1.1                                        A bill for an act&#10;1.2     relating to retirement; increasing Minnesota state retirement contributions; &#10;1.3     providing inclusions to correctional retirement plan; allowing coverage for &#10;1.4     prior service; allowing service credit transfers and purchases; modifying certain &#10;1.5     retirement plan administrative provisions; requiring certain reports; modifying &#10;1.6     certain retirement plan coverages; making changes to Social Security coverage; &#10;1.7     modifying investment authority; providing changes to certain retirement funds, &#10;1.8     plans, and associations; recodifying various plans; correcting coverage error;&#10;1.9     amending Minnesota Statutes 2004, sections 3A.01, subdivisions 1, 2, 6, 8, &#10;1.10    by adding subdivisions; 3A.011; 3A.02, subdivisions 1, 1b, 3, 4, 5; 3A.03, &#10;1.11    subdivisions 1, 2; 3A.04, subdivisions 1, 2, 3, 4, by adding a subdivision; &#10;1.12    3A.05; 3A.07; 3A.10, subdivision 1; 3A.12; 6.72; 69.77, subdivision 9; 136F.45, &#10;1.13    subdivision 1a; 352.04, subdivisions 2, 3; 352.113, subdivision 7a; 352.116, &#10;1.14    subdivisions 3a, 3b; 352.90; 352.91, subdivisions 1, 2, 3c, 3d, 3e, 3f, 3g, by &#10;1.15    adding subdivisions; 352.92, subdivisions 1, 2; 352B.02, subdivisions 1a, &#10;1.16    1c; 352C.091, subdivision 1; 352C.10; 352D.02, subdivision 1; 352D.04, &#10;1.17    subdivision 2; 352F.04; 353.01, subdivisions 2a, 11a, 11b, 12, 16, by adding &#10;1.18    a subdivision; 353.03, subdivisions 1, 1a, by adding a subdivision; 353.27, &#10;1.19    subdivisions 7, 7a, 7b; 353.29, subdivision 8; 353.30, subdivisions 3a, 3b; &#10;1.20    353.32, subdivisions 1a, 1b; 353.33, subdivisions 1, 9; 353.34, subdivision 1; &#10;1.21    353.656, subdivisions 3, 4, 6a; 353D.01, subdivision 2; 353D.02, subdivision 3, &#10;1.22    by adding subdivisions; 353D.03, by adding subdivisions; 353E.02, subdivision &#10;1.23    3; 353F.04; 354.45, subdivision 1a; 354A.08; 354A.28, subdivision 5; 354A.32, &#10;1.24    subdivision 1a; 354D.05; 355.01, subdivision 3g; 355.02, subdivisions 1, 3, &#10;1.25    by adding subdivisions; 356.219, subdivisions 3, 6; 356.24, subdivision 1; &#10;1.26    356.50; 423B.07; 424A.001, by adding a subdivision; 424A.02, subdivision 8b; &#10;1.27    424A.05, subdivision 3; 424A.10; 490.121, subdivisions 1, 6, 7, 13, 14, 15, &#10;1.28    22, by adding subdivisions; 490.122; 490.123, subdivisions 1, 1a, 1b, 1c, 2, 3; &#10;1.29    490.124, subdivisions 1, 2, 3, 4, 5, 8, 9, 10, 11, 12, 13; 490.125, subdivisions 1, &#10;1.30    2; 490.126, as amended; 490.133; 525.05; Minnesota Statutes 2005 Supplement, &#10;1.31    sections 353.01, subdivision 2d; 353.028, subdivision 3; 353.28, subdivision &#10;1.32    6; 353.656, subdivision 1; 353F.02, subdivision 4; 356A.06, subdivision 7; &#10;1.33    423B.09, subdivision 1; 490.121, subdivision 4;  Laws 2004, chapter 267, article &#10;1.34    8, section 41; Laws 2005, First Special Session chapter 8, article 6, section &#10;1.35    4; proposing coding for new law in Minnesota Statutes, chapters 352; 352C; &#10;1.36    353; 355; 423B; proposing coding for new law as Minnesota Statutes, chapter &#10;1.37    490A; repealing Minnesota Statutes 2004, sections 3A.01, subdivisions 3, 4, 6a, &#10;1.38    7; 3A.02, subdivision 2; 3A.04, subdivision 1a; 3A.09; 43A.34, subdivision &#10;2.1     1; 352C.01; 352C.011; 352C.021, subdivisions 1, 2, 3, 4, 5, 6, 7; 352C.031, &#10;2.2     subdivisions 1, 2, 4, 5, 6; 352C.033; 352C.04; 352C.051; 352C.09; 352C.091, &#10;2.3     subdivisions 2, 3; 490.021; 490.025; 490.101; 490.102; 490.103; 490.105; &#10;2.4     490.106; 490.107; 490.108; 490.109; 490.1091; 490.12; 490.121, subdivisions 2, &#10;2.5     3, 5, 8, 9, 10, 11, 12, 16, 17, 18, 19; 490.124, subdivision 6; 490.132; 490.15; &#10;2.6     490.16; 490.18; Minnesota Statutes 2005 Supplement, sections 352C.021, &#10;2.7     subdivision 1a; 490.121, subdivision 20.&#10;2.8     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:&#10;&#10;<a id="go.1.0.0"></a>2.9                                            <b>ARTICLE 1</b>&#10;2.10                               <b>MINNESOTA STATE RETIREMENT SYSTEM</b>&#10;2.11                                     <b>CONTRIBUTION INCREASES</b>&#10;&#10;<a id="go.1.1.0"></a>2.12        Section 1. Minnesota Statutes 2004, section 352.04, subdivision 2, is amended to read:&#10;2.13         Subd. 2. <b>Employee contributions.</b>  The employee contribution to the fund must be &#10;2.14    equal to <del>4.0</del> <ins>the following </ins>percent of salary<del>.</del><ins>:</ins> &#10;<rs_table>2.15       <ins>before July 1, 2007</ins><ins>4.00</ins>             &#10;2.16       <ins>from July 1, 2007, to June 30, 2008</ins><ins>4.25</ins>             &#10;2.17       <ins>from July 1, 2008, to June 30, 2009</ins><ins>4.50</ins>             &#10;2.18       <ins>from July 1, 2009, to June 30, 2010</ins><ins>4.75</ins>             &#10;2.19       <ins>from July 1, 2010, and thereafter</ins><ins>5.00.</ins>            &#10;</rs_table>2.20    These contributions must be made by deduction from salary as provided in &#10;2.21    subdivision 4.&#10;&#10;<a id="go.1.2.0"></a>2.22        Sec. 2. Minnesota Statutes 2004, section 352.04, subdivision 3, is amended to read:&#10;2.23         Subd. 3. <b>Employer contributions.</b>  The employer contribution to the fund must be &#10;2.24    equal to <del>4.0</del> <ins>the following </ins>percent of salary<del>.</del><ins>:</ins> &#10;<rs_table>2.25       <ins>before July 1, 2007</ins><ins>4.00</ins>             &#10;2.26       <ins>from July 1, 2007, to June 30, 2008</ins><ins>4.25</ins>             &#10;2.27       <ins>from July 1, 2008, to June 30, 2009</ins><ins>4.50</ins>             &#10;2.28       <ins>from July 1, 2009, to June 30, 2010</ins><ins>4.75</ins>             &#10;2.29       <ins>from July 1, 2010, and thereafter</ins><ins>5.00.</ins>            &#10;</rs_table>&#10;<a id="go.1.3.0"></a>2.30        Sec. 3. <ins><b>[352.045] PROCEDURE FOR REVISING EMPLOYEE AND </b></ins>&#10;2.31    <ins><b>EMPLOYER CONTRIBUTIONS IN CERTAIN INSTANCES.</b></ins>&#10;3.1         <ins>Subdivision 1.</ins> <ins><b>Application.</b></ins> <ins>This section applies to the general state employees </ins>&#10;3.2     <ins>retirement plan and the correctional state employees retirement plan under this chapter, </ins>&#10;3.3     <ins>and to the state patrol retirement plan under chapter 352B.</ins>&#10;3.4         <ins>Subd. 2.</ins> <ins><b>Determination.</b></ins> <ins>For purposes of this section, a contribution sufficiency </ins>&#10;3.5     <ins>exists if, for purposes of the applicable plan, the total of the employee contributions, </ins>&#10;3.6     <ins>the employer contributions, and any additional employer contributions, if applicable, </ins>&#10;3.7     <ins>exceeds the total of the normal cost, the administrative expenses, and the amortization </ins>&#10;3.8     <ins>contribution of the retirement plan as reported in the most recent actuarial valuation of the </ins>&#10;3.9     <ins>retirement plan prepared by the actuary retained under section 356.214 and prepared under </ins>&#10;3.10    <ins>section 356.215 and the standards for actuarial work of the Legislative Commission on </ins>&#10;3.11    <ins>Pensions and Retirement.  For purposes of this section, a contribution deficiency exists </ins>&#10;3.12    <ins>if, for the applicable plan, the total employee contributions, employer contributions, and </ins>&#10;3.13    <ins>any additional employer contributions are less than the total of the normal cost, the </ins>&#10;3.14    <ins>administrative expenses, and the amortization contribution of the retirement plan as </ins>&#10;3.15    <ins>reported in the most recent actuarial valuation of the retirement plan prepared by the </ins>&#10;3.16    <ins>actuary retained under section 356.214 and prepared under section 356.215 and the </ins>&#10;3.17    <ins>standards for actuarial work of the Legislative Commission on Pensions and Retirement.</ins>&#10;3.18        <ins>Subd. 3.</ins> <ins><b>Contribution rate revision.</b></ins> <ins>Notwithstanding the contribution rate </ins>&#10;3.19    <ins>provisions stated in plan law, the employee and employer contribution rates must be </ins>&#10;3.20    <ins>adjusted:</ins>&#10;3.21    <ins>(1) if, after July 1, 2011, the regular actuarial valuations of the applicable plan under </ins>&#10;3.22    <ins>section 356.215 indicate that there is a contribution sufficiency under subdivision 2 equal </ins>&#10;3.23    <ins>to or greater than 0.5 percent of covered payroll for two consecutive years, the employee </ins>&#10;3.24    <ins>and employer contribution rates for the applicable plan must be decreased as determined </ins>&#10;3.25    <ins>under subdivision 4 to a level such that the sufficiency equals no more than 0.25 percent of </ins>&#10;3.26    <ins>covered payroll based on the most recent actuarial valuation; or</ins>&#10;3.27    <ins>(2) if, after July 1, 2011, the regular actuarial valuations of the applicable plan under </ins>&#10;3.28    <ins>section 356.215 indicate that there is a deficiency equal to or greater than 0.5 percent of </ins>&#10;3.29    <ins>covered payroll for two consecutive years, the employee and employer contribution rates </ins>&#10;3.30    <ins>for the applicable plan must be increased as determined under subdivision 4 to a level such </ins>&#10;3.31    <ins>that no deficiency exists based on the most recent actuarial valuation.</ins>&#10;3.32        <ins>Subd. 4.</ins> <ins><b>Reporting, commission review.</b></ins> <ins>(a) The contribution rate increase or </ins>&#10;3.33    <ins>decrease must be determined by the executive director of the Minnesota State Retirement </ins>&#10;3.34    <ins>System, must be reported to the chair and the executive director of the Legislative </ins>&#10;3.35    <ins>Commission on Pensions and Retirement on or before the next February 1, and, if the </ins>&#10;3.36    <ins>Legislative Commission on Pensions and Retirement does not recommend against the </ins>&#10;4.1     <ins>rate change or does not recommend a modification in the rate change, is effective on the </ins>&#10;4.2     <ins>next July 1 following the determination by the executive director that a contribution </ins>&#10;4.3     <ins>deficiency or sufficiency has existed for two consecutive fiscal years based on the most </ins>&#10;4.4     <ins>recent actuarial valuations under section 356.215.  If the actuarially required contribution </ins>&#10;4.5     <ins>exceeds or is less than the total support provided by the combined employee and employer </ins>&#10;4.6     <ins>contribution rates for the applicable plan by more than 0.5 percent of covered payroll, the </ins>&#10;4.7     <ins>applicable plan employee and employer contribution rates must be adjusted incrementally </ins>&#10;4.8     <ins>over one or more years to a level such that there remains a contribution sufficiency of no </ins>&#10;4.9     <ins>more than 0.25 percent of covered payroll.</ins>&#10;4.10    <ins>(b) No incremental adjustment may exceed 0.25 percent of payroll for either the </ins>&#10;4.11    <ins>employee or employer contribution rates per year in which any adjustment is implemented. </ins>&#10;4.12    <ins>For an applicable plan, a contribution rate adjustment under this section must not be </ins>&#10;4.13    <ins>made until at least two years have passed since fully implementing a previous adjustment </ins>&#10;4.14    <ins>under this section.</ins>&#10;&#10;<a id="go.1.4.0"></a>4.15        Sec. 4. Minnesota Statutes 2004, section 352.92, subdivision 1, is amended to read:&#10;4.16         Subdivision 1. <b>Employee contributions.</b>  Employee contributions of covered &#10;4.17    correctional employees must be in an amount equal to <del>5.69</del> <ins>the following </ins>percent of salary<del>.</del><ins>:</ins> &#10;<rs_table>4.18       <ins>before July 1, 2007</ins><ins>5.69</ins>             &#10;4.19       <ins>from July 1, 2007, to June 30, 2008</ins><ins>6.40</ins>             &#10;4.20       <ins>from July 1, 2008, to June 30, 2009</ins><ins>7.00</ins>             &#10;4.21       <ins>from July 1, 2009, to June 30, 2010</ins><ins>7.70</ins>             &#10;4.22       <ins>from July 1, 2010, and thereafter</ins><ins>8.60.</ins>            &#10;</rs_table>4.23    <ins>These contributions must be made by deduction from salary as provided in section </ins>&#10;4.24    <ins>352.04, subdivision 4.</ins>&#10;&#10;<a id="go.1.5.0"></a>4.25        Sec. 5. Minnesota Statutes 2004, section 352.92, subdivision 2, is amended to read:&#10;4.26         Subd. 2. <b>Employer contributions.</b>  The employer shall contribute for covered &#10;4.27    correctional employees an amount equal to <del>7.98</del> <ins>the following </ins>percent of salary<del>.</del><ins>:</ins> &#10;<rs_table>4.28       <ins>before July 1, 2007</ins><ins>7.98</ins>             &#10;4.29       <ins>from July 1, 2007, to June 30, 2008</ins><ins>9.10</ins>             &#10;4.30       <ins>from July 1, 2008, to June 30, 2009</ins><ins>10.10</ins>            &#10;5.1        <ins>from July 1, 2009, to June 30, 2010</ins><ins>11.10</ins>            &#10;5.2        <ins>from July 1, 2010, and thereafter</ins><ins>12.10.</ins>           &#10;</rs_table>&#10;<a id="go.1.6.0"></a>5.3         Sec. 6. Minnesota Statutes 2004, section 352B.02, subdivision 1a, is amended to read:&#10;5.4          Subd. 1a. <b>Member contributions.</b>  Each member shall pay a sum equal to <del>8.40</del> <ins>the </ins>&#10;5.5     <ins>following </ins>percent of the member's salary, which shall constitute the member contribution &#10;5.6     to the fund<del>.</del><ins>:</ins> &#10;<rs_table>5.7        <ins>before July 1, 2007</ins><ins>8.40</ins>             &#10;5.8        <ins>from July 1, 2007, to June 30, 2008</ins><ins>9.10</ins>             &#10;5.9        <ins>from July 1, 2008, to June 30, 2009</ins><ins>9.80</ins>             &#10;5.10       <ins>from July 1, 2009, and thereafter</ins><ins>10.40.</ins>           &#10;</rs_table>5.11    <ins>These contributions must be made by deduction from salary as provided in section </ins>&#10;5.12    <ins>352.04, subdivision 4.</ins>&#10;&#10;<a id="go.1.7.0"></a>5.13        Sec. 7. Minnesota Statutes 2004, section 352B.02, subdivision 1c, is amended to read:&#10;5.14         Subd. 1c. <b>Employer contributions.</b>  In addition to member contributions, &#10;5.15    department heads shall pay a sum equal to <del>12.60</del> <ins>the following </ins>percent of the salary upon &#10;5.16    which deductions were made, which shall constitute the employer contribution to the fund<del>.</del><ins>:</ins> &#10;<rs_table>5.17       <ins>before July 1, 2007</ins><ins>12.60</ins>            &#10;5.18       <ins>from July 1, 2007, to June 30, 2008</ins><ins>13.60</ins>            &#10;5.19       <ins>from July 1, 2008, to June 30, 2009</ins><ins>14.60</ins>            &#10;5.20       <ins>from July 1, 2009, and thereafter</ins><ins>15.60.</ins>           &#10;</rs_table>5.21    Department contributions must be paid out of money appropriated to departments &#10;5.22    for this purpose.&#10;&#10;<a id="go.1.8.0"></a>5.23        Sec. 8. Minnesota Statutes 2004, section 352D.04, subdivision 2, is amended to read:&#10;5.24         Subd. 2. <b>Contribution rates.</b>  (a) The money used to purchase shares under this &#10;5.25    section is the employee and employer contributions provided in this subdivision.&#10;5.26     (b) The employee contribution is an amount equal to <del>the employee contribution </del>&#10;5.27    <del>specified in section 352.04, subdivision 2 </del> <ins>four percent of salary</ins>.&#10;5.28     (c) The employer contribution is an amount equal to six percent of salary.&#10;5.29     (d) These contributions must be made in the manner provided in section 352.04, &#10;5.30    subdivisions 4, 5, and 6.&#10;6.1      (e) For members of the legislature, the contributions under this subdivision also must &#10;6.2     be made on per diem payments received during a regular or special legislative session, but &#10;6.3     may not be made on per diem payments received outside of a regular or special legislative &#10;6.4     session, on the additional compensation attributable to a leadership position under section &#10;6.5     3.099, subdivision 3, living expense payments under section 3.101, or special session &#10;6.6     living expense payments under section 3.103.&#10;6.7      (f) For a judge who is a member of the unclassified plan under section 352D.02, &#10;6.8     subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent &#10;6.9     of salary, and there is no employer contribution.&#10;&#10;<a id="go.1.9.0"></a>6.10        Sec. 9. <ins><b>EFFECTIVE DATE.</b></ins>&#10;6.11    <ins>(a) Sections 1, 2, 3, and 8 are effective July 1, 2007.</ins>&#10;6.12    <ins>(b) Sections 4, 5, 6, and 7 are effective July 1, 2006.</ins>&#10;&#10;<a id="go.2.0.0"></a>6.13                                           <b>ARTICLE 2</b>&#10;6.14                          <b>MSRS-CORRECTIONAL RETIREMENT PLAN INCLUSIONS</b>&#10;&#10;<a id="go.2.1.0"></a>6.15        Section 1. Minnesota Statutes 2004, section 352.90, is amended to read:&#10;6.16    <b>352.90 POLICY.</b>&#10;6.17    It is the policy of the legislature to provide special retirement benefits <ins>for </ins>and <ins>special </ins>&#10;6.18    contributions <del>for</del> <ins>by </ins>certain correctional employees who may be required to retire at &#10;6.19    an early age because they lose the mental or physical capacity required to maintain the &#10;6.20    safety, security, discipline, and custody of inmates at state correctional facilities or of &#10;6.21    patients at the Minnesota Security Hospital <del>or at</del><ins>, of patients in</ins> the Minnesota <del>Sexual </del>&#10;6.22    <del>Psychopathic Personality Treatment Center</del> <ins>Sex Offender Program, </ins>or of patients in the &#10;6.23    Minnesota extended treatment options <del>on-campus</del> program <del>at the Cambridge Regional </del>&#10;6.24    <del>Human Services Center</del>.&#10;&#10;<a id="go.2.2.0"></a>6.25        Sec. 2. Minnesota Statutes 2004, section 352.91, subdivision 1, is amended to read:&#10;6.26        Subdivision 1. <b>Qualifying jobs.</b> "Covered correctional service" means service &#10;6.27    performed by a state employee, as defined in section  352.01, employed at a state &#10;6.28    correctional facility, the Minnesota Security Hospital, or the Minnesota <del>Sexual </del>&#10;6.29    <del>Psychopathic Personality Treatment Center</del> <ins>Sex Offender Program </ins>as: &#10;6.30    (1) a corrections officer 1;&#10;6.31    (2) a corrections officer 2;&#10;6.32    (3) a corrections officer 3;&#10;6.33    (4) a corrections officer supervisor;&#10;7.1     (5) a corrections <del>officer 4</del><ins> lieutenant</ins>;&#10;7.2     (6) a corrections captain;&#10;7.3     (7) a security counselor; <del>or</del>&#10;7.4     (8) a security counselor lead<ins>; or</ins>&#10;7.5     <ins>(9) a corrections canine officer</ins>.&#10;&#10;<a id="go.2.3.0"></a>7.6         Sec. 3. Minnesota Statutes 2004, section 352.91, subdivision 2, is amended to read:&#10;7.7         Subd. 2. <b>Maintenance</b><ins><b>, correctional industry, </b></ins><b> and trades.</b> "Covered correctional &#10;7.8     service" also means service rendered at any time by state employees as maintenance &#10;7.9     personnel <del>and</del><ins>, correctional industry personnel, or </ins> members of trades certified by the &#10;7.10    commissioner of employee relations <ins>to the executive director </ins>as being <del>regularly</del> engaged &#10;7.11    <ins>for at least 75 percent of the employee's working time </ins>in <ins>the </ins>rehabilitation, treatment, &#10;7.12    custody, or supervision of inmates at a Minnesota correctional facility, or of patients at &#10;7.13    the Minnesota Security Hospital or <del>at</del> the Minnesota <del>Sexual Psychopathic Personality </del>&#10;7.14    <del>Treatment Center</del><ins> Sex Offender Program</ins>.&#10;&#10;<a id="go.2.4.0"></a>7.15        Sec. 4. Minnesota Statutes 2004, section 352.91, subdivision 3c, is amended to read:&#10;7.16        Subd. 3c. <b>Nursing personnel.</b> (a) "Covered correctional service" means service by &#10;7.17    a state employee in one of the employment positions at a correctional facility or at the &#10;7.18    Minnesota Security Hospital<ins>, or in the Minnesota Sex Offender Program that are </ins>specified &#10;7.19    in paragraph (b)<del>, provided that</del><ins> if </ins> at least 75 percent of the employee's working time is &#10;7.20    spent in direct contact with inmates or patients and the fact of this direct contact is certified &#10;7.21    to the executive director by the appropriate commissioner<del>, unless the person elects to </del>&#10;7.22    <del>retain the current retirement </del><del>coverage under Laws 1996, chapter 408, article 8, section 21</del>.&#10;7.23    (b) The employment positions are as follows:&#10;7.24    (1) registered nurse - senior;&#10;7.25    (2) registered nurse;&#10;7.26    (3) registered nurse - principal;&#10;7.27    (4) licensed practical nurse 2; and&#10;7.28    (5) registered nurse <del>practitioner</del><ins> advance practice</ins>.&#10;&#10;<a id="go.2.5.0"></a>7.29        Sec. 5. Minnesota Statutes 2004, section 352.91, subdivision 3d, is amended to read:&#10;7.30        Subd. 3d. <b>Other correctional personnel.</b> (a) "Covered correctional service" means &#10;7.31    service by a state employee in one of the employment positions at a correctional facility or &#10;7.32    at the Minnesota Security Hospital specified in paragraph (b)<del>, provided that</del><ins> if </ins> at least 75 &#10;7.33    percent of the employee's working time is spent in direct contact with inmates or patients &#10;8.1     and the fact of this direct contact is certified to the executive director by the appropriate &#10;8.2     commissioner<del>, unless the person elects to retain the current retirement coverage under </del>&#10;8.3     <del>Laws 1996, chapter 408, article 8, section 21</del>.&#10;8.4     (b) The employment positions are as follows: baker<del>,</del><ins>; central services administrative </ins>&#10;8.5     <ins>specialist, intermediate; central services administrative specialist, principal; chaplain;</ins> &#10;8.6     chemical dependency counselor supervisor<del>,</del><ins>;</ins> chief cook<del>,</del><ins>;</ins> cook<del>,</del><ins>;</ins> cook coordinator<del>, </del>&#10;8.7     <del>corrections behavior therapist, corrections behavior therapist specialist, corrections parent </del>&#10;8.8     <del>education coordinator,</del><ins>; corrections program therapist 1; corrections program therapist 2; </ins>&#10;8.9     <ins>corrections program therapist 3; corrections inmate program coordinator; corrections </ins>&#10;8.10    <ins>transitions program coordinator;</ins> corrections security caseworker<del>,</del><ins>;</ins> corrections security &#10;8.11    caseworker career<del>,</del><ins>;</ins> corrections teaching assistant<del>,</del><ins>;</ins> <ins>delivery van driver;</ins> dentist<del>,</del><ins>;</ins> electrician &#10;8.12    supervisor<del>,</del><ins>; general maintenance worker;</ins> general repair worker<del>,</del><ins>; laundry coordinator;</ins> &#10;8.13    library/information research services specialist<del>,</del><ins>;</ins> library/information research services &#10;8.14    specialist senior<del>,</del><ins>; library technician;</ins> plumber supervisor<del>,</del><ins>; psychologist 1;</ins> psychologist &#10;8.15    3<del>,</del><ins>;</ins> recreation therapist<del>,</del><ins>;</ins> recreation therapist coordinator<del>,</del><ins>;</ins> recreation program assistant<del>,</del><ins>;</ins> &#10;8.16    recreation therapist senior<del>, stores clerk senior,</del><ins>; sports medicine specialist;</ins> water treatment &#10;8.17    plant operator<del>, work therapy technician,</del><ins>;</ins> work therapy assistant<del>,</del><ins>;</ins> work therapy program &#10;8.18    coordinator<ins>; and work therapy technician</ins>.&#10;8.19    <del>(c) "Covered correctional service" also means service as the director or as an </del>&#10;8.20    <del>assistant group supervisor of the Phoenix/Pomiga treatment/behavior change program of </del>&#10;8.21    <del>the Department of Corrections.</del>&#10;&#10;<a id="go.2.6.0"></a>8.22        Sec. 6. Minnesota Statutes 2004, section 352.91, subdivision 3e, is amended to read:&#10;8.23        Subd. 3e. <b>Minnesota extended treatment options program</b><del><b>; Cambridge</b></del><b>.</b> <ins>(a) </ins>&#10;8.24    "Covered correctional service" means service by a state employee in one of the <del>following</del> &#10;8.25    employment positions with the Minnesota extended treatment options <del>on-campus</del> program &#10;8.26    <del>at the Cambridge Regional Human Services Center</del><ins> specified in paragraph (b)</ins> if at least 75 &#10;8.27    percent of the employee's working time is spent in direct contact with patients who are &#10;8.28    in the Minnesota extended treatment options program and if service in such a position &#10;8.29    is certified to the executive director by the commissioner of human services<del>, unless the</del> &#10;8.30    <del>person elects to retain current retirement coverage under </del><del>section 6</del><ins>.</ins>&#10;8.31    <ins>(b) The employment positions are</ins>:&#10;8.32    (1) behavior analyst <del>I</del><ins> 1</ins>;&#10;8.33    (2) <ins>behavior analyst 2;</ins>&#10;8.34    <ins>(3) behavior analyst 3;</ins>&#10;8.35    <ins>(4) group supervisor;</ins>&#10;9.1     <ins>(5) group supervisor assistant;</ins>&#10;9.2     <ins>(6) </ins>human services support specialist;&#10;9.3     <del>(3)</del> <ins>(7) </ins>mental retardation residential program lead;&#10;9.4     <del>(4)</del> <ins>(8) </ins>psychologist 2;&#10;9.5     <del>(5)</del> <ins>(9) </ins>recreation program assistant;&#10;9.6     <del>(6)</del> <ins>(10) </ins>recreation therapist senior;&#10;9.7     <del>(7) </del><ins> (11) </ins>registered nurse senior;&#10;9.8     <del>(8)</del> <ins>(12) </ins>skills development specialist; <del>and</del>&#10;9.9     <del>(9)</del> <ins>(13) </ins>social worker senior<ins>;</ins>&#10;9.10    <ins>(14) social worker specialist; and</ins>&#10;9.11    <ins>(15) speech pathology specialist</ins>.&#10;&#10;<a id="go.2.7.0"></a>9.12        Sec. 7. Minnesota Statutes 2004, section 352.91, subdivision 3f, is amended to read:&#10;9.13        Subd. 3f. <b>Additional Department of Human Services personnel.</b> (a) "Covered &#10;9.14    correctional service" means service by a state employee in one of the employment &#10;9.15    positions specified in paragraph (b) at the Minnesota Security Hospital or <ins>in </ins>the Minnesota &#10;9.16    <del>Sexual Psychopathic Personality Treatment Center</del><del>, provided that</del> <ins>Sex Offender Program if </ins>&#10;9.17    at least 75 percent of the employee's working time is spent in direct contact with patients &#10;9.18    and the <del>fact</del> <ins>determination </ins>of this direct contact is certified to the executive director by the &#10;9.19    commissioner of human services.&#10;9.20    (b) The employment positions are:&#10;9.21    (1) behavior analyst 2;&#10;9.22    (2) <del>licensed practical nurse 1</del><ins> behavior analyst 3</ins>;&#10;9.23    (3) <ins>chemical dependency counselor senior;</ins>&#10;9.24    <ins>(4) client advocate;</ins>&#10;9.25    <ins>(5) dental assistant registered;</ins>&#10;9.26    <ins>(6) group supervisor;</ins>&#10;9.27    <ins>(7) group supervisor assistant;</ins>&#10;9.28    <ins>(8) licensed practical nurse 1;</ins>&#10;9.29    <ins>(9) occupational therapist;</ins>&#10;9.30    <ins>(10) occupational therapist, senior;</ins>&#10;9.31    <ins>(11) </ins>office and administrative specialist senior;&#10;9.32    <del>(4)</del><ins> (12) psychologist 1;</ins>&#10;9.33    <ins>(13)</ins> psychologist 2;&#10;9.34    <del>(5)</del><ins> (14) psychologist 3;</ins>&#10;9.35    <ins>(15) recreation program assistant;</ins>&#10;10.1    <ins>(16) recreation therapist senior;</ins>&#10;10.2    <ins>(17) rehabilitation counselor senior;</ins>&#10;10.3    <ins>(18) skills development specialist;</ins>&#10;10.4    <ins>(19) </ins> social worker <ins>senior;</ins>&#10;10.5    <ins>(20) social worker </ins>specialist;&#10;10.6    <del>(6) behavior analyst 3</del><ins> (21) social worker specialist, senior;</ins>&#10;10.7    <ins>(22) speech pathology clinician;</ins>&#10;10.8    <ins>(23) work therapy assistant</ins>; and&#10;10.9    <del>(7) social worker senior</del><ins> (24) work therapy program coordinator</ins>.&#10;&#10;<a id="go.2.8.0"></a>10.10       Sec. 8. Minnesota Statutes 2004, section 352.91, subdivision 3g, is amended to read:&#10;10.11       Subd. 3g. <b>Additional Corrections Department personnel.</b> (a) "Covered &#10;10.12   correctional service" means service by a state employee in one of the employment &#10;10.13   positions <del>at the designated Minnesota correctional facility</del> specified in paragraph (b) if at &#10;10.14   least 75 percent of the employee's working time is spent in direct contact with inmates &#10;10.15   and the <del>fact</del> <ins>determination </ins>of this direct contact is certified to the executive director by &#10;10.16   the commissioner of corrections.&#10;10.17   (b) The qualifying employment positions <del>and the designated correctional facilities</del> &#10;10.18   are:&#10;10.19   (1) corrections discipline unit supervisor<del>, at the Minnesota Correctional </del>&#10;10.20   <del>Facility-Faribault, the Minnesota Correctional Facility-Lino Lakes, the Minnesota </del>&#10;10.21   <del>Correctional Facility-Oak Park Heights, the Minnesota Correctional Facility-Rush City, </del>&#10;10.22   <del>and the Minnesota Correctional Facility-St. Cloud</del>;&#10;10.23   (2) dental assistant registered<del>, at the Minnesota Correctional Facility-Faribault, the </del>&#10;10.24   <del>Minnesota Correctional Facility-Lino Lakes, the Minnesota Correctional Facility-Moose </del>&#10;10.25   <del>Lake, the Minnesota Correctional Facility-Oak Park Heights, and the Minnesota </del>&#10;10.26   <del>Correctional Facility-Red Wing</del>;&#10;10.27   (3) dental hygienist<del>, at the Minnesota Correctional Facility-Shakopee and the </del>&#10;10.28   <del>Minnesota Correctional Facility-Rush City</del>;&#10;10.29   (4) psychologist 2<del>, at the Minnesota Correctional Facility-Faribault, the Minnesota </del>&#10;10.30   <del>Correctional Facility-Lino Lakes, the Minnesota Correctional Facility-Moose Lake, </del>&#10;10.31   <del>the Minnesota Correctional Facility-Oak Park Heights, the Minnesota Correctional </del>&#10;10.32   <del>Facility-Red Wing, the Minnesota Correctional Facility-Rush City, the Minnesota </del>&#10;10.33   <del>Correctional Facility-St. Cloud, the Minnesota Correctional Facility-Shakopee, and the </del>&#10;10.34   <del>Minnesota Correctional Facility-Stillwater</del>; <del>or</del><ins> and</ins>&#10;11.1    (5) sentencing to service crew leader involved with the inmate community work &#10;11.2    crew program<del>, at the Minnesota Correctional Facility-Faribault and the Minnesota </del>&#10;11.3    <del>Correctional Facility-Lino Lakes</del>.&#10;&#10;<a id="go.2.9.0"></a>11.4        Sec. 9. Minnesota Statutes 2004, section 352.91, is amended by adding a subdivision &#10;11.5    to read:&#10;11.6        <ins>Subd. 3h.</ins> <ins><b>Employment occupation name changes.</b></ins> <ins>(a) If the occupational title of a </ins>&#10;11.7    <ins>state employee covered by the Minnesota correctional employees retirement plan changes </ins>&#10;11.8    <ins>from the applicable title listed in subdivision 1, 2, 2a, 3c, 3d, 3e, 3f, or 3g, qualification for </ins>&#10;11.9    <ins>coverage by the correctional state employees retirement plan continues until the July 1 </ins>&#10;11.10   <ins>next following the title change if the commissioner of employee relations certifies to the </ins>&#10;11.11   <ins>executive director of the Minnesota State Retirement System and to the executive director </ins>&#10;11.12   <ins>of the Legislative Commission on Pensions and Retirement that the duties, requirements, </ins>&#10;11.13   <ins>and responsibilities of the new occupational title are substantially identical to the duties, </ins>&#10;11.14   <ins>requirements, and responsibilities of the prior occupational title.</ins>&#10;11.15   <ins>(b) If the commissioner of employee relations does not certify a new occupational </ins>&#10;11.16   <ins>title under paragraph (a), eligibility for future correctional state employees retirement </ins>&#10;11.17   <ins>coverage terminates as of the start of the first payroll period next following the effective </ins>&#10;11.18   <ins>date of the occupational title change.</ins>&#10;11.19   <ins>(c) For consideration by the Legislative Commission on Pensions and Retirement </ins>&#10;11.20   <ins>during the legislative session next following an occupational title change involving a </ins>&#10;11.21   <ins>state employee in covered correctional service, the commissioner of employee relations </ins>&#10;11.22   <ins>shall submit the applicable draft proposed legislation accommodating the occupational </ins>&#10;11.23   <ins>title change in this section.</ins>&#10;&#10;<a id="go.2.10.0"></a>11.24       Sec. 10. Minnesota Statutes 2004, section 352.91, is amended by adding a subdivision &#10;11.25   to read:&#10;11.26       <ins>Subd. 3i.</ins> <ins><b>Lateral transfers to new correctional facilities.</b></ins> <ins>If a new correctional </ins>&#10;11.27   <ins>facility is established, a state employee rendering covered correctional service immediately </ins>&#10;11.28   <ins>before the transfer remains eligible for coverage by the correctional state employees </ins>&#10;11.29   <ins>retirement plan for future state employment at the new facility if the person is employed in </ins>&#10;11.30   <ins>the same occupational title at the new facility.  The eligibility for future coverage continues </ins>&#10;11.31   <ins>until the July 1 next following the effective date of the establishment of the new facility.</ins>&#10;&#10;<a id="go.2.11.0"></a>11.32       Sec. 11. Minnesota Statutes 2004, section 352.91, is amended by adding a subdivision &#10;11.33   to read:&#10;12.1        <ins>Subd. 4b.</ins> <ins><b>Department of Corrections; procedure for coverage change </b></ins>&#10;12.2    <ins><b>considerations.</b></ins> <ins>(a) The commissioner of corrections shall appoint a standing review </ins>&#10;12.3    <ins>committee to review and determine positions that should be included in legislative </ins>&#10;12.4    <ins>requests for correctional employees retirement plan coverage under subdivision 4a.</ins>&#10;12.5    <ins>(b) Periodically, the Department of Corrections will convene meetings of the </ins>&#10;12.6    <ins>review committee. The review committee must review all requests and the supporting </ins>&#10;12.7    <ins>documentation for coverage by the correctional employees retirement plan and must </ins>&#10;12.8    <ins>determine which classes or positions meet the statutory requirements for coverage. The </ins>&#10;12.9    <ins>review committee also must determine if incumbents of and recent retirees from classes or </ins>&#10;12.10   <ins>positions determined for inclusion in correctional employees retirement plan coverage </ins>&#10;12.11   <ins>have prior Department of Corrections employment which also qualified as correctional </ins>&#10;12.12   <ins>service and which should be transferred from the general state employees retirement plan </ins>&#10;12.13   <ins>to the plan and the initial date for each potential service credit transfer.</ins>&#10;12.14   <ins>(c) The department must provide a notice of each determination and of the </ins>&#10;12.15   <ins>employee's right to appeal from the review committee to each employee who requested </ins>&#10;12.16   <ins>inclusion. Appeals must be filed with the agency human resource manager within 30 days </ins>&#10;12.17   <ins>of the date of the notice of determination.</ins>&#10;12.18   <ins>(d) The commissioner of corrections shall appoint a standing appeals committee to </ins>&#10;12.19   <ins>hear appeals of determinations for coverage. The appeal committee must include relevant </ins>&#10;12.20   <ins>department employees and employee representatives. Appeal committee determinations </ins>&#10;12.21   <ins>are final.</ins>&#10;12.22   <ins>(e) All positions approved for inclusion must be forwarded to the commissioner </ins>&#10;12.23   <ins>of corrections for the preparation of legislation to implement the coverage change and </ins>&#10;12.24   <ins>submission. The commissioner will submit a written recommendation documenting </ins>&#10;12.25   <ins>classes or positions that should or should not be covered by the correctional employees </ins>&#10;12.26   <ins>retirement plan. Documentation of each request and the final determination must be </ins>&#10;12.27   <ins>retained in the Department of Corrections' office of human resource management.</ins>&#10;&#10;<a id="go.2.12.0"></a>12.28       Sec. 12. <ins><b>COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN </b></ins>&#10;12.29   <ins><b>PERSONS.</b></ins>&#10;12.30       <ins>Subdivision 1.</ins> <ins><b>Election of prior state coverage.</b></ins> <ins>(a) An employee in the </ins>&#10;12.31   <ins>occupational position of laundry coordinator or delivery van driver at the Minnesota </ins>&#10;12.32   <ins>Correctional Facility-Faribault who has future retirement coverage transferred to the </ins>&#10;12.33   <ins>correctional state employees retirement plan under section 5 is entitled to elect to obtain </ins>&#10;12.34   <ins>prior service credit for eligible correctional state service performed after June 30, 1997, </ins>&#10;12.35   <ins>and before July 1, 2006, with the Department of Corrections and an employee who had </ins>&#10;13.1    <ins>future retirement coverage transferred to the correctional state employees retirement </ins>&#10;13.2    <ins>plan under Laws 2004, chapter 267, article 1, section 1, is entitled to elect to obtain </ins>&#10;13.3    <ins>prior service credit for eligible correctional state service performed at the Minnesota </ins>&#10;13.4    <ins>Correctional Facility-Rush City before August 1, 2004. All prior service credit in either </ins>&#10;13.5    <ins>instance must be purchased.</ins>&#10;13.6    <ins>(b) Eligible correctional state service is either a prior period of continuous service </ins>&#10;13.7    <ins>after June 30, 1997, at the Minnesota Correctional Facility-Faribault, or a prior period </ins>&#10;13.8    <ins>of continuous service at the Minnesota Correctional Facility-Rush City before August 1, </ins>&#10;13.9    <ins>2004, whichever applies, performed as an employee of the Department of Corrections that </ins>&#10;13.10   <ins>would have been eligible for the correctional state employees retirement plan coverage </ins>&#10;13.11   <ins>under section 1, if that prior service had been performed after August 1, 2004, or June 30, </ins>&#10;13.12   <ins>2006, rather than before August 1, 2004, or July 1, 2006, whichever applies. Service is </ins>&#10;13.13   <ins>continuous if there has been no period of discontinuation of eligible state service for a </ins>&#10;13.14   <ins>period greater than 30 calendar days.</ins>&#10;13.15   <ins>(c) The commissioner of corrections shall certify eligible correctional state service </ins>&#10;13.16   <ins>to the commissioner of employee relations and to the executive director of the Minnesota </ins>&#10;13.17   <ins>State Retirement System.</ins>&#10;13.18   <ins>(d) A correctional employee covered under section 1 is entitled to purchase the past </ins>&#10;13.19   <ins>service if the department certifies that the employee met the eligibility requirements for </ins>&#10;13.20   <ins>coverage. The employee must make additional employee contributions. Payment for past </ins>&#10;13.21   <ins>service must be completed by June 30, 2007.</ins>&#10;13.22       <ins>Subd. 2.</ins> <ins><b>Payment for prior service.</b></ins> <ins>(a) An employee electing to obtain prior </ins>&#10;13.23   <ins>service credit under subdivision 1 must pay an additional employee contribution for </ins>&#10;13.24   <ins>that prior service. The additional member contribution is the contribution differential </ins>&#10;13.25   <ins>percentage applied to the actual salary paid to the employee during the period of the </ins>&#10;13.26   <ins>prior eligible correctional state service, plus interest at the rate of 8.5 percent per annum, </ins>&#10;13.27   <ins>compounded annually. The contribution differential percentage is the difference between </ins>&#10;13.28   <ins>5.69 percent of salary and the applicable employee contribution rate of the general state </ins>&#10;13.29   <ins>employees retirement plan during the period of the prior eligible correctional state service.</ins>&#10;13.30   <ins>(b) The additional member contribution may be paid only in a lump sum. Payment </ins>&#10;13.31   <ins>must accompany the election to obtain prior service credit. No election or payment may </ins>&#10;13.32   <ins>be made by the person or accepted by the executive director of the Minnesota State </ins>&#10;13.33   <ins>Retirement System after June 30, 2007.</ins>&#10;13.34       <ins>Subd. 3.</ins> <ins><b>Transfer of assets.</b></ins> <ins>(a) Assets must be transferred from the general state </ins>&#10;13.35   <ins>employees retirement plan to the correctional state employees retirement plan in an </ins>&#10;13.36   <ins>amount equal to the present value of benefits earned under the general state employees </ins>&#10;14.1    <ins>retirement plan for each employee transferring to the correctional state employees </ins>&#10;14.2    <ins>retirement plan under this section, as determined by the actuary retained under Minnesota </ins>&#10;14.3    <ins>Statutes, section 356.214, in accordance with Minnesota Statutes, section 356.215, </ins>&#10;14.4    <ins>multiplied by the accrued liability funding ratio of active members as derived from the </ins>&#10;14.5    <ins>most recent actuarial valuation prepared by the actuary retained under Minnesota Statutes, </ins>&#10;14.6    <ins>section 356.214. The transfer of assets must be made within 30 days after the employee </ins>&#10;14.7    <ins>elects to transfer the coverage to the correctional state employees retirement plan.</ins>&#10;14.8    <ins>(b) The Department of Corrections shall pay the cost of the actuarial work performed </ins>&#10;14.9    <ins>by the actuary retained under Minnesota Statutes, section 356.214, under paragraph (a) </ins>&#10;14.10   <ins>upon receipt of a billing from the executive director of the Public Employees Retirement </ins>&#10;14.11   <ins>Association.</ins>&#10;14.12       <ins>Subd. 4.</ins> <ins><b>Effect of the asset transfer.</b></ins> <ins>Upon the transfer of assets in subdivision </ins>&#10;14.13   <ins>3, service credit in the general state employees retirement plan of the Minnesota State </ins>&#10;14.14   <ins>Retirement System is forfeited and may not be reinstated. The service credit and </ins>&#10;14.15   <ins>transferred assets must be credited to the correctional state employees retirement plan.</ins>&#10;&#10;<a id="go.2.13.0"></a>14.16       Sec. 13. <ins><b>SERVICE CREDIT TRANSFER TO CORRECTIONAL PLAN.</b></ins>&#10;14.17       <ins>Subdivision 1.</ins> <ins><b>Authorization.</b></ins> <ins>If the review of the corrections program director </ins>&#10;14.18   <ins>position of the eligible individual under Minnesota Statutes 2005 Supplement, section </ins>&#10;14.19   <ins>352.91, subdivision 4a, results in the inclusion of the corrections program director position </ins>&#10;14.20   <ins>in the correctional state employees retirement plan of the Minnesota State Retirement </ins>&#10;14.21   <ins>System by legislative enactment during the 2006 or 2007 legislative sessions, an eligible </ins>&#10;14.22   <ins>individual specified in subdivision 2 is authorized to have service credit in the Minnesota </ins>&#10;14.23   <ins>State Retirement System general state employees retirement plan for employment as </ins>&#10;14.24   <ins>a corrections program director from June 17, 1995, to June 5, 2001, transferred from </ins>&#10;14.25   <ins>the Minnesota State Retirement System general state employees retirement plan to the </ins>&#10;14.26   <ins>Minnesota State Retirement System correctional state employees retirement plan, if all </ins>&#10;14.27   <ins>conditions required by this section are met.</ins>&#10;14.28       <ins>Subd. 2.</ins> <ins><b>Eligibility.</b></ins> <ins>An eligible individual is an individual who:</ins>&#10;14.29   <ins>(1) was born on November 14, 1956;</ins>&#10;14.30   <ins>(2) is currently employed as a corrections lieutenant;</ins>&#10;14.31   <ins>(3) was covered by the Minnesota State Retirement System correctional state </ins>&#10;14.32   <ins>employees retirement plan for service provided from November 1, 1980, to June 16, 1995;</ins>&#10;14.33   <ins>(4) was covered by the Minnesota State Retirement System general state employees </ins>&#10;14.34   <ins>retirement plan for employment as a corrections program director from June 17, 1995, to </ins>&#10;14.35   <ins>June 5, 2001; and</ins>&#10;15.1    <ins>(5) is covered by the Minnesota State Retirement System correctional state </ins>&#10;15.2    <ins>employees retirement plan for employment as a corrections lieutenant beginning June </ins>&#10;15.3    <ins>6, 2001.</ins>&#10;15.4        <ins>Subd. 3.</ins> <ins><b>Employee equivalent contribution.</b></ins> <ins>To receive the transfer of service </ins>&#10;15.5    <ins>credit specified in subdivision 1, the individual must pay to the executive director of the </ins>&#10;15.6    <ins>Minnesota State Retirement System the difference between the employee contribution rate </ins>&#10;15.7    <ins>for the general state employees retirement plan and the employee contribution rate for </ins>&#10;15.8    <ins>the correctional state employees retirement plan in effect during the period eligible for </ins>&#10;15.9    <ins>transfer applied to the eligible individual's salary at the time each additional contribution </ins>&#10;15.10   <ins>would have been deducted from pay if coverage had been provided by the correctional </ins>&#10;15.11   <ins>state employees retirement plan. These amounts shall be paid in a lump sum by September </ins>&#10;15.12   <ins>1, 2005, or prior to termination of service, whichever is earlier, plus 8.5 percent annual </ins>&#10;15.13   <ins>compound interest from the applicable payroll deduction date until paid.</ins>&#10;15.14       <ins>Subd. 4.</ins> <ins><b>Employer equivalent.</b></ins> <ins>The eligible individual shall also pay to the </ins>&#10;15.15   <ins>executive director of the Minnesota State Retirement System the difference between </ins>&#10;15.16   <ins>the employer contribution rate for the general state employees retirement plan and the </ins>&#10;15.17   <ins>employer contribution rate for the correctional state employees retirement plan in effect </ins>&#10;15.18   <ins>during the period eligible for transfer applied to the eligible individual's salary at the </ins>&#10;15.19   <ins>time each additional contribution would have been deducted from pay if coverage had </ins>&#10;15.20   <ins>been provided by the correctional state employees retirement plan. These amounts shall </ins>&#10;15.21   <ins>be paid in a lump sum at the same time as the amount under subdivision 3, with interest </ins>&#10;15.22   <ins>as specified in that subdivision.</ins>&#10;15.23       <ins>Subd. 5.</ins> <ins><b>Transfer of assets.</b></ins> <ins>If payments under subdivisions 3 and 4 are made, </ins>&#10;15.24   <ins>assets must be transferred from the general state employees retirement plan fund to the </ins>&#10;15.25   <ins>correctional state employees retirement plan fund in an amount equal to the present value </ins>&#10;15.26   <ins>of benefits earned by the eligible individual under the general state employees retirement </ins>&#10;15.27   <ins>plan, as determined by the actuary retained under section 356.214 in accordance with </ins>&#10;15.28   <ins>Minnesota Statutes, section 356.215. The transfer of assets must be made within 45 days </ins>&#10;15.29   <ins>after the receipt of payments under subdivisions 3 and 4.</ins>&#10;15.30       <ins>Subd. 6.</ins> <ins><b>Effect of the asset transfer.</b></ins> <ins>Upon transfer of assets in subdivision 5, </ins>&#10;15.31   <ins>service credit in the general state employees retirement plan of the Minnesota State </ins>&#10;15.32   <ins>Retirement System is forfeited and may not be reinstated. The service credit and </ins>&#10;15.33   <ins>transferred assets must be credited to the correctional state employees retirement plan.</ins>&#10;15.34       <ins>Subd. 7.</ins> <ins><b>Payment of actuarial calculation costs.</b></ins> <ins>The expense for the calculations </ins>&#10;15.35   <ins>by the actuary under subdivision 5 must be paid by the Department of Corrections.</ins>&#10;&#10;<a id="go.2.14.0"></a>16.1        Sec. 14. <ins><b>EFFECTIVE DATE.</b></ins>&#10;16.2    <ins>(a) Sections 1 to 8 and 12, are effective the first day of the first payroll period next </ins>&#10;16.3    <ins>following the date of enactment.</ins>&#10;16.4    <ins>(b) Sections 9, 10, and 11 are effective the day following final enactment.</ins>&#10;16.5    <ins>(c) Section 13 is effective July 1, 2006, applies retroactively to permit a transfer </ins>&#10;16.6    <ins>by an eligible individual of service credit before January 1, 2008, even if the eligible </ins>&#10;16.7    <ins>individual has terminated active state employment before July 1, 2007, and, if the eligible </ins>&#10;16.8    <ins>individual is in receipt of a retirement annuity from the correctional state employees </ins>&#10;16.9    <ins>retirement plan of the Minnesota State Retirement System on or before July 1, 2007, </ins>&#10;16.10   <ins>allows the eligible individual to have the retirement annuity recalculated on the basis </ins>&#10;16.11   <ins>of any transferred service credit.</ins>&#10;16.12   <ins>(d) The addition of the reference to "correctional industry" in section 3 is a </ins>&#10;16.13   <ins>clarification of the existing provision and is not intended to be the basis for the addition of </ins>&#10;16.14   <ins>any employment position to plan coverage beyond the employment positions included </ins>&#10;16.15   <ins>on January 15, 2006, unless there is a change in the duties of an employment position </ins>&#10;16.16   <ins>connected with correctional industries that increases the regularly occurring direct inmate </ins>&#10;16.17   <ins>contact of the position to in excess of 75 percent and the inclusion of the position as </ins>&#10;16.18   <ins>"correctional industry personnel" is approved by the commissioner of employee relations.</ins>&#10;&#10;<a id="go.3.0.0"></a>16.19                                          <b>ARTICLE 3</b>&#10;16.20                          <b>RETIREMENT PLAN ADMINISTRATIVE PROVISIONS</b>&#10;&#10;<a id="go.3.1.0"></a>16.21       Section 1. Minnesota Statutes 2004, section 136F.45, subdivision 1a, is amended to &#10;16.22   read:&#10;16.23       Subd. 1a. <b>Subsequent vendor contracts.</b> (a) The board may limit the number &#10;16.24   of vendors under subdivision 1.&#10;16.25   (b) In addition to any other tax-sheltered annuity program investment options, the &#10;16.26   board may offer as an investment option the Minnesota supplemental investment fund &#10;16.27   administered by the State Board of Investment under section  11A.17. &#10;16.28   (c) <del>For the tax-sheltered annuity program vendor contracts executed after July 1, </del>&#10;16.29   <del>2000,</del> The board shall actively solicit participation of and shall include as vendors lower &#10;16.30   expense and "no-load" mutual funds or equivalent investment products as those terms are &#10;16.31   defined by the federal Securities and Exchange Commission. <del>To the extent possible, in </del>&#10;16.32   <del>addition to a range of insurance annuity contract providers and other mutual fund provider </del>&#10;16.33   <del>arrangements, the board must assure that no less than five insurance annuity providers </del>&#10;16.34   <del>and no less than one nor more than three lower expense and "no-load" mutual funds or </del>&#10;16.35   <del>equivalent investment products will be made available for direct-access by employee </del>&#10;17.1    <del>participants.</del> To the extent that offering a lower expense "no-load" product increases the &#10;17.2    total necessary and reasonable expenses of the program and if the board is unable to &#10;17.3    negotiate a rebate of fees from the mutual fund or equivalent investment product providers, &#10;17.4    the board may charge the participants utilizing the lower expense "no-load" mutual fund &#10;17.5    products a fee to cover those expenses. The participant fee may not exceed one percent &#10;17.6    of the participant's annual contributions or $20 per participant per year, whichever is &#10;17.7    greater. Any excess fee revenue generated under this subdivision must be reimbursed to &#10;17.8    participant accounts in the manner provided in subdivision 3a.