1.1 	A bill for an act
1.2 	relating to retirement; accelerating the effective date from July 1, 2025, to July 1, 
1.3 	2024, for the change in the normal retirement age for the teachers retirement 
1.4 	association from 66 to 65; reducing the employee contribution rates for two years 
1.5 	by 0.25 percent for St. Paul Teachers Retirement Fund Association; extending the 
1.6 	suspension of earnings limitation for retired teachers who return to teaching; 
1.7 	authorizing eligible employees of Minnesota State Colleges and Universities who 
1.8 	are members of the higher education individual retirement account plan to elect 
1.9 	coverage by the Teachers Retirement Association and purchase past service credit; 
1.10 	implementing the recommendations of the State Auditor's volunteer firefighter 
1.11 	working group; adding a defined contribution plan and making other changes to 
1.12 	the statewide volunteer firefighter plan; modifying requirements for electing to 
1.13 	participate in the public employees defined contribution plan; increasing the 
1.14 	multiplier in the benefit formula for prospective service and increasing employee 
1.15 	and employer contribution rates for the local government correctional service 
1.16 	retirement plan; eliminating the workers' compensation offset for the Public 
1.17 	Employees Retirement Association general and correctional plans; clarifying 
1.18 	eligibility for firefighters in the public employees police and fire plan; making 
1.19 	changes of an administrative nature for plans administered by the Minnesota State 
1.20 	Retirement System; authorizing employees on a H-1B, H-1B1, or E3 visa to 
1.21 	purchase service credit for a prior period of employment when excluded from the 
1.22 	general state employees retirement plan; codifying the right to return to employment 
1.23 	and continue receiving an annuity from the State Patrol plan; adding additional 
1.24 	positions to the list of positions eligible for the correctional state employees 
1.25 	retirement plan coverage and permitting the purchase of past service credit; 
1.26 	establishing a work group on correctional state employees plan eligibility; 
1.27 	modifying the Minnesota Secure Choice retirement program by permitting 
1.28 	participation by home and community-based services employees; modifying 
1.29 	requirements for Minnesota Secure Choice retirement program board of directors; 
1.30 	allowing employer matching contributions on an employee's qualified student loan 
1.31 	payments under Secure 2.0 and modifying investment rates of return and fee 
1.32 	disclosure requirements and other provisions for supplemental deferred 
1.33 	compensation plans; resolving a conflict in the statute setting the plans' established 
1.34 	date for full funding and establishing an amortization work group; restructuring 
1.35 	statutes applicable to tax-qualified pension and retirement plans that impose 
1.36 	requirements under the Internal Revenue Code; modifying the authority of pension 
1.37 	fund executive directors to correct operational and other errors and requiring an 
1.38 	annual report; changing the expiration date for state aids by requiring three years 
2.1 	at 100 percent funded rather than one year before the state aid expires; making 
2.2 	other administrative and conforming changes; appropriating money to the IRAP 
2.3 	to TRA transfer account, the Teachers Retirement Association, and St. Paul 
2.4 	Teachers Retirement Association; amending Minnesota Statutes 2022, sections 
2.5 	352.01, subdivision 13; 352.03, subdivision 5; 352.113, subdivision 1; 352.1155, 
2.6 	subdivision 3; 352.12, subdivisions 1, 2, 2b, 7, 8; 352.95, subdivision 4; 353.028, 
2.7 	subdivisions 1, 2, 3, 5; 353.03, subdivision 3a; 353.27, subdivision 4; 353.33, 
2.8 	subdivisions 7, 7a; 353.64, subdivisions 1, 2, 4, 5a; 353.65, subdivision 3b; 353.87, 
2.9 	subdivision 1; 353D.02, as amended; 353E.03; 353E.04, subdivision 3; 353E.06, 
2.10 	subdivision 6; 353G.01, subdivisions 9, 9a, 11, by adding subdivisions; 353G.05, 
2.11 	as amended; 353G.08, subdivision 2; 354.435, subdivision 4; 354.436, subdivision 
2.12 	3; 354A.011, subdivision 7; 354A.021, subdivisions 2, 3, 6, 7, 8, 9; 354A.05; 
2.13 	354A.091; 354A.094; 354A.12, subdivisions 3a, 3c, 5; 354A.31, subdivision 3a; 
2.14 	354A.32, subdivision 1a; 354B.20, subdivision 18, by adding subdivisions; 356.215, 
2.15 	subdivisions 2, 3; 356.24, subdivision 3; 356.611, subdivision 2, by adding a 
2.16 	subdivision; 356.62; 356.635, subdivisions 1, 2, by adding subdivisions; 356A.06, 
2.17 	subdivision 5; 423A.02, subdivision 5; 423A.022, subdivision 5; 424A.001, 
2.18 	subdivisions 4, 5, 8, 9, 10, by adding subdivisions; 424A.003; 424A.01, 
2.19 	subdivisions 1, 2, 5; 424A.015, subdivisions 1, 5, 7; 424A.016, subdivisions 2, 6; 
2.20 	424A.02, subdivisions 1, 3, 7, 9; 424A.021; 424A.092, subdivision 6; 424A.093, 
2.21 	subdivision 6; 424A.094, subdivision 1; 424A.095, subdivision 2; 424A.10; 
2.22 	424B.22, subdivisions 2, 10; Minnesota Statutes 2023 Supplement, sections 187.03, 
2.23 	by adding a subdivision; 187.05, subdivision 7; 187.08, subdivisions 1, 7, 8; 352.91, 
2.24 	subdivision 3f, as amended; 353.335, subdivision 1; 353D.01, subdivision 2; 
2.25 	353G.01, subdivisions 7b, 8b, 12, 12a, 14a, 15; 353G.02, subdivisions 1, 3, 4; 
2.26 	353G.03, subdivision 3; 353G.07; 353G.08, subdivision 1; 353G.09, subdivisions 
2.27 	1, 1a, 2; 353G.10; 353G.11, subdivision 2, by adding a subdivision; 353G.115; 
2.28 	353G.12, subdivision 2, by adding a subdivision; 353G.14; 354.05, subdivision 
2.29 	38; 354.06, subdivision 2; 354A.12, subdivision 1; 356.215, subdivision 11; 356.24, 
2.30 	subdivision 1; 477B.02, subdivision 3; Laws 2021, chapter 22, article 2, section 
2.31 	3; Laws 2022, chapter 65, article 3, section 1, subdivisions 2, 3; Laws 2023, chapter 
2.32 	46, section 11; proposing coding for new law in Minnesota Statutes, chapters 352B; 
2.33 	353G; 354B; 356; repealing Minnesota Statutes 2022, sections 353.33, subdivision 
2.34 	5; 353.86; 353.87, subdivisions 2, 3, 4; 353D.071; 353G.01, subdivision 10; 
2.35 	356.635, subdivisions 3, 4, 5, 6, 7, 8, 9a, 10, 11, 12, 13; 424A.01, subdivision 5a; 
2.36 	Minnesota Statutes 2023 Supplement, sections 353.335, subdivision 2; 353G.01, 
2.37 	subdivisions 7a, 8a; 353G.02, subdivision 6; 353G.08, subdivision 3; 353G.11, 
2.38 	subdivisions 1, 1a, 3, 4; 353G.112; 353G.121.
2.39 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.40 	ARTICLE 1
2.41 	TEACHER PENSIONS

2.42 	Section 1. Minnesota Statutes 2023 Supplement, section 354.05, subdivision 38, is amended 
2.43 	to read:
2.44 		Subd. 38.Normal retirement age. "Normal retirement age" means age 65 for a person 
2.45 	who first became a member of the association or a member of a pension fund listed in section 
2.46 	356.30, subdivision 3, before July 1, 1989. Through June 30, 2025 2024, for a person who 
2.47 	first becomes a member of the association after June 30, 1989, normal retirement age means 
2.48 	the higher of age 65 or "retirement age," as defined in United States Code, title 42, section 
3.1 	416(l), as amended, but not to exceed age 66. Beginning July 1, 2025 2024, normal retirement 
3.2 	age for all members means age 65.

3.3 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2023.

3.4 	Sec. 2. Minnesota Statutes 2023 Supplement, section 354A.12, subdivision 1, is amended 
3.5 	to read:
3.6 		Subdivision 1.Employee contributions. (a) The contribution required to be paid by 
3.7 	each member is the percentage of total salary specified below for the applicable program:

3.8		Program
	Percentage of Total Salary
	
3.9		basic program after June 30, 2016, through June 30, 2023
		10 percent
	
3.10		basic program after June 30, 2023, through June 30, 2025 2024
		10.25 percent
	
3.11		basic program after June 30, 2024, through June 30, 2025
		10
	
3.12		basic program after June 30, 2025, through June 30, 2026
		11.25
	
3.13		basic program after June 30, 2025 2026
		11.5 percent
	
3.14
3.15		coordinated program after June 30, 2016, through June 30, 
2023
		7.5 percent
	
3.16
3.17		coordinated program after June 30, 2023, through June 30, 
2025 2024
		7.75 percent
	
3.18
3.19		coordinated program after June 30, 2024, through June 30, 
2025
		7.5
	
3.20
3.21		coordinated program after June 30, 2025, through June 30, 
2026
		8.75
	
3.22		coordinated program after June 30, 2025 2026
		9 percent
	
3.23 	(b) Contributions must be made by deduction from salary and must be remitted directly 
3.24 	to the St. Paul Teachers Retirement Fund association at least once each month.
3.25 	(c) When an employee contribution rate changes for a fiscal year, the new contribution 
3.26 	rate is effective for the entire salary paid by the employer with the first payroll cycle reported.

3.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

3.28 	Sec. 3. Minnesota Statutes 2022, section 354B.20, is amended by adding a subdivision to 
3.29 	read:
3.30 		Subd. 10a.IRAP to TRA transfer account. "IRAP to TRA transfer account" means 
3.31 	the account established under section 354B.215, subdivision 11.

3.32 	EFFECTIVE DATE. This section is effective January 1, 2025.

4.1 	Sec. 4. Minnesota Statutes 2022, section 354B.20, is amended by adding a subdivision to 
4.2 	read:
4.3 		Subd. 11a.Offset amount. "Offset amount" means the lesser of $10,000 or 25 percent 
4.4 	of the cost to purchase the maximum past service credit by an eligible person under section 
4.5 	354B.215, subdivision 6, except that, if the eligible person elects to purchase, under section 
4.6 	354B.215, subdivision 6, paragraph (c), less than the maximum past service credit, the offset 
4.7 	amount must not exceed the cost to purchase the amount of past service credit elected.

4.8 	EFFECTIVE DATE. This section is effective January 1, 2025.

4.9 	Sec. 5. Minnesota Statutes 2022, section 354B.20, subdivision 18, is amended to read:
4.10 		Subd. 18.Teachers Retirement plan Association. "Teachers Retirement plan
4.11 	Association" means the retirement plan established by chapter 354.

4.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

4.13 	Sec. 6. [354B.215] TEACHERS RETIREMENT ASSOCIATION COVERAGE FOR 
4.14 	EMPLOYEES WHO DID NOT RECEIVE ELECTION TO TRANSFER.
4.15 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
4.16 	subdivision have the meanings given them, unless the context clearly indicates another 
4.17 	meaning is intended.
4.18 	(b) "Executive director" means the executive director of the Teachers Retirement 
4.19 	Association.
4.20 	(c) "Individual retirement account plan" means the individual retirement account plan 
4.21 	governed by chapter 354B.
4.22 	(d) "Maximum past service credit" means service credit for the period beginning with 
4.23 	the date the eligible person was first covered by the individual retirement account plan to 
4.24 	the transfer date.
4.25 	(e) "Minnesota State" means the Minnesota State Colleges and Universities.
4.26 	(f) "Transfer date" means the date selected by the executive director under subdivision 
4.27 	5 for the purpose of preparing the estimates required by subdivision 5.
4.28 		Subd. 2.Authority to transfer coverage. Notwithstanding any provision of law to the 
4.29 	contrary, an eligible person described in subdivision 3 is authorized to become a member 
4.30 	of the Teachers Retirement Association and purchase service credit upon making an election 
4.31 	under subdivision 6.
5.1 		Subd. 3.Eligible person. (a) An eligible person is a person who:
5.2 	(1) is employed by Minnesota State;
5.3 	(2) has an account in the individual retirement account plan; and
5.4 	(3) satisfies paragraph (b).
5.5 	(b) A person satisfies this paragraph if Minnesota State is not able to produce at least 
5.6 	one of the following items by the end of the 60-day period under subdivision 4, paragraph 
5.7 	(b):
5.8 	(1) a record indicating that the person received notice regarding the person's eligibility 
5.9 	to elect prospective coverage by the Teachers Retirement Association within the election 
5.10 	period under section 354B.211, subdivision 4 or 6, or its predecessor;
5.11 	(2) a record that the person elected retirement coverage by the individual retirement 
5.12 	account plan; or
5.13 	(3) other credible documentation demonstrating that the person was aware of the person's 
5.14 	right to elect retirement coverage by the Teachers Retirement Association.
5.15 		Subd. 4.Eligible person application; information required from Minnesota State. (a) 
5.16 	To elect coverage by the Teachers Retirement Association, an eligible person must submit 
5.17 	a written application to the chancellor on a form provided by Minnesota State. The application 
5.18 	must include:
5.19 	(1) an attestation that the person was not informed of the right to elect a transfer from 
5.20 	the individual retirement account plan to the Teachers Retirement Association and the person 
5.21 	was unaware of the right to elect such a transfer;
5.22 	(2) the date on which the person first became a participant in the individual retirement 
5.23 	account plan;
5.24 	(3) a signed release authorizing Minnesota State to provide employment and other 
5.25 	personnel information to the Teachers Retirement Association; and
5.26 	(4) any other information that Minnesota State may require.
5.27 	(b) No later than 60 days after receipt of the application under paragraph (a), Minnesota 
5.28 	State must verify the information provided by the person in the application, determine 
5.29 	whether the person is an eligible person under subdivision 3, and provide a written response 
5.30 	to the person regarding the determination of eligibility. If Minnesota State determines that 
5.31 	the person is not an eligible person, Minnesota State must include a copy of any 
6.1 	documentation identified in subdivision 3, paragraph (b), in its written response to the 
6.2 	person.
6.3 	(c) If Minnesota State determines that the person is an eligible person under subdivision 
6.4 	3, Minnesota State must forward to the executive director:
6.5 	(1) the application;
6.6 	(2) confirmation or modification of the information provided by the eligible person in 
6.7 	the application;
6.8 	(3) salary history for the eligible person;
6.9 	(4) an estimate of the amount available for transfer from the eligible person's account 
6.10 	in the individual retirement account plan to the Teachers Retirement Association; and
6.11 	(5) any other relevant information.
6.12 		Subd. 5.Determination of service credit purchase amounts. (a) Upon receipt of the 
6.13 	application and information under subdivision 4, the executive director must prepare estimates 
6.14 	of the following as of a prospective transfer date selected by the executive director that is 
6.15 	no later than 90 days after receiving the application and information under subdivision 4:
6.16 	(1) the purchase payment amount determined under section 356.551 to purchase the 
6.17 	maximum past service credit;
6.18 	(2) the amount of service credit the eligible person would receive if the amount estimated 
6.19 	under subdivision 4, paragraph (c), clause (4), is transferred to the Teachers Retirement 
6.20 	Association and used to purchase service credit under section 356.551;
6.21 	(3) the purchase payment amount for additional years of service credit, if any, not to 
6.22 	exceed the maximum past service credit; and
6.23 	(4) the offset amount attributable to the eligible person.
6.24 	(b) No later than 90 days after receiving the application and information under subdivision 
6.25 	4, the executive director must send a written communication to the eligible person with the 
6.26 	amounts determined in paragraph (a) and inform Minnesota State of the offset amount. The 
6.27 	executive director may charge the eligible person a reasonable fee to cover the costs of 
6.28 	calculating the amounts required by paragraph (a).
6.29 	(c) Minnesota State must notify the eligible person and the executive director no later 
6.30 	than 30 days after receiving notice of the offset amount from the executive director under 
6.31 	paragraph (b) if there are sufficient funds in the IRAP to TRA transfer account to pay the 
7.1 	full offset amount or, if there are not sufficient funds, the portion of the offset amount, if 
7.2 	any, that will be paid.
7.3 		Subd. 6.Election to transfer coverage and purchase of service credit. (a) No later 
7.4 	than 60 days after the executive director sends the written communication required by 
7.5 	subdivision 5, the eligible person may elect to transfer coverage from the individual 
7.6 	retirement account plan to the Teachers Retirement Association effective as of the transfer 
7.7 	date.
7.8 	(b) If the eligible person elects to transfer coverage under paragraph (a), the available 
7.9 	balance in the eligible person's account in the individual retirement account plan must be 
7.10 	transferred to the Teachers Retirement Association, not to exceed the amount required by 
7.11 	the Teachers Retirement Association to purchase the maximum past service credit, as 
7.12 	adjusted for the offset amount, if any.
7.13 	(c) If the available balance in the eligible person's account in the individual retirement 
7.14 	account plan plus the offset amount, if any, is less than the amount needed to cover the cost 
7.15 	to purchase the maximum past service credit, the eligible person must:
7.16 	(1) direct the transfer of funds from the eligible person's account in the higher education 
7.17 	supplemental retirement plan established under chapter 354C, from a source specified in 
7.18 	section 356.441, subdivision 1, or from more than one of the foregoing sources in an amount, 
7.19 	in total, sufficient to cover the rest of the cost to purchase the maximum past service credit; 
7.20 	or
7.21 	(2) elect fewer years or partial years of service credit corresponding to the amount of 
7.22 	service credit that may be purchased using the funds transferred from the individual 
7.23 	retirement account plan, the offset amount, and if directed by the eligible person, funds 
7.24 	from any of the sources described in clause (1).
7.25 	(d) Minnesota State must promptly initiate the transfer of funds or work with the eligible 
7.26 	person to initiate the transfer of funds to the Teachers Retirement Association from the 
7.27 	eligible person's account in the individual retirement account plan and, if directed by the 
7.28 	eligible person under paragraph (c), from any other account over which Minnesota State 
7.29 	has the authority to initiate or approve transfers when directed by a participant.
7.30 	(e) Unless the balance in the IRAP to TRA transfer account is zero, Minnesota State 
7.31 	must direct a transfer to the Teachers Retirement Association of an amount that is equal to 
7.32 	the offset amount attributable to the eligible person. If the balance in the IRAP to TRA 
7.33 	transfer account is less than the amount needed to transfer the offset amount, Minnesota 
8.1 	State must direct a transfer of the remaining balance in the IRAP to TRA transfer account 
8.2 	to the Teachers Retirement Association.
8.3 		Subd. 7.Commencement of membership in the Teachers Retirement Association. (a) 
8.4 	Upon receipt by the Teachers Retirement Association of the transfer or transfers under 
8.5 	subdivision 6, the eligible person's membership in the Teachers Retirement Association 
8.6 	commences effective as of the transfer date and the executive director must grant past service 
8.7 	credit to the eligible person.
8.8 	(b) The executive director may adjust the amount of past service credit granted to the 
8.9 	eligible person as necessary to ensure that the Teachers Retirement Association does not 
8.10 	receive less than required to cover the cost of the past service credit granted.
8.11 	(c) Upon membership commencement, the eligible person ceases to be an active 
8.12 	participant in the individual retirement account plan.
8.13 	(d) Upon membership commencement, the person's membership status is irrevocable. 
8.14 	Neither Minnesota State nor the Teachers Retirement Association may seek to revoke the 
8.15 	eligible person's membership status due to events, including but not limited to Minnesota 
8.16 	State producing documentation that would have previously disqualified the person as an 
8.17 	eligible person under subdivision 3.
8.18 		Subd. 8.Service credit for vesting. The Teachers Retirement Association must grant 
8.19 	service credit to the eligible person for all years or partial years of service with Minnesota 
8.20 	State for the purpose of vesting in a retirement annuity under section 354.44 or in a retirement 
8.21 	benefit under section 354.46 or 354.48.
8.22 		Subd. 9.Notice to employees. No later than March 31, 2025, and periodically thereafter, 
8.23 	Minnesota State must provide notice to all employees summarizing this section and offer 
8.24 	assistance to any eligible person who wishes to elect to transfer coverage from the individual 
8.25 	retirement account plan to the Teachers Retirement Association. Minnesota State must 
8.26 	designate personnel responsible for assisting employees with the requirements of this section. 
8.27 	The notice must identify these personnel and provide their contact information.
8.28 		Subd. 10.Annual report required. The chancellor and the executive director must 
8.29 	submit an annual report to the Legislative Commission on Pensions and Retirement stating 
8.30 	the number of employees who elected a transfer during the prior calendar year. Without 
8.31 	identifying any eligible person, the report must include for each eligible person the total 
8.32 	amount transferred by the eligible person from the eligible person's account in the individual 
8.33 	retirement account plan and other sources to purchase past service credit and the offset 
9.1 	amount, if any. The report must be submitted to the Legislative Commission on Pensions 
9.2 	and Retirement no later than January 31 of each year.
9.3 		Subd. 11.IRAP to TRA transfer account created. (a) The IRAP to TRA transfer 
9.4 	account is created in the special revenue fund.
9.5 	(b) Minnesota State must use the money in the IRAP to TRA transfer account established 
9.6 	under paragraph (a) to transfer amounts required by subdivision 6, paragraph (e), until the 
9.7 	balance in the account is zero.

9.8 	EFFECTIVE DATE. (a) Subdivisions 1 to 10 are effective January 1, 2025.
9.9 	(b) Subdivision 11 is effective July 1, 2024.

9.10 	Sec. 7. Laws 2022, chapter 65, article 3, section 1, subdivision 2, is amended to read:
9.11 		Subd. 2.Three-yearTemporary suspension of earnings limitation for teachers 
9.12 	covered by TRA and SPTRFA. (a) Notwithstanding Minnesota Statutes, section 354.44, 
9.13 	subdivision 5, no portion of a reemployed teacher's annuity paid under Minnesota Statutes, 
9.14 	chapter 354, shall be deferred regardless of the amount of the salary earned from the teaching 
9.15 	service during the preceding fiscal year. This paragraph applies only to salary earned during 
9.16 	fiscal years 2022, 2023, and 2024, 2025, 2026, and 2027 and annuity payments made during 
9.17 	calendar years 2023, 2024, and 2025, 2026, 2027, and 2028.
9.18 	(b) Notwithstanding Minnesota Statutes, section 354A.31, subdivision 3, no portion of 
9.19 	a reemployed teacher's annuity paid under Minnesota Statutes, chapter 354A, shall be 
9.20 	deferred or forfeited regardless of the amount of the salary earned from the teaching service 
9.21 	during the preceding calendar year. This subdivision paragraph applies only to salary earned 
9.22 	during calendar years 2022, 2023, and 2024, 2025, 2026, and 2027 and annuity payments 
9.23 	made during calendar years 2023, 2024, and 2025, 2026, 2027, and 2028.

9.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

9.25 	Sec. 8. Laws 2022, chapter 65, article 3, section 1, subdivision 3, is amended to read:
9.26 		Subd. 3.Expiration date. This section expires effective January 1, 2026 2029.

9.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.1 	ARTICLE 2
10.2 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS

10.3 	Section 1. Minnesota Statutes 2022, section 424A.001, subdivision 4, is amended to read:
10.4 		Subd. 4.Relief association. (a) "Relief association" or "volunteer firefighters relief 
10.5 	association" means a volunteer firefighters relief association or a volunteer firefighters 
10.6 	division or account of a partially salaried and partially volunteer firefighters relief association
10.7 	that is:
10.8 	(1) organized and incorporated as a nonprofit corporation to provide retirement benefits 
10.9 	to volunteer firefighters and paid on-call firefighters under chapter 317A and any laws of 
10.10 	the state;
10.11 	(2) governed by this chapter and sections 424A.091 to 424A.095; and
10.12 	(3) directly associated with:
10.13 	(i) a fire department established by municipal ordinance;
10.14 	(ii) an independent nonprofit firefighting corporation that is organized under the 
10.15 	provisions of chapter 317A and that operates primarily for firefighting purposes; or
10.16 	(iii) a fire department operated as or by a joint powers entity that operates primarily for 
10.17 	firefighting purposes.
10.18 	(b) "Relief association" or "volunteer firefighters relief association" does not mean:
10.19 	(1) the Bloomington Fire Department Relief Association governed by Laws 2013, chapter 
10.20 	111, article 5, sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws 1965, 
10.21 	chapter 446, as amended; or
10.22 	(2) the statewide volunteer firefighter plan governed by chapter 353G.
10.23 	(c) A relief association or volunteer firefighters relief association is a governmental 
10.24 	entity that receives and manages public money to provide retirement benefits for individuals 
10.25 	providing the governmental services of firefighting and emergency first response.

10.26 	EFFECTIVE DATE. This section is effective January 1, 2025.

10.27 	Sec. 2. Minnesota Statutes 2022, section 424A.001, subdivision 5, is amended to read:
10.28 		Subd. 5.Special fund. "Special fund" means the special fund of a volunteer firefighters 
10.29 	relief association or the account for volunteer firefighters within the special fund of a partially 
10.30 	salaried and partially volunteer firefighters relief association.

11.1 	EFFECTIVE DATE. This section is effective January 1, 2025.

11.2 	Sec. 3. Minnesota Statutes 2022, section 424A.001, subdivision 8, is amended to read:
11.3 		Subd. 8.Firefighting service. "Firefighting service," if the applicable municipality 
11.4 	approves for a fire department that is a municipal department, or if the applicable contracting 
11.5 	municipality or municipalities approve for a fire department that is an independent nonprofit 
11.6 	firefighting corporation, includes fire department service renderedmeans duties performed 
11.7 	by firefighters and, if approved by the appropriate municipality or municipalities, duties 
11.8 	performed by fire prevention personnel.

11.9 	EFFECTIVE DATE. This section is effective January 1, 2025.

11.10 	Sec. 4. Minnesota Statutes 2022, section 424A.001, subdivision 9, is amended to read:
11.11 		Subd. 9.Separate from active service. "Separate from active service" means that a 
11.12 	firefighter permanently ceases to perform fire suppression duties with a particular volunteer 
11.13 	fire department, permanently ceases to performand fire prevention duties and, permanently 
11.14 	ceases to supervise fire suppression duties, and permanently ceases to supervise fire 
11.15 	prevention duties with a particular fire department.

11.16 	EFFECTIVE DATE. This section is effective January 1, 2025.

11.17 	Sec. 5. Minnesota Statutes 2022, section 424A.001, is amended by adding a subdivision 
11.18 	to read:
11.19 		Subd. 9b.Firefighter. "Firefighter" means a person who is a volunteer firefighter, paid 
11.20 	on-call firefighter, part-time firefighter, full-time firefighter, career firefighter, or any 
11.21 	combination thereof.

11.22 	EFFECTIVE DATE. This section is effective January 1, 2025.

11.23 	Sec. 6. Minnesota Statutes 2022, section 424A.001, subdivision 10, is amended to read:
11.24 		Subd. 10.Volunteer firefighter. "Volunteer firefighter" means a person firefighter who 
11.25 	is a member of the applicable fire department or the independent nonprofit firefighting 
11.26 	corporationdoes not receive compensation per call or hour for firefighting services but who 
11.27 	may receive reimbursement for expenses, who has a choice of availability in providing 
11.28 	services with the fire department, and who is eligible for membership in the applicablea 
11.29 	relief association and: associated with the fire department or participates in the statewide 
11.30 	volunteer firefighter plan under chapter 353G.
12.1 	(i) is engaged in providing emergency response services or delivering fire education or 
12.2 	prevention services as a member of a fire department;
12.3 	(ii) is trained in or is qualified to provide fire suppression duties or to provide fire 
12.4 	prevention duties under subdivision 8; and
12.5 	(iii) meets any other minimum firefighter and service standards established by the fire 
12.6 	department or specified in the articles of incorporation or bylaws of the relief association.

12.7 	EFFECTIVE DATE. This section is effective January 1, 2025.

12.8 	Sec. 7. Minnesota Statutes 2022, section 424A.001, is amended by adding a subdivision 
12.9 	to read:
12.10 		Subd. 10a.Paid on-call firefighter. "Paid on-call firefighter" means a firefighter who 
12.11 	receives compensation per call or per hour for firefighting services, who has a choice of 
12.12 	availability regarding the firefighter's hours or scheduled shifts in providing services with 
12.13 	the fire department, and who is eligible for membership in a relief association associated 
12.14 	with the fire department or participates in the statewide volunteer firefighter plan under 
12.15 	chapter 353G.

12.16 	EFFECTIVE DATE. This section is effective January 1, 2025.

12.17 	Sec. 8. Minnesota Statutes 2022, section 424A.001, is amended by adding a subdivision 
12.18 	to read:
12.19 		Subd. 10b.Part-time firefighter. "Part-time firefighter" means a firefighter who receives 
12.20 	compensation per call or per hour for firefighting services, whose services with the fire 
12.21 	department are scheduled, who is considered by the firefighter's employer to be in part-time 
12.22 	employment, and who, as a result of providing firefighting services, is a member or is 
12.23 	eligible to be a member of the general employees retirement plan or the public employees 
12.24 	police and fire plan under chapter 353.

12.25 	EFFECTIVE DATE. This section is effective January 1, 2025.

12.26 	Sec. 9. Minnesota Statutes 2022, section 424A.001, is amended by adding a subdivision 
12.27 	to read:
12.28 		Subd. 10c.Full-time firefighter or career firefighter. "Full-time firefighter" or "career 
12.29 	firefighter" means a firefighter who receives compensation per hour or a salary for firefighting 
12.30 	services, whose services with the fire department are scheduled and who, as a result of 
13.1 	providing firefighting services, is a member or is eligible to be a member of the general 
13.2 	employees retirement plan or the public employees police and fire plan under chapter 353.

13.3 	EFFECTIVE DATE. This section is effective January 1, 2025.

13.4 	Sec. 10. Minnesota Statutes 2022, section 424A.003, is amended to read:
13.5 	424A.003 CERTIFICATION OF SERVICE CREDIT.
13.6 	(a) When a municipal fire department, a joint powers fire department, or an independent 
13.7 	nonprofit firefighting corporation is directly associated with the volunteera firefighters 
13.8 	relief association, the fire chief shall certify annually by March 31 the service credit for the 
13.9 	previous calendar year of each volunteer firefighter and paid on-call firefighter rendering 
13.10 	active service with the fire department.
13.11 	(b) The certification shall be made to an officer of the relief association's board of trustees 
13.12 	and to the municipal clerk or clerk-treasurer of the largest municipality in population served 
13.13 	by the associated fire department.
13.14 	(c) The fire chief shall notify each volunteer firefighter and paid on-call firefighter 
13.15 	rendering active service with the fire department of the amount of service credit rendered 
13.16 	by the firefighter for the previous calendar year. Upon request, the fire chief shall provide 
13.17 	the firefighter with a written explanation and documentation to support the determination 
13.18 	of service credit. The service credit notification and a description of the process and deadlines 
13.19 	for the firefighter to challenge the fire chief's determination of service credit must be provided 
13.20 	to the firefighter at least 21 days prior to its certification to the relief association and 
13.21 	municipality. If the service credit amount is challenged, the fire chief shall accept and 
13.22 	consider any additional pertinent information and shall make a final determination of service 
13.23 	credit.
13.24 	(d) The service credit certification must be expressed as the number of completed months 
13.25 	of the previous year during which an active volunteer firefighter or paid on-call firefighter 
13.26 	rendered at least the minimum level of duties as specified and required by the fire department 
13.27 	under the rules, regulations, and policies applicable to the fire department. No more than 
13.28 	one year of service credit may be certified for a calendar year.
13.29 	(e) If a volunteer firefighter or paid on-call firefighter who is a member of the relief 
13.30 	association leaves active firefighting service to render active military service that is required 
13.31 	to be governed by the federal Uniformed Services Employment and Reemployment Rights 
13.32 	Act, as amended, the firefighter must be certified as providing service credit for the period 
13.33 	of the military service, up to the applicable limit of the federal Uniformed Services 
14.1 	Employment and Reemployment Rights Act. If the volunteer firefighter or paid on-call 
14.2 	firefighter does not return from the military service in compliance with the federal Uniformed 
14.3 	Services Employment and Reemployment Rights Act, the service credits applicable to that 
14.4 	military service credit period are forfeited and canceled at the end of the calendar year in 
14.5 	which the time limit set by federal law occurs.

14.6 	EFFECTIVE DATE. This section is effective January 1, 2025.

14.7 	Sec. 11. Minnesota Statutes 2022, section 424A.01, subdivision 1, is amended to read:
14.8 		Subdivision 1.Minors Membership eligibility. No volunteer(a) A firefighter or any 
14.9 	volunteer emergency medical personnel is eligible for membership in a firefighters relief 
14.10 	association associated with aif the firefighter or volunteer emergency medical personnel 
14.11 	satisfies the requirements of paragraph (b) or (c), as applicable, and is not otherwise 
14.12 	prohibited from membership under this chapter.
14.13 	(b) To be eligible for membership in a relief association, a firefighter must be a member 
14.14 	of the fire department and:
14.15 	(1) provide services as a volunteer firefighter or as a paid on-call firefighter, although 
14.16 	the firefighter need not exclusively provide services as either a volunteer firefighter or a 
14.17 	paid on-call firefighter;
14.18 	(2) be engaged in providing emergency response services or delivering fire education 
14.19 	or prevention services as a member of a fire department;
14.20 	(3) be trained in or qualified to provide fire suppression duties or to provide fire 
14.21 	prevention duties; and
14.22 	(4) meet any other minimum firefighter and service standards established by the fire 
14.23 	department or specified in the articles of incorporation or bylaws of the firefighters relief 
14.24 	association.
14.25 	(c) A volunteer emergency medical personnel is eligible to be a member of the firefighters 
14.26 	relief association and to qualify for a service pension or other benefit coverage of the relief 
14.27 	association on the same basis as fire department personnel who perform or supervise fire 
14.28 	suppression or fire prevention duties if:
14.29 	(1) the fire department employs or otherwise uses the services of the person solely as 
14.30 	volunteer emergency medical personnel to perform emergency medical response duties or 
14.31 	supervise emergency medical response activities;
15.1 	(2) the bylaws of the firefighters relief association authorize the volunteer emergency 
15.2 	medical personnel's eligibility; and
15.3 	(3) the volunteer emergency medical personnel's eligibility is approved by:
15.4 	(i) the municipality, a if the fire department is a municipal department;
15.5 	(ii) the joint powers entity board, if the fire department is a joint powers entity; or
15.6 	(iii) the contracting municipality or municipalities, if the fire department is an independent 
15.7 	nonprofit firefighting corporation may include as a.
15.8 	(d) Minors are prohibited from membership in a firefighters relief association member 
15.9 	a minor serving as a volunteer firefighter.

15.10 	EFFECTIVE DATE. This section is effective January 1, 2025.

15.11 	Sec. 12. Minnesota Statutes 2022, section 424A.01, subdivision 2, is amended to read:
15.12 		Subd. 2.Status of substitute volunteer firefighters. No person who is serving as a 
15.13 	substitute volunteer firefighter may be considered to be a firefighter for purposes of chapter 
15.14 	477B or this chapter and no substitute volunteer firefighter is authorized to be a member of 
15.15 	any volunteer firefighters relief association governed by chapter 477B or this chapter.

15.16 	EFFECTIVE DATE. This section is effective January 1, 2025.

15.17 	Sec. 13. Minnesota Statutes 2022, section 424A.01, subdivision 5, is amended to read:
15.18 		Subd. 5.Fire prevention personnel. (a) If the applicable municipality or municipalities 
15.19 	approve, the fire department may employ or otherwise utilize the services of persons as 
15.20 	volunteer firefighters to perform fire prevention duties and to supervise fire prevention 
15.21 	activities.
15.22 	(b) PersonnelVolunteer firefighters and paid on-call firefighters serving in fire prevention 
15.23 	positions are eligible to be members of the applicable volunteer firefighterfirefighters relief 
15.24 	association and to qualify for service pension or other benefit coverage of the relief 
15.25 	association on the same basis as fire department personnel who perform fire suppression 
15.26 	duties.
15.27 	(c) PersonnelVolunteer firefighters and paid on-call firefighters serving in fire prevention 
15.28 	positions also are eligible to receive any other benefits under the applicable law or practice 
15.29 	for services on the same basis as personnel who are employed to perform fire suppression 
15.30 	duties.

16.1 	EFFECTIVE DATE. This section is effective January 1, 2025.

16.2 	Sec. 14. Minnesota Statutes 2022, section 424A.015, subdivision 1, is amended to read:
16.3 		Subdivision 1.Separation from active service; exception. (a) No service pension is 
16.4 	payable to a person while the person remains an active member of the respective fire 
16.5 	department, and a person who is receiving a service pension is not entitled to receive any 
16.6 	other benefits from the special fund of the relief association.
16.7 	(b) No relief association as defined in section 424A.001, subdivision 4, may pay a service 
16.8 	pension or disability benefit to a former member of the relief association if that person has 
16.9 	not separated from active service with the fire department to which the relief association is 
16.10 	directly associated, unless:
16.11 	(1) the person discontinues volunteer firefighter and paid on-call firefighter duties with 
16.12 	the fire department and performs duties within the fire department on a part-time or full-time 
16.13 	basis;
16.14 	(2) the governing body of the municipality, of the independent nonprofit firefighting 
16.15 	corporation, or of the joint powers entity has filed its determination with the board of trustees 
16.16 	of the relief association that the person's experience with and service to the fire department 
16.17 	in that person's part-time or full-time capacity would be difficult to replace; and
16.18 	(3) the bylaws of the relief association were amended to provide for the payment of a 
16.19 	service pension or disability benefit for such part-time or full-time employees.

16.20 	EFFECTIVE DATE. This section is effective January 1, 2025.

16.21 	Sec. 15. Minnesota Statutes 2022, section 424A.015, subdivision 5, is amended to read:
16.22 		Subd. 5.Minnesota deferred compensation plan transfers. A relief association may 
16.23 	directly transfer on an institution-to-institution basis the eligible member's lump-sum pension 
16.24 	amount to the requesting member's account in the Minnesota deferred compensation plan, 
16.25 	if:
16.26 	(1) the governing articles of incorporation or bylaws so provide;
16.27 	(2) the volunteer firefighter participates in the Minnesota deferred compensation plan 
16.28 	at the time of retirement; and
16.29 	(3) the applicable retiring firefighter requests in writing that the relief association do so.

16.30 	EFFECTIVE DATE. This section is effective January 1, 2025.

17.1 	Sec. 16. Minnesota Statutes 2022, section 424A.015, subdivision 7, is amended to read:
17.2 		Subd. 7.Combined service pensions. (a) A member with credit for service as an active 
17.3 	firefighter in more than one volunteer firefighters relief association is entitled to a service 
17.4 	pension from each participating relief association if:
17.5 	(1) the articles of incorporation or bylaws of the relief associations provide for such 
17.6 	combined service pensions;
17.7 	(2) the applicable requirements of paragraphs (b) to (e) are met; and
17.8 	(3) the member otherwise qualifies.
17.9 	(b) A member receiving a service pension under this subdivision must be at least partially 
17.10 	vested under the bylaws of the first participating relief association on the date on which the 
17.11 	member terminates active service with that relief association. The service pension paid from 
17.12 	the first participating relief association shall be based on the years of active service accrued 
17.13 	in the first relief association and the vesting percentage applicable to those years of active 
17.14 	service.
17.15 	(c) To receive a service pension from each subsequent relief association, the member 
17.16 	must be at least partially vested under the bylaws of the subsequent relief association, taking 
17.17 	into consideration the member's total service credit accrued in all participating relief 
17.18 	associations to the date the member terminates active service with the subsequent relief 
17.19 	association. The service pension paid from each subsequent relief association shall be based 
17.20 	on the years of active service accrued solely in that relief association and the vesting 
17.21 	percentage applicable to the combined amount of total service credit accrued in all of the 
17.22 	participating relief associations.
17.23 	(d) The member must have one or more years of service credit in each participating 
17.24 	relief association. The service pension must be based on:
17.25 	(1) for defined benefit relief associations, the service pension amount in effect for the 
17.26 	relief association on the date on which the member's active volunteer firefighting services 
17.27 	covered by that relief association terminate; and
17.28 	(2) for defined contribution relief associations, the member's individual account balance 
17.29 	on the date on which the member's active volunteer firefighting services covered by that 
17.30 	relief association terminate.
17.31 	(e) To receive a service pension under this subdivision, the member must become a 
17.32 	member of the subsequent relief association within two years of the date of termination of 
17.33 	active service with the prior relief association. If requested by the member or a subsequent 
18.1 	relief association, the secretary of each prior relief association must provide written notice 
18.2 	to the member and the subsequent relief association regarding the amount of active service 
18.3 	accrued by the member in the prior relief association.

18.4 	EFFECTIVE DATE. This section is effective January 1, 2025.

18.5 	Sec. 17. Minnesota Statutes 2022, section 424A.016, subdivision 2, is amended to read:
18.6 		Subd. 2.Defined contribution service pension eligibility. (a) A relief association, 
18.7 	when its articles of incorporation or bylaws so provide, may pay out of the assets of its 
18.8 	special fund a defined contribution service pension to each of its members who:
18.9 	(1) separates from active service with the fire department;
18.10 	(2) reaches age 50;
18.11 	(3) completes at least five years of active service as an active member of the fire 
18.12 	department to which the relief association is associated;
18.13 	(4) completes at least five years of active membership with the relief association before 
18.14 	separation from active service; and
18.15 	(5) complies with any additional conditions as to age, service, and membership that are 
18.16 	prescribed by the bylaws of the relief association.
18.17 	(b) In the case of a member who has completed at least five years of active service as 
18.18 	an active member of the fire department to which the relief association is associated on the 
18.19 	date that the relief association is established and incorporated, the requirement that the 
18.20 	member complete at least five years of active membership with the relief association before 
18.21 	separation from active service may be waived by the board of trustees of the relief association 
18.22 	if the member completes at least five years of inactive membership with the relief association 
18.23 	before the date of the payment of the service pension. During the period of inactive 
18.24 	membership, the member is not entitled to receive any disability benefit coverage, is not 
18.25 	entitled to receive additional individual account allocation of fire state aid or municipal 
18.26 	contribution towards toward a service pension, and is considered to have the status of a 
18.27 	person entitled to a deferred service pension.
18.28 	(c) The service pension earned by a volunteerfirefighter under this chapter and the 
18.29 	articles of incorporation and bylaws of the relief association may be paid whether or not 
18.30 	the municipality or independent nonprofit firefighting corporation to which the relief 
18.31 	association is associated qualifies for the receipt of fire state aid under chapter 477B.

