1.1 	A bill for an act
1.2 	relating to retirement; Public Employees Retirement Association; modifications 
1.3 	of an administrative nature; clarifying physician and St. Paul Port Authority 
1.4 	employee coverage; clarifying termination of membership procedures; adding 
1.5 	indefinite layoff definition; clarifying board management and election provisions; 
1.6 	specifying board legal authority; revising various receipts, disbursements, and 
1.7 	collection provisions for consistency with federal requirements; clarifying 
1.8 	disability benefit termination procedures; simplifying and removing obsolete 
1.9 	bounce-back annuity language; removing five-year term certain survivor 
1.10 	coverage option; clarifying various disability and returning disability provisions; 
1.11 	removing authority for privately operated ambulance services to contribute to the 
1.12 	Public Employees Retirement Association defined contribution plan; authorizing 
1.13 	counties to certify positions to be included in the local government correctional 
1.14 	service plan as sufficiently similar to existing positions; making a temporary 
1.15 	returning disabilitant provision permanent;amending Minnesota Statutes 2004, 
1.16 	sections 353.01, subdivisions 2a, 11a, 11b, 12, 16,  by adding a subdivision; 
1.17 	353.03, subdivisions 1, 1a,  by adding a subdivision; 353.27, subdivisions 7, 7a, 
1.18 	7b; 353.29, subdivision 8; 353.30, subdivisions 3a, 3b; 353.32, subdivisions 
1.19 	1a, 1b; 353.33, subdivisions 1, 9; 353.34, subdivision 1; 353.656, subdivision 
1.20 	4; 353D.01, subdivision 2; 353D.02, subdivision 3; 353E.02, subdivisions 2, 3; 
1.21 	Minnesota Statutes 2005 Supplement, sections 353.01, subdivision 2d; 353.28, 
1.22 	subdivision 6;  Laws 2004, chapter 267, article 8, section 41; proposing coding 
1.23 	for new law in Minnesota Statutes, chapter 353.
1.24 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.25 	Section 1. Minnesota Statutes 2004, section 353.01, subdivision 2a, is amended to read:
1.26 		Subd. 2a.Included employees. (a) Public employees whose salary from one 
1.27 	governmental subdivision exceeds $425 in any month shall participate as members of the 
1.28 	association. If the salary is less than $425 in a subsequent month, the employee retains 
1.29 	membership eligibility. Eligible public employees shall participate as members of the 
1.30 	association with retirement coverage by the public employees retirement plan or the public 
1.31 	employees police and fire retirement plan under this chapter, or the local government 
2.1 	correctional employees retirement plan under chapter 353E, whichever applies, as a 
2.2 	condition of their employment on the first day of employment unless they:
2.3 	(1) are specifically excluded under subdivision 2b;
2.4 	(2) do not exercise their option to elect retirement coverage in the association as 
2.5 	provided in subdivision 2d, paragraph (a); or
2.6 	(3) are employees of the governmental subdivisions listed in subdivision 2d, 
2.7 	paragraph (b), where the governmental subdivision has not elected to participate as a 
2.8 	governmental subdivision covered by the association.
2.9 	(b) A public employee who was a member of the association on June 30, 2002, 
2.10 	based on employment that qualified for membership coverage by the public employees 
2.11 	retirement plan or the public employees police and fire plan under this chapter, or the local 
2.12 	government correctional employees retirement plan under chapter 353E as of June 30, 
2.13 	2002, retains that membership until the employee terminates public employment under 
2.14 	subdivision 11a or terminates membership under subdivision 11b.
2.15 	(c) Public employees under paragraph (a) includes physicians under section 
2.16 	353D.01, subdivision 2, who do not elect public employees defined contribution plan 
2.17 	coverage under section 353D.02, subdivision 2.

2.18 	Sec. 2. Minnesota Statutes 2005 Supplement, section 353.01, subdivision 2d, is 
2.19 	amended to read:
2.20 		Subd. 2d.Optional membership. (a) Membership in the association is optional 
2.21 	by action of the individual employee for the following public employees who meet the 
2.22 	conditions set forth in subdivision 2a:
2.23 	(1) members of the coordinated plan who are also employees of labor organizations 
2.24 	as defined in section 353.017, subdivision 1, for their employment by the labor 
2.25 	organization only if they elect to have membership under section 353.017, subdivision 2;
2.26 	(2) persons who are elected or persons who are appointed to elected positions other 
2.27 	than local governing body elected positions who elect to participate by filing a written 
2.28 	election for membership;
2.29 	(3) members of the association who are appointed by the governor to be a state 
2.30 	department head and who elect not to be covered by the general state employees retirement 
2.31 	plan of the Minnesota State Retirement System under section 352.021;
2.32 	(4) city managers as defined in section 353.028, subdivision 1, who do not elect to be 
2.33 	excluded from membership in the association under section 353.028, subdivision 2; and
3.1 	(5) employees of the Port Authority of the city of St. Paul ~~who were at least age 45~~
3.2 	on January 1, 2003, who were at least age 45 on that date, and who elect to participate by 
3.3 	filing a written election for membership.
3.4 	(b) Membership in the association is optional by action of the governmental 
3.5 	subdivision for the employees of the following governmental subdivisions under the 
3.6 	conditions specified:
3.7 	(1) the Minnesota Association of Townships if the board of the association, at its 
3.8 	option, certifies to the executive director that its employees are to be included for purposes 
3.9 	of retirement coverage, in which case the status of the association as a participating 
3.10 	employer is permanent;
3.11 	(2) a county historical society if the county in which the historical society is located, 
3.12 	at its option, certifies to the executive director that the employees of the historical society 
3.13 	are to be county employees for purposes of retirement coverage under this chapter. The 
3.14 	status as a county employee must be accorded to all similarly situated county historical 
3.15 	society employees and, once established, must continue as long as a person is an employee 
3.16 	of the county historical society; and
3.17 	(3) Hennepin Healthcare System, Inc., a public corporation, with respect to 
3.18 	employees other than paramedics, emergency medical technicians, and protection officers, 
3.19 	if the corporate board establishes alternative retirement plans for certain classes of 
3.20 	employees of the corporation and certifies the employees to be excluded from future 
3.21 	retirement coverage.
3.22 	(c) For employees who are covered by paragraph (a), clause (1), (2), or (3), or 
3.23 	covered by paragraph (b), clause (1) or (2), if the necessary membership election is 
3.24 	not made, the employee is excluded from retirement coverage under this chapter. For 
3.25 	employees who are covered by paragraph (a), clause (4), if the necessary election is not 
3.26 	made, the employee must become a member and have retirement coverage under this 
3.27 	chapter. For employees specified in paragraph (b), clause (3), membership continues until 
3.28 	the exclusion option is exercised for the designated class of employee. The option to 
3.29 	become a member, once exercised under this subdivision, may not be withdrawn until 
3.30 	termination of public service as defined under subdivision 11a.

