1.12016 OMNIBUS RETIREMENT BILL
1.2AS OF APRIL 12, 2016
1.3.................... moves to amend H.F. No. 2807; S.F. No. 2536, as follows:
1.4Delete everything after the enacting clause and insert:


1.8    Section 1. Minnesota Statutes 2015 Supplement, section 3A.03, subdivision 2, is
1.9amended to read:
1.10    Subd. 2. Refund. (a) A former member who has made contributions under
1.11subdivision 1 and who is no longer a member of the legislature is entitled to receive, upon
1.12written application to the executive director on a form prescribed by the executive director,
1.13a refund from the general fund of all contributions credited to the member's account with
1.14interest computed as provided in section 352.22, subdivision 2.
1.15    (b) The refund of contributions as provided in paragraph (a) terminates all rights of a
1.16former member of the legislature and the survivors of the former member under this chapter.
1.17    (c) If the former member of the legislature again becomes a member of the legislature
1.18after having taken a refund as provided in paragraph (a), the member is a member of the
1.19unclassified employees retirement program of the Minnesota State Retirement System.
1.20    (d) However, the member may reinstate the rights and credit for service previously
1.21forfeited under this chapter if the member repays all refunds taken, plus interest at the
1.22rate of 8.5 percent until June 30, 2015, and eight percent thereafter compounded annually
1.23from the date on which the refund was taken to the date on which the refund is repaid.
1.24Repayment must be made as provided in section 352.23, paragraph (d).
1.25    (e) No person may be required to apply for or to accept a refund.
1.26EFFECTIVE DATE.This section is effective July 1, 2016.

2.1    Sec. 2. Minnesota Statutes 2014, section 3A.03, subdivision 3, is amended to read:
2.2    Subd. 3. Legislators retirement fund. (a) The legislators retirement fund, a special
2.3retirement fund, is created within the state treasury. The legislators retirement fund must
2.4be credited with any investment proceeds on the assets of the retirement fund.
2.5(b) The payment of annuities under section 3A.115, paragraph (b), is appropriated
2.6from the legislators retirement fund.
2.7(c) The legislators retirement fund may receive transfers of general fund proceeds.
2.8EFFECTIVE DATE.This section is effective July 1, 2016.

2.9    Sec. 3. Minnesota Statutes 2014, section 16A.14, subdivision 2a, is amended to read:
2.10    Subd. 2a. Exceptions. The allotment and encumbrance system does not apply to:
2.11(1) appropriations for the courts or the legislature;
2.12(2) payment of unemployment benefits.; and
2.13(3) transactions within the defined contribution funds administered by the Minnesota
2.14State Retirement System.
2.15EFFECTIVE DATE.This section is effective July 1, 2016.

2.16    Sec. 4. Minnesota Statutes 2014, section 352.03, subdivision 5, is amended to read:
2.17    Subd. 5. Executive director;, deputy director, and assistant director. (a) The
2.18board shall appoint an executive director, in this chapter called the director, of the
2.19system must be appointed by the board on the basis of fitness education, experience in
2.20the retirement field, and leadership ability to manage and lead system staff, and ability
2.21to assist the board in setting a vision for the system. The director must have had at
2.22least five years' experience on the administrative staff of a major retirement system in
2.23either an executive level management position or in a position with responsibility for the
2.24governance, management, or administration of a retirement plan.
2.25    (b) The executive director, deputy director, and assistant director must be in the
2.26unclassified service but appointees may be selected from civil service lists if desired. The
2.27salary of the executive director must be as provided by section 15A.0815. The salary of
2.28the deputy director and assistant director must be set in accordance with section 43A.18,
2.29subdivision 3 .
2.30EFFECTIVE DATE.This section is effective July 1, 2016.

2.31    Sec. 5. Minnesota Statutes 2014, section 352.03, subdivision 6, is amended to read:
3.1    Subd. 6. Duties and powers of executive director. The management of the system
3.2is vested in the director, who is the executive and administrative head of the system. The
3.3director may appoint a deputy director and an assistant director with the approval of the
3.4board. The director shall be advisor to the board on matters pertaining to the system and
3.5shall also act as the secretary of the board. The director shall:
3.6(1) attend meetings of the board;
3.7(2) prepare and recommend to the board appropriate rules to carry out this chapter;
3.8(3) establish and maintain an adequate system of records and accounts following
3.9recognized accounting principles and controls;
3.10(4) designate an assistant director with the approval of the board;
3.11(5) (4) appoint any employees, both permanent and temporary, that are necessary to
3.12carry out the provisions of this chapter;
3.13(6) (5) organize the work of the system as the director deems necessary to fulfill the
3.14functions of the system, and define the duties of its employees and delegate to them any
3.15powers or duties, subject to the control of the director and under conditions the director
3.16may prescribe. Appointments to exercise delegated power must be by written order and
3.17shall be filed with the secretary of state;
3.18(7) (6) with the advice and consent of the board, contract for the services of an
3.19approved actuary, professional management services, and any other consulting services as
3.20necessary and fix the compensation for those services. The contracts are not subject to
3.21competitive bidding under chapter 16C. Any approved actuary retained by the executive
3.22director shall function as the actuarial advisor of the board and the executive director, and
3.23may perform actuarial valuations and experience studies to supplement those performed
3.24by the actuary retained under section 356.214. Any supplemental actuarial valuations or
3.25experience studies shall be filed with the executive director of the Legislative Commission
3.26on Pensions and Retirement. Professional management services may not be contracted for
3.27more often than once in six years. Copies of professional management survey reports must
3.28be transmitted to the secretary of the senate, the chief clerk of the house of representatives,
3.29and the Legislative Reference Library as provided by section 3.195, and to the executive
3.30director of the commission at the time as reports are furnished to the board. Only
3.31management firms experienced in conducting management surveys of federal, state, or
3.32local public retirement systems are qualified to contract with the director;
3.33(8) (7) with the advice and consent of the board provide in-service training for the
3.34employees of the system;
4.1(9) (8) make refunds of accumulated contributions to former state employees and
4.2to the designated beneficiary, surviving spouse, legal representative, or next of kin of
4.3deceased state employees or deceased former state employees, as provided in this chapter;
4.4(10) (9) determine the amount of the annuities and disability benefits of employees
4.5covered by the system and authorize payment of the annuities and benefits beginning as
4.6of the dates on which the annuities and benefits begin to accrue, in accordance with the
4.7provisions of this chapter;
4.8(11) (10) pay annuities, refunds, survivor benefits, salaries, and necessary operating
4.9expenses of the system;
4.10(12) (11) certify funds available for investment to the State Board of Investment;
4.11(13) (12) with the advice and approval of the board request the State Board of
4.12Investment to sell securities when the director determines that funds are needed for the
4.13system;
4.14(14) (13) prepare and submit to the board and the legislature an annual financial
4.15report covering the operation of the system, as required by section 356.20;
4.16(15) (14) prepare and submit biennial and annual budgets to the board and with
4.17the approval of the board submit the budgets to the Department of Management and
4.18Budget; and
4.19(16) (15) with the approval of the board, perform other duties required to administer
4.20the retirement and other provisions of this chapter and to do its business.
4.21EFFECTIVE DATE.This section is effective July 1, 2016.

4.22    Sec. 6. Minnesota Statutes 2015 Supplement, section 352.23, is amended to read:
4.23352.23 TERMINATION OF RIGHTS; REPAYMENT OF REFUND.
4.24(a) When any employee accepts a refund as provided in section 352.22, all existing
4.25allowable service credits and all rights and benefits to which the employee was entitled
4.26before accepting the refund terminate.
4.27(b) Terminated service credits and rights must not again be restored until the former
4.28employee acquires at least six months of allowable service credit after taking the last
4.29refund. In that event, the employee may repay and repays all refunds previously taken
4.30from the retirement fund with interest as provided in paragraph (d).
4.31(c) Repayment of refunds entitles the employee only to credit for service covered
4.32by (1) salary deductions; (2) payments previously made in lieu of salary deductions as
4.33permitted under law in effect when the payment in lieu of deductions was made; (3)
4.34payments made to obtain credit for service as permitted by laws in effect when payment was
5.1made; and (4) allowable service previously credited while receiving temporary workers'
5.2compensation as provided in section 352.01, subdivision 11, paragraph (a), clause (3).
5.3(d) Payments under this section for repayment of refunds are to be paid with interest
5.4at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter compounded
5.5annually from the date the refund was taken until the date the refund is repaid. They
5.6Repayment may be paid in a lump sum or by payroll deduction in the manner provided in
5.7section 352.04. Payment may be made in partial payments consistent with section 356.44
5.8during employment or in a lump sum up to six months after termination from service.
5.9EFFECTIVE DATE.This section is effective July 1, 2016.

5.10    Sec. 7. Minnesota Statutes 2015 Supplement, section 352B.11, subdivision 4, is
5.11amended to read:
5.12    Subd. 4. Reentry into state service. When a former member, who has become
5.13separated from state service that entitled the member to membership and has received
5.14a refund of retirement payments, reenters the state service in a position that entitles
5.15the member to membership, that member shall receive credit for the period of prior
5.16allowable state service if the member repays into the fund the amount of the refund, plus
5.17interest on it at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter
5.18compounded annually, at any time before subsequent retirement. Repayment may be
5.19made in installments or in a lump sum. Repayment must be made as provided in section
5.20352.23, paragraph (d).
5.21EFFECTIVE DATE.This section is effective July 1, 2016.

5.22    Sec. 8. Minnesota Statutes 2015 Supplement, section 352D.05, subdivision 4, is
5.23amended to read:
5.24    Subd. 4. Repayment of refund. (a) A participant in the unclassified program may
5.25repay regular refunds taken under section 352.22, as provided in section 352.23.
5.26(b) A participant in the unclassified program or an employee covered by the general
5.27employees retirement plan who has withdrawn the value of the total shares may repay
5.28the refund taken and thereupon restore the service credit, rights and benefits forfeited by
5.29paying into the fund the amount refunded plus interest at the rate of 8.5 percent until June
5.3030, 2015, and eight percent thereafter compounded annually from the date that the refund
5.31was taken until the date that the refund is repaid. If the participant had withdrawn only the
5.32employee shares as permitted under prior laws, repayment must be pro rata.
6.1(c) Except as provided in section 356.441, the repayment of a refund under this
6.2section must be made in a lump sum. Repayment must be made as provided in section
6.3352.23, paragraph (d).
6.4EFFECTIVE DATE.This section is effective July 1, 2016.

6.5    Sec. 9. Minnesota Statutes 2015 Supplement, section 490.124, subdivision 12, is
6.6amended to read:
6.7    Subd. 12. Refund. (a) A person who ceases to be a judge is entitled to a refund
6.8in an amount that is equal to all of the member's employee contributions to the judges'
6.9retirement fund plus interest computed under section 352.22, subdivision 2.
6.10    (b) A refund of contributions under paragraph (a) terminates all service credits and
6.11all rights and benefits of the judge and the judge's survivors under this chapter.
6.12    (c) A person who becomes a judge again after taking a refund under paragraph (a)
6.13may reinstate the previously terminated allowable service credit, rights, and benefits by
6.14repaying the total amount of the previously received refund. The refund repayment must
6.15include interest on the total amount previously received at the annual rate of 8.5 percent
6.16until June 30, 2015, and eight percent thereafter, compounded annually, from the date on
6.17which the refund was received until the date on which the refund is repaid. Repayment
6.18must be made as provided in section 352.23, paragraph (d).
6.19EFFECTIVE DATE.This section is effective July 1, 2016.


6.23    Section 1. Minnesota Statutes 2014, section 354.05, subdivision 2, is amended to read:
6.24    Subd. 2. Teacher. (a) "Teacher" means:
6.25(1) a person who renders service as a teacher, supervisor, principal, superintendent,
6.26librarian, nurse, counselor, social worker, therapist, or psychologist in:
6.27(i) a public school of the state other than in Independent School District No. 625 or
6.28in Independent School District No. 709, or in any;
6.29(ii) a charter school, irrespective of the location of the school, or in any; or
6.30(iii) a charitable, penal, or correctional institutions institution of a governmental
6.31subdivision, or ;
6.32(2) a person who is engaged in educational administration in connection with the
6.33state public school system, whether the position be a public office or an as employment;
7.1(3) a person who renders service as a charter school director or chief administrative
7.2officer, provided, however, that if the charter school director or chief administrative officer
7.3is covered by the Public Employees Retirement Association general employees retirement
7.4plan on July 1, 2016, the charter school director or chief administrative officer shall
7.5continue to be covered by that plan and not by the Teachers Retirement Association;
7.6(2) (4) an employee of the Teachers Retirement Association;
7.7(3) (5) a person who renders teaching service on a part-time basis and who also
7.8renders other services for a single employing unit where the teaching service comprises at
7.9least 50 percent of the combined employment salary is a member of the association for
7.10all services with the single employing unit or, if less than 50 percent of the combined
7.11employment salary, the executive director determines all of the combined service is
7.12covered by the association; or
7.13(4) (6) a person who is not covered by the plans established under chapter 352D,
7.14354A, or 354B and who is employed by the Board of Trustees of the Minnesota State
7.15Colleges and Universities system in an unclassified position as:
7.16(i) a president, vice-president, or dean;
7.17(ii) a manager or a professional in an academic or an academic support program
7.18other than specified in item (i);
7.19(iii) an administrative or a service support faculty position; or
7.20(iv) a teacher or a research assistant.
7.21(b) "Teacher" does not mean:
7.22(1) a person who works for a school or institution as an independent contractor as
7.23defined by the Internal Revenue Service;
7.24(2) a person who renders part-time teaching service or who is a customized trainer
7.25as defined by the Minnesota State Colleges and Universities system if (i) the service is
7.26incidental to the regular nonteaching occupation of the person; and (ii) the employer
7.27stipulates annually in advance that the part-time teaching service or customized training
7.28service will not exceed 300 hours in a fiscal year and retains the stipulation in its records;
7.29and (iii) the part-time teaching service or customized training service actually does not
7.30exceed 300 hours in a fiscal year;
7.31(3) a person exempt from licensure under section 122A.30;
7.32(4) (2) annuitants of the teachers retirement plan who are employed after retirement
7.33by an employing unit that participates in the teachers retirement plan during the course of
7.34that reemployment;
7.35(5) (3) a person who is employed by the University of Minnesota;
8.1(6) (4) a member or an officer of any general governing or managing board or body
8.2of an employing unit that participates in the teachers retirement plan; or
8.3(7) (5) a person employed by Independent School District No. 625 or Independent
8.4School District No. 709 as a teacher as defined in section 354A.011, subdivision 27.
8.5EFFECTIVE DATE.This section is effective July 1, 2016.

8.6    Sec. 2. Minnesota Statutes 2014, section 354.05, is amended by adding a subdivision
8.7to read:
8.8    Subd. 17a. Former spouse. "Former spouse" means a person who is no longer a
8.9spouse of a member due to dissolution of the marriage, legal separation, or annulment.
8.10EFFECTIVE DATE.This section is effective July 1, 2016.

8.11    Sec. 3. Minnesota Statutes 2014, section 354.06, subdivision 2, is amended to read:
8.12    Subd. 2. President; executive director. The board shall annually elect one of
8.13its members as president. It shall elect an executive director, whose salary shall be as
8.14provided by section 15A.0815. The salary of the assistant executive director who shall be
8.15in the unclassified service, shall be set in accordance with section 43A.18, subdivision 3.
8.16The executive director shall serve during the pleasure of the board and be the executive
8.17officer of the board, with such duties as the board shall prescribe. The board shall employ
8.18all other clerks and employees necessary to properly administer the association. The
8.19cost and expense of administering the provisions of this chapter shall be paid by the
8.20association. The board shall appoint an executive director shall be appointed by the
8.21board on the basis of fitness education, experience in the retirement field and leadership,
8.22ability to manage and lead system staff, and ability to assist the board in setting a vision
8.23for the system. The executive director shall have had at least five years of experience
8.24on the administrative staff of a major retirement system in either an executive-level
8.25management position or in a position with responsibility for the governance, management,
8.26or administration of a retirement plan.
8.27EFFECTIVE DATE.This section is effective July 1, 2016.

