1.12014 OMNIBUS RETIREMENT BILL
1.2.................... moves to amend S.F. No. 1803; H.F. No. 1951, as follows:
1.3Delete everything after the enacting clause and insert:


1.6    Section 1. Minnesota Statutes 2013 Supplement, section 352.01, subdivision 2a,
1.7is amended to read:
1.8    Subd. 2a. Included employees. (a) "State employee" includes:
1.9    (1) employees of the Minnesota Historical Society;
1.10    (2) employees of the State Horticultural Society;
1.11    (3) employees of the Minnesota Crop Improvement Association;
1.12    (4) employees of the adjutant general whose salaries are paid from federal funds and
1.13who are not covered by any federal civilian employees retirement system;
1.14    (5) employees of the Minnesota State Colleges and Universities who are employed
1.15under the university or college activities program;
1.16    (6) currently contributing employees covered by the system who are temporarily
1.17employed by the legislature during a legislative session or any currently contributing
1.18employee employed for any special service as defined in subdivision 2b, clause (8);
1.19    (7) employees of the legislature who are appointed without a limit on the duration
1.20of their employment and persons employed or designated by the legislature or by a
1.21legislative committee or commission or other competent authority to conduct a special
1.22inquiry, investigation, examination, or installation;
1.23    (8) trainees who are employed on a full-time established training program
1.24performing the duties of the classified position for which they will be eligible to receive
1.25immediate appointment at the completion of the training period;
1.26    (9) employees of the Minnesota Safety Council;
1.27    (10) any employees who are on authorized leave of absence from the Transit
1.28Operating Division of the former Metropolitan Transit Commission and who are employed
1.29by the labor organization which is the exclusive bargaining agent representing employees
1.30of the Transit Operating Division;
1.31    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
1.32Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito
1.33Control Commission unless excluded under subdivision 2b or are covered by another
1.34public pension fund or plan under section 473.415, subdivision 3;
1.35    (12) judges of the Tax Court;
2.1    (13) personnel who were employed on June 30, 1992, by the University of
2.2Minnesota in the management, operation, or maintenance of its heating plant facilities,
2.3whose employment transfers to an employer assuming operation of the heating plant
2.4facilities, so long as the person is employed at the University of Minnesota heating plant
2.5by that employer or by its successor organization;
2.6    (14) personnel who are employed as seasonal employees in the classified or
2.7unclassified service;
2.8    (15) persons who are employed by the Department of Commerce as a peace officer
2.9in the Commerce Fraud Bureau under section 45.0135 who have attained the mandatory
2.10retirement age specified in section 43A.34, subdivision 4;
2.11    (16) employees of the University of Minnesota unless excluded under subdivision
2.122b, clause (3);
2.13    (17) employees of the Middle Management Association whose employment began
2.14after July 1, 2007, and to whom section 352.029 does not apply;
2.15    (18) employees of the Minnesota Government Engineers Council to whom section
2.16352.029 does not apply;
2.17(19) employees of the Minnesota Sports Facilities Authority; and
2.18(20) employees of the Minnesota Association of Professional Employees.;
2.19(21) employees of the Minnesota State Retirement System;
2.20(22) employees of the State Agricultural Society;
2.21(23) employees of the Gillette Children's Hospital Board who were employed in the
2.22state unclassified service at the former Gillette Children's Hospital on March 28, 1974; and
2.23(24) if approved for coverage by the Board of Directors of Conservation Corps
2.24Minnesota, employees of Conservation Corps Minnesota so employed on June 30, 2003.
2.25    (b) Employees specified in paragraph (a), clause (13), are included employees under
2.26paragraph (a) if employer and employee contributions are made in a timely manner in the
2.27amounts required by section 352.04. Employee contributions must be deducted from
2.28salary. Employer contributions are the sole obligation of the employer assuming operation
2.29of the University of Minnesota heating plant facilities or any successor organizations to
2.30that employer.
2.31EFFECTIVE DATE.This section is effective July 1, 2014.

2.32    Sec. 2. Minnesota Statutes 2012, section 352.01, subdivision 2b, is amended to read:
2.33    Subd. 2b. Excluded employees. "State employee" does not include:
2.34    (1) persons who are:
3.1    (i) students who are employed by the University of Minnesota, or within the
3.2Minnesota State Colleges and Universities system, unless approved for coverage by
3.3the Board of Regents of the University of Minnesota or the Board of Trustees of the
3.4Minnesota State Colleges and Universities, whichever is applicable applies;
3.5(ii) employed as interns for a period not to exceed six months unless included under
3.6subdivision 2a, paragraph (a), clause (8);
3.7(iii) employed as trainee employees unless included under subdivision 2a, paragraph
3.8(a), clause (8); or
3.9(iv) employed in the student worker classification as designated by Minnesota
3.10Management and Budget;
3.11    (2) employees who are:
3.12    (i) eligible for membership in the state Teachers Retirement Association, except
3.13employees unless the person is an employee of the Department of Education who have
3.14chosen or may choose elected to be covered by the general state employees retirement plan
3.15of the Minnesota State Retirement System instead of the Teachers Retirement Association;
3.16    (ii) employees of the state who, in any year, were credited with 12 months of
3.17allowable service as a public school teacher and, as such, are members of a retirement plan
3.18governed by chapter 354 or 354A unless the employment is incidental employment as a
3.19state employee that is not covered by a retirement plan governed by chapter 354 or 354A;
3.20    (iii) employees of the state who are employed by the Board of Trustees of the
3.21Minnesota State Colleges and Universities in an unclassified position that is listed in
3.22section 43A.08, subdivision 1, clause (9);
3.23    (iv) persons employed by the Board of Trustees of the Minnesota State Colleges and
3.24Universities who elected retirement coverage other than by the general state employees
3.25retirement plan of the Minnesota State Retirement System under Minnesota Statutes
3.261994, section 136C.75;
3.27    (v) officers or enlisted personnel in the National Guard or in the naval militia who
3.28are assigned to permanent peacetime duty and who are or are required to be members of a
3.29federal retirement system under federal law;
3.30    (vi) persons employed by the Department of Military Affairs as full-time firefighters
3.31and who, as such, are members of the public employees police and fire retirement plan;
3.32    (vii) members of the State Patrol retirement plan under section 352B.011,
3.33subdivision 10;
3.34    (viii) off-duty police officers while employed by the Metropolitan Council and
3.35persons employed as full-time police officers by the Metropolitan Council and who, as
3.36such, are members of the public employees police and fire retirement plan; and
4.1    (ix) employees of the state who have elected to transfer account balances derived
4.2from state service to the unclassified state employees retirement program under section
4.3352D.02, subdivision 1d;
4.4    (3) employees of the University of Minnesota who are excluded from coverage by
4.5action of the Board of Regents;
4.6    (4) officers and enlisted personnel in the National Guard and the naval militia who
4.7are assigned to permanent peacetime duty and who under federal law are or are required to
4.8be members of a federal retirement system;
4.9    (5) (4) election officers judges and persons who are employed solely to administer
4.10elections;
4.11    (6) (5) persons who are:
4.12    (i) engaged in public work for the state but who are employed by contractors when the
4.13performance of the contract is authorized by the legislature or other competent authority;
4.14    (7) officers and employees of the senate, or of the house of representatives, or of a
4.15legislative committee or commission who are temporarily employed;
4.16(ii) employed to perform professional services where the service is incidental to the
4.17person's regular professional duties and where compensation is paid on a per diem basis; or
4.18(iii) compensated on a fee payment basis or as an independent contractor;
4.19(6) persons who are employed by:
4.20(i) the house of representatives, the senate, or a legislative commission or agency
4.21under the jurisdiction of the Legislative Coordinating Commission on a temporary basis;
4.22(ii) the Minnesota State Agricultural Society or the Minnesota State Fair as a
4.23temporary employee on or after July 1 for a period ending on or before October 15 of that
4.24calendar year or as an employee at any time for a special event held on the fairgrounds;
4.25(iii) the executive branch as a temporary employee in the classified service or as a
4.26temporary employee in the unclassified service if appointed for a definite period not to
4.27exceed six months, and if employment is less than six months, then in any 12-month period;
4.28(iv) the adjutant general if employed on an unlimited intermittent or temporary
4.29basis in the classified service or in the unclassified service for the support of Army or Air
4.30National Guard training facilities;
4.31(v) a state or federal program for training or rehabilitation as a temporary employee
4.32if employed for a limited period from an area of economic distress and if other than a
4.33skilled or supervisory personnel position or other than a position that has civil service
4.34status covered by the retirement system; and
5.1(vi) the Metropolitan Council or a statutory board of the Metropolitan Council where
5.2the members of the board are appointed by the Metropolitan Council as a temporary
5.3employee if the appointment does not exceed six months;
5.4    (8) (7) receivers, jurors, notaries public, and court employees who are not in the
5.5judicial branch as defined in section 43A.02, subdivision 25, except referees and adjusters
5.6employed by the Department of Labor and Industry;
5.7    (9) (8) patient and inmate help who perform services in state charitable, penal, and
5.8correctional institutions, including the a Minnesota Veterans Home;
5.9    (10) persons who are employed for professional services where the service is
5.10incidental to their regular professional duties and whose compensation is paid on a per
5.11diem basis;
5.12    (11) (9) employees of the Sibley House Association;
5.13(10) persons who are:
5.14    (12) the (i) members of any state board or commission who serve the state
5.15intermittently and are paid on a per diem basis;, the secretary, secretary-treasurer, and
5.16treasurer of those boards if their compensation is $5,000 or less per year, or, if they are
5.17legally prohibited from serving more than three years;, and the board of managers of the
5.18State Agricultural Society and its treasurer unless the treasurer is also its full-time secretary;
5.19    (13) state troopers and persons who are described in section 352B.011, subdivision
5.2010 , clauses (2) to (8);
5.21    (14) temporary employees of the Minnesota State Fair who are employed on or
5.22after July 1 for a period not to extend beyond October 15 of that year; and persons who
5.23are employed at any time by the state fair administration for special events held on the
5.24fairgrounds;
5.25(ii) examination monitors employed by a department, agency, commission, or board
5.26of the state to conduct examinations that are required by law; or
5.27(iii) appointees serving as a member of a fact-finding commission or an adjustment
5.28panel, an arbitrator, or a labor referee under chapter 179;
5.29    (15) (11) emergency employees who are in the classified service; except that,
5.30but if an emergency employee, within the same pay period, becomes a provisional or
5.31probationary employee on other than a temporary basis, the employee must be considered
5.32a "state employee" retroactively to the beginning of the pay period;
5.33    (16) temporary employees in the classified service, and temporary employees in the
5.34unclassified service who are appointed for a definite period of not more than six months
5.35and who are employed less than six months in any one-year period;
6.1    (17) interns who are hired for six months or less and trainee employees, except
6.2those listed in subdivision 2a, clause (8);
6.3    (18) persons whose compensation is paid on a fee basis or as an independent
6.4contractor;
6.5    (19) state employees who are employed by the Board of Trustees of the Minnesota
6.6State Colleges and Universities in unclassified positions enumerated in section 43A.08,
6.7subdivision 1 , clause (9);
6.8    (20) state employees who in any year have credit for 12 months service as teachers
6.9in the public schools of the state and as teachers are members of the Teachers Retirement
6.10Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for
6.11incidental employment as a state employee that is not covered by one of the teacher
6.12retirement associations or systems;
6.13    (21) employees of the adjutant general who are employed on an unlimited
6.14intermittent or temporary basis in the classified or unclassified service for the support of
6.15Army and Air National Guard training facilities;
6.16    (22) chaplains and nuns (12) persons who are members of a religious order who are
6.17excluded from coverage under the federal Old Age, Survivors, Disability, and Health
6.18Insurance Program for the performance of service as specified in United States Code, title
6.1942, section 410(a)(8)(A), as amended, if no irrevocable election of coverage has been
6.20made under section 3121(r) of the Internal Revenue Code of 1986, as amended through
6.21December 31, 1992;
6.22    (23) examination monitors who are employed by departments, agencies,
6.23commissions, and boards to conduct examinations required by law;
6.24    (24) persons who are appointed to serve as members of fact-finding commissions or
6.25adjustment panels, arbitrators, or labor referees under chapter 179;
6.26    (25) temporary employees who are employed for limited periods under any state or
6.27federal program for training or rehabilitation, including persons who are employed for
6.28limited periods from areas of economic distress, but not including skilled and supervisory
6.29personnel and persons having civil service status covered by the system;
6.30    (26) full-time students who are employed by the Minnesota Historical Society
6.31intermittently during part of the year and full-time during the summer months;
6.32    (27) temporary employees who are appointed for not more than six months, of
6.33the Metropolitan Council and of any of its statutory boards, if the board members are
6.34appointed by the Metropolitan Council;
6.35    (28) persons who are employed in positions designated by the Department of
6.36Management and Budget as student workers;
7.1    (29) (13) members of trades who are employed by the successor to the Metropolitan
7.2Waste Control Commission, who have trade union pension plan coverage under a
7.3collective bargaining agreement, and who are first employed after June 1, 1977;
7.4    (30) off-duty peace officers while employed by the Metropolitan Council;
7.5    (31) persons who are employed as full-time police officers by the Metropolitan
7.6Council and as police officers are members of the public employees police and fire fund;
7.7    (32) persons who are employed as full-time firefighters by the Department of Military
7.8Affairs and as firefighters are members of the public employees police and fire fund;
7.9    (33) (14) foreign citizens who are employed under a work permit of less than three
7.10years, or under an H-1b/JV H-1b visa or a J-1 visa that is initially valid for less than three
7.11years of employment, unless notice of a visa extension is supplied which allows them to
7.12work for three or more years as of the date that the extension is granted is supplied to the
7.13retirement plan, in which case they are the person is eligible for coverage from the date
7.14extended of the extension; and
7.15    (34) persons who are employed by the Board of Trustees of the Minnesota State
7.16Colleges and Universities and who elected to remain members of the Public Employees
7.17Retirement Association or of the MERF division of the Public Employees Retirement
7.18Association as the successor of the Minneapolis Employees Retirement Fund, whichever
7.19applies, under Minnesota Statutes 1994, section 136C.75; and
7.20(35) employees who have elected to transfer service to the unclassified program
7.21under section 352D.02, subdivision 1d.
7.22(15) reemployed annuitants of the general state employees retirement plan, the
7.23military affairs personnel retirement plan, the transportation department pilots retirement
7.24plan, the state fire marshal employees retirement plan, or the correctional state employees
7.25retirement plan during the course of that reemployment.
7.26EFFECTIVE DATE.This section is effective July 1, 2014.

7.27    Sec. 3. Minnesota Statutes 2013 Supplement, section 353.01, subdivision 2a, is
7.28amended to read:
7.29    Subd. 2a. Included employees; mandatory membership. (a) Public employees
7.30whose annual salary exceeds $425 in any month is stipulated in advance to exceed $5,100
7.31if the person is not a school district employee or $3,800 if the person is a school district
7.32employee and who are not specifically excluded under subdivision 2b or who have not
7.33been provided an option to participate under subdivision 2d, whether individually or by
7.34action of the governmental subdivision, must participate as members of the association
7.35with retirement coverage by the general employees retirement plan under this chapter,
8.1the public employees police and fire retirement plan under this chapter, or the local
8.2government correctional employees retirement plan under chapter 353E, whichever
8.3applies. Membership commences as a condition of their employment on the first day of
8.4their employment or on the first day that the eligibility criteria are met, whichever is later.
8.5Public employees include but are not limited to:
8.6(1) persons whose salary meets the threshold in this paragraph from employment in
8.7one or more positions within one governmental subdivision;
8.8(2) elected county sheriffs;
8.9(3) persons who are appointed, employed, or contracted to perform governmental
8.10functions that by law or local ordinance are required of a public officer, including, but
8.11not limited to:
8.12(i) town and city clerk or treasurer;
8.13(ii) county auditor, treasurer, or recorder;
8.14(iii) city manager as defined in section 353.028 who does not exercise the option
8.15provided under subdivision 2d; or
8.16(iv) emergency management director, as provided under section 12.25;
8.17(4) physicians under section 353D.01, subdivision 2, who do not elect public
8.18employees defined contribution plan coverage under section 353D.02, subdivision 2;
8.19(5) full-time employees of the Dakota County Agricultural Society;
8.20(6) employees of the Red Wing Port Authority who were first employed by the
8.21Red Wing Port Authority before May 1, 2011, and who are not excluded employees
8.22under subdivision 2b; and
8.23(7) employees of the Seaway Port Authority of Duluth who are not excluded
8.24employees under subdivision 2b.
8.25(8) employees of the Stevens County Housing and Redevelopment Authority who
8.26were first employed by the Stevens County Housing and Redevelopment Authority before
8.27May 1, 2014, and who are not excluded employees under subdivision 2b; and
8.28(9) employees of the Public Employees Retirement Association.
8.29    (b) A public employee or elected official who was a member of the association on
8.30June 30, 2002, based on employment that qualified for membership coverage by the public
8.31employees retirement plan or the public employees police and fire plan under this chapter,
8.32or the local government correctional employees retirement plan under chapter 353E as of
8.33June 30, 2002, retains that membership for the duration of the person's employment in that
8.34position or incumbency in elected office. Except as provided in subdivision 28, the person
8.35shall participate as a member until the employee or elected official terminates public
8.36employment under subdivision 11a or terminates membership under subdivision 11b.
9.1(c) If the annual salary of an included public employee is less than $425 is stipulated
9.2in advance to exceed $5,100 if the person is not a school district employee or $3,800 if the
9.3person is a school district employee in any subsequent month year, the member retains
9.4membership eligibility.
9.5(d) For the purpose of participation in the MERF division of the general employees
9.6retirement plan, public employees include employees who were members of the former
9.7Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as
9.8members of the MERF division of the association.
9.9EFFECTIVE DATE.This section is effective the day following final enactment.

9.10    Sec. 4. Minnesota Statutes 2013 Supplement, section 353.01, subdivision 2b, is
9.11amended to read:
9.12    Subd. 2b. Excluded employees. (a) The following public employees are not eligible
9.13to participate as members of the association with retirement coverage by the general
9.14employees retirement plan, the local government correctional employees retirement plan
9.15under chapter 353E, or the public employees police and fire retirement plan:
9.16    (1) persons whose annual salary from one governmental subdivision never exceeds
9.17 an amount, stipulated in writing in advance, of $5,100 if the person is not a school district
9.18employee or $3,800 if the person is a school district employee. If annual compensation
9.19from one governmental subdivision to an employee exceeds the stipulated amount in a
9.20calendar year or a school year, whichever applies, after being stipulated in advance not to
9.21exceed the applicable amount, the stipulation is no longer valid and contributions must
9.22be made on behalf of the employee under section 353.27, subdivision 12, from the first
9.23month in which the employee received salary exceeding $425 ina month;
9.24(2) public officers who are elected to a governing body, city mayors, or persons who
9.25are appointed to fill a vacancy in an elective office of a governing body, whose term of office
9.26commences on or after July 1, 2002, for the service to be rendered in that elective position;
9.27    (3) election officers or election judges and persons employed solely to administer
9.28elections;
9.29    (4) patient and inmate personnel who perform services for a governmental
9.30subdivision;
9.31    (5) except as otherwise specified in subdivision 12a, employees who are hired for
9.32 employed solely in a temporary position as defined under subdivision 12a, and employees
9.33who resign from a nontemporary position and accept a temporary position within 30 days
9.34of that resignation in the same governmental subdivision;
10.1    (6) employees who are employed by reason of work emergency caused by fire,
10.2flood, storm, or similar disaster, but if the person becomes a probationary or provisional
10.3employee within the same pay period, other than on a temporary basis, the person is a
10.4"public employee" retroactively to the beginning of the pay period;
10.5    (7) employees who by virtue of their employment in one governmental subdivision
10.6are required by law to be a member of and to contribute to any of the plans or funds
10.7administered by the Minnesota State Retirement System, the Teachers Retirement
10.8Association, the Duluth Teachers Retirement Fund Association, and or the St. Paul
10.9Teachers Retirement Fund Association., but this clause exclusion must not be construed
10.10to prevent a person from being a member of and contributing to the Public Employees
10.11Retirement Association and also belonging to and contributing to another public pension
10.12plan or fund for other service occurring during the same period of time., and a person who
10.13meets the definition of "public employee" in subdivision 2 by virtue of other service
10.14occurring during the same period of time becomes a member of the association unless
10.15contributions are made to another public retirement fund plan on the salary based on the
10.16other service or to the Teachers Retirement Association by a teacher as defined in section
10.17354.05, subdivision 2 ;
10.18    (8) persons who are members of a religious order and are excluded from coverage
10.19under the federal Old Age, Survivors, Disability, and Health Insurance Program for the
10.20performance of service as specified in United States Code, title 42, section 410(a)(8)(A),
10.21as amended through January 1, 1987, if no irrevocable election of coverage has been made
10.22under section 3121(r) of the Internal Revenue Code of 1954, as amended;
10.23    (9) employees of persons who are:
10.24    (i) employed by a governmental subdivision who have not reached the age of 23
10.25and who are enrolled on a full-time basis to attend or are attending classes on a full-time
10.26basis at an accredited school, college, or university in an undergraduate, graduate, or
10.27professional-technical program, or at a public or charter high school;
10.28    (10) (ii) employed as resident physicians, medical interns, and pharmacist residents
10.29and, or pharmacist interns who and are serving in a degree or residency program in a
10.30public hospitals hospital or clinics in a public clinic; or
10.31    (11) (iii) students who are serving for up a period not to exceed five years in an
10.32internship or a residency program that is sponsored by a governmental subdivision,
10.33including an accredited educational institution;
10.34    (12) (10) persons who hold a part-time adult supplementary technical college license
10.35who render part-time teaching service in a technical college;
11.1    (13) (11) except for employees of Hennepin County or employees of Hennepin
11.2Healthcare System, Inc., foreign citizens who are employed by a governmental subdivision
11.3under a work permit, or under an H-1b visa initially issued or extended for a combined
11.4period of less than three years of employment. but upon extension of the employment
11.5of the visa beyond the three-year period, the foreign citizens citizen must be reported
11.6for membership beginning on the first of the month thereafter provided following the
11.7extension if the monthly earnings threshold as provided under subdivision 2a is met;
11.8    (14) (12) public hospital employees who elected not to participate as members
11.9of the association before 1972 and who did not elect to participate from July 1, 1988,
11.10to October 1, 1988;
11.11    (15) (13) except as provided in section 353.86, volunteer ambulance service
11.12personnel, as defined in subdivision 35, but persons who serve as volunteer ambulance
11.13service personnel may still qualify as public employees under subdivision 2 and may
11.14be members of the Public Employees Retirement Association and participants in the
11.15general employees retirement plan or the public employees police and fire plan, whichever
11.16applies, on the basis of compensation received from public employment service other than
11.17service as volunteer ambulance service personnel;
11.18    (16) (14) except as provided in section 353.87, volunteer firefighters, as defined in
11.19subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties,
11.20but a person who is a volunteer firefighter may still qualify as a public employee under
11.21subdivision 2 and may be a member of the Public Employees Retirement Association and
11.22a participant in the general employees retirement plan or the public employees police
11.23and fire plan, whichever applies, on the basis of compensation received from public
11.24employment activities other than those as a volunteer firefighter;
11.25    (17) (15) pipefitters and associated trades personnel employed by Independent
11.26School District No. 625, St. Paul, with coverage under a collective bargaining agreement
11.27by the pipefitters local 455 pension plan who were either first employed after May 1,
11.281997, or, if first employed before May 2, 1997, elected to be excluded under Laws 1997,
11.29chapter 241, article 2, section 12;
11.30    (18) (16) electrical workers, plumbers, carpenters, and associated trades personnel
11.31who are employed by Independent School District No. 625, St. Paul, or the city of St.
11.32Paul, who have retirement coverage under a collective bargaining agreement by the
11.33Electrical Workers Local 110 pension plan, the United Association Plumbers Local 34
11.34pension plan, or the pension plan applicable to Carpenters Local 87 322 who were either
11.35first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be
11.36excluded under Laws 2000, chapter 461, article 7, section 5;
12.1    (19) (17) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
12.2painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul
12.3or Independent School District No. 625, St. Paul, with coverage under a collective
12.4bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan,
12.5the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324
12.6pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities
12.7Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if
12.8first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special
12.9Session chapter 10, article 10, section 6;
12.10    (20) (18) plumbers who are employed by the Metropolitan Airports Commission,
12.11with coverage under a collective bargaining agreement by the Plumbers Local 34 pension
12.12plan, who either were first employed after May 1, 2001, or if first employed before May 2,
12.132001, elected to be excluded under Laws 2001, First Special Session chapter 10, article
12.1410, section 6;
12.15    (21) (19) employees who are hired after June 30, 2002, solely to fill seasonal positions
12.16under subdivision 12b which are limited in duration by the employer to 185 consecutive
12.17calendar days or less in each year of employment with the governmental subdivision;
12.18    (22) (20) persons who are provided supported employment or work-study positions
12.19by a governmental subdivision and who participate in an employment or industries
12.20program maintained for the benefit of these persons where the governmental subdivision
12.21limits the position's duration to up to five years, including persons participating in a
12.22federal or state subsidized on-the-job training, work experience, senior citizen, youth, or
12.23unemployment relief program where the training or work experience is not provided as a
12.24part of, or for, future permanent public employment;
12.25    (23) (21) independent contractors and the employees of independent contractors;
12.26    (24) (22) reemployed annuitants of the association during the course of that
12.27reemployment; and
12.28(25) (23) persons appointed to serve on a board or commission of a governmental
12.29subdivision or an instrumentality thereof.; and
12.30(24) persons employed as full-time fixed-route bus drivers by the St. Cloud
12.31Metropolitan Transit Commission who are members of the International Brotherhood
12.32of Teamsters Local 638 and who are, by virtue of that employment, members of the
12.33International Brotherhood of Teamsters Central States pension plan.
12.34(b) Any person performing the duties of a public officer in a position defined in
12.35subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
12.36employee of an independent contractor.
13.1EFFECTIVE DATE.Paragraph (a), clause (24), is effective retroactively from
13.2August 1, 1986. The balance of this section is effective July 1, 2014.

13.3    Sec. 5. Minnesota Statutes 2012, section 353.27, is amended by adding a subdivision
13.4to read:
13.5    Subd. 10a. Written disclosure of membership exclusion determination. If the
13.6determination by the employer under section 353.01, subdivision 2a, paragraph (a), is to
13.7exclude a public employee from membership, the governmental subdivision shall provide
13.8the employee with a written notice of the exclusion on a form prescribed by the executive
13.9director. The notice must include the statutory basis for the exclusion and information
13.10about the employee's right to appeal the determination to the association under section
13.11356.96. The employer must provide the exclusion notice to the employee within two
13.12weeks of the date of the determination and shall retain a copy in the person's personnel file.
13.13EFFECTIVE DATE.This section is effective the day following final enactment.

13.14    Sec. 6. Minnesota Statutes 2012, section 354.05, subdivision 2, is amended to read:
13.15    Subd. 2. Teacher. (a) "Teacher" means:
13.16(1) a person who renders service as a teacher, supervisor, principal, superintendent,
13.17librarian, nurse, counselor, social worker, therapist, or psychologist in a public school of
13.18the state located outside of the corporate limits of the city of Duluth or the city of St. Paul
13.19 other than in Independent School District No. 625 or in Independent School District No.
13.20709, or in any charter school, irrespective of the location of the school, or in any charitable,
13.21penal, or correctional institutions of a governmental subdivision, or who is engaged in
13.22educational administration in connection with the state public school system, but excluding
13.23the University of Minnesota, whether the position be a public office or an employment, and
13.24not including the members or officers of any general governing or managing board or body;
13.25(2) an employee of the Teachers Retirement Association;
13.26(3) a person who renders teaching service on a part-time basis and who also renders
13.27other services for a single employing unit. A person whose where the teaching service
13.28comprises at least 50 percent of the combined employment salary is a member of the
13.29association for all services with the single employing unit. If the person's teaching service
13.30comprises or, if less than 50 percent of the combined employment salary, the executive
13.31director must determine whether determines all or none of the combined service is covered
13.32by the association; or
14.1(4) a person who is not covered by the plans established under chapter 352D, 354A,
14.2or 354B and who is employed by the Board of Trustees of the Minnesota State Colleges
14.3and Universities system in an unclassified position as:
14.4(i) a president, vice-president, or dean;
14.5(ii) a manager or a professional in an academic or an academic support program
14.6other than specified in item (i);
14.7(iii) an administrative or a service support faculty position; or
14.8(iv) a teacher or a research assistant.
14.9(b) "Teacher" does not mean:
14.10(1) a person who works for a school or institution as an independent contractor as
14.11defined by the Internal Revenue Service;
14.12(2) a person who renders part-time teaching service or who is a customized trainer
14.13as defined by the Minnesota State Colleges and Universities system if (i) the service is
14.14incidental to the regular nonteaching occupation of the person; and (ii) the employer
14.15stipulates annually in advance that the part-time teaching service or customized training
14.16service will not exceed 300 hours in a fiscal year and retains the stipulation in its records;
14.17and (iii) the part-time teaching service or customized training service actually does not
14.18exceed 300 hours in a fiscal year; or
14.19(3) a person exempt from licensure under section 122A.30.;
14.20(4) annuitants of the teachers retirement plan who are employed after retirement by
14.21an employing unit that participates in the teachers retirement plan during the course of
14.22that reemployment;
14.23(5) a person who is employed by the University of Minnesota;
14.24(6) a member or an officer of any general governing or managing board or body of
14.25an employing unit that participates in the teachers retirement plan; or
14.26(7) a person employed by Independent School District No. 625 or Independent
14.27School District No. 709 as a teacher as defined in section 354A.011, subdivision 27.
14.28EFFECTIVE DATE.This section is effective July 1, 2014.

14.29    Sec. 7. Minnesota Statutes 2012, section 354A.011, subdivision 27, is amended to read:
14.30    Subd. 27. Teacher. (a) "Teacher" means any person who renders service for a public
14.31school district, other than a charter school, located in the corporate limits of Duluth or
14.32St. Paul, as any of the following:
14.33(1) a full-time employee in a position for which a valid license from the state
14.34Department of Education is required;
15.1(2) an employee of the teachers retirement fund association located in the city of
15.2the first class;
15.3(3) a part-time employee in a position for which a valid license from the state
15.4Department of Education is required; or
15.5(4) a part-time employee in a position for which a valid license from the state
15.6Department of Education is required who also renders other nonteaching services for the
15.7school district, unless the board of trustees of the teachers retirement fund association
15.8determines that the combined employment is on the whole so substantially dissimilar to
15.9teaching service that the service may not be covered by the association.
15.10(b) The term does not mean any person who renders service in the school district
15.11as any of the following:
15.12(1) an independent contractor or the employee of an independent contractor;
15.13(2) an employee who is a full-time teacher covered by the Teachers Retirement
15.14Association or by another teachers retirement fund association established pursuant to this
15.15chapter or chapter 354;
15.16(3) an employee who is exempt from licensure pursuant to section 122A.30;
15.17(4) an employee who is a teacher in a technical college located in a city of the first
15.18class unless the person elects coverage by the applicable first class city teacher retirement
15.19fund association under section 354B.21, subdivision 2;
15.20(5) a teacher employed by a charter school, irrespective of the location of the
15.21school; or
15.22(6) an employee who is a part-time teacher in a technical college in a city of the first
15.23class and who has elected coverage by the applicable first class city teacher retirement
15.24fund association under section 354B.21, subdivision 2, but (i) the teaching service is
15.25incidental to the regular nonteaching occupation of the person; (ii) the applicable technical
15.26college stipulates annually in advance that the part-time teaching service will not exceed
15.27300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed 300
15.28hours in the fiscal year to which the certification applies.; or
15.29(7) a person who is receiving a retirement annuity from the Teachers Retirement
15.30Fund Association and is employed after retirement by the school district associated with
15.31the retirement fund association.
15.32EFFECTIVE DATE.This section is effective July 1, 2014.

15.33    Sec. 8. Minnesota Statutes 2012, section 356.24, subdivision 1, is amended to read:
15.34    Subdivision 1. Restriction; exceptions. It is unlawful for a school district or other
15.35governmental subdivision or state agency to levy taxes for or to contribute public funds to
16.1a supplemental pension or deferred compensation plan that is established, maintained,
16.2and operated in addition to a primary pension program for the benefit of the governmental
16.3subdivision employees other than:
16.4    (1) to a supplemental pension plan that was established, maintained, and operated
16.5before May 6, 1971;
16.6    (2) to a plan that provides solely for group health, hospital, disability, or death
16.7benefits;
16.8    (3) to the individual retirement account plan established by chapter 354B;
16.9    (4) to a plan that provides solely for severance pay under section 465.72 to a retiring
16.10or terminating employee;
16.11    (5) for employees other than personnel employed by the Board of Trustees of the
16.12Minnesota State Colleges and Universities and covered under the Higher Education
16.13Supplemental Retirement Plan under chapter 354C, but including city managers covered
16.14by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph
16.15(a), or by the defined contribution plan of the Public Employees Retirement Association
16.16under section 353.028, subdivision 3, paragraph (b), if the supplemental plan coverage is
16.17provided for in a personnel policy of the public employer or in the collective bargaining
16.18agreement between the public employer and the exclusive representative of public
16.19employees in an appropriate unit or in the individual employment contract between a city
16.20and a city manager, and if for each available investment all fees and historic rates of return
16.21for the prior one-, three-, five-, and ten-year periods, or since inception, are disclosed in an
16.22easily comprehended document not to exceed two pages, in an amount matching employee
16.23contributions on a dollar for dollar basis, but not to exceed an employer contribution of
16.24one-half of the available elective deferral permitted per year per employee, under the
16.25Internal Revenue Code:
16.26    (i) to the state of Minnesota deferred compensation plan under section 352.965;
16.27    (ii) in payment of the applicable portion of the contribution made to any investment
16.28eligible under section 403(b) of the Internal Revenue Code, if the employing unit has
16.29complied with any applicable pension plan provisions of the Internal Revenue Code with
16.30respect to the tax-sheltered annuity program during the preceding calendar year; or
16.31    (iii) any other deferred compensation plan offered by the employer under section
16.32457 of the Internal Revenue Code;
16.33    (6) for personnel employed by the Board of Trustees of the Minnesota State Colleges
16.34and Universities and not covered by clause (5), to the supplemental retirement plan under
16.35chapter 354C, if the supplemental plan coverage is provided for in a personnel policy
16.36or in the collective bargaining agreement of the public employer with the exclusive
17.1representative of the covered employees in an appropriate unit, in an amount matching
17.2employee contributions on a dollar for dollar basis, but not to exceed an employer
17.3contribution of $2,700 a year for each employee;
17.4    (7) to a supplemental plan or to a governmental trust to save for postretirement
17.5health care expenses qualified for tax-preferred treatment under the Internal Revenue
17.6Code, if the supplemental plan coverage is provided for in a personnel policy or in the
17.7collective bargaining agreement of a public employer with the exclusive representative of
17.8the covered employees in an appropriate unit;
17.9    (8) to the laborers national industrial pension fund or to a laborers local pension fund
17.10for the employees of a governmental subdivision who are covered by a collective bargaining
17.11agreement that provides for coverage by that fund and that sets forth a fund contribution
17.12rate, but not to exceed an employer contribution of $5,000 per year per employee;
17.13    (9) to the plumbers and pipefitters national pension fund or to a plumbers and
17.14pipefitters local pension fund for the employees of a governmental subdivision who are
17.15covered by a collective bargaining agreement that provides for coverage by that fund and
17.16that sets forth a fund contribution rate, but not to exceed an employer contribution of
17.17$5,000 per year per employee;
17.18    (10) to the international union of operating engineers pension fund for the employees
17.19of a governmental subdivision who are covered by a collective bargaining agreement that
17.20provides for coverage by that fund and that sets forth a fund contribution rate, but not to
17.21exceed an employer contribution of $5,000 per year per employee;
17.22    (11) to a supplemental plan organized and operated under the federal Internal
17.23Revenue Code, as amended, that is wholly and solely funded by the employee's
17.24accumulated sick leave, accumulated vacation leave, and accumulated severance pay;
17.25    (12) to the International Association of Machinists national pension fund for the
17.26employees of a governmental subdivision who are covered by a collective bargaining
17.27agreement that provides for coverage by that fund and that sets forth a fund contribution
17.28rate, but not to exceed an employer contribution of $5,000 per year per employee;
17.29    (13) for employees of United Hospital District, Blue Earth, to the state of Minnesota
17.30deferred compensation program, if the employee makes a contribution, in an amount that
17.31does not exceed the total percentage of covered salary under section 353.27, subdivisions
17.323 and 3a; or
17.33(14) to the alternative retirement plans established by the Hennepin County Medical
17.34Center under section 383B.914, subdivision 5.; or
17.35(15) to the International Brotherhood of Teamsters Central States pension plan for
17.36fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who
18.1are members of the International Brotherhood of Teamsters Local 638 by virtue of that
18.2employment.
18.3EFFECTIVE DATE.This section is effective retroactively from August 1, 1986.

18.4    Sec. 9. VALIDATION OF PAST RETIREMENT COVERAGE
18.5AND CONTRIBUTIONS FOR STEVENS COUNTY HOUSING AND
18.6REDEVELOPMENT AUTHORITY EMPLOYEES.
18.7(a) Retirement coverage by the general employees plan of the Public Employees
18.8Retirement Association, allowable service credit, and salary credit for employees of the
18.9Stevens County Housing and Redevelopment Authority who were so employed after
18.10November 7, 1984, and were first so employed before May 1, 2014, who had monthly
18.11salary in any month of at least $325 until June 30, 1988, and who had monthly salary in
18.12any month of at least $425 after June 30, 1988, who were not otherwise excluded under
18.13the applicable edition of Minnesota Statutes, section 353.01, subdivision 2b, and who had
18.14member deductions taken and transferred in a timely manner to the general employees
18.15retirement fund before the effective date of this section are hereby validated.
18.16(b) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the
18.17contrary, employee contributions deducted from employees of the Stevens County
18.18Housing and Redevelopment Authority described in paragraph (a) before the effective
18.19date of this section and associated employer contributions are valid assets of the general
18.20employees retirement fund and are not subject to refund or adjustment for erroneous
18.21receipt except as provided in Minnesota Statutes, section 353.32, subdivision 1 or 2;
18.22or 353.34, subdivisions 1 and 2.
18.23EFFECTIVE DATE.This section is effective the day following final enactment.


18.26    Section 1. Minnesota Statutes 2012, section 352.03, subdivision 1, is amended to read:
18.27    Subdivision 1. Membership of board; election; term. (a) The policy-making
18.28function of the system is vested in a board of 11 members known as the board of directors.
18.29This board shall consist of:
18.30(1) three members appointed by the governor, one of whom must be a constitutional
18.31officer or appointed state official and two of whom must be public members knowledgeable
18.32in pension matters,;
19.1(2) four state employees elected by state employees covered by the system active
19.2members and former members eligible for a deferred annuity from the general state
19.3employees retirement plan, excluding employees in categories specifically authorized
19.4to designate or elect a member by this subdivision, and deferred annuitants for whom
19.5a board member is designated;
19.6(3) one employee of the Metropolitan Council's transit operations or its successor
19.7agency designated by the executive committee of the labor organization that is the
19.8exclusive bargaining agent representing employees of the transit division,;
19.9(4) one employee who is a member of the State Patrol retirement fund plan elected
19.10by active members of and former members eligible for a deferred annuity from that fund
19.11at a time and in a manner fixed by the board, plan;
19.12(5) one employee covered by who is a member of the correctional state employees
19.13retirement plan established under this chapter elected by employees covered by active
19.14members and former members eligible for a deferred annuity from that plan,; and
19.15(6) one retired employee of a plan included in the system, elected by disabled and
19.16retired employees of all the plans administered by the system at a time and in a manner to
19.17be fixed determined by the board.
19.18(b) The terms of the four elected state employees under paragraph (a), clause (2),
19.19must be staggered, with two of the state employee members board positions elected
19.20each biennium, whose terms of office begin on the first Monday in May after their
19.21election, must be elected biennially. Elected members and the appointed member of the
19.22Metropolitan Council's transit operations hold office for a term of four years and until their
19.23successors are elected or appointed, and have qualified.
19.24(c) An employee or former employee of the system is not eligible for membership
19.25on the board of directors. A state employee on leave of absence is not eligible for election
19.26or reelection to membership on the board of directors.
19.27(d) The term of any board member who is on leave for more than six months
19.28automatically ends on expiration of the term of office.
19.29EFFECTIVE DATE.This section is effective the day following final enactment.

19.30    Sec. 2. Minnesota Statutes 2012, section 352.03, subdivision 1a, is amended to read:
19.31    Subd. 1a. Membership voting limitations. Active members and former members
19.32eligible for a deferred annuity from a plan under this chapter or chapter 352B are eligible
19.33to vote in board elections as further specified and restricted in this section. Retired
19.34members and disabilitants from a plan in the system may vote only for the retired member
19.35position under subdivision 1, paragraph (a), clause (6). If a former member eligible for a
20.1deferred annuity from a plan under this chapter or chapter 352B is a deferred annuitant
20.2from more than one plan covered by the system, that person is eligible to vote only in
20.3elections applicable for deferred annuitants from the plan in the system from which the
20.4person last received allowable service. If a person is an active member of a plan in the
20.5system and is a deferred annuitant or a retiree from another plan or plans in the system,
20.6the person is only eligible to vote in board elections applicable due to the active member
20.7plan membership. If a person is a deferred annuitant from a plan in the system and is also
20.8a retiree from another plan in the system, the person is only eligible to vote in elections
20.9applicable due to the retiree status.
20.10    Subd. 1b. Terms; compensation; removal; vacancies; public members. The
20.11membership terms, compensation, removal of members, and filling of vacancies for the
20.12public members on the board are as provided in section 15.0575.
20.13EFFECTIVE DATE.This section is effective the day following final enactment.