&#10;&#10;<a id="go.3.2.0"></a>17.9        Sec. 2. Minnesota Statutes 2004, section 352.113, subdivision 7a, is amended to read:&#10;17.10       Subd. 7a. <b>Temporary reemployment benefit reduction waiver.</b> <ins>(a) </ins>A reduction in &#10;17.11   benefits under subdivision 7, or a termination of benefits due to the disabled employee &#10;17.12   resuming a gainful occupation from which earnings are equal to or more than the &#10;17.13   employee's salary at the date of disability or the salary currently paid for similar positions &#10;17.14   does not apply until six months after the individual returns to a gainful occupation.&#10;17.15   <ins>(b) No deductions for the retirement fund may be taken from the salary of a disabled </ins>&#10;17.16   <ins>person who is attempting to return to work under this provision unless the member waives </ins>&#10;17.17   <ins>further disability benefits.</ins>&#10;17.18   <ins>(c) A member may return to employment and continue disability benefit payments </ins>&#10;17.19   <ins>under this subdivision only once while receiving disability benefits from a plan </ins>&#10;17.20   <ins>administered by the Minnesota State Retirement System.</ins>&#10;&#10;<a id="go.3.3.0"></a>17.21       Sec. 3. Minnesota Statutes 2004, section 352.116, subdivision 3a, is amended to read:&#10;17.22       Subd. 3a. <b>Bounce-back annuity.</b> (a) If a retired employee or disabilitant selects &#10;17.23   a joint and survivor annuity option under subdivision 3<ins> after June 30, 1989</ins>, the retired &#10;17.24   employee or disabilitant must receive a normal single-life annuity if the designated &#10;17.25   optional annuity beneficiary dies before the retired employee or disabilitant. Under this &#10;17.26   option, no reduction may be made in the annuity to provide for restoration of the normal &#10;17.27   single-life annuity in the event of the death of the designated optional annuity beneficiary.&#10;17.28   (b) <del>A retired employee or disabilitant who selected an optional joint and survivor </del>&#10;17.29   <del>annuity before July 1, 1989, but did not choose an option that provides that the normal </del>&#10;17.30   <del>single-life annuity is payable to the retired employee or the disabilitant if the designated </del>&#10;17.31   <del>optional annuity beneficiary dies first, is eligible for restoration of the normal single-life </del>&#10;17.32   <del>annuity if the designated optional annuity beneficiary dies first, without further actuarial </del>&#10;17.33   <del>reduction of the person's annuity. A retired employee or disabilitant who selected an </del>&#10;17.34   <del>optional joint and survivor annuity, but whose designated optional annuity beneficiary died </del>&#10;18.1    <del>before July 1, 1989, shall receive a normal single-life annuity after that date, but shall not </del>&#10;18.2    <del>receive retroactive payments for periods before that date</del><ins> The annuity adjustment specified </ins>&#10;18.3    <ins>in paragraph (a) also applies to joint and survivor annuity options under subdivision </ins>&#10;18.4    <ins>3 elected prior to July 1, 1989. The annuity adjustment under this paragraph occurs on </ins>&#10;18.5    <ins>July 1, 1989, or on the first day of the first month following the death of the designated </ins>&#10;18.6    <ins>optional annuity beneficiary, whichever is later. This paragraph should not be interpreted </ins>&#10;18.7    <ins>as authorizing retroactive payments</ins>.&#10;18.8    <del>(c) A retired employee or disabilitant who took a further actuarial reduction to elect </del>&#10;18.9    <del>an optional joint and survivor annuity that provides that the normal annuity is payable </del>&#10;18.10   <del>to the retired employee or disabilitant if the designated optional beneficiary died before </del>&#10;18.11   <del>July 1, 1989, shall have the annuity increased as of July 1, 1989, to the amount the person </del>&#10;18.12   <del>would have received if, at the time of retirement or disability, the person had selected only </del>&#10;18.13   <del>optional survivor coverage that would not have provided for restoration of the normal </del>&#10;18.14   <del>annuity upon the death of the designated optional annuity beneficiary. Any annuity or </del>&#10;18.15   <del>benefit increase under this paragraph is effective only for payments made after June 30, </del>&#10;18.16   <del>1989, and is not retroactive for payments made before July 1, 1989.</del>&#10;&#10;<a id="go.3.4.0"></a>18.17       Sec. 4. Minnesota Statutes 2004, section 352.116, subdivision 3b, is amended to read:&#10;18.18       Subd. 3b. <b>Bounce-back annuity.</b> (a) The board of directors must provide a joint &#10;18.19   and survivor annuity option to members of the correctional employees and State Patrol &#10;18.20   retirement funds. Under this option, <ins>if </ins>a former member or disabilitant <ins>selects a joint </ins>&#10;18.21   <ins>and survivor annuity option after June 30, 1989, the former member or disabilitant </ins>must &#10;18.22   receive a normal single life annuity if the designated optional annuity beneficiary dies &#10;18.23   before the former member or disabilitant. Under this option, no reduction may be made &#10;18.24   in the person's annuity to provide for restoration of the normal single life annuity in the &#10;18.25   event of the death of the designated optional annuity beneficiary.&#10;18.26   (b) <del>A former member or disabilitant of the correctional or State Patrol fund who </del>&#10;18.27   <del>selected an optional joint and survivor annuity before July 1, 1989, but did not choose an </del>&#10;18.28   <del>option that provides that the normal single life annuity is payable to the former member </del>&#10;18.29   <del>or the disabilitant if the designated optional annuity beneficiary dies first, is eligible for </del>&#10;18.30   <del>restoration of the normal single life annuity if the designated optional annuity beneficiary </del>&#10;18.31   <del>dies first, without further actuarial reduction of the person's annuity. A former member </del>&#10;18.32   <del>or disabilitant who selected an optional joint and survivor annuity, but whose designated </del>&#10;18.33   <del>optional annuity beneficiary died before July 1, 1989, shall receive a normal single life </del>&#10;18.34   <del>annuity after that date, but shall not receive retroactive payments for periods before that </del>&#10;18.35   <del>date</del><ins> The annuity adjustment specified in paragraph (a) also applies to joint and survivor </ins>&#10;19.1    <ins>annuity options elected prior to July 1, 1989. The annuity adjustment under this paragraph </ins>&#10;19.2    <ins>occurs on July 1, 1989, or on the first day of the first month following the death of the </ins>&#10;19.3    <ins>designated optional annuity beneficiary, whichever is later. This paragraph should not be </ins>&#10;19.4    <ins>interpreted as authorizing retroactive payments</ins>.&#10;19.5    <del>(c) A former member or disabilitant who took a further actuarial reduction to elect </del>&#10;19.6    <del>an optional joint and survivor annuity that provides that the normal annuity is payable to </del>&#10;19.7    <del>the former member or disabilitant if the designated optional beneficiary died before July </del>&#10;19.8    <del>1, 1989, shall have their annuity increased as of July 1, 1989, to the amount the person </del>&#10;19.9    <del>would have received if, at the time of retirement or disability, the person had selected only </del>&#10;19.10   <del>optional survivor coverage that would not have provided for restoration of the normal </del>&#10;19.11   <del>annuity upon the death of the designated optional annuity beneficiary. Any annuity or </del>&#10;19.12   <del>benefit increase under this paragraph is effective only for payments made after June 30, </del>&#10;19.13   <del>1989, and is not retroactive for payments made before July 1, 1989.</del>&#10;&#10;<a id="go.3.5.0"></a>19.14       Sec. 5. Minnesota Statutes 2004, section 353.01, subdivision 2a, is amended to read:&#10;19.15       Subd. 2a. <b>Included employees.</b> (a) Public employees whose salary from one &#10;19.16   governmental subdivision exceeds $425 in any month shall participate as members of the &#10;19.17   association. If the salary is less than $425 in a subsequent month, the employee retains &#10;19.18   membership eligibility. Eligible public employees shall participate as members of the &#10;19.19   association with retirement coverage by the public employees retirement plan or the public &#10;19.20   employees police and fire retirement plan under this chapter, or the local government &#10;19.21   correctional employees retirement plan under chapter 353E, whichever applies, as a &#10;19.22   condition of their employment on the first day of employment unless they:&#10;19.23   (1) are specifically excluded under subdivision 2b;&#10;19.24   (2) do not exercise their option to elect retirement coverage in the association as &#10;19.25   provided in subdivision 2d, paragraph (a); or&#10;19.26   (3) are employees of the governmental subdivisions listed in subdivision 2d, &#10;19.27   paragraph (b), where the governmental subdivision has not elected to participate as a &#10;19.28   governmental subdivision covered by the association.&#10;19.29   (b) A public employee who was a member of the association on June 30, 2002, &#10;19.30   based on employment that qualified for membership coverage by the public employees &#10;19.31   retirement plan or the public employees police and fire plan under this chapter, or the local &#10;19.32   government correctional employees retirement plan under chapter 353E as of June 30, &#10;19.33   2002, retains that membership until the employee terminates public employment under &#10;19.34   subdivision 11a or terminates membership under subdivision 11b.&#10;20.1    <ins>(c) Public employees under paragraph (a) includes physicians under section </ins>&#10;20.2    <ins>353D.01, subdivision 2, who do not elect public employees defined contribution plan </ins>&#10;20.3    <ins>coverage under section 353D.02, subdivision 2.</ins>&#10;&#10;<a id="go.3.6.0"></a>20.4        Sec. 6. Minnesota Statutes 2005 Supplement, section 353.01, subdivision 2d, is &#10;20.5    amended to read:&#10;20.6        Subd. 2d. <b>Optional membership.</b> (a) Membership in the association is optional &#10;20.7    by action of the individual employee for the following public employees who meet the &#10;20.8    conditions set forth in subdivision 2a:&#10;20.9    (1) members of the coordinated plan who are also employees of labor organizations &#10;20.10   as defined in section 353.017, subdivision 1, for their employment by the labor &#10;20.11   organization only if they elect to have membership under section 353.017, subdivision 2;&#10;20.12   (2) persons who are elected or persons who are appointed to elected positions other &#10;20.13   than local governing body elected positions who elect to participate by filing a written &#10;20.14   election for membership;&#10;20.15   (3) members of the association who are appointed by the governor to be a state &#10;20.16   department head and who elect not to be covered by the general state employees retirement &#10;20.17   plan of the Minnesota State Retirement System under section 352.021;&#10;20.18   (4) city managers as defined in section 353.028, subdivision 1, who do not elect to be &#10;20.19   excluded from membership in the association under section 353.028, subdivision 2; and&#10;20.20   (5) employees of the Port Authority of the city of St. Paul <del>who were at least age 45</del> &#10;20.21   on January 1, 2003, <ins>who were at least age 45 on that date, </ins>and who elect to participate by &#10;20.22   filing a written election for membership.&#10;20.23   (b) Membership in the association is optional by action of the governmental &#10;20.24   subdivision for the employees of the following governmental subdivisions under the &#10;20.25   conditions specified:&#10;20.26   (1) the Minnesota Association of Townships if the board of the association, at its &#10;20.27   option, certifies to the executive director that its employees are to be included for purposes &#10;20.28   of retirement coverage, in which case the status of the association as a participating &#10;20.29   employer is permanent;&#10;20.30   (2) a county historical society if the county in which the historical society is located, &#10;20.31   at its option, certifies to the executive director that the employees of the historical society &#10;20.32   are to be county employees for purposes of retirement coverage under this chapter. The &#10;20.33   status as a county employee must be accorded to all similarly situated county historical &#10;20.34   society employees and, once established, must continue as long as a person is an employee &#10;20.35   of the county historical society; and&#10;21.1    (3) Hennepin Healthcare System, Inc., a public corporation, with respect to &#10;21.2    employees other than paramedics, emergency medical technicians, and protection officers, &#10;21.3    if the corporate board establishes alternative retirement plans for certain classes of &#10;21.4    employees of the corporation and certifies the employees to be excluded from future &#10;21.5    retirement coverage.&#10;21.6    (c) For employees who are covered by paragraph (a), clause (1), (2), or (3), or &#10;21.7    covered by paragraph (b), clause (1) or (2), if the necessary membership election is &#10;21.8    not made, the employee is excluded from retirement coverage under this chapter. For &#10;21.9    employees who are covered by paragraph (a), clause (4), if the necessary election is not &#10;21.10   made, the employee must become a member and have retirement coverage under this &#10;21.11   chapter. For employees specified in paragraph (b), clause (3), membership continues until &#10;21.12   the exclusion option is exercised for the designated class of employee. The option to &#10;21.13   become a member, once exercised under this subdivision, may not be withdrawn until &#10;21.14   termination of public service as defined under subdivision 11a.&#10;&#10;<a id="go.3.7.0"></a>21.15       Sec. 7. Minnesota Statutes 2004, section 353.01, subdivision 11a, is amended to read:&#10;21.16       Subd. 11a. <b>Termination of public service.</b> (a) "Termination of public service" &#10;21.17   occurs when a member resigns or is dismissed from public service by the employing &#10;21.18   governmental subdivision <del>or when a position ends and the member who held the position </del>&#10;21.19   <del>is not considered by the governmental subdivision to be on a temporary layoff,</del> and &#10;21.20   the employee does not, within 30 days of the date the employment relationship ended, &#10;21.21   return to an employment position in the same governmental subdivision<ins> or when the </ins>&#10;21.22   <ins>employer-employee relationship is severed due to the expiration of a layoff under </ins>&#10;21.23   <ins>subdivision 12 or 12c</ins>.&#10;21.24   (b) The termination of public service must be recorded in the association records &#10;21.25   upon receipt of an appropriate notice from the governmental subdivision.&#10;&#10;<a id="go.3.8.0"></a>21.26       Sec. 8. Minnesota Statutes 2004, section 353.01, subdivision 11b, is amended to read:&#10;21.27       Subd. 11b. <b>Termination of membership.</b> (a) "Termination of membership" means &#10;21.28   the conclusion of membership in the association <ins>for a person who has not terminated </ins>&#10;21.29   <ins>public service under subdivision 11a </ins>and occurs:&#10;21.30   (1) <del>upon termination of public service under subdivision 11a;</del>&#10;21.31   <del>(2) when a member does not return to work within 30 days of the expiration of </del>&#10;21.32   <del>an authorized temporary layoff under subdivision 12 or an authorized leave of absence </del>&#10;21.33   <del>under subdivision 31 as evidenced by the appropriate record filed by the governmental </del>&#10;21.34   <del>subdivision; or</del>&#10;22.1    <del>(3)</del> when a person files a written election <ins>with the association </ins>to discontinue &#10;22.2    employee deductions under section  353.27, subdivision 7, paragraph (a), clause (1)<ins>;</ins>&#10;22.3    <ins>(2) when a city manager files a written election with the association to discontinue </ins>&#10;22.4    <ins>employee deductions under section 353.028, subdivision 2; or</ins>&#10;22.5    <ins>(3) when a member transfers to a temporary position and becomes excluded from </ins>&#10;22.6    <ins>membership under subdivision 2b, clause (4)</ins>. &#10;22.7    (b) The termination of membership <ins>under clause (3) </ins>must be reported to the &#10;22.8    association by the governmental subdivision.&#10;22.9    <del>(c) If the employee subsequently returns to a position in the same governmental </del>&#10;22.10   <del>subdivision, the employee shall not again be required to earn a salary in excess of $425 per </del>&#10;22.11   <del>month to qualify for membership, unless the employee has taken a refund of accumulated </del>&#10;22.12   <del>employee deduction plus interest under section  </del><del>353.34, subdivision 1</del><del>. </del>&#10;&#10;<a id="go.3.9.0"></a>22.13       Sec. 9. Minnesota Statutes 2004, section 353.01, subdivision 12, is amended to read:&#10;22.14       Subd. 12. <b>Authorized temporary </b><ins><b>or seasonal </b></ins><b>layoff.</b> "Authorized temporary &#10;22.15   <ins>or seasonal </ins>layoff," including seasonal leave of absence, means a suspension of public &#10;22.16   service <ins>for a limited period during a year </ins>authorized by the employing governmental &#10;22.17   subdivision for a <del>period not exceeding three months in any calendar year, as evidenced by </del>&#10;22.18   <del>appropriate record of the employer and promptly transmitted to the association</del><ins> member </ins>&#10;22.19   <ins>who is expected to return to the same position at the end of the layoff period and for which </ins>&#10;22.20   <ins>there has been no termination of public service under subdivision 11a</ins>.&#10;&#10;<a id="go.3.10.0"></a>22.21       Sec. 10. Minnesota Statutes 2004, section 353.01, is amended by adding a subdivision &#10;22.22   to read:&#10;22.23       <ins>Subd. 12c.</ins> <ins><b>Indefinite layoff.</b></ins> <ins>"Indefinite layoff" occurs when a member is placed on </ins>&#10;22.24   <ins>a layoff that is not a temporary or seasonal layoff under subdivision 12, for which no date </ins>&#10;22.25   <ins>has been specified by the employing governmental subdivision for the employee's return </ins>&#10;22.26   <ins>to work, and there has been no termination of public service under subdivision 11a.</ins>&#10;&#10;<a id="go.3.11.0"></a>22.27       Sec. 11. Minnesota Statutes 2004, section 353.01, subdivision 16, is amended to read:&#10;22.28       Subd. 16. <b>Allowable service; limits and computation.</b> (a) "Allowable service" &#10;22.29   means:&#10;22.30   (1) service during years of actual membership in the course of which employee &#10;22.31   contributions were made, periods covered by payments in lieu of salary deductions under &#10;22.32   section  353.35; &#10;23.1    (2) service in years during which the public employee was not a member but for &#10;23.2    which the member later elected, while a member, to obtain credit by making payments to &#10;23.3    the fund as permitted by any law then in effect;&#10;23.4    (3) a period of authorized leave of absence with pay from which deductions for &#10;23.5    employee contributions are made, deposited, and credited to the fund;&#10;23.6    (4) a period of authorized personal, parental, or medical leave of absence without &#10;23.7    pay, including a leave of absence covered under the federal Family Medical Leave Act, &#10;23.8    that does not exceed one year, and during or for which a member obtained service credit &#10;23.9    for each month in the leave period by payments to the fund made in place of salary &#10;23.10   deductions. The payments must be made in an amount or amounts based on the member's &#10;23.11   average salary on which deductions were paid for the last six months of public service, or &#10;23.12   for that portion of the last six months while the member was in public service, to apply to &#10;23.13   the period in either case that immediately precedes the commencement of the leave of &#10;23.14   absence. If the employee elects to pay the employee contributions for the period of any &#10;23.15   authorized personal, parental, or medical leave of absence without pay, or for any portion &#10;23.16   of the leave, the employee shall also, as a condition to the exercise of the election, pay &#10;23.17   to the fund an amount equivalent to the required employer and the additional employer &#10;23.18   contributions, if any, for the employee. The payment must be made within one year from &#10;23.19   the expiration of the leave of absence or within 20 days after termination of public service &#10;23.20   under subdivision 11a, whichever is earlier. The employer, by appropriate action of its &#10;23.21   governing body which is made a part of its official records and which is adopted before the &#10;23.22   date of the first payment of the employee contribution, may certify to the association in &#10;23.23   writing its commitment to pay the employer and additional employer contributions from &#10;23.24   the proceeds of a tax levy made under section  353.28. Payments under this paragraph must &#10;23.25   include interest at an annual rate of 8.5 percent compounded annually from the date of the &#10;23.26   termination of the leave of absence to the date payment is made. An employee shall return &#10;23.27   to public service and render a minimum of three months of allowable service in order to &#10;23.28   be eligible to pay employee and employer contributions for a subsequent authorized leave &#10;23.29   of absence without pay. Upon payment, the employee must be granted allowable service &#10;23.30   credit for the purchased period; &#10;23.31   (5) a periodic, repetitive leave that is offered to all employees of a governmental &#10;23.32   subdivision. The leave program may not exceed 208 hours per annual normal work &#10;23.33   cycle as certified to the association by the employer. A participating member obtains &#10;23.34   service credit by making employee contributions in an amount or amounts based on the &#10;23.35   member's average salary that would have been paid if the leave had not been taken. The &#10;23.36   employer shall pay the employer and additional employer contributions on behalf of the &#10;24.1    participating member. The employee and the employer are responsible to pay interest on &#10;24.2    their respective shares at the rate of 8.5 percent a year, compounded annually, from the &#10;24.3    end of the normal cycle until full payment is made. An employer shall also make the &#10;24.4    employer and additional employer contributions, plus 8.5 percent interest, compounded &#10;24.5    annually, on behalf of an employee who makes employee contributions but terminates &#10;24.6    public service. The employee contributions must be made within one year after the end of &#10;24.7    the annual normal working cycle or within 20 days after termination of public service, &#10;24.8    whichever is sooner. The association shall prescribe the manner and forms to be used by a &#10;24.9    governmental subdivision in administering a periodic, repetitive leave. Upon payment, the &#10;24.10   member must be granted allowable service credit for the purchased period;&#10;24.11   (6) an authorized temporary <ins>or seasonal </ins>layoff under subdivision 12, limited to three &#10;24.12   months allowable service per authorized temporary <ins>or seasonal </ins>layoff in one calendar year. &#10;24.13   An employee who has received the maximum service credit allowed for an authorized &#10;24.14   temporary <ins>or seasonal </ins>layoff must return to public service and must obtain a minimum of &#10;24.15   three months of allowable service subsequent to the layoff in order to receive allowable &#10;24.16   service for a subsequent authorized temporary <ins>or seasonal </ins>layoff; or&#10;24.17   (7) a period during which a member is absent from employment by a governmental &#10;24.18   subdivision by reason of service in the uniformed services, as defined in United States &#10;24.19   Code, title 38, section 4303(13), if the member returns to public service upon discharge &#10;24.20   from service in the uniformed service within the time frames required under United &#10;24.21   States Code, title 38, section 4312(e), provided that the member did not separate from &#10;24.22   uniformed service with a dishonorable or bad conduct discharge or under other than &#10;24.23   honorable conditions. The service is credited if the member pays into the fund equivalent &#10;24.24   employee contributions based upon the contribution rate or rates in effect at the time &#10;24.25   that the uniformed service was performed multiplied by the full and fractional years &#10;24.26   being purchased and applied to the annual salary rate. The annual salary rate is the &#10;24.27   average annual salary during the purchase period that the member would have received &#10;24.28   if the member had continued to be employed in covered employment rather than to &#10;24.29   provide uniformed service, or, if the determination of that rate is not reasonably certain, &#10;24.30   the annual salary rate is the member's average salary rate during the 12-month period of &#10;24.31   covered employment rendered immediately preceding the period of the uniformed service. &#10;24.32   Payment of the member equivalent contributions must be made during a period which &#10;24.33   begins with the date on which the individual returns to public employment and that is three &#10;24.34   times the length of the military leave period, or within five years of the date of discharge &#10;24.35   from the military service, whichever is less. If the determined payment period is less than &#10;24.36   one year, the contributions required under this clause to receive service credit may be &#10;25.1    made within one year of the discharge date. Payment may not be accepted following 20 &#10;25.2    days after termination of public service under subdivision 11a. If the member equivalent &#10;25.3    contributions provided for in this clause are not paid in full, the member's allowable &#10;25.4    service credit must be prorated by multiplying the full and fractional number of years of &#10;25.5    uniformed service eligible for purchase by the ratio obtained by dividing the total member &#10;25.6    contributions received by the total member contributions otherwise required under this &#10;25.7    clause. The equivalent employer contribution, and, if applicable, the equivalent additional &#10;25.8    employer contribution must be paid by the governmental subdivision employing the &#10;25.9    member if the member makes the equivalent employee contributions. The employer &#10;25.10   payments must be made from funds available to the employing unit, using the employer &#10;25.11   and additional employer contribution rate or rates in effect at the time that the uniformed &#10;25.12   service was performed, applied to the same annual salary rate or rates used to compute the &#10;25.13   equivalent member contribution. The governmental subdivision involved may appropriate &#10;25.14   money for those payments. The amount of service credit obtainable under this section may &#10;25.15   not exceed five years unless a longer purchase period is required under United States Code, &#10;25.16   title 38, section 4312. The employing unit shall pay interest on all equivalent member and &#10;25.17   employer contribution amounts payable under this clause. Interest must be computed at &#10;25.18   a rate of 8.5 percent compounded annually from the end of each fiscal year of the leave &#10;25.19   or the break in service to the end of the month in which the payment is received. Upon &#10;25.20   payment, the employee must be granted allowable service credit for the purchased period.&#10;25.21   (b) For calculating benefits under sections  353.30,  353.31,  353.32, and  353.33 for &#10;25.22   state officers and employees displaced by the Community Corrections Act, chapter 401, &#10;25.23   and transferred into county service under section  401.04, "allowable service" means the &#10;25.24   combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and &#10;25.25   section  352.01, subdivision 11. &#10;25.26   (c) For a public employee who has prior service covered by a local police or &#10;25.27   firefighters relief association that has consolidated with the Public Employees Retirement &#10;25.28   Association or to which section  353.665 applies, and who has elected the type of benefit &#10;25.29   coverage provided by the public employees police and fire fund either under section  &#10;25.30   353A.08 following the consolidation or under section  353.665, subdivision 4, "applicable &#10;25.31   service" is a period of service credited by the local police or firefighters relief association &#10;25.32   as of the effective date of the consolidation based on law and on bylaw provisions &#10;25.33   governing the relief association on the date of the initiation of the consolidation procedure. &#10;25.34   (d) No member may receive more than 12 months of allowable service credit in a &#10;25.35   year either for vesting purposes or for benefit calculation purposes.&#10;25.36   (e) MS 2002 (Expired)&#10;&#10;<a id="go.3.12.0"></a>26.1        Sec. 12. Minnesota Statutes 2005 Supplement, section 353.028, subdivision 3, is &#10;26.2    amended to read:&#10;26.3        Subd. 3. <b>Deferred compensation; city contribution.</b> <ins>(a) </ins>If an election of exclusion &#10;26.4    <ins>under subdivision 2 </ins>is made, and if the city manager and the governing body of the city &#10;26.5    additionally agree in writing that the additional compensation is to be deferred and is to &#10;26.6    be contributed on behalf of the city manager to a deferred compensation program which &#10;26.7    meets the requirements of section 457 of the Internal Revenue Code of 1986, as amended, &#10;26.8    the governing body may compensate the city manager, in addition to the salary allowed &#10;26.9    under any limitation imposed on salaries by law or charter, in an amount equal to the &#10;26.10   employer contribution which would be required by section 353.27, subdivision 3, if the &#10;26.11   city manager were a member of the general employees retirement plan.&#10;26.12   <ins>(b) Alternatively, if an election of exclusion under subdivision 2 is made, the city </ins>&#10;26.13   <ins>manager and the governing body of the city may agree in writing that the equivalent </ins>&#10;26.14   <ins>employer contribution to the contribution under section 353.27, subdivision 3, be </ins>&#10;26.15   <ins>contributed by the city to the defined contribution plan of the Public Employees </ins>&#10;26.16   <ins>Retirement Association under chapter 353D.</ins>&#10;&#10;<a id="go.3.13.0"></a>26.17       Sec. 13. Minnesota Statutes 2004, section 353.03, subdivision 1, is amended to read:&#10;26.18       Subdivision 1. <b>Management; composition; election.</b> <ins>(a) </ins>The management of the &#10;26.19   public employees retirement fund is vested in an 11-member board of trustees consisting &#10;26.20   of ten members and the state auditor<del> who</del><ins>. The state auditor</ins> may designate a deputy &#10;26.21   auditor with expertise in pension matters as the auditor's representative on the board. The &#10;26.22   governor shall appoint five trustees to four-year terms, one of whom shall be designated to &#10;26.23   represent school boards, one to represent cities, one to represent counties, one who is a &#10;26.24   retired annuitant, and one who is a public member knowledgeable in pension matters. The &#10;26.25   membership of the association, including recipients of retirement annuities and disability &#10;26.26   and survivor benefits, shall elect five trustees<ins> for terms of four years</ins>, one of whom must &#10;26.27   be a member of the police and fire fund and one of whom must be a former member &#10;26.28   who met the definition of public employee under section  353.01, subdivisions 2 and &#10;26.29   2a, for at least five years prior to terminating membership or a member who receives a &#10;26.30   disability benefit<del>, for terms of four years</del>. <ins>Terms expire on January 31 of the fourth year, </ins>&#10;26.31   <ins>and positions are vacant until newly elected members are seated. </ins>Except as provided in &#10;26.32   this subdivision, trustees elected by the membership of the association must be public &#10;26.33   employees and members of the association. &#10;26.34   <ins>(b) </ins>For seven days beginning October 1 of each year preceding a year in which &#10;26.35   an election is held, the association shall accept at its office filings in person or by mail &#10;27.1    of candidates for the board of trustees. A candidate shall submit at the time of filing a &#10;27.2    nominating petition signed by 25 or more members of the <del>fund</del><ins> association</ins>. No name may &#10;27.3    be withdrawn from nomination by the nominee after October 15. At the request of a &#10;27.4    candidate for an elected position on the board of trustees, the board shall mail a statement &#10;27.5    of up to 300 words prepared by the candidate to all persons eligible to vote in the election &#10;27.6    of the candidate. The board may adopt policies<ins>, subject to review and approval by the </ins>&#10;27.7    <ins>secretary of state under paragraph (e),</ins> to govern <ins>the </ins>form and length of these statements, &#10;27.8    timing of mailings, and deadlines for submitting materials to be mailed. <del>These policies </del>&#10;27.9    <del>must be approved by the secretary of state.</del> The secretary of state shall resolve disputes &#10;27.10   between the board and a candidate concerning application of these policies to a particular &#10;27.11   statement. &#10;27.12   <ins>(c) By January 10 of each year in which elections are to be held, the board shall </ins>&#10;27.13   <ins>distribute by mail to the members ballots listing the candidates. No member may vote for </ins>&#10;27.14   <ins>more than one candidate for each board position to be filled. A ballot indicating a vote for </ins>&#10;27.15   <ins>more than one person for any position is void. No special marking may be used on the </ins>&#10;27.16   <ins>ballot to indicate incumbents. Ballots mailed to the association must be postmarked no </ins>&#10;27.17   <ins>later than January 31. The ballot envelopes must be so designated and the ballots counted </ins>&#10;27.18   <ins>in a manner that ensures that each vote is secret.</ins>&#10;27.19   <ins>(d) </ins>A candidate who<del>:</del> &#10;27.20   <del>(1)</del> receives contributions or makes expenditures in excess of $100<del>;</del><ins>,</ins> or&#10;27.21   <del>(2)</del> has given implicit or explicit consent for any other person to receive contributions &#10;27.22   or make expenditures in excess of $100 for the purpose of bringing about the candidate's &#10;27.23   election, shall file a report with the campaign finance and public disclosure board &#10;27.24   disclosing the source and amount of all contributions to the candidate's campaign. The &#10;27.25   campaign finance and public disclosure board shall prescribe forms governing these &#10;27.26   disclosures. Expenditures and contributions have the meaning defined in section  10A.01. &#10;27.27   These terms do not include the mailing made by the association board on behalf of the &#10;27.28   candidate. A candidate shall file a report within 30 days from the day that the results of &#10;27.29   the election are announced. The Campaign Finance and Public Disclosure Board shall &#10;27.30   maintain these reports and make them available for public inspection in the same manner &#10;27.31   as the board maintains and makes available other reports filed with it. <del>By January 10 </del>&#10;27.32   <del>of each year in which elections are to be held the board shall distribute by mail to the </del>&#10;27.33   <del>members ballots listing the candidates. No member may vote for more than one candidate </del>&#10;27.34   <del>for each board position to be filled. A ballot indicating a vote for more than one person for </del>&#10;27.35   <del>any position is void. No special marking may be used on the ballot to indicate incumbents. </del>&#10;27.36   <del>The last day for mailing ballots to the fund is January 31. Terms expire on January 31 of </del>&#10;28.1    <del>the fourth year, and positions are vacant until newly elected members are qualified. The </del>&#10;28.2    <del>ballot envelopes must be so designed and the ballots counted in a manner that ensures </del>&#10;28.3    <del>that each vote is secret.</del> &#10;28.4    <ins>(e) </ins>The secretary of state shall <del>supervise</del><ins> review and approve the procedures defined </ins>&#10;28.5    <ins>by the board of trustees for conducting</ins> the elections<ins> specified in this subdivision, including </ins>&#10;28.6    <ins>board policies adopted under paragraph (b)</ins>. &#10;28.7    <ins>(f) </ins>The board of trustees and the executive director shall undertake their activities &#10;28.8    consistent with chapter 356A.&#10;&#10;<a id="go.3.14.0"></a>28.9        Sec. 14. Minnesota Statutes 2004, section 353.03, subdivision 1a, is amended to read:&#10;28.10       Subd. 1a. <b>Vacancy, how filled.</b> Any vacancy on the board caused by death, &#10;28.11   resignation, or removal of any trustee, or occurring because an elected trustee ceases to be &#10;28.12   a public employee and an active member of the association, must be filled by the board &#10;28.13   for trustees elected by members, and by the governor for other trustees, for the unexpired &#10;28.14   portion of the term in which the vacancy occurs.<ins> The board shall adopt policies and </ins>&#10;28.15   <ins>procedures governing how the vacancy of an elected trustee is to be filled.</ins>&#10;&#10;<a id="go.3.15.0"></a>28.16       Sec. 15. Minnesota Statutes 2004, section 353.03, is amended by adding a subdivision &#10;28.17   to read:&#10;28.18       <ins>Subd. 2b.</ins> <ins><b>Board legal authority.</b></ins> <ins>The board is authorized to take legal action when </ins>&#10;28.19   <ins>necessary to effectively administer the various plans administered by the association, </ins>&#10;28.20   <ins>consistent with applicable articles of incorporation, bylaws, law, and rules, as applicable, </ins>&#10;28.21   <ins>and including but not limited to the recapture of overpaid annuities, benefits, or refunds, </ins>&#10;28.22   <ins>and the correction of omitted or deficient deductions.</ins>&#10;&#10;<a id="go.3.16.0"></a>28.23       Sec. 16. Minnesota Statutes 2004, section 353.27, subdivision 7, is amended to read:&#10;28.24       Subd. 7. <b>Adjustment for erroneous receipts or disbursements.</b> (a) Except &#10;28.25   as provided in paragraph (b), erroneous employee deductions and erroneous employer &#10;28.26   contributions and additional employer contributions for a person, who otherwise does not &#10;28.27   qualify for membership under this chapter, are considered:&#10;28.28   (1) valid if the initial erroneous deduction began before January 1, 1990. Upon &#10;28.29   determination of the error by the association, the person may continue membership in the &#10;28.30   association while employed in the same position for which erroneous deductions were &#10;28.31   taken, or file a written election to terminate membership and apply for a refund <ins>upon </ins>&#10;28.32   <ins>termination of public service </ins>or defer an annuity under section   353.34; or &#10;29.1    (2) invalid, if the initial erroneous employee deduction began on or after January &#10;29.2    1, 1990. Upon determination of the error, the association shall <del>require the employer </del>&#10;29.3    <del>to discontinue erroneous employee deductions and erroneous employer contributions </del>&#10;29.4    <del>and additional employer contributions. Upon discontinuance, the association shall </del>&#10;29.5    refund all erroneous employee deductions <del>to the person, with interest, under section </del>&#10;29.6    <del>353.34, subdivision 2</del><del>,</del> and all erroneous employer contributions <del>and additional employer </del>&#10;29.7    <del>contributions to the employer</del><ins> as specified in paragraph (d)</ins>. No person may claim a right &#10;29.8    to continued or past membership in the association based on erroneous deductions which &#10;29.9    began on or after January 1, 1990. &#10;29.10   (b) Erroneous deductions taken from the salary of a person who did not qualify &#10;29.11   for membership in the association by virtue of concurrent employment before July 1, &#10;29.12   1978, which required contributions to another retirement fund or relief association &#10;29.13   established for the benefit of officers and employees of a governmental subdivision, are &#10;29.14   invalid. Upon discovery of the error, the association shall remove all <ins> invalid </ins>service and &#10;29.15   <ins>upon termination of public service, the association shall </ins>refund all erroneous employee &#10;29.16   deductions to the person, with interest under section   353.34, subdivision 2, and all &#10;29.17   erroneous employer contributions to the employer. This paragraph has both retroactive &#10;29.18   and prospective application. &#10;29.19   (c) Employer contributions and employee deductions taken in error from amounts &#10;29.20   which are not salary under section   353.01, subdivision 10, are invalid upon discovery by &#10;29.21   the association and <del>may</del><ins> must</ins> be refunded <del>at any time</del><ins> as specified in paragraph (d)</ins>. &#10;29.22   (d) <ins>Upon discovery of the receipt of erroneous deductions and contributions under </ins>&#10;29.23   <ins>paragraph (a), clause (2), or paragraph (c), the association must require the employer to </ins>&#10;29.24   <ins>discontinue the erroneous employee deductions and erroneous employer contributions. </ins>&#10;29.25   <ins>Upon discontinuation, the association must refund the invalid employee deductions to the </ins>&#10;29.26   <ins>person without interest and invalid employer contributions to the employer or provide a </ins>&#10;29.27   <ins>credit against future contributions payable by the employer for the amount of all erroneous </ins>&#10;29.28   <ins>deductions and contributions.  In the event a retirement annuity or disability benefit had </ins>&#10;29.29   <ins>been computed using invalid service or salary, the association must adjust the annuity or </ins>&#10;29.30   <ins>benefit and recover the overpayment under subdivision 7b.</ins>&#10;29.31   <ins>(e) </ins>In the event a salary warrant or check from which a deduction for the retirement &#10;29.32   fund was taken has been canceled or the amount of the warrant or check returned to the &#10;29.33   funds of the department making the payment, a refund of the sum deducted, or a portion of &#10;29.34   it that is required to adjust the deductions, must be made to the department or institution.&#10;29.35   <ins>(f) Any refund to a member under this subdivision that would cause the plan to fail </ins>&#10;29.36   <ins>to be a qualified plan under section 401(a) of the Internal Revenue Code, as amended, may </ins>&#10;30.1    <ins>not be refunded and instead must be credited against future contributions payable by the </ins>&#10;30.2    <ins>employer.  The employer receiving the credit is responsible for refunding to the applicable </ins>&#10;30.3    <ins>employee any amount that had been erroneously deducted from the person's salary.</ins>&#10;&#10;<a id="go.3.17.0"></a>30.4        Sec. 17. Minnesota Statutes 2004, section 353.27, subdivision 7a, is amended to read:&#10;30.5        Subd. 7a. <b>Deductions or contributions transmitted by error.</b> (a) If employee &#10;30.6    deductions and employer contributions were erroneously transmitted to the association, &#10;30.7    but should have been transmitted to another Minnesota public pension plan, the &#10;30.8    association shall transfer the erroneous employee deductions and employer contributions &#10;30.9    to the appropriate retirement fund <ins>or individual account, as applicable, </ins>without interest. &#10;30.10   The time limitations in subdivisions 7 and 12 do not apply.&#10;30.11   (b) For purposes of this subdivision, a Minnesota public pension plan means a &#10;30.12   plan specified in section   356.30, subdivision 3, or the <del>plan</del><ins> plans</ins> governed by <del>chapter</del><ins> </ins>&#10;30.13   <ins>chapters 353D and</ins> 354B. &#10;30.14   <ins>(c) A potential transfer under paragraph (a) that would cause the plan to fail to be a </ins>&#10;30.15   <ins>qualified plan under section 401(a) of the Internal Revenue Code, as amended, must not be </ins>&#10;30.16   <ins>made by the executive director of the association.  Within 30 days after being notified by </ins>&#10;30.17   <ins>the Public Employees Retirement Association of an unmade potential transfer under this </ins>&#10;30.18   <ins>paragraph, the employer of the affected person must transmit an amount representing the </ins>&#10;30.19   <ins>applicable salary deductions and employer contributions, without interest, to the retirement </ins>&#10;30.20   <ins>fund of the appropriate Minnesota public pension plan, or to the individual account if the </ins>&#10;30.21   <ins>proper coverage is by a defined contribution plan.  The association must provide a credit </ins>&#10;30.22   <ins>for the amount of the erroneous salary deductions and employer contributions against </ins>&#10;30.23   <ins>future contributions from the employer.</ins>&#10;&#10;<a id="go.3.18.0"></a>30.24       Sec. 18. Minnesota Statutes 2004, section 353.27, subdivision 7b, is amended to read:&#10;30.25       Subd. 7b. <b>Overpayments to members.</b> In the event of an overpayment to a &#10;30.26   member, <ins>retiree, beneficiary, or other person, </ins>the executive director shall recover the &#10;30.27   overpayment by suspending or reducing the payment of a retirement annuity, refund, &#10;30.28   disability benefit, survivor benefit, or optional annuity under this chapter until all &#10;30.29   outstanding money has been recovered.&#10;&#10;<a id="go.3.19.0"></a>30.30       Sec. 19. Minnesota Statutes 2005 Supplement, section 353.28, subdivision 6, is &#10;30.31   amended to read:&#10;30.32       Subd. 6. <b>Collection of unpaid amounts.</b> (a) If a governmental subdivision which &#10;30.33   receives the direct proceeds of property taxation fails to pay an amount due under chapter &#10;31.1    353, 353A, 353B, 353C, or 353D, the executive director shall certify the amount to the &#10;31.2    governmental subdivision for payment. If the governmental subdivision fails to remit the &#10;31.3    sum so due in a timely fashion, the executive director shall certify the amount to the &#10;31.4    applicable county auditor for collection. The county auditor shall collect the amount &#10;31.5    out of the revenue of the governmental subdivision, or shall add the amount to the levy &#10;31.6    of the governmental subdivision and make payment directly to the association. This &#10;31.7    tax must be levied, collected, and apportioned in the manner that other taxes are levied, &#10;31.8    collected, and apportioned.&#10;31.9    (b) If a governmental subdivision which is not funded directly from the proceeds &#10;31.10   of property taxation fails to pay an amount due under this chapter, the executive director &#10;31.11   shall certify the amount to the governmental subdivision for payment. If the governmental &#10;31.12   subdivision fails to pay the amount for a period of 60 days after certification, the executive &#10;31.13   director shall certify the amount to the commissioner of finance, who shall deduct the &#10;31.14   amount from any subsequent state-aid payment or state appropriation amount applicable &#10;31.15   to the governmental subdivision<ins> and make payment directly to the association</ins>.&#10;&#10;<a id="go.3.20.0"></a>31.16       Sec. 20. Minnesota Statutes 2004, section 353.29, subdivision 8, is amended to read:&#10;31.17       Subd. 8. <b>Annuities; payment; evidence of receipt.</b> Payment of any annuity or &#10;31.18   benefit for a given month shall be mailed by the association to the annuitant, recipient &#10;31.19   of a disability benefit, or survivor, <ins>or automatically deposited under section 356.401, </ins>&#10;31.20   <ins>subdivision 2, </ins>during the first week of that month. <del>Evidence of receipt of warrants issued </del>&#10;31.21   <del>by the association in payment of an annuity or benefit shall be submitted by the payee </del>&#10;31.22   <del>thereof to the association periodically at times specified by the board of trustees, together </del>&#10;31.23   <del>with a written declaration that the annuitant or recipient of a disability benefit has or </del>&#10;31.24   <del>has not returned to public service; that the surviving dependent spouse has or has not </del>&#10;31.25   <del>remarried; and shall be furnished on forms provided by the executive director thereof, </del>&#10;31.26   <del>before the association shall pay to the disability recipient or survivor for the next ensuing </del>&#10;31.27   <del>month, the benefit to which the person otherwise may be entitled. In lieu of the evidence </del>&#10;31.28   <del>of receipt of warrants for recipients of an annuity or a benefit,</del> The board may contract &#10;31.29   for professional services to identify deceased annuitants and benefit recipients through a &#10;31.30   review of nationally maintained death records.&#10;&#10;<a id="go.3.21.0"></a>31.31       Sec. 21. Minnesota Statutes 2004, section 353.30, subdivision 3a, is amended to read:&#10;31.32       Subd. 3a. <b>Bounce-back annuity.</b> (a) If a former member or disabilitant selects a &#10;31.33   joint and survivor annuity option under subdivision 3<ins> after June 30, 1989</ins>, the former &#10;31.34   member or disabilitant must receive a normal single life annuity if the designated optional &#10;32.1    annuity beneficiary dies before the former member or disabilitant. Under this option, no &#10;32.2    reduction may be made in the person's annuity to provide for restoration of the normal &#10;32.3    single life annuity in the event of the death of the designated optional annuity beneficiary.&#10;32.4    (b) <del>A former member or disabilitant who selected an optional joint and survivor </del>&#10;32.5    <del>annuity before July 1, 1989, but did not choose an option that provides that the normal </del>&#10;32.6    <del>single life annuity is payable to the former member or the disabilitant if the designated </del>&#10;32.7    <del>optional annuity beneficiary dies first, is eligible for restoration of the normal single life </del>&#10;32.8    <del>annuity if the designated optional annuity beneficiary dies first, without further actuarial </del>&#10;32.9    <del>reduction of the person's annuity. A former member or disabilitant who selected an </del>&#10;32.10   <del>optional joint and survivor annuity, but whose designated optional annuity beneficiary died </del>&#10;32.11   <del>before July 1, 1989, shall receive a normal single life annuity after that date, but shall not </del>&#10;32.12   <del>receive retroactive payments for periods before that date</del><ins> The annuity adjustment specified </ins>&#10;32.13   <ins>in paragraph (a) also applies to joint and survivor annuity options under subdivision </ins>&#10;32.14   <ins>3 elected prior to July 1, 1989. The annuity adjustment under this paragraph occurs on </ins>&#10;32.15   <ins>July 1, 1989, or on the first day of the first month following the death of the designated </ins>&#10;32.16   <ins>optional annuity beneficiary, whichever is later. This paragraph should not be interpreted </ins>&#10;32.17   <ins>as authorizing retroactive payments</ins>.&#10;32.18   <del>(c) A former member or disabilitant who took a further actuarial reduction to elect </del>&#10;32.19   <del>an optional joint and survivor annuity that provides that the normal annuity is payable to </del>&#10;32.20   <del>the former member or disabilitant if the designated optional beneficiary dies first but has </del>&#10;32.21   <del>not died before July 1, 1989, shall have their annuity increased as of July 1, 1989, to the </del>&#10;32.22   <del>amount the person would have received if, at the time of retirement or disability, the person </del>&#10;32.23   <del>had selected only optional survivor coverage that would not have provided for restoration </del>&#10;32.24   <del>of the normal annuity upon the death of the designated optional annuity beneficiary. Any </del>&#10;32.25   <del>annuity or benefit increase under this paragraph is effective only for payments made after </del>&#10;32.26   <del>June 30, 1989, and is not retroactive for payments made before July 1, 1989.