8.28    Sec. 4. Minnesota Statutes 2014, section 354.06, subdivision 2a, is amended to read:
8.29    Subd. 2a. Duties of executive director. The management of the association is
8.30vested in the executive director who shall be the executive and administrative head of
8.31the association. The executive director shall act as advisor to the board on all matters
9.1pertaining to the association and shall also act as the secretary of the board. The executive
9.2director shall:
9.3(1) attend all meetings of the board;
9.4(2) prepare and recommend to the board appropriate rules to carry out the provisions
9.5of this chapter;
9.6(3) establish and maintain an adequate system of records and accounts following
9.7recognized accounting principles and controls;
9.8(4) designate, as necessary, a deputy executive director and an assistant executive
9.9director in the unclassified service, as defined in section 43A.08, whose salaries shall
9.10be set in accordance with section 43A.18, subdivision 3, and two assistant executive
9.11directors in the classified service, as defined in section 43A.07, with the approval of the
9.12board, and appoint such employees, both permanent and temporary, as are necessary to
9.13carry out the provisions of this chapter;
9.14(5) organize the work of the association as the director deems necessary to fulfill the
9.15functions of the association, and define the duties of its employees and delegate to them
9.16any powers or duties, subject to the director's control and under such conditions as the
9.17director may prescribe;
9.18(6) with the approval of the board, contract and set the compensation for the services
9.19of an approved actuary, professional management services, and any other consulting
9.20services. These contracts are not subject to the competitive bidding procedure prescribed
9.21by chapter 16C. An approved actuary retained by the executive director shall function as
9.22the actuarial advisor of the board and the executive director and may perform actuarial
9.23valuations and experience studies to supplement those performed by the actuary retained
9.24under section 356.214. Any supplemental actuarial valuations or experience studies shall
9.25be filed with the executive director of the Legislative Commission on Pensions and
9.26Retirement. Copies of professional management survey reports must be transmitted to the
9.27secretary of the senate, the chief clerk of the house of representatives, and the Legislative
9.28Reference Library as provided by section 3.195, and to the executive director of the
9.29commission at the same time as reports are furnished to the board. Only management
9.30firms experienced in conducting management surveys of federal, state, or local public
9.31retirement systems are qualified to contract with the executive director;
9.32(7) with the approval of the board, provide in-service training for the employees
9.33of the association;
9.34(8) make refunds of accumulated contributions to former members and to the
9.35designated beneficiary, surviving spouse, legal representative, or next of kin of deceased
9.36members or deceased former members, under this chapter;
10.1(9) determine the amount of the annuities and disability benefits of members covered
10.2by the association and authorize payment of the annuities and benefits beginning as of the
10.3dates on which the annuities and benefits begin to accrue, under this chapter;
10.4(10) pay annuities, refunds, survivor benefits, salaries, and necessary operating
10.5expenses of the association;
10.6(11) prepare and submit to the board and the legislature an annual financial report
10.7covering the operation of the association, as required by section 356.20;
10.8(12) certify funds available for investment to the State Board of Investment;
10.9(13) with the advice and approval of the board, request the State Board of Investment
10.10to sell securities on determining that funds are needed for the purposes of the association;
10.11(14) prepare and submit biennial and annual budgets to the board and with the
10.12approval of the board submit those budgets to the Department of Management and
10.13Budget; and
10.14(15) with the approval of the board, perform such other duties as may be required for
10.15the administration of the association and the other provisions of this chapter and for the
10.16transaction of its business. The executive director may:
10.17(i) reduce all or part of the accrued interest and fines payable by an employing
10.18unit for reporting requirements under section 354.52, based on an evaluation of any
10.19extenuating circumstances of the employing unit;
10.20(ii) assign association employees to conduct field audits of an employing unit to
10.21ensure compliance with the provisions of this chapter; and
10.22(iii) recover overpayments, if not repaid to the association, by suspending or reducing
10.23the payment of a retirement annuity, refund, disability benefit, survivor benefit, or optional
10.24annuity under this chapter until the overpayment, plus interest, has been recovered.
10.25EFFECTIVE DATE.This section is effective July 1, 2016.

10.26    Sec. 5. Minnesota Statutes 2014, section 354.095, is amended to read:
10.27354.095 MEDICAL LEAVE.
10.28    (a) Upon granting a medical leave, an employing unit must certify the leave to the
10.29association on a form specified by the executive director. A member of the association
10.30who is on an authorized medical leave of absence is entitled to receive allowable service
10.31credit, not to exceed one year five years, for the period of leave, upon making the
10.32prescribed payment to the fund under section 354.72. A member may not receive more
10.33than one year of allowable service credit during any fiscal year by making payment under
11.1this section. A member may not receive disability benefits under section 354.48 and
11.2receive allowable service credit under this section for the same period of time.
11.3    (b) The executive director shall reject an application for disability benefits under
11.4section 354.48 if the member is applying only because an employer-sponsored provider of
11.5private disability insurance benefits requires such an application and the member would
11.6not have applied for disability benefits in the absence of such requirement. The member
11.7shall submit a copy of the disability insurance policy that requires an application for
11.8disability benefits from the plan if the member wishes to assert that the application is only
11.9being submitted because of the disability insurance policy requirement.
11.10    (c) Notwithstanding the provisions of any agreement to the contrary, employee
11.11and employer contributions may not be made to receive allowable service credit under
11.12this section if the member does not retain the right to full reinstatement both during and
11.13at the end of the medical leave.
11.14EFFECTIVE DATE.This section is effective July 1, 2016.

11.15    Sec. 6. Minnesota Statutes 2015 Supplement, section 354.44, subdivision 9, is
11.16amended to read:
11.17    Subd. 9. Determining applicable law. A former teacher who returns to covered
11.18service following a termination and who is not receiving a retirement annuity under this
11.19section must have earned at least 85 days one-half year of credited service following the
11.20return to covered service to be eligible for improved benefits resulting from any law
11.21change enacted subsequent to that termination.
11.22EFFECTIVE DATE.This section is effective July 1, 2016.

11.23    Sec. 7. Minnesota Statutes 2014, section 354.45, is amended by adding a subdivision
11.24to read:
11.25    Subd. 3. Payment upon death of former spouse. Upon the death of the former
11.26spouse to whom payments are to be made before the end of the specified payment period,
11.27payments shall be made according to the terms of a beneficiary form completed by the
11.28former spouse or, if no beneficiary form, to the estate of the former spouse.
11.29EFFECTIVE DATE.This section is effective July 1, 2016.

11.30    Sec. 8. Minnesota Statutes 2014, section 354.46, subdivision 6, is amended to read:
11.31    Subd. 6. Application. (a) A beneficiary designation and an application for benefits
11.32under this section must be in writing on a form prescribed by the executive director.
12.1(b) Sections 354.55, subdivision 11, and 354.60 apply to a deferred annuity payable
12.2under this section.
12.3(c) Unless otherwise specified, the annuity must be computed under section 354.44,
12.4subdivision 2 or 6, whichever is applicable.
12.5(d) Each designated beneficiary eligible for a lifetime benefit under this subdivision
12.6may apply for an annuity any time after the member's death. The benefit may not begin to
12.7accrue more than six months before the date the application is filed with the executive
12.8director and may not accrue before the member's death.
12.9EFFECTIVE DATE.This section is effective July 1, 2016.

12.10    Sec. 9. Minnesota Statutes 2014, section 354.48, subdivision 1, is amended to read:
12.11    Subdivision 1. Age, service and salary requirements. A member who is totally and
12.12permanently disabled, who has not reached the normal retirement age as defined in section
12.13354.05, subdivision 38, and who has at least three years of credited allowable service at the
12.14time that the total and permanent disability begins is entitled to a disability benefit based
12.15on this allowable service in an amount provided in subdivision 3. If the disabled member's
12.16teaching service has terminated at any time, at least two of the required three years of
12.17allowable service must have been rendered after last becoming a member. Any member
12.18whose average salary is less than $75 per month is not entitled to disability benefits.
12.19EFFECTIVE DATE.This section is effective July 1, 2016.

12.20    Sec. 10. Minnesota Statutes 2014, section 354.52, subdivision 4, is amended to read:
12.21    Subd. 4. Reporting and remittance requirements. An employer shall remit all
12.22amounts due to the association and furnish a statement indicating the amount due and
12.23transmitted with any other information required by the executive director. If an amount
12.24due is not received by the association within 14 calendar days of the payroll warrant,
12.25the amount accrues interest at an annual rate of 8.5 percent compounded annually from
12.26the due date until the amount is received by the association. All amounts due and other
12.27employer obligations not remitted within 60 days of notification by the association must
12.28may be certified to the commissioner of management and budget who shall deduct the
12.29amount from any state aid or appropriation amount applicable to the employing unit.
12.30EFFECTIVE DATE.This section is effective July 1, 2016.

12.31    Sec. 11. Minnesota Statutes 2014, section 354.52, subdivision 6, is amended to read:
13.1    Subd. 6. Noncompliance consequences. (a) An employing unit that does not
13.2comply with the reporting requirements under subdivision 2a, 4a, 4b, or 4d, clause (1),
13.3must pay a fine of $5 per calendar day until the association receives the required data.
13.4(b) If the annual base salary required to be reported under subdivision 4d has not
13.5been settled or determined as of June 16, the fine commences if the annual base salary has
13.6not been reported to the association within 14 days following the settlement date.
13.7EFFECTIVE DATE.This section is effective July 1, 2016.

13.8    Sec. 12. Minnesota Statutes 2014, section 423A.02, subdivision 3, is amended to read:
13.9    Subd. 3. Reallocation of amortization state aid. (a) Seventy percent of the
13.10difference between $5,720,000 and the current year amortization aid distributed under
13.11subdivision 1 that is not distributed for any reason to a municipality must be distributed
13.12by the commissioner of revenue according to this paragraph. The commissioner shall
13.13distribute 60 percent of the amounts derived under this paragraph to the Teachers
13.14Retirement Association, and 40 percent to the St. Paul Teachers Retirement Fund
13.15Association to fund the unfunded actuarial accrued liabilities of the respective funds.
13.16These payments must be made on July 15 each fiscal year. If the St. Paul Teachers
13.17Retirement Fund Association or the Duluth Teachers Retirement Fund Association
13.18becomes fully funded, the association's eligibility for its portion of this aid ceases.
13.19Amounts remaining in the undistributed balance account at the end of the biennium if aid
13.20eligibility ceases cancel to the general fund.
13.21    (b) In order to receive amortization aid under paragraph (a), before June 30 annually
13.22Independent School District No. 625, St. Paul, must make an additional contribution of
13.23$800,000 each year to the St. Paul Teachers Retirement Fund Association.
13.24    (c) Thirty percent of the difference between $5,720,000 and the current year
13.25amortization aid under subdivision 1 that is not distributed for any reason to a municipality
13.26must be distributed under section 69.021, subdivision 7, paragraph (d), as additional
13.27funding to support a minimum fire state aid amount for volunteer firefighter relief
13.28associations.
13.29EFFECTIVE DATE.This section is effective July 1, 2016.


13.33    Section 1. Minnesota Statutes 2015 Supplement, section 353.0162, is amended to read:
14.1353.0162 REDUCED SALARY PERIODS SALARY CREDIT PURCHASE
14.2FOR PERIODS OF REDUCED SALARY.
14.3(a) A member may purchase additional differential salary credit, as described in
14.4paragraph (c), for a period specified in this section paragraph (b).
14.5(b) The applicable period is a period during which the member is receiving a no or
14.6reduced salary from the employer while the member is:
14.7(1) receiving temporary workers' compensation payments related to the member's
14.8service to the public employer;
14.9(2) on an authorized leave of absence, except that if the authorized leave of absence
14.10exceeds 12 months, the period of leave for which differential salary credit may be
14.11purchased is limited to 12 months; or
14.12(3) on an authorized partial paid leave of absence as a result of a budgetary or salary
14.13savings program offered or mandated by a governmental subdivision, if certified to the
14.14executive director by the governmental subdivision.
14.15(c) The Differential salary amount credit is the difference between the average
14.16monthly salary received by the member during the a period of reduced salary under
14.17this section specified in paragraph (b) and the average monthly salary of the member,
14.18excluding overtime, on which contributions to the applicable plan were would have
14.19been made during the period of the last six months of covered employment occurring
14.20immediately before the period of reduced salary, applied to based on the member's normal
14.21employment period, measured in hours or otherwise, as applicable, and rate of pay.
14.22(d) To receive eligible differential salary credit, the member shall pay the plan, by
14.23delivering payment to the executive director, an amount equal to:
14.24(1) the applicable employee contribution rate under section 353.27, subdivision
14.252 ; 353.65, subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the
14.26differential salary amount;
14.27(2) plus an employer equivalent payment equal to the applicable employer
14.28contribution rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03,
14.29subdivision 2 , as applicable, multiplied by the differential salary amount;
14.30(3) plus, if applicable, an equivalent employer additional amount equal to the
14.31additional employer contribution rate in section 353.27, subdivision 3a, multiplied by the
14.32differential salary amount.
14.33(e) The employer, by appropriate action of its governing body and documented in its
14.34official records, may pay the employer equivalent contributions and, as applicable, the
14.35equivalent employer additional contributions on behalf of the member.
15.1(f) Payment under this section must include interest on the contribution amount or
15.2amounts, whichever applies, at an 8.5 percent annual rate until June 30, 2015, and at an
15.3eight percent annual rate thereafter, prorated for applicable months from the date on which
15.4the period of reduced salary specified under this section in paragraph (b) terminates to the
15.5date on which the payment or payments are received by the executive director. Payment
15.6under this section must be completed within by the earlier earliest of:
15.7(1) 30 days from after termination of public service by the employee under section
15.8353.01, subdivision 11a , or ;
15.9(2) one year after the termination of the period specified in paragraph (b), as further
15.10restricted under this section; or
15.11(3) 30 days after the commencement of a disability benefit.
15.12(g) The period for which additional allowable salary credit may be purchased is
15.13limited to the period during which the person receives temporary workers' compensation
15.14payments or for those business years in which the governmental subdivision offers or
15.15mandates a budget or salary savings program, as certified to the executive director by a
15.16resolution of the governing body of the governmental subdivision. For an authorized leave
15.17of absence, the period for which allowable salary credit may be purchased may not exceed
15.1812 months of authorized leave.
15.19(h) To purchase (g) If the member has purchased 12 months of differential salary
15.20credit for a subsequent period of temporary workers' compensation benefits or subsequent
15.21authorized medical leave of absence, the member must return to public service and render
15.22a minimum of three months of allowable service to purchase differential salary credit for
15.23a subsequent leave of absence.
15.24EFFECTIVE DATE.This section is effective July 1, 2016.

15.25    Sec. 2. Minnesota Statutes 2014, section 353.32, subdivision 1, is amended to read:
15.26    Subdivision 1. Before retirement. If a member or former member who terminated
15.27public service dies before retirement or before receiving any retirement annuity and no
15.28other payment of any kind is or may become payable to any person, a refund is payable to
15.29the designated beneficiary or, if there be none, to the surviving spouse, or, if none, to the
15.30legal representative of the decedent's estate. The refund must be in an amount equal to
15.31accumulated deductions, less the sum of any disability or survivor benefits that have been
15.32paid by the fund, plus annual compound interest thereon at the rate specified in section
15.33353.34, subdivision 2 , and less the sum of any disability or survivor benefits, if any, that
15.34may have been paid by the fund; provided that a survivor who has a right to benefits under
16.1section 353.31 may waive such benefits in writing, except such benefits for a dependent
16.2child under the age of 18 years may only be waived under an order of the district court.
16.3EFFECTIVE DATE.This section is effective July 1, 2016.

16.4    Sec. 3. Minnesota Statutes 2014, section 353.34, subdivision 2, is amended to read:
16.5    Subd. 2. Refund with interest. (a) Except as provided in subdivision 1, any person
16.6who ceases to be a public employee is entitled to receive a refund in an amount equal
16.7to accumulated deductions with, less the sum of any disability benefits that have been
16.8paid by the fund, plus annual compound interest to the first day of the month in which
16.9the refund is processed.
16.10(b) For a person who ceases to be a public employee before July 1, 2011, the refund
16.11interest is at the rate of six percent to June 30, 2011, and at the rate of four percent after
16.12June 30, 2011. For a person who ceases to be a public employee after July 1, 2011, the
16.13refund interest is at the rate of four percent.
16.14(c) If a person repays a refund and subsequently applies for another refund, the
16.15repayment amount, including interest, is added to the fiscal year balance in which the
16.16repayment was made.
16.17(d) If the refund payable to a member is based on employee deductions that are
16.18determined to be invalid under section 353.27, subdivision 7, the interest payable on the
16.19invalid employee deductions is four percent.
16.20EFFECTIVE DATE.This section is effective July 1, 2016.

16.21    Sec. 4. Minnesota Statutes 2015 Supplement, section 353.64, subdivision 10, is
16.22amended to read:
16.23    Subd. 10. Pension coverage for Hennepin Healthcare System, Inc.; paramedics
16.24and emergency medical technicians. An employee of Hennepin Healthcare System,
16.25Inc. is a member of the public employees police and fire retirement plan under sections
16.26353.63 to 353.68 if the person is:
16.27(1) certified as a paramedic or emergency medical technician by the state under
16.28section 144E.28, subdivision 4;
16.29(2) employed full time by Hennepin County as:
16.30(i) a paramedic or;
16.31(ii) an emergency medical technician by Hennepin County; or
16.32(iii) a supervisor or manager of paramedics or emergency medical technicians; and
17.1(3) not eligible for coverage under the agreement signed between the state and the
17.2secretary of the federal Department of Health and Human Services making the provisions
17.3of the federal Old Age, Survivors, and Disability Insurance Act applicable to paramedics
17.4and emergency medical technicians because the person's position is excluded after that
17.5date from application under United States Code, title 42, sections 418(d)(5)(A) and
17.6418(d)(8)(D), and section 355.07.
17.7Hennepin Healthcare System, Inc. shall deduct the employee contribution from
17.8the salary of each full-time paramedic and emergency medical technician it employs as
17.9required by section 353.65, subdivision 2, shall make the employer contribution for each
17.10full-time paramedic and emergency medical technician it employs as required by section
17.11353.65, subdivision 3 , and shall meet the employer recording and reporting requirements
17.12in section 353.65, subdivision 4.
17.13EFFECTIVE DATE.This section is effective July 1, 2016.

17.14    Sec. 5. REPEALER.
17.15(a) Minnesota Statutes 2014, section 353.0161, subdivision 1, is repealed.
17.16(b) Minnesota Statutes 2015 Supplement, section 353.0161, subdivisions 2 and
17.173, are repealed.
17.18EFFECTIVE DATE.This section is effective July 1, 2016.


17.22    Section 1. Minnesota Statutes 2014, section 354A.093, subdivision 4, is amended to
17.23read:
17.24    Subd. 4. Eligible payment period. (a) To receive service credit under this section,
17.25the contributions specified in this section must be transmitted to the applicable first class
17.26city St. Paul Teachers Retirement Fund Association during the period which begins with
17.27the date the individual returns to teaching service and which has a duration of three times
17.28the length of the uniformed service period, but not to exceed five years.
17.29(b) Notwithstanding paragraph (a), if the payment period determined under
17.30paragraph (a) is less than one year, the contributions required under this section to receive
17.31service credit may be made within one year from the discharge date.
17.32EFFECTIVE DATE.This section is effective July 1, 2016.

