1.1.................... moves to amend S.F. No. 2620; H.F. No. 3053, as follows:
1.2Page 2, line 49, delete "AND CONTRIBUTION"
1.3Page 6, line 26, delete "2017"and insert "2018"
1.4Page 8, line 23, delete "AND CONTRIBUTION"
1.5Page 12, line 9, delete "AND CONTRIBUTION"
1.6Page 19, line 27, delete "AND CONTRIBUTION"
1.7Page 20, line 22, delete "The amount determined under paragraph (a), clause (2), is the
1.8full" and insert "A"
1.9Page 20, line 23, after "adjustment" insert "is"
1.10Page 20, line 24, delete "of the next calendar year"
1.11Page 20, line 25, before "calendar" insert "immediately preceding" and delete everything
1.12after "year"
1.13Page 20, line 26, delete everything before the comma and delete "determined under
1.14paragraph" and insert "of the postretirement adjustment"
1.15Page 20, line 27, delete everything before "must"
1.16Page 21, after line 1, insert:

1.17    "Sec. 3. Minnesota Statutes 2016, section 354A.31, subdivision 5, is amended to read:
1.18    Subd. 5. Unreduced normal retirement annuity. Upon retirement at normal retirement
1.19age, a vested coordinated member is entitled to a normal retirement annuity calculated under
1.20subdivision 4 or 4a, whichever applies.

1.21    Sec. 4. Minnesota Statutes 2016, section 354A.31, subdivision 6, is amended to read:
1.22    Subd. 6. Reduced retirement annuity. This subdivision applies only to a person who
1.23first became a coordinated member or a member of a pension fund listed in section 356.30,
1.24subdivision 3 , before July 1, 1989, and whose annuity is higher when calculated using the
1.25retirement annuity formula percentage in subdivision 4, paragraph (c), or subdivision 4a,
1.26paragraph (c), in conjunction with this subdivision than when calculated under subdivision
1.274, paragraph (d), or subdivision 4a, paragraph (d), in conjunction with subdivision 7.
1.28(a) Upon retirement at an age before normal retirement age or prior to age 62 with at
1.29least 30 years of service credit, a vested coordinated member shall be entitled to a retirement
1.30annuity in an amount equal to the normal retirement annuity calculated using the retirement
2.1annuity formula percentage in subdivision 4, paragraph (c), or subdivision 4a, paragraph
2.2(c), reduced by one-quarter of one percent for each month that the coordinated member is
2.3under normal retirement age if the coordinated member has less than 30 years of service
2.4credit or is under the age of 62 if the coordinated member has at least 30 years of service
2.5credit.
2.6(b) Any coordinated member whose attained age plus credited allowable service totals
2.790 years is entitled, upon application, to a retirement annuity in an amount equal to the
2.8normal retirement annuity calculated using the retirement annuity formula percentage in
2.9subdivision 4, paragraph (c), or subdivision 4a, paragraph (c), without any reduction by
2.10reason of early retirement."
2.11Page 21, line 7, strike "or subdivision 4a, paragraph (d), as applicable,"
2.12Page 21, line 8, strike "or subdivision"
2.13Page 21, line 9, strike "4a, paragraph (c),"
2.14Page 21, line 15, strike "or subdivision 4a, paragraph"
2.15Page 21, line 16, strike "(d), whichever applies,"
2.16Page 22, lines 3 to 4, delete "or subdivision 4a, paragraph (c), whichever applies, "
2.17Page 22, lines 9 to 10, delete "or subdivision 4a, paragraph (d), whichever applies, "
2.18Page 25, delete section 1 and insert:

2.19    "Section 1. Minnesota Statutes 2017 Supplement, section 356.215, subdivision 8, is
2.20amended to read:
2.21    Subd. 8. Interest and salary Actuarial assumptions. (a) The actuarial valuation must
2.22use the applicable following interest investment return assumption:
2.23(1) select and ultimate interest rate assumption
2.24
2.25
 plan
 ultimate interest rate
assumption
2.26
 teachers retirement plan
 8.5%
2.27The select preretirement interest rate assumption for the period through June 30, 2017,
2.28is eight percent.
