2006 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.
History: 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]

356.195 SERVICE CREDIT PURCHASE PROCEDURES FOR STRIKE PERIODS.
    Subdivision 1. Covered plans. This section applies to all defined benefit plans specified in
section 356.30, subdivision 3.
    Subd. 2. Purchase procedure for strike periods. (a) An employee covered by a plan
specified in subdivision 1 may purchase allowable service credit in the applicable plan for any
period of time during which the employee was on a public employee strike without pay, not to
exceed a period of one year, if the employee makes a payment in lieu of salary deductions as
specified in paragraph (b) or (c), whichever applies. The employing unit, at its option, may pay
the employer portion of the amount specified in paragraph (b) on behalf of its employees.
(b) If payment is received by the applicable pension plan executive director within one year
from the end of the strike, the payment amount is equal to the applicable employee and employer
contribution rates specified in law for the applicable plan during the strike period, applied to the
employee's rate of salary in effect at the conclusion of the strike for the period of the strike
without pay, plus compound interest at a monthly rate of 0.71 percent from the last day of the
strike period until the date payment is received.
(c) If payment is received by the applicable pension fund director after one year and before
five years from the end of the strike, the payment amount is the amount determined under
section 356.551.
(d) Payments may not be made more than five years after the end of the strike.
History: 1Sp2005 c 8 art 2 s 1

PUBLIC PENSION PLAN ACTUARIAL, FINANCIAL,

AND INVESTMENT REPORTING

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 St. Paul Teachers Retirement Fund Association;
(6) the Duluth Teachers Retirement Fund Association;
(7) the Minneapolis Employees Retirement Fund;
(8) the University of Minnesota faculty retirement plan;
(9) the University of Minnesota faculty supplemental retirement plan;
(10) the judges retirement fund;
(11) a police or firefighter's relief association specified or described in section 69.77,
subdivision 1a , or 69.771, subdivision 1;
(12) the public employees police and fire plan of the Public Employees Retirement
Association;
(13) the correctional state employees retirement plan of the Minnesota State Retirement
System; and
(14) 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 under section 356.214, 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 its footnotes, an actuarial disclosure item based on the actuarial
valuation calculations prepared by the actuary retained under section 356.214 or by the actuary
retained by the retirement fund or plan, whichever applies, 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 under section 356.214 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 in accordance 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 at cost		Value 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
	Participation in the Minnesota
		postretirement investment
		fund or the retirement
		benefit fund
	Other

	Total assets
		Value at cost
		Value at market
		Actuarial 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
actuarial value of current assets:
(1) the 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) the 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) The report must contain an itemized exhibit describing the administrative expenses of the
plan, including, but not limited to, the following items, classified on a consistent basis from year
to year, and with any further meaningful detail:
(1) personnel expenses;
(2) communication-related expenses;
(3) office building and maintenance expenses;
(4) professional services fees; and
(5) other expenses.
(f) The report must contain an itemized exhibit describing the investment expenses of the
plan, including, but not limited to, the following items, classified on a consistent basis from year
to year, and with any further meaningful detail:
(1) internal investment-related expenses; and
(2) external investment-related expenses.
(g) 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]
History: 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; 1Sp2005 c 8 art 3 s 6; 2006 c 271 art 3 s 47; 2006 c 277 art 3 s 31

356.21 [Repealed, 1975 c 192 s 7]

356.211 [Repealed, 1975 c 192 s 7]

356.212 [Repealed, 1975 c 192 s 7]