20.16    Section 1. Minnesota Statutes 2012, section 352.04, subdivision 2, is amended to read:
20.17    Subd. 2. Employee contributions. (a) The employee contribution to the fund must
20.18be equal to the following percent of salary:

20.19		before July 1, 2007	4.00
20.20		from July 1, 2007, to June 30, 2008	4.25
20.21		from July 1, 2008, to June 30, 2009	4.50
20.22		from July 1, 2009, to June 30, 2010	4.75
20.23 20.24		from July 1, 2010, and thereafterto June 30, 2014	5.00.
20.25		from July 1, 2014, and thereafter	5.50.

20.26(b) These contributions must be made by deduction from salary as provided in
20.27subdivision 4.
20.28EFFECTIVE DATE.This section is effective on the first day of the first full pay
20.29period beginning after July 1, 2014.

20.30    Sec. 2. Minnesota Statutes 2012, section 352.04, subdivision 3, is amended to read:
20.31    Subd. 3. Employer contributions. The employer contribution to the fund must be
20.32equal to the following percent of salary:

20.33		before July 1, 2007	4.00
20.34		from July 1, 2007, to June 30, 2008	4.25
21.1		from July 1, 2008, to June 30, 2009	4.50
21.2		from July 1, 2009, to June 30, 2010	4.75
21.3 21.4		from July 1, 2010, and thereafterto June 30, 2014	5.00.
21.5		from July 1, 2014, and thereafter	5.50.

21.6EFFECTIVE DATE.This section is effective on the first day of the first full pay
21.7period beginning after July 1, 2014.

21.8    Sec. 3. Minnesota Statutes 2012, section 352.92, subdivision 1, is amended to read:
21.9    Subdivision 1. Employee contributions. (a) Employee contributions of covered
21.10correctional employees must be in an amount equal to the following percent of salary:

21.11		before July 1, 2007	5.69
21.12		from July 1, 2007, to June 30, 2008	6.40
21.13		from July 1, 2008, to June 30, 2009	7.00
21.14		from July 1, 2009, to June 30, 2010	7.70
21.15 21.16		from July 1, 2010, and thereafterto June 30, 2014	8.60.
21.17		from July 1, 2014, and thereafter	9.10.

21.18(b) These contributions must be made by deduction from salary as provided in
21.19section 352.04, subdivision 4.
21.20EFFECTIVE DATE.This section is effective on the first day of the first full pay
21.21period beginning after July 1, 2014.

21.22    Sec. 4. Minnesota Statutes 2012, section 352.92, subdivision 2, is amended to read:
21.23    Subd. 2. Employer contributions. The employer shall contribute for covered
21.24correctional employees an amount equal to the following percent of salary:

21.25		before July 1, 2007	7.98
21.26		from July 1, 2007, to June 30, 2008	9.10
21.27		from July 1, 2008, to June 30, 2009	10.10
21.28		from July 1, 2009, to June 30, 2010	11.10
21.29 21.30		from July 1, 2010, and thereafterto June 30, 2014	12.10.
21.31		from July 1, 2014, and thereafter	12.85

21.32EFFECTIVE DATE.This section is effective on the first day of the first full pay
21.33period beginning after July 1, 2014.

21.34    Sec. 5. Minnesota Statutes 2012, section 353.27, subdivision 2, is amended to read:
22.1    Subd. 2. General employees retirement plan; employee contribution. (a) For
22.2a basic member of the general employees retirement plan of the Public Employees
22.3Retirement Association, the employee contribution is 9.10 percent of salary. For a
22.4coordinated member of the general employees retirement plan of the Public Employees
22.5Retirement Association, the employee contribution is the following percentage of salary
22.6plus any contribution rate adjustment under subdivision 3b:

22.7		Effective before January 1, 2011	6.00
22.8		Effective after December 31, 2010	6.25
22.9		Effective January 1, 2015	6.50

22.10(b) These contributions must be made by deduction from salary as defined in section
22.11353.01, subdivision 10 , in the manner provided in subdivision 4. If any portion of a
22.12member's salary is paid from other than public funds, the member's employee contribution
22.13must be based on the total salary received by the member from all sources.
22.14EFFECTIVE DATE.This section is effective the day following final enactment.

22.15    Sec. 6. Minnesota Statutes 2012, section 353.27, subdivision 3, is amended to read:
22.16    Subd. 3. General employees retirement plan; employer contribution. (a) For
22.17a basic member of the general employees retirement plan of the Public Employees
22.18Retirement Association, the employer contribution is 9.10 percent of salary. For a
22.19coordinated member of the general employees retirement plan of the Public Employees
22.20Retirement Association, the employer contribution is the following percentage of salary
22.21plus any contribution rate adjustment under subdivision 3b:

22.22		Effective before January 1, 2011	6.00
22.23		Effective after December 31, 2010	6.25
22.24		Effective January 1, 2015	6.5

22.25(b) This contribution must be made from funds available to the employing
22.26subdivision by the means and in the manner provided in section 353.28.
22.27EFFECTIVE DATE.This section is effective the day following final enactment.

22.28    Sec. 7. Minnesota Statutes 2012, section 353.27, subdivision 3b, is amended to read:
22.29    Subd. 3b. Change in employee and employer contributions in certain instances.
22.30(a) For purposes of this section:
22.31(1) a contribution sufficiency exists if the total of the employee contribution under
22.32subdivision 2, the employer contribution under subdivision 3, the additional employer
22.33contribution under subdivision 3a, and any additional contribution previously imposed
23.1under this subdivision exceeds the total of the normal cost, the administrative expenses,
23.2and the amortization contribution of the general employees retirement plan as reported in
23.3the most recent actuarial valuation of the retirement plan prepared by the actuary retained
23.4under section 356.214 and prepared under section 356.215 and the standards for actuarial
23.5work of the Legislative Commission on Pensions and Retirement; and
23.6(2) a contribution deficiency exists if the total of the employee contributions under
23.7subdivision 2, the employer contributions under subdivision 3, the additional employer
23.8contribution under subdivision 3a, and any additional contribution previously imposed
23.9under this subdivision is less than the total of the normal cost, the administrative expenses,
23.10and the amortization contribution of the general employees retirement plan as reported in
23.11the most recent actuarial valuation of the retirement plan prepared by the actuary retained
23.12under section 356.214 and prepared under section 356.215 and the standards for actuarial
23.13work of the Legislative Commission on Pensions and Retirement.
23.14(b) Employee and employer contributions to the general employees retirement plan
23.15under subdivisions 2 and 3 must be adjusted:
23.16(1) if, on or after July 1, 2010, the regular actuarial valuation of the general employees
23.17retirement plan of the Public Employees Retirement Association under section 356.215
23.18indicates that there is a contribution sufficiency under paragraph (a) greater than one
23.19percent of covered payroll and that the sufficiency has existed for at least two consecutive
23.20years, the coordinated program employee and employer contribution rates must be
23.21decreased as determined under paragraph (c) to a level such that the sufficiency is no
23.22greater than one percent of covered payroll based on the most recent actuarial valuation; or
23.23(2) if, on or after July 1, 2010, the regular actuarial valuation of the general
23.24employees retirement plan of the Public Employees Retirement Association under section
23.25356.215 indicates that there is a contribution deficiency equal to or greater than 0.5 percent
23.26of covered payroll and that the deficiency has existed for at least two consecutive years,
23.27the coordinated program employee and employer contribution rates must be increased
23.28as determined under paragraph (d) to a level such that no deficiency exists based on the
23.29most recent actuarial valuation.
23.30(c) If the actuarially required contribution of the general employees retirement plan is
23.31less than the total support provided by the combined employee and employer contribution
23.32rates under subdivisions 2, 3, and 3a, by more than one percent of covered payroll,
23.33the general employees retirement plan coordinated program employee and employer
23.34contribution rates under subdivisions 2 and 3 must be decreased incrementally over one or
23.35more years by no more than 0.25 percent of pay each for employee and employer matching
23.36contribution rates to a level such that there remains a contribution sufficiency of at least one
24.1percent of covered payroll. No contribution rate decrease may be made until at least two
24.2years have elapsed since any adjustment under this subdivision has been fully implemented.
24.3(d) If the actuarially required contribution exceeds the total support provided by the
24.4combined employee and employer contribution rates under subdivisions 2, 3, and 3a,
24.5the employee and matching employer contribution rates must be increased equally to
24.6eliminate that contribution deficiency. If the contribution deficiency is:
24.7(1) less than two percent, the incremental increase may be up to 0.25 percent for the
24.8general employees retirement plan employee and matching employer contribution rates;
24.9(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase
24.10may be up to 0.5 percent for the employee and matching employer contribution rates; or
24.11(3) greater than four percent, the incremental increase may be up to 0.75 percent for
24.12the employee and matching employer contribution.
24.13(e) The general employees retirement plan contribution sufficiency or deficiency
24.14determination under paragraphs (a) to (d) must be made without the inclusion of the
24.15contributions to, the funded condition of, or the actuarial funding requirements of the
24.16MERF division.
24.17(f) Any recommended adjustment to the contribution rates must be reported to the
24.18chair and the executive director of the Legislative Commission on Pensions and Retirement
24.19by January 15 following the receipt of the most recent annual actuarial valuation prepared
24.20under section 356.215. If the Legislative Commission on Pensions and Retirement does
24.21not recommend against the rate change or does not recommend a modification in the rate
24.22change, the recommended adjustment becomes effective on the first day of the first full
24.23payroll period in the fiscal year for any salary paid on or after the January 1 next following
24.24receipt of the most recent actuarial valuation that gave rise to the adjustment the legislative
24.25session in which the Legislative Commission on Pensions and Retirement did not take any
24.26action to disapprove or modify the Public Employees Retirement Association Board of
24.27Trustees' recommendation to adjust the employee and employer rates.
24.28(g) A contribution sufficiency of up to one percent of covered payroll must be held in
24.29reserve to be used to offset any future actuarially required contributions that are more than
24.30the total combined employee and employer contributions under subdivisions 2, 3, and 3a.
24.31(h) Before any reduction in contributions to eliminate a sufficiency in excess of one
24.32percent of covered pay may be recommended, the executive director must review any
24.33need for a change in actuarial assumptions, as recommended by the actuary retained under
24.34section 356.214 in the most recent experience study of the general employees retirement
24.35plan prepared under section 356.215 and the standards for actuarial work promulgated by
24.36the Legislative Commission on Pensions and Retirement that may result in an increase
25.1in the actuarially required contribution and must report to the Legislative Commission
25.2on Pensions and Retirement any recommendation by the board to use the sufficiency
25.3exceeding one percent of covered payroll to offset the impact of an actuarial assumption
25.4change recommended by the actuary retained under section 356.214, subdivision 1, and
25.5reviewed by the actuary retained by the commission under section 356.214, subdivision 4.
25.6(i) No contribution sufficiency in excess of one percent of covered pay may be
25.7proposed to be used to increase benefits, and no benefit increase may be proposed that
25.8would initiate an automatic adjustment to increase contributions under this subdivision.
25.9Any proposed benefit improvement must include a recommendation, prepared by the
25.10actuary retained under section 356.214, subdivision 1, and reviewed by the actuary
25.11retained by the Legislative Commission on Pensions and Retirement as provided under
25.12section 356.214, subdivision 4, on how the benefit modification will be funded.
25.13EFFECTIVE DATE.This section is effective the day following final enactment.


25.17    Section 1. Minnesota Statutes 2012, section 3A.01, subdivision 1a, is amended to read:
25.18    Subd. 1a. Actuarial equivalent. (a) "Actuarial equivalent" means the condition of
25.19one allowance or benefit having an equal actuarial present value to another allowance or
25.20benefit, determined by the actuary retained under section 356.214 as of a given date at a
25.21specified age with each actuarial present value based on the mortality table applicable for
25.22the plan and approved under section 356.215, subdivision 18, and using the applicable
25.23preretirement or postretirement interest rate assumption specified in section 356.215,
25.24subdivision 8 .
25.25(b) For purposes of computing a joint and survivor annuity, the postretirement
25.26interest rate assumption specified in section 356.461 must be used, rather than the
25.27postretirement interest rate specified in section 356.215, subdivision 8.
25.28EFFECTIVE DATE.This section is effective July 1, 2014.

25.29    Sec. 2. Minnesota Statutes 2012, section 352.01, subdivision 12, is amended to read:
25.30    Subd. 12. Actuarial equivalent. (a) "Actuarial equivalent" means the condition
25.31of one annuity or benefit having an equal actuarial present value as another annuity or
25.32benefit, determined as of a given date at a specified age with each actuarial present value
25.33based on the appropriate mortality table adopted by the board of directors based on the
25.34experience of the fund as recommended by the actuary retained under section 356.214, and
26.1approved under section 356.215, subdivision 18, and using the applicable preretirement or
26.2postretirement interest rate assumption specified in section 356.215, subdivision 8.
26.3(b) For purposes of computing a joint and survivor annuity, the postretirement
26.4interest rate assumption specified in section 356.461 must be used, rather than the
26.5postretirement interest rate specified in section 356.215, subdivision 8.
26.6EFFECTIVE DATE.This section is effective July 1, 2014.

26.7    Sec. 3. Minnesota Statutes 2013 Supplement, section 352.03, subdivision 4, is
26.8amended to read:
26.9    Subd. 4. Duties and powers of board of directors. (a) The board shall:
26.10    (1) elect a chair;
26.11    (2) appoint an executive director;
26.12    (3) establish rules to administer this chapter and chapters 3A, 352B, 352C, 352D,
26.13and 490 and transact the business of the system, subject to the limitations of law;
26.14    (4) consider and dispose of, or take any other action the board of directors deems
26.15appropriate concerning, denials of applications for annuities or disability benefits under
26.16this chapter, chapter 3A, 352B, 352C, 352D, or 490, and complaints of employees and
26.17others pertaining to the retirement of employees and the operation of the system;
26.18    (5) oversee the administration of the deferred compensation plan established in
26.19section 352.965;
26.20    (6) oversee the administration of the health care savings plan established in section;
26.21and
26.22    (7) approve early retirement and optional annuity factors for all plans administered
26.23by the system, including approving retirement annuity factors for the unclassified state
26.24employees program under chapter 352D, subject to review by the actuary retained by
26.25the Legislative Commission on Pensions and Retirement; establish the schedule for
26.26implementation of the approved factors; and notify the Legislative Commission on
26.27Pensions and Retirement of the implementation schedule.
26.28    (b) The board shall advise the director on any matters relating to the system and
26.29carrying out functions and purposes of this chapter. The board's advice shall control.
26.30EFFECTIVE DATE.This section is effective July 1, 2014.

26.31    Sec. 4. Minnesota Statutes 2012, section 352B.08, subdivision 3, is amended to read:
26.32    Subd. 3. Optional annuity forms. (a) In lieu of the single life annuity provided in
26.33subdivision 2, the member or former member may elect an optional annuity form. The
27.1board of the Minnesota state retirement system shall establish a joint and survivor annuity,
27.2payable to a designated beneficiary for life, adjusted to the actuarial equivalent value of
27.3the single life annuity. The board shall also establish an additional optional annuity with
27.4an actuarial equivalent value of the single life annuity in the form of a joint and survivor
27.5annuity which provides that the elected annuity be reinstated to the single life annuity
27.6provided in subdivision 2, if after commencing the elected joint and survivor annuity, the
27.7designated beneficiary dies before the member, which reinstatement is not retroactive but
27.8takes effect for the first full month occurring after the death of the designated beneficiary.
27.9The board may also establish other actuarial equivalent value optional annuity forms. In
27.10establishing actuarial equivalent value optional annuity forms, each optional annuity form
27.11shall have the same present value as a regular single life annuity using the mortality
27.12table adopted by the board and the interest assumption specified in section 356.215,
27.13subdivision 8 , and.
27.14(b) For purposes of computing a joint and survivor annuity, the postretirement
27.15interest rate assumption specified in section 356.461 must be used, rather than the
27.16postretirement interest rate specified in section 356.215, subdivision 8.
27.17(c) The board shall obtain the written recommendation of the actuary retained under
27.18section 356.214. These recommendations shall be a part of the permanent records of
27.19the board.
27.20EFFECTIVE DATE.This section is effective July 1, 2014.

27.21    Sec. 5. Minnesota Statutes 2012, section 353.01, subdivision 14, is amended to read:
27.22    Subd. 14. Actuarial equivalent. (a) "Actuarial equivalent" means the condition
27.23of one annuity or benefit having an equal actuarial present value as another annuity or
27.24benefit, determined as of a given date with each actuarial present value based on the
27.25appropriate mortality table adopted by the board of trustees based on the experience of the
27.26fund as recommended by the actuary retained under section 356.214, and approved under
27.27section 356.215, subdivision 18, and using the applicable preretirement or postretirement
27.28interest rate assumption specified in section 356.215, subdivision 8.
27.29(b) For purposes of computing a joint and survivor annuity, the postretirement
27.30interest rate assumption specified in section 356.461 must be used rather than the
27.31postretirement interest rate specified in section 356.215, subdivision 8.
27.32EFFECTIVE DATE.This section is effective on the same date as the next mortality
27.33assumption adjustment or on July 1, 2017, whichever is earlier.

28.1    Sec. 6. Minnesota Statutes 2012, section 353.30, subdivision 3, is amended to read:
28.2    Subd. 3. Optional retirement annuity forms. (a) The board of trustees shall
28.3establish optional annuities which shall take the form of a joint and survivor annuity.
28.4Except as provided in subdivision 3a, the optional annuity forms shall be actuarially
28.5equivalent to the forms provided in section 353.29 and subdivisions 1, 1a, 1b, 1c, and 5.
28.6In establishing those optional forms, the board shall obtain the written recommendation of
28.7the actuary retained under section 356.214. The recommendations shall be a part of the
28.8permanent records of the board. A member or former member may select an optional form
28.9of annuity, subject to the provisions of section 356.46, in lieu of accepting any other form
28.10of annuity which might otherwise be available.
28.11(b) For purposes of computing a joint and survivor annuity, the postretirement
28.12interest rate assumption specified in section 356.461 must be used rather than the
28.13postretirement interest rate specified in section 356.215, subdivision 8.
28.14EFFECTIVE DATE.This section is effective on the same date as the next mortality
28.15assumption adjustment or on July 1, 2017, whichever is earlier.

28.16    Sec. 7. Minnesota Statutes 2012, section 354.05, subdivision 7, is amended to read:
28.17    Subd. 7. Actuarial equivalent. (a) "Actuarial equivalent" means the condition
28.18of one annuity or benefit having an equal actuarial present value as another annuity or
28.19benefit, determined as of a given date with each actuarial present value based on the
28.20appropriate mortality table adopted by the board of trustees based on the experience
28.21of the association as recommended by the actuary retained under section 356.214, and
28.22approved under section 356.215, subdivision 18, and using the applicable preretirement or
28.23postretirement interest rate assumption specified in section 356.215, subdivision 8.
28.24(b) For purposes of computing a joint and survivor annuity, the postretirement
28.25interest rate assumption specified in section 356.461 must be used rather than the
28.26postretirement interest rate specified in section 356.215, subdivision 8.
28.27EFFECTIVE DATE.This section is effective July 1, 2014.

28.28    Sec. 8. [356.461] VARIOUS RETIREMENT SYSTEMS; JOINT AND
28.29SURVIVOR ANNUITY COMPUTATION.
28.30    Subdivision 1. Joint and survivor annuity computation. Notwithstanding any
28.31provision of section 356.215, subdivision 8, or 356.415, subdivision 3, to the contrary,
28.32for purposes of computing joint and survivor annuities, the applicable postretirement
28.33interest assumption is 6.5 percent.
29.1    Subd. 2. Covered plans. This section applies to the following retirement plans:
29.2(1) the legislators retirement plan, established under chapter 3A, including
29.3constitutional officers as specified in that chapter;
29.4(2) the correctional state employees retirement plan of the Minnesota State
29.5Retirement System, established under chapter 352;
29.6(3) the general state employees retirement plan of the Minnesota State Retirement
29.7System, established under chapter 352;
29.8(4) the State Patrol retirement plan, established under chapter 352B;
29.9(5) the unclassified state employees retirement program of the Minnesota State
29.10Retirement System, established under chapter 352D;
29.11(6) the judges retirement plan, established under chapter 490;
29.12(7) the general employees retirement plan of the Public Employees Retirement
29.13Association, established under chapter 353, including the MERF division of the Public
29.14Employees Retirement Association;
29.15(8) the public employees police and fire retirement plan of the Public Employees
29.16Retirement Association, established under chapter 353;
29.17(9) the local government correctional service retirement plan of the Public
29.18Employees Retirement Association, established under chapter 353E; and
29.19(10) the Teachers Retirement Association, established under chapter 354.
29.20EFFECTIVE DATE.(a) For plans administered by the Minnesota State Retirement
29.21System and the Teachers Retirement Association, this section is effective July 1, 2014.
29.22(b) For plans administered by the Public Employees Retirement Association, this
29.23section applies to the determination of joint and survivor factors implemented for the
29.24applicable Public Employees Retirement Association plan effective on the same date as
29.25the next mortality assumption adjustment or on July 1, 2017, whichever is earlier.

29.26    Sec. 9. Minnesota Statutes 2012, section 490.121, subdivision 2a, is amended to read:
29.27    Subd. 2a. Actuarial equivalent. (a) "Actuarial equivalent" means the condition
29.28of one annuity or benefit having an equal actuarial present value as another annuity or
29.29benefit, determined as of a given date with each actuarial present value based on the
29.30appropriate mortality table adopted by the board of directors of the Minnesota State
29.31Retirement System based on the experience of the fund as recommended by the actuary
29.32retained under section 356.214 and approved under section 356.215, subdivision 18, and
29.33using the applicable preretirement or postretirement interest rate assumption specified in
29.34section 356.215, subdivision 8.
30.1(b) For purposes of computing a joint and survivor annuity, the postretirement
30.2interest rate assumption specified in section 356.461 must be used, rather than the
30.3postretirement interest rate specified in section 356.215, subdivision 8.
30.4EFFECTIVE DATE.This section is effective July 1, 2014.


30.7    Section 1. Minnesota Statutes 2012, section 352.90, is amended to read:
30.8352.90 POLICY.
30.9It is the policy of the legislature to provide special retirement benefits for and special
30.10contributions by certain correctional employees who may be required to retire at an early
30.11age because they lose the mental or physical capacity required to maintain the safety,
30.12security, discipline, and custody of inmates at state correctional facilities or; of patients
30.13at in the state-operated forensic services program, which is comprised of the Minnesota
30.14Security Hospital, the forensic nursing home, the forensic transition service, and the
30.15competency restoration program; of patients in the Minnesota sex offender program,; or of
30.16patients in the Minnesota Specialty Health System-Cambridge.

30.17    Sec. 2. Minnesota Statutes 2012, section 352.91, subdivision 1, is amended to read:
30.18    Subdivision 1. Qualifying jobs. "Covered correctional service" means service
30.19performed by a state employee, as defined in section 352.01, employed at a state
30.20correctional facility, the Minnesota Security Hospital state-operated forensic services
30.21program, or the Minnesota sex offender program as:
30.22(1) a corrections officer 1;
30.23(2) a corrections officer 2;
30.24(3) a corrections officer 3;
30.25(4) a corrections officer supervisor;
30.26(5) a corrections lieutenant;
30.27(6) a corrections captain;
30.28(7) a security counselor;
30.29(8) a security counselor lead; or
30.30(9) a corrections canine officer.

30.31    Sec. 3. Minnesota Statutes 2012, section 352.91, subdivision 2, is amended to read:
30.32    Subd. 2. Maintenance, correctional industry, and trades. "Covered correctional
30.33service" also means service rendered at any time by state employees as maintenance
31.1personnel, correctional industry personnel, or members of trades certified by the
31.2commissioner of management and budget to the executive director as being engaged for at
31.3least 75 percent of the employee's working time in the rehabilitation, treatment, custody,
31.4or supervision of inmates at a Minnesota correctional facility, or of patients at in the
31.5Minnesota Security Hospital state-operated forensic services program or the Minnesota
31.6sex offender program.

31.7    Sec. 4. Minnesota Statutes 2012, section 352.91, subdivision 3c, is amended to read:
31.8    Subd. 3c. Nursing personnel. (a) "Covered correctional service" means service
31.9by a state employee in one of the employment positions at a correctional facility or at,
31.10in the Minnesota Security Hospital state-operated forensic services program, or in the
31.11Minnesota sex offender program that are specified in paragraph (b) if at least 75 percent of
31.12the employee's working time is spent in direct contact with inmates or patients and the fact
31.13of this direct contact is certified to the executive director by the appropriate commissioner.
31.14(b) The employment positions are as follows:
31.15(1) registered nurse - senior;
31.16(2) registered nurse;
31.17(3) registered nurse - principal;
31.18(4) licensed practical nurse 2;
31.19(5) registered nurse advance practice; and
31.20(6) psychiatric advance practice registered nurse.
31.21EFFECTIVE DATE.This section is effective the day following final enactment.

31.22    Sec. 5. Minnesota Statutes 2012, section 352.91, subdivision 3d, is amended to read:
31.23    Subd. 3d. Other correctional personnel. (a) "Covered correctional service"
31.24means service by a state employee in one of the employment positions at a correctional
31.25facility or at in the Minnesota Security Hospital state-operated forensic services program
31.26 specified in paragraph (b) if at least 75 percent of the employee's working time is spent
31.27in direct contact with inmates or patients and the fact of this direct contact is certified to
31.28the executive director by the appropriate commissioner.
31.29    (b) The employment positions are:
31.30    (1) automotive mechanic;
31.31(2) baker;
31.32    (3) central services administrative specialist, intermediate;
31.33    (4) central services administrative specialist, principal;
31.34    (5) chaplain;
32.1    (6) chief cook;
32.2    (7) clinical program therapist 1;
32.3(8) clinical program therapist 2;
32.4(9) clinical program therapist 3;
32.5(10) clinical program therapist 4;
32.6(11) cook;
32.7    (12) cook coordinator;
32.8    (13) corrections inmate program coordinator;
32.9    (14) corrections transitions program coordinator;
32.10    (15) corrections security caseworker;
32.11    (16) corrections security caseworker career;
32.12    (17) corrections teaching assistant;
32.13    (18) delivery van driver;
32.14    (19) dentist;
32.15    (20) electrician supervisor;
32.16    (21) general maintenance worker lead;
32.17    (22) general repair worker;
32.18    (23) library/information research services specialist;
32.19    (24) library/information research services specialist senior;
32.20    (25) library technician;
32.21    (26) painter lead;
32.22    (27) plant maintenance engineer lead;
32.23    (28) plumber supervisor;
32.24    (29) psychologist 1;
32.25    (30) psychologist 3;
32.26    (31) recreation therapist;
32.27    (32) recreation therapist coordinator;
32.28    (33) recreation program assistant;
32.29    (34) recreation therapist senior;
32.30    (35) sports medicine specialist;
32.31    (36) work therapy assistant;
32.32    (37) work therapy program coordinator; and
32.33    (38) work therapy technician.

32.34    Sec. 6. Minnesota Statutes 2012, section 352.91, subdivision 3e, is amended to read:
33.1    Subd. 3e. Minnesota Specialty Health System-Cambridge. (a) "Covered
33.2correctional service" means service by a state employee in one of the employment positions
33.3with the Minnesota Specialty Health System-Cambridge specified in paragraph (b) if at
33.4least 75 percent of the employee's working time is spent in direct contact with patients
33.5who are in the Minnesota Specialty Health System-Cambridge and if service in such a
33.6position is certified to the executive director by the commissioner of human services.
33.7    (b) The employment positions are:
33.8    (1) behavior analyst 1;
33.9    (2) behavior analyst 2;
33.10    (3) behavior analyst 3;
33.11    (4) group supervisor;
33.12    (5) group supervisor assistant;
33.13    (6) human services support specialist;
33.14    (7) residential program lead;
33.15    (8) psychologist 2;
33.16    (9) recreation program assistant;
33.17    (10) recreation therapist senior;
33.18    (11) registered nurse senior;
33.19    (12) skills development specialist;
33.20    (13) social worker senior;
33.21    (14) social worker specialist; and
33.22    (15) speech pathology specialist.
33.23(c) A Department of Human Services employee who was employed at the Minnesota
33.24Specialty Health System-Cambridge immediately preceding the 2014 conversion to the
33.25community-based homes and was in covered correctional service at the time of the
33.26transition shall continue to be covered by the correctional employee retirement plan while
33.27employed and without a break in service with the Department of Human Services in the
33.28direct care and treatment services administration.

33.29    Sec. 7. Minnesota Statutes 2012, section 352.91, subdivision 3f, is amended to read:
33.30    Subd. 3f. Additional Department of Human Services personnel. (a) "Covered
33.31correctional service" means service by a state employee in one of the employment
33.32positions specified in paragraph (b) at in the Minnesota Security Hospital state-operated
33.33forensic services program or in the Minnesota sex offender program if at least 75
33.34percent of the employee's working time is spent in direct contact with patients and
34.1the determination of this direct contact is certified to the executive director by the
34.2commissioner of human services.
34.3    (b) The employment positions are:
34.4    (1) behavior analyst 2;
34.5    (2) behavior analyst 3;
34.6    (3) certified occupational therapy assistant 1;
34.7    (4) certified occupational therapy assistant 2;
34.8    (5) chemical dependency counselor senior;
34.9    (6) client advocate;
34.10    (7) clinical program therapist 2;
34.11    (7) (8) clinical program therapist 3;
34.12(8) (9) clinical program therapist 4;
34.13(9) (10) customer services specialist principal;
34.14    (10) (11) dental assistant registered;
34.15    (11) (12) group supervisor;
34.16    (12) (13) group supervisor assistant;
34.17    (13) (14) human services support specialist;
34.18    (14) (15) licensed alcohol and drug counselor;
34.19    (15) (16) licensed practical nurse 1;
34.20    (16) (17) management analyst 3;
34.21    (17) (18) occupational therapist;
34.22    (18) (19) occupational therapist, senior;
34.23    (19) (20) psychologist 1;
34.24    (20) (21) psychologist 2;
34.25    (21) (22) psychologist 3;
34.26    (22) (23) recreation program assistant;
34.27    (23) (24) recreation therapist lead;
34.28    (24) (25) recreation therapist senior;
34.29    (25) (26) rehabilitation counselor senior;
34.30    (26) (27) security supervisor;
34.31    (27) (28) skills development specialist;
34.32    (28) (29) social worker senior;
34.33    (29) (30) social worker specialist;
34.34    (30) (31) social worker specialist, senior;
34.35    (31) (32) special education program assistant;
34.36    (32) (33) speech pathology clinician;
35.1    (33) (34) work therapy assistant; and
35.2    (34) (35) work therapy program coordinator.

35.3    Sec. 8. Minnesota Statutes 2012, section 352.91, is amended by adding a subdivision
35.4to read:
35.5    Subd. 3j. State-operated forensic services program. For purposes of this section,
35.6"state-operated forensic services program" means the Minnesota Security Hospital, the
35.7forensic nursing home, the forensic transition service, and the competency restoration
35.8program.


35.11    Section 1. Minnesota Statutes 2012, section 13.632, subdivision 1, is amended to read:
35.12    Subdivision 1. Beneficiary and survivor data. The following data on beneficiaries
35.13and survivors of the St. Paul Teachers Retirement Fund Association and the Duluth
35.14Teachers Retirement Fund Association members are private data on individuals: home
35.15address, date of birth, direct deposit number, and tax withholding data.

35.16    Sec. 2. Minnesota Statutes 2012, section 122A.18, subdivision 7a, is amended to read:
35.17    Subd. 7a. Permission to substitute teach. (a) The Board of Teaching may allow a
35.18person who is enrolled in and making satisfactory progress in a board-approved teacher
35.19program and who has successfully completed student teaching to be employed as a
35.20short-call substitute teacher.
35.21(b) The Board of Teaching may issue a lifetime qualified short-call substitute
35.22teaching license to a person who:
35.23(1) was a qualified teacher under section 122A.16 while holding a continuing
35.24five-year teaching license issued by the board, and receives a retirement annuity from the
35.25Teachers Retirement Association, Minneapolis Teachers Retirement Fund Association,
35.26 or the St. Paul Teachers Retirement Fund Association, or Duluth Teachers Retirement
35.27Fund Association;
35.28(2) holds an out-of-state teaching license and receives a retirement annuity as a
35.29result of the person's teaching experience; or
35.30(3) held a continuing five-year license issued by the board, taught at least three
35.31school years in an accredited nonpublic school in Minnesota, and receives a retirement
35.32annuity as a result of the person's teaching experience.
36.1A person holding a lifetime qualified short-call substitute teaching license is not required
36.2to complete continuing education clock hours. A person holding this license may reapply
36.3to the board for a continuing five-year license and must again complete continuing
36.4education clock hours one school year after receiving the continuing five-year license.

36.5    Sec. 3. Minnesota Statutes 2013 Supplement, section 353.01, subdivision 2b, is
36.6amended to read:
36.7    Subd. 2b. Excluded employees. (a) The following public employees are not eligible
36.8to participate as members of the association with retirement coverage by the general
36.9employees retirement plan, the local government correctional employees retirement plan
36.10under chapter 353E, or the public employees police and fire retirement plan:
36.11    (1) persons whose salary from one governmental subdivision never exceeds $425 in
36.12a month;
36.13(2) public officers who are elected to a governing body, city mayors, or persons who
36.14are appointed to fill a vacancy in an elective office of a governing body, whose term of office
36.15commences on or after July 1, 2002, for the service to be rendered in that elective position;
36.16    (3) election officers or election judges;
36.17    (4) patient and inmate personnel who perform services for a governmental
36.18subdivision;
36.19    (5) except as otherwise specified in subdivision 12a, employees who are hired for
36.20a temporary position as defined under subdivision 12a, and employees who resign from
36.21a nontemporary position and accept a temporary position within 30 days in the same
36.22governmental subdivision;
36.23    (6) employees who are employed by reason of work emergency caused by fire,
36.24flood, storm, or similar disaster;
36.25    (7) employees who by virtue of their employment in one governmental subdivision
36.26are required by law to be a member of and to contribute to any of the plans or funds
36.27administered by the Minnesota State Retirement System, the Teachers Retirement
36.28Association, the Duluth Teachers Retirement Fund Association, and the St. Paul Teachers
36.29Retirement Fund Association. This clause must not be construed to prevent a person from
36.30being a member of and contributing to the Public Employees Retirement Association and
36.31also belonging to and contributing to another public pension plan or fund for other service
36.32occurring during the same period of time. A person who meets the definition of "public
36.33employee" in subdivision 2 by virtue of other service occurring during the same period of
36.34time becomes a member of the association unless contributions are made to another public
37.1retirement fund on the salary based on the other service or to the Teachers Retirement
37.2Association by a teacher as defined in section 354.05, subdivision 2;
37.3    (8) persons who are members of a religious order and are excluded from coverage
37.4under the federal Old Age, Survivors, Disability, and Health Insurance Program for the
37.5performance of service as specified in United States Code, title 42, section 410(a)(8)(A),
37.6as amended through January 1, 1987, if no irrevocable election of coverage has been made
37.7under section 3121(r) of the Internal Revenue Code of 1954, as amended;
37.8    (9) employees of a governmental subdivision who have not reached the age of
37.923 and are enrolled on a full-time basis to attend or are attending classes on a full-time
37.10basis at an accredited school, college, or university in an undergraduate, graduate, or
37.11professional-technical program, or a public or charter high school;
37.12    (10) resident physicians, medical interns, and pharmacist residents and pharmacist
37.13interns who are serving in a degree or residency program in public hospitals or clinics;
37.14    (11) students who are serving for up to five years in an internship or residency program
37.15sponsored by a governmental subdivision, including an accredited educational institution;
37.16    (12) persons who hold a part-time adult supplementary technical college license who
37.17render part-time teaching service in a technical college;
37.18    (13) except for employees of Hennepin County or Hennepin Healthcare System, Inc.,
37.19foreign citizens who are employed by a governmental subdivision under a work permit, or
37.20an H-1b visa initially issued or extended for a combined period less than three years of
37.21employment. Upon extension of the employment beyond the three-year period, the foreign
37.22citizens must be reported for membership beginning the first of the month thereafter
37.23provided the monthly earnings threshold as provided under subdivision 2a is met;
37.24    (14) public hospital employees who elected not to participate as members of the
37.25association before 1972 and who did not elect to participate from July 1, 1988, to October
37.261, 1988;
37.27    (15) except as provided in section 353.86, volunteer ambulance service personnel, as
37.28defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
37.29may still qualify as public employees under subdivision 2 and may be members of the
37.30Public Employees Retirement Association and participants in the general employees
37.31retirement plan or the public employees police and fire plan, whichever applies, on the
37.32basis of compensation received from public employment service other than service as
37.33volunteer ambulance service personnel;
37.34    (16) except as provided in section 353.87, volunteer firefighters, as defined in
37.35subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties,
37.36but a person who is a volunteer firefighter may still qualify as a public employee under
38.1subdivision 2 and may be a member of the Public Employees Retirement Association and
38.2a participant in the general employees retirement plan or the public employees police
38.3and fire plan, whichever applies, on the basis of compensation received from public
38.4employment activities other than those as a volunteer firefighter;
38.5    (17) pipefitters and associated trades personnel employed by Independent School
38.6District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
38.7pipefitters local 455 pension plan who were either first employed after May 1, 1997, or,
38.8if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter
38.9241, article 2, section 12;
38.10    (18) electrical workers, plumbers, carpenters, and associated trades personnel who
38.11are employed by Independent School District No. 625, St. Paul, or the city of St. Paul,
38.12who have retirement coverage under a collective bargaining agreement by the Electrical
38.13Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
38.14or the pension plan applicable to Carpenters Local 87 who were either first employed after
38.15May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under
38.16Laws 2000, chapter 461, article 7, section 5;
38.17    (19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
38.18painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul
38.19or Independent School District No. 625, St. Paul, with coverage under a collective
38.20bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan,
38.21the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324
38.22pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities
38.23Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if
38.24first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special
38.25Session chapter 10, article 10, section 6;
38.26    (20) plumbers who are employed by the Metropolitan Airports Commission, with
38.27coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan,
38.28who either were first employed after May 1, 2001, or if first employed before May 2,
38.292001, elected to be excluded under Laws 2001, First Special Session chapter 10, article
38.3010, section 6;
38.31    (21) employees who are hired after June 30, 2002, to fill seasonal positions under
38.32subdivision 12b which are limited in duration by the employer to 185 consecutive calendar
38.33days or less in each year of employment with the governmental subdivision;
38.34    (22) persons who are provided supported employment or work-study positions by a
38.35governmental subdivision and who participate in an employment or industries program
38.36maintained for the benefit of these persons where the governmental subdivision limits the
39.1position's duration to up to five years, including persons participating in a federal or state
39.2subsidized on-the-job training, work experience, senior citizen, youth, or unemployment
39.3relief program where the training or work experience is not provided as a part of, or
39.4for, future permanent public employment;
39.5    (23) independent contractors and the employees of independent contractors;
39.6    (24) reemployed annuitants of the association during the course of that
39.7reemployment; and
39.8(25) persons appointed to serve on a board or commission of a governmental
39.9subdivision or an instrumentality thereof.
39.10(b) Any person performing the duties of a public officer in a position defined in
39.11subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
39.12employee of an independent contractor.

39.13    Sec. 4. Minnesota Statutes 2012, section 354.05, subdivision 2, is amended to read:
39.14    Subd. 2. Teacher. (a) "Teacher" means:
39.15(1) a person who renders service as a teacher, supervisor, principal, superintendent,
39.16librarian, nurse, counselor, social worker, therapist, or psychologist in a public school of
39.17the state located outside of the corporate limits of the city of Duluth or the city of St. Paul,
39.18or in any charter school, irrespective of the location of the school, or in any charitable,
39.19penal, or correctional institutions of a governmental subdivision, or who is engaged in
39.20educational administration in connection with the state public school system, but excluding
39.21the University of Minnesota, whether the position be a public office or an employment, and
39.22not including the members or officers of any general governing or managing board or body;
39.23(2) an employee of the Teachers Retirement Association;
39.24(3) a person who renders teaching service on a part-time basis and who also renders
39.25other services for a single employing unit. A person whose teaching service comprises at
39.26least 50 percent of the combined employment salary is a member of the association for all
39.27services with the single employing unit. If the person's teaching service comprises less
39.28than 50 percent of the combined employment salary, the executive director must determine
39.29whether all or none of the combined service is covered by the association; or
39.30(4) a person who is not covered by the plans established under chapter 352D, 354A,
39.31or 354B and who is employed by the Board of Trustees of the Minnesota State Colleges
39.32and Universities system in an unclassified position as:
39.33(i) a president, vice-president, or dean;
39.34(ii) a manager or a professional in an academic or an academic support program
39.35other than specified in item (i);
40.1(iii) an administrative or a service support faculty position; or
40.2(iv) a teacher or a research assistant.
40.3(b) "Teacher" does not mean:
40.4(1) a person who works for a school or institution as an independent contractor as
40.5defined by the Internal Revenue Service;
40.6(2) a person who renders part-time teaching service or who is a customized trainer
40.7as defined by the Minnesota State Colleges and Universities system if (i) the service is
40.8incidental to the regular nonteaching occupation of the person; and (ii) the employer
40.9stipulates annually in advance that the part-time teaching service or customized training
40.10service will not exceed 300 hours in a fiscal year and retains the stipulation in its records;
40.11and (iii) the part-time teaching service or customized training service actually does not
40.12exceed 300 hours in a fiscal year; or
40.13(3) a person exempt from licensure under section 122A.30.

