1.1 	A bill for an act
1.2 	relating to retirement; public employees retirement association; Virginia Fire 
1.3 	Department Relief Association; authorizing an administrative consolidation 
1.4 	of the relief association; amending Minnesota Statutes 2010, sections 69.77, 
1.5 	subdivisions 1a, 4; 353.01, subdivision 2a; 353.05; 353.06; 353.15, subdivision 
1.6 	1; 353.37, subdivision 1; 353.65, subdivision 1, by adding a subdivision; 
1.7 	353.68, subdivision 1; 356.20, subdivision 2; 356.214, subdivision 1; 356.215, 
1.8 	subdivisions 8, 11; 356.401, subdivision 3; 356.407, subdivision 2; 356.465, 
1.9 	subdivision 3; 423A.02, subdivision 1b; proposing coding for new law in 
1.10 	Minnesota Statutes, chapter 353.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. Minnesota Statutes 2010, section 69.77, subdivision 1a, is amended to read:
1.13 		Subd. 1a.Covered retirement plans. The provisions of this section apply to the 
1.14 	following local retirement plans:
1.15 	(1) the Bloomington Firefighters Relief Association;
1.16 	(2) the Fairmont Police Relief Association;
1.17 	(3) the Minneapolis Firefighters Relief Association; and
1.18 	(4) the Minneapolis Police Relief Association~~; and~~.
1.19 	~~(5) the Virginia Fire Department Relief Association.~~

1.20 	Sec. 2. Minnesota Statutes 2010, section 69.77, subdivision 4, is amended to read:
1.21 		Subd. 4.Relief association financial requirements; minimum municipal 
1.22 	obligation. (a) The officers of the relief association shall determine the financial 
1.23 	requirements of the relief association and minimum obligation of the municipality for 
1.24 	the following calendar year in accordance with the requirements of this subdivision. 
1.25 	The financial requirements of the relief association and the minimum obligation of the 
2.1 	municipality must be determined on or before the submission date established by the 
2.2 	municipality under subdivision 5.
2.3 	(b) The financial requirements of the relief association for the following calendar 
2.4 	year must be based on the most recent actuarial valuation or survey of the special fund of 
2.5 	the association if more than one fund is maintained by the association, or of the association, 
2.6 	if only one fund is maintained, prepared in accordance with sections 356.215, subdivisions 
2.7 	4 to 15, and 356.216, as required under subdivision 10. If an actuarial estimate is prepared 
2.8 	by the actuary of the relief association as part of obtaining a modification of the benefit 
2.9 	plan of the relief association and the modification is implemented, the actuarial estimate 
2.10 	must be used in calculating the subsequent financial requirements of the relief association.
2.11 	(c) If the relief association has an unfunded actuarial accrued liability as reported in 
2.12 	the most recent actuarial valuation or survey, the total of the amounts calculated under 
2.13 	clauses (1), (2), and (3), constitute the financial requirements of the relief association for 
2.14 	the following year. If the relief association does not have an unfunded actuarial accrued 
2.15 	liability as reported in the most recent actuarial valuation or survey, the amount calculated 
2.16 	under clauses (1) and (2) constitute the financial requirements of the relief association for 
2.17 	the following year. The financial requirement elements are:
2.18 	(1) the normal level cost requirement for the following year, expressed as a dollar 
2.19 	amount, which must be determined by applying the normal level cost of the relief 
2.20 	association as reported in the actuarial valuation or survey and expressed as a percentage 
2.21 	of covered payroll to the estimated covered payroll of the active membership of the relief 
2.22 	association, including any projected change in the active membership, for the following 
2.23 	year;
2.24 	(2) for the Bloomington Fire Department Relief Association~~,~~ and the Fairmont Police 
2.25 	Relief Association, ~~and the Virginia Fire Department Relief Association,~~ to the dollar 
2.26 	amount of normal cost determined under clause (1) must be added an amount equal to the 
2.27 	dollar amount of the administrative expenses of the special fund of the association if more 
2.28 	than one fund is maintained by the association, or of the association if only one fund is 
2.29 	maintained, for the most recent year, multiplied by the factor of 1.035. The administrative 
2.30 	expenses are those authorized under section 69.80. No amount of administrative expenses 
2.31 	under this clause are to be included in the financial requirements of the Minneapolis 
2.32 	Firefighters Relief Association or the Minneapolis Police Relief Association; and
2.33 	(3) to the dollar amount of normal cost and expenses determined under clauses 
2.34 	(1) and (2) must be added an amount equal to the level annual dollar amount which 
2.35 	is sufficient to amortize the unfunded actuarial accrued liability as determined from 
2.36 	the actuarial valuation or survey of the fund, using an interest assumption set at the 
3.1 	applicable rate specified in section 356.215, subdivision 8, by that fund's amortization 
3.2 	date as specified in paragraph (d).
3.3 	(d) The Minneapolis Firefighters Relief Association special fund amortization date 
3.4 	is determined under section 423C.15, subdivisions 3 and 4. ~~The Virginia Fire Department~~ 
3.5 	~~Relief Association special fund amortization date is December 31, 2010.~~ The Minneapolis 
3.6 	Police Relief Association special fund and the Fairmont Police Relief Association 
3.7 	special fund amortization date is December 31, 2020. The Bloomington Fire Department 
3.8 	Relief Association special fund amortization date is determined under section 356.216, 
3.9 	paragraph (a), clause (2). The amortization date specified in this paragraph supersedes any 
3.10 	amortization date specified in any applicable special law.
3.11 	(e) The minimum obligation of the municipality is an amount equal to the financial 
3.12 	requirements of the relief association reduced by the estimated amount of member 
3.13 	contributions from covered salary anticipated for the following calendar year and the 
3.14 	estimated amounts anticipated for the following calendar year from the applicable state aid 
3.15 	program established under sections 69.011 to 69.051 receivable by the relief association 
3.16 	after any allocation made under section 69.031, subdivision 5, paragraph (b), clause (2), 
3.17 	or 423A.01, subdivision 2, paragraph (a), clause (6), from the local police and salaried 
3.18 	firefighters' relief association amortization aid program established under section 423A.02, 
3.19 	subdivision 1, from the supplementary amortization state-aid program established under 
3.20 	section 423A.02, subdivision 1a, and from the additional amortization state aid under 
3.21 	section 423A.02, subdivision 1b.

3.22 	Sec. 3. Minnesota Statutes 2010, section 353.01, subdivision 2a, is amended to read:
3.23 		Subd. 2a.Included employees; mandatory membership. (a) Public employees 
3.24 	whose salary exceeds $425 in any month and who are not specifically excluded under 
3.25 	subdivision 2b or who have not been provided an option to participate under subdivision 
3.26 	2d, whether individually or by action of the governmental subdivision, must participate as 
3.27 	members of the association with retirement coverage by the general employees retirement 
3.28 	plan under this chapter, the public employees police and fire retirement plan under this 
3.29 	chapter, or the local government correctional employees retirement plan under chapter 
3.30 	353E, whichever applies. Membership commences as a condition of their employment on 
3.31 	the first day of their employment or on the first day that the eligibility criteria are met, 
3.32 	whichever is later. Public employees include but are not limited to:
3.33 	(1) persons whose salary meets the threshold in this paragraph from employment in 
3.34 	one or more positions within one governmental subdivision;
3.35 	(2) elected county sheriffs;
4.1 	(3) persons who are appointed, employed, or contracted to perform governmental 
4.2 	functions that by law or local ordinance are required of a public officer, including, but 
4.3 	not limited to:
4.4 	(i) town and city clerk or treasurer;
4.5 	(ii) county auditor, treasurer, or recorder;
4.6 	(iii) city manager as defined in section 353.028 who does not exercise the option 
4.7 	provided under subdivision 2d; or
4.8 	(iv) emergency management director, as provided under section 12.25;
4.9 	(4) physicians under section 353D.01, subdivision 2, who do not elect public 
4.10 	employees defined contribution plan coverage under section 353D.02, subdivision 2;
4.11 	(5) full-time employees of the Dakota County Agricultural Society; and
4.12 	(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis 
4.13 	Police Relief Association who are not excluded employees under subdivision 2b due 
4.14 	to coverage by the relief association pension plan and who elected general employee 
4.15 	retirement plan coverage before August 20, 2009.
4.16 	(b) A public employee or elected official who was a member of the association on 
4.17 	June 30, 2002, based on employment that qualified for membership coverage by the public 
4.18 	employees retirement plan or the public employees police and fire plan under this chapter, 
4.19 	or the local government correctional employees retirement plan under chapter 353E as of 
4.20 	June 30, 2002, retains that membership for the duration of the person's employment in that 
4.21 	position or incumbency in elected office. Except as provided in subdivision 28, the person 
4.22 	shall participate as a member until the employee or elected official terminates public 
4.23 	employment under subdivision 11a or terminates membership under subdivision 11b.
4.24 	(c) If the salary of an included public employee is less than $425 in any subsequent 
4.25 	month, the member retains membership eligibility.
4.26 	(d) For the purpose of participation in the MERF division of the general employees 
4.27 	retirement plan, ~~public employees include employees~~"public employee" includes an 
4.28 	employee who ~~were members~~was a member of the former Minneapolis Employees 
4.29 	Retirement Fund on June 29, 2010, and who ~~participate~~participates as ~~members~~a member 
4.30 	of the MERF division of the association.
4.31 	(e) For the purpose of participation in the Virginia fire division of the public 
4.32 	employees police and fire retirement plan, "public employee" includes a person who 
4.33 	was a member of the Virginia Fire Department Relief Association on the day before 
4.34 	the effective date of this section.