18.32 	EFFECTIVE DATE. This section is effective January 1, 2025.

19.1 	Sec. 18. Minnesota Statutes 2022, section 424A.016, subdivision 6, is amended to read:
19.2 		Subd. 6.Deferred service pensions. (a) A "deferred member" means a member of a 
19.3 	relief association who has separated from active service and membership and has completed 
19.4 	the minimum service and membership requirements in subdivision 2. The requirement that 
19.5 	a member separate from active service and membership is waived for persons who have 
19.6 	discontinued their volunteer firefighter and paid on-call firefighter duties and who are 
19.7 	employed on a part-time or full-time basis under section 424A.015, subdivision 1.
19.8 	(b) A deferred member is entitled to receive a deferred service pension when the member 
19.9 	reaches at least age 50, or at least the minimum age specified in the bylaws governing the 
19.10 	relief association if that age is greater than age 50, and makes a valid written application.
19.11 	(c) A defined contribution relief association must credit interest or additional investment 
19.12 	performance on the deferred lump-sum service pension during the period of deferral for all 
19.13 	deferred members on or after January 1, 2021. A defined contribution relief association 
19.14 	may specify in its bylaws the method by which it will credit interest or additional investment 
19.15 	performance to the accounts of deferred members. Such method shall be limited to one of 
19.16 	the three methods provided in this paragraph. In the event the bylaws do not specify a 
19.17 	method, the interest or additional investment performance must be credited using the method 
19.18 	defined in clause (3). The permissible methods are:
19.19 	(1) at the investment performance rate actually earned on that portion of the assets if the 
19.20 	deferred benefit amount is invested by the relief association in a separate account established 
19.21 	and maintained by the relief association;
19.22 	(2) at the investment performance rate actually earned on that portion of the assets if the 
19.23 	deferred benefit amount is invested in a separate investment vehicle held by the relief 
19.24 	association; or
19.25 	(3) at the investment return on the assets of the special fund of the defined contribution 
19.26 	volunteer firefighters relief association in proportion to the share of the assets of the special 
19.27 	fund to the credit of each individual deferred member account through the accounting date 
19.28 	on which the investment return is recognized by and credited to the special fund.
19.29 	(d) Notwithstanding the requirements of section 424A.015, subdivision 6, bylaw 
19.30 	amendments made in accordance with paragraph (c) on or before January 1, 2022, shall 
19.31 	apply to members already in deferred status as of January 1, 2021.
19.32 	(e) Unless the bylaws provide differently, the dates that will be used by a relief association 
19.33 	in determining the creditable amount of interest or additional investment performance on 
20.1 	amust be allocated to each deferred member account beginning on the date that the member 
20.2 	separates from active service and membership and ending on the last date that the deferred 
20.3 	member account is valued before the final distribution of the deferred service pension shall 
20.4 	be as follows:.
20.5 	(1) for a relief association that has elected to credit interest or additional investment 
20.6 	performance under paragraph (c), clause (1) or (3), beginning on the date that the member 
20.7 	separates from active service and membership and ending on the accounting date immediately 
20.8 	before the deferred member commences receipt of the deferred service pension; or
20.9 	(2) for a relief association that has elected to credit interest or additional investment 
20.10 	performance under paragraph (c), clause (2), beginning on the date that the member separates 
20.11 	from active service and membership and ending on the date that the separate investment 
20.12 	vehicle is valued immediately before the date on which the deferred member commences 
20.13 	receipt of the deferred service pension.

20.14 	EFFECTIVE DATE. This section is effective January 1, 2025.

20.15 	Sec. 19. Minnesota Statutes 2022, section 424A.02, subdivision 1, is amended to read:
20.16 		Subdivision 1.Authorization. (a) A defined benefit relief association, when its articles 
20.17 	of incorporation or bylaws so provide, may pay out of the assets of its special fund a defined 
20.18 	benefit service pension to each of its members who: (1) separates from active service with 
20.19 	the fire department; (2) reaches age 50; (3) completes at least five years of active service 
20.20 	as an active member of the fire department to which the relief association is associated; (4) 
20.21 	completes at least five years of active membership with the relief association before 
20.22 	separation from active service; and (5) complies with any additional conditions as to age, 
20.23 	service, and membership that are prescribed by the bylaws of the relief association. A service 
20.24 	pension computed under this section may be prorated monthly for fractional years of service 
20.25 	as the bylaws or articles of incorporation of the relief association so provide. The bylaws 
20.26 	or articles of incorporation may define a "month," but the definition must require a calendar 
20.27 	month to have at least 16 days of active service. If the bylaws or articles of incorporation 
20.28 	do not define a "month," a "month" is a completed calendar month of active service measured 
20.29 	from the member's date of entry to the same date in the subsequent month. The service 
20.30 	pension earned by a volunteer firefighter under this chapter and the articles of incorporation 
20.31 	and bylaws of the volunteer firefighters relief association may be paid whether or not the 
20.32 	municipality or independent nonprofit firefighting corporation to which the relief association 
20.33 	is associated qualifies for the receipt of fire state aid under chapter 477B.
21.1 	(b) In the case of a member who has completed at least five years of active service as 
21.2 	an active member of the fire department to which the relief association is associated on the 
21.3 	date that the relief association is established and incorporated, the requirement that the 
21.4 	member complete at least five years of active membership with the relief association before 
21.5 	separation from active service may be waived by the board of trustees of the relief association 
21.6 	if the member completes at least five years of inactive membership with the relief association 
21.7 	before the date of the payment of the service pension. During the period of inactive 
21.8 	membership, the member is not entitled to receive disability benefit coverage, is not entitled 
21.9 	to receive additional service credit towards toward computation of a service pension, and 
21.10 	is considered to have the status of a person entitled to a deferred service pension under 
21.11 	subdivision 7.
21.12 	(c) No municipality, independent nonprofit firefighting corporation, or joint powers 
21.13 	entity may delegate the power to take final action in setting a service pension or ancillary 
21.14 	benefit amount or level to the board of trustees of the relief association or to approve in 
21.15 	advance a service pension or ancillary benefit amount or level equal to the maximum amount 
21.16 	or level that this chapter would allow rather than a specific dollar amount or level.

21.17 	EFFECTIVE DATE. This section is effective January 1, 2025.

21.18 	Sec. 20. Minnesota Statutes 2022, section 424A.02, subdivision 3, is amended to read:
21.19 		Subd. 3.Determining maximum pension benefit. (a) Except as provided in paragraph 
21.20 	(b) and section 424B.22, subdivision 4, a defined benefit relief association may not set in 
21.21 	its bylaws a service pension amount above the following maximum amounts:
21.22 	(1) for a defined benefit relief association in which the governing bylaws provide for a 
21.23 	monthly service pension, the maximum monthly service pension amount per month for each 
21.24 	year of service credited is the lesser of $100 or the maximum monthly service pension 
21.25 	amount that could be adopted by the relief association as a bylaws amendment that satisfies 
21.26 	section 424A.093, subdivision 6, paragraph (d); and
21.27 	(2) for a defined benefit relief association in which the governing bylaws provide for a 
21.28 	lump-sum service pension, the maximum lump-sum service pension amount for each year 
21.29 	of service credited is the lesser of $15,000 or the maximum lump-sum service pension 
21.30 	amount that could be adopted by the relief association as a bylaws amendment that satisfies 
21.31 	section 424A.092, subdivision 6, paragraph (e).
22.1 	(b) A defined benefit relief association may set in its bylaws a service pension amount 
22.2 	that is not greater than the maximum amounts in clause (1) or (2), as applicable, but only 
22.3 	if the service pension amount has been ratified by the municipality.
22.4 	(1) For a defined benefit relief association that pays a monthly service pension, the 
22.5 	maximum monthly service pension amount per month for each year of service credited is 
22.6 	$100.
22.7 	(2) For a defined benefit relief association that pays a lump-sum service pension, the 
22.8 	maximum lump-sum service pension amount for each year of service credited is $15,000.
22.9 	(c) The method of calculating service pensions must be applied uniformly for all years 
22.10 	of active service. Credit must be given for all years of active service, unless the bylaws of 
22.11 	the relief association provide that service credit is not given for:
22.12 	(1) years of active service in excess of caps on service credit; or
22.13 	(2) years of active service earned by a former member who:
22.14 	(i) has ceased duties as a volunteer firefighter and paid on-call firefighter with the fire 
22.15 	department before becoming vested under subdivision 2; and
22.16 	(ii) has not resumed active service with the fire department and active membership in 
22.17 	the relief association for a period as defined in the relief association's bylaws, of not less 
22.18 	than five years.

22.19 	EFFECTIVE DATE. This section is effective January 1, 2025.

22.20 	Sec. 21. Minnesota Statutes 2022, section 424A.02, subdivision 7, is amended to read:
22.21 		Subd. 7.Deferred service pensions. (a) A member of a defined benefit relief association 
22.22 	is entitled to a deferred service pension if the member separates from active service and 
22.23 	membership and has completed the minimum service and membership requirements in 
22.24 	subdivision 1. The requirement that a member separate from active service and membership 
22.25 	is waived for persons who have discontinued their volunteer firefighter and paid on-call 
22.26 	firefighter duties and who are employed on a part-time or full-time basis under section 
22.27 	424A.015, subdivision 1.
22.28 	(b) The deferred service pension is payable when the former member reaches at least 
22.29 	age 50, or at least the minimum age specified in the bylaws governing the relief association 
22.30 	if that age is greater than age 50, and when the former member makes a valid written 
22.31 	application.
23.1 	(c) A defined benefit relief association that provides a lump-sum service pension governed 
23.2 	by subdivision 2c may, when its governing bylaws so provide, credit interest on the deferred 
23.3 	lump-sum service pension during the period of deferral. If provided for in the bylaws, interest 
23.4 	must be credited in one of the following manners:
23.5 	(1) at the investment performance rate actually earned on that portion of the assets if the 
23.6 	deferred benefit amount is invested by the relief association in a separate account established 
23.7 	and maintained by the relief association;
23.8 	(2) at the investment performance rate actually earned on that portion of the assets if the 
23.9 	deferred benefit amount is invested in a separate investment vehicle held by the relief 
23.10 	association; or
23.11 	(3) at an interest rate of up to five percent, compounded annually, as set by the board of 
23.12 	trustees.
23.13 	(d) Any change in the interest rate set by the board of trustees under paragraph (c), clause 
23.14 	(3), must be ratified by the governing body of the municipality or joint powers entity served 
23.15 	by the fire department to which the relief association is directly associated, or by the 
23.16 	independent nonprofit firefighting corporation, as applicable.
23.17 	(e) Interest under paragraph (c), clause (3), is credited beginning on the January 1 next 
23.18 	following the date on which the deferred service pension interest rate as set by the board of 
23.19 	trustees was ratified by the governing body of the municipality or joint powers entity served 
23.20 	by the fire department to which the relief association is directly associated, or by the 
23.21 	independent nonprofit firefighting corporation, as applicable.
23.22 	(f) Unless the bylaws of a relief association that has elected to credit interest or additional 
23.23 	investment performance on deferred lump-sum service pensions under paragraph (c) specifies 
23.24 	a different interest or additional investment performance method, including the interest or 
23.25 	additional investment performance period starting date and ending date, the interest or 
23.26 	additional investment performance on a deferred service pension is creditable as follows:
23.27 	(1) for a relief association that has elected to credit interest or additional investment 
23.28 	performance under paragraph (c), clause (1) or (3), beginning on the first day of the month 
23.29 	next following the date on which the member separates from active service and membership 
23.30 	and ending on the last day of the month immediately before the month in which the deferred 
23.31 	member commences receipt of the deferred service pension; or
23.32 	(2) for a relief association that has elected to credit interest or additional investment 
23.33 	performance under paragraph (c), clause (2), beginning on the date that the member separates 
24.1 	from active service and membership and ending on the date that the separate investment 
24.2 	vehicle is valued immediately before the date on which the deferred member commences 
24.3 	receipt of the deferred service pension.
24.4 	(g) For a deferred service pension that is transferred to a separate account established 
24.5 	and maintained by the relief association or separate investment vehicle held by the relief 
24.6 	association, the deferred member bears the full investment risk subsequent to transfer and 
24.7 	in calculating the accrued liability of the volunteer firefighters relief association that pays 
24.8 	a lump-sum service pension, the accrued liability for deferred service pensions is equal to 
24.9 	the separate relief association account balance or the fair market value of the separate 
24.10 	investment vehicle held by the relief association.

24.11 	EFFECTIVE DATE. This section is effective January 1, 2025.

24.12 	Sec. 22. Minnesota Statutes 2022, section 424A.02, subdivision 9, is amended to read:
24.13 		Subd. 9.Limitation on ancillary benefits. A defined benefit relief association, including 
24.14 	any volunteer firefighters relief association governed by Laws 2013, chapter 111, article 5, 
24.15 	sections 31 to 42, or any volunteer firefighters division of a relief association governed by 
24.16 	chapter 424,and the Bloomington Fire Department Relief Association may only pay ancillary 
24.17 	benefits which that would constitute an authorized disbursement as specified in section 
24.18 	424A.05 subject to the following requirements or limitations:
24.19 	(1) with respect to a defined benefit relief association in which governing bylaws provide 
24.20 	solely for a lump-sum service pension to a retiring member, or provide a retiring member 
24.21 	the choice of either a lump-sum service pension or a monthly service pension and the 
24.22 	lump-sum service pension was chosen, no ancillary benefit may be paid to any former 
24.23 	member or paid to any person on behalf of any former member after the former member (i) 
24.24 	terminates active service with the fire department and active membership in the relief 
24.25 	association; and (ii) commences receipt of a service pension as authorized under this section; 
24.26 	and
24.27 	(2) with respect to any defined benefit relief association, no ancillary benefit paid or 
24.28 	payable to any member, to any former member, or to any person on behalf of any member 
24.29 	or former member, may exceed in amount the total earned service pension of the member 
24.30 	or former member. The total earned service pension must be calculated by multiplying the 
24.31 	service pension amount specified in the bylaws of the relief association at the time of death 
24.32 	or disability, whichever applies, by the years of service credited to the member or former 
24.33 	member. The years of service must be determined as of (i) the date the member or former 
24.34 	member became entitled to the ancillary benefit; or (ii) the date the member or former 
25.1 	member died entitling a survivor or the estate of the member or former member to an 
25.2 	ancillary benefit. The ancillary benefit must be calculated without regard to whether the 
25.3 	member had attained the minimum amount of service and membership credit specified in 
25.4 	the governing bylaws. For active members, the amount of a permanent disability benefit or 
25.5 	a survivor benefit must be equal to the member's total earned service pension except that 
25.6 	the bylaws of a defined benefit relief association may provide for the payment of a survivor 
25.7 	benefit in an amount not to exceed five times the yearly service pension amount specified 
25.8 	in the bylaws on behalf of any member who dies before having performed five years of 
25.9 	active service in the fire department with which the relief association is affiliated. For 
25.10 	deferred members, the amount of a permanent disability benefit or a survivor benefit must 
25.11 	be calculated using the service pension amount in effect on the date specified in section 
25.12 	424A.015, subdivision 6, unless the bylaws of the relief association specify a different 
25.13 	service pension amount to be used for the calculation.
25.14 	(3)(i) If a lump sum survivor or death benefit is payable under the articles of incorporation 
25.15 	or bylaws, the benefit must be paid:
25.16 	(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
25.17 	(B) as a survivor benefit to the surviving children of the deceased firefighter if no 
25.18 	surviving spouse;
25.19 	(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no 
25.20 	surviving spouse or surviving children; or
25.21 	(D) as a death benefit to the estate of the deceased active or deferred firefighter if no 
25.22 	surviving children and no beneficiary designated.
25.23 	(ii) If there are no surviving children, the surviving spouse may waive, in writing, wholly 
25.24 	or partially, the spouse's entitlement to a survivor benefit.
25.25 	(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of 
25.26 	incorporation or bylaws, the benefit must be paid:
25.27 	(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
25.28 	(B) as a survivor benefit to the surviving children of the deceased firefighter if no 
25.29 	surviving spouse;
25.30 	(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no 
25.31 	surviving spouse or surviving children; or
26.1 	(D) as a death benefit to the estate of the deceased active or deferred firefighter if no 
26.2 	surviving spouse, no surviving children, and no beneficiary designated.
26.3 	(ii) If there are no surviving children, the surviving spouse may waive, in writing, wholly 
26.4 	or partially, the spouse's entitlement to a survivor benefit.
26.5 	(iii) For purposes of this clause, if the relief association bylaws authorize a monthly 
26.6 	survivor benefit payable to a designated beneficiary, the relief association bylaws may limit 
26.7 	the total survivor benefit amount payable.
26.8 	(5) For purposes of this section, for a monthly benefit volunteer firefirefighters relief 
26.9 	association or for a combination lump-sum and monthly benefit volunteer firefirefighters
26.10 	relief association where a monthly benefit service pension has been elected by or a monthly 
26.11 	benefit is payable with respect to a firefighter, a designated beneficiary must be a natural 
26.12 	person. For purposes of this section, for a lump-sum volunteer firefirefighters relief 
26.13 	association or for a combination lump-sum and monthly benefit volunteer firefirefighters
26.14 	relief association where a lump-sum service pension has been elected by or a lump-sum 
26.15 	benefit is payable with respect to a firefighter, a trust created under chapter 501C may be 
26.16 	a designated beneficiary. If a trust is payable to the surviving children organized under 
26.17 	chapter 501C as authorized by this section and there is no surviving spouse, the survivor 
26.18 	benefit may be paid to the trust, notwithstanding a requirement of this section to the contrary.

26.19 	EFFECTIVE DATE. This section is effective January 1, 2025.

26.20 	Sec. 23. Minnesota Statutes 2022, section 424A.021, is amended to read:
26.21 	424A.021 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED 
26.22 	SERVICE.
26.23 		Subdivision 1.Authorization. Subject to restrictions stated in this section, a volunteer 
26.24 	firefighter or paid on-call firefighter who is absent from firefighting service due to service 
26.25 	in the uniformed services, as defined in United States Code, title 38, section 4303(13), may 
26.26 	obtain service credit if the relief association is a defined benefit plan or an allocation by the 
26.27 	relief association as though the person was an active member if the relief association is a 
26.28 	defined contribution plan for the period of the uniformed service, not to exceed five years, 
26.29 	unless a longer period is required under United States Code, title 38, section 4312.
26.30 		Subd. 2.Limitations. (a) To be eligible for service credit or an allocation as though an 
26.31 	active member under this section, the volunteer firefighter must return to firefighting service 
26.32 	with coverage by the same relief association or by the successor to that relief association 
27.1 	upon discharge from service in the uniformed service within the time frame required in 
27.2 	United States Code, title 38, section 4312(e).
27.3 	(b) Service credit or an allocation as though an active member is not authorized if the 
27.4 	firefighter separates from uniformed service with a dishonorable or bad conduct discharge 
27.5 	or under other than honorable conditions.
27.6 	(c) Service credit or an allocation as though an active member is not authorized if the 
27.7 	firefighter fails to provide notice to the fire department that the individual is leaving to 
27.8 	provide service in the uniformed service, unless it is not feasible to provide that notice due 
27.9 	to the emergency nature of the situation.

27.10 	EFFECTIVE DATE. This section is effective January 1, 2025.

27.11 	Sec. 24. Minnesota Statutes 2022, section 424A.092, subdivision 6, is amended to read:
27.12 		Subd. 6.Municipal ratification for bylaws amendments. (a) The board of trustees of 
27.13 	a relief association may adopt an amendment to the articles of incorporation or bylaws that 
27.14 	increases the coverage, service pensions, or retirement benefits provided by the relief 
27.15 	association only after preparing an estimate of the expected increase in the financial 
27.16 	requirements andchange to the accrued liability and the overall funding balance of the 
27.17 	special fund resulting from the amendment.
27.18 	(b) For purposes of this subdivision, "financial requirements""overall funding balance" 
27.19 	means the amount of the surplus or deficit calculated under subdivision 3, paragraph (c)
27.20 	(b). "Accrued liability" means the amount calculated under subdivision 2 or 2a, as applicable. 
27.21 	"Estimate" means the estimate required in paragraph (a).
27.22 	(c) If the special fund of a relief association to which this section applies does not have 
27.23 	a surplus overhas a deficit from full funding under subdivision 3, paragraph (c) (b), clause 
27.24 	(5) (3), andor if the municipality is required to provide financial support to the special fund 
27.25 	under this section has a minimum obligation under subdivision 3, paragraph (d), the board 
27.26 	of trustees of the relief association may adopt anany amendment to the articles of 
27.27 	incorporation or bylaws adopted by the board of trustees that increases the coverage, service 
27.28 	pensions, or retirement benefits provided by the relief association. The amendment is not 
27.29 	effective until it is ratified by the governing body of the affiliated municipality or independent 
27.30 	nonprofit firefighting corporation, as applicable. The governing body may ratify suchthe
27.31 	amendment only if the relief association has delivered to the governing body the estimate 
27.32 	described in paragraphs (a) and (b), certified by an officer of the relief association.
28.1 	(d) If the special fund of a relief association to which this section applies is fully funded 
28.2 	or has a surplus over full funding under subdivision 3, paragraph (c) (b), clause (5) (3), and 
28.3 	if the municipality is not required to provide financial supportdoes not have a minimum 
28.4 	obligation under subdivision 3, paragraph (d), to the special fund under this section, the 
28.5 	relief association may adopt an amendment to the articles of incorporation or bylaws that 
28.6 	increases the coverage, service pensions, or retirement benefits provided by the relief 
28.7 	association. (1) The amendment is effective if the municipality ratifies the amendment. (2) 
28.8 	The amendment is effective without municipal ratification ifor, in the absence of municipal 
28.9 	ratification, the amendment satisfies paragraph (e).
28.10 	(e) An amendment satisfies this paragraph if the estimate described in paragraphs (a) 
28.11 	and (b) demonstrates that the amendment will not cause:
28.12 	(1) the amount of the resulting increase in the accrued liability of the special fund to 
28.13 	exceed 90 percent of the amount of the surplus over full funding reported in the prior year; 
28.14 	and
28.15 	(2) the financial requirements of the special fund to exceed the expected amount of the 
28.16 	future fire state aid and police and firefighter retirement supplemental state aid to be received 
28.17 	by the relief association. an increase in the minimum obligation of the municipality for the 
28.18 	upcoming calendar year under subdivision 3, paragraph (d); and
28.19 	(3) the special fund of the relief association to have a deficit from full funding under 
28.20 	subdivision 3, paragraph (c), clause (5), on the day immediately following the adoption of 
28.21 	the amendment.
28.22 	(f) If a relief association amends the articles of incorporation or bylaws without municipal 
28.23 	ratification under this subdivision, and, subsequent to the amendment, the financial 
28.24 	requirements of the special fund of the relief association under this section are such so as 
28.25 	to require financial support from minimum obligation of the municipality under subdivision 
28.26 	3, paragraph (d), increases, the provision whichthat was implemented without municipal 
28.27 	ratification is no longer effective andon July 31. Any service pensions or retirement benefits 
28.28 	payable after that date may be paid only in accordance with the articles of incorporation or 
28.29 	bylaws as amended with municipal ratification.

28.30 	EFFECTIVE DATE. This section is effective January 1, 2025.

28.31 	Sec. 25. Minnesota Statutes 2022, section 424A.093, subdivision 6, is amended to read:
28.32 		Subd. 6.Municipal ratification for bylaws amendments. (a) The board of trustees of 
28.33 	a relief association may adopt an amendment to the articles of incorporation or bylaws that 
29.1 	increases the coverage, service pensions, or retirement benefits provided by the relief 
29.2 	association only after the board of trustees has had an updated actuarial valuation including 
29.3 	the proposed change or an estimate of the expected actuarial impact of the proposed change 
29.4 	prepared by the actuary of the relief association.
29.5 	(b) If the special fund of a relief association to which this section applies does not have 
29.6 	a surplus overhas a deficit from full funding under subdivision 4, andor if the municipality 
29.7 	is required to provide financial support to the special fundhas a minimum obligation under 
29.8 	this section subdivision 5, the board of trustees of the relief association may adopt anany
29.9 	amendment to the articles of incorporation or bylaws adopted by the board of trustees that 
29.10 	increases the coverage, service pensions, or retirement benefits provided by the relief 
29.11 	association. The amendment is not effective until it is ratified by the governing body of the 
29.12 	affiliated municipality or independent nonprofit firefighting corporation, as applicable. The 
29.13 	governing body may ratify suchthe amendment only if the relief association has delivered 
29.14 	to the governing body the actuarial valuation or estimate described in paragraph (a), certified 
29.15 	by an officer of the relief association.
29.16 	(c) If the special fund of a relief association to which this section applies is fully funded 
29.17 	or has a surplus over full funding under subdivision 4, and if the municipality isdoes not 
29.18 	required to provide financial support to the special fundhave a minimum obligation under 
29.19 	this section subdivision 5, the relief association may adopt an amendment to the articles of 
29.20 	incorporation or bylaws that increases the coverage, service pensions, or retirement benefits 
29.21 	provided by the relief association. The amendment is effective:
29.22 	(1) if the municipality ratifies the amendment; or
29.23 	(2) without municipal ratification if the amendment satisfies paragraph (d).
29.24 	(d) An amendment satisfies this paragraph if the actuarial valuation or estimate described 
29.25 	in paragraph (a) demonstrates that the amendment will not cause:
29.26 	(1) the amount of the resulting increase in the accrued liability of the special fund to 
29.27 	exceed 90 percent of the amount of the surplus over full funding reported in the prior year;
29.28 	and
29.29 	(2) the financial requirements of the special fund to exceed the expected amount of the 
29.30 	future fire state aid and police and firefighter retirement supplemental state aid to be received 
29.31 	by the relief association. an increase in the minimum obligation of the municipality for the 
29.32 	upcoming calendar year; and
30.1 	(3) the special fund of the relief association to have a deficit from full funding under 
30.2 	subdivision 4 on the day immediately following the adoption of the amendment.
30.3 	(e) If a relief association amends its articles of incorporation or bylaws without municipal 
30.4 	ratification pursuant to this subdivision, and, subsequent to the amendment, the financial 
30.5 	requirements of the special fund of the relief association under this section are such so as 
30.6 	to require financial support fromminimum obligation of the municipality increases under 
30.7 	this section, the provision whichthat was implemented without municipal ratification is no 
30.8 	longer effective andon July 31. Any service pensions or retirement benefits payable after 
30.9 	that date may be paid only in accordance with the articles of incorporation or bylaws as 
30.10 	amended with municipal ratification.

30.11 	EFFECTIVE DATE. This section is effective January 1, 2025.

30.12 	Sec. 26. Minnesota Statutes 2022, section 424A.094, subdivision 1, is amended to read:
30.13 		Subdivision 1.Authorized inclusion in fire state aid program; covered nonprofit 
30.14 	corporations. (a) This section applies to any independent nonprofit firefighting corporation 
30.15 	incorporated or organized under chapter 317A which that: (1) operates exclusively for 
30.16 	firefighting purposes; (2) which is composed of volunteer firefighters, paid on-call 
30.17 	firefighters, or both volunteer firefighters and paid on-call firefighters; and (3) which has 
30.18 	a duly established separate subsidiary incorporated firefighters relief association which that
30.19 	provides retirement coverage for or pays a service pension to a retired firefighter or a 
30.20 	retirement benefit to a surviving dependent of either an active or a retired firefighter, and 
30.21 	which that is subject to the applicable provisions of chapter 424A.
30.22 	(b) Notwithstanding any law to the contrary, a municipality contracting with an 
30.23 	independent nonprofit firefighting corporation must be included in the distribution of fire 
30.24 	state aid to the appropriate county auditor by the state auditor only if the independent 
30.25 	nonprofit firefighting corporation complies with the provisions of this section.

30.26 	EFFECTIVE DATE. This section is effective January 1, 2025.

30.27 	Sec. 27. Minnesota Statutes 2022, section 424A.095, subdivision 2, is amended to read:
30.28 		Subd. 2.Investment report. (a) Annually, the state auditor must provide an investment 
30.29 	report to each relief association that has complied with the reporting requirements under 
30.30 	section 356.219, subdivisions 1 and 3. The investment report must contain the following 
30.31 	information:
31.1 	(1) the relief association's average annual rates of return for at least the previous one-, 
31.2 	three-, five-, ten-, 15-, and 20-year periods for which the state auditor has investment 
31.3 	information;
31.4 	(2) the relief association's asset allocation;
31.5 	(3) the average annual one-year and ten-year benchmark rates of return;
31.6 	(4) the average annual one-year and ten-year rates of return for the statewide volunteer 
31.7 	firefighter plan;
31.8 	(5) the one-year and ten-year average annual rates of return for the State Board of 
31.9 	Investment supplemental investment fund; and
31.10 	(6) a graphical comparison between:
31.11 	(i) the relief association's average annual rates of return for the previous year and for 
31.12 	the previous multiyear periods provided under clause (1); and
31.13 	(ii) the average annual rates of return for the same periods for the supplemental investment 
31.14 	fund's balanced fund or any successor fund.
31.15 	(b) The state auditor shall select the benchmark rates of return based on the best practice 
31.16 	in the industry.
31.17 	(c) An officer of the relief association's board of trustees must certify to the state auditor 
31.18 	that the board reviewed the investment report. The certification must accompany the audited 
31.19 	financial statements or detailed financial statement under section 424A.014, subdivision 1
31.20 	or 2, whichever applies. A copy of the report must be kept on file by the relief association 
31.21 	and must be available for inspection by any member of the public.

31.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

31.23 	Sec. 28. Minnesota Statutes 2022, section 424A.10, is amended to read:
31.24 	424A.10 STATE SUPPLEMENTAL BENEFIT; VOLUNTEER FIREFIGHTERS.
31.25 		Subdivision 1.Definitions. For purposes of this section:
31.26 	(1) "qualified recipient" means a volunteer firefighter who receives a lump-sum 
31.27 	distribution of pension or retirement benefits from a volunteer firefighters relief association 
31.28 	or from the statewide volunteer firefighter plan; and
31.29 	(2) "survivor of a deceased active or deferred volunteer firefighter" means the surviving 
31.30 	spouse of a deceased active or deferred volunteer firefighter or, if none, the surviving child 
31.31 	or children of a deceased active or deferred volunteer firefighter, or, if none, the designated 
32.1 	beneficiary of the deceased active or deferred volunteer firefighter, or, if no beneficiary has 
32.2 	been designated, the estate of the deceased active or deferred volunteer firefighter;.
32.3 	(3) "active volunteer firefighter" means a person who:
32.4 	(i) regularly renders fire suppression service, the performance or supervision of authorized 
32.5 	fire prevention duties, or the performance or supervision of authorized emergency medical 
32.6 	response activities for a fire department;
32.7 	(ii) has met the statutory and other requirements for relief association membership; and
32.8 	(iii) is deemed by the relief association under law and its bylaws to be a fully qualified 
32.9 	member of the relief association or from the statewide volunteer firefighter plan for at least 
32.10 	one month;
32.11 	(4) "deferred volunteer firefighter" means a former active volunteer firefighter who:
32.12 	(i) terminated active firefighting service, the performance or supervision of authorized 
32.13 	fire prevention duties, or the performance or supervision of authorized emergency medical 
32.14 	response activities; and
32.15 	(ii) has sufficient service credit from the applicable relief association or from the statewide 
32.16 	volunteer firefighter plan to be entitled to a service pension under the bylaws of the relief 
32.17 	association, but has not applied for or has not received the service pension; and
32.18 	(5) "volunteer firefighter" includes an individual whose services were utilized to perform 
32.19 	or supervise fire prevention duties if authorized under section 424A.01, subdivision 5, and 
32.20 	individuals whose services were used to perform emergency medical response duties or 
32.21 	supervise emergency medical response activities if authorized under section 424A.01, 
32.22 	subdivision 5a.
32.23 		Subd. 2.Payment of supplemental benefit. (a) Upon the payment by a volunteer
32.24 	firefighters relief association or by the statewide volunteer firefighter plan of a lump-sum 
32.25 	distribution to a qualified recipient, the association or retirement plan, as applicable, must 
32.26 	pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the contrary, 
32.27 	the relief association must pay the supplemental benefit out of its special fund and the 
32.28 	statewide volunteer firefighter plan must pay the supplemental benefit out of the statewide 
32.29 	volunteer firefighter plan. This benefit is an amount equal to ten percent of the regular 
32.30 	lump-sum distribution that is paid on the basis of the recipient's service as a volunteer
32.31 	firefighter. In no case may the amount of the supplemental benefit exceed $1,000. A 
32.32 	supplemental benefit under this paragraph may not be paid to a survivor of a deceased active 
32.33 	or deferred volunteer firefighter in that capacity.
33.1 	(b) Upon the payment by a relief association or the retirement plan of a lump-sum 
33.2 	survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased 
33.3 	deferred volunteer firefighter, the association or retirement plan, as applicable, must pay a 
33.4 	supplemental survivor benefit to the survivor of the deceased active or deferred volunteer
33.5 	firefighter from the special fund of the relief association and the retirement plan must pay 
33.6 	a supplemental survivor benefit to the survivor of the deceased active or deferred volunteer
33.7 	firefighter from the retirement fund if chapter 353G so provides. The amount of the 
33.8 	supplemental survivor benefit is 20 percent of the survivor benefit, but not to exceed $2,000.
33.9 	(c) For purposes of this section, the term "regular lump-sum distribution" means the 
33.10 	pretax lump-sum distribution excluding any interest that may have been credited during a 
33.11 	volunteer firefighter's period of deferral.
33.12 	(d) An individual may receive a supplemental benefit under paragraph (a) or under 
33.13 	paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer
33.14 	firefighter benefit.
33.15 	(e) If a qualified recipient receives more than one lump-sum distribution, the qualified 
33.16 	recipient is eligible to receive a supplemental benefit or supplemental survivor benefit, 
33.17 	whichever is applicable, with each lump-sum distribution. Each supplemental benefit shall 
33.18 	be calculated pursuant to paragraph (a) or (b), as applicable, and shall be subject to a separate 
33.19 	limit.
33.20 	(f) Qualified recipients who elect to receive their lump-sum distribution in installments 
33.21 	under section 424A.016, subdivision 5, or 424A.02, subdivision 8, are eligible to receive 
33.22 	one supplemental benefit calculated on the total lump-sum distribution amount under 
33.23 	paragraph (a) or (b), as applicable.
33.24 		Subd. 3.State reimbursement. (a) Each year, to be eligible for state reimbursement of 
33.25 	the amount of supplemental benefits paid under subdivision 2 during the preceding calendar 
33.26 	year, the volunteer firefighters relief association or the statewide volunteer firefighter plan 
33.27 	shall apply to the commissioner of revenue by February 15. By March 15, the commissioner 
33.28 	shall reimburse the relief association for the amount of the supplemental benefits paid by 
33.29 	the relief association to qualified recipients and to survivors of deceased active or deferred 
33.30 	volunteer firefighters.
33.31 	(b) The commissioner of revenue shall prescribe the form of and supporting information 
33.32 	that must be supplied as part of the application for state reimbursement. The commissioner 
33.33 	of revenue shall reimburse the relief association by paying the reimbursement amount to 
33.34 	the treasurer of the municipality where the association is located and shall reimburse the 
34.1 	retirement plan by paying the reimbursement amount to the executive director of the Public 
34.2 	Employees Retirement Association. Within 30 days after receipt, the municipal treasurer 
34.3 	shall transmit the state reimbursement to the treasurer of the association if the association 
34.4 	has filed a financial report with the municipality. If the relief association has not filed a 
34.5 	financial report with the municipality, the municipal treasurer shall delay transmission of 
34.6 	the reimbursement payment to the association until the complete financial report is filed. 
34.7 	If the association has dissolved or has been removed as a trustee of state aid, the treasurer 
34.8 	shall deposit the money in a special account in the municipal treasury, and the money may 
34.9 	be disbursed only for the purposes and in the manner provided in section 424A.08. When 
34.10 	paid to the association, the reimbursement payment must be deposited in the special fund 
34.11 	of the relief association and when paid to the retirement plan, the reimbursement payment 
34.12 	must be deposited in the retirement fund of the plan.
34.13 	(c) A sum sufficient to make the payments is appropriated from the general fund to the 
34.14 	commissioner of revenue.
34.15 		Subd. 4.In lieu of income tax exclusion. (a) The supplemental benefit provided by this 
34.16 	section is in lieu of the state income tax exclusion for lump-sum distributions of retirement 
34.17 	benefits paid to volunteer firefighters.
34.18 	(b) If the law is modified to exclude or exempt volunteer firefighters' lump-sum 
34.19 	distributions from state income taxation, the supplemental benefits under this section are 
34.20 	no longer payable, beginning with the first calendar year in which the exclusion or exemption 
34.21 	is effective. This subdivision does not apply to exemption of all or part of a lump-sum 
34.22 	distribution under section 290.032 or 290.0802.

34.23 	EFFECTIVE DATE. This section is effective January 1, 2025.

34.24 	Sec. 29. Minnesota Statutes 2022, section 424B.22, subdivision 2, is amended to read:
34.25 		Subd. 2.Involuntary dissolution and termination. (a) A relief association is dissolved 
34.26 	and the retirement plan administered by the relief association is terminated automatically 
34.27 	if:
34.28 	(1) the fire department affiliated with a relief association is dissolved by action of the 
34.29 	governing body of the municipality in which the fire department is located or by the 
34.30 	governing body of the independent nonprofit firefighting corporation, whichever applies; 
34.31 	or
34.32 	(2) the fire department affiliated with a relief association has terminated the employment 
34.33 	or services of all active members of the relief association.
35.1 	(b) An involuntary termination of a relief association under this subdivision is effective 
35.2 	on the December 31 that is at least eight months after the date on which the fire department 
35.3 	is dissolved or the termination of employment or services of all active members of the relief 
35.4 	association occurs. The board of trustees must comply with subdivisions 3 and 5 to 12. The 
35.5 	board of trustees may comply with subdivision 4. The state auditor has the discretion to 
35.6 	waive these requirements if the board of trustees requests a waiver in advance and provides 
35.7 	adequate demonstration that meeting these requirements is not practicable.
35.8 	(c) The retirement plan administered by a relief association is terminated automatically 
35.9 	if the relief association is dissolved, effective on the date of the dissolution of the relief 
35.10 	association.

35.11 	EFFECTIVE DATE. This section is effective January 1, 2025.

35.12 	Sec. 30. Minnesota Statutes 2022, section 424B.22, subdivision 10, is amended to read:
35.13 		Subd. 10.Supplemental benefits. Within 60 days after the distribution of benefits under 
35.14 	subdivision 8, the municipality or firefighting corporation with which the fire department 
35.15 	is affiliated shall pay supplemental benefits under section 424A.10 to each participant and 
35.16 	survivor who satisfies the requirements of section 424A.10, subdivision 2,. A supplemental 
35.17 	benefit is payable to each participant who receives a retirement benefit if the participant is 
35.18 	at least age 50. A supplemental benefit is payable to each participant or survivor who 
35.19 	receives, respectively, a disability benefit or survivor benefit without regard to any minimum 
35.20 	age requirement. The commissioner of revenue shall reimburse the municipality or 
35.21 	independent nonprofit firefighting corporation for all supplemental benefits paid as provided 
35.22 	in section 424A.10, subdivision 3.

35.23 	EFFECTIVE DATE. This section is effective for supplemental benefits reimbursed in 
35.24 	calendar year 2025 and thereafter.

35.25 	Sec. 31. REVISOR INSTRUCTION.
 35.26 	In Minnesota Statutes, the revisor of statutes shall change the terms "volunteer firefighters 
35.27 	relief association," "volunteer firefighter relief association," "volunteer firefighters' relief 
35.28 	association," and "volunteer fire relief association" to "firefighters relief association" 
35.29 	wherever the terms appear. The revisor shall make any necessary grammatical changes or 
35.30 	changes to sentence structure necessary to preserve the meaning of the text as a result of 
35.31 	the changes.

35.32 	EFFECTIVE DATE. This section is effective January 1, 2025.

36.1 	Sec. 32. REPEALER.
 36.2 	Minnesota Statutes 2022, section 424A.01, subdivision 5a, is repealed.

36.3 	EFFECTIVE DATE. This section is effective January 1, 2025.

36.4 	ARTICLE 3
36.5 	STATEWIDE VOLUNTEER FIREFIGHTER PLAN; ADDING A DEFINED 
36.6 	CONTRIBUTION PLAN

36.7 	Section 1. Minnesota Statutes 2022, section 352.1155, subdivision 3, is amended to read:
36.8 		Subd. 3.Service credit prohibition. Notwithstanding any law to the contrary, a person 
36.9 	eligible under this section may not, based on employment to which the waiver in this section 
36.10 	applies, earn further service credit in a Minnesota public defined benefit plan and is not 
36.11 	eligible to participate in a Minnesota public defined contribution plan, other than a volunteer 
36.12 	fire planfirefighter relief association governed by chapter 424A or the statewide volunteer 
36.13 	firefighter plan governed by chapter 353G. No employer or employee contribution to any 
36.14 	of these plans may be made on behalf of such a person.

36.15 	EFFECTIVE DATE. This section is effective January 1, 2025.

36.16 	Sec. 2. Minnesota Statutes 2022, section 353G.01, is amended by adding a subdivision to 
36.17 	read:
36.18 		Subd. 2a.Association. "Association" means the Public Employees Retirement Association 
36.19 	established under chapter 353.

36.20 	EFFECTIVE DATE. This section is effective January 1, 2025.

36.21 	Sec. 3. Minnesota Statutes 2022, section 353G.01, is amended by adding a subdivision to 
36.22 	read:
36.23 		Subd. 4a.Defined contribution fund. "Defined contribution fund" means that portion 
36.24 	of the fund consisting of the assets attributable to the defined contribution plan.

36.25 	EFFECTIVE DATE. This section is effective January 1, 2025.

36.26 	Sec. 4. Minnesota Statutes 2022, section 353G.01, is amended by adding a subdivision to 
36.27 	read:
36.28 		Subd. 4b.Defined contribution plan.  "Defined contribution plan" means the plan that 
36.29 	is one of the two plans that comprise the statewide volunteer firefighter plan. The defined 
36.30 	contribution plan provides each member with a retirement benefit equal to the member's 
37.1 	individual account balance, to which state aid, contributions, forfeitures, and investment 
37.2 	earnings and losses have been credited.

37.3 	EFFECTIVE DATE. This section is effective January 1, 2025.

37.4 	Sec. 5. Minnesota Statutes 2022, section 353G.01, is amended by adding a subdivision to 
37.5 	read:
37.6 		Subd. 4c.Defined benefit fund.  "Defined benefit fund" means that portion of the fund 
37.7 	consisting of the assets attributable to the defined benefit plan.

