1.1 	A bill for an act
1.2 	relating to retirement; authorizing the consolidation of the Minneapolis 
1.3 	Employees Retirement Fund with the general employees retirement plan of the 
1.4 	Public Employees Retirement Association; adjusting contribution requirements; 
1.5 	making conforming changes; amending Minnesota Statutes 2008, sections 
1.6 	6.67; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316, subdivision 8; 
1.7 	69.011, subdivision 1; 69.021, subdivision 10; 69.031, subdivision 5; 126C.41, 
1.8 	subdivision 3; 256D.21; 352.01, subdivision 2b; 353.01, subdivisions 2a, 2b, 
1.9 	10, 16; 353.0161, subdivision 1; 353.026; 353.27, subdivisions 2, 3, 3a, 3b, by 
1.10 	adding a subdivision; 353.29, subdivisions 1, 3, by adding a subdivision; 353.30, 
1.11 	subdivision 5; 353.31, subdivisions 1, 1a; 353.32, subdivision 1a; 353.33, 
1.12 	subdivisions 1, 3, 12; 353.34, subdivision 3; 353.37, by adding a subdivision; 
1.13 	353.46, subdivision 6; 353.64, subdivision 7; 354.71; 354A.011, subdivision 27; 
1.14 	354A.39; 356.20, subdivision 2; 356.214, subdivision 1; 356.215, subdivisions 8, 
1.15 	11; 356.30, subdivision 3; 356.302, subdivisions 1, 7; 356.303, subdivision 4; 
1.16 	356.32, subdivision 2; 356.401, subdivision 3; 356.407, subdivision 2; 356.431, 
1.17 	subdivision 1; 356.465, subdivision 3; 356.64; 356.65, subdivision 2; 356.91; 
1.18 	356.96, subdivision 1; 422A.101, subdivision 3; 422A.26; 473.511, subdivision 
1.19 	3; 473.606, subdivision 5; 475.52, subdivision 6; 480.181, subdivision 2; 
1.20 	proposing coding for new law in Minnesota Statutes, chapter 353; repealing 
1.21 	Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 
1.22 	356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13, 13a, 17, 
1.23 	18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 
1.24 	5, 6, 8; 422A.06; 422A.08, subdivisions 1, 5, 5a; 422A.09; 422A.10; 422A.101, 
1.25 	subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; 422A.13; 422A.14, subdivision 1; 
1.26 	422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 4, 5, 6, 
1.27 	7, 8, 9, 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, 7; 422A.19; 422A.20; 
1.28 	422A.21; 422A.22, subdivisions 1, 3, 4, 6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 
1.29 	9, 10, 11, 12; 422A.231; 422A.24; 422A.25.
1.30 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.31 	Section 1. Minnesota Statutes 2008, section 6.67, is amended to read:
1.32 	6.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.
1.33 	Whenever a public accountant in the course of auditing the books and affairs of a 
1.34 	county, city, town, school district, other public corporation, or local public pension plan 
2.1 	governed by section 69.77, sections 69.771 to 69.775, or chapter 354A, 422A, 423B, 
2.2 	423C, or 424A, discovers evidence pointing to nonfeasance, misfeasance, or malfeasance, 
2.3 	on the part of an officer or employee in the conduct of duties and affairs, the public 
2.4 	accountant shall promptly make a report of such discovery to the state auditor and the 
2.5 	county attorney of the county in which the governmental unit is situated and the public 
2.6 	accountant shall also furnish a copy of the report of audit upon completion to said officers. 
2.7 	The county attorney shall act on such report in the same manner as required by law for 
2.8 	reports made to the county attorney by the state auditor.

2.9 	Sec. 2. Minnesota Statutes 2008, section 13D.01, subdivision 1, is amended to read:
2.10 		Subdivision 1.In executive branch, local government. All meetings, including 
2.11 	executive sessions, must be open to the public
2.12 	(a) of a state
2.13 	(1) agency,
2.14 	(2) board,
2.15 	(3) commission, or
2.16 	(4) department,
2.17 	when required or permitted by law to transact public business in a meeting;
2.18 	(b) of the governing body of a
2.19 	(1) school district however organized,
2.20 	(2) unorganized territory,
2.21 	(3) county,
2.22 	(4) statutory or home rule charter city,
2.23 	(5) town, or
2.24 	(6) other public body;
2.25 	(c) of any
2.26 	(1) committee,
2.27 	(2) subcommittee,
2.28 	(3) board,
2.29 	(4) department, or
2.30 	(5) commission,
2.31 	of a public body; and
2.32 	(d) of the governing body or a committee of:
2.33 	(1) a statewide public pension plan defined in section 356A.01, subdivision 24; or  
2.34 	(2) a local public pension plan governed by section 69.77, sections 69.771 to 69.775, 
2.35 	or chapter 354A, 422A, or 423B.  

3.1 	Sec. 3. Minnesota Statutes 2008, section 43A.17, subdivision 9, is amended to read:
3.2 		Subd. 9.Political subdivision compensation limit. (a) The salary and the value of 
3.3 	all other forms of compensation of a person employed by a political subdivision of this 
3.4 	state, excluding a school district, or employed under section 422A.03 may not exceed 110 
3.5 	percent of the salary of the governor as set under section 15A.082, except as provided 
3.6 	in this subdivision. For purposes of this subdivision, "political subdivision of this state" 
3.7 	includes a statutory or home rule charter city, county, town, metropolitan or regional 
3.8 	agency, or other political subdivision, but does not include a hospital, clinic, or health 
3.9 	maintenance organization owned by such a governmental unit.
3.10 	(b) Beginning in 2006, the limit in paragraph (a) shall be adjusted annually in 
3.11 	January. The limit shall equal the limit for the prior year increased by the percentage 
3.12 	increase, if any, in the Consumer Price Index for all-urban consumers from October of the 
3.13 	second prior year to October of the immediately prior year.
3.14 	(c) Deferred compensation and payroll allocations to purchase an individual annuity 
3.15 	contract for an employee are included in determining the employee's salary. Other forms 
3.16 	of compensation which shall be included to determine an employee's total compensation 
3.17 	are all other direct and indirect items of compensation which are not specifically excluded 
3.18 	by this subdivision. Other forms of compensation which shall not be included in a 
3.19 	determination of an employee's total compensation for the purposes of this subdivision are:
3.20 	(1) employee benefits that are also provided for the majority of all other full-time 
3.21 	employees of the political subdivision, vacation and sick leave allowances, health and 
3.22 	dental insurance, disability insurance, term life insurance, and pension benefits or like 
3.23 	benefits the cost of which is borne by the employee or which is not subject to tax as 
3.24 	income under the Internal Revenue Code of 1986;
3.25 	(2) dues paid to organizations that are of a civic, professional, educational, or 
3.26 	governmental nature; and
3.27 	(3) reimbursement for actual expenses incurred by the employee which the 
3.28 	governing body determines to be directly related to the performance of job responsibilities, 
3.29 	including any relocation expenses paid during the initial year of employment.
3.30 	The value of other forms of compensation shall be the annual cost to the political 
3.31 	subdivision for the provision of the compensation.
3.32 	(d) The salary of a medical doctor or doctor of osteopathy occupying a position that 
3.33 	the governing body of the political subdivision has determined requires an M.D. or D.O. 
3.34 	degree is excluded from the limitation in this subdivision.
3.35 	(e) The commissioner may increase the limitation in this subdivision for a position 
3.36 	that the commissioner has determined requires special expertise necessitating a higher 
4.1 	salary to attract or retain a qualified person. The commissioner shall review each 
4.2 	proposed increase giving due consideration to salary rates paid to other persons with 
4.3 	similar responsibilities in the state and nation. The commissioner may not increase the 
4.4 	limitation until the commissioner has presented the proposed increase to the Legislative 
4.5 	Coordinating Commission and received the commission's recommendation on it. The 
4.6 	recommendation is advisory only. If the commission does not give its recommendation 
4.7 	on a proposed increase within 30 days from its receipt of the proposal, the commission 
4.8 	is deemed to have made no recommendation. If the commissioner grants or granted an 
4.9 	increase under this paragraph, the new limitation shall be adjusted beginning in August 
4.10 	2005 and in each subsequent calendar year in January by the percentage increase equal to 
4.11 	the percentage increase, if any, in the Consumer Price Index for all-urban consumers from 
4.12 	October of the second prior year to October of the immediately prior year.

4.13 	Sec. 4. Minnesota Statutes 2008, section 43A.316, subdivision 8, is amended to read:
4.14 		Subd. 8.Continuation of coverage. (a) A former employee of an employer 
4.15 	participating in the program who is receiving a public pension disability benefit or an 
4.16 	annuity or has met the age and service requirements necessary to receive an annuity under 
4.17 	chapter 353, 353C, 354, 354A, 356, 422A, 423, 423A, or 424, and the former employee's 
4.18 	dependents, are eligible to participate in the program. This participation is at the person's 
4.19 	expense unless a collective bargaining agreement or personnel policy provides otherwise. 
4.20 	Premiums for these participants must be established by the commissioner.
4.21 	The commissioner may provide policy exclusions for preexisting conditions 
4.22 	only when there is a break in coverage between a participant's coverage under the 
4.23 	employment-based group insurance program and the participant's coverage under this 
4.24 	section. An employer shall notify an employee of the option to participate under this 
4.25 	paragraph no later than the effective date of retirement. The retired employee or the 
4.26 	employer of a participating group on behalf of a current or retired employee shall notify 
4.27 	the commissioner within 30 days of the effective date of retirement of intent to participate 
4.28 	in the program according to the rules established by the commissioner.
4.29 	(b) The spouse of a deceased employee or former employee may purchase the 
4.30 	benefits provided at premiums established by the commissioner if the spouse was a 
4.31 	dependent under the employee's or former employee's coverage under this section at the 
4.32 	time of the death. The spouse remains eligible to participate in the program as long as 
4.33 	the group that included the deceased employee or former employee participates in the 
4.34 	program. Coverage under this clause must be coordinated with relevant insurance benefits 
4.35 	provided through the federally sponsored Medicare program.
5.1 	(c) The program benefits must continue in the event of strike permitted by section 
5.2 	179A.18, if the exclusive representative chooses to have coverage continue and the 
5.3 	employee pays the total monthly premiums when due. 
5.4 	(d) A participant who discontinues coverage may not reenroll.
5.5 	Persons participating under these paragraphs shall make appropriate premium 
5.6 	payments in the time and manner established by the commissioner.

5.7 	Sec. 5. Minnesota Statutes 2008, section 69.011, subdivision 1, is amended to read:
5.8 		Subdivision 1.Definitions. Unless the language or context clearly indicates that a 
5.9 	different meaning is intended, the following words and terms shall for the purposes of this 
5.10 	chapter and chapters 423, 423A, 424 and 424A have the meanings ascribed to them:
5.11 	(a) "Commissioner" means the commissioner of revenue.
5.12 	(b) "Municipality" means:
5.13 	(1) a home rule charter or statutory city;
5.14 	(2) an organized town;
5.15 	(3) a park district subject to chapter 398;
5.16 	(4) the University of Minnesota;
5.17 	(5) for purposes of the fire state aid program only, an American Indian tribal 
5.18 	government entity located within a federally recognized American Indian reservation;
5.19 	(6) for purposes of the police state aid program only, an American Indian tribal 
5.20 	government with a tribal police department which exercises state arrest powers under 
5.21 	section 626.90, 626.91, 626.92, or 626.93; 
5.22 	(7) for purposes of the police state aid program only, the Metropolitan Airports 
5.23 	Commission with respect to peace officers covered under chapter 422A; and
5.24 	(8) for purposes of the police state aid program only, the Department of Natural 
5.25 	Resources and the Department of Public Safety with respect to peace officers covered 
5.26 	under chapter 352B.
5.27 	(c) "Minnesota Firetown Premium Report" means a form prescribed by the 
5.28 	commissioner containing space for reporting by insurers of fire, lightning, sprinkler 
5.29 	leakage and extended coverage premiums received upon risks located or to be performed 
5.30 	in this state less return premiums and dividends.
5.31 	(d) "Firetown" means the area serviced by any municipality having a qualified fire 
5.32 	department or a qualified incorporated fire department having a subsidiary volunteer 
5.33 	firefighters' relief association.
5.34 	(e) "Market value" means latest available market value of all property in a taxing 
5.35 	jurisdiction, whether the property is subject to taxation, or exempt from ad valorem 
6.1 	taxation obtained from information which appears on abstracts filed with the commissioner 
6.2 	of revenue or equalized by the State Board of Equalization.
6.3 	(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the 
6.4 	commissioner for reporting by each fire and casualty insurer of all premiums received 
6.5 	upon direct business received by it in this state, or by its agents for it, in cash or otherwise, 
6.6 	during the preceding calendar year, with reference to insurance written for insuring against 
6.7 	the perils contained in auto insurance coverages as reported in the Minnesota business 
6.8 	schedule of the annual financial statement which each insurer is required to file with 
6.9 	the commissioner in accordance with the governing laws or rules less return premiums 
6.10 	and dividends.
6.11 	(g) "Peace officer" means any person:
6.12 	(1) whose primary source of income derived from wages is from direct employment 
6.13 	by a municipality or county as a law enforcement officer on a full-time basis of not less 
6.14 	than 30 hours per week;
6.15 	(2) who has been employed for a minimum of six months prior to December 31 
6.16 	preceding the date of the current year's certification under subdivision 2, clause (b);
6.17 	(3) who is sworn to enforce the general criminal laws of the state and local 
6.18 	ordinances;
6.19 	(4) who is licensed by the Peace Officers Standards and Training Board and is 
6.20 	authorized to arrest with a warrant; and
6.21 	(5) who is a member of a local police relief association to which section 69.77 
6.22 	applies, the State Patrol retirement plan,or the public employees police and fire fund, or 
6.23 	the Minneapolis Employees Retirement Fund. 
6.24 	(h) "Full-time equivalent number of peace officers providing contract service" means 
6.25 	the integral or fractional number of peace officers which would be necessary to provide 
6.26 	the contract service if all peace officers providing service were employed on a full-time 
6.27 	basis as defined by the employing unit and the municipality receiving the contract service.
6.28 	(i) "Retirement benefits other than a service pension" means any disbursement 
6.29 	authorized under section 424A.05, subdivision 3, clauses (2) and (3). 
6.30 	(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person 
6.31 	who was elected or appointed to the specified position or, in the absence of the person, 
6.32 	another person who is designated by the applicable governing body. In a park district, 
6.33 	the clerk is the secretary of the board of park district commissioners. In the case of the 
6.34 	University of Minnesota, the clerk is that official designated by the Board of Regents. 
6.35 	For the Metropolitan Airports Commission, the clerk is the person designated by the 
6.36 	commission. For the Department of Natural Resources or the Department of Public Safety, 
7.1 	the clerk is the respective commissioner. For a tribal police department which exercises 
7.2 	state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the clerk is the person 
7.3 	designated by the applicable American Indian tribal government. 

7.4 	Sec. 6. Minnesota Statutes 2008, section 69.021, subdivision 10, is amended to read:
7.5 		Subd. 10.Reduction in police state aid apportionment. (a) The commissioner of 
7.6 	revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph 
7.7 	(b), 6, and 7a, for eligible employer units by any excess police state aid.
7.8 	(b)  "Excess police state aid" is:
7.9 	(1) for counties and for municipalities in which police retirement coverage is 
7.10 	provided wholly by the public employees police and fire fund and all police officers are 
7.11 	members of the plan governed by sections 353.63 to 353.657, the amount in excess of the 
7.12 	employer's total prior calendar year obligation as defined in paragraph (c), as certified by 
7.13 	the executive director of the Public Employees Retirement Association; 
7.14 	(2) for municipalities in which police retirement coverage is provided in part by the 
7.15 	public employees police and fire fund governed by sections 353.63 to 353.657 and in 
7.16 	part by a local police consolidation account governed by chapter 353A, and established 
7.17 	before March 2, 1999, for which the municipality declined merger under section 353.665, 
7.18 	subdivision 1, or established after March 1, 1999, the amount in excess of the employer's 
7.19 	total prior calendar year obligation as defined in paragraph (c), plus the amount of the 
7.20 	employer's total prior calendar year obligation under section 353A.09, subdivision 5, 
7.21 	paragraphs (a) and (b), as certified by the executive director of the Public Employees 
7.22 	Retirement Association; 
7.23 	(3)  for municipalities in which police retirement coverage is provided by the public 
7.24 	employees police and fire plan governed by sections 353.63 to 353.657, in which police 
7.25 	retirement coverage was provided by a police consolidation account under chapter 
7.26 	353A before July 1, 1999, and for which the municipality has an additional municipal 
7.27 	contribution under section 353.665, subdivision 8, paragraph (b), the amount in excess of 
7.28 	the employer's total prior calendar year obligation as defined in paragraph (c), plus the 
7.29 	amount of any additional municipal contribution under section 353.665, subdivision 8, 
7.30 	paragraph (b), until the year 2010, as certified by the executive director of the Public 
7.31 	Employees Retirement Association; 
7.32 	(4) for municipalities in which police retirement coverage is provided in part by the 
7.33 	public employees police and fire fund governed by sections 353.63 to 353.657 and in part 
7.34 	by a local police relief association governed by sections 69.77 and 423A.01, the amount 
7.35 	in excess of the employer's total prior calendar year obligation as defined in paragraph 
8.1 	(c), as certified by the executive director of the public employees retirement association, 
8.2 	plus the amount of the financial requirements of the relief association certified to the 
8.3 	applicable municipality during the prior calendar year under section 69.77, subdivisions 4 
8.4 	and 5, reduced by the amount of member contributions deducted from the covered salary 
8.5 	of the relief association during the prior calendar year under section 69.77, subdivision 3, 
8.6 	as certified by the chief administrative officer of the applicable municipality; 
8.7 	(5) for the Metropolitan Airports Commission, if there are police officers hired 
8.8 	before July 1, 1978, with retirement coverage by the Minneapolis Employees Retirement 
8.9 	Fund remaining, the amount in excess of the commission's total prior calendar year 
8.10 	obligation as defined in paragraph (c), as certified by the executive director of the Public 
8.11 	Employees Retirement Association, plus the amount determined by expressing the 
8.12 	commission's total prior calendar year contribution to the Minneapolis Employees 
8.13 	Retirement Fund under section 422A.101, subdivisions 2 and 2a, as a percentage of 
8.14 	the commission's total prior calendar year covered payroll for commission employees 
8.15 	covered by the Minneapolis Employees Retirement Fund and applying that percentage 
8.16 	to the commission's total prior calendar year covered payroll for commission police 
8.17 	officers covered by the Minneapolis Employees Retirement Fund, as certified by the chief 
8.18 	administrative officer of the Metropolitan Airports Commission; and 
8.19 	(6) for the Department of Natural Resources and for the Department of Public 
8.20 	Safety, the amount in excess of the employer's total prior calendar year obligation under 
8.21 	section 352B.02, subdivision 1c, for plan members who are peace officers under section 
8.22 	69.011, subdivision 1, clause (g), as certified by the executive director of the Minnesota 
8.23 	State Retirement System. 
8.24 	(c) The employer's total prior calendar year obligation with respect to the public 
8.25 	employees police and fire plan is the total prior calendar year obligation under section 
8.26 	353.65, subdivision 3, for police officers as defined in section 353.64, subdivision 2, 
8.27 	and the actual total prior calendar year obligation under section 353.65, subdivision 3, 
8.28 	for firefighters, as defined in section 353.64, subdivision 3, but not to exceed for those 
8.29 	firefighters the applicable following amounts: 

8.30		Municipality
	Maximum Amount

8.31		Albert Lea
	$54,157.01
		
8.32		Anoka
	10,399.31
		
8.33		Apple Valley
	5,442.44
		
8.34		Austin
	49,864.73
		
8.35		Bemidji
	27,671.38
		
8.36		Brooklyn Center
	6,605.92
		
8.37		Brooklyn Park
	24,002.26
		
9.1		Burnsville
	15,956.00
		
9.2		Cloquet
	4,260.49
		
9.3		Coon Rapids
	39,920.00
		
9.4		Cottage Grove
	8,588.48
		
9.5		Crystal
	5,855.00
		
9.6		East Grand Forks
	51,009.88
		
9.7		Edina
	32,251.00
		
9.8		Elk River
	5,216.55
		
9.9		Ely
	13,584.16
		
9.10		Eveleth
	16,288.27
		
9.11		Fergus Falls
	6,742.00
		
9.12		Fridley
	33,420.64
		
9.13		Golden Valley
	11,744.61
		
9.14		Hastings
	16,561.00
		
9.15		Hopkins
	4,324.23
		
9.16		International Falls
	14,400.69
		
9.17		Lakeville
	782.35
		
9.18		Lino Lakes
	5,324.00
		
9.19		Little Falls
	7,889.41
		
9.20		Maple Grove
	6,707.54
		
9.21		Maplewood
	8,476.69
		
9.22		Minnetonka
	10,403.00
		
9.23		Montevideo
	1,307.66
		
9.24		Moorhead
	68,069.26
		
9.25		New Hope
	6,739.72
		
9.26		North St. Paul
	4,241.14
		
9.27		Northfield
	770.63
		
9.28		Owatonna
	37,292.67
		
9.29		Plymouth
	6,754.71
		
9.30		Red Wing
	3,504.01
		
9.31		Richfield
	53,757.96
		
9.32		RosemontRosemount
	1,712.55
		
9.33		Roseville
	9,854.51
		
9.34		St. Anthony
	33,055.00
		
9.35		St. Louis Park
	53,643.11
		
9.36		Thief River Falls
	28,365.04
		
9.37		Virginia
	31,164.46
		
9.38		Waseca
	11,135.17
		
9.39		West St. Paul
	15,707.20
		
9.40		White Bear Lake
	6,521.04
		
9.41		Woodbury
	3,613.00
		
9.42		any other municipality
	0.00
		
10.1 	(d) The total amount of excess police state aid must be deposited in the excess 
10.2 	police state-aid account in the general fund, administered and distributed as provided 
10.3 	in subdivision 11.

