1.1                          A bill for an act 
  1.2             relating to retirement; various statewide and local 
  1.3             pension plans; providing special benefit coverage for 
  1.4             privatized employees of the Luverne public hospital 
  1.5             and the Waconia Ridgeview medical center; providing an 
  1.6             ad hoc postretirement adjustment to Eveleth police and 
  1.7             fire trust fund benefit recipients; establishing an 
  1.8             additional postretirement adjustment for the Fairmont 
  1.9             police relief association; extending survivor benefit 
  1.10            provisions to include certain Fairmont police relief 
  1.11            association survivors; providing a special ad hoc 
  1.12            postretirement adjustment to certain retired St. Cloud 
  1.13            police officers; authorizing the purchase of credit 
  1.14            for certain periods of prior military service, 
  1.15            out-of-state public school teaching service, maternity 
  1.16            leaves, maternity breaks in employment, parochial and 
  1.17            private school teaching service, Peace Corps service, 
  1.18            VISTA service, and charter school teaching service; 
  1.19            authorizing service credit purchases by certain plan 
  1.20            members; authorizing the designation of a supplemental 
  1.21            needs trust as an optional annuity form beneficiary; 
  1.22            repealing the 30-year service maximum for monthly 
  1.23            benefit volunteer firefighter relief associations; 
  1.24            amending Minnesota Statutes 1998, section 356.55, 
  1.25            subdivisions 1 and 6; Laws 1977, chapter 61, section 
  1.26            6, as amended; proposing coding for new law in 
  1.27            Minnesota Statutes, chapters 354; 354A; and 356; 
  1.28            repealing Minnesota Statutes 1998, section 424A.02, 
  1.29            subdivision 5; Laws 1998, chapter 390, article 1, 
  1.30            section 1. 
  1.31  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.32                             ARTICLE 1
  1.33               LUVERNE PUBLIC HOSPITAL PRIVATIZATION
  1.34     Section 1.  [LUVERNE COMMUNITY HOSPITAL EMPLOYEE 
  1.35  PRIVATIZATION PENSION BENEFIT ACCOMMODATION; PURPOSE.] 
  1.36     The purpose of this act is to ensure, to the extent 
  1.37  possible, that persons employed at the Luverne community 
  1.38  hospital will be entitled to receive future retirement benefits 
  2.1   under the general employees retirement plan of the public 
  2.2   employees retirement association that are commensurate with the 
  2.3   prior contributions made by them or on their behalf upon the 
  2.4   privatization of the Luverne community hospital. 
  2.5      Sec. 2.  [DEFINITIONS.] 
  2.6      Subdivision 1.  [GENERALLY.] As used in this act, unless 
  2.7   the context clearly indicates otherwise, each of the terms in 
  2.8   the following subdivisions has the meaning indicated. 
  2.9      Subd. 2.  [ALLOWABLE SERVICE.] "Allowable service" has the 
  2.10  meaning provided in Minnesota Statutes 1998, section 353.01, 
  2.11  subdivision 16. 
  2.12     Subd. 3.  [EFFECTIVE DATE.] "Effective date" means the date 
  2.13  that the operation of the Luverne community hospital is assumed 
  2.14  by another employer or the date that the Luverne community 
  2.15  hospital is purchased by another employer and, in either event, 
  2.16  active membership in the public employees retirement association 
  2.17  consequently terminates. 
  2.18     Subd. 4.  [TERMINATED HOSPITAL EMPLOYEE.] "Terminated 
  2.19  hospital employee" means a person who: 
  2.20     (1) was employed on the day before the effective date by 
  2.21  the Luverne community hospital; 
  2.22     (2) terminated employment with the Luverne community 
  2.23  hospital on the day before the effective date; and 
  2.24     (3) was a participant in the general employees retirement 
  2.25  plan of the public employees retirement association at the time 
  2.26  of termination of employment with the Luverne community hospital.
  2.27     Subd. 5.  [YEARS OF ALLOWABLE SERVICE.] "Years of allowable 
  2.28  service" means the total number of years of allowable service to 
  2.29  the credit of a terminated hospital employee under Minnesota 
  2.30  Statutes 1998, section 353.01, subdivision 18. 
  2.31     Sec. 3.  [VESTING RULE FOR CERTAIN EMPLOYEES.] 
  2.32     Notwithstanding any provision of Minnesota Statutes, 
  2.33  chapter 353, to the contrary, a terminated hospital employee is 
  2.34  eligible to receive a retirement annuity under Minnesota 
  2.35  Statutes 1998, section 353.29, without regard to the requirement 
  2.36  of three years of allowable service credit. 
  3.1      Sec. 4.  [AUGMENTATION INTEREST RATE FOR TERMINATED 
  3.2   HOSPITAL EMPLOYEES.] 
  3.3      The deferred annuity of a terminated hospital employee is 
  3.4   subject to augmentation in accordance with Minnesota Statutes 
  3.5   1998, section 353.71, subdivision 2, except that the rate of 
  3.6   interest for this purpose is 5.5 percent compounded annually 
  3.7   until January 1 following the year in which such person attains 
  3.8   age 55.  From that date to the effective date of retirement, the 
  3.9   rate is 7.5 percent.  These increased augmentation rates are no 
  3.10  longer applicable for any time after the terminated hospital 
  3.11  employee becomes covered again by a retirement fund enumerated 
  3.12  in Minnesota Statutes, section 356.30, subdivision 3.  These 
  3.13  increased deferred annuity augmentation rates do not apply to a 
  3.14  terminated transferred hospital employee who begins receipt of a 
  3.15  retirement annuity while employed by the employer which assumed 
  3.16  operations of the Luverne community hospital or purchased the 
  3.17  Luverne community hospital. 
  3.18     Sec. 5.  [AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE 
  3.19  FOR CERTAIN EARLY RETIREMENT PURPOSES.] 
  3.20     For the purpose of determining eligibility for early 
  3.21  retirement benefits provided under Minnesota Statutes 1998, 
  3.22  section 353.30, subdivision 1a, only and notwithstanding any 
  3.23  provision of Minnesota Statutes, chapter 353, to the contrary, 
  3.24  the years of allowable service for a terminated hospital 
  3.25  employee who transfers employment on the effective date and does 
  3.26  not apply for a refund of contributions under Minnesota Statutes 
  3.27  1998, section 353.34, subdivision 1, or any similar provision in 
  3.28  future Minnesota Statutes, includes service with the successor 
  3.29  employer to the Luverne community hospital following the 
  3.30  effective date.  The successor employer shall provide any 
  3.31  reports that the executive director of the public employees 
  3.32  retirement association may reasonably request to permit the 
  3.33  calculation of retirement benefits.  
  3.34     To be eligible for early retirement benefits under this 
  3.35  section, the individual must separate from service with the 
  3.36  successor employer to the Luverne community hospital.  The 
  4.1   terminated eligible individual, or an individual authorized to 
  4.2   act on behalf of that individual, may apply for an annuity 
  4.3   following the application procedures under Minnesota Statutes, 
  4.4   section 353.29, subdivision 4. 
  4.5      Sec. 6.  [APPLICATION OF REEMPLOYED ANNUITANT EARNINGS 
  4.6   LIMITATIONS.] 
  4.7      The reemployed annuitant earnings limitations of Minnesota 
  4.8   Statutes, section 353.37, apply to any service by a terminated 
  4.9   hospital employee as an employee of the successor employer to 
  4.10  the Luverne community hospital. 
