2002 Minnesota Statutes

CHAPTER 356. Retirement systems, generally

     356.001 Purpose of public plans. 

    Subdivision 1.    Exclusive benefit of members and 
 beneficiaries.  (a) The public plans and funds specified in 
 subdivision 4 are established to provide for the retirement of 
 their members and to provide funds for the beneficiaries of 
 members in the event of death of a member.  

    (b) The public plans and funds are established and must be 
 maintained for the exclusive benefit of the members and the 
 beneficiaries of the members.  Except as provided in 
 subdivisions 2 and 3, no part of the moneys of the plans and 
 funds may revert to the plan or fund or be used for or diverted 
 to purposes other than the exclusive benefit of the members or 
 their beneficiaries.  

    Subd. 2.    Allowable expenses.  The necessary, 
 reasonable, and direct expenses of maintaining, protecting, and 
 administering the public plan or fund, as authorized in the laws 
 governing the plan or fund, must be considered as expenditures 
 for the exclusive benefit of the members or their beneficiaries. 

    Subd. 3.    Effect of amendments or termination.  (a) If 
 a public plan or fund defined in subdivision 4 is terminated or 
 the plan or fund provisions are amended, no part of the moneys 
 held in the plan or fund may be used for or diverted to any 
 purpose other than the exclusive benefit of the members or their 
 beneficiaries, except as provided in this subdivision.  

    (b) If a plan or fund is terminated, all affected members 
 have a nonforfeitable interest in their benefits that were 
 accrued and funded to date.  The value of the accrued benefits 
 to be credited to the account of each affected member must be 
 calculated as of the date of termination and the funding ratio 
 of the plan or fund must be applied to the accrued benefit of 
 each affected member.  

    (c) The board of trustees of the plan or fund shall, as 
 soon as administratively feasible following the termination, pay 
 each eligible member or beneficiary on behalf of a member the 
 amount in the member's account in a lump sum.  In the case of a 
 member whose whereabouts is unknown, the board shall notify the 
 member at the last known address by certified mail with return 
 receipt requested advising the member of the member's right to a 
 pending distribution.  If the member cannot be located in this 
 manner, the board shall establish a custodial account for the 
 member's benefit in a federally insured bank, savings 
 association, or credit union in which the member's account 
 balance must be deposited.  If the board receives proof of death 
 of a member that is satisfactory to the board, the account 
 balance must be paid to the beneficiary of the member.  

    Subd. 4.    Covered plans and funds.  This section 
 applies to all public pension and retirement plans and funds 
 established under the laws of the state of Minnesota that 
 receive contributions from moneys derived from taxation.  

    Subd. 5.    Construction.  Nothing contained in this 
 section may be construed to authorize, or otherwise imply, a 
 legislative policy or intent favoring the termination of any 
 plan or fund to which this section applies.  

    HIST: 1983 c 286 s 23; 1995 c 202 art 1 s 25; 2002 c 392 art 
 11 s 1 

  356.01-356.14 Obsolete 

  356.15 Renumbered 9.28 

  356.16 Obsolete 

  356.17 Renumbered 3.30 

  356.18 Repealed, 1994 c 528 art 3 s 34 

  356.19 Repealed, 2002 c 392 art 11 s 53 

     356.20 Public pension fund financial reporting 
  requirement. 

    Subdivision 1.    Report required.  (a) The governing or 
 managing board or administrative officials of the public pension 
 and retirement funds enumerated in subdivision 2 shall annually 
 prepare and file a financial report following the close of each 
 fiscal year.  

    (b) This requirement also applies to any plan or fund which 
 may be a successor to any organization so enumerated or to any 
 newly formed retirement plan, fund or association operating 
 under the control or supervision of any public employee group, 
 governmental unit, or institution receiving a portion of its 
 support through legislative appropriations.  

    (c) The report must be prepared under the supervision and 
 at the direction of the management of each fund and must be 
 signed by the presiding officer of the managing board of the 
 fund and the chief administrative official of the fund.  

    Subd. 2.    Covered public pension plans and funds.  
 This section applies to the following public pension plans: 

    (1) the general state employees retirement plan of the 
 Minnesota state retirement system; 

    (2) the general employees retirement plan of the public 
 employees retirement association; 

    (3) the teachers retirement association; 

    (4) the state patrol retirement plan; 

    (5) the Minneapolis teachers retirement fund association; 

    (6) the St. Paul teachers retirement fund association; 

    (7) the Duluth teachers retirement fund association; 

    (8) the Minneapolis employees retirement fund; 

    (9) the University of Minnesota faculty retirement plan; 

    (10) the University of Minnesota faculty supplemental 
 retirement plan; 

    (11) the judges retirement fund; 

    (12) a police or firefighter's relief association specified 
 or described in section 69.77, subdivision 1a, or 69.771, 
 subdivision 1; 

    (13) the public employees police and fire plan of the 
 public employees retirement association; 

    (14) the correctional state employees retirement plan of 
 the Minnesota state retirement system; and 

    (15) the local government correctional service retirement 
 plan of the public employees retirement association. 

    Subd. 3.    Filing requirement.  The financial report is 
 a public record.  A copy of the report or a synopsis of the 
 report containing the information required by this section must 
 be distributed annually to each member of the fund and to the 
 governing body of each governmental subdivision of the state 
 which makes employers contributions thereto or in whose behalf 
 taxes are levied for the employers' contribution.  A signed copy 
 of the report must be delivered to the executive director of the 
 legislative commission on pensions and retirement and to the 
 legislative reference library not later than six months after 
 the close of each fiscal year or one month following the 
 completion and delivery to the retirement fund of the actuarial 
 valuation report of the fund by the actuary retained by the 
 legislative commission on pensions and retirement, if 
 applicable, whichever is later.  

    Subd. 4.    Contents of financial report.  (a) The 
 financial report required by this section must contain financial 
 statements and disclosures that indicate the financial 
 operations and position of the retirement plan and fund.  The 
 report must conform with generally accepted governmental 
 accounting principles, applied on a consistent basis.  The 
 report must be audited.  The report must include, as part of its 
 exhibits or footnotes, an actuarial disclosure item based on the 
 actuarial valuation calculations prepared by the 
 commission-retained actuary or by the actuary retained by the 
 retirement fund or plan, if applicable, according to applicable 
 actuarial requirements enumerated in section 356.215, and 
 specified in the most recent standards for actuarial work 
 adopted by the legislative commission on pensions and 
 retirement.  The accrued assets, the accrued liabilities, 
 including accrued reserves, and the unfunded actuarial accrued 
 liability of the fund or plan must be disclosed.  The disclosure 
 item must contain a declaration by the actuary retained by the 
 legislative commission on pensions and retirement or the actuary 
 retained by the fund or plan, whichever applies, specifying that 
 the required reserves for any retirement, disability, or 
 survivor benefits provided under a benefit formula are computed 
 in accordance with the entry age actuarial cost method and with 
 the most recent applicable standards for actuarial work adopted 
 by the legislative commission on pensions and retirement. 

    (b) Assets of the fund or plan contained in the disclosure 
 item must include the following statement of the actuarial value 
 of current assets as defined in section 356.215, subdivision 1: 

                                     Value         Value 

                                    at cost       at market

  Cash, cash equivalents, and  

    short-term securities           .........     ......... 

  Accounts receivable               .........     .........

  Accrued investment income         .........     .........  

  Fixed income investments          .........     ......... 

  Equity investments other 

    than real estate                .........     ......... 

  Real estate investments           .........     ......... 

  Equipment                         .........     ......... 

  Equity in the Minnesota 

    postretirement investment

    fund                            .........     ......... 

  Other                             .........     .........  

   

  Total assets 

    Value at cost                                 .........

    Value at market                               ......... 

    Value of current assets                       ......... 

    (c) The unfunded actuarial accrued liability of the fund or 
 plan contained in the disclosure item must include the following 
 measures of unfunded actuarial accrued liability, using the 
 value of current assets:  

    (1) unfunded actuarial accrued liability, determined by 
 subtracting the current assets and the present value of future 
 normal costs from the total current and expected future benefit 
 obligations; and 

    (2) unfunded pension benefit obligation, determined by 
 subtracting the current assets from the actuarial present value 
 of credited projected benefits. 

    If the current assets of the fund or plan exceed the 
 actuarial accrued liabilities, the excess must be disclosed and 
 indicated as a surplus. 

    (d) The pension benefit obligations schedule included in 
 the disclosure must contain the following information on the 
 benefit obligations: 

    (1) the pension benefit obligation, determined as the 
 actuarial present value of credited projected benefits on 
 account of service rendered to date, separately identified as 
 follows: 

          (i) for annuitants;
                retirement annuities;
                disability benefits;
                surviving spouse and child benefits;
          (ii)  for former members without vested rights;
          (iii) for deferred annuitants' benefits, including 
                any augmentation;
          (iv)  for active employees;
                accumulated employee contributions,
                including allocated investment income;
                employer-financed benefits vested;
                employer-financed benefits nonvested;
                total pension benefit obligation; and

    (2) if there are additional benefits not appropriately 
 covered by the foregoing items of benefit obligations, a 
 separate identification of the obligation. 

    (e) Any additional statements or exhibits or more detailed 
 or subdivided itemization of a disclosure item that will enable 
 the management of the fund to portray a true interpretation of 
 the fund's financial condition must be included in the 
 additional statements or exhibits. 

    Subd. 4a.    Financial report for police or firefighters 
 relief association.  For any police or firefighter's relief 
 association referred to in subdivision 2, clause (12), a 
 financial report duly filed and meeting the requirements of 
 section 69.051 must be deemed to have met the requirements of 
 subdivision 4. 

    Subd. 5. Repealed, 1984 c 383 s 5 

    HIST: 1965 c 359 s 1; 1969 c 249 s 1; 1971 c 7 s 1-3; 1971 c 
 197 s 4; 1971 c 281 s 1,2; 1975 c 192 s 1,2; 1978 c 563 s 6-8; 
 1979 c 50 s 49; 1981 c 37 s 2; 1981 c 224 s 168; 1981 c 298 s 
 11; 1984 c 564 s 42; 1Sp1985 c 7 s 26; 1986 c 359 s 26; 1987 c 
 259 s 52-54; 1987 c 372 art 1 s 19; 1991 c 269 art 3 s 2; 1995 c 
 141 art 3 s 20; 1997 c 233 art 1 s 56; 1999 c 222 art 2 s 16; 
 2002 c 392 art 11 s 2-6 

  356.21 Repealed, 1975 c 192 s 7 

  356.211 Repealed, 1975 c 192 s 7 

  356.212 Repealed, 1975 c 192 s 7 

     356.215 Actuarial valuations and experience studies. 

    Subdivision 1.    Definitions.  (a) For the purposes of 
 sections 3.85 and 356.20 to 356.23, each of the terms in the 
 following paragraphs have the meaning given. 

    (b) "Actuarial valuation" means a set of calculations 
 prepared by the actuary retained by the legislative commission 
 on pensions and retirement if so required under section 3.85, or 
 otherwise, by an approved actuary, to determine the normal cost 
 and the accrued actuarial liabilities of a benefit plan, 
 according to the entry age actuarial cost method and based upon 
 stated assumptions including, but not limited to rates of 
 interest, mortality, salary increase, disability, withdrawal, 
 and retirement and to determine the payment necessary to 
 amortize over a stated period any unfunded accrued actuarial 
 liability disclosed as a result of the actuarial valuation of 
 the benefit plan. 

    (c) "Approved actuary" means a person who is regularly 
 engaged in the business of providing actuarial services and who 
 has at least 15 years of service to major public employee 
 pension or retirement funds or who is a fellow in the society of 
 actuaries.  

    (d) "Entry age actuarial cost method" means an actuarial 
 cost method under which the actuarial present value of the 
 projected benefits of each individual currently covered by the 
 benefit plan and included in the actuarial valuation is 
 allocated on a level basis over the service of the individual, 
 if the benefit plan is governed by section 69.773, or over the 
 earnings of the individual, if the benefit plan is governed by 
 any other law, between the entry age and the assumed exit age, 
 with the portion of the actuarial present value which is 
 allocated to the valuation year to be the normal cost and the 
 portion of the actuarial present value not provided for at the 
 valuation date by the actuarial present value of future normal 
 costs to be the actuarial accrued liability, with aggregation in 
 the calculation process to be the sum of the calculated result 
 for each covered individual and with recognition given to any 
 different benefit formulas which may apply to various periods of 
 service. 

    (e) "Experience study" means a report providing experience 
 data and an actuarial analysis of the adequacy of the actuarial 
 assumptions on which actuarial valuations are based. 

    (f) "Current assets" means: 

    (1) for the July 1, 2001, actuarial valuation, the market 
 value of all assets as of June 30, 2001, reduced by: 

    (i) 30 percent of the difference between the market value 
 of all assets as of June 30, 1999, and the actuarial value of 
 assets used in the July 1, 1999, actuarial valuation; 

    (ii) 60 percent of the difference between the actual net 
 change in the market value of assets between June 30, 1999, and 
 June 30, 2000, and the computed increase in the market value of 
 assets between June 30, 1999, and June 30, 2000, if the assets 
 had increased at the percentage preretirement interest rate 
 assumption used in the July 1, 1999, actuarial valuation; and 

    (iii) 80 percent of the difference between the actual net 
 change in the market value of assets between June 30, 2000, and 
 June 30, 2001, and the computed increase in the market value of 
 assets between June 30, 2000, and June 30, 2001, if the assets 
 had increased at the percentage preretirement interest rate 
 assumption used in the July 1, 2000, actuarial valuation; 

    (2) for the July 1, 2002, actuarial valuation, the market 
 value of all assets as of June 30, 2002, reduced by: 

    (i) ten percent of the difference between the market value 
 of all assets as of June 30, 1999, and the actuarial value of 
 assets used in the July 1, 1999, actuarial valuation; 

    (ii) 40 percent of the difference between the actual net 
 change in the market value of assets between June 30, 1999, and 
 June 30, 2000, and the computed increase in the market value of 
 assets between June 30, 1999, and June 30, 2000, if the assets 
 had increased at the percentage preretirement interest rate 
 assumption used in the July 1, 1999, actuarial valuation; 

    (iii) 60 percent of the difference between the actual net 
 change in the market value of assets between June 30, 2000, and 
 June 30, 2001, and the computed increase in the market value of 
 assets between June 30, 2000, and June 30, 2001, if the assets 
 had increased at the percentage preretirement interest rate 
 assumption used in the July 1, 2000, actuarial valuation; and 

    (iv) 80 percent of the difference between the actual net 
 change in the market value of assets between June 30, 2001, and 
 June 30, 2002, and the computed increase in the market value of 
 assets between June 30, 2001, and June 30, 2002, if the assets 
 had increased at the percentage preretirement interest rate 
 assumption used in the July 1, 2001, actuarial valuation; or 

    (3) for any actuarial valuation after July 1, 2002, the 
 market value of all assets as of the preceding June 30, reduced 
 by: 

    (i) 20 percent of the difference between the actual net 
 change in the market value of assets between the June 30 that 
 occurred three years earlier and the June 30 that occurred four 
 years earlier and the computed increase in the market value of 
 assets over that fiscal year period if the assets had increased 
 at the percentage preretirement interest rate assumption used in 
 the actuarial valuation for the July 1 that occurred four years 
 earlier; 

    (ii) 40 percent of the difference between the actual net 
 change in the market value of assets between the June 30 that 
 occurred two years earlier and the June 30 that occurred three 
 years earlier and the computed increase in the market value of 
 assets over that fiscal year period if the assets had increased 
 at the percentage preretirement interest rate assumption used in 
 the actuarial valuation for the July 1 that occurred three years 
 earlier; 

    (iii) 60 percent of the difference between the actual net 
 change in the market value of assets between the June 30 that 
 occurred one year earlier and the June 30 that occurred two 
 years earlier and the computed increase in the market value of 
 assets over that fiscal year period if the assets had increased 
 at the percentage preretirement interest rate assumption used in 
 the actuarial valuation for the July 1 that occurred two years 
 earlier; and 

    (iv) 80 percent of the difference between the actual net 
 change in the market value of assets between the immediately 
 prior June 30 and the June 30 that occurred one year earlier and 
 the computed increase in the market value of assets over that 
 fiscal year period if the assets had increased at the percentage 
 preretirement interest rate assumption used in the actuarial 
 valuation for the July 1 that occurred one year earlier. 

    (g) "Unfunded actuarial accrued liability" means the total 
 current and expected future benefit obligations, reduced by the 
 sum of current assets and the present value of future normal 
 costs. 

    (h) "Pension benefit obligation" means the actuarial 
 present value of credited projected benefits, determined as the 
 actuarial present value of benefits estimated to be payable in 
 the future as a result of employee service attributing an equal 
 benefit amount, including the effect of projected salary 
 increases and any step rate benefit accrual rate differences, to 
 each year of credited and expected future employee service. 

    Subd. 2.    Requirements.  (a) It is the policy of the 
 legislature that it is necessary and appropriate to determine 
 annually the financial status of tax supported retirement and 
 pension plans for public employees.  To achieve this goal:  

    (1) the legislative commission on pensions and retirement 
 shall have prepared by the actuary retained by the commission 
 annual actuarial valuations of the retirement plans enumerated 
 in section 3.85, subdivision 11, paragraph (b), and quadrennial 
 experience studies of the retirement plans enumerated in section 
 3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7); 
 and 

    (2) the commissioner of finance may have prepared by the 
 actuary retained by the commission, two years after each set of 
 quadrennial experience studies, quadrennial projection 
 valuations of at least one of the retirement plans enumerated in 
 section 3.85, subdivision 11, paragraph (b), for which the 
 commissioner determines that the analysis may be beneficial.  

    (b) The governing or managing board or administrative 
 officials of each public pension and retirement fund or plan 
 enumerated in section 356.20, subdivision 2, clauses (9), (10), 
 and (12), shall have prepared by an approved actuary annual 
 actuarial valuations of their respective funds as provided in 
 this section.  This requirement also applies to any fund or plan 
 that is the successor to any organization enumerated in section 
 356.20, subdivision 2, or to the governing or managing board or 
 administrative officials of any newly formed retirement fund, 
 plan, or association operating under the control or supervision 
 of any public employee group, governmental unit, or institution 
 receiving a portion of its support through legislative 
 appropriations, and any local police or fire fund to which 
 section 356.216 applies. 

    Subd. 2a.    Projection valuation requirements.  (a) A 
 quadrennial projection valuation authorized under subdivision 2 
 is intended to serve as an additional analytical tool with which 
 policy makers may assess the future funding status of public 
 plans through forecasting and testing various potential outcomes 
 over time if certain plan assumptions or valuation methods were 
 to be modified.  

    (b) In consultation with the retirement fund directors, the 
 state economist, the state demographer, the commissioner of 
 finance, and the commissioner of employee relations, the actuary 
 retained by the legislative commission on pensions and 
 retirement shall perform the quadrennial projection valuations 
 on behalf of the commissioner of finance, testing future 
 implications for plan funding by modifying assumptions and 
 methods currently in place.  The commission-retained actuary 
 shall provide advice to the commissioner as to the periods over 
 which such projections should be made, the nature and scope of 
 the scenarios to be analyzed, and the measures of funding status 
 to be employed, and shall report the results of these analyses 
 in the same manner as for quadrennial experience studies. 

    Subd. 3.    Reports.  (a) The actuarial valuations 
 required annually must be made as of the beginning of each 
 fiscal year.  

    (b) Two copies of the valuation must be delivered to the 
 executive director of the legislative commission on pensions and 
 retirement, to the commissioner of finance and to the 
 legislative reference library, not later than the first day of 
 the sixth month occurring after the end of the previous fiscal 
 year.  

    (c) Two copies of a quadrennial experience study must be 
 filed with the executive director of the legislative commission 
 on pensions and retirement, with the commissioner of finance, 
 and with the legislative reference library, not later than the 
 first day of the 11th month occurring after the end of the last 
 fiscal year of the four-year period which the experience study 
 covers.  