3.31 	Sec. 3. Minnesota Statutes 2004, section 353.01, subdivision 11a, is amended to read:
3.32 		Subd. 11a.Termination of public service. (a) "Termination of public service" 
3.33 	occurs when a member resigns or is dismissed from public service by the employing 
3.34 	governmental subdivision ~~or when a position ends and the member who held the position~~ 
3.35 	~~is not considered by the governmental subdivision to be on a temporary layoff,~~ and 
4.1 	the employee does not, within 30 days of the date the employment relationship ended, 
4.2 	return to an employment position in the same governmental subdivision or when the 
4.3 	employer-employee relationship is severed due to the expiration of a layoff under 
4.4 	subdivision 12 or 12c.
4.5 	(b) The termination of public service must be recorded in the association records 
4.6 	upon receipt of an appropriate notice from the governmental subdivision.

4.7 	Sec. 4. Minnesota Statutes 2004, section 353.01, subdivision 11b, is amended to read:
4.8 		Subd. 11b.Termination of membership. (a) "Termination of membership" means 
4.9 	the conclusion of membership in the association for a person who has not terminated 
4.10 	public service under subdivision 11a and occurs:
4.11 	(1) ~~upon termination of public service under subdivision 11a;~~
4.12 	~~(2) when a member does not return to work within 30 days of the expiration of~~ 
4.13 	~~an authorized temporary layoff under subdivision 12 or an authorized leave of absence~~ 
4.14 	~~under subdivision 31 as evidenced by the appropriate record filed by the governmental~~ 
4.15 	~~subdivision; or~~
4.16 	~~(3)~~ when a person files a written election with the association to discontinue 
4.17 	employee deductions under section  353.27, subdivision 7, paragraph (a), clause (1);
4.18 	(2) when a city manager files a written election with the association to discontinue 
4.19 	employee deductions under section 353.028, subdivision 2; or
4.20 	(3) when a member transfers to a temporary position and becomes excluded from 
4.21 	membership under subdivision 2b, clause (4). 
4.22 	(b) The termination of membership under clause (3) must be reported to the 
4.23 	association by the governmental subdivision.
4.24 	~~(c) If the employee subsequently returns to a position in the same governmental~~ 
4.25 	~~subdivision, the employee shall not again be required to earn a salary in excess of $425 per~~ 
4.26 	~~month to qualify for membership, unless the employee has taken a refund of accumulated~~ 
4.27 	~~employee deduction plus interest under section  353.34, subdivision 1.~~ 

4.28 	Sec. 5. Minnesota Statutes 2004, section 353.01, subdivision 12, is amended to read:
4.29 		Subd. 12.Authorized temporary or seasonal layoff. "Authorized temporary 
4.30 	or seasonal layoff," including seasonal leave of absence, means a suspension of public 
4.31 	service for a limited period during a year authorized by the employing governmental 
4.32 	subdivision for a ~~period not exceeding three months in any calendar year, as evidenced by~~ 
4.33 	~~appropriate record of the employer and promptly transmitted to the association~~ member 
5.1 	who is expected to return to the same position at the end of the layoff period and for which 
5.2 	there has been no termination of public service under subdivision 11a.

5.3 	Sec. 6. Minnesota Statutes 2004, section 353.01, is amended by adding a subdivision 
5.4 	to read:
5.5 		Subd. 12c.Indefinite layoff. "Indefinite layoff" occurs when a member is placed on 
5.6 	a layoff that is not a temporary or seasonal layoff under subdivision 12, for which no date 
5.7 	has been specified by the employing governmental subdivision for the employee's return 
5.8 	to work, and there has been no termination of public service under subdivision 11a.