  4.11     Sec. 7.  [EFFECT ON REFUND.] 
  4.12     Notwithstanding any provision of Minnesota Statutes, 
  4.13  chapter 353, to the contrary, terminated hospital employees may 
  4.14  receive a refund of employee accumulated contributions plus 
  4.15  interest at the rate of six percent per year compounded annually 
  4.16  in accordance with Minnesota Statutes 1998, section 353.34, 
  4.17  subdivision 2, at any time after the transfer of employment to 
  4.18  the successor employer to the Luverne community hospital.  If a 
  4.19  terminated hospital employee has received a refund from a 
  4.20  pension plan enumerated in Minnesota Statutes, section 356.30, 
  4.21  subdivision 3, the person may not repay that refund unless the 
  4.22  person again becomes a member of one of those enumerated plans 
  4.23  and complies with Minnesota Statutes, section 356.30, 
  4.24  subdivision 2. 
  4.25     Sec. 8.  [COUNSELING SERVICES.] 
  4.26     The administrator of the Luverne community hospital and the 
  4.27  executive director of the public employees retirement 
  4.28  association shall provide terminated hospital employees with 
  4.29  counseling on their benefits available under the general 
  4.30  employee retirement plan of the public employee retirement 
  4.31  association. 
  4.32     Sec. 9.  [REPEALER.] 
  4.33     Laws 1998, chapter 390, article 1, section 1, is repealed. 
  4.34     Sec. 10.  [EFFECTIVE DATE.] 
  4.35     Sections 1 to 9 are effective on the day following final 
  4.36  enactment. 
  5.1                              ARTICLE 2 
  5.2                   WACONIA RIDGEVIEW MEDICAL CENTER 
  5.3                            PRIVATIZATION
  5.4      Section 1.  [RIDGEVIEW MEDICAL CENTER EMPLOYEE 
  5.5   PRIVATIZATION PENSION BENEFIT ACCOMMODATION; PURPOSE.] 
  5.6      The purpose of this act is to ensure, to the extent 
  5.7   possible, that persons employed at the Ridgeview medical center, 
  5.8   Waconia, will be entitled to receive future retirement benefits 
  5.9   under the general employees retirement plan of the public 
  5.10  employees retirement association that are commensurate with the 
  5.11  prior contributions made by them or on their behalf upon the 
  5.12  privatization of the Ridgeview medical center. 
  5.13     Sec. 2.  [DEFINITIONS.] 
  5.14     Subdivision 1.  [GENERALLY.] As used in this act, unless 
  5.15  the context clearly indicates otherwise, each of the terms in 
  5.16  the following subdivisions has the meaning indicated. 
  5.17     Subd. 2.  [ALLOWABLE SERVICE.] "Allowable service" has the 
  5.18  meaning provided in Minnesota Statutes 1998, section 353.01, 
  5.19  subdivision 16. 
  5.20     Subd. 3.  [EFFECTIVE DATE.] "Effective date" means the date 
  5.21  that the operation of the Ridgeview medical center is assumed by 
  5.22  another employer or the date that the Ridgeview medical center 
  5.23  is purchased by another employer and, in either event, active 
  5.24  membership in the public employees retirement association 
  5.25  consequently terminates. 
  5.26     Subd. 4.  [TERMINATED HOSPITAL EMPLOYEE.] "Terminated 
  5.27  hospital employee" means a person who: 
  5.28     (1) was employed on the day before the effective date by 
  5.29  the Ridgeview medical center; 
  5.30     (2) terminated employment with the Ridgeview medical center 
  5.31  on the day before the effective date; and 
  5.32     (3) was a participant in the general employees retirement 
  5.33  plan of the public employees retirement association at the time 
  5.34  of termination of employment with the Ridgeview medical center. 
  5.35     Subd. 5.  [YEARS OF ALLOWABLE SERVICE.] "Years of allowable 
  5.36  service" means the total number of years of allowable service to 
  6.1   the credit of a terminated hospital employee under Minnesota 
  6.2   Statutes 1998, section 353.01, subdivision 18. 
  6.3      Sec. 3.  [VESTING RULE FOR CERTAIN EMPLOYEES.] 
  6.4      Notwithstanding any provision of Minnesota Statutes, 
  6.5   chapter 353, to the contrary, a terminated hospital employee is 
  6.6   eligible to receive a retirement annuity under Minnesota 
  6.7   Statutes 1998, section 353.29, without regard to the requirement 
  6.8   of three years of allowable service credit. 
  6.9      Sec. 4.  [AUGMENTATION INTEREST RATE FOR TERMINATED 
  6.10  HOSPITAL EMPLOYEES.] 
  6.11     The deferred annuity of a terminated hospital employee is 
  6.12  subject to augmentation in accordance with Minnesota Statutes 
  6.13  1998, section 353.71, subdivision 2, except that the rate of 
  6.14  interest for this purpose is 5.5 percent compounded annually 
  6.15  until January 1 following the year in which such person attains 
  6.16  age 55.  From that date to the effective date of retirement, the 
  6.17  rate is 7.5 percent.  These increased augmentation rates are no 
  6.18  longer applicable for any time after the terminated hospital 
  6.19  employee becomes covered again by a retirement fund enumerated 
  6.20  in Minnesota Statutes, section 356.30, subdivision 3.  These 
  6.21  increased deferred annuity augmentation rates do not apply to a 
  6.22  terminated transferred hospital employee who begins receipt of a 
  6.23  retirement annuity while employed by the employer who assumed 
  6.24  operations of the Ridgeview medical center or purchased the 
  6.25  Ridgeview medical center. 
  6.26     Sec. 5.  [AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE 
  6.27  FOR CERTAIN EARLY RETIREMENT PURPOSES.] 
  6.28     For the purpose of determining eligibility for early 
  6.29  retirement benefits provided under Minnesota Statutes 1998, 
  6.30  section 353.30, subdivision 1a, only and notwithstanding any 
  6.31  provision of Minnesota Statutes, chapter 353, to the contrary, 
  6.32  the years of allowable service for a terminated hospital 
  6.33  employee who transfers employment on the effective date and does 
  6.34  not apply for a refund of contributions under Minnesota Statutes 
  6.35  1998, section 353.34, subdivision 1, or any similar provision in 
  6.36  future Minnesota Statutes, includes service with the successor 
  7.1   employer to the Ridgeview medical center following the effective 
  7.2   date.  The successor employer shall provide any reports that the 
  7.3   executive director of the public employees retirement 
  7.4   association may reasonably request to permit the calculation of 
  7.5   retirement benefits.  
  7.6      To be eligible for early retirement benefits under this 
  7.7   section, the individual must separate from service with the 
  7.8   successor employer to the Ridgeview medical center.  The 
  7.9   terminated eligible individual, or an individual authorized to 
  7.10  act on behalf of that individual, may apply for an annuity 
  7.11  following the application procedures under Minnesota Statutes, 
  7.12  section 353.29, subdivision 4. 
  7.13     Sec. 6.  [APPLICATION OF REEMPLOYED ANNUITANT EARNINGS 
  7.14  LIMITATIONS.] 
  7.15     The reemployed annuitant earnings limitations of Minnesota 
  7.16  Statutes, section 353.37, apply to any service by a terminated 
  7.17  hospital employee as an employee of the successor employer to 
  7.18  the Ridgeview medical center. 
  7.19     Sec. 7.  [EFFECT ON REFUND.] 
  7.20     Notwithstanding any provision of Minnesota Statutes, 
  7.21  chapter 353, to the contrary, terminated hospital employees may 
  7.22  receive a refund of employee accumulated contributions plus 
  7.23  interest at the rate of six percent per year compounded annually 
  7.24  in accordance with Minnesota Statutes 1998, section 353.34, 
  7.25  subdivision 2, at any time after the transfer of employment to 
  7.26  the successor employer to the Ridgeview medical center.  If a 
  7.27  terminated hospital employee has received a refund from a 
  7.28  pension plan enumerated in Minnesota Statutes, section 356.30, 
  7.29  subdivision 3, the person may not repay that refund unless the 
  7.30  person again becomes a member of one of those enumerated plans 
  7.31  and complies with Minnesota Statutes, section 356.30, 
  7.32  subdivision 2. 
