1998 Minnesota Statutes

CHAPTER 353. Public employees retirement association

     353.01 Definitions. 

    Subdivision 1.    Terms.  Unless the language or 
 context clearly indicates that a different meaning is intended, 
 the following terms, for the purposes of this chapter, shall be 
 given the meanings subjoined to them. 

    Subd. 2.    Public employee.  "Public employee" means an 
 employee performing personal services for a governmental 
 subdivision under subdivision 6, whose salary is paid, in whole 
 or in part, from revenue derived from taxation, fees, 
 assessments, or from other sources.  The term also includes 
 special classes of persons listed in subdivision 2a, but 
 excludes special classes of persons listed in subdivision 2b for 
 purposes of membership in the association.  Public employee does 
 not include independent contractors and their employees.  

    Subd. 2a.    Included employees.  Public employees whose 
 salary from one governmental subdivision exceeds $425 in any 
 month shall participate as members of the association.  If the 
 salary of an employee is less than $425 in a subsequent month, 
 the employee retains membership eligibility.  The following 
 persons are considered public employees: 

    (1) employees whose annual salary from one governmental 
 subdivision exceeds a stipulation prepared in advance, in 
 writing, to be not more than $5,100 per calendar year or per 
 school year for school employees for employment expected to be 
 of a full year's duration or more than the prorated portion of 
 $5,100 per employment period expected to be of less than a full 
 year's duration.  If compensation from one governmental 
 subdivision to an employee under this clause exceeds $5,100 per 
 calendar year or school year after being stipulated in advance 
 not to exceed that amount, the stipulation is no longer valid 
 and contributions must be made on behalf of the employee under 
 section 353.27, subdivision 12, from the month in which the 
 employee's salary first exceeded $425; 

    (2) employees whose total salary from concurrent 
 nontemporary positions in one governmental subdivision exceeds 
 $425 in any month; 

    (3) elected officers for service to which they were elected 
 by the public-at-large, or persons appointed to fill a vacancy 
 in an elective office, who elect to participate by filing an 
 application for membership, but not for service on a joint or 
 regional board that is a governmental subdivision under 
 subdivision 6, paragraph (a), unless the salary earned for that 
 service exceeds $425 in any month.  The option to become a 
 member, once exercised, may not be withdrawn during the 
 incumbency of the person in office; 

    (4) members who are appointed by the governor to be a state 
 department head and elect not to be covered by the Minnesota 
 state retirement system under section 352.021; 

    (5) employees of elected officers; 

    (6) persons who elect to remain members under section 
 480.181, subdivision 2; 

    (7) employees of a school district who receive separate 
 salaries for driving their own buses; 

    (8) employees of the Minnesota association of townships 
 when the board of the association, at its option, certifies to 
 the executive director that its employees are to be included for 
 purposes of retirement coverage, in which case coverage of all 
 employees of the association is permanent; 

    (9) employees of a county historical society who are county 
 employees; 

    (10) employees of a county historical society located in 
 the county whom the county, at its option, certifies to the 
 executive director to be county employees for purposes of 
 retirement coverage under this chapter, which status must be 
 accorded to all similarly situated county historical society 
 employees and, once established, must continue as long as a 
 person is an employee of the county historical society and is 
 not excluded under subdivision 2b; and 

    (11) employees who became members before July 1, 1988, 
 based on the total salary of positions held in more than one 
 governmental subdivision. 

    Subd. 2b.    Excluded employees.  The following public 
 employees shall not participate as members of the association 
 with retirement coverage by the public employees retirement plan 
 or the public employees police and fire retirement plan: 

    (1) elected public officers, or persons appointed to fill a 
 vacancy in an elective office, who do not elect to participate 
 in the association by filing an application for membership; 

    (2) election officers; 

    (3) patient and inmate personnel who perform services in 
 charitable, penal, or correctional institutions of a 
 governmental subdivision; 

    (4) employees who are hired for a temporary position under 
 subdivision 12a, and employees who resign from a nontemporary 
 position and accept a temporary position within 30 days in the 
 same governmental subdivision, but not those employees who are 
 hired for an unlimited period but are serving a probationary 
 period.  If the period of employment extends beyond six 
 consecutive months and the employee earns more than $425 from 
 one governmental subdivision in any one calendar month, the 
 department head shall report the employee for membership and 
 require employee deductions be made on behalf of the employee 
 under section 353.27, subdivision 4. 

    Membership eligibility of an employee who resigns or is 
 dismissed from a temporary position and within 30 days accepts 
 another temporary position in the same governmental subdivision 
 is determined on the total length of employment rather than on 
 each separate position.  Membership eligibility of an employee 
 who holds concurrent temporary and nontemporary positions in one 
 governmental subdivision is determined by the length of 
 employment and salary of each separate position; 

    (5) employees whose actual salary from one governmental 
 subdivision does not exceed $425 per month, or whose annual 
 salary from one governmental subdivision does not exceed a 
 stipulation prepared in advance, in writing, that the salary 
 must not exceed $5,100 per calendar year or per school year for 
 school employees for employment expected to be of a full year's 
 duration or more than the prorated portion of $5,100 per 
 employment period for employment expected to be of less than a 
 full year's duration; 

    (6) employees who are employed by reason of work emergency 
 caused by fire, flood, storm, or similar disaster; 

    (7) employees who by virtue of their employment in one 
 governmental subdivision are required by law to be a member of 
 and to contribute to any of the plans or funds administered by 
 the Minnesota state retirement system, the teachers retirement 
 association, the Duluth teachers retirement fund association, 
 the Minneapolis teachers retirement association, the St. Paul 
 teachers retirement fund association, the Minneapolis employees 
 retirement fund, or any police or firefighters relief 
 association governed by section 69.77 that has not consolidated 
 with the public employees retirement association, or any police 
 or firefighters relief association that has consolidated with 
 the public employees retirement association but whose members 
 have not elected the type of benefit coverage provided by the 
 public employees police and fire fund under sections 353A.01 to 
 353A.10.  This clause must not be construed to prevent a person 
 from being a member of and contributing to the public employees 
 retirement association and also belonging to and contributing to 
 another public pension fund for other service occurring during 
 the same period of time.  A person who meets the definition of 
 "public employee" in subdivision 2 by virtue of other service 
 occurring during the same period of time becomes a member of the 
 association unless contributions are made to another public 
 retirement fund on the salary based on the other service or to 
 the teachers retirement association by a teacher as defined in 
 section 354.05, subdivision 2; 

    (8) persons who are excluded from coverage under the 
 federal Old Age, Survivors, Disability, and Health Insurance 
 Program for the performance of service as specified in United 
 States Code, title 42, section 410(a)(8)(A), as amended through 
 January 1, 1987, if no irrevocable election of coverage has been 
 made under section 3121(r) of the Internal Revenue Code of 1954, 
 as amended; 

    (9) full-time students who are enrolled and are regularly 
 attending classes at an accredited school, college, or 
 university and who are part-time employees as defined by a 
 governmental subdivision; 

    (10) resident physicians, medical interns, and pharmacist 
 residents and pharmacist interns who are serving in a degree or 
 residency program in public hospitals; 

    (11) students who are serving in an internship or residency 
 program sponsored by an accredited educational institution; 

    (12) persons who hold a part-time adult supplementary 
 technical college license who render part-time teaching service 
 in a technical college; 

    (13) foreign citizens working for a governmental 
 subdivision with a work permit of less than three years, or an 
 H-1b visa valid for less than three years of employment.  Upon 
 notice to the association that the work permit or visa extends 
 beyond the three-year period, the foreign citizens are eligible 
 for membership from the date of the extension; 

    (14) public hospital employees who elected not to 
 participate as members of the association before 1972 and who 
 did not elect to participate from July 1, 1988, to October 1, 
 1988; 

    (15) except as provided in section 353.86, volunteer 
 ambulance service personnel, as defined in subdivision 35, but 
 persons who serve as volunteer ambulance service personnel may 
 still qualify as public employees under subdivision 2 and may be 
 members of the public employees retirement association and 
 participants in the public employees retirement fund or the 
 public employees police and fire fund on the basis of 
 compensation received from public employment service other than 
 service as volunteer ambulance service personnel; 

    (16) except as provided in section 353.87, volunteer 
 firefighters, as defined in subdivision 36, engaging in 
 activities undertaken as part of volunteer firefighter duties; 
 provided that a person who is a volunteer firefighter may still 
 qualify as a public employee under subdivision 2 and may be a 
 member of the public employees retirement association and a 
 participant in the public employees retirement fund or the 
 public employees police and fire fund on the basis of 
 compensation received from public employment activities other 
 than those as a volunteer firefighter; and 

    (17) pipefitters and associated trades personnel employed 
 by independent school district No. 625, St. Paul, with coverage 
 by the pipefitters local 455 pension plan under a collective 
 bargaining agreement who were either first employed after May 1, 
 1997, or, if first employed before May 2, 1997, elected to be 
 excluded under Laws 1997, chapter 241, article 2, section 12. 

    Subd. 2c. Repealed, 1989 c 319 art 3 s 26 

    Subd. 3.    Head of department.  "Head of department" 
 means the head of any department, institution, office, or branch 
 of service of any governmental subdivision which directly pays 
 salaries out of its revenue or is empowered to authorize the 
 payment of such salaries. 

    Subd. 4.    Accumulated deductions.  "Accumulated 
 deductions" means the total of the amounts deducted from the 
 salary of a member, exclusive of interest, and the total of the 
 amounts paid by a member in lieu of such deductions and credited 
 to the member's individual account in the retirement fund. 

    Subd. 5.  Repealed, 1971 c 106 s 40 

    Subd. 6.    Governmental subdivision.  (a) "Governmental 
 subdivision" means a county, city, town, school district within 
 this state, or a department or unit of state government, or any 
 public body whose revenues are derived from taxation, fees, 
 assessments or from other sources. 

    (b) Governmental subdivision also means the public 
 employees retirement association, the league of Minnesota 
 cities, the association of metropolitan municipalities, public 
 hospitals owned or operated by, or an integral part of, a 
 governmental subdivision or governmental subdivisions, the 
 association of Minnesota counties, the metropolitan intercounty 
 association, the Minnesota municipal utilities association, the 
 metropolitan airports commission, and the Minneapolis employees 
 retirement fund for employment initially commenced after June 
 30, 1979, the range association of municipalities and schools, 
 soil and water conservation districts, and economic development 
 authorities created or operating under sections 469.090 to 
 469.108. 

    (c) Governmental subdivision does not mean any municipal 
 housing and redevelopment authority organized under the 
 provisions of sections 469.001 to 469.047; or any port authority 
 organized under sections 469.048 to 469.068; or any hospital 
 district organized or reorganized prior to July 1, 1975, under 
 sections 447.31 to 447.37 or the successor of the district, nor 
 the Minneapolis community development agency.  

    Subd. 7.    Member.  "Member" means a person who accepts 
 employment as a "public employee" under subdivision 2, is an 
 employee under subdivision 2a, and is not covered by the plan 
 established in chapter 353D.  A person who is a member remains a 
 member while performing services as a public employee and while 
 on an authorized leave of absence or an authorized temporary 
 layoff. 

    Subd. 7a.    Former member.  "Former member" means a 
 member of the association who terminates public service under 
 subdivision 11a or membership under subdivision 11b. 

    Subd. 8.    Association.  "Association" means the 
 public employees retirement association. 

    Subd. 9.  Repealed, 1957 c 935 s 27 

    Subd. 10.    Salary.  (a) "Salary" means:  

    (1) periodic compensation of a public employee, before 
 deductions for deferred compensation, supplemental retirement 
 plans, or other voluntary salary reduction programs, and also 
 means "wages" and includes net income from fees; and 

    (2) for a public employee who has prior service covered by 
 a local police or firefighters' relief association that has 
 consolidated with the public employees retirement association 
 and who has elected coverage under the public employees police 
 and fire fund benefit plan under section 353A.08 following the 
 consolidation, "salary" means the rate of salary upon which 
 member contributions to the special fund of the relief 
 association were made prior to the effective date of the 
 consolidation as specified by law and by bylaw provisions 
 governing the relief association on the date of the initiation 
 of the consolidation procedure and the actual periodic 
 compensation of the public employee after the effective date of 
 consolidation. 

    (b) Salary does not mean: 

    (1) fees paid to district court reporters, unused annual or 
 sick leave payments, in lump-sum or periodic payments, severance 
 payments, reimbursement of expenses, lump-sum settlements not 
 attached to a specific earnings period, or workers' compensation 
 payments; 

    (2) employer-paid amounts used by an employee toward the 
 cost of insurance coverage, employer-paid fringe benefits, 
 flexible spending accounts, cafeteria plans, health care expense 
 accounts, day care expenses, or any payments in lieu of any 
 employer-paid group insurance coverage, including the difference 
 between single and family rates that may be paid to a member 
 with single coverage and certain amounts determined by the 
 executive director to be ineligible; 

    (3) the amount equal to that which the employing 
 governmental subdivision would otherwise pay toward single or 
 family insurance coverage for a covered employee when, through a 
 contract or agreement with some but not all employees, the 
 employer: 

    (i) discontinues, or for new hires does not provide, 
 payment toward the cost of the employee's selected insurance 
 coverages under a group plan offered by the employer; 

    (ii) makes the employee solely responsible for all 
 contributions toward the cost of the employee's selected 
 insurance coverages under a group plan offered by the employer, 
 including any amount the employer makes toward other employees' 
 selected insurance coverages under a group plan offered by the 
 employer; and 

    (iii) provides increased salary rates for employees who do 
 not have any employer-paid group insurance coverages; and 

    (4) except as provided in section 353.86 or 353.87, 
 compensation of any kind paid to volunteer ambulance service 
 personnel or volunteer firefighters, as defined in subdivisions 
 35 and 36.  

    Subd. 11.    Public service.  "Public service" means 
 service as an officer or employee of a governmental subdivision. 

    Subd. 11a.    Termination of public service.  
 "Termination of public service" occurs when a member resigns or 
 is dismissed from public service by the employing governmental 
 subdivision, as evidenced by appropriate written record 
 transmitted to the association, and does not within 30 days of 
 resignation or dismissal return to a nontemporary employment 
 position in the same governmental subdivision. 

    Subd. 11b.    Termination of membership.  "Termination 
 of membership" occurs: 

    (1) upon termination of public service under subdivision 
 11a; 

    (2) when a member who is a part-time employee is excluded 
 from membership as a full-time student under subdivision 2b, 
 clause (9); 

    (3) when a member does not return to work within 30 days of 
 the expiration of an authorized temporary layoff under 
 subdivision 12 or an authorized leave of absence under 
 subdivision 31.  If the employee subsequently returns to a 
 position in the same governmental subdivision, the employee 
 shall not again be required to earn a salary in excess of $425 
 per month, unless the employee has taken a refund of accumulated 
 employee deductions plus interest under section 353.34, 
 subdivision 1; or 

    (4) when a person files a written election to discontinue 
 employee deductions under section 353.27, subdivision 7, 
 paragraph (a), clause (1). 

    Subd. 12.    Authorized temporary layoff.  "Authorized 
 temporary layoff," including seasonal leave of absence, means a 
 suspension of public service authorized by the employing 
 governmental subdivision for a period not exceeding three months 
 in any calendar year, as evidenced by appropriate record of the 
 employer and promptly transmitted to the association. 

    Subd. 12a.    Temporary position.  (1) "Temporary 
 position" means an employment position predetermined by the 
 employer at the time of hiring to be a period of six months or 
 less or an employment position occupied by a person hired by the 
 employer for a predetermined period of six months or less. 

    (2) "Temporary position" does not mean an employment 
 position for an unlimited period in which a person serves a 
 probationary period or works an irregular schedule. 

    Subd. 13.  Repealed, 1963 c 641 s 38 

    Subd. 14.    Actuarial equivalent.  "Actuarial 
 equivalent" means the condition of one annuity or benefit having 
 an equal actuarial present value as another annuity or benefit, 
 determined as of a given date with each actuarial present value 
 based on the appropriate mortality table adopted by the board of 
 trustees based on the experience of the fund as recommended by 
 the actuary retained by the legislative commission on pensions 
 and retirement and using the applicable preretirement or 
 postretirement interest rate assumption specified in section 
 356.215, subdivision 4d.  

    Subd. 15.    Dependent child.  For the purpose of 
 survivor benefit eligibility under sections 353.31, subdivision 
 1, and 353.657, subdivision 3, "dependent child" means a 
 biological or adopted child of a deceased member who is 
 unmarried, and under the age of 18, or age 18 to 23, so long as 
 the child submits evidence of full-time enrollment in an 
 accredited educational institution.  "Dependent child" also 
 includes a child of the member conceived during the member's 
 lifetime and born after the member's death.  It also means a 
 dependent child who is the subject of adoption proceedings filed 
 by a member, and who within two years after death of the member, 
 by judgment and decree duly entered, is adjudged to be the 
 adopted child of the deceased member; subject, however, to the 
 qualifying conditions of age and dependency under this 
 subdivision.  The dependency of the child dates from the decree 
 of adoption.  "Dependent child" also includes a child age 18 to 
 23 who had submitted evidence of full-time enrollment in an 
 accredited educational institution but was determined to be 
 medically unable to continue school on a full-time basis.  The 
 board of trustees shall adopt written procedures to make 
 determinations regarding eligibility based on a student being 
 medically unable to continue school, and may not continue a 
 benefit for medical reasons for a period greater than one year. 

    Subd. 15a.    Dependent child.  For the purpose of 
 survivor benefit eligibility under section 353.32, subdivision 
 1c, "dependent child" means any biological or adopted child of a 
 deceased member who has not reached the age of 20 and is 
 dependent for more than one-half of support upon the member.  It 
 also includes any child of the member conceived during the 
 member's lifetime and born after the member's death. 

    Subd. 16.    Allowable service.  (a) "Allowable service" 
 means service during years of actual membership in the course of 
 which employee contributions were made, periods covered by 
 payments in lieu of salary deductions under section 353.35, and 
 service in years during which the public employee was not a 
 member but for which the member later elected, while a member, 
 to obtain credit by making payments to the fund as permitted by 
 any law then in effect. 

    (b) "Allowable service" also means a period of authorized 
 leave of absence with pay from which deductions for employee 
 contributions are made, deposited, and credited to the fund. 

    (c) "Allowable service" also means a period of authorized 
 leave of absence without pay that does not exceed one year, and 
 during or for which a member obtained credit by payments to the 
 fund made in place of salary deductions, provided that the 
 payments are made in an amount or amounts based on the member's 
 average salary on which deductions were paid for the last six 
 months of public service, or for that portion of the last six 
 months while the member was in public service, to apply to the 
 period in either case immediately preceding commencement of the 
 leave of absence.  If the employee elects to pay employee 
 contributions for the period of any leave of absence without 
 pay, or for any portion of the leave, the employee shall also, 
 as a condition to the exercise of the election, pay to the fund 
 an amount equivalent to both the required employer and 
 additional employer contributions for the employee.  The payment 
 must be made within one year from the expiration of the leave of 
 absence or within 20 days after termination of public service 
 under subdivision 11a.  The employer by appropriate action of 
 its governing body, made a part of its official records, before 
 the date of the first payment of the employee contribution, may 
 certify to the association in writing its commitment to pay the 
 employer and additional employer contributions from the proceeds 
 of a tax levy made under section 353.28.  Payments under this 
 paragraph must include interest at an annual rate of 8.5 percent 
 compounded annually from the date of the termination of the 
 leave of absence to the date payment is made.  An employee shall 
 return to public service and receive a minimum of three months 
 of allowable service to be eligible to pay employee and employer 
 contributions for a subsequent authorized leave of absence 
 without pay. 

    (d) "Allowable service" also means a periodic, repetitive 
 leave that is offered to all employees of a governmental 
 subdivision.  The leave program may not exceed 208 hours per 
 annual normal work cycle as certified to the association by the 
 employer.  A participating member obtains service credit by 
 making employee contributions in an amount or amounts based on 
 the member's average salary that would have been paid if the 
 leave had not been taken.  The employer shall pay the employer 
 and additional employer contributions on behalf of the 
 participating member.  The employee and the employer are 
 responsible to pay interest on their respective shares at the 
 rate of 8.5 percent a year, compounded annually, from the end of 
 the normal cycle until full payment is made.  An employer shall 
 also make the employer and additional employer contributions, 
 plus 8.5 percent interest, compounded annually, on behalf of an 
 employee who makes employee contributions but terminates public 
 service.  The employee contributions must be made within one 
 year after the end of the annual normal working cycle or within 
 20 days after termination of public service, whichever is 
 sooner.  The association shall prescribe the manner and forms to 
 be used by a governmental subdivision in administering a 
 periodic, repetitive leave. 

    (e) "Allowable service" also means a period during which a 
 member is on an authorized sick leave of absence, without pay, 
 limited to one year.  An employee who has received one year of 
 allowable service shall return to public service and receive a 
 minimum of three months of allowable service to receive 
 allowable service for a subsequent authorized sick leave of 
 absence. 

    (f) "Allowable service" also means an authorized temporary 
 layoff under subdivision 12, limited to three months allowable 
 service per authorized temporary layoff in one calendar year.  
 An employee who has received the maximum service allowed for an 
 authorized temporary layoff shall return to public service and 
 receive a minimum of three months of allowable service to 
 receive allowable service for a subsequent authorized temporary 
 layoff. 

    (g) Notwithstanding any law to the contrary, "allowable 
 service" also means a parental leave.  The association shall 
 grant a maximum of two months service credit for a parental 
 leave, within six months after the birth or adoption, upon 
 documentation from the member's governmental subdivision or 
 presentation of a birth certificate or other evidence of birth 
 or adoption to the association. 

    (h) "Allowable service" also means a period during which a 
 member is on an authorized leave of absence to enter military 
 service, provided that the member returns to public service upon 
 discharge from military service under section 192.262 and pays 
 into the fund employee contributions based upon the employee's 
 salary at the date of return from military service.  Payment 
 must be made within five years of the date of discharge from the 
 military service.  The amount of these contributions must be in 
 accord with the contribution rates and salary limitations, if 
 any, in effect during the leave, plus interest at an annual rate 
 of 8.5 percent compounded annually from the date of return to 
 public service to the date payment is made.  The matching 
 employer contribution and additional employer contribution under 
 section 353.27, subdivisions 3 and 3a, must be paid by the 
 governmental subdivision employing the member upon return to 
 public service if the member makes the employee contributions.  
 The governmental subdivision involved may appropriate money for 
 those payments.  A member may not receive credit for a voluntary 
 extension of military service at the instance of the member 
 beyond the initial period of enlistment, induction, or call to 
 active duty. 

    (i) For calculating benefits under sections 353.30, 353.31, 
 353.32, and 353.33 for state officers and employees displaced by 
 the Community Corrections Act, chapter 401, and transferred into 
 county service under section 401.04, "allowable service" means 
 combined years of allowable service as defined in paragraphs (a) 
 to (i) and section 352.01, subdivision 11.  

    (j) For a public employee who has prior service covered by 
 a local police or firefighters relief association that has 
 consolidated with the public employees retirement association, 
 and who has elected the type of benefit coverage provided by the 
 public employees police and fire fund under section 353A.08 
 following the consolidation, "applicable service" is a period of 
 service credited by the local police or firefighters relief 
 association as of the effective date of the consolidation based 
 on law and on bylaw provisions governing the relief association 
 on the date of the initiation of the consolidation procedure. 

    Subd. 17.    Approved actuary.  "Approved actuary" 
 means any actuary who is a fellow of the society of actuaries or 
 who has at least 15 years of service to major public employee 
 funds or any firm retaining such an actuary on its staff. 

    Subd. 18.    Year of allowable service.  "Year of 
 allowable service" means any 12 calendar months not necessarily 
 consecutive in which a public employee received compensation 
 from the governmental subdivision or was eligible to credit for 
 service.  It also means 12 months credit each year for employees 
 who are paid on a yearly basis and who may or may not receive 
 compensation in every calendar month in the year. 

    Subd. 19.    Total and permanent disability.  "Total and 
 permanent disability" means the inability to engage in any 
 substantial gainful activity by reason of any medically 
 determinable physical or mental impairment which can be expected 
 to be of long-continued and indefinite duration.  Long-continued 
 and indefinite duration means that the disability has been or is 
 expected to be for a period of at least one year. 

    Subd. 20.    Surviving spouse.  "Surviving spouse" means 
 the spouse of a deceased member or disabilitant who was legally 
 married to the member at the time of death. 

    Subd. 21.  Repealed, 1971 c 106 s 40 

    Subd. 22.  Repealed, 1971 c 106 s 40 

    Subd. 23.    Retirement annuity.  "Retirement annuity" 
 means the amount paid or payable by the fund to a former member 
 after retirement. 

