1.1 	A bill for an act
1.2 	relating to retirement; Minnesota State Retirement System, making administrative 
1.3 	changes, increasing the formula multiplier and the postretirement adjustment for 
1.4 	the general state employees retirement plan, and increasing the postretirement 
1.5 	adjustment for the legislators and unclassified retirement plans; Public Employees 
1.6 	Retirement Association, making administrative and conforming changes, increasing 
1.7 	the cap on the postretirement adjustment for the general employees retirement 
1.8 	plan, expanding the privatization requirements and revising the method for 
1.9 	calculating withdrawal liability; implementing the recommendations of the MSRS 
1.10 	correctional plan eligibility work group, the amortization work group, and the 
1.11 	State Auditor's fire relief association working group; increasing the employer 
1.12 	contribution maximum for the higher education supplemental retirement plan; 
1.13 	increasing the maximum lump-sum benefit level for defined benefit firefighter 
1.14 	relief associations; Minnesota Secure Choice Retirement Program, making 
1.15 	administrative and policy changes, authorizing the commissioner of employment 
1.16 	and economic development to disclose information to the executive director, and 
1.17 	adding penalties for noncompliance; modifying the pension fund executive directors' 
1.18 	authority to correct errors and modifying the annual reporting requirement; 
1.19 	repealing the investment business recipient disclosure reporting requirement for 
1.20 	firefighter relief associations; establishing a work group on pension plans for 
1.21 	probation officers and 911 telecommunicators; making technical changes, 
1.22 	clarifications, and corrections to the statutes governing the Legislative Commission 
1.23 	on Pensions and Retirement, the statewide volunteer firefighter plan, IRAP to TRA 
1.24 	transfers, fire state aid and police and firefighter retirement supplemental state aid, 
1.25 	and the public employees defined contribution plan; modifying practices for 
1.26 	reporting and repealing certain reporting requirements for the State Board of 
1.27 	Investment; eliminating obsolete provisions;amending Minnesota Statutes 2024, 
1.28 	sections 3.85, subdivisions 2, 3, 10; 11A.07, subdivisions 4, 4b; 124E.12, 
1.29 	subdivisions 4, 6; 181.101; 187.03, subdivisions 5, 7, 7a, by adding a subdivision; 
1.30 	187.05, subdivisions 4, 6, by adding a subdivision; 187.07, subdivisions 1, 2, 3, 
1.31 	6; 187.08, subdivisions 3, 7; 187.11; 268.19, subdivision 1; 352.01, by adding a 
1.32 	subdivision; 352.029, subdivision 3; 352.03, subdivision 5; 352.115, subdivision 
1.33 	3; 352.22, subdivisions 2b, 3; 352.90; 352.93, subdivision 1; 352.955, subdivision 
1.34 	1; 353.01, subdivisions 2a, 2b, 2d; 353.028, subdivisions 2, 3; 353.27, subdivision 
1.35 	3a; 353.34, subdivision 5; 353D.01, subdivision 2; 353D.02, subdivisions 1, 2, 3, 
1.36 	4, 5, 6, 7; 353E.06, subdivision 1; 353F.01; 353F.02, subdivisions 3, 4b, 5a, 6, by 
1.37 	adding subdivisions; 353F.025; 353F.03; 353F.04; 353F.05; 353F.051, subdivisions 
1.38 	1, 2; 353F.052; 353F.057; 353F.06; 353F.07; 353F.08; 353F.09; 353G.08, 
2.1 	subdivision 1a; 353G.11, subdivisions 2, 2a, by adding a subdivision; 353G.17, 
2.2 	subdivisions 4, 5; 353G.19, subdivisions 1, 2, 3, 4, 5; 354B.215, subdivisions 3, 
2.3 	4; 356.215, subdivisions 1, 4, 8, 11, 17; 356.24, subdivision 1; 356.415, 
2.4 	subdivisions 1, 1b; 356.633, subdivisions 1, 2, by adding a subdivision; 356.636, 
2.5 	subdivisions 2, 3; 423A.022, subdivisions 2, 3; 424A.014, subdivisions 2, 5; 
2.6 	424A.015, subdivision 4; 424A.016, subdivisions 2, 6; 424A.02, subdivision 3; 
2.7 	424A.05, subdivision 3; 424A.06, subdivision 2; 424A.08; 424A.092, subdivisions 
2.8 	2, 3, 4; 424A.093, subdivision 5; 424B.22, subdivisions 1, 2, 3, by adding a 
2.9 	subdivision; 477B.02, subdivisions 3, 8; 477B.03, subdivisions 5, 7; 477B.04, 
2.10 	subdivisions 3, 4; proposing coding for new law in Minnesota Statutes, chapters 
2.11 	187; 352; 356; repealing Minnesota Statutes 2024, sections 11A.27; 352.91, 
2.12 	subdivisions 1, 2, 2a, 3c, 3d, 3e, 3f, 3g, 3h, 3i, 3j, 4a, 4b, 4c, 6; 353F.02, subdivision 
2.13 	4a; 356.635, subdivision 9; 356A.06, subdivision 5; 424A.015, subdivision 5.
2.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.15 	ARTICLE 1
2.16 	MINNESOTA STATE RETIREMENT SYSTEM

2.17 	Section 1. Minnesota Statutes 2024, section 352.115, subdivision 3, is amended to read:
2.18 		Subd. 3.Retirement annuity formula. (a) This paragraph, in conjunction with section 
2.19 	352.116, subdivision 1, applies to a person who became a covered employee or a member 
2.20 	of a pension fund listed in section 356.30, subdivision 3, before July 1, 1989, unless 
2.21 	paragraph (b), in conjunction with section 352.116, subdivision 1a, produces a higher annuity 
2.22 	amount, in which case paragraph (b) applies.
2.23 	(1) If the employee does not have allowable service after June 30, 2025, the employee's 
2.24 	retirement annuity is equal to the employee's average salary, as defined in section 352.01, 
2.25 	subdivision 14a, multiplied by 1.2 percent per year of allowable service for the first ten 
2.26 	years and 1.7 percent for each later year of allowable service and pro rata for completed 
2.27 	months less than a full year determines the amount of the retirement annuity to which the 
2.28 	employee is entitled.
2.29 	(2) If the employee has allowable service after June 30, 2025, the employee's retirement 
2.30 	annuity is equal to the employee's average salary multiplied by 1.2 percent per year of 
2.31 	allowable service for the first ten years and 1.7 percent for each later year of allowable 
2.32 	service through June 30, 2025, and 1.9 percent for each year of allowable service after June 
2.33 	30, 2025, and pro rata for completed months less than a full year.
2.34 	(b) This paragraph applies to a person who has become at least 55 years old and first 
2.35 	became a covered employee after June 30, 1989, and to any other covered employee who 
2.36 	has become at least 55 years old and whose annuity amount, when calculated under this 
2.37 	paragraph and in conjunction with section 352.116, subdivision 1a, is higher than it is when 
2.38 	calculated under paragraph (a), in conjunction with section 352.116, subdivision 1.
3.1 	(1) If the employee does not have allowable service after June 30, 2025, the employee's 
3.2 	retirement annuity is equal to the employee's average salary, as defined in section 352.01, 
3.3 	subdivision 14a, multiplied by 1.7 percent for each year of allowable service and pro rata 
3.4 	for completed months less than a full year determines the amount of the retirement annuity 
3.5 	to which the employee is entitled.
3.6 	(2) If the employee has allowable service after June 30, 2025, the employee's retirement 
3.7 	annuity is equal to the employee's average salary multiplied by 1.7 percent for each year of 
3.8 	allowable service through June 30, 2025, and 1.9 percent for each year of allowable service 
3.9 	after June 30, 2025, and pro rata for completed months less than a full year.

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

3.11 	Sec. 2. Minnesota Statutes 2024, section 352.22, subdivision 2b, is amended to read:
3.12 		Subd. 2b.Refund repayment. Any person who has received a refund from the state 
3.13 	employees retirement plan, or the correctional state employees retirement plan and who is 
3.14 	a member of any of the retirement plans specified in section 356.311, paragraph (b), may 
3.15 	repay the refund with interest to the state employees retirement plan from which the refund 
3.16 	was paid. If a refund is repaid to the plan and more than one refund has been received from 
3.17 	the plan, all refunds must be repaid. Repayment must be made as provided in section 352.23, 
3.18 	and under terms and conditions consistent with that section as agreed upon with the director.

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

3.20 	Sec. 3. Minnesota Statutes 2024, section 352.22, subdivision 3, is amended to read:
3.21 		Subd. 3.Deferred annuity. (a) After separation from state service, an employee who 
3.22 	has at least three years of allowable service if employed before July 1, 2010, or who has at 
3.23 	least five years of allowable service if employed after June 30, 2010, when termination 
3.24 	occurs may elect to leave the employee's accumulated contributions in the retirement fund 
3.25 	and thereby be entitled to a deferred retirement annuity. if the employee:
3.26 	(1) is a member of the state employees retirement plan and satisfies the allowable service 
3.27 	requirement under section 352.115, subdivision 1, applicable to the employee; or
3.28 	(2) is a member of the correctional state employees retirement plan and satisfies the 
3.29 	allowable service requirement under section 352.925 applicable to the employee.
3.30 	(b) The annuity must be computed under the law in effect when the employee separates 
3.31 	from state service terminated, on the basis of the allowable service credited to the person 
3.32 	before the termination ofseparation from state service.
4.1 	(b)(c) An employee on layoff or on leave of absence without pay, except a leave of 
4.2 	absence for health reasons, and who does not return to state service must have an annuity, 
4.3 	deferred annuity, or other benefit to which the employee may become entitled computed 
4.4 	under the law in effect on the employee's last working day.
4.5 	(c)(d) No application for a deferred annuity may be made more than 60 days before the 
4.6 	time the former employee reaches the required age for entitlement to the payment of the 
4.7 	annuity. The deferred annuity begins to accrue no earlier than 60 days before the date the 
4.8 	application is filed in the office of the system, but not (1) before the date on which the 
4.9 	employee reaches the required age for entitlement to the annuity nor (2) before the day 
4.10 	following the termination of state service in a position which is not covered by the retirement 
4.11 	system.
4.12 	(d)(e) Application for the accumulated contributions left on deposit with the fund may 
4.13 	be made at any time following the date of the termination of service.
4.14 	(e)(f) Deferred annuities must be augmented as provided in subdivision 3a.

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

4.16 	Sec. 4. Minnesota Statutes 2024, section 356.415, subdivision 1, is amended to read:
4.17 		Subdivision 1.Annual postretirement adjustments; Minnesota State Retirement 
4.18 	System general state employees retirement plan, legislators retirement plan, and 
4.19 	unclassified state employees retirement program. (a) Recipients of a retirement annuity, 
4.20 	disability benefit, or survivor benefit from the general state employees retirement plan, the 
4.21 	legislators retirement plan, or the unclassified state employees retirement program are 
4.22 	entitled to an annual postretirement adjustment, effective as of each January 1, as follows:
4.23 	(1) effective January 1, 2019, through December 31, 2023, a postretirement increase of 
4.24 	one percent must be applied each year to the amount of the monthly annuity or benefit of 
4.25 	each annuitant or benefit recipient who has been receiving an annuity or a benefit for at 
4.26 	least 12 full months as of the June 30 of the calendar year immediately before the adjustment;
4.27 	(2) effective January 1, 2019, through December 31, 2023, for each annuitant or benefit 
4.28 	recipient who has been receiving an annuity or a benefit for at least one full month, but less 
4.29 	than 12 full months as of the June 30 of the calendar year immediately before the adjustment, 
4.30 	a postretirement increase of 1/12 of one percent for each month that the person has been 
4.31 	receiving an annuity or benefit must be applied to the amount of the monthly annuity or 
4.32 	benefit of the annuitant or benefit recipient;
5.1 	(3) (1) effective January 1, 2024 2026, and thereafter, a postretirement increase of 1.5
5.2 	1.75 percent must be applied each year to the amount of the monthly annuity or benefit of 
5.3 	each annuitant or benefit recipient who has been receiving an annuity or a benefit for at 
5.4 	least 12 full months as of the June 30 of the calendar year immediately before the adjustment; 
5.5 	and
5.6 	(4) (2) effective January 1, 2024 2026, and thereafter, for each annuitant or benefit 
5.7 	recipient who has been receiving an annuity or a benefit for at least one full month, but less 
5.8 	than 12 full months as of the June 30 of the calendar year immediately before the adjustment, 
5.9 	an annual postretirement increase of 1/12 of 1.5 1.75 percent for each month that the person 
5.10 	has been receiving an annuity or benefit must be applied to the amount of the monthly 
5.11 	annuity or benefit of the annuitant or benefit recipient.
5.12 	(b) An increase in annuity or benefit payments under this subdivision must be made 
5.13 	automatically unless written notice is filed by the annuitant or benefit recipient with the 
5.14 	executive director of the covered Minnesota State Retirement plan System requesting that 
5.15 	the increase not be made.

5.16 	EFFECTIVE DATE. This section is effective for postretirement adjustments beginning 
5.17 	on or after January 1, 2026.

5.18 	ARTICLE 2
5.19 	PUBLIC EMPLOYEES RETIREMENT ASSOCIATION

5.20 	Section 1. Minnesota Statutes 2024, section 353.01, subdivision 2a, is amended to read:
5.21 		Subd. 2a.Included employees; mandatory membership. (a) Any public employees
5.22 	employee whose salary from one governmental subdivision exceeds is expected to exceed
5.23 	$425 in any month and who are is not specifically excluded under subdivision 2b or have
5.24 	has not been provided an option to participate under subdivision 2d, whether individually 
5.25 	or by action of the governmental subdivision, must participate beginning on the employee's 
5.26 	first day of employment as members a member of the association with retirement coverage 
5.27 	by the general employees retirement plan under this chapter, the public employees police 
5.28 	and fire plan under this chapter, or the local government correctional employees retirement 
5.29 	plan under chapter 353E, whichever applies. For any employee whose salary is not expected 
5.30 	to exceed $425 in any month, membership commences as a condition of employment on 
5.31 	the first day of employment or on the first day that the employee's salary exceeds $425 and 
5.32 	the other eligibility criteria are met, whichever is later. Public employees include but are 
5.33 	not limited to:
6.1 	(1) persons whose salary meets the threshold in this paragraph from employment in one 
6.2 	or more positions within one governmental subdivision;
6.3 	(2) elected county sheriffs;
6.4 	(3) persons who are appointed, employed, or contracted to perform governmental 
6.5 	functions that by law or local ordinance are required of a public officer, including, but not 
6.6 	limited to:
6.7 	(i) town and city clerk or treasurer;
6.8 	(ii) county auditor, treasurer, or recorder;
6.9 	(iii) city manager as defined in section 353.028 who does not exercise the option provided 
6.10 	under subdivision 2d; or
6.11 	(iv) emergency management director, as provided under section 12.25;
6.12 	(4) physicians under section 353D.01, subdivision 2, who do not elect public employees 
6.13 	defined contribution plan coverage under section 353D.02, subdivision 2;
6.14 	(5) full-time employees of the Dakota County Agricultural Society;
6.15 	(6) employees of the Red Wing Port Authority who were first employed by the Red 
6.16 	Wing Port Authority before May 1, 2011, and who are not excluded employees under 
6.17 	subdivision 2b;
6.18 	(7) employees of the Seaway Port Authority of Duluth who are not excluded employees 
6.19 	under subdivision 2b;
6.20 	(8) employees of the Stevens County Housing and Redevelopment Authority who were 
6.21 	first employed by the Stevens County Housing and Redevelopment Authority before May 
6.22 	1, 2014, and who are not excluded employees under subdivision 2b;
6.23 	(9) employees of the Minnesota River Area Agency on Aging who were first employed 
6.24 	by a Regional Development Commission before January 1, 2016, and who are not excluded 
6.25 	employees under subdivision 2b; and
6.26 	(10) employees of the Public Employees Retirement Association.
6.27 	(b) A public employee or elected official who was a member of the association on June 
6.28 	30, 2002, based on employment that qualified for membership coverage by the public 
6.29 	employees retirement plan or the public employees police and fire plan under this chapter, 
6.30 	or the local government correctional employees retirement plan under chapter 353E as of 
6.31 	June 30, 2002, retains that membership for the duration of the person's employment in that 
7.1 	position or incumbency in elected office. Except as provided in subdivision 28, the person 
7.2 	shall participate as a member until the employee or elected official terminates public 
7.3 	employment under subdivision 11a or terminates membership under subdivision 11b.
7.4 	(c) If the salary of an included public employee is less than $425 in any subsequent 
7.5 	month, the member retains membership eligibility.
7.6 	(d) For the purpose of participation in the general employees retirement plan, public 
7.7 	employees include employees who were members of the former Minneapolis Employees 
7.8 	Retirement Fund on June 29, 2010.

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

7.10 	Sec. 2. Minnesota Statutes 2024, section 353.01, subdivision 2b, is amended to read:
7.11 		Subd. 2b.Excluded employees. (a) The following public employees are not eligible to 
7.12 	participate as members of the association with retirement coverage by the general employees 
7.13 	retirement plan, the local government correctional employees retirement plan under chapter 
7.14 	353E, or the public employees police and fire plan:
7.15 	(1) persons whose salary from one governmental subdivision never exceeds or is never 
7.16 	expected to exceed $425 in a month;
7.17 	(2) public officers who are elected to a governing body, city mayors, or persons who 
7.18 	are appointed to fill a vacancy in an elected office of a governing body, whose term of office 
7.19 	commences on or after July 1, 2002, for the service to be rendered in that elected position;
7.20 	(3) election judges and persons employed solely to administer elections;
7.21 	(4) patient and inmate personnel who perform services for a governmental subdivision;
7.22 	(5) except as otherwise specified in subdivision 12a, employees who are employed solely 
7.23 	in a temporary position as defined under subdivision 12a, and employees who resign from 
7.24 	a nontemporary position and accept a temporary position within 30 days of that resignation 
7.25 	in the same governmental subdivision;
7.26 	(6) employees who are employed by reason of work emergency caused by fire, flood, 
7.27 	storm, or similar disaster, but if the person becomes a probationary or provisional employee 
7.28 	within the same pay period, other than on a temporary basis, the person is a "public 
7.29 	employee" retroactively to the beginning of the pay period;
7.30 	(7) employees who by virtue of their employment in one governmental subdivision are 
7.31 	required by law to be a member of and to contribute to any of the plans or funds administered 
7.32 	by the Minnesota State Retirement System, the Teachers Retirement Association, or the St. 
8.1 	Paul Teachers Retirement Fund Association, but this exclusion must not be construed to 
8.2 	prevent a person from being a member of and contributing to the Public Employees 
8.3 	Retirement Association and also belonging to and contributing to another public pension 
8.4 	plan or fund for other service occurring during the same period of time, and a person who 
8.5 	meets the definition of "public employee" in subdivision 2 by virtue of other service occurring 
8.6 	during the same period of time becomes a member of the association unless contributions 
8.7 	are made to another public retirement plan on the salary based on the other service or to the 
8.8 	Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
8.9 	(8) persons who are members of a religious order and are excluded from coverage under 
8.10 	the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance 
8.11 	of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if 
8.12 	no irrevocable election of coverage has been made under section 3121(r) of the Internal 
8.13 	Revenue Code of 1954, as amended;
8.14 	(9) persons who are:
8.15 	(i) employed by a governmental subdivision who have not reached the age of 23 and 
8.16 	who are enrolled on a full-time basis to attend or are attending classes on a full-time basis 
8.17 	at an accredited school, college, or university in an undergraduate, graduate, or 
8.18 	professional-technical program, or at a public or charter high school;
8.19 	(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist 
8.20 	interns and are serving in a degree or residency program in a public hospital or in a public 
8.21 	clinic; or
8.22 	(iii) students who are serving for a period not to exceed five years in an internship or a 
8.23 	residency program that is sponsored by a governmental subdivision, including an accredited 
8.24 	educational institution;
8.25 	(10) persons who hold a part-time adult supplementary technical college license who 
8.26 	render part-time teaching service in a technical college;
8.27 	(11) for the first three years of employment, foreign citizens who are employed by a 
8.28 	governmental subdivision, except that the following foreign citizens must be considered 
8.29 	included employees under subdivision 2a:
8.30 	(i) H-1B, H-1B1, and E-3 status holders;
8.31 	(ii) employees of Hennepin County or Hennepin Healthcare System, Inc.;
8.32 	(iii) employees legally authorized to work in the United States for three years or more; 
8.33 	and
9.1 	(iv) employees otherwise required to participate under federal law;
9.2 	(12) public hospital employees who elected not to participate as members of the 
9.3 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
9.4 	1, 1988;
9.5 	(13) except as provided in section 353.86, volunteer ambulance service personnel, as 
9.6 	defined in subdivision 35, but persons who serve as volunteer ambulance service personnel 
9.7 	may still qualify as public employees under subdivision 2 and may be members of the Public 
9.8 	Employees Retirement Association and participants in the general employees retirement 
9.9 	plan or the public employees police and fire plan, whichever applies, on the basis of 
9.10 	compensation received from public employment service other than service as volunteer 
9.11 	ambulance service personnel;
9.12 	(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 
9.13 	36, engaging in activities undertaken as part of volunteer firefighter duties, but a person 
9.14 	who is a volunteer firefighter may still qualify as a public employee under subdivision 2 
9.15 	and may be a member of the Public Employees Retirement Association and a participant 
9.16 	in the general employees retirement plan or the public employees police and fire plan, 
9.17 	whichever applies, on the basis of compensation received from public employment activities 
9.18 	other than those as a volunteer firefighter;
9.19 	(15) employees in the building and construction trades, as follows:
9.20 	(i) pipefitters and associated trades personnel employed by Independent School District 
9.21 	No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters 
9.22 	local 455 pension plan who were either first employed after May 1, 1997, or, if first employed 
9.23 	before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section 
9.24 	12;
9.25 	(ii) electrical workers, plumbers, carpenters, and associated trades personnel employed 
9.26 	by Independent School District No. 625, St. Paul, or the city of St. Paul, with coverage 
9.27 	under a collective bargaining agreement by the electrical workers local 110 pension plan, 
9.28 	the plumbers local 34 pension plan, or the carpenters local 322 pension plan who were either 
9.29 	first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be 
9.30 	excluded under Laws 2000, chapter 461, article 7, section 5;
9.31 	(iii) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, 
9.32 	allied tradesworkers, and plasterers employed by the city of St. Paul or Independent School 
9.33 	District No. 625, St. Paul, with coverage under a collective bargaining agreement by the 
9.34 	bricklayers and allied craftworkers local 1 pension plan, the cement masons local 633 
10.1 	pension plan, the glaziers and glassworkers local 1324 pension plan, the painters and allied 
10.2 	trades local 61 pension plan, or the plasterers local 265 pension plan who were either first 
10.3 	employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded 
10.4 	under Laws 2001, First Special Session chapter 10, article 10, section 6;
10.5 	(iv) plumbers employed by the Metropolitan Airports Commission, with coverage under 
10.6 	a collective bargaining agreement by the plumbers local 34 pension plan, who were either 
10.7 	first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be 
10.8 	excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;
10.9 	(v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation 
10.10 	Board, with coverage under a collective bargaining agreement by the electrical workers 
10.11 	local 292 pension plan or the pipefitters local 539 pension plan, who were first employed 
10.12 	before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11, 
10.13 	section 5;
10.14 	(vi) laborers and associated trades personnel employed by the city of St. Paul or 
10.15 	Independent School District No. 625, St. Paul, who are designated as temporary employees 
10.16 	with coverage under a collective bargaining agreement by a multiemployer plan as defined 
10.17 	in section 356.27, subdivision 1, who were either first employed on or after June 1, 2018, 
10.18 	or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter 
10.19 	211, article 16, section 13; and
10.20 	(vii) employees who are trades employees as defined in section 356.27, subdivision 1, 
10.21 	first hired on or after July 1, 2020, by the city of St. Paul or Independent School District 
10.22 	No. 625, St. Paul, except for any trades employee for whom contributions are made under 
10.23 	section 356.24, subdivision 1, clause (8), (9), or (10), by either employer to a multiemployer 
10.24 	plan as defined in section 356.27, subdivision 1;
10.25 	(16) employees who are hired after June 30, 2002, solely to fill seasonal positions under 
10.26 	subdivision 12b which are limited in duration by the employer to a period of six months or 
10.27 	less in each year of employment with the governmental subdivision;
10.28 	(17) persons who are provided supported employment or work-study positions by a 
10.29 	governmental subdivision and who participate in an employment or industries program 
10.30 	maintained for the benefit of these persons where the governmental subdivision limits the 
10.31 	position's duration to up to five years, including persons participating in a federal or state 
10.32 	subsidized on-the-job training, work experience, senior citizen, youth, or unemployment 
10.33 	relief program where the training or work experience is not provided as a part of, or for, 
10.34 	future permanent public employment;
11.1 	(18) independent contractors and the employees of independent contractors;
11.2 	(19) reemployed annuitants of the association during the course of that reemployment;
11.3 	(20) persons appointed to serve on a board or commission of a governmental subdivision 
11.4 	or an instrumentality thereof;
11.5 	(21) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan 
11.6 	Transit Commission who are members of the International Brotherhood of Teamsters Local 
11.7 	638 and who are, by virtue of that employment, members of the International Brotherhood 
11.8 	of Teamsters Central States pension plan; and
11.9 	(22) persons employed by the Duluth Transit Authority or any subdivision thereof who 
11.10 	are members of the Teamsters General Local Union 346 and who are, by virtue of that 
11.11 	employment, members of the Central States Southeast and Southwest Areas Pension Fund.
11.12 	(b) Any person performing the duties of a public officer in a position defined in 
11.13 	subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an 
11.14 	employee of an independent contractor.

