1.1 	A bill for an act
1.2 	relating to retirement; Teachers Retirement Association; increasing member and 
1.3 	employer contribution rates; temporarily suspending and temporarily reducing 
1.4 	postretirement adjustment amounts; reducing interest on refunds; eliminating 
1.5 	interest on reemployed annuitant earnings limitation account deferral amount 
1.6 	payments; reducing deferred annuities augmentation rates; amending Minnesota 
1.7 	Statutes 2008, sections 354.42, subdivision 3, by adding subdivisions; 356.47, 
1.8 	subdivision 3; Minnesota Statutes 2009 Supplement, sections 354.42, subdivision 
1.9 	2; 354.47, subdivision 1; 354.49, subdivision 2; 354.55, subdivision 11; 356.415, 
1.10 	subdivision 1, by adding a subdivision.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. Minnesota Statutes 2009 Supplement, section 354.42, subdivision 2, is 
1.13 	amended to read:
1.14 		Subd. 2.Employee contribution. (a) For a basic member, the employee 
1.15 	contribution to the fund is ~~9.0 percent~~the following percentage of the member's salary~~.~~:

1.16 | | before July 1, 2011 | 9.0 percent
1.17 | | from July 1, 2011, until June 30, 2012 | 9.5 percent
1.18 | | from July 1, 2012, until June 30, 2013 | 10.0 percent
1.19 | | from July 1, 2013, until June 30, 2014 | 10.5 percent
1.20 | | after June 30, 2014 | 11.0 percent
1.21 	(b) For a coordinated member, the employee contribution is ~~5.5 percent~~ the following 
1.22 	percentage of the member's salary~~.~~:

1.23 | | before July 1, 2011 | 5.5 percent
1.24 | | from July 1, 2011, until June 30, 2012 | 6.0 percent
1.25 | | from July 1, 2012, until June 30, 2013 | 6.5 percent
1.26 | | from July 1, 2013, until June 30, 2014 | 7.0 percent
1.27 | | after June 30, 2014 | 7.5 percent
2.1 	(c) When an employee contribution rate changes for a fiscal year, the new 
2.2 	contribution rate is effective for the entire salary paid for each employer unit with the 
2.3 	first payroll cycle reported.
2.4 	(d) After June 30, 2015, if a contribution rate revision is required under subdivisions 
2.5 	4a, 4b, and 4c, the employee contributions under paragraphs (a) and (b) must be adjusted 
2.6 	accordingly.
2.7 	~~(b)~~(e) This contribution must be made by deduction from salary. Where any portion 
2.8 	of a member's salary is paid from other than public funds, the member's employee 
2.9 	contribution must be based on the entire salary received.

2.10 	Sec. 2. Minnesota Statutes 2008, section 354.42, subdivision 3, is amended to read:
2.11 		Subd. 3.Employer. (a) The ~~regular employer contribution to the fund by Special~~ 
2.12 	~~School District No. 1, Minneapolis, after July 1, 2006, and before July 1, 2007, is an~~ 
2.13 	~~amount equal to 5.0 percent of the salary of each of its teachers who is a coordinated~~ 
2.14 	~~member and 9.0 percent of the salary of each of its teachers who is a basic member. After~~ 
2.15 	~~July 1, 2007, the~~ regular employer contribution to the fund by Special School District No. 
2.16 	1, Minneapolis, is an amount equal to ~~5.5 percent~~the applicable following percentage of 
2.17 	salary of each coordinated member and ~~9.5 percent~~the applicable following percentage 
2.18 	of salary of each basic member~~.~~:

2.19 | | Period | Coordinated Member | Basic Member
2.20 | | before July 1, 2011 | | 5.5 percent | | 9.5 percent
2.21 | | from July 1, 2011, until June 30, 2012 | | 6.0 percent | | 10.0 percent
2.22 | | from July 1, 2012, until June 30, 2013 | | 6.5 percent | | 10.5 percent
2.23 | | from July 1, 2013, until June 30, 2014 | | 7.0 percent | | 11.0 percent
2.24 | | after June 30, 2014 | | 7.5 percent | | 11.5 percent
2.25 	 The additional employer contribution to the fund by Special School District No. 1, 
2.26 	Minneapolis, ~~after July 1, 2006,~~ is an amount equal to 3.64 percent of the salary of each 
2.27 	teacher who is a coordinated member or is a basic member.
2.28 	(b) The employer contribution to the fund for every other employer is an amount 
2.29 	equal to ~~5.0 percent~~the applicable following percentage of the salary of each coordinated 
2.30 	member and ~~9.0 percent~~the applicable following percentage of the salary of each basic 
2.31 	member ~~before July 1, 2007, and 5.5 percent of the salary of each coordinated member~~ 
2.32 	~~and 9.5 percent of the salary of each basic member after June 30, 2007.~~:

2.33 | | Period | Coordinated Member | Basic Member
2.34 | | before July 1, 2011 | | 5.5 percent | | 9.5 percent
2.35 | | from July 1, 2011, until June 30, 2012 | | 6.0 percent | | 10.0 percent
2.36 | | from July 1, 2012, until June 30, 2013 | | 6.5 percent | | 10.5 percent
3.1 | | from July 1, 2013, until June 30, 2014 | | 7.0 percent | | 11.0 percent
3.2 | | after June 30, 2014 | | 7.5 percent | | 11.5 percent
3.3 	(c) When an employer contribution rate changes for a fiscal year, the new 
3.4 	contribution rate is effective for the entire salary paid for each employer unit with the 
3.5 	first payroll cycle reported.
3.6 	(d) After June 30, 2015, if a contribution rate revision is made under subdivisions 
3.7 	4a, 4b, and 4c, the employer contributions under paragraphs (a) and (b) must be adjusted 
3.8 	accordingly.

3.9 	Sec. 3. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision 
3.10 	to read:
3.11 		Subd. 4a.Determination. (a) For purposes of this section, a contribution 
3.12 	sufficiency exists if the total of the employee contributions, the employer contributions, 
3.13 	and any additional employer contributions, if applicable, exceeds the total of the normal 
3.14 	cost, the administrative expenses, and the amortization contribution of the retirement plan 
3.15 	as reported in the most recent actuarial valuation of the retirement plan prepared by the 
3.16 	approved actuary retained under section 356.214 and prepared under section 356.215 
3.17 	and the standards for actuarial work of the Legislative Commission on Pensions and 
3.18 	Retirement.
3.19 	(b) For purposes of this section, a contribution deficiency exists if the total of 
3.20 	the employee contributions, the employer contributions, and any additional employer 
3.21 	contributions are less than the total of the normal cost, the administrative expenses, and 
3.22 	the amortization contribution of the retirement plan as reported in the most recent actuarial 
3.23 	valuation of the retirement plan prepared by the approved actuary retained under section 
3.24 	356.214 and prepared under section 356.215 and the standards for actuarial work of the 
3.25 	Legislative Commission on Pensions and Retirement.

3.26 	Sec. 4. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision 
3.27 	to read:
3.28 		Subd. 4b.Contribution rate revision. Notwithstanding the contribution rate 
3.29 	provisions under subdivisions 2 and 3, the employee and employer contribution rates 
3.30 	may be adjusted as follows:
3.31 	(1) if, after June 30, 2015, the regular actuarial valuation of the plan under section 
3.32 	356.215 indicates that there is a contribution sufficiency under subdivision 4a equal to 
3.33 	or greater than one percent of covered payroll and the sufficiency has existed for at least 
3.34 	two consecutive years, the employee and employer contribution rates for the plan may 
4.1 	each be decreased to a level such that the sufficiency equals no more than one percent of 
4.2 	covered payroll based on the most recent actuarial valuation; or
4.3 	(2) if, after June 30, 2015, the regular valuation of the plan under section 356.215 
4.4 	indicates that there is a deficiency equal to or greater than 0.25 percent of covered payroll 
4.5 	and the deficiency has existed for at least two consecutive years, the employee and 
4.6 	employer contribution rates for the applicable plan may each be increased by:
4.7 	(i) 0.25 percent if the deficiency is less than 2.00 percent of covered payroll;
4.8 	(ii) 0.5 percent if the deficiency is equal to or greater than 2.00 percent of covered 
4.9 	payroll and less than or equal to four percent; and
4.10 	(iii) 0.75 percent if the deficiency is greater than four percent.

