1.1    .................... moves to amend H. F. No. 163 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. [353.95] ACCOUNT FOR DULUTH POSTEMPLOYMENT
1.4BENEFITS.
1.5    Subdivision 1. Establishment. The Public Employees Retirement Association must
1.6establish an irrevocable fund for the city of Duluth to be used only to fund and pay for
1.7the postemployment benefits owed to retired employees in accordance with language
1.8contained in labor agreements between the city and its employee bargaining units, or
1.9between participating subgroups in the city's health plan and their retirees.
1.10    Subd. 2. Definition. For purposes of this section, "postemployment benefit" means
1.11a benefit giving rise to a liability under Statement 45 of the Governmental Accounting
1.12Standards Board, and therefore does not include benefits to be paid by a Minnesota public
1.13pension plan listed in section 356.20, subdivision 2, or section 356.30, subdivision 3, and
1.14benefits provided on a defined contribution individual account basis.
1.15    Subd. 3. Account maintenance and investment. (a) The city may establish an
1.16account in the fund created in this section. The Public Employees Retirement Association
1.17may charge the city fees for reasonable administrative costs, and the amount of those fees
1.18is appropriated to the association from the account. The Public Employees Retirement
1.19Association may establish other terms and conditions for participation in the fund.
1.20    (b) The Public Employees Retirement Association must certify all money in the
1.21fund to the State Board of Investment for investment in the combined investment funds
1.22established in section 11A.14, subject to the policies and procedures established by the
1.23State Board of Investment. Investment earnings must be credited to the account of the city.
1.24    Subd. 4. Management and termination of account. The city may deposit and
1.25withdraw money as needed for postemployment benefits owed on behalf of retired
1.26employees of the city or its subgroups. Such transactions must be at a time and in a manner
2.1required by the executive director of the Public Employees Retirement Association. The
2.2executive director must ensure that withdrawals comply with the requirements of this
2.3section. The account may be terminated only to the extent the city's postemployment
2.4benefit actuarial liability is satisfied or otherwise defeased.
2.5    Subd. 5. Status of irrevocable fund. (a) All monies in the irrevocable fund created
2.6in this section are held in trust for the exclusive benefit of retired employees of the city
2.7or subgroups participating in the city's health plan, and are not subject to claims by
2.8creditors of the state, the city, the city's subgroups, or the current and former employees of
2.9the city or its subgroups.
2.10    (b) The irrevocable fund created in this section shall be deemed an arrangement
2.11equivalent to a trust for all legal purposes.

2.12    Sec. 2. [353.96] ACCOUNT FOR INVESTMENT OF CERTAIN DULUTH
2.13FUNDS OR ASSETS.
2.14    Subdivision 1. Establishment. The State Board of Investment, when requested by
2.15the city, may invest the funds or assets of the city's community investment trust fund in
2.16the combined investment funds established in section 11A.14, subject to the policies and
2.17procedures established by the State Board of Investment. Use of such funds is restricted
2.18to debt service payments for the city's street improvement program, or any other use
2.19approved in accordance with Section 54(E) of the home rule charter of the city of Duluth.
2.20    Subd. 2. Account maintenance and investment. The city may deposit and
2.21withdraw money for purposes approved by the Duluth City Council in accordance with
2.22Section 54(E) of the home rule charter of the city of Duluth. Such transactions must be in
2.23a time and manner required by the executive director of the State Board of Investments.
2.24Investments earnings must be credited to the account of the city. The account may be
2.25terminated by the city at any time.
2.26EFFECTIVE DATE.This section is effective the day following final enactment."
2.27Delete the title and insert:
2.29relating to local government; authorizing the city of Duluth to establish accounts
2.30to pay for postemployment benefits owed to retired employees and to generate
2.31revenue dedicated to meet certain city obligations;proposing coding for new law
2.32in Minnesota Statutes, chapter 353."