1.1 	A bill for an act
1.2 	relating to retirement; Minnesota State Retirement System plans; clarifying 
1.3 	language; removing obsolete language; revising outdated requirements; revising 
1.4 	contribution rate revision procedures; revising disability standards and disability 
1.5 	benefit administration procedures; merging the elected state officers retirement 
1.6 	plan into the legislators retirement plan; revising pension commission standards 
1.7 	provision; revising pension plan financial report contents provision; amending 
1.8 	Minnesota Statutes 2012, sections 3.85, subdivision 10; 3A.011; 3A.03, 
1.9 	subdivision 3; 3A.07; 3A.115; 3A.13; 3A.15; 352.01, subdivision 17b; 352.03, 
1.10 	subdivision 8; 352.045, by adding subdivisions; 352.113, subdivisions 4, 6, 8, by 
1.11 	adding subdivisions; 352.22, subdivision 3; 352.955, subdivisions 1, 3; 352B.011, 
1.12 	subdivision 13; 352B.10, by adding a subdivision; 352D.04, subdivision 2; 
1.13 	356.20, subdivision 4; 356.214, subdivision 1; 356.215, subdivision 8; 356.30, 
1.14 	subdivision 3; 356.401, subdivision 3; 356.415, subdivisions 1a, 2; proposing 
1.15 	coding for new law in Minnesota Statutes, chapter 3A; repealing Minnesota 
1.16 	Statutes 2012, sections 3A.02, subdivision 3; 352.045, subdivisions 3, 4; 
1.17 	352.955, subdivision 2; 352C.001; 352C.091, subdivision 1; 352C.10.
1.18 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.19 	ARTICLE 1
1.20 	CLARIFYING LANGUAGE; REMOVING OBSOLETE LANGUAGE; 
1.21 	REVISING OUTDATED REQUIREMENTS

1.22 	Section 1. Minnesota Statutes 2012, section 352.22, subdivision 3, is amended to read:
1.23 		Subd. 3.Deferred annuity. (a) An employee who has at least three years of 
1.24 	allowable service if employed before July 1, 2010, or who has at least five years of 
1.25 	allowable service if employed after June 30, 2010, when termination occurs may elect 
1.26 	to leave the accumulated contributions in the fund and thereby be entitled to a deferred 
1.27 	retirement annuity. The annuity must be computed under the law in effect when state 
1.28 	service terminated, on the basis of the allowable service credited to the person before 
1.29 	the termination of service.
2.1 	(b) An employee on layoff or on leave of absence without pay, except a leave of 
2.2 	absence for health reasons, and who does not return to state service must have an annuity, 
2.3 	deferred annuity, or other benefit to which the employee may become entitled computed 
2.4 	under the law in effect on the employee's last working day.
2.5 	(c) No application for a deferred annuity may be made more than 60 days before 
2.6 	the time the former employee reaches the required age for entitlement to the payment of 
2.7 	the annuity. The deferred annuity begins to accrue no earlier than 60 days before the date 
2.8 	the application is filed in the office of the system, but not (1) before the date on which 
2.9 	the employee reaches the required age for entitlement to the annuity nor (2) before the 
2.10 	day following the termination of state service in a position which is not covered by the 
2.11 	retirement system.
2.12 	(d) Application for the accumulated contributions left on deposit with the fund may 
2.13 	be made at any time following the date of the termination of service.
2.14 	(e) Deferred annuities must be augmented as provided in section 352.72, subdivision 
2.15 	2.

2.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.17 	Sec. 2. Minnesota Statutes 2012, section 352.955, subdivision 1, is amended to read:
2.18 		Subdivision 1.Election to transfer prior MSRS-general service credit. (a) An 
2.19 	eligible employee described in paragraph (b) may elect to transfer service credit in the 
2.20 	general state employees retirement plan of the Minnesota State Retirement System to the 
2.21 	correctional state employees retirement plan for eligible prior correctional employment.
2.22 	(b) An eligible employee is a person who is covered by Laws 2007, chapter 134, 
2.23 	article 3, section 6, or who became eligible for retirement coverage by the correctional 
2.24 	state employees retirement plan of the Minnesota State Retirement System under Laws 
2.25 	2006, chapter 271, article 2, Laws 2007, chapter 134, article 3, or legislation implementing 
2.26 	the recommendations under section 352.91, subdivision 4a.
2.27 	(c) Eligible prior correctional employment is employment covered correctional 
2.28 	service defined in Laws 2007, chapter 134, article 3, section 6, or is employment by the 
2.29 	Department of Corrections or by the Department of Human Services that preceded the 
2.30 	effective date of the retirement coverage transfer under Laws 2006, chapter 271, article 
2.31 	2, Laws 2007, chapter 134, article 3, or legislation implementing the recommendations 
2.32 	under section 352.91, subdivision 4a by the general state employees retirement plan of 
2.33 	the Minnesota State Retirement System, is continuous service, and is certified by the 
2.34 	commissioner of corrections and the commissioner of human services, whichever applies, 
2.35 	and by the commissioner of management and budget to the executive director of the 
3.1 	Minnesota State Retirement System as service that would qualify for correctional state 
3.2 	employees retirement plan coverage under section 352.91, if the service washad been 
3.3 	rendered after the date of coverage transfer.
3.4 	(d) The election to transfer past service credit under this section must be made in 
3.5 	writing by the applicable person on a form prescribed by the executive director of the 
3.6 	Minnesota State Retirement System and must be filed with the executive director of the 
3.7 	Minnesota State Retirement System on or before (1) January 1, 2008, or the one year 
3.8 	anniversary of the coverage transfer, whichever is later, or (2) the date of the eligible 
3.9 	employee's termination of state employment, whichever is earlier.

3.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

3.11 	Sec. 3. Minnesota Statutes 2012, section 352.955, subdivision 3, is amended to read:
3.12 		Subd. 3.Payment of additional equivalent contributions; post-June 30, 2007, 
3.13 	coverage transfers. (a) An eligible employee who is transferred to plan coverage after 
3.14 	June 30, 2007, and who elects to transfer past service credit under this section must pay 
3.15 	an additional member contribution for that prior service period. The additional member 
3.16 	contribution is the amount computed under paragraph (b), plus the greater of the amount 
3.17 	computed under paragraph (c), or 40 percent of the unfunded actuarial accrued liability 
3.18 	attributable to the past service credit transfer.
3.19 	(b) The executive director shall compute, for the most recent 12 months of service 
3.20 	credit eligible for transfer, or for the entire period eligible for transfer if less than 12 
3.21 	months, the difference between the employee contribution rate or rates for the general state 
3.22 	employees retirement plan and the employee contribution rate or rates for the correctional 
3.23 	state employees retirement plan applied to the eligible employee's salary during that 
3.24 	transfer period, plus compound interest at a monthly rate of 0.71 percent.
3.25 	(c) The executive director shall compute, for any service credit being transferred 
3.26 	on behalf of the eligible employee and not included under paragraph (b), the difference 
3.27 	between the employee contribution rate or rates for the general state employees retirement 
3.28 	plan and the employee contribution rate or rates for the correctional state employees 
3.29 	retirement plan applied to the eligible employee's salary during that transfer period, plus 
3.30 	compound interest at a monthly rate of 0.71 percent.
3.31 	(d) The executive director shall compute an amount using the process specified in 
3.32 	paragraph (b), but based on differences in employer contribution rates between the general 
3.33 	state employees retirement plan and the correctional state employees retirement plan 
3.34 	rather than employee contribution rates.
4.1 	(e) The executive director shall compute an amount using the process specified in 
4.2 	paragraph (c), but based on differences in employer contribution rates between the general 
4.3 	state employees retirement plan and the correctional state employees retirement plan 
4.4 	rather than employee contribution rates.
4.5 	(f) The additional equivalent member contribution under this subdivision must be 
4.6 	paid in a lump sum. Payment must accompany the election to transfer the prior service 
4.7 	credit. No transfer election or additional equivalent member contribution payment may be 
4.8 	made by a person or accepted by the executive director after the one year anniversary date 
4.9 	of the effective date of the retirement coverage transfer, or the date on which the eligible 
4.10 	employee terminates state employment, whichever is earlier.
4.11 	(g) If an eligible employee elects to transfer past service credit under this section 
4.12 	and pays the additional equivalent member contribution amount under paragraph (a), the 
4.13 	applicable department shall pay an additional equivalent employer contribution amount. 
4.14 	The additional employer contribution is the amount computed under paragraph (d), plus 
4.15 	the greater of the amount computed under paragraph (e), or 60 percent of the unfunded 
4.16 	actuarial accrued liability attributable to the past service credit transfer.
4.17 	(h) The unfunded actuarial accrued liability attributable to the past service credit 
4.18 	transfer is the present value of the benefit obtained by the transfer of the service credit 
4.19 	to the correctional state employees retirement plan reduced by the amount of the asset 
4.20 	transfer under subdivision 4, by the amount of the member contribution equivalent 
4.21 	payment computed under paragraph (b), and by the amount of the employer contribution 
4.22 	equivalent payment computed under paragraph (d).
4.23 	(i) The additional equivalent employer contribution under this subdivision must be 
4.24 	paid in a lump sum and must be paid within 30 days of the date on which the executive 
4.25 	director of the Minnesota State Retirement System certifies to the applicable department 
4.26 	that the employee paid the additional equivalent member contribution.

