1.1                          A bill for an act 
  1.2             relating to retirement; various retirement plans; 
  1.3             clarifying the laws applicable to the remaining local 
  1.4             police and paid firefighter pension plans; repealing 
  1.5             obsolete local police and paid firefighter pension 
  1.6             plan laws; providing public employee pension coverage 
  1.7             for certain foreign citizens; clarifying membership 
  1.8             eligibility and allowable service credit for the 
  1.9             public employees retirement association; requiring 
  1.10            membership for charter school teachers in the teachers 
  1.11            retirement association; providing for the payment of 
  1.12            unpaid closed charter school retirement contributions 
  1.13            from charter school lease aid; eliminating 
  1.14            contribution rate increases in the local government 
  1.15            correctional service retirement plan; establishing 
  1.16            provisions relating to employees of the Kanabec 
  1.17            hospital if the hospital is privatized; extending the 
  1.18            expiration date for certain prior service credit 
  1.19            purchase authorizations; recodifying social security 
  1.20            coverage provisions; implementing recommended changes 
  1.21            in salary actuarial assumptions; clarifying the 
  1.22            restrictions on supplemental and local pension plans 
  1.23            for plans funded from accumulated sick and vacation 
  1.24            leave; reorganizing and revising various general 
  1.25            retirement provisions; instructing the revisor of 
  1.26            statutes; authorizing the commissioner of 
  1.27            administration to lease pension fund facilities to 
  1.28            deferred compensation service providers; authorizing 
  1.29            certain volunteer firefighters to receive service 
  1.30            pensions or disability benefits without terminating 
  1.31            active service; amending Minnesota Statutes 2000, 
  1.32            sections 69.77; 69.80; 353.01, by adding a 
  1.33            subdivision; 353.64, subdivision 7a; 353A.08, 
  1.34            subdivision 6a; 353E.02, subdivision 1, by adding a 
  1.35            subdivision; 353E.03; 353F.02, subdivision 4; 
  1.36            354A.011, subdivision 27; 354A.12, subdivision 3d; 
  1.37            355.01, subdivisions 1, 3, 6, 8, by adding 
  1.38            subdivisions; 355.02; 355.03; 355.05; 355.07; 355.08; 
  1.39            356.001; 356.20, subdivisions 1, 2, 3, 4, 4a; 356.215, 
  1.40            as amended; 356.216; 356.217; 356.219; 356.22; 356.23; 
  1.41            356.24, subdivisions 1b, 1c, 2; 356.245; 356.25; 
  1.42            356.30; 356.302; 356.303; 356.32; 356.40; 356.41; 
  1.43            356.50; 356.55, as amended; 356.551; 356.611; 356.65, 
  1.44            subdivision 2; 356.87; 356.89, subdivision 3; 423A.17; 
  1.45            423A.171; 423B.09, subdivision 6; 424A.02, subdivision 
  1.46            1; 424A.09; Minnesota Statutes 2001 Supplement, 
  2.1             sections 352.01, subdivision 11; 353.01, subdivisions 
  2.2             2a, 2b, 11b, 16; 353.27, subdivisions 4, 11; 354.05, 
  2.3             subdivisions 2, 13; 356.24, subdivision 1; 356.555; 
  2.4             356.62; 356.65, subdivision 1; Laws 1997,chapter 202, 
  2.5             article 2, section 61, as amended; Laws 1999, chapter 
  2.6             222, article 16, section 16; Laws 2000, chapter 461, 
  2.7             article 10, section 3, as amended; Laws 2000, chapter 
  2.8             461, article 12, section 20; Laws 2001, First Special 
  2.9             Session chapter 10, article 6, section 21; proposing 
  2.10            coding for new law in Minnesota Statutes, chapters 3A; 
  2.11            355; 356; proposing coding for new law as Minnesota 
  2.12            Statutes, chapter 356B; repealing Minnesota Statutes 
  2.13            2000, sections 69.25; 69.26; 69.27; 69.28; 69.29; 
  2.14            69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 69.40; 
  2.15            69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 
  2.16            69.48; 69.49; 69.50; 69.51; 69.52; 69.53; 69.62; 
  2.17            69.78; 297I.10, subdivision 2; 355.01, subdivisions 2, 
  2.18            4, 5, 9, 10; 355.11; 355.12; 355.13; 355.14; 355.15; 
  2.19            355.16; 355.17; 355.201; 355.202; 355.203; 355.204; 
  2.20            355.205; 355.206; 355.207; 355.208; 355.209; 355.21; 
  2.21            355.22; 355.23; 355.24; 355.25; 355.26; 355.27; 
  2.22            355.28; 355.281; 355.282; 355.283; 355.284; 355.285; 
  2.23            355.286; 355.287; 355.288; 355.29; 355.291; 355.292; 
  2.24            355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 
  2.25            355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 
  2.26            355.41; 355.42; 355.43; 355.44; 355.45; 355.46; 
  2.27            355.48; 355.49; 355.50; 355.51; 355.52; 355.54; 
  2.28            355.55; 355.56; 355.57; 355.58; 355.59; 355.60; 
  2.29            355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 
  2.30            355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 
  2.31            355.74; 355.75; 355.76; 355.77; 355.78; 355.79; 
  2.32            355.80; 355.81; 355.90; 356.19; 356.305; 356.306; 
  2.33            356.31; 356.325; 356.35; 356.36; 356.37; 356.371, 
  2.34            subdivisions 2, 3; 356.372; 356.38; 356.39; 356.45; 
  2.35            356.451; 356.452; 356.453; 356.454; 356.455; 356.615; 
  2.36            356.71; 356.80; 356.81; 356.86; 356.865; 356.88; 
  2.37            356.89; 423.37; 423.371; 423.372; 423.373; 423.374; 
  2.38            423.375; 423.377; 423.378; 423.379; 423.38; 423.381; 
  2.39            423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 
  2.40            423.388; 423.389; 423.39; 423.391; 423.392; 423.801; 
  2.41            423.802; 423.803; 423.804; 423.805; 423.806; 423.808; 
  2.42            423.809; 423.810; 423.812; 423.813; 423.814; 423.90; 
  2.43            423A.03; 424.01; 424.02; 424.03; 424.04; 424.05; 
  2.44            424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 
  2.45            424.17; 424.18; 424.19; 424.20; 424.21; 424.22; 
  2.46            424.23; 424.24; 424.25; 424.27; 424.28; 424.29; 
  2.47            Minnesota Statutes 2001 Supplement, sections 353.01, 
  2.48            subdivision 39; 356.371, subdivision 1; 356.866; 
  2.49            Special Laws 1889, chapter 425; Special Laws 1891, 
  2.50            chapter 11; Laws 1897, chapters 389; 390; Laws 1915, 
  2.51            chapter 68; Laws 1917, chapter 196; Laws 1919, 
  2.52            chapters 68, 515; Laws 1921, chapter 118; Laws 1923, 
  2.53            chapter 54; Laws 1925, chapter 197; Laws 1931, chapter 
  2.54            48; Laws 1933, chapter 122; Laws 1935, chapters 92; 
  2.55            192; 208; 259; Laws 1937, chapters 132; 197; 253; Laws 
  2.56            1939, chapters 124; 304; Laws 1941, chapters 74; 182; 
  2.57            196; Laws 1943, chapters 170; 267; 397; 413; 432; Laws 
  2.58            1945, chapters 74; 182; 277; 300; Laws 1947, chapters 
  2.59            40; 43; 101; 274; 329; Laws 1949, chapters 87; 144; 
  2.60            153; 154; 164; 191; 235; 281; 378; Laws 1951, chapters 
  2.61            43; 45; 48; 144; 233; 243; 420; 435; 499; Laws 1953, 
  2.62            chapters 37; 44; 91; 235; 253; 348; 391; 401; 406; 
  2.63            Laws 1955, chapters 42; 49; 75; 151; 187; 188; 293; 
  2.64            294; 348; 375; 827; Laws 1957, chapters 10; 16; 36; 
  2.65            127; 144; 164; 256; 257; 455; 630; 793; Laws 1959, 
  2.66            chapters 108; 131; 191; 207; 208; 211; 437; Laws 1961, 
  2.67            chapters 186; 290; 295; 300; 343; 376; 399; 434; 435, 
  2.68            section 2; 443; 620; 631; 747; Extra Session Laws 
  2.69            1961, chapters 28; 80; Laws 1963, chapters 36; 208; 
  2.70            221; 271; 443; 453; 454; 464; 619; 636; 643; 670; 715; 
  2.71            Laws 1965, chapters 174; 179; 190; 418; 457; 458; 465; 
  3.1             498; 536; 540; 594; 604; 605; 636; 790; Laws 1967, 
  3.2             chapters 644; 678; 702; 708; 730; 732; 736; 751; 775; 
  3.3             783; 798; 807; 816; 848; Laws 1969, chapters 138; 442; 
  3.4             443; 552; 576; 594; 614; 641; 668; 669; 670; 671; 672; 
  3.5             686; 694; 716; 849; 1087; Laws 1971, chapters 51; 178; 
  3.6             407; 549; 614; 807; 809; 810; Extra Session Laws 1971, 
  3.7             chapter 41; Laws 1973, chapters 286; 287; 346; 359; 
  3.8             432; 433; 587; Laws 1974, chapters 251; 382; Laws 
  3.9             1975, chapters 120; 121; 127; 254, sections 1, 2, 3, 
  3.10            4, 5, 6; 368, section 54; 389; 408; 423; 424; 425; 
  3.11            Laws 1976, chapters 36; 78; 85; 99; 247; Laws 1977, 
  3.12            chapters 83; 164, sections 1, 3; 169; 270; 275; 374, 
  3.13            sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 
  3.14            14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 
  3.15            27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 
  3.16            40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 
  3.17            53, 54, 55, 56, 57, 58, 59, 60; 429, section 62; Laws 
  3.18            1978, chapters 563, sections 12, 13, 14, 16, 17, 18, 
  3.19            19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30; 579; 
  3.20            648; 690, sections 9, 10; 793, section 96; Laws 1979, 
  3.21            chapters 131, section 3; 216, sections 27, 28, 29, 30, 
  3.22            31, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44; Laws 
  3.23            1980, chapters 341, sections 2, 3, 4, 5, 6, 9, 10; 
  3.24            600, sections 11, 12, 13, 14, 15, 16, 17, 18, 22; 607, 
  3.25            article XV, section 23; Laws 1981, chapter 68, 
  3.26            sections 31, 32, 33, 34, 35, 36, 37, 41, 42, 43; Laws 
  3.27            1981, chapter 224, sections 236, 237, 239, 240, 243, 
  3.28            244, 247, 248, 252, 253, 258, 259, 260, 261, 263, 264, 
  3.29            265, 266, 267, 268, 270, 272, 273; Laws 1981, chapter 
  3.30            297, sections 1, 2; Laws 1982, chapters 402; 443; 574, 
  3.31            sections 3, 4, 5, 6, 8; 578, article II, section 1, 
  3.32            subdivision 8, article III, section 18; 610, sections 
  3.33            8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20; Laws 
  3.34            1983, chapters 47; 74; 84, section 1; 291, sections 8, 
  3.35            9, 10, 11, 12, 13, 14, 15, 16, 17; Laws 1984, chapter 
  3.36            574, sections 18, 19, 20, 22, 23, 24, 25, 26, 33; Laws 
  3.37            1985, chapters 259, sections 5, 6; 261, sections 14, 
  3.38            15, 16, 18, 20, 32, 33, 34, 35, 36; Laws 1985, First 
  3.39            Special Session chapter 16, article 2, section 6; Laws 
  3.40            1986, chapters 359, sections 22, 23, 24, 25; 458, 
  3.41            sections 23, 34; Laws 1987, chapter 372, article 2, 
  3.42            sections 7, 8, 9, 10, 12; Laws 1988, chapter 709, 
  3.43            articles 8, section 5; 9, section 5; Laws 1989, 
  3.44            chapter 319, article 11, sections 2, 3, 4, 12; Laws 
  3.45            1990, chapter 589, article 1, section 7; Laws 1991, 
  3.46            chapters 96; 269, article 2, sections 12, 13; Laws 
  3.47            1992, chapters 392, section 1; 393, section 1; 422; 
  3.48            431, section 1; 448; 455; 563, sections 3, 4, 5; 586, 
  3.49            section 1; Laws 1993, chapters 72; 110; 112, section 
  3.50            2; 126; 202, article 1; Laws 1994, chapters 409; 410; 
  3.51            474; 490; 541, section 3; Laws 1995, chapter 262, 
  3.52            article 10, section 4; Laws 1996, chapter 448, article 
  3.53            2, section 1; Laws 1997, chapter 233, article 1, 
  3.54            section 58; Laws 1997, chapter 241, article 2, 
  3.55            sections 2, 3, 4, 5, 6, 9, 10, 11, 13, 14, 15, 20; 
  3.56            Laws 1999, chapter 222, article 3, section 6; Laws 
  3.57            2000, chapter 461, article 10, section 2. 
  3.58  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  3.59                             ARTICLE 1 
  3.60                       LOCAL POLICE AND PAID 
  3.61                      FIRE RELIEF ASSOCIATION 
  3.62                    GOVERNING LAW CLARIFICATION 
  3.63     Section 1.  Minnesota Statutes 2000, section 69.77, is 
  3.64  amended to read: 
  4.1      69.77 [POLICE AND FIREFIGHTERS' RELIEF ASSOCIATION 
  4.2   GUIDELINES ACT.] 
  4.3      Subdivision 1.  [~~AUTHORIZED~~ CONDITIONED EMPLOYER SUPPORT 
  4.4   FOR A RELIEF ASSOCIATION.] (a) Notwithstanding any law to the 
  4.5   contrary, only if the municipality and the relief association 
  4.6   comply with the provisions of this section, a municipality may 
  4.7   contribute public funds, including any applicable police or fire 
  4.8   state aid, or levy property taxes for the support of a police or 
  4.9   firefighters' relief association, enumerated in subdivision 1a, 
  4.10  however organized, which provides retirement coverage or pays a 
  4.11  service pension to a retired police officer or firefighter or a 
  4.12  retirement benefit to a surviving dependent of either an active 
  4.13  or retired police officer or firefighter, for the operation and 
  4.14  maintenance of the relief association ~~only if the municipality~~ 
  4.15  ~~and the relief association comply with the provisions of this~~ 
  4.16  ~~section~~.  
  4.17     (b) The commissioner shall not include in the apportionment 
  4.18  of police or fire state aid to the county auditor ~~pursuant to~~ 
  4.19  under section 69.021, subdivision 6, any municipality in which 
  4.20  there exists a local police or salaried firefighters' relief 
  4.21  association as enumerated in subdivision 1a which does not 
  4.22  comply with the provisions of this section or the provisions of 
  4.23  any applicable special law relating to the funding or financing 
  4.24  of the association and that municipality ~~shall~~ may not qualify 
  4.25  initially to receive, or be entitled subsequently to retain, 
  4.26  state aid ~~pursuant to~~ under sections 69.011 to 69.051 until the 
  4.27  reason for the disqualification is remedied, whereupon the 
  4.28  municipality, if otherwise qualified, ~~shall be~~ is entitled to 
  4.29  again receive state aid for the year occurring immediately 
  4.30  subsequent to the year in which the disqualification is remedied.
  4.31     (c) The state auditor and the commissioner shall determine 
  4.32  if a municipality with a local police or salaried firefighters' 
  4.33  relief association fails to comply with the provisions of this 
  4.34  section or the funding or financing provisions of any applicable 
  4.35  special law. 
  4.36     Subd. 1a.  [COVERED RETIREMENT PLANS.] The provisions of 
  5.1   this section ~~shall~~ apply to the following local retirement ~~funds~~ 
  5.2   plans: 
  5.3      (1) ~~any police pension fund or relief association which is~~ 
  5.4   ~~established pursuant to chapter 423~~ the Bloomington firefighters 
  5.5   relief association; 
  5.6      (2) ~~any salaried firefighters' pension fund or relief~~ 
  5.7   ~~association which is established pursuant to chapter 424~~ the 
  5.8   Fairmont police relief association; 
  5.9      (3) ~~any pension fund or relief association which is~~ 
  5.10  ~~established pursuant to this chapter which has five or more~~ 
  5.11  ~~members who receive compensation for services rendered in the~~ 
  5.12  ~~employment covered by the pension fund or relief association and~~ 
  5.13  ~~which provides for retirement coverage or a service pension~~ 
  5.14  ~~based on the compensation paid to members for that service~~ the 
  5.15  Minneapolis firefighters relief association; 
  5.16     (4) ~~any pension fund or relief association which is~~ 
  5.17  ~~established and operates in whole or in part pursuant to special~~ 
  5.18  ~~legislation and which provides for retirement coverage or a~~ 
  5.19  ~~service pension based on the compensation paid to members for~~ 
  5.20  ~~service as police officers or firefighters or which provides for~~ 
  5.21  ~~retirement coverage or a service pension to volunteer~~ 
  5.22  ~~firefighters based on the compensation paid to or the service~~ 
  5.23  ~~pension provided by a pension fund or relief association located~~ 
  5.24  ~~in the same municipality for police officers employed by the~~ 
  5.25  ~~municipality but not covered by clause (1), (2) or (3)~~ the 
  5.26  Minneapolis police relief association; and 
  5.27     (5) ~~any governmental subdivision retirement fund~~ 
  5.28  ~~established pursuant to any law providing for retirement~~ 
  5.29  ~~coverage to police officers or salaried firefighters or a~~ 
  5.30  ~~retirement benefit to their dependents and not otherwise~~ 
  5.31  ~~described in this subdivision~~ the Virginia fire department 
  5.32  relief association. 
  5.33     Subd. 2.  [INAPPLICABLE PENALTY.] The penalty provided for 
  5.34  in subdivision 1 ~~shall~~ does not apply to a relief association 
  5.35  enumerated in subdivision 1a if the requirements of subdivisions 
  5.36  ~~2a~~ 3 to ~~2h~~ 10 are met. 
  6.1      Subd. ~~2a~~ 3.  [MINIMUM MEMBER CONTRIBUTION.] Each active 
  6.2   member of the relief association ~~shall~~ must pay into the special 
  6.3   fund of the association during a year of covered service, a 
  6.4   contribution for retirement coverage, including survivorship 
  6.5   benefits, of not less than eight percent of the maximum rate of 
  6.6   salary upon which retirement coverage is credited and service 
  6.7   pension and retirement benefit amounts are determined.  The 
  6.8   member contributions ~~shall~~ must be made by payroll deduction 
  6.9   from the salary of the member by the municipality, and 
  6.10  ~~shall~~ must be transmitted by the municipality to the relief 
  6.11  association as soon as practical.  The relief association shall 
  6.12  deposit the member contribution to the credit of the special 
  6.13  fund of the relief association.  The member contribution 
  6.14  requirement specified in this subdivision ~~shall~~ does not apply 
  6.15  to any members who are volunteer firefighters. 
  6.16     Subd. ~~2b~~ 4.  [RELIEF ASSOCIATION FINANCIAL REQUIREMENTS; 
  6.17  MINIMUM MUNICIPAL OBLIGATION.] (a) The officers of the relief 
  6.18  association shall determine the financial requirements of the 
  6.19  relief association and minimum obligation of the municipality 
  6.20  for the following calendar year in accordance with the 
  6.21  requirements of this subdivision.  The financial requirements of 
  6.22  the relief association and the minimum obligation of the 
  6.23  municipality ~~shall~~ must be determined on or before the 
  6.24  submission date established by the municipality ~~pursuant to~~ 
  6.25  under subdivision ~~2c~~ 5. 
  6.26     (b) The financial requirements of the relief association 
  6.27  for the following calendar year ~~shall~~ must be based on the most 
  6.28  recent actuarial valuation or survey of the special fund of the 
  6.29  association if more than one fund is maintained by the 
  6.30  association, or of the association, if only one fund is 
  6.31  maintained, prepared in accordance with sections 356.215, 
  6.32  subdivisions 4 to 4k and 356.216, as required ~~pursuant to~~ under 
  6.33  subdivision ~~2h~~ 10.  If an actuarial estimate is prepared by the 
  6.34  actuary of the relief association as part of obtaining a 
  6.35  modification of the benefit plan of the relief association and 
  6.36  the modification is implemented, the actuarial estimate ~~shall~~ 
  7.1   must be used in calculating the subsequent financial 
  7.2   requirements of the relief association. 
  7.3      (c) If the relief association has an unfunded actuarial 
  7.4   accrued liability as reported in the most recent actuarial 
  7.5   valuation or survey, the total of the amounts 
  7.6   calculated ~~pursuant to~~ under clauses ~~(a), (b), and (c)~~ 
  7.7   ~~shall~~ (1), (2), and (3) constitute the financial requirements of 
  7.8   the relief association for the following year.  If the relief 
  7.9   association does not have an unfunded actuarial accrued 
  7.10  liability as reported in the most recent actuarial valuation or 
  7.11  survey, the amount calculated ~~pursuant to~~ under clauses ~~(a) and~~ 
  7.12  ~~(b) shall~~ (1) and (2) constitute the financial requirements of 
  7.13  the relief association for the following year.  The financial 
  7.14  requirement elements are: 
  7.15     ~~(a)~~ (1) the normal level cost requirement for the following 
  7.16  year, expressed as a dollar amount, which ~~shall~~ must be 
  7.17  determined by applying the normal level cost of the relief 
  7.18  association as reported in the actuarial valuation or survey and 
  7.19  expressed as a percentage of covered payroll to the estimated 
  7.20  covered payroll of the active membership of the relief 
  7.21  association, including any projected ~~increase~~ change in the 
  7.22  active membership, for the following year~~.~~; 
  7.23     ~~(b)~~ (2) for the Bloomington fire department relief 
  7.24  association, the Fairmont police relief association, and the 
  7.25  Virginia fire department relief association, to the dollar 
  7.26  amount of normal cost ~~thus~~ determined ~~shall~~ under clause (1) 
  7.27  must be added an amount equal to the dollar amount of the 
  7.28  administrative expenses of the special fund of the association 
  7.29  if more than one fund is maintained by the association, or of 
  7.30  the association if only one fund is maintained, for the most 
  7.31  recent year, multiplied by the factor of 1.035.  ~~For a relief~~ 
  7.32  ~~association in a municipality,~~ The administrative expenses are 
  7.33  those authorized under section 69.80.  No amount of 
  7.34  administrative expenses under this clause ~~shall~~ are to be 
  7.35  included in the financial requirements of ~~a~~ the Minneapolis 
  7.36  firefighters relief association ~~in a city of the first class~~ 
  8.1   ~~with a population of more than 300,000.~~ or the Minneapolis 
  8.2   police relief association; and 
  8.3      ~~(c)~~ (3) to the dollar amount of normal cost and expenses 
  8.4   determined under clauses ~~(a) and (b) shall~~ (1) and (2) must be 
  8.5   added an amount equal to the level annual dollar amount which is 
  8.6   sufficient to amortize the unfunded actuarial accrued liability 
  8.7   by December 31, 2010, as determined from the actuarial valuation 
  8.8   or survey of the fund, using an interest assumption set at the 
  8.9   applicable rate specified in section 356.215, subdivision 4d.  
  8.10  The amortization date specified in this clause ~~shall apply~~ 
  8.11  applies to all local police or salaried firefighters' relief 
  8.12  associations and ~~shall supersede~~ that date supersedes any 
  8.13  amortization date specified in any applicable special law. 
  8.14     (d) The minimum obligation of the municipality ~~shall be~~ is 
  8.15  an amount equal to the financial requirements of the relief 
  8.16  association reduced by the estimated amount of member 
  8.17  contributions from covered salary anticipated for the following 
  8.18  calendar year and the estimated amounts anticipated for the 
  8.19  following calendar year from the applicable state aid program 
  8.20  established ~~pursuant to~~ under sections 69.011 to 69.051 
  8.21  receivable by the relief association after any allocation 
  8.22  made ~~pursuant to~~ under section 69.031, subdivision 5, ~~clause~~ 
  8.23  ~~(2), subclause (c)~~ paragraph (b), clause (2), or 423A.01, 
  8.24  subdivision 2, clause (6), from the local police and salaried 
  8.25  firefighters' relief association amortization aid program 
  8.26  established ~~pursuant to~~ under section 423A.02 ~~and~~, subdivision 
  8.27  1, from the supplementary amortization state-aid program 
  8.28  established under ~~Laws 1984, chapter 564, section 48, and Laws~~ 
  8.29  ~~1985, chapter 261, section 17~~ section 423A.02, subdivision 1a, 
  8.30  and from the additional amortization state aid under section 
  8.31  423A.02, subdivision 1b. 
  8.32     Subd. ~~2c~~ 5.  [DETERMINATION SUBMISSION.] The officers of 
  8.33  the relief association shall submit the determination of the 
  8.34  financial requirements of the relief association and of the 
  8.35  minimum obligation of the municipality to the governing body on 
  8.36  or before the date established by the municipality, which ~~shall~~ 
  9.1   may not be earlier than August 1 and ~~shall~~ may not be later than 
  9.2   September 1 of each year.  The governing body of the 
  9.3   municipality ~~shall~~ must ascertain whether or not the 
  9.4   determinations were prepared in accordance with law. 
  9.5      Subd. ~~2d~~ 6.  [MUNICIPAL PAYMENT.] (a) The municipality 
  9.6   shall provide for and shall pay, each year, at least the amount 
  9.7   of the minimum obligation of the municipality to the relief 
  9.8   association.  
  9.9      (b) If there is any deficiency in the municipal payment to 
  9.10  meet the minimum obligation of the municipality as of the end of 
  9.11  any calendar year, the amount of the deficiency ~~shall~~ must be 
  9.12  added to the minimum obligation of the municipality for the 
  9.13  following year calculated ~~pursuant to~~ under subdivision ~~2b~~ 4 and 
  9.14  ~~shall~~ must include interest at the compound rate of six percent 
  9.15  per annum ~~compounded~~ from the date that the municipality was 
  9.16  required to make payment ~~pursuant to~~ under this subdivision 
  9.17  until the date that the municipality actually makes the required 
  9.18  payment. 
  9.19     Subd. ~~2e~~ 7.  [BUDGET INCLUSION.] (a) The municipality shall 
  9.20  provide in the annual municipal budget for at least the minimum 
  9.21  obligation of the municipality calculated ~~pursuant to~~ under 
  9.22  subdivision ~~2b~~ 4.  
  9.23     (b) The municipality may levy taxes for the payment of the 
  9.24  minimum obligation of the municipality without any limitation as 
  9.25  to rate or amount and irrespective of limitations imposed by 
  9.26  other provisions of law upon the rate or amount of taxation when 
  9.27  the balance of the special fund or any fund of the relief 
  9.28  association has attained a specified minimum asset level.  In 
  9.29  addition, any taxes levied ~~pursuant to~~ under this section ~~shall~~ 
  9.30  may not cause the amount or rate of other taxes levied in that 
  9.31  year or to be levied in a subsequent year by the municipality 
  9.32  which are subject to a limitation as to rate or amount to be 
  9.33  reduced.  
  9.34     (c) If the municipality does not include the full amount of 
  9.35  the minimum obligation of the municipality in the levy that the 
  9.36  municipality certified to the county auditor in any year, the 
 10.1   officers of the relief association shall certify the amount of 
 10.2   any deficiency to the county auditor.  Upon verifying the 
 10.3   existence of any deficiency in the levy certified by the 
 10.4   municipality, the county auditor shall spread a levy over the 
 10.5   taxable property of the municipality in the amount of the 
 10.6   deficiency certified to by the officers of the relief 
 10.7   association. 
 10.8      Subd. ~~2f~~ 8.  [ACCELERATED AMORTIZATION.] Any sums of money 
 10.9   paid by the municipality to the relief association in excess of 
 10.10  the minimum obligation of the municipality in any year ~~shall~~ 
 10.11  must be used to amortize any unfunded actuarial accrued 
 10.12  liabilities of the relief association. 
 10.13     Subd. ~~2g~~ 9.  [LOCAL POLICE AND PAID FIRE RELIEF ASSOCIATION 
 10.14  INVESTMENT AUTHORITY.] (a) The funds of the association must be 
 10.15  invested in securities that are authorized investments under 
 10.16  section 356A.06, subdivision 6 or 7, whichever 
 10.17  applies.  ~~Notwithstanding the foregoing,~~ Up to 75 percent of the 
 10.18  market value of the assets of the fund may be invested in 
 10.19  open-end investment companies registered under the federal 
 10.20  Investment Company Act of 1940, if the portfolio investments of 
 10.21  the investment companies comply with the type of securities 
 10.22  authorized for investment under section 356A.06, subdivision 7.  
 10.23  Securities held by the association before June 2, 1989, that do 
 10.24  not meet the requirements of this subdivision may be retained 
 10.25  after that date if they were proper investments for the 
 10.26  association on that date. 
 10.27     (b) The governing board of the association may select and 
 10.28  appoint investment agencies to act for and in its behalf or may 
 10.29  certify special fund assets for investment by the state board of 
 10.30  investment under section 11A.17.  The governing board of the 
 10.31  association may certify general fund assets of the relief 
 10.32  association for investment by the state board of investment in 
 10.33  fixed income pools or in a separately managed account at the 
 10.34  discretion of the state board of investment as provided in 
 10.35  section 11A.14.  The governing board of the association may 
 10.36  select and appoint a qualified private firm to measure 
 11.1   management performance and return on investment, and the firm 
 11.2   shall use the formula or formulas developed by the state board 
 11.3   under section 11A.04, clause (11). 
 11.4      Subd. ~~2h~~ 10.  [ACTUARIAL VALUATION REQUIRED.] The 
 11.5   association shall obtain an actuarial valuation showing the 
 11.6   condition of the special fund of the relief association ~~pursuant~~ 
 11.7   ~~to~~ under sections 356.215 and 356.216 and any applicable 
 11.8   standards for actuarial work established by the legislative 
 11.9   commission on pensions and retirement.  The actuarial valuation 
 11.10  must be made as of December 31 of every year.  A copy of the 
 11.11  actuarial valuation ~~shall~~ must be filed with the director of the 
 11.12  legislative reference library, the governing body of the 
 11.13  municipality in which the association is organized, the 
 11.14  executive director of the legislative commission on pensions and 
 11.15  retirement, and the state auditor, not later than July 1 of the 
 11.16  following year. 
 11.17     Subd. ~~2i~~ 11.  [MUNICIPAL APPROVAL OF BENEFIT CHANGES 
 11.18  REQUIRED.] Any amendment to the bylaws or articles of 
 11.19  incorporation of a relief association which increases or 
 11.20  otherwise affects the retirement coverage provided by or the 
 11.21  service pensions or retirement benefits payable from any police 
 11.22  or firefighters' relief association enumerated in subdivision 1a 
 11.23  ~~shall~~ is not ~~be~~ effective until it is ratified by the 
 11.24  municipality in which the relief association is located.  The 
 11.25  officers of the relief association shall not seek municipal 
 11.26  ratification ~~prior to~~ before obtaining either an updated 
 11.27  actuarial valuation including the proposed amendment or an 
 11.28  estimate of the expected actuarial impact of the proposed 
 11.29  amendment prepared by the actuary of the relief association and 
 11.30  submitting that actuarial valuation or estimate to the clerk of 
 11.31  the municipality. 
 11.32     Subd. ~~3~~ 12.  [CITATION.] This section may be cited as the 
 11.33  "Police and Firefighters' Relief Associations Guidelines Act of 
 11.34  1969." 
 11.35     Sec. 2.  Minnesota Statutes 2000, section 69.80, is amended 
 11.36  to read: 
 12.1      69.80 [AUTHORIZED ADMINISTRATIVE EXPENSES.] 
 12.2      (a) Notwithstanding any provision of law to the contrary, 
 12.3   the payment of the following necessary, reasonable and direct 
 12.4   expenses of maintaining, protecting and administering the 
 12.5   special fund, when provided for in the bylaws of the association 
 12.6   and approved by the board of trustees, ~~shall constitute~~ 
 12.7   constitutes authorized administrative expenses of a police, 
 12.8   salaried firefighters', or volunteer firefighters' relief 
 12.9   association organized under any law of this state: 
 12.10     ~~(a)~~ (1) office expense, including, but not limited to, 
 12.11  rent, utilities, equipment, supplies, postage, periodical 
 12.12  subscriptions, furniture, fixtures, and salaries of 
 12.13  administrative personnel; 
 12.14     ~~(b)~~ (2) salaries of the president, secretary, and treasurer 
 12.15  of the association, or their designees, and any other official 
 12.16  of the relief association to whom a salary is payable under 
 12.17  bylaws or articles of incorporation in effect on January 1, 
 12.18  1986, and their itemized expenses incurred as a result of 
 12.19  fulfilling their responsibilities as administrators of the 
 12.20  special fund; 
 12.21     ~~(c)~~ (3) tuition, registration fees, organizational dues, 
 12.22  and other authorized expenses of the officers or members of the 
 12.23  board of trustees incurred in attending educational conferences, 
 12.24  seminars, or classes relating to the administration of the 
 12.25  relief association; 
 12.26     ~~(d)~~ (4) audit, actuarial, medical, legal, and investment 
 12.27  and performance evaluation expenses; 
 12.28     ~~(e)~~ (5) reimbursement to the officers and members of the 
 12.29  board of trustees, or their designees, for reasonable and 
 12.30  necessary expenses actually paid and incurred in the performance 
 12.31  of their duties as officers or members of the board; and 
 12.32     ~~(f)~~ (6) premiums on fiduciary liability insurance and 
 12.33  official bonds for the officers, members of the board of 
 12.34  trustees, and employees of the relief association. 
 12.35     (b) Any other expenses of the relief association ~~shall~~ must 
 12.36  be paid from the general fund of the association, if one 
 13.1   exists.  If a relief association has only one fund, that 
 13.2   fund ~~shall be deemed to be~~ is the special fund for purposes of 
 13.3   this section.  If a relief association has a special fund and a 
 13.4   general fund, and any expense of the relief association that is 
 13.5   directly related to the purposes for which both funds were 
 13.6   established, the payment of that expense ~~shall~~ must be 
 13.7   apportioned between the two funds on the basis of the benefits 
 13.8   derived by each fund. 
 13.9      Sec. 3.  Minnesota Statutes 2000, section 353A.08, 
 13.10  subdivision 6a, is amended to read: 
 13.11     Subd. 6a.  [MILITARY SERVICE CONTRIBUTION AND REFUND.] A 
 13.12  person who was an active member of a local police or 
 13.13  firefighters relief association upon its consolidation with the 
 13.14  public employees retirement association, and who was otherwise 
 13.15  eligible for automatic service credit for military service under 
 13.16  ~~sections~~ Minnesota Statutes 2000, section 423.57 ~~and 424.23~~, and 
 13.17  who has not elected the type of benefit coverage provided by the 
 13.18  public employees police and fire fund at the time of 
 13.19  consolidation, must make employee contributions under section 
 13.20  353.01, subdivision 16, paragraph (h), to receive allowable 
 13.21  service credit from the association for a military service leave 
 13.22  after the effective date of the consolidation.  A person who 
 13.23  later elects, under subdivision 3, to retain benefit coverage 
 13.24  under the bylaws of the local relief association is eligible for 
 13.25  a refund from the association at the time of retirement.  The 
 13.26  association shall refund the employee contributions plus 
 13.27  interest at the rate of six percent, compounded quarterly, from 
 13.28  the date on which contributions were made until the first day of 
 13.29  the month in which the refund is paid.  The employer shall 
 13.30  receive a refund of the employer contributions.  The association 
 13.31  shall not pay a refund to a person who later elects, under 
 13.32  subdivision 3, the type of benefit coverage provided by the 
 13.33  public employees police and fire fund or to the person's 
 13.34  employer. 
 13.35     Sec. 4.  Minnesota Statutes 2000, section 423A.17, is 
 13.36  amended to read: 
 14.1      423A.17 [CONTINUATION OF SURVIVING SPOUSE BENEFITS UPON 
 14.2   REMARRIAGE.] 
 14.3      (a) Notwithstanding a provision of ~~section 69.48; 423.387,~~ 
 14.4   ~~subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1; or~~ 
 14.5   ~~424.24, subdivision 1, or other~~ law, article of incorporation, 
 14.6   or bylaw governing a local police or salaried firefighters 
 14.7   relief association to the contrary, the governing body of a 
 14.8   municipality may mandate the applicable local police or salaried 
 14.9   firefighters relief association to provide that a surviving 
 14.10  spouse benefit is payable for the life of the surviving spouse 
 14.11  and remains payable even in the event of the remarriage of the 
 14.12  surviving spouse. 
 14.13     (b) If the surviving spouse benefit change described in 
 14.14  paragraph (a) is made, the change applies to a surviving spouse 
 14.15  benefit payable on the effective date of the change and to the 
 14.16  potential surviving spouses of all active, deferred, or retired 
 14.17  members of the relief association who have that status on the 
 14.18  effective date of the change.  
 14.19     (c) In addition, if the surviving spouse benefit change 
 14.20  described in paragraph (a) is made a person who formerly was 
 14.21  receiving surviving spouse benefits from the relief association 
 14.22  and who had those benefits discontinued by virtue of the 
 14.23  remarriage is entitled, upon application, to a resumption of the 
 14.24  surviving spouse benefit, beginning with the last day of the 
 14.25  month following receipt of the application by the secretary of 
 14.26  the relief association.  Nothing in this section authorizes the 
 14.27  payment of a benefit amount to an estate. 
 14.28     (d) The change must be made by a municipal resolution 
 14.29  adopted by a majority vote of the municipality.  The resolution 
 14.30  must be filed by the secretary of the relief association with 
 14.31  the executive director of the legislative commission on pensions 
 14.32  and retirement, the state auditor, and the secretary of state. 
 14.33     Sec. 5.  Minnesota Statutes 2000, section 423A.171, is 
 14.34  amended to read: 
 14.35     423A.171 [BYLAW AMENDMENTS.] 
 14.36     (a) Notwithstanding a provision of ~~section 69.48; 423.387,~~ 
 15.1   ~~subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1;~~ 
 15.2   ~~423B.10; or 424.24, subdivision 1, or other~~ law governing a 
 15.3   local police or salaried firefighters' relief association to the 
 15.4   contrary, the board of trustees of a local relief association 
 15.5   governed by section 69.77 or its successor board under chapter 
 15.6   353A or 353B, with municipal approval as provided in section 
 15.7   69.77, subdivision ~~2i~~ 11, may amend the bylaws of the relief 
 15.8   association to provide that a surviving spouse benefit is 
 15.9   payable to a surviving spouse who married a deferred or retired 
 15.10  member after the member's retirement, provided the marriage 
 15.11  occurred at least five years before the death of the member. 
 15.12     (b) If the surviving spouse benefit change described in 
 15.13  paragraph (a) is made, the change applies to a surviving spouse 
 15.14  benefit payable on the effective date of the change and to the 
 15.15  potential surviving spouses of all deferred or retired members 
 15.16  of the relief association who have that status on the effective 
 15.17  date of the change. 
 15.18     (c) The bylaw amendment is not effective until a certified 
 15.19  copy of the amendment and the municipal approval has been filed 
 15.20  by the municipal clerk with the executive director of the 
 15.21  legislative commission on pensions and retirement, the state 
 15.22  auditor, and the secretary of state. 
 15.23     (d) Notwithstanding the provisions of section 353B.11, a 
 15.24  surviving spouse benefit change made under this section for a 
 15.25  relief association that has consolidated with the public 
 15.26  employees retirement association is effective upon approval by 
 15.27  the public employees retirement association and the municipality 
 15.28  ~~pursuant to~~ under paragraph (c). 
 15.29     Sec. 6.  Minnesota Statutes 2000, section 424A.09, is 
 15.30  amended to read: 
 15.31     424A.09 [APPLICATION TO CERTAIN RELIEF ASSOCIATIONS.] 
 15.32     This chapter ~~shall supersede~~ supersedes any special law 
 15.33  applicable to any municipal volunteer firefighters' relief 
 15.34  association or independent nonprofit firefighting corporation 
 15.35  specifically authorizing the relief association or nonprofit 
 15.36  firefighting corporation to exceed the service pension 
 16.1   limitations contained in Minnesota Statutes 1978, sections 69.06 
 16.2   and 69.691.  Any relief association which amended its bylaws to 
 16.3   provide for a full pro rata service pension amount at the 
 16.4   specified retirement age with 15 years service credit or 75 
 16.5   percent of the pro rata service pension amount at the specified 
 16.6   retirement age with ten years of service ~~pursuant to~~ under 
 16.7   Minnesota Statutes 1978, section 69.06, may continue to provide 
 16.8   the specified service pension amounts at the applicable years of 
 16.9   credited service to any member who has credit for at least ten 
 16.10  or 15 years, whichever is the applicable minimum service period 
 16.11  specified in the bylaws governing the relief association, on or 
 16.12  before December 31, 1979 ~~notwithstanding section 424A.02~~.  
 16.13     Sec. 7.  [APPLICATION; BLOOMINGTON FIREFIGHTERS RELIEF 
 16.14  ASSOCIATION.] 
 16.15     To the extent that Minnesota Statutes 2000, chapter 424, 
 16.16  applied to the Bloomington firefighters relief association on 
 16.17  the day before the effective date of section 5, Minnesota 
 16.18  Statutes 2000, chapter 424, continues to apply to the 
 16.19  Bloomington firefighters relief association after that date. 
 16.20     Sec. 8.  [REVISOR INSTRUCTIONS.] 
 16.21     (a) In the next and subsequent editions of Minnesota 
 16.22  Statutes, the revisor of statutes shall not print Minnesota 
 16.23  Statutes, sections 423.41 to 423.62, but shall denote those 
 16.24  sections as "[LOCAL, CITY OF FAIRMONT, POLICE PENSIONS.]." 
 16.25     (b) In the next and subsequent editions of Minnesota 
 16.26  Statutes, the revisor of statutes shall, in each section 
 16.27  indicated in column A, replace the cross-reference specified in 
 16.28  column B with the cross-reference set forth in column C: 
 16.29     Column A             Column B              Column C
 16.30     69.021, subd. 10     69.77, subd. 2a       69.77, subd. 3
 16.31     69.021, subd. 10     69.77, subd. 2b       69.77, subd. 4
 16.32     69.021, subd. 10     69.77, subd. 2c       69.77, subd. 5
 16.33     299A.465, subd. 5    424.03                Minnesota Statutes,
 16.34                                                  2000, 424.03 
 16.35     353A.07, subd. 6     69.77, subd. 2a       69.77, subd. 3 
 16.36     353A.09, subd. 4     69.77, subd. 2a       69.77, subd. 3 
 17.1      356.216              69.77, subd. 2b       69.77, subd. 4 
 17.2      356.219, subd. 2     69.77, subd. 2g       69.77, subd. 9 
 17.3      423.01, subd. 2      69.77, subd. 2b       69.77, subd. 4 
 17.4      423A.18              69.77, subd. 2i       69.77, subd. 11 
 17.5      423A.19, subd. 4     69.77, subd. 2i       69.77, subd. 11 
 17.6      423B.06, subd. 1     69.77, subd. 2a       69.77, subd. 3 
 17.7      423B.06, subd. 1     69.77, subd. 2b       69.77, subd. 4 
 17.8      423B.06, subd. 1     69.77, subd. 2c       69.77, subd. 5 
 17.9      423B.06, subd. 1     69.77, subd. 2d       69.77, subd. 6 
 17.10     423B.06, subd. 1     69.77, subd. 2e       69.77, subd. 7 
 17.11     423B.06, subd. 1     69.77, subd. 2f       69.77, subd. 8 
 17.12     423B.21, subd. 1     69.77, subd. 2b       69.77, subd. 4 
 17.13     Sec. 9.  [REPEALER; OBSOLETE POLICE AND FIRE PENSION LAWS.] 
 17.14     Subdivision 1.  [FIRST CLASS CITY FIRE; 
 17.15  REPEALER.] Minnesota Statutes 2000, sections 69.25; 69.26; 
 17.16  69.27; 69.28; 69.29; 69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 
 17.17  69.40; 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 69.48; 
 17.18  69.49; 69.50; 69.51; 69.52; 69.53; and 69.62, are repealed. 
 17.19     Subd. 2.  [THIRD CLASS CITY POLICE; REPEALER.] Minnesota 
 17.20  Statutes 2000, sections 423.37; 423.371; 423.372; 423.373; 
 17.21  423.374; 423.375; 423.377; 423.378; 423.379; 423.38; 423.381; 
 17.22  423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 423.388; 
 17.23  423.389; 423.39; 423.391; and 423.392, are repealed. 
 17.24     Subd. 3.  [SECOND CLASS CITY POLICE; REPEALER.] Minnesota 
 17.25  Statutes 2000, sections 423.801; 423.802; 423.803; 423.804; 
 17.26  423.805; 423.806; 423.808; 423.809; 423.810; 423.812; 423.813; 
 17.27  423.814; and 423.90, are repealed. 
 17.28     Subd. 4.  [SECOND CLASS CITY FIRE; REPEALER.] Minnesota 
 17.29  Statutes 2000, sections 424.01; 424.02; 424.03; 424.04; 424.05; 
 17.30  424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 424.17; 424.18; 
 17.31  424.19; 424.20; 424.21; 424.22; 424.23; 424.24; 424.25; 424.27; 
 17.32  424.28; and 424.29, are repealed. 
 17.33     Subd. 5.  [ALBERT LEA FIRE; REPEALER.] Laws 1943, chapters 
 17.34  170 and 397; Laws 1947, chapter 274; Laws 1949, chapters 87 and 
 17.35  281; Laws 1951, chapters 233, 420, and 435; Laws 1953, chapters 
 17.36  44 and 406; Laws 1957, chapter 127; Laws 1959, chapter 207; Laws 
 18.1   1963, chapter 643; Laws 1984, chapter 574, section 23; Laws 
 18.2   1985, chapter 261, section 36; and Laws 1993, chapter 72, are 
 18.3   repealed. 
 18.4      Subd. 6.  [ALBERT LEA POLICE; REPEALER.] Laws 1965, chapter 
 18.5   174; Laws 1976, chapter 247; and Laws 1985, chapter 261, section 
 18.6   36, are repealed. 
 18.7      Subd. 7.  [ANOKA POLICE; REPEALER.] Laws 1965, chapter 174; 
 18.8   Laws 1973, chapter 587; Laws 1978, chapter 563, section 28; and 
 18.9   Laws 1981, chapter 224, sections 263 and 264, are repealed. 
 18.10     Subd. 8.  [AUSTIN FIRE; REPEALER.] Laws 1943, chapter 170; 
 18.11  Laws 1949, chapter 87; Laws 1951, chapters 45 and 435; Laws 
 18.12  1957, chapter 164; Laws 1963, chapter 36; Laws 1965, chapter 
 18.13  418; Laws 1976, chapter 36; Laws 1978, chapter 579; Laws 1980, 
 18.14  chapter 341, sections 9 and 10; Laws 1981, chapter 224, sections 
 18.15  268 and 270; Laws 1992, chapter 455; and Laws 1994, chapter 490, 
 18.16  are repealed. 
 18.17     Subd. 9.  [AUSTIN POLICE; REPEALER.] Laws 1943, chapter 
 18.18  432; Laws 1976, chapter 36; Laws 1980, chapter 341, sections 9 
 18.19  and 10; and Laws 1981, chapter 224, sections 268 and 270, are 
 18.20  repealed. 
 18.21     Subd. 10.  [BLOOMINGTON POLICE; REPEALER.] Laws 1965, 
 18.22  chapter 498; Laws 1975, chapter 121; Laws 1978, chapter 563, 
 18.23  section 17; Laws 1980, chapter 341, section 6; Laws 1981, 
 18.24  chapter 224, section 240; and Laws 1993, chapter 202, article 1, 
 18.25  are repealed. 
 18.26     Subd. 11.  [BRAINERD POLICE; REPEALER.] Laws 1959, chapter 
 18.27  437, is repealed. 
 18.28     Subd. 12.  [BROOKLYN CENTER POLICE; REPEALER.] Laws 1967, 
 18.29  chapter 736; and Laws 1978, chapter 563, section 18, are 
 18.30  repealed. 
 18.31     Subd. 13.  [BUHL POLICE; REPEALER.] Laws 1957, chapter 630; 
 18.32  Laws 1975, chapter 425; Laws 1976, chapter 247; Laws 1981, 
 18.33  chapter 68, section 43; Laws 1982, chapter 578, article II, 
 18.34  section 1, subdivision 8; Laws 1984, chapter 574, sections 18 
 18.35  and 20; Laws 1985, chapter 261, section 18; and Laws 1986, 
 18.36  chapter 458, section 23, are repealed. 
 19.1      Subd. 14.  [CHISHOLM FIRE; REPEALER.] Laws 1935, chapter 
 19.2   208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 
 19.3   Laws 1947, chapter 329; Laws 1951, chapter 144; Laws 1953, 
 19.4   chapter 391; Laws 1955, chapters 293 and 827; Laws 1961, chapter 
 19.5   631; Laws 1971, chapter 809; Laws 1973, chapter 433; Laws 1976, 
 19.6   chapter 78; Laws 1978, chapter 648; Laws 1979, chapter 131, 
 19.7   section 3; Laws 1981, chapter 68, sections 36 and 37; and Laws 
 19.8   1991, chapter 269, article 2, section 12, are repealed. 
 19.9      Subd. 15.  [CHISHOLM POLICE; REPEALER.] Laws 1945, chapter 
 19.10  74; Laws 1949, chapter 164; Laws 1953, chapter 235; Laws 1959, 
 19.11  chapter 211; Laws 1961, chapter 290; Laws 1971, chapter 810; 
 19.12  Laws 1973, chapter 433; Laws 1976, chapter 78; Laws 1978, 
 19.13  chapters 563, section 27, and 648; Laws 1979, chapter 131, 
 19.14  section 3; Laws 1981, chapters 68, sections 31, 32, and 33; and 
 19.15  224, section 261; and Laws 1991, chapter 269, article 2, section 
 19.16  12, are repealed. 
 19.17     Subd. 16.  [CLOQUET FIRE; REPEALER.] Laws 1941, chapter 
 19.18  196; Laws 1953, chapter 253; Laws 1955, chapter 42; Laws 1961, 
 19.19  chapter 295; Laws 1965, chapter 594; Laws 1967, chapter 783; and 
 19.20  Laws 1969, chapter 716, are repealed. 
 19.21     Subd. 17.  [COLUMBIA HEIGHTS FIRE; REPEALER.] Laws 1965, 
 19.22  chapter 605; Laws 1975, chapter 424; Laws 1977, chapter 374, 
 19.23  sections 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 
 19.24  52, 53, 54, 55, 56, 57, 58, 59, and 60; Laws 1978, chapter 563, 
 19.25  sections 29 and 30; and Laws 1981, chapter 224, section 267, are 
 19.26  repealed. 
 19.27     Subd. 18.  [COLUMBIA HEIGHTS POLICE; REPEALER.] Laws 1977, 
 19.28  chapter 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 
 19.29  14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 
 19.30  30, 31, 32, 33, 34, 35, 36, and 37; and Laws 1993, chapter 126, 
 19.31  are repealed. 
 19.32     Subd. 19.  [CROOKSTON FIRE; REPEALER.] Laws 1949, chapter 
 19.33  378; Laws 1957, chapter 144; Laws 1963, chapter 636; Laws 1971, 
 19.34  chapter 51; Laws 1978, chapter 563, sections 24, 25, and 26; 
 19.35  Laws 1981, chapter 224, sections 252 and 253; and Laws 1983, 
 19.36  chapter 291, sections 9, 10, 11, 12, 13, 14, 15, 16, and 17, are 
 20.1   repealed. 
 20.2      Subd. 20.  [CROOKSTON POLICE; REPEALER.] Laws 1976, chapter 
 20.3   85; Laws 1977, chapter 275; Laws 1983, chapter 84, section 1; 
 20.4   and Laws 1984, chapter 574, section 26, are repealed. 
 20.5      Subd. 21.  [CRYSTAL POLICE; REPEALER.] Laws 1963, chapter 
 20.6   619; Laws 1969, chapter 1087; and Laws 1980, chapter 607, 
 20.7   article XV, section 23, are repealed. 
 20.8      Subd. 22.  [DULUTH FIRE; REPEALER.] Laws 1917, chapter 196; 
 20.9   Laws 1919, chapter 515; Laws 1955, chapter 188; Laws 1961, 
 20.10  chapter 186; Laws 1963, chapter 208; Laws 1965, chapter 179; 
 20.11  Laws 1967, chapter 732; Laws 1975, chapter 127; Laws 1976, 
 20.12  chapter 78, section 4; Laws 1977, chapter 164, section 3; Laws 
 20.13  1992, chapter 448, section 1; and Laws 1994, chapter 474, are 
 20.14  repealed. 
 20.15     Subd. 23.  [DULUTH POLICE; REPEALER.] Laws 1915, chapter 
 20.16  68; Laws 1921, chapter 118; Laws 1923, chapter 54; Laws 1925, 
 20.17  chapter 197; Laws 1943, chapter 267; Laws 1949, chapter 153; 
 20.18  Laws 1953, chapter 91; Laws 1955, chapter 187; Laws 1959, 
 20.19  chapter 191; Laws 1975, chapter 408; Laws 1976, chapter 99; Laws 
 20.20  1980, chapter 600, section 11; and Laws 1992, chapter 448, are 
 20.21  repealed.  
 20.22     Subd. 24.  [EVELETH FIRE; REPEALER.] Laws 1935, chapter 
 20.23  208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 
 20.24  Laws 1941, chapters 74 and 182; Laws 1947, chapter 329; Laws 
 20.25  1951, chapter 144; Laws 1953, chapter 391; Laws 1955, chapter 
 20.26  293; Laws 1961, chapter 620; Laws 1963, chapter 670; and Laws 
 20.27  1969, chapter 552, are repealed. 
 20.28     Subd. 25.  [EVELETH POLICE; REPEALER.] Laws 1965, chapter 
 20.29  636; and Laws 1969, chapter 670, are repealed. 
 20.30     Subd. 26.  [FARIBAULT FIRE; REPEALER.] Laws 1947, chapter 
 20.31  43; Laws 1949, chapter 154; Laws 1951, chapter 43; Laws 1957, 
 20.32  chapter 36; Laws 1961, chapter 443; Laws 1967, chapter 807; Laws 
 20.33  1969, chapter 614; Laws 1975, chapter 389; Laws 1984, chapter 
 20.34  574, section 22; Laws 1985, chapter 259, sections 5 and 6; Laws 
 20.35  1985, First Special Session chapter 16, article 2, section 6; 
 20.36  and Laws 1993, chapter 112, section 2, are repealed. 
 21.1      Subd. 27.  [FARIBAULT POLICE; REPEALER.] Laws 1985, chapter 
 21.2   259, sections 5 and 6; Laws 1985, First Special Session chapter 
 21.3   16, article 2, section 6, are repealed. 
 21.4      Subd. 28.  [FRIDLEY FIRE; REPEALER.] Laws 1969, chapter 
 21.5   594, is repealed. 
 21.6      Subd. 29.  [FRIDLEY POLICE; REPEALER.] Laws 1977, chapter 
 21.7   83, is repealed. 