37.8 	EFFECTIVE DATE. This section is effective January 1, 2025.

37.9 	Sec. 6. Minnesota Statutes 2022, section 353G.01, is amended by adding a subdivision to 
37.10 	read:
37.11 		Subd. 4d.Defined benefit plan. "Defined benefit plan" means the plan that is one of 
37.12 	the two plans that comprise the statewide volunteer firefighter plan. The defined benefit 
37.13 	plan provides each member with a retirement benefit that is either a lump sum or a monthly 
37.14 	pension in an amount determined by using a formula that takes into account years of service, 
37.15 	vesting percentage, and the benefit level for the member's fire department. The defined 
37.16 	benefit plan consists of the lump-sum division and the monthly division.

37.17 	EFFECTIVE DATE. This section is effective January 1, 2025.

37.18 	Sec. 7. Minnesota Statutes 2022, section 353G.01, is amended by adding a subdivision to 
37.19 	read:
37.20 		Subd. 5a.Fire department account. "Fire department account" means the account in 
37.21 	the name of each participating employer to which is credited the assets and, in the case of 
37.22 	a participating employer in the defined benefit plan, the liabilities related to the retirement 
37.23 	benefits for members who are or were providing service to the participating employer.

37.24 	EFFECTIVE DATE. This section is effective January 1, 2025.

37.25 	Sec. 8. Minnesota Statutes 2022, section 353G.01, is amended by adding a subdivision to 
37.26 	read:
37.27 		Subd. 5b.Firefighting corporation. "Firefighting corporation" means an independent 
37.28 	nonprofit firefighting corporation that is organized under the provisions of chapter 317A 
37.29 	and that operates primarily for firefighting purposes.

37.30 	EFFECTIVE DATE. This section is effective January 1, 2025.

38.1 	Sec. 9. Minnesota Statutes 2022, section 353G.01, is amended by adding a subdivision to 
38.2 	read:
38.3 		Subd. 5c.Forfeiture. "Forfeiture" means the portion of an account or pension benefit 
38.4 	that is forfeited when a volunteer firefighter ends service before becoming 100 percent 
38.5 	vested in the account or pension benefit.

38.6 	EFFECTIVE DATE. This section is effective January 1, 2025.

38.7 	Sec. 10. Minnesota Statutes 2022, section 353G.01, is amended by adding a subdivision 
38.8 	to read:
38.9 		Subd. 6b.Individual account. "Individual account" means the account in a fire 
38.10 	department account in the defined contribution plan established for a member under section 
38.11 	353G.082 to which allocations are credited and from which deductions are taken under 
38.12 	section 353G.082.

38.13 	EFFECTIVE DATE. This section is effective January 1, 2025.

38.14 	Sec. 11. Minnesota Statutes 2023 Supplement, section 353G.01, subdivision 7b, is amended 
38.15 	to read:
38.16 		Subd. 7b.Lump-sum division. "Lump-sum division" means the division of the defined 
38.17 	benefit plan governed by section 353G.11.

38.18 	EFFECTIVE DATE. This section is effective January 1, 2025.

38.19 	Sec. 12. Minnesota Statutes 2023 Supplement, section 353G.01, subdivision 8b, is amended 
38.20 	to read:
38.21 		Subd. 8b.Monthly benefit division. "Monthly benefit division" means the division of 
38.22 	the defined benefit plan governed by section 353G.112.

38.23 	EFFECTIVE DATE. This section is effective January 1, 2025.

38.24 	Sec. 13. Minnesota Statutes 2022, section 353G.01, subdivision 9, is amended to read:
38.25 		Subd. 9.Municipality. "Municipality" means a governmental entity specified in section 
38.26 	477B.01, subdivision 10, a city or township that has established a fire department, a city or 
38.27 	township that has entered into a contract with an independent nonprofita firefighting 
38.28 	corporation, or a city or township that has entered into a contract with a joint powers entity 
38.29 	established under section 471.59 that has established or operates a fire department.

39.1 	EFFECTIVE DATE. This section is effective January 1, 2025.

39.2 	Sec. 14. Minnesota Statutes 2022, section 353G.01, subdivision 9a, is amended to read:
39.3 		Subd. 9a.Relief association. "Relief association" means a volunteer firefighter relief 
39.4 	association establishedas defined under chapter 424A, including a volunteer firefighter 
39.5 	relief association to which records, assets, and liabilities related to lump-sum or monthly 
39.6 	benefits for active and former firefighters will be transferred from the retirement fund upon 
39.7 	satisfaction of the requirements of section 353G.17 424A.001, subdivision 4.

39.8 	EFFECTIVE DATE. This section is effective January 1, 2025.

39.9 	Sec. 15. Minnesota Statutes 2022, section 353G.01, is amended by adding a subdivision 
39.10 	to read:
39.11 		Subd. 9b.Normal retirement age. "Normal retirement age" means age 50.

39.12 	EFFECTIVE DATE. This section is effective January 1, 2025.

39.13 	Sec. 16. Minnesota Statutes 2022, section 353G.01, is amended by adding a subdivision 
39.14 	to read:
39.15 		Subd. 9c.Participating employer. "Participating employer" means the municipality or 
39.16 	firefighting corporation that has joined the retirement plan and is associated with a fire 
39.17 	department with volunteer firefighters who are covered by the retirement plan.

39.18 	EFFECTIVE DATE. This section is effective January 1, 2025.

39.19 	Sec. 17. Minnesota Statutes 2022, section 353G.01, subdivision 11, is amended to read:
39.20 		Subd. 11.Retirement fund. "Retirement fund" means the statewide volunteer firefighter 
39.21 	fund established under section 353G.02, subdivision 3, consisting of the defined contribution 
39.22 	fund and the defined benefit fund.

39.23 	EFFECTIVE DATE. This section is effective January 1, 2025.

39.24 	Sec. 18. Minnesota Statutes 2023 Supplement, section 353G.01, subdivision 12, is amended 
39.25 	to read:
39.26 		Subd. 12.Retirement plan. "Retirement plan" or "plan" means the retirementstatewide 
39.27 	volunteer firefighter plan, either the lump-sum division or the monthly benefit division
39.28 	consisting of the defined contribution plan and the defined benefit plan, established by this 
39.29 	chapter.

40.1 	EFFECTIVE DATE. This section is effective January 1, 2025.

40.2 	Sec. 19. Minnesota Statutes 2023 Supplement, section 353G.01, subdivision 12a, is 
40.3 	amended to read:
40.4 		Subd. 12a.Service credit. "Service credit" means the period of service rendered by a 
40.5 	volunteer firefighter that is certified under section 353G.07 by the fire chief of the fire 
40.6 	department in which the volunteer firefighter serves. A volunteer firefighter's service credit 
40.7 	equals all periods of service with any fire department covered by the plan.

40.8 	EFFECTIVE DATE. This section is effective July 1, 2024.

40.9 	Sec. 20. Minnesota Statutes 2023 Supplement, section 353G.01, subdivision 14a, is 
40.10 	amended to read:
40.11 		Subd. 14a.Vesting service credit. "Vesting service credit" means service credit plus 
40.12 	any earlier period of service rendered as a volunteer firefighter, as defined in subdivision 
40.13 	15, in another fire department covered by the plan or in a fire department in the state that 
40.14 	was not covered by the plan at the time the service was rendered. The earlier period of 
40.15 	service must be certified by the fire chief of the fire department covered by the plan in a 
40.16 	manner similar to the requirements of section 353G.07. The volunteer firefighter must 
40.17 	provide documentation in a form acceptable to the executive director regarding the earlier 
40.18 	period of service.

40.19 	EFFECTIVE DATE. This section is effective July 1, 2024.

40.20 	Sec. 21. Minnesota Statutes 2023 Supplement, section 353G.01, subdivision 15, is amended 
40.21 	to read:
40.22 		Subd. 15.Volunteer firefighter. "Volunteer firefighter" means a person who is an active
40.23 	a member of the fire department of a municipality or an independent nonprofita firefighting 
40.24 	corporation and who, in that capacity, on either a volunteer or on-call basis, engages in:
40.25 	(1) fire suppression or prevention activities, provides;
40.26 	(2) emergency response services,;
40.27 	(3) emergency medical response activities; or delivers
40.28 	(4) fire education or prevention services on an on-call basis supervises personnel engaged 
40.29 	in any of the foregoing.

40.30 	EFFECTIVE DATE. This section is effective January 1, 2025.

41.1 	Sec. 22. Minnesota Statutes 2023 Supplement, section 353G.02, subdivision 1, is amended 
41.2 	to read:
41.3 		Subdivision 1.Retirement plan. The statewide volunteer firefighter plan, consisting of 
41.4 	a lump-sum divisiondefined contribution plan and a monthly benefit division defined benefit 
41.5 	plan, is created established.

41.6 	EFFECTIVE DATE. This section is effective January 1, 2025.

41.7 	Sec. 23. Minnesota Statutes 2023 Supplement, section 353G.02, subdivision 3, is amended 
41.8 	to read:
41.9 		Subd. 3.Retirement fund. (a) The statewide volunteer firefighter fund, consisting of a 
41.10 	lump-sum account and a monthly benefit account, is created established. The retirement 
41.11 	fund contains the assets attributable to the statewide volunteer firefighterdefined contribution 
41.12 	plan and the defined benefit plan.
41.13 	(b) The State Board of Investment shall invest those portions of the retirement fund not 
41.14 	required for immediate purposes in the statewide lump-sum volunteer firefighter plan in 
41.15 	the statewide volunteer firefighter account of the Minnesota supplemental investment fund 
41.16 	under section 11A.17.
41.17 	(c) The commissioner of management and budget is the ex officio treasurer of the 
41.18 	statewide volunteer firefighterretirement fund. The commissioner of management and 
41.19 	budget's general bond to the state covers all liability for actions taken as the treasurer of the 
41.20 	retirement fund.
41.21 	(d) The revenues of the plan beyond investment returns are governed by section 353G.08
41.22 	and must be deposited in the fund. The disbursements of the plan are governed by section 
41.23 	353G.08. The commissioner of management and budget shall transmit a detailed statement 
41.24 	showing all credits to and disbursements from the retirement fund to the executive director 
41.25 	monthly.

41.26 	EFFECTIVE DATE. This section is effective January 1, 2025.

41.27 	Sec. 24. Minnesota Statutes 2023 Supplement, section 353G.02, subdivision 4, is amended 
41.28 	to read:
41.29 		Subd. 4.Periodic audit; biennial actuarial valuation; biennial funding report. (a) 
41.30 	The legislative auditor shall periodically audit the statewide volunteer firefighterretirement 
41.31 	fund.
42.1 	(b) The executive director must retain an approved actuary under section 356.214 to 
42.2 	perform biennial actuarial valuationvaluations of each fire department account in the 
42.3 	lump-summonthly division of the statewide volunteer firefighter plan may be performed 
42.4 	periodically as determined to be appropriate or useful by the board. An actuarial valuation 
42.5 	of the monthly benefit division of the statewide volunteer firefighter plan must be performed 
42.6 	as frequently as required by government sector generally accepted accounting standards. 
42.7 	An. The actuarial valuation must be performed by the approved actuary retained under 
42.8 	section 356.214 and must conform with section 356.215 and the standards for actuarial 
42.9 	work. AnThe actuarial valuation must contain sufficient detail for each participating 
42.10 	employing entityemployer to ascertain the actuarial condition of its account in the retirement 
42.11 	fund and the amount of its required contribution requirement towards itsto the account.
42.12 	(c) The executive director must perform biennial funding assessments of each fire 
42.13 	department account in the lump-sum division. The assessment must comply with section 
42.14 	353G.08, subdivision 1.

42.15 	EFFECTIVE DATE. This section is effective January 1, 2025.

42.16 	Sec. 25. Minnesota Statutes 2023 Supplement, section 353G.03, subdivision 3, is amended 
42.17 	to read:
42.18 		Subd. 3.Composition. (a) The advisory board consists of ten members.
42.19 	(b) The advisory board members are:
42.20 	(1) one representative of Minnesota townships, appointed by the Minnesota Association 
42.21 	of Townships;
42.22 	(2) two representatives of Minnesota cities, appointed by the League of Minnesota Cities;
42.23 	(3) one representative of Minnesota fire chiefs, who is a fire chief, appointed by the 
42.24 	Minnesota State Fire Chiefs Association;
42.25 	(4) two representatives of Minnesota volunteer firefighters, all who are active volunteer 
42.26 	firefighters, one of whom is covered by the lump-sum division and one of whom is covered 
42.27 	by the monthly benefit division, appointed by the Minnesota State Fire Chiefs Association;
42.28 	(5) three representatives of Minnesota volunteer firefighters who are, at least one of 
42.29 	whom is covered by the lump-sum division of the defined benefit plan and at least one of 
42.30 	whom is covered by the defined contribution plan, appointed by the Minnesota State Fire 
42.31 	Departments Association; and
42.32 	(6) one representative of the Office of the State Auditor, designated by the state auditor.

43.1 	EFFECTIVE DATE. This section is effective January 1, 2027.

43.2 	Sec. 26. Minnesota Statutes 2022, section 353G.05, as amended by Laws 2023, chapter 
43.3 	47, article 10, section 9, is amended to read:
43.4 	353G.05 PLAN COVERAGE ELECTION.
43.5 		Subdivision 1.Entities eligible to request coverage. (a) A relief association or a,
43.6 	municipality, or independent nonprofit firefighting corporation affiliated with a relief 
43.7 	association may elect to have its volunteer firefighters covered by the lump-sum division, 
43.8 	if the volunteer firefighters for whom coverage is being requested are covered by a relief 
43.9 	association that is a lump-sum defined benefit relief association or a defined contribution 
43.10 	relief association governed by chapter 424A retirement plan.
43.11 	(b) A relief association or a municipality or independent nonprofit firefighting corporation 
43.12 	affiliated with a relief association may elect to have its volunteer firefighters covered by 
43.13 	the lump-sum division or the monthly benefit division of the retirement plan, if the volunteer 
43.14 	firefighters for whom coverage is being requested are covered by a relief association that 
43.15 	is a monthly benefit defined benefit relief association governed by chapter 424A.
43.16 	(c) A municipality or independent nonprofit firefighting corporation that is not affiliated 
43.17 	with a relief association may elect to have its volunteer firefighters covered by the lump-sum 
43.18 	division of the plan.
43.19 		Subd. 1a.Requesting coverage. (a) An entity that is eligible under subdivision 1 to 
43.20 	make a request for coverage may initiate the process of obtaining coverage by filing a request 
43.21 	with the executive director, as described in this subdivision.
43.22 	(b) The request for coverage must be in writing and on a form prescribed by the executive 
43.23 	director.
43.24 	(c) If the request for coverage is for volunteer firefighters covered by a relief association 
43.25 	retirement plan, the secretary of the relief association, following approval of the request by 
43.26 	the board of trustees of the relief association, and the chief administrative officer of the 
43.27 	entity affiliated with the relief association, following approval of the request by the governing 
43.28 	body of the entity, must jointly make the request. If the relief association is affiliated with 
43.29 	more than one entity, the chief administrative officer of each affiliated entity must execute 
43.30 	the request.
43.31 	(d) If the request for coverage is for volunteer firefighters who are not covered by a 
43.32 	relief association retirement plan, the chief administrative officer of the entity operating the 
43.33 	fire department must make the request.
44.1 		Subd. 1b.Selection of plan and division. (a) In the request for coverage, the entity must 
44.2 	select coverage by either the defined benefit plan or the defined contribution plan.
44.3 	(b) If the entity selects coverage by the defined benefit plan, the entity must select 
44.4 	coverage by either the lump-sum division or the monthly division, except that the entity 
44.5 	may select coverage by the monthly division only if the relief association with which the 
44.6 	entity is affiliated is a defined benefit relief association, as defined under section 424A.001, 
44.7 	subdivision 1b, that provides a monthly pension.
44.8 	(c) If the entity selects coverage by the defined contribution plan and the relief association 
44.9 	with which the entity is affiliated is a defined benefit relief association, as defined under 
44.10 	section 424A.001, subdivision 1b, the defined benefit relief association must complete a 
44.11 	conversion under section 353G.19 as part of the process of joining the retirement plan.
44.12 		Subd. 1c.Selection of vesting schedule. (c) In the request for coverage, the entity must 
44.13 	identify the desired service pension amount and select a vesting schedule from the following 
44.14 	options:
44.15 	(1) incremental vesting beginning with 40 percent vested after completing five years of 
44.16 	active service and increasing by four percent upon completion of each additional year of 
44.17 	active service, until 100 percent vested upon completion of 20 years of active service;
44.18 	(2) incremental vesting beginning with 40 percent vested after completing five years of 
44.19 	active service and increasing by 12 percent upon completion of each additional year of 
44.20 	active service, until 100 percent vested upon completion of ten years of active service; or
44.21 	(3) incremental vesting beginning with 40 percent vested after completing ten years of 
44.22 	active service and increasing by six percent upon completion of each additional year of 
44.23 	active service, until 100 percent vested upon completion of 20 years of active service.
44.24 	The entity must not select a vesting schedule that requires more years of service to become 
44.25 	partially or fully vested than the vesting schedule in effect under the former affiliated relief 
44.26 	association, if any.
44.27 	(d) If the request for coverage is for volunteer firefighters covered by a monthly benefit 
44.28 	defined benefit relief association, the entity making the request must elect coverage either 
44.29 	by the monthly benefit division or by the lump-sum division.
44.30 	(e) If the request for coverage is for volunteer firefighters covered by a relief association 
44.31 	that provides both a monthly benefit and a lump-sum benefit, the entity making the request 
44.32 	must elect coverage by the monthly benefit division, the lump-sum division, or by both 
44.33 	divisions.
45.1 	(f) If the request for coverage is for volunteer firefighters covered by a relief association 
45.2 	with a plan governed by chapter 424A, the secretary of the relief association, following 
45.3 	approval of the request by the board of the relief association, and the chief administrative 
45.4 	officer of the entity affiliated with the relief association, following approval of the request 
45.5 	by the governing body of the entity, must jointly make the request. If the relief association 
45.6 	is affiliated with more than one entity, the chief administrative officer of each affiliated 
45.7 	entity must execute the request.
45.8 	(g) If the request for coverage is for volunteer firefighters who are not covered by a 
45.9 	relief association, the chief administrative officer of the entity operating the fire department 
45.10 	must make the request.
45.11 		Subd. 1d.Selection of benefit level. (a) If the request for coverage is for coverage by 
45.12 	the defined benefit plan, the entity making the request must identify the desired benefit 
45.13 	level.
45.14 	(b) If the request for coverage is for the lump-sum division of the defined benefit plan, 
45.15 	the benefit level identified must be no less than $500 per full year of service credit and no 
45.16 	more than the maximum amount permitted under section 424A.02, subdivision 3, per full 
45.17 	year of service credit. Benefit levels between the minimum and maximum must be in $100 
45.18 	increments.
45.19 	(c) If the request for coverage is for the monthly division of the defined benefit plan, 
45.20 	the benefit level is the amount specified in the retirement benefit plan document applicable 
45.21 	to the fire department.
45.22 		Subd. 2.Cost analysis for coverage by the lump sum lump-sum division of the 
45.23 	defined benefit plan. (a) Upon receipt of a request for coverage by the lump-sum division
45.24 	defined benefit plan, the executive director must prepare a cost analysis as described in this 
45.25 	subdivision and deliver the cost analysis to the board of trustees of the relief association, if 
45.26 	one exists, and the governing body.
45.27 	(b) The cost analysis under this subdivision must be based on:
45.28 	(1) the service pension amountbenefit level under section 353G.11 closest to the service 
45.29 	pension amountbenefit level provided by the relief association if the relief association is a 
45.30 	lump-sum defined benefit plan, an amount that is equal to 95 percent of the most current 
45.31 	average account balance per relief association member if the relief association is a defined 
45.32 	contribution plan, or the lowest service pension amountbenefit level under section 353G.11 
45.33 	if there is no relief association, rounded up; and
46.1 	(2) if different than the amount under clause (1), the service pension amountbenefit 
46.2 	level identified in the request under subdivision 1a 1d.
46.3 	(c) The cost analysis must take into account the vesting option selected in the request 
46.4 	under subdivision 1a 1c.
46.5 	(d) The cost analysis must be prepared using a mathematical procedure certified as 
46.6 	accurate by an approved actuary retained by the Public Employees Retirement Association.
46.7 	(e) If the request for coverage was made by a relief association that has filed the 
46.8 	information required under section 424A.014 in a timely fashion, upon request by the 
46.9 	executive director, the state auditor shall provide the most recent data available on the 
46.10 	financial condition of the relief association, the most recent firefighter demographic data 
46.11 	available, and a copy of the current relief association bylaws. If a cost analysis is requested, 
46.12 	but no relief association exists, the chief administrative officer of the entity operating the 
46.13 	fire department shall provide the demographic information on the volunteer firefighters 
46.14 	serving as members of the fire department requested by the executive director.
46.15 		Subd. 3.Cost analysis for coverage by the monthly benefit division of the defined 
46.16 	benefit plan. (a) Upon receipt of a request for coverage by the monthly benefit division, 
46.17 	the executive director must prepare a cost analysis as described in this subdivision and 
46.18 	deliver the cost analysis to the board of trustees of the relief association, if one exists, and 
46.19 	the governing body.
46.20 	(b) The cost analysis under this subdivision must be prepared by the approved actuary 
46.21 	retained by the Public Employees Retirement Association. The cost analysis must be based 
46.22 	on:
46.23 	(1) the monthly service pension amountbenefit level and other retirement benefit types 
46.24 	and amounts in effect for the relief association as of the date of the request;
46.25 	(2) if different than the amount under clause (1), the monthly pension amount identified 
46.26 	in the request under subdivision 1a 1d and evaluated in a special actuarial valuation prepared 
46.27 	under sections 356.215 and 356.216; and
46.28 	(3) the standards for actuarial work and the actuarial assumptions utilized in the most 
46.29 	recent actuarial valuation, except that the applicable investment return actuarial assumption 
46.30 	is six percent.
46.31 	(c) The cost analysis must take into account the vesting option selected in the request 
46.32 	under subdivision 1a 1c.
47.1 	(d) The secretary of the relief association making the request must supply the demographic 
47.2 	and financial data necessary for the cost analysis to be prepared.
47.3 		Subd. 4.Invested assets review. If a cost analysis is requested under subdivision 2 or 
47.4 	3, The executive director of the State Board of Investment shall review the investment 
47.5 	portfolio of the relief association retirement plan, if applicable one exists, for compliance 
47.6 	with the applicable provisions of chapter 11A and for appropriateness for retention under 
47.7 	the established investment objectives and investment policies of the State Board of 
47.8 	Investment. If the prospective retirement coverage change is approved under subdivision 
47.9 	5, the State Board of Investment may require that the relief association liquidate any 
47.10 	investment security or other asset which the executive director of the State Board of 
47.11 	Investment has determined to be an ineligible or inappropriate investment for retention by 
47.12 	the State Board of Investment. The security or asset liquidation must occur before the 
47.13 	effective date of the transfer of plan coverage. If requested to do so by the chief administrative 
47.14 	officer of the relief association, the executive director of the State Board of Investment shall 
47.15 	provide advice about the best means to conduct the liquidation.
47.16 		Subd. 5.Finalization; coverage transfer. (a) The transfer of coverage to the defined 
47.17 	contribution plan is considered approved if, no later than 120 days after the filing of the 
47.18 	request for coverage with the executive director shall deliver the cost analysis requested 
47.19 	under subdivision 2 or 3 to, the transfer is approved by both (1) the board of trustees of the 
47.20 	relief association, if one exists, and (2) the governing body. If either the governing body or 
47.21 	the board of trustees of the relief association does not take action to approve the transfer 
47.22 	within 120 days after the filing of the request for coverage, the transfer is not approved.
47.23 	(b) The transfer of coverage to the defined benefit plan is considered approved if, within
47.24 	no later than 120 days ofafter receipt of the cost analysis, the transfer is approved by both 
47.25 	(1) the board of trustees of the relief association, if one exists, and (2) the governing body. 
47.26 	If either the governing body or the board of trustees of the relief association does not take 
47.27 	action to approve the transfer within 120 days ofafter receipt of the cost analysis, the transfer 
47.28 	is not approved.
47.29 	(c) If the transfer is approved, coverage by the plan is effective on the January 1 next 
47.30 	following the date of approval by the last governing body or, if later, the date of approval 
47.31 	by the board of trustees of the relief association.
47.32 		Subd. 6.Joint powers entities. If transfer of coverage to the plan is being requested for 
47.33 	volunteer firefighters that provide services to a fire department operated as or by a joint 
47.34 	powers entity, whenever an election or approval by or delivery to the governing body of a 
48.1 	municipality is required under this section, all municipalities that executed the joint powers 
48.2 	agreement must execute the election or approval or receive delivery, unless the joint powers 
48.3 	agreement specifies another process be followed in order for the action of a joint powers 
48.4 	entity to be effective.

48.5 	EFFECTIVE DATE. This section is effective January 1, 2025.

48.6 	Sec. 27. Minnesota Statutes 2023 Supplement, section 353G.07, is amended to read:
48.7 	353G.07 CERTIFICATION OF SERVICE CREDIT FOR PENSION BENEFIT 
48.8 	ACCRUAL OR CONTRIBUTION ALLOCATION.
48.9 	(a) Annually, by March 31, the fire chief of thea fire department with volunteer 
48.10 	firefighters who are active members of either the lump-sum division or the monthly benefit 
48.11 	division shallretirement plan must certify to the executive director the service credit for 
48.12 	the previous calendar year of each volunteer firefighter rendering active service with the 
48.13 	fire department.
48.14 	(b) The fire chief shall provide to each firefighter rendering active service with the fire 
48.15 	department notification of the amount of service credit rendered by the firefighter for the 
48.16 	calendar year. The service credit notification must be provided to the firefighter 60 days 
48.17 	before its certification to the executive director of the Public Employees Retirement 
48.18 	Association, along with an indicationexplanation of the process for the firefighter to 
48.19 	challenge the fire chief's determination of service credit. If the service credit amount is 
48.20 	challenged in a timely fashion, the fire chief shall hold a hearing on the challenge, accept 
48.21 	and consider any additional pertinent information, and make a final determination of service 
48.22 	credit. The final determination of service credit by the fire chief is not reviewable by the 
48.23 	executive director of the Public Employees Retirement Association or by the board of 
48.24 	trustees of the Public Employees Retirement Association.
48.25 	(c) The service credit certification is an official public document. If a false service credit 
48.26 	certification is filed or if false information regarding service credits is provided, section 
48.27 	353.19 applies.
48.28 	(d) The service credit certification must be expressed as a percentage of a full year of 
48.29 	service during which an active firefighter rendered at least the minimum level and quantity 
48.30 	of fire suppression, emergency response, fire prevention, or fire education duties required 
48.31 	by the fire department under the rules and regulations applicable to the fire department. No 
48.32 	more than one year of service credit may be certified for a calendar year.
49.1 	(e) If a firefighter covered by the retirement plan leaves active firefighting service to 
49.2 	render active military service that is required to be governed by the federal Uniformed 
49.3 	Services Employment and Reemployment Rights Act, as amended, the person must be 
49.4 	certified as providing a full year of service credit in each year of the military service, up to 
49.5 	the applicable limit of the federal Uniformed Services Employment and Reemployment 
49.6 	Rights Act. If the firefighter does not return from the military service in compliance with 
49.7 	the federal Uniformed Services Employment and Reemployment Rights Act, the service 
49.8 	credits applicable to that military service credit period are forfeited and cancel at the end 
49.9 	of the calendar year in which the federal law time limit occurs.

49.10 	EFFECTIVE DATE. This section is effective January 1, 2025.

49.11 	Sec. 28. [353G.075] SERVICE CREDIT FOR VESTING.
49.12 	(a) Annually, the executive director must credit each volunteer firefighter with a year 
49.13 	of service credit for vesting for each year of service credited for benefit accrual or 
49.14 	contribution allocation under section 353G.07.
49.15 	(b) A volunteer firefighter is entitled to receive service credit toward vesting in the 
49.16 	retirement plan for any period of service as a volunteer firefighter, as defined under section 
49.17 	353G.01, subdivision 15, rendered as a firefighter in a fire department in the state that was 
49.18 	not covered by the retirement plan at the time the service was rendered if the firefighter 
49.19 	submits a request to the executive director indicating the number of years and months of 
49.20 	service for which credit is requested and provides documentation in a form acceptable to 
49.21 	the executive director regarding the earlier period of service. The firefighter must submit a 
49.22 	copy of the request and documentation to the fire chief of the fire department to which the 
49.23 	firefighter is currently providing service.
49.24 	(c) The executive director must credit a firefighter with all years of service as a member 
49.25 	of the retirement plan for any participating employer for vesting purposes.

49.26 	EFFECTIVE DATE. This section is effective July 1, 2024.

49.27 	Sec. 29. Minnesota Statutes 2023 Supplement, section 353G.08, subdivision 1, is amended 
49.28 	to read:
49.29 		Subdivision 1.AnnualBiennial funding requirements reports; lump-sum division. (a) 
49.30 	Annually, The executive director shallmust determine the funding requirements offor each 
49.31 	fire department account in the lump-sum division of the statewide volunteer firefighter plan
49.32 	on or before August 1 every other year. The funding requirements computed under this 
50.1 	subdivision must be determined using a mathematical procedure developed and certified 
50.2 	as accurate by the approved actuary retained by the Public Employees Retirement association 
50.3 	and must be based on present value factors using a six percent investment return rate, without 
50.4 	any decrement assumptions. The funding requirementsexecutive director must be certified
50.5 	provide written notice of the funding requirements to the entity or entities associated with 
50.6 	the fire department whose active firefighters are covered by the plan.
50.7 	(b) The overall funding balance of each lump-sumfire department account for the current 
50.8 	calendar year must be determined in the following manner:
50.9 	(1) The total accrued liability for all active and deferred members of the accountfire 
50.10 	department as of December 31 of the current year must be calculated based on the service 
50.11 	credit of active and deferred members as of that date.
50.12 	(2) The total present assets of the fire department account projected to December 31 of 
50.13 	the current year, including receipts by and disbursements from the account anticipated to 
50.14 	occur on or before December 31, must be calculated. To the extent possible, The market
50.15 	executive director must begin phasing in the use of actuarial value of assets must be utilized
50.16 	in making this calculation beginning with the funding reports for 2026.
50.17 	(3) The amount of the total present assets calculated under clause (2) must be subtracted 
50.18 	from the amount of the total accrued liability calculated under clause (1). If the amount of 
50.19 	total presentthe assets exceeds the amount of the total accrued liability, then the account 
50.20 	is considered to have a surplus over full funding. If the amount of the total present assets 
50.21 	is less than the amount of the total accrued liability, then the account is considered to have 
50.22 	a deficit from full funding. If the amount of total present assets is equal to the amount of 
50.23 	the total accrued liability, then the special fundaccount is considered to be fully funded.
50.24 	(c) The financial requirements of each lump-sum accountfire department for the following 
50.25 	calendar year must be determined in the following manner:
50.26 	(1) The total accrued liability for all active and deferred members of the accountfire 
50.27 	department as of December 31 of the calendar year next following the current calendar year 
50.28 	must be calculated based on the service used in the calculation under paragraph (b), clause 
50.29 	(1), increased by one year.
50.30 	(2) The increase in the total accrued liability of the account for the following calendar 
50.31 	year over the total accrued liability of the account for the current year must be calculated.
50.32 	(3) The amount of administrative expenses of the account must be calculated by 
50.33 	multiplying the per-person dollar amount of the administrative expenses for the most recent 
51.1 	prior calendar year by the number of active and deferred firefighters reported to PERAthe 
51.2 	association on the most recent service credit certification form for eachthe account.
51.3 	(4) If the account is fully funded, the financial requirement of the account for the 
51.4 	following calendar year is the total of the amounts calculated under clauses (2) and (3).
51.5 	(5) If the account has a deficit from full funding, the financial requirement of the account 
51.6 	for the following calendar year is the total of the amounts calculated under clauses (2) and 
51.7 	(3) plus an amount equal to one-tenth of the amount of the deficit from full funding of the 
51.8 	account.
51.9 	(6) If the account has a surplus over full funding, the financial requirement of the account 
51.10 	for the following calendar year is the financial requirement of the account calculated as 
51.11 	though the account was fully funded under clause (4) and, if the account has also had a 
51.12 	surplus over full funding during the prior two years, additionally reduced by an amount 
51.13 	equal to one-tenth of the amount of the surplus over full funding of the account.
51.14 	(d) The required contribution of the entity or entities associated with the fire department 
51.15 	whose active firefighters are covered by the lump-sum division is the annual financial 
51.16 	requirements of the lump-sumfire department account of the plan under paragraph (c) 
51.17 	reduced by the amount of any fire state aid payable under chapter 477B or police and 
51.18 	firefighter retirement supplemental state aid payable under section 423A.022 that is 
51.19 	reasonably anticipated to be received by the retirement plan attributable to the entity or 
51.20 	entities during the following calendar year, and an amount of interestinvestment earnings 
51.21 	on the assets projected to be received during the following calendar year calculated at the 
51.22 	rate of six percent per annum. The required contribution must be allocated between the 
51.23 	entities if more than one entity is involved. A reasonable amount of anticipated fire state 
51.24 	aid is an amount that does not exceed the fire state aid actually received in the prior year 
51.25 	multiplied by the factor 1.035.
51.26 	(e) The financial requirement for each fire department account in the lump-sum division 
51.27 	for the second year of the biennial valuation period must be in the amount determined in 
51.28 	paragraph (d) increased by six percent, but no more than the excess, if any, of the amount 
51.29 	determined under paragraph (c), clause (1), less the actual market value of assets in the fire 
51.30 	department account as of that date.
51.31 	(e)(f) The required contribution calculated in paragraph (d) must be paid to the retirement 
51.32 	plan on or before December 31 of the year for which it was calculated. If the contribution 
51.33 	is not received by the plan by December 31, it is payable with interest at an annual compound 
51.34 	rate of six percent from the date due until the date payment is received by the plan. If the 
52.1 	entity does not pay the full amount of the required contribution, the executive director shall 
52.2 	collect the unpaid amount under section 353.28, subdivision 6.

52.3 	EFFECTIVE DATE. This section is effective January 1, 2025.

52.4 	Sec. 30. Minnesota Statutes 2022, section 353G.08, subdivision 2, is amended to read:
52.5 		Subd. 2.Cash flow funding requirement. If the executive director determines that a 
52.6 	fire department account in the lump-sum retirementdivision or athe monthly benefit 
52.7 	retirement account in the statewide volunteer firefighter plandivision has insufficient assets 
52.8 	to meet the service pensions expected to be payable from the account over the succeeding 
52.9 	two years, the executive director shall certify the amount of the potential service pension 
52.10 	shortfall to the municipality or municipalities and the municipality or municipalities shall
52.11 	participating employer, which must make an additional employer contribution to the account 
52.12 	within ten days of the certification. If more than one municipalityparticipating employer 
52.13 	is associated with the account, unless the municipalitiesparticipating employers agree to 
52.14 	and implement a different allocation, the municipalities shallparticipating employers must 
52.15 	allocate the additional employer contribution one-half in proportion to the population of 
52.16 	each municipalityparticipating employer and one-half in proportion to the estimated market 
52.17 	value of the property of each municipality participating employer.

52.18 	EFFECTIVE DATE. This section is effective January 1, 2025.

52.19 	Sec. 31. [353G.082] FUNDING OF FIRE DEPARTMENT ACCOUNTS AND 
52.20 	ANNUAL ALLOCATION TO INDIVIDUAL ACCOUNTS IN THE DEFINED 
52.21 	CONTRIBUTION PLAN.
52.22 		Subdivision 1.Fire department accounts and individual accounts established. (a) 
52.23 	The executive director must establish a fire department account for each participating 
52.24 	employer in the defined contribution plan that consists of individual accounts for the 
52.25 	volunteer firefighters providing firefighting services to the participating employer.
52.26 	(b) The executive director must establish an individual account within each fire 
52.27 	department account for each volunteer firefighter covered by the defined contribution plan, 
52.28 	to which the executive director must credit an allocation of state aid, contributions, forfeitures, 
52.29 	and investment earnings and from which the executive director must deduct investment 
52.30 	losses and administrative expenses.
53.1 		Subd. 2.State aid and contributions by the participating employer. Notwithstanding 
53.2 	any law to the contrary, the executive director must deposit in each fire department account 
53.3 	in the defined contribution plan for allocation to individual accounts under subdivision 3:
53.4 	(1) any fire state aid payable under chapter 477B or police and firefighter retirement 
53.5 	supplemental state aid payable under section 423A.022 on behalf of the participating 
53.6 	employer with which the fire department is associated; and
53.7 	(2) any contributions from the participating employer with which the fire department is 
53.8 	associated.
53.9 		Subd. 3.Annual allocation and deduction in equal shares. (a) As of the end of each 
53.10 	calendar year, the executive director must credit to the individual account of each firefighter 
53.11 	providing services to a fire department and who did not leave firefighting service with the 
53.12 	fire department during the calendar year an equal share of:
53.13 	(1) any fire state aid payable under chapter 477B and police and firefighter retirement 
53.14 	supplemental state aid payable under section 423A.022 received by the retirement fund that 
53.15 	is attributable to the participating employer associated with the fire department as soon as 
53.16 	practicable after the aid is received by the retirement fund;
53.17 	(2) any contributions made by the participating employer to the retirement fund for the 
53.18 	benefit of the volunteer firefighters providing firefighting services to the participating 
53.19 	employer as soon as practicable after the contribution is received by the retirement fund; 
53.20 	and
53.21 	(3) any forfeiture under section 353G.10, subdivision 4, attributable to a former volunteer 
53.22 	firefighter of the fire department.
53.23 	(b) As of the end of each calendar year, the executive director must deduct an equal 
53.24 	share of administrative expenses from each individual account.
53.25 	(c) As of the end of the calendar year, the executive director must allocate to the 
53.26 	individual account of a volunteer firefighter who has less than a full year of service a 
53.27 	fractional share of the amount that would have been allocated to the individual account for 
53.28 	a full year of service. The fractional amount is equal to the number of months of service 
53.29 	divided by twelve. A month will be credited if the volunteer firefighter was credited with 
53.30 	at least 16 days of service.
53.31 		Subd. 4.Investment earnings and losses. As of the end of each calendar year or more 
53.32 	frequently, if determined necessary by the executive director to make distributions or for 
53.33 	other purposes, the executive director must:
54.1 	(1) credit investment earnings on the assets of each fire department account to each 
54.2 	individual account in proportion to the share of the assets of the fire department account 
54.3 	credited to the individual account; and
54.4 	(2) deduct investment losses on the assets of each fire department account from each 
54.5 	individual account in proportion to the share of the assets of the fire department account 
54.6 	credited to the individual account.

54.7 	EFFECTIVE DATE. This section is effective January 1, 2025.

54.8 	Sec. 32. [353G.085] AUTHORIZED DISBURSEMENTS.
54.9 	The assets of the retirement fund may be disbursed only as a distribution of lump-sum 
54.10 	retirement benefits, monthly retirement benefits, or individual accounts or for:
54.11 	(1) administrative expenses of the retirement plan;
54.12 	(2) investment expenses of the retirement fund;
54.13 	(3) survivor benefits; and
54.14 	(4) a transfer of assets under section 353G.17.

54.15 	EFFECTIVE DATE. This section is effective January 1, 2025.

54.16 	Sec. 33. Minnesota Statutes 2023 Supplement, section 353G.09, subdivision 1, is amended 
54.17 	to read:
54.18 		Subdivision 1.Entitlement. (a) A member with at least one year of service credit with 
54.19 	a fire department with active firefighters that are covered by the plan is entitled to a retirement 
54.20 	benefit as defined in subdivision 1a from the fire department's account in the plan if the 
54.21 	member:
54.22 	(1) has separated from active service with the fire department for at least 30 days;
54.23 	(2) has attained the normal retirement age of at least 50 years;
54.24 	(3) has satisfied the minimum service requirement in paragraph (b) or (c), as applicable; 
54.25 	and
54.26 	(4) applies in a manner prescribed by the executive director.
54.27 	(b) If the member is a member of the lump-sum division or the defined contribution 
54.28 	plan, the member satisfies the minimum service requirement if the member is at least 40 
54.29 	percent vested as determined under subdivision 2.
55.1 	(c) If the member is a member of the monthly benefit division, the member satisfies the 
55.2 	minimum service requirement if the member has completed at least the minimum number 
55.3 	of years of service specified in the retirement benefit plan document applicable to the 
55.4 	member.

55.5 	EFFECTIVE DATE. This section is effective January 1, 2025.

55.6 	Sec. 34. Minnesota Statutes 2023 Supplement, section 353G.09, subdivision 1a, is amended 
55.7 	to read:
55.8 		Subd. 1a.Retirement benefit. (a) A volunteer firefighter who is entitled to a service 
55.9 	pensionretirement benefit under subdivision 1 must receive a retirement benefit under 
55.10 	subdivision 1, paragraph (a) or (b), (c), or (d), as applicable.
55.11 	(b) The retirement benefit of a member of the lump-sum division is equal to the number 
55.12 	of years of service credit certified under section 353G.07 for the member, multiplied by the 
55.13 	service pensionbenefit level applicable to the member under section 353G.11, multiplied 
55.14 	by the member's vested percentage under subdivision 2.
55.15 	(c) The retirement benefit of a member of the monthly benefit division is equal to the 
55.16 	number of years of service credit certified under section 353G.07 for the member, multiplied 
55.17 	by the service pensionbenefit level applicable to the member under section 353G.112, 
55.18 	multiplied by the member's vested percentage under subdivision 2.
55.19 	(d) The retirement benefit of a member of the defined contribution plan is equal to the 
55.20 	balance in the member's account in the plan as of the end of the month after the month in 
55.21 	which the executive director receives the application for a distribution of the retirement 
55.22 	benefit multiplied by the member's vested percentage under subdivision 2.

55.23 	EFFECTIVE DATE. This section is effective January 1, 2025.

55.24 	Sec. 35. Minnesota Statutes 2023 Supplement, section 353G.09, subdivision 2, is amended 
55.25 	to read:
55.26 		Subd. 2.Vested percentage. A member of the plan has a nonforfeitable right to a 
55.27 	retirement benefit, up to the percent vested. The member's vested percentage is determined 
55.28 	under paragraph (a), (b), or (c), as applicable.
55.29 	(a) If the member is a member of the lump-sum division and employed in a fire 
55.30 	department that joined the plan before January 1, 2023, the member's vested percentage is 
55.31 	equal to the percentage that corresponds to the number of years of vesting service credit, 
55.32 	as follows:

56.1	Completed years of service credit
		Vested percentage
	
56.2	less than 5
		0 percent
	
56.3	5
		40 percent
	
56.4	6
		44 percent
	
56.5	7
		48 percent
	
56.6	8
		52 percent
	
56.7	9
		56 percent
	
56.8	10
		60 percent
	
56.9	11
		64 percent
	
56.10	12
		68 percent
	
56.11	13
		72 percent
	
56.12	14
		76 percent
	
56.13	15
		80 percent
	
56.14	16
		84 percent
	
56.15	17
		88 percent
	
56.16	18
		92 percent
	
56.17	19
		96 percent
	
56.18 	(b) If the member is a member of the lump-sum division or the defined contribution plan 
56.19 	and employed in a fire department that joinedjoins the plan on or after January 1, 2023, the 
56.20 	member's vested percentage is equal to the percentage determined by applying the vesting 
56.21 	schedule selected in the request for coverage under section 353G.05, subdivision 1a 1c, 
56.22 	taking into account years of vesting service credit.
56.23 	(c) If the member is a member of the monthly benefit division and has completed 20 
56.24 	years of service as a member of the plan, the member is 100 percent vested. If the member 
56.25 	has completed less than 20 years of service as a member of the plan, the member's vested 
56.26 	percentage is equal to the percentage determined under the retirement benefit plan document 
56.27 	applicable to the member.

