1.1.................... moves to amend document LCPR17-038, as follows:
1.2Pages 11 to 18, delete sections 1 to 5 and insert:

1.3    "Section 1. Minnesota Statutes 2016, section 126C.10, subdivision 37, is amended to read:
1.4    Subd. 37. Pension adjustment revenue. A school district's pension adjustment revenue
1.5equals the sum of:
1.6(1) the greater of zero or the product of:
1.7(i) the difference between the teacher retirement fund employer contribution rate
1.8established in section 354.42 or 354A.12 for the current fiscal year and the employer
1.9contribution rate for fiscal year 2017; and
1.10(ii) the salaries paid to employees who are members of the Teachers Retirement
1.11Association or the St. Paul Teachers Retirement Association for the previous fiscal year;
1.12and
1.13(2) the greater of zero or the product of:
1.14(1) (i) the difference between the district's adjustment under Minnesota Statutes 2012,
1.15section 127A.50, subdivision 1, for fiscal year 2014 per adjusted pupil unit and the state
1.16average adjustment under Minnesota Statutes 2012, section 127A.50, subdivision 1, for
1.17fiscal year 2014 per adjusted pupil unit; and
1.18(2) (ii) the district's adjusted pupil units for the fiscal year.
1.19EFFECTIVE DATE.This section is effective for fiscal year 2018 and later.

1.20    Sec. 2. Minnesota Statutes 2016, section 354.44, subdivision 5, is amended to read:
1.21    Subd. 5. Resumption of teaching service after retirement. (a) Any If a person who
1.22retired is receiving a retirement annuity under the provisions of this chapter and has thereafter
1.23resumed resumes teaching in with any employer unit to which this chapter applies:
1.24    (1) the person is eligible to continue to receive annuity payments in accordance with the
1.25annuity except that all or a portion of the annuity payments must be deferred during the
1.26calendar year immediately following the fiscal year in which the person's salary from the
1.27teaching service is in an amount greater than exceeds $46,000. The amount of the annuity
1.28deferral is one-half of the salary amount in excess of $46,000 and must be deducted from
1.29the annuity payable for the calendar year immediately following the fiscal year in which
1.30the excess amount was earned.; and
2.1    (2) if the person resumed teaching on or after July 1, 2017, the employer shall make the
2.2regular employer contributions specified in section 354.42, subdivision 3, paragraph (c),
2.3based on the person's salary as defined in paragraph (e), clauses (1) and (2).
2.4    (b) If the person is retired for only a fractional part of the fiscal year during the initial
2.5year of retirement, the maximum reemployment salary exempt from triggering a deferral
2.6as threshold dollar amount specified in this subdivision paragraph (a), clause (1), must be
2.7prorated for that fiscal year.
2.8    (c) After a person has reached the Social Security normal retirement age, no deferral
2.9requirement is applicable regardless of the amount of salary.
2.10    (d) The amount of the retirement annuity deferral must be handled or disposed of as
2.11provided in section 356.47.
2.12    (e) For the purpose of this subdivision, salary from teaching service includes means:
2.13    (1) all salary or income earned as a teacher as defined in section 354.05, subdivision 2,
2.14paragraph (a), clause (1). Salary from teaching service also includes, but is not limited to:;
2.15    (1) (2) all income for services performed as a consultant, independent contractor, or
2.16third-party supplier, to an employer to which this chapter applies or as an employee of a
2.17consultant, independent contractor, or third-party supplier, to an employer unit covered by
2.18the provisions of to which this chapter applies; and
2.19    (2) the (3) if greater of either the income received than clause (1) or (2), an amount based
2.20on the rate paid with respect to a person in an administrative position, or as a consultant,
2.21independent contractor, or third-party supplier, or as an employee of a consultant, independent
2.22contractor, or third-party supplier, in to an employer unit with approximately the same
2.23number of pupils and at the same level as the position occupied by the person who resumes
2.24teaching service.
2.25(f) Notwithstanding other paragraphs of this subdivision, if the reemployed annuitant
2.26has a former spouse receiving a portion of the annuity under section 518.58, subdivision 1,
2.27the portion payable to the former spouse must not be deferred.
2.28EFFECTIVE DATE.This section is effective July 1, 2017.

2.29    Sec. 3. REPEALER.
2.30Minnesota Statutes 2016, section 354.60, is repealed."
2.31Page 24, line 9, reinstate everything before "interest" and after "rate" insert "investment
2.32return" and reinstate "assumption"
3.1Page 24, line 10, reinstate "ultimate" and after "rate" insert "investment return"
3.2Page 24, lines 11 to 14, reinstate the stricken language
3.3Page 24, line 15, reinstate everything before "interest" and after "rate" insert "investment
3.4return" and reinstate "assumption"
3.5Page 24, delete line 30
3.6Page 34, line 7, after "plan" insert ", except the Teachers Retirement Association,"
3.7Page 34, lines 12 to 13, delete "the Teachers Retirement Association and "
3.8Page 34, line 14, after "annuity" insert " for all applicable plans, except the Teachers
3.9Retirement Association, "
3.10Page 34, line 17, after the period insert " The Teachers Retirement Association must
3.11augment a deferred annuity under section 354.55, subdivision 11."
3.12Page 43, delete section 10 and insert:

3.13    "Sec. 10. Minnesota Statutes 2016, section 356.415, subdivision 1d, is amended to read:
3.14    Subd. 1d. Teachers Retirement Association annual postretirement adjustments. (a)
3.15Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers
3.16Retirement Association are entitled to a postretirement adjustment annually on, effective
3.17as of each January 1, as follows:
3.18(1) for each January 1 until funding stability is restored, effective January 1, 2018,
3.19through December 31, 2022, a postretirement increase of two one percent must be applied
3.20each year, effective on January 1, to the monthly annuity or benefit amount of each annuitant
3.21or benefit recipient who has been receiving an annuity or a benefit for at least 12 full months
3.22as of the June 30 of the calendar year immediately before the adjustment;
3.23(2) for each January 1 until funding stability is restored, effective January 1, 2018,
3.24through December 31, 2022, for each annuitant or benefit recipient who has been receiving
3.25an annuity or a benefit for at least one full month, but less than 12 full months as of the June
3.2630 of the calendar year immediately before the adjustment, an annual postretirement increase
3.27of 1/12 of two one percent for each month the person has been receiving an annuity or
3.28benefit must be applied to the monthly annuity or benefit amount of the annuitant or benefit
3.29recipient;
3.30(3) for each January 1 following the restoration of funding stability, effective January
3.311, 2023, and thereafter, a postretirement increase of 2.5 1.5 percent must be applied each
3.32year, effective January 1, to the monthly annuity or benefit amount of each annuitant or
4.1benefit recipient who has been receiving an annuity or a benefit for at least 12 full months
4.2as of the June 30 of the calendar year immediately before the adjustment; and
4.3(4) for each January 1 following the restoration of funding stability, effective January
4.41, 2023, and thereafter, for each annuitant or benefit recipient who has been receiving an
4.5annuity or a benefit for at least one full month, but less than 12 full months as of the June
4.630 of the calendar year immediately before the adjustment, an annual postretirement increase
4.7of 1/12 of 2.5 1.5 percent for each month the person has been receiving an annuity or benefit
4.8must be applied to the monthly annuity or benefit amount of the annuitant or benefit recipient.
4.9(b) Funding stability is restored when the market value of assets of the Teachers
4.10Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities of
4.11the Teachers Retirement Association in the two most recent prior actuarial valuations
4.12prepared under section 356.215 and the standards for actuarial work by the approved actuary
4.13retained by the Teachers Retirement Association under section 356.214.
4.14(c) After having met the definition of funding stability under paragraph (b), the increase
4.15provided in paragraph (a), clauses (1) and (2), rather than an increase under subdivision 1,
4.16or the increase under paragraph (a), clauses (3) and (4), is again to be applied in a subsequent
4.17year or years if the market value of assets of the plan equals or is less than:
4.18(1) 85 percent of the actuarial accrued liabilities of the plan for two consecutive actuarial
4.19valuations; or
4.20(2) 80 percent of the actuarial accrued liabilities of the plan for the most recent actuarial
4.21valuation.
4.22(d) (b) An increase in annuity or benefit payments under this section must be made
4.23automatically unless written notice is filed by the annuitant or benefit recipient with the
4.24executive director of the Teachers Retirement Association requesting that the increase not
4.25be made.
4.26(e) (c) The retirement annuity payable to a person who retires before becoming eligible
4.27for Social Security benefits and who has elected the optional payment as provided in section
4.28354.35 must be treated as the sum of a period-certain retirement annuity and a life retirement
4.29annuity for the purposes of any postretirement adjustment. The period-certain retirement
4.30annuity plus the life retirement annuity must be the annuity amount payable until age 62,
4.3165, or normal retirement age, as selected by the member at retirement, for an annuity amount
4.32payable under section 354.35. A postretirement adjustment granted on the period-certain
4.33retirement annuity must terminate when the period-certain retirement annuity terminates.
5.1EFFECTIVE DATE.This section is effective the day following final enactment."
5.2Page 90, delete section 12 and insert:

5.3    "Sec. 2. Minnesota Statutes 2016, section 354.42, subdivision 3, is amended to read:
5.4    Subd. 3. Employer. (a) The regular employer contribution to the fund by Special School
5.5District No. 1, Minneapolis, is an amount equal to the applicable following percentage of
5.6salary of each coordinated member and the applicable percentage of salary of each basic
5.7member specified in paragraph (c).
5.8The additional employer contribution to the fund by Special School District No. 1,
5.9Minneapolis, is an amount equal to 3.64 percent of the salary of each teacher who is a
5.10coordinated member or who is a basic member.
5.11(b) The regular employer contribution to the fund by Independent School District No.
5.12709, Duluth, is an amount equal to the applicable percentage of salary of each old law or
5.13new law coordinated member specified for the coordinated program in paragraph (c).
5.14(c) The employer contribution to the fund for every other employer is an amount equal
5.15to the applicable following percentage of the salary of each coordinated member and the
5.16applicable following percentage of the salary of each basic member:

5.17		Period	Coordinated Member			Basic Member
5.18		from July 1, 2013, until June 30, 2014		7 percent		11 percent
5.19 5.20		after June 30, 2014 from July 1, 2014, through June 30, 2017		7.5 percent		11.5 percent
5.21		from July 1, 2017, through June 30, 2018		8.0 percent		11.5 percent
5.22		from July 1, 2018, through June 30, 2019		8.5 percent		11.5 percent
5.23		from July 1, 2019, through June 30, 2020		9.0 percent		11.5 percent
5.24		after June 30, 2020		9.5 percent		11.5 percent

5.25(d) When an employer contribution rate changes for a fiscal year, the new contribution
5.26rate is effective for the entire salary paid for each employer unit with the first payroll cycle
5.27reported.
5.28(e) After June 30, 2015, if a contribution rate revision is made under subdivisions 4a,
5.294b, and 4c, the employer contributions under paragraphs (a), (b), and (c) must be adjusted
5.30accordingly.
5.31EFFECTIVE DATE.This section is effective the day following final enactment."
5.32Page 81, line 20, delete "before July 1, 2017"
5.33Page 81, delete line 21
6.1Page 90, delete section 11
6.2Renumber the sections in sequence
6.3Amend the title accordingly