  7.33     Sec. 8.  [COUNSELING SERVICES.] 
  7.34     The administrator of the Ridgeview medical center and the 
  7.35  executive director of the public employees retirement 
  7.36  association shall provide terminated hospital employees with 
  8.1   counseling on their benefits available under the general 
  8.2   employee retirement plan of the public employee retirement 
  8.3   association. 
  8.4      Sec. 9.  [EFFECTIVE DATE.] 
  8.5      Sections 1 to 8 are effective on the day following final 
  8.6   enactment. 
  8.7                              ARTICLE 3 
  8.8                  LOCAL POLICE AND PAID FIRE RELIEF 
  8.9                  ASSOCIATION BENEFIT MODIFICATIONS
  8.10     Section 1.  Laws 1977, chapter 61, section 6, as amended by 
  8.11  Laws 1981, chapter 68, section 39, and Laws 1998, chapter 390, 
  8.12  article 7, section 3, is amended to read: 
  8.13     Sec. 6.  [EVELETH RETIRED POLICE AND FIRE TRUST FUND; 
  8.14  FINANCIAL REQUIREMENTS OF THE TRUST FUND.] 
  8.15     (a) The city of Eveleth shall provide by annual levy amount 
  8.16  sufficient to pay an amount which when added to the investment 
  8.17  income of the trust fund is sufficient to pay the benefits 
  8.18  provided under the trust fund for the succeeding year as 
  8.19  certified by the board of trustees of the trust fund. 
  8.20     (b) If the city of Eveleth fails to contribute the amount 
  8.21  required in paragraph (a) in a given year, no postretirement 
  8.22  adjustment granted under Laws 1995, chapter 262, article 10, 
  8.23  section 1, or Laws 1997, chapter 241, article 2, section 19 is 
  8.24  payable in the following year. 
  8.25     Sec. 2.  [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 
  8.26  HOC POSTRETIREMENT ADJUSTMENT.] 
  8.27     In addition to the current pensions and other retirement 
  8.28  benefits payable, the pensions and retirement benefits payable 
  8.29  to retired police officers and firefighters and their surviving 
  8.30  spouses by the Eveleth police and fire trust fund are increased 
  8.31  by $100 a month.  Increases are retroactive to January 1, 1999. 
  8.32     Sec. 3.  [FAIRMONT POLICE RELIEF ASSOCIATION; ADDITIONAL 
  8.33  ANNUAL POSTRETIREMENT ADJUSTMENT.] 
  8.34     (a) Every recipient of a pension or benefit from the 
  8.35  Fairmont police relief association on June 30, annually, is 
  8.36  entitled to receive a postretirement adjustment as provided in 
  9.1   this section in addition to any pension or benefit increase by 
  9.2   virtue of an increase in the salary of active patrol officers in 
  9.3   the city of Fairmont on the following July 1. 
  9.4      (b) If the value of current assets of the relief 
  9.5   association is equal to at least 102 percent of the actuarial 
  9.6   accrued liability of the Fairmont police relief association as 
  9.7   of December 31 in the prior calendar year as calculated under 
  9.8   Minnesota Statutes, sections 356.215 and 356.216, one percent of 
  9.9   the value of current assets of the relief association is 
  9.10  available for the payment of the postretirement adjustment. 
  9.11     (c) The amount of the postretirement adjustment must be 
  9.12  calculated by the board of trustees of the relief association.  
  9.13  The postretirement adjustment amount is payable monthly.  The 
  9.14  total amount of all service pensions, disability pensions, and 
  9.15  survivor benefits, without inclusion of any postretirement 
  9.16  adjustment paid previously under this section, must be 
  9.17  calculated and the percentage amount of each recipient's annual 
  9.18  pension or benefit of the total amount, expressed as four digits 
  9.19  beyond the decimal point, must be determined.  The monthly 
  9.20  postretirement adjustment payable to each pension or benefit 
  9.21  recipient is one-twelfth of the dollar amount determined by 
  9.22  applying each recipient's determined percentage of the total 
  9.23  amount of pensions and benefits to the total dollar amount 
  9.24  available for payment as a postretirement adjustment. 
  9.25     (d) The postretirement adjustment amount paid in any year 
  9.26  under this section does not compound and must not be added to 
  9.27  the pension base for the calculation of a subsequent 
  9.28  postretirement adjustment.  If a pension or benefit recipient 
  9.29  dies before the 12 monthly postretirement adjustments under this 
  9.30  section have been paid, the remaining monthly postretirement 
  9.31  adjustment payments cancel and nothing in this section 
  9.32  authorizes the payment of the postretirement adjustment to an 
  9.33  estate or to a person who did not qualify for a postretirement 
  9.34  adjustment in the person's own right. 
  9.35     (e) The secretary of the relief association will report the 
  9.36  total amount of benefits paid under this section to the 
 10.1   executive director of the legislative commission on pensions and 
 10.2   retirement, the city clerk, and the state auditor. 
 10.3      (f) Payment of the postretirement adjustment amount 
 10.4   provided under this section may be made only if the average 
 10.5   time-weighted total rate of return for the total portfolio for 
 10.6   the most recent five-year period exceeds by at least two percent 
 10.7   the actual average percent increase in the current monthly 
 10.8   salary of a first class patrol officer in the most recent prior 
 10.9   five fiscal years. 
 10.10     Sec. 4.  [FAIRMONT POLICE RELIEF ASSOCIATION; RETROACTIVITY 
 10.11  OF SURVIVING SPOUSE BENEFIT INCREASE.] 
 10.12     The surviving spouse benefit amount under Laws 1963, 
 10.13  chapter 423, is payable to all surviving spouses receiving 
 10.14  benefits as of the date of the approval of this act. 
 10.15     Sec. 5.  [FAIRMONT POLICE RELIEF ASSOCIATION; BYLAWS 
 10.16  AMENDMENTS REQUIRED.] 
 10.17     Sections 3 and 4 must be implemented by the appropriate 
 10.18  amendments to the bylaws of the Fairmont police relief 
 10.19  association. 
 10.20     Sec. 6.  [ST. CLOUD POLICE CONSOLIDATION ACCOUNT; SPECIAL 
 10.21  ONE-TIME POSTRETIREMENT ADJUSTMENT.] 
 10.22     (a) Notwithstanding any provision of general or special law 
 10.23  to the contrary, all service pensioners, disability pensioners, 
 10.24  and survivor benefit recipients of the St. Cloud police 
 10.25  consolidation account who had begun the receipt of pensions or 
 10.26  benefits before December 31, 1997, the effective date of the St. 
 10.27  Cloud police consolidation process under Minnesota Statutes, 
 10.28  chapter 353A, that began in April 1997, are entitled to receive 
 10.29  the pension or benefit increase granted under Laws 1997, chapter 
 10.30  233, article 1, section 72. 
 10.31     (b) The special one-time postretirement adjustment under 
 10.32  paragraph (a) is effective retroactive to January 1, 1998.  The 
 10.33  first payment of pensions and benefits next following the 
 10.34  effective date of this section must include any back payments of 
 10.35  the retroactive postretirement adjustment. 
 10.36     (c) Nothing in this section authorizes the payment of a 
 11.1   special postretirement adjustment to an estate. 
 11.2      Sec. 7. [EFFECTIVE DATE.] 
 11.3      (a) Sections 1 and 2 are effective on approval by the 
 11.4   Eveleth city council and compliance with Minnesota Statutes, 
 11.5   section 645.021. 
