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2000 Minnesota Session Laws

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                            CHAPTER 461-S.F.No. 2796 
                  An act relating to retirement; pension plan actuarial 
                  reporting; various public retirement plans; volunteer 
                  firefighter relief associations; Minneapolis 
                  firefighters relief association; modifying actuarial 
                  cost allocation by the legislative commission on 
                  pensions and retirement; changing the actuarial value 
                  of assets, actuarial assumptions and funding surplus 
                  recognition method; revising reemployed annuitant 
                  earnings limitations; adding certain prior 
                  correctional positions to correctional plan coverage; 
                  clarifying various former police and fire 
                  consolidation account merger provisions; authorizing 
                  certain optional annuity form elections by former 
                  consolidation account members; revising local 
                  correctional retirement plan membership eligibility; 
                  increasing local correctional retirement plan member 
                  and employer contribution rates; authorizing the 
                  purchase of nonprofit community-based corporation 
                  teaching service; expanding investment options for 
                  employer matching contribution tax sheltered 
                  annuities; modifying various volunteer firefighter 
                  relief association benefit and administration 
                  provisions; modifying judicial pension provision; 
                  modifying the marriage duration requirement for 
                  certain Minneapolis firefighter relief association 
                  survivor benefits; creating additional Minneapolis 
                  police and firefighter relief association post 
                  retirement adjustment mechanisms; resolving various 
                  individual and small group pension problems; amending 
                  Minnesota Statutes 1998, sections 16A.055, subdivision 
                  5; 69.773, subdivision 1; 122A.46, subdivision 1, and 
                  by adding a subdivision; 136F.43, subdivisions 1, 2, 
                  and 6; 136F.45, subdivision 1a; 352.115, subdivision 
                  10; 352.15, subdivision 1a; 352.91, subdivisions 3c, 
                  3d, and by adding subdivisions; 352B.01, subdivision 
                  3, and by adding a subdivision; 352D.02, subdivision 
                  1; 352D.04, subdivision 2; 352D.05, subdivision 3; 
                  352D.06; 352D.09, subdivision 5a; 353.01, subdivisions 
                  2, 6, 11a, 28, 32, and by adding a subdivision; 
                  353.15, subdivision 2; 353.27, subdivisions 4 and 12; 
                  353.33, subdivisions 2 and 6; 353.34, subdivision 1; 
                  353.37, by adding a subdivision; 353.64, subdivisions 
                  2, 3, 4, and by adding a subdivision; 353.656, 
                  subdivisions 1 and 3; 353.71, subdivision 2; 353B.11, 
                  subdivision 3; 354.05, subdivisions 2 and 35; 354.091; 
                  354.092, subdivision 2; 354.093; 354.094, subdivision 
                  1; 354.10, subdivision 2; 354.35; 354.44, subdivision 
                  5; 354.46, subdivision 2a; 354.47, subdivision 1; 
                  354.48, subdivision 6; 354.49, subdivision 1; 354.52, 
                  subdivisions 3, 4, 4a, and 4b; 354.63, subdivision 2; 
                  354A.091, subdivisions 1, 2, 3, 5, and 6; 354A.31, 
                  subdivisions 3 and 3a; 354B.23, subdivision 5a; 
                  354C.12, subdivision 1a; 354C.165; 356.215, 
                  subdivisions 1, 2, and 4d; 356.24, by adding a 
                  subdivision; 356.30, subdivision 1; 356A.01, 
                  subdivision 8; 356A.02; 356A.06, by adding a 
                  subdivision; 423B.01; 424A.001, subdivision 9; 
                  424A.02, subdivisions 3, 7, 9, 13, and by adding a 
                  subdivision; 424A.04, subdivision 1; 424A.05, 
                  subdivision 3; 490.121, subdivision 4, and by adding a 
                  subdivision; 490.123, subdivisions 1a and 1b; and 
                  490.124, subdivision 1; Minnesota Statutes 1999 
                  Supplement, sections 3.85, subdivision 12; 69.021, 
                  subdivision 7; 136F.48; 352.1155, subdivisions 1 and 
                  4; 353.01, subdivisions 2b and 10; 353.64, subdivision 
                  1; 353E.02; 353E.03; 353F.02, subdivision 5; 354.445; 
                  354.536, subdivision 1; 354A.101, subdivision 1; 
                  356.215, subdivision 4g; 356.24, subdivisions 1 and 
                  1b; and 423A.02, subdivisions 1b, 4 and 5; Laws 1965, 
                  chapter 705, section 1, subdivision 4, as amended; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapters 69; 352; 353; 354; 354A; 356; and 423B; 
                  proposing coding for new law as Minnesota Statutes, 
                  chapter 424B; repealing Minnesota Statutes 1998, 
                  sections 352.91, subdivision 4; 353.024; 354.52, 
                  subdivision 2; and 424A.02, subdivision 11; Minnesota 
                  Statutes 1999 Supplement, sections 356.24, subdivision 
                  1a; and 356.61. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1
                         ACTUARIAL ASSET VALUE CHANGE, 
                         ACTUARIAL ASSUMPTION CHANGES, 
                         ACTUARIAL METHOD CHANGES, AND 
                  ACTUARIAL REPORTING COST ALLOCATION CHANGES 
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        3.85, subdivision 12, is amended to read: 
           Subd. 12.  [ALLOCATION OF ACTUARIAL COST.] (a) The 
        commission shall assess each retirement plan specified in 
        subdivision 11, paragraph (b), its appropriate portion of the 
        compensation paid to the actuary retained by the commission for 
        the actuarial valuation calculations, quadrennial projection 
        valuations, and quadrennial experience studies.  The total 
        assessment is 100 percent of the amount of contract compensation 
        for the actuarial consulting firm retained by the commission for 
        actuarial valuation calculations, including the any public 
        employees police and fire plan consolidation accounts of the 
        public employees retirement association established before March 
        2, 1999, for which the municipality declined merger under 
        section 353.665, subdivision 1, or established after March 1, 
        1999, annual experience data collection and processing, and 
        quadrennial experience studies and quadrennial projection 
        valuations.  
           The portion of the total assessment payable by each 
        retirement system or pension plan must be determined as follows: 
           (1) Each pension plan specified in subdivision 11, 
        paragraph (b), clauses (1) to (14), must pay the following 
        indexed amount based on its total active, deferred, inactive, 
        and benefit recipient membership: 
               up to 2,000 members, inclusive         $2.55 per member 
               2,001 through 10,000 members           $1.13 per member 
               over 10,000 members                    $0.11 per member 
           The amount specified is applicable for the assessment of 
        the July 1, 1991, to June 30, 1992, fiscal year actuarial 
        compensation amounts.  For the July 1, 1992, to June 30, 1993, 
        fiscal year and subsequent fiscal year actuarial compensation 
        amounts, the amount specified must be increased at the same 
        percentage increase rate as the implicit price deflator for 
        state and local government purchases of goods and services for 
        the 12-month period ending with the first quarter of the 
        calendar year following the completion date for the actuarial 
        valuation calculations, as published by the federal Department 
        of Commerce, and rounded upward to the nearest full cent. 
           (2) The total per-member portion of the allocation must be 
        determined, and that total per-member amount must be subtracted 
        from the total amount for allocation.  Of the remainder dollar 
        amount, the following per-retirement system and per-pension plan 
        charges must be determined and the charges must be paid by the 
        system or plan: 
           (i) 37.87 percent is the total additional per-retirement 
        system charge, of which one-seventh must be paid by each 
        retirement system specified in subdivision 11, paragraph (b), 
        clauses (1), (2), (6), (7), (9), (10), and (11). 
           (ii) 62.13 percent is the total additional per-pension plan 
        charge, of which one-fourteenth must be paid by each pension 
        plan specified in subdivision 11, paragraph (b), clauses (1) to 
        (14) based on each plan's proportion of the actuarial services 
        required, as determined by the commission's retained actuary, to 
        complete the actuarial valuation calculations, annual experience 
        data collection and processing, and quadrennial experience 
        studies for all plans.  
           (b) The assessment must be made within 30 days following 
        the completion of the actuarial valuation calculations and the 
        experience analysis the end of the fiscal year and must be 
        reported to the executive director of the legislative commission 
        on pensions and retirement and 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.  Receipts from assessments must 
        be transmitted to the executive director of the legislative 
        commission on pensions and retirement and must be deposited in 
        the state treasury and credited to the general fund.  
           Sec. 2.  Minnesota Statutes 1998, section 16A.055, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RETIREMENT FUND REPORTING.] (a) The commissioner 
        may not require a public retirement fund to use financial or 
        actuarial reporting practices or procedures different from those 
        required by section 356.20 or 356.215. 
           (b) The commissioner may contract with the consulting 
        actuary retained by the legislative commission on pensions and 
        retirement for the preparation of quadrennial projection 
        valuations as required under section 356.215, subdivisions 2 and 
        2a.  The initial projection valuation under this paragraph, if 
        any, is due on May 1, 2003, and subsequent projection valuations 
        are due on May 1 each fourth year thereafter.  The commissioner 
        of finance shall assess the applicable statewide and major local 
        retirement plan or plans the cost of the quadrennial projection 
        valuation.  
           Sec. 3.  Minnesota Statutes 1998, section 356.215, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) For the purposes of 
        sections 3.85 and 356.20 to 356.23, each of the following terms 
        in the following paragraphs have the meaning given:. 
           (1) (b) "Actuarial valuation" means a set of calculations 
        prepared by the actuary retained by the legislative commission 
        on pensions and retirement if so required under section 3.85, or 
        otherwise, by an approved actuary, to determine the normal cost 
        and the accrued actuarial liabilities of a benefit plan, 
        according to the entry age actuarial cost method and based upon 
        stated assumptions including, but not limited to rates of 
        interest, mortality, salary increase, disability, withdrawal, 
        and retirement and to determine the payment necessary to 
        amortize over a stated period any unfunded accrued actuarial 
        liability disclosed as a result of the actuarial valuation of 
        the benefit plan. 
           (2) (c) "Approved actuary" means a person who is regularly 
        engaged in the business of providing actuarial services and who 
        has at least 15 years of service to major public employee 
        pension or retirement funds or who is a fellow in the society of 
        actuaries.  
           (3) (d) "Entry age actuarial cost method" means an 
        actuarial cost method under which the actuarial present value of 
        the projected benefits of each individual currently covered by 
        the benefit plan and included in the actuarial valuation is 
        allocated on a level basis over the service of the individual if 
        the benefit plan is governed by section 69.773 or over the 
        earnings of the individual if the benefit plan is governed by 
        any other law between the entry age and the assumed exit age, 
        with the portion of this actuarial present value which is 
        allocated to the valuation year to be the normal cost and the 
        portion of this actuarial present value not provided for at the 
        valuation date by the actuarial present value of future normal 
        costs to be the actuarial accrued liability, with aggregation in 
        the calculation process to be the sum of the calculated result 
        for each covered individual and with recognition given to any 
        different benefit formulas which may apply to various periods of 
        service. 
           (4) (e) "Experience study" means a report providing 
        experience data and an actuarial analysis of the adequacy of the 
        actuarial assumptions on which actuarial valuations are based. 
           (5) (f) "Current assets" means: 
           (1) for the July 1, 1999, actuarial valuation, the value of 
        all assets at cost, including realized capital gains or losses, 
        plus one-third of any unrealized capital gains or losses.; 
           (2) for the July 1, 2000, actuarial valuation, the market 
        value of all assets as of June 30, 2000, reduced by: 
           (i) 60 percent of the difference between the market value 
        of all assets as of June 30, 1999, and the actuarial value of 
        assets used in the July 1, 1999, actuarial valuation, and 
           (ii) 80 percent of the difference between the actual net 
        change in the market value of assets between June 30, 1999, and 
        June 30, 2000, and the computed increase in the market value of 
        assets between June 30, 1999, and June 30, 2000, if the assets 
        had increased at the percentage preretirement interest rate 
        assumption used in the July 1, 1999, actuarial valuation; 
           (3) for the July 1, 2001, actuarial valuation, the market 
        value of all assets as of June 30, 2001, reduced by: 
           (i) 30 percent of the difference between the market value 
        of all assets as of June 30, 1999, and the actuarial value of 
        assets used in the July 1, 1999, actuarial valuation; 
           (ii) 60 percent of the difference between the actual net 
        change in the market value of assets between June 30, 1999, and 
        June 30, 2000, and the computed increase in the market value of 
        assets between June 30, 1999, and June 30, 2000, if the assets 
        had increased at the percentage preretirement interest rate 
        assumption used in the July 1, 1999, actuarial valuation; and 
           (iii) 80 percent of the difference between the actual net 
        change in the market value of assets between June 30, 2000, and 
        June 30, 2001, and the computed increase in the market value of 
        assets between June 30, 2000, and June 30, 2001, if the assets 
        had increased at the percentage preretirement interest rate 
        assumption used in the July 1, 2000, actuarial valuation; 
           (4) for the July 1, 2002, actuarial valuation, the market 
        value of all assets as of June 30, 2002, reduced by: 
           (i) ten percent of the difference between the market value 
        of all assets as of June 30, 1999, and the actuarial value of 
        assets used in the July 1, 1999, actuarial valuation; 
           (ii) 40 percent of the difference between the actual net 
        change in the market value of assets between June 30, 1999, and 
        June 30, 2000, and the computed increase in the market value of 
        assets between June 30, 1999, and June 30, 2000, if the assets 
        had increased at the percentage preretirement interest rate 
        assumption used in the July 1, 1999, actuarial valuation; 
           (iii) 60 percent of the difference between the actual net 
        change in the market value of assets between June 30, 2000, and 
        June 30, 2001, and the computed increase in the market value of 
        assets between June 30, 2000, and June 30, 2001, if the assets 
        had increased at the percentage preretirement interest rate 
        assumption used in the July 1, 2000, actuarial valuation; and 
           (iv) 80 percent of the difference between the actual net 
        change in the market value of assets between June 30, 2001, and 
        June 30, 2002, and the computed increase in the market value of 
        assets between June 30, 2001, and June 30, 2002, if the assets 
        had increased at the percentage preretirement interest rate 
        assumption used in the July 1, 2001, actuarial valuation; or 
           (5) for any actuarial valuation after July 1, 2002, the 
        market value of all assets as of the preceding June 30, reduced 
        by: 
           (i) 20 percent of the difference between the actual net 
        change in the market value of assets between the June 30 that 
        occurred three years earlier and the June 30 that occurred four 
        years earlier and the computed increase in the market value of 
        assets over that fiscal year period if the assets had increased 
        at the percentage preretirement interest rate assumption used in 
        the actuarial valuation for the July 1 that occurred four years 
        earlier; 
           (ii) 40 percent of the difference between the actual net 
        change in the market value of assets between the June 30 that 
        occurred two years earlier and the June 30 that occurred three 
        years earlier and the computed increase in the market value of 
        assets over that fiscal year period if the assets had increased 
        at the percentage preretirement interest rate assumption used in 
        the actuarial valuation for the July 1 that occurred three years 
        earlier; 
           (iii) 60 percent of the difference between the actual net 
        change in the market value of assets between the June 30 that 
        occurred one year earlier and the June 30 that occurred two 
        years earlier and the computed increase in the market value of 
        assets over that fiscal year period if the assets had increased 
        at the percentage preretirement interest rate assumption used in 
        the actuarial valuation for the July 1 that occurred two years 
        earlier; and 
           (iv) 80 percent of the difference between the actual net 
        change in the market value of assets between the immediately 
        prior June 30 and the June 30 that occurred one year earlier and 
        the computed increase in the market value of assets over that 
        fiscal year period if the assets had increased at the percentage 
        preretirement interest rate assumption used in the actuarial 
        valuation for the July 1 that occurred one year earlier. 
           (6) (g) "Unfunded actuarial accrued liability" means the 
        total current and expected future benefit obligations, reduced 
        by the sum of current assets and the present value of future 
        normal costs. 
           (7) (h) "Pension benefit obligation" means the actuarial 
        present value of credited projected benefits, determined as the 
        actuarial present value of benefits estimated to be payable in 
        the future as a result of employee service attributing an equal 
        benefit amount, including the effect of projected salary 
        increases and any step rate benefit accrual rate differences, to 
        each year of credited and expected future employee service. 
           Sec. 4.  Minnesota Statutes 1998, 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 
        annual actuarial valuations of the retirement plans enumerated 
        in section 3.85, subdivision 11, paragraph (b), and quadrennial 
        experience studies of the retirement plans enumerated in section 
        3.85, subdivision 11, 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, subdivision 11, paragraph (b), for which it 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 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 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 coming within 
        the provisions of section 356.216. 
           (b) Subd. 2a.  [PROJECTION VALUATION REQUIREMENTS.] A 
        quadrennial projection valuation required under paragraph 
        (a) subdivision 2 is intended to serve as an additional 
        analytical tool with which policy makers may assess the future 
        funding status of public plans through forecasting and testing 
        various potential outcomes over time if certain plan assumptions 
        or valuation methods were to be modified.  In consultation with 
        the executive director of the legislative commission on pensions 
        and retirement, the retirement fund directors, the state 
        economist, the state demographer, the commissioner of finance, 
        and the commissioner of employee relations, the actuary retained 
        by the legislative commission on pensions and retirement shall 
        perform the quadrennial projection valuations on behalf of the 
        commissioner of finance, testing future implications for plan 
        funding by modifying assumptions and methods currently in 
        place.  The commission-retained actuary shall provide advice to 
        the commission commissioner as to the periods over which such 
        projections should be made, the nature and scope of the 
        scenarios to be analyzed, and the measures of funding status to 
        be employed, and shall report the results of these analyses in 
        the same manner as for quadrennial experience studies. 
           Sec. 5.  Minnesota Statutes 1998, section 356.215, 
        subdivision 4d, is amended to read: 
           Subd. 4d.  [INTEREST AND SALARY ASSUMPTIONS.] (a) The 
        actuarial valuation must use the applicable following 
        preretirement interest assumption and the applicable following 
        postretirement interest assumption: 
                                           preretirement  postretirement 
                                           interest rate  interest rate 
                    plan                      assumption     assumption 
             general state employees 
                 retirement plan                  8.5%          5.0 6.0% 
             correctional state employees 
                 retirement plan                  8.5           5.0 6.0 
             state patrol retirement plan         8.5           5.0 6.0 
             legislators retirement plan          8.5           5.0 6.0 
             elective state officers
                 retirement plan                  8.5           5.0 6.0 
             judges retirement plan               8.5           5.0 6.0 
             general public employees 
                 retirement plan                  8.5           5.0 6.0 
             public employees police and fire 
                 retirement plan                  8.5           5.0 6.0 
             local government correctional 
                 service retirement plan          8.5           5.0 6.0 
             teachers retirement plan             8.5           5.0 6.0 
             Minneapolis employees 
                 retirement plan                  6.0           5.0 
             Duluth teachers retirement plan      8.5           8.5 
             Minneapolis teachers retirement
                 plan                             8.5           8.5 
             St. Paul teachers retirement 
                 plan                             8.5           7.5 8.5 
             Minneapolis police relief 
                 association                      6.0           6.0 
             other local police relief 
                 associations                     5.0           5.0 
             Minneapolis fire department 
                 relief association               6.0           6.0 
             other local salaried firefighter 
                 relief associations              5.0           5.0 
             local monthly benefit volunteer 
                 firefighter relief associations  5.0           5.0 
           (b) The actuarial valuation must use the applicable 
        following single rate future salary increase assumption or the 
        applicable following graded rate future salary increase 
        assumption: 
           (1) single rate future salary increase assumption 
                                                    future salary 
                    plan                          increase assumption 
             legislators retirement plan                  5.0% 
             elective state officers retirement 
                 plan                                     5.0 
             judges retirement plan                       5.0 
             Minneapolis employees retirement plan        4.0 
             Minneapolis police relief association        4.0 
             other local police relief associations       3.5 
             Minneapolis fire department relief 
                 association                              4.0 
             other local salaried firefighter relief 
                 associations                             3.5 
           (2) modified single rate future salary increase assumption 
                                                    future salary 
                       plan                       increase assumption
             Minneapolis employees             prior calendar year amount
               retirement plan                increased by 1.0198 percent
                                              to prior fiscal year date
                                              and by 4.0 percent annually
                                              for each future year
           (3) select and ultimate future salary increase assumption 
        or graded rate future salary increase assumption 
                                                     future salary 
                       plan                       increase assumption 
             general state employees             select calculation and
                 retirement plan                      assumption A 
             correctional state employees 
                 retirement plan                      assumption A H 
             state patrol retirement plan             assumption A H 
             general public employees            select calculation and
                 retirement plan                      assumption B 
             public employees police and fire 
                 fund retirement plan                 assumption C 
             local government correctional service 
                 retirement plan                      assumption C H 
             teachers retirement plan                 assumption D 
             Duluth teachers retirement plan          assumption E 
             Minneapolis teachers retirement plan     assumption F 
             St. Paul teachers retirement plan        assumption G 
             
             select calculation:
             during the ten-year select period, 0.2 percent is
             multiplied by the result of ten minus T, where T is 
             the number of completed years of service, and is added
             to the applicable future salary increase assumption.
             
             future salary increase assumption:
             
             age    A      B      C      D      E      F      G      H 
             16  7.2500%  8.71% 11.50%  7.25%  8.00%  7.50%  7.25% 
                 6.95     6.95          8.20                       7.7500
             17  7.2500   8.71  11.50   7.25   8.00   7.50   7.25 
                 6.90     6.90          8.15                       7.7500
             18  7.2500   8.70  11.50   7.25   8.00   7.50   7.25 
                 6.85     6.85          8.10                       7.7500
             19  7.2500   8.70  11.50   7.25   8.00   7.50   7.25 
                 6.80     6.80          8.05                       7.7500
             20  7.2500   7.70  11.50   7.25   8.00   7.50   7.25 
                 6.75     6.75          8.00                       7.7500
             21  7.1454   7.70  11.50   7.25   8.00   7.50   7.25 
                 6.70     6.70          7.95                       7.1454
             22  7.1094   7.70  11.00   7.25   8.00   7.50   7.25 
                 6.65     6.65          7.90                       7.0725
             24  7.0363   7.70  10.00   7.15   7.80   7.30   7.20 
                 6.66     6.55          7.80                       7.0363
             25  7.0000   7.60   9.50   7.10   7.70   7.20   7.15 
                 6.50     6.50          7.75                       7.0000
             26  7.0000   7.51   9.20   7.05   7.60   7.10   7.10 
                 6.45     6.45          7.70                       7.0000
             27  7.0000   7.39   8.90   7.00   7.50   7.00   7.05 
                 6.40     6.40          7.65                       7.0000
             28  7.0000   7.30   8.60   7.00   7.40   6.90   7.00 
                 6.35     6.35          7.60                       7.0000
             29  7.0000   7.20   8.30   7.00   7.30   6.80   6.95 
                 6.30     6.30          7.55                       7.0000
             30  7.0000   7.20   8.00   7.00   7.20   6.70   6.90 
                 6.25     6.30          7.50                       7.0000
             31  7.0000   7.10   7.80   7.00   7.10   6.60   6.85 
                 6.20     6.25          7.45                       7.0000
             32  7.0000   7.10   7.60   7.00   7.00   6.50   6.80 
                 6.15     6.21          7.40                       7.0000
             33  7.0000   7.00   7.40   7.00   6.90   6.40   6.75 
                 6.10     6.17          7.30                       7.0000
             34  7.0000   7.00   7.20   7.00   6.80   6.30   6.70 
                 6.05     6.09          7.10                       7.0000
             35  7.0000   6.90   7.00   7.00   6.70   6.20   6.65 
                 6.00     6.05                                     7.0000
             36  6.9019   6.80   6.80   7.00   6.60   6.10   6.60 
                 6.95     6.01          6.85                       6.9019
             37  6.8074   6.70   6.60   7.00   6.50   6.00   6.55 
                 5.90     5.97          6.70                       6.8074
             38  6.7125   6.60   6.40   6.90   6.40   5.90   6.50 
                 5.85     5.93          6.55                       6.7125
             39  6.6054   6.50   6.20   6.80   6.30   5.80   6.40 
                 5.80     5.89          6.40                       6.6054
             40  6.5000   6.40   6.00   6.70   6.20   5.70   6.30 
                 5.75     5.85          6.25                       6.5000
             41  6.3540   6.30   5.90   6.60   6.10   5.60   6.20 
                 5.70     5.81          6.10                       6.3540
             42  6.2087   6.30   5.80   6.50   6.00   5.50   6.10 
                 5.65     5.77          5.95                       6.2087
             43  6.0622   6.30   5.70   6.35   5.90   5.45   6.00 
                 5.60     5.73          5.80                       6.0622
             44  5.9048   6.20   5.60   6.20   5.80   5.40   5.90 
                 5.55     5.69          5.65                       5.9048
             45  5.7500   6.20   5.50   6.05   5.70   5.35   5.80 
                 5.50     5.65          5.50                       5.7500
             46  5.6940   6.09   5.45   5.90   5.60   5.30   5.70 
                 5.45     5.62          5.45                       5.6940
             47  5.6375   6.00   5.40   5.75   5.50   5.25   5.65 
                 5.40     5.59          5.40                       5.6375
             48  5.5822   5.90   5.35   5.70   5.45   5.20   5.60 
                 5.35     5.56          5.35                       5.5822
             49  5.5405   5.80   5.30   5.65   5.40   5.15   5.55 
                 5.30     5.53          5.30                       5.5404
             50  5.5000   5.70   5.25   5.60   5.35   5.10   5.50 
                 5.25     5.50          5.25                       5.5000
             51  5.4384   5.70   5.25   5.55   5.30   5.05   5.45 
                 5.20     5.45          5.20                       5.4384
             52  5.3776   5.70   5.25   5.50   5.25   5.00   5.40 
                 5.15     5.40          5.15                       5.3776
             53  5.3167   5.70   5.25   5.45   5.25   5.00   5.35 
                 5.10     5.35          5.10                       5.3167
             54  5.2826   5.70   5.25   5.40   5.25   5.00   5.30 
                 5.05     5.30          5.05                       5.2826
             55  5.2500   5.70   5.25   5.35   5.25   5.00   5.25 
                 5.00     5.25          5.00                       5.2500
             56  5.2500   5.70   5.25   5.30   5.25   5.00   5.25 
                 5.00     5.20          5.00                       5.2500
             57  5.2500   5.70   5.25   5.25   5.25   5.00   5.25 
                 5.00     5.15          5.00                       5.2500
             58  5.2500   5.70   5.25   5.25   5.25   5.00   5.25 
                 5.00     5.10          5.00                       5.2500
             59  5.2500   5.70   5.25   5.25   5.25   5.00   5.25 
                 5.00     5.05          5.00                       5.2500
             60  5.2500   5.00   5.25   5.25   5.25   5.00   5.25 
                 5.00                   5.00                       5.2500
             61  5.2500   5.00   5.25   5.25   5.25   5.00   5.25 
                 5.00                   5.00                       5.2500
             62  5.2500   5.00   5.25   5.25   5.25   5.00   5.25 
                 5.00                   5.00                       5.2500
             63  5.2500   5.00   5.25   5.25   5.25   5.00   5.25 
                 5.00                   5.00                       5.2500
             64  5.2500   5.00   5.25   5.25   5.25   5.00   5.25 
                 5.00                   5.00                       5.2500
             65  5.2500   5.00   5.25   5.25   5.25   5.00   5.25 
                 5.00                   5.00                       5.2500
             66  5.2500   5.00   5.25   5.25   5.25   5.00   5.25 
                 5.00                   5.00                       5.2500
             67  5.2500   5.00   5.25   5.25   5.25   5.00   5.25 
                 5.00                   5.00                       5.2500
             68  5.2500   5.00   5.25   5.25   5.25   5.00   5.25 
                 5.00                   5.00                       5.2500
             69  5.2500   5.00   5.25   5.25   5.25   5.00   5.25 
                 5.00                   5.00                       5.2500
             70  5.2500   5.00   5.25   5.25   5.25   5.00   5.25 
                 5.00                   5.00                       5.2500
             71  5.00     5.00          5.00
           (c) The actuarial valuation must use the applicable 
        following payroll growth assumption for calculating the 
        amortization requirement for the unfunded actuarial accrued 
        liability where the amortization retirement is calculated as a 
        level percentage of an increasing payroll: 
                                                         payroll growth
                          plan                             assumption 
             general state employees retirement plan          5.00% 
             correctional state employees retirement plan     5.00 
             state patrol retirement plan                     5.00 
             legislators retirement plan                      5.00 
             elective state officers retirement plan          5.00 
             judges retirement plan                           5.00 
             general public employees retirement plan         6.00 
             public employees police and fire 
                 retirement plan                              6.00 
             local government correctional service 
                 retirement plan                              6.00 
             teachers retirement plan                         5.00 
             Duluth teachers retirement plan                  5.00 
             Minneapolis teachers retirement plan             5.00 
             St. Paul teachers retirement plan                5.00 
           Sec. 6.  Minnesota Statutes 1999 Supplement, section 
        356.215, subdivision 4g, is amended to read: 
           Subd. 4g.  [AMORTIZATION CONTRIBUTIONS.] (a) In addition to 
        the exhibit indicating the level normal cost, the actuarial 
        valuation must contain an exhibit indicating the additional 
        annual contribution sufficient to amortize the unfunded 
        actuarial accrued liability.  For funds governed by chapters 3A, 
        352, 352B, 352C, 353, 354, 354A, and 490, the additional 
        contribution must be calculated on a level percentage of covered 
        payroll basis by the established date for full funding in effect 
        when the valuation is prepared.  For funds governed by chapter 
        3A, sections 352.90 through 352.951, chapters 352B, 352C, 
        sections 353.63 through 353.68, and chapters 353C, 354A, and 
        490, the level percent additional contribution must be 
        calculated assuming annual payroll growth of 6.5 percent.  For 
        funds governed by sections 352.01 through 352.86 and chapter 
        354, the level percent additional contribution must be 
        calculated assuming an annual payroll growth of five percent.  
        For the fund governed by sections 353.01 through 353.46, the 
        level percent additional contribution must be calculated 
        assuming an annual payroll growth of six percent.  For all other 
        funds, the additional annual contribution must be calculated on 
        a level annual dollar amount basis. 
           (b) For any fund other than the Minneapolis employees 
        retirement fund, after the first actuarial valuation date 
        occurring after June 1, 1989, if there has not been a change in 
        the actuarial assumptions used for calculating the actuarial 
        accrued liability of the fund, a change in the benefit plan 
        governing annuities and benefits payable from the fund, a change 
        in the actuarial cost method used in calculating the actuarial 
        accrued liability of all or a portion of the fund, or a 
        combination of the three, which change or changes by themselves 
        without inclusion of any other items of increase or decrease 
        produce a net increase in the unfunded actuarial accrued 
        liability of the fund, the established date for full funding for 
        the first actuarial valuation made after June 1, 1989, and each 
        successive actuarial valuation is the first actuarial valuation 
        date occurring after June 1, 2020.  
           (c) For any fund or plan other than the Minneapolis 
        employees retirement fund, after the first actuarial valuation 
        date occurring after June 1, 1989, if there has been a change in 
        any or all of the actuarial assumptions used for calculating the 
        actuarial accrued liability of the fund, a change in the benefit 
        plan governing annuities and benefits payable from the fund, a 
        change in the actuarial cost method used in calculating the 
        actuarial accrued liability of all or a portion of the fund, or 
        a combination of the three, and the change or changes, by 
        themselves and without inclusion of any other items of increase 
        or decrease, produce a net increase in the unfunded actuarial 
        accrued liability in the fund, the established date for full 
        funding must be determined using the following procedure:  
           (i) the unfunded actuarial accrued liability of the fund 
        must be determined in accordance with the plan provisions 
        governing annuities and retirement benefits and the actuarial 
        assumptions in effect before an applicable change; 
           (ii) the level annual dollar contribution or level 
        percentage, whichever is applicable, needed to amortize the 
        unfunded actuarial accrued liability amount determined under 
        item (i) by the established date for full funding in effect 
        before the change must be calculated using the interest 
        assumption specified in subdivision 4d in effect before the 
        change; 
           (iii) the unfunded actuarial accrued liability of the fund 
        must be determined in accordance with any new plan provisions 
        governing annuities and benefits payable from the fund and any 
        new actuarial assumptions and the remaining plan provisions 
        governing annuities and benefits payable from the fund and 
        actuarial assumptions in effect before the change; 
           (iv) the level annual dollar contribution or level 
        percentage, whichever is applicable, needed to amortize the 
        difference between the unfunded actuarial accrued liability 
        amount calculated under item (i) and the unfunded actuarial 
        accrued liability amount calculated under item (iii) over a 
        period of 30 years from the end of the plan year in which the 
        applicable change is effective must be calculated using the 
        applicable interest assumption specified in subdivision 4d in 
        effect after any applicable change; 
           (v) the level annual dollar or level percentage 
        amortization contribution under item (iv) must be added to the 
        level annual dollar amortization contribution or level 
        percentage calculated under item (ii); 
           (vi) the period in which the unfunded actuarial accrued 
        liability amount determined in item (iii) is amortized by the 
        total level annual dollar or level percentage amortization 
        contribution computed under item (v) must be calculated using 
        the interest assumption specified in subdivision 4d in effect 
        after any applicable change, rounded to the nearest integral 
        number of years, but not to exceed 30 years from the end of the 
        plan year in which the determination of the established date for 
        full funding using the procedure set forth in this clause is 
        made and not to be less than the period of years beginning in 
        the plan year in which the determination of the established date 
        for full funding using the procedure set forth in this clause is 
        made and ending by the date for full funding in effect before 
        the change; and 
           (vii) the period determined under item (vi) must be added 
        to the date as of which the actuarial valuation was prepared and 
        the date obtained is the new established date for full funding.  
           (d) For the Minneapolis employees retirement fund, the 
        established date for full funding is June 30, 2020. 
           (e) For the following retirement plans for which the annual 
        actuarial valuation indicates an excess of valuation assets over 
        the actuarial accrued liability, the valuation assets in excess 
        of the actuarial accrued liability must be recognized in the 
        following manner: 
           (1) the public employees retirement association police and 
        fire plan, the valuation assets in excess of the actuarial 
        accrued liability serve to reduce as a reduction in the current 
        contribution requirements by an amount equal to the amortization 
        of the excess expressed as a level percentage of pay over a 
        30-year period beginning anew with each annual actuarial 
        valuation of the plan; and 
           (2) the correctional employees retirement plan of the 
        Minnesota state retirement system, and the state patrol 
        retirement plan, an excess of valuation assets over actuarial 
        accrued liability must be amortized in the same manner over the 
        same period as an unfunded actuarial accrued liability but must 
        serve to reduce the required contribution instead of increasing 
        it. 
           Sec. 7.  [EFFECTIVE DATE.] 
           (a) Section 1 is effective for actuarial valuation costs 
        incurred on or after July 1, 2000.  
           (b) Sections 2 to 6 are effective on June 30, 2000, for 
        actuarial valuations on or after that date. 