4.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

4.28 	Sec. 4. Minnesota Statutes 2012, section 352B.011, subdivision 13, is amended to read:
4.29 		Subd. 13.Surviving spouse. "Surviving spouse" means a member's or former 
4.30 	member's legally married spouse who resided with the member or former member at the 
4.31 	time of death and was married to the member or former member, for a period of at least 
4.32 	one year, during or before the time of membership.

4.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

5.1 	Sec. 5.  REPEALER.
 5.2 	Minnesota Statutes 2012, section 352.955, subdivision 2, is repealed.

5.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

5.4 	ARTICLE 2
5.5 	CONTRIBUTION RATE REVISION PROCEDURES: MSRS GENERAL, 
5.6 	CORRECTIONAL, AND STATE PATROL PLANS

5.7 	Section 1. Minnesota Statutes 2012, section 352.045, is amended by adding a 
5.8 	subdivision to read:
5.9 		Subd. 3a.Contribution rate revision; general state employees retirement plan
 5.10 	(a) Notwithstanding the contribution rates stated in plan law, the employee and employer 
5.11 	contribution rates for the general state employees retirement plan must be adjusted:
5.12 	(1) if the regular actuarial valuation under section 356.215 of the plan indicates that 
5.13 	there is a contribution sufficiency greater than one percent of covered payroll and that the 
5.14 	sufficiency has existed for at least two consecutive years, the employee and employer 
5.15 	contribution rates must be decreased as determined under paragraph (b) to a level such 
5.16 	that the sufficiency is no greater than one percent of covered payroll based on the most 
5.17 	recent actuarial valuation; or
5.18 	(2) if the regular actuarial valuation under section 352.215 of the plan indicates that 
5.19 	there is a contribution deficiency equal to or greater than 0.5 percent of covered payroll 
5.20 	and that the deficiency has existed for at least two consecutive years, the employee and 
5.21 	employer contribution rates must be increased as determined under paragraph (c) to a level 
5.22 	such that no deficiency exists based on the most recent actuarial valuation.
5.23 	(b) If the actuarially required contribution of the plan is less than the total support 
5.24 	provided by the combined employee and employer contribution rates by more than one 
5.25 	percent of covered payroll, the plan employee and employer contribution rates must be 
5.26 	decreased incrementally over one or more years by no more than 0.25 percent of pay 
5.27 	each for employee and employer contribution rates to a level such that there remains a 
5.28 	contribution sufficiency of at least one percent of covered payroll. No contribution rate 
5.29 	decrease may be made until at least two years have elapsed since any adjustment under 
5.30 	this paragraph has been fully implemented.
5.31 	(c) If the actuarially required contribution exceeds the total support provided by the 
5.32 	employee and employer contribution rates, the employee and employer contribution rates 
5.33 	must be increased equally to eliminate that contribution deficiency. If the contribution 
5.34 	deficiency is:
6.1 	(1) less than two percent, the incremental increase may be up to 0.25 percent each 
6.2 	for the employee and employer contribution rates;
6.3 	(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase 
6.4 	may be up to 0.5 percent each for the employee and employer contribution rates; or
6.5 	(3) greater than four percent, the incremental increase may be up to 0.75 percent 
6.6 	each for the employee and employer contribution.
6.7 	(d) Any recommended adjustment to the contribution rates must be reported to 
6.8 	the chair and the executive director of the Legislative Commission on Pensions and 
6.9 	Retirement by January 15 following receipt of the most recent annual actuarial valuation 
6.10 	prepared under section 356.215. The report must include draft legislation to revise the 
6.11 	employee and employer contributions stated in plan law. If the Legislative Commission 
6.12 	on Pensions and Retirement does not recommend against the rate change or does not 
6.13 	recommend a modification in the rate change, the recommended adjustment becomes 
6.14 	effective on the first day of the first full payroll period in the fiscal year following receipt 
6.15 	of the most recent actuarial valuation that gave rise to the adjustment.
6.16 	(e) A contribution sufficiency of up to one percent of covered payroll must be held 
6.17 	in reserve to be used to offset any future actuarially required contributions that are more 
6.18 	than the total combined employee and employer contributions.
6.19 	(f) Before any reduction in contributions to eliminate a sufficiency in excess of one 
6.20 	percent of covered pay may be recommended, the executive director must review any 
6.21 	need for a change in actuarial assumptions, as recommended by the actuary retained under 
6.22 	section 356.214 in the most recent experience study of the general employees retirement 
6.23 	plan prepared under section 356.215 and the standards for actuarial work promulgated by 
6.24 	the Legislative Commission on Pensions and Retirement that may result in an increase 
6.25 	in the actuarially required contribution and must report to the Legislative Commission 
6.26 	on Pensions and Retirement any recommendation by the board to use the sufficiency 
6.27 	exceeding one percent of covered payroll to offset the impact of an actuarial assumption 
6.28 	change recommended by the actuary retained under section 356.214, subdivision 1, and 
6.29 	reviewed by the actuary retained by the commission under section 356.214, subdivision 4.
6.30 	(g) No contribution sufficiency in excess of one percent of covered pay may be 
6.31 	proposed to be used to increase benefits, and no benefit increase may be proposed that 
6.32 	would initiate an automatic adjustment to increase contributions under this subdivision. 
6.33 	Any proposed benefit improvement must include a recommendation, prepared by the 
6.34 	actuary retained under section 356.214, subdivision 1, and reviewed by the actuary 
6.35 	retained by the Legislative Commission on Pensions and Retirement as provided under 
6.36 	section 356.214, subdivision 4, on how the benefit modification will be funded.

