1.1 	A bill for an act
1.2 	relating to retirement; Minnesota State Retirement System financial solvency 
1.3 	measures; increasing employee and employer contribution rates; reducing certain 
1.4 	postretirement adjustment increase rates; modifying the investment return actuarial 
1.5 	assumption; extending the amortization target date; amending Minnesota Statutes 
1.6 	2016, sections 3A.03, subdivision 2; 352.01, subdivision 13a; 352.017, subdivision 
1.7 	2; 352.04, subdivisions 2, 3, 8, 9; 352.23; 352.27; 352.92, subdivisions 1, 2, by 
1.8 	adding a subdivision; 352.955, subdivision 3; 352B.013, subdivision 2; 352B.02, 
1.9 	subdivisions 1a, 1c; 352B.085; 352B.086; 352B.11, subdivision 4; 352D.05, 
1.10 	subdivision 4; 352D.11, subdivision 2; 352D.12; 356.215, subdivisions 8, 11; 
1.11 	356.415, subdivisions 1a, 1e, 1f; 490.121, subdivision 4; 490.1211; 490.124, 
1.12 	subdivision 12; proposing coding for new law in Minnesota Statutes, chapter 356; 
1.13 	repealing Minnesota Statutes 2016, section 356.415, subdivision 1.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15 	Section 1. Minnesota Statutes 2016, section 3A.03, subdivision 2, is amended to read:
1.16 		Subd. 2.Refund.  (a) A former member who has made contributions under subdivision 
1.17 	1 and who is no longer a member of the legislature is entitled to receive, upon written 
1.18 	application to the executive director on a form prescribed by the executive director, a refund 
1.19 	from the general fund of all contributions credited to the member's account with interest 
1.20 	computed as provided in section 352.22, subdivision 2.
1.21 	(b) The refund of contributions as provided in paragraph (a) terminates all rights of a 
1.22 	former member of the legislature and the survivors of the former member under this chapter.
1.23 	(c) If the former member of the legislature again becomes a member of the legislature 
1.24 	after having taken a refund as provided in paragraph (a), the member is a member of the 
1.25 	unclassified employees retirement program of the Minnesota State Retirement System.
2.1 	(d) However, the member may reinstate the rights and credit for service previously 
2.2 	forfeited under this chapter if the member repays all refunds taken, plus interest at the rate 
2.3 	of 8.5 percent until June 30, 2015, and eight percent thereafter applicable annual rate or 
2.4 	rates specified in section 356.59, subdivision 2, compounded annually, from the date on 
2.5 	which the refund was taken to the date on which the refund is repaid.
2.6 	(e) No person may be required to apply for or to accept a refund.

2.7 	EFFECTIVE DATE. This section is effective July 1, 2017.

2.8 	Sec. 2. Minnesota Statutes 2016, section 352.01, subdivision 13a, is amended to read:
2.9 		Subd. 13a.Reduced salary during period of workers' compensation. An employee 
2.10 	on leave of absence receiving temporary workers' compensation payments and a reduced 
2.11 	salary or no salary from the employer who is entitled to allowable service credit for the 
2.12 	period of absence, may make payment to the fund for the difference between salary received, 
2.13 	if any, and the salary the employee would normally receive if not on leave of absence during 
2.14 	the period. The employee shall pay an amount equal to the employee and employer 
2.15 	contribution rate under section 352.04, subdivisions 2 and 3, on the differential salary amount 
2.16 	for the period of the leave of absence.
2.17 	The employing department, at its option, may pay the employer amount on behalf of its 
2.18 	employees. Payment made under this subdivision must include interest at the rate of 8.5 
2.19 	percent until June 30, 2015, and eight percent thereafter per year applicable annual rate or 
2.20 	rates specified in section 356.59, subdivision 2, and must be completed within one year of 
2.21 	the return from leave of absence.

2.22 	EFFECTIVE DATE. This section is effective July 1, 2017.

2.23 	Sec. 3. Minnesota Statutes 2016, section 352.017, subdivision 2, is amended to read:
2.24 		Subd. 2.Purchase procedure. (a) An employee covered by a plan specified in this 
2.25 	chapter may purchase credit for allowable service in that plan for a period specified in 
2.26 	subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), whichever 
2.27 	applies. The employing unit, at its option, may pay the employer portion of the amount 
2.28 	specified in paragraph (b) on behalf of its employees.
2.29 	(b) If payment is received by the executive director within one year from the date the 
2.30 	employee returned to work following the authorized leave, the payment amount is equal to 
2.31 	the employee and employer contribution rates specified in law for the applicable plan at the 
2.32 	end of the leave period multiplied by the employee's hourly rate of salary on the date of 
3.1 	return from the leave of absence and by the days and months of the leave of absence for 
3.2 	which the employee is eligible for allowable service credit. The payment must include 
3.3 	compound interest at the monthly rate of 0.71 percent until June 30, 2015, and 0.667 percent 
3.4 	per month thereafter applicable monthly rate or rates specified in section 356.59, subdivision 
3.5 	2,  from the last day of the leave period until the last day of the month in which payment is 
3.6 	received. If payment is received by the executive director after one year, the payment amount 
3.7 	is the amount determined under section 356.551. Payment under this paragraph must be 
3.8 	made before the date of termination from public employment covered under this chapter.
3.9 	(c) If the employee terminates employment covered by this chapter during the leave or 
3.10 	following the leave rather than returning to covered employment, payment must be received 
3.11 	by the executive director within 30 days after the termination date. The payment amount is 
3.12 	equal to the employee and employer contribution rates specified in law for the applicable 
3.13 	plan on the day prior to the termination date, multiplied by the employee's hourly rate of 
3.14 	salary on that date and by the days and months of the leave of absence prior to termination.

3.15 	EFFECTIVE DATE. This section is effective July 1, 2017.

3.16 	Sec. 4. Minnesota Statutes 2016, section 352.04, subdivision 2, is amended to read:
3.17 		Subd. 2.Employee contributions. (a) The employee contribution to the fund must be 
3.18 	equal to the following percent of salary:

3.19		from July 1, 2010, to June 30, 2014
	5
	
3.20		from July 1, 2014, and thereafter to June 30, 2017
	5.5
	
3.21		after June 30, 2017
	6
	
3.22 	(b) These contributions must be made by deduction from salary as provided in subdivision 
3.23 	4.
3.24 	(c) Contribution increases under paragraph (a) must be paid starting the first day of the 
3.25 	first full pay period after the effective date of the increase.

3.26 	EFFECTIVE DATE. This section is effective July 1, 2017.

3.27 	Sec. 5. Minnesota Statutes 2016, section 352.04, subdivision 3, is amended to read:
3.28 		Subd. 3.Employer contributions. (a) The employer contribution to the fund must be 
3.29 	equal to the following percent of salary:

3.30		from July 1, 2010, to June 30, 2014
	5
	
3.31		from July 1, 2014, and thereafterto June 30, 2017
	5.5
	
3.32		from July 1, 2017, to June 30, 2019
	7
	
4.1		after June 30, 2019
	8
	
4.2 	(b) Contribution increases under paragraph (a) must be paid starting the first day of the 
4.3 	first full pay period after the effective date of the increase.
4.4 	(c) The employer contribution rate must decrease to be equal to the employee contribution 
4.5 	rate under subdivision 2 once the market value of the assets of the general state employees 
4.6 	retirement plan of the Minnesota State Retirement System equals or exceeds the actuarial 
4.7 	accrued liability of the plan as determined by the actuary retained under section 356.214. 
4.8 	The reduction is effective on the first day of the first full pay period of the fiscal year 
4.9 	immediately following the issuance of the actuarial valuation upon which the reduction is 
4.10 	based.

4.11 	EFFECTIVE DATE. This section is effective July 1, 2017.

4.12 	Sec. 6. Minnesota Statutes 2016, section 352.04, subdivision 8, is amended to read:
4.13 		Subd. 8.Department required to pay omitted salary deductions. (a) If a department 
4.14 	fails to take deductions past due for a period of 60 days or less from an employee's salary 
4.15 	as provided in this section, those deductions must be taken on later payroll abstracts.
4.16 	(b) If a department fails to take deductions past due for a period in excess of 60 days 
4.17 	from an employee's salary as provided in this section, the department, and not the employee, 
4.18 	must pay on later payroll abstracts the employee and employer contributions and an amount 
4.19 	equivalent to 8.5 percent until June 30, 2015, and eight percent thereafter of the total amount 
4.20 	due in lieu of interest, or if the delay in payment exceeds one year, 8.5 percent until June 
4.21 	30, 2015, and eight percent thereafter compound annual interest at the applicable annual 
4.22 	rate or rates specified in section 356.59, subdivision 2, compounded annually, from the date 
4.23 	the employee and employer contributions should have been deducted to the date payment 
4.24 	of the total amount due is paid by the department.
4.25 	(c) If a department fails to take deductions past due for a period of 60 days or less and 
4.26 	the employee is no longer in state service so that the required deductions cannot be taken 
4.27 	from the salary of the employee, the department must nevertheless pay the required employer 
4.28 	contributions. If any department fails to take deductions past due for a period in excess of 
4.29 	60 days and the employee is no longer in state service, the omitted contributions must be 
4.30 	recovered under paragraph (b).
4.31 	(d) If an employee from whose salary required deductions were past due for a period of 
4.32 	60 days or less leaves state service before the payment of the omitted deductions and 
4.33 	subsequently returns to state service, the unpaid amount is considered the equivalent of a 
5.1 	refund. The employee accrues no right by reason of the unpaid amount, except that the 
5.2 	employee may pay the amount of omitted deductions as provided in section 352.23.