                                   ARTICLE 2 
                    REEMPLOYED ANNUITANT EARNINGS LIMITATION 
                                   REVISIONS
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        136F.48, is amended to read: 
           136F.48 [EMPLOYER-PAID HEALTH INSURANCE.] 
           (a) This section applies to a person who:  
           (1) retires from the Minnesota state colleges and 
        universities system with at least ten years of combined service 
        credit in a system under the jurisdiction of the board of 
        trustees of the Minnesota state colleges and universities; 
           (2) was employed on a full-time basis immediately preceding 
        retirement as a faculty member or as an unclassified 
        administrator in the Minnesota state colleges and universities 
        system; 
           (3) begins drawing a retirement benefit from the individual 
        retirement account plan or an annuity from the teachers 
        retirement association, from the general state employees 
        retirement plan or the unclassified state employees retirement 
        program of the Minnesota state retirement system, or from a 
        first class city teacher retirement plan; and 
           (4) returns to work on not less than a one-third time basis 
        and not more than a two-thirds time basis in the system from 
        which the person retired under an agreement in which the person 
        may not earn a salary of more than $35,000 in a calendar year 
        from employment after retirement in the system from which the 
        person retired.  
           (b) Initial participation, the amount of time worked, and 
        the duration of participation under this section must be 
        mutually agreed upon by the president of the institution where 
        the person returns to work and the employee.  The president may 
        require up to one-year notice of intent to participate in the 
        program as a condition of participation under this section.  The 
        president shall determine the time of year the employee shall 
        work.  The employer or the president may not require a person to 
        waive any rights under a collective bargaining agreement as a 
        condition of participation under this section.  
           (c) For a person eligible under paragraphs (a) and (b), the 
        employing board shall make the same employer contribution for 
        hospital, medical, and dental benefits as would be made if the 
        person were employed full time.  
           (d) For work under paragraph (a), a person must receive a 
        percentage of the person's salary at the time of retirement that 
        is equal to the percentage of time the person works compared to 
        full-time work.  
           (e) If a collective bargaining agreement covering a person 
        provides for an early retirement incentive that is based on age, 
        the incentive provided to the person must be based on the 
        person's age at the time employment under this section ends.  
        However, the salary used to determine the amount of the 
        incentive must be the salary that would have been paid if the 
        person had been employed full time for the year immediately 
        preceding the time employment under this section ends. 
           (f) A person who returns to work under this section is a 
        member of the appropriate bargaining unit and is covered by the 
        appropriate collective bargaining contract.  Except as provided 
        in this section, the person's coverage is subject to any part of 
        the contract limiting rights of part-time employees. 
           Sec. 2.  Minnesota Statutes 1998, section 352.115, 
        subdivision 10, is amended to read: 
           Subd. 10.  [REEMPLOYMENT OF ANNUITANT.] (a) If any retired 
        employee again becomes entitled to receive salary or wages from 
        the state, or any employer who employs state employees as that 
        term is defined in section 352.01, subdivision 2, other than 
        salary or wages received as a temporary employee of the 
        legislature during a legislative session, the annuity or 
        retirement allowance shall cease when the retired employee has 
        earned an amount equal to the annual maximum earnings allowable 
        for that age for the continued receipt of full benefit amounts 
        monthly under the federal old age, survivors, and disability 
        insurance program as set by the secretary of health and human 
        services under United States Code, title 42, section 403, in any 
        calendar year.  If the retired employee has not yet reached the 
        minimum age for the receipt of social security benefits, the 
        maximum earnings for the retired employee shall be equal to the 
        annual maximum earnings allowable for the minimum age for the 
        receipt of social security benefits.  
           (b) The balance of the annual retirement annuity after 
        cessation must be handled or disposed of as provided in section 
        356.58.  
           (c) The annuity must be resumed when state service ends, 
        or, if the retired employee is still employed at the beginning 
        of the next calendar year, at the beginning of that calendar 
        year, and payment must again end when the retired employee has 
        earned the applicable reemployment earnings maximum specified in 
        this subdivision.  No payroll deductions for the retirement fund 
        shall be made from the earnings of a reemployed retired 
        employee.  If the retired employee is granted a sick leave 
        without pay, but not otherwise, the annuity or retirement 
        allowance must be resumed during the period of sick leave.  
           (d) No payroll deductions for the retirement fund may be 
        made from the earnings of a reemployed retired employee. 
           (e) No change shall be made in the monthly amount of an 
        annuity or retirement allowance because of the reemployment of 
        an annuitant. 
           Sec. 3.  Minnesota Statutes 1999 Supplement, section 
        352.1155, subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY.] Except as indicated in 
        subdivision 4, the annuity reduction provisions of section 
        352.115, subdivision 10, do not apply to a person who: 
           (1) retires from the Minnesota state colleges and 
        universities system with at least ten years of combined service 
        credit in a system under the jurisdiction of the board of 
        trustees of the Minnesota state colleges and universities; 
           (2) was employed on a full-time basis immediately preceding 
        retirement as a faculty member or as an unclassified 
        administrator in that system; 
           (3) begins drawing an annuity from the general state 
        employees retirement plan of the Minnesota state retirement 
        system; and 
           (4) returns to work on not less than a one-third time basis 
        and not more than a two-thirds time basis in the system from 
        which the person retired under an agreement in which the person 
        may not earn a salary of more than $35,000 $46,000 in a calendar 
        year from employment after retirement in the system from which 
        the person retired.  
           Sec. 4.  Minnesota Statutes 1999 Supplement, section 
        352.1155, subdivision 4, is amended to read: 
           Subd. 4.  [EXEMPTION LIMIT.] For a person eligible under 
        this section who earns more than $35,000 $46,000 in a calendar 
        year from reemployment in the Minnesota state colleges and 
        universities system following retirement, the annuity reduction 
        provisions of section 352.115, subdivision 10, apply only to 
        income over $35,000 $46,000. 
           Sec. 5.  Minnesota Statutes 1998, section 353.37, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [DISPOSITION OF SUSPENSION OR REDUCTION AMOUNT.] 
        The balance of the annual retirement annuity after suspension or 
        the amount of the retirement annuity reduction must be handled 
        or disposed of as provided in section 356.58. 
           Sec. 6.  Minnesota Statutes 1998, section 354.44, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RESUMPTION OF TEACHING SERVICE AFTER 
        RETIREMENT.] (a) Any person who retired under the provisions of 
        this chapter and has thereafter resumed teaching in any employer 
        unit to which this chapter applies is eligible to continue to 
        receive payments in accordance with the annuity except that 
        annuity payments must be reduced during the calendar year 
        immediately following any calendar year in which the person's 
        income from the teaching service is in an amount greater than 
        the annual maximum earnings allowable for that age for the 
        continued receipt of full benefit amounts monthly under the 
        federal old age, survivors and disability insurance program as 
        set by the secretary of health and human services under United 
        States Code, title 42, section 403.  The amount of the reduction 
        must be one-half of the amount in excess of the applicable 
        reemployment income maximum specified in this subdivision and 
        must be deducted from the annuity payable for the calendar year 
        immediately following the calendar year in which the excess 
        amount was earned.  If the person has not yet reached the 
        minimum age for the receipt of social security benefits, the 
        maximum earnings for the person must be equal to the annual 
        maximum earnings allowable for the minimum age for the receipt 
        of social security benefits.  
           (b) If the person is retired for only a fractional part of 
        the calendar year during the initial year of retirement, the 
        maximum reemployment income specified in this subdivision must 
        be prorated for that calendar year.  
           (c) After a person has reached the age of 70, no 
        reemployment income maximum is applicable regardless of the 
        amount of income. 
           (d) The amount of the retirement annuity reduction must be 
        handled or disposed of as provided in section 356.58. 
           (e) For the purpose of this subdivision, income from 
        teaching service includes, but is not limited to:  
           (a) (1) all income for services performed as a consultant 
        or an independent contractor for an employer unit covered by the 
        provisions of this chapter; and 
           (b) (2) the greater of either the income received or an 
        amount based on the rate paid with respect to an administrative 
        position, consultant, or independent contractor in an employer 
        unit with approximately the same number of pupils and at the 
        same level as the position occupied by the person who resumes 
        teaching service.  
           Sec. 7.  Minnesota Statutes 1999 Supplement, section 
        354.445, is amended to read: 
           354.445 [NO ANNUITY REDUCTION.] 
           (a) The annuity reduction provisions of section 354.44, 
        subdivision 5, do not apply to a person who: 
           (1) retires from the Minnesota state colleges and 
        universities system with at least ten years of combined service 
        credit in a system under the jurisdiction of the board of 
        trustees of the Minnesota state colleges and universities; 
           (2) was employed on a full-time basis immediately preceding 
        retirement as a faculty member or as an unclassified 
        administrator in that system; 
           (3) begins drawing an annuity from the teachers retirement 
        association; and 
           (4) returns to work on not less than a one-third time basis 
        and not more than a two-thirds time basis in the system from 
        which the person retired under an agreement in which the person 
        may not earn a salary of more than $35,000 $46,000 in a calendar 
        year from employment after retirement in the system from which 
        the person retired. 
           (b) Initial participation, the amount of time worked, and 
        the duration of participation under this section must be 
        mutually agreed upon by the president of the institution where 
        the person returns to work and the employee.  The president may 
        require up to one-year notice of intent to participate in the 
        program as a condition of participation under this section.  The 
        president shall determine the time of year the employee shall 
        work.  The employer or the president may not require a person to 
        waive any rights under a collective bargaining agreement as a 
        condition of participation under this section.  
           (c) Notwithstanding any law to the contrary, a person 
        eligible under paragraphs (a) and (b) may not, based on 
        employment to which the waiver in this section applies, earn 
        further service credit in a Minnesota public defined benefit 
        plan and is not eligible to participate in a Minnesota public 
        defined contribution plan, other than a volunteer fire plan 
        governed by chapter 424A.  No employer or employee contribution 
        to any of these plans may be made on behalf of such a person. 
           (d) For a person eligible under paragraphs (a) and (b) who 
        earns more than $35,000 $46,000 in a calendar year from 
        employment after retirement due to employment by the Minnesota 
        state colleges and universities system, the annuity reduction 
        provisions of section 354.44, subdivision 5, apply only to 
        income over $35,000 $46,000. 
           (e) A person who returns to work under this section is a 
        member of the appropriate bargaining unit and is covered by the 
        appropriate collective bargaining contract.  Except as provided 
        in this section, the person's coverage is subject to any part of 
        the contract limiting rights of part-time employees. 
           Sec. 8.  Minnesota Statutes 1998, section 354A.31, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RESUMPTION OF TEACHING AFTER COMMENCEMENT OF A 
        RETIREMENT ANNUITY.] (a) Any person who retired and is receiving 
        a coordinated program retirement annuity under the provisions of 
        sections 354A.31 to 354A.41 or any person receiving a basic 
        program retirement annuity under the governing sections in the 
        articles of incorporation or bylaws and who has resumed teaching 
        service for the school district in which the teachers retirement 
        fund association exists is entitled to continue to receive 
        retirement annuity payments, except that annuity payments must 
        be reduced during the calendar year immediately following the 
        calendar year in which the person's income from the teaching 
        service is in an amount greater than the annual maximum earnings 
        allowable for that age for the continued receipt of full benefit 
        amounts monthly under the federal old age, survivors, and 
        disability insurance program as set by the secretary of health 
        and human services under United States Code, title 42, section 
        403.  The amount of the reduction must be one-third the amount 
        in excess of the applicable reemployment income maximum 
        specified in this subdivision and must be deducted from the 
        annuity payable for the calendar year immediately following the 
        calendar year in which the excess amount was earned.  If the 
        person has not yet reached the minimum age for the receipt of 
        social security benefits, the maximum earnings for the person 
        must be equal to the annual maximum earnings allowable for the 
        minimum age for the receipt of social security benefits. 
           (b) If the person is retired for only a fractional part of 
        the calendar year during the initial year of retirement, the 
        maximum reemployment income specified in this subdivision must 
        be prorated for that calendar year. 
           (c) After a person has reached the age of 70, no 
        reemployment income maximum is applicable regardless of the 
        amount of any compensation received for teaching service for the 
        school district in which the teachers retirement fund 
        association exists.  
           (d) The amount of the retirement annuity reduction must be 
        handled or disposed of as provided in section 356.58. 
           (e) For the purpose of this subdivision, income from 
        teaching service includes:  (i) all income for services 
        performed as a consultant or independent contractor; or income 
        resulting from working with the school district in any capacity; 
        and (ii) the greater of either the income received or an amount 
        based on the rate paid with respect to an administrative 
        position, consultant, or independent contractor in the school 
        district in which the teachers retirement fund association 
        exists and at the same level as the position occupied by the 
        person who resumes teaching service. 
           Sec. 9.  Minnesota Statutes 1998, section 354A.31, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [NO ANNUITY REDUCTION.] (a) The annuity 
        reduction provisions of subdivision 3 do not apply to a person 
        who: 
           (1) retires from the technical college system with at least 
        ten years of service credit in the system from which the person 
        retires; 
           (2) was employed on a full-time basis immediately preceding 
        retirement as a technical college faculty member; 
           (3) begins drawing an annuity from a first class city 
        teachers retirement association; and 
           (4) returns to work on not less than a one-third time basis 
        and not more than a two-thirds time basis in the technical 
        college system under an agreement in which the person may not 
        earn a salary of more than $35,000 $46,000 in a calendar year 
        from the technical college system. 
           (b) Initial participation, the amount of time worked, and 
        the duration of participation under this section must be 
        mutually agreed upon by the employer and the employee.  The 
        employer may require up to a one-year notice of intent to 
        participate in the program as a condition of participation under 
        this section.  The employer shall determine the time of year the 
        employee shall work. 
           (c) Notwithstanding any law to the contrary, a person 
        eligible under paragraphs (a) and (b) may not earn further 
        service credit in a first class city teachers retirement 
        association and is not eligible to participate in the individual 
        retirement account plan or the supplemental retirement plan 
        established in chapter 354B as a result of service under this 
        section.  No employer or employee contribution to any of these 
        plans may be made on behalf of such a person. 
           Sec. 10.  [356.58] [DISPOSITION OF AMOUNT IN EXCESS OF 
        REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.] 
           Subdivision 1.  [APPLICATION.] This section applies to the 
        balance of annual retirement annuities on the amount of 
        retirement annuity reductions after reemployed annuitant 
        earnings limitations for retirement plans governed by sections 
        352.115, subdivision 10; 353.37; 354.44, subdivision 5; or 
        354A.31, subdivision 3. 
           Subd. 2.  [RECORDKEEPING; REPORTING.] The chief 
        administrative officer of each retirement plan shall keep 
        records for each reemployed annuitant of the amount of the 
        annuity reduction.  This amount must be reported to each member 
        at least once each year. 
           Subd. 3.  [PAYMENT.] (a) Upon the retired member attaining 
        the age of 65 years or upon the first day of the month next 
        following the month occurring one year after the termination of 
        the reemployment that gave rise to the limitation, whichever is 
        later, and the filing of a written application, the retired 
        member is entitled the payment, in a lump sum, of the value of 
        the person's amount under subdivision 2, plus interest at the 
        compound annual rate of six percent from the date that the 
        amount was deducted from the retirement annuity to the date of 
        payment. 
           (b) The written application must be on a form prescribed by 
        the chief administrative officer of the applicable retirement 
        plan. 
           (c) If the retired member dies before the payment provided 
        for in paragraph (a) is made, the amount is payable, upon 
        written application, to the deceased person's surviving spouse, 
        or if none, to the deceased person's designated beneficiary, or 
        if none, to the deceased person's estate. 
           Sec. 11.  [REPORT.] 
           The Minnesota state colleges and universities board shall 
        report to the legislative commission on pensions and retirement 
        by November 15, 2000, on the utilization of the annuitant 
        employment program authorized by Minnesota Statutes, sections 
        136F.48; 352.1155, subdivisions 1 and 4; and 354.445.  The 
        report must include an evaluation by institutions that have used 
        the program regarding its effectiveness as a human resource 
        management tool.  
           Sec. 12.  [EFFECTIVE DATE.] 
           Sections 1 to 11 are effective on July 1, 2000. 