10.4 	Sec. 7. Minnesota Statutes 2008, section 69.031, subdivision 5, is amended to read:
10.5 		Subd. 5.Deposit of state aid. (a) The municipal treasurer shall, within 30 days 
10.6 	after receipt, transmit the fire state aid to the treasurer of the duly incorporated firefighters' 
10.7 	relief association if there is one organized and the association has filed a financial report 
10.8 	with the municipality. If the relief association has not filed a financial report with the 
10.9 	municipality, the municipal treasurer shall delay transmission of the fire state aid to the 
10.10 	relief association until the complete financial report is filed. If there is no relief association 
10.11 	organized, or if the association has dissolved, or has been removed as trustees of state aid, 
10.12 	then the treasurer of the municipality shall deposit the money in the municipal treasury as 
10.13 	provided for in section 424A.08 and the money may be disbursed only for the purposes 
10.14 	and in the manner set forth in that section.  
10.15 	(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the 
10.16 	police state aid in the following manner:
10.17 	(1) For a municipality in which a local police relief association exists and all peace 
10.18 	officers are members of the association, the total state aid must be transmitted to the 
10.19 	treasurer of the relief association within 30 days of the date of receipt, and the treasurer 
10.20 	of the relief association shall immediately deposit the total state aid in the special fund 
10.21 	of the relief association;
10.22 	(2) For a municipality in which police retirement coverage is provided by the public 
10.23 	employees police and fire fund and all peace officers are members of the fund, including 
10.24 	municipalities covered by section 353.665, the total state aid must be applied toward the 
10.25 	municipality's employer contribution to the public employees police and fire fund under 
10.26 	sections 353.65, subdivision 3, and 353.665, subdivision 8, paragraph (b), if applicable; or  
10.27 	(3) For a municipality other than a city of the first class with a population of more 
10.28 	than 300,000 in which both a police relief association exists and police retirement 
10.29 	coverage is provided in part by the public employees police and fire fund, the municipality 
10.30 	may elect at its option to transmit the total state aid to the treasurer of the relief association 
10.31 	as provided in clause (1), to use the total state aid to apply toward the municipality's 
10.32 	employer contribution to the public employees police and fire fund subject to all the 
10.33 	provisions set forth in clause (2), or to allot the total state aid proportionately to be 
10.34 	transmitted to the police relief association as provided in this subdivision and to apply 
10.35 	toward the municipality's employer contribution to the public employees police and fire 
11.1 	fund subject to the provisions of clause (2) on the basis of the respective number of active 
11.2 	full-time peace officers, as defined in section 69.011, subdivision 1, clause (g).  
11.3 	For a city of the first class with a population of more than 300,000, in addition, the 
11.4 	city may elect to allot the appropriate portion of the total police state aid to apply toward 
11.5 	the employer contribution of the city to the public employees police and fire fund based 
11.6 	on the covered salary of police officers covered by the fund each payroll period and to 
11.7 	transmit the balance to the police relief association; or
11.8 	(4) For a municipality in which police retirement coverage is provided in part by 
11.9 	the public employees police and fire fund and in part by a local police consolidation 
11.10 	account governed by chapter 353A and established before March 2, 1999, for which the 
11.11 	municipality declined merger under section 353.665, subdivision 1, or established after 
11.12 	March 1, 1999, the total police state aid must be applied towards the municipality's total 
11.13 	employer contribution to the public employees police and fire fund and to the local police 
11.14 	consolidation account under sections 353.65, subdivision 3, and 353A.09, subdivision 5.  
11.15 	(c) The county treasurer, upon receipt of the police state aid for the county, shall 
11.16 	apply the total state aid toward the county's employer contribution to the public employees 
11.17 	police and fire fund under section 353.65, subdivision 3.  
11.18 	(d) The designated Metropolitan Airports Commission official, upon receipt of the 
11.19 	police state aid for the Metropolitan Airports Commission, shall apply the total police 
11.20 	state aid first toward the commission's employer contribution for police officers to the 
11.21 	Minneapolis Employees Retirement Fund under section 422A.101, subdivision 2a, and, if 
11.22 	there is any amount of police state aid remaining, shall apply that remainder toward the 
11.23 	commission's employer contribution for police officers to the public employees police and 
11.24 	fire plan under section 353.65, subdivision 3.  
11.25 	(e) The police state aid apportioned to the Departments of Public Safety and Natural 
11.26 	Resources under section 69.021, subdivision 7a, is appropriated to the commissioner of 
11.27 	finance for transfer to the funds and accounts from which the salaries of peace officers 
11.28 	certified under section 69.011, subdivision 2a2b, are paid. The commissioner of revenue 
11.29 	shall certify to the commissioners of public safety, natural resources, and finance the 
11.30 	amounts to be transferred from the appropriation for police state aid. The commissioners 
11.31 	of public safety and natural resources shall certify to the commissioner of finance the 
11.32 	amounts to be credited to each of the funds and accounts from which the peace officers 
11.33 	employed by their respective departments are paid. Each commissioner must allocate the 
11.34 	police state aid first for employer contributions for employees funded from the general 
11.35 	fund and then for employer contributions for employees funded from other funds. For 
12.1 	peace officers whose salaries are paid from the general fund, the amounts transferred from 
12.2 	the appropriation for police state aid must be canceled to the general fund.  

12.3 	Sec. 8. Minnesota Statutes 2008, section 126C.41, subdivision 3, is amended to read:
12.4 		Subd. 3.Retirement levies. (a) In 1991 and each year thereafter, a district to which 
12.5 	this subdivision applies may levy an additional amount required for contributions to the 
12.6 	general employees retirement plan of the Public Employees Retirement Association as the 
12.7 	successor of the Minneapolis Employees Retirement Fund as a result of the maximum 
12.8 	dollar amount limitation on state contributions to the fundthat plan imposed under 
12.9 	section 422A.101, subdivision 3. The additional levy must not exceed the most recent 
12.10 	amount certified by the board of the Minneapolis Employees Retirement Fundexecutive 
12.11 	director of the Public Employees Retirement Association as the district's share of the 
12.12 	contribution requirement in excess of the maximum state contribution under section 
12.13 	422A.101, subdivision 3.  
12.14 	(b) For taxes payable in 1994 and thereafter, Special School District No. 1, 
12.15 	Minneapolis, and Independent School District No. 625, St. Paul, may levy for the increase 
12.16 	in the employer retirement fund contributions, under Laws 1992, chapter 598, article 5, 
12.17 	section 1.
12.18 	(c) If the employer retirement fund contributions under section 354A.12, subdivision 
12.19 	2a, are increased for fiscal year 1994 or later fiscal years, Special School District No. 1, 
12.20 	Minneapolis, and Independent School District No. 625, St. Paul, may levy in payable 
12.21 	1994 or later an amount equal to the amount derived by applying the net increase in 
12.22 	the employer retirement fund contribution rate of the respective teacher retirement fund 
12.23 	association between fiscal year 1993 and the fiscal year beginning in the year after the 
12.24 	levy is certified to the total covered payroll of the applicable teacher retirement fund 
12.25 	association. If an applicable school district levies under this paragraph, they may not 
12.26 	levy under paragraph (b).  
12.27 	(d) In addition to the levy authorized under paragraph (c), Special School District 
12.28 	No. 1, Minneapolis, may also levy payable in 1997 or later an amount equal to the 
12.29 	contributions under section 423A.02, subdivision 3, and may also levy in payable 1994 
12.30 	or later an amount equal to the state aid contribution under section 354A.12, subdivision 
12.31 	3b. Independent School District No. 625, St. Paul, may levy payable in 1997 or later an 
12.32 	amount equal to the supplemental contributions under section 423A.02, subdivision 3.  

13.1 	Sec. 9. Minnesota Statutes 2008, section 256D.21, is amended to read:
13.2 	256D.21 CONTINUATION OF BENEFITS; FORMER MINNEAPOLIS 
13.3 	EMPLOYEES.
13.4 		Subdivision 1.Continuation of benefits. Each employee of the city of Minneapolis 
13.5 	who is transferred to and employed by the county under the provisions of section 256D.20
13.6 	and who is a contributing member of a retirement system organized under the provisions 
13.7 	of chapter 422A, shall continue to beis a member of that systemthe general employees 
13.8 	retirement plan of the Public Employees Retirement Association and is entitled to all of 
13.9 	the applicable benefits conferred therebyby and subject to all the restrictions of chapter 
13.10 	422A, unless the member applies to cancel membership within six months after January 1, 
13.11 	1974 sections 353.01 to 353.46, 353.67, and 353.71. 
13.12 		Subd. 2.City obligation. The cost to the public of that portion of the retirement 
13.13 	allowances or other benefits accrued while any such employee was in the service of the 
13.14 	city of Minneapolis shall remain an obligation of the city and a tax shall be levied and 
13.15 	collected by it to discharge its obligation as provided by chapter 422A in sections 353.27, 
13.16 	subdivisions 3 and 3a, and 353.47, subdivision 6.
13.17 		Subd. 3.County obligation. The cost to the public of the retirement allowances or 
13.18 	other benefits accruing to employees so transferred to and employed by the county shall 
13.19 	be the obligation of and paid by the county at such time as the retirement board shall fix 
13.20 	and determine in accordance with chapter 422A in sections 353.27, subdivisions 3 and 
13.21 	3a, and 353.47, subdivision 6. The county shall pay to the municipalgeneral employees 
13.22 	retirement fund an amount certified to the county auditor of the county by the retirement 
13.23 	board as the cost of the retirement allowances and other benefits accruing and owing to 
13.24 	such county employees of the Public Employees Retirement Association those amounts. 
13.25 	The cost to the public of the retirement allowances as herein provided shallcoverage 
13.26 	under this section must be paid from the county revenue fund by the county auditor upon 
13.27 	receipt of certification from the retirement board as herein provided, and the county board 
13.28 	is authorized to levy and collect such taxes as may be necessary to pay such costs.

13.29 	Sec. 10. Minnesota Statutes 2008, section 352.01, subdivision 2b, is amended to read:
13.30 		Subd. 2b. Excluded employees. "State employee" does not include: 
13.31 	(1) students employed by the University of Minnesota, or the state colleges and 
13.32 	universities, unless approved for coverage by the Board of Regents of the University of 
13.33 	Minnesota or the Board of Trustees of the Minnesota State Colleges and Universities, 
13.34 	whichever is applicable; 
14.1 	(2) employees who are eligible for membership in the state Teachers Retirement 
14.2 	Association, except employees of the Department of Education who have chosen or may 
14.3 	choose to be covered by the general state employees retirement plan of the Minnesota 
14.4 	State Retirement System instead of the Teachers Retirement Association; 
14.5 	(3) employees of the University of Minnesota who are excluded from coverage by 
14.6 	action of the Board of Regents; 
14.7 	(4) officers and enlisted personnel in the National Guard and the naval militia who 
14.8 	are assigned to permanent peacetime duty and who under federal law are or are required to 
14.9 	be members of a federal retirement system; 
14.10 	(5) election officers; 
14.11 	(6) persons who are engaged in public work for the state but who are employed 
14.12 	by contractors when the performance of the contract is authorized by the legislature or 
14.13 	other competent authority; 
14.14 	(7) officers and employees of the senate, or of the house of representatives, or of a 
14.15 	legislative committee or commission who are temporarily employed; 
14.16 	(8) receivers, jurors, notaries public, and court employees who are not in the judicial 
14.17 	branch as defined in section 43A.02, subdivision 25, except referees and adjusters 
14.18 	employed by the Department of Labor and Industry; 
14.19 	(9) patient and inmate help in state charitable, penal, and correctional institutions 
14.20 	including the Minnesota Veterans Home; 
14.21 	(10) persons who are employed for professional services where the service is 
14.22 	incidental to their regular professional duties and whose compensation is paid on a per 
14.23 	diem basis; 
14.24 	(11) employees of the Sibley House Association; 
14.25 	(12) the members of any state board or commission who serve the state intermittently 
14.26 	and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those 
14.27 	boards if their compensation is $5,000 or less per year, or, if they are legally prohibited 
14.28 	from serving more than three years; and the board of managers of the State Agricultural 
14.29 	Society and its treasurer unless the treasurer is also its full-time secretary; 
14.30 	(13) state troopers and persons who are described in section 352B.01, subdivision 2, 
14.31 	clauses (2) to (6); 
14.32 	(14) temporary employees of the Minnesota State Fair who are employed on or 
14.33 	after July 1 for a period not to extend beyond October 15 of that year; and persons who 
14.34 	are employed at any time by the state fair administration for special events held on the 
14.35 	fairgrounds; 
15.1 	(15) emergency employees who are in the classified service; except that if an 
15.2 	emergency employee, within the same pay period, becomes a provisional or probationary 
15.3 	employee on other than a temporary basis, the employee shall be considered a "state 
15.4 	employee" retroactively to the beginning of the pay period; 
15.5 	(16) temporary employees in the classified service, and temporary employees in the 
15.6 	unclassified service who are appointed for a definite period of not more than six months 
15.7 	and who are employed less than six months in any one-year period; 
15.8 	(17) interns hired for six months or less and trainee employees, except those listed in 
15.9 	subdivision 2a, clause (8); 
15.10 	(18) persons whose compensation is paid on a fee basis or as an independent 
15.11 	contractor; 
15.12 	(19) state employees who are employed by the Board of Trustees of the Minnesota 
15.13 	State Colleges and Universities in unclassified positions enumerated in section 43A.08, 
15.14 	subdivision 1, clause (9); 
15.15 	(20) state employees who in any year have credit for 12 months service as teachers 
15.16 	in the public schools of the state and as teachers are members of the Teachers Retirement 
15.17 	Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for 
15.18 	incidental employment as a state employee that is not covered by one of the teacher 
15.19 	retirement associations or systems; 
15.20 	(21) employees of the adjutant general who are employed on an unlimited 
15.21 	intermittent or temporary basis in the classified or unclassified service for the support of 
15.22 	Army and Air National Guard training facilities; 
15.23 	(22) chaplains and nuns who are excluded from coverage under the federal Old 
15.24 	Age, Survivors, Disability, and Health Insurance Program for the performance of service 
15.25 	as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no 
15.26 	irrevocable election of coverage has been made under section 3121(r) of the Internal 
15.27 	Revenue Code of 1986, as amended through December 31, 1992; 
15.28 	(23) examination monitors who are employed by departments, agencies, 
15.29 	commissions, and boards to conduct examinations required by law; 
15.30 	(24) persons who are appointed to serve as members of fact-finding commissions or 
15.31 	adjustment panels, arbitrators, or labor referees under chapter 179; 
15.32 	(25) temporary employees who are employed for limited periods under any state or 
15.33 	federal program for training or rehabilitation, including persons who are employed for 
15.34 	limited periods from areas of economic distress, but not including skilled and supervisory 
15.35 	personnel and persons having civil service status covered by the system; 
16.1 	(26) full-time students who are employed by the Minnesota Historical Society 
16.2 	intermittently during part of the year and full-time during the summer months; 
16.3 	(27) temporary employees who are appointed for not more than six months, of 
16.4 	the Metropolitan Council and of any of its statutory boards, if the board members are 
16.5 	appointed by the Metropolitan Council; 
16.6 	(28) persons who are employed in positions designated by the Department of 
16.7 	Finance as student workers; 
16.8 	(29) members of trades who are employed by the successor to the Metropolitan 
16.9 	Waste Control Commission, who have trade union pension plan coverage under a 
16.10 	collective bargaining agreement, and who are first employed after June 1, 1977; 
16.11 	(30) off-duty peace officers while employed by the Metropolitan Council; 
16.12 	(31) persons who are employed as full-time police officers by the Metropolitan 
16.13 	Council and as police officers are members of the public employees police and fire fund; 
16.14 	(32) persons who are employed as full-time firefighters by the Department of Military 
16.15 	Affairs and as firefighters are members of the public employees police and fire fund; 
16.16 	(33) foreign citizens with a work permit of less than three years, or an H-1b/JV visa 
16.17 	valid for less than three years of employment, unless notice of extension is supplied which 
16.18 	allows them to work for three or more years as of the date the extension is granted, in 
16.19 	which case they are eligible for coverage from the date extended; and 
16.20 	(34) persons who are employed by the Board of Trustees of the Minnesota State 
16.21 	Colleges and Universities and who elected to remain members of the Public Employees 
16.22 	Retirement Association or of the former Minneapolis Employees Retirement Fund, 
16.23 	whichever applies, under Minnesota Statutes 1994, section 136C.75. 

16.24 	Sec. 11. Minnesota Statutes 2008, section 353.01, subdivision 2a, is amended to read:
16.25 		Subd. 2a.Included employees. (a) Public employees whose salary from 
16.26 	employment in one or more positions within one governmental subdivision exceeds $425 
16.27 	in any month shall participate as members of the association. If the salary is less than 
16.28 	$425 in a subsequent month, the employee retains membership eligibility. Eligible public 
16.29 	employees shall participate as members of the association with retirement coverage by 
16.30 	the public employees retirement plan or the public employees police and fire retirement 
16.31 	plan under this chapter, or the local government correctional employees retirement plan 
16.32 	under chapter 353E, whichever applies, as a condition of their employment on the first 
16.33 	day of employment unless they:
16.34 	(1) are specifically excluded under subdivision 2b;
17.1 	(2) do not exercise their option to elect retirement coverage in the association as 
17.2 	provided in subdivision 2d, paragraph (a); or
17.3 	(3) are employees of the governmental subdivisions listed in subdivision 2d, 
17.4 	paragraph (b), where the governmental subdivision has not elected to participate as a 
17.5 	governmental subdivision covered by the association.
17.6 	(b) A public employee who was a member of the association on June 30, 2002, 
17.7 	based on employment that qualified for membership coverage by the public employees 
17.8 	retirement plan or the public employees police and fire plan under this chapter, or the 
17.9 	local government correctional employees retirement plan under chapter 353E as of June 
17.10 	30, 2002, retains that membership for the duration of the person's employment in that 
17.11 	position or incumbency in elected office. Except as provided in subdivision 28, the person 
17.12 	shall participate as a member until the employee or elected official terminates public 
17.13 	employment under subdivision 11a or terminates membership under subdivision 11b.
17.14 	(c) Public employees under paragraph (a) include physicians under section 353D.01, 
17.15 	subdivision 2, who do not elect public employees defined contribution plan coverage 
17.16 	under section 353D.02, subdivision 2.
17.17 	(d) Employees who were members of the Minneapolis Employees Retirement Fund 
17.18 	on July 1, 2008, and on June 29, 2010, shall participate as members of the association.