 21.8      Subd. 30.  [HIBBING FIRE; REPEALER.] Laws 1935, chapter 
 21.9   192; Laws 1943, chapter 413; Laws 1945, chapter 182; Laws 1947, 
 21.10  chapter 101; Laws 1951, chapter 48; Laws 1955, chapter 294; Laws 
 21.11  1959, chapter 208; Laws 1967, chapter 816; Laws 1969, chapter 
 21.12  686; Laws 1971, chapter 614; Laws 1975, chapter 254, sections 5 
 21.13  and 6; Laws 1977, chapter 169; Laws 1981, chapter 224, section 
 21.14  260; Laws 1982, chapter 443; Laws 1987, chapter 372, article 2, 
 21.15  sections 7, 8, and 9; and Laws 1991, chapter 269, article 2, 
 21.16  sections 12 and 13, are repealed. 
 21.17     Subd. 31.  [HIBBING POLICE; REPEALER.] Laws 1931, chapter 
 21.18  48; Laws 1933, chapter 122; Laws 1939, chapter 304; Laws 1945, 
 21.19  chapter 300; Laws 1947, chapter 40; Laws 1949, chapter 191; Laws 
 21.20  1951, chapter 243; Laws 1953, chapter 401; Laws 1957, chapter 
 21.21  793; Laws 1965, chapter 536; Laws 1967, chapter 678; Laws 1969, 
 21.22  chapter 672; Laws 1971, chapter 807; Laws 1983, chapter 74; Laws 
 21.23  1987, chapter 372, article 2, section 7; and Laws 1991, chapter 
 21.24  269, article 2, section 12, are repealed. 
 21.25     Subd. 32.  [MANKATO FIRE; REPEALER.] Laws 1949, chapter 
 21.26  144; Laws 1953, chapter 37; Laws 1957, chapter 16; Laws 1971, 
 21.27  chapter 407; Extra Session Laws 1971, chapter 41; Laws 1981, 
 21.28  chapter 224, sections 258 and 259; and Laws 1989, chapter 319, 
 21.29  article 11, section 3, are repealed. 
 21.30     Subd. 33.  [MANKATO POLICE; REPEALER.] Laws 1971, chapter 
 21.31  407; Extra Session Laws 1971, chapter 41; Laws 1981, chapter 
 21.32  224, sections 258 and 259; Laws 1986, chapter 458, section 34; 
 21.33  and Laws 1987, chapter 372, article 2, section 12, are repealed. 
 21.34     Subd. 34.  [MOORHEAD FIRE; REPEALER.] Laws 1951, chapter 
 21.35  499; Laws 1955, chapter 75; Laws 1965, chapter 190; Laws 1969, 
 21.36  chapter 138; Laws 1975, chapter 120; Laws 1978, chapter 563, 
 22.1   sections 12 and 13; Laws 1979, chapter 216, sections 34, 35, 36, 
 22.2   37, 38, 39, 40, 41, 42, 43, and 44; Laws 1981, chapter 224, 
 22.3   section 236; and Laws 1982, chapter 578, article III, section 
 22.4   18, are repealed. 
 22.5      Subd. 35.  [MOORHEAD POLICE; REPEALER.] Laws 1945, chapter 
 22.6   277; Laws 1967, chapter 775; Laws 1978, chapter 563, section 19; 
 22.7   Laws 1979, chapter 216, sections 27, 28, 29, 30, 31, and 44; 
 22.8   Laws 1980, chapter 600, section 16; Laws 1981, chapter 224, 
 22.9   section 243; and Laws 1982, chapter 578, article III, section 
 22.10  18, are repealed. 
 22.11     Subd. 36.  [NEW ULM POLICE; REPEALER.] Laws 1965, chapter 
 22.12  174; Laws 1974, chapter 251; Laws 1981, chapter 224, sections 
 22.13  265 and 266; and Laws 1985, chapter 261, section 20, are 
 22.14  repealed. 
 22.15     Subd. 37.  [RED WING FIRE; REPEALER.] Laws 1953, chapter 
 22.16  348; Laws 1955, chapter 49; Laws 1957, chapter 10; Laws 1961, 
 22.17  chapter 300; Laws 1965, chapter 604; Laws 1973, chapter 359; 
 22.18  Laws 1975, chapter 254, sections 1, 2, 3, and 4; and Laws 1984, 
 22.19  chapter 574, section 24, are repealed. 
 22.20     Subd. 38.  [RED WING POLICE; REPEALER.] Laws 1965, chapter 
 22.21  174; Laws 1973, chapter 346; Laws 1983, chapter 291, section 8; 
 22.22  and Laws 1994, chapter 410, are repealed. 
 22.23     Subd. 39.  [RICHFIELD FIRE; REPEALER.] Laws 1955, chapter 
 22.24  348; Extra Session Laws 1961, chapter 28; Laws 1963, chapter 
 22.25  464; Laws 1967, chapter 798; Laws 1978, chapter 563, sections 20 
 22.26  and 21; Laws 1980, chapter 607, article XV, section 23; Laws 
 22.27  1981, chapter 224, section 244; and Laws 1997, chapter 241, 
 22.28  article 2, sections 2, 3, 4, 5, 6, 9, 10, 13, 14, and 20, are 
 22.29  repealed. 
 22.30     Subd. 40.  [RICHFIELD POLICE; REPEALER.] Laws 1957, chapter 
 22.31  455; Laws 1965, chapter 458; Laws 1978, chapter 563, section 16; 
 22.32  Laws 1980, chapter 607, article XV, section 23; Laws 1981, 
 22.33  chapter 224, section 239; and Laws 1991, chapter 96, are 
 22.34  repealed. 
 22.35     Subd. 41.  [ROCHESTER FIRE; REPEALER.] Laws 1959, chapter 
 22.36  131; Laws 1969, chapter 694; Laws 1978, chapter 563, section 14; 
 23.1   Laws 1980, chapter 600, sections 18 and 22; and Laws 1981, 
 23.2   chapter 224, section 237, are repealed. 
 23.3      Subd. 42.  [ROCHESTER POLICE; REPEALER.] Laws 1969, chapter 
 23.4   641; Laws 1975, chapter 368, section 54; Laws 1978, chapters 
 23.5   563, section 23; and 793, section 96; Laws 1980, chapter 600, 
 23.6   sections 18 and 22; and Laws 1981, chapter 224, section 248, are 
 23.7   repealed. 
 23.8      Subd. 43.  [ST. CLOUD FIRE; REPEALER.] Laws 1961, chapter 
 23.9   343; Laws 1963, chapter 453; Laws 1967, chapter 702; Laws 1974, 
 23.10  chapter 382; Laws 1977, chapter 270; Laws 1978, chapter 690, 
 23.11  sections 9 and 10; and Laws 1982, chapter 402, are repealed. 
 23.12     Subd. 44.  [ST. CLOUD POLICE; REPEALER.] Laws 1973, chapter 
 23.13  432; Laws 1980, chapter 341, sections 2, 3, 4, and 5; Laws 1984, 
 23.14  chapter 574, section 25; and Laws 1999, chapter 222, article 3, 
 23.15  section 6, are repealed. 
 23.16     Subd. 45.  [ST. LOUIS PARK FIRE; REPEALER.] Laws 1967, 
 23.17  chapter 730; Laws 1969, chapter 576; Laws 1978, chapter 563, 
 23.18  section 22; Laws 1981, chapter 224, section 247; and Laws 1985, 
 23.19  chapter 261, sections 32, 33, 34, and 35, are repealed. 
 23.20     Subd. 46.  [ST. LOUIS PARK POLICE; REPEALER.] Laws 1963, 
 23.21  chapter 454; Laws 1980, chapter 600, section 17; Laws 1984, 
 23.22  chapter 574, section 19; and Laws 1990, chapter 589, article 1, 
 23.23  section 7, are repealed. 
 23.24     Subd. 47.  [ST. PAUL FIRE; REPEALER.] Laws 1917, chapter 
 23.25  196; Laws 1919, chapter 515; Laws 1955, chapter 375; Laws 1957, 
 23.26  chapters 256 and 257; Laws 1961, chapter 376; Laws 1963, chapter 
 23.27  221; Laws 1965, chapter 790; Laws 1967, chapters 644 and 708; 
 23.28  Laws 1969, chapters 443, 669, and 671; Laws 1973, chapter 287; 
 23.29  Laws 1975, chapter 423; Laws 1977, chapter 164, section 1; Laws 
 23.30  1981, chapter 68, section 35; Laws 1989, chapter 319, article 
 23.31  11, section 12; Laws 1992, chapters 422 and 563, sections 3, 4, 
 23.32  and 5; Laws 1993, chapter 110; Laws 1996, chapter 448, article 
 23.33  2, section 1; and Laws 1997, chapter 241, article 2, sections 11 
 23.34  and 15, are repealed. 
 23.35     Subd. 48.  [ST. PAUL POLICE; REPEALER.] Special Laws 1889, 
 23.36  chapter 425; Special Laws 1891, chapter 11; Laws 1897, chapters 
 24.1   389 and 390; Laws 1919, chapter 68; Laws 1921, chapter 118; Laws 
 24.2   1923, chapter 54; Laws 1925, chapter 197; Laws 1955, chapter 
 24.3   151; Laws 1961, chapters 434 and 435, section 2; Laws 1963, 
 24.4   chapter 271; Laws 1965, chapter 465; Laws 1969, chapters 442, 
 24.5   668, and 671; Laws 1971, chapter 549; Laws 1973, chapter 286; 
 24.6   Laws 1980, chapter 600, sections 12, 13, 14, and 15; Laws 1981, 
 24.7   chapter 68, section 34; Laws 1983, chapter 47; Laws 1988, 
 24.8   chapter 709, article 8, section 5; Laws 1989, chapter 319, 
 24.9   article 11, sections 2 and 12; Laws 1992, chapters 393, section 
 24.10  1; 563, section 5; and 586, section 1; Laws 1994, chapter 409; 
 24.11  Laws 1996, chapter 448, article 2, section 1; and Laws 1997, 
 24.12  chapter 241, article 2, sections 11 and 15, are repealed. 
 24.13     Subd. 49.  [SOUTH ST. PAUL FIRE; REPEALER] Laws 1943, 
 24.14  chapter 397; Laws 1947, chapter 274; Laws 1949, chapter 281; 
 24.15  Laws 1951, chapters 233 and 420; Laws 1953, chapters 44 and 406; 
 24.16  Laws 1957, chapter 127; Laws 1961, chapter 747; Laws 1963, 
 24.17  chapter 715; Laws 1965, chapter 457; Laws 1969, chapter 849; and 
 24.18  Laws 1971, chapter 178, are repealed. 
 24.19     Subd. 50.  [SOUTH ST. PAUL POLICE; REPEALER.] Laws 1994, 
 24.20  chapter 541, section 3, is repealed. 
 24.21     Subd. 51.  [THIEF RIVER FALLS POLICE; REPEALER.] Laws 1981, 
 24.22  chapters 68, sections 41 and 42; 224, sections 272 and 273; Laws 
 24.23  1985, chapter 261, section 14; and Laws 1992, chapter 431, 
 24.24  section 1, are repealed. 
 24.25     Subd. 52.  [VIRGINIA POLICE; REPEALER.] Laws 1935, chapters 
 24.26  92 and 259; Laws 1937, chapter 197; Laws 1949, chapter 235; Laws 
 24.27  1965, chapter 174; Laws 1982, chapter 574, sections 3, 4, 5, 6, 
 24.28  and 8; Laws 1985, chapter 261, sections 15 and 16; Laws 1989, 
 24.29  chapter 319, article 11, section 4; and Laws 1992, chapter 392, 
 24.30  section 1, are repealed. 
 24.31     Subd. 53.  [WEST ST. PAUL FIRE; REPEALER.] Laws 1961, 
 24.32  chapter 399; Laws 1965, chapter 540; Laws 1982, chapter 610, 
 24.33  sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20; 
 24.34  and Laws 1984, chapter 574, section 33, are repealed. 
 24.35     Subd. 54.  [WEST ST. PAUL POLICE; REPEALER] Laws 1965, 
 24.36  chapter 174; Laws 1967, chapter 751; Laws 1981, chapter 297, 
 25.1   sections 1 and 2; Laws 1987, chapter 372, article 2, section 10; 
 25.2   and Laws 1995, chapter 262, article 10, section 4, are repealed. 
 25.3      Subd. 55.  [WINONA FIRE; REPEALER.] Extra Session Laws 
 25.4   1961, chapter 80; Laws 1963, chapter 443; and Laws 1967, chapter 
 25.5   848, are repealed. 
 25.6      Subd. 56.  [WINONA POLICE; REPEALERS.] Laws 1959, chapter 
 25.7   108; Extra Session Laws 1961, chapter 80; Laws 1977, chapter 
 25.8   429, section 62; Laws 1986, chapter 359, sections 22, 23, 24, 
 25.9   and 25; and Laws 1988, chapter 709, article 9, section 5, are 
 25.10  repealed. 
 25.11     Subd. 57.  [OTHER REPEALER.] Minnesota Statutes 2000, 
 25.12  sections 69.78; 297I.10, subdivision 2; and 423A.03, are 
 25.13  repealed. 
 25.14     Sec. 10.  [EFFECTIVE DATE.] 
 25.15     Sections 1 to 9 are effective on July 1, 2002. 
 25.16                             ARTICLE 2
 25.17                 RETIREMENT PLAN ALLOWABLE SERVICE 
 25.18                     CREDIT FOR STRIKE PERIODS 
 25.19     Section 1.  Minnesota Statutes 2001 Supplement, section 
 25.20  352.01, subdivision 11, is amended to read: 
 25.21     Subd. 11.  [ALLOWABLE SERVICE.] "Allowable service" means:  
 25.22     (1) Service by an employee for which on or before July 1, 
 25.23  1957, the employee was entitled to allowable service credit on 
 25.24  the records of the system by reason of employee contributions in 
 25.25  the form of salary deductions, payments in lieu of salary 
 25.26  deductions, or in any other manner authorized by Minnesota 
 25.27  Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239.
 25.28     (2) Service by an employee for which on or before July 1, 
 25.29  1961, the employee chose to obtain credit for service by making 
 25.30  payments to the fund under Minnesota Statutes 1961, section 
 25.31  352.24. 
 25.32     (3) Except as provided in clauses (8) and (9), service by 
 25.33  an employee after July 1, 1957, for any calendar month in which 
 25.34  the employee is paid salary from which deductions are made, 
 25.35  deposited, and credited in the fund, including deductions made, 
 25.36  deposited, and credited as provided in section 352.041. 
 26.1      (4) Except as provided in clauses (8) and (9), service by 
 26.2   an employee after July 1, 1957, for any calendar month for which 
 26.3   payments in lieu of salary deductions are made, deposited, and 
 26.4   credited in the fund, as provided in section 352.27 and 
 26.5   Minnesota Statutes 1957, section 352.021, subdivision 4. 
 26.6      For purposes of clauses (3) and (4), except as provided in 
 26.7   clauses (8) and (9), any salary paid for a fractional part of 
 26.8   any calendar month, including the month of separation from state 
 26.9   service, is deemed the compensation for the entire calendar 
 26.10  month. 
 26.11     (5) The period of absence from their duties by employees 
 26.12  who are temporarily disabled because of injuries incurred in the 
 26.13  performance of duties and for which disability the state is 
 26.14  liable under the workers' compensation law until the date 
 26.15  authorized by the director for the commencement of payments of a 
 26.16  total and permanent disability benefit from the retirement fund. 
 26.17     (6) Service covered by a refund repaid as provided in 
 26.18  section 352.23 or 352D.05, subdivision 4, except service 
 26.19  rendered as an employee of the adjutant general for which the 
 26.20  person has credit with the federal civil service retirement 
 26.21  system. 
 26.22     (7) Service before July 1, 1978, by an employee of the 
 26.23  transit operating division of the metropolitan transit 
 26.24  commission or by an employee on an authorized leave of absence 
 26.25  from the transit operating division of the metropolitan transit 
 26.26  commission who is employed by the labor organization which is 
 26.27  the exclusive bargaining agent representing employees of the 
 26.28  transit operating division, which was credited by the 
 26.29  metropolitan transit commission-transit operating division 
 26.30  employees retirement fund or any of its predecessor plans or 
 26.31  funds as past, intermediate, future, continuous, or allowable 
 26.32  service as defined in the metropolitan transit 
 26.33  commission-transit operating division employees retirement fund 
 26.34  plan document in effect on December 31, 1977. 
 26.35     (8) Service after July 1, 1983, by an employee who is 
 26.36  employed on a part-time basis for less than 50 percent of full 
 27.1   time, for which the employee is paid salary from which 
 27.2   deductions are made, deposited, and credited in the fund, 
 27.3   including deductions made, deposited, and credited as provided 
 27.4   in section 352.041 or for which payments in lieu of salary 
 27.5   deductions are made, deposited, and credited in the fund as 
 27.6   provided in section 352.27 shall be credited on a fractional 
 27.7   basis either by pay period, monthly, or annually based on the 
 27.8   relationship that the percentage of salary earned bears to a 
 27.9   full-time salary, with any salary paid for the fractional 
 27.10  service credited on the basis of the rate of salary applicable 
 27.11  for a full-time pay period, month, or a full-time year.  For 
 27.12  periods of part-time service that is duplicated service credit, 
 27.13  section 356.30, subdivision 1, clauses (i) and (j), govern. 
 27.14     Allowable service determined and credited on a fractional 
 27.15  basis shall be used in calculating the amount of benefits 
 27.16  payable, but service as determined on a fractional basis must 
 27.17  not be used in determining the length of service required for 
 27.18  eligibility for benefits.  
 27.19     (9) Any period of authorized leave of absence without pay 
 27.20  that does not exceed one year and for which the employee 
 27.21  obtained credit by payment to the fund in lieu of salary 
 27.22  deductions.  To obtain credit, the employee shall pay an amount 
 27.23  equal to the employee and employer contribution rate in section 
 27.24  352.04, subdivisions 2 and 3, multiplied by the employee's 
 27.25  hourly rate of salary on the date of return from leave of 
 27.26  absence and by the days and months of the leave of absence 
 27.27  without pay for which the employee wants allowable service 
 27.28  credit.  The employing department, at its option, may pay the 
 27.29  employer amount on behalf of its employees.  Payments made under 
 27.30  this clause must include interest at an annual rate of 8.5 
 27.31  percent compounded annually from the date of termination of the 
 27.32  leave of absence to the date payment is made unless payment is 
 27.33  completed within one year of the return from leave of absence. 
 27.34     (10) A period purchased under section 356.555. 
 27.35     (11) A period of time during which the employee was on 
 27.36  strike without pay, not to exceed a period of one year, if the 
 28.1   employee makes a payment in lieu of salary deductions or makes a 
 28.2   prior service credit purchase payment, whichever applies.  If 
 28.3   the payment is made within 12 months, the payment by the 
 28.4   employee must be an amount equal to the employee and employer 
 28.5   contribution rates set forth in section 352.04, subdivisions 2 
 28.6   and 3, applied to the employee's rate of salary in effect on the 
 28.7   conclusion of the strike for the period of the strike without 
 28.8   pay, plus compound interest at a monthly rate of 0.71 percent 
 28.9   from the last day of the strike until the date of payment.  If 
 28.10  the payment by the employee is not made within 12 months, the 
 28.11  payment must be in an amount equal to the payment amount 
 28.12  determined under section 356.55 or 356.551, whichever applies. 
 28.13     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
 28.14  353.01, subdivision 16, is amended to read: 
 28.15     Subd. 16.  [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 
 28.16  "Allowable service" means: 
 28.17     (1) service during years of actual membership in the course 
 28.18  of which employee contributions were made, periods covered by 
 28.19  payments in lieu of salary deductions under section 353.35; 
 28.20     (2) service in years during which the public employee was 
 28.21  not a member but for which the member later elected, while a 
 28.22  member, to obtain credit by making payments to the fund as 
 28.23  permitted by any law then in effect; 
 28.24     (3) a period of authorized leave of absence with pay from 
 28.25  which deductions for employee contributions are made, deposited, 
 28.26  and credited to the fund; 
 28.27     (4) a period of authorized personal, parental, or medical 
 28.28  leave of absence without pay, including a leave of absence 
 28.29  covered under the federal Family Medical Leave Act, that does 
 28.30  not exceed one year, and during or for which a member obtained 
 28.31  full or fractional service credit for each month in the leave 
 28.32  period by payments to the fund made in place of salary 
 28.33  deductions.  The payments must be made in an amount or amounts 
 28.34  based on the member's average salary on which deductions were 
 28.35  paid for the last six months of public service, or for that 
 28.36  portion of the last six months while the member was in public 
 29.1   service, to apply to the period in either case that immediately 
 29.2   precedes the commencement of the leave of absence.  If the 
 29.3   employee elects to pay the employee contributions for the period 
 29.4   of any authorized personal, parental, or medical leave of 
 29.5   absence without pay, or for any portion of the leave, the 
 29.6   employee shall also, as a condition to the exercise of the 
 29.7   election, pay to the fund an amount equivalent to the required 
 29.8   employer and the additional employer contributions, if any, for 
 29.9   the employee.  The payment must be made within one year from the 
 29.10  expiration of the leave of absence or within 20 days after 
 29.11  termination of public service under subdivision 11a.  The 
 29.12  employer, if by appropriate action of its governing body, which 
 29.13  is made a part of its official records, and which is adopted 
 29.14  before the date of the first payment of the employee 
 29.15  contribution, may certify to the association in writing its 
 29.16  commitment to pay the employer and additional employer 
 29.17  contributions from the proceeds of a tax levy made under section 
 29.18  353.28.  Payments under this paragraph must include interest at 
 29.19  an annual rate of 8.5 percent compounded annually from the date 
 29.20  of the termination of the leave of absence to the date payment 
 29.21  is made.  An employee shall return to public service and render 
 29.22  a minimum of three months of allowable service in order to be 
 29.23  eligible to pay employee and employer contributions for a 
 29.24  subsequent authorized leave of absence without pay.  Upon 
 29.25  payment, the employee must be granted allowable service credit 
 29.26  for full calendar months or fractions of a month during the 
 29.27  leave period as described in paragraph (d), clauses (1) and (2), 
 29.28  based on the salary or the compensated hours used in computing 
 29.29  the payment amount; 
 29.30     (5) a periodic, repetitive leave that is offered to all 
 29.31  employees of a governmental subdivision.  The leave program may 
 29.32  not exceed 208 hours per annual normal work cycle as certified 
 29.33  to the association by the employer.  A participating member 
 29.34  obtains service credit by making employee contributions in an 
 29.35  amount or amounts based on the member's average salary that 
 29.36  would have been paid if the leave had not been taken.  The 
 30.1   employer shall pay the employer and additional employer 
 30.2   contributions on behalf of the participating member.  The 
 30.3   employee and the employer are responsible to pay interest on 
 30.4   their respective shares at the rate of 8.5 percent a year, 
 30.5   compounded annually, from the end of the normal cycle until full 
 30.6   payment is made.  An employer shall also make the employer and 
 30.7   additional employer contributions, plus 8.5 percent interest, 
 30.8   compounded annually, on behalf of an employee who makes employee 
 30.9   contributions but terminates public service.  The employee 
 30.10  contributions must be made within one year after the end of the 
 30.11  annual normal working cycle or within 20 days after termination 
 30.12  of public service, whichever is sooner.  The association shall 
 30.13  prescribe the manner and forms to be used by a governmental 
 30.14  subdivision in administering a periodic, repetitive leave.  Upon 
 30.15  payment, the member must be granted allowable service credit for 
 30.16  full calendar months or fractions of a month during the leave 
 30.17  period as described in paragraph (d), clauses (1) and (2), based 
 30.18  on the salary or the compensated hours used in computing the 
 30.19  payment amount; 
 30.20     (6) an authorized temporary layoff under subdivision 12.  
 30.21  For temporary layoffs that begin before January 1, 2002, 
 30.22  allowable service credit is limited to three months allowable 
 30.23  service per authorized temporary layoff in one calendar year.  
 30.24  For temporary layoffs that begin on or after January 1, 2002, 
 30.25  allowable service credit for the calendar month in which the 
 30.26  member does not receive salary due to the layoff must be 
 30.27  determined using the following formula: 
 30.28     (i) members who earned one month of allowable service 
 30.29  credit for each of the nine calendar months of compensated 
 30.30  employment with the governmental subdivision authorizing the 
 30.31  layoff that immediately preceded the layoff shall receive one 
 30.32  month of allowable service credit, limited to three months of 
 30.33  allowable service credit per year, for each month of the 
 30.34  temporary layoff; or 
 30.35     (ii) members who earned less than nine months of allowable 
 30.36  service credit in the year of compensated employment with the 
 31.1   governmental subdivision authorizing the layoff that immediately 
 31.2   preceded the layoff shall receive allowable service credit on a 
 31.3   fractional basis for each month of the authorized layoff, 
 31.4   limited to three months of allowable service credit, determined 
 31.5   by dividing the total number of months of service credit earned 
 31.6   for the compensated employment by nine and multiplying the 
 31.7   resulting number by the total number of months in the layoff 
 31.8   period that are not compensated; ~~or~~ 
 31.9      (7) a period during which a member is on an authorized 
 31.10  leave of absence to enter military service in the armed forces 
 31.11  of the United States, provided that the member returns to public 
 31.12  service upon discharge from military service under section 
 31.13  192.262 and pays into the fund employee contributions based upon 
 31.14  the employee's salary at the date of return from military 
 31.15  service.  Payment must be made within three times the length of 
 31.16  the military leave period, or five years of the date of 
 31.17  discharge from the military service, whichever is less.  The 
 31.18  amount of these contributions must be in accord with the 
 31.19  contribution rates and salary limitations, if any, in effect 
 31.20  during the leave, plus interest at an annual rate of 8.5 percent 
 31.21  compounded annually from the date of return to public service to 
 31.22  the date payment is made.  The matching employer contribution 
 31.23  and additional employer contribution under section 353.27, 
 31.24  subdivisions 3 and 3a, must be paid by the governmental 
 31.25  subdivision employing the member upon return to public service 
 31.26  if the member makes the employee contributions.  The 
 31.27  governmental subdivision involved may appropriate money for 
 31.28  those payments.  A member may not receive credit for a voluntary 
 31.29  extension of military service at the instance of the member 
 31.30  beyond the initial period of enlistment, induction, or call to 
 31.31  active duty.  Upon payment, the employee must be granted 
 31.32  allowable service credit for full calendar months or fractions 
 31.33  of a month during the leave period as described in paragraph 
 31.34  (d), clauses (1) and (2), based on the salary or compensated 
 31.35  hours used in computing the payment amount~~.~~; or 
 31.36     (8) a period of time during which a member who is a state 
 32.1   employee was on strike without pay, not to exceed a period of 
 32.2   one year, if the member makes a payment in lieu of salary 
 32.3   deductions or makes a prior service credit purchase payment, 
 32.4   whichever applies.  If the payment is made within 12 months, the 
 32.5   payment by the member must be an amount equal to the employee, 
 32.6   employer, and employer additional contribution rates set forth 
 32.7   in section 353.27, subdivisions 2, 3, and 3a, applied to the 
 32.8   employee's rate of salary in effect on the conclusion of the 
 32.9   strike for the period of the strike without pay, plus compound 
 32.10  interest at a monthly rate of 0.71 percent from the last day of 
 32.11  the strike until the date of payment.  If the payment by the 
 32.12  employee is not made within 12 months, the payment must be in an 
 32.13  amount equal to the payment amount determined under section 
 32.14  356.55 or 356.551, whichever applies. 
 32.15     (b) For calculating benefits under sections 353.30, 353.31, 
 32.16  353.32, and 353.33 for state officers and employees displaced by 
 32.17  the Community Corrections Act, chapter 401, and transferred into 
 32.18  county service under section 401.04, "allowable service" means 
 32.19  combined years of allowable service as defined in paragraph (a), 
 32.20  clauses (1) to (6), and section 352.01, subdivision 11.  
 32.21     (c) For a public employee who has prior service covered by 
 32.22  a local police or firefighters relief association that has 
 32.23  consolidated with the public employees retirement association or 
 32.24  to which section 353.665 applies, and who has elected the type 
 32.25  of benefit coverage provided by the public employees police and 
 32.26  fire fund either under section 353A.08 following the 
 32.27  consolidation or under section 353.665, subdivision 4, 
 32.28  "applicable service" is a period of service credited by the 
 32.29  local police or firefighters relief association as of the 
 32.30  effective date of the consolidation based on law and on bylaw 
 32.31  provisions governing the relief association on the date of the 
 32.32  initiation of the consolidation procedure. 
 32.33     (d) For persons who, after January 1, 2002, either first 
 32.34  become members or terminated membership under subdivision 11b, 
 32.35  and again become members, of the public employees retirement 
 32.36  plan, the public employees police and fire plan under this 
 33.1   chapter, or the local government correctional employee 
 33.2   retirement plan under chapter 353E, whichever applies, 
 33.3   "allowable service" means credit for compensated hours from 
 33.4   which deductions are made, or for which payments are made in 
 33.5   lieu of salary deductions as provided under this subdivision, 
 33.6   and which are deposited and credited in the fund as provided in 
 33.7   section 353.27, determined as follows: 
 33.8      (1) one month of allowable service credit for each month 
 33.9   during which the employee has received salary for 80 or more 
 33.10  compensated hours; or 
 33.11     (2) a fraction of one month of allowable service for each 
 33.12  month for which the employee has received salary for less than 
 33.13  80 compensated hours equal to the percentage relationship that 
 33.14  the number of compensated hours bear to 80 hours. 
 33.15     (e) Elected officials and other public employees who are 
 33.16  compensated solely on an annual basis shall be granted a full 
 33.17  year of credit for each year for which compensation is earned. 
 33.18     (f) Allowable service that is determined and credited on a 
 33.19  fractional basis must be used only in calculating the amount of 
 33.20  benefits payable.  In determining the length of service required 
 33.21  for vesting, a member shall be granted a month of service credit 
 33.22  for each month in which the member received compensation from 
 33.23  which employee contributions were deducted.  For periods of 
 33.24  part-time service that are duplicated service credit, section 
 33.25  356.30, subdivision 1, paragraphs (g) and (h), govern. 
 33.26     (g) No member shall receive more than 12 months of 
 33.27  allowable service credit in a year either for vesting purposes 
 33.28  or for benefit calculation purposes. 
 33.29     (h) "Allowable service" also means a period purchased under 
 33.30  section 356.555. 
 33.31     Sec. 3.  Minnesota Statutes 2001 Supplement, section 
 33.32  354.05, subdivision 13, is amended to read: 
 33.33     Subd. 13.  [ALLOWABLE SERVICE.] "Allowable service" means: 
 33.34     (1) Any service rendered by a teacher for which on or 
 33.35  before July 1, 1957, the teacher's account in the retirement 
 33.36  fund was credited by reason of employee contributions in the 
 34.1   form of salary deductions, payments in lieu of salary 
 34.2   deductions, or in any other manner authorized by Minnesota 
 34.3   Statutes 1953, sections 135.01 to 135.13, as amended by Laws 
 34.4   1955, chapters 361, 549, 550, 611, or 
 34.5      (2) Any service rendered by a teacher for which on or 
 34.6   before July 1, 1961, the teacher elected to obtain credit for 
 34.7   service by making payments to the fund pursuant to Minnesota 
 34.8   Statutes 1980, section 354.09 and section 354.51, or 
 34.9      (3) Any service rendered by a teacher after July 1, 1957, 
 34.10  for any calendar month when the member receives salary from 
 34.11  which deductions are made, deposited and credited in the fund, 
 34.12  or 
 34.13     (4) Any service rendered by a person after July 1, 1957, 
 34.14  for any calendar month where payments in lieu of salary 
 34.15  deductions are made, deposited and credited into the fund as 
 34.16  provided in Minnesota Statutes 1980, section 354.09, subdivision 
 34.17  4, and section 354.53, or 
 34.18     (5) Any service rendered by a teacher for which the teacher 
 34.19  elected to obtain credit for service by making payments to the 
 34.20  fund pursuant to Minnesota Statutes 1980, section 354.09, 
 34.21  subdivisions 1 and 4, sections 354.50, 354.51, Minnesota 
 34.22  Statutes 1957, section 135.41, subdivision 4, Minnesota Statutes 
 34.23  1971, section 354.09, subdivision 2, or Minnesota Statutes, 1973 
 34.24  Supplement, section 354.09, subdivision 3, or 
 34.25     (6) Both service during years of actual membership in the 
 34.26  course of which contributions were currently made and service in 
 34.27  years during which the teacher was not a member but for which 
 34.28  the teacher later elected to obtain credit by making payments to 
 34.29  the fund as permitted by any law then in effect, or 
 34.30     (7) Any service rendered where contributions were made and 
 34.31  no allowable service credit was established because of the 
 34.32  limitations contained in Minnesota Statutes 1957, section 
 34.33  135.09, subdivision 2, as determined by the ratio between the 
 34.34  amounts of money credited to the teacher's account in a fiscal 
 34.35  year and the maximum retirement contribution allowable for that 
 34.36  year, or 
 35.1      (8) A period purchased under section 356.555~~.~~, or 
 35.2      (9) A period of time during which a teacher who is a state 
 35.3   employee was on strike without pay, not to exceed a period of 
 35.4   one year, if the teacher makes a payment in lieu of salary 
 35.5   deductions or makes a prior service credit purchase payment, 
 35.6   whichever applies.  If the payment is made within 12 months, the 
 35.7   payment by the teacher must be an amount equal to the employee 
 35.8   and employer contribution rates set forth in section 354.42, 
 35.9   subdivisions 2 and 3, applied to the teacher's rate of salary in 
 35.10  effect on the conclusion of the strike for the period of the 
 35.11  strike without pay, plus compound interest at a monthly rate of 
 35.12  0.71 percent from the last day of the strike until the date of 
 35.13  payment.  If the payment by the employee is not made within 12 
 35.14  months, the payment must be in an amount equal to the payment 
 35.15  amount determined under section 356.55 or 356.551, whichever 
 35.16  applies. 
 35.17     Sec. 4.  [EFFECTIVE DATE.] 
 35.18     (a) Sections 1, 2, and 3 are effective retroactive to July 
 35.19  1, 2001. 
 35.20     (b) The authority to obtain credit for allowable service 
 35.21  under section 1, clause (11); section 2, paragraph (a), clause 
 35.22  (8); and section 3, clause (9), expires 12 months after the date 
 35.23  of enactment. 
 35.24                             ARTICLE 3
 35.25                    PERA MEMBERSHIP ELIGIBILITY
 35.26                    AND SERVICE CREDIT PRORATION 
 35.27     Section 1.  Minnesota Statutes 2001 Supplement, section 
 35.28  353.01, subdivision 2a, is amended to read: 
 35.29     Subd. 2a.  [INCLUDED EMPLOYEES.] (a) Public employees whose 
 35.30  salary from one governmental subdivision exceeds $425 in any 
 35.31  month shall participate as members of the association.  If the 
 35.32  salary is less than $425 in a subsequent month, the employee 
 35.33  retains membership eligibility.  Eligible public employees shall 
 35.34  participate as members of the association with retirement 
 35.35  coverage by the public employees retirement plan or the public 
 35.36  employees police and fire retirement plan under this chapter, or 
 36.1   the local government correctional employees retirement plan 
 36.2   under chapter 353E, whichever applies, as a condition of their 
 36.3   employment on the first day of employment unless they: 
 36.4      (1) are specifically excluded under subdivision 2b; 
 36.5      (2) do not exercise their option to elect retirement 
 36.6   coverage in the association as provided in subdivision 2d, 
 36.7   paragraph (a); or 
 36.8      (3) are employees of the governmental subdivisions listed 
 36.9   in subdivision 2d, paragraph (b), where the governmental 
 36.10  subdivision has not elected to participate as a governmental 
 36.11  subdivision covered by the association. 
 36.12     (b) A public employee who was a member of the association 
 36.13  on June 30, 2002, based on employment that qualified for 
 36.14  membership coverage by the public employees retirement plan or 
 36.15  the public employees police and fire plan under this chapter, or 
 36.16  the local government correctional employees retirement plan 
 36.17  under chapter 353E as of June 30, 2002, retains that membership 
 36.18  until the employee terminates public employment under 
 36.19  subdivision 11a or terminates membership under subdivision 11b. 
 36.20     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
 36.21  353.01, subdivision 2b, is amended to read: 
 36.22     Subd. 2b.  [EXCLUDED EMPLOYEES.] The following public 
 36.23  employees are not eligible to participate as members of the 
 36.24  association with retirement coverage by the public employees 
 36.25  retirement plan, the local government correctional employees 
 36.26  retirement plan under chapter 353E, or the public employees 
 36.27  police and fire retirement plan: 
 36.28     (1) public officers, other than county sheriffs, who are 
 36.29  elected to a governing body, or persons who are appointed to 
 36.30  fill a vacancy in an elective office of a governing body, whose 
 36.31  term of office first commences on or after July 1, 2002, for the 
 36.32  service to be rendered in that elective position.  Elected 
 36.33  governing body officials who were active members of the 
 36.34  association's coordinated or basic retirement plans as of June 
 36.35  30, 2002, continue participation throughout incumbency in office 
 36.36  until termination of public service occurs as defined in 
 37.1   subdivision 11a; 
 37.2      (2) election officers or election judges; 
 37.3      (3) patient and inmate personnel who perform services for a 
 37.4   governmental subdivision; 
 37.5      (4) employees who are hired for a temporary position under 
 37.6   subdivision 12a, and employees who resign from a nontemporary 
 37.7   position and accept a temporary position within 30 days in the 
 37.8   same governmental subdivision.  An employer must not apply the 
 37.9   definition of temporary position so as to exclude employees who 
 37.10  are hired to fill positions that are permanent or that are for 
 37.11  an unspecified period but who are serving a probationary period 
 37.12  at the start of the employment.  If the period of employment 
 37.13  extends beyond six consecutive months and the employee earns 
 37.14  more than $425 from one governmental subdivision in any calendar 
 37.15  month, the department head shall report the employee for 
 37.16  membership and require employee deductions be made on behalf of 
 37.17  the employee under section 353.27, subdivision 4. 
 37.18     The membership eligibility of an employee who resigns or is 
 37.19  dismissed from a temporary position and within 30 days accepts 
 37.20  another temporary position in the same governmental subdivision 
 37.21  is determined on the total length of employment rather than on 
 37.22  each separate position.  Membership eligibility of an employee 
 37.23  who holds concurrent temporary and nontemporary positions in one 
 37.24  governmental subdivision is determined by the length of 
 37.25  employment and salary of each separate position; 
 37.26     (5) employees who are employed by reason of work emergency 
 37.27  caused by fire, flood, storm, or similar disaster; 
 37.28     (6) employees who by virtue of their employment in one 
 37.29  governmental subdivision are required by law to be a member of 
 37.30  and to contribute to any of the plans or funds administered by 
 37.31  the Minnesota state retirement system, the teachers retirement 
 37.32  association, the Duluth teachers retirement fund association, 
 37.33  the Minneapolis teachers retirement association, the St. Paul 
 37.34  teachers retirement fund association, the Minneapolis employees 
 37.35  retirement fund, or any police or firefighters relief 
 37.36  association governed by section 69.77 that has not consolidated 
 38.1   with the public employees retirement association, or any local 
 38.2   police or firefighters consolidation account but who have not 
 38.3   elected the type of benefit coverage provided by the public 
 38.4   employees police and fire fund under sections 353A.01 to 
 38.5   353A.10, or any persons covered by section 353.665, subdivision 
 38.6   4, 5, or 6, who have not elected public employees police and 
 38.7   fire plan benefit coverage.  This clause must not be construed 
 38.8   to prevent a person from being a member of and contributing to 
 38.9   the public employees retirement association and also belonging 
 38.10  to and contributing to another public pension fund for other 
 38.11  service occurring during the same period of time.  A person who 
 38.12  meets the definition of "public employee" in subdivision 2 by 
 38.13  virtue of other service occurring during the same period of time 
 38.14  becomes a member of the association unless contributions are 
 38.15  made to another public retirement fund on the salary based on 
 38.16  the other service or to the teachers retirement association by a 
 38.17  teacher as defined in section 354.05, subdivision 2; 
 38.18     (7) persons who are members of a religious order and are 
 38.19  excluded from coverage under the federal Old Age, Survivors, 
 38.20  Disability, and Health Insurance Program for the performance of 
 38.21  service as specified in United States Code, title 42, section 
 38.22  410(a)(8)(A), as amended through January 1, 1987, if no 
 38.23  irrevocable election of coverage has been made under section 
 38.24  3121(r) of the Internal Revenue Code of 1954, as amended; 
 38.25     (8) employees ~~who at the time they are hired by a~~ of a 
 38.26  governmental subdivision who have not reached the age of 23 and 
 38.27  are enrolled on a full-time basis to attend or are attending 
 38.28  classes on a full-time basis at an accredited school, college, 
 38.29  or university in an undergraduate, graduate, or 
 38.30  professional-technical program, or a public or charter high 
 38.31  school~~, if the employment is predicated on the student status of~~ 
 38.32  ~~the individual~~; 
 38.33     (9) resident physicians, medical interns, and pharmacist 
 38.34  residents and pharmacist interns who are serving in a degree or 
 38.35  residency program in public hospitals; 
 38.36     (10) students who are serving in an internship or residency 
 39.1   program sponsored by an accredited educational institution; 
 39.2      (11) persons who hold a part-time adult supplementary 
 39.3   technical college license who render part-time teaching service 
 39.4   in a technical college; 
 39.5      (12) except for employees of Hennepin county, foreign 
 39.6   citizens working for a governmental subdivision with a work 
 39.7   permit of less than three years, or an H-1b visa valid for less 
 39.8   than three years of employment.  Upon notice to the association 
 39.9   that the work permit or visa extends beyond the three-year 
 39.10  period, the foreign citizens are ~~eligible~~ to be reported for 
 39.11  membership from the date of the extension; 
 39.12     (13) public hospital employees who elected not to 
 39.13  participate as members of the association before 1972 and who 
 39.14  did not elect to participate from July 1, 1988, to October 1, 
 39.15  1988; 
 39.16     (14) except as provided in section 353.86, volunteer 
 39.17  ambulance service personnel, as defined in subdivision 35, but 
 39.18  persons who serve as volunteer ambulance service personnel may 
 39.19  still qualify as public employees under subdivision 2 and may be 
 39.20  members of the public employees retirement association and 
 39.21  participants in the public employees retirement fund or the 
 39.22  public employees police and fire fund, whichever applies, on the 
 39.23  basis of compensation received from public employment service 
 39.24  other than service as volunteer ambulance service personnel; 
 39.25     (15) except as provided in section 353.87, volunteer 
 39.26  firefighters, as defined in subdivision 36, engaging in 
 39.27  activities undertaken as part of volunteer firefighter duties; 
 39.28  provided that a person who is a volunteer firefighter may still 
 39.29  qualify as a public employee under subdivision 2 and may be a 
 39.30  member of the public employees retirement association and a 
 39.31  participant in the public employees retirement fund or the 
 39.32  public employees police and fire fund, whichever applies, on the 
 39.33  basis of compensation received from public employment activities 
 39.34  other than those as a volunteer firefighter; 
 39.35     (16) pipefitters and associated trades personnel employed 
 39.36  by independent school district No. 625, St. Paul, with coverage 
 40.1   under a collective bargaining agreement by the pipefitters local 
 40.2   455 pension plan who were either first employed after May 1, 
 40.3   1997, or, if first employed before May 2, 1997, elected to be 
 40.4   excluded under Laws 1997, chapter 241, article 2, section 12; 
 40.5      (17) electrical workers, plumbers, carpenters, and 
 40.6   associated trades personnel employed by independent school 
 40.7   district No. 625, St. Paul, or the city of St. Paul, who have 
 40.8   retirement coverage under a collective bargaining agreement by 
 40.9   the electrical workers local 110 pension plan, the united 
 40.10  association plumbers local 34 pension plan, or the carpenters 
 40.11  local 87 pension plan who were either first employed after May 
 40.12  1, 2000, or, if first employed before May 2, 2000, elected to be 
 40.13  excluded under Laws 2000, chapter 461, article 7, section 5; 
 40.14     (18) bricklayers, allied craftworkers, cement masons, 
 40.15  glaziers, glassworkers, painters, allied tradesworkers, and 
 40.16  plasterers employed by the city of St. Paul or independent 
 40.17  school district No. 625, St. Paul, with coverage under a 
 40.18  collective bargaining agreement by the bricklayers and allied 
 40.19  craftworkers local 1 pension plan, the cement masons local 633 
 40.20  pension plan, the glaziers and glassworkers local L-1324 pension 
 40.21  plan, the painters and allied trades local 61 pension plan, or 
 40.22  the Twin Cities plasterers local 265 pension plan who were 
 40.23  either first employed after May 1, 2001, or if first employed 
 40.24  before May 2, 2001, elected to be excluded under Laws 2001, 
 40.25  First Special Session chapter 10, article 10, section 6; 
 40.26     (19) plumbers employed by the metropolitan airports 
 40.27  commission, with coverage under a collective bargaining 
 40.28  agreement by the plumbers local 34 pension plan, who either were 
 40.29  first employed after May 1, 2001, or if first employed before 
 40.30  May 2, 2001, elected to be excluded under Laws 2001, First 
 40.31  Special Session chapter 10, article 10, section 6; 
 40.32     (20) employees who are hired after June 30, 2002, to fill 
 40.33  seasonal positions under subdivision 12b which are limited in 
 40.34  duration by the employer to 185 consecutive calendar days or 
 40.35  less in each ~~business~~ year of employment with the governmental 
 40.36  subdivision; 
 41.1      (21) persons who are provided supported employment or 
 41.2   work-study positions by a governmental subdivision and who 
 41.3   participate in an employment or industries program maintained 
 41.4   for the benefit of these persons where the governmental 
 41.5   subdivision limits the position's duration to three years or 
 41.6   less, including persons participating in a federal or state 
 41.7   subsidized on-the-job training, work experience, senior citizen, 
 41.8   youth, or unemployment relief program where the training or work 
 41.9   experience is not provided as a part of, or for, future 
 41.10  permanent public employment; 
 41.11     (22) independent contractors and the employees of 
 41.12  independent contractors; and 
 41.13     (23) reemployed annuitants of the association during the 
 41.14  course of that reemployment. 
 41.15     Sec. 3.  Minnesota Statutes 2001 Supplement, section 
 41.16  353.01, subdivision 11b, is amended to read: 
 41.17     Subd. 11b.  [TERMINATION OF MEMBERSHIP.] (a) "Termination 
 41.18  of membership" means the conclusion of membership in the 
 41.19  association and occurs: 
 41.20     (1) upon termination of public service under subdivision 
 41.21  11a; 
 41.22     (2) when a member does not return to work within 30 days of 
 41.23  the expiration of an authorized temporary layoff under 
 41.24  subdivision 12 or an authorized leave of absence under 
 41.25  subdivision 31 as evidenced by the appropriate record filed by 
 41.26  the governmental subdivision; or 
 41.27     (3) when a person files a written election to discontinue 
 41.28  employee deductions under section 353.27, subdivision 7, 
 41.29  paragraph (a), clause (1). 
 41.30     (b) The termination of membership must be reported to the 
 41.31  association by the governmental subdivision. 
 41.32     (c) If the employee subsequently returns to a position in 
 41.33  the same governmental subdivision, the employee shall not again 
 41.34  be required to earn a salary in excess of $425 per month to 
 41.35  qualify for membership, unless the employee has taken a refund 
 41.36  of accumulated employee deduction plus interest under section 
 42.1   353.34, subdivision 1. 
 42.2      Sec. 4.  Minnesota Statutes 2001 Supplement, section 
 42.3   353.01, subdivision 16, is amended to read: 
 42.4      Subd. 16.  [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 
 42.5   "Allowable service" means: 
 42.6      (1) service during years of actual membership in the course 
 42.7   of which employee contributions were made, periods covered by 
 42.8   payments in lieu of salary deductions under section 353.35; 
 42.9      (2) service in years during which the public employee was 
 42.10  not a member but for which the member later elected, while a 
 42.11  member, to obtain credit by making payments to the fund as 
 42.12  permitted by any law then in effect; 
 42.13     (3) a period of authorized leave of absence with pay from 
 42.14  which deductions for employee contributions are made, deposited, 
 42.15  and credited to the fund; 
 42.16     (4) a period of authorized personal, parental, or medical 
 42.17  leave of absence without pay, including a leave of absence 
 42.18  covered under the federal Family Medical Leave Act, that does 
 42.19  not exceed one year, and during or for which a member obtained 
 42.20  ~~full or fractional~~ service credit for each month in the leave 
 42.21  period by payments to the fund made in place of salary 
 42.22  deductions.  The payments must be made in an amount or amounts 
 42.23  based on the member's average salary on which deductions were 
 42.24  paid for the last six months of public service, or for that 
 42.25  portion of the last six months while the member was in public 
 42.26  service, to apply to the period in either case that immediately 
 42.27  precedes the commencement of the leave of absence.  If the 
 42.28  employee elects to pay the employee contributions for the period 
 42.29  of any authorized personal, parental, or medical leave of 
 42.30  absence without pay, or for any portion of the leave, the 
 42.31  employee shall also, as a condition to the exercise of the 
 42.32  election, pay to the fund an amount equivalent to the required 
 42.33  employer and the additional employer contributions, if any, for 
 42.34  the employee.  The payment must be made within one year from the 
 42.35  expiration of the leave of absence or within 20 days after 
 42.36  termination of public service under subdivision 11a, whichever 
 43.1   is earlier.  The employer, ~~if~~ by appropriate action of its 
 43.2   governing body~~,~~ which is made a part of its official records~~,~~ 
 43.3   and which is adopted before the date of the first payment of the 
 43.4   employee contribution, may certify to the association in writing 
 43.5   its commitment to pay the employer and additional employer 
 43.6   contributions from the proceeds of a tax levy made under section 
 43.7   353.28.  Payments under this paragraph must include interest at 
 43.8   an annual rate of 8.5 percent compounded annually from the date 
 43.9   of the termination of the leave of absence to the date payment 
 43.10  is made.  An employee shall return to public service and render 
 43.11  a minimum of three months of allowable service in order to be 
 43.12  eligible to pay employee and employer contributions for a 
 43.13  subsequent authorized leave of absence without pay.  Upon 
 43.14  payment, the employee must be granted allowable service credit 
 43.15  for ~~full calendar months or fractions of a month during~~ the 
 43.16  ~~leave~~ purchased period ~~as described in paragraph (d), clauses (1)~~
 43.17  ~~and (2), based on the salary or the compensated hours used in~~ 
 43.18  ~~computing the payment amount~~; 
 43.19     (5) a periodic, repetitive leave that is offered to all 
 43.20  employees of a governmental subdivision.  The leave program may 
 43.21  not exceed 208 hours per annual normal work cycle as certified 
 43.22  to the association by the employer.  A participating member 
 43.23  obtains service credit by making employee contributions in an 
 43.24  amount or amounts based on the member's average salary that 
 43.25  would have been paid if the leave had not been taken.  The 
 43.26  employer shall pay the employer and additional employer 
 43.27  contributions on behalf of the participating member.  The 
 43.28  employee and the employer are responsible to pay interest on 
 43.29  their respective shares at the rate of 8.5 percent a year, 
 43.30  compounded annually, from the end of the normal cycle until full 
 43.31  payment is made.  An employer shall also make the employer and 
 43.32  additional employer contributions, plus 8.5 percent interest, 
 43.33  compounded annually, on behalf of an employee who makes employee 
 43.34  contributions but terminates public service.  The employee 
 43.35  contributions must be made within one year after the end of the 
 43.36  annual normal working cycle or within 20 days after termination 
 44.1   of public service, whichever is sooner.  The association shall 
 44.2   prescribe the manner and forms to be used by a governmental 
 44.3   subdivision in administering a periodic, repetitive leave.  Upon 
 44.4   payment, the member must be granted allowable service credit for 
 44.5   ~~full calendar months or fractions of a month during~~ the ~~leave~~ 
 44.6   purchased period ~~as described in paragraph (d), clauses (1) and~~ 
 44.7   ~~(2), based on the salary or the compensated hours used in~~ 
 44.8   ~~computing the payment amount~~; 
 44.9      (6) an authorized temporary layoff under subdivision 12~~.~~  
 44.10  ~~For temporary layoffs that begin before January 1, 2002,~~ 
 44.11  ~~allowable service credit is~~, limited to three months allowable 
 44.12  service per authorized temporary layoff in one calendar year.  
 44.13  ~~For temporary layoffs that begin on or after January 1, 2002,~~ 
 44.14  ~~allowable service credit for the calendar month in which the~~ 
 44.15  ~~member does not receive salary due to the layoff must be~~ 
 44.16  ~~determined using the following formula:~~ 
 44.17     ~~(i) members who earned one month of allowable service~~ 
 44.18  ~~credit for each of the nine calendar months of compensated~~ 
 44.19  ~~employment with the governmental subdivision authorizing the~~ 
 44.20  ~~layoff that immediately preceded the layoff shall receive one~~ 
 44.21  ~~month of allowable service credit, limited to three months of~~ 
 44.22  ~~allowable service credit per year, for each month of the~~ 
 44.23  ~~temporary layoff; or~~ 
 44.24     ~~(ii) members who earned less than nine months of allowable~~ 
 44.25  ~~service credit in the year of compensated employment with the~~ 
 44.26  ~~governmental subdivision authorizing the layoff that immediately~~ 
 44.27  ~~preceded the layoff shall receive allowable service credit on a~~ 
 44.28  ~~fractional basis for each month of the authorized layoff,~~ 
 44.29  ~~limited to three months of allowable service credit, determined~~ 
 44.30  ~~by dividing the total number of months of service credit earned~~ 
 44.31  ~~for the compensated employment by nine and multiplying the~~ 
 44.32  ~~resulting number by the total number of months in the layoff~~ 
 44.33  ~~period that are not compensated~~ An employee who has received the 
 44.34  maximum service credit allowed for an authorized temporary 
 44.35  layoff must return to public service and must obtain a minimum 
 44.36  of three months of allowable service subsequent to the layoff in 
 45.1   order to receive allowable service for a subsequent authorized 
 45.2   temporary layoff; or 
 45.3      (7) a period during which a member is on an authorized 
 45.4   leave of absence to enter military service in the armed forces 
 45.5   of the United States~~, provided that~~ if the member returns to 
 45.6   public service upon discharge from military service under 
 45.7   section 192.262 and pays into the fund employee contributions 
 45.8   based upon the employee's salary at the date of return from 
 45.9   military service.  Payment must be made within a period that is 
 45.10  three times the length of the military leave period, or within 
 45.11  five years of the date of discharge from the military service, 
 45.12  whichever is less.  Payment may not be accepted following 20 
 45.13  days after termination of public service under subdivision 11a.  