    Subd. 24.    Optional annuity.  "Optional annuity" 
 means the allowance paid or payable by the fund to the 
 designated optional annuity beneficiary of a member or former 
 member, pursuant to an optional annuity form selected at or 
 before retirement, or to the spouse of a deceased member under 
 section 353.32, subdivision 1a. 

    Subd. 25.  Repealed, 1973 c 753 s 85 

    Subd. 26.  Repealed, 1971 c 106 s 40 

    Subd. 27.    Benefit.  "Benefit" means a monthly 
 survivor benefit paid or payable by the fund to a surviving 
 spouse or a dependent child and also includes a monthly 
 disability benefit paid or payable by the fund to a member who 
 is totally and permanently disabled. 

    Subd. 28.    Retirement.  (a) "Retirement" means the 
 commencement of payment of an annuity based on a date designated 
 by the board of trustees.  This date determines the rights under 
 this chapter which occur either before or after retirement.  A 
 right to retirement is subject to termination of public service 
 under subdivision 11a or termination of membership under 
 subdivision 11b, the earlier of which will determine the date 
 membership and coverage cease.  A right to retirement must not 
 accrue without a complete and continuous separation for 30 days 
 from employment as a public employee under subdivision 2. 

    A former member of the basic or police and fire fund who 
 becomes a coordinated member upon returning to eligible, 
 nontemporary public service, terminates employment before 
 obtaining six months' allowable service under subdivision 16, 
 paragraph (a), in the coordinated fund, and is eligible to 
 receive an annuity the first day of the month after the most 
 recent termination date shall not accrue a right to a retirement 
 annuity under the coordinated fund.  An annuity otherwise 
 payable to the former member must be based on the laws in effect 
 on the date of termination of the most recent service under the 
 basic or police and fire fund and shall be retroactive to the 
 first day of the month following that termination date or one 
 year preceding the filing of an application for retirement 
 annuity as provided by section 353.29, subdivision 7, whichever 
 is later.  The annuity payment must be suspended or reduced 
 under the provisions of section 353.37, if earned compensation 
 for the reemployment equals or exceeds the amounts indicated 
 under that section.  The association will refund the employee 
 deductions made to the coordinated fund, with interest under 
 section 353.34, subdivision 2, return the accompanying employer 
 contributions, and remove the allowable service credits covering 
 the deductions refunded. 

    (b) Notwithstanding the 30-day separation requirement, a 
 member of the defined benefit plan under this chapter, who also 
 participates in the public employees defined contribution plan 
 under chapter 353D for other public service, may be paid, if 
 eligible, a retirement annuity from the defined benefit plan 
 while participating in the defined contribution plan. 

    Subd. 29.    Designated beneficiary.  "Designated 
 beneficiary" means the person or organization designated by a 
 member, former member, disabilitant, or retired member in 
 writing, signed and filed with the association before the death 
 of the member, former member, disabilitant, or retired member, 
 to receive a refund of the balance of the member's accumulated 
 deductions after death. 

    Subd. 30.    Designated optional annuity beneficiary.  
 "Designated optional annuity beneficiary" means the person 
 designated by a former member to receive a joint and survivor 
 annuity or a modified joint and survivor annuity. 

    Subd. 31.    Authorized leave of absence.  "Authorized 
 leave of absence" means any period during which a member is 
 authorized by an employer to refrain from active employment, 
 with or without pay, evidenced by appropriate record of the 
 employer and promptly transmitted to the association. 

    Subd. 32.    Coordinated member.  "Coordinated member" 
 means any public employee, including any public hospital 
 employee, covered by any agreement or modification made between 
 the state and the Secretary of Health, Education and Welfare, 
 making the provisions of the federal Old Age, Survivors and 
 Disability Insurance Act applicable to the member if membership 
 eligibility criteria are met under this chapter.  Coordinated 
 member also means a basic member who terminates public service 
 under subdivision 11a, reenters public service in a nontemporary 
 position, and meets the membership eligibility criteria under 
 this chapter. 

    Subd. 33.    Basic member.  "Basic member" means any 
 public employee, including any public hospital employee, not 
 covered by any agreement or modification made between the state 
 and the Secretary of Health, Education and Welfare. 

    Subd. 34. Repealed, 1982 c 404 s 10 

    Subd. 35.    Volunteer ambulance service personnel.  
 "Volunteer ambulance service personnel," for purposes of this 
 chapter, are basic and advanced life support emergency medical 
 service personnel employed by or providing services for any 
 public ambulance service or privately operated ambulance service 
 that receives an operating subsidy from a governmental entity. 

    Subd. 36.    Volunteer firefighter.  For purposes of 
 this chapter, a person is considered a "volunteer firefighter" 
 for all service for which the person receives credit in an 
 association or fund operating under chapter 424A. 

    Subd. 37.    Normal retirement age.  "Normal retirement 
 age" means age 65 for a person who first became a public 
 employee or a member of a pension fund listed in section 356.30, 
 subdivision 3, before July 1, 1989.  For a person who first 
 becomes a public employee after June 30, 1989, "normal 
 retirement age" means the higher of age 65 or "retirement age," 
 as defined in United States Code, title 42, section 416(l), as 
 amended, but not to exceed age 66. 

    HIST: (254-23) 1931 c 307 s 1; 1933 c 374 s 1; 1937 c 466 s 1; 
 1941 c 285 s 1; 1945 c 78 s 1; 1947 c 18 s 1; 1949 c 84 s 1; 
 1951 c 22 s 1-8; 1953 c 78 s 1; 1955 c 815 s 11; 1957 c 815 s 1; 
 1957 c 935 s 1-5; 1959 c 650 s 1-7,39,43,58; 1961 c 482 s 1; 
 1961 c 595 s 1; 1961 c 746 s 1; 1963 c 440 s 1; 1963 c 641 s 
 3-12; 1965 c 104 s 1; 1965 c 880 s 1,2; Ex1967 c 26 s 1; Ex1967 
 c 37 s 1; 1969 c 940 s 1,2; 1971 c 106 s 1-8; 1971 c 503 s 1,2; 
 1973 c 123 art 5 s 7; 1973 c 753 s 3-18; 1974 c 229 s 1-8; 1975 
 c 102 s 1-3; 1975 c 359 s 23; 1976 c 329 s 12-15; 1977 c 347 s 
 52,53; 1977 c 429 s 19-22,63; 1978 c 471 s 1; 1978 c 720 s 6; 
 1978 c 796 s 23-26; 1979 c 216 s 1-4,21; 1979 c 303 art 6 s 5; 
 1980 c 609 art 5 s 20; 1981 c 68 s 16-18; 1981 c 180 s 1; 1981 c 
 224 s 73-75; 1981 c 298 s 11; 1982 c 404 s 1-4; 1982 c 424 s 
 64,115,125; 1983 c 286 s 6; 1985 c 261 s 3; 1Sp1985 c 7 s 12; 
 1986 c 399 art 2 s 9; 1986 c 400 s 9; 1986 c 444; 1986 c 458 s 
 11; 1Sp1986 c 3 art 2 s 41; 1987 c 49 s 9; 1987 c 258 s 12; 1987 
 c 259 s 25; 1987 c 284 art 5 s 1,2; 1987 c 291 s 215; 1987 c 296 
 s 1-3; 1987 c 372 art 1 s 5; 1988 c 709 art 2 s 1; art 5 s 1-7; 
 1989 c 209 art 2 s 36; 1989 c 246 s 2; 1989 c 319 art 3 s 1-6; 
 art 5 s 1; art 13 s 29; 1989 c 335 art 3 s 5; 1990 c 556 s 7; 
 1990 c 570 art 8 s 1; art 11 s 1-3; art 12 s 19; 1991 c 269 art 
 2 s 5; 1991 c 341 s 1-6; 1992 c 432 art 2 s 2-5; 1992 c 598 art 
 2 s 1; 1993 c 307 art 4 s 1-15; 1993 c 336 art 6 s 5,6; 1994 c 
 528 art 2 s 1-4; 1994 c 572 s 5; 1997 c 233 art 1 s 37; 1997 c 
 241 art 2 s 1; 1998 c 254 art 1 s 87 

  353.011 Repealed, 1996 c 310 s 1 

  353.015 Repealed, 1973 c 753 s 85 

  353.016 Repealed, 1977 c 429 s 65 

     353.017 Employees of labor organizations. 

    Subdivision 1.    Qualifications.  Unless specifically 
 exempt under section 353.01, subdivision 2b, a coordinated 
 member of the association who is on an authorized leave of 
 absence, and who is an employee of a labor organization that 
 represents public employees who are association members may 
 elect, under subdivision 2, to continue to be a coordinated 
 member with respect to employment by the labor organization 
 subject to the limitations set forth in subdivisions 4 and 7. 

    Subd. 2.    Election.  A person described in subdivision 
 1 is covered by the association if written election to be 
 covered is delivered to the association within six months of 
 employment by the labor organization or within six months after 
 July 1, 1993, whichever is applicable. 

    Subd. 3.    Contributions.  The employee, employer and 
 additional employer contributions are the obligation of the 
 employee who elects coverage herein in accord with this chapter; 
 provided, however, the employer, labor organization may pay the 
 employer and additional employer contributions.  The employer 
 shall, in any event, deduct the necessary contributions from the 
 employee's salary, subject to the limitations under subdivision 
 6, and remit all contributions to the public employees 
 retirement association under section 353.27, subdivisions 4, 7, 
 10, 11, and 12. 

    Subd. 4.  MS 1980 Repealed, 1982 c 404 s 10 

    Subd. 4.    Termination of membership for retirement 
 eligibility.  A retirement annuity is only payable, if the 
 person has met any other applicable requirements, upon the 
 termination by the person who elected coverage under subdivision 
 1 of employment by the labor organization.  The reemployed 
 annuitant earnings limitation set forth in section 353.37, 
 subdivision 1, applies in the event that the person who elected 
 coverage under subdivision 1 retires and is subsequently 
 reemployed while an annuitant by the labor organization or by 
 any other entity employing persons who are covered by the public 
 employees retirement association by virtue of that employment. 

    Subd. 5.    Board membership excluded.  Persons who 
 become association members pursuant to this section shall not be 
 eligible for election to the board of trustees. 

    Subd. 6.    Reemployment of annuitant.  The annuity of a 
 person otherwise eligible for an annuity under this chapter is 
 subject to the provisions of section 353.37. 

    Subd. 7.    Limitations on salary and contributions.  
 The covered salary for a labor organization employee who 
 qualifies for membership under this section is limited to the 
 lesser of: 

    (1) the employee's actual salary as defined under section 
 353.01, subdivision 10; or 

    (2) 75 percent of the salary of the governor as set under 
 section 15A.082. 

    The limited covered salary determined under this 
 subdivision must be used in determining employee and employer 
 contributions under section 353.27, subdivisions 2, 3, and 3a, 
 and in determining retirement annuities and other benefits under 
 this chapter and chapter 356. 

    HIST: 1975 c 102 s 4; 1978 c 796 s 27; 1979 c 216 s 5; 1986 c 
 444; 1993 c 307 art 4 s 16; 1994 c 528 art 2 s 5; art 4 s 4-7 

  353.018 Repealed, 1977 c 429 s 65 

  353.019 Repealed, 1977 c 429 s 65 

  353.02 Repealed, 1957 c 935 s 27 

  353.022 Repealed, 1981 c 68 s 46 

  353.023 Repealed, 1982 c 404 s 10 

     353.024 Employees of suburban public health nursing 
  service, incorporated. 

    From and after June 1, 1981, employees of the Suburban 
 Public Health Nursing Service, Incorporated, shall become 
 members of the public employees retirement association unless 
 specifically exempt under section 353.01, subdivision 2b, and 
 the Suburban Public Health Nursing Service, Incorporated, shall 
 be deemed to be a governmental subdivision for the purpose of 
 this chapter.  

    Retirement coverage by the public employees retirement 
 association shall be provided by the appropriate retirement 
 program as follows:  

    (a) an employee who was a basic member of the public 
 employees retirement association prior to December 2, 1977, and 
 who chose to be excluded from federal old age, survivors, 
 disability and health insurance coverage during an authorized 
 referendum for the period from December 2, 1977, to June 1, 
 1981, shall be deemed to be a basic member and shall be entitled 
 to coverage by the basic retirement program; and 

    (b) an employee who was either a basic member or a 
 coordinated member prior to December 2, 1977, and who chose to 
 be included in federal old age, survivors, disability and health 
 insurance coverage during an authorized referendum for the 
 period December 2, 1977, to June 1, 1981, or an employee who was 
 a coordinated member prior to December 2, 1977, and who chose to 
 be excluded from federal old age, survivors, disability and 
 health insurance coverage during an authorized referendum for 
 the period from December 2, 1977, to June 1, 1981, shall be 
 deemed to be a coordinated member and shall be entitled to 
 coverage by the coordinated retirement coverage.  

    HIST: 1981 c 68 s 19 

     353.025 Range association of municipalities and schools. 

    From and after January 1, 1982, employees of the Range 
 Association of Municipalities and Schools hereinafter referred 
 to as the association, shall become coordinated members of the 
 public employees retirement association unless specifically 
 exempt under section 353.01, subdivision 2b, and the association 
 shall be deemed to be a governmental subdivision for the 
 purposes of this chapter.  

    HIST: 1981 c 68 s 20 

     353.026 Coverage for certain municipal and school 
  district employees. 

    Any person who was employed by the city of Minneapolis, 
 Special School District No. 1, or public corporation as defined 
 in section 422A.01, subdivision 9, on or after July 1, 1978 and 
 prior to July 1, 1979, and who was excluded from retirement 
 coverage by the coordinated program of the Minneapolis municipal 
 employees retirement fund pursuant to section 422A.09, 
 subdivision 3, shall be entitled to retirement coverage by the 
 public employees retirement association unless specifically 
 excluded pursuant to section 353.01, subdivision 2b, from and 
 after May 19, 1981.  

    HIST: 1981 c 224 s 77 

     353.027 Retention of coverage for certain municipal 
  court employees. 

    Any person employed on January 1, 1975, by a municipal 
 court established pursuant to Minnesota Statutes 1957, section 
 488.03 and located in the cities of New Brighton, Roseville, 
 Maplewood, North Saint Paul, White Bear Lake or St. Paul shall 
 be eligible for membership in the public employees retirement 
 association and shall retain any rights or benefits the person 
 had attained as a member of the association on January 1, 1975, 
 so long as the person remains an employee of the municipal court 
 of Ramsey county.  

    HIST: 1981 c 224 s 78 

     353.028 City managers; election; deferred compensation. 

    Subdivision 1.    Definitions.  For purposes of this 
 section "city manager" means (1) a person duly appointed to and 
 holding the position of city manager in a Plan B statutory city 
 or in a home rule city operating under the "council-manager" 
 form of government, or (2) a person appointed to and holding the 
 position of chief administrative officer of a home rule charter 
 city or a statutory city pursuant to a charter provision, 
 ordinance, or resolution establishing such a position and 
 prescribing its duties and responsibilities.  "Governing body"  
 means the city council of the city employing the city manager.  
 "Election" means the election described in subdivision 2.  

    Subd. 2.    Election.  A city manager may elect to be 
 excluded from membership in the association.  The election of 
 exclusion must be made within six months following the 
 commencement of employment, in writing on a form prescribed by 
 the executive director, and must be approved by a resolution of 
 the governing body of the city.  The election of exclusion is 
 not effective until it is filed with the executive director.  
 Membership of a city manager in the association ceases on the 
 date the written election is received by the executive director 
 or upon a later date specified.  The election to be excluded 
 from membership must include a provision agreeing that the 
 person will not at any time in the future seek authorization to 
 purchase service credit for any period of excluded service and 
 is irrevocable.  Employee and employer contributions made on 
 behalf of a person exercising the option to be excluded from 
 membership under this section must be refunded in accordance 
 with section 353.27, subdivision 7.  

    Subd. 3.    Deferred compensation; city contribution.  
 If an election of exclusion is made, and if the city manager and 
 the governing body of the city agree in writing that the 
 additional compensation is to be deferred and shall be 
 contributed on behalf of the city manager to a deferred 
 compensation program which meets the requirements of section 457 
 of the Internal Revenue Code of 1954, as amended through 
 December 31, 1980, the governing body may compensate the city 
 manager, in addition to the salary allowed under any limitation 
 imposed on salaries by law or charter, in an amount equal to the 
 employer contribution which would be required by section 353.27, 
 subdivision 3, if the city manager were a member of the 
 association.  

    Subd. 4.    Refunds; deferred annuity.  A city manager 
 who makes an election to be excluded from membership is entitled 
 to a refund of accumulated deductions or, if otherwise 
 qualified, a deferred annuity in the manner provided by section 
 353.34, at the option of the manager.  

    Subd. 5.    Election; other employment.  If a city 
 manager who has made an election to be excluded accepts 
 employment in another governmental subdivision or accepts 
 employment other than as a city manager in the same city, the 
 election shall be deemed to have been rescinded on the effective 
 date of employment.  

    HIST: 1981 c 254 s 1; 1988 c 709 art 5 s 8 

     353.03 Board of trustees. 

    Subdivision 1.    Management; composition; election.  
 The management of the public employees retirement fund is vested 
 in an 11-member board of trustees consisting of ten members and 
 the state auditor who may designate a deputy auditor with 
 expertise in pension matters as the auditor's representative on 
 the board.  The governor shall appoint five trustees to 
 four-year terms, one of whom shall be designated to represent 
 school boards, one to represent cities, one to represent 
 counties, one who is a retired annuitant, and one who is a 
 public member knowledgeable in pension matters.  The membership 
 of the association, including recipients of retirement annuities 
 and disability and survivor benefits, shall elect five trustees, 
 one of whom must be a member of the police and fire fund and one 
 of whom must be a former member who met the definition of public 
 employee under section 353.01, subdivisions 2 and 2a, for at 
 least five years prior to terminating membership or a member who 
 receives a disability benefit, for terms of four years.  Except 
 as provided in this subdivision, trustees elected by the 
 membership of the association must be public employees and 
 members of the association.  For seven days beginning October 1 
 of each year preceding a year in which an election is held, the 
 association shall accept at its office filings in person or by 
 mail of candidates for the board of trustees.  A candidate shall 
 submit at the time of filing a nominating petition signed by 25 
 or more members of the fund.  No name may be withdrawn from 
 nomination by the nominee after October 15.  At the request of a 
 candidate for an elected position on the board of trustees, the 
 board shall mail a statement of up to 300 words prepared by the 
 candidate to all persons eligible to vote in the election of the 
 candidate.  The board may adopt policies to govern form and 
 length of these statements, timing of mailings, and deadlines 
 for submitting materials to be mailed.  These policies must be 
 approved by the secretary of state.  The secretary of state 
 shall resolve disputes between the board and a candidate 
 concerning application of these policies to a particular 
 statement.  A candidate who: 

    (1) receives contributions or makes expenditures in excess 
 of $100; or 

    (2) has given implicit or explicit consent for any other 
 person to receive contributions or make expenditures in excess 
 of $100 for the purpose of bringing about the candidate's 
 election, shall file a report with the campaign finance and 
 public disclosure board disclosing the source and amount of all 
 contributions to the candidate's campaign.  The campaign finance 
 and public disclosure board shall prescribe forms governing 
 these disclosures.  Expenditures and contributions have the 
 meaning defined in section 10A.01.  These terms do not include 
 the mailing made by the association board on behalf of the 
 candidate.  A candidate shall file a report within 30 days from 
 the day that the results of the election are announced.  The 
 campaign finance and public disclosure board shall maintain 
 these reports and make them available for public inspection in 
 the same manner as the board maintains and makes available other 
 reports filed with it.  By January 10 of each year in which 
 elections are to be held the board shall distribute by mail to 
 the members ballots listing the candidates.  No member may vote 
 for more than one candidate for each board position to be 
 filled.  A ballot indicating a vote for more than one person for 
 any position is void.  No special marking may be used on the 
 ballot to indicate incumbents.  The last day for mailing ballots 
 to the fund is January 31.  Terms expire on January 31 of the 
 fourth year, and positions are vacant until newly elected 
 members are qualified.  The ballot envelopes must be so designed 
 and the ballots counted in a manner that ensures that each vote 
 is secret.  

    The secretary of state shall supervise the elections.  The 
 board of trustees and the executive director shall undertake 
 their activities consistent with chapter 356A. 

    Subd. 1a.    Vacancy, how filled.  Any vacancy on the 
 board caused by death, resignation, or removal of any trustee, 
 or occurring because an elected trustee ceases to be a public 
 employee and an active member of the association, must be filled 
 by the board for trustees elected by members, and by the 
 governor for other trustees, for the unexpired portion of the 
 term in which the vacancy occurs. 

    Subd. 2.    No compensation expenses.  The members of 
 the board of trustees shall serve without compensation, but 
 shall be reimbursed out of the retirement fund for expenses 
 actually and necessarily paid or incurred in the performance of 
 their duties.  Members of the board of trustees shall suffer no 
 loss of compensation from a public employer by reason of service 
 on or for the board or on any authorized committee thereof. 

    Subd. 2a.  Repealed, 1977 c 429 s 65 

    Subd. 3.    Duties and powers of the board.  (a) The 
 board shall elect a president and vice-president.  The board 
 shall approve the staffing complement necessary to administer 
 the fund.  The cost of administering this chapter must be paid 
 by the fund.  

    (b) The board shall adopt bylaws for its own government and 
 for the management of the fund consistent with the laws of the 
 state and may modify them at pleasure.  It shall adopt, alter, 
 and enforce reasonable rules consistent with the laws of the 
 state for the administration and management of the fund, for the 
 payment and collection of payments from members, and for the 
 payment of withdrawals and benefits.  It shall pass upon and 
 allow or disallow all applications for membership in the fund 
 and shall allow or disallow claims for withdrawals, pensions, or 
 benefits payable from the fund.  It shall adopt an appropriate 
 mortality table based on experience of the fund as recommended 
 by the association actuary, with interest set at the rate 
 specified in section 356.215, subdivision 4, clause (4).  It 
 shall provide for the payment out of the fund of all necessary 
 expenses for the administration of the fund and of all claims 
 for withdrawals, pensions, or benefits allowed.  The board shall 
 approve or disapprove all recommendations and actions of the 
 executive director made subject to its approval or disapproval 
 by subdivision 3a. 

    (c) In passing upon all applications and claims, the board 
 may summon, swear, hear, and examine witnesses and, in the case 
 of claims for disability benefits, may require the claimant to 
 submit to a medical examination by a physician of the board's 
 choice, at the expense of the fund, as a condition precedent to 
 the passing on the claim, and, in the case of all applications 
 and claims, may conduct investigations necessary to determine 
 their validity and merit.  The board shall establish procedures 
 to assure that a benefit applicant and recipient may have a 
 review of a benefit eligibility or benefit amount determination 
 affecting the applicant or recipient.  The review procedure may 
 afford the benefit applicant or benefit recipient an opportunity 
 to present views at any review proceeding conducted, but is not 
 a contested case under chapter 14. 

    (d) The board may continue to authorize the sale of life 
 insurance to members under the insurance program in effect on 
 January 1, 1985, but must not change that program without the 
 approval of the commissioner of finance.  The association shall 
 not receive any financial benefit from the life insurance 
 program beyond the amount necessary to reimburse the association 
 for costs incurred in administering the program.  The 
 association shall not engage directly or indirectly in any other 
 activity involving the sale or promotion of goods or services, 
 or both, whether to members or nonmembers. 

    (e) The board shall establish procedures governing 
 reimbursement of expenses to board members.  These procedures 
 shall define the types of activities and expenses that qualify 
 for reimbursement, shall provide that all out-of-state travel 
 must be authorized by the board, and shall provide for 
 independent verification of claims for expense reimbursement. 
 The procedures must comply with applicable rules and policies of 
 the department of finance, the department of administration, and 
 the department of employee relations. 

    (f) The board may purchase fiduciary liability insurance 
 and official bonds for the officers and members of the board of 
 trustees and employees of the association and may purchase 
 property insurance or may establish a self-insurance risk 
 reserve including, but not limited to, data processing insurance 
 and "extra-expense" coverage. 

    Subd. 3a.    Executive director.  (a)    Appointment. 
  The board shall appoint, with the advice and consent of the 
 senate, an executive director on the basis of education, 
 experience in the retirement field, and leadership ability.  The 
 executive director shall have had at least five years' 
 experience in an executive level management position, which has 
 included responsibility for pensions, deferred compensation, or 
 employee benefits.  The executive director serves at the 
 pleasure of the board.  The salary of the executive director is 
 as provided by section 15A.0815. 