17.19 	Sec. 12. Minnesota Statutes 2008, section 353.01, subdivision 2b, is amended to read:
17.20 		Subd. 2b.Excluded employees. The following public employees are not eligible 
17.21 	to participate as members of the association with retirement coverage by the public 
17.22 	employees retirement plan, the local government correctional employees retirement plan 
17.23 	under chapter 353E, or the public employees police and fire retirement plan:
17.24 	(1) public officers, other than county sheriffs, who are elected to a governing body, 
17.25 	or persons who are appointed to fill a vacancy in an elective office of a governing body, 
17.26 	whose term of office commences on or after July 1, 2002, for the service to be rendered 
17.27 	in that elective position;
17.28 	(2) election officers or election judges;
17.29 	(3) patient and inmate personnel who perform services for a governmental 
17.30 	subdivision;
17.31 	(4) except as otherwise specified in subdivision 12a, employees who are hired for 
17.32 	a temporary position as defined under subdivision 12a, and employees who resign from 
17.33 	a nontemporary position and accept a temporary position within 30 days in the same 
17.34 	governmental subdivision;
18.1 	(5) employees who are employed by reason of work emergency caused by fire, 
18.2 	flood, storm, or similar disaster;
18.3 	(6) employees who by virtue of their employment in one governmental subdivision 
18.4 	are required by law to be a member of and to contribute to any of the plans or funds 
18.5 	administered by the Minnesota State Retirement System, the Teachers Retirement 
18.6 	Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers 
18.7 	Retirement Fund Association, the Minneapolis Employees Retirement Fund, or any police 
18.8 	or firefighters relief association governed by section 69.77 that has not consolidated 
18.9 	with the Public Employees Retirement Association, or any local police or firefighters 
18.10 	consolidation account who have not elected the type of benefit coverage provided by the 
18.11 	public employees police and fire fund under sections 353A.01 to 353A.10, or any persons 
18.12 	covered by section 353.665, subdivision 4, 5, or 6, who have not elected public employees 
18.13 	police and fire plan benefit coverage. This clause must not be construed to prevent a person 
18.14 	from being a member of and contributing to the Public Employees Retirement Association 
18.15 	and also belonging to and contributing to another public pension plan or fund for other 
18.16 	service occurring during the same period of time. A person who meets the definition of 
18.17 	"public employee" in subdivision 2 by virtue of other service occurring during the same 
18.18 	period of time becomes a member of the association unless contributions are made to 
18.19 	another public retirement fund on the salary based on the other service or to the Teachers 
18.20 	Retirement Association by a teacher as defined in section 354.05, subdivision 2;
18.21 	(7) persons who are members of a religious order and are excluded from coverage 
18.22 	under the federal Old Age, Survivors, Disability, and Health Insurance Program for the 
18.23 	performance of service as specified in United States Code, title 42, section 410(a)(8)(A), 
18.24 	as amended through January 1, 1987, if no irrevocable election of coverage has been made 
18.25 	under section 3121(r) of the Internal Revenue Code of 1954, as amended;
18.26 	(8) employees of a governmental subdivision who have not reached the age of 
18.27 	23 and are enrolled on a full-time basis to attend or are attending classes on a full-time 
18.28 	basis at an accredited school, college, or university in an undergraduate, graduate, or 
18.29 	professional-technical program, or a public or charter high school;
18.30 	(9) resident physicians, medical interns, and pharmacist residents and pharmacist 
18.31 	interns who are serving in a degree or residency program in public hospitals or clinics;
18.32 	(10) students who are serving in an internship or residency program sponsored 
18.33 	by an accredited educational institution;
18.34 	(11) persons who hold a part-time adult supplementary technical college license who 
18.35 	render part-time teaching service in a technical college;
19.1 	(12) except for employees of Hennepin County or Hennepin Healthcare System, 
19.2 	Inc., foreign citizens working for a governmental subdivision with a work permit of less 
19.3 	than three years, or an H-1b visa valid for less than three years of employment. Upon 
19.4 	notice to the association that the work permit or visa extends beyond the three-year period, 
19.5 	the foreign citizens must be reported for membership from the date of the extension;
19.6 	(13) public hospital employees who elected not to participate as members of the 
19.7 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
19.8 	1, 1988;
19.9 	(14) except as provided in section 353.86, volunteer ambulance service personnel, 
19.10 	as defined in subdivision 35, but persons who serve as volunteer ambulance service 
19.11 	personnel may still qualify as public employees under subdivision 2 and may be members 
19.12 	of the Public Employees Retirement Association and participants in the public employees 
19.13 	retirement fund or the public employees police and fire fund, whichever applies, on the 
19.14 	basis of compensation received from public employment service other than service as 
19.15 	volunteer ambulance service personnel;
19.16 	(15) except as provided in section 353.87, volunteer firefighters, as defined in 
19.17 	subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties; 
19.18 	provided that a person who is a volunteer firefighter may still qualify as a public 
19.19 	employee under subdivision 2 and may be a member of the Public Employees Retirement 
19.20 	Association and a participant in the public employees retirement fund or the public 
19.21 	employees police and fire fund, whichever applies, on the basis of compensation received 
19.22 	from public employment activities other than those as a volunteer firefighter;
19.23 	(16) pipefitters and associated trades personnel employed by Independent School 
19.24 	District No. 625, St. Paul, with coverage under a collective bargaining agreement by the 
19.25 	pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, 
19.26 	if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 
19.27 	241, article 2, section 12;
19.28 	(17) electrical workers, plumbers, carpenters, and associated trades personnel 
19.29 	employed by Independent School District No. 625, St. Paul, or the city of St. Paul, 
19.30 	who have retirement coverage under a collective bargaining agreement by the Electrical 
19.31 	Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, 
19.32 	or the Carpenters Local 87 pension plan who were either first employed after May 1, 
19.33 	2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000, 
19.34 	chapter 461, article 7, section 5;
19.35 	(18) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, 
19.36 	painters, allied tradesworkers, and plasterers employed by the city of St. Paul or 
20.1 	Independent School District No. 625, St. Paul, with coverage under a collective 
20.2 	bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, 
20.3 	the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 
20.4 	pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities 
20.5 	Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if 
20.6 	first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special 
20.7 	Session chapter 10, article 10, section 6;
20.8 	(19) plumbers employed by the Metropolitan Airports Commission, with coverage 
20.9 	under a collective bargaining agreement by the Plumbers Local 34 pension plan, who either 
20.10 	were first employed after May 1, 2001, or if first employed before May 2, 2001, elected to 
20.11 	be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;
20.12 	(20) employees who are hired after June 30, 2002, to fill seasonal positions under 
20.13 	subdivision 12b which are limited in duration by the employer to 185 consecutive calendar 
20.14 	days or less in each year of employment with the governmental subdivision;
20.15 	(21) persons who are provided supported employment or work-study positions 
20.16 	by a governmental subdivision and who participate in an employment or industries 
20.17 	program maintained for the benefit of these persons where the governmental subdivision 
20.18 	limits the position's duration to three years or less, including persons participating in a 
20.19 	federal or state subsidized on-the-job training, work experience, senior citizen, youth, or 
20.20 	unemployment relief program where the training or work experience is not provided as a 
20.21 	part of, or for, future permanent public employment;
20.22 	(22) independent contractors and the employees of independent contractors; and
20.23 	(23) reemployed annuitants of the association during the course of that 
20.24 	reemployment.

20.25 	Sec. 13. Minnesota Statutes 2008, section 353.01, subdivision 10, is amended to read:
20.26 		Subd. 10.Salary. (a) Subject to the limitations of section 356.611, "salary" means:
20.27 	(1) the periodic compensation of a public employee, before deductions for deferred 
20.28 	compensation, supplemental retirement plans, or other voluntary salary reduction 
20.29 	programs, and also means "wages" and includes net income from fees;
20.30 	(2) for a public employee who is covered by a supplemental retirement plan under 
20.31 	section 356.24, subdivision 1, clause (8), (9), or (10), which require all plan contributions 
20.32 	be made by the employer, the contribution to the applicable supplemental retirement plan 
20.33 	when an agreement between the parties establishes that the contribution will either result 
20.34 	in a mandatory reduction of employees' wages through payroll withholdings, or be made 
20.35 	in lieu of an amount that would otherwise be paid as wages; and
21.1 	(3) for a public employee who has prior service covered by a local police or 
21.2 	firefighters relief association that has consolidated with the Public Employees Retirement 
21.3 	Association or to which section 353.665 applies and who has elected coverage either 
21.4 	under the public employees police and fire fund benefit plan under section 353A.08 
21.5 	following the consolidation or under section 353.665, subdivision 4, the rate of salary 
21.6 	upon which member contributions to the special fund of the relief association were made 
21.7 	prior to the effective date of the consolidation as specified by law and by bylaw provisions 
21.8 	governing the relief association on the date of the initiation of the consolidation procedure 
21.9 	and the actual periodic compensation of the public employee after the effective date of 
21.10 	consolidation.; and
21.11 	(4) for a public employee who has prior service covered by the Minneapolis 
21.12 	Employees Retirement Fund under Minnesota Statutes 2008, chapter 422A, the amount 
21.13 	or amounts credited as salary as reflected in the records of the Minneapolis Employees 
21.14 	Retirement Fund for salary received before July 1, 2010.
21.15 	(b) Salary does not mean:
21.16 	(1) the fees paid to district court reporters, unused annual vacation or sick leave 
21.17 	payments, in lump-sum or periodic payments, severance payments, reimbursement of 
21.18 	expenses, lump-sum settlements not attached to a specific earnings period, or workers' 
21.19 	compensation payments;
21.20 	(2) employer-paid amounts used by an employee toward the cost of insurance 
21.21 	coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health 
21.22 	care expense accounts, day care expenses, or any payments in lieu of any employer-paid 
21.23 	group insurance coverage, including the difference between single and family rates that 
21.24 	may be paid to a member with single coverage and certain amounts determined by the 
21.25 	executive director to be ineligible;
21.26 	(3) the amount equal to that which the employing governmental subdivision would 
21.27 	otherwise pay toward single or family insurance coverage for a covered employee when, 
21.28 	through a contract or agreement with some but not all employees, the employer:
21.29 	(i) discontinues, or for new hires does not provide, payment toward the cost of the 
21.30 	employee's selected insurance coverages under a group plan offered by the employer;
21.31 	(ii) makes the employee solely responsible for all contributions toward the cost of 
21.32 	the employee's selected insurance coverages under a group plan offered by the employer, 
21.33 	including any amount the employer makes toward other employees' selected insurance 
21.34 	coverages under a group plan offered by the employer; and
21.35 	(iii) provides increased salary rates for employees who do not have any 
21.36 	employer-paid group insurance coverages;
22.1 	(4) except as provided in section 353.86 or 353.87, compensation of any kind paid to 
22.2 	volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision 
22.3 	35 or 36; 
22.4 	(5) the amount of compensation that exceeds the limitation provided in section 
22.5 	356.611; and
22.6 	(6) amounts paid by a federal or state grant for which the grant specifically 
22.7 	prohibits grant proceeds from being used to make pension plan contributions, unless the 
22.8 	contributions to the plan are made from sources other than the federal or state grant.
22.9 	(c) Amounts provided to an employee by the employer through a grievance 
22.10 	proceeding or a legal settlement are salary only if the settlement is reviewed by the 
22.11 	executive director and the amounts are determined by the executive director to be 
22.12 	consistent with paragraph (a) and prior determinations.

22.13 	Sec. 14. Minnesota Statutes 2008, section 353.01, subdivision 16, is amended to read:
22.14 		Subd. 16.Allowable service; limits and computation. (a) "Allowable service" 
22.15 	means:
22.16 	(1) service during years of actual membership in the course of which employee 
22.17 	contributions were made,;
22.18 	(2) service during periods covered by payments in lieu of salary deductions under 
22.19 	section 353.35; 
22.20 	(2)(3) service in years during which the public employee was not a member but for 
22.21 	which the member later elected, while a member, to obtain credit by making payments to 
22.22 	the fund as permitted by any law then in effect;
22.23 	(3)(4) a period of authorized leave of absence with pay from which deductions for 
22.24 	employee contributions are made, deposited, and credited to the fund;
22.25 	(4)(5) a period of authorized personal, parental, or medical leave of absence without 
22.26 	pay, including a leave of absence covered under the federal Family Medical Leave Act, 
22.27 	that does not exceed one year, and for which a member obtained service credit for each 
22.28 	month in the leave period by payment under section 353.0161 to the fund made in place of 
22.29 	salary deductions. An employee must return to public service and render a minimum of 
22.30 	three months of allowable service in order to be eligible to make payment under section 
22.31 	353.0161 for a subsequent authorized leave of absence without pay. Upon payment, the 
22.32 	employee must be granted allowable service credit for the purchased period; 
22.33 	(5)(6) a periodic, repetitive leave that is offered to all employees of a governmental 
22.34 	subdivision. The leave program may not exceed 208 hours per annual normal work 
22.35 	cycle as certified to the association by the employer. A participating member obtains 
23.1 	service credit by making employee contributions in an amount or amounts based on the 
23.2 	member's average salary that would have been paid if the leave had not been taken. The 
23.3 	employer shall pay the employer and additional employer contributions on behalf of the 
23.4 	participating member. The employee and the employer are responsible to pay interest on 
23.5 	their respective shares at the rate of 8.5 percent a year, compounded annually, from the 
23.6 	end of the normal cycle until full payment is made. An employer shall also make the 
23.7 	employer and additional employer contributions, plus 8.5 percent interest, compounded 
23.8 	annually, on behalf of an employee who makes employee contributions but terminates 
23.9 	public service. The employee contributions must be made within one year after the end of 
23.10 	the annual normal working cycle or within 20 days after termination of public service, 
23.11 	whichever is sooner. The executive director shall prescribe the manner and forms to be 
23.12 	used by a governmental subdivision in administering a periodic, repetitive leave. Upon 
23.13 	payment, the member must be granted allowable service credit for the purchased period;
23.14 	(6)(7) an authorized temporary or seasonal layoff under subdivision 12, limited 
23.15 	to three months allowable service per authorized temporary or seasonal layoff in one 
23.16 	calendar year. An employee who has received the maximum service credit allowed for an 
23.17 	authorized temporary or seasonal layoff must return to public service and must obtain a 
23.18 	minimum of three months of allowable service subsequent to the layoff in order to receive 
23.19 	allowable service for a subsequent authorized temporary or seasonal layoff; or
23.20 	(7)(8) a period during which a member is absent from employment by a 
23.21 	governmental subdivision by reason of service in the uniformed services, as defined in 
23.22 	United States Code, title 38, section 4303(13), if the member returns to public service 
23.23 	upon discharge from service in the uniformed service within the time frames required 
23.24 	under United States Code, title 38, section 4312(e), provided that the member did not 
23.25 	separate from uniformed service with a dishonorable or bad conduct discharge or under 
23.26 	other than honorable conditions. The service is credited if the member pays into the fund 
23.27 	equivalent employee contributions based upon the contribution rate or rates in effect at 
23.28 	the time that the uniformed service was performed multiplied by the full and fractional 
23.29 	years being purchased and applied to the annual salary rate. The annual salary rate is the 
23.30 	average annual salary during the purchase period that the member would have received 
23.31 	if the member had continued to be employed in covered employment rather than to 
23.32 	provide uniformed service, or, if the determination of that rate is not reasonably certain, 
23.33 	the annual salary rate is the member's average salary rate during the 12-month period of 
23.34 	covered employment rendered immediately preceding the period of the uniformed service. 
23.35 	Payment of the member equivalent contributions must be made during a period that begins 
23.36 	with the date on which the individual returns to public employment and that is three times 
24.1 	the length of the military leave period, or within five years of the date of discharge from 
24.2 	the military service, whichever is less. If the determined payment period is less than 
24.3 	one year, the contributions required under this clause to receive service credit may be 
24.4 	made within one year of the discharge date. Payment may not be accepted following 20 
24.5 	days after termination of public service under subdivision 11a. If the member equivalent 
24.6 	contributions provided for in this clause are not paid in full, the member's allowable 
24.7 	service credit must be prorated by multiplying the full and fractional number of years of 
24.8 	uniformed service eligible for purchase by the ratio obtained by dividing the total member 
24.9 	contributions received by the total member contributions otherwise required under this 
24.10 	clause. The equivalent employer contribution, and, if applicable, the equivalent additional 
24.11 	employer contribution must be paid by the governmental subdivision employing the 
24.12 	member if the member makes the equivalent employee contributions. The employer 
24.13 	payments must be made from funds available to the employing unit, using the employer 
24.14 	and additional employer contribution rate or rates in effect at the time that the uniformed 
24.15 	service was performed, applied to the same annual salary rate or rates used to compute the 
24.16 	equivalent member contribution. The governmental subdivision involved may appropriate 
24.17 	money for those payments. The amount of service credit obtainable under this section may 
24.18 	not exceed five years unless a longer purchase period is required under United States Code, 
24.19 	title 38, section 4312. The employing unit shall pay interest on all equivalent member and 
24.20 	employer contribution amounts payable under this clause. Interest must be computed at 
24.21 	a rate of 8.5 percent compounded annually from the end of each fiscal year of the leave 
24.22 	or the break in service to the end of the month in which the payment is received. Upon 
24.23 	payment, the employee must be granted allowable service credit for the purchased period.
24.24 	(b) For calculating benefits under sections 353.30, 353.31, 353.32, and 353.33 for 
24.25 	state officers and employees displaced by the Community Corrections Act, chapter 401, 
24.26 	and transferred into county service under section 401.04, "allowable service" means the 
24.27 	combined years of allowable service as defined in paragraph (a), clauses (1) to (6) (7), and 
24.28 	section 352.01, subdivision 11. 
24.29 	(c) For a public employee who has prior service covered by a local police or 
24.30 	firefighters relief association that has consolidated with the Public Employees Retirement 
24.31 	Association or to which section 353.665 applies, and who has elected the type of benefit 
24.32 	coverage provided by the public employees police and fire fund either under section 
24.33 	353A.08 following the consolidation or under section 353.665, subdivision 4, "applicable 
24.34 	service" is a period of service credited by the local police or firefighters relief association 
24.35 	as of the effective date of the consolidation based on law and on bylaw provisions 
24.36 	governing the relief association on the date of the initiation of the consolidation procedure. 
25.1 	(d) No member may receive more than 12 months of allowable service credit 
25.2 	in a year either for vesting purposes or for benefit calculation purposes. For a member 
25.3 	who was previously a member of the former Minneapolis Employees Retirement Fund, 
25.4 	"allowable service" is service credited by the prior Minneapolis Employees Retirement 
25.5 	Fund on or before June 30, 2010, as reflected in the transferred records of that retirement 
25.6 	plan, and service credited under paragraph (a), clause (1), (4), (5), or (8), for the period 
25.7 	after the effective date of consolidation under section 353.47, subdivision 7.
25.8 	(e) MS 2002 [Expired]
25.9 	(f) No member may receive more than 12 months of allowable service credit in a 
25.10 	year either for vesting purposes or for benefit calculation purposes.

25.11 	Sec. 15. Minnesota Statutes 2008, section 353.0161, subdivision 1, is amended to read:
25.12 		Subdivision 1.Application. This section applies to employees covered by any plan 
25.13 	specified in this chapter or chapter 353E for any period of authorized leave of absence 
25.14 	specified in section 353.01, subdivision 16, paragraph (a), clause (4) (5), for which the 
25.15 	employee obtains credit for allowable service by making payment as specified in this 
25.16 	section to the applicable fund.

25.17 	Sec. 16. Minnesota Statutes 2008, section 353.026, is amended to read:
25.18 	353.026 COVERAGE FOR CERTAIN MUNICIPAL AND SCHOOL 
25.19 	DISTRICT EMPLOYEES.
25.20 	Any person who was employed by the city of Minneapolis, Special School District 
25.21 	No. 1, or public corporation as defined in Minnesota Statutes 2008, section 422A.01, 
25.22 	subdivision 9, on or after July 1, 1978, and before July 1, 1979, and who was excluded 
25.23 	from retirement coverage by the coordinated program of the Minneapolis municipal 
25.24 	employees retirement fund under Minnesota Statutes 2008, section 422A.09, subdivision 
25.25 	3, is entitled to retirement coverage by the general employees retirement plan of the Public 
25.26 	Employees Retirement Association unless specifically excluded under section 353.01, 
25.27 	subdivision 2b, from and after May 19, 1981.

