1.1 	A bill for an act
1.2 	relating to retirement; legislators retirement plan;
1.3 	recodifying plan provisions; amending Minnesota
1.4 	Statutes 2004, sections 3A.01, subdivisions 1, 2, 6,
1.5 	8, by adding subdivisions; 3A.011; 3A.02, subdivisions
1.6 	1, 1b, 3, 4, 5; 3A.03, subdivisions 1, 2; 3A.04,
1.7 	subdivisions 1, 2, 3, 4, by adding a subdivision;
1.8 	3A.05; 3A.07; 3A.10, subdivision 1; 3A.12; 3A.13;
1.9 	repealing Minnesota Statutes 2004, sections 3A.01,
1.10 	subdivisions 3, 4, 6a, 7; 3A.02, subdivision 2; 3A.04,
1.11 	subdivision 1; 3A.09.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	Section 1. Minnesota Statutes 2004, section 3A.01,
1.14 	subdivision 1, is amended to read:
1.15 		Subdivision 1.Purposes. Each of the terms defined in
1.16 	this section,for the purposes of this chapter shall be
1.17 	given has the meanings meaning ascribed to them.

1.18 	Sec. 2. Minnesota Statutes 2004, section 3A.01, is amended
1.19 	by adding a subdivision to read:
1.20 		Subd. 1a.Actuarial equivalent. "Actuarial equivalent"
1.21 	means the condition of one allowance or benefit having an equal
1.22 	actuarial present value to another allowance or benefit,
1.23 	determined by the actuary retained under section 356.214 as of a
1.24 	given date at a specified age with each actuarial present value
1.25 	based on the mortality table applicable for the plan and
1.26 	approved under section 356.215, subdivision 18, and using the
1.27 	applicable preretirement or postretirement interest rate
1.28 	assumption specified in section 356.215, subdivision 8.

2.1 	Sec. 3. Minnesota Statutes 2004, section 3A.01, is amended
2.2 	by adding a subdivision to read:
2.3 		Subd. 1b.Average monthly salary. "Average monthly
2.4 	salary" means the average of the member's highest five
2.5 	successive years of salary that was received as a member of the
2.6 	legislature and upon which the member has made contributions
2.7 	under section 3A.03, subdivision 1, or for which the member of
2.8 	the legislature has made payments for past service under section
2.9 	3A.02, subdivision 2, or has made, before July 1, 1994, payments
2.10 	in lieu of contributions under Minnesota Statutes 1992, section
2.11 	3A.031.

2.12 	Sec. 4. Minnesota Statutes 2004, section 3A.01, is amended
2.13 	by adding a subdivision to read:
2.14 		Subd. 1c.Constitutional officer. "Constitutional
2.15 	officer" means a person who was duly elected, qualifies for, and
2.16 	serves as the governor, the lieutenant governor, the attorney
2.17 	general, the secretary of state, or the state auditor of the
2.18 	state of Minnesota.

2.19 	Sec. 5. Minnesota Statutes 2004, section 3A.01,
2.20 	subdivision 2, is amended to read:
2.21 		Subd. 2.Dependent child. (a) "Dependent child" means
2.22 	any natural or adopted child of a deceased member of the
2.23 	legislature or a former legislator who is under the age of 18,
2.24 	or who is under the age of 22 and is a full-time student, and
2.25 	who,in either case,is unmarried and was actually dependent for
2.26 	more than one-half of support upon such the legislator for a
2.27 	period of at least 90 days immediately prior to before the
2.28 	legislator's death. It 
2.29 	(b) The term also includes any child of the member of the
2.30 	legislature or former legislator who was conceived during the
2.31 	lifetime of, and who was born after the death of, the member or
2.32 	former legislator. This subdivision shall be retroactive as to
2.33 	any dependent child under the age of 22 years as of April 1,
2.34 	1975.