5.1 	Sec. 4. Minnesota Statutes 2010, section 353.05, is amended to read:
5.2 	353.05 CUSTODIAN OF FUNDS.
5.3 	The commissioner of management and budget shall be ex officio treasurer of the 
5.4 	retirement funds of the association, including the MERF division and the Virginia fire 
5.5 	division, and the general bond of the commissioner of management and budget to the 
5.6 	state must be so conditioned as to cover all liability for acts as treasurer of these funds. 
5.7 	All money of the association received by the commissioner of management and budget 
5.8 	must be set aside in the state treasury to the credit of the proper fund or account. The 
5.9 	commissioner of management and budget shall transmit monthly to the executive director 
5.10 	a detailed statement of all amounts so received and credited to the funds, including the 
5.11 	MERF division and the Virginia fire division. Payments out of the funds, including the 
5.12 	MERF division and the Virginia fire division, may only be made on warrants issued by 
5.13 	the commissioner of management and budget, upon abstracts signed by the executive 
5.14 	director; provided that abstracts for investment may be signed by the executive director of 
5.15 	the State Board of Investment.

5.16 	Sec. 5. Minnesota Statutes 2010, section 353.06, is amended to read:
5.17 	353.06 STATE BOARD OF INVESTMENT TO INVEST FUNDS.
5.18 	(a) The executive director shall from time to time certify to the State Board of 
5.19 	Investment for investment such portions of the funds of the association, including the 
5.20 	MERF division and the Virginia fire division, as in the director's judgment may not be 
5.21 	required for immediate use. The State Board of Investment shall thereupon invest and 
5.22 	reinvest the sum so certified, or transferred, in such securities as are duly authorized as 
5.23 	legal investments under section 11A.24~~and~~. Except for the voluntary statewide lump-sum 
5.24 	volunteer firefighter retirement fund and the Virginia fire division account, the retirement 
5.25 	funds of the retirement plans administered by the board of trustees of the Public Employees 
5.26 	Retirement Association, including the MERF division, must be invested under section 
5.27 	11A.14. The voluntary statewide lump-sum volunteer firefighter retirement fund and 
5.28 	the Virginia fire division account must be invested in the statewide lump-sum volunteer 
5.29 	firefighter account of the Minnesota supplemental investment fund under section 11A.17.
5.30 	(b) The State Board of Investment has authority to sell, convey, and exchange such 
5.31 	securities and invest and reinvest the securities when it deems it desirable to do so and 
5.32 	shall sell securities upon request of the executive director when such funds are needed 
5.33 	for its purposes.
5.34 	(c) All of the provisions regarding accounting procedures and restrictions and 
5.35 	conditions for the purchase and sale of securities under chapter 11A must apply to 
6.1 	the accounting, purchase and sale of securities for the funds of the Public Employees 
6.2 	Retirement Association, including the MERF division and the Virginia fire division.

6.3 	Sec. 6. Minnesota Statutes 2010, section 353.15, subdivision 1, is amended to read:
6.4 		Subdivision 1.Exemption. The provisions of section 356.401 apply to the general 
6.5 	employees retirement plan, to the MERF division, to the public employees police and fire 
6.6 	retirement plan, to the Virginia fire division, and to the local government correctional 
6.7 	service retirement plan.

6.8 	Sec. 7. Minnesota Statutes 2010, section 353.37, subdivision 1, is amended to read:
6.9 		Subdivision 1.Salary maximums. (a) The annuity of a person otherwise eligible 
6.10 	for an annuity from the general employees retirement plan of the Public Employees 
6.11 	Retirement Association, the public employees police and fire retirement plan, or the local 
6.12 	government correctional employees retirement plan must be suspended under subdivision 
6.13 	2 or reduced under subdivision 3, whichever results in the higher annual annuity amount, if 
6.14 	the person reenters public service as a nonelective employee of a governmental subdivision 
6.15 	in a position covered by this chapter or returns to work as an employee of a labor 
6.16 	organization that represents public employees who are association members under this 
6.17 	chapter and salary for the reemployment service exceeds the annual maximum earnings 
6.18 	allowable for that age for the continued receipt of full benefit amounts monthly under the 
6.19 	federal Old Age, Survivors and Disability Insurance Program as set by the secretary of 
6.20 	health and human services under United States Code, title 42, section 403, in any calendar 
6.21 	year. If the person has not yet reached the minimum age for the receipt of Social Security 
6.22 	benefits, the maximum salary for the person is equal to the annual maximum earnings 
6.23 	allowable for the minimum age for the receipt of Social Security benefits.
6.24 	(b) The provisions of paragraph (a) do not apply to the members of the MERF 
6.25 	division or members of the Virginia fire division.

6.26 	Sec. 8. Minnesota Statutes 2010, section 353.65, subdivision 1, is amended to read:
6.27 		Subdivision 1.Fund established. (a) The public employees police and fire fund 
6.28 	is established for police officers and firefighters who meet the eligibility criteria under 
6.29 	section 353.64.
6.30 	(b) Employee contributions, employer contributions, other than the excess 
6.31 	contribution established by section 69.031, subdivision 5, paragraphs (2), clauses (b) and 
6.32 	(c), and (3), and other amounts authorized by law, including all employee and employer 
7.1 	contributions of members transferred must be deposited in the public employees police 
7.2 	and fire fund. 
7.3 	(c) From this fund there is appropriated the payments authorized by sections 353.63 
7.4 	to 353.68 in the amounts and at such time provided by law, including the necessary and 
7.5 	reasonable expenses of administering the public employees police and fire retirement 
7.6 	plan and fund.

7.7 	Sec. 9. Minnesota Statutes 2010, section 353.65, is amended by adding a subdivision 
7.8 	to read:
7.9 		Subd. 1a.Virginia fire division account established; revenue and disbursements.
 7.10 	The Virginia fire division account is established as a special account within the public 
7.11 	employees police and fire retirement fund. The Virginia fire division account includes 
7.12 	all of the assets of the former Virginia Fire Department Relief Association that were 
7.13 	transferred to the administration of the Public Employees Retirement Association under 
7.14 	section 353.668. The special account must be credited with the contributions under section 
7.15 	353.668, subdivision 7, any fire state aid under sections 69.011 to 69.051 payable to 
7.16 	the division account by action of the Virginia city council, investment performance on 
7.17 	the special account assets, and all other income of the division authorized by law. The 
7.18 	payment of annuities and benefits authorized by Laws 1953, chapter 399; Laws 1961, 
7.19 	chapter 420; Laws 1963, chapter 407; Laws 1965, chapter 546; Laws 1969, chapter 578; 
7.20 	Laws 1974, chapter 183; Laws 1982, chapters 574, section 1, and 578, article 1, section 
7.21 	14; Laws 1983, chapter 69, section 1; Laws 1984, chapter 547, section 27; Laws 1987, 
7.22 	chapter 372, article 2, section 14; Laws 1988, chapter 709, article 8, sections 1 and 2; Laws 
7.23 	1991, chapter 62, sections 1 and 2; and Laws 1992, chapter 465, section 1, in the amounts 
7.24 	and at the times provided in those laws, and the necessary and reasonable expenses of the 
7.25 	Virginia fire division are appropriated from the special account.