25.28 	Sec. 17. Minnesota Statutes 2008, section 353.27, subdivision 2, is amended to read:
25.29 		Subd. 2.Employee contribution. (a) The employee contribution to the general 
25.30 	employees retirement plan is the following applicable percentage of the total salary 
25.31 	amount for a "basic member," other than a member who previously was a member of the 
25.32 	former Minneapolis Employees Retirement Fund, and for a "coordinated member":

26.1			Basic Program
		Coordinated Program
	
26.2	Effective before January 1, 2006
		9.10
		5.10
	
26.3	Effective January 1, 2006
		9.10
		5.50
	
26.4	Effective January 1, 2007
		9.10
		5.75
	
26.5
26.6
26.7	Effective January 1, 2008
		9.10
		6.00 plus any contribution 
rate adjustment under 
subdivision 3b
	
26.8 	(b) The employee contribution to the general employees retirement plan is 9.60 
26.9 	percent of the total salary for a basic member who previously was a member of the former 
26.10 	Minneapolis Employees Retirement Fund.
26.11 	(c) These contributions must be made by deduction from salary as defined in section 
26.12 	353.01, subdivision 10, in the manner provided in subdivision 4. If any portion of a 
26.13 	member's salary is paid from other than public funds, the member's employee contribution 
26.14 	must be based on the total salary received by the member from all sources.

26.15 	Sec. 18. Minnesota Statutes 2008, section 353.27, subdivision 3, is amended to read:
26.16 		Subd. 3.Employer contribution. (a) The employer contribution to the general 
26.17 	employees retirement plan with respect to all members other than employees who were 
26.18 	members of the Minneapolis Employees Retirement Fund on the day before the effective 
26.19 	date of the consolidation of the Minneapolis Employees Retirement Fund with the general 
26.20 	employees retirement plan under section 353.47, subdivision 7, is the following applicable 
26.21 	percentage of the total salary amount for "basic members" and for "coordinated members":

26.22			Basic Program
		Coordinated Program
	
26.23	Effective before January 1, 2006
		9.10
		5.10
	
26.24	Effective January 1, 2006
		9.10
		5.50
	
26.25	Effective January 1, 2007
		9.10
		5.75
	
26.26
26.27
26.28	Effective January 1, 2008
		9.10
		6.00 plus any contribution 
rate adjustment under 
subdivision 3b
	
26.29 	(b) The employee contribution of an employer of an employee as defined in 
26.30 	Minnesota Statutes 2008, section 422A.01, subdivision 11, with respect to members who 
26.31 	were members of the Minneapolis Employees Retirement Fund on June 29, 2010, is 9.60 
26.32 	percent of the total salary amount of those members, payable each payroll period.
26.33 	(c) This contribution must be made from funds available to the employing 
26.34 	subdivision by the means and in the manner provided in section 353.28.

26.35 	Sec. 19. Minnesota Statutes 2008, section 353.27, subdivision 3a, is amended to read:
27.1 		Subd. 3a.Additional employer contribution. (a) An additional employer 
27.2 	contribution to the general employees retirement plan of any governmental subdivision 
27.3 	must be made in an amount equal to the following applicable percentage of the total salary 
27.4 	amount for "basic members" and for "coordinated members":

27.5			Basic Program
		Coordinated Program
	
27.6	Effective before January 1, 2006
		2.68
		.43
	
27.7	Effective January 1, 2006
		2.68
		.50
	
27.8	Effective January 1, 2009
		2.68
		.75
	
27.9	Effective January 1, 2010
		2.68
		1.00
	
27.10 	These contributions must be made from funds available to the employing subdivision 
27.11 	by the means and in the manner provided in section 353.28.
27.12 	(b) The coordinated program contribution rates set forth in paragraph (a) effective 
27.13 	for January 1, 2009, or January 1, 2010, must not be implemented if, following receipt of 
27.14 	the July 1, 2008, or July 1, 2009, annual actuarial valuation reports under section 356.215, 
27.15 	respectively, the actuarially required contributions are equal to or less than the total rates 
27.16 	under this section in effect as of January 1, 2008.
27.17 	(c) This subdivision is repealed once the actuarial value of the assets of the plan 
27.18 	equal or exceed the actuarial accrued liability of the plan as determined by the actuary 
27.19 	retained under sections 356.214 and 356.215. The repeal is effective on the first day of the 
27.20 	first full pay period occurring after March 31 of the calendar year following the issuance 
27.21 	of the actuarial valuation upon which the repeal is based.

27.22 	Sec. 20. Minnesota Statutes 2008, section 353.27, subdivision 3b, is amended to read:
27.23 		Subd. 3b.Change in employee and employer contributions in certain instances.
 27.24 	(a) For purposes of this section, a contribution sufficiency exists if the total of the 
27.25 	employee contribution rates under subdivision 2, the employer contribution rates under 
27.26 	subdivision 3, the additional employer contribution rates under subdivision 3a, the 
27.27 	state aid with respect to the former Minneapolis Employees Retirement Fund under 
27.28 	section 422A.101, subdivision 3, expressed as a percentage of covered payroll, the 
27.29 	special employer contribution rate under subdivision 3c, and any additional contribution 
27.30 	previously imposed under this subdivision exceeds the total of the normal cost rate, 
27.31 	the administrative expenses expense rate, and the amortization contribution rate of the 
27.32 	retirement plan as reported in the most recent actuarial valuation of the retirement plan 
27.33 	prepared by the actuary retained under section 356.214 and prepared under section 
27.34 	356.215 and the standards for actuarial work of the Legislative Commission on Pensions 
27.35 	and Retirement. For purposes of this section, a contribution deficiency exists if the total of 
27.36 	the rates of the employee contributions under subdivision 2, the employer contributions 
28.1 	under subdivision 3, the additional employer contribution under subdivision 3a, the state 
28.2 	aid with respect to the former Minneapolis Employees Retirement Fund under section 
28.3 	422A.101, subdivision 3, expressed as a percentage of covered payroll, the special 
28.4 	employer contribution under subdivision 3c, and any additional contribution previously 
28.5 	imposed under this subdivision is less than the total of the normal cost, the administrative 
28.6 	expenses, and the amortization contribution of the retirement plan as reported in the most 
28.7 	recent actuarial valuation of the retirement plan prepared by the actuary retained under 
28.8 	section 356.214 and prepared under section 356.215 and the standards for actuarial work 
28.9 	of the Legislative Commission on Pensions and Retirement.
28.10 	(b) Employee and employer contributions under subdivisions 2 and 3 must be 
28.11 	adjusted:
28.12 	(1) if, after July 1, 2010, the regular actuarial valuations of the general employees 
28.13 	retirement plan of the Public Employees Retirement Association under section 356.215
28.14 	indicate that there is a contribution sufficiency under paragraph (a) equal to or greater 
28.15 	than 0.5 percent of covered payroll for two consecutive years, the coordinated program 
28.16 	employee and employer contribution rates must be decreased as determined under 
28.17 	paragraph (c) to a level such that the sufficiency equals no more than 0.25 percent of 
28.18 	covered payroll based on the most recent actuarial valuation; or
28.19 	(2) if, after July 1, 2010, the regular actuarial valuations of the general employees 
28.20 	retirement plan of the Public Employees Retirement Association under section 356.215
28.21 	indicate that there is a deficiency equal to or greater than 0.5 percent of covered payroll for 
28.22 	two consecutive years, the coordinated program employee and employer contribution rates 
28.23 	must be increased as determined under paragraph (c) to a level such that no deficiency 
28.24 	exists based on the most recent actuarial valuation.
28.25 	(c) The contribution rate increase or decrease must be determined by the executive 
28.26 	director of the Public Employees Retirement Association, must be reported to the chair 
28.27 	and the executive director of the Legislative Commission on Pensions and Retirement 
28.28 	on or before the next February 1, and, if the Legislative Commission on Pensions and 
28.29 	Retirement does not recommend against the rate change or does not recommend a 
28.30 	modification in the rate change, is effective on the next July 1 following the determination 
28.31 	by the executive director that a contribution deficiency or sufficiency has existed for 
28.32 	two consecutive fiscal years based on the most recent actuarial valuations under section 
28.33 	356.215. If the actuarially required contribution exceeds or is less than the total support 
28.34 	provided by the combined employee and employer contribution rates by more than 0.5 
28.35 	percent of covered payroll, the coordinated program employee and employer contribution 
29.1 	rates must be adjusted incrementally over one or more years to a level such that there 
29.2 	remains a contribution sufficiency of no more than 0.25 percent of covered payroll.
29.3 	(d) No incremental adjustment may exceed 0.25 percent for either the coordinated 
29.4 	program employee and employer contribution rates per year in which any adjustment is 
29.5 	implemented. A contribution rate adjustment under this subdivision must not be made 
29.6 	until at least two years have passed since fully implementing a previous adjustment under 
29.7 	this subdivision.

29.8 	Sec. 21. Minnesota Statutes 2008, section 353.27, is amended by adding a subdivision 
29.9 	to read:
29.10 		Subd. 3c.Special former MERF employer contribution. In addition to the 
29.11 	employer contribution under subdivision 3, paragraph (b), an employer of an employee 
29.12 	as defined in Minnesota Statutes 2008, section 422A.01, subdivision 11, shall pay its 
29.13 	proportional share of a total special employer contribution of $......., payable annually until 
29.14 	all of the employer's employees who were former Minneapolis Employees Retirement 
29.15 	Fund members retire, or June 30, 2020, whichever occurs earlier. The proportional share 
29.16 	must be determined by the executive director based on the relationship of the total salaries 
29.17 	paid by the employing unit to former members of the former Minneapolis Employees 
29.18 	Retirement Fund to the total salaries paid by all employing units to former Minneapolis 
29.19 	Employees Retirement Fund members as of the prior June 30.

29.20 	Sec. 22. Minnesota Statutes 2008, section 353.29, subdivision 1, is amended to read:
29.21 		Subdivision 1.Age and allowable service requirements. (a) Upon termination 
29.22 	of membership, a person other than an employee who was a member of the former 
29.23 	Minneapolis Employees Retirement Fund on June 29, 2010, who has attained normal 
29.24 	retirement age and who received credit for not less than three years of allowable service is 
29.25 	entitled upon application to a retirement annuity under subdivision 3.
29.26 	(b) Upon termination of membership, a person who was a member of the former 
29.27 	Minneapolis Employees Retirement Fund on June 29, 2010, who has attained the age of 
29.28 	at least 60 years and has credit for not less than ten years of allowable service or who 
29.29 	has credit for at least 30 years of allowable service is entitled, upon application, to a 
29.30 	retirement annuity under subdivision 3a.
29.31 	(c) The retirement annuity is known as the "normal" retirement annuity.

29.32 	Sec. 23. Minnesota Statutes 2008, section 353.29, subdivision 3, is amended to read:
30.1 		Subd. 3.General retirement annuity formula. (a) This paragraph, in conjunction 
30.2 	with section 353.30, subdivisions 1a, 1b, and 1c, applies to any member under subdivision 
30.3 	1, paragraph (a), who first became a public employee or a member of a pension fund listed 
30.4 	in section 356.30, subdivision 3, before July 1, 1989, unless paragraph (b), in conjunction 
30.5 	with section 353.30, subdivision 5, produces a higher annuity amount, in which case 
30.6 	paragraph (b) will apply. The average salary as defined in section 353.01, subdivision 17a, 
30.7 	multiplied by the percent specified in section 356.315, subdivision 3, for each year of 
30.8 	allowable service for the first ten years and thereafter by the percent specified in section 
30.9 	356.315, subdivision 4, per year of allowable service and completed months less than a 
30.10 	full year for a basic member, and the percent specified in section 356.315, subdivision 
30.11 	1, for each year of allowable service for the first ten years and thereafter by the percent 
30.12 	specified in section 356.315, subdivision 2, per year of allowable service and completed 
30.13 	months less than a full year for a coordinated member shall determinedetermines the 
30.14 	amount of the normal retirement annuity.
30.15 	(b) This paragraph applies to a member under subdivision 1, paragraph (a), who has 
30.16 	become at least 55 years old and first became a public employee after June 30, 1989, and 
30.17 	to any other member whose annuity amount, when calculated under this paragraph and 
30.18 	in conjunction with section 353.30, subdivision 5, is higher than it is when calculated 
30.19 	under paragraph (a), in conjunction with section 353.30, subdivisions 1a, 1b, and 1c. 
30.20 	The average salary, as defined in section 353.01, subdivision 17a, multiplied by the 
30.21 	percent specified in section 356.315, subdivision 4, for each year of allowable service and 
30.22 	completed months less than a full year for a basic member and the percent specified in 
30.23 	section 356.315, subdivision 2, per year of allowable service and completed months 
30.24 	less than a full year for a coordinated member, shall determinedetermines the amount 
30.25 	of the normal retirement annuity.

30.26 	Sec. 24. Minnesota Statutes 2008, section 353.29, is amended by adding a subdivision 
30.27 	to read:
30.28 		Subd. 3a.Alternative retirement annuity formula in certain cases. A member 
30.29 	under subdivision 1, paragraph (b), is entitled to a normal retirement annuity in an amount 
30.30 	equal to 2.0 percent of average salary per year of allowable service, multiplied by the 
30.31 	number of years of allowable service credited to the member for each of the first ten years 
30.32 	of allowable service and 2.5 percent of average salary per year of allowable service, 
30.33 	multiplied by the number of years of allowable service in excess of ten years credited to 
30.34 	the member for each of the first ten years of allowable service and 2.5 percent of average 
30.35 	salary per year of allowable service, multiplied by the number of years of allowable 
31.1 	service in excess of ten years credited to the member, and adjusted in amount to have the 
31.2 	same actuarial present value as the annuity would have had if eligible for an automatic 
31.3 	annual postretirement adjustment under Minnesota Statutes 2008, section 422A.06, 
31.4 	subdivision 8, subject to a 3.5 percent maximum annual postretirement adjustment rather 
31.5 	than the postretirement adjustment under section 11A.181, subdivision 3.

31.6 	Sec. 25. Minnesota Statutes 2008, section 353.30, subdivision 5, is amended to read:
31.7 		Subd. 5.Actuarial reduction for early retirement. (a) Except as provided in 
31.8 	paragraph (b), this subdivision applies to a member who has become at least 55 years old 
31.9 	and first became a public employee after June 30, 1989, and to any other member who 
31.10 	has become at least 55 years old and whose annuity is higher when calculated under 
31.11 	section 353.29, subdivision 3, paragraph (b), in conjunction with this subdivision than 
31.12 	when calculated under section 353.29, subdivision 3, paragraph (a), in conjunction with 
31.13 	subdivision 1, 1a, 1b, or 1c. An employee who retires before normal retirement age shall 
31.14 	be paid the retirement annuity provided in section 353.29, subdivision 3, paragraph (b), 
31.15 	reduced so that the reduced annuity is the actuarial equivalent of the annuity that would be 
31.16 	payable to the employee if the employee deferred receipt of the annuity and the annuity 
31.17 	amount were augmented at an annual rate of three percent compounded annually from the 
31.18 	day the annuity begins to accrue until the normal retirement age if the employee became 
31.19 	an employee before July 1, 2006, and at 2.5 percent compounded annually from the day 
31.20 	the annuity begins to accrue until the normal retirement age if the employee initially 
31.21 	becomes an employee after June 30, 2006. 
31.22 	(b) A member under section 353.29, subdivision 1, paragraph (b), is not eligible 
31.23 	to receive a retirement annuity earlier than age 60 unless the person has 30 years of 
31.24 	allowable service and, if the person has 30 years of allowable service, no reduction for 
31.25 	early retirement is applicable.

31.26 	Sec. 26. Minnesota Statutes 2008, section 353.31, subdivision 1, is amended to read:
31.27 		Subdivision 1.Benefits for surviving spouse and dependent children; before 
31.28 	retirement. (a) Upon the death of a basic member before retirement or upon the death of a 
31.29 	basic member who was disabled and receiving disability benefits under section  353.33
31.30 	at the time of death who has had at least 18 months of credited allowable service, who 
31.31 	in either case was not a member of the former Minneapolis Employees Retirement Fund 
31.32 	on June 29, 2010, the surviving spouse and dependent child or children of the member, 
31.33 	as defined in section  353.01, subdivisions 15 and 20, are entitled to receive the monthly 
31.34 	benefit provided below: 

32.1
32.2
32.3
32.4		(a)(1) Surviving spouse
	50 percent of the member's monthly average 
salary in effect over the last full six months 
of allowable service preceding the month in 
which death occurred
	
32.5
32.6
32.7
32.8		(b)(2) Each dependent child
	10 percent of the member's monthly average 
salary in effect over the last full six months 
of allowable service preceding the month in 
which death occurred
	
32.9 	Notwithstanding the definition of surviving spouse under section  353.01, subdivision 20, 
32.10 	a former spouse of the member, if any, is entitled to a portion of the monthly surviving 
32.11 	spouse benefit if stipulated under the terms of a marriage dissolution decree that is filed 
32.12 	with the association. If there is no surviving spouse or child or children, a former spouse 
32.13 	may be entitled to a lump-sum refund payment under section  353.32, subdivision 1, if 
32.14 	provided for in a marriage dissolution decree but not a monthly surviving spouse benefit 
32.15 	even if required by the decree. 
32.16 	(b) Upon the death of a member who was a member of the former Minneapolis 
32.17 	Employees Retirement Fund on June 29, 2010, the surviving spouse or surviving child or 
32.18 	children are entitled to survivor benefits under this paragraph. With at least 18 months of 
32.19 	allowable service and less than 20 years of allowable service by the deceased member, 
32.20 	the survivor benefit is 30 percent of the member's average salary for the six months of 
32.21 	allowable service preceding the member's death for the surviving spouse and ten percent 
32.22 	of the member's average salary for the six months of allowable service preceding the 
32.23 	member's death for a surviving child, with a surviving family maximum of 50 percent 
32.24 	of the member's average salary for the six months of allowable service preceding the 
32.25 	member's death. With at least 20 years of allowable service by the deceased member, 
32.26 	the survivor benefit is an annuity that is the actuarial equivalent of a single life annuity 
32.27 	payable as of the date of death under section 353.29, subdivision 3a, without reference to 
32.28 	age or service vesting requirements, if the decedent was an active member, or increased 
32.29 	additionally by the applicable deferred annuities augmentation rate or rates for any deferral 
32.30 	period if the decedent was a deferred member, payable to the surviving spouse if there is 
32.31 	one, or to a dependent surviving child of the member if there is no surviving spouse. The 
32.32 	computed survivor benefit under this paragraph also must be adjusted to have the same 
32.33 	actuarial present value as the benefit would have had if eligible for an automatic annual 
32.34 	postretirement adjustment under Minnesota Statutes 2006, section 422A.06, subdivision 
32.35 	8, subject to a 3.5 percent maximum annual postretirement adjustment rather than the 
32.36 	postretirement adjustment under section 11A.181, subdivision 3.

32.37 	Sec. 27. Minnesota Statutes 2008, section 353.31, subdivision 1a, is amended to read:
33.1 		Subd. 1a.Maximum family benefit. (a) Payments for the benefit of a dependent 
33.2 	child or children, as defined in section  353.01, subdivision 15, must be made to the 
33.3 	surviving parent, or to the legal guardian of the child.
33.4 	(b) The maximum monthly benefit for a family receiving a benefit under subdivision 
33.5 	1, paragraph (a), must not exceed an amount equal to 70 percent of the member's specified 
33.6 	average monthly salary, and the minimum benefit for a family including a 100 percent 
33.7 	joint and survivor annuity under subdivision 1b, must not be less than 50 percent of the 
33.8 	basic member's specified average monthly salary. 