2.35 	Sec. 6. Minnesota Statutes 2004, section 3A.01,
2.36 	subdivision 6, is amended to read:
3.1 		Subd. 6.Director.  "Director" means the executive
3.2 	director of the Minnesota State Retirement System who was
3.3 	appointed under section 352.03, subdivision 5.

3.4 	Sec. 7. Minnesota Statutes 2004, section 3A.01, is amended
3.5 	by adding a subdivision to read:
3.6 		Subd. 6b.Former legislator. "Former legislator" means a
3.7 	legislator who has ceased to be a member of the legislature for
3.8 	any reason, including, but not limited to, the expiration of the
3.9 	term for which a member of the legislature was elected or the
3.10 	death of the member.

3.11 	Sec. 8. Minnesota Statutes 2004, section 3A.01, is amended
3.12 	by adding a subdivision to read:
3.13 		Subd. 6c.Member of the legislature. "Member of the
3.14 	legislature" means a person who was a member of the House of
3.15 	Representatives or of the Senate of the state of Minnesota who
3.16 	has subscribed to the oath of office after July 1, 1965, and who
3.17 	was first elected to a legislative office before July 1, 1997,
3.18 	and retained coverage by the plan under Laws 1997, chapter 233,
3.19 	article 2, section 15.

3.20 	Sec. 9. Minnesota Statutes 2004, section 3A.01,
3.21 	subdivision 8, is amended to read:
3.22 		Subd. 8.Normal retirement age.  "Normal retirement age"
3.23 	means the age of 60 years with regard to any member of the
3.24 	legislature whose service terminates prior to the beginning of
3.25 	the 1981 legislative session, and the age of 62 years with
3.26 	regard to any member of the legislature whose service terminates
3.27 	after the beginning of the 1981 session.

3.28 	Sec. 10. Minnesota Statutes 2004, section 3A.01, is
3.29 	amended by adding a subdivision to read:
3.30 		Subd. 9.Retirement. "Retirement" means the period of
3.31 	time after which a former legislator is entitled to a retirement
3.32 	allowance.

3.33 	Sec. 11. Minnesota Statutes 2004, section 3A.01, is
3.34 	amended by adding a subdivision to read:
3.35 		Subd. 10.Salary. (a) "Salary" means the regular
3.36 	compensation payable under law to a member of the legislature
4.1 	and paid to the person for service as a legislator.
4.2 	(b) The term includes the monthly compensation paid to the
4.3 	member of the legislature and the per diem payments paid during
4.4 	a regular or special session to the member of the legislature.
4.5 	(c) The term does not include per diem payments paid to a
4.6 	member of the legislature other than during the regular or
4.7 	special session; additional compensation attributable to a
4.8 	leadership position under section 3.099, subdivision 3; living
4.9 	expense payments under section 3.101; and special session living
4.10 	expense payments under section 3.103.

4.11 	Sec. 12. Minnesota Statutes 2004, section 3A.011, is
4.12 	amended to read:
4.13 	3A.011 ADMINISTRATION OF PLAN.
4.14 	The executive director and the board of directors of the 
4.15 	Minnesota State Retirement System shall administer the
4.16 	legislators retirement plan in accordance with this chapter and 
4.17 	chapter 356A.

