1.1.................... moves to amend H.F. No. 2807; S.F. No. 2536, the delete everything
1.2amendment (H2807-10A), as follows:
1.3Page 1, after line 4, insert:

"1.4ARTICLE 1
1.5MSRS, TRA, AND SPTRFA POST-RETIREMENT ADJUSTMENT REVISIONS
1.6SPTRFA SUPPLEMENTAL EMPLOYER CONTRIBUTION

1.7    Section 1. Minnesota Statutes 2014, section 354A.12, subdivision 2a, is amended to
1.8read:
1.9    Subd. 2a. Employer regular and additional contributions. (a) The employing
1.10units shall make the following employer contributions to the teachers retirement fund
1.11association:
1.12(1) for any each coordinated member of the St. Paul Teachers Retirement Fund
1.13Association, the employing unit shall make a regular employer contribution to the
1.14retirement fund association in an amount equal to the designated percentage of the salary
1.15of the coordinated member as provided below:
1.16
 after June 30, 2014
 5.5 percent
1.17
 after June 30, 2015
 6 percent
1.18
 after June 30, 2016
 6.25 percent
1.19
 after June 30, 2017
 6.5 percent
1.20
 after June 30, 2018
 7.0 percent
1.21(2) for any each basic member of the St. Paul Teachers Retirement Fund Association,
1.22the employing unit shall make a regular employer contribution to the respective retirement
1.23fund in an amount according to the schedule below:
1.24
 after June 30, 2014
 9 percent of salary
1.25
 after June 30, 2015
 9.5 percent of salary
1.26
 after June 30, 2016
 9.75 percent of salary
1.27
 after June 30, 2017
 10 percent of salary
1.28
 after June 30, 2018
 10.5 percent of salary
2.1(3) for a each basic member of the St. Paul Teachers Retirement Fund Association,
2.2the employing unit shall make an additional employer contribution to the respective fund
2.3in an amount equal to 3.64 percent of the salary of the basic member;
2.4(4) for a each coordinated member of the St. Paul Teachers Retirement Fund
2.5Association, the employing unit shall make an additional employer contribution to the
2.6respective fund in an amount equal to 3.84 percent of the coordinated member's salary.
2.7(b) The regular and additional employer contributions must be remitted directly to
2.8the St. Paul Teachers Retirement Fund Association at least once each month. Delinquent
2.9amounts are payable with interest under the procedure in subdivision 1a.
2.10(c) Payments of regular and additional employer contributions for school district
2.11or technical college employees who are paid from normal operating funds must be made
2.12from the appropriate fund of the district or technical college.
2.13(d) When an employer contribution rate changes for a fiscal year, the new
2.14contribution rate is effective for the entire salary paid by the employer with the first
2.15payroll cycle reported.
2.16EFFECTIVE DATE.This section is effective July 1, 2016.

2.17    Sec. 2. Minnesota Statutes 2015 Supplement, section 354A.29, subdivision 7, is
2.18amended to read:
2.19    Subd. 7. Eligibility for payment and calculation of postretirement adjustments.
2.20(a) Annually, after June 30, the board of trustees of the St. Paul Teachers Retirement
2.21Fund Association must determine the amount of any postretirement adjustment using the
2.22procedures in this subdivision and subdivision 8 or 9, whichever is applicable.
2.23(b) On January 1, each person who has been receiving an annuity or benefit under
2.24the articles of incorporation, the bylaws, or this chapter, whose effective date of benefit
2.25commencement occurred on or before July 1 of the immediately preceding calendar year
2.26immediately before the adjustment, is eligible to receive a postretirement increase as
2.27specified in subdivision 8 or 9 as determined under paragraph (c), clause (1) or (2),
2.28whichever applies.
2.29(c) The amount provided for under this subdivision is the full postretirement increase
2.30to be applied as a permanent increase to the regular payment of each eligible member.
2.31(1) A one percent postretirement increase shall apply for any eligible member
2.32whose effective date of benefit commencement occurred on or before January 1 of the
2.33immediately preceding calendar year.
3.1(2) A one-half of one percent postretirement increase shall apply for any eligible
3.2member whose effective date of benefit commencement occurred after January 1 of the
3.3immediately preceding calendar year.
3.4EFFECTIVE DATE.This section is effective July 1, 2016.

3.5    Sec. 3. Minnesota Statutes 2015 Supplement, section 356.215, subdivision 8, is
3.6amended to read:
3.7    Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use the
3.8applicable following interest assumption:
3.9(1) select and ultimate interest rate assumption
3.10
3.11
 plan
 ultimate interest
rate assumption
3.12
 teachers retirement plan
 8.5%
3.13The select preretirement interest rate assumption for the period through June 30,
3.142017, is eight percent.
