1.1Senator Robling moved to amend S.F. No. 191, the second engrossment, as
1.2follows:
1.3Page 100, delete article 6 and insert:


1.6    Section 1. Minnesota Statutes 2008, section 354.42, subdivision 2, is amended to read:
1.7    Subd. 2. Employee. (a) The employee contribution to the fund is an amount equal
1.8to the following percentage of the salary of a member:
1.9(1) after July 1, 2006, for a teacher employed by Special School District No. 1,
1.10Minneapolis, 5.5 percent if the teacher is a coordinated member, and 9.0 percent if the
1.11teacher is a basic member;
1.12(2) for every other teacher, after July 1, 2006, 5.5 percent if the teacher is a
1.13coordinated member and 9.0 percent if the teacher is a basic member.

1.14	Period	Coordinated Member	Basic Member
1.15	(1) before July 1, 2012	5.5 percent	9 percent
1.16 1.17	(2) after June 30, 2012, and before July 1, 2013	5.75 percent	9 percent
1.18 1.19	(3) after June 30, 2013, and before July 1, 2014	6.0 percent	9 percent
1.20 1.21	(4) unless paragraph (c) applies, after June 30, 2014, and before July 1, 2015	6.25 percent	9 percent
1.22 1.23	(5) unless paragraph (c) applies, after June 30, 2015, and before July 1, 2016	6.5 percent	9 percent
1.24 1.25	(6) unless paragraph (c) applies, after June 30, 2016, and before July 1, 2017	6.75 percent	9 percent
1.26 1.27	(7) unless paragraph (c) applies, after June 30, 2017, and before July 1, 2018	7.0 percent	9 percent
1.28 1.29	(8) unless paragraph (c) applies, after June 30, 2018, and before July 1, 2019	7.25 percent	9 percent
1.30 1.31	(9) unless paragraph (c) applies, after June 30, 2018	7.5 percent	9 percent

1.32(b) When an employee contribution rate changes for a fiscal year, the new
1.33contribution rate is effective for the entire salary paid for each employer unit with the
1.34first payroll cycle reported.
1.35(c) After July 1, 2012, a scheduled contribution increase under paragraph (a) is
1.36suspended if the most recent actuarial valuation prepared under section 356.215 indicates
1.37that there is no contribution deficiency when the total employee contributions, employer
1.38contributions under subdivision 3, and direct state aid under section 354A.12 and chapter
1.39422A are compared to the actuarial required contributions of the retirement plan.
2.1(b) (d) This contribution must be made by deduction from salary. Where any
2.2portion of a member's salary is paid from other than public funds, the member's employee
2.3contribution must be based on the entire salary received.
2.4EFFECTIVE DATE.This section is effective July 1, 2011.

2.5    Sec. 2. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision
2.6to read:
2.7    Subd. 4b. Determination. (a) For purposes of this section, a contribution
2.8sufficiency exists if the total of the employee contributions, the employer contributions,
2.9and any additional employer contributions, if applicable, exceeds the total of the normal
2.10cost, the administrative expenses, and the amortization contribution of the retirement
2.11plan as reported in the most recent actuarial valuation of the retirement plan prepared by
2.12the actuary retained under section 356.214 and prepared under section 356.215 and the
2.13standards for actuarial work of the Legislative Commission on Pensions and Retirement.
2.14(b) For purposes of this section, a contribution deficiency exists if the total employee
2.15contributions, the employer contributions, and any additional employer contributions are
2.16less than the total of the normal cost, the administrative expenses, and the amortization
2.17contribution of the retirement plan as reported in the most recent actuarial valuation of the
2.18retirement plan prepared by the actuary retained under section 356.214 and prepared under
2.19section 356.215 and the standards for actuarial work of the Legislative Commission on
2.20Pensions and Retirement.
2.21EFFECTIVE DATE.This section is effective July 1, 2011.

2.22    Sec. 3. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision
2.23to read:
2.24    Subd. 4c. Contribution rate revision. Notwithstanding the contribution rate
2.25provisions stated in plan law, the employee and employer contribution rates must be
2.26adjusted:
2.27(1) if after July 1, 2019, the regular actuarial valuations of the plan under section
2.28356.215 indicate that there is a contribution sufficiency under subdivision 2 equal to
2.29or greater than 0.5 percent of covered payroll for two consecutive years, the employee
2.30and employer contribution rates for the plan must be decreased as determined under
2.31subdivision 4 to a level such that the sufficiency equals no more than 0.25 percent of
2.32covered payroll based on the most recent actuarial valuation; or
2.33(2) if after July 1, 2019, the regular actuarial valuations of the plan under section
2.34356.215 indicate that there is a deficiency equal to or greater than 0.5 percent of covered
3.1payroll for two consecutive years, the employee and employer contribution rates for
3.2the plan must be increased as determined under subdivision 4 to a level such that no
3.3deficiency exists based on the most recent actuarial valuation.
3.4EFFECTIVE DATE.This section is effective July 1, 2011.