4.11 	Sec. 5. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision 
4.12 	to read:
4.13 		Subd. 4c.Contribution sufficiency measures. (a) A contribution sufficiency of up 
4.14 	to one percent of covered payroll must be held in reserve to be used to offset any future 
4.15 	actuarially required contributions that are more than the total combined employee and 
4.16 	employer contributions being collected.
4.17 	(b) Before any reduction in contributions to eliminate a sufficiency in excess of one 
4.18 	percent of covered pay may be recommended, the executive director must review any 
4.19 	need for a change in actuarial assumptions, as recommended by the actuary retained 
4.20 	under section 356.214 in the most recent experience study of the retirement plan, that 
4.21 	may result in an increase in the actuarially required contribution and must report to the 
4.22 	Legislative Commission on Pensions and Retirement any recommendation by the board 
4.23 	to use the sufficiency exceeding one percent of covered payroll to offset the impact of 
4.24 	an actuarial assumption change recommended by the actuary retained under section 
4.25 	356.214, subdivision 1, and reviewed by the actuary retained by the commission under 
4.26 	section 356.214, subdivision 4.
4.27 	(c) A contribution sufficiency in excess of one percent of covered pay must not be 
4.28 	used to increase benefits, and a benefit increase must not be proposed that would initiate 
4.29 	an automatic adjustment under this section to increase contributions. A proposed benefit 
4.30 	improvement must include a recommendation, prepared by the actuary retained under 
4.31 	section 356.214, subdivision 1, and reviewed by the actuary retained by the Legislative 
4.32 	Commission on Pensions and Retirement, as provided under section 356.214, subdivision 
4.33 	4, on the manner in which the benefit modification is to be funded.

5.1 	Sec. 6. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision 
5.2 	to read:
5.3 		Subd. 4d.Reporting; commission review. A contribution rate increase or decrease 
5.4 	under subdivision 4b, as determined by the executive director of the Teachers Retirement 
5.5 	Association, must be reported to the chair and the executive director of the Legislative 
5.6 	Commission on Pensions and Retirement on or before the next February 1 and, if the 
5.7 	Legislative Commission on Pensions and Retirement does not recommend against the rate 
5.8 	change or does not recommend a modification in the rate change, is effective on the next 
5.9 	July 1 following the determination by the executive director that a contribution deficiency 
5.10 	or sufficiency exists based on the most recent actuarial valuation under section 356.215.

5.11 	Sec.7. Minnesota Statutes 2009 Supplement, section 354.47, subdivision 1, is amended 
5.12 	to read:
5.13 		Subdivision 1.Death before retirement. (a) If a member dies before retirement 
5.14 	and is covered under section 354.44, subdivision 2, and neither an optional annuity, nor a 
5.15 	reversionary annuity, nor a benefit under section 354.46, subdivision 1, is payable to the 
5.16 	survivors if the member was a basic member, then the surviving spouse, or if there is no 
5.17 	surviving spouse, the designated beneficiary is entitled to an amount equal to the member's 
5.18 	accumulated deductions with interest credited to the account of the member to the date of 
5.19 	death of the member. If the designated beneficiary is a minor, interest must be credited to 
5.20 	the date the beneficiary reaches legal age, or the date of receipt, whichever is earlier. 
5.21 	(b) If a member dies before retirement and is covered under section 354.44, 
5.22 	subdivision 6, and neither an optional annuity, nor reversionary annuity, nor the benefit 
5.23 	described in section 354.46, subdivision 1, is payable to the survivors if the member 
5.24 	was a basic member, then the surviving spouse, or if there is no surviving spouse, then 
5.25 	the designated beneficiary is entitled to ~~an amount equal to the member's accumulated~~ 
5.26 	~~deductions credited to the account of the member as of June 30, 1957, and from July 1,~~ 
5.27 	~~1957, to the date of death of the member, the member's accumulated deductions plus six~~ 
5.28 	~~percent interest compounded annually.~~a refund equal to the accumulated deductions 
5.29 	credited to the member's account plus interest compounded annually until the member's 
5.30 	date of death using the following interest rates:
5.31 	(1) before July 1, 1957, no interest accrues;
5.32 	(2) July 1, 1957, to June 30, 2011, six percent; and
5.33 	(3) after June 30, 2011, four percent.
6.1 	(c) If the designated beneficiary under paragraph (b) is a minor, any interest credited 
6.2 	under that paragraph must be credited to the date the beneficiary reaches legal age, or 
6.3 	the date of receipt, whichever is earlier.
6.4 	(d) The amount of any refund payable under this subdivision must be reduced by 
6.5 	any permanent disability payment under section 354.48 received by the member.