56.28 	EFFECTIVE DATE. This section is effective January 1, 2025.

56.29 	Sec. 36. Minnesota Statutes 2023 Supplement, section 353G.10, is amended to read:
56.30 	353G.10 DEFERREDLEAVING FIREFIGHTING SERVICE PENSION AMOUNT
56.31 	BEFORE REACHING NORMAL RETIREMENT AGE.
56.32 		Subdivision 1.Entitlement to a retirement benefit, to the extent vested. A person 
56.33 	who was an active member of a fire department covered by either the lump-sum division 
56.34 	or the monthly benefit division of the plan who has separatedIf a volunteer firefighter 
57.1 	separates from active firefighting service for at leastbefore reaching normal retirement age, 
57.2 	the volunteer firefighter is entitled to a distribution of the volunteer firefighter's retirement 
57.3 	benefit under section 353G.09, subdivision 1a, as follows:
57.4 	(1) if the volunteer firefighter is covered by the defined contribution plan, the volunteer 
57.5 	firefighter is entitled to a distribution of the retirement benefit as soon as practicable after 
57.6 	the volunteer firefighter submits an application for a distribution;
57.7 	(2) if the volunteer firefighter is covered by the lump-sum division of the defined benefit 
57.8 	plan, the volunteer firefighter is entitled to a distribution of the volunteer firefighter's 
57.9 	retirement benefit after the volunteer firefighter has reached age 50 and as soon as practicable 
57.10 	after the volunteer firefighter submits an application for a distribution; and
57.11 	(3) if the volunteer firefighter is covered by the monthly benefit division of the defined 
57.12 	benefit plan, the volunteer firefighter is entitled to begin a distribution of the volunteer 
57.13 	firefighter's retirement benefit after the volunteer firefighter has reached age 50 and as soon 
57.14 	as practicable after the volunteer firefighter submits an application for a distribution.
57.15 		Subd. 2.Application. No earlier than 30 days and who has completed at least five years 
57.16 	of service credit, but has not attained the age of 50 years, is entitled to a deferred service 
57.17 	pension on or after attaining the age of 50 years and applyingafter leaving active firefighting 
57.18 	service, a volunteer firefighter entitled to a distribution under subdivision 1 must submit an 
57.19 	application to the executive director in a manner specified by the executive director for the 
57.20 	service pension. The service pension payable is the nonforfeitable percentage of the service 
57.21 	pension under section 353G.09, subdivision 2, and is payable.
57.22 		Subd. 3.Retirement benefit during period of deferral. (a) A volunteer firefighter's 
57.23 	account in the defined contribution plan must continue to be invested with the rest of the 
57.24 	assets of the individual accounts in the volunteer firefighter's fire department account and, 
57.25 	until the account is distributed, credited with investment earnings or reduced by investment 
57.26 	losses under section 353G.082, subdivision 4, and a deduction taken for an equal share of 
57.27 	the administrative expenses under section 353G.082, subdivision 3, paragraph (b), until the 
57.28 	volunteer firefighter's account is distributed.
57.29 	(b) A volunteer firefighter's retirement benefit in the defined benefit plan must be retained 
57.30 	in the defined benefit plan without any interest on or increase in the service pension over
57.31 	during the period of deferral.
57.32 		Subd. 4.Forfeiture of accounts of volunteer firefighters who end service. (a) The 
57.33 	portion of an account or pension benefit that is not vested is forfeited as of the earliest of:
58.1 	(1) the last day of the calendar year that includes the fifth anniversary of the date on 
58.2 	which the volunteer firefighter ended service;
58.3 	(2) immediately upon receiving a lump-sum payment of the entire vested portion of the 
58.4 	account or pension benefit; or
58.5 	(3) immediately upon receiving the final payment consisting of the entire amount 
58.6 	remaining in the account or pension benefit that is vested.
58.7 	(b) A volunteer firefighter with a zero percent vested interest in the account or pension 
58.8 	benefit is deemed to have received a distribution on the last day of service, and the account 
58.9 	or pension benefit must immediately be forfeited.
58.10 	(c) Amounts forfeited remain forfeited and must not be reinstated upon the resumption 
58.11 	of service with the fire department or any other fire department covered by the retirement 
58.12 	plan.

58.13 	EFFECTIVE DATE. This section is effective January 1, 2025.

58.14 	Sec. 37. Minnesota Statutes 2023 Supplement, section 353G.11, subdivision 2, is amended 
58.15 	to read:
58.16 		Subd. 2.Benefit level changes in the lump-sum division level selection of the defined 
58.17 	benefit plan. (a) A fire department's fire chief or the governing body operating a fire 
58.18 	department may request an increase in the benefit level as provided in this subdivision.
58.19 	(b) The fire chief or governing body must request a cost estimate from the executive 
58.20 	director of an increase in the service pension level applicable to the active firefighters of 
58.21 	the fire department may be requested by: (1) the fire chief of a department that has active 
58.22 	membership covered by the lump-sum division; or (2) the governing body operating a fire 
58.23 	department that has active membership covered by the lump-sum division.
58.24 	(c) The executive director must prepare the cost estimate using a procedure certified as 
58.25 	accurate by the approved actuary retained by the association.
58.26 	(d) Within 120 days of the receipt ofafter receiving the cost estimate prepared byfrom 
58.27 	the executive director using a procedure certified as accurate by the approved actuary retained 
58.28 	by the Public Employees Retirement Association, the governing body may approve the 
58.29 	service pensionbenefit level change, effective for January 1 of the following calendar year 
58.30 	unless the governing body specifies in the approval document an effective date that is 
58.31 	January 1 of the second year following the approval date. If the approval occurs after April 
58.32 	30, the required municipal contribution for the following calendar year must be recalculated 
59.1 	and the results reported to the governing body. If not approved within 120 days of the receipt 
59.2 	of the cost estimate, the service pensionbenefit level change is considered to have been 
59.3 	disapproved.

59.4 	EFFECTIVE DATE. This section is effective January 1, 2025.

59.5 	Sec. 38. Minnesota Statutes 2023 Supplement, section 353G.11, is amended by adding a 
59.6 	subdivision to read:
59.7 		Subd. 2a.Procedure for changing benefit level. (a) The fire chief of a fire department 
59.8 	that has an active membership that is covered by the monthly benefit retirement division of 
59.9 	the plan may initiate the process of modifying the retirement benefit plan document under 
59.10 	this section.
59.11 	(b) The modification procedure is initiated when the applicable fire chief files with the 
59.12 	executive director of the Public Employees Retirement Association a written summary of 
59.13 	the desired benefit plan document modification, the proposed benefit plan document 
59.14 	modification language, a written request for the preparation of an actuarial cost estimate 
59.15 	for the proposed benefit plan document modification, and payment of the estimated cost of 
59.16 	the actuarial cost estimate.
59.17 	(c) Upon receipt of the modification request and related documents, the executive director 
59.18 	shall review the language of the proposed benefit plan document modification and, if a 
59.19 	clarification is needed in the submitted language, shall inform the fire chief of the necessary 
59.20 	clarification. Once the proposed benefit plan document modification language has been 
59.21 	clarified by the fire chief and resubmitted to the executive director, the executive director 
59.22 	shall arrange for the approved actuary retained by the Public Employees Retirement 
59.23 	Association to prepare a benefit plan document modification cost estimate under the 
59.24 	applicable provisions of section 356.215 and of the standards for actuarial work adopted 
59.25 	by the Legislative Commission on Pensions and Retirement. Upon completion of the benefit 
59.26 	plan document modification cost estimate, the executive director shall forward the estimate 
59.27 	to the fire chief who requested it and to the chief financial officer of the municipality or 
59.28 	entity with which the fire department is primarily associated.
59.29 	(d) The fire chief, upon receipt of the cost estimate, shall circulate the cost estimate with 
59.30 	the active firefighters in the fire department and shall take reasonable steps to provide the 
59.31 	estimate results to any affected retired members of the fire department and their beneficiaries. 
59.32 	The chief financial officer of the municipality or entity associated with the fire department 
59.33 	shall present the proposed modification language and the cost estimate to the governing 
60.1 	body of the municipality or entity for its consideration at a public hearing held for that 
60.2 	purpose.
60.3 	(e) If the governing body of the municipality or entity approves the modification language, 
60.4 	the chief administrative officer of the municipality or entity shall notify the executive director 
60.5 	of the Public Employees Retirement Association of that approval. The benefit plan document 
60.6 	modification is effective on the January 1 following the date of filing the approval with the 
60.7 	Public Employees Retirement Association.

60.8 	EFFECTIVE DATE. This section is effective January 1, 2025.

60.9 	Sec. 39. [353G.114] ANCILLARY BENEFITS AND SUPPLEMENTAL BENEFITS.
60.10 	(a) Except as provided under paragraph (b) and sections 353G.115 and 353G.12, no 
60.11 	disability, death, funeral, or other ancillary benefit beyond a retirement benefit is payable 
60.12 	from the lump-sum division of the defined benefit plan or the defined contribution plan.
60.13 	(b) Any member or survivor of a deceased member who receives a lump-sum distribution 
60.14 	of the member's retirement benefit from the lump-sum division of the defined benefit plan 
60.15 	or the defined contribution plan is entitled to a supplemental benefit under section 424A.10.

60.16 	EFFECTIVE DATE. This section is effective January 1, 2025.

60.17 	Sec. 40. Minnesota Statutes 2023 Supplement, section 353G.115, is amended to read:
60.18 	353G.115 DISABILITY BENEFIT COVERAGE; AUTHORITY FOR CASUALTY
60.19 	DISABILITY INSURANCE.
60.20 	(a) Except as provided in paragraph (b) or (c), no disability benefit is payable from the 
60.21 	statewideretirement plan.
60.22 	(b) If the board approves the arrangement, disability coverage for the lump-sum division 
60.23 	of the statewide plan members may be provided through a group disability insurance policy 
60.24 	obtained from an insurance company licensed to do business in this state. The lump-sum 
60.25 	retirement account of the statewide volunteer firefighter plan is authorized to pay the premium 
60.26 	for the disability insurance authorized by this paragraph. The proportional amount of the 
60.27 	total annual disability insurance premium must be added to the required contribution amount 
60.28 	determined under section 353G.08.
60.29 	(c)(b) The disability benefit coverage for a fire department in the monthly benefit
60.30 	division is the disability service pension amount specified in the retirement benefit plan 
60.31 	document applicable to the fire department, applicable former volunteer firefighter relief 
61.1 	association affiliated with the fire department and in effect as of the last day before the date 
61.2 	on which retirement coverage transferred to the statewide volunteer firefighterretirement 
61.3 	plan, subject to all conditions and limitations in the disability service pension specified 
61.4 	therein.

61.5 	EFFECTIVE DATE. This section is effective January 1, 2025.

61.6 	Sec. 41. Minnesota Statutes 2023 Supplement, section 353G.12, subdivision 2, is amended 
61.7 	to read:
61.8 		Subd. 2.Lump-sum plan division; survivor benefit amount. The amount of the 
61.9 	survivor benefit for the lump-sum division is the amount of the lump-sum service pension
61.10 	retirement benefit that would have been payable to the member of the lump-sum division 
61.11 	on the date of death if the member had been age 50 or older on that date.

61.12 	EFFECTIVE DATE. This section is effective January 1, 2025.

61.13 	Sec. 42. Minnesota Statutes 2023 Supplement, section 353G.12, is amended by adding a 
61.14 	subdivision to read:
61.15 		Subd. 4.Defined contribution plan; survivor benefit amount. The amount of the 
61.16 	survivor benefit for the defined contribution plan is the amount credited to the individual 
61.17 	account of the deceased member on the date of death.

61.18 	EFFECTIVE DATE. This section is effective January 1, 2025.

61.19 	Sec. 43. Minnesota Statutes 2023 Supplement, section 353G.14, is amended to read:
61.20 	353G.14 DISTRIBUTIONS FROM LUMP-SUM DIVISION.
61.21 		Subdivision 1.Lump sum. Unless a volunteer firefighter requests an annuity under 
61.22 	subdivision 2, The executive director must distribute a the retirement benefit under section 
61.23 	353G.09, subdivision 1a, of a member of the lump-sum service pension division of the 
61.24 	defined benefit plan or the defined contribution plan in the form of a single lump-sum 
61.25 	payment from the account of each fire department covered by the plan in which the volunteer 
61.26 	firefighter earned a retirement benefit under section 353G.09.
61.27 		Subd. 2.Annuity Monthly payments. The executive director may purchase an annuity 
61.28 	contract on behalf of a volunteer firefighter retiring from the lump-sum division of the plan 
61.29 	with a total premium payment in an amount equal to the lump-sum service pension payable 
61.30 	under section 353G.09 if the purchase was requested by the volunteer firefighter in a manner 
61.31 	prescribed by the executive director. The annuity contract must be purchased from an 
62.1 	insurance carrier that is licensed to do business in this state. If purchased, the annuity contract 
62.2 	is in lieu of any service pension or other benefit from the lump-sum plan of the plan. The 
62.3 	annuity contract may be purchased at any time after the volunteer firefighter discontinues 
62.4 	active service, but the annuity contract must stipulate that no annuity amounts are payable 
62.5 	before the volunteer firefighter attains the age of 50. The executive director must distribute 
62.6 	the retirement benefit under section 353G.09, subdivision 1a, of a member of the monthly 
62.7 	division of the defined benefit plan in the form of monthly payments as authorized under 
62.8 	the retirement benefit plan document for the fire department in which the member is 
62.9 	employed or for which the member provides services.

62.10 	EFFECTIVE DATE. This section is effective January 1, 2025.

62.11 	Sec. 44. [353G.19] CONVERSION TO DEFINED CONTRIBUTION PLAN.
62.12 		Subdivision 1.Authority to initiate conversion. (a) A participating employer associated 
62.13 	with a fire department covered by the defined benefit plan, including an entity previously 
62.14 	affiliated with a defined benefit relief association when the entity made a request for coverage 
62.15 	by the defined contribution plan under section 353G.05, subdivision 1b, paragraph (c), may 
62.16 	convert to coverage by the defined contribution plan in accordance with this section.
62.17 	(b) Conversion from coverage by the defined benefit plan to coverage by the defined 
62.18 	contribution plan consists of:
62.19 	(1) a resolution by the governing body of the participating employer;
62.20 	(2) notice to all former and active volunteer firefighters of the fire department;
62.21 	(3) full vesting of all active and former volunteer firefighters with an accrued benefit in 
62.22 	the defined benefit plan attributable to service with the fire department; and
62.23 	(4) allocation of surplus over full funding, if any, to individual accounts in the fire 
62.24 	department's new account in the defined contribution plan.
62.25 	(c) For an entity previously affiliated with a defined benefit relief association when the 
62.26 	entity made a request for coverage by the defined contribution plan under section 353G.05, 
62.27 	subdivision 1b, paragraph (c), a conversion must occur under paragraph (b) immediately 
62.28 	after coverage by the retirement plan of the entity's fire department and the entity's volunteer 
62.29 	firefighters takes effect.
62.30 		Subd. 2.Resolutions by the governing body. To initiate a conversion, the governing 
62.31 	body of the participating employer must file with the executive director at least 30 days 
62.32 	before the end of a calendar year:
63.1 	(1) a resolution that states that the fire department elects to participate in the defined 
63.2 	contribution plan effective on conversion effective date, which is the first day of the next 
63.3 	calendar year; and
63.4 	(2) if the fire department account had a deficit from full funding as defined under section 
63.5 	353G.08, subdivision 1, paragraph (c), or the special fund of the defined benefit relief 
63.6 	association had a deficit from full funding as defined in section 424A.092, subdivision 3, 
63.7 	paragraph (b), a resolution approving a contribution to the retirement plan in the amount 
63.8 	necessary to eliminate the deficit, which is to be paid within 30 days of the filing of the 
63.9 	resolution or in installments over three years, with the first payment to be made within 30 
63.10 	days of the filing of the resolution.
63.11 		Subd. 3.Notice to participants. The participating employer must provide notice to all 
63.12 	active and former volunteer firefighters in the fire department at least 30 days before the 
63.13 	conversion effective date. The notice must include:
63.14 	(1) an explanation that the plan is converting from a defined benefit plan to a defined 
63.15 	contribution plan, including definitions of those terms, on the conversion effective date and 
63.16 	that the active and former volunteer firefighters will become fully vested in their accrued 
63.17 	benefit as of the conversion effective date;
63.18 	(2) a summary of the terms of the defined contribution plan;
63.19 	(3) a section tailored to each volunteer firefighter that provides an estimate of the present 
63.20 	value of the participant's fully vested accrued benefit and the calculation that resulted in 
63.21 	that value;
63.22 	(4) an estimate of any anticipated surplus and an explanation of the allocation of the 
63.23 	surplus; and
63.24 	(5) contact information for the chief administrative officer or chief financial officer of 
63.25 	the participating employer and the designated staff member of the retirement plan who will 
63.26 	answer questions and directions to a website.
63.27 		Subd. 4.Full vesting and determination of accrued benefit. (a) On the conversion 
63.28 	effective date, each active or former volunteer firefighter with a retirement benefit under 
63.29 	the defined benefit plan, except any retiree in pay status who is receiving a monthly benefit, 
63.30 	becomes 100 percent vested as of the conversion effective date in the firefighter's retirement 
63.31 	benefit, without regard to the number of years of vesting service credit.
64.1 	(b) The executive director must determine the present value of each active or former 
64.2 	firefighter's accrued benefit as of the conversion effective date, taking into account the full 
64.3 	vesting requirement under paragraph (a).
64.4 		Subd. 5.Surplus over full funding. If the fire department account has a surplus over 
64.5 	full funding, as defined under section 353G.08, subdivision 1, paragraph (c), the executive 
64.6 	director must allocate the surplus over full funding to the individual account of each active 
64.7 	and former volunteer firefighter, except any former volunteer firefighter receiving an annuity, 
64.8 	in the same proportion that the volunteer firefighter's accrued benefit bears to the total 
64.9 	accrued benefits of all active and former volunteer firefighters.
64.10 		Subd. 6.Distribution to former volunteer firefighters in pay status. (a) If any former 
64.11 	volunteer firefighter or beneficiary is receiving an annuity, the executive director must 
64.12 	determine the present value of the remaining payments to the former volunteer firefighter 
64.13 	or beneficiary and offer the former volunteer firefighter or beneficiary:
64.14 	(1) continued payments in the same monthly amount; or
64.15 	(2) an immediate lump-sum distribution of the present value amount.
64.16 	(b) The offer of an immediate lump-sum distribution must include an offer to the former 
64.17 	volunteer firefighter or beneficiary to elect a direct rollover of the amount to an eligible 
64.18 	retirement plan as permitted under section 356.635, subdivisions 3 to 7, if the distribution 
64.19 	is an eligible rollover distribution as defined in section 356.635, subdivisions 4 and 5.
64.20 		Subd. 7.Prohibition against reduction in accrued benefit. In no event may the value 
64.21 	of a volunteer firefighter's individual account in the defined contribution plan be less as of 
64.22 	the day following the conversion effective date than the present value of the volunteer 
64.23 	firefighter's accrued benefit as of the day before the conversion effective date.

64.24 	EFFECTIVE DATE. This section is effective January 1, 2026.

64.25 	Sec. 45. REVISOR INSTRUCTION.
 64.26 	The revisor of statutes shall change the following terms wherever the terms appear in 
64.27 	Minnesota Statutes, chapter 353G, unless the context indicates that the previous term should 
64.28 	remain. The revisor of statutes shall also make grammatical changes related to the changes 
64.29 	in terms:
64.30 	(1) "Public Employees Retirement Association" to "association";
64.31 	(2) "independent nonprofit firefighting corporation" to "firefighting corporation"; and
64.32 	(3) "monthly benefit division" to "monthly division."

65.1 	Sec. 46. REPEALER.
 65.2 	(a) Minnesota Statutes 2022, section 353G.01, subdivision 10, is repealed.
65.3 	(b) Minnesota Statutes 2023 Supplement, sections 353G.01, subdivisions 7a and 8a; 
65.4 	353G.02, subdivision 6; 353G.08, subdivision 3; 353G.11, subdivisions 1, 1a, 3, and 4; 
65.5 	353G.112; and 353G.121, are repealed.

65.6 	EFFECTIVE DATE. This section is effective January 1, 2025.

65.7 	ARTICLE 4
65.8 	PUBLIC EMPLOYEES RETIREMENT ASSOCIATION

65.9 	Section 1. Minnesota Statutes 2022, section 353.028, subdivision 1, is amended to read:
65.10 		Subdivision 1.Definitions. (a) For purposes of this section, each of the terms in this 
65.11 	subdivision has the meaning indicated.
65.12 	(b) "City manager" means:
65.13 	(1) a person who is duly appointed to and is holding the position of city manager in a 
65.14 	Plan B statutory city or in a home rule city operating under the "council-manager" form of 
65.15 	government,; or
65.16 	(2) a person who is appointed to and is holding the position of chief administrative officer 
65.17 	of a home rule charter city or a statutory city under a charter provision, ordinance, or 
65.18 	resolution establishing such a position and prescribing its duties and responsibilities.
65.19 	(c) "Governing body" means the city council of the city employing the city manager.
65.20 	(d) "Election" means the election described in subdivision 2.
65.21 	(e) "First employed" means a city manager employed by a city who, prior to employment 
65.22 	as a city manager, has not been an employee in any position covered by any retirement plan 
65.23 	administered by the association to which the city contributed or by any supplemental pension 
65.24 	or deferred compensation plan under section 356.24 sponsored by the city.

65.25 	EFFECTIVE DATE. This section is effective August 1, 2024.

65.26 	Sec. 2. Minnesota Statutes 2022, section 353.028, subdivision 2, is amended to read:
65.27 		Subd. 2.Election. (a) A city manager first employed by a city may electmake a onetime, 
65.28 	irrevocable election to be excluded from membership in the general employees retirement 
65.29 	plan of the Public Employees Retirement association. The election of exclusion must be 
65.30 	made within six months30 days following the commencement of employment, must be 
66.1 	made in writing on a form prescribed by the executive director, and must be approved by 
66.2 	a resolution adopted by the governing body of the city. The election of exclusion is not 
66.3 	effective until it is filed with the executive director. Membership of a city manager in the 
66.4 	general employees retirement plan ceases on the date the written election is received by the 
66.5 	executive director or upon a later date specified. Employee and employer contributions 
66.6 	made during the first 30 days of employment on behalf of a person exercising the option to 
66.7 	be excluded from membership under this sectionparagraph must be refunded or credited 
66.8 	in accordance with section 353.27, subdivision 7.
66.9 	(b) A city manager who has elected exclusion under this subdivision may elect to revoke 
66.10 	that action by filing a written notice with the executive director. The notice must be on a 
66.11 	form prescribed by the executive director and must be approved by a resolution of the 
66.12 	governing body of the city. Membership of the city manager in the association resumes 
66.13 	prospectively from the date of the first day of the pay period for which contributions were 
66.14 	deducted or, if pay period coverage dates are not provided, the date on which the notice of 
66.15 	revocation or contributions are received in the office of the association, provided that the 
66.16 	notice of revocation is received by the association within 60 days of the receipt of 
66.17 	contributions previously been an employee in any position covered by any retirement plan 
66.18 	administered by the association to which the city contributed or by any supplemental pension 
66.19 	or deferred compensation plan under section 356.24 sponsored by the city is not eligible to 
66.20 	make the election under paragraph (a).
66.21 	(c) An election under paragraph (b) is irrevocable. Any election under paragraph (a) or 
66.22 	(b) must include a statement that the individual will not seek authorization to purchase 
66.23 	service credit for any period of excluded service.

66.24 	EFFECTIVE DATE. This section is effective August 1, 2024.

66.25 	Sec. 3. Minnesota Statutes 2022, section 353.028, subdivision 3, is amended to read:
66.26 		Subd. 3.Deferred compensation; city contribution. (a) If an election of exclusion 
66.27 	under subdivision 2 is made, and if the city manager and the governing body of the city 
66.28 	additionally agree in writing that the additional compensation is to be deferred and is to be 
66.29 	contributed on behalf of the city manager to a deferred compensation program whichthat 
66.30 	meets the requirements of section 457 of the Internal Revenue Code of 1986, as amended, 
66.31 	and section 356.24, the governing body may compensate the city manager, in addition to 
66.32 	the salary allowed under any limitation imposed on salaries by law or charter, in an amount 
66.33 	equal to the employer contribution whichthat would be required by section 353.27, 
66.34 	subdivision 3, if the city manager were a member of the general employees retirement plan.
67.1 	(b) Alternatively, if an election of exclusion under subdivision 2 is made, the city manager 
67.2 	and the governing body of the city may agree in writing that the equivalent employer 
67.3 	contribution to the contribution under section 353.27, subdivision 3, be contributed by the 
67.4 	city to the defined contribution plan of the Public Employees Retirement Association under 
67.5 	chapter 353D. Any agreement under this paragraph must be entered into within 30 days 
67.6 	following the commencement of employment.

67.7 	EFFECTIVE DATE. This section is effective August 1, 2024.

67.8 	Sec. 4. Minnesota Statutes 2022, section 353.028, subdivision 5, is amended to read:
67.9 		Subd. 5.Election; Other employment. If a city manager who has made an election to 
67.10 	be excluded under subdivision 2 subsequently accepts employment in another governmental 
67.11 	subdivision or subsequently accepts employmentin a position other than as a city manager 
67.12 	in the same city, the election is rescinded on the effective date of employment.

67.13 	EFFECTIVE DATE. This section is effective August 1, 2024.

67.14 	Sec. 5. Minnesota Statutes 2022, section 353.33, subdivision 7, is amended to read:
67.15 		Subd. 7.Partial reemployment Limitation on disability benefit payments. (a) If, 
67.16 	following a work or non-work-related injury or illness, a disabled personmember who 
67.17 	remains totally and permanently disabled as defined in section 353.01, subdivision 19, has 
67.18 	incomeearnings from employment that is not substantial gainful activity and the rate of 
67.19 	earnings from that employment are less than, the amount of the member's disability benefit 
67.20 	must be reduced as described in paragraph (b) if the total of the disability benefit and earnings 
67.21 	exceeds the greater of:
67.22 	(1) the base monthly salary rate the member had been receiving at the date of disability;
67.23 	or
67.24 	(2) the base monthly salary rate currently paid by the employing governmental subdivision 
67.25 	for similar positions similar to the employment position held by the disabled person 
67.26 	immediately before becoming disabled, whichever is greater, the executive director shall 
67.27 	continue.
67.28 	(b) If paragraph (a) applies, the member's disability benefit in an amount that, when 
67.29 	added to the earnings and any workers' compensation benefit, doesmust be reduced until 
67.30 	the disability benefit plus the monthly earnings from employment do not exceed the salary 
67.31 	rate at the date of disability or the salary currently paid for positions similar to the 
68.1 	employment position held by the disabled person immediately before becoming disabled, 
68.2 	whichever is higher greater of the salaries described in paragraph (a), clause (1) or (2).
68.3 	The disability benefit under this subdivision may not exceed the disability benefit 
68.4 	originally allowed, plus any postretirement adjustments payable after December 31, 1988, 
68.5 	in accordance with Minnesota Statutes 2008, section 11A.18, subdivision 10, or Minnesota 
68.6 	Statutes 2008, section 356.41, through January 1, 2009, and thereafter as provided in section 
68.7 	356.415. No deductions for the retirement fund may be taken from the salary of a disabled 
68.8 	person who is receiving a disability benefit as provided in this subdivision.

68.9 	EFFECTIVE DATE. This section is effective January 1, 2025.

68.10 	Sec. 6. Minnesota Statutes 2022, section 353.33, subdivision 7a, is amended to read:
68.11 		Subd. 7a.Trial work period. (a) This subdivision applies only to the Public Employees 
68.12 	Retirement Association general employees retirement plan.
68.13 	(b) If, following a work or non-work-related injury or illness, a disabled member receiving 
68.14 	disability benefits attempts to return to work for theirthe member's previous public employer 
68.15 	or attempts to return to a similar position with another public employer, on a full-time or 
68.16 	less than full-time basis, the Public Employees Retirement association shallmust continue 
68.17 	paying the disability benefit for a period not to exceed six months. The disability benefit 
68.18 	must continue in an amount that, when added to the subsequent employment earnings and 
68.19 	workers' compensation benefit, does not exceed the base monthly salary the member had 
68.20 	been receiving at the date of disability or the base monthly salary rate currently paid for 
68.21 	similar positions, whichever is higher.
68.22 	(c) No deductions for the general employees retirement plan may be taken from the 
68.23 	salary of a disabled person who is attempting to return to work under this provision unless 
68.24 	the member waives further disability benefits.
68.25 	(d) A member only may return to employment and continue disability benefit payments 
68.26 	once while receiving disability benefits from the general employees retirement plan
68.27 	administered by the Public Employees Retirement Association.

68.28 	EFFECTIVE DATE. This section is effective January 1, 2025.

68.29 	Sec. 7. Minnesota Statutes 2023 Supplement, section 353.335, subdivision 1, is amended 
68.30 	to read:
68.31 		Subdivision 1.Reemployment earnings reporting required. Unless waived by the 
68.32 	executive director, a disability benefit recipient must report all earnings from reemployment 
69.1 	and from income from workers' compensation to the association annually by May 15 in a 
69.2 	format prescribed by the executive director. If the form is not submitted by May 15, benefits 
69.3 	must be suspended effective June 1. If, upon receipt of the form, the executive director 
69.4 	determines that the disability benefit recipient is eligible for continued payment, benefits 
69.5 	must be reinstated retroactive to June 1. The executive director may waive the requirements 
69.6 	in this section if the medical evidence supports that the disability benefit recipient will not 
69.7 	have earnings from reemployment.

69.8 	EFFECTIVE DATE. This section is effective January 1, 2025.

69.9 	Sec. 8. Minnesota Statutes 2022, section 353.64, subdivision 1, is amended to read:
69.10 		Subdivision 1.Police and fire plan membership; mandatory. (a) A governmental 
69.11 	subdivision must report a public employee for membership in the police and fire plan if the 
69.12 	employee is employed full time as specified in clause (1), (2), or (3):
69.13 	(1) a full-time police officer or a person in charge of a designated police or sheriff's 
69.14 	department, who by virtue of that employment is required by the employing governmental 
69.15 	subdivision to be and is licensed by the Minnesota peace officer standards and training 
69.16 	board under sections 626.84 to 626.863, who is charged with the prevention and detection 
69.17 	of crime, who has the full power of arrest, who is assigned to a designated police or sheriff's 
69.18 	department, and whose primary job is the enforcement of the general criminal laws of the 
69.19 	state;
69.20 	(2) a full-time firefighter or a person in charge of a designated fire company or companies 
69.21 	who supervisor of other firefighters who, in either case, is employed in a fire department, 
69.22 	is required by the employing governmental subdivision to be and is licensed by the Board 
69.23 	of Firefighter Training and Education under section 299N.05, and who is engaged in the 
69.24 	hazards ofor exposed to hazardous conditions resulting from firefighting or fire prevention, 
69.25 	suppression, or investigation; or
69.26 	(3) a full-time police officer or firefighter meeting allthe requirements of clause (1) or 
69.27 	(2), as applicable, who as part of the employment position is periodically assigned less than 
69.28 	50 percent of the time to perform employment duties in the same department that are not 
69.29 	within the scope of this subdivision the employment duties described in clause (1) or (2).
69.30 	(b) An individual to which paragraph (a), clause (3), applies must contribute as a member 
69.31 	of the police and fire plan for both the primary and secondaryall services that are provided 
69.32 	to the employing governmental subdivision.

69.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

70.1 	Sec. 9. Minnesota Statutes 2022, section 353.64, subdivision 2, is amended to read:
70.2 		Subd. 2.Police and fire fundplan membership; part-time employment coverage 
70.3 	option. (a) The governing body of a governmental subdivision may adopt a resolution, 
70.4 	subject to requirements specified in paragraph (b), declaring that a public employee employed 
70.5 	in a position on a part-time basis by that governmental subdivision is covered by the police 
70.6 	and fire plan for that employment.
70.7 	(b) If the public employee's position is related to police service, the resolution is valid 
70.8 	if the conditions specified in paragraph (c) are met. If the public employee's position is 
70.9 	related to fire service, the resolution is valid if the conditions specified in paragraph (d) are 
70.10 	met. If the public employee in the applicable position is periodically assigned to employment 
70.11 	duties not within the scope of thisthe employment duties described in subdivision 1, 
70.12 	paragraph (a), clause (1) or (2), the resolution is considered valid if the governing body of 
70.13 	the governmental subdivision declares that the public employee's position, for primary 
70.14 	services provided at least 50 percent of the time worked, satisfies all of the requirements of 
70.15 	subdivision 1, paragraph (a), clause (3), other than the requirement of full-time employment.
70.16 	(c) For the governing body of the governmental subdivision to declare a position to be 
70.17 	that of a police officer, the duties and qualifications of the person so employed must, at a 
70.18 	minimum, satisfy all of the requirements of subdivision 1, paragraph (a), clause (1), other 
70.19 	than the requirement of full-time employment.
70.20 	(d) For the governing body of a governmental subdivision to declare a position to be 
70.21 	that of a firefighter, the duties and qualifications of the person so employed must, at a 
70.22 	minimum, satisfy all of the requirements of subdivision 1, paragraph (a), clause (2), other 
70.23 	than the requirement of full-time employment.

70.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

70.25 	Sec. 10. Minnesota Statutes 2022, section 353.64, subdivision 4, is amended to read:
70.26 		Subd. 4.Resolution filing. (a) A copy of the resolution of the governing body declaring 
70.27 	a position to be that of police officer or firefighter shall be promptly filed with the board of 
70.28 	trustees and shall be irrevocable.
70.29 	(b) Following the receipt of adequate notice from the association, if a valid resolution 
70.30 	is not filed with the public employees retirement association within six months following 
70.31 	the date of that notice, any contributions or deductions made to the police and fire fundplan 
70.32 	for the applicable employment are deemed to be contributions or deductions transmitted in 
70.33 	error under section 353.27, subdivision 7a.
71.1 	(c) The association must consider the filing by the governing body of a governmental 
71.2 	subdivision of a resolution that satisfies the requirements of this section regarding an 
71.3 	employee as sufficient evidence that the employee satisfies the eligibility requirements of 
71.4 	this section, including subdivision 1, paragraph (a), clause (3), and subdivision 2.

71.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

71.6 	Sec. 11. Minnesota Statutes 2022, section 353.64, subdivision 5a, is amended to read:
71.7 		Subd. 5a.Transfers. (a) A member of the police and fire fundplan continues to be a 
71.8 	member of that fundthe police and fire plan if the member is transferred or has a change 
71.9 	in employment:
71.10 	(1) to a different position with associatedwithin the same police or fire department
71.11 	functions in the same department or a related;
71.12 	(2) to a police department in the sameanother governmental subdivision providedin 
71.13 	the state of Minnesota; or
71.14 	(3) to a fire department in another governmental subdivision in the state of Minnesota.
71.15 	(b) The governing body sendsof the governmental subdivision that employs the member, 
71.16 	in the case of a transfer under paragraph (a), clause (1), or the governing body of the 
71.17 	governmental subdivision by which the member becomes employed, in the case of a transfer 
71.18 	under paragraph (a), clause (2) or (3), must send a copy of a resolution to that effect to the 
71.19 	association. A police and fire fund plan member who is elected or assumes an appointive 
71.20 	position, including but not limited to, the positions of city council member, city manager, 
71.21 	and finance director is not eligible to retain membership in the public employees police and 
71.22 	fire fund plan.

71.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

71.24 	Sec. 12. Minnesota Statutes 2023 Supplement, section 353D.01, subdivision 2, is amended 
71.25 	to read:
71.26 		Subd. 2.Eligibility. (a) Eligibility to participate in the plan is available to:
71.27 	(1) any elected or appointed local government official of a governmental subdivision 
71.28 	who elects to participate in the plan under section 353D.02, subdivision 1, and who, for the 
71.29 	service rendered to a governmental subdivision, is not a member of the association within 
71.30 	the meaning of section 353.01, subdivision 7;
72.1 	(2) physicians who, if they did not elect to participate in the plan under section 353D.02, 
72.2 	subdivision 2, would meet the definition of member under section 353.01, subdivision 7;
72.3 	(3) basic and advanced life-support emergency medical service personnel who are 
72.4 	employed by any public ambulance service that elects to participate under section 353D.02, 
72.5 	subdivision 3;
72.6 	(4) members of a municipal rescue squad associated with the city of Litchfield in Meeker 
72.7 	County, or of a county rescue squad associated with Kandiyohi County, if an independent 
72.8 	nonprofit rescue squad corporation, incorporated under chapter 317A, performing emergency 
72.9 	management services, and if not affiliated with a fire department or ambulance service and 
72.10 	if its members are not eligible for membership in that fire department's or ambulance service's 
72.11 	relief association or comparable pension plan;
72.12 	(5) employees of the Port Authority of the city of St. Paul who elect to participate in the 
72.13 	plan under section 353D.02, subdivision 5, and who are not members of the association 
72.14 	under section 353.01, subdivision 7;
72.15 	(6) city managers who elected to be excluded from the general employees retirement 
72.16 	plan of the association under section 353.028 and who elected to participate in the public 
72.17 	employees defined contribution plan under section 353.028, subdivision 3, paragraph (b);
72.18 	(7) volunteer or emergency on-call firefighters serving in a municipal fire department 
72.19 	or an independent nonprofit firefighting corporation who are not covered by the police and 
72.20 	fire retirement plan and who are not covered by a volunteer firefighters relief association 
72.21 	and who elect to participate in the public employees defined contribution plan;
72.22 	(8) any elected county sheriffssheriff who areis a former membersmember of the police 
72.23 	and fire plan and who are, is receiving a retirement annuity as provided under section 
72.24 	353.651, who does not have previous employment with the county for which the sheriff 
72.25 	was elected; and
72.26 	(9) persons appointed to serve on a board or commission of a governmental subdivision 
72.27 	or an instrumentality thereof.
72.28 	(b) Individuals otherwise eligible to participate in the plan under this subdivision who 
72.29 	are currently covered by a public or private pension plan because of their employment or 
72.30 	provision of services are not eligible to participate in the public employees defined 
72.31 	contribution plan.
72.32 	(c) A former participant is a person who has terminated eligible employment or service 
72.33 	and has not withdrawn the value of the person's individual account.

73.1 	EFFECTIVE DATE. This section is effective August 1, 2024.

73.2 	Sec. 13. Minnesota Statutes 2022, section 353D.02, as amended by Laws 2023, chapter 
73.3 	47, article 3, section 3, is amended to read:
73.4 	353D.02 ELECTION OF COVERAGE.
73.5 		Subdivision 1.Local government officials. Eligible elected or appointed local 
73.6 	government officials may elect to participate in the defined contribution plan afterwithin 
73.7 	the first 30 days of being elected or appointed to public office by filing a membership 
73.8 	application on a form prescribed by the executive director of the association authorizing 
73.9 	contributions to be deducted from the official's salary. Participation begins on the first day 
73.10 	of the pay period for which the contributions were deducted or, if pay period coverage dates 
73.11 	are not provided, the date on which the membership application or contributions are received 
73.12 	in the office of the association, whichever is received first, provided further that the 
73.13 	membership application is received by the association within 60 days of the receipt of the 
73.14 	contributions. An election to participate in the plan is revocable during incumbency
73.15 	irrevocable.
73.16 		Subd. 2.Eligible physician. Eligible physicians may elect to participate in the defined 
73.17 	contribution plan within 90the first 30 days of commencing employment with a government 
73.18 	subdivision under section 353.01, subdivision 6, by filing a membership application on a 
73.19 	form prescribed by the executive director of the association authorizing contributions to be 
73.20 	deducted from the physician's salary. Participation begins on the first day of the pay period 
73.21 	for which the contributions were deducted. An election to participate in the defined 
73.22 	contribution plan is irrevocable.
73.23 		Subd. 3.Eligible ambulance service personnel. Each public ambulance service with 
73.24 	eligible personnel may elect to participate in the plan. If a service elects to participate, its 
73.25 	eligible personnel may elect to participate or to decline to participate. An individual's election 
73.26 	must be made within 30 days of the service's election to participate or within 30 days of the 
73.27 	date on which the individual was employed bybegan employment with the service or began 
73.28 	to provide service for it, whichever date is later. An election by a service or an individual 
73.29 	is revocable irrevocable.
73.30 		Subd. 4.Eligible rescue squad personnel. The municipality or county, as applicable, 
73.31 	associated with a rescue squad under section 353D.01, subdivision 2, paragraph (a), clause 
73.32 	(4), may elect to participate in the plan. If the municipality or county, as applicable, elects 
73.33 	to participate, the eligible personnel may elect to participate or decline to participate. An 
73.34 	eligible individual's election must be made within 30 days of the service's election to 
74.1 	participate or within 30 days of the date on which the individual begins to provide service 
74.2 	tofirst began employment with the rescue squad, whichever is later. Elections under this 
74.3 	subdivision by a government unit or individual are irrevocable. The municipality or county, 
74.4 	as applicable, must specify by resolution eligibility requirements for rescue squad personnel 
74.5 	which must be satisfied if the individual is to be authorized to make the election under this 
74.6 	subdivision.
74.7 		Subd. 5.St. Paul Port Authority personnel. Employees of the Port Authority of the 
74.8 	city of St. Paul who do not elect to participate in the general employees retirement plan may 
74.9 	elect within the first 30 days of commencing employment to participate in the plan by filing 
74.10 	a membership application on a form prescribed by the executive director of the association 
74.11 	authorizing contributions to be deducted from the employee's salary. Participation begins 
74.12 	on the first day of the pay period for which the contributions were deducted or, if pay period 
74.13 	coverage dates are not provided, the date on which the membership application or the 
74.14 	contributions are received in the office of the association, whichever is received first, if the 
74.15 	membership application is received by the association within 60 days of the receipt of the 
74.16 	contributions. An election to participate in the plan is irrevocable.
74.17 		Subd. 6.City managers. City managers who elected to be excluded from the general 
74.18 	employees retirement plan of the Public Employees Retirement Association under section 
74.19 	353.028, and who elected to participate in the plan under section 353.028, subdivision 3, 
74.20 	paragraph (b), shall must file that election with the executive director within the first 30 
74.21 	days of commencing employment. Participation begins on the first day of the pay period 
74.22 	next following the date of the coverage election. An election to participate by a city manager 
74.23 	is revocable irrevocable.
74.24 		Subd. 7.Certain volunteer firefighters. Volunteer or emergency on-call firefighters 
74.25 	who are serving as members of a municipal fire department or an independent nonprofit 
74.26 	firefighting corporation and who are not covered for that firefighting service by the public 
74.27 	employees police and fire retirement plan under sections 353.63 to 353.68or, by the 
74.28 	applicablea volunteer firefighters relief association under chapter 424A, or by the statewide 
74.29 	volunteer firefighter retirement plan under chapter 353G may elect to participate in the plan
74.30 	within the first 30 days of commencing service. An eligible firefighter's election is 
74.31 	irrevocable. No employer contribution is payable by the fire department or the firefighting 
74.32 	corporation unless the municipal governing body or the firefighting corporation governing 
74.33 	body, whichever applies, ratifies the election.
74.34 		Subd. 8.Election available only upon first hire and no prior retirement plan 
74.35 	eligibility. Notwithstanding any other provisions under this section, an election under this 
75.1 	section is available to eligible participants only within the first 30 days of commencing 
75.2 	employment or service with the governmental subdivision. If the eligible participant has 
75.3 	previously been or is currently in a position covered by any retirement plan administered 
75.4 	by the association to which the governmental subdivision contributed or by any supplemental 
75.5 	pension or deferred compensation plan under section 356.24 sponsored by the governmental 
75.6 	subdivision, then the eligible participant must not receive an election.