33.9 	Sec. 28. Minnesota Statutes 2008, section 353.32, subdivision 1a, is amended to read:
33.10 		Subd. 1a.Surviving spouse optional annuity. (a) This subdivision applies to 
33.11 	the surviving spouse of a person who was not a member of the former Minneapolis 
33.12 	Employees Retirement Fund on June 29, 2010.
33.13 	(b) If a member or former member who has credit for not less than three years of 
33.14 	allowable service and dies before the annuity or disability benefit begins to accrue under 
33.15 	section 353.29, subdivision 7, or 353.33, subdivision 2, notwithstanding any designation 
33.16 	of beneficiary to the contrary, the surviving spouse may elect to receive, instead of a refund 
33.17 	with interest under subdivision 1, or surviving spouse benefits otherwise payable under 
33.18 	section 353.31, an annuity equal to a 100 percent joint and survivor annuity computed 
33.19 	consistent with section 353.30, subdivision 1a, 1c, or 5, whichever is applicable. 
33.20 	(b)(c) If a member first became a public employee or a member of a pension fund 
33.21 	listed in section 356.30, subdivision 3, before July 1, 1989, and has credit for at least 30 
33.22 	years of allowable service on the date of death, the surviving spouse may elect to receive a 
33.23 	100 percent joint and survivor annuity computed using section 353.30, subdivision 1b, 
33.24 	except that the early retirement reduction under that provision will be applied from age 
33.25 	62 back to age 55 and one-half of the early retirement reduction from age 55 back to 
33.26 	the age payment begins. 
33.27 	(c)(d) If a member who was under age 55 and has credit for at least three years 
33.28 	of allowable service dies, but did not qualify for retirement on the date of death, the 
33.29 	surviving spouse may elect to receive a 100 percent joint and survivor annuity computed 
33.30 	using section 353.30, subdivision 1c or 5, as applicable, except that the early retirement 
33.31 	reduction specified in the applicable subdivision will be applied to age 55 and one-half of 
33.32 	the early retirement reduction from age 55 back to the age payment begins. 
33.33 	(d)(e) Notwithstanding the definition of surviving spouse in section 353.01, 
33.34 	subdivision 20, a former spouse of the member, if any, is entitled to a portion of the 
33.35 	monthly surviving spouse optional annuity if stipulated under the terms of a marriage 
34.1 	dissolution decree filed with the association. If there is no surviving spouse or child 
34.2 	or children, a former spouse may be entitled to a lump-sum refund payment under 
34.3 	subdivision 1, if provided for in a marriage dissolution decree, but not a monthly surviving 
34.4 	spouse optional annuity, despite the terms of a marriage dissolution decree filed with 
34.5 	the association. 
34.6 	(e)(f) The surviving spouse eligible for surviving spouse benefits under paragraph 
34.7 	(a) may apply for the annuity at any time after the date on which the deceased employee 
34.8 	would have attained the required age for retirement based on the employee's allowable 
34.9 	service. The surviving spouse eligible for surviving spouse benefits under paragraph (b)
34.10 	(c) or (c)(d) may apply for an annuity any time after the member's death. 
34.11 	(f)(g) Sections 353.34, subdivision 3, and 353.71, subdivision 2, apply to a deferred 
34.12 	annuity or surviving spouse benefit payable under this subdivision. 
34.13 	(g)(h) An amount equal to any excess of the accumulated contributions that were 
34.14 	credited to the account of the deceased employee over and above the total of the annuities 
34.15 	paid and payable to the surviving spouse must be paid to the surviving spouse's estate. 
34.16 	(h)(i) A member may specify in writing, with the signed consent of the spouse, that 
34.17 	this subdivision does not apply and that payment may be made only to the designated 
34.18 	beneficiary as otherwise provided by this chapter. The waiver of a surviving spouse 
34.19 	annuity under this section does not make a dependent child eligible for benefits under 
34.20 	subdivision 1c. 
34.21 	(i)(j) If the deceased member or former member first became a public employee or a 
34.22 	member of a public pension plan listed in section 356.30, subdivision 3, on or after July 1, 
34.23 	1989, a survivor annuity computed under paragraph (a)(b) or (c)(d) must be computed as 
34.24 	specified in section 353.30, subdivision 5, except for the revised early retirement reduction 
34.25 	specified in paragraph (c) (d), if paragraph (c)(d) is the applicable provision.
34.26 	(j)(k) For any survivor annuity determined under this subdivision, the payment is to 
34.27 	be based on the total allowable service that the member had accrued as of the date of death 
34.28 	and the age of the member and surviving spouse on that date.

34.29 	Sec. 29. Minnesota Statutes 2008, section 353.33, subdivision 1, is amended to read:
34.30 		Subdivision 1.Age, service, and salary requirements. (a) A coordinated member 
34.31 	who has at least three years of allowable service and becomes totally and permanently 
34.32 	disabled before normal retirement age, and a basic member other than a basic member 
34.33 	covered by paragraph (b) who has at least three years of allowable service and who 
34.34 	becomes totally and permanently disabled, upon application as defined under section 
34.35 	353.031, is entitled to a disability benefit in an amount determined under subdivision 3. 
35.1 	If the disabled person's public service has terminated at any time, at least two of the 
35.2 	required three years of allowable service must have been rendered after last becoming 
35.3 	an active member. 
35.4 	(b) A basic member who was a member of the former Minneapolis Employees 
35.5 	Retirement Fund on June 29, 2010, and who was disabled as a result of injury or illness 
35.6 	connected with the performance of employment duties with any allowable service or 
35.7 	who was disabled not as a result of injury or illness connected with the performance of 
35.8 	employment duties with at least five years of allowable service is entitled to a disability 
35.9 	benefit.

35.10 	Sec. 30. Minnesota Statutes 2008, section 353.33, subdivision 3, is amended to read:
35.11 		Subd. 3.Computation of benefits. (a) ThisExcept as provided in paragraph (b), 
35.12 	the disability benefit is an amount equal to the normal annuity payable to a member who 
35.13 	has reached normal retirement age with the same number of years of allowable service 
35.14 	and the same average salary, as provided in section 353.01, subdivision 17a, and section 
35.15 	353.29, subdivision 3.
35.16 	(b) For a disabled member under subdivision 1, paragraph (b), the disability benefit 
35.17 	is 50 percent of average salary or an amount equal to 2.0 percent of average salary per 
35.18 	year of allowable service for the first ten years of allowable service and to 2.5 percent of 
35.19 	average salary per year of allowable service in excess of the first ten years of allowable 
35.20 	service, including assumed service between the date of disability and the person's earliest 
35.21 	determinable normal retirement age. The computed disability benefit under this paragraph 
35.22 	also must be adjusted to have the same actuarial present value as the benefit would 
35.23 	have if eligible for an annual postretirement adjustment under Minnesota Statutes 2006, 
35.24 	section 422A.06, subdivision 8, subject to a 3.5 percent maximum annual postretirement 
35.25 	adjustment rather than the postretirement adjustment under section 11A.181, subdivision 3.
35.26 	(c) A basic member shallunder paragraph (a) is entitled to receive a supplementary 
35.27 	monthly benefit of $25 to age 65 or the five-year anniversary of the effective date of 
35.28 	the disability benefit, whichever is later.
35.29 	(c)(d) If the disability benefits under this subdivisionparagraphs (a) and (c) exceed 
35.30 	the average salary as defined in section 353.01, subdivision 17a, the disability benefits 
35.31 	must be reduced to an amount equal to the average salary.

35.32 	Sec. 31. Minnesota Statutes 2008, section 353.33, subdivision 12, is amended to read:
35.33 		Subd. 12.Basic disability survivor benefits. If a basic member who is receiving a 
35.34 	disability benefit under subdivision 3, paragraph (a):
36.1 	(1) dies before attaining age 65 or within five years of the effective date of the 
36.2 	disability, whichever is later, the surviving spouse is entitled to receive a survivor benefit 
36.3 	under section 353.31, unless the surviving spouse elected to receive a refund under section 
36.4 	353.32, subdivision 1;
36.5 	(2) is living at age 65 or five years after the effective date of the disability, whichever 
36.6 	is later, the basic member may continue to receive a normal disability benefit, or elect a 
36.7 	joint and survivor optional annuity under section 353.31, subdivision 1b. The election of 
36.8 	the joint and survivor optional annuity must occur within 90 days of attaining age 65 or of 
36.9 	reaching the five-year anniversary of the effective date of the disability benefit, whichever 
36.10 	is later. The optional annuity takes effect on the first day of the month following the month 
36.11 	in which the person attains age 65 or reaches the five-year anniversary of the effective date 
36.12 	of the disability benefit, whichever is later; or
36.13 	(3) if there is a dependent child or children under clause (1) or (2), the dependent 
36.14 	child is entitled to a dependent child benefit under section 353.31, subdivision 1b, 
36.15 	paragraph (b).

36.16 	Sec. 32. Minnesota Statutes 2008, section 353.34, subdivision 3, is amended to read:
36.17 		Subd. 3.Deferred annuity; eligibility; computation. A member with at least 
36.18 	three years of allowable service when termination of public service or termination of 
36.19 	membership occurs has the option of leaving the accumulated deductions in the fund and 
36.20 	being entitled to a deferred retirement annuity commencing at normal retirement age or 
36.21 	to a deferred early retirement annuity under section 353.30, subdivision 1a, 1b, 1c, or 5. 
36.22 	The deferred annuity must be computed under section 353.29, subdivision 3 or 3a, on the 
36.23 	basis of the law in effect on the date of termination of public service or termination of 
36.24 	membership, whichever is earlier, and must be augmented as provided in section 353.71, 
36.25 	subdivision 2. A former member qualified to apply for a deferred retirement annuity may 
36.26 	revoke this option at any time before the commencement of deferred annuity payments 
36.27 	by making application for a refund. The person is entitled to a refund of accumulated 
36.28 	member contributions within 30 days following date of receipt of the application by the 
36.29 	executive director. 

36.30 	Sec. 33. Minnesota Statutes 2008, section 353.37, is amended by adding a subdivision 
36.31 	to read:
36.32 		Subd. 6.Application in certain instances. (a) A person who retired under the 
36.33 	provisions of Minnesota Statutes 2008, chapter 422A, on or before June 30, 2010, 
37.1 	whichever is earlier, is not subject to the provisions of this section for subsequent 
37.2 	reemployment by a governmental subdivision.
37.3 	(b) A person who retired under the provisions of section 353.29, subdivision 1, 
37.4 	paragraph (b), 353.31, subdivision 1, paragraph (b), or 353.33, subdivision 1, paragraph 
37.5 	(b), after the effective date of the consolidation under section 353.47, subdivision 7, is 
37.6 	subject to this section for subsequent reemployment by a governmental subdivision.

37.7 	Sec. 34. Minnesota Statutes 2008, section 353.46, subdivision 6, is amended to read:
37.8 		Subd. 6.Computation of benefits for certain coordinated members. Any 
37.9 	coordinated member who prior tobefore July 1, 1979, was a member of the coordinated 
37.10 	program of the former Minneapolis Municipal Employees Retirement Fund and who prior 
37.11 	tobefore July 1, 1978, was a member of the basic program of the former Minneapolis 
37.12 	Municipal Employees Retirement Fund shall:
37.13 	(1) beis entitled to receive a retirement annuity when otherwise qualified, the 
37.14 	calculation of which shallmust utilize the formula accrual rates specified in Minnesota 
37.15 	Statutes 2008, section 422A.15, subdivision 1, for that portion of credited service which 
37.16 	was rendered prior tobefore July 1, 1978, and the formula accrual rates specified in 
37.17 	section 353.29, subdivision 3 356.315, subdivision 2, for the remainder of credited service, 
37.18 	both applied to the average salary as specified in section 353.29, subdivision 2 353.01, 
37.19 	subdivision 17a. The formula accrual rates to be used in calculating the retirement annuity 
37.20 	shallmust recognize the service after July 1, 1978, as a member of the coordinated 
37.21 	program of the former Minneapolis Municipal Employees Retirement Fund and after July 
37.22 	1, 1979, as a member of the coordinated program of the general employees retirement plan 
37.23 	of the Public Employees Retirement Association as a continuation of service rendered 
37.24 	prior tobefore July 1, 1978. The annuity amount attributable to service as a member of the 
37.25 	basic program of the Minneapolis Municipal Employees Retirement Fund shall be payable 
37.26 	by the Minneapolis Employees Retirement Fund and the annuity amount attributable to 
37.27 	all other service shall beis payable byfrom the general employees retirement plan of the 
37.28 	Public Employees Retirement Association;.
37.29 	(2) retain eligibility when otherwise qualified for a disability benefit from the 
37.30 	Minneapolis Employees Retirement Fund until July 1, 1982, notwithstanding coverage 
37.31 	by the Public Employees Retirement Association, if the member has or would, without 
37.32 	the transfer of retirement coverage from the basic program of the Minneapolis Municipal 
37.33 	Employees Retirement Fund to the coordinated program of the Minneapolis Municipal 
37.34 	Employees Retirement Fund or from the coordinated program of the Minneapolis 
37.35 	Municipal Employees Retirement Fund to the public employees retirement fund, have 
38.1 	sufficient credited service prior to January 1, 1983, to meet the minimum service 
38.2 	requirements for a disability benefit pursuant to section 422A.18. The disability benefit 
38.3 	amount attributable to service as a member of the basic program of the Minneapolis 
38.4 	Municipal Employees Retirement Fund shall be payable by the Minneapolis Employees 
38.5 	Retirement Fund and the disability benefit amount attributable to all other service shall be 
38.6 	payable by the Public Employees Retirement Association.  

38.7 	Sec. 35. [353.47] CONSOLIDATION OF MINNEAPOLIS EMPLOYEES 
38.8 	RETIREMENT FUND.
38.9 		Subdivision 1.Membership transfer. Effective as of June 30, 2010, under 
38.10 	subdivision 7, active, inactive, and retired members of the Minneapolis Employees 
38.11 	Retirement Fund are transferred to the general employees retirement plan of the Public 
38.12 	Employees Retirement Association and are no longer members of the Minneapolis 
38.13 	Employees Retirement Fund.
38.14 		Subd. 2.Service credit and benefit liability transfer. (a) All allowable service 
38.15 	credit and salary credit of the members of the  Minneapolis Employees Retirement Fund as 
38.16 	specified in the records of the Minneapolis Employees Retirement Fund through June 30, 
38.17 	2010, is transferred to the general employees retirement plan of the Public Employees 
38.18 	Retirement Association and is credited by the general employees retirement plan under 
38.19 	section 353.01, subdivisions 10 and 16, on June 30, 2010.
38.20 	(b) The liability for the payment of annuities and benefits of the Minneapolis 
38.21 	Employees Retirement Fund retirees and benefit recipients as specified in the records of 
38.22 	the Minneapolis Employees Retirement Fund is transferred to the general employees 
38.23 	retirement plan of the Public Employees Retirement Association on July 1, 2010.
38.24 		Subd. 3.Transfer of records. On June 30, 2010, the executive director of the 
38.25 	Minneapolis Employees Retirement Fund shall transfer all records and documents relating 
38.26 	to the Minneapolis Employees Retirement Fund to the executive director of the Public 
38.27 	Employees Retirement Association. To the extent possible, original copies of all records 
38.28 	and documents must be transferred.
38.29 		Subd. 4.Transfer of title to assets. On July 1, 2010, legal title to the assets of the 
38.30 	Minneapolis Employees Retirement Fund transfers to the State Board of Investment and 
38.31 	the assets must be invested under section 11A.14, as assets of the general employees 
38.32 	retirement plan of the Public Employees Retirement Association.  The general employees 
38.33 	retirement plan of the Public Employees Retirement Association is the successor in 
38.34 	interest to all claims that the Minneapolis Employees Retirement Fund may have or any 
38.35 	assets, but the general employees retirement plan is not liable for any claim against the 
39.1 	Minneapolis Employees Retirement Fund, its governing board, or its administrative staff 
39.2 	acting in a fiduciary capacity under chapter 356A or under common law, which is founded 
39.3 	upon a claim of breach of fiduciary duty, but where the act or acts constituting the claimed 
39.4 	breach were not undertaken in good faith, the general employees retirement plan may 
39.5 	assert any applicable defense to any claim in any judicial or administrative proceeding that 
39.6 	the Minneapolis Employees Retirement Fund, its board, or its administrative staff would 
39.7 	otherwise have been entitled to assert, and the general employees retirement plan may 
39.8 	assert any applicable defense that it has in its capacity as a statewide agency.
39.9 		Subd. 5.Benefits. The annuities and benefits of or attributable to retired, disabled, 
39.10 	deferred, or inactive Minneapolis Employees Retirement Fund members with that status 
39.11 	as of June 30, 2010, continue after consolidation, adjusted with an additional annuity or 
39.12 	benefit amount with an actuarial present value, calculated using the mortality table of 
39.13 	the general employees retirement plan of the Public Employees Retirement Association 
39.14 	and an interest rate of 8.5 percent, equal to the difference between the actuarial present 
39.15 	value of the person's annuity or benefit, calculated on the same basis, with automatic 
39.16 	annual postretirement adjustments based on increases in the federal Consumer Price 
39.17 	Index, subject to a 3.5 percent annual maximum, and the actuarial present value of the 
39.18 	person's annuity or benefit, calculated on the same basis, with 2.5 percent annual automatic 
39.19 	postretirement adjustments.
39.20 		Subd. 6.Additional asset transfer or annual payments. (a) As of June 30, 2010, 
39.21 	the approved actuary retained by the Public Employees Retirement Association shall 
39.22 	determine the amount of any additional asset requirement of the general employees 
39.23 	retirement plan of the Public Employees Retirement Association by virtue of or as a result 
39.24 	of the consolidation of the Minneapolis Employees Retirement Fund.
39.25 	(b) The additional asset amount is the amount of assets needed to bring the assets 
39.26 	of the Minneapolis Employees Retirement Fund, at fair market value as of June 30, 
39.27 	2009, attributable to active members equal to the present value of future benefits for 
39.28 	those members as of July 1, 2009, reduced by the present value of the future normal 
39.29 	cost for those active members as of July 1, 2009, and the assets of the Minneapolis 
39.30 	Employees Retirement Fund, at fair market value as of June 30, 2009, attributable to 
39.31 	retired members equal to the present value of future benefits for those retired members, 
39.32 	reduced by the present value of the state aid to the Minneapolis Employees Retirement 
39.33 	Fund under section 422A.101, subdivision 3, reduced by the present value of the employer 
39.34 	contributions payable by the city of Minneapolis under section 353.27, subdivision 3, 
39.35 	paragraph (b), reduced by the present value of the additional employer contribution 
39.36 	payable by the city of Minneapolis under section 353.27, subdivision 3a, for active former 
40.1 	Minneapolis Employees Retirement Fund members, and reduced by the present value of 
40.2 	the special former Minneapolis Employees Retirement Fund employer contribution under 
40.3 	section 353.27, subdivision 3c.
40.4 	(c) Unless a different allocation of the additional asset amount is agreed upon by the 
40.5 	city of Minneapolis and the state, the additional asset amount must be paid by the city of 
40.6 	Minneapolis. The additional asset may be paid in a lump sum on or before September 30, 
40.7 	2010, or in ten equal annual installments, payable on December 31 annually, plus interest 
40.8 	on the unpaid balance at an annual compound interest rate of 8.5 percent from June 30, 
40.9 	2010, or most recent prior payment, whichever applies, to the date of the applicable 
40.10 	payment. Any alternative allocation agreement under this paragraph must be in the form 
40.11 	of a written agreement executed by the mayor of Minneapolis and by the governor and 
40.12 	must be accompanied by a resolution approving the agreement by the city council of the 
40.13 	city of Minneapolis and by an approval resolution adopted by the Legislative Advisory 
40.14 	Commission. Any alternative agreement and accompanying resolutions must be filed with 
40.15 	the secretary of state. If Minneapolis is obligated to pay some or all of the additional 
40.16 	asset amount and if the finance director of Minneapolis determines that employing units 
40.17 	other than Minneapolis with former active Minneapolis Employees Retirement Fund 
40.18 	members owe a portion of that lump sum payment, the finance director shall bill those 
40.19 	employing units for their proportional share of the lump sum payment or of the annual 
40.20 	installment payment.
40.21 		Subd. 7.Effective date of consolidation. The effective date of the consolidation 
40.22 	of the Minneapolis Employees Retirement Fund with the general employees retirement 
40.23 	plan is June 30, 2010.

40.24 	Sec. 36. Minnesota Statutes 2008, section 353.64, subdivision 7, is amended to read:
40.25 		Subd. 7.Pension coverage for certain public safety employees of the
40.26 	Metropolitan Airports Commission. Any person first employed as either a full-time 
40.27 	firefighter or a full-time police officer by the Metropolitan Airports Commission after June 
40.28 	30, 1978, who is not eligible for coverage under the agreement signed between the state 
40.29 	and the secretary of the federal Department of Health and Human Services making the 
40.30 	provisions of the federal Old Age, Survivors, and Disability Insurance Act applicable to 
40.31 	municipal employees because that position is excluded from application pursuant tounder 
40.32 	Title 42, United States Code, Sections 418 (d) (5) (A) and 418 (d) (8) (D) and section 
40.33 	355.07, shall not be a member of the Minneapolis Employees Retirement Fund but shall 
40.34 	beis a member of the public employees police and fire fund and shall beis deemed to be a 
40.35 	firefighter or a police officer within the meaning of this section. The Metropolitan Airports 
41.1 	Commission shall make the employer contribution required pursuant tounder section 
41.2 	353.65, subdivision 3, with respect to each of its firefighters or police officers covered 
41.3 	by the public employees police and fire fund and shall meet the employers recording and 
41.4 	reporting requirements set forth in section 353.65, subdivision 4. 