                                   ARTICLE 3
                           ADMINISTRATIVE PROVISIONS
           Section 1.  Minnesota Statutes 1998, section 352.15, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [AUTOMATIC DEPOSITS.] The executive director may 
        pay an remit, through an automatic deposit system, annuity, 
        benefit, or refund payments only to a banking financial 
        institution, qualified under chapter 48, associated with the 
        National Automated Clearinghouse Association or a comparable 
        successor organization that is trustee for a person eligible to 
        receive the annuity, benefit, or refund.  Upon the request of a 
        retired, disabled, the retiree, disabilitant, survivor, or 
        former employee, the executive director may mail remit the 
        annuity, benefit, or refund check to a banking institution, 
        savings association, or credit union the applicable financial 
        institution for deposit to in the employee's person's account 
        or joint account.  The board of directors may prescribe the 
        conditions under which payments will be made.  
           Sec. 2.  Minnesota Statutes 1998, section 352B.01, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ALLOWABLE SERVICES SERVICE.] (a) "Allowable 
        service" means:  
           (a) (1) for members defined in subdivision 2, clause (a), 
        monthly service is granted for any month for which payments have 
        been made to the state patrol retirement fund, and 
           (b) (2) for members defined in subdivision 2, clauses (b) 
        and (c), service for which payments have been made to the state 
        patrol retirement fund, service for which payments were made to 
        the state police officers retirement fund after June 30, 1961, 
        and all prior service which was credited to a member for service 
        on or before June 30, 1961.  
           (b) Allowable service also includes any period of absence 
        from duty by a member who, by reason of injury incurred in the 
        performance of duty, is temporarily disabled and for which 
        disability the state is liable under the workers' compensation 
        law, until the date authorized by the executive director for 
        commencement of payment of a disability benefit or return to 
        employment.  
           Sec. 3.  Minnesota Statutes 1998, section 352D.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COVERAGE.] (a) Employees enumerated in 
        paragraph (c), clauses (2), (3), (4), and (6) to (15), if they 
        are in the unclassified service of the state or metropolitan 
        council and are eligible for coverage under the general state 
        employees retirement plan under chapter 352, are participants in 
        the unclassified program plan under this chapter unless the 
        employee gives notice to the executive director of the Minnesota 
        state retirement system within one year following the 
        commencement of employment in the unclassified service that the 
        employee desires coverage under the general state employees 
        retirement plan.  For the purposes of this chapter, an employee 
        who does not file notice with the executive director is deemed 
        to have exercised the option to participate in the unclassified 
        plan. 
           (b) Persons referenced in paragraph (c), clauses (1) and 
        (5), are participants in the unclassified program under this 
        chapter unless the person is eligible to elect different 
        coverage under section 3A.07 or 352C.011 and, after July 1, 
        1998, elects retirement coverage by the applicable alternative 
        retirement plan. 
           (c) Enumerated employees and referenced persons are: 
           (1) the governor, the lieutenant governor, the secretary of 
        state, the state auditor, the state treasurer, and the attorney 
        general; 
           (2) an employee in the office of the governor, lieutenant 
        governor, secretary of state, state auditor, state treasurer, 
        attorney general; 
           (3) an employee of the state board of investment; 
           (4) the head of a department, division, or agency created 
        by statute in the unclassified service, an acting department 
        head subsequently appointed to the position, or an employee 
        enumerated in section 15A.0815 or 15A.083, subdivision 4; 
           (5) a member of the legislature; 
           (6) a permanent, full-time unclassified employee of the 
        legislature or a commission or agency of the legislature or a 
        temporary legislative employee having shares in the supplemental 
        retirement fund as a result of former employment covered by this 
        chapter, whether or not eligible for coverage under the 
        Minnesota state retirement system; 
           (7) a person who is employed in a position established 
        under section 43A.08, subdivision 1, clause (3), or in a 
        position authorized under a statute creating or establishing a 
        department or agency of the state, which is at the deputy or 
        assistant head of department or agency or director level; 
           (8) the regional administrator, or executive director of 
        the metropolitan council, general counsel, division directors, 
        operations managers, and other positions as designated by the 
        council, all of which may not exceed 27 positions at the council 
        and the chair, provided that upon initial designation of all 
        positions provided for in this clause, no further designations 
        or redesignations may be made without approval of the board of 
        directors of the Minnesota state retirement system; 
           (9) the executive director, associate executive director, 
        and not to exceed nine positions of the higher education 
        services office in the unclassified service, as designated by 
        the higher education services office before January 1, 1992, or 
        subsequently redesignated with the approval of the board of 
        directors of the Minnesota state retirement system, unless the 
        person has elected coverage by the individual retirement account 
        plan under chapter 354B; 
           (10) the clerk of the appellate courts appointed under 
        article VI, section 2, of the Constitution of the state of 
        Minnesota; 
           (11) the chief executive officers of correctional 
        facilities operated by the department of corrections and of 
        hospitals and nursing homes operated by the department of human 
        services; 
           (12) an employee whose principal employment is at the state 
        ceremonial house; 
           (13) an employee of the Minnesota educational computing 
        corporation; 
           (14) an employee of the world trade center board; and 
           (15) an employee of the state lottery board who is covered 
        by the managerial plan established under section 43A.18, 
        subdivision 3. 
           Sec. 4.  Minnesota Statutes 1998, section 352D.05, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FULL OR PARTIAL WITHDRAWAL.] After termination 
        of covered employment or at any time thereafter, a participant 
        is entitled, upon application, to withdraw the cash value of the 
        participant's total shares or leave such shares on deposit with 
        the supplemental retirement fund.  The account is valued at the 
        end of the month in which application for withdrawal is made.  
        Shares not withdrawn remain on deposit with the supplemental 
        retirement fund until the former participant becomes at least 55 
        years old, and applies for an annuity under section 352D.06, 
        subdivision 1.  
           Sec. 5.  Minnesota Statutes 1998, section 352D.06, is 
        amended to read: 
           352D.06 [ANNUITIES.] 
           Subdivision 1.  [ANNUITY; RESERVES.] When a participant 
        attains at least age 55, is retired terminates from covered 
        service, and applies for a retirement annuity, the cash value of 
        the participant's shares shall be transferred to the Minnesota 
        postretirement investment fund and used to provide an annuity 
        for the retired employee based upon the participant's age when 
        the benefit begins to accrue according to the reserve basis used 
        by the general state employees retirement fund plan in 
        determining pensions and reserves.  
           Subd. 2.  [PARTIAL VALUE ANNUITY.] A participant has the 
        option in an application for an annuity to apply for and receive 
        the a partial value of one-half of the total shares and 
        thereafter receive an annuity, as provided in subdivision 1, 
        based on the remaining value of one-half of the total shares.  
           Subd. 3.  [ACCRUAL DATE.] An annuity herein shall begin to 
        accrue under this section accrues the first day of the first 
        full month after an application is received or after termination 
        of state service, whichever is later.  Upon the former 
        employee's request, the annuity may begin to accrue up to six 
        months before redemption of shares, but not prior to the 
        termination date from covered service, and must be based on the 
        account value at redemption and upon the age of the former 
        employee at the date annuity accrual starts.  The account must 
        be valued and redeemed on the later of the end of the month of 
        termination of covered employment, or the end of the month of 
        receipt of the annuity application for the purpose of computing 
        the annuity. 
           Sec. 6.  Minnesota Statutes 1998, section 352D.09, 
        subdivision 5a, is amended to read: 
           Subd. 5a.  [SMALL BALANCE ACCOUNTS.] If a former 
        participant who contributed less than $100 $500 in employee 
        contributions cannot be contacted by the system for five or more 
        years, the value of the shares shall be appropriated to the 
        general employees retirement fund, but upon subsequent contact 
        by the former employee the account shall be reinstated to the 
        amount that would have been payable had the money been left in 
        the unclassified plan. 
           Sec. 7.  Minnesota Statutes 1998, section 353.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PUBLIC EMPLOYEE.] "Public employee" means an 
        employee performing personal services for a governmental 
        subdivision under subdivision 6, whose salary is paid, in whole 
        or in part, from revenue derived from taxation, fees, 
        assessments, or from other sources.  The term also includes 
        special classes of persons listed in subdivision 2a, but 
        excludes special classes of persons listed in subdivision 2b for 
        purposes of membership in the association.  Public employee does 
        not include independent contractors and their employees.  A 
        reemployed annuitant under section 353.37 must not be considered 
        to be a public employee for purposes of that reemployment. 
           Sec. 8.  Minnesota Statutes 1998, section 353.01, 
        subdivision 6, is amended to read: 
           Subd. 6.  [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 
        subdivision" means a county, city, town, school district within 
        this state, or a department or unit of state government, or any 
        public body whose revenues are derived from taxation, fees, 
        assessments or from other sources. 
           (b) Governmental subdivision also means the public 
        employees retirement association, the league of Minnesota 
        cities, the association of metropolitan municipalities, public 
        hospitals owned or operated by, or an integral part of, a 
        governmental subdivision or governmental subdivisions, the 
        association of Minnesota counties, the metropolitan intercounty 
        association, the Minnesota municipal utilities association, the 
        metropolitan airports commission, and the Minneapolis employees 
        retirement fund for employment initially commenced after June 
        30, 1979, the range association of municipalities and schools, 
        soil and water conservation districts, and economic development 
        authorities created or operating under sections 469.090 to 
        469.108. 
           (c) Governmental subdivision does not mean any municipal 
        housing and redevelopment authority organized under the 
        provisions of sections 469.001 to 469.047; or any port authority 
        organized under sections 469.048 to 469.068 469.089; or any 
        hospital district organized or reorganized prior to July 1, 
        1975, under sections 447.31 to 447.37 or the successor of the 
        district, nor the Minneapolis community development agency.  
           Sec. 9.  Minnesota Statutes 1999 Supplement, section 
        353.01, subdivision 10, is amended to read: 
           Subd. 10.  [SALARY.] (a) "Salary" means: 
           (1) periodic compensation of a public employee, before 
        deductions for deferred compensation, supplemental retirement 
        plans, or other voluntary salary reduction programs, and also 
        means "wages" and includes net income from fees; and 
           (2) for a public employee who has prior service covered by 
        a local police or firefighters' relief association that has 
        consolidated with the public employees retirement association or 
        to which section 353.665 applies and who has elected coverage 
        either under the public employees police and fire fund benefit 
        plan under section 353A.08 following the consolidation or under 
        section 353.665, subdivision 4, "salary" means the rate of 
        salary upon which member contributions to the special fund of 
        the relief association were made prior to the effective date of 
        the consolidation as specified by law and by bylaw provisions 
        governing the relief association on the date of the initiation 
        of the consolidation procedure and the actual periodic 
        compensation of the public employee after the effective date of 
        consolidation. 
           (b) Salary does not mean: 
           (1) fees paid to district court reporters, unused 
        annual vacation or sick leave payments, in lump-sum or periodic 
        payments, severance payments, reimbursement of expenses, 
        lump-sum settlements not attached to a specific earnings period, 
        or workers' compensation payments; 
           (2) employer-paid amounts used by an employee toward the 
        cost of insurance coverage, employer-paid fringe benefits, 
        flexible spending accounts, cafeteria plans, health care expense 
        accounts, day care expenses, or any payments in lieu of any 
        employer-paid group insurance coverage, including the difference 
        between single and family rates that may be paid to a member 
        with single coverage and certain amounts determined by the 
        executive director to be ineligible; 
           (3) the amount equal to that which the employing 
        governmental subdivision would otherwise pay toward single or 
        family insurance coverage for a covered employee when, through a 
        contract or agreement with some but not all employees, the 
        employer: 
           (i) discontinues, or for new hires does not provide, 
        payment toward the cost of the employee's selected insurance 
        coverages under a group plan offered by the employer; 
           (ii) makes the employee solely responsible for all 
        contributions toward the cost of the employee's selected 
        insurance coverages under a group plan offered by the employer, 
        including any amount the employer makes toward other employees' 
        selected insurance coverages under a group plan offered by the 
        employer; and 
           (iii) provides increased salary rates for employees who do 
        not have any employer-paid group insurance coverages; and 
           (4) except as provided in section 353.86 or 353.87, 
        compensation of any kind paid to volunteer ambulance service 
        personnel or volunteer firefighters, as defined in subdivisions 
        subdivision 35 and or 36.  
           Sec. 10.  Minnesota Statutes 1998, section 353.01, 
        subdivision 11a, is amended to read: 
           Subd. 11a.  [TERMINATION OF PUBLIC SERVICE.] 
        (a) "Termination of public service" occurs when a member resigns 
        or is dismissed from public service by the employing 
        governmental subdivision, as evidenced by appropriate written 
        record transmitted to the association, or when a position ends 
        and the member who held the position is not considered by the 
        governmental subdivision to be on a temporary layoff, and the 
        employee does not, within 30 days of resignation or dismissal 
        the date the employment relationship ended, return to a 
        nontemporary an employment position in the same governmental 
        subdivision. 
           (b) The termination of public service must be recorded in 
        the association records upon receipt of an appropriate notice 
        from the governmental subdivision. 
           Sec. 11.  Minnesota Statutes 1998, section 353.01, 
        subdivision 28, is amended to read: 
           Subd. 28.  [RETIREMENT.] (a) "Retirement" means the 
        commencement of payment of an annuity based on a date designated 
        by the board of trustees.  This date determines the rights under 
        this chapter which occur either before or after retirement.  A 
        right to retirement is subject to termination of public service 
        under subdivision 11a or termination of membership under 
        subdivision 11b, the earlier of which will determine the date 
        membership and coverage cease.  A right to retirement must not 
        accrue without requires a complete and continuous separation for 
        30 days from employment as a public employee under subdivision 2 
        and from the provision of paid services to that employer. 
           (b) An individual who separates from employment as a public 
        employee and who, within 30 days of separation, returns to 
        provide service to a governmental subdivision as an independent 
        contractor or as an employee of an independent contractor, has 
        not satisfied separation requirements under paragraph (a). 
           (c) A former member of the basic or police and fire fund 
        who becomes a coordinated member upon returning to eligible, 
        nontemporary public service, terminates employment before 
        obtaining six months' allowable service under subdivision 16, 
        paragraph (a), in the coordinated fund, and is eligible to 
        receive an annuity the first day of the month after the most 
        recent termination date shall not accrue a right to a retirement 
        annuity under the coordinated fund.  An annuity otherwise 
        payable to the former member must be based on the laws in effect 
        on the date of termination of the most recent service under the 
        basic or police and fire fund and shall be retroactive to the 
        first day of the month following that termination date or one 
        year preceding the filing of an application for retirement 
        annuity as provided by section 353.29, subdivision 7, whichever 
        is later.  The annuity payment must be suspended or reduced 
        under the provisions of section 353.37, if earned compensation 
        for the reemployment equals or exceeds the amounts indicated 
        under that section.  The association will refund the employee 
        deductions made to the coordinated fund, with interest under 
        section 353.34, subdivision 2, return the accompanying employer 
        contributions, and remove the allowable service credits covering 
        the deductions refunded. 
           (b) (d) Notwithstanding the 30-day separation requirement 
        under paragraph (a), a member of the defined benefit plan under 
        this chapter, who also participates in the public employees 
        defined contribution plan under chapter 353D for other public 
        service, may be paid, if eligible, a retirement annuity from the 
        defined benefit plan while participating in the defined 
        contribution plan. 
           Sec. 12.  Minnesota Statutes 1998, section 353.01, 
        subdivision 32, is amended to read: 
           Subd. 32.  [COORDINATED MEMBER.] "Coordinated member" means 
        any public employee, including any public hospital employee, 
        covered by any agreement or modification made between the state 
        and the Secretary of Health, Education and Welfare, making the 
        provisions of the federal Old Age, Survivors and Disability 
        Insurance Act applicable to the member if membership eligibility 
        criteria are met under this chapter.  A coordinated member also 
        means is a former basic member who terminates public service 
        under subdivision 11a, has a complete and continuous separation 
        for at least 30 days from employment as a public employee 
        meeting the requirements specified in subdivision 28, paragraphs 
        (a) and (b), and who reenters public service in a nontemporary 
        position, as a public employee and meets the membership 
        eligibility criteria under this chapter. 
           Sec. 13.  Minnesota Statutes 1998, section 353.15, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AUTOMATIC DEPOSITS.] The association may pay an 
        remit, through an automatic deposit system, annuity, benefit, or 
        refund payments only to a trust company, qualified under chapter 
        48, financial institution associated with the National Automated 
        Clearinghouse Association or a comparable successor organization 
        that is the trustee for a person eligible to receive such the 
        annuity, benefit, or refund.  Upon the request of a retired, 
        disabled the retiree, disabilitant, survivor, or former member, 
        the association may mail or send by electronic transfer the 
        annuity, benefit or refund check to a banking institution, 
        savings association or credit union the applicable financial 
        institution for deposit to such in the person's account or joint 
        account with a spouse.  The association may prescribe the 
        conditions under which such payment will be made.  
           Sec. 14.  Minnesota Statutes 1998, section 353.27, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EMPLOYERS EMPLOYER REPORTING REQUIREMENTS; 
        CONTRIBUTIONS; MEMBER STATUS.] (a) A representative authorized 
        by the head of each department shall deduct employee 
        contributions from the salary of each member employee who 
        qualifies for membership under this chapter and issue or approve 
        one warrant remit payment in a manner prescribed by the 
        executive director for the aggregate amount of the employee 
        contributions, the employer contributions and the additional 
        employer contributions to be received within 20 14 calendar days 
        in the office of the association.  The head of each 
        department or the person's designee shall, for each pay period 
        in which employee contributions are deducted, submit to the 
        association a salary deduction report, in the form format 
        prescribed by the executive director, showing.  Data to be 
        submitted as part of salary deduction reporting must include, 
        but are not limited to:  
           (a) (1) the legal names and the association membership 
        numbers, listed in alphabetical order, social security numbers 
        of employees who are members; 
           (b) (2) the legal names of all new public employees and the 
        effective dates of appointment; (c) the amount of each 
        employee's salary deduction; (d) 
           (3) the amount of salary from which each deduction was 
        made; (e) effective dates of member terminations of public 
        service accompanied by the applicable status code as set by the 
        association for those terminations caused by death or 
        retirement; (f) effective dates of all temporary layoffs and 
        leaves of absence accompanied by the applicable status code as 
        set by the association; and (g) 
           (4) the beginning and ending dates of the payroll period 
        covered and the date of actual payment; and 
           (5) adjustments or corrections covering past pay periods.  
           Reports of contributions must be accompanied by a 
        membership enrollment form 
           (b) Employers must furnish the data required for enrollment 
        for each new employee who qualifies for membership in the form 
        format prescribed by the executive director.  The required 
        enrollment forms from data on new employees must be collected by 
        the employer and submitted to the association within 30 days 
        following the date of employment prior to or concurrent with the 
        submission of the initial employee salary deduction.  The 
        employer shall also report to the association all member 
        employment status changes, such as leaves of absence, 
        terminations, and death, and the effective dates of those 
        changes, on an ongoing basis for the payroll cycle in which they 
        occur.  The employer shall furnish such additional data, forms, 
        and reports on magnetic media on other forms as may be requested 
        required by the executive director for proper administration of 
        the retirement system.  Before implementing new or different 
        computerized reporting requirements, the executive director 
        shall give appropriate advance notice to governmental 
        subdivisions to allow time for system modifications. 
           (b) (c) Notwithstanding paragraph (a), the association may 
        provide for less frequent reporting and payments for small 
        employers. 
           Sec. 15.  Minnesota Statutes 1998, section 353.27, 
        subdivision 12, is amended to read: 
           Subd. 12.  [OMITTED SALARY DEDUCTIONS; OBLIGATIONS.] (a) In 
        the case of omission of required deductions from the salary of 
        an employee, the department head or designee shall immediately, 
        upon discovery, report the employee for membership and deduct 
        the employee deductions under subdivision 4.  Upon receipt of 
        billing from the association, during the current pay period or 
        during the pay period immediately following the discovery of the 
        omission.  Payment for the omitted obligations may only be made 
        in accordance with reporting procedures and methods established 
        by the executive director. 
           (b) When the entire omission period of an employee does not 
        exceed 60 days, the governmental subdivision may report and 
        submit payment of the omitted employee deductions and the 
        omitted employer contributions through the reporting processes 
        under subdivision 4. 
           (c) When the omission period of an employee exceeds 60 
        days, the governmental subdivision shall furnish to the 
        association sufficient data and documentation upon which the 
        obligation for omitted employee and employer contributions can 
        be calculated.  The omitted employee deductions must be deducted 
        from the employee's next subsequent salary payment or payments 
        and remitted to the association.  The employee shall pay omitted 
        employee deductions due for the 60 days prior to the end of the 
        last pay period in the omission period during which salary was 
        earned.  The employer shall pay any remaining omitted employee 
        deductions and any omitted employer contributions, plus 
        cumulative interest at an annual rate of 8.5 percent compounded 
        annually, from the date or dates each omitted employee 
        contribution was first payable.  
           (b) (d) An employer shall not hold an employee liable for 
        omitted employee deductions beyond the pay period dates under 
        paragraph (a) (c), nor attempt to recover from the employee 
        those employee deductions paid by the employer on behalf of the 
        employee.  Omitted deductions due under paragraph (a) (c) which 
        are not paid by the employee constitute a liability of the 
        employer that failed to deduct the omitted deductions from the 
        employee's salary.  The employer shall make payment with 
        interest at an annual rate of 8.5 percent compounded annually.  
        Omitted employee deductions are no longer due if an employee 
        terminates public service before making payment of omitted 
        employee deductions to the association, but the employer remains 
        liable to pay omitted employer contributions plus interest at an 
        annual rate of 8.5 percent compounded annually from the date the 
        contributions were first payable.  
           (c) (e) The association may not commence action for the 
        recovery of omitted employee deductions and employer 
        contributions after the expiration of three calendar years after 
        the calendar year in which the contributions and deductions were 
        omitted.  Except as provided under paragraph (b), no payment may 
        be made or accepted unless the association has already commenced 
        action for recovery of omitted deductions.  An action for 
        recovery commences on the date of the mailing of any written 
        correspondence from the association requesting information from 
        the governmental subdivision upon which to determine whether or 
        not omitted deductions occurred. 
           Sec. 16.  Minnesota Statutes 1998, section 353.33, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATIONS; ACCRUAL OF BENEFITS.] Every claim 
        or demand for a total and permanent disability benefit must be 
        initiated by written application in the manner and form 
        prescribed by the executive director showing compliance with the 
        statutory conditions qualifying the applicant for a total and 
        permanent disability benefit and filed with the executive 
        director.  A member or former member who became totally and 
        permanently disabled during a period of membership shall file 
        application for total and permanent disability benefits within 
        three years next following termination of public service.  This 
        benefit begins to accrue the day following the commencement of 
        disability, 90 days preceding the filing of the application, or, 
        if annual or sick leave is paid for more than the 90-day period, 
        from the date salary ceased, whichever is later.  No member is 
        entitled to receive a disability benefit payment when there 
        remains to the member's credit any unused annual leave or sick 
        leave or under any other circumstances when, during the period 
        of disability, there has been no impairment of the person's 
        salary.  Payment must not accrue beyond the end of the month in 
        which entitlement has terminated.  If the disabilitant dies 
        prior to negotiating the check for the month in which death 
        occurs, payment is made to the surviving spouse, or if none, to 
        the designated beneficiary, or if none, to the estate.  An 
        applicant for total and permanent disability benefits may file a 
        retirement annuity application under section 353.29, subdivision 
        4, simultaneously with an application for total and permanent 
        disability benefits.  The retirement annuity application is void 
        upon the determination of the entitlement for disability 
        benefits by the executive director.  If disability benefits are 
        denied, the retirement annuity application must be initiated and 
        processed. 
           Sec. 17.  Minnesota Statutes 1998, section 353.33, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CONTINUING ELIGIBILITY FOR BENEFITS.] The 
        association shall determine eligibility for continuation of 
        disability benefits and require periodic examinations and 
        evaluations of disabled members as frequently as deemed 
        necessary.  The association shall require the disabled member to 
        provide and authorize release of medical evidence, including all 
        medical records and information from any source, relating to an 
        application for continuation of disability benefits.  Disability 
        benefits are contingent upon a disabled person's participation 
        in a vocational rehabilitation program if the executive director 
        determines that the disabled person may be able to return to a 
        gainful occupation.  If a member is found to be no longer 
        totally and permanently disabled and is reinstated to the 
        payroll, payments must cease the first of the month following 
        the reinstatement to the payroll expiration of a 30-day period 
        after the member receives a certified letter notifying the 
        member that payments will cease. 
           Sec. 18.  Minnesota Statutes 1998, section 353.34, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REFUND OR DEFERRED ANNUITY.] (a) A former 
        member is entitled to a refund of accumulated employee 
        deductions under subdivision 2, or to a deferred annuity under 
        subdivision 3.  An active member of a fund enumerated in section 
        356.30, subdivision 3, clause (7), (8), or (14), who terminates 
        public service in any of those funds and becomes a member of 
        another fund enumerated in those clauses may receive a refund of 
        employee contributions plus six percent interest compounded 
        annually from the fund in which the member terminated service.  
        Application for a refund may not be made prior to the date of 
        termination of public service or the termination of membership, 
        whichever is sooner.  Except as specified in paragraph (b), a 
        refund must be paid within 120 days following receipt of the 
        application unless the applicant has again become a public 
        employee required to be covered by the association.  
           (b) If an individual was granted an authorized temporary 
        layoff, a refund is not payable before termination of membership 
        under section 353.01, subdivision 11b, clause (3). 
           (c) An individual who terminates public service covered by 
        the public employees retirement association general plan, the 
        public employees retirement association police and fire plan, or 
        the public employees local government corrections service 
        retirement plan, and who becomes an active member covered by one 
        of the other two plans, may receive a refund of employee 
        contributions plus six percent interest compounded annually from 
        the plan in which the member terminated service. 
           Sec. 19.  Minnesota Statutes 1999 Supplement, section 
        353.64, subdivision 1, is amended to read: 
           Subdivision 1.  [POLICE AND FIRE FUND PLAN MEMBERSHIP; 
        MANDATORY.] A governmental subdivision must report a public 
        employee for membership in the police and fire plan if the 
        employee is employed full-time as specified in clause (1), (2), 
        or (3): 
           (1) a full-time police officer or a person in charge of a 
        designated police or sheriff's department, who by virtue of that 
        employment is required by the employing governmental subdivision 
        to be and is licensed by the Minnesota peace officer standards 
        and training board under sections 626.84 to 626.863, who is 
        charged with the prevention and detection of crime, who has the 
        full power of arrest, who is assigned to a designated police or 
        sheriff's department, and whose primary job is the enforcement 
        of the general criminal laws of the state; 
           (2) a full-time firefighter or a person in charge of a 
        designated fire company or companies who is engaged in the 
        hazards of fire fighting; or 
           (3) a full-time police officer or firefighter meeting all 
        requirements of clause (1) or (2), as applicable, who as part of 
        the employment position is periodically assigned to employment 
        duties in the same department that are not within the scope of 
        this subdivision. 
           An individual to which clause (3) applies must contribute 
        as a member of the police and fire plan for both the primary and 
        secondary services that are provided to the employing 
        governmental subdivision.  
           Subd. 1a.  [POLICE AND FIRE PLAN; OTHER MEMBERS.] (a) A 
        person who prior to July 1, 1961, was a member of the police and 
        fire fund plan, by virtue of being a police officer or 
        firefighter, shall, as long as the person remains in either 
        position, continue membership in the fund plan.  
           (b) A person who was employed by a governmental subdivision 
        as a police officer and was a member of the police and fire fund 
        plan on July 1, 1978, by virtue of being a police officer as 
        defined by this section on that date, and if employed by the 
        same governmental subdivision in a position in the same 
        department in which the person was employed on that date, 
        continues to be a member of the fund plan, whether or not that 
        person has the power of arrest by warrant and is licensed by the 
        peace officers standards and training board after that date. 
           (c) A person who was employed as a correctional officer by 
        Rice county before July 1, 1998, for the duration of employment 
        in the correctional position held on July 1, 1998, continues to 
        be a member of the public employees police and fire plan, 
        whether or not the person has the power of arrest by warrant and 
        is licensed by the peace officers standards and training board 
        after that date. 
           (c) (d) A person who was employed by a governmental 
        subdivision as a police officer or a firefighter, whichever 
        applies, was an active member of the local police or salaried 
        firefighters relief association located in that governmental 
        subdivision by virtue of that employment as of the effective 
        date of the consolidation as authorized by sections 353A.01 to 
        353A.10, and has elected coverage by the public employees police 
        and fire fund benefit plan, shall become a member of the police 
        and fire fund plan after that date if employed by the same 
        governmental subdivision in a position in the same department in 
        which the person was employed on that date. 
           (d) Any other employee serving on a full-time basis as a 
        police officer as defined in subdivision 2 or as a firefighter 
        as defined in subdivision 3 on or after July 1, 1961, shall 
        become a member of the public employees police and fire fund.  
           (e) An employee serving on less than a full-time basis as a 
        police officer shall become a member of the public employees 
        police and fire fund only after a resolution stating that the 
        employee should be covered by the police and fire fund is 
        adopted by the governing body of the governmental subdivision 
        employing the person declaring that the position which the 
        person holds is that of a police officer. 
           (f) An employee serving on less than a full-time basis as a 
        firefighter shall become a member of the public employees police 
        and fire fund only after a resolution stating that the employee 
        should be covered by the police and fire fund is adopted by the 
        governing body of the governmental subdivision employing the 
        person declaring that the position which the person holds is 
        that of a firefighter. 
           (g) A police officer or firefighter employed by a 
        governmental subdivision who by virtue of that employment is 
        required by law to be a member of and to contribute to any 
        police or firefighter relief association governed by section 
        69.77 which has not consolidated with the public employees 
        police and fire fund, (e) Any police officer or firefighter of a 
        relief association that has consolidated with the association 
        for which the employee has not elected coverage by the public 
        employees police and fire fund benefit plan as provided in 
        sections 353A.01 to 353A.10, or any police officer or 
        firefighter to whom section 353.665 applies who has not elected 
        coverage by the public employees police and fire fund benefit 
        plan as provided in section 353.665, subdivision 4, shall must 
        not become a member of the public employees police and fire fund 
        plan, but is not subject to the provisions of sections 353.651 
        to 353.659 unless an election for such coverage is made under 
        section 353.665, subdivision 4. 
           Sec. 20.  Minnesota Statutes 1998, section 353.64, 
        subdivision 2, is amended to read: 
           Subd. 2.  [POLICE AND FIRE FUND MEMBERSHIP; PART-TIME 
        EMPLOYMENT COVERAGE OPTION.] Before a (a) The governing body of 
        a governmental subdivision may adopt a resolution, subject to 
        requirements specified in paragraph (b), declaring that a public 
        employee employed in a position on a part-time basis by that 
        governmental subdivision is covered by the police and fire plan 
        for that employment. 
           (b) If the public employee's position is related to police 
        service, the resolution is valid if the conditions specified in 
        paragraph (c) are met.  If the public employee's position is 
        related to fire service, the resolution is valid if the 
        conditions specified in paragraph (d) are met.  If the public 
        employee in the applicable position is periodically assigned to 
        employment duties not within the scope of this subdivision, the 
        resolution is considered valid if the governing body of the 
        governmental subdivision declares that the public employee's 
        position, for primary services provided, satisfies all of the 
        requirements of subdivision 1, clause (3), other than the 
        requirement of full-time employment. 
           (c) For the governing body may of the governmental 
        subdivision to declare a position to be that of a police 
        officer, the duties and qualifications of the person so employed 
        must, as at a minimum, include employment as an officer of a 
        designated police department or sheriff's office or person in 
        charge of a designated police department or sheriff's office 
        whose primary job it is to enforce the law, who is licensed by 
        the Minnesota board of peace officer standards and training 
        under sections 626.84 to 626.863, who is engaged in the hazards 
        of protecting the safety and property of others, and who has the 
        power to arrest by warrant. 
           A police officer who is periodically assigned to employment 
        duties not within the scope of this subdivision may contribute 
        to the public employees police and fire fund for all service, if 
        a resolution declaring that the primary position held by the 
        person is that of a police officer, is adopted by the governing 
        body of the department, and is promptly submitted to the 
        executive director. satisfy all of the requirements of 
        subdivision 1, clause (1), other than the requirement of 
        full-time employment. 
           (d) For the governing body of a governmental subdivision to 
        declare a position to be that of a firefighter, the duties and 
        qualifications of the person so employed must, at a minimum, 
        satisfy all of the requirements of subdivision 1, clause (2), 
        other than the requirement of full-time employment. 
           Sec. 21.  Minnesota Statutes 1998, section 353.64, 
        subdivision 3, is amended to read: 
           Subd. 3.  [POLICE AND FIRE FUND MEMBERSHIP; EXCLUSION.] 
        Before a governing body may declare a position to be that of a 
        firefighter, the duties of the person so employed must, as a 
        minimum, include services as an employee of a designated fire 
        company or person in charge of a designated fire company or 
        companies who is engaged in the hazards of fire fighting.  A 
        firefighter who is periodically assigned to employment duties 
        outside the scope of firefighting may contribute to the public 
        employees police and fire fund for all service, if a resolution 
        declaring that the primary position held by the person is that 
        of a firefighter, is adopted by the governing body of the 
        company or companies, and is promptly submitted to the executive 
        director.  A police officer or firefighter employed by a 
        governmental subdivision who by virtue of that employment is 
        required by law to be a member of and to contribute to any 
        police or firefighter relief association governed by section 
        69.77 which has not consolidated with the public employees 
        police and fire plan is not eligible to become a member of the 
        public employees police and fire plan. 
           Sec. 22.  Minnesota Statutes 1998, section 353.64, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RESOLUTION FILING.] (a) A copy of the resolution 
        of the governing body declaring a position to be that of police 
        officer or firefighter shall be promptly filed with the board of 
        trustees and shall be irrevocable.  
           (b) Following the receipt of adequate notice from the 
        association, if a valid resolution is not filed with the public 
        employees retirement association within six months following the 
        date of that notice, any contributions or deductions made to the 
        police and fire fund for the applicable employment are deemed to 
        be contributions or deductions transmitted in error under 
        section 353.27, subdivision 7a. 
           Sec. 23.  Minnesota Statutes 1998, section 353.656, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [IN LINE OF DUTY; COMPUTATION OF BENEFITS.] 
        A member of the police and fire fund plan who becomes disabled 
        and physically unfit to perform duties as a police officer or, 
        firefighter subsequent to June 30, 1973, or paramedic as defined 
        under section 353.64, subdivision 10, as a direct result of an 
        injury, sickness, or other disability incurred in or arising out 
        of any act of duty, which has or is expected to render the 
        member physically or mentally unable to perform the duties as a 
        police officer or, firefighter, or paramedic as defined under 
        section 353.64, subdivision 10, for a period of at least one 
        year, shall receive disability benefits during the period of 
        such disability.  The benefits must be in an amount equal to 60 
        percent of the "average salary" under as defined in section 
        353.651, subdivision 3 2, plus an additional percent specified 
        in section 356.19, subdivision 6, of said that average salary 
        for each year of service in excess of 20 years.  Should If the 
        disability under this subdivision occur occurs before the member 
        has at least five years of allowable service credit in the 
        police and fire fund plan, the disability benefit must be 
        computed on the "average salary" from which deductions were made 
        for contribution to the police and fire fund. 
           Sec. 24.  Minnesota Statutes 1998, section 353.656, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NONDUTY DISABILITY BENEFIT.] Any member of the 
        police and fire plan who becomes disabled after not less than 
        one year of allowable service because of sickness or injury 
        occurring while not on duty as a police officer or, firefighter, 
        or paramedic as defined under section 353.64, subdivision 10, 
        and by reason of that sickness or injury the member has been or 
        is expected to be unable to perform the duties as a police 
        officer or, firefighter, or paramedic as defined under section 
        353.64, subdivision 10, for a period of at least one year, is 
        entitled to receive a disability benefit.  The benefit must be 
        paid in the same manner as if the benefit were paid under 
        section 353.651.  If a disability under this subdivision occurs 
        after one but in less than 15 years of allowable service, the 
        disability benefit must be the same as though the member had at 
        least 15 years service.  For a member who is employed as a 
        full-time firefighter by the department of military affairs of 
        the state of Minnesota, allowable service as a full-time state 
        military affairs department firefighter credited by the 
        Minnesota state retirement system may be used in meeting the 
        minimum allowable service requirement of this subdivision. 
           Sec. 25.  Minnesota Statutes 1998, section 353.71, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEFERRED ANNUITY COMPUTATION; AUGMENTATION.] (a) 
        The deferred annuity, if any, accruing under subdivision 1, or 
        under sections 353.34, subdivision 3, and 353.68, subdivision 4, 
        must be computed in the manner provided in said sections, on the 
        basis of allowable service prior to the termination of public 
        service and augmented as provided herein in this paragraph.  The 
        required reserves applicable to a deferred annuity, or to an 
        annuity for which a former member was eligible but had not 
        applied, or to any deferred segment of an annuity shall must be 
        determined as of the date the annuity begins to accrue and shall 
        be augmented from the first day of the month following the month 
        in which the former member ceased to be a public employee, or 
        July 1, 1971, whichever is later, to the first day of the month 
        in which the annuity begins to accrue,.  These required reserves 
        must be augmented at the rate of five percent per annum annually 
        compounded annually until January 1, 1981, and at the rate of 
        three percent thereafter until January 1 of the year following 
        the year in which the former member attains age 55.  From that 
        date to the effective date of retirement, the rate is five 
        percent per annum compounded annually.  If a person has more 
        than one period of uninterrupted service, the required reserves 
        related to each period shall must be augmented by interest 
        pursuant to this subdivision as specified in this paragraph.  
        The sum of the augmented required reserves so determined shall 
        be is the present value of the annuity.  Uninterrupted service 
        for the purpose of this subdivision shall mean means periods of 
        covered employment during which the employee has not been 
        separated from public service for more than two years.  If a 
        person repays a refund, the restored service restored thereby 
        shall must be considered as continuous with the next period of 
        service for which the employee has credit with this association. 
        The formula percentages used for each period of uninterrupted 
        service shall be those as would be applicable to a new employee. 
        This section shall must not reduce the annuity otherwise payable 
        under this chapter.  This subdivision paragraph shall apply 
        applies to individuals who become deferred annuitants of record 
        on or after July 1, 1971, and to employees who thereafter become 
        deferred annuitants; it shall also apply.  For a member who 
        became a deferred annuitant before July 1, 1971, the paragraph 
        applies from July 1, 1971, to if the former members who make 
        application active member applies for an annuity after July 1, 
        1973. 
           (b) The retirement annuity or disability benefit of, or the 
        survivor benefit payable on behalf of, a former member who 
        terminated service before July 1, 1997, or the survivor benefit 
        payable on behalf of a basic or police and fire member who was 
        receiving disability benefits before July 1, 1997, which is not 
        first payable until after June 30, 1997, must be increased on an 
        actuarial equivalent basis to reflect the change in the 
        postretirement interest rate actuarial assumption under section 
        356.215, subdivision 4d, from five percent to six percent under 
        a calculation procedure and tables adopted by the board and 
        approved by the actuary retained by the legislative commission 
        on pensions and retirement. 
           Sec. 26.  Minnesota Statutes 1998, section 353B.11, 
        subdivision 3, is amended to read: 
           Subd. 3.  [AMOUNT; SURVIVING SPOUSE BENEFIT.] (a) The 
        surviving spouse benefit shall be 30 percent of the salary base 
        for the former members of the following consolidating relief 
        associations:  
           (1) Albert Lea firefighters relief association; 
           (2) Albert Lea police relief association; 
           (3) Anoka police relief association; 
           (4) Austin police relief association; 
           (5) Brainerd police benefit association; 
           (6) Crookston police relief association; 
           (7) Faribault fire department relief association; and 
           (8) West St. Paul firefighters relief association.  
           (b) The surviving spouse benefit shall be 25 percent of the 
        salary base for the former members of the following 
        consolidating relief associations:  
           (1) Chisholm police relief association; 
           (2) Duluth firefighters relief association; 
           (3) Duluth police pension association; 
           (4) Fairmont police benefit association; 
           (5) Red Wing fire department relief association; 
           (6) South St. Paul police relief association; and 
           (7) West St. Paul police relief association. 
           (c) The surviving spouse benefit shall be 24 percent of the 
        salary base for the former members of the following 
        consolidating relief associations: 
           (1) Fridley police pension association; 
           (2) Richfield police relief association; 
           (3) Rochester fire department relief association; 
           (4) Rochester police relief association; 
           (5) Winona fire department relief association; and 
           (6) Winona police relief association. 
           (d) The surviving spouse benefit shall be 40 percent of the 
        salary base for the former members of the following 
        consolidating relief associations: 
           (1) Columbia Heights fire department relief association, 
        paid division; and 
           (2) New Ulm police relief association.  
           (e) The surviving spouse benefit shall be $250 per month 30 
        percent of the salary base for the former members of the 
        following consolidating relief associations: 
           (1) Hibbing firefighters relief association; and 
           (2) Hibbing police relief association. 
           (f) The surviving spouse benefit shall be 23.75 percent of 
        the salary base for the former members of the following 
        consolidating relief associations: 
           (1) Crystal police relief associations; and 
           (2) Minneapolis police relief association.  
           (g) The surviving spouse benefit shall be 32 percent of the 
        salary base for the former members of the following 
        consolidating relief associations: 
           (1) St. Cloud fire department relief association; and 
           (2) St. Cloud police relief association. 
           (h) The surviving spouse benefit shall be one-half of the 
        service pension or disability benefit which the deceased member 
        was receiving as of the date of death, or of the service pension 
        which the deferred member would have been receiving if the 
        service pension had commenced as of the date of death or of the 
        service pension which the active member would have received 
        based on the greater of the allowable service credit of the 
        person as of the date of death or 20 years of allowable service 
        credit if the person would have been eligible as of the date of 
        death, for the former members of the following consolidating 
        relief associations: 
           (1) Virginia fire department relief association; and 
           (2) Virginia police relief association. 
           (i) The surviving spouse benefit shall be the following for 
        the former members of the consolidating relief associations as 
        indicated: 
           (1) 30 percent of the salary base, reduced by any amount 
        awarded or payable from the service pension or disability 
        benefit of the deceased former firefighter to a former spouse of 
        the member by virtue of the legal dissolution of the member's 
        marriage to the former spouse if the surviving spouse married 
        the member after the time of separation from active service, 
        Austin firefighters relief association; 
           (2) 27.333 percent of the salary base, or one-half of the 
        service pension payable to or accrued by the deceased former 
        member, whichever is greater, Bloomington police relief 
        association; 
           (3) 72.25 percent of the salary base, Buhl police relief 
        association; 
           (4) 50 percent of the service pension which the active 
        member would have received based on allowable service credit to 
        the date of death and prospective service from the date of death 
        until the date on which the person would have attained the 
        normal retirement age, 50 percent of the service pension which 
        the deferred member would have been receiving if the service 
        pension had commenced as of the date of death or $175 per month 
        if the deceased member was receiving a service pension or 
        disability benefit as of the date of death, Chisholm 
        firefighters relief association; 
           (5) two-thirds of the service pension or disability benefit 
        which the deceased member was receiving as of the date of death, 
        or of the service pension which the deferred member would have 
        been receiving if the service pension had commenced as of the 
        date of death or of the service pension which the active member 
        would have received based on the greater of the allowable 
        service credit of the person as of the date of death or 20 years 
        of allowable service credit if the person would have been 
        eligible as of the date of death, Columbia Heights police relief 
        association; 
           (6) the greater of $300 per month or one-half of the 
        service pension or disability benefit which the deceased member 
        was receiving as of the date of death, or of the service pension 
        which the deferred member would have been receiving if the 
        service pension had commenced as of the date of death or of the 
        service pension which the active member would have received 
        based on the allowable service credit of the person as of the 
        date of death if the person would have been eligible as of the 
        date of death, Crookston fire department relief association; 
           (7) $100 per month, Faribault police benefit association; 
           (8) 60 percent of the service pension or disability benefit 
        which the deceased member was receiving as of the date of death, 
        or of the service pension which the deferred member would have 
        been receiving if the service pension had commenced as of the 
        date of death or of the service pension which the active member 
        would have received based on the allowable service credit of the 
        person as of the date of death if the person would have been 
        eligible as of the date of death, Mankato fire department relief 
        association; 
           (9) $175 per month, Mankato police benefit association; 
           (10) 26.25 percent of the salary base, Minneapolis fire 
        department relief association; 
           (11) equal to the service pension or disability benefit 
        which the deceased member was receiving as of the date of death, 
        or of the service pension which the deferred member would have 
        been receiving if the service pension had commenced as of the 
        date of death or of the service pension which the active member 
        would have received based on the allowable service credit of the 
        person as of the date of death if the person would have been 
        eligible as of the date of death, Red Wing police relief 
        association; 
           (12) 78.545 percent of the benefit amount payable prior to 
        the death of the deceased active, disabled, deferred, or retired 
        firefighter if that firefighter's benefit was 55 percent of 
        salary or would have been 55 percent of salary if the 
        firefighter had survived to begin benefit receipt; or 80 percent 
        of the benefit amount payable prior to the death of the deceased 
        active, disabled, deferred, or retired firefighter if that 
        firefighter's benefit was 54 percent of salary or would have 
        been 54 percent of salary if the firefighter had survived to 
        begin benefit receipt, Richfield fire department relief 
        association; 
           (13) 40 percent of the salary base for a surviving spouse 
        of a deceased active member, disabled member, or retired or 
        deferred member with at least 20 years of allowable service, or 
        the prorated portion of 40 percent of the salary base that bears 
        the same relationship to 40 percent that the deceased member's 
        years of allowable service bear to 20 years of allowable service 
        for the surviving spouse of a deceased retired or deferred 
        member with at least ten but less than 20 years of allowable 
        service, St. Louis Park fire department relief association; 
           (14) 26.6667 percent of the salary base, St. Louis Park 
        police relief association; 
           (15) 27.5 percent of the salary base, St. Paul fire 
        department relief association; 
           (16) 20 27.5 percent of the salary base, St. Paul police 
        relief association; and 
           (17) 27 percent of the salary base, South St. Paul 
        firefighters relief association. 
           Sec. 27.  Minnesota Statutes 1998, section 354.05, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TEACHER.] (a) "Teacher" means: 
           (1) a person who renders service as a teacher, supervisor, 
        principal, superintendent, librarian, nurse, counselor, social 
        worker, therapist, or psychologist in the public schools of the 
        state located outside of the corporate limits of the cities of 
        the first class as those cities were so classified on January 1, 
        1979, or in the Minnesota state colleges and universities 
        system, or in any charitable, penal, or correctional 
        institutions of a governmental subdivision, or who is engaged in 
        educational administration in connection with the state public 
        school system, including the Minnesota state colleges and 
        university universities system, but excluding the University of 
        Minnesota, whether the position be a public office or an 
        employment, not including members or officers of any general 
        governing or managing board or body; 
           (2) an employee of the teachers retirement association 
        unless the employee is covered by the Minnesota state retirement 
        system by virtue of due to prior employment by the association 
        that system; 
           (3) a person who renders teaching service on a part-time 
        basis and who also renders other services for a single employing 
        unit.  In such cases, the executive director shall determine 
        whether all or none of the combined service is covered by the 
        association, however A person whose teaching service comprises 
        at least 50 percent of the combined employment salary is a 
        member of the association for all services with the single 
        employing unit.  If the person's teaching service comprises less 
        than 50 percent of the combined employment salary, the executive 
        director must determine whether all or none of the combined 
        service is covered by the association. 
           (b) The term Teacher does not mean: 
           (1) an employee described in section 352D.02, subdivision 
        1a, who is hired after the effective date of Laws 1986, chapter 
        458; 
           (2) a person who works for a school or institution as an 
        independent contractor as defined by the Internal Revenue 
        Service; 
           (3) (2) a person employed in subsidized on-the-job 
        training, work experience or public service employment as an 
        enrollee under the federal Comprehensive Employment and Training 
        Act from and after March 30, 1978, unless the person has, as of 
        the later of March 30, 1978, or the date of employment, 
        sufficient service credit in the retirement association to meet 
        the minimum vesting requirements for a deferred retirement 
        annuity, or the employer agrees in writing on forms prescribed 
        by the executive director to make the required employer 
        contributions, including any employer additional contributions, 
        on account of that person from revenue sources other than funds 
        provided under the federal Comprehensive Training and Employment 
        Act, or the person agrees in writing on forms prescribed by the 
        executive director to make the required employer contribution in 
        addition to the required employee contribution; 
           (4) (3) a person holding a part-time adult supplementary 
        technical college license who renders part-time teaching service 
        or a customized trainer as defined by the Minnesota state 
        colleges and universities system in a technical college if (i) 
        the service is incidental to the regular nonteaching occupation 
        of the person; and (ii) the applicable technical college 
        stipulates annually in advance that the part-time teaching 
        service or customized training service will not exceed 300 hours 
        in a fiscal year and retains the stipulation in its records; and 
        (iii) the part-time teaching service or customized training 
        service actually does not exceed 300 hours in a fiscal year; or 
           (5) (4) a person exempt from licensure pursuant to under 
        section 122A.30. 
           Sec. 28.  Minnesota Statutes 1998, section 354.05, 
        subdivision 35, is amended to read: 
           Subd. 35.  [SALARY.] (a) "Salary" means the periodic 
        compensation, upon which member contributions are required and 
        made, that is paid to a teacher before employee-paid fringe 
        benefits, tax sheltered annuities, deferred compensation, or any 
        combination of these employee-paid items are deducted before 
        deductions for deferred compensation, supplemental retirement 
        plans, or other voluntary salary reduction programs. 
           (b) "Salary" does not mean: 
           (1) lump sum annual leave payments; 
           (2) lump sum wellness and sick leave payments; 
           (3) payments in lieu of any employer-paid group insurance 
        coverage; 
           (4) payments for the difference between single and family 
        premium rates that may be paid to a member with single coverage; 
           (5) employer-paid fringe benefits including, but not 
        limited to, flexible spending accounts, cafeteria plans, health 
        care expense accounts, day care expenses, or automobile 
        allowances and expenses; employer-paid amounts used by an 
        employee toward the cost of insurance coverage, employer-paid 
        fringe benefits, flexible spending accounts, cafeteria plans, 
        health care expense accounts, day care expenses, or any payments 
        in lieu of any employer-paid group insurance coverage, including 
        the difference between single and family rates that may be paid 
        to a member with single coverage and certain amounts determined 
        by the executive director to be ineligible; 
           (6) (4) any form of payment made in lieu of any other 
        employer-paid fringe benefit or expense; 
           (7) (5) any form of severance payments; 
           (8) (6) workers' compensation payments; 
           (9) (7) disability insurance payments including 
        self-insured disability payments; 
           (10) (8) payments to school principals and all other 
        administrators for services in addition to the normal work year 
        contract if these additional services are performed on an 
        extended duty day, Saturday, Sunday, holiday, annual leave day, 
        sick leave day, or any other nonduty day; 
           (11) (9) payments under section 356.24, subdivision 1, 
        clause (4); and 
           (12) (10) payments made under section 122A.40, subdivision 
        12, except for payments for sick leave accumulated under the 
        provisions of a uniform school district policy that applies 
        equally to all similarly situated persons in the district. 
           Sec. 29.  Minnesota Statutes 1998, section 354.091, is 
        amended to read: 
           354.091 [SERVICE CREDIT.] 
           (a) In computing the time of service of a teacher, the 
        length of a legal school year in the district or institution 
        where such service was rendered must constitute a year under 
        sections 354.05 to 354.10, provided the year is not less than 
        the legal minimum school year of this state. service credit, 
        no person teacher shall receive credit for more than one year of 
        teaching service for any fiscal year.  Commencing July 1, 1961,: 
           (1) if a teacher teaches only a fractional part of a day, 
        credit must be given for a day of teaching service for each less 
        than five hours taught, and in a day, service credit must be 
        given for the fractional part of the day as the term of service 
        performed bears to five hours; 
           (2) if a teacher teaches five or more hours in a day, 
        service credit must be given for only one day; 
           (3) if a teacher teaches at least 170 full days in any 
        fiscal year, service credit must be given for a full year of 
        teaching service,; and 
           (3) (4) if a teacher teaches for only a fractional part of 
        the year, service credit must be given for such fractional part 
        of the year as the term period of service rendered performed 
        bears to 170 days. 
           (b) A person who teaches in the state colleges and 
        university system teacher shall receive a full year of service 
        credit based on the number of days in the system's employer's 
        full school year if it is less than 170 days.  Teaching service 
        performed prior to before July 1, 1961, must be computed under 
        the law in effect at the time it was rendered performed. 
           (c) A teacher shall does not lose or gain retirement 
        service credit as a result of the employer converting to 
        a four-day work week flexible or alternate work schedule.  If 
        the employer does convert converts to a four-day work week 
        flexible or alternate work schedule, the forms for reporting and 
        the procedures for determining service credit shall must be 
        determined by the executive director with the approval of the 
        board of trustees.  
           Sec. 30.  Minnesota Statutes 1998, section 354.092, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PAY RATE; CERTIFICATION.] A sabbatical leave 
        must be compensated by a minimum of one-third of the salary that 
        the member received for a comparable period during the prior 
        fiscal year.  Before the end of the fiscal year during which any 
        sabbatical leave is granted Upon granting a sabbatical leave, 
        the employing unit granting the leave must certify the leave to 
        the association on a form specified by the executive director.  
           Sec. 31.  Minnesota Statutes 1998, section 354.093, is 
        amended to read: 
           354.093 [PARENTAL OR MATERNITY LEAVE.] 
           Before the end of the fiscal year during which any parental 
        or maternity leave is granted Upon granting a parental leave for 
        the birth or adoption of a child, the employing unit granting 
        the leave must certify the leave to the association on a form 
        specified by the executive director.  A member of the 
        association granted parental or maternity leave of absence by 
        the employing unit is entitled to service credit not to exceed 
        one year for the period of leave upon payment to the association 
        by the end of the fiscal year following the fiscal year in which 
        the leave of absence terminated.  This payment must include 
        equal the total required employee, and employer contributions, 
        and amortization contributions, if any, for the period of leave 
        prescribed in section 354.42.  The payment must be based on the 
        member's average full-time monthly salary rate on the date the 
        leave of absence commenced, and must be without interest.  
        Notwithstanding the provisions of any agreements to the 
        contrary, employee and employer the contributions specified in 
        this section may not be made to receive allowable service credit 
        under this section if the member does not retain the right to 
        full reinstatement at the end of the leave. 
           Sec. 32.  Minnesota Statutes 1998, section 354.094, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SERVICE CREDIT CONTRIBUTIONS.] Before the 
        end of the fiscal year during which Upon granting any extended 
        leave of absence is granted pursuant to under section 122A.46 or 
        136F.43, the employing unit granting the leave must certify the 
        leave to the association on a form specified by the executive 
        director.  A member granted an extended leave of absence 
        pursuant to under section 122A.46 or 136F.43 may pay employee 
        contributions and receive allowable service credit toward 
        annuities and other benefits under this chapter, for each year 
        of the leave, provided that the member and the employing board 
        make the required employer contribution in any proportion they 
        may agree upon, during the period of the leave.  which shall The 
        leave period must not exceed five years.  A member may not 
        receive more than five years of allowable service credit under 
        this section.  The employee and employer contributions must be 
        based upon the rates of contribution prescribed by section 
        354.42 for the salary received during the year immediately 
        preceding the extended leave.  Payments for the years for which 
        a member is receiving service credit while on extended leave 
        must be made on or before the later of June 30 of each fiscal 
        year for which service credit is received or within 30 days 
        after first notification of the amount due, if requested by the 
        member, is given by the association.  No payment is permitted 
        after the following September 30.  Payments received after June 
        30 must include interest at an annual rate of 8.5 percent from 
        June 30 through the end of the month in which payment is 
        received.  Notwithstanding the provisions of any agreements to 
        the contrary, employee and employer contributions may not be 
        made to receive allowable service credit if the member does not 
        have full reinstatement rights as provided in section 122A.46 or 
        136F.43, both during and at the end of the extended leave. 
           Sec. 33.  Minnesota Statutes 1998, section 354.10, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AUTOMATIC DEPOSITS.] Upon receipt of the 
        properly completed forms as provided by the executive director, 
        the annuity or, benefit or refund amount may be electronically 
        transferred or the annuity or benefit check may be mailed to a 
        banking institution, savings association, or credit union any 
        financial institution associated with the National Automated 
        Clearinghouse Association or a comparable successor organization 
        for deposit to the recipient's individual account or joint 
        account with the recipient's spouse or any other person 
        designated by the recipient.  An overpayment to a joint account 
        after the death of the annuity or benefit recipient must be 
        repaid to the fund by the joint tenant if the overpayment is not 
        repaid to the fund by the banking institution, savings 
        association, or credit union financial institution associated 
        with the National Automated Clearinghouse Association or its 
        successor.  The board may prescribe the conditions which govern 
        these procedures. 
           Sec. 34.  Minnesota Statutes 1998, section 354.35, is 
        amended to read: 
           354.35 [OPTIONAL ACCELERATED RETIREMENT ANNUITY BEFORE AGE 
        65 NORMAL RETIREMENT AGE.] 
           Any coordinated member who retires before age 65 may elect 
        to receive an optional accelerated retirement annuity from the 
        association which provides for different annuity amounts over 
        different periods of retirement.  The election of this optional 
        accelerated retirement annuity is exercised by making an 
        application to the board on a form provided by the executive 
        director.  The optional accelerated retirement annuity must take 
        the form of an annuity payable for the period before the member 
        attains age 65 in a greater amount than the amount of the 
        annuity calculated under section 354.44 on the basis of the age 
        of the member at retirement, but the optional accelerated 
        retirement annuity must be the actuarial equivalent of the 
        member's annuity computed on the basis of the member's age at 
        retirement.  The greater amount must be paid until the retiree 
        reaches age 65 and at that time the payment from the association 
        must be reduced.  For each year the retiree is under age 65, up 
        to five percent of the total life annuity required reserves may 
        be used to accelerate the optional retirement annuity under this 
        section.  At retirement, members who retire before age 62 may 
        elect to have the age specified in this section be 62 instead of 
        65.  This election is irrevocable and may be made only once on 
        the application form provided by the executive director.  The 
        method of computing the optional accelerated retirement annuity 
        provided in this section is established by the board of 
        trustees.  In establishing the method of computing the optional 
        accelerated retirement annuity, the board of trustees must 
        obtain the written approval of the commission-retained actuary.  
        The written approval must be a part of the permanent records of 
        the board of trustees.  The election of an optional accelerated 
        retirement annuity is exercised by making an application on a 
        form provided by the executive director.  
           Sec. 35.  Minnesota Statutes 1998, section 354.46, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [SURVIVOR COVERAGE TERM CERTAIN.] In lieu of the 
        100 percent optional annuity under subdivision 2, or a refund 
        under section 354.47, subdivision 1, the surviving spouse of a 
        deceased member may elect to receive survivor coverage in a term 
        certain of five, ten, 15, or 20 years, but monthly payments must 
        not exceed 75 percent of the average high-five monthly salary of 
        the deceased member.  The monthly term certain annuity must be 
        actuarially equivalent to the 100 percent optional annuity under 
        subdivision 2. 
           If a surviving spouse elects a term certain payment 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 surviving spouse's estate. 
           Sec. 36.  Minnesota Statutes 1998, section 354.47, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEATH BEFORE RETIREMENT.] (1) (a) If a 
        member dies before retirement and is covered under section 
        354.44, subdivision 2, and neither an optional annuity, nor a 
        reversionary annuity, nor a benefit under section 354.46, 
        subdivision 1, is payable to the survivors if the member was a 
        basic member, then the surviving spouse, or if there is no 
        surviving spouse, the designated beneficiary is entitled to an 
        amount equal to the member's accumulated deductions with 
        interest credited to the account of the member to the date of 
        death of the member.  If the designated beneficiary is a minor, 
        interest must be credited to the date the beneficiary reaches 
        legal age, or the date of receipt, whichever is earlier. 
           (2) (b) If a member dies before retirement and is covered 
        under section 354.44, subdivision 6, and neither an optional 
        annuity, nor reversionary annuity, nor the benefit described in 
        section 354.46, subdivision 1, is payable to the survivors if 
        the member was a basic member, then the surviving spouse, or if 
        there is no surviving spouse, the designated beneficiary is 
        entitled to an amount equal to the member's accumulated 
        deductions credited to the account of the member as of June 30, 
        1957, and from July 1, 1957, to the date of death of the member, 
        the member's accumulated deductions plus six percent interest at 
        the rate of six percent per annum compounded annually. 
           (c) If the designated beneficiary under paragraph (b) is a 
        minor, any interest credited under that paragraph must be 
        credited to the date the beneficiary reaches legal age, or the 
        date of receipt, whichever is earlier. 
           Sec. 37.  Minnesota Statutes 1998, section 354.48, 
        subdivision 6, is amended to read: 
           Subd. 6.  [REGULAR PHYSICAL EXAMINATIONS.] At least once 
        each year during the first five years following the allowance of 
        a disability benefit to any member, and at least once in every 
        three-year period thereafter, the executive director shall 
        require the disability beneficiary to undergo a medical 
        examination to be made at the place of residence of such person, 
        or at any other place mutually agreed upon, by a physician or 
        physicians engaged by the executive director.  If any 
        examination indicates that the member is no longer permanently 
        and totally disabled or that the member is engaged or is able to 
        engage in a substantial gainful occupation, payments of the 
        disability benefit by the association shall be discontinued.  
        The payments shall discontinue as soon as the member is 
        reinstated to the payroll following sick leave, but payment may 
        not be made for more than 60 days after physicians engaged by 
        the executive director find that the person is no longer 
        permanently and totally disabled. 
           Sec. 38.  Minnesota Statutes 1998, section 354.49, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ENTITLEMENT, APPLICATION.] A person who 
        ceases to render teaching service in any school or institution 
        to which the provisions of this chapter apply is entitled to a 
        refund provided in subdivision 2, or a deferred retirement 
        annuity under section 354.55, subdivision 11.  An application 
        for a refund must not be made sooner than 30 days after 
        termination of teaching service if the applicant has not again 
        become a teacher.  This payment must be made within 90 45 days 
        after the receipt of an application for a refund or upon 
        completion of processing the report made pursuant to section 
        354.52, subdivision 2 the receipt of member reporting data under 
        section 354.52, subdivision 4a, and payroll cycle data under 
        section 354.52, subdivision 4b, whichever is later. 
           Sec. 39.  Minnesota Statutes 1998, section 354.52, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DUTY OF FINANCE OFFICIALS DEDUCTION 
        REQUIREMENTS.] It is the duty of each person, officer, school 
        board, or managing body required by law to draw the warrants or 
        orders for payment of salaries to teachers to Every pay period, 
        each employer shall deduct and withhold from all the salary paid 
        each pay period to of every teacher who is a member of the fund 
        the amount which the teacher is required to pay into the fund 
        and, required under section 354.42.  At the time of each 
        deduction, to the employer shall also furnish to each teacher a 
        statement showing the amount of the deduction.  
           Sec. 40.  Minnesota Statutes 1998, section 354.52, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REPORTING AND REMITTANCE REQUIREMENTS.] At least 
        once each month, a representative authorized by An employing 
        unit employer shall transmit remit all amounts due to the 
        association and furnish a signed statement indicating the amount 
        due and transmitted with any other information required by the 
        executive director.  Signing the statement has the force and 
        effect of an oath as to the correctness of the amount due and 
        transmitted.  If an amount due and is not transmitted 
        received by the association within seven calendar days of the 
        payroll warrant, the amount accrues interest at an annual rate 
        of 8.5 percent compounded annually commencing 15 days after from 
        the due date first due until the amount is transmitted and must 
        be paid by the employing unit.  These payments received by the 
        association.  All amounts due and other employing unit employer 
        obligations not remitted within 60 days of notification by the 
        association must be certified to the commissioner of finance who 
        shall deduct the amount from any state aid or appropriation 
        amount applicable to the employing unit. 
           Sec. 41.  Minnesota Statutes 1998, section 354.52, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [MEMBER DATA REPORTING REQUIREMENTS.] (a) An 
        employing unit shall must initially provide the following member 
        data specified in paragraph (b) or any of that data not 
        previously provided to the association for payroll warrants 
        dated after June 30, 1995, in a format prescribed by the 
        executive director.  Data changes and the dates of those changes 
        under this subdivision must be reported to the association on an 
        ongoing basis for within 14 calendar days after the date of the 
        end of the payroll cycle in which they occur.  These data 
        changes must be reported with the payroll cycle data under 
        subdivision 4b. 
           (b) Data on the member includes:  
           (1) legal name, address, date of birth, association member 
        number, employer-assigned employee number, and social security 
        number; 
           (2) association status, including, but not limited to, 
        basic, coordinated, exempt annuitant, exempt technical college 
        teacher, and exempt independent contractor or consultant; 
           (3) employment status, including, but not limited to, full 
        time, part time, intermittent, substitute, or part-time 
        mobility; 
           (4) employment position, including, but not limited to, 
        teacher, superintendent, principal, administrator, or other; 
           (5) employment activity, including, but not limited to, 
        hire, termination, resumption of employment, disability, or 
        death; 
           (6) leaves of absence; 
           (7) county district number assigned by the association for 
        the employing unit; 
           (8) data center identification number, if applicable; and 
           (9) other information as may be required by the executive 
        director. 
           Sec. 42.  Minnesota Statutes 1998, section 354.52, 
        subdivision 4b, is amended to read: 
           Subd. 4b.  [PAYROLL CYCLE REPORTING REQUIREMENTS.] An 
        employing unit shall provide the following data to the 
        association for payroll warrants dated after June 30, 1995, for 
        each on an ongoing basis within 14 calendar days after the date 
        of the payroll cycle warrant in a format prescribed by the 
        executive director:  
           (1) association member number; 
           (2) employer-assigned employee number; 
           (3) social security number; 
           (4) amount of each salary deduction; 
           (5) amount of salary as defined in section 354.05, 
        subdivision 35, from which each deduction was made; 
           (6) reason for payment; 
           (7) service credit; 
           (8) the beginning and ending dates of the payroll period 
        covered and the date of actual payment; 
           (9) fiscal year of salary earnings; 
           (10) total remittance amount including employee, employer, 
        and additional employer contributions; and 
           (11) other information as may be required by the executive 
        director. 
           Sec. 43.  Minnesota Statutes 1998, section 354.63, 
        subdivision 2, is amended to read: 
           Subd. 2.  [VALUATION OF ASSETS; ADJUSTMENT OF BENEFITS.] 
        (1) The required reserves for retirement annuities as determined 
        in accordance with under this chapter shall must be transferred 
        to the Minnesota postretirement investment fund as of no later 
        than the last business day of the month in which the retirement 
        annuity begins.  The required reserves shall be determined in 
        accordance with the appropriate annuity table of mortality 
        adopted by the board of trustees as provided in section 354.07, 
        subdivision 1, based on the experience of the fund as 
        recommended by the commission-retained actuary and using the 
        interest assumption specified in section 356.215, subdivision 4d.
           (2) Annuity payments shall be adjusted as provided in 
        accordance with the provisions of section 11A.18.  In making 
        these adjustments, members who retire effective July 1 shall be 
        considered to have retired effective the preceding June 
        30.  This section applies to persons who retired effective July 
        1, 1982, or later.  
           (3) An increase in annuity payments pursuant to under this 
        section will be made automatically unless written notice is 
        filed by the annuitant with the executive director of the 
        teachers retirement association requesting that the increase 
        shall not be made. 
           Sec. 44.  Minnesota Statutes 1998, section 356.30, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY; COMPUTATION OF ANNUITY.] 
        (1) (a) Notwithstanding any provisions to the contrary of the 
        laws governing the funds plans enumerated in subdivision 3, a 
        person who has met the qualifications of clause (2) paragraph 
        (b) may elect to receive a retirement annuity from each fund 
        plan in which the person has at least six months one-half year 
        of allowable service, based on the allowable service in 
        each fund plan, subject to the provisions of clause 
        (3) paragraph (c).  
           (2) (b) A person may receive upon retirement a retirement 
        annuity from each fund plan in which the person has at least six 
        months one-half year of allowable service, and augmentation of a 
        deferred annuity calculated under the laws governing each public 
        pension plan or fund named in subdivision 3, from the date the 
        person terminated all public service if: 
           (a) (1) the person has allowable service totaling an amount 
        that allows the person to receive an annuity in any two or more 
        of the enumerated funds plans; and 
           (b) (2) the person has not begun to receive an annuity from 
        any enumerated fund plan or the person has made application for 
        benefits from all funds each applicable plan and the effective 
        dates of the retirement annuity with each fund plan under which 
        the person chooses to receive an annuity are within a one-year 
        period.  
           (3) (c) The retirement annuity from each fund plan must be 
        based upon the allowable service, accrual rates, and average 
        salary in each fund, except that the applicable plan as further 
        specified or modified in the following clauses:  
           (a) (1) the laws governing annuities must be the law in 
        effect on the date of termination from the last period of public 
        service under a covered fund plan with which the person earned a 
        minimum of one-half year of allowable service credit during that 
        employment.; 
           (b) (2) the "average salary" on which the annuity from each 
        covered fund plan in which the employee has credit in a formula 
        plan shall be based on the employee's highest five successive 
        years of covered salary during the entire service in 
        covered funds. plans; 
           (c) (3) The formula percentages accrual rates to be used by 
        each fund plan must be those percentages prescribed by 
        each fund's plan's formula as continued for the respective years 
        of allowable service from one fund plan to the next, recognizing 
        all previous allowable service with the other 
        covered funds. plans; 
           (d) (4) allowable service in all the funds plans must be 
        combined in determining eligibility for and the application of 
        each fund's plan's provisions in respect to actuarial reduction 
        in the annuity amount for retirement prior to normal retirement. 
        age; and 
           (e) (5) the annuity amount payable for any allowable 
        service under a nonformula plan of a covered fund plan must not 
        be affected but such service and covered salary must be used in 
        the above calculation.  
           (f) (d) This section shall does not apply to any person 
        whose final termination from the last public service under a 
        covered fund plan is prior to May 1, 1975.  
           (g) (e) For the purpose of computing annuities under this 
        section the formula percentages accrual rates used by any 
        covered fund plan, except the public employees police and 
        fire fund plan and the state patrol retirement fund plan, must 
        not exceed the percent specified in section 356.19, subdivision 
        4, per year of service for any year of service or fraction 
        thereof.  The formula percentage accrual rate used by the public 
        employees police and fire fund plan and the state patrol 
        retirement fund plan must not exceed the percent specified in 
        section 356.19, subdivision 6, per year of service for any year 
        of service or fraction thereof.  The formula percentage accrual 
        rate or rates used by the legislators retirement plan and the 
        elective state officers retirement plan must not exceed 2.5 
        percent, but this limit does not apply to the adjustment 
        provided under section 3A.02, subdivision 1, paragraph (c), or 
        352C.031, paragraph (b). 
           (h) (f) Any period of time for which a person has credit in 
        more than one of the covered funds plans must be used only once 
        for the purpose of determining total allowable service.  
           (i) (g) If the period of duplicated service credit is more 
        than six months one-half year, or the person has credit for more 
        than six months one-half year, with each of the funds plans, 
        each fund shall plan must apply its formula to a prorated 
        service credit for the period of duplicated service based on a 
        fraction of the salary on which deductions were paid to that 
        fund for the period divided by the total salary on which 
        deductions were paid to all funds plans for the period.  
           (j) (h) If the period of duplicated service credit is less 
        than six months one-half year, or when added to other service 
        credit with that fund plan is less than six months one-half 
        year, the service credit must be ignored and a refund of 
        contributions made to the person in accord with that fund's 
        plan's refund provisions. 
           Sec. 45.  [356.90] [COMBINED PAYMENT.] 
           (a) The public employees retirement association and the 
        Minnesota state retirement system are permitted to combine 
        payments to retirees.  The total payment must be equal to the 
        amount that is payable if payments were kept separate.  The 
        retiree must agree, in writing, to have the payment combined. 
           (b) Each plan must calculate the benefit amounts under the 
        laws governing the plan and the required reserves and future 
        mortality losses or gains must be paid or accrued to the plan 
        from which the service was earned.  Each plan must account for 
        their portion of the payment separately, and there may be no 
        additional liabilities realized by either fund. 
           (c) The fund making payment would be responsible for 
        issuing one payment, making address changes, tax withholding 
        changes, and other administrative functions needed to process 
        the payment. 
           Sec. 46.  [INSTRUCTION TO REVISOR.] 
           The revisor of statutes shall change the term "six months" 
        to "one-half year" wherever it appears in Minnesota Statutes, 
        sections 356.302 and 356.303. 
           Sec. 47.  [REPEALER.] 
           Minnesota Statutes 1998, sections 353.024; and 354.52, 
        subdivision 2, are repealed. 
           Sec. 48.  [EFFECTIVE DATE.] 
           (a) Sections 1 to 47 are effective on July 1, 2000. 
           (b) Section 26 is not intended to increase or decrease any 
        surviving spouse benefit compared to the surviving spouse 
        benefit payable immediately prior to July 1, 2000. 