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

11.16 	Sec. 3. Minnesota Statutes 2024, section 353.01, subdivision 2d, is amended to read:
11.17 		Subd. 2d.Optional membership. (a) Membership in the association is optional by 
11.18 	action of the individual employee for the following public employees who meet the conditions 
11.19 	set forth in subdivision 2a:
11.20 	(1) members of the coordinated plan who are also employees of labor organizations as 
11.21 	defined in section 353.017, subdivision 1, for their employment by the labor organization 
11.22 	only, if they elect to have membership under section 353.017, subdivision 2;
11.23 	(2) persons who are elected or persons who are appointed to elected positions, other 
11.24 	than local governing body elected positions, and who elect to participate within 30 days of 
11.25 	taking office by filing completing and signing a written election for membership election 
11.26 	on a form prescribed by the executive director of the association and filing the membership 
11.27 	election with the association within 60 days of taking office;
11.28 	(3) members of the association who are appointed by the governor to be a state department 
11.29 	head and who elect not to be covered by the general state employees retirement plan of the 
11.30 	Minnesota State Retirement System under section 352.021;
11.31 	(4) city managers as defined in section 353.028, subdivision 1, who do not elect to be 
11.32 	excluded from membership in the association under section 353.028, subdivision 2; and
12.1 	(5) employees of the Port Authority of the city of St. Paul on January 1, 2003, who were 
12.2 	at least age 45 on that date, and who elected to participate by filing a written completing 
12.3 	and signing a membership election for membership.
12.4 	(b) Membership in the association is optional by action of the governmental subdivision 
12.5 	for the employees of the following governmental subdivisions under the conditions specified:
12.6 	(1) the Minnesota Association of Townships if the board of that association, at its option, 
12.7 	certifies to the executive director that its employees who meet the conditions set forth in 
12.8 	subdivision 2a are to be included for purposes of retirement coverage, in which case the 
12.9 	status of the association as a participating employer is permanent;
12.10 	(2) a county historical society if the county in which the historical society is located, at 
12.11 	its option, certifies to the executive director that the employees of the historical society who 
12.12 	meet the conditions set forth in subdivision 2a are to be considered county employees for 
12.13 	purposes of retirement coverage under this chapter. The status as a county employee must 
12.14 	be accorded to all similarly situated county historical society employees and, once established, 
12.15 	must continue as long as a person is an employee of the county historical society; and
12.16 	(3) Hennepin Healthcare System, Inc., a public corporation, with respect to employees 
12.17 	other than paramedics, emergency medical technicians, and protection officers, if the 
12.18 	corporate board establishes alternative retirement plans for certain classes of employees of 
12.19 	the corporation and certifies to the association the applicable employees to be excluded 
12.20 	from future retirement coverage.
12.21 	(c) For employees who are covered by paragraph (a), clause (1), (2), or (3), or covered 
12.22 	by paragraph (b), clause (1) or (2), if the necessary membership election is not made, the 
12.23 	employee is excluded from retirement coverage under this chapter. For employees who are 
12.24 	covered by paragraph (a), clause (4), if the necessary election of exclusion is not made, the 
12.25 	employee must become a member and have retirement coverage under the applicable 
12.26 	provisions of this chapter. For employees specified in paragraph (b), clause (3), membership 
12.27 	continues until the exclusion option is exercised for the designated class of employee.
12.28 	(d) The option to become a member, once exercised under this subdivision, may not be 
12.29 	withdrawn until the termination of public service as defined under subdivision 11a.

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

12.31 	Sec. 4. Minnesota Statutes 2024, section 353.028, subdivision 2, is amended to read:
12.32 		Subd. 2.Election. (a) A city manager first employed by a city may make a onetime, 
12.33 	irrevocable election to be excluded from membership in the general employees retirement 
13.1 	plan of the association. The election of exclusion must be made within 30 days following 
13.2 	the commencement of employment, must be made in writing on a form prescribed by the 
13.3 	executive director, and must be approved by a resolution adopted by the governing body 
13.4 	of the city, and must be filed with the association within 60 days of commencing employment. 
13.5 	The election of exclusion is not effective until it is filed with the executive director. 
13.6 	Membership of a city manager in the general employees retirement plan ceases on the date 
13.7 	the written election of exclusion is received by the executive director. Employee and 
13.8 	employer contributions made during the first 30 60 days of employment on behalf of a 
13.9 	person exercising the option to be excluded from membership under this paragraph must 
13.10 	be refunded or credited in accordance with section 353.27, subdivision 7.
13.11 	(b) A city manager who has previously been an employee in any position covered by 
13.12 	any retirement plan administered by the association to which the city contributed or by any 
13.13 	supplemental pension or deferred compensation plan under section 356.24 sponsored by 
13.14 	the city is not eligible to make the election under paragraph (a).
13.15 	(c) Any election under paragraph (a) must include a statement that the individual will 
13.16 	not seek authorization to purchase service credit for any period of excluded service.

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

13.18 	Sec. 5. Minnesota Statutes 2024, section 353.028, subdivision 3, is amended to read:
13.19 		Subd. 3.Deferred compensation; city contribution. (a) If an election of exclusion 
13.20 	under subdivision 2 is made, and if the city manager and the governing body of the city 
13.21 	additionally agree in writing that the additional compensation is to be deferred and is to be 
13.22 	contributed on behalf of the city manager to a deferred compensation program that meets 
13.23 	the requirements of section 457 of the Internal Revenue Code of 1986, as amended, and 
13.24 	section 356.24, the governing body may compensate the city manager, in addition to the 
13.25 	salary allowed under any limitation imposed on salaries by law or charter, in an amount 
13.26 	equal to the employer contribution that would be required by section 353.27, subdivision 
13.27 	3, if the city manager were a member of the general employees retirement plan.
13.28 	(b) Alternatively, if an election of exclusion under subdivision 2 is made, the city manager 
13.29 	and the governing body of the city may agree in writing that the equivalent employer 
13.30 	contribution to the contribution under section 353.27, subdivision 3, be contributed by the 
13.31 	city to the defined contribution plan of the Public Employees Retirement Association under 
13.32 	chapter 353D. Any An election and agreement under this paragraph must be entered into 
13.33 	within 30 days following the commencement of employment.

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

14.2 	Sec. 6. Minnesota Statutes 2024, section 353.27, subdivision 3a, is amended to read:
14.3 		Subd. 3a.Additional employer contribution. (a) An additional employer contribution 
14.4 	to the general employees retirement fund of the Public Employees Retirement Association 
14.5 	must be made equal to the following applicable percentage of the total salary amount for 
14.6 	"basic members" and for "coordinated members":

14.7			Basic Program
		Coordinated Program
	
14.8	Effective before January 1, 2006
		2.68
		.43
	
14.9	Effective January 1, 2006
		2.68
		.5
	
14.10	Effective January 1, 2009
		2.68
		.75
	
14.11	Effective January 1, 2010
		2.68
		1
	
14.12 	These contributions must be made from funds available to the employing subdivision 
14.13 	by the means and in the manner provided in section 353.28.
14.14 	(b) The coordinated program contribution rates set forth in paragraph (a) effective for 
14.15 	January 1, 2010, must not be implemented if, following receipt of the July 1, 2009, annual 
14.16 	actuarial valuation report under section 356.215, respectively, the actuarially required 
14.17 	contributions are equal to or less than the total rates under this section in effect as of January 
14.18 	1, 2008.
14.19 	(c) (b) This subdivision is repealed once the actuarial value of the assets of the general 
14.20 	employees retirement plan of the Public Employees Retirement Association equal or exceed
14.21 	98 percent of the actuarial accrued liability of the plan as determined by the actuary retained 
14.22 	under sections 356.214 and 356.215. The repeal is effective on the first day of the first full 
14.23 	pay period occurring after March 31 of the calendar year following the issuance of the 
14.24 	actuarial valuation upon which the repeal is based.

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

14.26 	Sec. 7. Minnesota Statutes 2024, section 353.34, subdivision 5, is amended to read:
14.27 		Subd. 5.Right to a refund generally unlimited. The right to a refund provided in this 
14.28 	chapter, and laws amendatory thereof, is not restricted as to time unless specifically provided 
14.29 	and the statute of limitation does not apply thereto.

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

15.1 	Sec. 8. Minnesota Statutes 2024, section 353E.06, subdivision 1, is amended to read:
15.2 		Subdivision 1.Duty disability qualification requirements. A member who is determined 
15.3 	to qualify for a duty disability as defined in section 353E.001, subdivision 1, is entitled to 
15.4 	a disability benefit. The disability benefit must be based on covered service under this 
15.5 	chapter only and is an amount equal to 47.5 percent of the average salary defined in section 
15.6 	353E.04, subdivision 2, plus an additional 1.9 percent, for each year of covered service 
15.7 	under this chapter in excess of 25 years.:
15.8 	(1) 1.9 percent for each year of allowable service beginning before July 1, 2025; and
15.9 	(2) 2.2 percent for each year of allowable service beginning after June 30, 2025.

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

15.11 	Sec. 9. Minnesota Statutes 2024, section 356.415, subdivision 1b, is amended to read:
15.12 		Subd. 1b.Annual postretirement adjustments; PERA Public Employees Retirement 
15.13 	Association; general employees retirement plan. (a) Annuities, disability benefits, and 
15.14 	survivor benefits being paid from the general employees retirement plan of the Public 
15.15 	Employees Retirement Association shall be increased effective each January 1 by the 
15.16 	percentage of increase determined under this subdivision. The increase to the annuity or 
15.17 	benefit shall be determined by multiplying the monthly amount of the annuity or benefit by 
15.18 	the percentage of increase specified in paragraph (b), after taking into account any reduction 
15.19 	to the percentage of increase required under paragraph (c) (d).
15.20 	(b) The percentage of increase shall be one percent unless the federal Social Security 
15.21 	Administration has announced a cost-of-living adjustment pursuant to United States Code, 
15.22 	title 42, section 415(i), in the last quarter of the preceding calendar year that is greater than 
15.23 	two one percent. If the cost-of-living adjustment announced by the federal Social Security 
15.24 	Administration is greater than two one percent, the percentage of increase shall be 50 percent 
15.25 	of must be the same as the cost-of-living adjustment announced by the federal Social Security 
15.26 	Administration, but in no event may the percentage of increase exceed 1.5 percent the 
15.27 	applicable maximum percentage in effect on January 1 under paragraph (c).
15.28 	(c) The applicable maximum percentage in effect on January 1 is 1.75 percent, unless 
15.29 	either of the following is true, in which case the applicable maximum percentage is 1.5 
15.30 	percent:
15.31 	(1) the market value of assets equals or is less than 85 percent of the actuarial accrued 
15.32 	liabilities as reported by the plan's actuary in the most recent two consecutive annual actuarial 
15.33 	valuations; or
16.1 	(2) the market value of assets equals or is less than 80 percent of the actuarial accrued 
16.2 	liabilities as reported by the plan's actuary in the most recent annual actuarial valuation.
16.3 	(c) (d)(1) If the recipient of an annuity, disability benefit, or survivor's benefit has been 
16.4 	receiving the annuity or benefit for at least 12 full months as of the June 30 of the calendar 
16.5 	year immediately before the effective date of the increase, there is no reduction in the 
16.6 	percentage of increase.
16.7 	(2) If the recipient of an annuity, disability benefit, or survivor's benefit has been receiving 
16.8 	the annuity or benefit for at least one month, but less than 12 full months, as of the June 30 
16.9 	of the calendar year immediately preceding the effective date of the increase, the percentage 
16.10 	of increase is multiplied by a fraction, the numerator of which is the number of months the 
16.11 	annuity or benefit was received as of June 30 of the preceding calendar year and the 
16.12 	denominator of which is 12.
16.13 	(d) (e) An increase in annuity or benefit payments under this section subdivision must 
16.14 	be made automatically unless written notice is filed by the recipient with the executive 
16.15 	director of the Public Employees Retirement Association requesting that the increase not 
16.16 	be made.

16.17 	EFFECTIVE DATE. This section is effective for postretirement adjustments beginning 
16.18 	on or after January 1, 2026.

16.19 	ARTICLE 3
16.20 	PUBLIC EMPLOYEES DEFINED CONTRIBUTION PLAN

16.21 	Section 1. Minnesota Statutes 2024, section 353D.02, subdivision 1, is amended to read:
16.22 		Subdivision 1.Local government officials. Eligible elected or appointed local 
16.23 	government officials may elect to participate in the defined contribution plan within the 
16.24 	first 30 days of being elected or appointed to taking public office by filing completing and 
16.25 	signing a membership application election on a form prescribed by the executive director 
16.26 	of the association authorizing contributions to be deducted from the official's salary. 
16.27 	Participation begins on the first day of the pay period for which the contributions were 
16.28 	deducted or, if pay period coverage dates are not provided, the date on which the membership 
16.29 	application election or contributions are received in the office of the association, whichever 
16.30 	is received first, provided further that the membership application election is received by 
16.31 	the association within 60 days of the receipt of the contributions taking office. An election 
16.32 	to participate in the plan is irrevocable.

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

17.1 	Sec. 2. Minnesota Statutes 2024, section 353D.02, subdivision 2, is amended to read:
17.2 		Subd. 2.Eligible physicians. Eligible physicians may elect to participate in the defined 
17.3 	contribution plan within the first 30 days of commencing employment with a government 
17.4 	subdivision under section 353.01, subdivision 6, by filing completing and signing a 
17.5 	membership application election on a form prescribed by the executive director of the 
17.6 	association authorizing contributions to be deducted from the physician's salary and filing 
17.7 	the membership election with the association within 60 days of commencing employment. 
17.8 	Participation begins on the first day of the pay period for which the contributions were 
17.9 	deducted. An election to participate in the defined contribution plan is irrevocable.

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

17.11 	Sec. 3. Minnesota Statutes 2024, section 353D.02, subdivision 3, is amended to read:
17.12 		Subd. 3.Eligible ambulance service personnel. Each public ambulance service with 
17.13 	eligible personnel may elect to participate in the plan. If a service elects to participate, its 
17.14 	eligible personnel may elect to participate or decline to participate. An individual's 
17.15 	membership election must be made within 30 days of the service's election to participate 
17.16 	or within 30 days of the date on which the individual began employment with the service 
17.17 	or began to provide service for it, whichever date is later. The membership election must 
17.18 	be received by the association within 60 days of the service's election to participate or within 
17.19 	60 days of the date on which the individual first began employment, whichever is later. An 
17.20 	election by a service or an individual is irrevocable.

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

17.22 	Sec. 4. Minnesota Statutes 2024, section 353D.02, subdivision 4, is amended to read:
17.23 		Subd. 4.Eligible rescue squad personnel. The municipality or county, as applicable, 
17.24 	associated with a rescue squad under section 353D.01, subdivision 2, paragraph (a), clause 
17.25 	(4), may elect to participate in the plan. If the municipality or county, as applicable, elects 
17.26 	to participate, the eligible personnel may elect to participate or decline to participate. An 
17.27 	eligible individual's membership election must be made within 30 days of the service's
17.28 	municipality's or county's election to participate or within 30 days of the date on which the 
17.29 	individual first began employment with the rescue squad, whichever is later. The membership 
17.30 	election must be received by the association within 60 days of the municipality's or county's 
17.31 	election to participate or within 60 days of the date on which the individual first began 
17.32 	employment, whichever is later. Elections under this subdivision by a government unit or 
17.33 	individual are irrevocable. The municipality or county, as applicable, must specify by 
18.1 	resolution eligibility requirements for rescue squad personnel which must be satisfied if the 
18.2 	individual is to be authorized to make the membership election under this subdivision.

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

18.4 	Sec. 5. Minnesota Statutes 2024, section 353D.02, subdivision 5, is amended to read:
18.5 		Subd. 5.St. Paul Port Authority personnel. Employees of the Port Authority of the 
18.6 	city of St. Paul who do not elect to participate in the general employees retirement plan may 
18.7 	elect within the first 30 days of commencing employment to participate in the plan by filing
18.8 	completing and signing a membership application election on a form prescribed by the 
18.9 	executive director of the association authorizing contributions to be deducted from the 
18.10 	employee's salary. Participation begins on the first day of the pay period for which the 
18.11 	contributions were deducted or, if pay period coverage dates are not provided, the date on 
18.12 	which the membership application election or the contributions are received in the office 
18.13 	of the association, whichever is received first, if provided the membership application
18.14 	election is received by the association within 60 days of the receipt of the contributions
18.15 	commencing employment. An election to participate in the plan is irrevocable.

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

18.17 	Sec. 6. Minnesota Statutes 2024, section 353D.02, subdivision 6, is amended to read:
18.18 		Subd. 6.City managers. Any city managers manager who elected to be excluded within 
18.19 	30 days of commencing employment from the general employees retirement plan of the 
18.20 	Public Employees Retirement Association under section 353.028, subdivision 2, and who 
18.21 	elected to participate in the plan entered into an agreement under section 353.028, subdivision 
18.22 	3, paragraph (b), with the governing body of the city that employs the city manager to have 
18.23 	the city make contributions to the defined contribution plan under chapter 353D, must file 
18.24 	that an election with the executive director association within the first 30 60 days of 
18.25 	commencing employment to participate in the defined contribution plan. The city manager 
18.26 	must complete and sign a membership election on a form prescribed by the executive director 
18.27 	of the association. Participation begins on the first day of the pay period next following the 
18.28 	date of the coverage election. An election to participate by a city manager is irrevocable.

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

18.30 	Sec. 7. Minnesota Statutes 2024, section 353D.02, subdivision 7, is amended to read:
18.31 		Subd. 7.Certain volunteer firefighters. Volunteer or on-call firefighters who are serving 
18.32 	as members of a municipal fire department or an independent nonprofit firefighting 
19.1 	corporation and who are not covered for that firefighting service by the public employees 
19.2 	police and fire retirement plan under sections 353.63 to 353.68, by a firefighters relief 
19.3 	association under chapter 424A, or by the statewide volunteer firefighter retirement plan 
19.4 	under chapter 353G may elect to participate in the plan within the first 30 days of 
19.5 	commencing service by completing and signing a membership election on a form prescribed 
19.6 	by the executive director of the association. The membership election must be filed with 
19.7 	the association within 60 days of commencing service. An eligible firefighter's election is 
19.8 	irrevocable. No employer contribution is payable by the fire department or the firefighting 
19.9 	corporation unless the municipal governing body or the firefighting corporation governing 
19.10 	body, whichever applies, ratifies the membership election.

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

19.12 	ARTICLE 4
19.13 	PERA PRIVATIZATION

19.14 	Section 1. Minnesota Statutes 2024, section 353F.01, is amended to read:
19.15 	353F.01 PURPOSE AND INTENT.
19.16 	The purpose of this chapter is to ensure, to the extent possible, that persons employed 
19.17 	at public medical facilities who by governmental subdivisions that are privatized and 
19.18 	consequently are excluded from retirement coverage by the Public Employees Retirement 
19.19 	Association will be entitled to receive future retirement benefits under the general employees 
19.20 	retirement plan of the Public Employees Retirement Association commensurate with the 
19.21 	prior contributions made by them or made on their behalf upon the privatization of the 
19.22 	medical facility governmental subdivision.

19.23 	Sec. 2. Minnesota Statutes 2024, section 353F.02, is amended by adding a subdivision to 
19.24 	read:
19.25 		Subd. 2a.Association. "Association" means the Public Employees Retirement Association 
19.26 	established under chapter 353.

19.27 	Sec. 3. Minnesota Statutes 2024, section 353F.02, subdivision 3, is amended to read:
19.28 		Subd. 3.Effective date of privatization. "Effective date of privatization" means the 
19.29 	date that the operation of a medical facility is assumed by another a governmental subdivision 
19.30 	becomes a privatized employer or the date that a medical facility governmental subdivision
19.31 	is purchased by another employer in a privatization and active membership in the Public 
19.32 	Employees Retirement association consequently terminates.

20.1 	Sec. 4. Minnesota Statutes 2024, section 353F.02, is amended by adding a subdivision to 
20.2 	read:
20.3 		Subd. 3b.Funding ratio. "Funding ratio" means the actuarial value of assets of the 
20.4 	general employees retirement fund, divided by the present value of accrued benefits for the 
20.5 	fund, expressed as a percentage.

20.6 	Sec. 5. Minnesota Statutes 2024, section 353F.02, is amended by adding a subdivision to 
20.7 	read:
20.8 		Subd. 3c.General employees retirement fund. "General employees retirement fund" 
20.9 	means the general employees retirement fund as defined under section 353.27, subdivision 
20.10 	1.

20.11 	Sec. 6. Minnesota Statutes 2024, section 353F.02, is amended by adding a subdivision to 
20.12 	read:
20.13 		Subd. 3d.General employees retirement plan. "General employees retirement plan" 
20.14 	or "general plan" means the general employees retirement plan of the association established 
20.15 	under chapter 353.

20.16 	Sec. 7. Minnesota Statutes 2024, section 353F.02, is amended by adding a subdivision to 
20.17 	read:
20.18 		Subd. 3e.Governmental subdivision. "Governmental subdivision" has the meaning 
20.19 	given in section 353.01, subdivision 6.