5.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

5.4 	Sec. 7. Minnesota Statutes 2016, section 352.04, subdivision 9, is amended to read:
5.5 		Subd. 9.Erroneous deductions, canceled warrants. (a) Deductions taken from the 
5.6 	salary of an employee for the retirement fund in excess of required amounts must, upon 
5.7 	discovery and verification by the department making the deduction, be refunded to the 
5.8 	employee.
5.9 	(b) If a deduction for the retirement fund is taken from a salary warrant or check, and 
5.10 	the check is canceled or the amount of the warrant or check returned to the funds of the 
5.11 	department making the payment, the sum deducted, or the part of it required to adjust the 
5.12 	deductions, must be refunded to the department or institution if the department applies for 
5.13 	the refund on a form furnished by the director. The department's payments must likewise 
5.14 	be refunded to the department.
5.15 	(c) If erroneous employee deductions and employer contributions are caused by an error 
5.16 	in plan coverage involving the plan and any other plans specified in section 356.99, that 
5.17 	section applies. If the employee should have been covered by the plan governed by chapter 
5.18 	352D, 353D, 354B, or 354D, the employee deductions and employer contributions taken 
5.19 	in error must be directly transferred to the applicable employee's account in the correct 
5.20 	retirement plan, with interest at the rate of 0.71 percent per month until June 30, 2015, and 
5.21 	0.667 percent per month thereafter applicable monthly rate or rates specified in section 
5.22 	356.59, subdivision 2, per month, compounded annually, from the first day of the month 
5.23 	following the month in which coverage should have commenced in the correct defined 
5.24 	contribution plan until the end of the month in which the transfer occurs.

5.25 	EFFECTIVE DATE. This section is effective July 1, 2017.

5.26 	Sec. 8. Minnesota Statutes 2016, section 352.23, is amended to read:
5.27 	352.23 TERMINATION OF RIGHTS; REPAYMENT OF REFUND.
5.28 	(a) When any employee accepts a refund as provided in section 352.22, all existing 
5.29 	allowable service credits and all rights and benefits to which the employee was entitled 
5.30 	before accepting the refund terminate.
6.1 	(b) Terminated service credits and rights must not again be restored until the former 
6.2 	employee acquires at least six months of allowable service credit after taking the last refund. 
6.3 	In that event, the employee may repay all refunds previously taken from the retirement fund.
6.4 	(c) Repayment of refunds entitles the employee only to credit for service covered by (1) 
6.5 	salary deductions; (2) payments previously made in lieu of salary deductions as permitted 
6.6 	under law in effect when the payment in lieu of deductions was made; (3) payments made 
6.7 	to obtain credit for service as permitted by laws in effect when payment was made; and (4) 
6.8 	allowable service previously credited while receiving temporary workers' compensation as 
6.9 	provided in section 352.01, subdivision 11, paragraph (a), clause (3).
6.10 	(d) Payments under this section for repayment of refunds are to be paid with interest at 
6.11 	the rate of 8.5 percent until June 30, 2015, and eight percent thereafter applicable annual 
6.12 	rate or rates specified in section 356.59, subdivision 2, compounded annually, from the date 
6.13 	the refund was taken until the date the refund is repaid. They may be paid in a lump sum 
6.14 	or by payroll deduction in the manner provided in section 352.04. Payment may be made 
6.15 	in a lump sum up to six months after termination from service.

6.16 	EFFECTIVE DATE. This section is effective July 1, 2017.

6.17 	Sec. 9. Minnesota Statutes 2016, section 352.27, is amended to read:
6.18 	352.27 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED 
6.19 	SERVICE.
6.20 	(a) An employee who is absent from employment by reason of service in the uniformed 
6.21 	services, as defined in United States Code, title 38, section 4303(13), and who returns to 
6.22 	state service upon discharge from service in the uniformed service within the time frames 
6.23 	required in United States Code, title 38, section 4312(e), may obtain service credit for the 
6.24 	period of the uniformed service as further specified in this section, provided that the employee 
6.25 	did not separate from uniformed service with a dishonorable or bad conduct discharge or 
6.26 	under other than honorable conditions.
6.27 	(b) The employee may obtain credit by paying into the fund an equivalent employee 
6.28 	contribution based upon the contribution rate or rates in effect at the time that the uniformed 
6.29 	service was performed multiplied by the full and fractional years being purchased and 
6.30 	applied to the annual salary rate. The annual salary rate is the average annual salary during 
6.31 	the purchase period that the employee would have received if the employee had continued 
6.32 	to be employed in covered employment rather than to provide uniformed service, or, if the 
6.33 	determination of that rate is not reasonably certain, the annual salary rate is the employee's 
7.1 	average salary rate during the 12-month period of covered employment rendered immediately 
7.2 	preceding the period of the uniformed service.
7.3 	(c) The equivalent employer contribution and, if applicable, the equivalent additional 
7.4 	employer contribution provided in this chapter must be paid by the department employing 
7.5 	the employee from funds available to the department at the time and in the manner provided 
7.6 	in this chapter, using the employer and additional employer contribution rate or rates in 
7.7 	effect at the time that the uniformed service was performed, applied to the same annual 
7.8 	salary rate or rates used to compute the equivalent employee contribution.
7.9 	(d) If the employee equivalent contributions provided in this section are not paid in full, 
7.10 	the employee's allowable service credit must be prorated by multiplying the full and fractional 
7.11 	number of years of uniformed service eligible for purchase by the ratio obtained by dividing 
7.12 	the total employee contribution received by the total employee contribution otherwise 
7.13 	required under this section.
7.14 	(e) To receive service credit under this section, the contributions specified in this section 
7.15 	must be transmitted to the Minnesota State Retirement System during the period which 
7.16 	begins with the date on which the individual returns to state service and which has a duration 
7.17 	of three times the length of the uniformed service period, but not to exceed five years. If 
7.18 	the determined payment period is less than one year, the contributions required under this 
7.19 	section to receive service credit may be made within one year of the discharge date.
7.20 	(f) The amount of service credit obtainable under this section may not exceed five years 
7.21 	unless a longer purchase period is required under United States Code, title 38, section 4312.
7.22 	(g) The employing unit shall pay interest on all equivalent employee and employer 
7.23 	contribution amounts payable under this section. Interest must be computed at the rate of 
7.24 	8.5 percent until June 30, 2015, and eight percent thereafter at the applicable annual rate or 
7.25 	rates specified in section 356.59, subdivision 2, compounded annually, from the end of each 
7.26 	fiscal year of the leave or the break in service to the end of the month in which the payment 
7.27 	is received.

7.28 	EFFECTIVE DATE. This section is effective July 1, 2017.

7.29 	Sec. 10. Minnesota Statutes 2016, section 352.92, subdivision 1, is amended to read:
7.30 		Subdivision 1.Employee contributions. (a) Employee contributions of covered 
7.31 	correctional employees must be in an amount equal to the following percent of salary:

7.32		from July 1, 2010, to June 30, 2014
	8.6
	
7.33		from July 1, 2014, and thereafterto June 30, 2017
	9.1
	
8.1		after June 30, 2017
	9.6
	
8.2 	(b) These contributions must be made by deduction from salary as provided in section 
8.3 	352.04, subdivision 4.
8.4 	(c) Contribution increases under paragraph (a) must be paid starting the first day of the 
8.5 	first full pay period after the effective date of the increase.

8.6 	EFFECTIVE DATE. This section is effective July 1, 2017.

8.7 	Sec. 11. Minnesota Statutes 2016, section 352.92, subdivision 2, is amended to read:
8.8 		Subd. 2.Employer contributions. (a) The employer shall contribute for covered 
8.9 	correctional employees an amount equal to the following percent of salary:

8.10		from July 1, 2010, to June 30, 2014
	12.1
	
8.11		from July 1, 2014, and thereafterto June 30, 2017
	12.85
	
8.12		after June 30, 2017
	14.4
	
8.13 	(b) Contribution increases under paragraph (a) must be paid starting the first day of the 
8.14 	first full pay period after the effective date of the increase.

8.15 	EFFECTIVE DATE. This section is effective July 1, 2017.

8.16 	Sec. 12. Minnesota Statutes 2016, section 352.92, is amended by adding a subdivision to 
8.17 	read:
8.18 		Subd. 2a.Supplemental employer contribution. Effective July 1, 2017, the employer 
8.19 	shall pay a supplemental contribution of 4.45 percent of salary for covered correctional 
8.20 	employees until the market value of the assets of the correctional state employees retirement 
8.21 	plan of the Minnesota State Retirement System equals or exceeds the actuarial accrued 
8.22 	liability of the plan as determined by the actuary retained under section 356.214. The 
8.23 	expiration of the supplemental employer contribution is effective the first day of the first 
8.24 	full pay period of the fiscal year immediately following the issuance of the actuarial valuation 
8.25 	upon which the expiration is based.