                                   ARTICLE 4
                            MILITARY SERVICE CREDIT
                             PURCHASE AUTHORIZATION
           Section 1.  [352.275] [UNCREDITED MILITARY SERVICE CREDIT 
        PURCHASE.] 
           Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
        state employee who has at least three years of allowable service 
        with the Minnesota state retirement system and who performed 
        service in the United States armed forces before becoming a 
        state employee, or who failed to obtain service credit for a 
        military leave of absence under section 352.27, is entitled to 
        purchase allowable service credit for the initial period of 
        enlistment, induction, or call to active duty without any 
        voluntary extension by making payment under section 356.55 if 
        the employee is not entitled to receive a current or deferred 
        retirement annuity from a United States armed forces pension 
        plan and has not purchased service credit from any other defined 
        benefit public employee pension plan for the same period of 
        service. 
           Subd. 2.  [APPLICATION AND DOCUMENTATION.] An employee who 
        desires to purchase service credit under subdivision 1 must 
        apply with the executive director to make the purchase.  The 
        application must include all necessary documentation of the 
        employee'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. 
           Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
        for the purchase period must be granted by the Minnesota state 
        retirement system to the purchasing employee upon receipt of the 
        purchase payment amount.  Payment must be made before the 
        employee's effective date of retirement. 
           Sec. 2.  Minnesota Statutes 1998, section 352B.01, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [UNCREDITED MILITARY SERVICE CREDIT 
        PURCHASE.] (a) A member who has at least three years of 
        allowable service with the state patrol retirement plan under 
        subdivision 3 and who performed service in the United States 
        armed forces before becoming a member is entitled to purchase 
        allowable service credit for the initial period of enlistment, 
        induction, or call to active duty without any voluntary 
        extension by making payment under section 356.55, if the 
        employee is not entitled to receive a current or deferred 
        retirement annuity from a United States armed forces pension 
        plan and has not purchased service credit from any other defined 
        benefit public employee pension plan for the same period of 
        service. 
           (b) A member who desires to purchase service credit under 
        paragraph (a) must apply with the executive director to make the 
        purchase.  The application must include all necessary 
        documentation of the member'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. 
           (c) Allowable service credit for the purchase period must 
        be granted by the state patrol retirement plan to the purchasing 
        employee upon receipt of the purchase payment amount.  Payment 
        must be made before the effective date of retirement of the 
        member. 
           Sec. 3.  Minnesota Statutes 1998, section 353.01, is 
        amended by adding a subdivision to read: 
           Subd. 16a.  [UNCREDITED MILITARY SERVICE CREDIT PURCHASE.] 
        (a) A public employee who has at least three years of allowable 
        service with the public employees retirement association or the 
        public employees police and fire plan and who performed service 
        in the United States armed forces before becoming a public 
        employee, or who failed to obtain service credit for a military 
        leave of absence under subdivision 16, paragraph (h), is 
        entitled to purchase allowable service credit for the initial 
        period of enlistment, induction, or call to active duty without 
        any voluntary extension by making payment under section 356.55 
        if the public employee is not entitled to receive a current or 
        deferred retirement annuity from a United States armed forces 
        pension plan and has not purchased service credit from any other 
        defined benefit public employee pension plan for the same period 
        of service. 
           (b) A public employee who desires to purchase service 
        credit under paragraph (a) must apply with the executive 
        director to make the purchase.  The application must include all 
        necessary documentation of the public employee'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. 
           (c) Allowable service credit for the purchase period must 
        be granted by the public employees association or the public 
        employees police and fire plan, whichever applies, to the 
        purchasing public employee upon receipt of the purchase payment 
        amount.  Payment must be made before the effective date of 
        retirement of the public employee. 
           Sec. 4.  [EFFECTIVE DATE; SUNSET REPEALER.] 
           (a) Sections 1, 2, and 3 are effective on the day following 
        final enactment. 
           (b) Sections 1, 2, and 3 are repealed on May 16, 2003. 

                                   ARTICLE 5
                       RETIREMENT HEALTH CARE PROVISIONS
           Section 1.  [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE 
        TASK FORCE.] 
           (a) The commissioner of employee relations shall convene a 
        task force on postretirement and active employee health care.  
        The task force shall identify strategies for providing 
        postretirement and active employee health care coverage for 
        public employees and make recommendations regarding the most 
        appropriate and efficient manner for providing postretirement 
        and active employee health care. 
           (b) One-half of the task force membership must be composed 
        of employees and the other half of the membership must be 
        composed of employers. The task force must include, but is not 
        limited to, the following: 
           (1) a representative of the department of employee 
        relations; 
           (2) a representative of the Minnesota state retirement 
        system; 
           (3) a representative of the teachers retirement 
        association; 
           (4) a representative of the public employees retirement 
        association; 
           (5) a representative of the first class city teacher 
        retirement fund associations; 
           (6) a representative of the first class city police and 
        fire department relief associations; 
           (7) a representative of the Minneapolis employees 
        retirement fund; 
           (8) a representative of the legislative coordinating 
        commission subcommittee on employee relations; 
           (9) one representative each from the Minnesota school 
        boards association, Minnesota service cooperatives, the 
        association of Minnesota counties, the Minnesota association of 
        townships, and the league of Minnesota cities; 
           (10) representatives of the exclusive representatives of 
        affected public employees; and 
           (11) representatives of major public employers. 
           (c) The task force shall report its findings and 
        recommendations to the legislature by November 15, 2000.  The 
        report shall address: 
           (1) alternative methods of providing and paying for 
        postretirement and active employee health care; 
           (2) the estimated cost of providing postretirement and 
        active employee health care under various alternatives, 
        including statewide, regional, or market alternatives; 
           (3) the most efficient administrative structure for 
        providing for postretirement and active employee health care; 
        and 
           (4) issues of adverse selection, cost containment, consumer 
        choice, and options for dealing with other employee concerns. 
           (d) The task force shall conduct the study and assemble 
        data in a manner that will provide for the ability to conduct 
        analysis for subsets of the groups being studied by employer and 
        employee types. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective on the day following final enactment.

                                   ARTICLE 6
                       MSRS-CORRECTIONAL PLAN MEMBERSHIP 
                                   INCLUSIONS 
           Section 1.  Minnesota Statutes 1998, section 352.91, 
        subdivision 3c, is amended to read: 
           Subd. 3c.  [NURSING PERSONNEL.] (a) "Covered correctional 
        service" means service by a state employee in one of the 
        employment positions at a correctional facility or at the 
        Minnesota security hospital specified in paragraph (b), provided 
        that at least 75 percent of the employee's working time is spent 
        in direct contact with inmates or patients and the fact of this 
        direct contact is certified to the executive director by the 
        appropriate commissioner, unless the person elects to retain the 
        current retirement coverage under Laws 1996, chapter 408, 
        article 8, section 21. 
           (b) The employment positions are as follows: 
           (1) registered nurse - senior; 
           (2) registered nurse; 
           (3) registered nurse - principal; and 
           (4) licensed practical nurse 2; and 
           (5) registered nurse practitioner. 
           Sec. 2.  Minnesota Statutes 1998, section 352.91, 
        subdivision 3d, is amended to read: 
           Subd. 3d.  [OTHER CORRECTIONAL PERSONNEL.] (a) "Covered 
        correctional service" means service by a state employee in one 
        of the employment positions at a correctional facility or at the 
        Minnesota security hospital specified in paragraph (b), provided 
        that at least 75 percent of the employee's working time is spent 
        in direct contact with inmates or patients and the fact of this 
        direct contact is certified to the executive director by the 
        appropriate commissioner, unless the person elects to retain the 
        current retirement coverage under Laws 1996, chapter 408, 
        article 8, section 21. 
           (b) The employment positions are as follows:  baker, 
        chemical dependency counselor supervisor, chief cook, cook, cook 
        coordinator, corrections behavior therapist, corrections 
        behavior therapist specialist, corrections parent education 
        coordinator, corrections security caseworker, corrections 
        security caseworker career, corrections teaching assistant, 
        dentist, electrician supervisor, general repair worker, 
        library/information research services specialist, 
        library/information research services specialist senior, plumber 
        supervisor, psychologist 3, recreation therapist, recreation 
        therapist coordinator, recreation program assistant, recreation 
        therapist senior, stores clerk senior, water treatment plant 
        operator, work therapy technician, work therapy assistant, work 
        therapy program coordinator. 
           (c) "Covered correctional service" also means service as 
        the director or as an assistant group supervisor of the 
        Phoenix/Pomiga treatment/behavior change program of the 
        department of corrections. 
           Sec. 3.  Minnesota Statutes 1998, section 352.91, is 
        amended by adding a subdivision to read: 
           Subd. 3f.  [ADDITIONAL DEPARTMENT OF HUMAN SERVICES 
        PERSONNEL.] (a) "Covered correctional service" means service by 
        a state employee in one of the employment positions specified in 
        paragraph (b) at the Minnesota security hospital or the 
        Minnesota sexual psychopathic personality treatment center, 
        provided that at least 75 percent of the employee's working time 
        is spent in direct contact with patients and the fact of this 
        direct contact is certified to the executive director by the 
        commissioner of human services. 
           (b) The employment positions are: 
           (1) behavior analyst 2; 
           (2) licensed practical nurse 1; 
           (3) office and administrative specialist senior; 
           (4) psychologist 2; 
           (5) social worker specialist; 
           (6) behavior analyst 3; and 
           (7) social worker senior. 
           Sec. 4.  Minnesota Statutes 1998, section 352.91, is 
        amended by adding a subdivision to read: 
           Subd. 3g.  [ADDITIONAL CORRECTIONS DEPARTMENT 
        PERSONNEL.] (a) "Covered correctional service" means service by 
        a state employee in one of the employment positions at the 
        designated Minnesota correctional facility specified in 
        paragraph (b), provided that at least 75 percent of the 
        employee's working time is spent in direct contact with inmates 
        and the fact of this direct contact is certified to the 
        executive director by the commissioner of corrections. 
           (b) The employment positions and correctional facilities 
        are: 
           (1) corrections discipline unit supervisor, at the 
        Minnesota correctional facility-Faribault, the Minnesota 
        correctional facility-Lino Lakes, the Minnesota correctional 
        facility-Oak Park Heights, and the Minnesota correctional 
        facility-St. Cloud; 
           (2) dental assistant registered, at the Minnesota 
        correctional facility-Faribault, the Minnesota correctional 
        facility-Lino Lakes, the Minnesota correctional facility-Moose 
        Lake, the Minnesota correctional facility-Oak Park Heights, and 
        the Minnesota correctional facility-Red Wing; 
           (3) dental hygienist, at the Minnesota correctional 
        facility-Shakopee; 
           (4) psychologist 2, at the Minnesota correctional 
        facility-Faribault, the Minnesota correctional facility-Lino 
        Lakes, the Minnesota correctional facility-Moose Lake, the 
        Minnesota correctional facility-Oak Park Heights, the Minnesota 
        correctional facility-Red Wing, the Minnesota correctional 
        facility-St. Cloud, the Minnesota correctional 
        facility-Shakopee, and the Minnesota correctional 
        facility-Stillwater; and 
           (5) sentencing to service crew leader involved with the 
        inmate community work crew program, at the Minnesota 
        correctional facility-Faribault and the Minnesota correctional 
        facility-Lino Lakes. 
           Sec. 5.  [COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN 
        PERSONS.] 
           Subdivision 1.  [ELECTION OF PRIOR STATE SERVICE 
        COVERAGE.] (a) An employee who has future retirement coverage 
        transferred to the correctional employees retirement plan under 
        section 1, 3, or 4, or an employee who has retirement coverage 
        for past correctional service transferred to the correctional 
        employees retirement plan under sections 1 to 4, is entitled to 
        elect to obtain prior service credit for eligible state service 
        performed after June 30, 1975, and before the first day of the 
        first full pay period beginning after June 30, 2000, with the 
        department of corrections or the department of human services at 
        the Minnesota security hospital or the Minnesota sexual 
        psychopathic personality treatment center.  All eligible prior 
        service credit must be purchased. 
           (b) For purposes of section 1, 3, or 4, eligible state 
        service with the department of corrections or the department of 
        human services is any prior period of continuous service after 
        June 30, 1975, performed as an employee of the department of 
        corrections or the department of human services that would have 
        been eligible for the correctional employees retirement plan 
        coverage under section 1, 3, or 4 if that prior service had been 
        performed after the first day of the first full pay period 
        beginning after June 30, 2000, rather than before that date.  
        Service is continuous if there has been no period of 
        discontinuation of eligible state service for a period greater 
        than 180 calendar days.  For purposes of section 2, paragraph 
        (c), eligible state service is any period of service on or after 
        the date which the employee started employment with the Phoenix 
        treatment/behavior change program in a position specified in 
        Minnesota Statutes, section 352.91, subdivision 3d, paragraph 
        (c), in which at least 75 percent of the employee's working time 
        is determined to have been spent in direct contact with program 
        participants, and the date the employee joined the correctional 
        employees plan. 
           (c) The commissioner of corrections or the commissioner of 
        human services shall certify eligible state service to the 
        executive director of the Minnesota state retirement system. 
           (d) A covered correctional plan employee employed on July 
        1, 2000, who has past service in a job classification covered 
        under sections 1 to 4 on July 1, 2000, is entitled to purchase 
        the past service if the applicable department certifies that the 
        employee met the eligibility requirements for coverage.  The 
        employee shall pay the difference between the employee 
        contributions actually paid during the period and what should 
        have been paid under the correctional employees retirement 
        plan.  Payment for past service must be completed by June 30, 
        2002. 
           Subd. 2.  [PAYMENT FOR PAST SERVICE.] (a) An employee 
        electing to obtain prior service credit under subdivision 1 must 
        pay an additional employee contribution for that prior service.  
        The additional member contribution is the contribution 
        differential percentage applied to the actual salary paid to the 
        employee during the period of the prior eligible state service, 
        plus interest at the rate of six percent per annum, compounded 
        annually.  The contribution differential percentage is the 
        difference between 4.9 percent of salary and the applicable 
        employee contribution rate of the general state employees 
        retirement plan during the prior eligible state service. 
           (b) The additional member contribution must be paid only in 
        a lump sum.  Payment must accompany the election to obtain prior 
        service credit.  No election of payment may be made by the 
        person or accepted by the executive director after June 30, 2002.
           Subd. 3.  [TRANSFER OF ASSETS.] Assets must be transferred 
        from the general state employees retirement plan to the 
        correctional employees retirement plan, in an amount equal to 
        the present value of benefits earned under the general employees 
        retirement plan for each employee transferring to the 
        correctional employees retirement plan, as determined by the 
        actuary retained by the legislative commission on pensions and 
        retirement in accordance with Minnesota Statutes, section 
        356.215.  The transfer of assets must be made within 45 days 
        after the employee elects to transfer coverage to the 
        correctional employees retirement plan. 
           Subd. 4.  [EFFECT OF THE ASSET TRANSFER.] Upon transfer of 
        assets in subdivision 3, service credit in the general state 
        employees plan of the Minnesota state retirement system is 
        forfeited and may not be reinstated.  The service credit and 
        transferred assets must be credited to the correctional 
        employees retirement plan. 
           Subd. 5.  [PAYMENT OF ACTUARIAL CALCULATION COSTS.] (a) The 
        expense of the legislative commission on pensions and retirement 
        attributable to the calculations of its consulting actuary under 
        subdivision 3 must be reimbursed by the department of 
        corrections and the department of human services. 
           (b) The expense reimbursement under paragraph (a) must be 
        allocated between the two departments in a manner that is 
        jointly agreeable.  If no allocation procedure is developed by 
        the commissioner of corrections and the commissioner of human 
        services, the cost must be allocated on an equally shared basis. 
           (c) Payment of the expense reimbursement to the legislative 
        commission on pensions and retirement is due 30 days after the 
        receipt of the reimbursement request from the executive director 
        of the legislative commission on pensions and retirement. 
           Sec. 6.  [REPEALER.] 
           Minnesota Statutes 1998, section 352.91, subdivision 4, is 
        repealed. 
           Sec. 7.  [EFFECTIVE DATE.] 
           Sections 1 to 6 are effective July 1, 2000. 