40.14    Sec. 5. Minnesota Statutes 2012, section 354.05, subdivision 13, is amended to read:
40.15    Subd. 13. Allowable service. "Allowable service" means:
40.16    (1) Any service rendered by a teacher for which on or before July 1, 1957, the
40.17teacher's account in the retirement fund was credited by reason of employee contributions
40.18in the form of salary deductions, payments in lieu of salary deductions, or in any other
40.19manner authorized by Minnesota Statutes 1953, sections 135.01 to 135.13, as amended by
40.20Laws 1955, chapters 361, 549, 550, 611, or;
40.21    (2) Any service rendered by a teacher for which on or before July 1, 1961, the
40.22teacher elected to obtain credit for service by making payments to the fund pursuant to
40.23 under Minnesota Statutes 1980, section 354.09 and section 354.51, or;
40.24    (3) Any service rendered by a teacher after July 1, 1957, for any calendar month
40.25when the member receives salary from which deductions are made, deposited and credited
40.26in the fund, or;
40.27    (4) Any service rendered by a person after July 1, 1957, for any calendar month where
40.28payments in lieu of salary deductions are made, deposited and credited into the fund as
40.29provided in Minnesota Statutes 1980, section 354.09, subdivision 4, and section 354.53, or;
40.30    (5) Any service rendered by a teacher for which the teacher elected to obtain credit
40.31for service by making payments to the fund pursuant to under Minnesota Statutes 1980,
40.32section 354.09, subdivisions 1 and 4, sections 354.50, 354.51, Minnesota Statutes 1957,
40.33section 135.41, subdivision 4, Minnesota Statutes 1971, section 354.09, subdivision 2, or
40.34Minnesota Statutes, 1973 Supplement, section 354.09, subdivision 3, or;
41.1    (6) Both service during years of actual membership in the course of which
41.2contributions were currently made and service in years during which the teacher was not a
41.3member but for which the teacher later elected to obtain credit by making payments to the
41.4fund as permitted by any law then in effect, or;
41.5    (7) Any service rendered where contributions were made and no credit was
41.6established because of the limitations contained in Minnesota Statutes 1957, section
41.7135.09, subdivision 2, as determined by the ratio between the amounts of money credited
41.8to the teacher's account in a fiscal year and the maximum retirement contribution allowable
41.9for that year, or;
41.10    (8) MS 2002 [Expired]
41.11    (9) A period of time during which a teacher was on strike without pay, not to exceed a
41.12period of one year, if payment in lieu of salary deductions is made under section 354.72, or;
41.13    (10) A period of service before July 1, 2006, that was properly credited as allowable
41.14service by the Minneapolis Teachers Retirement Fund Association, and that was rendered
41.15by a teacher as an employee of Special School District No. 1, Minneapolis, or by an
41.16employee of the Minneapolis Teachers Retirement Fund Association who was a member
41.17of the Minneapolis Teachers Retirement Fund Association by virtue of that employment,
41.18who has not begun receiving an annuity or other retirement benefit from the former
41.19Minneapolis Teachers Retirement Fund Association calculated in whole or in part on that
41.20service before July 1, 2006, and who has not taken a refund of member contributions
41.21related to that service unless the refund is repaid under section 354.50, subdivision 4.
41.22Service as an employee of Special School District No. 1, Minneapolis, on or after July 1,
41.232006, is "allowable service" only as provided by this chapter.; or
41.24(11) A period of service before July 1, 2015, that was properly credited as allowable
41.25service by the Duluth Teachers Retirement Fund Association, and that was rendered
41.26by a teacher as an employee of Independent School District No. 709, Duluth, or by an
41.27employee of the Duluth Teachers Retirement Fund Association who was a member of the
41.28Duluth Teachers Retirement Fund Association by virtue of that employment, who has not
41.29begun receiving an annuity or other retirement benefit from the former Duluth Teachers
41.30Retirement Fund Association calculated in whole or in part on that service before July
41.311, 2015, and who has not taken a refund of member contributions related to that service
41.32unless the refund is repaid under section 354.50, subdivision 4. Service as an employee
41.33of Independent School District No. 709, Duluth, on or after July 1, 2015, is "allowable
41.34service" only as provided by this chapter.

41.35    Sec. 6. Minnesota Statutes 2012, section 354.42, subdivision 2, is amended to read:
42.1    Subd. 2. Employee contribution. (a) For a basic member, the employee
42.2contribution to the fund is the following percentage of the member's salary:

42.3		Period	Basic Program	Coordinated Program
42.4		before July 1, 2011	9.0 percent
42.5		from July 1, 2011, until June 30, 2012	9.5 percent
42.6		from July 1, 2012, until June 30, 2013	10.0 percent
42.7		from July 1, 2013, until June 30, 2014	10.5 percent	7.0 percent
42.8		after June 30, 2014	11.0 percent	7.5 percent

42.9(b) For a coordinated member, the employee contribution is the following percentage
42.10of the member's salary:

42.11		before July 1, 2011	5.5 percent
42.12		from July 1, 2011, until June 30, 2012	6.0 percent
42.13		from July 1, 2012, until June 30, 2013	6.5 percent
42.14		from July 1, 2013, until June 30, 2014	7.0 percent
42.15		after June 30, 2014	7.5 percent

42.16(c) (b) When an employee contribution rate changes for a fiscal year, the new
42.17contribution rate is effective for the entire salary paid for each employer unit with the
42.18first payroll cycle reported.
42.19(d) (c) After June 30, 2015, if a contribution rate revision is required under
42.20subdivisions 4a, 4b, and 4c, the employee contributions under paragraphs (a) and (b) must
42.21be adjusted accordingly.
42.22(e) (d) This contribution must be made by deduction from salary. Where any portion
42.23of a member's salary is paid from other than public funds, the member's employee
42.24contribution must be based on the entire salary received.

42.25    Sec. 7. Minnesota Statutes 2012, section 354.42, subdivision 3, is amended to read:
42.26    Subd. 3. Employer. (a) The regular employer contribution to the fund by Special
42.27School District No. 1, Minneapolis, is an amount equal to the applicable following
42.28percentage of salary of each coordinated member and the applicable following percentage
42.29of salary of each basic member: specified in paragraph (c).

42.30		Period	Coordinated Member			Basic Member
42.31		before July 1, 2011		5.5 percent		9.5 percent
42.32		from July 1, 2011, until June 30, 2012		6.0 percent		10.0 percent
42.33		from July 1, 2012, until June 30, 2013		6.5 percent		10.5 percent
42.34		from July 1, 2013, until June 30, 2014		7.0 percent		11.0 percent
42.35		after June 30, 2014		7.5 percent		11.5 percent

43.1The additional employer contribution to the fund by Special School District No. 1,
43.2Minneapolis, is an amount equal to 3.64 percent of the salary of each teacher who is a
43.3coordinated member or who is a basic member.
43.4(b) The regular employer contribution to the fund by Independent School District
43.5No. 709, Duluth, is an amount equal to the applicable percentage of salary of each old law
43.6or new law coordinated member specified for the coordinated program in paragraph (c).
43.7(b) (c) The employer contribution to the fund for every other employer is an amount
43.8equal to the applicable following percentage of the salary of each coordinated member and
43.9the applicable following percentage of the salary of each basic member:

43.10		Period	Coordinated Member			Basic Member
43.11		before July 1, 2011		5.5 percent		9.5 percent
43.12		from July 1, 2011, until June 30, 2012		6.0 percent		10.0 percent
43.13		from July 1, 2012, until June 30, 2013		6.5 percent		10.5 percent
43.14		from July 1, 2013, until June 30, 2014		7.0 percent		11.0 percent
43.15		after June 30, 2014		7.5 percent		11.5 percent

43.16(c) (d) When an employer contribution rate changes for a fiscal year, the new
43.17contribution rate is effective for the entire salary paid for each employer unit with the
43.18first payroll cycle reported.
43.19(d) (e) After June 30, 2015, if a contribution rate revision is made under subdivisions
43.204a, 4b, and 4c, the employer contributions under paragraphs (a) and, (b), and (c) must
43.21be adjusted accordingly.

43.22    Sec. 8. Minnesota Statutes 2013 Supplement, section 354.436, is amended to read:
43.23354.436 DIRECT STATE AID ON BEHALF OF THE FORMER
43.24MINNEAPOLIS FIRST CLASS CITY TEACHERS RETIREMENT FUND
43.25ASSOCIATION ASSOCIATIONS.
43.26    Subdivision 1. Aid authorization. The state shall pay $12,954,000 to the Teachers
43.27Retirement Association on behalf of the former Minneapolis Teachers Retirement Fund
43.28Association and shall pay $14,377,000 on behalf of the Duluth Teachers Retirement
43.29Fund Association.
43.30    Subd. 2. Aid appropriation. The commissioner of management and budget shall
43.31pay the aid amounts under subdivision 1 annually on October 1. The amount required
43.32is appropriated annually from the general fund to the commissioner of management and
43.33budget.
43.34    Subd. 3. Aid expiration. The aid amounts specified in this section terminates
43.35 terminate and this section expires on the October 1 next following the later of the
43.36following dates when: (1) the current assets of the Teachers Retirement Association
44.1fund equal or exceed the actuarial accrued liabilities of the fund as determined in the
44.2most recent actuarial valuation report for the Teachers Retirement Association fund by
44.3the actuary retained under section 356.214, or on the established date for full funding
44.4under section 356.215, subdivision 11, whichever occurs earlier; and (2) the member and
44.5employer contribution rates are first determined to be eligible for a reduction under section
44.6354.42, subdivisions 4a, 4b, 4c, and 4d.

44.7    Sec. 9. Minnesota Statutes 2013 Supplement, section 354.44, subdivision 6, is
44.8amended to read:
44.9    Subd. 6. Computation of formula program retirement annuity. (a) The formula
44.10retirement annuity must be computed in accordance with the applicable provisions of the
44.11formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
44.12section 354.05, subdivision 13a, for the period of the member's formula service credit.
44.13    (b) This paragraph, in conjunction with paragraph (c), applies to a person who first
44.14became a member of the association or a member of a pension fund listed in section
44.15356.30, subdivision 3 , before July 1, 1989, unless paragraph (d), in conjunction with
44.16paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The
44.17average salary as defined in section 354.05, subdivision 13a, multiplied by the following
44.18percentages per year of formula service credit shall determine the amount of the annuity to
44.19which the member qualifying therefor is entitled for service rendered before July 1, 2006:

44.20		Period		Coordinated Member		Basic Member
44.21 44.22		Each year of service during first ten		1.2 percent per year		2.2 percent per year
44.23 44.24		Each year of service thereafter		1.7 percent per year		2.7 percent per year

44.25    For service rendered on or after July 1, 2006, by a member other than a member
44.26who was a member of the former Duluth Teachers Retirement Fund Association between
44.27January 1, 2006, and June 30, 2015, and for service rendered on or after July 1, 2013, by a
44.28member who was a member of the former Duluth Teachers Retirement Fund Association
44.29between January 1, 2013, and June 30, 2015, the average salary as defined in section
44.30354.05 , subdivision 13a, multiplied by the following percentages per year of service credit,
44.31determines the amount the annuity to which the member qualifying therefor is entitled:

44.32		Period		Coordinated Member		Basic Member
44.33 44.34		Each year of service during first ten		1.4 percent per year		2.2 percent per year
44.35 44.36		Each year of service after ten years of service		1.9 percent per year		2.7 percent per year

45.1    (c)(i) This paragraph applies only to a person who first became a member of the
45.2association or a member of a pension fund listed in section 356.30, subdivision 3, before
45.3July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in
45.4conjunction with this paragraph than when calculated under paragraph (d), in conjunction
45.5with paragraph (e).
45.6    (ii) Where any member retires prior to normal retirement age under a formula
45.7annuity, the member shall be paid a retirement annuity in an amount equal to the normal
45.8annuity provided in paragraph (b) reduced by one-quarter of one percent for each month
45.9that the member is under normal retirement age at the time of retirement except that for
45.10any member who has 30 or more years of allowable service credit, the reduction shall be
45.11applied only for each month that the member is under age 62.
45.12    (iii) Any member whose attained age plus credited allowable service totals 90 years
45.13is entitled, upon application, to a retirement annuity in an amount equal to the normal
45.14annuity provided in paragraph (b), without any reduction by reason of early retirement.
45.15    (d) This paragraph applies to a member who has become at least 55 years old and
45.16first became a member of the association after June 30, 1989, and to any other member
45.17who has become at least 55 years old and whose annuity amount when calculated under
45.18this paragraph and in conjunction with paragraph (e), is higher than it is when calculated
45.19under paragraph (b), in conjunction with paragraph (c). For a basic member, the average
45.20salary, as defined in section 354.05, subdivision 13a, multiplied by 2.7 percent for each
45.21year of service for a basic member determines the amount of the retirement annuity to
45.22which the basic member is entitled. The annuity of a basic member who was a member of
45.23the former Minneapolis Teachers Retirement Fund Association as of June 30, 2006, must
45.24be determined according to the annuity formula under the articles of incorporation of the
45.25former Minneapolis Teachers Retirement Fund Association in effect as of that date. For a
45.26coordinated member, the average salary, as defined in section 354.05, subdivision 13a,
45.27multiplied by 1.7 percent for each year of service rendered before July 1, 2006, and by 1.9
45.28percent for each year of service rendered on or after July 1, 2006, for a member other than
45.29a member who was a member of the former Duluth Teachers Retirement Fund Association
45.30between January 1, 2006, and June 30, 2015, and by 1.9 percent for each year of service
45.31rendered on or after July 1, 2013, for a member of the former Duluth Teachers Retirement
45.32Fund Association between January 1, 2013, and June 30, 2015, determines the amount of
45.33the retirement annuity to which the coordinated member is entitled.
45.34    (e) This paragraph applies to a person who has become at least 55 years old and first
45.35becomes a member of the association after June 30, 1989, and to any other member who
45.36has become at least 55 years old and whose annuity is higher when calculated under
46.1paragraph (d) in conjunction with this paragraph than when calculated under paragraph
46.2(b), in conjunction with paragraph (c). An employee who retires under the formula annuity
46.3before the normal retirement age shall be paid the normal annuity provided in paragraph
46.4(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that
46.5would be payable to the employee if the employee deferred receipt of the annuity and the
46.6annuity amount were augmented at an annual rate of three percent compounded annually
46.7from the day the annuity begins to accrue until the normal retirement age if the employee
46.8became an employee before July 1, 2006, and at 2.5 percent compounded annually if the
46.9employee becomes an employee after June 30, 2006. Except in regards to section 354.46,
46.10this paragraph remains in effect until June 30, 2015.
46.11(f) After June 30, 2020, this paragraph applies to a person who has become at least
46.1255 years old and first becomes a member of the association after June 30, 1989, and to any
46.13other member who has become at least 55 years old and whose annuity is higher when
46.14calculated under paragraph (d) in conjunction with this paragraph than when calculated
46.15under paragraph (b) in conjunction with paragraph (c). An employee who retires under
46.16the formula annuity before the normal retirement age is entitled to receive the normal
46.17annuity provided in paragraph (d). For a person who is at least age 62 or older and has at
46.18least 30 years of service, the annuity must be reduced by an early reduction factor of six
46.19percent per year of the annuity that would be payable to the employee if the employee
46.20deferred receipt of the annuity and the annuity amount were augmented at an annual rate
46.21of three percent compounded annually from the day the annuity begins to accrue until the
46.22normal retirement age if the employee became an employee before July 1, 2006, and at 2.5
46.23percent compounded annually if the employee became an employee after June 30, 2006.
46.24For a person who is not at least age 62 or older and does not have at least 30 years of
46.25service, the annuity would be reduced by an early reduction factor of four percent per year
46.26for ages 55 through 59 and seven percent per year of the annuity that would be payable
46.27to the employee if the employee deferred receipt of the annuity and the annuity amount
46.28were augmented at an annual rate of three percent compounded annually from the day
46.29the annuity begins to accrue until the normal retirement age if the employee became an
46.30employee before July 1, 2006, and at 2.5 percent compounded annually if the employee
46.31became an employee after June 30, 2006.
46.32(g) After June 30, 2015, and before July 1, 2020, for a person who would have
46.33a reduced retirement annuity under either paragraph (e) or (f) if they were applicable,
46.34the employee is entitled to receive a reduced annuity which must be calculated using
46.35a blended reduction factor augmented monthly by 1/60 of the difference between the
46.36reduction required under paragraph (e) and the reduction required under paragraph (f).
47.1    (h) No retirement annuity is payable to a former employee with a salary that exceeds
47.295 percent of the governor's salary unless and until the salary figures used in computing
47.3the highest five successive years average salary under paragraph (a) have been audited by
47.4the Teachers Retirement Association and determined by the executive director to comply
47.5with the requirements and limitations of section 354.05, subdivisions 35 and 35a.

47.6    Sec. 10. [354.73] RETIREMENT COVERAGE RELATED TO THE FORMER
47.7DULUTH TEACHERS RETIREMENT FUND ASSOCIATION.
47.8    Subdivision 1. Application. This section applies to the retirement coverage of
47.9members of the former Duluth Teachers Retirement Fund Association transferred to the
47.10Teachers Retirement Association by section 46.
47.11    Subd. 2. Teachers Retirement Association as successor in interest. The Teachers
47.12Retirement Association is the successor in interest to all claims which the former Duluth
47.13Teachers Retirement Fund Association may have or may have been able to assert against
47.14any person on June 30, 2015, and is the successor in interest to all claims which could
47.15have been asserted against the former Duluth Teachers Retirement Fund Association,
47.16subject to the following:
47.17(1) the Teachers Retirement Association is not liable for any claim against the
47.18Duluth Teachers Retirement Fund Association, its former board or board members, which
47.19is founded upon a claim of breach of fiduciary duty, where the act or acts constituting the
47.20claimed breach were not done in good faith;
47.21(2) the Teachers Retirement Association may assert any applicable defense to
47.22any claim in any judicial or administrative proceeding that the former Duluth Teachers
47.23Retirement Fund Association or its board would otherwise have been entitled to assert;
47.24(3) the Teachers Retirement Association may assert any applicable defense that it
47.25may assert in its capacity as a statewide agency; and
47.26(4) the Teachers Retirement Association shall indemnify any former fiduciary of the
47.27Duluth Teachers Retirement Fund Association consistent with section 356A.11.
47.28    Subd. 3. Benefit calculation. (a) For every deferred, inactive, disabled, and
47.29retired member of the Duluth Teachers Retirement Fund Association transferred under
47.30subdivision 1, and the survivors of these members, annuities or benefits earned before July
47.311, 2015, other than future postretirement adjustments, must be calculated and paid by the
47.32Teachers Retirement Association under the laws, articles of incorporation, and bylaws of
47.33the former Duluth Teachers Retirement Fund Association that were in effect relative to
47.34the person on the date of the person's termination of active service covered by the former
47.35Duluth Teachers Retirement Fund Association.
48.1(b) Former Duluth Teachers Retirement Fund Association members who retired
48.2before July 1, 2015, must receive postretirement adjustments after January 1, 2015, only
48.3as provided in section 356.415. All other benefit recipients of the former Duluth Teachers
48.4Retirement Fund Association must receive postretirement adjustments after December 31,
48.52015, only as provided in section 356.415.
48.6(c) This consolidation does not impair or diminish benefits for an active, deferred,
48.7or retired member or a survivor of an active, deferred, or retired member under the
48.8former Duluth Teachers Retirement Fund Association in existence at the time of the
48.9consolidation, except that any future postretirement adjustments must be paid after July 1,
48.102015, in accordance with paragraph (b), and all benefits based on service on or after July
48.111, 2015, must be determined only by laws governing the Teachers Retirement Association.

48.12    Sec. 11. Minnesota Statutes 2012, section 354A.011, subdivision 11, is amended to read:
48.13    Subd. 11. Coordinated member. "Coordinated member" means any member of the
48.14teachers retirement fund association who is covered by any agreement or modification
48.15made between the state and the Secretary of Health, Education and Welfare making the
48.16provisions of the federal Old Age, Survivors and Disability Insurance Act applicable
48.17to certain teachers except in the case of a member of the Duluth Teachers Retirement
48.18Fund Association, in which it means additionally that the member either first became a
48.19member prior to July 1, 1981, and elected to be covered by the new law coordinated
48.20program of the Duluth Teachers Retirement Fund Association or first became a member
48.21on or subsequent to July 1, 1981.

48.22    Sec. 12. Minnesota Statutes 2012, section 354A.011, subdivision 15a, is amended to
48.23read:
48.24    Subd. 15a. Normal retirement age. "Normal retirement age" means age 65 for a
48.25person who first became a member of the coordinated program of the St. Paul Teachers
48.26Retirement Fund Association or the new law coordinated program of the Duluth Teachers
48.27Retirement Fund Association or a member of a pension fund listed in section 356.30,
48.28subdivision 3 , before July 1, 1989. For a person who first became a member of the
48.29coordinated program of the St. Paul Teachers Retirement Fund Association or the new law
48.30coordinated program of the Duluth Teachers Retirement Fund Association after June 30,
48.311989, normal retirement age means the higher of age 65 or retirement age, as defined in
48.32United States Code, title 42, section 416(l), as amended, but not to exceed age 66. For a
48.33person who is a member of the basic program of the St. Paul Teachers Retirement Fund
48.34Association or the old law coordinated program of the Duluth Teachers Retirement Fund
49.1Association, normal retirement age means the age at which a teacher becomes eligible for
49.2a normal retirement annuity computed upon meeting the age and service requirements
49.3specified in the applicable provisions of the articles of incorporation or bylaws of the
49.4respective teachers retirement fund association.

49.5    Sec. 13. Minnesota Statutes 2012, section 354A.011, subdivision 27, is amended to read:
49.6    Subd. 27. Teacher. (a) "Teacher" means any person who renders service for a public
49.7school district, other than a charter school, located in the corporate limits of Duluth or
49.8 St. Paul, as any of the following:
49.9(1) a full-time employee in a position for which a valid license from the state
49.10Department of Education is required;
49.11(2) an employee of the teachers retirement fund association located in the city of the
49.12first class St. Paul;
49.13(3) a part-time employee in a position for which a valid license from the state
49.14Department of Education is required; or
49.15(4) a part-time employee in a position for which a valid license from the state
49.16Department of Education is required who also renders other nonteaching services for the
49.17school district, unless the board of trustees of the teachers retirement fund association
49.18determines that the combined employment is on the whole so substantially dissimilar to
49.19teaching service that the service may not be covered by the association.
49.20(b) The term does not mean any person who renders service in the school district
49.21as any of the following:
49.22(1) an independent contractor or the employee of an independent contractor;
49.23(2) an employee who is a full-time teacher covered by the Teachers Retirement
49.24Association or by another teachers retirement fund association established pursuant to
49.25this chapter or under chapter 354;
49.26(3) an employee who is exempt from licensure pursuant to section 122A.30;
49.27(4) an employee who is a teacher in a technical college located in a city of the first
49.28class unless the person elects coverage by the applicable first class city teacher retirement
49.29fund association under section 354B.21, subdivision 2;
49.30(5) a teacher employed by a charter school, irrespective of the location of the
49.31school; or
49.32(6) an employee who is a part-time teacher in a technical college in a the city of the
49.33first class St. Paul and who has elected coverage by the applicable first class city teacher
49.34retirement fund association under section 354B.21, subdivision 2, but (i) the teaching
49.35service is incidental to the regular nonteaching occupation of the person; (ii) the applicable
50.1technical college stipulates annually in advance that the part-time teaching service will not
50.2exceed 300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed
50.3300 hours in the fiscal year to which the certification applies.

50.4    Sec. 14. Minnesota Statutes 2012, section 354A.021, subdivision 1, is amended to read:
50.5    Subdivision 1. Establishment. There is established a teachers retirement fund
50.6association in each of the cities city of Duluth and St. Paul. The associations shall be
50.7 association is known respectively as the "Duluth Teachers Retirement Fund Association"
50.8and the "St. Paul Teachers Retirement Fund Association." Each The association shall be
50.9 is a continuation of the teachers retirement fund association with the same corporate
50.10name established pursuant to under the authorization contained in Laws 1909, chapter
50.11343, section 1.

50.12    Sec. 15. [354A.022] AUTHORIZATION TO CERTIFY FUNDS TO STATE
50.13BOARD OF INVESTMENT.
50.14    Subdivision 1. Certification of funds to State Board of Investment. The chief
50.15administrative officer of the Duluth Teachers Retirement Fund Association, from time
50.16to time, may certify to the State Board of Investment those portions of the assets of the
50.17retirement plan that are not needed for administrative expenses or benefit payments.
50.18Assets certified to the State Board of Investment must be invested under sections 11A.14
50.19and 11A.23. The chief administrative officer of the Duluth Teachers Retirement Fund
50.20Association may certify assets for withdrawal from the State Board of Investment only
50.21to make benefit payments or to pay administrative expenses or investment expenses of
50.22existing direct real estate holdings or assets that are noncompliant with State Board of
50.23Investment objectives or limitations.
50.24    Subd. 2. Investment of certified funds. Assets certified to the State Board of
50.25Investment are deemed to be from a covered retirement fund required to be invested by
50.26the State Board of Investment under section 11A.23.

50.27    Sec. 16. Minnesota Statutes 2012, section 354A.092, is amended to read:
50.28354A.092 SABBATICAL LEAVE.
50.29Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund
50.30Association or any teacher in the new law coordinated program of the Duluth Teachers
50.31Retirement Fund Association who is granted a sabbatical leave shall be is entitled to
50.32receive allowable service credit in the applicable association for periods of sabbatical
50.33leave. To obtain the service credit, the teacher on sabbatical leave shall make an employee
51.1contribution to the applicable association. No teacher shall be is entitled to receive more
51.2than three years of allowable service credit pursuant to under this section for a period or
51.3periods of sabbatical leave during any ten consecutive fiscal or calendar years, whichever is
51.4the applicable plan year for the teachers retirement fund association. If the teacher granted a
51.5sabbatical leave makes the employee contribution for a period of sabbatical leave pursuant
51.6to under this section, the employing unit shall make an employer contribution on behalf of
51.7the teacher to the applicable association for that period of sabbatical leave in the manner
51.8described in section 354A.12, subdivision 2a. The employee and employer contributions
51.9shall must be in an amount equal to the employee and employer contribution rates in effect
51.10for other active members of the association covered by the same program applied to a salary
51.11figure equal to the teacher's actual covered salary for the plan year immediately preceding
51.12the sabbatical leave period. Payment of the employee contribution authorized pursuant
51.13to under this section shall must be made by the teacher on or before June 30 of year
51.14next following the year in which the sabbatical leave terminated and shall must be made
51.15without interest. For sabbatical leaves taken after June 30, 1986, the required employer
51.16contributions shall must be paid by the employing unit within 30 days after notification by
51.17the association of the amount due. If the employee contributions for the sabbatical leave
51.18period are less than an amount equal to the applicable contribution rate applied to a salary
51.19figure equal to the teacher's actual covered salary for the plan year immediately preceding
51.20the sabbatical leave period, service credit shall must be prorated. The prorated service
51.21credit shall must be determined by the ratio between the amount of the actual payment
51.22which was made and the full contribution amount payable pursuant to under this section.

51.23    Sec. 17. Minnesota Statutes 2012, section 354A.093, subdivision 1, is amended to read:
51.24    Subdivision 1. Eligibility. Any teacher in the coordinated program of the St. Paul
51.25Teachers Retirement Fund Association or any teacher in the new law coordinated program
51.26of the Duluth Teachers Retirement Fund Association who is absent from employment by
51.27reason of service in the uniformed services as defined in United States Code, title 38,
51.28section 4303(13) and who returns to the employer providing active teaching service upon
51.29discharge from uniformed service within the time frames required under United States
51.30Code, title 38, section 4312(e), may receive allowable service credit in the applicable
51.31 association for all or a portion of the period of uniformed service, provided that the teacher
51.32did not separate from uniformed service with a dishonorable or bad conduct discharge
51.33or under other than honorable conditions.

51.34    Sec. 18. Minnesota Statutes 2012, section 354A.096, is amended to read:
52.1354A.096 MEDICAL LEAVE.
52.2Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund
52.3Association or the new law coordinated program of the Duluth Teachers Retirement Fund
52.4Association who is on an authorized medical leave of absence and subsequently returns to
52.5teaching service is entitled to receive allowable service credit, not to exceed one year, for
52.6the period of leave, upon making the prescribed payment to the fund. This payment must
52.7include the required employee and employer contributions at the rates specified in section
52.8354A.12 , subdivisions 1 and 2a, as applied to the member's average full-time monthly
52.9salary rate on the date the leave of absence commenced plus annual interest at the rate of
52.108.5 percent per year from the end of the fiscal year during which the leave terminates to the
52.11end of the month during which payment is made. The member must pay the total amount
52.12required unless the employing unit, at its option, pays the employer contributions. The total
52.13amount required must be paid by the end of the fiscal year following the fiscal year in which
52.14the leave of absence terminated or before the member retires, whichever is earlier. Payment
52.15must be accompanied by a copy of the resolution or action of the employing authority
52.16granting the leave and the employing authority, upon granting the leave, must certify the
52.17leave to the association in a manner specified by the executive director. A member may not
52.18receive more than one year of allowable service credit during any fiscal year by making
52.19payment under this section. A member may not receive disability benefits under section
52.20354A.36 and receive allowable service credit under this section for the same period of time.

52.21    Sec. 19. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 1, is
52.22amended to read:
52.23    Subdivision 1. Employee contributions. (a) The contribution required to be paid
52.24by each member of a the St. Paul Teachers Retirement Fund Association is the percentage
52.25of total salary specified below for the applicable association and program:

52.26		Association and Program	Percentage of Total Salary
52.27	Duluth Teachers Retirement Fund Association
52.28		old law and new law
52.29		coordinated programs
52.30		before July 1, 2013	6.5 percent
52.31		effective July 1, 2013	7.0 percent
52.32		effective July 1, 2014	7.5 percent
52.33	St. Paul Teachers Retirement Fund Association
52.34		basic program after June 30, 2012	8.5 percent
52.35		basic program after June 30, 2013	8.75 percent
52.36		basic program after June 30, 2014	9.0 percent
52.37		basic program after June 30, 2015	9.5 percent
53.1		basic program after June 30, 2016	10.0 percent
53.2		coordinated program after June 30, 2012	6.0 percent
53.3		coordinated program after June 30, 2013	6.25 percent
53.4		coordinated program after June 30, 2014	6.5 percent
53.5		coordinated program after June 30, 2015	7.0 percent
53.6		coordinated program after June 30, 2016	7.5 percent

53.7(b) Contributions shall must be made by deduction from salary and must be remitted
53.8directly to the respective St. Paul Teachers Retirement Fund Association at least once
53.9each month.
53.10(c) When an employee contribution rate changes for a fiscal year, the new
53.11contribution rate is effective for the entire salary paid by the employer with the first
53.12payroll cycle reported.

53.13    Sec. 20. Minnesota Statutes 2012, section 354A.12, subdivision 2, is amended to read:
53.14    Subd. 2. Retirement contribution levy disallowed. Except as provided in
53.15section 423A.02, subdivision 3, with respect to Independent School District No. 625,
53.16notwithstanding any law to the contrary, levies for the St. Paul Teachers Retirement Fund
53.17associations in the cities of Duluth and St. Paul Association, including levies for any
53.18employer Social Security taxes for teachers covered by the Duluth Teachers Retirement
53.19Fund Association or the St. Paul Teachers Retirement Fund Association, are disallowed.

53.20    Sec. 21. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 2a,
53.21is amended to read:
53.22    Subd. 2a. Employer regular and additional contributions. (a) The employing
53.23units shall make the following employer contributions to the teachers retirement fund
53.24associations association:
53.25(1) for any coordinated member of one of the following St. Paul Teachers
53.26Retirement Fund associations in a city of the first class Association, the employing unit
53.27shall make a regular employer contribution to the respective retirement fund association in
53.28an amount equal to the designated percentage of the salary of the coordinated member
53.29as provided below:

53.30	Duluth Teachers Retirement Fund Association
53.31		before July 1, 2013	6.79 percent
53.32		effective July 1, 2013	7.29 percent
53.33		effective July 1, 2014	7.50 percent
53.34	St. Paul Teachers Retirement Fund Association
53.35		after June 30, 2012	5.0 percent
54.1		after June 30, 2013	5.25 percent
54.2		after June 30, 2014	5.5 percent
54.3		after June 30, 2015	6.0 percent
54.4		after June 30, 2016	6.25 percent
54.5		after June 30, 2017	6.5 percent

54.6(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the
54.7employing unit shall make a regular employer contribution to the respective retirement
54.8fund in an amount according to the schedule below:

54.9		after June 30, 2012	8.5 percent of salary
54.10		after June 30, 2013	8.75 percent of salary
54.11		after June 30, 2014	9.0 percent of salary
54.12		after June 30, 2015	9.5 percent of salary
54.13		after June 30, 2016	9.75 percent of salary
54.14		after June 30, 2017	10.0 percent of salary

54.15(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the
54.16employing unit shall make an additional employer contribution to the respective fund in
54.17an amount equal to 3.64 percent of the salary of the basic member;
54.18(4) for a coordinated member of the St. Paul Teachers Retirement Fund Association,
54.19the employing unit shall make an additional employer contribution to the respective fund
54.20in an amount equal to the applicable percentage 3.84 percent of the coordinated member's
54.21salary, as provided below:.

54.22

St. Paul Teachers Retirement Fund Association

3.84 percent

54.23(b) The regular and additional employer contributions must be remitted directly to
54.24the respective St. Paul Teachers Retirement Fund Association at least once each month.
54.25Delinquent amounts are payable with interest under the procedure in subdivision 1a.
54.26(c) Payments of regular and additional employer contributions for school district
54.27or technical college employees who are paid from normal operating funds must be made
54.28from the appropriate fund of the district or technical college.
54.29(d) When an employer contribution rate changes for a fiscal year, the new
54.30contribution rate is effective for the entire salary paid by the employer with the first
54.31payroll cycle reported.

54.32    Sec. 22. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 3a,
54.33is amended to read:
54.34    Subd. 3a. Special direct state aid to first class city teachers retirement fund
54.35associations. (a) The state shall pay $346,000 as special direct state aid to the Duluth
55.1Teachers Retirement Fund Association and $2,827,000 to the St. Paul Teachers Retirement
55.2Fund Association.
55.3    (b) The aids aid under this subdivision are payable October 1 annually. The
55.4commissioner of management and budget shall pay the aids specified in this subdivision.
55.5The amounts required are appropriated annually from the general fund to the commissioner
55.6of management and budget.

55.7    Sec. 23. Minnesota Statutes 2012, section 354A.31, subdivision 1, is amended to read:
55.8    Subdivision 1. Age and service requirements. Any coordinated member or former
55.9coordinated member of the Duluth Teachers Retirement Fund Association or of the St.
55.10Paul Teachers Retirement Fund Association who has ceased to render teaching service for
55.11the Independent School District in which the teachers retirement fund association exists
55.12 No. 625, who is vested and who has either attained the age of at least 55 years or received
55.13credit for not less than 30 years of allowable service regardless of age, shall be is entitled
55.14upon written application to a retirement annuity.

55.15    Sec. 24. Minnesota Statutes 2012, section 354A.32, subdivision 1, is amended to read:
55.16    Subdivision 1. Optional forms generally. The board of the St. Paul Teachers
55.17Retirement Fund Association shall establish for the coordinated program and the board
55.18of the Duluth Teachers Retirement Fund Association shall establish for the new law
55.19coordinated program an optional retirement annuity which shall must take the form of
55.20a joint and survivor annuity. Each The board may also, in its discretion, establish an
55.21optional annuity which shall may take the form of an annuity payable for a period certain
55.22and for life thereafter. Each The board shall also establish an optional retirement annuity
55.23that guarantees payment of the balance of the annuity recipient's accumulated deductions
55.24to a designated beneficiary upon the death of the annuity recipient. Except as provided in
55.25subdivision 1a, the optional annuity forms shall must be the actuarial equivalent of the
55.26normal forms provided in section 354A.31. In establishing these optional annuity forms,
55.27the board shall obtain the written recommendation of the actuary retained under section
55.28356.214 . The recommendation shall must be a part of the permanent records of the board.

55.29    Sec. 25. Minnesota Statutes 2012, section 354A.35, subdivision 1, is amended to read:
55.30    Subdivision 1. Death before retirement; refund. If a coordinated member or
55.31former coordinated member dies prior to before retirement or prior to before the receipt
55.32of any retirement annuity or other benefit payment which is or may be payable and a
55.33surviving spouse optional annuity is not payable pursuant to under subdivision 2, a
56.1refund shall must be paid to the person's surviving spouse, or if there is none, to the
56.2person's designated beneficiary, or if there is none, to the legal representative of the
56.3person's estate. For a coordinated member or former coordinated member of the St. Paul
56.4Teachers Retirement Fund Association, the refund shall must be in an amount equal to the
56.5person's accumulated employee contributions plus interest at the rate of six percent per
56.6annum compounded annually. For a coordinated member or former coordinated member
56.7of the Duluth Teachers Retirement Fund Association, the refund shall be in an amount
56.8equal to the person's accumulated employee contributions plus interest at the rate of six
56.9percent per annum compounded annually to July 1, 2010, and four percent per annum
56.10compounded annually thereafter.

56.11    Sec. 26. Minnesota Statutes 2012, section 354A.37, subdivision 3, is amended to read:
56.12    Subd. 3. Computation of refund amount. A former coordinated member who
56.13qualifies for a refund under subdivision 1 shall is entitled to receive a refund equal to the
56.14amount of the former coordinated member's accumulated employee contributions with
56.15interest at the rate of six percent per annum compounded annually to July 1, 2010, if the
56.16person is a former member of the Duluth Teachers Retirement Fund Association, or to
56.17 July 1, 2011, if the person is a former member of the St. Paul Teachers Retirement Fund
56.18Association, and four percent per annum compounded annually thereafter.

56.19    Sec. 27. Minnesota Statutes 2012, section 354A.37, subdivision 4, is amended to read:
56.20    Subd. 4. Certain refunds at normal retirement age. Any coordinated member
56.21who has attained the normal retirement age with less than ten years of allowable service
56.22credit and has terminated active teaching service shall be is entitled to a refund in lieu of a
56.23proportionate annuity under section 356.32. The refund must be equal to the coordinated
56.24member's accumulated employee contributions plus interest at the rate of six percent
56.25compounded annually to July 1, 2010, if the person is a former member of the Duluth
56.26Teachers Retirement Fund Association, or to July 1, 2011, if the person is a former
56.27member of the St. Paul Teachers Retirement Fund Association, and four percent per
56.28annum compounded annually thereafter.

56.29    Sec. 28. Minnesota Statutes 2012, section 354A.39, is amended to read:
56.30354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.
56.31Any person who has been a member of the Minnesota State Retirement System, the
56.32Public Employees Retirement Association including the Public Employees Retirement
56.33Association Police and Fire Fund, the Teachers Retirement Association, the Minnesota
57.1State Patrol Retirement Association, the legislators retirement plan, the constitutional
57.2officers retirement plan, the Duluth Teachers Retirement Fund Association new law
57.3coordinated program, the St. Paul Teachers Retirement Fund Association coordinated
57.4program, or any other public employee retirement system in the state of Minnesota
57.5having a like provision, but excluding all other funds providing retirement benefits for
57.6police officers or firefighters, is entitled, when qualified, to an annuity from each fund if
57.7the person's total allowable service in all of the funds or in any two or more of the funds
57.8totals three or more years, provided that no portion of the allowable service upon which
57.9the retirement annuity from one fund is based is used again in the computation for a
57.10retirement annuity from another fund and provided further that the person has not taken a
57.11refund from any of funds or associations since the person's membership in the fund or
57.12association has terminated. The annuity from each fund or association must be determined
57.13by the appropriate provisions of the law governing each fund or association, except that
57.14the requirement that a person must have at least three years of allowable service in the
57.15respective fund or association does not apply for the purposes of this section, provided
57.16that the aggregate service in two or more of these funds equals three or more years.

57.17    Sec. 29. Minnesota Statutes 2012, section 354A.41, is amended to read:
57.18354A.41 ADMINISTRATION OF COORDINATED PROGRAM.
57.19    Subdivision 1. Administrative provisions. The provisions of the articles of
57.20incorporation and bylaws of the St. Paul Teachers Retirement Fund Association relating
57.21to the administration of the fund shall govern the administration of the coordinated and
57.22basic programs and the provisions of the articles of incorporation and bylaws of the
57.23Duluth Teachers Retirement Fund Association relating to the administration of the fund
57.24shall govern the administration of the new law coordinated program in instances where the
57.25administrative provisions are not inconsistent with the provisions of sections 354A.31 to
57.26354A.41 , including but not limited to provisions relating to the composition and function
57.27of the board of trustees, the investment of assets of the St. Paul Teachers Retirement Fund
57.28Association, and the definition of the plan year. The administrative provisions in the
57.29articles of incorporation and the bylaws of the Minneapolis Teachers Retirement Fund
57.30Association pertaining to the granting of pension benefits of the basic and coordinated
57.31programs are no longer in effect after June 30, 2006, and the administrative provisions of
57.32the Duluth Teachers Retirement Fund Association pertaining to retirement benefits of the
57.33old law coordinated program are no longer in effect after June 30, 2015.
57.34    Subd. 2. Actuarial valuations. In any actuarial valuation of the St. Paul Teachers
57.35Retirement Fund Association, or the Duluth Teachers Retirement Fund Association under
58.1section 356.215 prepared by the actuary retained under section 356.214 or supplemental
58.2actuarial valuation prepared by an approved actuary retained by the St. Paul Teachers
58.3Retirement Fund Association, there shall must be included a finding of the condition of the
58.4fund showing separately the basic and coordinated programs or the old law coordinated
58.5and new law coordinated programs, as appropriate. The finding shall must include the level
58.6normal cost and the applicable employee and employer contribution rates for each program.

