1.1                          A bill for an act 
  1.2             relating to retirement; various retirement plans; 
  1.3             clarifying the laws applicable to the remaining local 
  1.4             police and paid firefighter pension plans; repealing 
  1.5             obsolete local police and paid firefighter pension 
  1.6             plan laws; providing public employee pension coverage 
  1.7             for certain foreign citizens; clarifying membership 
  1.8             eligibility and allowable service credit for the 
  1.9             public employees retirement association; requiring 
  1.10            membership for charter school teachers in the teachers 
  1.11            retirement association; providing for the payment of 
  1.12            unpaid closed charter school retirement contributions 
  1.13            from charter school lease aid; eliminating 
  1.14            contribution rate increases in the local government 
  1.15            correctional service retirement plan; establishing 
  1.16            provisions relating to employees of the Kanabec 
  1.17            hospital if the hospital is privatized; extending the 
  1.18            expiration date for certain prior service credit 
  1.19            purchase authorizations; recodifying social security 
  1.20            coverage provisions; implementing recommended changes 
  1.21            in salary actuarial assumptions; clarifying the 
  1.22            restrictions on supplemental and local pension plans 
  1.23            for plans funded from accumulated sick and vacation 
  1.24            leave; reorganizing the revising various general 
  1.25            retirement provisions; instructing the revisor of 
  1.26            statutes; authorizing the commissioner of 
  1.27            administration to lease pension fund facilities to 
  1.28            deferred compensation service providers; authorizing 
  1.29            certain volunteer firefighters to receive service 
  1.30            pensions or disability benefits without terminating 
  1.31            active service; authorizing a study of the creation of 
  1.32            a voluntary statewide volunteer firefighter retirement 
  1.33            plan; amending Minnesota Statutes 2000, sections 
  1.34            69.77; 69.80; 353.01, by adding a subdivision; 
  1.35            353A.08, subdivision 6a; 353E.02, subdivision 1, by 
  1.36            adding a subdivision; 353E.03; 353F.02, subdivision 4; 
  1.37            354A.011, subdivision 27; 354A.12, subdivision 3d; 
  1.38            355.01, subdivisions 1, 3, 6, 8, by adding 
  1.39            subdivisions; 355.02; 355.03; 355.05; 355.07; 355.08; 
  1.40            356.001; 356.20, subdivisions 1, 2, 3, 4, 4a; 356.215, 
  1.41            as amended; 356.216; 356.217; 356.219; 356.22; 356.23; 
  1.42            356.24, subdivisions 1b, 1c, 2; 356.245; 356.25; 
  1.43            356.30; 356.302; 356.303; 356.32; 356.40; 356.41; 
  1.44            356.50; 356.55, as amended; 356.551; 356.611; 356.65, 
  1.45            subdivision 2; 356.87; 356.89, subdivision 3; 423A.17; 
  1.46            423A.171; 424A.02, subdivision 1; 424A.09; Minnesota 
  2.1             Statutes 2001 Supplement, sections 353.01, 
  2.2             subdivisions 2a, 2b, 11b, 16; 353.27, subdivisions 4, 
  2.3             11; 354.05, subdivision 2; 356.24, subdivision 1; 
  2.4             356.555; 356.62; 356.65, subdivision 1; Laws 1999, 
  2.5             chapter 222, article 16, section 16; Laws 2000, 
  2.6             chapter 461, article 10, section 3, as amended; Laws 
  2.7             2000, chapter 461, article 12, section 20; Laws 2001, 
  2.8             First Special Session chapter 10, article 6, section 
  2.9             21; proposing coding for new law in Minnesota 
  2.10            Statutes, chapters 355; 356; proposing coding for new 
  2.11            law as Minnesota Statutes, chapter 356B; repealing 
  2.12            Minnesota Statutes 2000, sections 69.25; 69.26; 69.27; 
  2.13            69.28; 69.29; 69.30; 69.32; 69.361; 69.37; 69.38; 
  2.14            69.39; 69.40; 69.41; 69.42; 69.43; 69.44; 69.45; 
  2.15            69.46; 69.47; 69.48; 69.49; 69.50; 69.51; 69.52; 
  2.16            69.53; 69.62; 69.78; 297I.10, subdivision 2; 355.01, 
  2.17            subdivisions 2, 4, 5, 9, 10; 355.11; 355.12; 355.13; 
  2.18            355.14; 355.15; 355.16; 355.17; 355.201; 355.202; 
  2.19            355.203; 355.204; 355.205; 355.206; 355.207; 355.208; 
  2.20            355.209; 355.21; 355.22; 355.23; 355.24; 355.25; 
  2.21            355.26; 355.27; 355.28; 355.281; 355.282; 355.283; 
  2.22            355.284; 355.285; 355.286; 355.287; 355.288; 355.29; 
  2.23            355.291; 355.292; 355.293; 355.294; 355.295; 355.296; 
  2.24            355.297; 355.298; 355.299; 355.30; 355.311; 355.391; 
  2.25            355.392; 355.393; 355.41; 355.42; 355.43; 355.44; 
  2.26            355.45; 355.46; 355.48; 355.49; 355.50; 355.51; 
  2.27            355.52; 355.54; 355.55; 355.56; 355.57; 355.58; 
  2.28            355.59; 355.60; 355.61; 355.621; 355.622; 355.623; 
  2.29            355.624; 355.625; 355.626; 355.627; 355.628; 355.71; 
  2.30            355.72; 355.73; 355.74; 355.75; 355.76; 355.77; 
  2.31            355.78; 355.79; 355.80; 355.81; 355.90; 356.19; 
  2.32            356.305; 356.306; 356.31; 356.325; 356.35; 356.36; 
  2.33            356.37; 356.371, subdivisions 2, 3; 356.372; 356.38; 
  2.34            356.39; 356.45; 356.451; 356.452; 356.453; 356.454; 
  2.35            356.455; 356.615; 356.71; 356.80; 356.81; 356.86; 
  2.36            356.865; 356.88; 356.89; 423.37; 423.371; 423.372; 
  2.37            423.373; 423.374; 423.375; 423.377; 423.378; 423.379; 
  2.38            423.38; 423.381; 423.382; 423.383; 423.384; 423.385; 
  2.39            423.386; 423.387; 423.388; 423.389; 423.39; 423.391; 
  2.40            423.392; 423.801; 423.802; 423.803; 423.804; 423.805; 
  2.41            423.806; 423.808; 423.809; 423.810; 423.812; 423.813; 
  2.42            423.814; 423.90; 423A.03; 424.01; 424.02; 424.03; 
  2.43            424.04; 424.05; 424.06; 424.08; 424.14; 424.15; 
  2.44            424.16; 424.165; 424.17; 424.18; 424.19; 424.20; 
  2.45            424.21; 424.22; 424.23; 424.24; 424.25; 424.27; 
  2.46            424.28; 424.29; Minnesota Statutes 2001 Supplement, 
  2.47            sections 353.01, subdivision 39; 356.371, subdivision 
  2.48            1; 356.866; Special Laws 1889, chapter 425; Special 
  2.49            Laws 1891, chapter 11; Laws 1897, chapters 389; 390; 
  2.50            Laws 1915, chapter 68; Laws 1917, chapter 196; Laws 
  2.51            1919, chapters 68; 515; Laws 1921, chapter 118; Laws 
  2.52            1923, chapter 54; Laws 1925, chapter 197; Laws 1931, 
  2.53            chapter 48; Laws 1933, chapter 122; Laws 1935, 
  2.54            chapters 92; 192; 208; 259; Laws 1937, chapters 132; 
  2.55            197; 253; Laws 1939, chapters 124; 304; Laws 1941, 
  2.56            chapters 74; 182; 196; Laws 1943, chapters 170; 267; 
  2.57            397; 413; 432; Laws 1945, chapters 74; 182; 277; 300; 
  2.58            Laws 1947, chapters 40; 43; 101; 274; 329; Laws 1949, 
  2.59            chapters 87; 144; 153; 154; 164; 191; 235; 281; 378; 
  2.60            Laws 1951, chapters 43; 45; 48; 144; 233; 243; 420; 
  2.61            435; 499; Laws 1953, chapters 37; 44; 91; 235; 253; 
  2.62            348; 391; 401; 406; Laws 1955, chapters 42; 49; 75; 
  2.63            151; 187; 188; 293; 294; 348; 375; 827; Laws 1957, 
  2.64            chapters 10; 16; 36; 127; 144; 164; 256; 257; 455; 
  2.65            630; 793; Laws 1959, chapters 108; 131; 191; 207; 208; 
  2.66            211; 437; Laws 1961, chapters 186; 290; 295; 300; 343; 
  2.67            376; 399; 434; 435, section 2; 443; 620; 631; 747; 
  2.68            Extra Session Laws 1961, chapters 28; 80; Laws 1963, 
  2.69            chapters 36; 208; 221; 271; 443; 453; 454; 464; 619; 
  2.70            636; 643; 670; 715; Laws 1965, chapters 174; 179; 190; 
  2.71            418; 457; 458; 465; 498; 536; 540; 594; 604; 605; 636; 
  3.1             790; Laws 1967, chapters 644; 678; 702; 708; 730; 732; 
  3.2             736; 751; 775; 783; 798; 807; 816; 848; Laws 1969, 
  3.3             chapters 138; 442; 443; 552; 576; 594; 614; 641; 668; 
  3.4             669; 670; 671; 672; 686; 694; 716; 849; 1087; Laws 
  3.5             1971, chapters 51; 178; 407; 549; 614; 807; 809; 810; 
  3.6             Extra Session Laws 1971, chapter 41; Laws 1973, 
  3.7             chapters 286; 287; 346; 359; 432; 433; 587; Laws 1974, 
  3.8             chapters 251; 382; Laws 1975, chapters 120; 121; 127; 
  3.9             254, sections 1, 2, 3, 4, 5, 6; 368, section 54; 389; 
  3.10            408; 423; 424; 425; Laws 1976, chapters 36; 78; 85; 
  3.11            99; 247; Laws 1977, chapters 83; 164, sections 1, 3; 
  3.12            169; 270; 275; 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 
  3.13            9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 
  3.14            23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 
  3.15            36, 37, 38, 39, 41, 42, 43, 44, 45, 46, 47, 48, 49, 
  3.16            50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60; 429, 
  3.17            section 62; Laws 1978, chapters 563, sections 12, 13, 
  3.18            14, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 
  3.19            28, 29, 30; 579; 648; 690, sections 9, 10; 793, 
  3.20            section 96; Laws 1979, chapters 131, section 3; 216, 
  3.21            sections 27, 28, 29, 30, 31, 34, 35, 36, 37, 38, 39, 
  3.22            40, 41, 42, 43, 44; Laws 1980, chapters 341, sections 
  3.23            2, 3, 4, 5, 6, 9, 10; 600, sections 11, 12, 13, 14, 
  3.24            15, 16, 17, 18, 22; 607, article XV, section 23; Laws 
  3.25            1981, chapters 68, sections 31, 32, 33, 34, 35, 36, 
  3.26            37, 41, 42, 43; 224, sections 236, 237, 239, 240, 243, 
  3.27            244, 247, 248, 252, 253, 258, 259, 260, 261, 263, 264, 
  3.28            265, 266, 267, 268, 270, 272, 273; 297, sections 1, 2; 
  3.29            Laws 1982, chapters 402; 443; 574, sections 3, 4, 5, 
  3.30            6, 8; 578, articles II, section 1, subdivision 8; III, 
  3.31            section 18; 610, sections 8, 9, 10, 11, 12, 13, 14, 
  3.32            15, 16, 17, 18, 19, 20; Laws 1983, chapters 47; 74; 
  3.33            84, section 1; 291, sections 8, 9, 10, 11, 12, 13, 14, 
  3.34            15, 16, 17; Laws 1984, chapter 574, sections 18, 19, 
  3.35            20, 22, 23, 24, 25, 26, 33; Laws 1985, chapters 259, 
  3.36            sections 5, 6; 261, sections 14, 15, 16, 18, 20, 32, 
  3.37            33, 34, 35, 36; Laws 1985, First Special Session 
  3.38            chapter 16, article 2, section 6; Laws 1986, chapters 
  3.39            359, sections 22, 23, 24, 25; 458, sections 23, 34; 
  3.40            Laws 1987, chapter 372, article 2, sections 7, 8, 9, 
  3.41            10, 12; Laws 1988, chapter 709, articles 8, section 5; 
  3.42            9, section 5; Laws 1989, chapter 319, article 11, 
  3.43            sections 2, 3, 4, 12; Laws 1990, chapter 589, article 
  3.44            1, section 7; Laws 1991, chapters 96; 269, article 2, 
  3.45            sections 12, 13; Laws 1992, chapters 392, section 1; 
  3.46            393, section 1; 422; 431, section 1; 448; 455; 563, 
  3.47            sections 3, 4, 5; 586, section 1; Laws 1993, chapters 
  3.48            72; 110; 112, section 2; 126; 202, article 1; Laws 
  3.49            1994, chapters 409; 410; 474; 490; 541, section 3; 
  3.50            Laws 1995, chapter 262, article 10, section 4; Laws 
  3.51            1996, chapter 448, article 2, section 1; Laws 1997, 
  3.52            chapters 233, article 1, section 58, 241, article 2, 
  3.53            sections 2, 3, 4, 5, 6, 9, 10, 11, 13, 14, 15, 20; 
  3.54            Laws 1999, chapter 222, article 3, section 6; Laws 
  3.55            2000, chapter 461, article 10, section 2. 
  3.56  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  3.57                             ARTICLE 1 
  3.58                        LOCAL POLICE AND PAID 
  3.59                       FIRE RELIEF ASSOCIATION 
  3.60                     GOVERNING LAW CLARIFICATION 
  3.61     Section 1.  Minnesota Statutes 2000, section 69.77, is 
  3.62  amended to read: 
  3.63     69.77 [POLICE AND FIREFIGHTERS' RELIEF ASSOCIATION 
  4.1   GUIDELINES ACT.] 
  4.2      Subdivision 1.  [AUTHORIZED CONDITIONED EMPLOYER SUPPORT 
  4.3   FOR A RELIEF ASSOCIATION.] (a) Notwithstanding any law to the 
  4.4   contrary, only if the municipality and the relief association 
  4.5   comply with the provisions of this section, a municipality may 
  4.6   contribute public funds, including any applicable police or fire 
  4.7   state aid, or levy property taxes for the support of a police or 
  4.8   firefighters' relief association, enumerated in subdivision 1a, 
  4.9   however organized, which provides retirement coverage or pays a 
  4.10  service pension to a retired police officer or firefighter or a 
  4.11  retirement benefit to a surviving dependent of either an active 
  4.12  or retired police officer or firefighter, for the operation and 
  4.13  maintenance of the relief association only if the municipality 
  4.14  and the relief association comply with the provisions of this 
  4.15  section.  
  4.16     (b) The commissioner shall not include in the apportionment 
  4.17  of police or fire state aid to the county auditor pursuant to 
  4.18  under section 69.021, subdivision 6, any municipality in which 
  4.19  there exists a local police or salaried firefighters' relief 
  4.20  association as enumerated in subdivision 1a which does not 
  4.21  comply with the provisions of this section or the provisions of 
  4.22  any applicable special law relating to the funding or financing 
  4.23  of the association and that municipality shall may not qualify 
  4.24  initially to receive, or be entitled subsequently to retain, 
  4.25  state aid pursuant to under sections 69.011 to 69.051 until the 
  4.26  reason for the disqualification is remedied, whereupon the 
  4.27  municipality, if otherwise qualified, shall be is entitled to 
  4.28  again receive state aid for the year occurring immediately 
  4.29  subsequent to the year in which the disqualification is remedied.
  4.30     (c) The state auditor and the commissioner shall determine 
  4.31  if a municipality with a local police or salaried firefighters' 
  4.32  relief association fails to comply with the provisions of this 
  4.33  section or the funding or financing provisions of any applicable 
  4.34  special law. 
  4.35     Subd. 1a.  [COVERED RETIREMENT PLANS.] The provisions of 
  4.36  this section shall apply to the following local retirement funds 
  5.1   plans: 
  5.2      (1) any police pension fund or relief association which is 
  5.3   established pursuant to chapter 423 the Bloomington firefighters 
  5.4   relief association; 
  5.5      (2) any salaried firefighters' pension fund or relief 
  5.6   association which is established pursuant to chapter 424 the 
  5.7   Fairmont police relief association; 
  5.8      (3) any pension fund or relief association which is 
  5.9   established pursuant to this chapter which has five or more 
  5.10  members who receive compensation for services rendered in the 
  5.11  employment covered by the pension fund or relief association and 
  5.12  which provides for retirement coverage or a service pension 
  5.13  based on the compensation paid to members for that service the 
  5.14  Minneapolis firefighters relief association; 
  5.15     (4) any pension fund or relief association which is 
  5.16  established and operates in whole or in part pursuant to special 
  5.17  legislation and which provides for retirement coverage or a 
  5.18  service pension based on the compensation paid to members for 
  5.19  service as police officers or firefighters or which provides for 
  5.20  retirement coverage or a service pension to volunteer 
  5.21  firefighters based on the compensation paid to or the service 
  5.22  pension provided by a pension fund or relief association located 
  5.23  in the same municipality for police officers employed by the 
  5.24  municipality but not covered by clause (1), (2) or (3) the 
  5.25  Minneapolis police relief association; and 
  5.26     (5) any governmental subdivision retirement fund 
  5.27  established pursuant to any law providing for retirement 
  5.28  coverage to police officers or salaried firefighters or a 
  5.29  retirement benefit to their dependents and not otherwise 
  5.30  described in this subdivision the Virginia fire department 
  5.31  relief association. 
  5.32     Subd. 2.  [INAPPLICABLE PENALTY.] The penalty provided for 
  5.33  in subdivision 1 shall does not apply to a relief association 
  5.34  enumerated in subdivision 1a if the requirements of subdivisions 
  5.35  2a 3 to 2h 10 are met. 
  5.36     Subd. 2a 3.  [MINIMUM MEMBER CONTRIBUTION.] Each active 
  6.1   member of the relief association shall must pay into the special 
  6.2   fund of the association during a year of covered service, a 
  6.3   contribution for retirement coverage, including survivorship 
  6.4   benefits, of not less than eight percent of the maximum rate of 
  6.5   salary upon which retirement coverage is credited and service 
  6.6   pension and retirement benefit amounts are determined.  The 
  6.7   member contributions shall must be made by payroll deduction 
  6.8   from the salary of the member by the municipality, and 
  6.9   shall must be transmitted by the municipality to the relief 
  6.10  association as soon as practical.  The relief association shall 
  6.11  deposit the member contribution to the credit of the special 
  6.12  fund of the relief association.  The member contribution 
  6.13  requirement specified in this subdivision shall does not apply 
  6.14  to any members who are volunteer firefighters. 
  6.15     Subd. 2b 4.  [RELIEF ASSOCIATION FINANCIAL REQUIREMENTS; 
  6.16  MINIMUM MUNICIPAL OBLIGATION.] (a) The officers of the relief 
  6.17  association shall determine the financial requirements of the 
  6.18  relief association and minimum obligation of the municipality 
  6.19  for the following calendar year in accordance with the 
  6.20  requirements of this subdivision.  The financial requirements of 
  6.21  the relief association and the minimum obligation of the 
  6.22  municipality shall must be determined on or before the 
  6.23  submission date established by the municipality pursuant to 
  6.24  under subdivision 2c 5. 
  6.25     (b) The financial requirements of the relief association 
  6.26  for the following calendar year shall must be based on the most 
  6.27  recent actuarial valuation or survey of the special fund of the 
  6.28  association if more than one fund is maintained by the 
  6.29  association, or of the association, if only one fund is 
  6.30  maintained, prepared in accordance with sections 356.215, 
  6.31  subdivisions 4 to 4k and 356.216, as required pursuant to under 
  6.32  subdivision 2h 10.  If an actuarial estimate is prepared by the 
  6.33  actuary of the relief association as part of obtaining a 
  6.34  modification of the benefit plan of the relief association and 
  6.35  the modification is implemented, the actuarial estimate shall 
  6.36  must be used in calculating the subsequent financial 
  7.1   requirements of the relief association. 
  7.2      (c) If the relief association has an unfunded actuarial 
  7.3   accrued liability as reported in the most recent actuarial 
  7.4   valuation or survey, the total of the amounts 
  7.5   calculated pursuant to under clauses (a), (b), and (c) 
  7.6   shall (1), (2), and (3) constitute the financial requirements of 
  7.7   the relief association for the following year.  If the relief 
  7.8   association does not have an unfunded actuarial accrued 
  7.9   liability as reported in the most recent actuarial valuation or 
  7.10  survey, the amount calculated pursuant to under clauses (a) and 
  7.11  (b) shall (1) and (2) constitute the financial requirements of 
  7.12  the relief association for the following year.  The financial 
  7.13  requirement elements are: 
  7.14     (a) (1) The normal level cost requirement for the following 
  7.15  year, expressed as a dollar amount, which shall must be 
  7.16  determined by applying the normal level cost of the relief 
  7.17  association as reported in the actuarial valuation or survey and 
  7.18  expressed as a percentage of covered payroll to the estimated 
  7.19  covered payroll of the active membership of the relief 
  7.20  association, including any projected increase change in the 
  7.21  active membership, for the following year.; 
  7.22     (b) (2) For the Bloomington fire department relief 
  7.23  association, the Fairmont police relief association, and the 
  7.24  Virginia fire department relief association, to the dollar 
  7.25  amount of normal cost thus determined shall under clause (1) 
  7.26  must be added an amount equal to the dollar amount of the 
  7.27  administrative expenses of the special fund of the association 
  7.28  if more than one fund is maintained by the association, or of 
  7.29  the association if only one fund is maintained, for the most 
  7.30  recent year, multiplied by the factor of 1.035.  For a relief 
  7.31  association in a municipality, The administrative expenses are 
  7.32  those authorized under section 69.80.  No amount of 
  7.33  administrative expenses under this clause shall are to be 
  7.34  included in the financial requirements of a the Minneapolis 
  7.35  firefighters relief association in a city of the first class 
  7.36  with a population of more than 300,000. or the Minneapolis 
  8.1   police relief association; and 
  8.2      (c) (3) To the dollar amount of normal cost and expenses 
  8.3   determined under clauses (a) and (b) shall (1) and (2) must be 
  8.4   added an amount equal to the level annual dollar amount which is 
  8.5   sufficient to amortize the unfunded actuarial accrued liability 
  8.6   by December 31, 2010, as determined from the actuarial valuation 
  8.7   or survey of the fund, using an interest assumption set at the 
  8.8   applicable rate specified in section 356.215, subdivision 4d.  
  8.9   The amortization date specified in this clause shall apply 
  8.10  applies to all local police or salaried firefighters' relief 
  8.11  associations and shall supersede that date supersedes any 
  8.12  amortization date specified in any applicable special law. 
  8.13     (d) The minimum obligation of the municipality shall be is 
  8.14  an amount equal to the financial requirements of the relief 
  8.15  association reduced by the estimated amount of member 
  8.16  contributions from covered salary anticipated for the following 
  8.17  calendar year and the estimated amounts anticipated for the 
  8.18  following calendar year from the applicable state aid program 
  8.19  established pursuant to under sections 69.011 to 69.051 
  8.20  receivable by the relief association after any allocation 
  8.21  made pursuant to under section 69.031, subdivision 5, clause 
  8.22  (2), subclause (c), or 423A.01, subdivision 2, clause (6), from 
  8.23  the local police and salaried firefighters' relief association 
  8.24  amortization aid program established pursuant to under section 
  8.25  423A.02 and, subdivision 1, from the supplementary amortization 
  8.26  state-aid program established under Laws 1984, chapter 564, 
  8.27  section 48, and Laws 1985, chapter 261, section 17 section 
  8.28  423A.02, subdivision 1a, and from the additional amortization 
  8.29  state aid under section 423A.02, subdivision 1b. 
  8.30     Subd. 2c 5.  [DETERMINATION SUBMISSION.] The officers of 
  8.31  the relief association shall submit the determination of the 
  8.32  financial requirements of the relief association and of the 
  8.33  minimum obligation of the municipality to the governing body on 
  8.34  or before the date established by the municipality, which shall 
  8.35  may not be earlier than August 1 and shall may not be later than 
  8.36  September 1 of each year.  The governing body of the 
  9.1   municipality shall must ascertain whether or not the 
  9.2   determinations were prepared in accordance with law. 
  9.3      Subd. 2d 6.  [MUNICIPAL PAYMENT.] (a) The municipality 
  9.4   shall provide for and shall pay, each year, at least the amount 
  9.5   of the minimum obligation of the municipality to the relief 
  9.6   association.  
  9.7      (b) If there is any deficiency in the municipal payment to 
  9.8   meet the minimum obligation of the municipality as of the end of 
  9.9   any calendar year, the amount of the deficiency shall must be 
  9.10  added to the minimum obligation of the municipality for the 
  9.11  following year calculated pursuant to under subdivision 2b 4 and 
  9.12  shall must include interest at the compound rate of six percent 
  9.13  per annum compounded from the date that the municipality was 
  9.14  required to make payment pursuant to under this subdivision 
  9.15  until the date that the municipality actually makes the required 
  9.16  payment. 
  9.17     Subd. 2e 7.  [BUDGET INCLUSION.] (a) The municipality shall 
  9.18  provide in the annual municipal budget for at least the minimum 
  9.19  obligation of the municipality calculated pursuant to under 
  9.20  subdivision 2b 4.  
  9.21     (b) The municipality may levy taxes for the payment of the 
  9.22  minimum obligation of the municipality without any limitation as 
  9.23  to rate or amount and irrespective of limitations imposed by 
  9.24  other provisions of law upon the rate or amount of taxation when 
  9.25  the balance of the special fund or any fund of the relief 
  9.26  association has attained a specified minimum asset level.  In 
  9.27  addition, any taxes levied pursuant to under this section shall 
  9.28  may not cause the amount or rate of other taxes levied in that 
  9.29  year or to be levied in a subsequent year by the municipality 
  9.30  which are subject to a limitation as to rate or amount to be 
  9.31  reduced.  
  9.32     (c) If the municipality does not include the full amount of 
  9.33  the minimum obligation of the municipality in the levy that the 
  9.34  municipality certified to the county auditor in any year, the 
  9.35  officers of the relief association shall certify the amount of 
  9.36  any deficiency to the county auditor.  Upon verifying the 
 10.1   existence of any deficiency in the levy certified by the 
 10.2   municipality, the county auditor shall spread a levy over the 
 10.3   taxable property of the municipality in the amount of the 
 10.4   deficiency certified to by the officers of the relief 
 10.5   association. 
 10.6      Subd. 2f 8.  [ACCELERATED AMORTIZATION.] Any sums of money 
 10.7   paid by the municipality to the relief association in excess of 
 10.8   the minimum obligation of the municipality in any year shall 
 10.9   must be used to amortize any unfunded actuarial accrued 
 10.10  liabilities of the relief association. 
 10.11     Subd. 2g 9.  [LOCAL POLICE AND PAID FIRE RELIEF ASSOCIATION 
 10.12  INVESTMENT AUTHORITY.] (a) The funds of the association must be 
 10.13  invested in securities that are authorized investments under 
 10.14  section 356A.06, subdivision 6 or 7.  Notwithstanding the 
 10.15  foregoing, Up to 75 percent of the market value of the assets of 
 10.16  the fund may be invested in open-end investment companies 
 10.17  registered under the federal Investment Company Act of 1940, if 
 10.18  the portfolio investments of the investment companies comply 
 10.19  with the type of securities authorized for investment under 
 10.20  section 356A.06, subdivision 7.  Securities held by the 
 10.21  association before June 2, 1989, that do not meet the 
 10.22  requirements of this subdivision may be retained after that date 
 10.23  if they were proper investments for the association on that date.
 10.24     (b) The governing board of the association may select and 
 10.25  appoint investment agencies to act for and in its behalf or may 
 10.26  certify special fund assets for investment by the state board of 
 10.27  investment under section 11A.17.  The governing board of the 
 10.28  association may certify general fund assets of the relief 
 10.29  association for investment by the state board of investment in 
 10.30  fixed income pools or in a separately managed account at the 
 10.31  discretion of the state board of investment as provided in 
 10.32  section 11A.14.  The governing board of the association may 
 10.33  select and appoint a qualified private firm to measure 
 10.34  management performance and return on investment, and the firm 
 10.35  shall use the formula or formulas developed by the state board 
 10.36  under section 11A.04, clause (11). 
 11.1      Subd. 2h 10.  [ACTUARIAL VALUATION REQUIRED.] The 
 11.2   association shall obtain an actuarial valuation showing the 
 11.3   condition of the special fund of the relief association pursuant 
 11.4   to under sections 356.215 and 356.216 and any applicable 
 11.5   standards for actuarial work established by the legislative 
 11.6   commission on pensions and retirement as of December 31 of every 
 11.7   year.  A copy of the actuarial valuation shall must be filed 
 11.8   with the director of the legislative reference library, the 
 11.9   governing body of the municipality in which the association is 
 11.10  organized, the executive director of the legislative commission 
 11.11  on pensions and retirement, and the state auditor, not later 
 11.12  than July 1 of the following year. 
 11.13     Subd. 2i 11.  [MUNICIPAL APPROVAL OF BENEFIT CHANGES 
 11.14  REQUIRED.] Any amendment to the bylaws or articles of 
 11.15  incorporation of a relief association which increases or 
 11.16  otherwise affects the retirement coverage provided by or the 
 11.17  service pensions or retirement benefits payable from any police 
 11.18  or firefighters' relief association enumerated in subdivision 1a 
 11.19  shall is not be effective until it is ratified by the 
 11.20  municipality in which the relief association is located.  The 
 11.21  officers of the relief association shall not seek municipal 
 11.22  ratification prior to before obtaining either an updated 
 11.23  actuarial valuation including the proposed amendment or an 
 11.24  estimate of the expected actuarial impact of the proposed 
 11.25  amendment prepared by the actuary of the relief association and 
 11.26  submitting that actuarial valuation or estimate to the clerk of 
 11.27  the municipality. 
 11.28     Subd. 12.  [APPLICATION OF OTHER LAWS TO CONTRIBUTION 
 11.29  RATE.] In the absence of any specific provision to the contrary, 
 11.30  no general or special law previously enacted may be construed as 
 11.31  reducing the amount or rate of contribution to a police or 
 11.32  firefighters relief association to which subdivision 1a applies, 
 11.33  by a municipality or member of the association, which is 
 11.34  required as a condition for the use of public funds or the levy 
 11.35  of taxes for the support of the association.  Each association, 
 11.36  the municipality in which it is organized, and the officers of 
 12.1   each, are authorized to do all things required by this section 
 12.2   as a condition for the use of public funds or the levy of taxes 
 12.3   for the support of the association. 
 12.4      Subd. 3 13.  [CITATION.] This section may be cited as the 
 12.5   "Police and Firefighters' Relief Associations Guidelines Act of 
 12.6   1969." 
 12.7      Sec. 2.  Minnesota Statutes 2000, section 69.80, is amended 
 12.8   to read: 
 12.9      69.80 [AUTHORIZED ADMINISTRATIVE EXPENSES.] 
 12.10     (a) Notwithstanding any provision of law to the contrary, 
 12.11  the payment of the following necessary, reasonable and direct 
 12.12  expenses of maintaining, protecting and administering the 
 12.13  special fund, when provided for in the bylaws of the association 
 12.14  and approved by the board of trustees, shall constitute 
 12.15  authorized administrative expenses of a police, salaried 
 12.16  firefighters', or volunteer firefighters' relief association 
 12.17  organized under any law of this state: 
 12.18     (a) (1) office expense, including, but not limited to, 
 12.19  rent, utilities, equipment, supplies, postage, periodical 
 12.20  subscriptions, furniture, fixtures, and salaries of 
 12.21  administrative personnel; 
 12.22     (b) (2) salaries of the president, secretary, and treasurer 
 12.23  of the association, or their designees, and any other official 
 12.24  of the relief association to whom a salary is payable under 
 12.25  bylaws or articles of incorporation in effect on January 1, 
 12.26  1986, and their itemized expenses incurred as a result of 
 12.27  fulfilling their responsibilities as administrators of the 
 12.28  special fund; 
 12.29     (c) (3) tuition, registration fees, organizational dues, 
 12.30  and other authorized expenses of the officers or members of the 
 12.31  board of trustees incurred in attending educational conferences, 
 12.32  seminars, or classes relating to the administration of the 
 12.33  relief association; 
 12.34     (d) (4) audit, actuarial, medical, legal, and investment 
 12.35  and performance evaluation expenses; 
 12.36     (e) (5) reimbursement to the officers and members of the 
 13.1   board of trustees, or their designees, for reasonable and 
 13.2   necessary expenses actually paid and incurred in the performance 
 13.3   of their duties as officers or members of the board; and 
 13.4      (f) (6) premiums on fiduciary liability insurance and 
 13.5   official bonds for the officers, members of the board of 
 13.6   trustees, and employees of the relief association. 
 13.7      (b) Any other expenses of the relief association shall must 
 13.8   be paid from the general fund of the association, if one 
 13.9   exists.  If a relief association has only one fund, that 
 13.10  fund shall be deemed to be is the special fund for purposes of 
 13.11  this section.  If a relief association has a special fund and a 
 13.12  general fund, and any expense of the relief association that is 
 13.13  directly related to the purposes for which both funds were 
 13.14  established, the payment of that expense shall must be 
 13.15  apportioned between the two funds on the basis of the benefits 
 13.16  derived by each fund. 
 13.17     Sec. 3.  Minnesota Statutes 2000, section 353A.08, 
 13.18  subdivision 6a, is amended to read: 
 13.19     Subd. 6a.  [MILITARY SERVICE CONTRIBUTION AND REFUND.] A 
 13.20  person who was an active member of a local police or 
 13.21  firefighters relief association upon its consolidation with the 
 13.22  public employees retirement association, and who was otherwise 
 13.23  eligible for automatic service credit for military service under 
 13.24  sections Minnesota Statutes 2000, section 423.57 and 424.23, and 
 13.25  who has not elected the type of benefit coverage provided by the 
 13.26  public employees police and fire fund at the time of 
 13.27  consolidation, must make employee contributions under section 
 13.28  353.01, subdivision 16, paragraph (h), to receive allowable 
 13.29  service credit from the association for a military service leave 
 13.30  after the effective date of the consolidation.  A person who 
 13.31  later elects, under subdivision 3, to retain benefit coverage 
 13.32  under the bylaws of the local relief association is eligible for 
 13.33  a refund from the association at the time of retirement.  The 
 13.34  association shall refund the employee contributions plus 
 13.35  interest at the rate of six percent, compounded quarterly, from 
 13.36  the date on which contributions were made until the first day of 
 14.1   the month in which the refund is paid.  The employer shall 
 14.2   receive a refund of the employer contributions.  The association 
 14.3   shall not pay a refund to a person who later elects, under 
 14.4   subdivision 3, the type of benefit coverage provided by the 
 14.5   public employees police and fire fund or to the person's 
 14.6   employer. 
 14.7      Sec. 4.  Minnesota Statutes 2000, section 423A.17, is 
 14.8   amended to read: 
 14.9      423A.17 [CONTINUATION OF SURVIVING SPOUSE BENEFITS UPON 
 14.10  REMARRIAGE.] 
 14.11     (a) Notwithstanding a provision of section 69.48; 423.387, 
 14.12  subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1; or 
 14.13  424.24, subdivision 1, or other law, article of incorporation, 
 14.14  or bylaw governing a local police or salaried firefighters 
 14.15  relief association to the contrary, the governing body of a 
 14.16  municipality may mandate the applicable local police or salaried 
 14.17  firefighters relief association to provide that a surviving 
 14.18  spouse benefit is payable for the life of the surviving spouse 
 14.19  and remains payable even in the event of the remarriage of the 
 14.20  surviving spouse. 
 14.21     (b) If the surviving spouse benefit change described in 
 14.22  paragraph (a) is made, the change applies to a surviving spouse 
 14.23  benefit payable on the effective date of the change and to the 
 14.24  potential surviving spouses of all active, deferred, or retired 
 14.25  members of the relief association who have that status on the 
 14.26  effective date of the change.  
 14.27     (c) In addition, if the surviving spouse benefit change 
 14.28  described in paragraph (a) is made a person who formerly was 
 14.29  receiving surviving spouse benefits from the relief association 
 14.30  and who had those benefits discontinued by virtue of the 
 14.31  remarriage is entitled, upon application, to a resumption of the 
 14.32  surviving spouse benefit, beginning with the last day of the 
 14.33  month following receipt of the application by the secretary of 
 14.34  the relief association.  Nothing in this section authorizes the 
 14.35  payment of a benefit amount to an estate. 
 14.36     (d) The change must be made by a municipal resolution 
 15.1   adopted by a majority vote of the municipality.  The resolution 
 15.2   must be filed by the secretary of the relief association with 
 15.3   the executive director of the legislative commission on pensions 
 15.4   and retirement, the state auditor, and the secretary of state. 
 15.5      Sec. 5.  Minnesota Statutes 2000, section 423A.171, is 
 15.6   amended to read: 
 15.7      423A.171 [BYLAW AMENDMENTS.] 
 15.8      (a) Notwithstanding a provision of section 69.48; 423.387, 
 15.9   subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1; 
 15.10  423B.10; or 424.24, subdivision 1, or other law governing a 
 15.11  local police or salaried firefighters' relief association to the 
 15.12  contrary, the board of trustees of a local relief association 
 15.13  governed by section 69.77 or its successor board under chapter 
 15.14  353A or 353B, with municipal approval as provided in section 
 15.15  69.77, subdivision 2i 11, may amend the bylaws of the relief 
 15.16  association to provide that a surviving spouse benefit is 
 15.17  payable to a surviving spouse who married a deferred or retired 
 15.18  member after the member's retirement, provided the marriage 
 15.19  occurred at least five years before the death of the member. 
 15.20     (b) If the surviving spouse benefit change described in 
 15.21  paragraph (a) is made, the change applies to a surviving spouse 
 15.22  benefit payable on the effective date of the change and to the 
 15.23  potential surviving spouses of all deferred or retired members 
 15.24  of the relief association who have that status on the effective 
 15.25  date of the change. 
 15.26     (c) The bylaw amendment is not effective until a certified 
 15.27  copy of the amendment and the municipal approval has been filed 
 15.28  by the municipal clerk with the executive director of the 
 15.29  legislative commission on pensions and retirement, the state 
 15.30  auditor, and the secretary of state. 
 15.31     (d) Notwithstanding the provisions of section 353B.11, a 
 15.32  surviving spouse benefit change made under this section for a 
 15.33  relief association that has consolidated with the public 
 15.34  employees retirement association is effective upon approval by 
 15.35  the public employees retirement association and the municipality 
 15.36  pursuant to under paragraph (c). 
 16.1      Sec. 6.  Minnesota Statutes 2000, section 424A.09, is 
 16.2   amended to read: 
 16.3      424A.09 [APPLICATION TO CERTAIN RELIEF ASSOCIATIONS.] 
 16.4      This chapter shall supersede supersedes any special law 
 16.5   applicable to any municipal volunteer firefighters' relief 
 16.6   association or independent nonprofit firefighting corporation 
 16.7   specifically authorizing the relief association or nonprofit 
 16.8   firefighting corporation to exceed the service pension 
 16.9   limitations contained in Minnesota Statutes 1978, sections 69.06 
 16.10  and 69.691.  Any relief association which amended its bylaws to 
 16.11  provide for a full pro rata service pension amount at the 
 16.12  specified retirement age with 15 years service credit or 75 
 16.13  percent of the pro rata service pension amount at the specified 
 16.14  retirement age with ten years of service pursuant to under 
 16.15  Minnesota Statutes 1978, section 69.06, may continue to provide 
 16.16  the specified service pension amounts at the applicable years of 
 16.17  credited service to any member who has credit for at least ten 
 16.18  or 15 years, whichever is the applicable minimum service period 
 16.19  specified in the bylaws governing the relief association, on or 
 16.20  before December 31, 1979 notwithstanding section 424A.02.  
 16.21     Sec. 7.  [APPLICATION; BLOOMINGTON FIREFIGHTERS RELIEF 
 16.22  ASSOCIATION.] 
 16.23     To the extent that Minnesota Statutes 2000, chapter 424, 
 16.24  applied to the Bloomington firefighters relief association on 
 16.25  the day before the effective date of section 5, Minnesota 
 16.26  Statutes 2000, chapter 424, continues to apply to the 
 16.27  Bloomington firefighters relief association after that date. 
 16.28     Sec. 8.  [REVISOR INSTRUCTIONS.] 
 16.29     (a) In the next and subsequent editions of Minnesota 
 16.30  Statutes, the revisor of statutes shall not print Minnesota 
 16.31  Statutes, sections 423.41 to 423.62, but shall denote those 
 16.32  sections as "[LOCAL, CITY OF FAIRMONT, POLICE PENSIONS.]." 
 16.33     (b) In the next and subsequent editions of Minnesota 
 16.34  Statutes, the revisor of statutes shall, in each section 
 16.35  indicated in column A, replace the cross-reference specified in 
 16.36  column B with the cross-reference set forth in column C: 
 17.1      Column A             Column B              Column C
 17.2      69.021, subd. 10     69.77, subd. 2a       69.77, subd. 3
 17.3      69.021, subd. 10     69.77, subd. 2b       69.77, subd. 4
 17.4      69.021, subd. 10     69.77, subd. 2c       69.77, subd. 5
 17.5      299A.465, subd. 5    424.03                Minnesota Statutes,
 17.6                                                   2000, 424.03 
 17.7      353A.07, subd. 6     69.77, subd. 2a       69.77, subd. 3 
 17.8      353A.09, subd. 4     69.77, subd. 2a       69.77, subd. 3 
 17.9      356.216              69.77, subd. 2b       69.77, subd. 4 
 17.10     356.219, subd. 2     69.77, subd. 2g       69.77, subd. 9 
 17.11     423.01, subd. 2      69.77, subd. 2b       69.77, subd. 4 
 17.12     423A.18              69.77, subd. 2i       69.77, subd. 11 
 17.13     423A.19, subd. 4     69.77, subd. 2i       69.77, subd. 11 
 17.14     423B.06, subd. 1     69.77, subd. 2a       69.77, subd. 3 
 17.15     423B.06, subd. 1     69.77, subd. 2b       69.77, subd. 4 
 17.16     423B.06, subd. 1     69.77, subd. 2c       69.77, subd. 5 
 17.17     423B.06, subd. 1     69.77, subd. 2d       69.77, subd. 6 
 17.18     423B.06, subd. 1     69.77, subd. 2e       69.77, subd. 7 
 17.19     423B.06, subd. 1     69.77, subd. 2f       69.77, subd. 8 
 17.20     423B.21, subd. 1     69.77, subd. 2b       69.77, subd. 4 
 17.21     Sec. 9.  [REPEALER; OBSOLETE POLICE AND FIRE PENSION LAWS.] 
 17.22     Subdivision 1.  [FIRST CLASS CITY FIRE; 
 17.23  REPEALER.] Minnesota Statutes 2000, sections 69.25; 69.26; 
 17.24  69.27; 69.28; 69.29; 69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 
 17.25  69.40; 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 69.48; 
 17.26  69.49; 69.50; 69.51; 69.52; 69.53; and 69.62, are repealed. 
 17.27     Subd. 2.  [THIRD CLASS CITY POLICE; REPEALER.] Minnesota 
 17.28  Statutes 2000, sections 423.37; 423.371; 423.372; 423.373; 
 17.29  423.374; 423.375; 423.377; 423.378; 423.379; 423.38; 423.381; 
 17.30  423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 423.388; 
 17.31  423.389; 423.39; 423.391; and 423.392, are repealed. 
 17.32     Subd. 3.  [SECOND CLASS CITY POLICE; REPEALER.] Minnesota 
 17.33  Statutes 2000, sections 423.801; 423.802; 423.803; 423.804; 
 17.34  423.805; 423.806; 423.808; 423.809; 423.810; 423.812; 423.813; 
 17.35  423.814; and 423.90, are repealed. 
 17.36     Subd. 4.  [SECOND CLASS CITY FIRE; REPEALER.] Minnesota 
 18.1   Statutes 2000, sections 424.01; 424.02; 424.03; 424.04; 424.05; 
 18.2   424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 424.17; 424.18; 
 18.3   424.19; 424.20; 424.21; 424.22; 424.23; 424.24; 424.25; 424.27; 
 18.4   424.28; and 424.29, are repealed. 
 18.5      Subd. 5.  [ALBERT LEA FIRE; REPEALER.] Laws 1943, chapters 
 18.6   170 and 397; Laws 1947, chapter 274; Laws 1949, chapters 87 and 
 18.7   281; Laws 1951, chapters 233, 420, and 435; Laws 1953, chapters 
 18.8   44 and 406; Laws 1957, chapter 127; Laws 1959, chapter 207; Laws 
 18.9   1963, chapter 643; Laws 1984, chapter 574, section 23; Laws 
 18.10  1985, chapter 261, section 36; and Laws 1993, chapter 72, are 
 18.11  repealed. 
 18.12     Subd. 6.  [ALBERT LEA POLICE; REPEALER.] Laws 1965, chapter 
 18.13  174; Laws 1976, chapter 247; and Laws 1985, chapter 261, section 
 18.14  36, are repealed. 
 18.15     Subd. 7.  [ANOKA POLICE; REPEALER.] Laws 1965, chapter 174; 
 18.16  Laws 1973, chapter 587; Laws 1978, chapter 563, section 28; and 
 18.17  Laws 1981, chapter 224, sections 263 and 264, are repealed. 
 18.18     Subd. 8.  [AUSTIN FIRE; REPEALER.] Laws 1943, chapter 170; 
 18.19  Laws 1949, chapter 87; Laws 1951, chapters 45 and 435; Laws 
 18.20  1957, chapter 164; Laws 1963, chapter 36; Laws 1965, chapter 
 18.21  418; Laws 1976, chapter 36; Laws 1978, chapter 579; Laws 1980, 
 18.22  chapter 341, sections 9 and 10; Laws 1981, chapter 224, sections 
 18.23  268 and 270; Laws 1992, chapter 455; and Laws 1994, chapter 490, 
 18.24  are repealed. 
 18.25     Subd. 9.  [AUSTIN POLICE; REPEALER.] Laws 1943, chapter 
 18.26  432; Laws 1976, chapter 36; Laws 1980, chapter 341, sections 9 
 18.27  and 10; and Laws 1981, chapter 224, sections 268 and 270, are 
 18.28  repealed. 
 18.29     Subd. 10.  [BLOOMINGTON POLICE; REPEALER.] Laws 1965, 
 18.30  chapter 498; Laws 1975, chapter 121; Laws 1978, chapter 563, 
 18.31  section 17; Laws 1980, chapter 341, section 6; Laws 1981, 
 18.32  chapter 224, section 240; and Laws 1993, chapter 202, article 1, 
 18.33  are repealed. 
 18.34     Subd. 11.  [BRAINERD POLICE; REPEALER.] Laws 1959, chapter 
 18.35  437, is repealed. 
 18.36     Subd. 12.  [BROOKLYN CENTER POLICE; REPEALER.] Laws 1967, 
 19.1   chapter 736; and Laws 1978, chapter 563, section 18, are 
 19.2   repealed. 
 19.3      Subd. 13.  [BUHL POLICE; REPEALER.] Laws 1957, chapter 630; 
 19.4   Laws 1975, chapter 425; Laws 1976, chapter 247; Laws 1981, 
 19.5   chapter 68, section 43; Laws 1982, chapter 578, article II, 
 19.6   section 1, subdivision 8; Laws 1984, chapter 574, sections 18 
 19.7   and 20; Laws 1985, chapter 261, section 18; and Laws 1986, 
 19.8   chapter 458, section 23, are repealed. 
 19.9      Subd. 14.  [CHISHOLM FIRE; REPEALER.] Laws 1935, chapter 
 19.10  208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 
 19.11  Laws 1947, chapter 329; Laws 1951, chapter 144; Laws 1953, 
 19.12  chapter 391; Laws 1955, chapters 293 and 827; Laws 1961, chapter 
 19.13  631; Laws 1971, chapter 809; Laws 1973, chapter 433; Laws 1976, 
 19.14  chapter 78; Laws 1978, chapter 648; Laws 1979, chapter 131, 
 19.15  section 3; Laws 1981, chapter 68, sections 36 and 37; and Laws 
 19.16  1991, chapter 269, article 2, section 12, are repealed. 