356.214 ACTUARIAL VALUATION PREPARATION; JOINT RETENTION OF
CONSULTING ACTUARY.
    Subdivision 1. Joint retention. (a) The chief administrative officers of the Minnesota State
Retirement System, the Public Employees Retirement Association, the Teachers Retirement
Association, the Duluth Teachers Retirement Fund Association, the Minneapolis Employees
Retirement Fund, and the St. Paul Teachers Retirement Fund Association, jointly, on behalf of the
state, its employees, its taxpayers, and its various public pension plans, shall contract with an
established actuarial consulting firm to conduct annual actuarial valuations and related services
for the retirement plans named in paragraph (b). The principal from the actuarial consulting firm
on the contract must be an approved actuary under section 356.215, subdivision 1, paragraph (c).
Prior to becoming effective, the contract under this section is subject to a review and approval
by the Legislative Commission on Pensions and Retirement.
(b) The contract for actuarial services must include the preparation of actuarial valuations
and related actuarial work for the following retirement plans:
(1) the teachers retirement plan, Teachers Retirement Association;
(2) the general state employees retirement plan, Minnesota State Retirement System;
(3) the correctional employees retirement plan, Minnesota State Retirement System;
(4) the State Patrol retirement plan, Minnesota State Retirement System;
(5) the judges retirement plan, Minnesota State Retirement System;
(6) the Minneapolis employees retirement plan, Minneapolis Employees Retirement Fund;
(7) the public employees retirement plan, Public Employees Retirement Association;
(8) the public employees police and fire plan, Public Employees Retirement Association;
(9) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund Association;
(10) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund Association;
(11) the legislators retirement plan, Minnesota State Retirement System;
(12) the elective state officers retirement plan, Minnesota State Retirement System; and
(13) local government correctional service retirement plan, Public Employees Retirement
Association.
(c) The contract must require completion of the annual actuarial valuation calculations on a
fiscal year basis, with the contents of the actuarial valuation calculations as specified in section
356.215, and in conformity with the standards for actuarial work adopted by the Legislative
Commission on Pensions and Retirement.
The contract must require completion of annual experience data collection and processing
and a quadrennial published experience study for the plans listed in paragraph (b), clauses (1),
(2), and (7), as provided for in the standards for actuarial work adopted by the commission. The
experience data collection, processing, and analysis must evaluate the following:
(1) individual salary progression;
(2) the rate of return on investments based on the current asset value;
(3) payroll growth;
(4) mortality;
(5) retirement age;
(6) withdrawal; and
(7) disablement.
The contract must include provisions for the preparation of cost analyses by the jointly
retained actuary for proposed legislation that include changes in benefit provisions or funding
policies prior to their consideration by the Legislative Commission on Pensions and Retirement.
(d) The actuary retained by the joint retirement systems shall annually prepare a report to
the legislature, including a commentary on the actuarial valuation calculations for the plans
named in paragraph (b) and summarizing the results of the actuarial valuation calculations. The
actuary shall include with the report the actuary's recommendations to the legislature concerning
the appropriateness of the support rates to achieve proper funding of the retirement plans by the
required funding dates. The actuary shall, as part of the quadrennial experience study, include
recommendations to the legislature on the appropriateness of the actuarial valuation assumptions
required for evaluation in the study.
(e) If the actuarial gain and loss analysis in the actuarial valuation calculations indicates a
persistent pattern of sizable gains or losses, as directed by the joint retirement systems or as
requested by the chair of the Legislative Commission on Pensions and Retirement, the actuary
shall prepare a special experience study for a plan listed in paragraph (b), clause (3), (4), (5), (6),
(8), (9), (10), (11), (12), or (13), in the manner provided for in the standards for actuarial work
adopted by the commission.
(f) The term of the contract between the joint retirement systems and the actuary retained
may not exceed five years. The joint retirement system administrative officers shall establish
procedures for the consideration and selection of contract bidders and the requirements for the
contents of an actuarial services contract under this section. The procedures and requirements
must be submitted to the Legislative Commission on Pensions and Retirement for review and
comment prior to final approval by the joint administrators. The contract is subject to the
procurement procedures under chapter 16C. The consideration of bids and the selection of a
consulting actuarial firm by the chief administrative officers must occur at a meeting that is
open to the public and reasonable timely public notice of the date and the time of the meeting
and its subject matter must be given.
(g) The actuarial services contract may not limit the ability of the Minnesota legislature and
its standing committees and commissions to rely on the actuarial results of the work prepared
under the contract.
(h) The joint retirement systems shall designate one of the retirement system executive
directors as the actuarial services contract manager.
    Subd. 2. Allocation of actuarial costs. (a) The actuarial services contract manager shall
assess each retirement plan specified in subdivision 1, paragraph (b), its appropriate portion of the
total compensation paid to the actuary retained by the joint retirement systems for the actuarial
valuation calculations and quadrennial experience studies. The total assessment is 100 percent
of the amount of contract compensation for the actuarial consulting firm for actuarial valuation
calculations, including any public employees police and fire plan consolidation accounts of the
Public Employees Retirement Association established after March 1, 1999, annual experience
data collection and processing, and quadrennial experience studies.
The portion of the total assessment payable by each retirement system or pension plan must
be determined based on each plan's proportion of the actuarial services required, as determined
by the retained actuary, to complete the actuarial valuation calculations, annual experience data
collection and processing, and quadrennial experience studies for all plans.
The assessment must be made within 30 days following the end of the fiscal year and must
be reported to the chief administrative officers of the applicable retirement plans. The amount of
the assessment is appropriated from the retirement fund applicable to the retirement plan.
(b) The actuarial services contract manager shall assess each retirement plan or each interest
group which requested the preparation of a cost analysis for proposed legislation the cost of
the actuary retained by the joint retirement systems incurred in the cost analysis preparation.
With respect to interest groups, the actuarial services contract manager shall obtain a written
commitment for the payment of the assessment in advance of the cost analysis preparation
and may require an advance deposit or advance payment before authorizing the cost analysis
preparation. The retirement plan or the interest group shall pay the assessment within 30 days of
the date on which the assessment is billed. The amount of the assessment is appropriated from
the retirement fund applicable to the retirement plan for cost analyses requested by a retirement
plan or system.
(c) The actuarial services contract manager shall assess to the Legislative Commission on
Pensions and Retirement the cost of the actuarial cost analysis preparation for the proposed
legislation requested by the chair of the Legislative Commission on Pensions and Retirement or
by the commission executive director. The commission shall pay the assessment within 30 days
of the date on which the assessment is billed.
    Subd. 3. Reporting to commission. A copy of the actuarial valuations, experience studies,
and actuarial cost analyses prepared by the actuary retained by the joint retirement systems under
the contract provided for in this section must be filed with the executive director of the Legislative
Commission on Pensions and Retirement at the same time that the document is transmitted to the
actuarial services contract manager or to any other document recipient.
History: 2004 c 223 s 6; 2006 c 277 art 3 s 32

