1.1.................... moves to amend H.F. No. 3281, the first committee engrossment,
1.2as follows:
1.3Page 12, line 13, delete "11.20" and insert "12.40"
1.4Page 12, line 28, delete "16.80" and insert "18.60"
1.5Page 12, delete lines 31 to 36
1.6Page 13, lines 1 and 6, reinstate the stricken language and delete the new language
1.7Page 59, line 4, delete "or" and before "retirement" insert "or 1e,"
1.8Page 59, line 33, after "plans" insert "other than the State Patrol retirement plan"
1.9Page 59, line 35, delete "the State Patrol retirement plan,"
1.10Page 60, line 15, delete "the State Patrol retirement plan,"
1.11Page 65, after line 14, insert:

1.12    "Sec. 80. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding
1.13a subdivision to read:
1.14    Subd. 1e. Annual postretirement adjustments; State Patrol retirement plan.
1.15(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
1.16retirement plan are entitled to a postretirement adjustment annually on January 1, as
1.17follows:
1.18(1) a postretirement increase of 1.5 percent must be applied each year, effective on
1.19January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
1.20has been receiving an annuity or a benefit for at least 18 full months before the January 1
1.21increase; and
1.22(2) for each annuitant or benefit recipient who has been receiving an annuity or a
1.23benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent
1.24for each month that the person has been receiving an annuity or benefit must be applied,
1.25effective January 1, following the calendar year in which the person has been retired for at
1.26least six months, but has been retired for less than 18 months.
2.1(b) The increases provided by this subdivision commence on January 1, 2011.
2.2Increases under this subdivision for the State Patrol retirement plan terminate on December
2.331 of the calendar year in which the actuarial valuation prepared by the approved actuary
2.4under sections 356.214 and 356.215 and the standards for actuarial work promulgated by
2.5the Legislative Commission on Pensions and Retirement indicates that the market value of
2.6assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability
2.7of the retirement plan and increases under subdivision 1 recommence after that date.
2.8(c) An increase in annuity or benefit payments under this subdivision must be made
2.9automatically unless written notice is filed by the annuitant or benefit recipient with the
2.10executive director of the applicable covered retirement plan requesting that the increase
2.11not be made.
2.12EFFECTIVE DATE.This section is effective the day following final enactment.

2.13    Sec. 81. Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding
2.14a subdivision to read:
2.15    Subd. 3. Actuarial valuation reports until funding is stabilized. Notwithstanding
2.16any provision of section 356.215, subdivision 8, to the contrary, until the actuarial
2.17valuations, prepared annually by the approved actuary under sections 356.214 and
2.18356.215 and the standards for actuarial work promulgated by the Legislative Commission
2.19on Pensions and Retirement, indicate that the market value of assets of the applicable
2.20covered plans equals or exceeds 90 percent of the actuarial accrued liabilities, the actuarial
2.21valuation reports must utilize a post-retirement interest rate assumption that is equal to
2.22the difference between the pre-retirement interest rate assumption provided in section
2.23356.215, subdivision 8, and the stated annual post-retirement adjustment rate provided
2.24under this section, as applicable to each covered plan.
2.25EFFECTIVE DATE.This section is effective the day following final enactment."
2.26Page 85, delete section 2
2.27Page 89, line 24, delete ", paragraph (b)"
2.28Page 145, after line 17, insert:

2.29    "Sec. 3. Laws 2006, chapter 271, article 3, section 43, as amended by Laws 2007,
2.30chapter 134, article 11, section 11, the effective date, is amended to read:
2.31EFFECTIVE DATE.(a) This section is effective the day following final enactment.
2.32    (b) This section expires on July 15, 2009.
2.33EFFECTIVE DATE.This section is effective retroactively from July 2, 2009."
3.1Page 236, after line 15, insert:

3.2    "Section 1. Minnesota Statutes 2008, section 356.216, is amended to read:
3.3356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE
3.4AND FIRE FUNDS.
3.5(a) The provisions of section 356.215 that govern the contents of actuarial valuations
3.6must apply to any local police or fire pension fund or relief association required to make
3.7an actuarial report under this section, except as follows:
3.8(1) in calculating normal cost and other requirements, if required to be expressed as
3.9a level percentage of covered payroll, the salaries used in computing covered payroll must
3.10be the maximum rate of salary on which retirement and survivorship credits and amounts
3.11of benefits are determined and from which any member contributions are calculated and
3.12deducted;
3.13(2) in lieu of the amortization date specified in section 356.215, subdivision 11,
3.14the appropriate amortization target date specified in section 69.77, subdivision 4, or
3.1569.773, subdivision 4 , clause (c), must be used in calculating any required amortization
3.16contribution, except that if the actuarial report for the Bloomington Fire Department Relief
3.17Association indicates an unfunded actuarial accrued liability, the unfunded obligation is
3.18to be amortized on a level dollar basis by December 31 of the year occurring 20 years
3.19later, and if subsequent actuarial valuations for the Bloomington Fire Department Relief
3.20Association determine a net actuarial experience loss incurred during the year which
3.21ended as of the day before the most recent actuarial valuation date, any unfunded liability
3.22due to that loss is to be amortized on a level dollar basis by December 31 of the year
3.23occurring 20 years later and except that the amortization date for the Minneapolis Police
3.24Relief Association is December 31, 2020;
3.25(3) in addition to the tabulation of active members and annuitants provided for in
3.26section 356.215, subdivision 13, the member contributions for active members for the
3.27calendar year and the prospective annual retirement annuities under the benefit plan for
3.28active members must be reported;
3.29(4) actuarial valuations required under section 69.773, subdivision 2, must be made
3.30at least every four years and actuarial valuations required under section 69.77 shall be
3.31made annually;
3.32(5) the actuarial balance sheet showing accrued assets valued at market value if the
3.33actuarial valuation is required to be prepared at least every four years or valued as current
3.34assets under section 356.215, subdivision 1, clause (6) paragraph (f), or paragraph (b),
3.35whichever applies, if the actuarial valuation is required to be prepared annually, actuarial
4.1accrued liabilities, and the unfunded actuarial accrued liability must include the following
4.2required reserves:
4.3(i) for active members:
4.41. retirement benefits;
4.52. disability benefits;
4.63. refund liability due to death or withdrawal;
4.74. survivors' benefits;
4.8(ii) for deferred annuitants' benefits;
4.9(iii) for former members without vested rights;
4.10(iv) for annuitants;
4.111. retirement annuities;
4.122. disability annuities;
4.133. surviving spouses' annuities;
4.144. surviving children's annuities;
4.15In addition to those required reserves, separate items must be shown for additional
4.16benefits, if any, which may not be appropriately included in the reserves listed above; and
4.17(6) actuarial valuations are due by the first day of the seventh month after the end of
4.18the fiscal year which the actuarial valuation covers.
4.19(b) For the Minneapolis Firefighters Relief Association or the Minneapolis Police
4.20Relief Association, the following provisions additionally apply:
4.21(1) in calculating the actuarial balance sheet, unfunded actuarial accrued liability,
4.22and amortization contribution of the relief association, "current assets" means the value of
4.23all assets at cost, including realized capital gains and losses, plus or minus, whichever
4.24applies, the average value of total unrealized capital gains or losses for the most recent
4.25three-year period ending with the end of the plan year immediately preceding the actuarial
4.26valuation report transmission date; and
4.27(2) in calculating the applicable portions of the actuarial valuation, an annual
4.28preretirement interest assumption of six percent, an annual postretirement interest
4.29assumption of six percent, and an annual salary increase assumption of four percent must
4.30be used.
4.31EFFECTIVE DATE.This section is effective the day following final enactment."
4.32Page 238, after line 24, insert:

4.33    "Sec. 3. Laws 2009, chapter 169, article 7, section 4, is amended to read:
4.34    Sec. 4. EFFECTIVE DATE.
5.1Sections 1 to 3 are effective January 1, 2010, and. Sections 1 and 2 expire June
5.230, 2011.
5.3EFFECTIVE DATE.This section is effective the day following final enactment."
5.4Renumber the sections in sequence and correct the internal references
5.5Amend the title accordingly