20.20 	Sec. 8. Minnesota Statutes 2024, section 353F.02, subdivision 4b, is amended to read:
20.21 		Subd. 4b.Privatization. "Privatization" means a medical facility that privatizes when 
20.22 	the facility the process of privatizing, through which a governmental subdivision ceases to 
20.23 	be a governmental subdivision for any reason other than that the medical facility
20.24 	governmental subdivision closes or permanently ceases to operate.

20.25 	Sec. 9. Minnesota Statutes 2024, section 353F.02, is amended by adding a subdivision to 
20.26 	read:
20.27 		Subd. 4c.Privatize or privatizing. "Privatize" or "privatizing" means to engage in a 
20.28 	transaction, including a sale to, acquisition by, or merger with an entity or a sale to or 
20.29 	acquisition by one or more individuals, or a series of such transactions that result in a 
20.30 	governmental subdivision ceasing to be a governmental subdivision on or after the effective 
21.1 	date of privatization. Privatize or privatizing does not mean ceasing to be a governmental 
21.2 	subdivision because the subdivision closed or permanently ceased to operate.

21.3 	Sec. 10. Minnesota Statutes 2024, section 353F.02, subdivision 5a, is amended to read:
21.4 		Subd. 5a.Privatized former public employer. "Privatized former public employer" 
21.5 	means a medical facility that was included in the definition of an entity that was a
21.6 	governmental subdivision under section 353.01, subdivision 6, on the day before the effective 
21.7 	date of privatization that is privatized and whose employees are certified for participation 
21.8 	under this chapter privatized employees.

21.9 	Sec. 11. Minnesota Statutes 2024, section 353F.02, subdivision 6, is amended to read:
21.10 		Subd. 6.Privatized former public employee. (a) "Privatized former public employee" 
21.11 	means a person who, before the effective date of the privatization of a governmental 
21.12 	subdivision:
21.13 	(1) was employed by the privatized former public employer on the day before the effective 
21.14 	date of privatization; or governmental subdivision; and
21.15 	(2) terminated employment with the privatized former public employer on the day before 
21.16 	the effective date; and
21.17 	(3) (2) was a participant in member of the general employees retirement plan of the 
21.18 	Public Employees Retirement Association at the time of termination of employment with 
21.19 	the privatized former public employer for the period of employment with the governmental 
21.20 	subdivision.
21.21 	(b) Privatized former public employee does not mean a person who, on the day before 
21.22 	the effective date of privatization, was simultaneously employed with the privatized former 
21.23 	public employer and by a governmental subdivision under section 353.01, subdivision 6,
21.24 	and who, after the effective date of privatization, continues to accrue service credit under 
21.25 	section 353.01, subdivision 16, through simultaneous employment with a governmental 
21.26 	subdivision.

21.27 	Sec. 12. Minnesota Statutes 2024, section 353F.02, is amended by adding a subdivision 
21.28 	to read:
21.29 		Subd. 6a.Privatizing active employee. "Privatizing active employee" means a privatized 
21.30 	employee who was employed by the privatizing governmental subdivision on the day before 
21.31 	the effective date of the privatization.

22.1 	Sec. 13. Minnesota Statutes 2024, section 353F.025, is amended to read:
22.2 	353F.025 CERTIFICATION AND DECERTIFICATION OF MEDICAL 
22.3 	FACILITIES AND OTHER PUBLIC EMPLOYING UNITS WITHDRAWAL 
22.4 	LIABILITY.
22.5 		Subdivision 1.Eligibility determination and calculation of withdrawal liability. (a) 
22.6 	The chief clericalThis section applies to any governmental subdivision that privatizes.
22.7 	(b) Before the effective date of privatization, an officer of a the governmental subdivision 
22.8 	may that is privatizing or that has control or ownership of an entity that is privatizing must 
22.9 	submit to the executive director a resolution from the governing body to the executive 
22.10 	director of the Public Employees Retirement Association which supports providing coverage 
22.11 	under this chapter for employees of that governmental subdivision who are privatized, and 
22.12 	which states that the governing body will pay for actuarial calculations, as further specified 
22.13 	in paragraph (c). of the governmental subdivision stating the following:
22.14 	(1) that it is the intention of the governmental subdivision to privatize or to engage in a 
22.15 	privatization that will result in the controlled or owned entity becoming privatized; and
22.16 	(2) that the governmental subdivision will reimburse the association for the cost to 
22.17 	calculate withdrawal liability under paragraph (d).
22.18 	(b) (c) The governing body must also provide to the executive director a copy of any 
22.19 	applicable the purchase or, lease, or other transaction agreement and any other information 
22.20 	requested by the executive director to allow the executive director to verify that under the 
22.21 	proposed employer change, determine whether the new employer does not qualify as, after 
22.22 	the privatization, will be a governmental subdivision under section 353.01, subdivision 6
22.23 	or a privatized employer, making the employees ineligible for continued coverage as active 
22.24 	members of the general employees retirement plan of the Public Employees Retirement 
22.25 	Association.
22.26 	(c) Following (d) If, within 30 days after receipt of a the resolution and a determination 
22.27 	by information under paragraph (b), the executive director determines that the new employer 
22.28 	is after the privatization will not be a governmental subdivision, the executive director shall
22.29 	must direct the consulting actuary retained by the association under section 356.214 to 
22.30 	determine whether the general employees retirement plan of the Public Employees Retirement 
22.31 	Association, if coverage under this chapter is provided, is expected to receive a net gain or 
22.32 	a net loss if privatization occurs. A net gain is expected if the actuarial liability of the special 
22.33 	benefit coverage provided under this chapter, if extended to the applicable employees under 
22.34 	the privatization, is less than the actuarial gain otherwise to accrue to the plan. A net loss 
23.1 	is expected if the actuarial accrued liability of the special benefit coverage provided under 
23.2 	this chapter, if extended to the applicable employees under the privatization, is more than 
23.3 	the actuarial gain otherwise to accrue to the plan. The date of the actuarial calculations used 
23.4 	to make this determination must be within one year of the effective date of privatization
23.5 	calculate the withdrawal liability to be incurred by the privatized employer on the effective 
23.6 	date of the privatization. Withdrawal liability and present value must be calculated as 
23.7 	provided in paragraphs (e) and (f), respectively.
23.8 	(e) Withdrawal liability is equal to the present value of accrued benefits attributable to 
23.9 	the privatizing active employees minus the product of:
23.10 	(1) the present value of accrued benefits attributable to the privatizing active employees; 
23.11 	and
23.12 	(2) the general plan's funding ratio.
23.13 	If the withdrawal liability is a negative number, the withdrawal liability is zero. Withdrawal 
23.14 	liability must be calculated using the most recently completed actuarial valuation before 
23.15 	the effective date of privatization.
23.16 	(f) Present value of accrued benefits is determined using the actuarial assumptions under 
23.17 	section 356.215, subdivision 8, for the general plan. The present value of accrued benefits 
23.18 	does not include projected compensation or projected service.
23.19 	(g) The governmental subdivision must reimburse the association for the cost of 
23.20 	calculating the withdrawal liability.
23.21 		Subd. 1a.Payment of withdrawal liability. No later than six months after the effective 
23.22 	date of privatization, the privatized employer must pay the withdrawal liability calculated 
23.23 	under subdivision 1 to the general employees retirement fund, unless the privatized employer 
23.24 	elects a payment plan. In lieu of a single withdrawal liability payment, the privatized 
23.25 	employer may elect to pay the withdrawal liability with interest compounded annually at 
23.26 	the applicable rate or rates specified in section 356.59, subdivision 3, in equal annual 
23.27 	payments for a term of no longer than ten years. The obligation to pay under this subdivision 
23.28 	is binding upon the privatized employer and its successors and assignees.
23.29 		Subd. 2.Reporting privatizations. (a) If the actuarial calculations under subdivision 
23.30 	1, paragraph (c), indicate privatization can be approved because a net gain to the general 
23.31 	employees retirement plan of the Public Employees Retirement association is expected, or 
23.32 	if paragraph (b) applies, the executive director shall, following acceptance of the actuarial 
23.33 	calculations by The association must maintain a record of the consulting actuary's calculation 
24.1 	of withdrawal liability under subdivision 1 and any associated report. The calculation and 
24.2 	any associated report must be made publicly available and provided to:
24.3 	(1) the board of trustees, forward notice and supporting documentation, including a copy 
24.4 	of the actuary's report and findings, to;
24.5 	(2) the chair and the executive director of the Legislative Commission on Pensions and 
24.6 	Retirement; and
24.7 	(3) the chairs and the ranking minority members of the legislative committees with 
24.8 	jurisdiction over governmental operations in the house of representatives and senate.
24.9 	(b) If the calculations under subdivision 1, paragraph (c), indicate a net loss, the executive 
24.10 	director shall recommend to the board of trustees that the privatization be approved if the 
24.11 	chief clerical officer of the applicable governmental subdivision submits a resolution from 
24.12 	the governing body specifying that a lump sum payment will be made to the Public 
24.13 	Employees Retirement Association equal to the net loss, plus interest. The interest must be 
24.14 	computed using the applicable ultimate investment return assumption under section 356.215, 
24.15 	subdivision 8, expressed as a monthly rate, from the date of the actuarial valuation from 
24.16 	which the actuarial accrued liability data was used to determine the net loss in the actuarial 
24.17 	study under subdivision 1, to the date of payment, with annual compounding. Payment must 
24.18 	be made on or after the effective date of privatization.
24.19 	(c) (b) The Public Employees Retirement association must maintain a list that includes 
24.20 	the names of all privatized former public employers in the association's annual comprehensive 
24.21 	annual financial report and on the association's website. Beginning July 1, 2027, the 
24.22 	association must also include in the list the amount of the withdrawal liability determined 
24.23 	as of the effective date of privatization and the remaining amount, if any, of withdrawal 
24.24 	liability due to be paid for each privatized employer.

24.25 	Sec. 14. Minnesota Statutes 2024, section 353F.03, is amended to read:
24.26 	353F.03 VESTING RULE FOR CERTAIN EMPLOYEES.
24.27 	Notwithstanding any provision of chapter 353 to the contrary, a privatized former public
24.28 	employee is eligible to receive a retirement annuity under section 353.29 of the edition of 
24.29 	Minnesota Statutes published in the year before the year in which the privatization occurred, 
24.30 	without regard to the requirement specified in section 353.01, subdivision 47.

25.1 	Sec. 15. Minnesota Statutes 2024, section 353F.04, is amended to read:
25.2 	353F.04 AUGMENTATION INTEREST RATES FOR PRIVATIZED FORMER 
25.3 	PUBLIC EMPLOYEES.
25.4 		Subdivision 1.Enhanced augmentation rates. (a) The deferred annuity of a privatized 
25.5 	former public employee is subject to augmentation under section 353.34, subdivision 3, 
25.6 	except that the rate of augmentation is as specified in this section.
25.7 	(b) This paragraph applies if the effective date of privatization was on or before January 
25.8 	1, 2007, and also applies to Hutchinson Area Health Care with a privatization effective date 
25.9 	of January 1, 2008. For a privatized former public employee, the augmentation rate is 5.5 
25.10 	percent compounded annually until January 1 following the year in which the person
25.11 	privatized employee attains age 55. After that date, the augmentation rate is 7.5 percent 
25.12 	compounded annually.
25.13 	(c) If paragraph (b) is not applicable, and if the effective date of the privatization is after 
25.14 	January 1, 2007, and before January 1, 2011, then the augmentation rate is four percent 
25.15 	compounded annually until January 1, following the year in which the person privatized 
25.16 	employee attains age 55. After that date, the augmentation rate is six percent compounded 
25.17 	annually.
25.18 	(d) If the effective date of the privatization is after December 31, 2010, the augmentation 
25.19 	rate depends on the result of computations specified in section 353F.025, subdivision 1. If 
25.20 	those computations indicate no loss or a net gain to the fund of the general employees 
25.21 	retirement plan of the Public Employees Retirement Association fund, the augmentation 
25.22 	rate is two percent compounded annually. If the computations under that subdivision indicate 
25.23 	a net loss to the fund if a two percent augmentation rate is used, but a net gain or no loss if 
25.24 	a one percent rate is used, then the augmentation rate is one percent compounded annually.
25.25 	(e) Notwithstanding paragraphs (b) to (d), after June 30, 2020, and before January 1, 
25.26 	2024, the augmentation rate for all privatized former public employees under paragraphs 
25.27 	(b) to (d) is two percent compounded annually. After December 31, 2023, no additional 
25.28 	augmentation is applied to the deferred annuities of privatized former public employee's 
25.29 	deferred annuity employees.
25.30 		Subd. 2.Exceptions. The augmentation rates specified in subdivision 1 do not apply to 
25.31 	a privatized former public employee:
25.32 	(1) beginning the first of the month in which the privatized former public employee 
25.33 	becomes covered again by a retirement plan enumerated in section 356.30, subdivision 3, 
26.1 	if the employee accrues at least six months of credited service in any single plan enumerated 
26.2 	in section 356.30, subdivision 3, except clause (6);
26.3 	(2) beginning the first of the month in which the privatized former public employee 
26.4 	becomes covered again by the general employees retirement plan of the Public Employees 
26.5 	Retirement Association;
26.6 	(3) beginning the first of the month after a privatized former public employee terminates 
26.7 	service with the privatized former public employer;
26.8 	(4) if the privatized former public employee begins receipt of a retirement annuity while 
26.9 	employed by the privatized former public employer; or
26.10 	(5) if the effective date of privatization occurs after June 30, 2020.

26.11 	Sec. 16. Minnesota Statutes 2024, section 353F.05, is amended to read:
26.12 	353F.05 AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE FOR 
26.13 	EARLY RETIREMENT PURPOSES.
26.14 	(a) For the purpose of determining eligibility for early retirement benefits provided under 
26.15 	section 353.30, subdivision 1a, of the edition of Minnesota Statutes published in the year 
26.16 	before the year in which the privatization occurred, and notwithstanding any provision of 
26.17 	chapter 353, to the contrary, the years of allowable service for a privatized former public
26.18 	employee who transfers employment on the effective date of privatization and does not 
26.19 	apply for a refund of contributions under section 353.34, subdivision 1, of the edition of 
26.20 	Minnesota Statutes published in the year before the year in which the privatization occurred, 
26.21 	or any similar provision, includes service with the privatized former public employer 
26.22 	following the effective date. The privatized former public employer shall provide any reports 
26.23 	that the executive director of the Public Employees Retirement Association may reasonably 
26.24 	request to permit calculation of benefits.
26.25 	(b) To be eligible for early retirement benefits under this section, the individual privatized 
26.26 	employee must separate from service with the privatized former public employer. The 
26.27 	privatized former public employee, or an individual authorized to act on behalf of that 
26.28 	employee, may apply for an annuity following application procedures under section 353.29, 
26.29 	subdivision 4.

26.30 	Sec. 17. Minnesota Statutes 2024, section 353F.051, subdivision 1, is amended to read:
26.31 		Subdivision 1.Eligibility. A privatized former public employee who is totally and 
26.32 	permanently disabled under section 353.01, subdivision 19, and who had a medically 
27.1 	documented preexisting condition of the disability before the termination of coverage, may 
27.2 	apply for a disability benefit.

27.3 	Sec. 18. Minnesota Statutes 2024, section 353F.051, subdivision 2, is amended to read:
27.4 		Subd. 2.Calculation of benefits. A person qualifying under subdivision 1 is entitled to 
27.5 	receive a disability benefit calculated under section 353.33, subdivision 3. The disability 
27.6 	benefit must be augmented under section 353.71, subdivision 2, from the date of termination 
27.7 	to the date the disability benefit begins to accrue.

27.8 	Sec. 19. Minnesota Statutes 2024, section 353F.052, is amended to read:
27.9 	353F.052 APPLICATION OF SURVIVING SPOUSE, DEPENDENT CHILD 
27.10 	PROVISION.
27.11 	Notwithstanding any provisions of law to the contrary, subdivisions within section 
27.12 	353.32 of the edition of Minnesota Statutes published in the year before the year in which 
27.13 	a privatization occurred, applicable to the surviving spouse or dependent children of a former 
27.14 	member as defined in section 353.01, subdivision 7a, apply to the survivors of a privatized 
27.15 	former public employee.

27.16 	Sec. 20. Minnesota Statutes 2024, section 353F.057, is amended to read:
27.17 	353F.057 TERMINATION FROM SERVICE REQUIREMENT.
27.18 	Upon termination of service from the privatized former public employer after the effective 
27.19 	date of privatization, a privatized former public employee must separate from any 
27.20 	employment relationship with the privatized former public employer for at least 30 days to 
27.21 	qualify to receive a retirement annuity under this chapter.

27.22 	Sec. 21. Minnesota Statutes 2024, section 353F.06, is amended to read:
27.23 	353F.06 APPLICATION OF REEMPLOYED ANNUITANT EARNINGS 
27.24 	LIMITATIONS.
27.25 	If a privatized former public employee satisfies the separation from service requirement 
27.26 	in section 353F.057 and thereafter resumes employment with the privatized former public
27.27 	employer or a governmental subdivision under section 353.01, subdivision 6, the reemployed 
27.28 	annuitant earnings limitations of section 353.37 apply.

28.1 	Sec. 22. Minnesota Statutes 2024, section 353F.07, is amended to read:
28.2 	353F.07 EFFECT ON REFUND.
28.3 	Notwithstanding any provision of chapter 353 to the contrary, privatized former public
28.4 	employees may receive a refund of employee accumulated contributions plus interest as 
28.5 	provided in section 353.34, subdivision 2, at any time after the transfer of employment to 
28.6 	the privatized former public employer. If a privatized former public employee has received 
28.7 	a refund from a pension plan listed in section 356.30, subdivision 3, the person privatized 
28.8 	employee may not repay that refund unless the person privatized employee again becomes 
28.9 	a member of one of those listed plans and complies with section 356.30, subdivision 2.

28.10 	Sec. 23. Minnesota Statutes 2024, section 353F.08, is amended to read:
28.11 	353F.08 COUNSELING SERVICES.
28.12 	The privatized former public employer and the executive director of the Public Employees 
28.13 	Retirement Association shall provide privatized former public employees with counseling 
28.14 	on their benefits available under the general employees retirement plan of the Public 
28.15 	Employees Retirement Association during a mutually agreed-upon period mutually agreed 
28.16 	upon before or after the effective date of privatization.

28.17 	Sec. 24. Minnesota Statutes 2024, section 353F.09, is amended to read:
28.18 	353F.09 APPLICATION TO SALES OF PRIVATIZED FORMER PUBLIC
28.19 	EMPLOYERS.
28.20 	A medical facility or other employing unit privatized employer shall cease to be a 
28.21 	privatized former public employer and its employees shall cease to be considered privatized 
28.22 	former public employees under this chapter upon the sale of the operations of the medical 
28.23 	facility or employing unit to another employer or the sale of the medical facility or employing 
28.24 	unit to another employer. The privatized former public employees shall be are entitled to 
28.25 	benefits accrued under this chapter to the date of the sale, but shall must not accrue additional 
28.26 	benefits after the date of the sale.

28.27 	Sec. 25. REPEALER.
 28.28 	Minnesota Statutes 2024, section 353F.02, subdivision 4a, is repealed.

28.29 	Sec. 26. EFFECTIVE DATE.
 28.30 	Sections 1 to 25 are effective July 1, 2027.

29.1 	ARTICLE 5
29.2 	MSRS CORRECTIONAL PLAN ELIGIBILITY WORK GROUP

29.3 	Section 1. Minnesota Statutes 2024, section 352.01, is amended by adding a subdivision 
29.4 	to read:
29.5 		Subd. 28.Executive director. "Executive director" or "director" means the executive 
29.6 	director of the system appointed under section 352.03, subdivision 5.

29.7 	Sec. 2. Minnesota Statutes 2024, section 352.029, subdivision 3, is amended to read:
29.8 		Subd. 3.Contributions. The employee and employer contributions required by section 
29.9 	352.04, or by section 352.92 for employees covered by section 352.91 352.905, are the 
29.10 	obligation of the employee who is a member under section 352.01, subdivision 2a, paragraph 
29.11 	(a), or who chooses coverage under this section. However, the employing labor organization 
29.12 	may pay the employer contributions. Contributions made by the employee must be made 
29.13 	by salary deduction. The employing labor organization shall pay all contributions to the 
29.14 	system as required by section 352.04, or by section 352.92 for employees covered by section 
29.15 	352.91 352.905.

29.16 	Sec. 3. Minnesota Statutes 2024, section 352.03, subdivision 5, is amended to read:
29.17 		Subd. 5.Executive director, deputy director, and assistant director. (a) The board 
29.18 	shall appoint an executive director, in this chapter called the director, on the basis of 
29.19 	education, experience in the retirement field, ability to manage and lead system staff, and 
29.20 	ability to assist the board in setting a vision for the system. The executive director must 
29.21 	have had at least five years' experience in either an executive level management position 
29.22 	or in a position with responsibility for the governance, management, or administration of a 
29.23 	retirement plan.
29.24 	(b) The executive director, deputy director, and assistant director must be in the 
29.25 	unclassified service but appointees may be selected from civil service lists if desired. 
29.26 	Notwithstanding any law to the contrary, the board must set the salary of the executive 
29.27 	director. The board must review the performance of the executive director on an annual 
29.28 	basis and may grant salary adjustments as a result of the review. The salary of the deputy 
29.29 	director and assistant director must be set in accordance with section 43A.18, subdivision 
29.30 	3.

30.1 	Sec. 4. Minnesota Statutes 2024, section 352.90, is amended to read:
30.2 	352.90 POLICY.
30.3 	It is the policy of the legislature to provide special retirement benefits for and special 
30.4 	contributions by certain correctional employees who may be requiredneed to retire at an 
30.5 	early age because they lose the mental or physical capacity required to maintain the safety, 
30.6 	security, discipline, and custody of inmatesincarcerated persons at state correctional facilities; 
30.7 	ofor patients and clients in the state-operated forensic services program, which is comprised 
30.8 	of the Minnesota Security Hospital, the forensic nursing home, the forensic transition service, 
30.9 	and the competency restoration program; of patients in or the Minnesota Sex Offender 
30.10 	Program; or of patients in the Minnesota Specialty Health System-Cambridge.