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 has the meaning given.
(b) "Actuarial valuation" means a set of calculations prepared by the actuary retained under
section 356.214 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 actuary retained under section 356.214 shall prepare annual actuarial valuations of the
retirement plans enumerated in section 356.214, subdivision 1, paragraph (b), and quadrennial
experience studies of the retirement plans enumerated in section 356.214, subdivision 1,
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 6, subdivision 1, 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 under section 356.214 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 actuary retained under section 356.214 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
	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
	Bloomington Fire Department Relief Association		6.0	6.0
	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
	Bloomington Fire Department Relief Association		4.0

(2) modified single rate future salary increase assumption

			future salary
	plan		increase assumption
	Minneapolis employees retirement plan		the prior calendar year 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 retirement plan	select calculation and assumption A
	correctional state employees retirement plan	assumption G
	State Patrol retirement plan	assumption G
	general public employees retirement plan	select calculation and assumption B
	public employees police and fire fund retirement plan	assumption C
	local government correctional service retirement plan	assumption G
	teachers retirement plan	assumption D
	Duluth teachers retirement plan	assumption E
	St. Paul teachers retirement plan	assumption F

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;
and 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.
    The ultimate future salary increase assumption is:

	age	A	B	C	D	E	F	G
	16	6.95%	6.95%	11.50%	8.20%	8.00%	6.90%	7.7500%
	17	6.90	6.90	11.50	8.15	8.00	6.90	7.7500
	18	6.85	6.85	11.50	8.10	8.00	6.90	7.7500
	19	6.80	6.80	11.50	8.05	8.00	6.90	7.7500
	20	6.75	6.40	11.50	6.00	6.90	6.90	7.7500
	21	6.75	6.40	11.50	6.00	6.90	6.90	7.1454
	22	6.75	6.40	11.00	6.00	6.90	6.90	7.0725
	23	6.75	6.40	10.50	6.00	6.85	6.85	7.0544
	24	6.75	6.40	10.00	6.00	6.80	6.80	7.0363
	25	6.75	6.40	9.50	6.00	6.75	6.75	7.0000
	26	6.75	6.36	9.20	6.00	6.70	6.70	7.0000
	27	6.75	6.32	8.90	6.00	6.65	6.65	7.0000
	28	6.75	6.28	8.60	6.00	6.60	6.60	7.0000
	29	6.75	6.24	8.30	6.00	6.55	6.55	7.0000
	30	6.75	6.20	8.00	6.00	6.50	6.50	7.0000
	31	6.75	6.16	7.80	6.00	6.45	6.45	7.0000
	32	6.75	6.12	7.60	6.00	6.40	6.40	7.0000
	33	6.75	6.08	7.40	6.00	6.35	6.35	7.0000
	34	6.75	6.04	7.20	6.00	6.30	6.30	7.0000
	35	6.75	6.00	7.00	6.00	6.25	6.25	7.0000
	36	6.75	5.96	6.80	6.00	6.20	6.20	6.9019
	37	6.75	5.92	6.60	6.00	6.15	6.15	6.8074
	38	6.75	5.88	6.40	5.90	6.10	6.10	6.7125
	39	6.75	5.84	6.20	5.80	6.05	6.05	6.6054
	40	6.75	5.80	6.00	5.70	6.00	6.00	6.5000
	41	6.75	5.76	5.90	5.60	5.90	5.95	6.3540
	42	6.75	5.72	5.80	5.50	5.80	5.90	6.2087
	43	6.65	5.68	5.70	5.40	5.70	5.85	6.0622
	44	6.55	5.64	5.60	5.30	5.60	5.80	5.9048
	45	6.45	5.60	5.50	5.20	5.50	5.75	5.7500
	46	6.35	5.56	5.45	5.10	5.40	5.70	5.6940
	47	6.25	5.52	5.40	5.00	5.30	5.65	5.6375
	48	6.15	5.48	5.35	5.00	5.20	5.60	5.5822
	49	6.05	5.44	5.30	5.00	5.10	5.55	5.5404
	50	5.95	5.40	5.25	5.00	5.00	5.50	5.5000
	51	5.85	5.36	5.25	5.00	5.00	5.45	5.4384
	52	5.75	5.32	5.25	5.00	5.00	5.40	5.3776
	53	5.65	5.28	5.25	5.00	5.00	5.35	5.3167
	54	5.55	5.24	5.25	5.00	5.00	5.30	5.2826
	55	5.45	5.20	5.25	5.00	5.00	5.25	5.2500
	56	5.35	5.16	5.25	5.00	5.00	5.20	5.2500
	57	5.25	5.12	5.25	5.00	5.00	5.15	5.2500
	58	5.25	5.08	5.25	5.10	5.00	5.10	5.2500
	59	5.25	5.04	5.25	5.20	5.00	5.05	5.2500
	60	5.25	5.00	5.25	5.30	5.00	5.00	5.2500
	61	5.25	5.00	5.25	5.40	5.00	5.00	5.2500
	62	5.25	5.00	5.25	5.50	5.00	5.00	5.2500
	63	5.25	5.00	5.25	5.60	5.00	5.00	5.2500
	64	5.25	5.00	5.25	5.70	5.00	5.00	5.2500
	65	5.25	5.00	5.25	5.70	5.00	5.00	5.2500
	66	5.25	5.00	5.25	5.70	5.00	5.00	5.2500
	67	5.25	5.00	5.25	5.70	5.00	5.00	5.2500
	68	5.25	5.00	5.25	5.70	5.00	5.00	5.2500
	69	5.25	5.00	5.25	5.70	5.00	5.00	5.2500
	70	5.25	5.00	5.25	5.70	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
	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 Teachers Retirement Association, the established date for full funding is June
30, 2037.
(g) 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 joint
retirement systems under section 356.214, 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.
History: 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; 2004 c 223 s 7,8; 1Sp2005 c 8 art 11 s 2; 2006 c 271 art
3 sec 47; 2006 c 277 art 3 s 33,34