3.15(2) single rate interest rate assumption
3.16
3.17
 plan
 interest rate
assumption
3.18
 general state employees retirement plan
 8%
3.19
 correctional state employees retirement plan
 8
3.20
 State Patrol retirement plan
 8
3.21
3.22
3.23
 legislators retirement plan, and for the
constitutional officers calculation of total plan
liabilities
 0
3.24
 judges retirement plan
 8
3.25
 general public employees retirement plan
 8
3.26
 public employees police and fire retirement plan
 8
3.27
3.28
 local government correctional service retirement
plan
 8
3.29
 St. Paul teachers retirement plan
 8
3.30
 Bloomington Fire Department Relief Association
 6
3.31
3.32
 local monthly benefit volunteer firefighter relief
associations
 5
3.33
3.34
 monthly benefit retirement plans in the statewide
volunteer firefighter retirement plan
 6
3.35(b)(1) If funding stability has been attained, the valuation of each public pension
3.36and retirement plan enumerated in section 356.20, subdivision 2, clauses (2), (4), (8),
3.37(11), and (13), must use a postretirement adjustment rate actuarial assumption equal to
3.38the postretirement adjustment rate specified in section 354A.27, subdivision 7; 354A.29,
3.39subdivision 9 ; or 356.415, subdivision 1 1b, 1c, 1e, or 1f, whichever applies.
4.1(2) If funding stability has not been attained, the valuation of each public pension
4.2and retirement plan enumerated in section 356.20, subdivision 2, clauses (2), (4), (8), (11),
4.3and (13), must use a select postretirement adjustment rate actuarial assumption equal to
4.4the postretirement adjustment rate specified in section 354A.27, subdivision 6a; 354A.29,
4.5subdivision 8 ; or 356.415, subdivision 1a, 1b, 1c, 1d, 1e, or 1f, whichever applies, for a
4.6period ending when the approved actuary estimates that the plan will attain the defined
4.7funding stability measure, and thereafter an ultimate postretirement adjustment rate
4.8actuarial assumption equal to the postretirement adjustment rate under section 354A.27,
4.9subdivision 7 ; 354A.29, subdivision 9; or 356.415, subdivision 1 1b, 1c, 1e, or 1f, for the
4.10applicable period or periods beginning when funding stability is projected to be attained.
4.11(3) The valuation of each public pension and retirement plan enumerated in section
4.12356.20, subdivision 2, clauses (1), (3), (5), and (12), must use a postretirement adjustment
4.13rate actuarial assumption equal to the postretirement adjustment rate specified in section
4.14354A.29 or 356.415, subdivision 1a or 1d, whichever applies.
4.15    (c) The actuarial valuation must use the applicable following single rate future salary
4.16increase assumption, the applicable following modified single rate future salary increase
4.17assumption, or the applicable following graded rate future salary increase assumption:
4.18    (1) single rate future salary increase assumption
4.19
 plan
 future salary increase assumption
4.20
 legislators retirement plan
 5%
4.21
 judges retirement plan
2.75
4.22
4.23
 Bloomington Fire Department Relief
Association
 4
4.24    (2) age-related future salary increase age-related select and ultimate future salary
4.25increase assumption or graded rate future salary increase assumption
4.26
 plan
 future salary increase assumption
4.27
 local government correctional service retirement plan
 assumption B
4.28
 St. Paul teachers retirement plan
 assumption A
4.29For plans other than the St. Paul teachers
4.30retirement plan and the local government
4.31correctional service retirement plan, the
4.32select calculation is: during the designated
4.33select period, a designated percentage rate
4.34is multiplied by the result of the designated
4.35integer minus T, where T is the number of
4.36completed years of service, and is added
4.37to the applicable future salary increase
5.1assumption. The designated select period
5.2is ten years and the designated integer is
5.3ten for the local government correctional
5.4service retirement plan and 15 for the St.
5.5Paul Teachers Retirement Fund Association.
5.6The designated percentage rate is 0.2 percent
5.7for the St. Paul Teachers Retirement Fund
5.8Association.