4.18 	Sec. 13. Minnesota Statutes 2004, section 3A.02,
4.19 	subdivision 1, is amended to read:
4.20 		Subdivision 1.Qualifications.  (a) A former legislator
4.21 	is entitled, upon written application to the director, to
4.22 	receive a retirement allowance monthly, if the person:
4.23 	(1) has either served at least six full years, without
4.24 	regard to the application of section 3A.10, subdivision 2, or
4.25 	has served during all or part of four regular sessions as a
4.26 	member of the legislature, which service need not be continuous;
4.27 	(2) has attained the normal retirement age;
4.28 	(3) has retired as a member of the legislature; and
4.29 	(4) has made all contributions provided for in section
4.30 	3A.03, has made payments for past service under subdivision 2,
4.31 	or has made payments in lieu of contributions under Minnesota
4.32 	Statutes 1992, section 3A.031, prior to before July 1, 1994.
4.33 	(b) This paragraph applies to members of the legislature
4.34 	who terminate service as a legislator before July 1, 1997.  For
4.35 	service rendered before the beginning of the 1979 legislative
4.36 	session, but not to exceed eight years of service, the
5.1 	retirement allowance is an amount equal to five percent per year
5.2 	of service of that member's average monthly salary.  For service
5.3 	in excess of eight years rendered before the beginning of the
5.4 	1979 legislative session, and for service rendered after the
5.5 	beginning of the 1979 legislative session,Unless the former
5.6 	legislator has legislative service before January 1, 1979,the
5.7 	retirement allowance is an amount equal to 2-1/2 percent per
5.8 	year of service of that member's average monthly salary.
5.9 	(c) This paragraph applies to members of the legislature
5.10 	who terminate service as a legislator after June 30, 1997.  The
5.11 	retirement allowance is an amount equal to the applicable rate
5.12 	or rates under paragraph (b) per year of service of the member's
5.13 	average monthly salary and adjusted for that person on an
5.14 	actuarial equivalent basis to reflect the change in the
5.15 	postretirement interest rate actuarial assumption under section
5.16 	356.215, subdivision 8, from five percent to six percent.  The
5.17 	adjustment must be calculated by or, alternatively, the
5.18 	adjustment procedure must be specified by, the actuary retained
5.19 	by the Legislative Commission on Pensions and Retirement under
5.20 	section 356.214.  The purpose of this adjustment is to ensure
5.21 	that the total amount of benefits that the actuary predicts an
5.22 	individual member will receive over the member's lifetime under
5.23 	this paragraph will be the same as the total amount of benefits
5.24 	the actuary predicts the individual member would receive over
5.25 	the member's lifetime under the law in effect before enactment
5.26 	of this paragraph. If the former legislator has legislative
5.27 	service before January 1, 1979, the person's benefit must
5.28 	include the additional benefit amount in effect on January 1,
5.29 	1979, and adjusted as otherwise provided in this paragraph.
5.30 	(d) (c) The retirement allowance accrues beginning with the
5.31 	first day of the month of receipt of the application, but not
5.32 	before age 60, and for the remainder of the former legislator's
5.33 	life, if the former legislator is not serving as a member of the
5.34 	legislature or as a constitutional officer or commissioner as
5.35 	defined in section 352C.021, subdivisions 2 and 3 subdivision 1b.
5.36 	The annuity does not begin to accrue prior to before the
6.1 	person's retirement as a legislator.  No annuity payment may be
6.2 	made retroactive for more than 180 days before the date that the
6.3 	annuity application is filed with the director.
6.4 	(e) (d) Any member who has served during all or part of
6.5 	four regular sessions is considered to have served eight years
6.6 	as a member of the legislature.
6.7 	(f) (e) The retirement allowance ceases with the last
6.8 	payment that accrued to the retired legislator during the
6.9 	retired legislator's lifetime, except that the surviving spouse,
6.10 	if any, is entitled to receive the retirement allowance of the
6.11 	retired legislator for the calendar month in which the retired
6.12 	legislator died.