41.5 	Sec. 37. Minnesota Statutes 2008, section 354.71, is amended to read:
41.6 	354.71 MINNEAPOLIS EMPLOYEES RETIREMENT FUND STATE AID 
41.7 	REDEDICATED.
41.8 		Subdivision 1.Appropriation. The positive difference, if any, between the actual 
41.9 	state aid paidpayable to the general employees retirement plan of the Public Employees 
41.10 	Retirement Association with respect to the consolidated former Minneapolis Employees 
41.11 	Retirement Fund under section 422A.101, subdivision 3, and $8,065,000 annually is 
41.12 	appropriated from the general fund to the commissioner of finance for deposit in the 
41.13 	Teachers Retirement Association to offset all or a portion of the current and future 
41.14 	unfunded actuarial accrued liability of the Minneapolis Teachers Retirement Fund 
41.15 	Association.
41.16 		Subd. 2.Financial requirements. The appropriation in subdivision 1 is available 
41.17 	to the extent that financial requirements ofwith respect to the consolidated former 
41.18 	Minneapolis Employees Retirement Fund under section 422A.101, subdivision 3, have 
41.19 	been satisfied.

41.20 	Sec. 38. Minnesota Statutes 2008, section 354A.011, subdivision 27, is amended to 
41.21 	read:
41.22 		Subd. 27.Teacher. (a) "Teacher" means any person who renders service for a public 
41.23 	school district, other than a charter school, located in the corporate limits of Duluth or 
41.24 	St. Paul, as any of the following:
41.25 	(1) a full-time employee in a position for which a valid license from the state 
41.26 	Department of Education is required;
41.27 	(2) an employee of the teachers retirement fund association located in the city of 
41.28 	the first class unless the employee has exercised the option pursuant to Laws 1955, 
41.29 	chapter 10, section 1, to retain membership in the Minneapolis Employees Retirement 
41.30 	Fund established pursuant to chapter 422A;
41.31 	(3) a part-time employee in a position for which a valid license from the state 
41.32 	Department of Education is required; or
41.33 	(4) a part-time employee in a position for which a valid license from the state 
41.34 	Department of Education is required who also renders other nonteaching services for the 
42.1 	school district, unless the board of trustees of the teachers retirement fund association 
42.2 	determines that the combined employment is on the whole so substantially dissimilar to 
42.3 	teaching service that the service may not be covered by the association.
42.4 	(b) The term does not mean any person who renders service in the school district 
42.5 	as any of the following:
42.6 	(1) an independent contractor or the employee of an independent contractor;
42.7 	(2) an employee who is a full-time teacher covered by the Teachers Retirement 
42.8 	Association or by another teachers retirement fund association established pursuant to this 
42.9 	chapter or chapter 354;
42.10 	(3) an employee exempt from licensure pursuant to section 122A.30; 
42.11 	(4) an employee who is a teacher in a technical college located in a city of the first 
42.12 	class unless the person elects coverage by the applicable first class city teacher retirement 
42.13 	fund association under section 354B.21, subdivision 2; 
42.14 	(5) a teacher employed by a charter school, irrespective of the location of the 
42.15 	school; or
42.16 	(6) an employee who is a part-time teacher in a technical college in a city of the first 
42.17 	class and who has elected coverage by the applicable first class city teacher retirement 
42.18 	fund association under section 354B.21, subdivision 2, but (i) the teaching service is 
42.19 	incidental to the regular nonteaching occupation of the person; (ii) the applicable technical 
42.20 	college stipulates annually in advance that the part-time teaching service will not exceed 
42.21 	300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed 300 
42.22 	hours in the fiscal year to which the certification applies. 

42.23 	Sec. 39. Minnesota Statutes 2008, section 354A.39, is amended to read:
42.24 	354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.
42.25 	Any person who has been a member of the Minnesota State Retirement System, the 
42.26 	Public Employees Retirement Association including the Public Employees Retirement 
42.27 	Association Police and Fire Fund, the Teachers Retirement Association, the Minnesota 
42.28 	State Patrol Retirement Association, the legislators retirement plan, the constitutional 
42.29 	officers retirement plan, the Minneapolis Employees Retirement Fund, the Duluth 
42.30 	Teachers Retirement Fund Association new law coordinated program, the St. Paul 
42.31 	Teachers Retirement Fund Association coordinated program, or any other public employee 
42.32 	retirement system in the state of Minnesota having a like provision but excluding all other 
42.33 	funds providing retirement benefits for police officers or firefighters shall be entitled 
42.34 	when qualified to an annuity from each fund if the person's total allowable service in all 
42.35 	of the funds or in any two or more of the funds totals three or more years, provided that 
43.1 	no portion of the allowable service upon which the retirement annuity from one fund is 
43.2 	based is used again in the computation for a retirement annuity from another fund and 
43.3 	provided further that the person has not taken a refund from any of funds or associations 
43.4 	since the person's membership in the fund or association has terminated. The annuity 
43.5 	from each fund or association shall be determined by the appropriate provisions of the 
43.6 	law governing each fund or association, except that the requirement that a person must 
43.7 	have at least three years of allowable service in the respective fund or association shall not 
43.8 	apply for the purposes of this section, provided that the aggregate service in two or more 
43.9 	of these funds equals three or more years.

43.10 	Sec. 40. Minnesota Statutes 2008, section 356.20, subdivision 2, is amended to read:
43.11 		Subd. 2.Covered public pension plans and funds. This section applies to the 
43.12 	following public pension plans:
43.13 	(1) the general state employees retirement plan of the Minnesota State Retirement 
43.14 	System;
43.15 	(2) the general employees retirement plan of the Public Employees Retirement 
43.16 	Association;
43.17 	(3) the Teachers Retirement Association;
43.18 	(4) the State Patrol retirement plan;
43.19 	(5) the St. Paul Teachers Retirement Fund Association;
43.20 	(6) the Duluth Teachers Retirement Fund Association;
43.21 	(7) the Minneapolis Employees Retirement Fund;
43.22 	(8)(7) the University of Minnesota faculty retirement plan;
43.23 	(9)(8) the University of Minnesota faculty supplemental retirement plan;
43.24 	(10)(9) the judges retirement fund;
43.25 	(11)(10) a police or firefighter's relief association specified or described in section 
43.26 	69.77, subdivision 1a;
43.27 	(12)(11) a volunteer firefighter relief association governed by section 69.771, 
43.28 	subdivision 1; 
43.29 	(13)(12) the public employees police and fire plan of the Public Employees 
43.30 	Retirement Association;
43.31 	(14)(13) the correctional state employees retirement plan of the Minnesota State 
43.32 	Retirement System; and
43.33 	(15)(14) the local government correctional service retirement plan of the Public 
43.34 	Employees Retirement Association.

44.1 	Sec. 41. Minnesota Statutes 2008, section 356.214, subdivision 1, is amended to read:
44.2 		Subdivision 1.Actuary retention. (a) The governing board or managing or 
44.3 	administrative official of each public pension plan and retirement fund or plan enumerated 
44.4 	in paragraph (b) shall contract with an established actuarial consulting firm to conduct 
44.5 	annual actuarial valuations and related services. The principal from the actuarial 
44.6 	consulting firm on the contract must be an approved actuary under section 356.215, 
44.7 	subdivision 1, paragraph (c). 
44.8 	(b) Actuarial services must include the preparation of actuarial valuations and 
44.9 	related actuarial work for the following retirement plans:
44.10 	(1) the teachers retirement plan, Teachers Retirement Association;
44.11 	(2) the general state employees retirement plan, Minnesota State Retirement System;
44.12 	(3) the correctional employees retirement plan, Minnesota State Retirement System;
44.13 	(4) the State Patrol retirement plan, Minnesota State Retirement System;
44.14 	(5) the judges retirement plan, Minnesota State Retirement System;
44.15 	(6) the Minneapolis employees retirement plan, Minneapolis Employees Retirement 
44.16 	Fund;
44.17 	(7)(6) the public employees retirement plan, Public Employees Retirement 
44.18 	Association;
44.19 	(8)(7) the public employees police and fire plan, Public Employees Retirement 
44.20 	Association;
44.21 	(9)(8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund 
44.22 	Association;
44.23 	(10)(9) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund 
44.24 	Association;
44.25 	(11)(10) the legislators retirement plan, Minnesota State Retirement System;
44.26 	(12)(11) the elective state officers retirement plan, Minnesota State Retirement 
44.27 	System; and
44.28 	(13)(12) local government correctional service retirement plan, Public Employees 
44.29 	Retirement Association.
44.30 	(c) The contracts must require completion of the annual actuarial valuation 
44.31 	calculations on a fiscal year basis, with the contents of the actuarial valuation calculations 
44.32 	as specified in section 356.215, and in conformity with the standards for actuarial work 
44.33 	adopted by the Legislative Commission on Pensions and Retirement. 
44.34 	The contracts must require completion of annual experience data collection and 
44.35 	processing and a quadrennial published experience study for the plans listed in paragraph 
44.36 	(b), clauses (1), (2), and (7) (6), as provided for in the standards for actuarial work 
45.1 	adopted by the commission. The experience data collection, processing, and analysis 
45.2 	must evaluate the following:
45.3 	(1) individual salary progression;
45.4 	(2) the rate of return on investments based on the current asset value;
45.5 	(3) payroll growth;
45.6 	(4) mortality;
45.7 	(5) retirement age;
45.8 	(6) withdrawal; and
45.9 	(7) disablement.
45.10 	(d) The actuary shall annually prepare a report to the governing or managing board 
45.11 	or administrative official and the legislature, summarizing the results of the actuarial 
45.12 	valuation calculations. The actuary shall include with the report any recommendations 
45.13 	concerning the appropriateness of the support rates to achieve proper funding of 
45.14 	the retirement plans by the required funding dates. The actuary shall, as part of the 
45.15 	quadrennial experience study, include recommendations on the appropriateness of the 
45.16 	actuarial valuation assumptions required for evaluation in the study.
45.17 	(e) If the actuarial gain and loss analysis in the actuarial valuation calculations 
45.18 	indicates a persistent pattern of sizable gains or losses, the governing or managing board 
45.19 	or administrative official shall direct the actuary to prepare a special experience study 
45.20 	for a plan listed in paragraph (b), clause (3), (4), (5), (6) (7), (8), (9), (10), (11), (12),
45.21 	or (13) (12), in the manner provided for in the standards for actuarial work adopted by 
45.22 	the commission.

45.23 	Sec. 42. Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to read:
45.24 		Subd. 8.Interest and salary assumptions. (a) The actuarial valuation must use 
45.25 	the applicable following preretirement interest assumption and the applicable following 
45.26 	postretirement interest assumption:

45.27
45.28
45.29	plan
	preretirement
interest rate
assumption
	postretirement 
interest rate
assumption
	
45.30	general state employees retirement plan
		8.5%
	6.0%
	
45.31	correctional state employees retirement plan
		8.5
	6.0
	
45.32	State Patrol retirement plan
		8.5
	6.0
	
45.33	legislators retirement plan
		8.5
	6.0
	
45.34	elective state officers retirement plan
		8.5
	6.0
	
45.35	judges retirement plan
		8.5
	6.0
	
45.36	general public employees retirement plan
		8.5
	6.0
	
45.37	public employees police and fire retirement plan
		8.5
	6.0
	
46.1
46.2	local government correctional service retirement 
plan
		8.5
	6.0
	
46.3	teachers retirement plan
		8.5
	6.0
	
46.4	Minneapolis employees retirement plan
		6.0
	5.0
	
46.5	Duluth teachers retirement plan
		8.5
	8.5
	
46.6	St. Paul teachers retirement plan
		8.5
	8.5
	
46.7	Minneapolis Police Relief Association
		6.0
	6.0
	
46.8	Fairmont Police Relief Association
		5.0
	5.0
	
46.9	Minneapolis Fire Department Relief Association
		6.0
	6.0
	
46.10	Virginia Fire Department Relief Association
		5.0
	5.0
	
46.11	Bloomington Fire Department Relief Association
		6.0
	6.0
	
46.12
46.13	local monthly benefit volunteer firefighters relief 
associations
		5.0
	5.0
	
46.14 	(b) Before July 1, 2010, the actuarial valuation must use the applicable following 
46.15 	single rate future salary increase assumption, the applicable following modified single 
46.16 	rate future salary increase assumption, or the applicable following graded rate future 
46.17 	salary increase assumption:
46.18 	(1) single rate future salary increase assumption

46.19
46.20	plan
	future salary
increase assumption
	
46.21	legislators retirement plan
		5.0%
	
46.22	judges retirement plan
		4.0 
	
46.23	Minneapolis Police Relief Association
		4.0
	
46.24	Fairmont Police Relief Association
		3.5
	
46.25
46.26	Minneapolis Fire Department Relief 
Association
		4.0
	
46.27	Virginia Fire Department Relief Association
		3.5
	
46.28
46.29	Bloomington Fire Department Relief 
Association
		4.0
	
46.30 	(2) modified single rate future salary increase assumption

46.31
46.32	plan
		future salary
increase assumption
	
46.33
46.34
46.35
46.36	Minneapolis employees 
retirement plan
		the prior calendar year amount increased 
first by 1.0198 percent to prior fiscal year 
date and then increased by 4.0 percent 
annually for each future year
	
46.37 	(3)(2) select and ultimate future salary increase assumption or graded rate future 
46.38 	salary increase assumption

46.39
46.40	plan
	future salary
increase assumption
	
46.41
46.42	general state employees retirement plan
	select calculation and 
assumption A
	
46.43	correctional state employees retirement plan
	assumption H
	
47.1	State Patrol retirement plan
	assumption G
	
47.2
47.3	general public employees retirement plan
	select calculation and 
assumption B
	
47.4	public employees police and fire fund retirement plan
	assumption C
	
47.5	local government correctional service retirement plan
	assumption G
	
47.6	teachers retirement plan
	assumption D
	
47.7	Duluth teachers retirement plan
	assumption E
	
47.8	St. Paul teachers retirement plan
	assumption F
	
47.9 	The select calculation is: during the 
47.10 	designated select period, a designated 
47.11 	percentage rate is multiplied by the result of 
47.12 	the designated integer minus T, where T is the 
47.13 	number of completed years of service, and is 
47.14 	added to the applicable future salary increase 
47.15 	assumption. The designated select period is 
47.16 	five years and the designated integer is five 
47.17 	for the general state employees retirement 
47.18 	plan and the general public employees 
47.19 	retirement plan. The designated select period 
47.20 	is ten years and the designated integer is ten 
47.21 	for all other retirement plans covered by 
47.22 	this clause. The designated percentage rate 
47.23 	is: (1) 0.2 percent for the correctional state 
47.24 	employees retirement plan, the State Patrol 
47.25 	retirement plan, the public employees police 
47.26 	and fire plan, and the local government 
47.27 	correctional service plan; (2) 0.6 percent 
47.28 	for the general state employees retirement 
47.29 	plan and the general public employees 
47.30 	retirement plan; and (3) 0.3 percent for the 
47.31 	teachers retirement plan, the Duluth Teachers 
47.32 	Retirement Fund Association, and the St. 
47.33 	Paul Teachers Retirement Fund Association. 
47.34 	The select calculation for the Duluth Teachers 
47.35 	Retirement Fund Association is 8.00 percent 
47.36 	per year for service years one through seven, 
47.37 	7.25 percent per year for service years seven 
48.1 	and eight, and 6.50 percent per year for 
48.2 	service years eight and nine.
48.3 	The ultimate future salary increase assumption is:

48.4	age
	A
	B
	C
	D
	E
	F
	G
	H
	
48.5	16
	5.95%
	5.95%
	11.00%
	7.70%
	8.00%
	6.90%
	7.7500%
	7.2500%
	
48.6	17
	5.90
	5.90
	11.00
	7.65
	8.00
	6.90
	7.7500
	7.2500
	
48.7	18
	5.85
	5.85
	11.00
	7.60
	8.00
	6.90
	7.7500
	7.2500
	
48.8	19
	5.80
	5.80
	11.00
	7.55
	8.00
	6.90
	7.7500
	7.2500
	
48.9	20
	5.75
	5.40
	11.00
	5.50
	6.90
	6.90
	7.7500
	7.2500
	
48.10	21
	5.75
	5.40
	11.00
	5.50
	6.90
	6.90
	7.1454
	6.6454
	
48.11	22
	5.75
	5.40
	10.50
	5.50
	6.90
	6.90
	7.0725
	6.5725
	
48.12	23
	5.75
	5.40
	10.00
	5.50
	6.85
	6.85
	7.0544
	6.5544
	
48.13	24
	5.75
	5.40
	9.50
	5.50
	6.80
	6.80
	7.0363
	6.5363
	
48.14	25
	5.75
	5.40
	9.00
	5.50
	6.75
	6.75
	7.0000
	6.5000
	
48.15	26
	5.75
	5.36
	8.70
	5.50
	6.70
	6.70
	7.0000
	6.5000
	
48.16	27
	5.75
	5.32
	8.40
	5.50
	6.65
	6.65
	7.0000
	6.5000
	
48.17	28
	5.75
	5.28
	8.10
	5.50
	6.60
	6.60
	7.0000
	6.5000
	
48.18	29
	5.75
	5.24
	7.80
	5.50
	6.55
	6.55
	7.0000
	6.5000
	
48.19	30
	5.75
	5.20
	7.50
	5.50
	6.50
	6.50
	7.0000
	6.5000
	
48.20	31
	5.75
	5.16
	7.30
	5.50
	6.45
	6.45
	7.0000
	6.5000
	
48.21	32
	5.75
	5.12
	7.10
	5.50
	6.40
	6.40
	7.0000
	6.5000
	
48.22	33
	5.75
	5.08
	6.90
	5.50
	6.35
	6.35
	7.0000
	6.5000
	
48.23	34
	5.75
	5.04
	6.70
	5.50
	6.30
	6.30
	7.0000
	6.5000
	
48.24	35
	5.75
	5.00
	6.50
	5.50
	6.25
	6.25
	7.0000
	6.5000
	
48.25	36
	5.75
	4.96
	6.30
	5.50
	6.20
	6.20
	6.9019
	6.4019
	
48.26	37
	5.75
	4.92
	6.10
	5.50
	6.15
	6.15
	6.8074
	6.3074
	
48.27	38
	5.75
	4.88
	5.90
	5.40
	6.10
	6.10
	6.7125
	6.2125
	
48.28	39
	5.75
	4.84
	5.70
	5.30
	6.05
	6.05
	6.6054
	6.1054
	
48.29	40
	5.75
	4.80
	5.50
	5.20
	6.00
	6.00
	6.5000
	6.0000
	
48.30	41
	5.75
	4.76
	5.40
	5.10
	5.90
	5.95
	6.3540
	5.8540
	
48.31	42
	5.75
	4.72
	5.30
	5.00
	5.80
	5.90
	6.2087
	5.7087
	
48.32	43
	5.65
	4.68
	5.20
	4.90
	5.70
	5.85
	6.0622
	5.5622
	
48.33	44
	5.55
	4.64
	5.10
	4.80
	5.60
	5.80
	5.9048
	5.4078
	
48.34	45
	5.45
	4.60
	5.00
	4.70
	5.50
	5.75
	5.7500
	5.2500
	
48.35	46
	5.35
	4.56
	4.95
	4.60
	5.40
	5.70
	5.6940
	5.1940
	
48.36	47
	5.25
	4.52
	4.90
	4.50
	5.30
	5.65
	5.6375
	5.1375
	
48.37	48
	5.15
	4.48
	4.85
	4.50
	5.20
	5.60
	5.5822
	5.0822
	
48.38	49
	5.05
	4.44
	4.80
	4.50
	5.10
	5.55
	5.5404
	5.0404
	
48.39	50
	4.95
	4.40
	4.75
	4.50
	5.00
	5.50
	5.5000
	5.0000
	
48.40	51
	4.85
	4.36
	4.75
	4.50
	4.90
	5.45
	5.4384
	4.9384
	
48.41	52
	4.75
	4.32
	4.75
	4.50
	4.80
	5.40
	5.3776
	4.8776
	
48.42	53
	4.65
	4.28
	4.75
	4.50
	4.70
	5.35
	5.3167
	4.8167
	
48.43	54
	4.55
	4.24
	4.75
	4.50
	4.60
	5.30
	5.2826
	4.7826
	
49.1	55
	4.45
	4.20
	4.75
	4.50
	4.50
	5.25
	5.2500
	4.7500
	
49.2	56
	4.35
	4.16
	4.75
	4.50
	4.40
	5.20
	5.2500
	4.7500
	
49.3	57
	4.25
	4.12
	4.75
	4.50
	4.30
	5.15
	5.2500
	4.7500
	
49.4	58
	4.25
	4.08
	4.75
	4.60
	4.20
	5.10
	5.2500
	4.7500
	
49.5	59
	4.25
	4.04
	4.75
	4.70
	4.10
	5.05
	5.2500
	4.7500
	
49.6	60
	4.25
	4.00
	4.75
	4.80
	4.00
	5.00
	5.2500
	4.7500
	
49.7	61
	4.25
	4.00
	4.75
	4.90
	3.90
	5.00
	5.2500
	4.7500
	
49.8	62
	4.25
	4.00
	4.75
	5.00
	3.80
	5.00
	5.2500
	4.7500
	
49.9	63
	4.25
	4.00
	4.75
	5.10
	3.70
	5.00
	5.2500
	4.7500
	
49.10	64
	4.25
	4.00
	4.75
	5.20
	3.60
	5.00
	5.2500
	4.7500
	
49.11	65
	4.25
	4.00
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
49.12	66
	4.25
	4.00
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
49.13	67
	4.25
	4.00
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
49.14	68
	4.25
	4.00
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
49.15	69
	4.25
	4.00
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
49.16	70
	4.25
	4.00
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
49.17	71
	4.25
	4.00
		5.20
					
49.18 	(c) Before July 2, 2010, the actuarial valuation must use the applicable following 
49.19 	payroll growth assumption for calculating the amortization requirement for the unfunded 
49.20 	actuarial accrued liability where the amortization retirement is calculated as a level 
49.21 	percentage of an increasing payroll:

49.22
49.23	plan
	payroll growth
assumption
	
49.24	general state employees retirement plan
		4.50%
	
49.25	correctional state employees retirement plan
		4.50
	
49.26	State Patrol retirement plan
		4.50
	
49.27	legislators retirement plan
		4.50
	
49.28	judges retirement plan
		4.00
	
49.29	general public employees retirement plan
		4.50
	
49.30	public employees police and fire retirement plan
		4.50
	
49.31
49.32	local government correctional service retirement 
plan
		4.50
	
49.33	teachers retirement plan
		4.50
	
49.34	Duluth teachers retirement plan
		4.50
	
49.35	St. Paul teachers retirement plan
		5.00
	
49.36 	(d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to 
49.37 	apply, unless a different salary assumption or a different payroll increase assumption:
49.38 	(1) has been proposed by the governing board of the applicable retirement plan;
49.39 	(2) is accompanied by the concurring recommendation of the actuary retained under 
49.40 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the 
49.41 	most recent actuarial valuation report if section 356.214 does not apply; and
50.1 	(3) has been approved or deemed approved under subdivision 18.

