1.1.................... moves to amend S.F. No. 2573; H.F. No. 2952, as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 3A.02, subdivision 4, is amended to read:
1.4    Subd. 4. Deferred annuities augmentation. (a) The deferred retirement allowance
1.5of any former legislator must be augmented as provided herein.
1.6    (b) The required reserves applicable to the deferred retirement allowance,
1.7determined as of the date the benefit begins to accrue using an appropriate mortality table
1.8and an interest assumption of six percent, must be augmented from the first of the month
1.9following the termination of active service, or July 1, 1973, whichever is later, to the first
1.10day of the month in which the allowance begins to accrue, at the following annually
1.11compounded rate or rates:
1.12(1) five percent until January 1, 1981;
1.13(2) three percent from January 1, 1981, or from the first day of the month following
1.14the termination of active service, whichever is later, until January 1 of the year in which
1.15the former legislator attains age 55 or until January 1, 2011, whichever is earlier; and
1.16(3) five percent from the period end date under clause (2) to until the effective date
1.17of retirement or until January 1, 2011, whichever is earlier; and
1.18(4) two percent after December 31, 2010.
1.19EFFECTIVE DATE.This section is effective the day following final enactment.

1.20    Sec. 2. Minnesota Statutes 2008, section 352.113, subdivision 1, is amended to read:
1.21    Subdivision 1. Age and service requirements. (a) An employee covered by the
1.22system, who is less than normal retirement age and who becomes totally and permanently
1.23disabled after three or more years of allowable service if employed before July 1, 2010, or
1.24after five or more years of allowable service if employed after June 30, 2010, is entitled to
1.25a disability benefit in an amount provided in subdivision 3.
1.26(b) If the disabled employee's state service has terminated at any time, the employee
1.27must have at least two years of allowable service after last becoming a state employee
1.28covered by the system.
1.29(c) Refunds may be repaid under section 352.23 before the effective accrual date of
1.30the disability benefit under subdivision 2.
1.31EFFECTIVE DATE.This section is effective the day following final enactment.

1.32    Sec. 3. Minnesota Statutes 2008, section 352.115, subdivision 1, is amended to read:
2.1    Subdivision 1. Age and service requirements. After separation from state service,
2.2any employee (1) who has attained the age of at least 55 years and who is entitled to
2.3credit for at least three years allowable service if employed before July 1, 2010, or after
2.4five or more years of allowable service if employed after June 30, 2010, or (2) who has
2.5received credit for at least 30 years allowable service regardless of age, is entitled upon
2.6application to a retirement annuity.
2.7EFFECTIVE DATE.This section is effective the day following final enactment.

2.8    Sec. 4. Minnesota Statutes 2008, section 352.12, subdivision 2, is amended to read:
2.9    Subd. 2. Surviving spouse benefit. (a) If an employee or former employee has
2.10credit for at least three years allowable service if the employee was employed before July
2.111, 2010, or for at least five years of allowable service if the employee was employed
2.12after June 30, 2010, and dies before an annuity or disability benefit has become payable,
2.13notwithstanding any designation of beneficiary to the contrary, the surviving spouse of the
2.14employee may elect to receive, in lieu of the refund with interest under subdivision 1, an
2.15annuity equal to the joint and 100 percent survivor annuity which the employee or former
2.16employee could have qualified for on the date of death.
2.17    (b) If the employee was under age 55 and has credit for at least 30 years of allowable
2.18service on the date of death, the surviving spouse may elect to receive a 100 percent joint
2.19and survivor annuity based on the age of the employee and surviving spouse on the date
2.20of death. The annuity is payable using the full early retirement reduction under section
2.21352.116, subdivision 1 , paragraph (a), to age 55 and one-half of the early retirement
2.22reduction from age 55 to the age payment begins.
2.23    (c) If the employee was under age 55 and has credit for at least three years of
2.24allowable service credit on the date of death if the employee was employed before July 1,
2.252010, or for at least five years of allowable service if the employee was employed after
2.26June 30, 2010, but did not yet qualify for retirement, the surviving spouse may elect
2.27to receive a 100 percent joint and survivor annuity based on the age of the employee
2.28and surviving spouse at the time of death. The annuity is payable using the full early
2.29retirement reduction under section 352.116, subdivision 1 or 1a, to age 55 and one-half of
2.30the early retirement reduction from age 55 to the age payment begins.
2.31    (d) The surviving spouse eligible for benefits under paragraph (a) may apply for the
2.32annuity at any time after the date on which the employee or former employee would
2.33have attained the required age for retirement based on the allowable service earned.
2.34The surviving spouse eligible for surviving spouse benefits under paragraph (b) or (c)
2.35may apply for the annuity at any time after the employee's death. The annuity must be
3.1computed under sections 352.115, subdivisions 1, 2, and 3, and 352.116, subdivisions 1,
3.21a, and 3 . Sections 352.22, subdivision 3, and 352.72, subdivision 2, apply to a deferred
3.3annuity or surviving spouse benefit payable under this subdivision. The annuity must cease
3.4with the last payment received by the surviving spouse in the lifetime of the surviving
3.5spouse, or upon expiration of a term certain benefit payment to a surviving spouse under
3.6subdivision 2a. An amount equal to the excess, if any, of the accumulated contributions
3.7credited to the account of the deceased employee in excess of the total of the benefits paid
3.8and payable to the surviving spouse must be paid to the deceased employee's or former
3.9employee's last designated beneficiary or, if none, as specified under subdivision 1.
3.10    (e) Any employee or former employee may request in writing, with the signed
3.11consent of the spouse, that this subdivision not apply and that payment be made only to a
3.12designated beneficiary as otherwise provided by this chapter.
3.13EFFECTIVE DATE.This section is effective the day following final enactment.

3.14    Sec. 5. Minnesota Statutes 2008, section 352.22, subdivision 2, is amended to read:
3.15    Subd. 2. Amount of refund. Except as provided in subdivision 3, the refund
3.16payable to a person who ceased to be a state employee by reason of a termination of state
3.17service is an amount equal to employee accumulated contributions plus interest at the rate
3.18of six percent per year compounded daily from the date that the contribution was made
3.19until June 30, 2011, or until the date on which the refund is paid, whichever is earlier, and
3.20at the rate of four percent per year compounded daily from the date that the contribution
3.21was made or from July 1, 2011, whichever is later, until the date on which the refund is
3.22paid. Included with the refund is any interest paid as part of repayment of a past refund,
3.23plus interest thereon from the date of repayment.
3.24EFFECTIVE DATE.This section is effective the day following final enactment.

3.25    Sec. 6. Minnesota Statutes 2008, section 352.22, subdivision 3, is amended to read:
3.26    Subd. 3. Deferred annuity. (a) An employee who has at least three years of
3.27allowable service if employed before July 1, 2010, or who has at least five years of
3.28allowable service if employed after June 30, 2010, when termination occurs may elect
3.29to leave the accumulated contributions in the fund and thereby be entitled to a deferred
3.30retirement annuity. The annuity must be computed under the law in effect when state
3.31service terminated, on the basis of the allowable service credited to the person before
3.32the termination of service.
4.1(b) An employee on layoff or on leave of absence without pay, except a leave of
4.2absence for health reasons, and who does not return to state service must have an annuity,
4.3deferred annuity, or other benefit to which the employee may become entitled computed
4.4under the law in effect on the employee's last working day.
4.5(c) No application for a deferred annuity may be made more than 60 days before
4.6the time the former employee reaches the required age for entitlement to the payment of
4.7the annuity. The deferred annuity begins to accrue no earlier than 60 days before the date
4.8the application is filed in the office of the system, but not (1) before the date on which
4.9the employee reaches the required age for entitlement to the annuity nor (2) before the
4.10day following the termination of state service in a position which is not covered by the
4.11retirement system.
4.12(d) Application for the accumulated contributions left on deposit with the fund may
4.13be made at any time following the date of the termination of service.
4.14EFFECTIVE DATE.This section is effective the day following final enactment.

4.15    Sec. 7. Minnesota Statutes 2008, section 352.72, subdivision 1, is amended to read:
4.16    Subdivision 1. Entitlement to annuity. (a) Any person who has been an employee
4.17covered by a retirement system listed in paragraph (b) is entitled when qualified to an
4.18annuity from each fund if total allowable service in all funds or in any two of these funds
4.19totals three or more years if employed before July 1, 2010, or totals five or more years
4.20if employed after June 30, 2010.
4.21(b) This section applies to the Minnesota State Retirement System, the Public
4.22Employees Retirement Association including the Public Employees Retirement
4.23Association police and fire fund, the Teachers Retirement Association, the State Patrol
4.24Retirement Association, or any other public employee retirement system in the state with
4.25a similar provision, except as noted in paragraph (c).
4.26(c) This section does not apply to other funds providing benefits for police officers
4.27or firefighters.
4.28(d) No portion of the allowable service upon which the retirement annuity from
4.29one fund is based shall be again used in the computation for benefits from another fund.
4.30No refund may have been taken from any one of these funds since service entitling the
4.31employee to coverage under the system or the employee's membership in any of the
4.32associations last terminated. The annuity from each fund must be determined by the
4.33appropriate provisions of the law except that the requirement that a person must have at
4.34least three a specific number of years of allowable service in the respective system or
4.35association does not apply for the purposes of this section if the combined service in two
5.1or more of these funds equals three or more years at least the longest period of allowable
5.2service of any of the applicable retirement plans.
5.3EFFECTIVE DATE.This section is effective the day following final enactment.

5.4    Sec. 8. Minnesota Statutes 2008, section 352.72, subdivision 2, is amended to read:
5.5    Subd. 2. Computation of deferred annuity. (a) The deferred annuity, if any,
5.6accruing under subdivision 1, or section 352.22, subdivision 3, must be computed as
5.7provided in section 352.22, subdivision 3, on the basis of allowable service before
5.8termination of state service and augmented as provided herein. The required reserves
5.9applicable to a deferred annuity or to an annuity for which a former employee was eligible
5.10but had not applied or to any deferred segment of an annuity must be determined as of
5.11the date the benefit begins to accrue and augmented by interest compounded annually
5.12from the first day of the month following the month in which the employee ceased to be
5.13a state employee, or July 1, 1971, whichever is later, to the first day of the month in
5.14which the annuity begins to accrue. The rates of interest used for this purpose must be
5.15five percent compounded annually until January 1, 1981, and three percent compounded
5.16annually thereafter until January 1 of the year following the year in which the former
5.17employee attains age 55 or until January 1, 2011, whichever is earlier, and from that date
5.18the January 1 next following the attainment of age 55 to the effective date of retirement or
5.19until January 1, 2011, whichever is earlier, the rate is five percent compounded annually if
5.20the employee became an employee before July 1, 2006, and at 2.5 percent compounded
5.21annually until January 1, 2011, if the employee becomes an employee after June 30, 2006,
5.22and two percent compounded annually after December 31, 2010, irrespective of when the
5.23employee became a state employee. If a person has more than one period of uninterrupted
5.24service, the required reserves related to each period must be augmented by interest under
5.25this subdivision. The sum of the augmented required reserves so determined is the present
5.26value of the annuity. "Uninterrupted service" for the purpose of this subdivision means
5.27periods of covered employment during which the employee has not been separated from
5.28state service for more than two years. If a person repays a refund, the service restored by
5.29the repayment must be considered continuous with the next period of service for which the
5.30employee has credit with this system. The formula percentages used for each period of
5.31uninterrupted service must be those applicable to a new employee. The mortality table
5.32and interest assumption used to compute the annuity must be those in effect when the
5.33employee files application for annuity. This section does not reduce the annuity otherwise
5.34payable under this chapter.
6.1(b) The retirement annuity or disability benefit of, or the survivor benefit payable on
6.2behalf of, a former state employee who terminated service before July 1, 1997, which is
6.3not first payable until after June 30, 1997, must be increased on an actuarial equivalent
6.4basis to reflect the change in the postretirement interest rate actuarial assumption under
6.5section 356.215, subdivision 8, from five percent to six percent under a calculation
6.6procedure and the tables adopted by the board and approved by the actuary retained under
6.7section 356.214.
6.8EFFECTIVE DATE.This section is effective the day following final enactment.

6.9    Sec. 9. Minnesota Statutes 2009 Supplement, section 352.75, subdivision 4, is
6.10amended to read:
6.11    Subd. 4. Existing deferred retirees. Any former member of the former
6.12Metropolitan Transit Commission-Transit Operating Division employees retirement
6.13fund is entitled to a retirement annuity from the Minnesota State Retirement System if
6.14the employee:
6.15(1) is not an active employee of the Transit Operating Division of the former
6.16Metropolitan Transit Commission on July 1, 1978; (2) has at least ten years of active
6.17continuous service with the Transit Operating Division of the former Metropolitan
6.18Transit Commission as defined by the former Metropolitan Transit Commission-Transit
6.19Operating Division employees retirement plan document in effect on December 31, 1977;
6.20(3) has not received a refund of contributions; (4) has not retired or begun receiving an
6.21annuity or benefit from the former Metropolitan Transit Commission-Transit Operating
6.22Division employees retirement fund; (5) is at least 55 years old; and (6) submits a valid
6.23application for a retirement annuity to the executive director of the Minnesota State
6.24Retirement System.
6.25The person is entitled to a retirement annuity in an amount equal to the normal
6.26old age retirement allowance calculated under the former Metropolitan Transit
6.27Commission-Transit Operating Division employees retirement fund plan document in
6.28effect on December 31, 1977, subject to an early retirement reduction or adjustment in
6.29amount on account of retirement before the normal retirement age specified in that former
6.30Metropolitan Transit Commission-Transit Operating Division employees retirement fund
6.31plan document.
6.32The deferred retirement annuity of any person to whom this subdivision applies
6.33must be augmented. The required reserves applicable to the deferred retirement annuity,
6.34determined as of the date the allowance begins to accrue using an appropriate mortality
6.35table and an interest assumption of five percent, must be augmented by interest at the
7.1rate of five percent per year compounded annually from January 1, 1978, to January 1,
7.21981, and three percent per year compounded annually from January 1, 1981, until the
7.3date that the annuity begins to accrue or June 30, 2010, whichever is earlier, and two
7.4percent after June 30, 2010, to the first day of the month in which the annuity begins to
7.5accrue. After the commencement of the retirement annuity, the annuity is eligible for
7.6postretirement adjustments under section 356.415. On applying for a retirement annuity
7.7under this subdivision, the person is entitled to elect a joint and survivor optional annuity
7.8under section 352.116, subdivision 3.
7.9EFFECTIVE DATE.This section is effective the day following final enactment.

7.10    Sec. 10. Minnesota Statutes 2008, section 352.93, subdivision 1, is amended to read:
7.11    Subdivision 1. Basis of annuity; when to apply. After separation from state
7.12service, an employee covered under section 352.91 who has reached age 55 years and has
7.13credit for at least three years of covered correctional service or a combination of covered
7.14correctional service and general state employees state retirement plan allowable service
7.15if first employed as a state employee before July 1, 2010, or has credit for at least ten
7.16years of covered correctional service or a combination of covered correctional service
7.17and general state employees retirement plan allowable service if first employed as a state
7.18employee after June 30, 2010, is entitled upon application to a retirement annuity under
7.19this section, based only on covered correctional employees' service. Application may be
7.20made no earlier than 60 days before the date the employee is eligible to retire by reason of
7.21both age and service requirements.
7.22EFFECTIVE DATE.This section is effective the day following final enactment.

7.23    Sec. 11. Minnesota Statutes 2008, section 352.93, subdivision 2a, is amended to read:
7.24    Subd. 2a. Early retirement. Any covered correctional employee who becomes at
7.25least 50 years old and who has at least three years of allowable service if first employed
7.26as a correctional state employee before July 1, 2010, or has credit for at least ten years
7.27of allowable service if first employed as a correctional state employee after June 30,
7.282010, is entitled upon application to a reduced retirement annuity equal to the annuity
7.29calculated under subdivision 2, reduced by two-tenths of one percent for each month that
7.30the correctional employee is under age 55 at the time of retirement if first employed as
7.31a correctional state employee before July 1, 2010, and if retired before July 1, 2015, or
7.32reduced by 0.417 percent for each month that the correctional employee is under age 55
7.33at the time of retirement if first employed as a correctional state employee after June 30,
8.12010, or if first employed as a correctional state employee before July 1, 2010, and if
8.2retired after June 30, 2015.
8.3EFFECTIVE DATE.This section is effective the day following final enactment.

8.4    Sec. 12. Minnesota Statutes 2008, section 352.93, subdivision 3a, is amended to read:
8.5    Subd. 3a. Optional annuities. The board may establish optional annuity forms to
8.6pay a higher amount from the date of retirement until an employee is first eligible to draw
8.7Social Security benefits, reaches age 65, or up to reaches the age the employee is eligible
8.8to receive unreduced Social Security benefits, at which time the monthly benefits must be
8.9reduced. The optional annuity forms must be actuarially equivalent to the normal single
8.10life annuity form provided in subdivision 2. The optional annuity forms must be approved
8.11certified as actuarially equivalent by the actuary retained under section 356.214.
8.12EFFECTIVE DATE.This section is effective the day following final enactment.

8.13    Sec. 13. Minnesota Statutes 2008, section 352.931, subdivision 1, is amended to read:
8.14    Subdivision 1. Surviving spouse benefit. (a) If the correctional employee was at
8.15least age 50, has credit for at least three years of allowable service if first employed as
8.16a correctional state employee before July 1, 2010, or has credit for at least ten years of
8.17allowable service if first employed as a correctional state employee after June 30, 2010,
8.18and dies before an annuity or disability benefit has become payable, notwithstanding any
8.19designation of beneficiary to the contrary, the surviving spouse of the employee may
8.20elect to receive, in lieu of the refund under section 352.12, subdivision 1, an annuity for
8.21life equal to the joint and 100 percent survivor annuity which the employee could have
8.22qualified for had the employee terminated service on the date of death. The election
8.23may be made at any time after the date of death of the employee. The surviving spouse
8.24benefit begins to accrue as of the first of the month next following the date on which
8.25the application for the benefit was filed.
8.26    (b) If the employee was under age 50, dies, and had credit for at least three years
8.27of allowable service credit on the date of death if first employed as a correctional state
8.28employee before July 1, 2010, or had credit for at least ten years of allowable service on
8.29the date of death if first employed as a correctional state employee after June 30, 2010, but
8.30did not yet qualify for retirement, the surviving spouse may elect to receive a 100 percent
8.31joint and survivor annuity based on the age of the employee and surviving spouse at the
8.32time of death. The annuity is payable using the early retirement reduction under section
8.33352.93, subdivision 2a , to age 50, and one-half of the early retirement reduction from age
9.150 to the age payment begins. The surviving spouse eligible for surviving spouse benefits
9.2under this paragraph may apply for the annuity at any time after the employee's death.
9.3Sections 352.22, subdivision 3, and 352.72, subdivision 2, apply to a deferred annuity or
9.4surviving spouse benefit payable under this subdivision.
9.5    (c) The annuity must cease with the last payment received by the surviving spouse
9.6in the lifetime of the surviving spouse. Any employee may request in writing, with the
9.7signed consent of the spouse, that this subdivision not apply and that payment be made
9.8only to a designated beneficiary as otherwise provided by this chapter.
9.9EFFECTIVE DATE.This section is effective the day following final enactment.