    (d) For actuarial valuations and experience studies 
 prepared at the direction of the legislative commission on 
 pensions and retirement, two copies of the document must be 
 delivered to the governing or managing board or administrative 
 officials of the applicable public pension and retirement fund 
 or plan. 

    Subd. 4.    Actuarial valuation; contents.  (a) The 
 actuarial valuation must be made in conformity with the 
 requirements of the definition contained in subdivision 1 and 
 the most recent standards for actuarial work adopted by the 
 legislative commission on pensions and retirement.  

    (b) The actuarial valuation must measure all aspects of the 
 benefit plan of the fund in accordance with changes in benefit 
 plans, if any, and salaries reasonably anticipated to be in 
 force during the ensuing fiscal year.  The actuarial valuation 
 must be prepared in accordance with the entry age actuarial cost 
 method.  The actuarial valuation required under this section 
 must include the information required in subdivisions 5 to 15. 

    Subd. 4a. Renumbered subd 5 

    Subd. 4b. Renumbered subd 6 

    Subd. 4c. Renumbered subd 7 

    Subd. 4d. Renumbered subd 8 

    Subd. 4e. Renumbered subd 9 

    Subd. 4f. Renumbered subd 10 

    Subd. 4g. Renumbered subd 11 

    Subd. 4h. Renumbered subd 12 

    Subd. 4i. Renumbered subd 13 

    Subd. 4j. Renumbered subd 14 

    Subd. 4k. Renumbered subd 15 

    Subd. 5.  MS 2000 Renumbered subd 16 

    Subd. 5.    Normal cost.  For a fund providing benefits 
 in whole or in part under a defined benefit plan, the actuarial 
 valuation must indicate the level normal cost of the benefits 
 provided under the laws governing the fund as of the date of the 
 valuation, calculated in accordance with the entry age actuarial 
 cost method.  The normal cost must be expressed as a level 
 percentage of the present value of future payrolls of the active 
 participants of the fund as of the date of the valuation. 

    Subd. 6.  MS 2000 Renumbered subd 17 

    Subd. 6.    Accrued liability.  For a fund providing 
 benefits under a defined benefit plan, the actuarial valuation 
 must contain an exhibit indicating the actuarial accrued 
 liabilities of the fund.  This figure is the present value of 
 future benefits reduced by the present value of future normal 
 costs, calculated in accordance with the entry age actuarial 
 cost method. 

    Subd. 7.  MS 2000 Renumbered subd 18 

    Subd. 7.    Defined contribution plan accumulations.  
 For each fund providing benefits under a money purchase or 
 defined contribution plan, the actuarial valuation must contain 
 an exhibit indicating the member contributions accumulated at 
 interest, as apportioned to members accounts, to the date of the 
 valuation.  These accumulations must be separately tabulated in 
 a manner which properly reflects any differences in money 
 purchase or defined contribution annuity rates which may apply. 

    Subd. 8.    Interest and salary assumptions.  (a) The 
 actuarial valuation must use the applicable following 
 preretirement interest assumption and the applicable following 
 postretirement interest assumption: 

                                    preretirement  postretirement 
                                    interest rate  interest rate 
             plan                      assumption     assumption 
      general state employees 
          retirement plan                  8.5%          6.0% 
      correctional state employees 
          retirement plan                  8.5           6.0 
      state patrol retirement plan         8.5           6.0 
      legislators retirement plan          8.5           6.0 
      elective state officers
          retirement plan                  8.5           6.0 
      judges retirement plan               8.5           6.0 
      general public employees 
          retirement plan                  8.5           6.0 
      public employees police and fire 
          retirement plan                  8.5           6.0 
      local government correctional 
          service retirement plan          8.5           6.0 
      teachers retirement plan             8.5           6.0 
      Minneapolis employees 
          retirement plan                  6.0           5.0 
      Duluth teachers retirement plan      8.5           8.5 
      Minneapolis teachers retirement
          plan                             8.5           8.5 
      St. Paul teachers retirement 
          plan                             8.5           8.5 
      Minneapolis police relief 
          association                      6.0           6.0 
      Fairmont police relief 
          association                      5.0           5.0 
      Minneapolis fire department 
          relief association               6.0           6.0 
      Virginia fire department
          relief association               5.0           5.0 
      local monthly benefit volunteer 
          firefighters relief associations 5.0           5.0 

    (b) The actuarial valuation must use the applicable 
 following single rate future salary increase assumption, the 
 applicable following modified single rate future salary increase 
 assumption, or the applicable following graded rate future 
 salary increase assumption: 

    (1) single rate future salary increase assumption 

                                             future salary 
             plan                          increase assumption 
      legislators retirement plan                  5.0% 
      elective state officers retirement 
          plan                                     5.0 
      judges retirement plan                       5.0 
      Minneapolis police relief association        4.0 
      Fairmont police relief 
          association                              3.5 
      Minneapolis fire department relief 
          association                              4.0 
      Virginia fire department
          relief association                       3.5 

    (2) modified single rate future salary increase assumption 

                                             future salary 
                plan                       increase assumption
          Minneapolis employees        the prior calendar year 
            retirement plan            amount increased first by 
                                       1.0198 percent to prior 
                                       fiscal year date and
                                       then increased by 4.0 
                                       percent annually for
                                       each future year

    (3) select and ultimate future salary increase assumption 
 or graded rate future salary increase assumption 

                                              future salary 
                plan                       increase assumption 
      general state employees             select calculation and
          retirement plan                      assumption A 
      correctional state employees 
          retirement plan                      assumption H 
      state patrol retirement plan             assumption H 
      general public employees            select calculation and
          retirement plan                      assumption B 
      public employees police and fire 
          fund retirement plan                 assumption C 
      local government correctional service 
          retirement plan                      assumption H 
      teachers retirement plan                 assumption D 
      Duluth teachers retirement plan          assumption E 
      Minneapolis teachers retirement plan     assumption F 
      St. Paul teachers retirement plan        assumption G 
      
      The select calculation is:
      during the ten-year select period, a designated percent
      is multiplied by the result of ten minus T, where T is 
      the number of completed years of service, and is added
      to the applicable future salary increase assumption.  The
      designated percent is 0.2 percent for the correctional state
      employees retirement plan, the state patrol retirement
      plan, the public employees police and fire plan, and the
      local government correctional service plan; 0.3 percent
      for the general state employees retirement plan, the
      general public employees retirement plan, the teachers
      retirement plan, the Duluth teachers retirement fund
      association, and the St. Paul teachers retirement fund
      association; and 0.4 percent for the Minneapolis teachers
      retirement fund association.
      
           The ultimate future salary increase assumption is:
      
      age  A     B      C     D     E     F     G      H 
      16  6.95% 6.95% 11.50% 8.20% 8.00% 6.50% 6.90% 7.7500
      17  6.90  6.90  11.50  8.15  8.00  6.50  6.90  7.7500
      18  6.85  6.85  11.50  8.10  8.00  6.50  6.90  7.7500
      19  6.80  6.80  11.50  8.05  8.00  6.50  6.90  7.7500
      20  6.75  6.40  11.50  6.00  6.90  6.50  6.90  7.7500
      21  6.75  6.40  11.50  6.00  6.90  6.50  6.90  7.1454
      22  6.75  6.40  11.00  6.00  6.90  6.50  6.90  7.0725
      23  6.75  6.40  10.50  6.00  6.85  6.50  6.85  7.0544
      24  6.75  6.40  10.00  6.00  6.80  6.50  6.80  7.0363
      25  6.75  6.40   9.50  6.00  6.75  6.50  6.75  7.0000 
      26  6.75  6.36   9.20  6.00  6.70  6.50  6.70  7.0000
      27  6.75  6.32   8.90  6.00  6.65  6.50  6.65  7.0000 
      28  6.75  6.28   8.60  6.00  6.60  6.50  6.60  7.0000
      29  6.75  6.24   8.30  6.00  6.55  6.50  6.55  7.0000
      30  6.75  6.20   8.00  6.00  6.50  6.50  6.50  7.0000
      31  6.75  6.16   7.80  6.00  6.45  6.50  6.45  7.0000
      32  6.75  6.12   7.60  6.00  6.40  6.50  6.40  7.0000
      33  6.75  6.08   7.40  6.00  6.35  6.50  6.35  7.0000
      34  6.75  6.04   7.20  6.00  6.30  6.50  6.30  7.0000
      35  6.75  6.00   7.00  6.00  6.25  6.50  6.25  7.0000
      36  6.75  5.96   6.80  6.00  6.20  6.50  6.20  6.9019
      37  6.75  5.92   6.60  6.00  6.15  6.50  6.15  6.8074
      38  6.75  5.88   6.40  5.90  6.10  6.50  6.10  6.7125
      39  6.75  5.84   6.20  5.80  6.05  6.50  6.05  6.6054
      40  6.75  5.80   6.00  5.70  6.00  6.50  6.00  6.5000
      41  6.75  5.76   5.90  5.60  5.90  6.50  5.95  6.3540
      42  6.75  5.72   5.80  5.50  5.80  6.50  5.90  6.2087
      43  6.65  5.68   5.70  5.40  5.70  6.50  5.85  6.0622
      44  6.55  5.64   5.60  5.30  5.60  6.50  5.80  5.9048
      45  6.45  5.60   5.50  5.20  5.50  6.50  5.75  5.7500
      46  6.35  5.56   5.45  5.10  5.40  6.40  5.70  5.6940
      47  6.25  5.52   5.40  5.00  5.30  6.30  5.65  5.6375
      48  6.15  5.48   5.35  5.00  5.20  6.20  5.60  5.5822
      49  6.05  5.44   5.30  5.00  5.10  6.10  5.55  5.5404
      50  5.95  5.40   5.25  5.00  5.00  6.00  5.50  5.5000
      51  5.85  5.36   5.25  5.00  5.00  5.90  5.45  5.4384
      52  5.75  5.32   5.25  5.00  5.00  5.80  5.40  5.3776
      53  5.65  5.28   5.25  5.00  5.00  5.70  5.35  5.3167
      54  5.55  5.24   5.25  5.00  5.00  5.60  5.30  5.2826
      55  5.45  5.20   5.25  5.00  5.00  5.50  5.25  5.2500 
      56  5.35  5.16   5.25  5.00  5.00  5.40  5.20  5.2500
      57  5.25  5.12   5.25  5.00  5.00  5.30  5.15  5.2500
      58  5.25  5.08   5.25  5.10  5.00  5.20  5.10  5.2500
      59  5.25  5.04   5.25  5.20  5.00  5.10  5.05  5.2500
      60  5.25  5.00   5.25  5.30  5.00  5.00  5.00  5.2500
      61  5.25  5.00   5.25  5.40  5.00  5.00  5.00  5.2500
      62  5.25  5.00   5.25  5.50  5.00  5.00  5.00  5.2500
      63  5.25  5.00   5.25  5.60  5.00  5.00  5.00  5.2500
      64  5.25  5.00   5.25  5.70  5.00  5.00  5.00  5.2500
      65  5.25  5.00   5.25  5.70  5.00  5.00  5.00  5.2500
      66  5.25  5.00   5.25  5.70  5.00  5.00  5.00  5.2500
      67  5.25  5.00   5.25  5.70  5.00  5.00  5.00  5.2500
      68  5.25  5.00   5.25  5.70  5.00  5.00  5.00  5.2500
      69  5.25  5.00   5.25  5.70  5.00  5.00  5.00  5.2500
      70  5.25  5.00   5.25  5.70  5.00  5.00  5.00  5.2500
      71  5.25  5.00         5.70

    (c) The actuarial valuation must use the applicable 
 following payroll growth assumption for calculating the 
 amortization requirement for the unfunded actuarial accrued 
 liability where the amortization retirement is calculated as a 
 level percentage of an increasing payroll: 

                                                  payroll growth
                   plan                             assumption 
      general state employees retirement plan          5.00% 
      correctional state employees retirement plan     5.00 
      state patrol retirement plan                     5.00 
      legislators retirement plan                      5.00 
      elective state officers retirement plan          5.00 
      judges retirement plan                           5.00 
      general public employees retirement plan         6.00 
      public employees police and fire 
          retirement plan                              6.00 
      local government correctional service 
          retirement plan                              6.00 
      teachers retirement plan                         5.00 
      Duluth teachers retirement plan                  5.00 
      Minneapolis teachers retirement plan             5.00 
      St. Paul teachers retirement plan                5.00 

    Subd. 9.    Other assumptions.  The actuarial valuation 
 must use assumptions concerning mortality, disability, 
 retirement, withdrawal, retirement age, and any other relevant 
 demographic or economic factor.  These assumptions must be set 
 at levels consistent with those determined in the most recent 
 quadrennial experience study completed under subdivision 16, if 
 required, or representative of the best estimate of future 
 experience, if a quadrennial experience study is not required.  
 The actuarial valuation must contain an exhibit indicating any 
 actuarial assumptions used in preparing the valuation report. 

    Subd. 10.    Public sector accounting disclosure 
 information.  The actuarial valuation must contain those 
 actuarial calculations that are necessary to allow the 
 retirement plan administration or participating employing units 
 to prepare the pension-related portions of annual financial 
 reporting that meet generally accepted accounting principles for 
 the public sector.  

    Subd. 11.    Amortization contributions.  (a) In 
 addition to the exhibit indicating the level normal cost, the 
 actuarial valuation must contain an exhibit indicating the 
 additional annual contribution sufficient to amortize the 
 unfunded actuarial accrued liability.  For funds governed by 
 chapters 3A, 352, 352B, 352C, 353, 354, 354A, and 490, the 
 additional contribution must be calculated on a level percentage 
 of covered payroll basis by the established date for full 
 funding in effect when the valuation is prepared.  For funds 
 governed by chapter 3A, sections 352.90 through 352.951, 
 chapters 352B, 352C, sections 353.63 through 353.68, and 
 chapters 353C, 354A, and 490, the level percent additional 
 contribution must be calculated assuming annual payroll growth 
 of 6.5 percent.  For funds governed by sections 352.01 through 
 352.86 and chapter 354, the level percent additional 
 contribution must be calculated assuming an annual payroll 
 growth of five percent.  For the fund governed by sections 
 353.01 through 353.46, the level percent additional contribution 
 must be calculated assuming an annual payroll growth of six 
 percent.  For all other funds, the additional annual 
 contribution must be calculated on a level annual dollar amount 
 basis. 

    (b) For any fund other than the Minneapolis employees 
 retirement fund and the public employees retirement association 
 general plan, if there has not been a change in the actuarial 
 assumptions used for calculating the actuarial accrued liability 
 of the fund, a change in the benefit plan governing annuities 
 and benefits payable from the fund, a change in the actuarial 
 cost method used in calculating the actuarial accrued liability 
 of all or a portion of the fund, or a combination of the three, 
 which change or changes by itself or by themselves without 
 inclusion of any other items of increase or decrease produce a 
 net increase in the unfunded actuarial accrued liability of the 
 fund, the established date for full funding is the first 
 actuarial valuation date occurring after June 1, 2020.  

    (c) For any fund or plan other than the Minneapolis 
 employees retirement fund and the public employees retirement 
 association general plan, if there has been a change in any or 
 all of the actuarial assumptions used for calculating the 
 actuarial accrued liability of the fund, a change in the benefit 
 plan governing annuities and benefits payable from the fund, a 
 change in the actuarial cost method used in calculating the 
 actuarial accrued liability of all or a portion of the fund, or 
 a combination of the three, and the change or changes, by itself 
 or by themselves and without inclusion of any other items of 
 increase or decrease, produce a net increase in the unfunded 
 actuarial accrued liability in the fund, the established date 
 for full funding must be determined using the following 
 procedure:  

    (i) the unfunded actuarial accrued liability of the fund 
 must be determined in accordance with the plan provisions 
 governing annuities and retirement benefits and the actuarial 
 assumptions in effect before an applicable change; 

    (ii) the level annual dollar contribution or level 
 percentage, whichever is applicable, needed to amortize the 
 unfunded actuarial accrued liability amount determined under 
 item (i) by the established date for full funding in effect 
 before the change must be calculated using the interest 
 assumption specified in subdivision 8 in effect before the 
 change; 

    (iii) the unfunded actuarial accrued liability of the fund 
 must be determined in accordance with any new plan provisions 
 governing annuities and benefits payable from the fund and any 
 new actuarial assumptions and the remaining plan provisions 
 governing annuities and benefits payable from the fund and 
 actuarial assumptions in effect before the change; 

    (iv) the level annual dollar contribution or level 
 percentage, whichever is applicable, needed to amortize the 
 difference between the unfunded actuarial accrued liability 
 amount calculated under item (i) and the unfunded actuarial 
 accrued liability amount calculated under item (iii) over a 
 period of 30 years from the end of the plan year in which the 
 applicable change is effective must be calculated using the 
 applicable interest assumption specified in subdivision 8 in 
 effect after any applicable change; 

    (v) the level annual dollar or level percentage 
 amortization contribution under item (iv) must be added to the 
 level annual dollar amortization contribution or level 
 percentage calculated under item (ii); 

    (vi) the period in which the unfunded actuarial accrued 
 liability amount determined in item (iii) is amortized by the 
 total level annual dollar or level percentage amortization 
 contribution computed under item (v) must be calculated using 
 the interest assumption specified in subdivision 8 in effect 
 after any applicable change, rounded to the nearest integral 
 number of years, but not to exceed 30 years from the end of the 
 plan year in which the determination of the established date for 
 full funding using the procedure set forth in this clause is 
 made and not to be less than the period of years beginning in 
 the plan year in which the determination of the established date 
 for full funding using the procedure set forth in this clause is 
 made and ending by the date for full funding in effect before 
 the change; and 

    (vii) the period determined under item (vi) must be added 
 to the date as of which the actuarial valuation was prepared and 
 the date obtained is the new established date for full funding.  

    (d) For the Minneapolis employees retirement fund, the 
 established date for full funding is June 30, 2020. 

    (e) For the general employees retirement plan of the public 
 employees retirement association, the established date for full 
 funding is June 30, 2031. 

    (f) For the retirement plans for which the annual actuarial 
 valuation indicates an excess of valuation assets over the 
 actuarial accrued liability, the valuation assets in excess of 
 the actuarial accrued liability must be recognized as a 
 reduction in the current contribution requirements by an amount 
 equal to the amortization of the excess expressed as a level 
 percentage of pay over a 30-year period beginning anew with each 
 annual actuarial valuation of the plan. 

    Subd. 12.    Actuarial gains and losses.  The actuarial 
 valuation must contain an exhibit consisting of an analysis by 
 the actuary explaining the net increase or decrease in the 
 unfunded actuarial accrued liability since the last valuation.  
 The explanation must subdivide the net increase or decrease in 
 the unfunded actuarial accrued liability into at least the 
 following parts: 

    (1) increases or decreases in the unfunded actuarial 
 accrued liability because of changes in benefits; 

    (2) increases and decreases in the unfunded actuarial 
 accrued liability because of changes in actuarial assumptions; 

    (3) increases or decreases in the unfunded actuarial 
 accrued liability attributable to actuarial gains or losses 
 resulting from any experience deviations from the assumptions on 
 which the valuation is based, as follows: 

    (i) actual investment earnings; 

    (ii) actual postretirement mortality rates; 

    (iii) actual salary increase rates; and 

    (iv) the remainder of the increase or decrease not 
 attributable to any separate source; 

    (4) increases or decreases in unfunded actuarial accrued 
 liability because of other reasons, including the effect of any 
 amortization contribution paid or additional amortization 
 contribution previously calculated but unpaid; and 

    (5) increases or decreases in unfunded actuarial accrued 
 liability because of changes in eligibility requirements or 
 groups included in the membership of the fund. 

    Subd. 13.    Membership tabulation.  (a) The actuarial 
 valuation must contain a tabulation of active membership and 
 annuitants in the fund.  If the membership of a fund is under 
 more than one general benefit program, a separate tabulation 
 must be made for each general benefit program.  