7.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

7.2 	Sec. 2. Minnesota Statutes 2012, section 352.045, is amended by adding a subdivision 
7.3 	to read:
7.4 		Subd. 3b.Contribution rate revision; correctional state employees retirement 
7.5 	plan and State Patrol retirement plan. (a) Subdivision 3a applies to the correctional 
7.6 	state employees retirement plan under this chapter and to the State Patrol retirement plan 
7.7 	established under chapter 352B, except as stated in this subdivision.
7.8 	(b) Any limitations on the amount of contribution rate changes stated in subdivision 
7.9 	3a apply only to the amount of the employee contribution revision. The employer 
7.10 	contribution for the correctional state employees retirement plan or the State Patrol 
7.11 	retirement plan, whichever is applicable, must be adjusted so that the employer 
7.12 	contribution is equal to 60 percent of the sum of employee plus employer contributions.
7.13 	(c) For the State Patrol retirement plan, a contribution sufficiency of up to two 
7.14 	percent of covered payroll, rather than one percent, may be held in reserves without taking 
7.15 	action to reduce employee and employer contributions.

7.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

7.17 	Sec. 3. Minnesota Statutes 2012, section 352D.04, subdivision 2, is amended to read:
7.18 		Subd. 2.Contribution rates. (a) The money used to purchase shares under this 
7.19 	section is the employee and employer contributions provided in this subdivision.
7.20 	(b) The employee contribution is an amount equal to the percent of salary specified 
7.21 	in section 352.04, subdivision 2, or 352.045, subdivision 3 3a.
7.22 	(c) The employer contribution is an amount equal to six percent of salary.
7.23 	(d) For members of the legislature, the contributions under this subdivision also must 
7.24 	be made on per diem payments received during a regular or special legislative session, but 
7.25 	may not be made on per diem payments received outside of a regular or special legislative 
7.26 	session, on the additional compensation attributable to a leadership position under section 
7.27 	3.099, subdivision 3, living expense payments under section 3.101, or special session 
7.28 	living expense payments under section 3.103.
7.29 	(e) For a judge who is a member of the unclassified plan under section 352D.02, 
7.30 	subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent 
7.31 	of salary, and there is no employer contribution.
7.32 	(f) These contributions must be made in the manner provided in section 352.04, 
7.33 	subdivisions 4, 5, and 6.

8.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

8.2 	Sec. 4.  REPEALER.
 8.3 	Minnesota Statutes 2012, section 352.045, subdivisions 3 and 4, are repealed.

8.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

8.5 	ARTICLE 3
8.6 	REVISING COMMISSION STANDARDS AND FINANCIAL REPORT 
8.7 	CONTENTS PROVISIONS

8.8 	Section 1. Minnesota Statutes 2012, section 3.85, subdivision 10, is amended to read:
8.9 		Subd. 10.Standards for pension valuations and cost estimates. The commission 
8.10 	shall adopt standards prescribing specific detailed methods to calculate, evaluate, and 
8.11 	display current and proposed law liabilities, costs, and actuarial equivalents of all public 
8.12 	employee pension plans in Minnesota. These standards shall be consistent with chapter 
8.13 	356 and be updated annually. At a minimum, the standards must notshall contain a 
8.14 	valuation requirementrequirements that is inconsistentcomply with generally accepted 
8.15 	accounting principles applicable to government pension plans. The standards may include 
8.16 	additional financial, funding, or valuation requirements that are not required under 
8.17 	generally accepted accounting principles applicable to government pension plans.

8.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

8.19 	Sec. 2. Minnesota Statutes 2012, section 356.20, subdivision 4, is amended to read:
8.20 		Subd. 4.Contents of financial report. (a) The financial report required by 
8.21 	this section must contain financial statements and disclosures that indicate the financial 
8.22 	operations and position of the retirement plan and fund. The report must conform with 
8.23 	generally accepted governmental accounting principles, applied on a consistent basis. The 
8.24 	report must be audited.
8.25 	(b) The report must include, as part of its exhibits or its footnotes, an actuarial 
8.26 	disclosure item based ona statement that the actuarial valuation calculations prepared 
8.27 	by the actuary retained under section 356.214 or by the actuary retained by the 
8.28 	retirement fund or plan, whichever applies, according tocomply with applicable actuarial 
8.29 	requirements enumerated in section 356.215, and specified in the most recent standards 
8.30 	for actuarial work adopted by the Legislative Commission on Pensions and Retirement. 
8.31 	The actuarial value of assets, the actuarial accrued liabilities, including accrued reserves,
8.32 	 and the unfunded actuarial accrued liability of the fund or plan must be disclosed. The 
9.1 	disclosure itemreport must contain a declarationcertification by the actuary retained 
9.2 	under section 356.214 or the actuary retained by the fund or plan, whichever applies, 
9.3 	specifying that the required reserves for any retirement, disability, or survivornormal 
9.4 	cost and the actuarial accrued liabilities for all benefits provided under a benefit formula
9.5 	 are computed in accordance with the entry age actuarial cost method and in accordance 
9.6 	with the most recent applicable standards for actuarial work adopted by the Legislative 
9.7 	Commission on Pensions and Retirement.
9.8 	(c) The report must contain an itemized exhibit describing the administrative 
9.9 	expenses of the plan, including, but not limited to, the following items, classified on a 
9.10 	consistent basis from year to year, and with any further meaningful detail:
9.11 	(1) personnel expenses;
9.12 	(2) communication-related expenses;
9.13 	(3) office building and maintenance expenses;
9.14 	(4) professional services fees; and
9.15 	(5) other expenses.
9.16 	(d) The report must contain an itemized exhibit describing the investment expenses 
9.17 	of the plan, including, but not limited to, the following items, classified on a consistent 
9.18 	basis from year to year, and with any further meaningful detail:
9.19 	(1) internal investment-related expenses; and
9.20 	(2) external investment-related expenses.
9.21 	(e) Any additional statements or exhibits or more detailed or subdivided itemization 
9.22 	of a disclosure item that will enable the management of the plan to portray a true 
9.23 	interpretation of the plan's financial condition must be included in the additional 
9.24 	statements or exhibits.

9.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

9.26 	ARTICLE 4
9.27 	DISABILITY BENEFIT ADMINISTRATION REVISIONS

9.28 	Section 1. Minnesota Statutes 2012, section 352.01, subdivision 17b, is amended to read:
9.29 		Subd. 17b.Duty disability, physical or psychological. "Duty disability, physical 
9.30 	or psychological," for a correctional employee, means an occupational disability that is 
9.31 	the direct result of an injury incurred during, or a disease arising out of, the performance 
9.32 	of normal duties or the performance of less frequent duties either of which arepresent 
9.33 	inherent dangers specific to the correctional employee.

9.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.1 	Sec. 2. Minnesota Statutes 2012, section 352.03, subdivision 8, is amended to read:
10.2 		Subd. 8.Medical adviser. The state commissioner of health or otherexecutive 
10.3 	director may contract with an accredited independent organization specializing in 
10.4 	disability determinations, licensed physicianphysicians, or physicians on the staff of the 
10.5 	commissioner of health as designated by the commissioner may designate shall, to be the 
10.6 	medical adviser ofto the director system.

