benefits beginning as of the dates 
        on which the annuities and benefits begin to accrue, in 
        accordance with the provisions of this chapter; 
           (10) pay annuities, refunds, survivor benefits, salaries, 
        and necessary operating expenses of the association; 
           (11) prepare and submit to the board and the legislature an 
        annual financial report covering the operation of the 
        association, as required by section 356.20; 
           (12) prepare and submit biennial and annual budgets to the 
        board for its approval and submit the approved budgets to the 
        department of finance for approval by the commissioner; 
           (13) reduce all or part of the accrued interest payable 
        under section 353.27, subdivisions 12, 12a, and 12b, or 353.28, 
        subdivision 5, upon receipt of proof by the association of an 
        unreasonable processing delay or other extenuating circumstances 
        of the employing unit.  The executive director shall prescribe 
        and submit for approval by the board the conditions under which 
        such interest may be reduced; and 
           (14) with the approval of the board, perform such other 
        duties as may be required for the administration of the 
        association and the other provisions of this chapter and for the 
        transaction of its business.  
           Sec. 4.  Minnesota Statutes 2002, section 354.06, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [DUTIES OF EXECUTIVE DIRECTOR.] The management 
        of the association is vested in the executive director who shall 
        be the executive and administrative head of the association.  
        The executive director shall act as advisor to the board on all 
        matters pertaining to the association and shall also act as the 
        secretary of the board.  The executive director shall: 
           (1) attend all meetings of the board; 
           (2) prepare and recommend to the board appropriate rules to 
        carry out the provisions of this chapter; 
           (3) establish and maintain an adequate system of records 
        and accounts following recognized accounting principles and 
        controls; 
           (4) designate an assistant executive director in the 
        unclassified service and two assistant executive directors in 
        the classified service with the approval of the board, and 
        appoint such employees, both permanent and temporary, as are 
        necessary to carry out the provisions of this chapter; 
           (5) organize the work of the association as the director 
        deems necessary to fulfill the functions of the association, and 
        define the duties of its employees and delegate to them any 
        powers or duties, subject to the director's control and under 
        such conditions as the director may prescribe; 
           (6) with the approval of the board, contract and set the 
        compensation for the services of an approved actuary, 
        professional management services, and any other consulting 
        services.  These contracts are not subject to the competitive 
        bidding procedure prescribed by chapter 16C.  An approved 
        actuary retained by the executive director shall function as the 
        actuarial advisor of the board and the executive director and 
        may perform actuarial valuations and experience studies to 
        supplement those performed by the actuary retained by the 
        legislative commission on pensions and retirement under section 
        356.214.  Any supplemental actuarial valuations or experience 
        studies shall be filed with the executive director of the 
        Legislative Commission on Pensions and Retirement.  Copies of 
        professional management survey reports must be transmitted to 
        the secretary of the senate, the chief clerk of the house of 
        representatives, and the legislative reference library as 
        provided by section 3.195, and to the executive director of the 
        commission at the same time as reports are furnished to the 
        board.  Only management firms experienced in conducting 
        management surveys of federal, state, or local public retirement 
        systems are qualified to contract with the executive director; 
           (7) with the approval of the board, provide in-service 
        training for the employees of the association; 
           (8) make refunds of accumulated contributions to former 
        members and to the designated beneficiary, surviving spouse, 
        legal representative, or next of kin of deceased members or 
        deceased former members, under this chapter; 
           (9) determine the amount of the annuities and disability 
        benefits of members covered by the association and authorize 
        payment of the annuities and benefits beginning as of the dates 
        on which the annuities and benefits begin to accrue, under this 
        chapter; 
           (10) pay annuities, refunds, survivor benefits, salaries, 
        and necessary operating expenses of the association; 
           (11) prepare and submit to the board and the legislature an 
        annual financial report covering the operation of the 
        association, as required by section 356.20; 
           (12) certify funds available for investment to the state 
        board of investment; 
           (13) with the advice and approval of the board, request the 
        State Board of Investment to sell securities on determining that 
        funds are needed for the purposes of the association; 
           (14) prepare and submit biennial and annual budgets to the 
        board and with the approval of the board submit those budgets to 
        the department of finance; and 
           (15) with the approval of the board, perform such other 
        duties as may be required for the administration of the 
        association and the other provisions of this chapter and for the 
        transaction of its business.  The executive director may: 
           (i) reduce all or part of the accrued interest and fines 
        payable by an employing unit for reporting requirements under 
        section 354.52, based on an evaluation of any extenuating 
        circumstances of the employing unit; 
           (ii) assign association employees to conduct field audits 
        of an employing unit to ensure compliance with the provisions of 
        this chapter; and 
           (iii) recover overpayments, if not repaid to the 
        association, by suspending or reducing the payment of a 
        retirement annuity, refund, disability benefit, survivor 
        benefit, or optional annuity under this chapter until the 
        overpayment, plus interest, has been recovered. 