    (b) The tabulations must be prepared by the administration 
 of the pension fund and must contain the following information: 

 (1) Active members                               Number 
      As of last valuation date
                New entrants
            Total 
      Separations from active service
      Refund of contributions
      Separation with deferred annuity
      Separation with neither refund
           nor deferred annuity
      Disability
      Death
      Retirement with service annuity

      Total separations
      As of current valuation date                            
 (2) Annuitants                                   Number          
      As of last valuation date
      New entrants
      Total
      Terminations
      Deaths
      Other

      Total terminations
      As of current valuation date

    (c) The tabulation required under paragraph (b), clause 
 (2), must be made separately for each of the following classes 
 of benefit recipients: 

    (1) service retirement annuitants; 

    (2) disability benefit recipients; 

    (3) survivor benefit recipients; and 

    (4) deferred annuitants. 

    Subd. 14.    Administrative expenses.  (a) The actuarial 
 valuation must indicate the administrative expenses of the fund, 
 expressed both in dollars and as a percentage of covered payroll.

    (b) Administrative expenses are the costs incurred by the 
 retirement plans in the course of operating the plan, excluding 
 investment expenses.  Investment expenses include all expenses 
 incurred for the retention of professional external investment 
 managers and professional investment consultants, custodian bank 
 fees, investment transaction costs, and the costs incurred by 
 the retirement plans to manage investment portfolios or assets 
 internally.  Investment expenses must be deducted from the 
 investment return used in the actuarial valuation, and must not 
 be included in administrative expenses when calculating the 
 allowance for expenses. 

    Subd. 15.    Benefit plan summary.  The actuarial 
 valuation must contain a summary of the principal provisions of 
 the benefit plan upon which the valuation is based. 

    Subd. 16.    Quadrennial experience study; contents.  A 
 quadrennial experience study, if required, must contain an 
 analysis by the approved actuary of the experience of the fund 
 and a comparison of the experience with the actuarial 
 assumptions on which the most recent actuarial valuation of the 
 retirement fund was based. 

    Subd. 17.    Actuarial services by approved actuaries.  
 (a) The actuarial valuation or quadrennial experience study must 
 be made and any actuarial consulting services for a retirement 
 fund or plan must be provided by an approved actuary.  The 
 actuarial valuation or quadrennial experience study must include 
 a signed written declaration that it has been prepared according 
 to sections 356.20 to 356.23 and according to the most recent 
 standards for actuarial work adopted by the legislative 
 commission on pensions and retirement.  

    (b) Actuarial valuations or experience studies prepared by 
 an approved actuary retained by a retirement fund or plan must 
 be submitted to the legislative commission on pensions and 
 retirement within ten days of the submission of the document to 
 the retirement fund or plan. 

    Subd. 18.    Establishment of actuarial assumptions.  (a)
 The actuarial assumptions used for the preparation of actuarial 
 valuations under this section that are other than those set 
 forth in this section may be changed only with the approval of 
 the legislative commission on pensions and retirement.  

    (b) A change in the applicable actuarial assumptions may be 
 proposed by the governing board of the applicable pension fund 
 or relief association, by the actuary retained by the 
 legislative commission on pensions and retirement, by the 
 actuarial advisor to a pension fund governed by chapter 352, 
 353, 354, or 354A, or by the actuary retained by a local police 
 or firefighters relief association governed by sections 69.77 or 
 69.771 to 69.776, if one is retained. 

    HIST: 1975 c 192 s 3; 1978 c 563 s 9,10; 1979 c 184 s 1; 1981 
 c 224 s 169; 1984 c 564 s 43; 1Sp1985 c 7 s 27; 1986 c 359 s 26; 
 1986 c 458 s 20; 1987 c 259 s 55; 1989 c 319 art 13 s 90,91; 
 1991 c 199 art 2 s 24; 1991 c 269 art 3 s 3-19; 1991 c 345 art 4 
 s 3,4; 1993 c 336 art 4 s 1; 1993 c 352 s 7; 1995 c 141 art 3 s 
 14,15; 1997 c 233 art 1 s 57-59; 1997 c 241 art 4 s 1; 1998 c 
 390 art 8 s 2; 1999 c 222 art 4 s 14; 2000 c 461 art 1 s 3-6; 
 1Sp2001 c 10 art 11 s 18; 2002 c 392 art 9 s 1; art 11 s 7,53 

     356.216 Contents of actuarial valuations for local 
  police and fire funds. 

    (a) The provisions of section 356.215 that govern the 
 contents of actuarial valuations must apply to any local police 
 or fire pension fund or relief association required to make an 
 actuarial report under this section, except as follows: 

    (1) in calculating normal cost and other requirements, if 
 required to be expressed as a level percentage of covered 
 payroll, the salaries used in computing covered payroll must be 
 the maximum rate of salary on which retirement and survivorship 
 credits and amounts of benefits are determined and from which 
 any member contributions are calculated and deducted; 

    (2) in lieu of the amortization date specified in section 
 356.215, subdivision 11, the appropriate amortization target 
 date specified in section 69.77, subdivision 4, or 69.773, 
 subdivision 4, clause (c), must be used in calculating any 
 required amortization contribution; 

    (3) in addition to the tabulation of active members and 
 annuitants provided for in section 356.215, subdivision 13, the 
 member contributions for active members for the calendar year 
 and the prospective annual retirement annuities under the 
 benefit plan for active members must be reported; 

    (4) actuarial valuations required under section 69.773, 
 subdivision 2, must be made at least every four years and 
 actuarial valuations required under section 69.77 shall be made 
 annually; 

    (5) the actuarial balance sheet showing accrued assets 
 valued at market value if the actuarial valuation is required to 
 be prepared at least every four years or valued as current 
 assets under section 356.215, subdivision 1, clause (6), or 
 paragraph (b), whichever applies, if the actuarial valuation is 
 required to be prepared annually, actuarial accrued liabilities, 
 and the unfunded actuarial accrued liability must include the 
 following required reserves: 

          (i) For active members 
       1.  Retirement benefits 
       2.  Disability benefits 
       3.  Refund liability due to death or withdrawal 
       4.  Survivors' benefits 
          (ii) For deferred annuitants' benefits 
          (iii) For former members without vested rights 
          (iv) For annuitants 
       1.  Retirement annuities 
       2.  Disability annuities 
       3.  Surviving spouses' annuities 
       4.  Surviving children's annuities 

    In addition to those required reserves, separate items must 
 be shown for additional benefits, if any, which may not be 
 appropriately included in the reserves listed above; and 

    (6) actuarial valuations are due by the first day of the 
 seventh month after the end of the fiscal year which the 
 actuarial valuation covers. 

    (b) For the Minneapolis firefighters relief association or 
 the Minneapolis police relief association, the following 
 provisions additionally apply: 

    (1) in calculating the actuarial balance sheet, unfunded 
 actuarial accrued liability, and amortization contribution of 
 the relief association, "current assets" means the value of all 
 assets at cost, including realized capital gains and losses, 
 plus or minus, whichever applies, the average value of total 
 unrealized capital gains or losses for the most recent 
 three-year period ending with the end of the plan year 
 immediately preceding the actuarial valuation report 
 transmission date; and 

    (2) in calculating the applicable portions of the actuarial 
 valuation, an annual preretirement interest assumption of six 
 percent, an annual postretirement interest assumption of six 
 percent, and an annual salary increase assumption of four 
 percent must be used. 

    HIST: 1978 c 563 s 11; 1981 c 224 s 170; 1983 c 71 s 2; 
 1Sp1985 c 7 s 28; 1986 c 359 s 14; 1Sp1986 c 3 art 1 s 46; 1987 
 c 259 s 56; 1989 c 319 art 19 s 4; 1991 c 199 art 1 s 91; 2002 c 
 392 art 1 s 8; art 11 s 8 

     356.217 Modifications in actuarial services. 

    (a) The cost of any requested benefit projections prepared 
 by the commission-retained actuary relating to the Minnesota 
 postretirement investment fund at the request of the state board 
 of investment is payable by the state board of investment. 

    (b) Actuarial valuations under section 356.215, for July 1, 
 1991, and thereafter, are not required to have an individual 
 commentary section.  The commentary section, if omitted from the 
 individual plan actuarial valuations, must be included in an 
 appropriate generalized format as part of the report to the 
 legislature under section 3.85, subdivision 11. 

    (c) Actuarial valuations under section 356.215, for July 1, 
 1991, and thereafter, are not required to contain separate 
 actuarial valuation results for basic and coordinated programs 
 unless each program has a membership of at least ten percent of 
 the total membership of the fund.  Actuarial valuations under 
 section 356.215, for July 1, 1991, and thereafter, are not 
 required to contain cash flow forecasts. 

    (d) Actuarial valuations of the public employees police and 
 fire fund local consolidation accounts for July 1, 1991, and 
 thereafter, are not required to contain separate tabulations or 
 summaries of active member, service retirement, disability 
 retirement, and survivor data for each local consolidation 
 account. 

    (e) The commission-retained actuary is: 

    (1) required to publish experience findings for those 
 retirement plans for which experience findings are required only 
 on a quadrennial basis for the four-year period ending June 30, 
 1992, and every four years thereafter; 

    (2) not required to prepare a separate experience analysis 
 or publish separate experience findings for basic and 
 coordinated programs if separate actuarial valuation results for 
 the programs are not required; and 

    (3) not required to calculate investment rate of return 
 experience results on any basis other than current asset value 
 as defined in section 356.215, subdivision 1, paragraph (f). 

    HIST: 1991 c 269 art 3 s 20; 1997 c 233 art 1 s 60; 2002 c 392 
 art 11 s 9 

  356.218 Repealed, 1997 c 241 art 10 s 7 

     356.219 Disclosure of public pension plan investment 
  portfolio and performance information. 

    Subdivision 1.    Report required.  (a) Except as 
 indicated in subdivision 4, the state board of investment, on 
 behalf of the public pension funds and programs for which it is 
 the investment authority, and any Minnesota public pension plan 
 that is not fully invested through the state board of 
 investment, including a local police or firefighters' relief 
 association governed by sections 69.77 or 69.771 to 69.775, 
 shall report the information specified in subdivision 3 to the 
 state auditor.  The state auditor may prescribe a form or forms 
 for the purposes of the reporting requirements contained in this 
 section. 

    (b) A local police or firefighters' relief association 
 governed by section 69.77 or sections 69.771 to 69.775 is fully 
 invested during a given calendar year for purposes of this 
 section if all assets of the applicable pension plan beyond 
 sufficient cash equivalent investments to cover six months 
 expected expenses are invested under section 11A.17.  The board 
 of any fully invested public pension plan remains responsible 
 for submitting investment policy statements and subsequent 
 revisions as required by subdivision 3, paragraph (a). 

    (c) For purposes of this section, the state board of 
 investment is considered to be the investment authority for any 
 Minnesota public pension fund required to be invested by the 
 state board of investment under section 11A.23, or for any 
 Minnesota public pension fund authorized to invest in the 
 supplemental investment fund under section 11A.17 and which is 
 fully invested by the state board of investment. 

    Subd. 2.    Asset class definition.  (a) For purposes of 
 this section, "asset class" means any of the following asset 
 groupings as authorized in applicable law, bylaws, or articles 
 of incorporation: 

    (1) cash and any cash equivalent investments with 
 maturities of one year or less when issued; 

    (2) debt securities with maturities greater than one year 
 when issued, including but not limited to mortgage participation 
 certificates and pools, asset backed securities, guaranteed 
 investment contracts, and authorized government and corporate 
 obligations of corporations organized under laws of the United 
 States or any state, or the Dominion of Canada or its provinces; 

    (3) stocks or convertible issues of any corporation 
 organized under laws of the United States or any state, or the 
 Dominion of Canada or its provinces, or any corporation listed 
 on the New York Stock Exchange or the American Stock Exchange; 

    (4) international stocks or convertible issues; 

    (5) international debt securities; and 

    (6) real estate and venture capital. 

    (b) If the pension plan is investing under section 69.77, 
 subdivision 9, section 69.775, or any other applicable law, in 
 open-end investment companies registered under the federal 
 Investment Company Act of 1940, or in the Minnesota supplemental 
 investment fund under section 11A.17, this investment must be 
 included under an asset class indicated in paragraph (a), 
 clauses (1) through (6), as appropriate.  If the investment 
 vehicle includes underlying securities from more than one asset 
 class as indicated by paragraph (a), clauses (1) through (6), 
 the investment may be treated as a separate asset class. 

    Subd. 3.    Content of reports.  (a) The report required 
 by subdivision 1 must include a written statement of the 
 investment policy in effect on June 30, 1997, if that statement 
 has not been previously submitted.  Following that date, 
 subsequent reports must include investment policy changes and 
 the effective date of each policy change rather than a complete 
 statement of investment policy, unless the state auditor 
 requests submission of a complete current statement.  The report 
 must also include the information required by the following 
 paragraphs, as applicable. 

    (b) If a public pension plan has a total market value of 
 $10,000,000 or more as of the beginning of the calendar year, 
 the report required by subdivision 1 must include the market 
 value of the total portfolio and the market value of each 
 investment account, investment portfolio, or asset class 
 included in the pension fund as of the beginning of the calendar 
 year and for each month, and the amount and date of each 
 injection and withdrawal to the total portfolio and to each 
 investment account, investment portfolio, or asset class.  If a 
 public pension plan once files a report under this paragraph, it 
 must continue reporting under this paragraph for any subsequent 
 year in which the public pension plan is not fully invested as 
 specified in subdivision 1, paragraph (b), even if asset values 
 drop below $10,000,000 in market value in that subsequent year. 

    (c) For public pension plans to which paragraph (b) 
 applies, the report required by subdivision 1 must also include 
 a calculation of the total time-weighted rate of return 
 available from index-matching investments assuming the asset 
 class performance targets and target asset mix indicated in the 
 written statement of investment policy.  The provided 
 information must include a description of indices used in the 
 analyses and an explanation of why those indices are 
 appropriate.  This paragraph does not apply to any fully 
 invested plan, as defined by subdivision 1, paragraph (b).  
 Reporting by the state board of investment under this paragraph 
 is limited to information on the Minnesota public pension plans 
 required to be invested by the state board of investment under 
 section 11A.23. 

    (d) If a public pension plan has a total market value of 
 less than $10,000,000 as of the beginning of the calendar year 
 and was never required to file under paragraph (b), the report 
 required by subdivision 1 must include the amount and date of 
 each total portfolio injection and withdrawal.  In addition, the 
 report must include the market value of the total portfolio as 
 of the beginning of the calendar year and for each quarter. 

    (e) Any public pension plan reporting under paragraph (b) 
 or (d) may include computed time-weighted rates of return with 
 the report, in addition to all other required information, as 
 applicable.  If these returns are supplied, the individual who 
 computed the returns must certify that the returns are net of 
 all costs and fees, including investment management fees, and 
 that the procedures used to compute the returns are consistent 
 with bank administration institute studies of investment 
 performance measurement and association of investment management 
 and research presentation standards. 

    (f) For public pension plans reporting under paragraph (d), 
 the public pension plan must retain supporting information 
 specifying the date and amount of each injection and withdrawal 
 to each investment account and investment portfolio.  The public 
 pension plan must also retain the market value of each 
 investment account and investment portfolio at the beginning of 
 the calendar year and for each quarter.  Information that is 
 required to be collected and retained for any given year or 
 years under this paragraph must be submitted to the office of 
 the state auditor if the office of the state auditor requests in 
 writing that the information be submitted by a public pension 
 plan or plans, or be submitted by the state board of investment 
 for any plan or plans for which the state board of investment is 
 the investment authority under this section.  If the state 
 auditor requests information under this subdivision, and the 
 public plan fails to comply, the pension plan is subject to 
 penalties under subdivision 5, unless penalties are waived by 
 the state auditor under that subdivision. 

    Subd. 4.    Alternative reporting; certain plans.  In 
 lieu of requirements in subdivision 3, the applicable 
 administration for the individual retirement account plans under 
 chapters 354B and 354D and for the University of Minnesota 
 faculty retirement plan shall submit computed time-weighted 
 rates of return to the office of the state auditor.  These 
 time-weighted rates of return must cover the most recent 
 complete calendar year, and must be computed separately for each 
 investment option available to plan members.  To the extent 
 feasible, the returns must be computed net of all investment 
 costs, fees, and charges, so that the computed return reflects 
 the net time-weighted return available to the investor.  If this 
 is not practical, the existence of any remaining investment 
 cost, fee, or charge which could further lower the net return 
 must be disclosed.  The procedures used to compute the returns 
 must be consistent with bank administration institute studies of 
 investment performance measurement and association of investment 
 management and research presentation standards, or, if 
 applicable, securities exchange commission requirements.  The 
 individual who computes the returns must certify that the 
 supplied returns comply with this subdivision.  The applicable 
 plan administrator must also submit, with the return 
 information, the total amounts invested by the plan members, in 
 aggregate, in each investment option as of the last day of the 
 calendar year. 

    Subd. 5.    Penalty for noncompliance.  Failure to 
 comply with the reporting requirements of this section must 
 result in a withholding of all state aid or state appropriation 
 to which the pension plan may otherwise be directly or 
 indirectly entitled until the pension plan has complied with the 
 reporting requirements.  The state auditor shall instruct the 
 commissioners of revenue and finance to withhold any state aid 
 or state appropriation from any pension plan that fails to 
 comply with the reporting requirements contained in this 
 section, until the pension plan has complied with the reporting 
 requirements.  The state auditor may waive the withholding of 
 state aid or state appropriations if the state auditor 
 determines in writing that compliance would create an excessive 
 hardship for the pension plan. 

    Subd. 6.    Investment disclosure report.  (a) The state 
 auditor shall prepare an annual report to the legislature on the 
 investment performance of the various public pension plans 
 subject to this section.  The content of the report is specified 
 in paragraphs (b) to (e). 

    (b) For each public pension plan reporting under 
 subdivision 3, paragraph (b), the state auditor shall compute 
 and report total portfolio and asset class time-weighted rates 
 of return, net of all investment-related costs and fees. 

    (c) For each public pension plan reporting under 
 subdivision 3, paragraph (d), the state auditor shall compute 
 and report total portfolio time-weighted rates of return, net of 
 all costs and fees.  If the state auditor has requested data for 
 a plan under subdivision 3, paragraph (f), the state auditor may 
 also compute and report asset class time-weighted rates of 
 return, net of all costs and fees. 

    (d) The report by the state auditor must include the 
 information submitted by the pension plans under subdivision 3, 
 paragraph (c), or a synopsis of that information. 

    (e) The report by the state auditor may also include a 
 presentation of multiyear performance, information collected 
 under subdivision 4, and any other information or analysis 
 deemed appropriate by the state auditor.  

    Subd. 7.    Expense of report.  All administrative 
 expenses incurred relating to the investment report by the state 
 auditor described in subdivision 6 must be borne by the office 
 of the state auditor and may not be charged back to the entities 
 described in subdivisions 1 or 4. 

    Subd. 8.    Timing of reports.  (a) For salaried 
 firefighter relief associations, police relief associations, and 
 volunteer firefighter relief associations, the information 
 required under this section must be submitted by the due date 
 for reports required under section 69.051, subdivision 1 or 1a, 
 as applicable.  If a relief association satisfies the definition 
 of a fully invested plan under subdivision 1, paragraph (b), for 
 the calendar year covered by the report required under section 
 69.051, subdivision 1 or 1a, as applicable, the chief 
 administrative officer of the covered pension plan shall certify 
 that compliance on a form prescribed by the state auditor.  The 
 state auditor shall transmit annually to the state board of 
 investment a list or lists of covered pension plans which 
 submitted certifications in order to facilitate reporting by the 
 state board of investment under paragraph (c) of this 
 subdivision. 

    (b) For the Minneapolis teachers retirement fund 
 association, the St. Paul teachers retirement fund association, 
 the Duluth teachers retirement fund association, the Minneapolis 
 employees retirement fund, the University of Minnesota faculty 
 supplemental retirement plan, and the applicable administrators 
 for the University of Minnesota faculty retirement plan and the 
 individual retirement account plans under chapters 354B and 
 354D, the information required under this section must be 
 submitted to the state auditor by June 1 of each year. 

    (c) The state board of investment, on behalf of pension 
 funds specified in subdivision 1, paragraph (c), must report 
 information required under this section by September 1 of each 
 year. 