 11.6      (b) Sections 3, 4, and 5 are effective on the day following 
 11.7   approval by the Fairmont city council and compliance with 
 11.8   Minnesota Statutes, section 645.021. 
 11.9      (c) Section 6 is effective on the day following approval by 
 11.10  the St. Cloud city council and compliance with Minnesota 
 11.11  Statutes, section 645.021. 
 11.12                             ARTICLE 4  
 11.13                      TEACHER RETIREMENT PLANS  
 11.14                   PRIOR SERVICE CREDIT PURCHASE  
 11.15                           AUTHORIZATION  
 11.16     Section 1.  [354.533] [PRIOR OR UNCREDITED MILITARY SERVICE 
 11.17  CREDIT PURCHASE.] 
 11.18     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 11.19  teacher who has at least three years of allowable service credit 
 11.20  with the teachers retirement association and who performed 
 11.21  service in the United States armed forces before becoming a 
 11.22  teacher as defined in section 354.05, subdivision 2, or who 
 11.23  failed to obtain service credit for a military leave of absence 
 11.24  under the provisions of section 354.53, is entitled to purchase 
 11.25  allowable and formula service credit for the initial period of 
 11.26  enlistment, induction, or call to active duty without any 
 11.27  voluntary extension by making payment under section 356.55, 
 11.28  provided the teacher is not entitled to receive a current or 
 11.29  deferred retirement annuity from a United States armed forces 
 11.30  pension plan and has not purchased service credit from any other 
 11.31  defined benefit public employee pension plan for the same period 
 11.32  of service. 
 11.33     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 11.34  desires to purchase service credit under subdivision 1 must 
 11.35  apply with the executive director to make the purchase.  The 
 11.36  application must include all necessary documentation of the 
 12.1   teacher's qualifications to make the purchase, signed written 
 12.2   permission to allow the executive director to request and 
 12.3   receive necessary verification of applicable facts and 
 12.4   eligibility requirements, and any other relevant information 
 12.5   that the executive director may require. 
 12.6      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
 12.7   service credit for the purchase period must be granted by the 
 12.8   teachers retirement association to the purchasing teacher upon 
 12.9   receipt of the purchase payment amount. 
 12.10     Sec. 2.  [354.534] [PRIOR OUT-OF-STATE TEACHING SERVICE 
 12.11  CREDIT PURCHASE.] 
 12.12     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 12.13  teacher who has at least three years of allowable service credit 
 12.14  with the teachers retirement association is entitled to purchase 
 12.15  up to ten years of allowable and formula service credit for 
 12.16  out-of-state teaching service by making payment under section 
 12.17  356.55, provided the out-of-state teaching service was performed 
 12.18  for an educational institution established and operated by 
 12.19  another state, governmental subdivision of another state, or the 
 12.20  federal government, and the teacher is not entitled to receive a 
 12.21  current or deferred age and service retirement annuity or 
 12.22  disability benefit and has not purchased service credit from 
 12.23  another defined benefit public employee pension plan for that 
 12.24  out-of-state teaching service. 
 12.25     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 12.26  desires to purchase service credit under subdivision 1 must 
 12.27  apply with the executive director to make the purchase.  The 
 12.28  application must include all necessary documentation of the 
 12.29  teacher's qualifications to make the purchase, signed written 
 12.30  permission to allow the executive director to request and 
 12.31  receive necessary verification of applicable facts and 
 12.32  eligibility requirements, and any other relevant information 
 12.33  that the executive director may require. 
 12.34     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
 12.35  service credit for the purchase period must be granted by the 
 12.36  teachers retirement association to the purchasing teacher on 
 13.1   receipt of the purchase payment amount. 
 13.2      Sec. 3.  [354.535] [MATERNITY LEAVE OF ABSENCE AND BREAKS 
 13.3   IN SERVICE PURCHASES.] 
 13.4      Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 13.5   teacher who has at least three years of allowable service credit 
 13.6   with the teachers retirement association and who was granted a 
 13.7   maternity leave of absence by a school district or other 
 13.8   employing unit covered by the teachers retirement association 
 13.9   for which the teacher did not previously receive allowable and 
 13.10  formula service credit, or who had a maternity break in teaching 
 13.11  service for which the teacher did not receive or purchase 
 13.12  service credit from another defined benefit public employee 
 13.13  pension plan, is entitled to purchase the actual period of the 
 13.14  leave or of the break in teaching service, up to five years, of 
 13.15  allowable and formula service credit for applicable maternity 
 13.16  leaves of absence or applicable maternity break in teaching 
 13.17  service periods by making payment under section 356.55. 
 13.18     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 13.19  desires to purchase service credit under subdivision 1 must 
 13.20  apply with the executive director to make the purchase.  The 
 13.21  application must include all necessary documentation of the 
 13.22  teacher's qualifications to make the purchase, signed written 
 13.23  permission to allow the executive director to request and 
 13.24  receive necessary verification of applicable facts and 
 13.25  eligibility requirements, and any other relevant information 
 13.26  that the executive director may require. 
 13.27     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
 13.28  service credit for the purchase period must be granted by the 
 13.29  teachers retirement association to the purchasing teacher on 
 13.30  receipt of the purchase payment amount. 
 13.31     Sec. 4.  [354.536] [PRIVATE OR PAROCHIAL TEACHING SERVICE 
 13.32  CREDIT PURCHASE.] 
 13.33     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 13.34  teacher who has at least three years of allowable service credit 
 13.35  with the teachers retirement association is entitled to purchase 
 13.36  up to ten years of allowable and formula service credit for 
 14.1   private or parochial school teaching service by making payment 
 14.2   under section 356.55, provided that the teacher is not entitled 
 14.3   to receive a current or deferred age and service retirement 
 14.4   annuity or disability benefit from the applicable 
 14.5   employer-sponsored pension plan and has not purchased service 
 14.6   credit from the applicable defined benefit employer sponsored 
 14.7   pension plan for that service. 
 14.8      Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 14.9   desires to purchase service credit under subdivision 1 must 
 14.10  apply with the executive director to make the purchase.  The 
 14.11  application must include all necessary documentation of the 
 14.12  teacher's qualifications to make the purchase, signed written 
 14.13  permission to allow the executive director to request and 
 14.14  receive necessary verification of applicable facts and 
 14.15  eligibility requirements, and any other relevant information 
 14.16  that the executive director may require. 
 14.17     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
 14.18  service credit for the purchase period must be granted by the 
 14.19  teachers retirement association to the purchasing teacher on 
 14.20  receipt of the purchase payment amount. 
 14.21     Sec. 5.  [354.537] [PEACE CORPS OR VISTA SERVICE CREDIT 
 14.22  PURCHASE.] 
 14.23     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 14.24  teacher who has at least three years of allowable service credit 
 14.25  with the teachers retirement association is entitled to purchase 
 14.26  up to ten years of allowable and formula service credit for 
 14.27  service rendered in the federal Peace Corps program or in the 
 14.28  federal Volunteers in Service to America program by making 
 14.29  payment under section 356.55, provided that the teacher has not 
 14.30  purchased service credit from any defined benefit pension plan 
 14.31  for that service. 
 14.32     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 14.33  desires to purchase service credit under subdivision 1 must 
 14.34  apply with the executive director to make the purchase.  The 
 14.35  application must include all necessary documentation of the 
 14.36  teacher's qualifications to make the purchase, signed written 
 15.1   permission to allow the executive director to request and 
 15.2   receive necessary verification of applicable facts and 
 15.3   eligibility requirements, and any other relevant information 
 15.4   that the executive director may require. 
 15.5      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
 15.6   service credit for the purchase period must be granted by the 
 15.7   teachers retirement association to the purchasing teacher on 
 15.8   receipt of the purchase payment amount. 