6.13 	Sec. 14. Minnesota Statutes 2004, section 3A.02,
6.14 	subdivision 1b, is amended to read:
6.15 		Subd. 1b.Reduced retirement allowance.  (a) Upon
6.16 	separation from service after the beginning of the 1981
6.17 	legislative session, a former member of the legislature who has
6.18 	attained the age set by the board of directors of the Minnesota
6.19 	State Retirement System and who is otherwise qualified in
6.20 	accordance with under subdivision 1 is entitled,upon making
6.21 	written application on forms supplied a form prescribed by the
6.22 	director,to a reduced retirement allowance in .  The reduced
6.23 	retirement allowance is an amount equal to the retirement
6.24 	allowance specified in subdivision 1, paragraph (b), that is 
6.25 	reduced so that the reduced annuity allowance is the actuarial
6.26 	equivalent of the annuity allowance that would be payable if the
6.27 	former member of the legislature deferred receipt of the annuity 
6.28 	allowance and the annuity allowance amount were was augmented
6.29 	at an annual rate of three percent compounded annually from the
6.30 	date the annuity allowance begins to accrue until age 62.
6.31 	(b) The age set by the board of directors under paragraph
6.32 	(a) cannot be less an earlier age than the early retirement age
6.33 	under section 352.116, subdivision 1a.
6.34 	(c) If there is an actuarial cost to the plan of resetting
6.35 	the early retirement age under paragraph (a), the retired
6.36 	legislator is required to pay an additional amount to cover the
7.1 	full actuarial value.  The additional amount must be paid in a
7.2 	lump sum within 30 days of the certification of the amount by
7.3 	the executive director.
7.4 	(d) The executive director of the Minnesota State
7.5 	Retirement System shall report to the Legislative Commission on
7.6 	Pensions and Retirement on the utilization of this
7.7 	provision annually on or before September 1, 2000.

7.8 	Sec. 15. Minnesota Statutes 2004, section 3A.02,
7.9 	subdivision 3, is amended to read:
7.10 		Subd. 3.Appropriation.  The amounts required for payment
7.11 	of retirement allowances provided by this section are
7.12 	appropriated annually to the director from the participation of
7.13 	the legislators retirement plan in the Minnesota postretirement
7.14 	investment fund and shall .  The retirement allowance must be
7.15 	paid monthly to the recipients entitled thereto to those
7.16 	retirement allowances.

7.17 	Sec. 16. Minnesota Statutes 2004, section 3A.02,
7.18 	subdivision 4, is amended to read:
7.19 		Subd. 4.Deferred annuities augmentation.  (a) The
7.20 	deferred annuity retirement allowance of any former legislator
7.21 	must be augmented as provided herein.
7.22 	(b) The required reserves applicable to the
7.23 	deferred annuity retirement allowance, determined as of the date
7.24 	the benefit begins to accrue using an appropriate mortality
7.25 	table and an interest assumption of six percent, must be
7.26 	augmented from the first of the month following the termination
7.27 	of active service, or July 1, 1973, whichever is later, to the
7.28 	first day of the month in which the annuity allowance begins to
7.29 	accrue, at the following annually compounded rate of or rates:
7.30 	five percent per annum compounded annually until January 1,
7.31 	1981, and thereafter at the rate of three percent per annum
7.32 	compounded annually until January 1 of the year in which the
7.33 	former legislator attains age 55.  From that date to the
7.34 	effective date of retirement, the rate is five percent
7.35 	compounded annually.
7.36 	rate period
8.1 	     (1) five percent until January 1, 1981 
8.2 	(2) three percent from January 1, 1981, or from the
8.3 	                          first day of the month following
8.4 	                          the termination of active service,
8.5 	                          whichever is later, until January 1
8.6 	                          of the year in which the former
8.7 	                          legislator attains age 55
8.9 	     (3) five percent from the period end date under
8.10 	                          clause (2) to the effective date
8.11 	                          of retirement.
8.12 	(b) The retirement allowance of, or the survivor benefit
8.13 	payable on behalf of, a former member of the legislature who
8.14 	terminated service before July 1, 1997, which is not first
8.15 	payable until after June 30, 1997, must be increased on an
8.16 	actuarial equivalent basis to reflect the change in the
8.17 	postretirement interest rate actuarial assumption under section
8.18 	356.215, subdivision 8, from five percent to six percent under a
8.19 	calculation procedure and tables adopted by the board of
8.20 	directors of the Minnesota State Retirement System and approved
8.21 	by the actuary retained by the Legislative Commission on
8.22 	Pensions and Retirement.