    HIST: 1994 c 565 art 2 s 1; 1995 c 262 art 9 s 1; 1996 c 438 
 art 10 s 1; 1997 c 241 art 10 s 4; 2002 c 392 art 1 s 8; art 11 
 s 10 

     356.22 Interpretation. 

    Subdivision 1.    Provision of additional valuations.  
 No provision in sections 356.20 to 356.23 may be construed in 
 any way to limit any of the enumerated pension and retirement 
 funds from furnishing additional actuarial valuations or 
 experience studies, or additional data and actuarial 
 calculations, as may be requested by the legislature or any 
 standing committee or by the legislative commission on pensions 
 and retirement. 

    Subd. 2.    Accelerated amortization.  No provision in 
 sections 356.20 to 356.23 may be construed to preclude any 
 public pension and retirement fund enumerated in section 356.20, 
 subdivision 2, from requesting, or the legislature from 
 providing for, the amortization of any unfunded actuarial 
 accrued liability in a shorter period of time than by the 
 established date for full funding as determined under section 
 356.215, subdivision 11.  

    Subd. 3.    Additional required valuations.  The 
 legislature or any committee or commission which has assigned to 
 it the subject of public pensions or public retirement plans may 
 require actuarial valuations and experience studies in 
 conformity with the provisions of sections 356.20 to 356.23 from 
 any public pension and retirement plan or fund, whether 
 enumerated in sections 356.20 to 356.23 or otherwise.  

    HIST: 1965 c 359 s 3; 1975 c 192 s 4,5; 1979 c 184 s 2; 1981 c 
 224 s 171; 1Sp1985 c 7 s 35; 1987 c 259 s 57; 2002 c 392 art 11 
 s 11 

     356.23 Supplemental valuations; alternative reports and 
  valuations. 

    Subdivision 1.    Supplemental actuarial valuations.  
 Any supplemental actuarial valuations prepared on behalf of any 
 governing or managing board of any pension and retirement fund 
 enumerated in section 356.20, subdivision 2, by an approved 
 actuary, must be prepared in accordance with the applicable 
 provisions of sections 356.20 to 356.23 and with the standards 
 adopted by the legislative commission on pensions and 
 retirement.  Any pension and retirement fund which prepares an 
 alternative actuarial valuation under subdivision 2 also must 
 have a supplemental actuarial valuation prepared.  

    Subd. 2.    Alternative reports and valuations.  In 
 addition to the financial reports and actuarial valuations 
 required by sections 356.20 to 356.23, the governing or managing 
 board of any fund concerned may submit alternative reports and 
 actuarial valuations for distribution to the legislature, any of 
 its committees, or the legislative commission on pensions and 
 retirement on a different basis or on different assumptions than 
 are specified in sections 356.20 to 356.23.  The assumptions and 
 basis of any alternative reports and valuations must be clearly 
 stated in the document.  

    HIST: 1965 c 359 s 4; 1971 c 7 s 7; 1975 c 192 s 6; 1984 c 655 
 art 1 s 59; 1987 c 259 s 58; 2002 c 392 art 11 s 12 

     356.24 Supplemental pension or deferred compensation 
  plans, restrictions upon government units. 

    Subdivision 1.    Restriction; exceptions.  It is 
 unlawful for a school district or other governmental subdivision 
 or state agency to levy taxes for, or to contribute public funds 
 to a supplemental pension or deferred compensation plan that is 
 established, maintained, and operated in addition to a primary 
 pension program for the benefit of the governmental subdivision 
 employees other than: 

    (1) to a supplemental pension plan that was established, 
 maintained, and operated before May 6, 1971; 

    (2) to a plan that provides solely for group health, 
 hospital, disability, or death benefits; 

    (3) to the individual retirement account plan established 
 by chapter 354B; 

    (4) to a plan that provides solely for severance pay under 
 section 465.72 to a retiring or terminating employee; 

    (5) for employees other than personnel employed by the 
 board of trustees of the Minnesota state colleges and 
 universities and covered under the higher education supplemental 
 retirement plan under chapter 354C, if the supplemental plan 
 coverage is provided for in a personnel policy of the public 
 employer or in the collective bargaining agreement between the 
 public employer and the exclusive representative of public 
 employees in an appropriate unit, in an amount matching employee 
 contributions on a dollar for dollar basis, but not to exceed an 
 employer contribution of $2,000 a year per employee; 

    (i) to the state of Minnesota deferred compensation plan 
 under section 352.96; or 

    (ii) in payment of the applicable portion of the 
 contribution made to any investment eligible under section 
 403(b) of the Internal Revenue Code, if the employing unit has 
 complied with any applicable pension plan provisions of the 
 Internal Revenue Code with respect to the tax-sheltered annuity 
 program during the preceding calendar year; 

    (6) for personnel employed by the board of trustees of the 
 Minnesota state colleges and universities and not covered by 
 clause (5), to the supplemental retirement plan under chapter 
 354C, if the supplemental plan coverage is provided for in a 
 personnel policy or in the collective bargaining agreement of 
 the public employer with the exclusive representative of the 
 covered employees in an appropriate unit, in an amount matching 
 employee contributions on a dollar for dollar basis, but not to 
 exceed an employer contribution of $2,700 a year for each 
 employee; 

    (7) to a supplemental plan or to a governmental trust to 
 save for postretirement health care expenses qualified for 
 tax-preferred treatment under the Internal Revenue Code, if the 
 supplemental plan coverage is provided for in a personnel policy 
 or in the collective bargaining agreement of a public employer 
 with the exclusive representative of the covered employees in an 
 appropriate unit; 

    (8) to the laborer's national industrial pension fund for 
 the employees of a governmental subdivision who are covered by a 
 collective bargaining agreement that provides for coverage by 
 that fund and that sets forth a fund contribution rate, but not 
 to exceed an employer contribution of $2,000 per year per 
 employee; 

    (9) to the plumbers' and pipefitters' national pension fund 
 for the employees of a governmental subdivision who are covered 
 by a collective bargaining agreement that provides for coverage 
 by that fund and that sets forth a fund contribution rate, but 
 not to exceed an employer contribution of $2,000 per year per 
 employee; 

    (10) to the international union of operating engineers 
 pension fund for the employees of a governmental subdivision who 
 are covered by a collective bargaining agreement that provides 
 for coverage by that fund and that sets forth a fund 
 contribution rate, but not to exceed an employer contribution of 
 $2,000 per year per employee; or 

    (11) to a supplemental plan organized and operated under 
 the federal Internal Revenue Code, as amended, that is wholly 
 and solely funded by the employee's accumulated sick leave, 
 accumulated vacation leave, and accumulated severance pay. 

    Subd. 1a. Repealed, 2000 c 461 art 13 s 4 

    Subd. 1b.    Vendor restrictions.  A personnel policy 
 for unrepresented employees, a collective bargaining agreement 
 for represented employees, or a school board for school district 
 employees may establish limits on the number of vendors of plans 
 covered by the exceptions set forth in subdivision 1 that it 
 will utilize and conditions under which those vendors may 
 contact employees both during working hours and after working 
 hours. 

    Subd. 1c.    State board of investment review.  (a) Any 
 insurance company, mutual fund company, or similar company 
 providing investments eligible under section 403(b) of the 
 Internal Revenue Code and eligible to receive employer 
 contributions under this section may request the state board of 
 investment, in conjunction with the department of commerce, to 
 review the financial standing of the company, the 
 competitiveness of its investment options and returns, and the 
 level of all charges and fees impacting those returns.  

    (b) The state board of investment may establish a fee for 
 each review.  The state board of investment must maintain and 
 have available a list of all reviewed companies.  

    (c) In reviewing companies under this section, the state 
 board of investment must not be considered to be acting as a 
 fiduciary or to be engaged in a fiduciary activity under chapter 
 356A or common law. 

    Subd. 2.    Limit on certain contributions or benefit 
 changes.  No change in benefits or employer contributions in a 
 supplemental pension plan to which this section applies that 
 occurs after May 6, 1971, is effective without prior legislative 
 authorization. 

    HIST: 1971 c 222 s 1; 1980 c 600 s 7; 1981 c 224 s 172; 1988 c 
 605 s 9; 1988 c 709 art 11 s 6; 1989 c 319 art 12 s 3; 1992 c 
 464 art 1 s 42; 1992 c 487 s 4; 1993 c 192 s 90; 1993 c 239 art 
 3 s 1; 1993 c 300 s 12; 1995 c 141 art 3 s 16; art 4 s 7; 1995 c 
 212 art 4 s 64; 1999 c 222 art 18 s 1; 2000 c 461 art 12 s 15; 
 art 13 s 1-3; 1Sp2001 c 1 art 2 s 24; 1Sp2001 c 10 art 7 s 2; 
 2002 c 392 art 10 s 1; art 11 s 13-16 

     356.245 Local elected officials. 

    An elected official who is covered by section 353.01, 
 subdivision 2a, is eligible to participate in the state of 
 Minnesota deferred compensation plan under section 356.24.  The 
 applicable local governmental unit may make the matching 
 employer contributions authorized by that section on the part of 
 a participating elected official. 

    HIST: 1988 c 709 art 9 s 3; 2002 c 392 art 11 s 17 

     356.25 Local governmental pension fund prohibitions; 
  exclusions. 

    Notwithstanding any other provision of law or charter to 
 the contrary, no city, county, public agency or instrumentality, 
 or other political subdivision is required or permitted to 
 establish for any of its employees a local pension plan or fund 
 financed in whole or in part from public funds, other than: 

    (1) a supplemental pension or deferred compensation plan 
 authorized under section 356.24; or 

    (2) a volunteer firefighter's relief association that is 
 established under chapter 424A and is governed by sections 
 69.771 to 69.776. 

    HIST: 1975 c 405 s 1; 1977 c 429 s 63; 1981 c 224 s 173; 1984 
 c 655 art 1 s 60; 2002 c 392 art 10 s 2; art 11 s 18 

  356.26 Repealed, 1976 c 129 s 1 

     356.30 Combined service annuity. 

    Subdivision 1.    Eligibility; computation of annuity.  
 (a) Notwithstanding any provisions of the laws governing the 
 retirement plans enumerated in subdivision 3, a person who has 
 met the qualifications of paragraph (b) may elect to receive a 
 retirement annuity from each enumerated retirement plan in which 
 the person has at least one-half year of allowable service, 
 based on the allowable service in each plan, subject to the 
 provisions of paragraph (c). 

    (b) A person may receive, upon retirement, a retirement 
 annuity from each enumerated retirement plan in which the person 
 has at least one-half year of allowable service, and 
 augmentation of a deferred annuity calculated under the laws 
 governing each public pension plan or fund named in subdivision 
 3, from the date the person terminated all public service if: 

    (1) the person has allowable service totaling an amount 
 that allows the person to receive an annuity in any two or more 
 of the enumerated plans; and 

    (2) the person has not begun to receive an annuity from any 
 enumerated plan or the person has made application for benefits 
 from each applicable plan and the effective dates of the 
 retirement annuity with each plan under which the person chooses 
 to receive an annuity are within a one-year period.  

    (c) The retirement annuity from each plan must be based 
 upon the allowable service, accrual rates, and average salary in 
 the applicable plan except as further specified or modified in 
 the following clauses:  

    (1) the laws governing annuities must be the law in effect 
 on the date of termination from the last period of public 
 service under a covered retirement plan with which the person 
 earned a minimum of one-half year of allowable service credit 
 during that employment; 

    (2) the "average salary" on which the annuity from each 
 covered plan in which the employee has credit in a formula plan 
 must be based on the employee's highest five successive years of 
 covered salary during the entire service in covered plans; 

    (3) the accrual rates to be used by each plan must be those 
 percentages prescribed by each plan's formula as continued for 
 the respective years of allowable service from one plan to the 
 next, recognizing all previous allowable service with the other 
 covered plans; 

    (4) the allowable service in all the plans must be combined 
 in determining eligibility for and the application of each 
 plan's provisions in respect to reduction in the annuity amount 
 for retirement prior to normal retirement age; and 

    (5) the annuity amount payable for any allowable service 
 under a nonformula plan of a covered plan must not be affected, 
 but such service and covered salary must be used in the above 
 calculation.  

    (d) This section does not apply to any person whose final 
 termination from the last public service under a covered plan 
 was before May 1, 1975.  

    (e) For the purpose of computing annuities under this 
 section, the accrual rates used by any covered plan, except the 
 public employees police and fire plan, the judges' retirement 
 fund, and the state patrol retirement plan, must not exceed the 
 percent specified in section 356.315, subdivision 4, per year of 
 service for any year of service or fraction thereof.  The 
 formula percentage used by the judges' retirement fund must not 
 exceed the percentage rate specified in section 356.315, 
 subdivision 8, per year of service for any year of service or 
 fraction thereof.  The accrual rate used by the public employees 
 police and fire plan and the state patrol retirement plan must 
 not exceed the percentage rate specified in section 356.315, 
 subdivision 6, per year of service for any year of service or 
 fraction thereof.  The accrual rate or rates used by the 
 legislators retirement plan and the elective state officers 
 retirement plan must not exceed 2.5 percent, but this limit does 
 not apply to the adjustment provided under section 3A.02, 
 subdivision 1, paragraph (c), or 352C.031, paragraph (b). 

    (f) Any period of time for which a person has credit in 
 more than one of the covered plans must be used only once for 
 the purpose of determining total allowable service.  

    (g) If the period of duplicated service credit is more than 
 one-half year, or the person has credit for more than one-half 
 year, with each of the plans, each plan must apply its formula 
 to a prorated service credit for the period of duplicated 
 service based on a fraction of the salary on which deductions 
 were paid to that fund for the period divided by the total 
 salary on which deductions were paid to all plans for the period.

    (h) If the period of duplicated service credit is less than 
 one-half year, or when added to other service credit with that 
 plan is less than one-half year, the service credit must be 
 ignored and a refund of contributions made to the person in 
 accord with that plan's refund provisions. 

    Subd. 2.    Repayment of refunds.  A person who has 
 service credit in one of the retirement plans enumerated in 
 subdivision 3 and who is employed or was formerly employed in a 
 position covered by one of these covered plans but also has 
 received a refund from any other of these covered plans, may 
 repay the refund to the respective plan under terms and 
 conditions that are consistent with the laws governing the other 
 plan, except that the person need not be a currently 
 contributing member of the plan to which the refund is repaid at 
 the time the repayment is made.  Unless otherwise provided by 
 statute, the repayment of a refund under this subdivision may 
 only be made within six months following termination of 
 employment from a position covered by one of the covered plans 
 enumerated in subdivision 3 or before the date of retirement 
 from the plan to which the refund is repaid, whichever is 
 earlier. 

    Subd. 2a.    Purchases of prior service.  If a purchase 
 of prior service is made under the provisions of Laws 1988, 
 chapter 709, article 3, or any similar special or general law 
 provision which allows a purchase of service credit in any of 
 the retirement plans enumerated in subdivision 3, the amount of 
 required reserves calculated as prescribed in Laws 1988, chapter 
 709, article 3, must be paid to each plan based on the amount of 
 benefit increase payable from that plan as a result of the 
 purchase of prior service. 

    Subd. 3.    Covered plans.  This section applies to the 
 following retirement plans: 

    (1) the general state employees retirement plan of the 
 Minnesota state retirement system, established under chapter 
 352; 

    (2) the correctional state employees retirement plan of the 
 Minnesota state retirement system, established under chapter 
 352; 

    (3) the unclassified employees retirement program, 
 established under chapter 352D; 

    (4) the state patrol retirement plan, established under 
 chapter 352B; 

    (5) the legislators retirement plan, established under 
 chapter 3A; 

    (6) the elective state officers' retirement plan, 
 established under chapter 352C; 

    (7) the general employees retirement plan of the public 
 employees retirement association, established under chapter 353; 

    (8) the public employees police and fire retirement plan of 
 the public employees retirement association, established under 
 chapter 353; 

    (9) the local government correctional service retirement 
 plan of the public employees retirement association, established 
 under chapter 353E; 

    (10) the teachers retirement association, established under 
 chapter 354; 

    (11) the Minneapolis employees retirement fund, established 
 under chapter 422A; 

    (12) the Minneapolis teachers retirement fund association, 
 established under chapter 354A; 

    (13) the St. Paul teachers retirement fund association, 
 established under chapter 354A; 

    (14) the Duluth teachers retirement fund association, 
 established under chapter 354A; and 

    (15) the judges' retirement fund, established by sections 
 490.121 to 490.132. 

    HIST: 1975 c 232 s 1; 1981 c 37 s 2; 1981 c 298 s 11; 1983 c 
 286 s 14; 1986 c 444; 1987 c 372 art 1 s 20; art 9 s 35; 1989 c 
 319 art 2 s 23; art 5 s 4; art 13 s 92; 1991 c 340 s 31; 1992 c 
 432 art 2 s 45; 1994 c 528 art 2 s 14; 1995 c 141 art 3 s 20; 
 1995 c 262 art 1 s 13; art 3 s 6; 1997 c 233 art 1 s 61,62; 1999 
 c 222 art 2 s 17; 2000 c 461 art 3 s 44; art 18 s 3; 2002 c 392 
 art 11 s 19 

  356.301 Repealed, 1987 c 284 art 8 s 3 

COMBINED SERVICE DISABILITY

AND SURVIVOR BENEFITS

     356.302 Disability benefit with combined service. 

    Subdivision 1.    Definitions.  (a) The terms used in 
 this section are defined in this subdivision. 

    (b) "Average salary" means the highest average of covered 
 salary for the appropriate period of credited service that is 
 required for the calculation of a disability benefit by the 
 covered retirement plan and that is drawn from any period of 
 credited service and successive years of covered salary in a 
 covered retirement plan. 

    (c) "Covered retirement plan" or "plan" means a retirement 
 plan listed in subdivision 7. 

    (d) "Duty-related" means a disabling illness or injury that 
 occurred while the person was actively engaged in employment 
 duties or that arose out of the person's active employment 
 duties. 

    (e) "General employee retirement plan" means a covered 
 retirement plan listed in subdivision 7, clauses (1) to (8) and 
 (13). 

    (f) "Occupationally disabled" means the condition of having 
 a medically determinable physical or mental impairment that 
 makes a person unable to satisfactorily perform the minimum 
 requirements of the person's employment position or a 
 substantially similar employment position. 

    (g) "Public safety employee retirement plan" means a 
 covered retirement plan listed in subdivision 7, clauses (9) to 
 (12). 

    (h) "Totally and permanently disabled" means the condition 
 of having a medically determinable physical or mental impairment 
 that makes a person unable to engage in any substantial gainful 
 activity and that is expected to continue or has continued for a 
 period of at least one year or that is expected to result 
 directly in the person's death. 

    Subd. 2.    Entitlement.  Notwithstanding any provision 
 of law to the contrary governing any covered retirement plan, a 
 member of a covered retirement plan may receive a combined 
 service disability benefit from each covered retirement plan in 
 which the person has credit for at least one-half year of 
 allowable service if that person meets the applicable qualifying 
 conditions.  Subdivision 3 applies to a member of a general 
 employee retirement plan.  Subdivision 4 applies to a member of 
 a public safety employee retirement plan.  Subdivision 5 applies 
 to a member of a covered retirement plan with both general 
 employee and public safety employee retirement plan service. 

    Subd. 3.    General employee plan eligibility 
 requirements.  A disabled member of a covered retirement plan 
 who has credit for allowable service in a combination of general 
 employee retirement plans is entitled to a combined service 
 disability benefit if the member: 

    (1) is less than 65 years of age on the date of the 
 application for the disability benefit; 

    (2) has become totally and permanently disabled; 

    (3) has credit for allowable service in any combination of 
 general employee retirement plans totaling at least three years; 

    (4) has credit for at least one-half year of allowable 
 service with the current general employee retirement plan before 
 the commencement of the disability; 

    (5) has at least three continuous years of allowable 
 service credit by the general employee retirement plan or has at 
 least a total of three years of allowable service credit by a 
 combination of general employee retirement plans in a 72-month 
 period during which no interruption of allowable service credit 
 from a termination of employment exceeded 29 days; and 

    (6) was not receiving a retirement annuity or disability 
 benefit from any covered general employee retirement plan at the 
 time of the commencement of the disability.  