5.9 	Sec. 7. Minnesota Statutes 2004, section 353.01, subdivision 16, is amended to read:
5.10 		Subd. 16.Allowable service; limits and computation. (a) "Allowable service" 
5.11 	means:
5.12 	(1) service during years of actual membership in the course of which employee 
5.13 	contributions were made, periods covered by payments in lieu of salary deductions under 
5.14 	section  353.35; 
5.15 	(2) service in years during which the public employee was not a member but for 
5.16 	which the member later elected, while a member, to obtain credit by making payments to 
5.17 	the fund as permitted by any law then in effect;
5.18 	(3) a period of authorized leave of absence with pay from which deductions for 
5.19 	employee contributions are made, deposited, and credited to the fund;
5.20 	(4) a period of authorized personal, parental, or medical leave of absence without 
5.21 	pay, including a leave of absence covered under the federal Family Medical Leave Act, 
5.22 	that does not exceed one year, and during or for which a member obtained service credit 
5.23 	for each month in the leave period by payments to the fund made in place of salary 
5.24 	deductions. The payments must be made in an amount or amounts based on the member's 
5.25 	average salary on which deductions were paid for the last six months of public service, or 
5.26 	for that portion of the last six months while the member was in public service, to apply to 
5.27 	the period in either case that immediately precedes the commencement of the leave of 
5.28 	absence. If the employee elects to pay the employee contributions for the period of any 
5.29 	authorized personal, parental, or medical leave of absence without pay, or for any portion 
5.30 	of the leave, the employee shall also, as a condition to the exercise of the election, pay 
5.31 	to the fund an amount equivalent to the required employer and the additional employer 
5.32 	contributions, if any, for the employee. The payment must be made within one year from 
5.33 	the expiration of the leave of absence or within 20 days after termination of public service 
5.34 	under subdivision 11a, whichever is earlier. The employer, by appropriate action of its 
6.1 	governing body which is made a part of its official records and which is adopted before the 
6.2 	date of the first payment of the employee contribution, may certify to the association in 
6.3 	writing its commitment to pay the employer and additional employer contributions from 
6.4 	the proceeds of a tax levy made under section  353.28. Payments under this paragraph must 
6.5 	include interest at an annual rate of 8.5 percent compounded annually from the date of the 
6.6 	termination of the leave of absence to the date payment is made. An employee shall return 
6.7 	to public service and render a minimum of three months of allowable service in order to 
6.8 	be eligible to pay employee and employer contributions for a subsequent authorized leave 
6.9 	of absence without pay. Upon payment, the employee must be granted allowable service 
6.10 	credit for the purchased period; 
6.11 	(5) a periodic, repetitive leave that is offered to all employees of a governmental 
6.12 	subdivision. The leave program may not exceed 208 hours per annual normal work 
6.13 	cycle as certified to the association by the employer. A participating member obtains 
6.14 	service credit by making employee contributions in an amount or amounts based on the 
6.15 	member's average salary that would have been paid if the leave had not been taken. The 
6.16 	employer shall pay the employer and additional employer contributions on behalf of the 
6.17 	participating member. The employee and the employer are responsible to pay interest on 
6.18 	their respective shares at the rate of 8.5 percent a year, compounded annually, from the 
6.19 	end of the normal cycle until full payment is made. An employer shall also make the 
6.20 	employer and additional employer contributions, plus 8.5 percent interest, compounded 
6.21 	annually, on behalf of an employee who makes employee contributions but terminates 
6.22 	public service. The employee contributions must be made within one year after the end of 
6.23 	the annual normal working cycle or within 20 days after termination of public service, 
6.24 	whichever is sooner. The association shall prescribe the manner and forms to be used by a 
6.25 	governmental subdivision in administering a periodic, repetitive leave. Upon payment, the 
6.26 	member must be granted allowable service credit for the purchased period;
6.27 	(6) an authorized temporary or seasonal layoff under subdivision 12, limited to three 
6.28 	months allowable service per authorized temporary or seasonal layoff in one calendar year. 
6.29 	An employee who has received the maximum service credit allowed for an authorized 
6.30 	temporary or seasonal layoff must return to public service and must obtain a minimum of 
6.31 	three months of allowable service subsequent to the layoff in order to receive allowable 
6.32 	service for a subsequent authorized temporary or seasonal layoff; or
6.33 	(7) a period during which a member is absent from employment by a governmental 
6.34 	subdivision by reason of service in the uniformed services, as defined in United States 
6.35 	Code, title 38, section 4303(13), if the member returns to public service upon discharge 
6.36 	from service in the uniformed service within the time frames required under United 
7.1 	States Code, title 38, section 4312(e), provided that the member did not separate from 
7.2 	uniformed service with a dishonorable or bad conduct discharge or under other than 
7.3 	honorable conditions. The service is credited if the member pays into the fund equivalent 
7.4 	employee contributions based upon the contribution rate or rates in effect at the time 
7.5 	that the uniformed service was performed multiplied by the full and fractional years 
7.6 	being purchased and applied to the annual salary rate. The annual salary rate is the 
7.7 	average annual salary during the purchase period that the member would have received 
7.8 	if the member had continued to be employed in covered employment rather than to 
7.9 	provide uniformed service, or, if the determination of that rate is not reasonably certain, 
7.10 	the annual salary rate is the member's average salary rate during the 12-month period of 
7.11 	covered employment rendered immediately preceding the period of the uniformed service. 
7.12 	Payment of the member equivalent contributions must be made during a period which 
7.13 	begins with the date on which the individual returns to public employment and that is three 
7.14 	times the length of the military leave period, or within five years of the date of discharge 
7.15 	from the military service, whichever is less. If the determined payment period is less than 
7.16 	one year, the contributions required under this clause to receive service credit may be 
7.17 	made within one year of the discharge date. Payment may not be accepted following 20 
7.18 	days after termination of public service under subdivision 11a. If the member equivalent 
7.19 	contributions provided for in this clause are not paid in full, the member's allowable 
7.20 	service credit must be prorated by multiplying the full and fractional number of years of 
7.21 	uniformed service eligible for purchase by the ratio obtained by dividing the total member 
7.22 	contributions received by the total member contributions otherwise required under this 
7.23 	clause. The equivalent employer contribution, and, if applicable, the equivalent additional 
7.24 	employer contribution must be paid by the governmental subdivision employing the 
7.25 	member if the member makes the equivalent employee contributions. The employer 
7.26 	payments must be made from funds available to the employing unit, using the employer 
7.27 	and additional employer contribution rate or rates in effect at the time that the uniformed 
7.28 	service was performed, applied to the same annual salary rate or rates used to compute the 
7.29 	equivalent member contribution. The governmental subdivision involved may appropriate 
7.30 	money for those payments. The amount of service credit obtainable under this section may 
7.31 	not exceed five years unless a longer purchase period is required under United States Code, 
7.32 	title 38, section 4312. The employing unit shall pay interest on all equivalent member and 
7.33 	employer contribution amounts payable under this clause. Interest must be computed at 
7.34 	a rate of 8.5 percent compounded annually from the end of each fiscal year of the leave 
7.35 	or the break in service to the end of the month in which the payment is received. Upon 
7.36 	payment, the employee must be granted allowable service credit for the purchased period.
8.1 	(b) For calculating benefits under sections  353.30,  353.31,  353.32, and  353.33 for 
8.2 	state officers and employees displaced by the Community Corrections Act, chapter 401, 
8.3 	and transferred into county service under section  401.04, "allowable service" means the 
8.4 	combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and 
8.5 	section  352.01, subdivision 11. 
8.6 	(c) For a public employee who has prior service covered by a local police or 
8.7 	firefighters relief association that has consolidated with the Public Employees Retirement 
8.8 	Association or to which section  353.665 applies, and who has elected the type of benefit 
8.9 	coverage provided by the public employees police and fire fund either under section  
8.10 	353A.08 following the consolidation or under section  353.665, subdivision 4, "applicable 
8.11 	service" is a period of service credited by the local police or firefighters relief association 
8.12 	as of the effective date of the consolidation based on law and on bylaw provisions 
8.13 	governing the relief association on the date of the initiation of the consolidation procedure. 
8.14 	(d) No member may receive more than 12 months of allowable service credit in a 
8.15 	year either for vesting purposes or for benefit calculation purposes.
8.16 	(e) MS 2002 (Expired)