 15.9      Sec. 6.  [354.538] [CHARTER SCHOOL TEACHING SERVICE CREDIT 
 15.10  PURCHASE.] 
 15.11     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 15.12  teacher who has at least three years of allowable service credit 
 15.13  with the teachers retirement association is entitled to purchase 
 15.14  up to ten years of allowable and formula service credit for 
 15.15  charter school teaching service by making payment under section 
 15.16  356.55, provided that the teacher is not entitled to receive a 
 15.17  current or deferred age and service retirement annuity or 
 15.18  disability benefit from the applicable employer-sponsored 
 15.19  pension plan and has not purchased service credit from the 
 15.20  applicable defined benefit employer-sponsored pension plan for 
 15.21  that service. 
 15.22     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 15.23  desires to purchase service credit under subdivision 1 must 
 15.24  apply with the executive director to make the purchase.  The 
 15.25  application must include all necessary documentation of the 
 15.26  teacher's qualifications to make the purchase, signed written 
 15.27  permission to allow the executive director to request and 
 15.28  receive necessary verification of applicable facts and 
 15.29  eligibility requirements, and any other relevant information 
 15.30  that the executive director may require. 
 15.31     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
 15.32  service credit for the purchase period must be granted by the 
 15.33  teachers retirement association to the purchasing teacher on 
 15.34  receipt of the purchase payment amount. 
 15.35     Sec. 7.  [354A.097] [PRIOR OR UNCREDITED MILITARY SERVICE 
 15.36  CREDIT PURCHASE.] 
 16.1      Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 16.2   teacher who has at least three years of allowable service credit 
 16.3   with the teachers retirement fund association and who performed 
 16.4   service in the United States armed forces before becoming a 
 16.5   teacher as defined in section 354A.011, subdivision 27, or who 
 16.6   failed to obtain service credit for a military leave of absence 
 16.7   period under section 354A.093, is entitled to purchase allowable 
 16.8   service credit for the initial period of enlistment, induction, 
 16.9   or call to active duty without any voluntary extension by making 
 16.10  payment under section 356.55, provided the teacher is not 
 16.11  entitled to receive a current or deferred retirement annuity 
 16.12  from a United States armed forces pension plan and has not 
 16.13  purchased service credit from another defined benefit public 
 16.14  employee pension plan for the same period of service. 
 16.15     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 16.16  desires to purchase service credit under subdivision 1 must 
 16.17  apply with the executive director or secretary of the respective 
 16.18  teachers retirement fund association to make the purchase.  The 
 16.19  application must include all necessary documentation of the 
 16.20  teacher's qualifications to make the purchase, signed written 
 16.21  permission to allow the executive director or secretary to 
 16.22  request and receive necessary verification of applicable facts 
 16.23  and eligibility requirements, and any other relevant information 
 16.24  that the executive director or secretary may require. 
 16.25     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 16.26  for the purchase period must be granted by the applicable 
 16.27  teachers retirement fund association to the purchasing teacher 
 16.28  on receipt of the purchase payment amount. 
 16.29     Sec. 8.  [354A.098] [PRIOR OUT-OF-STATE TEACHING SERVICE 
 16.30  CREDIT PURCHASE.] 
 16.31     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 16.32  teacher who has at least three years of allowable service credit 
 16.33  with one of the retirement fund associations under this chapter 
 16.34  and who rendered out-of-state teaching service for an 
 16.35  educational institution established and operated by another 
 16.36  state, governmental subdivision of another state, or the federal 
 17.1   government, is entitled to purchase up to ten years of allowable 
 17.2   service credit for that out-of-state service by making payment 
 17.3   under section 356.55, provided the teacher is not entitled to 
 17.4   receive a current or deferred age and service retirement annuity 
 17.5   or disability benefit and has not purchased service credit from 
 17.6   another defined benefit public employee pension plan for that 
 17.7   out-of-state teaching service. 
 17.8      Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 17.9   desires to purchase service credit under subdivision 1 must 
 17.10  apply with the executive director or secretary of the respective 
 17.11  teachers retirement fund association to make the purchase.  The 
 17.12  application must include all necessary documentation of the 
 17.13  teachers's qualifications to make the purchase, signed written 
 17.14  permission to allow the executive director or secretary to 
 17.15  request and receive necessary verification of applicable facts 
 17.16  and eligibility requirements, and any other relevant information 
 17.17  that the executive director or secretary may require. 
 17.18     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 17.19  for the purchase period must be granted by the applicable 
 17.20  teachers retirement fund association to the purchasing teacher 
 17.21  on receipt of the purchase payment amount. 
 17.22     Sec. 9.  [354A.099] [MATERNITY BREAK IN SERVICE OR LEAVE 
 17.23  SERVICE CREDIT PURCHASE.] 
 17.24     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 17.25  teacher who has at least three years of allowable service credit 
 17.26  with the teachers retirement fund association and who was 
 17.27  granted a maternity leave of absence by a school district or 
 17.28  other employing unit covered by the teachers retirement 
 17.29  association for which the teacher did not previously receive 
 17.30  allowable service credit or who had a maternity break in 
 17.31  teaching service for which the teacher did not receive or 
 17.32  purchase service credit from another defined benefit public 
 17.33  employee pension plan is entitled to purchase the actual period 
 17.34  of the leave or of the break in teaching service, up to five 
 17.35  years, of allowable service credit for applicable maternity 
 17.36  leaves of absence or applicable maternity break in teaching 
 18.1   service periods by making payment under section 356.55. 
 18.2      Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 18.3   desires to purchase service credit under subdivision 1 must 
 18.4   apply with the executive director or secretary of the respective 
 18.5   retirement fund association to make the purchase.  The 
 18.6   application must include all necessary documentation of the 
 18.7   teacher's qualifications to make the purchase, signed written 
 18.8   permission to allow the executive director or secretary to 
 18.9   request and receive any necessary verification of applicable 
 18.10  facts and eligibility requirements, and any other relevant 
 18.11  information that the executive director or secretary may require.
 18.12     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 18.13  for the purchase period must be granted by the applicable 
 18.14  teachers retirement fund association to the purchasing teacher 
 18.15  on receipt of the purchase payment amount. 
 18.16     Sec. 10.  [354A.101] [PRIVATE OR PAROCHIAL TEACHING SERVICE 
 18.17  CREDIT PURCHASE.] 
 18.18     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 18.19  teacher who has at least three years of allowable service credit 
 18.20  with the teachers retirement fund association is entitled to 
 18.21  purchase up to ten years of allowable service credit for private 
 18.22  or parochial school teaching service by making payment under 
 18.23  section 356.55, provided that the teacher is not entitled to 
 18.24  receive a current or deferred age and service retirement annuity 
 18.25  or disability benefit from the applicable employer-sponsored 
 18.26  pension plan and has not purchased service credit from the 
 18.27  applicable defined benefit employer sponsored pension plan for 
 18.28  that service. 
 18.29     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 18.30  desires to purchase service credit under subdivision 1 must 
 18.31  apply with the executive director to make the purchase.  The 
 18.32  application must include all necessary documentation of the 
 18.33  teacher's qualifications to make the purchase, signed written 
 18.34  permission to allow the executive director to request and 
 18.35  receive necessary verification of applicable facts and 
 18.36  eligibility requirements, and any other relevant information 
 19.1   that the executive director may require. 
 19.2      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 19.3   for the purchase period must be granted by the teachers 
 19.4   retirement fund association to the purchasing teacher on receipt 
 19.5   of the purchase payment amount. 
 19.6      Sec. 11.  [354A.102] [PEACE CORPS OR VISTA SERVICE CREDIT 
 19.7   PURCHASE.] 
 19.8      Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 19.9   teacher who has at least three years of allowable service credit 
 19.10  with the teachers retirement fund association is entitled to 
 19.11  purchase up to ten years of allowable service credit for service 
 19.12  rendered in the federal Peace Corps program or in the federal 
 19.13  Volunteers in Service to America program by making payment under 
 19.14  section 356.53, provided that the teacher has not purchased 
 19.15  service credit from any defined benefit pension plan for that 
 19.16  service. 