50.2 	Sec. 43. Minnesota Statutes 2008, section 356.215, subdivision 11, is amended to read:
50.3 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating 
50.4 	the level normal cost, the actuarial valuation of the retirement plan must contain an 
50.5 	exhibit for financial reporting purposes indicating the additional annual contribution 
50.6 	sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit 
50.7 	for contribution determination purposes indicating the additional contribution sufficient 
50.8 	to amortize the unfunded actuarial accrued liability. For the retirement plans listed in 
50.9 	subdivision 8, paragraph (c), the additional contribution must be calculated on a level 
50.10 	percentage of covered payroll basis by the established date for full funding in effect when 
50.11 	the valuation is prepared, assuming annual payroll growth at the applicable percentage 
50.12 	rate set forth in subdivision 8, paragraph (c). For all other retirement plans, the additional 
50.13 	annual contribution must be calculated on a level annual dollar amount basis. 
50.14 	(b) For any retirement plan other than the Minneapolis Employees Retirement Fund, 
50.15 	the general employees retirement plan of the Public Employees Retirement Association,
50.16 	and the St. Paul Teachers Retirement Fund Association, if there has not been a change in 
50.17 	the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a 
50.18 	change in the benefit plan governing annuities and benefits payable from the fund, a 
50.19 	change in the actuarial cost method used in calculating the actuarial accrued liability of all 
50.20 	or a portion of the fund, or a combination of the three, which change or changes by itself 
50.21 	or by themselves without inclusion of any other items of increase or decrease produce a 
50.22 	net increase in the unfunded actuarial accrued liability of the fund, the established date for 
50.23 	full funding is the first actuarial valuation date occurring after June 1, 2020.
50.24 	(c) For any retirement plan other than the Minneapolis Employees Retirement 
50.25 	Fund and the general employees retirement plan of the Public Employees Retirement 
50.26 	Association, if there has been a change in any or all of the actuarial assumptions used 
50.27 	for calculating the actuarial accrued liability of the fund, a change in the benefit plan 
50.28 	governing annuities and benefits payable from the fund, a change in the actuarial cost 
50.29 	method used in calculating the actuarial accrued liability of all or a portion of the fund, 
50.30 	or a combination of the three, and the change or changes, by itself or by themselves and 
50.31 	without inclusion of any other items of increase or decrease, produce a net increase in the 
50.32 	unfunded actuarial accrued liability in the fund, the established date for full funding must 
50.33 	be determined using the following procedure:
51.1 	(i) the unfunded actuarial accrued liability of the fund must be determined in 
51.2 	accordance with the plan provisions governing annuities and retirement benefits and the 
51.3 	actuarial assumptions in effect before an applicable change;
51.4 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
51.5 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
51.6 	(i) by the established date for full funding in effect before the change must be calculated 
51.7 	using the interest assumption specified in subdivision 8 in effect before the change;
51.8 	(iii) the unfunded actuarial accrued liability of the fund must be determined in 
51.9 	accordance with any new plan provisions governing annuities and benefits payable from 
51.10 	the fund and any new actuarial assumptions and the remaining plan provisions governing 
51.11 	annuities and benefits payable from the fund and actuarial assumptions in effect before 
51.12 	the change;
51.13 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
51.14 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
51.15 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
51.16 	under item (iii) over a period of 30 years from the end of the plan year in which the 
51.17 	applicable change is effective must be calculated using the applicable interest assumption 
51.18 	specified in subdivision 8 in effect after any applicable change;
51.19 	(v) the level annual dollar or level percentage amortization contribution under item 
51.20 	(iv) must be added to the level annual dollar amortization contribution or level percentage 
51.21 	calculated under item (ii);
51.22 	(vi) the period in which the unfunded actuarial accrued liability amount determined 
51.23 	in item (iii) is amortized by the total level annual dollar or level percentage amortization 
51.24 	contribution computed under item (v) must be calculated using the interest assumption 
51.25 	specified in subdivision 8 in effect after any applicable change, rounded to the nearest 
51.26 	integral number of years, but not to exceed 30 years from the end of the plan year in 
51.27 	which the determination of the established date for full funding using the procedure set 
51.28 	forth in this clause is made and not to be less than the period of years beginning in the 
51.29 	plan year in which the determination of the established date for full funding using the 
51.30 	procedure set forth in this clause is made and ending by the date for full funding in effect 
51.31 	before the change; and
51.32 	(vii) the period determined under item (vi) must be added to the date as of which 
51.33 	the actuarial valuation was prepared and the date obtained is the new established date 
51.34 	for full funding.
51.35 	(d) For the Minneapolis Employees Retirement Fund, the established date for full 
51.36 	funding is June 30, 2020.
52.1 	(e)(d) For the general employees retirement plan of the Public Employees 
52.2 	Retirement Association, the established date for full funding is June 30, 2031.
52.3 	(f)(e) For the Teachers Retirement Association, the established date for full funding 
52.4 	is June 30, 2037.
52.5 	(g)(f) For the correctional state employees retirement plan of the Minnesota State 
52.6 	Retirement System, the established date for full funding is June 30, 2038.
52.7 	(h)(g) For the judges retirement plan, the established date for full funding is June 
52.8 	30, 2038.
52.9 	(i)(h) For the public employees police and fire retirement plan, the established date 
52.10 	for full funding is June 30, 2038.
52.11 	(j)(i) For the St. Paul Teachers Retirement Fund Association, the established 
52.12 	date for full funding is June 30 of the 25th year from the valuation date. In addition to 
52.13 	other requirements of this chapter, the annual actuarial valuation shall contain an exhibit 
52.14 	indicating the funded ratio and the deficiency or sufficiency in annual contributions when 
52.15 	comparing liabilities to the market value of the assets of the fund as of the close of the 
52.16 	most recent fiscal year.
52.17 	(k)(j) For the retirement plans for which the annual actuarial valuation indicates 
52.18 	an excess of valuation assets over the actuarial accrued liability, the valuation assets in 
52.19 	excess of the actuarial accrued liability must be recognized as a reduction in the current 
52.20 	contribution requirements by an amount equal to the amortization of the excess expressed 
52.21 	as a level percentage of pay over a 30-year period beginning anew with each annual 
52.22 	actuarial valuation of the plan.
52.23 	(l)(k) In addition to calculating the unfunded actuarial accrued liability of the 
52.24 	retirement plan for financial reporting purposes under paragraphs (a) to (j) (i), the actuarial 
52.25 	valuation of the retirement plan must also include a calculation of the unfunded actuarial 
52.26 	accrued liability of the retirement plan for purposes of determining the amortization 
52.27 	contribution sufficient to amortize the unfunded actuarial liability of the Minnesota Post 
52.28 	Retirement Investment Fund. For this exhibit, the calculation must be the unfunded 
52.29 	actuarial accrued liability net of the postretirement adjustment liability funded from 
52.30 	the investment performance of the Minnesota Post Retirement Investment Fund or the 
52.31 	retirement benefit fund.

52.32 	Sec. 44. Minnesota Statutes 2008, section 356.30, subdivision 3, is amended to read:
52.33 		Subd. 3.Covered plans. This section applies to the following retirement plans:
52.34 	(1) the general state employees retirement plan of the Minnesota State Retirement 
52.35 	System, established under chapter 352;
53.1 	(2) the correctional state employees retirement plan of the Minnesota State 
53.2 	Retirement System, established under chapter 352;
53.3 	(3) the unclassified employees retirement program, established under chapter 352D;
53.4 	(4) the State Patrol retirement plan, established under chapter 352B;
53.5 	(5) the legislators retirement plan, established under chapter 3A;
53.6 	(6) the elective state officers retirement plan, established under chapter 352C;
53.7 	(7) the general employees retirement plan of the Public Employees Retirement 
53.8 	Association, established under chapter 353;
53.9 	(8) the public employees police and fire retirement plan of the Public Employees 
53.10 	Retirement Association, established under chapter 353;
53.11 	(9) the local government correctional service retirement plan of the Public 
53.12 	Employees Retirement Association, established under chapter 353E;
53.13 	(10) the Teachers Retirement Association, established under chapter 354;
53.14 	(11) the Minneapolis Employees Retirement Fund, established under chapter 422A;
53.15 	(12)(11) the St. Paul Teachers Retirement Fund Association, established under 
53.16 	chapter 354A;
53.17 	(13)(12) the Duluth Teachers Retirement Fund Association, established under 
53.18 	chapter 354A; and
53.19 	(14)(13) the judges retirement fund, established by chapter 490. 

53.20 	Sec. 45. Minnesota Statutes 2008, section 356.302, subdivision 1, is amended to read:
53.21 		Subdivision 1.Definitions. (a) The terms used in this section are defined in this 
53.22 	subdivision.
53.23 	(b) "Average salary" means the highest average of covered salary for the appropriate 
53.24 	period of credited service that is required for the calculation of a disability benefit by 
53.25 	the covered retirement plan and that is drawn from any period of credited service and 
53.26 	successive years of covered salary in a covered retirement plan.
53.27 	(c) "Covered retirement plan" or "plan" means a retirement plan listed in subdivision 
53.28 	7.
53.29 	(d) "Duty-related" means a disabling illness or injury that occurred while the person 
53.30 	was actively engaged in employment duties or that arose out of the person's active 
53.31 	employment duties.
53.32 	(e) "General employee retirement plan" means a covered retirement plan listed in 
53.33 	subdivision 7, clauses (1) to (8)(6) and (13) (12).
53.34 	(f) "Occupationally disabled" means the condition of having a medically 
53.35 	determinable physical or mental impairment that makes a person unable to satisfactorily 
54.1 	perform the minimum requirements of the person's employment position or a substantially 
54.2 	similar employment position.
54.3 	(g) "Public safety employee retirement plan" means a covered retirement plan listed 
54.4 	in subdivision 7, clauses (9)(7) to (12) (11).
54.5 	(h) "Totally and permanently disabled" means the condition of having a medically 
54.6 	determinable physical or mental impairment that makes a person unable to engage in any 
54.7 	substantial gainful activity and that is expected to continue or has continued for a period 
54.8 	of at least one year or that is expected to result directly in the person's death.

54.9 	Sec. 46. Minnesota Statutes 2008, section 356.302, subdivision 7, is amended to read:
54.10 		Subd. 7.Covered retirement plans. This section applies to the following 
54.11 	retirement plans:
54.12 	(1) the general state employees retirement plan of the Minnesota State Retirement 
54.13 	System, established by chapter 352;
54.14 	(2) the unclassified state employees retirement program of the Minnesota State 
54.15 	Retirement System, established by chapter 352D;
54.16 	(3) the general employees retirement plan of the Public Employees Retirement 
54.17 	Association, established by chapter 353;
54.18 	(4) the Teachers Retirement Association, established by chapter 354;
54.19 	(5) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
54.20 	(6) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
54.21 	(7) the Minneapolis Employees Retirement Fund, established by chapter 422A;
54.22 	(8)(7) the state correctional employees retirement plan of the Minnesota State 
54.23 	Retirement System, established by chapter 352;
54.24 	(9)(8) the State Patrol retirement plan, established by chapter 352B;
54.25 	(10)(9) the public employees police and fire plan of the Public Employees 
54.26 	Retirement Association, established by chapter 353;
54.27 	(11)(10) the local government correctional service retirement plan of the Public 
54.28 	Employees Retirement Association, established by chapter 353E; and
54.29 	(12)(11) the judges retirement plan, established by chapter 490. 

54.30 	Sec. 47. Minnesota Statutes 2008, section 356.303, subdivision 4, is amended to read:
54.31 		Subd. 4.Covered retirement plans. This section applies to the following 
54.32 	retirement plans:
54.33 	(1) the legislators retirement plan, established by chapter 3A;
55.1 	(2) the general state employees retirement plan of the Minnesota State Retirement 
55.2 	System, established by chapter 352;
55.3 	(3) the correctional state employees retirement plan of the Minnesota State 
55.4 	Retirement System, established by chapter 352;
55.5 	(4) the State Patrol retirement plan, established by chapter 352B;
55.6 	(5) the elective state officers retirement plan, established by chapter 352C;
55.7 	(6) the unclassified state employees retirement program, established by chapter 
55.8 	352D;
55.9 	(7) the general employees retirement plan of the Public Employees Retirement 
55.10 	Association, established by chapter 353;
55.11 	(8) the public employees police and fire plan of the Public Employees Retirement 
55.12 	Association, established by chapter 353;
55.13 	(9) the local government correctional service retirement plan of the Public 
55.14 	Employees Retirement Association, established by chapter 353E;
55.15 	(10) the Teachers Retirement Association, established by chapter 354;
55.16 	(11) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
55.17 	(12) the St. Paul Teachers Retirement Fund Association, established by chapter 
55.18 	354A; and
55.19 	(13) the Minneapolis Employees Retirement Fund, established by chapter 422A; and
55.20 	(14)(13) the judges retirement fund, established by chapter 490. 

55.21 	Sec. 48. Minnesota Statutes 2008, section 356.32, subdivision 2, is amended to read:
55.22 		Subd. 2.Covered retirement plans. The provisions of this section apply to the 
55.23 	following retirement plans:
55.24 	(1) the general state employees retirement plan of the Minnesota State Retirement 
55.25 	System, established under chapter 352;
55.26 	(2) the correctional state employees retirement plan of the Minnesota State 
55.27 	Retirement System, established under chapter 352;
55.28 	(3) the State Patrol retirement plan, established under chapter 352B;
55.29 	(4) the general employees retirement plan of the Public Employees Retirement 
55.30 	Association, established under chapter 353;
55.31 	(5) the public employees police and fire plan of the Public Employees Retirement 
55.32 	Association, established under chapter 353;
55.33 	(6) the Teachers Retirement Association, established under chapter 354;
55.34 	(7) the Minneapolis Employees Retirement Fund, established under chapter 422A;
56.1 	(8)(7) the Duluth Teachers Retirement Fund Association, established under chapter 
56.2 	354A; and
56.3 	(9) the Minneapolis Teachers Retirement Fund Association, established under 
56.4 	chapter 354A; and
56.5 	(10)(8) the St. Paul Teachers Retirement Fund Association, established under 
56.6 	chapter 354A.

56.7 	Sec. 49. Minnesota Statutes 2008, section 356.401, subdivision 3, is amended to read:
56.8 		Subd. 3.Covered retirement plans. The provisions of this section apply to the 
56.9 	following retirement plans:
56.10 	(1) the legislators retirement plan, established by chapter 3A;
56.11 	(2) the general state employees retirement plan of the Minnesota State Retirement 
56.12 	System, established by chapter 352;
56.13 	(3) the correctional state employees retirement plan of the Minnesota State 
56.14 	Retirement System, established by chapter 352;
56.15 	(4) the State Patrol retirement plan, established by chapter 352B;
56.16 	(5) the elective state officers retirement plan, established by chapter 352C;
56.17 	(6) the unclassified state employees retirement program, established by chapter 
56.18 	352D;
56.19 	(7) the general employees retirement plan of the Public Employees Retirement 
56.20 	Association, established by chapter 353;
56.21 	(8) the public employees police and fire plan of the Public Employees Retirement 
56.22 	Association, established by chapter 353;
56.23 	(9) the public employees defined contribution plan, established by chapter 353D;
56.24 	(10) the local government correctional service retirement plan of the Public 
56.25 	Employees Retirement Association, established by chapter 353E;
56.26 	(11) the Teachers Retirement Association, established by chapter 354;
56.27 	(12) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
56.28 	(13) the Minneapolis Teachers Retirement Fund Association, established by chapter 
56.29 	354A;
56.30 	(14)(13) the St. Paul Teachers Retirement Fund Association, established by chapter 
56.31 	354A;
56.32 	(15)(14) the individual retirement account plan, established by chapter 354B;
56.33 	(16)(15) the higher education supplemental retirement plan, established by chapter 
56.34 	354C;
56.35 	(17) the Minneapolis Employees Retirement Fund, established by chapter 422A;
57.1 	(18)(16) the Minneapolis Police Relief Association, established by chapter 423B;
57.2 	(19)(17) the Minneapolis Firefighters Relief Association, established by chapter 
57.3 	423C; and
57.4 	(20)(18) the judges retirement fund, established by chapter 490.

57.5 	Sec. 50. Minnesota Statutes 2008, section 356.407, subdivision 2, is amended to read:
57.6 		Subd. 2.Covered funds. The provisions of this section apply to the following 
57.7 	retirement funds:
57.8 	(1) the general employees retirement plan of the Public Employees Retirement 
57.9 	Association established under chapter 353;
57.10 	(2) the public employees police and fire plan of the Public Employees Retirement 
57.11 	Association established under chapter 353;
57.12 	(3) the State Patrol retirement plan established under chapter 352B;
57.13 	(4) the legislators retirement plan established under chapter 3A;
57.14 	(5) the elective state officers retirement plan established under chapter 352C; and
57.15 	(6) the Teachers Retirement Association established under chapter 354; and.
57.16 	(7) the Minneapolis Employees Retirement Fund established under chapter 422A.

57.17 	Sec. 51. Minnesota Statutes 2008, section 356.431, subdivision 1, is amended to read:
57.18 		Subdivision 1.Lump-sum postretirement payment conversion. For benefits paid 
57.19 	after December 31, 2001, to eligible persons under sectionssection 356.42and 356.43, 
57.20 	the amount of the most recent lump-sum benefit payable to an eligible recipient under 
57.21 	sectionssection 356.42and 356.43 must be divided by 12. The result must be added to 
57.22 	the monthly annuity or benefit otherwise payable to an eligible recipient, must become a 
57.23 	permanent part of the benefit recipient's pension, and must be included in any pension 
57.24 	benefit subject to future increases.