    (b)    Duties.  The management of the association is 
 vested in the executive director who shall be the executive and 
 administrative head of the association.  The executive director 
 shall act as adviser to the board on all matters pertaining to 
 the association and shall also act as the secretary of the 
 board.  The executive director shall: 

    (1) attend all meetings of the board; 

    (2) prepare and recommend to the board appropriate rules to 
 carry out the provisions of this chapter; 

    (3) establish and maintain an adequate system of records 
 and accounts following recognized accounting principles and 
 controls; 

    (4) designate, with the approval of the board, up to two 
 persons who shall serve in the unclassified service and whose 
 salary is set in accordance with section 43A.18, subdivision 3, 
 appoint a confidential secretary in the unclassified service, 
 and appoint employees to carry out this chapter, who are subject 
 to chapters 43A and 179A in the same manner as are executive 
 branch employees; 

    (5) organize the work of the association as the director 
 deems necessary to fulfill the functions of the association, and 
 define the duties of its employees and delegate to them any 
 powers or duties, subject to the control of, and under such 
 conditions as, the executive director may prescribe; 

    (6) with the approval of the board, contract for the 
 services of an approved actuary, professional management 
 services, and any other consulting services as necessary to 
 fulfill the purposes of this chapter.  All contracts are subject 
 to chapter 16C.  The commissioner of administration shall not 
 approve, and the association shall not enter into, any contract 
 to provide lobbying services or legislative advocacy of any 
 kind.  Any approved actuary retained by the executive director 
 shall function as the actuarial advisor of the board and the 
 executive director and may perform actuarial valuations and 
 experience studies to supplement those performed by the actuary 
 retained by the legislative commission on pensions and 
 retirement.  Any supplemental actuarial valuations or experience 
 studies shall be filed with the executive director of the 
 legislative commission on pensions and retirement.  Copies of 
 professional management survey reports shall be transmitted to 
 the secretary of the senate, the chief clerk of the house of 
 representatives, and the legislative reference library as 
 provided by section 3.195, to the executive director of the 
 commission and to the legislative auditor at the same time as 
 reports are furnished to the board.  Only management firms 
 experienced in conducting management surveys of federal, state, 
 or local public retirement systems shall be qualified to 
 contract with the director hereunder; 

    (7) with the approval of the board provide in-service 
 training for the employees of the association; 

    (8) make refunds of accumulated contributions to former 
 members and to the designated beneficiary, surviving spouse, 
 legal representative or next of kin of deceased members or 
 deceased former members, as provided in this chapter; 

    (9) determine the amount of the annuities and disability 
 benefits of members covered by the association and authorize 
 payment of the annuities and benefits beginning as of the dates 
 on which the annuities and benefits begin to accrue, in 
 accordance with the provisions of this chapter; 

    (10) pay annuities, refunds, survivor benefits, salaries, 
 and necessary operating expenses of the association; 

    (11) prepare and submit to the board and the legislature an 
 annual financial report covering the operation of the 
 association, as required by section 356.20; 

    (12) prepare and submit biennial and annual budgets to the 
 board for its approval and submit the approved budgets to the 
 department of finance for approval by the commissioner; 

    (13) reduce all or part of the accrued interest payable 
 under section 353.27, subdivisions 12, 12a, and 12b, or 353.28, 
 subdivision 5, upon receipt of proof by the association of an 
 unreasonable processing delay or other extenuating circumstances 
 of the employing unit.  The executive director shall prescribe 
 and submit for approval by the board the conditions under which 
 such interest may be reduced; and 

    (14) with the approval of the board, perform such other 
 duties as may be required for the administration of the 
 association and the other provisions of this chapter and for the 
 transaction of its business.  

    Subd. 4.    Offices.  The commissioner of 
 administration shall make provision for suitable office space in 
 the state capitol or other state office buildings, or at such 
 other location in St. Paul as is determined by the commissioner 
 for the use of the board of trustees and its executive 
 director.  The commissioner shall give the board at least four 
 months notice for any proposed removal from their present 
 location.  Any and all rental charges shall be paid by the 
 trustees from the public employees retirement fund. 

    Subd. 5.    Application of laws.  Laws applicable to 
 state agencies and agencies with statewide jurisdiction shall 
 apply to the association.  

    HIST: (254-25) 1931 c 307 s 3; 1949 c 84 s 2; 1951 c 22 s 16; 
 1959 c 650 s 8,58; 1963 c 641 s 13; 1967 c 641 s 1; 1969 c 940 s 
 3; 1971 c 106 s 10,11; 1973 c 753 s 19,20; 1974 c 229 s 9; 1975 
 c 102 s 5-8; 1976 c 329 s 17,18; 1977 c 429 s 18; 1978 c 796 s 
 28; 1979 c 216 s 6,7; 1981 c 180 s 2-4; 1981 c 224 s 79; 1984 c 
 462 s 27; 1985 c 11 s 5-10; 1986 c 444; 1987 c 259 s 26; 1987 c 
 284 art 5 s 3; 1988 c 709 art 5 s 9; 1989 c 319 art 8 s 16; 1991 
 c 341 s 7; 1994 c 528 art 2 s 6,7; 1997 c 202 art 2 s 63; 
 2Sp1997 c 3 s 18; 1998 c 386 art 2 s 87 

  353.04 Repealed, 1957 c 935 s 27 

     353.05 Custodian of funds. 

    The state treasurer shall be ex officio treasurer of the 
 retirement funds of the association and the treasurer's general 
 bond to the state shall be so conditioned as to cover all 
 liability for acts as treasurer of these funds.  All moneys of 
 the association received by the treasurer shall be set aside in 
 the state treasury to the credit of the proper fund.  The 
 treasurer shall transmit monthly to the executive director a 
 detailed statement of all amounts so received and credited to 
 the fund.  Payments out the fund shall be made only on warrants 
 issued by the commissioner of finance, upon abstracts signed by 
 the executive director; provided that abstracts for investment 
 may be signed by the secretary of the state board of investment. 

    HIST: (254-27) 1931 c 307 s 5; 1959 c 650 s 58; 1971 c 106 s 
 12; 1974 c 229 s 10; 1975 c 102 s 6; 1986 c 444 

     353.06 State board of investment to invest funds. 

    The executive director shall from time to time certify to 
 the state board of investment for investment such portions of 
 the retirement fund as in its judgment may not be required for 
 immediate use.  Assets from the public employees retirement fund 
 shall be transferred to the Minnesota postretirement investment 
 fund as provided in section 11A.18.  The state board of 
 investment shall thereupon invest and reinvest the sum so 
 certified, or transferred, in such securities as are duly 
 authorized as legal investments for state employees retirement 
 fund and shall have authority to sell, convey, and exchange such 
 securities and invest and reinvest the securities when it deems 
 it desirable to do so and shall sell securities upon request of 
 the board of trustees when such funds are needed for its 
 purposes.  All of the provisions regarding accounting procedures 
 and restrictions and conditions for the purchase and sale of 
 securities for the state employees retirement fund shall apply 
 to the accounting, purchase and sale of securities for the 
 public employees retirement fund. 

    HIST: (254-28) 1931 c 307 s 6; 1959 c 650 s 58; 1961 c 380 s 
 5; 1965 c 305 s 5; 1973 c 753 s 21; 1975 c 102 s 6; 1980 c 607 
 art 14 s 45 subd 2; s 46 

  353.07 Repealed, 1973 c 753 s 85 

     353.08 Legal adviser, attorney general; venue.  

    The attorney general shall be the legal adviser of the 
 board of trustees.  The board may sue or be sued in the name of 
 the board of trustees of the public employees retirement 
 association and, in all actions brought by it or against it, the 
 board shall be represented by the attorney general.  The venue 
 of all actions against and by the public employees retirement 
 association shall be Ramsey county.  

    HIST: (254-30) 1931 c 307 s 8; 1933 c 374 s 1; 1959 c 650 s 
 58; 1973 c 753 s 22; 1975 c 102 s 9 

  353.09 Repealed, 1957 c 935 s 27 

  353.10 Repealed, 1957 c 935 s 27 

  353.11 Repealed, 1957 c 935 s 27 

  353.12 Repealed, 1957 c 935 s 27 

  353.13 Repealed, 1973 c 753 s 85 

     353.14 Benefits from other funds. 

    No annuity or benefit provided by this chapter shall be 
 affected, diminished, or impaired by any pension, benefit, or 
 annuity which any member or survivor is entitled to receive from 
 a tax supported public retirement system authorized by any other 
 law, for different service for which the member or survivor is 
 entitled to receive benefit or annuity from the public employees 
 retirement association. 

    HIST: 1963 c 641 s 1; 1973 c 753 s 23; 1986 c 444 

     353.15 Nonassignability and exemption of annuities and 
  benefits from judicial process. 

    Subdivision 1.    Exemption; exceptions.  No money, 
 annuity, or benefit provided for in this chapter is assignable 
 or subject to any state estate tax, or to execution, levy, 
 attachment, garnishment, or legal process, except as provided in 
 subdivision 2 or section 518.58, 518.581, or 518.6111.  

    Subd. 2.    Automatic deposits.  The association may pay 
 an annuity, benefit or refund to a trust company, qualified 
 under chapter 48, that is trustee for a person eligible to 
 receive such annuity, benefit, or refund.  Upon the request of a 
 retired, disabled or former member, the association may mail or 
 send by electronic transfer the annuity, benefit or refund check 
 to a banking institution, savings association or credit union 
 for deposit to such person's account or joint account with a 
 spouse.  The association may prescribe the conditions under 
 which such payment will be made.  

    Subd. 3.    Payment to public bodies.  If in the 
 judgment of the executive director conditions so warrant, 
 payment may be made to a public body in behalf of an annuitant, 
 disabilitant, or survivor upon such terms as the executive 
 director may prescribe. 

    HIST: (254-40) 1931 c 307 s 18; 1955 c 815 s 9; 1971 c 789 s 
 5; 1973 c 753 s 24; 1975 c 102 s 6,10; 1976 c 329 s 19; 1978 c 
 772 s 62; 1979 c 303 art 3 s 29; 1981 c 180 s 5; 1984 c 547 s 6; 
 1986 c 444; 1987 c 157 s 5; 1990 c 570 art 11 s 4; 1997 c 203 
 art 6 s 92 

     353.16 Audit of books and accounts; insurance laws not 
  applicable. 

    None of the laws of this state regulating insurance or 
 insurance companies shall apply to the retirement association or 
 any of its funds.  The books and accounts of the association and 
 the retirement fund shall be examined and audited annually, if 
 funds and personnel permit, by the legislative auditor of the 
 state and a full and detailed report thereof made to the board 
 of trustees.  The cost of any examination shall be paid by the 
 retirement association in accordance with the provisions of 
 section 16A.127, subdivision 7, and for the purposes of this 
 section the public employees retirement association shall be 
 considered a state agency as referred to in section 16A.127, 
 subdivision 7. 

    HIST: (254-41) 1931 c 307 s 19; 1933 c 374 s 1; 1959 c 645 s 
 1; 1959 c 650 s 58; 1971 c 106 s 15; 1974 c 229 s 11; 1979 c 50 
 s 45; 1981 c 224 s 80 

  353.17 Repealed, 1971 c 106 s 40 

     353.18 Rules.  

    All matters and administrative details not specifically 
 provided for in this chapter shall be governed by rules issued 
 and promulgated by the board of trustees.  The final power to 
 determine the status of any individual in the employ of any 
 governmental subdivision, for the purposes of this chapter, is 
 hereby vested in the board, and such determination shall not be 
 disturbed unless found to be arbitrary and capricious.  

    HIST: (254-44) 1931 c 307 s 22; 1941 c 285 s 9; 1959 c 650 s 
 58; 1973 c 753 s 25; 1985 c 248 s 70 

     353.19 Penalties for false information.  

    Any person who shall give any false information to the 
 board of trustees or any officer or agent of the retirement 
 association, or any person who shall willfully fail or refuse to 
 perform or discharge any duty prescribed by this chapter shall, 
 upon conviction thereof, be guilty of a gross misdemeanor.  

    HIST: (254-45) 1931 c 307 s 23; 1959 c 650 s 58; 1973 c 753 s 
 26 

  353.20 Repealed, 1955 c 815 s 12 

  353.21 Repealed, 1957 c 935 s 27 

    353.26 Subdivision 1.  Repealed, 1973 c 753 s 85 

    Subd. 2.  Repealed, 1973 c 753 s 85 

    Subd. 3.  Repealed, 1973 c 753 s 85 

    Subd. 4.  Repealed, 1959 c 650 s 57 

    Subd. 5.  Repealed, 1973 c 753 s 85 

    Subd. 6.  Repealed, 1973 c 753 s 85 

     353.27 Public employees retirement fund. 

    Subdivision 1.    Income; disbursements.  There is a 
 special fund known as the "public employees retirement fund," 
 the "retirement fund," or the "fund," which shall include all 
 the assets of the association.  This fund shall be credited with 
 all contributions, all interest and all other income authorized 
 by law.  From this fund there is appropriated the payments 
 authorized by this chapter in the amounts and at such time 
 provided herein, including the expenses of administering the 
 fund, and including the proper share of the Minnesota 
 postretirement investment fund. 

    Subd. 2.    Employee contribution.  (a) Except as 
 provided in paragraph (b), the employee contribution shall be an 
 amount (1) for a "basic member" equal to 8.75 percent of total 
 salary; and (2) for a "coordinated member" equal to 4.75 percent 
 of total salary. 

    (b) For local government correctional service employees, as 
 defined in section 353.33, subdivision 3a, the employee 
 contribution is an amount equal to 4.96 percent of total salary. 

    (c) These contributions must be made by deduction from 
 salary in the manner provided in subdivision 4.  Where any 
 portion of a member's salary is paid from other than public 
 funds, such member's employee contribution must be based on the 
 total salary received from all sources. 

    Subd. 3.    Employer contribution.  (a) Except as 
 provided in paragraph (b), the employer contribution shall be an 
 amount equal to the employee contribution under subdivision 2. 

    (b) On behalf of local government correctional service 
 employees, as defined in section 353.33, subdivision 3a, the 
 employer contribution is an amount equal to 5.06 percent of 
 total salary. 

    (c) This contribution shall be made from funds available to 
 the employing subdivision by the means and in the manner 
 provided in section 353.28. 

    Subd. 3a.    Additional employer contribution.  (a) An 
 additional employer contribution must be made equal to (1) 2.68 
 percent of the total salary of each "basic member"; and (2) .43 
 percent of the total salary of each "coordinated member."  These 
 contributions must be made from funds available to the employing 
 subdivision by the means and in the manner provided in section 
 353.28.  

    (b) This subdivision is repealed once the actuarial value 
 of the assets of the plan equal or exceed the actuarial accrued 
 liability of the plan as determined by the actuary retained by 
 the legislative commission on pensions and retirement under 
 section 356.215.  The repeal is effective on the first day of 
 the first full pay period occurring after March 31 of the 
 calendar year following the issuance of the actuarial valuation 
 upon which the repeal is based. 

    Subd. 4.    Employers reporting requirements; 
 contributions; member status.  (a) The head of each department 
 shall deduct employee contributions from the salary of each 
 member and issue or approve one warrant for the aggregate amount 
 of the employee contributions, the employer contributions and 
 the additional employer contributions to be received within 20 
 calendar days in the office of the association.  The head of 
 each department shall, for each pay period in which employee 
 contributions are deducted, submit to the association a salary 
 deduction report, in the form prescribed by the executive 
 director, showing (a) the legal names and the association 
 membership numbers, listed in alphabetical order, of members; 
 (b) the legal names of all new public employees and the 
 effective dates of appointment; (c) the amount of each salary 
 deduction; (d) the amount of salary from which each deduction 
 was made; (e) effective dates of member terminations of public 
 service accompanied by the applicable status code as set by the 
 association for those terminations caused by death or 
 retirement; (f) effective dates of all temporary layoffs and 
 leaves of absence accompanied by the applicable status code as 
 set by the association; and (g) the beginning and ending dates 
 of the payroll period covered and the date of actual payment.  
 Reports of contributions must be accompanied by a membership 
 enrollment form for each new employee in the form prescribed by 
 the executive director.  The enrollment forms from new employees 
 must be collected by the employer and submitted to the 
 association within 30 days following the date of employment.  
 The employer shall furnish such additional reports on magnetic 
 media on other forms as may be requested by the executive 
 director. 

    (b) Notwithstanding paragraph (a), the association may 
 provide for less frequent reporting and payments for small 
 employers. 

    Subd. 5.  Repealed, 1973 c 753 s 85 

    Subd. 5a. Repealed, 1992 c 443 s 2 

    Subd. 6.  Repealed, 1971 c 106 s 40 

    Subd. 7.    Adjustment for erroneous receipts or 
 disbursements.  (a) Except as provided in paragraph (b), 
 erroneous employee deductions and erroneous employer 
 contributions and additional employer contributions for a 
 person, who otherwise does not qualify for membership under this 
 chapter, are considered: 

    (1) valid if the initial erroneous deduction began before 
 January 1, 1990.  Upon determination of the error by the 
 association, the person may continue membership in the 
 association while employed in the same position for which 
 erroneous deductions were taken, or file a written election to 
 terminate membership and apply for a refund or defer an annuity 
 under section 353.34; or 

    (2) invalid, if the initial erroneous employee deduction 
 began on or after January 1, 1990.  Upon determination of the 
 error, the association shall require the employer to discontinue 
 erroneous employee deductions and erroneous employer 
 contributions and additional employer contributions.  Upon 
 discontinuance, the association shall refund all erroneous 
 employee deductions to the person, with interest, under section 
 353.34, subdivision 2, and all erroneous employer contributions 
 and additional employer contributions to the employer.  No 
 person may claim a right to continued or past membership in the 
 association based on erroneous deductions which began on or 
 after January 1, 1990. 

    (b) Erroneous deductions taken from the salary of a person 
 who did not qualify for membership in the association by virtue 
 of concurrent employment before July 1, 1978, which required 
 contributions to another retirement fund or relief association 
 established for the benefit of officers and employees of a 
 governmental subdivision, are invalid.  Upon discovery of the 
 error, the association shall remove all service and refund all 
 erroneous employee deductions to the person, with interest under 
 section 353.34, subdivision 2, and all erroneous employer 
 contributions to the employer.  This paragraph has both 
 retroactive and prospective application.  

    (c) Employer contributions and employee deductions taken in 
 error from amounts which are not salary under section 353.01, 
 subdivision 10, are invalid upon discovery by the association 
 and may be refunded at any time. 

    (d) In the event a salary warrant or check from which a 
 deduction for the retirement fund was taken has been canceled or 
 the amount of the warrant or check returned to the funds of the 
 department making the payment, a refund of the sum deducted, or 
 a portion of it that is required to adjust the deductions, must 
 be made to the department or institution. 

    Subd. 7a.    Deductions or contributions transmitted by 
 error.  (a) If employee deductions and employer contributions 
 were erroneously transmitted to the association, but should have 
 been transmitted to another Minnesota public pension plan, the 
 association shall transfer the erroneous employee deductions and 
 employer contributions to the appropriate retirement fund 
 without interest.  The time limitations in subdivisions 7 and 12 
 do not apply. 

    (b) For purposes of this subdivision, a Minnesota public 
 pension plan means a plan specified in section 356.30, 
 subdivision 3, or the plan governed by chapter 354B. 

    Subd. 7b.    Overpayments to members.  In the event of 
 an overpayment to a member, the executive director shall recover 
 the overpayment by suspending or reducing the payment of a 
 retirement annuity, refund, disability benefit, survivor 
 benefit, or optional annuity under this chapter until all 
 outstanding money has been recovered. 

    Subd. 8.    District court reporters; salary deductions.  
  Deductions from the salary of a district court reporter in a 
 judicial district consisting of two or more counties shall be 
 made by the auditor of the county in which the bond and official 
 oath of such district court reporter are filed, from the portion 
 of salary paid by such county. 

    Subd. 9.    Fee officers; contributions; obligations of 
 employers.  Any appointed or elected officer of a governmental 
 subdivision who was or is a "public employee" within the meaning 
 of section 353.01 and was or is a member of the fund and whose 
 salary was or is paid in whole or in part from revenue derived 
 by fees and assessments, shall pay employee contribution in the 
 amount, at the time, and in the manner provided in subdivisions 
 2 and 4.  This subdivision shall not apply to district court 
 reporters.  The employer contribution as provided in subdivision 
 3, and the additional employer contribution as provided in 
 subdivision 3a, and section 353.36, subdivision 2a, with respect 
 to such service shall be paid by the governmental subdivision.  
 This subdivision shall have both retroactive and prospective 
 application as to all such members; and every employing 
 governmental subdivision is deemed liable, retroactively and 
 prospectively, for all employer and additional employer 
 contributions for every such member in its employ. Delinquencies 
 under this section shall be governed in all respects by section 
 353.28. 

    Subd. 10.    Employer exclusion reports.  The head of a 
 department shall annually furnish the executive director with an 
 exclusion report listing only those employees in potentially 
 PERA-eligible positions who were not reported as members of the 
 association and who worked during the school year for school 
 employees and calendar year for nonschool employees.  The 
 department head must certify the accuracy and completeness of 
 the exclusion report to the association.  The executive director 
 shall prescribe the manner and forms, including standardized 
 exclusion codes, to be used by a governmental subdivision in 
 preparing and filing exclusion reports.  The executive director 
 shall also check the exclusion report to ascertain whether any 
 omissions have been made by a department head in the reporting 
 of new public employees for membership.  The executive director 
 may delegate an association employee under section 353.03, 
 subdivision 3a, paragraph (b), clause (5), to conduct a field 
 audit to review the payroll records of a governmental 
 subdivision. 

    Subd. 11.    Employers; required to furnish requested 
 information.  All governmental subdivisions shall furnish 
 promptly such other information relative to the employment 
 status of all employees or former employees, including but not 
 limited to payroll abstracts pertaining to all past and present 
 employees, as may be requested by the association or its 
 executive director, including schedules of salaries applicable 
 to various categories of employment.  In the event payroll 
 abstract records have been lost or destroyed, for whatever 
 reason or in whatever manner, so that such schedules of salaries 
 cannot be furnished therefrom, the employing governmental 
 subdivision, in lieu thereof, shall furnish to the association 
 an estimate of the earnings of any employee or former employee 
 for any period as may be requested by the association or its 
 executive director. Should the association receive such 
 schedules of estimated earnings, the executive director is 
 hereby authorized to use the same as a basis for making whatever 
 computations might be necessary for determining obligations of 
 the employee and employer to the retirement fund.  If estimates 
 are not furnished by the employer pursuant to the request of the 
 association or its executive director, the association may 
 estimate the obligations of the employee and employer to the 
 retirement fund based upon such records as are in its 
 possession.  Where payroll abstracts have been lost or 
 destroyed, the governmental agency need not furnish any 
 information pertaining to employment prior to July 1, 1963. The 
 association shall make no estimate of any obligation of any 
 employee, former employee, or employer covering employment prior 
 to July 1, 1963. 

    Subd. 12.    Omitted salary deductions; obligations.  
 (a) In the case of omission of required deductions from the 
 salary of an employee, the department head shall immediately, 
 upon discovery, report the employee for membership and deduct 
 the employee deductions under subdivision 4.  Upon receipt of 
 billing from the association, the omitted employee deductions 
 must be deducted from the employee's next salary payment and 
 remitted to the association.  The employee shall pay omitted 
 employee deductions due for the 60 days prior to the end of the 
 last pay period in the omission period during which salary was 
 earned.  The employer shall pay any remaining omitted employee 
 deductions and any omitted employer contributions, plus 
 cumulative interest at an annual rate of 8.5 percent compounded 
 annually, from the date or dates each omitted employee 
 contribution was first payable.  

    (b) An employer shall not hold an employee liable for 
 omitted employee deductions beyond the pay period dates under 
 paragraph (a), nor attempt to recover from the employee those 
 employee deductions paid by the employer on behalf of the 
 employee.  Omitted deductions due under paragraph (a) which are 
 not paid by the employee constitute a liability of the employer 
 that failed to deduct the omitted deductions from the employee's 
 salary.  The employer shall make payment with interest at an 
 annual rate of 8.5 percent compounded annually.  Omitted 
 employee deductions are no longer due if an employee terminates 
 public service before making payment of omitted employee 
 deductions to the association, but the employer remains liable 
 to pay omitted employer contributions plus interest at an annual 
 rate of 8.5 percent compounded annually from the date the 
 contributions were first payable.  

    (c) The association may not commence action for the 
 recovery of omitted employee deductions and employer 
 contributions after the expiration of three calendar years after 
 the calendar year in which the contributions and deductions were 
 omitted.  No payment may be made or accepted unless the 
 association has already commenced action for recovery of omitted 
 deductions.  An action for recovery commences on the date of the 
 mailing of any written correspondence from the association 
 requesting information from the governmental subdivision upon 
 which to determine whether or not omitted deductions occurred. 