8.26 	EFFECTIVE DATE. This section is effective the first day of the first full pay period 
8.27 	after July 1, 2017.

8.28 	Sec. 13. Minnesota Statutes 2016, section 352.955, subdivision 3, is amended to read:
8.29 		Subd. 3.Payment of additional equivalent contributions. (a) An eligible employee 
8.30 	who is transferred to plan coverage and who elects to transfer past service credit under this 
8.31 	section must pay an additional member contribution for that prior service period. The 
9.1 	additional member contribution is the amount computed under paragraph (b), plus the greater 
9.2 	of the amount computed under paragraph (c), or 40 percent of the unfunded actuarial accrued 
9.3 	liability attributable to the past service credit transfer.
9.4 	(b) The executive director shall compute, for the most recent 12 months of service credit 
9.5 	eligible for transfer, or for the entire period eligible for transfer if less than 12 months, the 
9.6 	difference between the employee contribution rate or rates for the general state employees 
9.7 	retirement plan and the employee contribution rate or rates for the correctional state 
9.8 	employees retirement plan applied to the eligible employee's salary during that transfer 
9.9 	period, plus compound interest at the monthly rate of 0.71 percent until June 30, 2015, and 
9.10 	0.667 percent per month thereafter applicable monthly rate or rates specified in section 
9.11 	356.59, subdivision 2.
9.12 	(c) The executive director shall compute, for any service credit being transferred on 
9.13 	behalf of the eligible employee and not included under paragraph (b), the difference between 
9.14 	the employee contribution rate or rates for the general state employees retirement plan and 
9.15 	the employee contribution rate or rates for the correctional state employees retirement plan 
9.16 	applied to the eligible employee's salary during that transfer period, plus compound interest 
9.17 	at the monthly rate of 0.71 percent until June 30, 2015, and 0.667 percent per month thereafter
9.18 	applicable monthly rate or rates specified in section 356.59, subdivision 2.
9.19 	(d) The executive director shall compute an amount using the process specified in 
9.20 	paragraph (b), but based on differences in employer contribution rates between the general 
9.21 	state employees retirement plan and the correctional state employees retirement plan rather 
9.22 	than employee contribution rates.
9.23 	(e) The executive director shall compute an amount using the process specified in 
9.24 	paragraph (c), but based on differences in employer contribution rates between the general 
9.25 	state employees retirement plan and the correctional state employees retirement plan rather 
9.26 	than employee contribution rates.
9.27 	(f) The additional equivalent member contribution under this subdivision must be paid 
9.28 	in a lump sum. Payment must accompany the election to transfer the prior service credit. 
9.29 	No transfer election or additional equivalent member contribution payment may be made 
9.30 	by a person or accepted by the executive director after the one year anniversary date of the 
9.31 	effective date of the retirement coverage transfer, or the date on which the eligible employee 
9.32 	terminates state employment, whichever is earlier.
9.33 	(g) If an eligible employee elects to transfer past service credit under this section and 
9.34 	pays the additional equivalent member contribution amount under paragraph (a), the 
10.1 	applicable department shall pay an additional equivalent employer contribution amount. 
10.2 	The additional employer contribution is the amount computed under paragraph (d), plus the 
10.3 	greater of the amount computed under paragraph (e), or 60 percent of the unfunded actuarial 
10.4 	accrued liability attributable to the past service credit transfer.
10.5 	(h) The unfunded actuarial accrued liability attributable to the past service credit transfer 
10.6 	is the present value of the benefit obtained by the transfer of the service credit to the 
10.7 	correctional state employees retirement plan reduced by the amount of the asset transfer 
10.8 	under subdivision 4, by the amount of the member contribution equivalent payment computed 
10.9 	under paragraph (b), and by the amount of the employer contribution equivalent payment 
10.10 	computed under paragraph (d).
10.11 	(i) The additional equivalent employer contribution under this subdivision must be paid 
10.12 	in a lump sum and must be paid within 30 days of the date on which the executive director 
10.13 	of the Minnesota State Retirement System certifies to the applicable department that the 
10.14 	employee paid the additional equivalent member contribution.

10.15 	EFFECTIVE DATE. This section is effective July 1, 2017.

10.16 	Sec. 14. Minnesota Statutes 2016, section 352B.013, subdivision 2, is amended to read:
10.17 		Subd. 2.Purchase procedure. (a) An employee covered by the plan specified in this 
10.18 	chapter may purchase credit for allowable service in the plan for a period specified in 
10.19 	subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), whichever 
10.20 	applies. The employing unit, at its option, may pay the employer portion of the amount 
10.21 	specified in paragraph (b) on behalf of its employees.
10.22 	(b) If payment is received by the executive director within one year from the date the 
10.23 	employee returned to work following the authorized leave, the payment amount is equal to 
10.24 	the employee and employer contribution rates specified in section 352B.02 at the end of 
10.25 	the leave period multiplied by the employee's hourly rate of salary on the date of return 
10.26 	from the leave of absence and by the days and months of the leave of absence for which 
10.27 	the employee is eligible for allowable service credit. The payment must include compound 
10.28 	interest at the monthly rate of 0.71 percent until June 30, 2015, and 0.667 percent per month 
10.29 	thereafter applicable monthly rate or rates specified in section 356.59, subdivision 2, from 
10.30 	the last day of the leave period until the last day of the month in which payment is received. 
10.31 	If payment is received by the executive director after one year from the date the employee 
10.32 	returned to work following the authorized leave, the payment amount is the amount 
10.33 	determined under section 356.551. Payment under this paragraph must be made before the 
10.34 	date of termination from public employment covered under this chapter.
11.1 	(c) If the employee terminates employment covered by this chapter during the leave or 
11.2 	following the leave rather than returning to covered employment, payment must be received 
11.3 	by the executive director within 30 days after the termination date. The payment amount is 
11.4 	equal to the employee and employer contribution rates specified in section 352B.02 on the 
11.5 	day prior to the termination date, multiplied by the employee's hourly rate of salary on that 
11.6 	date and by the days and months of the leave of absence prior to termination.

11.7 	EFFECTIVE DATE. This section is effective July 1, 2017.

11.8 	Sec. 15. Minnesota Statutes 2016, section 352B.02, subdivision 1a, is amended to read:
11.9 		Subd. 1a.Member contributions. (a) The member contribution is the following 
11.10 	percentage of the member's salary:

11.11
11.12		(1) before the first day of the first pay period beginning 
after July 1,  2014
	12.4 percent
	
11.13
11.14		(2) on or after the first day of the first pay period 
beginning afterfrom July 1, 2014, to June 30, 2016
	13.4 percent
	
11.15
11.16		(3) after June 30, 2016 from July 1, 2016, to June 30, 
2017
	14.4 percent
	
11.17		from July 1, 2017, to June 30, 2019
	14.9
	
11.18		after June 30, 2019
	15.4
	
11.19 	(b) These contributions must be made by deduction from salary as provided in section 
11.20 	352.04, subdivision 4.
11.21 	(c) Contribution increases under paragraph (a) must be paid starting the first day of the 
11.22 	first full pay period after the effective date of the increase.

11.23 	EFFECTIVE DATE. This section is effective July 1, 2017.

11.24 	Sec. 16. Minnesota Statutes 2016, section 352B.02, subdivision 1c, is amended to read:
11.25 		Subd. 1c.Employer contributions and supplemental employer contribution. (a) In 
11.26 	addition to member contributions, department heads shall pay a sum equal to the specified 
11.27 	percentage of the salary upon which deductions were made, which constitutes the employer 
11.28 	contribution to the fund as follows:

11.29
11.30		(1) before the first day of the first pay period beginning 
after July 1,  2014
	18.6 percent
	
11.31
11.32		(2) on or after the first day of the first pay period 
beginning afterfrom July 1, 2014, to June 30, 2016
	20.1 percent
	
11.33
11.34		(3) after June 30, 2016 from July 1, 2016, to June 30, 
2017
	21.6 percent
	
11.35		from July 1, 2017, to June 30, 2019
	22.35
	
12.1		after June 30, 2019
	23.1
	
12.2 	(b) Department contributions must be paid out of money appropriated to departments 
12.3 	for this purpose.
12.4 	(c) Contribution increases under paragraph (a) must be paid starting the first day of the 
12.5 	first full pay period after the effective date of the increase.
12.6 	(d) Effective July 1, 2017, department heads shall pay a supplemental employer 
12.7 	contribution equal to seven percent of the salary upon which deductions were made until 
12.8 	the market value of the assets of the State Patrol retirement plan of the Minnesota State 
12.9 	Retirement System equals or exceeds the actuarial accrued liability of the plan as determined 
12.10 	by the actuary retained under section 356.214. The expiration of the supplemental employer 
12.11 	contribution is effective the first day of the first full pay period of the fiscal year immediately 
12.12 	following the issuance of the actuarial valuation upon which the expiration is based.

12.13 	EFFECTIVE DATE. The amendments to paragraphs (a) and (c) are effective July 1, 
12.14 	2017. The amendments to paragraph (d) are effective the first day of the first full pay period 
12.15 	after July 1, 2017.

12.16 	Sec. 17. Minnesota Statutes 2016, section 352B.085, is amended to read:
12.17 	352B.085 SERVICE CREDIT FOR CERTAIN DISABILITY LEAVES OF 
12.18 	ABSENCE.
12.19 	A member on leave of absence receiving temporary workers' compensation payments 
12.20 	and a reduced salary or no salary from the employer who is entitled to allowable service 
12.21 	credit for the period of absence under section 352B.011, subdivision 3, paragraph (b), may 
12.22 	make payment to the fund for the difference between salary received, if any, and the salary 
12.23 	that the member would normally receive if the member was not on leave of absence during 
12.24 	the period. The member shall pay an amount equal to the member and employer contribution 
12.25 	rate under section 352B.02, subdivisions 1b and 1c, on the differential salary amount for 
12.26 	the period of the leave of absence. The employing department, at its option, may pay the 
12.27 	employer amount on behalf of the member. Payment made under this subdivision must 
12.28 	include interest at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter
12.29 	applicable annual rate or rates specified in section 356.59, subdivision 2, per year, and must 
12.30 	be completed within one year of the member's return from the leave of absence.