6.6 	Sec. 8. Minnesota Statutes 2009 Supplement, section 354.49, subdivision 2, is 
6.7 	amended to read:
6.8 		Subd. 2.Calculation. (a) Except as provided in section 354.44, subdivision 1, 
6.9 	any person who ceases to be a member by reason of termination of teaching service, is 
6.10 	entitled to receive a refund in an amount equal to the accumulated deductions credited 
6.11 	to the account ~~as of June 30, 1957, and after July 1, 1957, the accumulated deductions~~ 
6.12 	~~with interest at the rate of six percent per annum compounded annually.~~plus interest 
6.13 	compounded annually using the following interest rates:
6.14 	(1) before July 1, 1957, no interest accrues;
6.15 	(2) July 1, 1957, to June 30, 2011, six percent; and
6.16 	(3) after June 30, 2011, four percent.
6.17 	For the purpose of this subdivision, interest must be computed on fiscal year end 
6.18 	balances to the first day of the month in which the refund is issued. 
6.19 	(b) If the person has received permanent disability payments under section 354.48, 
6.20 	the refund amount must be reduced by the amount of those payments.

6.21 	Sec. 9. Minnesota Statutes 2009 Supplement, section 354.55, subdivision 11, is 
6.22 	amended to read:
6.23 		Subd. 11.Deferred annuity; augmentation. (a) Any person covered under section 
6.24 	354.44, subdivision 6, who ceases to render teaching service, may leave the person's 
6.25 	accumulated deductions in the fund for the purpose of receiving a deferred annuity 
6.26 	at retirement. 
6.27 	(b) The amount of the deferred retirement annuity is determined by section 354.44, 
6.28 	subdivision 6, and augmented as provided in this subdivision. The required reserves for 
6.29 	the annuity which had accrued when the member ceased to render teaching service must 
6.30 	be augmented, as further specified in this subdivision, by the applicable interest rate 
6.31 	compounded annually from the first day of the month following the month during which 
6.32 	the member ceased to render teaching service to the effective date of retirement.
6.33 	(c) No augmentation is not creditable if the deferral period is less than three months 
6.34 	or if deferral commenced before July 1, 1971. 
7.1 	(d) For persons who became covered employees before July 1, 2006, with a deferral 
7.2 	period commencing after June 30, 1971, the annuity must be augmented ~~using~~as follows:
7.3 	(1) five percent interest compounded annually until January 1, 1981~~, and~~;
7.4 	(2) three percent interest compounded annually ~~thereafter~~ from January 1, 1981, until 
7.5 	January 1 of the year following the year in which the deferred annuitant attains age 55~~.~~;
7.6 	~~From that date~~(3) five percent interest compounded annually from the date 
7.7 	established in clause (2) to the effective date of retirement~~, the rate is five percent~~ 
7.8 	~~compounded annually.~~ or until June 30, 2011, whichever is earlier; and
7.9 	(4) two percent interest compounded annually after June 30, 2011.
7.10 	(e) For persons who become covered employees after June 30, 2006, the interest 
7.11 	rate used to augment the deferred annuity is 2.5 percent interest compounded annually
7.12 	until June 30, 2011, or until the effective date of retirement, whichever is earlier, and two 
7.13 	percent interest compounded annually after June 30, 2011.
7.14 	(f) If a person has more than one period of uninterrupted service, a separate average 
7.15 	salary determined under section 354.44, subdivision 6, must be used for each period 
7.16 	and the required reserves related to each period must be augmented as specified in this 
7.17 	subdivision. The sum of the augmented required reserves is the present value of the 
7.18 	annuity. For the purposes of this subdivision, "period of uninterrupted service" means a 
7.19 	period of covered teaching service during which the member has not been separated from 
7.20 	active service for more than one fiscal year.
7.21 	(g) If a person repays a refund, the service restored by the repayment must be 
7.22 	considered as continuous with the next period of service for which the person has 
7.23 	allowable service credit in the Teachers Retirement Association.
7.24 	(h) If a person does not render teaching service in any one fiscal year or more 
7.25 	consecutive fiscal years and then resumes teaching service, the formula percentages used 
7.26 	from the date of the resumption of teaching service must be those applicable to new 
7.27 	members.
7.28 	(i) The mortality table and interest rate actuarial assumption used to compute the 
7.29 	annuity must be the applicable mortality table established by the board under section 
7.30 	354.07, subdivision 1, and the interest rate actuarial assumption under section 356.215 in 
7.31 	effect when the member retires. 
7.32 	(j) In no case may the annuity payable under this subdivision be less than the amount 
7.33 	of annuity payable under section 354.44, subdivision 6. 
7.34 	(k) The requirements and provisions for retirement before normal retirement age 
7.35 	contained in section 354.44, subdivision 6, also apply to an employee fulfilling the 
7.36 	requirements with a combination of service as provided in section 354.60. 
8.1 	(l) The augmentation provided by this subdivision applies to the benefit provided 
8.2 	in section 354.46, subdivision 2. 
8.3 	(m) The augmentation provided by this subdivision does not apply to any period 
8.4 	in which a person is on an approved leave of absence from an employer unit covered 
8.5 	by the provisions of this chapter.
8.6 	(n) The retirement annuity or disability benefit of, or the survivor benefit payable on 
8.7 	behalf of, a former teacher who terminated service before July 1, 1997, which is not first 
8.8 	payable until after June 30, 1997, must be increased on an actuarial equivalent basis to 
8.9 	reflect the change in the postretirement interest rate actuarial assumption under section 
8.10 	356.215, subdivision 8, from five percent to six percent under a calculation procedure and 
8.11 	tables adopted by the board as recommended by an approved actuary and approved by the 
8.12 	actuary retained under section 356.214.