9.10    Sec. 14. Minnesota Statutes 2009 Supplement, section 352.95, subdivision 2, is
9.11amended to read:
9.12    Subd. 2. Regular disability; computation of benefit. A covered correctional
9.13employee who was hired before July 1, 2009, after rendering at least one year of covered
9.14correctional service, or a covered correctional employee who was first hired after June
9.1530, 2009, after rendering at least three years of covered correctional plan service if first
9.16employed as a correctional state employee before July 1, 2010, or after rendering at least
9.17ten years of covered correctional plan service if first employed as a correctional state
9.18employee after June 30, 2010, and who is determined to have a regular disability, physical
9.19or psychological, as defined under section 352.01, subdivision 17c, is entitled to a regular
9.20disability benefit. The regular disability benefit must be based on covered correctional
9.21service only. The regular disability benefit must be computed as provided in section
9.22352.93, subdivisions 1 and 2 . The regular disability benefit of a covered correctional
9.23employee who was first hired before July 1, 2009, and who is determined to have a regular
9.24disability, physical or psychological, under this subdivision must be computed as though
9.25the employee had at least 15 years of covered correctional service.
9.26EFFECTIVE DATE.This section is effective the day following final enactment.

9.27    Sec. 15. Minnesota Statutes 2008, section 352B.02, as amended by Laws 2009, chapter
9.28101, article 2, section 109; and chapter 169, article 1, section 23; article 2, section 16; and
9.29article 4, sections 3 and 4, is amended to read:
9.30352B.02 STATE PATROL RETIREMENT FUND.
9.31    Subdivision 1. Fund created; membership. A State Patrol retirement fund
9.32is established. Its membership consists of all persons defined in section 352B.011,
9.33subdivision 10 .
10.1    Subd. 1a. Member contributions. (a) The member contribution is 10.40 percent
10.2the following percentage of the member's salary.:

10.3 10.4		(1) before the first day of the first pay period beginning after July 1, 2011	10.40 percent
10.5 10.6		(2) on or after the first day of the first pay period beginning after July 1, 2011	11.20 percent

10.7(b) These contributions must be made by deduction from salary as provided in
10.8section 352.04, subdivision 4.
10.9    Subd. 1b. Salary deductions. Member contribution amounts must be deducted each
10.10pay period by the department head, who shall have the total amount of the deductions paid
10.11to the commissioner of management and budget for deposit in the State Patrol retirement
10.12fund, and have a detailed report of all deductions made each pay period to the executive
10.13director of the Minnesota State Retirement System.
10.14    Subd. 1c. Employer contributions. (a) In addition to member contributions,
10.15department heads shall pay a sum equal to 15.60 percent the specified percentage of the
10.16salary upon which deductions were made, which constitutes the employer contribution
10.17to the fund. as follows:

10.18 10.19		(1) before the first day of the first pay period beginning after July 1, 2011	15.60 percent
10.20 10.21		(2) on or after the first day of the first pay period beginning after July 1, 2011	16.80 percent

10.22(b) Department contributions must be paid out of money appropriated to departments
10.23for this purpose.
10.24    Subd. 1d. Additional employer contributions. (a) In addition to the regular
10.25employer contribution under subdivision 1c, department heads shall pay a sum equal to
10.26ten percent of the salary upon which member contribution deductions were made, which is
10.27the additional employer contribution to the fund.
10.28(b) Department additional employer contributions must be paid from departmental
10.29appropriations or revenue.
10.30    Subd. 1d 1e. Fund revenue and expenses. The amounts provided for in this section
10.31must be credited to the State Patrol retirement fund. All money received must be deposited
10.32by the commissioner of management and budget in the State Patrol retirement fund. The
10.33fund must be used to pay the administrative expenses of the retirement fund, and the
10.34benefits and annuities provided in this chapter.
10.35    Subd. 1e 1f. Audit; regular actuarial valuation; supplemental valuations. (a)
10.36The legislative auditor shall audit the fund.
11.1(b) Any actuarial valuation of the fund required under section 356.215 must be
11.2prepared by the actuary retained under section 356.214.
11.3(c) Any approved actuary retained by the executive director under section 352.03,
11.4subdivision 6 , may perform actuarial valuations and experience studies to supplement
11.5those performed by the actuary retained under section 356.214. Any supplemental
11.6actuarial valuation or experience studies must be filed with the executive director of the
11.7Legislative Commission on Pensions and Retirement.
11.8EFFECTIVE DATE.This section is effective the day following final enactment.

11.9    Sec. 16. Minnesota Statutes 2008, section 352B.08, subdivision 1, is amended to read:
11.10    Subdivision 1. Eligibility; when to apply; accrual. (a) Every member who is
11.11credited with three or more years of allowable service if first employed before July 1,
11.122010, or with at least five years of allowable service if first employed after June 30, 2010,
11.13is entitled to separate from state service and upon becoming 50 years old, is entitled to
11.14receive a life annuity, upon separation from state service.
11.15(b) Members shall must apply for an annuity in a form and manner prescribed by the
11.16executive director.
11.17(c) No application may be made more than 90 days before the date the member is
11.18eligible to retire by reason of both age and service requirements.
11.19(d) An annuity begins to accrue no earlier than 180 days before the date the
11.20application is filed with the executive director.
11.21EFFECTIVE DATE.This section is effective the day following final enactment.

11.22    Sec. 17. Minnesota Statutes 2008, section 352B.08, subdivision 2a, is amended to read:
11.23    Subd. 2a. Early retirement. Any member who has become at least 50 years old and
11.24who has at least three years of allowable service if first employed before July 1, 2010, or
11.25who has at least five years of allowable service if first employed after June 30, 2010, is
11.26entitled upon application to a reduced retirement annuity equal to the annuity calculated
11.27under subdivision 2, reduced by one-tenth of one percent for each month that the member
11.28is under age 55 at the time of retirement if first employed before July 1, 2010, or reduced
11.29by two-tenths of one percent for each month that the member is under age 55 at the time of
11.30retirement if first employed after June 30, 2010.
11.31EFFECTIVE DATE.This section is effective the day following final enactment.

11.32    Sec. 18. Minnesota Statutes 2008, section 352B.11, subdivision 2b, is amended to read:
12.1    Subd. 2b. Surviving spouse benefit eligibility. (a) If an active member with three or
12.2more years of allowable service if first employed before July 1, 2010, or with at least five
12.3years of allowable service if first employed after June 30, 2010, dies before attaining age
12.455, the surviving spouse is entitled to the benefit specified in subdivision 2c, paragraph (b).
12.5(b) If an active member with less than three years of allowable service if first
12.6employed before July 1, 2010, or with fewer than five years of allowable service if first
12.7employed after June 30, 2010, dies at any age, the surviving spouse is entitled to receive
12.8the benefit specified in subdivision 2c, paragraph (c).
12.9(c) If an active member with three or more years of allowable service if first
12.10employed before July 1, 2010, or with at least five years of allowable service if first
12.11employed after June 30, 2010, dies on or after attaining exact age 55, the surviving spouse
12.12is entitled to receive the benefits specified in subdivision 2c, paragraph (d).
12.13(d) If a disabilitant dies while receiving a disability benefit under section 352B.10 or
12.14before the benefit under that section commenced, and an optional annuity was not elected
12.15under section 352B.10, subdivision 5, the surviving spouse is entitled to receive the benefit
12.16specified in subdivision 2c, paragraph (b).
12.17(e) If a former member with three or more years of allowable service if first
12.18employed before July 1, 2010, or with at least five years of allowable service if first
12.19employed after June 30, 2010, who terminated from service and has not received a refund
12.20or commenced receipt of any other benefit provided by this chapter, dies, the surviving
12.21spouse is entitled to receive the benefit specified in subdivision 2c, paragraph (e).
12.22(f) If a former member with less than three years of allowable service if first
12.23employed before July 1, 2010, or with fewer than five years of allowable service if first
12.24employed after June 30, 2010, who terminated from service and has not received a refund
12.25or commenced receipt of any other benefit, if applicable, provided by this chapter, dies, the
12.26surviving spouse is entitled to receive the refund specified in subdivision 2c, paragraph (f).
12.27EFFECTIVE DATE.This section is effective the day following final enactment.

12.28    Sec. 19. Minnesota Statutes 2008, section 352B.30, subdivision 1, is amended to read:
12.29    Subdivision 1. Entitlement to annuity. Any person who has been an employee
12.30covered by the Minnesota State Retirement System, or a member of the Public Employees
12.31Retirement Association including the Public Employees Retirement Association Police
12.32and Fire Fund, or the Teachers Retirement Association, or the State Patrol retirement fund,
12.33or any other public employee retirement system in Minnesota having a like provision but
12.34excluding all other funds providing benefits for police or firefighters is entitled when
12.35qualified to an annuity from each fund if total allowable service in all funds or in any two
13.1of these funds totals three or more the number of years of allowable service required by
13.2the applicable retirement plan with the longest vesting period for the person. No part of
13.3the allowable service upon which the retirement annuity from one fund is based may
13.4again be used in the computation for benefits from another fund. The member must not
13.5have taken a refund from any one of these funds since service entitling the member to
13.6coverage under the system or membership in any of the associations last terminated.
13.7The annuity from each fund must be determined by the appropriate law except that the
13.8requirement that a person must have at least three a specific number of years allowable
13.9service in the respective system or association does not apply for the purposes of this
13.10section if the combined service in two or more of these funds equals three or more the
13.11number of years of allowable service required by the applicable retirement plan with
13.12the longest vesting period for the person.
13.13EFFECTIVE DATE.This section is effective the day following final enactment.

13.14    Sec. 20. Minnesota Statutes 2008, section 352B.30, subdivision 2, is amended to read:
13.15    Subd. 2. Computation of deferred annuity. Deferred annuities must be computed
13.16according to this chapter on the basis of allowable service before termination of service
13.17and augmented as provided in this chapter. The required reserves applicable to a deferred
13.18annuity must be augmented by interest compounded annually from the first day of the
13.19month following the month in which the member terminated service, or July 1, 1971,
13.20whichever is later, to the first day of the month in which the annuity begins to accrue. The
13.21rates of interest used for this purpose shall must be five percent per year compounded
13.22annually until January 1, 1981, and after that date three percent per year compounded
13.23annually after January 1, 1981, until January 1, 2011, if the employee became an employee
13.24before July 1, 2006, and at 2.5 percent compounded annually if the employee becomes
13.25an employee after June 30, 2006, and two percent per year compounded annually after
13.26December 31, 2010, irrespective of when the employee was first employed. The mortality
13.27table and interest assumption used to compute the annuity shall must be those in effect
13.28when the member files application for annuity.
13.29EFFECTIVE DATE.This section is effective the day following final enactment.

13.30    Sec. 21. Minnesota Statutes 2008, section 352F.07, is amended to read:
13.31352F.07 EFFECT ON REFUND.
13.32Notwithstanding any provision of chapter 352 to the contrary, terminated hospital
13.33employees may receive a refund of employee accumulated contributions plus interest
14.1at the rate of six percent per year compounded annually in accordance with Minnesota
14.2Statutes 1994, section 352.22, subdivision 2, at any time after the transfer of employment
14.3to Fairview, University of Minnesota Physicians, or University Affiliated Family
14.4Physicians. If a terminated hospital employee has received a refund from a pension plan
14.5enumerated in section 356.30, subdivision 3, the person may not repay that refund unless
14.6the person again becomes a member of one of those enumerated plans and complies
14.7with section 356.30, subdivision 2.
14.8EFFECTIVE DATE.This section is effective the day following final enactment.

14.9    Sec. 22. Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision
14.10to read:
14.11    Subd. 47. Vesting. (a) "Vesting" means obtaining a nonforfeitable entitlement
14.12to an annuity or benefit from a retirement plan administered by the Public Employees
14.13Retirement Association by having credit for sufficient allowable service under paragraph
14.14(b) or (c), whichever applies.
14.15(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan
14.16member of the general employees retirement plan of the Public Employees Retirement
14.17Association:
14.18(1) a member who first became a public employee before July 1, 2010, is vested
14.19when the person has accrued credit for not less than three years of allowable service as
14.20defined under subdivision 16; and
14.21(2) a member who first becomes a public employee after June 30, 2010, is vested
14.22when the person has accrued credit for not less than five years of allowable service
14.23as defined under subdivision 16.
14.24(c) For purposes of qualifying for an annuity or benefit as a member of the police
14.25and fire plan or a member of the local government correctional employees retirement plan:
14.26(1) a member who first became a public employee before July 1, 2010, is vested
14.27when the person has accrued credit for not less than three years of allowable service as
14.28defined under subdivision 16; and
14.29(2) a member who first becomes a public employee after June 30, 2010, is vested
14.30at the following percentages when the person has accrued credited allowable service as
14.31defined under subdivision 16, as follows:
14.32(i) 50 percent after five years;
14.33(ii) 60 percent after six years;
14.34(iii) 70 percent after seven years;
14.35(iv) 80 percent after eight years;
15.1(v) 90 percent after nine years; and
15.2(vi) 100 percent after ten years.
15.3EFFECTIVE DATE.This section is effective the day following final enactment.

15.4    Sec. 23. Minnesota Statutes 2009 Supplement, section 353.27, subdivision 2, is
15.5amended to read:
15.6    Subd. 2. Employee contribution. (a) For a basic member, the employee
15.7contribution is 9.10 percent of salary. For a coordinated member, the employee
15.8contribution is six percent the following percentage of salary plus any contribution rate
15.9adjustment under subdivision 3b.:

15.10		Effective before January 1, 2011	6.00
15.11		Effective after December 31, 2010	6.25

15.12(b) These contributions must be made by deduction from salary as defined in section
15.13353.01, subdivision 10 , in the manner provided in subdivision 4. If any portion of a
15.14member's salary is paid from other than public funds, the member's employee contribution
15.15must be based on the total salary received by the member from all sources.
15.16EFFECTIVE DATE.This section is effective the day following final enactment.

15.17    Sec. 24. Minnesota Statutes 2009 Supplement, section 353.27, subdivision 3, is
15.18amended to read:
15.19    Subd. 3. Employer contribution. (a) For a basic member, the employer
15.20contribution is 9.10 percent of salary. For a coordinated member, the employer
15.21contribution is six percent the following percentage of salary plus any contribution rate
15.22adjustment under subdivision 3b.:

15.23		Effective before January 1, 2011	6.00
15.24		Effective after December 31, 2010	6.25

15.25(b) This contribution must be made from funds available to the employing
15.26subdivision by the means and in the manner provided in section 353.28.
15.27EFFECTIVE DATE.This section is effective the day following final enactment.

15.28    Sec. 25. Minnesota Statutes 2008, section 353.27, subdivision 3b, is amended to read:
15.29    Subd. 3b. Change in employee and employer contributions in certain instances.
15.30(a) For purposes of this section,:
16.1(1) a contribution sufficiency exists if the total of the employee contribution under
16.2subdivision 2, the employer contribution under subdivision 3, the additional employer
16.3contribution under subdivision 3a, and any additional contribution previously imposed
16.4under this subdivision exceeds the total of the normal cost, the administrative expenses,
16.5and the amortization contribution of the retirement plan as reported in the most recent
16.6actuarial valuation of the retirement plan prepared by the actuary retained under section
16.7356.214 and prepared under section 356.215 and the standards for actuarial work of the
16.8Legislative Commission on Pensions and Retirement. For purposes of this section,; and
16.9(2) a contribution deficiency exists if the total of the employee contributions under
16.10subdivision 2, the employer contributions under subdivision 3, the additional employer
16.11contribution under subdivision 3a, and any additional contribution previously imposed
16.12under this subdivision is less than the total of the normal cost, the administrative expenses,
16.13and the amortization contribution of the retirement plan as reported in the most recent
16.14actuarial valuation of the retirement plan prepared by the actuary retained under section
16.15356.214 and prepared under section 356.215 and the standards for actuarial work of the
16.16Legislative Commission on Pensions and Retirement.
16.17(b) Employee and employer contributions under subdivisions 2 and 3 must be
16.18adjusted:
16.19(1) if, on or after July 1, 2010, the regular actuarial valuations valuation of the
16.20general employees retirement plan of the Public Employees Retirement Association under
16.21section 356.215 indicate indicates that there is a contribution sufficiency under paragraph
16.22(a) equal to or greater than 0.5 one percent of covered payroll and that the sufficiency
16.23has existed for at least two consecutive years, the coordinated program employee and
16.24employer contribution rates must be decreased as determined under paragraph (c) to a
16.25level such that the sufficiency equals is no more greater than 0.25 one percent of covered
16.26payroll based on the most recent actuarial valuation; or
16.27(2) if, on or after July 1, 2010, the regular actuarial valuations valuation of the
16.28general employees retirement plan of the Public Employees Retirement Association under
16.29section 356.215 indicate indicates that there is a contribution deficiency equal to or greater
16.30than 0.5 percent of covered payroll and that the deficiency has existed for at least two
16.31consecutive years, the coordinated program employee and employer contribution rates
16.32must be increased as determined under paragraph (c) (d) to a level such that no deficiency
16.33exists based on the most recent actuarial valuation.
16.34(c) The contribution rate increase or decrease must be determined by the executive
16.35director of the Public Employees Retirement Association, must be reported to the chair
16.36and the executive director of the Legislative Commission on Pensions and Retirement
17.1on or before the next February 1, and, if the Legislative Commission on Pensions and
17.2Retirement does not recommend against the rate change or does not recommend a
17.3modification in the rate change, is effective on the next July 1 following the determination
17.4by the executive director that a contribution deficiency or sufficiency has existed for
17.5two consecutive fiscal years based on the most recent actuarial valuations under section
17.6356.215. If the actuarially required contribution exceeds or is less than the total support
17.7provided by the combined employee and employer contribution rates under subdivisions
17.82, 3, and 3a, by more than 0.5 one percent of covered payroll, the coordinated program
17.9employee and employer contribution rates under subdivisions 2 and 3 must be adjusted
17.10decreased incrementally over one or more years by no more than 0.25 percent of pay each
17.11for employee and employer matching contribution rates to a level such that there remains
17.12a contribution sufficiency of no more than 0.25 at least one percent of covered payroll. No
17.13contribution rate decrease may be made until at least two years have elapsed since any
17.14adjustment under this subdivision has been fully implemented.
17.15(d) No If the actuarially required contribution exceeds the total support provided
17.16by the combined employee and employer contribution rates under subdivisions 2, 3, and
17.173a, the employee and matching employer contribution rates must be increased equally to
17.18eliminate that contribution deficiency. If the contribution deficiency is:
17.19(1) less than two percent, the incremental adjustment increase may exceed be up
17.20to 0.25 percent for either the coordinated program employee and matching employer
17.21contribution rates per year in which any adjustment is implemented. A contribution rate
17.22adjustment under this subdivision must not be made until at least two years have passed
17.23since fully implementing a previous adjustment under this subdivision.;
17.24(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase
17.25may be up to 0.5 percent for the employee and matching employer contribution rates; or
17.26(3) greater than four percent, the incremental increase may be up to 0.75 percent for
17.27the employee and matching employer contribution.
17.28(e) Any recommended adjustment to the contribution rates must be reported
17.29to the chair and the executive director of the Legislative Commission on Pensions
17.30and Retirement by January 15 following receipt of the most recent annual actuarial
17.31valuation prepared under section 356.215. If the Legislative Commission on Pensions
17.32and Retirement does not recommend against the rate change or does not recommend a
17.33modification in the rate change, the recommended adjustment becomes effective on the
17.34first day of the first full payroll period in the fiscal year following receipt of the most
17.35recent actuarial valuation that gave rise to the adjustment.
18.1(f) A contribution sufficiency of up to one percent of covered payroll must be held in
18.2reserve to be used to offset any future actuarially required contributions that are more than
18.3the total combined employee and employer contributions under subdivisions 2, 3, and 3a.
18.4(g) Before any reduction in contributions to eliminate a sufficiency in excess of one
18.5percent of covered pay may be recommended, the executive director must review any
18.6need for a change in actuarial assumptions, as recommended by the actuary retained under
18.7section 356.214 in the most recent experience study of the general employees retirement
18.8plan prepared under section 356.215 and the standards for actuarial work promulgated by
18.9the Legislative Commission on Pensions and Retirement that may result in an increase
18.10in the actuarially required contribution and must report to the Legislative Commission
18.11on Pensions and Retirement any recommendation by the board to use the sufficiency
18.12exceeding one percent of covered payroll to offset the impact of an actuarial assumption
18.13change recommended by the actuary retained under section 356.214, subdivision 1, and
18.14reviewed by the actuary retained by the commission under section 356.214, subdivision 4.
18.15(h) No contribution sufficiency in excess of one percent of covered pay may be
18.16proposed to be used to increase benefits, and no benefit increase may be proposed that
18.17would initiate an automatic adjustment to increase contributions under this subdivision.
18.18Any proposed benefit improvement must include a recommendation, prepared by the
18.19actuary retained under section 356.214, subdivision 1, and reviewed by the actuary
18.20retained by the Legislative Commission on Pensions and Retirement as provided under
18.21section 356.214, subdivision 4, on how the benefit modification will be funded.
18.22EFFECTIVE DATE.This section is effective the day following final enactment.