12.31 	EFFECTIVE DATE. This section is effective July 1, 2017.

13.1 	Sec. 18. Minnesota Statutes 2016, section 352B.086, is amended to read:
13.2 	352B.086 SERVICE CREDIT FOR UNIFORMED SERVICE.
13.3 	(a) A member who is absent from employment by reason of service in the uniformed 
13.4 	services, as defined in United States Code, title 38, section 4303(13), and who returns to 
13.5 	state employment in a position covered by the plan upon discharge from service in the 
13.6 	uniformed services within the time frame required in United States Code, title 38, section 
13.7 	4312(e), may obtain service credit for the period of the uniformed service, provided that 
13.8 	the member did not separate from uniformed service with a dishonorable or bad conduct 
13.9 	discharge or under other than honorable conditions.
13.10 	(b) The member may obtain credit by paying into the fund an equivalent member 
13.11 	contribution based on the member contribution rate or rates in effect at the time that the 
13.12 	uniformed service was performed multiplied by the full and fractional years being purchased 
13.13 	and applied to the annual salary rate. The annual salary rate is the average annual salary 
13.14 	during the purchase period that the member would have received if the member had continued 
13.15 	to provide employment services to the state rather than to provide uniformed service, or if 
13.16 	the determination of that rate is not reasonably certain, the annual salary rate is the member's 
13.17 	average salary rate during the 12-month period of covered employment rendered immediately 
13.18 	preceding the purchase period.
13.19 	(c) The equivalent employer contribution and, if applicable, the equivalent employer 
13.20 	additional contribution, must be paid by the employing unit, using the employer and employer 
13.21 	additional contribution rate or rates in effect at the time that the uniformed service was 
13.22 	performed, applied to the same annual salary rate or rates used to compute the equivalent 
13.23 	member contribution.
13.24 	(d) If the member equivalent contributions provided for in this section are not paid in 
13.25 	full, the member's allowable service credit must be prorated by multiplying the full and 
13.26 	fractional number of years of uniformed service eligible for purchase by the ratio obtained 
13.27 	by dividing the total member contributions received by the total member contributions 
13.28 	otherwise required under this section.
13.29 	(e) To receive allowable service credit under this section, the contributions specified in 
13.30 	this section must be transmitted to the fund during the period which begins with the date 
13.31 	on which the individual returns to state employment covered by the plan and which has a 
13.32 	duration of three times the length of the uniformed service period, but not to exceed five 
13.33 	years. If the determined payment period is calculated to be less than one year, the 
14.1 	contributions required under this section to receive service credit must be transmitted to the 
14.2 	fund within one year from the discharge date.
14.3 	(f) The amount of allowable service credit obtainable under this section may not exceed 
14.4 	five years, unless a longer purchase period is required under United States Code, title 38, 
14.5 	section 4312.
14.6 	(g) The employing unit shall pay interest on all equivalent member and employer 
14.7 	contribution amounts payable under this section. Interest must be computed at the rate of 
14.8 	8.5 percent until June 30, 2015, and eight percent thereafter applicable annual rate or rates 
14.9 	specified in section 356.59, subdivision 2, compounded annually, from the end of each 
14.10 	fiscal year of the leave or break in service to the end of the month in which payment is 
14.11 	received.

14.12 	EFFECTIVE DATE. This section is effective July 1, 2017.

14.13 	Sec. 19. Minnesota Statutes 2016, section 352B.11, subdivision 4, is amended to read:
14.14 		Subd. 4.Reentry into state service. When a former member, who has become separated 
14.15 	from state service that entitled the member to membership and has received a refund of 
14.16 	retirement payments, reenters the state service in a position that entitles the member to 
14.17 	membership, that member shall receive credit for the period of prior allowable state service 
14.18 	if the member repays into the fund the amount of the refund, plus interest on it at the rate 
14.19 	of 8.5 percent until June 30, 2015, and eight percent thereafter at the applicable annual rate 
14.20 	or rates specified in section 356.59, subdivision 2, compounded annually, at any time before 
14.21 	subsequent retirement. Repayment may be made in installments or in a lump sum.

14.22 	EFFECTIVE DATE. This section is effective July 1, 2017.

14.23 	Sec. 20. Minnesota Statutes 2016, section 352D.05, subdivision 4, is amended to read:
14.24 		Subd. 4.Repayment of refund. (a) A participant in the unclassified program may repay 
14.25 	regular refunds taken under section 352.22, as provided in section 352.23.
14.26 	(b) A participant in the unclassified program or an employee covered by the general 
14.27 	employees retirement plan who has withdrawn the value of the total shares may repay the 
14.28 	refund taken and thereupon restore the service credit, rights and benefits forfeited by paying 
14.29 	into the fund the amount refunded plus interest at the rate of 8.5 percent until June 30, 2015, 
14.30 	and eight percent thereafter applicable annual rate or rates specified in section 356.59, 
14.31 	subdivision 2, compounded annually, from the date that the refund was taken until the date 
15.1 	that the refund is repaid. If the participant had withdrawn only the employee shares as 
15.2 	permitted under prior laws, repayment must be pro rata.
15.3 	(c) Except as provided in section 356.441, the repayment of a refund under this section 
15.4 	must be made in a lump sum.

15.5 	EFFECTIVE DATE. This section is effective July 1, 2017.

15.6 	Sec. 21. Minnesota Statutes 2016, section 352D.11, subdivision 2, is amended to read:
15.7 		Subd. 2.Payments by employee. An employee entitled to purchase service credit may 
15.8 	make the purchase by paying to the state retirement system an amount equal to the current 
15.9 	employee contribution rate in effect for the state retirement system applied to the current 
15.10 	or final salary rate multiplied by the months and days of prior temporary, intermittent, or 
15.11 	contract legislative service. Payment shall be made in one lump sum unless the executive 
15.12 	director of the state retirement system agrees to accept payment in installments over a period 
15.13 	of not more than three years from the date of the agreement. Installment payments shall be 
15.14 	charged interest at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter
15.15 	applicable annual rate or rates specified in section 356.59, subdivision 2, compounded 
15.16 	annually.

15.17 	EFFECTIVE DATE. This section is effective July 1, 2017.

15.18 	Sec. 22. Minnesota Statutes 2016, section 352D.12, is amended to read:
15.19 	352D.12 TRANSFER OF PRIOR SERVICE CONTRIBUTIONS.
15.20 	(a) An employee who is a participant in the unclassified program and who has prior 
15.21 	service credit in a covered plan under chapter 352, 353, 354, 354A, or 422A may, within 
15.22 	the time limits specified in this section, elect to transfer to the unclassified program prior 
15.23 	service contributions to one or more of those plans.
15.24 	(b) For participants with prior service credit in a plan governed by chapter 352, 353, 
15.25 	354, 354A, or 422A, "prior service contributions" means the accumulated employee and 
15.26 	equal employer contributions with interest at the rate of 8.5 percent until June 30, 2015, 
15.27 	and eight percent thereafter applicable annual rate or rates specified in section 356.59, 
15.28 	subdivision 2, compounded annually, based on fiscal year balances.
15.29 	(c) If a participant has taken a refund from a retirement plan listed in this section, the 
15.30 	participant may repay the refund to that plan, notwithstanding any restrictions on repayment 
15.31 	to that plan, plus 8.5 percent interest until June 30, 2015, and eight percent interest thereafter
15.32 	with interest at the applicable annual rate or rates specified in section 356.59, subdivision 
16.1 	2, compounded annually, and have the accumulated employee and equal employer 
16.2 	contributions transferred to the unclassified program with interest at the rate of 8.5 percent 
16.3 	until June 30, 2015, and eight percent thereafter compounded annually based on fiscal year 
16.4 	balances. If a person repays a refund and subsequently elects to have the money transferred 
16.5 	to the unclassified program, the repayment amount, including interest, is added to the fiscal 
16.6 	year balance in the year which the repayment was made.
16.7 	(d) A participant electing to transfer prior service contributions credited to a retirement 
16.8 	plan governed by chapter 352, 353, 354, 354A, or 422A as provided under this section must 
16.9 	complete a written application for the transfer and repay any refund within one year of the 
16.10 	commencement of the employee's participation in the unclassified program.