8.13 	Sec. 10. Minnesota Statutes 2009 Supplement, section 356.415, subdivision 1, is 
8.14 	amended to read:
8.15 		Subdivision 1.Annual postretirement adjustments. (a) Retirement annuity, 
8.16 	disability benefit, or survivor benefit recipients of a covered retirement plan other than 
8.17 	the Teachers Retirement Association are entitled to a postretirement adjustment annually 
8.18 	on January 1, as follows:
8.19 	(1) a postretirement increase of 2.5 percent must be applied each year, effective 
8.20 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
8.21 	been receiving an annuity or a benefit for at least 12 full months prior to the January 1 
8.22 	increase; and
8.23 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a 
8.24 	benefit amount for at least one full month, an annual postretirement increase of 1/12 of 
8.25 	2.5 percent for each month the person has been receiving an annuity or benefit must 
8.26 	be applied, effective January 1 following the year in which the person has been retired 
8.27 	for less than 12 months.
8.28 	(b) The increases provided by this section commence on January 1, 2010.
8.29 	(c) An increase in annuity or benefit payments under this section must be made 
8.30 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
8.31 	executive director of the covered retirement plan requesting that the increase not be made.
8.32 	(d) The retirement annuity payable to a person who retires before becoming eligible 
8.33 	for Social Security benefits and who has elected the optional payment as provided in 
8.34 	section 353.29, subdivision 6, ~~or 354.35~~ must be treated as the sum of a period certain 
8.35 	retirement annuity and a life retirement annuity for the purposes of any postretirement 
9.1 	adjustment. The period certain retirement annuity plus the life retirement annuity must be 
9.2 	the annuity amount payable until age 62 for section 353.29, subdivision 6~~, or age 62, 65,~~ 
9.3 	~~or normal retirement age, as selected by the member at retirement, for an annuity amount~~ 
9.4 	~~payable under section 354.35~~. A postretirement adjustment granted on the period certain 
9.5 	retirement annuity must terminate when the period certain retirement annuity terminates.