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,
except that if the actuarial report for the Bloomington Fire Department Relief Association
indicates an unfunded actuarial accrued liability, the unfunded obligation is to be amortized
on a level dollar basis by December 31 of the year occurring 20 years later, and if subsequent
actuarial valuations for the Bloomington Fire Department Relief Association determine a net
actuarial experience loss incurred during the year which ended as of the day before the most
recent actuarial valuation date, any unfunded liability due to that loss is to be amortized on a level
dollar basis by December 31 of the year occurring 20 years later and except that the amortization
date for the Minneapolis Police Relief Association is December 31, 2020;
(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.
History: 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; 1Sp2005 c 8 art 11 s 3

356.2165 LEGISLATIVE COMMISSION ON PENSIONS AND RETIREMENT;
ACTUARIAL SERVICES BILLING TO THIRD PARTIES.
Notwithstanding any provision of law to the contrary, the Legislative Commission on
Pensions and Retirement may bill third parties for actuarial services performed for their benefit
under its contract with its consulting actuary under Minnesota Statutes, section 3.85, and
may deposit the actuarial services reimbursements from those third parties to the credit of the
commission, and those deposited reimbursements are reappropriated to the commission.
History: 2004 c 267 art 6 s 5

356.217 [Repealed, 2004 c 223 s 11]

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. Following that initial report, 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, after four years of reporting under this paragraph, the total portfolio time weighted
rate of return, net of all investment related costs and fees, provided by the public pension plan
differs by no more than 0.1 percent from the comparable return for the plan calculated by the
Office of the State Auditor, and if a public pension plan has a total market value of $25,000,000
or more as of the beginning of the calendar year, and if the public pension plan's annual audit is
performed by the state auditor or by the legislative auditor, the report required by subdivision
1 must include the market value of the total portfolio and the market value of each asset class
included in the pension fund as of the beginning of the calendar year and as of the end of the
calendar year. At the discretion of the state auditor, the public pension plan may be required to
submit 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 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 the market value of a public pension plan's fund drops
below $25,000,000 in a subsequent year, 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), except that if the public pension plan's annual audit is not performed by the state
auditor or legislative auditor, paragraph (c) applies.
(c) If paragraph (b) would apply if the annual audit were provided by the state auditor or
legislative auditor, the report required by subdivision 1 must include the market value of the total
portfolio and the market value of each 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.
(d) For public pension plans to which paragraph (b) or (c) 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.
(e) If a public pension plan has a total market value of less than $25,000,000 as of the
beginning of the calendar year and was never required to file under paragraph (b) or (c), 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.
(f) Any public pension plan reporting under paragraph (b) or (c) must include computed
time-weighted rates of return with the report, in addition to all other required information, as
applicable. The chief administrative officer of the public pension plan submitting the returns must
certify, on a form prescribed by the state auditor, that the returns have been computed by the
pension plan's investment performance consultant or custodial bank. The chief administrative
officer of the public pension plan submitting the returns also 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 presentation standards set by the Certified Financial Analyst
Institute. If the certifications required under this paragraph are not provided, the reporting
requirements of paragraph (c) apply.
(g) For public pension plans reporting under paragraph (e), 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 for
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 (f).
(b) For each public pension plan reporting under subdivision 3, paragraph (b), the state
auditor shall report total portfolio and asset class time-weighted rates of return, net of all
investment-related costs and fees. If the state auditor has required a plan to submit 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 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 as prescribed under subdivision 3, paragraph (b), the state auditor shall also compute
and report total portfolio and asset class time-weighted rates of return, net of all costs and fees.
(c) For each public pension plan reporting under subdivision 3, paragraph (c), the state
auditor shall compute and report total portfolio and asset class time-weighted rates of return, net
of all costs and fees.
(d) For each public pension plan reporting under subdivision 3, paragraph (e), 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 (g), the state
auditor may also compute and report asset class time-weighted rates of return, net of all costs
and fees.
(e) The report by the state auditor must include the information submitted by the pension
plans under subdivision 3, paragraph (d), or a synopsis of that information.
(f) 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).
(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.
    Subd. 9. Data availability. Any information received by the state auditor under this section,
if the data are public, must be made available to individuals or organizations which request that
information. The state auditor is authorized to charge fees sufficient to cover the cost of providing
the requested information in usable formats.
    Subd. 10. Pension performance reporting. In addition to report presentations that the
state auditor is required to provide elsewhere in this section, the state auditor shall provide an
analysis comparing the one-year and the five-year rate of return for each pension fund and the
benchmark rate of return for each fund. The state auditor shall select the benchmark rate of
return based on the best practice in the industry.
History: 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; 2006 c 271 art 8 s 4,5; 2006 c 277 art 6 s 1,2