18.1    Sec. 2. Minnesota Statutes 2015 Supplement, section 354A.093, subdivision 6, is
18.2amended to read:
18.3    Subd. 6. Interest requirements. The employer shall pay interest on all equivalent
18.4employee and employer contribution amounts payable under this section. Interest must
18.5be computed at the rate of 8.5 percent until June 30, 2015, and eight percent thereafter
18.6compounded annually from the end of each fiscal year of the leave or break in service to the
18.7end of the month in which payment is received at the annual compound rate of 8.5 percent
18.8for any period, or portion thereof, through June 30, 2015, and eight percent thereafter.
18.9EFFECTIVE DATE.This section is effective July 1, 2016.

18.10    Sec. 3. Minnesota Statutes 2015 Supplement, section 354A.096, is amended to read:
18.11354A.096 MEDICAL LEAVE.
18.12Any teacher in the coordinated program of the St. Paul Teachers Retirement Fund
18.13Association who is on an authorized medical leave of absence and subsequently returns to
18.14teaching service is entitled to receive allowable service credit, not to exceed one year, for
18.15the period of leave, upon making the prescribed payment to the fund. This payment must
18.16include the required employee and employer contributions at the rates specified in section
18.17354A.12 , subdivisions 1 and 2a, as applied to the member's average full-time monthly
18.18salary rate on the date the leave of absence commenced plus annual interest compounded
18.19annually from the end of the fiscal year during which the leave terminates to the end of
18.20the month during which payment is made at the rate of 8.5 percent until for any period,
18.21or portion thereof, through June 30, 2015, and eight percent thereafter per year from the
18.22end of the fiscal year during which the leave terminates to the end of the month during
18.23which payment is made. The member must pay the total amount required unless the
18.24employing unit, at its option, pays the employer contributions. The total amount required
18.25must be paid by the end of the fiscal year following the fiscal year in which the leave of
18.26absence terminated or before the member retires, whichever is earlier. Payment must be
18.27accompanied by a copy of the resolution or action of the employing authority granting the
18.28leave and the employing authority, upon granting the leave, must certify the leave to the
18.29association in a manner specified by the executive director. A member may not receive
18.30more than one year of allowable service credit during any fiscal year by making payment
18.31under this section. A member may not receive disability benefits under section 354A.36
18.32and receive allowable service credit under this section for the same period of time.
18.33EFFECTIVE DATE.This section is effective July 1, 2016.

19.1    Sec. 4. Minnesota Statutes 2014, section 354A.38, as amended by Laws 2015, chapter
19.268, article 2, section 15, is amended to read:
19.3354A.38 EFFECT OF REFUND; REPAYMENT OF REFUND.
19.4    Subdivision 1. Effect of refund; termination of service credit. If a coordinated
19.5member or former coordinated member applies for and accepts is issued a refund pursuant
19.6to section 354A.37, all allowable service which was credited to the member or former
19.7member shall be terminated.
19.8    Subd. 2. Repayment of refund. A coordinated member with at least two years of
19.9allowable service credited subsequent to the member's last application for and acceptance
19.10payment of a refund pursuant to section 354A.37 shall be entitled to repay the refund. The
19.11amount of the refund repayment shall be calculated pursuant to subdivision 3. If the
19.12member has previously applied for and accepted taken more than one refund, and the
19.13previous refund or all refunds have not been must be repaid pro rata, then the member
19.14shall be entitled only to repay all outstanding refunds and shall not be entitled to repay
19.15only the most recent refund.
19.16    Subd. 3. Computation of refund repayment amount. If the coordinated member
19.17elects to repay a refund under subdivision 2, the repayment to the fund must be in an
19.18amount equal to the refunds the member has accepted been issued plus interest at the rate
19.19of 8.5 percent until June 30, 2015, and eight percent thereafter compounded annually
19.20from the date that the refund was accepted issued to the date that the refund is repaid at a
19.21rate of 8.5 percent for any period, or portion thereof, through June 30, 2015, and eight
19.22percent thereafter.
19.23EFFECTIVE DATE.This section is effective July 1, 2016.


19.26    Section 1. Minnesota Statutes 2014, section 356.30, subdivision 1, is amended to read:
19.27    Subdivision 1. Eligibility; computation of annuity. (a) Notwithstanding any
19.28provisions of the laws governing the retirement plans enumerated in subdivision 3, a
19.29person who has met the qualifications of paragraph (b) may elect to receive:
19.30(1) a retirement annuity from each enumerated retirement plan in which the person
19.31has at least one-half year of allowable service, based on the allowable service in each plan,
19.32and subject to the provisions of paragraph (c).; and
19.33(2) augmentation of a deferred annuity calculated at the appropriate rate under the
19.34laws governing the applicable enumerated retirement plan.
20.1(b) A person may receive, upon retirement, a retirement annuity from each
20.2enumerated retirement plan in which the person has at least one-half year of allowable
20.3service annuities as described in paragraph (a), clause (1), and augmentation of a any
20.4deferred annuity calculated at the appropriate rate under the laws governing each public
20.5pension plan or fund named in subdivision 3, based on the date of the person's initial
20.6entry into public employment from the date the person terminated all public service as
20.7described in paragraph (a), clause (2), if:
20.8(1) the person has allowable service in any two or more of the enumerated plans;
20.9(2) the person has sufficient allowable service in total that equals or exceeds the
20.10applicable service credit vesting requirement of the retirement plan with the longest
20.11applicable service credit vesting requirement; and
20.12(3) the person has not begun to receive an annuity from any enumerated plan or the
20.13person has made application for benefits from each applicable plan before terminating all
20.14public service; and
20.15(4) the effective dates of the retirement annuity with each plan under which the
20.16person chooses to receive an annuity are within a one-year period.
20.17(c) The retirement annuity from each plan must be based upon the allowable service,
20.18accrual rates, and average salary in the applicable plan except as further specified or
20.19modified in the following clauses:
20.20(1) the laws governing annuities must be the law in effect on the date of termination
20.21from the last period of public service under a covered retirement plan with which the person
20.22earned a minimum of one-half year of allowable service credit during that employment;
20.23(2) the "average salary" on which the annuity from each covered plan in which
20.24the employee has credit in a formula plan must be based on the employee's highest five
20.25successive years of covered salary during the entire service in covered plans;
20.26(3) the accrual rates to be used by each plan must be those percentages prescribed by
20.27each plan's formula as continued for the respective years of allowable service from one
20.28plan to the next, recognizing all previous allowable service with the other covered plans;
20.29(4) the allowable service in all the plans must be combined in determining eligibility
20.30for and the application of each plan's provisions in respect to reduction in the annuity
20.31amount for retirement prior to normal retirement age; and
20.32(5) the annuity amount payable for any allowable service under a nonformula plan
20.33of a covered plan must not be affected, but such service and covered salary must be used
20.34in the above calculation.
20.35(d) This section does not apply to any person whose final termination from the last
20.36public service under a covered plan was before May 1, 1975.
21.1(e) For the purpose of computing annuities under this section, the accrual rates
21.2used by any covered plan, except the public employees police and fire plan, the judges
21.3retirement fund, and the State Patrol retirement plan, must not exceed 2.7 percent per year
21.4of service for any year of service or fraction thereof. The formula percentage used by the
21.5judges retirement fund must not exceed 3.2 percent per year of service for any year of
21.6service or fraction thereof. The accrual rate used by the public employees police and fire
21.7plan and the State Patrol retirement plan must not exceed 3.0 percent per year of service
21.8for any year of service or fraction thereof. The accrual rate or rates used by the legislators
21.9retirement plan must not exceed 2.5 percent, but this limit does not apply to the adjustment
21.10provided under section 3A.02, subdivision 1, paragraph (c).
21.11(f) Any period of time for which a person has credit in more than one of the covered
21.12plans must be used only once for the purpose of determining total allowable service.
21.13(g) If the period of duplicated service credit is more than one-half year, or the person
21.14has credit for more than one-half year, with each of the plans, each plan must apply its
21.15formula to a prorated service credit for the period of duplicated service based on a fraction
21.16of the salary on which deductions were paid to that fund for the period divided by the total
21.17salary on which deductions were paid to all plans for the period.
21.18(h) If the period of duplicated service credit is less than one-half year, or when
21.19added to other service credit with that plan is less than one-half year, the service credit
21.20must be ignored and a refund of contributions made to the person in accord with that
21.21plan's refund provisions.
21.22EFFECTIVE DATE.This section is effective July 1, 2016.

21.23    Sec. 2. Minnesota Statutes 2015 Supplement, section 356.50, subdivision 2, is
21.24amended to read:
21.25    Subd. 2. Service credit procedure. (a) To obtain the public pension plan
21.26allowable service credit, the eligible person under subdivision 1 shall pay the required
21.27member contribution amount. The required member contribution amount is the member
21.28contribution rate or rates in effect for the pension plan during the period of service covered
21.29by the back pay award, applied to the unpaid gross salary amounts of the back pay award
21.30including unemployment insurance, workers' compensation, or wages from other sources
21.31which reduced the back award. No contributions may be made under this clause for
21.32compensation covered by a public pension plan listed in section 356.30, subdivision 3,
21.33for employment during the removal period. The person shall pay the required member
21.34contribution amount within 60 days of the date of receipt of the back pay award or within
21.3560 days of a billing from the retirement fund, whichever is later.
22.1(b) The public employer who wrongfully discharged the public employee must pay
22.2an employer contribution on the back pay award. The employer contribution must be
22.3based on the employer contribution rate or rates in effect for the pension plan during the
22.4period of service covered by the back pay award, applied to the salary amount on which
22.5the member contribution amount was determined under paragraph (a). The employer must
22.6pay the interest on both the required member and employer contribution amount must be
22.7paid by the employer amounts from the date the contribution amount would have been paid
22.8to the date of actual payment at the annual compound rate of 8.5 percent for any period
22.9for the Teachers Retirement Association and 8.5 percent until for any period, or portion
22.10thereof, through June 30, 2015, and eight percent thereafter, for any other retirement plan
22.11listed in section 356.30, subdivision 3, per year, expressed monthly, between the date the
22.12contribution amount would have been paid to the date of actual payment. The employer
22.13payment must be made within 30 days of the payment under paragraph (a).
22.14EFFECTIVE DATE.This section is effective July 1, 2016.

22.15    Sec. 3. Minnesota Statutes 2015 Supplement, section 356.551, subdivision 2, is
22.16amended to read:
22.17    Subd. 2. Determination. (a) Unless the minimum purchase amount set forth in
22.18paragraph (c) applies, the prior service credit purchase amount is an amount equal to the
22.19actuarial present value, on the date of payment, as calculated by the chief administrative
22.20officer of the pension plan and reviewed by the actuary retained under section 356.214,
22.21of the amount of the additional retirement annuity obtained by the acquisition of the
22.22additional service credit in this section.
22.23    (b) Calculation of this amount must be made using the preretirement interest rate
22.24applicable to the public pension plan specified in section 356.215, subdivision 8, and
22.25the mortality table adopted for the public pension plan. The calculation must assume
22.26continuous future service in the public pension plan until, and retirement at, the age at
22.27which the minimum requirements of the fund for normal retirement or retirement with an
22.28annuity unreduced for retirement at an early age, including section 356.30, are met with
22.29the additional service credit purchased. The calculation must also assume a full-time
22.30equivalent salary, or actual salary, whichever is greater, and a future salary history that
22.31includes annual salary increases at the applicable salary increase rate for the plan specified
22.32in section 356.215, subdivision 4d 8.
22.33    (c) The prior service credit purchase amount may not be less than the amount
22.34determined by applying, for each year or fraction of a year being purchased, the sum of the
22.35employee contribution rate, the employer contribution rate, and the additional employer
23.1contribution rate, if any, applicable during that period, to the person's annual salary during
23.2that period, or fractional portion of a year's salary, if applicable, plus interest at the annual
23.3rate of 8.5 percent until June 30, 2015, and eight percent thereafter compounded annually
23.4from the end of the year in which contributions would otherwise have been made to
23.5the date on which the payment is received at the rate of 8.5 percent for any period for
23.6the Teachers Retirement Association and 8.5 percent for any period, or portion thereof,
23.7through June 30, 2015, and eight percent thereafter, for any other retirement plan listed
23.8in section 356.30, subdivision 3.
23.9    (d) Unless otherwise provided by statutes governing a specific plan, payment must
23.10be made in one lump sum within one year of the prior service credit authorization or prior
23.11to the member's effective date of retirement, whichever is earlier. Payment of the amount
23.12calculated under this section must be made by the applicable eligible person.
23.13    (e) However, the current employer or the prior employer may, at its discretion, pay
23.14all or any portion of the payment amount that exceeds an amount equal to the employee
23.15contribution rates in effect during the period or periods of prior service applied to the
23.16actual salary rates in effect during the period or periods of prior service, plus interest at the
23.17rate of 8.5 percent a year compounded annually from the date on which the contributions
23.18would otherwise have been made to the date on which the payment is made at the rate of
23.198.5 percent for any period for the Teachers Retirement Association and 8.5 percent for any
23.20period, or portion thereof, through June 30, 2015, and eight percent thereafter, for any other
23.21retirement plan listed in section 356.30, subdivision 3. If the employer agrees to payments
23.22under this subdivision, the purchaser must make the employee payments required under
23.23this subdivision within 90 days of the prior service credit authorization. If that employee
23.24payment is made, the employer payment under this subdivision must be remitted to the
23.25chief administrative officer of the public pension plan within 60 days of receipt by the
23.26chief administrative officer of the employee payments specified under this subdivision.
23.27EFFECTIVE DATE.This section is effective July 1, 2016.

23.28    Sec. 4. Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision
23.29to read:
23.30    Subd. 9a. Definitions. (a) The following definitions apply for purposes of this
23.31subdivision and subdivisions 10 to 12.
23.32(b) "Annual addition" means the sum for the limitation year of all pretax and after-tax
23.33contributions made by the member or the member's employer and credited to an account
23.34in the name of the member in any defined contribution plan maintained by the employer.
24.1(c) "Compensation" means the compensation actually paid or made available to
24.2a member for any limitation year, including all items of remuneration described in
24.3Code of Federal Regulations, title 26, section 1.415(c)-2(b), and excluding all items of
24.4remuneration described in Code of Federal Regulations, title 26, section 1.415(c)-2(c).
24.5Compensation for pension plan purposes for any limitation year shall not exceed the
24.6applicable federal compensation limit described in section 356.611, subdivision 2.
24.7(d) "Limitation year" means the calendar year or fiscal year, whichever is applicable
24.8to the particular pension plan.
24.9(e) "Maximum permissible benefit" means an annual benefit of $160,000,
24.10automatically adjusted under section 415(d) of the Internal Revenue Code for each
24.11limitation year ending after December 31, 2001, payable in the form of a single life
24.12annuity. The new limitation shall apply to limitation years ending with or within the
24.13calendar year of the date of the adjustment, but a member's benefits shall not reflect the
24.14adjusted limit prior to January 1 of that calendar year. The maximum permissible benefit
24.15amount shall be further adjusted as follows:
24.16(1) if the member has less than ten years of participation, the maximum permissible
24.17benefit shall be multiplied by a fraction, the numerator of which is the number of years (or
24.18part thereof, but not less than one year) of participation in the plan, and the denominator of
24.19which is ten;
24.20(2) if the annual benefit begins before the member has attained age 62, the
24.21determination as to whether the maximum permissible benefit limit has been satisfied shall
24.22be made, in accordance with regulations prescribed by the United States secretary of the
24.23treasury, by reducing the limit so that the limit, as so reduced, equals an annual benefit,
24.24beginning when the annual benefit actually begins, which is equivalent to a $160,000, as
24.25adjusted, annual benefit beginning at age 62; and
24.26(3) if the annual benefit begins after the member has attained age 65, the
24.27determination as to whether the maximum permissible benefit limit has been satisfied shall
24.28be made, in accordance with regulations prescribed by the United States secretary of the
24.29treasury, by increasing the limit so that the limit, as so increased, equals an annual benefit,
24.30beginning when the annual benefit actually begins, which is equivalent to a $160,000, as
24.31adjusted, annual benefit beginning at age 65.
24.32EFFECTIVE DATE.This section is effective July 1, 2016.

24.33    Sec. 5. Minnesota Statutes 2015 Supplement, section 356.635, subdivision 10, is
24.34amended to read:
25.1    Subd. 10. Annual benefit limitations; defined benefit plans. (a) The annual benefit
25.2payable to a member shall not exceed the maximum permissible benefit. If the benefit the
25.3member would otherwise receive for a limitation year would result in the payment of an
25.4annual benefit in excess of the maximum permissible benefit, the benefit shall be reduced
25.5to the extent necessary so the benefit does not exceed the maximum permissible benefit.
25.6(b) For purposes of applying the limits of section 415(b) of the Internal Revenue
25.7Code, a retirement limitation in paragraph (a), an annual benefit that is payable in any
25.8form other than a single life annuity and that is subject to section 417(e)(3) of the Internal
25.9Revenue Code must shall be adjusted to an actuarially equivalent single life annuity
25.10that equals, if the annuity starting date is in a plan year beginning after 2005, the annual
25.11amount of the single life annuity commencing at the same annuity starting date that has
25.12the same actuarial present value as the participant's member's form of benefit, using
25.13whichever of the following produces the greatest annual amount:
25.14(1) the interest rate and the mortality table or other tabular factor specified in the
25.15plan for adjusting benefits in the same form;
25.16(2) a 5.5 percent interest rate assumption and the applicable mortality table; or
25.17(3) the applicable interest rate under section 417(e)(3) of the Internal Revenue Code
25.18and the applicable mortality table, divided by 1.05.
25.19(c) If a member participated in more than one pension plan in which the employer
25.20participates, the benefits under each plan must be reduced proportionately to satisfy the
25.21limitation in paragraph (a).
25.22EFFECTIVE DATE.This section is effective July 1, 2016.