 19.17     Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 19.18  desires to purchase service credit under subdivision 1 must 
 19.19  apply with the executive director to make the purchase.  The 
 19.20  application must include all necessary documentation of the 
 19.21  teacher's qualifications to make the purchase, signed written 
 19.22  permission to allow the executive director to request and 
 19.23  receive necessary verification of applicable facts and 
 19.24  eligibility requirements, and any other relevant information 
 19.25  that the executive director may require. 
 19.26     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 19.27  for the purchase period must be granted by the teachers 
 19.28  retirement fund association to the purchasing teacher on receipt 
 19.29  of the purchase payment amount. 
 19.30     Sec. 12.  [354A.103] [CHARTER SCHOOL TEACHING SERVICE 
 19.31  CREDIT PURCHASE.] 
 19.32     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZED.] A 
 19.33  teacher who has at least three years of allowable service credit 
 19.34  with the teachers retirement fund association is entitled to 
 19.35  purchase up to ten years of allowable service credit for charter 
 19.36  school teaching service by making payment under section 356.55, 
 20.1   provided that the teacher is not entitled to receive a current 
 20.2   or deferred age and service retirement annuity or disability 
 20.3   benefit from the applicable employer-sponsored pension plan and 
 20.4   has not purchased service credit from the applicable defined 
 20.5   benefit employer-sponsored pension plan for that service. 
 20.6      Subd. 2.  [APPLICATION AND DOCUMENTATION.] A teacher who 
 20.7   desires to purchase service credit under subdivision 1 must 
 20.8   apply with the executive director to make the purchase.  The 
 20.9   application must include all necessary documentation of the 
 20.10  teacher's qualifications to make the purchase, signed written 
 20.11  permission to allow the executive director to request and 
 20.12  receive necessary verification of applicable facts and 
 20.13  eligibility requirements, and any other relevant information 
 20.14  that the executive director may require. 
 20.15     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable service credit 
 20.16  for the purchase period must be granted by the teachers 
 20.17  retirement fund association to the purchasing teacher on receipt 
 20.18  of the purchase payment amount. 
 20.19     Sec. 13.  Minnesota Statutes 1998, section 356.55, 
 20.20  subdivision 1, is amended to read: 
 20.21     Subdivision 1.  [APPLICATION.] Unless the prior service 
 20.22  credit purchase authorization special law or general statute 
 20.23  provision explicitly specifies a different purchase payment 
 20.24  amount determination procedure, this section governs the 
 20.25  determination of the prior service credit purchase payment 
 20.26  amount of any prior service credit purchase.  The purchase 
 20.27  payment amount determination procedure must recognize any 
 20.28  service credit accrued to the purchaser in a pension plan listed 
 20.29  in section 356.30, subdivision 3.  Any service credit in a 
 20.30  Minnesota defined benefit public employee pension plan available 
 20.31  to be reinstated by the purchaser through the repayment of a 
 20.32  refund of member or employee contributions previously received 
 20.33  must be repaid in full before any purchase of prior service 
 20.34  credit payment is made under this section. 
 20.35     Sec. 14.  Minnesota Statutes 1998, section 356.55, 
 20.36  subdivision 6, is amended to read: 
 21.1      Subd. 6.  [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a) 
 21.2   As part of the regular data reporting to the consulting actuary 
 21.3   retained by the legislative commission on pensions and 
 21.4   retirement annually, the chief administrative officer of each 
 21.5   public pension plan that has accepted a prior service credit 
 21.6   purchase payment under this section shall report for any 
 21.7   purchase, the purchaser, the purchaser's employer, the age of 
 21.8   the purchaser, the period of the purchase, the purchaser's 
 21.9   prepurchase accrued service credit, the purchaser's postpurchase 
 21.10  accrued service credit, the purchaser's prior service credit 
 21.11  payment, the prior service credit payment made by the 
 21.12  purchaser's employer, and the amount of the additional benefit 
 21.13  or annuity purchased. 
 21.14     (b) As part of a supplemental report to the regular annual 
 21.15  actuarial valuation for the applicable public pension plan 
 21.16  prepared by the consulting actuary retained by the legislative 
 21.17  commission on pensions and retirement, there must be an exhibit 
 21.18  comparing a comparison for each purchase showing the total prior 
 21.19  service credit payment received from all sources and the 
 21.20  increased public pension plan actuarial accrued liability 
 21.21  resulting from each purchase. 
 21.22     Sec. 15.  [INSTRUCTION TO REVISOR.] 
 21.23     The revisor of statutes shall replace the current headnote 
 21.24  for Minnesota Statutes, section 354.53, with the headnote 
 21.25  "CREDIT FOR MILITARY SERVICE LEAVE OF ABSENCE." 
 21.26     Sec. 16.  [EFFECTIVE DATE.] 
 21.27     Sections 1 to 15 are effective May 16, 1999. 
 21.28                             ARTICLE 5
 21.29             INDIVIDUAL AND SMALL GROUP PENSION CHANGES
 21.30     Section 1.  [PURCHASE OF SERVICE CREDIT; PRIOR ST. PAUL 
 21.31  BUREAU OF HEALTH EMPLOYEE.] 
 21.32     (a) An eligible person, as described in paragraph (b), is 
 21.33  entitled to purchase coordinated service credit in the public 
 21.34  employees retirement association general plan for the period of 
 21.35  employment described in paragraph (b), clause (2), by making 
 21.36  payment as specified in paragraph (c). 
 22.1      (b) An eligible person is a person who: 
 22.2      (1) was born on May 22, 1932; 
 22.3      (2) was employed by the St. Paul bureau of health from 
 22.4   March 17, 1958, to September 21, 1962, was covered by the St. 
 22.5   Paul bureau of health relief association as a result of that 
 22.6   employment, and who forfeited all service credit in that relief 
 22.7   association upon leaving that employment; and 
 22.8      (3) later became a coordinated member of the general plan 
 22.9   of the public employees retirement association and currently is 
 22.10  a coordinated member of that plan. 
 22.11     (c) An eligible person described in paragraph (b) may 
 22.12  purchase service credit from the public employees retirement 
 22.13  association by paying the amount specified in Minnesota 
 22.14  Statutes, section 356.55, prior to termination of public 
 22.15  employees retirement association covered employment or prior to 
 22.16  January 1, 2000, whichever is earlier.  If the city of St. Paul 
 22.17  agrees to make a payment under Minnesota Statutes, section 
 22.18  356.55, subdivision 5, an eligible person must make the employee 
 22.19  payments prior to termination of public employees retirement 
 22.20  association covered employment or prior to January 1, 2000, 
 22.21  whichever is earlier.  If the employee payment is made in a 
 22.22  timely fashion, the city payment must be remitted 60 days 
 22.23  thereafter. 
 22.24     (d) An eligible person must provide any relevant 
 22.25  documentation required by the executive director to determine 
 22.26  eligibility for the prior service credit under this section. 
 22.27     (e) Service credit for the purchase period must be granted 
 22.28  by the public employees retirement association to the account of 
 22.29  the eligible person upon receipt of the purchase payment amount 
 22.30  specified in paragraph (c). 
 22.31     Sec. 2.  [INDEPENDENT SCHOOL DISTRICT NO. 276, MINNETONKA, 
 22.32  TEACHER.] 
 22.33     (a) Notwithstanding Minnesota Statutes, section 354.095, an 
 22.34  eligible person described in paragraph (b) is entitled to 
 22.35  purchase allowable and formula service credit in the teachers 
 22.36  retirement association for the period described in paragraph (c) 
 23.1   by paying the amount specified in Minnesota Statutes, section 
 23.2   356.55, subdivision 2. 