10.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.8 	Sec. 3. Minnesota Statutes 2012, section 352.113, subdivision 4, is amended to read:
10.9 		Subd. 4.Medical or psychological examinations; authorization for payment of 
10.10 	benefit. (a) Any physician, psychologist, chiropractor, or physician assistant providing 
10.11 	any service specified in this section must be licensed.
10.12 	(b) An applicant shall provide medical, chiropractic, or psychological a detailed 
10.13 	report signed by a physician, and at least one additional report signed by a physician, 
10.14 	chiropractor, psychologist, or physician assistant with  evidence to support an application 
10.15 	for total and permanent disability.
10.16 	(b) The director shall have the employee examined by at least one additional 
10.17 	licensed chiropractor, physician, or psychologist designated by the medical adviser. The 
10.18 	chiropractors, physicians, or psychologists shall make written reports to the director 
10.19 	concerning the employee's disability includingmust include an expert opinions as to
10.20 	opinion regarding whether the employee is permanently and totally disabled within 
10.21 	the meaning of section 352.01, subdivision 17, and that the disability arose before the 
10.22 	employee was placed on any paid or unpaid leave of absence or terminated public service.
10.23 	(c) If there is medical evidence that supports the expectation that at some point 
10.24 	the person applying for the disability benefit will no longer be disabled, the decision 
10.25 	granting the disability benefit may provide for a termination date upon which the total and 
10.26 	permanent disability can be expected to no longer exist. When a termination date is part 
10.27 	of the decision granting benefits, prior to the benefit termination the executive director 
10.28 	shall review any evidence provided by the disabled employee to show that the disabling 
10.29 	condition for which benefits were initially granted continues. If the benefits cease, the 
10.30 	disabled employee may follow the appeal procedures described in section 356.96 or may 
10.31 	reapply for disability benefits using the process described in this subdivision.
10.32 	(d) Any claim to disability must be supported by a report from the employer 
10.33 	indicating that there is no available work that the employee can perform with the disabling 
10.34 	condition and that all reasonable accommodations have been considered. Upon request of 
10.35 	the executive director, an employer shall provide evidence of the steps the employer has 
11.1 	taken to attempt to provide reasonable accommodations and continued employment to 
11.2 	the claimant.
11.3 	(c)(e) The director shall also obtain written certification from the employer 
11.4 	stating whether the employment has ceased or whether the employee is on sick leave of 
11.5 	absence because of a disability that will prevent further service to the employer and as a 
11.6 	consequencethat the employee is not entitled to compensation from the employer.
11.7 	(d)(f) The medical adviser shall consider the reports of the physicians, physician 
11.8 	assistants, psychologists, and chiropractors and any other evidence supplied by the 
11.9 	employee or other interested parties. If the medical adviser finds the employee totally and 
11.10 	permanently disabled, the adviser shall make appropriate recommendation to the director 
11.11 	in writing together with the date from which the employee has been totally disabled. The 
11.12 	director shall then determine if the disability occurred within 18 months of filing the 
11.13 	application, while still in the employment of the state, and the propriety of authorizing 
11.14 	payment of a disability benefit as provided in this section.
11.15 	(e)(g) A terminated employee may apply for a disability benefit within 18 months of 
11.16 	termination as long as the disability occurred while in the employment of the state. The 
11.17 	fact that an employee is placed on leave of absence without compensation because of 
11.18 	disability does not bar that employee from receiving a disability benefit.
11.19 	(f)(h) Unless the payment of a disability benefit has terminated because the 
11.20 	employee is no longer totally disabled, or because the employee has reached normal 
11.21 	retirement age as provided in this section, the disability benefit must cease with the last 
11.22 	payment received by the disabled employee or which had accrued during the lifetime of the 
11.23 	employee unless there is a spouse surviving. In that event, the surviving spouse is entitled 
11.24 	to the disability benefit for the calendar month in which the disabled employee died.

11.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

11.26 	Sec. 4. Minnesota Statutes 2012, section 352.113, is amended by adding a subdivision 
11.27 	to read:
11.28 		Subd. 4b.Independent medical examination or vocational rehabilitation 
11.29 	counseling. Any individual applying for or receiving disability benefits shall submit 
11.30 	to an independent medical examination or an assessment by a certified rehabilitation 
11.31 	counselor if requested by the executive director or designee. The examination must be 
11.32 	paid for by the system.

11.33 	Sec. 5. Minnesota Statutes 2012, section 352.113, subdivision 6, is amended to read:
12.1 		Subd. 6.Regular medical or psychological examinations. At least once each 
12.2 	year during the first five years following the allowance of a disability benefit to any 
12.3 	employee, and at least once in every three-year period thereafter, the director may require 
12.4 	any disabled employee to undergo aprovide medical, chiropractic, or psychological 
12.5 	examination evidence to support the continuation of the total and permanent disability. 
12.6 	The examination must be made at the place of residence of the employee, or at any place 
12.7 	mutually agreed upon,evidence must be in a form and manner prescribed by the executive 
12.8 	director for review by an expert or experts designated by the medical adviser and engaged 
12.9 	by the director. If any examination indicatesthe medical information provided to the 
12.10 	medical adviser indicates that the employee is no longer permanently and totally disabled, 
12.11 	or is engaged in or can engage in a gainful occupation, payments of the disability benefit 
12.12 	by the fund must be discontinued. The payments must be discontinued as soon as the 
12.13 	employee is reinstated to the payroll following a sick leave of absence, but in no case may 
12.14 	payment be made for more than 60 days after the medical adviser finds that the employee 
12.15 	is no longer permanently and totally disabled.

12.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

12.17 	Sec. 6. Minnesota Statutes 2012, section 352.113, subdivision 8, is amended to read:
12.18 		Subd. 8.Refusal of examination. If a disabled employeeperson applying for a 
12.19 	disability benefit refuses to submit to an experta medical or psychological examination, 
12.20 	the disability application shall be rejected. If a disability benefit recipient refuses to submit 
12.21 	to a medical or psychological examination as required, payments by the fund must be 
12.22 	discontinued and the director shall revoke all rights of the employee in any disability benefit.

12.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

12.24 	Sec. 7. Minnesota Statutes 2012, section 352.113, is amended by adding a subdivision 
12.25 	to read:
12.26 		Subd. 14.Disabilitant earnings reports. Disability benefit recipients must report 
12.27 	all earnings from reemployment and income from workers' compensation to the system 
12.28 	annually by May 15 in a format prescribed by the executive director. If the form is not 
12.29 	submitted by June 15, benefits must be suspended effective July 1. If the form deemed 
12.30 	acceptable by the executive director is received after the June 15 deadline, benefits shall 
12.31 	be reinstated retroactive to July 1.

12.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

13.1 	Sec. 8. Minnesota Statutes 2012, section 352B.10, is amended by adding a subdivision 
13.2 	to read:
13.3 		Subd. 7.Disabilitant earnings reports. Disability benefit recipients must report 
13.4 	all earnings from reemployment and income from workers' compensation to the system 
13.5 	annually by May 15 in a format prescribed by the executive director. If the form is not 
13.6 	submitted by June 15, benefits must be suspended effective July 1. If the form deemed 
13.7 	acceptable by the executive director is received after the June 15 deadline, benefits shall 
13.8 	be reinstated retroactive to July 1.

13.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

13.10 	ARTICLE 5
13.11 	MERGER OF ELECTED STATE OFFICERS RETIREMENT PLAN INTO 
13.12 	THE LEGISLATORS RETIREMENT PLAN

13.13 	Section 1. Minnesota Statutes 2012, section 3A.011, is amended to read:
13.14 	3A.011 ADMINISTRATION OF PLAN PLANS.
13.15 	The executive director and the board of directors of the Minnesota State Retirement 
13.16 	System shall administer the legislators retirement planplans specified in accordancethis 
13.17 	chapter consistent with this chapter and chapterchapters 245 and 356A.