 19.17     Subd. 15.  [CHISHOLM POLICE; REPEALER.] Laws 1945, chapter 
 19.18  74; Laws 1949, chapter 164; Laws 1953, chapter 235; Laws 1959, 
 19.19  chapter 211; Laws 1961, chapter 290; Laws 1971, chapter 810; 
 19.20  Laws 1973, chapter 433; Laws 1976, chapter 78; Laws 1978, 
 19.21  chapter 563, section 27; and 648; Laws 1979, chapter 131, 
 19.22  section 3; Laws 1981, chapters 68, sections 31, 32, and 33; and 
 19.23  224, section 261; and Laws 1991, chapter 269, article 2, section 
 19.24  12, are repealed. 
 19.25     Subd. 16.  [CLOQUET FIRE; REPEALER.] Laws 1941, chapter 
 19.26  196; Laws 1953, chapter 253; Laws 1955, chapter 42; Laws 1961, 
 19.27  chapter 295; Laws 1965, chapter 594; Laws 1967, chapter 783; and 
 19.28  Laws 1969, chapter 716, are repealed. 
 19.29     Subd. 17.  [COLUMBIA HEIGHTS FIRE; REPEALER.] Laws 1965, 
 19.30  chapter 605; Laws 1975, chapter 424; Laws 1977, chapter 374, 
 19.31  sections 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 
 19.32  52, 53, 54, 55, 56, 57, 58, 59, and 60; Laws 1978, chapter 563, 
 19.33  sections 29 and 30; and Laws 1981, chapter 224, section 267, are 
 19.34  repealed. 
 19.35     Subd. 18.  [COLUMBIA HEIGHTS POLICE; REPEALER.] Laws 1977, 
 19.36  chapter 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 
 20.1   14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 
 20.2   30, 31, 32, 33, 34, 35, 36, and 37; and Laws 1993, chapter 126, 
 20.3   are repealed. 
 20.4      Subd. 19.  [CROOKSTON FIRE; REPEALER.] Laws 1949, chapter 
 20.5   378; Laws 1957, chapter 144; Laws 1963, chapter 636; Laws 1971, 
 20.6   chapter 51; Laws 1978, chapter 563, sections 24, 25, and 26; 
 20.7   Laws 1981, chapter 224, sections 252 and 253; and Laws 1983, 
 20.8   chapter 291, sections 9, 10, 11, 12, 13, 14, 15, 16, and 17, are 
 20.9   repealed. 
 20.10     Subd. 20.  [CROOKSTON POLICE; REPEALER.] Laws 1976, chapter 
 20.11  85; Laws 1977, chapter 275; Laws 1983, chapter 84, section 1; 
 20.12  and Laws 1984, chapter 574, section 26, are repealed. 
 20.13     Subd. 21.  [CRYSTAL POLICE; REPEALERS.] Laws 1963, chapter 
 20.14  619; Laws 1969, chapter 1087; and Laws 1980, chapter 607, 
 20.15  article XV, section 23, are repealed. 
 20.16     Subd. 22.  [DULUTH FIRE; REPEALER.] Laws 1917, chapter 196; 
 20.17  Laws 1919, chapter 515; Laws 1955, chapter 188; Laws 1961, 
 20.18  chapter 186; Laws 1963, chapter 208; Laws 1965, chapter 179; 
 20.19  Laws 1967, chapter 732; Laws 1975, chapter 127; Laws 1976, 
 20.20  chapter 78, section 4; Laws 1977, chapter 164, section 3; Laws 
 20.21  1992, chapter 448, section 1; and Laws 1994, chapter 474, are 
 20.22  repealed. 
 20.23     Subd. 23.  [DULUTH POLICE; REPEALER.] Laws 1915, chapter 
 20.24  68; Laws 1921, chapter 118; Laws 1923, chapter 54; Laws 1925, 
 20.25  chapter 197; Laws 1943, chapter 267; Laws 1949, chapter 153; 
 20.26  Laws 1953, chapter 91; Laws 1955, chapter 187; Laws 1959, 
 20.27  chapter 191; Laws 1975, chapter 408; Laws 1976, chapter 99; Laws 
 20.28  1980, chapter 600, section 11; and Laws 1992, chapter 448, are 
 20.29  repealed.  
 20.30     Subd. 24.  [EVELETH FIRE; REPEALER.] Laws 1935, chapter 
 20.31  208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124; 
 20.32  Laws 1941, chapters 74 and 182; Laws 1947, chapter 329; Laws 
 20.33  1951, chapter 144; Laws 1953, chapter 391; Laws 1955, chapter 
 20.34  293; Laws 1961, chapter 620; Laws 1963, chapter 670; and Laws 
 20.35  1969, chapter 552, are repealed. 
 20.36     Subd. 25.  [EVELETH POLICE; REPEALER.] Laws 1965, chapter 
 21.1   636; and Laws 1969, chapter 670, are repealed. 
 21.2      Subd. 26.  [FARIBAULT FIRE; REPEALER.] Laws 1947, chapter 
 21.3   43; Laws 1949, chapter 154; Laws 1951, chapter 43; Laws 1957, 
 21.4   chapter 36; Laws 1961, chapter 443; Laws 1967, chapter 807; Laws 
 21.5   1969, chapter 614; Laws 1975, chapter 389; Laws 1984, chapter 
 21.6   574, section 22; Laws 1985, chapter 259, sections 5 and 6; Laws 
 21.7   1985, First Special Session chapter 16, article 2, section 6; 
 21.8   and Laws 1993, chapter 112, section 2, are repealed. 
 21.9      Subd. 27.  [FARIBAULT POLICE; REPEALER.] Laws 1985, chapter 
 21.10  259, sections 5 and 6; Laws 1985, First Special Session chapter 
 21.11  16, article 2, section 6, are repealed. 
 21.12     Subd. 28.  [FRIDLEY FIRE; REPEALER.] Laws 1969, chapter 
 21.13  594, is repealed. 
 21.14     Subd. 29.  [FRIDLEY POLICE; REPEALER.] Laws 1977, chapter 
 21.15  83, is repealed. 
 21.16     Subd. 30.  [HIBBING FIRE; REPEALER.] Laws 1935, chapter 
 21.17  192; Laws 1943, chapter 413; Laws 1945, chapter 182; Laws 1947, 
 21.18  chapter 101; Laws 1951, chapter 48; Laws 1955, chapter 294; Laws 
 21.19  1959, chapter 208; Laws 1967, chapter 816; Laws 1969, chapter 
 21.20  686; Laws 1971, chapter 614; Laws 1975, chapter 254, sections 5 
 21.21  and 6; Laws 1977, chapter 169; Laws 1981, chapter 224, section 
 21.22  260; Laws 1982, chapter 443; Laws 1987, chapter 372, article 2, 
 21.23  sections 7, 8, and 9; and Laws 1991, chapter 269, article 2, 
 21.24  sections 12 and 13, are repealed. 
 21.25     Subd. 31.  [HIBBING POLICE; REPEALER.] Laws 1931, chapter 
 21.26  48; Laws 1933, chapter 122; Laws 1939, chapter 304; Laws 1945, 
 21.27  chapter 300; Laws 1947, chapter 40; Laws 1949, chapter 191; Laws 
 21.28  1951, chapter 243; Laws 1953, chapter 401; Laws 1957, chapter 
 21.29  793; Laws 1965, chapter 536; Laws 1967, chapter 678; Laws 1969, 
 21.30  chapter 672; Laws 1971, chapter 807; Laws 1983, chapter 74; Laws 
 21.31  1987, chapter 372, article 2, section 7; and Laws 1991, chapter 
 21.32  269, article 2, section 12, are repealed. 
 21.33     Subd. 32.  [MANKATO FIRE; REPEALER.] Laws 1949, chapter 
 21.34  144; Laws 1953, chapter 37; Laws 1957, chapter 16; Laws 1971, 
 21.35  chapter 407; Extra Session Laws 1971, chapter 41; Laws 1981, 
 21.36  chapter 224, sections 258 and 259; and Laws 1989, chapter 319, 
 22.1   article 11, section 3, are repealed. 
 22.2      Subd. 33.  [MANKATO POLICE; REPEALER.] Laws 1971, chapter 
 22.3   407; Extra Session Laws 1971, chapter 41; Laws 1981, chapter 
 22.4   224, sections 258 and 259; Laws 1986, chapter 458, section 34; 
 22.5   and Laws 1987, chapter 372, article 2, section 12, are repealed. 
 22.6      Subd. 34.  [MOORHEAD FIRE; REPEALER.] Laws 1951, chapter 
 22.7   499; Laws 1955, chapter 75; Laws 1965, chapter 190; Laws 1969, 
 22.8   chapter 138; Laws 1975, chapter 120; Laws 1978, chapter 563, 
 22.9   sections 12 and 13; Laws 1979, chapter 216, sections 34, 35, 36, 
 22.10  37, 38, 39, 40, 41, 42, 43, and 44; Laws 1981, chapter 224, 
 22.11  section 236; and Laws 1982, chapter 578, article III, section 
 22.12  18, are repealed. 
 22.13     Subd. 35.  [MOORHEAD POLICE; REPEALER.] Laws 1945, chapter 
 22.14  277; Laws 1967, chapter 775; Laws 1978, chapter 563, section 19; 
 22.15  Laws 1979, chapter 216, sections 27, 28, 29, 30, 31, and 44; 
 22.16  Laws 1980, chapter 600, section 16; Laws 1981, chapter 224, 
 22.17  section 243; and Laws 1982, chapter 578, article III, section 
 22.18  18, are repealed. 
 22.19     Subd. 36.  [NEW ULM POLICE; REPEALER.] Laws 1965, chapter 
 22.20  174; Laws 1974, chapter 251; Laws 1981, chapter 224, sections 
 22.21  265 and 266; and Laws 1985, chapter 261, section 20, are 
 22.22  repealed. 
 22.23     Subd. 37.  [RED WING FIRE; REPEALER.] Laws 1953, chapter 
 22.24  348; Laws 1955, chapter 49; Laws 1957, chapter 10; Laws 1961, 
 22.25  chapter 300; Laws 1965, chapter 604; Laws 1973, chapter 359; 
 22.26  Laws 1975, chapter 254, sections 1, 2, 3, and 4; and Laws 1984, 
 22.27  chapter 574, section 24, are repealed. 
 22.28     Subd. 38.  [RED WING POLICE; REPEALER.] Laws 1965, chapter 
 22.29  174; Laws 1973, chapter 346; Laws 1983, chapter 291, section 8; 
 22.30  and Laws 1994, chapter 410, are repealed. 
 22.31     Subd. 39.  [RICHFIELD FIRE; REPEALER.] Laws 1955, chapter 
 22.32  348; Extra Session Laws 1961, chapter 28; Laws 1963, chapter 
 22.33  464; Laws 1967, chapter 798; Laws 1978, chapter 563, sections 20 
 22.34  and 21; Laws 1980, chapter 607, article XV, section 23; Laws 
 22.35  1981, chapter 224, section 244; and Laws 1997, chapter 241, 
 22.36  article 2, sections 2, 3, 4, 5, 6, 9, 10, 13, 14, and 20, are 
 23.1   repealed. 
 23.2      Subd. 40.  [RICHFIELD POLICE; REPEALER.] Laws 1957, chapter 
 23.3   455; Laws 1965, chapter 458; Laws 1978, chapter 563, section 16; 
 23.4   Laws 1980, chapter 607, article XV, section 23; Laws 1981, 
 23.5   chapter 224, section 239; and Laws 1991, chapter 96, are 
 23.6   repealed. 
 23.7      Subd. 41.  [ROCHESTER FIRE; REPEALER.] Laws 1959, chapter 
 23.8   131; Laws 1969, chapter 694; Laws 1978, chapter 563, section 14; 
 23.9   Laws 1980, chapter 600, sections 18 and 22; and Laws 1981, 
 23.10  chapter 224, section 237, are repealed. 
 23.11     Subd. 42.  [ROCHESTER POLICE; REPEALER.] Laws 1969, chapter 
 23.12  641; Laws 1975, chapter 368, section 54; Laws 1978, chapters 
 23.13  563, section 23; and 793, section 96; Laws 1980, chapter 600, 
 23.14  sections 18 and 22; and Laws 1981, chapter 224, section 248, are 
 23.15  repealed. 
 23.16     Subd. 43.  [ST. CLOUD FIRE; REPEALER.] Laws 1961, chapter 
 23.17  343; Laws 1963, chapter 453; Laws 1967, chapter 702; Laws 1974, 
 23.18  chapter 382; Laws 1977, chapter 270; Laws 1978, chapter 690, 
 23.19  sections 9 and 10; and Laws 1982, chapter 402, are repealed. 
 23.20     Subd. 44.  [ST. CLOUD POLICE; REPEALER.] Laws 1973, chapter 
 23.21  432; Laws 1980, chapter 341, sections 2, 3, 4, and 5; Laws 1984, 
 23.22  chapter 574, section 25; and Laws 1999, chapter 222, article 3, 
 23.23  section 6, are repealed. 
 23.24     Subd. 45.  [ST. LOUIS PARK FIRE; REPEALER.] Laws 1967, 
 23.25  chapter 730; Laws 1969, chapter 576; Laws 1978, chapter 563, 
 23.26  section 22; Laws 1981, chapter 224, section 247; and Laws 1985, 
 23.27  chapter 261, sections 32, 33, 34, and 35, are repealed. 
 23.28     Subd. 46.  [ST. LOUIS PARK POLICE; REPEALER.] Laws 1963, 
 23.29  chapter 454; Laws 1980, chapter 600, section 17; Laws 1984, 
 23.30  chapter 574, section 19; and Laws 1990, chapter 589, article 1, 
 23.31  section 7, are repealed. 
 23.32     Subd. 47.  [ST. PAUL FIRE; REPEALER.] Laws 1917, chapter 
 23.33  196; Laws 1919, chapter 515; Laws 1955, chapter 375; Laws 1957, 
 23.34  chapters 256 and 257; Laws 1961, chapter 376; Laws 1963, chapter 
 23.35  221; Laws 1965, chapter 790; Laws 1967, chapters 644 and 708; 
 23.36  Laws 1969, chapters 443, 669, and 671; Laws 1973, chapter 287; 
 24.1   Laws 1975, chapter 423; Laws 1977, chapter 164, section 1; Laws 
 24.2   1981, chapter 68, section 35; Laws 1989, chapter 319, article 
 24.3   11, section 12; Laws 1992, chapters 422 and 563, sections 3, 4, 
 24.4   and 5; Laws 1993, chapter 110; Laws 1996, chapter 448, article 
 24.5   2, section 1; and Laws 1997, chapter 241, article 2, sections 11 
 24.6   and 15, are repealed. 
 24.7      Subd. 48.  [ST. PAUL POLICE; REPEALER.] Special Laws 1889, 
 24.8   chapter 425; Special Laws 1891, chapter 11; Laws 1897, chapters 
 24.9   389 and 390; Laws 1919, chapter 68; Laws 1921, chapter 118; Laws 
 24.10  1923, chapter 54; Laws 1925, chapter 197; Laws 1955, chapter 
 24.11  151; Laws 1961, chapters 434 and 435, section 2; Laws 1963, 
 24.12  chapter 271; Laws 1965, chapter 465; Laws 1969, chapters 442, 
 24.13  668, and 671; Laws 1971, chapter 549; Laws 1973, chapter 286; 
 24.14  Laws 1980, chapter 600, sections 12, 13, 14, and 15; Laws 1981, 
 24.15  chapter 68, section 34; Laws 1983, chapter 47; Laws 1988, 
 24.16  chapter 709, article 8, section 5; Laws 1989, chapter 319, 
 24.17  article 11, sections 2 and 12; Laws 1992, chapters 393, section 
 24.18  1; 563, section 5; and 586, section 1; Laws 1994, chapter 409; 
 24.19  Laws 1996, chapter 448, article 2, section 1; and Laws 1997, 
 24.20  chapter 241, article 2, sections 11 and 15, are repealed. 
 24.21     Subd. 49.  [SOUTH ST. PAUL FIRE; REPEALER.] Laws 1943, 
 24.22  chapter 397; Laws 1947, chapter 274; Laws 1949, chapter 281; 
 24.23  Laws 1951, chapters 233 and 420; Laws 1953, chapters 44 and 406; 
 24.24  Laws 1957, chapter 127; Laws 1961, chapter 747; Laws 1963, 
 24.25  chapter 715; Laws 1965, chapter 457; Laws 1969, chapter 849; and 
 24.26  Laws 1971, chapter 178, are repealed. 
 24.27     Subd. 50.  [SOUTH ST. PAUL POLICE; REPEALER.] Laws 1994, 
 24.28  chapter 541, section 3, is repealed. 
 24.29     Subd. 51.  [THIEF RIVER FALLS POLICE; REPEALER.] Laws 1981, 
 24.30  chapters 68, sections 41 and 42; 224, sections 272 and 273; Laws 
 24.31  1985, chapter 261, section 14; and Laws 1992, chapter 431, 
 24.32  section 1, are repealed. 
 24.33     Subd. 52.  [VIRGINIA POLICE; REPEALER.] Laws 1935, chapters 
 24.34  92 and 259; Laws 1937, chapter 197; Laws 1949, chapter 235; Laws 
 24.35  1965, chapter 174; Laws 1982, chapter 574, sections 3, 4, 5, 6, 
 24.36  and 8; Laws 1985, chapter 261, sections 15 and 16; Laws 1989, 
 25.1   chapter 319, article 11, section 4; and Laws 1992, chapter 392, 
 25.2   section 1, are repealed. 
 25.3      Subd. 53.  [WEST ST. PAUL FIRE; REPEALER.] Laws 1961, 
 25.4   chapter 399; Laws 1965, chapter 540; Laws 1982, chapter 610, 
 25.5   sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20; 
 25.6   and Laws 1984, chapter 574, section 33, are repealed. 
 25.7      Subd. 54.  [WEST ST. PAUL POLICE; REPEALER.] Laws 1965, 
 25.8   chapter 174; Laws 1967, chapter 751; Laws 1981, chapter 297, 
 25.9   sections 1 and 2; Laws 1987, chapter 372, article 2, section 10; 
 25.10  and Laws 1995, chapter 262, article 10, section 4, are repealed. 
 25.11     Subd. 55.  [WINONA FIRE; REPEALER.] Extra Session Laws 
 25.12  1961, chapter 80; Laws 1963, chapter 443; and Laws 1967, chapter 
 25.13  848, are repealed. 
 25.14     Subd. 56.  [WINONA POLICE; REPEALER.] Laws 1959, chapter 
 25.15  108; Extra Session Laws 1961, chapter 80; Laws 1977, chapter 
 25.16  429, section 62; Laws 1986, chapter 359, sections 22, 23, 24, 
 25.17  and 25; and Laws 1988, chapter 709, article 9, section 5, are 
 25.18  repealed. 
 25.19     Subd. 57.  [OTHER REPEALER.] Minnesota Statutes 2000, 
 25.20  sections 69.78; 297I.10, subdivision 2; and 423A.03, are 
 25.21  repealed. 
 25.22     Sec. 10.  [EFFECTIVE DATE.] 
 25.23     Sections 1 to 9 are effective on July 1, 2002. 
 25.24                             ARTICLE 2 
 25.25                    PERA MEMBERSHIP ELIGIBILITY 
 25.26                    AND SERVICE CREDIT PRORATION 
 25.27     Section 1.  Minnesota Statutes 2001 Supplement, section 
 25.28  353.01, subdivision 2a, is amended to read: 
 25.29     Subd. 2a.  [INCLUDED EMPLOYEES.] (a) Public employees whose 
 25.30  salary from one governmental subdivision exceeds $425 in any 
 25.31  month shall participate as members of the association.  If the 
 25.32  salary is less than $425 in a subsequent month, the employee 
 25.33  retains membership eligibility.  Eligible public employees shall 
 25.34  participate as members of the association with retirement 
 25.35  coverage by the public employees retirement plan or the public 
 25.36  employees police and fire retirement plan under this chapter, or 
 26.1   the local government correctional employees retirement plan 
 26.2   under chapter 353E, whichever applies, as a condition of their 
 26.3   employment on the first day of employment unless they: 
 26.4      (1) are specifically excluded under subdivision 2b; 
 26.5      (2) do not exercise their option to elect retirement 
 26.6   coverage in the association as provided in subdivision 2d, 
 26.7   paragraph (a); or 
 26.8      (3) are employees of the governmental subdivisions listed 
 26.9   in subdivision 2d, paragraph (b), where the governmental 
 26.10  subdivision has not elected to participate as a governmental 
 26.11  subdivision covered by the association. 
 26.12     (b) A public employee who was a member of the association 
 26.13  on June 30, 2002, based on employment that qualified for 
 26.14  membership coverage by the public employees retirement plan or 
 26.15  the public employees police and fire plan under this chapter, or 
 26.16  the local government correctional employees retirement plan 
 26.17  under chapter 353E as of June 30, 2002, retains that membership 
 26.18  until the employee terminates public employment under 
 26.19  subdivision 11a or terminates membership under subdivision 11b. 
 26.20     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
 26.21  353.01, subdivision 2b, is amended to read: 
 26.22     Subd. 2b.  [EXCLUDED EMPLOYEES.] The following public 
 26.23  employees are not eligible to participate as members of the 
 26.24  association with retirement coverage by the public employees 
 26.25  retirement plan, the local government correctional employees 
 26.26  retirement plan under chapter 353E, or the public employees 
 26.27  police and fire retirement plan: 
 26.28     (1) public officers, other than county sheriffs, who are 
 26.29  elected to a governing body, or persons who are appointed to 
 26.30  fill a vacancy in an elective office of a governing body, whose 
 26.31  term of office first commences on or after July 1, 2002, for the 
 26.32  service to be rendered in that elective position.  Elected 
 26.33  governing body officials who were active members of the 
 26.34  association's coordinated or basic retirement plans as of June 
 26.35  30, 2002, continue participation throughout incumbency in office 
 26.36  until termination of public service occurs as defined in 
 27.1   subdivision 11a; 
 27.2      (2) election officers or election judges; 
 27.3      (3) patient and inmate personnel who perform services for a 
 27.4   governmental subdivision; 
 27.5      (4) employees who are hired for a temporary position under 
 27.6   subdivision 12a, and employees who resign from a nontemporary 
 27.7   position and accept a temporary position within 30 days in the 
 27.8   same governmental subdivision.  An employer must not apply the 
 27.9   definition of temporary position so as to exclude employees who 
 27.10  are hired to fill positions that are permanent or that are for 
 27.11  an unspecified period but who are serving a probationary period 
 27.12  at the start of the employment.  If the period of employment 
 27.13  extends beyond six consecutive months and the employee earns 
 27.14  more than $425 from one governmental subdivision in any calendar 
 27.15  month, the department head shall report the employee for 
 27.16  membership and require employee deductions be made on behalf of 
 27.17  the employee under section 353.27, subdivision 4. 
 27.18     The membership eligibility of an employee who resigns or is 
 27.19  dismissed from a temporary position and within 30 days accepts 
 27.20  another temporary position in the same governmental subdivision 
 27.21  is determined on the total length of employment rather than on 
 27.22  each separate position.  Membership eligibility of an employee 
 27.23  who holds concurrent temporary and nontemporary positions in one 
 27.24  governmental subdivision is determined by the length of 
 27.25  employment and salary of each separate position; 
 27.26     (5) employees who are employed by reason of work emergency 
 27.27  caused by fire, flood, storm, or similar disaster; 
 27.28     (6) employees who by virtue of their employment in one 
 27.29  governmental subdivision are required by law to be a member of 
 27.30  and to contribute to any of the plans or funds administered by 
 27.31  the Minnesota state retirement system, the teachers retirement 
 27.32  association, the Duluth teachers retirement fund association, 
 27.33  the Minneapolis teachers retirement association, the St. Paul 
 27.34  teachers retirement fund association, the Minneapolis employees 
 27.35  retirement fund, or any police or firefighters relief 
 27.36  association governed by section 69.77 that has not consolidated 
 28.1   with the public employees retirement association, or any local 
 28.2   police or firefighters consolidation account but who have not 
 28.3   elected the type of benefit coverage provided by the public 
 28.4   employees police and fire fund under sections 353A.01 to 
 28.5   353A.10, or any persons covered by section 353.665, subdivision 
 28.6   4, 5, or 6, who have not elected public employees police and 
 28.7   fire plan benefit coverage.  This clause must not be construed 
 28.8   to prevent a person from being a member of and contributing to 
 28.9   the public employees retirement association and also belonging 
 28.10  to and contributing to another public pension fund for other 
 28.11  service occurring during the same period of time.  A person who 
 28.12  meets the definition of "public employee" in subdivision 2 by 
 28.13  virtue of other service occurring during the same period of time 
 28.14  becomes a member of the association unless contributions are 
 28.15  made to another public retirement fund on the salary based on 
 28.16  the other service or to the teachers retirement association by a 
 28.17  teacher as defined in section 354.05, subdivision 2; 
 28.18     (7) persons who are members of a religious order and are 
 28.19  excluded from coverage under the federal Old Age, Survivors, 
 28.20  Disability, and Health Insurance Program for the performance of 
 28.21  service as specified in United States Code, title 42, section 
 28.22  410(a)(8)(A), as amended through January 1, 1987, if no 
 28.23  irrevocable election of coverage has been made under section 
 28.24  3121(r) of the Internal Revenue Code of 1954, as amended; 
 28.25     (8) employees who at the time they are hired by a of a 
 28.26  governmental subdivision who have not reached the age of 23 and 
 28.27  are enrolled on a full-time basis to attend or are attending 
 28.28  classes at an accredited school, college, or university in an 
 28.29  undergraduate, graduate, or professional-technical program, or a 
 28.30  public or charter high school, if the employment is predicated 
 28.31  on the student status of the individual; 
 28.32     (9) resident physicians, medical interns, and pharmacist 
 28.33  residents and pharmacist interns who are serving in a degree or 
 28.34  residency program in public hospitals; 
 28.35     (10) students who are serving in an internship or residency 
 28.36  program sponsored by an accredited educational institution; 
 29.1      (11) persons who hold a part-time adult supplementary 
 29.2   technical college license who render part-time teaching service 
 29.3   in a technical college; 
 29.4      (12) except for employees of Hennepin county, foreign 
 29.5   citizens working for a governmental subdivision with a work 
 29.6   permit of less than three years, or an H-1b visa valid for less 
 29.7   than three years of employment.  Upon notice to the association 
 29.8   that the work permit or visa extends beyond the three-year 
 29.9   period, the foreign citizens are eligible to be reported for 
 29.10  membership from the date of the extension; 
 29.11     (13) public hospital employees who elected not to 
 29.12  participate as members of the association before 1972 and who 
 29.13  did not elect to participate from July 1, 1988, to October 1, 
 29.14  1988; 
 29.15     (14) except as provided in section 353.86, volunteer 
 29.16  ambulance service personnel, as defined in subdivision 35, but 
 29.17  persons who serve as volunteer ambulance service personnel may 
 29.18  still qualify as public employees under subdivision 2 and may be 
 29.19  members of the public employees retirement association and 
 29.20  participants in the public employees retirement fund or the 
 29.21  public employees police and fire fund, whichever applies, on the 
 29.22  basis of compensation received from public employment service 
 29.23  other than service as volunteer ambulance service personnel; 
 29.24     (15) except as provided in section 353.87, volunteer 
 29.25  firefighters, as defined in subdivision 36, engaging in 
 29.26  activities undertaken as part of volunteer firefighter duties; 
 29.27  provided that a person who is a volunteer firefighter may still 
 29.28  qualify as a public employee under subdivision 2 and may be a 
 29.29  member of the public employees retirement association and a 
 29.30  participant in the public employees retirement fund or the 
 29.31  public employees police and fire fund, whichever applies, on the 
 29.32  basis of compensation received from public employment activities 
 29.33  other than those as a volunteer firefighter; 
 29.34     (16) pipefitters and associated trades personnel employed 
 29.35  by independent school district No. 625, St. Paul, with coverage 
 29.36  under a collective bargaining agreement by the pipefitters local 
 30.1   455 pension plan who were either first employed after May 1, 
 30.2   1997, or, if first employed before May 2, 1997, elected to be 
 30.3   excluded under Laws 1997, chapter 241, article 2, section 12; 
 30.4      (17) electrical workers, plumbers, carpenters, and 
 30.5   associated trades personnel employed by independent school 
 30.6   district No. 625, St. Paul, or the city of St. Paul, who have 
 30.7   retirement coverage under a collective bargaining agreement by 
 30.8   the electrical workers local 110 pension plan, the united 
 30.9   association plumbers local 34 pension plan, or the carpenters 
 30.10  local 87 pension plan who were either first employed after May 
 30.11  1, 2000, or, if first employed before May 2, 2000, elected to be 
 30.12  excluded under Laws 2000, chapter 461, article 7, section 5; 
 30.13     (18) bricklayers, allied craftworkers, cement masons, 
 30.14  glaziers, glassworkers, painters, allied tradesworkers, and 
 30.15  plasterers employed by the city of St. Paul or independent 
 30.16  school district No. 625, St. Paul, with coverage under a 
 30.17  collective bargaining agreement by the bricklayers and allied 
 30.18  craftworkers local 1 pension plan, the cement masons local 633 
 30.19  pension plan, the glaziers and glassworkers local L-1324 pension 
 30.20  plan, the painters and allied trades local 61 pension plan, or 
 30.21  the Twin Cities plasterers local 265 pension plan who were 
 30.22  either first employed after May 1, 2001, or if first employed 
 30.23  before May 2, 2001, elected to be excluded under Laws 2001, 
 30.24  First Special Session chapter 10, article 10, section 6; 
 30.25     (19) plumbers employed by the metropolitan airports 
 30.26  commission, with coverage under a collective bargaining 
 30.27  agreement by the plumbers local 34 pension plan, who either were 
 30.28  first employed after May 1, 2001, or if first employed before 
 30.29  May 2, 2001, elected to be excluded under Laws 2001, First 
 30.30  Special Session chapter 10, article 10, section 6; 
 30.31     (20) employees who are hired after June 30, 2002, to fill 
 30.32  seasonal positions under subdivision 12b which are limited in 
 30.33  duration by the employer to 185 consecutive calendar days or 
 30.34  less in each business year of the governmental subdivision; 
 30.35     (21) persons who are provided supported employment or 
 30.36  work-study positions by a governmental subdivision and who 
 31.1   participate in an employment or industries program maintained 
 31.2   for the benefit of these persons where the governmental 
 31.3   subdivision limits the position's duration to three years or 
 31.4   less, including persons participating in a federal or state 
 31.5   subsidized on-the-job training, work experience, senior citizen, 
 31.6   youth, or unemployment relief program where the training or work 
 31.7   experience is not provided as a part of, or for, future 
 31.8   permanent public employment; 
 31.9      (22) independent contractors and the employees of 
 31.10  independent contractors; and 
 31.11     (23) reemployed annuitants of the association during the 
 31.12  course of that reemployment. 
 31.13     Sec. 3.  Minnesota Statutes 2001 Supplement, section 
 31.14  353.01, subdivision 11b, is amended to read: 
 31.15     Subd. 11b.  [TERMINATION OF MEMBERSHIP.] (a) "Termination 
 31.16  of membership" means the conclusion of membership in the 
 31.17  association and occurs: 
 31.18     (1) upon termination of public service under subdivision 
 31.19  11a; 
 31.20     (2) when a member does not return to work within 30 days of 
 31.21  the expiration of an authorized temporary layoff under 
 31.22  subdivision 12 or an authorized leave of absence under 
 31.23  subdivision 31 as evidenced by the appropriate record filed by 
 31.24  the governmental subdivision; or 
 31.25     (3) when a person files a written election to discontinue 
 31.26  employee deductions under section 353.27, subdivision 7, 
 31.27  paragraph (a), clause (1). 
 31.28     (b) The termination of membership must be reported to the 
 31.29  association by the governmental subdivision. 
 31.30     (c) If the employee subsequently returns to a position in 
 31.31  the same governmental subdivision, the employee shall not again 
 31.32  be required to earn a salary in excess of $425 per month to 
 31.33  qualify for membership, unless the employee has taken a refund 
 31.34  of accumulated employee deduction plus interest under section 
 31.35  353.34, subdivision 1. 
 31.36     Sec. 4.  Minnesota Statutes 2001 Supplement, section 
 32.1   353.01, subdivision 16, is amended to read: 
 32.2      Subd. 16.  [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a) 
 32.3   "Allowable service" means: 
 32.4      (1) service during years of actual membership in the course 
 32.5   of which employee contributions were made, periods covered by 
 32.6   payments in lieu of salary deductions under section 353.35; 
 32.7      (2) service in years during which the public employee was 
 32.8   not a member but for which the member later elected, while a 
 32.9   member, to obtain credit by making payments to the fund as 
 32.10  permitted by any law then in effect; 
 32.11     (3) a period of authorized leave of absence with pay from 
 32.12  which deductions for employee contributions are made, deposited, 
 32.13  and credited to the fund; 
 32.14     (4) a period of authorized personal, parental, or medical 
 32.15  leave of absence without pay, including a leave of absence 
 32.16  covered under the federal Family Medical Leave Act, that does 
 32.17  not exceed one year, and during or for which a member obtained 
 32.18  full or fractional service credit for each month in the leave 
 32.19  period by payments to the fund made in place of salary 
 32.20  deductions.  The payments must be made in an amount or amounts 
 32.21  based on the member's average salary on which deductions were 
 32.22  paid for the last six months of public service, or for that 
 32.23  portion of the last six months while the member was in public 
 32.24  service, to apply to the period in either case that immediately 
 32.25  precedes the commencement of the leave of absence.  If the 
 32.26  employee elects to pay the employee contributions for the period 
 32.27  of any authorized personal, parental, or medical leave of 
 32.28  absence without pay, or for any portion of the leave, the 
 32.29  employee shall also, as a condition to the exercise of the 
 32.30  election, pay to the fund an amount equivalent to the required 
 32.31  employer and the additional employer contributions, if any, for 
 32.32  the employee.  The payment must be made within one year from the 
 32.33  expiration of the leave of absence or within 20 days after 
 32.34  termination of public service under subdivision 11a, whichever 
 32.35  is earlier.  The employer, if by appropriate action of its 
 32.36  governing body, which is made a part of its official records, 
 33.1   and which is adopted before the date of the first payment of the 
 33.2   employee contribution, may certify to the association in writing 
 33.3   its commitment to pay the employer and additional employer 
 33.4   contributions from the proceeds of a tax levy made under section 
 33.5   353.28.  Payments under this paragraph must include interest at 
 33.6   an annual rate of 8.5 percent compounded annually from the date 
 33.7   of the termination of the leave of absence to the date payment 
 33.8   is made.  An employee shall return to public service and render 
 33.9   a minimum of three months of allowable service in order to be 
 33.10  eligible to pay employee and employer contributions for a 
 33.11  subsequent authorized leave of absence without pay.  Upon 
 33.12  payment, the employee must be granted allowable service credit 
 33.13  for full calendar months or fractions of a month during the 
 33.14  leave purchased period as described in paragraph (d), clauses (1)
 33.15  and (2), based on the salary or the compensated hours used in 
 33.16  computing the payment amount; 
 33.17     (5) a periodic, repetitive leave that is offered to all 
 33.18  employees of a governmental subdivision.  The leave program may 
 33.19  not exceed 208 hours per annual normal work cycle as certified 
 33.20  to the association by the employer.  A participating member 
 33.21  obtains service credit by making employee contributions in an 
 33.22  amount or amounts based on the member's average salary that 
 33.23  would have been paid if the leave had not been taken.  The 
 33.24  employer shall pay the employer and additional employer 
 33.25  contributions on behalf of the participating member.  The 
 33.26  employee and the employer are responsible to pay interest on 
 33.27  their respective shares at the rate of 8.5 percent a year, 
 33.28  compounded annually, from the end of the normal cycle until full 
 33.29  payment is made.  An employer shall also make the employer and 
 33.30  additional employer contributions, plus 8.5 percent interest, 
 33.31  compounded annually, on behalf of an employee who makes employee 
 33.32  contributions but terminates public service.  The employee 
 33.33  contributions must be made within one year after the end of the 
 33.34  annual normal working cycle or within 20 days after termination 
 33.35  of public service, whichever is sooner.  The association shall 
 33.36  prescribe the manner and forms to be used by a governmental 
 34.1   subdivision in administering a periodic, repetitive leave.  Upon 
 34.2   payment, the member must be granted allowable service credit for 
 34.3   full calendar months or fractions of a month during the leave 
 34.4   purchased period as described in paragraph (d), clauses (1) and 
 34.5   (2), based on the salary or the compensated hours used in 
 34.6   computing the payment amount; 
 34.7      (6) an authorized temporary layoff under subdivision 12.  
 34.8   For temporary layoffs that begin before January 1, 2002, 
 34.9   allowable service credit is, limited to three months allowable 
 34.10  service per authorized temporary layoff in one calendar year.  
 34.11  For temporary layoffs that begin on or after January 1, 2002, 
 34.12  allowable service credit for the calendar month in which the 
 34.13  member does not receive salary due to the layoff must be 
 34.14  determined using the following formula: 
 34.15     (i) members who earned one month of allowable service 
 34.16  credit for each of the nine calendar months of compensated 
 34.17  employment with the governmental subdivision authorizing the 
 34.18  layoff that immediately preceded the layoff shall receive one 
 34.19  month of allowable service credit, limited to three months of 
 34.20  allowable service credit per year, for each month of the 
 34.21  temporary layoff; or 
 34.22     (ii) members who earned less than nine months of allowable 
 34.23  service credit in the year of compensated employment with the 
 34.24  governmental subdivision authorizing the layoff that immediately 
 34.25  preceded the layoff shall receive allowable service credit on a 
 34.26  fractional basis for each month of the authorized layoff, 
 34.27  limited to three months of allowable service credit, determined 
 34.28  by dividing the total number of months of service credit earned 
 34.29  for the compensated employment by nine and multiplying the 
 34.30  resulting number by the total number of months in the layoff 
 34.31  period that are not compensated An employee who has received the 
 34.32  maximum service allowed for an authorized temporary layoff shall 
 34.33  return to public service and receive a minimum of three months 
 34.34  of allowable service to receive allowable service for a 
 34.35  subsequent authorized temporary layoff; or 
 34.36     (7) a period during which a member is on an authorized 
 35.1   leave of absence to enter military service in the armed forces 
 35.2   of the United States, provided that the member returns to public 
 35.3   service upon discharge from military service under section 
 35.4   192.262 and pays into the fund employee contributions based upon 
 35.5   the employee's salary at the date of return from military 
 35.6   service.  Payment must be made within three times the length of 
 35.7   the military leave period, or five years of the date of 
 35.8   discharge from the military service, whichever is less.  Payment 
 35.9   cannot be accepted following 20 days after termination of public 
 35.10  service under subdivision 11a.  The amount of these 
 35.11  contributions must be in accord with the contribution rates and 
 35.12  salary limitations, if any, in effect during the leave, plus 
 35.13  interest at an annual rate of 8.5 percent compounded annually 
 35.14  from the date of return to public service to the date payment is 
 35.15  made.  The matching corresponding employer contribution, and 
 35.16  additional employer contribution under section 353.27, 
 35.17  subdivisions 3 and 3a, if applicable, must be paid by the 
 35.18  governmental subdivision employing the member upon return to 
 35.19  public service if the member makes the employee contributions.  
 35.20  The governmental subdivision involved may appropriate money for 
 35.21  those payments.  A member may not receive credit for a voluntary 
 35.22  extension of military service at the instance of the member 
 35.23  beyond the initial period of enlistment, induction, or call to 
 35.24  active duty.  Upon payment, the employee must be granted 
 35.25  allowable service credit for full calendar months or fractions 
 35.26  of a month during the leave purchased period as described in 
 35.27  paragraph (d), clauses (1) and (2), based on the salary or 
 35.28  compensated hours used in computing the payment amount. 
 35.29     (b) For calculating benefits under sections 353.30, 353.31, 
 35.30  353.32, and 353.33 for state officers and employees displaced by 
 35.31  the Community Corrections Act, chapter 401, and transferred into 
 35.32  county service under section 401.04, "allowable service" means 
 35.33  combined years of allowable service as defined in paragraph (a), 
 35.34  clauses (1) to (6), and section 352.01, subdivision 11.  
 35.35     (c) For a public employee who has prior service covered by 
 35.36  a local police or firefighters relief association that has 
 36.1   consolidated with the public employees retirement association or 
 36.2   to which section 353.665 applies, and who has elected the type 
 36.3   of benefit coverage provided by the public employees police and 
 36.4   fire fund either under section 353A.08 following the 
 36.5   consolidation or under section 353.665, subdivision 4, 
 36.6   "applicable service" is a period of service credited by the 
 36.7   local police or firefighters relief association as of the 
 36.8   effective date of the consolidation based on law and on bylaw 
 36.9   provisions governing the relief association on the date of the 
 36.10  initiation of the consolidation procedure. 
 36.11     (d) For persons who, after January 1, 2002, either first 
 36.12  become members or terminated membership under subdivision 11b, 
 36.13  and again become members, of the public employees retirement 
 36.14  plan, the public employees police and fire plan under this 
 36.15  chapter, or the local government correctional employee 
 36.16  retirement plan under chapter 353E, whichever applies, 
 36.17  "allowable service" means credit for compensated hours from 
 36.18  which deductions are made, or for which payments are made in 
 36.19  lieu of salary deductions as provided under this subdivision, 
 36.20  and which are deposited and credited in the fund as provided in 
 36.21  section 353.27, determined as follows: 
 36.22     (1) one month of allowable service credit for each month 
 36.23  during which the employee has received salary for 80 or more 
 36.24  compensated hours; or 
 36.25     (2) a fraction of one month of allowable service for each 
 36.26  month for which the employee has received salary for less than 
 36.27  80 compensated hours equal to the percentage relationship that 
 36.28  the number of compensated hours bear to 80 hours. 
 36.29     (e) Elected officials and other public employees who are 
 36.30  compensated solely on an annual basis shall be granted a full 
 36.31  year of credit for each year for which compensation is earned. 
 36.32     (f) Allowable service that is determined and credited on a 
 36.33  fractional basis must be used only in calculating the amount of 
 36.34  benefits payable.  In determining the length of service required 
 36.35  for vesting, a member shall be granted a month of service credit 
 36.36  for each month in which the member received compensation from 
 37.1   which employee contributions were deducted.  For periods of 
 37.2   part-time service that are duplicated service credit, section 
 37.3   356.30, subdivision 1, paragraphs (g) and (h), govern. 
 37.4      (g) No member shall receive more than 12 months of 
 37.5   allowable service credit in a year either for vesting purposes 
 37.6   or for benefit calculation purposes. 
 37.7      (h) (e) "Allowable service" also means a period purchased 
 37.8   under section 356.555. 
 37.9      Sec. 5.  Minnesota Statutes 2000, section 353.01, is 
 37.10  amended by adding a subdivision to read:  
 37.11     Subd. 40.  [REDUCED SALARY DURING PERIOD OF WORKERS' 
 37.12  COMPENSATION.] (a) A member who is receiving temporary workers' 
 37.13  compensation payments related to the member's service to the 
 37.14  public employer and who either is receiving a reduced salary 
 37.15  from the employer or is receiving no salary from the employer is 
 37.16  entitled to receive allowable service credit for the period of 
 37.17  time that the member is receiving the workers' compensation 
 37.18  payments upon making the payments specified in this subdivision. 
 37.19     (b) The differential salary amount is the difference 
 37.20  between the salary received, if any, during the period of time 
 37.21  that the member is collecting temporary workers' compensation 
 37.22  payments, and the member's average salary on which contributions 
 37.23  were made for the last six months of covered employment 
 37.24  immediately before collecting the workers' compensation payments.
 37.25     (c) To receive eligible service credit, the member shall 
 37.26  pay an amount equal to the applicable employee contribution rate 
 37.27  under section 353.27, subdivision 2; 353.65, subdivision 2; or 
 37.28  353E.03, subdivision 1, as applicable, multiplied by the 
 37.29  differential salary amount; plus an employer equivalent payment 
 37.30  equal to the applicable employer contribution rate in section 
 37.31  353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, 
 37.32  subdivision 2, as applicable, multiplied by the differential 
 37.33  salary amount; plus, if applicable, an equivalent employer 
 37.34  additional amount equal to the additional employer contribution 
 37.35  rate in section 353.27, subdivision 3a, multiplied by the 
 37.36  differential salary amount. 
 38.1      (d) The employer may, by appropriate action of its 
 38.2   governing body and specified in its official records, pay the 
 38.3   employer equivalent contributions and, as applicable, the 
 38.4   equivalent employer additional contributions on behalf of the 
 38.5   member. 
 38.6      (e) Payment under this subdivision must include interest at 
 38.7   an 8.5 percent annual rate prorated for applicable months from 
 38.8   the date the temporary workers' compensation payments terminate 
 38.9   to the date the payment or payments are received by the 
 38.10  executive director.  Payment under this subdivision must be 
 38.11  completed within one year of the termination of the workers' 
 38.12  compensation payments to the member, or within 20 days after 
 38.13  termination of public service under subdivision 11a, whichever 
 38.14  is earlier. 
 38.15     Sec. 6.  Minnesota Statutes 2001 Supplement, section 
 38.16  353.27, subdivision 4, is amended to read: 
 38.17     Subd. 4.  [EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS; 
 38.18  MEMBER STATUS.] (a) A representative authorized by the head of 
 38.19  each department shall deduct employee contributions from the 
 38.20  salary of each employee who qualifies for membership under this 
 38.21  chapter and remit payment in a manner prescribed by the 
 38.22  executive director for the aggregate amount of the employee 
 38.23  contributions, the employer contributions and the additional 
 38.24  employer contributions to be received within 14 calendar days.  
 38.25  The head of each department or the person's designee shall for 
 38.26  each pay period submit to the association a salary deduction 
 38.27  report in the format prescribed by the executive director.  Data 
 38.28  to be submitted as part of salary deduction reporting must 
 38.29  include, but are not limited to:  
 38.30     (1) the legal names and social security numbers of 
 38.31  employees who are members; 
 38.32     (2) the amount of each employee's salary deduction; 
 38.33     (3) the amount of salary from which each deduction was 
 38.34  made; 
 38.35     (4) the beginning and ending dates of the payroll period 
 38.36  covered and the date of actual payment; and 
 39.1      (5) adjustments or corrections covering past pay periods; 
 39.2   and 
 39.3      (6) the number of compensated hours of each employee during 
 39.4   the payroll period.  
 39.5      (b) Employers must furnish the data required for enrollment 
 39.6   for each new employee who qualifies for membership in the format 
 39.7   prescribed by the executive director.  The required enrollment 
 39.8   data on new employees must be submitted to the association prior 
 39.9   to or concurrent with the submission of the initial employee 
 39.10  salary deduction.  The employer shall also report to the 
 39.11  association all member employment status changes, such as leaves 
 39.12  of absence, terminations, and death, and the effective dates of 
 39.13  those changes, on an ongoing basis for the payroll cycle in 
 39.14  which they occur.  The employer shall furnish data, forms, and 
 39.15  reports as may be required by the executive director for proper 
 39.16  administration of the retirement system.  Before implementing 
 39.17  new or different computerized reporting requirements, the 
 39.18  executive director shall give appropriate advance notice to 
 39.19  governmental subdivisions to allow time for system modifications.
 39.20     (c) Notwithstanding paragraph (a), the association may 
 39.21  provide for less frequent reporting and payments for small 
 39.22  employers. 
 39.23     Sec. 7.  Minnesota Statutes 2001 Supplement, section 
 39.24  353.27, subdivision 11, is amended to read: 
 39.25     Subd. 11.  [EMPLOYERS; REQUIRED TO FURNISH REQUESTED 
 39.26  INFORMATION.] All governmental subdivisions shall furnish 
 39.27  promptly such other information relative to the employment 
 39.28  status of all employees or former employees, including but not 
 39.29  limited to payroll abstracts pertaining to all past and present 
 39.30  employees, as may be requested by the association or its 
 39.31  executive director, including schedules of salaries applicable 
 39.32  to various categories of employment, and the number of actual or 
 39.33  estimated compensated hours for employees.  In the event payroll 
 39.34  abstract records have been lost or destroyed, for whatever 
 39.35  reason or in whatever manner, so that such schedules of salaries 
 39.36  cannot be furnished therefrom, the employing governmental 
 40.1   subdivision, in lieu thereof, shall furnish to the association 
 40.2   an estimate of the earnings of any employee or former employee 
 40.3   for any period as may be requested by the association or its 
 40.4   executive director. Should the association receive such 
 40.5   schedules of estimated earnings, the executive director is 
 40.6   hereby authorized to use the same as a basis for making whatever 
 40.7   computations might be necessary for determining obligations of 
 40.8   the employee and employer to the retirement fund.  If estimates 
 40.9   are not furnished by the employer pursuant to the request of the 
 40.10  association or its executive director, the association may 
 40.11  estimate the obligations of the employee and employer to the 
 40.12  retirement fund based upon such records as are in its 
 40.13  possession.  Where payroll abstracts have been lost or 
 40.14  destroyed, the governmental agency need not furnish any 
 40.15  information pertaining to employment prior to July 1, 1963.  The 
 40.16  association shall make no estimate of any obligation of any 
 40.17  employee, former employee, or employer covering employment prior 
 40.18  to July 1, 1963. 