    Subd. 12a.  A terminated employee who has a period of 
 employment in which previously omitted employer contributions 
 were made under subdivision 12 but for whom no, or only partial, 
 omitted employee contributions have been made, or a member who 
 had prior coverage in the association for which previously 
 omitted employer contributions were made under subdivision 12 
 but who terminated service before required omitted employee 
 deductions could be withheld from salary, may pay the omitted 
 employee deductions for the period on which omitted employer 
 contributions were previously paid plus interest at an annual 
 rate of 8.5 percent compounded annually.  A terminated employee 
 may pay the omitted employee deductions plus interest within six 
 months of an initial notification from the association of 
 eligibility to pay those omitted deductions.  If a terminated 
 employee is reemployed in a position covered under a public 
 pension fund under section 356.30, subdivision 3, and elects to 
 pay omitted employee deductions, payment must be made no later 
 than six months after a subsequent termination of public service.

    Subd. 12b.  If deductions were omitted from salary 
 adjustments or final salary of a terminated employee who is 
 immediately eligible to draw a monthly benefit, the employer 
 shall pay the omitted employer and employer additional 
 contributions plus interest on both the employer and employee 
 amounts due at an annual rate of 8.5 percent compounded 
 annually.  The employee shall pay the employee deductions within 
 six months of an initial notification from the association of 
 eligibility to pay omitted deductions or the employee forfeits 
 the right to make the payment. 

    Subd. 13.    Certain warrants canceled.  A warrant 
 payable from the retirement fund remaining unpaid for a period 
 of six months must be canceled into the retirement fund and not 
 into the general fund. 

    HIST: 1957 c 935 s 7; 1959 c 650 s 12,37,58; 1961 c 744 s 1; 
 Ex1961 c 50 s 1; 1963 c 641 s 18; 1965 c 714 s 1-3; 1965 c 880 s 
 3; Ex1967 c 53 s 1-3; 1969 c 267 s 2; 1969 c 940 s 5; 1971 c 106 
 s 16,17; 1973 c 35 s 55; 1973 c 753 s 27-33; 1974 c 229 s 12,13; 
 1975 c 102 s 6; 1976 c 329 s 20; 1977 c 429 s 24; 1980 c 607 art 
 14 s 45 subd 2; 1981 c 180 s 6; 1982 c 404 s 5; 1983 c 73 s 1,2; 
 1983 c 286 s 7; 1984 c 564 s 21; 1Sp1985 c 7 s 13; 1986 c 444; 
 1987 c 284 art 5 s 4-6; 1988 c 709 art 5 s 10-15; 1989 c 319 art 
 3 s 7; art 13 s 30; 1990 c 570 art 11 s 5,6; 1991 c 341 s 8-14; 
 1992 c 432 art 2 s 6-8; 1992 c 513 art 4 s 40; 1992 c 598 art 2 
 s 2-4; 1993 c 307 art 4 s 17; 1994 c 508 art 1 s 2; 1994 c 528 
 art 2 s 8; 1997 c 233 art 1 s 38,39; 1998 c 390 art 9 s 1,2 

     353.271 Participation in Minnesota postretirement 
  investment fund. 

    Subdivision 1.    Authorization.  The public employees 
 retirement association, including the public employees police 
 and fire fund but excluding the various local relief association 
 consolidation accounts, is authorized to participate in the 
 Minnesota postretirement investment fund.  There shall be one 
 general participation in the Minnesota postretirement investment 
 fund for all purposes by the public employees retirement fund 
 and one general participation in the Minnesota postretirement 
 investment fund for all purposes by the public employees police 
 and fire fund. 

    Subd. 2.    Valuation of assets; adjustment of benefits. 
  (1) The required reserves for retirement annuities payable as 
 provided in this chapter other than those payable from the 
 various local relief association consolidation accounts, as 
 determined in accordance with the appropriate mortality table 
 adopted by the board of trustees based on the experience of the 
 fund as recommended by the actuary retained by the legislative 
 commission on pensions and retirement, and using the 
 postretirement interest assumption specified in section 356.215, 
 subdivision 4d, shall be transferred to the Minnesota 
 postretirement investment fund as of the last business day of 
 the month in which the retirement annuity begins.  

    (2) Annuity payments other than those payable from the 
 various local relief association consolidation accounts shall be 
 adjusted in accordance with the provisions of section 11A.18.  

    (3) Increases in payments pursuant to this section or from 
 the various local relief association consolidation accounts, if 
 applicable, will be made automatically unless the intended 
 recipient files written notice with the executive director of 
 the public employees retirement association requesting that the 
 increase shall not be made. 

    HIST: 1969 c 399 s 1; 1969 c 999 s 4; 1971 c 414 s 9; 1973 c 
 753 s 34,35; 1980 c 607 art 14 s 45 subd 2; s 46; 1Sp1985 c 7 s 
 14; 1987 c 259 s 27; 1987 c 296 s 4; 1996 c 305 art 1 s 77 

  353.272 Repealed, 1981 c 180 s 18 

     353.28 Financing of employer contributions. 

    Subdivision 1.  Each governmental subdivision shall secure 
 its employer contributions and its additional employer 
 contributions and shall pay these contributions to the 
 retirement fund out of moneys collected from taxes or other 
 revenue of the governmental subdivision, as its obligation for 
 all members employed by such subdivision and these contributions 
 shall be charged as administrative costs.  

    Subd. 2.  Repealed, 1973 c 753 s 85 

    Subd. 3.  Repealed, 1973 c 753 s 85 

    Subd. 4.  Repealed, 1973 c 753 s 85 

    Subd. 5.  Any amount due under this section or section 
 353.27, subdivision 4, is payable with interest at an annual 
 rate of 8.5 percent compounded annually from the date due until 
 the date payment is received by the association, with a minimum 
 interest charge of $10.  Interest for past due payments of 
 excess police state aid under section 69.031, subdivision 5, 
 must be charged at an annual rate of 8.5 percent compounded 
 annually. 

    Subd. 6.  If the governmental subdivision fails to pay 
 amounts due under chapters 353, 353A, 353B, 353C, and 353D or 
 fails to make payments of excess police state aid to the public 
 employees police and fire fund under section 69.031, subdivision 
 5, the executive director shall certify those amounts to the 
 governmental subdivision for payment.  If the governmental 
 subdivision fails to remit the sum so due in a timely fashion, 
 the executive director shall certify amounts to the county 
 auditor for collection.  The county auditor shall collect such 
 amounts out of the revenue of the governmental subdivision, or 
 shall add them to the levy of the governmental subdivision and 
 make payment directly to the association.  This tax shall be 
 levied, collected, and apportioned in the manner other taxes are 
 levied, collected, and apportioned. 

    Subd. 7.  Repealed, 1973 c 753 s 85 

    Subd. 8.  If the taxes authorized to be levied under this 
 section cause the total amount of taxes levied to exceed any 
 limitation upon the power of a county, city, town, or school 
 district to levy taxes, the governmental subdivision concerned, 
 if it is other than a school district, may levy taxes in excess 
 of the limitation in such amount as is necessary to meet its 
 obligations under this section.  The expenditures authorized to 
 be made under this chapter by any municipality are not included 
 in computing the cost of government as defined in any home rule 
 charter of any municipality which employs members covered by the 
 retirement fund. 

    Subd. 9.  Repealed, 1973 c 753 s 85 

    Subd. 10.  Repealed, 1973 c 753 s 85 

    Subd. 11.  Repealed, 1971 c 106 s 40 

    HIST: 1957 c 935 s 8; 1959 c 650 s 45,46,58; 1961 c 744 s 2; 
 Ex1961 c 50 s 2; Ex1967 c 59 s 1; 1969 c 267 s 3; 1971 c 106 s 
 18; Ex1971 c 31 art 20 s 11; 1973 c 123 art 5 s 7; 1973 c 753 s 
 37,38; 1975 c 102 s 6; 1981 c 180 s 7; 1981 c 224 s 81,82; 1983 
 c 73 s 3; 1987 c 284 art 5 s 7; 1989 c 319 art 3 s 8,9; 1991 c 
 341 s 15; 1992 c 598 art 2 s 5 

     353.29 Retirement annuity upon termination of membership.

    Subdivision 1.    Age and allowable service requirements. 
  Upon termination of membership, a person who has attained 
 normal retirement age and who received credit for not less than 
 three years of allowable service is entitled upon application to 
 a retirement annuity.  The retirement annuity is known as the 
 "normal" retirement annuity. 

    Subd. 2.    Average salary.  In calculating the annuity 
 under subdivision 3, "average salary" means an amount equivalent 
 to the average of a member's highest salary upon which employee 
 contributions were paid for any five successive years of 
 allowable service, based on dates of salary periods as listed on 
 salary deduction reports.  Average salary must be based upon all 
 allowable service if this service is less than five years.  The 
 average salary may not include any reduced salary paid during a 
 period in which the employee is entitled to benefit payments 
 from workers' compensation for temporary disability, unless the 
 average salary is higher, including this period.  

    Subd. 3.    Retirement annuity formula.  (a) This 
 paragraph, in conjunction with section 353.30, subdivisions 1, 
 1a, 1b, and 1c, applies to any member who first became a public 
 employee or a member of a pension fund listed in section 356.30, 
 subdivision 3, before July 1, 1989, unless paragraph (b), in 
 conjunction with section 353.30, subdivision 5, produces a 
 higher annuity amount, in which case paragraph (b) will apply.  
 The average salary as defined in subdivision 2, multiplied by 
 the percent specified in section 356.19, subdivision 3, for each 
 year of allowable service for the first ten years and thereafter 
 by the percent specified in section 356.19, subdivision 4, per 
 year of allowable service and completed months less than a full 
 year for the "basic member," and the percent specified in 
 section 356.19, subdivision 1, for each year of allowable 
 service for the first ten years and thereafter by the percent 
 specified in section 356.19, subdivision 2, per year of 
 allowable service and completed months less than a full year for 
 the "coordinated member," shall determine the amount of the 
 "normal" retirement annuity. 

    (b) This paragraph applies to a member who has become at 
 least 55 years old and first became a public employee after June 
 30, 1989, and to any other member whose annuity amount, when 
 calculated under this paragraph and in conjunction with section 
 353.30, subdivision 5, is higher than it is when calculated 
 under paragraph (a), in conjunction with section 353.30, 
 subdivisions 1, 1a, 1b, and 1c.  The average salary, as defined 
 in subdivision 2, multiplied by the percent specified in section 
 356.19, subdivision 4, for each year of allowable service and 
 completed months less than a full year for a basic member and 
 the percent specified in section 356.19, subdivision 2, per year 
 of allowable service and completed months less than a full year 
 for a coordinated member, shall determine the amount of the 
 normal retirement annuity. 

    Subd. 4.    Application for annuity.  Application for a 
 retirement annuity may be made by a member or by a person 
 authorized to act on behalf of the member.  Every application 
 for retirement must be made in writing on a form prescribed by 
 the executive director and must be substantiated by written 
 proof of the member's age and identity.  The notarized signature 
 of a member's spouse on a retirement annuity application 
 acknowledging the member's annuity selection meets the notice 
 requirement to the spouse under section 356.371, subdivision 3.  
 An application for a retirement annuity is not complete until 
 all necessary supporting documents are received by the executive 
 director. 

    Subd. 5.  Repealed, 1959 c 650 s 57 

    Subd. 6.    Retirement before eligibility for social 
 security benefits.  A member or former member who retires 
 before becoming eligible for social security retirement benefits 
 may elect to receive an optional retirement annuity from the 
 association that provides for different annuity amounts over 
 different periods of retirement.  The election of this optional 
 retirement annuity must be exercised by making application to 
 the board of trustees.  The optional annuity must take the form 
 of an annuity payable for the period before the annuitant 
 becomes eligible for social security old age retirement benefits 
 in a greater amount than the amount of the annuity calculated 
 under subdivisions 2 and 3 on the basis of the age of the 
 annuitant at retirement.  The optional annuity must be the 
 actuarial equivalent of the normal retirement annuity computed 
 on the basis of age at retirement.  This greater amount must be 
 paid until the annuitant reaches age 62, at which time the 
 payment from the association must be reduced.  The board of 
 trustees shall establish the method of computing the optional 
 retirement annuity under this subdivision.  In establishing the 
 method of computing the optional retirement annuity, the board 
 of trustees shall obtain the written approval of the 
 commission-retained actuary.  The recommendations must be a part 
 of the permanent records of the board of trustees. 

    Subd. 7.    Annuities; accrual.  Except as to elected 
 public officials, a retirement annuity granted under this 
 chapter begins with the first day of the first calendar month 
 after the date of termination of public service.  The annuity 
 must be paid in equal monthly installments and does not accrue 
 beyond the end of the month in which entitlement to the annuity 
 has terminated.  If the annuitant dies prior to negotiating the 
 check for the month in which death occurs, payment must be made 
 to the surviving spouse, or if none, to the designated 
 beneficiary, or if none, to the estate.  

    An annuity granted to an elective public official accrues 
 on the day following expiration of public office or expiration 
 of the right to hold that office.  The annuity for the month 
 during which the expiration occurred is prorated accordingly.  
 An annuity, once granted, must not be increased, decreased, or 
 revoked except under this chapter.  An annuity payment may be 
 made retroactive for up to one year prior to that month in which 
 a complete application is received by the executive director 
 under subdivision 4. 

    Subd. 8.    Annuities; payment; evidence of receipt.  
 Payment of any annuity or benefit for a given month shall be 
 mailed by the association to the annuitant, recipient of a 
 disability benefit, or survivor, during the first week of that 
 month.  Evidence of receipt of warrants issued by the 
 association in payment of an annuity or benefit shall be 
 submitted by the payee thereof to the association periodically 
 at times specified by the board of trustees, together with a 
 written declaration that the annuitant or recipient of a 
 disability benefit has or has not returned to public service; 
 that the surviving dependent spouse has or has not remarried; 
 and shall be furnished on forms provided by the executive 
 director thereof, before the association shall pay to the 
 disability recipient or survivor for the next ensuing month, the 
 benefit to which the person otherwise may be entitled.  In lieu 
 of the evidence of receipt of warrants for recipients of an 
 annuity or a benefit, the board may contract for professional 
 services to identify deceased annuitants and benefit recipients 
 through a review of nationally maintained death records. 

    HIST: 1957 c 935 s 9; 1959 c 650 s 13-16; 1963 c 639 s 1; 1965 
 c 714 s 4; 1965 c 880 s 4; Ex1967 c 53 s 4; 1971 c 106 s 19-21; 
 1973 c 753 s 39-42; 1974 c 229 s 14; 1975 c 102 s 6,11,12; 1976 
 c 329 s 21; 1977 c 429 s 25,26; 1978 c 471 s 2,3; 1979 c 216 s 
 8,9; 1981 c 180 s 8; 1981 c 224 s 83; 1983 c 73 s 4,5; 1986 c 
 444; 1987 c 259 s 28; 1987 c 284 art 5 s 8; 1987 c 372 art 9 s 
 10,11; 1988 c 709 art 5 s 16; 1989 c 319 art 3 s 10,11; art 13 s 
 31-33; 1990 c 570 art 12 s 20; 1991 c 341 s 16; 1992 c 432 art 2 
 s 9; 1993 c 307 art 4 s 18; 1997 c 233 art 1 s 40 

     353.30 Annuities upon retirement. 

    Subdivision 1.  Upon separation from public service, any 
 person who first became a public employee or a member of a 
 pension fund listed in section 356.30, subdivision 3, before 
 July 1, 1989, and who has become at least 58 years old but not 
 more than normal retirement age and who received credit for not 
 less than 20 years of allowable service is entitled upon 
 application to a retirement annuity in an amount equal to the 
 normal annuity provided in section 353.29, subdivisions 2 and 3, 
 paragraph (a), reduced by one-quarter of one percent for each 
 month that the member is under normal retirement age at the time 
 of retirement. 

    Subd. 1a.  Any person who first became a public employee or 
 a member of a pension fund listed in section 356.30, subdivision 
 3, before July 1, 1989, and whose attained age plus credited 
 allowable service totals 90 years is entitled upon application 
 to a retirement annuity in an amount equal to the normal annuity 
 provided in section 353.29, subdivisions 2 and 3, paragraph (a), 
 without any reduction in annuity by reason of such early 
 retirement. 

    Subd. 1b.  Any person who first became a public employee or 
 a member of a pension fund listed in section 356.30, subdivision 
 3, before July 1, 1989, with 30 years or more of allowable 
 service credit, who elects early retirement under subdivision 1, 
 shall receive an annuity in an amount equal to the normal 
 annuity provided under section 353.29, subdivisions 2 and 3, 
 paragraph (a), reduced by one-quarter of one percent for each 
 month that the member is under age 62 at the time of retirement. 

    Subd. 1c.  Any person who first became a public employee or 
 a member of a pension fund listed in section 356.30, subdivision 
 3, before July 1, 1989, and who has received credit for at least 
 30 years of allowable service or who has become at least 55 
 years old but not normal retirement age, and has received credit 
 for at least three years of allowable service is entitled upon 
 application to a retirement annuity in an amount equal to the 
 normal annuity provided in section 353.29, subdivisions 2 and 3, 
 paragraph (a), reduced by one-quarter of one percent for each 
 month that the member is under normal retirement age at the time 
 of retirement, except that for any member who has 30 or more 
 years of allowable service the reduction shall be applied only 
 for each month that the member is under age 62 at the time of 
 retirement. 

    Subd. 2.  Repealed, 1971 c 106 s 40 

    Subd. 3.    Optional retirement annuity forms.  The 
 board of trustees shall establish optional annuities which shall 
 take the form of a joint and survivor annuity.  Except as 
 provided in subdivision 3a, the optional annuity forms shall be 
 actuarially equivalent to the forms provided in section 353.29 
 and subdivisions 1, 1a, 1b, 1c, and 5.  In establishing those 
 optional forms, the board shall obtain the written 
 recommendation of the commission-retained actuary.  The 
 recommendations shall be a part of the permanent records of the 
 board.  A member or former member may select an optional form of 
 annuity in lieu of accepting any other form of annuity which 
 might otherwise be available. 

    Subd. 3a.    Bounce-back annuity.  (a) If a former 
 member or disabilitant selects a joint and survivor annuity 
 option under subdivision 3, the former member or disabilitant 
 must receive a normal single life annuity if the designated 
 optional annuity beneficiary dies before the former member or 
 disabilitant.  Under this option, no reduction may be made in 
 the person's annuity to provide for restoration of the normal 
 single life annuity in the event of the death of the designated 
 optional annuity beneficiary. 

    (b) A former member or disabilitant who selected an 
 optional joint and survivor annuity before July 1, 1989, but did 
 not choose an option that provides that the normal single life 
 annuity is payable to the former member or the disabilitant if 
 the designated optional annuity beneficiary dies first, is 
 eligible for restoration of the normal single life annuity if 
 the designated optional annuity beneficiary dies first, without 
 further actuarial reduction of the person's annuity.  A former 
 member or disabilitant who selected an optional joint and 
 survivor annuity, but whose designated optional annuity 
 beneficiary died before July 1, 1989, shall receive a normal 
 single life annuity after that date, but shall not receive 
 retroactive payments for periods before that date. 

    (c) A former member or disabilitant who took a further 
 actuarial reduction to elect an optional joint and survivor 
 annuity that provides that the normal annuity is payable to the 
 former member or disabilitant if the designated optional 
 beneficiary dies first but has not died before July 1, 1989, 
 shall have their annuity increased as of July 1, 1989, to the 
 amount the person would have received if, at the time of 
 retirement or disability, the person had selected only optional 
 survivor coverage that would not have provided for restoration 
 of the normal annuity upon the death of the designated optional 
 annuity beneficiary.  Any annuity or benefit increase under this 
 paragraph is effective only for payments made after June 30, 
 1989, and is not retroactive for payments made before July 1, 
 1989. 

    Subd. 3b.    Bounce-back annuity.  (a) The board of 
 trustees must provide a joint and survivor annuity option to 
 members of the police and fire fund.  Under this option, a 
 former member or disabilitant must receive a normal single life 
 annuity if the designated optional annuity beneficiary dies 
 before the former member or disabilitant.  Under this option, no 
 reduction may be made in the person's annuity to provide for 
 restoration of the normal single life annuity in the event of 
 the death of the designated optional annuity beneficiary. 

    (b) A former member or disabilitant of the police and fire 
 fund who selected an optional joint and survivor annuity before 
 July 1, 1989, but did not choose an option that provides that 
 the normal single life annuity is payable to the former member 
 or the disabilitant if the designated optional annuity 
 beneficiary dies first, is eligible for restoration of the 
 normal single life annuity if the designated optional annuity 
 beneficiary dies first, without further actuarial reduction of 
 the person's annuity.  A former member or disabilitant who 
 selected an optional joint and survivor annuity, but whose 
 designated optional annuity beneficiary died before July 1, 
 1989, shall receive a normal single life annuity after that 
 date, but shall not receive retroactive payments for periods 
 before that date. 

    (c) A former member or disabilitant who took a further 
 actuarial reduction to elect an optional joint and survivor 
 annuity that provides that the normal annuity is payable to the 
 former member or disabilitant if the designated optional 
 beneficiary dies first but has not died before July 1, 1989, 
 shall have their annuity increased as of July 1, 1989, to the 
 amount the person would have received if, at the time of 
 retirement or disability, the person had selected only optional 
 survivor coverage that would not have provided for restoration 
 of the normal annuity upon the death of the designated optional 
 annuity beneficiary.  Any annuity or benefit increase under this 
 paragraph is effective only for payments made after June 30, 
 1989, and is not retroactive for payments made before July 1, 
 1989. 

    Subd. 3c.    Effective date of bounce-back annuity.  In 
 the event of the death of the designated optional annuity 
 beneficiary before the retired employee or disabilitant, the 
 restoration of the normal single life annuity under subdivision 
 3a or 3b will take effect on the first of the month following 
 the date of death of the designated optional annuity beneficiary 
 or on the first of the month following one year before the date 
 on which a certified copy of the death certificate is received 
 in the office of the public employees retirement association, 
 whichever date is later. 

    Subd. 4.    Reduction in monthly payments.  Monthly 
 payments to which any person may be entitled under this chapter 
 may be reduced upon application to the association, provided 
 that the person shall first relinquish in writing all claim to 
 that part of the full monthly payment which is the difference 
 between the monthly payment which that person would be otherwise 
 entitled to receive and the monthly payment which that person 
 will receive.  The reduced monthly payment shall be payment in 
 full of all amounts due under this chapter for the month for 
 which the payment is made and acceptance of the reduced monthly 
 payment releases the retirement association from all obligation 
 to pay to the person the difference between the amount of the 
 reduced monthly payment and the full amount of the monthly 
 payment which the person would otherwise have received.  Upon 
 application of the person who is entitled to such monthly 
 payment, it may be increased prospectively to not more than the 
 amount to which the person would have been entitled had no 
 portion thereof been waived.  

    Subd. 5.    Actuarial reduction for early retirement.  
 This subdivision applies to a member who has become at least 55 
 years old and first became a public employee after June 30, 
 1989, and to any other member who has become at least 55 years 
 old and whose annuity is higher when calculated under section 
 353.29, subdivision 3, paragraph (b), in conjunction with this 
 subdivision than when calculated under section 353.29, 
 subdivision 3, paragraph (a), in conjunction with subdivision 1, 
 1a, 1b, or 1c.  An employee who retires before normal retirement 
 age shall be paid the retirement annuity provided in section 
 353.29, subdivision 3, paragraph (b), reduced so that the 
 reduced annuity is the actuarial equivalent of the annuity that 
 would be payable to the employee if the employee deferred 
 receipt of the annuity and the annuity amount were augmented at 
 an annual rate of three percent compounded annually from the day 
 the annuity begins to accrue until the normal retirement age. 

    HIST: 1957 c 935 s 10; 1959 c 650 s 17,18,58; 1971 c 106 s 22; 
 1973 c 753 s 43-45; 1976 c 329 s 22; 1978 c 796 s 29-31; 1981 c 
 224 s 84; 1982 c 519 s 1-3; 1983 c 286 s 8; 1984 c 564 s 22; 
 1986 c 444; 1987 c 259 s 29; 1987 c 372 art 9 s 12; 1989 c 319 
 art 13 s 34; art 17 s 11; 1990 c 570 art 12 s 21 

     353.31 Survivor benefits. 

    Subdivision 1.    Benefits for surviving spouse and 
 dependent children; before retirement.  Upon the death of a 
 basic member before retirement or upon the death of a basic 
 member who was disabled and receiving disability benefits under 
 section 353.33 at the time of death who has had at least 18 
 months of credited allowable service, the surviving spouse and 
 dependent child or children of the member, as defined in section 
 353.01, subdivisions 15 and 20, are entitled to receive the 
 monthly benefit provided below: 

 (a) Surviving spouse           50 percent of the member's

                                monthly average salary in

                                effect over the last full

                                six months of allowable

                                service preceding the month

                                in which death occurred

 (b) Each dependent child       10 percent of the member's

                                monthly average salary in

                                effect over the last full

                                six months of allowable

                                service preceding the month

                                in which death occurred

 Notwithstanding the definition of surviving spouse under section 
 353.01, subdivision 20, a former spouse of the member, if any, 
 is entitled to a portion of the monthly surviving spouse benefit 
 if stipulated under the terms of a marriage dissolution decree 
 that is filed with the association.  If there is no surviving 
 spouse or child or children, a former spouse may be entitled to 
 a lump-sum refund payment under section 353.32, subdivision 1, 
 if provided for in a marriage dissolution decree but not a 
 monthly surviving spouse benefit even if required by the decree. 