16.11 	EFFECTIVE DATE. This section is effective July 1, 2017.

16.12 	Sec. 23. Minnesota Statutes 2016, section 356.215, subdivision 8, is amended to read:
16.13 		Subd. 8.Interest and salaryActuarial assumptions. (a) The actuarial valuation must 
16.14 	use the applicable following interestinvestment return assumption:
16.15 	(1) select and ultimate interest rate assumption

16.1716.16
	plan
	ultimate interest rate 
assumption
		
16.18	teachers retirement plan
	8.5%
		
16.19 	The select preretirement interest rate assumption for the period through June 30, 2017, 
16.20 	is eight percent.
16.21 	(2) single rate interest rate for all plans other than the teachers retirement plan, the 
16.22 	investment return assumption is:

16.2516.23
16.24
	plan
	interest rate
investment return
assumption
		
16.26	general state employees retirement plan
	8% 7.5%
		
16.27	correctional state employees retirement plan
	8 7.5
		
16.28	State Patrol retirement plan
	8 7.5
		
16.29
16.30
16.31	legislators retirement plan, and for the 
constitutional officers calculation of total plan 
liabilities
	0
		
16.32	judges retirement plan
	8 7.5
		
16.33	general public employees retirement plan
	8
		
16.34	public employees police and fire retirement plan
	8
		
16.35
16.36	local government correctional service retirement 
plan
	8
		
17.1	St. Paul teachers retirement plan
	8
		
17.2	Bloomington Fire Department Relief Association
	6
		
17.3
17.4	local monthly benefit volunteer firefighter relief 
associations
	5
		
17.5
17.6	monthly benefit retirement plans in the statewide 
volunteer firefighter retirement plan
	6
		
17.7 	(b)(1) If funding stability has been attained, The actuarial valuation for each of the 
17.8 	covered retirement plans listed in section 356.415, subdivision 2, must use atake into account 
17.9 	the postretirement adjustment rate actuarial assumption equal to the postretirement adjustment 
17.10 	rateor rates applicable to the plan as specified in section 354A.27, subdivision 7; 354A.29, 
17.11 	subdivision 9; 7, or 356.415, subdivision 1, whichever applies.
17.12 	(2) if funding stability has not been attained, the valuation must use a select postretirement 
17.13 	adjustment rate actuarial assumption equal to the postretirement adjustment rate specified 
17.14 	in section 354A.27, subdivision 6a; 354A.29, subdivision 8; or 356.415, subdivision 1a, 
17.15 	1b, 1c, 1d, 1e, or 1f, whichever applies, for a period ending when the approved actuary 
17.16 	estimates that the plan will attain the defined funding stability measure, and thereafter an 
17.17 	ultimate postretirement adjustment rate actuarial assumption equal to the postretirement 
17.18 	adjustment rate under section 354A.27, subdivision 7; 354A.29, subdivision 9; or 356.415, 
17.19 	subdivision 1, for the applicable period or periods beginning when funding stability is 
17.20 	projected to be attained.
17.21 	(c) The actuarial valuation must use the applicable following single rate future salary 
17.22 	increase assumption, the applicable following modified single rate future salary increase 
17.23 	assumption, or the applicable following graded rate future salary increase assumption:
17.24 	(1) single rate future salary increase assumption

17.25	plan
	future salary increase assumption
	
17.26	legislators retirement plan
		5%
	
17.27	judges retirement plan
		2.75
	
17.28	Bloomington Fire Department Relief Association
		4
	
17.29 	(2) age-related future salary increase age-related select and ultimate future salary increase 
17.30 	assumption or graded rate future salary increase assumption

17.31	plan
	future salary increase assumption
	
17.32	local government correctional service retirement plan
	assumption B
	
17.33	St. Paul teachers retirement plan
	assumption A
	
17.34 	For plans other than the St. Paul teachers 
17.35 	retirement plan and the local government 
18.1 	correctional service retirement plan, the select 
18.2 	calculation is: during the designated select 
18.3 	period, a designated percentage rate is 
18.4 	multiplied by the result of the designated 
18.5 	integer minus T, where T is the number of 
18.6 	completed years of service, and is added to 
18.7 	the applicable future salary increase 
18.8 	assumption. The designated select period is 
18.9 	ten years and the designated integer is ten for 
18.10 	the local government correctional service 
18.11 	retirement plan and 15 for the St. Paul 
18.12 	Teachers Retirement Fund Association. The 
18.13 	designated percentage rate is 0.2 percent for 
18.14 	the St. Paul Teachers Retirement Fund 
18.15 	Association.
18.16 	The ultimate future salary increase assumption is:

18.17	age
	A
	B
		
18.18	16
	5.9%
	8.75%
		
18.19	17
	5.9
	8.75
		
18.20	18
	5.9
	8.75
		
18.21	19
	5.9
	8.75
		
18.22	20
	5.9
	8.75
		
18.23	21
	5.9
	8.5
		
18.24	22
	5.9
	8.25
		
18.25	23
	5.85
	8
		
18.26	24
	5.8
	7.75
		
18.27	25
	5.75
	7.5
		
18.28	26
	5.7
	7.25
		
18.29	27
	5.65
	7
		
18.30	28
	5.6
	6.75
		
18.31	29
	5.55
	6.5
		
18.32	30
	5.5
	6.5
		
18.33	31
	5.45
	6.25
		
18.34	32
	5.4
	6.25
		
18.35	33
	5.35
	6.25
		
18.36	34
	5.3
	6
		
19.1	35
	5.25
	6
		
19.2	36
	5.2
	5.75
		
19.3	37
	5.15
	5.75
		
19.4	38
	5.1
	5.75
		
19.5	39
	5.05
	5.5
		
19.6	40
	5
	5.5
		
19.7	41
	4.95
	5.5
		
19.8	42
	4.9
	5.25
		
19.9	43
	4.85
	5
		
19.10	44
	4.8
	5
		
19.11	45
	4.75
	4.75
		
19.12	46
	4.7
	4.75
		
19.13	47
	4.65
	4.75
		
19.14	48
	4.6
	4.75
		
19.15	49
	4.55
	4.75
		
19.16	50
	4.5
	4.75
		
19.17	51
	4.45
	4.75
		
19.18	52
	4.4
	4.75
		
19.19	53
	4.35
	4.75
		
19.20	54
	4.3
	4.75
		
19.21	55
	4.25
	4.5
		
19.22	56
	4.2
	4.5
		
19.23	57
	4.15
	4.25
		
19.24	58
	4.1
	4
		
19.25	59
	4.05
	4
		
19.26	60
	4
	4
		
19.27	61
	4
	4
		
19.28	62
	4
	4
		
19.29	63
	4
	4
		
19.30	64
	4
	4
		
19.31	65
	4
	3.75
		
19.32	66
	4
	3.75
		
19.33	67
	4
	3.75
		
19.34	68
	4
	3.75
		
19.35	69
	4
	3.75
		
19.36	70
	4
	3.75
		
19.37 	(3) service-related ultimate future salary increase assumption

20.1
20.2	general state employees retirement plan of the Minnesota 
State Retirement System
	assumption A
	
20.3
20.4	general employees retirement plan of the Public 
Employees Retirement Association
	assumption B
	
20.5	Teachers Retirement Association
	assumption C
	
20.6	public employees police and fire retirement plan
	assumption D
	
20.7	State Patrol retirement plan
	assumption E
	
20.8
20.9	correctional state employees retirement plan of the 
Minnesota State Retirement System
	assumption F

20.10
20.11	service 
length
	A
	B
	C
	D
	E
	F
	
20.12	1
	10.25%
	11.78%
	12%
	12.75%
	7.75%
	5.75%
	
20.13	2
	7.85
	8.65
	9
	10.75
	7.25
	5.6
	
20.14	3
	6.65
	7.21
	8
	8.75
	6.75
	5.45
	
20.15	4
	5.95
	6.33
	7.5
	7.75
	6.5
	5.3
	
20.16	5
	5.45
	5.72
	7.25
	6.25
	6.25
	5.15
	
20.17	6
	5.05
	5.27
	7
	5.85
	6
	5
	
20.18	7
	4.75
	4.91
	6.85
	5.55
	5.75
	4.85
	
20.19	8
	4.45
	4.62
	6.7
	5.35
	5.6
	4.7
	
20.20	9
	4.25
	4.38
	6.55
	5.15
	5.45
	4.55
	
20.21	10
	4.15
	4.17
	6.4
	5.05
	5.3
	4.4
	
20.22	11
	3.95
	3.99
	6.25
	4.95
	5.15
	4.3
	
20.23	12
	3.85
	3.83
	6
	4.85
	5
	4.2
	
20.24	13
	3.75
	3.69
	5.75
	4.75
	4.85
	4.1
	
20.25	14
	3.55
	3.57
	5.5
	4.65
	4.7
	4
	
20.26	15
	3.45
	3.45
	5.25
	4.55
	4.55
	3.9
	
20.27	16
	3.35
	3.35
	5
	4.55
	4.4
	3.8
	
20.28	17
	3.25
	3.26
	4.75
	4.55
	4.25
	3.7
	
20.29	18
	3.25
	3.25
	4.5
	4.55
	4.1
	3.6
	
20.30	19
	3.25
	3.25
	4.25
	4.55
	3.95
	3.5
	
20.31	20
	3.25
	3.25
	4
	4.55
	3.8
	3.5
	
20.32	21
	3.25
	3.25
	3.9
	4.45
	3.75
	3.5
	
20.33	22
	3.25
	3.25
	3.8
	4.35
	3.75
	3.5
	
20.34	23
	3.25
	3.25
	3.7
	4.25
	3.75
	3.5
	
20.35	24
	3.25
	3.25
	3.6
	4.25
	3.75
	3.5
	
20.36	25
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
20.37	26
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
20.38	27
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
20.39	28
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
21.1	29
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
21.2	30 or more
	3.25
	3.25
	3.5
	4.25
	3.75
	3.5
	
21.3 	(d) The actuarial valuation must use the applicable following payroll growth assumption 
21.4 	for calculating the amortization requirement for the unfunded actuarial accrued liability 
21.5 	where the amortization retirement is calculated as a level percentage of an increasing payroll:

21.6	plan
	payroll growth assumption
	
21.7
21.8	general state employees retirement plan of the Minnesota 
State Retirement System
	3.5%
	
21.9	correctional state employees retirement plan
	3.5
	
21.10	State Patrol retirement plan
	3.5
	
21.11	judges retirement plan
	2.75
	
21.12
21.13	general employees retirement plan of the Public 
Employees Retirement Association
	3.5
	
21.14	public employees police and fire retirement plan
	3.5
	
21.15	local government correctional service retirement plan
	3.5
	
21.16	teachers retirement plan
	3.75
	
21.17	St. Paul teachers retirement plan
	4
	
21.18 	(e) The assumptions set forth in paragraphs (c) and (d) continue to apply, unless a 
21.19 	different salary assumption or a different payroll increase assumption:
21.20 	(1) has been proposed by the governing board of the applicable retirement plan;
21.21 	(2) is accompanied by the concurring recommendation of the actuary retained under 
21.22 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most 
21.23 	recent actuarial valuation report if section 356.214 does not apply; and
21.24 	(3) has been approved or deemed approved under subdivision 18.