5.9    The ultimate future salary increase assumption is:
5.10
 age
 A
 B
5.11
 16
 5.9%
8.75%
5.12
 17
 5.9
8.75
5.13
 18
 5.9
8.75
5.14
 19
 5.9
8.75
5.15
 20
 5.9
8.75
5.16
 21
 5.9
8.5
5.17
 22
 5.9
8.25
5.18
 23
 5.85
8
5.19
 24
 5.8
7.75
5.20
 25
 5.75
7.5
5.21
 26
 5.7
7.25
5.22
 27
 5.65
7
5.23
 28
 5.6
6.75
5.24
 29
 5.55
6.5
5.25
 30
 5.5
6.5
5.26
 31
 5.45
6.25
5.27
 32
 5.4
6.25
5.28
 33
 5.35
6.25
5.29
 34
 5.3
6
5.30
 35
 5.25
6
5.31
 36
 5.2
5.75
5.32
 37
 5.15
5.75
5.33
 38
 5.1
5.75
5.34
 39
 5.05
5.5
5.35
 40
 5
5.5
5.36
 41
 4.95
5.5
5.37
 42
 4.9
5.25
5.38
 43
 4.85
5
5.39
 44
 4.8
5
5.40
 45
 4.75
4.75
5.41
 46
 4.7
4.75
5.42
 47
 4.65
4.75
6.1
 48
 4.6
4.75
6.2
 49
 4.55
4.75
6.3
 50
 4.5
4.75
6.4
 51
 4.45
4.75
6.5
 52
 4.4
4.75
6.6
 53
 4.35
4.75
6.7
 54
 4.3
4.75
6.8
 55
 4.25
4.5
6.9
 56
 4.2
4.5
6.10
 57
 4.15
4.25
6.11
 58
 4.1
4
6.12
 59
 4.05
4
6.13
 60
 4
4
6.14
 61
 4
4
6.15
 62
 4
4
6.16
 63
 4
4
6.17
 64
 4
4
6.18
 65
 4
3.75
6.19
 66
 4
3.75
6.20
 67
 4
3.75
6.21
 68
 4
3.75
6.22
 69
 4
3.75
6.23
 70
 4
3.75
6.24(3) service-related ultimate future salary increase assumption
6.25
6.26
 general state employees retirement plan of the
Minnesota State Retirement System
 assumption A
6.27
6.28
 general employees retirement plan of the Public
Employees Retirement Association
 assumption B
6.29
 Teachers Retirement Association
 assumption C
6.30
 public employees police and fire retirement plan
 assumption D
6.31
 State Patrol retirement plan
 assumption E
6.32
6.33
 correctional state employees retirement plan of the
Minnesota State Retirement System
 assumption F
6.34
6.35
 service
length
 A
 B
 C
 D
 E
 F
6.36
 1
 10.25%
 11.78%
 12%
 12.75%
 7.75%
 5.75%
6.37
 2
 7.85
 8.65
 9
 10.75
 7.25
 5.6
6.38
 3
 6.65
 7.21
 8
 8.75
 6.75
 5.45
6.39
 4
 5.95
 6.33
 7.5
 7.75
 6.5
 5.3
6.40
 5
 5.45
 5.72
 7.25
 6.25
 6.25
 5.15
6.41
 6
 5.05
 5.27
 7
 5.85
 6
 5
6.42
 7
 4.75
 4.91
 6.85
 5.55
 5.75
 4.85
6.43
 8
 4.45
 4.62
 6.7
 5.35
 5.6
 4.7
7.1
 9
 4.25
 4.38
 6.55
 5.15
 5.45
 4.55
7.2
 10
 4.15
 4.17
 6.4
 5.05
 5.3
 4.4
7.3
 11
 3.95
 3.99
 6.25
 4.95
 5.15
 4.3
7.4
 12
 3.85
 3.83
 6
 4.85
 5
 4.2
7.5
 13
 3.75
 3.69
 5.75
 4.75
 4.85
 4.1
7.6
 14
 3.55
 3.57
 5.5
 4.65
 4.7
 4
7.7
 15
 3.45
 3.45
 5.25
 4.55
 4.55
 3.9
7.8
 16
 3.35
 3.35
 5
 4.55
 4.4
 3.8
7.9
 17
 3.25
 3.26
 4.75
 4.55
 4.25
 3.7
7.10
 18
 3.25
 3.25
 4.5
 4.55
 4.1
 3.6
7.11
 19
 3.25
 3.25
 4.25
 4.55
 3.95
 3.5
7.12
 20
 3.25
 3.25
 4
 4.55
 3.8
 3.5
7.13
 21
 3.25
 3.25
 3.9
 4.45
 3.75
 3.5
7.14
 22
 3.25
 3.25
 3.8
 4.35
 3.75
 3.5
7.15
 23
 3.25
 3.25
 3.7
 4.25
 3.75
 3.5
7.16
 24
 3.25
 3.25
 3.6
 4.25
 3.75
 3.5
7.17
 25
 3.25
 3.25
 3.5
 4.25
 3.75
 3.5
7.18
 26
 3.25
 3.25
 3.5
 4.25
 3.75
 3.5
7.19
 27
 3.25
 3.25
 3.5
 4.25
 3.75
 3.5
7.20
 28
 3.25
 3.25
 3.5
 4.25
 3.75
 3.5
7.21
 29
 3.25
 3.25
 3.5
 4.25
 3.75
 3.5
7.22
 30 or more
 3.25
 3.25
 3.5
 4.25
 3.75
 3.5
7.23    (d) The actuarial valuation must use the applicable following payroll growth
7.24assumption for calculating the amortization requirement for the unfunded actuarial
7.25accrued liability where the amortization retirement is calculated as a level percentage
7.26of an increasing payroll:
7.27
 plan
 payroll growth assumption
7.28
7.29
 general state employees retirement plan of the
Minnesota State Retirement System
3.5%
7.30
 correctional state employees retirement plan
3.5
7.31
 State Patrol retirement plan
3.5
7.32
 judges retirement plan
2.75
7.33
7.34
 general employees retirement plan of the Public
Employees Retirement Association
3.5
7.35
 public employees police and fire retirement plan
3.5
7.36
 local government correctional service retirement plan
3.5
7.37
 teachers retirement plan
 3.75
7.38
 St. Paul teachers retirement plan
 4
7.39    (e) The assumptions set forth in paragraphs (c) and (d) continue to apply, unless a
7.40different salary assumption or a different payroll increase assumption:
7.41    (1) has been proposed by the governing board of the applicable retirement plan;
8.1    (2) is accompanied by the concurring recommendation of the actuary retained under
8.2section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the
8.3most recent actuarial valuation report if section 356.214 does not apply; and
8.4    (3) has been approved or deemed approved under subdivision 18.
