1.1.................... moves to amend S.F. No. 545; H.F. No. 565, the delete everything
1.2amendment (S0545-2A) as follows:
1.3Page 119, after line 9, insert:

1.4    "Sec. 2. Minnesota Statutes 2016, section 353.651, is amended by adding a subdivision
1.5to read:
1.6    Subd. 6. Former local police and paid fire relief association postretirement
1.7adjustment. (a) The executive director of the Public Employees Retirement Association
1.8shall adjust the service pension, disability benefit, or surviving spouse benefit for any person
1.9who was a former member of a local salaried police or firefighters relief association that
1.10was governed by Minnesota Statutes 2012, section 69.77, that consolidated with the public
1.11employees police and fire retirement plan under Minnesota Statutes 2012, chapters 353A
1.12and 353B, and who elected to retain or whose benefit was a result of an election to retain
1.13the calculation of the service pension, disability benefit, or surviving spouse benefit under
1.14the former local police or firefighters relief association laws, articles of incorporation, and
1.15bylaws. The postretirement adjustment must be according to paragraph (b).
1.16(b) Effective July 1, 2017, the service pension, disability benefit, or surviving spouse
1.17benefit of persons described in paragraph (a) must be adjusted as follows:
1.18(1) all persons receiving a service pension based on 20 years or more of service or a
1.19disability benefit must have their benefits increased to $38,000 annually or by 20 percent,
1.20whichever amount is less; and
1.21(2) all surviving spouses who receive a benefit must have their benefits increased to
1.22$30,000 annually or by 20 percent, whichever is less.
1.23(c) Benefits as adjusted by paragraph (b) must continue to be adjusted on January 1,
1.242018, and each successive January 1, by the postretirement adjustment rate under section
1.25356.451, subdivision 1e.
1.26(d) The estimated increase in the actuarial accrued liability of the public employees
1.27police and fire retirement plan for the postretirement adjustments in this subdivision is
1.28$8,490,000, as of July 1, 2014. The state shall make an annual payment each July 1 to the
1.29association in an amount necessary to amortize the actuarial accrued liability in ten
1.30substantially equal annual installments, over a period that begins July 1, 2017, and ends
1.31with a final payment on July 1, 2026. The actuarial accrued liability and the annual amount
1.32shall be redetermined by the executive director of the association to take into account fewer
1.33annual payments, changes in actuarial assumptions, and other factors deemed relevant by
2.1the executive director. The executive director shall notify the state of the redetermined
2.2annual amount by June 1 each year.
2.3EFFECTIVE DATE.This section is effective the day following final enactment and
2.4the postretirement adjustment under paragraph (b) is first payable July 1, 2017."
2.5Amend the title accordingly