25.23    Sec. 6. Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision
25.24to read:
25.25    Subd. 11. Annual addition limitation; defined contribution plans. The annual
25.26additions by or on behalf of a member to a defined contribution plan for any limitation
25.27year shall not exceed the lesser of (1) 100 percent of the member's compensation for
25.28the limitation year or (2) the dollar limit in effect for the limitation year under section
25.29415(c)(1)(A) of the Internal Revenue Code, as adjusted by the United States secretary of
25.30the treasury under section 415(d)(1)(C) of the Internal Revenue Code.
25.31EFFECTIVE DATE.This section is effective July 1, 2016.

25.32    Sec. 7. Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision
25.33to read:
26.1    Subd. 12. Incorporation by reference. Any requirements of section 415(b) and (c)
26.2of the Internal Revenue Code and related regulations and agency guidance not addressed
26.3by subdivisions 10 and 11 shall be considered incorporated by reference, including
26.4provisions applicable to qualified police and firefighters and to survivor and disability
26.5benefits. Subdivisions 10 to 12 shall be interpreted in a manner that is consistent with the
26.6requirements of section 415(b) and (c) of the Internal Revenue Code and the related
26.7regulations.
26.8EFFECTIVE DATE.This section is effective July 1, 2016.

26.9    Sec. 8. Minnesota Statutes 2014, section 356.635, is amended by adding a subdivision
26.10to read:
26.11    Subd. 13. Correction of errors. The executive director of each plan may correct an
26.12operational, demographic, employer eligibility, or plan document error as the executive
26.13director deems necessary or appropriate to preserve and protect the plan's tax qualification
26.14under section 401(a) of the Internal Revenue Code, including as provided in the Internal
26.15Revenue Service's Employee Plans Compliance Resolution System (EPCRS) or any
26.16successor thereto. To the extent deemed necessary by the executive director to implement
26.17correction, the executive director may:
26.18(1) make distributions;
26.19(2) transfer assets; or
26.20(3) recover an overpayment by reducing future benefit payments or designating
26.21appropriate revenue or source of funding that will restore to the plan the amount of the
26.22overpayment.
26.23EFFECTIVE DATE.This section is effective July 1, 2016.

26.24    Sec. 9. Minnesota Statutes 2014, section 356.96, subdivision 1, is amended to read:
26.25    Subdivision 1. Definitions. (a) Unless the language or context clearly indicates that
26.26a different meaning is intended, for the purpose of this section, the terms in paragraphs
26.27(b) to (e) this subdivision have the meanings given them.
26.28    (b) "Chief administrative officer" "Executive director" means the executive director
26.29of a covered pension plan or the executive director's designee or representative.
26.30    (c) "Covered pension plan" means a plan enumerated in section 356.20, subdivision
26.312 , clauses (1) to (4), (8), and (11) to (14), but does not mean the deferred compensation
26.32plan administered under sections 352.965 and 352.97 or to the postretirement health care
26.33savings plan administered under section 352.98.
27.1    (d) "Governing board" means the Board of Trustees of the Public Employees
27.2Retirement Association, the Board of Trustees of the Teachers Retirement Association, or
27.3the Board of Directors of the Minnesota State Retirement System.
27.4    (e) "Person" includes means an active, retired, deferred, or nonvested inactive
27.5participant in a covered pension plan or a beneficiary of a participant, or an individual
27.6who has applied to be a participant or who is or may be a survivor of a participant,
27.7or the representative of a state agency or other governmental unit that employs active
27.8participants in a covered pension plan.
27.9(f) "Petitioner" means a person who has filed a petition for review of an executive
27.10director's determination under this section.
27.11EFFECTIVE DATE.This section is effective July 1, 2016.

27.12    Sec. 10. Minnesota Statutes 2014, section 356.96, subdivision 2, is amended to read:
27.13    Subd. 2. Right to review appeal to executive director; determination. A
27.14determination made by the chief administrative officer person may appeal a decision by
27.15the staff of a covered pension plan regarding a the person's eligibility, benefits, or other
27.16rights under the plan with which the person does not agree to the executive director of
27.17the plan. The appeal must be in writing and be delivered to the executive director. The
27.18executive director may overturn, modify, or affirm the staff's decision. The executive
27.19director's determination is subject to review under this section.
27.20EFFECTIVE DATE.This section is effective July 1, 2016.

27.21    Sec. 11. Minnesota Statutes 2014, section 356.96, subdivision 3, is amended to read:
27.22    Subd. 3. Notice of determination. If the applicable chief administrative officer
27.23denies an application or a written request, modifies a benefit, or terminates a benefit
27.24of a person claiming a right or potential rights under a covered pension plan, the chief
27.25administrative officer shall notify that person through a written notice containing: The
27.26executive director shall issue a written notice of determination to the person who files an
27.27appeal under subdivision 2. The notice of determination must be delivered by certified
27.28mail to the address to which the most recent benefit payment was sent or, if that address
27.29is that of a financial institution, to the last known address of the person. The notice of
27.30determination shall include the following:
27.31    (1) a statement of the reasons for the determination;
27.32    (2) a notice statement that the person may petition the governing board of the
27.33covered pension plan for a review of the determination and that a person's petition for
28.1review must be filed in the administrative office of the covered pension plan within no
28.2later than 60 days of the receipt after the date of the written notice of the determination;
28.3    (3) a statement indicating that a failure to petition for review within 60 days
28.4precludes the person from contesting in any other further administrative or judicial
28.5review or court procedure the issues determined by the chief administrative officer of the
28.6executive director's determination;
28.7    (4) a statement indicating that all relevant materials, documents, affidavits, and
28.8other records that the person wishes to be reviewed in support of the petition and a list
28.9of any witnesses who will testify before the governing board, along with a summary of
28.10their testimony, must be filed with and received in the administrative office of the covered
28.11pension plan at least 15 days before the date of the hearing under subdivision 10 or as
28.12directed by the administrative law judge who conducts a fact-finding conference under
28.13subdivision 7, paragraph (b), or a contested case hearing under subdivision 12, paragraph
28.14(b); and
28.15    (5) a summary of this section, including all filing requirements and deadlines.; and
28.16(6) the statement required under subdivision 4, paragraph (a), if applicable.
28.17EFFECTIVE DATE.This section is effective July 1, 2016.

28.18    Sec. 12. Minnesota Statutes 2014, section 356.96, subdivision 4, is amended to read:
28.19    Subd. 4. Termination of benefits. (a) If a covered pension plan decides to the
28.20executive director's determination will terminate a benefit that is being paid to a person,
28.21before terminating the benefit, the chief administrative officer must, in addition to the
28.22other procedures prescribed in this section, provide the individual with written notice of
28.23the pending benefit termination by certified mail. The notice must explain the reason for
28.24the pending benefit termination. The person must be given an the notice of determination
28.25must also state that the person has the opportunity to explain, in writing, in person, by
28.26telephone, or by e-mail, the reasons that the benefit should not be terminated.
28.27    (b) If the chief administrative officer is unable to contact the person and notice of
28.28determination is returned as undeliverable, and the person cannot be reached by any other
28.29reasonable means of communication, and the executive director determines that a failure
28.30to terminate the benefit will result in unauthorized payment by a covered pension plan,
28.31the chief administrative officer executive director may terminate the benefit immediately
28.32upon mailing a written notice containing the information required by subdivision 3 to the
28.33address to which the most recent benefit payment was sent and, if that address is that of a
28.34financial institution, to the last known address of the person.
29.1EFFECTIVE DATE.This section is effective July 1, 2016.

29.2    Sec. 13. Minnesota Statutes 2014, section 356.96, subdivision 5, is amended to read:
29.3    Subd. 5. Petition for review. (a) Upon receipt of the notice of determination
29.4required in subdivision 3, a person who claims a right under subdivision 2 may petition
29.5the governing board of the covered pension plan for a review of that decision by the
29.6governing board of the covered pension plan the executive director's determination.
29.7    (b) A petition under this section must be sent to the chief administrative officer
29.8by mail and must be postmarked The petitioner must file the petition for review with
29.9the administrative office of the covered pension plan no later than 60 days after the
29.10person received date of the notice of determination required by subdivision 3. Filing of
29.11the petition is effective upon mailing or personal delivery. The petition must include
29.12the person's petitioner's statement of the reason or reasons that the person believes the
29.13decision of the chief administrative officer determination of the executive director
29.14should be reversed or modified. The petition may include all documentation and written
29.15materials that the petitioner deems to be relevant. In developing a record for review by
29.16the board when a decision is appealed, the chief administrative officer may direct that the
29.17applicant participate in a fact-finding session conducted by an administrative law judge
29.18assigned by the Office of Administrative Hearings and, as applicable, participate in a
29.19vocational assessment conducted by a qualified rehabilitation counselor on contract with
29.20the applicable retirement system.
29.21EFFECTIVE DATE.This section is effective July 1, 2016.

29.22    Sec. 14. Minnesota Statutes 2014, section 356.96, subdivision 6, is amended to read:
29.23    Subd. 6. Failure to petition. If a timely petition for review under subdivision 5 is
29.24not filed with the chief administrative officer, office of the covered pension plan's plan,
29.25the executive director's determination is final and is not subject to further administrative
29.26or judicial review.
29.27EFFECTIVE DATE.This section is effective July 1, 2016.

29.28    Sec. 15. Minnesota Statutes 2014, section 356.96, subdivision 7, is amended to read:
29.29    Subd. 7. Notice of hearing; fact-finding; filing and timing requirements. (a)
29.30After receiving a petition, the chief administrative officer executive director must schedule
29.31a timely hearing to review of the petition before the governing board of the covered
29.32pension plan or the executive director may defer the scheduling of a hearing until after
30.1a fact-finding conference under paragraph (b). The review must be scheduled to take
30.2into consideration any necessary accommodations to allow the petitioner to participate
30.3in the governing board's review.
30.4    (b) The executive director may direct the petitioner to participate in a fact-finding
30.5conference conducted by an administrative law judge assigned by the Office of
30.6Administrative Hearings. The fact-finding conference is an informal proceeding not
30.7subject to the provisions of Minnesota Rules, chapter 1400, except that part 1400.7300
30.8shall govern the admissibility of evidence and part 1400.8603 shall govern how the
30.9fact-finding conference is conducted. The administrative law judge must issue a report
30.10and a recommendation to the governing board.
30.11    (c) If the petitioner's claim relates to disability benefits, the executive director may
30.12direct the petitioner to participate in a vocational assessment conducted by a qualified
30.13rehabilitation counselor under contract with the covered pension plan. The counselor must
30.14issue a report regarding the assessment to the governing board.
30.15    (b) (d) Not less than 30 calendar days before the date scheduled for the hearing
30.16date before the governing board, the chief administrative officer executive director must
30.17provide by mail to notify the petitioner an acknowledgment of the receipt of the person's
30.18petition and a follow-up notice of the time and place of the meeting at which the governing
30.19board is scheduled to consider the petition and conduct the hearing. If there has been
30.20no fact-finding conference under paragraph (b), not less than 15 days before the date
30.21scheduled for the hearing, the petitioner and the executive director must provide a copy to
30.22the governing board and the other party copies of all relevant documents, documentary
30.23evidence, summaries, and recommendations assembled by or on behalf of the plan
30.24administration to be considered by the governing board that will be presented and a list of
30.25witnesses who will testify, along with a summary of their testimony.
30.26    (c) all documents and materials that the petitioner wishes to be part of the record
30.27for review must be filed with the chief administrative officer and must be received in the
30.28offices of the covered pension plan at least 15 days before the date of the meeting at
30.29which the petition is scheduled to be heard.
30.30    (d) A (e) The petitioner may request a continuance postponement of a the date
30.31scheduled for the hearing if the request is received by the chief administrative officer within
30.32before the governing board within a reasonable time, but no later than ten calendar days of
30.33before the scheduled hearing date of the applicable board meeting. The chief administrative
30.34officer must reschedule the review within a reasonable time. only one continuance may be
30.35granted to any petitioner. A petitioner shall be granted only one postponement unless the
30.36applicable covered pension plan agrees to additional postponements.
31.1EFFECTIVE DATE.This section is effective July 1, 2016.

31.2    Sec. 16. Minnesota Statutes 2014, section 356.96, subdivision 8, is amended to read:
31.3    Subd. 8. Record for review. (a) All evidence, including all records, documents, and
31.4affidavits in the possession of the covered pension plan of which the covered pension plan
31.5desires to avail itself and be considered by the governing board, and all evidence which the
31.6petitioner wishes to present to the governing board, including any evidence which would
31.7otherwise be classified by law as "private," must be made part of the hearing record.
31.8    (b) The chief administrative officer executive director must provide a copy of
31.9the record to each member of the governing board at least seven five days before the
31.10scheduled hearing date.
31.11    (c) Any additional document, affidavit, or other relevant information that the
31.12petitioner requests be part of the record may be admitted with the consent of the governing
31.13board. If a fact-finding conference under subdivision 7, paragraph (b), is not conducted,
31.14the record is limited to those materials provided to the petitioner in accordance with
31.15subdivision 7, paragraph (d), those filed by the petitioner with the covered pension plan
31.16in a timely manner in accordance with subdivision 7, paragraph (e), any vocational
31.17assessment report under subdivision 7, paragraph (c), and any testimony at the hearing
31.18before the governing board. Any additional evidence may be placed in the record pursuant
31.19to subdivision 10, paragraph (b).
31.20(d) If a fact-finding conference under subdivision 7, paragraph (b), or a contested
31.21case hearing under subdivision 12, paragraph (b), is conducted, the record before the
31.22governing board must be limited to the following:
31.23(1) the record from the Office of Administrative Hearings;
31.24(2) seven-page submissions by the petitioner and a representative of the covered
31.25pension plan commenting on the administrative law judge's recommendation; and
31.26(3) any vocational assessment report under subdivision 7, paragraph (c).
31.27EFFECTIVE DATE.This section is effective July 1, 2016.

31.28    Sec. 17. Minnesota Statutes 2014, section 356.96, subdivision 9, is amended to read:
31.29    Subd. 9. Amended determination. At any time before the hearing before the
31.30governing board, for good cause shown and made part of the records of the plan, the chief
31.31administrative officer executive director may reverse, alter, amend, or modify the prior
31.32decision which is subject to review under this section by issuing an amended decision
31.33determination to the petitioner. Upon doing so, the chief administrative officer executive
32.1director may cancel the governing board's scheduled review of the person's petition and
32.2shall so notify the petitioner.
32.3EFFECTIVE DATE.This section is effective July 1, 2016.

32.4    Sec. 18. Minnesota Statutes 2014, section 356.96, subdivision 10, is amended to read:
32.5    Subd. 10. Board hearing. (a) The governing board shall hold a timely hearing
32.6on a petition for review as part of a regularly scheduled board meeting, or as part of
32.7a special meeting if so scheduled. All governing board members who participate in the
32.8decision-making process must be familiar with the record. The governing board shall
32.9make its decision on a petition solely on the record as submitted and on the proceedings
32.10of the hearing.
32.11    (b) At the hearing, the petitioner, the petitioner's attorney representative, if any, and
32.12the chief administrative officer executive director and a representative of the covered
32.13pension plan who does not also serve as the governing board's legal advisor during the
32.14board's decision-making process, may state and discuss with the governing board their
32.15positions with respect to the petition. If no fact-finding conference under subdivision
32.167, paragraph (b), or contested case hearing under subdivision 12, paragraph (b), was
32.17conducted, additional evidence may be received in the form of testimony from previously
32.18disclosed witnesses. The governing board may allow further documentation to be placed
32.19in the record at the board meeting only with the agreement of both the chief administrative
32.20officer executive director and the petitioner. The chief administrative officer executive
32.21director may not otherwise participate in the board's decision-making process.
32.22    (b) When a petition presents a contested issue of law, an assistant attorney general
32.23may participate and may argue on behalf of the legal position taken by the chief
32.24administrative officer if that assistant attorney general does not also serve as the governing
32.25board's legal advisor during the board's decision-making process.
32.26    (c) A motion by a board member, supported by a summary of the relevant facts,
32.27conclusions and reasons, as properly amended and approved by a majority of the
32.28governing board, constitutes the board's final decision. A verbatim statement of the
32.29board's final decision must be served upon the petitioner. If the decision is contrary to the
32.30petitioner's desired outcome, the notice shall inform the petitioner of the appeal rights set
32.31forth in subdivision 13.
32.32    (d) (c) If a petitioner who received timely notice of a scheduled hearing fails to
32.33appear, the governing board may nevertheless hear the petition and issue a decision.
32.34(d) The governing board's decision shall be made upon a motion by a board member
32.35and approval by a majority of the governing board. The governing board must issue
33.1its decision as a written order containing findings of fact, conclusions of law, and the
33.2board's decision no later than 30 days after the hearing. If the decision is contrary to the
33.3petitioner's desired outcome, the notice must inform the petitioner of the appeal rights set
33.4forth in subdivision 13.
33.5EFFECTIVE DATE.This section is effective July 1, 2016.