2.29(2) single rate interest rate assumption
2.30
2.31
2.32
 plan
 interest rate
investment return
assumption
2.33
 general state employees retirement plan
 8 7.5%
3.1
 correctional state employees retirement plan
 8 7.5
3.2
 State Patrol retirement plan
 8 7.5
3.3
3.4
3.5
 legislators retirement plan, and for the
constitutional officers calculation of total plan
liabilities
 0
3.6
 judges retirement plan
 8 7.5
3.7
 general public employees retirement plan
 8 7.5
3.8
 public employees police and fire retirement plan
 8 7.5
3.9
3.10
 local government correctional service retirement
plan
 8 7.5
3.11
 teachers retirement plan
 7.5
3.12
 St. Paul teachers retirement plan
 8 7.5
3.13
 Bloomington Fire Department Relief Association
 6
3.14
3.15
 local monthly benefit volunteer firefighter relief
associations
 5
3.16
3.17
 monthly benefit retirement plans in the statewide
volunteer firefighter retirement plan
 6
3.18(b)(1) If funding stability has been attained, The actuarial valuation for each of the
3.19covered retirement plans listed in section 356.415, subdivision 2, must use a take into account
3.20the postretirement adjustment rate actuarial assumption equal to the postretirement adjustment
3.21rate or rates applicable to the plan as specified in section 354A.29, subdivision 9 7, or
3.22356.415, subdivision 1, whichever applies.
3.23(2) If funding stability has not been attained, the valuation must use a select postretirement
3.24adjustment rate actuarial assumption equal to the postretirement adjustment rate specified
3.25in section 354A.29, subdivision 8, or 356.415, subdivision 1a, 1b, 1c, 1d, 1e, or 1f, whichever
3.26applies, for a period ending when the approved actuary estimates that the plan will attain
3.27the defined funding stability measure, and thereafter an ultimate postretirement adjustment
3.28rate actuarial assumption equal to the postretirement adjustment rate under section 354A.29,
3.29subdivision 9, or 356.415, subdivision 1, for the applicable period or periods beginning
3.30when funding stability is projected to be attained.
3.31    (c) The actuarial valuation must use the applicable following single rate future salary
3.32increase assumption, the applicable following modified single rate age-related future salary
3.33increase assumption, or the applicable following graded rate service-related future salary
3.34increase assumption:
3.35    (1) single rate future salary increase assumption
3.36
 plan
 future salary increase assumption
3.37
 legislators retirement plan
 5%
4.1
 judges retirement plan
 2.75 2.5
4.2
 Bloomington Fire Department Relief Association
 4
4.3    (2) age-related future salary increase age-related select and ultimate future salary increase
4.4assumption or graded rate future salary increase assumption
4.5
 plan
 future salary increase assumption
4.6
 local government correctional service retirement plan
 assumption B
4.7
 St. Paul teachers retirement plan
 assumption A
4.8For plans other than the St. Paul teachers
4.9retirement plan and the local government
4.10correctional service retirement plan, the select
4.11calculation is: during the designated select
4.12period, a designated percentage rate is
4.13multiplied by the result of the designated
4.14integer minus T, where T is the number of