 45.14  The amount of these contributions must be in accord with the 
 45.15  contribution rates and salary limitations, if any, in effect 
 45.16  during the leave, plus interest at an annual rate of 8.5 percent 
 45.17  compounded annually from the date of return to public service to 
 45.18  the date payment is made.  The ~~matching~~ corresponding employer 
 45.19  contribution, and additional employer contribution ~~under section~~ 
 45.20  ~~353.27, subdivisions 3 and 3a~~, if applicable, must be paid by 
 45.21  the governmental subdivision employing the member upon the 
 45.22  person's return to public service if the member makes the 
 45.23  employee contributions.  The governmental subdivision involved 
 45.24  may appropriate money for those payments.  A member may not 
 45.25  receive credit for a voluntary extension of military service at 
 45.26  the instance of the member beyond the initial period of 
 45.27  enlistment, induction, or call to active duty.  Upon payment, 
 45.28  the employee must be granted allowable service credit for ~~full~~ 
 45.29  ~~calendar months or fractions of a month during~~ the ~~leave~~ 
 45.30  purchased period ~~as described in paragraph (d), clauses (1) and~~ 
 45.31  ~~(2), based on the salary or compensated hours used in computing~~ 
 45.32  ~~the payment amount~~. 
 45.33     (b) For calculating benefits under sections 353.30, 353.31, 
 45.34  353.32, and 353.33 for state officers and employees displaced by 
 45.35  the Community Corrections Act, chapter 401, and transferred into 
 45.36  county service under section 401.04, "allowable service" 
 46.1   means the combined years of allowable service as defined in 
 46.2   paragraph (a), clauses (1) to (6), and section 352.01, 
 46.3   subdivision 11.  
 46.4      (c) For a public employee who has prior service covered by 
 46.5   a local police or firefighters relief association that has 
 46.6   consolidated with the public employees retirement association or 
 46.7   to which section 353.665 applies, and who has elected the type 
 46.8   of benefit coverage provided by the public employees police and 
 46.9   fire fund either under section 353A.08 following the 
 46.10  consolidation or under section 353.665, subdivision 4, 
 46.11  "applicable service" is a period of service credited by the 
 46.12  local police or firefighters relief association as of the 
 46.13  effective date of the consolidation based on law and on bylaw 
 46.14  provisions governing the relief association on the date of the 
 46.15  initiation of the consolidation procedure. 
 46.16     (d) ~~For persons who, after January 1, 2002, either first~~ 
 46.17  ~~become members or terminated membership under subdivision 11b,~~ 
 46.18  ~~and again become members, of the public employees retirement~~ 
 46.19  ~~plan, the public employees police and fire plan under this~~ 
 46.20  ~~chapter, or the local government correctional employee~~ 
 46.21  ~~retirement plan under chapter 353E, whichever applies,~~ 
 46.22  ~~"allowable service" means credit for compensated hours from~~ 
 46.23  ~~which deductions are made, or for which payments are made in~~ 
 46.24  ~~lieu of salary deductions as provided under this subdivision,~~ 
 46.25  ~~and which are deposited and credited in the fund as provided in~~ 
 46.26  ~~section 353.27, determined as follows:~~ 
 46.27     ~~(1) one month of allowable service credit for each month~~ 
 46.28  ~~during which the employee has received salary for 80 or more~~ 
 46.29  ~~compensated hours; or~~ 
 46.30     ~~(2) a fraction of one month of allowable service for each~~ 
 46.31  ~~month for which the employee has received salary for less than~~ 
 46.32  ~~80 compensated hours equal to the percentage relationship that~~ 
 46.33  ~~the number of compensated hours bear to 80 hours.~~ 
 46.34     ~~(e) Elected officials and other public employees who are~~ 
 46.35  ~~compensated solely on an annual basis shall be granted a full~~ 
 46.36  ~~year of credit for each year for which compensation is earned.~~ 
 47.1      ~~(f) Allowable service that is determined and credited on a~~ 
 47.2   ~~fractional basis must be used only in calculating the amount of~~ 
 47.3   ~~benefits payable.  In determining the length of service required~~ 
 47.4   ~~for vesting, a member shall be granted a month of service credit~~ 
 47.5   ~~for each month in which the member received compensation from~~ 
 47.6   ~~which employee contributions were deducted.  For periods of~~ 
 47.7   ~~part-time service that are duplicated service credit, section~~ 
 47.8   ~~356.30, subdivision 1, paragraphs (g) and (h), govern.~~ 
 47.9      ~~(g)~~ No member ~~shall~~ may receive more than 12 months of 
 47.10  allowable service credit in a year either for vesting purposes 
 47.11  or for benefit calculation purposes. 
 47.12     ~~(h)~~ (e) "Allowable service" also means a period purchased 
 47.13  under section 356.555. 
 47.14     Sec. 5.  Minnesota Statutes 2000, section 353.01, is 
 47.15  amended by adding a subdivision to read:  
 47.16     Subd. 40.  [REDUCED SALARY DURING PERIOD OF WORKERS' 
 47.17  COMPENSATION.] (a) A member who is receiving temporary workers' 
 47.18  compensation payments related to the member's service to the 
 47.19  public employer and who either is receiving a reduced salary 
 47.20  from the employer during that period or is receiving no salary 
 47.21  from the employer during that period is entitled to receive 
 47.22  allowable service and salary credit for the period of time that 
 47.23  the member is receiving the workers' compensation payments upon 
 47.24  making the payments specified in this subdivision. 
 47.25     (b) The differential salary amount is the difference 
 47.26  between the average rate of salary received by the member, if 
 47.27  any, during the period of time that the member is collecting 
 47.28  temporary workers' compensation payments and the average rate of 
 47.29  salary of the member on which contributions to the applicable 
 47.30  plan were made during the period of the last six months of 
 47.31  covered employment occurring immediately before beginning to 
 47.32  collect the temporary workers' compensation payments, applied to 
 47.33  the member's normal employment period, measured in hours or 
 47.34  otherwise, as applicable. 
 47.35     (c) To receive eligible service credit, the member shall 
 47.36  pay an amount equal to the applicable employee contribution rate 
 48.1   under section 353.27, subdivision 2; 353.65, subdivision 2; or 
 48.2   353E.03, subdivision 1, as applicable, multiplied by the 
 48.3   differential salary amount; plus an employer equivalent payment 
 48.4   equal to the applicable employer contribution rate in section 
 48.5   353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, 
 48.6   subdivision 2, as applicable, multiplied by the differential 
 48.7   salary amount; plus, if applicable, an equivalent employer 
 48.8   additional amount equal to the additional employer contribution 
 48.9   rate in section 353.27, subdivision 3a, multiplied by the 
 48.10  differential salary amount. 
 48.11     (d) The employer may, by appropriate action of its 
 48.12  governing body and documented in its official records, pay the 
 48.13  employer equivalent contributions and, as applicable, the 
 48.14  equivalent employer additional contributions on behalf of the 
 48.15  member. 
 48.16     (e) Payment under this subdivision must include interest on 
 48.17  the contribution amount or amounts, whichever applies, at an 8.5 
 48.18  percent annual rate, prorated for applicable months from the 
 48.19  date on which the temporary workers' compensation payments 
 48.20  terminate to the date on which the payment or payments are 
 48.21  received by the executive director.  Payment under this 
 48.22  subdivision must be completed within one year after the 
 48.23  termination of the temporary workers' compensation payments to 
 48.24  the member, or within 20 days after the termination of public 
 48.25  service by the employee under subdivision 11a, whichever is 
 48.26  earlier. 
 48.27     Sec. 6.  Minnesota Statutes 2001 Supplement, section 
 48.28  353.27, subdivision 4, is amended to read: 
 48.29     Subd. 4.  [EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS; 
 48.30  MEMBER STATUS.] (a) A representative authorized by the head of 
 48.31  each department shall deduct employee contributions from the 
 48.32  salary of each employee who qualifies for membership under this 
 48.33  chapter and remit payment in a manner prescribed by the 
 48.34  executive director for the aggregate amount of the employee 
 48.35  contributions, the employer contributions and the additional 
 48.36  employer contributions to be received within 14 calendar days.  
 49.1   The head of each department or the person's designee shall for 
 49.2   each pay period submit to the association a salary deduction 
 49.3   report in the format prescribed by the executive director.  Data 
 49.4   required to be submitted as part of salary deduction reporting 
 49.5   must include, but are not limited to:  
 49.6      (1) the legal names and social security numbers of 
 49.7   employees who are members; 
 49.8      (2) the amount of each employee's salary deduction; 
 49.9      (3) the amount of salary from which each deduction was 
 49.10  made; 
 49.11     (4) the beginning and ending dates of the payroll period 
 49.12  covered and the date of actual payment; and 
 49.13     (5) adjustments or corrections covering past pay periods~~;~~ 
 49.14  ~~and~~ 
 49.15     ~~(6) the number of compensated hours of each employee during~~ 
 49.16  ~~the payroll period~~.  
 49.17     (b) Employers must furnish the data required for enrollment 
 49.18  for each new employee who qualifies for membership in the format 
 49.19  prescribed by the executive director.  The required enrollment 
 49.20  data on new employees must be submitted to the association prior 
 49.21  to or concurrent with the submission of the initial employee 
 49.22  salary deduction.  The employer shall also report to the 
 49.23  association all member employment status changes, such as leaves 
 49.24  of absence, terminations, and death, and shall report the 
 49.25  effective dates of those changes, on an ongoing basis for the 
 49.26  payroll cycle in which they occur.  The employer shall furnish 
 49.27  data, forms, and reports as may be required by the executive 
 49.28  director for proper administration of the retirement system.  
 49.29  Before implementing new or different computerized reporting 
 49.30  requirements, the executive director shall give appropriate 
 49.31  advance notice to governmental subdivisions to allow time for 
 49.32  system modifications. 
 49.33     (c) Notwithstanding paragraph (a), the association may 
 49.34  provide for less frequent reporting and payments for small 
 49.35  employers. 
 49.36     Sec. 7.  Minnesota Statutes 2001 Supplement, section 
 50.1   353.27, subdivision 11, is amended to read: 
 50.2      Subd. 11.  [EMPLOYERS; REQUIRED TO FURNISH REQUESTED 
 50.3   INFORMATION.] All governmental subdivisions shall furnish 
 50.4   promptly such other information relative to the employment 
 50.5   status of all employees or former employees, including but not 
 50.6   limited to payroll abstracts pertaining to all past and present 
 50.7   employees, as may be requested by the association or its 
 50.8   executive director, including schedules of salaries applicable 
 50.9   to various categories of employment~~, and the number of actual or~~ 
 50.10  ~~estimated compensated hours for employees~~.  In the event payroll 
 50.11  abstract records have been lost or destroyed, for whatever 
 50.12  reason or in whatever manner, so that such schedules of salaries 
 50.13  cannot be furnished therefrom, the employing governmental 
 50.14  subdivision, in lieu thereof, shall furnish to the association 
 50.15  an estimate of the earnings of any employee or former employee 
 50.16  for any period as may be requested by the association or its 
 50.17  executive director. Should the association receive such 
 50.18  schedules of estimated earnings, the executive director is 
 50.19  hereby authorized to use the same as a basis for making whatever 
 50.20  computations might be necessary for determining obligations of 
 50.21  the employee and employer to the retirement fund.  If estimates 
 50.22  are not furnished by the employer pursuant to the request of the 
 50.23  association or its executive director, the association may 
 50.24  estimate the obligations of the employee and employer to the 
 50.25  retirement fund based upon such records as are in its 
 50.26  possession.  Where payroll abstracts have been lost or 
 50.27  destroyed, the governmental agency need not furnish any 
 50.28  information pertaining to employment prior to July 1, 1963.  The 
 50.29  association shall make no estimate of any obligation of any 
 50.30  employee, former employee, or employer covering employment prior 
 50.31  to July 1, 1963. 
 50.32     Sec. 8.  Minnesota Statutes 2000, section 353.64, 
 50.33  subdivision 7a, is amended to read: 
 50.34     Subd. 7a.  [PENSION COVERAGE FOR CERTAIN METROPOLITAN 
 50.35  TRANSIT POLICE OFFICERS.] A person who is employed as a 
 50.36  ~~full-time~~ police officer on or after the first day of the first 
 51.1   payroll period after July 1, 1993, by the metropolitan council 
 51.2   and who is not eligible for coverage under the agreement with 
 51.3   the Secretary of the federal Department of Health and Human 
 51.4   Services making the provisions of the federal Old Age, 
 51.5   Survivors, and Disability Insurance Act because the person's 
 51.6   position is excluded from application under United States Code, 
 51.7   sections 418(d)(5)(A) and 418(d)(8)(D), and under section 
 51.8   355.07, is a member of the public employees police and fire fund 
 51.9   and is considered to be a police officer within the meaning of 
 51.10  this section.  The metropolitan council shall deduct the 
 51.11  employee contribution from the salary of each ~~full-time~~ police 
 51.12  officer as required by section 353.65, subdivision 2, shall make 
 51.13  the employer contribution for each ~~full-time~~ police officer as 
 51.14  required by section 353.65, subdivision 3, and shall meet the 
 51.15  employer recording and reporting requirements in section 353.65, 
 51.16  subdivision 4. 
 51.17     Sec. 9.  [REPEALER.] 
 51.18     Minnesota Statutes 2001 Supplement, section 353.01, 
 51.19  subdivision 39, is repealed. 
 51.20     Sec. 10.  [APPLICATION.] 
 51.21     Section 8 applies in the counties of Anoka, Carver, Dakota, 
 51.22  Hennepin, Ramsey, Scott, and Washington. 
 51.23     Sec. 11.  [EFFECTIVE DATE.] 
 51.24     (a) Except as provided in paragraphs (c) and (d), sections 
 51.25  1, 2, and 3 are effective on July 1, 2002. 
 51.26     (b) Sections 4, 6, 7, and 9 are effective retroactively 
 51.27  from January 1, 2002. 
 51.28     (c) The amendment to Minnesota Statutes, section 353.01, 
 51.29  subdivision 2b, clause (12), in section 2, is effective on the 
 51.30  day after the date on which the governing body of Hennepin 
 51.31  county and the chief clerical officer of the county complete in 
 51.32  a timely manner their compliance with Minnesota Statutes, 
 51.33  section 645.021, subdivisions 2 and 3. 
 51.34     (d) The amendments to Minnesota Statutes, section 353.01, 
 51.35  subdivision 2b, clauses (8) and (20), are effective 
 51.36  retroactively from January 1, 2002. 
 52.1      (e) Section 5 is effective on the day following final 
 52.2   enactment. 
 52.3      (f) Section 8 is effective July 1, 2002, and applies to 
 52.4   salaries earned by part-time metropolitan transit police 
 52.5   officers after June 30, 2002. 
 52.6                              ARTICLE 4 
 52.7                  PERA LOCAL GOVERNMENT CORRECTIONAL
 52.8                    RETIREMENT PLAN MODIFICATIONS
 52.9      Section 1.  Minnesota Statutes 2000, section 353E.02, 
 52.10  subdivision 1, is amended to read: 
 52.11     Subdivision 1.  [RETIREMENT COVERAGE.] ~~Local government~~ 
 52.12  ~~correctional service employees are~~ The members of the local 
 52.13  government correctional service retirement plan established by 
 52.14  this chapter are: 
 52.15     (1) local government correctional service employees as 
 52.16  defined in subdivision 2; and 
 52.17     (2) medical center protection officers as defined in 
 52.18  subdivision 2a. 
 52.19     Sec. 2.  Minnesota Statutes 2000, section 353E.02, is 
 52.20  amended by adding a subdivision to read: 
 52.21     Subd. 2a.  [MEDICAL CENTER PROTECTION OFFICER.] (a) A 
 52.22  medical center protection officer, for purposes of subdivision 
 52.23  1, is a person whom the employer certifies: 
 52.24     (1) is employed by the Hennepin county medical center as a 
 52.25  protection officer; 
 52.26     (2) is directly responsible for the direct security of the 
 52.27  medical center; 
 52.28     (3) is expected to respond to any incidents within the 
 52.29  medical center as part of the person's regular employment duties 
 52.30  and is trained to do so; and 
 52.31     (4) is a "public employee" as defined in section 353.01, 
 52.32  but is not a member of the public employees police and fire plan.
 52.33     (b) The certification required under paragraph (a) must be 
 52.34  made in writing on a form prescribed by the executive director 
 52.35  of the public employees retirement association. 
 52.36     Sec. 3.  Minnesota Statutes 2000, section 353E.03, is 
 53.1   amended to read: 
 53.2      353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.] 
 53.3      Subdivision 1.  [MEMBER CONTRIBUTIONS.] A member of the 
 53.4   local government correctional service ~~employee~~ retirement plan 
 53.5   shall make an employee contribution in an amount equal to ~~6.01~~ 
 53.6   5.83 percent of salary. 
 53.7      Subd. 2.  [EMPLOYER CONTRIBUTIONS.] The employer shall 
 53.8   contribute for a member of the local government correctional 
 53.9   service ~~employee~~ retirement plan an amount equal to ~~9.02~~ 8.75 
 53.10  percent of salary. 
 53.11     Sec. 4.  Laws 2000, chapter 461, article 10, section 3, as 
 53.12  amended by Laws 2001, First Special Session chapter 10, article 
 53.13  3, section 28, is amended to read: 
 53.14     Sec. 3.  [EFFECTIVE DATE.] 
 53.15     Section 1 is effective on the day following final enactment.
 53.16  ~~Section 2 is effective on the first day of the first full pay~~ 
 53.17  ~~period beginning after January 1, 2003.~~ 
 53.18     Sec. 5.  [REPEALER.] 
 53.19     Laws 2000, chapter 461, article 10, section 2, is repealed. 
 53.20     Sec. 6.  [EFFECTIVE DATE.] 
 53.21     (a) Sections 1, 2, and 3 are effective on July 1, 2002. 
 53.22     (b) Section 4 is effective on the day following final 
 53.23  enactment. 
 53.24     (c) Section 5 is effective on August 1, 2002. 
 53.25                             ARTICLE 5
 53.26                        PENSION COVERAGE FOR
 53.27                    PRIVATIZED PUBLIC HOSPITALS
 53.28     Section 1.  Minnesota Statutes 2000, section 353F.02, 
 53.29  subdivision 4, is amended to read: 
 53.30     Subd. 4.  [MEDICAL FACILITY.] "Medical facility" means: 
 53.31     (1) the Glencoe area health center; 
 53.32     (2) the Luverne public hospital; ~~and~~ 
 53.33     (3) the Waconia-Ridgeview medical center~~.~~; and 
 53.34     (4) the Kanabec hospital. 
 53.35     Sec. 2.  [EFFECTIVE DATE.] 
 53.36     Section 1 is effective upon the latter of: 
 54.1      (1) the day after the governing body of Kanabec county and 
 54.2   its chief clerical officer timely complete their compliance with 
 54.3   Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 
 54.4      (2) the first day of the month next following certification 
 54.5   to the Kanabec county board by the executive director of the 
 54.6   public employees retirement association that the actuarial 
 54.7   accrued liability of the special benefit coverage proposed for 
 54.8   extension to the privatized Kanabec hospital employees under 
 54.9   section 1 does not exceed the actuarial gain otherwise to be 
 54.10  accrued by the public employees retirement association, as 
 54.11  calculated by the consulting actuary retained by the legislative 
 54.12  commission on pensions and retirement.  The cost of the 
 54.13  actuarial calculations must be borne by the Kanabec hospital. 
 54.14                             ARTICLE 6
 54.15                       CLOSED CHARTER SCHOOL
 54.16                  UNPAID RETIREMENT CONTRIBUTIONS
 54.17     Section 1.  Minnesota Statutes 2001 Supplement, section 
 54.18  354.05, subdivision 2, is amended to read: 
 54.19     Subd. 2.  [TEACHER.] (a) "Teacher" means: 
 54.20     (1) a person who renders service as a teacher, supervisor, 
 54.21  principal, superintendent, librarian, nurse, counselor, social 
 54.22  worker, therapist, or psychologist in ~~the~~ a public ~~schools~~ 
 54.23  school of the state located outside of the corporate limits of 
 54.24  ~~the cities~~ a city of the first class, or in any charter school, 
 54.25  irrespective of the location of the school, or in any 
 54.26  charitable, penal, or correctional institutions of a 
 54.27  governmental subdivision, or who is engaged in educational 
 54.28  administration in connection with the state public school 
 54.29  system, but excluding the University of Minnesota, whether the 
 54.30  position be a public office or an employment, not including 
 54.31  members or officers of any general governing or managing board 
 54.32  or body; 
 54.33     (2) an employee of the teachers retirement association; 
 54.34     (3) a person who renders teaching service on a part-time 
 54.35  basis and who also renders other services for a single employing 
 54.36  unit.  A person whose teaching service comprises at least 50 
 55.1   percent of the combined employment salary is a member of the 
 55.2   association for all services with the single employing unit.  If 
 55.3   the person's teaching service comprises less than 50 percent of 
 55.4   the combined employment salary, the executive director must 
 55.5   determine whether all or none of the combined service is covered 
 55.6   by the association; or 
 55.7      (4) a person who is not covered by the plans established 
 55.8   under chapter 352D, 354A, or 354B and who is employed by the 
 55.9   board of trustees of the Minnesota state colleges and 
 55.10  universities system in an unclassified position as: 
 55.11     (i) a president, vice-president, or dean; 
 55.12     (ii) a manager or a professional in an academic or an 
 55.13  academic support program other than specified in item (i); 
 55.14     (iii) an administrative or a service support faculty 
 55.15  position; or 
 55.16     (iv) a teacher or a research assistant. 
 55.17     (b) ~~Teacher~~ "Teacher" does not mean: 
 55.18     (1) a person who works for a school or institution as an 
 55.19  independent contractor as defined by the Internal Revenue 
 55.20  Service; 
 55.21     (2) a person employed in subsidized on-the-job training, 
 55.22  work experience or public service employment as an enrollee 
 55.23  under the federal Comprehensive Employment and Training Act from 
 55.24  and after March 30, 1978, unless the person has, as of the later 
 55.25  of March 30, 1978, or the date of employment, sufficient service 
 55.26  credit in the retirement association to meet the minimum vesting 
 55.27  requirements for a deferred retirement annuity, or the employer 
 55.28  agrees in writing on forms prescribed by the executive director 
 55.29  to make the required employer contributions, including any 
 55.30  employer additional contributions, on account of that person 
 55.31  from revenue sources other than funds provided under the federal 
 55.32  Comprehensive Training and Employment Act, or the person agrees 
 55.33  in writing on forms prescribed by the executive director to make 
 55.34  the required employer contribution in addition to the required 
 55.35  employee contribution; 
 55.36     (3) a person holding a part-time adult supplementary 
 56.1   technical college license who renders part-time teaching service 
 56.2   or a customized trainer as defined by the Minnesota state 
 56.3   colleges and universities system in a technical college if (i) 
 56.4   the service is incidental to the regular nonteaching occupation 
 56.5   of the person; and (ii) the applicable technical college 
 56.6   stipulates annually in advance that the part-time teaching 
 56.7   service or customized training service will not exceed 300 hours 
 56.8   in a fiscal year and retains the stipulation in its records; and 
 56.9   (iii) the part-time teaching service or customized training 
 56.10  service actually does not exceed 300 hours in a fiscal year; or 
 56.11     (4) a person exempt from licensure under section 122A.30. 
 56.12     Sec. 2.  Minnesota Statutes 2000, section 354A.011, 
 56.13  subdivision 27, is amended to read: 
 56.14     Subd. 27.  [TEACHER.] (a) "Teacher" means any person who 
 56.15  renders service ~~in~~ for a public school district, other than a 
 56.16  charter school, located in the corporate limits of one of the 
 56.17  cities of the first class which was so classified on January 1, 
 56.18  1979, as any of the following: 
 56.19     ~~(a)~~ (1) a full-time employee in a position for which a 
 56.20  valid license from the state department of children, families, 
 56.21  and learning is required; 
 56.22     ~~(b)~~ (2) an employee of the teachers retirement fund 
 56.23  association located in the city of the first class unless the 
 56.24  employee has exercised the option pursuant to Laws 1955, chapter 
 56.25  10, section 1, to retain membership in the Minneapolis employees 
 56.26  retirement fund established pursuant to chapter 422A; 
 56.27     ~~(c)~~ (3) a part-time employee in a position for which a 
 56.28  valid license from the state department of children, families, 
 56.29  and learning is required; or 
 56.30     ~~(d)~~ (4) a part-time employee in a position for which a 
 56.31  valid license from the state department of children, families, 
 56.32  and learning is required who also renders other nonteaching 
 56.33  services for the school district, unless the board of trustees 
 56.34  of the teachers retirement fund association determines that the 
 56.35  combined employment is on the whole so substantially dissimilar 
 56.36  to teaching service that the service ~~shall~~ may not be covered by 
 57.1   the association. 
 57.2      (b) The term ~~shall~~ does not mean any person who renders 
 57.3   service in the school district as any of the following: 
 57.4      (1) an independent contractor or the employee of an 
 57.5   independent contractor; 
 57.6      (2) an employee who is a full-time teacher covered by the 
 57.7   teachers retirement association or by another teachers 
 57.8   retirement fund association established pursuant to this chapter 
 57.9   or chapter 354; 
 57.10     (3) an employee exempt from licensure pursuant to section 
 57.11  122A.30; 
 57.12     (4) an employee who is a teacher in a technical college 
 57.13  located in a city of the first class unless the person elects 
 57.14  coverage by the applicable first class city teacher retirement 
 57.15  fund association under section 354B.21, subdivision 2; ~~or~~ 
 57.16     (5) a teacher employed by a charter school, irrespective of 
 57.17  the location of the school; or 
 57.18     (6) an employee who is a part-time teacher in a technical 
 57.19  college in a city of the first class and who has elected 
 57.20  coverage by the applicable first class city teacher retirement 
 57.21  fund association under section 354B.21, subdivision 2, but (i) 
 57.22  the teaching service is incidental to the regular nonteaching 
 57.23  occupation of the person; (ii) the applicable technical college 
 57.24  stipulates annually in advance that the part-time teaching 
 57.25  service will not exceed 300 hours in a fiscal year; and (iii) 
 57.26  the part-time teaching actually does not exceed 300 hours in the 
 57.27  fiscal year to which the certification applies.  
 57.28     Sec. 3.  Minnesota Statutes 2000, section 354A.12, 
 57.29  subdivision 3d, is amended to read: 
 57.30     Subd. 3d.  [SUPPLEMENTAL ADMINISTRATIVE EXPENSE 
 57.31  ASSESSMENT.] (a) The active and retired membership of the 
 57.32  Minneapolis teachers retirement fund association and of the St. 
 57.33  Paul teachers retirement fund association is responsible for 
 57.34  defraying supplemental administrative expenses other than 
 57.35  investment expenses of the respective teacher retirement fund 
 57.36  association. 
 58.1      (b) Investment expenses of the teachers retirement fund 
 58.2   association are those expenses incurred by or on behalf of the 
 58.3   retirement fund in connection with the investment of the assets 
 58.4   of the retirement fund other than investment security 
 58.5   transaction costs.  Other administrative expenses are all 
 58.6   expenses incurred by or on behalf of the retirement fund for all 
 58.7   other retirement fund functions other than the investment of 
 58.8   retirement fund assets.  Investment and other administrative 
 58.9   expenses must be accounted for using generally accepted 
 58.10  accounting principles and in a manner consistent with the 
 58.11  comprehensive annual financial report of the teachers retirement 
 58.12  fund association for the immediately previous fiscal year under 
 58.13  section 356.20. 
 58.14     (c) Supplemental administrative expenses other than 
 58.15  investment expenses of a first class city teacher retirement 
 58.16  fund association are those expenses for the fiscal year that: 
 58.17     (1) exceed, for the St. Paul teachers retirement fund 
 58.18  association $443,745, or for the Minneapolis teacher retirement 
 58.19  fund association $671,513, plus, in each case, an additional 
 58.20  amount derived by applying the percentage increase in the 
 58.21  consumer price index for urban wage earners and clerical workers 
 58.22  all items index published by the Bureau of Labor Statistics of 
 58.23  the United States Department of Labor since July 1, 2001, to the 
 58.24  applicable dollar amount; and 
 58.25     (2) exceed the amount computed by applying the most recent 
 58.26  percentage of pay administrative expense amount, other than 
 58.27  investment expenses, for the teachers retirement association 
 58.28  governed by chapter 354 to the covered payroll of the respective 
 58.29  teachers retirement fund association for the fiscal year. 
 58.30     (d) The board of trustees of each first class city teachers 
 58.31  retirement fund association shall allocate the total dollar 
 58.32  amount of supplemental administrative expenses other than 
 58.33  investment expenses determined under paragraph (c), clause (2), 
 58.34  among the various active and retired membership groups of the 
 58.35  teachers retirement fund association and shall assess the 
 58.36  various membership groups their respective share of the 
 59.1   supplemental administrative expenses other than investment 
 59.2   expenses, in amounts determined by the board of trustees.  The 
 59.3   supplemental administrative expense assessments must be paid by 
 59.4   the membership group in a manner determined by the board of 
 59.5   trustees of the respective teachers retirement association.  
 59.6   Supplemental administrative expenses payable by the active 
 59.7   members of the pension plan must be picked up by the employer in 
 59.8   accordance with section 356.62. 
 59.9      (e) With respect to the St. Paul teachers retirement fund 
 59.10  association, the supplemental administrative expense assessment 
 59.11  must be fully disclosed to the various active and retired 
 59.12  membership groups of the teachers retirement fund association.  
 59.13  The chief administrative officer of the St. Paul teachers 
 59.14  retirement fund association shall prepare a supplemental 
 59.15  administrative expense assessment disclosure notice, which must 
 59.16  include the following: 
 59.17     (1) the total amount of administrative expenses of the St. 
 59.18  Paul teachers retirement fund association, the amount of the 
 59.19  investment expenses of the St. Paul teachers retirement fund 
 59.20  association, and the net remaining amount of administrative 
 59.21  expenses of the St. Paul teachers retirement fund association; 
 59.22     (2) the amount of administrative expenses for the St. Paul 
 59.23  teachers retirement fund association that would be equivalent to 
 59.24  the teachers retirement association noninvestment administrative 
 59.25  expense level described in paragraph (c); 
 59.26     (3) the total amount of supplemental administrative 
 59.27  expenses required for assessment calculated under paragraph (c); 
 59.28     (4) the portion of the total amount of the supplemental 
 59.29  administrative expense assessment allocated to each membership 
 59.30  group and the rationale for that allocation; 
 59.31     (5) the manner of collecting the supplemental 
 59.32  administrative expense assessment from each membership group, 
 59.33  the number of assessment payments required during the year, and 
 59.34  the amount of each payment or the procedure used to determine 
 59.35  each payment; and 
 59.36     (6) any other information that the chief administrative 
 60.1   officer determines is necessary to fairly portray the manner in 
 60.2   which the supplemental administrative expense assessment was 
 60.3   determined and allocated. 
 60.4      (f) The disclosure notice must be provided annually in the 
 60.5   annual report of the association. 
 60.6      (g) The supplemental administrative expense assessments 
 60.7   must be deposited in the applicable teachers retirement fund 
 60.8   upon receipt. 
 60.9      (h) Any omitted active membership group assessments that 
 60.10  remain undeducted and unpaid to the teachers retirement fund 
 60.11  association for 90 days must be paid by the respective school 
 60.12  district.  The school district may recover any omitted active 
 60.13  membership group assessment amounts that it has previously 
 60.14  paid.  The teachers retirement fund association shall deduct any 
 60.15  omitted retired membership group assessment amounts from the 
 60.16  benefits next payable after the discovery of the omitted amounts.
 60.17     Sec. 4.  [STATE PAYMENT OF CERTAIN UNPAID CHARTER SCHOOL 
 60.18  RETIREMENT CONTRIBUTIONS.] 
 60.19     Subdivision 1.  [UNPAID CONTRIBUTIONS.] (a) The state of 
 60.20  Minnesota shall make any unpaid employee, employer, and employer 
 60.21  additional contributions to the applicable retirement 
 60.22  association for teaching or other service in a designated 
 60.23  charter school which closed before April 1, 2002, without having 
 60.24  paid the required contributions to the retirement association.  
 60.25     (b) By June 1, 2002, the chief administrative officer of 
 60.26  the retirement association shall certify to the commissioner of 
 60.27  children, families, and learning the amount of accrued 
 60.28  contributions, plus applicable interest, which were not paid by 
 60.29  each designated charter school before its closure.  On July 1, 
 60.30  2002, the commissioner of children, families, and learning shall 
 60.31  pay the amounts certified from the state total building lease 
 60.32  aid otherwise payable under Minnesota Statutes, section 124D.11, 
 60.33  subdivision 4a, to the affected retirement associations.  The 
 60.34  forecasted amount of charter school lease aid must not be 
 60.35  adjusted to reflect the amount remitted under this section.  
 60.36  Rather, charter school lease aid must be prorated by the amount 
 61.1   remitted.  The commissioner shall remit directly to the 
 61.2   retirement association the amounts certified under this 
 61.3   section.  The applicable retirement association shall credit 
 61.4   employee contribution payments to the applicable member accounts 
 61.5   and shall credit to the applicable members allowable and formula 
 61.6   service and covered salary for the period when the teaching or 
 61.7   other service was actually performed in the charter school.  
 61.8   State payments representing unpaid employee contributions must 
 61.9   be considered accumulated employee or member deductions for 
 61.10  purposes of Minnesota Statutes, section 353.34; 354.49; or 
 61.11  354A.37. 
 61.12     Subd. 2.  [COVERED RETIREMENT ASSOCIATIONS.] This section 
 61.13  applies to the following public retirement associations 
 61.14  providing retirement coverage for employees in charter schools: 
 61.15     (1) the teachers retirement association; 
 61.16     (2) the Minneapolis teachers retirement fund association; 
 61.17     (3) the St. Paul teachers retirement fund association; 
 61.18     (4) the Duluth teachers retirement fund association; and 
 61.19     (5) the public employees retirement association. 
 61.20     Subd. 3.  [DESIGNATED CLOSED CHARTER SCHOOLS.] This section 
 61.21  applies to the Frederick Douglass charter school and any other 
 61.22  charter school that is determined by the commissioner of 
 61.23  children, families, and learning to have closed before April 1, 
 61.24  2002. 
 61.25     Sec. 5.  [CONTINUING RECOVERY AUTHORITY.] 
 61.26     Nothing in section 4 relieves the sponsor of a closed 
 61.27  charter school and the operator of a closed charter school from 
 61.28  any financial responsibility that those parties may have to pay 
 61.29  unpaid employee, employer, or employer additional contributions 
 61.30  to the applicable public retirement plans.  The commissioner of 
 61.31  revenue shall undertake all reasonable efforts to recover these 
 61.32  amounts.  Any recovered amounts must be deposited in the general 
 61.33  fund and are appropriated to the department of children, 
 61.34  families, and learning to offset the payment of unpaid 
 61.35  contributions under section 4.  
 61.36     Sec. 6.  [EFFECTIVE DATE.] 
 62.1      (a) Sections 1 and 2 are effective on July 1, 2002. 
 62.2      (b) Sections 4 and 5 are effective on the day following 
 62.3   final enactment. 
 62.4                              ARTICLE 7 
 62.5                       TEACHER RETIREMENT PLANS 
 62.6                       SERVICE CREDIT PURCHASE 
 62.7                          DEADLINE EXTENSION 
 62.8      Section 1.  Laws 1999, chapter 222, article 16, section 16, 
 62.9   is amended to read: 
 62.10     Sec. 16.  [REPEALER.] 
 62.11     Sections 1 to 13 are repealed on May 16, ~~2002~~ 2003. 
 62.12     Sec. 2.  Laws 2000, chapter 461, article 12, section 20, is 
 62.13  amended to read: 
 62.14     Sec. 20.  [EFFECTIVE DATE.] 
 62.15     (a) Sections 4, 5, and 11 to 20 are effective on the day 
 62.16  following final enactment. 
 62.17     (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 
 62.18  following final enactment and apply retroactively to a faculty 
 62.19  member of the Lake Superior College who was granted an extended 
 62.20  leave of absence under article 19, section 4, of the united 
 62.21  technical college educators master agreement for the 1999-2000 
 62.22  academic year prior to March 20, 2000. 
 62.23     (c) Sections 5, 11, and 14, paragraph (c), expire on May 
 62.24  16, ~~2002~~ 2003. 
 62.25     Sec. 3.  Laws 2001, First Special Session chapter 10, 
 62.26  article 6, section 21, is amended to read: 
 62.27     Sec. 21.  [EXPIRATION DATE.] 
 62.28     (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 
 62.29  18, 19, and 20 expire May 16, 2003. 
 62.30     (b) Sections 9 and 15 expire May 16, ~~2002~~ 2003. 
 62.31     Sec. 4.  [EFFECTIVE DATE.] 
 62.32     Sections 1 to 3 are effective on the day following final 
 62.33  enactment. 
 62.34                             ARTICLE 8
 62.35                      RECODIFICATION OF SOCIAL
 62.36                    SECURITY COVERAGE PROVISIONS
 63.1      Section 1.  Minnesota Statutes 2000, section 355.01, 
 63.2   subdivision 1, is amended to read: 
 63.3      Subdivision 1.  [IN GENERAL.] For the purposes of this 
 63.4   chapter, ~~as amended,~~ each of the terms defined in this section 
 63.5   ~~have~~ has the ~~meanings~~ meaning ascribed to them herein.  
 63.6      Sec. 2.  Minnesota Statutes 2000, section 355.01, is 
 63.7   amended by adding a subdivision to read: 
 63.8      Subd. 2a.  [CONSTITUTIONAL OFFICER.] "Constitutional 
 63.9   officer" means a person who serves as the governor, lieutenant 
 63.10  governor, attorney general, secretary of state, state auditor, 
 63.11  or state treasurer, who is duly elected and who was sworn into 
 63.12  office. 
 63.13     Sec. 3.  Minnesota Statutes 2000, section 355.01, is 
 63.14  amended by adding a subdivision to read: 
 63.15     Subd. 2b.  [DIRECTOR.] "Director" means the executive 
 63.16  director of the public employees retirement association. 
 63.17     Sec. 4.  Minnesota Statutes 2000, section 355.01, is 
 63.18  amended by adding a subdivision to read: 
 63.19     Subd. 2c.  [DULUTH TEACHER.] "Duluth teacher" means a 
 63.20  person employed by independent school district No. 709, Duluth, 
 63.21  who holds a position covered by the Duluth teachers retirement 
 63.22  fund association established under chapter 354A. 
 63.23     Sec. 5.  Minnesota Statutes 2000, section 355.01, is 
 63.24  amended by adding a subdivision to read: 
 63.25     Subd. 2d.  [EDUCATIONAL EMPLOYEE.] "Educational employee" 
 63.26  means an employee of the state of Minnesota or of a public 
 63.27  subdivision of the state who performs services in a position 
 63.28  covered by the teachers retirement association under chapter 354.
 63.29     Sec. 6.  Minnesota Statutes 2000, section 355.01, is 
 63.30  amended by adding a subdivision to read: 
 63.31     Subd. 2e.  [EMPLOYEE.] "Employee" means a person employed 
 63.32  by the state of Minnesota or by a political subdivision of the 
 63.33  state and includes an officer of the state of Minnesota or of a 
 63.34  political subdivision of the state. 
 63.35     Sec. 7.  Minnesota Statutes 2000, section 355.01, is 
 63.36  amended by adding a subdivision to read: 
 64.1      Subd. 2f.  [EMPLOYEE TAX.] "Employee tax" means the tax 
 64.2   imposed by section 3101 of the Internal Revenue Code of 1986. 
 64.3      Sec. 8.  Minnesota Statutes 2000, section 355.01, 
 64.4   subdivision 3, is amended to read: 
 64.5      Subd. 3.  [EMPLOYMENT.] ~~The term~~ (a) "Employment" means any 
 64.6   service performed by an employee in the employ of the state, or 
 64.7   any political subdivision thereof, for ~~such~~ that employer, 
 64.8   except: 
 64.9      (1) service which in the absence of an agreement entered 
 64.10  into under this chapter, as amended, would constitute 
 64.11  "employment" as defined in the Social Security act; or 
 64.12     (2) service which under the Social Security Act ~~may~~ is not 
 64.13  permitted to be included in an agreement between the state and 
 64.14  the federal Secretary of Health~~, Education,~~ and ~~Welfare~~ Human 
 64.15  Services entered into under this chapter~~, as amended~~.  
 64.16     (b) Service which under the Social Security Act ~~may~~ is 
 64.17  permitted to be included in an agreement only upon certification 
 64.18  by the governor in accordance with section 218(d) (3) of that 
 64.19  act ~~shall~~ must be included in the term "employment" if and when 
 64.20  the governor issues, with respect to ~~such~~ that service, ~~a~~ the 
 64.21  appropriate federal certificate to the federal Secretary of 
 64.22  Health~~, Education,~~ and ~~Welfare~~ Human Services.  
 64.23     Sec. 9.  Minnesota Statutes 2000, section 355.01, is 
 64.24  amended by adding a subdivision to read: 
 64.25     Subd. 3a.  [FEDERAL INSURANCE CONTRIBUTIONS ACT.] "Federal 
 64.26  Insurance Contributions Act" means subchapters A and B of 
 64.27  chapter 21 of the Internal Revenue Code of 1986, as amended 
 64.28  through December 31, 2000. 
 64.29     Sec. 10.  Minnesota Statutes 2000, section 355.01, is 
 64.30  amended by adding a subdivision to read: 
 64.31     Subd. 3b.  [GOVERNMENTAL EMPLOYER.] "Governmental employer" 
 64.32  means any political subdivision as defined in section 218 of the 
 64.33  Social Security Act.  The term includes a city, county, town, 
 64.34  hospital district, or other body, politic and corporate, located 
 64.35  in Minnesota. 
 64.36     Sec. 11.  Minnesota Statutes 2000, section 355.01, is 
 65.1   amended by adding a subdivision to read: 
 65.2      Subd. 3c.  [HIGHER EDUCATION EMPLOYEE.] "Higher education 
 65.3   employee" means an employee of the state of Minnesota who 
 65.4   performs services in a Minnesota state colleges and universities 
 65.5   system in a position covered by the individual retirement 
 65.6   account plan under section 354B.21 and who remains a member of 
 65.7   the teachers retirement association for purposes of social 
 65.8   security coverage only. 
 65.9      Sec. 12.  Minnesota Statutes 2000, section 355.01, is 
 65.10  amended by adding a subdivision to read: 
 65.11     Subd. 3d.  [HOSPITAL EMPLOYEE.] "Hospital employee" means 
 65.12  an officer or employee of a public hospital who performs 
 65.13  services in a position covered by the public employees 
 65.14  retirement association under chapter 353. 
 65.15     Sec. 13.  Minnesota Statutes 2000, section 355.01, is 
 65.16  amended by adding a subdivision to read: 
 65.17     Subd. 3e.  [JUDGE.] "Judge" means a judge as defined in 
 65.18  section 490.121, subdivision 3. 
 65.19     Sec. 14.  Minnesota Statutes 2000, section 355.01, is 
 65.20  amended by adding a subdivision to read: 
 65.21     Subd. 3f.  [LEGISLATOR.] "Legislator" means a member of the 
 65.22  legislature who is duly elected and who was sworn into office. 
 65.23     Sec. 15.  Minnesota Statutes 2000, section 355.01, is 
 65.24  amended by adding a subdivision to read: 
 65.25     Subd. 3g.  [LOCAL GOVERNMENTAL SUBDIVISION.] "Local 
 65.26  governmental subdivision" means: 
 65.27     (1) a political subdivision as defined in section 218(b) of 
 65.28  the Social Security Act; 
 65.29     (2) an instrumentality of the state; 
 65.30     (3) an instrumentality of one or more of the political 
 65.31  subdivisions of the state, including the league of Minnesota 
 65.32  cities; 
 65.33     (4) an instrumentality of the state and one or more of its 
 65.34  political subdivisions; 
 65.35     (5) a governmental subdivision as defined in section 
 65.36  353.01, subdivision 6; and 
 66.1      (6) any instrumentality established under a joint powers 
 66.2   agreement under section 471.59 wherein the instrumentality is 
 66.3   responsible for the employment and the payment of the salaries 
 66.4   of the employees of the instrumentality. 
 66.5      Sec. 16.  Minnesota Statutes 2000, section 355.01, is 
 66.6   amended by adding a subdivision to read: 
 66.7      Subd. 3h.  [MINNEAPOLIS TEACHER.] "Minneapolis teacher" 
 66.8   means a person employed by special school district No. 1, 
 66.9   Minneapolis, who holds a position covered by the Minneapolis 
 66.10  teachers retirement fund association established under chapter 
 66.11  354A. 
 66.12     Sec. 17.  Minnesota Statutes 2000, section 355.01, is 
 66.13  amended by adding a subdivision to read: 
 66.14     Subd. 3i.  [POLITICAL SUBDIVISION.] "Political subdivision" 
 66.15  means any political subdivision as defined in section 218(b) of 
 66.16  the Social Security Act, and includes any instrumentality of the 
 66.17  state, any instrumentality of one or more of its political 
 66.18  subdivisions, including the league of Minnesota municipalities, 
 66.19  any instrumentality of the state and one or more of its 
 66.20  political subdivisions, and an instrumentality established under 
 66.21  a joint powers agreement under section 471.59, wherein the 
 66.22  instrumentality is responsible for the employment and payment of 
 66.23  the salaries of employees of the instrumentality. 
 66.24     Sec. 18.  Minnesota Statutes 2000, section 355.01, is 
 66.25  amended by adding a subdivision to read: 
 66.26     Subd. 3j.  [PUBLIC EMPLOYEE.] "Public employee" means an 
 66.27  officer or an employee of a local governmental subdivision of 
 66.28  the state who performs services in a position covered by the 
 66.29  public employees retirement association established under 
 66.30  chapter 353. 
 66.31     Sec. 19.  Minnesota Statutes 2000, section 355.01, is 
 66.32  amended by adding a subdivision to read: 
 66.33     Subd. 3k.  [PUBLIC HOSPITAL.] "Public hospital" means a 
 66.34  hospital that is owned or operated by a governmental employer or 
 66.35  a combination of governmental employers, or a hospital that is 
 66.36  an integral part of a governmental employer or of a combination 
 67.1   of governmental employers. 
 67.2      Sec. 20.  Minnesota Statutes 2000, section 355.01, is 
 67.3   amended by adding a subdivision to read: 
 67.4      Subd. 3l.  [ST. PAUL TEACHER.] "St. Paul teacher" means a 
 67.5   person employed by independent school district No. 625, St. 
 67.6   Paul, who holds a position covered by the St. Paul teachers 
 67.7   retirement fund association established under chapter 354A. 
 67.8      Sec. 21.  Minnesota Statutes 2000, section 355.01, 
 67.9   subdivision 6, is amended to read: 
 67.10     Subd. 6.  [SECRETARY OF HEALTH AND HUMAN SERVICES.] ~~The~~ 
 67.11  ~~term~~ "Secretary of Health~~, Education,~~ and ~~Welfare~~ Human Services"
 67.12  means the secretary of the federal Department of Health and 
 67.13  Human Services and includes any individual to whom the Secretary 
 67.14  of Health~~, Education,~~ and ~~Welfare~~ Human Services has delegated 
 67.15  ~~any~~ functions under the Social Security Act with respect to 
 67.16  coverage ~~under such act~~ of employees of states and their 
 67.17  political subdivisions.  
 67.18     Sec. 22.  Minnesota Statutes 2000, section 355.01, 
 67.19  subdivision 8, is amended to read: 
 67.20     Subd. 8.  [SOCIAL SECURITY ACT.] ~~The term~~ "Social Security 
 67.21  Act" means the Act of Congress approved August 14, 1935, chapter 
 67.22  531, Statutes at Large, volume 49, page 620, officially cited as 
 67.23  the "Social Security Act," as ~~such act has been and may from~~ 
 67.24  ~~time to time be~~ amended (including the relevant regulations and 
 67.25  requirements ~~issued pursuant thereto~~).  
 67.26     Sec. 23.  Minnesota Statutes 2000, section 355.01, is 
 67.27  amended by adding a subdivision to read: 
 67.28     Subd. 11.  [SPECIAL AUTHORITY OR DISTRICT.] "Special 
 67.29  authority or district" means a municipal housing and 
 67.30  redevelopment authority organized under sections 469.001 to 
 67.31  469.047, a soil and water conservation district organized under 
 67.32  chapter 103C, a port authority organized under sections 469.048 
 67.33  to 469.068, an economic development authority organized under 
 67.34  sections 469.090 to 469.108, or a hospital district organized or 
 67.35  reorganized under sections 447.31 to 447.37. 
 67.36     Sec. 24.  Minnesota Statutes 2000, section 355.01, is 
 68.1   amended by adding a subdivision to read: 
 68.2      Subd. 12.  [SPECIAL AUTHORITY OR DISTRICT 
 68.3   EMPLOYEE.] "Special authority or district employee" means an 
 68.4   employee, other than an elected official, of a municipal housing 
 68.5   and redevelopment authority organized under sections 469.001 to 
 68.6   469.047, of a soil and water conservation district organized 
 68.7   under chapter 103C, of a port authority organized under sections 
 68.8   469.048 to 469.068, of an economic development authority 
 68.9   organized under sections 469.090 to 469.108, or of a hospital 
 68.10  district organized or reorganized under sections 447.31 to 
 68.11  447.37. 
 68.12     Sec. 25.  Minnesota Statutes 2000, section 355.01, is 
 68.13  amended by adding a subdivision to read: 
 68.14     Subd. 13.  [STATE EMPLOYEE.] "State employee" means an 
 68.15  employee of the state of Minnesota or of a political subdivision 
 68.16  who performs services in a position covered by the general state 
 68.17  employees retirement plan of the Minnesota state retirement 
 68.18  system governed by chapter 352, except any position for which 
 68.19  the compensation is on a fee basis. 
 68.20     Sec. 26.  Minnesota Statutes 2000, section 355.01, is 
 68.21  amended by adding a subdivision to read: 
 68.22     Subd. 14.  [WAGES.] "Wages" means all remuneration for 
 68.23  employment, including the cash value of all remuneration paid in 
 68.24  any medium other than cash.  The term does not include that part 
 68.25  of the remuneration which, even if it were for employment within 
 68.26  the meaning of the Federal Insurance Contributions Act, would 
 68.27  not constitute wages within the meaning of that act. 
 68.28     Sec. 27.  Minnesota Statutes 2000, section 355.02, is 
 68.29  amended to read: 
 68.30     355.02 [AGREEMENTS.] 
 68.31     Subdivision 1.  [GENERAL AUTHORITY.] (a) The ~~state agency~~ 
 68.32  director, with the approval of the governor, is hereby 
 68.33  authorized to enter into an agreement on behalf of the state 
 68.34  with the federal Secretary of Health~~, Education,~~ and ~~Welfare~~ 
 68.35  Human Services, consistent with the terms and provisions of this 
 68.36  chapter~~, as amended~~, for the purpose of extending the benefits 
 69.1   of the federal old age ~~and~~, survivors, and disability insurance 
 69.2   system to employees of the state or any political subdivision 
 69.3   thereof with respect to services specified in ~~such~~ the agreement 
 69.4   which constitute "employment," whenever so specifically 
 69.5   authorized by the statutory provisions of this state pertaining 
 69.6   to any coverage group of such employees to which the agreement 
 69.7   may become applicable under the Social Security Act.  
 69.8      ~~Pursuant to such~~ (b) Under this specific authorization the 
 69.9   agreement may contain ~~such~~ those provisions relating to 
 69.10  coverage, benefits, contributions, effective date, modification 
 69.11  and termination of the agreement, administration, and other 
 69.12  appropriate provisions as the ~~state agency~~ director and the 
 69.13  federal Secretary of Health~~, Education,~~ and ~~Welfare~~ Human 
 69.14  Services shall agree upon, but, except as may be otherwise 
 69.15  required by or under the Social Security Act as to the services 
 69.16  to be covered, such agreement ~~shall~~ must provide in effect that: 
 69.17     (1) benefits will be provided for employees whose services 
 69.18  are covered by the agreement (and their dependents and 
 69.19  survivors) on the same basis as though ~~such~~ those services 
 69.20  constituted employment within the meaning of title II of the 
 69.21  Social Security Act; 
 69.22     (2) the state or other employer will pay to the federal 
 69.23  Secretary of the Treasury, at such time or times as may be 
 69.24  prescribed under the Social Security Act, contributions with 
 69.25  respect to wages, equal to the sum of the taxes which would be 
 69.26  imposed by the Federal Insurance Contributions Act if the 
 69.27  services covered by the agreement constituted employment within 
 69.28  the meaning of that act; 
 69.29     (3) ~~Such~~ the agreement ~~shall be~~ is effective with respect 
 69.30  to services in employment covered by the agreement performed 
 69.31  after a date specified therein ~~but in no event may it be~~ 
 69.32  ~~effective with respect to any such services performed prior to~~ 
 69.33  ~~the first day of the calendar year in which such agreement is~~ 
 69.34  ~~entered into or in which the modification of the agreement~~ 
 69.35  ~~making it applicable to such services, is entered into except~~ 
 69.36  ~~that an agreement or modification entered into prior to January~~ 
 70.1   ~~1, 1960, may be effective with respect to services performed~~ 
 70.2   ~~after December 31, 1955, or after a later date specified in such~~ 
 70.3   ~~agreement or modification~~; and 
 70.4      (4) all services which constitute employment and are 
 70.5   performed in the employ of the state or any of its political 
 70.6   subdivisions by employees thereof, may be covered by ~~such~~ the 
 70.7   agreement whenever so specifically authorized by the statutory 
 70.8   provisions of this state pertaining to any coverage group of 
 70.9   such employees to which the agreement may become applicable 
 70.10  under the Social Security Act.  
 70.11     Subd. 2.  [INTERSTATE INSTRUMENTALITY.] (a) Any 
 70.12  instrumentality jointly created by this state and any other 
 70.13  state or states is ~~hereby~~ authorized, upon the granting of like 
 70.14  authority by ~~such~~ the other state or states, to: 
 70.15     (1) ~~to~~ enter into an agreement with the federal Secretary 
 70.16  of Health~~, Education,~~ and ~~Welfare~~ Human Services whereby the 
 70.17  benefits of the federal old age ~~and~~, survivors, and disability 
 70.18  insurance system ~~shall be~~ are extended to employees of ~~such~~ the 
 70.19  instrumentality~~,~~; 
 70.20     (2) ~~to~~ require its employees to pay (and for that purpose 
 70.21  to deduct from their wages) contributions equal to the amounts 
 70.22  which they would be required to pay under section 355.03, 
 70.23  subdivision 1, if they were covered by an agreement made 
 70.24  ~~pursuant to~~ under subdivision 1~~,~~; and 
 70.25     (3) ~~to~~ make payments to the federal Secretary of the 
 70.26  Treasury in accordance with ~~such~~ that agreement, including 
 70.27  payments from its own funds, and otherwise to comply with ~~such~~ 
 70.28  those agreements.  ~~Such~~ 
 70.29     (b) The agreements ~~shall~~ must, to the extent practicable, 
 70.30  be consistent with the terms and provisions of subdivision 1 and 
 70.31  other provisions of this chapter~~, as amended~~. 