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.
History: 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.
History: 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

LIMITATIONS ON SUPPLEMENTAL AND LOCAL

RETIREMENT PLANS

356.24 SUPPLEMENTAL PENSION OR DEFERRED COMPENSATION PLANS,
RESTRICTIONS UPON GOVERNMENT UNITS.
    Subdivision 1. Restriction; exceptions. (a) 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, but including city managers covered by an alternative retirement
arrangement under section 353.028, subdivision 3, paragraph (a), or by the defined contribution
plan of the Public Employees Retirement Association under section 353.028, subdivision 3,
paragraph (b), 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 or in the individual employment contract
between a city and a city manager, 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 laborers national industrial pension fund or to a laborers local 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 $5,000 per year per employee;
(9) to the plumbers and pipefitters national pension fund or to a plumbers and pipefitters
local 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 $5,000 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 $5,000 per year per employee;
(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; or
(12) to the International Association of Machinists 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 $5,000 per year per employee.
(b) No governmental subdivision may make a contribution to a deferred compensation plan
operating under section 457 of the Internal Revenue Code for volunteer or emergency on-call
firefighters in lieu of providing retirement coverage under the federal old age, survivors, and
disability insurance program.
    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.
History: 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; 1Sp2003 c 12 art 7 s 1; 2006 c 271 art 3 s 40; art 7 s 1

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.
History: 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 firefighters relief association that is established under chapter 424A and is
governed by sections 69.771 to 69.776.
History: 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]

PUBLIC RETIREMENT PLAN PORTABILITY MECHANISMS

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 at the appropriate rate under the laws governing
each public pension plan or fund named in subdivision 3, based on the date of the person's initial
entry into public employment 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 St. Paul Teachers Retirement Fund Association, established under chapter 354A;
(13) the Duluth Teachers Retirement Fund Association, established under chapter 354A; and
(14) the judges retirement fund, established by chapter 490.
History: 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; 2006 c 271 art 11 s 48; 2006 c 277 art 2 s 10; art 3 s 35

356.301 [Repealed, 1987 c 284 art 8 s 3]

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 the normal retirement 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 St. Paul Teachers Retirement Fund Association, established by chapter 354A;
(7) the Minneapolis Employees Retirement Fund, established by chapter 422A;
(8) the state correctional employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;
(9) the State Patrol retirement plan, established by chapter 352B;
(10) the public employees police and fire plan of the Public Employees Retirement
Association, established by chapter 353;
(11) the local government correctional service retirement plan of the Public Employees
Retirement Association, established by chapter 353E; and
(12) the judges retirement plan, established by chapter 490.
History: 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; 2004 c 267 art 8 s 33;
2006 c 271 art 11 s 48; 2006 c 277 art 3 s 36

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 St. Paul Teachers Retirement Fund Association, established by chapter 354A;
(13) the Minneapolis Employees Retirement Fund, established by chapter 422A; and
(14) the judges retirement fund, established by chapter 490.
History: 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; 2006 c 271 art 11 s
48; 2006 c 277 art 3 s 37

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]

RETIREMENT ANNUITIES

356.315 RETIREMENT BENEFIT FORMULA PERCENTAGES.
    Subdivision 1. Coordinated plan members. The applicable benefit accrual rate is 1.2
percent.
    Subd. 1a. Coordinated plan members. The applicable benefit accrual rate is 1.4 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. 2b. Certain coordinated program members. The applicable benefit accrual rate
is 1.9 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.
History: 2002 c 392 art 11 s 22; 2006 c 277 art 3 s 38,39