    Subd. 1a.    Maximum family benefit.  Payments for the 
 benefit of a dependent child or children, as defined in section 
 353.01, subdivision 15, must be made to the surviving parent, or 
 to the legal guardian of the child.  The maximum monthly benefit 
 for a family must not exceed an amount equal to 70 percent of 
 the member's specified average monthly salary, and the minimum 
 benefit for a family including a 100 percent joint and survivor 
 annuity under subdivision 1b, must not be less than 50 percent 
 of the basic member's specified average monthly salary.  

    Subd. 1b.    Joint and survivor option.  (a) Prior to 
 payment of a surviving spouse benefit under subdivision 1, the 
 surviving spouse may elect to receive the 100 percent joint and 
 survivor optional annuity under section 353.32, subdivision 1a, 
 rather than a surviving spouse benefit.  

    (b) If there is a dependent child or children, and the 100 
 percent joint and survivor optional annuity for the surviving 
 spouse, when added to the dependent children's benefit under 
 subdivisions 1 and 1a, exceeds an amount equal to 70 percent of 
 the member's specified average monthly salary, the 100 percent 
 joint and survivor annuity under section 353.32, subdivision 1a, 
 must be reduced by the amount necessary so that the total family 
 benefit does not exceed the 70 percent maximum family benefit 
 amount under subdivision 1a. 

    (c) The 100 percent joint and survivor optional annuity 
 must be restored to the surviving spouse, plus applicable 
 postretirement fund adjustments under section 356.41, as the 
 dependent child or children become no longer dependent under 
 section 353.01, subdivision 15. 

    Subd. 1c.    Coordinated members.  Except for benefits 
 provided under section 353.32, subdivisions 1 and 1a, no 
 survivor benefits are payable to the surviving spouse or 
 dependent children of a deceased coordinated member. 

    Subd. 2.  Repealed, 1973 c 753 s 85 

    Subd. 3.  Repealed, 1973 c 753 s 85 

    Subd. 4.  Repealed, 1973 c 753 s 85 

    Subd. 5.  Repealed, 1973 c 753 s 85 

    Subd. 6.  Repealed, 1973 c 753 s 85 

    Subd. 7.  Repealed, 1973 c 753 s 85 

    Subd. 8.    Accrual of benefits.  All benefits under 
 this section and survivor benefits otherwise provided in this 
 chapter when payable to persons qualifying therefor shall accrue 
 on the first day following the death of a "basic member" or the 
 first day of the month following the death of an annuitant or 
 disabilitant.  No payment may be made retroactively for more 
 than 12 months prior to that month in which the application is 
 filed, and no benefit shall accrue beyond the end of the month 
 in which entitlement to such benefits has terminated. 

    Subd. 9.    Application for benefits.  Every claim or 
 demand for a survivor benefit or spouse's annuity shall be 
 initiated by written application in the manner and form 
 prescribed by the executive director, filed in the office of the 
 retirement association, showing compliance with the statutory 
 conditions qualifying the applicant for such survivor benefit or 
 spouse's annuity. 

    Subd. 10.  Repealed, 1973 c 753 s 85 

    Subd. 11.  Repealed, 1977 c 429 s 65 

    HIST: 1957 c 935 s 11; 1959 c 646 s 1; 1959 c 650 s 19,20,47; 
 1959 c 651 s 1; 1961 c 467 s 1-4; Ex1961 c 79 s 1; 1963 c 641 s 
 19-21; 1965 c 880 s 5; Ex1967 c 26 s 2; 1969 c 858 s 1; 1969 c 
 940 s 6; 1971 c 106 s 23-25; 1973 c 753 s 46,47; 1974 c 229 s 
 15; 1975 c 102 s 13; 1977 c 429 s 27; 1978 c 471 s 4; 1978 c 796 
 s 32; 1979 c 216 s 10; 1981 c 180 s 9; 1981 c 224 s 85,86; 1982 
 c 578 art 1 s 4; 1984 c 564 s 23; 1991 c 269 art 2 s 6; 1991 c 
 341 s 17; 1992 c 432 art 2 s 10 

     353.32 Refunds after death of member or former member. 

    Subdivision 1.    Before retirement.  If a member or 
 former member who terminated public service dies before 
 retirement or before receiving any retirement annuity and no 
 other payment of any kind is or may become payable to any 
 person, a refund shall be paid to the designated beneficiary or, 
 if there be none, to the surviving spouse, or, if none, to the 
 legal representative of the decedent's estate.  Such refund 
 shall be in an amount equal to accumulated deductions plus 
 interest thereon at the rate of six percent per annum compounded 
 annually less the sum of any disability or survivor benefits, if 
 any, that may have been paid by the fund; provided that a 
 survivor who has a right to benefits pursuant to section 353.31 
 may waive such benefits in writing, except such benefits for a 
 dependent child under the age of 18 years may only be waived 
 pursuant to an order of the district court. 

    Subd. 1a.    Surviving spouse optional annuity.  (a) If 
 a member or former member who has credit for not less than three 
 years of allowable service and dies before the annuity or 
 disability benefit begins to accrue under section 353.29, 
 subdivision 7, or 353.33, subdivision 2, notwithstanding any 
 designation of beneficiary to the contrary, the surviving spouse 
 may elect to receive, instead of a refund with interest under 
 subdivision 1, or surviving spouse benefits otherwise payable 
 under section 353.31, an annuity equal to the 100 percent joint 
 and survivor annuity that the member could have qualified for 
 had the member terminated service on the date of death.  

    (b) If the member was under age 55 and has credit for at 
 least 30 years of allowable service on the date of death, the 
 surviving spouse may elect to receive a 100 percent joint and 
 survivor annuity based on the age of the member and surviving 
 spouse on the date of death.  The annuity is payable using the 
 full early retirement reduction under section 353.30, 
 subdivisions 1b and 1c, to age 55 and one-half of the early 
 retirement reduction from age 55 to the age payment begins.  

    (c) If the member was under age 55 and has credit for at 
 least three years of allowable service on the date of death but 
 did not qualify for retirement, the surviving spouse may elect 
 to receive the 100 percent joint and survivor annuity based on 
 the age of the member and surviving spouse at the time of 
 death.  The annuity is payable using the full early retirement 
 reduction under section 353.30, subdivision 1, 1b, 1c, or 5, to 
 age 55 and one-half of the early retirement reduction from age 
 55 to the age payment begins. 

    Notwithstanding the definition of surviving spouse in 
 section 353.01, subdivision 20, a former spouse of the member, 
 if any, is entitled to a portion of the monthly surviving spouse 
 optional annuity if stipulated under the terms of a marriage 
 dissolution decree filed with the association.  If there is no 
 surviving spouse or child or children, a former spouse may be 
 entitled to a lump-sum refund payment under subdivision 1, if 
 provided for in a marriage dissolution decree but not a monthly 
 surviving spouse optional annuity despite the terms of a 
 marriage dissolution decree filed with the association. 

    The surviving spouse eligible for surviving spouse benefits 
 under paragraph (a) may apply for the annuity at any time after 
 the date on which the deceased employee would have attained the 
 required age for retirement based on the employee's allowable 
 service.  The surviving spouse eligible for surviving spouse 
 benefits under paragraph (b) or (c) may apply for an annuity any 
 time after the member's death.  The annuity must be computed 
 under sections 353.29, subdivisions 2 and 3; 353.30, 
 subdivisions 1, 1a, 1b, 1c, and 5; and 353.31, subdivision 3.  

    Sections 353.34, subdivision 3, and 353.71, subdivision 2, 
 apply to a deferred annuity or surviving spouse benefit payable 
 under this subdivision.  No payment may accrue beyond the end of 
 the month in which entitlement to the annuity has terminated or 
 upon expiration of the term certain benefit payment under 
 subdivision 1b.  An amount equal to any excess of the 
 accumulated contributions that were credited to the account of 
 the deceased employee over and above the total of the annuities 
 paid and payable to the surviving spouse must be paid to the 
 deceased member's last designated beneficiary or, if none, as 
 specified under subdivision 1.  

    A member may specify in writing that this subdivision does 
 not apply and that payment may be made only to the designated 
 beneficiary as otherwise provided by this chapter. 

    Subd. 1b.    Survivor coverage term certain.  In lieu of 
 the 100 percent optional annuity under subdivision 1a, or a 
 refund under subdivision 1, the surviving spouse of a deceased 
 member may elect to receive survivor coverage for a term certain 
 of five, ten, 15, or 20 years, but monthly payments must not 
 exceed 75 percent of the average high-five monthly salary of the 
 deceased member.  The monthly term certain annuity must be 
 actuarially equivalent to the 100 percent optional annuity under 
 subdivision 1a. 

    If a surviving spouse elects a term certain annuity and 
 dies before the expiration of the specified term certain period, 
 the commuted value of the remaining annuity payments must be 
 paid in a lump sum to the survivor's estate. 

    Subd. 1c.    Dependent child survivor coverage.  If 
 there is no surviving spouse eligible for benefits under 
 subdivision 1a, a dependent child or children as defined in 
 section 353.01, subdivision 15a, is eligible for monthly 
 payments.  Payments to a dependent child must be paid from the 
 date of the member's death to the date the dependent child 
 attains age 20 if the child is under age 15.  If the child is 15 
 years or older on the date of death, payment must be made for 
 five years.  The payment to a dependent child is an amount 
 actuarially equivalent to the value of a 100 percent optional 
 annuity under subdivision 1a using the age of the member and age 
 of the dependent child at the date of death in lieu of the age 
 of the surviving spouse.  If there is more than one dependent 
 child, each dependent child shall receive a proportionate share 
 of the actuarial value of the employee's account.  

    Subd. 2.    After retirement.  If a former member dies 
 after retirement and no payment of any kind is or may become 
 payable to any person, including any deferred benefit or 
 annuity, there shall be paid to the same succession of payees 
 set forth in subdivision 1, a refund of accumulated deductions, 
 less the total payments of all kinds made by the fund to the 
 former member during the former member's lifetime or to any 
 authorized person after death, without interest. 

    Subd. 3.    Optional survivor annuities; designated 
 beneficiary.  If a former member selected an optional annuity 
 by the terms of which an optional survivor's annuity was paid to 
 a survivor after the former member's death, upon the death of 
 the survivor there shall be paid to the former member's 
 designated beneficiary a refund of accumulated deductions less 
 the total payments of all kinds made by the fund to the former 
 member during the former member's lifetime or to any authorized 
 person after death.  If said beneficiary should die before 
 making application for such refund, the same shall be paid to 
 the legal representative of the estate of the former member.  

    Subd. 4.    Lack, or death, of beneficiary.  If a 
 member or former member dies without having designated a 
 beneficiary or if the beneficiary should die before making 
 application for refund, and if there is no surviving spouse, and 
 if the legal representative of such member or former member does 
 not apply for refund within five years from the date of death of 
 the member or former member, the accumulated deductions to the 
 member or former member's credit at the time of death shall be 
 disposed of in the manner provided in section 353.34, 
 subdivision 6. 

    Subd. 5.    $1,500 or less, limited.  If a member or 
 former member dies without having designated a beneficiary, or 
 if the beneficiary should die before making application for 
 refund of the sum to the credit of such decedent, and the amount 
 of the refund is $1,500 or less, the board of trustees may 90 
 days after the date of death, in the absence of probate 
 proceedings, make payment to the surviving spouse of the 
 decedent or, if none, to the decedent's personal representative 
 or, if none, to the estate.  A payment under this subdivision is 
 a bar to recovery by any other person or persons.  A retirement 
 annuity or disability or survivor benefit that has accrued at 
 the time of death of an annuitant, disabilitant, or survivor may 
 be paid in the same manner. 

    Subd. 6.  Repealed, 1963 c 641 s 38 

    Subd. 7.  Repealed, 1978 c 796 s 46 

    Subd. 8.  Repealed, 1971 c 106 s 40 

    Subd. 9.    Payment to a minor.  If a member or former 
 member dies having named as beneficiary a person who is a minor 
 at the time of the application for refund, the board may make 
 payment (a) directly to the minor, (b) to any person who has 
 legally qualified and is acting as guardian of the minor's 
 person or property in any jurisdiction, or (c) to either parent 
 of the minor or to any adult person with whom the minor may at 
 the time be living, provided only that the parent or other 
 person to whom any amount is to be paid shall have advised the 
 board in writing that the amount will be held or used in trust 
 for the benefit of such minor.  Any annuity or disability 
 benefit payable at the time of death of an annuitant or 
 recipient of a disability benefit, which is payable to a 
 beneficiary who is a minor, may be paid in the same manner.  
 Such payment shall be a bar to recovery by any other person or 
 persons. 

    HIST: 1957 c 935 s 12; 1959 c 646 s 2; 1959 c 650 s 42,48,58; 
 1963 c 641 s 22-24; 1969 c 940 s 7-9; 1971 c 106 s 26-28; 1973 c 
 35 s 56; 1973 c 753 s 48-52; 1974 c 229 s 16,17; 1975 c 102 s 
 14; 1977 c 429 s 28; 1978 c 471 s 5; 1978 c 796 s 33,34; 1979 c 
 216 s 11-13; 1981 c 180 s 10; 1981 c 224 s 87; 1983 c 73 s 6; 
 1984 c 564 s 24,25; 1986 c 444; 1986 c 458 s 12; 1987 c 372 art 
 9 s 13; 1988 c 709 art 5 s 17,18; 1989 c 319 art 13 s 35,36; 
 1991 c 341 s 18; 1992 c 432 art 2 s 11; 1993 c 307 art 6 s 2; 
 1993 c 336 art 6 s 7-9 

     353.33 Total and permanent disability benefits. 

    Subdivision 1.    Age, service, and salary requirements. 
  A coordinated member who has at least three years of 
 allowable service and becomes totally and permanently disabled 
 before normal retirement age, and a basic member who has at 
 least three years of allowable service and who becomes totally 
 and permanently disabled is entitled to a disability benefit in 
 an amount under subdivision 3.  If the disabled person's public 
 service has terminated at any time, at least two of the required 
 three years of allowable service must have been rendered after 
 last becoming a member.  A repayment of a refund must be made 
 within six months after the effective date of disability 
 benefits under subdivision 2 or within six months after the date 
 of the filing of the disability application, whichever is 
 later.  No purchase of prior service or payment made in lieu of 
 salary deductions otherwise authorized under section 353.01, 
 subdivision 16, 353.017, subdivision 4, or 353.36, subdivision 
 2, may be made after the occurrence of the disability for which 
 an application under this section is filed.  

    Subd. 2.    Applications; accrual of benefits.  Every 
 claim or demand for a total and permanent disability benefit 
 must be initiated by written application in the manner and form 
 prescribed by the executive director showing compliance with the 
 statutory conditions qualifying the applicant for a total and 
 permanent disability benefit and filed with the executive 
 director.  A member or former member who became totally and 
 permanently disabled during a period of membership shall file 
 application for total and permanent disability benefits within 
 three years next following termination of public service.  This 
 benefit begins to accrue the day following the commencement of 
 disability, 90 days preceding the filing of the application, or, 
 if annual or sick leave is paid for more than the 90-day period, 
 from the date salary ceased, whichever is later.  Payment must 
 not accrue beyond the end of the month in which entitlement has 
 terminated.  If the disabilitant dies prior to negotiating the 
 check for the month in which death occurs, payment is made to 
 the surviving spouse, or if none, to the designated beneficiary, 
 or if none, to the estate.  An applicant for total and permanent 
 disability benefits may file a retirement annuity application 
 under section 353.29, subdivision 4, simultaneously with an 
 application for total and permanent disability benefits.  The 
 retirement annuity application is void upon the determination of 
 the entitlement for disability benefits by the executive 
 director.  If disability benefits are denied, the retirement 
 annuity application must be initiated and processed. 

    Subd. 3.    Computation of benefits.  This disability 
 benefit is an amount equal to the normal annuity payable to a 
 member who has reached normal retirement age with the same 
 number of years of allowable service and the same average 
 salary, as provided in section 353.29, subdivisions 2 and 3. 

    A basic member shall receive a supplementary monthly 
 benefit of $25 to age 65 or the five-year anniversary of the 
 effective date of the disability benefit, whichever is later. 

    If the disability benefits under this subdivision exceed 
 the average salary as defined in section 353.29, subdivision 2, 
 the disability benefits must be reduced to an amount equal to 
 said average salary. 

    Subd. 3a.    Correctional employee disability benefit 
 coverage.  (a) For purposes of the disability benefit coverage 
 provided under this subdivision, a local government correctional 
 service employee is a person who: 

    (1) is an "essential employee" as defined in section 
 179A.03, subdivision 7; 

    (2) is employed in a county-administered jail or 
 correctional facility or in a regional correctional facility 
 administered by multiple counties; 

    (3) spends at least 75 percent of the employee's working 
 time in direct contact with persons confined in the jail or 
 facility, as certified by the employer to the executive director 
 of the association before August 1, 1998, or within 30 days of 
 employment in the qualifying county employment position, 
 whichever is later; and 

    (4) is a "public employee" as defined in section 353.01, 
 and is not a member of the public employees retirement 
 association police and fire fund. 

    (b) A local government correctional employee who becomes 
 disabled and physically or mentally unfit to perform the duties 
 of the position as a direct result of an injury, sickness, or 
 other disability incurred in or arising out of any act of duty 
 that renders the employee physically or mentally unable to 
 perform the employee's correctional facility duties, is entitled 
 to a disability benefit based on covered service under this 
 chapter only in an amount equal to 45 percent of the average 
 salary defined in section 353.29, subdivision 2, plus an 
 additional 1.8 percent for each year of service as a 
 correctional service employee after July 1, 1998, in excess of 
 25 years. 

    (c) If the eligible employee is entitled to receive a 
 disability benefit as provided in paragraph (b) and has credit 
 for less covered correctional service than the length of service 
 upon which the correctional disability benefit is based, and 
 also has credit for regular plan service, the employee is 
 entitled to a disability benefit or deferred retirement annuity 
 based on the regular plan service only for the service that, 
 when combined with the correctional service, exceeds the number 
 of years on which the correctional disability benefit is based.  
 The disabled employee who also has credit for regular plan 
 service must in all respects qualify under section 353.33 to be 
 entitled to receive a disability benefit based on the regular 
 plan service, except that the service may be combined to satisfy 
 length of service requirements.  Any deferred annuity to which 
 the employee may be entitled based on regular plan service must 
 be augmented as provided in section 353.71 while the employee is 
 receiving a disability benefit under this subdivision. 

    Subd. 3b.    Optional annuity election.  A disabled 
 member may elect to receive the normal disability benefit or an 
 optional annuity under section 353.30, subdivision 3.  The 
 election of an optional annuity must be made prior to the 
 commencement of payment of the disability benefit.  The optional 
 annuity must begin to accrue on the same date as provided for 
 the disability benefit.  

    (1) If a person who is not the spouse of a member is named 
 as beneficiary of the joint and survivor optional annuity, the 
 person is eligible to receive the annuity only if the spouse, on 
 the disability application form prescribed by the executive 
 director, permanently waives the surviving spouse benefits under 
 sections 353.31, subdivision 1, and 353.32, subdivision 1a.  If 
 the spouse of the member refuses to permanently waive the 
 surviving spouse coverage, the selection of a person other than 
 the spouse of the member as a joint annuitant is invalid. 

    (2) If the spouse of the member permanently waives survivor 
 coverage, the dependent children, if any, continue to be 
 eligible for survivor benefits under section 353.31, subdivision 
 1, including the minimum benefit in section 353.31, subdivision 
 1a.  The designated optional annuity beneficiary may draw the 
 monthly benefit; however, the amount payable to the dependent 
 child or children and joint annuitant must not exceed the 70 
 percent maximum family benefit under section 353.31, subdivision 
 1a.  If the maximum is exceeded, the benefit of the joint 
 annuitant must be reduced to the amount necessary so that the 
 total family benefit does not exceed the 70 percent maximum 
 family benefit amount. 

    (3) If the spouse is named as the beneficiary of the joint 
 and survivor optional annuity, the spouse may draw the monthly 
 benefits; however, the amount payable to the dependent child or 
 children and the joint annuitant must not exceed the 70 percent 
 maximum family benefit under section 353.31, subdivision 1a.  If 
 the maximum is exceeded, each dependent child will receive ten 
 percent of the member's specified average monthly salary, and 
 the benefit to the joint annuitant must be reduced to the amount 
 necessary so that the total family benefit does not exceed the 
 70 percent maximum family benefit amount.  The joint and 
 survivor optional annuity must be restored to the surviving 
 spouse, plus applicable postretirement adjustments under section 
 356.41, as the dependent child or children become no longer 
 dependent under section 353.01, subdivision 15. 

    Subd. 4.    Procedure to determine eligibility.  The 
 applicant shall provide and authorize release of medical 
 evidence, including all medical records and relevant information 
 from any source, to support the application for total and 
 permanent disability benefits.  The medical adviser shall verify 
 the medical evidence and, if necessary for disability 
 determination, suggest referral of applicant to specialized 
 medical consultants.  The association shall also obtain from the 
 employer, certification of the member's past public service, 
 dates of paid sick leave and vacation beyond the last working 
 day and whether or not sick leave or annual leave has been 
 allowed.  If upon consideration of the medical evidence received 
 and the recommendations of the medical adviser, it is determined 
 that the applicant is totally and permanently disabled within 
 the meaning of the law, the association shall grant the person a 
 disability benefit.  The fact that an employee is placed on 
 leave of absence without compensation because of disability does 
 not bar the person from receiving a disability benefit. 

    Subd. 5.    Benefits paid under workers' compensation law. 
  Disability benefits paid shall be coordinated with any 
 amounts received or receivable under workers' compensation law, 
 such as temporary total, permanent total, temporary partial, 
 permanent partial, or economic recovery compensation benefits, 
 in either periodic or lump sum payments from the employer under 
 applicable workers' compensation laws, after deduction of amount 
 of attorney fees, authorized under applicable workers' 
 compensation laws, paid by a disabilitant.  If the total of the 
 single life annuity actuarial equivalent disability benefit and 
 the workers' compensation benefit exceeds:  (1) the salary the 
 disabled member received as of the date of the disability or (2) 
 the salary currently payable for the same employment position or 
 an employment position substantially similar to the one the 
 person held as of the date of the disability, whichever is 
 greater, the disability benefit must be reduced to that amount 
 which, when added to the workers' compensation benefits, does 
 not exceed the greater of the salaries described in clauses (1) 
 and (2). 

    Subd. 5a. Repealed, 1991 c 341 s 51 

    Subd. 5b.    Benefits paid under workers' compensation 
 law.  A disabled member who is eligible to receive a 
 disability benefit under subdivision 5 as of June 30, 1987, and 
 whose disability benefit amount had been reduced prior to July 
 1, 1987, as a result of the receipt of workers' compensation 
 benefits, must have the disability benefit payment amount 
 restored, as of July 1, 1987, calculated in accordance with 
 subdivision 5.  However, a disabled member is not entitled to 
 receive retroactive repayment of any disability benefit amounts 
 lost before July 1, 1987, as a result of the reduction required 
 before that date because of the receipt of workers' compensation 
 benefits. 

    Any disability benefit overpayments made before July 1, 
 1987, and occurring because of the failure to reduce the 
 disability benefit payment to the extent required because of the 
 receipt of workers' compensation benefits, may be collected by 
 the association through the reduction of disability benefit or 
 annuity payment made on or after July 1, 1987, until the 
 overpayment is fully recovered. 

    Subd. 6.    Continuing eligibility for benefits.  The 
 association shall determine eligibility for continuation of 
 disability benefits and require periodic examinations and 
 evaluations of disabled members as frequently as deemed 
 necessary.  The association shall require the disabled member to 
 provide and authorize release of medical evidence, including all 
 medical records and information from any source, relating to an 
 application for continuation of disability benefits.  Disability 
 benefits are contingent upon a disabled person's participation 
 in a vocational rehabilitation program if the executive director 
 determines that the disabled person may be able to return to a 
 gainful occupation.  If a member is found to be no longer 
 totally and permanently disabled and is reinstated to the 
 payroll, payments must cease the first of the month following 
 the reinstatement to the payroll. 

    Subd. 6a.    Medical adviser.  The executive director 
 may contract with licensed physicians or physicians on the staff 
 of the state commissioner of health, as designated by the 
 commissioner, to be the medical adviser of the association. 