 70.32     Subd. 3.  [GROUPS COVERED BY SOCIAL SECURITY.] The 
 70.33  following groups must be covered by an agreement or a 
 70.34  modification to an agreement between the state agency and the 
 70.35  federal Secretary of Health and Human Services: 
 70.36     (1) constitutional officers; 
 71.1      (2) Duluth teachers; 
 71.2      (3) educational employees; 
 71.3      (4) higher education employees; 
 71.4      (5) hospital employees; 
 71.5      (6) judges; 
 71.6      (7) legislators; 
 71.7      (8) Minneapolis teachers; 
 71.8      (9) public employees; 
 71.9      (10) St. Paul teachers; 
 71.10     (11) special authority or district employees; and 
 71.11     (12) state employees. 
 71.12     Sec. 28.  Minnesota Statutes 2000, section 355.03, is 
 71.13  amended to read: 
 71.14     355.03 [EMPLOYEES AND EMPLOYERS, CONTRIBUTIONS.] 
 71.15     Subdivision 1.  [EMPLOYEE CONTRIBUTION AMOUNT.] Every 
 71.16  employee of the state, or of any of its political subdivisions, 
 71.17  whose services are covered by the agreement entered into under 
 71.18  section 355.02 ~~shall be required to~~ must pay for the period 
 71.19  of ~~such~~ the coverage, ~~into the contribution fund established by~~ 
 71.20  ~~section 355.04,~~ contributions~~,~~ with respect to wages, equal to 
 71.21  the amount of the employee's tax which would be imposed by the 
 71.22  Federal Insurance Contributions Act if ~~such~~ those services 
 71.23  constituted employment within the meaning of that act.  
 71.24  ~~Such~~ This liability ~~shall arise~~ arises in consideration of the 
 71.25  employee's retention in the service of the state, or any of its 
 71.26  political subdivisions, or the employee's entry upon ~~such~~ that 
 71.27  service, after the enactment of this chapter~~, as amended~~. 
 71.28     Subd. 2.  [EMPLOYEE DEDUCTION.] The contribution imposed by 
 71.29  this section ~~shall~~ must be collected by the covered employee's 
 71.30  employer by deducting the amount of the contribution from wages 
 71.31  as and when paid~~, but~~.  The failure to make such deduction ~~shall~~ 
 71.32  does not relieve the employee from liability for such 
 71.33  contribution.  
 71.34     Subd. 2a.  [EMPLOYER CONTRIBUTION.] (a) Employer 
 71.35  contributions that are required under the agreement must be paid 
 71.36  by the applicable employing unit. 
 72.1      (b) Employer contributions on behalf of St. Paul teachers, 
 72.2   Duluth teachers, Minneapolis teachers, or education employees 
 72.3   may be paid from normal school operating funds.  Employer 
 72.4   contributions on behalf of state employees must be paid by the 
 72.5   applicable department or agency from its appropriation or other 
 72.6   revenue, in the same proportion as salaries are paid, and must 
 72.7   be charged as an administrative cost of the state governmental 
 72.8   unit. 
 72.9      (c) Employing units may pay the employer contribution from 
 72.10  taxes collected or from other governmental revenue.  An 
 72.11  employing unit may include in its tax levy the amount necessary 
 72.12  to pay its social security obligations.  If the taxes authorized 
 72.13  to be levied cause the total levy amount to exceed any 
 72.14  limitation on the power of the employing unit to levy taxes, the 
 72.15  unit may still levy the necessary amount.  The employing unit, 
 72.16  in the event of a deficit, may issue debt obligations, payable 
 72.17  in not more than two years, in an amount which may cause its 
 72.18  indebtedness to exceed any limitation without holding an 
 72.19  election and may levy taxes to amortize the indebtedness.  The 
 72.20  authorized social security expenditures must not be included in 
 72.21  computing the cost of government for purposes of any home rule 
 72.22  charter or other charter. 
 72.23     (d) If the required employer contribution for social 
 72.24  security is increased and, as a result of that increase, there 
 72.25  is insufficient money available to a state governmental unit, 
 72.26  there is appropriated to the state department or agency from the 
 72.27  general fund the amount required to meet the deficiency, based 
 72.28  on certifications from the director to the commissioner of 
 72.29  finance.  The transfer of the appropriated amount may only occur 
 72.30  after the commissioner of finance notifies the chair and ranking 
 72.31  minority member of the house committee on ways and means and the 
 72.32  chair and ranking minority member of the senate finance 
 72.33  committee of the amount to be transferred. 
 72.34     (e) For members of the general state employees retirement 
 72.35  plan of the Minnesota state retirement system who are employed 
 72.36  by the state horticultural society, the department of Minnesota 
 73.1   for the disabled American veterans organization, the department 
 73.2   of Minnesota of the veterans of foreign wars organization, the 
 73.3   Minnesota crop improvement association, the Minnesota historical 
 73.4   society, the armory building commission, and the 
 73.5   Minnesota-Wisconsin-Minneapolis-St. Paul survival plan project, 
 73.6   the applicable employing unit must pay the employer contribution 
 73.7   from any revenue source that it has. 
 73.8      Subd. 3.  [ADJUSTMENTS; REFUNDS.] If more or less than the 
 73.9   correct amount of the contribution imposed by this section is 
 73.10  paid or deducted with respect to any remuneration, proper 
 73.11  adjustments, or refund if adjustment is impracticable, ~~shall~~ 
 73.12  must be made, without interest, in such manner and at such times 
 73.13  as the ~~state agency shall prescribe~~ director prescribes.  
 73.14     Subd. 4.  [DELINQUENT PAYMENTS.] Delinquent payments that 
 73.15  are due under this chapter, with compound interest at the rate 
 73.16  of six percent per annum, may be recovered by legal action in a 
 73.17  court of competent jurisdiction against an employing unit that 
 73.18  is liable for the amount.  The director may request that the 
 73.19  delinquent payment and interest amount be deducted from any 
 73.20  other money that is payable to the applicable employing unit by 
 73.21  any department or agency of the state.  An action for the 
 73.22  recovery of delinquent payments is not subject to any statutory 
 73.23  provision that would otherwise limit the time within which an 
 73.24  action may be commenced. 
 73.25     Sec. 29.  [355.035] [REIMBURSEMENT BY EMPLOYING UNITS.] 
 73.26     An employing unit which employs a member of a covered group 
 73.27  must reimburse the state agency for its pro rata share of the 
 73.28  cost of the administration of the agency with respect to social 
 73.29  security coverage in accordance with the rules of the director 
 73.30  pertaining to this reimbursement.  
 73.31     Sec. 30.  [355.036] [REPORTS.] 
 73.32     An employing unit which employs a member of a covered group 
 73.33  must make any reports in the form required and must include the 
 73.34  information that the director requires.  An employing unit also 
 73.35  must comply with the reporting requirements that the director or 
 73.36  the federal Secretary of Health and Human Services may from time 
 74.1   to time determine are necessary to ensure the correctness and 
 74.2   verification of relevant information. 
 74.3      Sec. 31.  [355.037] [PROCEEDS OF SPECIAL BENEFIT TAXES.] 
 74.4      The proceeds of the special benefit taxes that are 
 74.5   authorized to be levied for redevelopment purposes under section 
 74.6   469.033, subdivision 6, may be used to defray all or part of the 
 74.7   costs incurred by any housing and redevelopment authority under 
 74.8   this chapter. 
 74.9      Sec. 32.  Minnesota Statutes 2000, section 355.05, is 
 74.10  amended to read: 
 74.11     355.05 [RULES.] 
 74.12     The ~~state agency shall make and publish such~~ director may 
 74.13  promulgate those rules, not inconsistent with the provisions of 
 74.14  this chapter~~, as amended~~, as it finds necessary or appropriate 
 74.15  to the efficient administration of the functions with which it 
 74.16  is charged under this chapter~~, as amended~~. 
 74.17     Sec. 33.  Minnesota Statutes 2000, section 355.07, is 
 74.18  amended to read: 
 74.19     355.07 [DECLARATION OF POLICY.] 
 74.20     (a) In order to extend to employees of the state ~~and~~, its 
 74.21  political subdivisions, and its other governmental employers, 
 74.22  and to the dependents and survivors of ~~such~~ the employees of 
 74.23  those employing units, the basic protection accorded to others 
 74.24  by the old age ~~and~~, survivors, and disability insurance system 
 74.25  embodied in the Social Security Act, it is hereby declared to be 
 74.26  the policy of the legislature, subject to the limitations of 
 74.27  this chapter, that these steps are taken to provide protection 
 74.28  to employees of the state and its political subdivisions on as 
 74.29  broad a basis as may be authorized by the legislature and is 
 74.30  permitted under the Social Security Act.  
 74.31     (b) It is also the policy of the legislature that the 
 74.32  protection afforded employees in positions covered by a 
 74.33  retirement system on the date an agreement under this chapter is 
 74.34  made applicable to service performed in those positions, or 
 74.35  receiving periodic benefits under the retirement system at that 
 74.36  time, will not be impaired as a result of making the agreement 
 75.1   so applicable or as a result of legislative enactment in 
 75.2   anticipation thereof when combined with the benefits accorded 
 75.3   the employee by the Social Security Act.  
 75.4      (c) To this end, the agreement referred to in section 
 75.5   355.02 ~~shall~~ must not be made applicable to any service 
 75.6   performed in any position covered by a retirement system unless 
 75.7   a referendum is first held by secret ballot in which a majority 
 75.8   of "eligible employees," as defined in section 218(d) (3) of the 
 75.9   Social Security Act, vote in favor thereof, or unless a 
 75.10  retirement system is divided in two divisions or parts, one of 
 75.11  which is composed of positions of members of the system who 
 75.12  desire coverage and one of which is composed of positions of 
 75.13  members of the system who do not desire coverage under section 
 75.14  218(d) (3) of the Social Security Act, in accordance with 
 75.15  subsections (6) and (7) thereof.  
 75.16     (d) Nothing in any provision of this chapter ~~shall~~ 
 75.17  ~~authorize~~ authorizes the extension of the insurance system 
 75.18  established by this chapter~~, as amended~~, to service in any 
 75.19  police officer's or firefighter's position or in any position 
 75.20  covered by a retirement system applicable exclusively to 
 75.21  positions in one or more law enforcement or fire fighting units, 
 75.22  agencies or departments.  
 75.23     Sec. 34.  Minnesota Statutes 2000, section 355.08, is 
 75.24  amended to read: 
 75.25     355.08 [APPLICATION OF SOCIAL SECURITY ACT.] 
 75.26     The provisions of the Social Security Act~~, and all acts~~ 
 75.27  ~~amendatory thereof, shall~~ govern relative to employees of the 
 75.28  state ~~and~~, its political subdivisions, and its other 
 75.29  governmental employers subject to ~~Minnesota Statutes,~~ this 
 75.30  chapter ~~355, as amended~~, anything in ~~said~~ this chapter to the 
 75.31  contrary notwithstanding.  
 75.32     Sec. 35.  [355.091] [DIVISION OF RETIREMENT PLANS.] 
 75.33     (a) The public retirement plans enumerated in paragraph (b) 
 75.34  must be divided into two parts in accordance with section 
 75.35  218(d)(6)(c) of the Social Security Act, with one part composed 
 75.36  of plan members who did not elect social security coverage in 
 76.1   the applicable referendum and the other part composed of plan 
 76.2   members who did elect social security coverage in the applicable 
 76.3   referendum. 
 76.4      (b) The applicable public retirement plans are: 
 76.5      (1) the elective state officers retirement plan; 
 76.6      (2) the judges retirement plan; 
 76.7      (3) the legislators retirement plan; 
 76.8      (4) the Minneapolis teachers retirement fund association; 
 76.9      (5) the general employees retirement plan of the public 
 76.10  employees retirement association; 
 76.11     (6) the St. Paul teachers retirement fund association; and 
 76.12     (7) the teachers retirement association. 
 76.13     (c) Plan participants and persons electing participation 
 76.14  under section 354B.21 remain members of the teachers retirement 
 76.15  association for purposes of social security coverage only, and 
 76.16  remain covered by the applicable agreement entered into under 
 76.17  section 355.01, but are not members of the teachers retirement 
 76.18  association for any other purpose while employed in covered 
 76.19  employment. 
 76.20     Sec. 36.  [REPEALER.] 
 76.21     Minnesota Statutes 2000, sections 355.01, subdivisions 2, 
 76.22  4, 5, 9, and 10; 355.11; 355.12; 355.13; 355.14; 355.15; 355.16; 
 76.23  355.17; 355.201; 355.202; 355.203; 355.204; 355.205; 355.206; 
 76.24  355.207; 355.208; 355.209; 355.21; 355.22; 355.23; 355.24; 
 76.25  355.25; 355.26; 355.27; 355.28; 355.281; 355.282; 355.283; 
 76.26  355.284; 355.285; 355.286; 355.287; 355.288; 355.29; 355.291; 
 76.27  355.292; 355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 
 76.28  355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 355.41; 
 76.29  355.42; 355.43; 355.44; 355.45; 355.46; 355.48; 355.49; 355.50; 
 76.30  355.51; 355.52; 355.54; 355.55; 355.56; 355.57; 355.58; 355.59; 
 76.31  355.60; 355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 
 76.32  355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 355.74; 
 76.33  355.75; 355.76; 355.77; 355.78; 355.79; 355.80; 355.81; and 
 76.34  355.90, are repealed. 
 76.35     Sec. 37.  [EFFECTIVE DATE.] 
 76.36     Sections 1 to 36 are effective on July 1, 2002. 
 77.1                              ARTICLE 9
 77.2                         PUBLIC PENSION PLAN
 77.3                    ACTUARIAL ASSUMPTION REVISIONS
 77.4      Section 1.  Minnesota Statutes 2000, section 356.215, 
 77.5   subdivision 4d, is amended to read: 
 77.6      Subd. 4d.  [INTEREST AND SALARY ASSUMPTIONS.] (a) The 
 77.7   actuarial valuation must use the applicable following 
 77.8   preretirement interest assumption and the applicable following 
 77.9   postretirement interest assumption: 
 77.10                                     preretirement  postretirement 
 77.11                                     interest rate  interest rate 
 77.12             plan                      assumption     assumption 
 77.13       general state employees 
 77.14           retirement plan                  8.5%          6.0% 
 77.15       correctional state employees 
 77.16           retirement plan                  8.5           6.0 
 77.17       state patrol retirement plan         8.5           6.0 
 77.18       legislators retirement plan          8.5           6.0 
 77.19       elective state officers
 77.20           retirement plan                  8.5           6.0 
 77.21       judges retirement plan               8.5           6.0 
 77.22       general public employees 
 77.23           retirement plan                  8.5           6.0 
 77.24       public employees police and fire 
 77.25           retirement plan                  8.5           6.0 
 77.26       local government correctional 
 77.27           service retirement plan          8.5           6.0 
 77.28       teachers retirement plan             8.5           6.0 
 77.29       Minneapolis employees 
 77.30           retirement plan                  6.0           5.0 
 77.31       Duluth teachers retirement plan      8.5           8.5 
 77.32       Minneapolis teachers retirement
 77.33           plan                             8.5           8.5 
 77.34       St. Paul teachers retirement 
 77.35           plan                             8.5           8.5 
 77.36       Minneapolis police relief 
 77.37           association                      6.0           6.0 
 77.38       ~~other local~~ Fairmont police relief 
 77.39           ~~associations~~ association         5.0           5.0 
 77.40       Minneapolis fire department 
 77.41           relief association               6.0           6.0 
 77.42       ~~other local salaried firefighters~~ 
 77.43           Virginia fire department 
 77.44           relief ~~associations~~ association  5.0           5.0 
 77.45       local monthly benefit volunteer 
 77.46           firefighters relief associations 5.0           5.0 
 77.47     (b) The actuarial valuation must use the applicable 
 77.48  following single rate future salary increase assumption or the 
 77.49  applicable following graded rate future salary increase 
 77.50  assumption: 
 77.51     (1) single rate future salary increase assumption 
 77.52                                              future salary 
 77.53             plan                           increase assumption 
 77.54       legislators retirement plan                  5.0% 
 77.55       elective state officers retirement 
 77.56           plan                                     5.0 
 78.1        judges retirement plan                       5.0 
 78.2        Minneapolis police relief association        4.0 
 78.3        ~~other local~~ Fairmont police relief 
 78.4            ~~associations~~ association                 3.5 
 78.5        Minneapolis fire department relief 
 78.6            association                              4.0 
 78.7        ~~other local salaried firefighters~~ 
 78.8            Virginia fire department 
 78.9            relief ~~associations~~ association          3.5 
 78.10     (2) modified single rate future salary increase assumption 
 78.11                                              future salary 
 78.12             plan                           increase assumption
 78.13       Minneapolis employees            the prior calendar year 
 78.14         retirement plan                amount increased first by 
 78.15                                        1.0198 percent to prior 
 78.16                                        fiscal year date and  
 78.17                                        then increased by 4.0
 78.18                                        percent annually for 
 78.19                                        each future year
 78.20     (3) select and ultimate future salary increase assumption 
 78.21  or graded rate future salary increase assumption 
 78.22                                               future salary 
 78.23             plan                           increase assumption 
 78.24       general state employees             select calculation and
 78.25           retirement plan                      assumption A 
 78.26       correctional state employees 
 78.27           retirement plan                      assumption H 
 78.28       state patrol retirement plan             assumption H 
 78.29       general public employees            select calculation and
 78.30           retirement plan                      assumption B 
 78.31       public employees police and fire 
 78.32           fund retirement plan                 assumption C 
 78.33       local government correctional service 
 78.34           retirement plan                      assumption H 
 78.35       teachers retirement plan                 assumption D 
 78.36       Duluth teachers retirement plan          assumption E 
 78.37       Minneapolis teachers retirement plan     assumption F 
 78.38       St. Paul teachers retirement plan        assumption G 
 78.39       
 78.40       The select calculation~~:~~ is,
 78.41       during the ten-year select period, ~~0.2~~ a designated percent
 78.42       is multiplied by the result of ten minus T, where T is 
 78.43       the number of completed years of service, and is added
 78.44       to the applicable future salary increase assumption.  The
 78.45       designated percent is 0.2 percent for the correctional state
 78.46       employees retirement plan, the state patrol retirement 
 78.47       plan, the public employees police and fire plan, and the 
 78.48       local government correctional service plan; 0.3 percent 
 78.49       for the general state employees retirement plan, the 
 78.50       general public employees retirement plan, the teachers 
 78.51       retirement plan, the Duluth teachers retirement fund  
 78.52       association, and the St. Paul teachers retirement fund  
 78.53       association; and 0.4 percent for the Minneapolis teachers
 78.54       retirement fund association.   
 78.55      
 78.56       The ultimate future salary increase assumption is: 
 78.57       
 78.58       age  A     B      C     D     E     F     G      H 
 78.59       16  6.95% 6.95% 11.50% 8.20% 8.00% ~~7.50~~% ~~7.25~~% 7.7500
 78.60                                          6.50  6.90 
 78.61       17  6.90  6.90  11.50  8.15  8.00  ~~7.50~~  ~~7.25~~  7.7500
 78.62                                          6.50  6.90
 78.63       18  6.85  6.85  11.50  8.10  8.00  ~~7.50~~  ~~7.25~~  7.7500
 78.64                                          6.50  6.90
 78.65       19  6.80  6.80  11.50  8.05  8.00  ~~7.50~~  ~~7.25~~  7.7500
 78.66                                          6.50  6.90
 79.1        20  6.75  ~~6.75~~  11.50  ~~8.00~~  ~~8.00~~  ~~7.50~~  ~~7.25~~  7.7500
 79.2                  6.40         6.00  6.90  6.50  6.90
 79.3        21  ~~6.70~~  ~~6.70~~  11.50  ~~7.95~~  ~~8.00~~  ~~7.50~~  ~~7.25~~  7.1454
 79.4            6.75  6.40         6.00  6.90  6.50  6.90
 79.5        22  ~~6.65~~  ~~6.65~~  11.00  ~~7.90~~  ~~8.00~~  ~~7.50~~  ~~7.25~~  7.0725
 79.6            6.75  6.40         6.00  6.90  6.50  6.90
 79.7        23  6.75  6.40  10.50  6.00  6.85  6.50  6.85  7.0544
 79.8        24  ~~6.66~~  ~~6.55~~  10.00  ~~7.80~~  ~~7.80~~  ~~7.30~~  ~~7.20~~  7.0363
 79.9            6.75  6.40         6.00  6.80  6.50  6.80
 79.10       25  ~~6.50~~  ~~6.50~~   9.50  ~~7.75~~  ~~7.70~~  ~~7.20~~  ~~7.15~~  7.0000 
 79.11           6.75  6.40         6.00  6.75  6.50  6.75 
 79.12       26  ~~6.45~~  ~~6.45~~   9.20  ~~7.70~~  ~~7.60~~  ~~7.10~~  ~~7.10~~  7.0000
 79.13           6.75  6.36         6.00  6.70  6.50  6.70
 79.14       27  ~~6.40~~  ~~6.40~~   8.90  ~~7.65~~  ~~7.50~~  ~~7.00~~  ~~7.05~~  7.0000 
 79.15           6.75  6.32         6.00  6.65  6.50  6.65
 79.16       28  ~~6.35~~  ~~6.35~~   8.60  ~~7.60~~  ~~7.40~~  ~~6.90~~  ~~7.00~~  7.0000
 79.17           6.75  6.28         6.00  6.60  6.50  6.60
 79.18       29  ~~6.30~~  ~~6.30~~   8.30  ~~7.55~~  ~~7.30~~  ~~6.80~~  ~~6.95~~  7.0000
 79.19           6.75  6.24         6.00  6.55  6.50  6.55
 79.20       30  ~~6.25~~  ~~6.30~~   8.00  ~~7.50~~  ~~7.20~~  ~~6.70~~  ~~6.90~~  7.0000
 79.21           6.75  6.20         6.00  6.50  6.50  6.50
 79.22       31  ~~6.20~~  ~~6.25~~   7.80  ~~7.45~~  ~~7.10~~  ~~6.60~~  ~~6.85~~  7.0000
 79.23           6.75  6.16         6.00  6.45  6.50  6.45
 79.24       32  ~~6.15~~  ~~6.21~~   7.60  ~~7.40~~  ~~7.00~~  ~~6.50~~  ~~6.80~~  7.0000
 79.25           6.75  6.12         6.00  6.40  6.50  6.40
 79.26       33  ~~6.10~~  ~~6.17~~   7.40  ~~7.30~~  ~~6.90~~  ~~6.40~~  ~~6.75~~  7.0000
 79.27           6.75  6.08         6.00  6.35  6.50  6.35
 79.28       34  ~~6.05~~  ~~6.09~~   7.20  ~~7.10~~  ~~6.80~~  ~~6.30~~  ~~6.70~~  7.0000
 79.29           6.75  6.04         6.00  6.30  6.50  6.30
 79.30       35  ~~6.00~~  ~~6.05~~   7.00  ~~7.00~~  ~~6.70~~  ~~6.20~~  ~~6.65~~  7.0000
 79.31           6.75  6.00         6.00  6.25  6.50  6.25
 79.32       36  ~~6.95~~  ~~6.01~~   6.80  ~~6.85~~  ~~6.60~~  ~~6.10~~  ~~6.60~~  6.9019
 79.33           6.75  5.96         6.00  6.20  6.50  6.20
 79.34       37  ~~5.90~~  ~~5.97~~   6.60  ~~6.70~~  ~~6.50~~  ~~6.00~~  ~~6.55~~  6.8074
 79.35           6.75  5.92         6.00  6.15  6.50  6.15
 79.36       38  ~~5.85~~  ~~5.93~~   6.40  ~~6.55~~  ~~6.40~~  ~~5.90~~  ~~6.50~~  6.7125
 79.37           6.75  5.88         5.90  6.10  6.50  6.10
 79.38       39  ~~5.80~~  ~~5.89~~   6.20  ~~6.40~~  ~~6.30~~  ~~5.80~~  ~~6.40~~  6.6054
 79.39           6.75  5.84         5.80  6.05  6.50  6.05
 79.40       40  ~~5.75~~  ~~5.85~~   6.00  ~~6.25~~  ~~6.20~~  ~~5.70~~  ~~6.30~~  6.5000
 79.41           6.75  5.80         5.70  6.00  6.50  6.00
 79.42       41  ~~5.70~~  ~~5.81~~   5.90  ~~6.10~~  ~~6.10~~  ~~5.60~~  ~~6.20~~  6.3540
 79.43           6.75  5.76         5.60  5.90  6.50  5.95
 79.44       42  ~~5.65~~  ~~5.77~~   5.80  ~~5.95~~  ~~6.00~~  ~~5.50~~  ~~6.10~~  6.2087
 79.45           6.75  5.72         5.50  5.80  6.50  5.90
 79.46       43  ~~5.60~~  ~~5.73~~   5.70  ~~5.80~~  ~~5.90~~  ~~5.45~~  ~~6.00~~  6.0622
 79.47           6.65  5.68         5.40  5.70  6.50  5.85
 79.48       44  ~~5.55~~  ~~5.69~~   5.60  ~~5.65~~  ~~5.80~~  ~~5.40~~  ~~5.90~~  5.9048
 79.49           6.55  5.64         5.30  5.60  6.50  5.80
 79.50       45  ~~5.50~~  ~~5.65~~   5.50  ~~5.50~~  ~~5.70~~  ~~5.35~~  ~~5.80~~  5.7500
 79.51           6.45  5.60         5.20  5.50  6.50  5.75
 79.52       46  ~~5.45~~  ~~5.62~~   5.45  ~~5.45~~  ~~5.60~~  ~~5.30~~  ~~5.70~~  5.6940
 79.53           6.35  5.56         5.10  5.40  6.40  5.70
 79.54       47  ~~5.40~~  ~~5.59~~   5.40  ~~5.40~~  ~~5.50~~  ~~5.25~~  5.65  5.6375
 79.55           6.25  5.52         5.00  5.30  6.30
 79.56       48  ~~5.35~~  ~~5.56~~   5.35  ~~5.35~~  ~~5.45~~  ~~5.20~~  5.60  5.5822
 79.57           6.15  5.48         5.00  5.20  6.20
 79.58       49  ~~5.30~~  ~~5.53~~   5.30  ~~5.30~~  ~~5.40~~  ~~5.15~~  5.55  5.5404
 79.59           6.05  5.44         5.00  5.10  6.10
 79.60       50  ~~5.25~~  ~~5.50~~   5.25  ~~5.25~~  ~~5.35~~  ~~5.10~~  5.50  5.5000
 79.61           5.95  5.40         5.00  5.00  6.00
 79.62       51  ~~5.20~~  ~~5.45~~   5.25  ~~5.20~~  ~~5.30~~  ~~5.05~~  5.45  5.4384
 79.63           5.85  5.36         5.00  5.00  5.90
 79.64       52  ~~5.15~~  ~~5.40~~   5.25  ~~5.15~~  ~~5.25~~  ~~5.00~~  5.40  5.3776
 79.65           5.75  5.32         5.00  5.00  5.80
 79.66       53  ~~5.10~~  ~~5.35~~   5.25  ~~5.10~~  ~~5.25~~  ~~5.00~~  5.35  5.3167
 79.67           5.65  5.28         5.00  5.00  5.70
 79.68       54  ~~5.05~~  ~~5.30~~   5.25  ~~5.05~~  ~~5.25~~  ~~5.00~~  5.30  5.2826
 79.69           5.55  5.24         5.00  5.00  5.60
 79.70       55  ~~5.00~~  ~~5.25~~   5.25  5.00  ~~5.25~~  ~~5.00~~  5.25  5.2500 
 79.71           5.45  5.20               5.00  5.50
 80.1        56  ~~5.00~~  ~~5.20~~   5.25  5.00  ~~5.25~~  ~~5.00~~  ~~5.25~~  5.2500
 80.2            5.35  5.16               5.00  5.40  5.20
 80.3        57  ~~5.00~~  ~~5.15~~   5.25  5.00  ~~5.25~~  ~~5.00~~  ~~5.25~~  5.2500
 80.4            5.25  5.12               5.00  5.30  5.15
 80.5        58  ~~5.00~~  ~~5.10~~   5.25  ~~5.00~~  ~~5.25~~  ~~5.00~~  ~~5.25~~  5.2500
 80.6            5.25  5.08         5.10  5.00  5.20  5.10
 80.7        59  ~~5.00~~  ~~5.05~~   5.25  ~~5.00~~  ~~5.25~~  ~~5.00~~  ~~5.25~~  5.2500
 80.8            5.25  5.04         5.20  5.00  5.10  5.05
 80.9        60  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
 80.10           5.25               5.30  5.00        5.00
 80.11       61  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
 80.12           5.25               5.40  5.00        5.00
 80.13       62  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
 80.14           5.25               5.50  5.00        5.00
 80.15       63  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
 80.16           5.25               5.60  5.00        5.00
 80.17       64  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
 80.18           5.25               5.70  5.00        5.00
 80.19       65  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
 80.20           5.25               5.70  5.00        5.00
 80.21       66  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
 80.22           5.25               5.70  5.00        5.00
 80.23       67  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
 80.24           5.25               5.70  5.00        5.00
 80.25       68  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
 80.26           5.25               5.70  5.00        5.00
 80.27       69  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
 80.28           5.25               5.70  5.00        5.00
 80.29       70  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
 80.30           5.25               5.70  5.00        5.00
 80.31       71  ~~5.00~~  5.00         ~~5.00~~
 80.32           5.25               5.70
 80.33     (c) The actuarial valuation must use the applicable 
 80.34  following payroll growth assumption for calculating the 
 80.35  amortization requirement for the unfunded actuarial accrued 
 80.36  liability where the amortization retirement is calculated as a 
 80.37  level percentage of an increasing payroll: 
 80.38                                                   payroll growth
 80.39             plan                                    assumption 
 80.40       general state employees retirement plan          5.00% 
 80.41       correctional state employees retirement plan     5.00 
 80.42       state patrol retirement plan                     5.00 
 80.43       legislators retirement plan                      5.00 
 80.44       elective state officers retirement plan          5.00 
 80.45       judges retirement plan                           5.00 
 80.46       general public employees retirement plan         6.00 
 80.47       public employees police and fire 
 80.48           retirement plan                              6.00 
 80.49       local government correctional service 
 80.50           retirement plan                              6.00 
 80.51       teachers retirement plan                         5.00 
 80.52       Duluth teachers retirement plan                  5.00 
 80.53       Minneapolis teachers retirement plan             5.00 
 80.54       St. Paul teachers retirement plan                5.00 
 80.55     Sec. 2.  [EFFECTIVE DATE.] 
 80.56     Section 1 is effective on June 30, 2002. 
 80.57                             ARTICLE 10
 80.58                    AUTHORIZATION OF ADDITIONAL
 80.59                   SUPPLEMENTAL RETIREMENT PLANS
 81.1      Section 1.  Minnesota Statutes 2001 Supplement, section 
 81.2   356.24, subdivision 1, is amended to read: 
 81.3      Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
 81.4   for a school district or other governmental subdivision or state 
 81.5   agency to levy taxes for, or contribute public funds to a 
 81.6   supplemental pension or deferred compensation plan that is 
 81.7   established, maintained, and operated in addition to a primary 
 81.8   pension program for the benefit of the governmental subdivision 
 81.9   employees other than: 
 81.10     (1) to a supplemental pension plan that was established, 
 81.11  maintained, and operated before May 6, 1971; 
 81.12     (2) to a plan that provides solely for group health, 
 81.13  hospital, disability, or death benefits; 
 81.14     (3) to the individual retirement account plan established 
 81.15  by chapter 354B; 
 81.16     (4) to a plan that provides solely for severance pay under 
 81.17  section 465.72 to a retiring or terminating employee; 
 81.18     (5) for employees other than personnel employed by the 
 81.19  board of trustees of the Minnesota state colleges and 
 81.20  universities and covered under the higher education supplemental 
 81.21  retirement plan under chapter 354C, if provided for in a 
 81.22  personnel policy of the public employer or in the collective 
 81.23  bargaining agreement between the public employer and the 
 81.24  exclusive representative of public employees in an appropriate 
 81.25  unit, in an amount matching employee contributions on a dollar 
 81.26  for dollar basis, but not to exceed an employer contribution of 
 81.27  $2,000 a year per employee; 
 81.28     (i) to the state of Minnesota deferred compensation plan 
 81.29  under section 352.96; or 
 81.30     (ii) in payment of the applicable portion of the 
 81.31  contribution made to any investment eligible under section 
 81.32  403(b) of the Internal Revenue Code, if the employing unit has 
 81.33  complied with any applicable pension plan provisions of the 
 81.34  Internal Revenue Code with respect to the tax-sheltered annuity 
 81.35  program during the preceding calendar year; 
 81.36     (6) for personnel employed by the board of trustees of the 
 82.1   Minnesota state colleges and universities and not covered by 
 82.2   clause (5), to the supplemental retirement plan under chapter 
 82.3   354C, if provided for in a personnel policy or in the collective 
 82.4   bargaining agreement of the public employer with the exclusive 
 82.5   representative of the covered employees in an appropriate unit, 
 82.6   in an amount matching employee contributions on a dollar for 
 82.7   dollar basis, but not to exceed an employer contribution of 
 82.8   $2,700 a year for each employee; 
 82.9      (7) to a supplemental plan or to a governmental trust to 
 82.10  save for postretirement health care expenses qualified for 
 82.11  tax-preferred treatment under the Internal Revenue Code, if 
 82.12  provided for in a personnel policy or in the collective 
 82.13  bargaining agreement of a public employer with the exclusive 
 82.14  representative of the covered employees in an appropriate unit; 
 82.15  ~~or~~ 
 82.16     (8) to the laborer's national industrial pension fund for 
 82.17  the employees of a governmental subdivision who are covered by a 
 82.18  collective bargaining agreement that provides for coverage by 
 82.19  that fund and that sets forth a fund contribution rate, but not 
 82.20  to exceed an employer contribution of $2,000 per year per 
 82.21  employee; 
 82.22     (9) to the plumbers' and pipefitters' national pension fund 
 82.23  for the employees of a governmental subdivision who are covered 
 82.24  by a collective bargaining agreement that provides for coverage 
 82.25  by that fund and that sets forth a fund contribution rate, but 
 82.26  not to exceed an employer contribution of $2,000 per year per 
 82.27  employee; 
 82.28     (10) to the international union of operating engineers 
 82.29  pension fund for the employees of a governmental subdivision who 
 82.30  are covered by a collective bargaining agreement that provides 
 82.31  for coverage by that fund and that sets forth a fund 
 82.32  contribution rate, but not to exceed an employer contribution of 
 82.33  $2,000 per year per employee; or 
 82.34     (11) to a supplemental plan organized and operated under 
 82.35  the federal Internal Revenue Code, as amended, that is wholly 
 82.36  and solely funded by the employee's accumulated sick leave, 
 83.1   accumulated vacation leave, and accumulated severance pay. 
 83.2      Sec. 2.  Minnesota Statutes 2000, section 356.25, is 
 83.3   amended to read: 
 83.4      356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 
 83.5   EXCLUSIONS.] 
 83.6      Notwithstanding any other provision of law or charter, no 
 83.7   city, county, public agency or instrumentality, or other 
 83.8   political subdivision ~~shall, after August 1, 1975,~~ is required 
 83.9   or permitted to establish for any of its employees any local 
 83.10  pension plan or fund financed in whole or in part from public 
 83.11  funds, other than: 
 83.12     (1) a supplemental pension or deferred compensation plan 
 83.13  authorized under section 356.24; or 
 83.14     (2) a volunteer firefighter's relief association 
 83.15  established ~~pursuant to~~ under chapter 424A and governed by 
 83.16  sections 69.771 to 69.776. 
 83.17     Sec. 3.  [RATIFICATION AND VALIDATION OF CERTAIN PAST 
 83.18  ACTIONS.] 
 83.19     Any supplemental pension plan that is organized and 
 83.20  operated under section 401(a) of the federal Internal Revenue 
 83.21  Code, as amended, that is wholly and solely funded by an 
 83.22  employee's accumulated sick leave, accumulated vacation leave, 
 83.23  and accumulated severance pay, and that was established before 
 83.24  the effective date of this act and any contributions to the plan 
 83.25  that may be characterized as public funds within the meaning of 
 83.26  Minnesota Statutes, section 356.24, are hereby ratified and 
 83.27  validated. 
 83.28     Sec. 4.  [EFFECTIVE DATE.] 
 83.29     Sections 1 to 3 are effective on the day following final 
 83.30  enactment. 
 83.31                             ARTICLE 11
 83.32                       GENERAL RETIREMENT LAW
 83.33                 REORGANIZATION AND RECODIFICATION
 83.34                   PUBLIC RETIREMENT PLAN PURPOSE
 83.35     Section 1.  Minnesota Statutes 2000, section 356.001, is 
 83.36  amended to read: 
 84.1      356.001 [PURPOSE OF PUBLIC PLANS.] 
 84.2      Subdivision 1.  [EXCLUSIVE BENEFIT OF MEMBERS AND 
 84.3   BENEFICIARIES.] (a) The public plans and funds specified in 
 84.4   subdivision 4 are established to provide for the retirement of 
 84.5   their members and to provide funds for the beneficiaries of 
 84.6   members in the event of death of a member.  
 84.7      (b) The public plans and funds are established and ~~shall~~ 
 84.8   must be maintained for the exclusive benefit of the members and 
 84.9   the beneficiaries of the members.  Except as provided in 
 84.10  subdivisions 2 and 3, no part of the moneys of the plans and 
 84.11  funds ~~shall~~ may revert to the plan or fund or be used for or 
 84.12  diverted to purposes other than the exclusive benefit of the 
 84.13  members or their beneficiaries.  
 84.14     Subd. 2.  [ALLOWABLE EXPENSES.] The necessary, reasonable, 
 84.15  and direct expenses of maintaining, protecting, and 
 84.16  administering the public plan or fund, as authorized in the laws 
 84.17  governing the plan or fund, ~~shall~~ must be considered as 
 84.18  expenditures for the exclusive benefit of the members or their 
 84.19  beneficiaries. 
 84.20     Subd. 3.  [EFFECT OF AMENDMENTS OR TERMINATION.] (a) If a 
 84.21  public plan or fund ~~as~~ defined in subdivision 4 is terminated or 
 84.22  the plan or fund provisions are amended, no part of the moneys 
 84.23  held in the plan or fund ~~shall~~ may be used for or diverted to 
 84.24  any purpose other than the exclusive benefit of the members or 
 84.25  their beneficiaries, except as provided in this subdivision.  
 84.26     (b) If a plan or fund is terminated, all affected members 
 84.27  have a nonforfeitable interest in their benefits that were 
 84.28  accrued and funded to date.  The value of the accrued benefits 
 84.29  to be credited to the account of each affected member ~~shall~~ must 
 84.30  be calculated as of the date of termination and the funding 
 84.31  ratio of the plan or fund must be applied to the accrued benefit 
 84.32  of each affected member.  
 84.33     (c) The board of trustees of the plan or fund shall ~~then~~, 
 84.34  as soon as administratively feasible following the termination, 
 84.35  pay each eligible member or beneficiary on behalf of a member 
 84.36  the amount in the member's account in a lump sum.  In the case 
 85.1   of a member whose whereabouts is unknown, the board shall notify 
 85.2   the member at the last known address by certified mail with 
 85.3   return receipt requested advising the member of the member's 
 85.4   right to a pending distribution.  If the member cannot be 
 85.5   located in this manner, the board shall establish a custodial 
 85.6   account for the member's benefit in a federally insured bank, 
 85.7   savings association, or credit union in which the member's 
 85.8   account balance ~~shall~~ must be deposited.  If the board receives 
 85.9   proof of death of a member that is satisfactory to the board, 
 85.10  the account balance ~~shall~~ must be paid to the beneficiary of the 
 85.11  member.  
 85.12     Subd. 4.  [COVERED PLANS AND FUNDS.] This section applies 
 85.13  to all public pension and retirement plans and funds established 
 85.14  ~~pursuant to~~ under the laws of the state of Minnesota that 
 85.15  receive contributions from moneys derived from taxation.  
 85.16     Subd. 5.  [CONSTRUCTION.] Nothing contained in this section 
 85.17  ~~shall~~ may be construed to authorize, or otherwise imply, a 
 85.18  legislative policy or intent favoring the termination of any 
 85.19  plan or fund to which this section applies.  
 85.20             PUBLIC PENSION PLAN ACTUARIAL, FINANCIAL, 
 85.21                      AND INVESTMENT REPORTING
 85.22     Sec. 2.  Minnesota Statutes 2000, section 356.20, 
 85.23  subdivision 1, is amended to read: 
 85.24     Subdivision 1.  [REPORT REQUIRED.] (a) The governing or 
 85.25  managing board or administrative officials of the public pension 
 85.26  and retirement funds enumerated in subdivision 2 shall annually 
 85.27  prepare and file a financial report following the close of each 
 85.28  fiscal year.  
 85.29     (b) This requirement ~~shall~~ also ~~apply~~ applies to any plan 
 85.30  or fund which may be a successor to any organization so 
 85.31  enumerated or to any newly formed retirement plan, fund or 
 85.32  association operating under the control or supervision of any 
 85.33  public employee group, governmental unit, or institution 
 85.34  receiving a portion of its support through legislative 
 85.35  appropriations.  
 85.36     (c) The report ~~shall~~ must be prepared under the supervision 
 86.1   and at the direction of the management of each fund and ~~shall~~ 
 86.2   must be signed by the presiding officer of the managing board of 
 86.3   the fund and the chief administrative official of the fund.  
 86.4      Sec. 3.  Minnesota Statutes 2000, section 356.20, 
 86.5   subdivision 2, is amended to read: 
 86.6      Subd. 2.  [COVERED PUBLIC PENSION PLANS AND FUNDS.] This 
 86.7   section applies to the following public pension plans: 
 86.8      (1) the general state employees retirement ~~fund.~~ plan of 
 86.9   the Minnesota state retirement system; 
 86.10     (2) the general employees retirement plan of the public 
 86.11  employees retirement ~~fund.~~ association; 
 86.12     (3) the teachers retirement association~~.~~; 
 86.13     (4) the state patrol retirement ~~fund.~~ plan; 
 86.14     (5) the Minneapolis teachers retirement fund association~~.~~; 
 86.15     (6) the St. Paul teachers retirement fund association~~.~~; 
 86.16     (7) the Duluth teachers retirement fund association~~.~~; 
 86.17     (8) the Minneapolis employees retirement fund~~.~~; 
 86.18     (9) the University of Minnesota faculty retirement plan~~.~~; 
 86.19     (10) the University of Minnesota faculty supplemental 
 86.20  retirement plan~~.~~; 
 86.21     (11) the judges retirement fund~~.~~; 
 86.22     (12) ~~Any~~ a police or firefighter's relief association 
 86.23  ~~enumerated~~ specified or described in section 69.77, subdivision 
 86.24  1a, or 69.771, subdivision 1~~.~~; 
 86.25     (13) the public employees police and fire ~~fund.~~ plan of the 
 86.26  public employees retirement association; 
 86.27     (14) the correctional state employees retirement plan of 
 86.28  the Minnesota state retirement system ~~correctional officers~~ 
 86.29  ~~retirement fund.~~; and 
 86.30     (15) ~~public employees~~ the local government correctional 
 86.31  service retirement plan of the public employees retirement 
 86.32  association. 
 86.33     Sec. 4.  Minnesota Statutes 2000, section 356.20, 
 86.34  subdivision 3, is amended to read: 
 86.35     Subd. 3.  [FILING REQUIREMENT.] The financial report is a 
 86.36  public record.  A copy of the report or a synopsis of the report 
 87.1   containing the information required by this section ~~shall~~ must 
 87.2   be distributed annually to each member of the fund and to the 
 87.3   governing body of each governmental subdivision of the state 
 87.4   which makes employers contributions thereto or in whose behalf 
 87.5   taxes are levied for the employers' contribution.  A signed copy 
 87.6   of the report ~~shall~~ must be delivered to the executive director 
 87.7   of the legislative commission on pensions and retirement and to 
 87.8   the legislative reference library not later than six months 
 87.9   after the close of each fiscal year or one month following the 
 87.10  completion and delivery to the retirement fund of the actuarial 
 87.11  valuation report of the fund by the actuary retained by the 
 87.12  legislative commission on pensions and retirement, if 
 87.13  applicable, whichever is later.  
 87.14     Sec. 5.  Minnesota Statutes 2000, section 356.20, 
 87.15  subdivision 4, is amended to read: 
 87.16     Subd. 4.  [CONTENTS OF FINANCIAL REPORT.] (a) The financial 
 87.17  report required by this section must contain financial 
 87.18  statements and disclosures that indicate the financial 
 87.19  operations and position of the retirement plan and fund.  The 
 87.20  report must conform with generally accepted governmental 
 87.21  accounting principles, applied on a consistent basis.  The 
 87.22  report must be audited.  The report must include, as part of its 
 87.23  exhibits or footnotes, an actuarial disclosure item based on the 
 87.24  actuarial valuation calculations prepared by the 
 87.25  commission-retained actuary or by the actuary retained by the 
 87.26  retirement fund or plan, if applicable, according to applicable 
 87.27  actuarial requirements enumerated in section 356.215, and 
 87.28  specified in the most recent standards for actuarial work 
 87.29  adopted by the legislative commission on pensions and 
 87.30  retirement.  The accrued assets, the accrued liabilities, 
 87.31  including accrued reserves, and the unfunded actuarial accrued 
 87.32  liability of the fund or plan must be disclosed.  The disclosure 
 87.33  item must contain a declaration by the actuary retained by the 
 87.34  legislative commission on pensions and retirement or the actuary 
 87.35  retained by the fund or plan, whichever applies, specifying that 
 87.36  the required reserves for any retirement, disability, or 
 88.1   survivor benefits provided under a benefit formula are computed 
 88.2   in accordance with the entry age actuarial cost method and with 
 88.3   the most recent applicable standards for actuarial work adopted 
 88.4   by the legislative commission on pensions and retirement. 
 88.5      ~~(a)~~ (b) Assets of the fund or plan contained in the 
 88.6   disclosure item must include the following statement of the 
 88.7   actuarial value of current assets as defined in section 356.215, 
 88.8   subdivision 1: 
 88.9                                       Value         Value 
 88.10                                     at cost       at market
 88.11   Cash, cash equivalents, and  
 88.12     short-term securities           .........     ......... 
 88.13   Accounts receivable               .........     .........
 88.14   Accrued investment income         .........     .........  
 88.15   Fixed income investments          .........     ......... 
 88.16   Equity investments other 
 88.17     than real estate                .........     ......... 
 88.18   Real estate investments           .........     ......... 
 88.19   Equipment                         .........     ......... 
 88.20   Equity in the Minnesota 
 88.21     postretirement investment
 88.22     fund                            .........     ......... 
 88.23   Other                             .........     .........  
 88.24    
 88.25   Total assets 
 88.26     Value at cost                                 .........
 88.27     Value at market                               ......... 
 88.28     Value of current assets                       ......... 
 88.29     ~~(b)~~ (c) The unfunded actuarial accrued liability of the 
 88.30  fund or plan contained in the disclosure item must include the 
 88.31  following measures of unfunded actuarial accrued liability, 
 88.32  using the value of current assets:  
 88.33     (1) unfunded actuarial accrued liability, determined by 
 88.34  subtracting the current assets and the present value of future 
 88.35  normal costs from the total current and expected future benefit 
 88.36  obligations; and 
 89.1      (2) unfunded pension benefit obligation, determined by 
 89.2   subtracting the current assets from the actuarial present value 
 89.3   of credited projected benefits. 
 89.4      If the current assets of the fund or plan exceed the 
 89.5   actuarial accrued liabilities, the excess must be disclosed and 
 89.6   indicated as a surplus. 
 89.7      ~~(c)~~ (d) The pension benefit obligations schedule included 
 89.8   in the disclosure must contain the following information on the 
 89.9   benefit obligations: 
 89.10     (1) the pension benefit obligation, determined as the 
 89.11  actuarial present value of credited projected benefits on 
 89.12  account of service rendered to date, separately identified as 
 89.13  follows: 
 89.14           (i) for annuitants;
 89.15                 retirement annuities;
 89.16                 disability benefits;
 89.17                 surviving spouse and child benefits;
 89.18           (ii)  for former members without vested rights;
 89.19           (iii) for deferred annuitants' benefits, including 
 89.20                 any augmentation;
 89.21           (iv)  for active employees;
 89.22                 accumulated employee contributions,
 89.23                 including allocated investment income;
 89.24                 employer-financed benefits vested;
 89.25                 employer-financed benefits nonvested;
 89.26                 total pension benefit obligation; and
 89.27     (2) if there are additional benefits not appropriately 
 89.28  covered by the foregoing items of benefit obligations, a 
 89.29  separate identification of the obligation. 
 89.30     ~~(d)~~ (e) Any additional statements or exhibits or more 
 89.31  detailed or subdivided itemization of a disclosure item that 
 89.32  will enable the management of the fund to portray a true 
 89.33  interpretation of the fund's financial condition must be 
 89.34  included in the additional statements or exhibits. 
 89.35     Sec. 6.  Minnesota Statutes 2000, section 356.20, 
 89.36  subdivision 4a, is amended to read: 
 90.1      Subd. 4a.  [FINANCIAL REPORT FOR POLICE OR FIREFIGHTERS 
 90.2   RELIEF ASSOCIATION.] For any police or firefighter's relief 
 90.3   association referred to in subdivision 2, clause (12), a 
 90.4   financial report duly filed ~~pursuant to~~ and meeting the 
 90.5   requirements of section 69.051 ~~shall~~ must be deemed to have met 
 90.6   the requirements of subdivision 4. 
 90.7      Sec. 7.  Minnesota Statutes 2000, section 356.215, as 
 90.8   amended by Laws 2001, First Special Session chapter 10, article 
 90.9   11, section 18, is amended to read: 
 90.10     356.215 [ACTUARIAL VALUATIONS AND EXPERIENCE STUDIES.] 
 90.11     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of 
 90.12  sections 3.85 and 356.20 to 356.23, each of the terms in the 
 90.13  following paragraphs have the meaning given. 
 90.14     (b) "Actuarial valuation" means a set of calculations 
 90.15  prepared by the actuary retained by the legislative commission 
 90.16  on pensions and retirement if so required under section 3.85, or 
 90.17  otherwise, by an approved actuary, to determine the normal cost 
 90.18  and the accrued actuarial liabilities of a benefit plan, 
 90.19  according to the entry age actuarial cost method and based upon 
 90.20  stated assumptions including, but not limited to rates of 
 90.21  interest, mortality, salary increase, disability, withdrawal, 
 90.22  and retirement and to determine the payment necessary to 
 90.23  amortize over a stated period any unfunded accrued actuarial 
 90.24  liability disclosed as a result of the actuarial valuation of 
 90.25  the benefit plan. 
 90.26     (c) "Approved actuary" means a person who is regularly 
 90.27  engaged in the business of providing actuarial services and who 
 90.28  has at least 15 years of service to major public employee 
 90.29  pension or retirement funds or who is a fellow in the society of 
 90.30  actuaries.  
 90.31     (d) "Entry age actuarial cost method" means an actuarial 
 90.32  cost method under which the actuarial present value of the 
 90.33  projected benefits of each individual currently covered by the 
 90.34  benefit plan and included in the actuarial valuation is 
 90.35  allocated on a level basis over the service of the individual, 
 90.36  if the benefit plan is governed by section 69.773, or over the 
 91.1   earnings of the individual, if the benefit plan is governed by 
 91.2   any other law, between the entry age and the assumed exit age, 
 91.3   with the portion of ~~this~~ the actuarial present value which is 
 91.4   allocated to the valuation year to be the normal cost and the 
 91.5   portion of ~~this~~ the actuarial present value not provided for at 
 91.6   the valuation date by the actuarial present value of future 
 91.7   normal costs to be the actuarial accrued liability, with 
 91.8   aggregation in the calculation process to be the sum of the 
 91.9   calculated result for each covered individual and with 
 91.10  recognition given to any different benefit formulas which may 
 91.11  apply to various periods of service. 
 91.12     (e) "Experience study" means a report providing experience 
 91.13  data and an actuarial analysis of the adequacy of the actuarial 
 91.14  assumptions on which actuarial valuations are based. 