8.5EFFECTIVE DATE.This section is effective June 30, 2016.

8.6    Sec. 4. Minnesota Statutes 2015 Supplement, section 356.215, subdivision 11, is
8.7amended to read:
8.8    Subd. 11. Amortization contributions. (a) In addition to the exhibit indicating
8.9the level normal cost, the actuarial valuation of the retirement plan must contain an
8.10exhibit for financial reporting purposes indicating the additional annual contribution
8.11sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit
8.12for contribution determination purposes indicating the additional contribution sufficient
8.13to amortize the unfunded actuarial accrued liability. For the retirement plans listed in
8.14subdivision 8, paragraph (c), but excluding the legislators retirement plan, the additional
8.15contribution must be calculated on a level percentage of covered payroll basis by the
8.16established date for full funding in effect when the valuation is prepared, assuming annual
8.17payroll growth at the applicable percentage rate set forth in subdivision 8, paragraph (d).
8.18For all other retirement plans and for the legislators retirement plan, the additional annual
8.19contribution must be calculated on a level annual dollar amount basis.
8.20    (b) For any retirement plan other than a retirement plan governed by paragraph (d),
8.21(e), (f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions
8.22used for calculating the actuarial accrued liability of the fund, a change in the benefit
8.23plan governing annuities and benefits payable from the fund, a change in the actuarial
8.24cost method used in calculating the actuarial accrued liability of all or a portion of the
8.25fund, or a combination of the three, which change or changes by itself or by themselves
8.26without inclusion of any other items of increase or decrease produce a net increase in the
8.27unfunded actuarial accrued liability of the fund, the established date for full funding is the
8.28first actuarial valuation date occurring after June 1, 2020.
8.29    (c) For any retirement plan, if there has been a change in any or all of the actuarial
8.30assumptions used for calculating the actuarial accrued liability of the fund, a change in
8.31the benefit plan governing annuities and benefits payable from the fund, a change in the
8.32actuarial cost method used in calculating the actuarial accrued liability of all or a portion
8.33of the fund, or a combination of the three, and the change or changes, by itself or by
8.34themselves and without inclusion of any other items of increase or decrease, produce a net
9.1increase in the unfunded actuarial accrued liability in the fund, the established date for full
9.2funding must be determined using the following procedure:
9.3    (i) the unfunded actuarial accrued liability of the fund must be determined in
9.4accordance with the plan provisions governing annuities and retirement benefits and the
9.5actuarial assumptions in effect before an applicable change;
9.6    (ii) the level annual dollar contribution or level percentage, whichever is applicable,
9.7needed to amortize the unfunded actuarial accrued liability amount determined under item
9.8(i) by the established date for full funding in effect before the change must be calculated
9.9using the interest assumption specified in subdivision 8 in effect before the change;
9.10    (iii) the unfunded actuarial accrued liability of the fund must be determined in
9.11accordance with any new plan provisions governing annuities and benefits payable from
9.12the fund and any new actuarial assumptions and the remaining plan provisions governing
9.13annuities and benefits payable from the fund and actuarial assumptions in effect before
9.14the change;
9.15    (iv) the level annual dollar contribution or level percentage, whichever is applicable,
9.16needed to amortize the difference between the unfunded actuarial accrued liability amount
9.17calculated under item (i) and the unfunded actuarial accrued liability amount calculated
9.18under item (iii) over a period of 30 years from the end of the plan year in which the
9.19applicable change is effective must be calculated using the applicable interest assumption
9.20specified in subdivision 8 in effect after any applicable change;
9.21    (v) the level annual dollar or level percentage amortization contribution under item
9.22(iv) must be added to the level annual dollar amortization contribution or level percentage
9.23calculated under item (ii);
9.24    (vi) the period in which the unfunded actuarial accrued liability amount determined
9.25in item (iii) is amortized by the total level annual dollar or level percentage amortization
9.26contribution computed under item (v) must be calculated using the interest assumption
9.27specified in subdivision 8 in effect after any applicable change, rounded to the nearest
9.28integral number of years, but not to exceed 30 years from the end of the plan year in which
9.29the determination of the established date for full funding using the procedure set forth in this
9.30clause is made and not to be less than the period of years beginning in the plan year in which
9.31the determination of the established date for full funding using the procedure set forth in
9.32this clause is made and ending by the date for full funding in effect before the change; and
9.33    (vii) the period determined under item (vi) must be added to the date as of which
9.34the actuarial valuation was prepared and the date obtained is the new established date
9.35for full funding.
10.1    (d) For the general employees retirement plan of the Public Employees Retirement
10.2Association, the established date for full funding is June 30, 2031.
10.3    (e) For the Teachers Retirement Association, the established date for full funding is
10.4June 30, 2037 2046.