4.15completed years of service, and is added to
4.16the applicable future salary increase
4.17assumption. The designated select period is
4.18ten years and the designated integer is ten for
4.19the local government correctional service
4.20retirement plan and 15 for the St. Paul
4.21Teachers Retirement Fund Association. The
4.22designated percentage rate is 0.2 percent for
4.23the St. Paul Teachers Retirement Fund
4.24Association.
4.25    The ultimate future salary increase assumption is:
4.26
4.27
4.28
 age
 A
 B local government
correctional service
retirement plan
4.29
 16
 5.9%
 8.75%
4.30
 17
 5.9
 8.75
4.31
 18
 5.9
 8.75
4.32
 19
 5.9
 8.75
4.33
 20
 5.9
 8.75 8.5%
4.34
 21
 5.9
 8.5 8.25
4.35
 22
 5.9
 8.25 8
4.36
 23
 5.85
 8 7.75
5.1
 24
 5.8
 7.75 7.5
5.2
 25
 5.75
 7.5 7.25
5.3
 26
 5.7
 7.25 7
5.4
 27
 5.65
 7 6.75
5.5
 28
 5.6
 6.75 6.5
5.6
 29
 5.55
 6.5 6.25
5.7
 30
 5.5
 6.5 6.25
5.8
 31
 5.45
 6.25 6
5.9
 32
 5.4
 6.25 6
5.10
 33
 5.35
 6.25 6
5.11
 34
 5.3
 6 5.75
5.12
 35
 5.25
 6 5.75
5.13
 36
 5.2
 5.75 5.5
5.14
 37
 5.15
 5.75 5.5
5.15
 38
 5.1
 5.75 5.5
5.16
 39
 5.05
 5.5 5.25
5.17
 40
 5
 5.5 5.25
5.18
 41
 4.95
 5.5 5.25
5.19
 42
 4.9
 5.25 5
5.20
 43
 4.85
 5 4.75
5.21
 44
 4.8
 5 4.75
5.22
 45
 4.75
 4.75 4.5
5.23
 46
 4.7
 4.75 4.5
5.24
 47
 4.65
 4.75 4.5
5.25
 48
 4.6
 4.75 4.5
5.26
 49
 4.55
 4.75 4.5
5.27
 50
 4.5
 4.75 4.5
5.28
 51
 4.45
 4.75 4.5
5.29
 52
 4.4
 4.75 4.5
5.30
 53
 4.35
 4.75 4.5
5.31
 54
 4.3
 4.75 4.5
5.32
 55
 4.25
 4.5 4.25
5.33
 56
 4.2
 4.5 4.25
5.34
 57
 4.15
 4.25 4
5.35
 58
 4.1
 4 3.75
5.36
 59
 4.05
 4 3.75
5.37
 60
 4
 4 3.75
5.38
 61
 4
 4 3.75
6.1
 62
 4
 4 3.75
6.2
 63
 4
 4 3.75
6.3
 64
 4
 4 3.75
6.4
 65 and older
 4
 3.75 3.5
6.5
 66
 4
 3.75
6.6
 67
 4
 3.75
6.7
 68
 4
 3.75
6.8
 69
 4
 3.75
6.9
 70
 4
 3.75
6.10(3) service-related ultimate future salary increase assumption
6.11
6.12
 general state employees retirement plan of the Minnesota
State Retirement System
 assumption A
6.13
6.14
 general employees retirement plan of the Public
Employees Retirement Association
 assumption B
6.15
6.16
 Teachers Retirement Association, fiscal year 2018 to
fiscal year 2027
 assumption C
6.17
6.18
 Teachers Retirement Association, fiscal years 2028 and
beyond
 assumption D
6.19
 St. Paul Teachers Retirement Fund Association,
 assumption E
6.20
 public employees police and fire retirement plan
 assumption D F
6.21
 State Patrol retirement plan
 assumption E G
6.22
6.23
 correctional state employees retirement plan of the
Minnesota State Retirement System
 assumption F H
6.24
6.25
 service
length
 A
 B
 C
 D
 E
 D F
 E G
 F H
6.26
6.27
 1
 10.25
13.75%
 11.78
11.25%
 12 8.85%
 9.25%
 9
 12.75
12.25%
 7.75
15.25%
 5.75
12.25%
6.28
6.29
 2
 7.85
11.25
 8.65 8.25
 9 7.10
 7.5
 8
 10.75
10.5
 7.25 9.25
 5.6 8.75
6.30
 3
 6.65 6
 7.21 6.75
 8 6.60
 7
 7
 8.75
 6.75 7.75
 5.45 5.75
6.31
 4
 5.95 5.25
 6.33 5.75
 7.5 6.35
 6.75
 6.8
 7.75
 6.5 7.25
 5.3 5.25
6.32
 5
 5.45 5
 5.72 5.25
 7.25 6.35
 6.75
 6.6
 6.25
 6.25 6.75
 5.15 5
6.33
 6
 5.05 4.9
 5.27 4.95
 7 6.2
 6.6
 6.4
 5.85 5.75
 6 6.25
 5 4.75
6.34
 7
 4.75 4.75
 4.91 4.65
 6.85 6.05
 6.45
 6.2
 5.55 5.25
 5.75 6
 4.85 4.75
6.35
 8
 4.45 4.5
 4.62 4.55
 6.7 5.9
 6.3
 6
 5.35 5
 5.6 5.75
 4.7 4.75
6.36
 9
 4.25 4.25