18.23    Sec. 26. Minnesota Statutes 2008, section 353.29, subdivision 1, is amended to read:
18.24    Subdivision 1. Age and allowable service requirements. Upon termination of
18.25membership, a person who has attained normal retirement age and who received credit for
18.26not less than three years of allowable service is vested under section 353.01, subdivision
18.2747, is entitled upon application to a retirement annuity. The retirement annuity is known
18.28as the "normal" retirement annuity.
18.29EFFECTIVE DATE.This section is effective the day following final enactment.

18.30    Sec. 27. Minnesota Statutes 2008, section 353.30, subdivision 1c, is amended to read:
18.31    Subd. 1c. Pre-July 1, 1989, members: early retirement. Upon termination of
18.32public service, a person who first became a public employee or a member of a pension
18.33fund listed in section 356.30, subdivision 3, before July 1, 1989, who has become at least
19.155 years old but not normal retirement age, and has received credit for at least three years
19.2of allowable service is vested under section 353.01, subdivision 47, is entitled, upon
19.3application, to a retirement annuity in an amount equal to the normal annuity provided in
19.4section 353.29, subdivision 3, paragraph (a), reduced by one-quarter of one percent for
19.5each month that the member is under normal retirement age at the time of retirement.
19.6EFFECTIVE DATE.This section is effective the day following final enactment.

19.7    Sec. 28. Minnesota Statutes 2008, section 353.32, subdivision 1, is amended to read:
19.8    Subdivision 1. Before retirement. If a member or former member who terminated
19.9public service dies before retirement or before receiving any retirement annuity and no
19.10other payment of any kind is or may become payable to any person, a refund shall be paid
19.11is payable to the designated beneficiary or, if there be none, to the surviving spouse,
19.12or, if none, to the legal representative of the decedent's estate. Such The refund shall
19.13must be in an amount equal to accumulated deductions plus annual compound interest
19.14thereon at the rate of six percent per annum compounded annually specified in section
19.15353.34, subdivision 2, and less the sum of any disability or survivor benefits, if any, that
19.16may have been paid by the fund; provided that a survivor who has a right to benefits
19.17pursuant to under section 353.31 may waive such benefits in writing, except such benefits
19.18for a dependent child under the age of 18 years may only be waived pursuant to under an
19.19order of the district court.
19.20EFFECTIVE DATE.This section is effective the day following final enactment.

19.21    Sec. 29. Minnesota Statutes 2008, section 353.32, subdivision 1a, is amended to read:
19.22    Subd. 1a. Surviving spouse optional annuity. (a) If a member or former member
19.23who has credit for not less than three years of allowable service is vested under section
19.24353.01, subdivision 47, and who dies before the annuity or disability benefit begins to
19.25accrue under section 353.29, subdivision 7, or 353.33, subdivision 2, notwithstanding any
19.26designation of beneficiary to the contrary, the surviving spouse may elect to receive,
19.27instead of a refund with interest under subdivision 1, or surviving spouse benefits otherwise
19.28payable under section 353.31, an annuity equal to a 100 percent joint and survivor annuity
19.29computed consistent with section 353.30, subdivision 1a, 1c, or 5, whichever is applicable.
19.30    (b) If a member first became a public employee or a member of a pension fund listed
19.31in section 356.30, subdivision 3, before July 1, 1989, and has credit for at least 30 years
19.32of allowable service on the date of death, the surviving spouse may elect to receive a
19.33100 percent joint and survivor annuity computed using section 353.30, subdivision 1b,
20.1except that the early retirement reduction under that provision will be applied from age
20.262 back to age 55 and one-half of the early retirement reduction from age 55 back to
20.3the age payment begins.
20.4    (c) If a member who was under age 55 and has credit for at least three years of
20.5allowable service who is vested under section 353.01, subdivision 47, dies, but did not
20.6qualify for retirement on the date of death, the surviving spouse may elect to receive a
20.7100 percent joint and survivor annuity computed using section 353.30, subdivision 1c or
20.85, as applicable, except that the early retirement reduction specified in the applicable
20.9subdivision will be applied to age 55 and one-half of the early retirement reduction from
20.10age 55 back to the age payment begins.
20.11    (d) Notwithstanding the definition of surviving spouse in section 353.01, subdivision
20.1220 , a former spouse of the member, if any, is entitled to a portion of the monthly surviving
20.13spouse optional annuity if stipulated under the terms of a marriage dissolution decree filed
20.14with the association. If there is no surviving spouse or child or children, a former spouse
20.15may be entitled to a lump-sum refund payment under subdivision 1, if provided for in a
20.16marriage dissolution decree, but not a monthly surviving spouse optional annuity, despite
20.17the terms of a marriage dissolution decree filed with the association.
20.18    (e) The surviving spouse eligible for surviving spouse benefits under paragraph (a)
20.19may apply for the annuity at any time after the date on which the deceased employee
20.20would have attained the required age for retirement based on the employee's allowable
20.21service. The surviving spouse eligible for surviving spouse benefits under paragraph (b) or
20.22(c) may apply for an annuity any time after the member's death.
20.23    (f) Sections 353.34, subdivision 3, and 353.71, subdivision 2, apply to a deferred
20.24annuity or surviving spouse benefit payable under this subdivision.
20.25    (g) An amount equal to any excess of the accumulated contributions that were
20.26credited to the account of the deceased employee over and above the total of the annuities
20.27paid and payable to the surviving spouse must be paid to the surviving spouse's estate.
20.28    (h) A member may specify in writing, with the signed consent of the spouse, that
20.29this subdivision does not apply and that payment may be made only to the designated
20.30beneficiary as otherwise provided by this chapter. The waiver of a surviving spouse
20.31annuity under this section does not make a dependent child eligible for benefits under
20.32subdivision 1c.
20.33    (i) If the deceased member or former member first became a public employee or a
20.34member of a public pension plan listed in section 356.30, subdivision 3, on or after July
20.351, 1989, a survivor annuity computed under paragraph (a) or (c) must be computed as
21.1specified in section 353.30, subdivision 5, except for the revised early retirement reduction
21.2specified in paragraph (c), if paragraph (c) is the applicable provision.
21.3    (j) For any survivor annuity determined under this subdivision, the payment is to be
21.4based on the total allowable service that the member had accrued as of the date of death
21.5and the age of the member and surviving spouse on that date.
21.6EFFECTIVE DATE.This section is effective the day following final enactment.

21.7    Sec. 30. Minnesota Statutes 2009 Supplement, section 353.33, subdivision 1, is
21.8amended to read:
21.9    Subdivision 1. Age, service, and salary requirements. (a) A coordinated or
21.10basic member who has at least three years of allowable service is vested under section
21.11353.01, subdivision 47, and who becomes totally and permanently disabled before normal
21.12retirement age, upon application as defined under section 353.031, is entitled to a disability
21.13benefit in an amount determined under subdivision 3.
21.14(b) If the disabled person's public service has terminated at any time, at least two of
21.15the required three years of allowable service required to be vested under section 353.01,
21.16subdivision 47, must have been rendered after last becoming an active member.
21.17EFFECTIVE DATE.This section is effective the day following final enactment.

21.18    Sec. 31. Minnesota Statutes 2008, section 353.34, subdivision 1, is amended to read:
21.19    Subdivision 1. Refund or deferred annuity. (a) A former member is entitled to
21.20either a refund of accumulated employee deductions under subdivision 2, or to a deferred
21.21annuity under subdivision 3. Application for a refund may not be made before the date of
21.22termination of public service. Except as specified in paragraph (b), a refund must be paid
21.23within 120 days following receipt of the application unless the applicant has again become
21.24a public employee required to be covered by the association.
21.25(b) If an individual was placed on layoff under section 353.01, subdivision 12 or 12c,
21.26a refund is not payable before termination of service under section 353.01, subdivision 11a.
21.27(c) An individual who terminates public service covered by the Public Employees
21.28Retirement Association general employees retirement plan, the Public Employees
21.29Retirement Association police and fire retirement plan, or the public employees local
21.30government corrections correctional service retirement plan, and who is employed by a
21.31different employer and who becomes an active member covered by one of the other two
21.32plans, may receive a refund of employee contributions plus six percent annual compound
22.1interest compounded annually from the plan from which the member terminated service at
22.2the applicable rate specified in subdivision 2.
22.3EFFECTIVE DATE.This section is effective the day following final enactment.

22.4    Sec. 32. Minnesota Statutes 2008, section 353.34, subdivision 2, is amended to read:
22.5    Subd. 2. Refund with interest. (a) Except as provided in subdivision 1, any person
22.6who ceases to be a public employee shall is entitled to receive a refund in an amount equal
22.7to accumulated deductions with annual compound interest to the first day of the month
22.8in which the refund is processed at the rate of six percent compounded annually based
22.9on fiscal year balances.
22.10(b) For a person who ceases to be a public employee before July 1, 2011, the refund
22.11interest is at the rate of six percent to June 30, 2011, and at the rate of four percent after
22.12June 30, 2011. For a person who ceases to be a public employee after July 1, 2011, the
22.13refund interest is at the rate of four percent.
22.14(c) If a person repays a refund and subsequently applies for another refund, the
22.15repayment amount, including interest, is added to the fiscal year balance in which the
22.16repayment was made.
22.17EFFECTIVE DATE.This section is effective the day following final enactment.

22.18    Sec. 33. Minnesota Statutes 2008, section 353.34, subdivision 3, is amended to read:
22.19    Subd. 3. Deferred annuity; eligibility; computation. (a) A member with at least
22.20three years of allowable service who is vested under section 353.01, subdivision 47, when
22.21termination of public service or termination of membership occurs has the option of
22.22leaving the accumulated deductions in the fund and being entitled to a deferred retirement
22.23annuity commencing at normal retirement age or to a deferred early retirement annuity
22.24under section 353.30, subdivision 1a, 1b, 1c, or 5.
22.25(b) The deferred annuity must be computed under section 353.29, subdivision 3, on
22.26the basis of the law in effect on the date of termination of public service or termination of
22.27membership, whichever is earlier, and must be augmented as provided in section 353.71,
22.28subdivision 2 .
22.29(c) A former member qualified to apply for a deferred retirement annuity may
22.30revoke this option at any time before the commencement of deferred annuity payments
22.31by making application for a refund. The person is entitled to a refund of accumulated
22.32member contributions within 30 days following date of receipt of the application by the
22.33executive director.
23.1EFFECTIVE DATE.This section is effective the day following final enactment.

23.2    Sec. 34. Minnesota Statutes 2009 Supplement, section 353.65, subdivision 2, is
23.3amended to read:
23.4    Subd. 2. Employee contribution. The employee contribution is 9.4 percent of the
23.5salary of the member in calendar year 2010 and is 9.6 percent of the salary of the member
23.6in each calendar year after 2010. This contribution must be made by deduction from
23.7salary in the manner provided in subdivision 4. Where any portion of a member's salary
23.8is paid from other than public funds, the member's employee contribution is based on
23.9the total salary received from all sources.
23.10EFFECTIVE DATE.This section is effective the day following final enactment.

23.11    Sec. 35. Minnesota Statutes 2009 Supplement, section 353.65, subdivision 3, is
23.12amended to read:
23.13    Subd. 3. Employer contribution. The employer contribution is 14.1 percent of the
23.14salary of the member in calendar year 2010 and is 14.4 percent of the salary of the member
23.15in each calendar year after 2010. This contribution must be made from funds available to
23.16the employing subdivision by the means and in the manner provided in section 353.28.
23.17EFFECTIVE DATE.This section is effective the day following final enactment.

23.18    Sec. 36. Minnesota Statutes 2008, section 353.651, subdivision 1, is amended to read:
23.19    Subdivision 1. Age and allowable service requirements. Upon separation from
23.20public service, any police officer or firefighter member who has attained the age of at
23.21least 55 years and who received credit for not less than three years of allowable service
23.22is vested under section 353.01, subdivision 47, is entitled upon application to a retirement
23.23annuity. Such retirement annuity is, known as the "normal" retirement annuity.
23.24EFFECTIVE DATE.This section is effective the day following final enactment.

23.25    Sec. 37. Minnesota Statutes 2008, section 353.651, subdivision 4, is amended to read:
23.26    Subd. 4. Early retirement. (a) A person who becomes a police and fire plan
23.27member after June 30, 2007, or a former member who is reinstated as a member of the
23.28plan after that date, who is at least 50 years of age with at least three years of allowable
23.29service and who is vested under section 353.01, subdivision 47, upon the termination of
23.30public service is entitled upon application to a retirement annuity equal to the normal
24.1annuity calculated under subdivision 3, reduced by two-tenths of one percent for each
24.2month that the member is under age 55 at the time of retirement.
24.3    (b) Upon the termination of public service, any police and fire plan member not
24.4specified in paragraph (a), upon attaining at least 50 years of age with at least three years
24.5of allowable service is entitled upon application to a retirement annuity equal to the
24.6normal annuity calculated under subdivision 3, reduced by one-tenth of one percent for
24.7each month that the member is under age 55 at the time of retirement.
24.8EFFECTIVE DATE.This section is effective the day following final enactment.

24.9    Sec. 38. Minnesota Statutes 2008, section 353.657, subdivision 1, is amended to read:
24.10    Subdivision 1. Generally. (a) In the event that a member of the police and fire
24.11fund dies from any cause before retirement or before becoming disabled and receiving
24.12disability benefits, the association shall grant survivor benefits to a surviving spouse, as
24.13defined in section 353.01, subdivision 20, and to a dependent child or children, as defined
24.14in section 353.01, subdivision 15, except that if the death is not a line of duty death, the
24.15member must have accrued at least three years of credited service be vested under section
24.16353.01, subdivision 47.
24.17    (b) Notwithstanding the definition of surviving spouse, a former spouse of the
24.18member, if any, is entitled to a portion of the monthly surviving spouse benefit if
24.19stipulated under the terms of a marriage dissolution decree filed with the association. If
24.20there is no surviving spouse or child or children, a former spouse may be entitled to
24.21a lump-sum refund payment under section 353.32, subdivision 1, if provided for in a
24.22marriage dissolution decree but not a monthly surviving spouse benefit despite the terms
24.23of a marriage dissolution decree filed with the association.
24.24    (c) The spouse and child or children are entitled to monthly benefits as provided in
24.25subdivisions 2 to 4.
24.26EFFECTIVE DATE.This section is effective the day following final enactment.

24.27    Sec. 39. Minnesota Statutes 2008, section 353.657, subdivision 2a, is amended to read:
24.28    Subd. 2a. Death while eligible survivor benefit. (a) If a member or former member
24.29who has attained the age of at least 50 years and has credit for not less than three years
24.30allowable service either who is vested under section 353.01, subdivision 47, or who has
24.31credit for at least 30 years of allowable service, regardless of age attained, dies before
24.32the annuity or disability benefit becomes payable, notwithstanding any designation of
25.1beneficiary to the contrary, the surviving spouse may elect to receive a death while
25.2eligible survivor benefit.
25.3    (b) Notwithstanding the definition of surviving spouse in section 353.01, subdivision
25.420 , a former spouse of the member, if any, is entitled to a portion of the death while
25.5eligible survivor benefit if stipulated under the terms of a marriage dissolution decree
25.6filed with the association. If there is no surviving spouse or child or children, a former
25.7spouse may be entitled to a lump-sum refund payment under section 353.32, subdivision
25.81 , if provided for in a marriage dissolution decree but not a death while eligible survivor
25.9benefit despite the terms of a marriage dissolution decree filed with the association.
25.10    (c) The benefit may be elected instead of a refund with interest under section 353.32,
25.11subdivision 1 , or surviving spouse benefits otherwise payable under subdivisions 1 and
25.122. The benefit must be an annuity equal to the 100 percent joint and survivor annuity
25.13which the member could have qualified for on the date of death, computed as provided in
25.14sections 353.651, subdivisions 2 and 3, and 353.30, subdivision 3.
25.15    (d) The surviving spouse may apply for the annuity at any time after the date
25.16on which the deceased employee would have attained the required age for retirement
25.17based on the employee's allowable service. Sections 353.34, subdivision 3, and 353.71,
25.18subdivision 2 , apply to a deferred annuity payable under this subdivision.
25.19    (e) No payment accrues beyond the end of the month in which entitlement to
25.20such annuity has terminated. An amount equal to the excess, if any, of the accumulated
25.21contributions which were credited to the account of the deceased employee over and
25.22above the total of the annuities paid and payable to the surviving spouse must be paid to
25.23the deceased member's last designated beneficiary or, if none, to the legal representative of
25.24the estate of such deceased member.
25.25    (f) Any member may request in writing, with the signed consent of the spouse, that
25.26this subdivision not apply and that payment be made only to the designated beneficiary, as
25.27otherwise provided by this chapter.
25.28    (g) For a member who is employed as a full-time firefighter by the Department of
25.29Military Affairs of the state of Minnesota, allowable service as a full-time state Military
25.30Affairs Department firefighter credited by the Minnesota State Retirement System may be
25.31used in meeting the minimum allowable service requirement of this subdivision.
25.32EFFECTIVE DATE.This section is effective the day following final enactment.