    Subd. 4.    Public safety plan eligibility requirements. 
  A disabled member of a covered retirement plan who has credit 
 for allowable service in a combination of public safety employee 
 retirement plans is entitled to a combined service disability 
 benefit if the member: 

    (1) has become occupationally disabled; 

    (2) has credit for allowable service in any combination of 
 public safety employee retirement plans totaling at least one 
 year if the disability is duty-related or totaling at least 
 three years if the disability is not duty-related; 

    (3) has credit for at least one-half year of allowable 
 service with the current public safety employee retirement plan 
 before the commencement of the disability; and 

    (4) was not receiving a retirement annuity or disability 
 benefit from any covered public safety employee retirement plan 
 at the time of the commencement of the disability. 

    Subd. 5.    General and public safety plan eligibility 
 requirements.  A disabled member of a covered retirement plan 
 who has credit for allowable service in a combination of both a 
 public safety employee retirement plan and general employee 
 retirement plan must meet the qualifying requirements in 
 subdivisions 3 and 4 to receive a combined service disability 
 benefit from the applicable general employee and public safety 
 employee retirement plans, except that the person need only be a 
 member of a covered retirement plan at the time of the 
 commencement of the disability and that the minimum allowable 
 service requirements of subdivisions 3, clauses (3) and (5), and 
 4, clauses (3) and (4), may be met in any combination of covered 
 retirement plans. 

    Subd. 6.    Combined service disability benefit 
 computation.  (a) The combined service disability benefit from 
 each covered retirement plan must be based on the allowable 
 service in each retirement plan, except as specified in 
 paragraphs (b) to (f). 

    (b) The disability benefit must be governed by the law in 
 effect for each covered retirement plan on the date of the 
 commencement of the member's most recent qualifying disability 
 as a member of a covered retirement plan. 

    (c) All plans must base the disability benefit on the same 
 average salary figure to the extent practicable. 

    (d) If the method of the covered retirement plan used to 
 compute a disability benefit varies based on the length of 
 allowable service credit, the benefit accrual formula 
 percentages used by the plan must recognize the allowable 
 service credit in the plan as a continuation of any previous 
 allowable service credit with other covered retirement plans. 

    (e) If the covered retirement plan is a defined benefit or 
 formula plan and the method used to compute a disability benefit 
 does not vary based on the length of allowable service credit, 
 the portion of the specified benefit amount from the plan must 
 bear the same proportion to the total specified benefit amount 
 as the allowable service credit in that plan bears to the total 
 allowable service credit in all covered retirement plans.  If 
 the covered retirement plan is a defined contribution or 
 nonformula plan, the disability benefit amount for allowable 
 service under the plan is not affected, but the service and the 
 covered salary under the plan must be used as applicable in 
 calculations by other covered retirement plans. 

    (f) A period for which a person has allowable service 
 credit in more than one covered retirement plan must be used 
 only once in determining the total allowable service credit for 
 calculating the combined service disability benefit, with any 
 period of duplicated service credit handled as provided in 
 section 356.30, subdivision 1, paragraphs (g) and (h). 

    (g) If a person is entitled to a minimum benefit payable 
 from one of the public pension plans enumerated in section 
 356.30, subdivision 3, the person may receive additional credit 
 for only those years of service in another covered pension plan 
 that, when added to the years of service in the pension plan 
 that is paying the minimum benefit, exceed the years of service 
 on which the minimum benefit is based. 

    (h) A partially employed recipient of a disability benefit 
 must have any current reemployment income plus the total 
 disability payments from all plans enumerated in subdivision 7 
 added together, and then compared to their final salary rate as 
 a public employee.  If current income plus the total disability 
 payments exceed the final salary of the person at the time of 
 retirement, then disability benefit payments from all the plans 
 must be reduced on a prorated basis relative to the years of 
 service in each fund so that earnings plus benefit payments do 
 not exceed the final salary rate. 

    Subd. 7.    Covered retirement plans.  This section 
 applies to the following retirement plans: 

    (1) the general state employees retirement plan of the 
 Minnesota state retirement system, established by chapter 352; 

    (2) the unclassified state employees retirement program of 
 the Minnesota state retirement system, established by chapter 
 352D; 

    (3) the general employees retirement plan of the public 
 employees retirement association, established by chapter 353; 

    (4) the teachers retirement association, established by 
 chapter 354; 

    (5) the Duluth teachers retirement fund association, 
 established by chapter 354A; 

    (6) the Minneapolis teachers retirement fund association, 
 established by chapter 354A; 

    (7) the St. Paul teachers retirement fund association, 
 established by chapter 354A; 

    (8) the Minneapolis employees retirement fund, established 
 by chapter 422A; 

    (9) the state correctional employees retirement plan of the 
 Minnesota state retirement system, established by chapter 352; 

    (10) the state patrol retirement plan, established by 
 chapter 352B; 

    (11) the public employees police and fire plan of the 
 public employees retirement association, established by chapter 
 353; 

    (12) the local government correctional service retirement 
 plan of the public employees retirement association, established 
 by chapter 353E; and 

    (13) the judges' retirement plan, established by sections 
 490.121 to 490.132. 

    HIST: 1987 c 284 art 8 s 1; 1988 c 709 art 5 s 39,40; 1989 c 
 319 art 5 s 5; 1990 c 570 art 12 s 56,57; 1992 c 432 art 2 s 46; 
 1993 c 307 art 2 s 18; art 4 s 51; 1995 c 141 art 3 s 20; 1999 c 
 222 art 2 s 18; 2000 c 461 art 3 s 46; 2002 c 392 art 11 s 20 

     356.303 Survivor benefit with combined service. 

    Subdivision 1.    Definitions.  (a) The terms used in 
 this section are defined in this subdivision. 

    (b) "Average salary" means the highest average of covered 
 salary for the appropriate period of credited service that is 
 required for the calculation of a survivor annuity or a survivor 
 benefit, whichever applies, by the covered retirement plan and 
 that is drawn from any period of credited service and covered 
 salary in a covered retirement plan. 

    (c) "Covered retirement plan" or "plan" means a retirement 
 plan enumerated in subdivision 4. 

    (d) "Deceased member" means a person who on the date of 
 death was an active member of a covered retirement plan and who 
 has reached the minimum age, if any, that is required by the 
 covered retirement plan as part of qualifying for a survivor 
 annuity or survivor benefit. 

    (e) "Surviving child" means a child of a deceased member 
 (1) who is unmarried; (2) who has not reached age 18, or, if a 
 full-time student, who has not reached a higher age as specified 
 by the applicable covered retirement plan; and (3) if specified 
 by that plan, who was actually dependent on the deceased member 
 for a specified proportion of support before the deceased 
 member's death.  "Surviving child" includes a natural child, an 
 adopted child, or a child of a deceased member who is conceived 
 during the member's lifetime and who is born after the member's 
 death. 

    (f) "Surviving spouse" means the legally married husband or 
 wife, whichever applies, of the deceased member who was residing 
 with the deceased member on the date of death and who, if 
 specified by the applicable covered retirement plan, had been 
 married to the deceased member for a specified period of time 
 before the death of the deceased member. 

    (g) "Survivor annuity" means the entitlement to a future 
 amount payable to a survivor as the remainder interest of an 
 optional annuity form implied by law as having been chosen by a 
 deceased member before the date of death and effective on the 
 date of death or provided automatically. 

    (h) "Survivor benefit" means an entitlement to a future 
 amount payable to a survivor that is not included in the 
 definition of a survivor annuity. 

    Subd. 2.    Entitlement; eligibility.  Notwithstanding 
 any provision of law to the contrary governing a covered 
 retirement plan, a person who is the survivor of a deceased 
 member of a covered retirement plan may receive a combined 
 service survivor benefit from each covered retirement plan in 
 which the deceased member had credit for at least one-half year 
 of allowable service if the deceased member: 

    (1) had credit for sufficient allowable service in any 
 combination of covered retirement plans to meet any minimum 
 allowable service credit requirement of the covered retirement 
 fund for qualification for a survivor benefit or annuity; 

    (2) had credit for at least one-half year of allowable 
 service with the most recent covered retirement plan before the 
 date of death and was an active member of that covered 
 retirement plan on the date of death; and 

    (3) was not receiving a retirement annuity from any covered 
 retirement plan on the date of death. 

    Subd. 3.    Combined service survivor benefit computation. 
  (a) The combined service survivor annuity or survivor benefit 
 from each covered retirement plan must be based on the allowable 
 service in each covered retirement plan, except as provided by 
 paragraphs (b) to (f). 

    (b) The survivor annuity or survivor benefit must be 
 governed by the law in effect for each covered retirement plan 
 on the date of the death of the deceased member. 

    (c) All plans must base the survivor annuity or survivor 
 benefit on the same average salary figure if the annuity or 
 benefit is salary related. 

    (d) If the method of the covered retirement plan used to 
 compute a survivor benefit or annuity varies based on the length 
 of allowable service credit, the benefit accrual formula 
 percentages used by the plan must recognize the allowable 
 service credit in the plan as a continuation of any previous 
 allowable service credit with other covered retirement plans. 

    (e) If the covered retirement plan is a defined benefit or 
 formula plan and the method used to compute a survivor benefit 
 or annuity does not vary based on the length of allowable 
 service credit, the portion of the specified benefit or annuity 
 amount from the covered retirement plan must bear the same 
 proportion to the total specified benefit or annuity amount as 
 the allowable service credit in that plan bears to the total 
 allowable service credit in all covered retirement plans.  If 
 the covered retirement plan is a defined contribution or 
 nonformula plan, the survivor benefit amount for allowable 
 service under the plan is not affected, but the service and 
 covered salary under the plan must be used in calculations by 
 other covered retirement plans. 

    (f) A period for which a deceased member had allowable 
 service credit in more than one covered retirement plan must be 
 used only once in determining the total allowable service credit 
 for calculating the combined service survivor annuity or 
 survivor benefit.  A period of duplicated service credit must be 
 handled as provided in section 356.30, subdivision 1, paragraphs 
 (g) and (h). 

    (g) If a person is entitled to a minimum benefit payable 
 from a public pension plan named in section 356.30, subdivision 
 3, the person may receive additional credit for only those years 
 of service in another covered pension plan that, when added to 
 the years of service in the pension plan that is paying the 
 minimum benefit, exceed the years of service on which the 
 minimum benefit is based. 

    Subd. 4.    Covered retirement plans.  This section 
 applies to the following retirement plans: 

    (1) the legislators retirement plan, established by chapter 
 3A; 

    (2) the general state employees retirement plan of the 
 Minnesota state retirement system, established by chapter 352; 

    (3) the correctional state employees retirement plan of the 
 Minnesota state retirement system, established by chapter 352; 

    (4) the state patrol retirement plan, established by 
 chapter 352B; 

    (5) the elective state officers retirement plan, 
 established by chapter 352C; 

    (6) the unclassified state employees retirement program, 
 established by chapter 352D; 

    (7) the general employees retirement plan of the public 
 employees retirement association, established by chapter 353; 

    (8) the public employees police and fire plan of the public 
 employees retirement association, established by chapter 353; 

    (9) the local government correctional service retirement 
 plan of the public employees retirement association, established 
 by chapter 353E; 

    (10) the teachers retirement association, established by 
 chapter 354; 

    (11) the Duluth teachers retirement fund association, 
 established by chapter 354A; 

    (12) the Minneapolis teachers retirement fund association, 
 established by chapter 354A; 

    (13) the St. Paul teachers retirement fund association, 
 established by chapter 354A; 

    (14) the Minneapolis employees retirement fund, established 
 by chapter 422A; and 

    (15) the judges' retirement fund, established by sections 
 490.121 to 490.132. 

    HIST: 1987 c 284 art 8 s 2; 1989 c 319 art 5 s 6; 1992 c 432 
 art 2 s 47; 1995 c 141 art 3 s 20; 1999 c 222 art 2 s 19; 2000 c 
 461 art 3 s 46; 2002 c 392 art 11 s 21 

  356.305 Repealed, 2002 c 392 art 11 s 53 

  356.306 Repealed, 2002 c 392 art 11 s 53 

  356.31 Repealed, 2002 c 392 art 11 s 53 

     356.315 Retirement benefit formula percentages. 

    Subdivision 1.    Coordinated plan members.  The 
 applicable benefit accrual rate is 1.2 percent. 

    Subd. 2.    Coordinated plan members.  The applicable 
 benefit accrual rate is 1.7 percent. 

    Subd. 2a.    Coordinated members.  The applicable 
 benefit accrual rate is 2.0 percent. 

    Subd. 3.    Basic plan members.  The applicable benefit 
 accrual rate is 2.2 percent. 

    Subd. 4.    Basic plan members.  The applicable benefit 
 accrual rate is 2.7 percent. 

    Subd. 5.    Correctional plan members.  The applicable 
 benefit accrual rate is 2.4 percent. 

    Subd. 5a.    Local government correctional service plan. 
  The applicable benefit accrual rate is 1.9 percent.  

    Subd. 6.    State troopers plan and police and fire plan 
 members.  The applicable benefit accrual rate is 3.0 percent. 

    Subd. 7.    Judges plan.  The applicable benefit accrual 
 rate is 2.7 percent. 

    Subd. 8.    Judges plan.  The applicable benefit accrual 
 rate is 3.2 percent. 

    Subd. 9.    Future benefit accrual rate increases.  
 After January 2, 1998, benefit accrual rate increases under this 
 section must apply only to allowable service or formula service 
 rendered after the effective date of the benefit accrual rate 
 increase. 

    HIST: 2002 c 392 art 11 s 22 

     356.32 Proportionate annuity at age 65. 

    Subdivision 1.    Proportionate retirement annuity.  (a) 
 Notwithstanding any provision to the contrary of the laws 
 governing any of the retirement funds enumerated in subdivision 
 2, any person who is an active member of any applicable fund, 
 who has credit for at least one year but less than ten years of 
 allowable service in one or more of the covered plans, and who 
 terminates active service under a mandatory retirement law or 
 policy or at age 65 or older, or at the normal retirement age if 
 this age is not age 65, for any reason is entitled upon making 
 written application on the form prescribed by the chief 
 administrative officer of the plan to a proportionate retirement 
 annuity from each covered plan in which the person has allowable 
 service credit.  

    (b) The proportionate annuity must be calculated under the 
 applicable laws governing annuities based upon allowable service 
 credit at the time of retirement and the person's average salary 
 for the highest five successive years of allowable service or 
 the average salary for the entire period of allowable service if 
 less than five years.  

    (c) Nothing in this section prevents the imposition of the 
 appropriate early retirement reduction of an annuity which 
 commences before the normal retirement age. 

    Subd. 2.    Covered retirement plans.  The provisions of 
 this section apply to the following retirement plans: 

    (1) the general state employees retirement plan of the 
 Minnesota state retirement system, established under chapter 
 352; 

    (2) the correctional state employees retirement plan of the 
 Minnesota state retirement system, established under chapter 
 352; 

    (3) the state patrol retirement plan, established under 
 chapter 352B; 

    (4) the general employees retirement plan of the public 
 employees retirement association, established under chapter 353; 

    (5) the public employees police and fire plan of the public 
 employees retirement association, established under chapter 353; 

    (6) the teachers retirement association, established under 
 chapter 354; 

    (7) the Minneapolis employees retirement fund, established 
 under chapter 422A; 

    (8) the Duluth teachers retirement fund association, 
 established under chapter 354A; 

    (9) the Minneapolis teachers retirement fund association, 
 established under chapter 354A; and 

    (10) the St. Paul teachers retirement fund association, 
 established under chapter 354A.  

    HIST: 1975 c 183 s 2; 1976 c 130 s 1; 1978 c 649 s 3; 1978 c 
 796 s 44; 1979 c 40 s 10; 1979 c 217 s 27; 1980 c 342 s 15; 1981 
 c 37 s 2; 1981 c 224 s 174; 1981 c 298 s 11; 1987 c 372 art 1 s 
 21; 1989 c 319 art 13 s 93; 1995 c 141 art 3 s 20; 1997 c 233 
 art 1 s 63; 2002 c 392 art 11 s 23 

  356.325 Repealed, 2002 c 392 art 11 s 53 

  356.34 Repealed, 1978 c 781 s 13 

  356.35 Repealed, 2002 c 392 art 11 s 53 

  356.36 Repealed, 2002 c 392 art 11 s 53 

  356.37 Repealed, 2002 c 392 art 11 s 53 

  356.371 Repealed, 2002 c 392 art 11 s 53 

  356.372 Repealed, 2002 c 392 art 11 s 53 

  356.38 Repealed, 2002 c 392 art 11 s 53 

  356.39 Repealed, 2002 c 392 art 11 s 53 

     356.40 Date for payment of annuities and benefits. 

    (a) Notwithstanding any law to the contrary, all annuities 
 and benefits payable on and after December 1, 1977 by a covered 
 retirement fund, as defined in section 356.30, subdivision 3, 
 must be paid in advance for each month during the first week of 
 that month.  The bylaws of local retirement funds must be 
 amended accordingly.  

    (b) In no event, however, may this section authorize the 
 payment of both a retirement annuity and a surviving spouse's 
 benefit in one month where the law governing the applicable 
 retirement fund provides for the payment of the retired member's 
 retirement annuity to the surviving spouse for the month in 
 which the retired member dies. 

    HIST: 1977 c 388 s 3; 2002 c 392 art 11 s 24 

     356.403 Normal retirement age; savings clause. 

    The intent of the legislature in sections 352.01, 
 subdivision 25; 353.01, subdivision 37; 354.05, subdivision 38; 
 and 354A.011, subdivision 15a, is to create a normal retirement 
 age for persons first covered by those sections after May 16, 
 1989, that is the same as the retirement age in the federal 
 Social Security law, including future amendments to that law.  
 If a court determines that the legislature may not incorporate 
 by reference the future changes in federal Social Security law, 
 the legislature reserves the right to amend the appropriate 
 sections to make the normal retirement age conform to the 
 retirement age in the federal Social Security law.  No person 
 first covered by any of those sections after May 16, 1989, has a 
 right to a normal retirement age that is less than the 
 retirement age in the federal Social Security law. 

    HIST: 2002 c 392 art 11 s 25 

     356.405 Combined payment of retirement annuities. 

    (a) The public employees retirement association and the 
 Minnesota state retirement system are permitted to combine 
 payments to retirees.  The total payment must be equal to the 
 amount that is payable if payments were kept separate.  The 
 retiree must agree, in writing, to have the payment combined. 

    (b) Each plan must calculate the benefit amounts under the 
 laws governing the plan and the required reserves and future 
 mortality losses or gains must be paid or accrued to the plan 
 from which the service was earned.  Each plan must account for 
 its portion of the payment separately, and there may be no 
 additional actuarial liabilities realized by either plan. 

    (c) The plan making the payment would be responsible for 
 issuing one payment and making address changes, tax withholding 
 changes, and other administrative functions needed to process 
 the payment. 

    HIST: 2002 c 392 art 11 s 26 

     356.406 Loss of entitlement to benefits for survivor 
  causing death of pension plan member. 

    Subdivision 1.    Definitions.  (a) Each of the words or 
 terms defined in this subdivision has the meaning indicated. 

    (b) "Public pension plan" means any retirement plan or fund 
 enumerated in section 356.20, subdivision 2, or 356.30, 
 subdivision 3, any relief association governed by section 69.77 
 or sections 69.771 to 69.775, any retirement plan governed by 
 chapter 354B or 354C, the Hennepin county supplemental 
 retirement plan governed by sections 383B.46 to 383B.52, or any 
 housing and redevelopment authority retirement plan. 

    (c) "Public pension plan member" means a person who is a 
 participant covered by a public pension plan; a former 
 participant of a public pension plan who has sufficient service 
 to be entitled to receive a future retirement annuity or service 
 pension; a recipient of a retirement annuity, service pension, 
 or disability benefit from a public pension plan; or a former 
 participant of a public pension plan who has member or employee 
 contributions to the person's credit in the public pension plan. 