 91.15     (f) "Current assets" means: 
 91.16     (1) ~~for the July 1, 1999, actuarial valuation, the value of~~ 
 91.17  ~~all assets at cost, including realized capital gains or losses,~~ 
 91.18  ~~plus one-third of any unrealized capital gains or losses;~~ 
 91.19     ~~(2) for the July 1, 2000, actuarial valuation, the market~~ 
 91.20  ~~value of all assets as of June 30, 2000, reduced by:~~ 
 91.21     ~~(i) 60 percent of the difference between the market value~~ 
 91.22  ~~of all assets as of June 30, 1999, and the actuarial value of~~ 
 91.23  ~~assets used in the July 1, 1999, actuarial valuation, and~~ 
 91.24     ~~(ii) 80 percent of the difference between the actual net~~ 
 91.25  ~~change in the market value of assets between June 30, 1999, and~~ 
 91.26  ~~June 30, 2000, and the computed increase in the market value of~~ 
 91.27  ~~assets between June 30, 1999, and June 30, 2000, if the assets~~ 
 91.28  ~~had increased at the percentage preretirement interest rate~~ 
 91.29  ~~assumption used in the July 1, 1999, actuarial valuation;~~ 
 91.30     ~~(3)~~ for the July 1, 2001, actuarial valuation, the market 
 91.31  value of all assets as of June 30, 2001, reduced by: 
 91.32     (i) 30 percent of the difference between the market value 
 91.33  of all assets as of June 30, 1999, and the actuarial value of 
 91.34  assets used in the July 1, 1999, actuarial valuation; 
 91.35     (ii) 60 percent of the difference between the actual net 
 91.36  change in the market value of assets between June 30, 1999, and 
 92.1   June 30, 2000, and the computed increase in the market value of 
 92.2   assets between June 30, 1999, and June 30, 2000, if the assets 
 92.3   had increased at the percentage preretirement interest rate 
 92.4   assumption used in the July 1, 1999, actuarial valuation; and 
 92.5      (iii) 80 percent of the difference between the actual net 
 92.6   change in the market value of assets between June 30, 2000, and 
 92.7   June 30, 2001, and the computed increase in the market value of 
 92.8   assets between June 30, 2000, and June 30, 2001, if the assets 
 92.9   had increased at the percentage preretirement interest rate 
 92.10  assumption used in the July 1, 2000, actuarial valuation; 
 92.11     ~~(4)~~ (2) for the July 1, 2002, actuarial valuation, the 
 92.12  market value of all assets as of June 30, 2002, reduced by: 
 92.13     (i) ten percent of the difference between the market value 
 92.14  of all assets as of June 30, 1999, and the actuarial value of 
 92.15  assets used in the July 1, 1999, actuarial valuation; 
 92.16     (ii) 40 percent of the difference between the actual net 
 92.17  change in the market value of assets between June 30, 1999, and 
 92.18  June 30, 2000, and the computed increase in the market value of 
 92.19  assets between June 30, 1999, and June 30, 2000, if the assets 
 92.20  had increased at the percentage preretirement interest rate 
 92.21  assumption used in the July 1, 1999, actuarial valuation; 
 92.22     (iii) 60 percent of the difference between the actual net 
 92.23  change in the market value of assets between June 30, 2000, and 
 92.24  June 30, 2001, and the computed increase in the market value of 
 92.25  assets between June 30, 2000, and June 30, 2001, if the assets 
 92.26  had increased at the percentage preretirement interest rate 
 92.27  assumption used in the July 1, 2000, actuarial valuation; and 
 92.28     (iv) 80 percent of the difference between the actual net 
 92.29  change in the market value of assets between June 30, 2001, and 
 92.30  June 30, 2002, and the computed increase in the market value of 
 92.31  assets between June 30, 2001, and June 30, 2002, if the assets 
 92.32  had increased at the percentage preretirement interest rate 
 92.33  assumption used in the July 1, 2001, actuarial valuation; or 
 92.34     ~~(5)~~ (3) for any actuarial valuation after July 1, 2002, the 
 92.35  market value of all assets as of the preceding June 30, reduced 
 92.36  by: 
 93.1      (i) 20 percent of the difference between the actual net 
 93.2   change in the market value of assets between the June 30 that 
 93.3   occurred three years earlier and the June 30 that occurred four 
 93.4   years earlier and the computed increase in the market value of 
 93.5   assets over that fiscal year period if the assets had increased 
 93.6   at the percentage preretirement interest rate assumption used in 
 93.7   the actuarial valuation for the July 1 that occurred four years 
 93.8   earlier; 
 93.9      (ii) 40 percent of the difference between the actual net 
 93.10  change in the market value of assets between the June 30 that 
 93.11  occurred two years earlier and the June 30 that occurred three 
 93.12  years earlier and the computed increase in the market value of 
 93.13  assets over that fiscal year period if the assets had increased 
 93.14  at the percentage preretirement interest rate assumption used in 
 93.15  the actuarial valuation for the July 1 that occurred three years 
 93.16  earlier; 
 93.17     (iii) 60 percent of the difference between the actual net 
 93.18  change in the market value of assets between the June 30 that 
 93.19  occurred one year earlier and the June 30 that occurred two 
 93.20  years earlier and the computed increase in the market value of 
 93.21  assets over that fiscal year period if the assets had increased 
 93.22  at the percentage preretirement interest rate assumption used in 
 93.23  the actuarial valuation for the July 1 that occurred two years 
 93.24  earlier; and 
 93.25     (iv) 80 percent of the difference between the actual net 
 93.26  change in the market value of assets between the immediately 
 93.27  prior June 30 and the June 30 that occurred one year earlier and 
 93.28  the computed increase in the market value of assets over that 
 93.29  fiscal year period if the assets had increased at the percentage 
 93.30  preretirement interest rate assumption used in the actuarial 
 93.31  valuation for the July 1 that occurred one year earlier. 
 93.32     (g) "Unfunded actuarial accrued liability" means the total 
 93.33  current and expected future benefit obligations, reduced by the 
 93.34  sum of current assets and the present value of future normal 
 93.35  costs. 
 93.36     (h) "Pension benefit obligation" means the actuarial 
 94.1   present value of credited projected benefits, determined as the 
 94.2   actuarial present value of benefits estimated to be payable in 
 94.3   the future as a result of employee service attributing an equal 
 94.4   benefit amount, including the effect of projected salary 
 94.5   increases and any step rate benefit accrual rate differences, to 
 94.6   each year of credited and expected future employee service. 
 94.7      Subd. 2.  [REQUIREMENTS.] (a) It is the policy of the 
 94.8   legislature that it is necessary and appropriate to determine 
 94.9   annually the financial status of tax supported retirement and 
 94.10  pension plans for public employees.  To achieve this goal:  
 94.11     (1) the legislative commission on pensions and retirement 
 94.12  shall have prepared by the actuary retained by the commission 
 94.13  annual actuarial valuations of the retirement plans enumerated 
 94.14  in section 3.85, subdivision 11, paragraph (b), and quadrennial 
 94.15  experience studies of the retirement plans enumerated in section 
 94.16  3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7); 
 94.17  and 
 94.18     (2) the commissioner of finance may have prepared by the 
 94.19  actuary retained by the commission, two years after each set of 
 94.20  quadrennial experience studies, quadrennial projection 
 94.21  valuations of at least one of the retirement plans enumerated in 
 94.22  section 3.85, subdivision 11, paragraph (b), for which the 
 94.23  commissioner determines that the analysis may be beneficial.  
 94.24     (b) The governing or managing board or administrative 
 94.25  officials of each public pension and retirement fund or plan 
 94.26  enumerated in section 356.20, subdivision 2, clauses (9), (10), 
 94.27  and (12), shall have prepared by an approved actuary annual 
 94.28  actuarial valuations of their respective funds as provided in 
 94.29  this section.  This requirement also applies to any fund or plan 
 94.30  that is the successor to any organization enumerated in section 
 94.31  356.20, subdivision 2, or to the governing or managing board or 
 94.32  administrative officials of any newly formed retirement fund, 
 94.33  plan, or association operating under the control or supervision 
 94.34  of any public employee group, governmental unit, or institution 
 94.35  receiving a portion of its support through legislative 
 94.36  appropriations, and any local police or fire fund ~~coming within~~ 
 95.1   ~~the provisions of~~ to which section 356.216 applies. 
 95.2      Subd. 2a.  [PROJECTION VALUATION REQUIREMENTS.] (a) A 
 95.3   quadrennial projection valuation ~~required~~ authorized under 
 95.4   subdivision 2 is intended to serve as an additional analytical 
 95.5   tool with which policy makers may assess the future funding 
 95.6   status of public plans through forecasting and testing various 
 95.7   potential outcomes over time if certain plan assumptions or 
 95.8   valuation methods were to be modified.  
 95.9      (b) In consultation with the retirement fund directors, the 
 95.10  state economist, the state demographer, the commissioner of 
 95.11  finance, and the commissioner of employee relations, the actuary 
 95.12  retained by the legislative commission on pensions and 
 95.13  retirement shall perform the quadrennial projection valuations 
 95.14  on behalf of the commissioner of finance, testing future 
 95.15  implications for plan funding by modifying assumptions and 
 95.16  methods currently in place.  The commission-retained actuary 
 95.17  shall provide advice to the commissioner as to the periods over 
 95.18  which such projections should be made, the nature and scope of 
 95.19  the scenarios to be analyzed, and the measures of funding status 
 95.20  to be employed, and shall report the results of these analyses 
 95.21  in the same manner as for quadrennial experience studies. 
 95.22     Subd. 3.  [REPORTS.] (a) The actuarial valuations required 
 95.23  annually must be made as of the beginning of each fiscal year.  
 95.24     (b) Two copies of the valuation must be delivered to the 
 95.25  executive director of the legislative commission on pensions and 
 95.26  retirement, to the commissioner of finance and to the 
 95.27  legislative reference library, not later than the first day of 
 95.28  the sixth month occurring after the end of the previous fiscal 
 95.29  year.  
 95.30     (c) Two copies of a quadrennial experience study must be 
 95.31  filed with the executive director of the legislative commission 
 95.32  on pensions and retirement, with the commissioner of finance, 
 95.33  and with the legislative reference library, not later than the 
 95.34  first day of the 11th month occurring after the end of the last 
 95.35  fiscal year of the four-year period which the experience study 
 95.36  covers.  
 96.1      (d) For actuarial valuations and experience studies 
 96.2   prepared at the direction of the legislative commission on 
 96.3   pensions and retirement, two copies of the document must be 
 96.4   delivered to the governing or managing board or administrative 
 96.5   officials of the applicable public pension and retirement fund 
 96.6   or plan. 
 96.7      Subd. 4.  [ACTUARIAL VALUATION; CONTENTS.] (a) The 
 96.8   actuarial valuation must be made in conformity with the 
 96.9   requirements of the definition contained in subdivision 1 and 
 96.10  the most recent standards for actuarial work adopted by the 
 96.11  legislative commission on pensions and retirement.  
 96.12     (b) The actuarial valuation must measure all aspects of the 
 96.13  benefit plan of the fund in accordance with changes in benefit 
 96.14  plans, if any, and salaries reasonably anticipated to be in 
 96.15  force during the ensuing fiscal year.  The actuarial valuation 
 96.16  must be prepared in accordance with the entry age actuarial cost 
 96.17  method.  The actuarial valuation required under this section 
 96.18  must include the information required in subdivisions ~~4a~~ 5 to ~~4k~~ 
 96.19  15. 
 96.20     Subd. ~~4a~~ 5.  [NORMAL COST.] For a fund providing benefits 
 96.21  in whole or in part under a defined benefit plan, the actuarial 
 96.22  valuation must indicate the level normal cost of the benefits 
 96.23  provided ~~by~~ under the laws governing the fund as of the date of 
 96.24  the valuation, calculated in accordance with the entry age 
 96.25  actuarial cost method.  The normal cost must be expressed as a 
 96.26  level percentage of the present value of future payrolls of the 
 96.27  active participants of the fund as of the date of the valuation. 
 96.28     Subd. ~~4b~~ 6.  [ACCRUED LIABILITY.] For a fund providing 
 96.29  benefits under a defined benefit plan, the actuarial valuation 
 96.30  must contain an exhibit indicating the actuarial accrued 
 96.31  liabilities of the fund.  This figure is the present value of 
 96.32  future benefits~~,~~ reduced by the present value of future normal 
 96.33  costs, calculated in accordance with the entry age actuarial 
 96.34  cost method. 
 96.35     Subd. ~~4c~~ 7.  [DEFINED CONTRIBUTION PLAN ACCUMULATIONS.] For 
 96.36  each fund providing benefits under ~~the~~ a money purchase or 
 97.1   defined contribution plan, the actuarial valuation ~~shall~~ must 
 97.2   contain an exhibit indicating the member contributions 
 97.3   accumulated at interest, as apportioned to members accounts, to 
 97.4   the date of the valuation.  These accumulations ~~shall~~ must be 
 97.5   separately tabulated in a manner which properly reflects any 
 97.6   differences in money purchase or defined contribution annuity 
 97.7   rates which may apply. 
 97.8      Subd. ~~4d~~ 8.  [INTEREST AND SALARY ASSUMPTIONS.] (a) The 
 97.9   actuarial valuation must use the applicable following 
 97.10  preretirement interest assumption and the applicable following 
 97.11  postretirement interest assumption: 
 97.12                                     preretirement  postretirement 
 97.13                                     interest rate  interest rate 
 97.14              plan                      assumption     assumption 
 97.15       general state employees 
 97.16           retirement plan                  8.5%          6.0% 
 97.17       correctional state employees 
 97.18           retirement plan                  8.5           6.0 
 97.19       state patrol retirement plan         8.5           6.0 
 97.20       legislators retirement plan          8.5           6.0 
 97.21       elective state officers
 97.22           retirement plan                  8.5           6.0 
 97.23       judges retirement plan               8.5           6.0 
 97.24       general public employees 
 97.25           retirement plan                  8.5           6.0 
 97.26       public employees police and fire 
 97.27           retirement plan                  8.5           6.0 
 97.28       local government correctional 
 97.29           service retirement plan          8.5           6.0 
 97.30       teachers retirement plan             8.5           6.0 
 97.31       Minneapolis employees 
 97.32           retirement plan                  6.0           5.0 
 97.33       Duluth teachers retirement plan      8.5           8.5 
 97.34       Minneapolis teachers retirement
 97.35           plan                             8.5           8.5 
 97.36       St. Paul teachers retirement 
 97.37           plan                             8.5           8.5 
 97.38       Minneapolis police relief 
 97.39           association                      6.0           6.0 
 97.40       ~~other local~~ Fairmont police relief 
 97.41           ~~associations~~ association         5.0           5.0 
 97.42       Minneapolis fire department 
 97.43           relief association               6.0           6.0 
 97.44       ~~other local salaried firefighters~~ 
 97.45       Virginia fire department
 97.46       relief ~~associations~~ association      5.0           5.0 
 97.47       local monthly benefit volunteer 
 97.48           firefighters relief associations 5.0           5.0 
 97.49     (b) The actuarial valuation must use the applicable 
 97.50  following single rate future salary increase assumption, the 
 97.51  applicable following modified single rate future salary increase 
 97.52  assumption, or the applicable following graded rate future 
 97.53  salary increase assumption: 
 97.54     (1) single rate future salary increase assumption 
 98.1                                               future salary 
 98.2               plan                          increase assumption 
 98.3        legislators retirement plan                  5.0% 
 98.4        elective state officers retirement 
 98.5            plan                                     5.0 
 98.6        judges retirement plan                       5.0 
 98.7        Minneapolis police relief association        4.0 
 98.8        ~~other local~~ Fairmont police relief 
 98.9        ~~associations~~ association                     3.5 
 98.10       Minneapolis fire department relief 
 98.11           association                              4.0 
 98.12       ~~other local salaried firefighters~~  
 98.13           Virginia fire department
 98.14           relief ~~associations~~ association          3.5 
 98.15     (2) modified single rate future salary increase assumption 
 98.16                                              future salary 
 98.17                 plan                       increase assumption
 98.18           Minneapolis employees        the prior calendar year 
 98.19             retirement plan            amount increased first by 
 98.20                                        1.0198 percent to prior 
 98.21                                        fiscal year date and
 98.22                                        then increased by 4.0 
 98.23                                        percent annually for
 98.24                                        each future year
 98.25     (3) select and ultimate future salary increase assumption 
 98.26  or graded rate future salary increase assumption 
 98.27                                               future salary 
 98.28                 plan                       increase assumption 
 98.29       general state employees             select calculation and
 98.30           retirement plan                      assumption A 
 98.31       correctional state employees 
 98.32           retirement plan                      assumption H 
 98.33       state patrol retirement plan             assumption H 
 98.34       general public employees            select calculation and
 98.35           retirement plan                      assumption B 
 98.36       public employees police and fire 
 98.37           fund retirement plan                 assumption C 
 98.38       local government correctional service 
 98.39           retirement plan                      assumption H 
 98.40       teachers retirement plan                 assumption D 
 98.41       Duluth teachers retirement plan          assumption E 
 98.42       Minneapolis teachers retirement plan     assumption F 
 98.43       St. Paul teachers retirement plan        assumption G 
 98.44       
 98.45       The select calculation is:
 98.46       during the ten-year select period, ~~0.2~~ a designated percent
 98.47       is multiplied by the result of ten minus T, where T is 
 98.48       the number of completed years of service, and is added
 98.49       to the applicable future salary increase assumption.  The
 98.50       designated percent is 0.2 percent for the correctional state
 98.51       employees retirement plan, the state patrol retirement
 98.52       plan, the public employees police and fire plan, and the
 98.53       local government correctional service plan; 0.3 percent
 98.54       for the general state employees retirement plan, the
 98.55       general public employees retirement plan, the teachers
 98.56       retirement plan, the Duluth teachers retirement fund
 98.57       association, and the St. Paul teachers retirement fund
 98.58       association; and 0.4 percent for the Minneapolis teachers
 98.59       retirement fund association.
 98.60       
 98.61            The ultimate future salary increase assumption is:
 98.62       
 98.63       age  A     B      C     D     E     F     G      H 
 98.64       16  6.95% 6.95% 11.50% 8.20% 8.00% ~~7.50~~% ~~7.25~~% 7.7500
 98.65                                          6.50  6.90 
 98.66       17  6.90  6.90  11.50  8.15  8.00  ~~7.50~~  ~~7.25~~  7.7500
 99.1                                           6.50  6.90
 99.2        18  6.85  6.85  11.50  8.10  8.00  ~~7.50~~  ~~7.25~~  7.7500
 99.3                                           6.50  6.90
 99.4        19  6.80  6.80  11.50  8.05  8.00  ~~7.50~~  ~~7.25~~  7.7500
 99.5                                           6.50  6.90
 99.6        20  6.75  ~~6.75~~  11.50  ~~8.00~~  ~~8.00~~  ~~7.50~~  ~~7.25~~  7.7500
 99.7                  6.40         6.00  6.90  6.50  6.90
 99.8        21  ~~6.70~~  ~~6.70~~  11.50  ~~7.95~~  ~~8.00~~  ~~7.50~~  ~~7.25~~  7.1454
 99.9            6.75  6.40         6.00  6.90  6.50  6.90
 99.10       22  ~~6.65~~  ~~6.65~~  11.00  ~~7.90~~  ~~8.00~~  ~~7.50~~  ~~7.25~~  7.0725
 99.11           6.75  6.40         6.00  6.90  6.50  6.90
 99.12       23  6.75  6.40  10.50  6.00  6.85  6.50  6.85  7.0544
 99.13       24  ~~6.66~~  ~~6.55~~  10.00  ~~7.80~~  ~~7.80~~  ~~7.30~~  ~~7.20~~  7.0363
 99.14           6.75  6.40         6.00  6.80  6.50  6.80
 99.15       25  ~~6.50~~  ~~6.50~~   9.50  ~~7.75~~  ~~7.70~~  ~~7.20~~  ~~7.15~~  7.0000 
 99.16           6.75  6.40         6.00  6.75  6.50  6.75 
 99.17       26  ~~6.45~~  ~~6.45~~   9.20  ~~7.70~~  ~~7.60~~  ~~7.10~~  ~~7.10~~  7.0000
 99.18           6.75  6.36         6.00  6.70  6.50  6.70
 99.19       27  ~~6.40~~  ~~6.40~~   8.90  ~~7.65~~  ~~7.50~~  ~~7.00~~  ~~7.05~~  7.0000 
 99.20           6.75  6.32         6.00  6.65  6.50  6.65
 99.21       28  ~~6.35~~  ~~6.35~~   8.60  ~~7.60~~  ~~7.40~~  ~~6.90~~  ~~7.00~~  7.0000
 99.22           6.75  6.28         6.00  6.60  6.50  6.60
 99.23       29  ~~6.30~~  ~~6.30~~   8.30  ~~7.55~~  ~~7.30~~  ~~6.80~~  ~~6.95~~  7.0000
 99.24           6.75  6.24         6.00  6.55  6.50  6.55
 99.25       30  ~~6.25~~  ~~6.30~~   8.00  ~~7.50~~  ~~7.20~~  ~~6.70~~  ~~6.90~~  7.0000
 99.26           6.75  6.20         6.00  6.50  6.50  6.50
 99.27       31  ~~6.20~~  ~~6.25~~   7.80  ~~7.45~~  ~~7.10~~  ~~6.60~~  ~~6.85~~  7.0000
 99.28           6.75  6.16         6.00  6.45  6.50  6.45
 99.29       32  ~~6.15~~  ~~6.21~~   7.60  ~~7.40~~  ~~7.00~~  ~~6.50~~  ~~6.80~~  7.0000
 99.30           6.75  6.12         6.00  6.40  6.50  6.40
 99.31       33  ~~6.10~~  ~~6.17~~   7.40  ~~7.30~~  ~~6.90~~  ~~6.40~~  ~~6.75~~  7.0000
 99.32           6.75  6.08         6.00  6.35  6.50  6.35
 99.33       34  ~~6.05~~  ~~6.09~~   7.20  ~~7.10~~  ~~6.80~~  ~~6.30~~  ~~6.70~~  7.0000
 99.34           6.75  6.04         6.00  6.30  6.50  6.30
 99.35       35  ~~6.00~~  ~~6.05~~   7.00  ~~7.00~~  ~~6.70~~  ~~6.20~~  ~~6.65~~  7.0000
 99.36           6.75  6.00         6.00  6.25  6.50  6.25
 99.37       36  ~~6.95~~  ~~6.01~~   6.80  ~~6.85~~  ~~6.60~~  ~~6.10~~  ~~6.60~~  6.9019
 99.38           6.75  5.96         6.00  6.20  6.50  6.20
 99.39       37  ~~5.90~~  ~~5.97~~   6.60  ~~6.70~~  ~~6.50~~  ~~6.00~~  ~~6.55~~  6.8074
 99.40           6.75  5.92         6.00  6.15  6.50  6.15
 99.41       38  ~~5.85~~  ~~5.93~~   6.40  ~~6.55~~  ~~6.40~~  ~~5.90~~  ~~6.50~~  6.7125
 99.42           6.75  5.88         5.90  6.10  6.50  6.10
 99.43       39  ~~5.80~~  ~~5.89~~   6.20  ~~6.40~~  ~~6.30~~  ~~5.80~~  ~~6.40~~  6.6054
 99.44           6.75  5.84         5.80  6.05  6.50  6.05
 99.45       40  ~~5.75~~  ~~5.85~~   6.00  ~~6.25~~  ~~6.20~~  ~~5.70~~  ~~6.30~~  6.5000
 99.46           6.75  5.80         5.70  6.00  6.50  6.00
 99.47       41  ~~5.70~~  ~~5.81~~   5.90  ~~6.10~~  ~~6.10~~  ~~5.60~~  ~~6.20~~  6.3540
 99.48           6.75  5.76         5.60  5.90  6.50  5.95
 99.49       42  ~~5.65~~  ~~5.77~~   5.80  ~~5.95~~  ~~6.00~~  ~~5.50~~  ~~6.10~~  6.2087
 99.50           6.75  5.72         5.50  5.80  6.50  5.90
 99.51       43  ~~5.60~~  ~~5.73~~   5.70  ~~5.80~~  ~~5.90~~  ~~5.45~~  ~~6.00~~  6.0622
 99.52           6.65  5.68         5.40  5.70  6.50  5.85
 99.53       44  ~~5.55~~  ~~5.69~~   5.60  ~~5.65~~  ~~5.80~~  ~~5.40~~  ~~5.90~~  5.9048
 99.54           6.55  5.64         5.30  5.60  6.50  5.80
 99.55       45  ~~5.50~~  ~~5.65~~   5.50  ~~5.50~~  ~~5.70~~  ~~5.35~~  ~~5.80~~  5.7500
 99.56           6.45  5.60         5.20  5.50  6.50  5.75
 99.57       46  ~~5.45~~  ~~5.62~~   5.45  ~~5.45~~  ~~5.60~~  ~~5.30~~  ~~5.70~~  5.6940
 99.58           6.35  5.56         5.10  5.40  6.40  5.70
 99.59       47  ~~5.40~~  ~~5.59~~   5.40  ~~5.40~~  ~~5.50~~  ~~5.25~~  5.65  5.6375
 99.60           6.25  5.52         5.00  5.30  6.30
 99.61       48  ~~5.35~~  ~~5.56~~   5.35  ~~5.35~~  ~~5.45~~  ~~5.20~~  5.60  5.5822
 99.62           6.15  5.48         5.00  5.20  6.20
 99.63       49  ~~5.30~~  ~~5.53~~   5.30  ~~5.30~~  ~~5.40~~  ~~5.15~~  5.55  5.5404
 99.64           6.05  5.44         5.00  5.10  6.10
 99.65       50  ~~5.25~~  ~~5.50~~   5.25  ~~5.25~~  ~~5.35~~  ~~5.10~~  5.50  5.5000
 99.66           5.95  5.40         5.00  5.00  6.00
 99.67       51  ~~5.20~~  ~~5.45~~   5.25  ~~5.20~~  ~~5.30~~  ~~5.05~~  5.45  5.4384
 99.68           5.85  5.36         5.00  5.00  5.90
 99.69       52  ~~5.15~~  ~~5.40~~   5.25  ~~5.15~~  ~~5.25~~  ~~5.00~~  5.40  5.3776
 99.70           5.75  5.32         5.00  5.00  5.80
 99.71       53  ~~5.10~~  ~~5.35~~   5.25  ~~5.10~~  ~~5.25~~  ~~5.00~~  5.35  5.3167
100.1            5.65  5.28         5.00  5.00  5.70
100.2        54  ~~5.05~~  ~~5.30~~   5.25  ~~5.05~~  ~~5.25~~  ~~5.00~~  5.30  5.2826
100.3            5.55  5.24         5.00  5.00  5.60
100.4        55  ~~5.00~~  ~~5.25~~   5.25  5.00  ~~5.25~~  ~~5.00~~  5.25  5.2500 
100.5            5.45  5.20               5.00  5.50
100.6        56  ~~5.00~~  ~~5.20~~   5.25  5.00  ~~5.25~~  ~~5.00~~  ~~5.25~~  5.2500
100.7            5.35  5.16               5.00  5.40  5.20
100.8        57  ~~5.00~~  ~~5.15~~   5.25  5.00  ~~5.25~~  ~~5.00~~  ~~5.25~~  5.2500
100.9            5.25  5.12               5.00  5.30  5.15
100.10       58  ~~5.00~~  ~~5.10~~   5.25  ~~5.00~~  ~~5.25~~  ~~5.00~~  ~~5.25~~  5.2500
100.11           5.25  5.08         5.10  5.00  5.20  5.10
100.12       59  ~~5.00~~  ~~5.05~~   5.25  ~~5.00~~  ~~5.25~~  ~~5.00~~  ~~5.25~~  5.2500
100.13           5.25  5.04         5.20  5.00  5.10  5.05
100.14       60  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
100.15           5.25               5.30  5.00        5.00
100.16       61  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
100.17           5.25               5.40  5.00        5.00
100.18       62  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
100.19           5.25               5.50  5.00        5.00
100.20       63  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
100.21           5.25               5.60  5.00        5.00
100.22       64  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
100.23           5.25               5.70  5.00        5.00
100.24       65  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
100.25           5.25               5.70  5.00        5.00
100.26       66  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
100.27           5.25               5.70  5.00        5.00
100.28       67  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
100.29           5.25               5.70  5.00        5.00
100.30       68  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
100.31           5.25               5.70  5.00        5.00
100.32       69  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
100.33           5.25               5.70  5.00        5.00
100.34       70  ~~5.00~~  5.00   5.25  ~~5.00~~  ~~5.25~~  5.00  ~~5.25~~  5.2500
100.35           5.25               5.70  5.00        5.00
100.36       71  ~~5.00~~  5.00         ~~5.00~~
100.37           5.25               5.70
100.38     (c) The actuarial valuation must use the applicable 
100.39  following payroll growth assumption for calculating the 
100.40  amortization requirement for the unfunded actuarial accrued 
100.41  liability where the amortization retirement is calculated as a 
100.42  level percentage of an increasing payroll: 
100.43                                                   payroll growth
100.44                    plan                             assumption 
100.45       general state employees retirement plan          5.00% 
100.46       correctional state employees retirement plan     5.00 
100.47       state patrol retirement plan                     5.00 
100.48       legislators retirement plan                      5.00 
100.49       elective state officers retirement plan          5.00 
100.50       judges retirement plan                           5.00 
100.51       general public employees retirement plan         6.00 
100.52       public employees police and fire 
100.53           retirement plan                              6.00 
100.54       local government correctional service 
100.55           retirement plan                              6.00 
100.56       teachers retirement plan                         5.00 
100.57       Duluth teachers retirement plan                  5.00 
100.58       Minneapolis teachers retirement plan             5.00 
100.59       St. Paul teachers retirement plan                5.00 
100.60     Subd. ~~4e~~ 9.  [OTHER ASSUMPTIONS.] The actuarial valuation 
100.61  must use assumptions concerning mortality, disability, 
100.62  retirement, withdrawal, retirement age, and any other relevant 
101.1   demographic or economic factor.  These assumptions must be set 
101.2   at levels consistent with those determined in the most recent 
101.3   quadrennial experience study completed under subdivision ~~5~~ 16, 
101.4   if required, or representative of the best estimate of future 
101.5   experience, if a quadrennial experience study is not required.  
101.6   The actuarial valuation must contain an exhibit indicating any 
101.7   actuarial assumptions used in preparing the valuation report. 
101.8      Subd. ~~4f~~ 10.  [PUBLIC SECTOR ACCOUNTING DISCLOSURE 
101.9   INFORMATION.] The actuarial valuation must contain those 
101.10  actuarial calculations that are necessary to allow the 
101.11  retirement plan administration or participating employing units 
101.12  to prepare the pension-related portions of annual financial 
101.13  reporting that meet generally accepted accounting principles for 
101.14  the public sector.  
101.15     Subd. ~~4g~~ 11.  [AMORTIZATION CONTRIBUTIONS.] (a) In addition 
101.16  to the exhibit indicating the level normal cost, the actuarial 
101.17  valuation must contain an exhibit indicating the additional 
101.18  annual contribution sufficient to amortize the unfunded 
101.19  actuarial accrued liability.  For funds governed by chapters 3A, 
101.20  352, 352B, 352C, 353, 354, 354A, and 490, the additional 
101.21  contribution must be calculated on a level percentage of covered 
101.22  payroll basis by the established date for full funding in effect 
101.23  when the valuation is prepared.  For funds governed by chapter 
101.24  3A, sections 352.90 through 352.951, chapters 352B, 352C, 
101.25  sections 353.63 through 353.68, and chapters 353C, 354A, and 
101.26  490, the level percent additional contribution must be 
101.27  calculated assuming annual payroll growth of 6.5 percent.  For 
101.28  funds governed by sections 352.01 through 352.86 and chapter 
101.29  354, the level percent additional contribution must be 
101.30  calculated assuming an annual payroll growth of five percent.  
101.31  For the fund governed by sections 353.01 through 353.46, the 
101.32  level percent additional contribution must be calculated 
101.33  assuming an annual payroll growth of six percent.  For all other 
101.34  funds, the additional annual contribution must be calculated on 
101.35  a level annual dollar amount basis. 
101.36     (b) For any fund other than the Minneapolis employees 
102.1   retirement fund and the public employees retirement association 
102.2   general plan, if there has not been a change in the actuarial 
102.3   assumptions used for calculating the actuarial accrued liability 
102.4   of the fund, a change in the benefit plan governing annuities 
102.5   and benefits payable from the fund, a change in the actuarial 
102.6   cost method used in calculating the actuarial accrued liability 
102.7   of all or a portion of the fund, or a combination of the three, 
102.8   which change or changes by itself or by themselves without 
102.9   inclusion of any other items of increase or decrease produce a 
102.10  net increase in the unfunded actuarial accrued liability of the 
102.11  fund, the established date for full funding is the first 
102.12  actuarial valuation date occurring after June 1, 2020.  
102.13     (c) For any fund or plan other than the Minneapolis 
102.14  employees retirement fund and the public employees retirement 
102.15  association general plan, if there has been a change in any or 
102.16  all of the actuarial assumptions used for calculating the 
102.17  actuarial accrued liability of the fund, a change in the benefit 
102.18  plan governing annuities and benefits payable from the fund, a 
102.19  change in the actuarial cost method used in calculating the 
102.20  actuarial accrued liability of all or a portion of the fund, or 
102.21  a combination of the three, and the change or changes, by itself 
102.22  or by themselves and without inclusion of any other items of 
102.23  increase or decrease, produce a net increase in the unfunded 
102.24  actuarial accrued liability in the fund, the established date 
102.25  for full funding must be determined using the following 
102.26  procedure:  
102.27     (i) the unfunded actuarial accrued liability of the fund 
102.28  must be determined in accordance with the plan provisions 
102.29  governing annuities and retirement benefits and the actuarial 
102.30  assumptions in effect before an applicable change; 
102.31     (ii) the level annual dollar contribution or level 
102.32  percentage, whichever is applicable, needed to amortize the 
102.33  unfunded actuarial accrued liability amount determined under 
102.34  item (i) by the established date for full funding in effect 
102.35  before the change must be calculated using the interest 
102.36  assumption specified in subdivision ~~4d~~ 8 in effect before the 
103.1   change; 
103.2      (iii) the unfunded actuarial accrued liability of the fund 
103.3   must be determined in accordance with any new plan provisions 
103.4   governing annuities and benefits payable from the fund and any 
103.5   new actuarial assumptions and the remaining plan provisions 
103.6   governing annuities and benefits payable from the fund and 
103.7   actuarial assumptions in effect before the change; 
103.8      (iv) the level annual dollar contribution or level 
103.9   percentage, whichever is applicable, needed to amortize the 
103.10  difference between the unfunded actuarial accrued liability 
103.11  amount calculated under item (i) and the unfunded actuarial 
103.12  accrued liability amount calculated under item (iii) over a 
103.13  period of 30 years from the end of the plan year in which the 
103.14  applicable change is effective must be calculated using the 
103.15  applicable interest assumption specified in subdivision ~~4d~~ 8 in 
103.16  effect after any applicable change; 
103.17     (v) the level annual dollar or level percentage 
103.18  amortization contribution under item (iv) must be added to the 
103.19  level annual dollar amortization contribution or level 
103.20  percentage calculated under item (ii); 
103.21     (vi) the period in which the unfunded actuarial accrued 
103.22  liability amount determined in item (iii) is amortized by the 
103.23  total level annual dollar or level percentage amortization 
103.24  contribution computed under item (v) must be calculated using 
103.25  the interest assumption specified in subdivision ~~4d~~ 8 in effect 
103.26  after any applicable change, rounded to the nearest integral 
103.27  number of years, but not to exceed 30 years from the end of the 
103.28  plan year in which the determination of the established date for 
103.29  full funding using the procedure set forth in this clause is 
103.30  made and not to be less than the period of years beginning in 
103.31  the plan year in which the determination of the established date 
103.32  for full funding using the procedure set forth in this clause is 
103.33  made and ending by the date for full funding in effect before 
103.34  the change; and 
103.35     (vii) the period determined under item (vi) must be added 
103.36  to the date as of which the actuarial valuation was prepared and 
104.1   the date obtained is the new established date for full funding.  
104.2      (d) For the Minneapolis employees retirement fund, the 
104.3   established date for full funding is June 30, 2020. 
104.4      (e) For the general employees retirement plan of the public 
104.5   employees retirement association ~~general plan~~, the established 
104.6   date for full funding is June 30, 2031. 
104.7      (f) For the retirement plans for which the annual actuarial 
104.8   valuation indicates an excess of valuation assets over the 
104.9   actuarial accrued liability, the valuation assets in excess of 
104.10  the actuarial accrued liability must be recognized as a 
104.11  reduction in the current contribution requirements by an amount 
104.12  equal to the amortization of the excess expressed as a level 
104.13  percentage of pay over a 30-year period beginning anew with each 
104.14  annual actuarial valuation of the plan. 
104.15     Subd. ~~4h~~ 12.  [ACTUARIAL GAINS AND LOSSES.] The actuarial 
104.16  valuation must contain an exhibit consisting of an analysis by 
104.17  the actuary explaining the net increase or decrease in the 
104.18  unfunded actuarial accrued liability since the last valuation.  
104.19  The explanation must subdivide the net increase or decrease in 
104.20  the unfunded actuarial accrued liability into at least the 
104.21  following parts: 
104.22     ~~(a)~~ (1) increases or decreases in the unfunded actuarial 
104.23  accrued liability because of changes in benefits; 
104.24     ~~(b)~~ (2) increases and decreases in the unfunded actuarial 
104.25  accrued liability because of changes in actuarial assumptions; 
104.26     ~~(c)~~ (3) increases or decreases in the unfunded actuarial 
104.27  accrued liability attributable to actuarial gains or losses 
104.28  resulting from any experience deviations from the assumptions on 
104.29  which the valuation is based, as follows: 
104.30     (i) actual investment earnings; 
104.31     (ii) actual postretirement mortality rates; 
104.32     (iii) actual salary increase rates; and 
104.33     (iv) the remainder of the increase or decrease not 
104.34  attributable to any separate source; 
104.35     ~~(d)~~ (4) increases or decreases in unfunded actuarial 
104.36  accrued liability because of other reasons, including the effect 
105.1   of any amortization contribution paid or additional amortization 
105.2   contribution previously calculated but unpaid; and 
105.3      ~~(e)~~ (5) increases or decreases in unfunded actuarial 
105.4   accrued liability because of changes in eligibility requirements 
105.5   or groups included in the membership of the fund. 
105.6      Subd. ~~4i~~ 13.  [MEMBERSHIP TABULATION.] (a) The actuarial 
105.7   valuation must contain a tabulation of active membership and 
105.8   annuitants in the fund.  If the membership of a fund is under 
105.9   more than one general benefit program, a separate tabulation 
105.10  must be made for each general benefit program.  
105.11     (b) The tabulations must be prepared by the administration 
105.12  of the pension fund and must contain the following information: 
105.13  (1) Active members                               Number 
105.14       As of last valuation date
105.15                 New entrants
105.16             Total 
105.17       Separations from active service
105.18       Refund of contributions
105.19       Separation with deferred annuity
105.20       Separation with neither refund
105.21            nor deferred annuity
105.22       Disability
105.23       Death
105.24       Retirement with service annuity
105.25       Total separations
105.26       As of current valuation date                            
105.27  (2) Annuitants                                   Number          
105.28       As of last valuation date
105.29       New entrants
105.30       Total
105.31       Terminations
105.32       Deaths
105.33       Other
105.34       Total terminations
105.35       As of current valuation date
105.36     (c) The tabulation required under paragraph (b), clause 
106.1   (2), must be made separately for each of the following classes 
106.2   of benefit recipients: 
106.3      (1) service retirement annuitants; 
106.4      (2) disability benefit recipients; 
106.5      (3) survivor benefit recipients; and 
106.6      (4) deferred annuitants. 
106.7      Subd. ~~4j~~ 14.  [ADMINISTRATIVE EXPENSES.] (a) The actuarial 
106.8   valuation must indicate the administrative expenses of the fund, 
106.9   expressed both in dollars and as a percentage of covered payroll.
106.10     (b) Administrative expenses are the costs incurred by the 
106.11  retirement plans in the course of operating the plan, excluding 
106.12  investment expenses.  Investment expenses include all expenses 
106.13  incurred for the retention of professional external investment 
106.14  managers and professional investment consultants, custodian bank 
106.15  fees, investment transaction costs, and the costs incurred by 
106.16  the retirement plans to manage investment portfolios or assets 
106.17  internally.  Investment expenses must be deducted from the 
106.18  investment return used in the actuarial valuation, and must not 
106.19  be included in administrative expenses when calculating the 
106.20  allowance for expenses. 
106.21     Subd. ~~4k~~ 15.  [BENEFIT PLAN SUMMARY.] The actuarial 
106.22  valuation must contain a summary of the principal provisions of 
106.23  the benefit plan upon which the valuation is based. 
106.24     Subd. ~~5~~ 16.  [QUADRENNIAL EXPERIENCE STUDY; CONTENTS.] A 
106.25  quadrennial experience study, if required, must contain an 
106.26  ~~actuarial~~ analysis by the approved actuary of the experience of 
106.27  the fund and a comparison of the experience with the actuarial 
106.28  assumptions on which the most recent actuarial valuation of the 
106.29  retirement fund was based. 
106.30     Subd. ~~6~~ 17.  [ACTUARIAL SERVICES BY APPROVED ACTUARIES.] 
106.31  (a) The actuarial valuation or quadrennial experience study must 
106.32  be made and any actuarial consulting services for a retirement 
106.33  fund or plan must be provided by an approved actuary.  The 
106.34  actuarial valuation or quadrennial experience study must include 
106.35  a signed written declaration that it has been prepared according 
106.36  to sections 356.20 to 356.23 and according to the most recent 
107.1   standards for actuarial work adopted by the legislative 
107.2   commission on pensions and retirement.  
107.3      (b) Actuarial valuations~~,~~ or experience studies prepared by 
107.4   an approved actuary retained by a retirement fund or plan must 
107.5   be submitted to the legislative commission on pensions and 
107.6   retirement within ten days of the submission of the document to 
107.7   the retirement fund or plan. 
107.8      Subd. ~~7~~ 18.  [ESTABLISHMENT OF ACTUARIAL ASSUMPTIONS.] (a) 
107.9   The actuarial assumptions used for the preparation of actuarial 
107.10  valuations under this section that are other than those set 
107.11  forth in this section may be changed only with the approval of 
107.12  the legislative commission on pensions and retirement.  
107.13     (b) A change in the applicable actuarial assumptions may be 
107.14  proposed by the governing board of the applicable pension fund 
107.15  or relief association, by the actuary retained by the 
107.16  legislative commission on pensions and retirement, by the 
107.17  actuarial advisor to a pension fund governed by chapter 352, 
107.18  353, 354, or 354A, or by the actuary retained by a local police 
107.19  or firefighters relief association governed by sections 69.77 or 
107.20  69.771 to 69.776, if one is retained. 
107.21     Sec. 8.  Minnesota Statutes 2000, section 356.216, is 
107.22  amended to read: 
107.23     356.216 [CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE 
107.24  AND FIRE FUNDS.] 
107.25     (a) The provisions of section 356.215 ~~governing~~ that govern 
107.26  the contents of actuarial valuations ~~shall~~ must apply to any 
107.27  local police or fire pension fund or relief association required 
107.28  to make an actuarial report under this section, except as 
107.29  follows: 
107.30     (1) in calculating normal cost and other requirements, if 
107.31  required to be expressed as a level percentage of covered 
107.32  payroll, the salaries used in computing covered payroll ~~shall~~ 
107.33  must be the maximum rate of salary ~~from~~ on which retirement and 
107.34  survivorship credits and amounts of benefits are determined and 
107.35  from which any member contributions are calculated and deducted; 
107.36     (2) in lieu of the amortization date specified in section 
108.1   356.215, subdivision ~~4g~~ 11, the appropriate amortization target 
108.2   date specified in section 69.77, subdivision 2b, or 69.773, 
108.3   subdivision 4, clause (c), ~~shall~~ must be used in calculating any 
108.4   required amortization contribution; 
108.5      (3) in addition to the tabulation of active members and 
108.6   annuitants provided for in section 356.215, subdivision ~~4i~~ 13, 
108.7   the member contributions for active members for the calendar 
108.8   year and the prospective annual retirement annuities under the 
108.9   benefit plan for active members ~~shall~~ must be reported; 
108.10     (4) actuarial valuations required ~~pursuant to~~ under section 
108.11  69.773, subdivision 2, ~~shall~~ must be made at least every four 
108.12  years and actuarial valuations required ~~pursuant to~~ under 
108.13  section 69.77 shall be made annually; ~~and~~ 
108.14     (5) the actuarial balance sheet showing accrued assets 
108.15  valued at market value if the actuarial valuation is required to 
108.16  be prepared at least every four years or valued as current 
108.17  assets under section 356.215, subdivision 1, clause (6), or 
108.18  paragraph (b), whichever applies, if the actuarial valuation is 
108.19  required to be prepared annually, actuarial accrued liabilities, 
108.20  and the unfunded actuarial accrued liability ~~shall~~ must include 
108.21  the following required reserves: 
108.22       ~~(a)~~ (i) For active members 
108.23        1.  Retirement benefits 
108.24        2.  Disability benefits 
108.25        3.  Refund liability due to death or withdrawal 
108.26        4.  Survivors' benefits 
108.27       ~~(b)~~ (ii) For deferred annuitants' benefits 
108.28       ~~(c)~~ (iii) For former members without vested rights 
108.29       ~~(d)~~ (iv) For annuitants 
108.30        1.  Retirement annuities 
108.31        2.  Disability annuities 
108.32        3.  Surviving spouses' annuities 
108.33        4.  Surviving children's annuities 
108.34     In addition to those required reserves, separate items 
108.35  ~~shall~~ must be shown for additional benefits, if any, which may 
108.36  not be appropriately included in the reserves listed above~~.~~; and 
109.1      (6) actuarial valuations ~~shall be~~ are due by the first day 
109.2   of the seventh month after the end of the fiscal year which the 
109.3   actuarial valuation covers. 
109.4      (b) For ~~a~~ the Minneapolis firefighters relief association 
109.5   or the Minneapolis police relief association ~~in a city of the~~ 
109.6   ~~first class with a population of more than 300,000~~, the 
109.7   following provisions additionally apply: 
109.8      (1) in calculating the actuarial balance sheet, unfunded 
109.9   actuarial accrued liability, and amortization contribution of 
109.10  the relief association, "current assets" means the value of all 
109.11  assets at cost, including realized capital gains and losses, 
109.12  plus or minus, whichever applies, the average value of total 
109.13  unrealized capital gains or losses for the most recent 
109.14  three-year period ending with the end of the plan year 
109.15  immediately preceding the actuarial valuation report 
109.16  transmission date; and 
109.17     (2) in calculating the applicable portions of the actuarial 
109.18  valuation, an annual preretirement interest assumption of six 
109.19  percent, an annual postretirement interest assumption of six 
109.20  percent, and an annual salary increase assumption of four 
109.21  percent must be used. 
109.22     Sec. 9.  Minnesota Statutes 2000, section 356.217, is 
109.23  amended to read: 
109.24     356.217 [MODIFICATIONS IN ACTUARIAL SERVICES.] 
109.25     (a) The cost of any requested benefit projections prepared 
109.26  by the commission-retained actuary relating to the Minnesota 
109.27  postretirement investment fund ~~for~~ at the request of the state 
109.28  board of investment is payable by the state board of investment. 
109.29     (b) Actuarial valuations under section 356.215, for July 1, 
109.30  1991, and thereafter, are not required to have an individual 
109.31  commentary section.  The commentary section, if omitted from the 
109.32  individual plan actuarial ~~valuation~~ valuations, must be included 
109.33  in an appropriate generalized format as part of the report to 
109.34  the legislature under section 3.85, subdivision 11. 
109.35     (c) Actuarial valuations under section 356.215, for July 1, 
109.36  1991, and thereafter, are not required to contain separate 
110.1   actuarial valuation results for basic and coordinated programs 
110.2   unless each program has a membership of at least ten percent of 
110.3   the total membership of the fund.  Actuarial valuations under 
110.4   section 356.215, for July 1, 1991, and thereafter, are not 
110.5   required to contain cash flow forecasts. 
110.6      (d) Actuarial valuations of the public employees police and 
110.7   fire fund local consolidation accounts for July 1, 1991, and 
110.8   thereafter, are not required to contain separate tabulations or 
110.9   summaries of active member, service retirement, disability 
110.10  retirement, and survivor data for each local consolidation 
110.11  account. 
110.12     (e) The commission-retained actuary is: 
110.13     (1) required to publish experience findings for those 
110.14  retirement plans for which experience findings are required only 
110.15  on a quadrennial basis for the four-year period ending June 30, 
110.16  1992, and every four years thereafter; 
110.17     (2) not required to prepare a separate experience analysis 
110.18  or publish separate experience findings for basic and 
110.19  coordinated programs if separate actuarial valuation results for 
110.20  the programs are not required; and 
110.21     (3) not required to calculate investment rate of return 
110.22  experience results on any basis other than current asset value 
110.23  as defined in section 356.215, subdivision 1, ~~clause~~ 
110.24  ~~(6)~~ paragraph (f). 
110.25     Sec. 10.  Minnesota Statutes 2000, section 356.219, is 
110.26  amended to read: 
110.27     356.219 [DISCLOSURE OF PUBLIC PENSION PLAN INVESTMENT 
110.28  PORTFOLIO AND PERFORMANCE INFORMATION.] 
110.29     Subdivision 1.  [REPORT REQUIRED.] (a) Except as indicated 
110.30  in subdivision 4, the state board of investment, on behalf of 
110.31  the public pension funds and programs for which it is the 
110.32  investment authority, and any Minnesota public pension plan that 
110.33  is not fully invested through the state board of investment, 
110.34  including a local police or firefighters' relief association 
110.35  governed by sections 69.77 or 69.771 to 69.775, shall report the 
110.36  information specified in subdivision 3 to the state auditor.  
111.1   The state auditor may prescribe a form or forms for the purposes 
111.2   of the reporting requirements contained in this section. 
111.3      (b) A local police or firefighters' relief association 
111.4   governed by section 69.77 or sections 69.771 to 69.775 is fully 
111.5   invested during a given calendar year for purposes of this 
111.6   section if all assets of the applicable pension plan beyond 
111.7   sufficient cash equivalent investments to cover six months 
111.8   expected expenses are invested under section 11A.17.  The board 
111.9   of any fully invested public pension plan remains responsible 
111.10  for submitting investment policy statements and subsequent 
111.11  revisions as required by subdivision 3, paragraph (a). 
111.12     (c) For purposes of this section, the state board of 
111.13  investment is considered to be the investment authority for any 
111.14  Minnesota public pension fund required to be invested by the 
111.15  state board of investment under section 11A.23, or for any 
111.16  Minnesota public pension fund authorized to invest in the 
111.17  supplemental investment fund under section 11A.17 and which is 
111.18  fully invested by the state board of investment. 
111.19     Subd. 2.  [ASSET CLASS DEFINITION.] (a) For purposes of 
111.20  this section, "asset class" means any of the following asset 
111.21  groupings as authorized in applicable law, bylaws, or articles 
111.22  of incorporation: 
111.23     (1) cash and any cash equivalent investments with 
111.24  maturities of one year or less when issued; 
111.25     (2) debt securities with maturities greater than one year 
111.26  when issued, including but not limited to mortgage participation 
111.27  certificates and pools, asset backed securities, guaranteed 
111.28  investment contracts, and authorized government and corporate 
111.29  obligations of corporations organized under laws of the United 
111.30  States or any state, or the Dominion of Canada or its provinces; 
111.31     (3) stocks or convertible issues of any corporation 
111.32  organized under laws of the United States or any state, or the 
111.33  Dominion of Canada or its provinces, or any corporation listed 
111.34  on the New York Stock Exchange or the American Stock Exchange; 
111.35     (4) international stocks or convertible issues; 
111.36     (5) international debt securities; and 
112.1      (6) real estate and venture capital. 
112.2      (b) If the pension plan is investing under section 69.77, 
112.3   subdivision 2g, section 69.775, or any other applicable law, in 
112.4   open-end investment companies registered under the federal 
112.5   Investment Company Act of 1940, or in the Minnesota supplemental 
112.6   investment fund under section 11A.17, this investment must be 
112.7   included under an asset class indicated in paragraph (a), 
112.8   clauses (1) through (6), as appropriate.  If the investment 
112.9   vehicle includes underlying securities from more than one asset 
112.10  class as indicated by paragraph (a), clauses (1) through (6), 
112.11  the investment may be treated as a separate asset class. 
112.12     Subd. 3.  [CONTENT OF REPORTS.] (a) The report required by 
112.13  subdivision 1 must include a written statement of the investment 
112.14  policy in effect on June 30, 1997, if that statement has not 
112.15  been previously submitted.  Following that date, subsequent 
112.16  reports must include investment policy changes and the effective 
112.17  date of each policy change rather than a complete statement of 
112.18  investment policy, unless the state auditor requests submission 
112.19  of a complete current statement.  The report must also include 
112.20  the information required by the following paragraphs, as 
112.21  applicable. 
112.22     (b) If a public pension plan has a total market value of 
112.23  $10,000,000 or more as of the beginning of the calendar year, 
112.24  the report required by subdivision 1 must include the market 
112.25  value of the total portfolio and the market value of each 
112.26  investment account, investment portfolio, or asset class 
112.27  included in the pension fund as of the beginning of the calendar 
112.28  year and for each month, and the amount and date of each 
112.29  injection and withdrawal to the total portfolio and to each 
112.30  investment account, investment portfolio, or asset class.  If a 
112.31  public pension plan once files a report under this paragraph, it 
112.32  must continue reporting under this paragraph for any subsequent 
112.33  year in which the public pension plan is not fully invested as 
112.34  specified in subdivision 1, paragraph (b), even if asset values 
112.35  drop below $10,000,000 in market value in ~~a~~ that subsequent year.
112.36     (c) For public pension plans to which paragraph (b) 
113.1   applies, the report required by subdivision 1 must also include 
113.2   a calculation of the total time-weighted rate of return 
113.3   available from index-matching investments assuming the asset 
113.4   class performance targets and target asset mix indicated in the 
113.5   written statement of investment policy.  The provided 
113.6   information must include a description of indices used in the 
113.7   analyses and an explanation of why those indices are 
113.8   appropriate.  This paragraph does not apply to any fully 
113.9   invested plan, as defined by subdivision 1, paragraph (b).  
113.10  Reporting by the state board of investment under this paragraph 
113.11  is limited to information on the Minnesota public pension plans 
113.12  required to be invested by the state board of investment under 
113.13  section 11A.23. 
113.14     (d) If a public pension plan has a total market value of 
113.15  less than $10,000,000 as of the beginning of the calendar year 
113.16  and was never required to file under paragraph (b), the report 
113.17  required by subdivision 1 must include the amount and date of 
113.18  each total portfolio injection and withdrawal.  In addition, the 
113.19  report must include the market value of the total portfolio as 
113.20  of the beginning of the calendar year and for each quarter. 
113.21     (e) Any public pension plan reporting under paragraph (b) 
113.22  or (d) may include computed time-weighted rates of return with 
113.23  the report, in addition to all other required information, as 
113.24  applicable.  If these returns are supplied, the individual who 
113.25  computed the returns must certify that the returns are net of 
113.26  all costs and fees, including investment management fees, and 
113.27  that the procedures used to compute the returns are consistent 
113.28  with bank administration institute studies of investment 
113.29  performance measurement and association of investment management 
113.30  and research presentation standards. 
113.31     (f) For public pension plans reporting under paragraph (d), 
113.32  the public pension plan must retain supporting information 
113.33  specifying the date and amount of each injection and withdrawal 
113.34  to each investment account and investment portfolio.  The public 
113.35  pension plan must also retain the market value of each 
113.36  investment account and investment portfolio at the beginning of 
114.1   the calendar year and for each quarter.  Information that is 
114.2   required to be collected and retained for any given year or 
114.3   years under this paragraph must be submitted to the office of 
114.4   the state auditor if the office of the state auditor requests in 
114.5   writing that the information be submitted by a public pension 
114.6   plan or plans, or be submitted by the state board of investment 
114.7   for any plan or plans for which the state board of investment is 
114.8   the investment authority under this section.  If the state 
114.9   auditor requests information under this subdivision, and the 
114.10  public plan fails to comply, the pension plan ~~will be~~ is subject 
114.11  to penalties under subdivision 5, unless penalties are waived by 
114.12  the state auditor under that subdivision. 
114.13     Subd. 4.  [ALTERNATIVE REPORTING; CERTAIN PLANS.] In lieu 
114.14  of requirements in subdivision 3, the applicable administration 
114.15  for the individual retirement account plans under chapters 354B 
114.16  and 354D and for the University of Minnesota faculty retirement 
114.17  plan shall submit computed time-weighted rates of return to the 
114.18  office of the state auditor.  These time-weighted rates of 
114.19  return must cover the most recent complete calendar year, and 
114.20  must be computed separately for each investment option available 
114.21  to plan members.  To the extent feasible, the returns must be 
114.22  computed net of all investment costs, fees, and charges, so that 
114.23  the computed return reflects the net time-weighted return 
114.24  available to the investor.  If this is not practical, the 
114.25  existence of any remaining investment cost, fee, or charge which 
114.26  could further lower the net return must be disclosed.  The 
114.27  procedures used to compute the returns must be consistent with 
114.28  bank administration institute studies of investment performance 
114.29  measurement and association of investment management and 
114.30  research presentation standards, or, if applicable, securities 
114.31  exchange commission requirements.  The individual who computes 
114.32  the returns must certify that the supplied returns comply with 
114.33  this subdivision.  The applicable plan administrator must also 
114.34  submit, with the return information, the total amounts invested 
114.35  by the plan members, in aggregate, in each investment option as 
114.36  of the last day of the calendar year. 