</del>&#10;&#10;<a id="go.3.22.0"></a>32.27       Sec. 22. Minnesota Statutes 2004, section 353.30, subdivision 3b, is amended to read:&#10;32.28       Subd. 3b. <b>Bounce-back annuity.</b> (a) The board of trustees must provide a joint &#10;32.29   and survivor annuity option to members of the police and fire fund. <del>Under this option, a</del> &#10;32.30   <ins>If a joint and survivor annuity is elected on or after July 1, 1989, the</ins> former member or &#10;32.31   disabilitant must receive a normal single life annuity if the designated optional annuity &#10;32.32   beneficiary dies before the former member or disabilitant. Under this option, no reduction &#10;32.33   may be made in the person's annuity to provide for restoration of the normal single life &#10;32.34   annuity in the event of the death of the designated optional annuity beneficiary.&#10;33.1    (b) <del>A former member or disabilitant of the police and fire fund who selected an </del>&#10;33.2    <del>optional joint and survivor annuity before July 1, 1989, but did not choose an option </del>&#10;33.3    <del>that provides that the normal single life annuity is payable to the former member or </del>&#10;33.4    <del>the disabilitant if the designated optional annuity beneficiary dies first, is eligible for </del>&#10;33.5    <del>restoration of the normal single life annuity if the designated optional annuity beneficiary </del>&#10;33.6    <del>dies first, without further actuarial reduction of the person's annuity. A former member </del>&#10;33.7    <del>or disabilitant who selected an optional joint and survivor annuity, but whose designated </del>&#10;33.8    <del>optional annuity beneficiary died before July 1, 1989, shall receive a normal single life </del>&#10;33.9    <del>annuity after that date, but shall not receive retroactive payments for periods before that </del>&#10;33.10   <del>date</del><ins> The annuity adjustment specified in paragraph (a) also applies to joint and survivor </ins>&#10;33.11   <ins>annuity options under subdivision 3 elected prior to July 1, 1989.  The annuity adjustment </ins>&#10;33.12   <ins>under this paragraph occurs on July 1, 1989, or on the first day of the first month following </ins>&#10;33.13   <ins>the death of the designated optional annuity beneficiary, whichever is later.  This paragraph </ins>&#10;33.14   <ins>should not be interpreted as authorizing retroactive payments</ins>.&#10;33.15   <del>(c) A former member or disabilitant who took a further actuarial reduction to elect </del>&#10;33.16   <del>an optional joint and survivor annuity that provides that the normal annuity is payable to </del>&#10;33.17   <del>the former member or disabilitant if the designated optional beneficiary dies first but has </del>&#10;33.18   <del>not died before July 1, 1989, shall have their annuity increased as of July 1, 1989, to the </del>&#10;33.19   <del>amount the person would have received if, at the time of retirement or disability, the person </del>&#10;33.20   <del>had selected only optional survivor coverage that would not have provided for restoration </del>&#10;33.21   <del>of the normal annuity upon the death of the designated optional annuity beneficiary. Any </del>&#10;33.22   <del>annuity or benefit increase under this paragraph is effective only for payments made after </del>&#10;33.23   <del>June 30, 1989, and is not retroactive for payments made before July 1, 1989.</del>&#10;&#10;<a id="go.3.23.0"></a>33.24       Sec. 23. Minnesota Statutes 2004, section 353.32, subdivision 1a, is amended to read:&#10;33.25       Subd. 1a. <b>Surviving spouse optional annuity.</b> (a) If a member or former member &#10;33.26   who has credit for not less than three years of allowable service and dies before the &#10;33.27   annuity or disability benefit begins to accrue under section  353.29, subdivision 7, or  &#10;33.28   353.33, subdivision 2, notwithstanding any designation of beneficiary to the contrary, the &#10;33.29   surviving spouse may elect to receive, instead of a refund with interest under subdivision &#10;33.30   1, or surviving spouse benefits otherwise payable under section  353.31, an annuity equal &#10;33.31   to the 100 percent joint and survivor annuity that the member could have qualified for &#10;33.32   had the member terminated service on the date of death. &#10;33.33   (b) If the member was under age 55 and has credit for at least 30 years of allowable &#10;33.34   service on the date of death, the surviving spouse may elect to receive a 100 percent joint &#10;33.35   and survivor annuity based on the age of the member and surviving spouse on the date &#10;34.1    of death. The annuity is payable using the full early retirement reduction under section  &#10;34.2    353.30, subdivisions 1b and 1c, to age 55 and one-half of the early retirement reduction &#10;34.3    from age 55 to the age payment begins. &#10;34.4    (c) If the member was under age 55 and has credit for at least three years of &#10;34.5    allowable service on the date of death but did not qualify for retirement, the surviving &#10;34.6    spouse may elect to receive the 100 percent joint and survivor annuity based on the age of &#10;34.7    the member and surviving spouse at the time of death. The annuity is payable using the &#10;34.8    full early retirement reduction under section  353.30, subdivision 1, 1b, 1c, or 5, to age 55 &#10;34.9    and one-half of the early retirement reduction from age 55 to the age payment begins. &#10;34.10   <ins>(d) </ins>Notwithstanding the definition of surviving spouse in section  353.01, subdivision &#10;34.11   20, a former spouse of the member, if any, is entitled to a portion of the monthly surviving &#10;34.12   spouse optional annuity if stipulated under the terms of a marriage dissolution decree filed &#10;34.13   with the association. If there is no surviving spouse or child or children, a former spouse &#10;34.14   may be entitled to a lump-sum refund payment under subdivision 1, if provided for in a &#10;34.15   marriage dissolution decree but not a monthly surviving spouse optional annuity despite &#10;34.16   the terms of a marriage dissolution decree filed with the association. &#10;34.17   <ins>(e) </ins>The surviving spouse eligible for surviving spouse benefits under paragraph (a) &#10;34.18   may apply for the annuity at any time after the date on which the deceased employee &#10;34.19   would have attained the required age for retirement based on the employee's allowable &#10;34.20   service. The surviving spouse eligible for surviving spouse benefits under paragraph (b) &#10;34.21   or (c) may apply for an annuity any time after the member's death. The annuity must be &#10;34.22   computed under sections  353.29, subdivisions 2 and 3;  <ins>and </ins>353.30, subdivisions 1, 1a, &#10;34.23   1b, 1c, and 5<del>; and  </del><del>353.31, subdivision 3</del>. &#10;34.24   <ins>(f) </ins>Sections  353.34, subdivision 3, and  353.71, subdivision 2, apply to a deferred &#10;34.25   annuity or surviving spouse benefit payable under this subdivision. No payment may &#10;34.26   accrue beyond the end of the month in which entitlement to the annuity has terminated &#10;34.27   or upon expiration of the term certain benefit payment under subdivision 1b. An amount &#10;34.28   equal to any excess of the accumulated contributions that were credited to the account of &#10;34.29   the deceased employee over and above the total of the annuities paid and payable to the &#10;34.30   surviving spouse must be paid to the <del>deceased member's last designated beneficiary or, if </del>&#10;34.31   <del>none, as specified under subdivision 1</del><ins> surviving spouse's estate</ins>. &#10;34.32   <ins>(g) </ins>A member may specify in writing that this subdivision does not apply and that &#10;34.33   payment may be made only to the designated beneficiary as otherwise provided by this &#10;34.34   chapter.<ins> The waiver of a surviving spouse annuity under this section does not make a </ins>&#10;34.35   <ins>dependent child eligible for benefits under subdivision 1c. </ins>&#10;&#10;<a id="go.3.24.0"></a>35.1        Sec. 24. Minnesota Statutes 2004, section 353.32, subdivision 1b, is amended to read:&#10;35.2        Subd. 1b. <b>Survivor coverage term certain.</b> <ins>(a) </ins>In lieu of the 100 percent optional &#10;35.3    annuity under subdivision 1a, or a refund under subdivision 1, the surviving spouse of &#10;35.4    a deceased member may elect to receive survivor coverage for a term certain of <del>five, </del>&#10;35.5    ten, 15, or 20 years, but monthly payments must not exceed 75 percent of the average &#10;35.6    high-five monthly salary of the deceased member. The monthly term certain annuity must &#10;35.7    be actuarially equivalent to the 100 percent optional annuity under subdivision 1a.&#10;35.8    <ins>(b) </ins>If a surviving spouse elects a term certain annuity and dies before the expiration &#10;35.9    of the specified term certain period, the commuted value of the remaining annuity &#10;35.10   payments must be paid in a lump sum to the survivor's estate.&#10;&#10;<a id="go.3.25.0"></a>35.11       Sec. 25. Minnesota Statutes 2004, section 353.33, subdivision 1, is amended to read:&#10;35.12       Subdivision 1. <b>Age, service, and salary requirements.</b> A coordinated member &#10;35.13   who has at least three years of allowable service and becomes totally and permanently &#10;35.14   disabled before normal retirement age, and a basic member who has at least three years &#10;35.15   of allowable service and who becomes totally and permanently disabled is entitled to a &#10;35.16   disability benefit in an amount <ins>determined </ins>under subdivision 3. If the disabled person's &#10;35.17   public service has terminated at any time, at least two of the required three years of &#10;35.18   allowable service must have been rendered after last becoming <del>a</del> <ins>an active </ins>member. A &#10;35.19   repayment of a refund must be made within six months after the effective date of disability &#10;35.20   benefits under subdivision 2 or within six months after the date of the filing of the &#10;35.21   disability application, whichever is later. No purchase of prior service or payment made &#10;35.22   in lieu of salary deductions otherwise authorized under section  353.01, subdivision 16,  &#10;35.23   <del>353.017, subdivision 4</del><del>, or  </del><del>353.36, subdivision 2</del><del>,</del> may be made after the occurrence of the &#10;35.24   disability for which an application under this section is filed. &#10;&#10;<a id="go.3.26.0"></a>35.25       Sec. 26. Minnesota Statutes 2004, section 353.33, subdivision 9, is amended to read:&#10;35.26       Subd. 9. <b>Return to </b><del><b>public service</b></del><ins><b> employment</b></ins><b>.</b> <ins>(a) </ins>Any person receiving a &#10;35.27   disability benefit <ins>under this section </ins>who is restored to <del>active public service except persons </del>&#10;35.28   <del>receiving benefits as provided in</del><ins> employment not covered by</ins> subdivision 7<del>,</del><ins> or 7a</ins> shall &#10;35.29   have <ins>the disability benefit discontinued on the first day of the month following the return </ins>&#10;35.30   <ins>to employment.</ins>&#10;35.31   <ins>(b) If the person is employed by a governmental subdivision as defined under </ins>&#10;35.32   <ins>section 353.01, subdivision 6, </ins>deductions <ins>must be </ins>taken for the retirement fund and upon &#10;35.33   subsequent retirement have the retirement annuity payable based upon all allowable &#10;35.34   service including that upon which the disability benefits were based.&#10;36.1    <ins>(c) If the employment is not through public service covered under this chapter, the </ins>&#10;36.2    <ins>account may be placed on a deferred status and the subsequent retirement annuity must </ins>&#10;36.3    <ins>be calculated as provided in section 353.34, subdivision 3, if the person meets the length </ins>&#10;36.4    <ins>of allowable service requirement stated in that subdivision; or the person may request a </ins>&#10;36.5    <ins>refund of any remaining employee deductions. The refund shall be in an amount equal </ins>&#10;36.6    <ins>to the accumulated employee deductions plus six percent interest compounded annually </ins>&#10;36.7    <ins>less the sum of the disability benefits paid to the member.</ins>&#10;&#10;<a id="go.3.27.0"></a>36.8        Sec. 27. <ins><b>[353.335] DISABILITANT EARNINGS REPORTS.</b></ins>&#10;36.9    <ins>Disability benefit recipients must report all earnings from reemployment and from </ins>&#10;36.10   <ins>income from workers' compensation to the association annually by May 15 in a format </ins>&#10;36.11   <ins>prescribed by  the executive director.  If the form is not submitted by May 15, benefits will </ins>&#10;36.12   <ins>be suspended effective June 1.  Upon receipt of the form, if the disability benefit recipient </ins>&#10;36.13   <ins>is deemed to be eligible for continued payment, benefits will be reinstated retroactive </ins>&#10;36.14   <ins>to June 1.</ins>&#10;&#10;<a id="go.3.28.0"></a>36.15       Sec. 28. Minnesota Statutes 2004, section 353.34, subdivision 1, is amended to read:&#10;36.16       Subdivision 1. <b>Refund or deferred annuity.</b> (a) A former member is entitled &#10;36.17   to a refund of accumulated employee deductions under subdivision 2, or to a deferred &#10;36.18   annuity under subdivision 3. Application for a refund may not be made prior to the date &#10;36.19   of termination of public service<del> or the termination of membership, whichever is sooner</del>. &#10;36.20   Except as specified in paragraph (b), a refund must be paid within 120 days following &#10;36.21   receipt of the application unless the applicant has again become a public employee &#10;36.22   required to be covered by the association.&#10;36.23   (b) If an individual was <del>granted an authorized temporary</del><ins> placed on</ins> layoff<ins> under </ins>&#10;36.24   <ins>section 353.01, subdivision 12 or 12c</ins>, a refund is not payable before termination of &#10;36.25   <del>membership</del><ins> service </ins>under section 353.01, subdivision <del>11b, clause (3)</del><ins> 11a</ins>. &#10;36.26   (c) An individual who terminates public service covered by the Public Employees &#10;36.27   Retirement Association general plan, the Public Employees Retirement Association police &#10;36.28   and fire plan, or the public employees local government corrections service retirement &#10;36.29   plan, and who <ins>is employed by a different employer and </ins>becomes an active member &#10;36.30   covered by one of the other two plans, may receive a refund of employee contributions &#10;36.31   plus six percent interest compounded annually from the plan in which the member &#10;36.32   terminated service.&#10;&#10;<a id="go.3.29.0"></a>36.33       Sec. 29. Minnesota Statutes 2004, section 353.656, subdivision 4, is amended to read:&#10;37.1        Subd. 4. <b>Limitation on disability benefit payments.</b> (a) No member is entitled to &#10;37.2    receive a disability benefit payment when there remains to the member's credit unused &#10;37.3    annual leave or sick leave or under any other circumstances when, during the period of &#10;37.4    disability, there has been no impairment of the person's salary as a police officer<del> or</del><ins>,</ins> a &#10;37.5    firefighter, <ins>or a paramedic as defined in section 353.64, subdivision 10, </ins>whichever applies.&#10;37.6    (b) If a disabled member resumes a gainful occupation with earnings<del> less than</del><ins>, </ins>&#10;37.7    <ins>that when added to the normal disability benefit, and workers' compensation benefit </ins>&#10;37.8    <ins>if applicable, exceed</ins> the disabilitant reemployment earnings limit, the amount of the &#10;37.9    disability benefit must be reduced as provided in this paragraph. The disabilitant &#10;37.10   reemployment earnings limit is the greater of:&#10;37.11   (1) the salary earned at the date of disability; or&#10;37.12   (2) 125 percent of the <ins>base </ins>salary currently paid by the employing governmental &#10;37.13   subdivision for similar positions.&#10;37.14   The disability benefit must be reduced by one dollar for each three dollars by which &#10;37.15   the total amount of the current disability benefit, any workers' compensation benefits<ins> if </ins>&#10;37.16   <ins>applicable</ins>, and actual earnings exceed the greater disabilitant reemployment earnings &#10;37.17   limit. In no event may the disability benefit as adjusted under this subdivision exceed &#10;37.18   the disability benefit originally allowed.&#10;&#10;<a id="go.3.30.0"></a>37.19       Sec. 30. Minnesota Statutes 2004, section 353D.01, subdivision 2, is amended to read:&#10;37.20       Subd. 2. <b>Eligibility.</b> (a) Eligibility to participate in the defined contribution plan &#10;37.21   is available to:&#10;37.22   (1) elected local government officials of a governmental subdivision who elect to &#10;37.23   participate in the plan under section  353D.02, subdivision 1, and who, for the elected &#10;37.24   service rendered to a governmental subdivision, are not members of the Public Employees &#10;37.25   Retirement Association within the meaning of section  353.01, subdivision 7; &#10;37.26   (2) physicians who, if they did not elect to participate in the plan under section  &#10;37.27   353D.02, subdivision 2, would meet the definition of member under section  353.01, &#10;37.28   subdivision 7; &#10;37.29   (3) basic and advanced life support emergency medical service personnel employed &#10;37.30   by <del>or providing services for</del> any public ambulance service <del>or privately operated ambulance </del>&#10;37.31   <del>service that receives an operating subsidy from a governmental entity</del> that elects to &#10;37.32   participate under section  353D.02, subdivision 3; &#10;37.33   (4) members of a municipal rescue squad associated with Litchfield in Meeker &#10;37.34   County, or of a county rescue squad associated with Kandiyohi County, if an independent &#10;37.35   nonprofit rescue squad corporation, incorporated under chapter 317A, performing &#10;38.1    emergency management services, and if not affiliated with a fire department or ambulance &#10;38.2    service and if its members are not eligible for membership in that fire department's or &#10;38.3    ambulance service's relief association or comparable pension plan; <del>and</del>&#10;38.4    (5) employees of the Port Authority of the city of St. Paul who elect to participate in &#10;38.5    the plan under section  353D.02, subdivision 5, and who are not members of the Public &#10;38.6    Employees Retirement Association under section  353.01, subdivision 7<ins>;</ins> &#10;38.7    <ins>(6) city managers who elected to be excluded from the general employees retirement </ins>&#10;38.8    <ins>plan of the Public Employees Retirement Association under section 353.028 and who </ins>&#10;38.9    <ins>elected to participate in the public employees defined contribution plan under section </ins>&#10;38.10   <ins>353.028, subdivision 3, paragraph (b); and</ins>&#10;38.11   <ins>(7) volunteer or emergency on-call firefighters serving in a municipal fire department </ins>&#10;38.12   <ins>or an independent nonprofit firefighting corporation who are not covered by the public </ins>&#10;38.13   <ins>employees police and fire retirement plan and who are not covered by a volunteer </ins>&#10;38.14   <ins>firefighters relief association and who elect to participate in the public employees defined </ins>&#10;38.15   <ins>contribution plan</ins>.&#10;38.16   (b) For purposes of this chapter, an elected local government official includes &#10;38.17   a person appointed to fill a vacancy in an elective office. Service as an elected local &#10;38.18   government official only includes service for the governmental subdivision for which the &#10;38.19   official was elected by the public-at-large. Service as an elected local government official &#10;38.20   ceases and eligibility to participate terminates when the person ceases to be an elected &#10;38.21   official. An elected local government official does not include an elected county sheriff.&#10;38.22   (c) Individuals otherwise eligible to participate in the plan under this subdivision &#10;38.23   who are currently covered by a public or private pension plan because of their employment &#10;38.24   or provision of services are not eligible to participate in the public employees defined &#10;38.25   contribution plan.&#10;38.26   (d) A former participant is a person who has terminated eligible employment or &#10;38.27   service and has not withdrawn the value of the person's individual account.&#10;&#10;<a id="go.3.31.0"></a>38.28       Sec. 31. Minnesota Statutes 2004, section 353D.02, subdivision 3, is amended to read:&#10;38.29       Subd. 3. <b>Eligible ambulance service personnel.</b> Each public ambulance service &#10;38.30   <del>or privately operated ambulance service</del> with eligible personnel <del>that receives an operating </del>&#10;38.31   <del>subsidy from a governmental entity</del> may elect to participate in the plan. If a service elects &#10;38.32   to participate, its eligible personnel may elect to participate or to decline to participate. An &#10;38.33   individual's election must be made within 30 days of the service's election to participate &#10;38.34   or 30 days of the date on which the individual was employed by the service or began to &#10;39.1    provide service for it, whichever date is later. An election by a service or an individual is &#10;39.2    revocable.&#10;&#10;<a id="go.3.32.0"></a>39.3        Sec. 32. Minnesota Statutes 2004, section 353D.02, is amended by adding a &#10;39.4    subdivision to read:&#10;39.5        <ins>Subd. 6.</ins> <ins><b>City managers.</b></ins> <ins>City managers who elected to be excluded from the </ins>&#10;39.6    <ins>general employees retirement plan of the Public Employees Retirement Association </ins>&#10;39.7    <ins>under section 353.028, and who elected to participate in the plan under section 353.028, </ins>&#10;39.8    <ins>subdivision 3, paragraph (b), shall file that election with the executive director. </ins>&#10;39.9    <ins>Participation begins on the first day of the pay period next following the date of the </ins>&#10;39.10   <ins>coverage election. An election to participate by a city manager is revocable.</ins>&#10;&#10;<a id="go.3.33.0"></a>39.11       Sec. 33. Minnesota Statutes 2004, section 353D.02, is amended by adding a &#10;39.12   subdivision to read:&#10;39.13       <ins>Subd. 7.</ins> <ins><b>Certain volunteer firefighters.</b></ins> <ins>Volunteer or emergency on-call firefighters </ins>&#10;39.14   <ins>who are serving as members of a municipal fire department or an independent nonprofit </ins>&#10;39.15   <ins>firefighting corporation and who are not covered for that firefighting service by the </ins>&#10;39.16   <ins>public employees police and fire retirement plan under sections 353.63 to 353.68 or by </ins>&#10;39.17   <ins>the applicable volunteer firefighters relief association under chapter 424A may elect to </ins>&#10;39.18   <ins>participate in the plan. An eligible firefighter's election is irrevocable. No employer </ins>&#10;39.19   <ins>contribution is payable by the fire department or the firefighting corporation unless the </ins>&#10;39.20   <ins>municipal governing body or the firefighting corporation governing body, whichever </ins>&#10;39.21   <ins>applies, ratifies the election.</ins>&#10;&#10;<a id="go.3.34.0"></a>39.22       Sec. 34. Minnesota Statutes 2004, section 353D.03, is amended by adding a &#10;39.23   subdivision to read:&#10;39.24       <ins>Subd. 5.</ins> <ins><b>City managers.</b></ins> <ins>A city manager who elects to participate in the plan </ins>&#10;39.25   <ins>shall contribute an amount equal to the contribution under section 353.27, subdivision </ins>&#10;39.26   <ins>2. The applicable city shall make a contribution equal to the contribution required under </ins>&#10;39.27   <ins>section 353.27, subdivision 3.</ins>&#10;&#10;<a id="go.3.35.0"></a>39.28       Sec. 35. Minnesota Statutes 2004, section 353D.03, is amended by adding a &#10;39.29   subdivision to read:&#10;39.30       <ins>Subd. 6.</ins> <ins><b>Volunteer firefighters.</b></ins> <ins>(a) Unless paragraph (b) applies, a volunteer or </ins>&#10;39.31   <ins>emergency on-call firefighter who elects to participate in the plan shall contribute at least </ins>&#10;39.32   <ins>7.5 percent of any compensation received for firefighting services.</ins>&#10;40.1    <ins>(b) If the municipality or the independent nonprofit firefighting corporation ratified </ins>&#10;40.2    <ins>the election of plan coverage under section 353D.02, subdivision 6, the volunteer </ins>&#10;40.3    <ins>firefighter and the employing unit shall contribute in total an amount equal at least to 7.5 </ins>&#10;40.4    <ins>percent of any compensation received for firefighting services.</ins>&#10;&#10;<a id="go.3.36.0"></a>40.5        Sec. 36. Minnesota Statutes 2004, section 353E.02, subdivision 3, is amended to read:&#10;40.6        Subd. 3. <b>County correctional institution.</b> A county correctional institution is:&#10;40.7    (1) a jail administered by a county;&#10;40.8    (2) a correctional facility administered by a county; <del>or</del>&#10;40.9    (3) a regional correctional facility administered by or on behalf of multiple counties<ins>; </ins>&#10;40.10   <ins>or</ins>&#10;40.11   <ins>(4) a juvenile correctional facility administered by a county or on behalf of multiple </ins>&#10;40.12   <ins>counties</ins>.&#10;&#10;<a id="go.3.37.0"></a>40.13       Sec. 37. Minnesota Statutes 2004, section 354.45, subdivision 1a, is amended to read:&#10;40.14       Subd. 1a. <b>Bounce-back annuity.</b> (a) If a former member or disabilitant selects a &#10;40.15   joint and survivor annuity option under subdivision 1<ins> after June 30, 1989</ins>, the former &#10;40.16   member or disabilitant must receive a normal single life annuity if the designated optional &#10;40.17   annuity beneficiary dies before the former member or disabilitant. Under this option, no &#10;40.18   reduction may be made in the person's annuity to provide for restoration of the normal &#10;40.19   single life annuity in the event of the death of the designated optional annuity beneficiary.&#10;40.20   (b) <del>A former member or disabilitant who selected an optional joint and survivor </del>&#10;40.21   <del>annuity before July 1, 1989, but did not choose an option that provides that the normal </del>&#10;40.22   <del>single life annuity is payable to the former member or the disabilitant if the designated </del>&#10;40.23   <del>optional annuity beneficiary dies first, is eligible for restoration of the normal single life </del>&#10;40.24   <del>annuity if the designated optional annuity beneficiary dies first, without further actuarial </del>&#10;40.25   <del>reduction of the person's annuity. A former member or disabilitant who selected an </del>&#10;40.26   <del>optional joint and survivor annuity, but whose designated optional annuity beneficiary died </del>&#10;40.27   <del>before July 1, 1989, shall receive a normal single life annuity after that date, but shall not </del>&#10;40.28   <del>receive retroactive payments for periods before that date</del><ins> The annuity adjustment specified </ins>&#10;40.29   <ins>in paragraph (a) also applies to joint and survivor annuity options under subdivision </ins>&#10;40.30   <ins>1 elected prior to July 1, 1989. The annuity adjustment under this paragraph occurs on </ins>&#10;40.31   <ins>July 1, 1989, or on the first day of the first month following the death of the designated </ins>&#10;40.32   <ins>optional annuity beneficiary, whichever is later. This paragraph should not be interpreted </ins>&#10;40.33   <ins>as authorizing retroactive payments</ins>.&#10;41.1    <del>(c) The restoration of the normal single life annuity under this subdivision will take </del>&#10;41.2    <del>effect on the first of the month following the date of death of the designated optional </del>&#10;41.3    <del>annuity beneficiary or on the first of the month following one year before the date on </del>&#10;41.4    <del>which a certified copy of the death record of the designated optional annuity beneficiary is </del>&#10;41.5    <del>received in the office of the Teachers Retirement Association, whichever date is later.</del>&#10;&#10;<a id="go.3.38.0"></a>41.6        Sec. 38. Minnesota Statutes 2004, section 354A.32, subdivision 1a, is amended to read:&#10;41.7        Subd. 1a. <b>Bounce-back annuity.</b> (a) If a former coordinated member or disabilitant &#10;41.8    has selected a joint and survivor annuity option under subdivision 1<ins> after June 30, </ins>&#10;41.9    <ins>1989</ins>, the former member or disabilitant must receive a normal single life annuity if the &#10;41.10   designated optional annuity beneficiary dies before the former member or disabilitant. &#10;41.11   Under this option, no reduction may be made in the person's annuity to provide for &#10;41.12   restoration of the normal single life annuity in the event of the death of the designated &#10;41.13   optional annuity beneficiary.&#10;41.14   (b) <del>A former coordinated member or disabilitant who selected an optional joint </del>&#10;41.15   <del>and survivor annuity before July 1, 1989, but did not choose an option that provides </del>&#10;41.16   <del>that the normal single life annuity is payable to the former member or the disabilitant if </del>&#10;41.17   <del>the designated optional annuity beneficiary dies first, is eligible for restoration of the </del>&#10;41.18   <del>normal single life annuity if the designated optional annuity beneficiary dies first, without </del>&#10;41.19   <del>further actuarial reduction of the person's annuity. A former member or disabilitant who </del>&#10;41.20   <del>selected an optional joint and survivor annuity, but whose designated optional annuity </del>&#10;41.21   <del>beneficiary died before July 1, 1989, shall receive a normal single life annuity after that </del>&#10;41.22   <del>date, but shall not receive retroactive payments for periods before that date</del><ins> The annuity </ins>&#10;41.23   <ins>adjustment specified in paragraph (a) also applies to joint and survivor annuity options </ins>&#10;41.24   <ins>elected prior to July 1, 1989.  The annuity adjustment under this paragraph occurs on </ins>&#10;41.25   <ins>July 1, 1989, or on the first day of the first month following the death of the designated </ins>&#10;41.26   <ins>optional annuity beneficiary, whichever is later.  This paragraph should not be interpreted </ins>&#10;41.27   <ins>as authorizing retroactive payments</ins>.&#10;41.28   (c) <del>A former coordinated member or disabilitant who took a further actuarial </del>&#10;41.29   <del>reduction to elect an optional joint and survivor annuity that provides that the normal </del>&#10;41.30   <del>annuity is payable to the former member or disabilitant if the designated optional </del>&#10;41.31   <del>beneficiary dies first but has not died before July 1, 1989, shall have the annuity increased </del>&#10;41.32   <del>as of July 1, 1989, to the amount the person would have received if, at the time of </del>&#10;41.33   <del>retirement or disability, the person had selected only optional survivor coverage that </del>&#10;41.34   <del>would not have provided for restoration of the normal annuity upon the death of the </del>&#10;41.35   <del>designated optional annuity beneficiary. Any annuity or benefit increase under this </del>&#10;42.1    <del>paragraph is effective only for payments made after June 30, 1989, and is not retroactive </del>&#10;42.2    <del>for payments made before July 1, 1989.</del>&#10;42.3    <del>(d)</del><ins> Unless otherwise specified in this subdivision,</ins> the restoration of the normal &#10;42.4    single life annuity under this subdivision will take effect on the first of the month &#10;42.5    following the date of death of the designated optional annuity beneficiary or on the first of &#10;42.6    the month following one year before the date on which a certified copy of the death record &#10;42.7    of the designated optional annuity beneficiary is received in the office of the appropriate &#10;42.8    teachers retirement fund association, whichever date is later.&#10;&#10;<a id="go.3.39.0"></a>42.9        Sec. 39. Minnesota Statutes 2004, section 354D.05, is amended to read:&#10;42.10   <b>354D.05 CONTRIBUTIONS.</b>&#10;42.11       Subdivision 1. <b>Member contributions.</b> <del>Eligible employees</del> <ins>(a) Participants in the </ins>&#10;42.12   <ins>individual retirement account plan who are specified in section 354D.02, subdivision 2, </ins>&#10;42.13   <ins>clause (1) or (2), and </ins>who would otherwise be <del>eligible to participate in the</del> <ins> members of a </ins>&#10;42.14   Minnesota State Retirement System, <del>the</del> Public Employees Retirement Association, or <del>the</del> &#10;42.15   Teachers Retirement Association<ins> plan</ins>, <del>but who participate in the individual retirement </del>&#10;42.16   <del>account plan,</del> shall make a member contribution <del>in an amount equal to the member </del>&#10;42.17   <del>contribution amount required by the plan for which the individual was originally eligible </del>&#10;42.18   <del>for membership. The contribution</del> <ins> as specified in section 354B.23, subdivision 1.</ins>&#10;42.19   <ins>(b) For individual retirement account plan members specified in section 354D.02, </ins>&#10;42.20   <ins>subdivision 2, clause (3), the member contribution is the employee contribution specified </ins>&#10;42.21   <ins>in applicable law for the Minnesota State Retirement System, Public Employees </ins>&#10;42.22   <ins>Retirement Association, or Teachers Retirement Association plan in which the individual </ins>&#10;42.23   <ins>would otherwise be a member.</ins>&#10;42.24   <ins>(c) Contributions under this subdivision </ins>must be made by payroll deduction each &#10;42.25   pay period and must be in accordance with either section 403(b) or 414(h) of the Internal &#10;42.26   Revenue Code.&#10;42.27       Subd. 2. <b>Employer contributions.</b> <ins>(a) </ins>The employer of <del>eligible employees</del><ins> an </ins>&#10;42.28   <ins>employee</ins> described in subdivision 1 <del>who are eligible to participate in either the Minnesota </del>&#10;42.29   <del>State Retirement System or the Public Employees Retirement Association shall</del><ins>, paragraph </ins>&#10;42.30   <ins>(a), must </ins> make an employer contribution to the <ins>employee's individual retirement account </ins>&#10;42.31   plan <del>in an amount equal to the employer contribution amount required by the plan for </del>&#10;42.32   <del>which the individual was originally eligible for membership</del><ins> account as specified in section </ins>&#10;42.33   <ins>354B.23, subdivisions 3 and 4</ins>. &#10;42.34   <ins>(b) </ins>The employer of <del>eligible employees</del><ins> an employee</ins> described in subdivision 1 &#10;42.35   <del>who are eligible to participate in the Teachers Retirement Association shall</del><ins>, paragraph </ins>&#10;43.1    <ins>(b), must </ins> make an employer contribution to the <ins>employee's individual retirement account </ins>&#10;43.2    plan <del>in an amount</del> <ins> account </ins>equal to the employer contribution <ins>including, if applicable, </ins>&#10;43.3    <ins>any employer additional contribution </ins>required by <del>section  </del><del>354.42, subdivision 3</del><del>, and </del>&#10;43.4    <del>shall make an employer contribution to the</del><ins> applicable plan law for the Minnesota State </ins>&#10;43.5    <ins>Retirement System, Public Employees Retirement Association, or</ins> Teachers Retirement &#10;43.6    Association in <del>an amount equal to</del> <ins> which </ins>the <del>employer contribution required by section </del>&#10;43.7    <del>354.42, subdivision 5</del><ins> individual would otherwise be a member</ins>. &#10;&#10;<a id="go.3.40.0"></a>43.8        Sec. 40. Minnesota Statutes 2004, section 356.24, subdivision 1, is amended to read:&#10;43.9        Subdivision 1. <b>Restriction; exceptions.</b> <ins>(a) </ins>It is unlawful for a school district &#10;43.10   or other governmental subdivision or state agency to levy taxes for, or to contribute &#10;43.11   public funds to a supplemental pension or deferred compensation plan that is established, &#10;43.12   maintained, and operated in addition to a primary pension program for the benefit of the &#10;43.13   governmental subdivision employees other than:&#10;43.14   (1) to a supplemental pension plan that was established, maintained, and operated &#10;43.15   before May 6, 1971;&#10;43.16   (2) to a plan that provides solely for group health, hospital, disability, or death &#10;43.17   benefits;&#10;43.18   (3) to the individual retirement account plan established by chapter 354B;&#10;43.19   (4) to a plan that provides solely for severance pay under section  465.72 to a retiring &#10;43.20   or terminating employee; &#10;43.21   (5) for employees other than personnel employed by the Board of Trustees of the &#10;43.22   Minnesota State Colleges and Universities and covered under the Higher Education &#10;43.23   Supplemental Retirement Plan under chapter 354C, <ins>but including city managers covered </ins>&#10;43.24   <ins>by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph </ins>&#10;43.25   <ins>(a), or by the defined contribution plan of the Public Employees Retirement Association </ins>&#10;43.26   <ins>under section 353.028, subdivision 3, paragraph (b), </ins>if the supplemental plan coverage is &#10;43.27   provided for in a personnel policy of the public employer or in the collective bargaining &#10;43.28   agreement between the public employer and the exclusive representative of public &#10;43.29   employees in an appropriate unit<ins> or in the individual employment contract between a city </ins>&#10;43.30   <ins>and a city manager</ins>, in an amount matching employee contributions on a dollar for dollar &#10;43.31   basis, but not to exceed an employer contribution of $2,000 a year per employee;&#10;43.32   (i) to the state of Minnesota deferred compensation plan under section  352.96; or &#10;43.33   (ii) in payment of the applicable portion of the contribution made to any investment &#10;43.34   eligible under section 403(b) of the Internal Revenue Code, if the employing unit has &#10;44.1    complied with any applicable pension plan provisions of the Internal Revenue Code with &#10;44.2    respect to the tax-sheltered annuity program during the preceding calendar year;&#10;44.3    (6) for personnel employed by the Board of Trustees of the Minnesota State Colleges &#10;44.4    and Universities and not covered by clause (5), to the supplemental retirement plan under &#10;44.5    chapter 354C, if the supplemental plan coverage is provided for in a personnel policy &#10;44.6    or in the collective bargaining agreement of the public employer with the exclusive &#10;44.7    representative of the covered employees in an appropriate unit, in an amount matching &#10;44.8    employee contributions on a dollar for dollar basis, but not to exceed an employer &#10;44.9    contribution of $2,700 a year for each employee;&#10;44.10   (7) to a supplemental plan or to a governmental trust to save for postretirement &#10;44.11   health care expenses qualified for tax-preferred treatment under the Internal Revenue &#10;44.12   Code, if the supplemental plan coverage is provided for in a personnel policy or in the &#10;44.13   collective bargaining agreement of a public employer with the exclusive representative of &#10;44.14   the covered employees in an appropriate unit;&#10;44.15   (8) to the laborer's national industrial pension fund for the employees of a &#10;44.16   governmental subdivision who are covered by a collective bargaining agreement that &#10;44.17   provides for coverage by that fund and that sets forth a fund contribution rate, but not to &#10;44.18   exceed an employer contribution of $2,000 per year per employee;&#10;44.19   (9) to the plumbers' and pipefitters' national pension fund or to a plumbers' and &#10;44.20   pipefitters' local pension fund for the employees of a governmental subdivision who are &#10;44.21   covered by a collective bargaining agreement that provides for coverage by that fund and &#10;44.22   that sets forth a fund contribution rate, but not to exceed an employer contribution of &#10;44.23   $2,000 per year per employee;&#10;44.24   (10) to the international union of operating engineers pension fund for the employees &#10;44.25   of a governmental subdivision who are covered by a collective bargaining agreement that &#10;44.26   provides for coverage by that fund and that sets forth a fund contribution rate, but not to &#10;44.27   exceed an employer contribution of $2,000 per year per employee; or&#10;44.28   (11) to a supplemental plan organized and operated under the federal Internal &#10;44.29   Revenue Code, as amended, that is wholly and solely funded by the employee's &#10;44.30   accumulated sick leave, accumulated vacation leave, and accumulated severance pay.&#10;44.31   <ins>(b) No governmental subdivision may make a contribution to a deferred </ins>&#10;44.32   <ins>compensation plan operating under section 457 of the Internal Revenue Code for volunteer </ins>&#10;44.33   <ins>or emergency on-call firefighters in lieu of providing retirement coverage under the federal </ins>&#10;44.34   <ins>old age, survivors, and disability insurance program.</ins>&#10;&#10;<a id="go.3.41.0"></a>45.1        Sec. 41. Minnesota Statutes 2004, section 356.50, is amended to read:&#10;45.2    <b>356.50 SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN </b>&#10;45.3    <b>THE EVENT OF WRONGFUL DISCHARGE</b><ins><b>; ANNUITY AND DISABILITY </b></ins>&#10;45.4    <ins><b>TREATMENT</b></ins><b>.</b>&#10;45.5        <ins>Subdivision 1.</ins> <ins><b>Application.</b></ins> (a) A person who is wrongfully discharged from public &#10;45.6    employment that gave rise to coverage by a public employee pension plan enumerated &#10;45.7    in section  356.30, subdivision 3, is entitled to obtain allowable service credit from the &#10;45.8    applicable public employee pension plan for the applicable period caused by the wrongful &#10;45.9    discharge. &#10;45.10   (b) A person is wrongfully discharged for purposes of this section if:&#10;45.11   (1) the person has been determined by a court of competent jurisdiction <del>or</del><ins>,</ins> by an &#10;45.12   arbitrator in binding arbitration, <ins>by the commissioner of veterans affairs, or by a board, </ins>&#10;45.13   <ins>commission, or panel acting under section 197.46, </ins>whichever applies, to have been &#10;45.14   wrongfully discharged from public employment;&#10;45.15   (2) the person received an award of back pay with respect to that discharge; and&#10;45.16   (3) the award does not include any amount for any lost or interrupted public pension &#10;45.17   plan coverage.&#10;45.18       <ins>Subd. 2.</ins> <ins><b>Service credit procedure.</b></ins> <del>(c)</del><ins> (a)</ins> To obtain the public pension plan &#10;45.19   allowable service credit, the <ins>eligible </ins>person <ins>under subdivision 1 </ins>shall pay the required &#10;45.20   member contribution amount. The required member contribution amount is the member &#10;45.21   contribution rate or rates in effect for the pension plan during the period of service covered &#10;45.22   by the back pay award, applied to the unpaid gross salary amounts of the back pay award &#10;45.23   including unemployment insurance, workers' compensation or wages from other sources &#10;45.24   which reduced the back award. No contributions shall be made under this clause for &#10;45.25   compensation covered by a public pension plan listed in section  356.30, subdivision 3, &#10;45.26   for employment during the removal period. The person shall pay the required member &#10;45.27   contribution amount within 60 days of the date of receipt of the back pay award, <del>within </del>&#10;45.28   <del>60 days of April 14, 1992,</del> or within 60 days of a billing from the retirement fund, &#10;45.29   whichever is later. &#10;45.30   <del>(d)</del><ins> (b)</ins> The public employer who wrongfully discharged the public employee must &#10;45.31   pay an employer contribution on the back pay award. The employer contribution must be &#10;45.32   based on the employer contribution rate or rates in effect for the pension plan during the &#10;45.33   period of service covered by the back pay award, applied to the salary amount on which &#10;45.34   the member contribution amount was determined under paragraph <del>(c)</del><ins> (a)</ins>. Interest on both &#10;45.35   the required member and employer contribution amount must be paid by the employer at &#10;45.36   the annual compound rate of 8.5 percent per year, expressed monthly, between the date the &#10;46.1    contribution amount would have been paid to the date of actual payment. The employer &#10;46.2    payment must be made within 30 days of the payment under paragraph <del>(c)</del><ins> (a)</ins>.&#10;46.3        <ins>Subd. 3.</ins> <ins><b>Employer reporting.</b></ins> <ins>The employer must report to the executive director </ins>&#10;46.4    <ins>of the applicable pension plan that a person has been determined to be wrongfully </ins>&#10;46.5    <ins>discharged and the employer must provide a copy of the written order or decision.</ins>&#10;46.6        <ins>Subd. 4.</ins> <ins><b>Annuity repayment.</b></ins> <ins>Notwithstanding subdivisions 1 and 2, if after being </ins>&#10;46.7    <ins>discharged, the person commences receipt of an annuity from the applicable plan, and it is </ins>&#10;46.8    <ins>later determined that the person was wrongfully discharged, the person shall repay the </ins>&#10;46.9    <ins>annuity received in a lump sum within 60 days of receipt of the back pay award. If the </ins>&#10;46.10   <ins>annuity is not repaid, the person is not entitled to reinstatement in the applicable plan as </ins>&#10;46.11   <ins>an active member, is not authorized to make payments under subdivision 2, paragraph </ins>&#10;46.12   <ins>(a), and for subsequent employment with the employer, the person shall be treated as </ins>&#10;46.13   <ins>a reemployed annuitant.</ins>&#10;46.14       <ins>Subd. 5.</ins> <ins><b>Disability treatment.</b></ins> <ins>If a person is wrongfully discharged and prior to </ins>&#10;46.15   <ins>reinstatement takes a refund of employee contributions under the applicable plan's refund </ins>&#10;46.16   <ins>provision and fails to repay that refund, then not withstanding other law to the contrary, if </ins>&#10;46.17   <ins>the person applies for a disability benefit and is approved for that benefit, the disability </ins>&#10;46.18   <ins>benefit amount must be computed solely on the years of covered service provided </ins>&#10;46.19   <ins>after reinstatement, the individual's salary for benefit computation purposes, and the </ins>&#10;46.20   <ins>applicable plan accrual rates, rather than receiving a minimum disability benefit amount, if </ins>&#10;46.21   <ins>applicable, specified in plan law.</ins>&#10;&#10;<a id="go.3.42.0"></a>46.22       Sec. 42. Laws 2004, chapter 267, article 8, section 41, is amended to read:&#10;46.23   Sec. 41.  REPEALER.  &#10;46.24    &#10;46.25   <del>(a)</del> Minnesota Statutes 2002, sections 353.33, subdivision  5b; and 490.11, are &#10;46.26   repealed on July 1, 2004.  &#10;46.27    &#10;46.28   <del>(b) Sections 3 and 19 are repealed on July 1, 2006.</del>  &#10;&#10;<a id="go.3.43.0"></a>46.29       Sec. 43. <ins><b>EARLY RETIREMENT INCENTIVE.</b></ins>&#10;46.30       <ins>Subdivision 1.</ins> <ins><b>Eligibility.</b></ins> <ins>An appointing authority in the executive or legislative </ins>&#10;46.31   <ins>branch of state government or the Board of Public Defense or the Minnesota Historical </ins>&#10;46.32   <ins>Society or the Minnesota State Colleges and Universities or any school district may offer </ins>&#10;46.33   <ins>the early retirement incentive in this section to an employee who: </ins>&#10;47.1    <ins>(1) has at least 15 years of allowable service in one or more of the funds listed in </ins>&#10;47.2    <ins>Minnesota Statutes, section 356.30, subdivision 3, or has at least five years of coverage by </ins>&#10;47.3    <ins>the individual retirement account plan governed by Minnesota Statutes, chapter 354B, and </ins>&#10;47.4    <ins>upon retirement is immediately eligible for a retirement annuity or benefit from one or </ins>&#10;47.5    <ins>more of these funds; and </ins>&#10;47.6    <ins>(2) terminates state or teaching service after the effective date of this section and </ins>&#10;47.7    <ins>before September 1, 2006. </ins>&#10;47.8        <ins>Subd. 2.</ins> <ins><b>Incentive.</b></ins> <ins>(a) For an employee eligible under subdivision 1, the employer </ins>&#10;47.9    <ins>may provide an amount up to $17,000, to be used: </ins>&#10;47.10   <ins>(1) for an employee who terminates state service after the effective date of this </ins>&#10;47.11   <ins>section and on or before July 15, 2006, for deposit in the employee's account in the health </ins>&#10;47.12   <ins>care savings plan established by Minnesota Statutes, section 352.98; or </ins>&#10;47.13   <ins>(2) for an employee who terminates state service after July 15, 2006, and before </ins>&#10;47.14   <ins>September 1, 2006: </ins>&#10;47.15   <ins>(i) notwithstanding Minnesota Statutes, section 352.01, subdivision 11, or 354.05, </ins>&#10;47.16   <ins>subdivision 13, whichever applies, for purchase of service credit for unperformed service </ins>&#10;47.17   <ins>sufficient to enable the employee to retire under Minnesota Statutes, section 352.116, </ins>&#10;47.18   <ins>subdivision 1, paragraph (b); 353.30; or 354.44, subdivision 6, paragraph (b), whichever </ins>&#10;47.19   <ins>applies; or </ins>&#10;47.20   <ins>(ii) for purchase of a lifetime annuity or annuity for a specific number of years from </ins>&#10;47.21   <ins>the state unclassified retirement program to provide additional benefits under Minnesota </ins>&#10;47.22   <ins>Statutes, section 352D.06, subdivision 1. </ins>&#10;47.23   <ins>(b) An employee is eligible for the payment under paragraph (a), clause (2), item </ins>&#10;47.24   <ins>(i), if the employee uses money from a deferred compensation account that, combined </ins>&#10;47.25   <ins>with the payment under paragraph (a), clause (2), item (i), would be sufficient to purchase </ins>&#10;47.26   <ins>enough service credit to qualify for retirement under Minnesota Statutes, section 352.116, </ins>&#10;47.27   <ins>subdivision 1, paragraph (b); 353.30, subdivision 1a; or 354.44, subdivision 6, paragraph </ins>&#10;47.28   <ins>(b), whichever applies. </ins>&#10;47.29   <ins>(c) The cost to purchase service credit under this section must be made in accordance </ins>&#10;47.30   <ins>with Minnesota Statutes, section 356.551.</ins>&#10;47.31       <ins>Subd. 3.</ins> <ins><b>Designation of positions; employer discretion.</b></ins> <ins>Before offering an </ins>&#10;47.32   <ins>incentive under this section, an appointing authority must be experiencing employee </ins>&#10;47.33   <ins>layoffs due to budget shortfalls or reorganization that would be offset by offering the </ins>&#10;47.34   <ins>incentive. The appointing authority must document that the incentive payment is equal </ins>&#10;47.35   <ins>to or less than the cost of the employee layoff. The appointing authority must designate </ins>&#10;47.36   <ins>the job classifications or positions within the job classifications that qualify for the </ins>&#10;48.1    <ins>incentive. The appointing authority may modify this designation at any time.  Designation </ins>&#10;48.2    <ins>of positions eligible for the incentive under this section, participation of individual </ins>&#10;48.3    <ins>employees, and the amount of the payment under this section are at the sole discretion of </ins>&#10;48.4    <ins>the appointing authority.  Unilateral implementation of this section by the employer is not </ins>&#10;48.5    <ins>an unfair labor practice under Minnesota Statutes, chapter 179A.</ins>&#10;&#10;<a id="go.3.44.0"></a>48.6        Sec. 44. <ins><b>PERA-GENERAL; PURCHASE OF SERVICE CREDIT FOR </b></ins>&#10;48.7    <ins><b>ILLINOIS MUNICIPAL RETIREMENT PLAN COVERED SERVICE.</b></ins>&#10;48.8    <ins>(a) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the </ins>&#10;48.9    <ins>contrary, a member of the general employees retirement plan of the Public Employees </ins>&#10;48.10   <ins>Retirement Association who left active employment covered by Minnesota Statutes, </ins>&#10;48.11   <ins>chapter 353, was employed in public employment covered by the Illinois municipal </ins>&#10;48.12   <ins>retirement plan, and returned to active Minnesota local government employment may </ins>&#10;48.13   <ins>purchase allowable service credit in the general employees retirement plan of the Public </ins>&#10;48.14   <ins>Employees Retirement Association for the period of service covered by the Illinois </ins>&#10;48.15   <ins>municipal retirement plan by authorizing the transfer of funds specified in paragraph (b) </ins>&#10;48.16   <ins>and by making the payment specified in paragraph (c).