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

356.401 EXEMPTION FROM PROCESS.
    Subdivision 1. Exemption; exceptions. None of the money, annuities, or other benefits
provided for in the governing law of a covered retirement plan is assignable either in law or in
equity or subject to state estate tax, or to execution, levy, attachment, garnishment, or other legal
process, except as provided in subdivision 2 or section 518.58, 518.581, or 518A.53.
    Subd. 2. Automatic deposits. (a) The chief administrative officer of a covered retirement
plan may remit, through an automatic deposit system, annuity, benefit, or refund payments only to
a financial institution associated with the National Automated Clearinghouse Association or a
comparable successor organization that is trustee for a person who is eligible to receive the
annuity, benefit, or refund.
(b) Upon the request of a retiree, disabilitant, survivor, or former member, the chief
administrative officer of a covered retirement plan may remit the annuity, benefit, or refund
check to the applicable financial institution for deposit in the person's individual account or the
person's joint account. An overpayment to a joint account after the death of the annuitant or
benefit recipient must be repaid to the fund of the applicable covered retirement plan by the joint
tenant if the overpayment is not repaid to that fund by the financial institution associated with
the National Automated Clearinghouse Association or its successor. The governing board of the
covered retirement plan may prescribe the conditions under which these payments may be made.
    Subd. 3. Covered retirement plans. The provisions of this section apply 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 public employees defined contribution plan, established by chapter 353D;
(10) the local government correctional service retirement plan of the Public Employees
Retirement Association, established by chapter 353E;
(11) the Teachers Retirement Association, established by chapter 354;
(12) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
(13) the Minneapolis Teachers Retirement Fund Association, established by chapter 354A;
(14) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
(15) the individual retirement account plan, established by chapter 354B;
(16) the higher education supplemental retirement plan, established by chapter 354C;
(17) the Minneapolis Employees Retirement Fund, established by chapter 422A;
(18) the Minneapolis Police Relief Association, established by chapter 423B;
(19) the Minneapolis Firefighters Relief Association, established by chapter 423C; and
(20) the judges retirement fund, established by chapter 490.
History: 2005 c 164 s 29; 1Sp2005 c 7 s 28; 1Sp2005 c 8 art 10 s 64; 2006 c 271 art 11 s 48

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.
History: 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.
History: 2002 c 392 art 11 s 26

SURVIVOR BENEFITS

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.
History: 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.
History: 2002 c 392 art 11 s 28

POSTRETIREMENT INCREASES

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.
History: 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 St. Paul Teachers Retirement Fund Association established under chapter 354A; and
(7) the Duluth Teachers Retirement Fund Association established under chapter 354A.
History: 2002 c 392 art 11 s 30; 2006 c 277 art 3 s 40

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 under section 356.214 in determining the financial
requirements of the fund and contributions under section 422A.101.
History: 2002 c 392 art 11 s 31; 2006 c 271 art 3 s 47

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 356.42 and 356.43 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.
History: 2002 c 392 art 11 s 32; 2005 c 10 art 5 s 3

REFUNDS

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.
History: 2002 c 392 art 11 s 33

356.441 PAYMENT ACCEPTANCE ALLOWED.
    Subdivision 1. Payment authorization. The repayment of a refund and interest on that
refund or the payment of equivalent contributions and interest for an eligible leave of absence, as
permitted under laws governing any public pension plan in Minnesota, may be made:
(1) with funds distributed or transferred from a plan qualified under the federal Internal
Revenue Code of 1986, section 401, subsection (a) or (k); 403; 408; or 457, subsection (b),
as amended from time to time; or
(2) with funds distributed from an individual retirement account or individual retirement
annuity, if done solely in a manner that is eligible for treatment as a nontaxable rollover or
transfer under the applicable federal law.
    Subd. 2. Separate accounting requirement. Nontaxable rollovers or transfer amounts under
subdivision 1 received by a public pension fund must be separately accounted for as member
contributions not previously taxed. Before accepting any rollovers or transfers to which this
section applies, the executive director shall require the member to provide written documentation
to demonstrate that the amounts to be rolled over or transferred are eligible for a tax-free rollover
or transfer and qualify for that treatment under the federal Internal Revenue Code of 1986, as
amended.
History: 2002 c 392 art 11 s 34; 2004 c 267 art 9 s 22

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]

OPTIONAL ANNUITY FORMS

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 356.63,
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.
History: 2002 c 392 art 11 s 35; 2003 c 2 art 1 s 41

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 Employees Retirement Fund established under chapter 422A;
(12) the Minneapolis Firefighters Relief Association established under chapter 423C;
(13) the Minneapolis Police Relief Association established under chapter 423B; and
(14) the local government correctional service retirement plan of the Public Employees
Retirement Association established under chapter 353E.
History: 2002 c 392 art 11 s 36; 2006 c 277 art 3 s 41

REEMPLOYED ANNUITANT EARNINGS DISPOSITION

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.
(d) In lieu of the direct payment of the person's amount under subdivision 2, on or after the
payment date under paragraph (a), if the federal Internal Revenue Code so permits, the retired
member may elect to have all or any portion of the payment amount under this section paid in the
form of a direct rollover to an eligible retirement plan as defined in section 402(c) of the federal
Internal Revenue Code that is specified by the retired member. If the retired member dies with a
balance remaining payable under this section, the surviving spouse of the retired member, or if
none, the deceased person's designated beneficiary, or if none, the administrator of the deceased
person's estate may elect a direct rollover under this paragraph.
History: 2002 c 392 art 11 s 37; 1Sp2005 c 8 art 3 s 7

MARRIAGE DISSOLUTION RETIREMENT

COVERAGE INFORMATION

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.
History: 2002 c 392 art 11 s 38

