1.1    Senator Betzold moved to amend S.F. No. 430, the second engrossment, as
1.2follows:
1.3Pages 108, after line 2, insert:


1.7    Section 1. ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION;
1.8PILOT POSTRETIREMENT ADJUSTMENT; LIMITATIONS.
1.9    (a) Notwithstanding any provision of Minnesota Statutes, chapter 354A, to the
1.10contrary, for calendar years 2008 and 2009 and for postretirement adjustments initially
1.11payable on January 1, 2008, or January 1, 2009, as a pilot program this section supersedes
1.12Minnesota Statutes, section 354A.29, subdivisions 3 and 4, and the applicable bylaw
1.13provisions of the St. Paul Teachers Retirement Fund Association.
1.14    (b) The postretirement adjustment under the pilot program must be determined by
1.15the executive director and approved by the board annually using the procedures under
1.16this section.
1.17    (c) On January 1, each eligible person who has accrued or received an annuity or
1.18benefit under the articles of incorporation, the bylaws, or this chapter for at least three full
1.19calendar months as of the end of the calendar year is eligible to receive a postretirement
1.20adjustment that is payable the following January 1.
1.21    (d) A percentage adjustment must be computed and paid under this paragraph to
1.22eligible persons under paragraph (c). This adjustment is determined by reference to the
1.23Consumer Price Index for urban wage earners and clerical workers all items index as
1.24reported by the Bureau of Labor Statistics within the United States Department of Labor
1.25each year as part of the determination of annual cost-of-living adjustments to recipients of
1.26federal old-age, survivors, and disability insurance. For calculations of the cost-of-living
1.27adjustment under paragraph (e), the term "average third quarter Consumer Price Index
1.28value" means the sum of the monthly index values as initially reported by the Bureau of
1.29Labor Statistics for the months of July, August, and September, divided by 3.
1.30    (e) Before January 1 of each year, the executive director must calculate the amount
1.31of the cost-of-living adjustment by dividing the most recent average third quarter index
1.32value by the same average third quarter index value from the previous year, subtract one
1.33from the resulting quotient, and express the result as a percentage amount, which must be
1.34rounded to the nearest one-tenth of one percent. The final amount may not be a negative
1.35number and may not exceed 2.5 percent if the rate of investment return of the retirement
1.36fund either for the most recent fiscal year or for the most recent five-year period, each
2.1calculated under the formula specified in Minnesota Statutes, section 11A.04, clause (11),
2.2is less than 8.5 percent and may not exceed 5.0 percent if the rate of investment return of
2.3the retirement fund both for the most recent fiscal year and for the most recent five-year
2.4period, each calculated under the formula specified in Minnesota Statutes, section 11A.04,
2.5clause (11), are equal to or greater than 8.5 percent.
2.6    (f) The amount calculated under paragraph (e) is the full cost-of-living adjustment
2.7to be applied as a permanent increase to the regular payment of each eligible member
2.8on January 1 of the next calendar year. For any eligible member whose effective date
2.9of benefit commencement occurred during the calendar year before the cost-of-living
2.10adjustment is applied, the full increase amount must be prorated on the basis of whole
2.11calendar quarters in benefit payment status in the calendar year prior to the January 1 on
2.12which the cost-of-living adjustment is applied, calculated to the third decimal place.
2.13    (g) This pilot postretirement adjustment program does not constitute a precedent for
2.14this or any other retirement plan.

2.15    Sec. 2. MANDATED STUDY AND REPORT ON ST. PAUL TEACHERS
2.16RETIREMENT FUND ASSOCIATION POSTRETIREMENT ADJUSTMENT
2.17EXPERIENCE.
2.18    (a) The Legislative Commission on Pensions and Retirement shall study the
2.19experience of the St. Paul Teachers Retirement Fund Association under the temporary
2.20postretirement adjustment mechanism under section 1 and shall consider any proposals
2.21or analyses presented by other Minnesota public retirement plans regarding potential
2.22or proposed postretirement adjustment mechanism changes. Following the completion
2.23of its study, on or before January 15, 2009, the Legislative Commission on Pensions
2.24and Retirement shall report to the chair of the house of representatives Committee on
2.25Governmental Operations Reform, Technology and Elections, the chair of the house of
2.26representatives Committee on Finance, the chair of the senate Committee on State and
2.27Local Government Operations and Oversight, and the chair of the senate Committee
2.28on Finance, its findings and recommendations regarding a possible continuation,
2.29modification, or elimination of the temporary mechanism specified in section 1.
2.30    (b) For fiscal years 2007 and 2008, in addition to the regular actuarial valuation
2.31prepared under Minnesota Statutes, section 356.215, the St. Paul Teachers Retirement
2.32Fund Association shall have prepared and shall file with the Legislative Commission on
2.33Pensions and Retirement a supplemental actuarial valuation report providing comparative
2.34data on the funded status, actuarial requirements, contribution sufficiency or deficiency,
2.35and any other relevant results if the temporary postretirement adjustment mechanism
3.1under section 1 was a permanent mechanism. This report must be submitted for inclusion
3.2in the study required under paragraph (a).

3.3    Sec. 3. REPEALER.
3.4Minnesota Statutes 2006, sections 354A.12, subdivision 3d; and 354A.29,
3.5subdivision 6, are repealed."
3.6Renumber the articles in sequence and correct the internal references
3.7Amend the title accordingly
3.8The motion prevailed. #did not prevail. So the amendment was #not adopted.