    Subd. 6b.    Duties of the medical adviser.  At the 
 request of the executive director, the medical adviser shall 
 designate licensed physicians to examine applicants for 
 disability benefits and review the medical reports based upon 
 these examinations to determine whether an applicant is totally 
 and permanently disabled as defined in section 353.01, 
 subdivision 19, disabled as defined in section 353.656, or 
 eligible for continuation of disability benefits under 
 subdivision 6.  The medical examiner shall also review, at the 
 request of the executive director, all medical statements on 
 behalf of an applicant for disability benefits, and shall report 
 in writing to the executive director conclusions and 
 recommendations on those matters referred for advice. 

    Subd. 7.    Partial reemployment.  If, following a work 
 or non-work-related injury or illness, a disabled person resumes 
 a gainful occupation from which earnings are less than the 
 salary at the date of disability or the salary currently paid 
 for similar positions, the board shall continue the disability 
 benefit in an amount that, when added to the earnings and 
 workers' compensation benefit, does not exceed the salary at the 
 date of disability or the salary currently paid for similar 
 positions, whichever is higher, provided the disability benefit 
 does not exceed the disability benefit originally allowed, plus 
 any postretirement adjustments payable after December 31, 1988, 
 in accordance with section 11A.18, subdivision 10.  No 
 deductions for the retirement fund may be taken from the salary 
 of a disabled person who is receiving a disability benefit as 
 provided in this subdivision. 

    Subd. 8.    Refusal of examination or medical evidence.  
 If a person applying for or receiving a disability benefit 
 refuses to submit to a medical examination under subdivision 6, 
 or fails to provide or authorize the release of medical evidence 
 under subdivisions 4 and 6, the association shall cease the 
 application process or discontinue the payment of a disability 
 benefit, whichever is applicable.  Upon receipt of the requested 
 medical evidence, the association shall resume the application 
 process or the payment of a disability benefit upon approval for 
 the continuation, whichever is applicable.  

    Subd. 9.    Return to public service.  Any person 
 receiving a disability benefit who is restored to active public 
 service except persons receiving benefits as provided in 
 subdivision 7, shall have deductions taken for the retirement 
 fund and upon subsequent retirement have the retirement annuity 
 payable based upon all allowable service including that upon 
 which the disability benefits were based. 

    Subd. 10.  Repealed, 1973 c 753 s 85 

    Subd. 11.    Coordinated member retirement status.  No 
 person is entitled to receive disability benefits and a 
 retirement annuity at the same time.  The disability benefits 
 paid to a coordinated member must terminate when the person 
 reaches normal retirement age.  If the coordinated member is 
 still totally and permanently disabled upon attaining normal 
 retirement age, the coordinated member is deemed to be on 
 retirement status.  If an optional annuity is elected under 
 subdivision 3a, the coordinated member shall receive an annuity 
 under the terms of the optional annuity previously elected, or, 
 if an optional annuity is not elected under subdivision 3a, the 
 coordinated member may elect to receive a normal retirement 
 annuity under section 353.29 or an annuity equal to the 
 disability benefit paid before the coordinated member reaches 
 normal retirement age, whichever amount is greater, or elect to 
 receive an optional annuity under section 353.30, subdivision 
 3.  The annuity of a disabled coordinated member who attains 
 normal retirement age must be computed under the law in effect 
 upon attainment of normal retirement age.  Election of an 
 optional annuity must be made before the coordinated member 
 attains normal retirement age.  If an optional annuity is 
 elected, the election is effective on the date on which the 
 person attains normal retirement age and the optional annuity 
 begins to accrue on the first day of the month next following 
 the month in which the person attains that age.  

    Subd. 12.    Basic disability survivor benefits.  If a 
 basic member who is receiving a disability benefit under 
 subdivision 3: 

    (a) dies before attaining age 65 or within five years of 
 the effective date of the disability, whichever is later, the 
 surviving spouse shall receive a survivor benefit under section 
 353.31, unless the surviving spouse elected to receive a refund 
 under section 353.32, subdivision 1. 

    (b) is living at age 65 or five years after the effective 
 date of the disability, whichever is later, the basic member may 
 continue to receive a normal disability benefit, or elect a 
 joint and survivor optional annuity under section 353.31, 
 subdivision 1b.  The election of the joint and survivor optional 
 annuity must occur within 90 days of age 65 or the five-year 
 anniversary of the effective date of the disability benefit, 
 whichever is later.  The optional annuity takes effect on the 
 first of the month following the month in which the person 
 attains age 65 or reaches the five-year anniversary of the 
 effective date of the disability benefit, whichever is later. 

    (c) if there is a dependent child or children under 
 paragraph (a) or (b), the association shall grant a dependent 
 child benefit under section 353.31, subdivision 1b, paragraph 
 (b). 

    HIST: 1957 c 935 s 13; 1959 c 650 s 21,41; 1961 c 595 s 2; 
 1963 c 641 s 25; 1965 c 880 s 6; 1967 c 711 s 1; Ex1967 c 37 s 
 2,3; 1969 c 940 s 10; 1971 c 106 s 29,30; 1973 c 753 s 53-56; 
 1975 c 102 s 15-17; 1975 c 359 s 23; 1976 c 329 s 23-25; 1977 c 
 305 s 45; 1977 c 429 s 29,30; 1978 c 471 s 6; 1978 c 796 s 35; 
 1979 c 216 s 14; 1981 c 68 s 21,22; 1981 c 180 s 11-13; 1981 c 
 224 s 88; 1983 c 73 s 7; 1983 c 85 s 1; 1984 c 564 s 26; 1986 c 
 444; 1987 c 284 art 5 s 9; 1987 c 372 art 9 s 14-16; 1988 c 709 
 art 5 s 19; 1989 c 319 art 3 s 12-16; art 13 s 37-39; 1991 c 341 
 s 19; 1992 c 432 art 2 s 12-15; 1993 c 307 art 4 s 19-26; 1998 c 
 390 art 9 s 3 

     353.34 Rights upon termination of membership. 

    Subdivision 1.    Refund or deferred annuity.  A former 
 member is entitled to a refund of accumulated employee 
 deductions under subdivision 2, or to a deferred annuity under 
 subdivision 3.  An active member of a fund enumerated in section 
 356.30, subdivision 3, clause (7), (8), or (14), who terminates 
 public service in any of those funds and becomes a member of 
 another fund enumerated in those clauses may receive a refund of 
 employee contributions plus six percent interest compounded 
 annually from the fund in which the member terminated service.  
 Application for a refund may not be made prior to the date of 
 termination of public service or the termination of membership, 
 whichever is sooner.  A refund must be paid within 120 days 
 following receipt of the application unless the applicant has 
 again become a public employee required to be covered by the 
 association. 

    Subd. 2.    Refund with interest.  Except as provided in 
 subdivision 1, any person who ceases to be a public employee 
 shall receive a refund in an amount equal to accumulated 
 deductions with interest to the first day of the month in which 
 the refund is processed at the rate of six percent compounded 
 annually based on fiscal year balances.  If a person repays a 
 refund and subsequently applies for another refund, the 
 repayment amount, including interest, is added to the fiscal 
 year balance in which the repayment was made. 

    Subd. 3.    Deferred annuity; eligibility; computation.  
 A member with at least three years of allowable service when 
 termination of public service or termination of membership 
 occurs has the option of leaving the accumulated deductions in 
 the fund and being entitled to a deferred retirement annuity 
 commencing at normal retirement age or to a deferred early 
 retirement annuity under section 353.30, subdivision 1, 1a, 1b, 
 1c, or 5.  The deferred annuity must be computed under section 
 353.29, subdivisions 2 and 3, on the basis of the law in effect 
 on the date of termination of public service or termination of 
 membership and must be augmented as provided in section 353.71, 
 subdivision 2.  A former member qualified to apply for a 
 deferred retirement annuity may revoke this option at any time 
 before the commencement of deferred annuity payments by making 
 application for a refund.  The person is entitled to a refund of 
 accumulated member contributions within 30 days following date 
 of receipt of the application by the executive director. 

    Subd. 3a.    Deferred annuity; certain hospital employees. 
  Any member employed by a public hospital, as defined in 
 section 355.71, subdivision 3, who has at least three years of 
 allowable service credit on the date the public hospital is 
 taken over by a private corporation or organization, may elect 
 to receive a deferred annuity pursuant to subdivision 3 
 notwithstanding the length of service requirement contained 
 therein.  

    Subd. 3b.    Deferred annuity; certain former municipal 
 court judges.  Any person who qualified for membership in the 
 association solely because of service as a municipal court 
 judge, whose service as a municipal court judge was terminated 
 by Laws 1971, chapter 951, section 9, and who elected to leave 
 accumulated deductions in the fund to qualify for a deferred 
 annuity, may receive a deferred early retirement annuity under 
 section 353.30, subdivision 1, 1a, 1b, or 1c, notwithstanding 
 the law in effect on the date of termination of public service. 

    Subd. 4.  Repealed, 1971 c 106 s 40 

    Subd. 5.    Refundment generally unlimited.  The right 
 of refundment provided in this chapter, and laws amendatory 
 thereof, is not restricted as to time unless specifically 
 provided and the statute of limitation does not apply thereto. 

    Subd. 6.    Additions to fund.  The board of trustees 
 may credit to the fund any moneys received in the form of 
 contributions, donations, gifts, appropriations, bequests, or 
 otherwise. 

    Subd. 7.    Sick leave.  A member who is on an 
 authorized sick leave and has received a maximum of one year of 
 allowable service in accordance with section 353.01, subdivision 
 16, paragraph (4), and who does not return to public service for 
 at least 120 calendar days following the year of allowable 
 service may elect to receive a refund of accumulated deductions 
 as provided in subdivision 2.  Application for a refund may not 
 be made before the expiration of 120 calendar days following the 
 end of one year of allowable service for employees on authorized 
 sick leave. 

    HIST: 1957 c 935 s 14; 1959 c 650 s 22-24,49; 1963 c 641 s 
 26-29; 1969 c 940 s 11; 1971 c 106 s 31; 1971 c 412 s 1; 1973 c 
 753 s 57-59; 1975 c 102 s 6; 1976 c 329 s 26; 1978 c 796 s 36; 
 1979 c 216 s 15; 1981 c 224 s 89; 1983 c 58 s 1; 1983 c 73 s 8; 
 1984 c 564 s 27; 1984 c 574 s 10; 1985 c 261 s 4; 1986 c 444; 
 1987 c 284 art 5 s 10; 1987 c 372 art 9 s 17; 1988 c 709 art 5 s 
 20; 1989 c 319 art 3 s 17; art 13 s 40-42; 1991 c 341 s 20; 1992 
 c 432 art 2 s 16; 1993 c 307 art 4 s 27,28 

     353.35 Consequences of refund; repayment, rights 
  restored. 

    Subdivision 1.    Refund rights.  When any former member 
 accepts a refund, all existing service credits and all rights 
 and benefits to which the person was entitled prior to the 
 acceptance of the refund must terminate.  The rights and 
 benefits of a former member must not be restored until the 
 person returns to active service and acquires at least six 
 months of allowable service credit after taking the last refund 
 and repays the refund or refunds taken and interest received 
 under section 353.34, subdivisions 1 and 2, plus interest at an 
 annual rate of 8.5 percent compounded annually.  If the person 
 elects to restore service credit in a particular fund from which 
 the person has taken more than one refund, the person must repay 
 all refunds to that fund.  All refunds must be repaid within six 
 months of the last date of termination of public service. 

    Subd. 2.    Refund repayment.  A person who receives a 
 refund of accumulated employee deductions, plus interest, may 
 repay the total amount of the refund including the interest, 
 within 30 days of the date the refund was issued, to retain 
 allowable service. 

    HIST: 1957 c 935 s 15; 1959 c 650 s 38; 1963 c 641 s 30; 1971 
 c 106 s 32; 1973 c 753 s 60; 1976 c 329 s 27; 1979 c 216 s 16; 
 1982 c 404 s 6; 1986 c 444; 1989 c 319 art 3 s 18; 1990 c 570 
 art 11 s 7; 1992 c 598 art 2 s 6; 1993 c 307 art 4 s 29 

     353.36 Purchases of prior service credit. 

    Subdivision 1.  Repealed, 1971 c 106 s 40 

    Subd. 2.    Employee contributions; interest; matching 
 payment.  A member who has at least one year of allowable 
 service with the association, whose public service terminated 
 before July 1, 1982, and who has prior public service on which 
 salary deductions were not taken for the retirement fund and who 
 does not have the required minimum number of years of allowable 
 service credit to qualify for an annuity, may apply for an 
 annuity if otherwise qualified, and within 90 days thereafter 
 purchase whatever period of the member's prior public service 
 which is necessary to bring the member's total allowable service 
 credit to the minimum, provided that the most recent period of 
 prior uncredited public service is purchased first.  The member 
 may gain allowable service credit by paying on the salary 
 covered under the law in effect at the time that the prior 
 public service was performed.  The applicable member 
 contribution percentages for a basic member and a coordinated 
 member are the current contribution percentages under section 
 353.27, subdivision 2.  An amount equal to the employer and 
 employer additional contributions specified in section 353.27, 
 subdivisions 3 and 3a, plus interest on the total amount 
 representing employee, employer and employer additional 
 contributions at an annual rate of 8.5 percent compounded 
 annually from the date first payable to the date payment is 
 made, must also be paid.  The employer, at its sole discretion, 
 may agree to pay the amount representing the employer and 
 employer additional contributions under subdivision 2a.  An 
 annuity accrues under section 353.29, subdivision 7, but is not 
 paid until the applicant's payment is made in full for the prior 
 public service.  If payment is not made within such 90 days, the 
 application for retirement is void. 

    Subd. 2a.    Matching payment; employer may assume.  Any 
 employer may certify to the association that it assumes the 
 matching payment under subdivision 2 with respect to all persons 
 who exercise the option provided in subdivision 2 and pay such 
 amount pursuant to section 353.28. 

    Subd. 2b.    Purchases of prior service credit; limited.  
  After June 30, 1973, no person shall be allowed to purchase 
 prior public service credit, except as provided in subdivision 2.

    Subd. 2c.    Refund of additional payments made on total 
 salary.  Any member who elected to pay additional 
 contributions and interest based on total salary received in 
 excess of prior salary limitations may make application to the 
 board of trustees for return of the total amount so paid, but 
 not less than the total amount of such contributions and 
 interest; provided, however, said amount shall be so returned 
 without interest thereon.  Any member who accepts a refund 
 hereunder shall thereby relinquish all contributory credit with 
 respect to payments which were made on total salary.  No 
 matching amount paid by the employer, or assumed by the employer 
 pursuant to certification, shall be repaid. 

    Subd. 2d.  Repealed, 1977 c 429 s 65 

    Subd. 3.  Repealed, 1971 c 106 s 40 

    Subd. 4.  Repealed, 1965 c 715 s 4 

    Subd. 5.  Repealed, 1973 c 753 s 85 

    Subd. 6.  Repealed, 1973 c 753 s 85 

    Subd. 7.  Repealed, 1973 c 753 s 85 

    Subd. 8.  Repealed, 1973 c 753 s 85 

    Subd. 9.  Repealed, 1973 c 753 s 85 

    Subd. 10.  Repealed, 1973 c 753 s 85 

    HIST: 1957 c 935 s 16; 1959 c 650 s 25,58; 1965 c 715 s 1-3; 
 1967 c 687 s 1; 1969 c 999 s 3; 1971 c 106 s 33; 1973 c 753 s 
 61,62; 1974 c 229 s 18; 1977 c 429 s 31; 1978 c 796 s 37; 1981 c 
 224 s 90; 1982 c 404 s 7; 1987 c 284 art 5 s 11; 1992 c 598 art 
 2 s 7 

     353.37 Public reemployment of annuitant. 

    Subdivision 1.    Salary maximums.  The annuity of a 
 person otherwise eligible for an annuity under this chapter must 
 be suspended under subdivision 2 or reduced under subdivision 3, 
 whichever results in the higher annual annuity amount, if the 
 person reenters public service as a nonelective employee of a 
 governmental subdivision in a position covered by this chapter 
 or returns to work as an employee of a labor organization that 
 represents public employees who are association members under 
 this chapter and salary for the reemployment service exceeds the 
 annual maximum earnings allowable for that age for the continued 
 receipt of full benefit amounts monthly under the federal Old 
 Age, Survivors and Disability Insurance Program as set by the 
 secretary of health and human services under United States Code, 
 title 42, section 403, in any calendar year.  If the person has 
 not yet reached the minimum age for the receipt of social 
 security benefits, the maximum salary for the person is equal to 
 the annual maximum earnings allowable for the minimum age for 
 the receipt of social security benefits.  

    Subd. 1a. Repealed, 1981 c 180 s 18 

    Subd. 2.  MS 1971 Repealed, 1973 c 753 s 85 

    Subd. 2.    Suspension of annuity.  The association 
 shall suspend the annuity on the first of the month after the 
 month in which the salary of the reemployed annuitant exceeds 
 the maximums set in subdivision 1, based only on those months in 
 which the annuitant is actually employed in nonelective public 
 service in a position covered under this chapter or employment 
 with a labor organization that represents public employees who 
 are association members under this chapter.  An annuitant who is 
 elected to public office after retirement may hold office and 
 receive an annuity otherwise payable from the association. 

    Subd. 3.  MS 1971 Repealed, 1973 c 753 s 85 

    Subd. 3.    Reduction of annuity.  The association shall 
 reduce the amount of the annuity as follows: 

    (a) for a person who has not reached normal retirement age, 
 one-half of the amount in excess of the applicable reemployment 
 income maximum under subdivision 1; 

    (b) for a person who has reached normal retirement age, but 
 has not reached age 70, one-third of the amount in excess of the 
 applicable reemployment income maximum under subdivision 1; 

    (c) for a person who has reached age 70, or for salary 
 earned through service in an elected office, there is no 
 reduction upon reemployment, regardless of income.  

    Subd. 4.    Resumption of annuity.  The association 
 shall resume paying a full annuity to the reemployed annuitant 
 at the start of each calendar year until the salary exceeds the 
 maximums under subdivision 1, or on the first of the month 
 following termination of employment which resulted in the 
 suspension of the annuity.  The executive director may adopt 
 policies regarding the suspension and reduction of annuities 
 under this section.  

    Subd. 5.    Effect on annuity.  Except as provided under 
 this section, public service performed by an annuitant 
 subsequent to retirement under this chapter does not increase or 
 decrease the amount of an annuity.  The annuitant shall not make 
 any further contributions to the association's defined benefit 
 plan by reason of this subsequent public service. 

    HIST: 1957 c 935 s 17; 1959 c 650 s 26,58; Ex1961 c 87 s 1; 
 1963 c 641 s 31; 1963 c 853 s 1,2; 1967 c 711 s 2; 1971 c 412 s 
 2; 1973 c 753 s 63; 1975 c 102 s 18; 1977 c 429 s 32; 1980 c 342 
 s 7; 1981 c 224 s 91; 1988 c 709 art 5 s 21; 1992 c 440 s 1; 
 1993 c 307 art 4 s 30; 1994 c 528 art 2 s 9-11 

  353.38 Repealed, 1984 c 564 s 51 

  353.39 Repealed, 1973 c 753 s 85 

  353.40 Repealed, 1974 c 229 s 25 

  353.41 Repealed, 1959 c 650 s 57 

  353.42 Repealed, 1963 c 641 s 38 

  353.43 Repealed, 1959 c 650 s 57 

    353.44 Subdivision 1.  Repealed, 1973 c 753 s 85 

    Subd. 2.  Repealed, 1963 c 641 s 38 

  353.45 Repealed, 1973 c 753 s 85 

     353.46 Savings clauses. 

    Subdivision 1. Repealed, 1981 c 180 s 18 

    Subd. 1a.    Purchase of allowable service; annuity.  A 
 person who purchased allowable service in the public employees 
 retirement association for a period of time including June 30, 
 1957, but was not in fact a member of the association on June 
 30, 1957, shall not be entitled to receive retirement annuity 
 computed under Minnesota Statutes 1971, section 353.46, 
 subdivision 1.  This section shall have retroactive application 
 to any such person receiving or found eligible by the district 
 court to receive benefits calculated under Minnesota Statutes 
 1971, section 353.46, subdivision 1. 

    Subd. 2.  The right of a deferred annuitant or other former 
 member to receive an annuity under the law in effect at the time 
 such person terminated public service is herein preserved; 
 provided, however, the provisions of section 353.71, subdivision 
 2, as amended by Laws 1973, chapter 753 shall apply to a 
 deferred annuitant or other former member who first begins 
 receiving an annuity after July 1, 1973. 

    Subd. 3.  Repealed, 1977 c 429 s 65 

    Subd. 4.  Except as provided in section 353.84, the rights 
 of a survivor of a former member, where such former member died 
 prior to June 30, 1973, must be determined by the law in effect 
 when such former member died even though a benefit is not 
 payable until after June 30, 1973.  If the survivor is also 
 eligible to receive a retirement annuity from the association, 
 the survivor is eligible to receive both benefits even upon 
 remarriage.  

    Subd. 5.  Repealed, 1973 c 753 s 85 

    Subd. 6.    Computation of benefits for certain 
 coordinated members.  Any coordinated member who prior to July 
 1, 1979 was a member of the coordinated program of the 
 Minneapolis municipal employees retirement fund and who prior to 
 July 1, 1978 was a member of the basic program of the 
 Minneapolis municipal employees retirement fund shall:  

    (1) be entitled to receive a retirement annuity when 
 otherwise qualified, the calculation of which shall utilize the 
 formula accrual rates specified in section 422A.15, subdivision 
 1, for that portion of credited service which was rendered prior 
 to July 1, 1978, and the formula accrual rates specified in 
 section 353.29, subdivision 3, for the remainder of credited 
 service, both applied to the average salary as specified in 
 section 353.29, subdivision 2.  The formula accrual rates to be 
 used in calculating the retirement annuity shall recognize the 
 service after July 1, 1978 as a member of the coordinated 
 program of the Minneapolis municipal employees retirement fund 
 and after July 1, 1979 as a member of the public employees 
 retirement association as a continuation of service rendered 
 prior to July 1, 1978.  The annuity amount attributable to 
 service as a member of the basic program of the Minneapolis 
 municipal employees retirement fund shall be payable by the 
 Minneapolis employees retirement fund and the annuity amount 
 attributable to all other service shall be payable by the public 
 employees retirement association; 

    (2) retain eligibility when otherwise qualified for a 
 disability benefit from the Minneapolis employees retirement 
 fund until July 1, 1982, notwithstanding coverage by the public 
 employees retirement association, if the member has or would, 
 without the transfer of retirement coverage from the basic 
 program of the Minneapolis municipal employees retirement fund 
 to the coordinated program of the Minneapolis municipal 
 employees retirement fund or from the coordinated program of the 
 Minneapolis municipal employees retirement fund to the public 
 employees retirement fund, have sufficient credited service 
 prior to January 1, 1983, to meet the minimum service 
 requirements for a disability benefit pursuant to section 
 422A.18.  The disability benefit amount attributable to service 
 as a member of the basic program of the Minneapolis municipal 
 employees retirement fund shall be payable by the Minneapolis 
 employees retirement fund and the disability benefit amount 
 attributable to all other service shall be payable by the public 
 employees retirement association.  

    HIST: 1957 c 935 s 26; 1959 c 650 s 27; Ex1961 c 87 s 2; 1965 
 c 814 s 1,3; 1971 c 106 s 36; 1973 c 753 s 65-68; 1975 c 102 s 
 19; 1977 c 4 29 s 33; 1981 c 224 s 93,94; 1981 c 298 s 11; 1990 
 c 570 art 11 s 8; 1991 c 341 s 21 

  353.51 Repealed, 1973 c 753 s 85 

  353.52 Repealed, 1973 c 753 s 85 

  353.53 Repealed, 1973 c 753 s 85 

  353.54 Repealed, 1973 c 753 s 85 

  353.55 Repealed, 1973 c 753 s 85 

  353.56 Repealed, 1973 c 753 s 85 

  353.57 Repealed, 1973 c 753 s 85 

  353.58 Repealed, 1973 c 753 s 85 

  353.59 Repealed, 1973 c 753 s 85 

  353.591 Repealed, 1973 c 753 s 85 

  353.60 Repealed, 1973 c 753 s 85 

  353.61 Repealed, 1973 c 753 s 85 

  353.62 Repealed, 1971 c 106 s 40 

     353.63 Policy.  

    It is the recognized policy of the state that special 
 consideration should be given to employees of governmental 
 subdivisions who devote their time and skills to protecting the 
 property and personal safety of others.  Since this work is 
 hazardous, special provisions are hereby made for retirement 
 pensions, disability benefits and survivors benefits based on 
 the particular dangers inherent in these occupations.  The 
 benefits provided in sections 353.63 to 353.68 are more costly 
 than similar benefits for other public employees since they are 
 computed on the basis of a shorter working lifetime taking into 
 account experience which has been universally recognized.  This 
 extra cost should be borne by the employee and employer alike at 
 the ratio of 40 percent employee contributions and 60 percent 
 employer contributions.  