SERVICE AND SALARY CREDIT UPON WRONGFUL DISCHARGE

356.50 SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN THE EVENT
OF WRONGFUL DISCHARGE; ANNUITY AND DISABILITY TREATMENT.
    Subdivision 1. Application. (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, by an arbitrator
in binding arbitration, by the commissioner of veterans affairs, or by a board, commission, or
panel acting under section 197.46, 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.
    Subd. 2. Service credit procedure. (a) To obtain the public pension plan allowable service
credit, the eligible person under subdivision 1 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 unemployment insurance, workers'
compensation, or wages from other sources which reduced the back award. No contributions may
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
or within 60 days of a billing from the retirement fund, whichever is later.
(b) 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 (a). 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 (a).
    Subd. 3. Employer reporting. The employer must report to the executive director of the
applicable pension plan that a person has been determined to be wrongfully discharged and the
employer must provide a copy of the written order or decision.
    Subd. 4. Annuity repayment. Notwithstanding subdivisions 1 and 2, if after being
discharged, the person commences receipt of an annuity from the applicable plan, and it is later
determined that the person was wrongfully discharged, the person shall repay the annuity received
in a lump sum within 60 days of receipt of the back pay award. If the annuity is not repaid, the
person is not entitled to reinstatement in the applicable plan as an active member, the person is not
authorized to make payments under subdivision 2, paragraph (a), and, for subsequent employment
with the employer, the person shall be treated as a reemployed annuitant.
    Subd. 5. Disability treatment. If a person is wrongfully discharged and before reinstatement
takes a refund of employee contributions under the applicable plan's refund provision and fails
to repay that refund, then not withstanding other law to the contrary, if the person applies for a
disability benefit and is approved for that benefit, the disability benefit amount must be computed
solely on the years of covered service provided after reinstatement, on the individual's salary for
benefit computation purposes, and on the applicable plan accrual rates, rather than receiving a
minimum disability benefit amount, if applicable, specified in plan law.
History: 1992 c 443 s 1; 1994 c 488 s 8; 2002 c 392 art 11 s 39; 2004 c 206 s 52; 2006 c
271 art 3 s 41

356.55 MS 2002 [Repealed, 1998 c 390 art 4 s 1; 1Sp2001 c 10 art 6 s 16; 2002 c 392 art 11 s
40; 1Sp2003 c 12 art 6 s 1]

356.551 POST JULY 1, 2004, 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 minimum purchase amount set forth in paragraph
(c) applies, 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 under section 356.214, of the amount of the additional
retirement annuity obtained by the acquisition of the additional service credit in this section.
(b) Calculation of this amount must be made using the preretirement interest rate applicable
to the public pension plan specified in section 356.215, subdivision 8, 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.
(c) The prior service credit purchase amount may not be less than the amount determined
by applying the current employee or member contribution rate, the employer contribution rate,
and the additional employer contribution rate, if any, to the person's current annual salary and
multiplying that result by the number of whole and fraction years of service to be purchased.
(d) 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.
(e) 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 90 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 prior service credit purchaser must provide any
relevant documentation required by the chief administrative officer of the applicable 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 full purchase
payment amount specified in subdivision 2.
History: 1998 c 390 art 4 s 2; 2002 c 392 art 11 s 41; 1Sp2005 c 8 art 10 s 65

356.555 MS 2002 [Expired]

356.58 [Repealed, 2003 c 2 art 1 s 45]

356.60 [Repealed, 1982 c 578 art 1 s 19]

356.61 [Repealed, 2000 c 461 art 14 s 1]

COVERED SALARY LIMITATION

356.611 LIMITATION ON PUBLIC EMPLOYEE SALARIES FOR PENSION PURPOSES.
    Subdivision 1.[Repealed, 2005 c 169 s 2]
    Subd. 2. Federal compensation limits. (a) For members of a covered pension plan
enumerated in section 356.30, subdivision 3, compensation in excess of the limitation specified in
section 401(a)(17) of the Internal Revenue Code, as amended, for changes in the cost of living
under section 401(a)(17)(B) of the Internal Revenue Code, may not be included for contribution
and benefit computation purposes.
(b) Notwithstanding paragraph (a), for members specified in paragraph (a) who first
contributed to a covered plan before July 1, 1995, the annual compensation limit specified in
Internal Revenue Code 401(a)(17) on June 30, 1993, applies if that provides a greater allowable
annual compensation.
    Subd. 3. Maximum benefit limitations. A member's annual benefit, if necessary, must be
reduced to the extent required by section 415(b) of the Internal Revenue Code, as adjusted by
the United States secretary of the treasury under section 415(d) of the Internal Revenue Code.
For purposes of section 415 of the Internal Revenue Code, the limitation year of a pension
plan covered by this section must be the fiscal year or calendar year of that plan, whichever is
applicable. The accrued benefit limitation described in section 415(e) of the Internal Revenue
Code must cease to be effective for limitation years beginning after December 31, 1999.
    Subd. 4. Compensation. (a) For purposes of this section, compensation means a member's
compensation actually paid or made available for any limitation year determined as provided
by treasury regulation section 1.415-2(d)(10).
(b) Compensation for any period includes:
(1) any elective deferral as defined in section 402(g)(3) of the Internal Revenue Code;
(2) any elective amounts that are not includable in a member's gross income by reason of
sections 125 or 457 of the Internal Revenue Code; and
(3) any elective amounts that are not includable in a member's gross income by reason of
section 132(f)(4) of the Internal Revenue Code.
History: 1994 c 528 art 4 s 11; 1995 c 262 art 1 s 15; 2002 c 392 art 11 s 43; 2004 c
267 art 2 s 6-8; art 10 s 1
NOTE: Subdivision 1 was also amended by Laws 2005, First Special Session chapter 8,
article 1, section 23, to read as follows:
"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 110
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 or to a judge;
(2) to an employee or an elected official who is not subject to the limit as specified under
section 43A.17, subdivision 9;
(3) to an employee of a political subdivision in a position that is excluded from the limit as
specified under section 43A.17, subdivision 9;
(4) to a state employee as defined under section 43A.02, subdivision 21;
(5) to an employee of Gillette Hospital who is covered by the general state employees
retirement plan of the Minnesota State Retirement System;
(6) to an employee of the Minnesota Crop Improvement Council;
(7) to an employee of the Minnesota Historical Society;
(8) to an employee of the Southern Minnesota Municipal Power Association; or
(9) to the director of the Duluth Port Authority.
(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."