30.11 	Sec. 5. [352.901] DEFINITIONS APPLICABLE TO THE CORRECTIONAL PLAN.
30.12 		Subdivision 1.Terms. Unless the language or context clearly indicates a different 
30.13 	meaning is intended, the terms defined in this section have the meanings given. The 
30.14 	definitions in this section apply only to the correctional employees retirement plan and 
30.15 	supplement the definitions in section 352.01.
30.16 		Subd. 2.Chief executive officer. "Chief executive officer" means the Direct Care and 
30.17 	Treatment chief executive officer appointed under section 246C.08 or a person the chief 
30.18 	executive officer has delegated responsibilities to under sections 352.90 to 352.955, including 
30.19 	the duty to certify direct contact under section 352.905, subdivision 2.
30.20 		Subd. 3.Commissioner. "Commissioner" means the commissioner of corrections 
30.21 	appointed under section 241.01, subdivision 1, or a person the commissioner has delegated 
30.22 	responsibilities to under sections 352.90 to 352.955, including the duty to certify direct 
30.23 	contact under section 352.905, subdivision 2.
30.24 		Subd. 4.Custody. "Custody" means an employee's exercise of legal and physical control 
30.25 	over an incarcerated person, patient, or client who is detained, confined, or otherwise 
30.26 	restricted from freedom of movement.
30.27 		Subd. 5.Direct Care and Treatment. "Direct Care and Treatment" means the agency 
30.28 	established under section 246C.02.
30.29 		Subd. 6.Direct contact. "Direct contact" means interactions between an employee and 
30.30 	one or more patients, clients, or incarcerated persons where the employee is physically 
30.31 	present and engaged with patients, clients, or incarcerated persons as part of the employee's 
30.32 	normal duties, as defined in section 352.01, subdivision 17d, which must include regular 
31.1 	involvement in rehabilitation, treatment, custody, or supervision of patients, clients, or 
31.2 	incarcerated persons, while maintaining safety, security, and order.
31.3 		Subd. 7.Direct contact requirement. "Direct contact requirement" means the 
31.4 	requirement that the employee spend at least 75 percent of the employee's working time in 
31.5 	direct contact.
31.6 		Subd. 8.Eligible facility. "Eligible facility" means:
31.7 	(1) Minnesota Correctional Facility-Faribault;
31.8 	(2) Minnesota Correctional Facility-Lino Lakes;
31.9 	(3) Minnesota Correctional Facility-Moose Lake;
31.10 	(4) Minnesota Correctional Facility-Oak Park Heights;
31.11 	(5) Minnesota Correctional Facility-Red Wing;
31.12 	(6) Minnesota Correctional Facility-Rush City;
31.13 	(7) Minnesota Correctional Facility-Shakopee;
31.14 	(8) Minnesota Correctional Facility-St. Cloud;
31.15 	(9) Minnesota Correctional Facility-Stillwater;
31.16 	(10) Minnesota Correctional Facility-Togo; or
31.17 	(11) Minnesota Correctional Facility-Willow River.
31.18 		Subd. 9.Eligible program. "Eligible program" means:
31.19 	(1) the forensic services program; or
31.20 	(2) the Minnesota Sex Offender Program.
31.21 		Subd. 10.Employee organization. "Employee organization" has the meaning given in 
31.22 	section 179A.03, subdivision 6.
31.23 		Subd. 11.Rehabilitation. "Rehabilitation" means the process of providing treatment, 
31.24 	education, or other interventions designed to improve the mental, physical, or behavioral 
31.25 	condition of a patient, client, or incarcerated person with the goal of facilitating the 
31.26 	reintegration into society or improving the quality of life of the patient, client, or incarcerated 
31.27 	person.
31.28 		Subd. 12.Supervision. "Supervision" means the oversight and management of patients, 
31.29 	clients, or incarcerated persons by an employee at an eligible facility or eligible program 
32.1 	to ensure compliance with rules, regulations, and treatment plans; monitor behavior; enforce 
32.2 	discipline; and provide guidance or direction.
32.3 		Subd. 13.Treatment. "Treatment" means the broad range of services, including medical, 
32.4 	psychological, or therapeutic interventions, aimed at addressing the health, mental health, 
32.5 	or behavioral needs and overall condition of patients, clients, or incarcerated persons by or 
32.6 	under the supervision of employees at an eligible facility or eligible program.
32.7 		Subd. 14.Working time. "Working time" means time spent performing the normal 
32.8 	duties of an employee's employment position, not including time spent in training or on a 
32.9 	leave of absence for vacation, illness, or other reasons as authorized in the human resources 
32.10 	policies applicable to the employee.

32.11 	Sec. 6. [352.905] COVERED CORRECTIONAL SERVICE.
32.12 		Subdivision 1.Direct contact not required. (a) For all periods of service that an 
32.13 	employee is performing covered correctional service as defined in this subdivision, the 
32.14 	employee is a member of the correctional employees retirement plan, whether or not the 
32.15 	employee has any direct contact.
32.16 	(b) "Covered correctional service" under this subdivision means service performed by 
32.17 	a state employee employed at an eligible facility or in an eligible program in one of the 
32.18 	following employment positions:
32.19 	(1) corrections officer 1;
32.20 	(2) corrections officer 2;
32.21 	(3) corrections officer 3;
32.22 	(4) corrections lieutenant;
32.23 	(5) corrections captain;
32.24 	(6) security counselor;
32.25 	(7) security counselor lead; or
32.26 	(8) corrections canine officer.
32.27 		Subd. 2.Direct contact required. (a) For all periods of service that an employee is 
32.28 	performing covered correctional service as defined in this subdivision, the employee is a 
32.29 	member of the correctional employees retirement plan, but only if the employee satisfies 
32.30 	the direct contact requirement and the employee's employer has certified to the executive 
33.1 	director, in the manner prescribed by the executive director, that the employee satisfies the 
33.2 	direct contact requirement.
33.3 	(b) "Covered correctional service" under this subdivision means service performed by 
33.4 	a state employee employed at an eligible facility or in an eligible program in one of the 
33.5 	employment positions specified in subdivisions 3 to 6.
33.6 		Subd. 3.Employment positions A to C. Employment positions with a title that begins 
33.7 	with the letters "A" to "C":
33.8 	(1) automotive mechanic;
33.9 	(2) baker;
33.10 	(3) behavior analyst 1;
33.11 	(4) behavior analyst 2;
33.12 	(5) behavior analyst 3;
33.13 	(6) building maintenance coordinator;
33.14 	(7) building maintenance lead worker;
33.15 	(8) building maintenance supervisor 2;
33.16 	(9) building utilities mechanic;
33.17 	(10) carpenter;
33.18 	(11) carpenter lead;
33.19 	(12) central services administrative specialist intermediate;
33.20 	(13) central services administrative specialist principal;
33.21 	(14) central services administrative specialist senior;
33.22 	(15) certified occupational therapy assistant 1;
33.23 	(16) certified occupational therapy assistant 2;
33.24 	(17) chaplain;
33.25 	(18) client advocate;
33.26 	(19) clinical program therapist 1;
33.27 	(20) clinical program therapist 2;
33.28 	(21) clinical program therapist 3;
34.1 	(22) clinical program therapist 4;
34.2 	(23) cook;
34.3 	(24) cook coordinator;
34.4 	(25) corrections chief cook;
34.5 	(26) corrections discipline unit supervisor;
34.6 	(27) corrections food services supervisor;
34.7 	(28) corrections industries production supervisor;
34.8 	(29) corrections inmate program coordinator;
34.9 	(30) corrections manufacturing specialist-tool and die;
34.10 	(31) corrections manufacturing specialist-engraving and drafting;
34.11 	(32) corrections manufacturing specialist-graphics;
34.12 	(33) corrections manufacturing specialist-light assembly;
34.13 	(34) corrections manufacturing specialist-light manufacturing;
34.14 	(35) corrections manufacturing specialist-mechanical;
34.15 	(36) corrections manufacturing specialist-sales and service;
34.16 	(37) corrections manufacturing specialist-transportation and warehouse;
34.17 	(38) corrections manufacturing specialist-wood;
34.18 	(39) corrections security caseworker;
34.19 	(40) corrections security caseworker career;
34.20 	(41) corrections teaching assistant;
34.21 	(42) corrections transitions program coordinator;
34.22 	(43) culinary supervisor; and
34.23 	(44) customer services specialist principal.
34.24 		Subd. 4.Employment positions D to M. Employment positions with a title that begins 
34.25 	with the letters "D" to "M":
34.26 	(1) delivery van driver;
34.27 	(2) dental assistant;
35.1 	(3) dental hygienist;
35.2 	(4) dentist;
35.3 	(5) electrical/electronics specialist;
35.4 	(6) electrician;
35.5 	(7) electrician lead;
35.6 	(8) electrician master of record;
35.7 	(9) electrician supervisor;
35.8 	(10) food service supervisor;
35.9 	(11) food service worker;
35.10 	(12) general maintenance worker;
35.11 	(13) general maintenance worker lead;
35.12 	(14) general repair worker;
35.13 	(15) groundskeeper senior;
35.14 	(16) group supervisor;
35.15 	(17) group supervisor assistant;
35.16 	(18) human services support specialist;
35.17 	(19) institution maintenance lead worker;
35.18 	(20) laborer trades and equipment;
35.19 	(21) library technician;
35.20 	(22) library/information resource services specialist;
35.21 	(23) library/information resource services specialist supervisor;
35.22 	(24) licensed alcohol/drug counselor;
35.23 	(25) licensed practical nurse;
35.24 	(26) machinery repair worker;
35.25 	(27) maintenance machinist;
35.26 	(28) management analyst 3;
35.27 	(29) mason;
36.1 	(30) medical assistant, certified; and
36.2 	(31) music therapist.
36.3 		Subd. 5.Employment positions O to R. Employment positions with a title that begins 
36.4 	with the letters "O" to "R":
36.5 	(1) occupational therapist;
36.6 	(2) occupational therapist senior;
36.7 	(3) painter;
36.8 	(4) painter lead;
36.9 	(5) physical therapist;
36.10 	(6) plant maintenance engineer;
36.11 	(7) plant maintenance engineer lead;
36.12 	(8) plumber;
36.13 	(9) plumber chief;
36.14 	(10) plumber master in charge;
36.15 	(11) plumber supervisor;
36.16 	(12) psychiatric advanced practice registered nurse;
36.17 	(13) psychologist 1;
36.18 	(14) psychologist 2;
36.19 	(15) psychologist 3;
36.20 	(16) recreation program assistant;
36.21 	(17) recreation therapist;
36.22 	(18) recreation therapist coordinator;
36.23 	(19) recreation therapist senior;
36.24 	(20) refrigeration mechanic;
36.25 	(21) registered nurse;
36.26 	(22) registered nurse advanced practice;
36.27 	(23) registered nurse principal;
37.1 	(24) registered nurse senior;
37.2 	(25) rehabilitation counselor senior; and
37.3 	(26) residential program lead.
37.4 		Subd. 6.Employment positions S to W. Employment positions with a title that begins 
37.5 	with the letters "S" to "W":
37.6 	(1) security supervisor;
37.7 	(2) sentencing to service crew leader, institution community work crews;
37.8 	(3) skills development specialist;
37.9 	(4) social work specialist;
37.10 	(5) social work specialist senior-human services;
37.11 	(6) social worker senior;
37.12 	(7) special education program assistant;
37.13 	(8) special teacher: doctoral;
37.14 	(9) special teacher: master of arts/master of science/five-year+teachers license;
37.15 	(10) special teacher: five-year career technical credential;
37.16 	(11) special teacher: five-year career technical credential+10 credits;
37.17 	(12) special teacher: five-year career technical credential+20 credits;
37.18 	(13) special teacher: five-year career technical credential+30 credits;
37.19 	(14) special teacher: five-year career technical credential+40 credits;
37.20 	(15) special teacher: five-year career technical credential+50 credits;
37.21 	(16) special teacher: bachelor of arts/bachelor of science+teachers license;
37.22 	(17) special teacher: bachelor of arts/bachelor of science+teachers license+10 credits;
37.23 	(18) special teacher: bachelor of arts/bachelor of science+teachers license+20 credits;
37.24 	(19) special teacher: bachelor of arts/bachelor of science+teachers license+30 credits;
37.25 	(20) special teacher: bachelor of arts/bachelor of science+teachers license+40 credits;
37.26 	(21) special teacher: career technical credential;
37.27 	(22) special teacher: master of arts/master of science+teachers license+10 graduate 
37.28 	credits;
38.1 	(23) special teacher: master of arts/master of science+teachers license+20 graduate 
38.2 	credits;
38.3 	(24) special teacher: master of arts/master of science+teachers license+30 graduate 
38.4 	credits;
38.5 	(25) special teacher: no degree/teachers license;
38.6 	(26) speech pathology clinician;
38.7 	(27) sports medicine specialist;
38.8 	(28) work therapy assistant;
38.9 	(29) work therapy program coordinator; and
38.10 	(30) work therapy technician.
38.11 		Subd. 7.Former employees of Minnesota Specialty Health System-Cambridge. A 
38.12 	Department of Human Services or Direct Care and Treatment employee who was employed 
38.13 	at the Minnesota Specialty Health System-Cambridge immediately preceding the 2014 
38.14 	conversion to community-based homes and was in covered correctional service at the time 
38.15 	of the transition will continue to be covered by the correctional employees retirement plan 
38.16 	while employed in the direct care and treatment of patients by and without a break in service 
38.17 	with the Department of Human Services or Direct Care and Treatment.

38.18 	Sec. 7. [352.907] PLAN COVERAGE CHANGES.
38.19 		Subdivision 1.Correctional plan membership committee. (a) A correctional plan 
38.20 	membership committee is established to make determinations regarding changes to 
38.21 	employment positions and to coverage of employees.
38.22 	(b) The members of the correctional plan membership committee are:
38.23 	(1) the commissioner or the commissioner's designee;
38.24 	(2) the chief executive officer or the chief executive officer's designee;
38.25 	(3) the executive director or the executive director's designee;
38.26 	(4) the commissioner of management and budget or the commissioner's designee;
38.27 	(5) one representative from each employee organization that represents one or more 
38.28 	employees of the Department of Corrections or Direct Care and Treatment and who are 
38.29 	covered by the correctional employees retirement plan;
39.1 	(6) the human resources director or the director's designee from the Department of 
39.2 	Corrections; and
39.3 	(7) the human resources director or the director's designee from Direct Care and 
39.4 	Treatment.
39.5 	(c) A member of the correctional plan membership committee under paragraph (b), 
39.6 	clause (5), need not attend a meeting of the committee if none of the employees represented 
39.7 	by the employee organization will be impacted by any action to be taken by the committee 
39.8 	at the meeting.
39.9 	(d) If the executive director has received one or more requests for changes to the title 
39.10 	of an employment position, the addition or removal of an employment position from the 
39.11 	lists in section 352.905, or the commencement or cessation of coverage of an employee by 
39.12 	the correctional employees retirement plan, the executive director must convene the 
39.13 	correctional plan membership committee at least as frequently as once every calendar quarter. 
39.14 	If the executive director has not received any requests during a calendar quarter, the executive 
39.15 	director is not required to convene a meeting.
39.16 	(e) The human resources directors of the Department of Corrections and Direct Care 
39.17 	and Treatment must retain each request to the correctional plan membership committee and 
39.18 	the related documentation and final determination for an employee or employment position 
39.19 	in their respective department or agency.
39.20 		Subd. 2.Change in the title of an employment position. (a) No later than 60 days 
39.21 	before the effective date of a change in the title of an employment position listed in section 
39.22 	352.905, the Department of Corrections or Direct Care and Treatment, as applicable, must 
39.23 	submit a request to the commissioner of management and budget to review the title change 
39.24 	and determine whether the responsibilities of the employment position have changed. The 
39.25 	commissioner of management and budget must provide a response to the Department of 
39.26 	Corrections or Direct Care and Treatment, as applicable, by the effective date of the change.
39.27 	(b) If the commissioner of management and budget determines that the responsibilities 
39.28 	of the employment position have not changed or the responsibilities of the employment 
39.29 	position have changed but the changes do not affect the eligibility of the employment position 
39.30 	for coverage by the correctional employees retirement plan, the department or agency, as 
39.31 	applicable, must:
39.32 	(1) submit the title change to the executive director of the Legislative Commission on 
39.33 	Pensions and Retirement before the start of the next legislative session and request legislation 
39.34 	to replace the title in section 352.905 with the new title; and
40.1 	(2) notify each employee in the employment position no later than 30 days after the 
40.2 	effective date of the title change that the title change will not affect the continued coverage 
40.3 	of the employee by the correctional employees retirement plan and that the department or 
40.4 	agency, as applicable, has submitted a request to the legislature to change the title in section 
40.5 	352.905.
40.6 	(c) If the commissioner of management and budget determines that the responsibilities 
40.7 	of the employment position have changed and the changes result in the employment position 
40.8 	no longer being qualified for coverage by the correctional employees retirement plan, the 
40.9 	employer must:
40.10 	(1) submit a request to the correctional plan membership committee for confirmation 
40.11 	that the employment position must be removed from the lists of employment positions in 
40.12 	section 352.905; and
40.13 	(2) notify each employee in the employment position no later than 30 days after the 
40.14 	effective date of the title change that a determination was made by the commissioner of 
40.15 	management and budget that, because the responsibilities of the employment position have 
40.16 	changed, the employment position and all employees in the employment position are no 
40.17 	longer eligible for coverage by the correctional employees retirement plan subject to 
40.18 	confirmation by the correctional plan membership committee.
40.19 		Subd. 3.Transfers to new eligible facility or eligible program. (a) If the Department 
40.20 	of Corrections or Direct Care and Treatment adds a facility to the list of eligible facilities 
40.21 	under section 352.901, subdivision 8, or a program to the list of eligible programs under 
40.22 	section 352.901, subdivision 9, and the department or agency, as applicable, responsible 
40.23 	for the new facility or program transfers a state employee who was rendering covered 
40.24 	correctional service under section 352.905 to the new facility or program, the state employee 
40.25 	must continue to be covered by the correctional employees retirement plan if the employee 
40.26 	is employed in the same employment position at the new facility or in the new program.
40.27 	(b) The employee continues to be covered by the correctional employees retirement plan 
40.28 	unless the department or agency, as applicable, completes the process under subdivision 5 
40.29 	and the correctional plan membership committee has determined that the employee no 
40.30 	longer qualifies for coverage.
40.31 		Subd. 4.Procedures for making employment position changes. (a) The correctional 
40.32 	plan membership committee must consider requests to add or remove an employment 
40.33 	position listed in section 352.905, subdivisions 3 to 6, or to confirm a determination under 
40.34 	subdivision 2 by the commissioner of management and budget that, because the 
41.1 	responsibilities of the employment position have changed, the employment position and all 
41.2 	employees in the employment position are no longer eligible for coverage by the correctional 
41.3 	employees retirement plan.
41.4 	(b) An employee, employee organization, or employer may submit a request to the 
41.5 	correctional plan membership committee to add an employment position to section 352.905, 
41.6 	subdivisions 3 to 6. The correctional plan membership committee may determine that an 
41.7 	employment position must be added if the committee determines that at least one employee 
41.8 	in the employment position satisfies the direct contact requirement.
41.9 	(c) The correctional plan membership committee may, at the request of an employer, 
41.10 	determine under this subdivision or confirm a determination under subdivision 2, clause 
41.11 	(2), that an employment position must be removed from the lists in section 352.905, 
41.12 	subdivisions 3 to 6, if the committee determines that no employee in the employment 
41.13 	classification satisfies the direct contact requirement.
41.14 	(d) The correctional plan membership committee must include an effective date in any 
41.15 	determination to add or remove an employment position from the lists in section 352.905, 
41.16 	subdivisions 3 to 6. The effective date may be retroactive for a determination to add an 
41.17 	employment position.
41.18 	(e) If the correctional plan membership committee determines that an employment 
41.19 	position must be added to or removed from the lists of employment positions in section 
41.20 	352.905, subdivisions 3 to 6, the department or agency affected by the determination must 
41.21 	submit the employment position change to the executive director of the Legislative 
41.22 	Commission on Pensions and Retirement before the start of the next legislative session and 
41.23 	request legislation to make the change.
41.24 	(f) After making a determination that an employment position must be added to or 
41.25 	removed from the lists of employment positions in section 352.905, subdivisions 3 to 6, the 
41.26 	correctional plan membership committee must designate a member of the committee to 
41.27 	communicate the committee's determination to all affected employees no later than ten days 
41.28 	after the date of the meeting at which the determination was made and inform the employees 
41.29 	of the right to appeal the determination under subdivision 6.
41.30 		Subd. 5.Procedures for adding or ceasing coverage for employees. (a) The correctional 
41.31 	plan membership committee must consider requests to provide coverage by the correctional 
41.32 	employees retirement plan to an employee in an employment position listed in section 
41.33 	352.905, subdivisions 3 to 6, or to cease coverage of an employee.
42.1 	(b) An employee, an employee's employee organization, or an employee's manager may 
42.2 	submit a request to the correctional plan membership committee to provide coverage to an 
42.3 	employee in an employment position listed in section 352.905, subdivisions 3 to 6. The 
42.4 	request may include a description of the extent of the physical hazard that the employee is 
42.5 	routinely subjected to in the course of employment, the extent of intervention routinely 
42.6 	expected of the employee in the event of a facility incident, and the extent the employee is 
42.7 	routinely involved in the rehabilitation, treatment, custody, or supervision of patients, clients, 
42.8 	or incarcerated persons. The request must include:
42.9 	(1) a signed and dated position description for the employee's position; and
42.10 	(2) a statement signed by the employer's human resources director or the director's 
42.11 	designee and the commissioner or the chief executive officer, as applicable, that the employee 
42.12 	satisfies the direct contact requirement.
42.13 	(c) An employer may submit a request to the correctional plan membership committee 
42.14 	to cease coverage of an employee. The request must include:
42.15 	(1) a signed and dated position description for the employee's position; and
42.16 	(2) a statement signed by the employee's employer that the employee no longer satisfies 
42.17 	the direct contact requirement.
42.18 	(d) The correctional plan membership committee must include an effective date in any 
42.19 	determination that an employee must begin to receive coverage by the correctional employees 
42.20 	retirement plan or that coverage must cease. The effective date may be retroactive to the 
42.21 	date as of which the coverage requirements were first satisfied or were no longer met.
42.22 	(e) After making a determination of coverage or no coverage for an employee, the 
42.23 	correctional plan membership committee must designate a member of the committee to 
42.24 	communicate the committee's determination to the affected employee no later than ten days 
42.25 	after the date of the meeting at which the determination was made and inform the employee 
42.26 	of the right to appeal the determination under subdivision 6.
42.27 		Subd. 6.Right to appeal. (a) No later than 30 days after receiving a determination under 
42.28 	subdivision 4 or 5, the affected employee may appeal a determination of the correctional 
42.29 	plan membership committee by filing an appeal with the human resources manager of the 
42.30 	department or agency, as applicable, in which the employee is employed. The appeal must 
42.31 	include:
42.32 	(1) the reasons for the appeal and rationale for a determination that the employee be 
42.33 	covered by the correctional employees retirement plan; and
43.1 	(2) new or additional information, if any, not previously submitted or considered by the 
43.2 	correctional plan membership committee, including a new or revised position description 
43.3 	and samples of work product.
43.4 	(b) The appeal must be decided by the commissioner of corrections if the employee is 
43.5 	an employee of the Department of Corrections or by the chief executive officer of Direct 
43.6 	Care and Treatment if the employee is an employee of Direct Care and Treatment. The 
43.7 	decision of the commissioner or chief executive officer, as applicable, is final.
43.8 	(c) A determination not timely appealed under paragraph (a) is not entitled to further 
43.9 	administrative or judicial review. A determination under subdivision 4 or 5 or an appeal 
43.10 	decided under paragraph (b) may not be appealed under section 356.96.

43.11 	Sec. 8. [352.908] CORRECTION OF PLAN COVERAGE ERRORS.
43.12 	Section 356.637 applies if an employee is erroneously covered by:
43.13 	(1) the correctional employees retirement plan when the employee should have been 
43.14 	covered by one of the other plans specified in section 356.637; or
43.15 	(2) a plan specified in section 356.637, other than the correctional employees retirement 
43.16 	plan, when the employee should have been covered by the correctional employees retirement 
43.17 	plan.