75.7 	EFFECTIVE DATE. This section is effective August 1, 2024.

75.8 	Sec. 14. Minnesota Statutes 2022, section 353E.03, is amended to read:
75.9 	353E.03 CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.
75.10 		Subdivision 1.Member contributions. A member of the local government correctional 
75.11 	service retirement plan shall make an employee contribution in an amount equal to 5.83
75.12 	6.83 percent of salary.
75.13 		Subd. 2.Employer contributions. The employer shall contribute for a member of the 
75.14 	local government correctional service retirement plan an amount equal to 8.7510.25 percent 
75.15 	of salary.
75.16 		Subd. 3.Contribution deductions. The head of each department of each governmental 
75.17 	subdivision that employs members of the local government correctional service retirement 
75.18 	plan must deduct employee contributions in the manner and subject to the terms provided 
75.19 	in section 353.27, subdivision 4.

75.20 	EFFECTIVE DATE. This section is effective July 1, 2025.

75.21 	Sec. 15. Minnesota Statutes 2022, section 353E.04, subdivision 3, is amended to read:
75.22 		Subd. 3.Annuity amount. (a) The average salary as defined in subdivision 2, multiplied 
75.23 	by 1.9 percent for each year of allowable service before July 1, 2025, and 2.2 percent for 
75.24 	each year of allowable service beginning on or after July 1, 2025, determines the amount 
75.25 	of the normal retirement annuity.
75.26 	(b) If a person has earned allowable service in the general employees retirement plan of 
75.27 	the Public Employees Retirement Association or the public employees police and fire 
75.28 	retirement plan before participation under this chapter, the retirement annuity representing 
75.29 	such service must be computed in accordance with the formula specified in sections 353.29
75.30 	and 353.30 or 353.651, whichever applies.

75.31 	EFFECTIVE DATE. This section is effective July 1, 2025.

76.1 	Sec. 16. Minnesota Statutes 2022, section 353E.06, subdivision 6, is amended to read:
76.2 		Subd. 6.Resumption of employment Limitation on disability benefit payments. (a) 
76.3 	If a disabled employeemember receiving disability benefits resumes a gainful occupation 
76.4 	from whichwith earnings are less than, the amount of the member's disability benefit must 
76.5 	be reduced as described in paragraph (b) if the total of the disability benefit and earnings 
76.6 	exceeds the greater of:
76.7 	(1) the base monthly salary receivedrate the member had been receiving at the date of 
76.8 	disability; or
76.9 	(2) the base monthly salary rate currently paid by the employing governmental subdivision 
76.10 	for similar positions, or should the employee be entitled to receive workers' compensation 
76.11 	benefits,.
76.12 	(b) If paragraph (a) applies, the member's disability benefit must be continued in an 
76.13 	amount that, when added to such earnings during the months of employment, and workers' 
76.14 	compensation benefits, if applicable, doesreduced until the disability benefit plus the 
76.15 	monthly earnings from employment do not exceed the monthly salary received at the date 
76.16 	of disability or the monthly salary currently payable for the same employment position or 
76.17 	an employment position substantially similar to the one the person held as of the date of 
76.18 	the disability, whichever is greater of the salaries described in paragraph (a), clause (1) or 
76.19 	(2).

76.20 	EFFECTIVE DATE. This section is effective January 1, 2025.

76.21 	Sec. 17. ONETIME IRREVOCABLE ELECTION.
 76.22 		Subdivision 1.City managers. (a) A city manager hired by a city within six months 
76.23 	before August 1, 2024, and who is currently participating in the general employee retirement 
76.24 	plan of the Public Employees Retirement Association may make a onetime irrevocable 
76.25 	election to be excluded from membership if the election is:
76.26 	(1) in writing on a form prescribed by the executive director;
76.27 	(2) approved by a resolution adopted by the governing body of the city; and
76.28 	(3) received by the executive director between October 1, 2024, and October 30, 2024.
76.29 	(b) Membership of a city manager in the general employees retirement plan ceases on 
76.30 	the date that the written election is received by the executive director. Employee and 
76.31 	employer contributions made on behalf of a person exercising the option to be excluded 
77.1 	from membership under this subdivision must be refunded or credited in accordance with 
77.2 	Minnesota Statutes, section 353.27, subdivision 7.
77.3 		Subd. 2.Local government officials. A local government official elected or appointed 
77.4 	to public office in a city within six months before the effective date of this act may make a 
77.5 	onetime irrevocable election to participate in the public employees defined contribution 
77.6 	plan if the election is:
77.7 	(1) in writing on a form prescribed by the executive director;
77.8 	(2) approved by a resolution adopted by the governing body of the city; and
77.9 	(3) received by the executive director between October 1, 2024, and October 30, 2024.
77.10 		Subd. 3.Public ambulance service personnel. Eligible personnel hired by or providing 
77.11 	service to a participating public ambulance service within six months before the effective 
77.12 	date of this act may make a onetime irrevocable election to participate in the public 
77.13 	employees defined contribution plan if the election is:
77.14 	(1) in writing on a form prescribed by the executive director; and
77.15 	(2) received by the executive director between October 1, 2024, and October 30, 2024.

77.16 	EFFECTIVE DATE. This section is effective August 1, 2024.

77.17 	Sec. 18. REPEALER.
 77.18 	(a) Minnesota Statutes 2022, section 353D.071, is repealed effective the day following 
77.19 	final enactment.
77.20 	(b) Minnesota Statutes 2022, section 353.33, subdivision 5, and Minnesota Statutes 2023 
77.21 	Supplement, section 353.335, subdivision 2, are repealed effective January 1, 2025.

77.22 	ARTICLE 5
77.23 	MINNESOTA STATE RETIREMENT SYSTEM

77.24 	Section 1. Minnesota Statutes 2022, section 352.01, subdivision 13, is amended to read:
77.25 		Subd. 13.Salary. (a) Subject to the limitations of section 356.611, "salary" means wages, 
77.26 	or other periodic compensation, paid to an employee before deductions for deferred 
77.27 	compensation, supplemental retirement plans, or other voluntary salary reduction programs.
77.28 	(b) "Salary" does not include:
77.29 	(1) lump-sum sick leave payments;
78.1 	(2) severance payments;
78.2 	(3) lump-sum annual leave payments and overtime payments made at the time of 
78.3 	separation from state service;
78.4 	(4) payments in lieu of any employer-paid group insurance coverage, including the 
78.5 	difference between single and family rates that may be paid to an employee with single 
78.6 	coverage;
78.7 	(5) payments made as an employer-paid fringe benefit;
78.8 	(6) workers' compensation payments;
78.9 	(7) employer contributions to a deferred compensation or tax-sheltered annuity program; 
78.10 	and
78.11 	(8) amounts contributed under a benevolent vacation and sick leave donation program.
78.12 	(c) Amounts providedpaid to an employee by the employer through a grievance 
78.13 	proceeding or a legal settlement are salary only if the grievance or settlement is reviewed 
78.14 	by the executive director andagreement is received by the executive director no fewer than 
78.15 	14 days before payment is made and the executive director determines that:
78.16 	(1) the grievance or settlement agreement describes with sufficient specificity the period 
78.17 	or periods of time worked or not worked by the employee for which the amounts are 
78.18 	compensation; and
78.19 	(2) the amounts are determined by the executive director to be consistent withsalary as 
78.20 	defined in paragraph (a) and the determination is consistent with prior determinations.

78.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

78.22 	Sec. 2. Minnesota Statutes 2022, section 352.03, subdivision 5, is amended to read:
78.23 		Subd. 5.Executive director, deputy director, and assistant director. (a) The board 
78.24 	shall appoint an executive director, in this chapter called the director, on the basis of 
78.25 	education, experience in the retirement field, ability to manage and lead system staff, and 
78.26 	ability to assist the board in setting a vision for the system. The director must have had at 
78.27 	least five years' experience in either an executive level management position or in a position 
78.28 	with responsibility for the governance, management, or administration of a retirement plan.
78.29 	(b) The executive director, deputy director, and assistant director must be in the 
78.30 	unclassified service but appointees may be selected from civil service lists if desired. 
78.31 	Notwithstanding any law to the contrary, the board must set the salary of the executive 
79.1 	director. The salary of the executive director must not exceed the limit for a position listed 
79.2 	in section 15A.0815, subdivision 2.The board must set the salary of the executive director 
79.3 	with reference to a salary range in the managerial plan in effect under section 43A.18, 
79.4 	subdivision 3. The board must designate the salary range and the salary of the executive 
79.5 	director, which must not exceed the maximum for the salary range. The salary of the deputy 
79.6 	director and assistant director must be set in accordance with section 43A.18, subdivision 
79.7 	3.

79.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

79.9 	Sec. 3. Minnesota Statutes 2022, section 352.113, subdivision 1, is amended to read:
79.10 		Subdivision 1.Age and service requirements. (a) An employee covered by the system, 
79.11 	who is less thanwho has satisfied the applicable allowable service credit requirement under 
79.12 	section 352.115, subdivision 1, has not reached normal retirement age, and who becomes 
79.13 	totally and permanently disabled after three or more years of allowable service if employed 
79.14 	before July 1, 2010, or after five or more years of allowable service if employed after June 
79.15 	30, 2010, is entitled to a disability benefit in an amount provided in subdivision 3.
79.16 	(b) If the disabled employee's state service has terminated at any time, the employee 
79.17 	must have at least two years of allowable service after last becoming a state employee 
79.18 	covered by the system.
79.19 	(c) Refunds may be repaid under section 352.23 before the effective accrual date of the 
79.20 	disability benefit under subdivision 2.

79.21 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2023.

79.22 	Sec. 4. Minnesota Statutes 2022, section 352.12, subdivision 1, is amended to read:
79.23 		Subdivision 1.Death before termination of service. If an employee dies before state 
79.24 	service has terminated and neither a survivor annuity nor a reversionarybounce-back annuity 
79.25 	is payable on behalf of the employee, or if a former employee who has sufficient service 
79.26 	credit to be entitled to an annuity dies before the annuity has become payable, a refund with
79.27 	in an amount equal to the employee's accumulated contributions plus interest is payable 
79.28 	upon filing a written application on a form prescribed by the executive director. The refund 
79.29 	is payable to the last designated beneficiary or, if there is none, to the surviving spouse or, 
79.30 	if none, to the employee's surviving children in equal shares or, if none, to the employee's 
79.31 	surviving parents in equal shares or, if none, to the representative of the estate. Interest must 
79.32 	be computed as provided in section 352.22, subdivision 2. Upon the death of an employee 
80.1 	who has received a refund that was later repaid in full, interest must be paid on the repaid 
80.2 	refund only from the date of the repayment. If the repayment was made in installments, 
80.3 	interest must be paid only from the date on which the installment payments began. The 
80.4 	designated beneficiary, the surviving spouse, or the representative of the estate of an 
80.5 	employee who had received a disability benefit is not entitled to the payment of interest 
80.6 	upon any balance remaining to the decedent's credit in the fund at the time of death, unless 
80.7 	the death occurred before any payment could be negotiated.

80.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

80.9 	Sec. 5. Minnesota Statutes 2022, section 352.12, subdivision 2, is amended to read:
80.10 		Subd. 2.Surviving spouse benefit. (a) If an employee or former employee has credit 
80.11 	for at least three years allowable service if the employee was employed before July 1, 2010, 
80.12 	or for at least five years of allowable service if the employee was employed after June 30, 
80.13 	2010,satisfied the applicable allowable service credit requirement under section 352.115, 
80.14 	subdivision 1, and dies before an annuity or disability benefit has become payable, 
80.15 	notwithstanding any designation of beneficiary to the contrary, the surviving spouse of the 
80.16 	employee may elect to receive, in lieu of the refund with interest under subdivision 1, an 
80.17 	annuity equal to the joint and 100 percent survivor annuity which the employee or former 
80.18 	employee could have qualified for on the date of death.
80.19 	(b) If the employee was an active employee at the time of the employee's death, was 
80.20 	under age 55, and has credit for at least 30 years of allowable service on the date of death, 
80.21 	the surviving spouse may elect to receive a 100 percent joint and survivor annuity based on 
80.22 	the age of the employee and surviving spouse on the date of death. The annuity is payable 
80.23 	using the full early retirement reduction under section 352.116, subdivision 1, paragraph 
80.24 	(b), to age 55 and one-half of the early retirement reduction from age 55 to the age payment 
80.25 	begins.
80.26 	(c) If the employee was an active employee at the time of the employee's death, was 
80.27 	under age 55, and has credit for at least three years of allowable service credit on the date 
80.28 	of death if the employee was employed before July 1, 2010, or for at least five years of 
80.29 	allowable service if the employee was employed after June 30, 2010,satisfied the applicable 
80.30 	allowable service credit requirement under section 352.115, subdivision 1, but did not yet 
80.31 	qualify for retirement, the surviving spouse may elect to receive a 100 percent joint and 
80.32 	survivor annuity based on the age of the employee and surviving spouse at the time of death. 
80.33 	The annuity is payable using the full early retirement reduction under section 352.116, 
81.1 	subdivision 1 or 1a, to age 55 and one-half of the early retirement reduction from age 55 to 
81.2 	the age payment begins.
81.3 	(d) The surviving spouse eligible for benefits under paragraph (a) may apply for the 
81.4 	annuity at any time after the date on which the employee or former employee would have 
81.5 	attained the required age for retirement based on the allowable service earned. The surviving 
81.6 	spouse eligible for surviving spouse benefits under paragraph (b) or (c) may apply for the 
81.7 	annuity at any time after the employee's death. The annuity must be computed under sections 
81.8 	352.115, subdivisions 1, 2, and 3, and 352.116, subdivisions 1, 1a, and 3. SectionsSection 
81.9 	352.22, subdivisionsubdivisions 3, and 352.72, subdivision 2 3a, apply to a deferred annuity 
81.10 	orpayable to a surviving spouse benefit payable under this subdivision. The annuity must 
81.11 	cease with the last payment received by the surviving spouse in the lifetime of the surviving 
81.12 	spouse, or upon expiration of a term certain benefit payment to a surviving spouse under 
81.13 	subdivision 2a. An amount equal to the excess, if any, of the accumulated contributions 
81.14 	credited to the account of the deceased employee in excess of the total of the benefits paid 
81.15 	and payable to the surviving spouse must be paid to the deceased employee's or former 
81.16 	employee's last designated beneficiary or, if none, as specified under subdivision 1.
81.17 	(e) Any employee or former employee may request in writing, with the signed consent 
81.18 	of the spouse, that this subdivision not apply and that payment be made only to a designated 
81.19 	beneficiary as otherwise provided by this chapter.

81.20 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2023.

81.21 	Sec. 6. Minnesota Statutes 2022, section 352.12, subdivision 2b, is amended to read:
81.22 		Subd. 2b.Dependent child survivor coverage. If there is no surviving spouse eligible 
81.23 	for benefits under subdivision 2, a dependent child or children as defined in section 352.01, 
81.24 	subdivision 26, is eligible for monthly payments under this subdivision, but only if the 
81.25 	dependent child or children did not elect to receive a refund under subdivision 1. Payments 
81.26 	to a dependent child must be paid from the date of the employee's death to the date the 
81.27 	dependent child attains age 20 if the child is under age 15. If the child is 15 years or older 
81.28 	on the date of death, payment must be made for five years. The payment to a dependent 
81.29 	child is an amount actuarially equivalent to the value of a 100 percent optional annuity 
81.30 	under subdivision 2 using the age of the employee and age of the dependent child at the 
81.31 	date of death in lieu of the age of the surviving spouse. If there is more than one dependent 
81.32 	child, each dependent child shall receive a proportionate share of the actuarial value of the 
81.33 	employee's account.

81.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

82.1 	Sec. 7. Minnesota Statutes 2022, section 352.12, subdivision 7, is amended to read:
82.2 		Subd. 7.Absence of optional or reversionary bounce-back annuity. Upon the death 
82.3 	of a retired employee who selected neither an optional annuity or a reversionary bounce-back
82.4 	annuity, a refund must be paid in an amount equal to the excess, if any, of the accumulated 
82.5 	contributions to the credit of the retired employee immediately before retirement in excess 
82.6 	of the sum of (1) all annuities, retirement allowances, and disability benefits that had been 
82.7 	received and had accrued in the lifetime of the decedent, and (2) the annuity, retirement 
82.8 	allowance, or disability benefit if not negotiated, payable to the surviving spouse under 
82.9 	section 352.115, subdivision 8, or 352.113, subdivision 4, for the calendar month in which 
82.10 	the retired employee died. The refund must be paid to the named beneficiary or, if there be 
82.11 	none, to the surviving spouse or, if none, to the employee's surviving children in equal 
82.12 	shares or, if none, to the employee's surviving parents in equal shares or, if none, to the 
82.13 	representative of the estate.

82.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

82.15 	Sec. 8. Minnesota Statutes 2022, section 352.12, subdivision 8, is amended to read:
82.16 		Subd. 8.Optional or reversionary bounce-back annuity. If the last eligible recipient 
82.17 	of an optional annuity dies and the total amounts paid under it are less than the accumulated 
82.18 	contributions to the credit of the retired employee immediately before retirement, the balance 
82.19 	of accumulated contributions must be paid to the person designated by the retired employee 
82.20 	in writing to receive payment. If no designation has been made by the retired employee, the 
82.21 	remaining balance of accumulated contributions must be paid to the surviving children of 
82.22 	the deceased recipient of the optional annuity in equal shares. If there are no surviving 
82.23 	children, payment must be made to the deceased recipient's parents or, if none, to the 
82.24 	representative of the deceased recipient's estate.

82.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

82.26 	Sec. 9. Minnesota Statutes 2023 Supplement, section 352.91, subdivision 3f, as amended 
82.27 	by Laws 2024, chapter 79, article 9, section 18, is amended to read:
82.28 		Subd. 3f.Additional Department of Human Services personnel. (a) "Covered 
82.29 	correctional service" means service by a state employee in one of the employment positions 
82.30 	specified in paragraph (b) in the state-operated forensic services program or the Minnesota 
82.31 	Sex Offender Program if at least 75 percent of the employee's working time is spent in direct 
82.32 	contact with patients and the determination of this direct contact is certified to the executive 
83.1 	director by the commissioner of human services or direct care and treatment executive 
83.2 	board.
83.3 	(b) The employment positions are:
83.4 	(1) baker;
83.5 	(1) (2) behavior analyst 2;
83.6 	(2) (3) behavior analyst 3;
83.7 	(3) (4) certified occupational therapy assistant 1;
83.8 	(4) (5) certified occupational therapy assistant 2;
83.9 	(5) (6) client advocate;
83.10 	(6) (7) clinical program therapist 2;
83.11 	(7) (8) clinical program therapist 3;
83.12 	(8) (9) clinical program therapist 4;
83.13 	(10) cook;
83.14 	(11) culinary supervisor;
83.15 	(9) (12) customer services specialist principal;
83.16 	(10) (13) dental assistant registered;
83.17 	(11) (14) dental hygienist;
83.18 	(15) food service worker;
83.19 	(16) food services supervisor;
83.20 	(12) (17) group supervisor;
83.21 	(13) (18) group supervisor assistant;
83.22 	(14) (19) human services support specialist;
83.23 	(15) (20) licensed alcohol and drug counselor;
83.24 	(16) (21) licensed practical nurse;
83.25 	(17) (22) management analyst 3;
83.26 	(23) music therapist;
83.27 	(18) (24) occupational therapist;
84.1 	(19) (25) occupational therapist, senior;
84.2 	(20) (26) physical therapist;
84.3 	(21) (27) psychologist 1;
84.4 	(22) (28) psychologist 2;
84.5 	(23) (29) psychologist 3;
84.6 	(24) (30) recreation program assistant;
84.7 	(25) (31) recreation therapist lead;
84.8 	(26) (32) recreation therapist senior;
84.9 	(27) (33) rehabilitation counselor senior;
84.10 	(28) (34) residential program lead;
84.11 	(29) (35) security supervisor;
84.12 	(30) (36) skills development specialist;
84.13 	(31) (37) social worker senior;
84.14 	(32) (38) social worker specialist;
84.15 	(33) (39) social worker specialist, senior;
84.16 	(34) (40) special education program assistant;
84.17 	(35) (41) speech pathology clinician;
84.18 	(36) (42) substance use disorder counselor senior;
84.19 	(37) (43) work therapy assistant; and
84.20 	(38) (44) work therapy program coordinator.

84.21 	EFFECTIVE DATE. This section is effective on the first day of the first payroll period 
84.22 	occurring after the day of enactment.

84.23 	Sec. 10. Minnesota Statutes 2022, section 352.95, subdivision 4, is amended to read:
84.24 		Subd. 4.Medical or psychological evidence. (a) An applicant shall provide medical, 
84.25 	chiropractic, or psychological evidence to support an application for disability benefits. The 
84.26 	director shallmay have the employee examined by at least one additional licensed physician, 
84.27 	APRN, chiropractor, or psychologist who is designated by the medical adviser. The 
84.28 	physicians, APRNs, chiropractors, or psychologists with respect to a mental impairment, 
85.1 	shall make written reports to the director concerning the question of the employee's disability, 
85.2 	including their expert opinions as to whether the employee has an occupational disability 
85.3 	within the meaning of section 352.01, subdivision 17a, and whether the employee has a 
85.4 	duty disability, physical or psychological, under section 352.01, subdivision 17b, or has a 
85.5 	regular disability, physical or psychological, under section 352.01, subdivision 17c. The 
85.6 	director shall also obtain written certification from the employer stating whether or not the 
85.7 	employee is on sick leave of absence because of a disability that will prevent further service 
85.8 	to the employer performing normal duties as defined in section 352.01, subdivision 17d, or 
85.9 	performing less frequent duties as defined in section 352.01, subdivision 17e, and as a 
85.10 	consequence, the employee is not entitled to compensation from the employer.
85.11 	(b) If, on considering the reports by the physicians, APRNs, chiropractors, or 
85.12 	psychologists and any other evidence supplied by the employee or others, the medical 
85.13 	adviser finds that the employee has an occupational disability within the meaning of section 
85.14 	352.01, subdivision 17a, the adviser shall make the appropriate recommendation to the 
85.15 	director, in writing, together with the date from which the employee has been disabled. The 
85.16 	director shall then determine the propriety of authorizing payment of a duty disability benefit 
85.17 	or a regular disability benefit as provided in this section.
85.18 	(c) Unless the payment of a disability benefit has terminated because the employee no 
85.19 	longer has an occupational disability, or because the employee has reached either age 55 
85.20 	or the five-year anniversary of the effective date of the disability benefit, whichever is later, 
85.21 	the disability benefit must cease with the last payment which was received by the disabled 
85.22 	employee or which had accrued during the employee's lifetime. While disability benefits 
85.23 	are paid, the director has the right, at reasonable times, to require the disabled employee to 
85.24 	submit proof of the continuance of an occupational disability. If any examination indicates 
85.25 	to the medical adviser that the employee no longer has an occupational disability, the 
85.26 	disability payment must be discontinued upon the person's reinstatement to state service or 
85.27 	within 60 days of the finding, whichever is sooner.

85.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

85.29 	Sec. 11. [352B.115] REEMPLOYMENT.
85.30 		Subdivision 1.Return to employment. (a) A member of the State Patrol retirement 
85.31 	plan who has separated from service and is receiving an annuity under section 352B.08 or 
85.32 	has applied to receive an annuity under section 352B.08 may return to employment in the 
85.33 	same department and to a position covered by the State Patrol retirement plan as early as:
85.34 	(1) the second day after separation from service if the member is at least age 55; or
86.1 	(2) the 31st day after separation from service if the member is at least age 50 but not yet 
86.2 	age 55.
86.3 	(b) The executive director must seek repayment of any annuity payments made to a 
86.4 	member who returns to employment before the earliest day under paragraph (a), clause (1) 
86.5 	or (2), as applicable. The executive director may waive the repayment requirement if the 
86.6 	member's failure to comply with paragraph (a), clause (1) or (2), as applicable, was 
86.7 	inadvertent or due to no fault of the member.
86.8 		Subd. 2.Effect on annuity. (a) A member's return to employment under subdivision 1 
86.9 	does not impact the member's continued receipt of an annuity or commencement of annuity 
86.10 	payments.
86.11 	(b) During the period of reemployment:
86.12 	(1) the amount of the annuity must not increase or decrease as a result of the 
86.13 	reemployment;
86.14 	(2) the member must make member contributions as required under section 352B.02, 
86.15 	subdivisions 1a and 1b, during the period of reemployment; and
86.16 	(3) the member's employer must make employer and supplemental contributions as 
86.17 	required under section 352B.02, subdivision 1c.
86.18 		Subd. 3.Separation from service after period of reemployment. The executive director 
86.19 	must refund the member's contributions made during the period of reemployment, plus 
86.20 	interest, following the member's separation from service after the period of reemployment.
86.21 		Subd. 4.Other law and rules not applicable. (a) Section 352.115, subdivision 10, does 
86.22 	not apply to a member of the State Patrol retirement plan who returns to employment under 
86.23 	this section.
86.24 	(b) Minnesota Rules, part 6700.0675, does not apply to a member of the State Patrol 
86.25 	retirement plan who returns to employment under this section.
86.26 	(c) Minnesota Rules, part 6700.0670, does not apply to a member of the State Patrol 
86.27 	retirement plan who returns to employment under this section, except that the member must 
86.28 	be fingerprinted and the fingerprints must be forwarded by the employer to the Bureau of 
86.29 	Criminal Apprehension and the Federal Bureau of Investigation.
86.30 		Subd. 5.Effect on mandatory retirement age. A member's right to reemployment 
86.31 	under subdivision 1 does not extend or affect the application of the mandatory retirement 
86.32 	age under section 43A.34.

87.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

87.2 	Sec. 12. Laws 2021, chapter 22, article 2, section 3, is amended to read:
87.3 	Sec. 3. MSRS; SERVICE CREDIT PURCHASE PERMITTED FOR PERIOD OF 
87.4 	EMPLOYMENT AS AN EXCLUDED EMPLOYEE.
 87.5 		Subdivision 1.Definitions. For purposes of this section, the following definitions shall 
87.6 	apply, unless the context indicates a different meaning is intended:
87.7 	(1) "effective date" means the effective date of section 1;
87.8 	(2)(1) "eligible person" means a personstate employee or former state employee who: 
87.9 	(i) is employed in state service on the effective date or terminated employment in state 
87.10 	service during the lookback period; (ii) was an excluded employee for any period of 
87.11 	employment before the effective date; and(iii) before the effective date, became eligible for 
87.12 	coverage under Minnesota Statutes 2020, section 352.01, subdivision 2b, clause (14), or, 
87.13 	on the effective date, became a state employee under the amendment made by section 1
87.14 	May 26, 2021;
87.15 	(3)(2) "excluded employee" means a person who was excluded from coverage under 
87.16 	Minnesota Statutes 2020, section 352.01, subdivision 2b, clause (14), or its predecessor;
87.17 	and
87.18 	(4)(3) "executive director" means the executive director of the Minnesota State 
87.19 	Retirement System; and.
87.20 	(5) "lookback period" means the period that begins twelve months before the effective 
87.21 	date of section 1 and ends on the effective date.
87.22 		Subd. 1a.Authorization to purchase service credit. (a) If the employer of an eligible 
87.23 	person notifies the eligible person that the eligible person is entitled to make the payment 
87.24 	of missed employee contributions described in subdivision 2, the eligible person may elect 
87.25 	to purchase service credit for the period of employment or any portion thereof during which 
87.26 	contributions were not made for or by the eligible person because the eligible person was 
87.27 	considered an excluded employee.
87.28 	(b) If the eligible person elects to purchase service credit under paragraph (a), the eligible 
87.29 	person must forward the notification from the employer under paragraph (a) to the executive 
87.30 	director and request that the executive director determine the amount required under 
87.31 	subdivision 2 to pay the missed employee contributions for the period of time that the eligible 
87.32 	person did not make employee contributions because the eligible person was considered an 
88.1 	excluded employee. The executive director must respond to the eligible person's request no 
88.2 	later than 30 days after receiving the request.
88.3 	(c) The eligible person, upon receipt of the amount calculated by the executive director 
88.4 	under paragraph (b), must follow the procedure under subdivision 2 if the eligible person 
88.5 	wishes to purchase service credit for a period of employment during which contributions 
88.6 	were not made for or by the eligible person.
88.7 		Subd. 2.Authorizing the purchase of service credit Payments required. (a) 
88.8 	Notwithstanding any law to the contrary, the executive director must credit a person with 
88.9 	allowable service credit for any period of employment during which contributions were not 
88.10 	made for the person because the person was considered an excluded employee, if the person 
88.11 	is an eligible person and the executive director receives the payment described in paragraph 
88.12 	(b) or (c), as applicable, no later than 90 days after the date of the notification from the 
88.13 	eligible person's employer under subdivision 1a, paragraph (a).
88.14 	(b) The eligible person or the employer, on behalf of the eligible person, may, no later 
88.15 	than August 31, 2021, pay the missed employee contributions for any period of employment 
88.16 	during which contributions were not made for the person because the person was considered 
88.17 	an excluded employee, by transmitting the amount of the missed employee contributions 
88.18 	in a lump sum to the Minnesota State Retirement System amount calculated by the executive 
88.19 	director under subdivision 1a, paragraph (b).
88.20 	(c) In lieu of the amount under paragraph (a), the eligible person may elect to pay missed 
88.21 	employee contributions for less than the entire period of employment during which 
88.22 	contributions were not made. The period of employment elected must be consecutive payroll 
88.23 	periods and may be payroll periods during which the eligible person received the lowest 
88.24 	salary. Upon payment of the missed employee contributions for the period of employment 
88.25 	elected, the executive director must credit the eligible person with a proportionate amount 
88.26 	of allowable service credit.
88.27 	(d) If the missed employee contributions are paid, the eligible person's employer must, 
88.28 	no later than September 30, 2021 60 days after the date the missed employee contributions 
88.29 	are paid, pay the missed employer contributions plus interest, compounded annually, at the 
88.30 	applicable annual rate or rates specified in Minnesota Statutes, section 356.59, subdivision 
88.31 	2, on both the employee contributions and the employer contributions, from the end of the 
88.32 	year in which the contributions would have been made to the date on which the payment is 
88.33 	made, by transmitting the amount of the missed employer contributions plus interest in a 
88.34 	lump sum to the Minnesota State Retirement System. If the eligible person elects to pay 
89.1 	missed employee contributions for less than the entire period of employment as permitted 
89.2 	under paragraph (c), the employer must pay the missed employer contributions plus interest 
89.3 	on both the employee contributions and the employer contributions for the payroll periods 
89.4 	elected by the eligible person.
89.5 	(e) The executive director shallmust notify the eligible person's employer regarding the 
89.6 	amount required under paragraph (d) and the basis for determining the amount. If the 
89.7 	employer fails to make all or any portion of the payment required by paragraph (d), the 
89.8 	executive director shall follow the procedures in Minnesota Statutes, section 352.04, 
89.9 	subdivision 8, paragraph (b), to collect the unpaid amount.
89.10 		Subd. 3.Expiration. This section expires June 30, 2027.

89.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

89.12 	Sec. 13. NEW POSITIONS PERMITTED TO TRANSFER PAST SERVICE CREDIT 
89.13 	FROM THE MSRS GENERAL PLAN.
 89.14 	For each employee whose employment position is baker, cook, culinary supervisor, food 
89.15 	service worker, food services supervisor, or music therapist and who enters the correctional 
89.16 	state employees retirement plan on the effective date of section 9, the executive director 
89.17 	must consider the employee an eligible employee under Minnesota Statutes, section 352.955, 
89.18 	subdivision 1, paragraph (b), for purposes of Minnesota Statutes, section 352.955. The 
89.19 	executive director must transfer, from the general state employees retirement plan to the 
89.20 	correctional state employees retirement plan, any eligible prior correctional employment 
89.21 	as defined under Minnesota Statutes, section 352.955, subdivision 1, paragraph (c), if elected 
89.22 	by the eligible employee, subject to all other requirements of Minnesota Statutes, section 
89.23 	352.955, including payment by the eligible employee of the additional member contribution 
89.24 	as defined under Minnesota Statutes, section 352.955, subdivision 3, paragraph (a).

89.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

89.26 	Sec. 14. WORK GROUP ON MSRS CORRECTIONAL PLAN ELIGIBILITY.
 89.27 		Subdivision 1.Work group established. The executive director of the Legislative 
89.28 	Commission on Pensions and Retirement (commission executive director) must convene a 
89.29 	work group for the purpose of recommending legislation amending Minnesota Statutes, 
89.30 	sections 352.91 and 356.955, and other statutes applicable to eligibility for the Minnesota 
89.31 	State Retirement System correctional state employees retirement plan (correctional plan) 
90.1 	that will correct the deficiencies in the process under current law for adding employees and 
90.2 	positions to coverage by the correctional plan.
90.3 		Subd. 2.Membership. (a) The members of the work group are the following:
90.4 	(1) the executive director of the Minnesota State Retirement System or the executive 
90.5 	director's designee and a second member of the Minnesota State Retirement System staff 
90.6 	designated by the executive director of the Minnesota State Retirement System;
90.7 	(2) the commissioner of corrections or the commissioner's designee and a member of 
90.8 	the department's human resources staff with knowledge of the department's process for 
90.9 	creating and amending position descriptions of positions in the facilities with employees 
90.10 	covered by the correctional plan;
90.11 	(3) the commissioner of human services or the commissioner's designee and a member 
90.12 	of the department's human resources staff with knowledge of the department's process for 
90.13 	creating and amending position descriptions of positions in the facilities with employees 
90.14 	covered by the correctional plan;
90.15 	(4) two representatives from the American Federation of State, County and Municipal 
90.16 	Employees (AFSCME);
90.17 	(5) two representatives from the Minnesota Association of Professional Employees 
90.18 	(MAPE);
90.19 	(6) two representatives from the Middle Management Association (MMA); and
90.20 	(7) one representative from the Minnesota Nurses Association.
90.21 	(b) the commission executive director may invite others, including legislators and 
90.22 	legislative staff, to participate in one or more meetings of the work group.
90.23 	(c) The organizations specified in paragraph (a) must provide the commission executive 
90.24 	director with the names and contact information for the representatives who will serve on 
90.25 	the work group by June 14, 2024.
90.26 		Subd. 3.Scope. (a) In arriving at the work group's recommendation for legislation or 
90.27 	alternatives for legislation the work group must consider:
90.28 	(1) the effectiveness of the current process for certifying that an employee has direct 
90.29 	contact with inmates or patients at least 75 percent of the employee's working time as 
90.30 	required under Minnesota Statutes, section 352.91, and take into account that an employee's 
90.31 	direct contact may fluctuate from year to year or pay period to pay period and may vary 
90.32 	among facilities;
91.1 	(2) whether correctional plan membership should depend on position descriptions that 
91.2 	are not updated frequently enough or on position titles that may change from time to time 
91.3 	and whether there are alternatives to conditioning membership on position descriptions or 
91.4 	titles;
91.5 	(3) whether the procedures under Minnesota Statutes, section 352.91, subdivisions 4a 
91.6 	to 4c, should be reformed to ensure there is an effective procedure that will be followed for 
91.7 	evaluating positions and employees entitled to membership;
91.8 	(4) whether the service credit transfer provisions are effective or should be revised to 
91.9 	apply whenever an employee transfers coverage from the Minnesota State Retirement 
91.10 	System general state employees retirement plan to the correctional plan;
91.11 	(5) the philosophy behind current law that identifies certain positions as being 
91.12 	automatically eligible for plan membership and other positions as being eligible for plan 
91.13 	membership only if the direct contact requirement is met and the factors considered in 
91.14 	making determinations as to which positions will be automatically eligible; and
91.15 	(6) any other topics relevant to the considerations listed above that will reduce the 
91.16 	frequency with which the commission is requested to review plan membership issues.
91.17 		Subd. 4.Due date for submitting recommendation to the commission. The commission 
91.18 	executive director must submit the recommendation of the work group to the chair of the 
91.19 	Legislative Commission on Pensions and Retirement by January 10, 2025.
91.20 		Subd. 5.Meetings. (a) The executive director of the commission must convene the first 
91.21 	meeting of the work group no later than August 1, 2024, and will serve as chair.
91.22 	(b) Meetings may be conducted remotely or in person or a combination of remote and 
91.23 	in person.
91.24 	(c) In-person meetings must be held in the offices of the Legislative Coordinating 
91.25 	Commission or in the Retirement Systems of Minnesota Building in St. Paul.
91.26 		Subd. 6.Compensation; lobbying; retaliation. (a) Members of the work group serve 
91.27 	without compensation.
91.28 	(b) Participation in the work group is not lobbying under Minnesota Statutes, chapter 
91.29 	10A.
91.30 	(c) An individual's employer or an association of which an individual is a member must 
91.31 	not retaliate against the individual because of the individual's participation in the work 
91.32 	group.
92.1 		Subd. 7.Administrative support. Commission staff must provide administrative support 
92.2 	for the work group.
92.3 		Subd. 8.Expiration. The work group expires June 30, 2025.

92.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

92.5 	ARTICLE 6
92.6 	MINNESOTA SECURE CHOICE RETIREMENT PROGRAM

92.7 	Section 1. Minnesota Statutes 2023 Supplement, section 187.03, is amended by adding a 
92.8 	subdivision to read:
92.9 		Subd. 7a.Home and community-based services employee. "Home and 
92.10 	community-based services employee" means an individual employed by the individual's 
92.11 	child or spouse to provide:
92.12 	(1) consumer-directed community supports services under sections 256B.092 and 256B.49 
92.13 	and chapter 256S or under the alternative care program authorized under section 256B.0913; 
92.14 	or
92.15 	(2) services under the community first services and supports program authorized under 
92.16 	section 256B.85 and Minnesota's federally approved waiver programs.
92.17 	This definition applies only to this chapter and does not create any other legal rights or 
92.18 	obligations under state or federal law.

92.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

92.20 	Sec. 2. Minnesota Statutes 2023 Supplement, section 187.05, subdivision 7, is amended 
92.21 	to read:
92.22 		Subd. 7.Individuals not employed by a covered employer. (a) In addition to home 
92.23 	and community-based services employees under paragraph (b), the board may allow 
92.24 	individuals not employed by a covered employer to open and contribute to an account in 
92.25 	the program, in which case the individual shallmust be considered a covered employee for 
92.26 	purposes of sections 187.05 to 187.11.
92.27 	(b) The board must allow any home and community-based services employee to open 
92.28 	and contribute to an account in the program within six months of the opening of the program 
92.29 	and must consider a home and community-based services employee a covered employee 
92.30 	for purposes of sections 187.05 to 187.11.

92.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

93.1 	Sec. 3. Minnesota Statutes 2023 Supplement, section 187.08, subdivision 1, is amended 
93.2 	to read:
93.3 		Subdivision 1.Membership. The policy-making function of the program is vested in a 
93.4 	board of directors consisting of seven members as follows:
93.5 	(1) the executive director of the Minnesota State Retirement System or the executive 
93.6 	director's designee;
93.7 	(2) the executive director of the State Board of Investment or the executive director's 
93.8 	designee;
93.9 	(3) three members chosen by the Legislative Commission on Pensions and Retirement, 
93.10 	one from each of the following experience categories:
93.11 	(i) executive or operations manager with substantial experience in record keeping 401(k) 
93.12 	plans;
93.13 	(ii) executive or operations manager with substantial experience in individual retirement 
93.14 	accounts; and
93.15 	(iii) executive or other professional with substantial experience in retirement plan 
93.16 	investments;
93.17 	(4) a human resources or retirement benefits executive from a private company with 
93.18 	substantial experience in administering the company's 401(k) plan, appointed by the governor; 
93.19 	and
93.20 	(5) a small business owner, a small business executive, or a nonprofit executive appointed 
93.21 	by the governor.

93.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

93.23 	Sec. 4. Minnesota Statutes 2023 Supplement, section 187.08, subdivision 7, is amended 
93.24 	to read:
93.25 		Subd. 7.Executive director; staff. (a) The board must appoint an executive director, 
93.26 	determine the duties of the executive director, and set the compensation of the executive 
93.27 	director. The board may appoint an interim executive director to serve as executive director 
93.28 	during any period that the executive director position is vacant.
93.29 	(b) The board may also hire staff as necessary to support the board and the executive 
93.30 	director or interim executive director in performing itstheir duties or the board may authorize 
93.31 	the executive director or interim executive director to hire staff.

94.1 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2024.