 40.19     Sec. 8.  [REPEALER.] 
 40.20     Minnesota Statutes 2001 Supplement, section 353.01, 
 40.21  subdivision 39, is repealed. 
 40.22     Sec. 9.  [EFFECTIVE DATE.] 
 40.23     (a) Except as provided in paragraph (b), sections 1 to 4 
 40.24  and 6 to 8 are effective retroactively from January 1, 2002. 
 40.25     (b) The amendment to Minnesota Statutes, section 353.01, 
 40.26  subdivision 2b, clause (12), in section 1, is effective on the 
 40.27  day after the date on which the governing body of Hennepin 
 40.28  county and the chief clerical officer of the county complete in 
 40.29  a timely manner their compliance with Minnesota Statutes, 
 40.30  section 645.021, subdivisions 2 and 3. 
 40.31     (c) Section 5 is effective on the day following final 
 40.32  enactment. 
 40.33                             ARTICLE 3 
 40.34                 PERA LOCAL GOVERNMENT CORRECTIONAL 
 40.35                   RETIREMENT PLAN MODIFICATIONS 
 40.36     Section 1.  Minnesota Statutes 2000, section 353E.02, 
 41.1   subdivision 1, is amended to read: 
 41.2      Subdivision 1.  [RETIREMENT COVERAGE.] Local government 
 41.3   correctional service employees are The members of the local 
 41.4   government correctional service retirement plan established by 
 41.5   this chapter are: 
 41.6      (1) local government correctional service employees as 
 41.7   defined in subdivision 2; and 
 41.8      (2) medical center protection officers as defined in 
 41.9   subdivision 2a. 
 41.10     Sec. 2.  Minnesota Statutes 2000, section 353E.02, is 
 41.11  amended by adding a subdivision to read: 
 41.12     Subd. 2a.  [MEDICAL CENTER PROTECTION OFFICER.] (a) A 
 41.13  medical center protection officer, for purposes of subdivision 
 41.14  1, is a person whom the employer certifies: 
 41.15     (1) is employed by the Hennepin county medical center as a 
 41.16  protection officer; 
 41.17     (2) is directly responsible for the direct security of the 
 41.18  medical center; 
 41.19     (3) is expected to respond to any incidents within the 
 41.20  medical center as part of the person's regular employment duties 
 41.21  and is trained to do so; and 
 41.22     (4) is a "public employee" as defined in section 353.01, 
 41.23  but is not a member of the public employees police and fire plan.
 41.24     (b) The certification required under paragraph (a) must be 
 41.25  made in writing on a form prescribed by the executive director 
 41.26  of the public employees retirement association. 
 41.27     Sec. 3.  Minnesota Statutes 2000, section 353E.03, is 
 41.28  amended to read: 
 41.29     353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.] 
 41.30     Subdivision 1.  [MEMBER CONTRIBUTIONS.] A member of the 
 41.31  local government correctional service employee retirement plan 
 41.32  shall make an employee contribution in an amount equal to 6.01 
 41.33  percent of salary. 
 41.34     Subd. 2.  [EMPLOYER CONTRIBUTIONS.] The employer shall 
 41.35  contribute for a member of the local government correctional 
 41.36  service employee retirement plan an amount equal to 9.02 percent 
 42.1   of salary. 
 42.2      Sec. 4.  Laws 2000, chapter 461, article 10, section 3, as 
 42.3   amended by Laws 2001, First Special Session chapter 10, article 
 42.4   3, section 28, is amended to read: 
 42.5      Sec. 3.  [EFFECTIVE DATE.] 
 42.6      Section 1 is effective on the day following final enactment.
 42.7   Section 2 is effective on the first day of the first full pay 
 42.8   period beginning after January 1, 2003. 
 42.9      Sec. 5.  [REPEALER.] 
 42.10     Laws 2000, chapter 461, article 10, section 2, is repealed. 
 42.11     Sec. 6.  [EFFECTIVE DATE.] 
 42.12     (a) Sections 1, 2, and 3 are effective on July 1, 2002. 
 42.13     (b) Section 4 is effective on the day following final 
 42.14  enactment. 
 42.15     (c) Section 5 is effective on August 1, 2002. 
 42.16                             ARTICLE 4 
 42.17                        PENSION COVERAGE FOR 
 42.18                    PRIVATIZED PUBLIC HOSPITALS 
 42.19     Section 1.  Minnesota Statutes 2000, section 353F.02, 
 42.20  subdivision 4, is amended to read: 
 42.21     Subd. 4.  [MEDICAL FACILITY.] "Medical facility" means: 
 42.22     (1) the Glencoe area health center; 
 42.23     (2) the Luverne public hospital; and 
 42.24     (3) the Waconia-Ridgeview medical center.; and 
 42.25     (4) the Kanabec hospital. 
 42.26     Sec. 2.  [EFFECTIVE DATE.] 
 42.27     Section 1 is effective upon the latter of: 
 42.28     (1) the day after the governing body of Kanabec county and 
 42.29  its chief clerical officer timely complete their compliance with 
 42.30  Minnesota Statutes, section 645.021, subdivisions 2 and 3; and 
 42.31     (2) the first day of the month next following certification 
 42.32  by the executive director of the public employees retirement 
 42.33  association that the actuarial accrued liability of the special 
 42.34  benefit coverage proposed for extension to the privatized 
 42.35  Kanabec hospital employees under section 1 does not exceed the 
 42.36  actuarial gain otherwise to be accrued by the public employees 
 43.1   retirement association, as calculated by the consulting actuary 
 43.2   retained by the legislative commission on pensions and 
 43.3   retirement.  The cost of the actuarial calculations must be 
 43.4   borne by the Kanabec hospital. 
 43.5                              ARTICLE 5 
 43.6                         CLOSED CHARTER SCHOOL 
 43.7                    UNPAID RETIREMENT CONTRIBUTIONS 
 43.8      Section 1.  Minnesota Statutes 2001 Supplement, section 
 43.9   354.05, subdivision 2, is amended to read: 
 43.10     Subd. 2.  [TEACHER.] (a) "Teacher" means: 
 43.11     (1) a person who renders service as a teacher, supervisor, 
 43.12  principal, superintendent, librarian, nurse, counselor, social 
 43.13  worker, therapist, or psychologist in the a public schools 
 43.14  school of the state located outside of the corporate limits of 
 43.15  the cities a city of the first class, or in any charter school, 
 43.16  irrespective of the location of the school, or in any 
 43.17  charitable, penal, or correctional institutions of a 
 43.18  governmental subdivision, or who is engaged in educational 
 43.19  administration in connection with the state public school 
 43.20  system, but excluding the University of Minnesota, whether the 
 43.21  position be a public office or an employment, not including 
 43.22  members or officers of any general governing or managing board 
 43.23  or body; 
 43.24     (2) an employee of the teachers retirement association; 
 43.25     (3) a person who renders teaching service on a part-time 
 43.26  basis and who also renders other services for a single employing 
 43.27  unit.  A person whose teaching service comprises at least 50 
 43.28  percent of the combined employment salary is a member of the 
 43.29  association for all services with the single employing unit.  If 
 43.30  the person's teaching service comprises less than 50 percent of 
 43.31  the combined employment salary, the executive director must 
 43.32  determine whether all or none of the combined service is covered 
 43.33  by the association; or 
 43.34     (4) a person who is not covered by the plans established 
 43.35  under chapter 352D, 354A, or 354B and who is employed by the 
 43.36  board of trustees of the Minnesota state colleges and 
 44.1   universities system in an unclassified position as: 
 44.2      (i) a president, vice-president, or dean; 
 44.3      (ii) a manager or a professional in an academic or an 
 44.4   academic support program other than specified in item (i); 
 44.5      (iii) an administrative or a service support faculty 
 44.6   position; or 
 44.7      (iv) a teacher or a research assistant. 
 44.8      (b) Teacher "Teacher" does not mean: 
 44.9      (1) a person who works for a school or institution as an 
 44.10  independent contractor as defined by the Internal Revenue 
 44.11  Service; 
 44.12     (2) a person employed in subsidized on-the-job training, 
 44.13  work experience or public service employment as an enrollee 
 44.14  under the federal Comprehensive Employment and Training Act from 
 44.15  and after March 30, 1978, unless the person has, as of the later 
 44.16  of March 30, 1978, or the date of employment, sufficient service 
 44.17  credit in the retirement association to meet the minimum vesting 
 44.18  requirements for a deferred retirement annuity, or the employer 
 44.19  agrees in writing on forms prescribed by the executive director 
 44.20  to make the required employer contributions, including any 
 44.21  employer additional contributions, on account of that person 
 44.22  from revenue sources other than funds provided under the federal 
 44.23  Comprehensive Training and Employment Act, or the person agrees 
 44.24  in writing on forms prescribed by the executive director to make 
 44.25  the required employer contribution in addition to the required 
 44.26  employee contribution; 
 44.27     (3) a person holding a part-time adult supplementary 
 44.28  technical college license who renders part-time teaching service 
 44.29  or a customized trainer as defined by the Minnesota state 
 44.30  colleges and universities system in a technical college if (i) 
 44.31  the service is incidental to the regular nonteaching occupation 
 44.32  of the person; and (ii) the applicable technical college 
 44.33  stipulates annually in advance that the part-time teaching 
 44.34  service or customized training service will not exceed 300 hours 
 44.35  in a fiscal year and retains the stipulation in its records; and 
 44.36  (iii) the part-time teaching service or customized training 
 45.1   service actually does not exceed 300 hours in a fiscal year; or 
 45.2      (4) a person exempt from licensure under section 122A.30. 
 45.3      Sec. 2.  Minnesota Statutes 2000, section 354A.011, 
 45.4   subdivision 27, is amended to read: 
 45.5      Subd. 27.  [TEACHER.] (a) "Teacher" means any person who 
 45.6   renders service in for a public school district, other than a 
 45.7   charter school, located in the corporate limits of one of the 
 45.8   cities of the first class which was so classified on January 1, 
 45.9   1979, as any of the following: 
 45.10     (a) (1) a full-time employee in a position for which a 
 45.11  valid license from the state department of children, families, 
 45.12  and learning is required; 
 45.13     (b) (2) an employee of the teachers retirement fund 
 45.14  association located in the city of the first class unless the 
 45.15  employee has exercised the option pursuant to Laws 1955, chapter 
 45.16  10, section 1, to retain membership in the Minneapolis employees 
 45.17  retirement fund established pursuant to chapter 422A; 
 45.18     (c) (3) a part-time employee in a position for which a 
 45.19  valid license from the state department of children, families, 
 45.20  and learning is required; or 
 45.21     (d) (4) a part-time employee in a position for which a 
 45.22  valid license from the state department of children, families, 
 45.23  and learning is required who also renders other nonteaching 
 45.24  services for the school district, unless the board of trustees 
 45.25  of the teachers retirement fund association determines that the 
 45.26  combined employment is on the whole so substantially dissimilar 
 45.27  to teaching service that the service shall may not be covered by 
 45.28  the association. 
 45.29     (b) The term shall does not mean any person who renders 
 45.30  service in the school district as any of the following: 
 45.31     (1) an independent contractor or the employee of an 
 45.32  independent contractor; 
 45.33     (2) an employee who is a full-time teacher covered by the 
 45.34  teachers retirement association or by another teachers 
 45.35  retirement fund association established pursuant to this chapter 
 45.36  or chapter 354; 
 46.1      (3) an employee exempt from licensure pursuant to section 
 46.2   122A.30; 
 46.3      (4) an employee who is a teacher in a technical college 
 46.4   located in a city of the first class unless the person elects 
 46.5   coverage by the applicable first class city teacher retirement 
 46.6   fund association under section 354B.21, subdivision 2; or 
 46.7      (5) a teacher employed by a charter school, irrespective of 
 46.8   the location of the school; or 
 46.9      (6) an employee who is a part-time teacher in a technical 
 46.10  college in a city of the first class and who has elected 
 46.11  coverage by the applicable first class city teacher retirement 
 46.12  fund association under section 354B.21, subdivision 2, but (i) 
 46.13  the teaching service is incidental to the regular nonteaching 
 46.14  occupation of the person; (ii) the applicable technical college 
 46.15  stipulates annually in advance that the part-time teaching 
 46.16  service will not exceed 300 hours in a fiscal year; and (iii) 
 46.17  the part-time teaching actually does not exceed 300 hours in the 
 46.18  fiscal year to which the certification applies.  
 46.19     Sec. 3.  Minnesota Statutes 2000, section 354A.12, 
 46.20  subdivision 3d, is amended to read: 
 46.21     Subd. 3d.  [SUPPLEMENTAL ADMINISTRATIVE EXPENSE 
 46.22  ASSESSMENT.] (a) The active and retired membership of the 
 46.23  Minneapolis teachers retirement fund association and of the St. 
 46.24  Paul teachers retirement fund association is responsible for 
 46.25  defraying supplemental administrative expenses other than 
 46.26  investment expenses of the respective teacher retirement fund 
 46.27  association. 
 46.28     (b) Investment expenses of the teachers retirement fund 
 46.29  association are those expenses incurred by or on behalf of the 
 46.30  retirement fund in connection with the investment of the assets 
 46.31  of the retirement fund other than investment security 
 46.32  transaction costs.  Other administrative expenses are all 
 46.33  expenses incurred by or on behalf of the retirement fund for all 
 46.34  other retirement fund functions other than the investment of 
 46.35  retirement fund assets.  Investment and other administrative 
 46.36  expenses must be accounted for using generally accepted 
 47.1   accounting principles and in a manner consistent with the 
 47.2   comprehensive annual financial report of the teachers retirement 
 47.3   fund association for the immediately previous fiscal year under 
 47.4   section 356.20. 
 47.5      (c) Supplemental administrative expenses other than 
 47.6   investment expenses of a first class city teacher retirement 
 47.7   fund association are those expenses for the fiscal year that: 
 47.8      (1) exceed, for the St. Paul teachers retirement fund 
 47.9   association $443,745, or for the Minneapolis teacher retirement 
 47.10  fund association $671,513, plus, in each case, an additional 
 47.11  amount derived by applying the percentage increase in the 
 47.12  consumer price index for urban wage earners and clerical workers 
 47.13  all items index published by the Bureau of Labor Statistics of 
 47.14  the United States Department of Labor since July 1, 2001, to the 
 47.15  applicable dollar amount; and 
 47.16     (2) exceed the amount computed by applying the most recent 
 47.17  percentage of pay administrative expense amount, other than 
 47.18  investment expenses, for the teachers retirement association 
 47.19  governed by chapter 354 to the covered payroll of the respective 
 47.20  teachers retirement fund association for the fiscal year. 
 47.21     (d) The board of trustees of each first class city teachers 
 47.22  retirement fund association shall allocate the total dollar 
 47.23  amount of supplemental administrative expenses other than 
 47.24  investment expenses determined under paragraph (c), clause (2), 
 47.25  among the various active and retired membership groups of the 
 47.26  teachers retirement fund association and shall assess the 
 47.27  various membership groups their respective share of the 
 47.28  supplemental administrative expenses other than investment 
 47.29  expenses, in amounts determined by the board of trustees.  The 
 47.30  supplemental administrative expense assessments must be paid by 
 47.31  the membership group in a manner determined by the board of 
 47.32  trustees of the respective teachers retirement association.  
 47.33  Supplemental administrative expenses payable by the active 
 47.34  members of the pension plan must be picked up by the employer in 
 47.35  accordance with section 356.62. 
 47.36     (e) With respect to the St. Paul teachers retirement fund 
 48.1   association, the supplemental administrative expense assessment 
 48.2   must be fully disclosed to the various active and retired 
 48.3   membership groups of the teachers retirement fund association.  
 48.4   The chief administrative officer of the St. Paul teachers 
 48.5   retirement fund association shall prepare a supplemental 
 48.6   administrative expense assessment disclosure notice, which must 
 48.7   include the following: 
 48.8      (1) the total amount of administrative expenses of the St. 
 48.9   Paul teachers retirement fund association, the amount of the 
 48.10  investment expenses of the St. Paul teachers retirement fund 
 48.11  association, and the net remaining amount of administrative 
 48.12  expenses of the St. Paul teachers retirement fund association; 
 48.13     (2) the amount of administrative expenses for the St. Paul 
 48.14  teachers retirement fund association that would be equivalent to 
 48.15  the teachers retirement association noninvestment administrative 
 48.16  expense level described in paragraph (c); 
 48.17     (3) the total amount of supplemental administrative 
 48.18  expenses required for assessment calculated under paragraph (c); 
 48.19     (4) the portion of the total amount of the supplemental 
 48.20  administrative expense assessment allocated to each membership 
 48.21  group and the rationale for that allocation; 
 48.22     (5) the manner of collecting the supplemental 
 48.23  administrative expense assessment from each membership group, 
 48.24  the number of assessment payments required during the year, and 
 48.25  the amount of each payment or the procedure used to determine 
 48.26  each payment; and 
 48.27     (6) any other information that the chief administrative 
 48.28  officer determines is necessary to fairly portray the manner in 
 48.29  which the supplemental administrative expense assessment was 
 48.30  determined and allocated. 
 48.31     (f) The disclosure notice must be provided annually in the 
 48.32  annual report of the association. 
 48.33     (g) The supplemental administrative expense assessments 
 48.34  must be deposited in the applicable teachers retirement fund 
 48.35  upon receipt. 
 48.36     (h) Any omitted active membership group assessments that 
 49.1   remain undeducted and unpaid to the teachers retirement fund 
 49.2   association for 90 days must be paid by the respective school 
 49.3   district.  The school district may recover any omitted active 
 49.4   membership group assessment amounts that it has previously 
 49.5   paid.  The teachers retirement fund association shall deduct any 
 49.6   omitted retired membership group assessment amounts from the 
 49.7   benefits next payable after the discovery of the omitted amounts.
 49.8      Sec. 4.  [STATE PAYMENT OF CERTAIN UNPAID CHARTER SCHOOL 
 49.9   RETIREMENT CONTRIBUTIONS.] 
 49.10     Subdivision 1.  [UNPAID CONTRIBUTIONS.] (a) The state of 
 49.11  Minnesota shall make any unpaid employee, employer, and employer 
 49.12  additional contributions to the applicable retirement 
 49.13  association for teaching or other service in a designated 
 49.14  charter school which closed before April 1, 2002, without having 
 49.15  paid the required contributions to the retirement association.  
 49.16     (b) By June 1, 2002, the chief administrative officer of 
 49.17  the retirement association shall certify to the commissioner of 
 49.18  children, families, and learning the amount of accrued 
 49.19  contributions, plus applicable interest, which were not paid by 
 49.20  each designated charter school before its closure.  On July 1, 
 49.21  2002, the commissioner of children, families, and learning shall 
 49.22  pay the amounts certified from the state total building lease 
 49.23  aid otherwise payable under Minnesota Statutes, section 124D.11, 
 49.24  subdivision 4a, to the affected retirement associations.  The 
 49.25  commissioner shall remit directly to the retirement association 
 49.26  the amounts certified under this section.  The applicable 
 49.27  retirement association shall credit employee contribution 
 49.28  payments to the applicable member accounts and shall credit to 
 49.29  the applicable members allowable and formula service and covered 
 49.30  salary for the period when the teaching or other service was 
 49.31  actually performed in the charter school.  State payments 
 49.32  representing unpaid employee contributions must be considered 
 49.33  accumulated employee or member deductions for purposes of 
 49.34  Minnesota Statutes, section 353.34; 354.49; or 354A.37. 
 49.35     Subd. 2.  [COVERED RETIREMENT ASSOCIATIONS.] This section 
 49.36  applies to the following public retirement associations 
 50.1   providing retirement coverage for employees in charter schools: 
 50.2      (1) the teachers retirement association; 
 50.3      (2) the Minneapolis teachers retirement fund association; 
 50.4      (3) the St. Paul teachers retirement fund association; 
 50.5      (4) the Duluth teachers retirement fund association; and 
 50.6      (5) the public employees retirement association. 
 50.7      Subd. 3.  [DESIGNATED CLOSED CHARTER SCHOOLS.] This section 
 50.8   applies to the Frederick Douglass charter school and any other 
 50.9   charter school that is determined by the commissioner of 
 50.10  children, families, and learning to have closed before April 1, 
 50.11  2002. 
 50.12     Sec. 5.  [CONTINUING RECOVERY AUTHORITY.] 
 50.13     Nothing in section 4 relieves the sponsor of a closed 
 50.14  charter school and the operator of a closed charter school from 
 50.15  any financial responsibility that those parties may have to pay 
 50.16  unpaid employee, employer, or employer additional contributions 
 50.17  to the applicable public retirement plans.  The commissioner of 
 50.18  revenue shall undertake all reasonable efforts to recover these 
 50.19  amounts.  Any recovered amounts must be deposited in the general 
 50.20  fund and are appropriated to the department of children, 
 50.21  families, and learning to offset the payment of unpaid 
 50.22  contributions under section 4.  
 50.23     Sec. 6.  [EFFECTIVE DATE.] 
 50.24     (a) Sections 1 and 2 are effective on July 1, 2002. 
 50.25     (b) Sections 4 and 5 are effective on the day following 
 50.26  final enactment. 
 50.27                             ARTICLE 6 
 50.28                      TEACHER RETIREMENT PLANS 
 50.29                       SERVICE CREDIT PURCHASE 
 50.30                         DEADLINE EXTENSION 
 50.31     Section 1.  Laws 1999, chapter 222, article 16, section 16, 
 50.32  is amended to read: 
 50.33     Sec. 16.  [REPEALER.] 
 50.34     Sections 1 to 13 are repealed on May 16, 2002 2003. 
 50.35     Sec. 2.  Laws 2000, chapter 461, article 12, section 20, is 
 50.36  amended to read: 
 51.1      Sec. 20.  [EFFECTIVE DATE.] 
 51.2      (a) Sections 4, 5, and 11 to 20 are effective on the day 
 51.3   following final enactment. 
 51.4      (b) Sections 1, 2, 3, and 6 to 10 are effective on the day 
 51.5   following final enactment and apply retroactively to a faculty 
 51.6   member of the Lake Superior College who was granted an extended 
 51.7   leave of absence under article 19, section 4, of the united 
 51.8   technical college educators master agreement for the 1999-2000 
 51.9   academic year prior to March 20, 2000. 
 51.10     (c) Sections 5, 11, and 14, paragraph (c), expire on May 
 51.11  16, 2002 2003. 
 51.12     Sec. 3.  Laws 2001, First Special Session chapter 10, 
 51.13  article 6, section 21, is amended to read: 
 51.14     Sec. 4.  [EXPIRATION DATE.] 
 51.15     (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17, 
 51.16  18, 19, and 20 expire May 16, 2003. 
 51.17     (b) Sections 9 and 15 expire May 16, 2002 2003. 
 51.18     Sec. 5.  [EFFECTIVE DATE.] 
 51.19     Sections 1 to 3 are effective on the day following final 
 51.20  enactment. 
 51.21                             ARTICLE 7 
 51.22                      RECODIFICATION OF SOCIAL 
 51.23                    SECURITY COVERAGE PROVISIONS 
 51.24     Section 1.  Minnesota Statutes 2000, section 355.01, 
 51.25  subdivision 1, is amended to read: 
 51.26     Subdivision 1.  [IN GENERAL.] For the purposes of this 
 51.27  chapter, as amended, each of the terms defined in this section 
 51.28  have has the meanings meaning ascribed to them herein.  
 51.29     Sec. 2.  Minnesota Statutes 2000, section 355.01, is 
 51.30  amended by adding a subdivision to read: 
 51.31     Subd. 2a.  [CONSTITUTIONAL OFFICER.] "Constitutional 
 51.32  officer" means the governor, lieutenant governor, attorney 
 51.33  general, secretary of state, state auditor, and state treasurer 
 51.34  who is duly elected and who was sworn into office. 
 51.35     Sec. 3.  Minnesota Statutes 2000, section 355.01, is 
 51.36  amended by adding a subdivision to read: 
 52.1      Subd. 2b.  [DULUTH TEACHER.] "Duluth teacher" means a 
 52.2   person employed by independent school district No. 709, Duluth, 
 52.3   who holds a position covered by the Duluth teachers retirement 
 52.4   fund association established under chapter 354A. 
 52.5      Sec. 4.  Minnesota Statutes 2000, section 355.01, is 
 52.6   amended by adding a subdivision to read: 
 52.7      Subd. 2c.  [EDUCATIONAL EMPLOYEE.] "Educational employee" 
 52.8   means an employee of the state of Minnesota or of a public 
 52.9   subdivision of the state who performs services in a position 
 52.10  covered by the teachers retirement association under chapter 354.
 52.11     Sec. 5.  Minnesota Statutes 2000, section 355.01, is 
 52.12  amended by adding a subdivision to read: 
 52.13     Subd. 2d.  [EMPLOYEE.] "Employee" means a person employed 
 52.14  by the state of Minnesota or by a political subdivision of the 
 52.15  state and includes an officer of the state of Minnesota or of a 
 52.16  political subdivision of the state. 
 52.17     Sec. 6.  Minnesota Statutes 2000, section 355.01, is 
 52.18  amended by adding a subdivision to read: 
 52.19     Subd. 2e.  [EMPLOYEE TAX.] "Employee tax" means the tax 
 52.20  imposed by section 3101 of the Internal Revenue Code of 1986. 
 52.21     Sec. 7.  Minnesota Statutes 2000, section 355.01, 
 52.22  subdivision 3, is amended to read: 
 52.23     Subd. 3.  [EMPLOYMENT.] The term (a) "Employment" means any 
 52.24  service performed by an employee in the employ of the state, or 
 52.25  any political subdivision thereof, for such that employer, 
 52.26  except: 
 52.27     (1) service which in the absence of an agreement entered 
 52.28  into under this chapter, as amended, would constitute 
 52.29  "employment" as defined in the Social Security act; or 
 52.30     (2) service which under the Social Security Act may is not 
 52.31  permitted to be included in an agreement between the state and 
 52.32  the federal Secretary of Health, Education, and Welfare Human 
 52.33  Services entered into under this chapter, as amended.  
 52.34     (b) Service which under the Social Security Act may is 
 52.35  permitted to be included in an agreement only upon certification 
 52.36  by the governor in accordance with section 218(d) (3) of that 
 53.1   act shall must be included in the term "employment" if and when 
 53.2   the governor issues, with respect to such that service, a the 
 53.3   appropriate federal certificate to the federal Secretary of 
 53.4   Health, Education, and Welfare Human Services.  
 53.5      Sec. 8.  Minnesota Statutes 2000, section 355.01, is 
 53.6   amended by adding a subdivision to read: 
 53.7      Subd. 3a.  [FEDERAL INSURANCE CONTRIBUTIONS ACT.] "Federal 
 53.8   Insurance Contributions Act" means subchapters A and B of 
 53.9   chapter 21 of the Internal Revenue Code of 1986, as amended 
 53.10  through December 31, 2000. 
 53.11     Sec. 9.  Minnesota Statutes 2000, section 355.01, is 
 53.12  amended by adding a subdivision to read: 
 53.13     Subd. 3b.  [GOVERNMENTAL EMPLOYER.] "Governmental employer" 
 53.14  means any political subdivision as defined in section 218 of the 
 53.15  Social Security Act.  The term includes a city, county, town, 
 53.16  hospital district, or other body, politic and corporate, located 
 53.17  in Minnesota. 
 53.18     Sec. 10.  Minnesota Statutes 2000, section 355.01, is 
 53.19  amended by adding a subdivision to read: 
 53.20     Subd. 3c.  [HIGHER EDUCATION EMPLOYEE.] "Higher education 
 53.21  employee" means an employee of the state of Minnesota who 
 53.22  performs services in a Minnesota state colleges and universities 
 53.23  system in a position covered by the individual retirement 
 53.24  account plan under section 354B.21 and who remains a member of 
 53.25  the teachers retirement association for purposes of social 
 53.26  security coverage only. 
 53.27     Sec. 11.  Minnesota Statutes 2000, section 355.01, is 
 53.28  amended by adding a subdivision to read: 
 53.29     Subd. 3d.  [HOSPITAL EMPLOYEE.] "Hospital employee" means 
 53.30  an officer or employee of a public hospital who performs 
 53.31  services in a position covered by the public employees 
 53.32  retirement association under chapter 353. 
 53.33     Sec. 12.  Minnesota Statutes 2000, section 355.01, is 
 53.34  amended by adding a subdivision to read: 
 53.35     Subd. 3e.  [JUDGE.] "Judge" means a judge as defined in 
 53.36  section 490.121, subdivision 3. 
 54.1      Sec. 13.  Minnesota Statutes 2000, section 355.01, is 
 54.2   amended by adding a subdivision to read: 
 54.3      Subd. 3f.  [LEGISLATOR.] "Legislator" means a member of the 
 54.4   legislature who is duly elected and who was sworn into office. 
 54.5      Sec. 14.  Minnesota Statutes 2000, section 355.01, is 
 54.6   amended by adding a subdivision to read: 
 54.7      Subd. 3g.  [LOCAL GOVERNMENTAL SUBDIVISION.] "Local 
 54.8   governmental subdivision" means: 
 54.9      (1) a political subdivision as defined in section 218(b) of 
 54.10  the Social Security Act; 
 54.11     (2) an instrumentality of the state; 
 54.12     (3) an instrumentality of one or more of the political 
 54.13  subdivisions of the state, including the league of Minnesota 
 54.14  cities; 
 54.15     (4) an instrumentality of the state and one or more of its 
 54.16  political subdivisions; 
 54.17     (5) a governmental subdivision as defined in section 
 54.18  353.01, subdivision 6; and 
 54.19     (6) any instrumentality established under a joint powers 
 54.20  agreement under section 471.59 wherein the instrumentality is 
 54.21  responsible for the employment and the payment of the salaries 
 54.22  of the employees of the instrumentality. 
 54.23     Sec. 15.  Minnesota Statutes 2000, section 355.01, is 
 54.24  amended by adding a subdivision to read: 
 54.25     Subd. 3h.  [MINNEAPOLIS TEACHER.] "Minneapolis teacher" 
 54.26  means a person employed by special school district No. 1, 
 54.27  Minneapolis, who holds a position covered by the Minneapolis 
 54.28  teachers retirement fund association established under chapter 
 54.29  354A. 
 54.30     Sec. 16.  Minnesota Statutes 2000, section 355.01, is 
 54.31  amended by adding a subdivision to read: 
 54.32     Subd. 3i.  [POLITICAL SUBDIVISION.] "Political subdivision" 
 54.33  means any political subdivision as defined in section 218(b) of 
 54.34  the Social Security Act, and includes any instrumentality of the 
 54.35  state, any instrumentality of one or more of its political 
 54.36  subdivisions, including the league of Minnesota municipalities, 
 55.1   any instrumentality of the state and one or more of its 
 55.2   political subdivisions, and an instrumentality established under 
 55.3   a joint powers agreement under section 471.59, wherein the 
 55.4   instrumentality is responsible for the employment and payment of 
 55.5   the salaries of employees of the instrumentality. 
 55.6      Sec. 17.  Minnesota Statutes 2000, section 355.01, is 
 55.7   amended by adding a subdivision to read: 
 55.8      Subd. 3j.  [PUBLIC EMPLOYEE.] "Public employee" means an 
 55.9   officer or an employee of a local governmental subdivision of 
 55.10  the state who performs services in a position covered by the 
 55.11  public employees retirement association established under 
 55.12  chapter 353. 
 55.13     Sec. 18.  Minnesota Statutes 2000, section 355.01, is 
 55.14  amended by adding a subdivision to read: 
 55.15     Subd. 3k.  [PUBLIC HOSPITAL.] "Public hospital" means a 
 55.16  hospital that is owned or operated by a governmental employer or 
 55.17  a combination of governmental employers, or a hospital that is 
 55.18  an integral part of a governmental employer or of a combination 
 55.19  of governmental employers. 
 55.20     Sec. 19.  Minnesota Statutes 2000, section 355.01, is 
 55.21  amended by adding a subdivision to read: 
 55.22     Subd. 3l.  [ST. PAUL TEACHER.] "St. Paul teacher" means a 
 55.23  person employed by independent school district No. 625, St. 
 55.24  Paul, who holds a position covered by the St. Paul teachers 
 55.25  retirement fund association established under chapter 354A. 
 55.26     Sec. 20.  Minnesota Statutes 2000, section 355.01, 
 55.27  subdivision 6, is amended to read: 
 55.28     Subd. 6.  [SECRETARY OF HEALTH AND HUMAN SERVICES.] The 
 55.29  term "Secretary of Health, Education, and Welfare Human Services"
 55.30  means the secretary of the federal Department of Health and 
 55.31  Human Services and includes any individual to whom the Secretary 
 55.32  of Health, Education, and Welfare Human Services has delegated 
 55.33  any functions under the Social Security Act with respect to 
 55.34  coverage under such act of employees of states and their 
 55.35  political subdivisions.  
 55.36     Sec. 21.  Minnesota Statutes 2000, section 355.01, 
 56.1   subdivision 8, is amended to read: 
 56.2      Subd. 8.  [SOCIAL SECURITY ACT.] The term "Social Security 
 56.3   Act" means the Act of Congress approved August 14, 1935, chapter 
 56.4   531, Statutes at Large, volume 49, page 620, officially cited as 
 56.5   the "Social Security Act," as such act has been and may from 
 56.6   time to time be amended (including the relevant regulations and 
 56.7   requirements issued pursuant thereto).  
 56.8      Sec. 22.  Minnesota Statutes 2000, section 355.01, is 
 56.9   amended by adding a subdivision to read: 
 56.10     Subd. 11.  [SPECIAL AUTHORITY OR DISTRICT.] "Special 
 56.11  authority or district" means a municipal housing and 
 56.12  redevelopment authority organized under sections 469.001 to 
 56.13  469.047, a soil and water conservation district organized under 
 56.14  chapter 103C, a port authority organized under sections 469.048 
 56.15  to 469.068, an economic development authority organized under 
 56.16  sections 469.090 to 469.108, or a hospital district organized or 
 56.17  reorganized under sections 447.31 to 447.37. 
 56.18     Sec. 23.  Minnesota Statutes 2000, section 355.01, is 
 56.19  amended by adding a subdivision to read: 
 56.20     Subd. 12.  [SPECIAL AUTHORITY OR DISTRICT 
 56.21  EMPLOYEE.] "Special authority or district employee" means an 
 56.22  employee, other than an elected official, of a municipal housing 
 56.23  and redevelopment authority organized under sections 469.001 to 
 56.24  469.047, of a soil and water conservation district organized 
 56.25  under chapter 103C, of a port authority organized under sections 
 56.26  469.048 to 469.068, of an economic development authority 
 56.27  organized under sections 469.090 to 469.108, or of a hospital 
 56.28  district organized or reorganized under sections 447.31 to 
 56.29  447.37. 
 56.30     Sec. 24.  Minnesota Statutes 2000, section 355.01, is 
 56.31  amended by adding a subdivision to read: 
 56.32     Subd. 13.  [STATE AGENCY.] "State agency" means the 
 56.33  commissioner of employee relations. 
 56.34     Sec. 25.  Minnesota Statutes 2000, section 355.01, is 
 56.35  amended by adding a subdivision to read: 
 56.36     Subd. 14.  [STATE EMPLOYEE.] "State employee" means an 
 57.1   employee of the state of Minnesota or of a political subdivision 
 57.2   who performs services in a position covered by the general state 
 57.3   employees retirement system of the Minnesota state retirement 
 57.4   system governed by chapter 352, except any position for which 
 57.5   the compensation is on a fee basis. 
 57.6      Sec. 26.  Minnesota Statutes 2000, section 355.01, is 
 57.7   amended by adding a subdivision to read: 
 57.8      Subd. 15.  [WAGES.] "Wages" means all remuneration for 
 57.9   employment, including the cash value of all remuneration paid in 
 57.10  any medium other than cash.  The term does not include that part 
 57.11  of the remuneration which, even if it were for employment within 
 57.12  the meaning of the Federal Insurance Contributions Act, would 
 57.13  not constitute wages within the meaning of that act. 
 57.14     Sec. 27.  Minnesota Statutes 2000, section 355.02, is 
 57.15  amended to read: 
 57.16     355.02 [AGREEMENTS.] 
 57.17     Subdivision 1.  [GENERAL AUTHORITY.] (a) The state agency, 
 57.18  with the approval of the governor, is hereby authorized to enter 
 57.19  into an agreement on behalf of the state with the federal 
 57.20  Secretary of Health, Education, and Welfare Human Services, 
 57.21  consistent with the terms and provisions of this chapter, as 
 57.22  amended, for the purpose of extending the benefits of the 
 57.23  federal old age and, survivors, and disability insurance system 
 57.24  to employees of the state or any political subdivision thereof 
 57.25  with respect to services specified in such the agreement which 
 57.26  constitute "employment," whenever so specifically authorized by 
 57.27  the statutory provisions of this state pertaining to any 
 57.28  coverage group of such employees to which the agreement may 
 57.29  become applicable under the Social Security Act.  
 57.30     Pursuant to such (b) Under this specific authorization the 
 57.31  agreement may contain such those provisions relating to 
 57.32  coverage, benefits, contributions, effective date, modification 
 57.33  and termination of the agreement, administration, and other 
 57.34  appropriate provisions as the state agency and the federal 
 57.35  Secretary of Health, Education, and Welfare Human Services shall 
 57.36  agree upon, but, except as may be otherwise required by or under 
 58.1   the Social Security Act as to the services to be covered, such 
 58.2   agreement shall must provide in effect that: 
 58.3      (1) benefits will be provided for employees whose services 
 58.4   are covered by the agreement (and their dependents and 
 58.5   survivors) on the same basis as though such those services 
 58.6   constituted employment within the meaning of title II of the 
 58.7   Social Security Act; 
 58.8      (2) the state or other employer will pay to the federal 
 58.9   Secretary of the Treasury, at such time or times as may be 
 58.10  prescribed under the Social Security Act, contributions with 
 58.11  respect to wages, equal to the sum of the taxes which would be 
 58.12  imposed by the Federal Insurance Contributions Act if the 
 58.13  services covered by the agreement constituted employment within 
 58.14  the meaning of that act; 
 58.15     (3) Such the agreement shall be is effective with respect 
 58.16  to services in employment covered by the agreement performed 
 58.17  after a date specified therein but in no event may it be 
 58.18  effective with respect to any such services performed prior to 
 58.19  the first day of the calendar year in which such agreement is 
 58.20  entered into or in which the modification of the agreement 
 58.21  making it applicable to such services, is entered into except 
 58.22  that an agreement or modification entered into prior to January 
 58.23  1, 1960, may be effective with respect to services performed 
 58.24  after December 31, 1955, or after a later date specified in such 
 58.25  agreement or modification; and 
 58.26     (4) all services which constitute employment and are 
 58.27  performed in the employ of the state or any of its political 
 58.28  subdivisions by employees thereof, may be covered by such the 
 58.29  agreement whenever so specifically authorized by the statutory 
 58.30  provisions of this state pertaining to any coverage group of 
 58.31  such employees to which the agreement may become applicable 
 58.32  under the Social Security Act.  
 58.33     Subd. 2.  [INTERSTATE INSTRUMENTALITY.] (a) Any 
 58.34  instrumentality jointly created by this state and any other 
 58.35  state or states is hereby authorized, upon the granting of like 
 58.36  authority by such the other state or states, to: 
 59.1      (1) to enter into an agreement with the federal Secretary 
 59.2   of Health, Education, and Welfare Human Services whereby the 
 59.3   benefits of the federal old age and, survivors, and disability 
 59.4   insurance system shall be are extended to employees of such the 
 59.5   instrumentality,; 
 59.6      (2) to require its employees to pay (and for that purpose 
 59.7   to deduct from their wages) contributions equal to the amounts 
 59.8   which they would be required to pay under section 355.03, 
 59.9   subdivision 1, if they were covered by an agreement made 
 59.10  pursuant to under subdivision 1,; and 
 59.11     (3) to make payments to the federal Secretary of the 
 59.12  Treasury in accordance with such that agreement, including 
 59.13  payments from its own funds, and otherwise to comply with such 
 59.14  those agreements.  Such 
 59.15     (b) The agreements shall must, to the extent practicable, 
 59.16  be consistent with the terms and provisions of subdivision 1 and 
 59.17  other provisions of this chapter, as amended. 
 59.18     Subd. 3.  [GROUPS COVERED BY SOCIAL SECURITY.] The 
 59.19  following groups must be covered by an agreement or a 
 59.20  modification to an agreement between the state agency and the 
 59.21  federal Secretary of Health and Human Services: 
 59.22     (1) constitutional officers; 
 59.23     (2) Duluth teachers; 
 59.24     (3) educational employees; 
 59.25     (4) higher education employees; 
 59.26     (5) hospital employees; 
 59.27     (6) judges; 
 59.28     (7) legislators; 
 59.29     (8) Minneapolis teachers; 
 59.30     (9) public employees; 
 59.31     (10) St. Paul teachers; 
 59.32     (11) special authority or district employees; and 
 59.33     (12) state employees. 
 59.34     Sec. 28.  Minnesota Statutes 2000, section 355.03, is 
 59.35  amended to read: 
 59.36     355.03 [EMPLOYEES AND EMPLOYERS, CONTRIBUTIONS.] 
 60.1      Subdivision 1.  [EMPLOYEE CONTRIBUTION AMOUNT.] Every 
 60.2   employee of the state, or of any of its political subdivisions, 
 60.3   whose services are covered by the agreement entered into under 
 60.4   section 355.02 shall be required to must pay for the period 
 60.5   of such the coverage, into the contribution fund established by 
 60.6   section 355.04, contributions, with respect to wages, equal to 
 60.7   the amount of the employee's tax which would be imposed by the 
 60.8   Federal Insurance Contributions Act if such those services 
 60.9   constituted employment within the meaning of that act.  
 60.10  Such This liability shall arise arises in consideration of the 
 60.11  employee's retention in the service of the state, or any of its 
 60.12  political subdivisions, or the employee's entry upon such that 
 60.13  service, after the enactment of this chapter, as amended. 
 60.14     Subd. 2.  [EMPLOYEE DEDUCTION.] The contribution imposed by 
 60.15  this section shall must be collected by the covered employee's 
 60.16  employer by deducting the amount of the contribution from wages 
 60.17  as and when paid, but.  The failure to make such deduction shall 
 60.18  not relieve the employee from liability for such contribution.  
 60.19     Subd. 2a.  [EMPLOYER CONTRIBUTION.] (a) Employer 
 60.20  contributions that are required under the agreement must be paid 
 60.21  by the applicable employing unit. 
 60.22     (b) Employer contributions on behalf of St. Paul teachers, 
 60.23  Duluth teachers, Minneapolis teachers, or education employees 
 60.24  may be paid from normal school operating funds.  Employer 
 60.25  contributions on behalf of state employees must be paid by the 
 60.26  applicable department or agency from its appropriation or other 
 60.27  revenue, in the same proportion as salaries are paid, and must 
 60.28  be charged as an administrative cost of the state governmental 
 60.29  unit. 
 60.30     (c) Employing units may pay the employer contribution from 
 60.31  taxes collected or from other governmental revenue.  An 
 60.32  employing unit may include in its tax levy the amount necessary 
 60.33  to pay its social security obligations.  If the taxes authorized 
 60.34  to be levied cause the total levy amount to exceed any 
 60.35  limitation on the power of the employing unit to levy taxes, the 
 60.36  unit may still levy the necessary amount.  The employing unit, 
 61.1   in the event of a deficit, may issue debt obligations, payable 
 61.2   in not more than two years, in an amount which may cause its 
 61.3   indebtedness to exceed any limitation without holding an 
 61.4   election and may levy taxes to amortize the indebtedness.  The 
 61.5   authorized social security expenditures must not be included in 
 61.6   computing the cost of government for purposes of any home rule 
 61.7   charter or other charter. 
 61.8      (d) If the required employer contribution for social 
 61.9   security is increased and, as a result of that increase, there 
 61.10  is insufficient money available to a state governmental unit, 
 61.11  there is appropriated to the state department or agency from the 
 61.12  general fund the amount required to meet the deficiency, based 
 61.13  on certifications from the commissioner of employee relations to 
 61.14  the commissioner of finance.  The transfer of the appropriated 
 61.15  amount may only occur after the commissioner of finance notifies 
 61.16  the chair and ranking minority member of the house committee on 
 61.17  ways and means and the chair and ranking minority member of the 
 61.18  senate state government finance committee of the amount to be 
 61.19  transferred. 
 61.20     (e) For members of the general state employees retirement 
 61.21  plan of the Minnesota state retirement system who are employed 
 61.22  by the state horticultural society, the department of Minnesota 
 61.23  for the disabled American veterans organization, the department 
 61.24  of Minnesota of the veterans of foreign wars organization, the 
 61.25  Minnesota crop improvement association, the Minnesota historical 
 61.26  society, the armory building commission, and the 
 61.27  Minnesota-Wisconsin-Minneapolis-St. Paul survival plan project, 
 61.28  the applicable employing unit must pay the employer contribution 
 61.29  from any revenue source that it has. 
 61.30     Subd. 3.  [ADJUSTMENTS; REFUNDS.] If more or less than the 
 61.31  correct amount of the contribution imposed by this section is 
 61.32  paid or deducted with respect to any remuneration, proper 
 61.33  adjustments, or refund if adjustment is impracticable, shall 
 61.34  must be made, without interest, in such manner and at such times 
 61.35  as the state agency shall prescribe prescribes.  
 61.36     Subd. 4.  [DELINQUENT PAYMENTS.] Delinquent payments that 
 62.1   are due under this chapter, with compound interest at the rate 
 62.2   of six percent per annum, may be recovered by legal action in a 
 62.3   court of competent jurisdiction against an employing unit that 
 62.4   is liable for the amount.  The state agency may request that the 
 62.5   delinquent payment and interest amount be deducted from any 
 62.6   other money that is payable to the applicable employing unit by 
 62.7   any department or agency of the state.  An action for the 
 62.8   recovery of delinquent payments is not subject to any statutory 
 62.9   provision that would otherwise limit the time within which an 
 62.10  action may be commenced. 
 62.11     Sec. 29.  [355.035] [REIMBURSEMENT BY EMPLOYING UNITS.] 
 62.12     An employing unit which employs a member of a covered group 
 62.13  must reimburse the state agency for its pro rata share of the 
 62.14  cost of the administration of the agency with respect to social 
 62.15  security coverage in accordance with the rules of the state 
 62.16  agency pertaining to this reimbursement.  
 62.17     Sec. 30.  [355.036] [REPORTS.] 
 62.18     An employing unit which employs a member of a covered group 
 62.19  must make any reports in the form required and must include the 
 62.20  information that the state agency requires.  An employing unit 
 62.21  also must comply with the reporting requirements that the state 
 62.22  agency or the federal Secretary of Health and Human Services may 
 62.23  from time to time determine are necessary to ensure the 
 62.24  correctness and verification of relevant information. 
 62.25     Sec. 31.  [355.037] [PROCEEDS OF SPECIAL BENEFIT TAXES.] 
 62.26     The proceeds of the special benefit taxes that are 
 62.27  authorized to be levied for redevelopment purposes under section 
 62.28  469.033, subdivision 6, may be used to defray all or part of the 
 62.29  costs incurred by any housing and redevelopment authority under 
 62.30  this chapter. 
 62.31     Sec. 32.  Minnesota Statutes 2000, section 355.05, is 
 62.32  amended to read: 
 62.33     355.05 [RULES.] 
 62.34     The state agency shall make and publish such may promulgate 
 62.35  those rules, not inconsistent with the provisions of this 
 62.36  chapter, as amended, as it finds necessary or appropriate to the 
 63.1   efficient administration of the functions with which it is 
 63.2   charged under this chapter, as amended. 
 63.3      Sec. 33.  Minnesota Statutes 2000, section 355.07, is 
 63.4   amended to read: 
 63.5      355.07 [DECLARATION OF POLICY.] 
 63.6      (a) In order to extend to employees of the state and, its 
 63.7   political subdivisions, and its other governmental employers, 
 63.8   and to the dependents and survivors of such the employees of 
 63.9   those employing units, the basic protection accorded to others 
 63.10  by the old age and, survivors, and disability insurance system 
 63.11  embodied in the Social Security Act, it is hereby declared to be 
 63.12  the policy of the legislature, subject to the limitations of 
 63.13  this chapter, that these steps are taken to provide protection 
 63.14  to employees of the state and its political subdivisions on as 
 63.15  broad a basis as may be authorized by the legislature and is 
 63.16  permitted under the Social Security Act.  