25.33    Sec. 40. Minnesota Statutes 2008, section 353.71, subdivision 1, is amended to read:
25.34    Subdivision 1. Eligibility. Any person who has been a member of a defined benefit
25.35retirement plan administered by the Public Employees Retirement Association, or a
26.1retirement plan administered by the Minnesota State Retirement System, or the Teachers
26.2Retirement Association, or any other public retirement system in the state of Minnesota
26.3having a like provision, except a fund retirement plan providing benefits for police officers
26.4or firefighters governed by sections 69.77 or 69.771 to 69.776, shall be is entitled, when
26.5qualified, to an annuity from each fund retirement plan if the total allowable service in all
26.6funds retirement plans or in any two of these funds retirement plans totals three or more
26.7years the number of years of allowable service required to receive a normal retirement
26.8annuity for that retirement plan, provided that no portion of the allowable service upon
26.9which the retirement annuity from one fund retirement plan is based is again used in the
26.10computation for benefits from another fund retirement plan and provided further that the
26.11person has not taken a refund from any one of these funds retirement plans since the
26.12person's membership in that association or system last terminated. The annuity from
26.13each fund shall must be determined by the appropriate provisions of the law except that
26.14the requirement that a person must have at least three years a specific minimum period
26.15of allowable service in the respective association or system shall does not apply for the
26.16purposes of this section provided if the combined service in two or more of these funds
26.17retirement plans equals three or more the number of years of allowable service required to
26.18receive a normal retirement annuity for that retirement plan.
26.19EFFECTIVE DATE.This section is effective the day following final enactment.

26.20    Sec. 41. Minnesota Statutes 2008, section 353.71, subdivision 2, is amended to read:
26.21    Subd. 2. Deferred annuity computation; augmentation. (a) The deferred annuity
26.22accruing under subdivision 1, or under sections 353.34, subdivision 3, and 353.68,
26.23subdivision 4 , must be computed on the basis of allowable service prior to the termination
26.24of public service and augmented as provided in this paragraph subdivision. The required
26.25reserves applicable to a deferred annuity, or to any deferred segment of an annuity must
26.26be determined as of the first day of the month following the month in which the former
26.27member ceased to be a public employee, or July 1, 1971, whichever is later. These
26.28(b) For a person who became a public employee before July 1, 2006, whose period
26.29of deferral began after June 30, 1971, and who terminated public employment before
26.30January 1, 2011, the required reserves of the deferred annuity must be augmented at
26.31the following applicable rate of or rates:
26.32(1) five percent annually compounded annually annual compound interest until
26.33January 1, 1981, and at the rate of;
26.34(2) three percent thereafter annual compound interest after January 1, 1981, or until
26.35the earlier of December 31, 2010, or after the date of the termination of public service or
27.1the termination of membership, whichever is later, until January 1 of the year following
27.2the year in which the former member attains age 55 and;
27.3(3) five percent annual compound interest from that date to the effective date of
27.4retirement, the rate is five percent compounded annually if the employee became an
27.5employee before July 1, 2006, and at 2.5 percent compounded annually if the employee
27.6becomes an January 1 of the year following the year in which the former member attains
27.7age 55, or until December 31, 2010, whichever is earlier; and
27.8(4) one percent annual compound interest from January 1, 2011.
27.9(c) For a person who became a public employee after June 30, 2006, and who
27.10terminated public employment before January 1, 2011, the required reserves of the
27.11deferred annuity must be augmented at 2.5 percent annual compound interest from the date
27.12of termination of public service or termination of membership, whichever is earlier, until
27.13December 31, 2010, and one percent annual compound interest after December 31, 2010.
27.14(d) For a person who terminates public employment after December 31, 2010, the
27.15required reserves of the deferred annuity must not be augmented.
27.16(e) If a person has more than one period of uninterrupted service, the required
27.17reserves related to each period must be augmented as specified in this paragraph. The sum
27.18of the augmented required reserves is the present value of the annuity. Uninterrupted
27.19service for the purpose of this subdivision means periods of covered employment during
27.20which the employee has not been separated from public service for more than two years.
27.21If a person repays a refund, the restored service must be considered as continuous with the
27.22next period of service for which the employee has credit with this association. This section
27.23must not reduce the annuity otherwise payable under this chapter. This paragraph applies
27.24to individuals who become deferred annuitants on or after July 1, 1971. For a member
27.25who became a deferred annuitant before July 1, 1971, the paragraph applies from July 1,
27.261971, if the former active member applies for an annuity after July 1, 1973.
27.27(b) (f) The retirement annuity or disability benefit of, or the survivor benefit payable
27.28on behalf of, a former member who terminated service before July 1, 1997, or the
27.29survivor benefit payable on behalf of a basic or police and fire member who was receiving
27.30disability benefits before July 1, 1997, which is first payable after June 30, 1997, must
27.31be increased on an actuarial equivalent basis to reflect the change in the postretirement
27.32interest rate actuarial assumption under section 356.215, subdivision 8, from five percent
27.33to six percent under a calculation procedure and tables adopted by the board and approved
27.34by the actuary retained under section 356.214.
27.35EFFECTIVE DATE.This section is effective the day following final enactment.

28.1    Sec. 42. Minnesota Statutes 2008, section 353E.04, subdivision 1, is amended to read:
28.2    Subdivision 1. Eligibility requirements. After termination of public employment,
28.3an employee covered under section 353E.02 who has attained the age of at least 55 years
28.4and has credit for not less than three years of coverage who is vested under section
28.5353.01, subdivision 47, in the local government correctional service plan is entitled, upon
28.6application, to a normal retirement annuity. Instead of a normal retirement annuity, a
28.7retiring employee may elect to receive the optional annuity provided in section 353.30,
28.8subdivision 3 .
28.9EFFECTIVE DATE.This section is effective the day following final enactment.

28.10    Sec. 43. Minnesota Statutes 2008, section 353E.04, subdivision 4, is amended to read:
28.11    Subd. 4. Early retirement. An employee covered under section 353E.02 who has
28.12attained the age of at least 50 years and has credit for not less than three years of coverage
28.13who is vested under section 353.01, subdivision 47, in the local government correctional
28.14service plan is entitled, upon application, to a reduced retirement annuity equal to the
28.15annuity calculated under subdivision 3, reduced so that the reduced annuity is the actuarial
28.16equivalent of the annuity that would be payable if the employee deferred receipt of the
28.17annuity from the day the annuity begins to accrue until age 55.
28.18EFFECTIVE DATE.This section is effective the day following final enactment.

28.19    Sec. 44. Minnesota Statutes 2008, section 353E.07, subdivision 1, is amended to read:
28.20    Subdivision 1. Member at least age 50. If a member or former member of the local
28.21government correctional service retirement plan who has attained the age of at least 50
28.22years and has credit for not less than three years of allowable service who is vested under
28.23section 353.01, subdivision 47, dies before the annuity or disability benefit has become
28.24payable, notwithstanding any designation of beneficiary to the contrary, the surviving
28.25spouse may elect to receive, in lieu of a refund with interest provided in section 353.32,
28.26subdivision 1 , a surviving spouse annuity equal to the 100 percent joint and survivor
28.27annuity for which the member could have qualified had the member terminated service
28.28on the date of death.
28.29EFFECTIVE DATE.This section is effective the day following final enactment.

28.30    Sec. 45. Minnesota Statutes 2008, section 353E.07, subdivision 2, is amended to read:
28.31    Subd. 2. Member not yet age 50. If the member was under age 50, dies, and had
28.32credit for not less than three years of allowable service was vested under section 353.01,
29.1subdivision 47, on the date of death but did not yet qualify for retirement, the surviving
29.2spouse may elect to receive a 100 percent joint and survivor annuity based on the age
29.3of the employee and the surviving spouse at the time of death. The annuity is payable
29.4using the early retirement reduction under section 353E.04, subdivision 4, to age 50 and
29.5one-half the early retirement reduction from age 50 to the age payment begins. Sections
29.6353.34, subdivision 3 , and 353.71, subdivision 2, apply to a deferred annuity or surviving
29.7spouse benefit payable under this subdivision.
29.8EFFECTIVE DATE.This section is effective the day following final enactment.

29.9    Sec. 46. Minnesota Statutes 2008, section 353F.03, is amended to read:
29.10353F.03 VESTING RULE FOR CERTAIN EMPLOYEES.
29.11Notwithstanding any provision of chapter 353 to the contrary, a terminated medical
29.12facility or other public employing unit employee is eligible to receive a retirement annuity
29.13under section 353.29 of the edition of Minnesota Statutes published in the year before the
29.14year in which the privatization occurred, without regard to the requirement for three years
29.15of allowable service specified in section 353.01, subdivision 47.
29.16EFFECTIVE DATE.This section is effective the day following final enactment.

29.17    Sec. 47. Minnesota Statutes 2009 Supplement, section 354.42, subdivision 2, is
29.18amended to read:
29.19    Subd. 2. Employee contribution. (a) For a basic member, the employee
29.20contribution to the fund is 9.0 percent the following percentage of the member's salary.:

29.21		before July 1, 2011	9.0 percent
29.22		from July 1, 2011, until June 30, 2012	9.5 percent
29.23		from July 1, 2012, until June 30, 2013	10.0 percent
29.24		from July 1, 2013, until June 30, 2014	10.5 percent
29.25		after June 30, 2014	11.0 percent

29.26(b) For a coordinated member, the employee contribution is 5.5 percent the following
29.27percentage of the member's salary.:

29.28		before July 1, 2011	5.5 percent
29.29		from July 1, 2011, until June 30, 2012	6.0 percent
29.30		from July 1, 2012, until June 30, 2013	6.5 percent
29.31		from July 1, 2013, until June 30, 2014	7.0 percent
29.32		after June 30, 2014	7.5 percent

30.1(c) When an employee contribution rate changes for a fiscal year, the new
30.2contribution rate is effective for the entire salary paid for each employer unit with the
30.3first payroll cycle reported.
30.4(d) After June 30, 2015, if a contribution rate revision is required under subdivisions
30.54a, 4b, and 4c, the employee contributions under paragraphs (a) and (b) must be adjusted
30.6accordingly.
30.7(b) (e) This contribution must be made by deduction from salary. Where any portion
30.8of a member's salary is paid from other than public funds, the member's employee
30.9contribution must be based on the entire salary received.
30.10EFFECTIVE DATE.This section is effective the day following final enactment.

30.11    Sec. 48. Minnesota Statutes 2008, section 354.42, subdivision 3, is amended to read:
30.12    Subd. 3. Employer. (a) The regular employer contribution to the fund by Special
30.13School District No. 1, Minneapolis, after July 1, 2006, and before July 1, 2007, is an
30.14amount equal to 5.0 percent of the salary of each of its teachers who is a coordinated
30.15member and 9.0 percent of the salary of each of its teachers who is a basic member. After
30.16July 1, 2007, the regular employer contribution to the fund by Special School District No.
30.171, Minneapolis, is an amount equal to 5.5 percent the applicable following percentage of
30.18salary of each coordinated member and 9.5 percent the applicable following percentage
30.19of salary of each basic member.:

30.20		Period	Coordinated Member		Basic Member
30.21		before July 1, 2011		5.5 percent		9.5 percent
30.22		from July 1, 2011, until June 30, 2012		6.0 percent		10.0 percent
30.23		from July 1, 2012, until June 30, 2013		6.5 percent		10.5 percent
30.24		from July 1, 2013, until June 30, 2014		7.0 percent		11.0 percent
30.25		after June 30, 2014		7.5 percent		11.5 percent

30.26 The additional employer contribution to the fund by Special School District No. 1,
30.27Minneapolis, after July 1, 2006, is an amount equal to 3.64 percent of the salary of each
30.28teacher who is a coordinated member or is a basic member.
30.29(b) The employer contribution to the fund for every other employer is an amount
30.30equal to 5.0 percent the applicable following percentage of the salary of each coordinated
30.31member and 9.0 percent the applicable following percentage of the salary of each basic
30.32member before July 1, 2007, and 5.5 percent of the salary of each coordinated member
30.33and 9.5 percent of the salary of each basic member after June 30, 2007.:

30.34		Period	Coordinated Member		Basic Member
30.35		before July 1, 2011		5.5 percent		9.5 percent
31.1		from July 1, 2011, until June 30, 2012		6.0 percent		10.0 percent
31.2		from July 1, 2012, until June 30, 2013		6.5 percent		10.5 percent
31.3		from July 1, 2013, until June 30, 2014		7.0 percent		11.0 percent
31.4		after June 30, 2014		7.5 percent		11.5 percent

31.5(c) When an employer contribution rate changes for a fiscal year, the new
31.6contribution rate is effective for the entire salary paid for each employer unit with the
31.7first payroll cycle reported.
31.8(d) After June 30, 2015, if a contribution rate revision is made under subdivisions
31.94a, 4b, and 4c, the employer contributions under paragraphs (a) and (b) must be adjusted
31.10accordingly.
31.11EFFECTIVE DATE.This section is effective the day following final enactment.

31.12    Sec. 49. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision
31.13to read:
31.14    Subd. 4a. Determination. (a) For purposes of this section, a contribution
31.15sufficiency exists if the total of the employee contributions, the employer contributions,
31.16and any additional employer contributions, if applicable, exceeds the total of the normal
31.17cost, the administrative expenses, and the amortization contribution of the retirement plan
31.18as reported in the most recent actuarial valuation of the retirement plan prepared by the
31.19approved actuary retained under section 356.214 and prepared under section 356.215
31.20and the standards for actuarial work of the Legislative Commission on Pensions and
31.21Retirement.
31.22(b) For purposes of this section, a contribution deficiency exists if the total of
31.23the employee contributions, the employer contributions, and any additional employer
31.24contributions are less than the total of the normal cost, the administrative expenses, and
31.25the amortization contribution of the retirement plan as reported in the most recent actuarial
31.26valuation of the retirement plan prepared by the approved actuary retained under section
31.27356.214 and prepared under section 356.215 and the standards for actuarial work of the
31.28Legislative Commission on Pensions and Retirement.
31.29EFFECTIVE DATE.This section is effective the day following final enactment.

31.30    Sec. 50. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision
31.31to read:
32.1    Subd. 4b. Contribution rate revision. Notwithstanding the contribution rate
32.2provisions under subdivisions 2 and 3, the employee and employer contribution rates
32.3may be adjusted as follows:
32.4(1) if, after June 30, 2015, the regular actuarial valuation of the plan under section
32.5356.215 indicates that there is a contribution sufficiency under subdivision 4a equal to
32.6or greater than one percent of covered payroll and the sufficiency has existed for at least
32.7two consecutive years, the employee and employer contribution rates for the plan may
32.8each be decreased to a level such that the sufficiency equals no more than one percent of
32.9covered payroll based on the most recent actuarial valuation; or
32.10(2) if, after June 30, 2015, the regular valuation of the plan under section 356.215
32.11indicates that there is a deficiency equal to or greater than 0.25 percent of covered payroll
32.12and the deficiency has existed for at least two consecutive years, the employee and
32.13employer contribution rates for the applicable plan may each be increased by:
32.14(i) 0.25 percent if the deficiency is less than 2.00 percent of covered payroll;
32.15(ii) 0.5 percent if the deficiency is equal to or greater than 2.00 percent of covered
32.16payroll and less than or equal to four percent; and
32.17(iii) 0.75 percent if the deficiency is greater than four percent.
32.18EFFECTIVE DATE.This section is effective the day following final enactment.

32.19    Sec. 51. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision
32.20to read:
32.21    Subd. 4c. Contribution sufficiency measures. (a) A contribution sufficiency of up
32.22to one percent of covered payroll must be held in reserve to be used to offset any future
32.23actuarially required contributions that are more than the total combined employee and
32.24employer contributions being collected.
32.25(b) Before any reduction in contributions to eliminate a sufficiency in excess of one
32.26percent of covered pay may be recommended, the executive director must review any
32.27need for a change in actuarial assumptions, as recommended by the actuary retained
32.28under section 356.214 in the most recent experience study of the retirement plan, that
32.29may result in an increase in the actuarially required contribution and must report to the
32.30Legislative Commission on Pensions and Retirement any recommendation by the board
32.31to use the sufficiency exceeding one percent of covered payroll to offset the impact of
32.32an actuarial assumption change recommended by the actuary retained under section
32.33356.214, subdivision 1, and reviewed by the actuary retained by the commission under
32.34section 356.214, subdivision 4.
33.1(c) A contribution sufficiency in excess of one percent of covered pay must not be
33.2used to increase benefits, and a benefit increase must not be proposed that would initiate
33.3an automatic adjustment under this section to increase contributions. A proposed benefit
33.4improvement must include a recommendation, prepared by the actuary retained under
33.5section 356.214, subdivision 1, and reviewed by the actuary retained by the Legislative
33.6Commission on Pensions and Retirement, as provided under section 356.214, subdivision
33.74, on the manner in which the benefit modification is to be funded.
33.8EFFECTIVE DATE.This section is effective the day following final enactment.

33.9    Sec. 52. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision
33.10to read:
33.11    Subd. 4d. Reporting; commission review. A contribution rate increase or decrease
33.12under subdivision 4b, as determined by the executive director of the Teachers Retirement
33.13Association, must be reported to the chair and the executive director of the Legislative
33.14Commission on Pensions and Retirement on or before the next February 1 and, if the
33.15Legislative Commission on Pensions and Retirement does not recommend against the rate
33.16change or does not recommend a modification in the rate change, is effective on the next
33.17July 1 following the determination by the executive director that a contribution deficiency
33.18or sufficiency exists based on the most recent actuarial valuation under section 356.215.
33.19EFFECTIVE DATE.This section is effective the day following final enactment.