                                   ARTICLE 7
                    PERA AND PERA-P&F MEMBERSHIP INCLUSIONS
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        353.01, subdivision 2b, is amended to read: 
           Subd. 2b.  [EXCLUDED EMPLOYEES.] The following public 
        employees shall not participate as members of the association 
        with retirement coverage by the public employees retirement plan 
        or the public employees police and fire retirement plan: 
           (1) elected public officers, or persons appointed to fill a 
        vacancy in an elective office, who do not elect to participate 
        in the association by filing an application for membership; 
           (2) election officers; 
           (3) patient and inmate personnel who perform services in 
        charitable, penal, or correctional institutions of a 
        governmental subdivision; 
           (4) employees who are hired for a temporary position under 
        subdivision 12a, and employees who resign from a nontemporary 
        position and accept a temporary position within 30 days in the 
        same governmental subdivision, but not those employees who are 
        hired for an unlimited period but are serving a probationary 
        period.  If the period of employment extends beyond six 
        consecutive months and the employee earns more than $425 from 
        one governmental subdivision in any one calendar month, the 
        department head shall report the employee for membership and 
        require employee deductions be made on behalf of the employee 
        under section 353.27, subdivision 4. 
           Membership eligibility of an employee who resigns or is 
        dismissed from a temporary position and within 30 days accepts 
        another temporary position in the same governmental subdivision 
        is determined on the total length of employment rather than on 
        each separate position.  Membership eligibility of an employee 
        who holds concurrent temporary and nontemporary positions in one 
        governmental subdivision is determined by the length of 
        employment and salary of each separate position; 
           (5) employees whose actual salary from one governmental 
        subdivision does not exceed $425 per month, or whose annual 
        salary from one governmental subdivision does not exceed a 
        stipulation prepared in advance, in writing, that the salary 
        must not exceed $5,100 per calendar year or per school year for 
        school employees for employment expected to be of a full year's 
        duration or more than the prorated portion of $5,100 per 
        employment period for employment expected to be of less than a 
        full year's duration; 
           (6) employees who are employed by reason of work emergency 
        caused by fire, flood, storm, or similar disaster; 
           (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, the Duluth teachers retirement fund association, 
        the Minneapolis teachers retirement association, the St. Paul 
        teachers retirement fund association, the Minneapolis employees 
        retirement fund, or any police or firefighters relief 
        association governed by section 69.77 that has not consolidated 
        with the public employees retirement association, or any local 
        police or firefighters consolidation account but who have not 
        elected the type of benefit coverage provided by the public 
        employees police and fire fund under sections 353A.01 to 
        353A.10, or any persons covered by section 353.665, subdivision 
        4, 5, or 6, who have not elected public employees police and 
        fire plan benefit coverage.  This clause 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 fund for other 
        service occurring during the same period of time.  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 fund 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 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 through 
        January 1, 1987, if no irrevocable election of coverage has been 
        made under section 3121(r) of the Internal Revenue Code of 1954, 
        as amended; 
           (9) full-time students who are enrolled and are regularly 
        attending classes at an accredited school, college, or 
        university and who are part-time employees as defined by a 
        governmental subdivision; 
           (10) resident physicians, medical interns, and pharmacist 
        residents and pharmacist interns who are serving in a degree or 
        residency program in public hospitals; 
           (11) students who are serving in an internship or residency 
        program sponsored by an accredited educational institution; 
           (12) persons who hold a part-time adult supplementary 
        technical college license who render part-time teaching service 
        in a technical college; 
           (13) foreign citizens working for a governmental 
        subdivision with a work permit of less than three years, or an 
        H-1b visa valid for less than three years of employment.  Upon 
        notice to the association that the work permit or visa extends 
        beyond the three-year period, the foreign citizens are eligible 
        for membership from the date of the extension; 
           (14) 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; 
           (15) 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 public employees retirement fund or the 
        public employees police and fire fund on the basis of 
        compensation received from public employment service other than 
        service as volunteer ambulance service personnel; 
           (16) except as provided in section 353.87, volunteer 
        firefighters, as defined in subdivision 36, engaging in 
        activities undertaken as part of volunteer firefighter duties; 
        provided that 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 public employees retirement fund or the 
        public employees police and fire fund on the basis of 
        compensation received from public employment activities other 
        than those as a volunteer firefighter; and 
           (17) pipefitters and associated trades personnel employed 
        by independent school district No. 625, St. Paul, with coverage 
        by the pipefitters local 455 pension plan under a collective 
        bargaining agreement 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; 
        and 
           (18) 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 by the electrical workers local 110 pension plan, the 
        united association plumbers local 34 pension plan, or the 
        carpenters local 87 pension plan under a collective bargaining 
        agreement who were either first employed after May 1, 2000, or, 
        if first employed before May 2, 2000, elected to be excluded 
        under section 5. 
           Sec. 2.  Minnesota Statutes 1998, section 353.64, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [PENSION COVERAGE FOR CERTAIN TRIBAL POLICE 
        OFFICERS EXERCISING STATE ARREST POWERS.] (a) The governing body 
        of a tribal police department which is exercising state arrest 
        powers under section 626.90, 626.91, 626.92, or 626.93 may 
        request by resolution to the executive director that its police 
        officers be considered public employees under section 353.01, 
        subdivision 2, be considered a police officer under section 
        353.64, subdivision 1, and become members of the public 
        employees police and fire retirement plan and that the tribal 
        police department be considered a governmental subdivision under 
        section 353.01, subdivision 6.  
           (b) The executive director of the association must approve 
        the request by a tribal police department under paragraph (a) if 
        a ruling made by the federal Internal Revenue Service provides 
        that: 
           (1) the tribal police department is an agency or 
        instrumentality of the state of Minnesota for purposes of 
        enforcing state law; and 
           (2) contributions made by the tribal police department to a 
        retirement plan on behalf of employees of the tribal police 
        department are contributions to a governmental plan within the 
        meaning of section 414(d) of the federal Internal Revenue Code. 
           (c) Following the approval of the request by the executive 
        director, the head of the police department or that person's 
        designee must immediately report for membership in the police 
        and fire fund a person who is employed as a full-time or 
        part-time police officer in a position that meets the conditions 
        in sections 353.01, subdivision 2a, and 353.64, subdivisions 1 
        and 2.  The police department head or that person's designee 
        must deduct the employee contributions from the salary of each 
        eligible police officer as required by section 353.65, 
        subdivision 2, and make the employer contributions required by 
        section 353.65, subdivision 3.  The head of the police 
        department or that person's designee must meet the reporting 
        requirements in section 353.65, subdivision 4. 
           Sec. 3.  [353.666] [PAST SERVICE CREDIT FOR CERTAIN MEMBERS 
        EXTENDED COVERAGE.] 
           (a) A member to whom public employees police and fire 
        retirement plan membership was extended under section 353.64, 
        subdivision 11, may receive retroactive service credit in the 
        public employees police and fire retirement plan for service as 
        a tribal police officer rendered before the effective date of 
        membership of the tribal police department employee in the 
        police and fire fund, provided that the employee and the police 
        department did not make contributions into a qualified 
        tax-deferred retirement plan for that employment period.  
           (b) The request for retroactive coverage must be in writing 
        and must be filed with the association within 60 days of when 
        police and fire fund membership commenced.  The prior service 
        credit purchase payment is governed by section 356.55, except 
        that the member must pay an amount equal to the employee salary 
        deductions.  The employee salary deductions for the retroactive 
        period must be based on the police and fire pension plan member 
        contribution rates in effect when the service was rendered and 
        applied to the salary amount that was earned and paid to the 
        police officer.  The employer must pay the balance of the prior 
        service credit purchase payment amount within 30 days of the 
        member contribution payment. 
           Sec. 4.  Laws 1965, chapter 705, section 1, subdivision 4, 
        as amended by Laws 1995, First Special Session chapter 3, 
        article 8, section 14, and Laws 1997, chapter 241, article 2, 
        section 8, is amended to read: 
           Subd. 4.  [INDEPENDENT SCHOOL DISTRICT NO. 625; 
        APPLICABILITY OF CERTAIN LAWS.] (a) As of July 1, 1965, the 
        organization, operation, maintenance and conduct of the affairs 
        of the converted district shall be governed by general laws 
        relating to independent districts, except as otherwise provided 
        in Extra Session Laws 1959, Chapter 71, as amended, and all 
        special laws and charter provisions relating only to the 
        converted district are repealed.  
           (b) Where an existing pension law is applicable to 
        employees of the special district, such law shall continue to be 
        applicable in the same manner and to the same extent to 
        employees of the converted district.  Notwithstanding this 
        requirement, pipefitters and associated trades personnel with 
        coverage by the pipefitters local 455 pension plan under a 
        collective bargaining agreement who either were first employed 
        after May 1, 1997, or, if first employed before May 2, 1997, 
        elected exclusion from coverage under section 12 and electrical 
        workers, carpenters, and associated trades personnel with 
        coverage by the electrical workers local 110 pension plan, the 
        united association plumbers local 34 pension plan, or the 
        carpenters local 87 pension plan under a collective bargaining 
        agreement who either were first employed after May 1, 2000, or, 
        if first employed before May 2, 2000, elected exclusion from 
        coverage under section 5, are not covered by the public 
        employees retirement association.  
           (c) General laws applicable to independent school districts 
        wholly or partly within cities of the first class shall not be 
        applicable to the converted district.  
           (d) The provision of the statutes applicable only to 
        teachers retirement fund associations in cities of the first 
        class, limiting the amount of annuity to be paid from public 
        funds, limiting the taxes to be levied to carry out the plan of 
        such associations, and limiting the amount of annuities to be 
        paid to beneficiaries shall not be applicable to such converted 
        district, but the statutes applicable to such special district 
        prior to the conversion shall continue to be applicable and the 
        pension plan in operation prior to the conversion shall continue 
        in operation until changed in accordance with law, and the 
        teacher tenure law applicable to the special district shall 
        continue to apply to the converted district in the same manner 
        and to the same extent to teachers in the converted district; 
        provided further, where existing civil service provisions of any 
        law or charter are applicable to special district employees, 
        such provision may continue to be applicable in the same manner 
        and to the same extent to employees of the converted district, 
        unless the board and city governing body each adopt a resolution 
        declaring that civil service bureau (city human resources 
        department) functions would be more efficiently and effectively 
        administered separately in each jurisdiction.  Notwithstanding 
        any contrary provision of Extra Session Laws 1959, Chapter 71, 
        as amended, if there was in the special district a teachers 
        retirement fund association operating and existing under the 
        provisions of Laws 1909, Chapter 343, and all acts amendatory 
        thereof, then such teachers retirement fund association shall 
        continue to exist and operate in the converted district under 
        and to be subject to the provisions of Laws 1909, Chapter 343, 
        and all acts amendatory thereof, to the same extent and in the 
        same manner as before the conversion, and, without limiting the 
        generality of the foregoing, such teachers retirement fund 
        association shall continue, after the conversion as before the 
        conversion, to certify to the same authorities the amount 
        necessary to raise by taxation in order to carry out its 
        retirement plan, and it shall continue, after the conversion as 
        before the conversion, to be the duty of said authorities to 
        include in the tax levy for the ensuing year a tax in addition 
        to all other taxes sufficient to produce so much of the sums so 
        certified as said authorities shall approve, and such teachers 
        retirement fund association shall not be subject after the 
        conversion to any limitation on payments to any beneficiary from 
        public funds or on taxes to be levied to carry out the plan of 
        such association to which it was not subject before the 
        conversion. 
           Sec. 5.  [PUBLIC PENSION COVERAGE EXCLUSION FOR CERTAIN 
        TRADES PERSONNEL.] 
           Subdivision 1.  [EXCLUSION ELECTION.] (a) An electrical 
        worker, plumber, carpenter, or an associated trades person who 
        is employed by independent school district No. 625, St. Paul, or 
        the city of St. Paul, on the effective date of this section and 
        who has pension coverage by the electrical workers 110 pension 
        plan, the united association plumbers local 34 pension plan, or 
        the carpenters local 87 pension plan under a collective 
        bargaining agreement may elect to be excluded from pension 
        coverage by the public employees retirement association. 
           (b) The exclusion election under this section must be made 
        in writing on a form prescribed by the executive director of the 
        public employees retirement association and must be filed with 
        the executive director.  The exclusion election is irrevocable.  
        Authority to make the coverage exclusion expires on January 1, 
        2001. 
           Subd. 2.  [ELIGIBILITY FOR MEMBER CONTRIBUTION REFUND.] A 
        person who has less than three years of allowable service in the 
        public employees retirement association and who elects the 
        pension coverage exclusion under subdivision 1 is entitled to 
        immediately apply for a refund under Minnesota Statutes, section 
        353.34, subdivisions 1 and 2, following the effective date of 
        the exclusion election. 
           Subd. 3.  [DEFERRED ANNUITY ELIGIBILITY.] In lieu of the 
        refund under subdivision 2, a person who elects the pension 
        coverage exclusion under subdivision 1 is entitled to a deferred 
        retirement annuity under Minnesota Statutes, sections 353.34, 
        subdivision 3, and 353.71, subdivision 2, based on any length of 
        allowable service credit under Minnesota Statutes, section 
        353.01, subdivision 16, to the credit of the person as of the 
        date of the coverage exclusion election. 
           Sec. 6.  [PERA GENERAL AND PERA P&F; PRIOR SERVICE CREDIT 
        PURCHASE.] 
           Subdivision 1.  [ELIGIBILITY.] (a) Except as restricted 
        under subdivision 4, an eligible person described in paragraph 
        (b) is entitled to purchase allowable service credit for the 
        period or periods specified in paragraph (d) in the public 
        employees retirement association general plan.  Except as 
        restricted under subdivision 4, an eligible person described in 
        paragraph (c) is entitled to purchase allowable service credit 
        for the period or periods specified in paragraph (d) in the 
        public employees retirement association police and fire plan. 
           (b) An eligible person is a person who: 
           (1) is a full-time salaried employee or permanent part-time 
        salaried employee of the Spring Lake Park Fire Department, 
        Incorporated; 
           (2) became a member of the public employees retirement 
        association general plan due to that employment on June 1, 1999; 
        and 
           (3) was employed by the Spring Lake Park Fire Department, 
        Incorporated, during all or part of the period from January 1, 
        1996, to June 1, 1999. 
           (c) An eligible person is a person who meets requirements 
        specified in paragraph (b), clauses (1) and (3), and who became 
        a member of the public employees retirement association police 
        and fire plan or the public employees retirement association 
        general plan, whichever applies, due to applicable employment 
        with the Spring Lake Park Fire Department, Incorporated, on June 
        1, 1999. 
           (d) The period or periods eligible for service credit 
        purchase in the public employees retirement association general 
        plan or public employees retirement association police and fire 
        plan, as applicable, is the period or periods from January 1, 
        1996, to June 1, 1999, during which an eligible individual 
        described in paragraph (b) or (c), as applicable, provided 
        service to the Spring Lake Park Fire Department, Incorporated, 
        which would have been eligible service for coverage by the 
        applicable public employees retirement association plan if that 
        service had been provided on or after June 1, 1999, rather than 
        before. 
           Subd. 2.  [PAYMENT REQUIREMENTS.] Minnesota Statutes, 
        section 356.55, applies to service credit purchases authorized 
        under this section. 
           Subd. 3.  [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An 
        eligible person described in subdivision 1, paragraph (b) or 
        (c), must provide any documentation related to eligibility to 
        make this service credit purchase required by the executive 
        director of the public employees retirement association. 
           (b) Allowable service credit for the purchase period or 
        periods must be granted in the applicable public employees 
        retirement association plan on behalf of the eligible person 
        upon receipt of the prior service credit purchase payment amount.
           Subd. 4.  [RESTRICTIONS.] (a) An eligible person as 
        specified in subdivision 1, paragraph (c), is not authorized to 
        purchase service credit in the public employees retirement 
        association police and fire plan under this section if the 
        eligible person, or the eligible person and the Spring Lake Park 
        Fire Department, Incorporated, made contributions on that 
        person's behalf to the social security old age insurance program 
        during all or part of the period from January 1, 1996, to June 
        1, 1999, and coverage under that program for the applicable 
        period remains in effect. 
           (b) If paragraph (a) applies to the eligible person, that 
        eligible person may purchase service credit under this section 
        in the public employees retirement association general plan. 
           (c) If contributions are made by an eligible person 
        specified in paragraph (a) or by that eligible person and the 
        Spring Lake Park Fire Department, Incorporated, or a successor 
        organization, to the social security old age insurance program 
        after June 1, 1999, due to employment for which coverage in the 
        public employees retirement association police and fire plan 
        commenced on June 1, 1999, coverage by the public employees 
        retirement association police and fire plan terminates and 
        coverage by the public employees retirement association general 
        plan commences, if the employment otherwise meets requirements 
        in law for that coverage.  If public employees retirement 
        association police and fire plan contributions have been 
        received on or after June 1, 1999, for any periods where 
        contributions were also made to the social security old age 
        insurance program as specified in this paragraph, the 
        contributions to the public employees retirement association 
        police and fire plan for the applicable period or periods on or 
        after June 1, 1999, must be treated as contributions made in 
        error under Minnesota Statutes, section 353.27, subdivision 7a. 
           Sec. 7. [EFFECTIVE DATE.] 
           (a) Sections 2 and 3 are effective on July 1, 2000. 
           (b) Section 6 is effective on the day following final 
        enactment. 
           (c) Sections 1, 4, and 5 are effective for electrical 
        workers, plumbers, and associated trades personnel employed by 
        independent school district No. 625, St. Paul, on the day 
        following approval by majority vote of the board of independent 
        school district No. 625, St. Paul, and compliance with Minnesota 
        Statutes, section 645.021. 
           (d) Sections 1, 4, and 5 are effective for electrical 
        workers, plumbers, and associated trades personnel employed by 
        the city of St. Paul on the day following approval by majority 
        vote of the St. Paul city council and compliance with Minnesota 
        Statutes, section 645.021. 

                                   ARTICLE 8
                             PENSION COVERAGE UPON
                            EMPLOYMENT PRIVATIZATION
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        353F.02, subdivision 5, is amended to read: 
           Subd. 5.  [OTHER PUBLIC EMPLOYING UNIT.] "Other public 
        employing unit" means: 
           (1) Metro II, a joint powers organization formed under 
        section 471.59; and 
           (2) the St. Paul civic center authority. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective on the first day of the month next 
        following certification by the executive director of the public 
        employees retirement association that the actuarial accrued 
        liability of the special benefit coverage proposed for extension 
        to the privatized St. Paul civic center authority employees 
        under this article does not exceed the actuarial gain otherwise 
        to be accrued by the public employees retirement association, as 
        calculated by the consulting actuary retained by the legislative 
        commission on pensions and retirement.  The cost of the 
        actuarial calculations must be borne by the St. Paul civic 
        center authority. 

                                   ARTICLE 9
               FORMER LOCAL POLICE AND FIRE CONSOLIDATION ACCOUNT
                         MODIFICATIONS AND CORRECTIONS
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        423A.02, subdivision 1b, is amended to read: 
           Subd. 1b.  [ADDITIONAL AMORTIZATION STATE AID.] (a) 
        Annually, on October 1, the commissioner of revenue shall 
        allocate the additional amortization state aid transferred under 
        section 69.021, subdivision 11, to: 
           (1) all police or salaried firefighter relief associations 
        governed by and in full compliance with the requirements of 
        section 69.77, that had an unfunded actuarial accrued liability 
        in the actuarial valuation prepared under sections 356.215 and 
        356.216 as of the preceding December 31; 
           (2) all local police or salaried firefighter consolidation 
        accounts governed by chapter 353A that are certified by the 
        executive director of the public employees retirement 
        association as having for the current fiscal year an additional 
        municipal contribution amount under section 353A.09, subdivision 
        5, paragraph (b), and that have implemented section 353A.083, 
        subdivision 1, if the effective date of the consolidation 
        preceded May 24, 1993, and that have implemented section 
        353A.083, subdivision 2, if the effective date of the 
        consolidation preceded June 1, 1995; and 
           (3) the public employees police and fire fund on behalf of 
        municipalities that received amortization aid in 1999 and are 
        required to make an additional municipal contribution under 
        section 353.665, subdivision 8, for the duration of the required 
        additional contribution. 
           (b) The commissioner shall allocate the state aid on the 
        basis of the proportional share of the relief association or 
        consolidation account of the total unfunded actuarial accrued 
        liability of all recipient relief associations and consolidation 
        accounts as of December 31, 1993, for relief associations, and 
        as of June 30, 1994, for consolidation accounts. 
           (c) Beginning October 1, 2000, and annually thereafter, the 
        commissioner shall allocate the state aid, including any state 
        aid in excess of the limitation in subdivision 4, on the 
        following basis of: 
           (1) 64.5 percent to the public employees police and fire 
        fund or local consolidation account, whichever applies, on 
        behalf of municipalities to which section 353.665, subdivision 
        8, paragraph (b), or 353A.09, subdivision 5, paragraph (b), 
        apply for distribution in accordance with paragraph (b) and 
        subject to the limitation in subdivision 4,; 
           (2) 34.2 percent to the city of Minneapolis to fund any 
        unfunded actuarial accrued liability in the actuarial valuation 
        prepared under sections 356.215 and 356.216 as of the preceding 
        December 31 for the Minneapolis police relief association or the 
        Minneapolis fire department relief association,; and 
           (3) 1.3 percent to the city of Virginia to fund any 
        unfunded actuarial accrued liability in the actuarial valuation 
        prepared under sections 356.215 and 356.216 as of the preceding 
        December 31 for the Virginia fire department relief association. 
           In the event that If there is no unfunded actuarial accrued 
        liability in both the Minneapolis police relief association and 
        the Minneapolis fire department relief association as disclosed 
        in the most recent actuarial valuations for the relief 
        associations prepared under sections 356.215 and 356.216, the 
        commissioner shall allocate that 34.2 percent of the aid as 
        follows:  49 percent to the Minneapolis teachers retirement fund 
        association, provided that, 21 percent to the St. Paul teachers 
        retirement fund association, and 30 percent as additional 
        funding to support minimum fire state aid for volunteer 
        firefighter relief associations.  If there is no unfunded 
        actuarial accrued liability in the Virginia fire department 
        relief association as disclosed in the most recent actuarial 
        valuation for the relief association prepared under sections 
        356.215 and 356.216, the commissioner shall allocate that 1.3 
        percent of the aid as follows:  49 percent to the Minneapolis 
        teachers retirement fund association, 21 percent to the St. Paul 
        teachers retirement fund association, and 30 percent as 
        additional funding to support minimum fire state aid for 
        volunteer firefighter relief associations.  The allocation must 
        be made by the commissioner at the same time and under the same 
        procedures as specified in subdivision 3.  With respect to the 
        Minneapolis teachers retirement fund association or the St. Paul 
        teachers retirement fund association, annually, beginning on 
        July 1, 2005, if a the applicable teacher's association 
        five-year average time-weighted rate of investment return does 
        not equal or exceed the performance of a composite portfolio 
        assumed passively managed (indexed) invested ten percent in cash 
        equivalents, 60 percent in bonds and similar debt securities, 
        and 30 percent in domestic stock calculated using the formula 
        under section 11A.04, clause (11), the aid allocation to that 
        retirement fund under this section ceases until the five-year 
        annual rate of investment return equals or exceeds the 
        performance of a that composite portfolio., 21 percent to the 
        St. Paul teachers retirement fund association, provided that, 
        annually, beginning on July 1, 2005, if a teacher's association 
        five-year average time-weighted rate of investment return does 
        not equal or exceed the performance of a composite portfolio 
        assumed passively managed (indexed) invested ten percent in cash 
        equivalents, 60 percent bonds and similar debt securities, and 
        30 percent in domestic stock calculated using the formula under 
        section 11A.04, clause (11), the aid under this section ceases 
        until the five-year annual rate of return equals or exceeds the 
        performance of a composite portfolio, and 30 percent as 
        additional funding to support minimum fire state aid for 
        volunteer firefighter relief associations, with the allocation 
        made at the same time and under the same procedures in 
        subdivision 3.  In the event there is no actuarial accrued 
        unfunded liability in the Virginia fire department relief 
        association, the commissioner shall allocate that 1.3 percent of 
        the aid as follows:  49 percent to the Minneapolis teachers 
        retirement fund association, provided that, annually, beginning 
        on July 1, 2005, if a teacher's association five-year average 
        time-weighted rate of investment return does not equal or exceed 
        the performance of a composite portfolio assumed passively 
        managed (indexed) invested ten percent in cash equivalents, 60 
        percent bonds and similar debt securities, and 30 percent in 
        domestic stock calculated using the formula under section 
        11A.04, clause (11), the aid under this section ceases until the 
        five-year annual rate of return equals or exceeds the 
        performance of a composite portfolio, 21 percent to the St. Paul 
        teachers retirement fund association, provided that, annually, 
        beginning on July 1, 2005, if a teacher's association five-year 
        average time-weighted rate of investment return does not equal 
        or exceed the performance of a composite portfolio assumed 
        passively managed (indexed) invested ten percent in cash 
        equivalents, 60 percent bonds and similar debt securities, and 
        30 percent in domestic stock calculated using the formula under 
        section 11A.04, clause (11), the aid under this section ceases 
        until the five-year annual rate of return equals or exceeds the 
        performance of a composite portfolio, and 30 percent as 
        additional funding to support minimum fire state aid for 
        volunteer firefighter relief associations, with the allocation 
        made at the same time and under the same procedures in 
        subdivision 3.  
           (d) Additional amortization state aid payable to the public 
        employees retirement association on behalf of a municipality 
        must be credited by the executive director of the public 
        employees retirement association against any additional 
        municipal contribution to which the applicable municipality is 
        obligated to make under section 353A.09, subdivision 5, or under 
        section 353.665, subdivision 8. 
           (e) The amounts required under this subdivision are 
        annually appropriated to the commissioner of revenue. 
           Sec. 2.  Minnesota Statutes 1999 Supplement, section 
        423A.02, subdivision 4, is amended to read: 
           Subd. 4.  [LIMIT ON CERTAIN TOTAL AID AMOUNTS.] (a) The 
        total of amortization aid, supplemental amortization aid, and 
        additional amortization aid under this section payable to the 
        executive director of the public employees retirement 
        association on behalf of a municipality to which section 
        353.665, subdivision 8, paragraph (b), applies, may not exceed 
        the amount of the additional municipal contribution payable by 
        an individual municipality under section 353.665, subdivision 8, 
        paragraph (b). 
           (b) Any aid amount in excess of the limit under this 
        subdivision for an individual municipality must be redistributed 
        to the other municipalities to which section 353.665, 
        subdivision 8, paragraph (b), applies.  The excess aid must be 
        distributed in proportion to each municipality's additional 
        municipal contribution under section 353.665, subdivision 8, 
        paragraph (b). 
           (c) When the total aid for each municipality under this 
        section equals the limit under paragraph (a), any aid in excess 
        of the limit must be redistributed under subdivisions 1, 1a, and 
        subdivision 1b. 
           Sec. 3.  Minnesota Statutes 1999 Supplement, section 
        423A.02, subdivision 5, is amended to read: 
           Subd. 5.  [TERMINATION OF STATE AID PROGRAMS.] The 
        amortization state aid, supplemental amortization state aid, and 
        additional amortization state aid programs terminate as of the 
        December 31, next following the date of the actuarial valuation 
        when the assets of the Minneapolis teachers retirement fund 
        association equal the actuarial accrued liability of that plan 
        and when the assets of the St. Paul teachers retirement fund 
        association equal the actuarial accrued liability of that 
        plan or December 31, 2009, whichever is later. 
           Sec. 4.  [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; ONE-TIME 
        SPECIAL OPTIONAL ANNUITY ELECTION FOR CERTAIN FORMER 
        CONSOLIDATION ACCOUNT RETIREES.] 
           Subdivision 1.  [ELIGIBILITY.] An individual who was a 
        deferred annuitant, a service pension annuitant, or who was 
        receiving disability benefits from the relief association on the 
        effective date of the consolidation of the applicable local 
        police or paid firefighter relief association, and who chose 
        annual adjustments applicable to the public employees retirement 
        association police and fire plan in elections provided under 
        Minnesota Statutes, section 353.615, subdivisions 5 and 6 or 
        353A.08, subdivision 1 or 2, may elect an optional annuity form 
        under subdivision 2 to provide additional payments to a 
        surviving spouse. 
           Subd. 2.  [OPTIONAL ANNUITIES.] The optional annuity form 
        may be either a 15 percent or a 25 percent joint and survivor 
        annuity and is without reinstatement in the event of the 
        surviving spouse predeceasing the member.  The optional annuity 
        forms must be actuarially equivalent to the service pension 
        currently paid to the retired consolidated member without 
        consideration of the value of survivor benefits payable under 
        Minnesota Statutes, section 353B.11, and must be based upon the 
        age of the member and the age of the spouse of the member as of 
        October 1, 2000.  
           Subd. 3.  [ADDITIONAL SURVIVOR BENEFIT.] An optional 
        annuity under subdivision 2 is payable in addition to any 
        applicable survivor benefit payable under Minnesota Statutes, 
        section 353.11.  An optional annuity under subdivision 2 when 
        combined with applicable survivor benefits under Minnesota 
        Statutes, section 353.11, must not exceed the benefit payable to 
        the deceased service or disability pensioner immediately prior 
        to death.  
           Subd. 4.  [ELECTION.] (a) To be valid, an optional annuity 
        form under subdivision 2 must be elected in writing on a form 
        prescribed by the executive director of the public employees 
        retirement association and signed by the eligible service 
        pensioner or disabilitant before October 1, 2000.  Once 
        selected, the optional annuity is irrevocable. 
           (b) The executive director of the public employees 
        retirement association shall provide counseling to members 
        regarding the election of an optional annuity form under this 
        section, including the impact on current benefit levels payable 
        if an option annuity form is elected. 
           Sec. 5.  [EFFECTIVE DATE.] 
           Sections 1 to 4 are effective on the day following final 
        enactment. 

                                   ARTICLE 10
                       PERA LOCAL CORRECTIONAL RETIREMENT
                               PLAN MODIFICATIONS
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        353E.02, is amended to read: 
           353E.02 [CORRECTIONAL SERVICE EMPLOYEES RETIREMENT PLAN 
        MEMBERSHIP.] 
           Subdivision 1.  [RETIREMENT COVERAGE.] Local government 
        correctional service employees are members of the local 
        government correctional service retirement plan established by 
        this chapter. 
           Subd. 2.  [LOCAL GOVERNMENT CORRECTIONAL SERVICE 
        EMPLOYEE.] (a) A local government correctional service employee, 
        for purposes of subdivision 1, is a person who whom the employer 
        certifies: 
           (1) is employed in a county-administered jail or 
        correctional facility or in a regional correctional facility 
        administered by multiple counties county correctional 
        institution as a correctional guard or officer, a joint 
        jailer/dispatcher, or as a supervisor of correctional guards or 
        officers or of joint jailers/dispatchers; 
           (2) spends at least 95 percent of the employee's working 
        time in direct contact with persons confined in the jail or 
        facility, as certified in writing, in advance, by the employer 
        to the executive director of the association is directly 
        responsible for the direct security, custody, and control of the 
        county correctional institution and its inmates; 
           (3) is expected to respond to incidents within the county 
        correctional institution as part of the person's regular 
        employment duties and is trained to do so; and 
           (3) (4) is a "public employee" as defined in section 
        353.01, but is not a member of the public employees police and 
        fire fund. 
           (b) The certification required under paragraph (a) must be 
        made in writing on a form prescribed by the executive director 
        of the public employees retirement association. 
           (c) A person who was a member of the local government 
        correctional service retirement plan on the day before the 
        effective date of this section remains a member of the plan 
        after the effective date of this section for the duration of the 
        person's employment in that county correctional institution 
        position, even if the person's subsequent service in this 
        position does not meet the requirements set forth in paragraph 
        (a). 
           Subd. 3.  [COUNTY CORRECTIONAL INSTITUTION.] A county 
        correctional institution is: 
           (1) a jail administered by a county; 
           (2) a correctional facility administered by a county; or 
           (3) a regional correctional facility administered by or on 
        behalf of multiple counties. 
           Sec. 2.  Minnesota Statutes 1999 Supplement, section 
        353E.03, is amended to read: 
           353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.] 
           Subdivision 1.  [MEMBER CONTRIBUTIONS.] A local government 
        correctional service employee shall make an employee 
        contribution in an amount equal to 5.83 6.01 percent of salary. 
           Subd. 2.  [EMPLOYER CONTRIBUTIONS.] The employer shall 
        contribute for a local government correctional service employee 
        an amount equal to 8.75 9.02 percent of salary. 
           Sec. 3.  [EFFECTIVE DATE.] 
           Section 1 is effective on the day following final enactment.
        Section 2 is effective on the first day of the first full pay 
        period beginning after January 1, 2002. 

                                   ARTICLE 11
                             TEACHER RETIREMENT AND
                                RELATED CHANGES
           Section 1.  Minnesota Statutes 1998, section 122A.46, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TEACHERS DEFINED.] As used in this 
        section, the term "teachers" shall have the meaning given it in 
        section 122A.15, subdivision 1.  The term "teachers" also 
        includes any teacher in the classifications included in the 
        professional state residential instructional unit, under section 
        179A.10, subdivision 2, clause (16). 
           Sec. 2.  Minnesota Statutes 1998, section 122A.46, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [APPOINTING AUTHORITY.] For purposes of teachers 
        included in the professional state residential instructional 
        unit, the term "school board" includes the appointing authority 
        as defined in section 43A.02, subdivision 5. 
           Sec. 3.  Minnesota Statutes 1999 Supplement, section 
        354.536, subdivision 1, is amended to read: 
           Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
        teacher who has at least three years of allowable service credit 
        with the teachers retirement association is entitled to purchase 
        up to ten years of allowable and formula service credit for 
        nonprofit community-based corporation, private, or parochial 
        school teaching service by making payment under section 356.55, 
        provided that the teacher is not entitled to receive a current 
        or deferred age and service retirement annuity or disability 
        benefit from the applicable employer-sponsored pension plan and 
        has not purchased service credit from the applicable defined 
        benefit employer-sponsored pension plan for that service. 
           Sec. 4.  [354A.051] [MTRFA COVERAGE FOR UNION BUSINESS 
        AGENTS.] 
           Subdivision 1.  [AUTHORIZATION.] A member of the 
        Minneapolis teachers retirement fund association on a leave of 
        absence from a teaching position with special school district 
        No. 1, and who is employed by an employee organization 
        representing Minneapolis teachers retirement fund association 
        active members, may elect under subdivision 2 to be a member of 
        the coordinated program of the association for service with that 
        employee organization, subject to the limitations specified in 
        subdivisions 3, 4, and 5. 
           Subd. 2.  [ELECTION.] Except as indicated in subdivision 3, 
        a person described in subdivision 1 must be covered by the 
        Minneapolis teachers retirement fund association coordinated 
        program for employment with the employer organization if the 
        person files a written election to be covered with the executive 
        director of the teachers retirement fund association within 90 
        days of first being employed by the employee organization, or 
        within 90 days of the start of the first leave of absence due to 
        service as an employee organization business agent, whichever is 
        later. 
           Subd. 3.  [WAIVER OF LEAVE COVERAGE.] Coverage under this 
        section does not apply to any leave period or portion of a leave 
        period for which a person has received service credit or is 
        eligible to receive service credit for the leave period under 
        any leave of absence provision in chapter 354A, any other 
        applicable law, or bylaws or articles of incorporation of the 
        association.  The person may waive eligibility to receive 
        service credit under a leave of absence provision and be covered 
        by this section for the applicable period by filing a waiver 
        with the executive director within 90 days of the start of the 
        leave. 
           Subd. 4.  [COVERED SALARY LIMITATION.] (a) The covered 
        salary for an employee of the employee organization covered by 
        the coordinated program of the Minneapolis teachers retirement 
        fund association under this section is limited to the lesser of: 
           (1) the person's actual salary from the employee 
        organization as defined in section 354A.011, subdivision 24; or 
           (2) 75 percent of the salary of the governor as set under 
        section 15A.082. 
           (b) The limited covered salary determined under this 
        paragraph must be used in determining member, employer, and 
        employer additional contributions under section 354A.12, and in 
        determining annuities and other benefits under sections 354A.30 
        to 354A.41 and chapter 356. 
           Subd. 5.  [ANNUITY RECEIPT REQUIREMENTS.] A retirement 
        annuity is only payable from the coordinated program of the 
        Minneapolis teachers retirement fund association to a person 
        described in subdivision 1 if the person has met all applicable 
        requirements, including the termination by the person from 
        employment by the employee organization and by the school 
        district.  The reemployed annuitant earnings limitation in 
        section 354A.31, subdivision 3, applies if the person retires 
        and is subsequently reemployed while an annuitant by the 
        employee organization or by any other entity employing persons 
        who are members of the applicable teachers retirement fund 
        association by virtue of that employment. 
           Subd. 6.  [CONTRIBUTION REQUIREMENTS.] The member, 
        employer, and employer additional contributions required by 
        section 354A.12 are the obligation of the person who elects 
        coverage by the coordinated program of the Minneapolis teachers 
        retirement fund association, but the employee organization may 
        pay the employer and employer additional contributions.  
        Contributions made by the person must be made by salary 
        deduction.  Contributions made by the employee organization must 
        be made as provided in section 354A.12. 
           Subd. 7.  [BOARD INELIGIBILITY.] A person employed by an 
        employee organization who retains active membership in the 
        teachers retirement fund association under this section is not 
        eligible for election to the board of trustees of the teachers 
        retirement fund association. 
           Sec. 5.  Minnesota Statutes 1999 Supplement, section 
        354A.101, subdivision 1, is amended to read: 
           Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
        teacher who has at least three years of allowable service credit 
        with the teachers retirement fund association is entitled to 
        purchase up to ten years of allowable service credit 
        for nonprofit community-based corporation, private, or parochial 
        school teaching service by making payment under section 356.55, 
        provided that the teacher is not entitled to receive a current 
        or deferred age and service retirement annuity or disability 
        benefit from the applicable employer-sponsored pension plan and 
        has not purchased service credit from the applicable defined 
        benefit employer-sponsored pension plan for that service. 
           Sec. 6.  [ELECTION OF COVERAGE BY EMPLOYEE OF EMPLOYEE 
        ORGANIZATION REPRESENTING MINNEAPOLIS TEACHERS RETIREMENT FUND 
        ASSOCIATION ACTIVE MEMBERS.] 
           Subdivision 1.  [ELIGIBILITY ELECTION.] Notwithstanding the 
        election date requirements in section 354A.051, subdivision 2, a 
        person who is currently employed as a business agent by an 
        employee organization representing Minneapolis teachers 
        retirement fund association active members and who has been on a 
        mobility leave or leaves from special school district No. 1 
        since March 23, 1998, may make a written election to be covered 
        under section 354A.051.  To be valid, that written election must 
        be on a form specified by the executive director of the 
        Minneapolis teachers retirement fund association and must be 
        filed with the executive director within 90 days following the 
        effective date of this section. 
           Subd. 2.  [PAYMENT REQUIREMENTS.] If a valid election is 
        made under subdivision 1, an eligible individual under 
        subdivision 1 is required to pay, in a lump sum within 90 days 
        of the effective date of this section, any additional employee, 
        employer, and employer additional contributions based on the 
        eligible individual's salary and employment with the employee 
        organization, as required by the election, compared to amounts 
        previously paid or payable.  These amounts are in addition to 
        any amounts previously payable.  The additional contribution 
        requirements are to be computed from March 23, 1998, to the date 
        payroll deductions are first made on the high contribution 
        requirements.  The lump sum payment under this subdivision must 
        include 8.5 percent annual interest.  The amounts required under 
        this subdivision are the obligation of the eligible individual, 
        but the employee organization may pay the additional employer 
        and employer additional amounts with applicable interest. 
           Subd. 3.  [SALARY CREDIT GRANT.] The additional salary 
        credit is to be granted to the account of the eligible 
        individual upon payment of amounts required under this section. 
           Sec. 7.  [SPECIAL PART-TIME TEACHER PROGRAM AUTHORITY; 
        CERTAIN TEACHERS.] 
           (a) Notwithstanding the requirement in Minnesota Statutes, 
        section 354.66, subdivision 2, that part-time teacher program 
        agreements must be executed before October 1 of the school year 
        for which the teacher requests to make retirement contributions 
        described in the part-time teacher program, an eligible teacher 
        under paragraph (b) is authorized to participate in the 
        part-time teacher program under Minnesota Statutes, section 
        354.66, during the 1999-2000 school year. 
           (b) An eligible teacher is a teacher: 
           (1) employed by school district No. 11 (Anoka-Hennepin); 
           (2) whose part-time teaching agreement under Minnesota 
        Statutes, section 354.66, was executed after October 1, 1999, 
        but before the end of the 1999-2000 school year; and 
           (3) was born on October 16, 1947, or October 19, 1957. 
           (c) If full-time equivalent employee contributions were not 
        made for the full period covered by the part-time teaching 
        agreement indicated under paragraph (b), any omission or 
        deficiency in employee contributions must be paid by the 
        employee on or before the due date of any payment required under 
        Minnesota Statutes, section 354.66, subdivision 4. 
           (d) Notwithstanding Minnesota Statutes, section 354.66, 
        subdivision 2, one-quarter of the fine required under that 
        subdivision is waived if the part-time teaching agreement is 
        filed with the teachers retirement association by May 30, 2000.  
        If a part-time teaching agreement referred to under paragraph 
        (b) is not filed with the teachers retirement association before 
        July 1, 2000, the authority provided by this section is voided. 
           Sec. 8.  [EFFECTIVE DATE.] 
           Sections 1 to 7 are effective on the day following final 
        enactment. 