    (d) "Survivor" means the surviving spouse, a former spouse, 
 a surviving child, a joint annuitant, a designated recipient of 
 a second or remainder portion of an optional annuity form, a 
 beneficiary, or the estate of a deceased public pension plan 
 member, as those terms are commonly understood or defined in the 
 benefit plan document of the public pension plan. 

    (e) "Survivor benefit" means a surviving spouse benefit, 
 surviving child benefit, second or remainder portion of an 
 optional annuity form, a death benefit, a funeral benefit, or a 
 refund of member or employee contributions payable on account of 
 the death of a public pension plan member as provided for in the 
 benefit plan document of the public pension plan. 

    Subd. 2.    Suspension of survivor benefits upon felony 
 charge.  During the pendency of a charge of a survivor of a 
 felony that caused the death of a public pension plan member, of 
 criminal liability for a death by wrongful act felony, or of 
 conspiracy to commit a death by wrongful act felony, the 
 entitlement of that survivor to receive a survivor benefit is 
 suspended. 

    Subd. 3.    Forfeiture of survivor benefits upon felony 
 conviction.  On final conviction of a survivor of a felony 
 that caused the death of a public pension plan member, of 
 criminal liability for a death by wrongful act felony, or of 
 conspiracy to commit a death by wrongful act felony, the 
 entitlement of that survivor to receive a survivor benefit is 
 forfeited, including entitlement for any previously suspended 
 survivor benefits under subdivision 2. 

    Subd. 4.    Suspension or forfeiture actions separate.  
 The charge of one survivor under subdivision 2 or the conviction 
 of one survivor under subdivision 3 does not affect the 
 entitlement of another survivor to a survivor benefit. 

    Subd. 5.    Recovery of certain benefits.  If monthly 
 benefits or a refund of the balance of a participant or former 
 participant's account have already been paid to an individual 
 who is later charged or convicted as described under this 
 section, the executive director or chief administrative officer 
 of the public pension plan shall attempt to recover the amounts 
 paid.  Payment may be made to the next beneficiary or survivor 
 only in an amount equal to the amount recovered and in the 
 amount of any future payments that would legally accrue to 
 another survivor under the applicable laws of the retirement 
 plan. 

    Subd. 6.    Disposition of forfeited survivor benefits.  
 If the benefit plan document governing the public pension plan 
 does not provide for the disposition of forfeited benefits, 
 survivor benefits forfeited under this section must be deposited 
 in the general fund of the state. 

    HIST: 2002 c 392 art 11 s 27 

     356.407 Restoration of survivor benefits. 

    Subdivision 1.    Restoration upon termination of 
 remarriage.  Notwithstanding any provision to the contrary of 
 the laws governing any of the retirement plans enumerated in 
 subdivision 2, any person who was receiving a surviving spouse's 
 benefit from any of those plans and whose benefit terminated 
 solely because of remarriage is, if the remarriage terminates 
 for any reason, again entitled upon reapplication to a surviving 
 spouse's benefit; provided, however, that the person is not 
 entitled to retroactive payments for the period of remarriage.  
 The benefit resumes at the level which the person would have 
 been receiving if there had been no remarriage.  This section 
 applies prospectively to any person who first becomes entitled 
 to receive a surviving spouse's benefit on or after May 18, 
 1975, and also applies retroactively to any person who first 
 became entitled to receive a surviving spouse's benefit before 
 May 18, 1975; provided, however, that no person is entitled to 
 retroactive payments for any period of time before May 18, 1975. 

    Subd. 2.    Covered funds.  The provisions of this 
 section apply to the following retirement funds: 

    (1) the general employees retirement plan of the public 
 employees retirement association established under chapter 353; 

    (2) the public employees police and fire plan of the public 
 employees retirement association established under chapter 353; 

    (3) the state patrol retirement plan established under 
 chapter 352B; 

    (4) the legislators retirement plan established under 
 chapter 3A; 

    (5) the elective state officers retirement plan established 
 under chapter 352C; 

    (6) the teachers retirement association established under 
 chapter 354; and 

    (7) the Minneapolis employees retirement fund established 
 under chapter 422A.  

    HIST: 2002 c 392 art 11 s 28 

     356.41 Benefit adjustments for certain disability and 
  survivor benefits. 

    Disability benefits payable to a disabilitant, if not 
 otherwise included in the participation in the Minnesota 
 postretirement investment fund, and survivor benefits payable to 
 a survivor from any public pension plan which participates in 
 the Minnesota postretirement investment fund must be adjusted in 
 the same manner, at the same times and in the same amounts as 
 are benefits payable from the Minnesota postretirement 
 investment fund to eligible benefit recipients of that public 
 pension plan.  If a disability benefit is not included in the 
 participation in the Minnesota postretirement investment fund, 
 the disability benefit is recomputed as a retirement annuity and 
 the recipient would have been eligible for an adjustment under 
 this section if the disability benefit was not recomputed, the 
 recipient remains eligible for the adjustment under this section 
 after the recomputation.  For the survivor of a deceased 
 annuitant who receives a survivor benefit calculated under a 
 prior law rather than the second portion of a joint and survivor 
 annuity, any period of receipt of a retirement annuity by the 
 annuitant must be utilized in determining the period of receipt 
 for eligibility to receive an adjustment under this section.  No 
 recipient, however, is entitled to more than one adjustment 
 under this section or section 11A.18 applicable to one benefit 
 at one time by reason of this section.  

    HIST: 1978 c 665 s 1; 1980 c 607 art 14 s 45 subd 2; 1982 c 
 578 art 3 s 11; 1987 c 259 s 59; 2002 c 392 art 11 s 29 

     356.42 Postretirement adjustment; lump sum payments. 

    Subdivision 1.    Entitlement.  A person who is 
 receiving a retirement annuity, a disability benefit, or a 
 surviving spouse's annuity or benefit from a retirement fund 
 specified in subdivision 3, clauses (1) to (8), is entitled to 
 receive a postretirement adjustment from the applicable 
 retirement fund in the amount specified in subdivision 2, if the 
 annuity or benefit was computed under: 

    (1) the laws in effect before June 1, 1973, if the person 
 is receiving an annuity or benefit from the retirement fund 
 specified in subdivision 3, clause (4); 

    (2) the laws in effect before July 1, 1973, if the person 
 is receiving an annuity or benefit from a retirement fund 
 specified in subdivision 3, clause (1), (2), (3), or (5); 

    (3) the metropolitan transit commission transit operating 
 division employees retirement fund plan document in effect on or 
 before December 31, 1977, if the person is receiving a 
 retirement annuity, a disability benefit, or a surviving 
 spouse's annuity or benefit from the retirement fund specified 
 in subdivision 3, clause (5); 

    (4) the laws in effect before May 1, 1974, and before any 
 adjustment under Laws 1987, chapter 372, article 3, if the 
 person is receiving an annuity or benefit from the retirement 
 fund specified in subdivision 3, clause (6); 

    (5) the laws in effect before January 1, 1970, if the 
 person is receiving an annuity or benefit from the retirement 
 fund specified in subdivision 3, clause (7); or 

    (6) the laws in effect before June 30, 1971, if the person 
 is receiving an annuity or benefit from the retirement fund 
 specified in subdivision 3, clause (8). 

    Subd. 2.    Amount of postretirement adjustment; payment. 
  (a) For any person receiving an annuity or benefit on 
 November 30, 1989, and entitled to receive a postretirement 
 adjustment under subdivision 1, the postretirement adjustment is 
 a lump-sum payment calculated under paragraph (b) or (c). 

    (b) For coordinated plan annuity or benefit recipients, the 
 postretirement adjustment in 1989 is $25 for each full year of 
 allowable service credited to the person by the respective 
 retirement fund.  In 1990 and each following year, the 
 postretirement adjustment is the amount payable in the preceding 
 year increased by the same percentage applied to regular 
 annuities paid from the postretirement fund or, for the 
 retirement funds specified in subdivision 3, clauses (6), (7), 
 and (8), by the same percentage applied under the articles of 
 incorporation and bylaws of these funds. 

    (c) For basic plan annuity or benefit recipients, the 
 postretirement adjustment in 1989 is the greater of: 

    (1) $25 for each full year of allowable service credited to 
 the person by the respective retirement fund; or 

    (2) the difference between: 

    (i) the product of $400 times the number of full years of 
 allowable service credited to the person by the respective 
 retirement fund; and 

    (ii) the sum of the benefits payable to the person from any 
 Minnesota public employee pension plan, and cash benefits 
 payable to the person from the Social Security Administration. 

    In 1990 and each following year, each eligible basic plan 
 annuity or benefit recipient shall receive the amount received 
 in the preceding year increased by the same percentage applied 
 to regular annuities paid from the postretirement fund or, for 
 the retirement funds specified in subdivision 3, clauses (6), 
 (7), and (8), by the same percentage applied under the articles 
 of incorporation and bylaws of these funds. 

    (d) The postretirement adjustment provided for in this 
 section must be paid on December 1 to those persons receiving an 
 annuity or benefit on the preceding November 30.  This section 
 does not authorize the payment of a postretirement adjustment to 
 an estate if the annuity or benefit recipient dies before the 
 November 30 eligibility date.  The postretirement adjustment 
 provided for in this section must be paid automatically unless 
 the intended recipient files a written notice with the 
 retirement fund requesting that the postretirement adjustment 
 not be paid or returns the amount of adjustment to the 
 retirement fund.  Written notice of the waiver of the 
 postretirement adjustment is irrevocable for the year during 
 which it was made. 

    Subd. 3.    Covered retirement plans.  The 
 postretirement adjustment provided in this section applies to 
 the following retirement funds: 

    (1) the general employees retirement plans of the public 
 employees retirement association; 

    (2) the public employees police and fire plan of the public 
 employees retirement association; 

    (3) the teachers retirement association; 

    (4) the state patrol retirement plan; 

    (5) the state employees retirement plan of the Minnesota 
 state retirement system; 

    (6) the Minneapolis teachers retirement fund association 
 established under chapter 354A; 

    (7) the St. Paul teachers retirement fund association 
 established under chapter 354A; and 

    (8) the Duluth teachers retirement fund association 
 established under chapter 354A. 

    HIST: 2002 c 392 art 11 s 30 

     356.43 Supplemental benefit; lump-sum payments; 
  Minneapolis employees retirement fund. 

    Subdivision 1.    Entitlement.  Any person who is 
 receiving either an annuity that was computed under the laws in 
 effect before March 5, 1974, or a "$2 bill and annuity" annuity 
 from the Minneapolis employees retirement fund is entitled to 
 receive a supplemental benefit lump-sum payment from the 
 retirement fund in the amount specified in subdivision 2.  

    Subd. 2.    Amount of payment.  (a) For any person 
 receiving an annuity or benefit on November 30, 1991, and 
 entitled to receive a supplemental benefit lump-sum payment 
 under subdivision 1, the payment is $28 for each full year of 
 allowable service credited to the person by the retirement fund. 

    In 1992 and each following year, each eligible benefit 
 recipient is entitled to receive the amount received in the 
 preceding year increased by the same percentage applied on the 
 most recent January 1 to regular annuities paid from the 
 Minneapolis employees retirement fund. 

    (b) The payment provided for in this section is payable on 
 December 1, 1991, to those persons receiving an annuity or 
 benefit on November 30, 1991.  In subsequent years, the payment 
 must be made on December 1 to those persons receiving an annuity 
 or benefit on the preceding November 30.  This section does not 
 authorize payment to an estate if the annuity or benefit 
 recipient dies before the November 30 eligibility date.  The 
 payment provided for in this section must be paid automatically 
 unless the intended recipient files a written notice with the 
 retirement fund requesting that it not be paid. 

    Subd. 3.    State appropriation.  Payments under this 
 section are the responsibility of the Minneapolis employees 
 retirement fund.  A separate state aid is provided toward the 
 level dollar amortized cost of the payments.  For state fiscal 
 years 1992 to 2001 inclusive, there is appropriated annually 
 $550,000 from the general fund to the commissioner of finance to 
 be added, in quarterly installments, to the annual state 
 contribution amount determined under section 422A.101, 
 subdivision 3.  After fiscal year 2001, any difference between 
 the cumulative benefit amounts actually paid under this section 
 after fiscal year 1991 and the amounts paid to the retirement 
 fund by the state under this subdivision, plus investment 
 earnings on the aid, shall be included by the retirement fund 
 board and the actuary retained by the legislative commission on 
 pensions and retirement in determining the financial 
 requirements of the fund and contributions under section 
 422A.101. 

    HIST: 2002 c 392 art 11 s 31 

     356.431 Conversion of lump-sum postretirement and 
  supplemental payment to an increased monthly annuity. 

    Subdivision 1.    Lump-sum postretirement payment 
 conversion.  For benefits paid after December 31, 2001, to 
 eligible persons under sections 356.42 and 356.43, the amount of 
 the most recent lump-sum benefit payable to an eligible 
 recipient under sections 356.86 and 356.865 must be divided by 
 12.  The result must be added to the monthly annuity or benefit 
 otherwise payable to an eligible recipient, must become a 
 permanent part of the benefit recipient's pension, and must be 
 included in any pension benefit subject to future increases. 

    Subd. 2.    Transfer of required reserves to Minnesota 
 postretirement investment fund.  Public employee retirement 
 funds participating in the state board of investment 
 postretirement investment fund shall transfer the required 
 reserves for the postretirement conversion under subdivision 1 
 to the postretirement investment fund by January 31, 2002. 

    HIST: 2002 c 392 art 11 s 32 

     356.44 Partial payment of pension plan refund. 

    (a) Notwithstanding any provision of law to the contrary, a 
 member of a pension plan listed in section 356.30, subdivision 
 3, with at least two years of forfeited service taken from a 
 single pension plan, may repay a portion of all refunds.  A 
 partial refund repayment must comply with this section. 

    (b) The minimum portion of a refund repayment is one-third 
 of the total service credit period of all refunds taken from a 
 single plan.  

    (c) The cost of the partial refund repayment is the product 
 of the cost of the total repayment multiplied by the ratio of 
 the restored service credit to the total forfeited service 
 credit.  The total repayment amount includes interest at the 
 annual rate of 8.5 percent, compounded annually, from the refund 
 date to the date repayment is received.  

    (d) The restored service credit must be allocated based on 
 the relationship the restored service bears to the total service 
 credit period for all refunds taken from a single pension plan. 

    (e) This section does not authorize a public pension plan 
 member to repay a refund if the law governing the plan does not 
 authorize the repayment of a refund of member contributions. 

    HIST: 2002 c 392 art 11 s 33 

     356.441 Repayment of refunds. 

    Repayment of a refund and interest on that refund permitted 
 under laws governing any public pension plan in Minnesota may be 
 made with funds distributed from a plan qualified under the 
 federal Internal Revenue Code of 1986, section 401(a), as 
 amended through December 31, 1988, or an annuity qualified under 
 the federal Internal Revenue Code of 1986, section 403(a).  
 Repayment may also be made with funds distributed from an 
 individual retirement account used solely to receive a 
 nontaxable rollover from that type of a plan or annuity.  The 
 repaid refund must be separately accounted for as member 
 contributions not previously taxed.  Before accepting any 
 transfers to which this section applies, the executive director 
 must require the member to provide written documentation to 
 demonstrate that the amounts to be transferred are eligible for 
 a tax-free rollover and qualify for that treatment under the 
 federal Internal Revenue Code of 1986.  

    HIST: 2002 c 392 art 11 s 34 

  356.45 Repealed, 2002 c 392 art 11 s 53 

  356.451 Repealed, 2002 c 392 art 11 s 53 

  356.452 Repealed, 2002 c 392 art 11 s 53 

  356.453 Repealed, 2002 c 392 art 11 s 53 

  356.454 Repealed, 2002 c 392 art 11 s 53 

  356.455 Repealed, 2002 c 392 art 11 s 53 

     356.46 Application for retirement annuity; procedure for 
  electing annuity form. 

    Subdivision 1.    Definitions.  As used in this section, 
 each of the following terms shall have the meaning given. 

    (a) "Annuity form" means the payment procedure and duration 
 of a retirement annuity or disability benefit available to a 
 member of a public pension fund, based on the period over which 
 a retirement annuity or disability benefit is payable, 
 determined by the number of persons to whom the retirement 
 annuity or disability benefit is payable, and the amount of the 
 retirement annuity or disability benefit which is payable to 
 each person. 

    (b) "Joint and survivor optional annuity" means an optional 
 annuity form which provides a retirement annuity or disability 
 benefit to a retired member and the spouse of the member on a 
 joint basis during the lifetime of the retired member and all or 
 a portion of the original retirement annuity or disability 
 benefit amount to the surviving spouse in the event of the death 
 of the retired member. 

    (c) "Optional annuity form" means an annuity form which is 
 elected by a member and is not provided automatically as the 
 standard annuity form of the public pension plan. 

    (d) "Public pension plan" means a public pension plan as 
 defined under section 356.615, paragraph (b). 

    (e) "Retirement annuity" means a series of monthly payments 
 to which a former or retired member of a public pension fund is 
 entitled due to attaining a specified age and acquiring credit 
 for a specified period of service, which includes a retirement 
 annuity, retirement allowance, or service pension.  

    (f) "Disability benefit" means a series of monthly payments 
 to which a former or disabled member of a public pension fund is 
 entitled due to a physical or mental inability to engage in 
 specified employment. 

    Subd. 2.    Provision of information on annuity forms.  
 Every public pension plan which provides for an annuity form 
 other than a single life retirement annuity as an option which 
 can be elected by an active, disabled, or retiring member shall 
 provide as a part of, or accompanying the annuity application 
 form, a written statement summarizing the optional annuity forms 
 which are available, a general indication of the consequences of 
 selecting one annuity form over another, a calculation of the 
 actuarial reduction in the amount of the retirement annuity 
 which would be required for each optional annuity form, and the 
 procedure to be followed to obtain more information from the 
 public pension fund concerning the optional annuity forms 
 provided by the plan. 

    Subd. 3.    Requirement of notice to member's spouse.  
 (a) If a public pension plan provides optional retirement 
 annuity forms which include a joint and survivor optional 
 retirement annuity form potentially applicable to the surviving 
 spouse of a member, the executive director of the public pension 
 plan shall send a copy of the written statement required by 
 subdivision 2 to the spouse of the member before the member's 
 election of an optional retirement annuity.  

    (b) Following the election of a retirement annuity by the 
 member, a copy of the completed retirement annuity application 
 and retirement annuity beneficiary form, if applicable, must be 
 sent by the public pension plan to the spouse of the retiring 
 member.  A signed acknowledgment must be required from the 
 spouse confirming receipt of a copy of the completed retirement 
 annuity application and retirement annuity beneficiary form, 
 unless the spouse's signature confirming the receipt is on the 
 annuity application form.  If the required signed acknowledgment 
 is not received from the spouse within 30 days, the public 
 pension plan must send another copy of the completed retirement 
 annuity application and retirement annuity beneficiary form, if 
 applicable, to the spouse by certified mail with restricted 
 delivery. 

    HIST: 2002 c 392 art 11 s 35 

     356.465 Supplemental needs trust as optional annuity 
  form recipient. 

    Subdivision 1.    Inclusion as recipient.  
 Notwithstanding any provision to the contrary of the laws, 
 articles of incorporation, or bylaws governing a covered 
 retirement plan specified in subdivision 3, a retiring member 
 may designate a qualified supplemental needs trust under 
 subdivision 2 as the remainder recipient on an optional 
 retirement annuity form for a period not to exceed the lifetime 
 of the beneficiary of the supplemental needs trust. 