21.25 	EFFECTIVE DATE. (a) The amendments to paragraph (a) are effective July 1, 2017.
21.26 	(b) The amendments to paragraph (b) are effective January 1, 2018.

21.27 	Sec. 24. Minnesota Statutes 2016, section 356.215, subdivision 11, is amended to read:
21.28 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating the level 
21.29 	normal cost, the actuarial valuation of the retirement plan must contain an exhibit for financial 
21.30 	reporting purposes indicating the additional annual contribution sufficient to amortize the 
21.31 	unfunded actuarial accrued liability and must contain an exhibit for contribution 
21.32 	determination purposes indicating the additional contribution sufficient to amortize the 
21.33 	unfunded actuarial accrued liability. For the retirement plans listed in subdivision 8, paragraph 
21.34 	(c), but excluding the legislators retirement plan, the additional contribution must be 
22.1 	calculated on a level percentage of covered payroll basis by the established date for full 
22.2 	funding in effect when the valuation is prepared, assuming annual payroll growth at the 
22.3 	applicable percentage rate set forth in subdivision 8, paragraph (d). For all other retirement 
22.4 	plans and for the legislators retirement plan, the additional annual contribution must be 
22.5 	calculated on a level annual dollar amount basis.
22.6 	(b) For any retirement plan other than a retirement plan governed by paragraph (d), (e), 
22.7 	(f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions used for 
22.8 	calculating the actuarial accrued liability of the fund, a change in the benefit plan governing 
22.9 	annuities and benefits payable from the fund, a change in the actuarial cost method used in 
22.10 	calculating the actuarial accrued liability of all or a portion of the fund, or a combination 
22.11 	of the three, which change or changes by itself or by themselves without inclusion of any 
22.12 	other items of increase or decrease produce a net increase in the unfunded actuarial accrued 
22.13 	liability of the fund, the established date for full funding is the first actuarial valuation date 
22.14 	occurring after June 1, 2020.
22.15 	(c) For any retirement plan, if there has been a change in any or all of the actuarial 
22.16 	assumptions used for calculating the actuarial accrued liability of the fund, a change in the 
22.17 	benefit plan governing annuities and benefits payable from the fund, a change in the actuarial 
22.18 	cost method used in calculating the actuarial accrued liability of all or a portion of the fund, 
22.19 	or a combination of the three, and the change or changes, by itself or by themselves and 
22.20 	without inclusion of any other items of increase or decrease, produce a net increase in the 
22.21 	unfunded actuarial accrued liability in the fund, the established date for full funding must 
22.22 	be determined using the following procedure:
22.23 	(i) the unfunded actuarial accrued liability of the fund must be determined in accordance 
22.24 	with the plan provisions governing annuities and retirement benefits and the actuarial 
22.25 	assumptions in effect before an applicable change;
22.26 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
22.27 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
22.28 	(i) by the established date for full funding in effect before the change must be calculated 
22.29 	using the interest assumption specified in subdivision 8 in effect before the change;
22.30 	(iii) the unfunded actuarial accrued liability of the fund must be determined in accordance 
22.31 	with any new plan provisions governing annuities and benefits payable from the fund and 
22.32 	any new actuarial assumptions and the remaining plan provisions governing annuities and 
22.33 	benefits payable from the fund and actuarial assumptions in effect before the change;
23.1 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
23.2 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
23.3 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
23.4 	under item (iii) over a period of 30 years from the end of the plan year in which the applicable 
23.5 	change is effective must be calculated using the applicable interest assumption specified in 
23.6 	subdivision 8 in effect after any applicable change;
23.7 	(v) the level annual dollar or level percentage amortization contribution under item (iv) 
23.8 	must be added to the level annual dollar amortization contribution or level percentage 
23.9 	calculated under item (ii);
23.10 	(vi) the period in which the unfunded actuarial accrued liability amount determined in 
23.11 	item (iii) is amortized by the total level annual dollar or level percentage amortization 
23.12 	contribution computed under item (v) must be calculated using the interest assumption 
23.13 	specified in subdivision 8 in effect after any applicable change, rounded to the nearest 
23.14 	integral number of years, but not to exceed 30 years from the end of the plan year in which 
23.15 	the determination of the established date for full funding using the procedure set forth in 
23.16 	this clause is made and not to be less than the period of years beginning in the plan year in 
23.17 	which the determination of the established date for full funding using the procedure set forth 
23.18 	in this clause is made and ending by the date for full funding in effect before the change; 
23.19 	and
23.20 	(vii) the period determined under item (vi) must be added to the date as of which the 
23.21 	actuarial valuation was prepared and the date obtained is the new established date for full 
23.22 	funding.
23.23 	(d) For the general employees retirement plan of the Public Employees Retirement 
23.24 	Association, the established date for full funding is June 30, 2031.
23.25 	(e) For the Teachers Retirement Association, the established date for full funding is June 
23.26 	30, 2037.
23.27 	(f) For the correctional state employees retirement plan and the State Patrol retirement 
23.28 	plan of the Minnesota State Retirement System, the established date for full funding is June 
23.29 	30, 2038 2047.
23.30 	(g) For the judges retirement plan, the established date for full funding is June 30, 2038
23.31 	2047.
23.32 	(h) For the public employees police and fire retirement plan, the established date for full 
23.33 	funding is June 30, 2038.
24.1 	(i) For the St. Paul Teachers Retirement Fund Association, the established date for full 
24.2 	funding is June 30, 2042. In addition to other requirements of this chapter, the annual 
24.3 	actuarial valuation must contain an exhibit indicating the funded ratio and the deficiency 
24.4 	or sufficiency in annual contributions when comparing liabilities to the market value of the 
24.5 	assets of the fund as of the close of the most recent fiscal year.
24.6 	(j) For the general state employees retirement plan of the Minnesota State Retirement 
24.7 	System, the established date for full funding is June 30, 2040 2047.
24.8 	(k) For the retirement plans for which the annual actuarial valuation indicates an excess 
24.9 	of valuation assets over the actuarial accrued liability, the valuation assets in excess of the 
24.10 	actuarial accrued liability must be recognized as a reduction in the current contribution 
24.11 	requirements by an amount equal to the amortization of the excess expressed as a level 
24.12 	percentage of pay over a 30-year period beginning anew with each annual actuarial valuation 
24.13 	of the plan.

24.14 	EFFECTIVE DATE. This section is effective July 1, 2017.

24.15 	Sec. 25. Minnesota Statutes 2016, section 356.415, subdivision 1a, is amended to read:
24.16 		Subd. 1a.Annual postretirement adjustments; Minnesota State Retirement System 
24.17 	plans other than the State Patrol and judges retirement plan plans. (a) Retirement 
24.18 	annuity, disability benefit, or survivor benefit recipients of the legislators retirement plan, 
24.19 	including constitutional officers as specified in chapter 3A, the general state employees 
24.20 	retirement plan, the correctional state employees retirement plan, and the unclassified state 
24.21 	employees retirement program are entitled to a postretirement adjustment annually on, 
24.22 	effective as of each January 1, as follows:
24.23 	(1) for each successive January 1, if the definition of funding stability under paragraph 
24.24 	(b) has not been met as of the prior July 1 for or with respect to the applicable retirement 
24.25 	plan, a postretirement increase of two1.5 percent must be applied each year, effective on 
24.26 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
24.27 	been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the 
24.28 	calendar year immediately before the adjustment; and
24.29 	(2) for each successive January 1, if the definition of funding stability under paragraph 
24.30 	(b) has not been met as of the prior July 1 for or with respect to the applicable retirement 
24.31 	plan, for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
24.32 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
24.33 	year immediately before the adjustment, an annual postretirement increase of 1/12 of two
25.1 	1.5 percent for each month that the person has been receiving an annuity or benefit must 
25.2 	be applied to the monthly annuity or benefit amount of the annuitant or benefit recipient.
25.3 	(b) Increases under this subdivision for the general state employees retirement plan or 
25.4 	the correctional state employees retirement plan terminate on December 31 of the calendar 
25.5 	year in which two prior consecutive actuarial valuations prepared by the approved actuary 
25.6 	under sections 356.214 and 356.215 and the standards for actuarial work promulgated by 
25.7 	the Legislative Commission on Pensions and Retirement indicate that the market value of 
25.8 	assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability 
25.9 	of the retirement plan and increases under subdivision 1 recommence after that date. Increases 
25.10 	under this subdivision for the legislators retirement plan established under chapter 3A, 
25.11 	including the constitutional officers specified in that chapter, and for the unclassified state 
25.12 	employees retirement program, terminate on December 31 of the calendar year in which 
25.13 	two prior consecutive actuarial valuations prepared by the approved actuary under sections 
25.14 	356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative 
25.15 	Commission on Pensions and Retirement indicate that the market value of assets of the 
25.16 	general state employees retirement plan equals or exceeds 90 percent of the actuarial accrued 
25.17 	liability of the retirement plan and increases under subdivision 1 recommence after that 
25.18 	date.
25.19 	(c) After having met the definition of funding stability under paragraph (b), the increase 
25.20 	provided in paragraph (a), clauses (1) and (2), rather than an increase under subdivision 1, 
25.21 	for the general state employees retirement plan or the correctional state employees retirement 
25.22 	plan, is again to be applied in a subsequent year or years if the market value of assets of the 
25.23 	applicable plan equals or is less than:
25.24 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two consecutive 
25.25 	actuarial valuations; or
25.26 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most recent 
25.27 	actuarial valuation.
25.28 	(d) After having met the definition of funding stability under paragraph (b), the increase 
25.29 	provided in paragraph (a), clauses (1) and (2), rather than an increase under subdivision 1, 
25.30 	for the legislators retirement plan, including the constitutional officers, and for the 
25.31 	unclassified state employees retirement program, is again to be applied in a subsequent year 
25.32 	or years if the market value of assets of the general state employees retirement plan equals 
25.33 	or is less than:
26.1 	(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two consecutive 
26.2 	actuarial valuations; or
26.3 	(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most recent 
26.4 	actuarial valuation.
26.5 	(e)(b) An increase in annuity or benefit payments under this subdivision must be made 
26.6 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
26.7 	executive director of the applicable covered retirement plan requesting that the increase not 
26.8 	be made.