94.2 	Sec. 5. Minnesota Statutes 2023 Supplement, section 187.08, subdivision 8, is amended 
94.3 	to read:
94.4 		Subd. 8.Duties. In addition to the duties set forth elsewhere in this chapter, the board 
94.5 	has the following duties:
94.6 	(1) to establish secure processes for enrolling covered employees in the program and 
94.7 	for transmitting employee and employer contributions to accounts in the trust;
94.8 	(2) to prepare a budget and establish procedures for the payment of costs of administering 
94.9 	and operating the program;
94.10 	(3) to lease or otherwise procure equipment necessary to administer the program;
94.11 	(4) to procure insurance in connection with the property of the program and the activities 
94.12 	of the board, executive director, and other staff;
94.13 	(5) to determine the following:
94.14 	(i) any criteria for a covered employee other than employment with a covered employer 
94.15 	under section 187.03, subdivision 5;
94.16 	(ii) contribution rates and an escalation schedule under section 187.05, subdivision 4;
94.17 	(iii) withdrawal and distribution options under section 187.05, subdivision 6; and
94.18 	(iv) the default investment fund under section 187.06, subdivision 5;
94.19 	(6) to keep annual administrative fees, costs, and expenses as low as possible:
94.20 	(i) except that any administrative fee assessed against the accounts of covered employees 
94.21 	may not exceed a reasonable amount relative to the fees charged by auto-IRA or defined 
94.22 	contribution programs of similar size in the state of Minnesota or another state; and
94.23 	(ii) the fee may be asset-based, flat fee, or a hybrid combination of asset-based and flat 
94.24 	fee;
94.25 	(7) to determine the eligibility of an employer, employee, or other individual to participate 
94.26 	in the program and review and decide claims for benefits and make factual determinations;
94.27 	(8) to prepare information regarding the program that is clear and concise for 
94.28 	dissemination to all covered employees and includes the following:
94.29 	(i) the benefits and risks associated with participating in the program;
95.1 	(ii) procedures for enrolling in the program and opting out of the program, electing a 
95.2 	different or zero percent employee contribution rate, making investment elections, applying 
95.3 	for a distribution of employee accounts, and making a claim for benefits;
95.4 	(iii) the federal and state income tax consequences of participating in the program, which 
95.5 	may consist of or include the disclosure statement required to be distributed by retirement 
95.6 	plan trustees or custodians under the Internal Revenue Code and the Treasury Regulations 
95.7 	thereunder;
95.8 	(iv) how to obtain additional information on the program; and
95.9 	(v) disclaimers of covered employer and state responsibility, including the following 
95.10 	statements:
95.11 	(A) covered employees seeking financial, investment, or tax advice should contact their 
95.12 	own advisors;
95.13 	(B) neither a covered employer nor the state of Minnesota are liable for decisions covered 
95.14 	employees make regarding their account in the program;
95.15 	(C) neither a covered employer nor the state of Minnesota guarantees the accounts in 
95.16 	the program or any particular investment rate of return; and
95.17 	(D) neither a covered employer nor the state of Minnesota monitors or has an obligation 
95.18 	to monitor any covered employee's eligibility under the Internal Revenue Code to make 
95.19 	contributions to an account in the program, or whether the covered employee's contributions 
95.20 	to an account in the program exceed the maximum permissible contribution under the 
95.21 	Internal Revenue Code;
95.22 	(9) to publish an annual financial report, prepared according to generally accepted 
95.23 	accounting principles, on the operations of the program, which must include but not be 
95.24 	limited to costs attributable to the use of outside consultants, independent contractors, and 
95.25 	other persons who are not state employees and deliver the report to the chairs and ranking 
95.26 	minority members of the legislative committees with jurisdiction over jobs and economic 
95.27 	development and state government finance, the executive directors of the State Board of 
95.28 	Investment and the Legislative Commission on Pensions and Retirement, and the Legislative 
95.29 	Reference Library;
95.30 	(10) to publish an annual report regarding plan outcomes, progress toward savings goals 
95.31 	established by the board, statistics on the number of participants, participating employers, 
95.32 	and covered employees who have opted out of participation, plan expenses, estimated impact 
95.33 	of the program on social safety net programs, and penalties and violations, and disciplinary 
96.1 	actions for enforcement, and deliver the report to the chairs and ranking minority members 
96.2 	of the legislative committees with jurisdiction over jobs and economic development and 
96.3 	state government finance, the executive directors of the State Board of Investment and the 
96.4 	Legislative Commission on Pensions and Retirement, and the Legislative Reference Library;
96.5 	(11) to file all reports required under the Internal Revenue Code or chapter 290;
96.6 	(12) to, at the board's discretion, seek and accept gifts, grants, and donations to be used 
96.7 	for the program, unless such gifts, grants, or donations would result in a conflict of interest 
96.8 	relating to the solicitation of service provider for program administration, and deposit such 
96.9 	gifts, grants, or donations in the Secure Choice administrative fund;
96.10 	(13) to, at the board's discretion, seek and accept appropriations from the state or loans 
96.11 	from the state or any agency of the state;
96.12 	(14) to assess the feasibility of partnering with another state or a governmental subdivision 
96.13 	of another state to administer the program through shared administrative resources and, if 
96.14 	determined beneficial, enter into contracts, agreements, memoranda of understanding, or 
96.15 	other arrangements with any other state or an agency or a subdivision of any other state to 
96.16 	administer, operate, or manage any part of the program, which may include combining 
96.17 	resources, investments, or administrative functions;
96.18 	(15) to hire, retain, and terminate third-party service providers as the board deems 
96.19 	necessary or desirable for the program, including but not limited to the trustees, consultants, 
96.20 	investment managers or advisors, custodians, insurance companies, recordkeepers, 
96.21 	administrators, consultants, actuaries, legal counsel, auditors, and other professionals, 
96.22 	provided that each service provider is authorized to do business in the state;
96.23 	(16) to interpret the program's governing documents and this chapter and make all other 
96.24 	decisions necessary to administer the program;
96.25 	(17) to conduct comprehensive employer and worker education and outreach regarding 
96.26 	the program that reflect the cultures and languages of the state's diverse workforce population, 
96.27 	which may, in the board's discretion, include collaboration with state and local government 
96.28 	agencies, community-based and nonprofit organizations, foundations, vendors, and other 
96.29 	entities deemed appropriate to develop and secure ongoing resources; and
96.30 	(18) to prepare notices for delivery to covered employees regarding the escalation 
96.31 	schedule and to each covered employee before the covered employee is subject to an 
96.32 	automatic contribution increase.

96.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

97.1 	Sec. 6. Laws 2023, chapter 46, section 11, is amended to read:
97.2 	Sec. 11. BOARD SUPPORT UNTIL APPOINTMENT OF EXECUTIVE DIRECTOR.
 97.3 	With the assistance of the Legislative Coordinating Commission, the executive director 
97.4 	of the Legislative Commission on Pensions and Retirement must:
97.5 	(1) provide notice to members of the board regarding the first meeting of the board and 
97.6 	work with the member designated under section 10, subdivision 2, to determine the agenda 
97.7 	and provide meeting support; and
97.8 	(2) serve as the interim executive director to assist the board until the board appoints an 
97.9 	interim executive director or completes the search, recruitment, and interview process and 
97.10 	appoints the executive director under Minnesota Statutes, section 187.08, subdivision 8.

97.11 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2024.

97.12 	ARTICLE 7
97.13 	SUPPLEMENTAL PLANS

97.14 	Section 1. Minnesota Statutes 2023 Supplement, section 356.24, subdivision 1, is amended 
97.15 	to read:
97.16 		Subdivision 1.Restriction; exceptions. It is unlawful for a school district or other 
97.17 	governmental subdivision or state agency to levy taxes for or to contribute public funds to 
97.18 	a supplemental pension or deferred compensation plan that is established, maintained, and 
97.19 	operated in addition to a primary pension program for the benefit of the governmental 
97.20 	subdivision employees other than:
97.21 	(1) to a supplemental pension plan that was established, maintained, and operated before 
97.22 	May 6, 1971;
97.23 	(2) to a plan that provides solely for group health, hospital, disability, or death benefits;
97.24 	(3) to the individual retirement account plan established by chapter 354B;
97.25 	(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or 
97.26 	terminating employee;
97.27 	(5) to a deferred compensation plan defined in subdivision 3;
97.28 	(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges 
97.29 	and Universities and not covered by clause (5), to the supplemental retirement plan under 
97.30 	chapter 354C, if the supplemental plan coverage is provided for in a personnel policy or in 
98.1 	the collective bargaining agreement of the public employer with the exclusive representative 
98.2 	of the covered employees in an appropriate unit, in an amount matching employee 
98.3 	contributions on a dollar for dollar basis, but not to exceed an employer contribution of 
98.4 	$2,700 a year for each employee;
98.5 	(7) to a supplemental plan or to a governmental trust to save for postretirement health 
98.6 	care expenses qualified for tax-preferred treatment under the Internal Revenue Code, if the 
98.7 	supplemental plan coverage is provided for in a personnel policy or in the collective 
98.8 	bargaining agreement of a public employer with the exclusive representative of the covered 
98.9 	employees in an appropriate unit;
98.10 	(8) to the laborers national industrial pension fund or to a laborers local pension fund 
98.11 	for the employees of a governmental subdivision who are covered by a collective bargaining 
98.12 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
98.13 	rate, but not to exceed an employer contribution of $10,000 per year per employee;
98.14 	(9) to the plumbers and pipefitters national pension fund or to a plumbers and pipefitters 
98.15 	local pension fund for the employees of a governmental subdivision who are covered by a 
98.16 	collective bargaining agreement that provides for coverage by that fund and that sets forth 
98.17 	a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per 
98.18 	employee;
98.19 	(10) to the international union of operating engineers pension fund for the employees 
98.20 	of a governmental subdivision who are covered by a collective bargaining agreement that 
98.21 	provides for coverage by that fund and that sets forth a fund contribution rate, but not to 
98.22 	exceed an employer contribution of $10,000 per year per employee;
98.23 	(11) to the International Association of Machinists national pension fund for the 
98.24 	employees of a governmental subdivision who are covered by a collective bargaining 
98.25 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
98.26 	rate, but not to exceed an employer contribution of $5,000 per year per employee;
98.27 	(12) for employees of United Hospital District, Blue Earth, to the state of Minnesota 
98.28 	deferred compensation program, if the employee makes a contribution, in an amount that 
98.29 	does not exceed the total percentage of covered salary under section 353.27, subdivisions 
98.30 	3 and 3a;
98.31 	(13) to the alternative retirement plans established by the Hennepin County Medical 
98.32 	Center under section 383B.914, subdivision 5; or
99.1 	(14) to the International Brotherhood of Teamsters Central States pension plan for 
99.2 	fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who 
99.3 	are members of the International Brotherhood of Teamsters Local 638 by virtue of that 
99.4 	employment.; or
99.5 	(15) to a supplemental plan organized and operated under the Internal Revenue Code, 
99.6 	as amended, that is wholly and solely funded by the employee's accumulated sick leave, 
99.7 	accumulated vacation leave, and accumulated severance pay.

99.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

99.9 	Sec. 2. Minnesota Statutes 2022, section 356.24, subdivision 3, is amended to read:
99.10 		Subd. 3.Deferred compensation plan. (a) As used in this section:
99.11 	(1) "deferred compensation plan" means a plan that satisfies the requirements of this 
99.12 	subdivision;
99.13 	(2) "plan administrator" means the individual or entity defined as the plan administrator 
99.14 	in the plan document for the Minnesota deferred compensation plan under section 352.965 
99.15 	or a deferred compensation plan under section 457(b) of the Internal Revenue Code; and
99.16 	(3) "vendor" means the provider of an annuity contract, custodial account, or retirement 
99.17 	income account under a tax-sheltered annuity plan under section 403(b) of the Internal 
99.18 	Revenue Code.
99.19 	(b) The plan is:
99.20 	(1) the Minnesota deferred compensation plan under section 352.965;
99.21 	(2) a tax-sheltered annuity plan under section 403(b) of the Internal Revenue Code; or
99.22 	(3) a deferred compensation plan under section 457(b) of the Internal Revenue Code.
99.23 	(c) For each investment fund available to participants under the plan, other than in a 
99.24 	self-directed brokerage account or fixed annuity contract, the plan administrator or vendor 
99.25 	discloses at least annually to participants a statement that sets forth (1) all fees, including 
99.26 	administrative, maintenance, and investment fees, that impact the rate of return on each 
99.27 	investment fund available under the plan, and (2) the rates of return for the prior one-, three-,
99.28 	five-, and ten-year periods or for the life of the fund, if shorter, in an easily understandable 
99.29 	document. The plan administrator or vendor must file a copy of this statement annually with 
99.30 	the executive director of the Legislative Commission on Pensions and Retirement within 
99.31 	30 days of the end of each fiscal year of the plan.
100.1 	(d) Enrollment in the plan is provided for in:
100.2 	(1) a personnel policy of the public employer;
100.3 	(2) a collective bargaining agreement between the public employer and the exclusive 
100.4 	representative of public employees in an appropriate unit; or
100.5 	(3) an individual employment contract (i) between a city and a city manager or other 
100.6 	management employee, or (ii) between a school district and a superintendent or other 
100.7 	management employee.
100.8 	(e) The plan covers employees of a school district, state agency, or other governmental 
100.9 	subdivision. The plan may cover city managers covered by an alternative retirement 
100.10 	arrangement under section 353.028, subdivision 3, paragraph (a) or (b), but must not cover 
100.11 	employees of the Board of Trustees of Minnesota State Colleges and Universities who are 
100.12 	covered by the Higher Education Supplemental Retirement Plan under chapter 354C.
100.13 	(f) Except as permitted under paragraph (g), public funds are contributed to the plan 
100.14 	only in an amount that matches If the public employer makes matching contributions to the 
100.15 	plan, the matching contributions must match, on a dollar for dollar basis, employee elective 
100.16 	deferral contributions on a dollar for dollar basis, but not to exceed the lesser of (1) the 
100.17 	maximum authorized under the policy described in paragraph (d) that provides for enrollment 
100.18 	in the plan or program, or (2) one-half of the annual limit on elective deferrals under section 
100.19 	402(g) of the Internal Revenue Code. In lieu of or in addition to matching an employee's 
100.20 	elective deferral contributions, the public employer may make employer matching 
100.21 	contributions on behalf of an employee on account of qualified student loan payments, as 
100.22 	defined in the Secure 2.0 Act of 2022, Public Law 117-328 (December 29, 2022), Division 
100.23 	T, section 110, paragraph (b), and any regulations adopted thereunder. The employer 
100.24 	matching contributions on account of an employee's qualified student loan payments plus 
100.25 	any employer matching contributions that match an employee's elective deferral contributions 
100.26 	must not exceed, for the year, the lesser of (1) the maximum authorized under the policy 
100.27 	described in paragraph (d) that provides for enrollment in the plan or program, (2) one-half 
100.28 	of the annual limit on elective deferrals under section 402(g) of the Internal Revenue Code, 
100.29 	or (3) the employee's compensation for the year.
100.30 	(g) Contributions to the plan may include contributions deducted from an employee's 
100.31 	sick leave, accumulated vacation leave, or accumulated severance pay, whether characterized 
100.32 	as employee contributions or nonelective employer contributions, up to applicable limits 
100.33 	under the Internal Revenue Code. Such contributions are not subject to the match requirement 
100.34 	and limit in paragraph (f).

101.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

101.2 	ARTICLE 8
101.3 	APPLICABLE TO ALL PLANS:
101.4 	AMORTIZATION; INTERNAL REVENUE CODE COMPLIANCE

101.5 	Section 1. Minnesota Statutes 2023 Supplement, section 356.215, subdivision 11, is 
101.6 	amended to read:
101.7 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating the level 
101.8 	normal cost, the actuarial valuation of the retirement plan must contain an exhibit for financial 
101.9 	reporting purposes indicating the additional annual contribution sufficient to amortize the 
101.10 	unfunded actuarial accrued liability and must contain an exhibit indicating the additional 
101.11 	contribution sufficient to amortize the unfunded actuarial accrued liability. For the retirement 
101.12 	plans listed in subdivision 8, paragraph (a), but excluding the legislators retirement plan, 
101.13 	the Bloomington Fire Department Relief Association, and the local monthly benefit volunteer 
101.14 	firefighter relief associations, the additional contribution must be calculated on a level 
101.15 	percentage of covered payroll basis by the established date for full funding in effect when 
101.16 	the valuation is prepared, assuming annual payroll growth at the applicable percentage rate 
101.17 	set forth in the appendix described in subdivision 8, paragraph (c). For the legislators 
101.18 	retirement plan, the additional annual contribution must be calculated on a level annual 
101.19 	dollar amount basis.
101.20 	(b) For any retirement plan other than a retirement plan governed by paragraph (d), (e), 
101.21 	(f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions used for 
101.22 	calculating the actuarial accrued liability of the fund, a change in the benefit plan governing 
101.23 	annuities and benefits payable from the fund, a change in the actuarial cost method used in 
101.24 	calculating the actuarial accrued liability of all or a portion of the fund, or a combination 
101.25 	of the three, which change or changes by itself or by themselves without inclusion of any 
101.26 	other items of increase or decrease produce a net increase in the unfunded actuarial accrued 
101.27 	liability of the fund, the established date for full funding is the first actuarial valuation date 
101.28 	occurring after June 1, 2020.
101.29 	(c)(b) This paragraph applies only if the calculation under this paragraph for a retirement 
101.30 	plan results in an established date for full funding that is earlier than the established date 
101.31 	for full funding applicable to the retirement plan under paragraph (c). For any retirement 
101.32 	plan, if there has been a change in any or all of the actuarial assumptions used for calculating 
101.33 	the actuarial accrued liability of the fund, a change in the benefit plan governing annuities 
101.34 	and benefits payable from the fund, a change in the actuarial cost method used in calculating 
102.1 	the actuarial accrued liability of all or a portion of the fund, or a combination of the three, 
102.2 	and the change or changes, by itself or by themselves and without inclusion of any other 
102.3 	items of increase or decrease, produce a net increase in the unfunded actuarial accrued 
102.4 	liability in the fund, the established date for full funding must be determined using the 
102.5 	following procedure:
102.6 	(i) the unfunded actuarial accrued liability of the fund must be determined in accordance 
102.7 	with the plan provisions governing annuities and retirement benefits and the actuarial 
102.8 	assumptions in effect before an applicable change;
102.9 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
102.10 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
102.11 	(i) by the established date for full funding in effect before the change must be calculated 
102.12 	using the investment return assumption specified in subdivision 8 in effect before the change;
102.13 	(iii) the unfunded actuarial accrued liability of the fund must be determined in accordance 
102.14 	with any new plan provisions governing annuities and benefits payable from the fund and 
102.15 	any new actuarial assumptions and the remaining plan provisions governing annuities and 
102.16 	benefits payable from the fund and actuarial assumptions in effect before the change;
102.17 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
102.18 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
102.19 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
102.20 	under item (iii) over a period of 30 years from the end of the plan year in which the applicable 
102.21 	change is effective must be calculated using the applicable investment return assumption 
102.22 	specified in subdivision 8 in effect after any applicable change;
102.23 	(v) the level annual dollar or level percentage amortization contribution under item (iv) 
102.24 	must be added to the level annual dollar amortization contribution or level percentage 
102.25 	calculated under item (ii);
102.26 	(vi) the period in which the unfunded actuarial accrued liability amount determined in 
102.27 	item (iii) is amortized by the total level annual dollar or level percentage amortization 
102.28 	contribution computed under item (v) must be calculated using the investment return 
102.29 	assumption specified in subdivision 8 in effect after any applicable change, rounded to the 
102.30 	nearest integral number of years, but not to exceed 30 years from the end of the plan year 
102.31 	in which the determination of the established date for full funding using the procedure set 
102.32 	forth in this clause is made and not to be less than the period of years beginning in the plan 
102.33 	year in which the determination of the established date for full funding using the procedure 
103.1 	set forth in this clause is made and ending by the date for full funding in effect before the 
103.2 	change; and
103.3 	(vii) the period determined under item (vi) must be added to the date as of which the 
103.4 	actuarial valuation was prepared and the date obtained is the new established date for full 
103.5 	funding.
103.6 	(c) The established date for full funding is the date provided for each of the following 
103.7 	plans:
103.8 	(d)(i) for the general employees retirement plan of the Public Employees Retirement 
103.9 	Association, the established date for full funding is June 30, 2048.;
103.10 	(e)(ii) for the Teachers Retirement Association, the established date for full funding is 
103.11 	June 30, 2048, through June 30, 2025. Beginning July 1, 2025, the established date for full 
103.12 	funding is June 30, 2053.;
103.13 	(f)(iii) for the correctional state employees retirement plan and the State Patrol retirement 
103.14 	plan of the Minnesota State Retirement System, the established date for full funding is June 
103.15 	30, 2048.;
103.16 	(g)(iv) for the judges retirement plan, the established date for full funding is June 30, 
103.17 	2048.;
103.18 	(h)(v) for the local government correctional service retirement plan and the public 
103.19 	employees police and fire retirement plan, the established date for full funding is June 30, 
103.20 	2048.;
103.21 	(i)(vi) for the St. Paul Teachers Retirement Fund Association, the established date for 
103.22 	full funding is June 30, 2048.; and
103.23 	(j)(vii) for the general state employees retirement plan of the Minnesota State Retirement 
103.24 	System, the established date for full funding is June 30, 2048.
103.25 	(k)(d) For the retirement plans for which the annual actuarial valuation indicates an 
103.26 	excess of valuation assets over the actuarial accrued liability, the valuation assets in excess 
103.27 	of the actuarial accrued liability must be recognized as a reduction in the current contribution 
103.28 	requirements by an amount equal to the amortization of the excess expressed as a level 
103.29 	percentage of pay over a 30-year period beginning anew with each annual actuarial valuation 
103.30 	of the plan.

103.31 	EFFECTIVE DATE. This section is effective June 30, 2024.

104.1 	Sec. 2. Minnesota Statutes 2022, section 356.611, subdivision 2, is amended to read:
104.2 		Subd. 2.Federal compensation limits. (a) For members or participants of a covered 
104.3 	pension retirement plan enumerated in section 356.30, subdivision 3, and of the plan 
104.4 	established under chapter 353D listed in subdivision 6, compensation in excess of the 
104.5 	limitation specified in section 401(a)(17) of the Internal Revenue Code, as amended adjusted, 
104.6 	for changes in the cost of living under section 401(a)(17)(B) of the Internal Revenue Code, 
104.7 	maymust not be included for contribution and benefit computation purposes.
104.8 	(b) Notwithstanding paragraph (a), for members or participants specified in paragraph 
104.9 	(a) who first contributed to a plan specified in that paragraph before July 1, 1995, the annual 
104.10 	compensation limit specified in section 401(a)(17) of the Internal Revenue Code on June 
104.11 	30, 1993, applies if that provides a greater allowable annual compensation.
104.12 	(c) To the extent required by sections 3401(h) and 414(u)(12) of the federal Internal 
104.13 	Revenue Code, an individual receiving a differential wage payment as defined in section 
104.14 	3401(h)(2) of the federal Internal Revenue Code from an employer shall be treated as 
104.15 	employed by that employer, and the differential wage payment will be treated as 
104.16 	compensation for purposes of applying the limits on annual additions under section 415(c) 
104.17 	of the federal Internal Revenue Code.

104.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

104.19 	Sec. 3. Minnesota Statutes 2022, section 356.611, is amended by adding a subdivision to 
104.20 	read:
104.21 		Subd. 6.Covered retirement plan. As used in this section, "covered retirement plan" 
104.22 	means any of the following plans:
104.23 	(1) the legislator's retirement plan, established by chapter 3A, including constitutional 
104.24 	officers as specified in that chapter;
104.25 	(2) the general state employees retirement plan of the Minnesota State Retirement System, 
104.26 	established by chapter 352;
104.27 	(3) the correctional state employees retirement plan of the Minnesota State Retirement 
104.28 	System, established by chapter 352;
104.29 	(4) the State Patrol retirement plan, established by chapter 352B;
104.30 	(5) the unclassified state employees retirement plan, established by chapter 352D;
104.31 	(6) the general employees retirement plan of the Public Employees Retirement 
104.32 	Association, established by chapter 353;
105.1 	(7) the public employees police and fire retirement plan of the Public Employees 
105.2 	Retirement Association, established by chapter 353;
105.3 	(8) the public employees defined contribution plan, established by chapter 353D;
105.4 	(9) the local government correctional service retirement plan of the Public Employees 
105.5 	Retirement Association, established by chapter 353E;
105.6 	(10) the statewide volunteer firefighter retirement plan, established by chapter 353G;
105.7 	(11) the Teachers Retirement Association, established by chapter 354;
105.8 	(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
105.9 	(13) the higher education individual retirement account plan, established by chapter 
105.10 	354B;
105.11 	(14) the higher education supplemental retirement plan, established by chapter 354C;
105.12 	(15) a retirement plan of a volunteer firefighter retirement association subject to chapter 
105.13 	424A;
105.14 	(16) the judges retirement plan, established by chapter 490; or
105.15 	(17) the Bloomington Fire Department Relief Association governed by Laws 2013, 
105.16 	chapter 111, article 5, sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws 
105.17 	1965, chapter 446, as amended.

105.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

105.19 	Sec. 4. [356.612] LIMITATION ON BENEFITS AND CONTRIBUTIONS.
105.20 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
105.21 	the meanings given.
105.22 	(b) "Annual addition" means the sum for the limitation year of all pretax and after-tax 
105.23 	contributions made by the member or the member's employer and credited to an account in 
105.24 	the name of the member in any defined contribution plan maintained by the employer.
105.25 	(c) "Annuity starting date" means the first day of the first period for which an amount 
105.26 	is payable as an annuity or, in the case of a benefit not payable in the form of an annuity, 
105.27 	the first day on which all events have occurred which entitle the member to the benefit.
105.28 	(d) "Compensation" means the compensation actually paid or made available to a member 
105.29 	or participant for any limitation year, including all items of remuneration described in Code 
105.30 	of Federal Regulations, title 26, section 1.415(c)-2(b), and excluding all items of remuneration 
106.1 	described in Code of Federal Regulations, title 26, section 1.415(c)-2(c). Compensation for 
106.2 	pension plan purposes for any limitation year shall not exceed the applicable federal 
106.3 	compensation limit described in section 356.611, subdivision 2.
106.4 	(e) "Limitation year" means the calendar year or fiscal year, whichever is applicable to 
106.5 	the particular pension plan.
106.6 	(f) "Maximum permissible benefit" means an annual benefit of $160,000, automatically 
106.7 	adjusted under section 415(d) of the Internal Revenue Code for each limitation year ending 
106.8 	after December 31, 2001, payable in the form of a single life annuity. The new limitation 
106.9 	shall apply to limitation years ending with or within the calendar year of the date of the 
106.10 	adjustment, but a member's benefits shall not reflect the adjusted limit prior to January 1 of 
106.11 	that calendar year. The maximum permissible benefit amount shall be further adjusted as 
106.12 	follows:
106.13 	(1) if the member has less than ten years of participation, the maximum permissible 
106.14 	benefit shall be multiplied by a fraction, the numerator of which is the number of years, or 
106.15 	part thereof, but not less than one year, of participation in the plan, and the denominator of 
106.16 	which is ten;
106.17 	(2) for a member who is not a qualified participant, if the annual benefit begins before 
106.18 	the member has attained 62 years of age, the determination as to whether the maximum 
106.19 	permissible benefit limit has been satisfied shall be made, in accordance with regulations 
106.20 	prescribed by the United States secretary of the treasury, by reducing the limit so that the 
106.21 	limit, as so reduced, equals an annual benefit, beginning when the annual benefit actually 
106.22 	begins, which is equivalent to a $160,000, as adjusted, annual benefit beginning at 62 years 
106.23 	of age; and
106.24 	(3) if the annual benefit begins after the member has attained 65 years of age, the 
106.25 	determination as to whether the maximum permissible benefit limit has been satisfied shall 
106.26 	be made, in accordance with regulations prescribed by the United States secretary of the 
106.27 	treasury, by increasing the limit so that the limit, as so increased, equals an annual benefit, 
106.28 	beginning when the annual benefit actually begins, which is equivalent to a $160,000, as 
106.29 	adjusted, annual benefit beginning at 65 years of age.
106.30 	(g) "Qualified participant" means a member of a defined benefit plan listed in section 
106.31 	356.611, subdivision 6, with respect to whom the period of service taken into account in 
106.32 	determining the amount of the benefit under such defined benefit plan includes at least 15 
106.33 	years of service of the member:
107.1 	(1) as a full-time employee of any police department or fire department which is organized 
107.2 	and operated by the state, Indian Tribal government, or any political subdivision maintaining 
107.3 	such defined benefit plan to provide police protection, firefighting services, or medical 
107.4 	services for any area within the jurisdiction of the state, Indian Tribal government, or political 
107.5 	subdivision; or
107.6 	(2) as a member of the Armed Forces of the United States.
107.7 		Subd. 2.Annual benefit limitations; defined benefit plans.  (a) For a defined benefit 
107.8 	plan listed in section 356.611, subdivision 6, the annual benefit payable to a member shall 
107.9 	not exceed the maximum permissible benefit. If the benefit the member would otherwise 
107.10 	receive for a limitation year would result in the payment of an annual benefit in excess of 
107.11 	the maximum permissible benefit, the benefit shall be reduced to the extent necessary so 
107.12 	the benefit does not exceed the maximum permissible benefit.
107.13 	(b) For purposes of applying the limitation in paragraph (a), an annual benefit that is 
107.14 	payable in any form other than a single life annuity shall be adjusted to an actuarially 
107.15 	equivalent single life annuity that equals, if the annuity starting date is in a plan year 
107.16 	beginning after 2005, the annual amount of the single life annuity commencing at the same 
107.17 	annuity starting date that has the same actuarial present value as the member's form of 
107.18 	benefit, using whichever of the following produces the greatest annual amount:
107.19 	(1) the interest rate and the mortality table or other tabular factor specified in the plan 
107.20 	for adjusting benefits in the same form;
107.21 	(2) a 5.5 percent interest rate assumption and the applicable mortality table; or
107.22 	(3) the applicable interest rate under section 417(e)(3) of the Internal Revenue Code and 
107.23 	the applicable mortality table, divided by 1.05.
107.24 	(c) If a member participated in more than one pension plan in which the employer 
107.25 	participates, the benefits under each plan must be reduced proportionately to satisfy the 
107.26 	limitation in paragraph (a).
107.27 		Subd. 3.Annual addition limitation; defined contribution plans. For any limitation 
107.28 	year, the annual additions by or on behalf of a member to a defined contribution plan listed 
107.29 	in section 356.611, subdivision 6, shall not exceed the lesser of:
107.30 	(1) 100 percent of the member's compensation for the limitation year; or
107.31 	(2) the dollar limit in effect for the limitation year under section 415(c)(1)(A) of the 
107.32 	Internal Revenue Code, as adjusted by the United States secretary of the treasury under 
107.33 	section 415(d)(1)(C) of the Internal Revenue Code.
108.1 		Subd. 4.Incorporation by reference. Any requirements of section 415(b) and (c) of 
108.2 	the Internal Revenue Code and related regulations and agency guidance not addressed by 
108.3 	this section shall be considered incorporated by reference, including provisions applicable 
108.4 	to a qualified participant and to survivor and disability benefits. This section shall be 
108.5 	interpreted in a manner that is consistent with the requirements of sections 415(b) and (c) 
108.6 	of the Internal Revenue Code and the related regulations.

108.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

108.8 	Sec. 5. [356.614] LIMITATION ON USE OF FORFEITURES.
108.9 	This section applies to any defined benefit plan listed in section 356.611, subdivision 
108.10 	6. Unless otherwise permitted by section 401(a)(8) of the Internal Revenue Code, forfeitures 
108.11 	must not be applied to increase the benefits any participant would otherwise receive under 
108.12 	the plan at any time prior to the termination of the plan or the complete discontinuance of 
108.13 	employer contributions.

108.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

108.15 	Sec. 6. Minnesota Statutes 2022, section 356.62, is amended to read:
108.16 	356.62 PAYMENT OF EMPLOYEE CONTRIBUTION.
108.17 		Subdivision 1.Definitions (a) For purposes of this section, the following terms have 
108.18 	the meanings given.
108.19 	(b) "Employee" means any person covered by a public pension or retirement plan.
108.20 	(c) "Employee contributions" means any sums deducted from the employee's salary or 
108.21 	wages or otherwise paid in lieu thereof, regardless of whether they are denominated 
108.22 	contributions by the public pension or retirement plan.
108.23 	(d) "Public pension or retirement plan" means a covered retirement plan listed in section 
108.24 	356.611, subdivision 6, or any other public retirement plan to which section 414(h)(2) of 
108.25 	the Internal Revenue Code applies.
108.26 		Subd. 2.Pick up of employee contributions. (a) For purposes of any public pension 
108.27 	or retirement plan, as defined in section 356.63, paragraph (b), each employer shall pick up 
108.28 	the employee contributions required under law or under the pension plan document for all 
108.29 	salaries. If the United States Treasury Department rules that under section 414(h) of the 
108.30 	Internal Revenue Code of 1986, as amended through December 31, 1992, that these picked 
108.31 	up contributions are not includable in the employee's adjusted gross income until they are 
109.1 	distributed or made available, then these picked up contributions must be treated as employer 
109.2 	contributions in determining tax treatment under the Internal Revenue Code of 1986 and 
109.3 	the employer shall discontinue withholding federal income taxes on the amount of these 
109.4 	contributions. The employer shall pay these picked up contributions from the same source 
109.5 	of funds as is used to pay the salary of the employee. The employer shall pick up these 
109.6 	employee contributions by a reduction in the cash salary of the employee.
109.7 	(b) Employee contributions that are picked up must be treated for all purposes of the 
109.8 	public pension or retirement plan in the same manner and to the same extent as employee 
109.9 	contributions that were made before the date on which the employee contributions pick up 
109.10 	began. The amount of the employee contributions that are picked up must be included in 
109.11 	the salary upon which retirement coverage is credited and upon which retirement and 
109.12 	survivor's benefits are determined. For purposes of this section, "employee" means any 
109.13 	person covered by a public pension plan. For purposes of this section, "employee 
109.14 	contributions" include any sums deducted from the employee's salary or wages or otherwise 
109.15 	paid in lieu thereof, regardless of whether they are denominated contributions by the public 
109.16 	pension plan.
109.17 	(c) The employing unit shall supply each employee and the commissioner of revenue 
109.18 	with an information return indicating the amount of the employer's picked-up contributions 
109.19 	for the calendar year that were not subject to withholding. This return must be provided to 
109.20 	the employee not later than January 31 of the succeeding calendar year. The commissioner 
109.21 	of revenue shall prescribe the form of the return and the provisions of section 289A.12 must 
109.22 	apply to the extent not inconsistent with the provisions of this section.

109.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

109.24 	Sec. 7. [356.633] DIRECT ROLLOVERS.
109.25 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
109.26 	the meanings given.
109.27 	(b) "Distributee" means:
109.28 	(1) a participant in a covered retirement plan listed in section 356.611, subdivision 6;
109.29 	(2) the surviving spouse of a participant;
109.30 	(3) the former spouse of the participant who is the alternate payee under a qualified 
109.31 	domestic relations order as defined in section 414(p) of the Internal Revenue Code, or who 
109.32 	is a recipient of a court-ordered equitable distribution of marital property, as provided in 
109.33 	section 518.58; or
110.1 	(4) a nonspousal beneficiary of a participant who qualifies for a distribution under the 
110.2 	plan and is a designated beneficiary as defined in section 401(a)(9)(E) of the Internal Revenue 
110.3 	Code.
110.4 	(c) "Eligible retirement plan" means:
110.5 	(1) an individual retirement account under section 408(a) or 408A of the Internal Revenue 
110.6 	Code;
110.7 	(2) an individual retirement annuity plan under section 408(b) of the Internal Revenue 
110.8 	Code;
110.9 	(3) an annuity plan under section 403(a) of the Internal Revenue Code;
110.10 	(4) a qualified trust plan under section 401(a) of the Internal Revenue Code that accepts 
110.11 	the distributee's eligible rollover distribution;
110.12 	(5) an annuity contract under section 403(b) of the Internal Revenue Code;
110.13 	(6) an eligible deferred compensation plan under section 457(b) of the Internal Revenue 
110.14 	Code, which is maintained by a state or local government and which agrees to separately 
110.15 	account for the amounts transferred into the plan;
110.16 	(7) in the case of an eligible rollover distribution to a nonspousal beneficiary, an 
110.17 	individual account or annuity treated as an inherited individual retirement account under 
110.18 	section 402(c)(11) of the Internal Revenue Code; or
110.19 	(8) a savings incentive match plan for employees of small employers (SIMPLE) individual 
110.20 	retirement account under section 408(p) of the Internal Revenue Code, provided that the 
110.21 	rollover distribution is made after the two-year period beginning on the date the distributee 
110.22 	first participated in any qualified salary reduction arrangement maintained by the distributee's 
110.23 	employer under section 408(p)(2) of the Internal Revenue Code, as described in section 
110.24 	72(t)(6) of the Internal Revenue Code.
110.25 	(d) "Eligible rollover distribution" means any distribution of all or any portion of the 
110.26 	balance to the credit of the distributee. An eligible rollover distribution does not include:
110.27 	(1) a distribution that is one of a series of substantially equal periodic payments, 
110.28 	receivable annually or more frequently, that is made for the life or life expectancy of the 
110.29 	distributee, the joint lives or joint life expectancies of the distributee and the distributee's 
110.30 	designated beneficiary, or for a specified period of ten years or more;
110.31 	(2) a distribution that is required under section 401(a)(9) of the Internal Revenue Code; 
110.32 	or
111.1 	(3) any other exception required by law or the Internal Revenue Code.
111.2 		Subd. 2.Right to elect direct rollover. Except as provided in subdivision 3 for after-tax 
111.3 	contributions, a distributee may elect, at the time and in the manner prescribed by the plan 
111.4 	administrator, to have all or any portion of an eligible rollover distribution paid directly to 
111.5 	an eligible retirement plan as specified by the distributee.
111.6 		Subd. 3.Distributions of after-tax contributions. For distributions of after-tax 
111.7 	contributions which are not includable in gross income, the after-tax portion may be 
111.8 	transferred only to an individual retirement account or annuity described in section 408(a) 
111.9 	or (b) of the Internal Revenue Code, to a Roth individual retirement account described in 
111.10 	section 408A of the Internal Revenue Code, to a qualified plan described in either section 
111.11 	401(a) of the Internal Revenue Code, or to an annuity contract described in section 403(b) 
111.12 	of the Internal Revenue Code, that agrees to separately account for the amounts transferred, 
111.13 	including separately accounting for the portion of the distribution which is includable in 
111.14 	gross income and the portion of the distribution which is not includable.

111.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

111.16 	Sec. 8. Minnesota Statutes 2022, section 356.635, subdivision 1, is amended to read:
111.17 		Subdivision 1.Retirement benefit commencement Definitions. (a) For purposes of 
111.18 	this section, the following terms have the meanings given.
111.19 	(a) the retirement benefit of a member or participant must begin to be distributed or, if 
111.20 	a lump sum, be distributed no later than the member's or participant's required beginning 
111.21 	date. "Required beginning date" means April 1 of the calendar year following the later of 
111.22 	(1) the calendar year in which the member or the participant attains the age specified in 
111.23 	section 401(a)(9)(C)(i)(I) of the Internal Revenue Code, or (2) the calendar year in which 
111.24 	the member or participant terminates employment.
111.25 	(b) A pension or defined contribution plan shall not be required to obtain the consent of 
111.26 	a member or participant to a distribution if the distribution is required to satisfy the 
111.27 	requirements of paragraph (a).
111.28 	(b) "Beneficiary" means the person designated as the beneficiary under the terms of the 
111.29 	applicable covered retirement plan.
111.30 	(c) "Covered retirement plan" means a pension or retirement plan listed in section 
111.31 	356.611, subdivision 6.
112.1 	(d) "Designated beneficiary" means an individual beneficiary within the meaning of 
112.2 	section 401(a)(9)(E)(i) of the Internal Revenue Code.
112.3 	(e) "Distribution calendar year" means a calendar year for which a minimum distribution 
112.4 	is required. For distributions beginning before the participant's death, the first distribution 
112.5 	calendar year is the calendar year immediately preceding the calendar year which contains 
112.6 	the participant's required beginning date. For distributions beginning after the participant's 
112.7 	death, the first distribution calendar year is the calendar year in which distributions are 
112.8 	required to begin under subdivision 2a, paragraph (b). The required minimum distribution 
112.9 	for the participant's first distribution calendar year shall be made on or before the participant's 
112.10 	required beginning date.
112.11 	(f) "Eligible designated beneficiary" means a designated beneficiary who meets the 
112.12 	additional criteria under section 401(a)(9)(E)(ii) of the Internal Revenue Code.
112.13 	(g) "Participant's account balance" means the account balance as of the last valuation 
112.14 	date in the valuation calendar year increased by the amount of any contributions made and 
112.15 	allocated to the account balance as of dates in the valuation calendar year after the valuation 
112.16 	date and decreased by distributions made in the valuation calendar year after the valuation 
112.17 	date. The account balance for the valuation calendar year includes any amounts rolled over 
112.18 	or transferred to the plan either in the valuation calendar year or in the distribution calendar 
112.19 	year if distributed or transferred in the valuation calendar year.
112.20 	(h) "Required beginning date" means April 1 of the calendar year following the later of:
112.21 	(1) the calendar year in which the member or the participant attains the age specified in 
112.22 	section 401(a)(9)(C)(i)(I) of the Internal Revenue Code; or
112.23 	(2) the calendar year in which the member or participant terminates employment.
112.24 	(i) "Valuation calendar year" means the calendar year immediately preceding the 
112.25 	distribution calendar year.

112.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

112.27 	Sec. 9. Minnesota Statutes 2022, section 356.635, is amended by adding a subdivision to 
112.28 	read:
112.29 		Subd. 1a.Required beginning date. (a) Notwithstanding any state law to the contrary, 
112.30 	the retirement benefit of a member or participant must begin to be distributed or, if a lump 
112.31 	sum, be distributed no later than the member's or participant's required beginning date.
113.1 	(b) A pension or retirement plan is not required to obtain the consent of a member or 
113.2 	participant to a distribution if the distribution is required to satisfy the requirements of 
113.3 	paragraph (a). If the plan is unable to obtain the consent of a member or participant to a 
113.4 	distribution that is required to satisfy the requirements of paragraph (a), the plan must make 
113.5 	the required distribution to the member or participant. If the plan is a defined benefit plan 
113.6 	that permits the distribution to be in the form of an annuity, the required distribution must 
113.7 	be:
113.8 	(1) in the form of a single life annuity if the plan administrator's records do not indicate 
113.9 	that the member is married; or
113.10 	(2) in the form of a 50 percent joint and survivor annuity naming the member's spouse 
113.11 	as survivor if the plan administrator's records indicate that the member is married.