 63.17     (b) It is also the policy of the legislature that the 
 63.18  protection afforded employees in positions covered by a 
 63.19  retirement system on the date an agreement under this chapter is 
 63.20  made applicable to service performed in those positions, or 
 63.21  receiving periodic benefits under the retirement system at that 
 63.22  time, will not be impaired as a result of making the agreement 
 63.23  so applicable or as a result of legislative enactment in 
 63.24  anticipation thereof when combined with the benefits accorded 
 63.25  the employee by the Social Security Act.  
 63.26     (c) To this end, the agreement referred to in section 
 63.27  355.02 shall must not be made applicable to any service 
 63.28  performed in any position covered by a retirement system unless 
 63.29  a referendum is first held by secret ballot in which a majority 
 63.30  of "eligible employees," as defined in section 218(d) (3) of the 
 63.31  Social Security Act, vote in favor thereof, or unless a 
 63.32  retirement system is divided in two divisions or parts, one of 
 63.33  which is composed of positions of members of the system who 
 63.34  desire coverage and one of which is composed of positions of 
 63.35  members of the system who do not desire coverage under section 
 63.36  218(d) (3) of the Social Security Act, in accordance with 
 64.1   subsections (6) and (7) thereof.  
 64.2      (d) Nothing in any provision of this chapter shall 
 64.3   authorize authorizes the extension of the insurance system 
 64.4   established by this chapter, as amended, to service in any 
 64.5   police officer's or firefighter's position or in any position 
 64.6   covered by a retirement system applicable exclusively to 
 64.7   positions in one or more law enforcement or fire fighting units, 
 64.8   agencies or departments.  
 64.9      Sec. 34.  Minnesota Statutes 2000, section 355.08, is 
 64.10  amended to read: 
 64.11     355.08 [APPLICATION OF SOCIAL SECURITY ACT.] 
 64.12     The provisions of the Social Security Act, and all acts 
 64.13  amendatory thereof, shall govern relative to employees of the 
 64.14  state and, its political subdivisions, and its other 
 64.15  governmental employers subject to Minnesota Statutes, this 
 64.16  chapter 355, as amended, anything in said this chapter to the 
 64.17  contrary notwithstanding.  
 64.18     Sec. 35.  [355.091] [DIVISION OF RETIREMENT PLANS.] 
 64.19     (a) The public retirement plans enumerated in paragraph (b) 
 64.20  must be divided into two parts in accordance with section 
 64.21  218(d)(6)(c) of the Social Security Act, with one part composed 
 64.22  of plan members who did not elect social security coverage in 
 64.23  the applicable referendum and the other part composed of plan 
 64.24  members who did elect social security coverage in the applicable 
 64.25  referendum. 
 64.26     (b) The applicable public retirement plans are: 
 64.27     (1) the elective state officers retirement plan; 
 64.28     (2) the judges retirement plan; 
 64.29     (3) the legislators retirement plan; 
 64.30     (4) the Minneapolis teachers retirement fund association; 
 64.31     (5) the general employees retirement plan of the public 
 64.32  employees retirement association; 
 64.33     (6) the St. Paul teachers retirement fund association; and 
 64.34     (7) the teachers retirement association. 
 64.35     (c) Plan participants and persons electing participation 
 64.36  under section 354B.21 remain members of the teachers retirement 
 65.1   association for purposes of social security coverage only, and 
 65.2   remain covered by the applicable agreement entered into under 
 65.3   section 355.01, but are not members of the teachers retirement 
 65.4   association for any other purpose while employed in covered 
 65.5   employment. 
 65.6      Sec. 36.  [REPEALER.] 
 65.7      Minnesota Statutes 2000, sections 355.01, subdivisions 2, 
 65.8   4, 5, 9, and 10; 355.11; 355.12; 355.13; 355.14; 355.15; 355.16; 
 65.9   355.17; 355.201; 355.202; 355.203; 355.204; 355.205; 355.206; 
 65.10  355.207; 355.208; 355.209; 355.21; 355.22; 355.23; 355.24; 
 65.11  355.25; 355.26; 355.27; 355.28; 355.281; 355.282; 355.283; 
 65.12  355.284; 355.285; 355.286; 355.287; 355.288; 355.29; 355.291; 
 65.13  355.292; 355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 
 65.14  355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 355.41; 
 65.15  355.42; 355.43; 355.44; 355.45; 355.46; 355.48; 355.49; 355.50; 
 65.16  355.51; 355.52; 355.54; 355.55; 355.56; 355.57; 355.58; 355.59; 
 65.17  355.60; 355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 
 65.18  355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 355.74; 
 65.19  355.75; 355.76; 355.77; 355.78; 355.79; 355.80; 355.81; and 
 65.20  355.90, are repealed. 
 65.21     Sec. 37.  [EFFECTIVE DATE.] 
 65.22     Sections 1 to 36 are effective on July 1, 2002. 
 65.23                             ARTICLE 8 
 65.24                         PUBLIC PENSION PLAN 
 65.25                   ACTUARIAL ASSUMPTION REVISIONS 
 65.26     Section 1.  Minnesota Statutes 2000, section 356.215, 
 65.27  subdivision 4d, is amended to read: 
 65.28     Subd. 4d.  [INTEREST AND SALARY ASSUMPTIONS.] (a) The 
 65.29  actuarial valuation must use the applicable following 
 65.30  preretirement interest assumption and the applicable following 
 65.31  postretirement interest assumption: 
 65.32                                     preretirement  postretirement 
 65.33                                     interest rate  interest rate 
 65.34             plan                      assumption     assumption 
 65.35       general state employees 
 65.36           retirement plan                  8.5%          6.0% 
 65.37       correctional state employees 
 65.38           retirement plan                  8.5           6.0 
 65.39       state patrol retirement plan         8.5           6.0 
 65.40       legislators retirement plan          8.5           6.0 
 66.1        elective state officers
 66.2            retirement plan                  8.5           6.0 
 66.3        judges retirement plan               8.5           6.0 
 66.4        general public employees 
 66.5            retirement plan                  8.5           6.0 
 66.6        public employees police and fire 
 66.7            retirement plan                  8.5           6.0 
 66.8        local government correctional 
 66.9            service retirement plan          8.5           6.0 
 66.10       teachers retirement plan             8.5           6.0 
 66.11       Minneapolis employees 
 66.12           retirement plan                  6.0           5.0 
 66.13       Duluth teachers retirement plan      8.5           8.5 
 66.14       Minneapolis teachers retirement
 66.15           plan                             8.5           8.5 
 66.16       St. Paul teachers retirement 
 66.17           plan                             8.5           8.5 
 66.18       Minneapolis police relief 
 66.19           association                      6.0           6.0 
 66.20       other local Fairmont police relief 
 66.21           associations association         5.0           5.0 
 66.22       Minneapolis fire department 
 66.23           relief association               6.0           6.0 
 66.24       other local salaried firefighters 
 66.25           Virginia fire department 
 66.26           relief associations association  5.0           5.0 
 66.27       local monthly benefit volunteer 
 66.28           firefighters relief associations 5.0           5.0 
 66.29     (b) The actuarial valuation must use the applicable 
 66.30  following single rate future salary increase assumption or the 
 66.31  applicable following graded rate future salary increase 
 66.32  assumption: 
 66.33     (1) single rate future salary increase assumption 
 66.34                                              future salary 
 66.35             plan                           increase assumption 
 66.36       legislators retirement plan                  5.0% 
 66.37       elective state officers retirement 
 66.38           plan                                     5.0 
 66.39       judges retirement plan                       5.0 
 66.40       Minneapolis police relief association        4.0 
 66.41       other local Fairmont police relief 
 66.42           associations association                 3.5 
 66.43       Minneapolis fire department relief 
 66.44           association                              4.0 
 66.45       other local salaried firefighters 
 66.46           Virginia fire department 
 66.47           relief associations association          3.5 
 66.48     (2) modified single rate future salary increase assumption 
 66.49                                              future salary 
 66.50             plan                           increase assumption
 66.51       Minneapolis employees            the prior calendar year 
 66.52         retirement plan                amount increased first by 
 66.53                                        1.0198 percent to prior 
 66.54                                        fiscal year date and  
 66.55                                        then increased by 4.0
 66.56                                        percent annually for 
 66.57                                        each future year
 66.58     (3) select and ultimate future salary increase assumption 
 66.59  or graded rate future salary increase assumption 
 66.60                                               future salary 
 67.1              plan                           increase assumption 
 67.2        general state employees             select calculation and
 67.3            retirement plan                      assumption A 
 67.4        correctional state employees 
 67.5            retirement plan                      assumption H 
 67.6        state patrol retirement plan             assumption H 
 67.7        general public employees            select calculation and
 67.8            retirement plan                      assumption B 
 67.9        public employees police and fire 
 67.10           fund retirement plan                 assumption C 
 67.11       local government correctional service 
 67.12           retirement plan                      assumption H 
 67.13       teachers retirement plan                 assumption D 
 67.14       Duluth teachers retirement plan          assumption E 
 67.15       Minneapolis teachers retirement plan     assumption F 
 67.16       St. Paul teachers retirement plan        assumption G 
 67.17       
 67.18       The select calculation: is,
 67.19       during the ten-year select period, 0.2 a designated percent
 67.20       is multiplied by the result of ten minus T, where T is 
 67.21       the number of completed years of service, and is added
 67.22       to the applicable future salary increase assumption.  The
 67.23       designated percent is 0.2 percent for the correctional state
 67.24       employees retirement plan, the state patrol retirement 
 67.25       plan, the public employees police and fire plan, and the 
 67.26       local government correctional service plan; 0.3 percent 
 67.27       for the general state employees retirement plan, the 
 67.28       general public employees retirement plan, the teachers 
 67.29       retirement plan, the Duluth teachers retirement fund  
 67.30       association, and the Saint Paul teachers retirement fund  
 67.31       association; and 0.4 percent for the Minneapolis teachers
 67.32       retirement fund association.   
 67.33      
 67.34       The ultimate future salary increase assumption is: 
 67.35       
 67.36       age  A     B      C     D     E     F     G      H 
 67.37       16  6.95% 6.95% 11.50% 8.20% 8.00% 7.50% 7.25% 7.7500
 67.38                                          6.50  6.90 
 67.39       17  6.90  6.90  11.50  8.15  8.00  7.50  7.25  7.7500
 67.40                                          6.50  6.90
 67.41       18  6.85  6.85  11.50  8.10  8.00  7.50  7.25  7.7500
 67.42                                          6.50  6.90
 67.43       19  6.80  6.80  11.50  8.05  8.00  7.50  7.25  7.7500
 67.44                                          6.50  6.90
 67.45       20  6.75  6.75  11.50  8.00  8.00  7.50  7.25  7.7500
 67.46                 6.40         6.00  6.90  6.50  6.90
 67.47       21  6.70  6.70  11.50  7.95  8.00  7.50  7.25  7.1454
 67.48           6.75  6.40         6.00  6.90  6.50  6.90
 67.49       22  6.65  6.65  11.00  7.90  8.00  7.50  7.25  7.0725
 67.50           6.75  6.40         6.00  6.90  6.50  6.90
 67.51       23  6.75  6.40  10.50  6.00  6.85  6.50  6.85  7.0544
 67.52       24  6.66  6.55  10.00  7.80  7.80  7.30  7.20  7.0363
 67.53           6.75  6.40         6.00  6.80  6.50  6.80
 67.54       25  6.50  6.50   9.50  7.75  7.70  7.20  7.15  7.0000 
 67.55           6.75  6.40         6.00  6.75  6.50  6.75 
 67.56       26  6.45  6.45   9.20  7.70  7.60  7.10  7.10  7.0000
 67.57           6.75  6.36         6.00  6.70  6.50  6.70
 67.58       27  6.40  6.40   8.90  7.65  7.50  7.00  7.05  7.0000 
 67.59           6.75  6.32         6.00  6.65  6.50  6.65
 67.60       28  6.35  6.35   8.60  7.60  7.40  6.90  7.00  7.0000
 67.61           6.75  6.28         6.00  6.60  6.50  6.60
 67.62       29  6.30  6.30   8.30  7.55  7.30  6.80  6.95  7.0000
 67.63           6.75  6.24         6.00  6.55  6.50  6.55
 67.64       30  6.25  6.30   8.00  7.50  7.20  6.70  6.90  7.0000
 67.65           6.75  6.20         6.00  6.50  6.50  6.50
 67.66       31  6.20  6.25   7.80  7.45  7.10  6.60  6.85  7.0000
 67.67           6.75  6.16         6.00  6.45  6.50  6.45
 67.68       32  6.15  6.21   7.60  7.40  7.00  6.50  6.80  7.0000
 67.69           6.75  6.12         6.00  6.40  6.50  6.40
 67.70       33  6.10  6.17   7.40  7.30  6.90  6.40  6.75  7.0000
 67.71           6.75  6.08         6.00  6.35  6.50  6.35
 68.1        34  6.05  6.09   7.20  7.10  6.80  6.30  6.70  7.0000
 68.2            6.75  6.04         6.00  6.30  6.50  6.30
 68.3        35  6.00  6.05   7.00  7.00  6.70  6.20  6.65  7.0000
 68.4            6.75  6.00         6.00  6.25  6.50  6.25
 68.5        36  6.95  6.01   6.80  6.85  6.60  6.10  6.60  6.9019
 68.6            6.75  5.96         6.00  6.20  6.50  6.20
 68.7        37  5.90  5.97   6.60  6.70  6.50  6.00  6.55  6.8074
 68.8            6.75  5.92         6.00  6.15  6.50  6.15
 68.9        38  5.85  5.93   6.40  6.55  6.40  5.90  6.50  6.7125
 68.10           6.75  5.88         5.90  6.10  6.50  6.10
 68.11       39  5.80  5.89   6.20  6.40  6.30  5.80  6.40  6.6054
 68.12           6.75  5.84         5.80  6.05  6.50  6.05
 68.13       40  5.75  5.85   6.00  6.25  6.20  5.70  6.30  6.5000
 68.14           6.75  5.80         5.70  6.00  6.50  6.00
 68.15       41  5.70  5.81   5.90  6.10  6.10  5.60  6.20  6.3540
 68.16           6.75  5.76         5.60  5.90  6.50  5.95
 68.17       42  5.65  5.77   5.80  5.95  6.00  5.50  6.10  6.2087
 68.18           6.75  5.72         5.50  5.80  6.50  5.90
 68.19       43  5.60  5.73   5.70  5.80  5.90  5.45  6.00  6.0622
 68.20           6.65  5.68         5.40  5.70  6.50  5.85
 68.21       44  5.55  5.69   5.60  5.65  5.80  5.40  5.90  5.9048
 68.22           6.55  5.64         5.30  5.60  6.50  5.80
 68.23       45  5.50  5.65   5.50  5.50  5.70  5.35  5.80  5.7500
 68.24           6.45  5.60         5.20  5.50  6.50  5.75
 68.25       46  5.45  5.62   5.45  5.45  5.60  5.30  5.70  5.6940
 68.26           6.35  5.56         5.10  5.40  6.40  5.70
 68.27       47  5.40  5.59   5.40  5.40  5.50  5.25  5.65  5.6375
 68.28           6.25  5.52         5.00  5.30  6.30
 68.29       48  5.35  5.56   5.35  5.35  5.45  5.20  5.60  5.5822
 68.30           6.15  5.48         5.00  5.20  6.20
 68.31       49  5.30  5.53   5.30  5.30  5.40  5.15  5.55  5.5404
 68.32           6.05  5.44         5.00  5.10  6.10
 68.33       50  5.25  5.50   5.25  5.25  5.35  5.10  5.50  5.5000
 68.34           5.95  5.40         5.00  5.00  6.00
 68.35       51  5.20  5.45   5.25  5.20  5.30  5.05  5.45  5.4384
 68.36           5.85  5.36         5.00  5.00  5.90
 68.37       52  5.15  5.40   5.25  5.15  5.25  5.00  5.40  5.3776
 68.38           5.75  5.32         5.00  5.00  5.80
 68.39       53  5.10  5.35   5.25  5.10  5.25  5.00  5.35  5.3167
 68.40           5.65  5.28         5.00  5.00  5.70
 68.41       54  5.05  5.30   5.25  5.05  5.25  5.00  5.30  5.2826
 68.42           5.55  5.24         5.00  5.00  5.60
 68.43       55  5.00  5.25   5.25  5.00  5.25  5.00  5.25  5.2500 
 68.44           5.45  5.20               5.00  5.50
 68.45       56  5.00  5.20   5.25  5.00  5.25  5.00  5.25  5.2500
 68.46           5.35  5.16               5.00  5.40  5.20
 68.47       57  5.00  5.15   5.25  5.00  5.25  5.00  5.25  5.2500
 68.48           5.25  5.12               5.00  5.30  5.15
 68.49       58  5.00  5.10   5.25  5.00  5.25  5.00  5.25  5.2500
 68.50           5.25  5.08         5.10  5.00  5.20  5.10
 68.51       59  5.00  5.05   5.25  5.00  5.25  5.00  5.25  5.2500
 68.52           5.25  5.04         5.20  5.00  5.10  5.05
 68.53       60  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 68.54           5.25               5.30  5.00        5.00
 68.55       61  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 68.56           5.25               5.40  5.00        5.00
 68.57       62  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 68.58           5.25               5.50  5.00        5.00
 68.59       63  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 68.60           5.25               5.60  5.00        5.00
 68.61       64  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 68.62           5.25               5.70  5.00        5.00
 68.63       65  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 68.64           5.25               5.70  5.00        5.00
 68.65       66  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 68.66           5.25               5.70  5.00        5.00
 68.67       67  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 68.68           5.25               5.70  5.00        5.00
 68.69       68  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 68.70           5.25               5.70  5.00        5.00
 68.71       69  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 69.1            5.25               5.70  5.00        5.00
 69.2        70  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 69.3            5.25               5.70  5.00        5.00
 69.4        71  5.00  5.00         5.00
 69.5            5.25               5.70
 69.6      (c) The actuarial valuation must use the applicable 
 69.7   following payroll growth assumption for calculating the 
 69.8   amortization requirement for the unfunded actuarial accrued 
 69.9   liability where the amortization retirement is calculated as a 
 69.10  level percentage of an increasing payroll: 
 69.11                                                   payroll growth
 69.12             plan                                    assumption 
 69.13       general state employees retirement plan          5.00% 
 69.14       correctional state employees retirement plan     5.00 
 69.15       state patrol retirement plan                     5.00 
 69.16       legislators retirement plan                      5.00 
 69.17       elective state officers retirement plan          5.00 
 69.18       judges retirement plan                           5.00 
 69.19       general public employees retirement plan         6.00 
 69.20       public employees police and fire 
 69.21           retirement plan                              6.00 
 69.22       local government correctional service 
 69.23           retirement plan                              6.00 
 69.24       teachers retirement plan                         5.00 
 69.25       Duluth teachers retirement plan                  5.00 
 69.26       Minneapolis teachers retirement plan             5.00 
 69.27       St. Paul teachers retirement plan                5.00 
 69.28     Sec. 2.  [EFFECTIVE DATE.] 
 69.29     Section 1 is effective on June 30, 2002. 
 69.30                             ARTICLE 9 
 69.31                    AUTHORIZATION OF ADDITIONAL
 69.32                   SUPPLEMENTAL RETIREMENT PLANS
 69.33     Section 1.  Minnesota Statutes 2001 Supplement, section 
 69.34  356.24, subdivision 1, is amended to read: 
 69.35     Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
 69.36  for a school district or other governmental subdivision or state 
 69.37  agency to levy taxes for, or contribute public funds to a 
 69.38  supplemental pension or deferred compensation plan that is 
 69.39  established, maintained, and operated in addition to a primary 
 69.40  pension program for the benefit of the governmental subdivision 
 69.41  employees other than: 
 69.42     (1) to a supplemental pension plan that was established, 
 69.43  maintained, and operated before May 6, 1971; 
 69.44     (2) to a plan that provides solely for group health, 
 69.45  hospital, disability, or death benefits; 
 69.46     (3) to the individual retirement account plan established 
 70.1   by chapter 354B; 
 70.2      (4) to a plan that provides solely for severance pay under 
 70.3   section 465.72 to a retiring or terminating employee; 
 70.4      (5) for employees other than personnel employed by the 
 70.5   board of trustees of the Minnesota state colleges and 
 70.6   universities and covered under the higher education supplemental 
 70.7   retirement plan under chapter 354C, if provided for in a 
 70.8   personnel policy of the public employer or in the collective 
 70.9   bargaining agreement between the public employer and the 
 70.10  exclusive representative of public employees in an appropriate 
 70.11  unit, in an amount matching employee contributions on a dollar 
 70.12  for dollar basis, but not to exceed an employer contribution of 
 70.13  $2,000 a year per employee; 
 70.14     (i) to the state of Minnesota deferred compensation plan 
 70.15  under section 352.96; or 
 70.16     (ii) in payment of the applicable portion of the 
 70.17  contribution made to any investment eligible under section 
 70.18  403(b) of the Internal Revenue Code, if the employing unit has 
 70.19  complied with any applicable pension plan provisions of the 
 70.20  Internal Revenue Code with respect to the tax-sheltered annuity 
 70.21  program during the preceding calendar year; 
 70.22     (6) for personnel employed by the board of trustees of the 
 70.23  Minnesota state colleges and universities and not covered by 
 70.24  clause (5), to the supplemental retirement plan under chapter 
 70.25  354C, if provided for in a personnel policy or in the collective 
 70.26  bargaining agreement of the public employer with the exclusive 
 70.27  representative of the covered employees in an appropriate unit, 
 70.28  in an amount matching employee contributions on a dollar for 
 70.29  dollar basis, but not to exceed an employer contribution of 
 70.30  $2,700 a year for each employee; 
 70.31     (7) to a supplemental plan or to a governmental trust to 
 70.32  save for postretirement health care expenses qualified for 
 70.33  tax-preferred treatment under the Internal Revenue Code, if 
 70.34  provided for in a personnel policy or in the collective 
 70.35  bargaining agreement of a public employer with the exclusive 
 70.36  representative of the covered employees in an appropriate unit; 
 71.1   or 
 71.2      (8) to the laborer's national industrial pension fund for 
 71.3   the employees of a governmental subdivision who are covered by a 
 71.4   collective bargaining agreement that provides for coverage by 
 71.5   that fund and that sets forth a fund contribution rate, but not 
 71.6   to exceed an employer contribution of $2,000 per year per 
 71.7   employee; 
 71.8      (9) to the plumbers' and pipefitters' national pension fund 
 71.9   for the employees of a governmental subdivision who are covered 
 71.10  by a collective bargaining agreement that provides for coverage 
 71.11  by that fund and that sets forth a fund contribution rate, but 
 71.12  not to exceed an employer contribution of $2,000 per year per 
 71.13  employee; 
 71.14     (10) to the international union of operating engineers 
 71.15  pension fund for the employees of a governmental subdivision who 
 71.16  are covered by a collective bargaining agreement that provides 
 71.17  for coverage by that fund and that sets forth a fund 
 71.18  contribution rate, but not to exceed an employer contribution of 
 71.19  $2,000 per year per employee; or 
 71.20     (11) to a supplemental plan organized and operated under 
 71.21  the federal Internal Revenue Code, as amended, that is wholly 
 71.22  and solely funded by the employee's accumulated sick leave, 
 71.23  accumulated vacation leave, and accumulated severance pay. 
 71.24     Sec. 2.  Minnesota Statutes 2000, section 356.25, is 
 71.25  amended to read: 
 71.26     356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 
 71.27  EXCLUSIONS.] 
 71.28     Notwithstanding any other provision of law or charter, no 
 71.29  city, county, public agency or instrumentality, or other 
 71.30  political subdivision shall, after August 1, 1975, is required 
 71.31  or permitted to establish for any of its employees any local 
 71.32  pension plan or fund financed in whole or in part from public 
 71.33  funds, other than: 
 71.34     (1) a supplemental pension or deferred compensation plan 
 71.35  authorized under section 356.24; or 
 71.36     (2) a volunteer firefighter's relief association 
 72.1   established pursuant to under chapter 424A and governed by 
 72.2   sections 69.771 to 69.776. 
 72.3      Sec. 3.  [RATIFICATION AND VALIDATION OF CERTAIN PAST 
 72.4   ACTIONS.] 
 72.5      Any supplemental pension plan that is organized and 
 72.6   operated under section 401(a) of the federal Internal Revenue 
 72.7   Code, as amended, that is wholly and solely funded by an 
 72.8   employee's accumulated sick leave, accumulated vacation leave, 
 72.9   and accumulated severance pay, and that was established before 
 72.10  the effective date of this act and any contributions to the plan 
 72.11  that may be characterized as public funds within the meaning of 
 72.12  Minnesota Statutes, section 356.24, are hereby ratified and 
 72.13  validated. 
 72.14     Sec. 4.  [EFFECTIVE DATE.] 
 72.15     Sections 1 to 3 are effective on the day following final 
 72.16  enactment. 
 72.17                             ARTICLE 10 
 72.18                       GENERAL RETIREMENT LAW
 72.19                 REORGANIZATION AND RECODIFICATION
 72.20                   PUBLIC RETIREMENT PLAN PURPOSE
 72.21     Section 1.  Minnesota Statutes 2000, section 356.001, is 
 72.22  amended to read: 
 72.23     356.001 [PURPOSE OF PUBLIC PLANS.] 
 72.24     Subdivision 1.  [EXCLUSIVE BENEFIT OF MEMBERS AND 
 72.25  BENEFICIARIES.] (a) The public plans and funds specified in 
 72.26  subdivision 4 are established to provide for the retirement of 
 72.27  their members and to provide funds for the beneficiaries of 
 72.28  members in the event of death of a member.  
 72.29     (b) The public plans and funds are established and shall 
 72.30  must be maintained for the exclusive benefit of the members and 
 72.31  the beneficiaries of the members. Except as provided in 
 72.32  subdivisions 2 and 3, no part of the moneys of the plans and 
 72.33  funds shall may revert to the plan or fund or be used for or 
 72.34  diverted to purposes other than the exclusive benefit of the 
 72.35  members or their beneficiaries.  
 72.36     Subd. 2.  [ALLOWABLE EXPENSES.] The necessary, reasonable, 
 73.1   and direct expenses of maintaining, protecting, and 
 73.2   administering the public plan or fund, as authorized in the laws 
 73.3   governing the plan or fund, shall must be considered as 
 73.4   expenditures for the exclusive benefit of the members or their 
 73.5   beneficiaries. 
 73.6      Subd. 3.  [EFFECT OF AMENDMENTS OR TERMINATION.] (a) If a 
 73.7   public plan or fund as defined in subdivision 4 is terminated or 
 73.8   the plan or fund provisions are amended, no part of the moneys 
 73.9   held in the plan or fund shall may be used for or diverted to 
 73.10  any purpose other than the exclusive benefit of the members or 
 73.11  their beneficiaries, except as provided in this subdivision.  
 73.12     (b) If a plan or fund is terminated, all affected members 
 73.13  have a nonforfeitable interest in their benefits that were 
 73.14  accrued and funded to date.  The value of the accrued benefits 
 73.15  to be credited to the account of each affected member shall must 
 73.16  be calculated as of the date of termination and the funding 
 73.17  ratio of the plan or fund must be applied to the accrued benefit 
 73.18  of each affected member.  
 73.19     (c) The board of trustees of the plan or fund shall then, 
 73.20  as soon as administratively feasible following the termination, 
 73.21  pay each eligible member or beneficiary on behalf of a member 
 73.22  the amount in the member's account in a lump sum.  In the case 
 73.23  of a member whose whereabouts is unknown, the board shall notify 
 73.24  the member at the last known address by certified mail with 
 73.25  return receipt requested advising the member of the member's 
 73.26  right to a pending distribution.  If the member cannot be 
 73.27  located in this manner, the board shall establish a custodial 
 73.28  account for the member's benefit in a federally insured bank, 
 73.29  savings association, or credit union in which the member's 
 73.30  account balance shall must be deposited.  If the board receives 
 73.31  proof of death of a member that is satisfactory to the board, 
 73.32  the account balance shall must be paid to the beneficiary of the 
 73.33  member.  
 73.34     Subd. 4.  [COVERED PLANS AND FUNDS.] This section applies 
 73.35  to all public pension and retirement plans and funds established 
 73.36  pursuant to under the laws of the state of Minnesota that 
 74.1   receive contributions from moneys derived from taxation.  
 74.2      Subd. 5.  [CONSTRUCTION.] Nothing contained in this section 
 74.3   shall may be construed to authorize, or otherwise imply, a 
 74.4   legislative policy or intent favoring the termination of any 
 74.5   plan or fund to which this section applies.  
 74.6              PUBLIC PENSION PLAN ACTUARIAL, FINANCIAL, 
 74.7                       AND INVESTMENT REPORTING
 74.8      Sec. 2.  Minnesota Statutes 2000, section 356.20, 
 74.9   subdivision 1, is amended to read: 
 74.10     Subdivision 1.  [REPORT REQUIRED.] (a) The governing or 
 74.11  managing board or administrative officials of the public pension 
 74.12  and retirement funds enumerated in subdivision 2 shall annually 
 74.13  prepare and file a financial report following the close of each 
 74.14  fiscal year.  
 74.15     (b) This requirement shall also apply applies to any plan 
 74.16  or fund which may be a successor to any organization so 
 74.17  enumerated or to any newly formed retirement plan, fund or 
 74.18  association operating under the control or supervision of any 
 74.19  public employee group, governmental unit, or institution 
 74.20  receiving a portion of its support through legislative 
 74.21  appropriations.  
 74.22     (c) The report shall must be prepared under the supervision 
 74.23  and at the direction of the management of each fund and shall 
 74.24  must be signed by the presiding officer of the managing board of 
 74.25  the fund and the chief administrative official of the fund.  
 74.26     Sec. 3.  Minnesota Statutes 2000, section 356.20, 
 74.27  subdivision 2, is amended to read: 
 74.28     Subd. 2.  [COVERED PUBLIC PENSION PLANS AND FUNDS.] This 
 74.29  section applies to the following public pension plans: 
 74.30     (1) the general state employees retirement fund. plan of 
 74.31  the Minnesota state retirement system; 
 74.32     (2) the general employees retirement plan of the public 
 74.33  employees retirement fund. association; 
 74.34     (3) the teachers retirement association.; 
 74.35     (4) the state patrol retirement fund. plan; 
 74.36     (5) the Minneapolis teachers retirement fund association.; 
 75.1      (6) the St. Paul teachers retirement fund association.; 
 75.2      (7) the Duluth teachers retirement fund association.; 
 75.3      (8) the Minneapolis employees retirement fund.; 
 75.4      (9) the University of Minnesota faculty retirement plan.; 
 75.5      (10) the University of Minnesota faculty supplemental 
 75.6   retirement plan.; 
 75.7      (11) the judges retirement fund.; 
 75.8      (12) Any a police or firefighter's relief association 
 75.9   enumerated described in section 69.77, subdivision 1a, or 
 75.10  69.771, subdivision 1.; 
 75.11     (13) the public employees police and fire fund. plan of the 
 75.12  public employees retirement association; 
 75.13     (14) the correctional state employees retirement plan of 
 75.14  the Minnesota state retirement system correctional officers 
 75.15  retirement fund.; and 
 75.16     (15) public employees the local government correctional 
 75.17  service retirement plan of the public employees retirement 
 75.18  association. 
 75.19     Sec. 4.  Minnesota Statutes 2000, section 356.20, 
 75.20  subdivision 3, is amended to read: 
 75.21     Subd. 3.  [FILING REQUIREMENT.] The financial report is a 
 75.22  public record.  A copy of the report or a synopsis of the report 
 75.23  containing the information required by this section shall must 
 75.24  be distributed annually to each member of the fund and to the 
 75.25  governing body of each governmental subdivision of the state 
 75.26  which makes employers contributions thereto or in whose behalf 
 75.27  taxes are levied for the employers' contribution.  A signed copy 
 75.28  of the report shall must be delivered to the executive director 
 75.29  of the legislative commission on pensions and retirement and to 
 75.30  the legislative reference library not later than six months 
 75.31  after the close of each fiscal year or one month following the 
 75.32  completion and delivery to the retirement fund of the actuarial 
 75.33  valuation report of the fund by the actuary retained by the 
 75.34  legislative commission on pensions and retirement, if 
 75.35  applicable, whichever is later.  
 75.36     Sec. 5.  Minnesota Statutes 2000, section 356.20, 
 76.1   subdivision 4, is amended to read: 
 76.2      Subd. 4.  [CONTENTS OF FINANCIAL REPORT.] (a) The financial 
 76.3   report required by this section must contain financial 
 76.4   statements and disclosures that indicate the financial 
 76.5   operations and position of the retirement plan and fund.  The 
 76.6   report must conform with generally accepted governmental 
 76.7   accounting principles, applied on a consistent basis.  The 
 76.8   report must be audited.  The report must include, as part of its 
 76.9   exhibits or footnotes, an actuarial disclosure item based on the 
 76.10  actuarial valuation calculations prepared by the 
 76.11  commission-retained actuary or by the actuary retained by the 
 76.12  retirement fund or plan, if applicable, according to applicable 
 76.13  actuarial requirements enumerated in section 356.215, and 
 76.14  specified in the most recent standards for actuarial work 
 76.15  adopted by the legislative commission on pensions and 
 76.16  retirement.  The accrued assets, the accrued liabilities, 
 76.17  including accrued reserves, and the unfunded actuarial accrued 
 76.18  liability of the fund or plan must be disclosed.  The disclosure 
 76.19  item must contain a declaration by the actuary retained by the 
 76.20  legislative commission on pensions and retirement or the actuary 
 76.21  retained by the fund or plan, whichever applies, specifying that 
 76.22  the required reserves for any retirement, disability, or 
 76.23  survivor benefits provided under a benefit formula are computed 
 76.24  in accordance with the entry age actuarial cost method and with 
 76.25  the most recent applicable standards for actuarial work adopted 
 76.26  by the legislative commission on pensions and retirement. 
 76.27     (a) (b) Assets of the fund or plan contained in the 
 76.28  disclosure item must include the following statement of the 
 76.29  actuarial value of current assets as defined in section 356.215, 
 76.30  subdivision 1: 
 76.31                                      Value         Value 
 76.32                                     at cost       at market
 76.33   Cash, cash equivalents, and  
 76.34     short-term securities           .........     ......... 
 76.35   Accounts receivable               .........     .........
 76.36   Accrued investment income         .........     .........  
 77.1    Fixed income investments          .........     ......... 
 77.2    Equity investments other 
 77.3      than real estate                .........     ......... 
 77.4    Real estate investments           .........     ......... 
 77.5    Equipment                         .........     ......... 
 77.6    Equity in the Minnesota 
 77.7      postretirement investment
 77.8      fund                            .........     ......... 
 77.9    Other                             .........     .........  
 77.10    
 77.11   Total assets 
 77.12     Value at cost                                 .........
 77.13     Value at market                               ......... 
 77.14     Value of current assets                       ......... 
 77.15     (b) (c) The unfunded actuarial accrued liability of the 
 77.16  fund or plan contained in the disclosure item must include the 
 77.17  following measures of unfunded actuarial accrued liability, 
 77.18  using the value of current assets:  
 77.19     (1) unfunded actuarial accrued liability, determined by 
 77.20  subtracting the current assets and the present value of future 
 77.21  normal costs from the total current and expected future benefit 
 77.22  obligations; and 
 77.23     (2) unfunded pension benefit obligation, determined by 
 77.24  subtracting the current assets from the actuarial present value 
 77.25  of credited projected benefits. 
 77.26     If the current assets of the fund or plan exceed the 
 77.27  actuarial accrued liabilities, the excess must be disclosed and 
 77.28  indicated as a surplus. 
 77.29     (c) (d) The pension benefit obligations schedule included 
 77.30  in the disclosure must contain the following information on the 
 77.31  benefit obligations: 
 77.32     (1) The pension benefit obligation, determined as the 
 77.33  actuarial present value of credited projected benefits on 
 77.34  account of service rendered to date, separately identified as 
 77.35  follows: 
 77.36           (i)   For annuitants 
 78.1                  Retirement annuities 
 78.2                  Disability benefits
 78.3                  Surviving spouse and child benefits
 78.4            (ii)  For former members without vested rights 
 78.5            (iii) For deferred annuitants' benefits, including 
 78.6                  any augmentation 
 78.7            (iv)  For active employees 
 78.8                  Accumulated employee contributions,
 78.9                  including allocated investment income
 78.10                 Employer-financed benefits vested
 78.11                 Employer-financed benefits nonvested
 78.12                 Total pension benefit obligation; and
 78.13     (2) If there are additional benefits not appropriately 
 78.14  covered by the foregoing items of benefit obligations, a 
 78.15  separate identification of the obligation. 
 78.16     (d) (e) Any additional statements or exhibits or more 
 78.17  detailed or subdivided itemization of a disclosure item that 
 78.18  will enable the management of the fund to portray a true 
 78.19  interpretation of the fund's financial condition must be 
 78.20  included in the additional statements or exhibits. 
 78.21     Sec. 6.  Minnesota Statutes 2000, section 356.20, 
 78.22  subdivision 4a, is amended to read: 
 78.23     Subd. 4a.  [FINANCIAL REPORT FOR POLICE OR FIREFIGHTERS 
 78.24  RELIEF ASSOCIATION.] For any police or firefighter's relief 
 78.25  association referred to in subdivision 2, clause (12), a 
 78.26  financial report duly filed pursuant to and meeting the 
 78.27  requirements of section 69.051 shall must be deemed to have met 
 78.28  the requirements of subdivision 4. 
 78.29     Sec. 7.  Minnesota Statutes 2000, section 356.215, as 
 78.30  amended by Laws 2001, First Special Session chapter 10, article 
 78.31  11, section 18, is amended to read: 
 78.32     356.215 [ACTUARIAL VALUATIONS AND EXPERIENCE STUDIES.] 
 78.33     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of 
 78.34  sections 3.85 and 356.20 to 356.23, each of the terms in the 
 78.35  following paragraphs have the meaning given. 
 78.36     (b) "Actuarial valuation" means a set of calculations 
 79.1   prepared by the actuary retained by the legislative commission 
 79.2   on pensions and retirement if so required under section 3.85, or 
 79.3   otherwise, by an approved actuary, to determine the normal cost 
 79.4   and the accrued actuarial liabilities of a benefit plan, 
 79.5   according to the entry age actuarial cost method and based upon 
 79.6   stated assumptions including, but not limited to rates of 
 79.7   interest, mortality, salary increase, disability, withdrawal, 
 79.8   and retirement and to determine the payment necessary to 
 79.9   amortize over a stated period any unfunded accrued actuarial 
 79.10  liability disclosed as a result of the actuarial valuation of 
 79.11  the benefit plan. 
 79.12     (c) "Approved actuary" means a person who is regularly 
 79.13  engaged in the business of providing actuarial services and who 
 79.14  has at least 15 years of service to major public employee 
 79.15  pension or retirement funds or who is a fellow in the society of 
 79.16  actuaries.  
 79.17     (d) "Entry age actuarial cost method" means an actuarial 
 79.18  cost method under which the actuarial present value of the 
 79.19  projected benefits of each individual currently covered by the 
 79.20  benefit plan and included in the actuarial valuation is 
 79.21  allocated on a level basis over the service of the individual, 
 79.22  if the benefit plan is governed by section 69.773, or over the 
 79.23  earnings of the individual, if the benefit plan is governed by 
 79.24  any other law, between the entry age and the assumed exit age, 
 79.25  with the portion of this the actuarial present value which is 
 79.26  allocated to the valuation year to be the normal cost and the 
 79.27  portion of this the actuarial present value not provided for at 
 79.28  the valuation date by the actuarial present value of future 
 79.29  normal costs to be the actuarial accrued liability, with 
 79.30  aggregation in the calculation process to be the sum of the 
 79.31  calculated result for each covered individual and with 
 79.32  recognition given to any different benefit formulas which may 
 79.33  apply to various periods of service. 
 79.34     (e) "Experience study" means a report providing experience 
 79.35  data and an actuarial analysis of the adequacy of the actuarial 
 79.36  assumptions on which actuarial valuations are based. 
 80.1      (f) "Current assets" means: 
 80.2      (1) for the July 1, 1999, actuarial valuation, the value of 
 80.3   all assets at cost, including realized capital gains or losses, 
 80.4   plus one-third of any unrealized capital gains or losses; 
 80.5      (2) for the July 1, 2000, actuarial valuation, the market 
 80.6   value of all assets as of June 30, 2000, reduced by: 
 80.7      (i) 60 percent of the difference between the market value 
 80.8   of all assets as of June 30, 1999, and the actuarial value of 
 80.9   assets used in the July 1, 1999, actuarial valuation, and 
 80.10     (ii) 80 percent of the difference between the actual net 
 80.11  change in the market value of assets between June 30, 1999, and 
 80.12  June 30, 2000, and the computed increase in the market value of 
 80.13  assets between June 30, 1999, and June 30, 2000, if the assets 
 80.14  had increased at the percentage preretirement interest rate 
 80.15  assumption used in the July 1, 1999, actuarial valuation; 
 80.16     (3) for the July 1, 2001, actuarial valuation, the market 
 80.17  value of all assets as of June 30, 2001, reduced by: 
 80.18     (i) 30 percent of the difference between the market value 
 80.19  of all assets as of June 30, 1999, and the actuarial value of 
 80.20  assets used in the July 1, 1999, actuarial valuation; 
 80.21     (ii) 60 percent of the difference between the actual net 
 80.22  change in the market value of assets between June 30, 1999, and 
 80.23  June 30, 2000, and the computed increase in the market value of 
 80.24  assets between June 30, 1999, and June 30, 2000, if the assets 
 80.25  had increased at the percentage preretirement interest rate 
 80.26  assumption used in the July 1, 1999, actuarial valuation; and 
 80.27     (iii) 80 percent of the difference between the actual net 
 80.28  change in the market value of assets between June 30, 2000, and 
 80.29  June 30, 2001, and the computed increase in the market value of 
 80.30  assets between June 30, 2000, and June 30, 2001, if the assets 
 80.31  had increased at the percentage preretirement interest rate 
 80.32  assumption used in the July 1, 2000, actuarial valuation; 
 80.33     (4) (2) for the July 1, 2002, actuarial valuation, the 
 80.34  market value of all assets as of June 30, 2002, reduced by: 
 80.35     (i) ten percent of the difference between the market value 
 80.36  of all assets as of June 30, 1999, and the actuarial value of 
 81.1   assets used in the July 1, 1999, actuarial valuation; 
 81.2      (ii) 40 percent of the difference between the actual net 
 81.3   change in the market value of assets between June 30, 1999, and 
 81.4   June 30, 2000, and the computed increase in the market value of 
 81.5   assets between June 30, 1999, and June 30, 2000, if the assets 
 81.6   had increased at the percentage preretirement interest rate 
 81.7   assumption used in the July 1, 1999, actuarial valuation; 
 81.8      (iii) 60 percent of the difference between the actual net 
 81.9   change in the market value of assets between June 30, 2000, and 
 81.10  June 30, 2001, and the computed increase in the market value of 
 81.11  assets between June 30, 2000, and June 30, 2001, if the assets 
 81.12  had increased at the percentage preretirement interest rate 
 81.13  assumption used in the July 1, 2000, actuarial valuation; and 
 81.14     (iv) 80 percent of the difference between the actual net 
 81.15  change in the market value of assets between June 30, 2001, and 
 81.16  June 30, 2002, and the computed increase in the market value of 
 81.17  assets between June 30, 2001, and June 30, 2002, if the assets 
 81.18  had increased at the percentage preretirement interest rate 
 81.19  assumption used in the July 1, 2001, actuarial valuation; or 
 81.20     (5) (3) for any actuarial valuation after July 1, 2002, the 
 81.21  market value of all assets as of the preceding June 30, reduced 
 81.22  by: 
 81.23     (i) 20 percent of the difference between the actual net 
 81.24  change in the market value of assets between the June 30 that 
 81.25  occurred three years earlier and the June 30 that occurred four 
 81.26  years earlier and the computed increase in the market value of 
 81.27  assets over that fiscal year period if the assets had increased 
 81.28  at the percentage preretirement interest rate assumption used in 
 81.29  the actuarial valuation for the July 1 that occurred four years 
 81.30  earlier; 
 81.31     (ii) 40 percent of the difference between the actual net 
 81.32  change in the market value of assets between the June 30 that 
 81.33  occurred two years earlier and the June 30 that occurred three 
 81.34  years earlier and the computed increase in the market value of 
 81.35  assets over that fiscal year period if the assets had increased 
 81.36  at the percentage preretirement interest rate assumption used in 
 82.1   the actuarial valuation for the July 1 that occurred three years 
 82.2   earlier; 
 82.3      (iii) 60 percent of the difference between the actual net 
 82.4   change in the market value of assets between the June 30 that 
 82.5   occurred one year earlier and the June 30 that occurred two 
 82.6   years earlier and the computed increase in the market value of 
 82.7   assets over that fiscal year period if the assets had increased 
 82.8   at the percentage preretirement interest rate assumption used in 
 82.9   the actuarial valuation for the July 1 that occurred two years 
 82.10  earlier; and 
 82.11     (iv) 80 percent of the difference between the actual net 
 82.12  change in the market value of assets between the immediately 
 82.13  prior June 30 and the June 30 that occurred one year earlier and 
 82.14  the computed increase in the market value of assets over that 
 82.15  fiscal year period if the assets had increased at the percentage 
 82.16  preretirement interest rate assumption used in the actuarial 
 82.17  valuation for the July 1 that occurred one year earlier. 
 82.18     (g) "Unfunded actuarial accrued liability" means the total 
 82.19  current and expected future benefit obligations, reduced by the 
 82.20  sum of current assets and the present value of future normal 
 82.21  costs. 
 82.22     (h) "Pension benefit obligation" means the actuarial 
 82.23  present value of credited projected benefits, determined as the 
 82.24  actuarial present value of benefits estimated to be payable in 
 82.25  the future as a result of employee service attributing an equal 
 82.26  benefit amount, including the effect of projected salary 
 82.27  increases and any step rate benefit accrual rate differences, to 
 82.28  each year of credited and expected future employee service. 
 82.29     Subd. 2.  [REQUIREMENTS.] (a) It is the policy of the 
 82.30  legislature that it is necessary and appropriate to determine 
 82.31  annually the financial status of tax supported retirement and 
 82.32  pension plans for public employees.  To achieve this goal:  
 82.33     (1) the legislative commission on pensions and retirement 
 82.34  shall have prepared by the actuary retained by the commission 
 82.35  annual actuarial valuations of the retirement plans enumerated 
 82.36  in section 3.85, subdivision 11, paragraph (b), and quadrennial 
 83.1   experience studies of the retirement plans enumerated in section 
 83.2   3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7); 
 83.3   and 
 83.4      (2) the commissioner of finance may have prepared by the 
 83.5   actuary retained by the commission, two years after each set of 
 83.6   quadrennial experience studies, quadrennial projection 
 83.7   valuations of at least one of the retirement plans enumerated in 
 83.8   section 3.85, subdivision 11, paragraph (b), for which the 
 83.9   commissioner determines that the analysis may be beneficial.  
 83.10     (b) The governing or managing board or administrative 
 83.11  officials of each public pension and retirement fund or plan 
 83.12  enumerated in section 356.20, subdivision 2, clauses (9), (10), 
 83.13  and (12), shall have prepared by an approved actuary annual 
 83.14  actuarial valuations of their respective funds as provided in 
 83.15  this section.  This requirement also applies to any fund or plan 
 83.16  that is the successor to any organization enumerated in section 
 83.17  356.20, subdivision 2, or to the governing or managing board or 
 83.18  administrative officials of any newly formed retirement fund, 
 83.19  plan, or association operating under the control or supervision 
 83.20  of any public employee group, governmental unit, or institution 
 83.21  receiving a portion of its support through legislative 
 83.22  appropriations, and any local police or fire fund coming within 
 83.23  the provisions of to which section 356.216 applies. 
 83.24     Subd. 2a.  [PROJECTION VALUATION REQUIREMENTS.] (a) A 
 83.25  quadrennial projection valuation required authorized under 
 83.26  subdivision 2 is intended to serve as an additional analytical 
 83.27  tool with which policy makers may assess the future funding 
 83.28  status of public plans through forecasting and testing various 
 83.29  potential outcomes over time if certain plan assumptions or 
 83.30  valuation methods were to be modified.  