 23.3      (b) An eligible person is a person who: 
 23.4      (1) was on medical leave for a period that includes the 
 23.5   1994-1995 and the 1995-1996 school years; 
 23.6      (2) was employed by independent school district No. 276, 
 23.7   Minnetonka, during the period that the medical leave was taken; 
 23.8   and 
 23.9      (3) due to the failure of independent school district No. 
 23.10  276, Minnetonka, to file certain papers with the teachers 
 23.11  retirement association, was not able to obtain service credit 
 23.12  for the 1994-1995 and 1995-1996 school year portions of the 
 23.13  medical leave. 
 23.14     (c) The period for service credit purchase is the 1994-1995 
 23.15  and 1995-1996 school years. 
 23.16     (d) Notwithstanding Minnesota Statutes, section 356.55, 
 23.17  subdivision 5, the eligible person must pay, on or before 
 23.18  September 1, 1999, an amount equal to the employee, employer, 
 23.19  and employer additional contribution rates in effect during the 
 23.20  prior service period applied to the actual salary rates in 
 23.21  effect during the prior service period, plus annual compound 
 23.22  interest at the rate of 8.5 percent from the date on which the 
 23.23  contributions would have been made if made contemporaneous with 
 23.24  the service period to the date on which the payment is actually 
 23.25  made.  Independent school district No. 276, Minnetonka, must pay 
 23.26  one-half of the remaining balance of the prior service credit 
 23.27  purchase payment amount calculated under Minnesota Statutes, 
 23.28  section 356.55, within 30 days of the payment by the eligible 
 23.29  person.  Recognizing that the teachers retirement association 
 23.30  failed to provide adequate information on the opportunity of the 
 23.31  eligible person to make timely payments for the 1995-1996 school 
 23.32  year following receipt of the medical leave of absence forms on 
 23.33  August 16, 1996, the teachers retirement association is 
 23.34  responsible for one-half of the remaining balance of the prior 
 23.35  service credit purchase payment amount calculated under 
 23.36  Minnesota Statutes, section 356.55.  The executive director of 
 24.1   the teachers retirement association must notify the 
 24.2   superintendent of independent school district No. 276, 
 24.3   Minnetonka, of its payment amount and payment due date if the 
 24.4   eligible person makes the required payment. 
 24.5      (e) If independent school district No. 276, Minnetonka, 
 24.6   fails to pay its portion of the required prior service credit 
 24.7   purchase payment amount, the executive director may notify the 
 24.8   commissioner of finance of that fact and the commissioner of 
 24.9   finance may order that the required school district payment be 
 24.10  deducted from the next subsequent payment or payments of state 
 24.11  education aid to the school district and be transmitted to the 
 24.12  teachers retirement association.  
 24.13     Sec. 3.  [TEACHERS RETIREMENT ASSOCIATION; REPAYMENT OF 
 24.14  INTEREST CHARGE ON CERTAIN MEMBER CONTRIBUTION SHORTAGE 
 24.15  PAYMENTS.] 
 24.16     (a) Independent school district No. 274, Hopkins, shall pay 
 24.17  the amount of $1,004.08, plus compound interest on each amount 
 24.18  at the annual rate of six percent from June 1, 1997, to the date 
 24.19  of payment, to an eligible person described in paragraph (b) to 
 24.20  compensate the person for a past overcharge in a member 
 24.21  contribution shortage payment.  The shortage was caused by the 
 24.22  failure of the school district to make the required member 
 24.23  contribution deductions during the 1968-1969 school year and the 
 24.24  overpayment was caused by the failure of the teachers retirement 
 24.25  association to notify the eligible person in a timely fashion of 
 24.26  the shortage. 
 24.27     (b) An eligible person is a person who: 
 24.28     (1) was employed by independent school district No. 274, 
 24.29  Hopkins, during the 1968-1969 school year and suffered an under 
 24.30  deduction by the school district of $114.66; 
 24.31     (2) took a member contribution refund in the early 1970's 
 24.32  and repaid the refund in November, 1974; and 
 24.33     (3) had an appeal denied by the teachers retirement 
 24.34  association board of trustees at a May 8, 1998, hearing, 
 24.35  reflected in a May 21, 1998, findings and final order. 
 24.36     (c) The payments must be made within 30 days of the 
 25.1   effective date.  If independent school district No. 274, 
 25.2   Hopkins, fails to make a timely payment of its obligation, the 
 25.3   teacher retirement association must make the payment and may 
 25.4   notify the commissioner of finance of the school district's 
 25.5   failure to pay.  In that event, the commissioner of finance may 
 25.6   order that the required school district payment be deducted from 
 25.7   the next subsequent payment of state education aid to the school 
 25.8   district and transmitted to the teachers retirement association. 
 25.9      Sec. 4.  [TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF 
 25.10  SERVICE CREDIT FOR CERTAIN SABBATICAL LEAVES.] 
 25.11     (a) Notwithstanding any provision of Minnesota Statutes, 
 25.12  chapter 354, to the contrary, an eligible teacher as defined in 
 25.13  paragraph (b) is entitled to purchase allowable and formula 
 25.14  service credit from the teachers retirement association for the 
 25.15  uncredited portion of a sabbatical leave during the 1976-1977 
 25.16  school year under paragraph (c). 
 25.17     (b) An eligible teacher is a person who was born on 
 25.18  September 10, 1942, became a member of the teachers retirement 
 25.19  association on October 31, 1968, is employed by independent 
 25.20  school district No. 16, Spring Lake Park, and will qualify for 
 25.21  an early normal retirement annuity under the "rule of 90" on 
 25.22  September 16, 2000. 
 25.23     (c) Notwithstanding Minnesota Statutes, section 356.55, 
 25.24  subdivision 5, the eligible person may pay, before January 1, 
 25.25  2000, or the date of retirement, whichever is earlier, an amount 
 25.26  equal to the employee contribution rate or rates in effect 
 25.27  during the prior service period applied to the actual salary 
 25.28  rates in effect during the prior service period, plus annual 
 25.29  compound interest at the rate of 8.5 percent from the date on 
 25.30  which the contributions would have been made if made 
 25.31  contemporaneous with the service period to the date on which the 
 25.32  payment is actually made.  Independent school district No. 16, 
 25.33  Spring Lake Park, must pay the balance of the prior service 
 25.34  credit purchase payment amount calculated under Minnesota 
 25.35  Statutes, section 356.55, within 30 days of the payment by the 
 25.36  eligible person.  The executive director of the teachers 
 26.1   retirement association must notify the superintendent of 
 26.2   independent school district No. 16, Spring Lake Park, of its 
 26.3   payment amount and payment due date if the eligible person makes 
 26.4   the required payment. 
 26.5      (d) If independent school district No. 16, Spring Lake 
 26.6   Park, fails to pay its portion of the required prior service 
 26.7   credit purchase payment amount, the executive director may 
 26.8   notify the commissioner of finance of that fact and the 
 26.9   commissioner of finance may order that the required employer 
 26.10  payment be deducted from the next subsequent payment or payments 
 26.11  of state education aid to the school district and be transmitted 
 26.12  to the teachers retirement association. 
 26.13     (e) An eligible teacher must provide any relevant 
 26.14  documentation required by the executive director to determine 
 26.15  eligibility for the prior service credit under this section. 
 26.16     (f) Service credit for the purchase period must be granted 
 26.17  by the teachers retirement association to the account of the 
 26.18  eligible teacher upon receipt of the purchase payment amount 
 26.19  specified in paragraph (c). 