8.23 	Sec. 17. Minnesota Statutes 2004, section 3A.02,
8.24 	subdivision 5, is amended to read:
8.25 		Subd. 5.Optional annuities.  (a) The board of directors
8.26 	shall establish an optional retirement annuity in the form of a
8.27 	joint and survivor annuity and an optional retirement annuity in
8.28 	the form of a period certain and life thereafter.  Except as
8.29 	provided in paragraph (b), these optional annuity forms must be
8.30 	actuarially equivalent to the normal annuity allowance computed
8.31 	under this section, plus the actuarial value of any surviving
8.32 	spouse benefit otherwise potentially payable at the time of
8.33 	retirement under section 3A.04, subdivision 1.  An individual
8.34 	selecting an optional annuity under this subdivision waives and
8.35 	the person's spouse waive any rights to surviving spouse
8.36 	benefits under section 3A.04, subdivision 1.
9.1 	(b) If a retired legislator selects the joint and survivor
9.2 	annuity option, the retired legislator must receive a normal
9.3 	single-life annuity allowance if the designated optional annuity
9.4 	beneficiary dies before the retired legislator and no reduction
9.5 	may be made in the annuity to provide for restoration of the
9.6 	normal single-life annuity allowance in the event of the death
9.7 	of the designated optional annuity beneficiary.
9.8 	(c) The surviving spouse of a legislator who has attained
9.9 	at least age 60 and who dies while a member of the legislature
9.10 	may elect an optional joint and survivor annuity under paragraph
9.11 	(a), in lieu of surviving spouse benefits under section 3A.04,
9.12 	subdivision 1.

9.13 	Sec. 18. Minnesota Statutes 2004, section 3A.03,
9.14 	subdivision 1, is amended to read:
9.15 		Subdivision 1.Percentage. (a) Every member of the
9.16 	legislature shall contribute nine percent of total salary,.
9.17 	(b) The contribution must be made by payroll deduction,
9.18 	to and must be paid into the state treasury and deposited in the
9.19 	general fund. It shall be the duty of 
9.20 	(c) The director to must record the periodic contributions
9.21 	of each member of the legislature and must credit such each 
9.22 	contribution to the member's account.

9.23 	Sec. 19. Minnesota Statutes 2004, section 3A.03,
9.24 	subdivision 2, is amended to read:
9.25 		Subd. 2.Refund.  (a) A former member who has made
9.26 	contributions under subdivision 1 and who is no longer a member
9.27 	of the legislature is entitled to receive, upon written
9.28 	application to the executive director on a form prescribed by
9.29 	the executive director, a refund from the general fund of all
9.30 	contributions credited to the member's account with interest
9.31 	computed as provided in section 352.22, subdivision 2.
9.32 	(b) The refund of contributions as provided in paragraph (a)
9.33 	terminates all rights of a former member of the legislature and
9.34 	the survivors of the former member under this chapter.
9.35 	(c) If the former member of the legislature again becomes a
9.36 	member of the legislature after having taken a refund as
10.1 	provided in paragraph (a), the member must be considered is a
10.2 	new member of this plan the unclassified employees retirement
10.3 	program of the Minnesota State Retirement System.
10.4 	(d) However, the member may reinstate the rights and credit
10.5 	for service previously forfeited under this chapter if the
10.6 	member repays all refunds taken,plus interest at an annual rate
10.7 	of 8.5 percent compounded annually from the date on which the
10.8 	refund was taken to the date on which the refund is repaid.
10.9 	(d) (e) No person may be required to apply for or to accept
10.10 	a refund.