33.20    Sec. 53. Minnesota Statutes 2009 Supplement, section 354.47, subdivision 1, is
33.21amended to read:
33.22    Subdivision 1. Death before retirement. (a) If a member dies before retirement
33.23and is covered under section 354.44, subdivision 2, and neither an optional annuity, nor a
33.24reversionary annuity, nor a benefit under section 354.46, subdivision 1, is payable to the
33.25survivors if the member was a basic member, then the surviving spouse, or if there is no
33.26surviving spouse, the designated beneficiary is entitled to an amount equal to the member's
33.27accumulated deductions with interest credited to the account of the member to the date of
33.28death of the member. If the designated beneficiary is a minor, interest must be credited to
33.29the date the beneficiary reaches legal age, or the date of receipt, whichever is earlier.
33.30(b) If a member dies before retirement and is covered under section 354.44,
33.31subdivision 6 , and neither an optional annuity, nor reversionary annuity, nor the benefit
33.32described in section 354.46, subdivision 1, is payable to the survivors if the member
33.33was a basic member, then the surviving spouse, or if there is no surviving spouse, then
34.1the designated beneficiary is entitled to an amount equal to the member's accumulated
34.2deductions credited to the account of the member as of June 30, 1957, and from July 1,
34.31957, to the date of death of the member, the member's accumulated deductions plus six
34.4percent interest compounded annually. a refund equal to the accumulated deductions
34.5credited to the member's account plus interest compounded annually until the member's
34.6date of death using the following interest rates:
34.7(1) before July 1, 1957, no interest accrues;
34.8(2) July 1, 1957, to June 30, 2011, six percent; and
34.9(3) after June 30, 2011, four percent.
34.10(c) If the designated beneficiary under paragraph (b) is a minor, any interest credited
34.11under that paragraph must be credited to the date the beneficiary reaches legal age, or
34.12the date of receipt, whichever is earlier.
34.13(d) The amount of any refund payable under this subdivision must be reduced by
34.14any permanent disability payment under section 354.48 received by the member.
34.15EFFECTIVE DATE.This section is effective the day following final enactment.

34.16    Sec. 54. Minnesota Statutes 2009 Supplement, section 354.49, subdivision 2, is
34.17amended to read:
34.18    Subd. 2. Calculation. (a) Except as provided in section 354.44, subdivision 1,
34.19any person who ceases to be a member by reason of termination of teaching service, is
34.20entitled to receive a refund in an amount equal to the accumulated deductions credited
34.21to the account as of June 30, 1957, and after July 1, 1957, the accumulated deductions
34.22with interest at the rate of six percent per annum compounded annually. plus interest
34.23compounded annually using the following interest rates:
34.24(1) before July 1, 1957, no interest accrues;
34.25(2) July 1, 1957, to June 30, 2011, six percent; and
34.26(3) after June 30, 2011, four percent.
34.27For the purpose of this subdivision, interest must be computed on fiscal year end
34.28balances to the first day of the month in which the refund is issued.
34.29(b) If the person has received permanent disability payments under section 354.48,
34.30the refund amount must be reduced by the amount of those payments.
34.31EFFECTIVE DATE.This section is effective the day following final enactment.

34.32    Sec. 55. Minnesota Statutes 2009 Supplement, section 354.55, subdivision 11, is
34.33amended to read:
35.1    Subd. 11. Deferred annuity; augmentation. (a) Any person covered under section
35.2354.44, subdivision 6 , who ceases to render teaching service, may leave the person's
35.3accumulated deductions in the fund for the purpose of receiving a deferred annuity
35.4at retirement.
35.5(b) The amount of the deferred retirement annuity is determined by section 354.44,
35.6subdivision 6 , and augmented as provided in this subdivision. The required reserves for
35.7the annuity which had accrued when the member ceased to render teaching service must
35.8be augmented, as further specified in this subdivision, by the applicable interest rate
35.9compounded annually from the first day of the month following the month during which
35.10the member ceased to render teaching service to the effective date of retirement.
35.11(c) No augmentation is not creditable if the deferral period is less than three months
35.12or if deferral commenced before July 1, 1971.
35.13(d) For persons who became covered employees before July 1, 2006, with a deferral
35.14period commencing after June 30, 1971, the annuity must be augmented using as follows:
35.15(1) five percent interest compounded annually until January 1, 1981, and;
35.16(2) three percent interest compounded annually thereafter from January 1, 1981, until
35.17January 1 of the year following the year in which the deferred annuitant attains age 55.;
35.18 From that date (3) five percent interest compounded annually from the date
35.19established in clause (2) to the effective date of retirement, the rate is five percent
35.20compounded annually. or until June 30, 2011, whichever is earlier; and
35.21(4) two percent interest compounded annually after June 30, 2011.
35.22(e) For persons who become covered employees after June 30, 2006, the interest
35.23rate used to augment the deferred annuity is 2.5 percent interest compounded annually
35.24until June 30, 2011, or until the effective date of retirement, whichever is earlier, and two
35.25percent interest compounded annually after June 30, 2011.
35.26(f) If a person has more than one period of uninterrupted service, a separate average
35.27salary determined under section 354.44, subdivision 6, must be used for each period
35.28and the required reserves related to each period must be augmented as specified in this
35.29subdivision. The sum of the augmented required reserves is the present value of the
35.30annuity. For the purposes of this subdivision, "period of uninterrupted service" means a
35.31period of covered teaching service during which the member has not been separated from
35.32active service for more than one fiscal year.
35.33(g) If a person repays a refund, the service restored by the repayment must be
35.34considered as continuous with the next period of service for which the person has
35.35allowable service credit in the Teachers Retirement Association.
36.1(h) If a person does not render teaching service in any one fiscal year or more
36.2consecutive fiscal years and then resumes teaching service, the formula percentages used
36.3from the date of the resumption of teaching service must be those applicable to new
36.4members.
36.5(i) The mortality table and interest rate actuarial assumption used to compute the
36.6annuity must be the applicable mortality table established by the board under section
36.7354.07, subdivision 1 , and the interest rate actuarial assumption under section 356.215 in
36.8effect when the member retires.
36.9(j) In no case may the annuity payable under this subdivision be less than the amount
36.10of annuity payable under section 354.44, subdivision 6.
36.11(k) The requirements and provisions for retirement before normal retirement age
36.12contained in section 354.44, subdivision 6, also apply to an employee fulfilling the
36.13requirements with a combination of service as provided in section 354.60.
36.14(l) The augmentation provided by this subdivision applies to the benefit provided
36.15in section 354.46, subdivision 2.
36.16(m) The augmentation provided by this subdivision does not apply to any period
36.17in which a person is on an approved leave of absence from an employer unit covered
36.18by the provisions of this chapter.
36.19(n) The retirement annuity or disability benefit of, or the survivor benefit payable on
36.20behalf of, a former teacher who terminated service before July 1, 1997, which is not first
36.21payable until after June 30, 1997, must be increased on an actuarial equivalent basis to
36.22reflect the change in the postretirement interest rate actuarial assumption under section
36.23356.215, subdivision 8 , from five percent to six percent under a calculation procedure and
36.24tables adopted by the board as recommended by an approved actuary and approved by the
36.25actuary retained under section 356.214.
36.26EFFECTIVE DATE.This section is effective the day following final enactment.

36.27    Sec. 56. Minnesota Statutes 2008, section 354A.12, subdivision 1, is amended to read:
36.28    Subdivision 1. Employee contributions. (a) The contribution required to be paid
36.29by each member of a teachers retirement fund association shall not be less than is the
36.30percentage of total salary specified below for the applicable association and program:

36.31		Association and Program		Percentage of Total Salary
36.32	Duluth Teachers Retirement Fund Association
36.33		old law and new law
36.34		coordinated programs		5.5 percent
36.35		before July 1, 2011		5.5 percent
37.1		effective July 1, 2011		6.0 percent
37.2		effective July 1, 2012		6.5 percent
37.3	St. Paul Teachers Retirement Fund Association
37.4		basic program before July 1, 2010		8 percent
37.5		basic program after June 30, 2010		8.5 percent
37.6		basic program after June 30, 2011		9.0 percent
37.7		coordinated program before July 1, 2010		5.5 percent
37.8		coordinated program after June 30, 2010		6.0 percent
37.9		coordinated program after June 30, 2011		6.5 percent

37.10(b) Contributions shall be made by deduction from salary and must be remitted
37.11directly to the respective teachers retirement fund association at least once each month.
37.12(c) When an employee contribution rate changes for a fiscal year, the new
37.13contribution rate is effective for the entire salary paid by the employer with the first
37.14payroll cycle reported.
37.15EFFECTIVE DATE.This section is effective July 1, 2010.

37.16    Sec. 57. Minnesota Statutes 2009 Supplement, section 354A.12, subdivision 2a,
37.17is amended to read:
37.18    Subd. 2a. Employer regular and additional contributions. (a) The employing
37.19units shall make the following employer contributions to teachers retirement fund
37.20associations:
37.21(1) for any coordinated member of one of the following teachers retirement fund
37.22associations in a city of the first class, the employing unit shall make a regular employer
37.23contribution to the respective retirement fund association in an amount equal to the
37.24designated percentage of the salary of the coordinated member as provided below:

37.25		Duluth Teachers Retirement Fund Association		4.50 percent
37.26		before July 1, 2011		5.79 percent
37.27		effective July 1, 2011		6.29 percent
37.28		effective July 1, 2012		6.79 percent
37.29 37.30		St. Paul Teachers Retirement Fund Association before July 1, 2010		4.50 percent
37.31 37.32		St. Paul Teachers Retirement Fund Association after June 30, 2010		5.0 percent
37.33 37.34		St. Paul Teachers Retirement Fund Association after June 30, 2011		5.5 percent
37.35 37.36		St. Paul Teachers Retirement Fund Association after June 30, 2013		6.5 percent

37.37(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the
37.38employing unit shall make a regular employer contribution to the respective retirement
38.1fund in an amount equal to 8.00 percent of the salary of the basic member; according to
38.2the schedule below:

38.3		before July 1, 2010	8.0 percent of the salary of the basic member
38.4		before July 1, 2011	8.5 percent of the salary of the basic member
38.5		before July 1, 2012	9.0 percent of the salary of the basic member
38.6		before July 1, 2013	9.5 percent of the salary of the basic member
38.7		before July 1, 2014	10.0 percent of the salary of the basic member

38.8(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the
38.9employing unit shall make an additional employer contribution to the respective fund in
38.10an amount equal to 3.64 percent of the salary of the basic member;
38.11(4) for a coordinated member of a teachers retirement fund association in a city of
38.12the first class the St. Paul Teachers Retirement Fund Association, the employing unit shall
38.13make an additional employer contribution to the respective fund in an amount equal to the
38.14applicable percentage of the coordinated member's salary, as provided below:

38.15 38.16		Duluth Teachers Retirement Fund Association		1.29 percent
38.17 38.18		St. Paul Teachers Retirement Fund Association		3.84 percent

38.19(b) The regular and additional employer contributions must be remitted directly to
38.20the respective teachers retirement fund association at least once each month. Delinquent
38.21amounts are payable with interest under the procedure in subdivision 1a.
38.22(c) Payments of regular and additional employer contributions for school district
38.23or technical college employees who are paid from normal operating funds must be made
38.24from the appropriate fund of the district or technical college.
38.25(d) When an employer contribution rate changes for a fiscal year, the new
38.26contribution rate is effective for the entire salary paid by the employer with the first
38.27payroll cycle reported.
38.28EFFECTIVE DATE.This section is effective July 1, 2010.

38.29    Sec. 58. Minnesota Statutes 2008, section 354A.12, subdivision 3c, is amended to read:
38.30    Subd. 3c. Termination of supplemental contributions and direct matching
38.31and state aid. (a) The supplemental contributions payable to the Minneapolis Teachers
38.32Retirement Fund Association by Special School District No. 1 and the city of Minneapolis
38.33under section 423A.02, subdivision 3, must be paid to the Teachers Retirement
38.34Association and must continue until the current assets of the fund equal or exceed the
38.35actuarial accrued liability of the fund as determined in the most recent actuarial report
38.36for the fund by the actuary retained under section 356.214, or 2037, whichever occurs
39.1earlier. The supplemental contributions payable to the St. Paul Teachers Retirement Fund
39.2Association by Independent School District No. 625 under section 423A.02, subdivision
39.33 , or the direct state aid under subdivision 3a to the St. Paul Teachers Retirement Fund
39.4Association terminate at the end of the fiscal year in which the accrued liability funding
39.5ratio for that fund, as determined in the most recent actuarial report for that fund by the
39.6actuary retained under section 356.214, equals or exceeds the accrued liability funding
39.7ratio for the Teachers Retirement Association, as determined in the most recent actuarial
39.8report for the Teachers Retirement Association by the actuary retained under section
39.9356.214. must continue until the current assets of the fund equal or exceed the actuarial
39.10accrued liability of the fund as determined in the most recent actuarial report for the fund
39.11by the actuary retained under section 356.214 or until 2037, whichever occurs earlier.
39.12    (b) If the St. Paul Teachers Retirement Fund Association is funded at an amount
39.13equal to or greater than the funding ratio applicable to the Teachers Retirement
39.14Association, then any future state aid under subdivision 3a is payable to the Teachers
39.15Retirement Association.
39.16EFFECTIVE DATE.This section is effective July 1, 2010.

39.17    Sec. 59. Minnesota Statutes 2008, section 354A.27, subdivision 5, is amended to read:
39.18    Subd. 5. Calculation Eligibility for and payment of postretirement adjustments.
39.19(a) Annually, after June 30, the board of trustees of the Duluth Teachers Retirement Fund
39.20Association determines the amount of any postretirement adjustment using the procedures
39.21in this subdivision and subdivision 6 or 7, whichever is applicable.
39.22(b) Each person who has been receiving an annuity or benefit under the articles
39.23of incorporation, bylaws, or under this section for at least 12 months as of the date of
39.24the postretirement adjustment shall be eligible for a postretirement adjustment. The
39.25postretirement adjustment shall be payable each January 1. The postretirement adjustment
39.26shall be equal to two percent of a permanent percentage increase as specified under
39.27subdivision 6 or 7, whichever is applicable, applied to the annuity or benefit to which the
39.28person is entitled one month prior to the payment of the postretirement adjustment.
39.29EFFECTIVE DATE.This section is effective July 1, 2010.

39.30    Sec. 60. Minnesota Statutes 2008, section 354A.27, subdivision 6, is amended to read:
39.31    Subd. 6. Additional increase Calculation of postretirement adjustments;
39.32transitional provision. (a) In addition to the postretirement increases granted under
40.1subdivision 5, an additional percentage increase must be computed and paid under this
40.2subdivision.
40.3(b) The board of trustees shall determine the number of annuitants or benefit
40.4recipients who have been receiving an annuity or benefit for at least 12 months as of the
40.5current June 30. These recipients are entitled to receive the surplus investment earnings
40.6additional postretirement increase.
40.7(c) Annually, as of each June 30, the board shall determine the five-year annualized
40.8rate of return attributable to the assets of the Duluth Teachers Retirement Fund Association
40.9under the formula or formulas specified in section 11A.04, clause (11).
40.10(d) The board shall determine the amount of excess five-year annualized rate of
40.11return over the preretirement interest assumption as specified in section 356.215.
40.12(e) The additional percentage increase must be determined by multiplying the
40.13quantity one minus the rate of contribution deficiency, as specified in the most recent
40.14actuarial report of the actuary retained under section 356.214, times the rate of return
40.15excess as determined in paragraph (d).
40.16(f) The additional increase is payable to all eligible annuitants or benefit recipients
40.17on the following January 1.
40.18(a) For purposes of computing postretirement adjustments after the effective date
40.19of this section for eligible benefit recipients of the Duluth Teachers Retirement Fund
40.20Association, the funding ratio of the plan, as determined by dividing the market value of
40.21assets by the actuarial accrued liability as reported in the most recent actuarial valuation
40.22prepared under sections 356.214 and 356.215, determines the postretirement increase
40.23as follows:

40.24		Funding Ratio	Postretirement Increase
40.25		less than 80 percent	0 percent
40.26 40.27		at least 80 percent but less than 90 percent	1 percent
40.28		at least 90 percent	2 percent

40.29(b) If the funding ratio of the plan based on actuarial value, rather than market value,
40.30is at least 90 percent as reported in the most recent actuarial valuation prepared under
40.31sections 356.214 and 356.215, this subdivision expires and subsequent postretirement
40.32increases must be paid as specified under subdivision 7.
40.33EFFECTIVE DATE.This section is effective July 1, 2010.

40.34    Sec. 61. Minnesota Statutes 2008, section 354A.27, is amended by adding a
40.35subdivision to read:
41.1    Subd. 7. Calculation of postretirement adjustments. (a) This subdivision applies
41.2if subdivision 6 has expired.
41.3(b) A percentage adjustment must be computed and paid under this subdivision
41.4to eligible persons in subdivision 5. This adjustment is determined by reference to the
41.5Consumer Price Index for urban wage earners and clerical workers all items index as
41.6reported by the Bureau of Labor Statistics within the United States Department of Labor
41.7each year as part of the determination of annual cost-of-living adjustments to recipients
41.8of federal old-age, survivors, and disability insurance. For calculations of cost-of-living
41.9adjustments under paragraph (c), the term "average third quarter Consumer Price Index
41.10value" means the sum of the monthly index values as initially reported by the Bureau of
41.11Labor Statistics for the months of July, August, and September, divided by 3.
41.12(c) Before January 1 of each year, the executive director must calculate the amount
41.13of the cost-of-living adjustment by dividing the most recent average third quarter index
41.14value by the same average third quarter index value from the previous year, subtract one
41.15from the resulting quotient, and express the result as a percentage amount, which must be
41.16rounded to the nearest one-tenth of one percent.
41.17(d) The amount calculated under paragraph (c) is the full cost-of-living adjustment
41.18to be applied as a permanent increase to the regular payment of each eligible member
41.19on January 1 of the next calendar year. For any eligible member whose effective date
41.20of benefit commencement occurred during the calendar year before the cost-of-living
41.21adjustment is applied, the full increase amount must be prorated on the basis of whole
41.22calendar quarters in benefit payment status in the calendar year prior to the January 1 on
41.23which the cost-of-living adjustment is applied, calculated to the third decimal place.
41.24(e) The adjustment must not be less than zero nor greater than five percent.
41.25(f) If the funding ratio of the plan as determined in the most recent actuarial
41.26valuation using the actuarial value of assets is less than 80 percent there will be no
41.27postretirement adjustment the following January 1.
41.28EFFECTIVE DATE.This section is effective July 1, 2010.

41.29    Sec. 62. Minnesota Statutes 2008, section 354A.31, subdivision 1, is amended to read:
41.30    Subdivision 1. Age and service requirements. Any coordinated member or former
41.31coordinated member of the St. Paul Teachers Retirement Fund Association who has
41.32ceased to render teaching service for the school district in which the teachers retirement
41.33fund association exists and who has either attained the age of at least 55 years with not
41.34less than three years of allowable service credit or received credit for not less than 30
41.35years of allowable service regardless of age, shall be entitled upon written application to a
42.1retirement annuity. Any coordinated member or former coordinated member of the Duluth
42.2Teachers Retirement Fund Association who has ceased to render teaching service for the
42.3school district in which the teacher retirement fund association exists and who has either
42.4attained the age of at least 55 years with not less than three years of allowable service
42.5credit if the member became an employee before July 1, 2010, or not less than five years
42.6of allowable service credit if the member became an employee after June 30, 2010, or
42.7received service credit for not less than 30 years of allowable service regardless of age,
42.8shall be entitled upon written application to a retirement annuity.
42.9EFFECTIVE DATE.This section is effective July 1, 2010.