8.17 	Sec. 8. Minnesota Statutes 2004, section 353.03, subdivision 1, is amended to read:
8.18 		Subdivision 1.Management; composition; election. (a) The management of the 
8.19 	public employees retirement fund is vested in an 11-member board of trustees consisting 
8.20 	of ten members and the state auditor ~~who~~. The state auditor may designate a deputy 
8.21 	auditor with expertise in pension matters as the auditor's representative on the board. The 
8.22 	governor shall appoint five trustees to four-year terms, one of whom shall be designated to 
8.23 	represent school boards, one to represent cities, one to represent counties, one who is a 
8.24 	retired annuitant, and one who is a public member knowledgeable in pension matters. The 
8.25 	membership of the association, including recipients of retirement annuities and disability 
8.26 	and survivor benefits, shall elect five trustees for terms of four years, one of whom must 
8.27 	be a member of the police and fire fund and one of whom must be a former member 
8.28 	who met the definition of public employee under section  353.01, subdivisions 2 and 
8.29 	2a, for at least five years prior to terminating membership or a member who receives a 
8.30 	disability benefit~~, for terms of four years~~. Terms expire on January 31 of the fourth year, 
8.31 	and positions are vacant until newly elected members are seated. Except as provided in 
8.32 	this subdivision, trustees elected by the membership of the association must be public 
8.33 	employees and members of the association. 
8.34 	(b) For seven days beginning October 1 of each year preceding a year in which 
8.35 	an election is held, the association shall accept at its office filings in person or by mail 
9.1 	of candidates for the board of trustees. A candidate shall submit at the time of filing a 
9.2 	nominating petition signed by 25 or more members of the ~~fund~~ association. No name may 
9.3 	be withdrawn from nomination by the nominee after October 15. At the request of a 
9.4 	candidate for an elected position on the board of trustees, the board shall mail a statement 
9.5 	of up to 300 words prepared by the candidate to all persons eligible to vote in the election 
9.6 	of the candidate. The board may adopt policies, subject to review and approval by the 
9.7 	secretary of state under paragraph (e), to govern the form and length of these statements, 
9.8 	timing of mailings, and deadlines for submitting materials to be mailed. ~~These policies~~ 
9.9 	~~must be approved by the secretary of state.~~ The secretary of state shall resolve disputes 
9.10 	between the board and a candidate concerning application of these policies to a particular 
9.11 	statement. 
9.12 	(c) By January 10 of each year in which elections are to be held, the board shall 
9.13 	distribute by mail to the members ballots listing the candidates. No member may vote for 
9.14 	more than one candidate for each board position to be filled. A ballot indicating a vote for 
9.15 	more than one person for any position is void. No special marking may be used on the 
9.16 	ballot to indicate incumbents. Ballots mailed to the association must be postmarked no 
9.17 	later than January 31. The ballot envelopes must be so designated and the ballots counted 
9.18 	in a manner that ensures that each vote is secret.
9.19 	(d) A candidate who~~:~~
9.20 	~~(1)~~ receives contributions or makes expenditures in excess of $100~~;~~, or
9.21 	~~(2)~~ has given implicit or explicit consent for any other person to receive contributions 
9.22 	or make expenditures in excess of $100 for the purpose of bringing about the candidate's 
9.23 	election, shall file a report with the campaign finance and public disclosure board 
9.24 	disclosing the source and amount of all contributions to the candidate's campaign. The 
9.25 	campaign finance and public disclosure board shall prescribe forms governing these 
9.26 	disclosures. Expenditures and contributions have the meaning defined in section  10A.01. 
9.27 	These terms do not include the mailing made by the association board on behalf of the 
9.28 	candidate. A candidate shall file a report within 30 days from the day that the results of 
9.29 	the election are announced. The Campaign Finance and Public Disclosure Board shall 
9.30 	maintain these reports and make them available for public inspection in the same manner 
9.31 	as the board maintains and makes available other reports filed with it. ~~By January 10~~ 
9.32 	~~of each year in which elections are to be held the board shall distribute by mail to the~~ 
9.33 	~~members ballots listing the candidates. No member may vote for more than one candidate~~ 
9.34 	~~for each board position to be filled. A ballot indicating a vote for more than one person for~~ 
9.35 	~~any position is void. No special marking may be used on the ballot to indicate incumbents.~~ 
9.36 	~~The last day for mailing ballots to the fund is January 31. Terms expire on January 31 of~~ 
10.1 	~~the fourth year, and positions are vacant until newly elected members are qualified. The~~ 
10.2 	~~ballot envelopes must be so designed and the ballots counted in a manner that ensures~~ 
10.3 	~~that each vote is secret.~~
10.4 	(e) The secretary of state shall ~~supervise~~ review and approve the procedures defined 
10.5 	by the board of trustees for conducting the elections specified in this subdivision, including 
10.6 	board policies adopted under paragraph (b). 
10.7 	(f) The board of trustees and the executive director shall undertake their activities 
10.8 	consistent with chapter 356A.

10.9 	Sec. 9. Minnesota Statutes 2004, section 353.03, subdivision 1a, is amended to read:
10.10 		Subd. 1a.Vacancy, how filled. Any vacancy on the board caused by death, 
10.11 	resignation, or removal of any trustee, or occurring because an elected trustee ceases to be 
10.12 	a public employee and an active member of the association, must be filled by the board 
10.13 	for trustees elected by members, and by the governor for other trustees, for the unexpired 
10.14 	portion of the term in which the vacancy occurs. The board shall adopt policies and 
10.15 	procedures governing how the vacancy of an elected trustee is to be filled.

10.16 	Sec. 10. Minnesota Statutes 2004, section 353.03, is amended by adding a subdivision 
10.17 	to read:
10.18 		Subd. 2b.Board legal authority. The board is authorized to take legal action when 
10.19 	necessary to effectively administer the various plans administered by the association, 
10.20 	consistent with applicable articles of incorporation, bylaws, law, and rules, as applicable, 
10.21 	and including but not limited to the recapture of overpaid annuities, benefits, or refunds, 
10.22 	and the correction of omitted or deficient deductions.

10.23 	Sec. 11. Minnesota Statutes 2004, section 353.27, subdivision 7, is amended to read:
10.24 		Subd. 7.Adjustment for erroneous receipts or disbursements. (a) Except 
10.25 	as provided in paragraph (b), erroneous employee deductions and erroneous employer 
10.26 	contributions and additional employer contributions for a person, who otherwise does not 
10.27 	qualify for membership under this chapter, are considered:
10.28 	(1) valid if the initial erroneous deduction began before January 1, 1990. Upon 
10.29 	determination of the error by the association, the person may continue membership in the 
10.30 	association while employed in the same position for which erroneous deductions were 
10.31 	taken, or file a written election to terminate membership and apply for a refund upon 
10.32 	termination of public service or defer an annuity under section   353.34; or 
11.1 	(2) invalid, if the initial erroneous employee deduction began on or after January 
11.2 	1, 1990. Upon determination of the error, the association shall ~~require the employer~~ 
11.3 	~~to discontinue erroneous employee deductions and erroneous employer contributions~~ 
11.4 	~~and additional employer contributions. Upon discontinuance, the association shall~~ 
11.5 	refund all erroneous employee deductions ~~to the person, with interest, under section~~ 
11.6 	~~353.34, subdivision 2,~~ and all erroneous employer contributions ~~and additional employer~~ 
11.7 	~~contributions to the employer~~ as specified in paragraph (d). No person may claim a right 
11.8 	to continued or past membership in the association based on erroneous deductions which 
11.9 	began on or after January 1, 1990. 
11.10 	(b) Erroneous deductions taken from the salary of a person who did not qualify 
11.11 	for membership in the association by virtue of concurrent employment before July 1, 
11.12 	1978, which required contributions to another retirement fund or relief association 
11.13 	established for the benefit of officers and employees of a governmental subdivision, are 
11.14 	invalid. Upon discovery of the error, the association shall remove all  invalid service and 
11.15 	upon termination of public service, the association shall refund all erroneous employee 
11.16 	deductions to the person, with interest under section   353.34, subdivision 2, and all 
11.17 	erroneous employer contributions to the employer. This paragraph has both retroactive 
11.18 	and prospective application. 
11.19 	(c) Employer contributions and employee deductions taken in error from amounts 
11.20 	which are not salary under section   353.01, subdivision 10, are invalid upon discovery by 
11.21 	the association and ~~may~~ must be refunded ~~at any time~~ as specified in paragraph (d). 
11.22 	(d) Upon discovery of the receipt of erroneous deductions and contributions under 
11.23 	paragraph (a), clause (2), or paragraph (c), the association must require the employer to 
11.24 	discontinue the erroneous employee deductions and erroneous employer contributions. 
11.25 	Upon discontinuation, the association must refund the invalid employee deductions to the 
11.26 	person without interest and invalid employer contributions to the employer or provide a 
11.27 	credit against future contributions payable by the employer for the amount of all erroneous 
11.28 	deductions and contributions.  In the event a retirement annuity or disability benefit had 
11.29 	been computed using invalid service or salary, the association must adjust the annuity or 
11.30 	benefit and recover the overpayment under subdivision 7b.
11.31 	(e) In the event a salary warrant or check from which a deduction for the retirement 
11.32 	fund was taken has been canceled or the amount of the warrant or check returned to the 
11.33 	funds of the department making the payment, a refund of the sum deducted, or a portion of 
11.34 	it that is required to adjust the deductions, must be made to the department or institution.
11.35 	(f) Any refund to a member under this subdivision that would cause the plan to fail 
11.36 	to be a qualified plan under section 401(a) of the Internal Revenue Code, as amended, may 
12.1 	not be refunded and instead must be credited against future contributions payable by the 
12.2 	employer.  The employer receiving the credit is responsible for refunding to the applicable 
12.3 	employee any amount that had been erroneously deducted from the person's salary.