9.6 	Sec. 11. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding 
9.7 	a subdivision to read:
9.8 		Subd. 1a.Teachers Retirement Association annual postretirement adjustments.
 9.9 	(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers 
9.10 	Retirement Association are entitled to a postretirement adjustment annually on January 
9.11 	1, as follows:
9.12 	(1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;
9.13 	(2) for January 1, 2013, and each successive January 1 until funding stability is 
9.14 	restored, a postretirement increase of two percent must be applied each year, effective on 
9.15 	January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient 
9.16 	who has been receiving an annuity or a benefit for at least 12 full months prior to the 
9.17 	January 1 increase;
9.18 	(3) for January 1, 2013, and each successive January 1 until funding stability is 
9.19 	restored, for each annuitant or benefit recipient who has been receiving an annuity or 
9.20 	a benefit for at least one full month, an annual postretirement increase of 1/12 of two 
9.21 	percent for each month the person has been receiving an annuity or benefit must be 
9.22 	applied, effective January 1, following the year in which the person has been retired 
9.23 	for less than 12 months;
9.24 	(4) for each January 1 following the restoration of funding stability, a postretirement 
9.25 	increase of 2.5 percent must be applied each year, effective January 1, to the monthly 
9.26 	annuity or benefit amount of each annuitant or benefit recipient who has been receiving an 
9.27 	annuity or a benefit for at least 12 full months prior to the January 1 increase; and
9.28 	(5) for each January 1 following the restoration of funding stability, for each 
9.29 	annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 
9.30 	one full month, an annual postretirement increase of 1/12 of 2.5 percent for each month 
9.31 	the person has been receiving an annuity or benefit must be applied, effective January 1, 
9.32 	following the year in which the person has been retired for less than 12 months.
9.33 	(b) Funding stability is restored when the actuarial value of assets of the Teachers 
9.34 	Retirement Association equals or exceeds 80 percent of the actuarial accrued liabilities of 
9.35 	the Teachers Retirement Association in the most recent prior actuarial valuation prepared 
10.1 	under section 356.215 and the standards for actuarial work by the approved actuary 
10.2 	retained by the Teachers Retirement Association under section 356.214.
10.3 	(c) An increase in annuity or benefit payments under this section must be made 
10.4 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
10.5 	executive director of the Teachers Retirement Association requesting that the increase 
10.6 	not be made.
10.7 	(d) The retirement annuity payable to a person who retires before becoming eligible 
10.8 	for Social Security benefits and who has elected the optional payment as provided in 
10.9 	section 354.35 must be treated as the sum of a period-certain retirement annuity and a life 
10.10 	retirement annuity for the purposes of any postretirement adjustment. The period-certain 
10.11 	retirement annuity plus the life retirement annuity must be the annuity amount payable 
10.12 	until age 62, 65, or normal retirement age, as selected by the member at retirement, for an 
10.13 	annuity amount payable under section 354.35. A postretirement adjustment granted on 
10.14 	the period-certain retirement annuity must terminate when the period-certain retirement 
10.15 	annuity terminates.

10.16 	Sec. 12. Minnesota Statutes 2008, section 356.47, subdivision 3, is amended to read:
10.17 		Subd. 3.Payment. (a) Beginning one year after the reemployment withholding 
10.18 	period ends relating to the reemployment that gave rise to the limitation, and the filing 
10.19 	of a written application, the retired member is entitled to the payment, in a lump sum, 
10.20 	of the value of the person's amount under subdivision 2, plus interest ~~at~~. Interest is the 
10.21 	compound annual rate of six percent from the date that the amount was deducted from the 
10.22 	retirement annuity to the date of payment for any retirement plan other than the Teachers 
10.23 	Retirement Association. For the Teachers Retirement Association, the interest is the 
10.24 	compound annual rate of six percent until June 30, 2011, or until the date of payment, 
10.25 	whichever is earlier. No interest accrues after June 20, 2011.
10.26 	(b) The written application must be on a form prescribed by the chief administrative 
10.27 	officer of the applicable retirement plan.
10.28 	(c) If the retired member dies before the payment provided for in paragraph (a) is 
10.29 	made, the amount is payable, upon written application, to the deceased person's surviving 
10.30 	spouse, or if none, to the deceased person's designated beneficiary, or if none, to the 
10.31 	deceased person's estate.
10.32 	(d) In lieu of the direct payment of the person's amount under subdivision 2, on 
10.33 	or after the payment date under paragraph (a), if the federal Internal Revenue Code so 
10.34 	permits, the retired member may elect to have all or any portion of the payment amount 
10.35 	under this section paid in the form of a direct rollover to an eligible retirement plan as 
11.1 	defined in section 402(c) of the federal Internal Revenue Code that is specified by the 
11.2 	retired member. If the retired member dies with a balance remaining payable under this 
11.3 	section, the surviving spouse of the retired member, or if none, the deceased person's 
11.4 	designated beneficiary, or if none, the administrator of the deceased person's estate may 
11.5 	elect a direct rollover under this paragraph.

11.6 	Sec. 13. EFFECTIVE DATE.
 11.7 	Sections 1 to 12 are effective July 1, 2010.