    Subd. 2.    Definition of qualified supplemental needs 
 trust.  A qualified supplemental needs trust is a trust that: 

    (1) was established on or after July 1, 1992; 

    (2) was established solely for the benefit of one person 
 who has a disability under federal Social Security 
 Administration supplemental security income or retirement, 
 survivors, and disability insurance disability determination 
 standards and who was determined as such before the creation of 
 the trust; 

    (3) is funded, in whole or in part, by the primary 
 recipient of the optional annuity form and, unless the trust is 
 a Zebley trust, is not funded by the beneficiary, the 
 beneficiary's spouse, or a person who is required to pay a sum 
 to or for the trust beneficiary under the terms of litigation or 
 a litigation settlement; 

    (4) is established to cover reasonable living expenses and 
 other basic needs of the disabilitant, in whole or in part, in 
 instances when public assistance does not provide sufficiently 
 for these needs; 

    (5) is not permitted to make disbursement to replace or 
 reduce public assistance otherwise available; 

    (6) is irrevocable; 

    (7) terminates upon the death of the disabled person for 
 whose benefit it was established; and 

    (8) is determined by the executive director to be a trust 
 that contains excluded assets for purposes of the qualification 
 for public entitlement benefits under the applicable federal and 
 state laws and regulations. 

    Subd. 3.    Covered retirement plans.  The provisions of 
 this section apply to the following retirement plans: 

    (1) the general state employees retirement plan of the 
 Minnesota state retirement system established under chapter 352; 

    (2) the correctional state employees retirement plan of the 
 Minnesota state retirement system established under chapter 352; 

    (3) the state patrol retirement plan established under 
 chapter 352B; 

    (4) the legislators retirement plan established under 
 chapter 3A; 

    (5) the judges retirement plan established under chapter 
 490; 

    (6) the general employees retirement plan of the public 
 employees retirement association established under chapter 353; 

    (7) the public employees police and fire plan of the public 
 employees retirement association established under chapter 353; 

    (8) the teachers retirement plan established under chapter 
 354; 

    (9) the Duluth teachers retirement fund association 
 established under chapter 354A; 

    (10) the St. Paul teachers retirement fund association 
 established under chapter 354A; 

    (11) the Minneapolis teachers retirement fund association 
 established under chapter 354A; 

    (12) the Minneapolis employees retirement plan established 
 under chapter 422A; 

    (13) the Minneapolis firefighters relief association 
 established under chapter 423C; 

    (14) the Minneapolis police relief association established 
 under chapter 423B; and 

    (15) the local government correctional service retirement 
 plan of the public employees retirement association established 
 under chapter 353E. 

    HIST: 2002 c 392 art 11 s 36 

     356.47 Disposition of amount in excess of reemployed 
  annuitant earnings limitations. 

    Subdivision 1.    Application.  This section applies to 
 the balance of annual retirement annuities on the amount of 
 retirement annuity reductions after reemployed annuitant 
 earnings limitations for retirement plans governed by section 
 352.115, subdivision 10; 353.37; 354.44, subdivision 5; or 
 354A.31, subdivision 3. 

    Subd. 2.    Record keeping; reporting.  The chief 
 administrative officer of each retirement plan shall keep 
 records for each reemployed annuitant of the amount of the 
 annuity reduction.  This amount must be reported to each member 
 at least once each year. 

    Subd. 3.    Payment.  (a) Upon the retired member 
 attaining the age of 65 years or upon the first day of the month 
 next following the month occurring one year after the 
 termination of the reemployment that gave rise to the 
 limitation, whichever is later, and the filing of a written 
 application, the retired member is entitled to the payment, in a 
 lump sum, of the value of the person's amount under subdivision 
 2, plus interest at the compound annual rate of six percent from 
 the date that the amount was deducted from the retirement 
 annuity to the date of payment. 

    (b) The written application must be on a form prescribed by 
 the chief administrative officer of the applicable retirement 
 plan. 

    (c) If the retired member dies before the payment provided 
 for in paragraph (a) is made, the amount is payable, upon 
 written application, to the deceased person's surviving spouse, 
 or if none, to the deceased person's designated beneficiary, or 
 if none, to the deceased person's estate. 

    HIST: 2002 c 392 art 11 s 37 

     356.49 Provision of information in event of marriage 
  dissolution. 

    Subdivision 1.    Information for a pending marriage 
 dissolution.  (a) Upon receipt of a written request by a 
 person with access to the data under subdivision 3 who cites 
 this statute, a public or private pension plan administrator 
 must provide the court and the parties to a marriage dissolution 
 action involving a plan member or former plan member with 
 information regarding pension benefits or rights of the plan 
 member or former plan member.  The pension plan shall provide 
 this information upon the request of the court or a party to the 
 action without requiring a signed authorization from the plan 
 member or former plan member. 

    (b) The information must include the pension benefits or 
 rights of the plan member or former plan member as of the first 
 day of the month following the date of the request, or as of the 
 end of the previous fiscal year for the plan, and as of the date 
 of valuation of marital assets under section 518.58, if the 
 person requesting the information specifies that date.  The 
 information must include the accrued service credit of the 
 person, the credited salary of the person for the most current 
 five-year period, a summary of the benefit plan, and any other 
 information relevant to the calculation of the present value of 
 the benefits or rights. 

    Subd. 2.    Information for an existing dissolution 
 decree.  If a marriage dissolution decree rendered by a court 
 of competent jurisdiction prior to August 1, 1987, provided a 
 procedure for the distribution of future pension plan payments, 
 upon request the applicable pension plan administrator shall 
 provide on a timely basis to the court and the parties to the 
 action, the required information to implement that procedure 
 without requiring a signed authorization from the plan member or 
 former plan member. 

    Subd. 3.    Access to data.  Notwithstanding any 
 provision of chapter 13 to the contrary, an administrator may 
 release private or confidential data on individuals to the 
 court, the parties to a marriage dissolution, their attorneys, 
 and an actuary appointed under section 518.582, to the extent 
 necessary to comply with this section, but only if the 
 administrator has received a copy of the legal petition showing 
 that an action for marriage dissolution has commenced and a copy 
 of the affidavit of service showing that the petition has been 
 served on the responding party to the action. 

    HIST: 2002 c 392 art 11 s 38 

     356.50 Service and salary credit from back pay awards in 
  the event of wrongful discharge. 

    (a) A person who is wrongfully discharged from public 
 employment that gave rise to coverage by a public employee 
 pension plan enumerated in section 356.30, subdivision 3, is 
 entitled to obtain allowable service credit from the applicable 
 public employee pension plan for the applicable period caused by 
 the wrongful discharge.  

    (b) A person is wrongfully discharged for purposes of this 
 section if: 

    (1) the person has been determined by a court of competent 
 jurisdiction or by an arbitrator in binding arbitration, 
 whichever applies, to have been wrongfully discharged from 
 public employment; 

    (2) the person received an award of back pay with respect 
 to that discharge; and 

    (3) the award does not include any amount for any lost or 
 interrupted public pension plan coverage. 

    (c) To obtain the public pension plan allowable service 
 credit, the person shall pay the required member contribution 
 amount.  The required member contribution amount is the member 
 contribution rate or rates in effect for the pension plan during 
 the period of service covered by the back pay award, applied to 
 the unpaid gross salary amounts of the back pay award including 
 reemployment insurance, workers' compensation or wages from 
 other sources which reduced the back award.  No contributions 
 shall be made under this clause for compensation covered by a 
 public pension plan listed in section 356.30, subdivision 3, for 
 employment during the removal period.  The person shall pay the 
 required member contribution amount within 60 days of the date 
 of receipt of the back pay award, within 60 days of April 14, 
 1992, or within 60 days of a billing from the retirement fund, 
 whichever is later. 

    (d) The public employer who wrongfully discharged the 
 public employee must pay an employer contribution on the back 
 pay award.  The employer contribution must be based on the 
 employer contribution rate or rates in effect for the pension 
 plan during the period of service covered by the back pay award, 
 applied to the salary amount on which the member contribution 
 amount was determined under paragraph (c).  Interest on both the 
 required member and employer contribution amount must be paid by 
 the employer at the annual compound rate of 8.5 percent per 
 year, expressed monthly, between the date the contribution 
 amount would have been paid to the date of actual payment.  The 
 employer payment must be made within 30 days of the payment 
 under paragraph (c). 

    HIST: 1992 c 443 s 1; 1994 c 488 s 8; 2002 c 392 art 11 s 39 

     356.55 Prior service credit purchase payment amount 
  determination procedure. 

    Subdivision 1.    Application.  (a) Unless the prior 
 service credit purchase authorization special law or general 
 statute provision explicitly specifies a different purchase 
 payment amount determination procedure, this section governs the 
 determination of the prior service credit purchase payment 
 amount of any prior service credit purchase.  

    (b) The purchase payment amount determination procedure 
 must recognize any service credit accrued to the purchaser in a 
 pension plan enumerated in section 356.30, subdivision 3. 

    (c) Any service credit in a Minnesota defined benefit 
 public employee pension plan available to be reinstated by the 
 purchaser through the repayment of a refund of member or 
 employee contributions previously received must be repaid in 
 full before any purchase of prior service credit payment is made 
 under this section. 

    Subd. 2.    Determination.  (a) Unless the prior service 
 credit purchase minimum purchase payment amount determined under 
 paragraph (d) is greater, the prior service credit purchase 
 amount is the result obtained by subtracting the amount 
 determined under paragraph (c) from the amount determined under 
 paragraph (b). 

    (b) The present value of the unreduced single life 
 retirement annuity, with the purchase of the additional service 
 credit included, must be calculated as follows: 

    (1) the age at first eligibility for an unreduced single 
 life retirement annuity, including the purchase of the 
 additional service credit, must be determined; 

    (2) the length of total service credit, including the 
 period of the purchase of the additional service credit, at the 
 age determined under clause (1) must be determined; 

    (3) the highest five successive years average salary at the 
 age determined under clause (1), assuming five percent annual 
 compounding salary increases from the most current annual salary 
 amount at the age determined under clause (1), must be 
 determined; 

    (4) using the benefit accrual rate or rates applicable to 
 the prospective purchaser of the service credit based on the 
 prospective purchaser's actual date of entry into covered 
 service, the length of service determined under clause (2), and 
 the final average salary determined under clause (3), the annual 
 unreduced single life retirement annuity amount must be 
 determined; 

    (5) the actuarial present value of the projected annual 
 unreduced single life retirement annuity amount determined under 
 clause (4) at the age determined under clause (1), using the 
 same actuarial factor that the plan would use to determine 
 actuarial equivalence for optional annuity forms and related 
 purposes, must be determined; and 

    (6) the discounted value of the amount determined under 
 clause (5) to the date of the prospective purchase, using an 
 interest rate of 8.5 percent and no mortality probability 
 decrement, must be determined. 

    (c) The present value of the unreduced single life 
 retirement annuity, without the purchase of the additional 
 service credit included, must be calculated as follows:  

    (1) the age at first eligibility for an unreduced single 
 life retirement annuity, not including the purchase of 
 additional service credit, must be determined; 

    (2) the length of accrued service credit, without the 
 period of the purchase of the additional service credit, at the 
 age determined under clause (1), must be determined; 

    (3) the highest five successive years average salary at the 
 age determined under clause (1), assuming five percent annual 
 compounding salary increases from the most current annual salary 
 amount to the age determined under clause (1), must be 
 determined; 

    (4) using the benefit accrual rate or rates applicable to 
 the prospective purchaser of the service credit based on the 
 prospective purchaser's actual date of entry into covered 
 service the length of service credit determined under clause 
 (2), and the final average salary determined under clause (3), 
 the annual unreduced single life retirement annuity amount must 
 be determined; 

    (5) the actuarial present value of the projected annual 
 unreduced single life retirement annuity amount determined under 
 clause (4) at the age determined under clause (1), using the 
 same actuarial factor that the plan would use to determine 
 actuarial equivalence for optional annuity forms and related 
 purposes, must be determined; 

    (6) the discounted value of the amount determined under 
 clause (5) to the date of the prospective purchase, using an 
 interest rate of 8.5 percent and no mortality probability 
 decrement, must be determined; and 

    (7) the net value of the discounted value determined under 
 clause (6), must be determined by applying a service ratio, 
 where the numerator is the total length of credited service 
 determined under paragraph (b), clause (2), reduced by the 
 period of the additional service credit proposed to be 
 purchased, and where the denominator is the total length of 
 service credit determined under clause (2). 

    (d) The minimum prior service credit purchase payment 
 amount is the amount determined by multiplying the most current 
 annual salary of the prospective purchaser by the combined 
 current employee, employer, and any additional employer 
 contribution rates for the applicable pension plan and by 
 multiplying that result by the number of years of service or 
 fractions of years of service of the potential service credit 
 purchase. 

    Subd. 3.    Source of determination.  The prior service 
 credit purchase payment amounts under subdivision 2 must be 
 calculated by the chief administrative officer of the public 
 pension plan using a prior service credit purchase payment 
 amount determination process that has been verified for accuracy 
 and consistency under this section by the commission-retained 
 actuary.  That verification must be in writing and must occur 
 before the first prior service credit purchase for the plan 
 under this section is accepted and every five years thereafter 
 or whenever the preretirement interest rate, postretirement 
 interest rate, payroll growth, or mortality actuarial assumption 
 for the applicable pension plan is modified under section 
 356.215, whichever occurs first. 

    Subd. 4.    Prior service credit purchase processing fee. 
  A public pension plan may establish a fee to be charged to 
 the prospective purchaser for processing a prior service credit 
 purchase application and the prior service credit purchase 
 payment amount calculation.  The fee must be established by the 
 governing board of the pension plan and must be uniform for 
 comparable service credit purchase situations or actuarial 
 calculation requests.  The prior service credit purchase 
 processing fee structure must be published by the chief 
 administrative officer of the applicable retirement plan in the 
 State Register. 

    Subd. 5.    Payment responsibility; employer option.  
 Unless the prior service credit purchase authorization special 
 law or general statute provision explicitly specifies otherwise, 
 the prior service credit purchase payment amount determined 
 under subdivision 2 is payable by the purchaser.  However, the 
 former employer of the purchaser or the current employer of the 
 purchaser may, at its discretion, pay all or a portion of the 
 purchase payment amount in excess of an amount equal to the 
 employee contribution rate or rates in effect during the prior 
 service period applied to the actual salary rates in effect 
 during the prior service period, plus annual compound interest 
 at the rate of 8.5 percent from the date on which the 
 contributions would have been made if made contemporaneous with 
 the service period to the date on which the payment is actually 
 made. 

    Subd. 6.    Report on prior service credit purchases.  
 (a) As part of the regular data reporting provided to the 
 consulting actuary retained by the legislative commission on 
 pensions and retirement annually, the chief administrative 
 officer of each public pension plan that has accepted a prior 
 service credit purchase payment under this section shall report 
 for any purchase, the purchaser, the purchaser's employer, the 
 age of the purchaser, the period of the purchase, the 
 purchaser's prepurchase accrued service credit, the purchaser's 
 postpurchase accrued service credit, the purchaser's prior 
 service credit payment, the prior service credit payment made by 
 the purchaser's employer, and the amount of the additional 
 benefit or annuity purchased. 

    (b) As a supplemental report to the regular annual 
 actuarial valuation for the applicable public pension plan 
 prepared by the consulting actuary retained by the legislative 
 commission on pensions and retirement, the actuary shall provide 
 a comparison for each purchase showing the total prior service 
 credit payment received from all sources and the increased 
 public pension plan actuarial accrued liability resulting from 
 each purchase. 

    Subd. 7.    Expiration of purchase payment determination 
 procedure.  (a) This section expires and is repealed on July 
 1, 2003. 

    (b) Authority for any public pension plan to accept a prior 
 service credit payment that is calculated in a timely fashion 
 under this section expires on October 1, 2003. 

    HIST: 1998 c 390 art 4 s 1; 1999 c 222 art 16 s 14,15; 1Sp2001 
 c 10 art 6 s 16; 2002 c 392 art 11 s 40 

*   NOTE:  The amendment to subdivision 7 by Laws 2001, First 
*Special Session chapter 10, article 6, section 16, expires May 
*16, 2003.  Laws 2001, First Special Session chapter 10, article 
*6, section 21.

     356.551 Post July 1, 2003, prior service credit purchase 
  payment amount determination procedure. 

    Subdivision 1.    Application.  Unless the prior service 
 credit purchase authorization special law or general statute 
 provision explicitly specifies a different purchase payment 
 amount determination procedure, and if section 356.55 has 
 expired, this section governs the determination of the prior 
 service credit purchase payment amount of any prior service 
 credit purchase. 

    Subd. 2.    Determination.  The prior service credit 
 purchase amount is an amount equal to the actuarial present 
 value, on the date of payment, as calculated by the chief 
 administrative officer of the pension plan and reviewed by the 
 actuary retained by the legislative commission on pensions and 
 retirement, of the amount of the additional retirement annuity 
 obtained by the acquisition of the additional service credit in 
 this section.  Calculation of this amount must be made using the 
 preretirement interest rate applicable to the public pension 
 plan specified in section 356.215, subdivision 4d, and the 
 mortality table adopted for the public pension plan.  The 
 calculation must assume continuous future service in the public 
 pension plan until, and retirement at, the age at which the 
 minimum requirements of the fund for normal retirement or 
 retirement with an annuity unreduced for retirement at an early 
 age, including section 356.30, are met with the additional 
 service credit purchased.  The calculation must also assume a 
 full-time equivalent salary, or actual salary, whichever is 
 greater, and a future salary history that includes annual salary 
 increases at the applicable salary increase rate for the plan 
 specified in section 356.215, subdivision 4d.  Payment must be 
 made in one lump sum within one year of the prior service credit 
 authorization.  Payment of the amount calculated under this 
 section must be made by the applicable eligible person.  
 However, the current employer or the prior employer may, at its 
 discretion, pay all or any portion of the payment amount that 
 exceeds an amount equal to the employee contribution rates in 
 effect during the period or periods of prior service applied to 
 the actual salary rates in effect during the period or periods 
 of prior service, plus interest at the rate of 8.5 percent a 
 year compounded annually from the date on which the 
 contributions would otherwise have been made to the date on 
 which the payment is made.  If the employer agrees to payments 
 under this subdivision, the purchaser must make the employee 
 payments required under this subdivision within 290 days of the 
 prior service credit authorization.  If that employee payment is 
 made, the employer payment under this subdivision must be 
 remitted to the chief administrative officer of the public 
 pension plan within 60 days of receipt by the chief 
 administrative officer of the employee payments specified under 
 this subdivision. 

    Subd. 3.    Documentation.  The prospective purchaser 
 must provide any relevant documentation required by the chief 
 administrative officer of the public pension plan to determine 
 eligibility for the prior service credit under this section. 

    Subd. 4.    Payment precondition for credit grant.  
 Service credit for the purchase period must be granted by the 
 public pension plan to the purchaser upon receipt of the 
 purchase payment amount specified in subdivision 2. 

    HIST: 1998 c 390 art 4 s 2; 2002 c 392 art 11 s 41 

     356.555 Parental or family leave service credit purchase.

    Subdivision 1.    Service credit purchase authorization. 
  (a) Notwithstanding any provision to the contrary of the laws 
 governing a covered pension plan enumerated in subdivision 4, a 
 member of the pension plan who has at least three years of 
 allowable service covered by the applicable pension plan and who 
 was granted by the employer a parental leave of absence as 
 defined in paragraph (b), or who was granted by the employer a 
 family leave of absence as defined in paragraph (c), or who had 
 a parental or family-related break in employment, as defined in 
 paragraph (d), for which the person did not previously receive 
 service credit or for which the person did not receive or 
 purchase service credit from another defined benefit public 
 employee pension plan, is entitled to purchase the actual period 
 of the leave or of the break in service, up to five years, of 
 allowable service credit in the applicable retirement plan.  The 
 purchase payment amount is governed by section 356.55. 

    (b) For purposes of this section, a parental leave of 
 absence is a temporary period of interruption of or separation 
 from active employment for the purposes of handling maternity or 
 paternity duties that has been approved by the employing unit 
 and that includes the right of reinstatement to employment. 

    (c) For purposes of this section, a family leave of absence 
 is a family leave under United States Code, title 42, section 
 12631, as amended. 

