1.1    .................... moves to amend H.F. No. 3798; S.F. No. 3324, as follows:
1.2Page 23, after line 7, insert:


1.5    Section 1. [353D.071] FEDERAL COMPLIANCE.
1.6    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.7have the meanings given to them.
1.8    (b) "Designated beneficiary" means the person designated as the beneficiary under
1.9section 353D.07, subdivision 5, and who is the designated beneficiary under section
1.10401(a)(9) of the Internal Revenue Code and section 1.401(a)(9)-1, Q&A-4 of the Treasury
1.11regulations.
1.12    (c) "Distribution calendar year" means a calendar year for which a minimum
1.13distribution is required. For distributions beginning before the member's death, the first
1.14distribution calendar year is the calendar year immediately preceding the calendar year
1.15which contains the member's required beginning date. For distributions beginning after
1.16the member's death, the first distribution calendar year is the calendar year in which
1.17distributions are required to begin under subdivision 2, paragraph (c). The required
1.18minimum distribution for the member's first distribution calendar year shall be made on or
1.19before the member's required beginning date.
1.20    (d) "Member's account balance" means the account balance as of the last valuation
1.21date in the valuation calendar year increased by the amount of any contributions made
1.22and allocated to the account balance as of dates in the valuation calendar year after the
1.23valuation date and decreased by distributions made in the valuation calendar year after
1.24the valuation date. The account balance for the valuation calendar year includes any
1.25amounts rolled over or transferred to the plan either in the valuation calendar year or in the
1.26distribution calendar year if distributed or transferred in the valuation calendar year.
2.1    (e) "Required beginning date" means the later of April 1 of the calendar year
2.2following the calendar year that the member attains age 70.5 or April 1 of the calendar
2.3year following the calendar year in which the member terminates employment.
2.4    (f) "Valuation calendar year" means the calendar year immediately preceding the
2.5distribution calendar year.
2.6    Subd. 2. Required Minimum Distributions. (a) The provisions of this subdivision
2.7shall apply for purposes of determining required minimum distributions for calendar years
2.8beginning with the 2003 calendar year and will take precedence over any inconsistent
2.9provisions of the plan. All distributions required under this section will be determined and
2.10made in accordance with the treasury regulations under section 401(a)(9) of the Internal
2.11Revenue Code, including regulations providing special rules for governmental plans, as
2.12defined under Internal Revenue Code section 414(d), that comply with a reasonable good
2.13faith interpretation of the minimum distribution requirements.
2.14    (b) The member's entire interest will be distributed to the member in a lump sum no
2.15later than the member's required beginning date.
2.16    (c) If the member dies before the required minimum distribution is made, the
2.17member's entire interest will be distributed in a lump sum no later than as follows:
2.18    (1) If the member's surviving spouse is the member's sole designated beneficiary, the
2.19distribution must be made by December 31 of the calendar year immediately following the
2.20calendar year in which the member died, or by December 31 of the calendar year in which
2.21the member would have attained age 70.5, whichever is later;
2.22    (2) If the member's surviving spouse is not the member's sole beneficiary, or if
2.23there is no designated beneficiary as of September 30 of the year following the year of
2.24the member's death, the member's entire interest shall be distributed by December 31 of
2.25the calendar year containing the fifth anniversary of the member's death as directed under
2.26353D.07, subdivision 5;
2.27    (3) If the member's surviving spouse is the member's sole designated beneficiary and
2.28the surviving spouse dies after the member but before the account balance is distributed
2.29to the surviving spouse, paragraph (c), clause (2) shall apply as if the surviving spouse
2.30were the member.
2.31    (d) For purposes of paragraph (c), unless clause (3) applies, distributions are
2.32considered to be made on the member's required beginning date. If paragraph (c), clause
2.33(3) applies, distributions are considered to begin on the date distributions are required to
2.34be made to the surviving spouse under paragraph (c), clause (1).
2.35EFFECTIVE DATE.This section is effective the day following final enactment.

3.1    Sec. 2. Minnesota Statutes 2006, section 356.611, subdivision 2, is amended to read:
3.2    Subd. 2. Federal compensation limits. (a) For members of a covered pension
3.3plan enumerated in section 356.30, subdivision 3 and of the plan established under
3.4chapter 353D, compensation in excess of the limitation specified in section 401(a)(17) of
3.5the Internal Revenue Code, as amended, for changes in the cost of living under section
3.6401(a)(17)(B) of the Internal Revenue Code, may not be included for contribution and
3.7benefit computation purposes.
3.8    (b) Notwithstanding paragraph (a), for members specified in paragraph (a) who first
3.9contributed to a covered plan specified in that paragraph before July 1, 1995, the annual
3.10compensation limit specified in Internal Revenue Code 401(a)(17) on June 30, 1993,
3.11applies if that provides a greater allowable annual compensation.
3.12EFFECTIVE DATE.This section is effective the day following final enactment.

3.13    Sec. 3. Minnesota Statutes 2006, section 356.611, is amended by adding a subdivision
3.14to read:
3.15    Subd. 3a. Maximum annual addition limitation. The annual additions on behalf
3.16of a member to the plan established under chapter 352D or 353D for any limitation year
3.17beginning after December 31, 2001 shall not exceed the lesser of one hundred percent
3.18of the member's compensation, as defined for purposes of section 415 (c) of the Internal
3.19Revenue Code; or $40,000, as adjusted by the United States secretary of the treasury under
3.20section 415(d) of the Internal Revenue Code.
3.21EFFECTIVE DATE.This section is effective the day following final enactment."
3.22Amend the title accordingly