    HIST: 1959 c 650 s 31 

     353.64 Membership; qualifications; police officer, 
  firefighter. 

    Subdivision 1.    Police and fire fund membership.  (a) 
 A person who prior to July 1, 1961, was a member of the police 
 and fire fund, by virtue of being a police officer or 
 firefighter, shall, as long as the person remains in either 
 position, continue membership in the fund.  

    (b) A person who was employed by a governmental subdivision 
 as a police officer and was a member of the police and fire fund 
 on July 1, 1978, by virtue of being a police officer as defined 
 by this section on that date, and if employed by the same 
 governmental subdivision in a position in the same department in 
 which the person was employed on that date, shall continue 
 membership in the fund whether or not that person has the power 
 of arrest by warrant after that date. 

    (c) A person who was employed by a governmental subdivision 
 as a police officer or a firefighter, whichever applies, was an 
 active member of the local police or salaried firefighters 
 relief association located in that governmental subdivision by 
 virtue of that employment as of the effective date of the 
 consolidation as authorized by sections 353A.01 to 353A.10, and 
 has elected coverage by the public employees police and fire 
 fund benefit plan, shall become a member of the police and fire 
 fund after that date if employed by the same governmental 
 subdivision in a position in the same department in which the 
 person was employed on that date. 

    (d) Any other employee serving on a full-time basis as a 
 police officer or firefighter on or after July 1, 1961, shall 
 become a member of the public employees police and fire fund.  

    (e) An employee serving on less than a full-time basis as a 
 police officer shall become a member of the public employees 
 police and fire fund only after a resolution stating that the 
 employee should be covered by the police and fire fund is 
 adopted by the governing body of the governmental subdivision 
 employing the person declaring that the position which the 
 person holds is that of a police officer. 

    (f) An employee serving on less than a full-time basis as a 
 firefighter shall become a member of the public employees police 
 and fire fund only after a resolution stating that the employee 
 should be covered by the police and fire fund is adopted by the 
 governing body of the governmental subdivision employing the 
 person declaring that the position which the person holds is 
 that of a firefighter. 

    (g) A police officer or firefighter employed by a 
 governmental subdivision who by virtue of that employment is 
 required by law to be a member of and to contribute to any 
 police or firefighter relief association governed by section 
 69.77 which has not consolidated with the public employees 
 police and fire fund and any police officer or firefighter of a 
 relief association that has consolidated with the association 
 for which the employee has not elected coverage by the public 
 employees police and fire fund benefit plan as provided in 
 sections 353A.01 to 353A.10 shall not become a member of the 
 public employees police and fire fund. 

    Subd. 2.  Before a governing body may declare a position to 
 be that of a police officer, the duties of the person so 
 employed must, as a minimum, include employment as an officer of 
 a designated police department or sheriff's office or person in 
 charge of a designated police department or sheriff's office 
 whose primary job it is to enforce the law, who is licensed by 
 the Minnesota board of peace officer standards and training 
 under sections 626.84 to 626.863, who is engaged in the hazards 
 of protecting the safety and property of others, and who has the 
 power to arrest by warrant.  A police officer who is 
 periodically assigned to employment duties not within the scope 
 of this subdivision may contribute to the public employees 
 police and fire fund for all service, if a resolution declaring 
 that the primary position held by the person is that of a police 
 officer, is adopted by the governing body of the department, and 
 is promptly submitted to the executive director. 

    Subd. 3.  Before a governing body may declare a position to 
 be that of a firefighter, the duties of the person so employed 
 must, as a minimum, include services as an employee of a 
 designated fire company or person in charge of a designated fire 
 company or companies who is engaged in the hazards of fire 
 fighting.  A firefighter who is periodically assigned to 
 employment duties outside the scope of firefighting may 
 contribute to the public employees police and fire fund for all 
 service, if a resolution declaring that the primary position 
 held by the person is that of a firefighter, is adopted by the 
 governing body of the company or companies, and is promptly 
 submitted to the executive director. 

    Subd. 4.  A copy of the resolution of the governing body 
 declaring a position to be that of police officer or firefighter 
 shall be filed with the board of trustees and shall be 
 irrevocable. 

    Subd. 5.  Repealed, 1977 c 429 s 65 

    Subd. 5a.  A member of the police and fire fund continues 
 to be a member of that fund if transferred to a different 
 position with associated police or fire department functions in 
 the same department or a related department in the same 
 governmental subdivision provided the governing body sends a 
 copy of a resolution to that effect to the association.  A 
 police and fire fund member who is elected or assumes an 
 appointive position, including but not limited to, the positions 
 of city council member, city manager, and finance director is 
 not eligible to retain membership in the public employees police 
 and fire fund. 

    Subd. 6. Repealed, 1987 c 284 art 5 s 18 

    Subd. 7.    Pension coverage for certain public safety 
 employees of the metropolitan airports commission.  Any person 
 first employed as either a full-time firefighter or a full-time 
 police officer by the metropolitan airports commission after 
 June 30, 1978, who is not eligible for coverage under the 
 agreement signed between the state and the secretary of the 
 federal department of health and human services making the 
 provisions of the federal Old Age, Survivors, and Disability 
 Insurance Act applicable to municipal employees because that 
 position is excluded from application pursuant to Title 42, 
 United States Code, Sections 418 (d) (5) (A) and 418 (d) (8) (D) 
 and section 355.07, shall not be a member of the Minneapolis 
 employees retirement fund but shall be a member of the public 
 employees police and fire fund and shall be deemed to be a 
 firefighter or a police officer within the meaning of this 
 section.  The metropolitan airports commission shall make the 
 employer contribution required pursuant to section 353.65, 
 subdivision 3, with respect to each of its firefighters or 
 police officers covered by the public employees police and fire 
 fund and shall meet the employers recording and reporting 
 requirements set forth in section 353.65, subdivision 4.  

    Subd. 7a.    Pension coverage for certain metropolitan 
 transit police officers.  A person who is employed as a 
 full-time police officer on or after the first day of the first 
 payroll period after July 1, 1993, by the metropolitan council 
 and who is not eligible for coverage under the agreement with 
 the Secretary of the federal Department of Health and Human 
 Services making the provisions of the federal Old Age, 
 Survivors, and Disability Insurance Act because the person's 
 position is excluded from application under United States Code, 
 sections 418(d)(5)(A) and 418(d)(8)(D), and under section 
 355.07, is a member of the public employees police and fire fund 
 and is considered to be a police officer within the meaning of 
 this section.  The metropolitan council shall deduct the 
 employee contribution from the salary of each full-time police 
 officer as required by section 353.65, subdivision 2, shall make 
 the employer contribution for each full-time police officer as 
 required by section 353.65, subdivision 3, and shall meet the 
 employer recording and reporting requirements in section 353.65, 
 subdivision 4. 

    Subd. 8.    Pension coverage for certain state military 
 affairs department firefighters.  A person who is employed as 
 a full-time firefighter on or after the first day of the first 
 payroll period after June 10, 1987, by the department of 
 military affairs of the state of Minnesota and who is not 
 eligible for coverage under the agreement signed between the 
 state and the secretary of the federal Department of Health and 
 Human Services making the provisions of the federal Old Age, 
 Survivors, and Disability Insurance Act applicable to state 
 employees because the person's position is excluded from 
 application under United States Code, title 42, sections 
 418(d)(5)(A) and 418(d)(8)(D) and section 355.07, is a member of 
 the public employees police and fire fund and is considered to 
 be a firefighter within the meaning of this section.  The state 
 department of military affairs shall make the employee 
 contribution deduction from the salary of each full-time 
 military affairs department firefighter as required by section 
 353.65, subdivision 2, shall make the employer contribution with 
 respect to each firefighter as required by section 353.65, 
 subdivision 3, and shall meet the employer recording and 
 reporting requirements in section 353.65, subdivision 4. 

    Subd. 9.    Pension coverage for certain sheriffs' 
 association employees.  A former member of the association who 
 is an employee of the Minnesota sheriffs' association may elect 
 to be a police and fire fund member with respect to service with 
 the sheriffs' association, if written election to be covered is 
 delivered to the board within 60 days after July 1, 1989, or 
 within 60 days after commencement of employment, whichever is 
 later.  

    Employee and employer contributions for past service are 
 the obligation of the employee, except that the Minnesota 
 sheriffs' association may pay the employer contributions.  The 
 employer shall, in any event, deduct necessary future 
 contributions from the employee's salary and remit all 
 contributions to the association as required by this chapter.  

    Persons who become association members under this section 
 shall not be eligible for election to the board of trustees.  

    Subd. 10.    Pension coverage for Hennepin county 
 paramedics and emergency medical technicians.  An employee of 
 Hennepin county who is: 

    (1) certified as a paramedic or emergency medical 
 technician by the state under section 144E.16, subdivision 4; 

    (2) employed full time as a paramedic or emergency medical 
 technician by Hennepin county on or after the effective date 
 specified in Laws 1994, chapter 499, section 2; and 

    (3) not eligible after the effective date under Laws 1994, 
 chapter 499, section 2, for coverage under the agreement signed 
 between the state and the secretary of the federal Department of 
 Health and Human Services making the provisions of the federal 
 Old Age, Survivors, and Disability Insurance Act applicable to 
 paramedics and emergency medical technicians because the 
 person's position is excluded after that date from application 
 under United States Code, title 42, sections 418(d)(5)(A) and 
 418(d)(8)(D), and section 355.07; 

 is a member of the public employees police and fire fund under 
 sections 353.63 to 353.68.  

    Hennepin county shall deduct the employee contribution from 
 the salary of each full-time Hennepin county paramedic and 
 emergency medical technician as required by section 353.65, 
 subdivision 2, shall make the employer contribution for each 
 full-time Hennepin county paramedic and emergency medical 
 technician as required by section 353.65, subdivision 3, and 
 shall meet the employer recording and reporting requirements in 
 section 353.65, subdivision 4. 

    HIST: 1959 c 650 s 32; 1961 c 743 s 1; 1963 c 641 s 34; 1978 c 
 720 s 7; 1979 c 216 s 17; 1979 c 262 s 2; 1981 c 180 s 14,15; 
 1981 c 224 s 95; 1981 c 298 s 11; 1982 c 404 s 8; 1987 c 284 art 
 5 s 12,13; 1987 c 296 s 5; 1987 c 372 art 1 s 6; 1989 c 319 art 
 3 s 19-21; art 11 s 1; 1991 c 341 s 22; 1992 c 432 art 2 s 17; 
 1993 c 307 art 4 s 31-33; 1994 c 499 s 1; 1994 c 628 art 3 s 31; 
 1997 c 7 art 1 s 129; 1997 c 199 s 14 

     353.65 Contributions. 

    Subdivision 1.  The public employees police and fire fund 
 is established for police officers and firefighters who meet the 
 eligibility criteria under section 353.64.  Employee 
 contributions, employer contributions, other than the excess 
 contribution established by section 69.031, subdivision 5, 
 paragraphs (2), clauses (b) and (c), and (3), and other amounts 
 authorized by law, including all employee and employer 
 contributions of members transferred must be deposited in the 
 public employees police and fire fund.  

    Subd. 2.  The employee contribution is an amount equal to 
 7.6 percent of the total salary of the member.  This 
 contribution must be made by deduction from salary in the manner 
 provided in subdivision 4.  Where any portion of a member's 
 salary is paid from other than public funds, the member's 
 employee contribution is based on the total salary received from 
 all sources.  

    Subd. 3.  The employer contribution shall be an amount 
 equal to 11.4 percent of the total salary of every member.  This 
 contribution shall be made from funds available to the employing 
 subdivision by the means and in the manner provided in section 
 353.28. 

    Subd. 3a.    Change in employee and employer contributions 
 in certain instances.  (a) If, after four consecutive fiscal 
 years beginning July 1, 1994, the regular actuarial valuation of 
 the public employees police and fire fund under section 356.215 
 indicates that the fund has no unfunded actuarial accrued 
 liability and that there is a sufficiency in excess of 0.5 
 percent of covered payroll when the total actuarial funding 
 requirements of the fund are compared to the total support, the 
 employee and employer contribution rates must be decreased as 
 determined under paragraph (c) to a level such that the 
 sufficiency equals 0.5 percent of covered payroll based on the 
 most recent actuarial valuation. 

    (b) If, after four consecutive fiscal years beginning July 
 1, 1994, the regular actuarial valuation of the public employees 
 police and fire fund under section 356.215 indicates that the 
 fund has an unfunded actuarial accrued liability and that there 
 is a deficiency in excess of 0.5 percent of covered payroll when 
 the total actuarial funding requirements of the fund are 
 compared to the total support, the employee and employer 
 contribution rates must be increased as determined under 
 paragraph (c) so that no deficiency exists based on the most 
 recent actuarial valuation. 

    (c) The increase or decrease in employee and employer 
 contribution rates required under paragraphs (a) and (b) must 
 maintain the current ratio in employer and employee contribution 
 rates of 40 percent employee contribution and 60 percent 
 employer contribution. 

    (d) The contribution rate increase or decrease must be 
 determined by the executive director of the public employees 
 retirement association. 

    (e) The contribution rate increase or decrease is effective 
 on the first full payroll period beginning after June 30 
 following receipt by the association of the fourth consecutive 
 annual actuarial valuation disclosing the deficiency or 
 sufficiency specified in paragraph (a) or (b). 

    (f) A contribution rate increase or decrease under 
 paragraph (a) or (b) must not occur prior to receipt by the 
 association of the 1997 regular actuarial valuation of the 
 police and fire fund under section 356.215.  A contribution rate 
 increase or decrease under paragraph (a) or (b) must not occur 
 within four years of a prior increase or decrease under 
 paragraph (a) or (b).  

    Subd. 4.  The head of each department of the various 
 governmental subdivisions is hereby directed to cause employee 
 contributions to be deducted in the manner and subject to the 
 terms provided in section 353.27, subdivision 4.  

    Subd. 5.  Repealed, 1973 c 753 s 85 

    Subd. 6.  All contributions other than the excess 
 contribution established by section 69.031, subdivision 5, 
 paragraphs (2), clauses (b) and (c), and (3) shall be credited 
 to the fund and all interest and other income of the fund shall 
 be credited to said fund.  The retirement fund shall be 
 disbursed only for the purposes herein provided.  The expenses 
 of said fund and the annuities herein provided upon retirement 
 shall be paid from said fund.  

    Subd. 7. Repealed, 1996 c 390 s 41 

    HIST: 1959 c 650 s 33; 1965 c 714 s 6-8; Ex1967 c 53 s 6-8; 
 1971 c 297 s 5; 1973 c 753 s 69,70; 1979 c 216 s 18; 1987 c 296 
 s 6; 1988 c 709 art 5 s 22; 1989 c 319 art 6 s 3-5; 1992 c 432 
 art 2 s 18; 1993 c 352 s 1-3; 1994 c 528 art 2 s 12; 1994 c 632 
 art 3 s 56; 1995 c 262 art 4 s 1 

     353.651 Retirement annuity upon separation from public 
  service. 

    Subdivision 1.    Age and allowable service requirements. 
  Upon separation from public service, any police officer or 
 firefighter member who has attained the age of at least 55 years 
 and who received credit for not less than three years of 
 allowable service is entitled upon application to a retirement 
 annuity.  Such retirement annuity is known as the "normal" 
 retirement annuity. 

    Subd. 2.    Average salary.  In calculating the annuity 
 under subdivision 3, "average salary" means an amount equivalent 
 to the average of the highest salary earned as a police officer 
 or firefighter upon which employee contributions were paid for 
 any five successive years of allowable service.  Average salary 
 must be based upon all allowable service if this service is less 
 than five years. 

    The average salary may not include any reduced salary paid 
 during a period in which the employee is entitled to benefit 
 payments from workers' compensation for temporary disability 
 unless the average salary is higher, including this period. 

    Subd. 3.    Retirement annuity formula.  The average 
 salary as defined in subdivision 2, multiplied by the percent 
 specified in section 356.19, subdivision 6, per year of 
 allowable service determines the amount of the normal retirement 
 annuity.  If the member has earned allowable service for 
 performing services other than those of a police officer or 
 firefighter, the annuity representing such service is computed 
 under sections 353.29 and 353.30. 

    Subd. 4.    Early retirement.  Any police officer or 
 firefighter member who has become at least 50 years old and who 
 has at least three years of allowable service is entitled upon 
 application to a retirement annuity equal to the normal annuity 
 calculated under subdivision 3, reduced by two-tenths of one 
 percent for each month that the member is under age 55 at the 
 time of retirement. 

    HIST: 1973 c 753 s 71; 1974 c 229 s 19; 1977 c 429 s 34; 1984 
 c 564 s 28; 1987 c 372 art 9 s 18,19; 1989 c 319 art 13 s 43,44; 
 art 17 s 12,13; 1990 c 570 art 12 s 22; 1993 c 352 s 4; 1995 c 
 262 art 3 s 4; 1997 c 233 art 1 s 41 

  353.654 Repealed, 1973 c 753 s 85 

  353.655 Repealed, 1973 c 753 s 85 

     353.656 Disability benefits. 

    Subdivision 1.    In line of duty; computation of 
 benefits.  A member of the police and fire fund who becomes 
 disabled and physically unfit to perform duties as a police 
 officer or firefighter subsequent to June 30, 1973, as a direct 
 result of an injury, sickness, or other disability incurred in 
 or arising out of any act of duty, which has or is expected to 
 render the member physically or mentally unable to perform 
 duties as a police officer or firefighter for a period of at 
 least one year, shall receive disability benefits during the 
 period of such disability.  The benefits must be in an amount 
 equal to 60 percent of the "average salary" under subdivision 3, 
 plus an additional percent specified in section 356.19, 
 subdivision 6, of said average salary for each year of service 
 in excess of 20 years.  Should disability under this subdivision 
 occur before the member has at least five years of allowable 
 service credit in the police and fire fund, the disability 
 benefit must be computed on the "average salary" from which 
 deductions were made for contribution to the police and fire 
 fund. 

    Subd. 1a.    Optional annuity election.  A disabled 
 member of the police and fire fund may elect to receive the 
 normal disability benefit or an optional annuity as provided in 
 section 353.30, subdivision 3.  The election of an optional 
 annuity may be made prior to commencement of payment of the 
 disability benefit or as specified under subdivision 6a.  The 
 optional annuity shall begin to accrue on the same date as 
 provided for the disability benefit.  

    (1) If the person who is not the spouse of the member is 
 named as beneficiary of the joint and survivor optional annuity, 
 the person is eligible to receive the annuity only if the 
 spouse, on the disability application form prescribed by the 
 executive director, permanently waives the surviving spouse 
 benefits under section 353.657, subdivisions 2 and 2a.  If the 
 spouse of the member refuses to permanently waive the surviving 
 spouse coverage, the selection of a person other than the spouse 
 of the member as a joint annuitant is invalid. 

    (2) If the spouse of the member permanently waives survivor 
 coverage, the dependent child or children, if any, continue to 
 be eligible for survivor benefits, including the minimum benefit 
 under section 353.657, subdivision 3.  The designated optional 
 annuity beneficiary may draw the monthly benefit; however, the 
 amount payable to the dependent child or children and joint 
 annuitant must not exceed the 70 percent maximum family benefit 
 under section 353.657, subdivision 3.  If the maximum is 
 exceeded, the benefit of the joint annuitant must be reduced to 
 the amount necessary so that the total family benefit does not 
 exceed the 70 percent maximum family benefit amount. 

    (3) If the spouse is named as the beneficiary of the joint 
 and survivor optional annuity, the spouse may draw the monthly 
 benefit; however, the amount payable to the dependent child or 
 children and the joint annuitant must not exceed the 70 percent 
 maximum family benefit under section 353.657, subdivision 3.  If 
 the maximum is exceeded, each dependent child will receive ten 
 percent of the member's specified average monthly salary, and 
 the benefit to the joint annuitant must be reduced to the amount 
 necessary so that the total family benefit does not exceed the 
 70 percent maximum family benefit amount.  The joint and 
 survivor optional annuity must be restored to the surviving 
 spouse, plus applicable postretirement adjustments under section 
 356.41, as the dependent child or children become no longer 
 dependent under section 353.01, subdivision 15. 

    Subd. 2.    Benefits paid under workers' compensation law. 
  If a member, as described in subdivision 1, is injured under 
 circumstances which entitle the member to receive benefits under 
 the workers' compensation law, the member shall receive the same 
 benefits as provided in subdivision 1, with disability benefits 
 paid reimbursed and future benefits reduced by all periodic or 
 lump sum amounts paid to the member under the workers' 
 compensation law, after deduction of amount of attorney fees, 
 authorized under applicable workers' compensation laws, paid by 
 a disabilitant if the total of the single life annuity actuarial 
 equivalent disability benefit and the workers' compensation 
 benefit exceeds:  (1) the salary the disabled member received as 
 of the date of the disability or (2) the salary currently 
 payable for the same employment position or an employment 
 position substantially similar to the one the person held as of 
 the date of the disability, whichever is greater.  The 
 disability benefit must be reduced to that amount which, when 
 added to the workers' compensation benefits, does not exceed the 
 greater of the salaries described in clauses (1) and (2). 

    Subd. 2a.  A disabled member who is eligible to receive a 
 disability benefit under subdivision 2 as of June 30, 1987, and 
 whose disability benefit amount had been reduced prior to July 
 1, 1987, as a result of the receipt of workers' compensation 
 benefits, must have the disability benefit payment amount 
 restored, as of July 1, 1987, calculated in accordance with 
 subdivision 2.  However, a disabled member is not entitled to 
 receive retroactive repayment of any disability benefit amounts 
 lost before July 1, 1987, as a result of the reduction required 
 before that date because of the receipt of workers' compensation 
 benefits. 

    Any disability benefit overpayments made before July 1, 
 1987, and occurring because of the failure to reduce the 
 disability benefit payment to the extent required because of the 
 receipt of workers' compensation benefits, may be collected by 
 the association through the reduction of disability benefit or 
 annuity payment made on or after July 1, 1987, until the 
 overpayment is fully recovered. 

    Subd. 3.    Nonduty disability benefit.  Any member who 
 becomes disabled after not less than one year of allowable 
 service because of sickness or injury occurring while not on 
 duty as a police officer or firefighter, and by reason of that 
 sickness or injury the member has been or is expected to be 
 unable to perform duties as a police officer or firefighter for 
 a period of at least one year, is entitled to receive a 
 disability benefit.  The benefit must be paid in the same manner 
 as if the benefit were paid under section 353.651.  If a 
 disability under this subdivision occurs after one but in less 
 than 15 years of allowable service, the disability benefit must 
 be the same as though the member had at least 15 years service.  
 For a member who is employed as a full-time firefighter by the 
 department of military affairs of the state of Minnesota, 
 allowable service as a full-time state military affairs 
 department firefighter credited by the Minnesota state 
 retirement system may be used in meeting the minimum allowable 
 service requirement of this subdivision. 

    Subd. 4.    Limitation on disability benefit payments.  
 (a) No member is entitled to receive a disability benefit 
 payment when there remains to the member's credit unused annual 
 leave or sick leave or under any other circumstances when, 
 during the period of disability, there has been no impairment of 
 the person's salary as a police officer or a firefighter, 
 whichever applies.  

    (b) If a disabled member resumes a gainful occupation with 
 earnings less than the disabilitant reemployment earnings limit, 
 the amount of the disability benefit must be reduced as provided 
 in this paragraph.  The disabilitant reemployment earnings limit 
 is the greater of: 

    (1) the salary earned at the date of disability; or 

    (2) 125 percent of the salary currently paid by the 
 employing governmental subdivision for similar positions.  

    The disability benefit must be reduced by one dollar for 
 each three dollars by which the total amount of the current 
 disability benefit, any workers' compensation benefits, and 
 actual earnings exceed the greater disabilitant reemployment 
 earnings limit.  In no event may the disability benefit as 
 adjusted under this subdivision exceed the disability benefit 
 originally allowed.  

    Subd. 5.    Proof of disability.  A disability benefit 
 payment must not be made except upon adequate proof furnished to 
 the association of the existence of such disability, and during 
 the time when disability benefits are being paid, the 
 association has the right, at reasonable times, to require the 
 disabled member to submit proof of the continuance of the 
 disability claimed.  A person applying for or receiving a 
 disability benefit shall provide or authorize release of medical 
 evidence, including all medical records and information from any 
 source, relating to an application for disability benefits. 

    Subd. 5a.    Cessation of disability benefit.  The 
 association shall cease the payment of an in-line-of-duty or 
 nonduty disability benefit the first of the month following the 
 reinstatement of a member to full time or less than full-time 
 service in a position covered by the police and fire fund. 

