MN HF2951

Adjusts employee contribution rates for teachers retirement funds: Duluth at 5.5 percent; St. Paul basic program at 8 percent; St. Paul coordinated program at 5.5 percent before July 1, 2011 with a blank percentage after that date.

Sets employer contribution rates for first class city teachers retirement funds: Duluth at 4.50 percent for coordinated members; St. Paul at 4.50 percent before July 1, 2011 with additional contributions of 3.64 percent for basic members and 1.29-3.84 percent for coordinated members.

Provides direct state aid to teachers retirement funds: $346,000 to Duluth; $8,000,000 to St. Paul; $12,954,000 to the Teachers Retirement Association (formerly Minneapolis), payable October 1 annually.

Modifies St. Paul Teachers Retirement Fund Association's coordinated retirement annuity formulas, establishing different percentage rates for service rendered before and after July 1, 2011, with special provisions for members age 55 or older.

Enhances pension plan fiduciary and investment requirements including adoption of investment policies, diversification standards, prohibited self-dealing, and asset management standards consistent with the prudent person rule; requires annual reporting to the Legislative Commission on Pensions and Retirement.