3.5    Sec. 4. Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision
3.6to read:
3.7    Subd. 4d. Reporting, commission review. (a) The contribution rate increase
3.8or decrease must be determined by the executive director of the Teachers Retirement
3.9Association, must be reported to the chair and the executive director of the Legislative
3.10Commission on Pensions and Retirement on or before the next February 1, and, if the
3.11Legislative Commission on Pensions and Retirement does not recommend against the
3.12rate change or does not recommend a modification in the rate change, is effective on the
3.13next July 1 following the determination by the executive director that a contribution
3.14deficiency or sufficiency has existed for two consecutive fiscal years based on the most
3.15recent actuarial valuations under section 356.215. If the actuarially required contribution
3.16exceeds or is less than the total support provided by the combined employee and employer
3.17contribution rates for the applicable plan by more than 0.5 percent of covered payroll, the
3.18plan employee and employer contribution rates must be adjusted incrementally over one
3.19or more years to a level such that there remains a contribution sufficiency of no more than
3.200.25 percent of covered payroll.
3.21(b) No incremental adjustment may exceed 0.25 percent of payroll for either the
3.22employee or employer contribution rates per year in which any adjustment is implemented.
3.23A contribution rate adjustment under this section must not be made until at least two years
3.24have passed since fully implementing a previous adjustment under this section.
3.25EFFECTIVE DATE.This section is effective July 1, 2011.

3.26    Sec. 5. Minnesota Statutes 2008, section 354A.12, subdivision 1, is amended to read:
3.27    Subdivision 1. Employee contributions. (a) The contribution required to be paid
3.28by each member of a teachers retirement fund association shall must not be less than the
3.29percentage of total salary specified below for the applicable association and program:

3.30		Association and Program	Percentage of Total Salary
3.31	Duluth Teachers Retirement Fund Association
3.32		old law and new law
3.33		coordinated programs	5.5 percent
3.34		(1) before July 1, 2012	5.5 percent
3.35		(2) after June 30, 2012, and before July 1, 2013	5.75 percent
4.1		(3) after June 30, 2013, and before July 1, 2014	6.0 percent
4.2 4.3		(4) unless paragraph (b) applies, after June 30, 2014, and before July 1, 2015	6.25 percent
4.4 4.5		(5) unless paragraph (b) applies, after June 30, 2015, and before July 1, 2016	6.5 percent
4.6 4.7		(6) unless paragraph (b) applies, after June 30, 2016, and before July 1, 2017	6.75 percent
4.8 4.9		(7) unless paragraph (b) applies, after June 30, 2017, and before July 1, 2018	7.0 percent
4.10 4.11		(8) unless paragraph (b) applies, after June 30, 2018, and before July 1, 2019	7.25 percent
4.12 4.13		(9) unless paragraph (b) applies, after June 30, 2019	7.5 percent
4.14	St. Paul Teachers Retirement Fund Association
4.15		basic program	8 percent
4.16		coordinated program	5.5 percent
4.17		(10) before July 1, 2012	5.5 percent
4.18		(11) after June 30, 2012, and before July 1, 2013	5.75 percent
4.19		(12) after June 30, 2013, and before July 1, 2014	6.0 percent
4.20 4.21		(13) unless paragraph (b) applies, after June 30, 2014, and before July 1, 2015	6.25 percent
4.22 4.23		(14) unless paragraph (b) applies, after June 30, 2015, and before July 1, 2016	6.5 percent
4.24 4.25		(15) unless paragraph (b) applies, after June 30, 2016, and before July 1, 2017	6.75 percent
4.26 4.27		(16) unless paragraph (b) applies, after June 30, 2017, and before July 1, 2018	7.0 percent
4.28 4.29		(17) unless paragraph (b) applies, after June 30, 2018, and before July 1, 2019	7.25 percent
4.30 4.31		(18) unless paragraph (b) applies, after June 30, 2019	7.5 percent

4.32(b) When an employee contribution rate changes for a fiscal year, the new
4.33contribution rate is effective for the entire salary paid for each employer unit with the
4.34first payroll cycle reported.
4.35(c) After July 1, 2012, a scheduled contribution increase under paragraph (a) is
4.36suspended if the most recent actuarial valuation prepared under section 356.215 indicates
4.37that there is no contribution deficiency when the total employee contributions, employer
4.38contributions under subdivision 3, and direct state aid are compared to the actuarial
4.39required contributions of the retirement plan.
4.40(d) Contributions shall must be made by deduction from salary and must be remitted
4.41directly to the respective teachers retirement fund association at least once each month.
4.42EFFECTIVE DATE.This section is effective July 1, 2011.