12.4 	Sec. 12. Minnesota Statutes 2004, section 353.27, subdivision 7a, is amended to read:
12.5 		Subd. 7a.Deductions or contributions transmitted by error. (a) If employee 
12.6 	deductions and employer contributions were erroneously transmitted to the association, 
12.7 	but should have been transmitted to another Minnesota public pension plan, the 
12.8 	association shall transfer the erroneous employee deductions and employer contributions 
12.9 	to the appropriate retirement fund or individual account, as applicable, without interest. 
12.10 	The time limitations in subdivisions 7 and 12 do not apply.
12.11 	(b) For purposes of this subdivision, a Minnesota public pension plan means a 
12.12 	plan specified in section   356.30, subdivision 3, or the ~~plan~~ plans governed by ~~chapter~~
12.13 	chapters 353D and 354B. 

12.14 	Sec. 13. Minnesota Statutes 2004, section 353.27, subdivision 7b, is amended to read:
12.15 		Subd. 7b.Overpayments to members. In the event of an overpayment to a 
12.16 	member, retiree, beneficiary, or other person, the executive director shall recover the 
12.17 	overpayment by suspending or reducing the payment of a retirement annuity, refund, 
12.18 	disability benefit, survivor benefit, or optional annuity under this chapter until all 
12.19 	outstanding money has been recovered.

12.20 	Sec. 14. Minnesota Statutes 2005 Supplement, section 353.28, subdivision 6, is 
12.21 	amended to read:
12.22 		Subd. 6.Collection of unpaid amounts. (a) If a governmental subdivision which 
12.23 	receives the direct proceeds of property taxation fails to pay an amount due under chapter 
12.24 	353, 353A, 353B, 353C, or 353D, the executive director shall certify the amount to the 
12.25 	governmental subdivision for payment. If the governmental subdivision fails to remit the 
12.26 	sum so due in a timely fashion, the executive director shall certify the amount to the 
12.27 	applicable county auditor for collection. The county auditor shall collect the amount 
12.28 	out of the revenue of the governmental subdivision, or shall add the amount to the levy 
12.29 	of the governmental subdivision and make payment directly to the association. This 
12.30 	tax must be levied, collected, and apportioned in the manner that other taxes are levied, 
12.31 	collected, and apportioned.
12.32 	(b) If a governmental subdivision which is not funded directly from the proceeds 
12.33 	of property taxation fails to pay an amount due under this chapter, the executive director 
13.1 	shall certify the amount to the governmental subdivision for payment. If the governmental 
13.2 	subdivision fails to pay the amount for a period of 60 days after certification, the executive 
13.3 	director shall certify the amount to the commissioner of finance, who shall deduct the 
13.4 	amount from any subsequent state-aid payment or state appropriation amount applicable 
13.5 	to the governmental subdivision and make payment directly to the association.

13.6 	Sec. 15. Minnesota Statutes 2004, section 353.29, subdivision 8, is amended to read:
13.7 		Subd. 8.Annuities; payment; evidence of receipt. Payment of any annuity or 
13.8 	benefit for a given month shall be mailed by the association to the annuitant, recipient 
13.9 	of a disability benefit, or survivor, or automatically deposited under section 356.401, 
13.10 	subdivision 2, during the first week of that month. ~~Evidence of receipt of warrants issued~~ 
13.11 	~~by the association in payment of an annuity or benefit shall be submitted by the payee~~ 
13.12 	~~thereof to the association periodically at times specified by the board of trustees, together~~ 
13.13 	~~with a written declaration that the annuitant or recipient of a disability benefit has or~~ 
13.14 	~~has not returned to public service; that the surviving dependent spouse has or has not~~ 
13.15 	~~remarried; and shall be furnished on forms provided by the executive director thereof,~~ 
13.16 	~~before the association shall pay to the disability recipient or survivor for the next ensuing~~ 
13.17 	~~month, the benefit to which the person otherwise may be entitled. In lieu of the evidence~~ 
13.18 	~~of receipt of warrants for recipients of an annuity or a benefit,~~ The board may contract 
13.19 	for professional services to identify deceased annuitants and benefit recipients through a 
13.20 	review of nationally maintained death records.

13.21 	Sec. 16. Minnesota Statutes 2004, section 353.30, subdivision 3a, is amended to read:
13.22 		Subd. 3a.Bounce-back annuity. (a) If a former member or disabilitant selects a 
13.23 	joint and survivor annuity option under subdivision 3 on or after July 1, 1989, the former 
13.24 	member or disabilitant must receive a normal single life annuity if the designated optional 
13.25 	annuity beneficiary dies before the former member or disabilitant. Under this option, no 
13.26 	reduction may be made in the person's annuity to provide for restoration of the normal 
13.27 	single life annuity in the event of the death of the designated optional annuity beneficiary.
13.28 	(b) ~~A former member or disabilitant who selected an optional joint and survivor~~ 
13.29 	~~annuity before July 1, 1989, but did not choose an option that provides that the normal~~ 
13.30 	~~single life annuity is payable to the former member or the disabilitant if the designated~~ 
13.31 	~~optional annuity beneficiary dies first, is eligible for restoration of the normal single life~~ 
13.32 	~~annuity if the designated optional annuity beneficiary dies first, without further actuarial~~ 
13.33 	~~reduction of the person's annuity. A former member or disabilitant who selected an~~ 
13.34 	~~optional joint and survivor annuity, but whose designated optional annuity beneficiary died~~ 
14.1 	~~before July 1, 1989, shall receive a normal single life annuity after that date, but shall not~~ 
14.2 	~~receive retroactive payments for periods before that date~~ The annuity adjustment specified 
14.3 	in paragraph (a) also applies to joint and survivor annuity options under subdivision 
14.4 	3 elected prior to July 1, 1989.  The annuity adjustment under this paragraph occurs on 
14.5 	July 1, 1989, or on the first day of the first month following the death of the designated 
14.6 	optional annuity beneficiary, whichever is later.  This paragraph should not be interpreted 
14.7 	as authorizing retroactive payments.
14.8 	~~(c) A former member or disabilitant who took a further actuarial reduction to elect~~ 
14.9 	~~an optional joint and survivor annuity that provides that the normal annuity is payable to~~ 
14.10 	~~the former member or disabilitant if the designated optional beneficiary dies first but has~~ 
14.11 	~~not died before July 1, 1989, shall have their annuity increased as of July 1, 1989, to the~~ 
14.12 	~~amount the person would have received if, at the time of retirement or disability, the person~~ 
14.13 	~~had selected only optional survivor coverage that would not have provided for restoration~~ 
14.14 	~~of the normal annuity upon the death of the designated optional annuity beneficiary. Any~~ 
14.15 	~~annuity or benefit increase under this paragraph is effective only for payments made after~~ 
14.16 	~~June 30, 1989, and is not retroactive for payments made before July 1, 1989.~~