 4.38 4.45
 6.55 5.75
 6.15
 5.75
 5.15 4.75
 5.45 5.5
 4.55 4.75
6.37
 10
 4.15 4
 4.17 4.25
 6.4 5.6
 6
 5.5
 5.05 4.5
 5.3 5.25
 4.4 4.75
6.38
 11
 3.95 3.95
 3.99 4
 6.25 5.35
 5.75
 5.25
 4.95 4.25
 5.15 5
 4.3 4.75
6.39
 12
 3.85 3.9
 3.83 3.85
 6 5.1
 5.5
 5
 4.85 4.15
 5 4.75
 4.2 4.5
6.40
 13
 3.75 3.85
 3.69 3.75
 5.75 4.85
 5.25
 4.75
 4.75 4.05
 4.85 4.5
 4.1 4.25
7.1
 14
 3.55 3.8
 3.57 3.65
 5.5 4.6
 5
 4.5
 4.65 3.95
 4.7 4.25
 4 4.25
7.2
 15
 3.45 3.75
 3.45 3.65
 5.25 4.35
 4.75
 4.25
 4.55 3.85
 4.55 4.25
 3.9 4
7.3
 16
 3.35 3.7
 3.35 3.6
 5 4.1
 4.5
 4
 4.55 3.75
 4.4 4.25
 3.8 4
7.4
 17
 3.25 3.65
 3.26 3.55
 4.75 3.85
 4.25
 3.9
 4.55 3.75
 4.25 4
 3.7 4
7.5
 18
 3.25 3.6
 3.25 3.5
 4.5 3.65
 4.05
 3.8
 4.55 3.75
 4.1 4
 3.6 3.75
7.6
 19
 3.25 3.55
 3.25 3.5
 4.25 3.55
 3.95
 3.7
 4.55 3.75
 3.95 3.75
 3.5 3.75
7.7
 20
 3.25 3.5
 3.25 3.5
 4 3.45
 3.85
 3.6
 4.55 3.75
 3.8 3.75
 3.5 3.75
7.8
 21
 3.25 3.45
 3.25 3.5
 3.9 3.35
 3.75
 3.4
 4.45 3.65
 3.75 3.65
 3.5 3.5
7.9
 22
 3.25 3.4
 3.25 3.45
 3.8 3.25
 3.65
 3.2
 4.35 3.55
 3.75 3.55
 3.5 3.5
7.10
 23
 3.25 3.35
 3.25 3.35
 3.7 3.15
 3.55
 3
 4.25 3.45
 3.75 3.45
 3.5 3.5
7.11
 24
 3.25 3.3
 3.25 3.35
 3.6 3.05
 3.45
 3
 4.25 3.35
 3.75 3.35
 3.5 3.25
7.12
 25
 3.25 3.25
 3.25 3.35
 3.5 2.95
 3.35
 3
 4.25 3.25
 3.75 3.25
 3.5 3.25
7.13
 26
 3.25
 3.25
 3.5 2.85
 3.25
 3
 4.25 3.25
 3.75 3.25
 3.5 3.25
7.14
 27
 3.25
 3.25
 3.5 2.85
 3.25
 3
 4.25 3.25
 3.75 3.25
 3.5 3.25
7.15
 28
 3.25
 3.25
 3.5 2.85
 3.25
 3
 4.25 3.25
 3.75 3.25
 3.5 3.25
7.16
 29
 3.25
 3.25
 3.5 2.85
 3.25
 3
 4.25 3.25
 3.75 3.25
 3.5 3.25
7.17
7.18
 30 or
more
 3.25
 3.25
 3.5 2.85
 3.25
 3
 4.25 3.25
 3.75 3.25
 3.5 3.25
7.19    (d) The actuarial valuation must use the applicable following payroll growth assumption
7.20for calculating the amortization requirement for the unfunded actuarial accrued liability
7.21where the amortization retirement is calculated as a level percentage of an increasing payroll:
7.22
 plan
 payroll growth assumption
7.23
7.24
 general state employees retirement plan of the Minnesota
State Retirement System
 3.5 3.25%
7.25
 correctional state employees retirement plan
 3.5 3.25
7.26
 State Patrol retirement plan
 3.5 3.25
7.27
 judges retirement plan
 2.75 2.5
7.28
7.29
 general employees retirement plan of the Public
Employees Retirement Association
 3.5 3.25
7.30
 public employees police and fire retirement plan
 3.5 3.25
7.31
 local government correctional service retirement plan
 3.5 3.25
7.32
 teachers retirement plan
 3.75 3
7.33
 St. Paul teachers retirement plan
 4 3
7.34    (e) The assumptions set forth in paragraphs (c) and (d) continue to apply, unless a
7.35different salary assumption or a different payroll increase assumption:
7.36    (1) has been proposed by the governing board of the applicable retirement plan;
8.1    (2) is accompanied by the concurring recommendation of the actuary retained under
8.2section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most
8.3recent actuarial valuation report if section 356.214 does not apply; and
8.4    (3) has been approved or deemed approved under subdivision 18.
8.5EFFECTIVE DATE.This section is effective July 1, 2018, and applies to actuarial
8.6valuations prepared on or after that date."