43.18 	Sec. 9. Minnesota Statutes 2024, section 352.93, subdivision 1, is amended to read:
43.19 		Subdivision 1.Basis of annuity; when to apply. After separation from state service, 
43.20 	an employee covered under section 352.91352.905 who has reached age 55 years and is 
43.21 	vested under section 352.925, is entitled upon application to a retirement annuity under this 
43.22 	section, based only on covered correctional employees' service. Application may be made 
43.23 	no earlier than 60 days before the date the employee is eligible to retire by reason of both 
43.24 	age and service requirements.

43.25 	Sec. 10. Minnesota Statutes 2024, section 352.955, subdivision 1, is amended to read:
43.26 		Subdivision 1.Election to transfer prior MSRS-general service credit. (a) An eligible 
43.27 	employee described in paragraph (b) may elect to transfer service credit in the general state 
43.28 	employees retirement plan of the Minnesota State Retirement System to the correctional 
43.29 	state employees retirement plan for eligible prior correctional employment.
43.30 	(b) An eligible employee is a person who is covered by legislation implementing the 
43.31 	recommendations under section 352.91, subdivision 4a the correctional plan membership 
44.1 	committee determines is entitled to coverage by the correctional employees retirement plan 
44.2 	under section 352.907.
44.3 	(c) Eligible prior correctional employment is employment covered by the general state 
44.4 	employees retirement plan of the Minnesota State Retirement System, is continuous service, 
44.5 	and is certified by the commissioner of corrections and the Direct Care and Treatment 
44.6 	executive board, whichever applies, and by the commissioner of management and budget 
44.7 	to the executive director of the Minnesota State Retirement System as service that would 
44.8 	qualify for correctional state employees retirement plan coverage under section 352.91
44.9 	352.905, if the service had been rendered after the date of coverage transfer.
44.10 	(d) The election to transfer past service credit under this section must be made in writing 
44.11 	by the applicable person on a form prescribed by the executive director of the Minnesota 
44.12 	State Retirement System and must be filed with the executive director of the Minnesota 
44.13 	State Retirement System on or before the one year anniversary of the coverage transfer or 
44.14 	the date of the eligible employee's termination of state employment, whichever is earlier.

44.15 	Sec. 11. REPEALER.
 44.16 	Minnesota Statutes 2024, section 352.91, subdivisions 1, 2, 2a, 3c, 3d, 3e, 3f, 3g, 3h, 
44.17 	3i, 3j, 4a, 4b, 4c, and 6, are repealed.

44.18 	Sec. 12. EFFECTIVE DATE.
 44.19 	Sections 1 to 11 are effective January 1, 2026.

44.20 	ARTICLE 6
44.21 	HIGHER EDUCATION SUPPLEMENTAL RETIREMENT PLAN

44.22 	Section 1. Minnesota Statutes 2024, section 356.24, subdivision 1, is amended to read:
44.23 		Subdivision 1.Restriction; exceptions. It is unlawful for a school district or other 
44.24 	governmental subdivision or state agency to levy taxes for or to contribute public funds to 
44.25 	a supplemental pension or deferred compensation plan that is established, maintained, and 
44.26 	operated in addition to a primary pension program for the benefit of the governmental 
44.27 	subdivision employees other than:
44.28 	(1) to a supplemental pension plan that was established, maintained, and operated before 
44.29 	May 6, 1971;
44.30 	(2) to a plan that provides solely for group health, hospital, disability, or death benefits;
45.1 	(3) to the individual retirement account plan established by chapter 354B;
45.2 	(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or 
45.3 	terminating employee;
45.4 	(5) to a deferred compensation plan defined in subdivision 3;
45.5 	(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges 
45.6 	and Universities and not covered by clause (5), to the supplemental retirement plan under 
45.7 	chapter 354C, if the supplemental plan coverage is provided for in a personnel policy or in 
45.8 	the collective bargaining agreement of the public employer with the exclusive representative 
45.9 	of the covered employees in an appropriate unit, in an amount matching employee 
45.10 	contributions on a dollar for dollar basis, but not to exceed an employer contribution of 
45.11 	$2,700 $4,300 a year for each employee;
45.12 	(7) to a supplemental plan or to a governmental trust to save for postretirement health 
45.13 	care expenses qualified for tax-preferred treatment under the Internal Revenue Code, if the 
45.14 	supplemental plan coverage is provided for in a personnel policy or in the collective 
45.15 	bargaining agreement of a public employer with the exclusive representative of the covered 
45.16 	employees in an appropriate unit;
45.17 	(8) to the laborers national industrial pension fund or to a laborers local pension fund 
45.18 	for the employees of a governmental subdivision who are covered by a collective bargaining 
45.19 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
45.20 	rate, but not to exceed an employer contribution of $10,000 per year per employee;
45.21 	(9) to the plumbers and pipefitters national pension fund or to a plumbers and pipefitters 
45.22 	local pension fund for the employees of a governmental subdivision who are covered by a 
45.23 	collective bargaining agreement that provides for coverage by that fund and that sets forth 
45.24 	a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per 
45.25 	employee;
45.26 	(10) to the international union of operating engineers pension fund for the employees 
45.27 	of a governmental subdivision who are covered by a collective bargaining agreement that 
45.28 	provides for coverage by that fund and that sets forth a fund contribution rate, but not to 
45.29 	exceed an employer contribution of $10,000 per year per employee;
45.30 	(11) to the International Association of Machinists national pension fund for the 
45.31 	employees of a governmental subdivision who are covered by a collective bargaining 
45.32 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
45.33 	rate, but not to exceed an employer contribution of $5,000 per year per employee;
46.1 	(12) for employees of United Hospital District, Blue Earth, to the state of Minnesota 
46.2 	deferred compensation program, if the employee makes a contribution, in an amount that 
46.3 	does not exceed the total percentage of covered salary under section 353.27, subdivisions 
46.4 	3 and 3a;
46.5 	(13) to the alternative retirement plans established by the Hennepin County Medical 
46.6 	Center under section 383B.914, subdivision 5;
46.7 	(14) to the International Brotherhood of Teamsters Central States pension plan for 
46.8 	fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who 
46.9 	are members of the International Brotherhood of Teamsters Local 638 by virtue of that 
46.10 	employment; or
46.11 	(15) to a supplemental plan organized and operated under the Internal Revenue Code, 
46.12 	as amended, that is wholly and solely funded by the employee's accumulated sick leave, 
46.13 	accumulated vacation leave, and accumulated severance pay.

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

46.15 	ARTICLE 7
46.16 	STATE AUDITOR'S FIRE RELIEF ASSOCIATION WORKING GROUP

46.17 	Section 1. Minnesota Statutes 2024, section 424A.014, subdivision 2, is amended to read:
46.18 		Subd. 2.Financial statement. (a) The board of trustees of each firefighters relief 
46.19 	association that is not required to and does not choose to file a financial report and audit 
46.20 	under subdivision 1 must prepare a detailed statement of the financial affairs for the preceding 
46.21 	fiscal year of the relief association's special and general funds in the style and form prescribed 
46.22 	by the state auditor. The detailed statement must show:
46.23 	(1) the sources and amounts of all money received;
46.24 	(2) all disbursements, accounts payable, and accounts receivable;
46.25 	(3) the amount of money remaining in the treasury;
46.26 	(4) total assets, including a listing of all investments;
46.27 	(5) the accrued liabilities; and
46.28 	(6) all other items necessary to show accurately the revenues and expenditures and 
46.29 	financial position of the relief association.
46.30 	(b) The detailed financial statement of the special and general funds required under 
46.31 	paragraph (a) must be certified by a certified public accountant or by the state auditor in 
47.1 	accordance with agreed-upon procedures and forms prescribed by the state auditor. The 
47.2 	accountant must have at least five years of public accounting, auditing, or similar experience 
47.3 	and must not be an active, inactive, or retired member of the relief association or the fire 
47.4 	department.
47.5 	(c) The detailed financial statement required under paragraph (a) must be countersigned 
47.6 	by:
47.7 	(1) the municipal clerk or clerk-treasurer of the municipality;
47.8 	(2) where applicable, the municipal clerk or clerk-treasurer of the largest municipality 
47.9 	in population that contracts with the independent nonprofit firefighting corporation if the 
47.10 	relief association is a subsidiary of an independent nonprofit firefighting corporation, and 
47.11 	by the secretary of the independent nonprofit firefighting corporation; or
47.12 	(3) the chief financial official of the county in which the firefighters relief association 
47.13 	is located or primarily located if the relief association is associated with a fire department 
47.14 	that is not located in or associated with an organized municipality.
47.15 	(d) The firefighters relief association board must submit a copy of the detailed financial 
47.16 	statement required under paragraph (a) that has been certified by the governing body of the 
47.17 	municipality to the state auditor on or before March 31 June 30 after the close of the fiscal 
47.18 	year.
47.19 	(e) A certified public accountant or auditor who performs the agreed-upon procedures 
47.20 	under paragraph (b) is subject to the reporting requirement of section 6.67.

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

47.22 	Sec. 2. Minnesota Statutes 2024, section 424A.015, subdivision 4, is amended to read:
47.23 		Subd. 4.Transfer to individual retirement account Right to elect a direct rollover. A 
47.24 	relief association that is a qualified pension plan under section 401(a) of the Internal Revenue 
47.25 	Code, as amended, and that provides a single payment service pension, at the written request 
47.26 	of the applicable retiring member or, following the death of the active member, at the written 
47.27 	request of the deceased member's surviving spouse, may directly transfer on an 
47.28 	institution-to-institution basis the eligible member's lump-sum pension or the survivor 
47.29 	benefit attributable to the member, whichever applies, to the requesting person's individual 
47.30 	retirement account under section 408(a) of the Internal Revenue Code, as amended. A relief 
47.31 	association must permit a member, a surviving spouse, or another distributee as defined in 
47.32 	section 356.633, subdivision 1, paragraph (b), to elect a direct rollover of any distribution 
48.1 	that is an eligible rollover distribution as defined in section 356.633, subdivision 1, paragraph 
48.2 	(d), subject to the terms and conditions of section 356.633.

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

48.4 	Sec. 3. Minnesota Statutes 2024, section 424A.016, subdivision 2, is amended to read:
48.5 		Subd. 2.Defined contribution service pension eligibility. (a) A relief association, 
48.6 	when its articles of incorporation or bylaws so provide, may pay as soon as practicable out 
48.7 	of the assets of its special fund a defined contribution service pension to each of its members 
48.8 	who:
48.9 	(1) separates from active service with the fire department;
48.10 	(2) reaches age 50 submits a valid written application for the distribution;
48.11 	(3) completes at least five years of active service as an active member of the fire 
48.12 	department to which the relief association is associated;
48.13 	(4) completes at least five years of active membership with the relief association before 
48.14 	separation from active service; and
48.15 	(5) complies with any additional conditions as to age, service, and membership that are 
48.16 	prescribed by the bylaws of the relief association.
48.17 	(b) In the case of a member who has completed at least five years of active service as 
48.18 	an active member of the fire department to which the relief association is associated on the 
48.19 	date that the relief association is established and incorporated, the requirement that the 
48.20 	member complete at least five years of active membership with the relief association before 
48.21 	separation from active service may be waived by the board of trustees of the relief association 
48.22 	if the member completes at least five years of inactive membership with the relief association 
48.23 	before the date of the payment of the service pension. During the period of inactive 
48.24 	membership, the member is not entitled to receive any disability benefit coverage, is not 
48.25 	entitled to receive additional individual account allocation of fire state aid or municipal 
48.26 	contribution toward a service pension, and is considered to have the status of a person 
48.27 	entitled to a deferred service pension.
48.28 	(c) The service pension earned by a firefighter under this chapter and the articles of 
48.29 	incorporation and bylaws of the relief association may be paid whether or not the municipality 
48.30 	or independent nonprofit firefighting corporation to which the relief association is associated 
48.31 	qualifies for the receipt of fire state aid under chapter 477B.

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

49.1 	Sec. 4. Minnesota Statutes 2024, section 424A.016, subdivision 6, is amended to read:
49.2 		Subd. 6.Deferred service pensions. (a) A "deferred member" means a member of a 
49.3 	relief association who has separated from active service and membership and has completed 
49.4 	the minimum service and membership requirements in subdivision 2. The requirement that 
49.5 	a member separate from active service and membership is waived for personsany person 
49.6 	who havehas discontinued their volunteer firefighter and paid on-call firefighter duties and 
49.7 	who areis employed on a part-time or full-time basis under section 424A.015, subdivision 
49.8 	1.
49.9 	(b) A deferred member is entitled to receive a deferred service pension whenas soon as 
49.10 	practicable after the member reaches at least age 50, or at least the minimum age specified 
49.11 	in the bylaws governing the relief association if that age is greater than age 50, and makes
49.12 	submits a valid written application for the distribution and complies with any conditions as 
49.13 	to age prescribed by the relief association's bylaws.
49.14 	(c) A defined contribution relief association must credit interest or additional investment 
49.15 	performance on the deferred lump-sum service pension during the period of deferral for all 
49.16 	deferred members on or after January 1, 2021. A defined contribution relief association 
49.17 	may specify in its bylaws the method by which it will credit interest or additional investment 
49.18 	performance to the accounts of deferred members. Such method shall be limited to one of 
49.19 	the three methods provided in this paragraph. In the event the bylaws do not specify a 
49.20 	method, the interest or additional investment performance must be credited using the method 
49.21 	defined in clause (3). The permissible methods are:
49.22 	(1) at the investment performance rate actually earned on that portion of the assets if the 
49.23 	deferred benefit amount is invested by the relief association in a separate account established 
49.24 	and maintained by the relief association;
49.25 	(2) at the investment performance rate actually earned on that portion of the assets if the 
49.26 	deferred benefit amount is invested in a separate investment vehicle held by the relief 
49.27 	association; or
49.28 	(3) at the investment return on the assets of the special fund of the defined contribution 
49.29 	relief association in proportion to the share of the assets of the special fund to the credit of 
49.30 	each individual deferred member account.
49.31 	(d) Notwithstanding the requirements of section 424A.015, subdivision 6, bylaw 
49.32 	amendments made in accordance with paragraph (c) on or before January 1, 2022, shall 
49.33 	apply to members already in deferred status as of January 1, 2021.
50.1 	(e) Unless the bylaws provide differently, interest or additional investment performance 
50.2 	must be allocated to each deferred member account beginning on the date that the member 
50.3 	separates from active service and membership and ending on the last date that the deferred 
50.4 	member account is valued before the final distribution of the deferred service pension.
50.5 	(f) Notwithstanding the requirements of section 424A.015, subdivision 6, a relief 
50.6 	association that amends its bylaws to lower the required minimum retirement age may 
50.7 	specify in the bylaws amendment that the lower minimum retirement age applies to members 
50.8 	who separated from active service and membership prior to the effective date of the bylaws 
50.9 	amendment.

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

50.11 	Sec. 5. Minnesota Statutes 2024, section 424A.05, subdivision 3, is amended to read:
50.12 		Subd. 3.Authorized disbursements from special fund. (a) Disbursements from the 
50.13 	special fund may not be made for any purpose other than one of the following:
50.14 	(1) for the payment or direct rollover under section 356.633 of service pensions to retired
50.15 	members of the relief association if authorized and paid under law and the bylaws governing 
50.16 	the relief association;
50.17 	(2) for the purchase of an annuity for the applicable person under section 424A.015, 
50.18 	subdivision 3, for the transfer of service pension or benefit amounts to the applicable person's 
50.19 	individual retirement account under section 424A.015, subdivision 4, or to the applicable 
50.20 	person's account in the Minnesota deferred compensation plan under section 424A.015, 
50.21 	subdivision 5;
50.22 	(3) for the payment or direct rollover under section 356.633 of temporary or permanent 
50.23 	disability benefits to disabled members of the relief association if authorized and paid under 
50.24 	law and specified in amount in the bylaws governing the relief association;
50.25 	(4) for the payment or direct rollover under section 356.633 of survivor benefits or for 
50.26 	the payment of a death benefit to the estate of the deceased active or deferred firefighter, if 
50.27 	authorized and paid under law and specified in amount in the bylaws governing the relief 
50.28 	association;
50.29 	(5) for the payment of the fees, dues and assessments to the Minnesota State Fire 
50.30 	Department Association and to the Minnesota State Fire Chiefs Association in order to 
50.31 	entitle relief association members to membership in and the benefits of these associations 
50.32 	or organizations;
51.1 	(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit 
51.2 	Association, or an insurance company licensed by the state of Minnesota offering casualty 
51.3 	insurance, in order to entitle relief association members to membership in and the benefits 
51.4 	of the association or organization;
51.5 	(7) for the payment of administrative expenses of the relief association as authorized 
51.6 	under subdivision 3b; and
51.7 	(8) for the payment or direct rollover under section 356.633 of a service pension to the 
51.8 	former spouse of a member or former member of a relief association, if the former spouse 
51.9 	is an alternate payee designated in a qualified domestic relations order under subdivision 
51.10 	5.
51.11 	(b) Checks or authorizations for electronic fund transfers for disbursements authorized 
51.12 	by this section must be signed by the relief association treasurer and at least one other elected 
51.13 	trustee who has been designated by the board of trustees to sign the checks or authorizations. 
51.14 	A relief association may make disbursements authorized by this subdivision by electronic 
51.15 	fund transfers only if the specific method of payment and internal control policies and 
51.16 	procedures regarding the method are approved by the board of trustees.

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

51.18 	Sec. 6. Minnesota Statutes 2024, section 424A.06, subdivision 2, is amended to read:
51.19 		Subd. 2.General fund assets and revenues. (a) The general fund, if established, must 
51.20 	be credited with the following:
51.21 	(1) all money received from dues other than dues payable as contributions under the 
51.22 	bylaws of the relief association to the special fund;
51.23 	(2) all money received from fines;
51.24 	(3) all money received from initiation fees;
51.25 	(4) all money received as entertainment revenues; and
51.26 	(5) any money or property donated, given, granted or devised by any person, either for 
51.27 	the support of the general fund of the relief association or for unspecified purposes.
51.28 	(b) The treasurer of the relief association is the custodian of the assets of the general 
51.29 	fund and must be the recipient on behalf of the general fund of all revenues payable to the 
51.30 	general fund. The treasurer shall maintain adequate records documenting any transaction 
51.31 	involving the assets or the revenues of the general fund. These records must be open for 
51.32 	inspection by any member of the relief association at reasonable times and places.

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

52.2 	Sec. 7. Minnesota Statutes 2024, section 424A.092, subdivision 2, is amended to read:
52.3 		Subd. 2.Determination of accrued liability. (a) Beginning with the calculation 
52.4 	performed in 2021 for the 2022 calendar year, Each firefighters relief association which 
52.5 	pays a lump-sum service pension shall determine the accrued liability of the special fund 
52.6 	of the firefighters relief association relative to each active member of the relief association, 
52.7 	calculated using the applicable appendix to the standards for actuarial work established by 
52.8 	the Legislative Commission on Pensions and Retirement under section 3.85, subdivision 
52.9 	10.
52.10 	(b) For calendar years before 2022, each firefighters relief association shall determine 
52.11 	the accrued liability of the special fund of the firefighters relief association relative to each 
52.12 	active member of the relief association, calculated individually using the following table:

52.13
52.14	Cumulative
Year
	Accrued
Liability
		
52.15	............
	............
		
52.16	1
	$
	60
		
52.17	2
		124
		
52.18	3
		190
		
52.19	4
		260
		
52.20	5
		334
		
52.21	6
		410
		
52.22	7
		492
		
52.23	8
		576
		
52.24	9
		666
		
52.25	10
		760
		
52.26	11
		858
		
52.27	12
		962
		
52.28	13
		1070
		
52.29	14
		1184
		
52.30	15
		1304
		
52.31	16
		1428
		
52.32	17
		1560
		
52.33	18
		1698
		
52.34	19
		1844
		
52.35	20
		2000
		
52.36	21
	and thereafter
	100
	additional per year
	
53.1 	As set forth in the table the accrued liability for each member of the relief association 
53.2 	corresponds to the cumulative years of active service to the credit of the member. The 
53.3 	accrued liability of the special fund for each active member is determined by multiplying 
53.4 	the accrued liability from the chart by the ratio of the lump-sum service pension amount 
53.5 	currently provided for in the bylaws of the relief association to a service pension of $100 
53.6 	per year of service.
53.7 	(c)(b) If a member has fractional service as of December 31, the figure for service credit 
53.8 	to be used for the determination of accrued liability pursuant to this section shall be rounded 
53.9 	to the nearest full year of service credit. The total accrued liability of the special fund as of 
53.10 	December 31 shall be the sum of the accrued liability attributable to each active member 
53.11 	of the relief association.
53.12 	(d)(c) To the extent that the state auditor considers it to be necessary or practical, the 
53.13 	state auditor may specify and issue procedures, forms, or mathematical tables for use in 
53.14 	performing the calculations of the accrued liability for deferred members pursuant to this 
53.15 	subdivision.

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

53.17 	Sec. 8. Minnesota Statutes 2024, section 424A.092, subdivision 3, is amended to read:
53.18 		Subd. 3.Financial requirements of relief association; minimum obligation of 
53.19 	municipality. (a) During the month of July, the officers of the relief association shall 
53.20 	determine the overall funding balance of the special fund for the current calendar year, the 
53.21 	financial requirements of the special fund for the following calendar year and the minimum 
53.22 	obligation of the municipality with respect to the special fund for the following calendar 
53.23 	year in accordance with the requirements of this subdivision.
53.24 	(b) The overall funding balance of the special fund for the current calendar year must 
53.25 	be determined in the following manner:
53.26 	(1) The total accrued liability of the special fund for all active and deferred members of 
53.27 	the relief association as of December 31 of the current year must be calculated under 
53.28 	subdivisions 2 and 2a, if applicable.
53.29 	(2) The total present assets of the special fund projected to December 31 of the current 
53.30 	year, including receipts by and disbursements from the special fund anticipated to occur on 
53.31 	or before December 31, must be calculated. To the extent possible, for those assets for which 
53.32 	a market value is readily ascertainable, the current market value as of the date of the 
53.33 	calculation for those assets must be utilized in making this calculation. For any asset for 
54.1 	which no market value is readily ascertainable, the cost value or the book value, whichever 
54.2 	is applicable, must be utilized in making this calculation.
54.3 	(3) The amount of the total present assets of the special fund calculated under clause (2) 
54.4 	must be subtracted from the amount of the total accrued liability of the special fund calculated 
54.5 	under clause (1). If the amount of total present assets exceeds the amount of the total accrued 
54.6 	liability, then the special fund is considered to have a surplus over full funding. If the amount 
54.7 	of the total present assets is less than the amount of the total accrued liability, then the 
54.8 	special fund is considered to have a deficit from full funding. If the amount of total present 
54.9 	assets is equal to the amount of the total accrued liability, then the special fund is considered 
54.10 	to be fully funded.
54.11 	(c) The financial requirements of the special fund for the following calendar year must 
54.12 	be determined in the following manner:
54.13 	(1) The total accrued liability of the special fund for all active and deferred members of 
54.14 	the relief association as of December 31 of the calendar year next following the current 
54.15 	calendar year must be calculated under subdivisions 2 and 2a, if applicable.
54.16 	(2) The increase in the total accrued liability of the special fund for the following calendar 
54.17 	year over the total accrued liability of the special fund for the current year must be calculated.
54.18 	(3) The amount of anticipated future administrative expenses of the special fund must 
54.19 	be calculated by multiplying the dollar amount of the administrative expenses of the special 
54.20 	fund for the most recent prior calendar year by the factor of 1.035.
54.21 	(4) If the special fund is fully funded, the financial requirements of the special fund for 
54.22 	the following calendar year are the total of the amounts calculated under clauses (2) and 
54.23 	(3).
54.24 	(5) If the special fund has a deficit from full funding, the financial requirements of the 
54.25 	special fund for the following calendar year are the financial requirements of the special 
54.26 	fund calculated as though the special fund were fully funded under clause (4) plus an amount 
54.27 	equal to one-tenth of the original amount of the deficit from full funding of the special fund 
54.28 	as determined under clause (2) resulting either from an increase in the amount of the service 
54.29 	pension occurring in the last ten years or from a net annual investment loss occurring during 
54.30 	the last ten years until each increase in the deficit from full funding is fully retired. The 
54.31 	annual amortization contribution under this clause may not exceed the amount of the deficit 
54.32 	from full funding.
55.1 	(6) If the special fund has a surplus over full funding, the financial requirements of the 
55.2 	special fund for the following calendar year are the financial requirements of the special 
55.3 	fund calculated as though the special fund were fully funded under clause (4) reduced by 
55.4 	an amount equal to one-tenth of the amount of the surplus over full funding of the special 
55.5 	fund.
55.6 	(d) The minimum obligation of the municipality with respect to the special fund is the 
55.7 	financial requirements of the special fund reduced by the amount of any fire state aid and 
55.8 	police and firefighter retirement supplemental state aid payable under chapter 477B and 
55.9 	section 423A.022 reasonably anticipated to be received by the municipality for transmittal 
55.10 	to the special fund during the following calendar year, and an amount of interest on the 
55.11 	assets of the special fund projected to the beginning of the following calendar year calculated 
55.12 	at the rate of five percent per annum, and the amount of any contributions to the special 
55.13 	fund required by the relief association bylaws from the active members of the relief 
55.14 	association reasonably anticipated to be received during the following calendar year. A 
55.15 	reasonable amount of anticipated fire state aid is an amount that does not exceed the fire 
55.16 	state aid actually received in the prior year multiplied by the factor 1.035.