42.10    Sec. 63. Minnesota Statutes 2008, section 354A.35, subdivision 1, is amended to read:
42.11    Subdivision 1. Death before retirement; refund. If a coordinated member
42.12or former coordinated member dies prior to retirement or prior to the receipt of any
42.13retirement annuity or other benefit payment which is or may be payable and a surviving
42.14spouse optional annuity is not payable pursuant to subdivision 2, a refund shall be paid to
42.15the person's surviving spouse, or if there is none, to the person's designated beneficiary,
42.16or if there is none, to the legal representative of the person's estate. For a coordinated
42.17member or former coordinated member of the St. Paul Teachers Retirement Fund
42.18Association, the refund shall be in an amount equal to the person's accumulated employee
42.19contributions plus interest at the rate of six percent per annum compounded annually. For
42.20a coordinated member or former coordinated member of the Duluth Teachers Retirement
42.21Fund Association, the refund shall be in an amount equal to the person's accumulated
42.22employee contributions plus interest at the rate of six percent per annum compounded
42.23annually to July 1, 2010, and four percent per annum compounded annually thereafter.
42.24EFFECTIVE DATE.This section is effective July 1, 2010.

42.25    Sec. 64. Minnesota Statutes 2008, section 354A.37, subdivision 2, is amended to read:
42.26    Subd. 2. Eligibility for deferred retirement annuity. (a) Any coordinated member
42.27who ceases to render teaching services for the school district in which the teachers
42.28retirement fund association is located, with sufficient allowable service credit to meet
42.29the minimum service requirements specified in section 354A.31, subdivision 1, shall be
42.30entitled to a deferred retirement annuity in lieu of a refund pursuant to subdivision 1. The
42.31deferred retirement annuity shall be computed pursuant to section 354A.31 and shall be
42.32augmented as provided in this subdivision. The deferred annuity shall commence upon
43.1application after the person on deferred status attains at least the minimum age specified in
43.2section 354A.31, subdivision 1.
43.3(b) The monthly annuity amount that had accrued when the member ceased to
43.4render teaching service must be augmented from the first day of the month following the
43.5month during which the member ceased to render teaching service to the effective date
43.6of retirement. There is no augmentation if this period is less than three months. For a
43.7member of the St. Paul Teachers Retirement Fund Association, the rate of augmentation
43.8is three percent compounded annually until January 1 of the year following the year in
43.9which the former member attains age 55, and five percent compounded annually after that
43.10date to the effective date of retirement if the employee became an employee before July
43.111, 2006, and at 2.5 percent compounded annually if the employee becomes an employee
43.12after June 30, 2006. For a member of the Duluth Teachers Retirement Fund Association,
43.13the rate of augmentation is three percent compounded annually until January 1 of the year
43.14following the year in which the former member attains age 55, five percent compounded
43.15annually after that date to July 1, 2010, and two percent compounded annually after that
43.16date to the effective date of retirement if the employee became an employee before
43.17July 1, 2006, and at 2.5 percent compounded annually to July 1, 2010, and two percent
43.18compounded annually after that date to the effective date of retirement if the employee
43.19becomes an employee after June 30, 2006. If a person has more than one period of
43.20uninterrupted service, a separate average salary determined under section 354A.31 must
43.21be used for each period, and the monthly annuity amount related to each period must be
43.22augmented as provided in this subdivision. The sum of the augmented monthly annuity
43.23amounts determines the total deferred annuity payable. If a person repays a refund, the
43.24service restored by the repayment must be considered as continuous with the next period
43.25of service for which the person has credit with the fund. If a person does not render
43.26teaching services in any one fiscal year or more consecutive fiscal years and then resumes
43.27teaching service, the formula percentages used from the date of resumption of teaching
43.28service are those applicable to new members. The mortality table and interest assumption
43.29used to compute the annuity are the table established by the fund to compute other
43.30annuities, and the interest assumption under section 356.215 in effect when the member
43.31retires. A period of uninterrupted service for the purpose of this subdivision means a
43.32period of covered teaching service during which the member has not been separated from
43.33active service for more than one fiscal year.
43.34(c) The augmentation provided by this subdivision applies to the benefit provided
43.35in section 354A.35, subdivision 2. The augmentation provided by this subdivision does
44.1not apply to any period in which a person is on an approved leave of absence from an
44.2employer unit.
44.3EFFECTIVE DATE.This section is effective July 1, 2010.

44.4    Sec. 65. Minnesota Statutes 2008, section 354A.37, subdivision 3, is amended to read:
44.5    Subd. 3. Computation of refund amount. A former coordinated member of the
44.6St. Paul Teachers Retirement Fund Association who qualifies for a refund pursuant to
44.7under subdivision 1 shall receive a refund equal to the amount of the former coordinated
44.8member's accumulated employee contributions with interest at the rate of six percent per
44.9annum compounded annually. A former coordinated member of the Duluth Teachers
44.10Retirement Fund Association who qualifies for a refund under subdivision 1 shall receive
44.11a refund equal to the amount of the former coordinated member's accumulated employee
44.12contributions with interest at the rate of six percent per annum compounded annually to
44.13July 1, 2010, and four percent per annum compounded annually thereafter.
44.14EFFECTIVE DATE.This section is effective July 1, 2010.

44.15    Sec. 66. Minnesota Statutes 2008, section 354A.37, subdivision 4, is amended to read:
44.16    Subd. 4. Certain refunds at normal retirement age. Any coordinated member
44.17who has attained the normal retirement age with less than ten years of allowable service
44.18credit and has terminated active teaching service shall be entitled to a refund in lieu of
44.19a proportionate annuity pursuant to section 356.32. The refund for a member of the St.
44.20Paul Teachers Retirement Fund Association shall be equal to the coordinated member's
44.21accumulated employee contributions plus interest at the rate of six percent compounded
44.22annually. The refund for a member of the Duluth Teachers Retirement Fund Association
44.23shall be equal to the coordinated member's accumulated employee contributions plus
44.24interest at the rate of six percent compounded annually to July 1, 2010, and four percent
44.25per annum compounded annually thereafter.
44.26EFFECTIVE DATE.This section is effective July 1, 2010.

44.27    Sec. 67. Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to read:
44.28    Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
44.29the applicable following preretirement interest assumption and the applicable following
44.30postretirement interest assumption:

45.1 45.2 45.3	plan	preretirement interest rate assumption		postretirement interest rate assumption
45.4	general state employees retirement plan		8.5%	6.0%
45.5	correctional state employees retirement plan		8.5	6.0
45.6	State Patrol retirement plan		8.5	6.0
45.7	legislators retirement plan		8.5	6.0
45.8	elective state officers retirement plan		8.5	6.0
45.9	judges retirement plan		8.5	6.0
45.10	general public employees retirement plan		8.5	6.0
45.11	public employees police and fire retirement plan		8.5	6.0
45.12 45.13	local government correctional service retirement plan		8.5	6.0
45.14	teachers retirement plan		8.5	6.0
45.15	Minneapolis employees retirement plan		6.0	5.0
45.16	Duluth teachers retirement plan		8.5	8.5
45.17	St. Paul teachers retirement plan		8.5	8.5
45.18	Minneapolis Police Relief Association		6.0	6.0
45.19	Fairmont Police Relief Association		5.0	5.0
45.20	Minneapolis Fire Department Relief Association		6.0	6.0
45.21	Virginia Fire Department Relief Association		5.0	5.0
45.22	Bloomington Fire Department Relief Association		6.0	6.0
45.23 45.24	local monthly benefit volunteer firefighters relief associations		5.0	5.0

45.25    (b) Before July 1, 2010, the actuarial valuation must use the applicable following
45.26single rate future salary increase assumption, the applicable following modified single
45.27rate future salary increase assumption, or the applicable following graded rate future
45.28salary increase assumption:
45.29    (1) single rate future salary increase assumption

45.30 45.31	plan	future salary increase assumption
45.32	legislators retirement plan		5.0%
45.33	judges retirement plan		4.0
45.34	Minneapolis Police Relief Association		4.0
45.35	Fairmont Police Relief Association		3.5
45.36 45.37	Minneapolis Fire Department Relief Association		4.0
45.38	Virginia Fire Department Relief Association		3.5
45.39 45.40	Bloomington Fire Department Relief Association		4.0

45.41    (2) modified single rate future salary increase assumption

46.1 46.2	plan		future salary increase assumption
46.3 46.4 46.5 46.6	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

46.7    (3) age-related select and ultimate future salary increase assumption or graded rate
46.8future salary increase assumption

46.9 46.10	plan	future salary increase assumption
46.11 46.12	general state employees retirement plan	select calculation and assumption A
46.13	correctional state employees retirement plan	assumption H G
46.14	State Patrol retirement plan	assumption G F
46.15 46.16	general public employees retirement plan	select calculation and assumption B
46.17	public employees police and fire fund retirement plan	assumption C B
46.18	local government correctional service retirement plan	assumption G F
46.19	teachers retirement plan	assumption D C
46.20	Duluth teachers retirement plan	assumption E D
46.21	St. Paul teachers retirement plan	assumption F E

46.22The select calculation is: during the
46.23designated select period, a designated
46.24percentage rate is multiplied by the result of
46.25the designated integer minus T, where T is the
46.26number of completed years of service, and is
46.27added to the applicable future salary increase
46.28assumption. The designated select period is
46.29five years and the designated integer is five
46.30for the general state employees retirement
46.31plan and the general public employees
46.32retirement plan. The designated select period
46.33is ten years and the designated integer is ten
46.34for all other retirement plans covered by
46.35this clause. The designated percentage rate
46.36is: (1) 0.2 percent for the correctional state
46.37employees retirement plan, the State Patrol
46.38retirement plan, the public employees police
46.39and fire plan, and the local government
46.40correctional service plan; (2) 0.6 percent
47.1for the general state employees retirement
47.2plan and the general public employees
47.3retirement plan; and (3) 0.3 percent for the
47.4teachers retirement plan, the Duluth Teachers
47.5Retirement Fund Association, and the St.
47.6Paul Teachers Retirement Fund Association.
47.7The select calculation for the Duluth Teachers
47.8Retirement Fund Association is 8.00 percent
47.9per year for service years one through seven,
47.107.25 percent per year for service years seven
47.11and eight, and 6.50 percent per year for
47.12service years eight and nine.
47.13    The ultimate future salary increase assumption is:

47.14	age	A	B	CB	DC	ED	FE	GF	HG
47.15	16	5.95%	5.95%	11.00%	7.70%	8.00%	6.90%	7.7500%	7.2500%
47.16	17	5.90	5.90	11.00	7.65	8.00	6.90	7.7500	7.2500
47.17	18	5.85	5.85	11.00	7.60	8.00	6.90	7.7500	7.2500
47.18	19	5.80	5.80	11.00	7.55	8.00	6.90	7.7500	7.2500
47.19	20	5.75	5.40	11.00	5.50	6.90	6.90	7.7500	7.2500
47.20	21	5.75	5.40	11.00	5.50	6.90	6.90	7.1454	6.6454
47.21	22	5.75	5.40	10.50	5.50	6.90	6.90	7.0725	6.5725
47.22	23	5.75	5.40	10.00	5.50	6.85	6.85	7.0544	6.5544
47.23	24	5.75	5.40	9.50	5.50	6.80	6.80	7.0363	6.5363
47.24	25	5.75	5.40	9.00	5.50	6.75	6.75	7.0000	6.5000
47.25	26	5.75	5.36	8.70	5.50	6.70	6.70	7.0000	6.5000
47.26	27	5.75	5.32	8.40	5.50	6.65	6.65	7.0000	6.5000
47.27	28	5.75	5.28	8.10	5.50	6.60	6.60	7.0000	6.5000
47.28	29	5.75	5.24	7.80	5.50	6.55	6.55	7.0000	6.5000
47.29	30	5.75	5.20	7.50	5.50	6.50	6.50	7.0000	6.5000
47.30	31	5.75	5.16	7.30	5.50	6.45	6.45	7.0000	6.5000
47.31	32	5.75	5.12	7.10	5.50	6.40	6.40	7.0000	6.5000
47.32	33	5.75	5.08	6.90	5.50	6.35	6.35	7.0000	6.5000
47.33	34	5.75	5.04	6.70	5.50	6.30	6.30	7.0000	6.5000
47.34	35	5.75	5.00	6.50	5.50	6.25	6.25	7.0000	6.5000
47.35	36	5.75	4.96	6.30	5.50	6.20	6.20	6.9019	6.4019
47.36	37	5.75	4.92	6.10	5.50	6.15	6.15	6.8074	6.3074
47.37	38	5.75	4.88	5.90	5.40	6.10	6.10	6.7125	6.2125
47.38	39	5.75	4.84	5.70	5.30	6.05	6.05	6.6054	6.1054
47.39	40	5.75	4.80	5.50	5.20	6.00	6.00	6.5000	6.0000
47.40	41	5.75	4.76	5.40	5.10	5.90	5.95	6.3540	5.8540
47.41	42	5.75	4.72	5.30	5.00	5.80	5.90	6.2087	5.7087
48.1	43	5.65	4.68	5.20	4.90	5.70	5.85	6.0622	5.5622
48.2	44	5.55	4.64	5.10	4.80	5.60	5.80	5.9048	5.4078
48.3	45	5.45	4.60	5.00	4.70	5.50	5.75	5.7500	5.2500
48.4	46	5.35	4.56	4.95	4.60	5.40	5.70	5.6940	5.1940
48.5	47	5.25	4.52	4.90	4.50	5.30	5.65	5.6375	5.1375
48.6	48	5.15	4.48	4.85	4.50	5.20	5.60	5.5822	5.0822
48.7	49	5.05	4.44	4.80	4.50	5.10	5.55	5.5404	5.0404
48.8	50	4.95	4.40	4.75	4.50	5.00	5.50	5.5000	5.0000
48.9	51	4.85	4.36	4.75	4.50	4.90	5.45	5.4384	4.9384
48.10	52	4.75	4.32	4.75	4.50	4.80	5.40	5.3776	4.8776
48.11	53	4.65	4.28	4.75	4.50	4.70	5.35	5.3167	4.8167
48.12	54	4.55	4.24	4.75	4.50	4.60	5.30	5.2826	4.7826
48.13	55	4.45	4.20	4.75	4.50	4.50	5.25	5.2500	4.7500
48.14	56	4.35	4.16	4.75	4.50	4.40	5.20	5.2500	4.7500
48.15	57	4.25	4.12	4.75	4.50	4.30	5.15	5.2500	4.7500
48.16	58	4.25	4.08	4.75	4.60	4.20	5.10	5.2500	4.7500
48.17	59	4.25	4.04	4.75	4.70	4.10	5.05	5.2500	4.7500
48.18	60	4.25	4.00	4.75	4.80	4.00	5.00	5.2500	4.7500
48.19	61	4.25	4.00	4.75	4.90	3.90	5.00	5.2500	4.7500
48.20	62	4.25	4.00	4.75	5.00	3.80	5.00	5.2500	4.7500
48.21	63	4.25	4.00	4.75	5.10	3.70	5.00	5.2500	4.7500
48.22	64	4.25	4.00	4.75	5.20	3.60	5.00	5.2500	4.7500
48.23	65	4.25	4.00	4.75	5.20	3.50	5.00	5.2500	4.7500
48.24	66	4.25	4.00	4.75	5.20	3.50	5.00	5.2500	4.7500
48.25	67	4.25	4.00	4.75	5.20	3.50	5.00	5.2500	4.7500
48.26	68	4.25	4.00	4.75	5.20	3.50	5.00	5.2500	4.7500
48.27	69	4.25	4.00	4.75	5.20	3.50	5.00	5.2500	4.7500
48.28	70	4.25	4.00	4.75	5.20	3.50	5.00	5.2500	4.7500
48.29	71	4.25	4.00		5.20

48.30(4) service-related ultimate future salary increase assumption

48.31 48.32	service length	general employees retirement plan of the Public Employees Retirement Association
48.33	1	12.03%
48.34	2	8.90
48.35	3	7.46
48.36	4	6.58
48.37	5	5.97
48.38	6	5.52
48.39	7	5.16
48.40	8	4.87
48.41	9	4.63
48.42	10	4.42
48.43	11	4.24
49.1	12	4.08
49.2	13	3.94
49.3	14	3.82
49.4	15	3.70
49.5	16	3.60
49.6	17	3.51
49.7	18	3.50
49.8	19	3.50
49.9	20	3.50
49.10	21	3.50
49.11	22	3.50
49.12	23	3.50
49.13	24	3.50
49.14	25	3.50
49.15	26	3.50
49.16	27	3.50
49.17	28	3.50
49.18	29	3.50
49.19	30 or more	3.50

49.20    (c) Before July 2, 2010, the actuarial valuation must use the applicable following
49.21payroll growth assumption for calculating the amortization requirement for the unfunded
49.22actuarial accrued liability where the amortization retirement is calculated as a level
49.23percentage of an increasing payroll:

49.24 49.25	plan	payroll growth assumption
49.26	general state employees retirement plan		4.50%
49.27	correctional state employees retirement plan		4.50
49.28	State Patrol retirement plan		4.50
49.29	legislators retirement plan		4.50
49.30	judges retirement plan		4.00
49.31 49.32	general public employees retirement plan of the Public Employees Retirement Association		4.504.00
49.33	public employees police and fire retirement plan		4.50
49.34 49.35	local government correctional service retirement plan		4.50
49.36	teachers retirement plan		4.50
49.37	Duluth teachers retirement plan		4.50
49.38	St. Paul teachers retirement plan		5.00

49.39    (d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to
49.40apply, unless a different salary assumption or a different payroll increase assumption:
49.41    (1) has been proposed by the governing board of the applicable retirement plan;
50.1    (2) is accompanied by the concurring recommendation of the actuary retained under
50.2section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the
50.3most recent actuarial valuation report if section 356.214 does not apply; and
50.4    (3) has been approved or deemed approved under subdivision 18.
50.5EFFECTIVE DATE.This section is effective the day following final enactment.