 83.31     (b) In consultation with the retirement fund directors, the 
 83.32  state economist, the state demographer, the commissioner of 
 83.33  finance, and the commissioner of employee relations, the actuary 
 83.34  retained by the legislative commission on pensions and 
 83.35  retirement shall perform the quadrennial projection valuations 
 83.36  on behalf of the commissioner of finance, testing future 
 84.1   implications for plan funding by modifying assumptions and 
 84.2   methods currently in place.  The commission-retained actuary 
 84.3   shall provide advice to the commissioner as to the periods over 
 84.4   which such projections should be made, the nature and scope of 
 84.5   the scenarios to be analyzed, and the measures of funding status 
 84.6   to be employed, and shall report the results of these analyses 
 84.7   in the same manner as for quadrennial experience studies. 
 84.8      Subd. 3.  [REPORTS.] (a) The actuarial valuations required 
 84.9   annually must be made as of the beginning of each fiscal year.  
 84.10     (b) Two copies of the valuation must be delivered to the 
 84.11  executive director of the legislative commission on pensions and 
 84.12  retirement, to the commissioner of finance and to the 
 84.13  legislative reference library, not later than the first day of 
 84.14  the sixth month occurring after the end of the previous fiscal 
 84.15  year.  
 84.16     (c) Two copies of a quadrennial experience study must be 
 84.17  filed with the executive director of the legislative commission 
 84.18  on pensions and retirement, with the commissioner of finance, 
 84.19  and with the legislative reference library, not later than the 
 84.20  first day of the 11th month occurring after the end of the last 
 84.21  fiscal year of the four-year period which the experience study 
 84.22  covers.  
 84.23     (d) For actuarial valuations and experience studies 
 84.24  prepared at the direction of the legislative commission on 
 84.25  pensions and retirement, two copies of the document must be 
 84.26  delivered to the governing or managing board or administrative 
 84.27  officials of the applicable public pension and retirement fund 
 84.28  or plan. 
 84.29     Subd. 4.  [ACTUARIAL VALUATION; CONTENTS.] (a) The 
 84.30  actuarial valuation must be made in conformity with the 
 84.31  requirements of the definition contained in subdivision 1 and 
 84.32  the most recent standards for actuarial work adopted by the 
 84.33  legislative commission on pensions and retirement.  
 84.34     (b) The actuarial valuation must measure all aspects of the 
 84.35  benefit plan of the fund in accordance with changes in benefit 
 84.36  plans, if any, and salaries reasonably anticipated to be in 
 85.1   force during the ensuing fiscal year.  The actuarial valuation 
 85.2   must be prepared in accordance with the entry age actuarial cost 
 85.3   method.  The actuarial valuation required under this section 
 85.4   must include the information required in subdivisions 4a 5 to 4k 
 85.5   15. 
 85.6      Subd. 4a 5.  [NORMAL COST.] For a fund providing benefits 
 85.7   in whole or in part under a defined benefit plan, the actuarial 
 85.8   valuation must indicate the level normal cost of the benefits 
 85.9   provided by under the laws governing the fund as of the date of 
 85.10  the valuation, calculated in accordance with the entry age 
 85.11  actuarial cost method.  The normal cost must be expressed as a 
 85.12  level percentage of the present value of future payrolls of the 
 85.13  active participants of the fund as of the date of the valuation. 
 85.14     Subd. 4b 6.  [ACCRUED LIABILITY.] For a fund providing 
 85.15  benefits under a defined benefit plan, the actuarial valuation 
 85.16  must contain an exhibit indicating the actuarial accrued 
 85.17  liabilities of the fund.  This figure is the present value of 
 85.18  future benefits, reduced by the present value of future normal 
 85.19  costs, calculated in accordance with the entry age actuarial 
 85.20  cost method. 
 85.21     Subd. 4c 7.  [DEFINED CONTRIBUTION PLAN ACCUMULATIONS.] For 
 85.22  each fund providing benefits under the a money purchase or 
 85.23  defined contribution plan, the actuarial valuation shall must 
 85.24  contain an exhibit indicating the member contributions 
 85.25  accumulated at interest, as apportioned to members accounts, to 
 85.26  the date of the valuation.  These accumulations shall must be 
 85.27  separately tabulated in a manner which properly reflects any 
 85.28  differences in money purchase or defined contribution annuity 
 85.29  rates which may apply. 
 85.30     Subd. 4d 8.  [INTEREST AND SALARY ASSUMPTIONS.] (a) The 
 85.31  actuarial valuation must use the applicable following 
 85.32  preretirement interest assumption and the applicable following 
 85.33  postretirement interest assumption: 
 85.34                                     preretirement  postretirement 
 85.35                                     interest rate  interest rate 
 85.36              plan                      assumption     assumption 
 85.37       general state employees 
 85.38           retirement plan                  8.5%          6.0% 
 86.1        correctional state employees 
 86.2            retirement plan                  8.5           6.0 
 86.3        state patrol retirement plan         8.5           6.0 
 86.4        legislators retirement plan          8.5           6.0 
 86.5        elective state officers
 86.6            retirement plan                  8.5           6.0 
 86.7        judges retirement plan               8.5           6.0 
 86.8        general public employees 
 86.9            retirement plan                  8.5           6.0 
 86.10       public employees police and fire 
 86.11           retirement plan                  8.5           6.0 
 86.12       local government correctional 
 86.13           service retirement plan          8.5           6.0 
 86.14       teachers retirement plan             8.5           6.0 
 86.15       Minneapolis employees 
 86.16           retirement plan                  6.0           5.0 
 86.17       Duluth teachers retirement plan      8.5           8.5 
 86.18       Minneapolis teachers retirement
 86.19           plan                             8.5           8.5 
 86.20       St. Paul teachers retirement 
 86.21           plan                             8.5           8.5 
 86.22       Minneapolis police relief 
 86.23           association                      6.0           6.0 
 86.24       other local Fairmont police relief 
 86.25           associations association         5.0           5.0 
 86.26       Minneapolis fire department 
 86.27           relief association               6.0           6.0 
 86.28       other local salaried firefighters 
 86.29       Virginia fire department
 86.30       relief associations association      5.0           5.0 
 86.31       local monthly benefit volunteer 
 86.32           firefighters relief associations 5.0           5.0 
 86.33     (b) The actuarial valuation must use the applicable 
 86.34  following single rate future salary increase assumption, the 
 86.35  applicable following modified single rate future salary increase 
 86.36  assumption, or the applicable following graded rate future 
 86.37  salary increase assumption: 
 86.38     (1) single rate future salary increase assumption 
 86.39                                              future salary 
 86.40              plan                          increase assumption 
 86.41       legislators retirement plan                  5.0% 
 86.42       elective state officers retirement 
 86.43           plan                                     5.0 
 86.44       judges retirement plan                       5.0 
 86.45       Minneapolis police relief association        4.0 
 86.46       other local Fairmont police relief 
 86.47       associations association                     3.5 
 86.48       Minneapolis fire department relief 
 86.49           association                              4.0 
 86.50       other local salaried firefighters  
 86.51           Virginia fire department
 86.52           relief associations association          3.5 
 86.53     (2) modified single rate future salary increase assumption 
 86.54                                              future salary 
 86.55                 plan                       increase assumption
 86.56           Minneapolis employees        the prior calendar year 
 86.57             retirement plan            amount increased first by 
 86.58                                        1.0198 percent to prior 
 86.59                                        fiscal year date and
 86.60                                        then increased by 4.0 
 86.61                                        percent annually for
 86.62                                        each future year
 87.1      (3) select and ultimate future salary increase assumption 
 87.2   or graded rate future salary increase assumption 
 87.3                                                future salary 
 87.4                  plan                       increase assumption 
 87.5        general state employees             select calculation and
 87.6            retirement plan                      assumption A 
 87.7        correctional state employees 
 87.8            retirement plan                      assumption H 
 87.9        state patrol retirement plan             assumption H 
 87.10       general public employees            select calculation and
 87.11           retirement plan                      assumption B 
 87.12       public employees police and fire 
 87.13           fund retirement plan                 assumption C 
 87.14       local government correctional service 
 87.15           retirement plan                      assumption H 
 87.16       teachers retirement plan                 assumption D 
 87.17       Duluth teachers retirement plan          assumption E 
 87.18       Minneapolis teachers retirement plan     assumption F 
 87.19       St. Paul teachers retirement plan        assumption G 
 87.20       
 87.21       The select calculation is:
 87.22       during the ten-year select period, 0.2 a designated percent
 87.23       is multiplied by the result of ten minus T, where T is 
 87.24       the number of completed years of service, and is added
 87.25       to the applicable future salary increase assumption.  The
 87.26       designated percent is 0.2 percent for the correctional state
 87.27       employees retirement plan, the state patrol retirement
 87.28       plan, the public employees police and fire plan, and the
 87.29       local government correctional service plan; 0.3 percent
 87.30       for the general state employees retirement plan, the
 87.31       general public employees retirement plan, the teachers
 87.32       retirement plan, the Duluth teachers retirement fund
 87.33       association, and the Saint Paul teachers retirement fund
 87.34       association; and 0.4 percent for the Minneapolis teachers
 87.35       retirement fund association.
 87.36       
 87.37            The ultimate future salary increase assumption is:
 87.38       
 87.39       age  A     B      C     D     E     F     G      H 
 87.40       16  6.95% 6.95% 11.50% 8.20% 8.00% 7.50% 7.25% 7.7500
 87.41                                          6.50  6.90 
 87.42       17  6.90  6.90  11.50  8.15  8.00  7.50  7.25  7.7500
 87.43                                          6.50  6.90
 87.44       18  6.85  6.85  11.50  8.10  8.00  7.50  7.25  7.7500
 87.45                                          6.50  6.90
 87.46       19  6.80  6.80  11.50  8.05  8.00  7.50  7.25  7.7500
 87.47                                          6.50  6.90
 87.48       20  6.75  6.75  11.50  8.00  8.00  7.50  7.25  7.7500
 87.49                 6.40         6.00  6.90  6.50  6.90
 87.50       21  6.70  6.70  11.50  7.95  8.00  7.50  7.25  7.1454
 87.51           6.75  6.40         6.00  6.90  6.50  6.90
 87.52       22  6.65  6.65  11.00  7.90  8.00  7.50  7.25  7.0725
 87.53           6.75  6.40         6.00  6.90  6.50  6.90
 87.54       23  6.75  6.40  10.50  6.00  6.85  6.50  6.85  7.0544
 87.55       24  6.66  6.55  10.00  7.80  7.80  7.30  7.20  7.0363
 87.56           6.75  6.40         6.00  6.80  6.50  6.80
 87.57       25  6.50  6.50   9.50  7.75  7.70  7.20  7.15  7.0000 
 87.58           6.75  6.40         6.00  6.75  6.50  6.75 
 87.59       26  6.45  6.45   9.20  7.70  7.60  7.10  7.10  7.0000
 87.60           6.75  6.36         6.00  6.70  6.50  6.70
 87.61       27  6.40  6.40   8.90  7.65  7.50  7.00  7.05  7.0000 
 87.62           6.75  6.32         6.00  6.65  6.50  6.65
 87.63       28  6.35  6.35   8.60  7.60  7.40  6.90  7.00  7.0000
 87.64           6.75  6.28         6.00  6.60  6.50  6.60
 87.65       29  6.30  6.30   8.30  7.55  7.30  6.80  6.95  7.0000
 87.66           6.75  6.24         6.00  6.55  6.50  6.55
 87.67       30  6.25  6.30   8.00  7.50  7.20  6.70  6.90  7.0000
 87.68           6.75  6.20         6.00  6.50  6.50  6.50
 88.1        31  6.20  6.25   7.80  7.45  7.10  6.60  6.85  7.0000
 88.2            6.75  6.16         6.00  6.45  6.50  6.45
 88.3        32  6.15  6.21   7.60  7.40  7.00  6.50  6.80  7.0000
 88.4            6.75  6.12         6.00  6.40  6.50  6.40
 88.5        33  6.10  6.17   7.40  7.30  6.90  6.40  6.75  7.0000
 88.6            6.75  6.08         6.00  6.35  6.50  6.35
 88.7        34  6.05  6.09   7.20  7.10  6.80  6.30  6.70  7.0000
 88.8            6.75  6.04         6.00  6.30  6.50  6.30
 88.9        35  6.00  6.05   7.00  7.00  6.70  6.20  6.65  7.0000
 88.10           6.75  6.00         6.00  6.25  6.50  6.25
 88.11       36  6.95  6.01   6.80  6.85  6.60  6.10  6.60  6.9019
 88.12           6.75  5.96         6.00  6.20  6.50  6.20
 88.13       37  5.90  5.97   6.60  6.70  6.50  6.00  6.55  6.8074
 88.14           6.75  5.92         6.00  6.15  6.50  6.15
 88.15       38  5.85  5.93   6.40  6.55  6.40  5.90  6.50  6.7125
 88.16           6.75  5.88         5.90  6.10  6.50  6.10
 88.17       39  5.80  5.89   6.20  6.40  6.30  5.80  6.40  6.6054
 88.18           6.75  5.84         5.80  6.05  6.50  6.05
 88.19       40  5.75  5.85   6.00  6.25  6.20  5.70  6.30  6.5000
 88.20           6.75  5.80         5.70  6.00  6.50  6.00
 88.21       41  5.70  5.81   5.90  6.10  6.10  5.60  6.20  6.3540
 88.22           6.75  5.76         5.60  5.90  6.50  5.95
 88.23       42  5.65  5.77   5.80  5.95  6.00  5.50  6.10  6.2087
 88.24           6.75  5.72         5.50  5.80  6.50  5.90
 88.25       43  5.60  5.73   5.70  5.80  5.90  5.45  6.00  6.0622
 88.26           6.65  5.68         5.40  5.70  6.50  5.85
 88.27       44  5.55  5.69   5.60  5.65  5.80  5.40  5.90  5.9048
 88.28           6.55  5.64         5.30  5.60  6.50  5.80
 88.29       45  5.50  5.65   5.50  5.50  5.70  5.35  5.80  5.7500
 88.30           6.45  5.60         5.20  5.50  6.50  5.75
 88.31       46  5.45  5.62   5.45  5.45  5.60  5.30  5.70  5.6940
 88.32           6.35  5.56         5.10  5.40  6.40  5.70
 88.33       47  5.40  5.59   5.40  5.40  5.50  5.25  5.65  5.6375
 88.34           6.25  5.52         5.00  5.30  6.30
 88.35       48  5.35  5.56   5.35  5.35  5.45  5.20  5.60  5.5822
 88.36           6.15  5.48         5.00  5.20  6.20
 88.37       49  5.30  5.53   5.30  5.30  5.40  5.15  5.55  5.5404
 88.38           6.05  5.44         5.00  5.10  6.10
 88.39       50  5.25  5.50   5.25  5.25  5.35  5.10  5.50  5.5000
 88.40           5.95  5.40         5.00  5.00  6.00
 88.41       51  5.20  5.45   5.25  5.20  5.30  5.05  5.45  5.4384
 88.42           5.85  5.36         5.00  5.00  5.90
 88.43       52  5.15  5.40   5.25  5.15  5.25  5.00  5.40  5.3776
 88.44           5.75  5.32         5.00  5.00  5.80
 88.45       53  5.10  5.35   5.25  5.10  5.25  5.00  5.35  5.3167
 88.46           5.65  5.28         5.00  5.00  5.70
 88.47       54  5.05  5.30   5.25  5.05  5.25  5.00  5.30  5.2826
 88.48           5.55  5.24         5.00  5.00  5.60
 88.49       55  5.00  5.25   5.25  5.00  5.25  5.00  5.25  5.2500 
 88.50           5.45  5.20               5.00  5.50
 88.51       56  5.00  5.20   5.25  5.00  5.25  5.00  5.25  5.2500
 88.52           5.35  5.16               5.00  5.40  5.20
 88.53       57  5.00  5.15   5.25  5.00  5.25  5.00  5.25  5.2500
 88.54           5.25  5.12               5.00  5.30  5.15
 88.55       58  5.00  5.10   5.25  5.00  5.25  5.00  5.25  5.2500
 88.56           5.25  5.08         5.10  5.00  5.20  5.10
 88.57       59  5.00  5.05   5.25  5.00  5.25  5.00  5.25  5.2500
 88.58           5.25  5.04         5.20  5.00  5.10  5.05
 88.59       60  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 88.60           5.25               5.30  5.00        5.00
 88.61       61  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 88.62           5.25               5.40  5.00        5.00
 88.63       62  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 88.64           5.25               5.50  5.00        5.00
 88.65       63  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 88.66           5.25               5.60  5.00        5.00
 88.67       64  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 88.68           5.25               5.70  5.00        5.00
 88.69       65  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 88.70           5.25               5.70  5.00        5.00
 88.71       66  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 89.1            5.25               5.70  5.00        5.00
 89.2        67  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 89.3            5.25               5.70  5.00        5.00
 89.4        68  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 89.5            5.25               5.70  5.00        5.00
 89.6        69  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 89.7            5.25               5.70  5.00        5.00
 89.8        70  5.00  5.00   5.25  5.00  5.25  5.00  5.25  5.2500
 89.9            5.25               5.70  5.00        5.00
 89.10       71  5.00  5.00         5.00
 89.11           5.25               5.70
 89.12     (c) The actuarial valuation must use the applicable 
 89.13  following payroll growth assumption for calculating the 
 89.14  amortization requirement for the unfunded actuarial accrued 
 89.15  liability where the amortization retirement is calculated as a 
 89.16  level percentage of an increasing payroll: 
 89.17                                                   payroll growth
 89.18                    plan                             assumption 
 89.19       general state employees retirement plan          5.00% 
 89.20       correctional state employees retirement plan     5.00 
 89.21       state patrol retirement plan                     5.00 
 89.22       legislators retirement plan                      5.00 
 89.23       elective state officers retirement plan          5.00 
 89.24       judges retirement plan                           5.00 
 89.25       general public employees retirement plan         6.00 
 89.26       public employees police and fire 
 89.27           retirement plan                              6.00 
 89.28       local government correctional service 
 89.29           retirement plan                              6.00 
 89.30       teachers retirement plan                         5.00 
 89.31       Duluth teachers retirement plan                  5.00 
 89.32       Minneapolis teachers retirement plan             5.00 
 89.33       St. Paul teachers retirement plan                5.00 
 89.35     Subd. 4e 9.  [OTHER ASSUMPTIONS.] The actuarial valuation 
 89.36  must use assumptions concerning mortality, disability, 
 89.37  retirement, withdrawal, retirement age, and any other relevant 
 89.38  demographic or economic factor.  These assumptions must be set 
 89.39  at levels consistent with those determined in the most recent 
 89.40  quadrennial experience study completed under subdivision 5 16, 
 89.41  if required, or representative of the best estimate of future 
 89.42  experience, if a quadrennial experience study is not required.  
 89.43  The actuarial valuation must contain an exhibit indicating any 
 89.44  actuarial assumptions used in preparing the valuation report. 
 89.45     Subd. 4f 10.  [PUBLIC SECTOR ACCOUNTING DISCLOSURE 
 89.46  INFORMATION.] The actuarial valuation must contain those 
 89.47  actuarial calculations that are necessary to allow the 
 89.48  retirement plan administration or participating employing units 
 89.49  to prepare the pension-related portions of annual financial 
 90.1   reporting that meet generally accepted accounting principles for 
 90.2   the public sector.  
 90.3      Subd. 4g 11.  [AMORTIZATION CONTRIBUTIONS.] (a) In addition 
 90.4   to the exhibit indicating the level normal cost, the actuarial 
 90.5   valuation must contain an exhibit indicating the additional 
 90.6   annual contribution sufficient to amortize the unfunded 
 90.7   actuarial accrued liability.  For funds governed by chapters 3A, 
 90.8   352, 352B, 352C, 353, 354, 354A, and 490, the additional 
 90.9   contribution must be calculated on a level percentage of covered 
 90.10  payroll basis by the established date for full funding in effect 
 90.11  when the valuation is prepared.  For funds governed by chapter 
 90.12  3A, sections 352.90 through 352.951, chapters 352B, 352C, 
 90.13  sections 353.63 through 353.68, and chapters 353C, 354A, and 
 90.14  490, the level percent additional contribution must be 
 90.15  calculated assuming annual payroll growth of 6.5 percent.  For 
 90.16  funds governed by sections 352.01 through 352.86 and chapter 
 90.17  354, the level percent additional contribution must be 
 90.18  calculated assuming an annual payroll growth of five percent.  
 90.19  For the fund governed by sections 353.01 through 353.46, the 
 90.20  level percent additional contribution must be calculated 
 90.21  assuming an annual payroll growth of six percent.  For all other 
 90.22  funds, the additional annual contribution must be calculated on 
 90.23  a level annual dollar amount basis. 
 90.24     (b) For any fund other than the Minneapolis employees 
 90.25  retirement fund and the public employees retirement association 
 90.26  general plan, if there has not been a change in the actuarial 
 90.27  assumptions used for calculating the actuarial accrued liability 
 90.28  of the fund, a change in the benefit plan governing annuities 
 90.29  and benefits payable from the fund, a change in the actuarial 
 90.30  cost method used in calculating the actuarial accrued liability 
 90.31  of all or a portion of the fund, or a combination of the three, 
 90.32  which change or changes by itself or by themselves without 
 90.33  inclusion of any other items of increase or decrease produce a 
 90.34  net increase in the unfunded actuarial accrued liability of the 
 90.35  fund, the established date for full funding is the first 
 90.36  actuarial valuation date occurring after June 1, 2020.  
 91.1      (c) For any fund or plan other than the Minneapolis 
 91.2   employees retirement fund and the public employees retirement 
 91.3   association general plan, if there has been a change in any or 
 91.4   all of the actuarial assumptions used for calculating the 
 91.5   actuarial accrued liability of the fund, a change in the benefit 
 91.6   plan governing annuities and benefits payable from the fund, a 
 91.7   change in the actuarial cost method used in calculating the 
 91.8   actuarial accrued liability of all or a portion of the fund, or 
 91.9   a combination of the three, and the change or changes, by itself 
 91.10  or by themselves and without inclusion of any other items of 
 91.11  increase or decrease, produce a net increase in the unfunded 
 91.12  actuarial accrued liability in the fund, the established date 
 91.13  for full funding must be determined using the following 
 91.14  procedure:  
 91.15     (i) the unfunded actuarial accrued liability of the fund 
 91.16  must be determined in accordance with the plan provisions 
 91.17  governing annuities and retirement benefits and the actuarial 
 91.18  assumptions in effect before an applicable change; 
 91.19     (ii) the level annual dollar contribution or level 
 91.20  percentage, whichever is applicable, needed to amortize the 
 91.21  unfunded actuarial accrued liability amount determined under 
 91.22  item (i) by the established date for full funding in effect 
 91.23  before the change must be calculated using the interest 
 91.24  assumption specified in subdivision 4d 8 in effect before the 
 91.25  change; 
 91.26     (iii) the unfunded actuarial accrued liability of the fund 
 91.27  must be determined in accordance with any new plan provisions 
 91.28  governing annuities and benefits payable from the fund and any 
 91.29  new actuarial assumptions and the remaining plan provisions 
 91.30  governing annuities and benefits payable from the fund and 
 91.31  actuarial assumptions in effect before the change; 
 91.32     (iv) the level annual dollar contribution or level 
 91.33  percentage, whichever is applicable, needed to amortize the 
 91.34  difference between the unfunded actuarial accrued liability 
 91.35  amount calculated under item (i) and the unfunded actuarial 
 91.36  accrued liability amount calculated under item (iii) over a 
 92.1   period of 30 years from the end of the plan year in which the 
 92.2   applicable change is effective must be calculated using the 
 92.3   applicable interest assumption specified in subdivision 4d 8 in 
 92.4   effect after any applicable change; 
 92.5      (v) the level annual dollar or level percentage 
 92.6   amortization contribution under item (iv) must be added to the 
 92.7   level annual dollar amortization contribution or level 
 92.8   percentage calculated under item (ii); 
 92.9      (vi) the period in which the unfunded actuarial accrued 
 92.10  liability amount determined in item (iii) is amortized by the 
 92.11  total level annual dollar or level percentage amortization 
 92.12  contribution computed under item (v) must be calculated using 
 92.13  the interest assumption specified in subdivision 4d 8 in effect 
 92.14  after any applicable change, rounded to the nearest integral 
 92.15  number of years, but not to exceed 30 years from the end of the 
 92.16  plan year in which the determination of the established date for 
 92.17  full funding using the procedure set forth in this clause is 
 92.18  made and not to be less than the period of years beginning in 
 92.19  the plan year in which the determination of the established date 
 92.20  for full funding using the procedure set forth in this clause is 
 92.21  made and ending by the date for full funding in effect before 
 92.22  the change; and 
 92.23     (vii) the period determined under item (vi) must be added 
 92.24  to the date as of which the actuarial valuation was prepared and 
 92.25  the date obtained is the new established date for full funding.  
 92.26     (d) For the Minneapolis employees retirement fund, the 
 92.27  established date for full funding is June 30, 2020. 
 92.28     (e) For the general employees retirement plan of the public 
 92.29  employees retirement association general plan, the established 
 92.30  date for full funding is June 30, 2031. 
 92.31     (f) For the retirement plans for which the annual actuarial 
 92.32  valuation indicates an excess of valuation assets over the 
 92.33  actuarial accrued liability, the valuation assets in excess of 
 92.34  the actuarial accrued liability must be recognized as a 
 92.35  reduction in the current contribution requirements by an amount 
 92.36  equal to the amortization of the excess expressed as a level 
 93.1   percentage of pay over a 30-year period beginning anew with each 
 93.2   annual actuarial valuation of the plan. 
 93.3      Subd. 4h 12.  [ACTUARIAL GAINS AND LOSSES.] The actuarial 
 93.4   valuation must contain an exhibit consisting of an analysis by 
 93.5   the actuary explaining the net increase or decrease in the 
 93.6   unfunded actuarial accrued liability since the last valuation.  
 93.7   The explanation must subdivide the net increase or decrease in 
 93.8   the unfunded actuarial accrued liability into at least the 
 93.9   following parts: 
 93.10     (a) (1) increases or decreases in the unfunded actuarial 
 93.11  accrued liability because of changes in benefits; 
 93.12     (b) (2) increases and decreases in the unfunded actuarial 
 93.13  accrued liability because of changes in actuarial assumptions; 
 93.14     (c) (3) increases or decreases in the unfunded actuarial 
 93.15  accrued liability attributable to actuarial gains or losses 
 93.16  resulting from any experience deviations from the assumptions on 
 93.17  which the valuation is based, as follows: 
 93.18     (i) actual investment earnings; 
 93.19     (ii) actual postretirement mortality rates; 
 93.20     (iii) actual salary increase rates; and 
 93.21     (iv) the remainder of the increase or decrease not 
 93.22  attributable to any separate source; 
 93.23     (d) (4) increases or decreases in unfunded actuarial 
 93.24  accrued liability because of other reasons, including the effect 
 93.25  of any amortization contribution paid or additional amortization 
 93.26  contribution previously calculated but unpaid; and 
 93.27     (e) (5) increases or decreases in unfunded actuarial 
 93.28  accrued liability because of changes in eligibility requirements 
 93.29  or groups included in the membership of the fund. 
 93.30     Subd. 4i 13.  [MEMBERSHIP TABULATION.] (a) The actuarial 
 93.31  valuation must contain a tabulation of active membership and 
 93.32  annuitants in the fund.  If the membership of a fund is under 
 93.33  more than one general benefit program, a separate tabulation 
 93.34  must be made for each general benefit program.  
 93.35     (b) The tabulations must be prepared by the administration 
 93.36  of the pension fund and must contain the following information: 
 94.1   (1) Active members                               Number 
 94.2        As of last valuation date
 94.3                  New entrants
 94.4              Total 
 94.5        Separations from active service
 94.6        Refund of contributions
 94.7        Separation with deferred annuity
 94.8        Separation with neither refund
 94.9             nor deferred annuity
 94.10       Disability
 94.11       Death
 94.12       Retirement with service annuity
 94.13       Total separations
 94.14       As of current valuation date                            
 94.15  (2) Annuitants                                   Number          
 94.16       As of last valuation date
 94.17       New entrants
 94.18       Total
 94.19       Terminations
 94.20       Deaths
 94.21       Other
 94.22       Total terminations
 94.23       As of current valuation date
 94.24     (c) The tabulation required under paragraph (b), clause 
 94.25  (2), must be made separately for each of the following classes 
 94.26  of benefit recipients: 
 94.27     (1) service retirement annuitants; 
 94.28     (2) disability benefit recipients; 
 94.29     (3) survivor benefit recipients; and 
 94.30     (4) deferred annuitants. 
 94.31     Subd. 4j 14.  [ADMINISTRATIVE EXPENSES.] (a) The actuarial 
 94.32  valuation must indicate the administrative expenses of the fund, 
 94.33  expressed both in dollars and as a percentage of covered payroll.
 94.34     (b) Administrative expenses are the costs incurred by the 
 94.35  retirement plans in the course of operating the plan, excluding 
 94.36  investment expenses.  Investment expenses include all expenses 
 95.1   incurred for the retention of professional external investment 
 95.2   managers and professional investment consultants, custodian bank 
 95.3   fees, investment transaction costs, and the costs incurred by 
 95.4   the retirement plans to manage investment portfolios or assets 
 95.5   internally.  Investment expenses must be deducted from the 
 95.6   investment return used in the actuarial valuation, and must not 
 95.7   be included in administrative expenses when calculating the 
 95.8   allowance for expenses. 
 95.9      Subd. 4k 15.  [BENEFIT PLAN SUMMARY.] The actuarial 
 95.10  valuation must contain a summary of the principal provisions of 
 95.11  the benefit plan upon which the valuation is based. 
 95.12     Subd. 5 16.  [QUADRENNIAL EXPERIENCE STUDY; CONTENTS.] A 
 95.13  quadrennial experience study, if required, must contain an 
 95.14  actuarial analysis by the approved actuary of the experience of 
 95.15  the fund and a comparison of the experience with the actuarial 
 95.16  assumptions on which the most recent actuarial valuation of the 
 95.17  retirement fund was based. 
 95.18     Subd. 6 17.  [ACTUARIAL SERVICES BY APPROVED ACTUARIES.] 
 95.19  (a) The actuarial valuation or quadrennial experience study must 
 95.20  be made and any actuarial consulting services for a retirement 
 95.21  fund or plan must be provided by an approved actuary.  The 
 95.22  actuarial valuation or quadrennial experience study must include 
 95.23  a signed written declaration that it has been prepared according 
 95.24  to sections 356.20 to 356.23 and according to the most recent 
 95.25  standards for actuarial work adopted by the legislative 
 95.26  commission on pensions and retirement.  
 95.27     (b) Actuarial valuations, or experience studies prepared by 
 95.28  an approved actuary retained by a retirement fund or plan must 
 95.29  be submitted to the legislative commission on pensions and 
 95.30  retirement within ten days of the submission of the document to 
 95.31  the retirement fund or plan. 
 95.32     Subd. 7 18.  [ESTABLISHMENT OF ACTUARIAL ASSUMPTIONS.] (a) 
 95.33  The actuarial assumptions used for the preparation of actuarial 
 95.34  valuations under this section that are other than those set 
 95.35  forth in this section may be changed only with the approval of 
 95.36  the legislative commission on pensions and retirement.  
 96.1      (b) A change in the applicable actuarial assumptions may be 
 96.2   proposed by the governing board of the applicable pension fund 
 96.3   or relief association, by the actuary retained by the 
 96.4   legislative commission on pensions and retirement, by the 
 96.5   actuarial advisor to a pension fund governed by chapter 352, 
 96.6   353, 354, or 354A, or by the actuary retained by a local police 
 96.7   or firefighters relief association governed by sections 69.77 or 
 96.8   69.771 to 69.776, if one is retained. 
 96.9      Sec. 8.  Minnesota Statutes 2000, section 356.216, is 
 96.10  amended to read: 
 96.11     356.216 [CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE 
 96.12  AND FIRE FUNDS.] 
 96.13     (a) The provisions of section 356.215 governing that govern 
 96.14  the contents of actuarial valuations shall must apply to any 
 96.15  local police or fire pension fund or relief association required 
 96.16  to make an actuarial report under this section, except as 
 96.17  follows: 
 96.18     (1) in calculating normal cost and other requirements, if 
 96.19  required to be expressed as a level percentage of covered 
 96.20  payroll, the salaries used in computing covered payroll shall 
 96.21  must be the maximum rate of salary from on which retirement and 
 96.22  survivorship credits and amounts of benefits are determined and 
 96.23  from which any member contributions are calculated and deducted; 
 96.24     (2) in lieu of the amortization date specified in section 
 96.25  356.215, subdivision 4g 11, the appropriate amortization target 
 96.26  date specified in section 69.77, subdivision 2b, or 69.773, 
 96.27  subdivision 4, clause (c), shall must be used in calculating any 
 96.28  required amortization contribution; 
 96.29     (3) in addition to the tabulation of active members and 
 96.30  annuitants provided for in section 356.215, subdivision 4i 13, 
 96.31  the member contributions for active members for the calendar 
 96.32  year and the prospective annual retirement annuities under the 
 96.33  benefit plan for active members shall must be reported; 
 96.34     (4) actuarial valuations required pursuant to under section 
 96.35  69.773, subdivision 2, shall must be made at least every four 
 96.36  years and actuarial valuations required pursuant to under 
 97.1   section 69.77 shall be made annually; and 
 97.2      (5) the actuarial balance sheet showing accrued assets 
 97.3   valued at market value if the actuarial valuation is required to 
 97.4   be prepared at least every four years or valued as current 
 97.5   assets under section 356.215, subdivision 1, clause (6), or 
 97.6   paragraph (b), whichever applies, if the actuarial valuation is 
 97.7   required to be prepared annually, actuarial accrued liabilities, 
 97.8   and the unfunded actuarial accrued liability shall must include 
 97.9   the following required reserves: 
 97.10       (a) (i) For active members 
 97.11        1.  Retirement benefits 
 97.12        2.  Disability benefits 
 97.13        3.  Refund liability due to death or withdrawal 
 97.14        4.  Survivors' benefits 
 97.15       (b) (ii) For deferred annuitants' benefits 
 97.16       (c) (iii) For former members without vested rights 
 97.17       (d) (iv) For annuitants 
 97.18        1.  Retirement annuities 
 97.19        2.  Disability annuities 
 97.20        3.  Surviving spouses' annuities 
 97.21        4.  Surviving children's annuities 
 97.22     In addition to those required reserves, separate items 
 97.23  shall must be shown for additional benefits, if any, which may 
 97.24  not be appropriately included in the reserves listed above.; and 
 97.25     (6) actuarial valuations shall be are due by the first day 
 97.26  of the seventh month after the end of the fiscal year which the 
 97.27  actuarial valuation covers. 
 97.28     (b) For a relief association in a city of the first class 
 97.29  with a population of more than 300,000, the following provisions 
 97.30  additionally apply: 
 97.31     (1) in calculating the actuarial balance sheet, unfunded 
 97.32  actuarial accrued liability, and amortization contribution of 
 97.33  the relief association, "current assets" means the value of all 
 97.34  assets at cost, including realized capital gains and losses, 
 97.35  plus or minus, whichever applies, the average value of total 
 97.36  unrealized capital gains or losses for the most recent 
 98.1   three-year period ending with the end of the plan year 
 98.2   immediately preceding the actuarial valuation report 
 98.3   transmission date; and 
 98.4      (2) in calculating the applicable portions of the actuarial 
 98.5   valuation, an annual preretirement interest assumption of six 
 98.6   percent, an annual postretirement interest assumption of six 
 98.7   percent, and an annual salary increase assumption of four 
 98.8   percent must be used. 
 98.9      Sec. 9.  Minnesota Statutes 2000, section 356.217, is 
 98.10  amended to read: 
 98.11     356.217 [MODIFICATIONS IN ACTUARIAL SERVICES.] 
 98.12     (a) The cost of any requested benefit projections prepared 
 98.13  by the commission-retained actuary relating to the Minnesota 
 98.14  postretirement investment fund for at the request of the state 
 98.15  board of investment is payable by the state board of investment. 
 98.16     (b) Actuarial valuations under section 356.215, for July 1, 
 98.17  1991, and thereafter, are not required to have an individual 
 98.18  commentary section.  The commentary section, if omitted from the 
 98.19  individual plan actuarial valuation valuations, must be included 
 98.20  in an appropriate generalized format as part of the report to 
 98.21  the legislature under section 3.85, subdivision 11. 
 98.22     (c) Actuarial valuations under section 356.215, for July 1, 
 98.23  1991, and thereafter, are not required to contain separate 
 98.24  actuarial valuation results for basic and coordinated programs 
 98.25  unless each program has a membership of at least ten percent of 
 98.26  the total membership of the fund.  Actuarial valuations under 
 98.27  section 356.215, for July 1, 1991, and thereafter, are not 
 98.28  required to contain cash flow forecasts. 
 98.29     (d) Actuarial valuations of the public employees police and 
 98.30  fire fund local consolidation accounts for July 1, 1991, and 
 98.31  thereafter, are not required to contain separate tabulations or 
 98.32  summaries of active member, service retirement, disability 
 98.33  retirement, and survivor data for each local consolidation 
 98.34  account. 
 98.35     (e) The commission-retained actuary is: 
 98.36     (1) required to publish experience findings for those 
 99.1   retirement plans for which experience findings are required only 
 99.2   on a quadrennial basis for the four-year period ending June 30, 
 99.3   1992, and every four years thereafter; 
 99.4      (2) not required to prepare a separate experience analysis 
 99.5   or publish separate experience findings for basic and 
 99.6   coordinated programs if separate actuarial valuation results for 
 99.7   the programs are not required; and 
 99.8      (3) not required to calculate investment rate of return 
 99.9   experience results on any basis other than current asset value 
 99.10  as defined in section 356.215, subdivision 1, clause (6). 
 99.11     Sec. 10.  Minnesota Statutes 2000, section 356.219, is 
 99.12  amended to read: 
 99.13     356.219 [DISCLOSURE OF PUBLIC PENSION PLAN INVESTMENT 
 99.14  PORTFOLIO AND PERFORMANCE INFORMATION.] 
 99.15     Subdivision 1.  [REPORT REQUIRED.] (a) Except as indicated 
 99.16  in subdivision 4, the state board of investment, on behalf of 
 99.17  the public pension funds and programs for which it is the 
 99.18  investment authority, and any Minnesota public pension plan that 
 99.19  is not fully invested through the state board of investment, 
 99.20  including a local police or firefighters' relief association 
 99.21  governed by sections 69.77 or 69.771 to 69.775, shall report the 
 99.22  information specified in subdivision 3 to the state auditor.  
 99.23  The state auditor may prescribe a form or forms for the purposes 
 99.24  of the reporting requirements contained in this section. 
 99.25     (b) A local police or firefighters' relief association 
 99.26  governed by section 69.77 or sections 69.771 to 69.775 is fully 
 99.27  invested during a given calendar year for purposes of this 
 99.28  section if all assets of the applicable pension plan beyond 
 99.29  sufficient cash equivalent investments to cover six months 
 99.30  expected expenses are invested under section 11A.17.  The board 
 99.31  of any fully invested public pension plan remains responsible 
 99.32  for submitting investment policy statements and subsequent 
 99.33  revisions as required by subdivision 3, paragraph (a). 
 99.34     (c) For purposes of this section, the state board of 
 99.35  investment is considered to be the investment authority for any 
 99.36  Minnesota public pension fund required to be invested by the 
100.1   state board of investment under section 11A.23, or for any 
100.2   Minnesota public pension fund authorized to invest in the 
100.3   supplemental investment fund under section 11A.17 and which is 
100.4   fully invested by the state board of investment. 
100.5      Subd. 2.  [ASSET CLASS DEFINITION.] (a) For purposes of 
100.6   this section, "asset class" means any of the following asset 
100.7   groupings as authorized in applicable law, bylaws, or articles 
100.8   of incorporation: 
100.9      (1) cash and any cash equivalent investments with 
100.10  maturities of one year or less when issued; 
100.11     (2) debt securities with maturities greater than one year 
100.12  when issued, including but not limited to mortgage participation 
100.13  certificates and pools, asset backed securities, guaranteed 
100.14  investment contracts, and authorized government and corporate 
100.15  obligations of corporations organized under laws of the United 
100.16  States or any state, or the Dominion of Canada or its provinces; 
100.17     (3) stocks or convertible issues of any corporation 
100.18  organized under laws of the United States or any state, or the 
100.19  Dominion of Canada or its provinces, or any corporation listed 
100.20  on the New York Stock Exchange or the American Stock Exchange; 
100.21     (4) international stocks or convertible issues; 
100.22     (5) international debt securities; and 
100.23     (6) real estate and venture capital. 
100.24     (b) If the pension plan is investing under section 69.77, 
100.25  subdivision 2g, section 69.775, or any other applicable law, in 
100.26  open-end investment companies registered under the federal 
100.27  Investment Company Act of 1940, or in the Minnesota supplemental 
100.28  investment fund under section 11A.17, this investment must be 
100.29  included under an asset class indicated in paragraph (a), 
100.30  clauses (1) through (6), as appropriate.  If the investment 
100.31  vehicle includes underlying securities from more than one asset 
100.32  class as indicated by paragraph (a), clauses (1) through (6), 
100.33  the investment may be treated as a separate asset class. 
100.34     Subd. 3.  [CONTENT OF REPORTS.] (a) The report required by 
100.35  subdivision 1 must include a written statement of the investment 
100.36  policy in effect on June 30, 1997, if that statement has not 
101.1   been previously submitted.  Following that date, subsequent 
101.2   reports must include investment policy changes and the effective 
101.3   date of each policy change rather than a complete statement of 
101.4   investment policy, unless the state auditor requests submission 
101.5   of a complete current statement.  The report must also include 
101.6   the information required by the following paragraphs, as 
101.7   applicable. 
101.8      (b) If a public pension plan has a total market value of 
101.9   $10,000,000 or more as of the beginning of the calendar year, 
101.10  the report required by subdivision 1 must include the market 
101.11  value of the total portfolio and the market value of each 
101.12  investment account, investment portfolio, or asset class 
101.13  included in the pension fund as of the beginning of the calendar 
101.14  year and for each month, and the amount and date of each 
101.15  injection and withdrawal to the total portfolio and to each 
101.16  investment account, investment portfolio, or asset class.  If a 
101.17  public pension plan once files a report under this paragraph, it 
101.18  must continue reporting under this paragraph for any subsequent 
101.19  year in which the public pension plan is not fully invested as 
101.20  specified in subdivision 1, paragraph (b), even if asset values 
101.21  drop below $10,000,000 in market value in a that subsequent year.
101.22     (c) For public pension plans to which paragraph (b) 
101.23  applies, the report required by subdivision 1 must also include 
101.24  a calculation of the total time-weighted rate of return 
101.25  available from index-matching investments assuming the asset 
101.26  class performance targets and target asset mix indicated in the 
101.27  written statement of investment policy.  The provided 
101.28  information must include a description of indices used in the 
101.29  analyses and an explanation of why those indices are 
101.30  appropriate.  This paragraph does not apply to any fully 
101.31  invested plan, as defined by subdivision 1, paragraph (b).  
101.32  Reporting by the state board of investment under this paragraph 
101.33  is limited to information on the Minnesota public pension plans 
101.34  required to be invested by the state board of investment under 
101.35  section 11A.23. 
101.36     (d) If a public pension plan has a total market value of 
102.1   less than $10,000,000 as of the beginning of the calendar year 
102.2   and was never required to file under paragraph (b), the report 
102.3   required by subdivision 1 must include the amount and date of 
102.4   each total portfolio injection and withdrawal.  In addition, the 
102.5   report must include the market value of the total portfolio as 
102.6   of the beginning of the calendar year and for each quarter. 
102.7      (e) Any public pension plan reporting under paragraph (b) 
102.8   or (d) may include computed time-weighted rates of return with 
102.9   the report, in addition to all other required information, as 
102.10  applicable.  If these returns are supplied, the individual who 
102.11  computed the returns must certify that the returns are net of 
102.12  all costs and fees, including investment management fees, and 
102.13  that the procedures used to compute the returns are consistent 
102.14  with bank administration institute studies of investment 
102.15  performance measurement and association of investment management 
102.16  and research presentation standards. 
102.17     (f) For public pension plans reporting under paragraph (d), 
102.18  the public pension plan must retain supporting information 
102.19  specifying the date and amount of each injection and withdrawal 
102.20  to each investment account and investment portfolio.  The public 
102.21  pension plan must also retain the market value of each 
102.22  investment account and investment portfolio at the beginning of 
102.23  the calendar year and for each quarter.  Information that is 
102.24  required to be collected and retained for any given year or 
102.25  years under this paragraph must be submitted to the office of 
102.26  the state auditor if the office of the state auditor requests in 
102.27  writing that the information be submitted by a public pension 
102.28  plan or plans, or be submitted by the state board of investment 
102.29  for any plan or plans for which the state board of investment is 
102.30  the investment authority under this section.  If the state 
102.31  auditor requests information under this subdivision, and the 
102.32  public plan fails to comply, the pension plan will be is subject 
102.33  to penalties under subdivision 5, unless penalties are waived by 
102.34  the state auditor under that subdivision. 
102.35     Subd. 4.  [ALTERNATIVE REPORTING; CERTAIN PLANS.] In lieu 
102.36  of requirements in subdivision 3, the applicable administration 
103.1   for the individual retirement account plans under chapters 354B 
103.2   and 354D and for the University of Minnesota faculty retirement 
103.3   plan shall submit computed time-weighted rates of return to the 
103.4   office of the state auditor.  These time-weighted rates of 
103.5   return must cover the most recent complete calendar year, and 
103.6   must be computed separately for each investment option available 
103.7   to plan members.  To the extent feasible, the returns must be 
103.8   computed net of all investment costs, fees, and charges, so that 
103.9   the computed return reflects the net time-weighted return 
103.10  available to the investor.  If this is not practical, the 
103.11  existence of any remaining investment cost, fee, or charge which 
103.12  could further lower the net return must be disclosed.  The 
103.13  procedures used to compute the returns must be consistent with 
103.14  bank administration institute studies of investment performance 
103.15  measurement and association of investment management and 
103.16  research presentation standards, or, if applicable, securities 
103.17  exchange commission requirements.  The individual who computes 
103.18  the returns must certify that the supplied returns comply with 
103.19  this subdivision.  The applicable plan administrator must also 
103.20  submit, with the return information, the total amounts invested 
103.21  by the plan members, in aggregate, in each investment option as 
103.22  of the last day of the calendar year. 
103.23     Subd. 5.  [PENALTY FOR NONCOMPLIANCE.] Failure to comply 
103.24  with the reporting requirements of this section shall must 
103.25  result in a withholding of all state aid or state appropriation 
103.26  to which the pension plan may otherwise be directly or 
103.27  indirectly entitled until the pension plan has complied with the 
103.28  reporting requirements.  The state auditor shall instruct the 
103.29  commissioners of revenue and finance to withhold any state aid 
103.30  or state appropriation from any pension plan that fails to 
103.31  comply with the reporting requirements contained in this 
103.32  section, until the pension plan has complied with the reporting 
103.33  requirements.  The state auditor may waive the withholding of 
103.34  state aid or state appropriations if the state auditor 
103.35  determines in writing that compliance would create an excessive 
103.36  hardship for the pension plan. 
104.1      Subd. 6.  [INVESTMENT DISCLOSURE REPORT.] (a) The state 
104.2   auditor shall prepare an annual report to the legislature on the 
104.3   investment performance of the various public pension plans 
104.4   subject to this section.  The content of the report is specified 
104.5   in paragraphs (b) to (e). 
104.6      (b) For each public pension plan reporting under 
104.7   subdivision 3, paragraph (b), the state auditor shall compute 
104.8   and report total portfolio and asset class time-weighted rates 
104.9   of return, net of all investment-related costs and fees. 
104.10     (c) For each public pension plan reporting under 
104.11  subdivision 3, paragraph (d), the state auditor shall compute 
104.12  and report total portfolio time-weighted rates of return, net of 
104.13  all costs and fees.  If the state auditor has requested data for 
104.14  a plan under subdivision 3, paragraph (f), the state auditor may 
104.15  also compute and report asset class time-weighted rates of 
104.16  return, net of all costs and fees. 
104.17     (d) The report by the state auditor must include the 
104.18  information submitted by the pension plans under subdivision 3, 
104.19  paragraph (c), or a synopsis of that information. 
104.20     (e) The report by the state auditor may also include a 
104.21  presentation of multiyear performance, information collected 
104.22  under subdivision 4, and any other information or analysis 
104.23  deemed appropriate by the state auditor.  
104.24     Subd. 7.  [EXPENSE OF REPORT.] All administrative expenses 
104.25  incurred relating to the investment report by the state auditor 
104.26  described in subdivision 6 must be borne by the office of the 
104.27  state auditor and may not be charged back to the entities 
104.28  described in subdivisions 1 or 4. 