57.25 	Sec. 52. Minnesota Statutes 2008, section 356.465, subdivision 3, is amended to read:
57.26 		Subd. 3.Covered retirement plans. The provisions of this section apply to the 
57.27 	following retirement plans:
57.28 	(1) the general state employees retirement plan of the Minnesota State Retirement 
57.29 	System established under chapter 352;
57.30 	(2) the correctional state employees retirement plan of the Minnesota State 
57.31 	Retirement System established under chapter 352;
57.32 	(3) the State Patrol retirement plan established under chapter 352B;
57.33 	(4) the legislators retirement plan established under chapter 3A;
58.1 	(5) the judges retirement plan established under chapter 490;
58.2 	(6) the general employees retirement plan of the Public Employees Retirement 
58.3 	Association established under chapter 353;
58.4 	(7) the public employees police and fire plan of the Public Employees Retirement 
58.5 	Association established under chapter 353;
58.6 	(8) the teachers retirement plan established under chapter 354;
58.7 	(9) the Duluth Teachers Retirement Fund Association established under chapter 
58.8 	354A;
58.9 	(10) the St. Paul Teachers Retirement Fund Association established under chapter 
58.10 	354A;
58.11 	(11) the Minneapolis Employees Retirement Fund established under chapter 422A;
58.12 	(12)(11) the Minneapolis Firefighters Relief Association established under chapter 
58.13 	423C;
58.14 	(13)(12) the Minneapolis Police Relief Association established under chapter 
58.15 	423B; and
58.16 	(14)(13) the local government correctional service retirement plan of the Public 
58.17 	Employees Retirement Association established under chapter 353E.

58.18 	Sec. 53. Minnesota Statutes 2008, section 356.64, is amended to read:
58.19 	356.64 REAL ESTATE INVESTMENTS.
58.20 	(a) Notwithstanding any law to the contrary, any public pension plan whose assets 
58.21 	are not invested by the State Board of Investment may invest its funds in Minnesota situs 
58.22 	nonfarm real estate ownership interests or loans secured by mortgages or deeds of trust if 
58.23 	the investment is consistent with section 356A.04.  
58.24 	(b) Except to the extent authorized in the case of the Minneapolis Employees 
58.25 	Retirement Fund under section 422A.05, subdivision 2c, paragraph (a), An investment 
58.26 	otherwise authorized by this section must also comply with the requirements and 
58.27 	limitations of section 11A.24, subdivision 6.  

58.28 	Sec. 54. Minnesota Statutes 2008, section 356.65, subdivision 2, is amended to read:
58.29 		Subd. 2. Disposition of abandoned amounts. Any unclaimed public pension 
58.30 	fund amounts existing in any public pension fund are presumed to be abandoned, but are 
58.31 	not subject to the provisions of sections 345.31 to 345.60. Unless the benefit plan of 
58.32 	the public pension fund specifically provides for a different disposition of unclaimed or 
58.33 	abandoned funds or amounts, any unclaimed public pension fund amounts cancel and 
58.34 	must be credited to the public pension fund. If the unclaimed public pension fund amount 
59.1 	exceeds $25 and the inactive or former member again becomes a member of the applicable 
59.2 	public pension plan or applies for a retirement annuity under section 3A.12, 352.72, 
59.3 	352B.30, 353.71, 354.60, or 356.30, or 422A.16, subdivision 8, whichever applies, the 
59.4 	canceled amount must be restored to the credit of the person. 

59.5 	Sec. 55. Minnesota Statutes 2008, section 356.91, is amended to read:
59.6 	356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION.
59.7 	(a) Upon written authorization of a person receiving an annuity from a public 
59.8 	pension fund administered by the Minnesota State Retirement System,or the Public 
59.9 	Employees Retirement Association, or the Minneapolis Employees Retirement Fund, the 
59.10 	executive director of the public pension fund may deduct from the retirement annuity an 
59.11 	amount requested by the annuitant to be paid as dues to any labor organization that is an 
59.12 	exclusive bargaining agent representing public employees or an organization representing 
59.13 	retired public employees of which the annuitant is a member and shall pay the amount to 
59.14 	the organization so designated by the annuitant.
59.15 	(b) A pension fund and the plan fiduciaries which authorize or administer deductions 
59.16 	of dues payments under paragraph (a) are not liable for failure to properly deduct or 
59.17 	transmit the dues amounts, provided that the fund and the fiduciaries have acted in good 
59.18 	faith.
59.19 	(c) The deductions under paragraph (a) may occur no more frequently than two 
59.20 	times per year and may not be used for political purposes.
59.21 	(d) Any labor organization specified in paragraph (a) shall reimburse the public 
59.22 	pension fund for the administrative expense of withholding premium amounts.

59.23 	Sec. 56. Minnesota Statutes 2008, section 356.96, subdivision 1, is amended to read:
59.24 		Subdivision 1.Definitions. (a) Unless the language or context clearly indicates that 
59.25 	a different meaning is intended, for the purpose of this section, the terms in paragraphs 
59.26 	(b) to (e) have the meanings given them.
59.27 	(b) "Chief administrative officer" means the executive director of a covered pension 
59.28 	plan or the executive director's designee or representative.
59.29 	(c) "Covered pension plan" means a plan enumerated in section 356.20, subdivision 
59.30 	2, clauses (1) to (4), (10) (9), and (13) (12) to (15) (14), but does not mean the 
59.31 	deferred compensation plan administered under sections 352.965 and 352.97 or to the 
59.32 	postretirement health care savings plan administered under section 352.98.
60.1 	(d) "Governing board" means the Board of Trustees of the Public Employees 
60.2 	Retirement Association, the Board of Trustees of the Teachers Retirement Association, or 
60.3 	the Board of Directors of the Minnesota State Retirement System.
60.4 	(e) "Person" includes an active, retired, deferred, or nonvested inactive participant in 
60.5 	a covered pension plan or a beneficiary of a participant, or an individual who has applied 
60.6 	to be a participant or who is or may be a survivor of a participant, or a state agency or 
60.7 	other governmental unit that employs active participants in a covered pension plan.

60.8 	Sec. 57. Minnesota Statutes 2008, section 422A.101, subdivision 3, is amended to read:
60.9 		Subd. 3.State contributions. (a) Subject to the limitation set forth in paragraph 
60.10 	(c), the state shall pay to the general employees retirement plan of the Public Employees 
60.11 	Retirement Association with respect to the former Minneapolis Employees Retirement 
60.12 	Fund annually an amount equal to the amount calculated under paragraph (b).
60.13 	(b) The payment amount is an amount equal to the financial requirements of the 
60.14 	Minneapolis Employees Retirement Fund reported in the actuarial valuation of the fund 
60.15 	prepared by the actuary retained under section 356.214 consistent with section 356.215 for 
60.16 	the most recent year butas of July 1, 2009, based on a target date for full amortization of 
60.17 	the unfunded actuarial accrued liabilities by June 30, 2020, less the amount of employee 
60.18 	contributions that would have been required under Minnesota Statutes 2008, section 
60.19 	422A.10, and the amount of employer contributions that would have been required under 
60.20 	Minnesota Statutes 2008, section 422A.101, subdivisions 1a, 2, and 2a. Payments shall
60.21 	must be made September 15 annually. 
60.22 	(c) The annual state contribution under this subdivision may not exceed $9,000,000, 
60.23 	plus the cost of the annual supplemental benefit determined under Minnesota Statutes 
60.24 	2008, section 356.43. 
60.25 	(d) If the amount determined under paragraph (b) exceeds $9,000,000, the excess 
60.26 	must be allocated to and paid to the fund by the employers identified in subdivisions 1a 
60.27 	and 2, other than units of metropolitan government. Each employer's share of the excess is 
60.28 	proportionate to the employer's share of the fund's unfunded actuarial accrued liability as 
60.29 	disclosed in the July 1, 2009, annual actuarial valuation prepared by the actuary retained 
60.30 	under section 356.214 compared to the total unfunded actuarial accrued liability attributed 
60.31 	to all employers identified in Minnesota Statutes 2008, section 422A.101, subdivisions 
60.32 	1a and 2, other than units of metropolitan government. Payments must be made in equal 
60.33 	installments as set forth in paragraph (b).
60.34 	(e) State contributions under this section end on September 15, 2020, or on the 
60.35 	September 1 following the first date on which the current assets of the general employees 
61.1 	retirement plan of the Public Employees Retirement Association equal or exceed 
61.2 	the actuarial accrued liability of the general employees retirement plan of the Public 
61.3 	Employees Retirement Association, whichever is earlier.

61.4 	Sec. 58. Minnesota Statutes 2008, section 422A.26, is amended to read:
61.5 	422A.26 COVERAGE BY THE PUBLIC EMPLOYEES RETIREMENT 
61.6 	ASSOCIATION.
61.7 	Notwithstanding section 422A.09, or any other law to the contrary, any person 
61.8 	whose employment by, or assumption of a position as an appointed or elected officer 
61.9 	of, the city of Minneapolis, any of the boards, departments, or commissions operated 
61.10 	as a department of the city of Minneapolis or independently if financed in whole or in 
61.11 	part by funds of the city of Minneapolis, the Metropolitan Airports Commission, the 
61.12 	former Minneapolis Employees Retirement Fund, or Special School District Number 1 if 
61.13 	the person is not a member of the Minneapolis Teachers Retirement Fund Association 
61.14 	by virtue of that employment or position, initially commences on or after July 1, 1979 
61.15 	shall beis a member of the general employees retirement plan of the Public Employees 
61.16 	Retirement Association unless excluded from membership pursuant tounder section 
61.17 	353.01, subdivision 2b. In no event shall there be any new members of the contributing 
61.18 	class of the Minneapolis employees fund on or after July 1, 1979.

61.19 	Sec. 59. Minnesota Statutes 2008, section 473.511, subdivision 3, is amended to read:
61.20 		Subd. 3.Existing sanitary districts, joint sewer boards. Effective January 1, 
61.21 	1971, the corporate existence of the Minneapolis-St. Paul Sanitary District, the North 
61.22 	Suburban Sanitary Sewer District, and any joint board created by agreement among local 
61.23 	government units pursuant to section 471.59, to provide interceptors and treatment works 
61.24 	for such local government units, shall terminate. All persons regularly employed by 
61.25 	such sanitary districts and joint boards on that date or on any earlier date on which the 
61.26 	former waste control commission pursuant to subdivisions 1 and 2 assumed ownership 
61.27 	and control of any interceptors or treatment works owned or operated by such sanitary 
61.28 	districts and joint boards, and who are employees of the commission on July 1, 1994, shall 
61.29 	be employees of the council, and may at their option become members of the Minnesota 
61.30 	State Retirement System or may continue as members of a public retirement association 
61.31 	under chapter 422A or any other law, to which they belonged before such date, and shall 
61.32 	retain all pension rights which they may have under such latter laws, and all other rights 
61.33 	to which they are entitled by contract or law. Members of trades who are employed by 
61.34 	the former Metropolitan Waste Control Commission, who have trade union pension 
62.1 	coverage pursuant to a collective bargaining agreement, and who elected exclusion from 
62.2 	coverage pursuant to section 473.512, or who are first employed after July 1, 1977, shall 
62.3 	not be covered by the Minnesota State Retirement System. The council shall make the 
62.4 	employer's contributions to pension funds of its employees. Such employees shall perform 
62.5 	such duties as may be prescribed by the council. All funds of such sanitary districts and 
62.6 	joint boards then on hand, and all subsequent collections of taxes, special assessments or 
62.7 	service charges levied or imposed by or for such sanitary districts or joint boards shall 
62.8 	be transferred to the council. The local government units otherwise entitled to such 
62.9 	cash, taxes, assessments or service charges shall be credited with such amounts, and 
62.10 	such credits shall be offset against any amounts to be paid by them to the council as 
62.11 	provided in section 473.517. The former Metropolitan Waste Control Commission, and 
62.12 	on July 1, 1994, the council shall succeed to and become vested by action of law with 
62.13 	all right, title and interest in and to any property, real or personal, owned or operated 
62.14 	by such sanitary districts and joint boards. Prior to that date the proper officers of such 
62.15 	sanitary districts and joint boards, or the former Metropolitan Waste Control Commission, 
62.16 	shall execute and deliver to the council all deeds, conveyances, bills of sale, and other 
62.17 	documents or instruments required to vest in the council good and marketable title to all 
62.18 	such real or personal property; provided that vesting of the title shall occur by operation 
62.19 	of law and failure to execute and deliver the documents shall not affect the vesting of 
62.20 	title in the former Metropolitan Waste Control Commission or the council on the dates 
62.21 	indicated in this subdivision. The council shall become obligated to pay or assume all 
62.22 	bonded or other debt and contract obligations incurred by the former Metropolitan Waste 
62.23 	Control Commission, or by such sanitary districts and joint boards, or incurred by local 
62.24 	government units for the acquisition or betterment of any interceptors or treatment works 
62.25 	owned or operated by such sanitary districts or joint boards.  

62.26 	Sec. 60. Minnesota Statutes 2008, section 473.606, subdivision 5, is amended to read:
62.27 		Subd. 5.Employees, others, affirmative action; prevailing wage. The corporation 
62.28 	shall have the power to appoint engineers and other consultants, attorneys, and such other 
62.29 	officers, agents, and employees as it may see fit, who shall perform such duties and receive 
62.30 	such compensation as the corporation may determine, and be removable at the pleasure of 
62.31 	the corporation. The corporation shall adopt an affirmative action plan, which shall be 
62.32 	submitted to the appropriate agency or office of the state for review and approval. The plan 
62.33 	shall include a yearly progress report to the agency or office. Officers and employees of 
62.34 	the corporation who cannot qualify and participate in the municipal employees retirement 
62.35 	fund under chapter 422A, shall be separated from service at the retirement age applicable 
63.1 	to officers or employees of the state of Minnesota in the classified service of the state civil 
63.2 	service as provided in section 43A.34, or as the same may from time to time be amended, 
63.3 	regardless of the provisions of the Veteran's Preference Act. Whenever the corporation 
63.4 	performs any work within the limits of a city of the first class, or establishes a minimum 
63.5 	wage for skilled or unskilled labor in the specifications or any contract for work within 
63.6 	one of the cities, the rate of pay to such skilled and unskilled labor shall be the prevailing 
63.7 	rate of wage for such labor in that city.  

63.8 	Sec. 61. Minnesota Statutes 2008, section 475.52, subdivision 6, is amended to read:
63.9 		Subd. 6. Certain purposes. Any municipality may issue bonds for paying 
63.10 	judgments against it; for refunding outstanding bonds; for funding floating indebtedness; 
63.11 	for funding actuarial liabilities to pay postemployment benefits to employees or officers 
63.12 	after their termination of service; or for funding all or part of the municipality's current 
63.13 	and future unfunded liability for a pension or retirement fund or plan referred to in 
63.14 	section 356.20, subdivision 2, as those liabilities are most recently computed pursuant 
63.15 	to sections 356.215 and 356.216. The board of trustees or directors of a pension fund or
63.16 	relief association referred to in section 69.77or chapter 422A must consent and must 
63.17 	be a party to any contract made under this section with respect to the fund held by it 
63.18 	for the benefit of and in trust for its members. For purposes of this section, the term 
63.19 	"postemployment benefits" means benefits giving rise to a liability under Statement No. 
63.20 	45 of the Governmental Accounting Standards Board. 

63.21 	Sec. 62. Minnesota Statutes 2008, section 480.181, subdivision 2, is amended to read:
63.22 		Subd. 2.Election to retain insurance and benefits; retirement. (a) Before a 
63.23 	person is transferred to state employment under this section, the person may elect to do 
63.24 	either or both of the following:
63.25 	(1) keep life insurance; hospital, medical, and dental insurance; and vacation and 
63.26 	sick leave benefits and accumulated time provided by the county instead of receiving 
63.27 	benefits from the state under the judicial branch personnel rules; or
63.28 	(2) remain a member of the general employees retirement plan of the Public 
63.29 	Employees Retirement Association or the Minneapolis employees retirement fund instead 
63.30 	of joining the general state employees retirement plan of the Minnesota State Retirement 
63.31 	System.
63.32 	Employees who make an election under clause (1) remain on the county payroll, 
63.33 	but the state shall reimburse the county on a quarterly basis for the salary and cost of the 
63.34 	benefits provided by the county. The state shall make the employer contribution to the 
64.1 	general employees retirement plan of the Public Employees Retirement Association or 
64.2 	the employer contribution under section 422A.101, subdivision 1a, to the Minneapolis 
64.3 	Employees Retirement Fund on behalf of employees who make an election under clause 
64.4 	(2). 
64.5 	(b) An employee who makes an election under paragraph (a), clause (1), may revoke 
64.6 	the election, once, at any time, but if the employee revokes the election, the employee 
64.7 	cannot make another election. An employee who makes an election under paragraph (a), 
64.8 	clause (2), may revoke the election at any time within six months after the person becomes 
64.9 	a state employee. Once an employee revokes this election, the employee cannot make 
64.10 	another election.
64.11 	(c) The Supreme Court, after consultation with the Judicial Council, the 
64.12 	commissioner of employee relations, and the executive directors of the Public Employees 
64.13 	Retirement Association and the Minnesota State Retirement Association, shall adopt 
64.14 	procedures for making elections under this section.
64.15 	(d) The Supreme Court shall notify all affected employees of the options available 
64.16 	under this section. The executive directors of the Public Employees Retirement 
64.17 	Association and the Minnesota State Retirement System shall provide counseling to 
64.18 	affected employees on the effect of making an election to remain a membermembers of 
64.19 	the general employees retirement plan of the Public Employees Retirement Association.

64.20 	Sec. 63. TRANSFER OF MERF EMPLOYEES; EMPLOYMENT 
64.21 	PREFERENCE.
 64.22 	(a) Full-time employees of the Minneapolis Employees Retirement Fund first 
64.23 	employed before June 30, 2008, and employed full-time by the Minneapolis Employees 
64.24 	Retirement Fund on June 29, 2010, are transferred to employment by the city of 
64.25 	Minneapolis on July 1, 2010, and retain their same level of compensation, if so employed, 
64.26 	for a period of 12 months.
64.27 	(b) After the expiration of the full compensation level period under paragraph (a), 
64.28 	a person described in paragraph (a) has a civil service employment preference with the 
64.29 	city of Minneapolis or with Special School District No. 1, Minneapolis, comparable 
64.30 	to a veteran's employment preference for employment in a position that is determined 
64.31 	appropriate by the chief human resources official of the employing unit based on the 
64.32 	person's education and employment experience. The preference is in effect for a period of 
64.33 	48 months following the expiration of the full compensation level period in paragraph (a).
64.34 	(c) If a person described in paragraph (a) is employed by an employing unit other 
64.35 	than the city of Minneapolis or Special School District No. 1, Minneapolis, before the 
65.1 	expiration of the preference period in paragraph (b), the provisions of paragraphs (a) and 
65.2 	(b) are no longer applicable to the person.

65.3 	Sec. 64. REVISOR'S INSTRUCTION.
 65.4 	In the next and future editions of Minnesota Statutes, the revisor of statutes shall 
65.5 	renumber Minnesota Statutes, section 422A.26, as Minnesota Statutes, section 353.855. 
65.6 	The revisor of statutes shall make conforming changes in Minnesota Statutes and 
65.7 	Minnesota Rules consistent with the renumbering.

65.8 	Sec. 65.  REPEALER.
 65.9 	Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 
65.10 	356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13, 13a, 17, and 
65.11 	18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 
65.12 	6, and 8; 422A.06; 422A.08, subdivisions 1, 5, and 5a; 422A.09; 422A.10; 422A.101, 
65.13 	subdivisions 1, 1a, 2, and 2a; 422A.11; 422A.12; 422A.13; 422A.14, subdivision 1; 
65.14 	422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 
65.15 	and 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, and 7; 422A.19; 422A.20; 422A.21; 
65.16 	422A.22, subdivisions 1, 3, 4, and 6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, and 
65.17 	12; 422A.231; 422A.24; and 422A.25, are repealed.

65.18 	Sec. 66. EFFECTIVE DATE.
 65.19 	(a) Section 35 is effective July 1, 2009.
65.20 	(b) Sections 1 to 34 and 36 to 65 are effective July 1, 2010.