113.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

113.13 	Sec. 10. Minnesota Statutes 2022, section 356.635, subdivision 2, is amended to read:
113.14 		Subd. 2.Required minimum distributions. Notwithstanding any state law to the 
113.15 	contrary:
113.16 	(1) distributions shallfrom a covered retirement plan must be determined and made as 
113.17 	required underin accordance with a reasonable, good faith interpretation of the requirements 
113.18 	of section 401(a)(9) of the Internal Revenue Code as applicable to governmental plans, as 
113.19 	defined under section 414(d) of the Internal Revenue Code, and the treasury regulations 
113.20 	adopted under that section 401(a)(9), including, but not limited to, the incidental death 
113.21 	benefit provisions of section 401(a)(9)(G) of the Internal Revenue Code.; and
113.22 	(2) the entire interest of a member of participant under a covered retirement plan must 
113.23 	begin to be distributed or, if a lump sum, be distributed no later than the member's or 
113.24 	participant's required beginning date.

113.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

113.26 	Sec. 11. Minnesota Statutes 2022, section 356.635, is amended by adding a subdivision 
113.27 	to read:
113.28 		Subd. 2a.Required distributions from defined contribution plans. (a) This section 
113.29 	applies to any covered retirement plan that is a defined contribution plan, including but not 
113.30 	limited to the following:
113.31 	(1) the unclassified state employees retirement plan, established by chapter 352D;
114.1 	(2) the public employees defined contribution plan, established by chapter 353D;
114.2 	(3) the defined contribution plan that is part of the statewide volunteer firefighter 
114.3 	retirement plan, established by chapter 353G;
114.4 	(4) the higher education individuals retirement account plan, established by chapter 
114.5 	354B;
114.6 	(5) the higher education supplemental retirement plan, established by chapter 354C; and
114.7 	(6) a defined contribution relief association, as defined under section 424A.001, 
114.8 	subdivision 1c.
114.9 	(b) If the participant dies before the required minimum distribution begins, the 
114.10 	participant's account must be distributed in a lump sum no later than as follows:
114.11 	(1) if the participant's account balance is payable to an eligible designated beneficiary, 
114.12 	the distribution must be made by December 31 of the calendar year immediately following 
114.13 	the calendar year in which the participant died. If the eligible designated beneficiary is the 
114.14 	surviving spouse, the surviving spouse may elect to delay payment until December 31 of 
114.15 	the calendar year in which the participant would have attained the participant's required 
114.16 	beginning date. Effective for calendar years beginning after December 31, 2023, a surviving 
114.17 	spouse who is the member's sole designated beneficiary may elect to be treated as if the 
114.18 	surviving spouse were the member as provided under section 401(a)(9)(B)(iv) of the Internal 
114.19 	Revenue Code;
114.20 	(2) if the participant's account balance is payable to a beneficiary that is not a designated 
114.21 	beneficiary, the participant's account must be distributed by December 31 of the calendar 
114.22 	year containing the fifth anniversary of the participant's death; or
114.23 	(3) if the participant's account balance is payable to a designated beneficiary who is not 
114.24 	an eligible designated beneficiary, the participant's account must be distributed by December 
114.25 	31 of the calendar year containing the tenth anniversary of the participant's death.
114.26 	(c) Upon the death of the participant after distribution of the participant's account balance 
114.27 	begins, any remaining portion of the participant's account balance shall continue to be 
114.28 	distributed at least as rapidly as under the method of distribution in effect at the time of the 
114.29 	participant's death, provided that the portion of the participant's account balance payable to 
114.30 	a designated beneficiary who is not an eligible designated beneficiary must be distributed 
114.31 	in its entirety by December 31 of the calendar year containing the tenth anniversary of the 
114.32 	participant's death.
115.1 	(d) Upon the death of an eligible designated beneficiary, or the attainment of the age of 
115.2 	majority of an eligible designated beneficiary who is a minor child of the participant, before 
115.3 	distribution of the participant's entire account balance under paragraphs (b) or (c), the 
115.4 	remainder of the participant's account balance shall be distributed by December 31 of the 
115.5 	calendar year containing the tenth anniversary of the eligible designated beneficiary's death, 
115.6 	or by December 31 of the calendar year in which the child attains the age of majority plus 
115.7 	ten years, as applicable.
115.8 	(e) Notwithstanding any other provisions of this subdivision, a participant or beneficiary, 
115.9 	who would have been required to receive required minimum distributions in 2020 (or paid 
115.10 	in 2021 for the 2020 calendar year for a participant with a required beginning date of April 
115.11 	1, 2021) but for the enactment of Section 401(a)(9)(I) of the Internal Revenue Code, and 
115.12 	who would have satisfied that requirement by receiving a distribution that satisfies the 
115.13 	required minimum distribution for 2020, will receive that distribution unless the participant 
115.14 	or beneficiary chooses not to receive the distribution. Solely for purposes of applying the 
115.15 	direct rollover provisions of section 356.633, such distributions will be treated as eligible 
115.16 	rollover distributions in 2020.

115.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

115.18 	Sec. 12. [356.636] CORRECTION OF ERRORS.
115.19 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
115.20 	the meanings given.
115.21 	(b) "Pension fund" means the Minnesota State Retirement System, the Public Employees 
115.22 	Retirement Association, the Teachers Retirement Association, and the St. Paul Teachers 
115.23 	Retirement Fund Association.
115.24 	(c) "Tax qualification" means compliance with all applicable requirements of section 
115.25 	401(a) or 457(b) of the Internal Revenue Code.
115.26 		Subd. 2.Correction of errors. (a) The executive director of a pension fund may correct 
115.27 	an operational, demographic, or employer or employee eligibility error, or an error in a plan 
115.28 	document that is not a statute if the executive director determines that correction is necessary 
115.29 	or appropriate to preserve and protect the tax qualification of any pension or retirement plan 
115.30 	listed in section 356.611, subdivision 6, that is part of the pension fund. The method of 
115.31 	correction must comply with the Internal Revenue Service Employee Plans Compliance 
115.32 	Resolution System (EPCRS) or any successor thereto, if the EPCRS addresses the error and 
115.33 	correction.
116.1 	(b) To the extent deemed necessary by the executive director to implement correction, 
116.2 	the executive director may:
116.3 	(1) make distributions;
116.4 	(2) transfer assets;
116.5 	(3) recover an overpayment by reducing future benefit payments or designating 
116.6 	appropriate revenue or source of funding that will restore to the plan the amount of the 
116.7 	overpayment; or
116.8 	(4) take any other action that will restore the plan and any affected member or participant 
116.9 	to the position the plan, member, or participant would have been in had the error not occurred.
116.10 	(c) An executive director may correct an error under paragraph (a) or (b) without regard 
116.11 	to any statute that imposes a time limitation on making such correction.
116.12 		Subd. 3.Annual report. The executive director of each pension fund must report 
116.13 	annually, no later than each February 1, to the chair and executive director of the Legislative 
116.14 	Commission on Pensions and Retirement on whether the executive director of the pension 
116.15 	fund corrected any operational, demographic, employer or employee eligibility, or plan 
116.16 	document error during the preceding calendar year. The report must describe the error, the 
116.17 	pension or retirement plan affected by the error, the method of correction, and the cost, if 
116.18 	any, to the pension or retirement plan, employee, or employer of the error and correction.

116.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

116.20 	Sec. 13. WORK GROUP ON AMORTIZATION.
 116.21 		Subdivision 1.Work group established. The executive director of the Legislative 
116.22 	Commission on Pensions and Retirement (commission executive director) must convene a 
116.23 	work group for the purpose of recommending legislation amending Minnesota Statutes, 
116.24 	section 356.215, subdivision 11, that will update the statute to conform to current actuarial 
116.25 	best practices for amortizing liabilities.
116.26 		Subd. 2.Membership. (a) The members of the work group are the following:
116.27 	(1) the executive director of the Minnesota State Retirement System or the executive 
116.28 	director's designee and a second member of the Minnesota State Retirement System staff 
116.29 	designated by the executive director;
116.30 	(2) the executive director of the Public Employees Retirement Association or the 
116.31 	executive director's designee and a second member of the Public Employees Retirement 
116.32 	Association staff designated by the executive director;
117.1 	(3) the executive director of the Teachers Retirement Association or the executive 
117.2 	director's designee and a second member of the Teachers Retirement Association staff 
117.3 	designated by the executive director; and
117.4 	(4) the executive director of the St. Paul Teachers Retirement Fund Association, 
117.5 	designated by the executive director of the St. Paul Teachers Retirement Fund Association 
117.6 	or the executive director's designee.
117.7 	(b) The commission executive director may invite others, including the commission's 
117.8 	actuary, to participate in one or more meetings of the work group.
117.9 	(c) The organizations specified in paragraph (a) must provide the commission executive 
117.10 	director with the names and contact information for the representatives who will serve on 
117.11 	the work group by June 14, 2024.
117.12 		Subd. 3.Scope. In arriving at the work group's recommendation for legislation or 
117.13 	alternatives for legislation, the work group must consider:
117.14 	(1) layered amortization;
117.15 	(2) whether amortization policy should be regulated by statute, addressed in an appendix 
117.16 	to the commission's standards for actuarial work, or documented elsewhere;
117.17 	(3) whether all pension plans must employ the same approach to amortization;
117.18 	(4) whether the proposed legislation will result in any cost to the pension funds and, if 
117.19 	so, estimates of the cost; and
117.20 	(5) whether changes to amortization will require the approval of the Legislative 
117.21 	Commission on Pensions and Retirement.
117.22 		Subd. 4.Due date for submitting recommendation to the commission. The commission 
117.23 	executive director must submit the recommendation of the work group to the chair of the 
117.24 	Legislative Commission on Pensions and Retirement by January 10, 2025.
117.25 		Subd. 5.Meetings. (a) The commission executive director must convene the first meeting 
117.26 	of the work group no later than August 1, 2024, and will serve as chair.
117.27 	(b) Meetings may be conducted remotely or in person or a combination of remotely and 
117.28 	in person.
117.29 	(c) In-person meetings must be held in the offices of the Legislative Coordinating 
117.30 	Commission or in the Retirement Systems of Minnesota Building in St. Paul.
118.1 		Subd. 6.Compensation; lobbying; retaliation. (a) Members of the work group serve 
118.2 	without compensation.
118.3 	(b) Participation in the work group is not lobbying under Minnesota Statutes, chapter 
118.4 	10A.
118.5 	(c) An individual's employer or an association of which an individual is a member must 
118.6 	not retaliate against the individual because of the individual's participation in the work 
118.7 	group.
118.8 		Subd. 7.Administrative support. Commission staff must provide administrative support 
118.9 	for the work group.
118.10 		Subd. 8.Expiration. The work group expires June 30, 2025.

118.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

118.12 	Sec. 14. REVISOR INSTRUCTION.
 118.13 	The revisor of statutes shall renumber each section of Minnesota Statutes listed in column 
118.14 	A with the number listed in column B. The revisor shall also make necessary cross-reference 
118.15 	changes consistent with the renumbering.

118.16		Column A
	Column B
	
118.17		356.631
	356.648
	
118.18		356.99
	356.637

118.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

118.20 	Sec. 15. REVISOR INSTRUCTION.
 118.21 	In Minnesota Statutes, the revisor of statutes shall delete the reference in column A and 
118.22 	insert the reference in column B.

118.23		Column A
	Column B
	
118.24		356.635, subdivision 1
	356.635, subdivision 1a
	
118.25		356.635, subdivision 3
	356.633, subdivision 2
	
118.26		356.635, subdivision 4
	356.633, subdivision 1, paragraph (c)
	
118.27		356.635, subdivision 5
	356.633, subdivision 1, paragraph (c)
	
118.28		356.635, subdivision 6
	356.633, subdivision 1, paragraph (b)
	
118.29		356.635, subdivision 7
	356.633, subdivision 1, paragraph (a)
	
118.30		356.635, subdivision 8
	356.614
	
118.31		356.635, subdivision 9a
	356.612, subdivision 1
	
118.32		356.635, subdivision 10
	356.612, subdivision 2
	
119.1		356.635, subdivision 11
	356.612, subdivision 3
	
119.2		356.635, subdivision 12
	356.612, subdivision 4
	
119.3		356.635, subdivision 13
	356.636, subdivision 2

119.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

119.5 	Sec. 16. REPEALER.
 119.6 	Minnesota Statutes 2022, section 356.635, subdivisions 3, 4, 5, 6, 7, 8, 9a, 10, 11, 12, 
119.7 	and 13, are repealed.

119.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

119.9 	ARTICLE 9
119.10 	STATE AID CLARIFICATION

119.11 	Section 1. Minnesota Statutes 2022, section 353.65, subdivision 3b, is amended to read:
119.12 		Subd. 3b.Direct state aid. (a) The state shallmust pay $4,500,000 on October 1, 2018, 
119.13 	and October 1, 2019, to the public employees police and fire retirement plan. By October 
119.14 	1 of each year after 2019, the state shallmust pay $9,000,000 to the public employees police 
119.15 	and fire retirement plan. The commissioner of management and budget shallmust pay the 
119.16 	aid specified in this subdivision. The amount required is annually appropriated from the 
119.17 	general fund to the commissioner of management and budget.
119.18 	(b) The aid under paragraph (a) continues until the earlier of:
119.19 	(1) the first day of the fiscal year following thethree consecutive fiscal yearyears in 
119.20 	which, for each fiscal year, the actuarial value of assets of the fund equals or exceeds 100 
119.21 	percent of the actuarial accrued liabilities as reported by the actuary retained under section 
119.22 	356.214 in the annual actuarial valuation prepared under section 356.215; or
119.23 	(2) July 1, 2048.

119.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

119.25 	Sec. 2. Minnesota Statutes 2022, section 354.435, subdivision 4, is amended to read:
119.26 		Subd. 4.Aid expiration. The aid amounts specified in this section shallmust continue 
119.27 	until the earlier of:
119.28 	(1) the first day of the fiscal year following thethree consecutive fiscal yearyears in 
119.29 	which, for each fiscal year, the actuarial value of assets of the fund equals or exceeds 100 
120.1 	percent of the actuarial accrued liabilities as reported by the actuary retained under section 
120.2 	356.214 in the annual actuarial valuation prepared under section 356.215; or
120.3 	(2) July 1, 2048.

120.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

120.5 	Sec. 3. Minnesota Statutes 2022, section 354.436, subdivision 3, is amended to read:
120.6 		Subd. 3.Aid expiration. The aid amounts specified in this section continue until the 
120.7 	earlier of:
120.8 	(1) the first day of the fiscal year following thethree consecutive fiscal yearyears in 
120.9 	which, for each fiscal year, the actuarial value of assets of the fund equals or exceeds 100 
120.10 	percent of the actuarial accrued liabilities as reported by the actuary retained under section 
120.11 	356.214 in the annual actuarial valuation prepared under section 356.215; or
120.12 	(2) July 1, 2048.

120.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

120.14 	Sec. 4. Minnesota Statutes 2022, section 354A.12, subdivision 3a, is amended to read:
120.15 		Subd. 3a. Direct state aid to first class city teachers retirement fund associations
120.16 	St. Paul Teachers Retirement Fund Association. (a) The state shallmust pay $2,827,000 
120.17 	to the St. Paul Teachers Retirement Fund Association.
120.18 	(b) In addition to other amounts specified in this subdivision, the state shallmust pay 
120.19 	$7,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.
120.20 	(c) In addition to the amounts specified in paragraphs (a) and (b), the state shallmust 
120.21 	pay $5,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.
120.22 	(d) The aid under this subdivision is payable October 1 annually. The commissioner of 
120.23 	management and budget shallmust pay the aid specified in this subdivision. The amount 
120.24 	required is appropriated annually from the general fund to the commissioner of management 
120.25 	and budget.

120.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

120.27 	Sec. 5. Minnesota Statutes 2022, section 354A.12, subdivision 3c, is amended to read:
120.28 		Subd. 3c.Termination of supplemental contributions and direct matching and state 
120.29 	aid. (a) The supplemental contributions payable to the St. Paul Teachers Retirement Fund 
120.30 	Association by Independent School District No. 625 under section 423A.02, subdivision 3, 
121.1 	and the aid under subdivision 3a, paragraphs (a) and (b),to (c), continue until the earlier 
121.2 	of:
121.3 	(1) the first day of the fiscal year following the yearthree consecutive fiscal years in 
121.4 	which, for each fiscal year, the actuarial value of assets of the fund equals or exceeds 100 
121.5 	percent of the actuarial accrued liability as reported by the actuary retained under section 
121.6 	356.214 in the most recent annual actuarial valuation prepared under section 356.215; or
121.7 	(2) July 1, 2048.
121.8 	(b) The aid under subdivision 3a, paragraph (c), continues until the earlier of:
121.9 	(1) the first day of the fiscal year following the fiscal year in which the actuarial value 
121.10 	of assets of the fund equals or exceeds 100 percent of the actuarial accrued liabilities as 
121.11 	reported by the actuary retained under section 356.214 in the annual actuarial valuation 
121.12 	prepared under section 356.215; or
121.13 	(2) July 1, 2048.

121.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

121.15 	Sec. 6. Minnesota Statutes 2022, section 423A.02, subdivision 5, is amended to read:
121.16 		Subd. 5.Termination of state aid programs. The amortization state aid and additional 
121.17 	amortization state aid programs continue until the earlier of:
121.18 	(1) the December 31 following the end of thethree consecutive fiscal yearyears in 
121.19 	which, for each fiscal year, the actuarial value of assets of the St. Paul Teachers Retirement 
121.20 	Fund Association or the Teachers Retirement Association equals or exceeds 100 percent of 
121.21 	the actuarial accrued liabilities as reported by the actuary retained under section 356.214
121.22 	in the annual actuarial valuation report prepared under section 356.215; or
121.23 	(2) July 1, 2048.

121.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

121.25 	Sec. 7. Minnesota Statutes 2022, section 423A.022, subdivision 5, is amended to read:
121.26 		Subd. 5.Aid termination. (a) The aid under subdivision 2, paragraph (a), clauses (1) 
121.27 	and (3), continues until the earlier of:
121.28 	(1) the December 1 following the end of thethree consecutive fiscal yearyears in which, 
121.29 	for each fiscal year, the actuarial value of assets of both the State Patrol retirement plan and 
121.30 	the public employees police and fire retirement plan equals or exceeds 90 percent of the 
122.1 	actuarial accrued liabilities as reported by the actuary retained under section 356.214 in the 
122.2 	annual actuarial valuation prepared under section 356.215; or
122.3 	(2) July 1, 2048.
122.4 	(b) The aid under subdivision 2, paragraph (a), clause (2), does not terminate.

122.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

122.6 	Sec. 8. Minnesota Statutes 2023 Supplement, section 477B.02, subdivision 3, is amended 
122.7 	to read:
122.8 		Subd. 3. Benefits requirements. (a) The fire department must have a separate subsidiary 
122.9 	incorporated firefighters':
122.10 	(1) be associated with a volunteer firefighter relief association that provides retirement 
122.11 	benefits or must;
122.12 	(2) participate in the statewide volunteer firefighter plan; or if the municipality solely 
122.13 	employs
122.14 	(3) have retirement coverage under the public employees police and fire retirement plan 
122.15 	for the department's full-time firefighters, as defined in section 299N.03, subdivision 5, 
122.16 	retirement coverage must be provided by the public employees police and fire retirement 
122.17 	plan or the fire department's part-time firefighters, or the fire department's full-time 
122.18 	firefighters and part-time firefighters; or
122.19 	(4) satisfy either clauses (1) and (3) or clauses (2) and (3).
122.20 	(b) For purposes of retirement benefits, a fire department may be associated with only 
122.21 	one volunteer firefighters'firefighter relief association or one account in the voluntary
122.22 	statewide volunteer firefighter retirement plan at one time.
122.23 	(b)(c) Notwithstanding paragraph (a), a municipality without a relief association as 
122.24 	described under section 424A.08, paragraph (a), may still qualify to receive fire state aid if 
122.25 	all other requirements of this section are met.

122.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

123.1 	ARTICLE 10
123.2 	CHANGES TO EXECUTIVE DIRECTOR QUALIFICATIONS AND 
123.3 	COMPENSATION

123.4 	Section 1. Minnesota Statutes 2022, section 353.03, subdivision 3a, is amended to read:
123.5 		Subd. 3a.Executive director. (a) Appointment. The board shallmust appoint an 
123.6 	executive director on the basis of education, experience in the retirement field, ability to 
123.7 	manage and lead system staff, and leadership ability to assist the board in setting a vision 
123.8 	for the system. The executive director must have had at least five years'years of experience 
123.9 	in either an executive levelexecutive-level management position, which has included 
123.10 	responsibility for pensions, deferred compensation, or employee benefits or a position with 
123.11 	responsibility for the governance, management, or administration of a retirement plan. The 
123.12 	executive director serves at the pleasure of the board. Notwithstanding any law to the 
123.13 	contrary, the board must set the salary of the executive director. The board must set the 
123.14 	salary of the executive director with reference to a salary range in the managerial plan in 
123.15 	effect under section 43A.18, subdivision 3. The board must designate the salary range and 
123.16 	the salary of the executive director, which must not exceed the limit for a position listed in 
123.17 	section 15A.0815, subdivision 2 maximum for the salary range.
123.18 	(b) Duties. The management of the association is vested in the executive director who 
123.19 	shall be the executive and administrative head of the association. The executive director 
123.20 	shall act as adviser to the board on all matters pertaining to the association and shall also 
123.21 	act as the secretary of the board. The executive director shall:
123.22 	(1) attend all meetings of the board;
123.23 	(2) prepare and recommend to the board appropriate rules to carry out the provisions of 
123.24 	this chapter;
123.25 	(3) establish and maintain an adequate system of records and accounts following 
123.26 	recognized accounting principles and controls;
123.27 	(4) designate, with the approval of the board, up to two persons who may serve in the 
123.28 	unclassified service and whose salaries are set in accordance with section 43A.18, subdivision 
123.29 	3, appoint a confidential secretary in the unclassified service, and appoint employees to 
123.30 	carry out this chapter, who are subject to chapters 43A and 179A in the same manner as are 
123.31 	executive branch employees;
123.32 	(5) organize the work of the association as the director deems necessary to fulfill the 
123.33 	functions of the association, and define the duties of its employees and delegate to them 
124.1 	any powers or duties, subject to the control of, and under such conditions as, the executive 
124.2 	director may prescribe;
124.3 	(6) with the approval of the board, contract for the services of an approved actuary, 
124.4 	professional management services, and any other consulting services as necessary to fulfill 
124.5 	the purposes of this chapter. All contracts are subject to chapter 16C. The commissioner of 
124.6 	administration shall not approve, and the association shall not enter into, any contract to 
124.7 	provide lobbying services or legislative advocacy of any kind. Any approved actuary retained 
124.8 	by the executive director shall function as the actuarial advisor of the board and the executive 
124.9 	director. In addition to filing requirements under section 356.214, any supplemental actuarial 
124.10 	valuations or experience studies shall be filed with the executive director of the Legislative 
124.11 	Commission on Pensions and Retirement. Copies of professional management survey reports 
124.12 	shall be transmitted to the secretary of the senate, the chief clerk of the house of 
124.13 	representatives, and the Legislative Reference Library as provided by section 3.195, and to 
124.14 	the executive director of the commission at the same time as reports are furnished to the 
124.15 	board. Only management firms experienced in conducting management surveys of federal, 
124.16 	state, or local public retirement systems shall be qualified to contract with the director 
124.17 	hereunder;
124.18 	(7) with the approval of the board provide in-service training for the employees of the 
124.19 	association;
124.20 	(8) make refunds of accumulated contributions to former members and to the designated 
124.21 	beneficiary, surviving spouse, legal representative or next of kin of deceased members or 
124.22 	deceased former members, as provided in this chapter;
124.23 	(9) determine the amount of the annuities and disability benefits of members covered 
124.24 	by the association and authorize payment of the annuities and benefits beginning as of the 
124.25 	dates on which the annuities and benefits begin to accrue, in accordance with the provisions 
124.26 	of this chapter;
124.27 	(10) pay annuities, refunds, survivor benefits, salaries, and necessary operating expenses 
124.28 	of the association;
124.29 	(11) prepare and submit to the board and the legislature an annual financial report 
124.30 	covering the operation of the association, as required by section 356.20;
124.31 	(12) prepare and submit biennial and annual budgets to the board for its approval and 
124.32 	submit the approved budgets to the Department of Management and Budget for approval 
124.33 	by the commissioner;
125.1 	(13) reduce all or part of the accrued interest payable under section 353.27, subdivisions 
125.2 	12, 12a, and 12b, or 353.28, subdivision 5, upon receipt of proof by the association of an 
125.3 	unreasonable processing delay or other extenuating circumstances of the employing unit; 
125.4 	and notwithstanding section 353.27, subdivision 7, may waive the payment of accrued 
125.5 	interest to the member if a credit has been taken by the employer to correct an employee 
125.6 	deduction taken in error and if the accrued interest is $10 or less. The executive director 
125.7 	shall prescribe and submit for approval by the board the conditions under which such interest 
125.8 	may be reduced; and
125.9 	(14) with the approval of the board, perform such other duties as may be required for 
125.10 	the administration of the association and the other provisions of this chapter and for the 
125.11 	transaction of its business.

125.12 	Sec. 2. Minnesota Statutes 2023 Supplement, section 354.06, subdivision 2, is amended 
125.13 	to read:
125.14 		Subd. 2.President; executive director. The board must annually elect one of its members 
125.15 	as president. It must elect an executive director. Notwithstanding any law to the contrary, 
125.16 	the board must set the salary of the executive director. The board must set the salary of the 
125.17 	executive director with reference to a salary range in the managerial plan in effect under 
125.18 	section 43A.18, subdivision 3. The board must designate the salary range and the salary of 
125.19 	the executive director, which must not exceed the limit for a position listed in section 
125.20 	15A.0815, subdivision 2 maximum for the salary range. The executive director shallmust 
125.21 	serve at the pleasure of the board and be the executive officer of the board, with the duties 
125.22 	prescribed in subdivision 2a and any additional duties that the board may prescribe. The 
125.23 	board must employ all other clerks and employees necessary to properly administer the 
125.24 	association. The board must appoint an executive director on the basis of education, 
125.25 	experience in the retirement field, ability to manage and lead system staff, and ability to 
125.26 	assist the board in setting a vision for the system. The executive director must have had at 
125.27 	least five years of experience in either an executive-level management position or in a 
125.28 	position with responsibility for the governance, management, or administration of a retirement 
125.29 	plan.

125.30 	Sec. 3. EFFECTIVE DATE.
 125.31 	Sections 1 to 2 are effective the day following final enactment.

126.1 	ARTICLE 11
126.2 	ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION
126.3 	TECHNICAL CHANGES

126.4 	Section 1. Minnesota Statutes 2022, section 354A.011, subdivision 7, is amended to read:
126.5 		Subd. 7.Association. "Association" or "teachers retirement fund association" means 
126.6 	the applicable teachers retirement fund associationSt. Paul Teachers Retirement Fund 
126.7 	Association established pursuant to this chapter.

126.8 	Sec. 2. Minnesota Statutes 2022, section 354A.021, subdivision 2, is amended to read:
126.9 		Subd. 2.Organization; board duties. (a) EachThe teachers retirement fund association 
126.10 	shallmust be organized and governed pursuant to this chapter and chapter 317A, except 
126.11 	that eachthe association shallmust be deemed to be a nonprofit corporation without coming 
126.12 	within the definition in section 317A.011, subdivision 6. Any corporate action of any teachers 
126.13 	retirement fund association taken prior to April 9, 1976, shallmust be deemed to be valid 
126.14 	if it conformed with Minnesota Statutes 1976, chapter 317 or 354A, or Revised Laws 1905, 
126.15 	chapter 58, as amended through April 9, 1976.
126.16 	(b) In addition to the other powers and duties of athe board of trustees of a first class 
126.17 	city teacherthe teachers retirement fund association, the board shallmust approve early 
126.18 	retirement and optional annuity factors, subject to review by the actuary retained by the 
126.19 	Legislative Commission on Pensions and Retirement; shallmust establish the schedule for 
126.20 	implementation of the approved factors; and shallmust notify the Legislative Commission 
126.21 	on Pensions and Retirement of the implementation schedule.

126.22 	Sec. 3. Minnesota Statutes 2022, section 354A.021, subdivision 3, is amended to read:
126.23 		Subd. 3.Fund. Within eachthe teachers retirement fund association there shallmust be 
126.24 	created a special retirement fund, which shallmust include all of the assets of the teachers 
126.25 	retirement fund association other than assets of a tax-sheltered annuity program and fund 
126.26 	authorized pursuant to subdivision 5 which were acquired for the specific purpose of being 
126.27 	credited to that fund. The special retirement fund shallmust be credited with all employee 
126.28 	and employer contributions, all interest and all other income authorized by law. Within the 
126.29 	special retirement fund there may be established separate special retirement fund accounts 
126.30 	for the purpose of providing convenience in the funding of and accounting for retirement 
126.31 	annuities and any authorized ancillary benefits.

127.1 	Sec. 4. Minnesota Statutes 2022, section 354A.021, subdivision 6, is amended to read:
127.2 		Subd. 6.Trustees' fiduciary obligation. The trustees or directors of eachthe teachers 
127.3 	retirement fund association shallmust administer eachthe fund in accordance with the 
127.4 	applicable portions of this chapter, of the articles of incorporation, of the bylaws, and of 
127.5 	chapters 356 and 356A. The purpose of this subdivision is to establish eachthe teachers 
127.6 	retirement fund association as a trust under the laws of the state of Minnesota for all purposes 
127.7 	related to section 401(a) of the Internal Revenue Code of the United States, including all 
127.8 	amendments.

127.9 	Sec. 5. Minnesota Statutes 2022, section 354A.021, subdivision 7, is amended to read:
127.10 		Subd. 7.Actuarial consultant. The board of trustees or directors of eachthe teachers 
127.11 	retirement fund association may contract for the services of an approved actuary and fix 
127.12 	the reasonable compensation for those services. Any approved actuary retained by the board 
127.13 	shallmust function as the actuarial advisor to the board and may perform actuarial valuations 
127.14 	and experience studies to supplement those performed by the actuary retained under section 
127.15 	356.214. Any supplemental actuarial valuations or experience studies must be filed with 
127.16 	the executive director of the Legislative Commission on Pensions and Retirement.

127.17 	Sec. 6. Minnesota Statutes 2022, section 354A.021, subdivision 8, is amended to read:
127.18 		Subd. 8.Audit by state auditor. The books and accounts of eachthe teachers retirement 
127.19 	fund association must be examined and audited periodically as considered necessary by the 
127.20 	state auditor. A full and detailed report of the examination and audit must be made and a 
127.21 	copy provided to the teachers retirement fund association board of trustees. The cost of any 
127.22 	examination and audit must be paid by the teachers retirement fund association in accordance 
127.23 	with section 6.56. For purposes of section 6.56, eachthe teachers retirement fund association 
127.24 	is considered a local governmental entity equivalent to a county, city, town, or school district.

127.25 	Sec. 7. Minnesota Statutes 2022, section 354A.021, subdivision 9, is amended to read:
127.26 		Subd. 9.Updated articles of incorporation and bylaws; filing. (a) On or before July 
127.27 	1, 2006, and within six months of the date of the approval of any amendment to the articles 
127.28 	of incorporation or bylaws, the chief administrative officer of each first class city teacher
127.29 	the teachers retirement fund association shallmust prepare and publish an updated 
127.30 	compilation of the articles of incorporation and the bylaws of the association.
127.31 	(b) The chief administrative officer of the first class city teacherteachers retirement fund 
127.32 	association must certify the accuracy and the completeness of the compilation.
128.1 	(c) The compilation of the articles of incorporation and bylaws of a first class city teacher
128.2 	the teachers retirement fund association must contain an index.
128.3 	(d) The compilation must be made available to association members and other interested 
128.4 	parties. The association may charge a fee for a copy that reflects the price of printing or 
128.5 	otherwise producing the copy. Two copies of The compilation must be filed, without charge, 
128.6 	by eachthe teachers retirement fund association with the LegislationLegislative Commission 
128.7 	on Pensions and Retirement, the Legislative Reference Library, the state auditor, the 
128.8 	commissioner of education, the chancellor of the Minnesota State Colleges and Universities 
128.9 	system, and the superintendent of the applicable school district Independent School District 
128.10 	No. 625, St. Paul. The compilation may be filed by email.
128.11 	(e) A first class city teacherThe teachers retirement fund association may contract with 
128.12 	the revisor of statutes for the preparation of the compilation.
128.13 	(f) If a first class city teacherthe teachers retirement fund association makes an updated 
128.14 	copy of its articles of incorporation and bylaws available on its website, the teachers 
128.15 	retirement fund association is not obligated to file a hard copy of the documents under 
128.16 	paragraph (d) for the applicable filing period.

128.17 	Sec. 8. Minnesota Statutes 2022, section 354A.05, is amended to read:
128.18 	354A.05 MEMBERSHIP IN A TEACHERS RETIREMENT ASSOCIATION IN 
128.19 	ST. PAUL.
128.20 	Teachers contributing to the respective teachers retirement fund association, as provided 
128.21 	in this chapter and the articles of incorporation and the bylaws of the association, are entitled 
128.22 	to the benefit of coverage by or entitlement to annuities or benefits from the association. 
128.23 	All teachers in a city of the first class in which there exists a teachers retirement fund 
128.24 	associationof Independent School District No. 625, St. Paul, are members of thatthe teachers 
128.25 	retirement fund association and participate in the benefits provided by the special retirement 
128.26 	fund.

128.27 	Sec. 9. Minnesota Statutes 2022, section 354A.091, is amended to read:
128.28 	354A.091 TEACHERS ON EXTENDED LEAVE.
128.29 		Subdivision 1.Retirement contributions. Notwithstanding any provision to the contrary 
128.30 	of this chapter or the articles of incorporation or bylaws of anthe association relating to the 
128.31 	salary figure to be used for the determination of contributions or the accrual of service credit 
128.32 	an elementary, secondary, or technical college teacher in the public schools of a city of the 
129.1 	first classIndependent School District No. 625, St. Paul, who is granted an extended leave 
129.2 	of absence pursuant to section 122A.46, or a teacher who is granted an extended leave of 
129.3 	absence under section 136F.43, may pay employee contributions to the applicable association 
129.4 	and shallmust be entitled to receive allowable service credit in thatthe association for each 
129.5 	year of leave, provided the member and the employing board make the required employer 
129.6 	contributions, in any proportion they may agree upon, to thatthe association during the 
129.7 	period of leave which shall not exceed five years. The state shallmust not make an employer 
129.8 	contribution on behalf of the teacher. The employee and employer contributions shallmust 
129.9 	be based upon the rates of contribution prescribed by section 354A.12 as applied to a salary 
129.10 	figure equal to the teacher's actual covered salary for the plan year immediately preceding 
129.11 	the leave. Payment of the employee and employer contributions authorized pursuant to this 
129.12 	section shallmust be made on or before June 30 of the fiscal year for which service credit 
129.13 	is to be received. No allowable service with respect to a year of extended leave of absence 
129.14 	shall be credited to a teacher until payment of the required employee and employer 
129.15 	contributions has been received by the association.
129.16 		Subd. 2.Membership retention. A teacher on extended leave under either section 
129.17 	122A.46 or 136F.43 whose employee and employer contributions are made to the applicable
129.18 	teachers retirement fund association pursuant to subdivision 1 shallmust retain membership 
129.19 	in the association for each year during which the contributions are made, under the same 
129.20 	terms and conditions as if the teacher had continued to teach in the district.
129.21 		Subd. 3.Effect of nonpayment. A teacher on extended leave under either section 
129.22 	122A.46 or 136F.43 who does not make employee contributions or whose employer 
129.23 	contribution is not made to the applicable teachers retirement fund association in any year 
129.24 	shallmust be deemed to have ceased to be an active member of the association and to have 
129.25 	ceased to render teaching services beginning in that year for purposes of this chapter and 
129.26 	the articles of incorporation and bylaws of the association, and may not pay employee or 
129.27 	employer contributions into the fund in any subsequent year of the leave. Nonpayment of 
129.28 	contributions into the fund shallmust not affect the rights or obligations of the teacher or 
129.29 	the employing school district under section 122A.46 or the Minnesota State Colleges and 
129.30 	Universities system under section 136F.43.
129.31 		Subd. 4.Failure to resume service. If a teacher who has made employee contributions 
129.32 	to the applicable teachers retirement fund association for the agreed maximum duration of 
129.33 	an extended leave does not resume teaching service in the first school year after that 
129.34 	maximum duration has elapsed, the teacher shallmust be deemed to have ceased to be an 
129.35 	active member of the association and to have ceased to render teaching services beginning 
130.1 	in that first school year after that maximum duration has elapsed for purposes of this chapter 
130.2 	and the articles of incorporation and bylaws of the association.
130.3 		Subd. 5.Applicability. The provisions of this section shallmust not apply to a teacher 
130.4 	who is discharged pursuant to section 122A.41 while the teacher is on an extended leave 
130.5 	of absence pursuant to section 122A.46. The provisions of this section also do not apply to 
130.6 	a teacher who is discharged for cause while the teacher is on an extended leave of absence 
130.7 	under section 136F.43.
130.8 		Subd. 6.Exclusive coverage. A teacher who makes employee contributions to and 
130.9 	receives allowable service credit in the applicable teacher'steachers retirement fund 
130.10 	association pursuant to this section may not make employee contributions or receive 
130.11 	allowable service credit for the same period of time in any other Minnesota public employee 
130.12 	pension plan, except a volunteer firefighters relief association governed by sections 424A.091
130.13 	to 424A.096 or the statewide volunteer firefighter plan governed by chapter 353G. This 
130.14 	subdivision shallmust not be construed to prohibit a member who pays employee 
130.15 	contributions and receives allowable service credit in the fund pursuant to this section in 
130.16 	any year from being employed as a substitute teacher by any school district during that year. 
130.17 	Notwithstanding the provisions of this chapter or the bylaws of a retirement association, a 
130.18 	teacher may not pay retirement contributions or receive allowable service credit in the fund 
130.19 	for teaching service rendered for any part of any year for which the teacher pays retirement 
130.20 	contributions or receives allowable service credit pursuant to section 354.094 or this section 
130.21 	while on an extended leave of absence under either section 122A.46 or 136F.43.

130.22 	Sec. 10. Minnesota Statutes 2022, section 354A.094, is amended to read:
130.23 	354A.094 QUALIFIED PART-TIME TEACHERS; PARTICIPATION IN FUND.
130.24 		Subdivision 1.Teachers, defined. For purposes of this section, the term "teachers" shall 
130.25 	havehas the meaning given in section 122A.15, subdivision 1, except that the term shall
130.26 	must not include superintendents.
130.27 		Subd. 2.Part-time teaching position, defined. For purposes of this section, the term 
130.28 	"part-time teaching position" shall meanmeans a teaching position within the district
130.29 	Independent School District No. 625, St. Paul, in which the teacher is employed for at least 
130.30 	50 full days or a fractional equivalent of 50 full days calculated using the appropriate 
130.31 	minimum number of hours which would result in a full day of service credit by the 
130.32 	appropriate association and for which the teacher is compensated in an amount not to exceed 
130.33 	80 percent of the compensation rate established by the board for a full-time teacher with 
130.34 	identical education and experience within the district.
131.1 		Subd. 3.Qualified part-time teacher program participation requirements. (a) A 
131.2 	teacher in the public schools of a city of the first classIndependent School District No. 625, 
131.3 	St. Paul, who is vested, or who has combined years of full-time teaching service in Minnesota 
131.4 	public elementary schools, Minnesota secondary schools, and Minnesota State Colleges 
131.5 	and Universities system at least equal to the number of years specified for vesting in the 
131.6 	applicable first class city teacher plan association, may, by agreement with the board of the 
131.7 	employing district, be assigned to teaching service within the district in a part-time teaching 
131.8 	position. The agreement must be executed before October 1 of the year for which the teacher 
131.9 	requests to make retirement contributions under subdivision 4. A copy of the executed 
131.10 	agreement must be filed with the executive director of the teachers retirement fund 
131.11 	association. If the copy of the executed agreement is filed with the association after October 
131.12 	1 of the year for which the teacher requests to make retirement contributions under 
131.13 	subdivision 4, the employing school district shallmust pay a fine of $5 for each calendar 
131.14 	day that elapsed since the October 1 due date. The association may not accept an executed 
131.15 	agreement that is received by the association more than 15 months late. The association 
131.16 	may not waive the fine required by this section.
131.17 	(b) Notwithstanding paragraph (a), if the teacher is also a legislator:
131.18 	(1) the agreement in paragraph (a) must be executed before March 1 of the school year 
131.19 	for which the teacher requests to make retirement contributions under subdivision 4; and
131.20 	(2) the fines specified in paragraph (a) apply if the employing unit does not file the 
131.21 	executed agreement with the executive director of the applicable teachers retirement fund 
131.22 	association by March 1.
131.23 		Subd. 4.Retirement contributions. Notwithstanding any provision to the contrary in 
131.24 	this chapter or the articles of incorporation or bylaws of anthe association relating to the 
131.25 	salary figure to be used for the determination of contributions or the accrual of service credit, 
131.26 	a teacher assigned to a part-time position under this section shallmust continue to make 
131.27 	employee contributions to and to accrue allowable service credit in the applicable association 
131.28 	during the period of part-time employment on the same basis and in the same amounts as 
131.29 	would have been paid and accrued if the teacher had been employed on a full-time basis 
131.30 	provided that, prior to June 30 each year the member and the employing board make that 
131.31 	portion of the required employer contribution to the applicable association in any proportion 
131.32 	which they may agree upon, that is based on the difference between the amount of 
131.33 	compensation that would have been paid if the teacher had been employed on a full-time 
131.34 	basis and the amount of compensation actually received by the teacher for services rendered 
131.35 	in the part-time assignment. The employer contributions to the applicable association on 
132.1 	behalf of the teacher shallmust be based on the amount of compensation actually received 
132.2 	by the teacher for the services rendered in the part-time assignment in the manner described 
132.3 	in section 354A.12, subdivision 2a. The employee and employer contributions shallmust 
132.4 	be based upon the rates of contribution prescribed by section 354A.12. Full membership, 
132.5 	accrual of allowable service credit and employee contributions for part-time teaching service 
132.6 	by a teacher pursuant to this section and section 354.66shallmust not continue for a period 
132.7 	longer than ten years.
132.8 		Subd. 5.Limits on outside coverage. A teacher entitled to full membership, accrual of 
132.9 	allowable service credit and employee contributions for part time teaching service pursuant 
132.10 	to this section shallmust not be entitled during the same period of time to be a member of, 
132.11 	accrue allowable service credit in or make employee contributions to any other Minnesota 
132.12 	public pension plan, except a volunteer firefighters relief association governed by sections 
132.13 	424A.091 to 424A.096 or the statewide volunteer firefighter plan governed by chapter 353G.
132.14 		Subd. 6.Insurance. AThe board of an employing districtIndependent School District 
132.15 	No. 625, St. Paul, entering into an agreement authorized by this section shallmust take all 
132.16 	steps necessary to assure continuance of any insurance programs furnished or authorized a 
132.17 	full-time teacher on an identical basis and with identical sharing of costs for a part time 
132.18 	teacher pursuant to this section.
132.19 		Subd. 7.Qualification. Only teachers who are in the bargaining unit as defined in section 
132.20 	179A.03, subdivision 7, during the year preceding the period of part time employment 
132.21 	pursuant to this section shall qualify for full membership in, accrual of service credit from, 
132.22 	and employee contributions to athe teachers retirement fund association for part time 
132.23 	teaching service pursuant to subdivision 4. Notwithstanding the provisions of section 
132.24 	179A.03, subdivision 14, paragraph (a), clauses (5) and (6), teachers who are employed on 
132.25 	a part time basis for purposes of this section and who would therefore be disqualified from 
132.26 	the bargaining unit by one or both of those provisions, shall continue to be in the bargaining 
132.27 	unit during the period of part time employment pursuant to this section for purposes of 
132.28 	compensation, fringe benefits and the grievance procedure.
132.29 		Subd. 8.One district limit. No teacher shall qualify for full membership in, accrual of 
132.30 	service credit from and employee contributions to the Teachers Retirement Association or 
132.31 	athe teachers retirement fund association for part time teaching service pursuant to 
132.32 	subdivision 4 or section 354.66, subdivision 4, in more than one district at the same time. 
132.33 	No teacher shall qualify for full membership in, accrual of service credit from and employee 
132.34 	contributions to athe teachers retirement fund association during part time employment in 
132.35 	a districtIndependent School District No. 625, St. Paul, pursuant to this section in any year 
133.1 	if the teacher also takes a full time or part time teaching position in another Minnesota 
133.2 	school district.
133.3 		Subd. 10.Nonqualified part-time positions. Nothing in this section shall be construed 
133.4 	to limit the authority of a school board to assign a teacher to a part time teaching position 
133.5 	which does not qualify for employee contributions to athe teachers retirement fund 
133.6 	association pursuant to this section.
133.7 		Subd. 11.Substitute teaching; no coverage overlap. Neither subdivision 5 nor 
133.8 	subdivision 8 shall be construed to prohibit a teacher who qualifies for full membership in, 
133.9 	accrual of service credit from and employee contributions to athe teachers retirement fund 
133.10 	association pursuant to this section in any year from being employed as a substitute teacher 
133.11 	by any school district during that year. Notwithstanding the provisions of this chapter or 
133.12 	the bylaws of a retirementthe association, a teacher may not pay retirement contributions 
133.13 	or receive allowable service credit in the fundsassociation for other teaching service rendered 
133.14 	for any part of any year for which the teacher qualifies for full membership in, accrual of 
133.15 	service credit from and employee contributions to the Teachers Retirement Association or 
133.16 	athe teachers retirement fund association pursuant to section 354.66 or this section.
133.17 		Subd. 12.Information supplied by district. Each school district covered by the 
133.18 	provisions of this chapter shallIndependent School District No. 625, St. Paul, must furnish 
133.19 	to the appropriate teachers retirement fund association whatever information and reports 
133.20 	deemed necessary by the board of trustees of the applicable teachers retirement fund 
133.21 	association to administer the provisions of this section.