33.6    Sec. 19. Minnesota Statutes 2014, section 356.96, subdivision 11, is amended to read:
33.7    Subd. 11. Disability medical issues. (a) If a person petitions the governing board
33.8the petitioner seeks to reverse or modify a determination which found by the executive
33.9director that there exists no was insufficient medical data supporting to support an
33.10application for disability benefits, the governing board may reverse that determination
33.11only if there is in fact medical evidence supporting the application. The governing board
33.12has the discretion to resubmit a disability benefit application at any time to a medical
33.13advisor for reconsideration, and the resubmission may include an instruction that further
33.14medical examinations be obtained.
33.15    (b) The governing board may make a determination contrary to the recommendation
33.16of the medical advisor only if there is expert medical evidence in the record to support
33.17its contrary decision. If there is no medical evidence contrary to the opinion of the
33.18medical advisor in the record and the medical advisor attests that the decision was made in
33.19accordance with the applicable disability standard, the board must follow the decision of
33.20the medical advisor regarding the cause of the disability.
33.21    (c) The obligation of the governing board to follow the decision of the medical
33.22advisor under paragraph (b) does not apply to instances when the governing board makes
33.23a determination different from the recommendation of the medical advisor on issues
33.24that do not involve medical issues.
33.25EFFECTIVE DATE.This section is effective July 1, 2016.

33.26    Sec. 20. Minnesota Statutes 2014, section 356.96, subdivision 12, is amended to read:
33.27    Subd. 12. Referral for administrative hearing. (a) Notwithstanding any provision
33.28of sections 14.03, 14.06, and 14.57 to 14.69 to the contrary, a challenge to a determination
33.29of the chief administrative officer of a covered pension plan A fact-finding conference
33.30under subdivision 7, paragraph (b), must be conducted exclusively under the procedures
33.31set forth in this section and is not as a contested case under chapter 14.
34.1    (b) Notwithstanding the provisions of paragraph (a), A governing board, in its sole
34.2discretion, may refer a petition brought under this section to the Office of Administrative
34.3Hearings for a contested case hearing under sections 14.57 to 14.69.
34.4EFFECTIVE DATE.This section is effective July 1, 2016.

34.5    Sec. 21. Minnesota Statutes 2014, section 356.96, subdivision 13, is amended to read:
34.6    Subd. 13. Appeal of the governing board's decision; judicial review. Within No
34.7later than 60 days of after the date of the mailing of the notice of the governing board's
34.8decision, the petitioner may appeal the decision by filing a writ of certiorari with the
34.9Court of Appeals under section 606.01 and Rule 115 of the Minnesota Rules of Civil
34.10Appellate Procedure. Failure by a person to appeal to the Court of Appeals within the
34.1160-day period precludes the person from later raising, in any subsequent administrative
34.12hearing or court proceeding, those substantive and procedural issues that reasonably
34.13should have been raised upon a timely appeal.

34.14    Sec. 22. REPEALER.
34.15Minnesota Statutes 2014, sections 356.611, subdivisions 3, 3a, 4, and 5; and 356.96,
34.16subdivisions 14 and 15, are repealed.
34.17EFFECTIVE DATE.This section is effective July 1, 2016.


34.20    Section 1. Minnesota Statutes 2015 Supplement, section 356.215, subdivision 8,
34.21is amended to read:
34.22    Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use the
34.23applicable following interest assumption:
34.24(1) select and ultimate interest rate assumption

34.25 34.26	plan	ultimate interest rate assumption
34.27	teachers retirement plan	8.5%

34.28The select preretirement interest rate assumption for the period through June 30,
34.292017, is eight percent.
34.30(2) single rate interest rate assumption

34.31 34.32	plan	interest rate assumption
34.33	general state employees retirement plan	8%
35.1	correctional state employees retirement plan	8
35.2	State Patrol retirement plan	8
35.3 35.4 35.5	legislators retirement plan, and for the constitutional officers calculation of total plan liabilities	0
35.6	judges retirement plan	8
35.7	general public employees retirement plan	8
35.8	public employees police and fire retirement plan	8
35.9 35.10	local government correctional service retirement plan	8
35.11	teachers retirement plan	8
35.12	St. Paul teachers retirement plan	8
35.13	Bloomington Fire Department Relief Association	6
35.14 35.15	local monthly benefit volunteer firefighter relief associations	5
35.16 35.17	monthly benefit retirement plans in the statewide volunteer firefighter retirement plan	6

35.18(b)(1) If funding stability has been attained, the valuation must use a postretirement
35.19adjustment rate actuarial assumption equal to the postretirement adjustment rate specified
35.20in section 354A.27, subdivision 7; 354A.29, subdivision 9;, or 356.415, subdivision 1,
35.21whichever applies.
35.22(2) If funding stability has not been attained, the valuation must use a select
35.23postretirement adjustment rate actuarial assumption equal to the postretirement adjustment
35.24rate specified in section 354A.27, subdivision 6a; 354A.29, subdivision 8;, or 356.415,
35.25subdivision 1a, 1b, 1c, 1d, 1e, or 1f, whichever applies, for a period ending when the
35.26approved actuary estimates that the plan will attain the defined funding stability measure,
35.27and thereafter an ultimate postretirement adjustment rate actuarial assumption equal
35.28to the postretirement adjustment rate under section 354A.27, subdivision 7; 354A.29,
35.29subdivision 9;, or 356.415, subdivision 1, for the applicable period or periods beginning
35.30when funding stability is projected to be attained.
35.31    (c) The actuarial valuation must use the applicable following single rate future salary
35.32increase assumption, the applicable following modified single rate future salary increase
35.33assumption, or the applicable following graded rate future salary increase assumption:
35.34    (1) single rate future salary increase assumption

35.35	plan	future salary increase assumption
35.36	legislators retirement plan		5%
35.37	judges retirement plan		2.75
35.38 35.39	Bloomington Fire Department Relief Association		4

36.1    (2) age-related future salary increase age-related select and ultimate future salary
36.2increase assumption or graded rate future salary increase assumption

36.3	plan	future salary increase assumption
36.4	local government correctional service retirement plan	assumption B
36.5	St. Paul teachers retirement plan	assumption A

36.6For plans other than the St. Paul Teachers
36.7Retirement plan and the local government
36.8correctional service retirement plan, the
36.9select calculation is: Fund Association,
36.10during the a designated select period of 15
36.11years, in addition to the age-based rates
36.12shown below, a designated percentage rate
36.13of 0.2 percent is multiplied by the result of
36.14the designated integer 15 minus T, where T
36.15is the number of completed years of service,
36.16and is added to the applicable future salary
36.17increase assumption. The designated select
36.18period is ten years and the designated integer
36.19is ten for the local government correctional
36.20service retirement plan and 15 for the St.
36.21Paul Teachers Retirement Fund Association.
36.22The designated percentage rate is 0.2 percent
36.23for the St. Paul Teachers Retirement Fund
36.24Association.
36.25    The ultimate future salary increase assumption is:

36.26	age	A	B
36.27	16	5.9%	8.75%
36.28	17	5.9	8.75
36.29	18	5.9	8.75
36.30	19	5.9	8.75
36.31	20	5.9	8.75
36.32	21	5.9	8.5
36.33	22	5.9	8.25
36.34	23	5.85	8
36.35	24	5.8	7.75
36.36	25	5.75	7.5
36.37	26	5.7	7.25
36.38	27	5.65	7
37.1	28	5.6	6.75
37.2	29	5.55	6.5
37.3	30	5.5	6.5
37.4	31	5.45	6.25
37.5	32	5.4	6.25
37.6	33	5.35	6.25
37.7	34	5.3	6
37.8	35	5.25	6
37.9	36	5.2	5.75
37.10	37	5.15	5.75
37.11	38	5.1	5.75
37.12	39	5.05	5.5
37.13	40	5	5.5
37.14	41	4.95	5.5
37.15	42	4.9	5.25
37.16	43	4.85	5
37.17	44	4.8	5
37.18	45	4.75	4.75
37.19	46	4.7	4.75
37.20	47	4.65	4.75
37.21	48	4.6	4.75
37.22	49	4.55	4.75
37.23	50	4.5	4.75
37.24	51	4.45	4.75
37.25	52	4.4	4.75
37.26	53	4.35	4.75
37.27	54	4.3	4.75
37.28	55	4.25	4.5
37.29	56	4.2	4.5
37.30	57	4.15	4.25
37.31	58	4.1	4
37.32	59	4.05	4
37.33	60	4	4
37.34	61	4	4
37.35	62	4	4
37.36	63	4	4
37.37	64	4	4
37.38	65	4	3.75
37.39	66	4	3.75
37.40	67	4	3.75
37.41	68	4	3.75
37.42	69	4	3.75
37.43	70	4	3.75

38.1(3) service-related ultimate future salary increase assumption

38.2 38.3	general state employees retirement plan of the Minnesota State Retirement System	assumption A
38.4 38.5	general employees retirement plan of the Public Employees Retirement Association	assumption B
38.6	Teachers Retirement Association	assumption C
38.7	public employees police and fire retirement plan	assumption D
38.8	State Patrol retirement plan	assumption E
38.9 38.10	correctional state employees retirement plan of the Minnesota State Retirement System	assumption F

38.11 38.12	service length	A	B	C	D	E	F
38.13 38.14	1	10.25 14%	11.78 11.5%	12 9.5%	12.75%	7.75%	5.75%
38.15	2	7.85 11.5	8.65 8.5	9 9.5	10.75	7.25	5.6
38.16	3	6.65 6.25	7.21 7	8 7.75	8.75	6.75	5.45
38.17	4	5.95 5.5	6.33 6	7.5 7.25	7.75	6.5	5.3
38.18	5	5.45 5.25	5.72 5.5	7.25 7	6.25	6.25	5.15
38.19	6	5.05 5.15	5.27 5.2	7	5.85	6	5
38.20	7	4.75 5	4.91 4.9	6.85	5.55	5.75	4.85
38.21	8	4.45 4.75	4.62 4.8	6.7	5.35	5.6	4.7
38.22	9	4.25 4.5	4.38 4.7	6.55	5.15	5.45	4.55
38.23	10	4.15 4.25	4.17 4.5	6.4	5.05	5.3	4.4
38.24	11	3.95 4.2	3.99 4.25	6.25	4.95	5.15	4.3
38.25	12	3.85 4.15	3.83 4.1	6	4.85	5	4.2
38.26	13	3.75 4.1	3.69 4	5.75	4.75	4.85	4.1
38.27	14	3.55 4.05	3.57 3.9	5.5	4.65	4.7	4
38.28	15	3.45 4	3.45 3.9	5.25	4.55	4.55	3.9
38.29	16	3.35 3.95	3.35 3.85	5	4.55	4.4	3.8
38.30	17	3.25 3.9	3.26 3.8	4.75	4.55	4.25	3.7
38.31	18	3.25 3.85	3.25 3.75	4.5	4.55	4.1	3.6
38.32	19	3.25 3.8	3.25 3.75	4.25 4.3	4.55	3.95	3.5
38.33	20	3.25 3.75	3.25 3.75	4 4.2	4.55	3.8	3.5
38.34	21	3.25 3.7	3.25 3.75	3.9 4.1	4.45	3.75	3.5
38.35	22	3.25 3.65	3.25 3.7	3.8 4	4.35	3.75	3.5
38.36	23	3.25 3.6	3.25 3.6	3.7 3.9	4.25	3.75	3.5
38.37	24	3.25 3.55	3.25 3.6	3.6 3.8	4.25	3.75	3.5
38.38	25	3.25 3.5	3.25 3.6	3.5 3.7	4.25	3.75	3.5
38.39	26	3.25 3.5	3.25 3.5	3.5 3.6	4.25	3.75	3.5
38.40	27	3.25 3.5	3.25 3.5	3.5	4.25	3.75	3.5
38.41	28	3.25 3.5	3.25 3.5	3.5	4.25	3.75	3.5
38.42	29	3.25 3.5	3.25 3.5	3.5	4.25	3.75	3.5
38.43	30 or more	3.25 3.5	3.25 3.5	3.5	4.25	3.75	3.5

39.1    (d) The actuarial valuation must use the applicable following payroll growth
39.2assumption for calculating the amortization requirement for the unfunded actuarial
39.3accrued liability where the amortization retirement is calculated as a level percentage
39.4of an increasing payroll:

39.5	plan	payroll growth assumption
39.6 39.7	general state employees retirement plan of the Minnesota State Retirement System	3.5%
39.8	correctional state employees retirement plan	3.5
39.9	State Patrol retirement plan	3.5
39.10	judges retirement plan	2.75
39.11 39.12	general employees retirement plan of the Public Employees Retirement Association	3.5
39.13	public employees police and fire retirement plan	3.5
39.14	local government correctional service retirement plan	3.5
39.15	teachers retirement plan	3.75 3.5
39.16	St. Paul teachers retirement plan	4

39.17    (e) The assumptions set forth in paragraphs (c) and (d) continue to apply, unless a
39.18different salary assumption or a different payroll increase assumption:
39.19    (1) has been proposed by the governing board of the applicable retirement plan;
39.20    (2) is accompanied by the concurring recommendation of the actuary retained under
39.21section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the
39.22most recent actuarial valuation report if section 356.214 does not apply; and
39.23    (3) has been approved or deemed approved under subdivision 18.
39.24EFFECTIVE DATE.This section is effective July 1, 2016, and applies to actuarial
39.25valuations prepared on or after that date.


39.28    Section 1. [424A.003] CERTIFICATION OF SERVICE CREDIT.
39.29(a) When a municipal fire department, a joint powers fire department, or an
39.30independent nonprofit firefighting corporation is directly associated with the volunteer
39.31firefighters relief association, the fire chief shall certify annually by March 31 the service
39.32credit for the previous calendar year of each volunteer firefighter rendering active service
39.33with the fire department.
39.34(b) The certification shall be made to an officer of the relief association's board
39.35of trustees and to the municipal clerk or clerk-treasurer of the largest municipality in
39.36population served by the associated fire department.
40.1(c) The fire chief shall notify each volunteer firefighter rendering active service with
40.2the fire department of the amount of service credit rendered by the firefighter for the
40.3previous calendar year. The service credit notification and a description of the process and
40.4deadlines for the firefighter to challenge the fire chief's determination of service credit
40.5must be provided to the firefighter 60 days prior to its certification to the relief association
40.6and municipality. If the service credit amount is challenged, the fire chief shall accept
40.7and consider any additional pertinent information and shall make a final determination of
40.8service credit.
40.9(d) The service credit certification must be expressed as the number of completed
40.10months of the previous year during which an active volunteer firefighter rendered at least
40.11the minimum level of duties as specified and required by the fire department under the
40.12rules, regulations, and policies applicable to the fire department. No more than one year of
40.13service credit may be certified for a calendar year.
40.14(e) If a volunteer firefighter who is a member of the relief association leaves active
40.15firefighting service to render active military service that is required to be governed by the
40.16federal Uniformed Services Employment and Reemployment Rights Act, as amended,
40.17the firefighter must be certified as providing service credit for the period of the military
40.18service, up to the applicable limit of the federal Uniformed Services Employment
40.19and Reemployment Rights Act. If the volunteer firefighter does not return from the
40.20military service in compliance with the federal Uniformed Services Employment and
40.21Reemployment Rights Act, the service credits applicable to that military service credit
40.22period are forfeited and canceled at the end of the calendar year in which the time limit
40.23set by federal law occurs.
40.24EFFECTIVE DATE.This section is effective January 1, 2017.

40.25    Sec. 2. Minnesota Statutes 2014, section 424A.01, is amended by adding a subdivision
40.26to read:
40.27    Subd. 4a. Prohibition on receipt of concurrent service credit. No firefighter may
40.28be credited with service credit in a volunteer firefighters relief association for the same
40.29hours of service for which coverage is already provided in a fund operated pursuant to
40.30chapter 353.
40.31EFFECTIVE DATE.This section is effective January 1, 2017, and applies to
40.32service rendered on or after that date.

41.1    Sec. 3. Minnesota Statutes 2014, section 424A.01, is amended by adding a subdivision
41.2to read:
41.3    Subd. 5a. Volunteer emergency medical personnel. Volunteer emergency
41.4medical personnel are eligible to be members of the applicable volunteer firefighters
41.5relief association and to qualify for service pension or other benefit coverage of the relief
41.6association on the same basis as fire department personnel who perform or supervise fire
41.7suppression or fire prevention duties, if:
41.8(1) the fire department employs or otherwise uses the services of persons solely as
41.9volunteer emergency medical personnel to perform emergency medical response duties or
41.10supervise emergency medical response activities;
41.11(2) the bylaws of the relief association authorize the eligibility; and
41.12(3) the eligibility is approved by:
41.13(i) the municipality, if the fire department is a municipal department;
41.14(ii) the joint powers board, if the fire department is a joint powers entity; or
41.15(iii) the contracting municipality or municipalities, if the fire department is an
41.16independent nonprofit firefighting corporation.
41.17EFFECTIVE DATE.This section is effective January 1, 2017, and applies to
41.18service rendered on or after that date.

41.19    Sec. 4. Minnesota Statutes 2014, section 424A.015, is amended by adding a
41.20subdivision to read:
41.21    Subd. 7. Combined service pensions. (a) A volunteer firefighter with credit for
41.22service as an active firefighter in more than one volunteer firefighters relief association is
41.23entitled to a prorated service pension from each relief association if:
41.24(1) the articles of incorporation or bylaws of the relief associations provide;
41.25(2) the applicable requirements of paragraphs (b) and (c) are met; and
41.26(3) the volunteer firefighter otherwise qualifies.
41.27(b) A volunteer firefighter receiving a prorated service pension under this subdivision
41.28must have a total combined amount of service credit from the two or more relief
41.29associations of ten years or more, unless the bylaws of every affected relief association
41.30specify less than a ten-year service vesting requirement, in which case, the total amount of
41.31required service credit is the longest service vesting requirement of the relief associations.
41.32The member must have one year or more of service credit in each relief association. The
41.33prorated service pension must be based on:
42.1(1) for defined benefit relief associations, the service pension amount in effect for
42.2the relief association on the date on which active volunteer firefighting services covered
42.3by that relief association terminate; and
42.4(2) for defined contribution relief associations, the member's individual account
42.5balance on the date on which active volunteer firefighting services covered by that relief
42.6association terminate.
42.7(c) To receive a prorated service pension under this subdivision, the firefighter
42.8must become a member of the second or succeeding association and must give notice of
42.9membership to the prior association within two years of the date of termination of active
42.10service with the prior association. The second or subsequent relief association secretary
42.11must certify the notice.
42.12EFFECTIVE DATE.This section is effective January 1, 2017.