356.615 [Repealed, 2002 c 392 art 11 s 53]

MEMBER CONTRIBUTION EMPLOYER PICK UP

356.62 PAYMENT OF EMPLOYEE CONTRIBUTION.
(a) For purposes of any public pension plan, as defined in section 356.63, 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.
History: 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;
2003 c 2 art 1 s 42

PENSION ASSET AND INVESTMENT LIMITATIONS

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.
History: 2002 c 392 art 11 s 45

356.635 INTERNAL REVENUE CODE COMPLIANCE.
    Subdivision 1. Retirement benefit commencement. The retirement benefit of a member
who has terminated employment must begin no later than the later of April 1 of the calendar year
following the calendar year that the member attains the federal minimum distribution age under
section 401(a)(9) of the Internal Revenue Code or April 1 of the calendar year following the
calendar year in which the member terminated employment.
    Subd. 2. Distributions. Distributions shall be made as required under section 401(a)(9) of
the Internal Revenue Code and the treasury regulations adopted under that section, including,
but not limited to, the incidental death benefit provisions of section 401(a)(9)(G) of the Internal
Revenue Code.
    Subd. 3. Direct rollovers. A distributee may elect, at the time and in the manner prescribed
by the plan administrator, to have all or any portion of an eligible rollover distribution paid
directly to an eligible retirement plan as specified by the distributee.
    Subd. 4. Eligible rollover distribution. An "eligible rollover distribution" is any distribution
of all or any portion of the balance to the credit of the distributee.
    Subd. 5. Ineligible amounts. An eligible rollover distribution does not include:
(1) a distribution that is one of a series of substantially equal periodic payments, receivable
annually or more frequently, that is made for the life or life expectancy of the distributee, the joint
lives or joint life expectancies of the distributee and the distributee's designated beneficiary, or
for a specified period of ten years or more;
(2) a distribution that is required under section 401(a)(9) of the Internal Revenue Code; or
(3) any other exception required by law or the Internal Revenue Code.
    Subd. 6. Eligible retirement plan. (a) An "eligible retirement plan" is:
(1) an individual retirement account under section 408(a) of the Internal Revenue Code;
(2) an individual retirement annuity plan under section 408(b) of the Internal Revenue Code;
(3) an annuity plan under section 403(a) of the Internal Revenue Code;
(4) a qualified trust plan under section 401(a) of the Internal Revenue Code that accepts
the distributee's eligible rollover distribution;
(5) an annuity contract under section 403(b) of the Internal Revenue Code; or
(6) an eligible deferred compensation plan under section 457(b) of the Internal Revenue
Code, which is maintained by a state or local government and which agrees to separately account
for the amounts transferred into the plan.
(b) For distributions of after-tax contributions which are not includable in gross income, the
after-tax portion may be transferred only to an individual retirement account or annuity described
in section 408(a) or (b) of the Internal Revenue Code, or to a qualified defined contribution
plan described in either section 401(a) or 403(a) of the Internal Revenue Code, that agrees to
separately account for the amounts transferred, including separately accounting for the portion of
the distribution which is includable in gross income and the portion of the distribution which is
not includable.
    Subd. 7. Distributee. A "distributee" is:
(1) an employee or a former employee;
(2) the surviving spouse of an employee or former employee; or
(3) the former spouse of the employee or former employee who is the alternate payee under a
qualified domestic relations order as defined in section 414(p) of the Internal Revenue Code, or
who is a recipient of a court-ordered equitable distribution of marital property, as provided in
section 518.58.
    Subd. 8. Forfeitures. For defined benefit plans, unless otherwise permitted by section
401(a)(8) of the Internal Revenue Code, forfeitures may not be applied to increase the benefits
that any employee would otherwise receive under the plan.
    Subd. 9. Military service. Contributions, benefits, and service credit with respect to qualified
military service must be provided according to section 414(u) of the Internal Revenue Code.
History: 2004 c 267 art 10 s 2

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 .
History: 2002 c 392 art 11 s 46

ABANDONED PENSION FUND AMOUNTS

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.
History: 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.
History: 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]

HEALTH INSURANCE WITHHOLDING

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.
History: 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]

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.
History: 2000 c 461 art 3 s 45