</ins>&#10;48.17   <ins>(b) If a person elects to obtain service credit under this section, the person shall </ins>&#10;48.18   <ins>authorize an institution-to-institution transfer of the person's account in the Illinois </ins>&#10;48.19   <ins>municipal retirement plan to the general employees retirement fund of the Public </ins>&#10;48.20   <ins>Employees Retirement Association.</ins>&#10;48.21   <ins>(c) If a person elects to obtain service credit under this section and authorizes an </ins>&#10;48.22   <ins>account transfer under paragraph (b), the person shall pay the balance of the prior service </ins>&#10;48.23   <ins>credit purchase payment calculated under Minnesota Statutes, section 356.551, in excess </ins>&#10;48.24   <ins>of the account transfer amount.</ins>&#10;48.25   <ins>(d) The election under this section must be made in writing on a form prescribed </ins>&#10;48.26   <ins>by the executive director of the Public Employees Retirement Association. The person </ins>&#10;48.27   <ins>making this election also must waive any retirement annuity or benefit from the Illinois </ins>&#10;48.28   <ins>municipal retirement fund and must provide any reasonable documentation of the person's </ins>&#10;48.29   <ins>compliance with qualification requirements to the executive director of the Public </ins>&#10;48.30   <ins>Employees Retirement Association that is requested by the director.</ins>&#10;&#10;<a id="go.3.45.0"></a>48.31       Sec. 45. <ins><b>TEMPORARY PROVISION; TRANSFER OF CERTAIN DEFERRED </b></ins>&#10;48.32   <ins><b>COMPENSATION CONTRIBUTIONS.</b></ins>&#10;48.33   <ins>Any amount contributed by a municipality or an independent nonprofit firefighting </ins>&#10;48.34   <ins>corporation to the state deferred compensation program under Minnesota Statutes, section </ins>&#10;49.1    <ins>352.96, for or on behalf of a volunteer or emergency on-call firefighter for whom no other </ins>&#10;49.2    <ins>retirement coverage is provided for that firefighting service and for whom the deferred </ins>&#10;49.3    <ins>compensation program contributions were made to avoid providing retirement coverage </ins>&#10;49.4    <ins>under the federal old age, survivors, and disability insurance program and as such were </ins>&#10;49.5    <ins>in error, if federal law so permits, may be transferred to the public employees defined </ins>&#10;49.6    <ins>contribution plan for subsequent deposit in the individual account of the applicable </ins>&#10;49.7    <ins>firefighter.</ins>&#10;&#10;<a id="go.3.46.0"></a>49.8        Sec. 46. <ins><b> REPEALER.</b></ins>&#10;49.9    <ins>Minnesota Statutes 2004, section 43A.34, subdivision 1,</ins><ins> is repealed.</ins>&#10;&#10;<a id="go.3.47.0"></a>49.10       Sec. 47. <ins><b>EFFECTIVE DATE.</b></ins>&#10;49.11   <ins>(a) Sections 1 and 46 are effective the day following final enactment.</ins>&#10;49.12   <ins>(b) Sections 2 to 11, 13 to 31, 36 to 38, and 42 are effective July 1, 2006.</ins>&#10;49.13   <ins>(c) Section 39 is effective the first day of the first payroll period next following </ins>&#10;49.14   <ins>final enactment.</ins>&#10;49.15   <ins>(d) Sections 3, 4, 21, 22, 37, and 38 are not intended to increase, modify, impair, </ins>&#10;49.16   <ins>or diminish the benefit entitlements specified in the sections of Minnesota Statutes being </ins>&#10;49.17   <ins>amended.  If the executive director of the Minnesota State Retirement System, the Public </ins>&#10;49.18   <ins>Employees Retirement Association, the Teachers Retirement Association, or a first </ins>&#10;49.19   <ins>class city teacher retirement fund association, whichever is applicable, determines that </ins>&#10;49.20   <ins>any provision of those sections does increase, modify, impair, or diminish the benefit </ins>&#10;49.21   <ins>entitlements as reflected in applicable law just prior to the effective date of this section, </ins>&#10;49.22   <ins>the applicable executive director shall certify that determination and a recommendation </ins>&#10;49.23   <ins>as to the required legislative correction to the chairs of the Legislative Commission on </ins>&#10;49.24   <ins>Pensions and Retirement, the house Governmental Operations and Veterans Affairs Policy </ins>&#10;49.25   <ins>Committee, the senate State and Local Governmental Operations Committee, and the </ins>&#10;49.26   <ins>executive director of the Legislative Commission on Pensions and Retirement.</ins>&#10;49.27   <ins>(e) Sections 12, 32 to 35, 40, 41, and 45 are effective the day following final </ins>&#10;49.28   <ins>enactment. </ins>&#10;&#10;<a id="go.4.0.0"></a>49.29                                          <b>ARTICLE 4</b>&#10;49.30                               <b>PERA-P&amp;F RETIREMENT PLAN CHANGES</b>&#10;&#10;<a id="go.4.1.0"></a>49.31       Section 1. Minnesota Statutes 2005 Supplement, section 353.656, subdivision 1, &#10;49.32   is amended to read:&#10;50.1        Subdivision 1. <b>In line of duty; computation of benefits.</b> <ins>(a) </ins>A member of the &#10;50.2    police and fire plan who<ins>:</ins>&#10;50.3    <ins>(1) has not met the requirements for a retirement annuity under section 353.651, </ins>&#10;50.4    <ins>subdivision 1, or </ins>&#10;50.5    <ins>(2) has met the requirements for a retirement annuity under section 353.651, </ins>&#10;50.6    <ins>subdivision 1, but who does not have 20 years of credited service; and who </ins>becomes &#10;50.7    disabled and physically unfit to perform duties as a police officer, firefighter, or paramedic &#10;50.8    as defined under section 353.64, subdivision 10, as a direct result of an injury, sickness, or &#10;50.9    other disability incurred in or arising out of any act of duty, which has or is expected to &#10;50.10   render the member physically or mentally unable to perform the duties as a police officer, &#10;50.11   firefighter, or paramedic as defined under section 353.64, subdivision 10, for a period of at &#10;50.12   least one year, shall receive disability benefits during the period of such disability. &#10;50.13   <ins>(b) </ins>The benefits must be in an amount equal to 60 percent of the "average salary" as &#10;50.14   defined in section 353.01, subdivision 17a, plus an additional percent specified in section &#10;50.15   356.315, subdivision 6, of that average salary for each year of service in excess of 20 &#10;50.16   years. If the disability under this subdivision occurs before the member has at least five &#10;50.17   years of allowable service credit in the police and fire plan, the disability benefit must be &#10;50.18   computed on the "average salary" from which deductions were made for contribution to &#10;50.19   the police and fire fund.&#10;&#10;<a id="go.4.2.0"></a>50.20       Sec. 2. Minnesota Statutes 2004, section 353.656, subdivision 3, is amended to read:&#10;50.21       Subd. 3. <b>Nonduty disability benefit.</b> <ins>(a) </ins>Any member of the police and fire plan &#10;50.22   who<ins>:</ins>&#10;50.23   <ins>(1) has not met the requirements for a retirement annuity under section 353.651, </ins>&#10;50.24   <ins>subdivision 1, or</ins>&#10;50.25   <ins>(2) has met the requirements for a retirement annuity under section 353.651, </ins>&#10;50.26   <ins>subdivision 1, but who does not have 15 years of credited service; and who </ins>becomes &#10;50.27   disabled after not less than one year of allowable service because of sickness or injury &#10;50.28   occurring while not on duty as a police officer, firefighter, or paramedic as defined under &#10;50.29   section  353.64, subdivision 10, and by reason of that sickness or injury the member has &#10;50.30   been or is expected to be unable to perform the duties as a police officer, firefighter, or &#10;50.31   paramedic as defined under section  353.64, subdivision 10, for a period of at least one &#10;50.32   year, is entitled to receive a disability benefit. &#10;50.33   <ins>(b) </ins>The benefit must be paid in the same manner as if the benefit were paid under &#10;50.34   section  353.651. If a disability under this subdivision occurs after one but in less than 15 &#10;50.35   years of allowable service, the disability benefit must be the same as though the member &#10;51.1    had at least 15 years service. For a member who is employed as a full-time firefighter &#10;51.2    by the Department of Military Affairs of the state of Minnesota, allowable service as a &#10;51.3    full-time state Military Affairs Department firefighter credited by the Minnesota State &#10;51.4    Retirement System may be used in meeting the minimum allowable service requirement &#10;51.5    of this subdivision. &#10;&#10;<a id="go.4.3.0"></a>51.6        Sec. 3. Minnesota Statutes 2004, section 353.656, subdivision 6a, is amended to read:&#10;51.7        Subd. 6a. <b>Disability survivor benefits.</b> If a member who is receiving a disability &#10;51.8    benefit under subdivision 1 or 3:&#10;51.9    <del>(a)</del> <ins>(1) </ins>dies before attaining <ins>the </ins>age<del> 65</del><ins> required for receipt of a retirement annuity </ins>&#10;51.10   <ins>under section 353.651, subdivision 1,</ins> or within five years of the effective date of the &#10;51.11   disability, whichever is later, the surviving spouse shall receive a survivor benefit under &#10;51.12   section  353.657, subdivision 2 or 2a, unless the surviving spouse elected to receive a &#10;51.13   refund under section  353.32, subdivision 1. The joint and survivor optional annuity under &#10;51.14   subdivision 2a is based on the minimum disability benefit under subdivision 1 or 3, or the &#10;51.15   deceased member's allowable service, whichever is greater<del>.</del><ins>;</ins> &#10;51.16   <del>(b)</del> <ins>(2) </ins>is living at <ins>the </ins>age<del> 65</del><ins> required for receipt of a retirement annuity under </ins>&#10;51.17   <ins>section 353.651, subdivision 1,</ins> or five years after the effective date of the disability, &#10;51.18   whichever is later, the member may continue to receive a normal disability benefit, &#10;51.19   or the member may elect a joint and survivor optional annuity under section  353.30. &#10;51.20   The optional annuity is based on the minimum disability benefit under subdivision 1 or &#10;51.21   3, or the member's allowable service, whichever is greater. The election of this joint &#10;51.22   and survivor annuity must occur within 90 days of <ins>the </ins>age<del> 65</del><ins> required for receipt of a </ins>&#10;51.23   <ins>retirement annuity under section 353.651, subdivision 1,</ins> or the five-year anniversary of the &#10;51.24   effective date of the disability benefit, whichever is later. The optional annuity takes effect &#10;51.25   the first of the month following the month in which the person attains <ins>the </ins>age<del> 65</del><ins> required </ins>&#10;51.26   <ins>for receipt of a retirement annuity under section 353.651, subdivision 1,</ins> or reaches the &#10;51.27   five-year anniversary of the effective date of the disability benefit, whichever is later<del>.</del><ins>; or</ins> &#10;51.28   <del>(c) if there is</del> <ins>(3) </ins><ins>has </ins>a dependent child or children under <del>paragraph (a) or (b)</del><ins> clause </ins>&#10;51.29   <ins>(1) or (2)</ins>, the association shall grant a dependent child benefit under section  353.657, &#10;51.30   subdivision 3. &#10;&#10;<a id="go.4.4.0"></a>51.31       Sec. 4. <ins><b>EFFECTIVE DATE.</b></ins>&#10;51.32   <ins>Sections 1 to 3 are effective July 1, 2006.</ins>&#10;&#10;<a id="go.5.0.0"></a>52.1                                           <b>ARTICLE 5</b>&#10;52.2                            <b>PRIVATIZATION RETIREMENT COVERAGE CHANGE</b>&#10;&#10;<a id="go.5.1.0"></a>52.3        Section 1. Minnesota Statutes 2004, section 352F.04, is amended to read:&#10;52.4    <b>352F.04 AUGMENTATION INTEREST </b><del><b>RATE</b></del><b> </b><ins><b>RATES</b></ins><b> FOR TERMINATED </b>&#10;52.5    <del><b>UNIVERSITY HOSPITAL</b></del><b> </b><ins><b>PRIVATIZED</b></ins><b> EMPLOYEES.</b>&#10;52.6        <ins>Subdivision 1.</ins> <ins><b>Enhanced augmentation rates.</b></ins> <ins>(a) </ins>The deferred annuity of a &#10;52.7    terminated hospital employee <ins>who attained that status prior to the effective date of this </ins>&#10;52.8    <ins>section </ins>is subject to augmentation <del>in accordance with</del> <ins>under </ins>Minnesota Statutes 1994, &#10;52.9    section  352.72, subdivision 2, except that the rate of <del>interest for this purpose</del> <ins>augmentation </ins>&#10;52.10   is 5.5 percent compounded annually until January 1 following the year in which <del>such</del> <ins>the </ins>&#10;52.11   person attains age 55. From that date to the effective date of retirement, the <ins>augmentation </ins>&#10;52.12   rate is 7.5 percent<ins> compounded annually</ins>. <del>These</del>&#10;52.13   <ins>(b) If a terminated hospital employee attained that status on or after the effective date </ins>&#10;52.14   <ins>of this section, the augmentation rate is four percent compounded annually until January </ins>&#10;52.15   <ins>1, following the year in which the person attains age 55. From that date to the effective </ins>&#10;52.16   <ins>date of retirement, the augmentation rate is six percent compounded annually.</ins> &#10;52.17       <ins>Subd. 2.</ins> <ins><b>Exceptions.</b></ins> <ins>The</ins> increased augmentation rates <del>are no longer applicable for </del>&#10;52.18   <del>any time after</del> <ins>specified in subdivision 1 do not apply if </ins>the terminated <del>hospital employee </del>&#10;52.19   <del>or Academic Health Center</del> employee<ins>:</ins>&#10;52.20   <ins>(1)</ins> becomes covered again by a retirement <del>fund</del> <ins>plan </ins>enumerated in section  356.30, &#10;52.21   subdivision 3<del>. These increased deferred annuity augmentation rates do not apply to a </del>&#10;52.22   <del>terminated transferred hospital employee or Academic Health Center employee who</del><ins>; or</ins>&#10;52.23   <ins>(2)</ins> begins receipt of a retirement annuity while employed by <del>Fairview</del><ins> the employer </ins>&#10;52.24   <ins>which assumed operations of the medical facility or other public employing unit or </ins>&#10;52.25   <ins>purchased the medical facility or other public employing unit</ins>. &#10;&#10;<a id="go.5.2.0"></a>52.26       Sec. 2. Minnesota Statutes 2005 Supplement, section 353F.02, subdivision 4, is &#10;52.27   amended to read:&#10;52.28       Subd. 4. <b>Medical facility.</b> "Medical facility" means:&#10;52.29   (1) Bridges Medical Services;&#10;52.30   (2) <ins>the City of Cannon Falls Hospital;</ins>&#10;52.31   <ins>(3) Clearwater County Memorial Hospital doing business as Clearwater Health </ins>&#10;52.32   <ins>Services in Bagley;</ins>&#10;52.33   <ins>(4) the Dassel Lakeside Community Home;</ins>&#10;52.34   <ins>(5) </ins>the Fair Oaks Lodge, Wadena;&#10;53.1    <del>(3)</del><ins> (6)</ins> the Glencoe Area Health Center;&#10;53.2    <del>(4)</del><ins> (7)</ins> the Hutchinson Area Health Care;&#10;53.3    <del>(5)</del><ins> (8)</ins> the Kanabec Hospital;&#10;53.4    <del>(6)</del><ins> (9)</ins> the Luverne Public Hospital;&#10;53.5    <del>(7)</del><ins> (10)</ins> the Northfield Hospital;&#10;53.6    <del>(8)</del><ins> (11)</ins> the RenVilla Nursing Home;&#10;53.7    <del>(9)</del><ins> (12)</ins> the Renville County Hospital in Olivia;&#10;53.8    <del>(10)</del><ins> (13)</ins> the St. Peter Community Healthcare Center; and&#10;53.9    <del>(11)</del><ins> (14)</ins> the Waconia-Ridgeview Medical Center.&#10;&#10;<a id="go.5.3.0"></a>53.10       Sec. 3. Minnesota Statutes 2004, section 353F.04, is amended to read:&#10;53.11   <b>353F.04 AUGMENTATION INTEREST </b><del><b>RATE</b></del><b> </b><ins><b>RATES</b></ins><b> FOR TERMINATED </b>&#10;53.12   <b>MEDICAL </b><ins><b>OR OTHER PUBLIC EMPLOYING UNIT</b></ins><b> FACILITY EMPLOYEES.</b>&#10;53.13       <ins>Subdivision 1.</ins> <ins><b>Enhanced augmentation rates.</b></ins> <ins>(a) </ins>The deferred annuity of &#10;53.14   a terminated medical facility or other public employing unit employee is subject to &#10;53.15   augmentation <del>in accordance with</del> <ins>under </ins>section  353.71, subdivision 2, of the edition of &#10;53.16   Minnesota Statutes published in the year in which the privatization occurred, except that &#10;53.17   the rate of <del>interest for this purpose</del> <ins>augmentation </ins>is <ins> as specified in paragraph (b) or (c), </ins>&#10;53.18   <ins>whichever is applicable.</ins>&#10;53.19   <ins>(b) This paragraph applies if the legislation adding the medical facility or other </ins>&#10;53.20   <ins>employing unit to section 353F.02, subdivision 4 or 5, as applicable, was enacted before </ins>&#10;53.21   <ins>July 26, 2005, and became effective before January 1, 2007. For a terminated medical </ins>&#10;53.22   <ins>facility or other public employing unit employee, the augmentation rate is </ins>5.5 percent &#10;53.23   compounded annually until January 1 following the year in which <del>such</del> <ins>the </ins>person attains &#10;53.24   age 55. From that date to the effective date of retirement, the <ins>augmentation </ins>rate is 7.5 &#10;53.25   percent<ins> compounded annually</ins>. <del>These</del>&#10;53.26   <ins>(c) If paragraph (b) is not applicable, the augmentation rate is four percent </ins>&#10;53.27   <ins>compounded annually until January 1, following the year in which the person attains age </ins>&#10;53.28   <ins>55. From that date to the effective date of retirement, the augmentation rate is six percent </ins>&#10;53.29   <ins>compounded annually.</ins> &#10;53.30       <ins>Subd. 2.</ins> <ins><b>Exceptions.</b></ins> <ins>The</ins> increased augmentation rates <del>are no longer applicable for </del>&#10;53.31   <del>any time after</del> <ins>specified in subdivision 1 do not apply if </ins>the terminated medical facility &#10;53.32   or other public employing unit employee<ins>:</ins>&#10;53.33   <ins>(1)</ins> becomes covered again by a retirement <del>fund</del> <ins>plan </ins>enumerated in section  356.30, &#10;53.34   subdivision 3<del>. These increased deferred annuity augmentation rates do not apply to a </del>&#10;53.35   <del>terminated transferred medical facility or other public employing unit employee who</del><ins>; or</ins>&#10;54.1    <ins>(2)</ins> begins receipt of a retirement annuity while employed by the employer which &#10;54.2    assumed operations of the medical facility or other public employing unit or purchased the &#10;54.3    medical facility or other public employing unit.&#10;&#10;<a id="go.5.4.0"></a>54.4        Sec. 4. Laws 2005, First Special Session chapter 8, article 6, section 4, is amended to &#10;54.5    read:&#10;54.6        Sec. 4. <b>EFFECTIVE DATE.</b>&#10;54.7    (a) Section 1, relating to Bridges Medical Services, is effective upon the later of:&#10;54.8    (1) the day after the governing body of the city of Ada and its chief clerical officer &#10;54.9    timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions &#10;54.10   2 and 3; and &#10;54.11   (2) the first day of the month next following certification to the governing body of &#10;54.12   the city of Ada by the executive director of the Public Employees Retirement Association &#10;54.13   that the actuarial accrued liability of the special benefit coverage proposed for extension to &#10;54.14   the privatized Bridges Medical Services employees under section 1 does not exceed the &#10;54.15   actuarial gain otherwise to be accrued by the Public Employees Retirement Association, as &#10;54.16   calculated by the consulting actuary retained under Minnesota Statutes, section 356.214.&#10;54.17   (b) Section 1, relating to the Hutchinson Area Health Care, is effective upon the &#10;54.18   later of:&#10;54.19   (1) the day after the governing body of the city of Hutchinson and its chief clerical &#10;54.20   officer timely complete their compliance with Minnesota Statutes, section 645.021, &#10;54.21   subdivisions 2 and 3<ins>, except that the certificate of approval must be filed before January 1, </ins>&#10;54.22   <ins>2008</ins>; and &#10;54.23   (2) the first day of the month next following certification to the governing body of &#10;54.24   the city of Hutchinson by the executive director of the Public Employees Retirement &#10;54.25   Association that the actuarial accrued liability of the special benefit coverage proposed &#10;54.26   for extension to the privatized Hutchinson Area Health Care employees under section &#10;54.27   1 does not exceed the actuarial gain otherwise to be accrued by the Public Employees &#10;54.28   Retirement Association, as calculated by the consulting actuary retained <del>by the Legislative </del>&#10;54.29   <del>Commission on Pensions and Retirement</del><ins> under Minnesota Statutes, section 356.214</ins>.&#10;54.30   (c) Section 1, relating to the Northfield Hospital, is effective upon the later of:&#10;54.31   (1) the day after the governing body of the city of Northfield and its chief clerical &#10;54.32   officer timely complete their compliance with Minnesota Statutes, section 645.021, &#10;54.33   subdivisions 2 and 3; and &#10;54.34   (2) the first day of the month next following certification to the governing body &#10;54.35   of the city of Northfield by the executive director of the Public Employees Retirement &#10;55.1    Association that the actuarial accrued liability of the special benefit coverage proposed &#10;55.2    for extension to the privatized Northfield Hospital employees under section 1 does not &#10;55.3    exceed the actuarial gain otherwise to be accrued by the Public Employees Retirement &#10;55.4    Association, as calculated by the consulting actuary retained <del>by the Legislative </del>&#10;55.5    <del>Commission on Pensions and Retirement</del><ins> under Minnesota Statutes, section 356.214</ins>.&#10;55.6    (d) The cost of the actuarial calculations must be borne by the facility, the city in &#10;55.7    which the facility is located, or the purchaser of the facility.&#10;55.8    (e) If the required actions in paragraphs (a), (b), or (c) and (d) occur, section 1 &#10;55.9    applies retroactively to the date of privatization.&#10;55.10   (f) Section 3 is effective the day following final enactment.&#10;55.11   (g) Section 2 is effective the day following final enactment and applies to &#10;55.12   privatizations occurring on or after the effective date.&#10;&#10;<a id="go.5.5.0"></a>55.13       Sec. 5. <ins><b>EFFECTIVE DATE.</b></ins>&#10;55.14   <ins>(a) Sections 1, 3, and 4 are effective the day following final enactment and section 3 </ins>&#10;55.15   <ins>has effect retroactively from July 25, 2005.</ins>&#10;55.16   <ins>(b) Section 2 with respect to the Cannon Falls Hospital District is effective upon the </ins>&#10;55.17   <ins>latter of:</ins>&#10;55.18   <ins>(1) the day after the governing body of the Cannon Falls Hospital District and its </ins>&#10;55.19   <ins>chief clerical officer meet the requirements under Minnesota Statutes, section 645.021, </ins>&#10;55.20   <ins>subdivisions 2 and 3; and</ins>&#10;55.21   <ins>(2) the first day of the month following certification to the Cannon Falls Hospital </ins>&#10;55.22   <ins>District by the executive director of the Public Employees Retirement Association that the </ins>&#10;55.23   <ins>actuarial accrued liability of the special benefit coverage proposed for extension to the </ins>&#10;55.24   <ins>privatized City of Cannon Falls Hospital employees under section 1 does not exceed the </ins>&#10;55.25   <ins>actuarial gain otherwise to be accrued by the Public Employees Retirement Association, as </ins>&#10;55.26   <ins>calculated by the consulting actuary retained under Minnesota Statutes, section 356.214. </ins>&#10;55.27   <ins>The cost of the actuarial calculations must be borne by the current employer or by the </ins>&#10;55.28   <ins>entity which is the employer following the privatization.</ins>&#10;55.29   <ins>(c) Section 2, with respect to Clearwater County Memorial Hospital, is effective </ins>&#10;55.30   <ins>upon the latter of:</ins>&#10;55.31   <ins>(1) the day after the governing body of Clearwater County and its chief clerical </ins>&#10;55.32   <ins>officer meet the requirements under Minnesota Statutes, section 645.021, subdivisions 2 </ins>&#10;55.33   <ins>and 3; and</ins>&#10;55.34   <ins>(2) the first day of the month following certification to Clearwater County by the </ins>&#10;55.35   <ins>executive director of the Public Employees Retirement Association that the actuarial </ins>&#10;56.1    <ins>accrued liability of the special benefit coverage proposed for extension to the privatized </ins>&#10;56.2    <ins>Clearwater Health Services employees under section 2 does not exceed the actuarial gain </ins>&#10;56.3    <ins>otherwise to be accrued by the Public Employees Retirement Association, as calculated by </ins>&#10;56.4    <ins>the consulting actuary retained under Minnesota Statutes, section 356.214. The cost of </ins>&#10;56.5    <ins>the actuarial calculations must be borne by the current employer or by the entity which is </ins>&#10;56.6    <ins>the employer following the privatization.</ins>&#10;56.7    <ins>(d) Section 2 with respect to the Dassel Lakeside Community Home is effective </ins>&#10;56.8    <ins>upon the latter of:</ins>&#10;56.9    <ins>(1) the day after the governing body of the city of Dassel and its chief clerical officer </ins>&#10;56.10   <ins>timely complete compliance with Minnesota Statutes, section 645.021, subdivisions 2 </ins>&#10;56.11   <ins>and 3; and</ins>&#10;56.12   <ins>(2) the first day of the month next following certification to the Dassel City </ins>&#10;56.13   <ins>Council by the executive director of the Public Employees Retirement Association that </ins>&#10;56.14   <ins>the actuarial accrued liability of the special benefit coverage proposed for extension to </ins>&#10;56.15   <ins>the privatized Dassel Lakeside Community Home employees under section 2 does not </ins>&#10;56.16   <ins>exceed the actuarial gain otherwise to be accrued by the Public Employees Retirement </ins>&#10;56.17   <ins>Association, as calculated by the consulting actuary retained under Minnesota Statutes, </ins>&#10;56.18   <ins>section 356.214. The cost of the actuarial calculations must be borne by the city of Dassel </ins>&#10;56.19   <ins>or by the entity which is the employer following the privatization.</ins>&#10;&#10;<a id="go.6.0.0"></a>56.20                                          <b>ARTICLE 6</b>&#10;56.21                               <b>SOCIAL SECURITY COVERAGE CHANGES</b>&#10;&#10;<a id="go.6.1.0"></a>56.22       Section 1. Minnesota Statutes 2004, section 355.01, subdivision 3g, is amended to read:&#10;56.23       Subd. 3g. <b>Local governmental subdivision.</b> "Local governmental subdivision" &#10;56.24   means:&#10;56.25   (1) a political subdivision as defined in section 218(b) of the Social Security Act;&#10;56.26   (2) an instrumentality of the state;&#10;56.27   (3) an instrumentality of one or more of the political subdivisions of the state<del>, </del>&#10;56.28   <del>including the League of Minnesota Cities</del>;&#10;56.29   (4) an instrumentality of the state and one or more of its political subdivisions;&#10;56.30   (5) a governmental subdivision as defined in section  353.01, subdivision 6; and &#10;56.31   (6) any instrumentality established under a joint powers agreement under section  &#10;56.32   471.59 wherein the instrumentality is responsible for the employment and the payment of &#10;56.33   the salaries of the employees of the instrumentality. &#10;&#10;<a id="go.6.2.0"></a>56.34       Sec. 2. Minnesota Statutes 2004, section 355.02, subdivision 1, is amended to read:&#10;57.1        Subdivision 1. <b>General authority.</b> (a) The director, with the approval of the &#10;57.2    governor, is hereby authorized to enter into an agreement on behalf of the state<ins>, its political </ins>&#10;57.3    <ins>subdivisions, and its other governmental employers, </ins> with the federal Secretary of Health &#10;57.4    and Human Services, consistent with the terms and provisions of this chapter, for the &#10;57.5    purpose of extending the benefits of the federal old age, survivors, and disability insurance &#10;57.6    system to employees of the state or any political subdivision thereof <ins>who hold positions </ins>&#10;57.7    <ins>covered by a retirement system </ins>with respect to services specified in the agreement which &#10;57.8    constitute "employment<del>,</del><ins>.</ins>" <del>whenever so specifically authorized by the statutory provisions </del>&#10;57.9    <del>of this state pertaining to any coverage group of such employees to which the agreement </del>&#10;57.10   <del>may become applicable under the Social Security Act.</del>&#10;57.11   (b) <del>Under this specific authorization</del> The agreement may contain those provisions &#10;57.12   relating to coverage, benefits, contributions, effective date, modification and termination &#10;57.13   of the agreement, administration, and other appropriate provisions as the director and the &#10;57.14   federal Secretary of Health and Human Services shall agree upon, but, except as may be &#10;57.15   otherwise required by or under the Social Security Act as to the services to be covered, &#10;57.16   such agreement must provide in effect that:&#10;57.17   (1) benefits will be provided for employees whose services are covered by the &#10;57.18   agreement (and their dependents and survivors) on the same basis as though those services &#10;57.19   constituted employment within the meaning of title II of the Social Security Act;&#10;57.20   (2) the state or other employer will pay to the federal Secretary of the Treasury, at &#10;57.21   such time or times as may be prescribed under the Social Security Act, contributions &#10;57.22   with respect to wages, equal to the sum of the taxes which would be imposed by the &#10;57.23   Federal Insurance Contributions Act if the services covered by the agreement constituted &#10;57.24   employment within the meaning of that act;&#10;57.25   (3) the agreement is effective with respect to services in employment covered by the &#10;57.26   agreement performed after a date specified therein; and&#10;57.27   (4) all services which constitute employment and are performed in the employ of &#10;57.28   the state or any of its political subdivisions by employees thereof, may be covered by the &#10;57.29   agreement <del>whenever so specifically authorized by the statutory provisions of this state </del>&#10;57.30   <del>pertaining to any coverage group of such employees to which the agreement may become </del>&#10;57.31   <del>applicable under the Social Security Act</del>.&#10;&#10;<a id="go.6.3.0"></a>57.32       Sec. 3. Minnesota Statutes 2004, section 355.02, subdivision 3, is amended to read:&#10;57.33       Subd. 3. <b>Groups covered by Social Security.</b> <ins>(a) </ins>The following groups <ins>having </ins>&#10;57.34   <ins>coverage under a retirement plan in section 356.30, subdivision 3, except clauses (4) and </ins>&#10;58.1    <ins>(8) </ins>must be covered by an agreement or a modification to an agreement between the &#10;58.2    director and the federal Secretary of Health and Human Services:&#10;58.3    (1) constitutional officers;&#10;58.4    (2) Duluth teachers;&#10;58.5    (3) educational employees;&#10;58.6    (4) higher education employees;&#10;58.7    (5) hospital employees;&#10;58.8    (6) judges;&#10;58.9    (7) legislators;&#10;58.10   (8) Minneapolis teachers;&#10;58.11   (9) public employees;&#10;58.12   (10) St. Paul teachers;<ins> and</ins>&#10;58.13   (11) <del>special authority or district employees; and</del>&#10;58.14   <del>(12)</del> state employees.&#10;58.15   <ins>(b) The following groups must be covered prospectively following the referendum </ins>&#10;58.16   <ins>in subdivision 4 and the modification to the state Social Security agreement under </ins>&#10;58.17   <ins>subdivision 1:</ins>&#10;58.18   <ins>(1) special authority or district employees in positions covered by a retirement plan </ins>&#10;58.19   <ins>provided by the employer; and</ins>&#10;58.20   <ins>(2) local elected officials of a local governmental subdivision or of a special authority </ins>&#10;58.21   <ins>or district holding positions covered by the defined contribution plan under chapter 353D.</ins>&#10;58.22   <ins>(c) Each local governmental subdivision or special authority or district desiring </ins>&#10;58.23   <ins>inclusion in the state Social Security agreement for groups covered by paragraph (b) must </ins>&#10;58.24   <ins>request such coverage by submitting a formal resolution to the director, including therein </ins>&#10;58.25   <ins>the desired starting date for Social Security coverage.</ins>&#10;58.26   <ins>(d) For purposes of paragraph (b), clause (2), the defined contribution plan of the </ins>&#10;58.27   <ins>Public Employees Retirement Association is considered a separate retirement system with </ins>&#10;58.28   <ins>respect to each local governmental subdivision or special authority or district, and the </ins>&#10;58.29   <ins>elected officials in a local governmental subdivision or in a special authority or district </ins>&#10;58.30   <ins>must be treated separately and independently from the other governmental subdivisions.</ins>&#10;&#10;<a id="go.6.4.0"></a>58.31       Sec. 4. Minnesota Statutes 2004, section 355.02, is amended by adding a subdivision &#10;58.32   to read:&#10;58.33       <ins>Subd. 4.</ins> <ins><b>Referendum.</b></ins> <ins>The director shall authorize and supervise a referendum </ins>&#10;58.34   <ins>under section 218(d)(6)(C) of the Social Security Act to be held on the date or dates set by </ins>&#10;58.35   <ins>the local governmental subdivision or by the special authority or district desiring inclusion </ins>&#10;59.1    <ins>under subdivision 3, paragraph (b). The referendum must permit each eligible employee </ins>&#10;59.2    <ins>the opportunity to elect Social Security coverage. The notice of referendum required by </ins>&#10;59.3    <ins>section 218(d) of the Social Security Act must contain a statement sufficient to inform </ins>&#10;59.4    <ins>the person of the rights which accrue under the Social Security Act and the employee </ins>&#10;59.5    <ins>contribution rates applicable to the program. The cost of the referendum must be borne </ins>&#10;59.6    <ins>by the governmental subdivision. The director, on receiving satisfactory evidence that </ins>&#10;59.7    <ins>the conditions required by section 218 of the Social Security Act have been met, must </ins>&#10;59.8    <ins>so certify to the Secretary of Health and Human Services.</ins>&#10;&#10;<a id="go.6.5.0"></a>59.9        Sec. 5. Minnesota Statutes 2004, section 355.02, is amended by adding a subdivision &#10;59.10   to read:&#10;59.11       <ins>Subd. 5.</ins> <ins><b>Retroactive Social Security coverage.</b></ins> <ins>An employee or elected official </ins>&#10;59.12   <ins>who elects Social Security coverage under subdivision 4 may obtain retroactive coverage </ins>&#10;59.13   <ins>for the period specified in the modification of the agreement if the individual is employed </ins>&#10;59.14   <ins>by the local governmental subdivision or by the special authority or district on the date of </ins>&#10;59.15   <ins>the modification of the agreement. The employee or elected official must pay an amount </ins>&#10;59.16   <ins>equal to the taxes which would have been imposed on the person by the Federal Insurance </ins>&#10;59.17   <ins>Contributions Act had the service been covered at the time performed. The employing </ins>&#10;59.18   <ins>local governmental subdivision or special authority or district must pay the necessary </ins>&#10;59.19   <ins>employer contributions for the retroactive period. Nothing in this section shall require an </ins>&#10;59.20   <ins>employee or elected official to elect retroactive Social Security coverage.</ins>&#10;&#10;<a id="go.6.6.0"></a>59.21       Sec. 6. <ins><b>[355.095] OPTIONAL MEDICARE COVERAGE FOR CERTAIN </b></ins>&#10;59.22   <ins><b>PUBLIC EMPLOYEES.</b></ins>&#10;59.23       <ins>Subdivision 1.</ins> <ins><b>Agreement.</b></ins> <ins>(a) The director, on behalf of the state, its political </ins>&#10;59.24   <ins>subdivisions, and its other governmental employers, is authorized to enter into an </ins>&#10;59.25   <ins>agreement with the Secretary of Health and Human Services to extend the provisions of </ins>&#10;59.26   <ins>United States Code, title 42, section 426, 426-1, and 1395c, to the employees in paragraph </ins>&#10;59.27   <ins>(b) who meet the requirements of United States Code, title 42, section 418(v)(2) and who </ins>&#10;59.28   <ins>do not have coverage by the federal old age, survivors, and disability insurance program </ins>&#10;59.29   <ins>for that employment under any previous modification of the agreement or previous </ins>&#10;59.30   <ins>Medicare referendum.</ins>&#10;59.31   <ins>(b) The applicable employees are:</ins>&#10;59.32   <ins>(1) employees who are members of one of the retirement plans in section 356.30, </ins>&#10;59.33   <ins>subdivision 3, except clauses (4) and (8), based on continuous employment since March </ins>&#10;59.34   <ins>31, 1986; and</ins>&#10;60.1    <ins>(2) employees of a special authority or district who have been continuously </ins>&#10;60.2    <ins>employed by the special authority or district since March 31, 1986.</ins>&#10;60.3        <ins>Subd. 2.</ins> <ins><b>Referendum.</b></ins> <ins>(a) Each local governmental subdivision or special authority </ins>&#10;60.4    <ins>or district desiring inclusion in the state Social Security agreement under subdivision 1 </ins>&#10;60.5    <ins>must request such coverage by submitting a formal resolution to the director, including </ins>&#10;60.6    <ins>therein the desired starting date for Social Security coverage.</ins>&#10;60.7    <ins>(b) The director shall authorize a referendum on the question of extending the </ins>&#10;60.8    <ins>provisions of United States Code, title 42, sections 426, 426-1, and 1395c. The director </ins>&#10;60.9    <ins>shall supervise the referendum in accordance with the requirements of United States Code, </ins>&#10;60.10   <ins>title 42, section 418, on the date or dates set. The cost of such referendum must be borne by </ins>&#10;60.11   <ins>the requesting retirement plan, or the requesting special authority or district. The notice of </ins>&#10;60.12   <ins>the referendum provided to each eligible employee must contain a statement sufficient to </ins>&#10;60.13   <ins>inform the person of the rights available as an employee in Medicare qualified government </ins>&#10;60.14   <ins>employment and the employee contribution rates applicable to the program. The </ins>&#10;60.15   <ins>referendum must permit each eligible employee the opportunity to vote in such referendum </ins>&#10;60.16   <ins>in accordance with the requirements in the Social Security Act. The director, on receiving </ins>&#10;60.17   <ins>satisfactory evidence that the conditions specified in United States Code, title 42, section </ins>&#10;60.18   <ins>418(d)(7) have been met, must so certify to the Secretary of Health and Human Services.</ins>&#10;60.19       <ins>Subd. 3.</ins> <ins><b>Contributions.</b></ins> <ins>Employers must pay the necessary employer contributions </ins>&#10;60.20   <ins>and make the necessary deductions from salary for employees who elect to participate in </ins>&#10;60.21   <ins>the federal Medicare program under this section and as required by federal law.</ins>&#10;60.22       <ins>Subd. 4.</ins> <ins><b>Retroactive Medicare coverage.</b></ins> <ins>An individual who obtains Medicare </ins>&#10;60.23   <ins>coverage through the referendum under subdivision 2 may obtain retroactive coverage for </ins>&#10;60.24   <ins>the period specified in the modification of the agreement if employed by the governmental </ins>&#10;60.25   <ins>subdivision or by the special authority or district on the date of the modification of the </ins>&#10;60.26   <ins>agreement. The individual must pay an amount equal to the Medicare taxes which would </ins>&#10;60.27   <ins>have been imposed on the employee had the service been covered at the time performed. </ins>&#10;60.28   <ins>The employing local governmental subdivision or special authority or district must pay </ins>&#10;60.29   <ins>the necessary employer contributions for the retroactive Medicare coverage period. </ins>&#10;60.30   <ins>Nothing in this section shall require an employee or elected official to elect retroactive </ins>&#10;60.31   <ins>Medicare coverage.</ins>&#10;&#10;<a id="go.6.7.0"></a>60.32       Sec. 7. <ins><b>EFFECTIVE DATE.</b></ins>&#10;60.33   <ins>Sections 1 to 6 are effective the day following final enactment.</ins>&#10;&#10;<a id="go.7.0.0"></a>61.1                                           <b>ARTICLE 7</b>&#10;61.2                         <b>SUPPLEMENTAL RETIREMENT PLAN COVERAGE CHANGES</b>&#10;&#10;<a id="go.7.1.0"></a>61.3        Section 1. Minnesota Statutes 2004, section 356.24, subdivision 1, is amended to read:&#10;61.4        Subdivision 1. <b>Restriction; exceptions.</b> It is unlawful for a school district or other &#10;61.5    governmental subdivision or state agency to levy taxes for, or to contribute public funds to &#10;61.6    a supplemental pension or deferred compensation plan that is established, maintained, &#10;61.7    and operated in addition to a primary pension program for the benefit of the governmental &#10;61.8    subdivision employees other than:&#10;61.9    (1) to a supplemental pension plan that was established, maintained, and operated &#10;61.10   before May 6, 1971;&#10;61.11   (2) to a plan that provides solely for group health, hospital, disability, or death &#10;61.12   benefits;&#10;61.13   (3) to the individual retirement account plan established by chapter 354B;&#10;61.14   (4) to a plan that provides solely for severance pay under section  465.72 to a retiring &#10;61.15   or terminating employee; &#10;61.16   (5) for employees other than personnel employed by the Board of Trustees of the &#10;61.17   Minnesota State Colleges and Universities and covered under the Higher Education &#10;61.18   Supplemental Retirement Plan under chapter 354C, if the supplemental plan coverage is &#10;61.19   provided for in a personnel policy of the public employer or in the collective bargaining &#10;61.20   agreement between the public employer and the exclusive representative of public &#10;61.21   employees in an appropriate unit, in an amount matching employee contributions on a &#10;61.22   dollar for dollar basis, but not to exceed an employer contribution of $2,000 a year per &#10;61.23   employee;&#10;61.24   (i) to the state of Minnesota deferred compensation plan under section  352.96; or &#10;61.25   (ii) in payment of the applicable portion of the contribution made to any investment &#10;61.26   eligible under section 403(b) of the Internal Revenue Code, if the employing unit has &#10;61.27   complied with any applicable pension plan provisions of the Internal Revenue Code with &#10;61.28   respect to the tax-sheltered annuity program during the preceding calendar year;&#10;61.29   (6) for personnel employed by the Board of Trustees of the Minnesota State Colleges &#10;61.30   and Universities and not covered by clause (5), to the supplemental retirement plan under &#10;61.31   chapter 354C, if the supplemental plan coverage is provided for in a personnel policy &#10;61.32   or in the collective bargaining agreement of the public employer with the exclusive &#10;61.33   representative of the covered employees in an appropriate unit, in an amount matching &#10;61.34   employee contributions on a dollar for dollar basis, but not to exceed an employer &#10;61.35   contribution of $2,700 a year for each employee;&#10;62.1    (7) to a supplemental plan or to a governmental trust to save for postretirement &#10;62.2    health care expenses qualified for tax-preferred treatment under the Internal Revenue &#10;62.3    Code, if the supplemental plan coverage is provided for in a personnel policy or in the &#10;62.4    collective bargaining agreement of a public employer with the exclusive representative of &#10;62.5    the covered employees in an appropriate unit;&#10;62.6    (8) to the laborer's national industrial pension fund <ins>or to a laborer's local pension </ins>&#10;62.7    <ins>fund </ins>for the employees of a governmental subdivision who are covered by a collective &#10;62.8    bargaining agreement that provides for coverage by that fund and that sets forth a fund &#10;62.9    contribution rate, but not to exceed an employer contribution of <del>$2,000</del> <ins>$5,000 </ins>per year &#10;62.10   per employee;&#10;62.11   (9) to the plumbers' and pipefitters' national pension fund or to a plumbers' and &#10;62.12   pipefitters' local pension fund for the employees of a governmental subdivision who are &#10;62.13   covered by a collective bargaining agreement that provides for coverage by that fund &#10;62.14   and that sets forth a fund contribution rate, but not to exceed an employer contribution &#10;62.15   of <del>$2,000</del> <ins>$5,000 </ins>per year per employee;&#10;62.16   (10) to the International Union of Operating Engineers pension fund for the &#10;62.17   employees of a governmental subdivision who are covered by a collective bargaining &#10;62.18   agreement that provides for coverage by that fund and that sets forth a fund contribution &#10;62.19   rate, but not to exceed an employer contribution of <del>$2,000</del> <ins>$5,000 </ins>per year per employee; &#10;62.20   <del>or</del>&#10;62.21   (11) to a supplemental plan organized and operated under the federal Internal &#10;62.22   Revenue Code, as amended, that is wholly and solely funded by the employee's &#10;62.23   accumulated sick leave, accumulated vacation leave, and accumulated severance pay<ins>; or</ins>&#10;62.24   <ins>(12) to the International Association of Machinists national pension fund for the </ins>&#10;62.25   <ins>employees of a governmental subdivision who are covered by a collective bargaining </ins>&#10;62.26   <ins>agreement that provides for coverage by that fund and that sets forth a fund contribution </ins>&#10;62.27   <ins>rate, but not to exceed an employer contribution of $5,000 per year per employee</ins>.&#10;&#10;<a id="go.7.2.0"></a>62.28       Sec. 2. <ins><b>EFFECTIVE DATE.</b></ins>&#10;62.29   <ins>Section 1 is effective the day following final enactment.</ins>&#10;&#10;<a id="go.8.0.0"></a>62.30                                          <b>ARTICLE 8</b>&#10;62.31                         <b>RETIREMENT FUND INVESTMENT AUTHORITY CHANGES</b>&#10;&#10;<a id="go.8.1.0"></a>62.32       Section 1. Minnesota Statutes 2004, section 69.77, subdivision 9, is amended to read:&#10;62.33       Subd. 9. <b>Local police and paid fire relief association investment authority.</b>&#10; 62.34   (a) The funds of the association must be invested in securities that are authorized &#10;63.1    investments under section  356A.06, subdivision 6 or 7, whichever applies. <del>Up to 75 </del>&#10;63.2    <del>percent of the market value of the assets of</del> <ins>Notwithstanding any provision of section </ins>&#10;63.3    <ins>356A.06, subdivision 6 or 7 to the contrary, </ins>the <ins>special </ins>fund <ins>of the relief association </ins>&#10;63.4    may be <ins>additionally </ins>invested in<ins>:</ins>&#10;63.5    <ins>(1)</ins> open-end investment companies registered under the federal Investment &#10;63.6    Company Act of 1940, if the portfolio investments of the investment companies comply &#10;63.7    with the type of securities authorized for investment under section  356A.06, subdivision &#10;63.8    7<ins>, up to 75 percent of the market value of the assets of the fund; and</ins>&#10;63.9    <ins>(2) domestic government and corporate debt obligations that are not rated in the top </ins>&#10;63.10   <ins>four quality categories by a nationally recognized rating agency, and comparable unrated </ins>&#10;63.11   <ins>securities if the percentage of these assets does not exceed five percent of the total assets </ins>&#10;63.12   <ins>of the special fund or 15 percent of the special fund's nonequity assets, whichever is less, </ins>&#10;63.13   <ins>the special fund's participation is limited to 50 percent of a single offering of the debt </ins>&#10;63.14   <ins>obligations, and the special fund's participation is limited to 25 percent of an issuer's debt </ins>&#10;63.15   <ins>obligations that are not rated in the top four quality categories</ins>. Securities held by the &#10;63.16   association before June 2, 1989, that do not meet the requirements of this subdivision may &#10;63.17   be retained after that date if they were proper investments for the association on that date. &#10;63.18   (b) The governing board of the association may select and appoint investment &#10;63.19   agencies to act for and in its behalf or may certify special fund assets for investment by the &#10;63.20   State Board of Investment under section  11A.17. The governing board of the association &#10;63.21   may certify general fund assets of the relief association for investment by the State Board &#10;63.22   of Investment in fixed income pools or in a separately managed account at the discretion &#10;63.23   of the State Board of Investment as provided in section  11A.14. The governing board of &#10;63.24   the association may select and appoint a qualified private firm to measure management &#10;63.25   performance and return on investment, and the firm shall use the formula or formulas &#10;63.26   developed by the state board under section  11A.04, clause (11).&#10;&#10;<a id="go.8.2.0"></a>63.27       Sec. 2. Minnesota Statutes 2004, section 354A.08, is amended to read:&#10;63.28   <b>354A.08 AUTHORIZED INVESTMENTS.</b>&#10;63.29   <ins>In addition to investments authorized under section 356A.06, subdivision 7, </ins>a &#10;63.30   teachers retirement fund association may receive, hold, and dispose of<ins>:</ins>&#10;63.31   <ins>(1) </ins> real estate or personal property acquired by it, whether the acquisition was by &#10;63.32   purchase, or any other lawful means, as provided in this chapter or in the association's &#10;63.33   articles of incorporation<del>.</del><ins>; and</ins>&#10;63.34   <ins>(2) domestic government and corporate debt obligations that are not rated in the top </ins>&#10;63.35   <ins>four quality categories by a nationally recognized rating agency, and comparable unrated </ins>&#10;64.1    <ins>securities if the percentage of these assets does not exceed five percent of the total assets </ins>&#10;64.2    <ins>of the pension plan or 15 percent of the pension plan's nonequity assets, whichever is less, </ins>&#10;64.3    <ins>the pension plan's participation is limited to 50 percent of a single offering of the debt </ins>&#10;64.4    <ins>obligations, and the pension plan's participation is limited to 25 percent of an issuer's debt </ins>&#10;64.5    <ins>obligations that are not rated in the top four quality categories.</ins>&#10;64.6     In addition to other authorized real estate investments, an association may also &#10;64.7    invest funds in Minnesota situs nonfarm real estate ownership interests or loans secured &#10;64.8    by mortgages or deeds of trust.<ins> The board may also certify assets for investment by the </ins>&#10;64.9    <ins>State Board of Investment as provided under section 11A.17.</ins>&#10;&#10;<a id="go.8.3.0"></a>64.10       Sec. 3. Minnesota Statutes 2004, section 354A.28, subdivision 5, is amended to read:&#10;64.11       Subd. 5. <b>Investment.</b> The assets of the annuity reserve fund must be invested, &#10;64.12   reinvested, and retained <del>in the discretion of</del> <ins>by </ins>the board of trustees of the Minneapolis &#10;64.13   Teachers Retirement Fund Association in authorized investments under section  <del>11A.24</del><ins> </ins>&#10;64.14   <ins>356A.06, subdivision 7</ins>. &#10;&#10;<a id="go.8.4.0"></a>64.15       Sec. 4. Minnesota Statutes 2004, section 356.219, subdivision 3, is amended to read:&#10;64.16       Subd. 3. <b>Content of reports.</b> (a) The report required by subdivision 1 must include &#10;64.17   a written statement of the investment policy <del>in effect on June 30, 1997, if that statement </del>&#10;64.18   <del>has not been previously submitted</del>. Following that <del>date</del><ins> initial report</ins>, subsequent reports &#10;64.19   must include investment policy changes and the effective date of each policy change &#10;64.20   rather than a complete statement of investment policy, unless the state auditor requests &#10;64.21   submission of a complete current statement. The report must also include the information &#10;64.22   required by the following paragraphs, as applicable.