42.13    Sec. 5. Minnesota Statutes 2015 Supplement, section 424A.02, subdivision 3, is
42.14amended to read:
42.15    Subd. 3. Flexible service pension maximums. (a) Annually on or before August
42.161 as part of the certification of the financial requirements and minimum municipal
42.17obligation determined under section 424A.092, subdivision 4, or 424A.093, subdivision 5,
42.18as applicable, the secretary or some other official of the relief association designated in the
42.19bylaws of each defined benefit relief association shall calculate and certify to the governing
42.20body of the applicable municipality the average amount of available financing per active
42.21covered firefighter for the most recent three-year period. The amount of available financing
42.22includes any amounts of fire state aid and police and firefighter retirement supplemental
42.23state aid received or receivable by the relief association, any amounts of municipal
42.24contributions to the relief association raised from levies on real estate or from other
42.25available revenue sources exclusive of fire state aid, and one-tenth of the amount of assets in
42.26excess of the accrued liabilities of the relief association calculated under section 424A.092,
42.27subdivision 2 ; 424A.093, subdivisions 2 and 4; or 424A.094, subdivision 2, if any.
42.28    (b) The maximum service pension which the defined benefit relief association has
42.29authority to provide for in its bylaws for payment to a member retiring after the calculation
42.30date when the minimum age and service requirements specified in subdivision 1 are met
42.31must be determined using the table in paragraph (c) or (d), whichever applies.
42.32    (c) For a defined benefit relief association where the governing bylaws provide for
42.33a monthly service pension to a retiring member, the maximum monthly service pension
42.34amount per month for each year of service credited that may be provided for in the bylaws
42.35is the greater of the service pension amount provided for in the bylaws on the date of the
43.1calculation of the average amount of the available financing per active covered firefighter
43.2or the maximum service pension figure corresponding to the average amount of available
43.3financing per active covered firefighter:

43.4 43.5 43.6	Minimum Average Amount of Available Financing per Firefighter		Maximum Service Pension Amount Payable per Month for Each Year of Service
43.7	$ ...		$ .25
43.8	41		.50
43.9	81		1.00
43.10	122		1.50
43.11	162		2.00
43.12	203		2.50
43.13	243		3.00
43.14	284		3.50
43.15	324		4.00
43.16	365		4.50
43.17	405		5.00
43.18	486		6.00
43.19	567		7.00
43.20	648		8.00
43.21	729		9.00
43.22	810		10.00
43.23	891		11.00
43.24	972		12.00
43.25	1053		13.00
43.26	1134		14.00
43.27	1215		15.00
43.28	1296		16.00
43.29	1377		17.00
43.30	1458		18.00
43.31	1539		19.00
43.32	1620		20.00
43.33	1701		21.00
43.34	1782		22.00
43.35	1823		22.50
43.36	1863		23.00
43.37	1944		24.00
43.38	2025		25.00
43.39	2106		26.00
43.40	2187		27.00
43.41	2268		28.00
43.42	2349		29.00
43.43	2430		30.00
44.1	2511		31.00
44.2	2592		32.00
44.3	2673		33.00
44.4	2754		34.00
44.5	2834		35.00
44.6	2916		36.00
44.7	2997		37.00
44.8	3078		38.00
44.9	3159		39.00
44.10	3240		40.00
44.11	3321		41.00
44.12	3402		42.00
44.13	3483		43.00
44.14	3564		44.00
44.15	3645		45.00
44.16	3726		46.00
44.17	3807		47.00
44.18	3888		48.00
44.19	3969		49.00
44.20	4050		50.00
44.21	4131		51.00
44.22	4212		52.00
44.23	4293		53.00
44.24	4374		54.00
44.25	4455		55.00
44.26	4536		56.00
44.27	4617		57.00
44.28	4698		58.00
44.29	4779		59.00
44.30	4860		60.00
44.31	4941		61.00
44.32	5022		62.00
44.33	5103		63.00
44.34	5184		64.00
44.35	5265		65.00
44.36	5346		66.00
44.37	5427		67.00
44.38	5508		68.00
44.39	5589		69.00
44.40	5670		70.00
44.41	5751		71.00
44.42	5832		72.00
44.43	5913		73.00
45.1	5994		74.00
45.2	6075		75.00
45.3	6156		76.00
45.4	6237		77.00
45.5	6318		78.00
45.6	6399		79.00
45.7	6480		80.00
45.8	6561		81.00
45.9	6642		82.00
45.10	6723		83.00
45.11	6804		84.00
45.12	6885		85.00
45.13	6966		86.00
45.14	7047		87.00
45.15	7128		88.00
45.16	7209		89.00
45.17	7290		90.00
45.18	7371		91.00
45.19	7452		92.00
45.20	7533		93.00
45.21	7614		94.00
45.22	7695		95.00
45.23	7776		96.00
45.24	7857		97.00
45.25	7938		98.00
45.26	8019		99.00
45.27	8100		100.00
45.28	any amount in excess of
45.29	8100		100.00

45.30    (d) For a defined benefit relief association in which the governing bylaws provide
45.31for a lump-sum service pension to a retiring member, the maximum lump-sum service
45.32pension amount for each year of service credited that may be provided for in the bylaws is
45.33the greater of the service pension amount provided for in the bylaws on the date of the
45.34calculation of the average amount of the available financing per active covered firefighter
45.35or the maximum service pension figure corresponding to the average amount of available
45.36financing per active covered firefighter for the applicable specified period:

45.37 45.38 45.39	Minimum Average Amount of Available Financing per Firefighter		Maximum Lump-Sum Service Pension Amount Payable for Each Year of Service
45.40	$ ...		$ 10
45.41	11		20
45.42	16		30
46.1	23		40
46.2	27		50
46.3	32		60
46.4	43		80
46.5	54		100
46.6	65		120
46.7	77		140
46.8	86		160
46.9	97		180
46.10	108		200
46.11	131		240
46.12	151		280
46.13	173		320
46.14	194		360
46.15	216		400
46.16	239		440
46.17	259		480
46.18	281		520
46.19	302		560
46.20	324		600
46.21	347		640
46.22	367		680
46.23	389		720
46.24	410		760
46.25	432		800
46.26	486		900
46.27	540		1000
46.28	594		1100
46.29	648		1200
46.30	702		1300
46.31	756		1400
46.32	810		1500
46.33	864		1600
46.34	918		1700
46.35	972		1800
46.36	1026		1900
46.37	1080		2000
46.38	1134		2100
46.39	1188		2200
46.40	1242		2300
46.41	1296		2400
46.42	1350		2500
46.43	1404		2600
47.1	1458		2700
47.2	1512		2800
47.3	1566		2900
47.4	1620		3000
47.5	1672		3100
47.6	1726		3200
47.7	1753		3250
47.8	1780		3300
47.9	1820		3375
47.10	1834		3400
47.11	1888		3500
47.12	1942		3600
47.13	1996		3700
47.14	2023		3750
47.15	2050		3800
47.16	2104		3900
47.17	2158		4000
47.18	2212		4100
47.19	2265		4200
47.20	2319		4300
47.21	2373		4400
47.22	2427		4500
47.23	2481		4600
47.24	2535		4700
47.25	2589		4800
47.26	2643		4900
47.27	2697		5000
47.28	2751		5100
47.29	2805		5200
47.30	2859		5300
47.31	2913		5400
47.32	2967		5500
47.33	3021		5600
47.34	3075		5700
47.35	3129		5800
47.36	3183		5900
47.37	3237		6000
47.38	3291		6100
47.39	3345		6200
47.40	3399		6300
47.41	3453		6400
47.42	3507		6500
47.43	3561		6600
48.1	3615		6700
48.2	3669		6800
48.3	3723		6900
48.4	3777		7000
48.5	3831		7100
48.6	3885		7200
48.7	3939		7300
48.8	3993		7400
48.9	4047		7500
48.10	4101		7600
48.11	4155		7700
48.12	4209		7800
48.13	4263		7900
48.14	4317		8000
48.15	4371		8100
48.16	4425		8200
48.17	4479		8300
48.18	4533		8400
48.19	4587		8500
48.20	4641		8600
48.21	4695		8700
48.22	4749		8800
48.23	4803		8900
48.24	4857		9000
48.25	4911		9100
48.26	4965		9200
48.27	5019		9300
48.28	5073		9400
48.29	5127		9500
48.30	5181		9600
48.31	5235		9700
48.32	5289		9800
48.33	5343		9900
48.34	5397		10,000
48.35	any amount in excess of 5451		10,100
48.36	5397 5505		10,000 10,200
48.37	5559		10,300
48.38	5613		10,400
48.39	5667		10,500
48.40	5721		10,600
48.41	5775		10,700
48.42	5829		10,800
48.43	5883		10,900
49.1	5937		11,000
49.2	5991		11,100
49.3	6045		11,200
49.4	6099		11,300
49.5	6153		11,400
49.6	6207		11,500
49.7	6261		11,600
49.8	6315		11,700
49.9	6369		11,800
49.10	6423		11,900
49.11	6477		12,000
49.12	6531		12,100
49.13	6585		12,200
49.14	6639		12,300
49.15	6693		12,400
49.16	6747		12,500
49.17	6801		12,600
49.18	6855		12,700
49.19	6909		12,800
49.20	6963		12,900
49.21	7017		13,000
49.22	7071		13,100
49.23	7125		13,200
49.24	7179		13,300
49.25	7233		13,400
49.26	7287		13,500
49.27	7341		13,600
49.28	7395		13,700
49.29	7449		13,800
49.30	7503		13,900
49.31	7557		14,000
49.32	7611		14,100
49.33	7665		14,200
49.34	7719		14,300
49.35	7773		14,400
49.36	7827		14,500
49.37	7881		14,600
49.38	7935		14,700
49.39	7989		14,800
49.40	8043		14,900
49.41	8097		15,000
49.42	any amount in excess of 8097		15,000

50.1    (e) For a defined benefit relief association in which the governing bylaws provide
50.2for a monthly benefit service pension as an alternative form of service pension payment
50.3to a lump-sum service pension, the maximum service pension amount for each pension
50.4payment type must be determined using the applicable table contained in this subdivision.
50.5    (f) If a defined benefit relief association establishes a service pension in compliance
50.6with the applicable maximum contained in paragraph (c) or (d) and the minimum average
50.7amount of available financing per active covered firefighter is subsequently reduced
50.8because of a reduction in fire state aid or because of an increase in the number of active
50.9firefighters, the relief association may continue to provide the prior service pension
50.10amount specified in its bylaws, but may not increase the service pension amount until
50.11the minimum average amount of available financing per firefighter under the table in
50.12paragraph (c) or (d), whichever applies, permits.
50.13    (g) No defined benefit relief association is authorized to provide a service pension in
50.14an amount greater than the largest applicable flexible service pension maximum amount
50.15even if the amount of available financing per firefighter is greater than the financing
50.16amount associated with the largest applicable flexible service pension maximum.
50.17(h) The method of calculating service pensions must be applied uniformly for all
50.18years of active service. Credit must be given for all years of active service except for caps
50.19on service credit if so provided in the bylaws of the relief association.
50.20EFFECTIVE DATE; LOCAL APPROVAL.(a) For relief associations other than
50.21the Eden Prairie volunteer firefighters relief association, this section is effective January
50.221, 2017.
50.23(b) For the Eden Prairie volunteer firefighters relief association, this section is
50.24effective the day after the city council of Eden Prairie and its chief clerical officer timely
50.25complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

50.26    Sec. 6. Minnesota Statutes 2014, section 424B.20, subdivision 4, is amended to read:
50.27    Subd. 4. Benefit trust fund establishment. (a) After the settlement of nonbenefit
50.28legal obligations of the special fund of the volunteer firefighters relief association under
50.29subdivision 3, the board of the relief association shall transfer the remaining assets of the
50.30special fund, as securities or in cash, as applicable, to the chief financial official of the
50.31municipality in which the associated fire department was located if the fire department was
50.32a municipal fire department or to the chief financial official of the municipality with the
50.33largest population served by the fire department if the fire department was an independent
50.34nonprofit firefighting corporation. If the fire department was a joint powers entity, the
50.35remaining assets of the special fund shall be transferred to the chief financial official of
51.1the municipality designated as the fiscal agent in the joint powers agreement or, if the
51.2agreement does not designate a municipality as the fiscal agent, the remaining assets of
51.3the special fund shall be transferred to the chief financial official of the municipality with
51.4the largest population served by the joint powers fire department. The board shall also
51.5compile a schedule of the relief association members to whom a service pension is or will
51.6be owed, any beneficiary to whom a benefit is owed, the amount of the service pension or
51.7benefit payable based on the applicable bylaws and state law and the service rendered to
51.8the date of the dissolution, and the date on which the pension or benefit would first be
51.9payable under the bylaws of the relief association and state law.
51.10(b) The municipality in which is located receiving the remaining assets of the special
51.11fund of a volunteer firefighters relief association that is dissolving under this section shall
51.12establish a separate account in the municipal treasury which must function as a trust fund
51.13for members of the volunteer firefighters relief association and their beneficiaries to whom
51.14the volunteer firefighters relief association owes a service pension or other benefit under
51.15the bylaws of the relief association and state law. Upon proper application, on or after the
51.16initial date on which the service pension or benefit is payable, the municipal treasurer shall
51.17pay the pension or benefit due, based on the schedule prepared under paragraph (a) and the
51.18other records of the dissolved relief association. The trust fund under this section must be
51.19invested and managed consistent with chapter 356A and section 424A.095. Upon payment
51.20of the last service pension or benefit due and owing, any remaining assets in the trust
51.21fund cancel to the general fund of the municipality. or, if the fire department was a joint
51.22powers entity, any remaining assets in the trust fund cancel to the general fund of each
51.23municipality that was a contracting party to the joint powers agreement as specified in the
51.24joint powers agreement. If the joint powers agreement does not specify how the remaining
51.25assets are to be distributed among the contracting parties, each of the contracting parties
51.26shall receive a pro rata share of the remaining assets based on the proportion of total
51.27operating contributions each contracting municipality made to the joint powers entity over
51.28the most recent ten calendar years. If the special fund of the volunteer firefighters relief
51.29association had an unfunded actuarial accrued liability upon dissolution, the municipality
51.30is liable for that unfunded actuarial accrued liability. If the fire department was a joint
51.31powers entity, the contracting municipalities are liable for their share of the unfunded
51.32actuarial accrued liability as specified in the joint powers agreement. If the joint powers
51.33agreement does not specify liability for any unfunded actuarial accrued liability, the
51.34contracting municipalities are liable for their pro rata share of the unfunded actuarial
51.35accrued liability based on the proportion of total operating contributions each contracting
51.36municipality made to the joint powers entity over the most recent ten calendar years.
52.1EFFECTIVE DATE.This section is effective January 1, 2017.

52.2    Sec. 7. EDEN PRAIRIE VOLUNTEER FIREFIGHTERS RELIEF
52.3ASSOCIATION SERVICE PENSIONS; RETURN TO ACTIVE SERVICE.
52.4(a) Notwithstanding any provision of Minnesota Statutes, section 424A.01,
52.5subdivision 6, section 424A.02, subdivision 2, or any other provision of law to the
52.6contrary, if the bylaws of the Eden Prairie volunteer firefighters relief association so
52.7provide, a former firefighter who has received a lump-sum service pension or is receiving
52.8a monthly benefit service pension and returns to active relief association membership
52.9under Minnesota Statutes, section 424A.01, subdivision 6, paragraph (b), is entitled to
52.10receive an unreduced lump-sum service pension for the resumption service period if the
52.11firefighter completes at least three years of active service as an active member of the fire
52.12department during the resumption service period and completes at least three years of
52.13active membership with the relief association during the resumption service period.
52.14(b) A lump-sum service pension must be calculated by applying the service pension
52.15amount in effect on the date of the firefighter's termination of the resumption service for
52.16all years of the resumption service. No firefighter may be paid a service pension more
52.17than once for the same period of service. Payment of a lump-sum service pension shall
52.18have no effect on the firefighter's previous service pension.
52.19EFFECTIVE DATE.This section is effective the day after the Eden Prairie city
52.20council and its chief clerical officer timely complete their compliance with Minnesota
52.21Statutes, section 645.021, subdivisions 2 and 3.

52.22    Sec. 8. COLERAINE AND BOVEY VOLUNTEER FIREFIGHTERS RELIEF
52.23ASSOCIATIONS; CONSOLIDATION.
52.24    Subdivision 1. Consolidation. Notwithstanding any provision of Minnesota
52.25Statutes, section 424B.02, subdivision 2, paragraph (c), to the contrary, the Coleraine and
52.26Bovey volunteer firefighters relief associations are consolidated effective September 1,
52.272016, if all other consolidation requirements are satisfied pursuant to Minnesota Statutes,
52.28chapter 424B.
52.29    Subd. 2. Reporting. The consolidated relief association created under subdivision
52.301 shall report the number of active firefighter members of the relief association as of
52.31September 1, 2016, to the state auditor and to the commissioner of revenue no later
52.32than September 7, 2016. The commissioner may use this information to determine and
53.1calculate any minimum fire state aid payable under Minnesota Statutes, section 69.021,
53.2beginning with aid payable in 2016.
53.3EFFECTIVE DATE.This section is effective the day following final enactment.