14.17 	Sec. 17. Minnesota Statutes 2004, section 353.30, subdivision 3b, is amended to read:
14.18 		Subd. 3b.Bounce-back annuity. (a) The board of trustees must provide a joint 
14.19 	and survivor annuity option to members of the police and fire fund. ~~Under this option, a~~
14.20 	If a joint and survivor annuity is elected on or after July 1, 1989, the former member or 
14.21 	disabilitant must receive a normal single life annuity if the designated optional annuity 
14.22 	beneficiary dies before the former member or disabilitant. Under this option, no reduction 
14.23 	may be made in the person's annuity to provide for restoration of the normal single life 
14.24 	annuity in the event of the death of the designated optional annuity beneficiary.
14.25 	(b) ~~A former member or disabilitant of the police and fire fund who selected an~~ 
14.26 	~~optional joint and survivor annuity before July 1, 1989, but did not choose an option~~ 
14.27 	~~that provides that the normal single life annuity is payable to the former member or~~ 
14.28 	~~the disabilitant if the designated optional annuity beneficiary dies first, is eligible for~~ 
14.29 	~~restoration of the normal single life annuity if the designated optional annuity beneficiary~~ 
14.30 	~~dies first, without further actuarial reduction of the person's annuity. A former member~~ 
14.31 	~~or disabilitant who selected an optional joint and survivor annuity, but whose designated~~ 
14.32 	~~optional annuity beneficiary died before July 1, 1989, shall receive a normal single life~~ 
14.33 	~~annuity after that date, but shall not receive retroactive payments for periods before that~~ 
14.34 	~~date~~ The annuity adjustment specified in paragraph (a) also applies to joint and survivor 
14.35 	annuity options under subdivision 3 elected prior to July 1, 1989.  The annuity adjustment 
15.1 	under this paragraph occurs on July 1, 1989, or on the first day of the first month following 
15.2 	the death of the designated optional annuity beneficiary, whichever is later.  This paragraph 
15.3 	should not be interpreted as authorizing retroactive payments.
15.4 	~~(c) A former member or disabilitant who took a further actuarial reduction to elect~~ 
15.5 	~~an optional joint and survivor annuity that provides that the normal annuity is payable to~~ 
15.6 	~~the former member or disabilitant if the designated optional beneficiary dies first but has~~ 
15.7 	~~not died before July 1, 1989, shall have their annuity increased as of July 1, 1989, to the~~ 
15.8 	~~amount the person would have received if, at the time of retirement or disability, the person~~ 
15.9 	~~had selected only optional survivor coverage that would not have provided for restoration~~ 
15.10 	~~of the normal annuity upon the death of the designated optional annuity beneficiary. Any~~ 
15.11 	~~annuity or benefit increase under this paragraph is effective only for payments made after~~ 
15.12 	~~June 30, 1989, and is not retroactive for payments made before July 1, 1989.~~

15.13 	Sec. 18. Minnesota Statutes 2004, section 353.32, subdivision 1a, is amended to read:
15.14 		Subd. 1a.Surviving spouse optional annuity. (a) If a member or former member 
15.15 	who has credit for not less than three years of allowable service and dies before the 
15.16 	annuity or disability benefit begins to accrue under section  353.29, subdivision 7, or  
15.17 	353.33, subdivision 2, notwithstanding any designation of beneficiary to the contrary, the 
15.18 	surviving spouse may elect to receive, instead of a refund with interest under subdivision 
15.19 	1, or surviving spouse benefits otherwise payable under section  353.31, an annuity equal 
15.20 	to the 100 percent joint and survivor annuity that the member could have qualified for 
15.21 	had the member terminated service on the date of death. 
15.22 	(b) If the member was under age 55 and has credit for at least 30 years of allowable 
15.23 	service on the date of death, the surviving spouse may elect to receive a 100 percent joint 
15.24 	and survivor annuity based on the age of the member and surviving spouse on the date 
15.25 	of death. The annuity is payable using the full early retirement reduction under section  
15.26 	353.30, subdivisions 1b and 1c, to age 55 and one-half of the early retirement reduction 
15.27 	from age 55 to the age payment begins. 
15.28 	(c) If the member was under age 55 and has credit for at least three years of 
15.29 	allowable service on the date of death but did not qualify for retirement, the surviving 
15.30 	spouse may elect to receive the 100 percent joint and survivor annuity based on the age of 
15.31 	the member and surviving spouse at the time of death. The annuity is payable using the 
15.32 	full early retirement reduction under section  353.30, subdivision 1, 1b, 1c, or 5, to age 55 
15.33 	and one-half of the early retirement reduction from age 55 to the age payment begins. 
15.34 	(d) Notwithstanding the definition of surviving spouse in section  353.01, subdivision 
15.35 	20, a former spouse of the member, if any, is entitled to a portion of the monthly surviving 
16.1 	spouse optional annuity if stipulated under the terms of a marriage dissolution decree filed 
16.2 	with the association. If there is no surviving spouse or child or children, a former spouse 
16.3 	may be entitled to a lump-sum refund payment under subdivision 1, if provided for in a 
16.4 	marriage dissolution decree but not a monthly surviving spouse optional annuity despite 
16.5 	the terms of a marriage dissolution decree filed with the association. 
16.6 	(e) The surviving spouse eligible for surviving spouse benefits under paragraph (a) 
16.7 	may apply for the annuity at any time after the date on which the deceased employee 
16.8 	would have attained the required age for retirement based on the employee's allowable 
16.9 	service. The surviving spouse eligible for surviving spouse benefits under paragraph (b) 
16.10 	or (c) may apply for an annuity any time after the member's death. The annuity must be 
16.11 	computed under sections  353.29, subdivisions 2 and 3;  and 353.30, subdivisions 1, 1a, 
16.12 	1b, 1c, and 5~~; and  353.31, subdivision 3~~. 
16.13 	(f) Sections  353.34, subdivision 3, and  353.71, subdivision 2, apply to a deferred 
16.14 	annuity or surviving spouse benefit payable under this subdivision. No payment may 
16.15 	accrue beyond the end of the month in which entitlement to the annuity has terminated 
16.16 	or upon expiration of the term certain benefit payment under subdivision 1b. An amount 
16.17 	equal to any excess of the accumulated contributions that were credited to the account of 
16.18 	the deceased employee over and above the total of the annuities paid and payable to the 
16.19 	surviving spouse must be paid to the ~~deceased member's last designated beneficiary or, if~~ 
16.20 	~~none, as specified under subdivision 1~~ surviving spouse's estate. 
16.21 	(g) A member may specify in writing that this subdivision does not apply and that 
16.22 	payment may be made only to the designated beneficiary as otherwise provided by this 
16.23 	chapter. The waiver of a surviving spouse annuity under this section does not make a 
16.24 	dependent child eligible for benefits under subdivision 1c. 