10.5    (f) For the correctional state employees retirement plan of the Minnesota State
10.6Retirement System, the established date for full funding is June 30, 2038.
10.7    (g) For the judges retirement plan, the established date for full funding is June
10.830, 2038.
10.9    (h) For the public employees police and fire retirement plan, the established date
10.10for full funding is June 30, 2038.
10.11    (i) For the St. Paul Teachers Retirement Fund Association, the established date for
10.12full funding is June 30, 2042. In addition to other requirements of this chapter, the annual
10.13actuarial valuation must contain an exhibit indicating the funded ratio and the deficiency
10.14or sufficiency in annual contributions when comparing liabilities to the market value of
10.15the assets of the fund as of the close of the most recent fiscal year.
10.16(j) For the general state employees retirement plan of the Minnesota State Retirement
10.17System, the established date for full funding is June 30, 2040.
10.18    (k) For the retirement plans for which the annual actuarial valuation indicates an
10.19excess of valuation assets over the actuarial accrued liability, the valuation assets in
10.20excess of the actuarial accrued liability must be recognized as a reduction in the current
10.21contribution requirements by an amount equal to the amortization of the excess expressed
10.22as a level percentage of pay over a 30-year period beginning anew with each annual
10.23actuarial valuation of the plan.
10.24EFFECTIVE DATE.This section is effective the day following final enactment.

10.25    Sec. 5. Minnesota Statutes 2015 Supplement, section 356.415, subdivision 1a, is
10.26amended to read:
10.27    Subd. 1a. Annual postretirement adjustments; Minnesota State Retirement
10.28System plans other than the State Patrol and judges retirement plan plans. (a)
10.29Retirement annuity, disability benefit, or survivor benefit recipients of the legislators
10.30retirement plan, including constitutional officers as specified in chapter 3A, the general
10.31state employees retirement plan, the correctional state employees retirement plan, and
10.32the unclassified state employees retirement program are entitled to a postretirement
10.33adjustment annually on January 1, as follows:
10.34(1) for each successive January 1, if the definition of funding stability under
10.35paragraph (b) has not been met as of the prior July 1 for or with respect to the applicable
11.1retirement plan, effective January 1, 2017, through December 31, 2017, a postretirement
11.2increase of two 1.75 percent must be applied each year, effective on January 1, to the
11.3monthly annuity or benefit of each annuitant or benefit recipient who has been receiving
11.4an annuity or a benefit for at least 12 full months as of the June 30 of the calendar year
11.5immediately before the adjustment; and
11.6(2) for each successive January 1, if the definition of funding stability under
11.7paragraph (b) has not been met as of the prior July 1 for or with respect to the applicable
11.8retirement plan, effective January 1, 2017, through December 31, 2017, for each annuitant
11.9or benefit recipient who has been receiving an annuity or a benefit for at least one full
11.10month, but less than 12 full months as of the June 30 of the calendar year immediately
11.11before the adjustment, an annual postretirement increase of 1/12 of two 1.75 percent for
11.12each month that the person has been receiving an annuity or benefit must be applied.;
11.13(3) effective January 1, 2018, a postretirement increase of two percent must be
11.14applied to the monthly annuity or benefit of each annuitant or benefit recipient who has
11.15been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the
11.16calendar year immediately before the adjustment; and
11.17(4) effective January 1, 2018, for each annuitant or benefit recipient who has been
11.18receiving an annuity or a benefit for at least one full month, but less than 12 full months
11.19as of the June 30 of the calendar year immediately before the adjustment, an annual
11.20postretirement increase of 1/12 of two percent for each month that the person has been
11.21receiving an annuity or benefit must be applied.
11.22(b) Increases under this subdivision for the general state employees retirement
11.23plan or the correctional state employees retirement plan terminate on December 31 of
11.24the calendar year in which two prior consecutive actuarial valuations prepared by the
11.25approved actuary under sections 356.214 and 356.215 and the standards for actuarial work
11.26promulgated by the Legislative Commission on Pensions and Retirement indicate that the
11.27market value of assets of the retirement plan equals or exceeds 90 percent of the actuarial
11.28accrued liability of the retirement plan and increases under subdivision 1 recommence
11.29after that date. Increases under this subdivision for the legislators retirement plan
11.30established under chapter 3A, including the constitutional officers specified in that chapter,
11.31and for the unclassified state employees retirement program, terminate on December 31
11.32of the calendar year in which two prior consecutive actuarial valuations prepared by the
11.33approved actuary under sections 356.214 and 356.215 and the standards for actuarial work
11.34promulgated by the Legislative Commission on Pensions and Retirement indicate that the
11.35market value of assets of the general state employees retirement plan equals or exceeds
12.190 percent of the actuarial accrued liability of the retirement plan and increases under
12.2subdivision 1 recommence after that date.
12.3(c) After having met the definition of funding stability under paragraph (b), the
12.4increase provided in paragraph (a), clauses (1) and (2), rather than an increase under
12.5subdivision 1, for the general state employees retirement plan or the correctional state
12.6employees retirement plan, is again to be applied in a subsequent year or years if the
12.7market value of assets of the applicable plan equals or is less than:
12.8(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
12.9consecutive actuarial valuations; or
12.10(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
12.11recent actuarial valuation.