104.29     Subd. 8.  [TIMING OF REPORTS.] (a) For salaried firefighter 
104.30  relief associations, police relief associations, and volunteer 
104.31  firefighter relief associations, the information required under 
104.32  this section must be submitted by the due date for reports 
104.33  required under section 69.051, subdivision 1 or 1a, as 
104.34  applicable.  If a relief association satisfies the definition of 
104.35  a fully invested plan under subdivision 1, paragraph (b), for 
104.36  the calendar year covered by the report required under section 
105.1   69.051, subdivision 1 or 1a, as applicable, the chief 
105.2   administrative officer of the covered pension plan shall certify 
105.3   that compliance on a form prescribed by the state auditor.  The 
105.4   state auditor shall transmit annually to the state board of 
105.5   investment a list or lists of covered pension plans which 
105.6   submitted certifications, in order to facilitate reporting by 
105.7   the state board of investment under paragraph (c) of this 
105.8   subdivision. 
105.9      (b) For the Minneapolis teachers retirement fund 
105.10  association, the St. Paul teachers retirement fund association, 
105.11  the Duluth teachers retirement fund association, the Minneapolis 
105.12  employees retirement fund, the University of Minnesota faculty 
105.13  supplemental retirement plan, and the applicable administrators 
105.14  for the University of Minnesota faculty retirement plan and the 
105.15  individual retirement account plans under chapters 354B and 
105.16  354D, the information required under this section must be 
105.17  submitted to the state auditor by June 1 of each year. 
105.18     (c) The state board of investment, on behalf of pension 
105.19  funds specified in subdivision 1, paragraph (c), must report 
105.20  information required under this section by September 1 of each 
105.21  year. 
105.22     Sec. 11.  Minnesota Statutes 2000, section 356.22, is 
105.23  amended to read: 
105.24     356.22 [INTERPRETATION.] 
105.25     Subdivision 1.  [PROVISION OF ADDITIONAL VALUATIONS.] No 
105.26  provision in sections 356.20 to 356.23 shall may be construed to 
105.27  in any way to limit any of the enumerated pension and retirement 
105.28  funds from furnishing additional actuarial valuations or 
105.29  experience studies, or additional data and actuarial 
105.30  calculations, as may be requested by the legislature or any 
105.31  standing committee or by the legislative commission on pensions 
105.32  and retirement. 
105.33     Subd. 2.  [ACCELERATED AMORTIZATION.] No provision in 
105.34  sections 356.20 to 356.23 shall may be construed to preclude any 
105.35  public pension and retirement fund enumerated in section 356.20, 
105.36  subdivision 2, from requesting, or the legislature from 
106.1   providing for, the amortization of any unfunded actuarial 
106.2   accrued liability in a shorter period of time than by the 
106.3   established date for full funding as determined pursuant to 
106.4   under section 356.215, subdivision 4g 11.  
106.5      Subd. 3.  [ADDITIONAL REQUIRED VALUATIONS.] The legislature 
106.6   or any committee or commission thereof now in existence or 
106.7   hereafter created which has assigned to it the subject of public 
106.8   pensions or public retirement plans may require actuarial 
106.9   valuations and experience studies in conformity with the 
106.10  provisions of sections 356.20 to 356.23 from any public pension 
106.11  and retirement plan or fund, whether enumerated in sections 
106.12  356.20 to 356.23 or otherwise.  
106.13     Sec. 12.  Minnesota Statutes 2000, section 356.23, is 
106.14  amended to read: 
106.15     356.23 [SUPPLEMENTAL VALUATIONS; ALTERNATIVE REPORTS AND 
106.16  VALUATIONS.] 
106.17     Subdivision 1.  [SUPPLEMENTAL ACTUARIAL VALUATIONS.] Any 
106.18  supplemental actuarial valuations prepared on behalf of any 
106.19  governing or managing board of any pension and retirement fund 
106.20  enumerated in section 356.20, subdivision 2, by an approved 
106.21  actuary, shall must be prepared in accordance with the 
106.22  applicable provisions of sections 356.20 to 356.23 and with the 
106.23  standards adopted by the legislative commission on pensions and 
106.24  retirement.  Any pension and retirement fund which prepares an 
106.25  alternative actuarial valuation under subdivision 2 shall also 
106.26  must have a supplemental actuarial valuation prepared.  
106.27     Subd. 2.  [ALTERNATIVE REPORTS AND VALUATIONS.] In addition 
106.28  to the financial reports and actuarial valuations required by 
106.29  sections 356.20 to 356.23, the governing or managing board of 
106.30  any fund concerned may submit alternative reports and actuarial 
106.31  valuations for distribution to the legislature, any of its 
106.32  committees, or the legislative commission on pensions and 
106.33  retirement on a different basis or on different assumptions than 
106.34  are specified in sections 356.20 to 356.23.  The assumptions and 
106.35  basis of any alternative reports and valuations shall must be 
106.36  clearly stated in the document.  
107.1                   LIMITATIONS ON SUPPLEMENTAL AND  
107.2                        LOCAL RETIREMENT PLANS  
107.3      Sec. 13.  Minnesota Statutes 2001 Supplement, section 
107.4   356.24, subdivision 1, is amended to read: 
107.5      Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
107.6   for a school district or other governmental subdivision or state 
107.7   agency to levy taxes for, or to contribute public funds to a 
107.8   supplemental pension or deferred compensation plan that is 
107.9   established, maintained, and operated in addition to a primary 
107.10  pension program for the benefit of the governmental subdivision 
107.11  employees other than: 
107.12     (1) to a supplemental pension plan that was established, 
107.13  maintained, and operated before May 6, 1971; 
107.14     (2) to a plan that provides solely for group health, 
107.15  hospital, disability, or death benefits; 
107.16     (3) to the individual retirement account plan established 
107.17  by chapter 354B; 
107.18     (4) to a plan that provides solely for severance pay under 
107.19  section 465.72 to a retiring or terminating employee; 
107.20     (5) for employees other than personnel employed by the 
107.21  board of trustees of the Minnesota state colleges and 
107.22  universities and covered under the higher education supplemental 
107.23  retirement plan under chapter 354C, if the supplemental plan 
107.24  coverage is provided for in a personnel policy of the public 
107.25  employer or in the collective bargaining agreement between the 
107.26  public employer and the exclusive representative of public 
107.27  employees in an appropriate unit, in an amount matching employee 
107.28  contributions on a dollar for dollar basis, but not to exceed an 
107.29  employer contribution of $2,000 a year per employee; 
107.30     (i) to the state of Minnesota deferred compensation plan 
107.31  under section 352.96; or 
107.32     (ii) in payment of the applicable portion of the 
107.33  contribution made to any investment eligible under section 
107.34  403(b) of the Internal Revenue Code, if the employing unit has 
107.35  complied with any applicable pension plan provisions of the 
107.36  Internal Revenue Code with respect to the tax-sheltered annuity 
108.1   program during the preceding calendar year; 
108.2      (6) for personnel employed by the board of trustees of the 
108.3   Minnesota state colleges and universities and not covered by 
108.4   clause (5), to the supplemental retirement plan under chapter 
108.5   354C, if the supplemental plan coverage is provided for in a 
108.6   personnel policy or in the collective bargaining agreement of 
108.7   the public employer with the exclusive representative of the 
108.8   covered employees in an appropriate unit, in an amount matching 
108.9   employee contributions on a dollar for dollar basis, but not to 
108.10  exceed an employer contribution of $2,700 a year for each 
108.11  employee; 
108.12     (7) to a supplemental plan or to a governmental trust to 
108.13  save for postretirement health care expenses qualified for 
108.14  tax-preferred treatment under the Internal Revenue Code, if the 
108.15  supplemental plan coverage is provided for in a personnel policy 
108.16  or in the collective bargaining agreement of a public employer 
108.17  with the exclusive representative of the covered employees in an 
108.18  appropriate unit; or 
108.19     (8) to the laborer's national industrial pension fund for 
108.20  the employees of a governmental subdivision who are covered by a 
108.21  collective bargaining agreement that provides for coverage by 
108.22  that fund and that sets forth a fund contribution rate, but not 
108.23  to exceed an employer contribution of $2,000 per year per 
108.24  employee; 
108.25     (9) to the plumbers' and pipefitters' national pension fund 
108.26  for the employees of a governmental subdivision who are covered 
108.27  by a collective bargaining agreement that provides for coverage 
108.28  by that fund and that sets forth a fund contribution rate, but 
108.29  not to exceed an employer contribution of $2,000 per year per 
108.30  employee; 
108.31     (10) to the international union of operating engineers 
108.32  pension fund for the employees of a governmental subdivision who 
108.33  are covered by a collective bargaining agreement that provides 
108.34  for coverage by that fund and that sets forth a fund 
108.35  contribution rate, but not to exceed an employer contribution of 
108.36  $2,000 per year per employee; or 
109.1      (11) to a supplemental plan organized and operated under 
109.2   the federal Internal Revenue Code, as amended, that is wholly 
109.3   and solely funded by the employee's accumulated sick leave, 
109.4   accumulated vacation leave, and accumulated severance pay. 
109.5      Sec. 14.  Minnesota Statutes 2000, section 356.24, 
109.6   subdivision 1b, is amended to read: 
109.7      Subd. 1b.  [VENDOR RESTRICTIONS.] A personnel policy for 
109.8   unrepresented employees, or a collective bargaining agreement 
109.9   for represented employees, or a school board for school district 
109.10  employees may establish limits on the number of vendors of plans 
109.11  covered by the exceptions set forth in subdivision 1 that it 
109.12  will utilize and conditions under which the those vendors may 
109.13  contact employees both during working hours and after working 
109.14  hours. 
109.15     Sec. 15.  Minnesota Statutes 2000, section 356.24, 
109.16  subdivision 1c, is amended to read: 
109.17     Subd. 1c.  [STATE BOARD OF INVESTMENT REVIEW.] (a) Any 
109.18  insurance company, mutual fund company, or similar company 
109.19  providing investments eligible under section 403(b) of the 
109.20  Internal Revenue Code and eligible to receive employer 
109.21  contributions under this section may request the state board of 
109.22  investment, in conjunction with the department of commerce, to 
109.23  review the financial standing of the company, the 
109.24  competitiveness of its investment options and returns, and the 
109.25  level of all charges and fees impacting those returns.  
109.26     (b) The state board of investment may establish a fee for 
109.27  each review.  The state board of investment must maintain and 
109.28  have available a list of all reviewed companies.  
109.29     (c) In reviewing companies under this section, the state 
109.30  board of investment must not be considered to be acting as a 
109.31  fiduciary or to be engaged in a fiduciary activity under chapter 
109.32  356A or common law. 
109.33     Sec. 16.  Minnesota Statutes 2000, section 356.24, 
109.34  subdivision 2, is amended to read: 
109.35     Subd. 2.  [LIMIT ON CERTAIN CONTRIBUTIONS OR BENEFIT 
109.36  CHANGES.] No change in benefits or employer contributions in a 
110.1   supplemental pension plan to which this section applies that 
110.2   occurs after May 6, 1971, is effective without prior legislative 
110.3   authorization. 
110.4      Sec. 17.  Minnesota Statutes 2000, section 356.245, is 
110.5   amended to read: 
110.6      356.245 [LOCAL ELECTED OFFICIALS.] 
110.7      An elected official who is covered by section 353.01, 
110.8   subdivision 2a, is eligible to participate in the state of 
110.9   Minnesota deferred compensation plan under section 356.24.  A 
110.10  The applicable local governmental unit may make the matching 
110.11  employer contributions authorized by that section on the part of 
110.12  a participating elected official. 
110.13     Sec. 18.  Minnesota Statutes 2000, section 356.25, is 
110.14  amended to read: 
110.15     356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; 
110.16  EXCLUSIONS.] 
110.17     Notwithstanding any other provision of law or charter to 
110.18  the contrary, no city, county, public agency or instrumentality, 
110.19  or other political subdivision shall may, after August 1, 1975, 
110.20  establish for any of its employees any a local pension plan or 
110.21  fund financed in whole or in part from public funds, other than 
110.22  a volunteer firefighter's relief association that is established 
110.23  pursuant to under chapter 424A and is governed by sections 
110.24  69.771 to 69.776. 
110.25           PUBLIC RETIREMENT PLAN PORTABILITY MECHANISMS  
110.26     Sec. 19.  Minnesota Statutes 2000, section 356.30, is 
110.27  amended to read: 
110.28     356.30 [COMBINED SERVICE ANNUITY.] 
110.29     Subdivision 1.  [ELIGIBILITY; COMPUTATION OF ANNUITY.] (a) 
110.30  Notwithstanding any provisions of the laws governing the 
110.31  retirement plans enumerated in subdivision 3, a person who has 
110.32  met the qualifications of paragraph (b) may elect to receive a 
110.33  retirement annuity from each enumerated retirement plan in which 
110.34  the person has at least one-half year of allowable service, 
110.35  based on the allowable service in each plan, subject to the 
110.36  provisions of paragraph (c). 
111.1      (b) A person may receive, upon retirement, a retirement 
111.2   annuity from each enumerated retirement plan in which the person 
111.3   has at least one-half year of allowable service, and 
111.4   augmentation of a deferred annuity calculated under the laws 
111.5   governing each public pension plan or fund named in subdivision 
111.6   3, from the date the person terminated all public service if: 
111.7      (1) the person has allowable service totaling an amount 
111.8   that allows the person to receive an annuity in any two or more 
111.9   of the enumerated plans; and 
111.10     (2) the person has not begun to receive an annuity from any 
111.11  enumerated plan or the person has made application for benefits 
111.12  from each applicable plan and the effective dates of the 
111.13  retirement annuity with each plan under which the person chooses 
111.14  to receive an annuity are within a one-year period.  
111.15     (c) The retirement annuity from each plan must be based 
111.16  upon the allowable service, accrual rates, and average salary in 
111.17  the applicable plan except as further specified or modified in 
111.18  the following clauses:  
111.19     (1) the laws governing annuities must be the law in effect 
111.20  on the date of termination from the last period of public 
111.21  service under a covered retirement plan with which the person 
111.22  earned a minimum of one-half year of allowable service credit 
111.23  during that employment; 
111.24     (2) the "average salary" on which the annuity from each 
111.25  covered plan in which the employee has credit in a formula plan 
111.26  shall must be based on the employee's highest five successive 
111.27  years of covered salary during the entire service in covered 
111.28  plans; 
111.29     (3) accrual rates to be used by each plan must be those 
111.30  percentages prescribed by each plan's formula as continued for 
111.31  the respective years of allowable service from one plan to the 
111.32  next, recognizing all previous allowable service with the other 
111.33  covered plans; 
111.34     (4) allowable service in all the plans must be combined in 
111.35  determining eligibility for and the application of each plan's 
111.36  provisions in respect to reduction in the annuity amount for 
112.1   retirement prior to normal retirement age; and 
112.2      (5) the annuity amount payable for any allowable service 
112.3   under a nonformula plan of a covered plan must not be affected, 
112.4   but such service and covered salary must be used in the above 
112.5   calculation.  
112.6      (d) This section does not apply to any person whose final 
112.7   termination from the last public service under a covered plan is 
112.8   prior to was before May 1, 1975.  
112.9      (e) For the purpose of computing annuities under this 
112.10  section, the accrual rates used by any covered plan, except the 
112.11  public employees police and fire plan, the judges' retirement 
112.12  fund, and the state patrol retirement plan, must not exceed the 
112.13  percent specified in section 356.19 356.315, subdivision 4, per 
112.14  year of service for any year of service or fraction thereof.  
112.15  The formula percentage used by the judges' retirement fund must 
112.16  not exceed the percent percentage rate specified in section 
112.17  356.19 356.315, subdivision 8, per year of service for any year 
112.18  of service or fraction thereof.  The accrual rate used by the 
112.19  public employees police and fire plan and the state patrol 
112.20  retirement plan must not exceed the percent percentage rate 
112.21  specified in section 356.19 356.315, subdivision 6, per year of 
112.22  service for any year of service or fraction thereof.  The 
112.23  accrual rate or rates used by the legislators retirement plan 
112.24  and the elective state officers retirement plan must not exceed 
112.25  2.5 percent, but this limit does not apply to the adjustment 
112.26  provided under section 3A.02, subdivision 1, paragraph (c), or 
112.27  352C.031, paragraph (b). 
112.28     (f) Any period of time for which a person has credit in 
112.29  more than one of the covered plans must be used only once for 
112.30  the purpose of determining total allowable service.  
112.31     (g) If the period of duplicated service credit is more than 
112.32  one-half year, or the person has credit for more than one-half 
112.33  year, with each of the plans, each plan must apply its formula 
112.34  to a prorated service credit for the period of duplicated 
112.35  service based on a fraction of the salary on which deductions 
112.36  were paid to that fund for the period divided by the total 
113.1   salary on which deductions were paid to all plans for the period.
113.2      (h) If the period of duplicated service credit is less than 
113.3   one-half year, or when added to other service credit with that 
113.4   plan is less than one-half year, the service credit must be 
113.5   ignored and a refund of contributions made to the person in 
113.6   accord with that plan's refund provisions. 
113.7      Subd. 2.  [REPAYMENT OF REFUNDS.] A person who has service 
113.8   credit in one of the funds retirement plans enumerated in 
113.9   subdivision 3 and who is employed or was formerly employed in a 
113.10  position covered by one of these funds covered plans but also 
113.11  has received a refund from any other of these funds covered 
113.12  plans, may repay the refund to the respective fund plan under 
113.13  terms and conditions that are consistent with the laws governing 
113.14  the other fund plan, except that the person need not be a 
113.15  currently contributing member of the fund plan to which the 
113.16  refund is repaid at the time the repayment is made.  Unless 
113.17  otherwise provided by statute, the repayment of a refund under 
113.18  this subdivision may only be made within six months following 
113.19  termination of employment from a position covered by one of the 
113.20  funds covered plans enumerated in subdivision 3 or before the 
113.21  date of retirement from the fund to which the refund is repaid, 
113.22  whichever is earlier. 
113.23     Subd. 2a.  [PURCHASES OF PRIOR SERVICE.] If a purchase of 
113.24  prior service is made under the provisions of Laws 1988, chapter 
113.25  709, article 3, or any similar special or general law provision 
113.26  which allows a purchase of service credit in any of the funds 
113.27  retirement plans enumerated in subdivision 3, the amount of 
113.28  required reserves calculated as prescribed in Laws 1988, chapter 
113.29  709, article 3, must be paid to each fund plan based on the 
113.30  amount of benefit increase payable from that fund plan as a 
113.31  result of the purchase of prior service. 
113.32     Subd. 3.  [COVERED FUNDS PLANS.] This section applies to 
113.33  the following retirement funds plans: 
113.34     (1) the general state employees retirement fund plan of the 
113.35  Minnesota state retirement system, established pursuant to under 
113.36  chapter 352; 
114.1      (2) the correctional state employees retirement program 
114.2   plan of the Minnesota state retirement system, 
114.3   established pursuant to under chapter 352; 
114.4      (3) the unclassified employees retirement plan program, 
114.5   established pursuant to under chapter 352D; 
114.6      (4) the state patrol retirement fund plan, established 
114.7   pursuant to under chapter 352B; 
114.8      (5) the legislators retirement plan, established pursuant 
114.9   to under chapter 3A; 
114.10     (6) the elective state officers' retirement plan, 
114.11  established pursuant to under chapter 352C; 
114.12     (7) the general employees retirement plan of the public 
114.13  employees retirement association, established pursuant to under 
114.14  chapter 353; 
114.15     (8) the public employees police and fire fund retirement 
114.16  plan of the public employees retirement association, established 
114.17  pursuant to under chapter 353; 
114.18     (9) public employees the local government correctional 
114.19  service retirement plan of the public employees retirement 
114.20  association, established pursuant to under chapter 353E; 
114.21     (10) the teachers retirement association, established 
114.22  pursuant to under chapter 354; 
114.23     (11) the Minneapolis employees retirement fund, established 
114.24  pursuant to under chapter 422A; 
114.25     (12) the Minneapolis teachers retirement fund association, 
114.26  established pursuant to under chapter 354A; 
114.27     (13) the St. Paul teachers retirement fund association, 
114.28  established pursuant to under chapter 354A; 
114.29     (14) the Duluth teachers retirement fund association, 
114.30  established pursuant to under chapter 354A; and 
114.31     (15) the judges' retirement fund, established by sections 
114.32  490.121 to 490.132. 
114.33     Sec. 20.  Minnesota Statutes 2000, section 356.302, is 
114.34  amended to read: 
114.35     356.302 [DISABILITY BENEFIT WITH COMBINED SERVICE.] 
114.36     Subdivision 1.  [DEFINITIONS.] (a) The terms used in this 
115.1   section are defined in this subdivision. 
115.2      (b) "Average salary" means the highest average of covered 
115.3   salary for the appropriate period of credited service that is 
115.4   required for the calculation of a disability benefit by the 
115.5   covered retirement plan and that is drawn from any period of 
115.6   credited service and successive years of covered salary in a 
115.7   covered retirement plan. 
115.8      (c) "Covered retirement plan" or "plan" means a retirement 
115.9   plan listed in subdivision 7. 
115.10     (d) "Duty-related" means a disabling illness or injury that 
115.11  occurred while the person was actively engaged in employment 
115.12  duties or that arose out of the person's active employment 
115.13  duties. 
115.14     (e) "General employee retirement plan" means a covered 
115.15  retirement plan listed in subdivision 7, clauses (1) to (8) and 
115.16  (13). 
115.17     (f) "Occupationally disabled" means the condition of having 
115.18  a medically determinable physical or mental impairment that 
115.19  makes a person unable to satisfactorily perform the minimum 
115.20  requirements of the person's employment position or a 
115.21  substantially similar employment position. 
115.22     (g) "Public safety employee retirement plan" means a 
115.23  covered retirement plan listed in subdivision 7, clauses (9) to 
115.24  (11) (12). 
115.25     (h) "Totally and permanently disabled" means the condition 
115.26  of having a medically determinable physical or mental impairment 
115.27  that makes a person unable to engage in any substantial gainful 
115.28  activity and that is expected to continue or has continued for a 
115.29  period of at least one year or that is expected to result 
115.30  directly in the person's death. 
115.31     Subd. 2.  [ENTITLEMENT.] Notwithstanding any provision of 
115.32  law to the contrary governing any covered retirement plan, a 
115.33  member of a covered retirement plan may receive a combined 
115.34  service disability benefit from each covered retirement plan in 
115.35  which the person has credit for at least one-half year of 
115.36  allowable service if that person meets the applicable qualifying 
116.1   conditions.  Subdivision 3 applies to a member of a general 
116.2   employee retirement plan.  Subdivision 4 applies to a member of 
116.3   a public safety employee retirement plan.  Subdivision 5 applies 
116.4   to a member of a covered retirement plan with both general 
116.5   employee and public safety employee retirement plan service. 
116.6      Subd. 3.  [GENERAL EMPLOYEE PLAN ELIGIBILITY REQUIREMENTS.] 
116.7   A disabled member of a covered retirement plan who has credit 
116.8   for allowable service in a combination of general employee 
116.9   retirement plans is entitled to a combined service disability 
116.10  benefit if the member: 
116.11     (1) is less than 65 years of age on the date of the 
116.12  application for the disability benefit; 
116.13     (2) has become totally and permanently disabled; 
116.14     (3) has credit for allowable service in any combination of 
116.15  general employee retirement plans totaling at least three years; 
116.16     (4) has credit for at least one-half year of allowable 
116.17  service with the current general employee retirement plan before 
116.18  the commencement of the disability; 
116.19     (5) has at least three continuous years of allowable 
116.20  service credit by the general employee retirement plan or has at 
116.21  least a total of three years of allowable service credit by a 
116.22  combination of general employee retirement plans in a 72-month 
116.23  period during which no interruption of allowable service credit 
116.24  from a termination of employment exceeded 29 days; and 
116.25     (6) is was not receiving a retirement annuity or disability 
116.26  benefit from any covered general employee retirement plan at the 
116.27  time of the commencement of the disability.  
116.28     Subd. 4.  [PUBLIC SAFETY PLAN ELIGIBILITY REQUIREMENTS.] A 
116.29  disabled member of a covered retirement plan who has credit for 
116.30  allowable service in a combination of public safety employee 
116.31  retirement plans is entitled to a combined service disability 
116.32  benefit if the member: 
116.33     (1) has become occupationally disabled; 
116.34     (2) has credit for allowable service in any combination of 
116.35  public safety employee retirement plans totaling at least one 
116.36  year if the disability is duty-related or totaling at least 
117.1   three years if the disability is not duty-related; 
117.2      (3) has credit for at least one-half year of allowable 
117.3   service with the current public safety employee retirement plan 
117.4   before the commencement of the disability; and 
117.5      (4) is was not receiving a retirement annuity or disability 
117.6   benefit from any covered public safety employee retirement plan 
117.7   at the time of the commencement of the disability. 
117.8      Subd. 5.  [GENERAL AND PUBLIC SAFETY PLAN ELIGIBILITY 
117.9   REQUIREMENTS.] A disabled member of a covered retirement plan 
117.10  who has credit for allowable service in a combination of both a 
117.11  public safety employee retirement plans plan and general 
117.12  employee retirement plans plan must meet the qualifying 
117.13  requirements in subdivisions 3 and 4 to receive a combined 
117.14  service disability benefit from the applicable general employee 
117.15  and public safety employee retirement plans, except that the 
117.16  person need only be a member of a covered retirement plan at the 
117.17  time of the commencement of the disability and that the minimum 
117.18  allowable service requirements of subdivisions 3, clauses (3) 
117.19  and (5), and 4, clauses (3) and (4), may be met in any 
117.20  combination of covered retirement plans. 
117.21     Subd. 6.  [COMBINED SERVICE DISABILITY BENEFIT 
117.22  COMPUTATION.] (a) The combined service disability benefit from 
117.23  each covered retirement plan must be based on the allowable 
117.24  service in each retirement plan, except as specified in 
117.25  paragraphs (b) to (f). 
117.26     (b) The disability benefit must be governed by the law in 
117.27  effect for each covered retirement plan on the date of the 
117.28  commencement of the member's most recent qualifying disability 
117.29  as a member of a covered retirement plan. 
117.30     (c) All plans must base the disability benefit on the same 
117.31  average salary figure to the extent practicable. 
117.32     (d) If the method of the covered retirement plan used to 
117.33  compute a disability benefit varies based on the length of 
117.34  allowable service credit, the benefit accrual formula 
117.35  percentages used by the plan must recognize the allowable 
117.36  service credit in the plan as a continuation of any previous 
118.1   allowable service credit with other covered retirement plans. 
118.2      (e) If the covered retirement plan is a defined benefit or 
118.3   formula plan and the method used to compute a disability benefit 
118.4   does not vary based on the length of allowable service credit, 
118.5   the portion of the specified benefit amount from the plan must 
118.6   bear the same proportion to the total specified benefit amount 
118.7   as the allowable service credit in that plan bears to the total 
118.8   allowable service credit in all covered retirement plans.  If 
118.9   the covered retirement plan is a defined contribution or 
118.10  nonformula plan, the disability benefit amount for allowable 
118.11  service under the plan is not affected, but the service and the 
118.12  covered salary under the plan must be used as applicable in 
118.13  calculations by other covered retirement plans. 
118.14     (f) A period for which a person has allowable service 
118.15  credit in more than one covered retirement plan must be used 
118.16  only once in determining the total allowable service credit for 
118.17  calculating the combined service disability benefit, with any 
118.18  period of duplicated service credit handled under as provided in 
118.19  section 356.30, subdivision 1, clause (3), items (i) and 
118.20  (j) paragraphs (g) and (h). 
118.21     (g) If a person is entitled to a minimum benefit payable 
118.22  from one of the public pension plans named enumerated in section 
118.23  356.30, subdivision 3, the person may receive additional credit 
118.24  for only those years of service in another covered pension plan 
118.25  that, when added to the years of service in the pension plan 
118.26  that is paying the minimum benefit, exceed the years of service 
118.27  on which the minimum benefit is based. 
118.28     (h) A partially employed recipient of a disability benefit 
118.29  must have any current reemployment income plus the total 
118.30  disability payment payments from all plans listed enumerated in 
118.31  subdivision 7 added together, and then compared to their final 
118.32  salary rate as a public employee.  If current income plus the 
118.33  total disability payments exceed the final salary of the person 
118.34  at the time of retirement, then disability benefit payments from 
118.35  all the plans will must be reduced on a prorated basis relative 
118.36  to the years of service in each fund so that earnings plus 
119.1   benefit payments do not exceed their the final salary rate. 
119.2      Subd. 7.  [COVERED RETIREMENT PLANS.] This section applies 
119.3   to the following retirement plans: 
119.4      (1) the general state employees retirement fund plan of the 
119.5   Minnesota state retirement system, established by chapter 352; 
119.6      (2) the unclassified state employees retirement plan 
119.7   program of the Minnesota state retirement system, established by 
119.8   chapter 352D; 
119.9      (3) the general employees retirement plan of the public 
119.10  employees retirement association, established by chapter 353; 
119.11     (4) the teachers retirement association, established by 
119.12  chapter 354; 
119.13     (5) the Duluth teachers retirement fund association, 
119.14  established by chapter 354A; 
119.15     (6) the Minneapolis teachers retirement fund association, 
119.16  established by chapter 354A; 
119.17     (7) the St. Paul teachers retirement fund association, 
119.18  established by chapter 354A; 
119.19     (8) the Minneapolis employees retirement fund, established 
119.20  by chapter 422A; 
119.21     (9) the state correctional employees retirement plan of the 
119.22  Minnesota state retirement system, established by chapter 352; 
119.23     (10) the state patrol retirement fund plan, established by 
119.24  chapter 352B; 
119.25     (11) the public employees police and fire fund plan of the 
119.26  public employees retirement association, established by chapter 
119.27  353; 
119.28     (12) public employees the local government correctional 
119.29  service retirement plan of the public employees retirement 
119.30  association, established by chapter 353E; and 
119.31     (13) the judges' retirement fund plan, established by 
119.32  sections 490.121 to 490.132. 
119.33     Sec. 21.  Minnesota Statutes 2000, section 356.303, is 
119.34  amended to read: 
119.35     356.303 [SURVIVOR BENEFIT WITH COMBINED SERVICE.] 
119.36     Subdivision 1.  [DEFINITIONS.] (a) The terms used in this 
120.1   section are defined in this subdivision. 
120.2      (b) "Average salary" means the highest average of covered 
120.3   salary for the appropriate period of credited service that is 
120.4   required for the calculation of a survivor annuity or a survivor 
120.5   benefit, whichever applies, by the covered retirement plan and 
120.6   that is drawn from any period of credited service and covered 
120.7   salary in a covered retirement plan. 
120.8      (c) "Covered retirement plan" or "plan" means a retirement 
120.9   plan listed enumerated in subdivision 4. 
120.10     (d) "Deceased member" means a person who on the date of 
120.11  death was an active member of a covered retirement plan and who 
120.12  has reached the minimum age, if any, that is required by the 
120.13  covered retirement plan as part of qualifying for a survivor 
120.14  annuity or survivor benefit. 
120.15     (e) "Surviving child" means a child of a deceased member 
120.16  (1) who is unmarried,; (2) who has not reached age 18, or, if a 
120.17  full-time student, who has not reached a higher age as specified 
120.18  in by the applicable covered retirement plan,; and (3) if 
120.19  specified by that plan, who was actually dependent on the 
120.20  deceased member for a specified proportion of support before the 
120.21  deceased member's death.  "Surviving child" includes a natural 
120.22  child, an adopted child, or a child of a deceased member who is 
120.23  conceived during the member's lifetime and who is born after the 
120.24  member's death. 
120.25     (f) "Surviving spouse" means the legally married husband or 
120.26  wife, whichever applies, of the deceased member who was residing 
120.27  with the deceased member on the date of death and who, if 
120.28  specified by the applicable covered retirement plan, had been 
120.29  married to the deceased member for a specified period of time 
120.30  before the death of the deceased member. 
120.31     (g) "Survivor annuity" means the entitlement to a future 
120.32  amount payable to a survivor as the remainder interest of an 
120.33  optional annuity form implied by law as having been chosen by a 
120.34  deceased member before the date of death and effective on the 
120.35  date of death or provided automatically. 
120.36     (h) "Survivor benefit" means an entitlement to a future 
121.1   amount payable to a survivor that is not included in the 
121.2   definition of a survivor annuity. 
121.3      Subd. 2.  [ENTITLEMENT; ELIGIBILITY.] Notwithstanding 
121.4   any provision of law to the contrary governing a covered 
121.5   retirement plan, a person who is the survivor of a deceased 
121.6   member of a covered retirement plan may receive a combined 
121.7   service survivor benefit from each covered retirement plan in 
121.8   which the deceased member had credit for at least one-half year 
121.9   of allowable service if the deceased member: 
121.10     (1) had credit for sufficient allowable service in any 
121.11  combination of covered retirement plans to meet any minimum 
121.12  allowable service credit requirement of the covered retirement 
121.13  fund for qualification for a survivor benefit or annuity; 
121.14     (2) had credit for at least one-half year of allowable 
121.15  service with the most recent covered retirement plan before the 
121.16  date of death and was an active member of that covered 
121.17  retirement plan on the date of death; and 
121.18     (3) was not receiving a retirement annuity from any covered 
121.19  retirement plan on the date of death. 
121.20     Subd. 3.  [COMBINED SERVICE SURVIVOR BENEFIT COMPUTATION.] 
121.21  (a) The combined service survivor annuity or survivor benefit 
121.22  from each covered retirement plan must be based on the allowable 
121.23  service in each covered retirement plan, except as provided by 
121.24  paragraphs (b) to (f). 
121.25     (b) The survivor annuity or survivor benefit must be 
121.26  governed by the law in effect for each covered retirement plan 
121.27  on the date of the death of the deceased member. 
121.28     (c) All plans must base the survivor annuity or survivor 
121.29  benefit on the same average salary figure if the annuity or 
121.30  benefit is salary related. 
121.31     (d) If the method of the covered retirement plan used to 
121.32  compute a survivor benefit or annuity varies based on the length 
121.33  of allowable service credit, the benefit accrual formula 
121.34  percentages used by the plan must recognize the allowable 
121.35  service credit in the plan as a continuation of any previous 
121.36  allowable service credit with other covered retirement plans. 
122.1      (e) If the covered retirement plan is a defined benefit or 
122.2   formula plan and the method used to compute a survivor benefit 
122.3   or annuity does not vary based on the length of allowable 
122.4   service credit, the portion of the specified benefit or annuity 
122.5   amount from the covered retirement plan must bear the same 
122.6   proportion to the total specified benefit or annuity amount as 
122.7   the allowable service credit in that plan bears to the total 
122.8   allowable service credit in all covered retirement plans.  If 
122.9   the covered retirement plan is a defined contribution or 
122.10  nonformula plan, the survivor benefit amount for allowable 
122.11  service under the plan is not affected, but the service and 
122.12  covered salary under the plan must be used in calculations by 
122.13  other covered retirement plans. 
122.14     (f) A period for which a person has deceased member had 
122.15  allowable service credit in more than one covered retirement 
122.16  plan must be used only once in determining the total allowable 
122.17  service credit for calculating the combined service survivor 
122.18  annuity or survivor benefit.  A period of duplicated service 
122.19  credit must be handled as provided in section 356.30, 
122.20  subdivision 1, clause (3), items (i) and (j) paragraphs (g) and 
122.21  (h). 
122.22     (g) If a person is entitled to a minimum benefit payable 
122.23  from a public pension plan named in section 356.30, subdivision 
122.24  3, the person may receive additional credit for only those years 
122.25  of service in another covered pension plan that, when added to 
122.26  the years of service in the pension plan that is paying the 
122.27  minimum benefit, exceed the years of service on which the 
122.28  minimum benefit is based. 
122.29     Subd. 4.  [COVERED RETIREMENT PLANS.] This section applies 
122.30  to the following retirement plans: 
122.31     (1) the legislators retirement plan, established by chapter 
122.32  3A; 
122.33     (2) the general state employees retirement fund plan of the 
122.34  Minnesota state retirement system, established by chapter 352; 
122.35     (3) the correctional state employees retirement plan of the 
122.36  Minnesota state retirement system, established by chapter 352; 
123.1      (4) the state patrol retirement fund plan, established by 
123.2   chapter 352B; 
123.3      (5) the elective state officers retirement plan, 
123.4   established by chapter 352C; 
123.5      (6) the unclassified state employees retirement plan 
123.6   program, established by chapter 352D; 
123.7      (7) the general employees retirement plan of the public 
123.8   employees retirement association, established by chapter 353; 
123.9      (8) the public employees police and fire fund plan of the 
123.10  public employees retirement association, established by chapter 
123.11  353; 
123.12     (9) public employees the local government correctional 
123.13  service retirement plan of the public employees retirement 
123.14  association, established by chapter 353E; 
123.15     (10) the teachers retirement association, established by 
123.16  chapter 354; 
123.17     (11) the Duluth teachers retirement fund association, 
123.18  established by chapter 354A; 
123.19     (12) the Minneapolis teachers retirement fund association, 
123.20  established by chapter 354A; 
123.21     (13) the St. Paul teachers retirement fund association, 
123.22  established by chapter 354A; 
123.23     (14) the Minneapolis employees retirement fund, established 
123.24  by chapter 422A; and 
123.25     (15) the judges' retirement fund, established by sections 
123.26  490.121 to 490.132. 
123.27                        RETIREMENT ANNUITIES  
123.28     Sec. 22.  [356.315] [RETIREMENT BENEFIT FORMULA 
123.29  PERCENTAGES.] 
123.30     Subdivision 1.  [COORDINATED PLAN MEMBERS.] The applicable 
123.31  benefit accrual rate is 1.2 percent. 
123.32     Subd. 2.  [COORDINATED PLAN MEMBERS.] The applicable 
123.33  benefit accrual rate is 1.7 percent. 
123.34     Subd. 2a.  [COORDINATED MEMBERS.] The applicable benefit 
123.35  accrual rate is 2.0 percent. 
123.36     Subd. 3.  [BASIC PLAN MEMBERS.] The applicable benefit 
124.1   accrual rate is 2.2 percent. 
124.2      Subd. 4.  [BASIC PLAN MEMBERS.] The applicable benefit 
124.3   accrual rate is 2.7 percent. 
124.4      Subd. 5.  [CORRECTIONAL PLAN MEMBERS.] The applicable 
124.5   benefit accrual rate is 2.4 percent. 
124.6      Subd. 5a.  [LOCAL GOVERNMENT CORRECTIONAL SERVICE PLAN.] 
124.7   The applicable benefit accrual rate is 1.9 percent.  
124.8      Subd. 6.  [STATE TROOPERS PLAN AND POLICE AND FIRE PLAN 
124.9   MEMBERS.] The applicable benefit accrual rate is 3.0 percent. 
124.10     Subd. 7.  [JUDGES PLAN.] The applicable benefit accrual 
124.11  rate is 2.7 percent. 
124.12     Subd. 8.  [JUDGES PLAN.] The applicable benefit accrual 
124.13  rate is 3.2 percent. 
124.14     Subd. 9.  [FUTURE BENEFIT ACCRUAL RATE INCREASES.] After 
124.15  January 2, 1998, benefit accrual rate increases under this 
124.16  section must apply only to allowable service or formula service 
124.17  rendered after the effective date of the benefit accrual rate 
124.18  increase. 
124.19     Sec. 23.  Minnesota Statutes 2000, section 356.32, is 
124.20  amended to read: 
124.21     356.32 [PROPORTIONATE ANNUITY AT AGE 65.] 
124.22     Subdivision 1.  [PROPORTIONATE RETIREMENT ANNUITY.] (a) 
124.23  Notwithstanding any provision to the contrary of the laws 
124.24  governing any of the retirement funds referred to enumerated in 
124.25  subdivision 2, any person who is an active member of any 
124.26  applicable fund, who has credit for at least one year but less 
124.27  than ten years of allowable service in one or more of 
124.28  the applicable funds covered plans, and who terminates active 
124.29  service pursuant to under a mandatory retirement law or policy 
124.30  or at age 65 or older, or at the normal retirement age if this 
124.31  age is not age 65, for any reason shall be is entitled upon 
124.32  making written application on the form prescribed by executive 
124.33  director or executive secretary the chief administrative officer 
124.34  of the fund plan to a proportionate retirement annuity from each 
124.35  applicable fund covered plan in which the person has allowable 
124.36  service credit.  
125.1      (b) The proportionate annuity shall must be calculated 
125.2   under the applicable laws governing annuities based upon 
125.3   allowable service credit at the time of retirement and the 
125.4   person's average salary for the highest five successive years of 
125.5   allowable service or the average salary for the entire period of 
125.6   allowable service if less than five years.  
125.7      (c) Nothing in this section shall prevent prevents the 
125.8   imposition of the appropriate early retirement reduction of an 
125.9   annuity which commences prior to before the normal retirement 
125.10  age. 
125.11     Subd. 2.  [COVERED FUNDS RETIREMENT PLANS.] The provisions 
125.12  of this section shall apply to the following retirement 
125.13  funds plans: 
125.14     (1) the general state employees retirement fund plan of the 
125.15  Minnesota state retirement system, established pursuant to under 
125.16  chapter 352; 
125.17     (2) the correctional state employees retirement program 
125.18  plan of the Minnesota state retirement system, established 
125.19  pursuant to under chapter 352; 
125.20     (3) the state patrol retirement fund plan, 
125.21  established pursuant to under chapter 352B; 
125.22     (4) the general employees retirement plan of the public 
125.23  employees retirement fund association, established pursuant to 
125.24  under chapter 353; 
125.25     (5) the public employees police and fire fund plan of the 
125.26  public employees retirement association, established pursuant to 
125.27  under chapter 353; 
125.28     (6) the teachers retirement association, established 
125.29  pursuant to under chapter 354; 
125.30     (7) the Minneapolis employees retirement fund, established 
125.31  pursuant to under chapter 422A; 
125.32     (8) the Duluth teachers retirement fund association, 
125.33  established pursuant to under chapter 354A; 
125.34     (9) the Minneapolis teachers retirement fund association, 
125.35  established pursuant to under chapter 354A; and 
125.36     (10) the St. Paul teachers retirement fund association, 
126.1   established pursuant to under chapter 354A.  
126.2      Sec. 24.  Minnesota Statutes 2000, section 356.40, is 
126.3   amended to read: 
126.4      356.40 [DATE FOR PAYMENT OF ANNUITIES AND BENEFITS.] 
126.5      (a) Notwithstanding any law to the contrary, all annuities 
126.6   and benefits payable on and after December 1, 1977 by a covered 
126.7   retirement fund, as defined in section 356.30, subdivision 3, 
126.8   shall must be paid in advance for each month during the first 
126.9   week of that month.  The bylaws of municipal local retirement 
126.10  funds shall must be amended accordingly.  
126.11     (b) In no event, however, shall may this section authorize 
126.12  more than one payment in any one month where the law governing 
126.13  the applicable retirement fund as of June 30, 1977 already 
126.14  provides for the full payment or accrual of annuities and 
126.15  benefits in advance for each month or as of the first day of the 
126.16  month, nor shall it authorize the payment of both a retirement 
126.17  annuity and a surviving spouse's benefit in one month where the 
126.18  law governing the applicable retirement fund provides for the 
126.19  payment of the retired member's retirement annuity to the 
126.20  surviving spouse for the month in which the retired member dies. 
126.21     Sec. 25.  [356.403] [NORMAL RETIREMENT AGE; SAVINGS 
126.22  CLAUSE.] 
126.23     The intent of the legislature in sections 352.01, 
126.24  subdivision 25; 353.01, subdivision 37; 354.05, subdivision 38; 
126.25  and 354A.011, subdivision 15a, is to create a normal retirement 
126.26  age for persons first covered by those sections after May 16, 
126.27  1989, that is the same as the retirement age in the federal 
126.28  Social Security law, including future amendments to that law.  
126.29  If a court determines that the legislature may not incorporate 
126.30  by reference the future changes in federal Social Security law, 
126.31  the legislature reserves the right to amend the appropriate 
126.32  sections to make the normal retirement conform to the retirement 
126.33  age in the federal Social Security law.  No person first covered 
126.34  by any of those sections after May 16, 1989, has a right to a 
126.35  normal retirement age that is less than the retirement age in 
126.36  the federal Social Security law. 
127.1      Sec. 26.  [356.405] [COMBINED PAYMENT OF RETIREMENT 
127.2   ANNUITIES.] 
127.3      (a) The public employees retirement association and the 
127.4   Minnesota state retirement system are permitted to combine 
127.5   payments to retirees.  The total payment must be equal to the 
127.6   amount that is payable if payments were kept separate.  The 
127.7   retiree must agree, in writing, to have the payment combined. 
127.8      (b) Each plan must calculate the benefit amounts under the 
127.9   laws governing the plan and the required reserves and future 
127.10  mortality losses or gains must be paid or accrued to the plan 
127.11  from which the service was earned.  Each plan must account for 
127.12  its portion of the payment separately, and there may be no 
127.13  additional actuarial liabilities realized by either plan. 
127.14     (c) The plan making the payment would be responsible for 
127.15  issuing one payment, making address changes, tax withholding 
127.16  changes, and other administrative functions needed to process 
127.17  the payment. 
127.18                         SURVIVOR BENEFITS  
127.19     Sec. 27.  [356.406] [LOSS OF ENTITLEMENT TO BENEFITS FOR 
127.20  SURVIVOR CAUSING DEATH OF PENSION PLAN MEMBER.] 
127.21     Subdivision 1.  [DEFINITIONS.] (a) Each of the words or 
127.22  terms defined in this subdivision has the meaning indicated. 
127.23     (b) "Public pension plan" means any retirement plan or fund 
127.24  enumerated in section 356.20, subdivision 2, or 356.30, 
127.25  subdivision 3, any relief association governed by section 69.77 
127.26  or sections 69.771 to 69.775, any retirement plan governed by 
127.27  chapter 354B or 354C, the Hennepin county supplemental 
127.28  retirement plan governed by sections 383B.46 to 383B.52, or any 
127.29  housing and redevelopment authority retirement plan. 
127.30     (c) "Public pension plan member" means a person who is a 
127.31  participant covered by a public pension plan, a former 
127.32  participant of a public pension plan who has sufficient service 
127.33  to be entitled to receive a future retirement annuity or service 
127.34  pension, a recipient of a retirement annuity, service pension, 
127.35  or disability benefit from a public pension plan, or a former 
127.36  participant of a public pension plan who has member or employee 
128.1   contributions to the person's credit in the public pension plan. 
128.2      (d) "Survivor" means the surviving spouse, a former spouse, 
128.3   a surviving child, a joint annuitant, a designated recipient of 
128.4   a second or remainder portion of an optional annuity form, a 
128.5   beneficiary, or the estate of a deceased public pension plan 
128.6   member, as those terms are commonly understood or defined in the 
128.7   benefit plan document of the public pension plan. 
128.8      (e) "Survivor benefit" means a surviving spouse benefit, 
128.9   surviving child benefit, second or remainder portion of an 
128.10  optional annuity form, a death benefit, a funeral benefit, or a 
128.11  refund of member or employee contributions payable on account of 
128.12  the death of a public pension plan member as provided for in the 
128.13  benefit plan document of the public pension plan. 
128.14     Subd. 2.  [SUSPENSION OF SURVIVOR BENEFITS UPON FELONY 
128.15  CHARGE.] During the pendency of a charge of a survivor of a 
128.16  felony that caused the death of a public pension plan member, of 
128.17  criminal liability for a death by wrongful act felony, or of 
128.18  conspiracy to commit a death by wrongful act felony, the 
128.19  entitlement of that survivor to receive a survivor benefit is 
128.20  suspended. 
128.21     Subd. 3.  [FORFEITURE OF SURVIVOR BENEFITS UPON FELONY 
128.22  CONVICTION.] On final conviction of a survivor of a felony that 
128.23  caused the death of a public pension plan member, of criminal 
128.24  liability for a death by wrongful act felony, or of conspiracy 
128.25  to commit a death by wrongful act felony, the entitlement of 
128.26  that survivor to receive a survivor benefit is forfeited, 
128.27  including entitlement for any previously suspended survivor 
128.28  benefits under subdivision 2. 
128.29     Subd. 4.  [SUSPENSION OR FORFEITURE ACTIONS SEPARATE.] The 
128.30  charge of one survivor under subdivision 2 or the conviction of 
128.31  one survivor under subdivision 3 does not affect the entitlement 
128.32  of another survivor to a survivor benefit. 