58.7    Sec. 30. Minnesota Statutes 2012, section 354B.21, subdivision 3a, is amended to read:
58.8    Subd. 3a. Plan coverage and election; certain past service technical college
58.9faculty. (a) Notwithstanding subdivision 3, if an employee of the board was employed in
58.10a faculty position in a technical college on June 30, 1997, with coverage by the Teachers
58.11Retirement Association, the employee retains that coverage. If the employee was a
58.12technical college faculty member on June 30, 1995, covered by a first class city teacher
58.13retirement fund established under chapter 354A, the retirement coverage continues with
58.14the Duluth Teachers Retirement Fund Association or the St. Paul Teachers Retirement
58.15Fund Association, whichever is applicable. If the person was a technical college faculty
58.16member on June 30, 1995, covered by the former Minneapolis Teachers Retirement Fund
58.17Association or the former Duluth Teachers Retirement Fund Association, the Teachers
58.18Retirement Association shall provide coverage.
58.19(b) An employee under paragraph (a) who has coverage by a first class city
58.20teacher the St. Paul Teachers Retirement Fund Association retains that coverage for the
58.21duration of the person's employment by the board unless, within one year of a change in
58.22employment within the Minnesota State Colleges and Universities system, the person
58.23elects the individual retirement account plan for all future employment by the board.
58.24The election is irrevocable.

58.25    Sec. 31. Minnesota Statutes 2012, section 355.01, subdivision 2c, is amended to read:
58.26    Subd. 2c. Duluth teacher. "Duluth teacher" means a person employed by
58.27Independent School District No. 709, Duluth, who holds a position covered by the Duluth
58.28 Teachers Retirement Fund Association established under chapter 354A section 354.73
58.29and section 46.

58.30    Sec. 32. Minnesota Statutes 2013 Supplement, section 356.20, subdivision 2, is
58.31amended to read:
58.32    Subd. 2. Covered public pension plans and funds. This section applies to the
58.33following public pension plans:
59.1    (1) the general state employees retirement plan of the Minnesota State Retirement
59.2System;
59.3    (2) the general employees retirement plan of the Public Employees Retirement
59.4Association;
59.5    (3) the Teachers Retirement Association;
59.6    (4) the State Patrol retirement plan;
59.7    (5) the St. Paul Teachers Retirement Fund Association;
59.8    (6) the Duluth Teachers Retirement Fund Association;
59.9    (7) (6) the University of Minnesota faculty retirement plan;
59.10    (8) (7) the University of Minnesota faculty supplemental retirement plan;
59.11    (9) (8) the judges retirement fund;
59.12    (10) (9) the Bloomington Fire Department Relief Association;
59.13    (11) (10) a volunteer firefighter relief association governed by section 424A.091;
59.14    (12) (11) the public employees police and fire plan of the Public Employees
59.15Retirement Association;
59.16    (13) (12) the correctional state employees retirement plan of the Minnesota State
59.17Retirement System;
59.18    (14) (13) the local government correctional service retirement plan of the Public
59.19Employees Retirement Association; and
59.20(15) (14) the voluntary statewide lump-sum volunteer firefighter retirement plan.

59.21    Sec. 33. Minnesota Statutes 2013 Supplement, section 356.214, subdivision 1, is
59.22amended to read:
59.23    Subdivision 1. Actuary retention. (a) The governing board or managing or
59.24administrative official of each public pension plan and retirement fund or plan enumerated
59.25in paragraph (b) shall contract with an established actuarial consulting firm to conduct
59.26annual actuarial valuations and related services. The principal from the actuarial
59.27consulting firm on the contract must be an approved actuary under section 356.215,
59.28subdivision 1 , paragraph (c).
59.29    (b) Actuarial services must include the preparation of actuarial valuations and
59.30related actuarial work for the following retirement plans:
59.31    (1) the teachers retirement plan, Teachers Retirement Association;
59.32    (2) the general state employees retirement plan, Minnesota State Retirement System;
59.33    (3) the correctional employees retirement plan, Minnesota State Retirement System;
59.34    (4) the State Patrol retirement plan, Minnesota State Retirement System;
59.35    (5) the judges retirement plan, Minnesota State Retirement System;
60.1    (6) the general employees retirement plan, Public Employees Retirement
60.2Association, including the MERF division;
60.3    (7) the public employees police and fire plan, Public Employees Retirement
60.4Association;
60.5    (8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund
60.6Association;
60.7    (9) (8) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund
60.8Association;
60.9    (10) (9) the legislators retirement plan, Minnesota State Retirement System; and
60.10    (11) (10) the local government correctional service retirement plan, Public
60.11Employees Retirement Association.
60.12(c) The actuarial valuation for the legislators retirement plan must include a separate
60.13calculation of total plan actuarial accrued liabilities due to constitutional officer coverage
60.14under section 3A.17.
60.15    (d) The contracts must require completion of the annual actuarial valuation
60.16calculations on a fiscal year basis, with the contents of the actuarial valuation calculations
60.17as specified in section 356.215, and in conformity with the standards for actuarial work
60.18adopted by the Legislative Commission on Pensions and Retirement.
60.19    The contracts must require completion of annual experience data collection and
60.20processing and a quadrennial published experience study for the plans listed in paragraph
60.21(b), clauses (1), (2), and (6), as provided for in the standards for actuarial work adopted by
60.22the commission. The experience data collection, processing, and analysis must evaluate
60.23the following:
60.24    (1) individual salary progression;
60.25    (2) the rate of return on investments based on the current asset value;
60.26    (3) payroll growth;
60.27    (4) mortality;
60.28    (5) retirement age;
60.29    (6) withdrawal; and
60.30    (7) disablement.
60.31    (e) The actuary shall annually prepare a report to the governing or managing board
60.32or administrative official and the legislature, summarizing the results of the actuarial
60.33valuation calculations. The actuary shall include with the report any recommendations
60.34concerning the appropriateness of the support rates to achieve proper funding of
60.35the retirement plans by the required funding dates. The actuary shall, as part of the
61.1quadrennial experience study, include recommendations on the appropriateness of the
61.2actuarial valuation assumptions required for evaluation in the study.
61.3    (f) If the actuarial gain and loss analysis in the actuarial valuation calculations
61.4indicates a persistent pattern of sizable gains or losses, the governing or managing board
61.5or administrative official shall direct the actuary to prepare a special experience study for a
61.6plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), or (10), or (11), in the manner
61.7provided for in the standards for actuarial work adopted by the commission.

61.8    Sec. 34. Minnesota Statutes 2013 Supplement, section 356.215, subdivision 8, is
61.9amended to read:
61.10    Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
61.11the applicable following preretirement interest assumption and the applicable following
61.12postretirement interest assumption:
61.13(1) select and ultimate interest rate assumption

61.14 61.15 61.16 61.17	plan	ultimate preretirement interest rate assumption	ultimate postretirement interest rate assumption
61.18	general state employees retirement plan	8.5%	6.0%
61.19	correctional state employees retirement plan	8.5	6.0
61.20	State Patrol retirement plan	8.5	6.0
61.21 61.22 61.23	legislators retirement plan, and for the constitutional officers calculation of total plan liabilities	0.0	0.0
61.24	judges retirement plan	8.5	6.0
61.25	general public employees retirement plan	8.5	6.0
61.26	public employees police and fire retirement plan	8.5	6.0
61.27 61.28	local government correctional service retirement plan	8.5	6.0
61.29	teachers retirement plan	8.5	6.0
61.30	Duluth teachers retirement plan	8.5	8.5
61.31	St. Paul teachers retirement plan	8.5	8.5

61.32Except for the legislators retirement plan and the constitutional officers calculation
61.33of total plan liabilities, the select preretirement interest rate assumption for the period
61.34after June 30, 2012, through June 30, 2017, is 8.0 percent. Except for the legislators
61.35retirement plan and the constitutional officers calculation of total plan liabilities, the select
61.36postretirement interest rate assumption for the period after June 30, 2012, through June
61.3730, 2017, is 5.5 percent, except for the Duluth teachers retirement plan and the St. Paul
61.38teachers retirement plan, each with a select postretirement interest rate assumption for the
61.39period after June 30, 2012, through June 30, 2017, of 8.0 percent.
62.1(2) single rate preretirement and postretirement interest rate assumption

62.2 62.3	plan	interest rate assumption
62.4	Bloomington Fire Department Relief Association	6.0
62.5 62.6	local monthly benefit volunteer firefighters relief associations	5.0

62.7    (b) The actuarial valuation must use the applicable following single rate future salary
62.8increase assumption, the applicable following modified single rate future salary increase
62.9assumption, or the applicable following graded rate future salary increase assumption:
62.10    (1) single rate future salary increase assumption

62.11	plan	future salary increase assumption
62.12	legislators retirement plan		5.0%
62.13	judges retirement plan		3.0
62.14 62.15	Bloomington Fire Department Relief Association		4.0

62.16    (2) age-related future salary increase age-related select and ultimate future salary
62.17increase assumption or graded rate future salary increase assumption

62.18	plan	future salary increase assumption
62.19	local government correctional service retirement plan	assumption CB
62.20	Duluth teachers retirement plan	assumption A
62.21	St. Paul teachers retirement plan	assumption BA

62.22For plans other than the Duluth St. Paul
62.23teachers retirement plan and the local
62.24government correctional service retirement
62.25plan, the select calculation is: during the
62.26designated select period, a designated
62.27percentage rate is multiplied by the result of
62.28the designated integer minus T, where T is the
62.29number of completed years of service, and is
62.30added to the applicable future salary increase
62.31assumption. The designated select period is
62.32ten years and the designated integer is ten
62.33for the Duluth Teachers Retirement Fund
62.34Association and for the local government
62.35correctional service retirement plan and 15
62.36for the St. Paul Teachers Retirement Fund
62.37Association. The designated percentage
63.1rate is 0.2 percent for the St. Paul Teachers
63.2Retirement Fund Association. The select
63.3calculation for the Duluth Teachers
63.4Retirement Fund Association is 8.00 percent
63.5per year for service years one through seven,
63.67.25 percent per year for service years seven
63.7and eight, and 6.50 percent per year for
63.8service years eight and nine.
63.9    The ultimate future salary increase assumption is:

63.10	age	A	BA	CB
63.11	16	6.00%	5.90%	9.00%
63.12	17	6.00	5.90	9.00
63.13	18	6.00	5.90	9.00
63.14	19	6.00	5.90	9.00
63.15	20	6.00	5.90	9.00
63.16	21	6.00	5.90	8.75
63.17	22	6.00	5.90	8.50
63.18	23	6.00	5.85	8.25
63.19	24	6.00	5.80	8.00
63.20	25	6.00	5.75	7.75
63.21	26	6.00	5.70	7.50
63.22	27	6.00	5.65	7.25
63.23	28	6.00	5.60	7.00
63.24	29	6.00	5.55	6.75
63.25	30	6.00	5.50	6.75
63.26	31	6.00	5.45	6.50
63.27	32	6.00	5.40	6.50
63.28	33	6.00	5.35	6.50
63.29	34	6.00	5.30	6.25
63.30	35	6.00	5.25	6.25
63.31	36	5.86	5.20	6.00
63.32	37	5.73	5.15	6.00
63.33	38	5.59	5.10	6.00
63.34	39	5.45	5.05	5.75
63.35	40	5.31	5.00	5.75
63.36	41	5.18	4.95	5.75
63.37	42	5.04	4.90	5.50
63.38	43	4.90	4.85	5.25
63.39	44	4.76	4.80	5.25
63.40	45	4.63	4.75	5.00
63.41	46	4.49	4.70	5.00
63.42	47	4.35	4.65	5.00
64.1	48	4.21	4.60	5.00
64.2	49	4.08	4.55	5.00
64.3	50	3.94	4.50	5.00
64.4	51	3.80	4.45	5.00
64.5	52	3.66	4.40	5.00
64.6	53	3.53	4.35	5.00
64.7	54	3.39	4.30	5.00
64.8	55	3.25	4.25	4.75
64.9	56	3.25	4.20	4.75
64.10	57	3.25	4.15	4.50
64.11	58	3.25	4.10	4.25
64.12	59	3.25	4.05	4.25
64.13	60	3.25	4.00	4.25
64.14	61	3.25	4.00	4.25
64.15	62	3.25	4.00	4.25
64.16	63	3.25	4.00	4.25
64.17	64	3.25	4.00	4.25
64.18	65	3.25	4.00	4.00
64.19	66	3.25	4.00	4.00
64.20	67	3.25	4.00	4.00
64.21	68	3.25	4.00	4.00
64.22	69	3.25	4.00	4.00
64.23	70	3.25	4.00	4.00

64.24(3) service-related ultimate future salary increase assumption

64.25 64.26	general state employees retirement plan of the Minnesota State Retirement System	assumption A
64.27 64.28	general employees retirement plan of the Public Employees Retirement Association	assumption B
64.29	Teachers Retirement Association	assumption C
64.30	public employees police and fire retirement plan	assumption D
64.31	State Patrol retirement plan	assumption E
64.32 64.33	correctional state employees retirement plan of the Minnesota State Retirement System	assumption F

64.34 64.35	service length	A	B	C	D	E	F
64.36	1	10.50%	12.03%	12.00%	13.00%	8.00%	6.00%
64.37	2	8.10	8.90	9.00	11.00	7.50	5.85
64.38	3	6.90	7.46	8.00	9.00	7.00	5.70
64.39	4	6.20	6.58	7.50	8.00	6.75	5.55
64.40	5	5.70	5.97	7.25	6.50	6.50	5.40
64.41	6	5.30	5.52	7.00	6.10	6.25	5.25
64.42	7	5.00	5.16	6.85	5.80	6.00	5.10
64.43	8	4.70	4.87	6.70	5.60	5.85	4.95
65.1	9	4.50	4.63	6.55	5.40	5.70	4.80
65.2	10	4.40	4.42	6.40	5.30	5.55	4.65
65.3	11	4.20	4.24	6.25	5.20	5.40	4.55
65.4	12	4.10	4.08	6.00	5.10	5.25	4.45
65.5	13	4.00	3.94	5.75	5.00	5.10	4.35
65.6	14	3.80	3.82	5.50	4.90	4.95	4.25
65.7	15	3.70	3.70	5.25	4.80	4.80	4.15
65.8	16	3.60	3.60	5.00	4.80	4.65	4.05
65.9	17	3.50	3.51	4.75	4.80	4.50	3.95
65.10	18	3.50	3.50	4.50	4.80	4.35	3.85
65.11	19	3.50	3.50	4.25	4.80	4.20	3.75
65.12	20	3.50	3.50	4.00	4.80	4.05	3.75
65.13	21	3.50	3.50	3.90	4.70	4.00	3.75
65.14	22	3.50	3.50	3.80	4.60	4.00	3.75
65.15	23	3.50	3.50	3.70	4.50	4.00	3.75
65.16	24	3.50	3.50	3.60	4.50	4.00	3.75
65.17	25	3.50	3.50	3.50	4.50	4.00	3.75
65.18	26	3.50	3.50	3.50	4.50	4.00	3.75
65.19	27	3.50	3.50	3.50	4.50	4.00	3.75
65.20	28	3.50	3.50	3.50	4.50	4.00	3.75
65.21	29	3.50	3.50	3.50	4.50	4.00	3.75
65.22	30 or more	3.50	3.50	3.50	4.50	4.00	3.75

65.23    (c) The actuarial valuation must use the applicable following payroll growth
65.24assumption for calculating the amortization requirement for the unfunded actuarial
65.25accrued liability where the amortization retirement is calculated as a level percentage
65.26of an increasing payroll:

65.27	plan	payroll growth assumption
65.28 65.29	general state employees retirement plan of the Minnesota State Retirement System	3.75%
65.30	correctional state employees retirement plan	3.75
65.31	State Patrol retirement plan	3.75
65.32	judges retirement plan	3.00
65.33 65.34	general employees retirement plan of the Public Employees Retirement Association	3.75
65.35	public employees police and fire retirement plan	3.75
65.36	local government correctional service retirement plan	3.75
65.37	teachers retirement plan	3.75
65.38	Duluth teachers retirement plan	3.50
65.39	St. Paul teachers retirement plan	4.00

65.40    (d) The assumptions set forth in paragraphs (b) and (c) continue to apply, unless a
65.41different salary assumption or a different payroll increase assumption:
65.42    (1) has been proposed by the governing board of the applicable retirement plan;
66.1    (2) is accompanied by the concurring recommendation of the actuary retained under
66.2section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the
66.3most recent actuarial valuation report if section 356.214 does not apply; and
66.4    (3) has been approved or deemed approved under subdivision 18.

66.5    Sec. 35. Minnesota Statutes 2013 Supplement, section 356.219, subdivision 8, is
66.6amended to read:
66.7    Subd. 8. Timing of reports. (a) For the Bloomington Fire Department Relief
66.8Association and the volunteer firefighter relief associations, the information required
66.9under this section must be submitted by the due date for reports required under section
66.1069.051, subdivision 1 or 1a, as applicable. If a relief association satisfies the definition of
66.11a fully invested plan under subdivision 1, paragraph (b), for the calendar year covered
66.12by the report required under section 69.051, subdivision 1 or 1a, as applicable, the chief
66.13administrative officer of the covered pension plan shall certify that compliance on a form
66.14prescribed by the state auditor. The state auditor shall transmit annually to the State Board
66.15of Investment a list or lists of covered pension plans which submitted certifications in
66.16order to facilitate reporting by the State Board of Investment under paragraph (c).
66.17(b) For the St. Paul Teachers Retirement Fund Association, the Duluth Teachers
66.18Retirement Fund Association, and the University of Minnesota faculty supplemental
66.19retirement plan, the information required under this section must be submitted to the state
66.20auditor by June 1 of each year.
66.21(c) The State Board of Investment, on behalf of pension funds specified in
66.22subdivision 1, paragraph (c), must shall report information required under this section by
66.23September 1 of each year.

66.24    Sec. 36. Minnesota Statutes 2013 Supplement, section 356.30, subdivision 3, is
66.25amended to read:
66.26    Subd. 3. Covered plans. This section applies to the following retirement plans:
66.27(1) the general state employees retirement plan of the Minnesota State Retirement
66.28System, established under chapter 352;
66.29(2) the correctional state employees retirement plan of the Minnesota State
66.30Retirement System, established under chapter 352;
66.31(3) the unclassified employees retirement program, established under chapter 352D;
66.32(4) the State Patrol retirement plan, established under chapter 352B;
66.33(5) the legislators retirement plan, established under chapter 3A, including
66.34constitutional officers as specified in that chapter;
67.1(6) the general employees retirement plan of the Public Employees Retirement
67.2Association, established under chapter 353, including the MERF division of the Public
67.3Employees Retirement Association;
67.4(7) the public employees police and fire retirement plan of the Public Employees
67.5Retirement Association, established under chapter 353;
67.6(8) the local government correctional service retirement plan of the Public
67.7Employees Retirement Association, established under chapter 353E;
67.8(9) the Teachers Retirement Association, established under chapter 354;
67.9(10) the St. Paul Teachers Retirement Fund Association, established under chapter
67.10354A; and
67.11(11) the Duluth Teachers Retirement Fund Association, established under chapter
67.12354A; and
67.13(12) (11) the judges retirement fund, established by chapter 490.

67.14    Sec. 37. Minnesota Statutes 2012, section 356.302, subdivision 7, is amended to read:
67.15    Subd. 7. Covered retirement plans. This section applies to the following
67.16retirement plans:
67.17(1) the general state employees retirement plan of the Minnesota State Retirement
67.18System, established by chapter 352;
67.19(2) the unclassified state employees retirement program of the Minnesota State
67.20Retirement System, established by chapter 352D;
67.21(3) the general employees retirement plan of the Public Employees Retirement
67.22Association, established by chapter 353, including the MERF division of the Public
67.23Employees Retirement Association;
67.24(4) the Teachers Retirement Association, established by chapter 354;
67.25(5) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
67.26(6) (5) the St. Paul Teachers Retirement Fund Association, established by chapter
67.27354A;
67.28(7) (6) the state correctional employees retirement plan of the Minnesota State
67.29Retirement System, established by chapter 352;
67.30(8) (7) the State Patrol retirement plan, established by chapter 352B;
67.31(9) (8) the public employees police and fire plan of the Public Employees Retirement
67.32Association, established by chapter 353;
67.33(10) (9) the local government correctional service retirement plan of the Public
67.34Employees Retirement Association, established by chapter 353E; and
67.35(11) (10) the judges retirement plan, established by chapter 490.

68.1    Sec. 38. Minnesota Statutes 2012, section 356.303, subdivision 4, is amended to read:
68.2    Subd. 4. Covered retirement plans. This section applies to the following
68.3retirement plans:
68.4(1) the legislators retirement plan, established by chapter 3A;
68.5(2) the general state employees retirement plan of the Minnesota State Retirement
68.6System, established by chapter 352;
68.7(3) the correctional state employees retirement plan of the Minnesota State
68.8Retirement System, established by chapter 352;
68.9(4) the State Patrol retirement plan, established by chapter 352B;
68.10(5) the elective state officers retirement plan, established by chapter 352C;
68.11(6) the unclassified state employees retirement program, established by chapter 352D;
68.12(7) the general employees retirement plan of the Public Employees Retirement
68.13Association, established by chapter 353, including the MERF division of the Public
68.14Employees Retirement Association;
68.15(8) the public employees police and fire plan of the Public Employees Retirement
68.16Association, established by chapter 353;
68.17(9) the local government correctional service retirement plan of the Public
68.18Employees Retirement Association, established by chapter 353E;
68.19(10) the Teachers Retirement Association, established by chapter 354;
68.20(11) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
68.21(12) (11) the St. Paul Teachers Retirement Fund Association, established by chapter
68.22354A; and
68.23(13) (12) the judges retirement fund, established by chapter 490.

68.24    Sec. 39. Minnesota Statutes 2012, section 356.32, subdivision 2, is amended to read:
68.25    Subd. 2. Covered retirement plans. The provisions of this section apply to the
68.26following retirement plans:
68.27(1) the general state employees retirement plan of the Minnesota State Retirement
68.28System, established under chapter 352;
68.29(2) the correctional state employees retirement plan of the Minnesota State
68.30Retirement System, established under chapter 352;
68.31(3) the State Patrol retirement plan, established under chapter 352B;
68.32(4) the general employees retirement plan of the Public Employees Retirement
68.33Association, established under chapter 353, including the MERF division of the Public
68.34Employees Retirement Association;
69.1(5) the public employees police and fire plan of the Public Employees Retirement
69.2Association, established under chapter 353;
69.3(6) the Teachers Retirement Association, established under chapter 354; and
69.4(7) the Duluth Teachers Retirement Fund Association, established under chapter
69.5354A; and
69.6(8) (7) the St. Paul Teachers Retirement Fund Association, established under chapter
69.7354A.

69.8    Sec. 40. Minnesota Statutes 2013 Supplement, section 356.401, subdivision 3, is
69.9amended to read:
69.10    Subd. 3. Covered retirement plans. The provisions of this section apply to the
69.11following retirement plans:
69.12(1) the legislators retirement plan, established by chapter 3A, including constitutional
69.13officers as specified in that chapter;
69.14(2) the general state employees retirement plan of the Minnesota State Retirement
69.15System, established by chapter 352;
69.16(3) the correctional state employees retirement plan of the Minnesota State
69.17Retirement System, established by chapter 352;
69.18(4) the State Patrol retirement plan, established by chapter 352B;
69.19(5) the unclassified state employees retirement program, established by chapter 352D;
69.20(6) the general employees retirement plan of the Public Employees Retirement
69.21Association, established by chapter 353, including the MERF division of the Public
69.22Employees Retirement Association;
69.23(7) the public employees police and fire plan of the Public Employees Retirement
69.24Association, established by chapter 353;
69.25(8) the public employees defined contribution plan, established by chapter 353D;
69.26(9) the local government correctional service retirement plan of the Public
69.27Employees Retirement Association, established by chapter 353E;
69.28(10) the voluntary statewide lump-sum volunteer firefighter retirement plan,
69.29established by chapter 353G;
69.30(11) the Teachers Retirement Association, established by chapter 354;
69.31(12) the Duluth Teachers Retirement Fund Association, established by chapter 354A;
69.32(13) (12) the St. Paul Teachers Retirement Fund Association, established by chapter
69.33354A;
69.34(14) (13) the individual retirement account plan, established by chapter 354B;
70.1(15) (14) the higher education supplemental retirement plan, established by chapter
70.2354C; and
70.3(16) (15) the judges retirement fund, established by chapter 490.

70.4    Sec. 41. Minnesota Statutes 2012, section 356.42, subdivision 3, is amended to read:
70.5    Subd. 3. Covered retirement plans. The postretirement adjustment provided in
70.6this section applies to the following retirement funds:
70.7(1) the general employees retirement plans of the Public Employees Retirement
70.8Association;
70.9(2) the public employees police and fire plan of the Public Employees Retirement
70.10Association;
70.11(3) the teachers retirement association;
70.12(4) the State Patrol retirement plan;
70.13(5) the state employees retirement plan of the Minnesota State Retirement System;
70.14 and
70.15(6) the St. Paul Teachers Retirement Fund Association established under chapter
70.16354A; and.
70.17(7) the Duluth Teachers Retirement Fund Association established under chapter
70.18354A.

70.19    Sec. 42. Minnesota Statutes 2012, section 356.465, subdivision 3, is amended to read:
70.20    Subd. 3. Covered retirement plans. The provisions of this section apply to the
70.21following retirement plans:
70.22(1) the general state employees retirement plan of the Minnesota State Retirement
70.23System established under chapter 352;
70.24(2) the correctional state employees retirement plan of the Minnesota State
70.25Retirement System established under chapter 352;
70.26(3) the State Patrol retirement plan established under chapter 352B;
70.27(4) the legislators retirement plan established under chapter 3A;
70.28(5) the judges retirement plan established under chapter 490;
70.29(6) the general employees retirement plan of the Public Employees Retirement
70.30Association established under chapter 353, including the MERF division of the Public
70.31Employees Retirement Association;
70.32(7) the public employees police and fire plan of the Public Employees Retirement
70.33Association established under chapter 353;
70.34(8) the teachers retirement plan established under chapter 354;
71.1(9) the Duluth Teachers Retirement Fund Association established under chapter
71.2354A;
71.3(10) (9) the St. Paul Teachers Retirement Fund Association established under
71.4chapter 354A; and
71.5(11) (10) the local government correctional service retirement plan of the Public
71.6Employees Retirement Association established under chapter 353E.

71.7    Sec. 43. Minnesota Statutes 2012, section 356.47, subdivision 3, is amended to read:
71.8    Subd. 3. Payment. (a) Beginning one year after the reemployment withholding
71.9period ends relating to the reemployment that gave rise to the limitation, and the filing of a
71.10written application, the retired member is entitled to the payment, in a lump sum, of the
71.11value of the person's amount under subdivision 2, plus annual compound interest. For the
71.12general state employees retirement plan, the correctional state employees retirement plan,
71.13the general employees retirement plan of the Public Employees Retirement Association,
71.14the public employees police and fire retirement plan, the local government correctional
71.15employees retirement plan, and the teachers retirement plan, the annual interest rate is
71.16six percent from the date on which the amount was deducted from the retirement annuity
71.17to the date of payment or until January 1, 2011, whichever is earlier, and no interest
71.18after January 1, 2011. For the Duluth Teachers Retirement Fund Association, the annual
71.19interest is six percent from the date on which the amount was deducted from the retirement
71.20annuity to the date of payment or until June 30, 2010, whichever is earlier, and with
71.21no interest accrual after June 30, 2010. For the St. Paul Teachers Retirement Fund
71.22Association, the annual interest is the rate of six percent from the date that the amount was
71.23deducted from the retirement annuity to the date of payment or June 30, 2011, whichever
71.24is earlier, and with no interest accrual after June 30, 2011.
71.25    (b) The written application must be on a form prescribed by the chief administrative
71.26officer of the applicable retirement plan.
71.27    (c) If the retired member dies before the payment provided for in paragraph (a) is
71.28made, the amount is payable, upon written application, to the deceased person's surviving
71.29spouse, or if none, to the deceased person's designated beneficiary, or if none, to the
71.30deceased person's estate.
71.31    (d) In lieu of the direct payment of the person's amount under subdivision 2, on
71.32or after the payment date under paragraph (a), if the federal Internal Revenue Code so
71.33permits, the retired member may elect to have all or any portion of the payment amount
71.34under this section paid in the form of a direct rollover to an eligible retirement plan as
71.35defined in section 402(c) of the federal Internal Revenue Code that is specified by the
72.1retired member. If the retired member dies with a balance remaining payable under this
72.2section, the surviving spouse of the retired member, or if none, the deceased person's
72.3designated beneficiary, or if none, the administrator of the deceased person's estate may
72.4elect a direct rollover under this paragraph.

72.5    Sec. 44. Minnesota Statutes 2012, section 356.99, subdivision 1, is amended to read:
72.6    Subdivision 1. Definitions. (a) For purposes of this section, the terms in paragraphs
72.7(b) to (e) have the meanings given them.
72.8(b) "Chief administrative officer" means the person selected or elected by the
72.9governing board of a covered pension plan with primary responsibility to administer the
72.10covered pension plan, or that person's designee or representative.
72.11(c) "Covered pension plan" means a plan enumerated in section 356.30, subdivision
72.123 , except clauses (3), (5), and (6).
72.13(d) "Governing board" means the governing board of the Minnesota State Retirement
72.14System, the Public Employees Retirement Association, the Teachers Retirement
72.15Association, the Duluth Teachers Retirement Fund Association, or the St. Paul Teachers
72.16Retirement Fund Association.
72.17(e) "Member" means an active plan member in a covered pension plan.

72.18    Sec. 45. Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3, is
72.19amended to read:
72.20    Subd. 3. Reallocation of amortization state aid. (a) Seventy percent of the
72.21difference between $5,720,000 and the current year amortization aid distributed under
72.22subdivision 1 that is not distributed for any reason to a municipality must be distributed
72.23by the commissioner of revenue according to this paragraph. The commissioner shall
72.24distribute 50 60 percent of the amounts derived under this paragraph to the Teachers
72.25Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association,
72.26 and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded
72.27actuarial accrued liabilities of the respective funds. These payments must be made on July
72.2815 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth
72.29Teachers Retirement Fund Association becomes fully funded, the association's eligibility
72.30for its portion of this aid ceases. Amounts remaining in the undistributed balance account
72.31at the end of the biennium if aid eligibility ceases cancel to the general fund.
72.32    (b) In order to receive amortization aid under paragraph (a), before June 30 annually
72.33Independent School District No. 625, St. Paul, must make an additional contribution of
72.34$800,000 each year to the St. Paul Teachers Retirement Fund Association.
73.1    (c) Thirty percent of the difference between $5,720,000 and the current year
73.2amortization aid under subdivision 1a that is not distributed for any reason to a
73.3municipality must be distributed under section 69.021, subdivision 7, paragraph (d), as
73.4additional funding to support a minimum fire state aid amount for volunteer firefighter
73.5relief associations.

73.6    Sec. 46. CONSOLIDATION OF THE DULUTH TEACHERS RETIREMENT
73.7FUND ASSOCIATION.
73.8    Subdivision 1. Membership transfer. All active, inactive, and retired members
73.9of the Duluth Teachers Retirement Fund Association are transferred to the Teachers
73.10Retirement Association and are no longer members of the Duluth Teachers Retirement
73.11Fund Association as of July 1, 2015.
73.12    Subd. 2. Teachers Retirement Association membership. A person first hired as a
73.13teacher by Independent School District No. 709, Duluth, after June 30, 2015, and who is a
73.14teacher as defined in Minnesota Statutes, section 354.05, subdivision 2, is a member of the
73.15Teachers Retirement Association for the person's subsequent teaching service.
73.16    Subd. 3. Service credit and liability transfer. All allowable service and salary
73.17credit of the members and other individuals transferred under subdivision 1 as specified
73.18in the records of the Duluth Teachers Retirement Fund Association as of June 30, 2015,
73.19is allowable service credit under Minnesota Statutes, section 354.05, subdivision 13,
73.20formula service credit under Minnesota Statutes, section 354.05, subdivision 25, and
73.21salary credit under Minnesota Statutes, section 354.05, subdivision 35, for the Teachers
73.22Retirement Association.
73.23    Subd. 4. Transfer of records. On or before June 30, 2015, the chief administrative
73.24officer of the Duluth Teachers Retirement Fund Association shall transfer all records and
73.25documents relating to the funds and the benefit plans of the association to the executive
73.26director of the Teachers Retirement Association. To the extent possible, original copies of
73.27all records and documents must be transferred.
73.28    Subd. 5. Transfer of assets. (a) On or before December 31, 2014, the chief
73.29administrative officer of the Duluth Teachers Retirement Fund Association shall transfer
73.30to the State Board of Investment for investment under Minnesota Statutes, section 11A.14,
73.31the entire assets of the special retirement fund, except for direct real estate holdings, of the
73.32Duluth Teachers Retirement Fund Association.
74.1(b) By August 1, 2014, the chief administrative officer of the Duluth Teachers
74.2Retirement Fund Association must provide to the State Board of Investment a list of
74.3assets that are intended to be transferred.
74.4(c) The executive director of the State Board of Investment shall review the assets
74.5and determine which assets are not in compliance with the requirements and limitations
74.6set forth in Minnesota Statutes, sections 11A.09, 11A.14, 11A.23 and 11A.24 or are not
74.7appropriate for retention under the established investment objectives of the State Board of
74.8Investment. Within 30 days of the date on which the asset transfer occurred, the executive
74.9director of the State Board of Investment shall provide the chief administrative officer of
74.10the Duluth Teachers Retirement Fund Association with a list of assets that are acceptable
74.11for transfer and a list of assets that are noncompliant or inappropriate. Acceptable assets,
74.12including cash, must be transferred at market value, and transfers may begin upon the
74.13transfer of legal title and notification by the chief administrative officer of the Duluth
74.14Teachers Retirement Fund Association to the State Board of Investment.
74.15(d) Assets deemed to be noncompliant or inappropriate must be retained by the
74.16Duluth Teachers Retirement Fund Association. Within 30 days of receipt of the list of
74.17noncompliant or inappropriate assets, the chief administrative officer of the Duluth
74.18Teachers Retirement Fund Association must provide the executive director of the State
74.19Board of Investment with evidence that the chief administrative officer of the Duluth
74.20Teachers Retirement Fund Association is taking action to convert noncompliant or
74.21inappropriate assets to acceptable assets.
74.22(e) Beginning January 1, 2015, the executive director of the State Board of
74.23Investment is authorized to direct the process of transferring legal title of assets for which
74.24such change is deemed necessary.
74.25(f) On June 30, 2015, the remaining assets of the special retirement fund of the
74.26Duluth Teachers Retirement Fund Association are transferred to the State Board of
74.27Investment at market values determined by the executive director of the State Board of
74.28Investment. Legal title to transferred assets vests with the State Board of Investment
74.29on behalf of the Teachers Retirement Association. The transfer of the assets of the
74.30Duluth Teachers Retirement Fund Association special retirement fund must include any
74.31investment related accounts receivable that are determined by the executive director
74.32of the State Board of Investment as reasonably capable of being collected and any
74.33non-investment related accounts receivable that are determined by the executive director
74.34of Teachers Retirement Association as reasonably capable of being collected. For accounts
74.35receivable that are determined as not reasonably capable of being collected, legal title to
74.36the account transfers to Independent School District No. 709, Duluth, as of the date of the
75.1determination of the executive director of the State Board of Investment and the executive
75.2director of Teachers Retirement Association. If the accounts receivable transferred to
75.3Independent School District No. 709, Duluth, are subsequently recovered by the school
75.4district, the superintendent of Independent School District No. 709, Duluth, shall transfer
75.5the recovered amount to the executive director of Teachers Retirement Association, in
75.6cash, for deposit in the teachers retirement fund, less the reasonable expenses of the school
75.7district related to the recovery. If the board of trustees of the Duluth Teachers Retirement
75.8Fund Association establishes a liquidating trust and deposits any of the retirement fund
75.9association assets in that trust or if the legislative auditor determines that the transferred
75.10assets were in an amount less than the full assets of the retirement fund association
75.11other than assets in the tax sheltered annuity program on the date of transfer as specified
75.12in paragraph (g), the amount of any untransferred assets are a claim against the state
75.13aid otherwise payable to Independent School District No. 709, Duluth, payable to the
75.14Teachers Retirement Association by the commissioner of management and budget upon
75.15request by the executive director of the Teachers Retirement Association.
75.16(g) As of June 30, 2015, assets of the special retirement fund, except for direct real
75.17estate holdings, of the Duluth Teachers Retirement Fund Association are assets of the
75.18Teachers Retirement Association to be invested by the State Board of Investment under
75.19Minnesota Statutes, section 354.07, subdivision 4.
75.20    Subd. 6. Termination of Duluth Teachers Retirement Fund Association special
75.21retirement fund. (a) As of June 30, 2015, the Duluth Teachers Retirement Fund
75.22Association as a public retirement plan and its special retirement fund ceases to exist.
75.23(b) Contracts, records, and obligations of the Duluth Teachers Retirement Fund
75.24Association special retirement fund existing at the time of consolidation with the Teachers
75.25Retirement Association are transferred to the Teachers Retirement Association under
75.26Minnesota Statutes, section 15.039, subdivisions 5 and 5a, except that contracts, records,
75.27and obligations of the Duluth Teachers Retirement Fund Association special retirement
75.28fund related to investment and safekeeping of assets are transferred to the State Board of
75.29Investment under the provisions of Minnesota Statutes, section 15.039, subdivisions 5
75.30and 5a. The State Board of Investment has the authority to pay the investment-related
75.31liabilities and obligations from the assets transferred from the Duluth Teachers Retirement
75.32Fund Association incurred by the Teachers Retirement Association. The legislative
75.33auditor shall audit the Duluth Teachers Retirement Fund Association for the fiscal year
75.34ending June 30, 2015, as part of the Teachers Retirement Association board's annual
75.35financial reporting requirements under Minnesota Statutes, section 356.20. The board of
75.36trustees of the Teachers Retirement Association may authorize and contract with either the
76.1legislative auditor or the state auditor to perform other audit services. Between April 1,
76.22015, and June 30, 2015, the Duluth Teachers Retirement Fund Association cannot incur a
76.3new or additional enforceable contractual liability or obligation without approval of the
76.4executive director of the Teachers Retirement Association.

76.5    Sec. 47. DULUTH TEACHERS RETIREMENT FUND ASSOCIATION
76.6EMPLOYEES.
76.7Effective June 30, 2015, the employees of the Duluth Teachers Retirement Fund
76.8Association have their employment with the Duluth Teachers Retirement Fund Association
76.9terminated and, effective July 1, 2015, unless the former employee elects otherwise,
76.10the Duluth Teachers Retirement Fund Association employees, excluding the Executive
76.11Director, become employees of the Teachers Retirement Association. The commissioner
76.12of Minnesota management and budget shall place employees from the former Duluth
76.13Teachers Retirement Fund Association into state service in their proper classifications,
76.14except that employees are appointed without examination and must be compensated at no
76.15less than their current hourly salary rate. Employees must have their accumulated, but
76.16unused, vacation leave balance as of June 30, 2015, posted to their credit by the Teachers
76.17Retirement Association, but if the employee has vacation time in excess of the applicable
76.18maximum, no additional vacation may accrue until the employee's balance falls below
76.19the maximum permitted by the state for the employee's position. The employees must
76.20receive length of service credit for vacation leave accrual for time served at the Duluth
76.21Teachers Retirement Fund Association. Duluth Teachers Retirement Fund Association
76.22employees who become employees of the Teachers Retirement Association effective on
76.23July 1, 2015, must be considered to have completed six months of continuous service
76.24for vacation use purposes. Employees of the former Duluth Teachers Retirement Fund
76.25Association appointed to the classified service are subject to a probationary period under
76.26the collective bargaining agreement or compensation plan applicable to the employee's
76.27position at the Teachers Retirement Association. Effective July 1, 2015, all transferred
76.28employees must be enrolled in the state employees' group insurance program as provided
76.29in Minnesota Statutes, sections 43A.22 to 43A.31, and the commissioner of Minnesota
76.30management and budget shall provide open enrollment in all state employee health and
76.31dental insurance plans with no limitation on preexisting conditions except as specified
76.32in existing state employee certificates of coverage. The commissioner of Minnesota
76.33management and budget shall provide these transferred employees with the opportunity to
76.34purchase optional life and disability insurance as provided by the state group insurance
76.35program in accordance with the policies of Minnesota management and budget.

77.1    Sec. 48. REVISOR'S INSTRUCTION.
77.2Upon receipt of the notice required under section 50, paragraph (b), Minnesota
77.3Statutes, section 354A.022, is repealed on the effective date of the consolidation of the
77.4Duluth Teachers Retirement Fund Association into the Teachers Retirement Association.

77.5    Sec. 49. REPEALER.
77.6(a) Minnesota Statutes 2012, sections 354A.021, subdivision 5; 354A.108; 354A.24;
77.7and 354A.27, subdivision 5, are repealed.
77.8(b) Minnesota Statutes 2013 Supplement, sections 354A.27, subdivisions 6a and 7;
77.9and 354A.31, subdivision 4a, are repealed.