13.18 	EFFECTIVE DATE. This section is effective July 1, 2013.

13.19 	Sec. 2. Minnesota Statutes 2012, section 3A.03, subdivision 3, is amended to read:
13.20 		Subd. 3.Legislators retirement fund. (a) The legislators retirement fund, a special 
13.21 	retirement fund, is created within the state treasury and must be credited with assets equal 
13.22 	to the participation of the legislators retirement plan in the Minnesota postretirement 
13.23 	investment fund as of June 30, 2009, and any investment proceeds on those assets.
13.24 	(b) The payment of annuities under section 3A.115, paragraph (b), is appropriated 
13.25 	from the legislators retirement fund.

13.26 	EFFECTIVE DATE. This section is effective July 1, 2013.

13.27 	Sec. 3. Minnesota Statutes 2012, section 3A.07, is amended to read:
13.28 	3A.07 APPLICATION.
13.29 	(a) Except as provided in paragraph (b) and section 3A.17, this chapter applies 
13.30 	to members of the legislature in service after July 1, 1965, who otherwise meet the 
13.31 	requirements of this chapter.
14.1 	(b) Members of the legislature who were elected for the first time after June 30, 
14.2 	1997, or members of the legislature who were elected before July 1, 1997, and who, after 
14.3 	July 1, 1998, elect not to be members of the plan established by this chapter are covered 
14.4 	by the unclassified employees retirement program governed by chapter 352D.
14.5 	(c) The post-July 1, 1998, coverage election under paragraph (b) is irrevocable 
14.6 	and must be made on a form prescribed by the director. The second chance referendum 
14.7 	election under Laws 2002, chapter 392, article 15, also is irrevocable.

14.8 	EFFECTIVE DATE. This section is effective July 1, 2013.

14.9 	Sec. 4. Minnesota Statutes 2012, section 3A.115, is amended to read:
14.10 	3A.115 RETIREMENT ALLOWANCE APPROPRIATION; 
14.11 	POSTRETIREMENT ADJUSTMENT.
14.12 	(a) The amount necessary to fund the retirement allowance granted under this 
14.13 	chapter to a former legislator retiring after June 30, 2003, or to that legislator's survivor, 
14.14 	and the retirement allowance granted under section 3A.17 to a former constitutional 
14.15 	officer or the survivor of that constitutional officer is appropriated from the general fund to 
14.16 	the director to pay pension obligations due to the retiree.
14.17 	(b) The amount necessary to fund the retirement allowance granted under this 
14.18 	chapter to a former legislator retiring before July 1, 2003, must be paid from the legislators 
14.19 	retirement fund created under section 3A.03, subdivision 3, until the assets of the fund 
14.20 	are exhausted and at that time, the amount necessary to fund the retirement allowances 
14.21 	under this paragraph is appropriated from the general fund to the director to pay pension 
14.22 	obligations to the retiree and survivor.
14.23 	(c) Retirement allowances payable to retired legislators and their survivors under 
14.24 	this chapter must be adjusted as provided in sections 3A.02, subdivision 6, and 356.415.

14.25 	EFFECTIVE DATE. This section is effective July 1, 2013.

14.26 	Sec. 5. Minnesota Statutes 2012, section 3A.13, is amended to read:
14.27 	3A.13 EXEMPTION FROM PROCESS AND TAXATION; HEALTH 
14.28 	PREMIUM DEDUCTION.
14.29 	(a) The provisions of section 356.401 apply to the legislators retirement plan plans 
14.30 	specified in this chapter.
14.31 	(b) The executive director of the Minnesota State Retirement System must, at the 
14.32 	request of a retired legislator or constitutional officer who is enrolled in a health insurance 
14.33 	plan covering state employees, deduct the person's health insurance premiums from the 
15.1 	person's annuity and transfer the amount of the premium to a health insurance carrier 
15.2 	covering state employees.

15.3 	EFFECTIVE DATE. This section is effective July 1, 2013.

15.4 	Sec. 6. Minnesota Statutes 2012, section 3A.15, is amended to read:
15.5 	3A.15 COORDINATED PROGRAMPROGRAMS OF THE LEGISLATORS 
15.6 	RETIREMENT PLAN.
15.7 	The coordinated program of the legislators retirement plan is created. The provisions 
15.8 	of sections 3A.01 to 3A.13 apply to the coordinated program and basic programs of the 
15.9 	legislators retirement plan.

15.10 	EFFECTIVE DATE. This section is effective July 1, 2013.
15.11 	SPECIAL COVERAGE; CONSTITUTIONAL OFFICERS

15.12 	Sec. 7. [3A.17] CONSTITUTIONAL OFFICERS.
15.13 		Subdivision 1.Application. (a) This section specifies the retirement plan applicable 
15.14 	to a former constitutional officer who was first elected to a constitutional office after July 
15.15 	1, 1967, and before July 1, 1997. The plan includes the applicable portions of chapter 
15.16 	352C and chapter 356 in effect on the date on which the person terminated active service 
15.17 	as a constitutional officer.
15.18 	(b) Nothing in this section, this act, or Laws 2006, chapter 271, article 10, section 
15.19 	33, subdivision 2, is intended to increase or reduce the benefits of former constitutional 
15.20 	officers or their survivors or to adversely modify their eligibility for benefits in effect 
15.21 	as of June 30, 2012.
15.22 		Subd. 2.Benefit adjustments. Retirement allowances payable to retired 
15.23 	constitutional officers and surviving spouse benefits payable must be adjusted under 
15.24 	section 356.415.

15.25 	EFFECTIVE DATE. This section is effective July 1, 2013.

15.26 	Sec. 8. Minnesota Statutes 2012, section 356.214, subdivision 1, is amended to read:
15.27 		Subdivision 1.Actuary retention. (a) The governing board or managing or 
15.28 	administrative official of each public pension plan and retirement fund or plan enumerated 
15.29 	in paragraph (b) shall contract with an established actuarial consulting firm to conduct 
15.30 	annual actuarial valuations and related services. The principal from the actuarial 
16.1 	consulting firm on the contract must be an approved actuary under section 356.215, 
16.2 	subdivision 1, paragraph (c).
16.3 	(b) Actuarial services must include the preparation of actuarial valuations and 
16.4 	related actuarial work for the following retirement plans:
16.5 	(1) the teachers retirement plan, Teachers Retirement Association;
16.6 	(2) the general state employees retirement plan, Minnesota State Retirement System;
16.7 	(3) the correctional employees retirement plan, Minnesota State Retirement System;
16.8 	(4) the State Patrol retirement plan, Minnesota State Retirement System;
16.9 	(5) the judges retirement plan, Minnesota State Retirement System;
16.10 	(6) the general employees retirement plan, Public Employees Retirement 
16.11 	Association, including the MERF division;
16.12 	(7) the public employees police and fire plan, Public Employees Retirement 
16.13 	Association;
16.14 	(8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund 
16.15 	Association;
16.16 	(9) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund 
16.17 	Association;
16.18 	(10) the legislators retirement plan, Minnesota State Retirement System; and
16.19 	(11) the elective state officers retirement plan, Minnesota State Retirement System; 
16.20 	and
16.21 	(12)(11) the local government correctional service retirement plan, Public 
16.22 	Employees Retirement Association.
16.23 	(c) The actuarial valuation for the legislators retirement plan must include a separate 
16.24 	calculation of total plan actuarial accrued liabilities due to constitutional officer coverage 
16.25 	under section 3A.17.
16.26 	(c)(d) The contracts must require completion of the annual actuarial valuation 
16.27 	calculations on a fiscal year basis, with the contents of the actuarial valuation calculations 
16.28 	as specified in section 356.215, and in conformity with the standards for actuarial work 
16.29 	adopted by the Legislative Commission on Pensions and Retirement.
16.30 	The contracts must require completion of annual experience data collection and 
16.31 	processing and a quadrennial published experience study for the plans listed in paragraph 
16.32 	(b), clauses (1), (2), and (6), as provided for in the standards for actuarial work adopted by 
16.33 	the commission. The experience data collection, processing, and analysis must evaluate 
16.34 	the following:
16.35 	(1) individual salary progression;
16.36 	(2) the rate of return on investments based on the current asset value;
17.1 	(3) payroll growth;
17.2 	(4) mortality;
17.3 	(5) retirement age;
17.4 	(6) withdrawal; and
17.5 	(7) disablement.
17.6 	(d)(e) The actuary shall annually prepare a report to the governing or managing 
17.7 	board or administrative official and the legislature, summarizing the results of the actuarial 
17.8 	valuation calculations. The actuary shall include with the report any recommendations 
17.9 	concerning the appropriateness of the support rates to achieve proper funding of 
17.10 	the retirement plans by the required funding dates. The actuary shall, as part of the 
17.11 	quadrennial experience study, include recommendations on the appropriateness of the 
17.12 	actuarial valuation assumptions required for evaluation in the study.
17.13 	(e)(f) If the actuarial gain and loss analysis in the actuarial valuation calculations 
17.14 	indicates a persistent pattern of sizable gains or losses, the governing or managing board 
17.15 	or administrative official shall direct the actuary to prepare a special experience study for 
17.16 	a plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), (10), (11), or (12), in the 
17.17 	manner provided for in the standards for actuarial work adopted by the commission.