    (d) For purposes of this section, a parental or 
 family-related break in employment is a period following a 
 termination of active employment primarily for the purpose of 
 the birth of a child, the adoption of a child, or the provision 
 of care to a near relative or in-law, after which the person 
 returned to the prior employing unit or to an employing unit 
 covered by the same pension plan that provided retirement 
 coverage immediately prior to the termination of employment. 

    Subd. 2.    Application and documentation.  (a) A person 
 who desires to purchase service credit under subdivision 1 must 
 apply for the service credit purchase with the chief 
 administrative officer of the enumerated pension plan.  

    (b) The application must include all necessary 
 documentation of the qualifications of the person to make the 
 purchase, signed written permission to allow the chief 
 administrative officer to request and receive necessary 
 verification of all applicable facts and eligibility 
 requirements, and any other relevant information that the chief 
 administrative officer may require. 

    Subd. 3.    Service credit grant.  Allowable and formula 
 service credit in the applicable enumerated pension plan for the 
 purchase period must be granted to the purchaser upon receipt of 
 the purchase payment amount calculated under section 356.55.  
 Payment of the purchase amount must be made before the person 
 retires. 

    Subd. 4.    Covered pension plans.  This section applies 
 to the following pension plans: 

    (1) the general state employees retirement plan governed by 
 chapter 352; 

    (2) the correctional state employees retirement plan 
 governed by chapter 352; 

    (3) the general employees retirement plan of the public 
 employees retirement association governed by chapter 353; 

    (4) the public employees police and fire plan governed by 
 chapter 353; 

    (5) the teachers retirement plan governed by chapter 354; 

    (6) the Minneapolis teachers retirement fund association 
 governed by chapter 354A; 

    (7) the Saint Paul teachers retirement fund association 
 governed by chapter 354A; 

    (8) the Duluth teachers retirement fund association 
 governed by chapter 354A; 

    (9) the Minneapolis employees retirement plan governed by 
 chapter 422A; 

    (10) the Minneapolis police relief association governed by 
 chapter 423B; and 

    (11) the Minneapolis fire department relief association 
 governed by chapter 423C. 

    HIST: 1Sp2001 c 10 art 6 s 17; 2002 c 392 art 11 s 42 

*   NOTE:  This section, as added by Laws 2001, First Special 
*Session chapter 10, article 6, section 17, expires May 16, 
*2003.  Laws 2001, First Special Session chapter 10, article 6, 
*section 21.

     356.58 Disposition of amount in excess of reemployed 
  annuitant earnings limitations. 

    Subdivision 1.    Application.  This section applies to 
 the balance of annual retirement annuities on the amount of 
 retirement annuity reductions after reemployed annuitant 
 earnings limitations for retirement plans governed by section 
 352.115, subdivision 10; 353.37; 354.44, subdivision 5; or 
 354A.31, subdivision 3. 

    Subd. 2.    Record keeping; reporting.  The chief 
 administrative officer of each retirement plan shall keep 
 records for each reemployed annuitant of the amount of the 
 annuity reduction.  This amount must be reported to each member 
 at least once each year. 

    Subd. 3.    Payment.  (a) Upon the retired member 
 attaining the age of 65 years or upon the first day of the month 
 next following the month occurring one year after the 
 termination of the reemployment that gave rise to the 
 limitation, whichever is later, and the filing of a written 
 application, the retired member is entitled the payment, in a 
 lump sum, of the value of the person's amount under subdivision 
 2, plus interest at the compound annual rate of six percent from 
 the date that the amount was deducted from the retirement 
 annuity to the date of payment. 

    (b) The written application must be on a form prescribed by 
 the chief administrative officer of the applicable retirement 
 plan. 

    (c) If the retired member dies before the payment provided 
 for in paragraph (a) is made, the amount is payable, upon 
 written application, to the deceased person's surviving spouse, 
 or if none, to the deceased person's designated beneficiary, or 
 if none, to the deceased person's estate. 

    HIST: 2000 c 461 art 2 s 10 

  356.60 Repealed, 1982 c 578 art 1 s 19 

  356.61 Repealed, 2000 c 461 art 14 s 1 

     356.611 Limitation on public employee salaries for 
  pension purposes. 

    Subdivision 1.    State salary limitations.  (a) 
 Notwithstanding any provision of law, bylaws, articles of 
 incorporation, retirement and disability allowance plan 
 agreements, or retirement plan contracts to the contrary, the 
 covered salary for pension purposes for a plan participant of a 
 covered retirement fund enumerated in section 356.30, 
 subdivision 3, may not exceed 95 percent of the salary 
 established for the governor under section 15A.082 at the time 
 the person received the salary. 

    (b) This section does not apply to a salary paid: 

    (1) to the governor; 

    (2) to an employee of a political subdivision in a position 
 that is excluded from the limit as specified under section 
 43A.17, subdivision 9; or 

    (3) to a state employee in a position for which the 
 commissioner of employee relations has approved a salary rate 
 that exceeds 95 percent of the governor's salary. 

    (c) The limited covered salary determined under this 
 section must be used in determining employee and employer 
 contributions and in determining retirement annuities and other 
 benefits under the respective covered retirement fund and under 
 this chapter. 

    Subd. 2.    Federal compensation limits.  For members 
 first contributing to a covered pension plan enumerated in 
 section 356.30, subdivision 3, on or after July 1, 1995, 
 compensation in excess of the limitation set forth in Internal 
 Revenue Code 401(a)(17) may not be included for contribution and 
 benefit computation purposes.  The compensation limit set forth 
 in Internal Revenue Code 401(a)(17) on June 30, 1993, applies to 
 members first contributing before July 1, 1995. 

    HIST: 1994 c 528 art 4 s 11; 1995 c 262 art 1 s 15; 2002 c 392 
 art 11 s 43 

  356.615 Repealed, 2002 c 392 art 11 s 53 

     356.62 Payment of employee contribution. 

    (a) For purposes of any public pension plan, as defined in 
 section 356.615, paragraph (b), each employer shall pick up the 
 employee contributions required pursuant to law or the pension 
 plan for all salary payable after December 31, 1982.  If the 
 United States Treasury department rules that under section 
 414(h) of the Internal Revenue Code of 1986, as amended through 
 December 31, 1992, that these picked up contributions are not 
 includable in the employee's adjusted gross income until they 
 are distributed or made available, then these picked up 
 contributions must be treated as employer contributions in 
 determining tax treatment under the Internal Revenue Code of 
 1986, as amended through December 31, 1992, and the employer 
 shall discontinue withholding federal income taxes on the amount 
 of these contributions.  The employer shall pay these picked up 
 contributions from the same source of funds as is used to pay 
 the salary of the employee.  The employer shall pick up these 
 employee contributions by a reduction in the cash salary of the 
 employee. 

    (b) Employee contributions that are picked up must be 
 treated for all purposes of the public pension plan in the same 
 manner and to the same extent as employee contributions that 
 were made prior to the date on which the employee contributions 
 pick up began.  The amount of the employee contributions that 
 are picked up must be included in the salary upon which 
 retirement coverage is credited and retirement and survivor's 
 benefits are determined.  For purposes of this section, 
 "employee" means any person covered by a public pension plan.  
 For purposes of this section, "employee contributions" include 
 any sums deducted from the employee's salary or wages or 
 otherwise paid in lieu thereof, regardless of whether they are 
 denominated contributions by the public pension plan. 

    (c) For any calendar year in which withholding has been 
 reduced under this section, the employing unit shall supply each 
 employee and the commissioner of revenue with an information 
 return indicating the amount of the employer's picked-up 
 contributions for the calendar year that were not subject to 
 withholding.  This return must be provided to the employee not 
 later than January 31 of the succeeding calendar year.  The 
 commissioner of revenue shall prescribe the form of the return 
 and the provisions of section 289A.12 must apply to the extent 
 not inconsistent with the provisions of this section. 

    HIST: 3Sp1982 c 1 art 2 s 7; 1983 c 148 s 6; 1983 c 216 art 1 
 s 85; 1990 c 480 art 1 s 46; 1993 c 375 art 8 s 14; 2001 c 7 s 
 66; 2002 c 379 art 1 s 78; 2002 c 392 art 11 s 44 

     356.63 Limitation on use of public pension plan assets. 

    (a) Money held by or credited to a public pension plan as 
 assets, including employer and employee contributions, state 
 aid, appropriations from the state or a governmental 
 subdivision, and accrued earnings on investments, constitutes a 
 dedicated fund.  The dedicated fund may be used exclusively to 
 pay retirement annuities, service pensions, disability benefits, 
 survivor benefits, refunds of contributions, or other benefits 
 provided under the benefit plan document or documents governing 
 the public pension plan, and to pay reasonable administrative 
 expenses approved by the governing board of the public pension 
 plan or by another appropriate authority.  No assets of a public 
 pension plan may be loaned or transferred to the state or a 
 governmental subdivision or be used to amortize an unfunded 
 actuarial accrued liability in another public pension plan or 
 fund, whether or not the plan providing the assets consolidates 
 or has consolidated with the plan receiving the assets.  Nothing 
 in this section prohibits a public pension plan or the state 
 board of investment from investing the assets of a plan as 
 authorized by law, including the investment of the assets of 
 public pension plans by the state board of investment in a 
 commingled investment fund. 

    (b) A public pension plan for purposes of this section 
 means a pension plan or fund specified in section 356.20, 
 subdivision 2, or 356.30, subdivision 3, or a retirement or 
 pension plan or fund, including a supplemental retirement plan 
 or fund, established, maintained, or supported by a governmental 
 subdivision or public body whose revenues are derived from 
 taxation, fees, assessments, or other public sources. 

    HIST: 2002 c 392 art 11 s 45 

     356.64 Real estate investments. 

    (a) Notwithstanding any law to the contrary, any public 
 pension plan whose assets are not invested by the state board of 
 investment may invest its funds in Minnesota situs nonfarm real 
 estate ownership interests or loans secured by mortgages or 
 deeds of trust if the investment is consistent with section 
 356A.04. 

    (b) Except to the extent authorized in the case of the 
 Minneapolis employees retirement fund under section 422A.05, 
 subdivision 2c, paragraph (a), an investment otherwise 
 authorized by this section must also comply with the 
 requirements and limitations of section 11A.24, subdivision 6. 

    HIST: 2002 c 392 art 11 s 46 

     356.65 Disposition of abandoned public pension fund 
  amounts. 

    Subdivision 1.    Definitions.  For purposes of this 
 section, unless the context clearly indicates otherwise, each of 
 the following terms has the meaning given to it:  

    (a) "Public pension fund" means any public pension plan as 
 defined in section 356.63, paragraph (b), and any Minnesota 
 volunteer firefighters relief association which is established 
 under chapter 424A and governed under sections 69.771 to 69.776. 

    (b) "Unclaimed public pension fund amounts" means any 
 amounts representing accumulated member contributions, any 
 outstanding unpaid annuity, service pension or other retirement 
 benefit payments, including those made on warrants issued by the 
 commissioner of finance, which have been issued and delivered 
 for more than six months prior to the date of the end of the 
 fiscal year applicable to the public pension fund, and any 
 applicable interest to the credit of:  

    (1) an inactive or former member of a public pension fund 
 who is not entitled to a defined retirement annuity and who has 
 not applied for a refund of those amounts within five years 
 after the last member contribution was made; or 

    (2) a deceased inactive or former member of a public 
 pension fund if no survivor is entitled to a survivor benefit 
 and no survivor, designated beneficiary or legal representative 
 of the estate has applied for a refund of those amounts within 
 five years after the date of death of the inactive or former 
 member. 

    Subd. 2.    Disposition of abandoned amounts.  Any 
 unclaimed public pension fund amounts existing in any public 
 pension fund are presumed to be abandoned, but are not subject 
 to the provisions of sections 345.31 to 345.60.  Unless the 
 benefit plan of the public pension fund specifically provides 
 for a different disposition of unclaimed or abandoned funds or 
 amounts, any unclaimed public pension fund amounts cancel and 
 must be credited to the public pension fund.  If the unclaimed 
 public pension fund amount exceeds $25 and the inactive or 
 former member again becomes a member of the applicable public 
 pension plan or applies for a retirement annuity under section 
 3A.12, 352.72, 352B.30, 352C.051, 353.71, 354.60, 356.30, or 
 422A.16, subdivision 8, whichever applies, the canceled amount 
 must be restored to the credit of the person.  

    HIST: 1981 c 224 s 178; 1983 c 286 s 17; 1992 c 513 art 4 s 
 41; 2001 c 7 s 67; 2002 c 392 art 11 s 47,48 

  356.70 Repealed, 1997 c 233 art 1 s 78 

  356.71 Repealed, 2002 c 392 art 11 s 53 

  356.80 Repealed, 2002 c 392 art 11 s 53 

  356.81 Repealed, 2002 c 392 art 11 s 53 

     356.82 Savings clause. 

    The intent of the legislature in sections 352.01, 
 subdivision 25; 353.01, subdivision 37; 354.05, subdivision 38; 
 and 354A.011, subdivision 15a is to create a normal retirement 
 age for persons first covered by those sections after the 
 effective date of those sections that is the same as the 
 retirement age in the federal Social Security law, including 
 future amendments to that law.  If a court determines that the 
 legislature may not incorporate by reference the future changes 
 in federal Social Security law, the legislature reserves the 
 right to amend the appropriate sections to make the normal 
 retirement conform to the retirement age in the federal Social 
 Security law.  No person first covered by any of those sections 
 after the effective date of those sections has a right to a 
 normal retirement age that is less than the retirement age in 
 the federal Social Security law. 

    HIST: 1989 c 319 art 13 s 95; 1992 c 464 art 1 s 43 

  356.85 Repealed, 1993 c 280 s 1 

  356.86 Repealed, 2002 c 392 art 11 s 53 

  356.865 Repealed, 2002 c 392 art 11 s 53 

  356.866 Repealed, 2002 c 392 art 11 s 53 

     356.87 Health insurance withholding. 

    (a) Upon authorization of a person entitled to receive a 
 retirement annuity, disability benefit or survivor benefit, the 
 executive director of a public pension fund enumerated in 
 section 356.20, subdivision 2, shall withhold health insurance 
 premium amounts from the retirement annuity, disability benefit 
 or survivor benefit, and shall pay the premium amounts to the 
 public employees insurance program.  

    (b) The public employees insurance program shall reimburse 
 a public pension fund for the administrative expense of 
 withholding the premium amounts and shall assume liability for 
 the failure of a public pension fund to properly withhold the 
 premium amounts. 

    HIST: 1990 c 589 art 2 s 2; 1991 c 340 s 32; 1991 c 341 s 47; 
 1994 c 465 art 3 s 55; 1995 c 248 art 10 s 17; 2002 c 392 art 11 
 s 49 

  356.88 Repealed, 2002 c 392 art 11 s 53 

  356.89 Repealed, 2002 c 392 art 11 s 53 

*   NOTE:  Subdivision 3 was also amended by Laws 2002, chapter 
*392, article 12, section 1, to read as follows: 

*   "Subd. 3.    Contracting procedures.  (a) The 
*commissioner may enter into a contract for facilities with a 
*contractor to furnish the architectural, engineering, and 
*related services as well as the labor, materials, supplies, 
*equipment, and related construction services on the basis of a 
*request for qualifications and competitive responses received 
*through a request for proposals process that must include the 
*items listed in paragraphs (b) to (i). 

*   (b) Before issuing a request for qualifications and a 
*request for proposals, the commissioner, with the assistance of 
*the boards, shall prepare performance criteria and 
*specifications that include: 

*   (1) a general floor plan or layout indicating the general 
*dimensions of the public building and space requirements; 

*   (2) design criteria for the exterior and site area; 

*   (3) performance specifications for all building systems and 
*components to ensure quality and cost efficiencies; 

*   (4) conceptual floor plans for systems space; 

*   (5) preferred types of interior finishes, styles of 
*windows, lighting and outlets, doors, and features such as 
*built-in counters and telephone wiring; 

*   (6) mechanical and electrical requirements; 

*   (7) special interior features required; and 

*   (8) a completion schedule. 

*   (c) The commissioner shall first solicit statements of 
*qualifications from eligible contractors and select more than 
*one qualified contractor based upon experience, technical 
*competence, past performance, capability to perform, and other 
*appropriate facts.  Contractors selected under this process must 
*be, employ, or have as a partner, member, coventurer, or 
*subcontractor, persons licensed and registered under chapter 326 
*to provide the services required to design and complete the 
*project.  The commissioner does not have to select any of the 
*respondents if none reasonably fulfill the criteria set forth in 
*this paragraph. 

*   (d) The contractors selected shall be asked to respond to a 
*request for proposals.  Responses must include site plans, 
*design concept, elevation, statement of material to be used, 
*floor layouts, a detailed development budget, and a total cost 
*to complete the project.  The proposal must indicate that the 
*contractor obtained at least two proposals from subcontractors 
*for each item of work and must set forth how the subcontractors 
*were selected.  The commissioner, with the assistance of the 
*boards, shall evaluate the proposals based upon design, cost, 
*quality, aesthetics, and the best overall value to the state 
*pension funds.  The commissioner need not select any of the 
*proposals submitted and reserves the right to reject any and all 
*proposals, and may terminate the process or revise the request 
*for proposals and solicit new proposals if the commissioner 
*determines that the best interests of the pension funds would be 
*better served by doing so.  Proposals submitted are nonpublic 
*data until the contract is awarded. 

*   (e) The contractor selected must comply with sections 
*574.26 to 574.261.  Before executing a final contract, the 
*contractor selected shall certify a firm construction price and 
*completion date. 

*   (f) The commissioner may consider building sites in the 
*city of St. Paul and surrounding suburbs. 

*   (g) Any land, building, or facility leased, constructed, or 
*acquired and any leasehold interest acquired under this section 
*must be held by the state in trust for the three retirement 
*systems as tenants in common.  Each retirement system fund must 
*consider its interest as a fixed asset of its pension fund in 
*accordance with governmental accounting standards. 

*   (h) The commissioner may lease to another governmental 
*subdivision, or to a private company under contract with the 
*state board of investment or with the board of directors of the 
*Minnesota state retirement system, whichever applies, to provide 
*deferred compensation services under section 352.96, any portion 
*of the funds' building and lands that is not required for their 
*direct use upon terms and conditions they deem to be in the best 
*interest of the pension funds.  Any income accruing from the 
*rentals must be separately accounted for and utilized to offset 
*ongoing administrative expenses and any excess must be carried 
*forward for future administrative expenses.  The commissioner 
*may also enter into lease agreements for the establishment of 
*satellite offices should the boards find them to be necessary in 
*order to assure their members reasonable access to their 
*services.  The commissioner may lease under section 16B.24 any 
*portion of the facilities not required for the direct use of the 
*boards. 

*   (i) The boards shall formulate and adopt a written working 
*agreement that sets forth the nature of each retirement system's 
*ownership interest, the duties and obligations of each system 
*toward the construction, operation, and maintenance costs of its 
*facilities, and identifies one retirement fund to serve as 
*manager for operating and maintenance purposes.  The boards may 
*contract with independent third parties for maintenance-related 
*activities, services, and supplies, and may use the services of 
*the department of administration where economically feasible to 
*do so.  If the boards cannot agree or resolve a dispute about 
*operations or maintenance of the facilities, they may request 
*the commissioner of administration to appoint a representative 
*from the department's real estate management division to serve 
*as arbitrator of the dispute with authority to issue a written 
*resolution of the dispute."

     356.90 Combined payment. 

    (a) The public employees retirement association and the 
 Minnesota state retirement system are permitted to combine 
 payments to retirees.  The total payment must be equal to the 
 amount that is payable if payments were kept separate.  The 
 retiree must agree, in writing, to have the payment combined. 

    (b) Each plan must calculate the benefit amounts under the 
 laws governing the plan and the required reserves and future 
 mortality losses or gains must be paid or accrued to the plan 
 from which the service was earned.  Each plan must account for 
 their portion of the payment separately, and there may be no 
 additional liabilities realized by either fund. 

    (c) The fund making payment would be responsible for 
 issuing one payment, making address changes, tax withholding 
 changes, and other administrative functions needed to process 
 the payment. 

    HIST: 2000 c 461 art 3 s 45