77.10    Sec. 50. EFFECTIVE DATE.
77.11(a) Section 46, subdivision 5, is effective October 1, 2014. Sections 1 to 14, 16 to
77.1245, 46, subdivisions 1 to 4 and 6, 47, and 49 are effective June 30, 2015, if the following
77.13approve the consolidation provisions before October 1, 2014:
77.14(1) the board of trustees of the Duluth Teachers Retirement Fund Association;
77.15(2) the membership of the Duluth Teachers Retirement Fund Association; and
77.16(3) the board of trustees of the Teachers Retirement Association.
77.17(b) An approval under paragraph (a) must be provided in a timely manner in
77.18compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, to the secretary
77.19of state, the state auditor, the legislative auditor, and the revisor of statutes by the chief
77.20administrative officer of the Duluth Teachers Retirement Fund Association for an approval
77.21under paragraph (a) by the board of trustees of the Duluth Teachers Retirement Fund
77.22Association or by the membership of the Duluth Teachers Retirement Fund Association and
77.23by the chief administrative officer of the Teachers Retirement Association for an approval
77.24under paragraph (a) by the board of trustees of the Teachers Retirement Association.


77.28    Section 1. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 3a,
77.29is amended to read:
77.30    Subd. 3a. Special Direct state aid to first class city teachers retirement fund
77.31associations. (a) The state shall pay $346,000 as special direct state aid to the Duluth
77.32Teachers Retirement Fund Association and $2,827,000 to the St. Paul Teachers Retirement
77.33Fund Association.
78.1(b) In addition to other amounts specified in this subdivision, the state shall pay
78.2$7,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.
78.3    (b) (c) The aids under this subdivision are payable October 1 annually. The
78.4commissioner of management and budget shall pay the aids specified in this subdivision.
78.5The amounts required are appropriated annually from the general fund to the commissioner
78.6of management and budget.
78.7EFFECTIVE DATE.This section is effective September 30, 2015.

78.8    Sec. 2. Minnesota Statutes 2013 Supplement, section 354A.12, subdivision 3c, is
78.9amended to read:
78.10    Subd. 3c. Termination of supplemental contributions and direct matching
78.11and state aid. (a) The supplemental contributions payable to the St. Paul Teachers
78.12Retirement Fund Association by Independent School District No. 625 under section
78.13423A.02, subdivision 3 , and all forms of state aid under subdivision 3a to the St. Paul
78.14Teachers Retirement Fund Association must continue until the current assets of the fund
78.15equal or exceed the actuarial accrued liability of the fund as determined in the most recent
78.16actuarial report for the fund by the actuary retained under section 356.214 or until June
78.1730, 2037 the established date for full funding under section 356.215, subdivision 11,
78.18whichever occurs earlier.
78.19(b) The aid to the Duluth Teachers Retirement Fund Association under section
78.20423A.02, subdivision 3 , and all forms of state aid under subdivision 3a to the Duluth
78.21Teachers Retirement Fund Association must continue until the current assets of the fund
78.22equal or exceed the actuarial accrued liability of the fund as determined in the most
78.23recent actuarial report for the fund by the actuary retained under section 356.214 or until
78.24the established date for full funding under section 356.215, subdivision 11, whichever
78.25occurs earlier.
78.26EFFECTIVE DATE.This section is effective the day following final enactment.

78.27    Sec. 3. Minnesota Statutes 2012, section 356.215, subdivision 11, is amended to read:
78.28    Subd. 11. Amortization contributions. (a) In addition to the exhibit indicating
78.29the level normal cost, the actuarial valuation of the retirement plan must contain an
78.30exhibit for financial reporting purposes indicating the additional annual contribution
78.31sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit
78.32for contribution determination purposes indicating the additional contribution sufficient
78.33to amortize the unfunded actuarial accrued liability. For the retirement plans listed in
79.1subdivision 8, paragraph (c), but excluding the MERF division of the Public Employees
79.2Retirement Association and the legislators retirement plan, the additional contribution
79.3must be calculated on a level percentage of covered payroll basis by the established
79.4date for full funding in effect when the valuation is prepared, assuming annual payroll
79.5growth at the applicable percentage rate set forth in subdivision 8, paragraph (c). For all
79.6other retirement plans and for the MERF division of the Public Employees Retirement
79.7Association and the legislators retirement plan, the additional annual contribution must be
79.8calculated on a level annual dollar amount basis.
79.9    (b) For any retirement plan other than the general state employees retirement plan
79.10of the Minnesota State Retirement System or a retirement plan governed by paragraph
79.11(d), (e), (f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions
79.12used for calculating the actuarial accrued liability of the fund, a change in the benefit
79.13plan governing annuities and benefits payable from the fund, a change in the actuarial
79.14cost method used in calculating the actuarial accrued liability of all or a portion of the
79.15fund, or a combination of the three, which change or changes by itself or by themselves
79.16without inclusion of any other items of increase or decrease produce a net increase in the
79.17unfunded actuarial accrued liability of the fund, the established date for full funding is the
79.18first actuarial valuation date occurring after June 1, 2020.
79.19    (c) For any retirement plan other than the general employees retirement plan of the
79.20Public Employees Retirement Association, if there has been a change in any or all of the
79.21actuarial assumptions used for calculating the actuarial accrued liability of the fund, a
79.22change in the benefit plan governing annuities and benefits payable from the fund, a
79.23change in the actuarial cost method used in calculating the actuarial accrued liability of all
79.24or a portion of the fund, or a combination of the three, and the change or changes, by itself
79.25or by themselves and without inclusion of any other items of increase or decrease, produce
79.26a net increase in the unfunded actuarial accrued liability in the fund, the established date
79.27for full funding must be determined using the following procedure:
79.28    (i) the unfunded actuarial accrued liability of the fund must be determined in
79.29accordance with the plan provisions governing annuities and retirement benefits and the
79.30actuarial assumptions in effect before an applicable change;
79.31    (ii) the level annual dollar contribution or level percentage, whichever is applicable,
79.32needed to amortize the unfunded actuarial accrued liability amount determined under item
79.33(i) by the established date for full funding in effect before the change must be calculated
79.34using the interest assumption specified in subdivision 8 in effect before the change;
79.35    (iii) the unfunded actuarial accrued liability of the fund must be determined in
79.36accordance with any new plan provisions governing annuities and benefits payable from
80.1the fund and any new actuarial assumptions and the remaining plan provisions governing
80.2annuities and benefits payable from the fund and actuarial assumptions in effect before
80.3the change;
80.4    (iv) the level annual dollar contribution or level percentage, whichever is applicable,
80.5needed to amortize the difference between the unfunded actuarial accrued liability amount
80.6calculated under item (i) and the unfunded actuarial accrued liability amount calculated
80.7under item (iii) over a period of 30 years from the end of the plan year in which the
80.8applicable change is effective must be calculated using the applicable interest assumption
80.9specified in subdivision 8 in effect after any applicable change;
80.10    (v) the level annual dollar or level percentage amortization contribution under item
80.11(iv) must be added to the level annual dollar amortization contribution or level percentage
80.12calculated under item (ii);
80.13    (vi) the period in which the unfunded actuarial accrued liability amount determined
80.14in item (iii) is amortized by the total level annual dollar or level percentage amortization
80.15contribution computed under item (v) must be calculated using the interest assumption
80.16specified in subdivision 8 in effect after any applicable change, rounded to the nearest
80.17integral number of years, but not to exceed 30 years from the end of the plan year in which
80.18the determination of the established date for full funding using the procedure set forth in this
80.19clause is made and not to be less than the period of years beginning in the plan year in which
80.20the determination of the established date for full funding using the procedure set forth in
80.21this clause is made and ending by the date for full funding in effect before the change; and
80.22    (vii) the period determined under item (vi) must be added to the date as of which
80.23the actuarial valuation was prepared and the date obtained is the new established date
80.24for full funding.
80.25    (d) For the MERF division of the Public Employees Retirement Association, the
80.26established date for full funding is June 30, 2031.
80.27    (e) For the general employees retirement plan of the Public Employees Retirement
80.28Association, the established date for full funding is June 30, 2031.
80.29    (f) For the Teachers Retirement Association, the established date for full funding is
80.30June 30, 2037.
80.31    (g) For the correctional state employees retirement plan of the Minnesota State
80.32Retirement System, the established date for full funding is June 30, 2038.
80.33    (h) For the judges retirement plan, the established date for full funding is June
80.3430, 2038.
80.35    (i) For the public employees police and fire retirement plan, the established date
80.36for full funding is June 30, 2038.
81.1    (j) For the St. Paul Teachers Retirement Fund Association, the established date for
81.2full funding is June 30 of the 25th year from the valuation date, 2042. In addition to
81.3other requirements of this chapter, the annual actuarial valuation must contain an exhibit
81.4indicating the funded ratio and the deficiency or sufficiency in annual contributions when
81.5comparing liabilities to the market value of the assets of the fund as of the close of the
81.6most recent fiscal year.
81.7(k) For the general state employees retirement plan of the Minnesota State
81.8Retirement System, the established date for full funding is June 30, 2040.
81.9    (l) For the retirement plans for which the annual actuarial valuation indicates an
81.10excess of valuation assets over the actuarial accrued liability, the valuation assets in
81.11excess of the actuarial accrued liability must be recognized as a reduction in the current
81.12contribution requirements by an amount equal to the amortization of the excess expressed
81.13as a level percentage of pay over a 30-year period beginning anew with each annual
81.14actuarial valuation of the plan.
81.15EFFECTIVE DATE.This section is effective the day following final enactment.


81.18    Section 1. Minnesota Statutes 2012, section 136F.481, is amended to read:
81.19136F.481 EARLY SEPARATION INCENTIVE PROGRAM.
81.20(a) Notwithstanding any provision of law to the contrary, the Board of Trustees
81.21of the Minnesota State Colleges and Universities may offer a targeted early separation
81.22incentive program for its employees.
81.23(b) The early separation incentive program may include one or both of the following:
81.24(1) cash incentives, not to exceed one year of base salary; or
81.25(2) employer contributions to the postretirement healthcare savings plan established
81.26under section 352.98.
81.27(c) To be eligible to receive an incentive, an employee must be at least age 55
81.28and must have at least five years of employment by the Minnesota State Colleges and
81.29Universities System. The board of trustees shall establish and periodically revise the
81.30eligibility requirements for system employees to receive an incentive. The board of
81.31trustees shall file a copy of its proposed revised eligibility requirements with the chairs
81.32and ranking members of the senate committee on with higher education within its
81.33jurisdiction and the Higher Education budget and Policy senate finance division of the
81.34senate Committee on Finance with higher education within its jurisdiction and with the
81.35chair and ranking members of the Higher Education and Workforce Development Finance
82.1and Policy Division of the Finance committee of in the house of representatives with
82.2higher education within its jurisdiction and of the house of representatives Committee
82.3on Ways and Means, at least 30 days before their the final adoption of the proposed
82.4revised eligibility requirements by the board of trustees, shall post the same document
82.5on the system Web site at the same time, and shall hold a public hearing on the proposed
82.6eligibility requirements. The type and any additional amount of the incentive to be offered
82.7may vary by employee classification, as specified by the board.
82.8(d) The president of a college or university, consistent with paragraphs (b) and
82.9(c), may designate:
82.10(1) specific departments or programs at the college or university whose employees
82.11are eligible to be offered the incentive program; or
82.12(2) positions at the college or university eligible to be offered the incentive program.
82.13(e) The chancellor, consistent with paragraphs (b) and (c), may designate:
82.14(1) system office divisions whose employees are eligible to be offered the incentive
82.15program; or
82.16(2) positions at the system office eligible to be offered the incentive program.
82.17(f) Acceptance of the offered incentive must be voluntary on the part of the employee
82.18and must be in writing. The incentive may only be offered at the sole discretion of the
82.19president of the applicable college or university.
82.20(g) A decision by the president of a college or university or by the chancellor not to
82.21offer an incentive may not be challenged.
82.22(h) The cost of the incentive is payable by the college or university on whose behalf
82.23the president offered the incentive or from the system office budget if the chancellor offered
82.24the incentive. If a college or university is merged, the remaining cost of any early separation
82.25incentive must be borne by the successor institution. If a college or university is closed,
82.26the remaining cost of any early separation incentive must be borne by the board of trustees.
82.27(i) Annually, the chancellor and the president of each college or university must
82.28report on the number and types of early separation incentives which were offered and
82.29utilized under this section. The report must be filed annually with the board of trustees and
82.30with the Legislative Reference Library on or before September 1.
82.31(j) The early retirement incentive authority under this section expires on June 30,
82.322019.
82.33EFFECTIVE DATE.This section is effective the day following final enactment.

82.34    Sec. 2. Minnesota Statutes 2012, section 352.1155, subdivision 1, is amended to read:
83.1    Subdivision 1. Eligibility. Except as indicated in subdivision 4, the annuity
83.2reduction provisions of section 352.115, subdivision 10, do not apply to a person who:
83.3(1) retires from the Minnesota State Colleges and Universities system with at least
83.4ten years of combined service credit in a system under the jurisdiction of the Board of
83.5Trustees of the Minnesota State Colleges and Universities;
83.6(2) was employed on a full-time basis immediately preceding retirement as a faculty
83.7member or as an unclassified administrator in that system;
83.8(3) was not a recipient of an early retirement incentive under section 136F.481;
83.9(3) (4) begins drawing an annuity from the general state employees retirement plan
83.10of the Minnesota State Retirement System; and
83.11(4) (5) returns to work on not less than a one-third time basis and not more than a
83.12two-thirds time basis in the system from which the person retired under an agreement in
83.13which the person may not earn a salary of more than $46,000 $62,000 in a calendar year
83.14from through employment after retirement in the system from which the person retired.
83.15EFFECTIVE DATE.This section is effective July 1, 2014.

83.16    Sec. 3. Minnesota Statutes 2012, section 352.1155, subdivision 4, is amended to read:
83.17    Subd. 4. Exemption limit. For a person eligible under this section who earns more
83.18than $46,000 $62,000 in a calendar year from through reemployment in the Minnesota
83.19State Colleges and Universities system following retirement, the annuity reduction
83.20provisions of section 352.115, subdivision 10, apply only to income over $46,000 $62,000.
83.21EFFECTIVE DATE.This section is effective July 1, 2014.

83.22    Sec. 4. Minnesota Statutes 2012, section 354.445, is amended to read:
83.23354.445 NO ANNUITY REDUCTION.
83.24(a) The annuity reduction provisions of section 354.44, subdivision 5, do not apply
83.25to a person who:
83.26(1) retires from the Minnesota State Colleges and Universities system with at least
83.27ten years of combined service credit in a system under the jurisdiction of the Board of
83.28Trustees of the Minnesota State Colleges and Universities;
83.29(2) was employed on a full-time basis immediately preceding retirement as a faculty
83.30member or as an unclassified administrator in that system;
83.31(3) was not a recipient of an early retirement incentive under section 136F.481;
83.32(3) (4) begins drawing an annuity from the teachers retirement association; and
84.1(4) (5) returns to work on not less than a one-third time basis and not more than a
84.2two-thirds time basis in the system from which the person retired under an agreement in
84.3which the person may not earn a salary of more than $46,000 $62,000 in a calendar year
84.4from through employment after retirement in the system from which the person retired.
84.5(b) Initial participation, the amount of time worked, and the duration of participation
84.6under this section must be mutually agreed upon by the president of the institution where
84.7the person returns to work and the employee. The president may require up to one-year
84.8notice of intent to participate in the program as a condition of participation under this
84.9section. The president shall determine the time of year the employee shall work. The
84.10employer or the president may not require a person to waive any rights under a collective
84.11bargaining agreement as a condition of participation under this section.
84.12(c) Notwithstanding any law to the contrary, a person eligible under paragraphs (a)
84.13and (b) may not, based on employment to which the waiver in this section applies, earn
84.14further service credit in a Minnesota public defined benefit plan and is not eligible to
84.15participate in a Minnesota public defined contribution plan, other than a volunteer fire plan
84.16governed by chapter 424A. No employer or employee contribution to any of these plans
84.17may be made on behalf of such a person.
84.18(d) For a person eligible under paragraphs (a) and (b) who earns more than $46,000
84.19 $62,000 in a calendar year from employment after retirement due to employment by the
84.20Minnesota state colleges and universities system, the annuity reduction provisions of
84.21section 354.44, subdivision 5, apply only to income over $46,000 $62,000.
84.22(e) A person who returns to work under this section is a member of the appropriate
84.23bargaining unit and is covered by the appropriate collective bargaining contract. Except
84.24as provided in this section, the person's coverage is subject to any part of the contract
84.25limiting rights of part-time employees.
84.26EFFECTIVE DATE.This section is effective July 1, 2014.

84.27    Sec. 5. Minnesota Statutes 2012, section 354A.31, subdivision 3a, is amended to read:
84.28    Subd. 3a. No annuity reduction. (a) The annuity reduction provisions of
84.29subdivision 3 do not apply to a person who:
84.30(1) retires from the technical college system with at least ten years of service credit
84.31in the system from which the person retires;
84.32(2) was employed on a full-time basis immediately preceding retirement as a
84.33technical college faculty member;
84.34(3) was not a recipient of an early retirement incentive under section 136F.481;
85.1(3) (4) begins drawing an annuity from a first class city teachers retirement
85.2association; and
85.3(4) (5) returns to work on not less than a one-third time basis and not more than a
85.4two-thirds time basis in the technical college system under an agreement in which the
85.5person may not earn a salary of more than $46,000 $62,000 in a calendar year from
85.6 through the technical college system.
85.7(b) Initial participation, the amount of time worked, and the duration of participation
85.8under this section must be mutually agreed upon by the employer and the employee. The
85.9employer may require up to a one-year notice of intent to participate in the program as a
85.10condition of participation under this section. The employer shall determine the time
85.11of year the employee shall work.
85.12(c) Notwithstanding any law to the contrary, a person eligible under paragraphs
85.13(a) and (b) may not earn further service credit in a first class city teachers retirement
85.14association and is not eligible to participate in the individual retirement account plan or
85.15the supplemental retirement plan established in chapter 354B as a result of service under
85.16this section. No employer or employee contribution to any of these plans may be made on
85.17behalf of such a person.
85.18EFFECTIVE DATE.This section is effective July 1, 2014.

85.19    Sec. 6. Minnesota Statutes 2012, section 354B.21, subdivision 2, is amended to read:
85.20    Subd. 2. Coverage; election. (a) An eligible person employed by the board has
85.21the default coverage specified in subdivision 3, or other subdivisions of this section,
85.22whichever is applicable, and retains that coverage for the period of covered employment
85.23unless a timely election to change that coverage is made as specified in this section.
85.24(b) An eligible person under subdivision 3, paragraph (b) or (c), is authorized to elect
85.25prospective Teachers Retirement Association plan coverage.
85.26(c) An eligible person under subdivision 3, paragraph (d), is authorized to elect
85.27prospective coverage by the plan established by this chapter.
85.28(d) The election under paragraph (a) must be made within one year of commencing
85.29eligible Minnesota State Colleges and Universities system employment. If an election
85.30is not made within the specified election period due to a termination of Minnesota State
85.31Colleges and Universities system employment, an election may be made within 90 days
85.32of returning to eligible Minnesota State Colleges and Universities system employment.
85.33Except as specified in paragraph (f), all elections are irrevocable.
85.34(e) Except as provided in paragraph (f), a purchase of service credit in the Teachers
85.35Retirement Association plan for any period or periods of Minnesota State Colleges
86.1and Universities system employment occurring before the election under this section
86.2is prohibited.
86.3(f) Notwithstanding other paragraphs in this subdivision, a faculty member who
86.4is a member of the individual retirement account plan may elect to transfer retirement
86.5coverage to the teachers retirement plan within one year of the faculty member first
86.6achieving tenure or its equivalent at a Minnesota state college or university. The faculty
86.7member electing Teachers Retirement Association coverage under this paragraph must
86.8purchase service credit in the Teachers Retirement Association for the entire period of
86.9time covered under the individual retirement account plan and the purchase payment
86.10amount must be determined under section 356.551. The Teachers Retirement Association
86.11may charge a faculty member transferring coverage a reasonable fee to cover the costs
86.12associated with computing the actuarial cost of purchasing service credit and making the
86.13transfer. A faculty member transferring from the individual retirement account plan to the
86.14Teachers Retirement Association may use any balances to the credit of the faculty member
86.15in the individual retirement account plan, any balances to the credit of the faculty member
86.16in the higher education supplemental retirement plan established under chapter 354C, or
86.17any source specified in section 356.441, subdivision 1, to purchase the service credit in the
86.18Teachers Retirement Association. If the total amount of payments under this paragraph are
86.19less than the total purchase payment amount under section 356.551, the payment amounts
86.20must be refunded to the applicable source. The retirement coverage transfer and service
86.21credit purchase authority under this paragraph expires with respect to any Minnesota State
86.22Colleges and Universities System faculty initially hired after June 30, 2014.
86.23EFFECTIVE DATE.This section is effective July 1, 2014.

86.24    Sec. 7. Laws 2009, chapter 169, article 6, section 1, the effective date, is amended to
86.25read:
86.26EFFECTIVE DATE; SUNSET.This section is effective the day following final
86.27enactment and expires June 30, 2014.
86.28EFFECTIVE DATE.This section is effective the day following final enactment.


86.31    Section 1. Minnesota Statutes 2012, section 353.6511, subdivision 7, is amended to read:
86.32    Subd. 7. Postretirement adjustments. Effective January 1, 2012, service pensions
86.33and survivor benefits in force are entitled to be recomputed with the number of units
87.1specified in subdivision 2, subdivision 4, and subdivision 6. Optional annuities under
87.2Minnesota Statutes 2010, section 423C.05, subdivision 8, also are entitled to be recomputed
87.3as the actuarial equivalent of the service pensions and survivor benefits with the number of
87.4units specified in subdivision 2, subdivision 4, and subdivision 6. Retirement annuities,
87.5service pensions, disability benefits, and survivor benefits after December 31, 2015, are
87.6eligible for postretirement adjustments under section 356.415, subdivision 1c. The unit
87.7value for the calculation of a retirement annuity first payable after December 31, 2015, is
87.8the calendar year 2015 unit value, plus any annual postretirement adjustment percentage
87.9amount payable after December 31, 2015, under section 356.415, subdivision 1c, payable
87.10after December 31, 2015, and before the date of retirement paragraph (a), clause (1), or,
87.11when applicable, under section 356.415, subdivision 1c, paragraph (b), clause (1).

87.12    Sec. 2. Minnesota Statutes 2012, section 353.6512, subdivision 7, is amended to read:
87.13    Subd. 7. Postretirement adjustments. Retirement annuities, service pensions,
87.14disability benefits, and survivor benefits after December 31, 2015, are eligible for
87.15postretirement adjustments under section 356.415, subdivision 1c. The unit value for the
87.16calculation of a retirement annuity first payable after December 31, 2015, is the calendar
87.17year 2015 unit value, plus any annual postretirement adjustment percentage amount
87.18payable after December 31, 2015, under section 356.415, subdivision 1c, payable after
87.19December 31, 2015, and before the date of retirement paragraph (a), clause (1), or, when
87.20applicable, under section 356.415, subdivision 1c, paragraph (b), clause (1).

87.21    Sec. 3. Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3, is
87.22amended to read:
87.23    Subd. 3. Reallocation of amortization state aid. (a) Seventy percent of the
87.24difference between $5,720,000 and the current year amortization aid distributed under
87.25subdivision 1 that is not distributed for any reason to a municipality must be distributed
87.26by the commissioner of revenue according to this paragraph. The commissioner shall
87.27distribute 50 percent of the amounts derived under this paragraph to the Teachers
87.28Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association,
87.29and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded
87.30actuarial accrued liabilities of the respective funds. These payments must be made on July
87.3115 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth
87.32Teachers Retirement Fund Association becomes fully funded, the association's eligibility
87.33for its portion of this aid ceases. Amounts remaining in the undistributed balance account
87.34at the end of the biennium if aid eligibility ceases cancel to the general fund.
88.1    (b) In order to receive amortization aid under paragraph (a), before June 30 annually
88.2Independent School District No. 625, St. Paul, must make an additional contribution of
88.3$800,000 each year to the St. Paul Teachers Retirement Fund Association.
88.4    (c) Thirty percent of the difference between $5,720,000 and the current year
88.5amortization aid under subdivision 1a 1 that is not distributed for any reason to a
88.6municipality must be distributed under section 69.021, subdivision 7, paragraph (d), as
88.7additional funding to support a minimum fire state aid amount for volunteer firefighter
88.8relief associations.
88.9EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

88.10    Sec. 4. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 2, is
88.11amended to read:
88.12    Subd. 2. Allocation. (a) Of the total amount appropriated as supplemental state aid:
88.13    (1) 58.065 58.064 percent must be paid to the executive director of the Public
88.14Employees Retirement Association for deposit in the public employees police and fire
88.15retirement fund established by section 353.65, subdivision 1;
88.16    (2) 35.484 percent must be paid to municipalities other than municipalities solely
88.17employing firefighters with retirement coverage provided by the public employees police
88.18and fire retirement plan which qualified to receive fire state aid in that calendar year,
88.19allocated in proportion to the most recent amount of fire state aid paid under section
88.2069.021, subdivision 7 , for the municipality bears to the most recent total fire state aid
88.21for all municipalities other than the municipalities solely employing firefighters with
88.22retirement coverage provided by the public employees police and fire retirement plan
88.23paid under section 69.021, subdivision 7, with the allocated amount for fire departments
88.24participating in the voluntary statewide lump-sum volunteer firefighter retirement plan
88.25paid to the executive director of the Public Employees Retirement Association for deposit
88.26in the fund established by section 353G.02, subdivision 3, and credited to the respective
88.27account and with the balance paid to the treasurer of each municipality for transmittal
88.28within 30 days of receipt to the treasurer of the applicable volunteer firefighter relief
88.29association for deposit in its special fund; and
88.30    (3) 6.452 percent must be paid to the executive director of the Minnesota State
88.31Retirement System for deposit in the state patrol retirement fund.
88.32(b) For purposes of this section, the term "municipalities" includes independent
88.33nonprofit firefighting corporations that participate in the voluntary statewide lump-sum
88.34volunteer firefighter retirement plan under chapter 353G or with subsidiary volunteer
88.35firefighter relief associations operating under chapter 424A.
89.1EFFECTIVE DATE.The addition of the paragraph (a) designation and the
89.2addition of paragraph (b) in this section are effective the day following final enactment.
89.3The modification of the allocation percentage in this section is effective retroactively
89.4from July 1, 2013.

89.5    Sec. 5. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 3, is
89.6amended to read:
89.7    Subd. 3. Reporting; definitions. (a) On or before September 1, annually, the
89.8executive director of the Public Employees Retirement Association shall report to the
89.9commissioner of revenue the following:
89.10    (1) the municipalities which employ firefighters with retirement coverage by the
89.11public employees police and fire retirement plan;
89.12    (2) the number of firefighters with public employees police and fire retirement plan
89.13coverage employed by each municipality;
89.14    (3) the fire departments covered by the voluntary statewide lump-sum volunteer
89.15firefighter retirement plan; and
89.16    (4) any other information requested by the commissioner to administer the police
89.17and firefighter retirement supplemental state aid program.
89.18    (b) For this subdivision, (i) the number of firefighters employed by a municipality
89.19who have public employees police and fire retirement plan coverage means the number
89.20of firefighters with public employees police and fire retirement plan coverage that were
89.21employed by the municipality for not less than 30 hours per week for a minimum of six
89.22months prior to December 31 preceding the date of the payment under this section and, if
89.23the person was employed for less than the full year, prorated to the number of full months
89.24employed; and (ii) the number of active police officers certified for police state aid receipt
89.25under section 69.011, subdivisions 2 and 2b, means, for each municipality, the number of
89.26police officers meeting the definition of peace officer in section 69.011, subdivision 1,
89.27counted as provided and limited by section 69.011, subdivisions 2 and 2b.
89.28EFFECTIVE DATE.This section is effective the day following final enactment.

89.29    Sec. 6. ADDITIONAL SUPPLEMENTAL AID REVISION FOR OMITTED 2013
89.30INDEPENDENT NONPROFIT FIREFIGHTING CORPORATIONS.
89.31(a) Notwithstanding any provision of Minnesota Statutes, Chapter 423A, to the
89.32contrary, this section modifies the allocation of the police and fire supplemental retirement
89.33state aid under Minnesota Statutes 2013 Supplement, section 423A.022, for October
89.341, 2014.
90.1(b) Before the allocation of the police and fire supplemental retirement state aid is
90.2made for October 1, 2014, the commissioner of revenue shall:
90.3(1) determine those fire departments that qualified for fire state aid under Minnesota
90.4Statutes 2012, section 69.021, subdivision 7, on October 1, 2013, that did not receive a
90.52013 allocation of police and fire supplemental retirement state aid, and that were an
90.6independent nonprofit firefighting corporation; and
90.7(2) determine the amount of police and fire supplemental retirement state aid
90.8under Minnesota Statutes 2013 Supplement, section 423A.022, that the fire departments
90.9described in clause (1) would have received on October 1, 2013, if the fire departments
90.10had been included in that allocation.
90.11(c) The total amount determined in paragraph (b), clause (2), must be deducted from
90.12the amount available for allocation under Minnesota Statutes 2013 Supplement, section
90.13423A.022, subdivision 2, clause (2), and the commissioner of revenue shall pay to the fire
90.14departments determined in paragraph (b), clause (2), their respective portion of the total as
90.15an additional payment on October 1, 2014.
90.16(d) The remaining amount after the deduction of the total amount under paragraph
90.17(c) must be allocated as provided in section 4.

90.18    Sec. 7. PERA; STUDY OF LOCAL RELIEF ASSOCIATION BENEFITS
90.19UNDER CONSOLIDATION.
90.20The executive director of the Public Employees Retirement Association shall report
90.21to the Legislative Commission on Pensions and Retirement by February 1, 2015, regarding
90.22the situation of former members and surviving spouses of former members, as further
90.23specified in this section, of local salaried police and fire relief associations governed by
90.24Minnesota Statutes, chapter 423A, that consolidated with the public employees police and
90.25fire retirement plan under Minnesota Statutes, chapter 353A, and Laws 1999, chapter
90.26222, article 4.
90.27EFFECTIVE DATE.This section is effective the day following final enactment.


90.30    Section 1. Minnesota Statutes 2013 Supplement, section 356.215, subdivision 8,
90.31is amended to read:
90.32    Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
90.33the applicable following preretirement interest assumption and the applicable following
90.34postretirement interest assumption:
91.1(1) select and ultimate interest rate assumption

91.2 91.3 91.4 91.5	plan	ultimate preretirement interest rate assumption	ultimate postretirement interest rate assumption
91.6	general state employees retirement plan	8.5%	6.0%
91.7	correctional state employees retirement plan	8.5	6.0
91.8	State Patrol retirement plan	8.5	6.0
91.9 91.10 91.11	legislators retirement plan, and for the constitutional officers calculation of total plan liabilities	0.0	0.0
91.12	judges retirement plan	8.5	6.0
91.13	general public employees retirement plan	8.5	6.0
91.14	public employees police and fire retirement plan	8.5	6.0
91.15 91.16	local government correctional service retirement plan	8.5	6.0
91.17	teachers retirement plan	8.5	6.0
91.18	Duluth teachers retirement plan	8.5	8.5
91.19	St. Paul teachers retirement plan	8.5	8.5

91.20Except for the legislators retirement plan and the constitutional officers calculation
91.21of total plan liabilities, the select preretirement interest rate assumption for the period
91.22after June 30, 2012, through June 30, 2017, is 8.0 percent. Except for the legislators
91.23retirement plan and the constitutional officers calculation of total plan liabilities, the select
91.24postretirement interest rate assumption for the period after June 30, 2012, through June
91.2530, 2017, is 5.5 percent, except for the Duluth teachers retirement plan and the St. Paul
91.26teachers retirement plan, each with a select postretirement interest rate assumption for the
91.27period after June 30, 2012, through June 30, 2017, of 8.0 percent.
91.28(2) single rate preretirement and postretirement interest rate assumption

91.29 91.30	plan	interest rate assumption
91.31	Bloomington Fire Department Relief Association	6.0
91.32 91.33	local monthly benefit volunteer firefighters relief associations	5.0

91.34(b)(1) If funding stability has been attained, the valuation must reflect payment of
91.35the postretirement adjustment under section 354A.27, subdivision 7; 354A.29, subdivision
91.369; or 356.415, subdivision 1.
91.37(2) If funding stability has not been attained, the actuary must estimate when a plan
91.38will attain the defined funding stability measure, assuming payment of the postretirement
91.39adjustment under section 354A.27, subdivision 7; 354A.29, subdivision 9; or 356.415,
91.40subdivision 1, and include in the annual actuarial valuation the liabilities of the plan
91.41assuming payment of the postretirement adjustment under section 354A.27, subdivision 7;
92.1354A.29, subdivision 9; or 356.415, subdivision 1, for the applicable period or periods
92.2beginning when funding stability is projected to be attained.
92.3    (b) (c) The actuarial valuation must use the applicable following single rate future
92.4salary increase assumption, the applicable following modified single rate future salary
92.5increase assumption, or the applicable following graded rate future salary increase
92.6assumption:
92.7    (1) single rate future salary increase assumption

92.8	plan	future salary increase assumption
92.9	legislators retirement plan		5.0%
92.10	judges retirement plan		3.0
92.11 92.12	Bloomington Fire Department Relief Association		4.0

92.13    (2) age-related future salary increase age-related select and ultimate future salary
92.14increase assumption or graded rate future salary increase assumption

92.15	plan	future salary increase assumption
92.16	local government correctional service retirement plan	assumption C
92.17	Duluth teachers retirement plan	assumption A
92.18	St. Paul teachers retirement plan	assumption B

92.19For plans other than the Duluth teachers
92.20retirement plan, the select calculation
92.21is: during the designated select period, a
92.22designated percentage rate is multiplied by
92.23the result of the designated integer minus T,
92.24where T is the number of completed years
92.25of service, and is added to the applicable
92.26future salary increase assumption. The
92.27designated select period is ten years and
92.28the designated integer is ten for the Duluth
92.29Teachers Retirement Fund Association
92.30and for the local government correctional
92.31service retirement plan and 15 for the St.
92.32Paul Teachers Retirement Fund Association.
92.33The designated percentage rate is 0.2
92.34percent for the St. Paul Teachers Retirement
92.35Fund Association. The select calculation
92.36for the Duluth Teachers Retirement Fund
92.37Association is 8.00 percent per year for
93.1service years one through seven, 7.25 percent
93.2per year for service years seven and eight,
93.3and 6.50 percent per year for service years
93.4eight and nine.
93.5    The ultimate future salary increase assumption is:

93.6	age	A	B	C
93.7	16	6.00%	5.90%	9.00%
93.8	17	6.00	5.90	9.00
93.9	18	6.00	5.90	9.00
93.10	19	6.00	5.90	9.00
93.11	20	6.00	5.90	9.00
93.12	21	6.00	5.90	8.75
93.13	22	6.00	5.90	8.50
93.14	23	6.00	5.85	8.25
93.15	24	6.00	5.80	8.00
93.16	25	6.00	5.75	7.75
93.17	26	6.00	5.70	7.50
93.18	27	6.00	5.65	7.25
93.19	28	6.00	5.60	7.00
93.20	29	6.00	5.55	6.75
93.21	30	6.00	5.50	6.75
93.22	31	6.00	5.45	6.50
93.23	32	6.00	5.40	6.50
93.24	33	6.00	5.35	6.50
93.25	34	6.00	5.30	6.25
93.26	35	6.00	5.25	6.25
93.27	36	5.86	5.20	6.00
93.28	37	5.73	5.15	6.00
93.29	38	5.59	5.10	6.00
93.30	39	5.45	5.05	5.75
93.31	40	5.31	5.00	5.75
93.32	41	5.18	4.95	5.75
93.33	42	5.04	4.90	5.50
93.34	43	4.90	4.85	5.25
93.35	44	4.76	4.80	5.25
93.36	45	4.63	4.75	5.00
93.37	46	4.49	4.70	5.00
93.38	47	4.35	4.65	5.00
93.39	48	4.21	4.60	5.00
93.40	49	4.08	4.55	5.00
93.41	50	3.94	4.50	5.00
93.42	51	3.80	4.45	5.00
94.1	52	3.66	4.40	5.00
94.2	53	3.53	4.35	5.00
94.3	54	3.39	4.30	5.00
94.4	55	3.25	4.25	4.75
94.5	56	3.25	4.20	4.75
94.6	57	3.25	4.15	4.50
94.7	58	3.25	4.10	4.25
94.8	59	3.25	4.05	4.25
94.9	60	3.25	4.00	4.25
94.10	61	3.25	4.00	4.25
94.11	62	3.25	4.00	4.25
94.12	63	3.25	4.00	4.25
94.13	64	3.25	4.00	4.25
94.14	65	3.25	4.00	4.00
94.15	66	3.25	4.00	4.00
94.16	67	3.25	4.00	4.00
94.17	68	3.25	4.00	4.00
94.18	69	3.25	4.00	4.00
94.19	70	3.25	4.00	4.00

94.20(3) service-related ultimate future salary increase assumption

94.21 94.22	general state employees retirement plan of the Minnesota State Retirement System	assumption A
94.23 94.24	general employees retirement plan of the Public Employees Retirement Association	assumption B
94.25	Teachers Retirement Association	assumption C
94.26	public employees police and fire retirement plan	assumption D
94.27	State Patrol retirement plan	assumption E
94.28 94.29	correctional state employees retirement plan of the Minnesota State Retirement System	assumption F

94.30 94.31	service length	A	B	C	D	E	F
94.32	1	10.50%	12.03%	12.00%	13.00%	8.00%	6.00%
94.33	2	8.10	8.90	9.00	11.00	7.50	5.85
94.34	3	6.90	7.46	8.00	9.00	7.00	5.70
94.35	4	6.20	6.58	7.50	8.00	6.75	5.55
94.36	5	5.70	5.97	7.25	6.50	6.50	5.40
94.37	6	5.30	5.52	7.00	6.10	6.25	5.25
94.38	7	5.00	5.16	6.85	5.80	6.00	5.10
94.39	8	4.70	4.87	6.70	5.60	5.85	4.95
94.40	9	4.50	4.63	6.55	5.40	5.70	4.80
94.41	10	4.40	4.42	6.40	5.30	5.55	4.65
94.42	11	4.20	4.24	6.25	5.20	5.40	4.55
94.43	12	4.10	4.08	6.00	5.10	5.25	4.45
95.1	13	4.00	3.94	5.75	5.00	5.10	4.35
95.2	14	3.80	3.82	5.50	4.90	4.95	4.25
95.3	15	3.70	3.70	5.25	4.80	4.80	4.15
95.4	16	3.60	3.60	5.00	4.80	4.65	4.05
95.5	17	3.50	3.51	4.75	4.80	4.50	3.95
95.6	18	3.50	3.50	4.50	4.80	4.35	3.85
95.7	19	3.50	3.50	4.25	4.80	4.20	3.75
95.8	20	3.50	3.50	4.00	4.80	4.05	3.75
95.9	21	3.50	3.50	3.90	4.70	4.00	3.75
95.10	22	3.50	3.50	3.80	4.60	4.00	3.75
95.11	23	3.50	3.50	3.70	4.50	4.00	3.75
95.12	24	3.50	3.50	3.60	4.50	4.00	3.75
95.13	25	3.50	3.50	3.50	4.50	4.00	3.75
95.14	26	3.50	3.50	3.50	4.50	4.00	3.75
95.15	27	3.50	3.50	3.50	4.50	4.00	3.75
95.16	28	3.50	3.50	3.50	4.50	4.00	3.75
95.17	29	3.50	3.50	3.50	4.50	4.00	3.75
95.18	30 or more	3.50	3.50	3.50	4.50	4.00	3.75

95.19    (c) (d) The actuarial valuation must use the applicable following payroll growth
95.20assumption for calculating the amortization requirement for the unfunded actuarial
95.21accrued liability where the amortization retirement is calculated as a level percentage
95.22of an increasing payroll:

95.23	plan	payroll growth assumption
95.24 95.25	general state employees retirement plan of the Minnesota State Retirement System	3.75%
95.26	correctional state employees retirement plan	3.75
95.27	State Patrol retirement plan	3.75
95.28	judges retirement plan	3.00
95.29 95.30	general employees retirement plan of the Public Employees Retirement Association	3.75
95.31	public employees police and fire retirement plan	3.75
95.32	local government correctional service retirement plan	3.75
95.33	teachers retirement plan	3.75
95.34	Duluth teachers retirement plan	3.50
95.35	St. Paul teachers retirement plan	4.00

95.36    (d) (e) The assumptions set forth in paragraphs (b) (c) and (c) (d) continue to apply,
95.37unless a different salary assumption or a different payroll increase assumption:
95.38    (1) has been proposed by the governing board of the applicable retirement plan;
95.39    (2) is accompanied by the concurring recommendation of the actuary retained under
95.40section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the
95.41most recent actuarial valuation report if section 356.214 does not apply; and
96.1    (3) has been approved or deemed approved under subdivision 18.
96.2EFFECTIVE DATE.This section is effective June 30, 2014, and applies to
96.3actuarial valuation reports prepared on or after that date.

96.4    Sec. 2. REPEALER.
96.5Minnesota Statutes 2012, section 356.415, subdivision 3, is repealed.
96.6EFFECTIVE DATE.This section is effective June 30, 2014, and applies to
96.7actuarial valuation reports prepared on or after that date.


96.10    Section 1. Minnesota Statutes 2013 Supplement, section 354A.27, subdivision 6a,
96.11is amended to read:
96.12    Subd. 6a. Postretirement adjustment transition. (a) If the funded ratio of the
96.13retirement plan based on the actuarial value of assets is at least 90 percent as reported in
96.14the two most recent actuarial valuation valuations prepared under sections 356.214 and
96.15356.215 , this subdivision expires and subsequent postretirement adjustments are governed
96.16by subdivision 7.
96.17(b) Each annuity or benefit recipient of the retirement plan who has been receiving
96.18that annuity or benefit for at least 12 months as of the applicable January 1 is eligible to
96.19receive a postretirement adjustment of one percent, payable on January 1.
96.20EFFECTIVE DATE.(a) This section is voided if Minnesota Statutes 2013
96.21Supplement, section 354A.27, subdivision 6a, is repealed by action of the 2014 legislature.
96.22If paragraph (a) does not apply, this section is effective July 1, 2015.