&#10;64.23   (b) If <ins>after four years of reporting under this paragraph, the total portfolio time </ins>&#10;64.24   <ins>weighted rate of return, net of all investment related costs and fees, provided by the public </ins>&#10;64.25   <ins>pension plan differs by no more than 0.1 percent from the comparable return for the plan </ins>&#10;64.26   <ins>calculated by the office of the state auditor, and if </ins>a public pension plan has a total market &#10;64.27   value of <del>$10,000,000</del> <ins>$25,000,000 </ins>or more as of the beginning of the calendar year, <ins>and if </ins>&#10;64.28   <ins>the public pension plan's annual audit is performed by the state auditor or by the legislative </ins>&#10;64.29   <ins>auditor, </ins>the report required by subdivision 1 must include the market value of the total &#10;64.30   portfolio and the market value of each <del>investment account, investment portfolio, or</del> asset &#10;64.31   class included in the pension fund as of the beginning of the calendar year and <ins>as of the </ins>&#10;64.32   <ins>end of the calendar year. At the discretion of the state auditor, the public pension plan may </ins>&#10;64.33   <ins>be required to submit the market value of the total portfolio and the market value of each </ins>&#10;64.34   <ins>investment account, investment portfolio, or asset class included in the pension fund </ins>for &#10;65.1    each month, and the amount and date of each injection and withdrawal to the total portfolio &#10;65.2    and to each investment account, investment portfolio, or asset class. If <del>a public pension </del>&#10;65.3    <del>plan once files a report under this paragraph</del><ins> the market value of a public pension plan's </ins>&#10;65.4    <ins>fund drops below $25,000,000 in a subsequent year</ins>, it must continue reporting under this &#10;65.5    paragraph for any subsequent year in which the public pension plan is not fully invested as &#10;65.6    specified in subdivision 1, paragraph (b), <del>even if asset values drop below $10,000,000 in </del>&#10;65.7    <del>market value in that subsequent year</del><ins> except that if the public pension plan's annual audit </ins>&#10;65.8    <ins>is not performed by the state auditor or legislative auditor, paragraph (c) applies</ins>.&#10;65.9    (c) <ins>If paragraph (b) would apply if the annual audit were provided by the state </ins>&#10;65.10   <ins>auditor or legislative auditor, the report required by subdivision 1 must include the market </ins>&#10;65.11   <ins>value of the total portfolio and the market value of each asset class included in the pension </ins>&#10;65.12   <ins>fund as of the beginning of the calendar year and for each month, and the amount and date </ins>&#10;65.13   <ins>of each injection and withdrawal to the total portfolio and to each investment account, </ins>&#10;65.14   <ins>investment portfolio, or asset class.</ins>&#10;65.15   <ins>(d) </ins>For public pension plans to which paragraph (b) <ins>or (c) </ins>applies, the report required &#10;65.16   by subdivision 1 must also include a calculation of the total time-weighted rate of return &#10;65.17   available from index-matching investments assuming the asset class performance targets &#10;65.18   and target asset mix indicated in the written statement of investment policy. The provided &#10;65.19   information must include a description of indices used in the analyses and an explanation &#10;65.20   of why those indices are appropriate. This paragraph does not apply to any fully invested &#10;65.21   plan, as defined by subdivision 1, paragraph (b). Reporting by the State Board of &#10;65.22   Investment under this paragraph is limited to information on the Minnesota public pension &#10;65.23   plans required to be invested by the State Board of Investment under section  11A.23. &#10;65.24   <del>(d)</del> <ins>(e) </ins>If a public pension plan has a total market value of less than <del>$10,000,000</del> &#10;65.25   <ins>$25,000,000 </ins>as of the beginning of the calendar year and was never required to file under &#10;65.26   paragraph (b)<ins> or (c)</ins>, the report required by subdivision 1 must include the amount and &#10;65.27   date of each total portfolio injection and withdrawal. In addition, the report must include &#10;65.28   the market value of the total portfolio as of the beginning of the calendar year and for &#10;65.29   each quarter.&#10;65.30   <del>(e)</del> <ins>(f) </ins>Any public pension plan reporting under paragraph (b) or <del>(d) may</del> <ins>(c) must </ins>&#10;65.31   include computed time-weighted rates of return with the report, in addition to all other &#10;65.32   required information, as applicable. <del>If these returns are supplied, the individual who </del>&#10;65.33   <del>computed</del> <ins>The chief administrative officer of the public pension plan submitting </ins>the returns &#10;65.34   must certify <ins>on a form prescribed by the state auditor </ins>that the returns <ins>have been computed </ins>&#10;65.35   <ins>by the pension plan's investment performance consultant or custodial bank. The chief </ins>&#10;65.36   <ins>administrative officer of the public pension plan submitting the returns also must certify </ins>&#10;66.1    <ins>that the returns </ins>are net of all costs and fees, including investment management fees, and &#10;66.2    that the procedures used to compute the returns are consistent with Bank Administration &#10;66.3    Institute studies of investment performance measurement and <del>Association for Investment </del>&#10;66.4    <del>Management and Research</del> presentation standards<ins> set by the Certified Financial Analyst </ins>&#10;66.5    <ins>Institute. If the certifications required under this paragraph are not provided, the reporting </ins>&#10;66.6    <ins>requirements of paragraph (c) apply</ins>.&#10;66.7    <del>(f)</del> <ins>(g) </ins>For public pension plans reporting under paragraph <del>(d)</del><ins> (e)</ins>, the public pension &#10;66.8    plan must retain supporting information specifying the date and amount of each injection &#10;66.9    and withdrawal to each investment account and investment portfolio. The public pension &#10;66.10   plan must also retain the market value of each investment account and investment &#10;66.11   portfolio at the beginning of the calendar year and for each quarter. Information that is &#10;66.12   required to be collected and retained for any given year or years under this paragraph &#10;66.13   must be submitted to the Office of the State Auditor if the Office of the State Auditor &#10;66.14   requests in writing that the information be submitted by a public pension plan or plans, &#10;66.15   or be submitted by the State Board of Investment for any plan or plans for which the &#10;66.16   State Board of Investment is the investment authority under this section. If the state &#10;66.17   auditor requests information under this subdivision, and the public plan fails to comply, &#10;66.18   the pension plan is subject to penalties under subdivision 5, unless penalties are waived by &#10;66.19   the state auditor under that subdivision.&#10;&#10;<a id="go.8.5.0"></a>66.20       Sec. 5. Minnesota Statutes 2004, section 356.219, subdivision 6, is amended to read:&#10;66.21       Subd. 6. <b>Investment disclosure report.</b> (a) The state auditor shall prepare an annual &#10;66.22   report to the legislature on the investment performance of the various public pension plans &#10;66.23   subject to this section. The content of the report is specified in paragraphs (b) to <del>(e)</del><ins> (f)</ins>.&#10;66.24   (b) For each public pension plan reporting under subdivision 3, paragraph (b), the &#10;66.25   state auditor shall <del>compute and</del> report total portfolio and asset class time-weighted rates of &#10;66.26   return, net of all investment-related costs and fees.<ins> If the state auditor has required a plan </ins>&#10;66.27   <ins>to submit the market value of the total portfolio and the market value of each investment </ins>&#10;66.28   <ins>account, investment portfolio, or asset class included in the pension fund for each month, </ins>&#10;66.29   <ins>and the amount and date of each injection and withdrawal to the total portfolio and to each </ins>&#10;66.30   <ins>investment account, investment portfolio, or asset class as prescribed under subdivision </ins>&#10;66.31   <ins>3, paragraph (b), the state auditor shall also compute and report total portfolio and asset </ins>&#10;66.32   <ins>class time-weighted rates of return, net of all costs and fees.</ins>&#10;66.33   (c) <ins>For each public pension plan reporting under subdivision 3, paragraph (c), the </ins>&#10;66.34   <ins>state auditor shall compute and report total portfolio and asset class time-weighted rates of </ins>&#10;66.35   <ins>return, net of all costs and fees.</ins>&#10;67.1    <ins>(d) </ins>For each public pension plan reporting under subdivision 3, paragraph <del>(d)</del><ins> (e)</ins>, &#10;67.2    the state auditor shall compute and report total portfolio time-weighted rates of return, net &#10;67.3    of all costs and fees. If the state auditor has requested data for a plan under subdivision 3, &#10;67.4    paragraph <del>(f)</del><ins> (g)</ins>, the state auditor may also compute and report asset class time-weighted &#10;67.5    rates of return, net of all costs and fees.&#10;67.6    <del>(d)</del> <ins>(e) </ins>The report by the state auditor must include the information submitted by the &#10;67.7    pension plans under subdivision 3, paragraph <del>(c)</del><ins> (d)</ins>, or a synopsis of that information.&#10;67.8    <del>(e)</del> <ins>(f) </ins>The report by the state auditor may also include a presentation of multiyear &#10;67.9    performance, information collected under subdivision 4, and any other information or &#10;67.10   analysis deemed appropriate by the state auditor.&#10;&#10;<a id="go.8.6.0"></a>67.11       Sec. 6. Minnesota Statutes 2005 Supplement, section 356A.06, subdivision 7, is &#10;67.12   amended to read:&#10;67.13       Subd. 7. <b>Expanded list of authorized investment securities.</b> (a) Authority. &#10;67.14   Except to the extent otherwise authorized by law <del>or bylaws</del>, a covered pension plan not &#10;67.15   described by subdivision 6, paragraph (a), <del>may</del> <ins>shall </ins>invest its assets only in accordance &#10;67.16   with this subdivision.&#10;67.17   (b) Securities generally. The covered pension plan has the authority to purchase, &#10;67.18   sell, lend, or exchange the securities specified in paragraphs (c) to <del>(h)</del><ins> (i)</ins>, including &#10;67.19   puts and call options and future contracts traded on a contract market regulated by a &#10;67.20   governmental agency or by a financial institution regulated by a governmental agency. &#10;67.21   These securities may be owned as units in commingled trusts that own the securities &#10;67.22   described in paragraphs (c) to <del>(h)</del><ins> (i), including real estate investment trusts and insurance </ins>&#10;67.23   <ins>company commingled accounts, including separate accounts</ins>.&#10;67.24   (c) Government obligations. The covered pension plan may invest funds in &#10;67.25   governmental bonds, notes, bills, mortgages, and other evidences of indebtedness &#10;67.26   provided the issue is backed by the full faith and credit of the issuer or the issue is rated &#10;67.27   among the top four quality rating categories by a nationally recognized rating agency. The &#10;67.28   obligations in which funds may be invested under this paragraph include guaranteed or &#10;67.29   insured issues of (1) the United States, its agencies, its instrumentalities, or organizations &#10;67.30   created and regulated by an act of Congress; (2) Canada and its provinces, provided &#10;67.31   the principal and interest is payable in United States dollars; (3) the states and their &#10;67.32   municipalities, political subdivisions, agencies, or instrumentalities; (4) the International &#10;67.33   Bank for Reconstruction and Development, the Inter-American Development Bank, the &#10;67.34   Asian Development Bank, the African Development Bank, or any other United States &#10;68.1    government sponsored organization of which the United States is a member, provided the &#10;68.2    principal and interest is payable in United States dollars.&#10;68.3    (d) Corporate obligations. The covered pension plan may invest funds in bonds, &#10;68.4    notes, debentures, transportation equipment obligations, or any other longer term &#10;68.5    evidences of indebtedness issued or guaranteed by a corporation organized under the laws &#10;68.6    of the United States or any state thereof, or the Dominion of Canada or any province &#10;68.7    thereof if they conform to the following provisions:&#10;68.8    (1) the principal and interest of obligations of corporations incorporated or organized &#10;68.9    under the laws of the Dominion of Canada or any province thereof must be payable in &#10;68.10   United States dollars; and&#10;68.11   (2) obligations must be rated among the top four quality categories by a nationally &#10;68.12   recognized rating agency.&#10;68.13   (e) Other obligations. (1) The covered pension plan may invest funds in &#10;68.14   bankers acceptances, certificates of deposit, deposit notes, commercial paper, mortgage &#10;68.15   participation certificates and pools, asset backed securities, repurchase agreements and &#10;68.16   reverse repurchase agreements, guaranteed investment contracts, savings accounts, and &#10;68.17   guaranty fund certificates, surplus notes, or debentures of domestic mutual insurance &#10;68.18   companies if they conform to the following provisions:&#10;68.19   (i) bankers acceptances and deposit notes of United States banks are limited to those &#10;68.20   issued by banks rated in the highest four quality categories by a nationally recognized &#10;68.21   rating agency;&#10;68.22   (ii) certificates of deposit are limited to those issued by (A) United States banks and &#10;68.23   savings institutions that are rated in the highest four quality categories by a nationally &#10;68.24   recognized rating agency or whose certificates of deposit are fully insured by federal &#10;68.25   agencies; or (B) credit unions in amounts up to the limit of insurance coverage provided &#10;68.26   by the National Credit Union Administration;&#10;68.27   (iii) commercial paper is limited to those issued by United States corporations or &#10;68.28   their Canadian subsidiaries and rated in the highest two quality categories by a nationally &#10;68.29   recognized rating agency;&#10;68.30   (iv) mortgage participation or pass through certificates evidencing interests in pools &#10;68.31   of first mortgages or trust deeds on improved real estate located in the United States where &#10;68.32   the loan to value ratio for each loan as calculated in accordance with section 61A.28, &#10;68.33   subdivision 3, does not exceed 80 percent for fully amortizable residential properties and &#10;68.34   in all other respects meets the requirements of section 61A.28, subdivision 3;&#10;68.35   (v) collateral for repurchase agreements and reverse repurchase agreements is &#10;68.36   limited to letters of credit and securities authorized in this section;&#10;69.1    (vi) guaranteed investment contracts are limited to those issued by insurance &#10;69.2    companies or banks rated in the top four quality categories by a nationally recognized &#10;69.3    rating agency or to alternative guaranteed investment contracts where the underlying &#10;69.4    assets comply with the requirements of this subdivision;&#10;69.5    (vii) savings accounts are limited to those fully insured by federal agencies; and&#10;69.6    (viii) asset backed securities must be rated in the top four quality categories by a &#10;69.7    nationally recognized rating agency.&#10;69.8    (2) Sections 16A.58, 16C.03, subdivision 4, and 16C.05 do not apply to certificates &#10;69.9    of deposit and collateralization agreements executed by the covered pension plan under &#10;69.10   clause (1), item (ii).&#10;69.11   (3) In addition to investments authorized by clause (1), item (iv), the covered &#10;69.12   pension plan may purchase from the Minnesota Housing Finance Agency all or any part of &#10;69.13   a pool of residential mortgages, not in default, that has previously been financed by the &#10;69.14   issuance of bonds or notes of the agency. The covered pension plan may also enter into &#10;69.15   a commitment with the agency, at the time of any issue of bonds or notes, to purchase &#10;69.16   at a specified future date, not exceeding 12 years from the date of the issue, the amount &#10;69.17   of mortgage loans then outstanding and not in default that have been made or purchased &#10;69.18   from the proceeds of the bonds or notes. The covered pension plan may charge reasonable &#10;69.19   fees for any such commitment and may agree to purchase the mortgage loans at a price &#10;69.20   sufficient to produce a yield to the covered pension plan comparable, in its judgment, &#10;69.21   to the yield available on similar mortgage loans at the date of the bonds or notes. The &#10;69.22   covered pension plan may also enter into agreements with the agency for the investment &#10;69.23   of any portion of the funds of the agency. The agreement must cover the period of the &#10;69.24   investment, withdrawal privileges, and any guaranteed rate of return.&#10;69.25   (f) Corporate stocks. The covered pension plan may invest funds in stocks or &#10;69.26   convertible issues of any corporation organized under the laws of the United States or the &#10;69.27   states thereof, any corporation organized under the laws of the Dominion of Canada or its &#10;69.28   provinces, or any corporation listed on an exchange regulated by an agency of the United &#10;69.29   States or of the Canadian national government, if they conform to the following provisions:&#10;69.30   (1) the aggregate value of <del>corporate stock</del> investments<ins> under this paragraph, plus </ins>&#10;69.31   <ins>paragraphs (g) and (k), plus equity investments under paragraphs (h), (i), and (j)</ins>, as &#10;69.32   adjusted for realized <del>profits</del> <ins>gains </ins>and losses, must not exceed 85 percent of the market &#10;69.33   or book value, whichever is less, of a fund<del>, less the aggregate value of investments </del>&#10;69.34   <del>according to paragraph (h)</del>;<ins> and</ins>&#10;69.35   (2) investments must not exceed five percent of the total outstanding shares of &#10;69.36   any one corporation.&#10;70.1    (g) <ins>Developed market foreign stocks investments.</ins><ins> In addition to investments </ins>&#10;70.2    <ins>authorized under paragraph (f), the covered pension fund may invest in foreign stock </ins>&#10;70.3    <ins>sold on an exchange in any developed market country included in the Europe, Australia, </ins>&#10;70.4    <ins>and Far East Index.</ins>&#10;70.5    <ins>(h) </ins><ins>Commingled or mutual investments.</ins><ins> The covered pension plan may invest </ins>&#10;70.6    <ins>in index funds or mutual funds, including index mutual funds, through bank-sponsored </ins>&#10;70.7    <ins>collective funds and shares of open-end investment companies registered under the </ins>&#10;70.8    <ins>Federal Investment Company Act of 1940, if the investments of the index or mutual fund </ins>&#10;70.9    <ins>comply with paragraphs (c) to (j).</ins>&#10;70.10   <ins>(i) </ins><ins>Real estate investment trust; related investments.</ins><ins> The covered pension plan </ins>&#10;70.11   <ins>may invest in real estate investment trusts secured by mortgages or deeds of trust and </ins>&#10;70.12   <ins>sold on an exchange, and insurance company commingled accounts, including separate </ins>&#10;70.13   <ins>accounts, of a debt or equity nature.</ins>&#10;70.14   <ins>(j) </ins>Exchange traded funds.The covered pension plan may invest funds in exchange &#10;70.15   traded funds, subject to the maximums, the requirements, and the limitations set forth in &#10;70.16   <del>paragraph (d), (e), (f), or (h), whichever applies</del><ins> paragraphs (c) to (i), as applicable</ins>.&#10;70.17   <del>(h)</del><ins> (k) </ins> Other investments.(1) In addition to the investments authorized in &#10;70.18   paragraphs (b) to <del>(g)</del><ins> (j)</ins>, and subject to the provisions in clause (2), the covered pension &#10;70.19   plan may invest funds in:&#10;70.20   (i) venture capital investment businesses through participation in limited partnerships &#10;70.21   and corporations;&#10;70.22   (ii) real estate ownership interests or loans secured by mortgages or deeds of trust &#10;70.23   through investment in limited partnerships<del>,</del><ins> or </ins> bank sponsored collective funds<del>, trusts, and </del>&#10;70.24   <del>insurance company commingled accounts, including separate accounts</del>;&#10;70.25   (iii) regional and mutual funds through bank sponsored collective funds and &#10;70.26   open-end investment companies registered under the Federal Investment Company Act of &#10;70.27   1940<ins> which do not qualify under paragraph (h)</ins>;&#10;70.28   (iv) resource investments through limited partnerships, private placements, and &#10;70.29   corporations; and&#10;70.30   (v) international <ins>debt </ins>securities<ins> and emerging market equity securities</ins>.&#10;70.31   (2) The investments authorized in clause (1) must conform to the following &#10;70.32   provisions:&#10;70.33   (i) the aggregate value of all investments made according to clause (1) may not &#10;70.34   exceed <del>35</del> <ins>20 </ins>percent of the market value of the fund for which the covered pension &#10;70.35   plan is investing;&#10;71.1    (ii) there must be at least four unrelated owners of the investment other than the &#10;71.2    covered pension plan for investments made under clause (1), item (i), (ii), (iii), or (iv);&#10;71.3    (iii) covered pension plan participation in an investment vehicle is limited to 20 &#10;71.4    percent thereof for investments made under clause (1), item (i), (ii), (iii), or (iv); and&#10;71.5    (iv) covered pension plan participation in a limited partnership does not include a &#10;71.6    general partnership interest or other interest involving general liability. The covered &#10;71.7    pension plan may not engage in any activity as a limited partner which creates general &#10;71.8    liability.&#10;&#10;<a id="go.8.7.0"></a>71.9        Sec. 7. <ins><b>TRANSITION PROVISION.</b></ins>&#10;71.10   <ins>A covered pension plan with investments that on the day prior to the effective date </ins>&#10;71.11   <ins>of this section do not comply with section 3 shall divest of any assets not in compliance </ins>&#10;71.12   <ins>before January 1, 2008.</ins>&#10;&#10;<a id="go.8.8.0"></a>71.13       Sec. 8. <ins><b>EFFECTIVE DATE.</b></ins>&#10;71.14   <ins>Sections 1 to 5 are effective the day following final enactment.</ins>&#10;&#10;<a id="go.9.0.0"></a>71.15                                          <b>ARTICLE 9</b>&#10;71.16                        <b>MINNEAPOLIS POLICE RELIEF ASSOCIATION CHANGES</b>&#10;&#10;<a id="go.9.1.0"></a>71.17       Section 1. Minnesota Statutes 2004, section 423B.07, is amended to read:&#10;71.18   <b>423B.07 AUTHORIZED FUND DISBURSEMENTS.</b>&#10;71.19   The police pension fund may be used only for the payment of:&#10;71.20   (1) service, disability, or dependency pensions;&#10;71.21   (2) notwithstanding a contrary provision of section  69.80, the salaries of the elected &#10;71.22   members of the board of trustees in an amount not to exceed <del>three</del> <ins>seven </ins>units<ins> for the </ins>&#10;71.23   <ins>president and five units for other elected board members</ins>; &#10;71.24   (3) expenses of officers and employees of the association in connection with the &#10;71.25   protection of the fund;&#10;71.26   (4) expenses of operating and maintaining the association, including the &#10;71.27   administrative expenses related to the administration of the insurance plan authorized &#10;71.28   in section  423B.08; and &#10;71.29   (5) other expenses authorized by section  69.80, or other applicable law. &#10;&#10;<a id="go.9.2.0"></a>71.30       Sec. 2. Minnesota Statutes 2005 Supplement, section 423B.09, subdivision 1, is &#10;71.31   amended to read:&#10;72.1        Subdivision 1. <b>Minneapolis police; persons entitled to receive pensions.</b> The &#10;72.2    association shall grant pensions payable from the police pension fund in monthly &#10;72.3    installments to persons entitled to pensions in the manner and for the following purposes.&#10;72.4    (a) An active member or a deferred pensioner who has performed duty as a member &#10;72.5    of the police department of the city for five years or more, upon written application after &#10;72.6    retiring from duty and reaching at least age 50, is entitled to be paid monthly for life a &#10;72.7    service pension. Active members, deferred members, and service pensioners are entitled &#10;72.8    to a service pension according to the following schedule:&#10;<rs_table>72.9                                        <ins>A</ins>                <ins>B</ins>         &#10;72.10                         5 years    <del>8.0</del> <ins>8.5 </ins>units         <ins>9.0 units</ins>&#10;72.11                         6 years   <del>9.6</del> <ins>10.1 </ins>units        <ins>10.6 units</ins>&#10;72.12                         7 years  <del>11.2</del> <ins>11.7 </ins>units        <ins>12.2 units</ins>&#10;72.13                         8 years  <del>12.8</del> <ins>13.3 </ins>units        <ins>13.8 units</ins>&#10;72.14                         9 years  <del>14.4</del> <ins>14.9 </ins>units        <ins>15.4 units</ins>&#10;72.15                        10 years  <del>16.0</del> <ins>16.5 </ins>units        <ins>17.0 units</ins>&#10;72.16                        11 years  <del>17.6</del> <ins>18.1 </ins>units        <ins>18.6 units</ins>&#10;72.17                        12 years  <del>19.2</del> <ins>19.7 </ins>units        <ins>20.2 units</ins>&#10;72.18                        13 years  <del>20.8</del> <ins>21.3 </ins>units        <ins>21.8 units</ins>&#10;72.19                        14 years  <del>22.4</del> <ins>22.9 </ins>units        <ins>23.4 units</ins>&#10;72.20                        15 years  <del>24.0</del> <ins>24.5 </ins>units        <ins>25.0 units</ins>&#10;72.21                        16 years  <del>25.6</del> <ins>26.1 </ins>units        <ins>26.6 units</ins>&#10;72.22                        17 years  <del>27.2</del> <ins>27.7 </ins>units        <ins>28.2 units</ins>&#10;72.23                        18 years  <del>28.8</del> <ins>29.3 </ins>units        <ins>29.8 units</ins>&#10;72.24                        19 years  <del>30.4</del> <ins>30.9 </ins>units        <ins>31.4 units</ins>&#10;72.25                                       <del>A</del>                <del>B</del>         &#10;72.26                        20 years       34.5 units        35.0 units&#10;72.27                        21 years       36.1 units        36.6 units&#10;72.28                        22 years       37.7 units        38.2 units&#10;72.29                        23 years       39.3 units        39.8 units&#10;72.30                        24 years       40.9 units        41.4 units&#10;72.31                        25 years       42.5 units        43.0 units&#10;</rs_table>73.1    Column A is applicable until December 31, 2005, and applies retroactively to &#10;73.2    January 1, 2005, for a service pensioner who retired before January 1, 2005. Column B &#10;73.3    applies on and after January 1, 2006.&#10;73.4    Fractional years of service may not be used in computing pensions.&#10;73.5    (b) An active member who after five years' service but less than 20 years' service &#10;73.6    with the police department of the city, becomes superannuated so as to be permanently &#10;73.7    unable to perform the person's assigned duties, is entitled to be paid monthly for life a &#10;73.8    superannuation pension equal to four units for five years of service and an additional two &#10;73.9    units for each full year of service over five years and less than 20 years.&#10;73.10   (c) An active member who is not eligible for a service pension and who, while a &#10;73.11   member of the police department of the city, becomes diseased or sustains an injury while &#10;73.12   in the service that permanently unfits the member for the performance of police duties is &#10;73.13   entitled to be paid monthly for life a pension equal to 34 units while so disabled.&#10;&#10;<a id="go.9.3.0"></a>73.14       Sec. 3. <ins><b>[423B.23] RECOMPUTATION OF DISABLED BENEFIT PROHIBITED.</b></ins>&#10;73.15   <ins>Notwithstanding section 423A.11, the Board of Directors of the Minneapolis Police </ins>&#10;73.16   <ins>Relief Association shall not recompute the disability benefit of a member who became </ins>&#10;73.17   <ins>permanently disabled as the result of a service-related disease or injury.  Any prior </ins>&#10;73.18   <ins>recomputation of a disabled member's service-related disability pension shall be revoked </ins>&#10;73.19   <ins>upon the member's request and upon the member's signed and sworn  agreement to waive </ins>&#10;73.20   <ins>any right to a recomputation of that benefit in the future.  Nonservice-related disability </ins>&#10;73.21   <ins>pension benefits that were recomputed at full 25-year service pensions shall remain </ins>&#10;73.22   <ins>in effect.</ins>&#10;&#10;<a id="go.9.4.0"></a>73.23       Sec. 4. <ins><b>EFFECTIVE DATE; LOCAL APPROVAL.</b></ins>&#10;73.24   <ins>(a) Section 1 is effective the day after the date of approval by the city council of </ins>&#10;73.25   <ins>the city of Minneapolis and the timely completion by the chief clerical officer of the city </ins>&#10;73.26   <ins>of Minneapolis of compliance with Minnesota Statutes, section 645.021, subdivisions </ins>&#10;73.27   <ins>2 and 3.</ins>&#10;73.28   <ins>(b) Section 2 is effective the day after the governing body of the city of Minneapolis </ins>&#10;73.29   <ins>and its chief clerical officer timely complete their compliance with Minnesota Statutes, </ins>&#10;73.30   <ins>section 645.021, subdivisions 2 and 3.</ins>&#10;73.31   <ins>(c) Section 3 is effective the day after the governing body of the city of Minneapolis </ins>&#10;73.32   <ins>and its chief clerical officer timely complete their compliance with Minnesota Statutes, </ins>&#10;73.33   <ins>section 645.021, subdivisions 2 and 3. </ins>&#10;&#10;<a id="go.10.0.0"></a>74.1                                           <b>ARTICLE 10</b>&#10;74.2                                   <b>RECODIFICATION OF VARIOUS</b>&#10;74.3                              <b>STATEWIDE SPECIALTY RETIREMENT PLANS</b>&#10;&#10;<a id="go.10.1.0"></a>74.4        Section 1. Minnesota Statutes 2004, section 3A.01, subdivision 1, is amended to read:&#10;74.5        Subdivision 1. <b>Purposes.</b> <ins>Each of </ins>the terms defined in this section<ins>,</ins> for the purposes &#10;74.6    of this chapter <del>shall be given </del><ins>has </ins>the <del>meanings </del><ins>meaning </ins>ascribed <del>to them</del>.&#10;&#10;<a id="go.10.2.0"></a>74.7        Sec. 2. Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision to &#10;74.8    read:&#10;74.9        <ins>Subd. 1a.</ins> <ins><b>Actuarial equivalent.</b></ins> <ins>"Actuarial equivalent" means the condition of one </ins>&#10;74.10   <ins>allowance or benefit having an equal actuarial present value to another allowance or </ins>&#10;74.11   <ins>benefit, determined by the actuary retained under section </ins><ins>356.214</ins><ins> as of a given date at a </ins>&#10;74.12   <ins>specified age with each actuarial present value based on the mortality table applicable for </ins>&#10;74.13   <ins>the plan and approved under section </ins><ins>356.215, subdivision 18</ins><ins>, and using the applicable </ins>&#10;74.14   <ins>preretirement or postretirement interest rate assumption specified in section </ins><ins>356.215, </ins>&#10;74.15   <ins>subdivision 8</ins><ins>.</ins>&#10;&#10;<a id="go.10.3.0"></a>74.16       Sec. 3. Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision to &#10;74.17   read:&#10;74.18       <ins>Subd. 1b.</ins> <ins><b>Average monthly salary.</b></ins> <ins>"Average monthly salary" means the average </ins>&#10;74.19   <ins>of the member's highest five successive years of salary that was received as a member </ins>&#10;74.20   <ins>of the legislature and upon which the member has made contributions under section </ins>&#10;74.21   <ins>3A.03, subdivision 1</ins><ins>, or for which the member of the legislature has made payments for </ins>&#10;74.22   <ins>past service under Minnesota Statutes 2004, section </ins><ins>3A.02, subdivision 2</ins><ins>, or has made, </ins>&#10;74.23   <ins>before July 1, 1994, payments in lieu of contributions under Minnesota Statutes 1992, </ins>&#10;74.24   <ins>section </ins><ins>3A.031</ins><ins>.</ins>&#10;&#10;<a id="go.10.4.0"></a>74.25       Sec. 4. Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision to &#10;74.26   read:&#10;74.27       <ins>Subd. 1c.</ins> <ins><b>Constitutional officer.</b></ins> <ins>"Constitutional officer" means a person who was </ins>&#10;74.28   <ins>duly elected, qualifies for, and serves as the governor, the lieutenant governor, the attorney </ins>&#10;74.29   <ins>general, the secretary of state, or the state auditor of the state of Minnesota.</ins>&#10;&#10;<a id="go.10.5.0"></a>74.30       Sec. 5. Minnesota Statutes 2004, section 3A.01, subdivision 2, is amended to read:&#10;75.1        Subd. 2. <b>Dependent child.</b> <ins>(a) </ins>"Dependent child" means any natural or adopted &#10;75.2    child of a deceased member of the legislature or <ins>a </ins>former legislator who is under the age &#10;75.3    of 18, or who is under the age of 22 and is a full-time student, and who<ins>,</ins> in either case<ins>,</ins> is &#10;75.4    unmarried and was actually dependent for more than one-half of support upon <del>such </del><ins>the </ins>&#10;75.5    legislator for a period <ins>of </ins>at least 90 days immediately <del>prior to </del><ins>before </ins>the legislator's &#10;75.6    death. <del>It </del>&#10;75.7    <ins>(b) The term </ins>also includes any child of the member of the legislature or former &#10;75.8    legislator <ins>who was </ins>conceived during the lifetime of, and <ins>who was </ins>born after the death of, &#10;75.9    the member or former legislator. <del>This subdivision shall be retroactive as to any dependent </del>&#10;75.10   <del>child under the age of 22 years as of April 1,1975.</del>&#10;&#10;<a id="go.10.6.0"></a>75.11       Sec. 6. Minnesota Statutes 2004, section 3A.01, subdivision 6, is amended to read:&#10;75.12       Subd. 6. <b>Director.</b>  "Director" means the executive director of the Minnesota State &#10;75.13   Retirement System <ins>who was appointed under section </ins><ins>352.03</ins><ins>, subdivision 5</ins>.&#10;&#10;<a id="go.10.7.0"></a>75.14       Sec. 7. Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision to &#10;75.15   read:&#10;75.16       <ins>Subd. 6b.</ins> <ins><b>Former legislator.</b></ins> <ins>"Former legislator" means a legislator who has </ins>&#10;75.17   <ins>ceased to be a member of the legislature for any reason, including, but not limited to, the </ins>&#10;75.18   <ins>expiration of the term for which a member of the legislature was elected or the death </ins>&#10;75.19   <ins>of the member.</ins>&#10;&#10;<a id="go.10.8.0"></a>75.20       Sec. 8. Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision to &#10;75.21   read:&#10;75.22       <ins>Subd. 6c.</ins> <ins><b>Member of the legislature.</b></ins> <ins>"Member of the legislature" means a </ins>&#10;75.23   <ins>person who was a member of the house of representatives or of the senate of the state of </ins>&#10;75.24   <ins>Minnesota who has subscribed to the oath of office after July 1, 1965, and who was first </ins>&#10;75.25   <ins>elected to a legislative office before July 1, 1997, and retained coverage by the plan under </ins>&#10;75.26   <ins>Laws 1997, chapter 233, article 2, section 15.</ins>&#10;&#10;<a id="go.10.9.0"></a>75.27       Sec. 9. Minnesota Statutes 2004, section 3A.01, subdivision 8, is amended to read:&#10;75.28       Subd. 8. <b>Normal retirement age.</b>  "Normal retirement age" means the age of <del>60 </del>&#10;75.29   <del>years with regard to any member of the legislature whose service terminates prior to the </del>&#10;75.30   <del>beginning of the 1981 legislative session, and the age of</del> 62 years <del>with regard to any </del>&#10;75.31   <del>member of the legislature whose service terminates after the beginning of the 1981 session</del>.&#10;&#10;<a id="go.10.10.0"></a>76.1        Sec. 10. Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision &#10;76.2    to read:&#10;76.3        <ins>Subd. 9.</ins> <ins><b>Retirement.</b></ins> <ins>"Retirement" means the period of time after which a former </ins>&#10;76.4    <ins>legislator is entitled to a retirement allowance.</ins>&#10;&#10;<a id="go.10.11.0"></a>76.5        Sec. 11. Minnesota Statutes 2004, section 3A.01, is amended by adding a subdivision &#10;76.6    to read:&#10;76.7        <ins>Subd. 10.</ins> <ins><b>Salary.</b></ins> <ins>(a) "Salary" means the regular compensation payable under law </ins>&#10;76.8    <ins>to a member of the legislature and paid to the person for service as a legislator.</ins>&#10;76.9    <ins>(b) The term includes the monthly compensation paid to the member of the </ins>&#10;76.10   <ins>legislature and the per diem payments paid during a regular or special session to the </ins>&#10;76.11   <ins>member of the legislature.</ins>&#10;76.12   <ins>(c) The term does not include per diem payments paid to a member of the legislature </ins>&#10;76.13   <ins>other than during the regular or special session; additional compensation attributable to a </ins>&#10;76.14   <ins>leadership position under section </ins><ins>3.099, subdivision 3</ins><ins>; living expense payments under </ins>&#10;76.15   <ins>section </ins><ins>3.101</ins><ins>; and special session living expense payments under section </ins><ins>3.103</ins><ins>.</ins>&#10;&#10;<a id="go.10.12.0"></a>76.16       Sec. 12. Minnesota Statutes 2004, section 3A.011, is amended to read:&#10;76.17   <b>3A.011 ADMINISTRATION OF PLAN.</b>&#10;76.18   The <ins>executive director and the board of directors of the </ins>Minnesota State Retirement &#10;76.19   System shall administer the legislators retirement plan in accordance with <ins>this chapter </ins>&#10;76.20   <ins>and </ins>chapter 356A.&#10;&#10;<a id="go.10.13.0"></a>76.21       Sec. 13. Minnesota Statutes 2004, section 3A.02, subdivision 1, is amended to read:&#10;76.22       Subdivision 1. <b>Qualifications.</b>  (a) A former legislator is entitled, upon written &#10;76.23   application to the director, to receive a retirement allowance monthly, if the person:&#10;76.24   (1) has <ins>either </ins>served at least six full years, without regard to the application of &#10;76.25   section 3A.10, subdivision 2, or has served during all or part of four regular sessions as a &#10;76.26   member of the legislature, which service need not be continuous;&#10;76.27   (2) has attained the normal retirement age;&#10;76.28   (3) has retired as a member of the legislature; and&#10;76.29   (4) has made all contributions provided for in section 3A.03, has made payments &#10;76.30   for past service under subdivision 2, or has made payments in lieu of contributions under &#10;76.31   Minnesota Statutes 1992, section 3A.031, <del>prior to </del><ins>before </ins>July 1, 1994.&#10;76.32   (b) <del>This paragraph applies to members of the legislature who terminate service as </del>&#10;76.33   <del>a legislator before July 1, 1997.  For service rendered before the beginning of the 1979 </del>&#10;77.1    <del>legislative session, but not to exceed eight years of service, the retirement allowance is </del>&#10;77.2    <del>an amount equal to five percent per year of service of that member's average monthly </del>&#10;77.3    <del>salary.  For service in excess of eight years rendered before the beginning of the 1979 </del>&#10;77.4    <del>legislative session, and for service rendered after the beginning of the 1979 legislative </del>&#10;77.5    <del>session,</del> <ins>Unless the former legislator has legislative service before January 1, 1979,</ins> the &#10;77.6    retirement allowance is an amount equal to 2-1/2 percent per year of service of that &#10;77.7    member's average monthly salary<del>.</del>&#10;77.8    <del>(c) This paragraph applies to members of the legislature who terminate service as </del>&#10;77.9    <del>a legislator after June 30, 1997.  The retirement allowance is an amount equal to the </del>&#10;77.10   <del>applicable rate or rates under paragraph (b) per year of service of the member's average </del>&#10;77.11   <del>monthly salary</del> <ins>and </ins>adjusted for that person on an actuarial equivalent basis to reflect the &#10;77.12   change in the postretirement interest rate actuarial assumption under section 356.215, &#10;77.13   subdivision 8, from five percent to six percent.  The adjustment must be calculated by or, &#10;77.14   alternatively, the adjustment procedure must be specified by, the actuary retained <del>by the </del>&#10;77.15   <del>Legislative Commission on Pensions and Retirement </del><ins>under section 356.214</ins>.  The purpose &#10;77.16   of this adjustment is to ensure that the total amount of benefits that the actuary predicts &#10;77.17   an individual member will receive over the member's lifetime under this paragraph will &#10;77.18   be the same as the total amount of benefits the actuary predicts the individual member &#10;77.19   would receive over the member's lifetime under the law in effect before enactment of this &#10;77.20   paragraph. <ins>If the former legislator has legislative service before January 1, 1979, the </ins>&#10;77.21   <ins>person's benefit must include the additional benefit amount in effect on January 1,1979, </ins>&#10;77.22   <ins>and adjusted as otherwise provided in this paragraph.</ins>&#10;77.23   <del>(d) </del><ins>(c) </ins>The retirement allowance accrues beginning with the first day of the month &#10;77.24   of receipt of the application, but not before age 60, and for the remainder of the former &#10;77.25   legislator's life, if the former legislator is not serving as a member of the legislature or as a &#10;77.26   constitutional officer <del>or commissioner </del>as defined in section <del>352C.021, subdivisions 2 and </del>&#10;77.27   <del>3 </del><ins>3A.01, subdivision 1c</ins>. The annuity does not begin to accrue <del>prior to </del><ins>before the person's </ins>&#10;77.28   retirement as a legislator.  No annuity payment may be made retroactive for more than 180 &#10;77.29   days before the date <ins>that </ins>the annuity application is filed with the director.&#10;77.30   <del>(e) </del><ins>(d) </ins>Any member who has served during all or part of four regular sessions is &#10;77.31   considered to have served eight years as a member of the legislature.&#10;77.32   <del>(f) </del><ins>(e) </ins>The retirement allowance ceases with the last payment that accrued to the &#10;77.33   retired legislator during the retired legislator's lifetime, except that the surviving spouse, if &#10;77.34   any, is entitled to <ins>receive </ins>the retirement allowance <ins>of the retired legislator </ins>for the calendar &#10;77.35   month in which the retired legislator died.&#10;&#10;<a id="go.10.14.0"></a>78.1        Sec. 14. Minnesota Statutes 2004, section 3A.02, subdivision 1b, is amended to read:&#10;78.2        Subd. 1b. <b>Reduced retirement allowance.</b>  (a) Upon separation from service after &#10;78.3    the beginning of the 1981 legislative session, a former member of the legislature who has &#10;78.4    attained the age set by the board of directors of the Minnesota State Retirement System &#10;78.5    and who is otherwise qualified <del>in accordance with </del><ins>under </ins>subdivision 1 is entitled<ins>,</ins> upon &#10;78.6    making written application on <del>forms supplied </del><ins>a form prescribed </ins>by the director<ins>,</ins> to a &#10;78.7    <ins>reduced </ins>retirement allowance <del>in</del><ins>.  The reduced retirement allowance is</ins> an amount equal &#10;78.8    to the retirement allowance specified in subdivision 1<ins>, paragraph (b), that is</ins> reduced so &#10;78.9    that the reduced <del>annuity </del><ins>allowance </ins>is the actuarial equivalent of the <del>annuity </del><ins>allowance </ins>&#10;78.10   that would be payable if the former member of the legislature deferred receipt of the &#10;78.11   <del>annuity </del><ins>allowance </ins>and the <del>annuity </del><ins>allowance </ins>amount <del>were </del><ins>was </ins>augmented at an annual &#10;78.12   rate of three percent compounded annually from the date the <del>annuity </del><ins>allowance </ins>begins to &#10;78.13   accrue until age 62.&#10;78.14   (b) The age set by the board of directors under paragraph (a) cannot be <del>less </del><ins>an earlier </ins>&#10;78.15   <ins>age </ins>than the early retirement age under section 352.116, subdivision 1a.&#10;78.16   (c) If there is an actuarial cost to the plan of resetting the early retirement age under &#10;78.17   paragraph (a), the retired legislator is required to pay an additional amount to cover the &#10;78.18   full actuarial value.  The additional amount must be paid in a lump sum within 30 days of &#10;78.19   the certification of the amount by the executive director.&#10;78.20   (d) The executive director of the Minnesota State Retirement System shall report &#10;78.21   to the Legislative Commission on Pensions and Retirement on the utilization of this &#10;78.22   provision <ins>annually </ins>on or before September 1<del>, 2000</del>.&#10;&#10;<a id="go.10.15.0"></a>78.23       Sec. 15. Minnesota Statutes 2004, section 3A.02, subdivision 3, is amended to read:&#10;78.24       Subd. 3. <b>Appropriation.</b>  The amounts required for payment of retirement &#10;78.25   allowances provided by this section are appropriated annually to the director from the &#10;78.26   participation <ins>of the legislators retirement plan </ins>in the Minnesota postretirement investment &#10;78.27   fund <del>and shall</del><ins>. The retirement allowance must</ins> be paid monthly to the recipients entitled &#10;78.28   <del>thereto </del><ins>to those retirement allowances</ins>.&#10;&#10;<a id="go.10.16.0"></a>78.29       Sec. 16. Minnesota Statutes 2004, section 3A.02, subdivision 4, is amended to read:&#10;78.30       Subd. 4. <b>Deferred annuities augmentation.</b>  (a) The deferred <del>annuity </del><ins>retirement </ins>&#10;78.31   <ins>allowance </ins>of any former legislator must be augmented as provided herein.&#10;78.32   <ins>(b) </ins>The required reserves applicable to the deferred <del>annuity </del><ins>retirement allowance</ins>, &#10;78.33   determined as of the date the benefit begins to accrue using an appropriate mortality table &#10;78.34   and an interest assumption of six percent, must be augmented from the first of the month &#10;79.1    following <ins>the </ins>termination of <ins>active </ins>service, or July 1, 1973, whichever is later, to the &#10;79.2    first day of the month in which the <del>annuity </del><ins>allowance </ins>begins to accrue, at the <ins>following </ins>&#10;79.3    <ins>annually compounded </ins>rate <del>of five percent per annum compounded annually until January </del>&#10;79.4    <del>1, 1981, and thereafter at the rate of three percent per annum compounded annually until </del>&#10;79.5    <del>January 1 of the year in which the former legislator attains age 55.  From that date to the </del>&#10;79.6    <del>effective date of retirement, the rate is five percent compounded annually.</del> <ins>or rates:</ins>&#10;79.7    <ins>(1) five percent until January 1, 1981;</ins>&#10;79.8    <ins>(2) three percent from January 1, 1981, or from the first day of the month following </ins>&#10;79.9    <ins>the termination of active service, whichever is later, until January 1 of the year in which </ins>&#10;79.10   <ins>the former legislator attains age 55; and</ins>&#10;79.11   <ins>(3) five percent from the period end date under clause (2) to the effective date of </ins>&#10;79.12   <ins>retirement.</ins>&#10;79.13   <del>(b) The retirement allowance of, or the survivor benefit payable on behalf of, a </del>&#10;79.14   <del>former member of the legislature who terminated service before July 1, 1997, which is </del>&#10;79.15   <del>not first payable until after June 30, 1997, must be increased on an actuarial equivalent </del>&#10;79.16   <del>basis to reflect the change in the postretirement interest rate actuarial assumption under </del>&#10;79.17   <del>section 356.215, subdivision 8, from five percent to six percent under a calculation </del>&#10;79.18   <del>procedure and tables adopted by the board of directors of the Minnesota State Retirement </del>&#10;79.19   <del>System and approved by the actuary retained by the Legislative Commission on Pensions </del>&#10;79.20   <del>and Retirement.</del>&#10;&#10;<a id="go.10.17.0"></a>79.21       Sec. 17. Minnesota Statutes 2004, section 3A.02, subdivision 5, is amended to read:&#10;79.22       Subd. 5. <b>Optional annuities.</b>  (a) The board of directors shall establish an optional &#10;79.23   retirement annuity in the form of a joint and survivor annuity and an optional retirement &#10;79.24   annuity in the form of a period certain and life thereafter.  Except as provided in paragraph &#10;79.25   (b), these optional annuity forms must be actuarially equivalent to the normal <del>annuity </del>&#10;79.26   <ins>allowance </ins>computed under this section, plus the actuarial value of any surviving spouse &#10;79.27   benefit otherwise potentially payable at the time of retirement under section 3A.04, &#10;79.28   subdivision 1.  An individual selecting an optional annuity under this subdivision <del>waives </del>&#10;79.29   <ins>and the person's spouse waive </ins>any rights to surviving spouse benefits under section 3A.04, &#10;79.30   subdivision 1.&#10;79.31   (b) If a retired legislator selects the joint and survivor annuity option, the retired &#10;79.32   legislator must receive a normal single-life <del>annuity </del><ins>allowance </ins>if the designated optional &#10;79.33   annuity beneficiary dies before the retired legislator and no reduction may be made in the &#10;79.34   annuity to provide for restoration of the normal single-life <del>annuity </del><ins>allowance </ins>in the event &#10;79.35   of the death of the designated optional annuity beneficiary.&#10;80.1    (c) The surviving spouse of a legislator who has attained at least age 60 and who dies &#10;80.2    while a member of the legislature may elect an optional joint and survivor annuity under &#10;80.3    paragraph (a), in lieu of surviving spouse benefits under section 3A.04, subdivision 1.&#10;&#10;<a id="go.10.18.0"></a>80.4        Sec. 18. Minnesota Statutes 2004, section 3A.03, subdivision 1, is amended to read:&#10;80.5        Subdivision 1. <b>Percentage.</b> <ins>(a) </ins>Every member of the legislature shall contribute &#10;80.6    nine percent of total salary<del>,</del><ins>.</ins>&#10;80.7    <ins>(b) The contribution must be made </ins>by payroll deduction<del>, to </del><ins>and must </ins>be paid into &#10;80.8    the state treasury and deposited in the general fund. <del>It shall be the duty of </del>&#10;80.9    <ins>(c) </ins>The director <del>to </del><ins>must </ins>record the periodic contributions of each member of the &#10;80.10   legislature and <ins>must </ins>credit <del>such </del><ins>each </ins>contribution to the member's account.&#10;&#10;<a id="go.10.19.0"></a>80.11       Sec. 19. Minnesota Statutes 2004, section 3A.03, subdivision 2, is amended to read:&#10;80.12       Subd. 2. <b>Refund.</b>  (a) A former member who has made contributions under &#10;80.13   subdivision 1 and who is no longer a member of the legislature is entitled to receive, upon &#10;80.14   written application to the executive director on a form prescribed by the executive director, &#10;80.15   a refund <ins>from the general fund </ins>of all contributions credited to the member's account with &#10;80.16   interest computed as provided in section 352.22, subdivision 2.&#10;80.17   (b) The refund of contributions as provided in paragraph (a) terminates all rights &#10;80.18   of a former member of the legislature and the survivors of the former member under &#10;80.19   this chapter.&#10;80.20   (c) If the former member of the legislature again becomes a member of the &#10;80.21   legislature after having taken a refund as provided in paragraph (a), the member <del>must be </del>&#10;80.22   <del>considered </del><ins>is </ins>a <del>new </del>member of <del>this plan </del><ins>the unclassified employees retirement program of </ins>&#10;80.23   <ins>the Minnesota State Retirement System</ins>.