           Sec. 5.  Minnesota Statutes 2002, section 354A.021, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ACTUARIAL CONSULTANT.] The board of trustees or 
        directors of each teachers retirement fund association may 
        contract for the services of an approved actuary and fix the 
        reasonable compensation for those services.  Any approved 
        actuary retained by the board shall function as the actuarial 
        advisor to the board and may perform actuarial valuations and 
        experience studies to supplement those performed by the actuary 
        retained by the Legislative Commission on Pensions and 
        Retirement under section 356.214.  Any supplemental actuarial 
        valuations or experience studies shall must be filed with the 
        executive director of the Legislative Commission on Pensions and 
        Retirement. 
           Sec. 6.  [356.214] [ACTUARIAL VALUATION PREPARATION; JOINT 
        RETENTION OF CONSULTING ACTUARY.] 
           Subdivision 1.  [JOINT RETENTION.] (a) The chief 
        administrative officers of the Minnesota State Retirement 
        System, the Public Employees Retirement Association, the 
        Teachers Retirement Association, the Duluth Teachers Retirement 
        Fund Association, the Minneapolis Teachers Retirement Fund 
        Association, the Minneapolis Employees Retirement Fund, and the 
        St. Paul Teachers Retirement Fund Association, jointly, on 
        behalf of the state, its employees, its taxpayers, and its 
        various public pension plans, shall contract with an established 
        actuarial consulting firm to conduct annual actuarial valuations 
        and related services for the retirement plans named in paragraph 
        (b).  The principal from the actuarial consulting firm on the 
        contract must be an approved actuary under section 356.215, 
        subdivision 1, paragraph (c).  Prior to becoming effective, the 
        contract under this section is subject to a review and approval 
        by the Legislative Commission on Pensions and Retirement. 
           (b) The contract for actuarial services must include the 
        preparation of actuarial valuations and related actuarial work 
        for the following retirement plans:  
           (1) the teachers retirement plan, Teachers Retirement 
        Association; 
           (2) the general state employees retirement plan, Minnesota 
        State Retirement System; 
           (3) the correctional employees retirement plan, Minnesota 
        State Retirement System; 
           (4) the State Patrol retirement plan, Minnesota State 
        Retirement System; 
           (5) the judges retirement plan, Minnesota State Retirement 
        System; 
           (6) the Minneapolis employees retirement plan, Minneapolis 
        Employees Retirement Fund; 
           (7) the public employees retirement plan, Public Employees 
        Retirement Association; 
           (8) the public employees police and fire plan, Public 
        Employees Retirement Association; 
           (9) the Duluth teachers retirement plan, Duluth Teachers 
        Retirement Fund Association; 
           (10) the Minneapolis teachers retirement plan, Minneapolis 
        Teachers Retirement Fund Association; 
           (11) the St. Paul teachers retirement plan, St. Paul 
        Teachers Retirement Fund Association; 
           (12) the legislators retirement plan, Minnesota State 
        Retirement System; 
           (13) the elective state officers retirement plan, Minnesota 
        State Retirement System; and 
           (14) local government correctional service retirement plan, 
        Public Employees Retirement Association.  
           (c) The contract must require completion of the annual 
        actuarial valuation calculations on a fiscal year basis, with 
        the contents of the actuarial valuation calculations as 
        specified in section 356.215, and in conformity with the 
        standards for actuarial work adopted by the Legislative 
        Commission on Pensions and Retirement.  
           The contract must require completion of annual experience 
        data collection and processing and a quadrennial published 
        experience study for the plans listed in paragraph (b), clauses 
        (1), (2), and (7), as provided for in the standards for 
        actuarial work adopted by the commission.  The experience data 
        collection, processing, and analysis must evaluate the following:
           (1) individual salary progression; 
           (2) the rate of return on investments based on the current 
        asset value; 
           (3) payroll growth; 
           (4) mortality; 
           (5) retirement age; 
           (6) withdrawal; and 
           (7) disablement.  
           The contract must include provisions for the preparation of 
        cost analyses by the jointly retained actuary for proposed 
        legislation that include changes in benefit provisions or 
        funding policies prior to their consideration by the Legislative 
        Commission on Pensions and Retirement. 