115.1      Subd. 5.  [PENALTY FOR NONCOMPLIANCE.] Failure to comply 
115.2   with the reporting requirements of this section ~~shall~~ must 
115.3   result in a withholding of all state aid or state appropriation 
115.4   to which the pension plan may otherwise be directly or 
115.5   indirectly entitled until the pension plan has complied with the 
115.6   reporting requirements.  The state auditor shall instruct the 
115.7   commissioners of revenue and finance to withhold any state aid 
115.8   or state appropriation from any pension plan that fails to 
115.9   comply with the reporting requirements contained in this 
115.10  section, until the pension plan has complied with the reporting 
115.11  requirements.  The state auditor may waive the withholding of 
115.12  state aid or state appropriations if the state auditor 
115.13  determines in writing that compliance would create an excessive 
115.14  hardship for the pension plan. 
115.15     Subd. 6.  [INVESTMENT DISCLOSURE REPORT.] (a) The state 
115.16  auditor shall prepare an annual report to the legislature on the 
115.17  investment performance of the various public pension plans 
115.18  subject to this section.  The content of the report is specified 
115.19  in paragraphs (b) to (e). 
115.20     (b) For each public pension plan reporting under 
115.21  subdivision 3, paragraph (b), the state auditor shall compute 
115.22  and report total portfolio and asset class time-weighted rates 
115.23  of return, net of all investment-related costs and fees. 
115.24     (c) For each public pension plan reporting under 
115.25  subdivision 3, paragraph (d), the state auditor shall compute 
115.26  and report total portfolio time-weighted rates of return, net of 
115.27  all costs and fees.  If the state auditor has requested data for 
115.28  a plan under subdivision 3, paragraph (f), the state auditor may 
115.29  also compute and report asset class time-weighted rates of 
115.30  return, net of all costs and fees. 
115.31     (d) The report by the state auditor must include the 
115.32  information submitted by the pension plans under subdivision 3, 
115.33  paragraph (c), or a synopsis of that information. 
115.34     (e) The report by the state auditor may also include a 
115.35  presentation of multiyear performance, information collected 
115.36  under subdivision 4, and any other information or analysis 
116.1   deemed appropriate by the state auditor.  
116.2      Subd. 7.  [EXPENSE OF REPORT.] All administrative expenses 
116.3   incurred relating to the investment report by the state auditor 
116.4   described in subdivision 6 must be borne by the office of the 
116.5   state auditor and may not be charged back to the entities 
116.6   described in subdivisions 1 or 4. 
116.7      Subd. 8.  [TIMING OF REPORTS.] (a) For salaried firefighter 
116.8   relief associations, police relief associations, and volunteer 
116.9   firefighter relief associations, the information required under 
116.10  this section must be submitted by the due date for reports 
116.11  required under section 69.051, subdivision 1 or 1a, as 
116.12  applicable.  If a relief association satisfies the definition of 
116.13  a fully invested plan under subdivision 1, paragraph (b), for 
116.14  the calendar year covered by the report required under section 
116.15  69.051, subdivision 1 or 1a, as applicable, the chief 
116.16  administrative officer of the covered pension plan shall certify 
116.17  that compliance on a form prescribed by the state auditor.  The 
116.18  state auditor shall transmit annually to the state board of 
116.19  investment a list or lists of covered pension plans which 
116.20  submitted certifications~~,~~ in order to facilitate reporting by 
116.21  the state board of investment under paragraph (c) of this 
116.22  subdivision. 
116.23     (b) For the Minneapolis teachers retirement fund 
116.24  association, the St. Paul teachers retirement fund association, 
116.25  the Duluth teachers retirement fund association, the Minneapolis 
116.26  employees retirement fund, the University of Minnesota faculty 
116.27  supplemental retirement plan, and the applicable administrators 
116.28  for the University of Minnesota faculty retirement plan and the 
116.29  individual retirement account plans under chapters 354B and 
116.30  354D, the information required under this section must be 
116.31  submitted to the state auditor by June 1 of each year. 
116.32     (c) The state board of investment, on behalf of pension 
116.33  funds specified in subdivision 1, paragraph (c), must report 
116.34  information required under this section by September 1 of each 
116.35  year. 
116.36     Sec. 11.  Minnesota Statutes 2000, section 356.22, is 
117.1   amended to read: 
117.2      356.22 [INTERPRETATION.] 
117.3      Subdivision 1.  [PROVISION OF ADDITIONAL VALUATIONS.] No 
117.4   provision in sections 356.20 to 356.23 ~~shall~~ may be construed ~~to~~ 
117.5   in any way to limit any of the enumerated pension and retirement 
117.6   funds from furnishing additional actuarial valuations or 
117.7   experience studies, or additional data and actuarial 
117.8   calculations, as may be requested by the legislature or any 
117.9   standing committee or by the legislative commission on pensions 
117.10  and retirement. 
117.11     Subd. 2.  [ACCELERATED AMORTIZATION.] No provision in 
117.12  sections 356.20 to 356.23 ~~shall~~ may be construed to preclude any 
117.13  public pension and retirement fund enumerated in section 356.20, 
117.14  subdivision 2, from requesting, or the legislature from 
117.15  providing for, the amortization of any unfunded actuarial 
117.16  accrued liability in a shorter period of time than by the 
117.17  established date for full funding as determined ~~pursuant to~~ 
117.18  under section 356.215, subdivision ~~4g~~ 11.  
117.19     Subd. 3.  [ADDITIONAL REQUIRED VALUATIONS.] The legislature 
117.20  or any committee or commission ~~thereof now in existence or~~ 
117.21  ~~hereafter created~~ which has assigned to it the subject of public 
117.22  pensions or public retirement plans may require actuarial 
117.23  valuations and experience studies in conformity with the 
117.24  provisions of sections 356.20 to 356.23 from any public pension 
117.25  and retirement plan or fund, whether enumerated in sections 
117.26  356.20 to 356.23 or otherwise.  
117.27     Sec. 12.  Minnesota Statutes 2000, section 356.23, is 
117.28  amended to read: 
117.29     356.23 [SUPPLEMENTAL VALUATIONS; ALTERNATIVE REPORTS AND 
117.30  VALUATIONS.] 
117.31     Subdivision 1.  [SUPPLEMENTAL ACTUARIAL VALUATIONS.] Any 
117.32  supplemental actuarial valuations prepared on behalf of any 
117.33  governing or managing board of any pension and retirement fund 
117.34  enumerated in section 356.20, subdivision 2, by an approved 
117.35  actuary, ~~shall~~ must be prepared in accordance with the 
117.36  applicable provisions of sections 356.20 to 356.23 and with the 
118.1   standards adopted by the legislative commission on pensions and 
118.2   retirement.  Any pension and retirement fund which prepares an 
118.3   alternative actuarial valuation under subdivision 2 ~~shall~~ also 
118.4   must have a supplemental actuarial valuation prepared.  
118.5      Subd. 2.  [ALTERNATIVE REPORTS AND VALUATIONS.] In addition 
118.6   to the financial reports and actuarial valuations required by 
118.7   sections 356.20 to 356.23, the governing or managing board of 
118.8   any fund concerned may submit alternative reports and actuarial 
118.9   valuations for distribution to the legislature, any of its 
118.10  committees, or the legislative commission on pensions and 
118.11  retirement on a different basis or on different assumptions than 
118.12  are specified in sections 356.20 to 356.23.  The assumptions and 
118.13  basis of any alternative reports and valuations ~~shall~~ must be 
118.14  clearly stated in the document.  
118.15                  LIMITATIONS ON SUPPLEMENTAL AND  
118.16                       LOCAL RETIREMENT PLANS  
118.17     Sec. 13.  Minnesota Statutes 2001 Supplement, section 
118.18  356.24, subdivision 1, is amended to read: 
118.19     Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
118.20  for a school district or other governmental subdivision or state 
118.21  agency to levy taxes for, or to contribute public funds to a 
118.22  supplemental pension or deferred compensation plan that is 
118.23  established, maintained, and operated in addition to a primary 
118.24  pension program for the benefit of the governmental subdivision 
118.25  employees other than: 
118.26     (1) to a supplemental pension plan that was established, 
118.27  maintained, and operated before May 6, 1971; 
118.28     (2) to a plan that provides solely for group health, 
118.29  hospital, disability, or death benefits; 
118.30     (3) to the individual retirement account plan established 
118.31  by chapter 354B; 
118.32     (4) to a plan that provides solely for severance pay under 
118.33  section 465.72 to a retiring or terminating employee; 
118.34     (5) for employees other than personnel employed by the 
118.35  board of trustees of the Minnesota state colleges and 
118.36  universities and covered under the higher education supplemental 
119.1   retirement plan under chapter 354C, if the supplemental plan 
119.2   coverage is provided for in a personnel policy of the public 
119.3   employer or in the collective bargaining agreement between the 
119.4   public employer and the exclusive representative of public 
119.5   employees in an appropriate unit, in an amount matching employee 
119.6   contributions on a dollar for dollar basis, but not to exceed an 
119.7   employer contribution of $2,000 a year per employee; 
119.8      (i) to the state of Minnesota deferred compensation plan 
119.9   under section 352.96; or 
119.10     (ii) in payment of the applicable portion of the 
119.11  contribution made to any investment eligible under section 
119.12  403(b) of the Internal Revenue Code, if the employing unit has 
119.13  complied with any applicable pension plan provisions of the 
119.14  Internal Revenue Code with respect to the tax-sheltered annuity 
119.15  program during the preceding calendar year; 
119.16     (6) for personnel employed by the board of trustees of the 
119.17  Minnesota state colleges and universities and not covered by 
119.18  clause (5), to the supplemental retirement plan under chapter 
119.19  354C, if the supplemental plan coverage is provided for in a 
119.20  personnel policy or in the collective bargaining agreement of 
119.21  the public employer with the exclusive representative of the 
119.22  covered employees in an appropriate unit, in an amount matching 
119.23  employee contributions on a dollar for dollar basis, but not to 
119.24  exceed an employer contribution of $2,700 a year for each 
119.25  employee; 
119.26     (7) to a supplemental plan or to a governmental trust to 
119.27  save for postretirement health care expenses qualified for 
119.28  tax-preferred treatment under the Internal Revenue Code, if the 
119.29  supplemental plan coverage is provided for in a personnel policy 
119.30  or in the collective bargaining agreement of a public employer 
119.31  with the exclusive representative of the covered employees in an 
119.32  appropriate unit; ~~or~~ 
119.33     (8) to the laborer's national industrial pension fund for 
119.34  the employees of a governmental subdivision who are covered by a 
119.35  collective bargaining agreement that provides for coverage by 
119.36  that fund and that sets forth a fund contribution rate, but not 
120.1   to exceed an employer contribution of $2,000 per year per 
120.2   employee; 
120.3      (9) to the plumbers' and pipefitters' national pension fund 
120.4   for the employees of a governmental subdivision who are covered 
120.5   by a collective bargaining agreement that provides for coverage 
120.6   by that fund and that sets forth a fund contribution rate, but 
120.7   not to exceed an employer contribution of $2,000 per year per 
120.8   employee; 
120.9      (10) to the international union of operating engineers 
120.10  pension fund for the employees of a governmental subdivision who 
120.11  are covered by a collective bargaining agreement that provides 
120.12  for coverage by that fund and that sets forth a fund 
120.13  contribution rate, but not to exceed an employer contribution of 
120.14  $2,000 per year per employee; or 
120.15     (11) to a supplemental plan organized and operated under 
120.16  the federal Internal Revenue Code, as amended, that is wholly 
120.17  and solely funded by the employee's accumulated sick leave, 
120.18  accumulated vacation leave, and accumulated severance pay. 
120.19     Sec. 14.  Minnesota Statutes 2000, section 356.24, 
120.20  subdivision 1b, is amended to read: 
120.21     Subd. 1b.  [VENDOR RESTRICTIONS.] A personnel policy for 
120.22  unrepresented employees ~~or~~, a collective bargaining agreement 
120.23  for represented employees, or a school board for school district 
120.24  employees may establish limits on the number of vendors of plans 
120.25  covered by the exceptions set forth in subdivision 1 that it 
120.26  will utilize and conditions under which ~~the~~ those vendors may 
120.27  contact employees both during working hours and after working 
120.28  hours. 
120.29     Sec. 15.  Minnesota Statutes 2000, section 356.24, 
120.30  subdivision 1c, is amended to read: 
120.31     Subd. 1c.  [STATE BOARD OF INVESTMENT REVIEW.] (a) Any 
120.32  insurance company, mutual fund company, or similar company 
120.33  providing investments eligible under section 403(b) of the 
120.34  Internal Revenue Code and eligible to receive employer 
120.35  contributions under this section may request the state board of 
120.36  investment, in conjunction with the department of commerce, to 
121.1   review the financial standing of the company, the 
121.2   competitiveness of its investment options and returns, and the 
121.3   level of all charges and fees impacting those returns.  
121.4      (b) The state board of investment may establish a fee for 
121.5   each review.  The state board of investment must maintain and 
121.6   have available a list of all reviewed companies.  
121.7      (c) In reviewing companies under this section, the state 
121.8   board of investment must not be considered to be acting as a 
121.9   fiduciary or to be engaged in a fiduciary activity under chapter 
121.10  356A or common law. 
121.11     Sec. 16.  Minnesota Statutes 2000, section 356.24, 
121.12  subdivision 2, is amended to read: 
121.13     Subd. 2.  [LIMIT ON CERTAIN CONTRIBUTIONS OR BENEFIT 
121.14  CHANGES.] No change in benefits or employer contributions in a 
121.15  supplemental pension plan to which this section applies that 
121.16  occurs after May 6, 1971, is effective without prior legislative 
121.17  authorization. 
121.18     Sec. 17.  Minnesota Statutes 2000, section 356.245, is 
121.19  amended to read: 
121.20     356.245 [LOCAL ELECTED OFFICIALS.] 
121.21     An elected official who is covered by section 353.01, 
121.22  subdivision 2a, is eligible to participate in the state of 
121.23  Minnesota deferred compensation plan under section 356.24.  ~~A~~ 
121.24  The applicable local governmental unit may make the matching 
121.25  employer contributions authorized by that section on the part of 
121.26  a participating elected official. 
121.27     Sec. 18.  Minnesota Statutes 2000, section 356.25, is 
121.28  amended to read: 
121.29     356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 
121.30  EXCLUSIONS.] 
121.31     Notwithstanding any other provision of law or charter to 
121.32  the contrary, no city, county, public agency or instrumentality, 
121.33  or other political subdivision ~~shall, after August 1, 1975,~~ is 
121.34  required or permitted to establish for any of its employees ~~any~~ 
121.35  a local pension plan or fund financed in whole or in part from 
121.36  public funds, other than a volunteer firefighter's relief 
122.1   association that is established ~~pursuant to~~ under chapter 424A 
122.2   and is governed by sections 69.771 to 69.776. 
122.3            PUBLIC RETIREMENT PLAN PORTABILITY MECHANISMS 
122.4      Sec. 19.  Minnesota Statutes 2000, section 356.30, is 
122.5   amended to read: 
122.6      356.30 [COMBINED SERVICE ANNUITY.] 
122.7      Subdivision 1.  [ELIGIBILITY; COMPUTATION OF ANNUITY.] (a) 
122.8   Notwithstanding any provisions of the laws governing the 
122.9   retirement plans enumerated in subdivision 3, a person who has 
122.10  met the qualifications of paragraph (b) may elect to receive a 
122.11  retirement annuity from each enumerated retirement plan in which 
122.12  the person has at least one-half year of allowable service, 
122.13  based on the allowable service in each plan, subject to the 
122.14  provisions of paragraph (c). 
122.15     (b) A person may receive, upon retirement, a retirement 
122.16  annuity from each enumerated retirement plan in which the person 
122.17  has at least one-half year of allowable service, and 
122.18  augmentation of a deferred annuity calculated under the laws 
122.19  governing each public pension plan or fund named in subdivision 
122.20  3, from the date the person terminated all public service if: 
122.21     (1) the person has allowable service totaling an amount 
122.22  that allows the person to receive an annuity in any two or more 
122.23  of the enumerated plans; and 
122.24     (2) the person has not begun to receive an annuity from any 
122.25  enumerated plan or the person has made application for benefits 
122.26  from each applicable plan and the effective dates of the 
122.27  retirement annuity with each plan under which the person chooses 
122.28  to receive an annuity are within a one-year period.  
122.29     (c) The retirement annuity from each plan must be based 
122.30  upon the allowable service, accrual rates, and average salary in 
122.31  the applicable plan except as further specified or modified in 
122.32  the following clauses:  
122.33     (1) the laws governing annuities must be the law in effect 
122.34  on the date of termination from the last period of public 
122.35  service under a covered retirement plan with which the person 
122.36  earned a minimum of one-half year of allowable service credit 
123.1   during that employment; 
123.2      (2) the "average salary" on which the annuity from each 
123.3   covered plan in which the employee has credit in a formula plan 
123.4   ~~shall~~ must be based on the employee's highest five successive 
123.5   years of covered salary during the entire service in covered 
123.6   plans; 
123.7      (3) the accrual rates to be used by each plan must be those 
123.8   percentages prescribed by each plan's formula as continued for 
123.9   the respective years of allowable service from one plan to the 
123.10  next, recognizing all previous allowable service with the other 
123.11  covered plans; 
123.12     (4) the allowable service in all the plans must be combined 
123.13  in determining eligibility for and the application of each 
123.14  plan's provisions in respect to reduction in the annuity amount 
123.15  for retirement prior to normal retirement age; and 
123.16     (5) the annuity amount payable for any allowable service 
123.17  under a nonformula plan of a covered plan must not be affected, 
123.18  but such service and covered salary must be used in the above 
123.19  calculation.  
123.20     (d) This section does not apply to any person whose final 
123.21  termination from the last public service under a covered plan ~~is~~ 
123.22  ~~prior to~~ was before May 1, 1975.  
123.23     (e) For the purpose of computing annuities under this 
123.24  section, the accrual rates used by any covered plan, except the 
123.25  public employees police and fire plan, the judges' retirement 
123.26  fund, and the state patrol retirement plan, must not exceed the 
123.27  percent specified in section ~~356.19~~ 356.315, subdivision 4, per 
123.28  year of service for any year of service or fraction thereof.  
123.29  The formula percentage used by the judges' retirement fund must 
123.30  not exceed the ~~percent~~ percentage rate specified in section 
123.31  ~~356.19~~ 356.315, subdivision 8, per year of service for any year 
123.32  of service or fraction thereof.  The accrual rate used by the 
123.33  public employees police and fire plan and the state patrol 
123.34  retirement plan must not exceed the ~~percent~~ percentage rate 
123.35  specified in section ~~356.19~~ 356.315, subdivision 6, per year of 
123.36  service for any year of service or fraction thereof.  The 
124.1   accrual rate or rates used by the legislators retirement plan 
124.2   and the elective state officers retirement plan must not exceed 
124.3   2.5 percent, but this limit does not apply to the adjustment 
124.4   provided under section 3A.02, subdivision 1, paragraph (c), or 
124.5   352C.031, paragraph (b). 
124.6      (f) Any period of time for which a person has credit in 
124.7   more than one of the covered plans must be used only once for 
124.8   the purpose of determining total allowable service.  
124.9      (g) If the period of duplicated service credit is more than 
124.10  one-half year, or the person has credit for more than one-half 
124.11  year, with each of the plans, each plan must apply its formula 
124.12  to a prorated service credit for the period of duplicated 
124.13  service based on a fraction of the salary on which deductions 
124.14  were paid to that fund for the period divided by the total 
124.15  salary on which deductions were paid to all plans for the period.
124.16     (h) If the period of duplicated service credit is less than 
124.17  one-half year, or when added to other service credit with that 
124.18  plan is less than one-half year, the service credit must be 
124.19  ignored and a refund of contributions made to the person in 
124.20  accord with that plan's refund provisions. 
124.21     Subd. 2.  [REPAYMENT OF REFUNDS.] A person who has service 
124.22  credit in one of the ~~funds~~ retirement plans enumerated in 
124.23  subdivision 3 and who is employed or was formerly employed in a 
124.24  position covered by one of these ~~funds~~ covered plans but also 
124.25  has received a refund from any other of these ~~funds~~ covered 
124.26  plans, may repay the refund to the respective ~~fund~~ plan under 
124.27  terms and conditions that are consistent with the laws governing 
124.28  the other ~~fund~~ plan, except that the person need not be a 
124.29  currently contributing member of the ~~fund~~ plan to which the 
124.30  refund is repaid at the time the repayment is made.  Unless 
124.31  otherwise provided by statute, the repayment of a refund under 
124.32  this subdivision may only be made within six months following 
124.33  termination of employment from a position covered by one of the 
124.34  ~~funds~~ covered plans enumerated in subdivision 3 or before the 
124.35  date of retirement from the ~~fund~~ plan to which the refund is 
124.36  repaid, whichever is earlier. 
125.1      Subd. 2a.  [PURCHASES OF PRIOR SERVICE.] If a purchase of 
125.2   prior service is made under the provisions of Laws 1988, chapter 
125.3   709, article 3, or any similar special or general law provision 
125.4   which allows a purchase of service credit in any of the ~~funds~~ 
125.5   retirement plans enumerated in subdivision 3, the amount of 
125.6   required reserves calculated as prescribed in Laws 1988, chapter 
125.7   709, article 3, must be paid to each ~~fund~~ plan based on the 
125.8   amount of benefit increase payable from that ~~fund~~ plan as a 
125.9   result of the purchase of prior service. 
125.10     Subd. 3.  [COVERED ~~FUNDS~~ PLANS.] This section applies to 
125.11  the following retirement ~~funds~~ plans: 
125.12     (1) the general state employees retirement ~~fund~~ plan of the 
125.13  Minnesota state retirement system, established ~~pursuant to~~ under 
125.14  chapter 352; 
125.15     (2) the correctional state employees retirement ~~program~~ 
125.16  plan of the Minnesota state retirement system, 
125.17  established ~~pursuant to~~ under chapter 352; 
125.18     (3) the unclassified employees retirement ~~plan~~ program, 
125.19  established ~~pursuant to~~ under chapter 352D; 
125.20     (4) the state patrol retirement ~~fund~~ plan, established 
125.21  ~~pursuant to~~ under chapter 352B; 
125.22     (5) the legislators retirement plan, established ~~pursuant~~ 
125.23  ~~to~~ under chapter 3A; 
125.24     (6) the elective state officers' retirement plan, 
125.25  established ~~pursuant to~~ under chapter 352C; 
125.26     (7) the general employees retirement plan of the public 
125.27  employees retirement association, established ~~pursuant to~~ under 
125.28  chapter 353; 
125.29     (8) the public employees police and fire ~~fund~~ retirement 
125.30  plan of the public employees retirement association, established 
125.31  ~~pursuant to~~ under chapter 353; 
125.32     (9) ~~public employees~~ the local government correctional 
125.33  service retirement plan of the public employees retirement 
125.34  association, established ~~pursuant to~~ under chapter 353E; 
125.35     (10) the teachers retirement association, established 
125.36  ~~pursuant to~~ under chapter 354; 
126.1      (11) the Minneapolis employees retirement fund, established 
126.2   ~~pursuant to~~ under chapter 422A; 
126.3      (12) the Minneapolis teachers retirement fund association, 
126.4   established ~~pursuant to~~ under chapter 354A; 
126.5      (13) the St. Paul teachers retirement fund association, 
126.6   established ~~pursuant to~~ under chapter 354A; 
126.7      (14) the Duluth teachers retirement fund association, 
126.8   established ~~pursuant to~~ under chapter 354A; and 
126.9      (15) the judges' retirement fund, established by sections 
126.10  490.121 to 490.132. 
126.11     Sec. 20.  Minnesota Statutes 2000, section 356.302, is 
126.12  amended to read: 
126.13     356.302 [DISABILITY BENEFIT WITH COMBINED SERVICE.] 
126.14     Subdivision 1.  [DEFINITIONS.] (a) The terms used in this 
126.15  section are defined in this subdivision. 
126.16     (b) "Average salary" means the highest average of covered 
126.17  salary for the appropriate period of credited service that is 
126.18  required for the calculation of a disability benefit by the 
126.19  covered retirement plan and that is drawn from any period of 
126.20  credited service and successive years of covered salary in a 
126.21  covered retirement plan. 
126.22     (c) "Covered retirement plan" or "plan" means a retirement 
126.23  plan listed in subdivision 7. 
126.24     (d) "Duty-related" means a disabling illness or injury that 
126.25  occurred while the person was actively engaged in employment 
126.26  duties or that arose out of the person's active employment 
126.27  duties. 
126.28     (e) "General employee retirement plan" means a covered 
126.29  retirement plan listed in subdivision 7, clauses (1) to (8) and 
126.30  (13). 
126.31     (f) "Occupationally disabled" means the condition of having 
126.32  a medically determinable physical or mental impairment that 
126.33  makes a person unable to satisfactorily perform the minimum 
126.34  requirements of the person's employment position or a 
126.35  substantially similar employment position. 
126.36     (g) "Public safety employee retirement plan" means a 
127.1   covered retirement plan listed in subdivision 7, clauses (9) to 
127.2   ~~(11)~~ (12). 
127.3      (h) "Totally and permanently disabled" means the condition 
127.4   of having a medically determinable physical or mental impairment 
127.5   that makes a person unable to engage in any substantial gainful 
127.6   activity and that is expected to continue or has continued for a 
127.7   period of at least one year or that is expected to result 
127.8   directly in the person's death. 
127.9      Subd. 2.  [ENTITLEMENT.] Notwithstanding any provision of 
127.10  law to the contrary governing any covered retirement plan, a 
127.11  member of a covered retirement plan may receive a combined 
127.12  service disability benefit from each covered retirement plan in 
127.13  which the person has credit for at least one-half year of 
127.14  allowable service if that person meets the applicable qualifying 
127.15  conditions.  Subdivision 3 applies to a member of a general 
127.16  employee retirement plan.  Subdivision 4 applies to a member of 
127.17  a public safety employee retirement plan.  Subdivision 5 applies 
127.18  to a member of a covered retirement plan with both general 
127.19  employee and public safety employee retirement plan service. 
127.20     Subd. 3.  [GENERAL EMPLOYEE PLAN ELIGIBILITY REQUIREMENTS.] 
127.21  A disabled member of a covered retirement plan who has credit 
127.22  for allowable service in a combination of general employee 
127.23  retirement plans is entitled to a combined service disability 
127.24  benefit if the member: 
127.25     (1) is less than 65 years of age on the date of the 
127.26  application for the disability benefit; 
127.27     (2) has become totally and permanently disabled; 
127.28     (3) has credit for allowable service in any combination of 
127.29  general employee retirement plans totaling at least three years; 
127.30     (4) has credit for at least one-half year of allowable 
127.31  service with the current general employee retirement plan before 
127.32  the commencement of the disability; 
127.33     (5) has at least three continuous years of allowable 
127.34  service credit by the general employee retirement plan or has at 
127.35  least a total of three years of allowable service credit by a 
127.36  combination of general employee retirement plans in a 72-month 
128.1   period during which no interruption of allowable service credit 
128.2   from a termination of employment exceeded 29 days; and 
128.3      (6) ~~is~~ was not receiving a retirement annuity or disability 
128.4   benefit from any covered general employee retirement plan at the 
128.5   time of the commencement of the disability.  
128.6      Subd. 4.  [PUBLIC SAFETY PLAN ELIGIBILITY REQUIREMENTS.] A 
128.7   disabled member of a covered retirement plan who has credit for 
128.8   allowable service in a combination of public safety employee 
128.9   retirement plans is entitled to a combined service disability 
128.10  benefit if the member: 
128.11     (1) has become occupationally disabled; 
128.12     (2) has credit for allowable service in any combination of 
128.13  public safety employee retirement plans totaling at least one 
128.14  year if the disability is duty-related or totaling at least 
128.15  three years if the disability is not duty-related; 
128.16     (3) has credit for at least one-half year of allowable 
128.17  service with the current public safety employee retirement plan 
128.18  before the commencement of the disability; and 
128.19     (4) ~~is~~ was not receiving a retirement annuity or disability 
128.20  benefit from any covered public safety employee retirement plan 
128.21  at the time of the commencement of the disability. 
128.22     Subd. 5.  [GENERAL AND PUBLIC SAFETY PLAN ELIGIBILITY 
128.23  REQUIREMENTS.] A disabled member of a covered retirement plan 
128.24  who has credit for allowable service in a combination of both a 
128.25  public safety employee retirement ~~plans~~ plan and general 
128.26  employee retirement ~~plans~~ plan must meet the qualifying 
128.27  requirements in subdivisions 3 and 4 to receive a combined 
128.28  service disability benefit from the applicable general employee 
128.29  and public safety employee retirement plans, except that the 
128.30  person need only be a member of a covered retirement plan at the 
128.31  time of the commencement of the disability and that the minimum 
128.32  allowable service requirements of subdivisions 3, clauses (3) 
128.33  and (5), and 4, clauses (3) and (4), may be met in any 
128.34  combination of covered retirement plans. 
128.35     Subd. 6.  [COMBINED SERVICE DISABILITY BENEFIT 
128.36  COMPUTATION.] (a) The combined service disability benefit from 
129.1   each covered retirement plan must be based on the allowable 
129.2   service in each retirement plan, except as specified in 
129.3   paragraphs (b) to (f). 
129.4      (b) The disability benefit must be governed by the law in 
129.5   effect for each covered retirement plan on the date of the 
129.6   commencement of the member's most recent qualifying disability 
129.7   as a member of a covered retirement plan. 
129.8      (c) All plans must base the disability benefit on the same 
129.9   average salary figure to the extent practicable. 
129.10     (d) If the method of the covered retirement plan used to 
129.11  compute a disability benefit varies based on the length of 
129.12  allowable service credit, the benefit accrual formula 
129.13  percentages used by the plan must recognize the allowable 
129.14  service credit in the plan as a continuation of any previous 
129.15  allowable service credit with other covered retirement plans. 
129.16     (e) If the covered retirement plan is a defined benefit or 
129.17  formula plan and the method used to compute a disability benefit 
129.18  does not vary based on the length of allowable service credit, 
129.19  the portion of the specified benefit amount from the plan must 
129.20  bear the same proportion to the total specified benefit amount 
129.21  as the allowable service credit in that plan bears to the total 
129.22  allowable service credit in all covered retirement plans.  If 
129.23  the covered retirement plan is a defined contribution or 
129.24  nonformula plan, the disability benefit amount for allowable 
129.25  service under the plan is not affected, but the service and the 
129.26  covered salary under the plan must be used as applicable in 
129.27  calculations by other covered retirement plans. 
129.28     (f) A period for which a person has allowable service 
129.29  credit in more than one covered retirement plan must be used 
129.30  only once in determining the total allowable service credit for 
129.31  calculating the combined service disability benefit, with any 
129.32  period of duplicated service credit handled ~~under~~ as provided in 
129.33  section 356.30, subdivision 1, ~~clause (3), items (i) and~~ 
129.34  ~~(j)~~ paragraphs (g) and (h). 
129.35     (g) If a person is entitled to a minimum benefit payable 
129.36  from one of the public pension plans ~~named~~ enumerated in section 
130.1   356.30, subdivision 3, the person may receive additional credit 
130.2   for only those years of service in another covered pension plan 
130.3   that, when added to the years of service in the pension plan 
130.4   that is paying the minimum benefit, exceed the years of service 
130.5   on which the minimum benefit is based. 
130.6      (h) A partially employed recipient of a disability benefit 
130.7   must have any current reemployment income plus the total 
130.8   disability ~~payment~~ payments from all plans ~~listed~~ enumerated in 
130.9   subdivision 7 added together, and then compared to their final 
130.10  salary rate as a public employee.  If current income plus the 
130.11  total disability payments exceed the final salary of the person 
130.12  at the time of retirement, then disability benefit payments from 
130.13  all the plans ~~will~~ must be reduced on a prorated basis relative 
130.14  to the years of service in each fund so that earnings plus 
130.15  benefit payments do not exceed ~~their~~ the final salary rate. 
130.16     Subd. 7.  [COVERED RETIREMENT PLANS.] This section applies 
130.17  to the following retirement plans: 
130.18     (1) the general state employees retirement ~~fund~~ plan of the 
130.19  Minnesota state retirement system, established by chapter 352; 
130.20     (2) the unclassified state employees retirement ~~plan~~ 
130.21  program of the Minnesota state retirement system, established by 
130.22  chapter 352D; 
130.23     (3) the general employees retirement plan of the public 
130.24  employees retirement association, established by chapter 353; 
130.25     (4) the teachers retirement association, established by 
130.26  chapter 354; 
130.27     (5) the Duluth teachers retirement fund association, 
130.28  established by chapter 354A; 
130.29     (6) the Minneapolis teachers retirement fund association, 
130.30  established by chapter 354A; 
130.31     (7) the St. Paul teachers retirement fund association, 
130.32  established by chapter 354A; 
130.33     (8) the Minneapolis employees retirement fund, established 
130.34  by chapter 422A; 
130.35     (9) the state correctional employees retirement plan of the 
130.36  Minnesota state retirement system, established by chapter 352; 
131.1      (10) the state patrol retirement ~~fund~~ plan, established by 
131.2   chapter 352B; 
131.3      (11) the public employees police and fire ~~fund~~ plan of the 
131.4   public employees retirement association, established by chapter 
131.5   353; 
131.6      (12) ~~public employees~~ the local government correctional 
131.7   service retirement plan of the public employees retirement 
131.8   association, established by chapter 353E; and 
131.9      (13) the judges' retirement ~~fund~~ plan, established by 
131.10  sections 490.121 to 490.132. 
131.11     Sec. 21.  Minnesota Statutes 2000, section 356.303, is 
131.12  amended to read: 
131.13     356.303 [SURVIVOR BENEFIT WITH COMBINED SERVICE.] 
131.14     Subdivision 1.  [DEFINITIONS.] (a) The terms used in this 
131.15  section are defined in this subdivision. 
131.16     (b) "Average salary" means the highest average of covered 
131.17  salary for the appropriate period of credited service that is 
131.18  required for the calculation of a survivor annuity or a survivor 
131.19  benefit, whichever applies, by the covered retirement plan and 
131.20  that is drawn from any period of credited service and covered 
131.21  salary in a covered retirement plan. 
131.22     (c) "Covered retirement plan" or "plan" means a retirement 
131.23  plan ~~listed~~ enumerated in subdivision 4. 
131.24     (d) "Deceased member" means a person who on the date of 
131.25  death was an active member of a covered retirement plan and who 
131.26  has reached the minimum age, if any, that is required by the 
131.27  covered retirement plan as part of qualifying for a survivor 
131.28  annuity or survivor benefit. 
131.29     (e) "Surviving child" means a child of a deceased member 
131.30  (1) who is unmarried~~,~~; (2) who has not reached age 18, or, if a 
131.31  full-time student, who has not reached a higher age as specified 
131.32  ~~in~~ by the applicable covered retirement plan~~,~~; and (3) if 
131.33  specified by that plan, who was actually dependent on the 
131.34  deceased member for a specified proportion of support before the 
131.35  deceased member's death.  "Surviving child" includes a natural 
131.36  child, an adopted child, or a child of a deceased member who is 
132.1   conceived during the member's lifetime and who is born after the 
132.2   member's death. 
132.3      (f) "Surviving spouse" means the legally married husband or 
132.4   wife, whichever applies, of the deceased member who was residing 
132.5   with the deceased member on the date of death and who, if 
132.6   specified by the applicable covered retirement plan, had been 
132.7   married to the deceased member for a specified period of time 
132.8   before the death of the deceased member. 
132.9      (g) "Survivor annuity" means the entitlement to a future 
132.10  amount payable to a survivor as the remainder interest of an 
132.11  optional annuity form implied by law as having been chosen by a 
132.12  deceased member before the date of death and effective on the 
132.13  date of death or provided automatically. 
132.14     (h) "Survivor benefit" means an entitlement to a future 
132.15  amount payable to a survivor that is not included in the 
132.16  definition of a survivor annuity. 
132.17     Subd. 2.  [ENTITLEMENT; ELIGIBILITY.] Notwithstanding 
132.18  any provision of law to the contrary governing a covered 
132.19  retirement plan, a person who is the survivor of a deceased 
132.20  member of a covered retirement plan may receive a combined 
132.21  service survivor benefit from each covered retirement plan in 
132.22  which the deceased member had credit for at least one-half year 
132.23  of allowable service if the deceased member: 
132.24     (1) had credit for sufficient allowable service in any 
132.25  combination of covered retirement plans to meet any minimum 
132.26  allowable service credit requirement of the covered retirement 
132.27  fund for qualification for a survivor benefit or annuity; 
132.28     (2) had credit for at least one-half year of allowable 
132.29  service with the most recent covered retirement plan before the 
132.30  date of death and was an active member of that covered 
132.31  retirement plan on the date of death; and 
132.32     (3) was not receiving a retirement annuity from any covered 
132.33  retirement plan on the date of death. 
132.34     Subd. 3.  [COMBINED SERVICE SURVIVOR BENEFIT COMPUTATION.] 
132.35  (a) The combined service survivor annuity or survivor benefit 
132.36  from each covered retirement plan must be based on the allowable 
133.1   service in each covered retirement plan, except as provided by 
133.2   paragraphs (b) to (f). 
133.3      (b) The survivor annuity or survivor benefit must be 
133.4   governed by the law in effect for each covered retirement plan 
133.5   on the date of the death of the deceased member. 
133.6      (c) All plans must base the survivor annuity or survivor 
133.7   benefit on the same average salary figure if the annuity or 
133.8   benefit is salary related. 
133.9      (d) If the method of the covered retirement plan used to 
133.10  compute a survivor benefit or annuity varies based on the length 
133.11  of allowable service credit, the benefit accrual formula 
133.12  percentages used by the plan must recognize the allowable 
133.13  service credit in the plan as a continuation of any previous 
133.14  allowable service credit with other covered retirement plans. 
133.15     (e) If the covered retirement plan is a defined benefit or 
133.16  formula plan and the method used to compute a survivor benefit 
133.17  or annuity does not vary based on the length of allowable 
133.18  service credit, the portion of the specified benefit or annuity 
133.19  amount from the covered retirement plan must bear the same 
133.20  proportion to the total specified benefit or annuity amount as 
133.21  the allowable service credit in that plan bears to the total 
133.22  allowable service credit in all covered retirement plans.  If 
133.23  the covered retirement plan is a defined contribution or 
133.24  nonformula plan, the survivor benefit amount for allowable 
133.25  service under the plan is not affected, but the service and 
133.26  covered salary under the plan must be used in calculations by 
133.27  other covered retirement plans. 
133.28     (f) A period for which a ~~person has~~ deceased member had 
133.29  allowable service credit in more than one covered retirement 
133.30  plan must be used only once in determining the total allowable 
133.31  service credit for calculating the combined service survivor 
133.32  annuity or survivor benefit.  A period of duplicated service 
133.33  credit must be handled as provided in section 356.30, 
133.34  subdivision 1, ~~clause (3), items (i) and (j)~~ paragraphs (g) and 
133.35  (h). 
133.36     (g) If a person is entitled to a minimum benefit payable 
134.1   from a public pension plan named in section 356.30, subdivision 
134.2   3, the person may receive additional credit for only those years 
134.3   of service in another covered pension plan that, when added to 
134.4   the years of service in the pension plan that is paying the 
134.5   minimum benefit, exceed the years of service on which the 
134.6   minimum benefit is based. 
134.7      Subd. 4.  [COVERED RETIREMENT PLANS.] This section applies 
134.8   to the following retirement plans: 
134.9      (1) the legislators retirement plan, established by chapter 
134.10  3A; 
134.11     (2) the general state employees retirement ~~fund~~ plan of the 
134.12  Minnesota state retirement system, established by chapter 352; 
134.13     (3) the correctional state employees retirement plan of the 
134.14  Minnesota state retirement system, established by chapter 352; 
134.15     (4) the state patrol retirement ~~fund~~ plan, established by 
134.16  chapter 352B; 
134.17     (5) the elective state officers retirement plan, 
134.18  established by chapter 352C; 
134.19     (6) the unclassified state employees retirement ~~plan~~ 
134.20  program, established by chapter 352D; 
134.21     (7) the general employees retirement plan of the public 
134.22  employees retirement association, established by chapter 353; 
134.23     (8) the public employees police and fire ~~fund~~ plan of the 
134.24  public employees retirement association, established by chapter 
134.25  353; 
134.26     (9) ~~public employees~~ the local government correctional 
134.27  service retirement plan of the public employees retirement 
134.28  association, established by chapter 353E; 
134.29     (10) the teachers retirement association, established by 
134.30  chapter 354; 
134.31     (11) the Duluth teachers retirement fund association, 
134.32  established by chapter 354A; 
134.33     (12) the Minneapolis teachers retirement fund association, 
134.34  established by chapter 354A; 
134.35     (13) the St. Paul teachers retirement fund association, 
134.36  established by chapter 354A; 
135.1      (14) the Minneapolis employees retirement fund, established 
135.2   by chapter 422A; and 
135.3      (15) the judges' retirement fund, established by sections 
135.4   490.121 to 490.132. 
135.5                         RETIREMENT ANNUITIES 
135.6      Sec. 22.  [356.315] [RETIREMENT BENEFIT FORMULA 
135.7   PERCENTAGES.] 
135.8      Subdivision 1.  [COORDINATED PLAN MEMBERS.] The applicable 
135.9   benefit accrual rate is 1.2 percent. 
135.10     Subd. 2.  [COORDINATED PLAN MEMBERS.] The applicable 
135.11  benefit accrual rate is 1.7 percent. 
135.12     Subd. 2a.  [COORDINATED MEMBERS.] The applicable benefit 
135.13  accrual rate is 2.0 percent. 
135.14     Subd. 3.  [BASIC PLAN MEMBERS.] The applicable benefit 
135.15  accrual rate is 2.2 percent. 
135.16     Subd. 4.  [BASIC PLAN MEMBERS.] The applicable benefit 
135.17  accrual rate is 2.7 percent. 
135.18     Subd. 5.  [CORRECTIONAL PLAN MEMBERS.] The applicable 
135.19  benefit accrual rate is 2.4 percent. 
135.20     Subd. 5a.  [LOCAL GOVERNMENT CORRECTIONAL SERVICE PLAN.] 
135.21  The applicable benefit accrual rate is 1.9 percent.  
135.22     Subd. 6.  [STATE TROOPERS PLAN AND POLICE AND FIRE PLAN 
135.23  MEMBERS.] The applicable benefit accrual rate is 3.0 percent. 
135.24     Subd. 7.  [JUDGES PLAN.] The applicable benefit accrual 
135.25  rate is 2.7 percent. 
135.26     Subd. 8.  [JUDGES PLAN.] The applicable benefit accrual 
135.27  rate is 3.2 percent. 
135.28     Subd. 9.  [FUTURE BENEFIT ACCRUAL RATE INCREASES.] After 
135.29  January 2, 1998, benefit accrual rate increases under this 
135.30  section must apply only to allowable service or formula service 
135.31  rendered after the effective date of the benefit accrual rate 
135.32  increase. 
135.33     Sec. 23.  Minnesota Statutes 2000, section 356.32, is 
135.34  amended to read: 
135.35     356.32 [PROPORTIONATE ANNUITY AT AGE 65.] 
135.36     Subdivision 1.  [PROPORTIONATE RETIREMENT ANNUITY.] (a) 
136.1   Notwithstanding any provision to the contrary of the laws 
136.2   governing any of the retirement funds ~~referred to~~ enumerated in 
136.3   subdivision 2, any person who is an active member of any 
136.4   applicable fund, who has credit for at least one year but less 
136.5   than ten years of allowable service in one or more of 
136.6   the ~~applicable funds~~ covered plans, and who terminates active 
136.7   service ~~pursuant to~~ under a mandatory retirement law or policy 
136.8   or at age 65 or older, or at the normal retirement age if this 
136.9   age is not age 65, for any reason ~~shall be~~ is entitled upon 
136.10  making written application on the form prescribed by ~~executive~~ 
136.11  ~~director or executive secretary~~ the chief administrative officer 
136.12  of the ~~fund~~ plan to a proportionate retirement annuity from each 
136.13  ~~applicable fund~~ covered plan in which the person has allowable 
136.14  service credit.  
136.15     (b) The proportionate annuity ~~shall~~ must be calculated 
136.16  under the applicable laws governing annuities based upon 
136.17  allowable service credit at the time of retirement and the 
136.18  person's average salary for the highest five successive years of 
136.19  allowable service or the average salary for the entire period of 
136.20  allowable service if less than five years.  
136.21     (c) Nothing in this section ~~shall prevent~~ prevents the 
136.22  imposition of the appropriate early retirement reduction of an 
136.23  annuity which commences ~~prior to~~ before the normal retirement 
136.24  age. 
136.25     Subd. 2.  [COVERED ~~FUNDS~~ RETIREMENT PLANS.] The provisions 
136.26  of this section ~~shall~~ apply to the following retirement 
136.27  ~~funds~~ plans: 
136.28     (1) the general state employees retirement ~~fund~~ plan of the 
136.29  Minnesota state retirement system, established ~~pursuant to~~ under 
136.30  chapter 352; 
136.31     (2) the correctional state employees retirement ~~program~~ 
136.32  plan of the Minnesota state retirement system, established 
136.33  ~~pursuant to~~ under chapter 352; 
136.34     (3) the state patrol retirement ~~fund~~ plan, 
136.35  established ~~pursuant to~~ under chapter 352B; 
136.36     (4) the general employees retirement plan of the public 
137.1   employees retirement ~~fund~~ association, established ~~pursuant to~~ 
137.2   under chapter 353; 
137.3      (5) the public employees police and fire ~~fund~~ plan of the 
137.4   public employees retirement association, established ~~pursuant to~~ 
137.5   under chapter 353; 
137.6      (6) the teachers retirement association, established 
137.7   ~~pursuant to~~ under chapter 354; 
137.8      (7) the Minneapolis employees retirement fund, established 
137.9   ~~pursuant to~~ under chapter 422A; 
137.10     (8) the Duluth teachers retirement fund association, 
137.11  established ~~pursuant to~~ under chapter 354A; 
137.12     (9) the Minneapolis teachers retirement fund association, 
137.13  established ~~pursuant to~~ under chapter 354A; and 
137.14     (10) the St. Paul teachers retirement fund association, 
137.15  established ~~pursuant to~~ under chapter 354A.  
137.16     Sec. 24.  Minnesota Statutes 2000, section 356.40, is 
137.17  amended to read: 
137.18     356.40 [DATE FOR PAYMENT OF ANNUITIES AND BENEFITS.] 
137.19     (a) Notwithstanding any law to the contrary, all annuities 
137.20  and benefits payable on and after December 1, 1977 by a covered 
137.21  retirement fund, as defined in section 356.30, subdivision 3, 
137.22  ~~shall~~ must be paid in advance for each month during the first 
137.23  week of that month.  The bylaws of ~~municipal~~ local retirement 
137.24  funds ~~shall~~ must be amended accordingly.  
137.25     (b) In no event, however, ~~shall~~ may this section ~~authorize~~ 
137.26  ~~more than one payment in any one month where the law governing~~ 
137.27  ~~the applicable retirement fund as of June 30, 1977 already~~ 
137.28  ~~provides for the full payment or accrual of annuities and~~ 
137.29  ~~benefits in advance for each month or as of the first day of the~~ 
137.30  ~~month, nor shall it~~ authorize the payment of both a retirement 
137.31  annuity and a surviving spouse's benefit in one month where the 
137.32  law governing the applicable retirement fund provides for the 
137.33  payment of the retired member's retirement annuity to the 
137.34  surviving spouse for the month in which the retired member dies. 
137.35     Sec. 25.  [356.403] [NORMAL RETIREMENT AGE; SAVINGS 
137.36  CLAUSE.] 
138.1      The intent of the legislature in sections 352.01, 
138.2   subdivision 25; 353.01, subdivision 37; 354.05, subdivision 38; 
138.3   and 354A.011, subdivision 15a, is to create a normal retirement 
138.4   age for persons first covered by those sections after May 16, 
138.5   1989, that is the same as the retirement age in the federal 
138.6   Social Security law, including future amendments to that law.  
138.7   If a court determines that the legislature may not incorporate 
138.8   by reference the future changes in federal Social Security law, 
138.9   the legislature reserves the right to amend the appropriate 
138.10  sections to make the normal retirement age conform to the 
138.11  retirement age in the federal Social Security law.  No person 
138.12  first covered by any of those sections after May 16, 1989, has a 
138.13  right to a normal retirement age that is less than the 
138.14  retirement age in the federal Social Security law. 
138.15     Sec. 26.  [356.405] [COMBINED PAYMENT OF RETIREMENT 
138.16  ANNUITIES.] 
138.17     (a) The public employees retirement association and the 
138.18  Minnesota state retirement system are permitted to combine 
138.19  payments to retirees.  The total payment must be equal to the 
138.20  amount that is payable if payments were kept separate.  The 
138.21  retiree must agree, in writing, to have the payment combined. 
138.22     (b) Each plan must calculate the benefit amounts under the 
138.23  laws governing the plan and the required reserves and future 
138.24  mortality losses or gains must be paid or accrued to the plan 
138.25  from which the service was earned.  Each plan must account for 
138.26  its portion of the payment separately, and there may be no 
138.27  additional actuarial liabilities realized by either plan. 
138.28     (c) The plan making the payment would be responsible for 
138.29  issuing one payment and making address changes, tax withholding 
138.30  changes, and other administrative functions needed to process 
138.31  the payment. 
138.32                         SURVIVOR BENEFITS 
138.33     Sec. 27.  [356.406] [LOSS OF ENTITLEMENT TO BENEFITS FOR 
138.34  SURVIVOR CAUSING DEATH OF PENSION PLAN MEMBER.] 
138.35     Subdivision 1.  [DEFINITIONS.] (a) Each of the words or 
138.36  terms defined in this subdivision has the meaning indicated. 
139.1      (b) "Public pension plan" means any retirement plan or fund 
139.2   enumerated in section 356.20, subdivision 2, or 356.30, 
139.3   subdivision 3, any relief association governed by section 69.77 
139.4   or sections 69.771 to 69.775, any retirement plan governed by 
139.5   chapter 354B or 354C, the Hennepin county supplemental 
139.6   retirement plan governed by sections 383B.46 to 383B.52, or any 
139.7   housing and redevelopment authority retirement plan. 
139.8      (c) "Public pension plan member" means a person who is a 
139.9   participant covered by a public pension plan; a former 
139.10  participant of a public pension plan who has sufficient service 
139.11  to be entitled to receive a future retirement annuity or service 
139.12  pension; a recipient of a retirement annuity, service pension, 
139.13  or disability benefit from a public pension plan; or a former 
139.14  participant of a public pension plan who has member or employee 
139.15  contributions to the person's credit in the public pension plan. 
139.16     (d) "Survivor" means the surviving spouse, a former spouse, 
139.17  a surviving child, a joint annuitant, a designated recipient of 
139.18  a second or remainder portion of an optional annuity form, a 
139.19  beneficiary, or the estate of a deceased public pension plan 
139.20  member, as those terms are commonly understood or defined in the 
139.21  benefit plan document of the public pension plan. 
139.22     (e) "Survivor benefit" means a surviving spouse benefit, 
139.23  surviving child benefit, second or remainder portion of an 
139.24  optional annuity form, a death benefit, a funeral benefit, or a 
139.25  refund of member or employee contributions payable on account of 
139.26  the death of a public pension plan member as provided for in the 
139.27  benefit plan document of the public pension plan. 
139.28     Subd. 2.  [SUSPENSION OF SURVIVOR BENEFITS UPON FELONY 
139.29  CHARGE.] During the pendency of a charge of a survivor of a 
139.30  felony that caused the death of a public pension plan member, of 
139.31  criminal liability for a death by wrongful act felony, or of 
139.32  conspiracy to commit a death by wrongful act felony, the 
139.33  entitlement of that survivor to receive a survivor benefit is 
139.34  suspended. 
139.35     Subd. 3.  [FORFEITURE OF SURVIVOR BENEFITS UPON FELONY 
139.36  CONVICTION.] On final conviction of a survivor of a felony that 
140.1   caused the death of a public pension plan member, of criminal 
140.2   liability for a death by wrongful act felony, or of conspiracy 
140.3   to commit a death by wrongful act felony, the entitlement of 
140.4   that survivor to receive a survivor benefit is forfeited, 
140.5   including entitlement for any previously suspended survivor 
140.6   benefits under subdivision 2. 
140.7      Subd. 4.  [SUSPENSION OR FORFEITURE ACTIONS SEPARATE.] The 
140.8   charge of one survivor under subdivision 2 or the conviction of 
140.9   one survivor under subdivision 3 does not affect the entitlement 
140.10  of another survivor to a survivor benefit. 
140.11     Subd. 5.  [RECOVERY OF CERTAIN BENEFITS.] If monthly 
140.12  benefits or a refund of the balance of a participant or former 
140.13  participant's account have already been paid to an individual 
140.14  who is later charged or convicted as described under this 
140.15  section, the executive director or chief administrative officer 
140.16  of the public pension plan shall attempt to recover the amounts 
140.17  paid.  Payment may be made to the next beneficiary or survivor 
140.18  only in an amount equal to the amount recovered and in the 
140.19  amount of any future payments that would legally accrue to 
140.20  another survivor under the applicable laws of the retirement 
140.21  plan. 
140.22     Subd. 6.  [DISPOSITION OF FORFEITED SURVIVOR BENEFITS.] If 
140.23  the benefit plan document governing the public pension plan does 
140.24  not provide for the disposition of forfeited benefits, survivor 
140.25  benefits forfeited under this section must be deposited in the 
140.26  general fund of the state. 
140.27     Sec. 28.  [356.407] [RESTORATION OF SURVIVOR BENEFITS.] 
140.28     Subdivision 1.  [RESTORATION UPON TERMINATION OF 
140.29  REMARRIAGE.] Notwithstanding any provision to the contrary of 
140.30  the laws governing any of the retirement plans enumerated in 
140.31  subdivision 2, any person who was receiving a surviving spouse's 
140.32  benefit from any of those plans and whose benefit terminated 
140.33  solely because of remarriage is, if the remarriage terminates 
140.34  for any reason, again entitled upon reapplication to a surviving 
140.35  spouse's benefit; provided, however, that the person is not 
140.36  entitled to retroactive payments for the period of remarriage.  
141.1   The benefit resumes at the level which the person would have 
141.2   been receiving if there had been no remarriage.  This section 
141.3   applies prospectively to any person who first becomes entitled 
141.4   to receive a surviving spouse's benefit on or after May 18, 
141.5   1975, and also applies retroactively to any person who first 
141.6   became entitled to receive a surviving spouse's benefit before 
141.7   May 18, 1975; provided, however, that no person is entitled to 
141.8   retroactive payments for any period of time before May 18, 1975. 