10.11 	Sec. 20. Minnesota Statutes 2004, section 3A.04,
10.12 	subdivision 1, is amended to read:
10.13 		Subdivision 1.Surviving spouse. (a) Upon the death of a
10.14 	member of the legislature while serving as such a member after
10.15 	June 30, 1973, or upon the death of a former member of the
10.16 	legislature with at least the number of six full years of
10.17 	service as required by section 3A.02, subdivision 1, clause
10.18 	(1) or service in all or part of four regular legislative
10.19 	sessions, the surviving spouse shall be paid is entitled to a
10.20 	survivor benefit in the amount of .
10.21 	(b) The surviving spouse benefit is one-half of the
10.22 	retirement allowance of the member of the legislature computed
10.23 	as though the member were at least normal retirement age on the
10.24 	date of death and based upon the member's allowable service
10.25 	or upon eight years,whichever is greater.  The augmentation
10.26 	provided in section 3A.02, subdivision 4, if applicable, shall 
10.27 	must be applied for the period up to, and including,the month
10.28 	of death.
10.29 	(c) Upon the death of a former legislator receiving a
10.30 	retirement allowance, the surviving spouse shall be is entitled
10.31 	to one-half of the amount of the retirement allowance being paid
10.32 	to the legislator. Such 
10.33 	(d) The surviving spouse benefit shall be paid during is
10.34 	payable for the lifetime of the surviving spouse.

10.35 	Sec. 21. Minnesota Statutes 2004, section 3A.04,
10.36 	subdivision 2, is amended to read:
11.1 		Subd. 2.Dependent children. (a) Upon the death of a
11.2 	member of the legislature while serving as a member, or upon the
11.3 	death of a former member of the legislature who has rendered at
11.4 	least the number of six full years of service as required by
11.5 	section 3A.02, subdivision 1, clause (1) or service in all or
11.6 	part of four regular legislative sessions and who was not
11.7 	receiving a retirement allowance, each dependent child of the
11.8 	member or former legislator shall be is entitled to receive a
11.9 	survivor benefit in the following amount:
11.10 	(1) for the first dependent child, a monthly allowance
11.11 	which equals benefit equal to 25 percent of the monthly
11.12 	retirement allowance of the member of the legislature or the 
11.13 	former legislator computed as though the member or the former
11.14 	legislator had attained at least the normal retirement age on
11.15 	the date of death and based upon the average monthly salary as
11.16 	of the date of death or as of the date of termination, whichever
11.17 	is applicable applies, and the member's allowable service or
11.18 	eight years,whichever is greater;
11.19 	(2) for each additional dependent child, a monthly
11.20 	allowance which equals benefit equal to 12-1/2 percent of the
11.21 	monthly retirement allowance of the member or the former
11.22 	legislator computed as provided in the case of the first child 
11.23 	clause (1); but and 
11.24 	(3) the total amount paid to the surviving spouse and to
11.25 	the dependent child or children shall may not exceed,in any
11.26 	one month,100 percent of the monthly retirement allowance of
11.27 	the member or of the former legislator computed as provided in
11.28 	the case of the first child clause (1).
11.29 	(b) The augmentation provided in section 3A.02, subdivision
11.30 	4, if applicable, shall be applied applies from the first day of
11.31 	the month next following the date of the termination of the
11.32 	person from service as a member of the legislature to the month
11.33 	of the death of the person.
11.34 	(c) Upon the death of a former legislator who was receiving
11.35 	a retirement allowance, the a surviving dependent child shall be 
11.36 	is entitled to the applicable percentage specified above in
12.1 	paragraph (a), clause (1) or (2), whichever applies,of the
12.2 	amount of the allowance which was paid to the former legislator
12.3 	for the month immediately prior to before the date of death of
12.4 	the former legislator.
12.5 	(d) The payments for dependent children shall must be made
12.6 	to the surviving spouse or to the guardian of the estate of the
12.7 	dependent children, if there is one.

12.8 	Sec. 22. Minnesota Statutes 2004, section 3A.04,
12.9 	subdivision 3, is amended to read:
12.10 		Subd. 3.Payment.  The surviving spouse's spouse and
12.11 	dependent children's child or children survivor benefits payable
12.12 	under this section shall be paid are payable by the director
12.13 	monthly in the same manner as retirement allowances are
12.14 	authorized to be paid by this chapter.