17.18 	Sec. 9. Minnesota Statutes 2012, section 356.215, subdivision 8, is amended to read:
17.19 		Subd. 8.Interest and salary assumptions. (a) The actuarial valuation must use 
17.20 	the applicable following preretirement interest assumption and the applicable following 
17.21 	postretirement interest assumption:
17.22 	(1) select and ultimate interest rate assumption

17.23
17.24
17.25
17.26	plan
	ultimate 
preretirement 
interest rate 
assumption
	ultimate 
postretirement 
interest rate 
assumption
	
17.27	general state employees retirement plan
	 8.5%
	 6.0%
	
17.28	correctional state employees retirement plan
	8.5
	6.0
	
17.29	State Patrol retirement plan
	8.5
	6.0
	
17.30
17.31
17.32	legislators retirement plan, and for the 
constitutional officers calculation of total plan 
liabilities
	 0.0 
	-2.0 until June 30, 
2040, and -2.5 after 
June 30, 20400.0
	
17.33
17.34
17.35	elective state officers retirement plan
	0.0
	-2.0 until June 30, 
2040, and -2.5 after 
June 30, 2040 
	
17.36	judges retirement plan
	8.5
	6.0
	
17.37	general public employees retirement plan
	8.5
	6.0
	
17.38	public employees police and fire retirement plan
	8.5
	6.0
	
17.39
17.40	local government correctional service 
retirement plan
	8.5
	6.0
	
18.1	teachers retirement plan
	8.5
	6.0
	
18.2	Duluth teachers retirement plan
	8.5
	8.5
	
18.3	St. Paul teachers retirement plan
	8.5
	8.5
	
18.4 	Except for the legislators retirement plan and the elective stateconstitutional officers 
18.5 	retirement plan calculation of total plan liabilities, the select preretirement interest rate 
18.6 	assumption for the period after June 30, 2012, through June 30, 2017, is 8.0 percent. 
18.7 	Except for the legislators retirement plan and the elective stateconstitutional officers 
18.8 	retirement plan calculation of total plan liabilities, the select postretirement interest rate 
18.9 	assumption for the period after June 30, 2012, through June 30, 2017, is 5.5 percent, 
18.10 	except for the Duluth teachers retirement plan and the St. Paul teachers retirement plan, 
18.11 	each with a select postretirement interest rate assumption for the period after June 30, 
18.12 	2012, through June 30, 2017, of 8.0 percent.
18.13 	(2) single rate preretirement and postretirement interest rate assumption

18.14
18.15	plan
	interest rate 
assumption
		
18.16	Bloomington Fire Department Relief Association
	6.0
		
18.17
18.18	local monthly benefit volunteer firefighters relief 
associations
	5.0
		
18.19 	(b) The actuarial valuation must use the applicable following single rate future salary 
18.20 	increase assumption, the applicable following modified single rate future salary increase 
18.21 	assumption, or the applicable following graded rate future salary increase assumption:
18.22 	(1) single rate future salary increase assumption

18.23	plan
	future salary increase assumption
	
18.24	legislators retirement plan
		5.0%
	
18.25	judges retirement plan
		3.0 
	
18.26
18.27	Bloomington Fire Department Relief 
Association
		4.0
	
18.28 	(2) age-related future salary increase age-related select and ultimate future salary 
18.29 	increase assumption or graded rate future salary increase assumption

18.30	plan
	future salary increase assumption
	
18.31	local government correctional service retirement plan
	assumption C
	
18.32	Duluth teachers retirement plan
	assumption A
	
18.33	St. Paul teachers retirement plan
	assumption B
	
18.34 	For plans other than the Duluth teachers 
18.35 	retirement plan, the select calculation 
18.36 	is: during the designated select period, a 
18.37 	designated percentage rate is multiplied by 
19.1 	the result of the designated integer minus T, 
19.2 	where T is the number of completed years 
19.3 	of service, and is added to the applicable 
19.4 	future salary increase assumption. The 
19.5 	designated select period is ten years and the 
19.6 	designated integer is ten for all retirement 
19.7 	plans covered by this clause. The designated 
19.8 	percentage rate is 0.3 percent for the St. Paul 
19.9 	Teachers Retirement Fund Association. The 
19.10 	select calculation for the Duluth Teachers 
19.11 	Retirement Fund Association is 8.00 percent 
19.12 	per year for service years one through seven, 
19.13 	7.25 percent per year for service years seven 
19.14 	and eight, and 6.50 percent per year for 
19.15 	service years eight and nine.
19.16 	The ultimate future salary increase assumption is:

19.17	age
	A
	B
	C
		
19.18	16
	8.00%
	6.90%
	9.00%
		
19.19	17
	8.00
	6.90
	9.00
		
19.20	18
	8.00
	6.90
	9.00
		
19.21	19
	8.00
	6.90
	9.00
		
19.22	20
	6.90
	6.90
	9.00
		
19.23	21
	6.90
	6.90
	8.75
		
19.24	22
	6.90
	6.90
	8.50
		
19.25	23
	6.85
	6.85
	8.25
		
19.26	24
	6.80
	6.80
	8.00
		
19.27	25
	6.75
	6.75
	7.75
		
19.28	26
	6.70
	6.70
	7.50
		
19.29	27
	6.65
	6.65
	7.25
		
19.30	28
	6.60
	6.60
	7.00
		
19.31	29
	6.55
	6.55
	6.75
		
19.32	30
	6.50
	6.50
	6.75
		
19.33	31
	6.45
	6.45
	6.50
		
19.34	32
	6.40
	6.40
	6.50
		
19.35	33
	6.35
	6.35
	6.50
		
19.36	34
	6.30
	6.30
	6.25
		
19.37	35
	6.25
	6.25
	6.25
		
19.38	36
	6.20
	6.20
	6.00
		
19.39	37
	6.15
	6.15
	6.00
		
19.40	38
	6.10
	6.10
	6.00
		
20.1	39
	6.05
	6.05
	5.75
		
20.2	40
	6.00
	6.00
	5.75
		
20.3	41
	5.90
	5.95
	5.75
		
20.4	42
	5.80
	5.90
	5.50
		
20.5	43
	5.70
	5.85
	5.25
		
20.6	44
	5.60
	5.80
	5.25
		
20.7	45
	5.50
	5.75
	5.00
		
20.8	46
	5.40
	5.70
	5.00
		
20.9	47
	5.30
	5.65
	5.00
		
20.10	48
	5.20
	5.60
	5.00
		
20.11	49
	5.10
	5.55
	5.00
		
20.12	50
	5.00
	5.50
	5.00
		
20.13	51
	4.90
	5.45
	5.00
		
20.14	52
	4.80
	5.40
	5.00
		
20.15	53
	4.70
	5.35
	5.00
		
20.16	54
	4.60
	5.30
	5.00
		
20.17	55
	4.50
	5.25
	4.75
		
20.18	56
	4.40
	5.20
	4.75
		
20.19	57
	4.30
	5.15
	4.50
		
20.20	58
	4.20
	5.10
	4.25
		
20.21	59
	4.10
	5.05
	4.25
		
20.22	60
	4.00
	5.00
	4.25
		
20.23	61
	3.90
	5.00
	4.25
		
20.24	62
	3.80
	5.00
	4.25
		
20.25	63
	3.70
	5.00
	4.25
		
20.26	64
	3.60
	5.00
	4.25
		
20.27	65
	3.50
	5.00
	4.00
		
20.28	66
	3.50
	5.00
	4.00
		
20.29	67
	3.50
	5.00
	4.00
		
20.30	68
	3.50
	5.00
	4.00
		
20.31	69
	3.50
	5.00
	4.00
		
20.32	70
	3.50
	5.00
	4.00
		
20.33 	(3) service-related ultimate future salary increase assumption

20.34
20.35	general state employees retirement plan of the 
Minnesota State Retirement System
	assumption A
	
20.36
20.37	general employees retirement plan of the Public 
Employees Retirement Association
	assumption B
	
20.38	Teachers Retirement Association
	assumption C
	
20.39	public employees police and fire retirement plan
	assumption D
	
20.40	State Patrol retirement plan
	assumption E
	
20.41
20.42	correctional state employees retirement plan of the 
Minnesota State Retirement System
	assumption F

21.1
21.2	service 
length
	A
	B
	C
	D
	E
	F
	
21.3	1
	10.50%
	12.03%
	12.00%
	13.00%
	8.00%
	6.00%
	
21.4	2
	8.10
	8.90
	9.00
	11.00
	7.50
	5.85
	
21.5	3
	6.90
	7.46
	8.00
	9.00
	7.00
	5.70
	
21.6	4
	6.20
	6.58
	7.50
	8.00
	6.75
	5.55
	
21.7	5
	5.70
	5.97
	7.25
	6.50
	6.50
	5.40
	
21.8	6
	5.30
	5.52
	7.00
	6.10
	6.25
	5.25
	
21.9	7
	5.00
	5.16
	6.85
	5.80
	6.00
	5.10
	
21.10	8
	4.70
	4.87
	6.70
	5.60
	5.85
	4.95
	
21.11	9
	4.50
	4.63
	6.55
	5.40
	5.70
	4.80
	
21.12	10
	4.40
	4.42
	6.40
	5.30
	5.55
	4.65
	
21.13	11
	4.20
	4.24
	6.25
	5.20
	5.40
	4.55
	
21.14	12
	4.10
	4.08
	6.00
	5.10
	5.25
	4.45
	
21.15	13
	4.00
	3.94
	5.75
	5.00
	5.10
	4.35
	
21.16	14
	3.80
	3.82
	5.50
	4.90
	4.95
	4.25
	
21.17	15
	3.70
	3.70
	5.25
	4.80
	4.80
	4.15
	
21.18	16
	3.60
	3.60
	5.00
	4.80
	4.65
	4.05
	
21.19	17
	3.50
	3.51
	4.75
	4.80
	4.50
	3.95
	
21.20	18
	3.50
	3.50
	4.50
	4.80
	4.35
	3.85
	
21.21	19
	3.50
	3.50
	4.25
	4.80
	4.20
	3.75
	
21.22	20
	3.50
	3.50
	4.00
	4.80
	4.05
	3.75
	
21.23	21
	3.50
	3.50
	3.90
	4.70
	4.00
	3.75
	
21.24	22
	3.50
	3.50
	3.80
	4.60
	4.00
	3.75
	
21.25	23
	3.50
	3.50
	3.70
	4.50
	4.00
	3.75
	
21.26	24
	3.50
	3.50
	3.60
	4.50
	4.00
	3.75
	
21.27	25
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
21.28	26
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
21.29	27
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
21.30	28
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
21.31	29
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
21.32
21.33	30 or 
more
	3.50
	3.50
	3.50
	4.50
	4.00
	3.75
	
21.34 	(c) The actuarial valuation must use the applicable following payroll growth 
21.35 	assumption for calculating the amortization requirement for the unfunded actuarial 
21.36 	accrued liability where the amortization retirement is calculated as a level percentage 
21.37 	of an increasing payroll:

21.38	plan
	payroll growth assumption
	
21.39
21.40	general state employees retirement plan of the 
Minnesota State Retirement System
	3.75%
	
21.41	correctional state employees retirement plan
	3.75
	
21.42	State Patrol retirement plan
	3.75
	
21.43	judges retirement plan
	3.00
	
22.1
22.2	general employees retirement plan of the Public 
Employees Retirement Association
	3.75
	
22.3	public employees police and fire retirement plan
	3.75
	
22.4	local government correctional service retirement plan
	3.75
	
22.5	teachers retirement plan
	3.75
	
22.6	Duluth teachers retirement plan
	4.50
	
22.7	St. Paul teachers retirement plan
	5.00
	
22.8 	(d) The assumptions set forth in paragraphs (b) and (c) continue to apply, unless a 
22.9 	different salary assumption or a different payroll increase assumption:
22.10 	(1) has been proposed by the governing board of the applicable retirement plan;
22.11 	(2) is accompanied by the concurring recommendation of the actuary retained under 
22.12 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the 
22.13 	most recent actuarial valuation report if section 356.214 does not apply; and
22.14 	(3) has been approved or deemed approved under subdivision 18.

22.15 	EFFECTIVE DATE. This section is effective July 1, 2013.

22.16 	Sec. 10. Minnesota Statutes 2012, section 356.30, subdivision 3, is amended to read:
22.17 		Subd. 3.Covered plans. This section applies to the following retirement plans:
22.18 	(1) the general state employees retirement plan of the Minnesota State Retirement 
22.19 	System, established under chapter 352;
22.20 	(2) the correctional state employees retirement plan of the Minnesota State 
22.21 	Retirement System, established under chapter 352;
22.22 	(3) the unclassified employees retirement program, established under chapter 352D;
22.23 	(4) the State Patrol retirement plan, established under chapter 352B;
22.24 	(5) the legislators retirement plan, established under chapter 3A, including 
22.25 	constitutional officers as specified in that chapter;
22.26 	(6) the elective state officers retirement plan, established under chapter 352C;
22.27 	(7)(6) the general employees retirement plan of the Public Employees Retirement 
22.28 	Association, established under chapter 353, including the MERF division of the Public 
22.29 	Employees Retirement Association;
22.30 	(8)(7) the public employees police and fire retirement plan of the Public Employees 
22.31 	Retirement Association, established under chapter 353;
22.32 	(9)(8) the local government correctional service retirement plan of the Public 
22.33 	Employees Retirement Association, established under chapter 353E;
22.34 	(10) (9) the Teachers Retirement Association, established under chapter 354;
22.35 	(11)(10) the St. Paul Teachers Retirement Fund Association, established under 
22.36 	chapter 354A;
23.1 	(12)(11) the Duluth Teachers Retirement Fund Association, established under 
23.2 	chapter 354A; and
23.3 	(13)(12) the judges retirement fund, established by chapter 490.