96.23    Sec. 2. Minnesota Statutes 2012, section 354A.29, subdivision 8, is amended to read:
96.24    Subd. 8. Calculation of postretirement adjustments; transitional provision. (a)
96.25For purposes of computing postretirement adjustments for eligible benefit recipients of
96.26the St. Paul Teachers Retirement Fund Association, the accrued liability funding ratio
96.27based on the actuarial value of assets of the plan as determined by the two most recent
96.28actuarial valuation valuations prepared under sections 356.214 and 356.215 determines
96.29the postretirement increase, as follows:

97.1		Funding ratio	Postretirement increase
97.2		Less than 80 percent	1 percent
97.3 97.4		At least 80 percent but less than90 percent	2 percent

97.5(b) The amount determined under paragraph (a) is the full postretirement increase
97.6to be applied as a permanent increase to the regular payment of each eligible member
97.7on January 1 of the next calendar year. For any eligible member whose effective date
97.8of benefit commencement occurred during the calendar year before the postretirement
97.9increase is applied, the full increase amount must be prorated on the basis of whole
97.10calendar quarters in benefit payment status in the calendar year prior to the January 1 on
97.11which the postretirement increase is applied, calculated to the third decimal place.
97.12(c) If the accrued liability funding ratio based on the actuarial value of assets is at
97.13least 90 percent in two consecutive actuarial valuations, this subdivision expires and
97.14subsequent postretirement increases must be paid as specified in subdivision 9.
97.15EFFECTIVE DATE.This section is effective July 1, 2015.

97.16    Sec. 3. Minnesota Statutes 2013 Supplement, section 356.415, subdivision 1a, is
97.17amended to read:
97.18    Subd. 1a. Annual postretirement adjustments; Minnesota State Retirement
97.19System plans other than State Patrol retirement plan. (a) Retirement annuity, disability
97.20benefit, or survivor benefit recipients of the legislators retirement plans, including
97.21constitutional officers as specified in chapter 3A, the general state employees retirement
97.22plan, the correctional state employees retirement plan, the unclassified state employees
97.23retirement program, and the judges retirement plan are entitled to a postretirement
97.24adjustment annually on January 1, as follows:
97.25(1) a postretirement increase of two percent must be applied each year, effective
97.26on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
97.27who has been receiving an annuity or a benefit for at least 18 full months before the
97.28January 1 increase; and
97.29(2) for each annuitant or benefit recipient who has been receiving an annuity or
97.30a benefit for at least six full months, an annual postretirement increase of 1/12 of two
97.31percent for each month that the person has been receiving an annuity or benefit must be
97.32applied, effective January 1, following the calendar year in which the person has been
97.33retired for at least six months, but has been retired for less than 18 months.
97.34(b) The increases provided by this subdivision commence on January 1, 2011.
97.35Increases under this subdivision for the general state employees retirement plan, the
98.1correctional state employees retirement plan, or the judges retirement plan terminate on
98.2December 31 of the calendar year in which the two prior consecutive actuarial valuation
98.3 valuations prepared by the approved actuary under sections 356.214 and 356.215 and the
98.4standards for actuarial work promulgated by the Legislative Commission on Pensions
98.5and Retirement indicates that the market value of assets of the retirement plan equals or
98.6exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases
98.7under subdivision 1 recommence after that date. Increases under this subdivision for
98.8the legislators retirement plan or the elected state officers retirement plan terminate
98.9on December 31 of the calendar year in which the actuarial valuation prepared by the
98.10approved actuary under sections 356.214 and 356.215 and the standards for actuarial work
98.11promulgated by the Legislative Commission on Pensions and Retirement indicates that the
98.12market value of assets of the general state employees retirement plan equals or exceeds
98.1390 percent of the actuarial accrued liability of the retirement plan and increases under
98.14subdivision 1 recommence after that date.
98.15(c) An increase in annuity or benefit payments under this subdivision must be made
98.16automatically unless written notice is filed by the annuitant or benefit recipient with the
98.17executive director of the applicable covered retirement plan requesting that the increase
98.18not be made.
98.19EFFECTIVE DATE.This section is effective July 1, 2014.

98.20    Sec. 4. Minnesota Statutes 2012, section 356.415, subdivision 1d, is amended to read:
98.21    Subd. 1d. Teachers Retirement Association annual postretirement adjustments.
98.22(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers
98.23Retirement Association are entitled to a postretirement adjustment annually on January
98.241, as follows:
98.25(1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;
98.26(2) for January 1, 2013, and each successive January 1 until funding stability is
98.27restored, a postretirement increase of two percent must be applied each year, effective
98.28on January 1, to the monthly annuity or benefit amount of each annuitant or benefit
98.29recipient who has been receiving an annuity or a benefit for at least 18 full months prior
98.30to the January 1 increase;
98.31(3) for January 1, 2013, and each successive January 1 until funding stability is
98.32restored, for each annuitant or benefit recipient who has been receiving an annuity or a
98.33benefit for at least six full months before the January 1 increase, an annual postretirement
98.34increase of 1/12 of two percent for each month the person has been receiving an annuity or
99.1benefit must be applied, effective January 1, for which the person has been retired for at
99.2least six months but less than 18 months;
99.3(4) for each January 1 following the restoration of funding stability, a postretirement
99.4increase of 2.5 percent must be applied each year, effective January 1, to the monthly
99.5annuity or benefit amount of each annuitant or benefit recipient who has been receiving an
99.6annuity or a benefit for at least 18 full months prior to the January 1 increase; and
99.7(5) for each January 1 following the restoration of funding stability, for each
99.8annuitant or benefit recipient who has been receiving an annuity or a benefit for at least
99.9six full months before the January 1 increase, an annual postretirement increase of 1/12
99.10of 2.5 percent for each month the person has been receiving an annuity or benefit must
99.11be applied, effective January 1, for which the person has been retired for at least six
99.12months but less than 18 months.
99.13(b) Funding stability is restored when the market value of assets of the Teachers
99.14Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities
99.15of the Teachers Retirement Association in the two most recent prior actuarial valuation
99.16 valuations prepared under section 356.215 and the standards for actuarial work by the
99.17approved actuary retained by the Teachers Retirement Association under section 356.214.
99.18(c) An increase in annuity or benefit payments under this section must be made
99.19automatically unless written notice is filed by the annuitant or benefit recipient with the
99.20executive director of the Teachers Retirement Association requesting that the increase
99.21not be made.
99.22(d) The retirement annuity payable to a person who retires before becoming eligible
99.23for Social Security benefits and who has elected the optional payment as provided in
99.24section 354.35 must be treated as the sum of a period-certain retirement annuity and a life
99.25retirement annuity for the purposes of any postretirement adjustment. The period-certain
99.26retirement annuity plus the life retirement annuity must be the annuity amount payable
99.27until age 62, 65, or normal retirement age, as selected by the member at retirement, for an
99.28annuity amount payable under section 354.35. A postretirement adjustment granted on
99.29the period-certain retirement annuity must terminate when the period-certain retirement
99.30annuity terminates.
99.31EFFECTIVE DATE.This section is effective July 1, 2015.

99.32    Sec. 5. Minnesota Statutes 2013 Supplement, section 356.415, subdivision 1e, is
99.33amended to read:
99.34    Subd. 1e. Annual postretirement adjustments; State Patrol retirement plan.
99.35(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
100.1retirement plan are entitled to a postretirement adjustment annually on January 1, as
100.2follows:
100.3(1) a postretirement increase of one percent must be applied each year, effective on
100.4January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
100.5has been receiving an annuity or a benefit for at least 18 full months before the January 1
100.6increase; and
100.7(2) for each annuitant or benefit recipient who has been receiving an annuity or a
100.8benefit for at least six full months, an annual postretirement increase of 1/12 of one percent
100.9for each month that the person has been receiving an annuity or benefit must be applied,
100.10effective January 1, following the calendar year in which the person has been retired for at
100.11least six months, but has been retired for less than 18 months.
100.12(b) The increases provided by this subdivision commence on January 1, 2014.
100.13Increases under paragraph (a) for the State Patrol retirement plan terminate on December
100.1431 of the calendar year in which the two prior consecutive actuarial valuation valuations
100.15prepared by the approved actuary under sections 356.214 and 356.215 and the standards
100.16for actuarial work promulgated by the Legislative Commission on Pensions and
100.17Retirement indicates that the market value of assets of the retirement plan equals or
100.18exceeds 85 percent of the actuarial accrued liability of the retirement plan and increases
100.19under paragraph (c) recommence after that date.
100.20(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State
100.21Patrol retirement plan are entitled to a postretirement adjustment annually on January
100.221, as follows:
100.23(1) a postretirement increase of 1.5 percent must be applied each year, effective on
100.24January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
100.25has been receiving an annuity or a benefit for at least 18 full months before the January 1
100.26increase; and
100.27(2) for each annuitant or benefit recipient who has been receiving an annuity or a
100.28benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent
100.29for each month that the person has been receiving an annuity or benefit must be applied,
100.30effective January 1, following the calendar year in which the person has been retired for at
100.31least six months, but has been retired for less than 18 months.
100.32(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on
100.33December 31 of the calendar year in which the two prior consecutive actuarial valuation
100.34 valuations prepared by the approved actuary under sections 356.214 and 356.215 and
100.35the standards for actuarial work adopted by the Legislative Commission on Pensions
100.36and Retirement indicates that the market value of assets of the retirement plan equals or
101.1exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases
101.2under subdivision 1 recommence after that date.
101.3(e) An increase in annuity or benefit payments under this subdivision must be made
101.4automatically unless written notice is filed by the annuitant or benefit recipient with the
101.5executive director of the applicable covered retirement plan requesting that the increase
101.6not be made.
101.7EFFECTIVE DATE.This section is effective July 1, 2014.

101.8    Sec. 6. Minnesota Statutes 2013 Supplement, section 356.415, subdivision 1f, is
101.9amended to read:
101.10    Subd. 1f. Annual postretirement adjustments; Minnesota State Retirement
101.11System judges retirement plan. (a) The increases provided under this subdivision begin
101.12on January 1, 2014, and are in lieu of increases under subdivision 1 or 1a for retirement
101.13annuity, disability benefit, or survivor benefit recipients of the judges retirement plan.
101.14(b) Retirement annuity, disability benefit, or survivor benefit recipients of the
101.15judges retirement plan are entitled to a postretirement adjustment annually on January
101.161, as follows:
101.17(1) a postretirement increase of 1.75 percent must be applied each year, effective
101.18on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
101.19who has been receiving an annuity or a benefit for at least 18 full months before the
101.20January 1 increase; and
101.21(2) for each annuitant or benefit recipient who has been receiving an annuity or a
101.22benefit for at least six full months, an annual postretirement increase of 1/12 of 1.75
101.23percent for each month that the person has been receiving an annuity or benefit must be
101.24applied, effective January 1, following the calendar year in which the person has been
101.25retired for at least six months, but has been retired for less than 18 months.
101.26(c) Increases under this subdivision terminate on December 31 of the calendar
101.27year in which the two prior consecutive actuarial valuation valuations prepared by the
101.28approved actuary under sections 356.214 and 356.215 and the standards for actuarial work
101.29promulgated by the Legislative Commission on Pensions and Retirement indicates that
101.30the market value of assets of the judges retirement plan equals or exceeds 70 percent of
101.31the actuarial accrued liability of the retirement plan. Increases under subdivision 1 or 1a,
101.32whichever is applicable, begin on the January 1 next following that date.
101.33(d) An increase in annuity or benefit payments under this subdivision must be made
101.34automatically unless written notice is filed by the annuitant or benefit recipient with the
102.1executive director of the applicable covered retirement plan requesting that the increase
102.2not be made.
102.3EFFECTIVE DATE.This section is effective July 1, 2014.


102.6    Section 1. Minnesota Statutes 2013 Supplement, section 69.051, subdivision 1a,
102.7is amended to read:
102.8    Subd. 1a. Financial statement. (a) The board of each volunteer firefighters relief
102.9association, as defined in section 424A.001, subdivision 4, that is not required to file a
102.10financial report and audit under subdivision 1 must prepare a detailed statement of the
102.11financial affairs for the preceding fiscal year of the relief association's special and general
102.12funds in the style and form prescribed by the state auditor. The detailed statement must
102.13show:
102.14(1) the sources and amounts of all money received;
102.15(2) all disbursements, accounts payable and accounts receivable;
102.16(3) the amount of money remaining in the treasury;
102.17(4) total assets, including a listing of all investments;
102.18(5) the accrued liabilities; and
102.19(6) all other items necessary to show accurately the revenues and expenditures and
102.20financial position of the relief association.
102.21(b) The detailed financial statement required under paragraph (a) must be certified
102.22by an independent a certified public accountant or by the state auditor or by the auditor or
102.23accountant who regularly examines or audits the financial transactions of the municipality.
102.24In addition to certifying the financial condition of the special and general funds of the relief
102.25association, the accountant or auditor conducting the examination shall give an opinion
102.26as to the condition of the special and general funds of the relief association, and shall
102.27comment upon any exceptions to the report. The independent accountant or auditor must
102.28have at least five years of public accounting, auditing, or similar experience, and must not
102.29be an active, inactive, or retired member of the relief association or the fire department.
102.30(c) The detailed statement required under paragraph (a) must be countersigned by:
102.31(1) the municipal clerk or clerk-treasurer of the municipality; or
102.32(2) where applicable, by the municipal clerk or clerk-treasurer of the largest
102.33municipality in population which contracts with the independent nonprofit firefighting
102.34corporation if the relief association is a subsidiary of an independent nonprofit firefighting
102.35corporation and by the secretary of the independent nonprofit firefighting corporation; or
103.1(3) by the chief financial official of the county in which the volunteer firefighter
103.2relief association is located or primarily located if the relief association is associated with
103.3a fire department that is not located in or associated with an organized municipality.
103.4(d) The volunteer firefighters' relief association board must file the detailed statement
103.5required under paragraph (a) in the relief association office for public inspection and
103.6present it to the governing body of the municipality within 45 days after the close of the
103.7fiscal year, and must submit a copy of the detailed statement to the state auditor within 90
103.8days of the close of the fiscal year.
103.9EFFECTIVE DATE.This section is effective the day following final enactment.

103.10    Sec. 2. Minnesota Statutes 2013 Supplement, section 69.051, subdivision 3, is
103.11amended to read:
103.12    Subd. 3. Report by certain municipalities; exceptions. (a) The chief
103.13administrative officer of each municipality which has an organized fire department but
103.14which does not have a firefighters' relief association governed by section 69.77 or sections
103.15424A.091 to 424A.095 and which is not exempted under paragraph (b) or (c) shall annually
103.16prepare a detailed financial report of the receipts and disbursements by the municipality
103.17for fire protection service during the preceding calendar year on a form prescribed by the
103.18state auditor. The financial report must contain any information which the state auditor
103.19deems necessary to disclose the sources of receipts and the purpose of disbursements for
103.20fire protection service. The financial report must be signed by the municipal clerk or
103.21clerk-treasurer of the municipality. The financial report must be filed by the municipal clerk
103.22or clerk-treasurer with the state auditor on or before July 1 annually. The municipality does
103.23not qualify initially to receive, and is not entitled subsequently to retain, state aid under
103.24this chapter if the financial reporting requirement or the applicable requirements of this
103.25chapter or any other statute or special law have not been complied with or are not fulfilled.
103.26(b) Each municipality that has an organized fire department and provides retirement
103.27coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter
103.28retirement plan under chapter 353G qualifies to have fire state aid transmitted to and
103.29retained in the statewide lump-sum volunteer firefighter retirement fund without filing
103.30a detailed financial report if the executive director of the Public Employees Retirement
103.31Association certifies compliance by the municipality with the requirements of sections
103.32353G.04 and 353G.08, paragraph (e), and certifies conformity by the applicable fire chief
103.33with the requirements of section 353G.07.
103.34(c) Each municipality qualifies to receive fire state aid under this chapter without
103.35filing a financial report under paragraph (a) if the municipality:
104.1(1) has an organized fire department;
104.2(2) does not have a volunteer firefighters relief association directly associated with
104.3its fire department;
104.4(3) does not participate in the statewide lump-sum volunteer firefighter retirement
104.5plan under chapter 353G;
104.6(4) provides retirement coverage to its firefighters through the public employees
104.7police and fire retirement plan under sections 353.63 to 353.68; and
104.8(5) is certified by the executive director of the Public Employees Retirement
104.9Association to the state auditor to have had an employer contribution under section
104.10353.65, subdivision 3, for its firefighters for the immediately prior calendar year equal to
104.11or greater than its fire state aid for the immediately prior calendar year.
104.12EFFECTIVE DATE.This section is effective the day following final enactment
104.13and applies to fire state aid payable on October 1, 2014.

104.14    Sec. 3. Minnesota Statutes 2012, section 356A.06, subdivision 7, is amended to read:
104.15    Subd. 7. Expanded list of authorized investment securities. (a) Authority. A
104.16covered pension plan not described by subdivision 6, paragraph (a), is an expanded list
104.17plan and shall invest its assets as specified in this subdivision. The governing board of an
104.18expanded list plan may select and appoint investment agencies to act for or on its behalf.
104.19    (b) Securities generally; investment forms. An expanded list plan is authorized
104.20to purchase, sell, lend, and exchange the investment securities authorized under this
104.21subdivision, including puts and call options and future contracts traded on a contract
104.22market regulated by a governmental agency or by a financial institution regulated by
104.23a governmental agency. These securities may be owned directly or through shares
104.24in exchange-traded or mutual funds, or as units in commingled trusts, subject to any
104.25limitations specified in this subdivision.
104.26    (c) Government obligations. An expanded list plan is authorized to invest funds in
104.27governmental bonds, notes, bills, mortgages, and other evidences of indebtedness if the
104.28issue is backed by the full faith and credit of the issuer or the issue is rated among the top
104.29four quality rating categories by a nationally recognized rating agency. The obligations in
104.30which funds may be invested under this paragraph are guaranteed or insured issues of:
104.31(1) the United States, one of its agencies, one of its instrumentalities, or an
104.32organization created and regulated by an act of Congress;
104.33(2) the Dominion of Canada or one of its provinces if the principal and interest are
104.34payable in United States dollars;
105.1(3) a state or one of its municipalities, political subdivisions, agencies, or
105.2instrumentalities; and
105.3(4) a United States government-sponsored organization of which the United States is
105.4a member if the principal and interest are payable in United States dollars.
105.5    (d) Investment-grade corporate obligations. An expanded list plan is authorized
105.6to invest funds in bonds, notes, debentures, transportation equipment obligations, or
105.7any other longer term evidences of indebtedness issued or guaranteed by a corporation
105.8organized under the laws of the United States or any of its states, or the Dominion of
105.9Canada or any of its provinces if:
105.10    (1) the principal and interest are payable in United States dollars; and
105.11    (2) the obligations are rated among the top four quality categories by a nationally
105.12recognized rating agency.
105.13(e) Below-investment-grade corporate obligations. An expanded list plan is
105.14authorized to invest in unrated corporate obligations or in corporate obligations that are
105.15not rated among the top four quality categories by a nationally recognized rating agency if:
105.16(1) the aggregate value of these obligations does not exceed five percent of the
105.17covered pension plan's market value;
105.18(2) the covered pension plan's participation is limited to 50 percent of a single
105.19offering subject to this paragraph; and
105.20(3) the covered pension plan's participation is limited to 25 percent of an issuer's
105.21obligations subject to this paragraph.
105.22    (f) Other obligations. (1) An expanded list plan is authorized to invest funds in:
105.23    (i) bankers acceptances and deposit notes if issued by a United States bank that is
105.24rated in the highest four quality categories by a nationally recognized rating agency;
105.25    (ii) certificates of deposit if issued by a United States bank or savings institution
105.26rated in the highest four quality categories by a nationally recognized rating agency or
105.27whose certificates of deposit are fully insured by federal agencies, or if issued by a credit
105.28union in an amount within the limit of the insurance coverage provided by the National
105.29Credit Union Administration;
105.30    (iii) commercial paper if issued by a United States corporation or its Canadian
105.31subsidiary and if rated in the highest two quality categories by a nationally recognized
105.32rating agency;
105.33    (iv) mortgage securities and asset-backed securities if rated in the top four quality
105.34categories by a nationally recognized rating agency;
105.35    (v) repurchase agreements and reverse repurchase agreements if collateralized with
105.36letters of credit or securities authorized in this section;
106.1    (vi) guaranteed investment contracts if issued by an insurance company or a bank
106.2that is rated in the top four quality categories by a nationally recognized rating agency
106.3or alternative guaranteed investment contracts if the underlying assets comply with the
106.4requirements of this subdivision;
106.5    (vii) savings accounts if fully insured by a federal agency; and
106.6    (viii) guaranty fund certificates, surplus notes, or debentures if issued by a domestic
106.7mutual insurance company.
106.8    (2) Sections 16A.58, 16C.03, subdivision 4, and 16C.05 do not apply to certificates
106.9of deposit and collateralization agreements executed by the covered pension plan under
106.10clause (1), item (ii).
106.11    (3) In addition to investments authorized by clause (1), item (iv), an expanded list
106.12plan is authorized to purchase from the Minnesota Housing Finance Agency all or any part
106.13of a pool of residential mortgages, not in default, that has previously been financed by the
106.14issuance of bonds or notes of the agency. The covered pension plan may also enter into
106.15a commitment with the agency, at the time of any issue of bonds or notes, to purchase
106.16at a specified future date, not exceeding 12 years from the date of the issue, the amount
106.17of mortgage loans then outstanding and not in default that have been made or purchased
106.18from the proceeds of the bonds or notes. The covered pension plan may charge reasonable
106.19fees for any such commitment and may agree to purchase the mortgage loans at a price
106.20sufficient to produce a yield to the covered pension plan comparable, in its judgment,
106.21to the yield available on similar mortgage loans at the date of the bonds or notes. The
106.22covered pension plan may also enter into agreements with the agency for the investment
106.23of any portion of the funds of the agency. The agreement must cover the period of the
106.24investment, withdrawal privileges, and any guaranteed rate of return.
106.25    (g) Corporate stocks. An expanded list plan is authorized to invest in stocks or
106.26convertible issues of any corporation organized under the laws of the United States or any
106.27of its states, any corporation organized under the laws of the Dominion of Canada or any
106.28of its provinces, or any corporation listed on an exchange that is regulated by an agency of
106.29the United States or of the Canadian national government.
106.30    An investment in any corporation must not exceed five percent of the total
106.31outstanding shares of that corporation, except that an expanded list plan may hold up
106.32to 20 percent of the shares of a real estate investment trust and up to 20 percent of the
106.33shares of a closed mutual fund.
106.34    (h) Other investments. (1) In addition to the investments authorized in paragraphs
106.35(b) to (g), and subject to the provisions in clause (2), an expanded list plan is authorized
106.36to invest funds in:
107.1    (i) equity and debt investment businesses through participation in limited
107.2partnerships, trusts, private placements, limited liability corporations, limited liability
107.3companies, limited liability partnerships, and corporations;
107.4    (ii) real estate ownership interests or loans secured by mortgages or deeds of trust
107.5or shares of real estate investment trusts, through investment in limited partnerships,
107.6bank-sponsored collective funds, trusts, mortgage participation agreements, and insurance
107.7company commingled accounts, including separate accounts;
107.8    (iii) resource investments through limited partnerships, trusts, private placements,
107.9limited liability corporations, limited liability companies, limited liability partnerships,
107.10and corporations; and
107.11    (iv) international securities.
107.12    (2) The investments authorized in clause (1) must conform to the following
107.13provisions:
107.14    (i) the aggregate value of all investments made under clause (1), items (i), (ii), and
107.15(iii), may not exceed 35 percent of the market value of the fund for which the expanded
107.16list plan is investing;
107.17    (ii) there must be at least four unrelated owners of the investment other than the
107.18expanded list plan for investments made under clause (1), item (i), (ii), or (iii);
107.19    (iii) the expanded list plan's participation in an investment vehicle is limited to 20
107.20percent thereof for investments made under clause (1), item (i), (ii), or (iii);
107.21    (iv) the expanded list plan's participation in a limited partnership does not include a
107.22general partnership interest or other interest involving general liability. The expanded list
107.23plan may not engage in any activity as a limited partner which creates general liability; and
107.24(v) the aggregate value of all unrated obligations and obligations that are not rated
107.25among the top four quality categories by a nationally recognized rating agency authorized
107.26by paragraph (f) and clause (1), item (iv), must not exceed five percent of the covered
107.27plan's market value; and
107.28(vi) for volunteer firefighter relief associations, emerging market equity and
107.29international debt investments authorized under clause (1), item (iv), must not exceed 15
107.30percent of the association's special fund market value.
107.31(i) Supplemental plan investments. The governing body of an expanded list plan
107.32may certify assets to the State Board of Investment for investment under section 11A.17.
107.33(j) Asset mix limitations. The aggregate value of an expanded list plan's
107.34investments under paragraphs (g) and (h) and equity investments under paragraph (i),
107.35regardless of the form in which these investments are held, must not exceed 85 percent of
107.36the covered plan's market value.
108.1EFFECTIVE DATE.This section is effective the day following final enactment.

108.2    Sec. 4. Minnesota Statutes 2012, section 356A.06, subdivision 7a, is amended to read:
108.3    Subd. 7a. Restrictions. Any agreement to lend securities must be concurrently
108.4collateralized with cash or securities with a market value of not less than 100 percent of the
108.5market value of the loaned securities at the time of the agreement. For a covered pension
108.6authorized to purchase put and call options and futures contracts under subdivision 7, any
108.7agreement for put and call options and futures contracts may only be entered into with a
108.8fully offsetting amount of cash or securities. Only securities authorized by this section,
108.9excluding those under subdivision 7, paragraph (g) (h), clause (1), items (i) to (iv), may be
108.10accepted as collateral or offsetting securities.
108.11EFFECTIVE DATE.This section is effective the day following final enactment.

108.12    Sec. 5. Minnesota Statutes 2012, section 424A.015, is amended by adding a
108.13subdivision to read:
108.14    Subd. 6. Governing benefit plan provisions. A service pension or ancillary benefit
108.15payable under this chapter is governed by and must be calculated under the general statute,
108.16special law, relief association articles of incorporation, and relief association bylaw
108.17provisions applicable on the date on which the member separated from active service with
108.18the fire department and active membership in the relief association.
108.19EFFECTIVE DATE.This section is effective the day following final enactment.

108.20    Sec. 6. Minnesota Statutes 2012, section 424A.016, subdivision 4, is amended to read:
108.21    Subd. 4. Individual accounts. (a) An individual account must be established for
108.22each firefighter who is a member of the relief association.
108.23(b) To each individual active member account must be credited an equal share of:
108.24(1) any amounts of fire state aid received by the relief association;
108.25(2) any amounts of municipal contributions to the relief association raised from
108.26levies on real estate or from other available municipal revenue sources exclusive of fire
108.27state aid; and
108.28(3) any amounts equal to the share of the assets of the special fund to the credit of:
108.29(i) any former member who terminated active service with the fire department to
108.30which the relief association is associated before meeting the minimum service requirement
108.31provided for in subdivision 2, paragraph (b), and has not returned to active service with
108.32the fire department for a period no shorter than five years; or
109.1(ii) any retired member who retired before obtaining a full nonforfeitable interest in
109.2the amounts credited to the individual member account under subdivision 2, paragraph
109.3(b), and any applicable provision of the bylaws of the relief association. In addition, any
109.4investment return on the assets of the special fund must be credited in proportion to the
109.5share of the assets of the special fund to the credit of each individual active member
109.6account. Administrative expenses of the relief association payable from the special
109.7fund may be deducted from individual accounts in a manner specified in the bylaws of
109.8the relief association.
109.9(c) If the bylaws so permit and as the bylaws define, the relief association may credit
109.10any investment return on the assets of the special fund to the accounts of inactive members.
109.11(d) Amounts to be credited to individual accounts must be allocated uniformly
109.12for all years of active service and allocations must be made for all years of service,
109.13except for caps on service credit if so provided in the bylaws of the relief association.
109.14Amounts forfeited under paragraph (b), clause (3), before a resumption of active service
109.15and membership under section 424A.01, subdivision 6, remain forfeited and may not be
109.16reinstated upon the resumption of active service and membership. The allocation method
109.17may utilize monthly proration for fractional years of service, as the bylaws or articles of
109.18incorporation of the relief association so provide. The bylaws or articles of incorporation
109.19may define a "month," but the definition must require a calendar month to have at least 16
109.20days of active service. If the bylaws or articles of incorporation do not define a "month," a
109.21"month" is a completed calendar month of active service measured from the member's
109.22date of entry to the same date in the subsequent month.
109.23(e) At the time of retirement under subdivision 2 and any applicable provision of the
109.24bylaws of the relief association, a retiring member is entitled to that portion of the assets
109.25of the special fund to the credit of the member in the individual member account which is
109.26nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief
109.27association based on the number of years of service to the credit of the retiring member.
109.28(f) Annually, the secretary of the relief association shall certify the individual
109.29account allocations to the state auditor at the same time that the annual financial statement
109.30or financial report and audit of the relief association, whichever applies, is due under
109.31section 69.051.
109.32EFFECTIVE DATE.This section is effective the day following final enactment.

109.33    Sec. 7. Minnesota Statutes 2013 Supplement, section 424A.016, subdivision 6, is
109.34amended to read:
110.1    Subd. 6. Deferred service pensions. (a) A member of a relief association is entitled
110.2to a deferred service pension if the member separates from active service and membership
110.3and has completed the minimum service and membership requirements in subdivision 2.
110.4The requirement that a member separate from active service and membership is waived
110.5for persons who have discontinued their volunteer firefighter duties and who are employed
110.6on a full-time basis under section 424A.015, subdivision 1.
110.7    (b) The deferred service pension is payable when the former member reaches at
110.8least age 50, or at least the minimum age specified in the bylaws governing the relief
110.9association if that age is greater than age 50, and when the former member makes a valid
110.10written application.
110.11    (c) A defined contribution relief association may, if its governing bylaws so provide,
110.12credit interest or additional investment performance on the deferred lump-sum service
110.13pension during the period of deferral. If provided for in the bylaws, the interest must be
110.14paid:
110.15(1) at the investment performance rate actually earned on that portion of the assets
110.16if the deferred benefit amount is invested by the relief association in a separate account
110.17established and maintained by the relief association;
110.18(2) at the investment performance rate actually earned on that portion of the assets
110.19if the deferred benefit amount is invested in a separate investment vehicle held by the
110.20relief association; or
110.21(3) at the investment return on the assets of the special fund of the defined contribution
110.22volunteer firefighter relief association in proportion to the share of the assets of the special
110.23fund to the credit of each individual deferred member account through the accounting date
110.24on which the investment return is recognized by and credited to the special fund.
110.25    (d) Unless the bylaws of a relief association that has elected to pay interest or
110.26additional investment performance on deferred lump-sum service pensions under
110.27paragraph (c) specifies a different interest or additional investment performance method,
110.28including the interest or additional investment performance period starting date and ending
110.29date, the interest or additional investment performance on a deferred service pension
110.30is creditable as follows:
110.31(1) for a relief association that has elected to pay interest or additional investment
110.32performance under paragraph (c), clause (1) or (3), beginning on the date that the
110.33member separates from active service and membership and ending on the accounting
110.34date immediately before the deferred member commences receipt of the deferred service
110.35pension; or
111.1(2) for a relief association that has elected to pay interest or additional investment
111.2performance under paragraph (c), clause (2), beginning on the date that the member
111.3separates from active service and membership and ending on the date that the separate
111.4investment vehicle is valued immediately before the date on which the deferred member
111.5commences receipt of the deferred service pension.
111.6(e) The deferred service pension is governed by and must be calculated under
111.7the general statute, special law, relief association articles of incorporation, and relief
111.8association bylaw provisions applicable on the date on which the member separated from
111.9active service with the fire department and active membership in the relief association.
111.10EFFECTIVE DATE.This section is effective the day following final enactment.

111.11    Sec. 8. Minnesota Statutes 2012, section 424A.016, subdivision 7, is amended to read:
111.12    Subd. 7. Limitation on ancillary benefits. (a) A defined contribution relief
111.13association may only pay an ancillary benefit which would constitute an authorized
111.14disbursement as specified in section 424A.05. The ancillary benefit for active members
111.15must equal the vested and nonvested amount of the individual account of the member.
111.16(b) For deferred members, the ancillary benefit must equal the vested amount of
111.17the individual account of the member. For the recipient of installment payments of a
111.18service pension, the ancillary benefit must equal the remaining balance in the individual
111.19account of the recipient.
111.20(c) If the bylaws permit and as defined by the bylaws, the relief association may pay
111.21an ancillary benefit to, or on behalf of, a member who is not active or deferred.
111.22(d)(1) If a survivor or death benefit is payable under the articles of incorporation or
111.23bylaws, the benefit must be paid:
111.24(i) as a survivor benefit to the surviving spouse of the deceased firefighter;
111.25(ii) as a survivor benefit to the surviving children of the deceased firefighter if no
111.26surviving spouse;
111.27(iii) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
111.28surviving spouse or surviving children; or
111.29(iv) as a death benefit to the estate of the deceased active or deferred firefighter if no
111.30surviving spouse, no surviving children, and no beneficiary designated.
111.31(2) If there are no surviving children, the surviving spouse may waive, in writing,
111.32wholly or partially, the spouse's entitlement to a survivor benefit.
111.33(d) (e) For purposes of this section, for a defined contribution volunteer fire relief
111.34association, a trust created under chapter 501B may be a designated beneficiary. If a trust
111.35payable to the surviving children organized under chapter 501B has been established as
112.1authorized by this section and there is no surviving spouse, the survivor benefit may be
112.2paid to the trust, notwithstanding the requirements of this section.
112.3EFFECTIVE DATE.This section is effective the day following final enactment.

112.4    Sec. 9. Minnesota Statutes 2013 Supplement, section 424A.02, subdivision 3, is
112.5amended to read:
112.6    Subd. 3. Flexible service pension maximums. (a) Annually on or before August
112.71 as part of the certification of the financial requirements and minimum municipal
112.8obligation determined under section 424A.092, subdivision 4, or 424A.093, subdivision
112.95 , as applicable, the secretary or some other official of the relief association designated
112.10in the bylaws of each defined benefit relief association shall calculate and certify to the
112.11governing body of the applicable qualified municipality the average amount of available
112.12financing per active covered firefighter for the most recent three-year period. The amount
112.13of available financing includes any amounts of fire state aid received or receivable by the
112.14relief association, any amounts of municipal contributions to the relief association raised
112.15from levies on real estate or from other available revenue sources exclusive of fire state
112.16aid, and one-tenth of the amount of assets in excess of the accrued liabilities of the relief
112.17association calculated under section 424A.092, subdivision 2; 424A.093, subdivisions 2
112.18and 4; or 424A.094, subdivision 2, if any.
112.19    (b) The maximum service pension which the defined benefit relief association has
112.20authority to provide for in its bylaws for payment to a member retiring after the calculation
112.21date when the minimum age and service requirements specified in subdivision 1 are met
112.22must be determined using the table in paragraph (c) or (d), whichever applies.
112.23    (c) For a defined benefit relief association where the governing bylaws provide for
112.24a monthly service pension to a retiring member, the maximum monthly service pension
112.25amount per month for each year of service credited that may be provided for in the bylaws
112.26is the greater of the service pension amount provided for in the bylaws on the date of the
112.27calculation of the average amount of the available financing per active covered firefighter
112.28or the maximum service pension figure corresponding to the average amount of available
112.29financing per active covered firefighter:

112.30 112.31 112.32	Minimum Average Amount of Available Financing per Firefighter		Maximum Service Pension Amount Payable per Month for Each Year of Service
112.33	$ ...		$ .25
112.34	41		.50
112.35	81		1.00
112.36	122		1.50
113.1	162		2.00
113.2	203		2.50
113.3	243		3.00
113.4	284		3.50
113.5	324		4.00
113.6	365		4.50
113.7	405		5.00
113.8	486		6.00
113.9	567		7.00
113.10	648		8.00
113.11	729		9.00
113.12	810		10.00
113.13	891		11.00
113.14	972		12.00
113.15	1053		13.00
113.16	1134		14.00
113.17	1215		15.00
113.18	1296		16.00
113.19	1377		17.00
113.20	1458		18.00
113.21	1539		19.00
113.22	1620		20.00
113.23	1701		21.00
113.24	1782		22.00
113.25	1823		22.50
113.26	1863		23.00
113.27	1944		24.00
113.28	2025		25.00
113.29	2106		26.00
113.30	2187		27.00
113.31	2268		28.00
113.32	2349		29.00
113.33	2430		30.00
113.34	2511		31.00
113.35	2592		32.00
113.36	2673		33.00
113.37	2754		34.00
113.38	2834		35.00
113.39	2916		36.00
113.40	2997		37.00
113.41	3078		38.00
113.42	3159		39.00
113.43	3240		40.00
114.1	3321		41.00
114.2	3402		42.00
114.3	3483		43.00
114.4	3564		44.00
114.5	3645		45.00
114.6	3726		46.00
114.7	3807		47.00
114.8	3888		48.00
114.9	3969		49.00
114.10	4050		50.00
114.11	4131		51.00
114.12	4212		52.00
114.13	4293		53.00
114.14	4374		54.00
114.15	4455		55.00
114.16	4536		56.00
114.17	Effective beginning December 31, 2008
114.18	4617		57.00
114.19	4698		58.00
114.20	4779		59.00
114.21	4860		60.00
114.22	4941		61.00
114.23	5022		62.00
114.24	5103		63.00
114.25	5184		64.00
114.26	5265		65.00
114.27	Effective beginning December 31, 2009
114.28	5346		66.00
114.29	5427		67.00
114.30	5508		68.00
114.31	5589		69.00
114.32	5670		70.00
114.33	5751		71.00
114.34	5832		72.00
114.35	5913		73.00
114.36	5994		74.00
114.37	Effective beginning December 31, 2010
114.38	6075		75.00
114.39	6156		76.00
114.40	6237		77.00
114.41	6318		78.00
114.42	6399		79.00
114.43	6480		80.00
115.1	6561		81.00
115.2	6642		82.00
115.3	6723		83.00
115.4	Effective beginning December 31, 2011
115.5	6804		84.00
115.6	6885		85.00
115.7	6966		86.00
115.8	7047		87.00
115.9	7128		88.00
115.10	7209		89.00
115.11	7290		90.00
115.12	7371		91.00
115.13	7452		92.00
115.14	Effective beginning December 31, 2012
115.15	7533		93.00
115.16	7614		94.00
115.17	7695		95.00
115.18	7776		96.00
115.19	7857		97.00
115.20	7938		98.00
115.21	8019		99.00
115.22	8100		100.00
115.23	any amount in excess of
115.24	8100		100.00

115.25    (d) For a defined benefit relief association in which the governing bylaws provide
115.26for a lump-sum service pension to a retiring member, the maximum lump-sum service
115.27pension amount for each year of service credited that may be provided for in the bylaws is
115.28the greater of the service pension amount provided for in the bylaws on the date of the
115.29calculation of the average amount of the available financing per active covered firefighter
115.30or the maximum service pension figure corresponding to the average amount of available
115.31financing per active covered firefighter for the applicable specified period:

115.32 115.33 115.34	Minimum Average Amount of Available Financing per Firefighter		Maximum Lump-Sum Service Pension Amount Payable for Each Year of Service
115.35	$ ...		$ 10
115.36	11		20
115.37	16		30
115.38	23		40
115.39	27		50
115.40	32		60
115.41	43		80
115.42	54		100
116.1	65		120
116.2	77		140
116.3	86		160
116.4	97		180
116.5	108		200
116.6	131		240
116.7	151		280
116.8	173		320
116.9	194		360
116.10	216		400
116.11	239		440
116.12	259		480
116.13	281		520
116.14	302		560
116.15	324		600
116.16	347		640
116.17	367		680
116.18	389		720
116.19	410		760
116.20	432		800
116.21	486		900
116.22	540		1000
116.23	594		1100
116.24	648		1200
116.25	702		1300
116.26	756		1400
116.27	810		1500
116.28	864		1600
116.29	918		1700
116.30	972		1800
116.31	1026		1900
116.32	1080		2000
116.33	1134		2100
116.34	1188		2200
116.35	1242		2300
116.36	1296		2400
116.37	1350		2500
116.38	1404		2600
116.39	1458		2700
116.40	1512		2800
116.41	1566		2900
116.42	1620		3000
116.43	1672		3100
117.1	1726		3200
117.2	1753		3250
117.3	1780		3300
117.4	1820		3375
117.5	1834		3400
117.6	1888		3500
117.7	1942		3600
117.8	1996		3700
117.9	2023		3750
117.10	2050		3800
117.11	2104		3900
117.12	2158		4000
117.13	2212		4100
117.14	2265		4200
117.15	2319		4300
117.16	2373		4400
117.17	2427		4500
117.18	2481		4600
117.19	2535		4700
117.20	2589		4800
117.21	2643		4900
117.22	2697		5000
117.23	2751		5100
117.24	2805		5200
117.25	2859		5300
117.26	2913		5400
117.27	2967		5500
117.28	3021		5600
117.29	3075		5700
117.30	3129		5800
117.31	3183		5900
117.32	3237		6000
117.33	3291		6100
117.34	3345		6200
117.35	3399		6300
117.36	3453		6400
117.37	3507		6500
117.38	3561		6600
117.39	3615		6700
117.40	3669		6800
117.41	3723		6900
117.42	3777		7000
117.43	3831		7100
118.1	3885		7200
118.2	3939		7300
118.3	3993		7400
118.4	4047		7500
118.5	Effective beginning December 31, 2008
118.6	4101		7600
118.7	4155		7700
118.8	4209		7800
118.9	4263		7900
118.10	4317		8000
118.11	4371		8100
118.12	4425		8200
118.13	4479		8300
118.14	Effective beginning December 31, 2009
118.15	4533		8400
118.16	4587		8500
118.17	4641		8600
118.18	4695		8700
118.19	4749		8800
118.20	4803		8900
118.21	4857		9000
118.22	4911		9100
118.23	Effective beginning December 31, 2010
118.24	4965		9200
118.25	5019		9300
118.26	5073		9400
118.27	5127		9500
118.28	5181		9600
118.29	5235		9700
118.30	5289		9800
118.31	5343		9900
118.32	5397		10,000
118.33	any amount in excess of
118.34	5397		10,000

118.35    (e) For a defined benefit relief association in which the governing bylaws provide
118.36for a monthly benefit service pension as an alternative form of service pension payment
118.37to a lump-sum service pension, the maximum service pension amount for each pension
118.38payment type must be determined using the applicable table contained in this subdivision.
118.39    (f) If a defined benefit relief association establishes a service pension in compliance
118.40with the applicable maximum contained in paragraph (c) or (d) and the minimum average
118.41amount of available financing per active covered firefighter is subsequently reduced
118.42because of a reduction in fire state aid or because of an increase in the number of active
119.1firefighters, the relief association may continue to provide the prior service pension
119.2amount specified in its bylaws, but may not increase the service pension amount until
119.3the minimum average amount of available financing per firefighter under the table in
119.4paragraph (c) or (d), whichever applies, permits.
119.5    (g) No defined benefit relief association is authorized to provide a service pension in
119.6an amount greater than the largest applicable flexible service pension maximum amount
119.7even if the amount of available financing per firefighter is greater than the financing
119.8amount associated with the largest applicable flexible service pension maximum.
119.9(h) The method of calculating service pensions must be applied uniformly for all
119.10years of active service. Credit must be given for all years of active service except for caps
119.11on service credit if so provided in the bylaws of the relief association.
119.12EFFECTIVE DATE.This section is effective the day following final enactment.