50.6    Sec. 68. Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11,
50.7is amended to read:
50.8    Subd. 11. Amortization contributions. (a) In addition to the exhibit indicating
50.9the level normal cost, the actuarial valuation of the retirement plan must contain an
50.10exhibit for financial reporting purposes indicating the additional annual contribution
50.11sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit
50.12for contribution determination purposes indicating the additional contribution sufficient
50.13to amortize the unfunded actuarial accrued liability. For the retirement plans listed in
50.14subdivision 8, paragraph (c), the additional contribution must be calculated on a level
50.15percentage of covered payroll basis by the established date for full funding in effect when
50.16the valuation is prepared, assuming annual payroll growth at the applicable percentage
50.17rate set forth in subdivision 8, paragraph (c). For all other retirement plans, the additional
50.18annual contribution must be calculated on a level annual dollar amount basis.
50.19    (b) For any retirement plan other than the Minneapolis Employees Retirement Fund,
50.20the general employees retirement plan of the Public Employees Retirement Association,
50.21the general state employees retirement plan of the Minnesota State Retirement System,
50.22and the St. Paul Teachers Retirement Fund Association, if there has not been a change in
50.23the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a
50.24change in the benefit plan governing annuities and benefits payable from the fund, a
50.25change in the actuarial cost method used in calculating the actuarial accrued liability of all
50.26or a portion of the fund, or a combination of the three, which change or changes by itself
50.27or by themselves without inclusion of any other items of increase or decrease produce a
50.28net increase in the unfunded actuarial accrued liability of the fund, the established date for
50.29full funding is the first actuarial valuation date occurring after June 1, 2020.
50.30    (c) For any retirement plan other than the Minneapolis Employees Retirement
50.31Fund and the general employees retirement plan of the Public Employees Retirement
50.32Association, if there has been a change in any or all of the actuarial assumptions used
50.33for calculating the actuarial accrued liability of the fund, a change in the benefit plan
50.34governing annuities and benefits payable from the fund, a change in the actuarial cost
50.35method used in calculating the actuarial accrued liability of all or a portion of the fund,
51.1or a combination of the three, and the change or changes, by itself or by themselves and
51.2without inclusion of any other items of increase or decrease, produce a net increase in the
51.3unfunded actuarial accrued liability in the fund, the established date for full funding must
51.4be determined using the following procedure:
51.5    (i) the unfunded actuarial accrued liability of the fund must be determined in
51.6accordance with the plan provisions governing annuities and retirement benefits and the
51.7actuarial assumptions in effect before an applicable change;
51.8    (ii) the level annual dollar contribution or level percentage, whichever is applicable,
51.9needed to amortize the unfunded actuarial accrued liability amount determined under item
51.10(i) by the established date for full funding in effect before the change must be calculated
51.11using the interest assumption specified in subdivision 8 in effect before the change;
51.12    (iii) the unfunded actuarial accrued liability of the fund must be determined in
51.13accordance with any new plan provisions governing annuities and benefits payable from
51.14the fund and any new actuarial assumptions and the remaining plan provisions governing
51.15annuities and benefits payable from the fund and actuarial assumptions in effect before
51.16the change;
51.17    (iv) the level annual dollar contribution or level percentage, whichever is applicable,
51.18needed to amortize the difference between the unfunded actuarial accrued liability amount
51.19calculated under item (i) and the unfunded actuarial accrued liability amount calculated
51.20under item (iii) over a period of 30 years from the end of the plan year in which the
51.21applicable change is effective must be calculated using the applicable interest assumption
51.22specified in subdivision 8 in effect after any applicable change;
51.23    (v) the level annual dollar or level percentage amortization contribution under item
51.24(iv) must be added to the level annual dollar amortization contribution or level percentage
51.25calculated under item (ii);
51.26    (vi) the period in which the unfunded actuarial accrued liability amount determined
51.27in item (iii) is amortized by the total level annual dollar or level percentage amortization
51.28contribution computed under item (v) must be calculated using the interest assumption
51.29specified in subdivision 8 in effect after any applicable change, rounded to the nearest
51.30integral number of years, but not to exceed 30 years from the end of the plan year in
51.31which the determination of the established date for full funding using the procedure set
51.32forth in this clause is made and not to be less than the period of years beginning in the
51.33plan year in which the determination of the established date for full funding using the
51.34procedure set forth in this clause is made and ending by the date for full funding in effect
51.35before the change; and
52.1    (vii) the period determined under item (vi) must be added to the date as of which
52.2the actuarial valuation was prepared and the date obtained is the new established date
52.3for full funding.
52.4    (d) For the Minneapolis Employees Retirement Fund, the established date for full
52.5funding is June 30, 2020.
52.6    (e) For the general employees retirement plan of the Public Employees Retirement
52.7Association, the established date for full funding is June 30, 2031.
52.8    (f) For the Teachers Retirement Association, the established date for full funding is
52.9June 30, 2037.
52.10    (g) For the correctional state employees retirement plan of the Minnesota State
52.11Retirement System, the established date for full funding is June 30, 2038.
52.12    (h) For the judges retirement plan, the established date for full funding is June
52.1330, 2038.
52.14    (i) For the public employees police and fire retirement plan, the established date
52.15for full funding is June 30, 2038.
52.16    (j) For the St. Paul Teachers Retirement Fund Association, the established date for
52.17full funding is June 30 of the 25th year from the valuation date. In addition to other
52.18requirements of this chapter, the annual actuarial valuation shall contain an exhibit
52.19indicating the funded ratio and the deficiency or sufficiency in annual contributions when
52.20comparing liabilities to the market value of the assets of the fund as of the close of the
52.21most recent fiscal year.
52.22    (k) For the general state employees retirement plan of the Minnesota State
52.23Retirement System, the established date for full funding is June 30, 2040.
52.24(l) For the retirement plans for which the annual actuarial valuation indicates an
52.25excess of valuation assets over the actuarial accrued liability, the valuation assets in
52.26excess of the actuarial accrued liability must be recognized as a reduction in the current
52.27contribution requirements by an amount equal to the amortization of the excess expressed
52.28as a level percentage of pay over a 30-year period beginning anew with each annual
52.29actuarial valuation of the plan.
52.30EFFECTIVE DATE.This section is effective the day following final enactment.

52.31    Sec. 69. Minnesota Statutes 2008, section 356.30, subdivision 1, is amended to read:
52.32    Subdivision 1. Eligibility; computation of annuity. (a) Notwithstanding any
52.33provisions of the laws governing the retirement plans enumerated in subdivision 3, a
52.34person who has met the qualifications of paragraph (b) may elect to receive a retirement
52.35annuity from each enumerated retirement plan in which the person has at least one-half
53.1year of allowable service, based on the allowable service in each plan, subject to the
53.2provisions of paragraph (c).
53.3(b) A person may receive, upon retirement, a retirement annuity from each
53.4enumerated retirement plan in which the person has at least one-half year of allowable
53.5service, and augmentation of a deferred annuity calculated at the appropriate rate under
53.6the laws governing each public pension plan or fund named in subdivision 3, based on
53.7the date of the person's initial entry into public employment from the date the person
53.8terminated all public service if:
53.9(1) the person has allowable service totaling an amount that allows the person to
53.10receive an annuity in any two or more of the enumerated plans;
53.11(2) the person has sufficient allowable service in total that equals or exceeds the
53.12applicable service credit vesting requirement of the retirement plan with the longest
53.13applicable service credit vesting requirement; and
53.14(2) (3) the person has not begun to receive an annuity from any enumerated plan or
53.15the person has made application for benefits from each applicable plan and the effective
53.16dates of the retirement annuity with each plan under which the person chooses to receive
53.17an annuity are within a one-year period.
53.18(c) The retirement annuity from each plan must be based upon the allowable service,
53.19accrual rates, and average salary in the applicable plan except as further specified or
53.20modified in the following clauses:
53.21(1) the laws governing annuities must be the law in effect on the date of termination
53.22from the last period of public service under a covered retirement plan with which the
53.23person earned a minimum of one-half year of allowable service credit during that
53.24employment;
53.25(2) the "average salary" on which the annuity from each covered plan in which
53.26the employee has credit in a formula plan must be based on the employee's highest five
53.27successive years of covered salary during the entire service in covered plans;
53.28(3) the accrual rates to be used by each plan must be those percentages prescribed by
53.29each plan's formula as continued for the respective years of allowable service from one
53.30plan to the next, recognizing all previous allowable service with the other covered plans;
53.31(4) the allowable service in all the plans must be combined in determining eligibility
53.32for and the application of each plan's provisions in respect to reduction in the annuity
53.33amount for retirement prior to normal retirement age; and
53.34(5) the annuity amount payable for any allowable service under a nonformula plan
53.35of a covered plan must not be affected, but such service and covered salary must be used
53.36in the above calculation.
54.1(d) This section does not apply to any person whose final termination from the last
54.2public service under a covered plan was before May 1, 1975.
54.3(e) For the purpose of computing annuities under this section, the accrual rates
54.4used by any covered plan, except the public employees police and fire plan, the judges
54.5retirement fund, and the State Patrol retirement plan, must not exceed the percent specified
54.6in section 356.315, subdivision 4, per year of service for any year of service or fraction
54.7thereof. The formula percentage used by the judges retirement fund must not exceed the
54.8percentage rate specified in section 356.315, subdivision 8, per year of service for any
54.9year of service or fraction thereof. The accrual rate used by the public employees police
54.10and fire plan and the State Patrol retirement plan must not exceed the percentage rate
54.11specified in section 356.315, subdivision 6, per year of service for any year of service or
54.12fraction thereof. The accrual rate or rates used by the legislators retirement plan must not
54.13exceed 2.5 percent, but this limit does not apply to the adjustment provided under section
54.143A.02, subdivision 1 , paragraph (c).
54.15(f) Any period of time for which a person has credit in more than one of the covered
54.16plans must be used only once for the purpose of determining total allowable service.
54.17(g) If the period of duplicated service credit is more than one-half year, or the person
54.18has credit for more than one-half year, with each of the plans, each plan must apply its
54.19formula to a prorated service credit for the period of duplicated service based on a fraction
54.20of the salary on which deductions were paid to that fund for the period divided by the total
54.21salary on which deductions were paid to all plans for the period.
54.22(h) If the period of duplicated service credit is less than one-half year, or when
54.23added to other service credit with that plan is less than one-half year, the service credit
54.24must be ignored and a refund of contributions made to the person in accord with that
54.25plan's refund provisions.
54.26EFFECTIVE DATE.This section is effective the day following final enactment.

54.27    Sec. 70. Minnesota Statutes 2008, section 356.302, subdivision 3, is amended to read:
54.28    Subd. 3. General employee plan eligibility requirements. A disabled member
54.29of a covered retirement plan who has credit for allowable service in a combination of
54.30general employee retirement plans is entitled to a combined service disability benefit
54.31if the member:
54.32(1) is less than the normal retirement age on the date of the application for the
54.33disability benefit;
54.34(2) has become totally and permanently disabled;
55.1(3) has credit for allowable service in any combination of general employee
55.2retirement plans totaling at least three years the number of years required by the applicable
55.3retirement plan with the longest service credit requirement for disability benefit receipt;
55.4(4) has credit for at least one-half year of allowable service with the current general
55.5employee retirement plan before the commencement of the disability;
55.6(5) has at least three continuous years of allowable service credit by the general
55.7employee retirement plan or has at least a total of three years of allowable service credit
55.8by a combination of general employee retirement plans in a 72-month period during
55.9which no interruption of allowable service credit from a termination of employment
55.10exceeded 29 days; and
55.11(6) was not receiving a retirement annuity or disability benefit from any covered
55.12general employee retirement plan at the time of the commencement of the disability.
55.13EFFECTIVE DATE.This section is effective the day following final enactment.

55.14    Sec. 71. Minnesota Statutes 2008, section 356.302, subdivision 4, is amended to read:
55.15    Subd. 4. Public safety plan eligibility requirements. A disabled member of a
55.16covered retirement plan who has credit for allowable service in a combination of public
55.17safety employee retirement plans is entitled to a combined service disability benefit if the
55.18member:
55.19(1) has become occupationally disabled;
55.20(2) has credit for allowable service in any combination of public safety employee
55.21retirement plans totaling at least one year the minimum period of service credit required by
55.22the applicable retirement plan with the longest service credit eligibility requirement for the
55.23receipt of a duty-related disability benefit if the disability is duty-related or totaling at least
55.24three years the minimum period of service credit required by the applicable retirement
55.25plan with the longest service credit eligibility requirement for a disability benefit that is
55.26not duty-related if the disability is not duty-related;
55.27(3) has credit for at least one-half year of allowable service with the current public
55.28safety employee retirement plan before the commencement of the disability; and
55.29(4) was not receiving a retirement annuity or disability benefit from any covered
55.30public safety employee retirement plan at the time of the commencement of the disability.
55.31EFFECTIVE DATE.This section is effective the day following final enactment.

55.32    Sec. 72. Minnesota Statutes 2008, section 356.302, subdivision 5, is amended to read:
56.1    Subd. 5. General and public safety plan eligibility requirements. A disabled
56.2member of a covered retirement plan who has credit for allowable service in a combination
56.3of both a public safety employee retirement plan and general employee retirement plan
56.4must meet the qualifying requirements in subdivisions 3 and 4 to receive a combined
56.5service disability benefit from the applicable general employee and public safety
56.6employee retirement plans, except that the person need only be a member of a covered
56.7retirement plan at the time of the commencement of the disability, that the person must
56.8have allowable service credit for the applicable retirement plan with the longest service
56.9credit eligibility requirement for the receipt of a disability benefit, and that the minimum
56.10allowable service requirements of subdivisions 3, clauses (3) and (5), and 4, clauses (3)
56.11and (4), may be met in any combination of covered retirement plans.
56.12EFFECTIVE DATE.This section is effective the day following final enactment.

56.13    Sec. 73. Minnesota Statutes 2008, section 356.303, subdivision 2, is amended to read:
56.14    Subd. 2. Entitlement; eligibility. Notwithstanding any provision of law to the
56.15contrary governing a covered retirement plan, a person who is the survivor of a deceased
56.16member of a covered retirement plan may receive a combined service survivor benefit
56.17from each covered retirement plan in which the deceased member had credit for at least
56.18one-half year of allowable service if the deceased member:
56.19(1) had credit for sufficient allowable service in any combination of covered
56.20retirement plans to meet any the minimum allowable service credit requirement of the
56.21applicable covered retirement fund with the longest allowable service credit requirement
56.22for qualification for a survivor benefit or annuity;
56.23(2) had credit for at least one-half year of allowable service with the most recent
56.24covered retirement plan before the date of death and was an active member of that covered
56.25retirement plan on the date of death; and
56.26(3) was not receiving a retirement annuity from any covered retirement plan on the
56.27date of death.
56.28EFFECTIVE DATE.This section is effective the day following final enactment.

56.29    Sec. 74. Minnesota Statutes 2008, section 356.315, subdivision 5, is amended to read:
56.30    Subd. 5. Correctional plan members. The applicable benefit accrual rate is 2.4
56.31percent if employed as a correctional state employee before July 1, 2010, or 2.2 percent if
56.32employed as a correctional state employee after June 30, 2010.
56.33EFFECTIVE DATE.This section is effective the day following final enactment.

57.1    Sec. 75. Minnesota Statutes 2009 Supplement, section 356.415, subdivision 1, is
57.2amended to read:
57.3    Subdivision 1. Annual postretirement adjustments; generally. (a) Except as
57.4otherwise provided in subdivisions 1a, 1b, 1c, or 1d, retirement annuity, disability benefit,
57.5or survivor benefit recipients of a covered retirement plan are entitled to a postretirement
57.6adjustment annually on January 1, as follows:
57.7(1) a postretirement increase of 2.5 percent must be applied each year, effective
57.8January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
57.9been receiving an annuity or a benefit for at least 12 full months prior to the January 1
57.10increase; and
57.11(2) for each annuitant or benefit recipient who has been receiving an annuity or a
57.12benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5
57.13percent for each month that the person has been receiving an annuity or benefit must be
57.14applied, effective on January 1 following the calendar year in which the person has been
57.15retired for less than 12 months.
57.16(b) The increases provided by this section subdivision commence on January 1, 2010.
57.17(c) An increase in annuity or benefit payments under this section must be made
57.18automatically unless written notice is filed by the annuitant or benefit recipient with the
57.19executive director of the covered retirement plan requesting that the increase not be made.
57.20(d) The retirement annuity payable to a person who retires before becoming eligible
57.21for Social Security benefits and who has elected the optional payment as provided in
57.22section 353.29, subdivision 6, or 354.35 must be treated as the sum of a period certain
57.23retirement annuity and a life retirement annuity for the purposes of any postretirement
57.24adjustment. The period certain retirement annuity plus the life retirement annuity must be
57.25the annuity amount payable until age 62 for section 353.29, subdivision 6, or age 62, 65,
57.26or normal retirement age, as selected by the member at retirement, for an annuity amount
57.27payable under section 354.35. A postretirement adjustment granted on the period certain
57.28retirement annuity must terminate when the period certain retirement annuity terminates.
57.29EFFECTIVE DATE.This section is effective the day following final enactment.