&#10;80.24   <ins>(d) </ins>However, the member may reinstate the rights and credit for service previously &#10;80.25   forfeited <ins>under this chapter </ins>if the member repays all refunds taken<ins>,</ins> plus interest at an &#10;80.26   annual rate of 8.5 percent compounded annually from the date on which the refund was &#10;80.27   taken to the date on which the refund is repaid.&#10;80.28   <del>(d) </del><ins>(e) </ins>No person may be required to apply for or to accept a refund.&#10;&#10;<a id="go.10.20.0"></a>80.29       Sec. 20. Minnesota Statutes 2004, section 3A.04, subdivision 1, is amended to read:&#10;80.30       Subdivision 1. <b>Surviving spouse.</b> <ins>(a) </ins>Upon the death of a member of the legislature &#10;80.31   while serving as <del>such </del><ins>a </ins>member <del>after June 30, 1973</del>, or upon the death of a former member &#10;80.32   of the legislature with at least <del>the number of </del><ins>six full </ins>years of service <del>as required by section </del>&#10;81.1    <del>3A.02, subdivision 1</del><del>, clause (1) </del><ins>or service in all or part of four regular legislative sessions</ins>, &#10;81.2    the surviving spouse <del>shall be paid </del><ins>is entitled to </ins>a survivor benefit<del> in the amount of </del><ins>.</ins>&#10;81.3    <ins>(b) The surviving spouse benefit is </ins>one-half of the retirement allowance of the &#10;81.4    member of the legislature computed as though the member were at least normal retirement &#10;81.5    age on the date of death and based upon <ins>the member's </ins>allowable service or <ins>upon </ins>eight &#10;81.6    years<ins>,</ins> whichever is greater.  The augmentation provided in section 3A.02, subdivision 4, if &#10;81.7    applicable, <del>shall </del><ins>must </ins>be applied <ins>for the period up </ins>to<ins>, and including,</ins> the month of death.&#10;81.8    <ins>(c) </ins>Upon the death of a former legislator receiving a retirement allowance, the &#10;81.9    surviving spouse <del>shall be </del><ins>is </ins>entitled to one-half of the amount of the <ins>retirement </ins>allowance &#10;81.10   being paid to the legislator. <del>Such </del>&#10;81.11   <ins>(d) The surviving spouse </ins>benefit <del>shall be paid during </del><ins>is payable for </ins>the lifetime &#10;81.12   of the surviving spouse.&#10;&#10;<a id="go.10.21.0"></a>81.13       Sec. 21. Minnesota Statutes 2004, section 3A.04, subdivision 2, is amended to read:&#10;81.14       Subd. 2. <b>Dependent children.</b> <ins>(a) </ins>Upon the death of a member of the legislature &#10;81.15   while serving as a member, or upon the death of a former member of the legislature who &#10;81.16   has rendered at least <del>the number of </del><ins>six full </ins>years of service <del>as required by section </del><del>3A.02, </del>&#10;81.17   <del>subdivision 1</del><del>, clause (1) </del><ins>or service in all or part of four regular legislative sessions </ins>and &#10;81.18   who was not receiving a retirement allowance, each dependent child of the member or &#10;81.19   former legislator <del>shall be </del><ins>is </ins>entitled to receive a survivor benefit in the following amount:&#10;81.20   <ins>(1) for the </ins>first dependent child, a monthly <del>allowance which equals </del><ins>benefit equal to </ins>&#10;81.21   25 percent of the monthly retirement allowance of the member of the legislature or <ins>the </ins>&#10;81.22   former legislator computed as though the member or <ins>the </ins>former legislator had attained at &#10;81.23   least the normal retirement age on the date of death and based upon the average monthly &#10;81.24   salary as of the date of death or as of the date of termination, whichever <del>is applicable</del> &#10;81.25   <ins>applies</ins>, and the <ins>member's </ins>allowable service or eight years<ins>,</ins>whichever is greater;&#10;81.26   <ins>(2) </ins>for each additional dependent child, a monthly <del>allowance which equals </del><ins>benefit </ins>&#10;81.27   <ins>equal to </ins>12-1/2 percent of the monthly retirement allowance of the member or <ins>the </ins>former &#10;81.28   legislator computed as <ins>provided </ins>in <del>the case of the first child </del><ins>clause (1)</ins>; <del>but </del><ins>and </ins>&#10;81.29   <ins>(3) </ins>the total amount paid to the surviving spouse and <ins>to the </ins>dependent <ins>child or </ins>&#10;81.30   children <del>shall</del> <ins>may </ins>not exceed<ins>,</ins> in any one month<ins>,</ins> 100 percent of the monthly retirement &#10;81.31   allowance of the member or <ins>of the </ins>former legislator computed as <ins>provided </ins>in <del>the case of </del>&#10;81.32   <del>the first child </del><ins>clause (1)</ins>.&#10;81.33   <ins>(b) </ins>The augmentation provided in section 3A.02, subdivision 4, if applicable, &#10;81.34   <del>shall be applied </del><ins>applies </ins>from the first day of the month next following the date of <ins>the </ins>&#10;82.1    termination of <ins>the person from </ins>service as a member of the legislature to the month of &#10;82.2    <ins>the </ins>death <ins>of the person</ins>.&#10;82.3    <ins>(c) </ins>Upon the death of a former legislator who was receiving a retirement allowance, &#10;82.4    <del>the </del><ins>a </ins>surviving dependent child <del>shall be </del><ins>is </ins>entitled to the applicable percentage specified &#10;82.5    <del>above </del><ins>in paragraph (a), clause (1) or (2), whichever applies,</ins> of the amount of the &#10;82.6    allowance which was paid to the former legislator for the month immediately <del>prior to </del>&#10;82.7    <ins>before </ins>the date of death <ins>of the former legislator</ins>.&#10;82.8    <ins>(d) </ins>The payments for dependent children <del>shall </del><ins>must </ins>be made to the surviving spouse &#10;82.9    or <ins>to </ins>the guardian of the estate of the dependent children, if there is one.&#10;&#10;<a id="go.10.22.0"></a>82.10       Sec. 22. Minnesota Statutes 2004, section 3A.04, subdivision 3, is amended to read:&#10;82.11       Subd. 3. <b>Payment.</b>  The surviving <del>spouse's </del><ins>spouse </ins>and dependent <del>children's </del><ins>child </ins>&#10;82.12   <ins>or children </ins>survivor benefits payable under this section <del>shall be paid </del><ins>are payable </ins>by the &#10;82.13   director monthly in the same manner as retirement allowances are authorized to be paid &#10;82.14   by this chapter.&#10;&#10;<a id="go.10.23.0"></a>82.15       Sec. 23. Minnesota Statutes 2004, section 3A.04, subdivision 4, is amended to read:&#10;82.16       Subd. 4. <b>Death refunds.</b> <ins>(a) </ins>Upon the death of a member of the legislature or &#10;82.17   <ins>of a </ins>former legislator who was not receiving a retirement allowance<del>,</del> without <ins>leaving </ins>&#10;82.18   either a surviving spouse or <ins>a </ins>dependent <ins>child or dependent </ins>children, the last designated &#10;82.19   beneficiary named on a form <ins>that was </ins>filed with the director before the death of the &#10;82.20   legislator, or if no designation is filed, the estate of the member or <ins>the </ins>former legislator, &#10;82.21   upon application, <del>shall be </del><ins>is </ins>entitled to a refund<ins>.</ins>&#10;82.22   <ins>(b) The refund is the amount of contributions credited to the person's account </ins>plus &#10;82.23   interest as provided in section 3A.03, subdivision 2, <del>clause (2) </del><ins>paragraph (a)</ins>.&#10;&#10;<a id="go.10.24.0"></a>82.24       Sec. 24. Minnesota Statutes 2004, section 3A.04, is amended by adding a subdivision &#10;82.25   to read:&#10;82.26       <ins>Subd. 5.</ins> <ins><b>Appropriation.</b></ins> <ins>The survivor benefits and the death refunds authorized by </ins>&#10;82.27   <ins>this section are appropriated to the director from the general fund when they are due and </ins>&#10;82.28   <ins>payable.</ins>&#10;&#10;<a id="go.10.25.0"></a>82.29       Sec. 25. Minnesota Statutes 2004, section 3A.05, is amended to read:&#10;82.30   <b>3A.05 APPLICATION FOR SURVIVOR BENEFIT.</b>&#10;82.31   <ins>(a) </ins>Applications for survivor benefits <del>pursuant to </del><ins>under </ins>section 3A.04 <del>shall </del><ins>must </ins>be &#10;82.32   filed with the director by the surviving spouse and dependent <ins>child or </ins>children entitled &#10;83.1    to benefits <del>pursuant to </del><ins>under </ins>section 3A.04, or by the guardian of the estate, if there is &#10;83.2    one, of the dependent <ins>child or </ins>children.&#10;83.3    <ins>(b) </ins>Survivor benefits <del>shall </del>accrue as of the first day of the month following the death &#10;83.4    of the member of the legislature or former legislator and payments <del>shall </del>commence as &#10;83.5    of the first of the month next following the filing of the application, and <del>shall be </del><ins>are </ins>&#10;83.6    retroactive to the date the benefit accrues<del>; provided, however, that no payment shall be </del>&#10;83.7    <del>retroactive for more than </del><ins>or the first of the month occurring </ins>12 months <del>prior to </del><ins>before </ins>the &#10;83.8    month <ins>in which </ins>the application is filed with the director<ins>, whichever is earlier</ins>.&#10;&#10;<a id="go.10.26.0"></a>83.9        Sec. 26. Minnesota Statutes 2004, section 3A.07, is amended to read:&#10;83.10   <b>3A.07 APPLICATION.</b>&#10;83.11   (a) Except as provided in paragraph (b), this chapter applies to members of the &#10;83.12   legislature in service after July 1, 1965, who otherwise meet the requirements of this &#10;83.13   chapter.&#10;83.14   (b) Members of the legislature who were elected for the first time after June 30, &#10;83.15   1997, or members of the legislature who were elected before July 1, 1997, and who, after &#10;83.16   July 1, 1998, elect not to be members of the plan established by this chapter are covered &#10;83.17   by the unclassified employees retirement program governed by chapter 352D.&#10;83.18   (c) The post-July 1, 1998, coverage election under paragraph (b) is irrevocable &#10;83.19   and must be made on a form prescribed by the director. <ins>The second chance referendum </ins>&#10;83.20   <ins>election under Laws 2002, chapter 392, article 15, also is irrevocable.</ins>&#10;&#10;<a id="go.10.27.0"></a>83.21       Sec. 27. Minnesota Statutes 2004, section 3A.10, subdivision 1, is amended to read:&#10;83.22       Subdivision 1. <b>Service credit for legislative term.</b> <ins>(a) </ins>In the case of a member of &#10;83.23   the house of representatives<ins>,</ins> one full term of office <del>shall </del><ins>must </ins>be considered two full years &#10;83.24   <ins>of </ins>service<ins>,</ins> notwithstanding the fact that the oath of office <del>may be </del><ins>was </ins>taken on different &#10;83.25   days each biennium.&#10;83.26   <ins>(b) </ins>In the case of a member of the senate, one full term of office <del>shall </del><ins>must </ins>be &#10;83.27   considered four full years <ins>of </ins>service<ins>,</ins> notwithstanding the fact that the oath of office <del>may </del>&#10;83.28   <del>be </del><ins>was </ins>taken on different days at the start of each term.&#10;83.29   <ins>(c) </ins>For purposes of this chapter, a legislative term <del>shall </del><ins>must </ins>be deemed to &#10;83.30   commence on January <del>1st </del><ins>1 </ins>and to end on December <del>31st </del><ins>31</ins>.&#10;&#10;<a id="go.10.28.0"></a>83.31       Sec. 28. Minnesota Statutes 2004, section 3A.12, is amended to read:&#10;83.32   <b>3A.12 COVERAGE BY MORE THAN ONE RETIREMENT SYSTEM OR </b>&#10;83.33   <b>ASSOCIATION.</b>&#10;84.1        Subdivision 1. <b>Entitlement to annuity.</b> <ins>(a) </ins>Any legislator who has been <del>an </del>&#10;84.2    <del>employee covered by </del><ins>a member of a retirement plan listed in paragraph (b) is entitled, </ins>&#10;84.3    <ins>when otherwise qualified, to a retirement allowance or annuity from each plan if the total </ins>&#10;84.4    <ins>allowable service in all plans or in any two of these plans totals ten or more years.</ins>&#10;84.5    <ins>(b) This section applies to any retirement plan or program administered by </ins>the &#10;84.6    Minnesota State Retirement System, or <del>a member of </del><ins>any retirement plan administered </ins>&#10;84.7    <ins>by </ins>the Public Employees Retirement Association<ins>,</ins> including the Public Employees &#10;84.8    Retirement Association police and fire fund, or the Teachers Retirement Association, or &#10;84.9    the Minneapolis employees retirement <del>fund </del><ins>plan</ins>, or the State Patrol retirement <del>fund </del>&#10;84.10   <ins>plan</ins>, or any other public employee retirement system in the state of Minnesota having a &#10;84.11   like provision <del>but excluding all</del><ins>.</ins>&#10;84.12   <ins>(c) This section does not apply to </ins>other <del>funds </del><ins>retirement plans </ins>providing benefits for &#10;84.13   police or firefighters<del>, shall be entitled when qualified to an annuity from each fund if the </del>&#10;84.14   <del>total allowable service for which the legislator has credit in all funds or in any two of these </del>&#10;84.15   <del>funds totals ten or more years, provided</del><ins>.</ins>&#10;84.16   <ins>(d) </ins>No portion of the allowable service upon which the retirement annuity from one &#10;84.17   <del>fund </del><ins>plan </ins>is based is again used in the computation for benefits from another <del>fund </del><ins>plan</ins>.  &#10;84.18   The annuity from each <del>fund shall </del><ins>plan must </ins>be determined by the appropriate provisions &#10;84.19   of the law<ins>,</ins> except that the requirement that a person must have <del>at least ten </del><ins>a minimum </ins>&#10;84.20   <ins>number of </ins> years <ins>of </ins>allowable service in the respective system or association <del>shall </del><ins>does </ins>not &#10;84.21   apply for the purposes of this section <del>provided </del><ins>if </ins>the combined service in two or more &#10;84.22   of these <del>funds</del> <ins>plans </ins>equals ten or more years.  The augmentation of deferred annuities &#10;84.23   provided in section 3A.02, subdivision 4, <del>shall apply </del><ins>applies </ins>to the annuities accruing &#10;84.24   <del>hereunder </del><ins>under this section</ins>.&#10;84.25       Subd. 2. <b>Refund repayment.</b> <del>Any </del><ins>A </ins>former legislator who has received a refund as &#10;84.26   provided in section 3A.03, subdivision 2, who is a currently contributing member of a &#10;84.27   retirement <del>fund </del><ins>plan </ins>specified in subdivision 1<ins>, paragraph (b)</ins>, may repay the refund as &#10;84.28   provided in section 3A.03, subdivision 2. <del>Any </del><ins>A </ins>member of the legislature who has &#10;84.29   received a refund from any of the <del>funds </del><ins>retirement plans </ins>specified in subdivision 1<del>,</del> may &#10;84.30   repay the refund to the respective <del>fund </del><ins>plan </ins>under such terms and conditions consistent &#10;84.31   with the law governing <del>such fund </del><ins>the retirement plan </ins>if the law governing <del>such fund </del><ins>the </ins>&#10;84.32   <ins>plan </ins>permits the repayment of refunds.  If the total amount to be repaid, including principal &#10;84.33   and interest exceeds $2,000, repayment maybe made in three equal installments over a &#10;84.34   period of 18 months, with <ins>the </ins>interest accrued during the period of <ins>the </ins>repayment added &#10;84.35   to the final installment.&#10;&#10;<a id="go.10.29.0"></a>85.1        Sec. 29. <ins><b>[352C.001] RETIREMENT PLAN; APPLICATION.</b></ins>&#10;85.2    <ins>(a) The retirement plan applicable to a former constitutional officer who was first </ins>&#10;85.3    <ins>elected to a constitutional office after July 1, 1967, and before July 1, 1997, is the </ins>&#10;85.4    <ins>applicable portions of this chapter and chapter 356 in effect on the date on which the </ins>&#10;85.5    <ins>person terminated active service as a constitutional officer.</ins>&#10;85.6    <ins>(b) Nothing in this section or section 30 or 33, subdivision 2, is intended to reduce </ins>&#10;85.7    <ins>the benefits of former constitutional officers or to adversely modify their eligibility for </ins>&#10;85.8    <ins>benefits in effect as of the day before the effective date of this section.</ins>&#10;&#10;<a id="go.10.30.0"></a>85.9        Sec. 30. Minnesota Statutes 2004, section 352C.091, subdivision 1, is amended to read:&#10;85.10       Subdivision 1. <b>Administrative agency and standards.</b> <del>This chapter </del><ins>(a) The elected </ins>&#10;85.11   <ins>officers retirement plan </ins>must be administered by the <ins>board of directors and the executive </ins>&#10;85.12   <ins>director of the </ins>Minnesota State Retirement System.&#10;85.13   <ins>(b) </ins>The elected state officers retirement plan must be administered consistent with &#10;85.14   <del>this chapter </del><ins>the applicable statutory provisions governing the plan </ins>and chapters 356 and &#10;85.15   356A.&#10;&#10;<a id="go.10.31.0"></a>85.16       Sec. 31. Minnesota Statutes 2004, section 352C.10, is amended to read:&#10;85.17   <b>352C.10 BENEFIT ADJUSTMENTS.</b>&#10;85.18   Retirement allowances payable to retired constitutional officers <del>pursuant to section </del>&#10;85.19   <del>352C.031</del><del> </del>and surviving spouse benefits payable <del>pursuant to section </del><del>352C.04</del><del>, shall </del><ins>must </ins>&#10;85.20   be adjusted in the same manner, at the same times and in the same amounts as are benefits &#10;85.21   payable from the Minnesota postretirement investment fund to retirees of a participating &#10;85.22   public pension fund.&#10;&#10;<a id="go.10.32.0"></a>85.23       Sec. 32. Minnesota Statutes 2004, section 352D.02, subdivision 1, is amended to read:&#10;85.24       Subdivision 1. <b>Coverage.</b>  (a) Employees enumerated in paragraph (c), clauses (2), &#10;85.25   (3), (4), and (6) to (14), if they are in the unclassified service of the state or Metropolitan &#10;85.26   Council and are eligible for coverage under the general state employees retirement plan &#10;85.27   under chapter 352, are participants in the unclassified plan under this chapter unless the &#10;85.28   employee gives notice to the executive director of the Minnesota State Retirement System &#10;85.29   within one year following the commencement of employment in the unclassified service &#10;85.30   that the employee desires coverage under the general state employees retirement plan.  &#10;85.31   For the purposes of this chapter, an employee who does not file notice with the executive &#10;85.32   director is deemed to have exercised the option to participate in the unclassified plan.&#10;86.1    (b) Persons referenced in paragraph (c), <del>clauses (1) and </del><ins>clause </ins>(5), are participants &#10;86.2    in the unclassified program under this chapter unless the person <del>is</del> <ins>was </ins>eligible to elect &#10;86.3    different coverage under section 3A.07 <del>or </del><del>352C.011</del> and<del>, after July 1,1998, elects</del> <ins>elected </ins>&#10;86.4    retirement coverage by the applicable alternative retirement plan.  Persons referenced &#10;86.5    in paragraph (c), clause (15), are participants in the unclassified program under this &#10;86.6    chapter for judicial employment in excess of the service credit limit in section 490.121, &#10;86.7    subdivision 22.&#10;86.8    (c) Enumerated employees and referenced persons are:&#10;86.9    (1) the governor, the lieutenant governor, the secretary of state, the state auditor, &#10;86.10   and the attorney general;&#10;86.11   (2) an employee in the Office of the Governor, Lieutenant Governor, Secretary &#10;86.12   of State, State Auditor, Attorney General;&#10;86.13   (3) an employee of the State Board of Investment;&#10;86.14   (4) the head of a department, division, or agency created by statute in the unclassified &#10;86.15   service, an acting department head subsequently appointed to the position, or an employee &#10;86.16   enumerated in section 15A.0815 or 15A.083, subdivision 4;&#10;86.17   (5) a member of the legislature;&#10;86.18   (6) a full-time unclassified employee of the legislature or a commission or agency of &#10;86.19   the legislature who is appointed without a limit on the duration of the employment or a &#10;86.20   temporary legislative employee having shares in the supplemental retirement fund as a &#10;86.21   result of former employment covered by this chapter, whether or not eligible for coverage &#10;86.22   under the Minnesota State Retirement System;&#10;86.23   (7) a person who is employed in a position established under section 43A.08, &#10;86.24   subdivision 1, clause (3), or in a position authorized under a statute creating or establishing &#10;86.25   a department or agency of the state, which is at the deputy or assistant head of department &#10;86.26   or agency or director level;&#10;86.27   (8) the regional administrator, or executive director of the Metropolitan Council, &#10;86.28   general counsel, division directors, operations managers, and other positions as designated &#10;86.29   by the council, all of which may not exceed 27 positions at the council and the chair;&#10;86.30   (9) the executive director, associate executive director, and not to exceed nine &#10;86.31   positions of the Higher Education Services Office in the unclassified service, as designated &#10;86.32   by the Higher Education Services Office before January 1, 1992, or subsequently &#10;86.33   redesignated with the approval of the board of directors of the Minnesota State Retirement &#10;86.34   System, unless the person has elected coverage by the individual retirement account &#10;86.35   plan under chapter 354B;&#10;87.1    (10) the clerk of the appellate courts appointed under article VI, section 2, of the &#10;87.2    Constitution of the state of Minnesota;&#10;87.3    (11) the chief executive officers of correctional facilities operated by the Department &#10;87.4    of Corrections and of hospitals and nursing homes operated by the Department of Human &#10;87.5    Services;&#10;87.6    (12) an employee whose principal employment is at the state ceremonial house;&#10;87.7    (13) an employee of the Minnesota Educational Computing Corporation;&#10;87.8    (14) an employee of the State Lottery who is covered by the managerial plan &#10;87.9    established under section 43A.18, subdivision 3; and&#10;87.10   (15) a judge who has exceeded the service credit limit in section 490.121, &#10;87.11   subdivision 22.&#10;&#10;<a id="go.10.33.0"></a>87.12       Sec. 33. <ins><b>REPEALER; EFFECT ON BENEFIT COVERAGE.</b></ins>&#10;87.13       <ins>Subdivision 1.</ins> <ins><b>Legislators retirement plan; repealed as obsolete.</b></ins> <ins> Minnesota </ins>&#10;87.14   <ins>Statutes 2004, sections 3A.01, subdivisions 3, 4, 6a, and 7; 3A.02, subdivision 2; 3A.04, </ins>&#10;87.15   <ins>subdivision 1a; and 3A.09,</ins><ins> are repealed.</ins>&#10;87.16       <ins>Subd. 2.</ins> <ins><b>Elective state officers retirement plan; repealed as obsolete.</b></ins> <ins> Minnesota </ins>&#10;87.17   <ins>Statutes 2004, sections 352C.01; 352C.011; 352C.021, subdivisions 1, 2, 3, 4, 5, 6, and </ins>&#10;87.18   <ins>7; 352C.031, subdivisions 1, 2, 4, 5, and 6; 352C.033; 352C.04; 352C.051; 352C.09; </ins>&#10;87.19   <ins>and 352C.091, subdivisions 2 and 3,</ins><ins>  and Minnesota Statutes 2005 Supplement, section </ins>&#10;87.20   <ins>352C.021, subdivision 1a,</ins><ins> are repealed.</ins>&#10;&#10;<a id="go.10.34.0"></a>87.21       Sec. 34. <ins><b>EFFECTIVE DATE.</b></ins>&#10;87.22   <ins>Sections 1 to 33 are effective July 1, 2006.</ins>&#10;&#10;<a id="go.11.0.0"></a>87.23                                          <b>ARTICLE 11</b>&#10;87.24                                  <b>JUDGES RETIREMENT PLAN AND</b>&#10;87.25                          <b>BOARD ON JUDICIAL STANDARDS RECODIFICATION</b>&#10;&#10;<a id="go.11.1.0"></a>87.26       Section 1. Minnesota Statutes 2004, section 490.121, subdivision 1, is amended to read:&#10;87.27       Subdivision 1. <b>Scope.</b>  For purposes of sections 490.121 to 490.132, <ins>unless the </ins>&#10;87.28   <ins>context clearly indicates otherwise, each of the </ins>terms defined in this section <del>have </del><ins>has </ins>the &#10;87.29   <del>meanings </del><ins>meaning </ins>given <del>them unless the context clearly indicates otherwise </del><ins>it</ins>.&#10;&#10;<a id="go.11.2.0"></a>87.30       Sec. 2. Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision &#10;87.31   to read:&#10;88.1        <ins>Subd. 2a.</ins> <ins><b>Actuarial equivalent.</b></ins> <ins>"Actuarial equivalent" means the condition of one </ins>&#10;88.2    <ins>annuity or benefit having an equal actuarial present value as another annuity or benefit, </ins>&#10;88.3    <ins>determined as of a given date with each actuarial present value based on the appropriate </ins>&#10;88.4    <ins>mortality table adopted by the board of directors of the Minnesota State Retirement </ins>&#10;88.5    <ins>System based on the experience of the fund as recommended by the actuary retained </ins>&#10;88.6    <ins>under section </ins><ins>356.214</ins><ins> and approved under section </ins><ins>356.215</ins><ins>, subdivision 18, and using the </ins>&#10;88.7    <ins>applicable preretirement or postretirement interest rate assumption specified in section </ins>&#10;88.8    <ins>356.215, subdivision 8.</ins>&#10;&#10;<a id="go.11.3.0"></a>88.9        Sec. 3. Minnesota Statutes 2005 Supplement, section 490.121, subdivision 4, is &#10;88.10   amended to read:&#10;88.11       Subd. 4. <b>Allowable service.</b> (a) "Allowable service" means any calendar month, &#10;88.12   subject to the service credit limit in subdivision 22, served as a judge at any time, <del>or</del><ins> during </ins>&#10;88.13   <ins>which the judge received compensation for that service from the state, municipality, </ins>&#10;88.14   <ins>or county, whichever applies, and for which the judge made any required member </ins>&#10;88.15   <ins>contribution. It also includes any month</ins> served as a referee in probate for all referees in &#10;88.16   probate who were in office <del>prior to</del><ins> before</ins> January 1, 1974.&#10;88.17   (b) "Allowable service" also means a period of authorized leave of absence for &#10;88.18   which the judge has made a payment in lieu of contributions, not in an amount in excess &#10;88.19   of the service credit limit under subdivision 22. To obtain the service credit, the judge &#10;88.20   shall pay an amount equal to the normal cost of the judges retirement plan on the date of &#10;88.21   return from the leave of absence, as determined in the most recent actuarial report for the &#10;88.22   plan filed with the Legislative Commission on Pensions and Retirement, multiplied by the &#10;88.23   judge's average monthly salary rate during the authorized leave of absence and multiplied &#10;88.24   by the number of months of the authorized leave of absence, plus annual compound &#10;88.25   interest at the rate of 8.5 percent from the date of the termination of the leave to the date &#10;88.26   on which payment is made. The payment must be made within one year of the date on &#10;88.27   which the authorized leave of absence terminated. Service credit for an authorized leave &#10;88.28   of absence is in addition to a uniformed service leave under section 490.1211.&#10;88.29   <ins>(c) "Allowable service" does not mean service as a retired judge.</ins>&#10;&#10;<a id="go.11.4.0"></a>88.30       Sec. 4. Minnesota Statutes 2004, section 490.121, subdivision 6, is amended to read:&#10;88.31       Subd. 6. <b>Annuity.</b>  "Annuity" means the payments <ins>that are </ins>made each year to an &#10;88.32   annuitant from the judges' retirement fund<del>, pursuant to the provisions of </del><ins>under </ins>sections &#10;88.33   490.121 to 490.132.&#10;&#10;<a id="go.11.5.0"></a>89.1        Sec. 5. Minnesota Statutes 2004, section 490.121, subdivision 7, is amended to read:&#10;89.2        Subd. 7. <b>Annuitant.</b>  "Annuitant" means a <ins>former </ins>judge, <ins>a </ins>surviving spouse<ins>,</ins> or <ins>a </ins>&#10;89.3    dependent child <ins>who is </ins>entitled to <ins>and is receiving </ins>an annuity under <del>the provisions of </del>&#10;89.4    sections 490.121 to 490.132.&#10;&#10;<a id="go.11.6.0"></a>89.5        Sec. 6. Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision &#10;89.6    to read:&#10;89.7        <ins>Subd. 7a.</ins> <ins><b>Approved actuary.</b></ins> <ins>"Approved actuary" means an actuary as defined in </ins>&#10;89.8    <ins>section </ins><ins>356.215, subdivision 1</ins><ins>, paragraph (c).</ins>&#10;&#10;<a id="go.11.7.0"></a>89.9        Sec. 7. Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision &#10;89.10   to read:&#10;89.11       <ins>Subd. 7b.</ins> <ins><b>Court.</b></ins> <ins>"Court" means any court of this state that is established by the </ins>&#10;89.12   <ins>Minnesota Constitution.</ins>&#10;&#10;<a id="go.11.8.0"></a>89.13       Sec. 8. Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision &#10;89.14   to read:&#10;89.15       <ins>Subd. 7c.</ins> <ins><b>Dependent surviving child.</b></ins> <ins>"Dependent surviving child" means any </ins>&#10;89.16   <ins>natural or adopted child of a deceased judge who has not reached the age of 18 years, or </ins>&#10;89.17   <ins>having reached the age of 18, is under age 22 and who is a full-time student throughout </ins>&#10;89.18   <ins>the normal school year, is unmarried, and is actually dependent for more than one-half of </ins>&#10;89.19   <ins>the child's support upon the judge for a period of at least 90 days before the judge's death. </ins>&#10;89.20   <ins>It also includes any natural child of the judge who was born after the death of the judge.</ins>&#10;&#10;<a id="go.11.9.0"></a>89.21       Sec. 9. Minnesota Statutes 2004, section 490.121, subdivision 13, is amended to read:&#10;89.22       Subd. 13. <b>Disability.</b>  "Disability" means <ins>the </ins>permanent inability <ins>of a judge to </ins>&#10;89.23   <ins>continue </ins>to perform the functions of judge by reason of <ins>a </ins>physical or mental impairment &#10;89.24   resulting from <ins>a </ins>sickness or <ins>an </ins>injury.&#10;&#10;<a id="go.11.10.0"></a>89.25       Sec. 10. Minnesota Statutes 2004, section 490.121, subdivision 14, is amended to read:&#10;89.26       Subd. 14. <b>Disability retirement date.</b>  "Disability retirement date" means the last &#10;89.27   day of the first month after <ins>the date on </ins>which the governor determines, upon <ins>receipt of the </ins>&#10;89.28   voluntary application by the judge or otherwise, that a judge suffers from a disability.&#10;&#10;<a id="go.11.11.0"></a>89.29       Sec. 11. Minnesota Statutes 2004, section 490.121, subdivision 15, is amended to read:&#10;90.1        Subd. 15. <b>Disability retirement annuity.</b>  "Disability retirement annuity" means an &#10;90.2    annuity to which a judge is entitled under section 490.124, subdivisions 1 and 4<ins>,</ins> after <ins>the </ins>&#10;90.3    retirement <del>for reason </del>of <ins>the judge because of a </ins>disability.&#10;&#10;<a id="go.11.12.0"></a>90.4        Sec. 12. Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision &#10;90.5    to read:&#10;90.6        <ins>Subd. 15a.</ins> <ins><b>Early retirement date.</b></ins> <ins>"Early retirement date" means the last day of </ins>&#10;90.7    <ins>the month after a judge attains the age of 60 but before the judge reaches the normal </ins>&#10;90.8    <ins>retirement date.</ins>&#10;&#10;<a id="go.11.13.0"></a>90.9        Sec. 13. Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision &#10;90.10   to read:&#10;90.11       <ins>Subd. 15b.</ins> <ins><b>Early retirement annuity.</b></ins> <ins>"Early retirement annuity" means an annuity </ins>&#10;90.12   <ins>to which a judge is entitled under section </ins><ins>490.124</ins><ins>, subdivisions 1 and 3, upon retirement </ins>&#10;90.13   <ins>by the judge at an early retirement date.</ins>&#10;&#10;<a id="go.11.14.0"></a>90.14       Sec. 14. Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision &#10;90.15   to read:&#10;90.16       <ins>Subd. 21b.</ins> <ins><b>Judge.</b></ins> <ins>"Judge" means a judge or a justice of any court as defined </ins>&#10;90.17   <ins>under subdivision 7b.</ins>&#10;&#10;<a id="go.11.15.0"></a>90.18       Sec. 15. Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision &#10;90.19   to read:&#10;90.20       <ins>Subd. 21c.</ins> <ins><b>Judges' retirement fund; retirement fund; fund.</b></ins> <ins>"Judges' retirement </ins>&#10;90.21   <ins>fund," "retirement fund," or "fund" means the fund created by section </ins><ins>490.123</ins><ins>.</ins>&#10;&#10;<a id="go.11.16.0"></a>90.22       Sec. 16. Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision &#10;90.23   to read:&#10;90.24       <ins>Subd. 21d.</ins> <ins><b>Mandatory retirement date.</b></ins> <ins>"Mandatory retirement date" means the </ins>&#10;90.25   <ins>last day of the month in which a judge has attained 70 years of age.</ins>&#10;&#10;<a id="go.11.17.0"></a>90.26       Sec. 17. Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision &#10;90.27   to read:&#10;90.28       <ins>Subd. 21e.</ins> <ins><b>Normal retirement annuity.</b></ins> <ins>Except as otherwise provided in sections </ins>&#10;90.29   <ins>490.121</ins><ins> to </ins><ins>490.132</ins><ins>, "normal retirement annuity" means an annuity to which a judge is </ins>&#10;91.1    <ins>entitled under section </ins><ins>490.124, subdivision 1</ins><ins>, upon retirement on or after the normal </ins>&#10;91.2    <ins>retirement date of the judge.</ins>&#10;&#10;<a id="go.11.18.0"></a>91.3        Sec. 18. Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision &#10;91.4    to read:&#10;91.5        <ins>Subd. 21f.</ins> <ins><b>Normal retirement date.</b></ins> <ins>"Normal retirement date" means the last day </ins>&#10;91.6    <ins>of the month in which a judge attains the age of 65.</ins>&#10;&#10;<a id="go.11.19.0"></a>91.7        Sec. 19. Minnesota Statutes 2004, section 490.121, subdivision 22, is amended to read:&#10;91.8        Subd. 22. <b>Service credit limit.</b>  "Service credit limit" means the greater of:  (1) &#10;91.9    24 years of allowable service under <ins>this </ins>chapter <del>490</del>; or (2) for judges with allowable &#10;91.10   service rendered <del>prior to </del><ins>before </ins>July 1, 1980, the number of years of allowable service &#10;91.11   under chapter 490, which, when multiplied by the percentage listed in section 356.315, &#10;91.12   subdivision 7 or 8, whichever is applicable to each year of service, equals 76.8.&#10;&#10;<a id="go.11.20.0"></a>91.13       Sec. 20. Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision &#10;91.14   to read:&#10;91.15       <ins>Subd. 23.</ins> <ins><b>Surviving spouse.</b></ins> <ins>"Surviving spouse" means the surviving legally </ins>&#10;91.16   <ins>married spouse of a deceased judge.</ins>&#10;&#10;<a id="go.11.21.0"></a>91.17       Sec. 21. Minnesota Statutes 2004, section 490.121, is amended by adding a subdivision &#10;91.18   to read:&#10;91.19       <ins>Subd. 24.</ins> <ins><b>Survivor's annuity.</b></ins> <ins>"Survivor's annuity" means an annuity to which a </ins>&#10;91.20   <ins>surviving spouse or dependent child is entitled under section </ins><ins>490.124, subdivision 9</ins><ins>.</ins>&#10;&#10;<a id="go.11.22.0"></a>91.21       Sec. 22. Minnesota Statutes 2004, section 490.122, is amended to read:&#10;91.22   <b>490.122 ADMINISTRATION OF JUDGES' RETIREMENT.</b>&#10;91.23       <ins>Subdivision 1.</ins> <ins><b>Administration.</b></ins> The policy-making, management, and &#10;91.24   administrative functions governing the operation of the judges' retirement fund and the &#10;91.25   administration of <del>sections </del><del>490.121</del><del> to </del><del>490.132</del><del> </del><ins>this chapter </ins>are vested in the board of &#10;91.26   directors and executive director of the Minnesota State Retirement System <del>with such</del><ins>.  In </ins>&#10;91.27   <ins>administering the plan and fund, the board and the director have the same</ins> duties, authority, &#10;91.28   and responsibility as are provided in chapter 352.&#10;91.29       <ins>Subd. 2.</ins> <ins><b>Inapplicability of certain laws.</b></ins> Except as otherwise specified, no &#10;91.30   provision of chapter 352 applies to the judges' retirement fund or any judge.&#10;92.1        <ins>Subd. 3.</ins> <ins><b>Fiduciary responsibility.</b></ins> Fiduciary activities <del>of </del><ins>relating to </ins>the uniform &#10;92.2    <ins>judges' </ins>retirement <del>and Survivors' Annuities for Judges </del><ins>plan </ins>must be undertaken in a &#10;92.3    manner consistent with chapter 356A.&#10;&#10;<a id="go.11.23.0"></a>92.4        Sec. 23. Minnesota Statutes 2004, section 490.123, subdivision 1, is amended to read:&#10;92.5        Subdivision 1. <b>Fund creation; revenue and authorized disbursements.</b> <ins>(a) There </ins>&#10;92.6    <ins>is created a special fund to be known as </ins>the "judges' retirement fund<ins>.</ins>"&#10;92.7    <ins>(b) The judges' retirement fund </ins>must be credited with all contributions<del>,</del><ins>;</ins> all interest, &#10;92.8    <ins>dividends, and other investment proceeds;</ins> and all other income authorized by <ins>this chapter </ins>&#10;92.9    <ins>or other applicable </ins>law.&#10;92.10   <ins>(c) </ins>From this fund there are appropriated the payments authorized by sections &#10;92.11   490.121 to 490.132, in the amounts and at the times provided, including the necessary and &#10;92.12   reasonable expenses of the Minnesota State Retirement System in administering the fund &#10;92.13   and the transfers to the Minnesota postretirement investment fund.&#10;&#10;<a id="go.11.24.0"></a>92.14       Sec. 24. Minnesota Statutes 2004, section 490.123, subdivision 1a, is amended to read:&#10;92.15       Subd. 1a. <b>Member contribution rates.</b>  (a) A judge who is covered by the federal &#10;92.16   Old Age, Survivors, Disability, and Health Insurance Program <ins>and </ins>whose service does not &#10;92.17   exceed the service credit limit in section 490.121, subdivision 22, shall contribute to the &#10;92.18   fund from each salary payment a sum equal to 8.00 percent of salary.&#10;92.19   (b) <del>A judge not so covered whose service does not exceed the service credit limit in </del>&#10;92.20   <del>section </del><del>490.121, subdivision 22</del><del>, shall contribute to the fund from each salary payment a </del>&#10;92.21   <del>sum equal to </del><del>8.15</del><del> percent of salary.</del>&#10;92.22   <del>(c) </del>The contribution under this subdivision is payable by salary deduction. &#10;92.23   <ins>The deduction must be made by the state court administrator under section </ins><ins>352.04</ins><ins>, </ins>&#10;92.24   <ins>subdivisions 4, 5, and 8.</ins>&#10;&#10;<a id="go.11.25.0"></a>92.25       Sec. 25. Minnesota Statutes 2004, section 490.123, subdivision 1b, is amended to read:&#10;92.26       Subd. 1b. <b>Employer contribution rate.</b> <ins>(a) </ins>The employer contribution rate to the &#10;92.27   fund on behalf of a judge is 20.5 percent of salary <del>and</del><ins>.  The employer obligation</ins> continues &#10;92.28   after a judge exceeds the service credit limit in section 490.121, subdivision 22.&#10;92.29   <ins>(b) </ins>The employer contribution must be paid by the state court administrator <del>and</del><ins>. </ins>&#10;92.30   <ins>The employer contribution</ins> is payable at the same time as member contributions <ins>are made </ins>&#10;92.31   under subdivision 1a or <ins>as </ins>employee contributions <ins>are made </ins>to the unclassified <del>plan in </del>&#10;92.32   <ins>program governed by </ins>chapter 352D for judges whose service exceeds the limit in section &#10;92.33   490.121, subdivision 22, are remitted.&#10;&#10;<a id="go.11.26.0"></a>93.1        Sec. 26. Minnesota Statutes 2004, section 490.123, subdivision 1c, is amended to read:&#10;93.2        Subd. 1c. <b>Additional employer contribution.</b> <del>In the event that </del><ins>If </ins>the employer &#10;93.3    contribution under subdivision 1b and the assets of the judges retirement fund are &#10;93.4    insufficient to meet reserve transfers to the Minnesota postretirement investment fund &#10;93.5    or payments of survivor benefits <del>before July 1, 1993 </del><ins>in a month</ins>, the necessary amount &#10;93.6    is appropriated from the general fund to the executive director of the Minnesota State &#10;93.7    Retirement System, upon <ins>the </ins>certification <ins>of the required amount </ins>by the executive director &#10;93.8    to the commissioner of finance.&#10;&#10;<a id="go.11.27.0"></a>93.9        Sec. 27. Minnesota Statutes 2004, section 490.123, subdivision 2, is amended to read:&#10;93.10       Subd. 2. <b>Commissioner of finance.</b>  The commissioner of finance <del>shall be </del><ins>is the </ins>ex &#10;93.11   officio treasurer of the judges' retirement fund <del>and the</del><ins>.  The</ins> commissioner's general bond &#10;93.12   to the state <del>shall </del><ins>must </ins>be <del>so </del>conditioned <del>as </del>to cover all liability for acting as <ins>the </ins>treasurer &#10;93.13   of <del>this </del><ins>the </ins>fund.  All <del>moneys </del><ins>money </ins>received by the commissioner <del>pursuant to </del><ins>under </ins>this &#10;93.14   section <del>shall </del><ins>must </ins>be set aside in the state treasury to the credit of the judges' retirement &#10;93.15   fund. <del>The commissioner shall transmit monthly to the executive director described in </del>&#10;93.16   <del>section </del><del>352.03</del><del>, subdivision 5, a detailed statement of all amounts so received and credited </del>&#10;93.17   <del>to the fund.  The commissioner shall pay out the fund only upon vouchers signed by said </del>&#10;93.18   <del>executive director; provided that vouchers for investment may be signed by the secretary </del>&#10;93.19   <del>of the State Board of Investment.</del>&#10;&#10;<a id="go.11.28.0"></a>93.20       Sec. 28. Minnesota Statutes 2004, section 490.123, subdivision 3, is amended to read:&#10;93.21       Subd. 3. <b>Investment.</b> <ins>(a) </ins>The <ins>executive </ins>director <del>referred to in subdivision 2 </del><ins>of the </ins>&#10;93.22   <ins>Minnesota State Retirement System </ins>shall, from time to time, certify to the State Board &#10;93.23   of Investment such portions of the judges' retirement fund as in the director's judgment &#10;93.24   may not be required for immediate use.&#10;93.25   <ins>(b) </ins>Assets from the judges' retirement fund <del>shall </del><ins>must </ins>be transferred to the &#10;93.26   Minnesota postretirement investment fund for retirement and disability benefits as &#10;93.27   provided in sections11A.18 and 352.119.&#10;93.28   <ins>(c) </ins>The State Board of Investment shall thereupon invest and reinvest sums so &#10;93.29   transferred, or certified, in such securities as are duly authorized legal investments for such &#10;93.30   purposes under section 11A.24<ins> in compliance with sections 356A.04 and 356A.06</ins>.&#10;&#10;<a id="go.11.29.0"></a>93.31       Sec. 29. Minnesota Statutes 2004, section 490.124, subdivision 1, is amended to read:&#10;93.32       Subdivision 1. <b>Basic retirement annuity.</b> <ins>(a) </ins>Except as qualified hereinafter from &#10;93.33   and after <ins>the </ins>mandatory retirement date, <ins>the </ins>normal retirement date, <ins>the </ins>early retirement &#10;94.1    date, or one year from the disability retirement date, as the case may be, <ins>a retiring judge </ins>&#10;94.2    <ins>is eligible to receive </ins>a retirement annuity <del>shall be payable to a retiring judge</del> from the &#10;94.3    judges' retirement fund <del>in</del><ins>.</ins>&#10;94.4    <ins>(b) The retirement annuity is</ins> an amount equal to:  (1) the percent specified in section &#10;94.5    356.315, subdivision 7, multiplied by the judge's final average compensation <ins>with that </ins>&#10;94.6    <ins>result then </ins>multiplied by the number of years and fractions of years of allowable service &#10;94.7    rendered <del>prior to </del><ins>before </ins>July 1, 1980; plus (2) the percent specified in section 356.315, &#10;94.8    subdivision 8, multiplied by the judge's final average compensation <ins>with that result then </ins>&#10;94.9    multiplied by the number of years and fractions of years of allowable service rendered &#10;94.10   after June 30, 1980.&#10;94.11   <ins>(c) </ins>Service that exceeds the service credit limit in section 490.121, subdivision 22, &#10;94.12   must be excluded in calculating the retirement annuity, but <ins>the </ins>compensation earned <ins>by </ins>&#10;94.13   <ins>the judge </ins>during this <ins>period of judicial </ins>service must be used in determining a judge's final &#10;94.14   average compensation and calculating the retirement annuity.&#10;&#10;<a id="go.11.30.0"></a>94.15       Sec. 30. Minnesota Statutes 2004, section 490.124, subdivision 2, is amended to read:&#10;94.16       Subd. 2. <b>Minimum service requirement</b><del><b>; extension of term</b></del><b>.</b> <del>No </del><ins>(a) Unless section </ins>&#10;94.17   <ins>356.30</ins><ins> applies, a </ins>judge <del>shall be </del><ins>is not </ins>eligible for an annuity at <ins>the </ins>normal <ins>retirement date </ins>&#10;94.18   or <ins>the </ins>early retirement date if the judge has less than five years of allowable service.&#10;94.19   <ins>(b) </ins>A judge who <del>shall retire </del><ins>retires </ins>on or, as permitted under sections 490.121 to &#10;94.20   490.132, after <ins>the judge's </ins>mandatory retirement date, <del>shall be </del><ins>is </ins>entitled to a proportionate &#10;94.21   annuity based upon the allowable service of the judge at <ins>the </ins>date of retirement.&#10;94.22   <del>A judge who was in office on December 31, 1973, and thereafter and who, by the </del>&#10;94.23   <del>date on which the current term expires, would not be eligible to retire with full benefits </del>&#10;94.24   <del>under statutes in effect on December 31, 1973, may apply to the governor for an extension </del>&#10;94.25   <del>to serve up to three additional years, stating the intention of the judge to retire upon </del>&#10;94.26   <del>attaining eligibility to receive a retirement allowance.  Notwithstanding section </del><del>490.125</del><del>, </del>&#10;94.27   <del>the governor shall forthwith make a written order accepting the retirement application, </del>&#10;94.28   <del>and extending the term of office of the judge for the period of time, not to exceed three </del>&#10;94.29   <del>years, as may be necessary to make the judge eligible for retirement, solely for purposes </del>&#10;94.30   <del>of computing benefits hereunder.</del>&#10;&#10;<a id="go.11.31.0"></a>94.31       Sec. 31. Minnesota Statutes 2004, section 490.124, subdivision 3, is amended to read:&#10;94.32       Subd. 3. <b>Early </b><ins><b>reduced </b></ins><b>retirement.</b>  The retirement annuity <del>provided by </del><ins>under </ins>&#10;94.33   subdivision 1 of any judge <del>electing </del><ins>who elects </ins>to retire at an early retirement date <del>shall </del>&#10;95.1    <ins>must </ins>be reduced by one-half of one percent per month from the retirement date to <ins>the </ins>&#10;95.2    normal retirement date.&#10;&#10;<a id="go.11.32.0"></a>95.3        Sec. 32. Minnesota Statutes 2004, section 490.124, subdivision 4, is amended to read:&#10;95.4        Subd. 4. <b>Disability retirement.</b> <ins>(a) When the governor determines that a judge is </ins>&#10;95.5    <ins>disabled under section </ins><ins>490.121</ins><ins>, subdivision 13, notice of the governor's determination </ins>&#10;95.6    <ins>must be sent to the judge, to the chief justice of the Supreme Court, to the state court </ins>&#10;95.7    <ins>administrator, and to the executive director of the Minnesota State Retirement System.</ins>&#10;95.8    <ins>(b) </ins>From and after disability retirement date, a disabled judge <del>shall be </del><ins>is </ins>entitled to &#10;95.9    continuation of the judge's full salary payable by the judge's employer, as if the judge's &#10;95.10   office were not vacated by retirement, for a period of up to one full year, but in no event &#10;95.11   beyond the judge's mandatory retirement date.  During this year the judge <del>will </del><ins>is entitled </ins>&#10;95.12   <ins>to </ins>earn additional service credit <ins>in the judges' retirement plan</ins>.  The salary <del>earned will be </del>&#10;95.13   <ins>payable to a disabled judge is </ins>subject to retirement deductions and <del>will </del><ins>must </ins>be included &#10;95.14   in computing final average compensation <ins>of the judge</ins>. <del>Thereafter </del>&#10;95.15   <ins>(c) At the conclusion of the year of continued salary following a disability or </ins>&#10;95.16   <ins>upon the judge's mandatory retirement date, whichever is earlier, the disabled judge is </ins>&#10;95.17   <ins>entitled to </ins>a disability retirement annuity computed as provided in subdivision 1 <del>shall be </del>&#10;95.18   <del>paid, provided that</del><ins>. If the computed retirement annuity is a smaller amount,</ins> the judge &#10;95.19   <del>shall </del><ins>is entitled to </ins>receive a minimum annuity of 25 percent of the judge's final average &#10;95.20   compensation.&#10;&#10;<a id="go.11.33.0"></a>95.21       Sec. 33. Minnesota Statutes 2004, section 490.124, subdivision 5, is amended to read:&#10;95.22       Subd. 5. <b>Deferred benefits.</b>  (a) <del>Any </del><ins>A </ins>benefit to which a judge is entitled under this &#10;95.23   section may be deferred until <ins>the </ins>early or normal retirement date <ins>or later</ins>, notwithstanding &#10;95.24   <ins>the </ins>termination of <del>such </del><ins>the </ins>judge's service prior thereto.&#10;95.25   (b) The retirement annuity of, or the survivor benefit payable on behalf of, a former &#10;95.26   judge, who terminated service before July 1, 1997, which is not first payable until after &#10;95.27   June 30, 1997, must be increased on an actuarial equivalent basis to reflect the change in &#10;95.28   the postretirement interest rate actuarial assumption under section 356.215, subdivision &#10;95.29   8, from five percent to six percent under a calculation procedure and tables adopted by &#10;95.30   the board of directors of the Minnesota State Retirement System and approved by the &#10;95.31   actuary retained <del>by the Legislative Commission on Pensions and Retirement </del><ins>under section </ins>&#10;95.32   <ins>356.214</ins>.&#10;&#10;<a id="go.11.34.0"></a>95.33       Sec. 34. Minnesota Statutes 2004, section 490.124, subdivision 8, is amended to read:&#10;96.1        Subd. 8. <b>Exclusive normal retirement benefits.</b> <del>Any </del><ins>(a) Except as provided in </ins>&#10;96.2    <ins>paragraph (b), a </ins>judge who retires after December 31, 1973, <del>shall be </del><ins>is </ins>entitled to a &#10;96.3    retirement pension, retirement compensation or other retirement payment under statutes &#10;96.4    applicable solely to judges <del>pursuant to </del><ins>under </ins>this section only<del>, except that any such </del><ins>.</ins>&#10;96.5    <ins>(b) A </ins>judge <ins>who was </ins>in office <del>prior to </del><ins>before </ins>January 1, 1974, who retires at or after &#10;96.6    normal retirement age may then elect to receive during the judge's lifetime a normal &#10;96.7    retirement annuity computed on the basis of retirement compensation provided for such &#10;96.8    judge under statutes in effect on December 31, 1973, in lieu of the amount of normal &#10;96.9    retirement annuity otherwise computed under sections 490.121 to 490.132.&#10;96.10   <del>For purposes of this subdivision, the Conciliation Court of the city of Duluth shall be </del>&#10;96.11   <del>deemed to have been a court of record by the statutes in effect on December 31, 1973.</del>&#10;&#10;<a id="go.11.35.0"></a>96.12       Sec. 35. Minnesota Statutes 2004, section 490.124, subdivision 9, is amended to read:&#10;96.13       Subd. 9. <b>Survivors' annuity.</b> <ins>(a) </ins>Upon the death of a judge <del>prior to </del><ins>before </ins>&#10;96.14   retirement, or upon the death of a person who has qualified for an annuity <ins>under this </ins>&#10;96.15   <ins>section </ins>but who ceases to be a judge <del>prior to </del><ins>before </ins>retirement and <ins>who </ins>has not received a &#10;96.16   refund of contributions <del>pursuant to </del><ins>under </ins>subdivision 12, a surviving spouse <ins>is entitled </ins>&#10;96.17   <ins>to,</ins> or, if there be no surviving spouse, dependent children, <del>shall </del><ins>are entitled to </ins>receive an &#10;96.18   annuity, payable monthly, equal <ins>in total </ins>to 60 percent of the normal retirement annuity &#10;96.19   which would have been payable to the judge or former judge had the date of death been &#10;96.20   the normal retirement date<del>, provided that the</del><ins>.