7.26 	Sec. 10. [353.668] VIRGINIA FIRE CONSOLIDATION ACCOUNT; 
7.27 	ESTABLISHMENT AND OPERATION.
7.28 		Subdivision 1.Administrative consolidation. Notwithstanding any provision 
7.29 	of this chapter or of the governing laws of the former Virginia Fire Department Relief 
7.30 	Association listed in section 353.65, subdivision 1a, to the contrary, the administration of 
7.31 	the Virginia Fire Department Relief Association as the Virginia fire division is transferred 
7.32 	to the Public Employees Retirement Association board of trustees and executive director. 
7.33 	The assets, service credit, and benefit liabilities of the Virginia Fire Department Relief 
7.34 	Association transfer to the Virginia fire division account within the public employees 
8.1 	police and fire retirement fund of the Public Employees Retirement Association 
8.2 	established by section 353.65, subdivision 1a, on the first day of the first month next 
8.3 	following the effective date of this section.
8.4 		Subd. 2.Membership transfer. Effective on the first day of the first month next 
8.5 	following the effective date of this section, the members of the Virginia Fire Department 
8.6 	Relief Association are transferred to the Virginia fire division administered by the Public 
8.7 	Employees Retirement Association and are no longer members of the Virginia Fire 
8.8 	Department Relief Association.
8.9 		Subd. 3.Service credit and benefit liability transfer. (a) All allowable service 
8.10 	credit and salary credit of the members of the Virginia Fire Department Relief Association 
8.11 	as specified in the records of the Virginia Fire Department Relief Association through 
8.12 	the day before the first day of the first month next following the effective date of this 
8.13 	section are transferred to the Virginia fire division of the Public Employees Retirement 
8.14 	Association and are credited by the Virginia fire division. Survivor benefits of members 
8.15 	of the Virginia fire division entitled to survivor benefits under the governing laws of the 
8.16 	former Virginia Fire Department Relief Association listed in section 353.65, subdivision 
8.17 	1a, must be calculated under those listed laws. Each benefit recipient of the Virginia fire 
8.18 	division has the option to elect to have future postretirement adjustments calculated as the 
8.19 	increase amount equal to the percentage increase in the salary of first-grade firefighters of 
8.20 	the Virginia Fire Department for the preceding calendar year, but not to exceed 3.5 percent 
8.21 	in any year, or to have future postretirement adjustments as the increase amount equal 
8.22 	to one percent on January 1, 2012, and equal to the increase determined under section 
8.23 	356.415, subdivision 1c, on January 1, 2013, and thereafter.
8.24 	(b) The liability for the payment of service pensions, disability pensions, and 
8.25 	survivor benefits to retirees and benefit recipients of the Virginia Fire Department Relief 
8.26 	Association as specified in the records of the Virginia Fire Department Relief Association 
8.27 	on the last day of the month in which this section is effective is transferred to the Virginia 
8.28 	fire division of the Public Employees Retirement Association as of the first day of the first 
8.29 	month next following the effective date of this section.
8.30 		Subd. 4.Records transfer. On the last day of the month in which this section is 
8.31 	effective, the secretary of the Virginia Fire Department Relief Association shall transfer 
8.32 	all records and documents relating to the Virginia Fire Department Relief Association and 
8.33 	its benefit plan to the executive director of the Public Employees Retirement Association. 
8.34 	To the extent possible, original copies of all records and documents must be transferred.
8.35 		Subd. 5.Transfer of title to assets. (a) On the last of the month in which this 
8.36 	section is effective, legal title to the assets of the special fund of the Virginia Fire 
9.1 	Department Relief Association transfers to the State Board of Investment. The treasurer of 
9.2 	the Virginia Fire Department Relief Association must transfer in cash the assets of the 
9.3 	special fund of the Virginia Fire Department Relief Association on the legal title transfer 
9.4 	date or as soon as is practicable thereafter.
9.5 	(b) The Virginia fire division is the successor in interest to all claims that the former 
9.6 	Virginia Fire Department Relief Association may have or may assert against any person 
9.7 	and is the successor in interest to all claims which could have been asserted against the 
9.8 	former Virginia Fire Department Relief Association, but the Virginia fire division is not 
9.9 	liable for any claim against the former Virginia Fire Department Relief Association, its 
9.10 	former governing board, or its former officers acting in a fiduciary capacity under chapter 
9.11 	356A or under common law, which is founded upon a claim of breach of fiduciary duty, 
9.12 	but where the act or acts constituting the claimed breach were not undertaken in good 
9.13 	faith. The Public Employees Retirement Association may assert any applicable defense 
9.14 	to any claim in any judicial or administrative proceeding that the former Virginia Fire 
9.15 	Department Relief Association, its former board, or its officers would otherwise have been 
9.16 	entitled to assert. The Public Employees Retirement Association also may assert any 
9.17 	applicable defense that it has in its capacity as a statewide agency.
9.18 		Subd. 6.Benefit election. Except as modified with respect to future postretirement 
9.19 	adjustments elected under subdivision 3, paragraph (a), and this subdivision, the benefits 
9.20 	in effect on the first of the month preceding the effective date of this section continue after 
9.21 	the effective date of this section. Before December 31 of the calendar year in which this 
9.22 	section becomes effective, on a date set by the executive director of the Public Employees 
9.23 	Retirement Association, all service pensioners, disabled pensioners, and survivors of the 
9.24 	Virginia fire division shall elect between the alternative postretirement adjustment options 
9.25 	set forth in subdivision 3, paragraph (a). In advance of the benefit election, the executive 
9.26 	director of the Public Employees Retirement Association shall make all reasonable efforts 
9.27 	to provide any necessary benefit counseling to persons who are entitled to make or who 
9.28 	are affected by the election, if benefit counseling is requested by the person. If no election 
9.29 	is made in a timely fashion, the adjustment based on the rate of increase in the salary 
9.30 	of first-grade Virginia Fire Department firefighters must apply to the applicable person 
9.31 	and the person's survivor, if any.
9.32 		Subd. 7.Virginia fire division contributions. (a) After December 31 of the 
9.33 	calendar year in which this section is effective, the contributions by the city of Virginia to 
9.34 	the Virginia fire division are governed by this subdivision.
9.35 	(b) For the initial year after the administrative consolidation is effective, the financial 
9.36 	requirements of the Virginia fire division is an amount equal to the most recent financial 
10.1 	requirements of the executive director of the Public Employees Retirement Association 
10.2 	under section 69.77.
10.3 	(c) For the second and each succeeding year after the administrative consolidation 
10.4 	is effective, the financial requirements of the Virginia fire division is the total actuarial 
10.5 	required contribution determined under section 356.215 by the approved actuary retained 
10.6 	by the Public Employees Retirement Association in the most recent actuarial valuation 
10.7 	prepared under section 356.215 and the standards for actuarial work adopted by the 
10.8 	Legislative Commission on Pensions and Retirement for the Virginia fire division and the 
10.9 	employer contribution for the Virginia fire division annually is equal to the most recently 
10.10 	reported total actuarial required contribution, reduced by any additional amortization state 
10.11 	aid under section 423A.02, subdivision 1b, paragraph (c), clause (3), but is not less than 
10.12 	the amount by which the amount of the service pensions, disability pensions, and survivor 
10.13 	benefits paid during the preceding calendar year, multiplied by the factor of 1.035, 
10.14 	exceeds the market value of the assets of the Virginia fire division account during the 
10.15 	preceding calendar year, multiplied by the factor of 1.035, and reduced by any additional 
10.16 	amortization state aid under section 423A.02, subdivision 1b, paragraph (c), clause (3). 
10.17 	The employer contributions under this paragraph must be paid as provided in section 
10.18 	353.28 and are subject to the provisions of section 353.27, subdivisions 7, 7a, 7b, and 13.
10.19 		Subd. 8.Disposition of Virginia fire division account assets after final benefit 
10.20 	payment. On the first of the month next following the date of the death of the last eligible 
10.21 	beneficiary of the Virginia fire division, the assets of the Virginia fire division account 
10.22 	become assets of the city of Virginia and are either payable in a lump sum to the city of 
10.23 	Virginia or, with any accumulated investment performance, are credits against future 
10.24 	employer contributions of the city of Virginia to the general employees retirement plan of 
10.25 	the Public Employees Retirement Association and the public employees police and fire 
10.26 	retirement plan of the Public Employees Retirement Association, as the city council of 
10.27 	the city of Virginia directs by resolution.