    Subd. 6. Repealed, 1993 c 307 art 4 s 54 

    Subd. 6a.    Disability survivor benefits.  If a member 
 who is receiving a disability benefit under subdivision 1 or 3: 

    (a) dies before attaining age 65 or within five years of 
 the effective date of the disability, whichever is later, the 
 surviving spouse shall receive a survivor benefit under section 
 353.657, subdivision 2 or 2a, unless the surviving spouse 
 elected to receive a refund under section 353.32, subdivision 
 1.  The joint and survivor optional annuity under subdivision 2a 
 is based on the minimum disability benefit under subdivision 1 
 or 3, or the deceased member's allowable service, whichever is 
 greater. 

    (b) is living at age 65 or five years after the effective 
 date of the disability, whichever is later, the member may 
 continue to receive a normal disability benefit, or the member 
 may elect a joint and survivor optional annuity under section 
 353.30.  The optional annuity is based on the minimum disability 
 benefit under subdivision 1 or 3, or the member's allowable 
 service, whichever is greater.  The election of this joint and 
 survivor annuity must occur within 90 days of age 65 or the 
 five-year anniversary of the effective date of the disability 
 benefit, whichever is later.  The optional annuity takes effect 
 the first of the month following the month in which the person 
 attains age 65 or reaches the five-year anniversary of the 
 effective date of the disability benefit, whichever is later. 

    (c) if there is a dependent child or children under 
 paragraph (a) or (b), the association shall grant a dependent 
 child benefit under section 353.657, subdivision 3. 

    Subd. 7. Repealed, 1992 c 432 art 2 s 51 

    HIST: 1971 c 297 s 3; 1973 c 753 s 72-74; 1975 c 102 s 20,21; 
 1975 c 359 s 23; 1976 c 329 s 28; 1977 c 429 s 63; 1978 c 796 s 
 38; 1979 c 216 s 19; 1981 c 68 s 23,24; 1981 c 180 s 16; 1981 c 
 224 s 96; 1983 c 85 s 2; 1Sp1985 c 7 s 15; 1986 c 444; 1987 c 
 284 art 5 s 14,15; 1987 c 372 art 1 s 7; art 9 s 20,21; 1989 c 
 319 art 3 s 22; art 17 s 14,15; 1990 c 570 art 11 s 9,10; 1991 c 
 341 s 23; 1992 c 432 art 2 s 19; 1993 c 307 art 4 s 34-39; 1993 
 c 352 s 5; 1994 c 463 s 1; 1997 c 233 art 1 s 42 

     353.657 Survivor benefits. 

    Subdivision 1.  In the event a member of the police and 
 fire fund dies from any cause before retirement or after 
 becoming disabled and receiving disability benefits, the 
 association shall grant survivor benefits to a surviving spouse, 
 as defined in section 353.01, subdivision 20, and who was 
 married to the member for a period of at least one year, except 
 that if death occurs in the line of duty no time limit is 
 required.  The association shall also grant survivor benefits to 
 a dependent child or children, as defined in section 353.01, 
 subdivision 15. 

    Notwithstanding the definition of surviving spouse, a 
 former spouse of the member, if any, is entitled to a portion of 
 the monthly surviving spouse benefit if stipulated under the 
 terms of a marriage dissolution decree filed with the 
 association.  If there is no surviving spouse or child or 
 children, a former spouse may be entitled to a lump-sum refund 
 payment under section 353.32, subdivision 1, if provided for in 
 a marriage dissolution decree but not a monthly surviving spouse 
 benefit despite the terms of a marriage dissolution decree filed 
 with the association. 

    The spouse and child or children are entitled to monthly 
 benefits as provided in the following subdivisions. 

    Subd. 2.  The spouse, for life, shall receive a monthly 
 benefit equal to 50 percent of the member's average full-time 
 monthly salary rate as a police officer or firefighter in effect 
 over the last six months of allowable service preceding the 
 month in which death occurred.  If the member was a part-time 
 police officer or firefighter, the monthly survivor benefit is 
 based on the salary rate in effect for that member's part-time 
 service during the last six months of allowable service.  If the 
 member's status changed from full time to part time for health 
 reasons during the last year of employment, the monthly survivor 
 benefit is based on the full-time salary rate of a police 
 officer or firefighter in effect over the last six months of 
 allowable service preceding the month in which the death 
 occurred. 

    Subd. 2a.    Death while eligible survivor benefit.  If 
 a member or former member who has attained the age of at least 
 50 years and has credit for not less than three years allowable 
 service or who has credit for at least 30 years of allowable 
 service, regardless of age attained, dies before the annuity or 
 disability benefit becomes payable, notwithstanding any 
 designation of beneficiary to the contrary, the surviving spouse 
 may elect to receive a death while eligible survivor benefit.  

    Notwithstanding the definition of surviving spouse in 
 section 353.01, subdivision 20, a former spouse of the member, 
 if any, is entitled to a portion of the death while eligible 
 survivor benefit if stipulated under the terms of a marriage 
 dissolution decree filed with the association.  If there is no 
 surviving spouse or child or children, a former spouse may be 
 entitled to a lump-sum refund payment under section 353.32, 
 subdivision 1, if provided for in a marriage dissolution decree 
 but not a death while eligible survivor benefit despite the 
 terms of a marriage dissolution decree filed with the 
 association. 

    The benefit may be elected instead of a refund with 
 interest under section 353.32, subdivision 1, or surviving 
 spouse benefits otherwise payable under subdivisions 1 and 2.  
 The benefit must be an annuity equal to the 100 percent joint 
 and survivor annuity which the member could have qualified for 
 on the date of death, computed as provided in sections 353.651, 
 subdivisions 2 and 3, and 353.30, subdivision 3.  If there is a 
 dependent child or children, and the 100 percent joint and 
 survivor optional annuity for the surviving spouse, when added 
 to the benefit of the dependent child or children under 
 subdivision 3, exceeds an amount equal to 70 percent of the 
 member's specified average monthly salary, the 100 percent joint 
 and survivor annuity must be reduced by the amount necessary so 
 that the total family benefit does not exceed the 70 percent 
 maximum family benefit amount under subdivision 3.  The 100 
 percent joint and survivor optional annuity must be restored to 
 the surviving spouse, plus applicable postretirement fund 
 adjustments under section 356.41, as the dependent child or 
 children become no longer dependent under section 353.01, 
 subdivision 15.  The surviving spouse may apply for the annuity 
 at any time after the date on which the deceased employee would 
 have attained the required age for retirement based on the 
 employee's allowable service.  Sections 353.34, subdivision 3, 
 and 353.71, subdivision 2, apply to a deferred annuity payable 
 under this subdivision.  No payment shall accrue beyond the end 
 of the month in which entitlement to such annuity has 
 terminated.  An amount equal to the excess, if any, of the 
 accumulated contributions which were credited to the account of 
 the deceased employee over and above the total of the annuities 
 paid and payable to the surviving spouse must be paid to the 
 deceased member's last designated beneficiary or, if none, to 
 the legal representative of the estate of such deceased member.  
 Any member may request in writing that this subdivision not 
 apply and that payment be made only to the designated 
 beneficiary, as otherwise provided by this chapter.  For a 
 member who is employed as a full-time firefighter by the 
 department of military affairs of the state of Minnesota, 
 allowable service as a full-time state military affairs 
 department firefighter credited by the Minnesota state 
 retirement system may be used in meeting the minimum allowable 
 service requirement of this subdivision. 

    Subd. 3.  A dependent child, as defined in section 353.01, 
 subdivision 15, shall receive a monthly benefit equal to ten 
 percent of the member's average full-time monthly salary rate as 
 a police officer or firefighter in effect over the last six 
 months of allowable service preceding the month in which death 
 occurred.  Payments for the benefit of a dependent child must be 
 made to the surviving parent, or to the legal guardian of the 
 child or to any adult person with whom the child may at the time 
 be living, provided only that the parent or other person to whom 
 any amount is to be paid advises the board in writing that the 
 amount will be held or used in trust for the benefit of the 
 child.  The maximum monthly benefit for one family must not 
 exceed an amount equal to 70 percent of the member's specified 
 average monthly salary, and the minimum benefit per family, 
 including the joint and survivor optional annuity under 
 subdivision 2a, and section 353.656, subdivision 1a, must not be 
 less than 50 percent of the member's specified average monthly 
 salary. 

    Subd. 4.  If the member shall die under circumstances which 
 entitle a surviving spouse and dependent children to receive 
 benefits under the workers' compensation law, the amounts so 
 received by them shall not be deducted from the benefits payable 
 under this section. 

    HIST: 1971 c 297 s 4; 1973 c 753 s 75-77; 1974 c 229 s 20; 
 1975 c 102 s 22; 1975 c 359 s 23; 1978 c 471 s 7; 1978 c 796 s 
 39; 1980 c 607 art 15 s 3; 1981 c 180 s 17; 1982 c 404 s 9; 
 1Sp1985 c 7 s 16; 1986 c 444; 1986 c 458 s 13; 1987 c 284 art 5 
 s 16; 1987 c 372 art 1 s 8; art 9 s 22; 1989 c 319 art 13 s 45; 
 art 17 s 16,17; 1990 c 570 art 11 s 11; 1991 c 269 art 2 s 7; 
 1991 c 341 s 24; 1992 c 432 art 2 s 20-22 

     353.659 Local relief association consolidation account 
  benefits. 

    For any person who has prior service covered by a local 
 police or firefighters relief association which has consolidated 
 with the public employees retirement association and who has 
 elected the type of benefit coverage provided by the public 
 employees police and fire fund benefit plan under section 
 353A.08 following the consolidation, any retirement benefits 
 payable are governed by the applicable provisions of this 
 chapter.  For any person who has prior service covered by a 
 local police or firefighters relief association which has 
 consolidated with the public employees retirement association 
 and who has not elected the type of benefit coverage provided by 
 the public employees police and fire fund benefit plan under 
 section 353A.08 following the consolidation, any retirement 
 benefits payable are governed by the provisions of sections 
 353B.01 to 353B.13 which apply to the relief association. 

    HIST: 1987 c 296 s 7; 1992 c 432 art 2 s 23 

  353.66 Repealed, 1973 c 753 s 85 

  353.661 Repealed, 1989 c 319 art 3 s 26 

  353.662 Repealed, 1989 c 319 art 3 s 26 

     353.663 General administration. 

    The provisions of this chapter shall govern in all 
 instances where not inconsistent with the provisions of Laws 
 1978, chapter 774. 

    HIST: 1978 c 774 s 4 

     353.67 Application for annuity.  

    Application for retirement annuity may be made by a member 
 or by someone authorized to act in behalf of the member.  

    HIST: 1959 c 650 s 35; 1965 c 880 s 9; 1986 c 444 

     353.68 Scope and application. 

    Subdivision 1.  The general provisions of this chapter 
 apply to all police officers and firefighters who are members of 
 the police and fire fund and also to all governmental 
 subdivisions employing such members except where otherwise 
 specifically provided in sections 353.63 to 353.68.  

    Subd. 2.  Repealed, 1973 c 753 s 85 

    Subd. 3.  Repealed, 1973 c 753 s 85 

    Subd. 4.  The deferred annuity of section 353.34, 
 subdivision 3, as it applies to members of the police and fire 
 fund, begins and is computed in the manner provided in section 
 353.651 on the basis of the law in effect on the date of 
 termination of public service.  The deferred annuity is 
 augmented under section 353.71, subdivision 2.  

    Subd. 5.  Repealed, 1973 c 753 s 85 

    Subd. 6.  Repealed, 1973 c 753 s 85 

    Subd. 7.  Repealed, 1973 c 753 s 85 

    Subd. 8.  Repealed, 1973 c 753 s 85 

    Subd. 9.  Repealed, 1973 c 753 s 85 

    HIST: 1959 c 650 s 36; 1961 c 743 s 3; 1963 c 639 s 2; 1963 c 
 641 s 35-37; 1963 c 659 s 1; 1965 c 814 s 2; Ex1967 c 37 s 4; 
 1969 c 940 s 15; 1971 c 412 s 3; 1973 c 753 s 78; 1992 c 432 art 
 2 s 24 

     353.69 Officers or employees of noncovered 
  municipalities; optional membership.  

    Any former member who is an elected official or an employee 
 of a municipality not covered by the public employees retirement 
 association, has the option to continue membership in the 
 association for any period of service with the municipality.  
 Except for the repayment of refunds pursuant to section 353.35, 
 this option applies to future service only.  Any person desiring 
 to exercise this option shall file application with the 
 association.  No such person shall be entitled to allowable 
 service credit under this chapter, if for the same period of 
 service that person receives credit with any other public 
 retirement or pension plan maintained by the municipality.  

    HIST: 1959 c 650 s 56; 1965 c 714 s 10; Ex1967 c 53 s 10; 1971 
 c 106 s 39; 1973 c 753 s 79; 1986 c 444 

  353.70 Repealed, 1963 c 641 s 38 

     353.71 Coverage by more than one retirement system; 
  deferred annuity; augmentation. 

    Subdivision 1.    Eligibility.  Any person who has been 
 a member of the public employees retirement association, or the 
 Minnesota state retirement system, or the teachers retirement 
 association, or any other public retirement system in the state 
 of Minnesota having a like provision, except a fund providing 
 benefits for police officers or firefighters governed by 
 sections 69.77 or 69.771 to 69.776, shall be entitled when 
 qualified to an annuity from each fund if the total allowable 
 service in all funds or in any two of these funds totals three 
 or more years, provided no portion of the allowable service upon 
 which the retirement annuity from one fund is based is again 
 used in the computation for benefits from another fund and 
 provided further that the person has not taken a refund from any 
 one of these funds since the person's membership in that 
 association or system last terminated.  The annuity from each 
 fund shall be determined by the appropriate provisions of the 
 law except that the requirement that a person must have at least 
 three years of allowable service in the respective association 
 or system shall not apply for the purposes of this section 
 provided the combined service in two or more of these funds 
 equals three or more years. 

    Subd. 2.    Deferred annuity computation; augmentation.  
 (a) The deferred annuity, if any, accruing under subdivision 1, 
 or sections 353.34, subdivision 3, and 353.68, subdivision 4, 
 must be computed in the manner provided in said sections, on the 
 basis of allowable service prior to termination of public 
 service and augmented as provided herein.  The required reserves 
 applicable to a deferred annuity, or to an annuity for which a 
 former member was eligible but had not applied, or to any 
 deferred segment of an annuity shall be determined as of the 
 date the annuity begins to accrue and shall be augmented from 
 the first day of the month following the month in which the 
 former member ceased to be a public employee, or July 1, 1971, 
 whichever is later, to the first day of the month in which the 
 annuity begins to accrue, at the rate of five percent per annum 
 compounded annually until January 1, 1981, and at the rate of 
 three percent thereafter until January 1 of the year following 
 the year in which the former member attains age 55.  From that 
 date to the effective date of retirement, the rate is five 
 percent per annum compounded annually.  If a person has more 
 than one period of uninterrupted service, the required reserves 
 related to each period shall be augmented by interest pursuant 
 to this subdivision.  The sum of the augmented required reserves 
 so determined shall be the present value of the annuity.  
 Uninterrupted service for the purpose of this subdivision shall 
 mean periods of covered employment during which the employee has 
 not been separated from public service for more than two years.  
 If a person repays a refund, the service restored thereby shall 
 be considered as continuous with the next period of service for 
 which the employee has credit with this association. The formula 
 percentages used for each period of uninterrupted service shall 
 be those as would be applicable to a new employee.  This section 
 shall not reduce the annuity otherwise payable under this 
 chapter.  This subdivision shall apply to deferred annuitants of 
 record on July 1, 1971, and to employees who thereafter become 
 deferred annuitants; it shall also apply from July 1, 1971, to 
 former members who make application for an annuity after July 1, 
 1973. 

    (b) The retirement annuity or disability benefit of, or the 
 survivor benefit payable on behalf of, a former member who 
 terminated service before July 1, 1997, which is not first 
 payable until after June 30, 1997, must be increased on an 
 actuarial equivalent basis to reflect the change in the 
 postretirement interest rate actuarial assumption under section 
 356.215, subdivision 4d, from five percent to six percent under 
 a calculation procedure and tables adopted by the board and 
 approved by the actuary retained by the legislative commission 
 on pensions and retirement. 

    Subd. 3. Repealed, 1992 c 432 art 2 s 51 

    Subd. 4.    Repayment of refund.  Any person who has 
 received a refund from the public employees retirement fund and 
 who is a member of any public retirement system referred to in 
 subdivision 1, may repay such refund to the public employees 
 retirement fund as provided in section 353.35. 

    Subd. 5.    Early retirement.  The requirements and 
 provisions for retirement prior to normal retirement age 
 contained in section 353.30, shall also apply to a person 
 fulfilling such requirements with a combination of service as 
 provided in subdivision 1. 

    HIST: 1963 c 641 s 2; 1969 c 940 s 16-18; 1971 c 412 s 4-7; 
 1973 c 35 s 58; 1973 c 753 s 80,82,83; 1974 c 229 s 21; 1975 c 
 102 s 23; 1977 c 429 s 63; 1978 c 796 s 40; 1979 c 216 s 20; 
 1981 c 224 s 97; 1Sp1981 c 4 art 1 s 165; 1987 c 372 art 9 s 23; 
 1989 c 319 art 13 s 46-48; 1997 c 233 art 1 s 43 

     353.74 Certain survivor benefits.  

    The surviving spouse of a former member of the public 
 employees retirement association for not less than 18 years who 
 was separated from the association by becoming a member of the 
 judicial branch of the state government shall receive the same 
 benefits as if the former member was a member of the public 
 employees retirement association on the date of death.  This 
 section shall only apply when neither the former member nor a 
 survivor have received any refundment of the accumulated salary 
 deduction of the former member.  

    HIST: 1963 c 520 s 1; 1986 c 444 

     353.75 Certain retirement annuity benefits.  

    Any public employee who retired on or after December 31, 
 1964, and who (1) has attained the age of 65 years, and who (2) 
 had more than 22 years of continuous service in that employee's 
 first public employment, (3) had more than five years of 
 subsequent continuous service in public employment before 
 retirement, (4) and has made contributions to the public 
 employees retirement fund during all public employment, and who 
 (5) has not withdrawn any contributions to the public employees 
 retirement fund, is entitled to receive a retirement annuity 
 from May 14, 1965, based upon the sum total of such periods of 
 public employment in like manner as if the public employment had 
 been continuous.  

    HIST: 1965 c 432 s 1; 1986 c 444 

  353.76 Special 

  353.77 Special 

  353.78 Special 

  353.79 Special 

  353.80 Special 

  353.81 Special 

  353.82 Special 

     353.83 Additional payments to certain annuitants. 

    Payments of retirement annuities pursuant to this chapter, 
 to annuitants who (a) retired prior to July 1, 1962, (b) had at 
 least 20 years of allowable service credit in the public 
 employees retirement association upon their termination of 
 public employment, and (c) receive annuities of less than $200 
 per month must, retroactive to July 1, 1967, be supplemented by 
 additional payments of $15 per month from the public employees 
 retirement association, if the annuitants have not previously 
 qualified for the additional payments under this section, and 
 the annuities plus the additional payments do not exceed $200 
 per month.  These additional payments must be made in the same 
 manner and at the same time retirement annuities are paid and 
 must be included in the warrants on which the annuities are so 
 paid.  The additional payments are to be added to and considered 
 a portion of the annuity otherwise payable to the recipient and 
 must be included in the computation of any monthly survivor 
 benefit or optional annuity which may become due and payable to 
 any person following the death of an annuitant who, during life, 
 received a benefit under this section.  If an annuitant entitled 
 to receive additional payment under this section dies before 
 retroactive payment is received, payment must be made upon 
 demand to the designated beneficiary in an amount equal to the 
 accumulated benefit from July 1, 1967, to the date of death, 
 without interest. 

    HIST: 1967 c 688 s 1; 1969 c 399 s 1; 1969 c 998 s 1; 1980 c 
 614 s 141; 1986 c 444; 1990 c 570 art 11 s 12 

     353.84 Increase in benefits. 

    All survivors and disabilitants who were receiving benefits 
 on June 30, 1973, shall receive from the appropriate special 
 fund, a 25 percent increase in such benefits accruing from 
 January 1, 1974; provided, that survivors of members who died 
 prior to July 1, 1973 and will not become eligible to receive 
 benefits until after June 30, 1973, shall receive the 25 percent 
 increase in such benefits when the benefits begin to accrue.  
 Such increases shall not be affected by any maximum limitations 
 otherwise provided in this chapter.  

    Increases in payments pursuant to this section will be made 
 automatically unless the intended recipient files written notice 
 with the public employees retirement association requesting that 
 the increase shall not be made.  

    HIST: 1973 c 753 s 84; 1996 c 305 art 1 s 78 

     353.85 Optional benefits to survivors of members who 
  died after June 15, 1973.  

    A qualified survivor of a "basic" member or a member of the 
 police and fire fund where such member died after June 15, 1973 
 and was entitled to salary or vacation pay after June 30, 1973 
 shall in lieu of all other association survivor benefits be 
 entitled to the survivor benefits payable under the law in 
 effect on July 1, 1973.  

    HIST: 1974 c 229 s 22 

     353.86 Volunteer ambulance service personnel; 
  participation; election; limitation; and compensation. 

    Subdivision 1.    Participation.  Volunteer ambulance 
 service personnel, as defined in section 353.01, subdivision 35, 
 who are or become members of and participants in the public 
 employees retirement fund or the public employees police and 
 fire fund and make contributions to either of those funds based 
 on compensation for service other than volunteer ambulance 
 service may elect to participate in that same fund with respect 
 to compensation received for volunteer ambulance service, 
 provided that the volunteer ambulance service is not credited to 
 another public or private pension plan including the public 
 employees retirement plan established by chapter 353D and 
 provided further that the volunteer ambulance service is 
 rendered for the same governmental unit for which the 
 nonvolunteer ambulance service is rendered. 

    Subd. 2.    Election.  Volunteer ambulance service 
 personnel to whom subdivision 1 applies may exercise the 
 election authorized under subdivision 1 within the earlier of 
 the one-year period beginning on July 1, 1989, and extending 
 through June 30, 1990, or the one-year period commencing on the 
 first day of the first month following the start of employment 
 in a position covered by the public employees retirement fund or 
 the public employees police and fire fund.  The election must be 
 exercised by filing a written notice on a form prescribed by the 
 executive director of the association. 

    Subd. 3.    Limitation.  Volunteer ambulance service 
 personnel to whom subdivision 1 applies who exercise their 
 option in accordance with subdivision 2 and their governmental 
 employers are not required to pay omitted deductions and 
 contributions under section 353.27, subdivision 12, for 
 volunteer ambulance service rendered before July 1, 1989. 

    Subd. 4.    Compensation.  Notwithstanding section 
 353.01, subdivision 10, compensation received for service 
 rendered by volunteer ambulance service personnel to whom 
 subdivision 1 applies who exercise their option in accordance 
 with subdivision 2 shall be considered salary.  

    HIST: 1989 c 319 art 3 s 23 

     353.87 Volunteer firefighters; participation; 
  limitation; and refund. 

    Subdivision 1.    Participation.  Except as provided in 
 subdivision 2, a volunteer firefighter, as defined in section 
 353.01, subdivision 36, who, on June 30, 1989, was a member of, 
 and a participant in, the public employees retirement fund or 
 the public employees police and fire fund and was making 
 contributions to either of those funds based, at least in part, 
 on compensation for services performed as a volunteer 
 firefighter shall continue as a member of, and a participant in, 
 the public employees retirement fund or the public employees 
 police and fire fund and compensation for services performed as 
 a volunteer firefighter shall be considered salary. 

    Subd. 2.    Option.  A volunteer firefighter to whom 
 subdivision 1 applies has the option to terminate membership and 
 future participation in the public employees retirement fund or 
 the public employees police and fire fund upon filing of a 
 written notice of intention to terminate participation.  Notice 
 must be given on a form prescribed by the executive director of 
 the association and must be filed in the offices of the 
 association not later than June 30, 1990. 

    Subd. 3.    Limitation.  No volunteer firefighter to 
 whom subdivision 1 applies or the governmental employer of the 
 volunteer firefighter is required to make back contributions to 
 the public employees retirement association for volunteer 
 firefighter services rendered before July 1, 1989, 
 notwithstanding the provisions of section 353.27, subdivision 12.

    Subd. 4.    Refund.  Upon timely filing of a valid 
 notice of termination of participation in accordance with 
 subdivision 2, a volunteer firefighter to whom subdivision 1 
 applies must be given a refund of all past employee 
 contributions made on account of volunteer firefighter service 
 with five percent interest compounded annually. 

    Subd. 5. Repealed, 1990 c 570 art 11 s 13 

    HIST: 1989 c 319 art 3 s 24