</ins>&#10;96.21   <ins>(b)  The annuity payable to a</ins> surviving spouse or <ins>to </ins>dependent children <del>shall receive </del>&#10;96.22   <del>an annuity </del><ins>is an amount </ins>of not less than 25 percent of the judge's or <ins>the </ins>former judge's &#10;96.23   final average compensation.&#10;96.24   <del>If a judge, whose surviving spouse was not entitled to survivors benefits provided </del>&#10;96.25   <del>solely for judges under statutes in effect prior to January 1, 1974, shall have died prior to </del>&#10;96.26   <del>retirement on or after May 23, 1973 and before January 1, 1974, a surviving spouse and </del>&#10;96.27   <del>dependent children, if any, shall be entitled to survivors benefits as provided hereunder as </del>&#10;96.28   <del>if such judge had died on January 1, 1974.</del>&#10;&#10;<a id="go.11.36.0"></a>96.29       Sec. 36. Minnesota Statutes 2004, section 490.124, subdivision 10, is amended to read:&#10;96.30       Subd. 10. <b>Prior survivors' benefits; limitation.</b> <ins>(a) </ins>Benefits provided <del>pursuant </del>&#10;96.31   <del>to</del> <ins>under Minnesota Statutes 2004,</ins> section 490.102, subdivision 6, or 490.1091, for a &#10;96.32   surviving spouse of a retired judge, payable after the death of the judge, <del>shall be </del><ins>are </ins>&#10;96.33   limited to<del>:</del>&#10;96.34   <del>(a) </del>spouses of judges who have retired <del>prior to </del><ins>before </ins>January 1, 1974<del>; and </del><ins>.</ins>&#10;97.1    (b) <del>spouses of judges in office on December 31, 1973 and thereafter who elect </del>&#10;97.2    <del>to continue contributions pursuant to section </del><del>490.102, subdivision 6</del><del> or </del><del>490.109</del><del>.  The </del>&#10;97.3    <del>contributions shall be in addition to contributions pursuant to section 490.123, and upon </del>&#10;97.4    <del>retirement the judge may not elect to receive any optional annuity pursuant to subdivision </del>&#10;97.5    <del>11 unless the judge and the spouse shall waive any benefits pursuant to section 490.102, </del>&#10;97.6    <del>subdivision 6 or </del><del>490.1091</del><del>.</del>&#10;97.7    No other judge in office on or after January 1, 1974, <del>shall be </del><ins>is </ins>required to contribute &#10;97.8    <del>pursuant to </del><ins>under Minnesota Statutes 2004,</ins> section 490.102, subdivision 6<ins>,</ins> or 490.109.&#10;&#10;<a id="go.11.37.0"></a>97.9        Sec. 37. Minnesota Statutes 2004, section 490.124, subdivision 11, is amended to read:&#10;97.10       Subd. 11. <ins><b>Limitation on survivor benefits; </b></ins><b>optional annuities.</b> <ins>(a) </ins>No survivor &#10;97.11   or death benefits may be paid in connection with the death of a judge who retires after &#10;97.12   December 31, 1973, except as otherwise provided in sections 490.121 to 490.132.&#10;97.13   <ins>(b) </ins>Except as provided in subdivision 10, a judge may elect to receive, instead of &#10;97.14   the normal retirement annuity, an optional retirement annuity in the form of <ins>either (1) </ins>an &#10;97.15   annuity payable for a period certain and for life after that period, <ins>(2) </ins>a joint and survivor &#10;97.16   annuity without reinstatement <del>in the event of </del><ins>if </ins>the designated beneficiary <del>predeceasing </del>&#10;97.17   <ins>predeceases </ins>the retired judge, or <ins>(3) </ins>a joint and survivor annuity with reinstatement <del>in the </del>&#10;97.18   <del>event of </del><ins>if </ins>the designated beneficiary <del>predeceasing </del><ins>predeceases </ins>the retired judge.&#10;97.19   <ins>(c) </ins>An optional retirement annuity must be actuarially equivalent to a single-life &#10;97.20   annuity with no term certain and must be established by the board of directors of the &#10;97.21   Minnesota State Retirement System.  In establishing these optional retirement annuity &#10;97.22   forms, the board shall obtain the written recommendation of the actuary retained <del>by </del>&#10;97.23   <del>the Legislative Commission on Pensions and Retirement </del><ins>under section 356.214</ins>. The &#10;97.24   recommendations must be <ins>retained as </ins>a part of the permanent records of the board.&#10;&#10;<a id="go.11.38.0"></a>97.25       Sec. 38. Minnesota Statutes 2004, section 490.124, subdivision 12, is amended to read:&#10;97.26       Subd. 12. <b>Refund.</b>  (a) A person who ceases to be a judge <del>but who does not qualify </del>&#10;97.27   <del>for a retirement annuity or other benefit under section </del><del>490.121</del><del> </del>is entitled to a refund in &#10;97.28   an amount <ins>that is </ins>equal to all <ins>of </ins>the member's employee contributions to the judges' &#10;97.29   retirement fund plus interest computed under section 352.22, subdivision 2.&#10;97.30   (b) A refund of contributions under paragraph (a) terminates all service credits and &#10;97.31   all rights and benefits of the judge and the judge's survivors <ins>under this chapter</ins>.&#10;97.32   <ins>(c) </ins>A person who becomes a judge again after taking a refund under paragraph &#10;97.33   (a) may reinstate the previously terminated <ins>allowable </ins>service <del>credits </del><ins>credit</ins>, rights, and &#10;97.34   benefits by repaying the total amount of the previously received refund.  The refund &#10;98.1    repayment must include interest on the total amount previously received at an annual rate &#10;98.2    of 8.5 percent<ins>,</ins> compounded annually<ins>,</ins> from the date on which the refund was received &#10;98.3    until the date on which the refund is repaid.&#10;&#10;<a id="go.11.39.0"></a>98.4        Sec. 39. Minnesota Statutes 2004, section 490.124, subdivision 13, is amended to read:&#10;98.5        Subd. 13. <b>Death refund.</b>  If a judge who has not received other benefits under this &#10;98.6    chapter dies and there are no survivor benefits payable under this chapter, a refund plus &#10;98.7    interest as provided in subdivision 12 is payable to the last designated beneficiary named &#10;98.8    on a form filed with the director before the death of the judge, or<ins>,</ins> if no designation is on &#10;98.9    file, <del>the refund is payable </del>to the estate of the deceased judge.&#10;&#10;<a id="go.11.40.0"></a>98.10       Sec. 40. Minnesota Statutes 2004, section 490.125, subdivision 1, is amended to read:&#10;98.11       Subdivision 1. <b>Mandatory retirement </b><ins><b>age</b></ins><b>.</b>  Except as otherwise provided in &#10;98.12   sections 490.121 to 490.132, <del>each </del><ins>a </ins>judge shall <del>retire </del><ins>terminate active service as a judge </ins>&#10;98.13   on the judge's mandatory retirement date.&#10;&#10;<a id="go.11.41.0"></a>98.14       Sec. 41. Minnesota Statutes 2004, section 490.125, subdivision 2, is amended to read:&#10;98.15       Subd. 2. <b>Exception.</b> <del>Except as provided by sections 490.025, subdivision 3, </del>&#10;98.16   <del>490.102</del><del>, subdivisions 3 and 3a and 490.12, subdivision 2,</del> Any judge in office on &#10;98.17   December 31, 1973 who shall have attained 70 years of age on or prior to such date shall &#10;98.18   retire upon the expiration of the term of office of such judge.&#10;&#10;<a id="go.11.42.0"></a>98.19       Sec. 42. Minnesota Statutes 2004, section 490.126, as amended by Laws 2005, First &#10;98.20   Special Session chapter 8, article 10, section 79, is amended to read:&#10;98.21   <b>490.126 PROCEDURES.</b>&#10;98.22       Subdivision 1. <b>Compulsory retirement.</b> Proceedings for compulsory retirement &#10;98.23   of a judge, if necessary, <del>shall</del><ins> must</ins> be conducted in accordance with rules issued by the &#10;98.24   Supreme Court <del>pursuant to</del><ins> under</ins> section  <del>490.16</del><ins> 490A.02</ins>. &#10;98.25       Subd. 2. <b>Vacancies.</b> Any judge may make written application to the governor for &#10;98.26   retirement. The governor thereupon shall direct the judge's retirement by written order &#10;98.27   which, when filed in the Office of the Secretary of State, <del>shall effect</del><ins> effects</ins> a vacancy in &#10;98.28   the office to be filled as provided by law.&#10;98.29       Subd. 3. <b>Application for annuity or refund.</b> <ins>An </ins>application for an annuity or <ins>a </ins>&#10;98.30   refund under sections  490.121 to  490.132 may be made by the <ins>potential </ins>annuitant or by &#10;98.31   someone authorized to act for the <ins>potential </ins>annuitant. Every application for an annuity &#10;98.32   or refund, <del>with</del><ins> accompanied by a</ins> proof of age and <ins>by a record of </ins>years of service &#10;99.1    when required, <del>shall</del><ins> must</ins> be submitted to the <del>governing body</del><ins> executive director</ins> of the &#10;99.2    Minnesota State Retirement System in a form prescribed by <del>it</del><ins> the director</ins>. &#10;99.3        Subd. 4. <b>Manner of payment.</b> Unless otherwise specifically provided by statute or &#10;99.4    agreed upon by the annuitant and the <del>governing body</del><ins> board of directors</ins> of the <ins>Minnesota </ins>&#10;99.5    state retirement system, annuities payable under sections  490.121 to  490.132 <del>shall</del><ins> must</ins> &#10;99.6    be paid in the manner and at the intervals as prescribed by the executive director of the &#10;99.7    <ins>Minnesota </ins>state retirement system. The annuity <del>shall cease</del><ins> ceases</ins> with the last payment &#10;99.8    received by the annuitant while living. &#10;99.9        Subd. 5. <b>Exemption from process; no assignment.</b> The provisions of section &#10;99.10   356.401 apply to the judges retirement plan.&#10;&#10;<a id="go.11.43.0"></a>99.11       Sec. 43. Minnesota Statutes 2004, section 490.133, is amended to read:&#10;99.12   <b>490.133 RETIREMENT; TRANSITION PROVISIONS; TRANSFER TO </b>&#10;99.13   <b>COURT OF APPEALS.</b>&#10;99.14   <ins>(a) </ins>If a judge to whom or to whose survivors benefits would be payable under &#10;99.15   <ins>Minnesota Statutes 2004,</ins> sections 490.101 to 490.12, is elected or appointed to the Court &#10;99.16   of Appeals, that judge and the judge's survivors<del>, shall </del>continue to be eligible for benefits &#10;99.17   under those sections and not under sections 490.121to 490.132.&#10;99.18   <ins>(b) </ins>In <del>that </del><ins>the </ins>case <ins>of a judge to whom paragraph (a) applies</ins>, the service of the &#10;99.19   judge in the Court of Appeals <del>shall </del><ins>must </ins>be added to the <ins>prior </ins>service as district judge, &#10;99.20   probate judge, or judge of any other court of record in determining eligibility and the &#10;99.21   compensation of a judge of the Court of Appeals at the time of the judge's death, disability, &#10;99.22   or retirement <del>shall be </del><ins>is </ins>the "compensation allotted to the office" for the purposes of &#10;99.23   calculating benefit amounts.&#10;99.24   <ins>(c) </ins>All other judges of the Court of Appeals and their survivors <del>shall be </del><ins>are </ins>subject &#10;99.25   to the retirement and survivor's annuity provisions of sections 490.121 to 490.132.&#10;&#10;<a id="go.11.44.0"></a>99.26       Sec. 44. <ins><b>[490A.01] BOARD OF JUDICIAL STANDARDS; ESTABLISHMENT.</b></ins>&#10;99.27       <ins>Subdivision 1.</ins> <ins><b>Establishment; composition.</b></ins> <ins>The Board on Judicial Standards is </ins>&#10;99.28   <ins>established.  The board is a continuation of the board established by Laws 1971, chapter </ins>&#10;99.29   <ins>909, sections 1and 2, as amended.</ins>&#10;99.30       <ins>Subd. 2.</ins> <ins><b>Composition; appointment.</b></ins> <ins>(a) The board consists of one judge of the </ins>&#10;99.31   <ins>Court of Appeals, three trial court judges, two lawyers who have practiced law in the state </ins>&#10;99.32   <ins>for at least ten years, and four citizens who are not judges, retired judges, or lawyers.</ins>&#10;99.33   <ins>(b) All members must be appointed by the governor with the advice and consent of </ins>&#10;99.34   <ins>the senate.  Senate confirmation is not required for judicial members.</ins>&#10;100.1       <ins>Subd. 3.</ins> <ins><b>Term maximum; membership termination.</b></ins> <ins>No member may serve more </ins>&#10;100.2   <ins>than two full four-year terms or their equivalent. Membership terminates if a member </ins>&#10;100.3   <ins>ceases to hold the position that qualified the member for appointment.</ins>&#10;100.4       <ins>Subd. 4.</ins> <ins><b>Member terms; compensation; removal.</b></ins> <ins>The membership terms, </ins>&#10;100.5   <ins>compensation, removal of members, and filling of vacancies on the board are as provided </ins>&#10;100.6   <ins>in section </ins><ins>15.0575</ins><ins>.</ins>&#10;100.7       <ins>Subd. 5.</ins> <ins><b>Executive secretary appointment; salary.</b></ins> <ins>(a) The board shall appoint </ins>&#10;100.8   <ins>the executive secretary.</ins>&#10;100.9   <ins>(b) The salary of the executive secretary of the board is 85 percent of the maximum </ins>&#10;100.10  <ins>salary provided for an administrative law judge under section </ins><ins>15A.083, subdivision 6a</ins><ins>.</ins>&#10;&#10;<a id="go.11.45.0"></a>100.11      Sec. 45. <ins><b>[490A.02] JUDICIAL STANDARDS BOARD; POWERS.</b></ins>&#10;100.12      <ins>Subdivision 1.</ins> <ins><b>Judicial disqualification.</b></ins> <ins>A judge is disqualified from acting as a </ins>&#10;100.13  <ins>judge, without a loss of salary, while there is pending an indictment or any information </ins>&#10;100.14  <ins>charging the judge with a crime that is punishable as a felony under either Minnesota law </ins>&#10;100.15  <ins>or federal law, or while there is pending a recommendation to the Supreme Court by the </ins>&#10;100.16  <ins>Board on Judicial Standards for the judge's removal or retirement.</ins>&#10;100.17      <ins>Subd. 2.</ins> <ins><b>Judicial suspension.</b></ins> <ins>On receipt of a recommendation of the Board on </ins>&#10;100.18  <ins>Judicial Standards or on its own motion, the Supreme Court may suspend a judge from </ins>&#10;100.19  <ins>office without salary when the judge pleads guilty to or no contest to or is found guilty of </ins>&#10;100.20  <ins>a crime that is punishable as a felony under either Minnesota law or federal law or any </ins>&#10;100.21  <ins>other crime that involves moral turpitude.  If the conviction is reversed, the suspension </ins>&#10;100.22  <ins>terminates and the judge must be paid a salary for the period of suspension.  If the judge </ins>&#10;100.23  <ins>is suspended and the conviction becomes final, the Supreme Court shall remove the </ins>&#10;100.24  <ins>judge from office.</ins>&#10;100.25      <ins>Subd. 3.</ins> <ins><b>Judicial disability.</b></ins> <ins>On receipt of a recommendation of the Board on </ins>&#10;100.26  <ins>Judicial Standards, the Supreme Court may retire a judge for a disability that the court </ins>&#10;100.27  <ins>determines seriously interferes with the performance of the judge's duties and is or is </ins>&#10;100.28  <ins>likely to become permanent, and censure or remove a judge for an action or inaction that </ins>&#10;100.29  <ins>may constitute persistent failure to perform the judge's duties, incompetence in performing </ins>&#10;100.30  <ins>the judge's duties, habitual intemperance, or conduct prejudicial to the administration of </ins>&#10;100.31  <ins>justice that brings the judicial office into disrepute.</ins>&#10;100.32      <ins>Subd. 4.</ins> <ins><b>Authority to reopen matters.</b></ins> <ins>The board is specifically empowered to </ins>&#10;100.33  <ins>reopen any matter wherein any information or evidence was previously precluded by a </ins>&#10;100.34  <ins>statute of limitations or by a previously existing provision of time limitation.</ins>&#10;101.1       <ins>Subd. 5.</ins> <ins><b>Retirement status.</b></ins> <ins>(a) A judge who is retired by the Supreme Court must </ins>&#10;101.2   <ins>be considered to have retired voluntarily.</ins>&#10;101.3   <ins>(b) This section and section </ins><ins>490A.01</ins><ins> must not affect the right of a judge who </ins>&#10;101.4   <ins>is suspended, retired, or removed hereunder from qualifying for any pension or other </ins>&#10;101.5   <ins>retirement benefits to which the judge would otherwise be entitled by law to receive.</ins>&#10;101.6       <ins>Subd. 6.</ins> <ins><b>Eligibility for judicial office; practice law.</b></ins> <ins>A judge removed by the </ins>&#10;101.7   <ins>Supreme Court is ineligible for any future service in a judicial office.  The question of </ins>&#10;101.8   <ins>the right of a removed judge to practice law in this state must be referred to the proper </ins>&#10;101.9   <ins>authority for review.</ins>&#10;101.10      <ins>Subd. 7.</ins> <ins><b>Supreme court rules.</b></ins> <ins>The Supreme Court shall make rules to implement </ins>&#10;101.11  <ins>this section.</ins>&#10;&#10;<a id="go.11.46.0"></a>101.12      Sec. 46. <ins><b>[490A.03] PERSONS AFFECTED.</b></ins>&#10;101.13  <ins>The provisions of sections </ins><ins>490A.01</ins><ins> and </ins><ins>490A.02</ins><ins> apply to all judges, judicial </ins>&#10;101.14  <ins>officers, and referees.</ins>&#10;&#10;<a id="go.11.47.0"></a>101.15      Sec. 47. Minnesota Statutes 2004, section 525.05, is amended to read:&#10;101.16  <b>525.05 JUDGE OR REFEREE; GROUNDS FOR DISQUALIFICATION.</b>&#10;101.17  The following shall be grounds for disqualification of any judge or referee from &#10;101.18  acting in any matter:  (1) That the judge or the judge's spouse or any of either of their kin &#10;101.19  nearer than first cousin is interested as representative, heir, devisee, legatee, ward, or &#10;101.20  creditor in the estate involved therein; (2) that it involves the validity or interpretation of a &#10;101.21  will drawn or witnessed by the judge; (3) that the judge may be a necessary witness in the &#10;101.22  matter; (4) that it involves a property right in respect to which the judge has been engaged &#10;101.23  or is engaged as an attorney; or (5) that the judge was engaged in a joint enterprise for &#10;101.24  profit with the decedent at the time of death or that the judge is then engaged in a joint &#10;101.25  enterprise for profit with any person interested in the matter as representative, heir, &#10;101.26  devisee, legatee, ward, or creditor.  When grounds for disqualification exist, the judge may, &#10;101.27  and upon proper petition of any person interested in the estate must, request another &#10;101.28  judge or a judge who has retired <del>as provided in section </del><del>490.12</del><del>, subdivision 2,</del> to act in &#10;101.29  the judge's stead in the matter.&#10;&#10;<a id="go.11.48.0"></a>101.30      Sec. 48. <ins><b>REVISOR'S INSTRUCTION.</b></ins>&#10;101.31  <ins>(a) In Minnesota Statutes, chapters 352, 352D, 355, 356,and 487, the revisor of </ins>&#10;101.32  <ins>statutes shall change references to "sections </ins><ins>490.121</ins><ins> to 490.132" to "chapter 490."</ins>&#10;102.1   <ins>(b) In Minnesota Statutes, chapter 490, the revisor of statutes shall change references </ins>&#10;102.2   <ins>to "sections </ins><ins>490.121</ins><ins> to 490.132" to "this chapter."</ins>&#10;102.3   <ins>(c) In Minnesota Statutes, sections </ins><ins>175A.01, subdivision 4</ins><ins>, and </ins><ins>271.01, subdivision </ins>&#10;102.4   <ins>1</ins><ins>, the revisor of statutes shall change references to "sections </ins><ins>490.15</ins><ins> and 490.16" to </ins>&#10;102.5   <ins>"sections 490A.01 and 490A.02."</ins>&#10;&#10;<a id="go.11.49.0"></a>102.6       Sec. 49. <ins><b>REPEALER.</b></ins>&#10;102.7       <ins>Subdivision 1.</ins> <ins><b>Judicial retirement plans; repealed as obsolete.</b></ins> <ins> Minnesota </ins>&#10;102.8   <ins>Statutes 2004, sections 490.021; 490.025; 490.101; 490.102; 490.103; 490.105; 490.106; </ins>&#10;102.9   <ins>490.107; 490.108; 490.109; 490.1091; 490.12; 490.121, subdivisions 2, 3, 5, 8, 9, 10, 11, </ins>&#10;102.10  <ins>12, 16, 17, 18, and 19; 490.124, subdivision 6; and 490.132,</ins><ins> and  Minnesota Statutes 2005 </ins>&#10;102.11  <ins>Supplement, section 490.121, subdivision 20,</ins><ins> are repealed.</ins>&#10;102.12      <ins>Subd. 2.</ins> <ins><b>Judicial standards board; repealed for relocation as Minnesota </b></ins>&#10;102.13  <ins><b>Statutes, chapter 490A.</b></ins> <ins> Minnesota Statutes 2004, sections 490.15; 490.16; and 490.18,</ins><ins> </ins>&#10;102.14  <ins>are repealed.</ins>&#10;102.15      <ins>Subd. 3.</ins> <ins><b>Uniform judicial retirement plan; no benefit diminishment intended; </b></ins>&#10;102.16  <ins><b>procedure.</b></ins> <ins>Sections 1 to 49 are not intended to reduce or increase the entitlement of </ins>&#10;102.17  <ins>active, deferred, or retired judges to retirement annuities or benefits as of July 1, 2006, as </ins>&#10;102.18  <ins>reflected in the records of the Minnesota State Retirement System.  If the executive director </ins>&#10;102.19  <ins>of the Minnesota State Retirement System determines that any provision of sections 1 to </ins>&#10;102.20  <ins>47 functions to modify, impair, or diminish the retirement annuity or benefit entitlement </ins>&#10;102.21  <ins>of any judge that had accrued or earned before July 1, 2006, the executive director shall </ins>&#10;102.22  <ins>certify that determination and a recommendation as to the required legislative correction </ins>&#10;102.23  <ins>to the chair of the Legislative Commission on Pensions and Retirement, the chair of </ins>&#10;102.24  <ins>the senate State and Local Government Operations Committee, the chair of the house </ins>&#10;102.25  <ins>Governmental Operations and Veterans Affairs Policy Committee, and the executive </ins>&#10;102.26  <ins>director of the Legislative Commission on Pensions and Retirement on or before the </ins>&#10;102.27  <ins>October 1 next following that determination.</ins>&#10;&#10;<a id="go.11.50.0"></a>102.28      Sec. 50. <ins><b>EFFECTIVE DATE.</b></ins>&#10;102.29  <ins>Sections 1 to 49 are effective July 1, 2006.</ins>&#10;&#10;<a id="go.12.0.0"></a>102.30                                         <b>ARTICLE 12</b>&#10;102.31                         <b>JUDGES RETIREMENT PLAN AND RELATED CHANGES</b>&#10;&#10;<a id="go.12.1.0"></a>102.32      Section 1. Minnesota Statutes 2004, section 3A.02, subdivision 5, is amended to read:&#10;103.1       Subd. 5. <b>Optional annuities.</b> (a) The board of directors shall establish an optional &#10;103.2   retirement annuity in the form of a joint and survivor annuity and an optional retirement &#10;103.3   annuity in the form of a period certain and life thereafter. Except as provided in paragraph &#10;103.4   (b), these optional annuity forms must be actuarially equivalent to the normal annuity &#10;103.5   computed under this section, plus the actuarial value of any surviving spouse benefit &#10;103.6   otherwise potentially payable at the time of retirement under section  3A.04, subdivision 1. &#10;103.7   An individual selecting an optional annuity under this subdivision waives any rights to &#10;103.8   surviving spouse benefits under section  3A.04, subdivision 1. &#10;103.9   (b) If a retired legislator selects the joint and survivor annuity option, the retired &#10;103.10  legislator must receive a normal single-life annuity if the designated optional annuity &#10;103.11  beneficiary dies before the retired legislator and no reduction may be made in the annuity &#10;103.12  to provide for restoration of the normal single-life annuity in the event of the death of the &#10;103.13  designated optional annuity beneficiary.&#10;103.14  (c) The surviving spouse of a legislator who has attained at least age <del>60</del> <ins>55</ins> and who &#10;103.15  dies while a member of the legislature may elect an optional joint and survivor annuity &#10;103.16  under paragraph (a), in lieu of surviving spouse benefits under section  3A.04, subdivision &#10;103.17  1. &#10;&#10;<a id="go.12.2.0"></a>103.18      Sec. 2. Minnesota Statutes 2004, section 3A.04, subdivision 1, is amended to read:&#10;103.19      Subdivision 1. <b>Surviving spouse.</b> Upon the death of a member of the legislature &#10;103.20  while serving as such member after June 30, 1973, or upon the death of a former member &#10;103.21  of the legislature with at least the number of years of service as required by section  3A.02, &#10;103.22  subdivision 1, clause (1), <ins>if section 3A.02, subdivision 5, paragraph (c), does not apply, </ins>&#10;103.23  the surviving spouse shall be paid a survivor benefit in the amount of one-half of the &#10;103.24  retirement allowance of the member of the legislature computed as though the member &#10;103.25  were at least normal retirement age on the date of death and based upon allowable &#10;103.26  service or eight years whichever is greater. The augmentation provided in section  3A.02, &#10;103.27  subdivision 4, if applicable, shall be applied to the month of death. Upon the death of a &#10;103.28  former legislator receiving a retirement allowance, the surviving spouse shall be entitled &#10;103.29  to one-half of the amount of the allowance being paid to the legislator. Such benefit shall &#10;103.30  be paid during the lifetime of the surviving spouse. &#10;&#10;<a id="go.12.3.0"></a>103.31      Sec. 3.  Minnesota Statutes 2004, section 490.124, subdivision 9, is amended to read:&#10;103.32       Subd. 9. <b>Survivors' annuity.</b>  <ins>(a) </ins>Upon the death of a judge prior to retirement, or &#10;103.33  upon the death of a person who has qualified for an annuity but who ceases to be a judge &#10;103.34  prior to retirement and has not received a refund of contributions pursuant to subdivision &#10;104.1   12, a surviving spouse or, if there be no surviving spouse, dependent children, shall &#10;104.2   receive an annuity, payable monthly, equal to 60 percent of the normal retirement annuity &#10;104.3   which would have been payable to the judge or former judge had the date of death been &#10;104.4   the normal retirement date, provided that the surviving spouse or dependent children &#10;104.5   shall receive an annuity of not less than 25 percent of the judge's or former judge's final &#10;104.6   average compensation.&#10;104.7    <ins>(b) The surviving spouse of a deceased judge may elect to receive, in lieu of the </ins>&#10;104.8   <ins>annuity under paragraph (a), an annuity equal to the 100 percent joint and survivor annuity </ins>&#10;104.9   <ins>which the judge or former judge could have qualified for on the date of death. </ins>&#10;104.10   <ins>(c) </ins>If a judge, whose surviving spouse was not entitled to survivors benefits provided &#10;104.11  solely for judges under statutes in effect prior to January 1, 1974, shall have died prior to &#10;104.12  retirement on or after May 23, 1973<ins>, </ins> and before January 1, 1974, a surviving spouse and &#10;104.13  dependent children, if any, shall be entitled to survivors benefits as provided hereunder as &#10;104.14  if such judge had died on January 1, 1974. &#10;&#10;<a id="go.12.4.0"></a>104.15      Sec. 4. <ins><b>EFFECTIVE DATE.</b></ins>&#10;104.16  <ins>(a) Sections 1 and 2 are effective the day following final enactment.</ins>&#10;104.17  <ins>(b) Section 3 is effective January 1, 2006, and applies to the surviving spouse of </ins>&#10;104.18  <ins>any judge who died on or after that date.</ins>&#10;&#10;<a id="go.13.0.0"></a>104.19                                         <b>ARTICLE 13</b>&#10;104.20                         <b>VOLUNTEER FIRE RELIEF ASSOCIATION CHANGES</b>&#10;&#10;<a id="go.13.1.0"></a>104.21      Section 1. Minnesota Statutes 2004, section 6.72, is amended to read:&#10;104.22  <b>6.72 STATE AUDITOR; REPORT TO LEGISLATURE ON VOLUNTEER </b>&#10;104.23  <b>FIREFIGHTERS' RELIEF ASSOCIATIONS.</b>&#10;104.24      Subdivision 1. <b>Reporting requirements.</b> <del>Commencing November 15, 1981, and </del>&#10;104.25  <del>every two years thereafter</del><ins> (a) Annually</ins>, the state auditor shall report to the legislature on &#10;104.26  the general financial condition of the various volunteer firefighters' relief associations in &#10;104.27  the state as of December 31 of the year preceding the filing of the report. &#10;104.28  <ins>(b) </ins>Two copies of the report shall be filed with the executive director of the &#10;104.29  Legislative Commission on Pensions and Retirement and ten copies of the report shall be &#10;104.30  filed with the director of the Legislative Reference Library.&#10;104.31      Subd. 2. <b>Contents of report.</b> The report <del>shall</del><ins> must</ins> include <del>the aggregate totals</del> for &#10;104.32  all volunteer firefighters' relief associations directly associated with the municipal fire &#10;104.33  departments and all volunteer firefighters' relief associations subsidiary to independent &#10;104.34  nonprofit firefighting corporations, the <del>aggregate totals by the various benefit types and the </del>&#10;105.1   <del>individual results for each volunteer firefighters' relief association listed by various benefit </del>&#10;105.2   <del>types specified in subdivision 3. The</del> following <del>items shall be reported in each instance</del>:&#10;105.3   (1) amount of accrued liability,&#10;105.4   (2) amount of <ins>the </ins>assets<ins> of the special fund</ins>,&#10;105.5   (3) amount of surplus or unfunded accrued liability,&#10;105.6   (4) funding ratio,&#10;105.7   (5) amount of annual accruing liability or normal cost,&#10;105.8   (6) amount of annual required contribution to amortize the unfunded accrued &#10;105.9   liability,&#10;105.10  (7) amount of total required contribution,&#10;105.11  (8) amount of fire state aid<ins> and supplemental fire state aid</ins>,&#10;105.12  (9) amount of any municipal contributions,&#10;105.13  (10) amount of administrative expenses,&#10;105.14  (11) amount of service pension disbursements,&#10;105.15  (12) amount of other retirement benefit disbursements,&#10;105.16  (13) number of active members,&#10;105.17  (14) number of retired members,&#10;105.18  (15) number of deferred members,&#10;105.19  (16) amount of fidelity bond of secretary and treasurer,&#10;105.20  (17) amount of lump sum or monthly service pension accrued per year of service &#10;105.21  credit,&#10;105.22  (18) minimum retirement age required for commencement of a service pension,&#10;105.23  (19) minimum years of active service credit required for commencement of service &#10;105.24  pension,&#10;105.25  (20) minimum years of active membership credit required for commencement of &#10;105.26  service pension,<ins> and</ins>&#10;105.27  (21) type and amount of other retirement benefits.&#10;105.28      Subd. 3. <del><b>Benefit categories</b></del><ins><b> Report format</b></ins><b>.</b> <del>For purposes of compiling</del> The report &#10;105.29  required by this section<del>, the various benefit types shall be as follows:</del>&#10;105.30  <del>(1) volunteer firefighters' relief associations paying a lump sum service pension of:</del>&#10;105.31  <del>(i) less than $50 per year of service,</del>&#10;105.32  <del>(ii) $50 or more, but less than $100 per year of service,</del>&#10;105.33  <del>(iii) $100 or more, but less than $200 per year of service,</del>&#10;105.34  <del>(iv) $200 or more, but less than $300 per year of service,</del>&#10;105.35  <del>(v) $300 or more per year of service;</del>&#10;106.1   <del>(2) volunteer firefighters' relief associations paying a monthly benefit service </del>&#10;106.2   <del>pension of:</del>&#10;106.3   <del>(i) less than $2 per month per year of service,</del>&#10;106.4   <del>(ii) $2 or more per month per year of service;</del>&#10;106.5   <del>(3) volunteer firefighters' relief associations paying a defined contribution service </del>&#10;106.6   <del>pension;</del>&#10;106.7   <del>(4) volunteer firefighters' relief associations paying no service pension</del><ins> must be </ins>&#10;106.8   <ins>organized in a manner that the state auditor determines to provide fair representation of </ins>&#10;106.9   <ins>the condition of the various volunteer firefighters' relief associations</ins>.&#10;&#10;<a id="go.13.2.0"></a>106.10      Sec. 2. Minnesota Statutes 2004, section 424A.001, is amended by adding a &#10;106.11  subdivision to read:&#10;106.12      <ins>Subd. 10.</ins> <ins><b>Volunteer firefighter.</b></ins> <ins>"Volunteer firefighter" means a person who:</ins>&#10;106.13  <ins>(1) was a member of the applicable fire department or the firefighting corporation </ins>&#10;106.14  <ins>and a member of the relief association on July 1, 2006; or</ins>&#10;106.15  <ins>(2) became a member of the applicable fire department or the firefighting corporation </ins>&#10;106.16  <ins>and is eligible for membership in the applicable relief association after June 30, 2006, and</ins>&#10;106.17  <ins>(i) is engaged in providing emergency response services or delivering fire education </ins>&#10;106.18  <ins>or prevention services as a member of a municipal fire department, a joint powers entity </ins>&#10;106.19  <ins>fire department, or an independent nonprofit firefighting corporation;</ins>&#10;106.20  <ins>(ii) is trained in or is qualified to provide fire suppression duties or to provide fire </ins>&#10;106.21  <ins>prevention duties under subdivision 8; and</ins>&#10;106.22  <ins>(iii) meets any other minimum firefighter and service standards established by the </ins>&#10;106.23  <ins>fire department or firefighting corporation or specified in the articles of incorporation or </ins>&#10;106.24  <ins>bylaws of the relief association.</ins>&#10;&#10;<a id="go.13.3.0"></a>106.25      Sec. 3. Minnesota Statutes 2004, section 424A.02, subdivision 8b, is amended to read:&#10;106.26      Subd. 8b. <b>Transfer to individual retirement account.</b> A relief association that is &#10;106.27  a qualified pension plan under section 401(a) of the federal Internal Revenue Code, as &#10;106.28  amended, and that provides a lump sum service pension, at the written request of <del>a</del> <ins>the </ins>&#10;106.29  <ins>applicable </ins>retiring member<ins> or, following the death of the active member, at the written </ins>&#10;106.30  <ins>request of the deceased member's surviving spouse</ins>, may directly transfer the eligible &#10;106.31  member's lump sum pension <ins>or the death, funeral, or survivor benefit attributable to the </ins>&#10;106.32  <ins>member, whichever applies, </ins>to the <del>member's</del> <ins>requesting person's </ins>individual retirement &#10;106.33  account under section 408(a) of the federal Internal Revenue Code, as amended.&#10;&#10;<a id="go.13.4.0"></a>107.1       Sec. 4. Minnesota Statutes 2004, section 424A.05, subdivision 3, is amended to read:&#10;107.2       Subd. 3. <b>Authorized disbursements from the special fund.</b> (a) Disbursements &#10;107.3   from the special fund are not permitted to be made for any purpose other than one of &#10;107.4   the following:&#10;107.5   (1) for the payment of service pensions to retired members of the relief association if &#10;107.6   authorized and paid pursuant to law and the bylaws governing the relief association;&#10;107.7   (2) for the payment of temporary or permanent disability benefits to disabled &#10;107.8   members of the relief association if authorized and paid pursuant to law and specified in &#10;107.9   amount in the bylaws governing the relief association;&#10;107.10  (3) for the payment of survivor benefits to surviving spouses and surviving children, &#10;107.11  or if none, to designated beneficiaries, of deceased members of the relief association<ins>, </ins>&#10;107.12  <ins>and if survivors and if no designated beneficiary, for the payment of a death benefit to </ins>&#10;107.13  <ins>the estate of the deceased active firefighter, </ins> if authorized by and paid pursuant to law and &#10;107.14  specified in amount in the bylaws governing the relief association;&#10;107.15  (4) for the payment of any funeral benefits to the surviving spouse, or if no surviving &#10;107.16  spouse, the estate, of the deceased member of the relief association if authorized by law &#10;107.17  and specified in amount in the bylaws governing the relief association;&#10;107.18  (5) for the payment of the fees, dues and assessments to the Minnesota State Fire &#10;107.19  Department Association, to the Minnesota Area Relief Association Coalition, and to &#10;107.20  the state Volunteer Firefighters Benefit Association in order to entitle relief association &#10;107.21  members to membership in and the benefits of these associations or organizations; and&#10;107.22  (6) for the payment of administrative expenses of the relief association as authorized &#10;107.23  pursuant to section  69.80. &#10;107.24  (b) For purposes of this chapter, a designated beneficiary must be a natural person.&#10;&#10;<a id="go.13.5.0"></a>107.25      Sec. 5. Minnesota Statutes 2004, section 424A.10, is amended to read:&#10;107.26  <b>424A.10 STATE SUPPLEMENTAL BENEFIT; VOLUNTEER </b>&#10;107.27  <b>FIREFIGHTERS.</b>&#10;107.28      Subdivision 1. <del><b>Definition</b></del><ins><b> Definitions</b></ins><b>.</b> For purposes of this section<del>,</del><ins>:</ins> &#10;107.29  <ins>(1) </ins>"qualified recipient" means an individual who receives a lump sum distribution of &#10;107.30  pension or retirement benefits from a firefighters' relief association for service performed &#10;107.31  as a volunteer firefighter<ins>;</ins>&#10;107.32  <ins>(2) "survivor of a deceased active or deferred volunteer firefighter" means the legally </ins>&#10;107.33  <ins>married spouse of a deceased volunteer firefighter, or, if none, the surviving minor child or </ins>&#10;107.34  <ins>minor children of a deceased volunteer firefighter; </ins>&#10;108.1   <ins>(3) "active volunteer firefighter" means a person who regularly renders fire </ins>&#10;108.2   <ins>suppression service for a municipal fire department or an independent nonprofit firefighting </ins>&#10;108.3   <ins>corporation, who has met the statutory and other requirements for relief association </ins>&#10;108.4   <ins>membership, and who has been a fully qualified member of the relief association for </ins>&#10;108.5   <ins>at least one month; and</ins>&#10;108.6   <ins>(4) "deferred volunteer firefighter" means a former active volunteer firefighter who </ins>&#10;108.7   <ins>terminated active firefighting service, has sufficient service credit from the applicable </ins>&#10;108.8   <ins>relief association to be entitled to a service pension, but has not applied for or has not </ins>&#10;108.9   <ins>received the service pension</ins>.&#10;108.10      Subd. 2. <b>Payment of supplemental benefit.</b> <ins>(a) </ins>Upon the payment by a firefighters' &#10;108.11  relief association of a lump sum distribution to a qualified recipient, the association must &#10;108.12  pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the &#10;108.13  contrary, the relief association may pay the supplemental benefit out of its special fund. &#10;108.14  The amount of this benefit equals ten percent of the regular lump sum distribution that &#10;108.15  is paid on the basis of service as a volunteer firefighter. In no case may the amount of &#10;108.16  the supplemental benefit exceed $1,000.&#10;108.17  <ins>(b) Upon the payment by a relief association of a lump sum survivor benefit or </ins>&#10;108.18  <ins>funeral benefit to a survivor of a deceased active volunteer firefighter or of a deceased </ins>&#10;108.19  <ins>deferred volunteer firefighter, the association may pay a supplemental survivor benefit </ins>&#10;108.20  <ins>to the survivor of the deceased active or deferred volunteer firefighter from the special </ins>&#10;108.21  <ins>fund of the relief association if its articles of incorporation or bylaws so provide. The </ins>&#10;108.22  <ins>amount of the supplemental survivor benefit is 20 percent of the survivor benefit or funeral </ins>&#10;108.23  <ins>benefit, but not to exceed $2,000.</ins>&#10;108.24      Subd. 3. <b>State reimbursement.</b> <ins>(a) </ins>By February 15 of each year, the<ins> treasurer of </ins>&#10;108.25  <ins>the</ins> relief association shall apply to the commissioner of revenue for state reimbursement &#10;108.26  of the amount of supplemental benefits paid under subdivision 2 during the preceding &#10;108.27  calendar year. By March 15 the commissioner shall reimburse the relief association for the &#10;108.28  amount of the supplemental benefits paid to qualified recipients. &#10;108.29  <ins>(b) </ins>The commissioner of revenue shall prescribe the form of and supporting &#10;108.30  information that must be supplied as part of the application for state reimbursement. &#10;108.31  <ins>(c) </ins>The reimbursement payment must be deposited in the special fund of the relief &#10;108.32  association. &#10;108.33  <ins>(d) </ins>A sum sufficient to make the payments is appropriated from the general fund &#10;108.34  to the commissioner of revenue.&#10;109.1       Subd. 4. <b>In lieu of income tax exclusion.</b> <ins>(a)</ins> The supplemental benefit provided &#10;109.2   by this section is in lieu of the state income tax exclusion for lump sum distributions of &#10;109.3   retirement benefits paid to volunteer firefighters. &#10;109.4   <ins>(b) </ins>If the law is modified to exclude or exempt volunteer firefighters' lump sum &#10;109.5   distributions from state income taxation, the supplemental benefits under this section &#10;109.6   may no longer be paid beginning with the first calendar year in which the exclusion or &#10;109.7   exemption is effective. This subdivision does not apply to exemption of all or part of a &#10;109.8   lump sum distribution under section  290.032 or  290.0802. &#10;109.9       <ins>Subd. 5.</ins> <ins><b>Retroactive reimbursement in certain instances. </b></ins> <ins>A supplemental </ins>&#10;109.10  <ins>survivor or funeral benefit may be paid by a relief association for the death of an active </ins>&#10;109.11  <ins>volunteer firefighter or of a deferred volunteer firefighter that occurred on or after August </ins>&#10;109.12  <ins>1, 2005, if the relief association articles of incorporation or bylaws so provide for a </ins>&#10;109.13  <ins>supplemental survivor benefit and for retroactivity.</ins>&#10;&#10;<a id="go.13.6.0"></a>109.14      Sec. 6. <ins><b>RANDALL FIREMEN'S RELIEF ASSOCIATION; REVISED BENEFIT </b></ins>&#10;109.15  <ins><b>FOR SPOUSE OF DECEASED FIREFIGHTER.</b></ins>&#10;109.16      <ins>Subdivision 1.</ins> <ins><b>Application. </b></ins> <ins>This section applies to a surviving spouse of a person </ins>&#10;109.17  <ins>who:</ins>&#10;109.18  <ins>(1) was born on June 21, 1973;</ins>&#10;109.19  <ins>(2) as a member of the Randall Firemen's Relief Association provided one year and </ins>&#10;109.20  <ins>ten months of service to the associated fire department and had one year of service credit </ins>&#10;109.21  <ins>in the association on the date of death; and</ins>&#10;109.22  <ins>(3) was killed in a construction accident on October 28, 2005.</ins>&#10;109.23      <ins>Subd. 2.</ins> <ins><b>Eligibility for benefit.</b></ins> <ins>Notwithstanding any law to the contrary, the </ins>&#10;109.24  <ins>eligible person described in subdivision 1 is entitled to receive a survivor benefit from the </ins>&#10;109.25  <ins>Randall Firemen's Relief Association benefit plan as revised in November 2005, not to </ins>&#10;109.26  <ins>exceed the survivor benefit amount that would be applicable if the firefighter had lived </ins>&#10;109.27  <ins>until a day after the effective date of the increased minimum surviving spouse benefit </ins>&#10;109.28  <ins>approved by the Randall City Council in November 2005, consistent with Minnesota </ins>&#10;109.29  <ins>Statutes, section 424A.02, subdivision 9.</ins>&#10;109.30      <ins>Subd. 3.</ins> <ins><b>Restrictions.</b></ins> <ins>This section does not authorize payment of more than </ins>&#10;109.31  <ins>a single survivor benefit to the eligible individual specified in subdivision 1.  If a </ins>&#10;109.32  <ins>survivor benefit has been paid to the eligible individual by the Randall Firemen's Relief </ins>&#10;109.33  <ins>Association, this section authorizes payment to the eligible individual of the difference </ins>&#10;109.34  <ins>between the amount previously paid and the amount payable under the Randall Firemen's </ins>&#10;109.35  <ins>Relief Association benefit plan as revised in November 2005.</ins>&#10;&#10;<a id="go.13.7.0"></a>110.1       Sec. 7. <ins><b>EFFECTIVE DATE.</b></ins>&#10;110.2   <ins>(a) Sections 1 and 4 are effective July 1, 2006.</ins>&#10;110.3   <ins>(b) Section 2 is effective January 1, 2008.</ins>&#10;110.4   <ins>(c) Section 3 is effective the day following final enactment and applies retroactively </ins>&#10;110.5   <ins>to January 1, 2006.</ins>&#10;110.6   <ins>(d) Section 6 is effective the day after the date on which the Randall City Council and </ins>&#10;110.7   <ins>the chief clerical office of the city of Randall complete, in a timely manner, compliance </ins>&#10;110.8   <ins>with Minnesota Statutes, section 645.021, subdivisions 2 and 3.</ins>&#10;&#10;<a id="go.14.0.0"></a>110.9                                          <b>ARTICLE 14</b>&#10;110.10                      <b>ONE PERSON AND SMALL GROUP RETIREMENT PROVISIONS</b>&#10;&#10;<a id="go.14.1.0"></a>110.11      Section 1. <ins><b>CORRECTING PLAN COVERAGE ERROR BY PROVIDING A </b></ins>&#10;110.12  <ins><b>PUBLIC EMPLOYEES POLICE AND FIRE RETIREMENT PLAN ANNUITY.</b></ins>&#10;110.13      <ins>Subdivision 1.</ins> <ins><b>Purpose.</b></ins> <ins>The annuity provided under this section is intended </ins>&#10;110.14  <ins>to compensate for an error in pension coverage.  Due to the employment specified in </ins>&#10;110.15  <ins>subdivision 2, an eligible individual specified in subdivision 2 should have become a </ins>&#10;110.16  <ins>member of the public employees police and fire retirement plan but was incorrectly placed </ins>&#10;110.17  <ins>in the St. Paul Fire Department Relief Association retirement plan.</ins>&#10;110.18      <ins>Subd. 2.</ins> <ins><b>Eligibility.</b></ins> <ins>(a) An eligible individual under paragraph (b) is authorized to </ins>&#10;110.19  <ins>receive the benefit specified in subdivision 4, upon satisfying all requirements specified </ins>&#10;110.20  <ins>in this section.</ins>&#10;110.21  <ins>(b) An eligible individual is an individual who:</ins>&#10;110.22  <ins>(1) was born on April 24, 1951;</ins>&#10;110.23  <ins>(2) was hired as a St. Paul firefighter with a certified appointment date of June 13, </ins>&#10;110.24  <ins>1980, but first earned salary as a St. Paul firefighter on June 30, 1980;</ins>&#10;110.25  <ins>(3) was erroneously placed in the St. Paul Fire Department Relief Association </ins>&#10;110.26  <ins>retirement plan due to that employment; and </ins>&#10;110.27  <ins>(4) terminated from the St. Paul Fire Department employment on January 3, 1990.</ins>&#10;110.28      <ins>Subd. 3.</ins> <ins><b>Additional employee contribution or refund amount.</b></ins> <ins>(a) If a valid </ins>&#10;110.29  <ins>annuity application is made under subdivision 7, the executive director of the Public </ins>&#10;110.30  <ins>Employees Retirement Association shall determine the employee contributions that </ins>&#10;110.31  <ins>an eligible individual under subdivision 2 would have made to the public employees </ins>&#10;110.32  <ins>police and fire retirement plan fund, if coverage had been provided by that plan for </ins>&#10;110.33  <ins>the employment period specified in subdivision 2, and from each of these contribution </ins>&#10;110.34  <ins>amounts the employee contribution actually made by the eligible individual to the St. Paul </ins>&#10;110.35  <ins>Fire Department Relief Association for the same payroll period shall be subtracted.  These </ins>&#10;111.1   <ins>differences, plus 8.5 percent annual compound interest from the date the public employees </ins>&#10;111.2   <ins>police and fire retirement plan contribution would have been made until the first of the </ins>&#10;111.3   <ins>month after a valid annuity application has been received, shall be aggregated.</ins>&#10;111.4   <ins>(b) If the aggregate amount under paragraph (a) is a positive number, the total </ins>&#10;111.5   <ins>amount shall be paid in a lump sum to the executive director of the Public Employees </ins>&#10;111.6   <ins>Retirement Association.  The executive director shall notify the eligible individual </ins>&#10;111.7   <ins>in writing of the required amount.  To be eligible for the current or deferred annuity </ins>&#10;111.8   <ins>specified in subdivision 4, the eligible individual must pay the amount required under this </ins>&#10;111.9   <ins>paragraph, if applicable, within three months of the executive director's notification.</ins>&#10;111.10  <ins>(c) If the aggregate amount computed under paragraph (a) is a negative amount, the </ins>&#10;111.11  <ins>value of the contributions that the eligible employee made to the local relief association </ins>&#10;111.12  <ins>exceeded the value of employee contributions that would have been made to the public </ins>&#10;111.13  <ins>employees police and fire fund.  This aggregate negative amount shall be multiplied by </ins>&#10;111.14  <ins>minus one and the resulting amount shall be refunded to the eligible individual by the city </ins>&#10;111.15  <ins>of St. Paul.  The executive director shall inform the eligible individual of the refund </ins>&#10;111.16  <ins>amount in writing, and shall notify the city of St. Paul.  The city of St. Paul shall pay this </ins>&#10;111.17  <ins>amount to the eligible individual within 30 days of notification.</ins>&#10;111.18      <ins>Subd. 4.</ins> <ins><b>Benefit amount.</b></ins> <ins>The eligible individual is entitled to apply for an annuity, </ins>&#10;111.19  <ins>as further specified in subdivision 7, and to receive a public employees police and fire </ins>&#10;111.20  <ins>retirement plan retirement annuity computed based on the version of Minnesota Statutes, </ins>&#10;111.21  <ins>chapter 353, in effect on the date that the eligible individual terminated from St. Paul Fire </ins>&#10;111.22  <ins>Department Relief Association employment.</ins>&#10;111.23      <ins>Subd. 5.</ins> <ins><b>Calculation of reserves; payment by city of St. Paul.</b></ins> <ins>The executive </ins>&#10;111.24  <ins>director of the Public Employees Retirement Association shall compute the full required </ins>&#10;111.25  <ins>reserves for the annuity determined under subdivision 4 using all applicable actuarial </ins>&#10;111.26  <ins>assumptions for the public employees police and fire retirement plan.  This amount, after </ins>&#10;111.27  <ins>deducting the amount received by the Public Employees Retirement Association under </ins>&#10;111.28  <ins>subdivision 3, paragraph (b), if applicable, is to be paid to the executive director of the </ins>&#10;111.29  <ins>Public Employees Retirement Association in a lump sum by the city of St. Paul.  The </ins>&#10;111.30  <ins>executive director shall notify the chief administrative officer of the city of St. Paul in </ins>&#10;111.31  <ins>writing of the payment amount required under this subdivision.  This notification shall be </ins>&#10;111.32  <ins>made by the executive director within one month following the receipt by the executive </ins>&#10;111.33  <ins>director of any amount required under subdivision 3, paragraph (b), if applicable.  The </ins>&#10;111.34  <ins>city of St. Paul must pay the amount required under this subdivision within 30 days after </ins>&#10;111.35  <ins>receipt of the executive director's notification.</ins>&#10;112.1       <ins>Subd. 6.</ins> <ins><b>Actions upon failure to pay.</b></ins> <ins>If the city of St. Paul fails to transmit the </ins>&#10;112.2   <ins>amount required under subdivision 5 in a timely manner, or fails to make a timely refund </ins>&#10;112.3   <ins>under subdivision 3, paragraph (c), if applicable, the executive director of the Public </ins>&#10;112.4   <ins>Employees Retirement Association shall notify the commissioner of finance of this </ins>&#10;112.5   <ins>nonpayment or nonpayments, and the commissioner of finance shall deduct the applicable </ins>&#10;112.6   <ins>amount or amounts from any state aid otherwise payable to the city and transmit the </ins>&#10;112.7   <ins>amount required under subdivision 5 to the executive director for deposit in the public </ins>&#10;112.8   <ins>employees police and fire fund.  If the city of St. Paul fails to make a payment required </ins>&#10;112.9   <ins>under subdivision 3, paragraph (c), if applicable, the commissioner of finance will make </ins>&#10;112.10  <ins>any necessary refund, with reimbursement through the withholding of aid, as stated in </ins>&#10;112.11  <ins>this subdivision.</ins>&#10;112.12      <ins>Subd. 7.</ins> <ins><b>Annuity application.</b></ins> <ins>An eligible individual described in subdivision 2 </ins>&#10;112.13  <ins>shall apply in writing on forms provided by the Public Employees Retirement Association </ins>&#10;112.14  <ins>for the annuity provided by this section.  