10.28 	Sec. 11. Minnesota Statutes 2010, section 353.68, subdivision 1, is amended to read:
10.29 		Subdivision 1.Application. The general provisions of this chapter apply to all 
10.30 	police officers and firefighters who are members of the police and fire fund ~~and also~~, to all 
10.31 	governmental subdivisions employing such members, and to the Virginia fire division,
10.32 	except where otherwise specifically provided in sections 353.63 to 353.68. 

10.33 	Sec. 12. Minnesota Statutes 2010, section 356.20, subdivision 2, is amended to read:
11.1 		Subd. 2.Covered public pension plans and funds. This section applies to the 
11.2 	following public pension plans:
11.3 	(1) the general state employees retirement plan of the Minnesota State Retirement 
11.4 	System;
11.5 	(2) the general employees retirement plan of the Public Employees Retirement 
11.6 	Association, including the Minneapolis Employees Retirement Fund division;
11.7 	(3) the Teachers Retirement Association;
11.8 	(4) the State Patrol retirement plan;
11.9 	(5) the St. Paul Teachers Retirement Fund Association;
11.10 	(6) the Duluth Teachers Retirement Fund Association;
11.11 	(7) the University of Minnesota faculty retirement plan;
11.12 	(8) the University of Minnesota faculty supplemental retirement plan;
11.13 	(9) the judges retirement fund;
11.14 	(10) a police or firefighter's relief association specified or described in section 69.77, 
11.15 	subdivision 1a;
11.16 	(11) a volunteer firefighter relief association governed by section 69.771, subdivision 
11.17 	1;
11.18 	(12) the public employees police and fire plan of the Public Employees Retirement 
11.19 	Association, including the Virginia fire division;
11.20 	(13) the correctional state employees retirement plan of the Minnesota State 
11.21 	Retirement System;
11.22 	(14) the local government correctional service retirement plan of the Public 
11.23 	Employees Retirement Association; and
11.24 	(15) the voluntary statewide lump-sum volunteer firefighter retirement plan.

11.25 	Sec. 13. Minnesota Statutes 2010, section 356.214, subdivision 1, is amended to read:
11.26 		Subdivision 1.Actuary retention. (a) The governing board or managing or 
11.27 	administrative official of each public pension plan and retirement fund or plan enumerated 
11.28 	in paragraph (b) shall contract with an established actuarial consulting firm to conduct 
11.29 	annual actuarial valuations and related services. The principal from the actuarial 
11.30 	consulting firm on the contract must be an approved actuary under section 356.215, 
11.31 	subdivision 1, paragraph (c).
11.32 	(b) Actuarial services must include the preparation of actuarial valuations and 
11.33 	related actuarial work for the following retirement plans:
11.34 	(1) the teachers retirement plan, Teachers Retirement Association;
11.35 	(2) the general state employees retirement plan, Minnesota State Retirement System;
12.1 	(3) the correctional employees retirement plan, Minnesota State Retirement System;
12.2 	(4) the State Patrol retirement plan, Minnesota State Retirement System;
12.3 	(5) the judges retirement plan, Minnesota State Retirement System;
12.4 	(6) the general employees retirement plan, Public Employees Retirement 
12.5 	Association, including the MERF division;
12.6 	(7) the public employees police and fire plan, Public Employees Retirement 
12.7 	Association, including the Virginia fire division;
12.8 	(8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund 
12.9 	Association;
12.10 	(9) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund 
12.11 	Association;
12.12 	(10) the legislators retirement plan, Minnesota State Retirement System;
12.13 	(11) the elective state officers retirement plan, Minnesota State Retirement System; 
12.14 	and
12.15 	(12) local government correctional service retirement plan, Public Employees 
12.16 	Retirement Association.
12.17 	(c) The contracts must require completion of the annual actuarial valuation 
12.18 	calculations on a fiscal year basis, with the contents of the actuarial valuation calculations 
12.19 	as specified in section 356.215, and in conformity with the standards for actuarial work 
12.20 	adopted by the Legislative Commission on Pensions and Retirement.
12.21 	The contracts must require completion of annual experience data collection and 
12.22 	processing and a quadrennial published experience study for the plans listed in paragraph 
12.23 	(b), clauses (1), (2), and (6), as provided for in the standards for actuarial work adopted by 
12.24 	the commission. The experience data collection, processing, and analysis must evaluate 
12.25 	the following:
12.26 	(1) individual salary progression;
12.27 	(2) the rate of return on investments based on the current asset value;
12.28 	(3) payroll growth;
12.29 	(4) mortality;
12.30 	(5) retirement age;
12.31 	(6) withdrawal; and
12.32 	(7) disablement.
12.33 	(d) The actuary shall annually prepare a report to the governing or managing board 
12.34 	or administrative official and the legislature, summarizing the results of the actuarial 
12.35 	valuation calculations. The actuary shall include with the report any recommendations 
12.36 	concerning the appropriateness of the support rates to achieve proper funding of 
13.1 	the retirement plans by the required funding dates. The actuary shall, as part of the 
13.2 	quadrennial experience study, include recommendations on the appropriateness of the 
13.3 	actuarial valuation assumptions required for evaluation in the study.
13.4 	(e) If the actuarial gain and loss analysis in the actuarial valuation calculations 
13.5 	indicates a persistent pattern of sizable gains or losses, the governing or managing board 
13.6 	or administrative official shall direct the actuary to prepare a special experience study for 
13.7 	a plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), (10), (11), or (12), in the 
13.8 	manner provided for in the standards for actuarial work adopted by the commission.

13.9 	Sec. 14. Minnesota Statutes 2010, section 356.215, subdivision 8, is amended to read:
13.10 		Subd. 8.Interest and salary assumptions. (a) The actuarial valuation must use 
13.11 	the applicable following preretirement interest assumption and the applicable following 
13.12 	postretirement interest assumption:

13.13
13.14

13.15

plan

preretirement
interest rate
assumption

postretirement 
interest rate
assumption

13.16 | general state employees retirement plan | | 8.5% | 6.0%
13.17 | correctional state employees retirement plan | | 8.5 | 6.0
13.18 | State Patrol retirement plan | | 8.5 | 6.0
13.19 | legislators retirement plan | | 8.5 | 6.0
13.20 | elective state officers retirement plan | | 8.5 | 6.0
13.21 | judges retirement plan | | 8.5 | 6.0
13.22
13.23

13.24

general public employees retirement plan, 
including the Minneapolis Employees Retirement 
Fund division

8.5

6.0

13.25

13.26

public employees police and fire retirement plan, 
excluding the Virginia fire division