12.15 	Sec. 23. Minnesota Statutes 2004, section 3A.04,
12.16 	subdivision 4, is amended to read:
12.17 		Subd. 4.Death refunds. (a) Upon the death of a member
12.18 	of the legislature or of a former legislator who was not
12.19 	receiving a retirement allowance,without leaving either a
12.20 	surviving spouse or a dependent child or dependent children, the
12.21 	last designated beneficiary named on a form that was filed with
12.22 	the director before the death of the legislator, or if no
12.23 	designation is filed, the estate of the member or the former
12.24 	legislator, upon application, shall be is entitled to a refund.
12.25 	(b) The refund is the amount of contributions credited to
12.26 	the person's account plus interest as provided in section 3A.03,
12.27 	subdivision 2, clause (2) paragraph (a).

12.28 	Sec. 24. Minnesota Statutes 2004, section 3A.04, is
12.29 	amended by adding a subdivision to read:
12.30 		Subd. 5.Appropriation. The survivor benefits and the
12.31 	death refunds authorized by this section are appropriated to the
12.32 	director from the general fund when they are due and payable.

12.33 	Sec. 25. Minnesota Statutes 2004, section 3A.05, is
12.34 	amended to read:
12.35 	3A.05 APPLICATION FOR SURVIVOR BENEFIT.
12.36 	(a) Applications for survivor benefits pursuant to under 
13.1 	section 3A.04shall must be filed with the director by the
13.2 	surviving spouse and dependent child or children entitled to
13.3 	benefits pursuant to under section 3A.04, or by the guardian of
13.4 	the estate, if there is one, of the dependent child or children.
13.5 	(b) Survivor benefits shall accrue as of the first day of
13.6 	the month following the death of the member of the legislature
13.7 	or former legislator and payments shall commence as of the first
13.8 	of the month next following the filing of the application,
13.9 	and shall be are retroactive to the date the benefit accrues;
13.10 	provided, however, that no payment shall be retroactive for more
13.11 	than or the first of the month occurring 12 months prior
13.12 	to before the month in which the application is filed with the
13.13 	director, whichever is earlier.

13.14 	Sec. 26. Minnesota Statutes 2004, section 3A.07, is
13.15 	amended to read:
13.16 	3A.07 APPLICATION.
13.17 	(a) Except as provided in paragraph (b), this chapter
13.18 	applies to members of the legislature in service after July 1,
13.19 	1965, who otherwise meet the requirements of this chapter.
13.20 	(b) Members of the legislature who were elected for the
13.21 	first time after June 30, 1997, or members of the legislature
13.22 	who were elected before July 1, 1997, and who, after July 1,
13.23 	1998, elect not to be members of the plan established by this
13.24 	chapter are covered by the unclassified employees retirement
13.25 	program governed by chapter 352D.
13.26 	(c) The post-July 1, 1998, coverage election under
13.27 	paragraph (b) is irrevocable and must be made on a form
13.28 	prescribed by the director. The second chance referendum
13.29 	election under Laws 2002, chapter 392, article 15, also is
13.30 	irrevocable.

13.31 	Sec. 27. Minnesota Statutes 2004, section 3A.10,
13.32 	subdivision 1, is amended to read:
13.33 		Subdivision 1.Service credit for legislative term. (a) 
13.34 	In the case of a member of the house of representatives,one
13.35 	full term of office shall must be considered two full years of 
13.36 	service,notwithstanding the fact that the oath of office may be 
14.1 	was taken on different days each biennium.
14.2 	(b) In the case of a member of the senate, one full term of
14.3 	office shall must be considered four full years of service,
14.4 	notwithstanding the fact that the oath of office may be was 
14.5 	taken on different days at the start of each term.
14.6 	(c) For purposes of this chapter, a legislative term shall 
14.7 	must be deemed to commence on January 1st 1 and to end on
14.8 	December 31st 31.