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

55.18 	Sec. 9. Minnesota Statutes 2024, section 424A.092, subdivision 4, is amended to read:
55.19 		Subd. 4.Certification of financial requirements and minimum municipal obligation; 
55.20 	levy. (a) The officers of the relief association shall certify the financial requirements of the 
55.21 	special fund of the relief association and the minimum obligation of the municipality with 
55.22 	respect to the special fund of the relief association as determined under subdivision 3 on or 
55.23 	before August 1 of each year. The certification must be made to the entity that is responsible 
55.24 	for satisfying the minimum obligation with respect to the special fund of the relief association. 
55.25 	If the responsible entity is a joint powers entity, the certification must be made in the manner 
55.26 	specified in the joint powers agreement, or if the joint powers agreement is silent on this 
55.27 	point, the certification must be made to the chair of the joint powers board.
55.28 	(b) The financial requirements of the relief association and the minimum municipal 
55.29 	obligation must be included in the financial report or financial statement under section 
55.30 	424A.014. The schedule forms related to the determination of the financial requirements 
55.31 	must be filed annually with the state auditor by March 31, annually, if the relief association 
55.32 	is required to file a financial statement under section 424A.014, subdivision 2, or by June 
55.33 	30, annually, if the relief association is required to file a financial report and audit under 
55.34 	section 424A.014, subdivision 1.
56.1 	(c) The municipality shall provide for at least the minimum obligation of the municipality 
56.2 	with respect to the special fund of the relief association by tax levy or from any other source 
56.3 	of public revenue.
56.4 	(d) The municipality may levy taxes for the payment of the minimum municipal obligation 
56.5 	without any limitation as to rate or amount and irrespective of any limitations imposed by 
56.6 	other provisions of law upon the rate or amount of taxation until the balance of the special 
56.7 	fund or any fund of the relief association has attained a specified level. In addition, any 
56.8 	taxes levied under this section must not cause the amount or rate of any other taxes levied 
56.9 	in that year or to be levied in a subsequent year by the municipality which are subject to a 
56.10 	limitation as to rate or amount to be reduced.
56.11 	(e) If the municipality does not include the full amount of the minimum municipal 
56.12 	obligations in its levy for any year, the officers of the relief association shall certify that 
56.13 	amount to the county auditor, who shall spread a levy in the amount of the certified minimum 
56.14 	municipal obligation on the taxable property of the municipality.
56.15 	(f) If the state auditor determines that a municipal contribution actually made in a plan 
56.16 	year was insufficient under section 424A.091, subdivision 3, paragraph (c), clause (5), the 
56.17 	state auditor may request a copy of the certifications under this subdivision from the relief 
56.18 	association or from the city. The relief association or the city, whichever applies, must 
56.19 	provide the certifications within 14 days of the date of the request from the state auditor.

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

56.21 	Sec. 10. Minnesota Statutes 2024, section 424A.093, subdivision 5, is amended to read:
56.22 		Subd. 5.Minimum municipal obligation. (a) The officers of the relief association shall 
56.23 	determine the minimum obligation of the municipality with respect to the special fund of 
56.24 	the relief association for the following calendar year on or before August 1 of each year in 
56.25 	accordance with the requirements of this subdivision.
56.26 	(b) The minimum obligation of the municipality with respect to the special fund is an 
56.27 	amount equal to the financial requirements of the special fund of the relief association 
56.28 	determined under subdivision 4, reduced by the estimated amount of any fire state aid and 
56.29 	police and firefighter retirement supplemental state aid payable under chapter 477B and 
56.30 	section 423A.022 reasonably anticipated to be received by the municipality for transmittal 
56.31 	to the special fund of the relief association during the following year and the amount of any 
56.32 	anticipated contributions to the special fund required by the relief association bylaws from 
56.33 	the active members of the relief association reasonably anticipated to be received during 
57.1 	the following calendar year. A reasonable amount of anticipated fire state aid is an amount 
57.2 	that does not exceed the fire state aid actually received in the prior year multiplied by the 
57.3 	factor 1.035.
57.4 	(c) The officers of the relief association shall certify the financial requirements of the 
57.5 	special fund of the relief association and the minimum obligation of the municipality with 
57.6 	respect to the special fund of the relief association as determined under subdivision 4 and 
57.7 	this subdivision by August 1 of each year. The certification must be made to the entity that 
57.8 	is responsible for satisfying the minimum obligation with respect to the special fund of the 
57.9 	relief association. If the responsible entity is a joint powers entity, the certification must be 
57.10 	made in the manner specified in the joint powers agreement, or if the joint powers agreement 
57.11 	is silent on this point, the certification must be made to the chair of the joint powers board.
57.12 	(d) The financial requirements of the relief association and the minimum municipal 
57.13 	obligation must be included in the financial report or financial statement under section 
57.14 	424A.014.
57.15 	(e) The municipality shall provide for at least the minimum obligation of the municipality 
57.16 	with respect to the special fund of the relief association by tax levy or from any other source 
57.17 	of public revenue. The municipality may levy taxes for the payment of the minimum 
57.18 	municipal obligation without any limitation as to rate or amount and irrespective of any 
57.19 	limitations imposed by other provisions of law or charter upon the rate or amount of taxation 
57.20 	until the balance of the special fund or any fund of the relief association has attained a 
57.21 	specified level. In addition, any taxes levied under this section must not cause the amount 
57.22 	or rate of any other taxes levied in that year or to be levied in a subsequent year by the 
57.23 	municipality which are subject to a limitation as to rate or amount to be reduced.
57.24 	(f) If the municipality does not include the full amount of the minimum municipal 
57.25 	obligation in its levy for any year, the officers of the relief association shall certify that 
57.26 	amount to the county auditor, who shall spread a levy in the amount of the minimum 
57.27 	municipal obligation on the taxable property of the municipality.
57.28 	(g) If the state auditor determines that a municipal contribution actually made in a plan 
57.29 	year was insufficient under section 424A.091, subdivision 3, paragraph (c), clause (5), the 
57.30 	state auditor may request from the relief association or from the city a copy of the 
57.31 	certifications under this subdivision. The relief association or the city, whichever applies, 
57.32 	must provide the certifications within 14 days of the date of the request from the state auditor.

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

58.1 	Sec. 11. REPEALER.
 58.2 	Minnesota Statutes 2024, section 424A.015, subdivision 5, is repealed.

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

58.4 	ARTICLE 8
58.5 	FIREFIGHTERS RELIEF ASSOCIATIONS

58.6 	Section 1. Minnesota Statutes 2024, section 424A.02, subdivision 3, is amended to read:
58.7 		Subd. 3.Determining maximum pension benefit. (a) Except as provided in paragraph 
58.8 	(b) and section 424B.22, subdivision 4, a defined benefit relief association may not set in 
58.9 	its bylaws a service pension amount above the following maximum amounts:
58.10 	(1) for a defined benefit relief association in which the governing bylaws provide for a 
58.11 	monthly service pension, the maximum monthly service pension amount per month for each 
58.12 	year of service credited is the lesser of $100 or the maximum monthly service pension 
58.13 	amount that could be adopted by the relief association as a bylaws amendment that satisfies 
58.14 	section 424A.093, subdivision 6, paragraph (d); and
58.15 	(2) for a defined benefit relief association in which the governing bylaws provide for a 
58.16 	lump-sum service pension, the maximum lump-sum service pension amount for each year 
58.17 	of service credited is the lesser of $15,000 $20,000 or the maximum lump-sum service 
58.18 	pension amount that could be adopted by the relief association as a bylaws amendment that 
58.19 	satisfies section 424A.092, subdivision 6, paragraph (e).
58.20 	(b) A defined benefit relief association may set in its bylaws a service pension amount 
58.21 	that is not greater than the maximum amounts in clause (1) or (2), as applicable, but only 
58.22 	if the service pension amount has been ratified by the municipality.
58.23 	(1) For a defined benefit relief association that pays a monthly service pension, the 
58.24 	maximum monthly service pension amount per month for each year of service credited is 
58.25 	$100.
58.26 	(2) For a defined benefit relief association that pays a lump-sum service pension, the 
58.27 	maximum lump-sum service pension amount for each year of service credited is $15,000
58.28 	$20,000.
58.29 	(c) The method of calculating service pensions must be applied uniformly for all years 
58.30 	of active service. Credit must be given for all years of active service, unless the bylaws of 
58.31 	the relief association provide that service credit is not given for:
59.1 	(1) years of active service in excess of caps on service credit; or
59.2 	(2) years of active service earned by a former member who:
59.3 	(i) has ceased duties as a volunteer firefighter and paid on-call firefighter with the fire 
59.4 	department before becoming vested under subdivision 2; and
59.5 	(ii) has not resumed active service with the fire department and active membership in 
59.6 	the relief association for a period as defined in the relief association's bylaws, of not less 
59.7 	than five years.

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

59.9 	Sec. 2. REPEALER.
 59.10 	Minnesota Statutes 2024, section 356A.06, subdivision 5, is repealed.

59.11 	ARTICLE 9
59.12 	MINNESOTA SECURE CHOICE RETIREMENT PROGRAM

59.13 	Section 1. Minnesota Statutes 2024, section 187.03, subdivision 5, is amended to read:
59.14 		Subd. 5.Covered employee. (a) "Covered employee" means a person who is employed 
59.15 	by a covered employer and who satisfies any other criteria established by the board.
59.16 	(b) Covered employee does not include:
59.17 	(1) a person who, on December 31 of the preceding calendar year, was younger than 18 
59.18 	years of age;
59.19 	(2) a person covered under the federal Railway Labor Act, as amended, United States 
59.20 	Code, title 45, sections 151 et seq.;
59.21 	(3) a person on whose behalf an employer makes contributions to a Taft-Hartley 
59.22 	multiemployer pension trust fund; or
59.23 	(4) a person employed by the government of the United States, another country, the state 
59.24 	of Minnesota, another state, or any subdivision thereof.; or
59.25 	(5) a person employed on a temporary or seasonal basis for a limited duration, which 
59.26 	the employer determines at the time the person is hired will not extend beyond 180 days.
59.27 	(c) A person described in paragraph (b), clause (5), may elect to have contributions 
59.28 	deducted from the person's paycheck for remittance to the program, but only if the employer 
59.29 	would otherwise be considered a covered employer.

60.1 	Sec. 2. Minnesota Statutes 2024, section 187.03, is amended by adding a subdivision to 
60.2 	read:
60.3 		Subd. 6a.Enrollment window. "Enrollment window" means the period established by 
60.4 	the board, according to a phase-in schedule approved under Laws 2023, chapter 46, section 
60.5 	10, subdivision 1, paragraph (b), that is applicable to each covered employer and during 
60.6 	which the covered employer is first required to provide information to covered employees 
60.7 	and enroll covered employees who do not elect to opt out of the program.

60.8 	Sec. 3. Minnesota Statutes 2024, section 187.03, subdivision 7, is amended to read:
60.9 		Subd. 7.Executive director. "Executive director" means the chief executive and 
60.10 	administrative head of the program or, if an executive director has not been appointed, 
60.11 	executive director means the interim executive director, if one has been appointed.

60.12 	Sec. 4. Minnesota Statutes 2024, section 187.03, subdivision 7a, is amended to read:
60.13 		Subd. 7a.Home and community-based services employee. "Home and 
60.14 	community-based services employee" means an individual employed by the individual's 
60.15 	child or spouse who is not an employee of a provider agency and who is selected by and 
60.16 	working under the direction of a participant in a covered program to provide to the 
60.17 	participant:
60.18 	(1) consumer-directed community supports services under sections 256B.092 and 256B.49 
60.19 	and chapter 256S or under the alternative care program authorized under section 256B.0913; 
60.20 	or
60.21 	(2) services under the community first services and supports program authorized under 
60.22 	section 256B.85 and Minnesota's federally approved waiver programs.
60.23 	This definition applies only to this chapter and does not create any other legal rights or 
60.24 	obligations under state or federal law.

60.25 	Sec. 5. Minnesota Statutes 2024, section 187.05, is amended by adding a subdivision to 
60.26 	read:
60.27 		Subd. 1a.Certification by employers that are not covered employers. (a) Any entity 
60.28 	or person may file a certification with the executive director on a form prescribed by the 
60.29 	executive director and provide documentation in support of the certification, as requested 
60.30 	by the executive director, stating that the entity or person is not a covered employer. The 
61.1 	certification must state that the entity or person is not a covered employer for one or more 
61.2 	of the following reasons:
61.3 	(1) the entity or person has not been engaged for at least 12 months in a business, industry, 
61.4 	profession, trade, or other enterprise in Minnesota, whether for profit or not for profit;
61.5 	(2) the entity or person does not employ five or more employees;
61.6 	(3) the entity or person sponsors or contributes to or, in the immediately preceding 12 
61.7 	months, sponsored or contributed to a retirement savings plan for its employees; or
61.8 	(4) the entity is a political subdivision of the state or federal government.
61.9 	(b) Within 30 days of receiving the certification, the executive director must accept the 
61.10 	certification or issue a determination that the entity or person is a covered employer and 
61.11 	subject to the requirements of section 187.07.
61.12 	(c) The entity or person may appeal the executive director's determination by filing an 
61.13 	appeal with the board of directors no later than 30 days after receipt of the determination.

61.14 	Sec. 6. Minnesota Statutes 2024, section 187.05, subdivision 4, is amended to read:
61.15 		Subd. 4.Contribution rate. (a) The board must establish default, minimum, and 
61.16 	maximum may change the required employee contribution rates and an the escalation 
61.17 	schedule to automatically increase each covered employee's contribution rate annually until 
61.18 	the contribution rate is equal to the maximum contribution rate under section 187.07, 
61.19 	subdivision 1. The board must provide all covered employers with notice of a change in 
61.20 	employee contribution rates or the escalation schedule at least six months in advance of the 
61.21 	effective date of the change.
61.22 	(b) A covered employee must have the right, annually or more frequently as determined 
61.23 	by the board, to change the contribution rate, opt out or elect not to contribute, or cease 
61.24 	contributions.

61.25 	Sec. 7. Minnesota Statutes 2024, section 187.05, subdivision 6, is amended to read:
61.26 		Subd. 6.Withdrawals and distributions. The board must establish alternatives 
61.27 	permitting covered employees to take a withdrawal of all or a portion of the covered 
61.28 	employee's account while employed and one or more distributions following termination 
61.29 	of employment. By July 1, 2028, the board must include lifetime income options as 
61.30 	distribution alternatives must include lifetime income options.

62.1 	Sec. 8. Minnesota Statutes 2024, section 187.07, subdivision 1, is amended to read:
62.2 		Subdivision 1.Requirement to enroll employees. (a) Each covered employer must 
62.3 	enroll its covered employees in the program and withhold payroll deduction contributions 
62.4 	from each covered employee's paycheck no later than 30 days after the covered employee's 
62.5 	first day of employment, unless the covered employee has elected not to contribute.
62.6 	(b) Unless the board has approved a different rate or rates under section 187.05, 
62.7 	subdivision 4, or a covered employee has elected a different contribution rate or not to 
62.8 	contribute, the employee contribution rates and escalation schedule are:
62.9 	(1) five percent of pay for the covered employee's first year of participation;
62.10 	(2) six percent of pay for the covered employee's second year of participation;
62.11 	(3) seven percent of pay for the covered employee's third year of participation; and
62.12 	(4) eight percent of pay for the covered employee's fourth year of participation and each 
62.13 	year thereafter.
62.14 	(c) Paragraph (a) does not apply to a covered employer until the covered employer's 
62.15 	enrollment window has opened. No later than 30 days after the end of the enrollment window, 
62.16 	the covered employer must have enrolled all covered employees, except for any covered 
62.17 	employee who has elected not to contribute.
62.18 	(d) The executive director must communicate annually by email or otherwise in writing 
62.19 	to each covered employee:
62.20 	(1) the annual limit on employee contributions to a traditional IRA and a Roth IRA in 
62.21 	effect under section 408 and 408A, respectively, of the Internal Revenue Code; and
62.22 	(2) notice that it is the responsibility of the covered employee to reduce the covered 
62.23 	employee's contribution rate from the rate under paragraph (b) as necessary to stay within 
62.24 	the limit under section 408 or section 408A of the Internal Revenue Code that is applicable 
62.25 	to the covered employee and the type of IRA to which the contributions are being credited.

62.26 	Sec. 9. Minnesota Statutes 2024, section 187.07, subdivision 2, is amended to read:
62.27 		Subd. 2.Remitting contributions. Notwithstanding section 181.06, a covered employer 
62.28 	must timely remit payroll deduction contributions as required by the board withheld from 
62.29 	the paycheck of each covered employee to the program as soon as practicable after the 
62.30 	deduction is taken and no later than 30 days after the date of each paycheck.

63.1 	Sec. 10. Minnesota Statutes 2024, section 187.07, subdivision 3, is amended to read:
63.2 		Subd. 3.Distribution of information. (a) Covered employers must provide information 
63.3 	prepared by the board to all covered employees regarding the program. The information 
63.4 	must be provided to each covered employee at least 30no later than 14 days prior to the 
63.5 	date of the first paycheck from which employee contributions could be deducted for 
63.6 	transmittal to the program, if the covered employee does not elect to opt out of the program
63.7 	after the covered employee's first day of employment.
63.8 	(b) Paragraph (a) does not apply to a covered employer until the covered employer's 
63.9 	enrollment window has opened. No later than 14 days before the date of the first paycheck 
63.10 	from which employee contributions could be deducted for transmittal to the program, the 
63.11 	covered employer must provide the information prepared by the board regarding the program 
63.12 	to all covered employees of the covered employer.

63.13 	Sec. 11. Minnesota Statutes 2024, section 187.07, subdivision 6, is amended to read:
63.14 		Subd. 6.Enforcement. (a) As described under section 187.12, the board may impose:
63.15 	(1) statutory civil penalties against any covered employer that fails to comply with 
63.16 	subdivisions subdivision 1, 2, andor 3; and
63.17 	(2) statutory civil or criminal penalties against any covered employer that fails to comply 
63.18 	with subdivision 2.
63.19 	(b) At the request of the board, the attorney general shall enforce the penalties imposed 
63.20 	by the board against a covered employer. Proceeds of such penalties, after deducting 
63.21 	enforcement expenses, must be deposited in the Secure Choice administrative fund and are 
63.22 	appropriated to the program.
63.23 	(c) The board must provide covered employers with written warnings to any covered 
63.24 	employer that fails to comply with subdivision 1 or 3 or both subdivisions 1 and 3 for the 
63.25 	first yeartwo years of noncompliance before assessing. If the covered employer has not 
63.26 	complied with subdivision 1 or 3 during the two-year period after the date on which the 
63.27 	covered employer was first required to comply with subdivision 1 or 3, as applicable, the 
63.28 	board must assess penalties.

63.29 	Sec. 12. Minnesota Statutes 2024, section 187.08, subdivision 3, is amended to read:
63.30 		Subd. 3.Membership terms. (a) Board members serve for two-year terms, except for:
64.1 	(1) the executive directors of the Minnesota State Retirement System and the State Board 
64.2 	of Investment, who serve indefinitely; and
64.3 	(2) the initial term of the member who is an executive or other professional with 
64.4 	substantial experience in retirement plan investments under subdivision 1, clause (3), item 
64.5 	(iii), and the member who is a human resources executive under subdivision 1, clause (4), 
64.6 	is three years.
64.7 	(b) Board members' terms may be renewed, but no member may serve more than two 
64.8 	consecutive terms.

64.9 	Sec. 13. Minnesota Statutes 2024, section 187.08, subdivision 7, is amended to read:
64.10 		Subd. 7.Executive director; staff. (a) The board must appoint an executive director, 
64.11 	determine the duties of the executive director, and set the compensation of the executive 
64.12 	director. The board may appoint an interim executive director to serve as executive director 
64.13 	during any period that the executive director position is vacant.
64.14 	(b) The executive director may participate in deliberations but must not vote on any 
64.15 	matter before the board. The executive director must not participate in deliberations on any 
64.16 	matter before the board that results or is likely to result in direct measurable economic gain 
64.17 	to the executive director or the executive director's family.
64.18 	(c) The executive director must file with the Campaign Finance and Public Disclosure 
64.19 	Board an economic interest statement in a manner prescribed by section 10A.09, subdivisions 
64.20 	5 and 6.
64.21 	(b)(d) The board may hire staff as necessary to support the board and the executive 
64.22 	director or interim executive director in performing their duties or the board may authorize 
64.23 	the executive director or interim executive director to hire staff.

64.24 	Sec. 14. Minnesota Statutes 2024, section 187.11, is amended to read:
64.25 	187.11 OTHER STATE AGENCIES TO PROVIDE ASSISTANCE.
64.26 	(a) The board may enter into intergovernmental agreements with the commissioner of 
64.27 	revenue, the commissioner of labor and industry, the commissioner of employment and 
64.28 	economic development, and any other state agency that the board deems necessary or 
64.29 	appropriate to provide outreach, technical assistance, or compliance services. An agency 
64.30 	that enters into an intergovernmental agreement with the board pursuant to this section must 
64.31 	collaborate and cooperate with the board to provide the outreach, technical assistance, or 
64.32 	compliance services under any such agreement. The board, executive director, and program 
65.1 	staff must maintain the privacy of data obtained under any intergovernmental agreement if 
65.2 	required under chapter 13.
65.3 	(b) For purposes of section 268.19, subdivision 1, paragraph (a), clause (20), "assisting 
65.4 	with communication with employers and to verify employer compliance with chapter 187" 
65.5 	means providing the executive director with at least the following information for employers, 
65.6 	to the extent available to the commissioner of employment and economic development:
65.7 	(1) federal employer identification number;
65.8 	(2) business name, address, mailing address, email address, and phone number;
65.9 	(3) number of employees; and
65.10 	(4) employer industry code.
65.11 	(b) (c) The commissioner of administration must provide office space in the Capitol 
65.12 	complex for the executive director and staff of the program.