8.5

6.0

13.27

13.28

local government correctional service retirement 
plan

8.5

6.0

13.29 | teachers retirement plan | | 8.5 | 6.0
13.30 | Duluth teachers retirement plan | | 8.5 | 8.5
13.31 | St. Paul teachers retirement plan | | 8.5 | 8.5
13.32 | Minneapolis Police Relief Association | | 6.0 | 6.0
13.33 | Fairmont Police Relief Association | | 5.0 | 5.0
13.34 | Minneapolis Fire Department Relief Association | | 6.0 | 6.0
13.35
13.36

13.37

Virginia fire ~~Department Relief Association~~
division of the public employees police and fire 
retirement plan

~~5.0~~6.0

~~5.0~~6.0

13.38 | Bloomington Fire Department Relief Association | | 6.0 | 6.0
13.39

13.40

local monthly benefit volunteer firefighters relief 
associations

5.0

5.0

14.1 	(b) Before July 1, 2010, the actuarial valuation must use the applicable following 
14.2 	single rate future salary increase assumption, the applicable following modified single 
14.3 	rate future salary increase assumption, or the applicable following graded rate future 
14.4 	salary increase assumption:
14.5 	(1) single rate future salary increase assumption

14.6

14.7

plan

future salary
increase assumption

14.8 | legislators retirement plan | | 5.0%
14.9 | judges retirement plan | | 4.0
14.10 | Minneapolis Police Relief Association | | 4.0
14.11 | Fairmont Police Relief Association | | 3.5
14.12

14.13

Minneapolis Fire Department Relief 
Association

4.0

14.14
14.15

14.16

Virginia fire ~~Department Relief Association~~
division of the public employees police and fire 
retirement plan

3.5

14.17

14.18

Bloomington Fire Department Relief 
Association

4.0

14.19 	(2) age-related select and ultimate future salary increase assumption or graded rate 
14.20 	future salary increase assumption

14.21

14.22

plan

future salary
increase assumption

14.23

14.24

general state employees retirement plan

select calculation and 
assumption A

14.25 | correctional state employees retirement plan | assumption G
14.26 | State Patrol retirement plan | assumption F
14.27 | public employees police and fire fund retirement plan | assumption B
14.28 | local government correctional service retirement plan | assumption F
14.29 | teachers retirement plan | assumption C
14.30 | Duluth teachers retirement plan | assumption D
14.31 | St. Paul teachers retirement plan | assumption E
14.32 	The select calculation is: during the 
14.33 	designated select period, a designated 
14.34 	percentage rate is multiplied by the result 
14.35 	of the designated integer minus T, where 
14.36 	T is the number of completed years of 
14.37 	service, and is added to the applicable 
14.38 	future salary increase assumption. The 
14.39 	designated select period is five years and the 
14.40 	designated integer is five for the general state 
14.41 	employees retirement plan. The designated 
15.1 	select period is ten years and the designated 
15.2 	integer is ten for all other retirement plans 
15.3 	covered by this clause. The designated 
15.4 	percentage rate is: (1) 0.2 percent for the 
15.5 	correctional state employees retirement plan, 
15.6 	the State Patrol retirement plan, the public 
15.7 	employees police and fire plan, and the local 
15.8 	government correctional service plan; (2) 
15.9 	0.6 percent for the general state employees 
15.10 	retirement plan; and (3) 0.3 percent for the 
15.11 	teachers retirement plan, the Duluth Teachers 
15.12 	Retirement Fund Association, and the St. 
15.13 	Paul Teachers Retirement Fund Association. 
15.14 	The select calculation for the Duluth Teachers 
15.15 	Retirement Fund Association is 8.00 percent 
15.16 	per year for service years one through seven, 
15.17 	7.25 percent per year for service years seven 
15.18 	and eight, and 6.50 percent per year for 
15.19 	service years eight and nine.
15.20 	The ultimate future salary increase assumption is:

15.21 | age | A | B | C | D | E | F | G
15.22 | 16 | 5.95% | 11.00% | 7.70% | 8.00% | 6.90% | 7.7500% | 7.2500%
15.23 | 17 | 5.90 | 11.00 | 7.65 | 8.00 | 6.90 | 7.7500 | 7.2500
15.24 | 18 | 5.85 | 11.00 | 7.60 | 8.00 | 6.90 | 7.7500 | 7.2500
15.25 | 19 | 5.80 | 11.00 | 7.55 | 8.00 | 6.90 | 7.7500 | 7.2500
15.26 | 20 | 5.75 | 11.00 | 5.50 | 6.90 | 6.90 | 7.7500 | 7.2500
15.27 | 21 | 5.75 | 11.00 | 5.50 | 6.90 | 6.90 | 7.1454 | 6.6454
15.28 | 22 | 5.75 | 10.50 | 5.50 | 6.90 | 6.90 | 7.0725 | 6.5725
15.29 | 23 | 5.75 | 10.00 | 5.50 | 6.85 | 6.85 | 7.0544 | 6.5544
15.30 | 24 | 5.75 | 9.50 | 5.50 | 6.80 | 6.80 | 7.0363 | 6.5363
15.31 | 25 | 5.75 | 9.00 | 5.50 | 6.75 | 6.75 | 7.0000 | 6.5000
15.32 | 26 | 5.75 | 8.70 | 5.50 | 6.70 | 6.70 | 7.0000 | 6.5000
15.33 | 27 | 5.75 | 8.40 | 5.50 | 6.65 | 6.65 | 7.0000 | 6.5000
15.34 | 28 | 5.75 | 8.10 | 5.50 | 6.60 | 6.60 | 7.0000 | 6.5000
15.35 | 29 | 5.75 | 7.80 | 5.50 | 6.55 | 6.55 | 7.0000 | 6.5000
15.36 | 30 | 5.75 | 7.50 | 5.50 | 6.50 | 6.50 | 7.0000 | 6.5000
15.37 | 31 | 5.75 | 7.30 | 5.50 | 6.45 | 6.45 | 7.0000 | 6.5000
15.38 | 32 | 5.75 | 7.10 | 5.50 | 6.40 | 6.40 | 7.0000 | 6.5000
15.39 | 33 | 5.75 | 6.90 | 5.50 | 6.35 | 6.35 | 7.0000 | 6.5000
16.1 | 34 | 5.75 | 6.70 | 5.50 | 6.30 | 6.30 | 7.0000 | 6.5000
16.2 | 35 | 5.75 | 6.50 | 5.50 | 6.25 | 6.25 | 7.0000 | 6.5000
16.3 | 36 | 5.75 | 6.30 | 5.50 | 6.20 | 6.20 | 6.9019 | 6.4019
16.4 | 37 | 5.75 | 6.10 | 5.50 | 6.15 | 6.15 | 6.8074 | 6.3074
16.5 | 38 | 5.75 | 5.90 | 5.40 | 6.10 | 6.10 | 6.7125 | 6.2125
16.6 | 39 | 5.75 | 5.70 | 5.30 | 6.05 | 6.05 | 6.6054 | 6.1054
16.7 | 40 | 5.75 | 5.50 | 5.20 | 6.00 | 6.00 | 6.5000 | 6.0000
16.8 | 41 | 5.75 | 5.40 | 5.10 | 5.90 | 5.95 | 6.3540 | 5.8540
16.9 | 42 | 5.75 | 5.30 | 5.00 | 5.80 | 5.90 | 6.2087 | 5.7087
16.10 | 43 | 5.65 | 5.20 | 4.90 | 5.70 | 5.85 | 6.0622 | 5.5622
16.11 | 44 | 5.55 | 5.10 | 4.80 | 5.60 | 5.80 | 5.9048 | 5.4078
16.12 | 45 | 5.45 | 5.00 | 4.70 | 5.50 | 5.75 | 5.7500 | 5.2500
16.13 | 46 | 5.35 | 4.95 | 4.60 | 5.40 | 5.70 | 5.6940 | 5.1940
16.14 | 47 | 5.25 | 4.90 | 4.50 | 5.30 | 5.65 | 5.6375 | 5.1375
16.15 | 48 | 5.15 | 4.85 | 4.50 | 5.20 | 5.60 | 5.5822 | 5.0822
16.16 | 49 | 5.05 | 4.80 | 4.50 | 5.10 | 5.55 | 5.5404 | 5.0404
16.17 | 50 | 4.95 | 4.75 | 4.50 | 5.00 | 5.50 | 5.5000 | 5.0000
16.18 | 51 | 4.85 | 4.75 | 4.50 | 4.90 | 5.45 | 5.4384 | 4.9384
16.19 | 52 | 4.75 | 4.75 | 4.50 | 4.80 | 5.40 | 5.3776 | 4.8776
16.20 | 53 | 4.65 | 4.75 | 4.50 | 4.70 | 5.35 | 5.3167 | 4.8167
16.21 | 54 | 4.55 | 4.75 | 4.50 | 4.60 | 5.30 | 5.2826 | 4.7826
16.22 | 55 | 4.45 | 4.75 | 4.50 | 4.50 | 5.25 | 5.2500 | 4.7500
16.23 | 56 | 4.35 | 4.75 | 4.50 | 4.40 | 5.20 | 5.2500 | 4.7500
16.24 | 57 | 4.25 | 4.75 | 4.50 | 4.30 | 5.15 | 5.2500 | 4.7500
16.25 | 58 | 4.25 | 4.75 | 4.60 | 4.20 | 5.10 | 5.2500 | 4.7500
16.26 | 59 | 4.25 | 4.75 | 4.70 | 4.10 | 5.05 | 5.2500 | 4.7500
16.27 | 60 | 4.25 | 4.75 | 4.80 | 4.00 | 5.00 | 5.2500 | 4.7500
16.28 | 61 | 4.25 | 4.75 | 4.90 | 3.90 | 5.00 | 5.2500 | 4.7500
16.29 | 62 | 4.25 | 4.75 | 5.00 | 3.80 | 5.00 | 5.2500 | 4.7500
16.30 | 63 | 4.25 | 4.75 | 5.10 | 3.70 | 5.00 | 5.2500 | 4.7500
16.31 | 64 | 4.25 | 4.75 | 5.20 | 3.60 | 5.00 | 5.2500 | 4.7500
16.32 | 65 | 4.25 | 4.75 | 5.20 | 3.50 | 5.00 | 5.2500 | 4.7500
16.33 | 66 | 4.25 | 4.75 | 5.20 | 3.50 | 5.00 | 5.2500 | 4.7500
16.34 | 67 | 4.25 | 4.75 | 5.20 | 3.50 | 5.00 | 5.2500 | 4.7500
16.35 | 68 | 4.25 | 4.75 | 5.20 | 3.50 | 5.00 | 5.2500 | 4.7500
16.36 | 69 | 4.25 | 4.75 | 5.20 | 3.50 | 5.00 | 5.2500 | 4.7500
16.37 | 70 | 4.25 | 4.75 | 5.20 | 3.50 | 5.00 | 5.2500 | 4.7500
16.38 | 71 | 4.25 | | 5.20 | | | |
16.39 	(3) service-related ultimate future salary increase assumption