8.7Page 34, line 3, delete "has"
8.8Page 36, line 16, delete "()" and insert "(a)"
8.9Page 62, line 29, delete "a" and insert "another"
8.10Page 76, line 19, strike "a" and insert "the applicable" and strike "of 0.71 percent" and
8.11insert "or rates specified in section 356.59, subdivision 4,"
8.12Page 76, line 24, delete "annual" and insert "monthly"
8.13Page 98, line 32, reinstate the stricken language
8.14Page 98, line 33, reinstate the first stricken "the" and reinstate "Teachers Retirement"
8.15and reinstate "Association" and after "association's" insert "satisfies subdivision 5,"
8.16Page 99, line 1, reinstate the stricken language and delete the new language
8.17Page 99, line 2, delete the new language
8.18Page 99, line 13, delete "(a)"
8.19Page 99, line 14, after "as" insert "continue until the earlier" and reinstate " of" and delete
8.20"for the St. Paul Teachers" and insert a colon
8.21Page 99, delete line 15
8.22Page 99, line 17, reinstate the stricken language
8.23Page 99, line 18, reinstate "Association" and delete "fund" and insert "or the Teachers
8.24Retirement Association"
8.25Page 99, delete lines 24 to 30
8.26Page 100, after line 27, insert:

8.27    "Sec. 10. REPEALER.
8.28Laws 2008, chapter 349, article 8, section 4, is repealed."
8.29Page 130, line 6, strike everything after "(a)" and insert "If a member who is receiving"
9.1Page 130, line 7, strike everything after "from"
9.2Page 130, strike lines 8 to 9
9.3Page 130, lines 10 and 11, strike the old language and delete the new language
9.4Page 130, line 12, strike "of" and insert "a retirement plan administered by the association
9.5is employed by (1)" and strike "subdivision" and insert "employer" and before "position"
9.6insert "nonelected" and delete "a member of" and insert "covered by"
9.7Page 130, line 14, strike "returns to work as"
9.8Page 130, line 15, strike "an employee of" and insert "(2) by"
9.9Page 130, line 16, after "and" insert "the member's" and strike "for the reemployment
9.10service"
9.11Page 130, line 17, after "maximum" insert "salary defined in paragraph (b), the annuity
9.12shall be suspended under subdivision 2 or reduced under subdivision 3, whichever results
9.13in the higher annuity amount. (b) The annual maximum salary means the annual maximum"
9.14and strike "for that" and insert "at the member's"
9.15Page 130, line 20, strike "any" and insert "effect for the" and strike "person" and insert
9.16"member"
9.17Page 130, line 21, strike "for the person is equal to" and insert "means"
9.18Page 130, line 23, strike "(b)" and insert "(c)"
9.19Page 136, line 3, delete "2016" and insert "2018"
9.20Page 136, line 10, delete "2017" and insert "2018"
9.21Page 140, line 27, delete "retroactively from" and delete "2016" and insert "2018"
9.22Page 145, after line 13, insert:

9.23    "Sec. 2. Minnesota Statutes 2016, section 354A.36, subdivision 4, is amended to read:
9.24    Subd. 4. Determination of disability. (a) The board of the teachers retirement fund
9.25association shall make the final determination of the existence of a permanent and total
9.26disability. The board shall have the coordinated member examined by at least two licensed
9.27physicians, licensed chiropractors, or licensed psychologists who are selected by the board.
9.28After making any required examinations, each physician, chiropractor, or psychologist with
9.29respect to a mental impairment, shall make a written report to the board concerning the
9.30coordinated member, which shall include a statement of the expert opinion of the physician,
9.31chiropractor, or psychologist as to whether or not the member is permanently and totally
10.1disabled within the meaning of section 354A.011, subdivision 14. The board shall also
10.2obtain a written statement from the employer as to whether or not the coordinated member
10.3was terminated or separated from active employment due to a disability which is deemed
10.4by the employer to reasonably prevent further service by the member to the employer and
10.5which caused the coordinated member not to be entitled to further compensation from the
10.6employer for services rendered by the member. If, after consideration of the reports of the
10.7physicians, chiropractors, or psychologists with respect to a mental impairment, and any
10.8evidence presented by the member or by any other interested parties, the board determines
10.9that the coordinated member is totally and permanently disabled within the meaning of
10.10section 354A.011, subdivision 14, it shall grant the coordinated member a disability benefit.
10.11A member who is placed on a leave of absence without compensation as a result of the
10.12disability is not barred from receiving a disability benefit under this section.
10.13(b) The executive director shall reject an application for disability benefits under section
10.14354A.36 if the member is applying only because an employer-sponsored provider of private
10.15disability insurance benefits requires the application and the member would not have applied
10.16for disability benefits in the absence of the requirement. The member shall submit a copy
10.17of the disability insurance policy that requires an application for disability benefits from
10.18the plan if the member wishes to assert that the application is only being submitted because
10.19of the disability insurance policy requirement.
10.20EFFECTIVE DATE.This section is effective the day following final enactment."
10.21Page 151, line 28, before the period, insert "no later than 60 days after the date of the
10.22written notice of the staff decision"
10.23Page 159, delete article 14
10.24Renumber the articles and sections in sequence and correct the internal references
10.25Amend the title accordingly