119.13    Sec. 10. Minnesota Statutes 2013 Supplement, section 424A.02, subdivision 7, is
119.14amended to read:
119.15    Subd. 7. Deferred service pensions. (a) A member of a defined benefit relief
119.16association is entitled to a deferred service pension if the member separates from active
119.17service and membership and has completed the minimum service and membership
119.18requirements in subdivision 1. The requirement that a member separate from active service
119.19and membership is waived for persons who have discontinued their volunteer firefighter
119.20duties and who are employed on a full-time basis under section 424A.015, subdivision 1.
119.21    (b) The deferred service pension is payable when the former member reaches at
119.22least age 50, or at least the minimum age specified in the bylaws governing the relief
119.23association if that age is greater than age 50, and when the former member makes a valid
119.24written application.
119.25    (c) A defined benefit relief association that provides a lump-sum service pension
119.26governed by subdivision 3 may, when its governing bylaws so provide, pay interest on the
119.27deferred lump-sum service pension during the period of deferral. If provided for in the
119.28bylaws, interest must be paid in one of the following manners:
119.29    (1) at the investment performance rate actually earned on that portion of the assets
119.30if the deferred benefit amount is invested by the relief association in a separate account
119.31established and maintained by the relief association;
119.32(2) at the investment performance rate actually earned on that portion of the assets
119.33if the deferred benefit amount is invested in a separate investment vehicle held by the
119.34relief association; or
120.1    (3) at an interest rate of up to five percent, compounded annually, as set by the
120.2board of trustees.
120.3(d) Any change in the interest rate set by the board of directors trustees under
120.4paragraph (c), clause (3), must be ratified by the governing body of the municipality
120.5served by the fire department to which the relief association is directly associated, or by
120.6the independent nonprofit firefighting corporation, as applicable.
120.7    (e) Interest under paragraph (c), clause (3), is payable beginning on the January 1
120.8next following the date on which the deferred service pension interest rate as set by the
120.9board of trustees was ratified by the governing body of the municipality served by the fire
120.10department to which the relief association is directly associated, or by the independent
120.11nonprofit firefighting corporation, as applicable.
120.12    (f) Unless the bylaws of a relief association that has elected to pay interest or
120.13additional investment performance on deferred lump-sum service pensions under
120.14paragraph (c) specifies a different interest or additional investment performance method,
120.15including the interest or additional investment performance period starting date and ending
120.16date, the interest or additional investment performance on a deferred service pension
120.17is creditable as follows:
120.18(1) for a relief association that has elected to pay interest or additional investment
120.19performance under paragraph (c), clause (1) or (3), beginning on the first day of the
120.20month next following the date on which the member separates from active service and
120.21membership and ending on the last day of the month immediately before the month in
120.22which the deferred member commences receipt of the deferred service pension; or
120.23(2) for a relief association that has elected to pay interest or additional investment
120.24performance under paragraph (c), clause (2), beginning on the date that the member
120.25separates from active service and membership and ending on the date that the separate
120.26investment vehicle is valued immediately before the date on which the deferred member
120.27commences receipt of the deferred service pension.
120.28(g) For a deferred service pension that is transferred to a separate account established
120.29and maintained by the relief association or separate investment vehicle held by the relief
120.30association, the deferred member bears the full investment risk subsequent to transfer and
120.31in calculating the accrued liability of the volunteer firefighters relief association that pays
120.32a lump-sum service pension, the accrued liability for deferred service pensions is equal
120.33to the separate relief association account balance or the fair market value of the separate
120.34investment vehicle held by the relief association.
120.35    (h) The deferred service pension is governed by and must be calculated under
120.36the general statute, special law, relief association articles of incorporation, and relief
121.1association bylaw provisions applicable on the date on which the member separated from
121.2active service with the fire department and active membership in the relief association.
121.3EFFECTIVE DATE.This section is effective the day following final enactment.

121.4    Sec. 11. Minnesota Statutes 2012, section 424A.05, subdivision 3, is amended to read:
121.5    Subd. 3. Authorized disbursements from special fund. Disbursements from the
121.6special fund may not be made for any purpose other than one of the following:
121.7    (1) for the payment of service pensions to retired members of the relief association if
121.8authorized and paid under law and the bylaws governing the relief association;
121.9(2) for the purchase of an annuity for the applicable person under section 424A.015,
121.10subdivision 3, for the transfer of service pension or benefit amounts to the applicable
121.11person's individual retirement account under section 424A.015, subdivision 4, or to the
121.12applicable person's account in the Minnesota deferred compensation plan under section
121.13424A.015, subdivision 5 ;
121.14    (3) for the payment of temporary or permanent disability benefits to disabled
121.15members of the relief association if authorized and paid under law and specified in amount
121.16in the bylaws governing the relief association;
121.17    (4) for the payment of survivor benefits or for the payment of a death benefit to the
121.18estate of the deceased active or deferred firefighter, if authorized and paid under law and
121.19specified in amount in the bylaws governing the relief association;
121.20    (5) for the payment of the fees, dues and assessments to the Minnesota State Fire
121.21Department Association and to the Minnesota Area Relief State Fire Chiefs Association
121.22Coalition in order to entitle relief association members to membership in and the benefits
121.23of these associations or organizations;
121.24(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit
121.25Association, or an insurance company licensed by the state of Minnesota offering casualty
121.26insurance, in order to entitle relief association members to membership in and the benefits
121.27of the association or organization; and
121.28    (7) for the payment of administrative expenses of the relief association as authorized
121.29under section 69.80.
121.30EFFECTIVE DATE.This section is effective the day following final enactment.

121.31    Sec. 12. Minnesota Statutes 2012, section 424A.08, is amended to read:
121.32424A.08 MUNICIPALITY WITHOUT RELIEF ASSOCIATION;
121.33AUTHORIZED DISBURSEMENTS.
122.1(a) Any qualified municipality which is entitled to receive fire state aid but which
122.2has no volunteer firefighters' relief association directly associated with its fire department
122.3and which has no full-time firefighters with retirement coverage by the public employees
122.4police and fire retirement plan shall deposit the fire state aid in a special account
122.5established for that purpose in the municipal treasury. Disbursement from the special
122.6account may not be made for any purpose except:
122.7(1) payment of the fees, dues and assessments to the Minnesota State Fire
122.8Department Association and to the state Volunteer Firefighters' Benefit Association in
122.9order to entitle its firefighters to membership in and the benefits of these state associations;
122.10(2) payment of the cost of purchasing and maintaining needed equipment for the
122.11fire department; and
122.12(3) payment of the cost of construction, acquisition, repair, or maintenance of
122.13buildings or other premises to house the equipment of the fire department.
122.14(b) A qualified municipality which is entitled to receive fire state aid, which has no
122.15volunteer firefighters' relief association directly associated with its fire department, which
122.16does not participate in the voluntary statewide lump-sum volunteer firefighter retirement
122.17plan under chapter 353G, and which has full-time firefighters with retirement coverage
122.18by the public employees police and fire retirement plan may disburse the fire state aid as
122.19provided in paragraph (a), for the payment of the employer contribution requirement with
122.20respect to firefighters covered by the public employees police and fire retirement plan under
122.21section 353.65, subdivision 3, or for a combination of the two types of disbursements.
122.22(c) A municipality that has no volunteer firefighters' relief association directly
122.23associated with it and that participates in the voluntary statewide lump-sum volunteer
122.24firefighter retirement plan under chapter 353G shall transmit any fire state aid that it
122.25receives to the voluntary statewide lump-sum volunteer firefighter retirement fund.
122.26EFFECTIVE DATE.This section is effective the day following final enactment.

122.27    Sec. 13. Minnesota Statutes 2013 Supplement, section 424A.092, subdivision 6,
122.28is amended to read:
122.29    Subd. 6. Municipal ratification for plan amendments. If the special fund of
122.30the relief association does not have a surplus over full funding under subdivision 3,
122.31paragraph (c), clause (5), and if the municipality is required to provide financial support
122.32to the special fund of the relief association under this section, the adoption of or any
122.33amendment to the articles of incorporation or bylaws of a relief association which
122.34increases or otherwise affects the retirement coverage provided by or the service pensions
122.35or retirement benefits payable from the special fund of any relief association to which this
123.1section applies is not effective until it is ratified by the governing body of the municipality
123.2in which the relief association is located served by the fire department to which the
123.3relief association is directly associated or by the independent nonprofit firefighting
123.4corporation, as applicable, and the officers of a relief association shall not seek municipal
123.5ratification prior to preparing and certifying an estimate of the expected increase in the
123.6accrued liability and annual accruing liability of the relief association attributable to the
123.7amendment. If the special fund of the relief association has a surplus over full funding
123.8under subdivision 3, paragraph (c), clause (5), and if the municipality is not required to
123.9provide financial support to the special fund of the relief association under this section,
123.10the relief association may adopt or amend its articles of incorporation or bylaws which
123.11increase or otherwise affect the retirement coverage provided by or the service pensions
123.12or retirement benefits payable from the special fund of the relief association which are
123.13effective without municipal ratification so long as this does not cause the amount of the
123.14resulting increase in the accrued liability of the special fund of the relief association to
123.15exceed 90 percent of the amount of the surplus over full funding reported in the prior year
123.16and this does not result in the financial requirements of the special fund of the relief
123.17association exceeding the expected amount of the future fire state aid to be received by
123.18the relief association as determined by the board of trustees following the preparation
123.19of an estimate of the expected increase in the accrued liability and annual accruing
123.20liability of the relief association attributable to the change. If a relief association adopts or
123.21amends its articles of incorporation or bylaws without municipal ratification under this
123.22subdivision, and, subsequent to the amendment or adoption, the financial requirements
123.23of the special fund of the relief association under this section are such so as to require
123.24financial support from the municipality, the provision which was implemented without
123.25municipal ratification is no longer effective without municipal ratification and any service
123.26pensions or retirement benefits payable after that date may be paid only in accordance with
123.27the articles of incorporation or bylaws as amended or adopted with municipal ratification.
123.28EFFECTIVE DATE.This section is effective the day following final enactment.

123.29    Sec. 14. Minnesota Statutes 2013 Supplement, section 424A.093, subdivision 2,
123.30is amended to read:
123.31    Subd. 2. Determination of actuarial condition and funding costs. A relief
123.32association to which this section applies shall obtain an actuarial valuation showing the
123.33condition of the special fund of the relief association as of December 31, 1978, and at
123.34least as of December 31 every four years thereafter. The valuation shall be prepared in
123.35accordance with the provisions of sections 356.215, subdivision 8, and 356.216 and any
124.1applicable standards for actuarial work established by the Legislative Commission on
124.2Pensions and Retirement, except that the figure for normal cost shall be expressed as a
124.3level dollar amount, and the amortization contribution shall be the level dollar amount
124.4calculated to amortize any current unfunded accrued liability by at least the date of full
124.5funding specified in subdivision 4, clause (b). Each valuation shall be filed with the
124.6governing body of the municipality in which the relief association is located served by the
124.7fire department to which the relief association is directly associated or by the independent
124.8nonprofit firefighting corporation, as applicable, and with the state auditor, not later than
124.9July 1 of the year next following the date as of which the actuarial valuation is prepared.
124.10Any relief association which is operating under a special law which requires that actuarial
124.11valuations be obtained at least every four years and be prepared in accordance with
124.12applicable actuarial standards set forth in statute may continue to have actuarial valuations
124.13made according to the time schedule set forth in the special legislation subject to the
124.14provisions of subdivision 3.
124.15EFFECTIVE DATE.This section is effective the day following final enactment.

124.16    Sec. 15. Minnesota Statutes 2013 Supplement, section 424A.093, subdivision 6,
124.17is amended to read:
124.18    Subd. 6. Municipal ratification for plan amendments. If the special fund of the
124.19relief association does not have a surplus over full funding under subdivision 4, and
124.20if the municipality is required to provide financial support to the special fund of the
124.21relief association under this section, the adoption of or any amendment to the articles of
124.22incorporation or bylaws of a relief association which increases or otherwise affects the
124.23retirement coverage provided by or the service pensions or retirement benefits payable
124.24from the special fund of any relief association to which this section applies is not effective
124.25until it is ratified by the governing body of the municipality in which the relief association
124.26is located served by the fire department to which the relief association is directly associated
124.27or by the independent nonprofit firefighting corporation, as applicable. If the special
124.28fund of the relief association has a surplus over full funding under subdivision 4, and if
124.29the municipality is not required to provide financial support to the special fund of the
124.30relief association under this section, the relief association may adopt or amend its articles
124.31of incorporation or bylaws which increase or otherwise affect the retirement coverage
124.32provided by or the service pensions or retirement benefits payable from the special fund
124.33of the relief association which are effective without municipal ratification so long as this
124.34does not cause the amount of the resulting increase in the accrued liability of the special
124.35fund of the relief association to exceed 90 percent of the amount of the surplus over full
125.1funding reported in the prior year and this does not result in the financial requirements of
125.2the special fund of the relief association exceeding the expected amount of the future fire
125.3state aid to be received by the relief association as determined by the board of trustees
125.4following the preparation of an updated actuarial valuation including the proposed change
125.5or an estimate of the expected actuarial impact of the proposed change prepared by the
125.6actuary of the relief association. If a relief association adopts or amends its articles of
125.7incorporation or bylaws without municipal ratification pursuant to this subdivision, and,
125.8subsequent to the amendment or adoption, the financial requirements of the special fund
125.9of the relief association under this section are such so as to require financial support from
125.10the municipality, the provision which was implemented without municipal ratification is
125.11no longer effective without municipal ratification and any service pensions or retirement
125.12benefits payable after that date may be paid only in accordance with the articles of
125.13incorporation or bylaws as amended or adopted with municipal ratification.
125.14EFFECTIVE DATE.This section is effective the day following final enactment.

125.15    Sec. 16. Minnesota Statutes 2013 Supplement, section 424A.094, subdivision 2,
125.16is amended to read:
125.17    Subd. 2. Determination of actuarial condition and funding costs. Each
125.18independent nonprofit firefighting corporation to which this section applies shall determine
125.19the actuarial condition and the funding costs of the subsidiary relief association using
125.20the following procedure:
125.21(1) An independent nonprofit firefighting corporation which has a subsidiary relief
125.22association which pays a monthly benefit service pension shall procure an actuarial
125.23valuation of the special fund of the subsidiary relief association at the same times and
125.24in the same manner as specified in section 424A.093, subdivisions 2 and 3, and an
125.25independent nonprofit firefighting corporation which has a subsidiary relief association
125.26which pays a lump-sum service pension shall determine the accrued liability of the special
125.27fund of the relief association in accordance with section 424A.092, subdivision 2.
125.28(2) The financial requirements of the special fund of the subsidiary relief association
125.29which pays a monthly benefit service pension shall be determined in the same manner
125.30as specified in section 424A.093, subdivision 4, and the financial requirements of the
125.31special fund of the subsidiary relief association shall be determined in the same manner as
125.32specified in section 424A.092, subdivision 3.
125.33(3) The minimum obligation of the independent nonprofit firefighting corporation on
125.34behalf of the special fund of the subsidiary relief association shall be determined in the
126.1same manner as specified in section 424A.092, subdivision 4, or 424A.093, subdivision 5,
126.2as applicable.
126.3(4) The independent nonprofit firefighting corporation shall appropriate annually
126.4from the income of the corporation an amount at least equal to the minimum obligation
126.5of the independent nonprofit firefighting corporation on behalf of the special fund of
126.6the subsidiary relief association.
126.7EFFECTIVE DATE.This section is effective the day following final enactment.

126.8    Sec. 17. Minnesota Statutes 2013 Supplement, section 424A.10, subdivision 2, is
126.9amended to read:
126.10    Subd. 2. Payment of supplemental benefit. (a) Upon the payment by a volunteer
126.11firefighters' relief association or by the voluntary statewide lump-sum volunteer firefighter
126.12retirement plan of a lump-sum distribution to a qualified recipient, the association must
126.13pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the
126.14contrary, the relief association must pay the supplemental benefit out of its special fund
126.15and the voluntary statewide lump-sum volunteer firefighter retirement plan must pay
126.16the supplemental benefit out of the voluntary statewide lump-sum volunteer firefighter
126.17retirement plan. This benefit is an amount equal to ten percent of the regular lump-sum
126.18distribution that is paid on the basis of the recipient's service as a volunteer firefighter.
126.19In no case may the amount of the supplemental benefit exceed $1,000. A supplemental
126.20benefit under this paragraph may not be paid to a survivor of a deceased active or deferred
126.21volunteer firefighter in that capacity.
126.22    (b) Upon the payment by a relief association or the retirement plan of a lump-sum
126.23survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased
126.24deferred volunteer firefighter, the association must pay a supplemental survivor benefit to
126.25the survivor of the deceased active or deferred volunteer firefighter from the special fund
126.26of the relief association and the retirement plan must pay a supplemental survivor benefit
126.27to the survivor of the deceased active or deferred volunteer firefighter from the retirement
126.28fund if chapter 353G so provides. The amount of the supplemental survivor benefit is 20
126.29percent of the survivor benefit, but not to exceed $2,000.
126.30    (c) For purposes of this section, the term "regular lump-sum distribution" means the
126.31pretax lump-sum distribution excluding any interest that may have been credited during a
126.32volunteer firefighter's period of deferral.
126.33    (d) An individual may receive a supplemental benefit under paragraph (a) or under
126.34paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer
126.35firefighter benefit.
127.1EFFECTIVE DATE.This section is effective the day following final enactment.

127.2    Sec. 18. Minnesota Statutes 2012, section 424B.12, is amended to read:
127.3424B.12 MIXED CONSOLIDATING RELIEF ASSOCIATIONS; BENEFIT
127.4PLAN; FUNDING.
127.5    Subdivision 1. Applicability. This section applies where one or more of the
127.6volunteer firefighters' relief associations involved in the consolidation are defined benefit
127.7relief associations as defined in section 424A.001, subdivision 1b, and one or more of
127.8the volunteer firefighters' relief associations involved in the consolidation are defined
127.9contribution relief associations as defined in section 424A.001, subdivision 1c.
127.10    Subd. 2. Benefit plan. The articles of incorporation or bylaws of the successor
127.11relief association must specify whether the relief association is a defined benefit relief
127.12association or whether the relief association is a defined contribution relief association. If
127.13the successor relief association is a defined benefit relief association, the relief association
127.14benefits must comply with sections 424A.02 and 424B.11, subdivision 1a 424B.10. If
127.15the successor relief association is a defined contribution relief association, the relief
127.16association must comply with sections 424A.016 and 424B.12 424B.11, subdivision 2.
127.17    Subd. 3. Funding. If the successor relief association is a defined benefit relief
127.18association, the relief association funding is governed by section 424B.11 424B.10,
127.19subdivision 2. If the successor relief association is a defined contribution relief association,
127.20the relief association funding is governed by section 424B.12 424B.11, subdivision 3.
127.21EFFECTIVE DATE.This section is effective the day following final enactment.


127.24    Section 1. Minnesota Statutes 2012, section 11A.17, subdivision 1, is amended to read:
127.25    Subdivision 1. Purpose; accounts; continuation. (a) The purpose of the
127.26supplemental investment fund is to provide an investment vehicle for the assets of various
127.27public retirement plans and funds.
127.28(b) The fund consists of eight investment accounts: an income share account, a
127.29growth share account, an international share account, a money market account, a fixed
127.30interest account, a bond market account, a common stock index account, and a volunteer
127.31firefighter account. The state board shall determine and make available investment
127.32accounts within the supplemental investment fund. These accounts shall include an
127.33appropriate array of diversified investment options for participants of the public retirement
127.34plans under subdivision 5.
128.1(c) The assets of the supplemental investment fund is a continuation of the
128.2supplemental retirement fund in existence on January 1, 1980 must be invested by the
128.3state board in types of investments permitted under section 11A.24.
128.4(d) The state board shall make available a volunteer firefighter account for the
128.5voluntary statewide lump-sum volunteer firefighter retirement plan under section 353G.02.
128.6EFFECTIVE DATE.This section is effective July 1, 2014.

128.7    Sec. 2. Minnesota Statutes 2012, section 11A.17, subdivision 9, is amended to read:
128.8    Subd. 9. Valuation of investment shares. (a) The value of investment shares in
128.9the income share account, the growth share account, the international share account,
128.10the bond market account, and the common stock index for each investment account,
128.11excluding a money market account, must be determined by dividing the total market
128.12value of the securities constituting the respective account by the total number of shares
128.13then outstanding in the investment account.
128.14(b) The value of investment shares in the a money market account and the fixed
128.15interest account is must be $1 a share. Terms as to withdrawal schedules will be agreed
128.16upon by the public retirement fund and the state board.
128.17EFFECTIVE DATE.This section is effective July 1, 2014.

128.18    Sec. 3. Minnesota Statutes 2012, section 352.115, subdivision 8, is amended to read:
128.19    Subd. 8. Accrual of annuity. State employees shall apply for an annuity. The
128.20application for an annuity must not be made more than 90 60 days before the time the state
128.21employee is eligible to retire by reason of both age and service requirements or former
128.22state employee elects to begin collecting a retirement annuity. If the director determines an
128.23applicant for annuity has fulfilled the legal requirements for an annuity, the director shall
128.24authorize the annuity payment in accordance with this chapter and payment must be made
128.25as authorized. An annuity shall begin to accrue no earlier than 180 days before the date the
128.26application is filed with the director, but not before the day following the termination of
128.27state service or before the day the employee is eligible to retire by reason of both age and
128.28service requirements. The retirement annuity shall cease with the last payment which had
128.29accrued during the lifetime of the retired employee unless an optional annuity provided in
128.30section 352.116, subdivision 3, had been selected and had become payable. The joint and
128.31last survivor annuity shall cease with the last payment received by the survivor during
128.32the lifetime of the survivor. If a retired employee had not selected an optional annuity, or
128.33a survivor annuity is not payable under the option, and a spouse survives, the spouse is
129.1entitled only to the annuity for the calendar month in which the retired employee died.
129.2If an optional annuity is payable after the death of the retired employee, the survivor is
129.3entitled to the annuity for the calendar month in which the retired employee died.
129.4EFFECTIVE DATE.This section is effective July 1, 2014.

129.5    Sec. 4. Minnesota Statutes 2012, section 352.115, subdivision 10, is amended to read:
129.6    Subd. 10. Reemployment of annuitant. (a) Except for salary or wages received
129.7as a temporary employee of the legislature during a legislative session, if any retired
129.8employee again becomes entitled to receive salary or wages from any employer who
129.9employs state employees as that term is defined in section 352.01, subdivision 2, in a
129.10position covered by this chapter, the annuity or retirement allowance must cease when the
129.11first of the month following the month that the retired employee has earned an amount
129.12equal to the annual maximum earnings allowable for that age for the continued receipt of
129.13full benefit amounts monthly under the federal old age, survivors, and disability insurance
129.14program as set by the secretary of health and human services under United States Code,
129.15title 42, section 403, in any calendar year. If the retired employee has not yet reached the
129.16minimum age for the receipt of Social Security benefits, the maximum earnings for the
129.17retired employee are equal to the annual maximum earnings allowable for the minimum
129.18age for the receipt of Social Security benefits.
129.19(b) The balance of the annual retirement annuity after cessation must be handled or
129.20disposed of as provided in section 356.47.
129.21(c) The annuity must be resumed when the first of the month following the month
129.22that state service ends, or, if the retired employee is still employed at the beginning of the
129.23next calendar year, at the beginning of that calendar year, and payment must again end
129.24when the retired employee has earned the applicable reemployment earnings maximum
129.25specified in this subdivision. If the retired employee is granted a sick leave without pay,
129.26but not otherwise, the annuity or retirement allowance must be resumed during the period
129.27of sick leave.
129.28(d) No payroll deductions for the retirement fund may be made from the earnings of
129.29a reemployed retired employee.
129.30(e) No change may be made in the monthly amount of an annuity or retirement
129.31allowance because of the reemployment of an annuitant.
129.32(f) If a reemployed annuitant whose annuity is suspended under paragraph (a)
129.33is having insurance premium amounts withheld under section 356.87, subdivision 2,
129.34insurance premium amounts must continue to be withheld and transferred from the
129.35suspended portion of the annuity. The balance of the annual retirement annuity after
130.1cessation, after deduction of the insurance premium amounts, must be treated as specified
130.2in paragraph (b).
130.3(g) If a reemployed annuitant whose annuity is suspended under paragraph (a)
130.4has a former spouse receiving a portion of the annuity allowable under section 518.58,
130.5subdivision 1, the portion payable to the former spouse must continue to be paid.
130.6EFFECTIVE DATE.This section is effective retroactively from January 1, 2014.

130.7    Sec. 5. Minnesota Statutes 2012, section 352.965, subdivision 4, is amended to read:
130.8    Subd. 4. Plan investments. (a) Available investments under the plan may include:
130.9 are those investments chosen by the State Board of Investment under section 356.645 for
130.10the plan.
130.11    (1) shares in the Minnesota supplemental investment fund established in section
130.1211A.17 that are selected to be offered under the plan by the State Board of Investment;
130.13    (2) saving accounts in federally insured financial institutions;
130.14    (3) life insurance contracts, fixed annuity, and variable annuity contracts from
130.15companies that are subject to regulation by the commissioner of commerce;
130.16    (4) investment options from open-end investment companies registered under the
130.17federal Investment Company Act of 1940, United States Code, title 15, sections 80a-1
130.18to 80a-64;
130.19    (5) investment options from a firm that is a registered investment advisor under the
130.20Investment Advisers Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21;
130.21    (6) investment options of a bank as defined in United States Code, title 15, section
130.2280b-2, subsection (a), paragraph (2), or a bank holding company as defined in the Bank
130.23Holding Company Act of 1956, United States Code, title 12, section 1841, subsection
130.24(a), paragraph (1); or
130.25    (7) a combination of clause (1), (2), (3), (4), (5), or (6), as provided by the plan as
130.26specified by the participant.
130.27    (b) All amounts contributed to the deferred compensation plan and all earnings
130.28on those amounts must be held for the exclusive benefit of the plan participants and
130.29beneficiaries. These amounts must be held in trust, in custodial accounts, or in qualifying
130.30annuity contracts as required by federal law in accordance with section 356A.06,
130.31subdivision 1. This subdivision does not authorize an employer contribution, except as
130.32authorized in section 356.24, subdivision 1, paragraph (a), clause (5). The state, political
130.33subdivision, or other employing unit is not responsible for any loss that may result from
130.34investment of the deferred compensation.
131.1EFFECTIVE DATE.This section is effective July 1, 2014.

131.2    Sec. 6. Minnesota Statutes 2012, section 352.965, is amended by adding a subdivision
131.3to read:
131.4    Subd. 4a. Exclusive benefit. All amounts contributed to the deferred compensation
131.5plan and all earnings on those amounts must be held for the exclusive benefit of the plan
131.6participants and beneficiaries. These amounts must be held in trust, in custodial accounts,
131.7or in qualifying annuity contracts as required by federal law in accordance with section
131.8356A.06, subdivision 1.
131.9EFFECTIVE DATE.This section is effective July 1, 2014.

131.10    Sec. 7. Minnesota Statutes 2012, section 352.965, is amended by adding a subdivision
131.11to read:
131.12    Subd. 4b. Employer contribution prohibition. Except as authorized in section
131.13356.24, subdivision 1, clause (5), employer contributions are prohibited.
131.14EFFECTIVE DATE.This section is effective July 1, 2014.

131.15    Sec. 8. Minnesota Statutes 2012, section 352.98, subdivision 2, is amended to read:
131.16    Subd. 2. Contracting authorized. (a) The executive director shall administer
131.17the plan and contract with public and private entities to provide investment services,
131.18record keeping, benefit payments, and other functions necessary for the administration of
131.19the plan. If allowed by
131.20    (b) As specified in section 356.645, the Minnesota State Board of Investment, the
131.21Minnesota State Board of Investment supplemental investment funds may be offered as
131.22 shall determine an appropriate selection of investment options under that shall be offered
131.23by the health care savings plan or plans.
131.24EFFECTIVE DATE.This section is effective July 1, 2014.

131.25    Sec. 9. Minnesota Statutes 2012, section 352D.04, is amended by adding a subdivision
131.26to read:
131.27    Subd. 1a. State Board of Investment selection of investment products. As
131.28specified in section 356.645, the State Board of Investment shall select investment
131.29products to be available to participants in the retirement program provided by this chapter.
131.30EFFECTIVE DATE.This section is effective July 1, 2014.

132.1    Sec. 10. Minnesota Statutes 2012, section 352D.04, is amended by adding a
132.2subdivision to read:
132.3    Subd. 1b. Participant selection of investments. (a) A program participant may
132.4elect to participate in one or more of the investment products made available under the
132.5program by specifying the percentage of the participant's contributions under subdivision
132.62 to be used to purchase shares in the applicable products.
132.7(b) Before making an allocation election, or if the participant fails to specify an
132.8allocation, the executive director shall, on behalf of that participant, purchase shares
132.9in a default investment alternative. The investment alternative must be specified by
132.10the Minnesota State Retirement System Board from the available investment options
132.11authorized under subdivision 1a.
132.12(c) A participant may revise the investment allocation for subsequent purchase of
132.13shares, and a participant or former participant may also change the investment options
132.14selected for all or a portion of shares previously purchased.
132.15(d) Any investment allocation selection authorized under this subdivision, whether
132.16relating to subsequent purchases of new shares or reallocating the existing portfolio,
132.17must be conducted at times and under procedures prescribed by the executive director.
132.18Any allocation or allocation revisions are effective at the end of the most recent United
132.19States investment market day, unless subject to trading restrictions imposed on certain
132.20investment options.
132.21EFFECTIVE DATE.This section is effective July 1, 2014.

132.22    Sec. 11. Minnesota Statutes 2012, section 353.27, subdivision 4, is amended to read:
132.23    Subd. 4. Employer reporting requirements; contributions; member status.
132.24(a) A representative authorized by the head of each department shall deduct employee
132.25contributions from the salary of each public employee who qualifies for membership in
132.26the general employees retirement plan of the Public Employees Retirement Association
132.27or in the public employees police and fire retirement plan under this chapter or chapter
132.28353D or 353E at the rate under section 353.27, 353.65, 353D.03, or 353E.03, whichever is
132.29applicable, that is in effect on the date the salary is paid. The employer representative must
132.30also remit payment in a manner prescribed by the executive director for the aggregate
132.31amount of the employee contributions and the required employer contributions to be
132.32received by the association within 14 calendar days after each pay date. If the payment is
132.33less than the amount required, the employer must pay the shortage amount to the association
132.34and collect reimbursement of any employee contribution shortage paid on behalf of a
132.35member through subsequent payroll withholdings from the wages of the employee.
133.1Payment of shortages in employee contributions and associated employer contributions, if
133.2applicable, must include interest at the rate specified in section 353.28, subdivision 5, if not
133.3received within 30 days following the date the amount was initially due under this section.
133.4(b) The head of each department or the person's designee shall submit for each
133.5pay period to the association a salary deduction report in the format prescribed by the
133.6executive director. The report must be received by the association within 14 calendar
133.7days after each pay date or the employer may be assessed a fine of $5 per calendar day
133.8until the association receives the required data. Data required as part of salary deduction
133.9reporting must include, but are not limited to:
133.10(1) the legal names and Social Security numbers of employees who are members;
133.11(2) the amount of each employee's salary deduction;
133.12(3) the amount of salary defined in section 353.01, subdivision 10, earned in the pay
133.13period from which each deduction was made, including a breakdown of the portion of the
133.14salary that represents overtime pay that the employee was paid for additional hours worked
133.15beyond the regularly scheduled hours, pay for unused compensatory time, and the salary
133.16amount earned by a reemployed annuitant under section 353.37, subdivision 1, or 353.371,
133.17subdivision 1 , or by a disabled member under section 353.33, subdivision 7 or 7a;
133.18(4) the beginning and ending dates of the payroll period covered and the date of
133.19actual payment; and
133.20(5) adjustments or corrections covering past pay periods as authorized by the
133.21executive director.
133.22(c) Employers must furnish the data required for enrollment for each new or
133.23reinstated employee who qualifies for membership in the general employees retirement
133.24plan of the Public Employees Retirement Association or in the public employees police
133.25and fire retirement plan in the format prescribed by the executive director. The required
133.26enrollment data on new members must be submitted to the association prior to or
133.27concurrent with the submission of the initial employee salary deduction. Also, the
133.28employer shall report to the association all member employment status changes, such as
133.29leaves of absence, terminations, and death, and shall report the effective dates of those
133.30changes, on an ongoing basis for the payroll cycle in which they occur. If an employer
133.31fails to comply with the reporting requirements under this paragraph, the executive
133.32director may assess a fine of $25 for each failure if the association staff has notified the
133.33employer of the noncompliance and attempted to obtain the missing data or form from the
133.34employer for a period of more than three months.
133.35(d) The employer shall furnish data, forms, and reports as may be required by
133.36the executive director for proper administration of the retirement system. Before
134.1implementing new or different computerized reporting requirements, the executive
134.2director shall give appropriate advance notice to governmental subdivisions to allow time
134.3for system modifications.
134.4(e) Notwithstanding paragraph (a), the executive director may provide for less
134.5frequent reporting and payments for small employers.
134.6(f) The executive director may establish reporting procedures and methods as
134.7required to review compliance by employers with the salary and contribution reporting
134.8requirements in this chapter. A review of the payroll records of a participating employer
134.9may be conducted by the association on a periodic basis or as a result of concerns known
134.10to exist within a governmental subdivision. An employer under review must extract
134.11requested data and provide records to the association after receiving reasonable advanced
134.12notice. Failure to provide requested information or materials will result in the employer
134.13being liable to the association for any expenses associated with a field audit, which may
134.14include staff salaries, administrative expenses, and travel expenses.
134.15EFFECTIVE DATE.This section is effective January 1, 2015.

134.16    Sec. 12. Minnesota Statutes 2012, section 353.37, is amended by adding a subdivision
134.17to read:
134.18    Subd. 6. Treatment in certain divorce situations. Notwithstanding other
134.19subdivisions of this section, if a reemployed annuitant whose annuity is suspended or
134.20reduced under this section has a former spouse receiving a portion of the annuity under
134.21section 518.58, subdivision 1, the portion payable to the former spouse must not be
134.22suspended or deferred.
134.23EFFECTIVE DATE.This section is effective retroactively from January 1, 2014.

134.24    Sec. 13. Minnesota Statutes 2012, section 353.371, is amended by adding a subdivision
134.25to read:
134.26    Subd. 8. Program expiration. (a) Initial postretirement option employment
134.27agreements must not be entered into after June 30, 2019.
134.28(b) This section expires on June 30, 2024.
134.29EFFECTIVE DATE.This section is effective July 1, 2014.

134.30    Sec. 14. Minnesota Statutes 2013 Supplement, section 353.651, subdivision 4, is
134.31amended to read:
135.1    Subd. 4. Early retirement. (a) A person who becomes a public employees police
135.2and fire retirement plan member after June 30, 2007, or a former member who is reinstated
135.3as a member of the plan after that date, who is at least 50 years of age and is at least
135.4partially vested under section 353.01, subdivision 47, upon the termination of public
135.5service employees police and fire retirement plan membership before July 1, 2014, if the
135.6person is other than a county sheriff or after January 4, 2015, if the person is a county
135.7sheriff is entitled upon application to a retirement annuity equal to the normal annuity
135.8calculated under subdivision 3, reduced by two-tenths of one percent for each month that
135.9the member is under age 55 at the time of retirement.
135.10    (b) Upon the termination of public service employees police and fire retirement
135.11plan membership before July 1, 2014, if the person is other than a county sheriff or
135.12upon the termination of public service before January 5, 2015, if the person is a county
135.13sheriff, any public employees police and fire retirement plan member who first became
135.14a member of the plan before July 1, 2007, and who is not specified in paragraph (a),
135.15upon attaining at least 50 years of age with at least three years of allowable service is
135.16entitled upon application to a retirement annuity equal to the normal annuity calculated
135.17under subdivision 3, reduced by one-tenth of one percent for each month that the member
135.18is under age 55 at the time of retirement.
135.19(c) A person other than a county sheriff who is a member of the public employees
135.20police and fire retirement plan on or after July 1, 2014, or a county sheriff who is a
135.21member of the public employees police and fire retirement plan on or after January 5,
135.222015, and who is at least 50 years old and is at least partially vested under section 353.01,
135.23subdivision 47, and whose benefit effective date is after July 1, 2014, if other than a
135.24county sheriff or after January 4, 2015, if a county sheriff and on or before July 1, 2019, is
135.25entitled upon application to a retirement annuity equal to the normal annuity calculated
135.26under subdivision 3, reduced for each month the member is under age 55 at the time of
135.27retirement by applying a blended monthly rate that is equivalent to the sum of:
135.28(1) one-sixtieth of the annual rate of five percent, prorated for each month the
135.29person's benefit effective date is after July 1, 2014, or after December 31, 2014, whichever
135.30applies; and
135.31(2) one-sixtieth of the annual rate provided under paragraph (a) or (b), whichever
135.32applies, for each month the person's benefit effective date is before July 1, 2019.
135.33(d) A person other than a county sheriff who is a member of the public employees
135.34police and fire retirement plan on or after July 1, 2014, or a county sheriff who is a member
135.35of the public employees police and fire retirement plan on or after January 5, 2015, and
135.36who is at least 50 years old and is at least partially vested under section 353.01, subdivision
136.147 , whose benefit effective date is after July 1, 2019, is entitled, upon application, to a
136.2retirement annuity equal to the normal annuity calculated under subdivision 3, reduced by
136.3five percent annually, prorated for each month that the member is under age 55.
136.4EFFECTIVE DATE.This section is effective the day following final enactment.

136.5    Sec. 15. Minnesota Statutes 2012, section 353D.05, subdivision 1, is amended to read:
136.6    Subdivision 1. Investment. As further specified under this section, employing unit
136.7contributions, after the deduction of an amount for administrative expenses, and individual
136.8participant contributions must be remitted to invested in the participant's account or
136.9accounts in investment products authorized by the association that are made available
136.10for this purpose by the State Board of Investment for investment in the Minnesota
136.11supplemental investment fund established by under section 11A.17 356.645.
136.12EFFECTIVE DATE.This section is effective July 1, 2014.

136.13    Sec. 16. Minnesota Statutes 2012, section 353D.05, is amended by adding a
136.14subdivision to read:
136.15    Subd. 1a. Participant selection of investments. (a) A plan participant may elect
136.16to allocate contributions, made by and on behalf of the participant, in one or more of the
136.17investment products authorized by the association to be made available under the plan,
136.18by specifying the percentage of the participant's contributions to be used to purchase
136.19shares in the authorized products.
136.20(b) If contributions are received before the participant has made an allocation
136.21election, or if the participant fails to specify an allocation, the executive director shall,
136.22on behalf of that participant, purchase shares in a default investment alternative. The
136.23investment option must be specified by the Public Employees Retirement Association board
136.24of trustees from the designated available investment options authorized under this section.
136.25(c) A participant may revise the investment allocation for subsequent purchase of
136.26shares, and a participant or former participant may also change the investment options
136.27selected for all or a portion of shares previously purchased.
136.28(d) Any investment allocation selection authorized under this subdivision, whether
136.29relating to subsequent purchases of new shares or reallocating the existing portfolio, must
136.30be conducted at times and under procedures prescribed by the executive director.
136.31EFFECTIVE DATE.This section is effective July 1, 2014.