                                   ARTICLE 12
                             MNSCU PENSION COVERAGE
                              AND RELATED CHANGES
           Section 1.  Minnesota Statutes 1998, section 136F.43, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITION.] As used in this section, 
        "teacher" means a person on the instructional or administrative 
        staff of the state colleges and universities who is a member of 
        the teachers retirement association under chapter 354, who is a 
        member of a teachers retirement fund association under chapter 
        354A, or who is covered by the unclassified employees plan under 
        chapter 352D or individual retirement account plan under chapter 
        354B.  It shall not include a chancellor, deputy chancellor, or 
        vice-chancellor. 
           Sec. 2.  Minnesota Statutes 1998, section 136F.43, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GRANTING AUTHORITY.] The board may grant an 
        extended leave of absence without salary to a full-time teacher 
        who has been employed by the board for at least five years and 
        has at least ten years of allowable service as defined in 
        section 354.05, subdivision 13 one or a combination of the 
        retirement plans specified in subdivision 1.  The maximum 
        duration of an extended leave of absence pursuant to this 
        section shall be determined by mutual agreement of the board and 
        the teacher at the time the leave is granted and shall be at 
        least three but no more than five years.  An extended leave of 
        absence under this section shall be taken by mutual consent of 
        the board and the teacher.  No teacher may receive more than one 
        leave of absence under this section.  
           Sec. 3.  Minnesota Statutes 1998, section 136F.43, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ALTERNATE LEAVE.] The board may grant a teacher 
        a leave of absence which is not subject to the provisions of 
        this section and either section 354.094 or section 354A.091. 
           Sec. 4.  Minnesota Statutes 1998, section 136F.45, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [SUBSEQUENT VENDOR CONTRACTS.] (a) The board may 
        limit the number of vendors under subdivision 1. 
           (b) In addition to any other tax-sheltered annuity program 
        investment options, the board may offer as an investment option 
        the Minnesota supplemental investment fund administered by the 
        state board of investment under section 11A.17. 
           (c) For the tax-sheltered annuity program vendor contracts 
        to be executed for the period beginning after July 1, 2000, the 
        board shall actively solicit participation of and shall include 
        as vendors lower expense and "no-load" mutual funds or 
        equivalent investment products as those terms are defined by the 
        federal securities and exchange commission.  To the extent 
        possible, in addition to a range of insurance annuity contract 
        providers and other mutual fund provider arrangements, the board 
        must assure that no less than five insurance annuity providers 
        and no less than one nor more than three lower expense and 
        "no-load" mutual funds or equivalent investment products will be 
        made available for direct-access by employee participants.  To 
        the extent that offering a lower expense "no-load" product 
        increases the total necessary and reasonable expenses of the 
        program and if the board is unable to negotiate a rebate of fees 
        from the mutual fund or equivalent investment product providers, 
        the board may charge the participants utilizing the lower 
        expense "no-load" mutual fund products a fee to cover those 
        expenses.  The participant fee may not exceed one percent of the 
        participant's annual contributions or $20 per participant per 
        year, whichever is greater.  Any excess fee revenue generated 
        under this subdivision must be reimbursed to participant 
        accounts in the manner provided in subdivision 3a. 
           Sec. 5.  [354.539] [USE OF COLLEGE SUPPLEMENTAL RETIREMENT 
        FUNDS TO PURCHASE SERVICE CREDIT.] 
           (a) Unless prohibited by or subject to a penalty under 
        federal law, a teacher who is a participant in the college 
        supplemental retirement plan established under chapter 354C may 
        utilize the teacher's supplemental plan account to purchase 
        service credit under sections 354.53, 354.533, 354.534, 354.535, 
        354.536, 354.537, and 354.538. 
           (b) At the request of a member, if determined by the 
        executive director to be eligible to purchase service credit, 
        the executive director shall notify the board of the Minnesota 
        state colleges and universities system of the cost of the 
        purchase and shall request the transfer of funds from the 
        member's college supplemental retirement account to the teachers 
        retirement association.  Upon receipt of the full prior service 
        credit purchase payment amount, the teachers retirement 
        association shall grant the requested allowable and formula 
        service credit. 
           Sec. 6.  Minnesota Statutes 1998, section 354A.091, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RETIREMENT CONTRIBUTIONS.] Notwithstanding 
        any provision to the contrary of this chapter or the articles of 
        incorporation or bylaws of an association relating to the salary 
        figure to be used for the determination of contributions or the 
        accrual of service credit an elementary, secondary, or technical 
        college teacher in the public schools of a city of the first 
        class who is granted an extended leave of absence pursuant to 
        section 122A.46, or a teacher who is granted an extended leave 
        of absence under section 136F.43, may pay employee contributions 
        to the applicable association and shall be entitled to receive 
        allowable service credit in that association for each year of 
        leave, provided the member and the employing board make the 
        required employer contributions, in any proportion they may 
        agree upon, to that association during the period of leave which 
        shall not exceed five years.  The state shall not make an 
        employer contribution on behalf of the teacher.  The employee 
        and employer contributions shall be based upon the rates of 
        contribution prescribed by section 354A.12 as applied to a 
        salary figure equal to the teacher's actual covered salary for 
        the plan year immediately preceding the leave.  Payment of the 
        employee and employer contributions authorized pursuant to this 
        section shall be made on or before June 30 of the fiscal year 
        for which service credit is to be received.  No allowable 
        service with respect to a year of extended leave of absence 
        shall be credited to a teacher until payment of the required 
        employee and employer contributions has been received by the 
        association. 
           Sec. 7.  Minnesota Statutes 1998, section 354A.091, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MEMBERSHIP RETENTION.] A teacher on extended 
        leave pursuant to under either section 122A.46 or 136F.43 whose 
        employee and employer contributions are made to the applicable 
        teachers retirement fund association pursuant to subdivision 1 
        shall retain membership in the association for each year during 
        which the contributions are made, under the same terms and 
        conditions as if the teacher had continued to teach in the 
        district. 
           Sec. 8.  Minnesota Statutes 1998, section 354A.091, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EFFECT OF NONPAYMENT.] A teacher on extended 
        leave pursuant to under either section 122A.46 or 136F.43 who 
        does not make employee contributions or whose employer 
        contribution is not made to the applicable teachers retirement 
        fund association in any year shall be deemed to have ceased to 
        be an active member of the association and to have ceased to 
        render teaching services beginning in that year for purposes of 
        this chapter and the articles of incorporation and bylaws of the 
        association, and may not pay employee or employer contributions 
        into the fund in any subsequent year of the leave.  Nonpayment 
        of contributions into the fund shall not affect the rights or 
        obligations of the teacher or the employing school district 
        under section 122A.46 or the Minnesota state colleges and 
        universities system under section 136F.43. 
           Sec. 9.  Minnesota Statutes 1998, section 354A.091, 
        subdivision 5, is amended to read: 
           Subd. 5.  [APPLICABILITY.] The provisions of this section 
        shall not apply to a teacher who is discharged pursuant to 
        section 122A.41 while the teacher is on an extended leave of 
        absence pursuant to section 122A.46.  The provisions of this 
        section also do not apply to a teacher who is discharged for 
        cause while the teacher is on an extended leave of absence under 
        section 136F.43. 
           Sec. 10.  Minnesota Statutes 1998, section 354A.091, 
        subdivision 6, is amended to read: 
           Subd. 6.  A teacher who makes employee contributions to and 
        receives allowable service credit in the applicable teacher's 
        retirement fund association pursuant to this section may not 
        make employee contributions or receive allowable service credit 
        for the same period of time in any other Minnesota public 
        employee pension plan, except a volunteer firefighters' relief 
        association governed by sections 69.771 to 69.776.  This 
        subdivision shall not be construed to prohibit a member who pays 
        employee contributions and receives allowable service credit in 
        the fund pursuant to this section in any year from being 
        employed as a substitute teacher by any school district during 
        that year.  Notwithstanding the provisions of this chapter or 
        the bylaws of a retirement association, a teacher may not pay 
        retirement contributions or receive allowable service credit in 
        the fund for teaching service rendered for any part of any year 
        for which the teacher pays retirement contributions or receives 
        allowable service credit pursuant to section 354.094 or this 
        section while on an extended leave of absence pursuant to under 
        either section 122A.46 or section 136F.43. 
           Sec. 11.  [354A.106] [USE OF COLLEGE SUPPLEMENTAL 
        RETIREMENT FUNDS TO PURCHASE SERVICE CREDIT.] 
           (a) Unless prohibited by or subject to a penalty under 
        federal law, a teacher who is a participant in the college 
        supplemental retirement plan established under chapter 354C may 
        utilize the teacher's supplemental plan account to purchase 
        service credit under sections 354A.097, 354A.098, 354A.099, 
        354A.101, 354A.102, 354A.103, and 354A.104. 
           (b) At the request of a member, if determined by the 
        executive director of the applicable teachers retirement fund 
        association to be eligible to purchase service credit, the 
        executive director shall notify the board of the Minnesota state 
        colleges and universities system of the cost of the purchase and 
        shall request the transfer of funds from the member's college 
        supplemental retirement account to the applicable teachers 
        retirement fund association.  Upon receipt of the full prior 
        service credit purchase payment amount, the applicable teachers 
        retirement fund association shall grant the requested allowable 
        and formula service credit. 
           Sec. 12.  Minnesota Statutes 1998, section 354B.23, 
        subdivision 5a, is amended to read: 
           Subd. 5a.  [EXCESS CONTRIBUTIONS.] (a) When contributions 
        to the plan exceed limits imposed by federal law or 
        regulation and it is necessary to return contributions to comply 
        with the federal limits, the excess employee contributions must 
        be returned to the employee and to the excess employer in the 
        same proportions as the contributions were made contributions 
        must be reallocated in accordance with section 415 of the 
        federal Internal Revenue Code, as amended, and the applicable 
        federal regulations and revenue rulings. 
           (b) When an employer contribution required under section 
        354B.24 due to a sabbatical leave is made after completion of 
        the leave or an employer contribution is made due to omitted 
        deductions under subdivision 5, and these employer contributions 
        cause or would cause total contributions to the plan to exceed 
        limits imposed by federal law or regulation, the employer must 
        make that portion of the contribution that would exceed the 
        federal limit during the next calendar year. 
           Sec. 13.  Minnesota Statutes 1998, section 354C.12, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [EXCESS CONTRIBUTIONS.] (a) When contributions 
        to the plan exceed limits imposed by federal law or 
        regulation and it is necessary to return contributions to comply 
        with the federal limits, one-half of the excess contributions 
        must be returned to, the excess employee contributions must be 
        returned to the employee and one-half to the excess employer 
        contributions must be reallocated in accordance with section 415 
        of the federal Internal Revenue Code, as amended, and the 
        applicable federal regulations and revenue rulings. 
           (b) When an employer contribution is made due to omitted 
        deductions under subdivision 2, and these employer contributions 
        cause or would cause total contributions to the plan to exceed 
        limits imposed by federal law or regulation, the employer must 
        make that portion of the contribution that would exceed the 
        federal limit during the next calendar year. 
           Sec. 14.  Minnesota Statutes 1998, section 354C.165, is 
        amended to read: 
           354C.165 [PROHIBITION ON LOANS OR PRETERMINATION 
        DISTRIBUTIONS.] 
           (a) Except as provided in paragraph (c), no participant may 
        obtain a loan from the plan or obtain any distribution from the 
        plan at a time before the participant terminates the employment 
        that gave rise to plan coverage. 
           (b) No amounts to the credit of the plan are assignable 
        either in law or in equity, are subject to state estate tax, or 
        are subject to execution, levy, attachment, garnishment, or 
        other legal process, except as provided in section 518.58, 
        518.581, or 518.6111.  
           (c) Unless prohibited by or subject to a penalty under 
        federal law, a teacher who is a participant in the supplemental 
        retirement plan may request, in writing, a transfer of all or a 
        portion of the funds accumulated in the person's supplemental 
        plan account to the teachers retirement association to purchase 
        service credit under sections 354.53, 354.533, 354.534, 354.535, 
        354.536, 354.537, and 354.538 or to the teachers retirement fund 
        association to purchase service credit under sections 354A.097, 
        354A.098, 354A.099, 354A.101, 354A.102, 354A.103, and 354A.104.  
        Upon receipt of a valid request, the board shall execute the 
        transfer.  The transfer must be a fund-to-fund transfer, and in 
        no event shall the participant directly receive any of the funds 
        while still employed by the board.  In no event may the board 
        transfer more than the participant's account balance.  The 
        board, in cooperation with the executive director of the 
        teachers retirement association, shall develop the forms for 
        requesting a transfer and the procedures for executing the 
        requested transfers. 
           Sec. 15.  Minnesota Statutes 1999 Supplement, 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 contribute public funds to a 
        supplemental pension or deferred compensation plan that is 
        established, maintained, and operated in addition to a primary 
        pension program for the benefit of the governmental subdivision 
        employees other than: 
           (1) to a supplemental pension plan that was established, 
        maintained, and operated before May 6, 1971; 
           (2) to a plan that provides solely for group health, 
        hospital, disability, or death benefits; 
           (3) to the individual retirement account plan established 
        by chapter 354B; 
           (4) to a plan that provides solely for severance pay under 
        section 465.72 to a retiring or terminating employee; 
           (5) for employees other than personnel employed by the 
        state university board or the community college board and 
        covered by the board of trustees of the Minnesota state colleges 
        and universities supplemental retirement plan under chapter 
        354C, if provided for in a personnel policy of the public 
        employer or in the collective bargaining agreement between the 
        public employer and the exclusive representative of public 
        employees in an appropriate unit, in an amount matching employee 
        contributions on a dollar for dollar basis, but not to exceed an 
        employer contribution of $2,000 a year per employee; 
           (i) to the state of Minnesota deferred compensation plan 
        under section 352.96; or 
           (ii) in payment of the applicable portion of the premium on 
        a tax-sheltered annuity contract qualified under section 403(b) 
        of the Internal Revenue Code, if purchased from a qualified 
        insurance company, or to a qualified investment entity, as 
        defined in subdivision 1a, and, in either case, if the employing 
        unit has complied with any applicable pension plan provisions of 
        the Internal Revenue Code with respect to the tax-sheltered 
        annuity program during the preceding calendar year; or 
           (6) for personnel employed by the state university board or 
        the community college board and not covered by clause (5), to 
        the supplemental retirement plan under chapter 354C, if provided 
        for in a personnel policy or in the collective bargaining 
        agreement of the public employer with the exclusive 
        representative of the covered employees in an appropriate unit, 
        in an amount matching employee contributions on a dollar for 
        dollar basis, but not to exceed an employer contribution of 
        $2,000 $2,700 a year for each employee. 
           Sec. 16.  Minnesota Statutes 1998, section 356A.01, 
        subdivision 8, is amended to read: 
           Subd. 8.  [COVERED PENSION PLAN.] "Covered pension plan" 
        means a pension plan or fund listed in section 356.20, 
        subdivision 2, or section 356.30, subdivision 3, or a plan 
        established under chapter 353D, 354B, 354C, or 354D. 
           Sec. 17.  Minnesota Statutes 1998, section 356A.02, is 
        amended to read: 
           356A.02 [FIDUCIARY STATUS AND ACTIVITIES.] 
           Subdivision 1.  [FIDUCIARY STATUS.] For purposes of this 
        chapter, the following persons are fiduciaries: 
           (1) any member of the governing board of a covered pension 
        plan; 
           (2) the chief administrative officer of a covered pension 
        plan or of the state board of investment; 
           (3) any member of the state board of investment; and 
           (4) any member of the investment advisory council; and 
           (5) any member of the advisory committee established under 
        section 354B.25. 
           Subd. 2.  [FIDUCIARY ACTIVITY.] The activities of a 
        fiduciary identified in subdivision 1 that must be carried out 
        in accordance with the requirements of section 356A.04 include, 
        but are not limited to: 
           (1) the investment and reinvestment of plan assets; 
           (2) the determination of benefits; 
           (3) the determination of eligibility for membership or 
        benefits; 
           (4) the determination of the amount or duration of 
        benefits; 
           (5) the determination of funding requirements or the 
        amounts of contributions; 
           (6) the maintenance of membership or financial records; and 
           (7) the expenditure of plan assets; and 
           (8) the selection of financial institutions and investment 
        products. 
           Sec. 18.  Minnesota Statutes 1998, section 356A.06, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [DEFINED CONTRIBUTION PLANS; APPLICATION.] (a) 
        To the extent that a plan governed by chapter 352D, 353D, 354B, 
        354C, or 354D permits a participant or beneficiary to select 
        among investment products for the person's account and the 
        participant or beneficiary exercises that investment 
        self-direction, no fiduciary is liable for any loss which may 
        result from the participant's or beneficiary's exercise of that 
        investment self-direction. 
           (b) Subdivisions 1, 2, 6, 8, and 8a do not apply to plans 
        governed by chapter 354B or 354C. 
           Sec. 19.  [VENDOR CONTRACT EXTENSION OPTION.] 
           Notwithstanding Minnesota Statutes, section 136F.45, 
        subdivision 1a, paragraph (c), the board of trustees of the 
        Minnesota state colleges and universities may, with the 
        agreement of the parties involved, extend the vendor contracts 
        in effect immediately before July 1, 2000, with any revisions 
        that are mutually agreeable to the parties, for up to an 
        additional two years duration. 
           Sec. 20.  [EFFECTIVE DATE.] 
           (a) Sections 4, 5, and 11 to 20 are effective on the day 
        following final enactment. 
           (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 
        following final enactment and apply retroactively to a faculty 
        member of the Lake Superior College who was granted an extended 
        leave of absence under article 19, section 4, of the united 
        technical college educators master agreement for the 1999-2000 
        academic year prior to March 20, 2000. 
           (c) Sections 5, 11, and 14, paragraph (c), expire on May 
        16, 2002. 

                                   ARTICLE 13
                         EMPLOYER MATCHING CONTRIBUTION
                         TAX SHELTERED ANNUITY CHANGES
           Section 1.  Minnesota Statutes 1999 Supplement, 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 contribute public funds to a 
        supplemental pension or deferred compensation plan that is 
        established, maintained, and operated in addition to a primary 
        pension program for the benefit of the governmental subdivision 
        employees other than: 
           (1) to a supplemental pension plan that was established, 
        maintained, and operated before May 6, 1971; 
           (2) to a plan that provides solely for group health, 
        hospital, disability, or death benefits; 
           (3) to the individual retirement account plan established 
        by chapter 354B; 
           (4) to a plan that provides solely for severance pay under 
        section 465.72 to a retiring or terminating employee; 
           (5) for employees other than personnel employed by the 
        state university board or the community college board and 
        covered by the board of trustees of the Minnesota state colleges 
        and universities supplemental retirement plan under chapter 
        354C, if provided for in a personnel policy of the public 
        employer or in the collective bargaining agreement between the 
        public employer and the exclusive representative of public 
        employees in an appropriate unit, in an amount matching employee 
        contributions on a dollar for dollar basis, but not to exceed an 
        employer contribution of $2,000 a year per employee; 
           (i) to the state of Minnesota deferred compensation plan 
        under section 352.96; or 
           (ii) in payment of the applicable portion of the premium on 
        a tax-sheltered annuity contract qualified contribution made to 
        any investment eligible under section 403(b) of the Internal 
        Revenue Code, if purchased from a qualified insurance company, 
        or to a qualified investment entity, as defined in subdivision 
        1a, and, in either case, if the employing unit has complied with 
        any applicable pension plan provisions of the Internal Revenue 
        Code with respect to the tax-sheltered annuity program during 
        the preceding calendar year; or 
           (6) for personnel employed by the state university board or 
        the community college board and not covered by clause (5), to 
        the supplemental retirement plan under chapter 354C, if provided 
        for in a personnel policy or in the collective bargaining 
        agreement of the public employer with the exclusive 
        representative of the covered employees in an appropriate unit, 
        in an amount matching employee contributions on a dollar for 
        dollar basis, but not to exceed an employer contribution of 
        $2,000 a year for each employee.  
           Sec. 2.  Minnesota Statutes 1999 Supplement, section 
        356.24, subdivision 1b, is amended to read: 
           Subd. 1b.  [VENDOR RESTRICTIONS.] A personnel policy for 
        unrepresented employees or a collective bargaining agreement or 
        a school board may establish limits on the number of vendors 
        under subdivision 1 that it will utilize and conditions under 
        which the vendors may contact employees both during working 
        hours and after working hours. 
           Sec. 3.  Minnesota Statutes 1998, section 356.24, is 
        amended by adding a subdivision to read: 
           Subd. 1c.  [STATE BOARD OF INVESTMENT REVIEW.] Any 
        insurance company, mutual fund company, or similar company 
        providing investments eligible under section 403(b) of the 
        Internal Revenue Code and eligible to receive employer 
        contributions under this section may request the state board of 
        investment, in conjunction with the department of commerce, to 
        review the financial standing of the company, the 
        competitiveness of its investment options and returns, and the 
        level of all charges and fees impacting those returns.  The 
        state board of investment may establish a fee for each review.  
        The state board of investment must maintain and have available a 
        list of all reviewed companies.  In reviewing companies under 
        this section, the state board of investment must not be 
        considered to be acting as a fiduciary or to be engaged in a 
        fiduciary activity under chapter 356A or common law. 
           Sec. 4.  [REPEALER.] 
           Minnesota Statutes 1999 Supplement, section 356.24, 
        subdivision 1a, is repealed. 
           Sec. 5.  [EFFECTIVE DATE.] 
           Sections 1 to 4 are effective on the day following final 
        enactment. 

                                   ARTICLE 14
                              RETIREMENT GENERALLY
           Section 1.  [REPEALER.] 
           Minnesota Statutes 1999 Supplement, section 356.61, is 
        repealed. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective retroactively to July 1, 1999. 

                                   ARTICLE 15
                          VOLUNTEER FIREFIGHTER RELIEF
                              ASSOCIATION CHANGES
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        69.021, subdivision 7, is amended to read: 
           Subd. 7.  [APPORTIONMENT OF FIRE STATE AID TO 
        MUNICIPALITIES AND RELIEF ASSOCIATIONS.] (a) The commissioner 
        shall apportion the fire state aid relative to the premiums 
        reported on the Minnesota Firetown Premium Reports filed under 
        this chapter to each municipality and/or firefighters' relief 
        association.  
           (b) The commissioner shall calculate an initial fire state 
        aid allocation amount for each municipality or fire department 
        under paragraph (c) and a minimum fire state aid allocation 
        amount for each municipality or fire department under paragraph 
        (d).  The municipality or fire department must receive the 
        larger fire state aid amount. 
           (c) The initial fire state aid allocation amount is the 
        amount available for apportionment as fire state aid under 
        subdivision 5, without inclusion of any additional funding 
        amount to support a minimum fire state aid amount under section 
        423A.02, subdivision 3, allocated one-half in proportion to the 
        population as shown in the last official statewide federal 
        census for each fire town and one-half in proportion to the 
        market value of each fire town, including (1) the market value 
        of tax exempt property and (2) the market value of natural 
        resources lands receiving in lieu payments under sections 
        477A.11 to 477A.14, but excluding the market value of minerals.  
        In the case of incorporated or municipal fire departments 
        furnishing fire protection to other cities, towns, or townships 
        as evidenced by valid fire service contracts filed with the 
        commissioner, the distribution must be adjusted proportionately 
        to take into consideration the crossover fire protection 
        service.  Necessary adjustments shall be made to subsequent 
        apportionments.  In the case of municipalities or independent 
        fire departments qualifying for the aid, the commissioner shall 
        calculate the state aid for the municipality or relief 
        association on the basis of the population and the market value 
        of the area furnished fire protection service by the fire 
        department as evidenced by duly executed and valid fire service 
        agreements filed with the commissioner.  If one or more fire 
        departments are furnishing contracted fire service to a city, 
        town, or township, only the population and market value of the 
        area served by each fire department may be considered in 
        calculating the state aid and the fire departments furnishing 
        service shall enter into an agreement apportioning among 
        themselves the percent of the population and the market value of 
        each service area.  The agreement must be in writing and must be 
        filed with the commissioner. 
           (d) The minimum fire state aid allocation amount is the 
        amount in addition to the initial fire state allocation amount 
        that is derived from any additional funding amount to support a 
        minimum fire state aid amount under section 423A.02, subdivision 
        3, and allocated to municipalities with volunteer firefighter 
        relief associations based on the number of active volunteer 
        firefighters who are members of the relief association as 
        reported in the annual financial reporting for the calendar year 
        1993 to the office of the state auditor, but not to exceed 30 
        active volunteer firefighters, so that all municipalities or 
        fire departments with volunteer firefighter relief associations 
        receive in total at least a minimum fire state aid amount per 
        1993 active volunteer firefighter to a maximum of 30 
        firefighters.  If a relief association did not exist in is 
        established after calendar year 1993 and before calendar year 
        2000, the number of active volunteer firefighters who are 
        members of the relief association as reported in the annual 
        financial reporting for calendar year 1998 to the office of the 
        state auditor, but not to exceed 30 active volunteer 
        firefighters, shall be used in this determination.  If a relief 
        association is established after calendar year 1999, the number 
        of active volunteer firefighters who are members of the relief 
        association as reported in the first annual financial reporting 
        submitted to the office of the state auditor, but not to exceed 
        20 active volunteer firefighters, must be used in this 
        determination. 
           (e) The fire state aid must be paid to the treasurer of the 
        municipality where the fire department is located and the 
        treasurer of the municipality shall, within 30 days of receipt 
        of the fire state aid, transmit the aid to the relief 
        association if the relief association has filed a financial 
        report with the treasurer of the municipality and has met all 
        other statutory provisions pertaining to the aid apportionment. 
           (f) The commissioner may make rules to permit the 
        administration of the provisions of this section.  
           (g) Any adjustments needed to correct prior misallocations 
        must be made to subsequent apportionments. 
           Sec. 2.  [69.041] [SHORTFALL FROM GENERAL FUND.] 
           (a) If the annual funding requirements of fire or police 
        relief associations or consolidation accounts under section 
        69.77, sections 69.771 to 69.775, or section 353A.09, exceed all 
        applicable revenue sources of a given year, including the 
        insurance premium taxes funding the applicable fire or police 
        state aid as set under section 60A.15, subdivision 1, paragraph 
        (e), clauses (1) to (3), the shortfall in the annual funding 
        requirements must be paid from the general fund to the extent 
        appropriated by the legislature. 
           (b) Nothing in this section may be deemed to relieve any 
        municipality from its obligation to a relief association or 
        consolidation account under law. 
           Sec. 3.  Minnesota Statutes 1998, section 69.773, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION.] (a) This section shall apply 
        applies to any firefighters' relief association specified in 
        section 69.771, subdivision 1, which pays or allows for an 
        option of a monthly service pension to a retiring firefighter 
        when at least the minimum requirements for entitlement to a 
        service pension specified in section 424A.02, any applicable 
        special legislation and the articles of incorporation or bylaws 
        of the relief association have been met.  Each firefighters' 
        relief association to which this section applies shall determine 
        the actuarial condition and funding costs of the special fund of 
        the relief association in accordance with subdivisions 2 and 3, 
        the financial requirements of the special fund of the relief 
        association in accordance with subdivision 4 and the minimum 
        obligation of the municipality with respect to the special fund 
        of the relief association in accordance with subdivision 5. 
           (b) If a firefighters relief association that previously 
        provided a monthly benefit service pension discontinues that 
        practice and either replaces the monthly benefit amount with a 
        lump sum benefit amount consistent with section 424A.02, 
        subdivision 3, or purchases an annuity in the same amount as the 
        monthly benefit from an insurance company licensed to do 
        business in this state, the actuarial condition and funding 
        costs, financial, and minimum municipal obligation requirements 
        of section 69.772 apply rather than this section. 
           Sec. 4.  Minnesota Statutes 1998, section 424A.001, 
        subdivision 9, is amended to read: 
           Subd. 9.  [SEPARATE FROM ACTIVE SERVICE.] "Separate from 
        active service" means to permanently cease to perform fire 
        suppression duties with a particular volunteer fire department, 
        to permanently cease to perform fire prevention duties, 
        to permanently cease to supervise fire suppression duties, and 
        to permanently cease to supervise fire prevention duties. 
           Sec. 5.  Minnesota Statutes 1998, section 424A.02, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) On or 
        before August 1 of each year as part of the certification of the 
        financial requirements and minimum municipal obligation made 
        pursuant to section 69.772, subdivision 4, or 69.773, 
        subdivision 5, the secretary or some other official of the 
        relief association designated in the bylaws of each relief 
        association shall calculate and certify to the governing body of 
        the applicable qualified municipality the average amount of 
        available financing per active covered firefighter for the most 
        recent three-year period.  The amount of available financing 
        shall include any amounts of fire state aid received or 
        receivable by the relief association, any amounts of municipal 
        contributions to the relief association raised from levies on 
        real estate or from other available revenue sources exclusive of 
        fire state aid, and one-tenth of the amount of assets in excess 
        of the accrued liabilities of the relief association calculated 
        pursuant to sections 69.772, subdivision 2; 69.773, subdivisions 
        2 and 4; or 69.774, subdivision 2, if any.  
           (b) The maximum service pension which the relief 
        association has authority to provide for in its bylaws for 
        payment to a member retiring after the calculation date when the 
        minimum age and service requirements specified in subdivision 1 
        are met must be determined using the table in paragraph (c) or 
        (d), whichever applies. 
           (c) For a relief association where the governing bylaws 
        provide for a monthly service pension to a retiring member, the 
        maximum monthly service pension amount per month for each year 
        of service credited that may be provided for in the bylaws is 
        the maximum service pension figure corresponding to the average 
        amount of available financing per active covered firefighter: 
          Minimum Average Amount of      Maximum Service Pension
          Available Financing per        Amount Payable per Month
               Firefighter               for Each Year of Service
                 $...                             $ .25
                   42                               .50
                   84                              1.00
                  126                              1.50
                  168                              2.00
                  209                              2.50
                  252                              3.00
                  294                              3.50
                  335                              4.00
                  378                              4.50
                  420                              5.00
                  503                              6.00
                  587                              7.00
                  672                              8.00
                  755                              9.00
                  839                             10.00
                  923                             11.00
                 1007                             12.00
                 1090                             13.00
                 1175                             14.00
                 1259                             15.00
                 1342                             16.00
                 1427                             17.00
                 1510                             18.00
                 1594                             19.00
                 1677                             20.00
                 1762                             21.00
                 1845                             22.00
                 1888                             22.50
                 1929                             23.00
                 2014                             24.00
                 2098                             25.00
                 2183                             26.00
                 2267                             27.00
                 2351                             28.00
                 2436                             29.00
                 2520                             30.00
                 2604                             31.00
                 2689                             32.00
                 2773                             33.00
                 2857                             34.00
                 2942                             35.00
                 3026                             36.00
                 3110                             37.00
                 3963                             38.00
                 4047                             39.00
                 4137                             40.00
                 any amount more than 4137        40.00
           Effective beginning December 31, 2000: 
                 4227                             41.00
                 4317                             42.00
                 4407                             43.00
                 4497                             44.00
           Effective beginning December 31, 2001: 
                 4587                             45.00
                 4677                             46.00
                 4767                             47.00
                 4857                             48.00
           Effective beginning December 31, 2002: 
                 4947                             49.00
                 5037                             50.00
                 5127                             51.00
                 5217                             52.00
           Effective beginning December 31, 2003: 
                 5307                             53.00
                 5397                             54.00
                 5487                             55.00
                 5577                             56.00
           (d) For a relief association in which the governing bylaws 
        provide for a lump sum service pension to a retiring member, the 
        maximum lump sum service pension amount for each year of service 
        credited that may be provided for in the bylaws is the maximum 
        service pension figure corresponding to the average amount of 
        available financing per active covered firefighter for the 
        applicable specified period: 
         Minimum Average Amount         Maximum Lump Sum Service
         of Available Financing         Pension Amount Payable
            per Firefighter             for Each Year of Service
                $..                              $10
                 11                               20
                 16                               30
                 23                               40
                 27                               50
                 32                               60
                 43                               80
                 54                              100
                 65                              120
                 77                              140
                 86                              160
                 97                              180
                108                              200
                131                              240
                151                              280
                173                              320
                194                              360
                216                              400
                239                              440
                259                              480
                281                              520
                302                              560
                324                              600
                347                              640
                367                              680
                389                              720
                410                              760
                432                              800
                486                              900
                540                             1000
                594                             1100
                648                             1200
                702                             1300
                756                             1400
                810                             1500
                864                             1600
                918                             1700
                972                             1800
               1026                             1900
               1080                             2000
               1134                             2100
               1188                             2200
               1242                             2300
               1296                             2400
               1350                             2500
               1404                             2600
               1458                             2700
               1512                             2800
               1566                             2900
               1620                             3000
               1672                             3100
               1726                             3200
               1753                             3250
               1780                             3300
               1820                             3375
               1834                             3400
               1888                             3500
               1942                             3600
               1996                             3700
               2023                             3750
               2050                             3800
               2104                             3900
               2158                             4000
               2212                             4100
               2265                             4200
               2319                             4300
               2373                             4400
               2427                             4500
               2481                             4600
               2535                             4700
               2589                             4800
               2643                             4900
               2697                             5000
               2751                             5100
               2805                             5200
               2859                             5300
               2913                             5400
               2967                             5500
               any amount more than 2967        5500
           Effective beginning December 31, 2000: 
               3021                             5600
               3075                             5700
               3129                             5800
               3183                             5900
               3237                             6000
           Effective beginning December 31, 2001: 
               3291                             6100
               3345                             6200
               3399                             6300
               3453                             6400
               3507                             6500
           Effective beginning December 31, 2002: 
               3561                             6600
               3615                             6700
               3669                             6800
               3723                             6900
               3777                             7000
           Effective beginning December 31, 2003: 
               3831                             7100
               3885                             7200
               3939                             7300
               3993                             7400
               4047                             7500
           (e) For a relief association in which the governing bylaws 
        provide for a monthly benefit service pension as an alternative 
        form of service pension payment to a lump sum service pension, 
        the maximum service pension amount for each pension payment type 
        must be determined using the applicable table contained in this 
        subdivision. 
           (f) If a relief association establishes a service pension 
        in compliance with the applicable maximum contained in paragraph 
        (c) or (d) and the minimum average amount of available financing 
        per active covered firefighter is subsequently reduced because 
        of a reduction in fire state aid or because of an increase in 
        the number of active firefighters, the relief association may 
        continue to provide the prior service pension amount specified 
        in its bylaws, but may not increase the service pension amount 
        until the minimum average amount of available financing per 
        firefighter under the table in paragraph (c) or (d), whichever 
        applies, permits. 
           (g) No relief association is authorized to provide a 
        service pension in an amount greater than $40 per month per year 
        of service credit or in an amount greater than $5,500 lump sum 
        per year of service credit even if the minimum average amount of 
        available financing per firefighter for a relief association 
        providing a monthly benefit service pension is greater than 
        $4,137, or, for a relief association providing a lump sum 
        service pension, is greater than $2,967.  No relief association 
        is authorized to provide a service pension in an amount greater 
        than the largest applicable flexible service pension maximum 
        amount even if the amount of available financing per firefighter 
        is greater than the financing amount associated with the largest 
        applicable flexible service pension maximum. 
           Sec. 6.  Minnesota Statutes 1998, section 424A.02, 
        subdivision 7, is amended to read: 
           Subd. 7.  [DEFERRED SERVICE PENSIONS.] (a) A member of a 
        relief association to which this section applies is entitled to 
        a deferred service pension if the member: 
           (1) has completed the lesser of the minimum period of 
        active service with the fire department specified in the bylaws 
        or 20 years of active service with the fire department; 
           (2) has completed at least five years of active membership 
        in the relief association; and 
           (3) separates from active service and membership before 
        reaching age 50 or the minimum age for retirement and 
        commencement of a service pension specified in the bylaws 
        governing the relief association if that age is greater than age 
        50.  
           (b) The deferred service pension starts when the former 
        member reaches age 50 or the minimum age specified in the bylaws 
        governing the relief association if that age is greater than age 
        50 and when the former member makes a valid written application. 
           (c) A relief association that provides a lump sum service 
        pension may, when its governing bylaws so provide, pay interest 
        on the deferred lump sum service pension during the period of 
        deferral.  If provided for in the bylaws, interest must be paid 
        at the rate actually earned on that portion of the assets if the 
        deferred benefit amount is invested by the relief association, 
        but not to exceed the interest rate specified in section 
        356.215, subdivision 4d, and must be in a separate account 
        established and maintained by the relief association or in a 
        separate investment vehicle held by the relief association or, 
        if not, at the interest rate of five percent, compounded 
        annually based on calendar year balances.  
           (d) For a deferred service pension that is transferred to a 
        separate account established and maintained by the relief 
        association or separate investment vehicle held by the relief 
        association, the deferred member bears the full investment risk 
        subsequent to transfer and in calculating the accrued liability 
        of the volunteer firefighter relief association that pays a lump 
        sum service pension, the accrued liability for deferred service 
        pensions is equal to the separate relief association account 
        balance or the fair market value of the separate investment 
        vehicle held by the relief association. 
           (e) The deferred service pension is governed by and must be 
        calculated under the general statute, special law, relief 
        association articles of incorporation, or and relief association 
        bylaw provisions applicable on the date on which the member 
        separated from active service with the fire department and 
        active membership in the relief association. 
           Sec. 7.  Minnesota Statutes 1998, section 424A.02, 
        subdivision 9, is amended to read: 
           Subd. 9.  [LIMITATION ON ANCILLARY BENEFITS.] Any relief 
        association, including any volunteer firefighters relief 
        association governed by section 69.77 or any volunteer 
        firefighters division of a relief association governed by 
        chapter 424, may only pay ancillary benefits which would 
        constitute an authorized disbursement as specified in section 
        424A.05 subject to the following requirements or limitations: 
           (a) (1) With respect to a relief association in which 
        governing bylaws provide for a lump sum service pension to a 
        retiring member, no ancillary benefit may be paid to any former 
        member or paid to any person on behalf of any former member 
        after the former member (1) (i) terminates active service with 
        the fire department and active membership in the relief 
        association; and (2) (ii) commences receipt of a service pension 
        as authorized pursuant to under this section; and 
           (b) (2) With respect to any relief association, no 
        ancillary benefit paid or payable to any member, to any former 
        member, or to any person on behalf of any member or former 
        member, may exceed in amount the total earned service pension of 
        the member or former member.  The total earned service 
        pension shall must be calculated using the service pension 
        amount specified in the bylaws of the relief association and the 
        years of service credited to the member or former member.  The 
        years of service shall must be determined as of (1) (i) the date 
        the member or former member became entitled to the ancillary 
        benefit; or (2) (ii) the date the member or former member died 
        entitling a survivor or the estate of the member or former 
        member to an ancillary benefit.  The ancillary benefit shall 
        must be calculated (1) (i) without regard to whether the member 
        or former member had attained the minimum amount of service and 
        membership credit specified in the governing bylaws; 
        and (2) (ii) without regard to the percentage amounts specified 
        in subdivision 2; except that the bylaws of any relief 
        association may provide for the payment of a survivor benefit in 
        an amount not to exceed five times the yearly service pension 
        amount specified in the bylaws on behalf of any member who dies 
        before having performed five years of active service in the fire 
        department with which the relief association is affiliated. 
           Sec. 8.  Minnesota Statutes 1998, section 424A.02, is 
        amended by adding a subdivision to read: 
           Subd. 9b.  [REPAYMENT OF SERVICE PENSION IN CERTAIN 
        INSTANCES.] If a retired volunteer firefighter does not 
        permanently separate from active firefighting service as 
        required by subdivision 1 and section 424A.001, subdivision 9, 
        by resuming active service as a firefighter in the same 
        volunteer fire department or as a person in charge of 
        firefighters in the same volunteer fire department, no 
        additional service pension amount is payable to the person, no 
        additional service is creditable to the person, and the person 
        shall repay any previously received service pension. 
           Sec. 9.  Minnesota Statutes 1998, section 424A.02, 
        subdivision 13, is amended to read: 
           Subd. 13.  [COMBINED SERVICE PENSIONS.] (a) If the articles 
        of incorporation or bylaws of the associations so provide, a 
        volunteer firefighter with credit for service as an active 
        firefighter in more than one volunteer firefighters relief 
        association is entitled, when the applicable requirements of 
        paragraph (b) are met and when otherwise qualified, to a 
        prorated service credit from each relief association. 
           (b) A volunteer firefighter receiving a prorated service 
        pension under this subdivision must have total service credit of 
        ten years or more, if every affected relief association does not 
        require only a five-year service vesting requirement, or five 
        years or more, if every affected relief association requires 
        only a five-year service vesting requirement, as a member of two 
        or more relief associations is entitled, when otherwise 
        qualified, to a prorated service pension from each association 
        in which.  The member has must have one year or more of service 
        credit in each relief association.  The prorated service pension 
        must be based on the service pension amount in effect for the 
        relief association on the date on which active volunteer 
        firefighting services covered by that relief association 
        terminate.  To receive a service pension under this subdivision, 
        the firefighter must become a member of the second or succeeding 
        association and must give notice of membership to the prior 
        association within two years of the date of termination of 
        active service with the prior association.  The notice must be 
        attested to by the second or subsequent association secretary. 
           Sec. 10.  Minnesota Statutes 1998, section 424A.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERSHIP.] (a) Every relief association 
        directly associated with a municipal fire department shall be 
        managed by a board of trustees consisting of nine members.  Six 
        trustees shall be elected from the membership of the relief 
        association and three trustees shall be drawn from the officials 
        of the municipalities served by the fire department to which the 
        relief association is directly associated.  The bylaws of a 
        relief association may provide that one of the six trustees 
        elected from the relief association may be a retired member 
        receiving a monthly pension who is elected by the membership of 
        the relief association.  The three ex officio trustees shall be 
        the mayor, the clerk, clerk-treasurer or finance director, and 
        the chief of the municipal fire department.  
           (b) Every relief association that is a subsidiary of an 
        independent nonprofit firefighting corporation shall be managed 
        by a board of trustees consisting of ten members.  Six trustees 
        shall be elected from the membership of the relief association, 
        three trustees shall be drawn from the officials of the 
        municipalities served by the fire department to which the relief 
        association is directly associated, and one trustee shall be the 
        fire chief.  The bylaws of a relief association may provide that 
        one of the six trustees elected from the relief association may 
        be a retired member receiving a monthly pension who is elected 
        by the membership of the relief association.  The three ex 
        officio trustees who are the elected officials shall be selected 
        as follows:  
           (1) if only one municipality contracts with the independent 
        nonprofit firefighting corporation, the ex officio trustees 
        shall be three elected officials of the contracting municipality 
        who are designated by the governing body of the municipality; 
           (2) if two municipalities contract with the independent 
        nonprofit firefighting corporation, the ex officio trustees 
        shall be two elected officials of the largest municipality in 
        population and one elected official of the next largest 
        municipality in population who are designated by the governing 
        bodies of the applicable municipalities; or 
           (3) if three or more municipalities contract with the 
        independent nonprofit corporation, the ex officio trustees shall 
        be one elected official of each of the three largest 
        municipalities in population who are designated by the governing 
        bodies of the applicable municipalities. 
           (c) If a relief association lacks the ex officio board 
        members provided for in paragraph (a) or (b) because the fire 
        department is not located in or associated with an organized 
        municipality, the ex officio board members must be appointed 
        from the fire department service area by the board of 
        commissioners of the applicable county.  The term of these 
        appointed ex officio board members is three years or until the 
        person's successor is qualified, whichever is later. 
           (d) An ex officio trustee under paragraph (a), (b), or (c) 
        shall have all the rights and duties accorded to any other 
        trustee except the right to be an officer of the board of 
        trustees.  
           (e) A board shall have at least three officers, which shall 
        be a president, a secretary and a treasurer.  These officers 
        shall be elected from among the elected trustees by either the 
        full board of trustees or by the membership, as specified in the 
        bylaws, and in no event shall any trustee hold more than one 
        officer position at any one time.  The terms of the elected 
        trustees and of the officers of the board shall be specified in 
        the bylaws of the relief association, but shall not exceed three 
        years.  If the term of the elected trustees exceeds one year, 
        the election of the various trustees elected from the membership 
        shall initially and shall thereafter continue to be staggered on 
        as equal a basis as is practicable. 
           Sec. 11.  Minnesota Statutes 1998, section 424A.05, 
        subdivision 3, is amended to read: 
           Subd. 3.  [AUTHORIZED DISBURSEMENTS FROM THE SPECIAL 
        FUND.] (a) Disbursements from the special fund shall are not 
        permitted to be made for any purpose other than one of the 
        following: 
           (1) For the payment of service pensions to retired members 
        of the relief association if authorized and paid pursuant to law 
        and the bylaws governing the relief association; 
           (2) For the payment of temporary or permanent disability 
        benefits to disabled members of the relief association if 
        authorized and paid pursuant to law and specified in amount in 
        the bylaws governing the relief association; 
           (3) For the payment of survivor benefits to surviving 
        spouses and surviving children, or if none, to designated 
        beneficiaries, of deceased members of the relief association if 
        authorized by and paid pursuant to law and specified in amount 
        in the bylaws governing the relief association; 
           (4) For the payment of any funeral benefits to the 
        surviving spouse, or if no surviving spouse, the estate, of the 
        deceased member of the relief association if authorized by law 
        and specified in amount in the bylaws governing the relief 
        association; 
           (5) For the payment of the fees, dues and assessments to 
        the Minnesota state fire department association and, to the 
        Minnesota area relief association coalition, and to the state 
        volunteer firefighters' benefit association in order to entitle 
        relief association members to membership in and the benefits of 
        these state associations or organizations; and 
           (6) For the payment of administrative expenses of the 
        relief association as authorized pursuant to section 69.80. 
           (b) For purposes of this chapter, a designated beneficiary 
        must be a natural person. 
           Sec. 12.  [VOLUNTEER FIREFIGHTERS LUMP SUM SERVICE 
        BENEFITS.] 
           Subdivision 1.  [APPLICATION.] This section applies to a 
        surviving spouse of a person who: 
           (1) was born on August 18, 1941; 
           (2) was employed as a building inspector by the city of St. 
        Paul; 
           (3) died during the course of his employment duties as a 
        building inspector on December 24, 1997; 
           (4) began service as a volunteer firefighter for the 
        Woodbury fire department in 1980 and continued that service up 
        to the time of his death; and 
           (5) would have been eligible to retire as a volunteer 
        firefighter and receive a lump sum service pension calculated at 
        the rate of $4,000 for each year of service on January 1, 1998. 
           Subd. 2.  [ELIGIBILITY FOR BENEFIT.] Notwithstanding any 
        law to the contrary, the eligible person described in 
        subdivision 1 is entitled to receive a survivor benefit from the 
        Woodbury fire department relief association benefit plan 
        calculated at the rate that would have been in effect had the 
        person described in subdivision 1 lived until January 1, 1998. 
           Subd. 3.  [RESTRICTIONS.] This section does not authorize 
        payment of more than a single survivor benefit to the eligible 
        individual specified in subdivision 1.  If a survivor benefit 
        has been paid to the eligible individual by the Woodbury fire 
        department relief association, this section authorizes payment 
        to the eligible individual of the difference between the amount 
        previously paid and the amount payable under the Woodbury fire 
        department relief association benefit plan in effect on January 
        1, 1998, assuming the volunteer firefighter survived and 
        provided service to that date. 
           Sec. 13.  [EFFECTIVE DATE.] 
           (a) Sections 1 to 5 and 7 to 11 are effective on the day 
        following final enactment. 
           (b) Section 6 is effective on the day following final 
        enactment and, with the appropriate bylaw amendment and 
        municipal approval, applies to deferred service pensions where 
        deferral began before the effective date of the municipal 
        approval.  
           (c) For a deferred service pension under section 6 that is 
        invested in a separate account or separate investment vehicle, 
        interest is payable up to the date of the transfer consistent 
        with the law and bylaw provisions in effect when the firefighter 
        terminated active firefighting service and actual investment 
        performance thereafter. 
           (d) Section 12 is effective on the day after the date on 
        which the Woodbury city council and the chief clerical officer 
        of the city of Woodbury complete, in a timely manner, their 
        compliance with Minnesota Statutes, section 645.021, 
        subdivisions 2 and 3. 