16.40

16.41

service length

general employees retirement plan of the Public Employees 
Retirement Association, including the MERF division

16.42 | 1 | 12.03%
16.43 | 2 | 8.90
17.1 | 3 | 7.46
17.2 | 4 | 6.58
17.3 | 5 | 5.97
17.4 | 6 | 5.52
17.5 | 7 | 5.16
17.6 | 8 | 4.87
17.7 | 9 | 4.63
17.8 | 10 | 4.42
17.9 | 11 | 4.24
17.10 | 12 | 4.08
17.11 | 13 | 3.94
17.12 | 14 | 3.82
17.13 | 15 | 3.70
17.14 | 16 | 3.60
17.15 | 17 | 3.51
17.16 | 18 | 3.50
17.17 | 19 | 3.50
17.18 | 20 | 3.50
17.19 | 21 | 3.50
17.20 | 22 | 3.50
17.21 | 23 | 3.50
17.22 | 24 | 3.50
17.23 | 25 | 3.50
17.24 | 26 | 3.50
17.25 | 27 | 3.50
17.26 | 28 | 3.50
17.27 | 29 | 3.50
17.28 | 30 or more | 3.50
17.29 	(c) Before July 2, 2010, the actuarial valuation must use the applicable following 
17.30 	payroll growth assumption for calculating the amortization requirement for the unfunded 
17.31 	actuarial accrued liability where the amortization retirement is calculated as a level 
17.32 	percentage of an increasing payroll:

17.33

17.34

plan

payroll growth
assumption

17.35 | general state employees retirement plan | | 4.50%
17.36 | correctional state employees retirement plan | | 4.50
17.37 | State Patrol retirement plan | | 4.50
17.38 | legislators retirement plan | | 4.50
17.39 | judges retirement plan | | 4.00
17.40
17.41

17.42

general employees retirement plan of the Public 
Employees Retirement Association, excluding the 
MERF division

4.00

18.1

18.2

public employees police and fire retirement plan, 
excluding the Virginia fire division

4.50

18.3

18.4

local government correctional service retirement 
plan

4.50

18.5 | teachers retirement plan | | 4.50
18.6 | Duluth teachers retirement plan | | 4.50
18.7 | St. Paul teachers retirement plan | | 5.00
18.8 	(d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to 
18.9 	apply, unless a different salary assumption or a different payroll increase assumption:
18.10 	(1) has been proposed by the governing board of the applicable retirement plan;
18.11 	(2) is accompanied by the concurring recommendation of the actuary retained under 
18.12 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the 
18.13 	most recent actuarial valuation report if section 356.214 does not apply; and
18.14 	(3) has been approved or deemed approved under subdivision 18.