5.1    Sec. 6. Minnesota Statutes 2008, section 354A.12, is amended by adding a subdivision
5.2to read:
5.3    Subd. 4a. Determination. (a) For purposes of this section, a contribution sufficiency
5.4exists if, for purposes of the applicable plan, the total of the employee contributions,
5.5the employer contributions, and any additional employer contributions, if applicable,
5.6exceeds the total of the normal cost, the administrative expenses, and the amortization
5.7contribution of the retirement plan as reported in the most recent actuarial valuation of the
5.8retirement plan prepared by the actuary retained under section 356.214 and prepared under
5.9section 356.215 and the standards for actuarial work of the Legislative Commission on
5.10Pensions and Retirement.
5.11(b) For purposes of this section, a contribution deficiency exists if, for the applicable
5.12plan, the total employee contributions, employer contributions, and any additional
5.13employer contributions are less than the total of the normal cost, the administrative
5.14expenses, and the amortization contribution of the retirement plan as reported in the most
5.15recent actuarial valuation of the retirement plan prepared by the actuary retained under
5.16section 356.214 and prepared under section 356.215 and the standards for actuarial work
5.17of the Legislative Commission on Pensions and Retirement.
5.18EFFECTIVE DATE.This section is effective July 1, 2011.

5.19    Sec. 7. Minnesota Statutes 2008, section 354A.12, is amended by adding a subdivision
5.20to read:
5.21    Subd. 4b. Contribution rate revision. Notwithstanding the contribution rate
5.22provisions stated in plan law, the employee and employer contribution rates must be
5.23adjusted:
5.24(1) if after July 1, 2019, the regular actuarial valuations of the applicable plan under
5.25section 356.215 indicate that there is a contribution sufficiency under subdivision 2 equal
5.26to or greater than 0.5 percent of covered payroll for two consecutive years, the employee
5.27and employer contribution rates for the applicable plan must be decreased as determined
5.28under subdivision 4 to a level such that the sufficiency equals no more than 0.25 percent of
5.29covered payroll based on the most recent actuarial valuation; or
5.30(2) if after July 1, 2019, the regular actuarial valuations of the applicable plan under
5.31section 356.215 indicate that there is a deficiency equal to or greater than 0.5 percent of
5.32covered payroll for two consecutive years, the employee and employer contribution rates
5.33for the applicable plan must be increased as determined under subdivision 4 to a level such
5.34that no deficiency exists based on the most recent actuarial valuation.
5.35EFFECTIVE DATE.This section is effective July 1, 2011.

6.1    Sec. 8. Minnesota Statutes 2008, section 354A.12, is amended by adding a subdivision
6.2to read:
6.3    Subd. 4c. Reporting, commission review. (a) The contribution rate increase or
6.4decrease must be determined by the executive director of the Duluth Teachers Retirement
6.5Fund Association or the St. Paul Teachers Retirement Fund Association, and must be
6.6reported to the chair and the executive director of the Legislative Commission on Pensions
6.7and Retirement on or before the next February 1, and, if the Legislative Commission
6.8on Pensions and Retirement does not recommend against the rate change or does not
6.9recommend a modification in the rate change, is effective on the next July 1 following
6.10the determination by the executive director that a contribution deficiency or sufficiency
6.11has existed for two consecutive fiscal years based on the most recent actuarial valuations
6.12under section 356.215. If the actuarially required contribution exceeds or is less than
6.13the total support provided by the combined employee and employer contribution rates
6.14for the applicable plan by more than 0.5 percent of covered payroll, the applicable plan
6.15employee and employer contribution rates must be adjusted incrementally over one or
6.16more years to a level such that there remains a contribution sufficiency of no more than
6.170.25 percent of covered payroll.
6.18(b) No incremental adjustment may exceed 0.25 percent of payroll for either the
6.19employee or employer contribution rates per year in which any adjustment is implemented.
6.20For an applicable plan, a contribution rate adjustment under this section must not be
6.21made until at least two years have passed since fully implementing a previous adjustment
6.22under this section.
6.23EFFECTIVE DATE.This section is effective July 1, 2011."
6.24Amend the title accordingly
6.25The motion prevailed. #did not prevail. So the amendment was #not adopted.