1.1 	A bill for an act
1.2 	relating to retirement; providing for a cost-of-living adjustment; requiring 
1.3 	a bylaws revision;amending Minnesota Statutes 2008, section 354A.29, 
1.4 	subdivision 3; repealing Minnesota Statutes 2008, section 354A.29, subdivisions 
1.5 	2, 4, 5.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2008, section 354A.29, subdivision 3, is amended to 
1.8 	read:
1.9 		Subd. 3.Postretirement adjustment. (a) The postretirement adjustment described 
1.10 	in the articles and bylaws of the St. Paul Teachers Retirement Fund Association must be 
1.11 	determined by the executive director and approved by the board annually after June 30
1.12 	using the procedures under this section.
1.13 	(b) Commencing in January 2010, and each January thereafter, each eligible person 
1.14 	who has been receiving an annuity or benefit under the articles of incorporation, the 
1.15 	bylaws, or this chapter for at least 12three calendar months as of the end of the fiscal
1.16 	last day of the previous calendar year is eligible to receive a postretirement adjustment of 
1.17 	2.0 percent that is payable each January 1 increase equal to the Consumer Price Index for 
1.18 	urban wage earners and clerical workers (CPI-W) for the third calendar quarter of the most 
1.19 	recent calendar year divided by the value of the same index in the third calendar quarter of 
1.20 	the previous year, as further specified under paragraph (c).
1.21 	(c) The postretirement increase under this section is to be calculated as follows:
1.22 	(1) for each value, the average quarter-to-quarter index change shall be the sum of 
1.23 	the monthly CPI-W index values as determined by the Bureau of Labor Statistics within 
1.24 	the United States Department of Labor, for the months of July, August, and September for 
1.25 	each applicable year, divided by three to derive the quarterly value in each case;
2.1 	(2) the quotient of the average for the second year divided by the resulting average 
2.2 	for the first year as determined under clause (1), minus one, rounded to the nearest 
2.3 	one-tenth of one percent is the full, unadjusted increase to be added to payments to eligible 
2.4 	recipients in the subsequent January payment; and
2.5 	(3) the adjustment may not be less than zero, nor greater than five percent, and is 
2.6 	to be applied as a permanent increase to the regular payment of each eligible benefit 
2.7 	recipient. In the case of any eligible member whose effective date of retirement occurs 
2.8 	during the calendar year before the postretirement increase is applied, the increase for that 
2.9 	member must be prorated on the basis of whole calendar quarters as a fraction of the 
2.10 	previous calendar year, rounded to the third decimal place.

2.11 	Sec. 2. BYLAW REVISION AUTHORIZATION.
 2.12 	Consistent with Minnesota Statutes, section 354A.12, subdivision 4, the board of 
2.13 	the St. Paul Teachers Retirement Fund Association shall revise the bylaws or articles of 
2.14 	incorporation of the teachers retirement fund association to conform with this section.

2.15 	Sec. 3.  REPEALER.
 2.16 	Minnesota Statutes 2008, section 354A.29, subdivisions 2, 4, and 5, are repealed.

2.17 	Sec. 4. EFFECTIVE DATE.
 2.18 	Sections 1 to 3 are effective July 1, 2009.