53.4    Sec. 9. REPEALER.
53.5Minnesota Statutes 2014, section 424A.02, subdivision 13, is repealed.
53.6EFFECTIVE DATE.This section is effective January 1, 2017.


53.9    Section 1. Minnesota Statutes 2014, section 352.113, subdivision 2, is amended to read:
53.10    Subd. 2. Application; accrual of benefits. (a) An employee making claim for a total
53.11and permanent disability benefit, or someone acting on behalf of the employee upon proof
53.12of authority satisfactory to the director, shall file a written application for benefits in the
53.13office of the system on or before the deadline specified in subdivision 4, paragraph (f) or (g).
53.14(b) The application must be in a form and manner prescribed by the executive director.
53.15(c) The benefit shall begin to accrue the day following the start of disability or the
53.16day following the last day paid, whichever is later, but not earlier than 180 days before the
53.17date the application is filed with the director.
53.18EFFECTIVE DATE.This section is effective July 1, 2016.

53.19    Sec. 2. Minnesota Statutes 2014, section 352.113, subdivision 4, is amended to read:
53.20    Subd. 4. Medical or psychological examinations; authorization for payment of
53.21benefit. (a) Any physician, psychologist, chiropractor, or physician assistant providing
53.22any service specified in this section must be licensed.
53.23(b) An applicant shall provide a detailed report signed by a physician, and at least
53.24one additional report signed by a physician, chiropractor, psychologist, or physician
53.25assistant with evidence to support an application for total and permanent disability. The
53.26reports must include an expert opinion regarding whether the employee is permanently
53.27and totally disabled within the meaning of section 352.01, subdivision 17, and that the
53.28disability arose before the employee was placed on any paid or unpaid leave of absence or
53.29terminated public service.
53.30(c) If there is medical evidence that supports the expectation that at some point
53.31the person applying for the disability benefit will no longer be disabled, the decision
53.32granting the disability benefit may provide for a termination date upon which the total and
54.1permanent disability can be expected to no longer exist. When a termination date is part
54.2of the decision granting benefits, prior to the benefit termination the executive director
54.3shall review any evidence provided by the disabled employee to show that the disabling
54.4condition for which benefits were initially granted continues. If the benefits cease, the
54.5disabled employee may follow the appeal procedures described in section 356.96 or may
54.6reapply for disability benefits using the process described in this subdivision.
54.7(d) Any claim to disability must be supported by a report from the employer
54.8indicating that there is no available work that the employee can perform with the disabling
54.9condition and that all reasonable accommodations have been considered. Upon request of
54.10the executive director, an employer shall provide evidence of the steps the employer has
54.11taken to attempt to provide reasonable accommodations and continued employment to
54.12the claimant.
54.13(e) The director shall also obtain written certification from the employer stating
54.14whether the employment has ceased or whether the employee is on sick leave of absence
54.15because of a disability that will prevent further service to the employer and that the
54.16employee is not entitled to compensation from the employer.
54.17(f) The medical adviser shall consider the reports of the physicians, physician
54.18assistants, psychologists, and chiropractors and any other evidence supplied by the
54.19employee or other interested parties. If the medical adviser finds the employee totally and
54.20permanently disabled, the adviser shall make appropriate recommendation to the director
54.21in writing together with the date from which the employee has been totally disabled. The
54.22director shall then determine if the disability occurred within 18 months of filing the
54.23application, if the disability occurred while still in the employment of the state, and the
54.24propriety of authorizing payment of a disability benefit as provided in this section.
54.25(g) A terminated employee may apply for a disability benefit within 18 months of
54.26termination as long as the disability occurred while in the employment of the state. The
54.27fact that an employee is placed on leave of absence without compensation because of
54.28disability does not bar that employee from receiving a disability benefit.
54.29(h) Upon appeal, the board of directors may extend the disability benefit application
54.30deadline in paragraph (f) or (g) by an additional 18 months if the terminated employee
54.31is determined to have a cognitive impairment that made it unlikely that the terminated
54.32employee understood that there was an applicable standard deadline or that the terminated
54.33employee was able to meet the standard deadline.
54.34(i) Unless the payment of a disability benefit has terminated because the employee is
54.35no longer totally disabled, or because the employee has reached normal retirement age as
54.36provided in this section, the disability benefit must cease with the last payment received
55.1by the disabled employee or which had accrued during the lifetime of the employee unless
55.2there is a spouse surviving. In that event, the surviving spouse is entitled to the disability
55.3benefit for the calendar month in which the disabled employee died.
55.4EFFECTIVE DATE.This section is effective July 1, 2016.


55.7    Section 1. Minnesota Statutes 2014, section 353.01, subdivision 43, is amended to read:
55.8    Subd. 43. Line of duty death. "Line of duty death" means:
55.9    (1) a death that occurs while performing or as a direct result of performing normal or
55.10less frequent duties which are specific to protecting the property and personal safety of
55.11others and that present inherent dangers that are specific to the positions covered by the
55.12public employees police and fire plan.; or
55.13    (2) a death that is determined by the commissioner of public safety to meet the
55.14requirements of section 299A.41, subdivision 3.
55.15EFFECTIVE DATE.This section is effective the day following final enactment.


55.18    Section 1. Minnesota Statutes 2014, section 356.24, subdivision 1, is amended to read:
55.19    Subdivision 1. Restriction; exceptions. It is unlawful for a school district or other
55.20governmental subdivision or state agency to levy taxes for or to contribute public funds to
55.21a supplemental pension or deferred compensation plan that is established, maintained,
55.22and operated in addition to a primary pension program for the benefit of the governmental
55.23subdivision employees other than:
55.24    (1) to a supplemental pension plan that was established, maintained, and operated
55.25before May 6, 1971;
55.26    (2) to a plan that provides solely for group health, hospital, disability, or death
55.27benefits;
55.28    (3) to the individual retirement account plan established by chapter 354B;
55.29    (4) to a plan that provides solely for severance pay under section 465.72 to a retiring
55.30or terminating employee;
55.31    (5) for employees other than personnel employed by the Board of Trustees of the
55.32Minnesota State Colleges and Universities and covered under the Higher Education
55.33Supplemental Retirement Plan under chapter 354C, but including city managers covered
56.1by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph
56.2(a), or by the defined contribution plan of the Public Employees Retirement Association
56.3under section 353.028, subdivision 3, paragraph (b), if the supplemental plan coverage is
56.4provided for in a personnel policy of the public employer or in the collective bargaining
56.5agreement between the public employer and the exclusive representative of public
56.6employees in an appropriate unit or in the individual employment contract between a city
56.7and a city manager, and if for each available investment all fees and historic rates of return
56.8for the prior one-, three-, five-, and ten-year periods, or since inception, are disclosed in an
56.9easily comprehended document not to exceed two pages, in an amount matching employee
56.10contributions on a dollar for dollar basis, but not to exceed an employer contribution of
56.11one-half of the available elective deferral permitted per year per employee, under the
56.12Internal Revenue Code:
56.13    (i) to the state of Minnesota deferred compensation plan under section 352.965;
56.14    (ii) in payment of the applicable portion of the contribution made to any investment
56.15eligible under section 403(b) of the Internal Revenue Code, if the employing unit has
56.16complied with any applicable pension plan provisions of the Internal Revenue Code with
56.17respect to the tax-sheltered annuity program during the preceding calendar year; or
56.18    (iii) any other deferred compensation plan offered by the employer under section
56.19457 of the Internal Revenue Code;
56.20    (6) for personnel employed by the Board of Trustees of the Minnesota State Colleges
56.21and Universities and not covered by clause (5), to the supplemental retirement plan under
56.22chapter 354C, if the supplemental plan coverage is provided for in a personnel policy
56.23or in the collective bargaining agreement of the public employer with the exclusive
56.24representative of the covered employees in an appropriate unit, in an amount matching
56.25employee contributions on a dollar for dollar basis, but not to exceed an employer
56.26contribution of $2,700 a year for each employee;
56.27    (7) to a supplemental plan or to a governmental trust to save for postretirement
56.28health care expenses qualified for tax-preferred treatment under the Internal Revenue
56.29Code, if the supplemental plan coverage is provided for in a personnel policy or in the
56.30collective bargaining agreement of a public employer with the exclusive representative of
56.31the covered employees in an appropriate unit;
56.32    (8) to the laborers national industrial pension fund or to a laborers local pension fund
56.33for the employees of a governmental subdivision who are covered by a collective bargaining
56.34agreement that provides for coverage by that fund and that sets forth a fund contribution
56.35rate, but not to exceed an employer contribution of $5,000 $7,000 per year per employee;
57.1    (9) to the plumbers and pipefitters national pension fund or to a plumbers and
57.2pipefitters local pension fund for the employees of a governmental subdivision who are
57.3covered by a collective bargaining agreement that provides for coverage by that fund and
57.4that sets forth a fund contribution rate, but not to exceed an employer contribution of
57.5$5,000 per year per employee;
57.6    (10) to the international union of operating engineers pension fund for the employees
57.7of a governmental subdivision who are covered by a collective bargaining agreement that
57.8provides for coverage by that fund and that sets forth a fund contribution rate, but not to
57.9exceed an employer contribution of $5,000 per year per employee;
57.10    (11) to a supplemental plan organized and operated under the federal Internal
57.11Revenue Code, as amended, that is wholly and solely funded by the employee's
57.12accumulated sick leave, accumulated vacation leave, and accumulated severance pay;
57.13    (12) to the International Association of Machinists national pension fund for the
57.14employees of a governmental subdivision who are covered by a collective bargaining
57.15agreement that provides for coverage by that fund and that sets forth a fund contribution
57.16rate, but not to exceed an employer contribution of $5,000 per year per employee;
57.17    (13) for employees of United Hospital District, Blue Earth, to the state of Minnesota
57.18deferred compensation program, if the employee makes a contribution, in an amount that
57.19does not exceed the total percentage of covered salary under section 353.27, subdivisions
57.203 and 3a;
57.21(14) to the alternative retirement plans established by the Hennepin County Medical
57.22Center under section 383B.914, subdivision 5; or
57.23(15) to the International Brotherhood of Teamsters Central States pension plan for
57.24fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who
57.25are members of the International Brotherhood of Teamsters Local 638 by virtue of that
57.26employment.

57.27    Sec. 2. [356.631] ADDITIONAL SOURCES OF FUNDING.
57.28Notwithstanding any other provision of law to the contrary, in addition to all sources
57.29of funding described in Minnesota Statutes, section 356.63, paragraphs (a) and (b), any
57.30public retirement plan described in Minnesota Statutes, section 356.63, paragraph (b), is
57.31authorized to accept, at its discretion, for deposit in its fund the following:
57.32(1) gifts;
57.33(2) donations;
57.34(3) bequests; and
57.35(4) life insurance death benefits.
58.1EFFECTIVE DATE.This section is effective the day following final enactment.

58.2    Sec. 3. REPEALER.
58.3Minnesota Statutes 2014, sections 352.04, subdivision 11; and 353.34, subdivision
58.46, are repealed.
58.5EFFECTIVE DATE.This section is effective the day following final enactment.


58.8    Section 1. MSRS-GENERAL RETIREMENT ELIGIBILITY CLARIFICATION;
58.9SERVICE CREDIT PURCHASE IN CERTAIN INSTANCES.
58.10(a) Notwithstanding any provision of law to the contrary, an eligible person
58.11described in paragraph (b) is entitled to purchase prior uncredited service credit under
58.12paragraph (c) and, if the service credit purchase is made, to have an effective start date
58.13for active retirement plan membership of June 1, 1989, and to retire under Minnesota
58.14Statutes, section 352.116, subdivision 1.
58.15(b) An eligible person is a person who:
58.16(1) was born on the dates as follows:

58.17		employee	birth date
58.18		A	October 2, 1968
58.19		B	June 12, 1965
58.20		C	August 10, 1958
58.21		D	April 29, 1963
58.22		E	April 11, 1955
58.23		F	August 13, 1966
58.24		G	April 22, 1961
58.25		H	December 31, 1958
58.26		I	October 10, 1966
58.27		J	February 4, 1961
58.28		K	August 21, 1963
58.29		L	January 23, 1960
58.30		M	September 19, 1966
58.31		N	November 3, 1961
58.32		O	June 13, 1958
58.33		P	June 23, 1954
58.34		Q	October 20, 1956
58.35		R	July 28, 1955
58.36		S	May 6, 1960
58.37		T	March 19, 1966
59.1		U	August 19, 1966
59.2		V	March 14, 1959

59.3(2) became an employee of the Minnesota Department of Transportation prior
59.4to July 1, 1989, in a position which was not covered by the general state employees
59.5retirement plan of the Minnesota State Retirement System;
59.6(3) was eventually employed as a permanent employee after June 30, 1989, and
59.7covered by the general state employees retirement plan of the Minnesota State Retirement
59.8System on the dates as follows:

59.9		employee	membership record date
59.10		A	September 27, 1989
59.11		B	September 27, 1989
59.12		C	September 26, 1989
59.13		D	September 27, 1989
59.14		E	September 26, 1989
59.15		F	September 13, 1989
59.16		G	September 1, 1989
59.17		H	September 27, 1989
59.18		I	September 27, 1989
59.19		J	September 13, 1989
59.20		K	September 13, 1989
59.21		L	September 26, 1989
59.22		M	August 30, 1989
59.23		N	September 26, 1989
59.24		O	September 13, 1989
59.25		P	September 27, 1989
59.26		Q	September 27, 1989
59.27		R	September 27, 1989
59.28		S	September 13, 1989
59.29		T	September 13, 1989
59.30		U	September 27, 1989
59.31		V	September 26, 1989

59.32(4) was sent annual statements by the Minnesota State Retirement System between
59.33July 1, 2005, and July 1, 2015, indicating eligibility for a retirement benefit under
59.34Minnesota Statutes, section 352.116, subdivision 1; and
59.35(5) was sent notification from the Minnesota State Retirement System revising the
59.36start date for general state employees retirement plan membership from a date before
59.37July 1, 1989, to a date after June 30, 1989, and indicating consequent inapplicability of
59.38Minnesota Statutes, section 352.116, subdivision 1.
59.39(c) An eligible person may purchase allowable service credit in the general state
59.40employees retirement plan of the Minnesota State Retirement System by paying an
60.1amount equal to the employer contributions and employee contributions that would have
60.2been paid from June 1, 1989, to the end of the month prior to the date the employee
60.3entered covered service plus interest at the rate of 8.5 percent until June 30, 2015, and
60.4eight percent thereafter compounded annually on the combined employer and employee
60.5contribution amount from the date the contributions would have been paid to the date the
60.6Minnesota State Retirement System receives payment for this service credit purchase.
60.7The payment must be made in a lump sum.
60.8(d) An eligible person who purchases allowable service credit under paragraph (c)
60.9has a June 1, 1989, start date for the purpose of allowable service credited by the general
60.10state employees retirement plan of the Minnesota State Retirement System and is eligible
60.11for a retirement annuity under Minnesota Statutes, section 352.116, subdivision 1.
60.12(e) Authority to purchase prior uncredited service credit under this section expires
60.13on July 1, 2017.
60.14EFFECTIVE DATE.This section is effective the day following final enactment.

60.15    Sec. 2. PERA-GENERAL; PURCHASE OF SERVICE CREDIT FOR ST.
60.16CLOUD STATE UNIVERSITY EMPLOYEE.
60.17(a) Notwithstanding any provision of law to the contrary, an eligible person described
60.18in paragraph (b) is entitled to purchase from the general employees retirement plan of the
60.19Public Employees Retirement Association allowable service credit under Minnesota
60.20Statutes, section 353.01, subdivision 16, for the period of service described in paragraph (c).
60.21(b) An eligible person is a person who:
60.22(1) was born on September 1, 1960;
60.23(2) was an employee of St. Cloud State University on March 14, 2016;
60.24(3) was a member of the general employees retirement plan of the Public Employees
60.25Retirement Association on March 14, 2016;
60.26(4) was employed by St. Cloud Technical College on April 1, 1993, and was a
60.27member of the general employees retirement plan of the Public Employees Retirement
60.28Association; and
60.29(5) changed employment within St. Cloud State University on February 22, 2006,
60.30and was erroneously placed into the higher education individual retirement account
60.31plan from February 22, 2006, until May 10, 2011, by the Minnesota State Colleges and
60.32Universities System.
60.33(c) The period of uncredited service authorized for purchase is the period of February
60.3422, 2006, until May 10, 2011, during which the eligible person was erroneously placed
60.35into and contributed to the higher education individual retirement account plan.
61.1(d) The eligible person's member contributions to the higher education individual
61.2retirement account plan must be transferred to the Public Employees Retirement
61.3Association with any earned investment returns on those contributions. The eligible
61.4person must pay the member contributions that the eligible person would have made to
61.5the Public Employees Retirement Association on the eligible person's compensation from
61.6the Minnesota State Colleges and Universities System for the period of service described
61.7in paragraph (c) as if the person had been covered by the Public Employees Retirement
61.8Association during the period, plus annual compound interest on that amount at the rate
61.9of 8.5 percent from February 22, 2006, until June 30, 2015, and eight percent from July
61.101, 2015, until the date on which payment is made to the Public Employees Retirement
61.11Association, less the transferred member contributions and investment earnings.
61.12(e) Upon transfer of the equivalent member contribution amount and any additional
61.13payments under paragraph (d), the balance of the eligible person's higher education
61.14individual retirement account plan account must be transferred to the Public Employees
61.15Retirement Association within 60 days following the receipt of the eligible person's
61.16payment under paragraph (d).
61.17(f) Upon the transfer of the amounts under paragraphs (d) and (e), the Minnesota
61.18State Colleges and Universities System shall pay the prior service credit purchase payment
61.19amount calculated under Minnesota Statutes, section 356.551, less any amounts received
61.20under paragraphs (d) and (e), within 60 days following the receipt of the eligible person's
61.21payment under paragraph (d).
61.22(g) Upon the transfers and payments under paragraph (f), the eligible person must be
61.23credited by the Public Employees Retirement Association with allowable service credit
61.24for Minnesota State Colleges and Universities System employment from February 22,
61.252006, until May 10, 2011.
61.26(h) Authority to make a service credit purchase under this section expires January
61.271, 2017.
61.28EFFECTIVE DATE.This section is effective the day following final enactment.