136.32    Sec. 17. Minnesota Statutes 2012, section 354.44, subdivision 5, is amended to read:
137.1    Subd. 5. Resumption of teaching service after retirement. (a) Any person who
137.2retired under the provisions of this chapter and has thereafter resumed teaching in any
137.3employer unit to which this chapter applies is eligible to continue to receive payments
137.4in accordance with the annuity except that all or a portion of the annuity payments must
137.5be deferred during the calendar year immediately following the fiscal year in which the
137.6person's salary from the teaching service is in an amount greater than $46,000. The
137.7amount of the annuity deferral is one-half of the salary amount in excess of $46,000 and
137.8must be deducted from the annuity payable for the calendar year immediately following
137.9the fiscal year in which the excess amount was earned.
137.10    (b) If the person is retired for only a fractional part of the fiscal year during the initial
137.11year of retirement, the maximum reemployment salary exempt from triggering a deferral
137.12as specified in this subdivision must be prorated for that fiscal year.
137.13    (c) After a person has reached the Social Security normal retirement age, no deferral
137.14requirement is applicable regardless of the amount of salary.
137.15    (d) The amount of the retirement annuity deferral must be handled or disposed
137.16of as provided in section 356.47.
137.17    (e) For the purpose of this subdivision, salary from teaching service includes all
137.18salary or income earned as a teacher as defined in section 354.05, subdivision 2, paragraph
137.19(a), clause (1). Salary from teaching service also includes, but is not limited to:
137.20    (1) all income for services performed as a consultant or an, independent contractor
137.21for, or third-party supplier, or as a employee of a consultant, independent contractor, or
137.22third-party supplier, to an employer unit covered by the provisions of this chapter; and
137.23    (2) the greater of either the income received or an amount based on the rate paid with
137.24respect to an administrative position, consultant, or independent contractor, or third-party
137.25supplier, or as an employee of a consultant, independent contractor, or third-party supplier,
137.26 in an employer unit with approximately the same number of pupils and at the same level
137.27as the position occupied by the person who resumes teaching service.
137.28(f) Notwithstanding other paragraphs of this subdivision, if the reemployed annuitant
137.29has a former spouse receiving a portion of the annuity under section 518.58, subdivision 1,
137.30the portion payable to the former spouse must not be deferred.
137.31EFFECTIVE DATE.This section is effective July 1, 2014.

137.32    Sec. 18. Minnesota Statutes 2012, section 354.48, subdivision 6a, is amended to read:
137.33    Subd. 6a. Medical adviser; duties. The state commissioner of health or a
137.34licensed physician on the staff of the Department of Health who is designated by the
137.35commissioner is the medical adviser of The executive director may contract with an
138.1accredited independent organization specializing in disability determinations, licensed
138.2physicians, or physicians on the staff of the commissioner of health as designated by the
138.3commissioner, to be the medical advisor to the executive director. The medical adviser
138.4shall designate licensed physicians, licensed chiropractors, or licensed psychologists with
138.5respect to a mental impairment, who shall examine applicants for disability benefits. The
138.6medical adviser shall pass upon all expert reports based on any examinations performed
138.7in order to determine whether a teacher is totally and permanently disabled as defined in
138.8section 354.05, subdivision 14. The medical adviser shall also investigate all health and
138.9medical statements and certificates by or on behalf of a teacher in connection with a
138.10disability benefit, and shall report in writing to the director setting forth any conclusions
138.11and recommendations on all matters referred to the medical adviser.
138.12EFFECTIVE DATE.This section is effective July 1, 2014.

138.13    Sec. 19. Minnesota Statutes 2013 Supplement, section 356.415, subdivision 1c,
138.14is amended to read:
138.15    Subd. 1c. Annual postretirement adjustments; PERA-police and fire. (a)
138.16Retirement annuity, disability benefit, or survivor benefit recipients of the public
138.17employees police and fire retirement plan are entitled to a postretirement adjustment
138.18annually on January 1, until funding stability is restored, as follows:
138.19(1) for each annuitant or benefit recipient whose annuity or benefit effective date is
138.20on or before June 1, 2014, who has been receiving the annuity or benefit for at least 12
138.21full months as of the immediate preceding June 30, an amount equal to one percent in
138.22each year; or
138.23(2) for each annuitant or benefit recipient whose annuity or benefit effective date is
138.24on or before June 1, 2014, who has been receiving the annuity or benefit for at least one
138.25full month, but not less than 11 months, as of the immediate preceding June 30, an amount
138.26equal to 1/12 of one percent for each month of annuity or benefit receipt; and
138.27(3) for each annuitant or benefit recipient whose annuity or benefit effective date is
138.28after June 1, 2014, unless section 26 applies, who will have been receiving an annuity
138.29or benefit for at least 36 full months as of the immediate preceding June 30, an amount
138.30equal to one percent; or
138.31(4) for each annuitant or benefit recipient whose annuity or benefit effective date is
138.32after June 1, 2014, unless section 26 applies, who has been receiving the annuity or benefit
138.33for at least 25 full months, but less than 36 months as of the immediate preceding June 30,
138.34an amount equal to 1/12 of one percent for each full month of annuity or benefit receipt
138.35during the fiscal year in which the annuity or benefit was effective.
139.1(b) Retirement annuity, disability benefit, or survivor benefit recipients of the public
139.2employees police and fire retirement plan are entitled to a postretirement adjustment
139.3annually on each January 1 following the restoration of funding stability as defined under
139.4paragraph (c) and during the continuation of funding stability as defined under paragraph
139.5(c), as follows:
139.6(1) for each annuitant or benefit recipient who has been receiving the annuity or
139.7benefit for at least 36 full months as of the immediate preceding June 30, an amount
139.8equal to the percentage increase in the Consumer Price Index for urban wage earners and
139.9clerical workers all items index published by the Bureau of Labor Statistics of the United
139.10States Department of Labor between the immediate preceding June 30 and the June 30
139.11occurring 12 months previous, but not to exceed 2.5 percent; and
139.12(2) for each annuitant or benefit recipient who has been receiving the annuity
139.13or benefit for at least 25 full months, but less than 36 full months, as of the immediate
139.14preceding June 30, an amount equal to 1/12 of the percentage increase in the Consumer
139.15Price Index for urban wage earners and clerical workers all items index published by
139.16the Bureau of Labor Statistics of the United States Department of Labor between the
139.17immediate preceding June 30 and the June 30 occurring 12 months previous for each full
139.18month of annuity or benefit receipt during the fiscal year in which the annuity or benefit
139.19was effective, but not to exceed 1/12 of 2.5 percent for each full month of annuity or
139.20benefit receipt during the fiscal year in which the annuity or benefit was effective.
139.21(c) Funding stability is restored when the market value of assets of the public
139.22employees police and fire retirement plan equals or exceeds 90 percent of the actuarial
139.23accrued liabilities of the applicable plan in the two most recent consecutive actuarial
139.24valuations prepared under section 356.215 and under the standards for actuarial work of
139.25the Legislative Commission on Pensions and Retirement by the approved actuary retained
139.26by the Public Employees Retirement Association under section 356.214.
139.27(d) After having met the definition of funding stability under paragraph (c), a full
139.28or prorated increase, as provided in paragraph (a), clause (1), (2), (3), or (4), whichever
139.29applies, rather than adjustments under paragraph (b), is again applied in a subsequent year
139.30or years if the market value of assets of the public employees police and fire retirement
139.31plan equals or is less than:
139.32(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
139.33consecutive actuarial valuations; or
139.34(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
139.35recent actuarial valuation.
140.1(e) An increase in annuity or benefit payments under this section must be made
140.2automatically unless written notice is filed by the annuitant or benefit recipient with the
140.3executive director of the Public Employees Retirement Association requesting that the
140.4increase not be made.
140.5EFFECTIVE DATE; EXPIRATION DATE.This section is effective the day
140.6following final enactment and expires on February 2, 2015.

140.7    Sec. 20. Minnesota Statutes 2012, section 356.635, subdivision 6, is amended to read:
140.8    Subd. 6. Eligible retirement plan. (a) An "eligible retirement plan" is:
140.9(1) an individual retirement account under section 408(a) or 408A of the federal
140.10Internal Revenue Code;
140.11(2) an individual retirement annuity plan under section 408(b) of the federal Internal
140.12Revenue Code;
140.13(3) an annuity plan under section 403(a) of the federal Internal Revenue Code;
140.14(4) a qualified trust plan under section 401(a) of the federal Internal Revenue Code
140.15that accepts the distributee's eligible rollover distribution;
140.16(5) an annuity contract under section 403(b) of the federal Internal Revenue Code;
140.17(6) an eligible deferred compensation plan under section 457(b) of the federal
140.18Internal Revenue Code, which is maintained by a state or local government and which
140.19agrees to separately account for the amounts transferred into the plan; or
140.20(7) in the case of an eligible rollover distribution to a nonspousal beneficiary, an
140.21individual account or annuity treated as an inherited individual retirement account under
140.22section 402(c)(11) of the federal Internal Revenue Code.
140.23(b) For distributions of after-tax contributions which are not includable in gross
140.24income, the after-tax portion may be transferred only to an individual retirement account
140.25or annuity described in section 408(a) or (b) of the federal Internal Revenue Code, to a
140.26Roth individual retirement account described in section 408A of the federal Internal
140.27Revenue Code, or to a qualified plan described in either section 401(a) of the federal
140.28Internal Revenue Code or 403(a) to an annuity contract described in section 403(b) of
140.29the federal Internal Revenue Code, that agrees to separately account for the amounts
140.30transferred, including separately accounting for the portion of the distribution which is
140.31includable in gross income and the portion of the distribution which is not includable.
140.32EFFECTIVE DATE.This section is effective the day following final enactment.

141.1    Sec. 21. [356.645] INVESTMENT OF VARIOUS DEFINED CONTRIBUTION
141.2PLAN ASSETS.
141.3The State Board of Investment shall determine the investments to be made available
141.4to plan participants in plans defined in sections 352.965, 352.98, and chapters 352D
141.5and 353D. Investments made available to plan participants must include at least one or
141.6all of the following:
141.7(1) shares in the Minnesota supplemental investment fund established in section
141.811A.17;
141.9(2) saving accounts in federally insured financial institutions;
141.10(3) life insurance contracts, fixed annuity contracts, and variable annuity contracts
141.11from companies that are subject to regulation by the commissioner of commerce;
141.12(4) investment options from open-end investment companies registered under the
141.13federal Investment Company Act of 1940, United States Code, title 15, sections 80a-1
141.14to 80a-64;
141.15(5) investment options from a firm that is a registered investment adviser under
141.16the Investment Advisers Act of 1940, United States Code, title 15, sections 80b-1 to
141.1780b-21; and
141.18(6) investment options of a bank as defined in United States Code, title 15, section
141.1980b-2, subsection (a), paragraph (2), or a bank holding company as defined in the Bank
141.20Holding Company Act of 1956, United States Code, title 12, section 1841, subsection
141.21(a), paragraph (1).
141.22EFFECTIVE DATE.This section is effective July 1, 2014.

141.23    Sec. 22. [356.646] PLAN PARTICIPANT INVESTMENT RESPONSIBILITY.
141.24    Subdivision 1. Member investment responsibility. The state, the State Board of
141.25Investment and its executive director and staff, the plan administrators and their staff, and
141.26participating public employers are not liable and are not responsible for any investment
141.27losses due to choices made by participants or due to qualified default investment
141.28alternatives.
141.29    Subd. 2. Application. This section applies to the:
141.30    (1) Minnesota state deferred compensation plan, established under section 352.965;
141.31    (2) health care savings plan, established under section 352.98;
141.32    (3) unclassified employees retirement program, established under chapter 352D;
141.33    (4) public employees defined contribution plan, established under chapter 353D;
141.34    (5) individual retirement account plan, established under chapter 354B;
142.1    (6) higher education supplemental retirement plan, established under chapter 354C;
142.2and
142.3    (7) Arts Board and Humanities Commission individual retirement account plan,
142.4established under chapter 354D.
142.5EFFECTIVE DATE.This section is effective July 1, 2014.

142.6    Sec. 23. Minnesota Statutes 2013 Supplement, section 356.91, is amended to read:
142.7356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION.
142.8    (a) Upon written authorization of a person receiving an annuity from a public pension
142.9fund administered by the Minnesota State Retirement System or, the Public Employees
142.10Retirement Association, or the Teachers Retirement Association, the executive director of
142.11the public pension fund shall deduct from the retirement annuity an amount requested by
142.12the annuitant to be paid as membership dues or other payments to any labor organization
142.13that is an exclusive bargaining agent representing public employees or an organization
142.14representing retired public employees of which the annuitant is a member and shall, on a
142.15monthly basis, pay the amount to the organization so designated by the annuitant.
142.16    (b) A pension fund and the plan fiduciaries which authorize or administer deductions
142.17of dues payments under paragraph (a) are not liable for failure to properly deduct or transmit
142.18the dues amounts, provided that the fund and the fiduciaries have acted in good faith.
142.19    (c) Any labor organization that is an exclusive bargaining agent representing public
142.20employees or an organization representing retired public employees may conduct blind
142.21mailings to the annuitants of a retirement system specified in paragraph (a) by requesting
142.22that the retirement system mail voluntary membership information and dues deduction
142.23cards to annuitants. Such mailings shall not be for the purpose of supporting or opposing
142.24any candidate, political party, or ballot measure. The organization requesting the blind
142.25mailing shall pay all costs associated with these mailings, including but not limited to
142.26copying, labeling, mailing, postage, and record keeping. In lieu of administering a blind
142.27mailing in-house, a retirement system may transmit annuitant data necessary for conducting
142.28a blind mailing to a mail center pursuant to a secure data share agreement with the mail
142.29center which provides that neither the organization nor any other entity shall have direct
142.30access to the data transmitted by the retirement system. The retirement system shall have
142.31no obligation to approve or disapprove, or otherwise be responsible for, the content of the
142.32mailings. No organization shall conduct more than two blind mailings per calendar year.
142.33EFFECTIVE DATE.This section is effective July 2, 2015.

143.1    Sec. 24. Laws 2009, chapter 169, article 5, section 2, the effective date, as amended by
143.2Laws 2010, chapter 359, article 5, section 27, is amended to read:
143.3EFFECTIVE DATE.This section is effective the day following final enactment
143.4and expires on June 30, 2014. Individuals must not be appointed to a postretirement
143.5option position after that date.
143.6EFFECTIVE DATE.This section is effective the day following final enactment.

143.7    Sec. 25. COUNTY SHERIFF TEMPORARY EARLY RETIREMENT
143.8PROVISION.
143.9    Subdivision 1. Application. (a) This section applies to a county sheriff who:
143.10(1) terminates membership in the public employees police and fire retirement plan
143.11after June 30, 2014, and by the final day in office in January 2015 as reported by the county;
143.12(2) is at least age 50 but less than age 55 on the date of termination;
143.13(3) is at least partially vested under Minnesota Statutes, section 353.01, subdivision
143.1447, and meets all applicable requirements for receipt of an early retirement annuity from
143.15the plan; and
143.16(4) has as the benefit effective date the day following termination of public
143.17employees police and fire retirement plan membership.
143.18(b) Notwithstanding any provision of Minnesota Statutes, section 353.651,
143.19subdivision 4, to the contrary, the early retirement annuity applicable to an eligible person
143.20under paragraph (a) is the applicable benefit specified in subdivision 2.
143.21    Subd. 2. Early retirement annuity. (a) If an eligible person became a public
143.22employees police and fire retirement plan member after June 30, 2007, or was a former
143.23member who was reinstated as a member after that date, the person is entitled, upon
143.24application, to the normal annuity calculated under Minnesota Statutes, section 353.651,
143.25subdivision 3, reduced by two-tenths of one percent for each month that the member
143.26is under age 55 at the time of retirement.
143.27(b) If an eligible person became a public employees police and fire retirement plan
143.28member before July 1, 2007, and is covered under paragraph (a), the person is entitled,
143.29upon application, to the normal annuity calculated under Minnesota Statutes, section
143.30353.651, subdivision 3, reduced by one-tenth of one percent for each month that the
143.31member is under age 55 at the time of retirement.
143.32(c) If an eligible person is not fully vested, the annuity computed under this section
143.33must be reduced accordingly.
144.1    Subd. 3. Expiration. This section expires on January 1, 2016.
144.2EFFECTIVE DATE.This section is effective the day following final enactment.

144.3    Sec. 26. COUNTY SHERIFF TEMPORARY PROVISION; APPLICATION OF
144.4POSTRETIREMENT ADJUSTMENT WAITING PERIOD.
144.5    Subdivision 1. Application. Notwithstanding Minnesota Statutes, section 356.415,
144.6subdivision 1c, paragraph (a), to the contrary, this section applies to a county sheriff who:
144.7(1) terminates membership in the public employees police and fire retirement plan
144.8after June 30, 2014, and by the final day in office in January 2015 as reported by the county;
144.9(2) is at least age 50 on the date of membership termination;
144.10(3) is at least partially vested under Minnesota Statutes, section 353.01, subdivision
144.1147, and meets all applicable requirements for receipt of a retirement annuity from the
144.12public employees police and fire retirement plan; and
144.13(4) has as the effective date for the commencement of the retirement annuity the day
144.14following the date on which termination of public employees police and fire retirement
144.15plan membership occurs.
144.16    Subd. 2. Waiting period for initial postretirement adjustment eligibility. A
144.17person to whom subdivision 1 applies is eligible to receive the initial postretirement
144.18adjustment under Minnesota Statutes, section 356.415, subdivision 1c, paragraph (a),
144.19clause (1) or (2), whichever applies, rather than under Minnesota Statutes, section
144.20356.415, subdivision 1c, paragraph (a), clause (3) or (4).
144.21    Subd. 3. Expiration. This section expires on February 2, 2015.
144.22EFFECTIVE DATE.This section is effective the day following final enactment.

144.23    Sec. 27. REPEALER.
144.24Minnesota Statutes 2012, sections 11A.17, subdivision 4; 352.965, subdivision 5;
144.25352D.04, subdivision 1; and 353D.05, subdivision 2, are repealed.
144.26EFFECTIVE DATE.This section is effective July 1, 2014.


144.29    Section 1. PERA-POLICE AND FIRE; DISABILITY BENEFIT APPLICATION
144.30DEADLINE EXTENSION FOR CERTAIN WADENA COUNTY SHERIFF'S
144.31DEPUTIES.
145.1(a) Notwithstanding any provision of Minnesota Statutes, section 353.031 or
145.2353.656 to the contrary, an eligible person described in paragraph (b) is authorized to file
145.3an application for a disability benefit from the public employees police and fire retirement
145.4plan retroactively from the date of a shooting event in which the person was involved
145.5on March 11, 2006.
145.6(b) An eligible person is a person who:
145.7(1) was born on August 11, 1971;
145.8(2) was initially employed as a deputy sheriff by Wadena County on March 9, 2006;
145.9(3) was, by virtue of law enforcement employment, a member of the public
145.10employees police and fire retirement plan;
145.11(4) was involved in the nonfatal shooting incident of a gun-wielding suspect near
145.12Sebelia, Minnesota, on March 11, 2006, without being physically injured;
145.13(5) resigned from the Wadena County sheriff's department in October 2010 after
145.14being treated for mental health issues for the prior six months; and
145.15(6) failed to apply for a mental health-related disability benefit by the November 11,
145.162007, deadline for applying for a disability benefit from the public employees police and
145.17fire retirement plan based on the March 11, 2006, shooting incident.
145.18(c) If the eligible person files a disability benefit application under paragraph (a)
145.19on or before the expiration date specified in paragraph (d), and if the eligible person is
145.20determined by the Public Employees Retirement Association as being disabled while in
145.21the line of duty as a result of the March 11, 2006, shooting incident, the eligible person
145.22is entitled to receive a duty disability benefit from the public employees police and fire
145.23retirement plan under Minnesota Statutes, section 353.656, subdivision 1 or 1a, including
145.24retroactive benefit payments from April 1, 2006.
145.25(d) The authority for the eligible person to file a disability benefit application under
145.26paragraph (a) expires on July 1, 2015.
145.27EFFECTIVE DATE.This section is effective the day following final enactment.

145.28    Sec. 2. PERMITTING THE PURCHASE OF SALARY CREDIT BY CERTAIN
145.29CURRENT AND FORMER CITY OF DULUTH OR DULUTH AIRPORT
145.30AUTHORITY EMPLOYEES COVERED BY THE GENERAL EMPLOYEES
145.31RETIREMENT PLAN OR THE PUBLIC EMPLOYEES POLICE AND FIRE
145.32RETIREMENT PLAN.
145.33    Subdivision 1. Authorization. Due to a Court of Appeals determination that certain
145.34salary-supplement payments, provided to certain city of Duluth and Duluth Airport
146.1Authority employees and deposited in the employee's deferred compensation account,
146.2should have been considered salary for pension purposes, an eligible person is authorized
146.3to receive the treatment specified in this section if the eligible person chooses to make the
146.4employee contribution equivalent payment specified in this section.
146.5    Subd. 2. Eligible person. (a) An eligible person:
146.6(1) is a current or former employee of the city of Duluth or the Duluth Airport
146.7Authority, employed by that governmental subdivision between August 1, 2007, and
146.8December 31, 2011;
146.9(2) was a participating member of the general employees retirement plan of the
146.10Public Employees Retirement Association or the public employees police and fire
146.11retirement plan for that employment; and
146.12(3) had employer-paid amounts made to the person's deferred compensation account
146.13for which contributions were not made to the applicable Public Employees Retirement
146.14Association plan fund between August 1, 2007, and December 31, 2011, or the date of
146.15the employee's termination of public service under Minnesota Statutes, section 353.01,
146.16subdivision 11a, whichever is earlier, due to an erroneous application of law under which
146.17the Public Employees Retirement Association executive director and board concluded
146.18that these employer-paid amounts were not salary for pension purposes under Minnesota
146.19Statutes, section 353.01, subdivision 10.
146.20(b) A surviving spouse, as defined in this paragraph, is an eligible person for
146.21purposes of this section. A surviving spouse means:
146.22(1) the surviving spouse of an eligible person as defined in paragraph (a) who, at
146.23the time of the eligible person's death, was a deferred annuitant of a Public Employees
146.24Retirement Association plan specified in this section;
146.25(2) the surviving spouse of an eligible person as defined in paragraph (a) receiving
146.26benefits under a joint and survivor annuity from a Public Employees Retirement
146.27Association plan specified in this section; or
146.28(3) the surviving spouse of an eligible person as defined in paragraph (a) receiving a
146.29survivor benefit under Minnesota Statutes, section 353.657.
146.30    Subd. 3. Employee contributions. An eligible person may make payment of an
146.31employee contribution equivalent amount to the fund of the general employees retirement
146.32plan of the Public Employees Retirement Association or the public employees police
146.33and fire retirement plan, whichever provided the coverage. The employee contribution
146.34equivalent amount is the amount of employee contributions that would have been made
146.35by the employee based on the employer-paid amounts made to the person's deferred
147.1compensation account for the period specified in subdivision 2, and the employee
147.2contribution rates to the applicable Public Employees Retirement Association plan during
147.3that period. If an employee contribution equivalent amount is paid, it must be made in
147.4full and in a lump sum.
147.5    Subd. 4. Employer contributions. (a) If an eligible person makes the employee
147.6equivalent contribution under subdivision 3, the city of Duluth or the Duluth Airport
147.7Authority, whichever is the applicable employing unit, may make the corresponding
147.8employer contributions, plus any employer supplemental and employer additional
147.9contributions required by law during the applicable time period.
147.10(b) Any contributions specified under this subdivision must be based on the
147.11employer-paid amounts referred to in subdivision 2, and the contribution rates applicable
147.12during the time period for regular employer contributions, and any employer supplemental
147.13and employer additional contributions, if applicable.
147.14(c) Within 30 days of receipt by the executive director of the Public Employees
147.15Retirement Association of employee equivalent contributions under subdivision 3,
147.16the executive director shall notify the city of Duluth or the Duluth Airport Authority,
147.17whichever is the applicable employer, of amounts due under this subdivision. If the
147.18employer chooses to make the payment specified in this subdivision, payment shall be
147.19remitted by the applicable employer to the executive director for deposit in the applicable
147.20fund within 30 days of notification. If payment is not made in full within that time period,
147.21the executive director shall collect the necessary amounts by applying Minnesota Statutes,
147.22section 353.28, subdivision 6.
147.23    Subd. 5. Benefit adjustments. Upon receipt of the applicable employee equivalent
147.24contribution under subdivision 3 from an eligible person, the executive director shall
147.25revise the records of the Public Employees Retirement Association and grant the person
147.26the additional salary credit. If a retirement, disability, or survivor annuity has commenced,
147.27the executive director must adjust the benefit being paid to include in the calculation the
147.28additional salary on which contributions were paid, and the adjusted benefit must be paid
147.29retroactive from the effective date of the initial benefit payment under the annuity.
147.30    Subd. 6. Restrictions. This section does not apply if service credit and other rights
147.31under the plan were forfeited by taking a refund.
147.32    Subd. 7. Treatment of interest. Notwithstanding any provision in Minnesota
147.33Statutes, chapter 353, to the contrary, all payments specified in this section made by an
147.34eligible person to the executive director for deposit in the applicable Public Employees
148.1Retirement Association fund are to be made without interest. Any payments required from
148.2the employer under this section are also without interest, provided the employer makes
148.3the payment to the executive director within 30 days of notification. Interest shall be
148.4charged, as specified in Minnesota Statutes, section 353.28, on any employer obligations
148.5not paid within the 30-day period.
148.6    Subd. 8. Notification; counseling. The executive director shall notify all active
148.7members, deferred members, retirees, and survivors to whom this section may apply and
148.8shall provide counseling regarding the implications of this section, including payment
148.9requirements and likely adjustments in current or future benefit amounts if employee
148.10equivalent contributions as specified in this section are made.
148.11    Subd. 9. Expiration of salary credit purchase authority. Payment of employee
148.12contribution equivalent amounts, as authorized under this section, is prohibited after 180
148.13days following the date that local approval is provided by the applicable employing unit of
148.14the current or former employee.
148.15    Subd. 10. Ratification. Actions taken before the effective date of this section by
148.16the executive director and board of the Public Employees Retirement Association, the
148.17city of Duluth, the Duluth Airport Authority, and eligible persons which are otherwise
148.18consistent with this section are ratified.
148.19EFFECTIVE DATE.This section is effective the day following final enactment.

148.20    Sec. 3. PERA-GENERAL; HENNEPIN COUNTY ELECTED SERVICE
148.21CREDIT PURCHASE.
148.22(a) Notwithstanding any provision of Minnesota Statutes, chapters 353 and 353D,
148.23or other law to the contrary, an eligible person described in paragraph (b) is entitled to
148.24purchase allowable service credit from the coordinated program of the general employees
148.25retirement plan of the Public Employees Retirement Association for the period of service
148.26as an elected county commissioner for Hennepin County that is not otherwise covered
148.27under Minnesota Statutes, chapter 353, if the eligible person makes the payment required
148.28under paragraph (d).
148.29(b) An eligible person is a person who:
148.30(1) was born on November 18, 1946; and
148.31(2) was first elected as a Hennepin County commissioner in November 1978 and
148.32was sworn in as a commissioner on January 2, 1979.
149.1(c) If the eligible person described in paragraph (b) elects to participate in the general
149.2employees retirement plan of the Public Employees Retirement Association governed by
149.3Minnesota Statutes, chapter 353, effective on the first day of the month next following the
149.4effective date of this section, the eligible person may apply to the executive director of
149.5the Public Employees Retirement Association to make the service credit purchase under
149.6this section. The application must be in writing and must be accompanied with necessary
149.7documentation of the applicability of this section and of any other relevant information
149.8that the executive director may require.
149.9(d) Allowable service credit under Minnesota Statutes, section 353.01, subdivision
149.1016, must be granted by the coordinated program of the general employees retirement plan
149.11of the Public Employees Retirement Association to the eligible person upon the receipt
149.12of the prior service credit purchase payment amount required under Minnesota Statutes,
149.13section 356.551. The payment obligation must be offset first by a transfer of the account
149.14balance to the credit of the eligible person from the defined contribution plan of the Public
149.15Employees Retirement Association. If that transfer is insufficient, the balance of the
149.16service credit purchase payment may be made from amounts to the credit of the eligible
149.17person under Minnesota Statutes, section 352.965 or 383B.46.
149.18(e) If, before July 1, 2018, the interest rate actuarial assumption, the mortality
149.19actuarial assumption, or both actuarial assumptions of the general employees retirement
149.20plan of the Public Employees Retirement Association are modified and the net result of
149.21any modification is to increase the actuarial accrued liability of the retirement plan, the
149.22eligible person, as a condition of a continued receipt of an annuity from the retirement
149.23plan, shall reimburse the retirement fund for the amount of the increase in required
149.24reserves for the annuity, determined as the difference between the present value of the
149.25annuity on the effective date of the assumption change or changes before the assumption
149.26change or changes and after the assumption change or changes. The executive director
149.27shall certify the amount due, if any, to the eligible person and payment is due 30 days later.
149.28(f) Authority for an eligible person to make the prior service credit purchase
149.29under this section expires on December 31, 2015, or upon the termination of service as
149.30a Hennepin County commissioner, whichever is earlier.
149.31EFFECTIVE DATE.This section is effective the day following final enactment.

149.32    Sec. 4. PERA-P&F; MILLE LACS BAND PRIOR SERVICE CREDIT
149.33PURCHASE AUTHORIZED.
150.1(a) An eligible person described in paragraph (b) is entitled to purchase allowable
150.2service credit in the public employees police and fire retirement plan for the period
150.3specified in paragraph (c) by remitting the payment calculated under paragraph (d).
150.4(b) An eligible person is a person who:
150.5(1) was born on June 28, 1966;
150.6(2) was initially employed as a full-time police officer by the Mille Lacs tribal
150.7police department on October 29, 1998;
150.8(3) was initially employed as a part-time police officer by the city of Onamia on
150.9July 28, 2002;
150.10(4) was initially employed as a part-time police officer by the city of Pierz on March
150.1114, 2013; and
150.12(5) is an active member of the public employees police and fire retirement plan.
150.13(c) The period of Mille Lacs tribal police department employment available for
150.14purchase is the two-year period of Mille Lacs tribal police department employment
150.15immediately preceding initial active membership in the public employees police and fire
150.16retirement plan in that capacity.
150.17(d) The full actuarial value prior service credit purchase payment amount must be
150.18calculated under Minnesota Statutes, section 356.551.
150.19(e) The eligible person must provide the executive director of the Public Employees
150.20Retirement Association with any relevant requested information pertaining to the service
150.21credit purchase.
150.22(f) Authority to make a service credit purchase under this section expires on June 30,
150.232015, or upon the eligible person's termination from public employment as defined under
150.24Minnesota Statutes, section 353.01, subdivision 11a, whichever occurs earlier.
150.25EFFECTIVE DATE.This section is effective the day following final enactment.

150.26    Sec. 5. TEACHERS RETIREMENT ASSOCIATION; PROSPECTIVE
150.27TEACHERS RETIREMENT ASSOCIATION COVERAGE; PURCHASE OF
150.28PAST SERVICE CREDIT.
150.29    (a) An eligible person described in paragraph (b) is authorized to become a
150.30coordinated member of the Teachers Retirement Association and to purchase service
150.31and salary credit in the Teachers Retirement Association coordinated plan retroactively
150.32from January 1, 1995, upon making an election under paragraph (c) and upon making all
150.33required payments under paragraphs (d) and (e).
150.34    (b) An eligible person is a person who:
150.35    (1) was born on October 29, 1957;
151.1    (2) has been employed at Mesabi Range Community and Technical College as
151.2an instructor since 1993;
151.3    (3) in 1994 was classified in the unlimited part-time category;
151.4    (4) became eligible for and was covered by the higher education individual
151.5retirement account plan in January 1994; and
151.6    (5) was not offered an election of Teachers Retirement Association coverage, as
151.7required under Laws 1994, chapter 508, article 1, section 10.
151.8    (c) To be eligible for coverage by the Teachers Retirement Association, an eligible
151.9person must submit a written application to the executive director of the Teachers
151.10Retirement Association on a form provided by the Teachers Retirement Association. The
151.11application must include all documentation of the applicability of this section and any
151.12other relevant information that the executive director may require. Teachers Retirement
151.13Association plan membership commences as of September 1, 2014, for an applicable
151.14eligible person, and past salary and service credit is granted from January 1, 1995,
151.15as specified in this section, following receipt by the executive director of the written
151.16application specified in this paragraph and receipt of the payments specified in paragraphs
151.17(d) and (e). The authority granted by this section is voided if the applicable eligible
151.18individual terminates from Minnesota State Colleges and Universities system employment
151.19prior to receipt by the executive director of the Teachers Retirement Association of the
151.20application specified in this paragraph and amounts specified in paragraphs (d) and (e).
151.21Coverage by the Teachers Retirement Association is in lieu of coverage by the individual
151.22retirement account plan.
151.23    (d) If an eligible person makes an election under paragraph (c), the eligible person
151.24shall make, before September 1, 2014, a contribution equal to the excess, if any, of the
151.25employee contributions that the individual would have made if the Teachers Retirement
151.26Association had provided coverage from January 1, 1995, rather than the individual
151.27retirement account plan. These additional contribution amounts shall include 8.5 percent
151.28annual compound interest computed from the date the contribution would have been made
151.29if deducted from salary until paid. The total amount to be paid under this paragraph shall
151.30be determined by the executive director of the Teachers Retirement Association and
151.31written notification of the amount required under this paragraph should be transmitted
151.32to the eligible individual.
151.33    (e) If payment is made under paragraph (d), the value of the applicable eligible
151.34person's higher education individual retirement account plan account shall be determined
151.35as of September 1, 2014, and that account value shall be transferred to the Teachers
151.36Retirement Association on or before September 15, 2014.
152.1    (f) The Teachers Retirement Association shall determine the full actuarial value
152.2imposed upon the Teachers Retirement Association under this section due to the salary
152.3and service credit purchase.
152.4    (g) From the total amount computed under paragraph (f), the executive director of the
152.5Teachers Retirement Association shall subtract the amounts received under paragraphs (d)
152.6and (e). The Minnesota State Colleges and Universities system is authorized to transmit the
152.7remaining amount, if any, to the executive director of the Teachers Retirement Association.
152.8    (h) Any payment amount specified from the Minnesota State Colleges and
152.9Universities system under paragraph (g) shall be transmitted to the Teachers Retirement
152.10Association within one month following receipt of amounts transmitted under paragraphs
152.11(d) and (e), and following notification from the executive director of the Teachers
152.12Retirement Association. If a payment from the Minnesota State Colleges and Universities
152.13system specified under paragraph (g) is not made, the executive director of the Teachers
152.14Retirement Association must notify the commissioner of Minnesota Management and
152.15Budget of this fact and that commissioner must order that amounts specified under
152.16paragraph (g) shall be deducted from appropriations or state aid to the Minnesota
152.17State Colleges and Universities system and be transmitted to the Teachers Retirement
152.18Association.
152.19EFFECTIVE DATE.This section is effective the day following final enactment."
152.20Delete the title and insert:
152.22relating to retirement; various Minnesota public employee retirement plans;
152.23allowing MSRS-General deferred members to vote in board elections;
152.24continuing Stevens County Housing and Redevelopment Authority employees
152.25in PERA-General; excluding fixed-route bus drivers employed by the St.
152.26Cloud Metropolitan Transit Commission from PERA-General coverage;
152.27increasing member and employer contribution rates for certain retirement
152.28plans; providing for the consolidation of the Duluth Teachers Retirement Fund
152.29Association retirement plan and fund into the statewide Teachers Retirement
152.30Association; revising an amortization target date, creating new state aid
152.31programs; appropriating money; extending a MnSCU early retirement incentive
152.32program; increasing the limit for certain reemployed MnSCU retirees; extending
152.33the applicability of a second chance at tenure retirement coverage election
152.34opportunity for MnSCU faculty members; revising investment authority for
152.35various defined contribution plans or programs; authorizing the State Board of
152.36Investment to revise, remove, or create investment options for the Minnesota
152.37supplemental investment fund; expanding permissible investments under the
152.38unclassified state employees retirement program, the public employees defined
152.39contribution plan, the deferred compensation program, and the health care savings
152.40plan; revising salary reporting requirements; clarifying retirement provision
152.41applications to sheriffs; revising local government postretirement option program
152.42requirements and extending expiration date; clarifying future postretirement
152.43adjustment rates for former members of the former Minneapolis Firefighters
152.44Relief Association and the former Minneapolis Police Relief Association;
152.45making technical changes to amortization state aid and supplemental state aid;
153.1clarifying the eligibility of independent nonprofit firefighting corporations to
153.2receive police and fire supplemental retirement state aid; implementing the
153.3recommendations of the 2013-2014 state auditor volunteer fire working group;
153.4modifying the disability benefit application deadline for certain former Wadena
153.5County sheriff's deputies; authorizing city of Duluth and Duluth Airports
153.6Authority employee salary-supplement payments coverage following Court of
153.7Appeals decision; specifying interest rate for computing joint and survivor
153.8annuities; revising postretirement adjustment triggers; revising reemployed
153.9annuitant withholding in certain divorce situations; clarifying medical advisor
153.10and resumption of teaching provisions; specifying explicit postretirement
153.11adjustment assumptions; allowing volunteer firefighter relief associations to pay
153.12state fire chiefs association dues from the special fund; authorizing MnSCU
153.13employee to elect TRA coverage and transfer past service from IRAP to TRA;
153.14clarifying the applicability of 2013 postretirement adjustment modifications to
153.15certain county sheriffs; ratifying or grandparenting MSRS-Correctional plan
153.16coverage for Department of Human Services employees; allowing various service
153.17credit purchases; requiring a PERA report on certain survivor benefit amounts;
153.18amending Minnesota Statutes 2012, sections 3A.01, subdivision 1a; 11A.17,
153.19subdivisions 1, 9; 13.632, subdivision 1; 122A.18, subdivision 7a; 136F.481;
153.20352.01, subdivisions 2b, 12; 352.03, subdivisions 1, 1a; 352.04, subdivisions 2,
153.213; 352.115, subdivisions 8, 10; 352.1155, subdivisions 1, 4; 352.90; 352.91,
153.22subdivisions 1, 2, 3c, 3d, 3e, 3f, by adding a subdivision; 352.92, subdivisions
153.231, 2; 352.965, subdivision 4, by adding subdivisions; 352.98, subdivision 2;
153.24352B.08, subdivision 3; 352D.04, by adding subdivisions; 353.01, subdivision
153.2514; 353.27, subdivisions 2, 3, 3b, 4, by adding a subdivision; 353.30, subdivision
153.263; 353.37, by adding a subdivision; 353.371, by adding a subdivision; 353.6511,
153.27subdivision 7; 353.6512, subdivision 7; 353D.05, subdivision 1, by adding a
153.28subdivision; 354.05, subdivisions 2, 7, 13; 354.42, subdivisions 2, 3; 354.44,
153.29subdivision 5; 354.445; 354.48, subdivision 6a; 354A.011, subdivisions 11, 15a,
153.3027; 354A.021, subdivision 1; 354A.092; 354A.093, subdivision 1; 354A.096;
153.31354A.12, subdivision 2; 354A.29, subdivision 8; 354A.31, subdivisions 1,
153.323a; 354A.32, subdivision 1; 354A.35, subdivision 1; 354A.37, subdivisions
153.333, 4; 354A.39; 354A.41; 354B.21, subdivisions 2, 3a; 355.01, subdivision
153.342c; 356.215, subdivision 11; 356.24, subdivision 1; 356.302, subdivision
153.357; 356.303, subdivision 4; 356.32, subdivision 2; 356.415, subdivision 1d;
153.36356.42, subdivision 3; 356.465, subdivision 3; 356.47, subdivision 3; 356.635,
153.37subdivision 6; 356.99, subdivision 1; 356A.06, subdivisions 7, 7a; 424A.015,
153.38by adding a subdivision; 424A.016, subdivisions 4, 7; 424A.05, subdivision
153.393; 424A.08; 424B.12; 490.121, subdivision 2a; Minnesota Statutes 2013
153.40Supplement, sections 69.051, subdivisions 1a, 3; 352.01, subdivision 2a; 352.03,
153.41subdivision 4; 353.01, subdivisions 2a, 2b; 353.651, subdivision 4; 354.436;
153.42354.44, subdivision 6; 354A.12, subdivisions 1, 2a, 3a, 3c; 354A.27, subdivision
153.436a; 356.20, subdivision 2; 356.214, subdivision 1; 356.215, subdivision
153.448; 356.219, subdivision 8; 356.30, subdivision 3; 356.401, subdivision 3;
153.45356.415, subdivisions 1a, 1c, 1e, 1f; 356.91; 423A.02, subdivision 3; 423A.022,
153.46subdivisions 2, 3; 424A.016, subdivision 6; 424A.02, subdivisions 3, 7;
153.47424A.092, subdivision 6; 424A.093, subdivisions 2, 6; 424A.094, subdivision
153.482; 424A.10, subdivision 2; Laws 2009, chapter 169, article 5, section 2, as
153.49amended; article 6, section 1; proposing coding for new law in Minnesota
153.50Statutes, chapters 354; 354A; 356; repealing Minnesota Statutes 2012, sections
153.5111A.17, subdivision 4; 352.965, subdivision 5; 352D.04, subdivision 1;
153.52353D.05, subdivision 2; 354A.021, subdivision 5; 354A.108; 354A.24; 354A.27,
153.53subdivision 5; 356.415, subdivision 3; Minnesota Statutes 2013 Supplement,
153.54sections 354A.27, subdivisions 6a, 7; 354A.31, subdivision 4a."