12.12(d) After having met the definition of funding stability under paragraph (b), the
12.13increase provided in paragraph (a), clauses (1) and (2), rather than an increase under
12.14subdivision 1, for the legislators retirement plan, including the constitutional officers,
12.15and for the unclassified state employees retirement program, is again to be applied in a
12.16subsequent year or years if the market value of assets of the general state employees
12.17retirement plan equals or is less than:
12.18(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
12.19consecutive actuarial valuations; or
12.20(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
12.21recent actuarial valuation.
12.22(e) (b) An increase in annuity or benefit payments under this subdivision must be
12.23made automatically unless written notice is filed by the annuitant or benefit recipient
12.24with the executive director of the applicable covered retirement plan requesting that the
12.25increase not be made.
12.26EFFECTIVE DATE.This section is effective June 30, 2016.

12.27    Sec. 6. Minnesota Statutes 2015 Supplement, section 356.415, subdivision 1d, is
12.28amended to read:
12.29    Subd. 1d. Teachers Retirement Association annual postretirement adjustments.
12.30(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers
12.31Retirement Association are entitled to a postretirement adjustment annually on January
12.321, as follows:
12.33(1) for each January 1 until funding stability is restored, effective January 1, 2017,
12.34through December 31, 2017, a postretirement increase of two one percent must be applied
12.35each year, effective on January 1, to the monthly annuity or benefit amount of each
13.1annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 12
13.2full months as of the June 30 of the calendar year immediately before the adjustment;
13.3(2) for each January 1 until funding stability is restored effective January 1, 2017,
13.4through December 31, 2017, for each annuitant or benefit recipient who has been receiving
13.5an annuity or a benefit for at least one full month, but less than 12 full months as of the
13.6June 30 of the calendar year immediately before the adjustment, an annual postretirement
13.7increase of 1/12 of two one percent for each month the person has been receiving an
13.8annuity or benefit must be applied;
13.9(3) for each January 1 following the restoration of funding stability effective January
13.101, 2018, and thereafter, a postretirement increase of 2.5 two percent must be applied each
13.11year, effective January 1, to the monthly annuity or benefit amount of each annuitant or
13.12benefit recipient who has been receiving an annuity or a benefit for at least 12 full months
13.13as of the June 30 of the calendar year immediately before the adjustment; and
13.14(4) for each January 1 following the restoration of funding stability effective January
13.151, 2018, and thereafter, for each annuitant or benefit recipient who has been receiving an
13.16annuity or a benefit for at least one full month, but less than 12 full months as of the June
13.1730 of the calendar year immediately before the adjustment, an annual postretirement
13.18increase of 1/12 of 2.5 two percent for each month the person has been receiving an
13.19annuity or benefit must be applied.
13.20(b) Funding stability is restored when the market value of assets of the Teachers
13.21Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities
13.22of the Teachers Retirement Association in the two most recent prior actuarial valuations
13.23prepared under section 356.215 and the standards for actuarial work by the approved
13.24actuary retained by the Teachers Retirement Association under section 356.214.
13.25(c) After having met the definition of funding stability under paragraph (b), the
13.26increase provided in paragraph (a), clauses (1) and (2), rather than an increase under
13.27subdivision 1, or the increase under paragraph (a), clauses (3) and (4), is again to be applied
13.28in a subsequent year or years if the market value of assets of the plan equals or is less than:
13.29(1) 85 percent of the actuarial accrued liabilities of the plan for two consecutive
13.30actuarial valuations; or
13.31(2) 80 percent of the actuarial accrued liabilities of the plan for the most recent
13.32actuarial valuation.
13.33(d) (b) An increase in annuity or benefit payments under this section must be made
13.34automatically unless written notice is filed by the annuitant or benefit recipient with the
13.35executive director of the Teachers Retirement Association requesting that the increase
13.36not be made.
14.1(e) (c) The retirement annuity payable to a person who retires before becoming
14.2eligible for Social Security benefits and who has elected the optional payment as provided
14.3in section 354.35 must be treated as the sum of a period-certain retirement annuity
14.4and a life retirement annuity for the purposes of any postretirement adjustment. The
14.5period-certain retirement annuity plus the life retirement annuity must be the annuity
14.6amount payable until age 62, 65, or normal retirement age, as selected by the member
14.7at retirement, for an annuity amount payable under section 354.35. A postretirement
14.8adjustment granted on the period-certain retirement annuity must terminate when the
14.9period-certain retirement annuity terminates.
14.10EFFECTIVE DATE.This section is effective the day following final enactment.