                                   ARTICLE 16
                        DISSOLUTIONS AND CONSOLIDATIONS 
                  OF VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS
           Section 1.  [424B.01] [DEFINITIONS.] 
           Subdivision 1.  [GENERALLY.] Unless the context of the 
        provision indicates that a different meaning is intended, each 
        of the terms in the following subdivisions have the meaning 
        indicated. 
           Subd. 2.  [APPLICABLE MUNICIPALITY.] "Applicable 
        municipality" means the municipality or municipalities in which 
        a consolidating relief association is located and to which a 
        consolidating relief association is associated by virtue of the 
        presence of at least one municipal official on the relief 
        association board of trustees under section 424A.04. 
           Subd. 3.  [CONSOLIDATING RELIEF 
        ASSOCIATION.] "Consolidating relief association" means a 
        volunteer firefighter relief association organized under chapter 
        317A and governed by chapter 424A that has initiated or has 
        completed the process of consolidating with one or more other 
        relief associations under this chapter. 
           Subd. 4.  [PRIOR RELIEF ASSOCIATIONS.] "Prior relief 
        associations" means the two or more volunteer firefighter relief 
        associations that have initiated the consolidation process under 
        this chapter by action of the board of trustees of the relief 
        association. 
           Subd. 5.  [RELIEF ASSOCIATION MEMBERSHIP.] "Relief 
        association membership" means all active members of the 
        volunteer firefighter relief association, all deferred retirees 
        and other vested inactive members of the volunteer firefighter 
        relief association, and any persons regularly receiving a 
        service pension or other retirement benefit from the volunteer 
        firefighters relief association. 
           Subd. 6.  [SUBSEQUENT RELIEF ASSOCIATION.] "Subsequent 
        relief association" means the volunteer firefighters relief 
        association that is designated to be the successor relief 
        association in the consolidation initiative resolutions of the 
        board of trustees of the prior relief associations or the 
        volunteer firefighters relief association organized under 
        chapters 317A and 424A for the purpose of operating as the 
        successor relief association after consolidation under this 
        chapter. 
           Sec. 2.  [424B.02] [CONSOLIDATION AUTHORIZED.] 
           Subdivision 1.  [INITIATION.] (a) With the approval of the 
        governing body of each applicable municipality, two or more 
        relief associations associated with fire departments serving 
        contiguous fire districts may initiate the consolidation of the 
        relief associations into a subsequent relief association. 
           (b) Initiation of a consolidation action must occur through 
        the proposal of a consolidation resolution to the board of 
        trustees of each volunteer firefighter relief association 
        notification of the relief association membership of the 
        potential consolidation and after conducting a public meeting on 
        the consolidation question. 
           Subd. 2.  [INITIATIVE PROCESSING; FILING.] (a) After a 
        consolidation initiative resolution has been filed with the 
        relief association board of trustees by one or more members of 
        the board, the relief association secretary shall provide 
        written notification of the initiative to the relief association 
        membership.  After notification of the relief association 
        membership, the board of trustees must hold a public hearing on 
        the initiative.  After the hearing, the board of trustees shall 
        act on the consolidation resolution. 
           (b) If the consolidation resolution is adopted by majority 
        vote of the board of trustees, the secretary shall file a copy 
        of the resolution with the other relief association or 
        associations also considering consolidation. 
           (c) If two or more volunteer firefighter relief 
        associations adopt a consolidation resolution, those relief 
        associations are consolidated effective the next following 
        January 1. 
           (d) Within 30 days of the adoption of the consolidation 
        resolution by all prior relief associations, the secretaries of 
        the applicable prior relief associations shall jointly notify in 
        writing the state auditor, the commissioner of revenue, and the 
        secretary of state of the consolidation. 
           Sec. 3.  [424B.03] [SUBSEQUENT RELIEF ASSOCIATION.] 
           Subdivision 1.  [NEW RELIEF ASSOCIATION.] If the subsequent 
        relief association is a new volunteer firefighter relief 
        association, the consolidated volunteer firefighters relief 
        association must be incorporated under chapter 317A.  The 
        incorporators of the consolidated relief association must 
        include at least one board member of each of the former 
        volunteer firefighters relief associations. 
           Subd. 2.  [SUCCESSOR RELIEF ASSOCIATION.] If the subsequent 
        relief association is one of the prior relief associations, the 
        articles of incorporation and bylaws must be appropriately 
        revised, effective on the consolidation effective date, and a 
        revised board of trustees must be elected before the 
        consolidation effective date. 
           Sec. 4.  [424B.04] [GOVERNANCE OF CONSOLIDATED VOLUNTEER 
        FIREFIGHTERS RELIEF ASSOCIATION.] 
           Subdivision 1.  [BOARD OF TRUSTEES.] The consolidated 
        volunteer firefighters relief association is governed by a board 
        of trustees as provided in section 424A.04, subdivision 1. 
           Subd. 2.  [COMPOSITION OF BOARD.] The board must have three 
        officers, including a president, a secretary, and a treasurer.  
        The membership of the consolidated volunteer firefighters relief 
        association must elect the three officers from the board 
        members.  A board of trustees member may not hold more than one 
        officer position at the same time. 
           Subd. 3.  [BOARD ADMINISTRATION.] The board of trustees 
        must administer the affairs of the relief association consistent 
        with this chapter and the applicable provisions of chapters 69, 
        356A, and 424A. 
           Sec. 5.  [424B.05] [SPECIAL AND GENERAL FUNDS.] 
           The consolidated volunteer firefighters relief association 
        must establish and maintain a special fund and a general fund.  
        The special fund must be established and maintained as provided 
        in section 424A.05.  The general fund must be established and 
        maintained as provided in section 424A.06. 
           Sec. 6.  [424B.06] [TRANSFERS.] 
           Subdivision 1.  [GENERALLY.] On the effective date of 
        consolidation, the records, assets, and liabilities of the prior 
        volunteer firefighter relief associations are transferred to the 
        consolidated volunteer firefighters relief association.  On the 
        effective date of consolidation, the prior volunteer 
        firefighters relief associations cease to exist as legal 
        entities, except for the purposes of winding up association 
        affairs as provided by this chapter. 
           Subd. 2.  [TRANSFER OF ADMINISTRATION.] On the effective 
        date of consolidation, the administration of the prior relief 
        associations is transferred to the board of trustees of the 
        subsequent volunteer firefighters relief association. 
           Subd. 3.  [TRANSFER OF RECORDS.] On the effective date of 
        consolidation, the secretary and the treasurer of the prior 
        volunteer firefighters relief associations shall transfer all 
        records and documents relating to the prior relief associations 
        to the secretary and treasurer of the subsequent volunteer 
        firefighters relief association. 
           Subd. 4.  [TRANSFER OF SPECIAL FUND ASSETS AND 
        LIABILITIES.] (a) On the effective date of consolidation, the 
        secretary and the treasurer of a prior volunteer firefighters 
        relief association shall transfer the assets of the special fund 
        of the applicable relief association to the special fund of the 
        subsequent relief association.  Unless the appropriate secretary 
        and treasurer decide otherwise, the assets may be transferred as 
        investment securities rather than cash.  The transfer must 
        include any accounts receivable.  The appropriate secretary must 
        settle any accounts payable from the special fund of the relief 
        association before the effective date of consolidation. 
           (b) Upon the transfer of the assets of the special fund of 
        a prior relief association, the pension liabilities of that 
        special fund become the obligation of the special fund of the 
        subsequent volunteer firefighters relief association. 
           (c) Upon the transfer of the prior relief association 
        special fund assets, the board of trustees of the subsequent 
        volunteer firefighters relief association has legal title to and 
        management responsibility for the transferred assets as trustees 
        for persons having a beneficial interest in those assets arising 
        out of the benefit coverage provided by the prior relief 
        association. 
           (d) The subsequent volunteer firefighters relief 
        association is the successor in interest in all claims for and 
        against the special funds of the prior volunteer firefighters 
        relief associations or the applicable municipalities with 
        respect to the special funds of the prior relief associations.  
        The status of successor in interest does not apply to any claim 
        against a prior relief association, the municipality in which 
        that relief association is located, or any person connected with 
        the prior relief association or the municipality, based on any 
        act or acts that were not done in good faith and that 
        constituted a breach of fiduciary responsibility under common 
        law or chapter 356A. 
           Sec. 7.  [424B.07] [DISSOLUTION OF PRIOR GENERAL FUND 
        BALANCES.] 
           Before the effective date of consolidation, the secretaries 
        of the volunteer firefighters relief associations shall settle 
        any accounts payable from the respective general fund or any 
        other relief association fund in addition to the relief 
        association special fund.  Investments held by a fund of the 
        prior relief associations in addition to the special fund must 
        be liquidated before the effective date of consolidation as the 
        bylaws of the relief association provide.  Before the effective 
        date of consolidation, the respective relief associations must 
        pay all applicable general fund expenses from their respective 
        general funds.  Any balance remaining in the general fund or in 
        a fund other than the relief association special fund as of the 
        effective date of consolidation must be paid to the new general 
        fund of the subsequent volunteer firefighter relief association. 
           Sec. 8.  [424B.08] [TERMINATION OF PRIOR RELIEF 
        ASSOCIATIONS.] 
           Following the transfer of administration, records, special 
        fund assets, and special fund liabilities from the prior relief 
        associations to the subsequent volunteer firefighters relief 
        association, the prior volunteer firefighter relief associations 
        cease to exist as legal entities for any purpose.  The 
        subsequent relief association secretary shall notify the 
        following governmental officials of the termination of the 
        respective volunteer firefighter relief associations and of the 
        establishment of the subsequent volunteer firefighters relief 
        association: 
           (1) Minnesota secretary of state; 
           (2) Minnesota state auditor; 
           (3) Minnesota commissioner of revenue; and 
           (4) commissioner of the federal Internal Revenue Service. 
           Sec. 9.  [424B.09] [ADMINISTRATIVE EXPENSES.] 
           The payment of authorized administrative expenses of the 
        subsequent volunteer firefighters relief association must be 
        from the special fund of the subsequent volunteer firefighters 
        relief association in accordance with section 69.80, and as 
        provided for in the bylaws of the subsequent volunteer 
        firefighters relief association and approved by the board of 
        trustees of the subsequent volunteer firefighters relief 
        association.  The payment of any other expenses of the 
        subsequent volunteer firefighters relief association must be 
        from the general fund of the subsequent volunteer firefighters 
        relief association in accordance with section 69.80 and as 
        provided for in the bylaws of the subsequent volunteer 
        firefighters relief association and approved by the board of 
        trustees of the subsequent volunteer firefighters relief 
        association. 
           Sec. 10.  [424B.10] [BENEFITS; FUNDING.] 
           Subdivision 1.  [BENEFITS.] (a) Notwithstanding section 
        424A.02, subdivision 3, to the contrary, the service pension of 
        the subsequent relief association as of the effective date of 
        consolidation is the highest dollar amount service pension 
        amount of any prior volunteer firefighters relief association in 
        effect immediately before the consolidation initiation if the 
        pension amount was implemented consistent with section 424A.02. 
           (b) Any increase in the service pension amount beyond the 
        amount implemented under paragraph (a) must conform with the 
        requirements and limitations of sections 69.771 to 69.775 and 
        424A.02. 
           Subd. 2.  [FUNDING.] (a) Unless the applicable 
        municipalities agree in writing to allocate the minimum 
        municipal obligation in a different manner, the minimum 
        municipal obligation under section 69.772 or 69.773, whichever 
        applies, must be allocated between the applicable municipalities 
        in proportion to their fire state aid. 
           (b) If any applicable municipality fails to meet its 
        portion of the minimum municipal obligation to the subsequent 
        relief association, all other applicable municipalities are 
        jointly obligated to provide the required funding upon 
        certification by the relief association secretary.  An 
        applicable municipality that pays the minimum municipal 
        obligation for another applicable municipality, the municipality 
        may collect the payment amount, plus a 25 percent surcharge, 
        from the responsible applicable municipality by any available 
        means, including deduction from any state aid or payment amount 
        payable to the responsible municipality upon certification of 
        the necessary information to the commissioner of finance. 
           Sec. 11.  [424B.20] [DISSOLUTION WITHOUT CONSOLIDATION.] 
           Subdivision 1.  [APPLICABLE DISSOLUTIONS.] This section 
        applies if the fire department associated with a volunteer 
        firefighter relief association is dissolved or eliminated by 
        action of the governing body of the municipality in which the 
        fire department was located or by the independent nonprofit 
        firefighting corporation, whichever applies, and no 
        consolidation with another volunteer firefighter relief 
        association under sections 424B.01 to 424B.10 is sought, or if a 
        volunteer firefighter relief association is dissolved or 
        eliminated with municipal approval, but the fire department 
        associated with the volunteer firefighter relief association is 
        not dissolved or eliminated, and no consolidation with another 
        volunteer firefighter relief association under sections 424B.01 
        to 424B.10 is applicable. 
           Subd. 2.  [PROCEDURES.] As part of the dissolution process, 
        all legal obligations of the relief association other than 
        service pensions and benefits must be settled under subdivision 
        3, a benefit trust must be established under subdivision 4, and 
        the affairs of the relief association must be concluded under 
        subdivision 5. 
           Subd. 3.  [SETTLEMENT OF NONBENEFIT LEGAL OBLIGATIONS.] (a) 
        Prior to the effective date of the dissolution of the volunteer 
        firefighter relief association established by the relief 
        association board of trustees, the board shall determine the 
        following: 
           (1) the fair market value of the assets of the special 
        fund; 
           (2) the total amount of the accounts payable and other 
        legal obligations of the special fund, excluding the accrued 
        liability of the special fund for service pensions and other 
        benefits; and 
           (3) the accrued liability of the special fund for service 
        pensions and other benefits payable or accrued under the 
        applicable bylaws of the relief association and chapter 424A. 
           (b) On or before the effective date of the dissolution of 
        the volunteer firefighter relief association, the board shall 
        liquidate sufficient special fund assets to pay the legal 
        obligations of the special fund and must settle those legal 
        obligations. 
           (c) On or before the effective date of the dissolution of 
        the volunteer firefighter relief association, the board shall 
        settle the legal obligations of the general fund of the relief 
        association. 
           Subd. 4.  [BENEFIT TRUST FUND ESTABLISHMENT.] (a) After the 
        settlement of nonbenefit legal obligations of the special fund 
        of the volunteer firefighter relief association under 
        subdivision 3, the board of the relief association shall 
        transfer the remaining assets of the special fund, as securities 
        or in cash, as applicable, to the chief financial official of 
        the municipality in which the associated fire department was 
        located if the fire department was a municipal fire department 
        or to the chief financial official of the municipality with the 
        largest population served by the fire department if the fire 
        department was an independent nonprofit firefighting 
        corporation.  The board shall also compile a schedule of the 
        relief association members to whom a service pension is or will 
        be owed, any beneficiary to whom a benefit is owed, the amount 
        of the service pension or benefit payable based on the 
        applicable bylaws and state law and the service rendered to the 
        date of the dissolution, and the date on which the pension or 
        benefit would first be payable under the bylaws of the relief 
        association and state law. 
           (b) The municipality in which is located a volunteer 
        firefighter relief association that is dissolving under this 
        section shall establish a separate account in the municipal 
        treasury which must function as a trust fund for members of the 
        volunteer firefighter relief association and their beneficiaries 
        to whom the volunteer firefighter relief association owes a 
        service pension or other benefit under the bylaws of the relief 
        association and state law.  Upon proper application, on or after 
        the initial date on which the service pension or benefit is 
        payable, the municipal treasurer shall pay the pension or 
        benefit due, based on the schedule prepared under paragraph (a) 
        and the other records of the dissolved relief association.  The 
        trust fund under this section must be invested and managed 
        consistent with section 69.775 and chapter 356A.  Upon payment 
        of the last service pension or benefit due and owing, any 
        remaining assets in the trust fund cancel to the general fund of 
        the municipality.  If the special fund of the volunteer 
        firefighter relief association had an unfunded actuarial accrued 
        liability upon dissolution, the municipality is liable for that 
        unfunded actuarial accrued liability. 
           Subd. 5.  [RELIEF ASSOCIATION AFFAIRS WIND-UP.] Upon 
        dissolution, the board of trustees of the volunteer firefighter 
        relief association shall transfer the records of the relief 
        association to the chief administrative officer of the 
        applicable municipality.  The board shall also notify the 
        commissioner of revenue, the state auditor, and the secretary of 
        state of the dissolution within 30 days of the effective date of 
        the dissolution. 
           Sec. 12.  [424B.21] [ANNUITY PURCHASES UPON DISSOLUTION.] 
           The board of trustees of a volunteer firefighter relief 
        association that is scheduled for dissolution may purchase 
        annuity contracts under section 424A.02, subdivision 8a, instead 
        of transferring special fund assets to a municipal trust fund 
        under section 424B.20, subdivision 4.  Payment of an annuity for 
        which a contract is purchased may not commence before the 
        retirement age specified in the relief association bylaws and in 
        compliance with section 424A.02, subdivision 1.  Legal title to 
        the annuity contract transfers to the municipal trust fund under 
        section 424B.20, subdivision 4. 
           Sec. 13.  [REPEALER.] 
           Minnesota Statutes 1998, section 424A.02, subdivision 11, 
        is repealed. 
           Sec. 14.  [EFFECTIVE DATE.] 
           Sections 1 to 13 are effective on July 1, 2000. 

                                   ARTICLE 17
                      MINNEAPOLIS POLICE AND FIREFIGHTERS
                           RELIEF ASSOCIATION CHANGES
           Section 1.  Minnesota Statutes 1998, section 423B.01, is 
        amended to read: 
           423B.01 [MINNEAPOLIS POLICE RELIEF ASSOCIATION; 
        DEFINITIONS.] 
           Subdivision 1.  [TERMS.] For purposes of sections 423B.01 
        to 423B.18, unless the context clearly indicates otherwise, each 
        of the terms defined in this section has the indicated meaning. 
           Subd. 2.  [ACTIVE MEMBER.] "Active member" means a person 
        who was hired and duly appointed by the city of Minneapolis 
        before May 1, 1959, as a police stenographer, police clerk, 
        police telephone operator, police radio operator, or police 
        mechanic or before June 15, 1980, as a police officer, police 
        matron, or assistant police matron, who is regularly entered on 
        the payroll of the police department, and who serves on active 
        duty. 
           Subd. 3.  [ACTIVE MEMBER PERCENTAGE.] The "active member 
        percentage" is the total number of units accrued by active 
        members of the association divided by the sum of the total 
        number of units to which eligible members are entitled and 
        active members of the association have accrued. 
           Subd. 4.  [AGE.] "Age" means a person's age at the person's 
        latest birthday. 
           Subd. 4 5.  [ANNUAL POSTRETIREMENT PAYMENT.] "Annual 
        postretirement payment" means the payment of a lump sum 
        postretirement benefit under section 423B.15 to an eligible 
        member on June 1 following the determination date in any year. 
           Subd. 5 6.  [ASSOCIATION.] "Association" means the 
        Minneapolis police relief association. 
           Subd. 7.  [CITY.] "City" means the city of Minneapolis. 
           Subd. 8.  [DETERMINATION DATE.] "Determination date" means 
        December 31 of each year. 
           Subd. 6 9.  [DISABILITY.] "Disability" means a physical or 
        mental incapacity of an active member to perform the duties of 
        the person's position in the service of the police department. 
           Subd. 7 10.  [DISCHARGE.] "Discharge" means a complete 
        separation from service in the police department. 
           Subd. 8 11.  [ELIGIBLE MEMBER.] "Eligible member" means a 
        person, including a service pensioner, a disability pensioner, a 
        survivor, or dependent of a deceased active member, service 
        pensioner, or disability pensioner, who received a pension or 
        benefit from the relief association during the 12 months before 
        the determination date. 
           Subd. 9 12.  [EXCESS INVESTMENT INCOME.] "Excess investment 
        income" means the amount, if any, by which the average time 
        weighted total rate of return earned by the fund in the most 
        recent prior five fiscal years has exceeded the actual average 
        percentage increase in the current monthly salary of a first 
        grade patrol officer in the most recent prior five fiscal years 
        plus two percent, and must be expressed as a dollar amount.  The 
        amount may not exceed one percent of the total assets of the 
        fund, except when the actuarial value of assets of the fund 
        according to the most recent annual actuarial valuation prepared 
        in accordance with sections 356.215 and 356.216 is greater than 
        102 percent of its actuarial accrued liabilities, in which case 
        the amount must not exceed 1-1/2 percent of the total assets of 
        the fund, and does not exist unless the yearly average 
        percentage increase of the time weighted total rate of return of 
        the fund for the previous five years exceeds by two percent the 
        yearly average percentage increase in monthly salary of a first 
        grade patrol officer during the previous five calendar years. 
           Subd. 10 13.  [FUND.] "Fund" means the special fund of the 
        relief association. 
           Subd. 14.  [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess 
        asset amount payment" means the payment of an additional 
        postretirement payment under section 2 to an eligible member on 
        June 1 following the determination date in the given year. 
           Subd. 15.  [NET TOTAL EXCESS ASSET AMOUNT.] "Net total 
        excess asset amount" is the total excess asset amount stated in 
        dollars and multiplied by the quantity one minus the active 
        member percentage. 
           Subd. 11 16.  [RETIRED MEMBER.] "Retired member" means a 
        former active member who has terminated active service in the 
        police department and who is entitled to receive a pension or 
        benefit under sections 423B.01 to 423B.18, as amended, or any 
        predecessor law. 
           Subd. 12 17.  [SURVIVING SPOUSE MEMBER.] "Surviving spouse 
        member" means the person who was the legally married spouse of 
        the member, who was residing with the decedent, and who was 
        married while or before the time the decedent was an active 
        member and was on the payroll of the police department, and who, 
        in case the deceased member was a pensioner or deferred 
        pensioner, was legally married to the member at least one year 
        before the decedent's termination of active service with the 
        police department.  The term does not include the surviving 
        spouse who has deserted a member or who has not been dependent 
        upon the member for support, nor does it include the surviving 
        common law spouse of a member. 
           Subd. 13 18.  [TIME WEIGHTED TOTAL RATE OF RETURN.] "Time 
        weighted total rate of return" means the percentage amount 
        determined by using the formula or formulas established by the 
        state board of investment under section 11A.04, clause (11), and 
        in effect on January 1, 1987. 
           Subd. 19.  [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess 
        asset amount" means the difference, if positive, expressed in 
        dollars, between the fund's market value of assets after any 
        deductions required by section 423B.15, subdivision 2, and 110 
        percent of the actuarial accrued liabilities based on the 
        actuarial valuation indicated in paragraph (b). 
           (b) The total excess asset amount in paragraph (a) exists 
        if the actuarial liability funding ratio, according to the most 
        recent annual actuarial valuation for the fund prepared in 
        accordance with sections 69.77, 356.215, and 356.216, with 
        adjustments required by section 423B.15, subdivision 2, equals 
        or exceeds 110 percent. 
           Subd. 14 20.  [UNIT.] "Unit" means one-eightieth of the 
        current monthly salary of a first grade patrol officer. 
           Subd. 15 21.  [ACTUARIAL EQUIVALENT.] "Actuarial 
        equivalent" or "actuarially equivalent" means the condition of 
        one annuity or benefit having an equal actuarial present value 
        as another annuity or benefit, determined as of a given date at 
        a specified age with each actuarial present value based on the 
        appropriate mortality table adopted by the board of directors 
        based on the experience of the fund and approved by the actuary 
        retained by the legislative commission on pensions and 
        retirement and using the applicable preretirement or 
        postretirement interest rate assumptions specified in section 
        356.216. 
           Sec. 2.  [423B.151] [EXCESS ASSET AMOUNT PAYMENT.] 
           Subdivision 1.  [DETERMINATION OF NET TOTAL EXCESS AMOUNT.] 
        The board of the association shall determine by May 1 of each 
        year whether the fund has a total excess asset amount for that 
        year.  If a total excess asset amount exists for the given year, 
        the net total excess asset amount shall be determined.  The 
        total excess asset amount and net total excess asset amount 
        shall be reported to the chief administrative officer of the 
        association, the mayor and governing body of the city, the state 
        auditor, the commissioner of finance, and the executive director 
        of the legislative commission on pensions and retirement.  The 
        portion of the net excess asset amount which is distributed 
        under this section must not be considered as income to or assets 
        of the fund for actuarial valuations of the fund for that year 
        under sections 69.77, 356.215, 356.216, and this act, except to 
        offset the amount distributed. 
           Subd. 2.  [TOTAL AVAILABLE FOR PAYMENT.] Twenty percent of 
        the net total excess asset amount determined under subdivision 1 
        is available for excess asset amount payments under subdivision 
        3. 
           Subd. 3.  [NET EXCESS ASSET AMOUNT PAYMENTS.] Except as 
        limited under subdivision 4, the net excess asset amount payment 
        to an eligible member is equal to the amount determined under 
        subdivision 2 multiplied by the units applicable to the eligible 
        member and divided by the total units of all eligible members. 
           Subd. 4.  [ENTITLEMENT; PRIORITY.] A person who is an 
        eligible member for the entire 12 months before the 
        determination date is eligible for a full excess asset amount 
        payment under subdivision 2.  A person who is an eligible member 
        for less than 12 months before the determination date is 
        eligible for a prorated excess asset amount payment.  If an 
        eligible member dies after the determination date and before the 
        excess asset amount payment commences, the association must pay 
        the eligible member's excess asset amount payment to the 
        eligible member's surviving spouse or, if no surviving spouse, 
        to the member's estate. 
           Subd. 5.  [PAYMENT METHOD.] The excess asset amount 
        payments determined under this section commence on June 1 
        following the determination date.  These amounts may be paid as 
        a lump sum, disbursed to the eligible members in 12 equal 
        monthly installments, or any other manner which the board shall 
        determine. 
           Subd. 6.  [NO GUARANTEE OF ANNUAL RESIDUAL INVESTMENT 
        PAYMENT.] No provision of this act may be interpreted or relied 
        upon by any member of the association to guarantee or entitle a 
        member to a net excess asset amount payment relating to any year 
        in which there is no net total excess asset amount. 
           Sec. 3.  [423B.19] [CITY OF MINNEAPOLIS; NORMAL COST 
        CONTRIBUTION ADJUSTMENT.] 
           Notwithstanding section 69.77, 356.215, 356.216, or any 
        other law to the contrary, the required city contributions 
        toward the association's normal cost, as determined by the 
        actuary, are reduced below that otherwise payable by the full 
        amount of active member contributions required by law to be 
        directed to the association's health insurance escrow account 
        rather than to the special fund. 
           Sec. 4.  [423B.20] [SUSPENSION OF NORMAL COST 
        CONTRIBUTIONS.] 
           Notwithstanding the provisions of section 69.77 or any 
        other law to the contrary, if a total excess asset amount 
        exists, as defined in section 423B.01, subdivision 19, the city 
        is not required to make a contribution to the fund for the 
        normal cost of active members. 
           Sec. 5.  [423B.21] [CHANGE IN AMORTIZATION PERIOD.] 
           Subdivision 1.  [AMORTIZATION TREATMENT.] Notwithstanding 
        section 69.77, subdivision 2b; 356.215; 356.216; or any other 
        law to the contrary, if the actuarial report for the association 
        indicates an unfunded actuarial accrued liability after the fund 
        has first achieved 100 percent funding, the unfunded obligation 
        is to be amortized on a level dollar basis by December 31 of the 
        year occurring 15 years later.  If subsequent actuarial 
        valuations determine a net actuarial experience loss incurred 
        during the year which ended as of the day before the most recent 
        actuarial valuation date, any unfunded liability due to that 
        loss is to be amortized on a level dollar basis by December 31 
        of the year occurring 15 years later. 
           Subd. 2.  [LIMITATION.] Notwithstanding subdivision 1, the 
        amortization period may not exceed the average life expectancy 
        of the remaining members. 
           Sec. 6.  [MINNEAPOLIS FIRE RELIEF ASSOCIATION; SURVIVOR 
        BENEFIT PAYMENT.] 
           Subdivision 1.  [SURVIVING SPOUSE BENEFIT ELIGIBILITY.] (a) 
        Notwithstanding Laws 1997, chapter 233, article 4, section 12, 
        or other law to the contrary, an eligible individual specified 
        in paragraph (b) is authorized to receive the benefit specified 
        in subdivision 2. 
           (b) An eligible individual is an individual born on May 27, 
        1927, who married a Minneapolis fire relief association retiree 
        on January 16, 1993, and who is a surviving spouse due to the 
        death of that retired firefighter on October 2, 1997. 
           Subd. 2.  [BENEFIT.] (a) An eligible individual under 
        subdivision 1, paragraph (b), is entitled to a surviving spouse 
        benefit computed under paragraph (f), as added by Laws 1997, 
        chapter 233, article 4, section 12. 
           (b) Benefits payable as a result of the benefit authorized 
        in paragraph (a) commence on the first of the month following 
        the effective date of this section. 
           Sec. 7.  [DEFINITIONS.] 
           Subdivision 1.  [DEFINITIONS.] Unless the context clearly 
        indicates otherwise, the following terms have the meaning given 
        in this section. 
           Subd. 2.  [ACTIVE MEMBER PERCENTAGE.] The "active member 
        percentage" is the total number of units accrued by active 
        members of the association divided by the sum of the total 
        number of units to which eligible members are entitled and 
        active members of the association have accrued. 
           Subd. 3.  [ASSOCIATION.] "Association" means the 
        Minneapolis firefighters relief association. 
           Subd. 4.  [CITY.] "City" means the city of Minneapolis. 
           Subd. 5.  [ELIGIBLE MEMBER.] "Eligible member" is a person 
        who receives a service, survivor, or disability pension payable 
        from the special fund of the association. 
           Subd. 6.  [FUND.] "Fund" means the association's special 
        fund. 
           Subd. 7.  [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess 
        asset amount payment" means the payment of an additional 
        postretirement payment under section 3 to an eligible member on 
        June 1 following the determination date in the given year. 
           Subd. 8.  [NET TOTAL EXCESS ASSET AMOUNT.] "Net total 
        excess asset amount" is the total excess asset amount stated in 
        dollars and multiplied by the quantity one minus the active 
        member percentage. 
           Subd. 9.  [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess 
        asset amount" means the difference, if positive, expressed in 
        dollars, between the fund's market value of assets after any 
        deductions required by Laws 1989, chapter 319, article 19, 
        section 7, subdivision 3, as amended, and 110 percent of the 
        actuarial accrued liabilities based on the actuarial valuation 
        indicated in paragraph (b). 
           (b) The total excess asset amount in paragraph (a) exists 
        if the actuarial liability funding ratio, according to the most 
        recent annual actuarial valuation for the fund prepared in 
        accordance with Minnesota Statutes, sections 69.77, 356.215, and 
        356.216, with adjustments required by Laws 1989, chapter 319, 
        article 19, section 7, subdivision 3, as amended, equals or 
        exceeds 110 percent. 
           Sec. 8.  [DETERMINATION OF NET TOTAL EXCESS ASSET AMOUNT.] 
           The board of the association shall determine by May 1 of 
        each year whether the fund has a total excess asset amount for 
        that year.  If a total excess asset amount exists for the given 
        year, the net total excess asset amount shall be determined.  
        The total excess asset amount and net total excess asset amount 
        shall be reported to the chief administrative officer of the 
        association, the mayor and governing body of the city, the state 
        auditor, the commissioner of finance, and the executive director 
        of the legislative commission on pensions and retirement.  The 
        portion of the net excess asset amount which is distributed 
        under section 9 must not be considered as income to or assets of 
        the fund for actuarial valuations of the fund for that year 
        under Minnesota Statutes, sections 69.77, 356.215, and 356.216, 
        and this act, except to offset the amount distributed.  
           Sec. 9.  [AMOUNT OF NET EXCESS ASSET AMOUNT PAYMENT.] 
           Subdivision 1.  [TOTAL AVAILABLE FOR PAYMENT.] Twenty 
        percent of the net total excess asset amount determined under 
        section 8 is available for net excess asset amount payments 
        under subdivision 2. 
           Subd. 2.  [NET EXCESS ASSET AMOUNT PAYMENTS.] Except as 
        limited under subdivision 3, the net excess asset amount payment 
        to an eligible member is equal to the amount determined under 
        subdivision 1 multiplied by the units applicable to the eligible 
        member and divided by the total units of all eligible members. 
           Subd. 3.  [ENTITLEMENT; PRIORITY.] A person who is an 
        eligible member for the entire 12 months before the 
        determination date is eligible for a full net excess asset 
        amount payment under subdivision 2.  A person who is an eligible 
        member for less than 12 months before the determination date is 
        eligible for a prorated net excess asset amount payment.  If an 
        eligible member dies after the determination date and before the 
        excess asset amount payment commences, the association must pay 
        that eligible member's net excess asset amount payment to the 
        eligible member's estate. 
           Subd. 4.  [PAYMENT METHOD.] The net excess asset amount 
        payments determined under subdivisions 2 and 3 commence on June 
        1 following the determination date.  These amounts may be paid 
        as a lump sum, disbursed to the eligible members in 12 equal 
        monthly installments, or any other manner which the board shall 
        determine. 
           Sec. 10.  [CITY NORMAL COST CONTRIBUTION ADJUSTMENT.] 
           Notwithstanding Minnesota Statutes, sections 69.77, 
        356.215, and 356.216, or other law to the contrary, the required 
        city contributions toward the association's normal cost, as 
        determined by the actuary, are reduced below that otherwise 
        payable by the full amount of active member contributions 
        required by law to be directed to the association's health 
        insurance escrow account rather than to the special fund. 
           Sec. 11.  [SUSPENSION OF NORMAL COST CONTRIBUTIONS.] 
           Notwithstanding the provisions of Minnesota Statutes, 
        section 69.77, or any other law to the contrary, if a total 
        excess asset amount exists, as defined in section 7, subdivision 
        9, the city is not required to make a contribution to the fund 
        for the normal cost of active members. 
           Sec. 12.  [NO GUARANTEE OF ANNUAL RESIDUAL INVESTMENT 
        PAYMENT.] 
           No provision of this act may be interpreted or relied upon 
        by any member of the association to guarantee or entitle a 
        member to a net excess asset amount payment relating to any year 
        in which there is no net total excess asset amount. 
           Sec. 13.  [CHANGE IN AMORTIZATION PERIOD.] 
           Subdivision 1.  [AMORTIZATION TREATMENT.] Notwithstanding 
        Minnesota Statutes, section 69.77, subdivision 2b; 356.215; 
        356.216; or any other law to the contrary, if the actuarial 
        report for the Minneapolis firefighters relief association 
        indicates an unfunded actuarial accrued liability, the unfunded 
        obligation is to be amortized on a level dollar basis by 
        December 31 of the year occurring 15 years later.  If subsequent 
        actuarial valuations determine a net actuarial experience loss 
        incurred during the year which ended as of the day before the 
        most recent actuarial valuation date, any unfunded liability due 
        to that loss is to be amortized on a level dollar basis by 
        December 31 of the year occurring 15 years later. 
           Subd. 2.  [LIMITATION.] Notwithstanding subdivision 1, the 
        amortization period may not exceed the average life expectancy 
        of the remaining members.  
           Sec. 14.  [EFFECTIVE DATE.] 
           (a) Sections 1 to 5 are effective on the day after the date 
        on which the Minneapolis city council and the chief clerical 
        officer of the city of Minneapolis complete, in a timely manner, 
        their compliance with Minnesota Statutes, section 645.021, 
        subdivisions 2 and 3. 
           (b) Section 6 is effective on the day after the date on 
        which the Minneapolis city council and the chief clerical 
        officer of the city of Minneapolis complete, in a timely manner, 
        their compliance with Minnesota Statutes, section 645.021, 
        subdivisions 2 and 3.  Section 5, if approved, applies 
        retroactively to contributions beginning after July 1, 1990. 
           (c) Sections 7 to 13 are effective on the day after the 
        date on which the Minneapolis city council and the chief 
        clerical officer of the city of Minneapolis complete, in a 
        timely manner, their compliance with Minnesota Statutes, section 
        645.021, subdivisions 2 and 3.  Section 5, if approved, applies 
        retroactively to contributions beginning after July 1, 1990. 