128.33     Subd. 5.  [RECOVERY OF CERTAIN BENEFITS.] If monthly 
128.34  benefits or a refund or balance of a participant or former 
128.35  participant's account have already been paid to an individual 
128.36  who is later charged or convicted as described under this 
129.1   section, the executive director or chief administrative officer 
129.2   of the public pension plan shall attempt to recover the amounts 
129.3   paid.  Payment may be made to the next beneficiary or survivor 
129.4   only in an amount equal to the amount recovered and in the 
129.5   amount of any future payments that would legally accrue to 
129.6   another survivor under the applicable laws of the retirement 
129.7   plan. 
129.8      Subd. 6.  [DISPOSITION OF FORFEITED SURVIVOR BENEFITS.] If 
129.9   the benefit plan document governing the public pension plan does 
129.10  not provide for the disposition of forfeited benefits, survivor 
129.11  benefits forfeited under this section must be deposited in the 
129.12  general fund of the state. 
129.13     Sec. 28.  [356.407] [RESTORATION OF SURVIVOR BENEFITS.] 
129.14     Subdivision 1.  [RESTORATION UPON TERMINATION OF 
129.15  REMARRIAGE.] Notwithstanding any provision to the contrary of 
129.16  the laws governing any of the retirement plans enumerated in 
129.17  subdivision 2, any person who was receiving a surviving spouse's 
129.18  benefit from any of those plans and whose benefit terminated 
129.19  solely because of remarriage is, if the remarriage terminates 
129.20  for any reason, again entitled upon reapplication to a surviving 
129.21  spouse's benefit; provided, however, that the person is not 
129.22  entitled to retroactive payments for the period of remarriage.  
129.23  The benefit resumes at the level which the person would have 
129.24  been receiving if there had been no remarriage.  This section 
129.25  applies prospectively to any person who first becomes entitled 
129.26  to receive a surviving spouse's benefit on or after May 18, 
129.27  1975, and also applies retroactively to any person who first 
129.28  became entitled to receive a surviving spouse's benefit before 
129.29  May 18, 1975; provided, however, that no person is entitled to 
129.30  retroactive payments for any period of time before May 18, 1975. 
129.31     Subd. 2.  [COVERED FUNDS.] The provisions of this section 
129.32  apply to the following retirement funds: 
129.33     (1) the general employees retirement plan of the public 
129.34  employees retirement association established under chapter 353; 
129.35     (2) the public employees police and fire plan of the public 
129.36  employees retirement association established under chapter 353; 
130.1      (3) the state patrol retirement plan established under 
130.2   chapter 352B; 
130.3      (4) the legislators retirement plan established under 
130.4   chapter 3A; 
130.5      (5) the elective state officers retirement plan established 
130.6   under chapter 352C; 
130.7      (6) the teachers retirement association established under 
130.8   chapter 354; and 
130.9      (7) the Minneapolis employees retirement fund established 
130.10  under chapter 422A.  
130.11                      POSTRETIREMENT INCREASES  
130.12     Sec. 29.  Minnesota Statutes 2000, section 356.41, is 
130.13  amended to read: 
130.14     356.41 [BENEFIT ADJUSTMENTS FOR CERTAIN DISABILITY AND 
130.15  SURVIVOR BENEFITS.] 
130.16     Disability benefits payable to a disabilitant, if not 
130.17  otherwise included in the participation in the Minnesota 
130.18  postretirement investment fund, and survivor benefits payable to 
130.19  a survivor from any public pension fund plan which participates 
130.20  in the Minnesota postretirement investment fund shall must be 
130.21  adjusted in the same manner, at the same times and in the same 
130.22  amounts as are benefits payable from the Minnesota 
130.23  postretirement investment fund to eligible benefit recipients of 
130.24  that public pension fund plan.  If a disability benefit is not 
130.25  included in the participation in the Minnesota postretirement 
130.26  investment fund, the disability benefit is recomputed as a 
130.27  retirement annuity and the recipient would have been eligible 
130.28  for an adjustment pursuant to under this section if the 
130.29  disability benefit was not recomputed, the recipient will 
130.30  continue to be remains eligible for the adjustment pursuant to 
130.31  under this section after the recomputation.  For the survivor of 
130.32  a deceased annuitant who receives a survivor benefit 
130.33  calculated pursuant to under a prior law rather than the second 
130.34  portion of a joint and survivor annuity, any period of receipt 
130.35  of a retirement annuity by the annuitant shall must be utilized 
130.36  in determining the period of receipt for eligibility to receive 
131.1   an adjustment pursuant to under this section.  No recipient 
131.2   shall, however, be is entitled to more than one adjustment 
131.3   pursuant to under this section or section 11A.18 applicable to 
131.4   one benefit at one time by reason of this section.  
131.5      Sec. 30.  [356.42] [POSTRETIREMENT ADJUSTMENT; LUMP SUM 
131.6   PAYMENTS.] 
131.7      Subdivision 1.  [ENTITLEMENT.] A person who is receiving a 
131.8   retirement annuity, a disability benefit, or a surviving 
131.9   spouse's annuity or benefit from a retirement fund specified in 
131.10  subdivision 3, clauses (1) to (8), is entitled to receive a 
131.11  postretirement adjustment from the applicable retirement fund in 
131.12  the amount specified in subdivision 2, if the annuity or benefit 
131.13  was computed under: 
131.14     (1) the laws in effect before June 1, 1973, if the person 
131.15  is receiving an annuity or benefit from the retirement fund 
131.16  specified in subdivision 3, clause (4); 
131.17     (2) the laws in effect before July 1, 1973, if the person 
131.18  is receiving an annuity or benefit from a retirement fund 
131.19  specified in subdivision 3, clause (1), (2), (3), or (5); 
131.20     (3) the metropolitan transit commission transit operating 
131.21  division employees retirement fund plan document in effect on or 
131.22  before December 31, 1977, if the person is receiving a 
131.23  retirement annuity, a disability benefit, or a surviving 
131.24  spouse's annuity or benefit from the retirement fund specified 
131.25  in subdivision 3, clause (5); 
131.26     (4) the laws in effect before May 1, 1974, and before any 
131.27  adjustment under Laws 1987, chapter 372, article 3, if the 
131.28  person is receiving an annuity or benefit from the retirement 
131.29  fund specified in subdivision 3, clause (6); 
131.30     (5) the laws in effect before January 1, 1970, if the 
131.31  person is receiving an annuity or benefit from the retirement 
131.32  fund specified in subdivision 3, clause (7); or 
131.33     (6) the laws in effect before June 30, 1971, if the person 
131.34  is receiving an annuity or benefit from the retirement fund 
131.35  specified in subdivision 3, clause (8). 
131.36     Subd. 2.  [AMOUNT OF POSTRETIREMENT ADJUSTMENT; PAYMENT.] 
132.1   (a) For any person receiving an annuity or benefit on November 
132.2   30, 1989, and entitled to receive a postretirement adjustment 
132.3   under subdivision 1, the postretirement adjustment is a lump sum 
132.4   payment calculated under paragraph (b) or (c). 
132.5      (b) For coordinated plan annuity or benefit recipients, the 
132.6   postretirement adjustment in 1989 is $25 for each full year of 
132.7   allowable service credited to the person by the respective 
132.8   retirement fund.  In 1990 and each following year, the 
132.9   postretirement adjustment is the amount payable in the preceding 
132.10  year increased by the same percentage applied to regular 
132.11  annuities paid from the postretirement fund or, for the 
132.12  retirement funds specified in subdivision 3, clauses (6), (7), 
132.13  and (8), by the same percentage applied under the articles of 
132.14  incorporation and bylaws of these funds. 
132.15     (c) For basic plan annuity or benefit recipients, the 
132.16  postretirement adjustment in 1989 is the greater of: 
132.17     (1) $25 for each full year of allowable service credited to 
132.18  the person by the respective retirement fund; or 
132.19     (2) the difference between: 
132.20     (i) the product of $400 times the number of full years of 
132.21  allowable service credited to the person by the respective 
132.22  retirement fund; and 
132.23     (ii) the sum of the benefits payable to the person from any 
132.24  Minnesota public employee pension plan, and cash benefits 
132.25  payable to the person from the Social Security Administration. 
132.26     In 1990 and each following year, each eligible basic plan 
132.27  annuity or benefit recipient shall receive the amount received 
132.28  in the preceding year increased by the same percentage applied 
132.29  to regular annuities paid from the postretirement fund or, for 
132.30  the retirement funds specified in subdivision 3, clauses (6), 
132.31  (7), and (8), by the same percentage applied under the articles 
132.32  of incorporation and bylaws of these funds. 
132.33     (d) The postretirement adjustment provided for in this 
132.34  section must be paid on December 1 to those persons receiving an 
132.35  annuity or benefit on the preceding November 30.  This section 
132.36  does not authorize the payment of a postretirement adjustment to 
133.1   an estate if the annuity or benefit recipient dies before the 
133.2   November 30 eligibility date.  The postretirement adjustment 
133.3   provided for in this section must be paid automatically unless 
133.4   the intended recipient files a written notice with the 
133.5   retirement fund requesting that the postretirement adjustment 
133.6   not be paid or returns the amount of adjustment to the 
133.7   retirement fund.  Written notice of the waiver of the 
133.8   postretirement adjustment is irrevocable for the year during 
133.9   which it was made. 
133.10     Subd. 3.  [COVERED RETIREMENT PLANS.] The postretirement 
133.11  adjustment provided in this section applies to the following 
133.12  retirement funds: 
133.13     (1) the general employees retirement plans of the public 
133.14  employees retirement association; 
133.15     (2) the public employees police and fire plan of the public 
133.16  employees retirement association; 
133.17     (3) the teachers retirement association; 
133.18     (4) the state patrol retirement plan; 
133.19     (5) the state employees retirement plan of the Minnesota 
133.20  state retirement system; 
133.21     (6) the Minneapolis teachers retirement fund association 
133.22  established under chapter 354A; 
133.23     (7) the St. Paul teachers retirement fund association 
133.24  established under chapter 354A; and 
133.25     (8) the Duluth teachers retirement fund association 
133.26  established under chapter 354A. 
133.27     Sec. 31.  [356.43] [SUPPLEMENTAL BENEFIT; LUMP SUM 
133.28  PAYMENTS; MINNEAPOLIS EMPLOYEES RETIREMENT FUND.] 
133.29     Subdivision 1.  [ENTITLEMENT.] Any person who is receiving 
133.30  either an annuity that was computed under the laws in effect 
133.31  before March 5, 1974, or a "$2 bill and annuity" annuity from 
133.32  the Minneapolis employees retirement fund is entitled to receive 
133.33  a supplemental benefit lump sum payment from the retirement fund 
133.34  in the amount specified in subdivision 2.  
133.35     Subd. 2.  [AMOUNT OF PAYMENT.] (a) For any person receiving 
133.36  an annuity or benefit on November 30, 1991, and entitled to 
134.1   receive a supplemental benefit lump sum payment under 
134.2   subdivision 1, the payment is $28 for each full year of 
134.3   allowable service credited to the person by the retirement fund. 
134.4      In 1992 and each following year, each eligible benefit 
134.5   recipient is entitled to receive the amount received in the 
134.6   preceding year increased by the same percentage applied on the 
134.7   most recent January 1 to regular annuities paid from the 
134.8   Minneapolis employees retirement fund. 
134.9      (b) The payment provided for in this section is payable on 
134.10  December 1, 1991, to those persons receiving an annuity or 
134.11  benefit on November 30, 1991.  In subsequent years, the payment 
134.12  must be made on December 1 to those persons receiving an annuity 
134.13  or benefit on the preceding November 30.  This section does not 
134.14  authorize payment to an estate if the annuity or benefit 
134.15  recipient dies before the November 30 eligibility date.  The 
134.16  payment provided for in this section must be paid automatically 
134.17  unless the intended recipient files a written notice with the 
134.18  retirement fund requesting that it not be paid. 
134.19     Subd. 3.  [STATE APPROPRIATION.] Payments under this 
134.20  section are the responsibility of the Minneapolis employees 
134.21  retirement fund.  A separate state aid is provided toward the 
134.22  level dollar amortized cost of the payments.  For state fiscal 
134.23  years 1992 to 2001 inclusive, there is appropriated annually 
134.24  $550,000 from the general fund to the commissioner of finance to 
134.25  be added, in quarterly installments, to the annual state 
134.26  contribution amount determined under section 422A.101, 
134.27  subdivision 3.  After fiscal year 2001, any difference between 
134.28  the cumulative benefit amounts actually paid under this section 
134.29  after fiscal year 1991 and the amounts paid to the retirement 
134.30  fund by the state under this subdivision, plus investment 
134.31  earnings on the aid, shall be included by the retirement fund 
134.32  board and the actuary retained by the legislative commission on 
134.33  pensions and retirement in determining the financial 
134.34  requirements of the fund and contributions under section 
134.35  422A.101. 
134.36     Sec. 32.  [356.431] [CONVERSION OF LUMP-SUM POSTRETIREMENT 
135.1   AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.] 
135.2      Subdivision 1.  [LUMP-SUM POSTRETIREMENT PAYMENT 
135.3   CONVERSION.] For benefits paid after December 31, 2001, to 
135.4   eligible persons under sections 356.42 and 356.43, the amount of 
135.5   the most recent lump-sum benefit payable to an eligible 
135.6   recipient under sections 356.86 and 356.865, must be divided by 
135.7   12.  The result must be added to the monthly annuity or benefit 
135.8   otherwise payable to an eligible recipient, must become a 
135.9   permanent part of the benefit recipient's pension, and must be 
135.10  included in any pension benefit subject to future increases. 
135.11     Subd. 2.  [TRANSFER OF REQUIRED RESERVES TO MINNESOTA 
135.12  POSTRETIREMENT INVESTMENT FUND.] Public employee retirement 
135.13  funds participating in the state board of investment 
135.14  postretirement investment fund shall transfer the required 
135.15  reserves for the postretirement conversion under subdivision 1 
135.16  to the postretirement investment fund by January 31, 2002. 
135.17                              REFUNDS
135.18     Sec. 33.  [356.44] [PARTIAL PAYMENT OF PENSION PLAN 
135.19  REFUND.] 
135.20     (a) Notwithstanding any provision of law to the contrary, a 
135.21  member of a pension plan listed in section 356.30, subdivision 
135.22  3, with at least two years of forfeited service taken from a 
135.23  single pension plan may repay a portion of all refunds.  A 
135.24  partial refund repayment must comply with this section. 
135.25     (b) The minimum portion of a refund repayment is one-third 
135.26  of the total service credit period of all refunds taken from a 
135.27  single plan.  
135.28     (c) The cost of the partial refund repayment is the product 
135.29  of the cost of the total repayment multiplied by the ratio of 
135.30  the restored service credit to the total forfeited service 
135.31  credit.  The total repayment amount includes interest at the 
135.32  annual rate of 8.5 percent, compounded annually, from the refund 
135.33  date to the date repayment is received.  
135.34     (d) The restored service credit is allocated based on the 
135.35  relationship the restored service bears to the total service 
135.36  credit period for all refunds taken from a single pension plan. 
136.1      (e) This section does not authorize a public pension plan 
136.2   member to repay a refund if the law governing the plan does not 
136.3   authorize the repayment of a refund of member contributions. 
136.4      Sec. 34.  [356.441] [REPAYMENT OF REFUNDS.] 
136.5      Repayment of a refund and interest on that refund permitted 
136.6   under laws governing any public pension plan in Minnesota may be 
136.7   made with funds distributed from a plan qualified under the 
136.8   federal Internal Revenue Code of 1986, section 401(a), as 
136.9   amended through December 31, 1988, or an annuity qualified under 
136.10  the federal Internal Revenue Code of 1986, section 403(a).  
136.11  Repayment may also be made with funds distributed from an 
136.12  individual retirement account used solely to receive a 
136.13  nontaxable rollover from that type of a plan or annuity.  The 
136.14  repaid refund must be separately accounted for as member 
136.15  contributions not previously taxed.  Before accepting any 
136.16  transfers to which this section applies, the executive director 
136.17  must require the member to provide written documentation to 
136.18  demonstrate that the amounts to be transferred are eligible for 
136.19  a tax-free rollover and qualify for that treatment under the 
136.20  federal Internal Revenue Code of 1986.  
136.21                       OPTIONAL ANNUITY FORMS
136.22     Sec. 35.  [356.46] [APPLICATION FOR RETIREMENT ANNUITY; 
136.23  PROCEDURE FOR ELECTING ANNUITY FORM.] 
136.24     Subdivision 1.  [DEFINITIONS.] As used in this section, 
136.25  each of the following terms shall have the meaning given. 
136.26     (a) "Annuity form" means the payment procedure and duration 
136.27  of a retirement annuity or disability benefit available to a 
136.28  member of a public pension fund, based on the period over which 
136.29  a retirement annuity or disability benefit is payable, 
136.30  determined by the number of persons to whom the retirement 
136.31  annuity or disability benefit is payable, and the amount of the 
136.32  retirement annuity or disability benefit which is payable to 
136.33  each person. 
136.34     (b) "Joint and survivor optional annuity" means an optional 
136.35  annuity form which provides a retirement annuity or disability 
136.36  benefit to a retired member and the spouse of the member on a 
137.1   joint basis during the lifetime of the retired member and all or 
137.2   a portion of the original retirement annuity or disability 
137.3   benefit amount to the surviving spouse in the event of the death 
137.4   of the retired member. 
137.5      (c) "Optional annuity form" means an annuity form which is 
137.6   elected by a member and is not provided automatically as the 
137.7   standard annuity form of the public pension plan. 
137.8      (d) "Public pension plan" means a public pension plan as 
137.9   defined pursuant to section 356.615, paragraph (b). 
137.10     (e) "Retirement annuity" means a series of monthly payments 
137.11  to which a former or retired member of a public pension fund is 
137.12  entitled on account of attaining a specified age and acquiring 
137.13  credit for a specified period of service, which includes a 
137.14  retirement annuity, retirement allowance, or service pension.  
137.15     (f) "Disability benefit" means a series of monthly payments 
137.16  to which a former or disabled member of a public pension fund is 
137.17  entitled on account of a physical or mental inability to engage 
137.18  in specified employment. 
137.19     Subd. 2.  [PROVISION OF INFORMATION ON ANNUITY FORMS.] 
137.20  Every public pension plan which provides for an annuity form 
137.21  other than a single life retirement annuity as an option which 
137.22  can be elected by an active, disabled, or retiring member shall 
137.23  provide as a part of, or accompanying the annuity application 
137.24  form, a written statement summarizing the optional annuity forms 
137.25  which are available, a general indication of the consequences of 
137.26  selecting one annuity form over another, a calculation of the 
137.27  actuarial reduction in the amount of the retirement annuity 
137.28  which would be required for each optional annuity form, and the 
137.29  procedure to be followed to obtain more information from the 
137.30  public pension fund concerning the optional annuity forms 
137.31  provided by the plan. 
137.32     Subd. 3.  [REQUIREMENT OF NOTICE TO MEMBER'S SPOUSE.] (a) 
137.33  If a public pension plan provides optional retirement annuity 
137.34  forms which include a joint and survivor optional retirement 
137.35  annuity form potentially applicable to the surviving spouse of a 
137.36  member, the executive director of the public pension plan shall 
138.1   send a copy of the written statement required by subdivision 2 
138.2   to the spouse of the member before the member's election of an 
138.3   optional retirement annuity.  
138.4      (b) Following the election of a retirement annuity by the 
138.5   member, a copy of the completed retirement annuity application 
138.6   and retirement annuity beneficiary form, if applicable, must be 
138.7   sent by the public pension plan to the spouse of the retiring 
138.8   member.  A signed acknowledgment must be required from the 
138.9   spouse confirming receipt of a copy of the completed retirement 
138.10  annuity application and retirement annuity beneficiary form 
138.11  unless the spouse's signature confirming the receipt is on the 
138.12  annuity application form.  If the required signed acknowledgment 
138.13  is not received from the spouse within 30 days, the public 
138.14  pension plan must send another copy of the completed retirement 
138.15  annuity application and retirement annuity beneficiary form, if 
138.16  applicable, to the spouse by certified mail with restricted 
138.17  delivery. 
138.18     Sec. 36.  [356.465] [SUPPLEMENTAL NEEDS TRUST AS OPTIONAL 
138.19  ANNUITY FORM RECIPIENT.] 
138.20     Subdivision 1.  [INCLUSION AS RECIPIENT.] Notwithstanding 
138.21  any provision to the contrary of the laws, articles of 
138.22  incorporation, or bylaws governing a covered retirement plan 
138.23  specified in subdivision 3, a retiring member may designate a 
138.24  qualified supplemental needs trust under subdivision 2 as the 
138.25  remainder recipient on an optional retirement annuity form for a 
138.26  period not to exceed the lifetime of the beneficiary of the 
138.27  supplemental needs trust. 
138.28     Subd. 2.  [DEFINITION OF QUALIFIED SUPPLEMENTAL NEEDS 
138.29  TRUST.] A qualified supplemental needs trust is a trust that: 
138.30     (1) was established on or after July 1, 1992; 
138.31     (2) was established solely for the benefit of one person 
138.32  who has a disability under federal Social Security 
138.33  Administration supplemental security income or retirement, 
138.34  survivors, and disability insurance disability determination 
138.35  standards and who was determined as such before the creation of 
138.36  the trust; 
139.1      (3) is funded, in whole or in part, by the primary 
139.2   recipient of the optional annuity form and, unless the trust is 
139.3   a Zebley trust, is not funded by the beneficiary, the 
139.4   beneficiary's spouse, or a person who is required to pay a sum 
139.5   to or for the trust beneficiary under the terms of litigation or 
139.6   a litigation settlement; 
139.7      (4) is established to cover reasonable living expenses and 
139.8   other basic needs of the disabilitant, in whole or in part, in 
139.9   instances when public assistance does not provide sufficiently 
139.10  for these needs; 
139.11     (5) is not permitted to make disbursement to replace or 
139.12  reduce public assistance otherwise available; 
139.13     (6) is irrevocable; 
139.14     (7) terminates upon the death of the disabled person for 
139.15  whose benefit it was established; and 
139.16     (8) is determined by the executive director to be a trust 
139.17  that contains excluded assets for purposes of the qualification 
139.18  for public entitlement benefits under the applicable federal and 
139.19  state laws and regulations. 
139.20     Subd. 3.  [COVERED RETIREMENT PLANS.] The provisions of 
139.21  this section apply to the following retirement plans: 
139.22     (1) the general state employees retirement plan of the 
139.23  Minnesota state retirement system established under chapter 352; 
139.24     (2) the correctional state employees retirement plan of the 
139.25  Minnesota state retirement system established under chapter 352; 
139.26     (3) the state patrol retirement plan established under 
139.27  chapter 352B; 
139.28     (4) the legislators retirement plan established under 
139.29  chapter 3A; 
139.30     (5) the judges retirement plan established under chapter 
139.31  490; 
139.32     (6) the general employees retirement plan of the public 
139.33  employees retirement association established under chapter 353; 
139.34     (7) the public employees police and fire plan of the public 
139.35  employees retirement association established under chapter 353; 
139.36     (8) the teachers retirement plan established under chapter 
140.1   354; 
140.2      (9) the Duluth teachers retirement fund association 
140.3   established under chapter 354A; 
140.4      (10) the St. Paul teachers retirement fund association 
140.5   established under chapter 354A; 
140.6      (11) the Minneapolis teachers retirement fund association 
140.7   established under chapter 354A; 
140.8      (12) the Minneapolis employees retirement plan established 
140.9   under chapter 422A; 
140.10     (13) the Minneapolis firefighters relief association 
140.11  established under chapter 69; 
140.12     (14) the Minneapolis police relief association established 
140.13  under chapter 423B; and 
140.14     (15) the local government correctional service retirement 
140.15  plan of the public employees retirement association established 
140.16  under chapter 353E. 
140.17             REEMPLOYED ANNUITANT EARNINGS DISPOSITION
140.18     Sec. 37.  [356.47] [DISPOSITION OF AMOUNT IN EXCESS OF 
140.19  REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.] 
140.20     Subdivision 1.  [APPLICATION.] This section applies to the 
140.21  balance of annual retirement annuities on the amount of 
140.22  retirement annuity reductions after reemployed annuitant 
140.23  earnings limitations for retirement plans governed by section 
140.24  352.115, subdivision 10; 353.37; 354.44, subdivision 5; or 
140.25  354A.31, subdivision 3. 
140.26     Subd. 2.  [RECORDKEEPING; REPORTING.] The chief 
140.27  administrative officer of each retirement plan shall keep 
140.28  records for each reemployed annuitant of the amount of the 
140.29  annuity reduction.  This amount must be reported to each member 
140.30  at least once each year. 
140.31     Subd. 3.  [PAYMENT.] (a) Upon the retired member attaining 
140.32  the age of 65 years or upon the first day of the month next 
140.33  following the month occurring one year after the termination of 
140.34  the reemployment that gave rise to the limitation, whichever is 
140.35  later, and the filing of a written application, the retired 
140.36  member is entitled to the payment, in a lump sum, of the value 
141.1   of the person's amount under subdivision 2, plus interest at the 
141.2   compound annual rate of six percent from the date that the 
141.3   amount was deducted from the retirement annuity to the date of 
141.4   payment. 
141.5      (b) The written application must be on a form prescribed by 
141.6   the chief administrative officer of the applicable retirement 
141.7   plan. 
141.8      (c) If the retired member dies before the payment provided 
141.9   for in paragraph (a) is made, the amount is payable, upon 
141.10  written application, to the deceased person's surviving spouse, 
141.11  or if none, to the deceased person's designated beneficiary, or 
141.12  if none, to the deceased person's estate. 
141.13                  MARRIAGE DISSOLUTION RETIREMENT
141.14                        COVERAGE INFORMATION
141.15     Sec. 38.  [356.49] [PROVISION OF INFORMATION IN THE EVENT 
141.16  OF MARRIAGE DISSOLUTION.] 
141.17     Subdivision 1.  [INFORMATION FOR A PENDING MARRIAGE 
141.18  DISSOLUTION.] (a) Upon receipt of a written request by a person 
141.19  with access to the data under subdivision 3 who cites this 
141.20  statute, a public or private pension plan administrator must 
141.21  provide the court and the parties to a marriage dissolution 
141.22  action involving a plan member or former plan member with 
141.23  information regarding pension benefits or rights of the plan 
141.24  member or former plan member.  The pension plan shall provide 
141.25  this information upon the request of the court or a party to the 
141.26  action without requiring a signed authorization from the plan 
141.27  member or former plan member. 
141.28     (b) The information must include the pension benefits or 
141.29  rights of the plan member or former plan member as of the first 
141.30  day of the month following the date of the request, or as of the 
141.31  end of the previous fiscal year for the plan, and as of the date 
141.32  of valuation of marital assets under section 518.58, if the 
141.33  person requesting the information specifies that date.  The 
141.34  information must include the accrued service credit of the 
141.35  person, the credited salary of the person for the most current 
141.36  five-year period, a summary of the benefit plan, and any other 
142.1   information relevant to the calculation of the present value of 
142.2   the benefits or rights. 
142.3      Subd. 2.  [INFORMATION FOR AN EXISTING DISSOLUTION DECREE.] 
142.4   If a marriage dissolution decree rendered by a court of 
142.5   competent jurisdiction prior to August 1, 1987, provided a 
142.6   procedure for the distribution of future pension plan payments, 
142.7   upon request the applicable pension plan administrator shall 
142.8   provide on a timely basis to the court and the parties to the 
142.9   action the required information to implement that procedure 
142.10  without requiring a signed authorization from the plan member or 
142.11  former plan member. 
142.12     Subd. 3.  [ACCESS TO DATA.] Notwithstanding any provision 
142.13  of chapter 13 to the contrary, an administrator may release 
142.14  private or confidential data on individuals to the court, the 
142.15  parties to a marriage dissolution, their attorneys, and an 
142.16  actuary appointed under section 518.582, to the extent necessary 
142.17  to comply with this section, but only if the administrator has 
142.18  received a copy of the legal petition showing that an action for 
142.19  marriage dissolution has commenced and a copy of the affidavit 
142.20  of service showing that the petition has been served on the 
142.21  responding party to the action. 
142.22                   SERVICE AND SALARY CREDIT UPON
142.23                         WRONGFUL DISCHARGE
142.24     Sec. 39.  Minnesota Statutes 2000, section 356.50, is 
142.25  amended to read: 
142.26     356.50 [SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN 
142.27  THE EVENT OF WRONGFUL DISCHARGE.] 
142.28     (a) A person who is wrongfully discharged from public 
142.29  employment that gave rise to coverage by a public employee 
142.30  pension plan listed enumerated in section 356.30, subdivision 3, 
142.31  is entitled to obtain allowable service credit from the 
142.32  applicable public employee pension plan for the applicable 
142.33  period caused by the wrongful discharge.  
142.34     (b) A person is wrongfully discharged for purposes of this 
142.35  section if: 
142.36     (1) the person has been determined by a court of competent 
143.1   jurisdiction or an arbitrator in binding arbitration to have 
143.2   been wrongfully discharged from public employment; 
143.3      (2) the person received an award of back pay with respect 
143.4   to that discharge; and 
143.5      (3) the award does not include any amount for any lost or 
143.6   interrupted public pension plan coverage. 
143.7      (b) (c) To obtain the public pension plan allowable service 
143.8   credit, the person shall pay the required member contribution 
143.9   amount.  The required member contribution amount is the member 
143.10  contribution rate or rates in effect for the pension plan during 
143.11  the period of service covered by the back pay award, applied to 
143.12  the unpaid gross salary amounts of the back pay award including 
143.13  reemployment insurance, workers' compensation or wages from 
143.14  other sources which reduced the back award.  No contributions 
143.15  shall be made under this clause for compensation covered by a 
143.16  public pension plan listed in section 356.30, subdivision 3, for 
143.17  employment during the removal period.  The person shall pay the 
143.18  required member contribution amount within 60 days of the date 
143.19  of receipt of the back pay award, within 60 days of April 14, 
143.20  1992, or within 60 days of a billing from the retirement fund, 
143.21  whichever is later. 
143.22     (c) (d) The public employer who wrongfully discharged the 
143.23  public employee must pay an employer contribution on the back 
143.24  pay award.  The employer contribution must be based on the 
143.25  employer contribution rate or rates in effect for the pension 
143.26  plan during the period of service covered by the back pay award, 
143.27  applied to the salary amount on which the member contribution 
143.28  amount was determined under paragraph (b) (c).  Interest on both 
143.29  the required member and employer contribution amount must be 
143.30  paid by the employer at the annual compound rate of 8.5 percent 
143.31  per year, expressed monthly, between the date the contribution 
143.32  amount would have been paid to the date of actual payment.  The 
143.33  employer payment must be made within 30 days of the payment 
143.34  under paragraph (b) (c). 
143.35     Sec. 40.  Minnesota Statutes 2000, section 356.55, as 
143.36  amended by Laws 2001, First Special Session chapter 10, article 
144.1   6, section 16, is amended to read: 
144.2      356.55 [PRIOR SERVICE CREDIT PURCHASE PAYMENT AMOUNT 
144.3   DETERMINATION PROCEDURE.] 
144.4      Subdivision 1.  [APPLICATION.] (a) Unless the prior service 
144.5   credit purchase authorization special law or general statute 
144.6   provision explicitly specifies a different purchase payment 
144.7   amount determination procedure, this section governs the 
144.8   determination of the prior service credit purchase payment 
144.9   amount of any prior service credit purchase.  
144.10     (b) The purchase payment amount determination procedure 
144.11  must recognize any service credit accrued to the purchaser in a 
144.12  pension plan listed enumerated in section 356.30, subdivision 3. 
144.13     (c) Any service credit in a Minnesota defined benefit 
144.14  public employee pension plan available to be reinstated by the 
144.15  purchaser through the repayment of a refund of member or 
144.16  employee contributions previously received must be repaid in 
144.17  full before any purchase of prior service credit payment is made 
144.18  under this section. 
144.19     Subd. 2.  [DETERMINATION.] (a) Unless the prior service 
144.20  credit purchase minimum purchase payment amount determined under 
144.21  paragraph (d) is greater, the prior service credit purchase 
144.22  amount is the result obtained by subtracting the amount 
144.23  determined under paragraph (c) from the amount determined under 
144.24  paragraph (b). 
144.25     (b) The present value of the unreduced single life 
144.26  retirement annuity, with the purchase of the additional service 
144.27  credit included, must be calculated as follows: 
144.28     (1) the age at first eligibility for an unreduced single 
144.29  life retirement annuity, including the purchase of the 
144.30  additional service credit, must be determined; 
144.31     (2) the length of total service credit, including the 
144.32  period of the purchase of the additional service credit, at the 
144.33  age determined under clause (1) must be determined; 
144.34     (3) the highest five successive years average salary at the 
144.35  age determined under clause (1), assuming five percent annual 
144.36  compounding salary increases from the most current annual salary 
145.1   amount at the age determined under clause (1), must be 
145.2   determined; 
145.3      (4) using the benefit accrual rate or rates applicable to 
145.4   the prospective purchaser of the service credit based on the 
145.5   prospective purchaser's actual date of entry into covered 
145.6   service, the length of service determined under clause (2), and 
145.7   the final average salary determined under clause (3), the annual 
145.8   unreduced single life retirement annuity amount must be 
145.9   determined; 
145.10     (5) the actuarial present value of the projected annual 
145.11  unreduced single life retirement annuity amount determined under 
145.12  clause (4) at the age determined under clause (1), using the 
145.13  same actuarial factor that the plan would use to determine 
145.14  actuarial equivalence for optional annuity forms and related 
145.15  purposes, must be determined; and 
145.16     (6) the discounted value of the amount determined under 
145.17  clause (5) to the date of the prospective purchase, using an 
145.18  interest rate of 8.5 percent and no mortality probability 
145.19  decrement, must be determined. 
145.20     (c) The present value of the unreduced single life 
145.21  retirement annuity, without the purchase of the additional 
145.22  service credit included, must be calculated as follows:  
145.23     (1) the age at first eligibility for an unreduced single 
145.24  life retirement annuity, not including the purchase of 
145.25  additional service credit, must be determined; 
145.26     (2) the length of accrued service credit, without the 
145.27  period of the purchase of the additional service credit, at the 
145.28  age determined under clause (1), must be determined; 
145.29     (3) the highest five successive years average salary at the 
145.30  age determined under clause (1), assuming five percent annual 
145.31  compounding salary increases from the most current annual salary 
145.32  amount to the age determined under clause (1), must be 
145.33  determined; 
145.34     (4) using the benefit accrual rate or rates applicable to 
145.35  the prospective purchaser of the service credit based on the 
145.36  prospective purchaser's actual date of entry into covered 
146.1   service the length of service credit determined under clause 
146.2   (2), and the final average salary determined under clause (3), 
146.3   the annual unreduced single life retirement annuity amount must 
146.4   be determined; 
146.5      (5) the actuarial present value of the projected annual 
146.6   unreduced single life retirement annuity amount determined under 
146.7   clause (4) at the age determined under clause (1), using the 
146.8   same actuarial factor that the plan would use to determine 
146.9   actuarial equivalence for optional annuity forms and related 
146.10  purposes, must be determined; 
146.11     (6) the discounted value of the amount determined under 
146.12  clause (5) to the date of the prospective purchase, using an 
146.13  interest rate of 8.5 percent and no mortality probability 
146.14  decrement, must be determined; and 
146.15     (7) the net value of the discounted value determined under 
146.16  clause (6), must be determined by applying a service ratio, 
146.17  where the numerator is the total length of credited service 
146.18  determined under paragraph (b), clause (2), reduced by the 
146.19  period of the additional service credit proposed to be 
146.20  purchased, and where the denominator is the total length of 
146.21  service credit determined under clause (2). 
146.22     (d) The minimum prior service credit purchase payment 
146.23  amount is the amount determined by multiplying the most current 
146.24  annual salary of the prospective purchaser by the combined 
146.25  current employee, employer, and any additional employer 
146.26  contribution rates for the applicable pension plan and by 
146.27  multiplying that result by the number of years of service or 
146.28  fractions of years of service of the potential service credit 
146.29  purchase. 
146.30     Subd. 3.  [SOURCE OF DETERMINATION.] The prior service 
146.31  credit purchase payment amounts under subdivision 2 must be 
146.32  calculated by the chief administrative officer of the public 
146.33  pension plan using a prior service credit purchase payment 
146.34  amount determination process that has been verified for accuracy 
146.35  and consistency under this section by the commission-retained 
146.36  actuary.  That verification must be in writing and must occur 
147.1   before the first prior service credit purchase for the plan 
147.2   under this section is accepted and every five years thereafter 
147.3   or whenever the preretirement interest rate, postretirement 
147.4   interest rate, payroll growth, or mortality actuarial assumption 
147.5   for the applicable pension plan is modified under section 
147.6   356.215, whichever occurs first. 
147.7      Subd. 4.  [PRIOR SERVICE CREDIT PURCHASE PROCESSING FEE.] A 
147.8   public pension plan may establish a fee to be charged to the 
147.9   prospective purchaser for processing a prior service credit 
147.10  purchase application and the prior service credit purchase 
147.11  payment amount calculation.  The fee must be established by the 
147.12  governing board of the pension plan and must be uniform for 
147.13  comparable service credit purchase situations or actuarial 
147.14  calculation requests.  The prior service credit purchase 
147.15  processing fee structure must be published by the chief 
147.16  administrative officer of the applicable retirement plan in the 
147.17  State Register. 
147.18     Subd. 5.  [PAYMENT RESPONSIBILITY; EMPLOYER OPTION.] Unless 
147.19  the prior service credit purchase authorization special law or 
147.20  general statute provision explicitly specifies otherwise, the 
147.21  prior service credit purchase payment amount determined under 
147.22  subdivision 2 is payable by the purchaser, but.  However, the 
147.23  former employer of the purchaser or the current employer of the 
147.24  purchaser may, at its discretion, pay all or a portion of the 
147.25  purchase payment amount in excess of an amount equal to the 
147.26  employee contribution rate or rates in effect during the prior 
147.27  service period applied to the actual salary rates in effect 
147.28  during the prior service period, plus annual compound interest 
147.29  at the rate of 8.5 percent from the date on which the 
147.30  contributions would have been made if made contemporaneous with 
147.31  the service period to the date on which the payment is actually 
147.32  made. 
147.33     Subd. 6.  [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a) 
147.34  As part of the regular data reporting provided to the consulting 
147.35  actuary retained by the legislative commission on pensions and 
147.36  retirement annually, the chief administrative officer of each 
148.1   public pension plan that has accepted a prior service credit 
148.2   purchase payment under this section shall report for any 
148.3   purchase, the purchaser, the purchaser's employer, the age of 
148.4   the purchaser, the period of the purchase, the purchaser's 
148.5   prepurchase accrued service credit, the purchaser's postpurchase 
148.6   accrued service credit, the purchaser's prior service credit 
148.7   payment, the prior service credit payment made by the 
148.8   purchaser's employer, and the amount of the additional benefit 
148.9   or annuity purchased. 
148.10     (b) As a supplemental report to the regular annual 
148.11  actuarial valuation for the applicable public pension plan 
148.12  prepared by the consulting actuary retained by the legislative 
148.13  commission on pensions and retirement, there must be the actuary 
148.14  shall provide a comparison for each purchase showing the total 
148.15  prior service credit payment received from all sources and the 
148.16  increased public pension plan actuarial accrued liability 
148.17  resulting from each purchase. 
148.18     Subd. 7.  [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 
148.19  PROCEDURE.] (a) This section expires and is repealed on July 1, 
148.20  2003. 
148.21     (b) Authority for any public pension plan to accept a prior 
148.22  service credit payment that is calculated in a timely fashion 
148.23  under this section expires on October 1, 2003. 
148.24     Sec. 41.  Minnesota Statutes 2000, section 356.551, is 
148.25  amended to read: 
148.26     356.551 [POST JULY 1, 2001 2003, PRIOR SERVICE CREDIT 
148.27  PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.] 
148.28     (a) Subdivision 1.  [APPLICATION.] Unless the prior service 
148.29  credit purchase authorization special law or general statute 
148.30  provision explicitly specifies a different purchase payment 
148.31  amount determination procedure, and if section 356.55 has 
148.32  expired, this section governs the determination of the prior 
148.33  service credit purchase payment amount of any prior service 
148.34  credit purchase. 
148.35     (b) Subd. 2.  [DETERMINATION.] The prior service credit 
148.36  purchase amount is an amount equal to the actuarial present 
149.1   value, on the date of payment, as calculated by the chief 
149.2   administrative officer of the pension plan and reviewed by the 
149.3   actuary retained by the legislative commission on pensions and 
149.4   retirement, of the amount of the additional retirement annuity 
149.5   obtained by the acquisition of the additional service credit in 
149.6   this section.  Calculation of this amount must be made using the 
149.7   preretirement interest rate applicable to the public pension 
149.8   plan specified in section 356.215, subdivision 4d 8, and the 
149.9   mortality table adopted for the public pension plan.  The 
149.10  calculation must assume continuous future service in the public 
149.11  pension plan until, and retirement at, the age at which the 
149.12  minimum requirements of the fund for normal retirement or 
149.13  retirement with an annuity unreduced for retirement at an early 
149.14  age, including section 356.30, are met with the additional 
149.15  service credit purchased.  The calculation must also assume a 
149.16  full-time equivalent salary, or actual salary, whichever is 
149.17  greater, and a future salary history that includes annual salary 
149.18  increases at the applicable salary increase rate for the plan 
149.19  specified in section 356.215, subdivision 4d 8.  Payment must be 
149.20  made in one lump sum within one year of the prior service credit 
149.21  authorization.  Payment of the amount calculated under this 
149.22  section must be made by the applicable eligible person.  
149.23  However, the current employer or the prior employer may, at its 
149.24  discretion, pay all or any portion of the payment amount that 
149.25  exceeds an amount equal to the employee contribution rates in 
149.26  effect during the period or periods of prior service applied to 
149.27  the actual salary rates in effect during the period or periods 
149.28  of prior service, plus interest at the rate of 8.5 percent a 
149.29  year compounded annually from the date on which the 
149.30  contributions would otherwise have been made to the date on 
149.31  which the payment is made.  If the employer agrees to payments 
149.32  under this paragraph subdivision, the purchaser must make the 
149.33  employee payments required under this paragraph subdivision 
149.34  within 290 days of the prior service credit authorization.  If 
149.35  that employee payment is made, the employer payment under 
149.36  this paragraph subdivision must be remitted to the chief 
150.1   administrative officer of the public pension plan within 60 days 
150.2   of receipt by the chief administrative officer of the employee 
150.3   payments specified under this paragraph subdivision. 
150.4      (c) Subd. 3.  [DOCUMENTATION.] The prospective purchaser 
150.5   must provide any relevant documentation required by the chief 
150.6   administrative officer of the public pension plan to determine 
150.7   eligibility for the prior service credit under this section. 
150.8      (d) Subd. 4.  [PAYMENT PRECONDITION FOR CREDIT GRANT.] 
150.9   Service credit for the purchase period must be granted by the 
150.10  public pension plan to the purchaser upon receipt of the 
150.11  purchase payment amount specified in paragraph (b) subdivision 2.
150.12     Sec. 42.  Minnesota Statutes 2001 Supplement, section 
150.13  356.555, is amended to read: 
150.14     356.555 [PARENTAL OR FAMILY LEAVE SERVICE CREDIT PURCHASE.] 
150.15     Subdivision 1.  [SERVICE CREDIT PURCHASE AUTHORIZATION.] 
150.16  (a) Notwithstanding any provision to the contrary of the laws 
150.17  governing a covered pension plan enumerated in subdivision 4, a 
150.18  member of the pension plan who has at least three years of 
150.19  allowable service covered by the applicable pension plan and who 
150.20  was granted by the employer a parental leave of absence as 
150.21  defined in paragraph (b), or who was granted by the employer a 
150.22  family leave of absence as defined in paragraph (c), or who had 
150.23  a parental or family-related break in employment, as defined in 
150.24  paragraph (d), for which the person did not previously receive 
150.25  service credit or for which the person did not receive or 
150.26  purchase service credit from another defined benefit public 
150.27  employee pension plan, is entitled to purchase the actual period 
150.28  of the leave or of the break in service, up to five years, of 
150.29  allowable service credit in the applicable retirement plan.  The 
150.30  purchase payment amount is governed by section 356.55. 
150.31     (b) For purposes of this section, a parental leave of 
150.32  absence is a temporary period of interruption of or separation 
150.33  from active employment for the purposes of handling maternity or 
150.34  paternity duties that has been approved by the employing unit 
150.35  and that includes the right of reinstatement to employment. 
150.36     (c) For purposes of this section, a family leave of absence 
151.1   is a family leave under United States Code, title 42, section 
151.2   12631, as amended. 
151.3      (d) For purposes of this section, a parental or 
151.4   family-related break in employment is a period following a 
151.5   termination of active employment primarily for the purpose of 
151.6   the birth of a child, the adoption of a child, or the provision 
151.7   of care to a near relative or in-law, after which the person 
151.8   returned to the prior employing unit or to an employing unit 
151.9   covered by the same pension plan that provided retirement 
151.10  coverage immediately prior to the termination of employment. 
151.11     Subd. 2.  [APPLICATION AND DOCUMENTATION.] (a) A person who 
151.12  desires to purchase service credit under subdivision 1 must 
151.13  apply for the service credit purchase with the chief 
151.14  administrative officer of the enumerated pension plan.  
151.15     (b) The application must include all necessary 
151.16  documentation of the qualifications of the person to make the 
151.17  purchase, signed written permission to allow the chief 
151.18  administrative officer to request and receive necessary 
151.19  verification of all applicable facts and eligibility 
151.20  requirements, and any other relevant information that the chief 
151.21  administrative officer may require. 
151.22     Subd. 3.  [SERVICE CREDIT GRANT.] Allowable and formula 
151.23  service credit in the applicable enumerated pension plan for the 
151.24  purchase period must be granted to the purchaser upon receipt of 
151.25  the purchase payment amount calculated under section 356.55.  
151.26  Payment of the purchase amount must be made before the person 
151.27  retires. 
151.28     Subd. 4.  [COVERED PENSION PLANS.] This section applies to 
151.29  the following pension plans: 
151.30     (1) the general state employees retirement plan governed by 
151.31  chapter 352; 
151.32     (2) the correctional state employees retirement plan 
151.33  governed by chapter 352; 
151.34     (3) the general public employees retirement plan of the 
151.35  public employees retirement association governed by chapter 353; 
151.36     (4) the public employees police and fire plan governed by 
152.1   chapter 353; 
152.2      (5) the teachers retirement plan governed by chapter 354; 
152.3      (6) the Minneapolis teachers retirement fund association 
152.4   governed by chapter 354A; 
152.5      (7) the Saint Paul teachers retirement fund association 
152.6   governed by chapter 354A; 
152.7      (8) the Duluth teachers retirement fund association 
152.8   governed by chapter 354A; 
152.9      (9) the Minneapolis employees retirement plan governed by 
152.10  chapter 422A; 
152.11     (10) the Minneapolis police relief association governed by 
152.12  chapter 423B; and 
152.13     (11) the Minneapolis fire department relief association 
152.14  governed by sections 69.25 to 69.53 and augmented by Laws 1959, 
152.15  chapters 213, 491, and 568, and other special local legislation. 
152.16                     COVERED SALARY LIMITATION  
152.17     Sec. 43.  Minnesota Statutes 2000, section 356.611, is 
152.18  amended to read: 
152.19     356.611 [LIMITATION ON PUBLIC EMPLOYEE SALARIES FOR PENSION 
152.20  PURPOSES.] 
152.21     Subdivision 1.  [STATE SALARY LIMITATIONS.] (a) 
152.22  Notwithstanding any provision of law, bylaws, articles of 
152.23  incorporation, retirement and disability allowance plan 
152.24  agreements, or retirement plan contracts to the contrary, the 
152.25  covered salary for pension purposes for a plan participant of a 
152.26  covered retirement fund under enumerated in section 356.30, 
152.27  subdivision 3, may not exceed 95 percent of the salary 
152.28  established for the governor under section 15A.082 at the time 
152.29  the person received the salary. 
152.30     (b) This section does not apply to a salary paid: 
152.31     (1) to the governor; 
152.32     (2) to an employee of a political subdivision in a position 
152.33  that is excluded from the limit as specified under section 
152.34  43A.17, subdivision 9; or 
152.35     (3) to a state employee in a position for which the 
152.36  commissioner of employee relations has approved a salary rate 
153.1   that exceeds 95 percent of the governor's salary. 
153.2      (c) The limited covered salary determined under this 
153.3   section must be used in determining employee and employer 
153.4   contributions and in determining retirement annuities and other 
153.5   benefits under the respective covered retirement fund and under 
153.6   this chapter. 