           (d) The actuary retained by the joint retirement systems 
        shall annually prepare a report to the legislature, including a 
        commentary on the actuarial valuation calculations for the plans 
        named in paragraph (b) and summarizing the results of the 
        actuarial valuation calculations.  The actuary shall include 
        with the report the actuary's recommendations to the legislature 
        concerning the appropriateness of the support rates to achieve 
        proper funding of the retirement plans by the required funding 
        dates.  The actuary shall, as part of the quadrennial experience 
        study, include recommendations to the legislature on the 
        appropriateness of the actuarial valuation assumptions required 
        for evaluation in the study.  
           (e) If the actuarial gain and loss analysis in the 
        actuarial valuation calculations indicates a persistent pattern 
        of sizable gains or losses, as directed by the joint retirement 
        systems or as requested by the chair of the Legislative 
        Commission on Pensions and Retirement, the actuary shall prepare 
        a special experience study for a plan listed in paragraph (b), 
        clause (3), (4), (5), (6), (8), (9), (10), (11), (12), (13), or 
        (14), in the manner provided for in the standards for actuarial 
        work adopted by the commission. 
           (f) The term of the contract between the joint retirement 
        systems and the actuary retained may not exceed five years.  The 
        joint retirement system administrative officers shall establish 
        procedures for the consideration and selection of contract 
        bidders and the requirements for the contents of an actuarial 
        services contract under this section.  The procedures and 
        requirements must be submitted to the Legislative Commission on 
        Pensions and Retirement for review and comment prior to final 
        approval by the joint administrators.  The contract is subject 
        to the procurement procedures under chapter 16C.  The 
        consideration of bids and the selection of a consulting 
        actuarial firm by the chief administrative officers must occur 
        at a meeting that is open to the public and reasonable timely 
        public notice of the date and the time of the meeting and its 
        subject matter must be given. 
           (g) The actuarial services contract may not limit the 
        ability of the Minnesota legislature and its standing committees 
        and commissions to rely on the actuarial results of the work 
        prepared under the contract. 
           (h) The joint retirement systems shall designate one of the 
        retirement system executive directors as the actuarial services 
        contract manager. 
           Subd. 2.  [ALLOCATION OF ACTUARIAL COSTS.] (a) The 
        actuarial services contract manager shall assess each retirement 
        plan specified in subdivision 1, paragraph (b), its appropriate 
        portion of the total compensation paid to the actuary retained 
        by the joint retirement systems for the actuarial valuation 
        calculations and quadrennial experience studies.  The total 
        assessment is 100 percent of the amount of contract compensation 
        for the actuarial consulting firm for actuarial valuation 
        calculations, including any public employees police and fire 
        plan consolidation accounts of the Public Employees Retirement 
        Association established after March 1, 1999, annual experience 
        data collection and processing, and quadrennial experience 
        studies.  
           The portion of the total assessment payable by each 
        retirement system or pension plan must be determined based on 
        each plan's proportion of the actuarial services required, as 
        determined by the retained actuary, to complete the actuarial 
        valuation calculations, annual experience data collection and 
        processing, and quadrennial experience studies for all plans.  
           The assessment must be made within 30 days following the 
        end of the fiscal year and must be reported to the chief 
        administrative officers of the applicable retirement plans.  The 
        amount of the assessment is appropriated from the retirement 
        fund applicable to the retirement plan. 
           (b) The actuarial services contract manager shall assess 
        each retirement plan or each interest group which requested the 
        preparation of a cost analysis for proposed legislation the cost 
        of the actuary retained by the joint retirement systems incurred 
        in the cost analysis preparation.  With respect to interest 
        groups, the actuarial services contract manager shall obtain a 
        written commitment for the payment of the assessment in advance 
        of the cost analysis preparation and may require an advance 
        deposit or advance payment before authorizing the cost analysis 
        preparation.  The retirement plan or the interest group shall 
        pay the assessment within 30 days of the date on which the 
        assessment is billed.  The amount of the assessment is 
        appropriated from the retirement fund applicable to the 
        retirement plan for cost analyses requested by a retirement plan 
        or system. 
           (c) The actuarial services contract manager shall assess to 
        the Legislative Commission on Pensions and Retirement the cost 
        of the actuarial cost analysis preparation for the proposed 
        legislation requested by the chair of the Legislative Commission 
        on Pensions and Retirement or by the commission executive 
        director.  The commission shall pay the assessment within 30 
        days of the date on which the assessment is billed. 
           Subd. 3.  [REPORTING TO THE COMMISSION.] A copy of the 
        actuarial valuations, experience studies, and actuarial cost 
        analyses prepared by the actuary retained by the joint 
        retirement systems under the contract provided for in this 
        section must be filed with the executive director of the 
        Legislative Commission on Pensions and Retirement at the same 
        time that the document is transmitted to the actuarial services 
        contract manager or to any other document recipient. 