61.29    Sec. 3. TRA COVERAGE ELECTION AND PERA REFUND REPAYMENT
61.30AUTHORITY FOR CERTAIN MNSCU EMPLOYEE.
61.31(a) Notwithstanding any provision of Minnesota Statutes, chapter 353 or 354B,
61.32to the contrary, an eligible person described in paragraph (b) is eligible to become a
61.33coordinated member of the Teachers Retirement Association and to purchase service
61.34and salary credit in the Teachers Retirement Association coordinated plan retroactively
61.35from July 1, 2001, upon repaying a member contribution refund taken from the general
62.1employees retirement plan of the Public Employees Retirement Association under
62.2paragraph (c), upon making an election under paragraph (e), and upon making all required
62.3payments under paragraphs (f) and (g).
62.4(b) An eligible person is a person who:
62.5(1) was born April 4, 1956;
62.6(2) was employed by a governmental subdivision in 1995, with retirement coverage
62.7in the general employees retirement plan of the Public Employees Retirement Association,
62.8for which a refund of member contributions and interest was taken before 2001;
62.9(3) was employed by St. Cloud State University in the late 1990s, with retirement
62.10coverage in the general state employees retirement plan of the Minnesota State Retirement
62.11System;
62.12(4) was hired as an academic advisor by St. Cloud State University on July 1, 2001,
62.13with retirement coverage in the higher education individual retirement account plan; and
62.14(5) was not informed of the option to elect Teachers Retirement Association
62.15coverage in the coverage election authorized by Minnesota Statutes 2001, section
62.16354B.21, so remained in the higher education individual retirement account plan.
62.17(c) The refund repayment required by Minnesota Statutes, section 356.551,
62.18subdivision 1, paragraph (c), must be calculated under Minnesota Statutes, section 353.35,
62.19subdivision 1, paragraph (c).
62.20(d) Authority to repay a refund under this section expires January 1, 2017.
62.21(e) To be eligible for coverage by the Teachers Retirement Association, an eligible
62.22person must submit a written application to the executive director of the Teachers
62.23Retirement Association on a form provided by the Teachers Retirement Association. The
62.24application must include all documentation of the applicability of this section and any
62.25other relevant information that the executive director may require. Teachers Retirement
62.26Association plan membership commences after the date of the retirement coverage
62.27election under this section and past salary and service credit is granted for past Minnesota
62.28State Colleges and Universities system employment from July 1, 2001, until the executive
62.29director receives the written application specified in this paragraph and receipts of the
62.30payments specified in paragraphs (c), (f), and (g). Coverage by the Teachers Retirement
62.31Association is in lieu of coverage by the individual retirement account plan.
62.32(f) If the eligible person makes the retirement coverage election under paragraph (e),
62.33the eligible person's member contributions to the higher education individual retirement
62.34account plan must be transferred to the Teachers Retirement Association, with any earned
62.35investment returns on those contributions. If the transferred member contributions and
62.36investment earnings are less than the calculated amount of the member contributions
63.1that the eligible person would have made to the Teachers Retirement Association on the
63.2eligible person's compensation from the Minnesota State Colleges and Universities system
63.3for the period from July 1, 2001, to the date of the retirement coverage election, if the
63.4person had been covered by the Teachers Retirement Association during the period, plus
63.5annual compound interest at the rate of 8.5 percent, then the eligible person shall pay the
63.6balance of that calculated member contribution obligation within 30 days of the retirement
63.7coverage election.
63.8(g) Upon the transfer of the equivalent member contribution amount and any
63.9additional payment under paragraph (f), the balance of the eligible person's higher
63.10education individual retirement account plan account must be transferred to the Teachers
63.11Retirement Association. If the amounts under paragraph (f) and the individual retirement
63.12account plan balance under this paragraph are less than the prior service credit purchase
63.13payment amount calculated under Minnesota Statutes, section 356.551, the Minnesota
63.14State Colleges and Universities system shall pay the difference within 60 days of the
63.15retirement election date.
63.16(h) The authority to make a retirement coverage election under this section expires
63.17January 1, 2017.
63.18EFFECTIVE DATE.This section is effective the day following final enactment.

63.19    Sec. 4. TRA COVERAGE FOR CERTAIN MESABI RANGE COMMUNITY
63.20AND TECHNICAL COLLEGE FACULTY MEMBERS.
63.21(a) Notwithstanding any provision of law to the contrary, an eligible person
63.22described in paragraph (b) is authorized to become a coordinated member of the Teachers
63.23Retirement Association and to purchase service and salary credit in the Teachers
63.24Retirement Association coordinated plan retroactive from July 19, 2000, or September 15,
63.252000, whichever is applicable, upon making an election under paragraph (c) and upon
63.26making all required payments under paragraphs (d) and (e).
63.27(b) An eligible person is a person who:
63.28(1) either:
63.29(i) was born on September 25, 1964, and has been employed at Mesabi Range
63.30Community and Technical College and a contributing member of the higher education
63.31individual retirement account plan since July 19, 2000; or
63.32(ii) was born on October 15, 1963, and has been employed at Mesabi Range
63.33Community and Technical College and a contributing member of the higher education
63.34individual retirement account plan since September 15, 2000;
63.35(2) was classified in the unlimited full-time category on August 21, 2012;
64.1(3) became eligible for an election of Teachers Retirement Association coverage
64.2under Laws 2009, chapter 169, article 6, section 1; and
64.3(4) was not offered an election of Teachers Retirement Association coverage by the
64.4Minnesota State Colleges and Universities System.
64.5(c) To be eligible for coverage by the Teachers Retirement Association, an eligible
64.6person must submit a written application to the executive director of the Teachers
64.7Retirement Association on a form provided by the Teachers Retirement Association. The
64.8application must include all documentation of the applicability of this section and any
64.9other relevant information that the executive director may require. Teachers Retirement
64.10Association plan membership commences after the date of the retirement coverage
64.11election under this section and past salary and service credit is granted for past Minnesota
64.12State Colleges and Universities System employment from July 19, 2000, or September 15,
64.132000, whichever is applicable, until the executive director receives the written application
64.14specified in this paragraph and receipts of the payments specified in paragraphs (d) and
64.15(e). Coverage by the Teachers Retirement Association is in lieu of coverage by the
64.16individual retirement account plan.
64.17(d) If the eligible person makes the retirement coverage election under paragraph (c),
64.18the eligible person shall make a contribution to the Teachers Retirement Association equal
64.19to the excess, if any, of the employee contributions that the eligible person would have
64.20made if the Teachers Retirement Association had provided coverage from July 19, 2000, or
64.21September 15, 2000, whichever is applicable, rather than the individual retirement account
64.22plan. These additional contribution amounts shall include 8.5 percent annual compound
64.23interest computed from the date the contribution would have been made if deducted from
64.24salary until paid. The total amount to be paid under this paragraph shall be determined by
64.25the executive director of the Teachers Retirement Association and written notification of
64.26the amount required under this paragraph must be transmitted to the eligible person.
64.27(e) If payment is made under paragraph (d), the value of the applicable eligible
64.28person's higher education individual retirement account plan account shall be transferred
64.29to the Teachers Retirement Association.
64.30(f) The Teachers Retirement Association shall determine the required purchase
64.31payment amount calculated under Minnesota Statutes, section 356.551, imposed upon
64.32the Teachers Retirement Association under this section due to the salary and service
64.33credit purchase.
64.34(g) From the total amount computed under paragraph (f), the executive director of
64.35the Teachers Retirement Association shall subtract the amounts received under paragraphs
64.36(d) and (e). The Minnesota State Colleges and Universities System must transmit the
65.1remaining amount, if any, to the executive director of the Teachers Retirement Association
65.2within 60 days following the receipt of the payments under paragraphs (d) and (e).
65.3(h) The authority to make a retirement coverage election under this section expires
65.4on January 1, 2017.
65.5EFFECTIVE DATE.This section is effective the day following final enactment.


65.8    Section 1. Minnesota Statutes 2014, section 354A.011, subdivision 29, is amended to
65.9read:
65.10    Subd. 29. Vesting; vested. (a) "Vesting" or "vested" means having entitlement to a
65.11nonforfeitable annuity or benefit from a the St. Paul Teachers Retirement Fund Association
65.12coordinated member program administered by a teachers retirement fund association by
65.13having credit for sufficient allowable service under paragraph (b) or (c), whichever applies
65.14when the teacher has accrued credit for at least three years of allowable service.
65.15    (b) For purposes of qualifying for an annuity or a benefit as a coordinated plan
65.16member of the St. Paul Teachers Retirement Fund Association, the teacher is vested when
65.17the teacher has accrued credit for at least three years of service.
65.18    (c) For purposes of qualifying for an annuity or a benefit as a coordinated plan
65.19member of the Duluth Teachers Retirement Fund Association:
65.20    (1) a teacher who first became a member of the plan before July 1, 2010, is vested
65.21when the teacher has accrued at least three years of service; and
65.22    (2) a teacher who first became a member of the plan after June 30, 2010, is vested
65.23when the teacher has accrued at least five years of service.
65.24EFFECTIVE DATE.This section is effective the day following final enactment.

65.25    Sec. 2. Minnesota Statutes 2014, section 354A.095, is amended to read:
65.26354A.095 PARENTAL AND MATERNITY LEAVE.
65.27    Basic or coordinated members of the St. Paul Teachers Retirement Fund Association
65.28and new coordinated members of the Duluth Teachers Retirement Fund Association,
65.29who are granted parental or maternity leave of absence by the employing authority, are
65.30entitled to obtain service credit not to exceed one year for the period of leave upon
65.31payment to the applicable fund by the end of the fiscal year following the fiscal year in
65.32which the leave of absence terminated. The amount of the payment must include the total
65.33required employee and employer contributions for the period of leave prescribed in section
66.1354A.12 . Payment must be based on the member's average monthly salary rate upon
66.2return to teaching service, and is payable without interest. Payment must be accompanied
66.3by a certified or otherwise adequate copy of the resolution or action of the employing
66.4authority granting or approving the leave.
66.5EFFECTIVE DATE.This section is effective the day following final enactment.

66.6    Sec. 3. Minnesota Statutes 2014, section 354A.35, subdivision 2, is amended to read:
66.7    Subd. 2. Death while eligible to retire; surviving spouse optional annuity. (a)
66.8The surviving spouse of a vested coordinated member who dies prior to retirement may
66.9elect to receive, instead of a refund with interest under subdivision 1, an annuity equal
66.10to the 100 percent joint and survivor annuity the member could have qualified for had
66.11the member terminated service on the date of death. The surviving spouse eligible for
66.12a surviving spouse benefit under this paragraph may apply for the annuity at any time
66.13after the date on which the deceased employee would have attained the required age for
66.14retirement based on the employee's allowable service. A surviving spouse eligible for
66.15surviving spouse benefits under paragraph (b) or (c) may apply for an annuity at any time
66.16after the member's death. The member's surviving spouse shall be paid a joint and survivor
66.17annuity under section 354A.32 and computed under section 354A.31.
66.18    (b) If the member was under age 55 and has credit for at least 30 years of allowable
66.19service on the date of death, the surviving spouse may elect to receive a 100 percent joint
66.20and survivor annuity based on the age of the member and surviving spouse on the date
66.21of death. The annuity is payable using the full early retirement reduction under section
66.22354A.31, subdivision 6 , paragraph (a), to age 55 and one-half of the early retirement
66.23reduction from age 55 to the age payment begins.
66.24    (c) If a vested member of the Duluth Teachers Retirement Fund Association was
66.25under age 55 on the date of death but did not yet qualify for retirement, the surviving
66.26spouse may elect to receive the 100 percent joint and survivor annuity based on the age
66.27of the member and the survivor at the time of death. The annuity is payable using the
66.28full early retirement reduction under section 354A.31, subdivision 6 or 7, to age 55 and
66.29one-half of the early retirement reduction from age 55 to the date payment begins.
66.30    (d) (c) If a vested member of the St. Paul Teachers Retirement Fund Association
66.31was under age 55 on the date of death but did not yet qualify for retirement, the surviving
66.32spouse may elect to receive the 100 percent joint and survivor annuity based on the age
66.33of the member and the survivor at the time of death. The annuity is payable using the
66.34full early retirement reduction under section 354A.31, subdivision 6 or 7, to age 55 and
66.35one-half of the actuarial equivalent reduction from age 55 to the date payment begins.
67.1The actuarial equivalent reduction is calculated so that the reduced annuity is the actuarial
67.2equivalent of the annuity that would be payable to the member if the member deferred
67.3receipt of the annuity and the annuity amount were augmented at an annual rate of 2.5
67.4percent compounded annually from the day the annuity begins to accrue until the normal
67.5retirement age.
67.6    (e) (d) Sections 354A.37, subdivision 2, and 354A.39 apply to a deferred annuity
67.7or surviving spouse benefit payable under this section. The benefits are payable for the
67.8life of the surviving spouse, or upon expiration of the term certain benefit payment under
67.9subdivision 2b.
67.10EFFECTIVE DATE.This section is effective the day following final enactment.

67.11    Sec. 4. REPEALER.
67.12(a) Minnesota Statutes 2014, sections 354A.12, subdivision 2c; 354A.31, subdivision
67.133; and 356.47, subdivision 1, are repealed.
67.14(b) Minnesota Statutes 2015 Supplement, section 354A.12, subdivision 3c, is
67.15repealed.
67.16EFFECTIVE DATE.This section is effective the day following final enactment.
"67.17Delete the title and insert:
67.19relating to retirement; making administrative changes to the Minnesota State
67.20Retirement System, Teachers Retirement Association, Public Employees
67.21Retirement Association, and St. Paul Teachers Retirement Fund Association;
67.22clarifying refund repayment procedures; modifying executive director
67.23credentials; clarifying combined service annuity augmentation rates and
67.24service requirements; revising appeal procedures; clarifying coverage for
67.25charter school administrators; modifying service credit purchase procedures;
67.26establishing new procedures for disability applications due to private disability
67.27insurance requirements; clarifying death and disability benefit payment
67.28provisions; modifying annual benefit limitations for federal tax code compliance;
67.29authorizing use of IRS correction procedures; clarifying benefit offsets for
67.30certain refund payments; clarifying police and fire plan coverage for certain
67.31Hennepin Healthcare System supervisors; modifying various economic actuarial
67.32assumptions; adopting recommendations of the volunteer firefighter relief
67.33association working group; increasing relief association lump-sum service
67.34pension maximums; lowering certain vesting requirements for Eden Prairie
67.35volunteer firefighters relief association; providing for the consolidation of the
67.36Coleraine and Bovey volunteer firefighters relief associations; modifying the
67.37MSRS disability application deadlines in certain instances; adopting definition
67.38of the hometown heroes act related to public safety officer death benefits;
67.39allowing service credit purchase and Rule of 90 eligibility for certain Minnesota
67.40Department of Transportation employees; authorizing MnSCU employees to
67.41elect retroactive and prospective TRA coverage; authorizing MnSCU employee
67.42to transfer past service from IRAP to PERA; increasing maximum employer
67.43contribution to a supplemental laborers pension fund; authorizing certain
67.44additional sources of retirement plan funding; making technical and conforming
68.1changes;amending Minnesota Statutes 2014, sections 3A.03, subdivision 3;
68.216A.14, subdivision 2a; 352.03, subdivisions 5, 6; 352.113, subdivisions 2, 4;
68.3353.01, subdivision 43; 353.32, subdivision 1; 353.34, subdivision 2; 354.05,
68.4subdivision 2, by adding a subdivision; 354.06, subdivisions 2, 2a; 354.095;
68.5354.45, by adding a subdivision; 354.46, subdivision 6; 354.48, subdivision 1;
68.6354.52, subdivisions 4, 6; 354A.011, subdivision 29; 354A.093, subdivision 4;
68.7354A.095; 354A.35, subdivision 2; 354A.38, as amended; 356.24, subdivision 1;
68.8356.30, subdivision 1; 356.635, by adding subdivisions; 356.96, subdivisions
68.91, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 423A.02, subdivision 3; 424A.01, by
68.10adding subdivisions; 424A.015, by adding a subdivision; 424B.20, subdivision
68.114; Minnesota Statutes 2015 Supplement, sections 3A.03, subdivision 2;
68.12352.23; 352B.11, subdivision 4; 352D.05, subdivision 4; 353.0162; 353.64,
68.13subdivision 10; 354.44, subdivision 9; 354A.093, subdivision 6; 354A.096;
68.14356.215, subdivision 8; 356.50, subdivision 2; 356.551, subdivision 2; 356.635,
68.15subdivision 10; 424A.02, subdivision 3; 490.124, subdivision 12; proposing
68.16coding for new law in Minnesota Statutes, chapters 356; 424A; repealing
68.17Minnesota Statutes 2014, sections 352.04, subdivision 11; 353.0161, subdivision
68.181; 353.34, subdivision 6; 354A.12, subdivision 2c; 354A.31, subdivision 3;
68.19356.47, subdivision 1; 356.611, subdivisions 3, 3a, 4, 5; 356.96, subdivisions
68.2014, 15; 424A.02, subdivision 13; Minnesota Statutes 2015 Supplement, sections
68.21353.0161, subdivisions 2, 3; 354A.12, subdivision 3c.
"