153.7      Subd. 2.  [FEDERAL COMPENSATION LIMITS.] For members first 
153.8   contributing to a covered pension plan covered under enumerated 
153.9   in section 356.30, subdivision 3, on or after July 1, 1995, 
153.10  compensation in excess of the limitation set forth in Internal 
153.11  Revenue Code 401(a)(17) shall may not be included for 
153.12  contribution and benefit computation purposes.  The compensation 
153.13  limit set forth in Internal Revenue Code 401(a)(17) on June 30, 
153.14  1993, shall apply applies to members first contributing before 
153.15  July 1, 1995. 
153.16                MEMBER CONTRIBUTION EMPLOYER PICK-UP  
153.17     Sec. 44.  Minnesota Statutes 2001 Supplement, section 
153.18  356.62, is amended to read: 
153.19     356.62 [PAYMENT OF EMPLOYEE CONTRIBUTION.] 
153.20     (a) For purposes of any public pension plan, as defined in 
153.21  section 365.615, paragraph (b), each employer shall pick up the 
153.22  employee contributions required pursuant to law or the pension 
153.23  plan for all salary payable after December 31, 1982.  If the 
153.24  United States Treasury department rules that pursuant to under 
153.25  section 414(h) of the Internal Revenue Code of 1986, as amended 
153.26  through December 31, 1992, that these picked up contributions 
153.27  are not includable in the employee's adjusted gross income until 
153.28  they are distributed or made available, then these picked up 
153.29  contributions shall must be treated as employer contributions in 
153.30  determining tax treatment pursuant to under the Internal Revenue 
153.31  Code of 1986, as amended through December 31, 1992, and the 
153.32  employer shall discontinue withholding federal income taxes on 
153.33  the amount of these contributions.  The employer shall pay these 
153.34  picked up contributions from the same source of funds as is used 
153.35  to pay the salary of the employee.  The employer shall pick up 
153.36  these employee contributions by a reduction in the cash salary 
154.1   of the employee. 
154.2      (b) Employee contributions that are picked up shall must be 
154.3   treated for all purposes of the public pension plan in the same 
154.4   manner and to the same extent as employee contributions that 
154.5   were made prior to the date on which the employee contributions 
154.6   pick up began.  The amount of the employee contributions that 
154.7   are picked up shall must be included in the salary upon which 
154.8   retirement coverage is credited and retirement and survivor's 
154.9   benefits are determined.  For purposes of this section, 
154.10  "employee" means any person covered by a public pension plan.  
154.11  For purposes of this section, "employee contributions" include 
154.12  any sums deducted from the employee's salary or wages or 
154.13  otherwise paid in lieu thereof, regardless of whether they are 
154.14  denominated contributions by the public pension plan. 
154.15     (c) For any calendar year in which withholding has been 
154.16  reduced pursuant to under this section, the employing unit shall 
154.17  supply each employee and the commissioner of revenue with an 
154.18  information return indicating the amount of the employer's 
154.19  picked-up contributions for the calendar year that were not 
154.20  subject to withholding.  This return shall must be provided to 
154.21  the employee not later than January 31 of the succeeding 
154.22  calendar year.  The commissioner of revenue shall prescribe the 
154.23  form of the return and the provisions of section 289A.12 shall 
154.24  apply to the extent not inconsistent with the provisions of this 
154.25  section. 
154.26                    PENSION ASSET AND INVESTMENT  
154.27                            LIMITATIONS  
154.28     Sec. 45.  [356.63] [LIMITATION ON USE OF PUBLIC PENSION 
154.29  PLAN ASSETS.] 
154.30     (a) Money held by or credited to a public pension plan as 
154.31  assets, including employer and employee contributions, state 
154.32  aid, appropriations from the state or a governmental 
154.33  subdivision, and accrued earnings on investments, constitutes a 
154.34  dedicated fund.  The dedicated fund may be used exclusively to 
154.35  pay retirement annuities, service pensions, disability benefits, 
154.36  survivor benefits, refunds of contributions, or other benefits 
155.1   provided under the benefit plan document or documents governing 
155.2   the public pension plan, and to pay reasonable administrative 
155.3   expenses approved by the governing board of the public pension 
155.4   plan or by another appropriate authority.  No assets of a public 
155.5   pension plan may be loaned or transferred to the state or a 
155.6   governmental subdivision or be used to amortize an unfunded 
155.7   actuarial accrued liability in another public pension plan or 
155.8   fund, whether or not the plan providing the assets consolidates 
155.9   or has consolidated with the plan receiving the assets.  Nothing 
155.10  in this section prohibits a public pension plan or the state 
155.11  board of investment from investing the assets of a plan as 
155.12  authorized by law, including the investment of the assets of 
155.13  public pension plans by the state board of investment in a 
155.14  commingled investment fund. 
155.15     (b) A public pension plan for purposes of this section 
155.16  means a pension plan or fund specified in section 356.20, 
155.17  subdivision 2, or 356.30, subdivision 3, or a retirement or 
155.18  pension plan or fund, including a supplemental retirement plan 
155.19  or fund, established, maintained, or supported by a governmental 
155.20  subdivision or public body whose revenues are derived from 
155.21  taxation, fees, assessments, or other public sources. 
155.22     Sec. 46.  [356.64] [REAL ESTATE INVESTMENTS.] 
155.23     (a) Notwithstanding any law to the contrary, any public 
155.24  pension plan whose assets are not invested by the state board of 
155.25  investment may invest its funds in Minnesota situs nonfarm real 
155.26  estate ownership interests or loans secured by mortgages or 
155.27  deeds of trust if the investment is consistent with section 
155.28  356A.04. 
155.29     (b) Except to the extent authorized in the case of the 
155.30  Minneapolis employees retirement fund under section 422A.05, 
155.31  subdivision 2c, paragraph (a), an investment otherwise 
155.32  authorized by this section must also comply with the 
155.33  requirements and limitations of section 11A.24, subdivision 6. 
155.34                   ABANDONED PENSION FUND AMOUNTS  
155.35     Sec. 47.  Minnesota Statutes 2001 Supplement, section 
155.36  356.65, subdivision 1, is amended to read: 
156.1      Subdivision 1.  [DEFINITIONS.] For purposes of this 
156.2   section, unless the context clearly indicates otherwise, each of 
156.3   the following terms shall have has the meanings meaning given to 
156.4   them it:  
156.5      (a) "Public pension fund" means any public pension plan as 
156.6   defined in section 356.615, paragraph (b), and any Minnesota 
156.7   volunteer firefighters relief association which is established 
156.8   pursuant to under chapter 424A and governed pursuant to under 
156.9   sections 69.771 to 69.776. 
156.10     (b) "Unclaimed public pension fund amounts" means any 
156.11  amounts representing accumulated member contributions, any 
156.12  outstanding unpaid annuity, service pension or other retirement 
156.13  benefit payments, including those made on warrants issued by the 
156.14  commissioner of finance, which have been issued and delivered 
156.15  for more than six months prior to the date of the end of the 
156.16  fiscal year applicable to the public pension fund, and any 
156.17  applicable interest to the credit of:  
156.18     (1) an inactive or former member of a public pension fund 
156.19  who is not entitled to a defined retirement annuity and who has 
156.20  not applied for a refund of those amounts within five years 
156.21  after the last member contribution was made; or 
156.22     (2) a deceased inactive or former member of a public 
156.23  pension fund if no survivor is entitled to a survivor benefit 
156.24  and no survivor, designated beneficiary or legal representative 
156.25  of the estate has applied for a refund of those amounts within 
156.26  five years after the date of death of the inactive or former 
156.27  member. 
156.28     Sec. 48.  Minnesota Statutes 2000, section 356.65, 
156.29  subdivision 2, is amended to read: 
156.30     Subd. 2.  [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed 
156.31  public pension fund amounts existing in any public pension 
156.32  fund shall be are presumed to be abandoned, but shall are not 
156.33  be subject to the provisions of sections 345.31 to 345.60.  
156.34  Unless the benefit plan of the public pension fund specifically 
156.35  provides for a different disposition of unclaimed or abandoned 
156.36  funds or amounts, any unclaimed public pension fund 
157.1   amounts shall cancel and shall must be credited to the public 
157.2   pension fund.  If the unclaimed public pension fund amount 
157.3   exceeds $25 and the inactive or former member again becomes a 
157.4   member of the applicable public pension fund plan or applies for 
157.5   a retirement annuity pursuant to under section 3A.12, 352.72, 
157.6   352B.30, 352C.051, 353.71, 354.60, 356.30, or 422A.16, 
157.7   subdivision 8, whichever is applicable, applies, the canceled 
157.8   amount shall must be restored to the credit of the person.  
157.9                     HEALTH INSURANCE WITHHOLDING
157.10     Sec. 49.  Minnesota Statutes 2000, section 356.87, is 
157.11  amended to read: 
157.12     356.87 [HEALTH INSURANCE WITHHOLDING.] 
157.13     (a) Upon authorization of a person entitled to receive a 
157.14  retirement annuity, disability benefit or survivor benefit, the 
157.15  executive director of a public pension fund listed enumerated in 
157.16  section 356.20, subdivision 2, shall withhold health insurance 
157.17  premium amounts from the retirement annuity, disability benefit 
157.18  or survivor benefit, and shall pay the premium amounts to the 
157.19  public employees insurance program.  
157.20     (b) The public employees insurance program shall reimburse 
157.21  a public pension fund for the administrative expense of 
157.22  withholding the premium amounts and shall assume liability for 
157.23  the failure of a public pension fund to properly withhold the 
157.24  premium amounts. 
157.25                          RETIREMENT PLAN 
157.26                           ADMINISTRATION
157.27     Sec. 50.  [356B.05] [PUBLIC PENSION ADMINISTRATION 
157.28  LEGISLATION.] 
157.29     (a) Proposed administrative legislation recommended by or 
157.30  on behalf of the Minnesota state retirement system, the public 
157.31  employees retirement association, the teachers retirement 
157.32  association, the Minneapolis employees retirement fund, or a 
157.33  first class city teachers retirement fund association must be 
157.34  presented to the legislative commission on pensions and 
157.35  retirement, the state and local government operations committee 
157.36  of the senate, and the governmental operations and veterans 
158.1   affairs policy committee of the house of representatives on or 
158.2   before October 1 of each year in order for the proposed 
158.3   administrative legislation to be acted upon during the upcoming 
158.4   legislative session.  The executive director or the deputy 
158.5   executive director of the legislative commission on pensions and 
158.6   retirement shall provide written comments on the proposed 
158.7   provisions to the public pension plans by November 15 of each 
158.8   year. 
158.9      (b) Proposed administrative legislation recommended by or 
158.10  on behalf of a public employee pension plan or system under 
158.11  paragraph (a) must address provisions: 
158.12     (1) authorizing allowable service credit for leaves of 
158.13  absence and related circumstances; 
158.14     (2) governing offsets or deductions from the amount of 
158.15  disability benefits; 
158.16     (3) authorizing the purchase of allowable service credit 
158.17  for prior uncredited periods; 
158.18     (4) governing subsequent employment earnings by reemployed 
158.19  annuitants; and 
158.20     (5) authorizing retroactive effect for retirement annuity 
158.21  or benefit applications. 
158.22     (c) Where possible and desirable, taking into account the 
158.23  differences among the public pension plans in existing law and 
158.24  the unique characteristics of the individual public pension fund 
158.25  memberships, uniform provisions relating to paragraph (b) for 
158.26  all applicable public pension plans must be presented for 
158.27  consideration during the legislative session.  Supporting 
158.28  documentation setting forth the policy rationale for each set of 
158.29  uniform provisions must accompany the proposed administrative 
158.30  legislation. 
158.31     Sec. 51.  [356B.10] [PUBLIC PENSION FACILITIES.] 
158.32     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
158.33  subdivision apply to this section. 
158.34     (b) "Boards" mean the board of directors of the Minnesota 
158.35  state retirement system, the board of trustees of the public 
158.36  employees retirement association, and the board of trustees of 
159.1   the teachers retirement association. 
159.2      (c) "Commissioner" means the commissioner of administration.
159.3      Subd. 2.  [BUILDING; RELATED FACILITIES.] (a) The 
159.4   commissioner of administration may provide a building and 
159.5   related facilities to be jointly occupied by the board of 
159.6   directors of the Minnesota state retirement system, the board of 
159.7   trustees of the public employees retirement association, and the 
159.8   board of trustees of the teachers retirement association for the 
159.9   administration of their public pension systems.  
159.10     (b) Design of the facilities is not subject to section 
159.11  16B.33.  The competitive acquisition process set forth in 
159.12  chapter 16C does not apply if the process set forth in 
159.13  subdivision 3 is followed.  
159.14     (c) The boards and the commissioner must submit the plans 
159.15  for a public pension facility under this section to the chair of 
159.16  the house ways and means committee and to the chair of the 
159.17  senate state government finance committee for their approval 
159.18  before the plans are implemented.  
159.19     Subd. 3.  [CONTRACTING PROCEDURES.] (a) The commissioner 
159.20  may enter into a contract for facilities with a contractor to 
159.21  furnish the architectural, engineering, and related services as 
159.22  well as the labor, materials, supplies, equipment, and related 
159.23  construction services on the basis of a request for 
159.24  qualifications and competitive responses received through a 
159.25  request for proposals process that must include the items listed 
159.26  in paragraphs (b) to (i). 
159.27     (b) Before issuing a request for qualifications and a 
159.28  request for proposals, the commissioner, with the assistance of 
159.29  the boards, shall prepare performance criteria and 
159.30  specifications that include: 
159.31     (1) a general floor plan or layout indicating the general 
159.32  dimensions of the public building and space requirements; 
159.33     (2) design criteria for the exterior and site area; 
159.34     (3) performance specifications for all building systems and 
159.35  components to ensure quality and cost efficiencies; 
159.36     (4) conceptual floor plans for systems space; 
160.1      (5) preferred types of interior finishes, styles of 
160.2   windows, lighting and outlets, doors, and features such as 
160.3   built-in counters and telephone wiring; 
160.4      (6) mechanical and electrical requirements; 
160.5      (7) special interior features required; and 
160.6      (8) a completion schedule. 
160.7      (c) The commissioner shall first solicit statements of 
160.8   qualifications from eligible contractors and select more than 
160.9   one qualified contractor based upon experience, technical 
160.10  competence, past performance, capability to perform, and other 
160.11  appropriate facts.  Contractors selected under this process must 
160.12  be, employ, or have as a partner, member, coventurer, or 
160.13  subcontractor, persons licensed and registered under chapter 326 
160.14  to provide the services required to design and complete the 
160.15  project.  The commissioner does not have to select any of the 
160.16  respondents if none reasonably fulfill the criteria set forth in 
160.17  this paragraph. 
160.18     (d) The contractors selected shall be asked to respond to a 
160.19  request for proposals.  Responses must include site plans, 
160.20  design concept, elevation, statement of material to be used, 
160.21  floor layouts, a detailed development budget, and a total cost 
160.22  to complete the project.  The proposal must indicate that the 
160.23  contractor obtained at least two proposals from subcontractors 
160.24  for each item of work and must set forth how the subcontractors 
160.25  were selected.  The commissioner, with the assistance of the 
160.26  boards, shall evaluate the proposals based upon design, cost, 
160.27  quality, aesthetics, and the best overall value to the state 
160.28  pension funds.  The commissioner need not select any of the 
160.29  proposals submitted and reserves the right to reject any and all 
160.30  proposals, and may terminate the process or revise the request 
160.31  for proposals and solicit new proposals if the commissioner 
160.32  determines that the best interests of the pension funds would be 
160.33  better served by doing so.  Proposals submitted are nonpublic 
160.34  data until the contract is awarded. 
160.35     (e) The contractor selected must comply with sections 
160.36  574.26 to 574.261.  Before executing a final contract, the 
161.1   contractor selected shall certify a firm construction price and 
161.2   completion date. 
161.3      (f) The commissioner may consider building sites in the 
161.4   city of St. Paul and surrounding suburbs. 
161.5      (g) Any land, building, or facility leased, constructed, or 
161.6   acquired and any leasehold interest acquired under this section 
161.7   must be held by the state in trust for the three retirement 
161.8   systems as tenants in common.  Each retirement system fund must 
161.9   consider its interest as a fixed asset of its pension fund in 
161.10  accordance with governmental accounting standards. 
161.11     (h) The commissioner may lease to another governmental 
161.12  subdivision, or to a private company under contract with the 
161.13  state board of investment or with the board of directors of the 
161.14  Minnesota state retirement system, whichever applies, to provide 
161.15  deferred compensation services under section 352.96, any portion 
161.16  of the funds' building and lands that is not required for their 
161.17  direct use upon terms and conditions they deem to be in the best 
161.18  interest of the pension funds.  Any income accruing from the 
161.19  rentals must be separately accounted for and utilized to offset 
161.20  ongoing administrative expenses and any excess must be carried 
161.21  forward for future administrative expenses.  The commissioner 
161.22  may also enter into lease agreements for the establishment of 
161.23  satellite offices should the boards find them to be necessary in 
161.24  order to assure their members reasonable access to their 
161.25  services.  The commissioner may lease under section 16B.24 any 
161.26  portion of the facilities not required for the direct use of the 
161.27  boards. 
161.28     (i) The boards shall formulate and adopt a written working 
161.29  agreement that sets forth the nature of each retirement system's 
161.30  ownership interest, the duties and obligations of each system 
161.31  toward the construction, operation, and maintenance costs of its 
161.32  facilities, and identifies one retirement fund to serve as 
161.33  manager for operating and maintenance purposes.  The boards may 
161.34  contract with independent third parties for maintenance-related 
161.35  activities, services, and supplies, and may use the services of 
161.36  the department of administration where economically feasible to 
162.1   do so.  If the boards cannot agree or resolve a dispute about 
162.2   operations or maintenance of the facilities, they may request 
162.3   the commissioner of administration to appoint a representative 
162.4   from the department's real estate management division to serve 
162.5   as arbitrator of the dispute with authority to issue a written 
162.6   resolution of the dispute. 
162.7      Subd. 4.  [REVENUE BONDS.] The commissioner of finance, on 
162.8   request of the governor, may sell and issue revenue bonds in an 
162.9   aggregate principal amount up to $38,000,000 to achieve the 
162.10  purposes described in subdivisions 1 and 2, plus the amount 
162.11  needed to pay issuance costs and interest costs and to establish 
162.12  necessary reserves to secure the bonds.  The commissioner of 
162.13  finance may issue bonds for the purpose of refunding bonds 
162.14  issued under this subdivision.  The bonds may be sold and issued 
162.15  on terms and in a manner the commissioner of finance determines 
162.16  to be in the best interests of the state.  The proceeds of the 
162.17  bonds must be credited to a bond proceeds account in the pension 
162.18  building fund which the commissioner of finance must create in 
162.19  the state treasury. 
162.20     Subd. 5.  [SECURITY.] The boards may pledge any or all 
162.21  assets of the boards as security for the bonds.  The bonds and 
162.22  the interest on them must be paid solely from and secured by all 
162.23  assets of the boards pledged and appropriated for these purposes 
162.24  to the debt service fund created in subdivision 6 and any 
162.25  investment income on it and any reserve established for this 
162.26  purpose.  The bonds are not public debt, and the full faith, 
162.27  credit, and taxing powers of the state are not pledged for their 
162.28  payment.  The bonds and the interest on them must not be paid, 
162.29  directly or indirectly, in whole or in part, from a tax of 
162.30  statewide application on any class of property, income, 
162.31  transaction, or privilege. 
162.32     Subd. 6.  [DEBT SERVICE FUND.] There is established in the 
162.33  state treasury a separate and special pension building debt 
162.34  service fund.  Money in the funds managed by the boards is 
162.35  appropriated to the boards for transfer to the pension building 
162.36  debt service fund.  Money appropriated and transferred to the 
163.1   fund and investment income on it on hand or required to be 
163.2   transferred to the fund must be used and is irrevocably 
163.3   appropriated to pay when due the principal of and interest on 
163.4   the bonds authorized in subdivision 4.  
163.5      Subd. 7.  [COVENANTS; AGREEMENTS.] The commissioner of 
163.6   finance may, for and on behalf of the state, enter into 
163.7   covenants and agreements not inconsistent with subdivisions 1 to 
163.8   6 as may be necessary or desirable to facilitate the sale and 
163.9   issuance of the bonds on terms favorable to the state, 
163.10  including, but not limited to, covenants and agreements relating 
163.11  to the payment of and security for the bonds, tax exemption, and 
163.12  disclosure of information required by federal and state 
163.13  securities laws.  The covenants and agreements of the 
163.14  commissioner of finance constitute an enforceable contract of 
163.15  the state and the state pledges and agrees with the holders of 
163.16  any bonds that the state will not limit or alter the rights 
163.17  vested in the commissioner of finance to fulfill the terms of 
163.18  the covenants or agreements made with the holders of the bonds, 
163.19  or in any way impair the rights and remedies of the holders 
163.20  until the bonds, together with the interest on them, with 
163.21  interest on any unpaid installments of interest, and all costs 
163.22  and expenses in connection with any action or proceeding by or 
163.23  on behalf of the holders, are fully met and discharged.  The 
163.24  commissioner of finance may include this pledge and agreement of 
163.25  the state in any covenant or agreement with the holders of the 
163.26  bonds.  Sections 16A.672 and 16A.675 apply to the bonds. 
163.27     Sec. 52.  [CROSS-REFERENCE CHANGES.] 
163.28     In the next and subsequent editions of Minnesota Statutes, 
163.29  the revisor of statutes shall, in each section indicated in 
163.30  column A, replace the cross-reference specified in column B with 
163.31  the cross-reference set forth in column C: 
163.32     column A            column B             column C
163.33  3.751, subd. 1       356.89              356B.10
163.34  3A.02, subd. 1       356.215, subd. 4d   356.215, subd. 8
163.35  3A.02, subd. 4       356.215, subd. 4d   356.215, subd. 8
163.36  3A.11, subd. 1       356.215, subd. 4d   356.215, subd. 8
164.1   11A.18, subd. 6      356.215, subd. 4d   356.215, subd. 8
164.2   11A.18, subd. 9      356.215, subd. 4d   356.215, subd. 8
164.3   11A.18, subd. 11     356.215, subd. 4d   356.215, subd. 8
164.4   13.631, subd. 2      356.80              356.49
164.5   69.77, subd. 2b      356.215, subds. 4   356.215, subds. 4 to 15
164.6                          to 4k
164.7   69.77, subd. 2b      356.215, subd. 4d   356.215, subd. 8
164.8   69.773, subd. 2      356.215, subd. 4d   356.215, subd. 8
164.9   69.773, subd. 4      356.215, subd. 4d   356.215, subd. 8
164.10  352.01, subd. 12     356.215, subd. 4d   356.215, subd. 8
164.11  352.115, subd. 3     356.119, subd. 1    356.315, subd. 1
164.12  352.115, subd. 3     356.119, subd. 2    356.315, subd. 2
164.13  352.115, subd. 10    356.58              356.47
164.14  352.119, subd. 2     356.215, subd. 4d   356.215, subd. 8
164.15  352.72, subd. 2      356.215, subd. 4d   356.215, subd. 8
164.16  352.87, subd. 3      356.119, subd. 2a   356.315, subd. 2a
164.17  352.91, subd. 5      356.215, subd. 4d   356.215, subd. 8
164.18  352.93, subd. 2      356.119, subd. 5    356.315, subd. 5
164.19  352.95, subd. 1      356.119, subd. 5    356.315, subd. 5
164.20  352B.08, subd. 2     356.119, subd. 6    356.315, subd. 6
164.21  352B.08, subd. 3     356.215, subd. 4d   356.215, subd. 8
164.22  352B.10, subd. 1     356.119, subd. 6    356.315, subd. 6
164.23  352B.26, subd. 3     356.215, subd. 4d   356.215, subd. 8
164.24  352B.30, subd. 4     356.215, subd. 4d   356.215, subd. 8
164.25  352C.031, subd. 4    356.215, subd. 4d   356.215, subd. 8
164.26  352C.033             356.215, subd. 4d   356.215, subd. 8
164.27  353.01, subd. 14     356.215, subd. 4d   356.215, subd. 8
164.28  353.03, subd. 3      356.215, subd. 4,   356.215, subd. 8
164.29                         clause (4)
164.30  353.271, subd. 2     356.215, subd. 4d   356.215, subd. 8
164.31  353.29, subd. 3      356.119, subd. 3    356.315, subd. 3
164.32  353.29, subd. 3      356.119, subd. 4    356.315, subd. 4
164.33  353.29, subd. 3      356.119, subd. 1    356.315, subd. 1
164.34  353.29, subd. 3      356.119, subd. 2    356.315, subd. 2
164.35  353.29, subd. 4      356.371, subd. 3    356.46, subd. 3
164.36  353.37, subd. 3a     356.58              356.47
165.1   353.651, subd. 3     356.119, subd. 6    356.315, subd. 6
165.2   353.656, subd. 1     356.119, subd. 6    356.315, subd. 6
165.3   353.665, subd. 8     356.215, subd. 4d   356.215, subd. 8
165.4   353.71, subd. 2      356.215, subd. 4d   356.215, subd. 8
165.5   353A.08, subd. 1     356.215, subd. 4d   356.215, subd. 8
165.6   353A.08, subd. 2     356.215, subd. 4d   356.215, subd. 8
165.7   353A.09, subd. 2     356.215, subd. 4d   356.215, subd. 8
165.8   353A.09, subd. 5     356.215, subd. 4d   356.215, subd. 8
165.9   353E.04, subd. 3     356.119, subd. 5a   356.315, subd. 5a
165.10  353E.06, subd. 1     356.119, subd. 5a   356.315, subd. 5a
165.11  354.05, subd. 7      356.215, subd. 4d   356.215, subd. 8
165.12  354.07, subd. 1      356.215, subd. 4d   356.215, subd. 8
165.13  354.44, subd. 2      356.215, subd. 4d   356.215, subd. 8
165.14  354.44, subd. 5      356.58              356.47
165.15  354.44, subd. 6      356.119, subd. 1    356.315, subd. 1
165.16  354.44, subd. 6      356.119, subd. 2    356.315, subd. 2
165.17  354.44, subd. 6      356.119, subd. 3    356.315, subd. 3
165.18  354.44               356.119             356.315
165.19  354.45, subd. 2      356.215, subd. 4d   356.215, subd. 8
165.20  354.48, subd. 3      356.215, subd. 4d   356.215, subd. 8
165.21  354.55, subd. 11     356.215, subd. 4d   356.215, subd. 8
165.22  354.63, subd. 2      356.215, subd. 4d   356.215, subd. 8
165.23  354A.011, subd. 3    356.215, subd. 4d   356.215, subd. 8
165.24  354A.026             356.215, subd. 4g   356.215, subd. 11
165.25  354A.105             356.215, subd. 4d   356.215, subd. 8
165.26  354A.12, subd. 1a    356.215, subd. 4d   356.215, subd. 8
165.27  354A.31, subd. 1a    356.371, subd. 3    356.46, subd. 3
165.28  354A.31, subd. 3     356.58              356.47
165.29  354A.31, subd. 4     356.119, subd. 1    356.315, subd. 1
165.30  354A.31, subd. 4     356.119, subd. 2    356.315, subd. 2
165.31  354A.31, subd. 4a    356.119, subd. 1    356.315, subd. 1
165.32  354A.31, subd. 4a    356.119, subd. 2    356.315, subd. 2
165.33  354A.34              356.215, subd. 4d   356.215, subd. 8
165.34  422A.01, subd. 6     356.215, subd. 4d   356.215, subd. 8
165.35  422A.06, subd. 5     356.215, subd. 4d   356.215, subd. 8
165.36  422A.08, subd. 5a    356.215, subd. 4d   356.215, subd. 8
166.1   422A.101, subd. 3    356.865             356.43
166.2   422A.15, subd. 2     356.215, subd. 4d   356.215, subd. 8
166.3   422A.15, subd. 3     356.215, subd. 4d   356.215, subd. 8
166.4   422A.16, subd. 2     356.215, subd. 4d   356.215, subd. 8
166.5   422A.17              356.215, subd. 4d   356.215, subd. 8
166.6   422A.23, subd. 12    356.215, subd. 4d   356.215, subd. 8
166.7   423A.02, subd. 1     356.215, subd. 4,   356.215, subd. 8
166.8                          clause (4)
166.9   490.121, subd. 20    356.215, subd. 4d   356.215, subd. 8
166.10  490.121, subd. 22    356.119, subd. 7    356.315, subd. 7
166.11  490.124, subd. 1     356.119, subd. 7    356.315, subd. 7
166.12  490.124, subd. 1     356.119, subd. 8    356.315, subd. 8
166.13  490.124, subd. 5     356.215, subd. 4d   356.215, subd. 8
166.14     Sec. 53.  [REPEALER.] 
166.15     Subdivision 1.  [REPEALER OF OBSOLETE 
166.16  PROVISIONS.] Minnesota Statutes 2000, sections 356.325; 356.35; 
166.17  356.36; 356.37; 356.38; 356.39; 356.45; 356.451; 356.452; 
166.18  356.453; 356.454; and 356.455, are repealed.  
166.19     Subd. 2.  [REPEALER OF PROVISIONS REORGANIZED.] (a) 
166.20  Minnesota Statutes 2000, sections 356.19; 356.305; 356.306; 
166.21  356.31; 356.371, subdivisions 2 and 3; 356.372; 356.615; 356.71; 
166.22  356.80; 356.81; 356.86; 356.865; 356.88; and 356.89, are 
166.23  repealed. 
166.24     (b) Minnesota Statutes 2001 Supplement, sections 356.371, 
166.25  subdivision 1; and 356.866, are repealed. 
166.26     Subd. 3.  [REPEALER TO RESOLVE REVISOR NOTE.] Laws 1997, 
166.27  chapter 233, article 1, section 58, is repealed. 
166.28     Sec. 54.  [EFFECTIVE DATE.] 
166.29     Sections 1 to 53 are effective July 1, 2002. 
166.30                             ARTICLE 11 
166.31                       JOINT RETIREMENT PLAN
166.32                      BUILDING LEASE AUTHORITY
166.33     Section 1.  Minnesota Statutes 2000, section 356.89, 
166.34  subdivision 3, is amended to read: 
166.35     Subd. 3.  [CONTRACTING PROCEDURES.] (a) The commissioner 
166.36  may enter into a contract for facilities with a contractor to 
167.1   furnish the architectural, engineering, and related services as 
167.2   well as the labor, materials, supplies, equipment, and related 
167.3   construction services on the basis of a request for 
167.4   qualifications and competitive responses received through a 
167.5   request for proposals process that must include the items listed 
167.6   in paragraphs (b) to (i). 
167.7      (b) Before issuing a request for qualifications and a 
167.8   request for proposals, the commissioner, with the assistance of 
167.9   the boards, shall prepare performance criteria and 
167.10  specifications that include: 
167.11     (1) a general floor plan or layout indicating the general 
167.12  dimensions of the public building and space requirements; 
167.13     (2) design criteria for the exterior and site area; 
167.14     (3) performance specifications for all building systems and 
167.15  components to ensure quality and cost efficiencies; 
167.16     (4) conceptual floor plans for systems space; 
167.17     (5) preferred types of interior finishes, styles of 
167.18  windows, lighting and outlets, doors, and features such as 
167.19  built-in counters and telephone wiring; 
167.20     (6) mechanical and electrical requirements; 
167.21     (7) special interior features required; and 
167.22     (8) a completion schedule. 
167.23     (c) The commissioner shall first solicit statements of 
167.24  qualifications from eligible contractors and select more than 
167.25  one qualified contractor based upon experience, technical 
167.26  competence, past performance, capability to perform, and other 
167.27  appropriate facts.  Contractors selected under this process must 
167.28  be, employ, or have as a partner, member, coventurer, or 
167.29  subcontractor, persons licensed and registered under chapter 326 
167.30  to provide the services required to design and complete the 
167.31  project.  The commissioner does not have to select any of the 
167.32  respondents if none reasonably fulfill the criteria set forth in 
167.33  this paragraph. 
167.34     (d) The contractors selected shall be asked to respond to a 
167.35  request for proposals.  Responses must include site plans, 
167.36  design concept, elevation, statement of material to be used, 
168.1   floor layouts, a detailed development budget, and a total cost 
168.2   to complete the project.  The proposal must indicate that the 
168.3   contractor obtained at least two proposals from subcontractors 
168.4   for each item of work and must set forth how the subcontractors 
168.5   were selected.  The commissioner, with the assistance of the 
168.6   boards, shall evaluate the proposals based upon design, cost, 
168.7   quality, aesthetics, and the best overall value to the state 
168.8   pension funds.  The commissioner need not select any of the 
168.9   proposals submitted and reserves the right to reject any and all 
168.10  proposals, and may terminate the process or revise the request 
168.11  for proposals and solicit new proposals if the commissioner 
168.12  determines that the best interests of the pension funds would be 
168.13  better served by doing so.  Proposals submitted are nonpublic 
168.14  data until the contract is awarded. 
168.15     (e) The contractor selected must comply with sections 
168.16  574.26 to 574.261.  Before executing a final contract, the 
168.17  contractor selected shall certify a firm construction price and 
168.18  completion date. 
168.19     (f) The commissioner may consider building sites in the 
168.20  city of St. Paul and surrounding suburbs. 
168.21     (g) Any land, building, or facility leased, constructed, or 
168.22  acquired and any leasehold interest acquired under this section 
168.23  must be held by the state in trust for the three retirement 
168.24  systems as tenants in common.  Each retirement system fund must 
168.25  consider its interest as a fixed asset of its pension fund in 
168.26  accordance with governmental accounting standards. 
168.27     (h) The commissioner may lease to another governmental 
168.28  subdivision, or to a private company under contract with the 
168.29  state board of investment or with the board of directors of the 
168.30  Minnesota state retirement system, whichever applies, to provide 
168.31  deferred compensation services under section 352.96, any portion 
168.32  of the funds' building and lands that is not required for their 
168.33  direct use upon terms and conditions they deem to be in the best 
168.34  interest of the pension funds.  Any income accruing from the 
168.35  rentals must be separately accounted for and utilized to offset 
168.36  ongoing administrative expenses and any excess must be carried 
169.1   forward for future administrative expenses.  The commissioner 
169.2   may also enter into lease agreements for the establishment of 
169.3   satellite offices should the boards find them to be necessary in 
169.4   order to assure their members reasonable access to their 
169.5   services.  The commissioner may lease under section 16B.24 any 
169.6   portion of the facilities not required for the direct use of the 
169.7   boards. 
169.8      (i) The boards shall formulate and adopt a written working 
169.9   agreement that sets forth the nature of each retirement system's 
169.10  ownership interest, the duties and obligations of each system 
169.11  toward the construction, operation, and maintenance costs of its 
169.12  facilities, and identifies one retirement fund to serve as 
169.13  manager for operating and maintenance purposes.  The boards may 
169.14  contract with independent third parties for maintenance-related 
169.15  activities, services, and supplies, and may use the services of 
169.16  the department of administration where economically feasible to 
169.17  do so.  If the boards cannot agree or resolve a dispute about 
169.18  operations or maintenance of the facilities, they may request 
169.19  the commissioner of administration to appoint a representative 
169.20  from the department's real estate management division to serve 
169.21  as arbitrator of the dispute with authority to issue a written 
169.22  resolution of the dispute. 
169.23     Sec. 2.  [EFFECTIVE DATE.] 
169.24     Section 1 is effective July 1, 2002. 
169.25                             ARTICLE 12 
169.26                    VOLUNTEER FIREFIGHTER RELIEF
169.27              ASSOCIATIONS SERVICE PENSION ELIGIBILITY
169.28     Section 1.  Minnesota Statutes 2000, section 424A.02, 
169.29  subdivision 1, is amended to read: 
169.30     Subdivision 1.  [AUTHORIZATION.] (a) A relief association, 
169.31  when its articles of incorporation or bylaws so provide, may pay 
169.32  out of the assets of its special fund a service pension to each 
169.33  of its members who:  (1) separates from active service with the 
169.34  fire department; (2) reaches age 50; (3) completes at least five 
169.35  years of active service as an active member of the municipal 
169.36  fire department to which the relief association is associated; 
170.1   (4) completes at least five years of active membership with the 
170.2   relief association before separation from active service; and 
170.3   (5) complies with any additional conditions as to age, service, 
170.4   and membership that are prescribed by the bylaws of the relief 
170.5   association.  A service pension computed under this section may 
170.6   be prorated monthly for fractional years of service, if the 
170.7   bylaws or articles of incorporation of the relief association so 
170.8   provide.  The service pension may be paid whether or not the 
170.9   municipality or nonprofit firefighting corporation to which the 
170.10  relief association is associated qualifies for fire state aid 
170.11  under chapter 69.  
170.12     (b) In the case of a member who has completed at least five 
170.13  years of active service as an active member of the fire 
170.14  department to which the relief association is associated on the 
170.15  date that the relief association is established and 
170.16  incorporated, the requirement that the member complete at least 
170.17  five years of active membership with the relief association 
170.18  before separation from active service may be waived by the board 
170.19  of trustees of the relief association if the member completes at 
170.20  least five years of inactive membership with the relief 
170.21  association before the payment of the service pension.  During 
170.22  the period of inactive membership, the member is not entitled to 
170.23  receive disability benefit coverage, is not entitled to receive 
170.24  additional service credit towards computation of a service 
170.25  pension, and is considered to have the status of a person 
170.26  entitled to a deferred service pension under subdivision 7. 
170.27     (c) No municipality or nonprofit firefighting corporation 
170.28  may delegate the power to take final action in setting a service 
170.29  pension or ancillary benefit amount or level to the board of 
170.30  trustees of the relief association or to approve in advance a 
170.31  service pension or ancillary benefit amount or level equal to 
170.32  the maximum amount or level that this chapter would allow rather 
170.33  than a specific dollar amount or level.  
170.34     (d) No relief association as defined in section 424A.001, 
170.35  subdivision 4, may pay a service pension or disability benefit 
170.36  to a former member of the relief association if that person has 
171.1   not separated from active service with the fire department to 
171.2   which the relief association is directly associated, unless: 
171.3      (1) the person is employed subsequent to retirement by the 
171.4   municipality or independent nonprofit firefighting corporation, 
171.5   whichever applies, to perform duties within the municipal fire 
171.6   department or corporation on a full-time basis; 
171.7      (2) the governing body of the municipality or of the 
171.8   corporation has filed its determination with the board of 
171.9   trustees of the relief association that the person's experience 
171.10  with and service to the fire department in that person's 
171.11  full-time capacity would be difficult to replace; and 
171.12     (3) the bylaws of the relief association were amended to 
171.13  provide for the payment of a service pension or disability 
171.14  benefit for such full-time employees. 
171.15                             ARTICLE 13 
171.16                    STUDY OF STATEWIDE VOLUNTEER 
171.17                     FIREFIGHTER RETIREMENT PLAN 
171.18     Section 1.  [STUDY OF STATEWIDE LUMP SUM VOLUNTEER 
171.19  FIREFIGHTER RETIREMENT PLAN; CREATION OF TASK FORCE.] 
171.20     Subdivision 1.  [TASK FORCE MEMBERSHIP.] (a) A statewide 
171.21  lump sum volunteer firefighter retirement plan study task force 
171.22  is created. 
171.23     (b) The task force members are: 
171.24     (1) four members appointed by the president of the 
171.25  Minnesota area relief association coalition; 
171.26     (2) four members appointed by the president of the 
171.27  Minnesota state fire department association; 
171.28     (3) four members appointed by the president of the 
171.29  Minnesota state fire chiefs association; 
171.30     (4) four members appointed by the board of directors of the 
171.31  league of Minnesota cities; and 
171.32     (5) the Minnesota state auditor or the auditor's designee. 
171.33     (c) Appointments must be made on or before July 1, 2002.  
171.34  If the appointment is not made in a timely way, or if there is a 
171.35  vacancy, the Minnesota state auditor shall appoint the task 
171.36  force member or the replacement member. 
172.1      (d) The chair of the task force must be elected by the 
172.2   members of the task force. 
172.3      (e) Staffing services for the task force must be provided 
172.4   by the office of the state auditor. 
172.5      Subd. 2.  [TASK FORCE DUTIES.] (a) The task force shall 
172.6   conduct fact finding regarding the creation of a voluntary 
172.7   statewide firefighter retirement plan. 
172.8      (b) To determine the design and components of the potential 
172.9   statewide plan, the task force shall contract with the 
172.10  management analysis division of the department of administration 
172.11  to conduct a statewide survey of current volunteer firefighter 
172.12  relief associations on the topic and shall conduct a series of 
172.13  public meetings throughout the state in which feedback from 
172.14  volunteer firefighter relief association members would be 
172.15  obtained. 
172.16     (c) The task force shall determine the benefit level or 
172.17  levels of a potential statewide volunteer firefighter retirement 
172.18  plan, the funding requirements for the plan, the investment 
172.19  vehicle or vehicles to be utilized by the plan, the 
172.20  administration of the plan, the incentives needed to formulate 
172.21  the plan, the limitations applicable to the plan, and the state 
172.22  resources needed to be dedicated to the plan. 
172.23     Subd. 3.  [REPORT.] The task force shall prepare a report 
172.24  detailing its findings about a potential statewide lump sum 
172.25  volunteer firefighter retirement plan.  The report is due on 
172.26  January 15, 2004, and must be filed with the legislative 
172.27  reference library, the chair of the legislative commission on 
172.28  pensions and retirement, the chair of the state and local 
172.29  government operations committee of the senate, the chair of the 
172.30  state government, economic development and the judiciary budget 
172.31  division of the senate finance committee, the chair of the 
172.32  government operations and veterans affairs policy committee of 
172.33  the house of representatives, and the chair of the state 
172.34  government finance committee of the house of representatives. 
172.35     Subd. 4.  [DATA DISCLOSURE.] In performing their duties 
172.36  under this section, the task force, the management analysis 
173.1   division of the state department of administration, and the 
173.2   consulting actuary retained by the task force shall have access 
173.3   to relevant nonpublic data on volunteer firefighter relief 
173.4   associations held by the office of the state auditor and must 
173.5   comply with the relevant provisions of Minnesota Statutes, 
173.6   chapter 13. 
173.7      Subd. 5.  [APPROPRIATION.] (a) $300,000 is appropriated for 
173.8   the task force from deductions from fire state aid, with 
173.9   $200,000 to be deducted from the fire state aid otherwise 
173.10  payable during October 2002 under Minnesota Statutes, sections 
173.11  69.011 to 69.051, and with $100,000 to be deducted from the fire 
173.12  state aid otherwise payable during October 2003 under Minnesota 
173.13  Statutes, sections 69.011 to 69.051. 
173.14     (b) The amount in paragraph (a) is appropriated to the 
173.15  state auditor for the benefit of the potential statewide lump 
173.16  sum volunteer firefighter retirement plan task force, conducting 
173.17  its study, the preparation of the actuarial cost estimates, and 
173.18  the preparation of its final report. 
173.19     (c) Upon the completion of the study and the filing of the 
173.20  final report, any balance of the appropriation cancels to the 
173.21  fire state aid program for distribution as part of the October 
173.22  2004 fire state aid. 
173.23     Sec. 2.  [EFFECTIVE DATE.] 
173.24     Section 1 is effective on the day following final enactment.
173.25                             ARTICLE 14 
173.26                     ADDITIONAL CLARIFICATIONS
173.27     Section 1.  [CLARIFICATION OF APPROPRIATION.] 
173.28     Subdivision 1.  [PURPOSE.] This section clarifies treatment 
173.29  extended to an individual specified in Laws 2001, chapter 169, 
173.30  section 5, and is intended to eliminate any potential windfall 
173.31  to the public employees retirement association police and fire 
173.32  plan fund and the public employees retirement association 
173.33  general employees plan fund that may result from that session 
173.34  law. 
173.35     Subd. 2.  [ELIGIBILITY.] The eligible individual is an 
173.36  individual specified in Laws 2001, chapter 169, section 5, who 
174.1   was an assistant commissioner in the department of public safety 
174.2   from April 30, 1994, through May 31, 1998, while on an 
174.3   intergovernmental mobility assignment or assignments to the 
174.4   state from the city of Saint Paul police department. 
174.5      Subd. 3.  [SALARY INCREMENT.] The salary increment in any 
174.6   applicable year or portion of a year is the difference between 
174.7   the salary the eligible individual in subdivision 2 received as 
174.8   assistant commissioner and the salary upon which pension 
174.9   contributions were made for that year or portion of a year. 
174.10     Subd. 4.  [BENEFIT COMPUTATIONS.] The retirement benefits, 
174.11  or disability benefits if applicable, under the public employees 
174.12  retirement association police and fire plan and the public 
174.13  employees retirement association general plan are to be computed 
174.14  based on plan law applicable to the eligible individual under 
174.15  subdivision 2 given the eligible individual's termination of 
174.16  service date or dates, or the disability benefit accrual date or 
174.17  dates as applicable, except for inclusion of salary increments 
174.18  under subdivision 3 for purposes of determining average salary 
174.19  under Minnesota Statutes, sections 353.29, subdivision 2, and 
174.20  353.651, subdivision 2. 
174.21     Subd. 5.  [ANNUITY RESERVE COMPARISONS.] The executive 
174.22  director of the public employees retirement association is to 
174.23  determine the increased actuarial reserves, if any, needed to 
174.24  support the annuities from the two applicable public employees 
174.25  retirement association retirement funds on the effective date of 
174.26  retirement or disability from the applicable plans due to this 
174.27  section. 
174.28     Subd. 6.  [COMPARISON TO APPROPRIATION AMOUNTS.] The total 
174.29  amount determined under subdivision 5, if zero or positive, is 
174.30  to be subtracted from the total value of any appropriation 
174.31  received by the public employees retirement association under 
174.32  Laws 2001, chapter 169, section 5, on the date computations 
174.33  under subdivision 5 occur assuming 8.5 percent interest 
174.34  compounded annually from the date the appropriation is received 
174.35  until the computation date under subdivision 5. 
174.36     Subd. 7.  [DISPOSITION OF EXCESS.] The amount determined 
175.1   under subdivision 6, net of the value of any foregone employer 
175.2   contributions including 8.5 percent interest compounded annually 
175.3   relating to the salary increments under subdivision 3, if any, 
175.4   is to be redeposited within 30 days following the date of that 
175.5   determination in the state's general fund. 
175.6      Subd. 8.  [INTERNAL ALLOCATIONS.] Notwithstanding any law 
175.7   to the contrary, the executive director is authorized to place 
175.8   amounts received, if any, due to Laws 2001, chapter 169, section 
175.9   5, in the public employees retirement association general plan 
175.10  fund, or the public employees retirement association police and 
175.11  fire plan fund, or to allocate amounts between these funds as 
175.12  deemed appropriate.  Following the determinations required by 
175.13  this section, the executive director may again reallocate 
175.14  amounts between the two funds to reflect a reasonable allocation 
175.15  of the remaining net appropriation amount. 
175.16     Subd. 9.  [CONTRIBUTION RATIFICATION.] Contributions and 
175.17  interest paid to the association relating to the salary 
175.18  increments referred to in subdivision 3 are authorized for 
175.19  deposit in the public employees retirement association police 
175.20  and fire plan fund and are ratified. 
175.21     Sec. 2.  [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; RECISION 
175.22  OF ANNUITY APPLICATION IN FAVOR OF DISABILITY BENEFIT 
175.23  APPLICATION.] 
175.24     (a) Notwithstanding Minnesota Statutes, section 353.29, 
175.25  subdivision 7, or any other law to the contrary, an eligible 
175.26  person described in paragraph (b) may revoke an application for 
175.27  a retirement annuity from the public employees police and fire 
175.28  plan and may file an application for a disability benefit from 
175.29  the public employees police and fire plan, effective the first 
175.30  day of the month following approval of the disability 
175.31  application. 
175.32     (b) An eligible person is a person who: 
175.33     (1) was born on August 6, 1949; 
175.34     (2) was employed for 27 years with the city of West St. 
175.35  Paul fire department; 
175.36     (3) terminated employment with the city of West St. Paul on 
176.1   January 31, 2001; 
176.2      (4) filed six "first report of injury" documents for back 
176.3   injuries with the city of West St. Paul between June 1984 and 
176.4   December 2000; 
176.5      (5) requested recision of his public employees police and 
176.6   fire plan retirement annuity on February 16, 2001, and tendered 
176.7   a personal check repaying the initial annuity amount; and 
176.8      (6) unsuccessfully appealed to the public employees 
176.9   retirement association board of trustees on May 10, 2001, for 
176.10  authority to rescind a retirement annuity application and to 
176.11  apply for a disability benefit. 
176.12     Sec. 3.  [EFFECTIVE DATE.] 
176.13     Sections 1 and 2 are effective on the day following final 
176.14  enactment.