18.15 	Sec. 15. Minnesota Statutes 2010, section 356.215, subdivision 11, is amended to read:
18.16 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating 
18.17 	the level normal cost, the actuarial valuation of the retirement plan must contain an 
18.18 	exhibit for financial reporting purposes indicating the additional annual contribution 
18.19 	sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit 
18.20 	for contribution determination purposes indicating the additional contribution sufficient 
18.21 	to amortize the unfunded actuarial accrued liability. For the retirement plans listed in 
18.22 	subdivision 8, paragraph (c), but excluding the MERF division of the Public Employees 
18.23 	Retirement Association and the Virginia fire division of the public employees police and 
18.24 	fire retirement plan, the additional contribution must be calculated on a level percentage of 
18.25 	covered payroll basis by the established date for full funding in effect when the valuation 
18.26 	is prepared, assuming annual payroll growth at the applicable percentage rate set forth in 
18.27 	subdivision 8, paragraph (c). For all other retirement plans, for the Virginia fire division of 
18.28 	the public employees police and fire retirement plan, and for the MERF division of the 
18.29 	Public Employees Retirement Association, the additional annual contribution must be 
18.30 	calculated on a level annual dollar amount basis.
18.31 	(b) For any retirement plan other than the general state employees retirement plan 
18.32 	of the Minnesota State Retirement System or a retirement plan governed by paragraph 
18.33 	(d), (e), (f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions 
18.34 	used for calculating the actuarial accrued liability of the fund, a change in the benefit 
18.35 	plan governing annuities and benefits payable from the fund, a change in the actuarial 
18.36 	cost method used in calculating the actuarial accrued liability of all or a portion of the 
19.1 	fund, or a combination of the three, which change or changes by itself or by themselves 
19.2 	without inclusion of any other items of increase or decrease produce a net increase in the 
19.3 	unfunded actuarial accrued liability of the fund, the established date for full funding is the 
19.4 	first actuarial valuation date occurring after June 1, 2020.
19.5 	(c) For any retirement plan other than the general employees retirement plan of the 
19.6 	Public Employees Retirement Association, if there has been a change in any or all of the 
19.7 	actuarial assumptions used for calculating the actuarial accrued liability of the fund, a 
19.8 	change in the benefit plan governing annuities and benefits payable from the fund, a 
19.9 	change in the actuarial cost method used in calculating the actuarial accrued liability of all 
19.10 	or a portion of the fund, or a combination of the three, and the change or changes, by itself 
19.11 	or by themselves and without inclusion of any other items of increase or decrease, produce 
19.12 	a net increase in the unfunded actuarial accrued liability in the fund, the established date 
19.13 	for full funding must be determined using the following procedure:
19.14 	(i) the unfunded actuarial accrued liability of the fund must be determined in 
19.15 	accordance with the plan provisions governing annuities and retirement benefits and the 
19.16 	actuarial assumptions in effect before an applicable change;
19.17 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
19.18 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
19.19 	(i) by the established date for full funding in effect before the change must be calculated 
19.20 	using the interest assumption specified in subdivision 8 in effect before the change;
19.21 	(iii) the unfunded actuarial accrued liability of the fund must be determined in 
19.22 	accordance with any new plan provisions governing annuities and benefits payable from 
19.23 	the fund and any new actuarial assumptions and the remaining plan provisions governing 
19.24 	annuities and benefits payable from the fund and actuarial assumptions in effect before 
19.25 	the change;
19.26 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
19.27 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
19.28 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
19.29 	under item (iii) over a period of 30 years from the end of the plan year in which the 
19.30 	applicable change is effective must be calculated using the applicable interest assumption 
19.31 	specified in subdivision 8 in effect after any applicable change;
19.32 	(v) the level annual dollar or level percentage amortization contribution under item 
19.33 	(iv) must be added to the level annual dollar amortization contribution or level percentage 
19.34 	calculated under item (ii);
19.35 	(vi) the period in which the unfunded actuarial accrued liability amount determined 
19.36 	in item (iii) is amortized by the total level annual dollar or level percentage amortization 
20.1 	contribution computed under item (v) must be calculated using the interest assumption 
20.2 	specified in subdivision 8 in effect after any applicable change, rounded to the nearest 
20.3 	integral number of years, but not to exceed 30 years from the end of the plan year in 
20.4 	which the determination of the established date for full funding using the procedure set 
20.5 	forth in this clause is made and not to be less than the period of years beginning in the 
20.6 	plan year in which the determination of the established date for full funding using the 
20.7 	procedure set forth in this clause is made and ending by the date for full funding in effect 
20.8 	before the change; and
20.9 	(vii) the period determined under item (vi) must be added to the date as of which 
20.10 	the actuarial valuation was prepared and the date obtained is the new established date 
20.11 	for full funding.
20.12 	(d) For the MERF division of the Public Employees Retirement Association, the 
20.13 	established date for full funding is June 30, 2031.
20.14 	(e) For the general employees retirement plan of the Public Employees Retirement 
20.15 	Association, the established date for full funding is June 30, 2031.
20.16 	(f) For the Teachers Retirement Association, the established date for full funding is 
20.17 	June 30, 2037.
20.18 	(g) For the correctional state employees retirement plan of the Minnesota State 
20.19 	Retirement System, the established date for full funding is June 30, 2038.
20.20 	(h) For the judges retirement plan, the established date for full funding is June 
20.21 	30, 2038.
20.22 	(i) For the public employees police and fire retirement plan, the established date 
20.23 	for full funding is June 30, 2038.
20.24 	(j) For the St. Paul Teachers Retirement Fund Association, the established date for 
20.25 	full funding is June 30 of the 25th year from the valuation date. In addition to other 
20.26 	requirements of this chapter, the annual actuarial valuation must contain an exhibit 
20.27 	indicating the funded ratio and the deficiency or sufficiency in annual contributions when 
20.28 	comparing liabilities to the market value of the assets of the fund as of the close of the 
20.29 	most recent fiscal year.
20.30 	(k) For the general state employees retirement plan of the Minnesota State 
20.31 	Retirement System, the established date for full funding is June 30, 2040.
20.32 	(l) For the Virginia fire division of the public employees police and fire retirement 
20.33 	plan, the established date for full funding is December 31, 2016.
20.34 	(m) For the retirement plans for which the annual actuarial valuation indicates 
20.35 	an excess of valuation assets over the actuarial accrued liability, the valuation assets in 
20.36 	excess of the actuarial accrued liability must be recognized as a reduction in the current 
21.1 	contribution requirements by an amount equal to the amortization of the excess expressed 
21.2 	as a level percentage of pay over a 30-year period beginning anew with each annual 
21.3 	actuarial valuation of the plan.

21.4 	Sec. 16. Minnesota Statutes 2010, section 356.401, subdivision 3, is amended to read:
21.5 		Subd. 3.Covered retirement plans. The provisions of this section apply to the 
21.6 	following retirement plans:
21.7 	(1) the legislators retirement plan, established by chapter 3A;
21.8 	(2) the general state employees retirement plan of the Minnesota State Retirement 
21.9 	System, established by chapter 352;
21.10 	(3) the correctional state employees retirement plan of the Minnesota State 
21.11 	Retirement System, established by chapter 352;
21.12 	(4) the State Patrol retirement plan, established by chapter 352B;
21.13 	(5) the elective state officers retirement plan, established by chapter 352C;
21.14 	(6) the unclassified state employees retirement program, established by chapter 
21.15 	352D;
21.16 	(7) the general employees retirement plan of the Public Employees Retirement 
21.17 	Association, established by chapter 353, including the MERF division of the Public 
21.18 	Employees Retirement Association;
21.19 	(8) the public employees police and fire plan of the Public Employees Retirement 
21.20 	Association, established by chapter 353, including the Virginia fire division of the public 
21.21 	employees police and fire plan;
21.22 	(9) the public employees defined contribution plan, established by chapter 353D;
21.23 	(10) the local government correctional service retirement plan of the Public 
21.24 	Employees Retirement Association, established by chapter 353E;
21.25 	(11) the voluntary statewide lump-sum volunteer firefighter retirement plan, 
21.26 	established by chapter 353G;
21.27 	(12) the Teachers Retirement Association, established by chapter 354;
21.28 	(13) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
21.29 	(14) the St. Paul Teachers Retirement Fund Association, established by chapter 
21.30 	354A;
21.31 	(15) the individual retirement account plan, established by chapter 354B;
21.32 	(16) the higher education supplemental retirement plan, established by chapter 354C;
21.33 	(17) the Minneapolis Police Relief Association, established by chapter 423B;
21.34 	(18) the Minneapolis Firefighters Relief Association, established by chapter 423C; 
21.35 	and
22.1 	(19) the judges retirement fund, established by chapter 490.

22.2 	Sec. 17. Minnesota Statutes 2010, section 356.407, subdivision 2, is amended to read:
22.3 		Subd. 2.Covered funds. The provisions of this section apply to the following 
22.4 	retirement funds:
22.5 	(1) the general employees retirement plan of the Public Employees Retirement 
22.6 	Association established under chapter 353, including the MERF division of the Public 
22.7 	Employees Retirement Association;
22.8 	(2) the public employees police and fire plan of the Public Employees Retirement 
22.9 	Association established under chapter 353, including the Virginia fire division of the 
22.10 	public employees police and fire plan;
22.11 	(3) the State Patrol retirement plan established under chapter 352B;
22.12 	(4) the legislators retirement plan established under chapter 3A;
22.13 	(5) the elective state officers retirement plan established under chapter 352C; and
22.14 	(6) the Teachers Retirement Association established under chapter 354.

22.15 	Sec. 18. Minnesota Statutes 2010, section 356.465, subdivision 3, is amended to read:
22.16 		Subd. 3.Covered retirement plans. The provisions of this section apply to the 
22.17 	following retirement plans:
22.18 	(1) the general state employees retirement plan of the Minnesota State Retirement 
22.19 	System established under chapter 352;
22.20 	(2) the correctional state employees retirement plan of the Minnesota State 
22.21 	Retirement System established under chapter 352;
22.22 	(3) the State Patrol retirement plan established under chapter 352B;
22.23 	(4) the legislators retirement plan established under chapter 3A;
22.24 	(5) the judges retirement plan established under chapter 490;
22.25 	(6) the general employees retirement plan of the Public Employees Retirement 
22.26 	Association established under chapter 353, including the MERF division of the Public 
22.27 	Employees Retirement Association;
22.28 	(7) the public employees police and fire plan of the Public Employees Retirement 
22.29 	Association established under chapter 353, including the Virginia fire division of the 
22.30 	public employees police and fire plan;
22.31 	(8) the teachers retirement plan established under chapter 354;
22.32 	(9) the Duluth Teachers Retirement Fund Association established under chapter 
22.33 	354A;
23.1 	(10) the St. Paul Teachers Retirement Fund Association established under chapter 
23.2 	354A;
23.3 	(11) the Minneapolis Firefighters Relief Association established under chapter 423C;
23.4 	(12) the Minneapolis Police Relief Association established under chapter 423B; and
23.5 	(13) the local government correctional service retirement plan of the Public 
23.6 	Employees Retirement Association established under chapter 353E.