141.9      Subd. 2.  [COVERED FUNDS.] The provisions of this section 
141.10  apply to the following retirement funds: 
141.11     (1) the general employees retirement plan of the public 
141.12  employees retirement association established under chapter 353; 
141.13     (2) the public employees police and fire plan of the public 
141.14  employees retirement association established under chapter 353; 
141.15     (3) the state patrol retirement plan established under 
141.16  chapter 352B; 
141.17     (4) the legislators retirement plan established under 
141.18  chapter 3A; 
141.19     (5) the elective state officers retirement plan established 
141.20  under chapter 352C; 
141.21     (6) the teachers retirement association established under 
141.22  chapter 354; and 
141.23     (7) the Minneapolis employees retirement fund established 
141.24  under chapter 422A.  
141.25                      POSTRETIREMENT INCREASES 
141.26     Sec. 29.  Minnesota Statutes 2000, section 356.41, is 
141.27  amended to read: 
141.28     356.41 [BENEFIT ADJUSTMENTS FOR CERTAIN DISABILITY AND 
141.29  SURVIVOR BENEFITS.] 
141.30     Disability benefits payable to a disabilitant, if not 
141.31  otherwise included in the participation in the Minnesota 
141.32  postretirement investment fund, and survivor benefits payable to 
141.33  a survivor from any public pension ~~fund~~ plan which participates 
141.34  in the Minnesota postretirement investment fund ~~shall~~ must be 
141.35  adjusted in the same manner, at the same times and in the same 
141.36  amounts as are benefits payable from the Minnesota 
142.1   postretirement investment fund to eligible benefit recipients of 
142.2   that public pension ~~fund~~ plan.  If a disability benefit is not 
142.3   included in the participation in the Minnesota postretirement 
142.4   investment fund, the disability benefit is recomputed as a 
142.5   retirement annuity and the recipient would have been eligible 
142.6   for an adjustment ~~pursuant to~~ under this section if the 
142.7   disability benefit was not recomputed, the recipient ~~will~~ 
142.8   ~~continue to be~~ remains eligible for the adjustment ~~pursuant to~~ 
142.9   under this section after the recomputation.  For the survivor of 
142.10  a deceased annuitant who receives a survivor benefit 
142.11  calculated ~~pursuant to~~ under a prior law rather than the second 
142.12  portion of a joint and survivor annuity, any period of receipt 
142.13  of a retirement annuity by the annuitant ~~shall~~ must be utilized 
142.14  in determining the period of receipt for eligibility to receive 
142.15  an adjustment ~~pursuant to~~ under this section.  No recipient 
142.16  ~~shall~~, however, ~~be~~ is entitled to more than one adjustment 
142.17  ~~pursuant to~~ under this section or section 11A.18 applicable to 
142.18  one benefit at one time by reason of this section.  
142.19     Sec. 30.  [356.42] [POSTRETIREMENT ADJUSTMENT; LUMP SUM 
142.20  PAYMENTS.] 
142.21     Subdivision 1.  [ENTITLEMENT.] A person who is receiving a 
142.22  retirement annuity, a disability benefit, or a surviving 
142.23  spouse's annuity or benefit from a retirement fund specified in 
142.24  subdivision 3, clauses (1) to (8), is entitled to receive a 
142.25  postretirement adjustment from the applicable retirement fund in 
142.26  the amount specified in subdivision 2, if the annuity or benefit 
142.27  was computed under: 
142.28     (1) the laws in effect before June 1, 1973, if the person 
142.29  is receiving an annuity or benefit from the retirement fund 
142.30  specified in subdivision 3, clause (4); 
142.31     (2) the laws in effect before July 1, 1973, if the person 
142.32  is receiving an annuity or benefit from a retirement fund 
142.33  specified in subdivision 3, clause (1), (2), (3), or (5); 
142.34     (3) the metropolitan transit commission transit operating 
142.35  division employees retirement fund plan document in effect on or 
142.36  before December 31, 1977, if the person is receiving a 
143.1   retirement annuity, a disability benefit, or a surviving 
143.2   spouse's annuity or benefit from the retirement fund specified 
143.3   in subdivision 3, clause (5); 
143.4      (4) the laws in effect before May 1, 1974, and before any 
143.5   adjustment under Laws 1987, chapter 372, article 3, if the 
143.6   person is receiving an annuity or benefit from the retirement 
143.7   fund specified in subdivision 3, clause (6); 
143.8      (5) the laws in effect before January 1, 1970, if the 
143.9   person is receiving an annuity or benefit from the retirement 
143.10  fund specified in subdivision 3, clause (7); or 
143.11     (6) the laws in effect before June 30, 1971, if the person 
143.12  is receiving an annuity or benefit from the retirement fund 
143.13  specified in subdivision 3, clause (8). 
143.14     Subd. 2.  [AMOUNT OF POSTRETIREMENT ADJUSTMENT; PAYMENT.] 
143.15  (a) For any person receiving an annuity or benefit on November 
143.16  30, 1989, and entitled to receive a postretirement adjustment 
143.17  under subdivision 1, the postretirement adjustment is a lump-sum 
143.18  payment calculated under paragraph (b) or (c). 
143.19     (b) For coordinated plan annuity or benefit recipients, the 
143.20  postretirement adjustment in 1989 is $25 for each full year of 
143.21  allowable service credited to the person by the respective 
143.22  retirement fund.  In 1990 and each following year, the 
143.23  postretirement adjustment is the amount payable in the preceding 
143.24  year increased by the same percentage applied to regular 
143.25  annuities paid from the postretirement fund or, for the 
143.26  retirement funds specified in subdivision 3, clauses (6), (7), 
143.27  and (8), by the same percentage applied under the articles of 
143.28  incorporation and bylaws of these funds. 
143.29     (c) For basic plan annuity or benefit recipients, the 
143.30  postretirement adjustment in 1989 is the greater of: 
143.31     (1) $25 for each full year of allowable service credited to 
143.32  the person by the respective retirement fund; or 
143.33     (2) the difference between: 
143.34     (i) the product of $400 times the number of full years of 
143.35  allowable service credited to the person by the respective 
143.36  retirement fund; and 
144.1      (ii) the sum of the benefits payable to the person from any 
144.2   Minnesota public employee pension plan, and cash benefits 
144.3   payable to the person from the Social Security Administration. 
144.4      In 1990 and each following year, each eligible basic plan 
144.5   annuity or benefit recipient shall receive the amount received 
144.6   in the preceding year increased by the same percentage applied 
144.7   to regular annuities paid from the postretirement fund or, for 
144.8   the retirement funds specified in subdivision 3, clauses (6), 
144.9   (7), and (8), by the same percentage applied under the articles 
144.10  of incorporation and bylaws of these funds. 
144.11     (d) The postretirement adjustment provided for in this 
144.12  section must be paid on December 1 to those persons receiving an 
144.13  annuity or benefit on the preceding November 30.  This section 
144.14  does not authorize the payment of a postretirement adjustment to 
144.15  an estate if the annuity or benefit recipient dies before the 
144.16  November 30 eligibility date.  The postretirement adjustment 
144.17  provided for in this section must be paid automatically unless 
144.18  the intended recipient files a written notice with the 
144.19  retirement fund requesting that the postretirement adjustment 
144.20  not be paid or returns the amount of adjustment to the 
144.21  retirement fund.  Written notice of the waiver of the 
144.22  postretirement adjustment is irrevocable for the year during 
144.23  which it was made. 
144.24     Subd. 3.  [COVERED RETIREMENT PLANS.] The postretirement 
144.25  adjustment provided in this section applies to the following 
144.26  retirement funds: 
144.27     (1) the general employees retirement plans of the public 
144.28  employees retirement association; 
144.29     (2) the public employees police and fire plan of the public 
144.30  employees retirement association; 
144.31     (3) the teachers retirement association; 
144.32     (4) the state patrol retirement plan; 
144.33     (5) the state employees retirement plan of the Minnesota 
144.34  state retirement system; 
144.35     (6) the Minneapolis teachers retirement fund association 
144.36  established under chapter 354A; 
145.1      (7) the St. Paul teachers retirement fund association 
145.2   established under chapter 354A; and 
145.3      (8) the Duluth teachers retirement fund association 
145.4   established under chapter 354A. 
145.5      Sec. 31.  [356.43] [SUPPLEMENTAL BENEFIT; LUMP-SUM 
145.6   PAYMENTS; MINNEAPOLIS EMPLOYEES RETIREMENT FUND.] 
145.7      Subdivision 1.  [ENTITLEMENT.] Any person who is receiving 
145.8   either an annuity that was computed under the laws in effect 
145.9   before March 5, 1974, or a "$2 bill and annuity" annuity from 
145.10  the Minneapolis employees retirement fund is entitled to receive 
145.11  a supplemental benefit lump-sum payment from the retirement fund 
145.12  in the amount specified in subdivision 2.  
145.13     Subd. 2.  [AMOUNT OF PAYMENT.] (a) For any person receiving 
145.14  an annuity or benefit on November 30, 1991, and entitled to 
145.15  receive a supplemental benefit lump-sum payment under 
145.16  subdivision 1, the payment is $28 for each full year of 
145.17  allowable service credited to the person by the retirement fund. 
145.18     In 1992 and each following year, each eligible benefit 
145.19  recipient is entitled to receive the amount received in the 
145.20  preceding year increased by the same percentage applied on the 
145.21  most recent January 1 to regular annuities paid from the 
145.22  Minneapolis employees retirement fund. 
145.23     (b) The payment provided for in this section is payable on 
145.24  December 1, 1991, to those persons receiving an annuity or 
145.25  benefit on November 30, 1991.  In subsequent years, the payment 
145.26  must be made on December 1 to those persons receiving an annuity 
145.27  or benefit on the preceding November 30.  This section does not 
145.28  authorize payment to an estate if the annuity or benefit 
145.29  recipient dies before the November 30 eligibility date.  The 
145.30  payment provided for in this section must be paid automatically 
145.31  unless the intended recipient files a written notice with the 
145.32  retirement fund requesting that it not be paid. 
145.33     Subd. 3.  [STATE APPROPRIATION.] Payments under this 
145.34  section are the responsibility of the Minneapolis employees 
145.35  retirement fund.  A separate state aid is provided toward the 
145.36  level dollar amortized cost of the payments.  For state fiscal 
146.1   years 1992 to 2001 inclusive, there is appropriated annually 
146.2   $550,000 from the general fund to the commissioner of finance to 
146.3   be added, in quarterly installments, to the annual state 
146.4   contribution amount determined under section 422A.101, 
146.5   subdivision 3.  After fiscal year 2001, any difference between 
146.6   the cumulative benefit amounts actually paid under this section 
146.7   after fiscal year 1991 and the amounts paid to the retirement 
146.8   fund by the state under this subdivision, plus investment 
146.9   earnings on the aid, shall be included by the retirement fund 
146.10  board and the actuary retained by the legislative commission on 
146.11  pensions and retirement in determining the financial 
146.12  requirements of the fund and contributions under section 
146.13  422A.101. 
146.14     Sec. 32.  [356.431] [CONVERSION OF LUMP-SUM POSTRETIREMENT 
146.15  AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.] 
146.16     Subdivision 1.  [LUMP-SUM POSTRETIREMENT PAYMENT 
146.17  CONVERSION.] For benefits paid after December 31, 2001, to 
146.18  eligible persons under sections 356.42 and 356.43, the amount of 
146.19  the most recent lump-sum benefit payable to an eligible 
146.20  recipient under sections 356.86 and 356.865 must be divided by 
146.21  12.  The result must be added to the monthly annuity or benefit 
146.22  otherwise payable to an eligible recipient, must become a 
146.23  permanent part of the benefit recipient's pension, and must be 
146.24  included in any pension benefit subject to future increases. 
146.25     Subd. 2.  [TRANSFER OF REQUIRED RESERVES TO MINNESOTA 
146.26  POSTRETIREMENT INVESTMENT FUND.] Public employee retirement 
146.27  funds participating in the state board of investment 
146.28  postretirement investment fund shall transfer the required 
146.29  reserves for the postretirement conversion under subdivision 1 
146.30  to the postretirement investment fund by January 31, 2002. 
146.31                              REFUNDS 
146.32     Sec. 33.  [356.44] [PARTIAL PAYMENT OF PENSION PLAN 
146.33  REFUND.] 
146.34     (a) Notwithstanding any provision of law to the contrary, a 
146.35  member of a pension plan listed in section 356.30, subdivision 
146.36  3, with at least two years of forfeited service taken from a 
147.1   single pension plan, may repay a portion of all refunds.  A 
147.2   partial refund repayment must comply with this section. 
147.3      (b) The minimum portion of a refund repayment is one-third 
147.4   of the total service credit period of all refunds taken from a 
147.5   single plan.  
147.6      (c) The cost of the partial refund repayment is the product 
147.7   of the cost of the total repayment multiplied by the ratio of 
147.8   the restored service credit to the total forfeited service 
147.9   credit.  The total repayment amount includes interest at the 
147.10  annual rate of 8.5 percent, compounded annually, from the refund 
147.11  date to the date repayment is received.  
147.12     (d) The restored service credit must be allocated based on 
147.13  the relationship the restored service bears to the total service 
147.14  credit period for all refunds taken from a single pension plan. 
147.15     (e) This section does not authorize a public pension plan 
147.16  member to repay a refund if the law governing the plan does not 
147.17  authorize the repayment of a refund of member contributions. 
147.18     Sec. 34.  [356.441] [REPAYMENT OF REFUNDS.] 
147.19     Repayment of a refund and interest on that refund permitted 
147.20  under laws governing any public pension plan in Minnesota may be 
147.21  made with funds distributed from a plan qualified under the 
147.22  federal Internal Revenue Code of 1986, section 401(a), as 
147.23  amended through December 31, 1988, or an annuity qualified under 
147.24  the federal Internal Revenue Code of 1986, section 403(a).  
147.25  Repayment may also be made with funds distributed from an 
147.26  individual retirement account used solely to receive a 
147.27  nontaxable rollover from that type of a plan or annuity.  The 
147.28  repaid refund must be separately accounted for as member 
147.29  contributions not previously taxed.  Before accepting any 
147.30  transfers to which this section applies, the executive director 
147.31  must require the member to provide written documentation to 
147.32  demonstrate that the amounts to be transferred are eligible for 
147.33  a tax-free rollover and qualify for that treatment under the 
147.34  federal Internal Revenue Code of 1986.  
147.35                       OPTIONAL ANNUITY FORMS
147.36     Sec. 35.  [356.46] [APPLICATION FOR RETIREMENT ANNUITY; 
148.1   PROCEDURE FOR ELECTING ANNUITY FORM.] 
148.2      Subdivision 1.  [DEFINITIONS.] As used in this section, 
148.3   each of the following terms shall have the meaning given. 
148.4      (a) "Annuity form" means the payment procedure and duration 
148.5   of a retirement annuity or disability benefit available to a 
148.6   member of a public pension fund, based on the period over which 
148.7   a retirement annuity or disability benefit is payable, 
148.8   determined by the number of persons to whom the retirement 
148.9   annuity or disability benefit is payable, and the amount of the 
148.10  retirement annuity or disability benefit which is payable to 
148.11  each person. 
148.12     (b) "Joint and survivor optional annuity" means an optional 
148.13  annuity form which provides a retirement annuity or disability 
148.14  benefit to a retired member and the spouse of the member on a 
148.15  joint basis during the lifetime of the retired member and all or 
148.16  a portion of the original retirement annuity or disability 
148.17  benefit amount to the surviving spouse in the event of the death 
148.18  of the retired member. 
148.19     (c) "Optional annuity form" means an annuity form which is 
148.20  elected by a member and is not provided automatically as the 
148.21  standard annuity form of the public pension plan. 
148.22     (d) "Public pension plan" means a public pension plan as 
148.23  defined under section 356.615, paragraph (b). 
148.24     (e) "Retirement annuity" means a series of monthly payments 
148.25  to which a former or retired member of a public pension fund is 
148.26  entitled due to attaining a specified age and acquiring credit 
148.27  for a specified period of service, which includes a retirement 
148.28  annuity, retirement allowance, or service pension.  
148.29     (f) "Disability benefit" means a series of monthly payments 
148.30  to which a former or disabled member of a public pension fund is 
148.31  entitled due to a physical or mental inability to engage in 
148.32  specified employment. 
148.33     Subd. 2.  [PROVISION OF INFORMATION ON ANNUITY FORMS.] 
148.34  Every public pension plan which provides for an annuity form 
148.35  other than a single life retirement annuity as an option which 
148.36  can be elected by an active, disabled, or retiring member shall 
149.1   provide as a part of, or accompanying the annuity application 
149.2   form, a written statement summarizing the optional annuity forms 
149.3   which are available, a general indication of the consequences of 
149.4   selecting one annuity form over another, a calculation of the 
149.5   actuarial reduction in the amount of the retirement annuity 
149.6   which would be required for each optional annuity form, and the 
149.7   procedure to be followed to obtain more information from the 
149.8   public pension fund concerning the optional annuity forms 
149.9   provided by the plan. 
149.10     Subd. 3.  [REQUIREMENT OF NOTICE TO MEMBER'S SPOUSE.] (a) 
149.11  If a public pension plan provides optional retirement annuity 
149.12  forms which include a joint and survivor optional retirement 
149.13  annuity form potentially applicable to the surviving spouse of a 
149.14  member, the executive director of the public pension plan shall 
149.15  send a copy of the written statement required by subdivision 2 
149.16  to the spouse of the member before the member's election of an 
149.17  optional retirement annuity.  
149.18     (b) Following the election of a retirement annuity by the 
149.19  member, a copy of the completed retirement annuity application 
149.20  and retirement annuity beneficiary form, if applicable, must be 
149.21  sent by the public pension plan to the spouse of the retiring 
149.22  member.  A signed acknowledgment must be required from the 
149.23  spouse confirming receipt of a copy of the completed retirement 
149.24  annuity application and retirement annuity beneficiary form, 
149.25  unless the spouse's signature confirming the receipt is on the 
149.26  annuity application form.  If the required signed acknowledgment 
149.27  is not received from the spouse within 30 days, the public 
149.28  pension plan must send another copy of the completed retirement 
149.29  annuity application and retirement annuity beneficiary form, if 
149.30  applicable, to the spouse by certified mail with restricted 
149.31  delivery. 
149.32     Sec. 36.  [356.465] [SUPPLEMENTAL NEEDS TRUST AS OPTIONAL 
149.33  ANNUITY FORM RECIPIENT.] 
149.34     Subdivision 1.  [INCLUSION AS RECIPIENT.] Notwithstanding 
149.35  any provision to the contrary of the laws, articles of 
149.36  incorporation, or bylaws governing a covered retirement plan 
150.1   specified in subdivision 3, a retiring member may designate a 
150.2   qualified supplemental needs trust under subdivision 2 as the 
150.3   remainder recipient on an optional retirement annuity form for a 
150.4   period not to exceed the lifetime of the beneficiary of the 
150.5   supplemental needs trust. 
150.6      Subd. 2.  [DEFINITION OF QUALIFIED SUPPLEMENTAL NEEDS 
150.7   TRUST.] A qualified supplemental needs trust is a trust that: 
150.8      (1) was established on or after July 1, 1992; 
150.9      (2) was established solely for the benefit of one person 
150.10  who has a disability under federal Social Security 
150.11  Administration supplemental security income or retirement, 
150.12  survivors, and disability insurance disability determination 
150.13  standards and who was determined as such before the creation of 
150.14  the trust; 
150.15     (3) is funded, in whole or in part, by the primary 
150.16  recipient of the optional annuity form and, unless the trust is 
150.17  a Zebley trust, is not funded by the beneficiary, the 
150.18  beneficiary's spouse, or a person who is required to pay a sum 
150.19  to or for the trust beneficiary under the terms of litigation or 
150.20  a litigation settlement; 
150.21     (4) is established to cover reasonable living expenses and 
150.22  other basic needs of the disabilitant, in whole or in part, in 
150.23  instances when public assistance does not provide sufficiently 
150.24  for these needs; 
150.25     (5) is not permitted to make disbursement to replace or 
150.26  reduce public assistance otherwise available; 
150.27     (6) is irrevocable; 
150.28     (7) terminates upon the death of the disabled person for 
150.29  whose benefit it was established; and 
150.30     (8) is determined by the executive director to be a trust 
150.31  that contains excluded assets for purposes of the qualification 
150.32  for public entitlement benefits under the applicable federal and 
150.33  state laws and regulations. 
150.34     Subd. 3.  [COVERED RETIREMENT PLANS.] The provisions of 
150.35  this section apply to the following retirement plans: 
150.36     (1) the general state employees retirement plan of the 
151.1   Minnesota state retirement system established under chapter 352; 
151.2      (2) the correctional state employees retirement plan of the 
151.3   Minnesota state retirement system established under chapter 352; 
151.4      (3) the state patrol retirement plan established under 
151.5   chapter 352B; 
151.6      (4) the legislators retirement plan established under 
151.7   chapter 3A; 
151.8      (5) the judges retirement plan established under chapter 
151.9   490; 
151.10     (6) the general employees retirement plan of the public 
151.11  employees retirement association established under chapter 353; 
151.12     (7) the public employees police and fire plan of the public 
151.13  employees retirement association established under chapter 353; 
151.14     (8) the teachers retirement plan established under chapter 
151.15  354; 
151.16     (9) the Duluth teachers retirement fund association 
151.17  established under chapter 354A; 
151.18     (10) the St. Paul teachers retirement fund association 
151.19  established under chapter 354A; 
151.20     (11) the Minneapolis teachers retirement fund association 
151.21  established under chapter 354A; 
151.22     (12) the Minneapolis employees retirement plan established 
151.23  under chapter 422A; 
151.24     (13) the Minneapolis firefighters relief association 
151.25  established under chapter 423C; 
151.26     (14) the Minneapolis police relief association established 
151.27  under chapter 423B; and 
151.28     (15) the local government correctional service retirement 
151.29  plan of the public employees retirement association established 
151.30  under chapter 353E. 
151.31             REEMPLOYED ANNUITANT EARNINGS DISPOSITION 
151.32     Sec. 37.  [356.47] [DISPOSITION OF AMOUNT IN EXCESS OF 
151.33  REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.] 
151.34     Subdivision 1.  [APPLICATION.] This section applies to the 
151.35  balance of annual retirement annuities on the amount of 
151.36  retirement annuity reductions after reemployed annuitant 
152.1   earnings limitations for retirement plans governed by section 
152.2   352.115, subdivision 10; 353.37; 354.44, subdivision 5; or 
152.3   354A.31, subdivision 3. 
152.4      Subd. 2.  [RECORDKEEPING; REPORTING.] The chief 
152.5   administrative officer of each retirement plan shall keep 
152.6   records for each reemployed annuitant of the amount of the 
152.7   annuity reduction.  This amount must be reported to each member 
152.8   at least once each year. 
152.9      Subd. 3.  [PAYMENT.] (a) Upon the retired member attaining 
152.10  the age of 65 years or upon the first day of the month next 
152.11  following the month occurring one year after the termination of 
152.12  the reemployment that gave rise to the limitation, whichever is 
152.13  later, and the filing of a written application, the retired 
152.14  member is entitled to the payment, in a lump sum, of the value 
152.15  of the person's amount under subdivision 2, plus interest at the 
152.16  compound annual rate of six percent from the date that the 
152.17  amount was deducted from the retirement annuity to the date of 
152.18  payment. 
152.19     (b) The written application must be on a form prescribed by 
152.20  the chief administrative officer of the applicable retirement 
152.21  plan. 
152.22     (c) If the retired member dies before the payment provided 
152.23  for in paragraph (a) is made, the amount is payable, upon 
152.24  written application, to the deceased person's surviving spouse, 
152.25  or if none, to the deceased person's designated beneficiary, or 
152.26  if none, to the deceased person's estate. 
152.27                  MARRIAGE DISSOLUTION RETIREMENT 
152.28                        COVERAGE INFORMATION 
152.29     Sec. 38.  [356.49] [PROVISION OF INFORMATION IN THE EVENT 
152.30  OF MARRIAGE DISSOLUTION.] 
152.31     Subdivision 1.  [INFORMATION FOR A PENDING MARRIAGE 
152.32  DISSOLUTION.] (a) Upon receipt of a written request by a person 
152.33  with access to the data under subdivision 3 who cites this 
152.34  statute, a public or private pension plan administrator must 
152.35  provide the court and the parties to a marriage dissolution 
152.36  action involving a plan member or former plan member with 
153.1   information regarding pension benefits or rights of the plan 
153.2   member or former plan member.  The pension plan shall provide 
153.3   this information upon the request of the court or a party to the 
153.4   action without requiring a signed authorization from the plan 
153.5   member or former plan member. 
153.6      (b) The information must include the pension benefits or 
153.7   rights of the plan member or former plan member as of the first 
153.8   day of the month following the date of the request, or as of the 
153.9   end of the previous fiscal year for the plan, and as of the date 
153.10  of valuation of marital assets under section 518.58, if the 
153.11  person requesting the information specifies that date.  The 
153.12  information must include the accrued service credit of the 
153.13  person, the credited salary of the person for the most current 
153.14  five-year period, a summary of the benefit plan, and any other 
153.15  information relevant to the calculation of the present value of 
153.16  the benefits or rights. 
153.17     Subd. 2.  [INFORMATION FOR AN EXISTING DISSOLUTION DECREE.] 
153.18  If a marriage dissolution decree rendered by a court of 
153.19  competent jurisdiction prior to August 1, 1987, provided a 
153.20  procedure for the distribution of future pension plan payments, 
153.21  upon request the applicable pension plan administrator shall 
153.22  provide on a timely basis to the court and the parties to the 
153.23  action, the required information to implement that procedure 
153.24  without requiring a signed authorization from the plan member or 
153.25  former plan member. 
153.26     Subd. 3.  [ACCESS TO DATA.] Notwithstanding any provision 
153.27  of chapter 13 to the contrary, an administrator may release 
153.28  private or confidential data on individuals to the court, the 
153.29  parties to a marriage dissolution, their attorneys, and an 
153.30  actuary appointed under section 518.582, to the extent necessary 
153.31  to comply with this section, but only if the administrator has 
153.32  received a copy of the legal petition showing that an action for 
153.33  marriage dissolution has commenced and a copy of the affidavit 
153.34  of service showing that the petition has been served on the 
153.35  responding party to the action. 
153.36                   SERVICE AND SALARY CREDIT UPON 
154.1                          WRONGFUL DISCHARGE 
154.2      Sec. 39.  Minnesota Statutes 2000, section 356.50, is 
154.3   amended to read: 
154.4      356.50 [SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN 
154.5   THE EVENT OF WRONGFUL DISCHARGE.] 
154.6      (a) A person who is wrongfully discharged from public 
154.7   employment that gave rise to coverage by a public employee 
154.8   pension plan ~~listed~~ enumerated in section 356.30, subdivision 3, 
154.9   is entitled to obtain allowable service credit from the 
154.10  applicable public employee pension plan for the applicable 
154.11  period caused by the wrongful discharge.  
154.12     (b) A person is wrongfully discharged for purposes of this 
154.13  section if: 
154.14     (1) the person has been determined by a court of competent 
154.15  jurisdiction or by an arbitrator in binding arbitration, 
154.16  whichever applies, to have been wrongfully discharged from 
154.17  public employment; 
154.18     (2) the person received an award of back pay with respect 
154.19  to that discharge; and 
154.20     (3) the award does not include any amount for any lost or 
154.21  interrupted public pension plan coverage. 
154.22     ~~(b)~~ (c) To obtain the public pension plan allowable service 
154.23  credit, the person shall pay the required member contribution 
154.24  amount.  The required member contribution amount is the member 
154.25  contribution rate or rates in effect for the pension plan during 
154.26  the period of service covered by the back pay award, applied to 
154.27  the unpaid gross salary amounts of the back pay award including 
154.28  reemployment insurance, workers' compensation or wages from 
154.29  other sources which reduced the back award.  No contributions 
154.30  shall be made under this clause for compensation covered by a 
154.31  public pension plan listed in section 356.30, subdivision 3, for 
154.32  employment during the removal period.  The person shall pay the 
154.33  required member contribution amount within 60 days of the date 
154.34  of receipt of the back pay award, within 60 days of April 14, 
154.35  1992, or within 60 days of a billing from the retirement fund, 
154.36  whichever is later. 
155.1      ~~(c)~~ (d) The public employer who wrongfully discharged the 
155.2   public employee must pay an employer contribution on the back 
155.3   pay award.  The employer contribution must be based on the 
155.4   employer contribution rate or rates in effect for the pension 
155.5   plan during the period of service covered by the back pay award, 
155.6   applied to the salary amount on which the member contribution 
155.7   amount was determined under paragraph ~~(b)~~ (c).  Interest on both 
155.8   the required member and employer contribution amount must be 
155.9   paid by the employer at the annual compound rate of 8.5 percent 
155.10  per year, expressed monthly, between the date the contribution 
155.11  amount would have been paid to the date of actual payment.  The 
155.12  employer payment must be made within 30 days of the payment 
155.13  under paragraph ~~(b)~~ (c). 
155.14     Sec. 40.  Minnesota Statutes 2000, section 356.55, as 
155.15  amended by Laws 2001, First Special Session chapter 10, article 
155.16  6, section 16, is amended to read: 
155.17     356.55 [PRIOR SERVICE CREDIT PURCHASE PAYMENT AMOUNT 
155.18  DETERMINATION PROCEDURE.] 
155.19     Subdivision 1.  [APPLICATION.] (a) Unless the prior service 
155.20  credit purchase authorization special law or general statute 
155.21  provision explicitly specifies a different purchase payment 
155.22  amount determination procedure, this section governs the 
155.23  determination of the prior service credit purchase payment 
155.24  amount of any prior service credit purchase.  
155.25     (b) The purchase payment amount determination procedure 
155.26  must recognize any service credit accrued to the purchaser in a 
155.27  pension plan ~~listed~~ enumerated in section 356.30, subdivision 3. 
155.28     (c) Any service credit in a Minnesota defined benefit 
155.29  public employee pension plan available to be reinstated by the 
155.30  purchaser through the repayment of a refund of member or 
155.31  employee contributions previously received must be repaid in 
155.32  full before any purchase of prior service credit payment is made 
155.33  under this section. 
155.34     Subd. 2.  [DETERMINATION.] (a) Unless the prior service 
155.35  credit purchase minimum purchase payment amount determined under 
155.36  paragraph (d) is greater, the prior service credit purchase 
156.1   amount is the result obtained by subtracting the amount 
156.2   determined under paragraph (c) from the amount determined under 
156.3   paragraph (b). 
156.4      (b) The present value of the unreduced single life 
156.5   retirement annuity, with the purchase of the additional service 
156.6   credit included, must be calculated as follows: 
156.7      (1) the age at first eligibility for an unreduced single 
156.8   life retirement annuity, including the purchase of the 
156.9   additional service credit, must be determined; 
156.10     (2) the length of total service credit, including the 
156.11  period of the purchase of the additional service credit, at the 
156.12  age determined under clause (1) must be determined; 
156.13     (3) the highest five successive years average salary at the 
156.14  age determined under clause (1), assuming five percent annual 
156.15  compounding salary increases from the most current annual salary 
156.16  amount at the age determined under clause (1), must be 
156.17  determined; 
156.18     (4) using the benefit accrual rate or rates applicable to 
156.19  the prospective purchaser of the service credit based on the 
156.20  prospective purchaser's actual date of entry into covered 
156.21  service, the length of service determined under clause (2), and 
156.22  the final average salary determined under clause (3), the annual 
156.23  unreduced single life retirement annuity amount must be 
156.24  determined; 
156.25     (5) the actuarial present value of the projected annual 
156.26  unreduced single life retirement annuity amount determined under 
156.27  clause (4) at the age determined under clause (1), using the 
156.28  same actuarial factor that the plan would use to determine 
156.29  actuarial equivalence for optional annuity forms and related 
156.30  purposes, must be determined; and 
156.31     (6) the discounted value of the amount determined under 
156.32  clause (5) to the date of the prospective purchase, using an 
156.33  interest rate of 8.5 percent and no mortality probability 
156.34  decrement, must be determined. 
156.35     (c) The present value of the unreduced single life 
156.36  retirement annuity, without the purchase of the additional 
157.1   service credit included, must be calculated as follows:  
157.2      (1) the age at first eligibility for an unreduced single 
157.3   life retirement annuity, not including the purchase of 
157.4   additional service credit, must be determined; 
157.5      (2) the length of accrued service credit, without the 
157.6   period of the purchase of the additional service credit, at the 
157.7   age determined under clause (1), must be determined; 
157.8      (3) the highest five successive years average salary at the 
157.9   age determined under clause (1), assuming five percent annual 
157.10  compounding salary increases from the most current annual salary 
157.11  amount to the age determined under clause (1), must be 
157.12  determined; 
157.13     (4) using the benefit accrual rate or rates applicable to 
157.14  the prospective purchaser of the service credit based on the 
157.15  prospective purchaser's actual date of entry into covered 
157.16  service the length of service credit determined under clause 
157.17  (2), and the final average salary determined under clause (3), 
157.18  the annual unreduced single life retirement annuity amount must 
157.19  be determined; 
157.20     (5) the actuarial present value of the projected annual 
157.21  unreduced single life retirement annuity amount determined under 
157.22  clause (4) at the age determined under clause (1), using the 
157.23  same actuarial factor that the plan would use to determine 
157.24  actuarial equivalence for optional annuity forms and related 
157.25  purposes, must be determined; 
157.26     (6) the discounted value of the amount determined under 
157.27  clause (5) to the date of the prospective purchase, using an 
157.28  interest rate of 8.5 percent and no mortality probability 
157.29  decrement, must be determined; and 
157.30     (7) the net value of the discounted value determined under 
157.31  clause (6), must be determined by applying a service ratio, 
157.32  where the numerator is the total length of credited service 
157.33  determined under paragraph (b), clause (2), reduced by the 
157.34  period of the additional service credit proposed to be 
157.35  purchased, and where the denominator is the total length of 
157.36  service credit determined under clause (2). 
158.1      (d) The minimum prior service credit purchase payment 
158.2   amount is the amount determined by multiplying the most current 
158.3   annual salary of the prospective purchaser by the combined 
158.4   current employee, employer, and any additional employer 
158.5   contribution rates for the applicable pension plan and by 
158.6   multiplying that result by the number of years of service or 
158.7   fractions of years of service of the potential service credit 
158.8   purchase. 
158.9      Subd. 3.  [SOURCE OF DETERMINATION.] The prior service 
158.10  credit purchase payment amounts under subdivision 2 must be 
158.11  calculated by the chief administrative officer of the public 
158.12  pension plan using a prior service credit purchase payment 
158.13  amount determination process that has been verified for accuracy 
158.14  and consistency under this section by the commission-retained 
158.15  actuary.  That verification must be in writing and must occur 
158.16  before the first prior service credit purchase for the plan 
158.17  under this section is accepted and every five years thereafter 
158.18  or whenever the preretirement interest rate, postretirement 
158.19  interest rate, payroll growth, or mortality actuarial assumption 
158.20  for the applicable pension plan is modified under section 
158.21  356.215, whichever occurs first. 
158.22     Subd. 4.  [PRIOR SERVICE CREDIT PURCHASE PROCESSING FEE.] A 
158.23  public pension plan may establish a fee to be charged to the 
158.24  prospective purchaser for processing a prior service credit 
158.25  purchase application and the prior service credit purchase 
158.26  payment amount calculation.  The fee must be established by the 
158.27  governing board of the pension plan and must be uniform for 
158.28  comparable service credit purchase situations or actuarial 
158.29  calculation requests.  The prior service credit purchase 
158.30  processing fee structure must be published by the chief 
158.31  administrative officer of the applicable retirement plan in the 
158.32  State Register. 
158.33     Subd. 5.  [PAYMENT RESPONSIBILITY; EMPLOYER OPTION.] Unless 
158.34  the prior service credit purchase authorization special law or 
158.35  general statute provision explicitly specifies otherwise, the 
158.36  prior service credit purchase payment amount determined under 
159.1   subdivision 2 is payable by the purchaser~~, but~~.  However, the 
159.2   former employer of the purchaser or the current employer of the 
159.3   purchaser may, at its discretion, pay all or a portion of the 
159.4   purchase payment amount in excess of an amount equal to the 
159.5   employee contribution rate or rates in effect during the prior 
159.6   service period applied to the actual salary rates in effect 
159.7   during the prior service period, plus annual compound interest 
159.8   at the rate of 8.5 percent from the date on which the 
159.9   contributions would have been made if made contemporaneous with 
159.10  the service period to the date on which the payment is actually 
159.11  made. 
159.12     Subd. 6.  [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a) 
159.13  As part of the regular data reporting provided to the consulting 
159.14  actuary retained by the legislative commission on pensions and 
159.15  retirement annually, the chief administrative officer of each 
159.16  public pension plan that has accepted a prior service credit 
159.17  purchase payment under this section shall report for any 
159.18  purchase, the purchaser, the purchaser's employer, the age of 
159.19  the purchaser, the period of the purchase, the purchaser's 
159.20  prepurchase accrued service credit, the purchaser's postpurchase 
159.21  accrued service credit, the purchaser's prior service credit 
159.22  payment, the prior service credit payment made by the 
159.23  purchaser's employer, and the amount of the additional benefit 
159.24  or annuity purchased. 
159.25     (b) As a supplemental report to the regular annual 
159.26  actuarial valuation for the applicable public pension plan 
159.27  prepared by the consulting actuary retained by the legislative 
159.28  commission on pensions and retirement, ~~there must be~~ the actuary 
159.29  shall provide a comparison for each purchase showing the total 
159.30  prior service credit payment received from all sources and the 
159.31  increased public pension plan actuarial accrued liability 
159.32  resulting from each purchase. 
159.33     Subd. 7.  [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 
159.34  PROCEDURE.] (a) This section expires and is repealed on July 1, 
159.35  2003. 
159.36     (b) Authority for any public pension plan to accept a prior 
160.1   service credit payment that is calculated in a timely fashion 
160.2   under this section expires on October 1, 2003. 
160.3      Sec. 41.  Minnesota Statutes 2000, section 356.551, is 
160.4   amended to read: 
160.5      356.551 [POST JULY 1, ~~2001~~ 2003, PRIOR SERVICE CREDIT 
160.6   PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.] 
160.7      ~~(a)~~ Subdivision 1.  [APPLICATION.] Unless the prior service 
160.8   credit purchase authorization special law or general statute 
160.9   provision explicitly specifies a different purchase payment 
160.10  amount determination procedure, and if section 356.55 has 
160.11  expired, this section governs the determination of the prior 
160.12  service credit purchase payment amount of any prior service 
160.13  credit purchase. 
160.14     ~~(b)~~ Subd. 2.  [DETERMINATION.] The prior service credit 
160.15  purchase amount is an amount equal to the actuarial present 
160.16  value, on the date of payment, as calculated by the chief 
160.17  administrative officer of the pension plan and reviewed by the 
160.18  actuary retained by the legislative commission on pensions and 
160.19  retirement, of the amount of the additional retirement annuity 
160.20  obtained by the acquisition of the additional service credit in 
160.21  this section.  Calculation of this amount must be made using the 
160.22  preretirement interest rate applicable to the public pension 
160.23  plan specified in section 356.215, subdivision 4d, and the 
160.24  mortality table adopted for the public pension plan.  The 
160.25  calculation must assume continuous future service in the public 
160.26  pension plan until, and retirement at, the age at which the 
160.27  minimum requirements of the fund for normal retirement or 
160.28  retirement with an annuity unreduced for retirement at an early 
160.29  age, including section 356.30, are met with the additional 
160.30  service credit purchased.  The calculation must also assume a 
160.31  full-time equivalent salary, or actual salary, whichever is 
160.32  greater, and a future salary history that includes annual salary 
160.33  increases at the applicable salary increase rate for the plan 
160.34  specified in section 356.215, subdivision 4d.  Payment must be 
160.35  made in one lump sum within one year of the prior service credit 
160.36  authorization.  Payment of the amount calculated under this 
161.1   section must be made by the applicable eligible person.  
161.2   However, the current employer or the prior employer may, at its 
161.3   discretion, pay all or any portion of the payment amount that 
161.4   exceeds an amount equal to the employee contribution rates in 
161.5   effect during the period or periods of prior service applied to 
161.6   the actual salary rates in effect during the period or periods 
161.7   of prior service, plus interest at the rate of 8.5 percent a 
161.8   year compounded annually from the date on which the 
161.9   contributions would otherwise have been made to the date on 
161.10  which the payment is made.  If the employer agrees to payments 
161.11  under this ~~paragraph~~ subdivision, the purchaser must make the 
161.12  employee payments required under this ~~paragraph~~ subdivision 
161.13  within 290 days of the prior service credit authorization.  If 
161.14  that employee payment is made, the employer payment under 
161.15  this ~~paragraph~~ subdivision must be remitted to the chief 
161.16  administrative officer of the public pension plan within 60 days 
161.17  of receipt by the chief administrative officer of the employee 
161.18  payments specified under this ~~paragraph~~ subdivision. 
161.19     ~~(c)~~ Subd. 3.  [DOCUMENTATION.] The prospective purchaser 
161.20  must provide any relevant documentation required by the chief 
161.21  administrative officer of the public pension plan to determine 
161.22  eligibility for the prior service credit under this section. 
161.23     ~~(d)~~ Subd. 4.  [PAYMENT PRECONDITION FOR CREDIT GRANT.] 
161.24  Service credit for the purchase period must be granted by the 
161.25  public pension plan to the purchaser upon receipt of the 
161.26  purchase payment amount specified in ~~paragraph (b)~~ subdivision 2.
161.27     Sec. 42.  Minnesota Statutes 2001 Supplement, section 
161.28  356.555, is amended to read: 
161.29     356.555 [PARENTAL OR FAMILY LEAVE SERVICE CREDIT PURCHASE.] 
161.30     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZATION.] 
161.31  (a) Notwithstanding any provision to the contrary of the laws 
161.32  governing a covered pension plan enumerated in subdivision 4, a 
161.33  member of the pension plan who has at least three years of 
161.34  allowable service covered by the applicable pension plan and who 
161.35  was granted by the employer a parental leave of absence as 
161.36  defined in paragraph (b), or who was granted by the employer a 
162.1   family leave of absence as defined in paragraph (c), or who had 
162.2   a parental or family-related break in employment, as defined in 
162.3   paragraph (d), for which the person did not previously receive 
162.4   service credit or for which the person did not receive or 
162.5   purchase service credit from another defined benefit public 
162.6   employee pension plan, is entitled to purchase the actual period 
162.7   of the leave or of the break in service, up to five years, of 
162.8   allowable service credit in the applicable retirement plan.  The 
162.9   purchase payment amount is governed by section 356.55. 
162.10     (b) For purposes of this section, a parental leave of 
162.11  absence is a temporary period of interruption of or separation 
162.12  from active employment for the purposes of handling maternity or 
162.13  paternity duties that has been approved by the employing unit 
162.14  and that includes the right of reinstatement to employment. 
162.15     (c) For purposes of this section, a family leave of absence 
162.16  is a family leave under United States Code, title 42, section 
162.17  12631, as amended. 
162.18     (d) For purposes of this section, a parental or 
162.19  family-related break in employment is a period following a 
162.20  termination of active employment primarily for the purpose of 
162.21  the birth of a child, the adoption of a child, or the provision 
162.22  of care to a near relative or in-law, after which the person 
162.23  returned to the prior employing unit or to an employing unit 
162.24  covered by the same pension plan that provided retirement 
162.25  coverage immediately prior to the termination of employment. 
162.26     Subd. 2.  [APPLICATION AND DOCUMENTATION.] (a) A person who 
162.27  desires to purchase service credit under subdivision 1 must 
162.28  apply for the service credit purchase with the chief 
162.29  administrative officer of the enumerated pension plan.  
162.30     (b) The application must include all necessary 
162.31  documentation of the qualifications of the person to make the 
162.32  purchase, signed written permission to allow the chief 
162.33  administrative officer to request and receive necessary 
162.34  verification of all applicable facts and eligibility 
162.35  requirements, and any other relevant information that the chief 
162.36  administrative officer may require. 
163.1      Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
163.2   service credit in the applicable enumerated pension plan for the 
163.3   purchase period must be granted to the purchaser upon receipt of 
163.4   the purchase payment amount calculated under section 356.55.  
163.5   Payment of the purchase amount must be made before the person 
163.6   retires. 
163.7      Subd. 4.  [COVERED PENSION PLANS.] This section applies to 
163.8   the following pension plans: 
163.9      (1) the general state employees retirement plan governed by 
163.10  chapter 352; 
163.11     (2) the correctional state employees retirement plan 
163.12  governed by chapter 352; 
163.13     (3) the general ~~public~~ employees retirement plan of the 
163.14  public employees retirement association governed by chapter 353; 
163.15     (4) the public employees police and fire plan governed by 
163.16  chapter 353; 
163.17     (5) the teachers retirement plan governed by chapter 354; 
163.18     (6) the Minneapolis teachers retirement fund association 
163.19  governed by chapter 354A; 
163.20     (7) the Saint Paul teachers retirement fund association 
163.21  governed by chapter 354A; 
163.22     (8) the Duluth teachers retirement fund association 
163.23  governed by chapter 354A; 
163.24     (9) the Minneapolis employees retirement plan governed by 
163.25  chapter 422A; 
163.26     (10) the Minneapolis police relief association governed by 
163.27  chapter 423B; and 
163.28     (11) the Minneapolis fire department relief association 
163.29  governed by ~~sections 69.25 to 69.53 and augmented by Laws 1959,~~ 
163.30  ~~chapters 213, 491, and 568, and other special local legislation~~ 
163.31  chapter 423C. 
163.32                     COVERED SALARY LIMITATION 
163.33     Sec. 43.  Minnesota Statutes 2000, section 356.611, is 
163.34  amended to read: 
163.35     356.611 [LIMITATION ON PUBLIC EMPLOYEE SALARIES FOR PENSION 
163.36  PURPOSES.] 
164.1      Subdivision 1.  [STATE SALARY LIMITATIONS.] (a) 
164.2   Notwithstanding any provision of law, bylaws, articles of 
164.3   incorporation, retirement and disability allowance plan 
164.4   agreements, or retirement plan contracts to the contrary, the 
164.5   covered salary for pension purposes for a plan participant of a 
164.6   covered retirement fund ~~under~~ enumerated in section 356.30, 
164.7   subdivision 3, may not exceed 95 percent of the salary 
164.8   established for the governor under section 15A.082 at the time 
164.9   the person received the salary. 
164.10     (b) This section does not apply to a salary paid: 
164.11     (1) to the governor; 
164.12     (2) to an employee of a political subdivision in a position 
164.13  that is excluded from the limit as specified under section 
164.14  43A.17, subdivision 9; or 
164.15     (3) to a state employee in a position for which the 
164.16  commissioner of employee relations has approved a salary rate 
164.17  that exceeds 95 percent of the governor's salary. 
164.18     (c) The limited covered salary determined under this 
164.19  section must be used in determining employee and employer 
164.20  contributions and in determining retirement annuities and other 
164.21  benefits under the respective covered retirement fund and under 
164.22  this chapter. 
164.23     Subd. 2.  [FEDERAL COMPENSATION LIMITS.] For members first 
164.24  contributing to a covered pension plan ~~covered under~~ enumerated 
164.25  in section 356.30, subdivision 3, on or after July 1, 1995, 
164.26  compensation in excess of the limitation set forth in Internal 
164.27  Revenue Code 401(a)(17) ~~shall~~ may not be included for 
164.28  contribution and benefit computation purposes.  The compensation 
164.29  limit set forth in Internal Revenue Code 401(a)(17) on June 30, 
164.30  1993, ~~shall apply~~ applies to members first contributing before 
164.31  July 1, 1995. 
164.32                MEMBER CONTRIBUTION EMPLOYER PICK UP 
164.33     Sec. 44.  Minnesota Statutes 2001 Supplement, section 
164.34  356.62, is amended to read: 
164.35     356.62 [PAYMENT OF EMPLOYEE CONTRIBUTION.] 
164.36     (a) For purposes of any public pension plan, as defined in 
165.1   section 365.615, paragraph (b), each employer shall pick up the 
165.2   employee contributions required pursuant to law or the pension 
165.3   plan for all salary payable after December 31, 1982.  If the 
165.4   United States Treasury department rules that ~~pursuant to~~ under 
165.5   section 414(h) of the Internal Revenue Code of 1986, as amended 
165.6   through December 31, 1992, that these picked up contributions 
165.7   are not includable in the employee's adjusted gross income until 
165.8   they are distributed or made available, then these picked up 
165.9   contributions ~~shall~~ must be treated as employer contributions in 
165.10  determining tax treatment ~~pursuant to~~ under the Internal Revenue 
165.11  Code of 1986, as amended through December 31, 1992, and the 
165.12  employer shall discontinue withholding federal income taxes on 
165.13  the amount of these contributions.  The employer shall pay these 
165.14  picked up contributions from the same source of funds as is used 
165.15  to pay the salary of the employee.  The employer shall pick up 
165.16  these employee contributions by a reduction in the cash salary 
165.17  of the employee. 
165.18     (b) Employee contributions that are picked up ~~shall~~ must be 
165.19  treated for all purposes of the public pension plan in the same 
165.20  manner and to the same extent as employee contributions that 
165.21  were made prior to the date on which the employee contributions 
165.22  pick up began.  The amount of the employee contributions that 
165.23  are picked up ~~shall~~ must be included in the salary upon which 
165.24  retirement coverage is credited and retirement and survivor's 
165.25  benefits are determined.  For purposes of this section, 
165.26  "employee" means any person covered by a public pension plan.  
165.27  For purposes of this section, "employee contributions" include 
165.28  any sums deducted from the employee's salary or wages or 
165.29  otherwise paid in lieu thereof, regardless of whether they are 
165.30  denominated contributions by the public pension plan. 
165.31     (c) For any calendar year in which withholding has been 
165.32  reduced ~~pursuant to~~ under this section, the employing unit shall 
165.33  supply each employee and the commissioner of revenue with an 
165.34  information return indicating the amount of the employer's 
165.35  picked-up contributions for the calendar year that were not 
165.36  subject to withholding.  This return ~~shall~~ must be provided to 
166.1   the employee not later than January 31 of the succeeding 
166.2   calendar year.  The commissioner of revenue shall prescribe the 
166.3   form of the return and the provisions of section 289A.12 ~~shall~~ 
166.4   must apply to the extent not inconsistent with the provisions of 
166.5   this section. 
166.6                     PENSION ASSET AND INVESTMENT 
166.7                             LIMITATIONS 
166.8      Sec. 45.  [356.63] [LIMITATION ON USE OF PUBLIC PENSION 
166.9   PLAN ASSETS.] 
166.10     (a) Money held by or credited to a public pension plan as 
166.11  assets, including employer and employee contributions, state 
166.12  aid, appropriations from the state or a governmental 
166.13  subdivision, and accrued earnings on investments, constitutes a 
166.14  dedicated fund.  The dedicated fund may be used exclusively to 
166.15  pay retirement annuities, service pensions, disability benefits, 
166.16  survivor benefits, refunds of contributions, or other benefits 
166.17  provided under the benefit plan document or documents governing 
166.18  the public pension plan, and to pay reasonable administrative 
166.19  expenses approved by the governing board of the public pension 
166.20  plan or by another appropriate authority.  No assets of a public 
166.21  pension plan may be loaned or transferred to the state or a 
166.22  governmental subdivision or be used to amortize an unfunded 
166.23  actuarial accrued liability in another public pension plan or 
166.24  fund, whether or not the plan providing the assets consolidates 
166.25  or has consolidated with the plan receiving the assets.  Nothing 
166.26  in this section prohibits a public pension plan or the state 
166.27  board of investment from investing the assets of a plan as 
166.28  authorized by law, including the investment of the assets of 
166.29  public pension plans by the state board of investment in a 
166.30  commingled investment fund. 
166.31     (b) A public pension plan for purposes of this section 
166.32  means a pension plan or fund specified in section 356.20, 
166.33  subdivision 2, or 356.30, subdivision 3, or a retirement or 
166.34  pension plan or fund, including a supplemental retirement plan 
166.35  or fund, established, maintained, or supported by a governmental 
166.36  subdivision or public body whose revenues are derived from 
167.1   taxation, fees, assessments, or other public sources. 
167.2      Sec. 46.  [356.64] [REAL ESTATE INVESTMENTS.] 
167.3      (a) Notwithstanding any law to the contrary, any public 
167.4   pension plan whose assets are not invested by the state board of 
167.5   investment may invest its funds in Minnesota situs nonfarm real 
167.6   estate ownership interests or loans secured by mortgages or 
167.7   deeds of trust if the investment is consistent with section 
167.8   356A.04. 
167.9      (b) Except to the extent authorized in the case of the 
167.10  Minneapolis employees retirement fund under section 422A.05, 
167.11  subdivision 2c, paragraph (a), an investment otherwise 
167.12  authorized by this section must also comply with the 
167.13  requirements and limitations of section 11A.24, subdivision 6. 
167.14                   ABANDONED PENSION FUND AMOUNTS 
167.15     Sec. 47.  Minnesota Statutes 2001 Supplement, section 
167.16  356.65, subdivision 1, is amended to read: 
167.17     Subdivision 1.  [DEFINITIONS.] For purposes of this 
167.18  section, unless the context clearly indicates otherwise, each of 
167.19  the following terms ~~shall have~~ has the ~~meanings~~ meaning given to 
167.20  ~~them~~ it:  
167.21     (a) "Public pension fund" means any public pension plan as 
167.22  defined in section ~~356.615~~ 356.63, paragraph (b), and any 
167.23  Minnesota volunteer firefighters relief association which is 
167.24  established ~~pursuant to~~ under chapter 424A and governed ~~pursuant~~ 
167.25  ~~to~~ under sections 69.771 to 69.776. 
167.26     (b) "Unclaimed public pension fund amounts" means any 
167.27  amounts representing accumulated member contributions, any 
167.28  outstanding unpaid annuity, service pension or other retirement 
167.29  benefit payments, including those made on warrants issued by the 
167.30  commissioner of finance, which have been issued and delivered 
167.31  for more than six months prior to the date of the end of the 
167.32  fiscal year applicable to the public pension fund, and any 
167.33  applicable interest to the credit of:  
167.34     (1) an inactive or former member of a public pension fund 
167.35  who is not entitled to a defined retirement annuity and who has 
167.36  not applied for a refund of those amounts within five years 
168.1   after the last member contribution was made; or 
168.2      (2) a deceased inactive or former member of a public 
168.3   pension fund if no survivor is entitled to a survivor benefit 
168.4   and no survivor, designated beneficiary or legal representative 
168.5   of the estate has applied for a refund of those amounts within 
168.6   five years after the date of death of the inactive or former 
168.7   member. 
168.8      Sec. 48.  Minnesota Statutes 2000, section 356.65, 
168.9   subdivision 2, is amended to read: 
168.10     Subd. 2.  [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed 
168.11  public pension fund amounts existing in any public pension 
168.12  fund ~~shall be~~ are presumed to be abandoned, but ~~shall~~ are not 
168.13  ~~be~~ subject to the provisions of sections 345.31 to 345.60.  