26.9 	EFFECTIVE DATE. This section is effective January 1, 2018.

26.10 	Sec. 26. Minnesota Statutes 2016, section 356.415, subdivision 1e, is amended to read:
26.11 		Subd. 1e.Annual postretirement adjustments; State Patrol retirement plan. (a) 
26.12 	Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol 
26.13 	retirement plan are entitled to a postretirement adjustment annually on, effective as of each
26.14 	January 1 if the definition of funding stability under paragraph (b) has not been met, as 
26.15 	follows:
26.16 	(1) a postretirement increase of one percent must be applied each year, effective on 
26.17 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
26.18 	been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the 
26.19 	calendar year immediately before the adjustment; and
26.20 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
26.21 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
26.22 	year immediately before the adjustment, an annual postretirement increase of 1/12 of one 
26.23 	percent for each month that the person has been receiving an annuity or benefit must be 
26.24 	applied to the monthly annuity or benefit amount of the annuitant or benefit recipient.
26.25 	(b) Increases under paragraph (a) for the State Patrol retirement plan terminate on 
26.26 	December 31 of the calendar year in which two prior consecutive actuarial valuations for 
26.27 	the plan prepared by the approved actuary under sections 356.214 and 356.215 and the 
26.28 	standards for actuarial work promulgated by the Legislative Commission on Pensions and 
26.29 	Retirement indicates that the market value of assets of the retirement plan equals or exceeds 
26.30 	85 percent of the actuarial accrued liability of the retirement plan. Thereafter, increases 
26.31 	under paragraph (a) become effective again on the December 31 of the calendar year in 
26.32 	which the actuarial valuation, or prior consecutive actuarial valuations for the plan prepared 
26.33 	by the approved actuary under sections 356.214 and 356.215 and the standards for actuarial 
27.1 	work promulgated by the Legislative Commission on Pensions and Retirement indicates 
27.2 	that the market value of the assets of the retirement plan equals or is less than 80 percent 
27.3 	of the actuarial accrued liability of the retirement plan for two years, or equals or is less 
27.4 	than 75 percent of the actuarial accrued liability of the retirement plan for one year and 
27.5 	increases under paragraph (c) commence after that date.
27.6 	(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol 
27.7 	retirement plan are entitled to a postretirement adjustment annually on January 1, as follows:
27.8 	(1) a postretirement increase of 1.5 percent must be applied each year, effective on 
27.9 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
27.10 	been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the 
27.11 	calendar year immediately before the adjustment; and
27.12 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
27.13 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
27.14 	year immediately before the adjustment, an annual postretirement increase of 1/12 of 1.5 
27.15 	percent for each month that the person has been receiving an annuity or benefit must be 
27.16 	applied.
27.17 	(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on 
27.18 	December 31 of the calendar year in which two prior consecutive actuarial valuations 
27.19 	prepared by the approved actuary under sections 356.214 and 356.215 and the standards 
27.20 	for actuarial work adopted by the Legislative Commission on Pensions and Retirement 
27.21 	indicates that the market value of assets of the retirement plan equals or exceeds 90 percent 
27.22 	of the actuarial accrued liability of the retirement plan and increases under subdivision 1 
27.23 	recommence after that date.
27.24 	(e)(b) An increase in annuity or benefit payments under this subdivision must be made 
27.25 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
27.26 	executive director of the applicable covered retirement plan requesting that the increase not 
27.27 	be made.

27.28 	EFFECTIVE DATE. This section is effective January 1, 2018.

27.29 	Sec. 27. Minnesota Statutes 2016, section 356.415, subdivision 1f, is amended to read:
27.30 		Subd. 1f.Annual postretirement adjustments; Minnesota State Retirement System 
27.31 	judges retirement plan. (a) The increases provided under this subdivision are in lieu of 
27.32 	increases under subdivision 1 or 1a for retirement annuity, disability benefit, or survivor 
27.33 	benefit recipients of the judges retirement plan.
28.1 	(b)(a) Retirement annuity, disability benefit, or survivor benefit recipients of the judges 
28.2 	retirement plan are entitled to a postretirement adjustment annually on, effective as of each 
28.3 	January 1 if the definition of funding stability under paragraph (b) has not been met, as 
28.4 	follows:
28.5 	(1) a postretirement increase of 1.75 percent must be applied each year, effective on 
28.6 	January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has 
28.7 	been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the 
28.8 	calendar year immediately before the adjustment; and
28.9 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
28.10 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
28.11 	year immediately before the adjustment, an annual postretirement increase of 1/12 of 1.75 
28.12 	percent for each month that the person has been receiving an annuity or benefit must be 
28.13 	applied to the monthly annuity or benefit amount of the annuitant or benefit recipient.
28.14 	(c)(b) Increases under this subdivisionparagraph (a) terminate on December 31 of the 
28.15 	calendar year in which two prior consecutive actuarial valuations prepared by the approved 
28.16 	actuary under sections 356.214 and 356.215 and the standards for actuarial work promulgated 
28.17 	by the Legislative Commission on Pensions and Retirement indicates that the market value 
28.18 	of assets of the judges retirement plan equals or exceeds 70 percent of the actuarial accrued 
28.19 	liability of the retirement plan. and increases under subdivision 1 or 1a, whichever is 
28.20 	applicable,paragraph (c) begin on the January 1 next followingafter that date.
28.21 	(c) Retirement annuity, disability benefit, or survivor benefit recipients of the judges 
28.22 	retirement plan are entitled to a postretirement adjustment annually, effective as of each 
28.23 	January 1 if the definition of funding stability under paragraph (d) has not been met, as 
28.24 	follows:
28.25 	(1) a postretirement increase of two percent must be applied each year to the monthly 
28.26 	annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity 
28.27 	or a benefit for at least 12 full months as of the June 30 of the calendar year immediately 
28.28 	before the adjustment; and
28.29 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
28.30 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
28.31 	year immediately before the adjustment, an annual postretirement increase of 1/12 of two 
28.32 	percent for each month that the person has been receiving an annuity or benefit must be 
28.33 	applied to the monthly annuity or benefit amount of the annuitant or benefit recipient.
29.1 	(d) Increases under paragraph (c) terminate on December 31 of the calendar year in 
29.2 	which two prior consecutive actuarial valuations prepared by the approved actuary under 
29.3 	section 356.214 and the standards for actuarial work promulgated by the Legislative 
29.4 	Commission on Pensions and Retirement indicate that the market value of assets of the 
29.5 	judges retirement plan equals or exceeds 90 percent of the actuarial accrued liability of the 
29.6 	retirement plan and increases under paragraph (e) begin after that date.
29.7 	(e) Retirement annuity, disability benefit, or survivor benefit recipients of the judges 
29.8 	retirement plan are entitled to a postretirement adjustment annually, effective as of each 
29.9 	January 1, as follows:
29.10 	(1) a postretirement increase of 2.5 percent must be applied each year to the monthly 
29.11 	annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity 
29.12 	or a benefit for at least 12 full months as of the June 30 of the calendar year immediately 
29.13 	before the adjustment; and
29.14 	(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit 
29.15 	for at least one full month, but less than 12 full months as of the June 30 of the calendar 
29.16 	year immediately before the adjustment, an annual postretirement increase of 1/12 of 2.5 
29.17 	percent for each month that the person has been receiving an annuity or benefit must be 
29.18 	applied to the monthly annuity or benefit amount of the annuitant or benefit recipient.
29.19 	(d)(f) An increase in annuity or benefit payments under this subdivision must be made 
29.20 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
29.21 	executive director of the applicable covered retirement plan requesting that the increase not 
29.22 	be made.