           Sec. 7.  Minnesota Statutes 2002, section 356.215, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REQUIREMENTS.] (a) It is the policy of the 
        legislature that it is necessary and appropriate to determine 
        annually the financial status of tax supported retirement and 
        pension plans for public employees.  To achieve this goal:  
           (1) the Legislative Commission on Pensions and Retirement 
        shall have prepared by the actuary retained by the commission 
        under section 356.214 shall prepare annual actuarial valuations 
        of the retirement plans enumerated in section 3.85 356.214, 
        subdivision 11 1, paragraph (b), and quadrennial experience 
        studies of the retirement plans enumerated in section 3.85 
        356.214, subdivision 11 1, paragraph (b), clauses (1), (2), and 
        (7); and 
           (2) the commissioner of finance may have prepared by the 
        actuary retained by the commission, two years after each set of 
        quadrennial experience studies, quadrennial projection 
        valuations of at least one of the retirement plans enumerated in 
        section 3.85 6, subdivision 11 1, paragraph (b), for which the 
        commissioner determines that the analysis may be beneficial.  
           (b) The governing or managing board or administrative 
        officials of each public pension and retirement fund or plan 
        enumerated in section 356.20, subdivision 2, clauses (9), (10), 
        and (12), shall have prepared by an approved actuary annual 
        actuarial valuations of their respective funds as provided in 
        this section.  This requirement also applies to any fund or plan 
        that is the successor to any organization enumerated in section 
        356.20, subdivision 2, or to the governing or managing board or 
        administrative officials of any newly formed retirement fund, 
        plan, or association operating under the control or supervision 
        of any public employee group, governmental unit, or institution 
        receiving a portion of its support through legislative 
        appropriations, and any local police or fire fund to which 
        section 356.216 applies. 
           Sec. 8.  Minnesota Statutes 2002, section 356.215, 
        subdivision 18, is amended to read: 
           Subd. 18.  [ESTABLISHMENT OF ACTUARIAL ASSUMPTIONS.] (a) 
        The actuarial assumptions used for the preparation of actuarial 
        valuations under this section that are other than those set 
        forth in this section may be changed only with the approval of 
        the Legislative Commission on Pensions and Retirement.  
           (b) A change in the applicable actuarial assumptions may be 
        proposed by the governing board of the applicable pension fund 
        or relief association, by the actuary retained by the 
        Legislative Commission on Pensions and Retirement joint 
        retirement systems under section 356.214, by the actuarial 
        advisor to a pension fund governed by chapter 352, 353, 354, or 
        354A, or by the actuary retained by a local police or 
        firefighters relief association governed by sections 69.77 or 
        69.771 to 69.776, if one is retained. 
           Sec. 9.  Minnesota Statutes 2002, section 422A.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ACTUARIAL VALUATION REQUIRED.] As of July 1 of 
        each year, an actuarial valuation of the retirement fund shall 
        be prepared by the commission-retained actuary retained by the 
        joint retirement systems under section 356.214 and filed in 
        conformance with the provisions and requirements of sections 
        356.215 to 356.23.  Experience studies shall be prepared at 
        those times required by statute, required by the standards for 
        actuarial work adopted by the Legislative Commission on Pensions 
        and Retirement or ordered by the board. 
           The board may contract for the services of an approved 
        actuary and fix the reasonable compensation for those services.  
        Any approved actuary retained by the board shall function as the 
        actuarial advisor to the board and may perform actuarial 
        valuations and experience studies to supplement those performed 
        by the actuary retained by the Legislative Commission on 
        Pensions and Retirement joint retirement systems under section 
        356.214.  Any supplemental actuarial valuations or experience 
        studies shall must be filed with the executive director of the 
        Legislative Commission on Pensions and Retirement.  
           Sec. 10.  [APPROPRIATION REDUCTION.] 
           The general fund appropriation in Laws 2003, First Special 
        Session chapter 1, article 1, section 2, subdivision 4, for the 
        fiscal year ending June 30, 2005, is reduced by $152,000. 
           Sec. 11.  [REPEALER.] 
           Minnesota Statutes 2002, sections 3.85, subdivisions 11 and 
        12; and 356.217, are repealed. 
           Sec. 12.  [EFFECTIVE DATE.] 
           Sections 1 to 11 are effective on the day following final 
        enactment. 
           Presented to the governor May 15, 2004 
           Signed by the governor May 19, 2004, 10:45 a.m.

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