168.14  Unless the benefit plan of the public pension fund specifically 
168.15  provides for a different disposition of unclaimed or abandoned 
168.16  funds or amounts, any unclaimed public pension fund 
168.17  amounts ~~shall~~ cancel and ~~shall~~ must be credited to the public 
168.18  pension fund.  If the unclaimed public pension fund amount 
168.19  exceeds $25 and the inactive or former member again becomes a 
168.20  member of the applicable public pension ~~fund~~ plan or applies for 
168.21  a retirement annuity ~~pursuant to~~ under section 3A.12, 352.72, 
168.22  352B.30, 352C.051, 353.71, 354.60, 356.30, or 422A.16, 
168.23  subdivision 8, whichever ~~is applicable,~~ applies, the canceled 
168.24  amount ~~shall~~ must be restored to the credit of the person.  
168.25                    HEALTH INSURANCE WITHHOLDING
168.26     Sec. 49.  Minnesota Statutes 2000, section 356.87, is 
168.27  amended to read: 
168.28     356.87 [HEALTH INSURANCE WITHHOLDING.] 
168.29     (a) Upon authorization of a person entitled to receive a 
168.30  retirement annuity, disability benefit or survivor benefit, the 
168.31  executive director of a public pension fund ~~listed~~ enumerated in 
168.32  section 356.20, subdivision 2, shall withhold health insurance 
168.33  premium amounts from the retirement annuity, disability benefit 
168.34  or survivor benefit, and shall pay the premium amounts to the 
168.35  public employees insurance program.  
168.36     (b) The public employees insurance program shall reimburse 
169.1   a public pension fund for the administrative expense of 
169.2   withholding the premium amounts and shall assume liability for 
169.3   the failure of a public pension fund to properly withhold the 
169.4   premium amounts. 
169.5                           RETIREMENT PLAN 
169.6                            ADMINISTRATION 
169.7      Sec. 50.  [356B.05] [PUBLIC PENSION ADMINISTRATION 
169.8   LEGISLATION.] 
169.9      (a) Proposed administrative legislation recommended by or 
169.10  on behalf of the Minnesota state retirement system, the public 
169.11  employees retirement association, the teachers retirement 
169.12  association, the Minneapolis employees retirement fund, or a 
169.13  first class city teachers retirement fund association must be 
169.14  presented to the legislative commission on pensions and 
169.15  retirement, the state and local governmental operations 
169.16  committee of the senate, and the governmental operations and 
169.17  veterans affairs policy committee of the house of 
169.18  representatives on or before October 1 of each year in order for 
169.19  the proposed administrative legislation to be acted upon during 
169.20  the upcoming legislative session.  The executive director or the 
169.21  deputy executive director of the legislative commission on 
169.22  pensions and retirement shall provide written comments on the 
169.23  proposed administrative provisions to the public pension plans 
169.24  by November 15 of each year. 
169.25     (b) Proposed administrative legislation recommended by or 
169.26  on behalf of a public employee pension plan or system under 
169.27  paragraph (a) must address provisions: 
169.28     (1) authorizing allowable service credit for leaves of 
169.29  absence and related circumstances; 
169.30     (2) governing offsets or deductions from the amount of 
169.31  disability benefits; 
169.32     (3) authorizing the purchase of allowable service credit 
169.33  for prior uncredited periods; 
169.34     (4) governing subsequent employment earnings by reemployed 
169.35  annuitants; and 
169.36     (5) authorizing retroactive effect for retirement annuity 
170.1   or benefit applications. 
170.2      (c) Where possible and desirable, taking into account the 
170.3   differences among the public pension plans in existing law and 
170.4   the unique characteristics of the individual public pension fund 
170.5   memberships, uniform provisions relating to paragraph (b) for 
170.6   all applicable public pension plans must be presented for 
170.7   consideration during the legislative session.  Supporting 
170.8   documentation setting forth the policy rationale for each set of 
170.9   uniform provisions must accompany the proposed administrative 
170.10  legislation. 
170.11     Sec. 51.  [356B.10] [PUBLIC PENSION FACILITIES.] 
170.12     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
170.13  subdivision apply to this section. 
170.14     (b) "Boards" mean the board of directors of the Minnesota 
170.15  state retirement system, the board of trustees of the public 
170.16  employees retirement association, and the board of trustees of 
170.17  the teachers retirement association. 
170.18     (c) "Commissioner" means the commissioner of administration.
170.19     Subd. 2.  [BUILDING; RELATED FACILITIES.] (a) The 
170.20  commissioner of administration may provide a building and 
170.21  related facilities to be jointly occupied by the board of 
170.22  directors of the Minnesota state retirement system, the board of 
170.23  trustees of the public employees retirement association, and the 
170.24  board of trustees of the teachers retirement association for the 
170.25  administration of their public pension systems.  
170.26     (b) Design of the facilities is not subject to section 
170.27  16B.33.  The competitive acquisition process set forth in 
170.28  chapter 16C does not apply if the process set forth in 
170.29  subdivision 3 is followed.  
170.30     (c) The boards and the commissioner must submit the plans 
170.31  for a public pension facility under this section to the chair of 
170.32  the house ways and means committee and to the chair of the 
170.33  senate state government finance committee for their approval 
170.34  before the plans are implemented.  
170.35     Subd. 3.  [CONTRACTING PROCEDURES.] (a) The commissioner 
170.36  may enter into a contract for facilities with a contractor to 
171.1   furnish the architectural, engineering, and related services as 
171.2   well as the labor, materials, supplies, equipment, and related 
171.3   construction services on the basis of a request for 
171.4   qualifications and competitive responses received through a 
171.5   request for proposals process that must include the items listed 
171.6   in paragraphs (b) to (i). 
171.7      (b) Before issuing a request for qualifications and a 
171.8   request for proposals, the commissioner, with the assistance of 
171.9   the boards, shall prepare performance criteria and 
171.10  specifications that include: 
171.11     (1) a general floor plan or layout indicating the general 
171.12  dimensions of the public building and space requirements; 
171.13     (2) design criteria for the exterior and site area; 
171.14     (3) performance specifications for all building systems and 
171.15  components to ensure quality and cost efficiencies; 
171.16     (4) conceptual floor plans for systems space; 
171.17     (5) preferred types of interior finishes, styles of 
171.18  windows, lighting and outlets, doors, and features such as 
171.19  built-in counters and telephone wiring; 
171.20     (6) mechanical and electrical requirements; 
171.21     (7) special interior features required; and 
171.22     (8) a completion schedule. 
171.23     (c) The commissioner shall first solicit statements of 
171.24  qualifications from eligible contractors and select more than 
171.25  one qualified contractor based upon experience, technical 
171.26  competence, past performance, capability to perform, and other 
171.27  appropriate facts.  Contractors selected under this process must 
171.28  be, employ, or have as a partner, member, coventurer, or 
171.29  subcontractor, persons licensed and registered under chapter 326 
171.30  to provide the services required to design and complete the 
171.31  project.  The commissioner does not have to select any of the 
171.32  respondents if none reasonably fulfill the criteria set forth in 
171.33  this paragraph. 
171.34     (d) The contractors selected shall be asked to respond to a 
171.35  request for proposals.  Responses must include site plans, 
171.36  design concept, elevation, statement of material to be used, 
172.1   floor layouts, a detailed development budget, and a total cost 
172.2   to complete the project.  The proposal must indicate that the 
172.3   contractor obtained at least two proposals from subcontractors 
172.4   for each item of work and must set forth how the subcontractors 
172.5   were selected.  The commissioner, with the assistance of the 
172.6   boards, shall evaluate the proposals based upon design, cost, 
172.7   quality, aesthetics, and the best overall value to the state 
172.8   pension funds.  The commissioner need not select any of the 
172.9   proposals submitted and reserves the right to reject any and all 
172.10  proposals, and may terminate the process or revise the request 
172.11  for proposals and solicit new proposals if the commissioner 
172.12  determines that the best interests of the pension funds would be 
172.13  better served by doing so.  Proposals submitted are nonpublic 
172.14  data until the contract is awarded. 
172.15     (e) The contractor selected must comply with sections 
172.16  574.26 to 574.261.  Before executing a final contract, the 
172.17  contractor selected shall certify a firm construction price and 
172.18  completion date. 
172.19     (f) The commissioner may consider building sites in the 
172.20  city of St. Paul and surrounding suburbs. 
172.21     (g) Any land, building, or facility leased, constructed, or 
172.22  acquired and any leasehold interest acquired under this section 
172.23  must be held by the state in trust for the three retirement 
172.24  systems as tenants in common.  Each retirement system fund must 
172.25  consider its interest as a fixed asset of its pension fund in 
172.26  accordance with governmental accounting standards. 
172.27     (h) The commissioner may lease to another governmental 
172.28  subdivision, to a private company under contract with the state 
172.29  board of investment, or with the board of directors of the 
172.30  Minnesota state retirement system, whichever applies, to provide 
172.31  deferred compensation services under section 352.96, any portion 
172.32  of the funds' building and lands that is not required for their 
172.33  direct use upon terms and conditions they deem to be in the best 
172.34  interest of the pension funds.  Any income accruing from the 
172.35  rentals must be separately accounted for and utilized to offset 
172.36  ongoing administrative expenses and any excess must be carried 
173.1   forward for future administrative expenses.  The commissioner 
173.2   may also enter into lease agreements for the establishment of 
173.3   satellite offices should the boards find them to be necessary in 
173.4   order to assure their members reasonable access to their 
173.5   services.  The commissioner may lease under section 16B.24 any 
173.6   portion of the facilities not required for the direct use of the 
173.7   boards. 
173.8      (i) The boards shall formulate and adopt a written working 
173.9   agreement that sets forth the nature of each retirement system's 
173.10  ownership interest, the duties and obligations of each system 
173.11  toward the construction, operation, and maintenance costs of its 
173.12  facilities, and identifies one retirement fund to serve as 
173.13  manager for operating and maintenance purposes.  The boards may 
173.14  contract with independent third parties for maintenance-related 
173.15  activities, services, and supplies, and may use the services of 
173.16  the department of administration where economically feasible to 
173.17  do so.  If the boards cannot agree or resolve a dispute about 
173.18  operations or maintenance of the facilities, they may request 
173.19  the commissioner of administration to appoint a representative 
173.20  from the department's real estate management division to serve 
173.21  as arbitrator of the dispute with authority to issue a written 
173.22  resolution of the dispute. 
173.23     Subd. 4.  [REVENUE BONDS.] The commissioner of finance, on 
173.24  request of the governor, may sell and issue revenue bonds in an 
173.25  aggregate principal amount up to $38,000,000 to achieve the 
173.26  purposes described in subdivisions 1 and 2, plus the amount 
173.27  needed to pay issuance costs and interest costs and to establish 
173.28  necessary reserves to secure the bonds.  The commissioner of 
173.29  finance may issue bonds for the purpose of refunding bonds 
173.30  issued under this subdivision.  The bonds may be sold and issued 
173.31  on terms and in a manner the commissioner of finance determines 
173.32  to be in the best interests of the state.  The proceeds of the 
173.33  bonds must be credited to a bond proceeds account in the pension 
173.34  building fund which the commissioner of finance must create in 
173.35  the state treasury. 
173.36     Subd. 5.  [SECURITY.] The boards may pledge any or all 
174.1   assets of the boards as security for the bonds.  The bonds and 
174.2   the interest on them must be paid solely from and secured by all 
174.3   assets of the boards pledged and appropriated for these purposes 
174.4   to the debt service fund created in subdivision 6 and any 
174.5   investment income on the fund and any reserve established for 
174.6   this purpose.  The bonds are not public debt, and the full 
174.7   faith, credit, and taxing powers of the state are not pledged 
174.8   for their payment.  The bonds and the interest on them must not 
174.9   be paid, directly or indirectly, in whole or in part, from a tax 
174.10  of statewide application on any class of property, income, 
174.11  transaction, or privilege. 
174.12     Subd. 6.  [DEBT SERVICE FUND.] There is established in the 
174.13  state treasury a separate and special pension building debt 
174.14  service fund.  Money in the funds managed by the boards is 
174.15  appropriated to the boards for transfer to the pension building 
174.16  debt service fund.  Money appropriated and transferred to the 
174.17  fund and investment income on it on hand or required to be 
174.18  transferred to the fund must be used and is irrevocably 
174.19  appropriated to pay when due the principal of and interest on 
174.20  the bonds authorized in subdivision 4.  
174.21     Subd. 7.  [COVENANTS; AGREEMENTS.] The commissioner of 
174.22  finance may, for and on behalf of the state, enter into 
174.23  covenants and agreements not inconsistent with subdivisions 1 to 
174.24  6 as may be necessary or desirable to facilitate the sale and 
174.25  issuance of the bonds on terms favorable to the state, 
174.26  including, but not limited to, covenants and agreements relating 
174.27  to the payment of and security for the bonds, tax exemption, and 
174.28  disclosure of information required by federal and state 
174.29  securities laws.  The covenants and agreements of the 
174.30  commissioner of finance constitute an enforceable contract of 
174.31  the state and the state pledges and agrees with the holders of 
174.32  any bonds that the state will not limit or alter the rights 
174.33  vested in the commissioner of finance to fulfill the terms of 
174.34  the covenants or agreements made with the holders of the bonds, 
174.35  or in any way impair the rights and remedies of the holders 
174.36  until the bonds, together with the interest on them, with 
175.1   interest on any unpaid installments of interest, and all costs 
175.2   and expenses in connection with any action or proceeding by or 
175.3   on behalf of the holders, are fully met and discharged.  The 
175.4   commissioner of finance may include this pledge and agreement of 
175.5   the state in any covenant or agreement with the holders of the 
175.6   bonds.  Sections 16A.672 and 16A.675 apply to the bonds. 
175.7      Sec. 52.  [CROSS-REFERENCE CHANGES.] 
175.8      In the next and subsequent editions of Minnesota Statutes, 
175.9   the revisor of statutes shall, in each section indicated in 
175.10  column A, replace the cross-reference specified in column B with 
175.11  the cross-reference set forth in column C: 
175.12     column A            column B             column C
175.13  3.751, subd. 1       356.89              356B.10
175.14  3A.02, subd. 1       356.215, subd. 4d   356.215, subd. 8
175.15  3A.02, subd. 4       356.215, subd. 4d   356.215, subd. 8
175.16  3A.11, subd. 1       356.215, subd. 4d   356.215, subd. 8
175.17  11A.18, subd. 6      356.215, subd. 4d   356.215, subd. 8
175.18  11A.18, subd. 9      356.215, subd. 4d   356.215, subd. 8
175.19  11A.18, subd. 11     356.215, subd. 4d   356.215, subd. 8
175.20  13.631, subd. 2      356.80              356.49
175.21  69.77, subd. 2b      356.215, subds. 4   356.215, subds. 4 to 15
175.22                         to 4k
175.23  69.77, subd. 2b      356.215, subd. 4d   356.215, subd. 8
175.24  69.773, subd. 2      356.215, subd. 4d   356.215, subd. 8
175.25  69.773, subd. 4      356.215, subd. 4d   356.215, subd. 8
175.26  352.01, subd. 12     356.215, subd. 4d   356.215, subd. 8
175.27  352.115, subd. 3     356.119, subd. 1    356.315, subd. 1
175.28  352.115, subd. 3     356.119, subd. 2    356.315, subd. 2
175.29  352.115, subd. 10    356.58              356.47
175.30  352.119, subd. 2     356.215, subd. 4d   356.215, subd. 8
175.31  352.72, subd. 2      356.215, subd. 4d   356.215, subd. 8
175.32  352.87, subd. 3      356.119, subd. 2a   356.315, subd. 2a
175.33  352.91, subd. 5      356.215, subd. 4d   356.215, subd. 8
175.34  352.93, subd. 2      356.119, subd. 5    356.315, subd. 5
175.35  352.95, subd. 1      356.119, subd. 5    356.315, subd. 5
175.36  352B.08, subd. 2     356.119, subd. 6    356.315, subd. 6
176.1   352B.08, subd. 3     356.215, subd. 4d   356.215, subd. 8
176.2   352B.10, subd. 1     356.119, subd. 6    356.315, subd. 6
176.3   352B.26, subd. 3     356.215, subd. 4d   356.215, subd. 8
176.4   352B.30, subd. 4     356.215, subd. 4d   356.215, subd. 8
176.5   352C.031, subd. 4    356.215, subd. 4d   356.215, subd. 8
176.6   352C.033             356.215, subd. 4d   356.215, subd. 8
176.7   353.01, subd. 14     356.215, subd. 4d   356.215, subd. 8
176.8   353.03, subd. 3      356.215, subd. 4,   356.215, subd. 8
176.9                          clause (4)
176.10  353.271, subd. 2     356.215, subd. 4d   356.215, subd. 8
176.11  353.29, subd. 3      356.119, subd. 3    356.315, subd. 3
176.12  353.29, subd. 3      356.119, subd. 4    356.315, subd. 4
176.13  353.29, subd. 3      356.119, subd. 1    356.315, subd. 1
176.14  353.29, subd. 3      356.119, subd. 2    356.315, subd. 2
176.15  353.29, subd. 4      356.371, subd. 3    356.46, subd. 3
176.16  353.37, subd. 3a     356.58              356.47
176.17  353.651, subd. 3     356.119, subd. 6    356.315, subd. 6
176.18  353.656, subd. 1     356.119, subd. 6    356.315, subd. 6
176.19  353.665, subd. 8     356.215, subd. 4d   356.215, subd. 8
176.20  353.71, subd. 2      356.215, subd. 4d   356.215, subd. 8
176.21  353A.08, subd. 1     356.215, subd. 4d   356.215, subd. 8
176.22  353A.08, subd. 2     356.215, subd. 4d   356.215, subd. 8
176.23  353A.09, subd. 2     356.215, subd. 4d   356.215, subd. 8
176.24  353A.09, subd. 5     356.215, subd. 4d   356.215, subd. 8
176.25  353E.04, subd. 3     356.119, subd. 5a   356.315, subd. 5a
176.26  353E.06, subd. 1     356.119, subd. 5a   356.315, subd. 5a
176.27  354.05, subd. 7      356.215, subd. 4d   356.215, subd. 8
176.28  354.07, subd. 1      356.215, subd. 4d   356.215, subd. 8
176.29  354.44, subd. 2      356.215, subd. 4d   356.215, subd. 8
176.30  354.44, subd. 5      356.58              356.47
176.31  354.44, subd. 6      356.119, subd. 1    356.315, subd. 1
176.32  354.44, subd. 6      356.119, subd. 2    356.315, subd. 2
176.33  354.44, subd. 6      356.119, subd. 3    356.315, subd. 3
176.34  354.44               356.119             356.315
176.35  354.45, subd. 2      356.215, subd. 4d   356.215, subd. 8
176.36  354.48, subd. 3      356.215, subd. 4d   356.215, subd. 8
177.1   354.55, subd. 11     356.215, subd. 4d   356.215, subd. 8
177.2   354.63, subd. 2      356.215, subd. 4d   356.215, subd. 8
177.3   354A.011, subd. 3    356.215, subd. 4d   356.215, subd. 8
177.4   354A.026             356.215, subd. 4g   356.215, subd. 11
177.5   354A.105             356.215, subd. 4d   356.215, subd. 8
177.6   354A.12, subd. 1a    356.215, subd. 4d   356.215, subd. 8
177.7   354A.31, subd. 1a    356.371, subd. 3    356.46, subd. 3
177.8   354A.31, subd. 3     356.58              356.47
177.9   354A.31, subd. 4     356.119, subd. 1    356.315, subd. 1
177.10  354A.31, subd. 4     356.119, subd. 2    356.315, subd. 2
177.11  354A.31, subd. 4a    356.119, subd. 1    356.315, subd. 1
177.12  354A.31, subd. 4a    356.119, subd. 2    356.315, subd. 2
177.13  354A.34              356.215, subd. 4d   356.215, subd. 8
177.14  422A.01, subd. 6     356.215, subd. 4d   356.215, subd. 8
177.15  422A.06, subd. 5     356.215, subd. 4d   356.215, subd. 8
177.16  422A.08, subd. 5a    356.215, subd. 4d   356.215, subd. 8
177.17  422A.101, subd. 3    356.865             356.43
177.18  422A.15, subd. 2     356.215, subd. 4d   356.215, subd. 8
177.19  422A.15, subd. 3     356.215, subd. 4d   356.215, subd. 8
177.20  422A.16, subd. 2     356.215, subd. 4d   356.215, subd. 8
177.21  422A.17              356.215, subd. 4d   356.215, subd. 8
177.22  422A.23, subd. 12    356.215, subd. 4d   356.215, subd. 8
177.23  423A.02, subd. 1     356.215, subd. 4,   356.215, subd. 8
177.24                         clause (4)
177.25  490.121, subd. 20    356.215, subd. 4d   356.215, subd. 8
177.26  490.121, subd. 22    356.119, subd. 7    356.315, subd. 7
177.27  490.124, subd. 1     356.119, subd. 7    356.315, subd. 7
177.28  490.124, subd. 1     356.119, subd. 8    356.315, subd. 8
177.29  490.124, subd. 5     356.215, subd. 4d   356.215, subd. 8
177.30     Sec. 53.  [REPEALER.] 
177.31     Subdivision 1.  [REPEALER OF OBSOLETE 
177.32  PROVISIONS.] Minnesota Statutes 2000, sections 356.325; 356.35; 
177.33  356.36; 356.37; 356.38; 356.39; 356.45; 356.451; 356.452; 
177.34  356.453; 356.454; and 356.455, are repealed.  
177.35     Subd. 2.  [REPEALER OF PROVISIONS REORGANIZED.] (a) 
177.36  Minnesota Statutes 2000, sections 356.19; 356.305; 356.306; 
178.1   356.31; 356.371, subdivisions 2 and 3; 356.372; 356.615; 356.71; 
178.2   356.80; 356.81; 356.86; 356.865; 356.88; and 356.89, are 
178.3   repealed. 
178.4      (b) Minnesota Statutes 2001 Supplement, sections 356.371, 
178.5   subdivision 1; and 356.866, are repealed. 
178.6      Subd. 3.  [REPEALER TO RESOLVE REVISOR NOTE.] Laws 1997, 
178.7   chapter 233, article 1, section 58, is repealed. 
178.8      Sec. 54.  [EFFECTIVE DATE.] 
178.9      (a) Sections 1 to 53 are effective July 1, 2002. 
178.10     (b) Section 51 is the continuation of the public pension 
178.11  facility authority previously contained in Minnesota Statutes 
178.12  2000, section 356.89, and may not be considered a grant of 
178.13  authority to build or bond for a second building. 
178.14                             ARTICLE 12
178.15                       JOINT RETIREMENT PLAN
178.16                      BUILDING LEASE AUTHORITY
178.17     Section 1.  Minnesota Statutes 2000, section 356.89, 
178.18  subdivision 3, is amended to read: 
178.19     Subd. 3.  [CONTRACTING PROCEDURES.] (a) The commissioner 
178.20  may enter into a contract for facilities with a contractor to 
178.21  furnish the architectural, engineering, and related services as 
178.22  well as the labor, materials, supplies, equipment, and related 
178.23  construction services on the basis of a request for 
178.24  qualifications and competitive responses received through a 
178.25  request for proposals process that must include the items listed 
178.26  in paragraphs (b) to (i). 
178.27     (b) Before issuing a request for qualifications and a 
178.28  request for proposals, the commissioner, with the assistance of 
178.29  the boards, shall prepare performance criteria and 
178.30  specifications that include: 
178.31     (1) a general floor plan or layout indicating the general 
178.32  dimensions of the public building and space requirements; 
178.33     (2) design criteria for the exterior and site area; 
178.34     (3) performance specifications for all building systems and 
178.35  components to ensure quality and cost efficiencies; 
178.36     (4) conceptual floor plans for systems space; 
179.1      (5) preferred types of interior finishes, styles of 
179.2   windows, lighting and outlets, doors, and features such as 
179.3   built-in counters and telephone wiring; 
179.4      (6) mechanical and electrical requirements; 
179.5      (7) special interior features required; and 
179.6      (8) a completion schedule. 
179.7      (c) The commissioner shall first solicit statements of 
179.8   qualifications from eligible contractors and select more than 
179.9   one qualified contractor based upon experience, technical 
179.10  competence, past performance, capability to perform, and other 
179.11  appropriate facts.  Contractors selected under this process must 
179.12  be, employ, or have as a partner, member, coventurer, or 
179.13  subcontractor, persons licensed and registered under chapter 326 
179.14  to provide the services required to design and complete the 
179.15  project.  The commissioner does not have to select any of the 
179.16  respondents if none reasonably fulfill the criteria set forth in 
179.17  this paragraph. 
179.18     (d) The contractors selected shall be asked to respond to a 
179.19  request for proposals.  Responses must include site plans, 
179.20  design concept, elevation, statement of material to be used, 
179.21  floor layouts, a detailed development budget, and a total cost 
179.22  to complete the project.  The proposal must indicate that the 
179.23  contractor obtained at least two proposals from subcontractors 
179.24  for each item of work and must set forth how the subcontractors 
179.25  were selected.  The commissioner, with the assistance of the 
179.26  boards, shall evaluate the proposals based upon design, cost, 
179.27  quality, aesthetics, and the best overall value to the state 
179.28  pension funds.  The commissioner need not select any of the 
179.29  proposals submitted and reserves the right to reject any and all 
179.30  proposals, and may terminate the process or revise the request 
179.31  for proposals and solicit new proposals if the commissioner 
179.32  determines that the best interests of the pension funds would be 
179.33  better served by doing so.  Proposals submitted are nonpublic 
179.34  data until the contract is awarded. 
179.35     (e) The contractor selected must comply with sections 
179.36  574.26 to 574.261.  Before executing a final contract, the 
180.1   contractor selected shall certify a firm construction price and 
180.2   completion date. 
180.3      (f) The commissioner may consider building sites in the 
180.4   city of St. Paul and surrounding suburbs. 
180.5      (g) Any land, building, or facility leased, constructed, or 
180.6   acquired and any leasehold interest acquired under this section 
180.7   must be held by the state in trust for the three retirement 
180.8   systems as tenants in common.  Each retirement system fund must 
180.9   consider its interest as a fixed asset of its pension fund in 
180.10  accordance with governmental accounting standards. 
180.11     (h) The commissioner may lease to another governmental 
180.12  subdivision, or to a private company under contract with the 
180.13  state board of investment or with the board of directors of the 
180.14  Minnesota state retirement system, whichever applies, to provide 
180.15  deferred compensation services under section 352.96, any portion 
180.16  of the funds' building and lands that is not required for their 
180.17  direct use upon terms and conditions they deem to be in the best 
180.18  interest of the pension funds.  Any income accruing from the 
180.19  rentals must be separately accounted for and utilized to offset 
180.20  ongoing administrative expenses and any excess must be carried 
180.21  forward for future administrative expenses.  The commissioner 
180.22  may also enter into lease agreements for the establishment of 
180.23  satellite offices should the boards find them to be necessary in 
180.24  order to assure their members reasonable access to their 
180.25  services.  The commissioner may lease under section 16B.24 any 
180.26  portion of the facilities not required for the direct use of the 
180.27  boards. 
180.28     (i) The boards shall formulate and adopt a written working 
180.29  agreement that sets forth the nature of each retirement system's 
180.30  ownership interest, the duties and obligations of each system 
180.31  toward the construction, operation, and maintenance costs of its 
180.32  facilities, and identifies one retirement fund to serve as 
180.33  manager for operating and maintenance purposes.  The boards may 
180.34  contract with independent third parties for maintenance-related 
180.35  activities, services, and supplies, and may use the services of 
180.36  the department of administration where economically feasible to 
181.1   do so.  If the boards cannot agree or resolve a dispute about 
181.2   operations or maintenance of the facilities, they may request 
181.3   the commissioner of administration to appoint a representative 
181.4   from the department's real estate management division to serve 
181.5   as arbitrator of the dispute with authority to issue a written 
181.6   resolution of the dispute. 
181.7      Sec. 2.  [EFFECTIVE DATE.] 
181.8      Section 1 is effective July 1, 2002. 
181.9                              ARTICLE 13
181.10                    VOLUNTEER FIREFIGHTER RELIEF
181.11              ASSOCIATIONS SERVICE PENSION ELIGIBILITY
181.12     Section 1.  Minnesota Statutes 2000, section 424A.02, 
181.13  subdivision 1, is amended to read: 
181.14     Subdivision 1.  [AUTHORIZATION.] (a) A relief association, 
181.15  when its articles of incorporation or bylaws so provide, may pay 
181.16  out of the assets of its special fund a service pension to each 
181.17  of its members who:  (1) separates from active service with the 
181.18  fire department; (2) reaches age 50; (3) completes at least five 
181.19  years of active service as an active member of the municipal 
181.20  fire department to which the relief association is associated; 
181.21  (4) completes at least five years of active membership with the 
181.22  relief association before separation from active service; and 
181.23  (5) complies with any additional conditions as to age, service, 
181.24  and membership that are prescribed by the bylaws of the relief 
181.25  association.  A service pension computed under this section may 
181.26  be prorated monthly for fractional years of service, if the 
181.27  bylaws or articles of incorporation of the relief association so 
181.28  provide.  The service pension may be paid whether or not the 
181.29  municipality or nonprofit firefighting corporation to which the 
181.30  relief association is associated qualifies for fire state aid 
181.31  under chapter 69.  
181.32     (b) In the case of a member who has completed at least five 
181.33  years of active service as an active member of the fire 
181.34  department to which the relief association is associated on the 
181.35  date that the relief association is established and 
181.36  incorporated, the requirement that the member complete at least 
182.1   five years of active membership with the relief association 
182.2   before separation from active service may be waived by the board 
182.3   of trustees of the relief association if the member completes at 
182.4   least five years of inactive membership with the relief 
182.5   association before the payment of the service pension.  During 
182.6   the period of inactive membership, the member is not entitled to 
182.7   receive disability benefit coverage, is not entitled to receive 
182.8   additional service credit towards computation of a service 
182.9   pension, and is considered to have the status of a person 
182.10  entitled to a deferred service pension under subdivision 7. 
182.11     (c) No municipality or nonprofit firefighting corporation 
182.12  may delegate the power to take final action in setting a service 
182.13  pension or ancillary benefit amount or level to the board of 
182.14  trustees of the relief association or to approve in advance a 
182.15  service pension or ancillary benefit amount or level equal to 
182.16  the maximum amount or level that this chapter would allow rather 
182.17  than a specific dollar amount or level.  
182.18     (d) No relief association as defined in section 424A.001, 
182.19  subdivision 4, may pay a service pension or disability benefit 
182.20  to a former member of the relief association if that person has 
182.21  not separated from active service with the fire department to 
182.22  which the relief association is directly associated, unless: 
182.23     (1) the person is employed subsequent to retirement by the 
182.24  municipality or the independent nonprofit firefighting 
182.25  corporation, whichever applies, to perform duties within the 
182.26  municipal fire department or corporation on a full-time basis; 
182.27     (2) the governing body of the municipality or of the 
182.28  corporation has filed its determination with the board of 
182.29  trustees of the relief association that the person's experience 
182.30  with and service to the fire department in that person's 
182.31  full-time capacity would be difficult to replace; and 
182.32     (3) the bylaws of the relief association were amended to 
182.33  provide for the payment of a service pension or disability 
182.34  benefit for such full-time employees. 
182.35                             ARTICLE 14
182.36                       ADDITIONAL PROVISIONS
183.1      Section 1.  Laws 1997, chapter 202, article 2, section 61, 
183.2   as amended by Laws 1999, chapter 250, article 1, section 106, 
183.3   and Laws 2001, First Special Session chapter 10, article 2, 
183.4   section 85, is amended to read: 
183.5      Sec. 61.  [VOLUNTARY UNPAID LEAVE OF ABSENCE.] 
183.6      Appointing authorities in state government may allow each 
183.7   employee to take an unpaid leave of absence for up to 320 hours 
183.8   during the period ending June 30, 2003, and an additional 160 
183.9   hours during the period beginning July 1, 2003, and ending June 
183.10  30, 2005.  Each appointing authority approving such a leave 
183.11  shall allow the employee to continue accruing vacation and sick 
183.12  leave, be eligible for paid holidays and insurance benefits, 
183.13  accrue seniority, and accrue service credit in state retirement 
183.14  plans permitting service credits for authorized leaves of 
183.15  absence as if the employee had actually been employed during the 
183.16  time of the leave.  If the leave of absence is for one full pay 
183.17  period or longer, any holiday pay shall be included in the first 
183.18  payroll warrant after return from the leave of absence.  The 
183.19  appointing authority shall attempt to grant requests for unpaid 
183.20  leaves of absence consistent with the need to continue efficient 
183.21  operation of the agency.  However, each appointing authority 
183.22  shall retain discretion to grant or refuse to grant requests for 
183.23  leaves of absence and to schedule and cancel leaves, subject to 
183.24  applicable provisions of collective bargaining agreements and 
183.25  compensation plans. 
183.26     Sec. 2.  [CLARIFICATION OF APPROPRIATION.] 
183.27     Subdivision 1.  [PURPOSE.] This section clarifies treatment 
183.28  extended to an individual specified in Laws 2001, chapter 169, 
183.29  section 5, and is intended to eliminate any potential windfall 
183.30  to the public employees retirement association police and fire 
183.31  plan fund and the public employees retirement association 
183.32  general employees plan fund that may result from that session 
183.33  law. 
183.34     Subd. 2.  [ELIGIBILITY.] The eligible individual is an 
183.35  individual specified in Laws 2001, chapter 169, section 5, who 
183.36  was an assistant commissioner in the department of public safety 
184.1   from April 30, 1994, through May 31, 1998, while on an 
184.2   intergovernmental mobility assignment or assignments to the 
184.3   state from the city of St. Paul police department. 
184.4      Subd. 3.  [SALARY INCREMENT.] The salary increment in any 
184.5   applicable year or portion of a year is the difference between 
184.6   the salary the eligible individual in subdivision 2 received as 
184.7   assistant commissioner and the salary upon which pension 
184.8   contributions were made for that year or portion of a year. 
184.9      Subd. 4.  [BENEFIT COMPUTATIONS.] The retirement benefits, 
184.10  or disability benefits, if applicable, under the public 
184.11  employees retirement association police and fire plan and the 
184.12  public employees retirement association general plan are to be 
184.13  computed based on plan law applicable to the eligible individual 
184.14  under subdivision 2 given the eligible individual's termination 
184.15  of service date or dates, or the disability benefit accrual date 
184.16  or dates as applicable, except for inclusion of salary 
184.17  increments under subdivision 3 for purposes of determining 
184.18  average salary under sections 353.29, subdivision 2, and 
184.19  353.651, subdivision 2. 
184.20     Subd. 5.  [ANNUITY RESERVE COMPARISONS.] The executive 
184.21  director of the public employees retirement association is to 
184.22  determine the increased actuarial reserves, if any, needed to 
184.23  support the annuities from the two applicable public employees 
184.24  retirement association retirement funds on the effective date of 
184.25  retirement or disability from the applicable plans due to this 
184.26  section. 
184.27     Subd. 6.  [COMPARISON TO APPROPRIATION AMOUNTS.] The total 
184.28  amount determined under subdivision 5, if zero or positive, is 
184.29  to be subtracted from the total value of any appropriation 
184.30  received by the public employees retirement association under 
184.31  Laws 2001, chapter 169, section 5, on the date computations 
184.32  under subdivision 5 occur assuming 8.5 percent interest 
184.33  compounded annually from the date the appropriation is received 
184.34  until the computation date under subdivision 5. 
184.35     Subd. 7.  [DISPOSITION OF EXCESS.] The amount determined 
184.36  under subdivision 6, net of the value of any foregone employer 
185.1   contributions, including 8.5 percent interest compounded 
185.2   annually relating to the salary increments under subdivision 3, 
185.3   if any, is to be redeposited within 30 days following the date 
185.4   of that determination in the state's general fund. 
185.5      Subd. 8.  [INTERNAL ALLOCATIONS.] Notwithstanding any law 
185.6   to the contrary, the executive director is authorized to place 
185.7   amounts received, if any, due to Laws 2001, chapter 169, section 
185.8   5, in the public employees retirement association general plan 
185.9   fund or the public employees retirement association police and 
185.10  fire plan fund, or to allocate amounts between these funds as 
185.11  deemed appropriate.  Following the determinations required by 
185.12  this section, the executive director may again reallocate 
185.13  amounts between the two funds to reflect a reasonable allocation 
185.14  of the remaining net appropriation amount. 
185.15     Subd. 9.  [CONTRIBUTION RATIFICATION.] Contributions and 
185.16  interest paid to the association relating to the salary 
185.17  increments referred to in subdivision 3 are authorized for 
185.18  deposit in the public employees retirement association police 
185.19  and fire plan fund and are ratified. 
185.20     Sec. 3.  [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; RECISION 
185.21  OF ANNUITY APPLICATION IN FAVOR OF DISABILITY BENEFIT 
185.22  APPLICATION.] 
185.23     (a) Notwithstanding Minnesota Statutes, section 353.29, 
185.24  subdivision 7, or any other law to the contrary, an eligible 
185.25  person described in paragraph (b) may revoke an application for 
185.26  a retirement annuity from the public employees police and fire 
185.27  plan and may file an application for a disability benefit from 
185.28  the public employees police and fire plan, effective the first 
185.29  day of the month following the approval of the disability 
185.30  application under Minnesota Statutes, section 353.33, 
185.31  subdivisions 2 and 4. 
185.32     (b) An eligible person is a person who: 
185.33     (1) was born on August 6, 1949; 
185.34     (2) was employed for 27 years with the city of West St. 
185.35  Paul fire department; 
185.36     (3) terminated employment with the city of West St. Paul on 
186.1   January 31, 2001; 
186.2      (4) filed six "first report of injury" documents for back 
186.3   injuries with the city of West St. Paul between June 1984 and 
186.4   December 2000; 
186.5      (5) requested recision of his public employees police and 
186.6   fire plan retirement annuity on February 16, 2001, and tendered 
186.7   a personal check repaying the initial annuity amount; and 
186.8      (6) unsuccessfully appealed to the public employees 
186.9   retirement association board of trustees on May 10, 2001, for 
186.10  authority to rescind a retirement annuity application and to 
186.11  apply for a disability benefit. 
186.12     Sec. 4.  [MSRS-GENERAL; ACCELERATED OPTIONAL ANNUITY FORM.] 
186.13     (a) An eligible person described in paragraph (b) is 
186.14  entitled to elect from the general state employees retirement 
186.15  plan of the Minnesota state retirement system the actuarial 
186.16  equivalent accelerated optional annuity form specified in 
186.17  paragraph (c). 
186.18     (b) An eligible person is a person who:  
186.19     (1) was born on October 13, 1943; 
186.20     (2) was employed as a teacher by the Benson public schools 
186.21  from August 1967 to June 1969; 
186.22     (3) was employed as a teacher by the Richfield public 
186.23  schools from January 1, 1971, to June 1973; and 
186.24     (4) was initially employed by the office of the legislative 
186.25  auditor on October 14, 1985, and remains an employee of the 
186.26  office of the legislative auditor. 
186.27     (c) The board of directors of the Minnesota state 
186.28  retirement system shall establish an accelerated optional 
186.29  retirement annuity for the eligible person.  The accelerated 
186.30  optional retirement annuity form must replicate to the extent 
186.31  practicable the accelerated optional retirement annuity form 
186.32  that would apply to the eligible person by the teachers 
186.33  retirement association.  The optional annuity form must be the 
186.34  actuarial equivalent of the eligible person's single life 
186.35  annuity.  The accelerated optional retirement annuity form must 
186.36  be established prior to October 1, 2002.  The cost of the 
187.1   actuarial calculations of the consulting actuary retained by the 
187.2   legislative commission on pensions and retirement is payable by 
187.3   the general state employees retirement plan and the plan must be 
187.4   reimbursed by the eligible person for those costs upon 
187.5   notification by the executive director of the Minnesota state 
187.6   retirement system. 
187.7      Sec. 5.  [PRIOR OUT-OF-STATE TEACHING SERVICE CREDIT 
187.8   PURCHASE BY PUBLIC EMPLOYEES RETIREMENT ASSOCIATION MEMBER.] 
187.9      Subdivision 1.  [ELIGIBILITY.] An eligible member is a 
187.10  current active member of the public employees retirement 
187.11  association general plan who became a member of that plan on 
187.12  August 1, 1973, and who was born on December 16, 1944.  An 
187.13  eligible member may purchase allowable service credit in the 
187.14  public employees retirement association general plan as 
187.15  specified in this section. 
187.16     Subd. 2.  [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) An 
187.17  eligible member specified in subdivision 1 is eligible to 
187.18  purchase up to four years of allowable service credit from the 
187.19  general employees retirement plan of the public employees 
187.20  retirement association for out-of-state teaching service by 
187.21  making payment under Minnesota Statutes, section 356.55 or 
187.22  356.551, whichever is applicable, provided that the out-of-state 
187.23  teaching service was performed for an educational institution 
187.24  that was established and operated by another governmental 
187.25  jurisdiction and that the eligible member is not entitled to 
187.26  receive a current or deferred age and service retirement annuity 
187.27  or disability benefit and has not purchased service credit from 
187.28  another defined benefit public employee pension plan for that 
187.29  out-of-state teaching service. 
187.30     (b) For purposes of paragraph (a), "another governmental 
187.31  jurisdiction" means another state of the United States or a 
187.32  governmental subdivision of another state of the United States. 
187.33     Subd. 3.  [APPLICATION AND DOCUMENTATION.] An eligible 
187.34  member under subdivision 1 who desires to purchase service 
187.35  credit under this section must apply with the executive director 
187.36  of the public employees retirement association to make the 
188.1   purchase.  The application must include all necessary 
188.2   documentation of the eligible member's qualifications to make 
188.3   the purchase, signed written permission to allow the executive 
188.4   director to request and receive necessary verification of 
188.5   applicable facts and eligibility requirements, and any other 
188.6   relevant information that the executive director may require.  
188.7   Payment must be made before the eligible member's effective date 
188.8   of retirement or before January 1, 2003, whichever is earlier. 
188.9      Subd. 4.  [SERVICE CREDIT GRANT.] Allowable service credit 
188.10  for the purchase period must be granted by the public employees 
188.11  retirement association to the purchasing eligible member on 
188.12  receipt of the required purchase payment amount. 
188.13     Sec. 6.  [LUMP SUM PRE-1973 RETIREE POSTRETIREMENT 
188.14  ADJUSTMENT IN CERTAIN INSTANCES.] 
188.15     (a) Notwithstanding any provision of Minnesota Statutes 
188.16  2001 Supplement, section 356.866, or Minnesota Statutes, section 
188.17  356.431, to the contrary, an eligible person described in 
188.18  paragraph (b) may elect to receive the pre-1973 postretirement 
188.19  adjustment in a lump sum payment rather than as an annuity 
188.20  increase.  The election must be made before September 1, 2002, 
188.21  and is irrevocable by the annuitant or benefit recipient.  For 
188.22  the December 2002 lump sum payment, the amount must be the total 
188.23  of the monthly amounts remaining unpaid to the annuitant or the 
188.24  benefit recipient after the election. 
188.25     (b) An eligible person is a person who: 
188.26     (1) was born on December 5, 1908; 
188.27     (2) is the survivor of a deceased annuitant of the general 
188.28  employees retirement plan of the public employees retirement 
188.29  association who was born on March 22, 1904, who retired on May 
188.30  1, 1969, and who died on April 9, 1980; and 
188.31     (3) waived an annuity from the general employees retirement 
188.32  plan of the public employees retirement association in favor of 
188.33  a surviving spouse benefit on May 1, 1980. 
188.34     Sec. 7.  [PERA AND MSRS; SERVICE CREDIT PURCHASE.] 
188.35     Subdivision 1.  [ELIGIBILITY.] An eligible person is a 
188.36  person who: 
189.1      (1) served as a legislator representing Hubbard county 
189.2   during the 1961-1963 legislative session; 
189.3      (2) was employed by the department of natural resources or 
189.4   its predecessor at Itasca state park from 1964 to 1980; and 
189.5      (3) retired from the general state employees retirement 
189.6   plan of the Minnesota state retirement system on July 1, 1980, 
189.7   with ten years, six months, and nine days of service credit. 
189.8      Subd. 2.  [PERA SERVICE CREDIT PURCHASE.] Upon the receipt 
189.9   of an amount equal to the member contribution that the eligible 
189.10  person would have otherwise made in 1961 and 1962, plus annual 
189.11  compound interest on the total equivalent member contribution 
189.12  amount at the rate of 8.5 percent from January 1, 1962, to the 
189.13  date of payment, an eligible person is entitled to receive two 
189.14  years of service credit from the general employees retirement 
189.15  plan of the public employees retirement association for prior 
189.16  uncredited service as a member of the legislature. 
189.17     Subd. 3.  [MSRS SERVICE CREDIT PURCHASE.] Upon the receipt 
189.18  of an amount equal to the balance of the employee contribution 
189.19  that the eligible person would have otherwise made during the 
189.20  period 1964 to 1980 if the eligible person was employed on a 
189.21  full-time basis, plus annual compound interest on the total 
189.22  equivalent employee contribution amount at the rate of 8.5 
189.23  percent from January 1, 1972, to the date of payment, an 
189.24  eligible person is entitled to receive 5.48 years of service 
189.25  credit from the general state employees retirement plan of the 
189.26  Minnesota state retirement system for uncredited periods from 
189.27  1964 to 1980 between seasonal Itasca state park employment. 
189.28     Subd. 4.  [COMBINED SERVICE ANNUITY 
189.29  APPLICATION.] Notwithstanding the time that has elapsed since 
189.30  initial retirement, an eligible person may apply for a 
189.31  retirement annuity from the general employees retirement plan of 
189.32  the public employees retirement association and may apply for a 
189.33  recomputed retirement annuity from the general state employees 
189.34  retirement plan of the Minnesota state retirement system under 
189.35  Minnesota Statutes, section 356.30. 
189.36     Subd. 5.  [PAYMENT.] (a) The house of representatives shall 
190.1   pay the executive director of the public employees retirement 
190.2   association an amount equal to the required reserves needed to 
190.3   support the retirement annuity of an eligible person under 
190.4   subdivisions 2 and 4, reduced by the amount of the equivalent 
190.5   member contribution, plus required interest, under subdivision 
190.6   2.  Payment must be made within ten days of notification by the 
190.7   executive director that the equivalent member contribution 
190.8   amount, plus required interest, has been received and of the 
190.9   amount due.  The payment and the equivalent member contribution 
190.10  amount, plus interest, must be deposited in the public employees 
190.11  retirement fund and transferred to the Minnesota postretirement 
190.12  investment fund. 
190.13     (b) The department of natural resources shall pay the 
190.14  executive director of the Minnesota state retirement system an 
190.15  amount equal to the required reserves needed to support the 
190.16  retirement annuity of an eligible person under subdivisions 3 
190.17  and 4, reduced by the amount of the equivalent employee 
190.18  contribution, plus required interest, under subdivision 3.  
190.19  Payment must be made within ten days of notification by the 
190.20  executive director that the equivalent employee contribution 
190.21  amount, plus required interest, has been received and of the 
190.22  amount due.  The payment and the equivalent member contribution 
190.23  amount, plus interest, must be deposited in the state employees 
190.24  retirement fund and transferred to the Minnesota postretirement 
190.25  investment fund. 
190.26     Subd. 6.  [RETIREMENT ANNUITY ACCRUAL.] The retirement 
190.27  annuities payable under this section accrue on the first day of 
190.28  the month next following final enactment. 
190.29     Sec. 8.  [PRIOR SERVICE CREDIT PURCHASE REFUND.] 
190.30     (a) An eligible person may receive a refund of any prior 
190.31  military service credit purchase payment amount paid prior to 
190.32  the applicable effective date of the federal Economic Growth and 
190.33  Tax Reconciliation Act of 2001 if the eligible person transfers 
190.34  pretax funds to the teachers retirement association under 
190.35  Minnesota Statutes, section 356.55 or 356.551, whichever 
190.36  applies, sufficient to purchase the identical period of prior 
191.1   military service credit. 
191.2      (b) An eligible person is a person who: 
191.3      (1) was born on February 6, 1947; 
191.4      (2) served in the United States armed forces from March 19, 
191.5   1969, to October 22, 1970; 
191.6      (3) had credit for 27 years of service from the teachers 
191.7   retirement association as of June 30, 2000; and 
191.8      (4) purchased 1.58 years of prior military service credit 
191.9   from the teachers retirement association with the payment of 
191.10  $23,958.18 on or before April 30, 2001. 
191.11     (c) This section is contingent on the teachers retirement 
191.12  association applying for and receiving a favorable ruling from 
191.13  the federal Internal Revenue Service regarding the payment of 
191.14  this refund. 
191.15     Sec. 9.  [PERA-P&F; EXCEPTION TO DISABILITY APPLICATION 
191.16  DEADLINE.] 
191.17     (a) Notwithstanding any provision of Minnesota Statutes, 
191.18  section 353.33, subdivision 2, to the contrary, an eligible 
191.19  person described in paragraph (b) is entitled to file a 
191.20  disability benefit application with the general employees 
191.21  retirement plan of the public employees retirement association 
191.22  or with the public employees police and fire retirement plan 
191.23  and, if otherwise qualified, to receive a disability benefit 
191.24  from one or both of those retirement plans.  
191.25     (b) An eligible person is a person who: 
191.26     (1) was born on February 8, 1970; 
191.27     (2) was an employee of the city of Bagley from May 1, 1991, 
191.28  to May 31, 1992, and was covered by the coordinated program of 
191.29  the general employees retirement plan of the public employees 
191.30  retirement system; 
191.31     (3) was employed as a police officer by the police 
191.32  department of the city of Blooming Prairie from January 9, 1995, 
191.33  to May 31, 1997, and was covered by the public employees police 
191.34  and fire retirement plan; 
191.35     (4) was struck by a motor vehicle while assisting with 
191.36  traffic management at an accident site on interstate highway 35 
192.1   in January 1997 resulting in various broken bones and other 
192.2   injuries, necessitating at least eight surgeries; 
192.3      (5) was placed on medical leave by the city of Blooming 
192.4   Prairie on September 1, 1997, until January 1, 1998, upon 
192.5   termination of employment; and 
192.6      (6) failed to timely apply for disability benefits due to 
192.7   the injuries which were diagnosed to have caused significant 
192.8   depression and posttraumatic stress disorder. 
192.9      (c) This section expires one year after the date of final 
192.10  enactment. 
192.11     Sec. 10.  [EFFECTIVE DATE.] 
192.12     Sections 1 to 9 are effective on the day following final 
192.13  enactment. 
192.14                             ARTICLE 15 
192.15        COORDINATED PROGRAM OF LEGISLATORS RETIREMENT PLAN; 
192.16                     SOCIAL SECURITY REFERENDUM 
192.17     Section 1.  [3A.15] [COORDINATED PROGRAM OF LEGISLATORS 
192.18  RETIREMENT PLAN.] 
192.19     The coordinated program of the legislators retirement plan 
192.20  is created.  The provisions of sections 3A.01 to 3A.13 apply to 
192.21  the coordinated program. 
192.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
192.23  following final enactment. 
192.24     Sec. 2.  [355.629] [SECOND SOCIAL SECURITY REFERENDUM.] 
192.25     Subdivision 1.  [ELECTION OF SOCIAL SECURITY COVERAGE.] Any 
192.26  member of the legislators retirement plan established under 
192.27  chapter 3A who did not elect coverage under an agreement under 
192.28  section 218(d) of the Social Security Act as provided for in 
192.29  section 355.624 is entitled to elect future social security 
192.30  coverage and retroactive coverage for the period consistent with 
192.31  applicable federal law, in a second social security referendum.  
192.32  Any member who so elects shall become a member of the 
192.33  coordinated program of the legislators retirement plan under 
192.34  section 3A.15.  The governor shall set a date for the referendum 
192.35  and shall undertake any duties to amend the state's Social 
192.36  Security Act, section 218 agreement, with the secretary of 
193.1   health and human services. 
193.2      Subd. 2.  [PAYMENT OF RETROACTIVE SOCIAL SECURITY 
193.3   TAXES.] For any service by a legislator who is in office on the 
193.4   date of the agreement or modification of the agreement with the 
193.5   secretary of health and human services, the executive director 
193.6   of the Minnesota state retirement system shall cause to be paid 
193.7   an amount for each legislator, including an amount for 
193.8   retroactive coverage, equal to the taxes which would have been 
193.9   imposed on the legislator and state of Minnesota by the Federal 
193.10  Insurance Contributions Act had the service been covered at the 
193.11  time performed.  This payment shall be computed from the date of 
193.12  retroactive coverage to the date that deductions are first taken 
193.13  from the wages of each legislator for social security coverage.  
193.14  Before making a payment on behalf of a legislator, the executive 
193.15  director must receive from the legislator the funds necessary to 
193.16  make the payment.  Nothing in this section shall require a 
193.17  legislator to elect retroactive social security coverage. 
193.18     Subd. 3.  [DEDUCTION FROM WAGES.] A legislator who elects 
193.19  social security coverage under this section shall have a 
193.20  deduction taken from wages in an amount equal to the employer 
193.21  and employee contributions required by either subdivision 1 or 
193.22  subdivision 2. 
193.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
193.24  following final enactment. 
193.25                             ARTICLE 16 
193.26               MINNEAPOLIS POLICE OPTIONAL ANNUITIES 
193.27     Section 1.  Minnesota Statutes 2000, section 423B.09, 
193.28  subdivision 6, is amended to read: 
193.29     Subd. 6.  [OPTIONAL ANNUITIES.] A member who is retired or 
193.30  disabled on the effective date of Laws 1997, chapter 233, 
193.31  article 4, section 6, may elect an optional retirement annuity 
193.32  within 60 days of the effective date of Laws 1997, chapter 233, 
193.33  article 4, section 6, instead of the normal retirement annuity.  
193.34  A member who retires or becomes disabled after the effective 
193.35  date of Laws 1997, chapter 233, article 4, section 6, may elect 
193.36  an optional retirement annuity prior to the receipt of any 
194.1   benefits.  The optional retirement annuity may be a 50 percent, 
194.2   a 75 percent, or a 100 percent joint and survivor annuity 
194.3   without reinstatement in the event of the designated beneficiary 
194.4   predeceasing the member or a 50 percent, a 75 percent, or a 100 
194.5   percent joint and survivor annuity with reinstatement in the 
194.6   event of the designated beneficiary predeceasing the member.  
194.7   Optional retirement annuity forms must be actuarially equivalent 
194.8   to the service pension and automatic survivor coverage otherwise 
194.9   payable to the retiring member and the member's 
194.10  beneficiaries.  A member may only designate the member's spouse 
194.11  as the recipient of a joint and survivor annuity and no benefit 
194.12  or annuity may be paid to a person who does not meet the 
194.13  definition of a surviving spouse member under section 423B.01, 
194.14  subdivision 17.  Once selected, the optional annuity is 
194.15  irrevocable. 
194.16     Sec. 2.  [EFFECTIVE DATE.] 
194.17     Section 1 is effective the day following final enactment 
194.18  and applies to all joint annuity options selected by members of 
194.19  the Minneapolis police relief association.