29.23 	EFFECTIVE DATE. This section is effective January 1, 2018.

29.24 	Sec. 28. [356.59] INTEREST RATES.
29.25 		Subdivision 1.Applicable interest rates. Whenever the payment of interest is required 
29.26 	with respect to any payment, including refunds, remittances, shortages, contributions, or 
29.27 	repayments, the rate of interest is the rate or rates specified in subdivisions 2 to 5 for each 
29.28 	public retirement plan.
29.29 		Subd. 2.Minnesota State Retirement System. The interest rates for all retirement plans 
29.30 	administered by the Minnesota State Retirement System are as follows:

29.31				Annual
		Monthly
	
29.32		before July 1, 2015
	8.5 percent
	0.71 percent
	
29.33		from July 1, 2015, to June 30, 2017
	8.0 percent
	0.667 percent
	
30.1		after June 30, 2017
	7.5 percent
	0.625 percent
	
30.2 		Subd. 3.Public Employees Retirement Association. The interest rates for all retirement 
30.3 	plans administered by the Public Employees Retirement Association are as follows:

30.4				Annual
		Monthly
	
30.5		before July 1, 2015
	8.5 percent
	0.71 percent
	
30.6		from July 1, 2015, to June 30, 2017
	8.0 percent
	0.667 percent
	
30.7		after June 30, 2017
	7.5 percent
	0.625 percent
	
30.8 		Subd. 4.Teachers Retirement Association. The interest rates for the retirement plan 
30.9 	administered by the Teachers Retirement Association are as follows:

30.10				Annual
		Monthly
	
30.11			8.5 percent
	0.71 percent
	
30.12 		Subd. 5.St. Paul Teachers Retirement Fund Association. The interest rates for the 
30.13 	retirement plan administered by the St. Paul Teachers Retirement Fund Association are as 
30.14 	follows:

30.15				Annual
		Monthly
	
30.16		before July 1, 2015
	8.5 percent
	0.71 percent
	
30.17		from July 1, 2015, to June 30, 2017
	8.0 percent
	0.667 percent
	
30.18		after June 30, 2017
	7.5 percent
	0.625 percent

30.19 	EFFECTIVE DATE. This section is effective July 1, 2017.

30.20 	Sec. 29. Minnesota Statutes 2016, section 490.121, subdivision 4, is amended to read:
30.21 		Subd. 4.Allowable service. (a) "Allowable service" means any calendar month, subject 
30.22 	to the service credit limit in subdivision 22, served as a judge at any time, during which the 
30.23 	judge received compensation for that service from the state, municipality, or county, 
30.24 	whichever applies, and for which the judge made any required member contribution. It also 
30.25 	includes any month served as a referee in probate for all referees in probate who were in 
30.26 	office before January 1, 1974.
30.27 	(b) "Allowable service" also means a period of authorized leave of absence for which 
30.28 	the judge has made a payment in lieu of contributions, not in an amount in excess of the 
30.29 	service credit limit under subdivision 22. To obtain the service credit, the judge shall pay 
30.30 	an amount equal to the normal cost of the judges retirement plan on the date of return from 
30.31 	the leave of absence, as determined in the most recent actuarial report for the plan filed with 
30.32 	the Legislative Commission on Pensions and Retirement, multiplied by the judge's average 
30.33 	monthly salary rate during the authorized leave of absence and multiplied by the number 
31.1 	of months of the authorized leave of absence, plus annual compound interest at the rate of 
31.2 	8.5 percent until June 30, 2015, and eight percent thereafter interest at the applicable annual 
31.3 	rate or rates specified in section 356.59, subdivision 2, compounded annually, from the date 
31.4 	of the termination of the leave to the date on which payment is made. The payment must 
31.5 	be made within one year of the date on which the authorized leave of absence terminated. 
31.6 	Service credit for an authorized leave of absence is in addition to a uniformed service leave 
31.7 	under section 490.1211.
31.8 	(c) "Allowable service" does not mean service as a retired judge.

31.9 	EFFECTIVE DATE. This section is effective July 1, 2017.

31.10 	Sec. 30. Minnesota Statutes 2016, section 490.1211, is amended to read:
31.11 	490.1211 UNIFORMED SERVICE.
31.12 	(a) A judge who is absent from employment by reason of service in the uniformed 
31.13 	services, as defined in United States Code, title 38, section 4303(13), and who returns to 
31.14 	state employment as a judge upon discharge from service in the uniformed service within 
31.15 	the time frame required in United States Code, title 38, section 4312(e), may obtain service 
31.16 	credit for the period of the uniformed service, provided that the judge did not separate from 
31.17 	uniformed service with a dishonorable or bad conduct discharge or under other than honorable 
31.18 	conditions.
31.19 	(b) The judge may obtain credit by paying into the fund equivalent member contribution 
31.20 	based on the contribution rate or rates in effect at the time that the uniformed service was 
31.21 	performed multiplied by the full and fractional years being purchased and applied to the 
31.22 	annual salary rate. The annual salary rate is the average annual salary during the purchase 
31.23 	period that the judge would have received if the judge had continued to provide employment 
31.24 	services to the state rather than to provide uniformed service, or if the determination of that 
31.25 	rate is not reasonably certain, the annual salary rate is the judge's average salary rate during 
31.26 	the 12-month period of judicial employment rendered immediately preceding the purchase 
31.27 	period.
31.28 	(c) The equivalent employer contribution and, if applicable, the equivalent employer 
31.29 	additional contribution, must be paid by the employing unit, using the employer and employer 
31.30 	additional contribution rate or rates in effect at the time that the uniformed service was 
31.31 	performed, applied to the same annual salary rate or rates used to compute the equivalent 
31.32 	member contribution.
32.1 	(d) If the member equivalent contributions provided for in this section are not paid in 
32.2 	full, the judge's allowable service credit must be prorated by multiplying the full and 
32.3 	fractional number of years of uniformed service eligible for purchase by the ratio obtained 
32.4 	by dividing the total member contributions received by the total member contributions 
32.5 	otherwise required under this section.
32.6 	(e) To receive allowable service credit under this section, the contributions specified in 
32.7 	this section and section 490.121 must be transmitted to the fund during the period which 
32.8 	begins with the date on which the individual returns to judicial employment and which has 
32.9 	a duration of three times the length of the uniformed service period, but not to exceed five 
32.10 	years. If the determined payment period is calculated to be less than one year, the 
32.11 	contributions required under this section to receive service credit may be within one year 
32.12 	from the discharge date.
32.13 	(f) The amount of allowable service credit obtainable under this section and section 
32.14 	490.121 may not exceed five years, unless a longer purchase period is required under United 
32.15 	States Code, title 38, section 4312.
32.16 	(g) The state court administrator shall pay interest on all equivalent member and employer 
32.17 	contribution amounts payable under this section. Interest must be computed at the rate of 
32.18 	8.5 percent until June 30, 2015, and eight percent thereafter at the applicable annual rate or 
32.19 	rates specified in section 356.59, subdivision 2, compounded annually, from the end of each 
32.20 	fiscal year of the leave or break in service to the end of the month in which payment is 
32.21 	received.

32.22 	EFFECTIVE DATE. This section is effective July 1, 2017.

32.23 	Sec. 31. Minnesota Statutes 2016, section 490.124, subdivision 12, is amended to read:
32.24 		Subd. 12.Refund.  (a) A person who ceases to be a judge is entitled to a refund in an 
32.25 	amount that is equal to all of the member's employee contributions to the judges' retirement 
32.26 	fund plus interest computed under section 352.22, subdivision 2.
32.27 	(b) A refund of contributions under paragraph (a) terminates all service credits and all 
32.28 	rights and benefits of the judge and the judge's survivors under this chapter.
32.29 	(c) A person who becomes a judge again after taking a refund under paragraph (a) may 
32.30 	reinstate the previously terminated allowable service credit, rights, and benefits by repaying 
32.31 	the total amount of the previously received refund. The refund repayment must include 
32.32 	interest on the total amount previously received at the annual rate of 8.5 percent until June 
32.33 	30, 2015, and eight percent thereafter at the applicable annual rate or rates specified in 
33.1 	section 356.59, subdivision 2, compounded annually, from the date on which the refund 
33.2 	was received until the date on which the refund is repaid.

33.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

33.4 	Sec. 32.  REPEALER.
 33.5 	Minnesota Statutes 2016, section 356.415, subdivision 1, is repealed.

33.6 	EFFECTIVE DATE. This section is effective January 1, 2018.

APPENDIX 

Repealed Minnesota Statutes: 17-2317 

356.415 POSTRETIREMENT ADJUSTMENTS; STATEWIDE RETIREMENT PLANS.Subdivision 1.Annual postretirement adjustments; generally. 
(a) Except as otherwise provided in subdivision 1a, 1b, 1c, 1d, 1e, or 1f, retirement annuity, disability benefit, or survivor benefit recipients of a covered retirement plan are entitled to a postretirement adjustment annually on January 1, as follows: 

(1) a postretirement increase of 2.5 percent must be applied each year, effective January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the calendar year immediately before the adjustment; and 

(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit amount for at least one full month, but less than 12 full months as of the June 30 of the calendar year immediately before the adjustment, an annual postretirement increase of 1/12 of 2.5 percent for each month that the person has been receiving an annuity or benefit must be applied. 

(b) An increase in annuity or benefit payments under this section must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the covered retirement plan requesting that the increase not be made.