23.4 	EFFECTIVE DATE. This section is effective July 1, 2013.

23.5 	Sec. 11. Minnesota Statutes 2012, section 356.401, subdivision 3, is amended to read:
23.6 		Subd. 3.Covered retirement plans. The provisions of this section apply to the 
23.7 	following retirement plans:
23.8 	(1) the legislators retirement plan, established by chapter 3A, including constitutional 
23.9 	officers as specified in that chapter;
23.10 	(2) the general state employees retirement plan of the Minnesota State Retirement 
23.11 	System, established by chapter 352;
23.12 	(3) the correctional state employees retirement plan of the Minnesota State 
23.13 	Retirement System, established by chapter 352;
23.14 	(4) the State Patrol retirement plan, established by chapter 352B;
23.15 	(5) the elective state officers retirement plan, established by chapter 352C;
23.16 	(6)(5) the unclassified state employees retirement program, established by chapter 
23.17 	352D;
23.18 	(7)(6) the general employees retirement plan of the Public Employees Retirement 
23.19 	Association, established by chapter 353, including the MERF division of the Public 
23.20 	Employees Retirement Association;
23.21 	(8)(7) the public employees police and fire plan of the Public Employees Retirement 
23.22 	Association, established by chapter 353;
23.23 	(9)(8) the public employees defined contribution plan, established by chapter 353D;
23.24 	(10)(9) the local government correctional service retirement plan of the Public 
23.25 	Employees Retirement Association, established by chapter 353E;
23.26 	(11)(10) the voluntary statewide lump-sum volunteer firefighter retirement plan, 
23.27 	established by chapter 353G;
23.28 	(12)(11) the Teachers Retirement Association, established by chapter 354;
23.29 	(13)(12) the Duluth Teachers Retirement Fund Association, established by chapter 
23.30 	354A;
23.31 	(14)(13) the St. Paul Teachers Retirement Fund Association, established by chapter 
23.32 	354A;
23.33 	(15)(14) the individual retirement account plan, established by chapter 354B;
23.34 	(16)(15) the higher education supplemental retirement plan, established by chapter 
23.35 	354C; and
24.1 	(17)(16) the judges retirement fund, established by chapter 490.

24.2 	EFFECTIVE DATE. This section is effective July 1, 2013.

24.3 	Sec. 12. Minnesota Statutes 2012, section 356.415, subdivision 1a, is amended to read:
24.4 		Subd. 1a.Annual postretirement adjustments; Minnesota State Retirement 
24.5 	System plans other than State Patrol retirement plan. (a) Retirement annuity, disability 
24.6 	benefit, or survivor benefit recipients of the legislators retirement plan plans, including 
24.7 	constitutional officers as specified in chapter 3A, the general state employees retirement 
24.8 	plan, the correctional state employees retirement plan, the elected state officers retirement 
24.9 	plan, the unclassified state employees retirement program, and the judges retirement plan 
24.10 	are entitled to a postretirement adjustment annually on January 1, as follows:
24.11 	(1) a postretirement increase of two percent must be applied each year, effective 
24.12 	on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient 
24.13 	who has been receiving an annuity or a benefit for at least 18 full months before the 
24.14 	January 1 increase; and
24.15 	(2) for each annuitant or benefit recipient who has been receiving an annuity or 
24.16 	a benefit for at least six full months, an annual postretirement increase of 1/12 of two 
24.17 	percent for each month that the person has been receiving an annuity or benefit must be 
24.18 	applied, effective January 1, following the calendar year in which the person has been 
24.19 	retired for at least six months, but has been retired for less than 18 months.
24.20 	(b) The increases provided by this subdivision commence on January 1, 2011. 
24.21 	Increases under this subdivision for the general state employees retirement plan, the 
24.22 	correctional state employees retirement plan, or the judges retirement plan terminate 
24.23 	on December 31 of the calendar year in which the actuarial valuation prepared by the 
24.24 	approved actuary under sections 356.214 and 356.215 and the standards for actuarial work 
24.25 	promulgated by the Legislative Commission on Pensions and Retirement indicates that the 
24.26 	market value of assets of the retirement plan equals or exceeds 90 percent of the actuarial 
24.27 	accrued liability of the retirement plan and increases under subdivision 1 recommence 
24.28 	after that date. Increases under this subdivision for the legislators retirement plan or the 
24.29 	elected state officers retirement plan terminate on December 31 of the calendar year in 
24.30 	which the actuarial valuation prepared by the approved actuary under sections 356.214 and 
24.31 	356.215 and the standards for actuarial work promulgated by the Legislative Commission 
24.32 	on Pensions and Retirement indicates that the market value of assets of the general state 
24.33 	employees retirement plan equals or exceeds 90 percent of the actuarial accrued liability 
24.34 	of the retirement plan and increases under subdivision 1 recommence after that date.
25.1 	(c) An increase in annuity or benefit payments under this subdivision must be made 
25.2 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
25.3 	executive director of the applicable covered retirement plan requesting that the increase 
25.4 	not be made.

25.5 	EFFECTIVE DATE. This section is effective July 1, 2013.

25.6 	Sec. 13. Minnesota Statutes 2012, section 356.415, subdivision 2, is amended to read:
25.7 		Subd. 2.Covered retirement plans. The provisions of this section apply to the 
25.8 	following retirement plans:
25.9 	(1) the legislators retirement plan established under chapter 3A, including 
25.10 	constitutional officers as specified in that chapter;
25.11 	(2) the correctional state employees retirement plan of the Minnesota State 
25.12 	Retirement System established under chapter 352;
25.13 	(3) the general state employees retirement plan of the Minnesota State Retirement 
25.14 	System established under chapter 352;
25.15 	(4) the State Patrol retirement plan established under chapter 352B;
25.16 	(5) the elective state officers retirement plan established under chapter 352C;
25.17 	(6)(5) the general employees retirement plan of the Public Employees Retirement 
25.18 	Association established under chapter 353, including the MERF division of the Public 
25.19 	Employees Retirement Association;
25.20 	(7)(6) the public employees police and fire retirement plan of the Public Employees 
25.21 	Retirement Association established under chapter 353;
25.22 	(8)(7) the local government correctional employees retirement plan of the Public 
25.23 	Employees Retirement Association established under chapter 353E;
25.24 	(9)(8) the teachers retirement plan established under chapter 354; and
25.25 	(10)(9) the judges retirement plan established under chapter 490.

25.26 	EFFECTIVE DATE. This section is effective July 1, 2013.

25.27 	Sec. 14. APPLICATION.
 25.28 	Nothing in this act should be interpreted as modifying benefits or benefit eligibility 
25.29 	compared to law in effect immediately before the effective date of this section.

25.30 	EFFECTIVE DATE. This section is effective July 1, 2013.

25.31 	Sec. 15.  REPEALER.
 26.1 	Minnesota Statutes 2012, sections 3A.02, subdivision 3; 352C.001; 352C.091, 
26.2 	subdivision 1; and 352C.10, are repealed.

26.3 	EFFECTIVE DATE. This section is effective July 1, 2013.