133.22 	Sec. 11. Minnesota Statutes 2022, section 354A.12, subdivision 5, is amended to read:
133.23 		Subd. 5.Reporting and remittance requirements. (a) EachThe employing unit shall
133.24 	must provide to the appropriate teachers retirement fund association the following member 
133.25 	data regarding all new or returning employees before the employee's first payroll date in a 
133.26 	format approved by the executive secretary or director. Data changes and the dates of those 
133.27 	changes must be reported to the association on an ongoing basis for the payroll cycle in 
133.28 	which they occur. Data on the member includes:
133.29 	(1) legal name, address, date of birth, association member number, employer-assigned 
133.30 	employee number, and Social Security number;
133.31 	(2) association status, including, but not limited to, basic, coordinated, exempt annuitant, 
133.32 	exempt technical college teacher, or exempt independent contractor or consultant;
134.1 	(3) employment status, including, but not limited to, full time, part time, intermittent, 
134.2 	substitute, or part-time mobility;
134.3 	(4) employment position, including, but not limited to, teacher, superintendent, principal, 
134.4 	administrator, or other;
134.5 	(5) employment activity, including, but not limited to, hire, termination, resumption of 
134.6 	employment, disability, or death;
134.7 	(6) leaves of absence; and
134.8 	(7) other information as may be required by the association.
134.9 	(b) EachThe employing unit shallmust provide the following data to the appropriate
134.10 	association for each payroll cycle in a format approved by the executive secretary or director:
134.11 	(1) an association member number;
134.12 	(2) employer-assigned employee number;
134.13 	(3) Social Security number;
134.14 	(4) amount of each salary deduction;
134.15 	(5) amount of salary as defined in section 354A.011, subdivision 24, from which each 
134.16 	deduction was made;
134.17 	(6) reason for payment;
134.18 	(7) service credit;
134.19 	(8) the beginning and ending dates of the payroll period covered and the date of actual 
134.20 	payment;
134.21 	(9) fiscal year of salary earnings;
134.22 	(10) total remittance amount including employee, employer, and employer additional 
134.23 	contributions; and
134.24 	(11) other information as may be required by the association.
134.25 	(c) On or before August 1 each year, eachthe employing unit must report to the 
134.26 	appropriate association giving an itemized summary for the preceding 12 months of the 
134.27 	total amount that was withheld from the salaries of teachers for deductions and all other 
134.28 	information required by the association.
135.1 	(d) AnIf the employing unit that does not comply with the reporting requirements under 
135.2 	this section shall, the employing unit must pay a fine of $5 per calendar day until the 
135.3 	association receives the required member data.
135.4 	(e) AnThe employing unit shallmust remit all amounts that are due to the association 
135.5 	and shallmust furnish for each pay period an itemized statement indicating the total amount 
135.6 	that is due and is transmitted with any other information required by the association. All 
135.7 	amounts due and other employer obligations that are not remitted within 30 days of 
135.8 	notification by the association must be certified by the director or secretary to the 
135.9 	commissioner of management and budget, who shallmust deduct the amount from any state 
135.10 	aid or appropriation amount applicable to the employing unit and shallmust transmit the 
135.11 	deducted amount to the applicable association.

135.12 	Sec. 12. Minnesota Statutes 2022, section 354A.31, subdivision 3a, is amended to read:
135.13 		Subd. 3a.No annuity reduction. (a) The annuity reduction provisions of subdivision 
135.14 	3 do not apply to a person who:
135.15 	(1) retires from the technical college system with at least ten years of service credit in 
135.16 	the system from which the person retires;
135.17 	(2) was employed on a full-time basis immediately preceding retirement as a technical 
135.18 	college faculty member;
135.19 	(3) was not a recipient of an early retirement incentive under section 136F.481;
135.20 	(4) begins drawing an annuity from a first class citythe teachers retirement fund 
135.21 	association; and
135.22 	(5) returns to work on not less than a one-third time basis and not more than a two-thirds 
135.23 	time basis in the technical college system under an agreement in which the person may not 
135.24 	earn a salary of more than $62,000 in a calendar year through the technical college system.
135.25 	(b) Initial participation, the amount of time worked, and the duration of participation 
135.26 	under this section must be mutually agreed upon by the employer and the employee. The 
135.27 	employer may require up to a one-year notice of intent to participate in the program as a 
135.28 	condition of participation under this section. The employer shall determine the time of year 
135.29 	the employee shall work.
135.30 	(c) Notwithstanding any law to the contrary, a person eligible under paragraphs (a) and 
135.31 	(b) may not earn further service credit in a first class citythe teachers retirement fund 
135.32 	association and is not eligible to participate in the individual retirement account plan or the 
136.1 	supplemental retirement plan established in chapter 354B as a result of service under this 
136.2 	section. No employer or employee contribution to any of these plans may be made on behalf 
136.3 	of such a person.

136.4 	Sec. 13. Minnesota Statutes 2022, section 354A.32, subdivision 1a, is amended to read:
136.5 		Subd. 1a.Bounce-back annuity. (a) If a former coordinated member or disabilitant has 
136.6 	selected a joint and survivor annuity option under subdivision 1 after June 30, 1989, the 
136.7 	former member or disabilitant must receive a normal single life annuity if the designated 
136.8 	optional annuity beneficiary dies before the former member or disabilitant. Under this option, 
136.9 	no reduction may be made in the person's annuity to provide for restoration of the normal 
136.10 	single life annuity in the event of the death of the designated optional annuity beneficiary.
136.11 	(b) The annuity adjustment specified in paragraph (a) also applies to joint and survivor 
136.12 	annuity options elected before July 1, 1989. The annuity adjustment under this paragraph 
136.13 	occurs on July 1, 1989, or on the first day of the first month following the death of the 
136.14 	designated optional annuity beneficiary, whichever is later. This paragraph may not be 
136.15 	interpreted as authorizing retroactive payments.
136.16 	(c) Unless otherwise specified in this subdivision, the restoration of the normal single 
136.17 	life annuity under this subdivision takes effect on the first of the month following the date 
136.18 	of death of the designated optional annuity beneficiary or on the first of the month following 
136.19 	one year before the date on which a certified copy of the death record of the designated 
136.20 	optional annuity beneficiary is received in the office of the appropriate teachers retirement 
136.21 	fund association, whichever date is later.

136.22 	Sec. 14. REVISOR INSTRUCTION.
 136.23 	In Minnesota Statutes, chapter 354A, the revisor of statutes must change the term "a 
136.24 	teachers retirement fund association" to "the teachers retirement fund association" wherever 
136.25 	the term appears. The revisor must make any necessary grammatical changes or changes 
136.26 	to sentence structure necessary to preserve the meaning of the text as a result of the changes.

136.27 	Sec. 15. EFFECTIVE DATE.
 136.28 	Sections 1 to 14 are effective the day following final enactment.

137.1 	ARTICLE 12
137.2 	MISCELLANEOUS CHANGES

137.3 	Section 1. Minnesota Statutes 2022, section 353.27, subdivision 4, is amended to read:
137.4 		Subd. 4.Employer reporting requirements; contributions; member status. (a) A 
137.5 	representative authorized by the head of each department shallmust deduct employee 
137.6 	contributions from the salary of each public employee who qualifies for membership in the 
137.7 	general employees retirement plan of the Public Employees Retirement Association or in
137.8 	the public employees police and fire retirement plan under this chapter or, the public 
137.9 	employees defined contribution plan under chapter 353D, or the local government 
137.10 	correctional service retirement plan under chapter 353E at the rate under section 353.27, 
137.11 	353.65, 353D.03, or 353E.03, whichever is applicable, that is in effect on the date the salary 
137.12 	is paid. The employer representative must also remit payment in a manner prescribed by 
137.13 	the executive director for the aggregate amount of the employee contributions and the 
137.14 	required employer contributions to be received by the association within 14 calendar days 
137.15 	after each pay date. If the payment is less than the amount required, the employer must pay 
137.16 	the shortage amount to the association and collect reimbursement of any employee 
137.17 	contribution shortage paid on behalf of a member through subsequent payroll withholdings 
137.18 	from the wages of the employee. Payment of shortages in employee contributions and 
137.19 	associated employer contributions, if applicable, must include interest at the rate specified 
137.20 	in section 353.28, subdivision 5, if not received within 30 days following the date the amount 
137.21 	was initially due under this section.
137.22 	(b) The head of each department or the person's designee shall submit for each pay period 
137.23 	to the association a salary deduction report in the format prescribed by the executive director. 
137.24 	The report must be received by the association within 14 calendar days after each pay date 
137.25 	or the employer may be assessed a fine of $5 per calendar day until the association receives 
137.26 	the required data. Data required as part of salary deduction reporting must include, but are 
137.27 	not limited to:
137.28 	(1) the legal names and Social Security numbers of employees who are members;
137.29 	(2) the amount of each employee's salary deduction;
137.30 	(3) the amount of salary defined in section 353.01, subdivision 10, earned in the pay 
137.31 	period from which each deduction was made, including a breakdown of the portion of the 
137.32 	salary that represents overtime pay that the employee was paid for additional hours worked 
137.33 	beyond the regularly scheduled hours, pay for unused compensatory time, and the salary 
138.1 	amount earned by a reemployed annuitant under section 353.37, subdivision 1, or 353.371, 
138.2 	subdivision 1, or by a disabled member under section 353.33, subdivision 7 or 7a;
138.3 	(4) the beginning and ending dates of the payroll period covered and the date of actual 
138.4 	payment; and
138.5 	(5) adjustments or corrections covering past pay periods as authorized by the executive 
138.6 	director.
138.7 	(c) Employers must furnish the data required for enrollment for each new or reinstated 
138.8 	employee who qualifies for membership in the general employees retirement plan of the 
138.9 	Public Employees Retirement Association or in, the public employees police and fire 
138.10 	retirement plan, the public employees defined contribution plan, or the local government 
138.11 	correctional service retirement plan in the format prescribed by the executive director. The 
138.12 	required enrollment data on new members must be submitted to the association prior to or 
138.13 	concurrent with the submission of the initial employee salary deduction. Also, the employer 
138.14 	shall report to the association all member employment status changes, such as leaves of 
138.15 	absence, terminations, and death, and shall report the effective dates of those changes, on 
138.16 	an ongoing basis for the payroll cycle in which they occur. If an employer fails to comply 
138.17 	with the reporting requirements under this paragraph, the executive director may assess a 
138.18 	fine of $25 for each failure if the association staff has notified the employer of the 
138.19 	noncompliance and attempted to obtain the missing data or form from the employer for a 
138.20 	period of more than three months.
138.21 	(d) The employer shall furnish data, forms, and reports as may be required by the 
138.22 	executive director for proper administration of the retirement system. Before implementing 
138.23 	new or different computerized reporting requirements, the executive director shall give 
138.24 	appropriate advance notice to governmental subdivisions to allow time for system 
138.25 	modifications.
138.26 	(e) Notwithstanding paragraph (a), the executive director may provide for less frequent 
138.27 	reporting and payments for small employers.
138.28 	(f) The executive director may establish reporting procedures and methods as required 
138.29 	to review compliance by employers with the salary and contribution reporting requirements 
138.30 	in this chapter. A review of the payroll records of a participating employer may be conducted 
138.31 	by the association on a periodic basis or as a result of concerns known to exist within a 
138.32 	governmental subdivision. An employer under review must extract requested data and 
138.33 	provide records to the association after receiving reasonable advanced notice. Failure to 
138.34 	provide requested information or materials will result in the employer being liable to the 
139.1 	association for any expenses associated with a field audit, which may include staff salaries, 
139.2 	administrative expenses, and travel expenses.

139.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

139.4 	Sec. 2. Minnesota Statutes 2022, section 353.87, subdivision 1, is amended to read:
139.5 		Subdivision 1.Participation. Except as provided in subdivision 2, A volunteer firefighter, 
139.6 	as defined in section 353.01, subdivision 36, who, on June 30, 1989, was a member of, and 
139.7 	a participant in, the general employees retirement fund or the public employees police and 
139.8 	fire fund and was making contributions to either of those funds based, at least in part, on 
139.9 	compensation for services performed as a volunteer firefighter shall continue as a member 
139.10 	of, and a participant in, the general employees retirement fund or the public employees 
139.11 	police and fire fund and compensation for services performed as a volunteer firefighter must 
139.12 	be considered salary.

139.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

139.14 	Sec. 3. Minnesota Statutes 2022, section 356.215, subdivision 2, is amended to read:
139.15 		Subd. 2.Requirements. (a) It is the policy of the legislature that it is necessary and 
139.16 	appropriate to determine annually the financial status of tax-supported retirement and pension 
139.17 	plans for public employees. To achieve this goal, the actuary retained under section 356.214
139.18 	shall prepare annual actuarial valuations, as of the beginning of each fiscal year, of the 
139.19 	retirement plans enumerated in section 356.214, subdivision 1, paragraph (b), and quadrennial 
139.20 	experience studies of the retirement plans enumerated in section 356.214, subdivision 1, 
139.21 	paragraph (b), clauses (1), (2), and (6).
139.22 	(b) The governing or managing board or administrative officialsexecutive director of 
139.23 	each public pension and retirement plan enumerated in section 356.20, subdivision 2, clauses 
139.24 	(7), (9), and (10), shall have prepared by an approved actuary annual actuarial valuations 
139.25 	of their respective funds as provided in this section. This requirement also applies to any 
139.26 	plan that is the successor to any organization enumerated in section 356.20, subdivision 2, 
139.27 	or to the governing or managing board or chief administrative officialsofficer of any newly 
139.28 	formed retirement fund, plan, or association operating under the control or supervision of 
139.29 	any public employee group, governmental unit, or institution receiving a portion of its 
139.30 	support through legislative appropriations, and any local police or fire relief association to 
139.31 	which section 356.216 applies.

139.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

140.1 	Sec. 4. Minnesota Statutes 2022, section 356.215, subdivision 3, is amended to read:
140.2 		Subd. 3.Reports. (a) The actuarial valuations required annually must be made as of the 
140.3 	beginning of each fiscal year.
140.4 	(b) Two copies of the completed valuationgoverning board or executive director of each 
140.5 	public pension plan required to prepare an annual valuation under subdivision 2 must be 
140.6 	delivereddeliver the annual valuation to the executive director of the Legislative Commission 
140.7 	on Pensions and Retirement, to the commissioner of management and budget, and to the 
140.8 	Legislative Reference Library. The copies of the actuarial valuation must be filed with the 
140.9 	executive director of the Legislative Commission on Pensions and Retirement, the 
140.10 	commissioner of management and budget, and the Legislative Reference Library no later 
140.11 	than the last day of the sixth month occurring after the end of the previous fiscal year. The 
140.12 	annual valuation may be delivered by email.
140.13 	(c) Two copies of a(b) The governing board or executive director of each public pension 
140.14 	plan required to prepare a quadrennial experience study under subdivision 2 must deliver 
140.15 	the quadrennial experience study must be filed withto the executive director of the 
140.16 	Legislative Commission on Pensions and Retirement, with the commissioner of management 
140.17 	and budget, and with the Legislative Reference Library, notno later than the last day of the 
140.18 	12th month occurring after the end of the last fiscal year of the four-year period which
140.19 	covered by the experience study covers. The quadrennial experience study may be delivered 
140.20 	by email.
140.21 	(d) For actuarial valuations and experience studies prepared at the direction of the 
140.22 	Legislative Commission on Pensions and Retirement, one copy of the document must be 
140.23 	delivered to the governing or managing board or administrative officials of the applicable 
140.24 	public pension and retirement fund or plan.

140.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

140.26 	Sec. 5. Minnesota Statutes 2022, section 356A.06, subdivision 5, is amended to read:
140.27 		Subd. 5.Investment business recipient disclosure. The chief administrative officer of 
140.28 	a covered pension plan, with respect to investments made by the plan, and the executive 
140.29 	director of the State Board of Investment, with respect to investments of plan assets made 
140.30 	by the board, shall annually disclose in writing the recipients of investment business placed 
140.31 	with or investment commissions allocated among commercial banks, investment bankers, 
140.32 	brokerage organizations, or other investment managers. The disclosure document must be 
140.33 	prepared within 60 days after the close of the fiscal year of the plan and must be available 
141.1 	for public inspection during regular office hours at the office of the plan. The disclosure 
141.2 	document must also be filed with the executive director of the Legislative Commission on 
141.3 	Pensions and Retirement within 90 days after the close of the fiscal year of the plan. For 
141.4 	the State Board of Investment and a first class city teacher retirement fund association the 
141.5 	St. Paul Teachers Retirement Fund Association, a disclosure document included as part of 
141.6 	a regular annual report of the board or of the first class city teacher retirement fund 
141.7 	association when filed with the executive director of the Legislative Commission on Pensions 
141.8 	and Retirement is considered to have been filed on a timely basis. An officer or member of 
141.9 	the board of trustees of a covered pension plan governed by sections 424A.091 to 424A.096 
141.10 	or the Bloomington Fire Department Relief Association may file the disclosure document 
141.11 	with the executive director of the Legislative Commission on Pensions and Retirement by 
141.12 	email.

141.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

141.14 	Sec. 6. REPEALER.
 141.15 	Minnesota Statutes 2022, sections 353.86; and 353.87, subdivisions 2, 3, and 4, are 
141.16 	repealed effective August 1, 2024.

141.17 	ARTICLE 13
141.18 	ONETIME APPROPRIATIONS AND FUND TRANSFERS

141.19 	Section 1. TRANSFER TO THE IRAP TO TRA TRANSFER ACCOUNT; 
141.20 	APPROPRIATION.
 141.21 	(a) $1,458,000 in fiscal year 2025 is transferred from the general fund to the IRAP to 
141.22 	TRA transfer account established under Minnesota Statutes, section 354B.215, subdivision 
141.23 	11. This is a onetime transfer.
141.24 	(b) Money in the IRAP to TRA transfer account is appropriated to the Board of Trustees 
141.25 	of the Minnesota State Colleges and Universities to reduce the cost of service credit purchases 
141.26 	by eligible persons who transfer coverage from the individual retirement account plan to 
141.27 	the Teachers Retirement Association under Minnesota Statutes, section 354B.215. This is 
141.28 	a onetime appropriation.

142.1 	Sec. 2. TRANSFERS; ONETIME DIRECT STATE AID.
 142.2 	(a) $28,462,200 in fiscal year 2025 is transferred from the general fund to the Teachers 
142.3 	Retirement Association. This transfer must be made no later than October 1, 2024. This is 
142.4 	a onetime transfer.
142.5 	(b) $1,537,800 in fiscal year 2025 is appropriated from the general fund to the 
142.6 	commissioner of management and budget to pay, no later than October 1, 2024, onetime 
142.7 	state aid to the St. Paul Teachers Retirement Fund Association. This is a onetime 
142.8 	appropriation.

APPENDIX 

Repealed Minnesota Statutes: S4643-1 

353.33 TOTAL AND PERMANENT DISABILITY BENEFITS.Subd. 5.Benefits paid under workers' compensation law. 
(a) Disability benefits paid shall be coordinated with any amounts, other than those amounts excluded under paragraph (b), received or receivable under workers' compensation law in either periodic or lump-sum payments from the employer under applicable workers' compensation laws, after deduction of amount of attorney fees, authorized under applicable workers' compensation laws, paid by a disabilitant. If the total of the single life annuity actuarial equivalent disability benefit and the workers' compensation benefit exceeds: (1) the salary the disabled member received as of the date of the disability or (2) the salary currently payable for the same employment position or an employment position substantially similar to the one the person held as of the date of the disability, whichever is greater, the disability benefit must be reduced to that amount which, when added to the workers' compensation benefits, does not exceed the greater of the salaries described in clauses (1) and (2). 

(b) Permanent partial disability payments provided for in section 176.101, subdivision 2a, and retraining payments provided for in section 176.102, subdivision 11, must not be offset from disability payments due under paragraph (a) if the amounts of the permanent partial or retraining payments are reported to the executive director in a manner specified by the executive director. 

353.335 DISABILITANT EARNINGS REPORTS.Subd. 2.Workers' compensation reporting not required. 
Notwithstanding subdivision 1, a recipient of disability benefits from the police and fire plan must not be required to report to the association any workers' compensation received by the recipient. 

353.86 VOLUNTEER AMBULANCE SERVICE PERSONNEL; PARTICIPATION; ELECTION; LIMITATION; AND COMPENSATION.Subdivision 1.Participation. 
Volunteer ambulance service personnel, as defined in section 353.01, subdivision 35, who are or become members of and participants in the general employees retirement fund or the public employees police and fire fund before July 1, 2002, and make contributions to either of those funds based on compensation for service other than volunteer ambulance service may elect to participate in that same fund with respect to compensation received for volunteer ambulance service, provided that the volunteer ambulance service is not credited to another public or private pension plan including the public employees retirement plan established by chapter 353D and provided further that the volunteer ambulance service is rendered for the same governmental unit for which the nonvolunteer ambulance service is rendered. 

Subd. 2.Election. 
Volunteer ambulance service personnel to whom subdivision 1 applies may exercise the election authorized under subdivision 1 within the earlier of the one-year period beginning on July 1, 1989, and extending through June 30, 1990, or the one-year period commencing on the first day of the first month following the start of employment in a position covered by the general employees retirement fund or the public employees police and fire fund. The election must be exercised by filing a written notice on a form prescribed by the executive director of the association. 

Subd. 3.Limitation. 
Volunteer ambulance service personnel to whom subdivision 1 applies who exercise their option in accordance with subdivision 2 and their governmental employers are not required to pay omitted deductions and contributions under section 353.27, subdivision 12, for volunteer ambulance service rendered before July 1, 1989. 

Subd. 4.Compensation. 
Notwithstanding section 353.01, subdivision 10, compensation received for service rendered by volunteer ambulance service personnel to whom subdivision 1 applies who exercise their option in accordance with subdivision 2 shall be considered salary. 

353.87 VOLUNTEER FIREFIGHTERS; PARTICIPATION; LIMITATION; AND REFUND.Subd. 2.Option. 
A volunteer firefighter to whom subdivision 1 applies has the option to terminate membership and future participation in the general employees retirement fund or the public employees police and fire fund upon filing of a written notice of intention to terminate participation. Notice must be given on a form prescribed by the executive director of the association and must be filed in the offices of the association not later than June 30, 1990. 

Subd. 3.Limitation. 
No volunteer firefighter to whom subdivision 1 applies or the governmental employer of the volunteer firefighter is required to make back contributions to the Public Employees Retirement Association for volunteer firefighter services rendered before July 1, 1989, notwithstanding the provisions of section 353.27, subdivision 12. 

Subd. 4.Refund. 
Upon timely filing of a valid notice of termination of participation in accordance with subdivision 2, a volunteer firefighter to whom subdivision 1 applies must be given a refund of all past employee contributions made on account of volunteer firefighter service with five percent interest compounded annually. 

353D.071 FEDERAL COMPLIANCE.Subdivision 1.Definitions. 
(a) For purposes of this section, the following terms have the meanings given them. 

(b) "Designated beneficiary" means the person designated as the beneficiary under section 353D.07, subdivision 5, and who is the designated beneficiary under section 401(a)(9) of the Internal Revenue Code and section 1.401 (a)(9)-1, Q&A-4 of the Treasury regulations. 

(c) "Distribution calendar year" means a calendar year for which a minimum distribution is required. For distributions beginning before the participant's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the participant's required beginning date. For distributions beginning after the participant's death, the first distribution calendar year is the calendar year in which distributions are required to begin under subdivision 2, paragraph (c). The required minimum distribution for the participant's first distribution calendar year shall be made on or before the participant's required beginning date. 

(d) "Participant's account balance" means the account balance as of the last valuation date in the valuation calendar year increased by the amount of any contributions made and allocated to the account balance as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the valuation calendar year after the valuation date. The account balance for the valuation calendar year includes any amounts rolled over or transferred to the plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year. 

(e) "Required beginning date" means the date a participant's retirement benefit must begin under section 356.635, subdivision 1, paragraph (a). 

(f) "Valuation calendar year" means the calendar year immediately preceding the distribution calendar year. 

Subd. 2.Required minimum distributions. 
(a) The provisions of this subdivision apply for purposes of determining required minimum distributions for calendar years and must take precedence over any inconsistent provisions of the plan. All distributions required under this section must be determined and made in accordance with the treasury regulations under section 401(a)(9) of the Internal Revenue Code, including regulations providing special rules for governmental plans, as defined under section 414(d) of the Internal Revenue Code, that comply with a reasonable good faith interpretation of the minimum distribution requirements. 

(b) The participant's entire interest must be distributed or begin to be distributed no later than the participant's required beginning date. 

(c) If the participant dies before the required minimum distribution is made or begins, the participant's account must be distributed in a lump sum no later than as follows: 

(1) if the participant's surviving spouse is the participant's sole designated beneficiary, the distribution must be made by December 31 of the calendar year immediately following the calendar year in which the participant died, or by December 31 of the calendar year in which the participant would have attained the participant's required beginning date, whichever is later; 

(2) if the participant's surviving spouse is not the participant's sole beneficiary, or if there is no designated beneficiary as of September 30 of the year following the year of the participant's death, the participant's account must be distributed by December 31 of the calendar year containing the fifth anniversary of the participant's death as directed under section 353D.07, subdivision 5; or 

(3) if the participant's surviving spouse is the participant's sole designated beneficiary and the surviving spouse dies after the participant, but before the account balance is distributed to the surviving spouse, paragraph (c), clause (2), must apply as if the surviving spouse were the participant. 

(d) For purposes of paragraph (c), unless clause (3) applies, distributions are considered to be made on the participant's required beginning date. If paragraph (c), clause (3), applies, distributions are considered to begin on the date distributions must be made to the surviving spouse under paragraph (c), clause (1). 

353G.01 DEFINITIONS.Subd. 7a.Lump-sum account. 
"Lump-sum account" means that portion of the retirement fund that contains the assets applicable to the lump-sum division. 

Subd. 8a.Monthly benefit account. 
"Monthly benefit account" means that portion of the fund that contains the assets applicable to the monthly benefit division. 

Subd. 10.Plan. 
"Plan" means the retirement plan established by this chapter. 

353G.02 PLAN AND FUND CREATION.Subd. 6.Initial administrative expenses of the monthly benefit division; allocation of reimbursement. 
 The administration expenses incurred by the Public Employees Retirement Association in the establishment of the monthly benefit division of the statewide volunteer firefighter plan, including any computer programming expenses and any actuarial consultant expenses, are payable from the assets of the initial monthly benefit volunteer firefighter relief association that elects to transfer its administration to the statewide volunteer firefighter plan, following the transfer of assets. 

353G.08 PLAN FUNDING; DISBURSEMENTS.Subd. 3.Authorized account disbursements. 
 The assets of a lump-sum retirement account or of a monthly benefit retirement account of the retirement fund may only be disbursed for: 

(1) the administrative expenses of the plan; 

(2) the investment expenses of the retirement fund; 

(3) the service pensions payable under section 353G.10, 353G.11, 353G.14, or 353G.18; 

(4) the survivor benefits payable under section 353G.12; 

(5) the disability benefit coverage insurance premiums under section 353G.115; and 

(6) a transfer of assets under section 353G.17. 

353G.11 LUMP-SUM DIVISION SERVICE PENSION LEVELS.Subdivision 1.Service pension levels; lump-sum division. 
Except as provided in subdivision 1a, the lump-sum division of the plan provides the following levels of service pension amounts per full year of service credit to be selected at the election of coverage: 

(1) a minimum service pension level of $500 per year; 

(2) a maximum service pension level equal to the maximum lump-sum service pension amount permitted under section 424A.02, subdivision 3, payable for each year of service; and 

(3) service pension levels between the minimum level and the maximum level in $100 increments. 

Subd. 1a.Continuation of prior lump-sum service pension levels. 
(a) If a municipality or independent nonprofit firefighting corporation elected to be covered by the lump-sum division of the plan before January 1, 2010, and selected the $750 per year of service credit service pension amount effective for January 1, 2010, that level continues for the volunteer firefighters of that municipality or independent nonprofit firefighting corporation until a different service pension amount is selected under subdivision 2 after January 1, 2010. 

(b) If a municipality or independent nonprofit firefighting corporation elected to be covered by the plan before January 1, 2015, and selected a service pension level under subdivision 1, other than a service credit service pension amount under subdivision 1, that level continues for the volunteer firefighters of the municipality or independent nonprofit firefighting corporation until a different service pension amount is selected under subdivision 2 after January 1, 2014. 

Subd. 3.Supplemental benefit. 
The lump-sum retirement account of the plan also shall pay a supplemental benefit as provided for in section 424A.10. 

Subd. 4.Ancillary benefits. 
Except as provided under section 353G.115 or 353G.12, no disability, death, funeral, or other ancillary benefit beyond a service pension or a survivor benefit is payable from the lump-sum retirement account of the plan. 

353G.112 MONTHLY BENEFIT DIVISION SERVICE PENSION LEVELS.
The service pension amount for the firefighters of a fire department covered by the monthly benefit division of the plan is the amount specified in the retirement benefit plan document applicable to the fire department. 

353G.121 MONTHLY BENEFIT DIVISION; POST-TRANSFER BENEFIT PLAN DOCUMENT MODIFICATIONS.
(a) The fire chief of a fire department that has an active membership who are covered by the monthly benefit division of the plan may initiate the process of modifying the retirement benefit plan document under this section. 

(b) The modification procedure is initiated when the applicable fire chief files with the executive director of the Public Employees Retirement Association a written summary of the desired benefit plan document modification, the proposed benefit plan document modification language, a written request for the preparation of an actuarial cost estimate for the proposed benefit plan document modification, and payment of the estimated cost of the actuarial cost estimate. 

(c) Upon receipt of the modification request and related documents, the executive director shall review the language of the proposed benefit plan document modification and, if a clarification is needed in the submitted language, shall inform the fire chief of the necessary clarification. Once the proposed benefit plan document modification language has been clarified by the fire chief and resubmitted to the executive director, the executive director shall arrange for the approved actuary retained by the Public Employees Retirement Association to prepare a benefit plan document modification cost estimate under the applicable provisions of section 356.215 and of the standards for actuarial work adopted by the Legislative Commission on Pensions and Retirement. Upon completion of the benefit plan document modification cost estimate, the executive director shall forward the estimate to the fire chief who requested it and to the chief financial officer of the municipality or entity with which the fire department is primarily associated. 

(d) The fire chief, upon receipt of the cost estimate, shall circulate the cost estimate with the active firefighters in the fire department and shall take reasonable steps to provide the estimate results to any affected retired members of the fire department and their beneficiaries. The chief financial officer of the municipality or entity associated with the fire department shall present the proposed modification language and the cost estimate to the governing body of the municipality or entity for its consideration at a public hearing held for that purpose. 

(e) If the governing body of the municipality or entity approves the modification language, the chief administrative officer of the municipality or entity shall notify the executive director of the Public Employees Retirement Association of that approval. The benefit plan document modification is effective on the January 1 next following the date of filing the approval with the Public Employees Retirement Association. 

356.635 INTERNAL REVENUE CODE COMPLIANCE.Subd. 3.Direct rollovers. 
A distributee may elect, at the time and in the manner prescribed by the plan administrator, to have all or any portion of an eligible rollover distribution paid directly to an eligible retirement plan as specified by the distributee. 

Subd. 4.Eligible rollover distribution. 
An "eligible rollover distribution" is any distribution of all or any portion of the balance to the credit of the distributee. 

Subd. 5.Ineligible amounts. 
An eligible rollover distribution does not include: 

(1) a distribution that is one of a series of substantially equal periodic payments, receivable annually or more frequently, that is made for the life or life expectancy of the distributee, the joint lives or joint life expectancies of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more; 

(2) a distribution that is required under section 401(a)(9) of the Internal Revenue Code; or 

(3) any other exception required by law or the Internal Revenue Code. 

Subd. 6.Eligible retirement plan. 
(a) An "eligible retirement plan" is: 

(1) an individual retirement account under section 408(a) or 408A of the federal Internal Revenue Code; 

(2) an individual retirement annuity plan under section 408(b) of the federal Internal Revenue Code; 

(3) an annuity plan under section 403(a) of the federal Internal Revenue Code; 

(4) a qualified trust plan under section 401(a) of the federal Internal Revenue Code that accepts the distributee's eligible rollover distribution; 

(5) an annuity contract under section 403(b) of the federal Internal Revenue Code; 

(6) an eligible deferred compensation plan under section 457(b) of the federal Internal Revenue Code, which is maintained by a state or local government and which agrees to separately account for the amounts transferred into the plan; or 

(7) in the case of an eligible rollover distribution to a nonspousal beneficiary, an individual account or annuity treated as an inherited individual retirement account under section 402(c)(11) of the federal Internal Revenue Code. 

(b) For distributions of after-tax contributions which are not includable in gross income, the after-tax portion may be transferred only to an individual retirement account or annuity described in section 408(a) or (b) of the federal Internal Revenue Code, to a Roth individual retirement account described in section 408A of the federal Internal Revenue Code, or to a qualified plan described in either section 401(a) of the federal Internal Revenue Code or to an annuity contract described in section 403(b) of the federal Internal Revenue Code, that agrees to separately account for the amounts transferred, including separately accounting for the portion of the distribution which is includable in gross income and the portion of the distribution which is not includable. 

Subd. 7.Distributee. 
A "distributee" is: 

(1) an employee or a former employee; 

(2) the surviving spouse of an employee or former employee; 

(3) the former spouse of the employee or former employee who is the alternate payee under a qualified domestic relations order as defined in section 414(p) of the federal Internal Revenue Code, or who is a recipient of a court-ordered equitable distribution of marital property, as provided in section 518.58; or 

(4) a nonspousal beneficiary of an employee or former employee who qualifies for a distribution under the plan and is a designated beneficiary as defined in section 401(a)(9)(E) of the federal Internal Revenue Code. 

Subd. 8.Forfeitures. 
For defined benefit plans, unless otherwise permitted by section 401(a)(8) of the Internal Revenue Code, forfeitures may not be applied to increase the benefits that any employee would otherwise receive under the plan. 

Subd. 9a.Definitions. 
(a) The following definitions apply for purposes of this subdivision and subdivisions 10 to 12. 

(b) "Annual addition" means the sum for the limitation year of all pretax and after-tax contributions made by the member or the member's employer and credited to an account in the name of the member in any defined contribution plan maintained by the employer. 

(c) "Compensation" means the compensation actually paid or made available to a member for any limitation year, including all items of remuneration described in Code of Federal Regulations, title 26, section 1.415(c)-2(b), and excluding all items of remuneration described in Code of Federal Regulations, title 26, section 1.415(c)-2(c). Compensation for pension plan purposes for any limitation year shall not exceed the applicable federal compensation limit described in section 356.611, subdivision 2. 

(d) "Limitation year" means the calendar year or fiscal year, whichever is applicable to the particular pension plan. 

(e) "Maximum permissible benefit" means an annual benefit of $160,000, automatically adjusted under section 415(d) of the Internal Revenue Code for each limitation year ending after December 31, 2001, payable in the form of a single life annuity. The new limitation shall apply to limitation years ending with or within the calendar year of the date of the adjustment, but a member's benefits shall not reflect the adjusted limit prior to January 1 of that calendar year. The maximum permissible benefit amount shall be further adjusted as follows: 

(1) if the member has less than ten years of participation, the maximum permissible benefit shall be multiplied by a fraction, the numerator of which is the number of years, or part thereof, but not less than one year, of participation in the plan, and the denominator of which is ten; 

(2) if the annual benefit begins before the member has attained age 62, the determination as to whether the maximum permissible benefit limit has been satisfied shall be made, in accordance with regulations prescribed by the United States secretary of the treasury, by reducing the limit so that the limit, as so reduced, equals an annual benefit, beginning when the annual benefit actually begins, which is equivalent to a $160,000, as adjusted, annual benefit beginning at age 62; and 

(3) if the annual benefit begins after the member has attained age 65, the determination as to whether the maximum permissible benefit limit has been satisfied shall be made, in accordance with regulations prescribed by the United States secretary of the treasury, by increasing the limit so that the limit, as so increased, equals an annual benefit, beginning when the annual benefit actually begins, which is equivalent to a $160,000, as adjusted, annual benefit beginning at age 65. 

Subd. 10.Annual benefit limitations; defined benefit plans. 
(a) The annual benefit payable to a member shall not exceed the maximum permissible benefit. If the benefit the member would otherwise receive for a limitation year would result in the payment of an annual benefit in excess of the maximum permissible benefit, the benefit shall be reduced to the extent necessary so the benefit does not exceed the maximum permissible benefit. 

(b) For purposes of applying the limitation in paragraph (a), an annual benefit that is payable in any form other than a single life annuity shall be adjusted to an actuarially equivalent single life annuity that equals, if the annuity starting date is in a plan year beginning after 2005, the annual amount of the single life annuity commencing at the same annuity starting date that has the same actuarial present value as the member's form of benefit, using whichever of the following produces the greatest annual amount: 

(1) the interest rate and the mortality table or other tabular factor specified in the plan for adjusting benefits in the same form; 

(2) a 5.5 percent interest rate assumption and the applicable mortality table; or 

(3) the applicable interest rate under section 417(e)(3) of the Internal Revenue Code and the applicable mortality table, divided by 1.05. 

(c) If a member participated in more than one pension plan in which the employer participates, the benefits under each plan must be reduced proportionately to satisfy the limitation in paragraph (a). 

Subd. 11.Annual addition limitation; defined contribution plans. 
The annual additions by or on behalf of a member to a defined contribution plan for any limitation year shall not exceed the lesser of (1) 100 percent of the member's compensation for the limitation year or (2) the dollar limit in effect for the limitation year under section 415(c)(1)(A) of the Internal Revenue Code, as adjusted by the United States secretary of the treasury under section 415(d)(1)(C) of the Internal Revenue Code. 

Subd. 12.Incorporation by reference. 
Any requirements of section 415(b) and (c) of the Internal Revenue Code and related regulations and agency guidance not addressed by subdivisions 10 and 11 shall be considered incorporated by reference, including provisions applicable to qualified police and firefighters and to survivor and disability benefits. Subdivisions 10 to 12 shall be interpreted in a manner that is consistent with the requirements of section 415(b) and (c) of the Internal Revenue Code and the related regulations. 

Subd. 13.Correction of errors. 
The executive director of each plan may correct an operational, demographic, employer eligibility, or plan document error as the executive director deems necessary or appropriate to preserve and protect the plan's tax qualification under section 401(a) of the Internal Revenue Code, including as provided in the Internal Revenue Service's Employee Plans Compliance Resolution System (EPCRS) or any successor thereto. To the extent deemed necessary by the executive director to implement correction, the executive director may: 

(1) make distributions; 

(2) transfer assets; or 

(3) recover an overpayment by reducing future benefit payments or designating appropriate revenue or source of funding that will restore to the plan the amount of the overpayment. 

424A.01 MEMBERSHIP IN A VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION.Subd. 5a.Volunteer emergency medical personnel. 
Volunteer emergency medical personnel are eligible to be members of the applicable volunteer firefighters relief association and to qualify for service pension or other benefit coverage of the relief association on the same basis as fire department personnel who perform or supervise fire suppression or fire prevention duties if: 

(1) the fire department employs or otherwise uses the services of persons solely as volunteer emergency medical personnel to perform emergency medical response duties or supervise emergency medical response activities; 

(2) the bylaws of the relief association authorize the eligibility; and 

(3) the eligibility is approved by: 

(i) the municipality, if the fire department is a municipal department; 

(ii) the joint powers board, if the fire department is a joint powers entity; or 

(iii) the contracting municipality or municipalities, if the fire department is an independent nonprofit firefighting corporation.