23.7 	Sec. 19. Minnesota Statutes 2010, section 423A.02, subdivision 1b, is amended to read:
23.8 		Subd. 1b.Additional amortization state aid. (a) Annually, on October 1, the 
23.9 	commissioner of revenue shall allocate the additional amortization state aid transferred 
23.10 	under section 69.021, subdivision 11, to:
23.11 	(1) all police or salaried firefighters relief associations governed by and in full 
23.12 	compliance with the requirements of section 69.77, that had an unfunded actuarial accrued 
23.13 	liability in the actuarial valuation prepared under sections 356.215 and 356.216 as of the 
23.14 	preceding December 31;
23.15 	(2) all local police or salaried firefighter consolidation accounts governed by chapter 
23.16 	353A that are certified by the executive director of the public employees retirement 
23.17 	association as having for the current fiscal year an additional municipal contribution 
23.18 	amount under section 353A.09, subdivision 5, paragraph (b), and that have implemented 
23.19 	section 353A.083, subdivision 1, if the effective date of the consolidation preceded May 
23.20 	24, 1993, and that have implemented section 353A.083, subdivision 2, if the effective date 
23.21 	of the consolidation preceded June 1, 1995; and
23.22 	(3) the municipalities that are required to make an additional municipal contribution 
23.23 	under section 353.665, subdivision 8, for the duration of the required additional 
23.24 	contribution.
23.25 	(b) The commissioner shall allocate the state aid on the basis of the proportional share 
23.26 	of the relief association or consolidation account of the total unfunded actuarial accrued 
23.27 	liability of all recipient relief associations and consolidation accounts as of December 31, 
23.28 	1993, for relief associations, and as of June 30, 1994, for consolidation accounts.
23.29 	(c) Beginning October 1, 2000, and annually thereafter, the commissioner shall 
23.30 	allocate the state aid, including any state aid in excess of the limitation in subdivision 
23.31 	4, on the following basis:
23.32 	(1) 64.5 percent to the municipalities to which section 353.665, subdivision 
23.33 	8, paragraph (b), or 353A.09, subdivision 5, paragraph (b), apply for distribution in 
23.34 	accordance with paragraph (b) and subject to the limitation in subdivision 4;
24.1 	(2) 34.2 percent to the city of Minneapolis to fund any unfunded actuarial accrued 
24.2 	liability in the actuarial valuation prepared under sections 356.215 and 356.216 as of the 
24.3 	preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis 
24.4 	Fire Department Relief Association; and
24.5 	(3) 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued liability 
24.6 	in the actuarial valuation prepared under sections 356.215 and 356.216 as of the preceding 
24.7 	December 31 for the Virginia fire ~~Department Relief Association~~ division of the public 
24.8 	employees police and fire retirement plan.
24.9 	If there is no unfunded actuarial accrued liability in both the Minneapolis Police 
24.10 	Relief Association and the Minneapolis Fire Department Relief Association as disclosed 
24.11 	in the most recent actuarial valuations for the relief associations prepared under sections 
24.12 	356.215 and 356.216, the commissioner shall allocate that 34.2 percent of the aid as 
24.13 	follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul 
24.14 	Teachers Retirement Fund Association, and 30 percent as additional funding to support 
24.15 	minimum fire state aid for volunteer firefighters relief associations. If there is no unfunded 
24.16 	actuarial accrued liability in the Virginia Fire Department Relief Association as disclosed 
24.17 	in the most recent actuarial valuation for the relief association prepared under sections 
24.18 	356.215 and 356.216, the commissioner shall allocate that 1.3 percent of the aid as 
24.19 	follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul 
24.20 	Teachers Retirement Fund Association, and 30 percent as additional funding to support 
24.21 	minimum fire state aid for volunteer firefighters relief associations. Upon the final 
24.22 	payment to municipalities required by section 353.665, subdivision 8, paragraph (b), 
24.23 	or 353A.09, subdivision 5, paragraph (b), the commissioner shall allocate that 64.5 
24.24 	percent of the aid as follows: 20 percent to the St. Paul Teachers Retirement Fund 
24.25 	Association, 20 percent to the city of Minneapolis to fund any unfunded actuarial accrued 
24.26 	liability in the actuarial valuation proposed under sections 356.215 and 356.216 as of the 
24.27 	preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis 
24.28 	Firefighters Relief Association, 20 percent for the city of Duluth to pay for any costs 
24.29 	associated with the police and firefighters pensions, and 40 percent as additional funding to 
24.30 	support minimum fire state aid for volunteer firefighters relief associations. The allocation 
24.31 	must be made by the commissioner at the same time and under the same procedures 
24.32 	as specified in subdivision 3. With respect to the St. Paul Teachers Retirement Fund 
24.33 	Association, annually, beginning on July 1, 2005, if the applicable teacher's association 
24.34 	five-year average time-weighted rate of investment return does not equal or exceed the 
24.35 	performance of a composite portfolio assumed passively managed (indexed) invested ten 
24.36 	percent in cash equivalents, 60 percent in bonds and similar debt securities, and 30 percent 
25.1 	in domestic stock calculated using the formula under section 11A.04, clause (11), the aid 
25.2 	allocation to that retirement fund under this section ceases until the five-year annual rate 
25.3 	of investment return equals or exceeds the performance of that composite portfolio.
25.4 	(d) The amounts required under this subdivision are the amounts annually 
25.5 	appropriated to the commissioner of revenue under section 69.021, subdivision 11, 
25.6 	paragraph (e).

25.7 	Sec. 20. TERMINATION OF VIRGINIA RELIEF ASSOCIATION 
25.8 	SPECIAL FUND; CONTINUATION OF GENERAL FUND AS FRATERNAL 
25.9 	ORGANIZATION.
 25.10 		Subdivision 1.Special fund termination. Upon the transfer of the assets of the 
25.11 	Virginia Fire Department Relief Association special fund to the Public Employees 
25.12 	Retirement Association and the public employees police and fire retirement fund under 
25.13 	Minnesota Statutes, section 353.668, the special fund of the Virginia Fire Department 
25.14 	Relief Association ceases to exist as a Minnesota public pension fund and the Virginia 
25.15 	Fire Department Relief Association ceases to exist as a Minnesota public pension plan, 
25.16 	succeeded by the Virginia fire division of the public employees police and fire retirement 
25.17 	plan.
25.18 		Subd. 2.General fund status. If the board of trustees of the Virginia Fire 
25.19 	Department Relief Association so elects, the general fund of the Virginia Fire Department 
25.20 	Relief Association may continue as the sole fund of the corporation and the relief 
25.21 	association may continue solely as a fraternal organization. The board of trustees of the 
25.22 	relief association functioning solely as a fraternal organization must be composed solely 
25.23 	of former Virginia city firefighters or their survivors. The articles of incorporation and 
25.24 	bylaw provisions of the preconsolidation Virginia Fire Department Relief Association 
25.25 	relating to annual meetings, board of trustee functions, officer functions, and general 
25.26 	fund operations continue to govern.

25.27 	Sec. 21. EFFECTIVE DATE; LOCAL APPROVAL.
 25.28 	Sections 1 to 20 are effective the day after the governing body of the city of Virginia 
25.29 	and its chief clerical officer timely complete their compliance with Minnesota Statutes, 
25.30 	section 645.021, subdivisions 2 and 3.