16.25 	Sec. 19. Minnesota Statutes 2004, section 353.32, subdivision 1b, is amended to read:
16.26 		Subd. 1b.Survivor coverage term certain. (a) In lieu of the 100 percent optional 
16.27 	annuity under subdivision 1a, or a refund under subdivision 1, the surviving spouse of 
16.28 	a deceased member may elect to receive survivor coverage for a term certain of ~~five,~~ 
16.29 	ten, 15, or 20 years, but monthly payments must not exceed 75 percent of the average 
16.30 	high-five monthly salary of the deceased member. The monthly term certain annuity must 
16.31 	be actuarially equivalent to the 100 percent optional annuity under subdivision 1a.
16.32 	(b) If a surviving spouse elects a term certain annuity and dies before the expiration 
16.33 	of the specified term certain period, the commuted value of the remaining annuity 
16.34 	payments must be paid in a lump sum to the survivor's estate.

17.1 	Sec. 20. Minnesota Statutes 2004, section 353.33, subdivision 1, is amended to read:
17.2 		Subdivision 1.Age, service, and salary requirements. A coordinated member 
17.3 	who has at least three years of allowable service and becomes totally and permanently 
17.4 	disabled before normal retirement age, and a basic member who has at least three years 
17.5 	of allowable service and who becomes totally and permanently disabled is entitled to a 
17.6 	disability benefit in an amount determined under subdivision 3. If the disabled person's 
17.7 	public service has terminated at any time, at least two of the required three years of 
17.8 	allowable service must have been rendered after last becoming ~~a~~an active member. A 
17.9 	repayment of a refund must be made within six months after the effective date of disability 
17.10 	benefits under subdivision 2 or within six months after the date of the filing of the 
17.11 	disability application, whichever is later. No purchase of prior service or payment made 
17.12 	in lieu of salary deductions otherwise authorized under section  353.01, subdivision 16,  
17.13 	~~353.017, subdivision 4, or  353.36, subdivision 2,~~ may be made after the occurrence of the 
17.14 	disability for which an application under this section is filed. 

17.15 	Sec. 21. Minnesota Statutes 2004, section 353.33, subdivision 9, is amended to read:
17.16 		Subd. 9.Return to ~~public service~~ employment. (a) Any person receiving a 
17.17 	disability benefit under this section who is restored to ~~active public service except persons~~ 
17.18 	~~receiving benefits as provided in~~ employment not covered by subdivision 7~~,~~ or 7a shall 
17.19 	have the disability benefit discontinued on the first day of the month following the return 
17.20 	to employment.
17.21 	(b) If the person is employed by a governmental subdivision as defined under 
17.22 	section 353.01, subdivision 6, deductions must be taken for the retirement fund and upon 
17.23 	subsequent retirement have the retirement annuity payable based upon all allowable 
17.24 	service including that upon which the disability benefits were based.
17.25 	(c) If the employment is not through public service covered under this chapter, the 
17.26 	account may be placed on a deferred status and the subsequent retirement annuity will 
17.27 	be calculated as provided in section 353.34, subdivision 3, if the person meets the length 
17.28 	of allowable service requirement stated in that subdivision; or the person may request a 
17.29 	refund of any remaining employee deductions. The refund shall be in an amount equal 
17.30 	to the accumulated employee deductions plus six percent interest compounded annually 
17.31 	less the sum of the disability benefits paid to the member.

17.32 	Sec. 22. [353.335] DISABILITANT EARNINGS REPORTS.
17.33 	Disability benefit recipients must report all earnings from reemployment and income 
17.34 	from workers' compensation to the association annually by May 15 in a format prescribed 
18.1 	by  the executive director.  If the form is not submitted by May 15, benefits will be 
18.2 	suspended effective June 1.  Upon receipt of the form, if the disability benefit recipient 
18.3 	is deemed to be eligible for continued payment, benefits will be reinstated retroactive 
18.4 	to June 1.

18.5 	Sec. 23. Minnesota Statutes 2004, section 353.34, subdivision 1, is amended to read:
18.6 		Subdivision 1.Refund or deferred annuity. (a) A former member is entitled 
18.7 	to a refund of accumulated employee deductions under subdivision 2, or to a deferred 
18.8 	annuity under subdivision 3. Application for a refund may not be made prior to the date 
18.9 	of termination of public service ~~or the termination of membership, whichever is sooner~~. 
18.10 	Except as specified in paragraph (b), a refund must be paid within 120 days following 
18.11 	receipt of the application unless the applicant has again become a public employee 
18.12 	required to be covered by the association.
18.13 	(b) If an individual was ~~granted an authorized temporary~~ placed on layoff under 
18.14 	subdivision 12 or 12c, a refund is not payable before termination of ~~membership~~ service 
18.15 	under ~~section  353.01, subdivision 11b, clause (3)~~ subdivision 11a. 
18.16 	(c) An individual who terminates public service covered by the Public Employees 
18.17 	Retirement Association general plan, the Public Employees Retirement Association police 
18.18 	and fire plan, or the public employees local government corrections service retirement 
18.19 	plan, and who is employed by a different employer and becomes an active member 
18.20 	covered by one of the other two plans, may receive a refund of employee contributions 
18.21 	plus six percent interest compounded annually from the plan in which the member 
18.22 	terminated service.