14.11    Sec. 7. Minnesota Statutes 2015 Supplement, section 356.415, subdivision 1e, is
14.12amended to read:
14.13    Subd. 1e. Annual postretirement adjustments; State Patrol retirement plan.
14.14(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
14.15retirement plan are entitled to a postretirement adjustment annually on January 1 if the
14.16definition of funding stability under paragraph (b) has not been met, as follows:
14.17(1) a postretirement increase of one percent must be applied each year, effective on
14.18January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
14.19has been receiving an annuity or a benefit for at least 12 full months as of the June 30 of
14.20the calendar year immediately before the adjustment; and
14.21(2) for each annuitant or benefit recipient who has been receiving an annuity or
14.22a benefit for at least one full month, but less than 12 full months as of the June 30 of
14.23the calendar year immediately before the adjustment, an annual postretirement increase
14.24of 1/12 of one percent for each month that the person has been receiving an annuity or
14.25benefit must be applied.
14.26(b) Increases under paragraph (a) for the State Patrol retirement plan terminate on
14.27December 31 of the calendar year in which two prior consecutive actuarial valuations for
14.28the plan prepared by the approved actuary under sections 356.214 and 356.215 and the
14.29standards for actuarial work promulgated by the Legislative Commission on Pensions
14.30and Retirement indicates that the market value of assets of the retirement plan equals or
14.31exceeds 85 percent of the actuarial accrued liability of the retirement plan. Thereafter,
14.32increases under paragraph (a) become effective again on the December 31 of the calendar
14.33year in which the actuarial valuation, or prior consecutive actuarial valuations for the
14.34plan prepared by the approved actuary under sections 356.214 and 356.215 and the
14.35standards for actuarial work promulgated by the Legislative Commission on Pensions and
15.1Retirement indicates that the market value of the assets of the retirement plan equals or is
15.2less than 80 percent of the actuarial accrued liability of the retirement plan for two years,
15.3or equals or is less than 75 percent of the actuarial accrued liability of the retirement plan
15.4for one year and increases under paragraph (c) commence after that date.
15.5(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State
15.6Patrol retirement plan are entitled to a postretirement adjustment annually on January 1 if
15.7the definition of funding stability under paragraph (b) has been met, as follows:
15.8(1) a postretirement increase of 1.5 percent must be applied each year, effective on
15.9January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
15.10has been receiving an annuity or a benefit for at least 12 full months as of the June 30 of
15.11the calendar year immediately before the adjustment; and
15.12(2) for each annuitant or benefit recipient who has been receiving an annuity or
15.13a benefit for at least one full month, but less than 12 full months as of the June 30 of
15.14the calendar year immediately before the adjustment, an annual postretirement increase
15.15of 1/12 of 1.5 percent for each month that the person has been receiving an annuity or
15.16benefit must be applied.
15.17(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on
15.18December 31 of the calendar year in which two prior consecutive actuarial valuations
15.19prepared by the approved actuary under sections 356.214 and 356.215 and the standards
15.20for actuarial work adopted by the Legislative Commission on Pensions and Retirement
15.21indicates that the market value of assets of the retirement plan equals or exceeds 90 percent
15.22of the actuarial accrued liability of the retirement plan and increases under subdivision
15.231 recommence paragraph (e) commence after that date.
15.24(e) Retirement annuity, disability benefit, or survivor benefit recipients of the State
15.25Patrol retirement plan are entitled to a postretirement adjustment annually on January 1 if
15.26the definition of funding stability under paragraph (d) has been met, as follows:
15.27(1) a postretirement increase of 2.5 percent must be applied each year, effective on
15.28January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
15.29has been receiving an annuity or a benefit for at least 12 full months as of the June 30 of
15.30the calendar year immediately before the adjustment; and
15.31(2) for each annuitant or benefit recipient who has been receiving an annuity or
15.32a benefit for at least one full month, but less than 12 full months as of the June 30 of
15.33the calendar year immediately before the adjustment, an annual postretirement increase
15.34of 1/12 of 2.5 percent for each month that the person has been receiving an annuity or
15.35benefit must be applied.
16.1(e) (f) An increase in annuity or benefit payments under this subdivision must be
16.2made automatically unless written notice is filed by the annuitant or benefit recipient
16.3with the executive director of the applicable covered retirement plan requesting that the
16.4increase not be made.
16.5EFFECTIVE DATE.This section is effective June 30, 2016.

16.6    Sec. 8. Minnesota Statutes 2015 Supplement, section 356.415, subdivision 1f, is
16.7amended to read:
16.8    Subd. 1f. Annual postretirement adjustments; Minnesota State Retirement
16.9System judges retirement plan. (a) The increases provided under this subdivision are in
16.10lieu of increases under subdivision 1 or 1a for retirement annuity, disability benefit, or
16.11survivor benefit recipients of the judges retirement plan.
16.12(b) (a) Retirement annuity, disability benefit, or survivor benefit recipients of the
16.13judges retirement plan are entitled to a postretirement adjustment annually on January 1 if
16.14the definition of funding stability under paragraph (b) has not been met, as follows:
16.15(1) a postretirement increase of 1.75 percent must be applied each year, effective on
16.16January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
16.17has been receiving an annuity or a benefit for at least 12 full months as of the June 30 of
16.18the calendar year immediately before the adjustment; and
16.19(2) for each annuitant or benefit recipient who has been receiving an annuity or a
16.20benefit for at least one full month, but less than 12 full months as of the June 30 of the
16.21calendar year immediately before the adjustment, an annual postretirement increase of
16.221/12 of 1.75 percent for each month that the person has been receiving an annuity or
16.23benefit must be applied.