The application must be made before January 1, </ins>&#10;112.15  <ins>2007, and must include all necessary documentation of the applicability of this section and </ins>&#10;112.16  <ins>any other relevant information which the executive director may require.</ins>&#10;112.17      <ins>Subd. 8.</ins> <ins><b>Service credit grant.</b></ins> <ins>Service credit in the public employees police and </ins>&#10;112.18  <ins>fire retirement plan for the eligible individual's employment period as a St. Paul firefighter </ins>&#10;112.19  <ins>shall be granted following the filing of a valid application for an annuity under subdivision </ins>&#10;112.20  <ins>7 and receipt by the executive director of any amount applicable under subdivision 3, </ins>&#10;112.21  <ins>paragraph (b).</ins>&#10;&#10;<a id="go.14.2.0"></a>112.22      Sec. 2. <ins><b>PERA-P&amp;F; PURCHASE OF SERVICE CREDIT.</b></ins>&#10;112.23      <ins>Subdivision 1.</ins> <ins><b>Eligibility.</b></ins> <ins>An eligible person may purchase allowable service credit </ins>&#10;112.24  <ins>from the public employees police and fire plan for the period from November 23, 1984, </ins>&#10;112.25  <ins>to March 16, 1985.  An eligible person is a person who:</ins>&#10;112.26  <ins>(1) is currently a member of the public employees police and fire plan; and </ins>&#10;112.27  <ins>(2) was employed by the city of Faribault as a firefighter since November 23, 1984, </ins>&#10;112.28  <ins>but was not covered by the public employees police and fire plan from November 23, </ins>&#10;112.29  <ins>1984, until March 16, 1985, despite the provided firefighting service.</ins>&#10;112.30      <ins>Subd. 2.</ins> <ins><b>Purchase requirements.</b></ins> <ins>An eligible person must apply to the executive </ins>&#10;112.31  <ins>director of the Public Employees Retirement Association to make the service credit </ins>&#10;112.32  <ins>purchase authorized in this section.  The application must be in writing and must contain </ins>&#10;112.33  <ins>documentation required by the executive director.</ins>&#10;113.1       <ins>Subd. 3.</ins> <ins><b>Payment.</b></ins> <ins>If an eligible person meets the requirements to purchase service </ins>&#10;113.2   <ins>credit under this section, the public employees police and fire fund must be paid the </ins>&#10;113.3   <ins>amount determined under Minnesota Statutes, section 356.551.</ins>&#10;113.4       <ins>Subd. 4.</ins> <ins><b>Additional requirements.</b></ins> <ins>(a) In addition to the one-year payment </ins>&#10;113.5   <ins>limitation in Minnesota Statutes, section 356.551, the authority provided by this section </ins>&#10;113.6   <ins>is voided if the amount required under subdivision 3, from an eligible person is not </ins>&#10;113.7   <ins>paid to the executive director of the Public Employees Retirement Association prior to </ins>&#10;113.8   <ins>termination of service by the eligible person.</ins>&#10;113.9   <ins>(b) Notwithstanding Minnesota Statutes, section 356.551, allowable service credit in </ins>&#10;113.10  <ins>the public employees police and fire plan for the eligible person must be granted upon </ins>&#10;113.11  <ins>receipt by the executive director of payment from the eligible person of the amount </ins>&#10;113.12  <ins>required under subdivision 3.</ins>&#10;113.13  <ins>(c) If the city of Faribault fails to pay the amount required under subdivision 3, within </ins>&#10;113.14  <ins>30 days of notification from the executive director of the amount required, the executive </ins>&#10;113.15  <ins>director shall inform the commissioner of the Department of Finance of the amount of the </ins>&#10;113.16  <ins>deficiency, and the amount must be deducted from any subsequent state aid to the city.</ins>&#10;&#10;<a id="go.14.3.0"></a>113.17      Sec. 3. <ins><b>TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF PRIOR </b></ins>&#10;113.18  <ins><b>SERVICE CREDIT FOR MONTANA TEACHING SERVICE.</b></ins>&#10;113.19  <ins>(a) An eligible person described in paragraph (b) is authorized to purchase service </ins>&#10;113.20  <ins>credit, in accordance with Minnesota Statutes, section 356.551, from the Teachers </ins>&#10;113.21  <ins>Retirement Association coordinated program for a period of teaching service in Montana </ins>&#10;113.22  <ins>public schools, not to exceed ten years.</ins>&#10;113.23  <ins>(b) An eligible person is a person who:</ins>&#10;113.24  <ins>(1) is currently an active member of the Teachers Retirement Association for </ins>&#10;113.25  <ins>teaching service at the Northfield Middle School in Independent School District No. 659;</ins>&#10;113.26  <ins>(2) was born on January 1, 1959; and </ins>&#10;113.27  <ins>(3) was a teacher at the Pine Hills School in Miles City, Montana, for 11.2 years with </ins>&#10;113.28  <ins>coverage for that service by the Montana Teachers Retirement System.</ins>&#10;113.29  <ins>(c) An eligible person described in paragraph (b) is authorized to apply with the </ins>&#10;113.30  <ins>executive director of the Teachers Retirement Association to make the service credit </ins>&#10;113.31  <ins>purchase under this section.  The application must be in writing and must include all </ins>&#10;113.32  <ins>necessary documentation of the applicability of this section, and any other relevant </ins>&#10;113.33  <ins>information which the executive director may require.  The payment required under this </ins>&#10;113.34  <ins>section to receive the service credit must be received by the executive director of the </ins>&#10;113.35  <ins>Teachers Retirement Association before December 31, 2006, and before the eligible </ins>&#10;114.1   <ins>person's retirement or termination from service.  The service credit authorized by this </ins>&#10;114.2   <ins>section shall be granted upon receipt of the service credit purchase payment by the </ins>&#10;114.3   <ins>executive director.</ins>&#10;114.4   <ins>(d) The authority under this section is voided if an eligible person under paragraph </ins>&#10;114.5   <ins>(b) retains a right to an annuity from the Montana Teachers Retirement System.</ins>&#10;&#10;<a id="go.14.4.0"></a>114.6       Sec. 4. <ins><b>PERA-GENERAL; PUBLIC DEFENDER SERVICE CREDIT </b></ins>&#10;114.7   <ins><b>PURCHASE.</b></ins>&#10;114.8   <ins>(a) An eligible person described in paragraph (b) may purchase allowable service </ins>&#10;114.9   <ins>credit in the general employees retirement plan of the Public Employees Retirement </ins>&#10;114.10  <ins>Association for the period described in paragraph (c) by making the payment required </ins>&#10;114.11  <ins>under paragraph (d).</ins>&#10;114.12  <ins>(b) An eligible person is a person who:</ins>&#10;114.13  <ins>(1) was born on October 7, 1949;</ins>&#10;114.14  <ins>(2) was employed as a public defender by the Tenth Judicial District on July 1, 1987;</ins>&#10;114.15  <ins>(3) was also retained as an independent contractor by Washington County as a </ins>&#10;114.16  <ins>public defender as of June 12, 1989;</ins>&#10;114.17  <ins>(4) was determined to have had deductions related to the Tenth Judicial District </ins>&#10;114.18  <ins>employment for the general employees retirement plan of the Public Employees </ins>&#10;114.19  <ins>Retirement Association taken in error and had those deductions returned on January 7, </ins>&#10;114.20  <ins>1991; and </ins>&#10;114.21  <ins>(5) is currently a member of the general state employees retirement plan of the </ins>&#10;114.22  <ins>Minnesota State Retirement System.</ins>&#10;114.23  <ins>(c) The period of allowable service credit available for purchase under this section </ins>&#10;114.24  <ins>is 21 months.</ins>&#10;114.25  <ins>(d) The prior service credit purchase payment must be calculated under Minnesota </ins>&#10;114.26  <ins>Statutes, section 356.551.</ins>&#10;&#10;<a id="go.14.5.0"></a>114.27      Sec. 5. <ins><b>PUBLIC EMPLOYEES POLICE AND FIRE PLAN; EMPLOYEE </b></ins>&#10;114.28  <ins><b>ORGANIZATION BUSINESS AGENT LEAVE OF ABSENCE SERVICE CREDIT </b></ins>&#10;114.29  <ins><b>PURCHASE.</b></ins>&#10;114.30  <ins>(a) An eligible person described in paragraph (b) is entitled to purchase allowable </ins>&#10;114.31  <ins>service credit in the public employees police and fire retirement plan for the period </ins>&#10;114.32  <ins>described in paragraph (c) by making the payment required under paragraph (d).</ins>&#10;114.33  <ins>(b) An eligible person is a person who:</ins>&#10;114.34  <ins>(1) was born on January 3, 1959;</ins>&#10;115.1   <ins>(2) was employed by the Minnetonka Police Department before 1995;</ins>&#10;115.2   <ins>(3) was granted a leave of absence from employment by the Minnetonka Police </ins>&#10;115.3   <ins>Department in 1995 to serve as the business agent for an employee labor organization; and </ins>&#10;115.4   <ins>(4) returned to employment with the Minnetonka Police Department from the leave </ins>&#10;115.5   <ins>of absence in 1997.</ins>&#10;115.6   <ins>(c) The period of service credit available for purchase under this section is one year.</ins>&#10;115.7   <ins>(d) The prior service credit purchase payment must be calculated under Minnesota </ins>&#10;115.8   <ins>Statutes, section 356.551.</ins>&#10;&#10;<a id="go.14.6.0"></a>115.9       Sec. 6. <ins><b>PERA-GENERAL; PUBLIC GOLF COURSE EMPLOYEE SERVICE </b></ins>&#10;115.10  <ins><b>CREDIT PURCHASE.</b></ins>&#10;115.11  <ins>(a) An eligible person described in paragraph (b) is entitled to purchase allowable </ins>&#10;115.12  <ins>service credit from the general employees retirement plan of the Public Employees </ins>&#10;115.13  <ins>Retirement Association for the period of employment by the city of Anoka at the </ins>&#10;115.14  <ins>Greenhaven Golf Course between March 1, 1984, and December 28, 1997, that qualified as </ins>&#10;115.15  <ins>employment by a public employee under Minnesota Statutes, section 353.01, subdivisions </ins>&#10;115.16  <ins>2, 2a, and 2b, that was not previously credited by the retirement plan.</ins>&#10;115.17  <ins>(b) An eligible person is a person who:</ins>&#10;115.18  <ins>(1) was born on July 18, 1954;</ins>&#10;115.19  <ins>(2) was first employed by the city of Anoka at the Greenhaven Golf Course as a </ins>&#10;115.20  <ins>part-time employee in 1978;</ins>&#10;115.21  <ins>(3) was incorrectly characterized as an independent contractor by the city of Anoka </ins>&#10;115.22  <ins>during the period 1982-1998, although the person was provided health insurance and other </ins>&#10;115.23  <ins>employment recognition during portions of that period; and</ins>&#10;115.24  <ins>(4) became a member of the general employees retirement plan of the Public </ins>&#10;115.25  <ins>Employees Retirement Association in 1998.</ins>&#10;115.26  <ins>(c) The eligible person described in paragraph (b) must apply with the executive </ins>&#10;115.27  <ins>director of the Public Employees Retirement Association to make the service credit </ins>&#10;115.28  <ins>purchase under this section. The application must be in writing and must include all </ins>&#10;115.29  <ins>necessary documentation of the applicability of this section and any other relevant </ins>&#10;115.30  <ins>information that the executive director may require.</ins>&#10;115.31  <ins>(d) Allowable service credit under Minnesota Statutes, section 353.01, subdivision </ins>&#10;115.32  <ins>16, must be granted by the general employees retirement plan of the Public Employees </ins>&#10;115.33  <ins>Retirement Association to the account of the eligible person upon the receipt of the prior </ins>&#10;115.34  <ins>service credit purchase payment amount required under Minnesota Statutes, section </ins>&#10;115.35  <ins>356.551.</ins>&#10;116.1   <ins>(e) Of the prior service credit purchase payment amount under Minnesota Statutes, </ins>&#10;116.2   <ins>section 356.551, the eligible person must pay an amount equal to the employee </ins>&#10;116.3   <ins>contribution rate or rates in effect during the uncredited employment period applied to the </ins>&#10;116.4   <ins>actual salary rates in effect during the period, plus annual compound interest at the rate of </ins>&#10;116.5   <ins>8.5 percent from the date the member contribution payment should have been made if </ins>&#10;116.6   <ins>made in a timely fashion until the date on which the contribution is actually made. If the </ins>&#10;116.7   <ins>equivalent member contribution payment, plus interest, is made, the city of Anoka shall </ins>&#10;116.8   <ins>pay the balance of the total prior service credit purchase payment amount under Minnesota </ins>&#10;116.9   <ins>Statutes, section 356.551, within 60 days of notification by the executive director of the </ins>&#10;116.10  <ins>Public Employees Retirement Association of the member contribution equivalent payment.</ins>&#10;116.11  <ins>(f) Authority for an eligible person to make a prior service credit purchase under this </ins>&#10;116.12  <ins>section expires on June 30, 2007.</ins>&#10;116.13  <ins>(g) If the city of Anoka fails to pay its portion of the prior service credit purchase </ins>&#10;116.14  <ins>payment amount under paragraph (e), the executive director of the Public Employees </ins>&#10;116.15  <ins>Retirement Association must notify the commissioners of finance and revenue of that fact </ins>&#10;116.16  <ins>and the commissioners shall order the deduction of the required payment amount from </ins>&#10;116.17  <ins>the next subsequent payment of any state aid to the city of Anoka and be transmitted </ins>&#10;116.18  <ins>to the general employees retirement fund.</ins>&#10;&#10;<a id="go.14.7.0"></a>116.19      Sec. 7. <ins><b>TEACHERS RETIREMENT ASSOCIATION; REFUND REPAYMENT </b></ins>&#10;116.20  <ins><b>OF CERTAIN TRANSFERRED AMOUNTS.</b></ins>&#10;116.21  <ins>(a) Notwithstanding Minnesota Statutes, section 352D.12 or 354.50, or any other </ins>&#10;116.22  <ins>provision to the contrary, an eligible person described in paragraph (b) may repay to </ins>&#10;116.23  <ins>the Teachers Retirement Association the amount specified in paragraph (c) and thereby </ins>&#10;116.24  <ins>restore the person's prior allowable and formula service credit under Minnesota Statutes, </ins>&#10;116.25  <ins>chapter 354.</ins>&#10;116.26  <ins>(b) An eligible person is a person who:</ins>&#10;116.27  <ins>(1) was born on July 17, 1947;</ins>&#10;116.28  <ins>(2) taught for ten years with Independent School District No. 191, Burnsville;</ins>&#10;116.29  <ins>(3) was employed by the Minnesota Educational Computing Corporation in 1984 </ins>&#10;116.30  <ins>and 1985;</ins>&#10;116.31  <ins>(4) transferred accumulated employee contributions and an equal employer </ins>&#10;116.32  <ins>contribution amount from the Teachers Retirement Association to the unclassified state </ins>&#10;116.33  <ins>employees retirement program of the Minnesota State Retirement System in 1985; and</ins>&#10;117.1   <ins>(5) after employment in the private sector in educational computing, returned </ins>&#10;117.2   <ins>to teaching employed by Independent School District No. 196, Rosemount-Apple </ins>&#10;117.3   <ins>Valley-Eagan.</ins>&#10;117.4   <ins>(c) The amount of the refund to be repaid to the Teachers Retirement Association is </ins>&#10;117.5   <ins>an amount equal to the amount transferred from the Teachers Retirement Association to </ins>&#10;117.6   <ins>the unclassified state employees retirement program of the Minnesota State Retirement </ins>&#10;117.7   <ins>System under Laws 1984, chapter 619, section 6, subdivision 3, plus compound annual </ins>&#10;117.8   <ins>interest at the rate of 8.5 percent from the date on which the amount was transferred from </ins>&#10;117.9   <ins>the Teachers Retirement Association to the date on which the transfer amount is repaid.</ins>&#10;117.10  <ins>(d) Upon the repayment of the transfer amount, plus interest, the allowable and </ins>&#10;117.11  <ins>formula service credit in the Teachers Retirement Association under Minnesota Statutes, </ins>&#10;117.12  <ins>section 354.05, subdivisions 13 and 25, related to the transferred amount in 1985, must </ins>&#10;117.13  <ins>be restored to the eligible person.</ins>&#10;117.14  <ins>(e) The transfer amount repayment, plus interest, may be made through an institution </ins>&#10;117.15  <ins>to institution transfer.</ins>&#10;117.16  <ins>(f) This provision expires on July 1, 2007.</ins>&#10;&#10;<a id="go.14.8.0"></a>117.17      Sec. 8. <ins><b>TEACHERS RETIREMENT ASSOCIATION; PROSPECTIVE </b></ins>&#10;117.18  <ins><b>TEACHERS RETIREMENT ASSOCIATION COVERAGE; PURCHASE OF </b></ins>&#10;117.19  <ins><b>PAST SERVICE CREDIT.</b></ins>&#10;117.20  <ins>(a) An eligible person described in paragraph (b) is authorized to become a </ins>&#10;117.21  <ins>coordinated member of the Teachers Retirement Association, and to purchase service and </ins>&#10;117.22  <ins>salary credit in the Teachers Retirement Association coordinated plan retroactive from </ins>&#10;117.23  <ins>January 1, 1995, upon making an election under paragraph (c) and upon making the </ins>&#10;117.24  <ins>required payment under paragraph (d).</ins>&#10;117.25  <ins>(b) An eligible person is a person who:</ins>&#10;117.26  <ins>(1) was born on September 10, 1958;</ins>&#10;117.27  <ins>(2) has prior employment covered by the Public Employees Retirement Association </ins>&#10;117.28  <ins>general plan;</ins>&#10;117.29  <ins>(3) is the director of student support services at North Hennepin Community College;</ins>&#10;117.30  <ins>(4) began working at North Hennepin Community College on February 3, 1992, with </ins>&#10;117.31  <ins>coverage for that service by the higher education individual retirement account plan; and </ins>&#10;117.32  <ins>(5) was not offered an election of Teachers Retirement Association coverage, as </ins>&#10;117.33  <ins>required under Laws 1994, chapter 508, article 1, section 10.</ins>&#10;117.34  <ins>(c)(1) To be eligible for coverage by the Teachers Retirement Association, an </ins>&#10;117.35  <ins>eligible person must submit a written application to the executive director of the Teachers </ins>&#10;118.1   <ins>Retirement Association on a form provided by the Teachers Retirement Association.  The </ins>&#10;118.2   <ins>application must include all documentation of the applicability of this section and any </ins>&#10;118.3   <ins>other relevant information that the executive director may require.  Following receipt by </ins>&#10;118.4   <ins>the executive director of the written application specified in this paragraph and receipt </ins>&#10;118.5   <ins>of the payment specified in paragraph (d):</ins>&#10;118.6   <ins>(i) Teachers Retirement Association plan membership commences as of July 1, 2006;</ins>&#10;118.7   <ins>(ii) individual retirement account plan coverage terminates for the applicable </ins>&#10;118.8   <ins>eligible person; and </ins>&#10;118.9   <ins>(iii) past salary and service credit is granted from January 1, 1995, as specified </ins>&#10;118.10  <ins>in this section.</ins>&#10;118.11  <ins>(2) The authority granted by this section is voided if the applicable eligible </ins>&#10;118.12  <ins>individual terminates from Minnesota State Colleges and Universities system employment </ins>&#10;118.13  <ins>prior to receipt by the executive director of the Teachers Retirement Association of the </ins>&#10;118.14  <ins>application specified in this paragraph and the amount specified in paragraph (d).</ins>&#10;118.15  <ins>(d) To receive the treatment specified in this section, an eligible person shall make </ins>&#10;118.16  <ins>payment of the amount determined under Minnesota Statutes, section 356.551, to the </ins>&#10;118.17  <ins>executive director of the Teachers Retirement Association for the period from January 1, </ins>&#10;118.18  <ins>1995.  The individual is authorized to cover the payment using assets transferred from the </ins>&#10;118.19  <ins>eligible individual's individual retirement account plan account, or from any other sources </ins>&#10;118.20  <ins>permitted by law.  The total amount to be paid under this paragraph shall be determined </ins>&#10;118.21  <ins>by the executive director of the Teachers Retirement Association.  Written notification of </ins>&#10;118.22  <ins>the amount required under this paragraph should be transmitted to the eligible individual. </ins>&#10;118.23  <ins>The Teachers Retirement Association is authorized to utilize the actuary jointly retained </ins>&#10;118.24  <ins>under Minnesota Statutes, section 356.214, to make the computations required under this </ins>&#10;118.25  <ins>paragraph.  The Teachers Retirement Association shall allocate the amount received under </ins>&#10;118.26  <ins>this paragraph between the Teachers Retirement Association and the Public Employees </ins>&#10;118.27  <ins>Retirement Association, or other applicable pension fund, as indicated by the full actuarial </ins>&#10;118.28  <ins>cost determination required under this paragraph.</ins>&#10;&#10;<a id="go.14.9.0"></a>118.29      Sec. 9. <ins><b>TRA; PURCHASE OF UNCREDITED MEDICAL LEAVE.</b></ins>&#10;118.30  <ins>(a) An eligible person described in paragraph (b) is entitled to purchase allowable </ins>&#10;118.31  <ins>and formula service credit in the Teachers Retirement Association for any period of </ins>&#10;118.32  <ins>medical leave that was not properly reported to the Teachers Retirement Association by </ins>&#10;118.33  <ins>Independent School District No. 197, West St. Paul, and consequently not previously </ins>&#10;118.34  <ins>audited under Minnesota Statutes, section 354.05, subdivision 13, upon the making of the </ins>&#10;118.35  <ins>payments required under paragraphs (c) and (d).</ins>&#10;119.1   <ins>(b) An eligible person is a person who:</ins>&#10;119.2   <ins>(1) was born on August 24, 1948;</ins>&#10;119.3   <ins>(2) was initially employed as a teacher in September 1970;</ins>&#10;119.4   <ins>(3) is employed by Independent School District No. 197, West St. Paul; and</ins>&#10;119.5   <ins>(4) took a medical leave during the 2003-2004 school year that was not reported to </ins>&#10;119.6   <ins>the Teachers Retirement Association in a timely fashion.</ins>&#10;119.7   <ins>(c) The eligible person shall make a payment equal to five percent of the person's </ins>&#10;119.8   <ins>2004-2005 school year salary, plus compound interest at the rate of 8.5 percent per annum </ins>&#10;119.9   <ins>from July 1, 2004, to the date on which the payment is made.</ins>&#10;119.10  <ins>(d) Upon the payment under paragraph (c), the executive director of the Teachers </ins>&#10;119.11  <ins>Retirement Association shall, within 30 days, notify Independent School District No. 197, </ins>&#10;119.12  <ins>West St. Paul, of its obligation under this section. The school district's obligation is the </ins>&#10;119.13  <ins>balance of the prior service credit purchase payment amount determined under Minnesota </ins>&#10;119.14  <ins>Statutes, section 356.551, that exceeds the payment under paragraph (c). If the school </ins>&#10;119.15  <ins>district fails to pay its obligation within 60 days following notification, the executive </ins>&#10;119.16  <ins>director shall certify that failure and the amount due to the commissioner of finance, who </ins>&#10;119.17  <ins>shall deduct the amount due from any subsequent state aid payable to Independent School </ins>&#10;119.18  <ins>District No. 197, West St. Paul, plus interest at the rate of 0.71 percent per month from the </ins>&#10;119.19  <ins>date of the payment under paragraph (c) to the date of the actual payment.</ins>&#10;119.20  <ins>(e) This provision expires on July 1, 2008.</ins>&#10;&#10;<a id="go.14.10.0"></a>119.21      Sec. 10. <ins><b>INTERNATIONAL FALLS AND RED WING SCHOOL STRIKE </b></ins>&#10;119.22  <ins><b>SERVICE CREDIT PROVISION.</b></ins>&#10;119.23  <ins>Notwithstanding any provision of Minnesota Statutes, section 356.195, a teacher </ins>&#10;119.24  <ins>who was covered by the Teachers Retirement Association and who was on strike </ins>&#10;119.25  <ins>between September 20, 2002, and October 14, 2002, if the teacher was employed by </ins>&#10;119.26  <ins>the International Falls public schools or was on strike between October 22, 2002, and </ins>&#10;119.27  <ins>November 14, 2002, if the teacher was employed by the Red Wing public schools, is </ins>&#10;119.28  <ins>authorized to make a payment to the Teachers Retirement Association and receive </ins>&#10;119.29  <ins>allowable and formula service credit under Minnesota Statutes, section 354.05, </ins>&#10;119.30  <ins>subdivisions 13 and 25, for the applicable strike period under Minnesota Statutes, section </ins>&#10;119.31  <ins>356.195, subdivision 2, paragraph (c).</ins>&#10;&#10;<a id="go.14.11.0"></a>119.32      Sec. 11. <ins><b>PUBLIC EMPLOYEES RETIREMENT ASSOCIATION-GENERAL; </b></ins>&#10;119.33  <ins><b>BLOOMINGTON PUBLIC SCHOOLS CUSTODIAN SERVICE CREDIT </b></ins>&#10;119.34  <ins><b>PURCHASE AUTHORIZATION.</b></ins>&#10;120.1   <ins>(a) Notwithstanding any provision of law to the contrary, an eligible person </ins>&#10;120.2   <ins>specified in paragraph (b) may purchase allowable service credit in the general employees </ins>&#10;120.3   <ins>retirement plan of the Public Employees Retirement Association for the years and </ins>&#10;120.4   <ins>months that elapsed between the date of hire by Independent School District No. 271, </ins>&#10;120.5   <ins>Bloomington, and the date on which the person was recorded as a member of the general </ins>&#10;120.6   <ins>employees retirement plan of the Public Employees Retirement Association upon the </ins>&#10;120.7   <ins>payment of the amount set forth in paragraph (c).</ins>&#10;120.8   <ins>(b) An eligible person is a person who was employed by Independent School District </ins>&#10;120.9   <ins>No. 271, Bloomington, on the applicable indicated employment date, but who was not </ins>&#10;120.10  <ins>reported to the Public Employees Retirement Association as a member of the general </ins>&#10;120.11  <ins>employees retirement plan until the applicable indicated membership record date, and who </ins>&#10;120.12  <ins>consequently has an uncredited period of school district employment, as follows:</ins>&#10;<rs_table>120.13      <ins>employee</ins>       <ins>employment date</ins><ins>membership record date</ins>&#10;120.14      <ins>A</ins>              <ins>August 29, 1985 </ins><ins>January 1, 1989 </ins>&#10;120.15      <ins>B </ins>             <ins>April 29, 1986 </ins><ins>November 16, 1988 </ins>&#10;120.16      <ins>C </ins>             <ins>January 7, 1987 </ins><ins>June 12, 1989 </ins> &#10;120.17      <ins>D </ins>             <ins>July 21, 1986 </ins> <ins>July 1, 1989 </ins>  &#10;120.18      <ins>E </ins>             <ins>May 22, 1988 </ins>  <ins>June 12, 1989 </ins> &#10;120.19      <ins>F </ins>             <ins>September 11, 1988 </ins><ins>June 12, 1989 </ins> &#10;120.20      <ins>G </ins>             <ins>February 9, 1989 </ins><ins>June 16, 1989 </ins> &#10;120.21      <ins>H </ins>             <ins>February 15, 1989 </ins><ins>June 16, 1989 </ins> &#10;120.22      <ins>I </ins>             <ins>March 25, 1989 </ins><ins>June 12, 1989 </ins> &#10;</rs_table>120.23  <ins>(c) The prior service credit purchase payment amount is the amount determined </ins>&#10;120.24  <ins>for each eligible person by the executive director of the Public Employees Retirement </ins>&#10;120.25  <ins>Association under Minnesota Statutes, section 356.551.</ins>&#10;120.26  <ins>(d) The eligible person shall pay an amount equal to the member contribution that </ins>&#10;120.27  <ins>the person would have paid if the person had been a member of the general employees </ins>&#10;120.28  <ins>retirement plan of the Public Employees Retirement Association during the period </ins>&#10;120.29  <ins>between the applicable employment date and the applicable membership record date, </ins>&#10;120.30  <ins>plus annual compound interest on the total amount at the rate of 8.5 percent from the </ins>&#10;120.31  <ins>midpoint date of the uncredited employment period until the date on which the equivalent </ins>&#10;120.32  <ins>member contribution is paid.  Payment must be made by July 1, 2006, or by the date of the </ins>&#10;120.33  <ins>termination of employment, whichever is earlier.</ins>&#10;121.1   <ins>(e) If the eligible person makes the required payment under paragraph (d) in a timely </ins>&#10;121.2   <ins>fashion, Independent School District No. 271, Bloomington, may pay the difference </ins>&#10;121.3   <ins>between the amount determined under paragraph (c) and the amount paid under paragraph </ins>&#10;121.4   <ins>(d).  If Independent School District No. 271, Bloomington, does not pay that balance </ins>&#10;121.5   <ins>within 30 days of notification by the executive director of the Public Employees Retirement </ins>&#10;121.6   <ins>Association of the payment by an eligible person under paragraph (d), the executive </ins>&#10;121.7   <ins>director shall notify the commissioner of finance of that fact and the commissioner of </ins>&#10;121.8   <ins>finance shall deduct the balance, plus compound interest on that amount at the rate of 1.5 </ins>&#10;121.9   <ins>percent per month or portion of a month that has elapsed from the effective date of this </ins>&#10;121.10  <ins>section, from any state aid payable to the school district and shall transmit that amount to </ins>&#10;121.11  <ins>the executive director of the Public Employees Retirement Association.</ins>&#10;121.12  <ins>(f) The eligible person shall provide any relevant documentation related to the </ins>&#10;121.13  <ins>eligibility to make this service credit purchase that is required by the executive director of </ins>&#10;121.14  <ins>the Public Employees Retirement Association.</ins>&#10;121.15  <ins>(g) Only periods of employment when the eligible person would have been </ins>&#10;121.16  <ins>eligible for coverage by the general employees retirement plan of the Public Employees </ins>&#10;121.17  <ins>Retirement Association is purchasable under this section.</ins>&#10;&#10;<a id="go.14.12.0"></a>121.18      Sec. 12. <ins><b>PERA-GENERAL; AUTHORIZING TRANSFER OF COVERAGE </b></ins>&#10;121.19  <ins><b>FROM DEFINED CONTRIBUTION PLAN IN CERTAIN INSTANCES.</b></ins>&#10;121.20  <ins>(a) An eligible person described in paragraph (b) may elect under paragraph (c) to </ins>&#10;121.21  <ins>transfer past retirement coverage from the defined contribution retirement plan of the </ins>&#10;121.22  <ins>public employees retirement association to the general employees retirement plan of the </ins>&#10;121.23  <ins>Public Employees Retirement Association by authorizing the transfer of assets specified in </ins>&#10;121.24  <ins>paragraph (d) and making the additional payment, if any, specified in paragraph (e).</ins>&#10;121.25  <ins>(b) An eligible person is a former public employee or official who:</ins>&#10;121.26  <ins>(1) was born on August 2, 1950;</ins>&#10;121.27  <ins>(2) served in the Minnesota house of representatives from 1975 to 1991;</ins>&#10;121.28  <ins>(3) served in the Minnesota senate from 1991 to 2002;</ins>&#10;121.29  <ins>(4) became the mayor of a Minnesota home rule city in January 2002; and</ins>&#10;121.30  <ins>(5) elected retirement coverage by the defined contribution retirement plan of the </ins>&#10;121.31  <ins>Public Employees Retirement Association on January 15, 2002.</ins>&#10;121.32  <ins>(c) The election of the retirement coverage transfer must be made in writing within </ins>&#10;121.33  <ins>180 days of the date of enactment of this act. The election must authorize the asset </ins>&#10;121.34  <ins>transfer specified in paragraph (d) and must be accompanied with any payment amount </ins>&#10;121.35  <ins>required under paragraph (e). Upon the transfer and payment, the electing eligible person </ins>&#10;122.1   <ins>is entitled to allowable service and salary credit under Minnesota Statutes, section 353.01, </ins>&#10;122.2   <ins>subdivisions 10 and 16, for the service and salary related to the defined contribution </ins>&#10;122.3   <ins>retirement plan coverage period.</ins>&#10;122.4   <ins>(d) The transfer amount is the total member and employer contributions and any </ins>&#10;122.5   <ins>investment performance to the credit of the eligible person in the defined contribution </ins>&#10;122.6   <ins>retirement plan of the Public Employees Retirement Association.</ins>&#10;122.7   <ins>(e) The additional payment amount is the amount by which the transfer amount </ins>&#10;122.8   <ins>under paragraph (d) is less than the amount that would be required to be transferred to </ins>&#10;122.9   <ins>the Minnesota postretirement investment fund for the coordinated program of the general </ins>&#10;122.10  <ins>employees retirement plan of the Public Employees Retirement Association retirement </ins>&#10;122.11  <ins>annuity payable to the eligible person on the first day of the month next following the </ins>&#10;122.12  <ins>date of enactment or on the first day of the month next following the day on which the </ins>&#10;122.13  <ins>eligible person is first eligible to receive a retirement annuity from the general employees </ins>&#10;122.14  <ins>retirement plan of the Public Employees Retirement Association if that date is later than </ins>&#10;122.15  <ins>the date of enactment. The former employer of the eligible employee may pay a portion of </ins>&#10;122.16  <ins>the additional payment amount, but not to exceed 52 percent of the total amount, at the </ins>&#10;122.17  <ins>discretion of the former employer.</ins>&#10;122.18  <ins>(f) The executive director of the Public Employees Retirement Association may </ins>&#10;122.19  <ins>request any relevant documentation to verify a person's status as an eligible person under </ins>&#10;122.20  <ins>this section and may audit city records to verify conformity with Minnesota Statutes, </ins>&#10;122.21  <ins>section 353.01, subdivisions 10 and 16.</ins>&#10;&#10;<a id="go.14.13.0"></a>122.22      Sec. 13. <ins><b>MSRS-GENERAL; PAYMENT OF PORTION OF ANNUITY IN </b></ins>&#10;122.23  <ins><b>CERTAIN MARRIAGE DISSOLUTIONS.</b></ins>&#10;122.24  <ins>(a) Notwithstanding the provisions of Minnesota Statutes, section 518.58, </ins>&#10;122.25  <ins>subdivision 4, or any other law to the contrary, if a court of competent jurisdiction </ins>&#10;122.26  <ins>makes a finding meeting the requirements of paragraph (b), and that finding is filed with </ins>&#10;122.27  <ins>the executive director of the Minnesota State Retirement System, an eligible person </ins>&#10;122.28  <ins>described in paragraph (c) is entitled to immediately receive the person's designated </ins>&#10;122.29  <ins>portion of the ex-spouse's public retirement plan annuity awarded as part of the applicable </ins>&#10;122.30  <ins>marriage dissolution judgement that conformed with Minnesota Statutes, section 518.58, </ins>&#10;122.31  <ins>subdivision 4, when issued.</ins>&#10;122.32  <ins>(b) The finding necessary to implement this section would be:</ins>&#10;122.33  <ins>(1) that the court in its marriage dissolution judgment intended that the eligible </ins>&#10;122.34  <ins>person described in paragraph (c) receive a portion of the person's ex-spouse's public </ins>&#10;122.35  <ins>retirement plan annuity in a timely fashion;</ins>&#10;123.1   <ins>(2) that the ex-spouse has declined to commence receipt of that public retirement </ins>&#10;123.2   <ins>plan annuity; and</ins>&#10;123.3   <ins>(3) that the decision of the ex-spouse not to draw the public retirement plan annuity </ins>&#10;123.4   <ins>was not reasonably done in pursuit of an end other than to frustrate the payment of a </ins>&#10;123.5   <ins>portion of the retirement annuity to the eligible person.</ins>&#10;123.6   <ins>(c) An eligible person is a person:</ins>&#10;123.7   <ins>(1) who was born on August 12, 1944;</ins>&#10;123.8   <ins>(2) who resides in Edina, Minnesota; </ins>&#10;123.9   <ins>(3) who was married to a member of the general state employees retirement plan of </ins>&#10;123.10  <ins>the Minnesota State Retirement System; and</ins>&#10;123.11  <ins>(4) whose marriage was dissolved on December 15, 1999.</ins>&#10;123.12  <ins>(d) If the immediate payment of the eligible person's designated portion of the </ins>&#10;123.13  <ins>ex-spouse's public retirement plan annuity occurs under this section, the executive director </ins>&#10;123.14  <ins>of the Minnesota State Retirement System shall establish a separate account for the </ins>&#10;123.15  <ins>eligible person within the state employees retirement fund, shall credit that account with </ins>&#10;123.16  <ins>the applicable percentage of the actuarial present value of the retirement annuity of the </ins>&#10;123.17  <ins>ex-spouse under the marriage dissolution judgment, and shall reduce the account of the </ins>&#10;123.18  <ins>ex-spouse by that amount. The present value of the subsequent retirement annuity of the </ins>&#10;123.19  <ins>ex-spouse, when initiated, may not exceed the person's account value upon the division, </ins>&#10;123.20  <ins>plus the value of any deferred annuity augmentation.</ins>&#10;&#10;<a id="go.14.14.0"></a>123.21      Sec. 14. <ins><b>MINNEAPOLIS EMPLOYEES RETIREMENT FUND; SERVICE </b></ins>&#10;123.22  <ins><b>CREDIT PURCHASE FOR CERTAIN WORKERS' COMPENSATION INJURY </b></ins>&#10;123.23  <ins><b>PERIODS.</b></ins>&#10;123.24  <ins>(a) An eligible person described in paragraph (b) is entitled to purchase allowable </ins>&#10;123.25  <ins>service credit from the Minneapolis Employees Retirement Fund for up to two years for </ins>&#10;123.26  <ins>the period of the injury that qualified for a workers' compensation benefit but that was not </ins>&#10;123.27  <ins>previously credited by the Minneapolis Employees Retirement Fund.</ins>&#10;123.28  <ins>(b) An eligible person is a person who:</ins>&#10;123.29  <ins>(1) was born on January 4, 1951;</ins>&#10;123.30  <ins>(2) was first employed in the engineering department of the city of Minneapolis </ins>&#10;123.31  <ins>in 1974;</ins>&#10;123.32  <ins>(3) suffered an injury that, in 1978, qualified the person for workers' compensation </ins>&#10;123.33  <ins>benefits;</ins>&#10;123.34  <ins>(4) applied for disabled status in the Minneapolis Employees Retirement Fund in </ins>&#10;123.35  <ins>1986 and accrued allowable service credit for the period from 1986 to 1991; and </ins>&#10;124.1   <ins>(5) was advised by the Minneapolis Employees Retirement Fund to wait until </ins>&#10;124.2   <ins>retirement age to pursue a claim for allowable service credit for the period from 1978 </ins>&#10;124.3   <ins>to 1985.</ins>&#10;124.4   <ins>(c) The eligible person described in paragraph (b) must apply with the executive </ins>&#10;124.5   <ins>director of the Minneapolis Employees Retirement Fund to make a service credit purchase </ins>&#10;124.6   <ins>under this section.  The application must be in writing and must include all necessary </ins>&#10;124.7   <ins>documentation of the applicability of this section and any other relevant information that </ins>&#10;124.8   <ins>the executive director may require.</ins>&#10;124.9   <ins>(d) Allowable service credit under Minnesota Statutes, sections 422A.15, </ins>&#10;124.10  <ins>subdivisions 1 and 4, and 422A.19, must be granted by the Minneapolis Employees </ins>&#10;124.11  <ins>Retirement Fund to the eligible person upon receipt from the applicable eligible person of </ins>&#10;124.12  <ins>the portion of the prior service credit purchase payment amount payable under paragraph </ins>&#10;124.13  <ins>(e) in a lump sum.</ins>&#10;124.14  <ins>(e) Notwithstanding any provision of Minnesota Statutes, section 356.551, to the </ins>&#10;124.15  <ins>contrary, to obtain the service credit an eligible person must pay an amount equal to </ins>&#10;124.16  <ins>one-half of the prior service credit purchase payment amount determined under Minnesota </ins>&#10;124.17  <ins>Statutes, section 356.551.  Payment must be made before July 1, 2007, or prior to </ins>&#10;124.18  <ins>termination of Minneapolis Employees Retirement Fund covered employment, whichever </ins>&#10;124.19  <ins>is earlier.</ins>&#10;124.20  <ins>(f) If the eligible person makes the payment under paragraph (e), the city of </ins>&#10;124.21  <ins>Minneapolis must pay the remaining balance of the prior service credit purchase payment </ins>&#10;124.22  <ins>amount determined under Minnesota Statutes, section 356.551, within 30 days of the </ins>&#10;124.23  <ins>payment by the eligible person.  The executive director of the Minneapolis Employees </ins>&#10;124.24  <ins>Retirement Fund must notify the chief financial officer of the city of Minneapolis of </ins>&#10;124.25  <ins>its payment amount and its payment due date if the eligible person makes the required </ins>&#10;124.26  <ins>payment.  If the city of Minneapolis fails to pay its portion of the required prior service </ins>&#10;124.27  <ins>credit purchase payment amount, the executive director of the Minneapolis Employees </ins>&#10;124.28  <ins>Retirement Fund must notify the commissioner of finance of that fact within 30 days of the </ins>&#10;124.29  <ins>city payment due date and the commissioner of finance must order that the required city </ins>&#10;124.30  <ins>payment be deducted from any state aid otherwise payable to the city and be transmitted </ins>&#10;124.31  <ins>to the Minneapolis Employees Retirement Fund.</ins>&#10;&#10;<a id="go.14.15.0"></a>124.32      Sec. 15. <ins><b>CERTAIN NORTH ST. PAUL CITY ELECTED OFFICIALS; SERVICE </b></ins>&#10;124.33  <ins><b>CREDIT PURCHASES.</b></ins>&#10;124.34  <ins>(a) An eligible person described in paragraph (b) is entitled, upon making written </ins>&#10;124.35  <ins>application, to purchase service credit in the coordinated program of the general employees </ins>&#10;125.1   <ins>retirement plan of the Public Employees Retirement Association under paragraph (c) and </ins>&#10;125.2   <ins>to have future retirement coverage by the coordinated program of the general employees </ins>&#10;125.3   <ins>retirement plan of the Public Employees Retirement Association for future North St. </ins>&#10;125.4   <ins>Paul city elected official service.</ins>&#10;125.5   <ins>(b) An eligible person is an elected official who has been serving the city of North </ins>&#10;125.6   <ins>St. Paul since January 1, 2001, who was not informed of the option to be a member of the </ins>&#10;125.7   <ins>coordinated program of the general employees retirement plan of the Public Employees </ins>&#10;125.8   <ins>Retirement Association on January 1, 2001, when the minimum salary eligibility </ins>&#10;125.9   <ins>requirement for membership was first met, who was in elected office on June 30, 2002, </ins>&#10;125.10  <ins>when the coordinated program of the general employees retirement plan of the Public </ins>&#10;125.11  <ins>Employees Retirement Association was closed to membership by elected officials, and </ins>&#10;125.12  <ins>who was born on January 29, 1932, March 1, 1951, or December 7, 1951.</ins>&#10;125.13  <ins>(c) The purchase payment amount for the prior service credit purchase must be </ins>&#10;125.14  <ins>calculated under Minnesota Statutes, section 356.551. The eligible person must pay an </ins>&#10;125.15  <ins>amount equal to the employee contributions to the general employees retirement plan of </ins>&#10;125.16  <ins>the Public Employees Retirement Association that the person would have made from </ins>&#10;125.17  <ins>january 1, 2001, to the date of the purchase, plus annual compound interest at the rate of </ins>&#10;125.18  <ins>8.5 percent from the date on which payment should have been made if a membership </ins>&#10;125.19  <ins>election option had been exercised in 2001 to the date of actual payment. If the eligible </ins>&#10;125.20  <ins>person makes the required employee contribution equivalent payment, the executive </ins>&#10;125.21  <ins>director of the Public Employees Retirement Association shall notify the city of North </ins>&#10;125.22  <ins>St. Paul of the balance of the prior service credit purchase payment amount under </ins>&#10;125.23  <ins>Minnesota Statutes, section 356.551. The city of North St. Paul shall pay the certified </ins>&#10;125.24  <ins>payment amount to the Public Employees Retirement Association within 60 days of the </ins>&#10;125.25  <ins>certification, plus interest at the rate of 0.71 percent per month, compounded monthly, </ins>&#10;125.26  <ins>from the date of the employee contribution equivalent payment until the date on which the </ins>&#10;125.27  <ins>balance of the total purchase payment is paid.</ins>&#10;125.28  <ins>(d) This section expires on January 1, 2007.</ins>&#10;&#10;<a id="go.14.16.0"></a>125.29      Sec. 16. <ins><b>PERA-P&amp;F; PURCHASE OF SERVICE CREDIT.</b></ins>&#10;125.30      <ins>Subdivision 1.</ins> <ins><b>Eligibility.</b></ins> <ins>An eligible person may purchase allowable service credit </ins>&#10;125.31  <ins>from the public employees police and fire plan for a period of service as a police officer </ins>&#10;125.32  <ins>provided to the city of Eveleth immediately prior to January 1, 1978, not to exceed 14 </ins>&#10;125.33  <ins>months.  An eligible person is a person who:</ins>&#10;125.34  <ins>(1) is currently a member of the public employees police and fire plan;</ins>&#10;126.1   <ins>(2) was first employed by the city of Eveleth police department on November 29, </ins>&#10;126.2   <ins>1976; and</ins>&#10;126.3   <ins>(3) was born on June 5, 1956.</ins>&#10;126.4       <ins>Subd. 2.</ins> <ins><b>Purchase requirements.</b></ins> <ins>An eligible person must apply to the executive </ins>&#10;126.5   <ins>director of the Public Employees Retirement Association to make the service credit </ins>&#10;126.6   <ins>purchase authorized in this section.  This application for a purchase of service credit under </ins>&#10;126.7   <ins>Minnesota Statutes, section 356.551, must be in writing and must contain documentation </ins>&#10;126.8   <ins>required by the executive director.</ins>&#10;126.9       <ins>Subd. 3.</ins> <ins><b>Additional requirements; restrictions.</b></ins> <ins>(a) In addition to the one-year </ins>&#10;126.10  <ins>payment time limit in Minnesota Statutes, section 356.551, the authority provided by this </ins>&#10;126.11  <ins>section is voided if the payment amount is not paid to the executive director of the Public </ins>&#10;126.12  <ins>Employees Retirement Association prior to termination of service by the eligible person.</ins>&#10;126.13  <ins>(b) This section is voided if the eligible person received a refund of contributions </ins>&#10;126.14  <ins>relating to the eligible period stated in subdivision 1, due to Laws 1977, chapter 61, section </ins>&#10;126.15  <ins>4, or any other refund provision in applicable law or plan documents.</ins>&#10;126.16  <ins>(c) This section is voided relating to any portion of the eligible period specified in </ins>&#10;126.17  <ins>subdivision 1 which was properly excluded from coverage by statute, law, or ordinance </ins>&#10;126.18  <ins>then in effect, or if the lack of coverage was due to an election made by the eligible </ins>&#10;126.19  <ins>individual, or by a failure by that individual to obtain the applicable service credit under </ins>&#10;126.20  <ins>service credit purchase authority in effect when the service was rendered or within two </ins>&#10;126.21  <ins>years following the merger of the Eveleth Police Relief Association members into the </ins>&#10;126.22  <ins>Public Employees Retirement Association police and fire plan as authorized by Laws </ins>&#10;126.23  <ins>1977, chapter 61.</ins>&#10;126.24      <ins>Subd. 4.</ins> <ins><b>Payment.</b></ins> <ins>(a) If an eligible person meets the requirements to purchase </ins>&#10;126.25  <ins>service credit under this section, the public employees police and fire fund must be paid </ins>&#10;126.26  <ins>the amount determined under Minnesota Statutes, section 356.551.  Of this amount:</ins>&#10;126.27  <ins>(1) the eligible person must pay an amount equal to the employee contribution rate </ins>&#10;126.28  <ins>during the period of service to be purchased, applied to the actual salary in effect during </ins>&#10;126.29  <ins>that period, plus interest at the rate of 8.5 percent per year compounded annually from </ins>&#10;126.30  <ins>the date on which the contributions should have been made to the date on which payment </ins>&#10;126.31  <ins>is made under this section; and </ins>&#10;126.32  <ins>(2) the city of Eveleth must pay the remainder of the amount determined under </ins>&#10;126.33  <ins>Minnesota Statutes, section 356.551.</ins>&#10;126.34  <ins>(b) If the city of Eveleth fails to pay the amount required under paragraph (a), clause </ins>&#10;126.35  <ins>(2), within 30 days of notification from the executive director of the amount required, the </ins>&#10;126.36  <ins>executive director shall inform the commissioner of the Department of Finance of the </ins>&#10;127.1   <ins>amount of the deficiency, and the amount must be deducted from any subsequent state </ins>&#10;127.2   <ins>aid to the city.</ins>&#10;&#10;<a id="go.14.17.0"></a>127.3       Sec. 17. <ins><b>TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF </b></ins>&#10;127.4   <ins><b>SERVICE CREDIT FOR AN UNCREDITED EXTENDED LEAVE.</b></ins>&#10;127.5   <ins>(a) An eligible person described in paragraph (b) is authorized to purchase allowable </ins>&#10;127.6   <ins>and formula service credit in the Teachers Retirement Association for any period of an </ins>&#10;127.7   <ins>eligible person's extended leave that was not properly reported to the Teachers Retirement </ins>&#10;127.8   <ins>Association by Independent School District No. 831, Forest Lake. Allowable formula </ins>&#10;127.9   <ins>service credit and salary credit is granted under Minnesota Statutes, section 354.05, </ins>&#10;127.10  <ins>subdivision 13, to the eligible person upon making the payment required under paragraph </ins>&#10;127.11  <ins>(c).</ins>&#10;127.12  <ins>(b) An eligible person is a person who:</ins>&#10;127.13  <ins>(1) was born on November 23, 1949;</ins>&#10;127.14  <ins>(2) was initially employed as a teacher in September 1974;</ins>&#10;127.15  <ins>(3) is employed by Independent School District No. 831, Forest Lake; and</ins>&#10;127.16  <ins>(4) took an extended leave for the 2001-2002 school year that was not reported </ins>&#10;127.17  <ins>to the Teachers Retirement Association in a timely fashion as required by Minnesota </ins>&#10;127.18  <ins>Statutes, section 354.094.</ins>&#10;127.19  <ins>(c) The eligible person is authorized to make an employee equivalent contribution </ins>&#10;127.20  <ins>payment equal to ten percent of the person's school year salary received during the year </ins>&#10;127.21  <ins>immediately preceding the extended leave, plus compound interest at the rate of 8.5 </ins>&#10;127.22  <ins>percent per annum from July 1, 2001, to the date on which the lump sum payment is made.</ins>&#10;127.23  <ins>(d) If the eligible person makes the payment under paragraph (c), the executive </ins>&#10;127.24  <ins>director of the Teachers Retirement Association shall, within 30 days, notify Independent </ins>&#10;127.25  <ins>School District No. 831, Forest Lake, of its obligation under this section. The school </ins>&#10;127.26  <ins>district's obligation is the balance of the prior service credit purchase payment amount </ins>&#10;127.27  <ins>determined under Minnesota Statutes, section 356.551, which exceeds the payment under </ins>&#10;127.28  <ins>paragraph (c). If the school district fails to pay its obligation within 60 days following </ins>&#10;127.29  <ins>notification, the executive director shall certify that failure and the amount due to the </ins>&#10;127.30  <ins>commissioner of finance, who shall deduct the amount due from any subsequent state aid </ins>&#10;127.31  <ins>payable to Independent School District No. 831, Forest Lake, plus interest at the rate of </ins>&#10;127.32  <ins>0.71 percent per month from the date of the payment under paragraph (c) to the date of </ins>&#10;127.33  <ins>the actual payment.</ins>&#10;127.34  <ins>(e) This provision expires on July 1, 2007, or upon termination of covered service, </ins>&#10;127.35  <ins>whichever is earlier.</ins>&#10;&#10;<a id="go.14.18.0"></a>128.1       Sec. 18. <ins><b>EFFECTIVE DATE.</b></ins>&#10;128.2   <ins>(a) Sections 1 to 11 and 13 are effective the day following final enactment.</ins>&#10;128.3   <ins>(b) Section 12 is effective the day following the date on which the city council of </ins>&#10;128.4   <ins>the city of St. Paul and its chief clerical officer timely complete their compliance with </ins>&#10;128.5   <ins>Minnesota Statutes, section 645.021, subdivisions 2 and 3.</ins>&#10;128.6   <ins>(c) Section 14 is effective the day following the date on which the city council of the </ins>&#10;128.7   <ins>city of Minneapolis and its chief clerical officer timely complete their compliance with </ins>&#10;128.8   <ins>Minnesota Statutes, section 645.021, subdivisions 2 and 3.</ins>&#10;128.9   <ins>(d) Section 12 expires July 1, 2007.</ins>&#10;128.10  <ins>(e) Sections 16 and 17 are effective the day following final enactment.</ins>&#10;