                                   ARTICLE 18
                             JUDGES RETIREMENT PLAN
                                 MODIFICATIONS
           Section 1.  Minnesota Statutes 1998, section 352D.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COVERAGE.] (a) Employees enumerated in 
        paragraph (c), clauses (2), (3), (4), and (6) to (15), if they 
        are in the unclassified service of the state or metropolitan 
        council and are eligible for coverage under the general state 
        employees retirement plan under chapter 352, are participants in 
        the unclassified program under this chapter unless the employee 
        gives notice to the executive director of the Minnesota state 
        retirement system within one year following the commencement of 
        employment in the unclassified service that the employee desires 
        coverage under the general state employees retirement plan.  For 
        the purposes of this chapter, an employee who does not file 
        notice with the executive director is deemed to have exercised 
        the option to participate in the unclassified plan. 
           (b) Persons referenced in paragraph (c), clauses (1) and 
        (5), are participants in the unclassified program under this 
        chapter unless the person is eligible to elect different 
        coverage under section 3A.07 or 352C.011 and, after July 1, 
        1998, elects retirement coverage by the applicable alternative 
        retirement plan.  Persons referenced in paragraph (c), clause 
        (16), are participants in the unclassified program under this 
        chapter for judicial employment in excess of the service credit 
        limit in section 490.121, subdivision 22. 
           (c) Enumerated employees and referenced persons are: 
           (1) the governor, the lieutenant governor, the secretary of 
        state, the state auditor, the state treasurer, and the attorney 
        general; 
           (2) an employee in the office of the governor, lieutenant 
        governor, secretary of state, state auditor, state treasurer, 
        attorney general; 
           (3) an employee of the state board of investment; 
           (4) the head of a department, division, or agency created 
        by statute in the unclassified service, an acting department 
        head subsequently appointed to the position, or an employee 
        enumerated in section 15A.0815 or 15A.083, subdivision 4; 
           (5) a member of the legislature; 
           (6) a permanent, full-time unclassified employee of the 
        legislature or a commission or agency of the legislature or a 
        temporary legislative employee having shares in the supplemental 
        retirement fund as a result of former employment covered by this 
        chapter, whether or not eligible for coverage under the 
        Minnesota state retirement system; 
           (7) a person who is employed in a position established 
        under section 43A.08, subdivision 1, clause (3), or in a 
        position authorized under a statute creating or establishing a 
        department or agency of the state, which is at the deputy or 
        assistant head of department or agency or director level; 
           (8) the regional administrator, or executive director of 
        the metropolitan council, general counsel, division directors, 
        operations managers, and other positions as designated by the 
        council, all of which may not exceed 27 positions at the council 
        and the chair, provided that upon initial designation of all 
        positions provided for in this clause, no further designations 
        or redesignations may be made without approval of the board of 
        directors of the Minnesota state retirement system; 
           (9) the executive director, associate executive director, 
        and not to exceed nine positions of the higher education 
        services office in the unclassified service, as designated by 
        the higher education services office before January 1, 1992, or 
        subsequently redesignated with the approval of the board of 
        directors of the Minnesota state retirement system, unless the 
        person has elected coverage by the individual retirement account 
        plan under chapter 354B; 
           (10) the clerk of the appellate courts appointed under 
        article VI, section 2, of the Constitution of the state of 
        Minnesota; 
           (11) the chief executive officers of correctional 
        facilities operated by the department of corrections and of 
        hospitals and nursing homes operated by the department of human 
        services; 
           (12) an employee whose principal employment is at the state 
        ceremonial house; 
           (13) an employee of the Minnesota educational computing 
        corporation; 
           (14) an employee of the world trade center board; and 
           (15) an employee of the state lottery board who is covered 
        by the managerial plan established under section 43A.18, 
        subdivision 3; and 
           (16) a judge who has exceeded the service credit limit in 
        section 490.121, subdivision 22. 
           Sec. 2.  Minnesota Statutes 1998, section 352D.04, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTRIBUTION RATES.] (a) The money used to 
        purchase shares under this section is the employee and employer 
        contributions provided in this subdivision. 
           (b) The employee contribution is an amount equal to the 
        employee contribution specified in section 352.04, subdivision 2.
           (c) The employer contribution is an amount equal to six 
        percent of salary.  
           (d) These contributions must be made in the manner provided 
        in section 352.04, subdivisions 4, 5, and 6.  
           (e) For members of the legislature, the contributions under 
        this subdivision also must be made on per diem payments received 
        during a regular or special legislative session, but may not be 
        made on per diem payments received outside of a regular or 
        special legislative session, on the additional compensation 
        attributable to a leadership position under section 3.099, 
        subdivision 3, living expense payments under section 3.101, or 
        special session living expense payments under section 3.103. 
           (f) For a judge who is a member of the unclassified plan 
        under section 352D.02, subdivision 1, paragraph (c), clause 
        (16), the employee contribution rate is eight percent of salary, 
        and there is no employer contribution. 
           Sec. 3.  Minnesota Statutes 1998, section 356.30, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY; COMPUTATION OF ANNUITY.] (1) 
        Notwithstanding any provisions to the contrary of the laws 
        governing the funds enumerated in subdivision 3, a person who 
        has met the qualifications of clause (2) may elect to receive a 
        retirement annuity from each fund in which the person has at 
        least six months allowable service, based on the allowable 
        service in each fund, subject to the provisions of clause (3).  
           (2) A person may receive upon retirement a retirement 
        annuity from each fund in which the person has at least six 
        months allowable service, and augmentation of a deferred annuity 
        calculated under the laws governing each public pension plan or 
        fund named in subdivision 3, from the date the person terminated 
        all public service if: 
           (a) the person has allowable service totaling an amount 
        that allows the person to receive an annuity in any two or more 
        of the enumerated funds; and 
           (b) the person has not begun to receive an annuity from any 
        enumerated fund or the person has made application for benefits 
        from all funds and the effective dates of the retirement annuity 
        with each fund under which the person chooses to receive an 
        annuity are within a one-year period.  
           (3) The retirement annuity from each fund must be based 
        upon the allowable service in each fund, except that:  
           (a) The laws governing annuities must be the law in effect 
        on the date of termination from the last period of public 
        service under a covered fund with which the person earned a 
        minimum of one-half year of allowable service credit during that 
        employment.  
           (b) The "average salary" on which the annuity from each 
        covered fund in which the employee has credit in a formula plan 
        shall be based on the employee's highest five successive years 
        of covered salary during the entire service in covered funds.  
           (c) The formula percentages to be used by each fund must be 
        those percentages prescribed by each fund's formula as continued 
        for the respective years of allowable service from one fund to 
        the next, recognizing all previous allowable service with the 
        other covered funds.  
           (d) Allowable service in all the funds must be combined in 
        determining eligibility for and the application of each fund's 
        provisions in respect to actuarial reduction in the annuity 
        amount for retirement prior to normal retirement.  
           (e) The annuity amount payable for any allowable service 
        under a nonformula plan of a covered fund must not be affected 
        but such service and covered salary must be used in the above 
        calculation.  
           (f) This section shall not apply to any person whose final 
        termination from the last public service under a covered fund is 
        prior to May 1, 1975.  
           (g) For the purpose of computing annuities under this 
        section the formula percentages used by any covered fund, except 
        the public employees police and fire fund, the judges' 
        retirement fund, and the state patrol retirement fund, must not 
        exceed the percent specified in section 356.19, subdivision 4, 
        per year of service for any year of service or fraction 
        thereof.  The formula percentage used by the public employees 
        police and fire fund and the state patrol retirement fund must 
        not exceed the percent specified in section 356.19, subdivision 
        6, per year of service for any year of service or fraction 
        thereof.  The formula percentage used by the judges' retirement 
        fund must not exceed the percent specified in section 356.19, 
        subdivision 8, per year of service for any year of service or 
        fraction thereof.  The formula percentage used by the 
        legislators retirement plan and the elective state officers 
        retirement must not exceed 2.5 percent, but this limit does not 
        apply to the adjustment provided under section 3A.02, 
        subdivision 1, paragraph (c), or 352C.031, paragraph (b). 
           (h) Any period of time for which a person has credit in 
        more than one of the covered funds must be used only once for 
        the purpose of determining total allowable service.  
           (i) If the period of duplicated service credit is more than 
        six months, or the person has credit for more than six months 
        with each of the funds, each fund shall apply its formula to a 
        prorated service credit for the period of duplicated service 
        based on a fraction of the salary on which deductions were paid 
        to that fund for the period divided by the total salary on which 
        deductions were paid to all funds for the period.  
           (j) If the period of duplicated service credit is less than 
        six months, or when added to other service credit with that fund 
        is less than six months, the service credit must be ignored and 
        a refund of contributions made to the person in accord with that 
        fund's refund provisions.  
           Sec. 4.  Minnesota Statutes 1998, section 490.121, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ALLOWABLE SERVICE.] "Allowable service" means a 
        whole year, or any fraction thereof, subject to the service 
        credit limit in subdivision 22, served as a judge at any time, 
        or served as a referee in probate for all referees in probate 
        who were in office prior to January 1, 1974. 
           Sec. 5.  Minnesota Statutes 1998, section 490.121, is 
        amended by adding a subdivision to read: 
           Subd. 22.  [SERVICE CREDIT LIMIT.] "Service credit limit" 
        means the greater of:  (1) 24 years of allowable service under 
        chapter 490; or (2) for judges with allowable service rendered 
        prior to July 1, 1980, the number of years of allowable service 
        under chapter 490, which, when multiplied by the percentage 
        listed in section 356.19, subdivision 7 or 8, whichever is 
        applicable to each year of service, equals 76.8. 
           Sec. 6.  Minnesota Statutes 1998, section 490.123, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [MEMBER CONTRIBUTION RATES.] (a) A judge who is 
        covered by the federal old age, survivors, disability, and 
        health insurance program whose service does not exceed the 
        service credit limit in section 490.121, subdivision 22, shall 
        contribute to the fund from each salary payment a sum equal to 
        8.00 percent of salary.  
           (b) A judge not so covered whose service does not exceed 
        the service credit limit in section 490.121, subdivision 22, 
        shall contribute to the fund from each salary payment a sum 
        equal to 8.15 percent of salary. 
           (c) The contribution under this subdivision is payable by 
        salary deduction. 
           Sec. 7.  Minnesota Statutes 1998, section 490.123, 
        subdivision 1b, is amended to read: 
           Subd. 1b.  [EMPLOYER CONTRIBUTION RATE.] The employer 
        contribution rate to the fund on behalf of a judge is 20.5 
        percent of salary and continues after a judge exceeds the 
        service credit limit in section 490.121, subdivision 22. 
           The employer contribution must be paid by the state court 
        administrator and is payable at the same time as member 
        contributions under subdivision 1a or employee contributions to 
        the unclassified plan in chapter 352D for judges whose service 
        exceeds the limit in section 490.121, subdivision 22, are 
        remitted. 
           Sec. 8.  Minnesota Statutes 1998, section 490.124, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BASIC RETIREMENT ANNUITY.] Except as 
        qualified hereinafter from and after mandatory retirement date, 
        normal retirement date, early retirement date, or one year from 
        the disability retirement date, as the case may be, a retirement 
        annuity shall be payable to a retiring judge from the judges' 
        retirement fund in an amount equal to:  (1) the percent 
        specified in section 356.19, subdivision 7, multiplied by the 
        judge's final average compensation multiplied by the number of 
        years and fractions of years of allowable service rendered prior 
        to July 1, 1980; plus (2) the percent specified in section 
        356.19, subdivision 8, multiplied by the judge's final average 
        compensation multiplied by the number of years and fractions of 
        years of allowable service rendered after June 30, 1980; 
        provided that the annuity must not exceed 70 percent of the 
        judge's annual salary for the 12 months immediately preceding 
        retirement.  Service that exceeds the service credit limit in 
        section 490.121, subdivision 22, must be excluded in calculating 
        the retirement annuity, but compensation earned during this 
        service must be used in determining a judge's final average 
        compensation and calculating the retirement annuity.  
           Sec. 9.  [PRIOR SERVICE.] 
           This section applies to a person who is a judge on July 1, 
        2000, and whose service under Minnesota Statutes, chapter 490, 
        on that date exceeds the service credit limit in Minnesota 
        Statutes, section 490.121, subdivision 22.  A judge to whom this 
        section applies may elect to have money transferred from the 
        judges' plan to the judge's account in the unclassified 
        employees plan in Minnesota Statutes, chapter 352D.  The amount 
        to be transferred is eight percent of the salary the judge 
        earned after reaching the service credit limit defined in 
        Minnesota Statutes, section 490.121, subdivision 22.  A judge 
        electing this transfer forfeits all service credit under 
        Minnesota Statutes, chapter 490, that exceeds the limit in 
        Minnesota Statutes, section 490.121, subdivision 22.  An 
        election under this section must be made before retirement as a 
        judge, and within 120 days of the effective date of this 
        section.  The election must be made on a form and in a manner 
        specified by the executive director of the Minnesota state 
        retirement system. 
           Sec. 10.  [EFFECTIVE DATE.] 
           Sections 1 to 9 are effective on July 1, 2000. 

                                   ARTICLE 19
                       VARIOUS INDIVIDUAL AND SMALL GROUP  
                               PENSION PROVISIONS
           Section 1.  [MSRS-GENERAL; LATE DISABILITY BENEFIT 
        APPLICATION AUTHORIZED.] 
           (a) Notwithstanding any provision of Minnesota Statutes, 
        section 352.113, subdivision 4, to the contrary, a person 
        described in paragraph (b) is authorized to apply for a 
        disability benefit from the general state employees retirement 
        plan of the Minnesota state retirement system under Minnesota 
        Statutes, section 352.113. 
           (b) An eligible person is a person who: 
           (1) was born on October 3, 1952; 
           (2) was employed by the department of economic security 
        from August 1978 to December 1994; 
           (3) is disabled within the meaning of Minnesota Statutes, 
        section 352.01, subdivision 17; 
           (4) began receiving social security disability insurance 
        benefits in January 1995; and 
           (5) began part-time employment in January 1998 and 
        continues in that employment with the Minnesota state council on 
        disability. 
           (c) The eligible person under paragraph (b) must provide, 
        in conjunction with the disability application, any relevant 
        evidence that the executive director of the Minnesota state 
        retirement system requires about the existence of a total and 
        permanent disability as defined in Minnesota Statutes, section 
        352.01, subdivision 17, and about the date on which the 
        disability occurred and its relationship to the termination of 
        active service in December 1994. 
           (d) If the eligible person files a disability benefit 
        application and if the eligible person provides sufficient 
        evidence of disability and the occurrence of the disability 
        under paragraph (c), the disability benefit becomes payable for 
        the first month next following the application and applicable 
        evidence.  The disability benefit must be calculated under the 
        laws in effect at the time that the eligible person terminated 
        active service in December 1994.  The disability benefit must 
        include any applicable deferred annuities augmentation under 
        Minnesota Statutes, section 352.72, subdivision 2. 
           (e) Nothing in this section may be deemed to exempt the 
        eligible person from the partial reemployment of a disabilitant 
        provision described in Minnesota Statutes, section 352.113, 
        subdivision 7. 
           Sec. 2.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; SERVICE 
        CREDIT PURCHASE FOR UNCREDITED HENNEPIN COUNTY EMPLOYMENT.] 
           (a) An eligible person described in paragraph (b) is 
        entitled to obtain one year of allowable service credit from the 
        general employees retirement plan of the public employees 
        retirement association. 
           (b) An eligible person is a person who: 
           (1) was born April 12, 1936; 
           (2) retired from the teachers retirement association on 
        July 1, 1997; 
           (3) is currently a recipient of a retirement annuity from 
        the teachers retirement association and a retirement annuity 
        from the general state employees retirement plan of the 
        Minnesota state retirement system; and 
           (4) was employed during the period September 1966 through 
        September 1967 by Hennepin county as a parole officer, when 
        member contributions for retirement coverage were deducted, but 
        for which no allowable service credit in the general employees 
        retirement plan of the public employees retirement association 
        was recorded. 
           (c) Notwithstanding any provision of Minnesota Statutes, 
        sections 353.29, subdivision 7, and 356.30, to the contrary, an 
        eligible person may file an application for a retirement annuity 
        from the general employees retirement plan of the public 
        employees retirement association retroactive to July 1, 1997, 
        with benefits paid retroactive to that date, and may have the 
        annuity calculated as a combined service annuity. 
           (d) The allowable service credit must be granted by the 
        public employees retirement association upon the filing of a 
        valid retirement application by the eligible person. 
           (e) Within 30 days of the receipt of that application by 
        the public employees retirement association and notification by 
        the public employees retirement association to the county 
        administrator, Hennepin county may pay one-half of the prior 
        service credit purchase payment amount calculated under 
        Minnesota Statutes, section 356.55.  If Hennepin county does not 
        pay the required amount in a timely fashion, the executive 
        director of the public employees retirement association shall 
        notify the commissioner of finance of that fact and the 
        commissioner shall deduct from any state aid or state 
        appropriation payable to Hennepin county that amount, plus 
        interest on that amount of 1.5 percent per month for each month 
        or portion of a month from the filing of the retirement 
        application under paragraph (d) to the date of deduction. 
           (f) An amount equal to one-half of the prior service credit 
        purchase payment amount calculated under Minnesota Statutes, 
        section 356.55, must be charged against the public employees 
        retirement association as an administrative expense. 
           (g) This allowable service credit provision expires on 
        January 1, 2001. 
           Sec. 3.  [PAYMENT OF OMITTED SALARY DEDUCTIONS.] 
           Subdivision 1.  [APPLICATION.] A person who was born on 
        October 23, 1943, was employed by Dakota county as a part-time 
        maintenance employee on October 16, 1985, and first had public 
        employees retirement association member contributions deducted 
        as of September 15, 1986, is entitled to purchase eight months 
        of service credit from the public employees retirement 
        association. 
           Subd. 2.  [PAYMENT.] The purchase payment amount for the 
        service credit purchase authorized in subdivision 1 is governed 
        by Minnesota Statutes, section 356.55.  Notwithstanding any 
        provision of Minnesota Statutes, section 356.55, subdivision 5, 
        to the contrary, the eligible person must pay, on or before June 
        1, 2001, an amount equal to the employee contribution rate 
        applied to the person's actual salary rate in effect between 
        January 17, 1986, and September 15, 1986, plus annual compound 
        interest at the rate of 8.5 percent from the date that the 
        employer contributions should have been paid and the date of 
        actual payment.  Dakota county shall pay the balance of the 
        required purchase payment amount within 30 days of the payment 
        by the eligible person.  If Dakota county fails to pay its 
        required amount, the executive director of the public employees 
        retirement association may notify the commissioner of finance of 
        that fact and the commissioner of finance may order that the 
        required amount be deducted from any subsequent state payment to 
        Dakota county and transmitted to the public employees retirement 
        association. 
           Subd. 3.  [APPLICATION; DOCUMENTATION.] A person described 
        in subdivision 1 must apply with the executive director of the 
        public employees retirement association to make the purchase.  
        The application must be in writing and must include all 
        necessary documentation of the applicability of this section and 
        any other relevant information that the executive director may 
        require. 
           Subd. 4.  [LIMITATION.] Authority under this section 
        expires on July 1, 2001. 
           Sec. 4.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; REDUCED 
        SERVICE CREDIT REQUIREMENT FOR DISABILITY BENEFIT APPLICATION.] 
           (a) An eligible person described in paragraph (b) is 
        entitled to apply for a disability benefit from the general 
        employees retirement plan of the public employees retirement 
        association with 14 months of service credit subsequent to the 
        person's last termination of membership, notwithstanding any 
        provision to the contrary of Minnesota Statutes, section 353.33, 
        subdivision 1.  
           (b) An eligible person is a person who: 
           (1) was born on May 30, 1945; 
           (2) began public employment with Todd county in November 
        1978; 
           (3) first terminated public employment in August 1982; 
           (4) resumed public employment with Morrison county in 
        October 1987; 
           (5) subsequently terminated public employment with Meeker 
        county in November 1997; 
           (6) resumed public employment with Todd county in August 
        1998; and 
           (7) subsequently terminated public employment October 8, 
        1999. 
           Sec. 5.  [TEACHERS RETIREMENT ASSOCIATION; REFUND OF 
        CERTAIN INTEREST CHARGES.] 
           (a) Upon filing a written demand for the interest refund, a 
        person described in paragraph (b) is entitled to receive a 
        refund of interest specified in paragraph (c) for the period 
        during which the teachers retirement association was negligent 
        in providing accurate information to the eligible person or was 
        negligent in making timely reports to other Minnesota public 
        pension plans in which the eligible person has service credit. 
           (b) An eligible person is a person who: 
           (1) retired from the teachers retirement association 
        effective September 1, 1999; 
           (2) repaid a previously taken refund to the teachers 
        retirement association on August 23, 1999, restoring 10.979 
        years of allowable service credit; 
           (3) began the retirement application and refund repayment 
        process in February 1999 and was first able to file retirement 
        forms with the teachers retirement association office on August 
        27, 1999; and 
           (4) was charged interest on the repayment of refund for the 
        period during which the teachers retirement association failed 
        to provide requested information and failed to contact the 
        public employees retirement association and the St. Paul 
        teachers retirement fund association. 
           (c) The refund interest rate is 0.708 percent per month, 
        compounded monthly, on the refund repayment amount that would 
        have been payable on April 15, 1999, applied to the period April 
        15, 1999, to August 23, 1999, and 8.5 percent per year, 
        compounded annually, on that initially determined amount from 
        August 23, 1999, until the interest repayment is made. 
           (d) The interest refund is payable on the first day of the 
        month next following the date on which the eligible person files 
        the written demand under paragraph (a). 
           Sec. 6.  [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 
        UNCREDITED TEACHING SERVICE PERIODS.] 
           (a) An eligible person described in paragraph (b) is 
        entitled to purchase allowable service credit from the 
        Minneapolis teachers retirement fund association basic program 
        for the periods of teaching employment specified in paragraph 
        (c) by making the payment required under Minnesota Statutes, 
        section 356.55. 
           (b) An eligible person is a person who: 
           (1) was employed by special school district No. 1 
        (Minneapolis) as a long call reserve teacher from October 1972 
        to June 1973 and was covered by the Minneapolis employees 
        retirement fund; 
           (2) was employed by special school district No. 1 
        (Minneapolis) as a school social worker at Franklin junior high 
        school from August 28, 1973, through June 12, 1974, and from 
        August 29, 1974, through June 11, 1975, without retirement 
        coverage; 
           (3) was employed by special school district No. 1 
        (Minneapolis) as a school social worker at North high school 
        from August 29, 1975, through December 19, 1975, covered by the 
        Minneapolis teachers retirement fund association; 
           (4) was retained by special school district No. 1 
        (Minneapolis) in the capacity of a school social worker at North 
        high school as an hourly wage social worker from August 1976 
        through June 1983 without retirement coverage; and 
           (5) is currently employed by Hennepin county covered by the 
        public employees retirement association. 
           (c) The periods for allowable service credit purchase are 
        August 28, 1973, through June 12, 1974; and August 29, 1974, 
        through June 11, 1975. 
           (d) An eligible person must provide any relevant 
        documentation related to eligibility to make this service credit 
        purchase required by the executive director of the Minneapolis 
        teachers retirement fund association. 
           (e) Allowable service credit for the purchase periods must 
        be granted by the Minneapolis teachers retirement fund 
        association to the account of the eligible person upon receipt 
        of the prior service credit purchase payment amount. 
           (f) The prior service credit purchase payment amount shall 
        be computed by the actuary retained by the legislative 
        commission on pensions and retirement.  That computation must, 
        in applying the process stated in Minnesota Statutes, section 
        356.55, give recognition to the liabilities that would be 
        created in the Minneapolis teachers retirement fund association 
        and other Minnesota public pension funds due to the service 
        credit purchase. 
           (g) Following receipt of that purchase payment amount, the 
        executive director of the Minneapolis teachers retirement fund 
        association shall allocate and transmit that amount to the 
        applicable pension administrations, as determined under 
        paragraph (f). 
           Sec. 7.  [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION; 
        PRIOR SERVICE CREDIT PURCHASE AUTHORIZATION.] 
           (a) Notwithstanding any provision of law to the contrary, a 
        person described in paragraph (b) is authorized to purchase 
        allowable service credit from the basic program of the 
        Minneapolis teachers retirement fund association for the period 
        described in paragraph (c) by making the payment specified in 
        paragraph (d). 
           (b) An eligible person for purposes of paragraph (a) is a 
        person who: 
           (1) was born on October 1, 1942; 
           (2) is currently employed by special school district No. 1 
        (Minneapolis) and is currently a member of the Minneapolis 
        teachers retirement fund association; 
           (3) was initially hired by special school district No. 1 
        (Minneapolis) on November 13, 1967, and taught at Sanford junior 
        high school until June 1968; 
           (4) was reemployed by special school district No. 1 
        (Minneapolis) as an adult basic education English and social 
        studies teacher on May 25, 1970, and continued to teach in that 
        program until December 17, 1984; and 
           (5) as a result of binding arbitration of an employment 
        dispute, was employed by special school district No. 1 
        (Minneapolis) as an English teacher at Franklin junior high 
        school on December 17, 1984. 
           (c) The service credit purchase period is any period 
        between May 25, 1970, to December 17, 1984, that has not 
        previously been credited by the Minneapolis teachers retirement 
        fund association. 
           (d) To purchase the allowable service credit, the eligible 
        person must pay to the Minneapolis teachers retirement fund 
        association the prior service credit purchase payment calculated 
        under Minnesota Statutes, section 356.55. 
           (e) The eligible person must provide all relevant 
        documentation of the applicability of the requirements set forth 
        in paragraph (b) and any other applicable information that the 
        executive director of the Minneapolis teachers retirement fund 
        association may request.  
           (f) This prior service credit purchase authority expires on 
        July 1, 2001, or on the date of the eligible person's 
        termination of active service with special school district No. 1 
        (Minneapolis), whichever is earlier. 
           Sec. 8.  [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR 
        INDEPENDENT CONTRACT UNCREDITED TEACHING SERVICE PERIOD.] 
           (a) An eligible person described in paragraph (b) is 
        authorized to purchase allowable service credit from the 
        Minneapolis teachers retirement fund association for the period 
        of teaching employment specified in paragraph (c) by making the 
        payment required under Minnesota Statutes, section 356.55, by 
        the last date authorized for receiving payment under that 
        section, or the eligible person's effective date of retirement, 
        whichever is earlier. 
           (b) An eligible person is a person who: 
           (1) was born on May 22, 1939; 
           (2) was employed by special school district No. 1 
        (Minneapolis) and covered as an active member by the Minneapolis 
        teachers retirement fund association from July 27, 1962, to June 
        11, 1967; and 
           (3) was retained by special school district No. 1 
        (Minneapolis) at an hourly wage rate as a teacher in the adult 
        basic education program from April 23, 1980, to September 28, 
        1992. 
           (c) The period for allowable service credit purchase is 
        from April 23, 1980, to September 28, 1992.  
           (d) An eligible person under paragraph (b) must provide any 
        relevant documentation related to eligibility to make this 
        service credit purchase which is required by the executive 
        director of the Minneapolis teachers retirement fund association.
           (e) Allowable service credit for the purchase periods must 
        be granted by the Minneapolis teachers retirement fund 
        association to the account of the eligible person upon receipt 
        of the prior service credit purchase payment amount. 
           (f) A service credit purchase is not authorized for any 
        portion of the April 23, 1980, to September 28, 1992, period for 
        which the eligible individual signed an independent contract 
        which waives pension coverage by the Minneapolis teachers 
        retirement fund association for the period covered by the 
        contract, or for any period for which administrators for special 
        school district No. 1 (Minneapolis) or the Minneapolis teachers 
        retirement fund association determine that the individual was 
        serving as an independent contractor. 
           Sec. 9.  [MERF; PRIOR SERVICE CREDIT PURCHASE FOR TEMPORARY 
        EMPLOYMENT PERIOD.] 
           (a) An eligible person described in paragraph (b) is 
        entitled to purchase allowable service credit from the 
        Minneapolis employees retirement fund for the period of 
        temporary employment specified in paragraph (c) by making the 
        payment required under Minnesota Statutes, section 356.55. 
           (b) An eligible person is a person who: 
           (1) was born on August 15, 1951; 
           (2) was hired by the city of Minneapolis as a maintenance 
        worker/truck driver on June 1, 1976, and was covered by the 
        Minneapolis employees retirement fund for that employment; and 
           (3) is currently employed by the city of Minneapolis and 
        covered by the Minneapolis employees retirement association. 
           (c) The period for allowable service credit purchase is a 
        period during 1975 during which the eligible person was employed 
        by the city of Minneapolis as a temporary employee. 
           (d) An eligible person must provide any relevant 
        documentation related to eligibility to make this service credit 
        purchase required by the executive director of the Minneapolis 
        employees retirement fund. 
           (e) Allowable service credit for the purchase periods must 
        be granted by the Minneapolis employees retirement fund to the 
        account of the eligible person upon receipt of the prior service 
        credit purchase payment amount.  To receive the service credit, 
        the service credit purchase must be received by the Minneapolis 
        employees retirement fund by October 1, 2001, or prior to 
        retirement, whichever is earlier. 
           Sec. 10.  [MERF; PRIOR SERVICE CREDIT PURCHASE FOR 
        TEMPORARY EMPLOYMENT PERIOD.] 
           (a) An eligible person described in paragraph (b) is 
        entitled to purchase allowable service credit from the 
        Minneapolis employees retirement fund for the period or periods 
        of temporary employment specified in paragraph (c) by making the 
        payment required under Minnesota Statutes, section 356.55. 
           (b) An eligible person is a person who: 
           (1) was born on December 17, 1953; 
           (2) was hired by the city of Minneapolis as a full-time 
        maintenance worker on February 2, 1974, and was covered by the 
        Minneapolis employees retirement fund for that employment; and 
           (3) is currently employed by the city of Minneapolis, 
        covered by the Minneapolis employees retirement association. 
           (c) The periods for allowable service credit purchase are 
        periods during 1974 and 1975 during which the eligible person 
        was employed by the city of Minneapolis as a temporary employee. 
           (d) An eligible person must provide any relevant 
        documentation related to eligibility to make this service credit 
        purchase required by the executive director of the Minneapolis 
        employees retirement fund. 
           (e) Allowable service credit for the purchase periods must 
        be granted by the Minneapolis employees retirement fund to the 
        account of the eligible person upon receipt of the prior service 
        credit purchase payment amount.  To receive the service credit, 
        the service credit purchase must be received by the Minneapolis 
        employees retirement fund by October 1, 2001, or prior to 
        retirement, whichever is earlier. 
           Sec. 11.  [EFFECTIVE DATE.] 
           (a) Sections 1, 2, and 4 to 10 are effective on the day 
        following final enactment. 
           (b) Section 3 is effective on the day after the date on 
        which the Dakota county board of commissioners and the chief 
        clerical officer of Dakota county complete, in a timely manner, 
        their compliance with Minnesota Statutes, section 645.021, 
        subdivisions 2 and 3. 
           (c) Section 1 expires, if not utilized, on December 31, 
        2000. 
           Presented to the governor May 11, 2000 
           Signed by the governor May 15, 2000, 10:56 a.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569