18.23 	Sec. 24. Minnesota Statutes 2004, section 353.656, subdivision 4, is amended to read:
18.24 		Subd. 4.Limitation on disability benefit payments. (a) No member is entitled to 
18.25 	receive a disability benefit payment when there remains to the member's credit unused 
18.26 	annual leave or sick leave or under any other circumstances when, during the period of 
18.27 	disability, there has been no impairment of the person's salary as a police officer ~~or~~, a 
18.28 	firefighter, or a paramedic as defined in section 353.64, subdivision 10, whichever applies.
18.29 	(b) If a disabled member resumes a gainful occupation with earnings ~~less than~~, 
18.30 	that when added to the normal disability benefit, and workers' compensation benefit 
18.31 	if applicable, exceed the disabilitant reemployment earnings limit, the amount of the 
18.32 	disability benefit must be reduced as provided in this paragraph. The disabilitant 
18.33 	reemployment earnings limit is the greater of:
18.34 	(1) the salary earned at the date of disability; or
19.1 	(2) 125 percent of the base salary currently paid by the employing governmental 
19.2 	subdivision for similar positions.
19.3 	The disability benefit must be reduced by one dollar for each three dollars by which 
19.4 	the total amount of the current disability benefit, any workers' compensation benefits if 
19.5 	applicable, and actual earnings exceed the greater disabilitant reemployment earnings 
19.6 	limit. In no event may the disability benefit as adjusted under this subdivision exceed 
19.7 	the disability benefit originally allowed.

19.8 	Sec. 25. Minnesota Statutes 2004, section 353D.01, subdivision 2, is amended to read:
19.9 		Subd. 2.Eligibility. (a) Eligibility to participate in the defined contribution plan 
19.10 	is available to:
19.11 	(1) elected local government officials of a governmental subdivision who elect to 
19.12 	participate in the plan under section  353D.02, subdivision 1, and who, for the elected 
19.13 	service rendered to a governmental subdivision, are not members of the Public Employees 
19.14 	Retirement Association within the meaning of section  353.01, subdivision 7; 
19.15 	(2) physicians who, if they did not elect to participate in the plan under section  
19.16 	353D.02, subdivision 2, would meet the definition of member under section  353.01, 
19.17 	subdivision 7; 
19.18 	(3) basic and advanced life support emergency medical service personnel employed 
19.19 	by ~~or providing services for~~ any public ambulance service ~~or privately operated ambulance~~ 
19.20 	~~service that receives an operating subsidy from a governmental entity~~ that elects to 
19.21 	participate under section  353D.02, subdivision 3; 
19.22 	(4) members of a municipal rescue squad associated with Litchfield in Meeker 
19.23 	County, or of a county rescue squad associated with Kandiyohi County, if an independent 
19.24 	nonprofit rescue squad corporation, incorporated under chapter 317A, performing 
19.25 	emergency management services, and if not affiliated with a fire department or ambulance 
19.26 	service and if its members are not eligible for membership in that fire department's or 
19.27 	ambulance service's relief association or comparable pension plan; and
19.28 	(5) employees of the Port Authority of the city of St. Paul who elect to participate in 
19.29 	the plan under section  353D.02, subdivision 5, and who are not members of the Public 
19.30 	Employees Retirement Association under section  353.01, subdivision 7. 
19.31 	(b) For purposes of this chapter, an elected local government official includes 
19.32 	a person appointed to fill a vacancy in an elective office. Service as an elected local 
19.33 	government official only includes service for the governmental subdivision for which the 
19.34 	official was elected by the public-at-large. Service as an elected local government official 
20.1 	ceases and eligibility to participate terminates when the person ceases to be an elected 
20.2 	official. An elected local government official does not include an elected county sheriff.
20.3 	(c) Individuals otherwise eligible to participate in the plan under this subdivision 
20.4 	who are currently covered by a public or private pension plan because of their employment 
20.5 	or provision of services are not eligible to participate in the public employees defined 
20.6 	contribution plan.
20.7 	(d) A former participant is a person who has terminated eligible employment or 
20.8 	service and has not withdrawn the value of the person's individual account.

20.9 	Sec. 26. Minnesota Statutes 2004, section 353D.02, subdivision 3, is amended to read:
20.10 		Subd. 3.Eligible ambulance service personnel. Each public ambulance service 
20.11 	~~or privately operated ambulance service~~ with eligible personnel ~~that receives an operating~~ 
20.12 	~~subsidy from a governmental entity~~ may elect to participate in the plan. If a service elects 
20.13 	to participate, its eligible personnel may elect to participate or to decline to participate. An 
20.14 	individual's election must be made within 30 days of the service's election to participate 
20.15 	or 30 days of the date on which the individual was employed by the service or began to 
20.16 	provide service for it, whichever date is later. An election by a service or an individual is 
20.17 	revocable.

20.18 	Sec. 27. Minnesota Statutes 2004, section 353E.02, subdivision 2, is amended to read:
20.19 		Subd. 2.Local government correctional service employee. (a) A local 
20.20 	government correctional service employee, for purposes of subdivision 1, is a person 
20.21 	whom the employer certifies:
20.22 	(1) is employed in a county correctional institution as a correctional guard or officer, 
20.23 	a joint jailer/dispatcher, or as a supervisor of correctional guards or officers or of joint 
20.24 	jailers/dispatchers or identical position to the positions listed in this clause as determined 
20.25 	by the employing governmental unit;
20.26 	(2) is directly responsible for the direct security, custody, and control of the county 
20.27 	correctional institution and its inmates;
20.28 	(3) is expected to respond to incidents within the county correctional institution as 
20.29 	part of the person's regular employment duties and is trained to do so; and
20.30 	(4) is a "public employee" as defined in section  353.01, but is not a member of 
20.31 	the public employees police and fire fund. 
20.32 	(b) The certification required under paragraph (a) must be made in ~~writing on~~ a 
20.33 	~~form~~ format prescribed by the executive director of the Public Employees Retirement 
20.34 	Association.
21.1 	(c) A person who was a member of the local government correctional service 
21.2 	retirement plan on May 15, 2000, remains a member of the plan after May 16, 2000, for 
21.3 	the duration of the person's employment in that county correctional institution position, 
21.4 	even if the person's subsequent service in this position does not meet the requirements 
21.5 	set forth in paragraph (a).

21.6 	Sec. 28. Minnesota Statutes 2004, section 353E.02, subdivision 3, is amended to read:
21.7 		Subd. 3.County correctional institution. A county correctional institution is:
21.8 	(1) a jail administered by a county;
21.9 	(2) a correctional facility administered by a county; ~~or~~
21.10 	(3) a regional correctional facility administered by or on behalf of multiple counties; 
21.11 	or
21.12 	(4) a juvenile correctional facility administered by a county or on behalf of multiple 
21.13 	counties.

21.14 	Sec. 29. Laws 2004, chapter 267, article 8, section 41, is amended to read:
21.15 	Sec. 41.  [REPEALER.]  
21.16 	
21.17 	(a) Minnesota Statutes 2002, sections 353.33, subdivision  5b; and 490.11, are 
21.18 	repealed on July 1, 2004.  
21.19 	
21.20 	(b) ~~Sections~~ Section 3 ~~and 19 are~~ is repealed on July 1, 2006.  

21.21 	Sec. 30. EFFECTIVE DATE.
 21.22 	Sections 1 to 29 are effective July 1, 2006.