65.13 	Sec. 15. [187.12] PENALTIES FOR NONCOMPLIANCE.
65.14 		Subdivision 1.Failure to enroll covered employees or distribute information. (a) 
65.15 	The board may assess penalties against a covered employer that fails to comply with section 
65.16 	187.07, subdivision 1 or 3 or both subdivisions 1 and 3, beginning with the second 
65.17 	anniversary of the date on which the covered employer was first required to comply with 
65.18 	section 187.07, subdivision 1 or 3, as applicable.
65.19 	(b) The board may assess the following penalties for a covered employer's failure to 
65.20 	comply with section 187.07, subdivision 1 or 3:
65.21 	(1) on the second anniversary, a penalty of $100 per covered employee, not to exceed 
65.22 	$4,000;
65.23 	(2) on the third anniversary, a penalty of $200 per covered employee, not to exceed 
65.24 	$6,000;
65.25 	(3) on the fourth anniversary, a penalty of $300 per covered employee; and
65.26 	(4) on each anniversary after the fourth anniversary, a penalty of $500 per covered 
65.27 	employee.
65.28 	(c) If the covered employer fails to comply with section 187.07, subdivisions 1 and 3, 
65.29 	the board must assess two times the penalties in paragraph (b).
65.30 	(d) The date on which a covered employer is first required to comply with section 187.07, 
65.31 	subdivision 1, is the following:
66.1 	(1) for paragraph (a), on or before the 30th day after the first day of employment of a 
66.2 	covered employee hired by the covered employer; and
66.3 	(2) for paragraph (b), on or before the 30th day after the end of the enrollment window 
66.4 	applicable to the covered employer.
66.5 	(e) The date on which a covered employer is first required to comply with section 187.07, 
66.6 	subdivision 3, is the following:
66.7 	(1) for paragraph (a), for a newly hired covered employee, no later than 14 days after 
66.8 	the covered employee's first day of employment; and
66.9 	(2) for paragraph (b), no later than the 14th day prior to the date of the first paycheck 
66.10 	from which employee contributions could be deducted for transmittal to the program.
66.11 		Subd. 2.Notice and waiver. Before assessing a penalty under subdivision 1, the board 
66.12 	must provide the covered employer with a written notice informing the covered employer 
66.13 	of the amount of the penalty and that the penalty will not be assessed if:
66.14 	(1) the covered employer cures the violation no later than 30 days after the date of the 
66.15 	notice; or
66.16 	(2) the board waives the penalty at the request of the covered employer due to extenuating 
66.17 	circumstances.
66.18 		Subd. 3.Failure to remit contributions. (a) If the executive director has reason to 
66.19 	believe, based on communication from a covered employee or another source, that a covered 
66.20 	employer has failed to comply with section 187.07, subdivision 2, by not remitting payroll 
66.21 	deduction contributions withheld from the paycheck of one or more covered employees 
66.22 	within 30 days after the deduction is withheld, the executive director must make a written 
66.23 	demand to the covered employer requiring the covered employer to immediately remit to 
66.24 	the program the withheld contributions plus interest at the annual rate specified in section 
66.25 	356.59, subdivision 2, for the period beginning with the tenth day after the contribution was 
66.26 	deducted from the covered employee's paycheck to the date the contribution is remitted to 
66.27 	the program.
66.28 	(b) Any covered employer that willfully and intentionally fails to remit a payroll deduction 
66.29 	contribution within ten days after demand from the executive director is guilty of a 
66.30 	misdemeanor.
66.31 	(c) If the executive director issues a written demand to a covered employer under 
66.32 	paragraph (a) for a second time, the executive director must assess a penalty of $250 for 
66.33 	each employee contribution withheld but not transmitted to the program.
67.1 		Subd. 4.Action; damages. (a) A covered employee or the attorney general, upon referral 
67.2 	from the board, may bring a civil action against a covered employer for a failure to enroll 
67.3 	covered employees, distribute information, or remit contributions under section 187.07, 
67.4 	subdivisions 1 to 3. A covered employer who is found to have violated section 187.07, 
67.5 	subdivisions 1 to 3, is liable to the program for the civil penalties provided for in this section. 
67.6 	A covered employer who is found to have violated section 187.07, subdivisions 1 to 3, is 
67.7 	liable for compensatory damages and other appropriate relief including but not limited to 
67.8 	injunctive relief.
67.9 	(b) The attorney general, upon referral from the board, may bring a criminal action 
67.10 	against a covered employer for the willful and intentional failure to remit contributions 
67.11 	under section 187.07, subdivision 2.
67.12 	(c) An action brought under paragraph (a) or (b) may be filed in the district court of the 
67.13 	county in which a violation is alleged to have been committed, where the covered employer 
67.14 	resides or has a principal place of business, or any other court of competent jurisdiction.
67.15 	(d) In an action brought under paragraph (a) or (b), the court must order a covered 
67.16 	employer who is found to have committed a violation to pay to the program or covered 
67.17 	employee, as appropriate, reasonable costs, disbursements, witness fees, and attorney fees.

67.18 	Sec. 16. Minnesota Statutes 2024, section 268.19, subdivision 1, is amended to read:
67.19 		Subdivision 1.Use of data. (a) Except as provided by this section, data gathered from 
67.20 	any person under the administration of the Minnesota Unemployment Insurance Law are 
67.21 	private data on individuals or nonpublic data not on individuals as defined in section 13.02, 
67.22 	subdivisions 9 and 12, and may not be disclosed except according to a district court order 
67.23 	or section 13.05. A subpoena is not considered a district court order. These data may be 
67.24 	disseminated to and used by the following agencies without the consent of the subject of 
67.25 	the data:
67.26 	(1) state and federal agencies specifically authorized access to the data by state or federal 
67.27 	law;
67.28 	(2) any agency of any other state or any federal agency charged with the administration 
67.29 	of an unemployment insurance program;
67.30 	(3) any agency responsible for the maintenance of a system of public employment offices 
67.31 	for the purpose of assisting individuals in obtaining employment;
67.32 	(4) the public authority responsible for child support in Minnesota or any other state in 
67.33 	accordance with section 518A.83;
68.1 	(5) human rights agencies within Minnesota that have enforcement powers;
68.2 	(6) the Department of Revenue to the extent necessary for its duties under Minnesota 
68.3 	laws;
68.4 	(7) public and private agencies responsible for administering publicly financed assistance 
68.5 	programs for the purpose of monitoring the eligibility of the program's recipients;
68.6 	(8) the Department of Labor and Industry and the Commerce Fraud Bureau in the 
68.7 	Department of Commerce for uses consistent with the administration of their duties under 
68.8 	Minnesota law;
68.9 	(9) the Department of Human Services and the Office of Inspector General and its agents 
68.10 	within the Department of Human Services, including county fraud investigators, for 
68.11 	investigations related to recipient or provider fraud and employees of providers when the 
68.12 	provider is suspected of committing public assistance fraud;
68.13 	(10) the Department of Human Services for the purpose of evaluating medical assistance 
68.14 	services and supporting program improvement;
68.15 	(11) local and state welfare agencies for monitoring the eligibility of the data subject 
68.16 	for assistance programs, or for any employment or training program administered by those 
68.17 	agencies, whether alone, in combination with another welfare agency, or in conjunction 
68.18 	with the department or to monitor and evaluate the statewide Minnesota family investment 
68.19 	program and other cash assistance programs, the Supplemental Nutrition Assistance Program, 
68.20 	and the Supplemental Nutrition Assistance Program Employment and Training program by 
68.21 	providing data on recipients and former recipients of Supplemental Nutrition Assistance 
68.22 	Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child 
68.23 	care assistance under chapter 142E, or medical programs under chapter 256B or 256L or 
68.24 	formerly codified under chapter 256D;
68.25 	(12) local and state welfare agencies for the purpose of identifying employment, wages, 
68.26 	and other information to assist in the collection of an overpayment debt in an assistance 
68.27 	program;
68.28 	(13) local, state, and federal law enforcement agencies for the purpose of ascertaining 
68.29 	the last known address and employment location of an individual who is the subject of a 
68.30 	criminal investigation;
68.31 	(14) the United States Immigration and Customs Enforcement has access to data on 
68.32 	specific individuals and specific employers provided the specific individual or specific 
68.33 	employer is the subject of an investigation by that agency;
69.1 	(15) the Department of Health for the purposes of epidemiologic investigations;
69.2 	(16) the Department of Corrections for the purposes of case planning and internal research 
69.3 	for preprobation, probation, and postprobation employment tracking of offenders sentenced 
69.4 	to probation and preconfinement and postconfinement employment tracking of committed 
69.5 	offenders;
69.6 	(17) the state auditor to the extent necessary to conduct audits of job opportunity building 
69.7 	zones as required under section 469.3201;
69.8 	(18) the Office of Higher Education for purposes of supporting program improvement, 
69.9 	system evaluation, and research initiatives including the Statewide Longitudinal Education 
69.10 	Data System; and
69.11 	(19) the Family and Medical Benefits Division of the Department of Employment and 
69.12 	Economic Development to be used as necessary to administer chapter 268B; and
69.13 	(20) the executive director or interim executive director of the Minnesota Secure Choice 
69.14 	Retirement Program established under chapter 187 for the purposes of assisting with 
69.15 	communication with employers and to verify employer compliance with chapter 187.
69.16 	(b) Data on individuals and employers that are collected, maintained, or used by the 
69.17 	department in an investigation under section 268.182 are confidential as to data on individuals 
69.18 	and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3 
69.19 	and 13, and must not be disclosed except under statute or district court order or to a party 
69.20 	named in a criminal proceeding, administrative or judicial, for preparation of a defense.
69.21 	(c) Data gathered by the department in the administration of the Minnesota unemployment 
69.22 	insurance program must not be made the subject or the basis for any suit in any civil 
69.23 	proceedings, administrative or judicial, unless the action is initiated by the department.

69.24 	Sec. 17. EFFECTIVE DATE.
 69.25 	Sections 1 to 16 are effective the day following final enactment.

70.1 	ARTICLE 10
70.2 	PUBLIC PENSION PLANS: AMORTIZATION OF LIABILITIES; CORRECTION 
70.3 	OF ERRORS

70.4 	Section 1. Minnesota Statutes 2024, section 353G.08, subdivision 1a, is amended to read:
70.5 		Subd. 1a.Annual funding requirements; monthly division. (a) Annually, the executive 
70.6 	director shall determine the funding requirements of each monthly benefit account in the 
70.7 	statewide volunteer firefighter plan on or before August 1.
70.8 	(b) The executive director must determine the funding requirements of a monthly benefit 
70.9 	account under this subdivision from:
70.10 	(1) the most recent actuarial valuation normal cost, administrative expense, including 
70.11 	the cost of a regular actuarial valuation, and amortization results for the account determined 
70.12 	by the approved actuary retained by the retirement association under sections 356.215 and 
70.13 	356.216; and
70.14 	(2) the standards for actuarial work, utilizing a six percent investment return actuarial 
70.15 	assumption and, other actuarial assumptions approved under section 356.215, subdivision 
70.16 	18:, and the amortization periods specified in section 356.215, subdivision 11.
70.17 	(i) with that portion of any unfunded actuarial accrued liability attributable to a benefit 
70.18 	increase to be amortized over a period of 20 years from the date of the benefit change;
70.19 	(ii) with that portion of any unfunded actuarial accrued liability attributable to an 
70.20 	assumption change or an actuarial method change to be amortized over a period of 20 years 
70.21 	from the date of the assumption or method change;
70.22 	(iii) with that portion of any unfunded actuarial accrued liability attributable to an 
70.23 	investment loss to be amortized over a period of ten years from the date of investment loss; 
70.24 	and
70.25 	(iv) with the balance of any net unfunded actuarial accrued liability to be amortized over 
70.26 	a period of five years from the date of the actuarial valuation.
70.27 	(c) The required contributions of the entity or entities associated with the fire department 
70.28 	whose active firefighters are covered by the monthly division are the annual financial 
70.29 	requirements of the monthly benefit account of the plan under paragraph (b) reduced by the 
70.30 	amount of any fire state aid payable under chapter 477B, or any police and firefighter 
70.31 	retirement supplemental state aid payable under section 423A.022, that is reasonably 
70.32 	anticipated to be received by the plan attributable to the entity or entities during the following 
70.33 	calendar year. The required contribution must be allocated between the entities if more than 
71.1 	one entity is involved. A reasonable amount of anticipated fire state aid is an amount that 
71.2 	does not exceed the fire state aid actually received in the prior year multiplied by the factor 
71.3 	1.035.
71.4 	(d) The required contribution calculated in paragraph (c) must be paid to the plan on or 
71.5 	before December 31 of the year for which it was calculated. If the contribution is not received 
71.6 	by the plan by December 31, it is payable with interest at an annual compound rate of six 
71.7 	percent from the date due until the date payment is received by the plan. If the entity does 
71.8 	not pay the full amount of the required contribution, the executive director shall collect the 
71.9 	unpaid amount under section 353.28, subdivision 6.

71.10 	EFFECTIVE DATE. This section is effective beginning with actuarial valuations on 
71.11 	or after July 1, 2025.

71.12 	Sec. 2. Minnesota Statutes 2024, section 356.215, subdivision 1, is amended to read:
71.13 		Subdivision 1.Definitions. (a) For the purposes of sections 3.85 and 356.20 to 356.23, 
71.14 	each of the terms in the following paragraphs has the meaning given.
71.15 	(b) "Actuarial valuation" means a set of calculations prepared by an actuary retained 
71.16 	under section 356.214 if so required under section 3.85, or otherwise, by an approved 
71.17 	actuary, to determine the normal cost and the accrued actuarial liabilities of a benefit plan, 
71.18 	according to the entry age actuarial cost method and based upon stated assumptions including, 
71.19 	but not limited to rates of interest, mortality, salary increase, disability, withdrawal, and 
71.20 	retirement and to determine the payment necessary to amortize over a stated period any 
71.21 	unfunded accrued actuarial liability disclosed as a result of the actuarial valuation of the 
71.22 	benefit plan.
71.23 	(c) "Approved actuary" means:
71.24 	(1) a person who is regularly engaged in the business of providing actuarial services and 
71.25 	who is a fellow in the Society of Actuaries; or
71.26 	(2) a firm that retains a person described in clause (1) on its staff.
71.27 	(d) "Entry age actuarial cost method" means an actuarial cost method under which the 
71.28 	actuarial present value of the projected benefits of each individual currently covered by the 
71.29 	benefit plan and included in the actuarial valuation is allocated on a level basis over the 
71.30 	service of the individual, if the benefit plan is governed by section 424A.093, or over the 
71.31 	earnings of the individual, if the benefit plan is governed by any other law, between the 
71.32 	entry age and the assumed exit age, with the portion of the actuarial present value which is 
71.33 	allocated to the valuation year to be the normal cost and the portion of the actuarial present 
72.1 	value not provided for at the valuation date by the actuarial present value of future normal 
72.2 	costs to be the actuarial accrued liability, with aggregation in the calculation process to be 
72.3 	the sum of the calculated result for each covered individual and with recognition given to 
72.4 	any different benefit formulas which may apply to various periods of service.
72.5 	(e) "Experience study" means a report providing experience data and an actuarial analysis 
72.6 	of the adequacy of the actuarial assumptions on which actuarial valuations are based.
72.7 	(f) "Actuarial value of assets" means the market value of all assets as of the preceding 
72.8 	June 30, reduced by:
72.9 	(1) 20 percent of the difference between the actual net change in the market value of 
72.10 	total assets between the June 30 that occurred three years earlier and the June 30 that occurred 
72.11 	four years earlier and the computed increase in the market value of total assets over that 
72.12 	fiscal year period if the assets had earned a rate of return on assets equal to the annual 
72.13 	percentage investment return assumption used in the actuarial valuation for the July 1 that 
72.14 	occurred four years earlier;
72.15 	(2) 40 percent of the difference between the actual net change in the market value of 
72.16 	total assets between the June 30 that occurred two years earlier and the June 30 that occurred 
72.17 	three years earlier and the computed increase in the market value of total assets over that 
72.18 	fiscal year period if the assets had earned a rate of return on assets equal to the annual 
72.19 	percentage investment return assumption used in the actuarial valuation for the July 1 that 
72.20 	occurred three years earlier;
72.21 	(3) 60 percent of the difference between the actual net change in the market value of 
72.22 	total assets between the June 30 that occurred one year earlier and the June 30 that occurred 
72.23 	two years earlier and the computed increase in the market value of total assets over that 
72.24 	fiscal year period if the assets had earned a rate of return on assets equal to the annual 
72.25 	percentage investment return assumption used in the actuarial valuation for the July 1 that 
72.26 	occurred two years earlier; and
72.27 	(4) 80 percent of the difference between the actual net change in the market value of 
72.28 	total assets between the most recent June 30 and the June 30 that occurred one year earlier 
72.29 	and the computed increase in the market value of total assets over that fiscal year period if 
72.30 	the assets had earned a rate of return on assets equal to the annual percentage investment 
72.31 	return assumption used in the actuarial valuation for the July 1 that occurred one year earlier.
72.32 	(g) "Unfunded actuarial accrued liability" means the total current and expected future 
72.33 	benefit obligations, reduced by the sum of the actuarial value of assets and the present value 
72.34 	of future normal costs.
73.1 	(h) "Pension benefit obligation" means the actuarial present value of credited projected 
73.2 	benefits, determined as the actuarial present value of benefits estimated to be payable in the 
73.3 	future as a result of employee service attributing an equal benefit amount, including the 
73.4 	effect of projected salary increases and any step rate benefit accrual rate differences, to each 
73.5 	year of credited and expected future employee service.
73.6 	(h) "Standards for actuarial work" means the document required under section 3.85, 
73.7 	subdivision 10, to be adopted by the Legislative Commission on Pensions and Retirement 
73.8 	as so adopted and amended from time to time.

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

73.10 	Sec. 3. Minnesota Statutes 2024, section 356.215, subdivision 4, is amended to read:
73.11 		Subd. 4.Actuarial valuation; contents. (a) The actuarial valuation must be made in 
73.12 	conformity with the requirements of the definition contained in subdivision 1 and the most 
73.13 	recent standards for actuarial work adopted by the Legislative Commission on Pensions 
73.14 	and Retirement.
73.15 	(b) The actuarial valuation must measure all aspects of the benefit plan of the fund in 
73.16 	accordance with changes in benefit plans, if any, and salaries reasonably anticipated to be 
73.17 	in force during the ensuing fiscal year. The actuarial valuation must be prepared in accordance 
73.18 	with the entry age actuarial cost method. The actuarial valuation required under this section 
73.19 	must include the information required in subdivisions 5 to 15.

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

73.21 	Sec. 4. Minnesota Statutes 2024, section 356.215, subdivision 8, is amended to read:
73.22 		Subd. 8.Actuarial assumptions. (a) The actuarial valuation must use the applicable 
73.23 	following investment return assumption:

73.2573.24
	plan
	investment return 
assumption
		
73.26	general state employees retirement plan
	7%
		
73.27	correctional state employees retirement plan
	7
		
73.28	State Patrol retirement plan
	7
		
73.29
73.30
73.31	legislators retirement plan, and for the 
constitutional officers calculation of total plan 
liabilities
	0
		
73.32	judges retirement plan
	7
		
73.33	general public employees retirement plan
	7
		
73.34	public employees police and fire retirement plan
	7
		
74.1
74.2	local government correctional service retirement 
plan
	7
		
74.3	teachers retirement plan
	7
		
74.4	St. Paul teachers retirement plan
	7
		
74.5	Bloomington Fire Department Relief Association
	6
		
74.6
74.7	local monthly benefit volunteer firefighter relief 
associations
	5
		
74.8
74.9	monthly benefit retirement plans in the statewide 
volunteer firefighter retirement plan
	6
		
74.10 	(b) The actuarial valuation for each of the covered retirement plans listed in section 
74.11 	356.415, subdivision 2, and the St. Paul Teachers Retirement Fund Association must take 
74.12 	into account the postretirement adjustment rate or rates applicable to the plan as specified 
74.13 	in section 354A.29, subdivision 7, or 356.415, whichever applies.
74.14 	(c) The actuarial valuation must use the applicable salary increase and payroll growth 
74.15 	assumptions found in the appendix to the standards for actuarial work adopted by the 
74.16 	Legislative Commission on Pensions and Retirement pursuant to section 3.85, subdivision 
74.17 	10. The appendix must be updated whenever new assumptions have been approved or 
74.18 	deemed approved under subdivision 18.
74.19 	(d) The assumptions set forth in the appendix to the standards for actuarial work continue 
74.20 	to apply, unless a different salary assumption or a different payroll increase assumption:
74.21 	(1) has been proposed by the governing board of the applicable retirement plan;
74.22 	(2) is accompanied by the concurring recommendation of the actuary retained under 
74.23 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most 
74.24 	recent actuarial valuation report if section 356.214 does not apply; and
74.25 	(3) has been approved or deemed approved under subdivision 18.