 26.20     Sec. 5.  [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; STATE 
 26.21  BOARD OF PUBLIC DEFENSE EMPLOYEE PRIOR SERVICE CREDIT PURCHASE.] 
 26.22     (a) An eligible person described in paragraph (b) is 
 26.23  entitled to purchase service credit from the public employees 
 26.24  retirement association for the period of omitted deductions 
 26.25  December 19, 1992, through December 27, 1994. 
 26.26     (b) An eligible person for purposes of paragraph (a) is a 
 26.27  person who: 
 26.28     (1) was born on August 17, 1950; 
 26.29     (2) was employed through Winona county until 1992; 
 26.30     (3) is currently employed by the state board of public 
 26.31  defense in the third judicial district public defender's office; 
 26.32  and 
 26.33     (4) had omitted member contributions for public employment 
 26.34  during the period December 19, 1992, through December 27, 1994. 
 26.35     (c) The prior service credit purchase payment amount is 
 26.36  governed by Minnesota Statutes, section 356.55.  Authority to 
 27.1   purchase the service credit expires on July 1, 2000. 
 27.2      (d) Notwithstanding Minnesota Statutes, section 356.55, 
 27.3   subdivision 5, the eligible person must pay, on or before 
 27.4   September 1, 1999, an amount equal to the employee contribution 
 27.5   rate in effect during the prior service period applied to the 
 27.6   actual salary rates in effect during the prior service period, 
 27.7   plus annual compound interest at the rate of 8.5 percent from 
 27.8   the date on which the contributions would have been made if made 
 27.9   contemporaneous with the service period to the date on which the 
 27.10  payment is actually made.  The state board of public defense 
 27.11  must pay the balance of the prior service credit purchase 
 27.12  payment amount calculated under Minnesota Statutes, section 
 27.13  356.55, within 30 days of the payment by the eligible person. 
 27.14     (e) A person purchasing service credit under this section 
 27.15  must provide sufficient documentation of eligibility to the 
 27.16  executive director of the public employees retirement 
 27.17  association. 
 27.18     Sec. 6.  [TRA; PURCHASE OF SERVICE CREDIT FOR FINAL PORTION 
 27.19  OF EXTENDED LEAVE OF ABSENCE BY ANOKA-HENNEPIN TEACHER.] 
 27.20     (a) An eligible person, as described in paragraph (b), is 
 27.21  entitled to purchase allowable and formula service credit in the 
 27.22  teachers retirement association for the period specified in 
 27.23  paragraph (c) by making the payment specified in Minnesota 
 27.24  Statutes, section 356.55. 
 27.25     (b) An eligible person is a person who: 
 27.26     (1) was born on February 1, 1943; 
 27.27     (2) was initially employed as a teacher by the Richfield 
 27.28  school district in 1966; 
 27.29     (3) is currently employed as an elementary school principal 
 27.30  by independent school district No. 11, Anoka-Hennepin; and 
 27.31     (4) was on an extended leave of absence from June 29, 1984, 
 27.32  to June 28, 1989, but failed to obtain service credit for the 
 27.33  final two years of the leave. 
 27.34     (c) The prior service credit purchase period is July 1, 
 27.35  1987, through June 28, 1989. 
 27.36     Sec. 7.  [EFFECTIVE DATE.] 
 28.1      Sections 1 to 6 are effective on the day following final 
 28.2   enactment. 
 28.3                              ARTICLE 6  
 28.4                INCLUSION OF SUPPLEMENTAL NEEDS TRUSTS 
 28.5                 AS OPTIONAL ANNUITY FORM RECIPIENTS 
 28.6      Section 1.  [356.372] [SUPPLEMENTAL NEEDS TRUST AS OPTIONAL 
 28.7   ANNUITY FORM RECIPIENT.] 
 28.8      Subdivision 1.  [INCLUSION AS RECIPIENT.] Notwithstanding 
 28.9   any provision to the contrary of the laws, articles of 
 28.10  incorporation, or bylaws governing a covered retirement plan 
 28.11  specified in subdivision 3, a retiring member may designate a 
 28.12  qualified supplemental needs trust under subdivision 2 as the 
 28.13  remainder recipient on an optional retirement annuity form for a 
 28.14  period not to exceed the lifetime of the beneficiary of the 
 28.15  supplemental needs trust. 
 28.16     Subd. 2.  [QUALIFIED SUPPLEMENTAL NEEDS TRUST.] A qualified 
 28.17  supplemental needs trust is a trust that: 
 28.18     (1) was established on or after July 1, 1992; 
 28.19     (2) was established solely for the benefit of one person 
 28.20  who has a disability under Social Security Administration 
 28.21  supplemental security income or retirement, survivors, and 
 28.22  disability insurance disability determination standards who was 
 28.23  determined as such before the creation of the trust; 
 28.24     (3) is funded, in whole or in part, by the primary 
 28.25  recipient of the optional annuity form and, unless the trust is 
 28.26  a Zebley trust, is not funded by the beneficiary, the 
 28.27  beneficiary's spouse, or a person who is required to pay a sum 
 28.28  to or for the trust beneficiary under the terms of litigation or 
 28.29  a litigation settlement; 
 28.30     (4) is established to cover reasonable living expenses and 
 28.31  other basic needs of the disabilitant, in whole or in part, in 
 28.32  instances when public assistance does not provide sufficiently 
 28.33  for these needs; 
 28.34     (5) is not permitted to make disbursement to replace or 
 28.35  reduce public assistance otherwise available; 
 28.36     (6) is irrevocable; 
 29.1      (7) terminates upon the death of the disabled person for 
 29.2   whose benefit it was established; and 
 29.3      (8) is determined by the executive director to be a trust 
 29.4   that contains excluded assets for purposes of the qualification 
 29.5   for public entitlement benefits under the applicable federal and 
 29.6   state laws and regulations. 
 29.7      Subd. 3.  [COVERED RETIREMENT PLAN.] The provisions of this 
 29.8   section apply to the following retirement plans: 
 29.9      (1) general state employees retirement plan of the 
 29.10  Minnesota state retirement system, established under chapter 
 29.11  352; 
 29.12     (2) correctional employees retirement plan of the Minnesota 
 29.13  state retirement system, established under chapter 352; 
 29.14     (3) state patrol retirement plan, established under chapter 
 29.15  352B; 
 29.16     (4) legislators retirement plan, established under chapter 
 29.17  3A; 
 29.18     (5) judges retirement plan, established under chapter 490; 
 29.19     (6) public employees retirement plan, established under 
 29.20  chapter 353; 
 29.21     (7) public employees police and fire plan, established 
 29.22  under chapter 353; 
 29.23     (8) teachers retirement plan, established under chapter 
 29.24  354; 
 29.25     (9) Duluth teachers retirement fund association, 
 29.26  established under chapter 354A; 
 29.27     (10) St. Paul teachers retirement fund association, 
 29.28  established under chapter 354A; 
 29.29     (11) Minneapolis teachers retirement fund association, 
 29.30  established under chapter 354A; 
 29.31     (12) Minneapolis employees retirement plan, established 
 29.32  under chapter 422A; 
 29.33     (13) Minneapolis firefighters relief association, 
 29.34  established under chapter 69; and 
 29.35     (14) Minneapolis police relief association, established 
 29.36  under chapter 423B. 
 30.1      Sec. 2.  [EFFECTIVE DATE.] 
 30.2      Section 1 is effective on the day following final enactment.
 30.3                              ARTICLE 7 
 30.4              VOLUNTEER FIRE RELIEF ASSOCIATION CHANGES 
 30.5      Section 1.  [REPEALER.] 
 30.6      Minnesota Statutes 1998, section 424A.02, subdivision 5, is 
 30.7   repealed. 
 30.8      Sec.  2.  [EFFECTIVE DATE.] 
 30.9      Section 1 is effective July 1, 1999.