16.24(c) (b) Increases under this subdivision paragraph (a) terminate on December 31
16.25of the calendar year in which two prior consecutive actuarial valuations prepared by the
16.26approved actuary under sections 356.214 and 356.215 and the standards for actuarial work
16.27promulgated by the Legislative Commission on Pensions and Retirement indicates that
16.28the market value of assets of the judges retirement plan equals or exceeds 70 percent of
16.29the actuarial accrued liability of the retirement plan. and increases under subdivision
16.301 or 1a, whichever is applicable, begin on the January 1 next following paragraph (c)
16.31commence after that date.
16.32(c) Retirement annuity, disability benefit, or survivor benefit recipients of the judges
16.33retirement plan are entitled to a postretirement adjustment annually on January 1 if the
16.34definition of funding stability under paragraph (d) has not been met, as follows:
17.1(1) a postretirement increase of two percent must be applied each year, effective on
17.2January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
17.3has been receiving an annuity or a benefit for at least 12 full months as of the June 30 of
17.4the calendar year immediately before the adjustment; and
17.5(2) for each annuitant or benefit recipient who has been receiving an annuity or a
17.6benefit for at least one full month, but less than 12 full months as of the June 30 of the
17.7calendar year immediately before the adjustment, an annual postretirement increase of
17.81/12 of two percent for each month that the person has been receiving an annuity or
17.9benefit must be applied.
17.10(d) Increases under paragraph (c) terminate on December 31 of the calendar year
17.11in which two prior consecutive actuarial valuations prepared by the approved actuary
17.12under sections 356.214 and 356.215 and the standards for actuarial work adopted by the
17.13Legislative Commission on Pensions and Retirement indicates that the market value of
17.14assets of the judges retirement plan equals or exceeds 90 percent of the actuarial accrued
17.15liability of the retirement plan and increases under paragraph (e) commence after that date.
17.16(e) Retirement annuity, disability benefit, or survivor benefit recipients of the judges
17.17retirement plan are entitled to a postretirement adjustment annually on January 1 if the
17.18definition of funding stability under paragraph (d) has been met, as follows:
17.19(1) a postretirement increase of 2.5 percent must be applied each year, effective on
17.20January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
17.21has been receiving an annuity or a benefit for at least 12 full months as of the June 30 of
17.22the calendar year immediately before the adjustment; and
17.23(2) for each annuitant or benefit recipient who has been receiving an annuity or
17.24a benefit for at least one full month, but less than 12 full months as of the June 30 of
17.25the calendar year immediately before the adjustment, an annual postretirement increase
17.26of 1/12 of 2.5 percent for each month that the person has been receiving an annuity or
17.27benefit must be applied.
17.28(d) (f) An increase in annuity or benefit payments under this subdivision must be
17.29made automatically unless written notice is filed by the annuitant or benefit recipient
17.30with the executive director of the applicable covered retirement plan requesting that the
17.31increase not be made.
17.32EFFECTIVE DATE.This section is effective June 30, 2016.

17.33    Sec. 9. Minnesota Statutes 2014, section 490.121, subdivision 25, is amended to read:
17.34    Subd. 25. Tier I. "Tier I" is the benefit program of the retirement plan with a
17.35membership specified by section 490.1221, paragraph (b), and governed by sections
18.1356.415, subdivisions 1 and subdivision 1f; and 490.121 to 490.133, except as modified
18.2in sections 490.121, subdivision 21f, paragraph (b); 490.1222; 490.123, subdivision 1a,
18.3paragraph (b); and 490.124, subdivision 1, paragraphs (c) and (d).
18.4EFFECTIVE DATE.This section is effective June 30, 2016.

18.5    Sec. 10. Minnesota Statutes 2014, section 490.121, subdivision 26, is amended to read:
18.6    Subd. 26. Tier II. "Tier II" is the benefit program of the retirement plan with a
18.7membership specified by section 490.1221, paragraph (c), and governed by sections
18.8356.415, subdivisions 1 and subdivision 1f; 490.121 to 490.133, as modified in section
18.9490.121, subdivision 21f , paragraph (b); 490.1222; 490.123, subdivision 1a, paragraph
18.10(b); and 490.124, subdivision 1, paragraphs (c) and (d).
18.11EFFECTIVE DATE.This section is effective June 30, 2016.

18.12    Sec. 11. REPEALER.
18.13(a) Minnesota Statutes 2015 Supplement, section 356.415, subdivision 1, is repealed.
18.14(b) Minnesota Statutes 2015 Supplement, section 354A.29, subdivisions 8 and
18.159, are repealed.
18.16EFFECTIVE DATE.Paragraph (a) is effective June 30, 2016. Paragraph (b) is
18.17effective July 1, 2016.
"18.18Renumber the articles in sequence
18.19Amend the title accordingly