57.30    Sec. 76. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding
57.31subdivisions to read:
57.32    Subd. 1a. Annual postretirement adjustments; Minnesota State Retirement
57.33System-administered plans. (a) Retirement annuity, disability benefit, or survivor benefit
57.34recipients of the legislators retirement plan, the general state employees retirement plan,
57.35the correctional state employees retirement plan, the State Patrol retirement plan, the
58.1elected state officers retirement plan, the unclassified state employees retirement program,
58.2and the judges retirement plan are entitled to a postretirement adjustment annually on
58.3January 1, as follows:
58.4(1) a postretirement increase of two percent must be applied each year, effective on
58.5January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
58.6has been receiving an annuity or a benefit for at least 18 full months before the January 1
58.7increase; and
58.8(2) for each annuitant or benefit recipient who has been receiving an annuity or
58.9a benefit for at least six full months, an annual postretirement increase of 1/12 of two
58.10percent for each month that the person has been receiving an annuity or benefit must be
58.11applied, effective January 1, following the calendar year in which the person has been
58.12retired for at least six months, but has been retired for less than 18 months.
58.13(b) The increases provided by this subdivision commence on January 1, 2011.
58.14Increases under this subdivision for the general state employees retirement plan, the
58.15correctional state employees retirement plan, the State Patrol retirement plan, or the judges
58.16retirement plan terminate on December 31 of the calendar year in which the actuarial
58.17valuation prepared by the approved actuary under sections 356.214 and 356.215 and the
58.18standards for actuarial work promulgated by the Legislative Commission on Pensions
58.19and Retirement indicates that the market value of assets of the retirement plan equals or
58.20exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases
58.21under subdivision 1 recommence after that date. Increases under this subdivision for
58.22the legislators retirement plan or the elected state officers retirement plan terminate
58.23on December 31 of the calendar year in which the actuarial valuation prepared by the
58.24approved actuary under sections 356.214 and 356.215 and the standards for actuarial work
58.25promulgated by the Legislative Commission on Pensions and Retirement indicates that the
58.26market value of assets of the general state employees retirement plan equals or exceeds
58.2790 percent of the actuarial accrued liability of the retirement plan and increases under
58.28subdivision 1 recommence after that date.
58.29(c) An increase in annuity or benefit payments under this subdivision must be made
58.30automatically unless written notice is filed by the annuitant or benefit recipient with the
58.31executive director of the applicable covered retirement plan requesting that the increase
58.32not be made.
58.33    Subd. 1b. Annual postretirement adjustments; general employees retirement
58.34plan and local government correctional retirement plan of the Public Employees
58.35Retirement Association. (a) Retirement annuity, disability benefit or survivor benefit
58.36recipients of the general employees retirement plan of the Public Employees Retirement
59.1Association and the local government correctional service retirement plan are entitled to a
59.2postretirement adjustment annually on January 1, as follows:
59.3(1) for January 1, 2011, and each successive January 1 until funding stability is
59.4restored for the applicable retirement plan, a postretirement increase of one percent must
59.5be applied each year, effective on January 1, to the monthly annuity or benefit amount of
59.6each annuitant or benefit recipient who has been receiving an annuity or benefit for at least
59.712 full months as of the current June 30;
59.8(2) for January 1, 2011, and each successive January 1 until funding stability is
59.9restored for the applicable retirement plan, for each annuitant or benefit recipient who has
59.10been receiving an annuity or a benefit for at least one full month, but less than 12 full
59.11months as of the current June 30, an annual postretirement increase of 1/12 of one percent
59.12for each month the person has been receiving an annuity or benefit must be applied;
59.13(3) for each January 1 following the restoration of funding stability for the applicable
59.14retirement plan, a postretirement increase of 2.5 percent must be applied each year,
59.15effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit
59.16recipient who has been receiving an annuity or benefit for at least 12 full months as of
59.17the current June 30; and
59.18(4) for each January 1 following restoration of funding stability for the applicable
59.19retirement plan, for each annuity or benefit recipient who has been receiving an annuity or
59.20a benefit for at least one full month, but less than 12 full months as of the current June
59.2130, an annual postretirement increase of 1/12 of 2.5 percent for each month the person
59.22has been receiving an annuity or benefit must be applied.
59.23(b) Funding stability is restored when the market value of assets of the applicable
59.24retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
59.25applicable plan in the most recent prior actuarial valuation prepared under section 356.215
59.26and the standards for actuarial work by the approved actuary retained by the Public
59.27Employees Retirement Association under section 356.214.
59.28(c) If, after applying the increase as provided for in clauses (3) and (4) of this
59.29subdivision, the market value of the applicable retirement plan is determined in the next
59.30subsequent actuarial valuation prepared under section 356.215 to be less than 90 percent
59.31of the actuarial accrued liability of any of the applicable Public Employees Retirement
59.32Association plans, the increase provided in clauses (1) and (2) are to be applied as of the
59.33next successive January until funding stability is again restored.
59.34(d) An increase in annuity or benefit payments under this section must be made
59.35automatically unless written notice is filed by the annuitant or benefit recipient with the
60.1executive director of the Public Employees Retirement Association requesting that the
60.2increase not be made.
60.3(e) The retirement annuity payable to a person who retires before becoming eligible
60.4for Social Security benefits and who has elected the optional payment, as provided in
60.5section 353.29, subdivision 6, must be treated as the sum of a period-certain retirement
60.6annuity and a life retirement annuity for the purposes of any postretirement adjustment.
60.7The period-certain retirement annuity plus the life retirement annuity must be the
60.8annuity amount payable until age 62 for section 353.29, subdivision 6. A postretirement
60.9adjustment granted on the period-certain retirement annuity must terminate when the
60.10period-certain retirement annuity terminates.
60.11    Subd. 1c. Annual postretirement adjustments; PERA-P&F. (a) Retirement
60.12annuity, disability benefit, or survivor benefit recipients of the public employees police
60.13and fire retirement plan are entitled to a postretirement adjustment annually on January
60.141, as follows:
60.15(1) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit
60.16recipient who has been receiving the annuity or benefit for at least 12 full months as of the
60.17immediate preceding June 30, an amount equal to one percent in each year;
60.18(2) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit
60.19recipient who has been receiving the annuity or benefit for at least one full month as of the
60.20immediate preceding June 30, an amount equal to 1/12 of one percent in each year;
60.21(3) for January 1, 2013, and each successive January 1 that follows the loss of
60.22funding stability as defined under paragraph (b) until funding stability as defined under
60.23paragraph (b) is again restored, for each annuitant or benefit recipient who has been
60.24receiving the annuity or benefit for at least 12 full months as of the immediate preceding
60.25June 30, an amount equal to the percentage increase in the Consumer Price Index for urban
60.26wage earners and clerical workers-all items published by the Bureau of Labor Statistics of
60.27the United States Department of Labor between the immediate preceding June 30 and the
60.28June 30 occurring 12 months previous, but not to exceed 1.5 percent;
60.29(4) for January 1, 2013, and each successive January 1 that follows the loss of
60.30funding stability as defined under paragraph (b) until funding stability as defined under
60.31paragraph (b) is again restored, for each annuitant or benefit recipient who has been
60.32receiving the annuity or benefit for at least one full month as of the immediate preceding
60.33June 30, an amount equal to 1/12 of the percentage increase in the Consumer Price Index
60.34for urban wage earners and clerical workers-all items published by the Bureau of Labor
60.35Statistics of the United States Department of Labor between the immediate preceding
60.36June 30 and the June 30 occurring 12 months previous for each full month of annuity
61.1or benefit receipt, but not to exceed 1/12 of 1.5 percent for each full month of annuity
61.2or benefit receipt;
61.3(5) for each January 1 following the restoration of funding stability as defined
61.4under paragraph (b) and during the continuation of funding stability as defined under
61.5paragraph (b), for each annuitant or benefit recipient who has been receiving the annuity
61.6or benefit for at least 12 full months as of the immediate preceding June 30, an amount
61.7equal to the percentage increase in the Consumer Price Index for urban wage earners and
61.8clerical workers-all items published by the Bureau of Labor Statistics of the United States
61.9Department of Labor between the immediate preceding June 30 and the June 30 occurring
61.1012 months previous, but not to exceed 2.5 percent; and
61.11(6) for each January 1 following the restoration of funding stability as defined under
61.12paragraph (b) and during the continuation of funding stability as defined under paragraph
61.13(b), for each annuitant or benefit recipient who has been receiving the annuity or benefit
61.14for at least one full month as of the immediate preceding June 30, an amount equal to
61.151/12 of the percentage increase in the Consumer Price Index for urban wage earners and
61.16clerical workers-all items published by the Bureau of Labor Statistics of the United States
61.17Department of Labor between the immediate preceding June 30 and the June 30 occurring
61.1812 months previous for each full month of annuity or benefit receipt, but not to exceed
61.191/12 of 2.5 percent for each full month of annuity or benefit receipt.
61.20(b) Funding stability is restored when the market value of assets of the public
61.21employees police and fire retirement plan equal or exceed 90 percent of the actuarial
61.22accrued liabilities of the applicable plan in the most recent prior actuarial valuation
61.23prepared under section 356.215 and under the standards for actuarial work of the
61.24Legislative Commission and Pensions and Retirement by the approved actuary retained by
61.25the Public Employees Retirement Association under section 356.214.
61.26(c) An increase in annuity or benefit payments under this section must be made
61.27automatically unless written notice is filed by the annuitant or benefit recipient with the
61.28executive director of the Public Employees Retirement Association requesting that the
61.29increase not be made.
61.30    Subd. 1d. Teachers Retirement Association annual postretirement adjustments.
61.31(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers
61.32Retirement Association are entitled to a postretirement adjustment annually on January
61.331, as follows:
61.34(1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;
61.35(2) for January 1, 2013, and each successive January 1 until funding stability is
61.36restored, a postretirement increase of two percent must be applied each year, effective on
62.1January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient
62.2who has been receiving an annuity or a benefit for at least 18 full months prior to the
62.3January 1 increase;
62.4(3) for January 1, 2013, and each successive January 1 until funding stability is
62.5restored, for each annuitant or benefit recipient who has been receiving an annuity or
62.6a benefit for at least six full months, an annual postretirement increase of 1/12 of two
62.7percent for each month the person has been receiving an annuity or benefit must be
62.8applied, effective January 1, following the year in which the person has been retired
62.9for less than 12 months;
62.10(4) for each January 1 following the restoration of funding stability, a postretirement
62.11increase of 2.5 percent must be applied each year, effective January 1, to the monthly
62.12annuity or benefit amount of each annuitant or benefit recipient who has been receiving an
62.13annuity or a benefit for at least 18 full months prior to the January 1 increase; and
62.14(5) for each January 1 following the restoration of funding stability, for each
62.15annuitant or benefit recipient who has been receiving an annuity or a benefit for at least
62.16six full months, an annual postretirement increase of 1/12 of 2.5 percent for each month
62.17the person has been receiving an annuity or benefit must be applied, effective January 1,
62.18following the year in which the person has been retired for less than 12 months.
62.19(b) Funding stability is restored when the market value of assets of the Teachers
62.20Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities of
62.21the Teachers Retirement Association in the most recent prior actuarial valuation prepared
62.22under section 356.215 and the standards for actuarial work by the approved actuary
62.23retained by the Teachers Retirement Association under section 356.214.
62.24(c) An increase in annuity or benefit payments under this section must be made
62.25automatically unless written notice is filed by the annuitant or benefit recipient with the
62.26executive director of the Teachers Retirement Association requesting that the increase
62.27not be made.
62.28(d) The retirement annuity payable to a person who retires before becoming eligible
62.29for Social Security benefits and who has elected the optional payment as provided in
62.30section 354.35 must be treated as the sum of a period-certain retirement annuity and a life
62.31retirement annuity for the purposes of any postretirement adjustment. The period-certain
62.32retirement annuity plus the life retirement annuity must be the annuity amount payable
62.33until age 62, 65, or normal retirement age, as selected by the member at retirement, for an
62.34annuity amount payable under section 354.35. A postretirement adjustment granted on
62.35the period-certain retirement annuity must terminate when the period-certain retirement
62.36annuity terminates.
63.1EFFECTIVE DATE.This section is effective the day following final enactment.

63.2    Sec. 77. Minnesota Statutes 2008, section 356.47, subdivision 3, is amended to read:
63.3    Subd. 3. Payment. (a) Beginning one year after the reemployment withholding
63.4period ends relating to the reemployment that gave rise to the limitation, and the filing of a
63.5written application, the retired member is entitled to the payment, in a lump sum, of the
63.6value of the person's amount under subdivision 2, plus annual compound interest at. For
63.7the general state employees retirement plan, for the correctional state employees retirement
63.8plan, the general employees retirement plan of the Public Employees Retirement
63.9Association, the public employees police and fire retirement plan, the local government
63.10correctional employees retirement plan, and the teachers retirement plan, the annual
63.11interest rate is six percent from the date on which the amount was deducted from the
63.12retirement annuity to the date of payment or until January 1, 2011, whichever is earlier, and
63.13no interest after January 1, 2011. For the Duluth Teachers Retirement Fund Association,
63.14the annual interest is six percent from the date on which the amount was deducted from the
63.15retirement annuity to the date of payment or until June 30, 2010, whichever is earlier, and
63.16no interest after June 30, 2010. For the St. Paul Teachers Retirement Fund Association,
63.17the annual interest is the compound annual rate of six percent from the date that the
63.18amount was deducted from the retirement annuity to the date of payment.
63.19    (b) The written application must be on a form prescribed by the chief administrative
63.20officer of the applicable retirement plan.
63.21    (c) If the retired member dies before the payment provided for in paragraph (a) is
63.22made, the amount is payable, upon written application, to the deceased person's surviving
63.23spouse, or if none, to the deceased person's designated beneficiary, or if none, to the
63.24deceased person's estate.
63.25    (d) In lieu of the direct payment of the person's amount under subdivision 2, on
63.26or after the payment date under paragraph (a), if the federal Internal Revenue Code so
63.27permits, the retired member may elect to have all or any portion of the payment amount
63.28under this section paid in the form of a direct rollover to an eligible retirement plan as
63.29defined in section 402(c) of the federal Internal Revenue Code that is specified by the
63.30retired member. If the retired member dies with a balance remaining payable under this
63.31section, the surviving spouse of the retired member, or if none, the deceased person's
63.32designated beneficiary, or if none, the administrator of the deceased person's estate may
63.33elect a direct rollover under this paragraph.
63.34EFFECTIVE DATE.This section is effective the day following final enactment.

64.1    Sec. 78. Minnesota Statutes 2009 Supplement, section 423A.02, subdivision 3, is
64.2amended to read:
64.3    Subd. 3. Reallocation of amortization or supplementary amortization state
64.4aid. (a) Seventy percent of the difference between $5,720,000 and the current year
64.5amortization aid and supplemental amortization aid distributed under subdivisions 1
64.6and 1a that is not distributed for any reason to a municipality for use by a local police
64.7or salaried fire relief association must be distributed by the commissioner of revenue
64.8according to this paragraph. The commissioner shall distribute 50 percent of the amounts
64.9derived under this paragraph to the Teachers Retirement Association, ten percent to the
64.10Duluth Teachers Retirement Fund Association, and 40 percent to the St. Paul Teachers
64.11Retirement Fund Association to fund the unfunded actuarial accrued liabilities of the
64.12respective funds. These payments shall be made on or before June 30 each fiscal year. If
64.13the St. Paul Teachers Retirement Fund Association becomes fully funded, its eligibility
64.14for this aid ceases. Amounts remaining in the undistributed balance account at the end of
64.15the biennium if aid eligibility ceases cancel to the general fund.
64.16    (b) In order to receive amortization and supplementary amortization aid under
64.17paragraph (a), Independent School District No. 625, St. Paul, must make contributions
64.18to the St. Paul Teachers Retirement Fund Association in accordance with the following
64.19schedule:

64.20		Fiscal Year		Amount
64.21		1996	$	0
64.22		1997	$	0
64.23		1998	$	200,000
64.24		1999	$	400,000
64.25		2000	$	600,000
64.26		2001 and thereafter	$	800,000

64.27    (c) Special School District No. 1, Minneapolis, and the city of Minneapolis must
64.28each make contributions to the Teachers Retirement Association in accordance with the
64.29following schedule:

64.30 64.31		Fiscal Year	City amount			School district amount
64.32		1996	$	0		$	0
64.33		1997	$	0		$	0
64.34		1998	$	250,000		$	250,000
64.35		1999	$	400,000		$	400,000
64.36		2000	$	550,000		$	550,000
64.37		2001	$	700,000		$	700,000
65.1		2002	$	850,000		$	850,000
65.2		2003 and thereafter	$	1,000,000		$	1,000,000

65.3    (d) Money contributed under paragraph (a) and either paragraph (b) or (c), as
65.4applicable, must be credited to a separate account in the applicable teachers retirement
65.5fund and may not be used in determining any benefit increases. The separate account
65.6terminates for a fund when the aid payments to the fund under paragraph (a) cease.
65.7    (e) (d) Thirty percent of the difference between $5,720,000 and the current year
65.8amortization aid and supplemental amortization aid under subdivisions 1 and 1a that is not
65.9distributed for any reason to a municipality for use by a local police or salaried firefighter
65.10relief association must be distributed under section 69.021, subdivision 7, paragraph (d),
65.11as additional funding to support a minimum fire state aid amount for volunteer firefighter
65.12relief associations.
65.13EFFECTIVE DATE.This section is effective the day following final enactment.

65.14    Sec. 79. LOCAL RETIREMENT FUND INVESTMENT AUTHORITIES
65.15STUDY.
65.16A study group consisting of representatives from pension plans subject to Minnesota
65.17Statutes, section 356A.06, subdivision 6 or 7, shall be convened by the State Auditor to
65.18study investment-related provisions, authorities, and limitations under Minnesota Statutes,
65.19chapter 356A, and related sections of other chapters. Administrative support for the study
65.20group shall be provided by the State Auditor. The study group shall prepare a report to
65.21include an assessment of the effectiveness of current statutory prescriptions, options for
65.22change, and recommendations for consideration by the governor and the legislature during
65.23the 2011 legislative session. The report will be provided no later than January 15, 2011, to
65.24the executive director of the Legislative Commission on Pensions and Retirement, the
65.25chair and ranking minority caucus member of the Senate State and Local Government
65.26Operations and Oversight Committee, and the chair and ranking minority caucus member
65.27of the House State and Local Government Operations Reform, Technology and Elections
65.28Committee.
65.29EFFECTIVE DATE.This section is effective the day following final enactment.

65.30    Sec. 80. BYLAW AUTHORIZATION.
65.31Consistent with the requirements of Minnesota Statutes, section 354A.12,
65.32subdivision 4, the board of the Duluth Teachers Retirement Fund Association is authorized
66.1to revise the bylaws or articles of incorporation so that the requirements of this act apply
66.2to the old law coordinated program.
66.3EFFECTIVE DATE.This section is effective the day following final enactment.

66.4    Sec. 81. REPEALER.
66.5Minnesota Statutes 2008, section 354A.27, subdivision 1, is repealed.
66.6EFFECTIVE DATE.This section is effective July 1, 2010."
66.7Delete the title and insert:
66.9relating to retirement; Minnesota State Retirement System, Public Employees
66.10Retirement Association; Teachers Retirement Association; first class city
66.11teacher retirement fund associations; increasing certain contribution rates;
66.12suspending certain post-retirement adjustments; reducing certain postretirement
66.13adjustment increase rates; reducing interest rates on refunds; reducing deferred
66.14annuity augmentation rates; eliminating interest on reemployed annuitant
66.15earnings limitation deferred accounts; increasing certain vesting requirements;
66.16increasing certain early retirement reduction rates; reducing certain benefit
66.17accrual rates; extending certain amortization periods; requiring a retirement fund
66.18investment authority study; authorizing certain bylaw amendments;amending
66.19Minnesota Statutes 2008, sections 3A.02, subdivision 4; 352.113, subdivision
66.201; 352.115, subdivision 1; 352.12, subdivision 2; 352.22, subdivisions 2, 3;
66.21352.72, subdivisions 1, 2; 352.93, subdivisions 1, 2a, 3a; 352.931, subdivision
66.221; 352B.02, as amended; 352B.08, subdivisions 1, 2a; 352B.11, subdivision
66.232b; 352B.30, subdivisions 1, 2; 352F.07; 353.01, by adding a subdivision;
66.24353.27, subdivision 3b; 353.29, subdivision 1; 353.30, subdivision 1c; 353.32,
66.25subdivisions 1, 1a; 353.34, subdivisions 1, 2, 3; 353.651, subdivisions 1, 4;
66.26353.657, subdivisions 1, 2a; 353.71, subdivisions 1, 2; 353E.04, subdivisions
66.271, 4; 353E.07, subdivisions 1, 2; 353F.03; 354.42, subdivision 3, by adding
66.28subdivisions; 354A.12, subdivisions 1, 3c; 354A.27, subdivisions 5, 6, by
66.29adding a subdivision; 354A.31, subdivision 1; 354A.35, subdivision 1; 354A.37,
66.30subdivisions 2, 3, 4; 356.215, subdivision 8; 356.30, subdivision 1; 356.302,
66.31subdivisions 3, 4, 5; 356.303, subdivision 2; 356.315, subdivision 5; 356.47,
66.32subdivision 3; Minnesota Statutes 2009 Supplement, sections 352.75, subdivision
66.334; 352.95, subdivision 2; 353.27, subdivisions 2, 3; 353.33, subdivision 1;
66.34353.65, subdivisions 2, 3; 354.42, subdivision 2; 354.47, subdivision 1; 354.49,
66.35subdivision 2; 354.55, subdivision 11; 354A.12, subdivision 2a; 356.215,
66.36subdivision 11; 356.415, subdivision 1, by adding a subdivision; 423A.02,
66.37subdivision 3; repealing Minnesota Statutes 2008, section 354A.27, subdivision
66.381."