14.9 	Sec. 28. Minnesota Statutes 2004, section 3A.12, is
14.10 	amended to read:
14.11 	3A.12 COVERAGE BY MORE THAN ONE RETIREMENT SYSTEM OR
14.12 	ASSOCIATION.
14.13 		Subdivision 1.Entitlement to annuity. (a) Any
14.14 	legislator who has been an employee covered by a member of a
14.15 	retirement plan listed in paragraph (b) is entitled, when
14.16 	otherwise qualified, to a retirement allowance or annuity from
14.17 	each plan if the total allowable service in all plans or in any
14.18 	two of these plans totals ten or more years.
14.19 	(b) This section applies to any retirement plan or program
14.20 	administered by the Minnesota State Retirement System, or a
14.21 	member of any retirement plan administered by the Public
14.22 	Employees Retirement Association,including the Public Employees
14.23 	Retirement Association police and fire fund, or the Teachers
14.24 	Retirement Association, or the Minneapolis employees
14.25 	retirement Fund plan, or the State Patrol retirement fund plan,
14.26 	or any other public employee retirement system in the state of
14.27 	Minnesota having a like provision but excluding all .
14.28 	(c) This section does not apply to other funds retirement
14.29 	plans providing benefits for police or firefighters, shall be
14.30 	entitled when qualified to an annuity from each fund if the
14.31 	total allowable service for which the legislator has credit in
14.32 	all funds or in any two of these funds totals ten or more years,
14.33 	provided .
14.34 	(d) No portion of the allowable service upon which the
14.35 	retirement annuity from one fund plan is based is again used in
14.36 	the computation for benefits from another fund plan.  The
15.1 	annuity from each fund shall plan must be determined by the
15.2 	appropriate provisions of the law,except that the requirement
15.3 	that a person must have at least ten a minimum number of years
15.4 	of allowable service in the respective system or
15.5 	association shall does not apply for the purposes of this
15.6 	section provided if the combined service in two or more of these
15.7 	funds plans equals ten or more years.  The augmentation of
15.8 	deferred annuities provided in section 3A.02, subdivision
15.9 	4, shall apply applies to the annuities accruing hereunder under
15.10 	this section.
15.11 		Subd. 2.Refund repayment. Any A former legislator who
15.12 	has received a refund as provided in section 3A.03, subdivision
15.13 	2, who is a currently contributing member of a retirement fund 
15.14 	plan specified in subdivision 1, paragraph (b), may repay the
15.15 	refund as provided in section 3A.03, subdivision 2. Any A 
15.16 	member of the legislature who has received a refund from any of
15.17 	the funds retirement plans specified in subdivision 1,may repay
15.18 	the refund to the respective fund plan under such terms and
15.19 	conditions consistent with the law governing such fund the
15.20 	retirement plan if the law governing such fund the plan permits
15.21 	the repayment of refunds.  If the total amount to be repaid,
15.22 	including principal and interest exceeds $2,000, repayment may
15.23 	be made in three equal installments over a period of 18 months,
15.24 	with the interest accrued during the period of the repayment
15.25 	added to the final installment.

15.26 	Sec. 29. Minnesota Statutes 2004, section 3A.13, is
15.27 	amended to read:
15.28 	3A.13 EXEMPTION FROM PROCESS AND TAXATION; HEALTH PREMIUM
15.29 	DEDUCTION.
15.30 	(a) The provisions of section 352.15shall apply to the
15.31 	legislators retirement plan, chapter 3A.
15.32 	(b) The executive director of the Minnesota State
15.33 	Retirement System must, at the request of a retired legislator
15.34 	who is enrolled in a health insurance plan covering state
15.35 	employees, deduct the person's health insurance premiums from
15.36 	the person's annuity and transfer the amount of the premium to a
16.1 	health insurance carrier covering state employees.

16.2 	Sec. 30. REPEALER.
 16.3 	Minnesota Statutes 2004, sections 3A.01, subdivisions 3, 4,
16.4 	6a, and 7; 3A.02, subdivision 2; 3A.04, subdivision 1; and
16.5 	3A.09, are repealed.

16.6 	Sec. 31. EFFECTIVE DATE.
 16.7 	Sections 1 to 30 are effective on July 1, 2005.