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

74.27 	Sec. 5. Minnesota Statutes 2024, section 356.215, subdivision 11, is amended to read:
74.28 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating the level 
74.29 	normal cost, The actuarial valuation of the retirementeach pension plan listed in subdivision 
74.30 	8, paragraph (a), other than the legislators retirement plan, the Bloomington Fire Department 
74.31 	Relief Association, and the local monthly benefit volunteer firefighter relief associations, 
74.32 	must contain an exhibit for financial reporting purposes indicating the additional annual 
74.33 	contribution sufficient to amortize on a level percent of payroll basis the unfunded actuarial 
74.34 	accrued liability and must contain an exhibit indicating the additional contribution sufficient 
75.1 	to amortize the unfunded actuarial accrued liability. For the retirement plans listed in 
75.2 	subdivision 8, paragraph (a), but excluding the legislators retirement plan, the Bloomington 
75.3 	Fire Department Relief Association, and the local monthly benefit volunteer firefighter 
75.4 	relief associations, the additional contribution must be calculated on a level percentage of 
75.5 	covered payroll basis by the established date for full funding in effect when the valuation 
75.6 	is prepared, assuming annual payroll growth at the applicable percentage rate set forth in 
75.7 	the appendix described in subdivision 8, paragraph (c). For the legislators retirement plan, 
75.8 	the additional annual contribution must be calculated on a level annual dollar amount basis.
75.9 	resulting from any of the following changes, over the period specified for that change, except 
75.10 	that the pension plan's unfunded actuarial accrued liability as of July 1, 2024, must be 
75.11 	amortized over a period that ends June 30, 2048:
75.12 	(1) experience gain or loss: 15 years;
75.13 	(2) assumption or method change: 20 years;
75.14 	(3) benefit change for active members: 15 years;
75.15 	(4) long-term benefit change for inactive members: 15 years;
75.16 	(5) short-term benefit change for inactive members: the number of years during which 
75.17 	the benefit change will be in effect; and
75.18 	(6) an annual contribution that is more or less than the actuarially determined contribution: 
75.19 	15 years.
75.20 	(b) The amortization periods specified in paragraph (a) apply:
75.21 	(1) unless the standards for actuarial work state otherwise; and
75.22 	(2) except that, for the legislators retirement plan, the additional annual contribution 
75.23 	sufficient to amortize the unfunded actuarial accrued liability must be calculated on a level 
75.24 	dollar basis with an amortization period of one year.
75.25 	(b) This paragraph applies only if the calculation under this paragraph for a retirement 
75.26 	plan results in an established date for full funding that is earlier than the established date 
75.27 	for full funding applicable to the retirement plan under paragraph (c). For any retirement 
75.28 	plan, if there has been a change in any or all of the actuarial assumptions used for calculating 
75.29 	the actuarial accrued liability of the fund, a change in the benefit plan governing annuities 
75.30 	and benefits payable from the fund, a change in the actuarial cost method used in calculating 
75.31 	the actuarial accrued liability of all or a portion of the fund, or a combination of the three, 
75.32 	and the change or changes, by itself or by themselves and without inclusion of any other 
75.33 	items of increase or decrease, produce a net increase in the unfunded actuarial accrued 
76.1 	liability in the fund, the established date for full funding must be determined using the 
76.2 	following procedure:
76.3 	(i) the unfunded actuarial accrued liability of the fund must be determined in accordance 
76.4 	with the plan provisions governing annuities and retirement benefits and the actuarial 
76.5 	assumptions in effect before an applicable change;
76.6 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
76.7 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
76.8 	(i) by the established date for full funding in effect before the change must be calculated 
76.9 	using the investment return assumption specified in subdivision 8 in effect before the change;
76.10 	(iii) the unfunded actuarial accrued liability of the fund must be determined in accordance 
76.11 	with any new plan provisions governing annuities and benefits payable from the fund and 
76.12 	any new actuarial assumptions and the remaining plan provisions governing annuities and 
76.13 	benefits payable from the fund and actuarial assumptions in effect before the change;
76.14 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
76.15 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
76.16 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
76.17 	under item (iii) over a period of 30 years from the end of the plan year in which the applicable 
76.18 	change is effective must be calculated using the applicable investment return assumption 
76.19 	specified in subdivision 8 in effect after any applicable change;
76.20 	(v) the level annual dollar or level percentage amortization contribution under item (iv) 
76.21 	must be added to the level annual dollar amortization contribution or level percentage 
76.22 	calculated under item (ii);
76.23 	(vi) the period in which the unfunded actuarial accrued liability amount determined in 
76.24 	item (iii) is amortized by the total level annual dollar or level percentage amortization 
76.25 	contribution computed under item (v) must be calculated using the investment return 
76.26 	assumption specified in subdivision 8 in effect after any applicable change, rounded to the 
76.27 	nearest integral number of years, but not to exceed 30 years from the end of the plan year 
76.28 	in which the determination of the established date for full funding using the procedure set 
76.29 	forth in this clause is made and not to be less than the period of years beginning in the plan 
76.30 	year in which the determination of the established date for full funding using the procedure 
76.31 	set forth in this clause is made and ending by the date for full funding in effect before the 
76.32 	change; and
77.1 	(vii) the period determined under item (vi) must be added to the date as of which the 
77.2 	actuarial valuation was prepared and the date obtained is the new established date for full 
77.3 	funding.
77.4 	(c) The established date for full funding is the date provided for each of the following 
77.5 	plans:
77.6 	(i) for the general employees retirement plan of the Public Employees Retirement 
77.7 	Association, the established date for full funding is June 30, 2048;
77.8 	(ii) for the Teachers Retirement Association, the established date for full funding is June 
77.9 	30, 2048;
77.10 	(iii) for the correctional state employees retirement plan and the State Patrol retirement 
77.11 	plan of the Minnesota State Retirement System, the established date for full funding is June 
77.12 	30, 2048;
77.13 	(iv) for the judges retirement plan, the established date for full funding is June 30, 2048;
77.14 	(v) for the local government correctional service retirement plan and the public employees 
77.15 	police and fire retirement plan, the established date for full funding is June 30, 2048;
77.16 	(vi) for the St. Paul Teachers Retirement Fund Association, the established date for full 
77.17 	funding is June 30, 2048; and
77.18 	(vii) for the general state employees retirement plan of the Minnesota State Retirement 
77.19 	System, the established date for full funding is June 30, 2048.
77.20 	(d) For the retirement plans for which the annual actuarial valuation indicates an excess 
77.21 	of valuation assets over the actuarial accrued liability, the valuation assets in excess of the 
77.22 	actuarial accrued liability must be recognized as a reduction in the current contribution 
77.23 	requirements by an amount equal to the amortization of the excess expressed as a level 
77.24 	percentage of pay over a 30-year period beginning anew with each annual actuarial valuation 
77.25 	of the plan.

77.26 	EFFECTIVE DATE. This section is effective beginning with the July 1, 2025, actuarial 
77.27 	valuations.

77.28 	Sec. 6. Minnesota Statutes 2024, section 356.215, subdivision 17, is amended to read:
77.29 		Subd. 17.Actuarial services by approved actuaries. (a) The actuarial valuation or 
77.30 	quadrennial experience study must be made and any actuarial consulting services for a 
77.31 	retirement fund or plan must be provided by an approved actuary. The actuarial valuation 
77.32 	or quadrennial experience study must include a signed written declaration that it has been 
78.1 	prepared according to sections 356.20 to 356.23 and according to the most recent standards 
78.2 	for actuarial work adopted by the Legislative Commission on Pensions and Retirement.
78.3 	(b) Actuarial valuations or experience studies prepared by an approved actuary retained 
78.4 	by a retirement fund or plan must be submitted to the Legislative Commission on Pensions 
78.5 	and Retirement within ten days of the submission of the document to the retirement fund 
78.6 	or plan.

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

78.8 	Sec. 7. Minnesota Statutes 2024, section 356.636, subdivision 2, is amended to read:
78.9 		Subd. 2.Correction of errors. (a) The executive director of a pension fund may correct 
78.10 	an operational, demographic, or employer or employee eligibility error, made by a pension 
78.11 	fund or an error in a plan document that is not a statute if the executive director determines 
78.12 	that correction is necessary or appropriate to preserve and protect the tax qualification of 
78.13 	any pension or retirement plan listed in section 356.611, subdivision 6, that is part of
78.14 	administered by the pension fund. The method of correction must comply with the Internal 
78.15 	Revenue Service Employee Plans Compliance Resolution System (EPCRS) or any successor 
78.16 	thereto, if the EPCRS addresses the error and correction.
78.17 	(b) To the extent deemed necessary by the executive director to implement correction, 
78.18 	the executive director may:
78.19 	(1) make distributions;
78.20 	(2) transfer assets;
78.21 	(3) recover an overpayment by reducing future benefit payments or designating 
78.22 	appropriate revenue or source of funding that will restore to the plan the amount of the 
78.23 	overpayment; or
78.24 	(4) take any other action that will restore the plan and any affected member or participant 
78.25 	to the position the plan, member, or participant would have been in had the error not occurred.
78.26 	(c) An executive director may correct an error under paragraph (a) or (b) without regard 
78.27 	to any statute that imposes a time limitation on making such correction.

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

78.29 	Sec. 8. Minnesota Statutes 2024, section 356.636, subdivision 3, is amended to read:
78.30 		Subd. 3.Annual report. (a) The executive director of each pension fund must submit 
78.31 	a report annually, no later than each February 1, to the chair and executive director of the 
79.1 	Legislative Commission on Pensions and Retirement on whether the executive director of 
79.2 	the pension fund corrected any operational, demographic, employer or employee eligibility,
79.3 	no later than each February 1. The report must describe each error or plan document error 
79.4 	corrected under subdivision 2 during the preceding calendar year., other than:
79.5 	(1) an error corrected in the ordinary course of business; and
79.6 	(2) correction authorized by current law, including but not limited to correction authorized 
79.7 	under sections 352.04, 353.27, 354.42, 356.401, and 356.637.
79.8 	(b) The report must describe the error, the pension or retirement plan affected by the 
79.9 	error, the method of correction, and the cost, if any, to the pension or retirement plan, 
79.10 	employee, or employer of the error and correction.
79.11 	(c) An error is corrected in the ordinary course of business if it is a correction or 
79.12 	cancellation of an overpayment or an adjustment of an ongoing annuity amount.

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

79.14 	ARTICLE 11
79.15 	WORK GROUP ON PENSION PLANS FOR PROBATION OFFICERS AND 911 
79.16 	TELECOMMUNICATORS

79.17 	Section 1. WORK GROUP ON CREATING PENSION PLANS FOR PROBATION 
79.18 	OFFICERS AND 911 TELECOMMUNICATORS.
 79.19 		Subdivision 1.Work group established. The executive director of the Legislative 
79.20 	Commission on Pensions and Retirement (commission executive director) must convene a 
79.21 	work group for the purpose of recommending a pension plan to be administered by the 
79.22 	Minnesota State Retirement System (MSRS) for probation officers and 911 
79.23 	telecommunicators who are state employees, as defined in Minnesota Statutes, section 
79.24 	352.01, subdivision 2, and a pension plan to be administered by the Public Employees 
79.25 	Retirement Association (PERA) for probation officers and 911 telecommunicators who are 
79.26 	public employees, as defined in Minnesota Statutes, section 353.01, subdivision 2.
79.27 		Subd. 2.Membership. (a) The members of the work group are the following:
79.28 	(1) the executive director of PERA, or the executive director's designee, and a second 
79.29 	member of the PERA staff designated by the executive director;
79.30 	(2) the executive director of MSRS, or the executive director's designee, and a second 
79.31 	member of the MSRS staff designated by the executive director;
79.32 	(3) the commissioner of corrections or the commissioner's designee;
80.1 	(4) the commissioner of public safety or the commissioner's designee;
80.2 	(5) a representative from the Minnesota Association of County Probation Officers;
80.3 	(6) a representative from the Minnesota Corrections Association;
80.4 	(7) a representative from the Minnesota Association of Professional Employees;
80.5 	(8) a representative from the International Brotherhood of Teamsters Local 320;
80.6 	(9) a representative from the American Federation of State, County and Municipal 
80.7 	Employees Council 5;
80.8 	(10) two representatives from the Association of Minnesota Counties;
80.9 	(11) a representative from the League of Minnesota Cities;
80.10 	(12) a representative from the Minnesota Inter-County Association;
80.11 	(13) a representative from the Minnesota Association of Public Safety Communications 
80.12 	Officials or the National Emergency Number Association of Minnesota;
80.13 	(14) a representative from the Law Enforcement Labor Services;
80.14 	(15) a representative from the Minnesota Association of Community Corrections Act 
80.15 	Counties;
80.16 	(16) a representative from the Minnesota Professional Fire Fighters Association; and
80.17 	(17) a representative from the Minnesota Police and Peace Officers Association.
80.18 	(b) The commission executive director may invite others, including the commission's 
80.19 	actuary, to participate in one or more meetings of the work group.
80.20 	(c) The organizations specified in paragraph (a) must provide the commission executive 
80.21 	director with the names and contact information for the representatives who will serve on 
80.22 	the work group by June 14, 2025.
80.23 		Subd. 3.Mandate. (a) In arriving at the work group's recommendations, the work group 
80.24 	must determine:
80.25 	(1) the features of each pension plan, including but not limited to:
80.26 	(i) employee and employer contribution rates;
80.27 	(ii) vesting requirements;
80.28 	(iii) the benefit formula;
80.29 	(iv) normal and early retirement ages;
81.1 	(v) disability benefits;
81.2 	(vi) postretirement adjustments;
81.3 	(vii) the extent to which past service will be credited and paid for; and
81.4 	(viii) definitions for "probation officer" and "911 telecommunicator";
81.5 	(2) whether the new plans will be entirely new pension plans or whether the new plans 
81.6 	will be component pension plans similar to the special coverage for state fire marshals under 
81.7 	Minnesota Statutes, section 352.87; and
81.8 	(3) the options that are available or could be made available for providing health care 
81.9 	to employees who take early retirement under the new pension plans.
81.10 	(b) The work group must also consider:
81.11 	(1) the study prepared by PERA that estimates the costs and benefits for a pension plan 
81.12 	for probation officers, 911 telecommunicators, and any other public safety adjacent 
81.13 	employees;
81.14 	(2) the financial impact resulting from the potential cessation of benefit accruals and 
81.15 	contributions for members that transfer from the MSRS general state employees retirement 
81.16 	plan or the PERA general employees retirement plan to the new pension plan;
81.17 	(3) options for members to purchase credit for past service, including methods for 
81.18 	purchasing credit for past service and possible sources of funding for making purchases, 
81.19 	whether from employee or employer contributions or the state;
81.20 	(4) how contributions used to prefund benefit improvements can be made before the 
81.21 	new pension plans are operational;
81.22 	(5) any other public safety adjacent positions, including forensic scientists, that should 
81.23 	be included in the new pension plans and how those positions should be defined;
81.24 	(6) the balance of employee and employer contributions, including the interest in funding 
81.25 	pension benefit improvements with increased employee contributions; and
81.26 	(7) a bill styled as 2025 H.F. No. 1779/S.F. No. 1986, also referred to as revisor number 
81.27 	25-02845, or its equivalent, passed/introduced in the 2025 regular session or special session, 
81.28 	including the testimony on the bill at the meetings of the Legislative Commission on Pensions 
81.29 	and Retirement.
81.30 		Subd. 4.Proposed legislation. With the assistance of the commission executive director, 
81.31 	the work group must prepare proposed legislation that implements the recommendations 
82.1 	of the work group under subdivision 3. If the work group recommends more than one 
82.2 	approach to improving pension benefits, the work group must provide alternative bills. 
82.3 	Recommended legislation must require MSRS and PERA to have any new plan or component 
82.4 	plan operational by January 1, 2027.
82.5 		Subd. 5.Due date for submitting recommendations to the commission. The chair of 
82.6 	the work group must submit the recommendations of the work group, along with proposed 
82.7 	legislation that implements the recommendations, to the chair and executive director of the 
82.8 	Legislative Commission on Pensions and Retirement by January 31, 2026.
82.9 		Subd. 6.Meetings; chair; administrative support. (a) The commission executive 
82.10 	director must convene the first meeting of the work group by August 1, 2025.
82.11 	(b) The members of the work group must elect a chair at the first meeting.
82.12 	(c) Meetings may be conducted remotely or in person or a combination of remotely and 
82.13 	in person.
82.14 	(d) Commission staff must provide meeting space, if needed, and administrative support 
82.15 	to the chair of the work group.
82.16 		Subd. 7.Compensation; lobbying; retaliation. (a) Members of the work group serve 
82.17 	without compensation.
82.18 	(b) Participation in the work group is not lobbying under Minnesota Statutes, chapter 
82.19 	10A.
82.20 	(c) An individual's employer or an organization or association of which an individual 
82.21 	is a member must not retaliate against the individual because of the individual's participation 
82.22 	in the work group.
82.23 		Subd. 8.Expiration. The work group expires June 30, 2027.

82.24 	ARTICLE 12
82.25 	LEGISLATIVE COMMISSION ON PENSIONS AND RETIREMENT

82.26 	Section 1. Minnesota Statutes 2024, section 3.85, subdivision 2, is amended to read:
82.27 		Subd. 2.Powers. The commission shall make a continuing study and investigation of 
82.28 	retirement benefit plans applicable to nonfederal government employees in this state. The 
82.29 	powers and duties of the commission include, but are not limited to the following:
82.30 	(a) studying retirement benefit plans applicable to nonfederal government employees 
82.31 	in Minnesota, including federal plans available to the employees;
83.1 	(b) making recommendations within the scope of its study, including attention to financing 
83.2 	of the various pension funds and financing of accrued liabilities;
83.3 	(c) considering all aspects of pension planning and operation and making 
83.4 	recommendations designed to establish and maintain sound pension policy for all funds;
83.5 	(d) analyzing each item of proposed pension and retirement legislation, including 
83.6 	amendments to each, with particular reference to analysis of their the legislation's cost, 
83.7 	actuarial soundness, and adherence to sound pension policy, and reporting its findings to 
83.8 	the legislature;
83.9 	(e) creating and maintaining a library for reference concerning pension and retirement 
83.10 	matters, including information about laws and systems in other states; and
83.11 	(f) studying, analyzing, and preparing reports in regard to subjects certified to the 
83.12 	commission for study.

83.13 	Sec. 2. Minnesota Statutes 2024, section 3.85, subdivision 3, is amended to read:
83.14 		Subd. 3.Membership. The commission consists of seven members of the senate 
83.15 	appointed by the Subcommittee on Committees of the Committee on Rules and 
83.16 	Administration and seven members of the house of representatives appointed by the speaker. 
83.17 	No more than five members from each chamber may be from the majority caucus in that 
83.18 	chamber. Members shall be appointed at the commencement of each regular session of the 
83.19 	legislature for a two-year term beginning January 16 of the first year of the regular session. 
83.20 	Members continue A member continues to serve until their successors are appointed the 
83.21 	earlier of the appointment of the member's successor or the end of the member's legislative 
83.22 	term of office. Vacancies that occur while the legislature is in session shall be filled like 
83.23 	regular appointments. If the legislature is not in session, senate vacancies shall be filled by 
83.24 	the last Subcommittee on Committees of the senate Committee on Rules and Administration 
83.25 	or other appointing authority designated by the senate rules, and house of representatives 
83.26 	vacancies shall be filled by the last speaker of the house, or if the speaker is not available, 
83.27 	by the last chair of the house of representatives Rules Committee.

83.28 	Sec. 3. Minnesota Statutes 2024, section 3.85, subdivision 10, is amended to read:
83.29 		Subd. 10.Standards for pension valuations and cost estimates. The commission shall 
83.30 	adopt standards prescribing specific detailed methods to calculate, evaluate, and display 
83.31 	current and proposed law projected liabilities, costs, and actuarial equivalents of all covered
83.32 	public employee pension plans in Minnesota under section 356.20, subdivision 2, that are 
84.1 	defined benefit plans. These standards shall must be consistent with chapter 356 and be 
84.2 	updated annually periodically. At a minimum, the standards shall must contain requirements 
84.3 	that comply with generally accepted accounting principles actuarial standards of practice
84.4 	applicable to government pension plans. The standards may include additional financial, 
84.5 	funding, or valuation requirements that are not required under generally accepted accounting 
84.6 	principles applicable to government pension plans.

84.7 	Sec. 4. EFFECTIVE DATE.
 84.8 	Sections 1 to 3 are effective the day following final enactment.

84.9 	ARTICLE 13
84.10 	STATEWIDE VOLUNTEER FIREFIGHTER PLAN

84.11 	Section 1. Minnesota Statutes 2024, section 353G.08, subdivision 1a, is amended to read:
84.12 		Subd. 1a.Annual funding requirements; monthly division. (a) Annually, the executive 
84.13 	director shall determine the funding requirements of each monthly benefitfire department 
84.14 	account in the statewide volunteer firefightermonthly division of the defined benefit plan 
84.15 	on or before August 1.
84.16 	(b) The executive director must determine the funding requirements of a monthly benefit
84.17 	fire department account under this subdivision from:
84.18 	(1) the most recent actuarial valuation normal cost, administrative expense, including 
84.19 	the cost of a regular actuarial valuation, and amortization results for the account determined 
84.20 	by the approved actuary retained by the retirement association under sections 356.215 and 
84.21 	356.216; and
84.22 	(2) the standards for actuarial work, utilizing a six percent investment return actuarial 
84.23 	assumption and other actuarial assumptions approved under section 356.215, subdivision 
84.24 	18:
84.25 	(i) with that portion of any unfunded actuarial accrued liability attributable to a benefit 
84.26 	increase to be amortized over a period of 20 years from the date of the benefit change;
84.27 	(ii) with that portion of any unfunded actuarial accrued liability attributable to an 
84.28 	assumption change or an actuarial method change to be amortized over a period of 20 years 
84.29 	from the date of the assumption or method change;
85.1 	(iii) with that portion of any unfunded actuarial accrued liability attributable to an 
85.2 	investment loss to be amortized over a period of ten years from the date of investment loss; 
85.3 	and
85.4 	(iv) with the balance of any net unfunded actuarial accrued liability to be amortized over 
85.5 	a period of five years from the date of the actuarial valuation.
85.6 	(c) The required contributions of the entity or entities associated with the fire department 
85.7 	whose active firefighters are covered by the monthly division are the annual financial 
85.8 	requirements of the monthly benefitfire department account of the plan under paragraph 
85.9 	(b) reduced by the amount of any fire state aid payable under chapter 477B, or any police 
85.10 	and firefighter retirement supplemental state aid payable under section 423A.022, that is 
85.11 	reasonably anticipated to be received by the plan attributable to the entity or entities during 
85.12 	the following calendar year. The required contribution must be allocated between the entities 
85.13 	if more than one entity is involved. A reasonable amount of anticipated fire state aid is an 
85.14 	amount that does not exceed the fire state aid actually received in the prior year multiplied 
85.15 	by the factor 1.035.
85.16 	(d) The required contribution calculated in paragraph (c) must be paid to the plan on or 
85.17 	before December 31 of the year for which it was calculated. If the contribution is not received 
85.18 	by the plan by December 31, it is payable with interest at an annual compound rate of six 
85.19 	percent from the date due until the date payment is received by the plan. If the entity does 
85.20 	not pay the full amount of the required contribution, the executive director shall collect the 
85.21 	unpaid amount under section 353.28, subdivision 6.

85.22 	Sec. 2. Minnesota Statutes 2024, section 353G.11, is amended by adding a subdivision to 
85.23 	read:
85.24 		Subd. 1b.Applicable benefit level. (a) In determining a member's retirement benefit 
85.25 	under section 353G.09, subdivision 1a, the benefit level applicable to the member is the 
85.26 	benefit level in effect as of the date the member terminated firefighting services for the fire 
85.27 	department of a participating employer.
85.28 	(b) Except as provided under section 353G.09, subdivision 4:
85.29 	(1) the benefit level for a member of the lump-sum division is the benefit level selected 
85.30 	under section 353G.05, subdivision 1d, by the member's relief association or, if applicable, 
85.31 	the municipality or firefighting corporation that employs the member or the benefit level 
85.32 	as modified under subdivision 2, whichever is in effect as of the date the member terminated 
85.33 	firefighting services; or
86.1 	(2) the benefit level for a member of the monthly division is the benefit level under the 
86.2 	retirement benefit plan document applicable to the member's former relief association or 
86.3 	the benefit level under the retirement benefit plan document as modified under subdivision 
86.4 	2a, whichever is in effect as of the date the member terminated firefighting services.

86.5 	Sec. 3. Minnesota Statutes 2024, section 353G.11, subdivision 2, is amended to read:
86.6 		Subd. 2.Benefit level changes in the lump-sum division of defined benefit plan. (a) 
86.7 	A fire department's fire chief or the governing body operating a fire department may request 
86.8 	an increase in the benefit level as provided in this subdivision.
86.9 	(b) The fire chief or governing body must request a cost estimate from the executive 
86.10 	director of an increase in the service pensionbenefit level applicable to the active firefighters 
86.11 	of the fire department.
86.12 	(c) The executive director must prepare the cost estimate using a procedure certified as 
86.13 	accurate by the approved actuary retained by the association.
86.14 	(d) Within 120 days after receiving the cost estimate from the executive director, the 
86.15 	governing body may approve the benefit level change, effective for January 1 of the following 
86.16 	calendar year unless the governing body specifies in the approval document an effective 
86.17 	date that is January 1 of the second year following the approval date. If the approval occurs 
86.18 	after April 30, the required municipal contribution for the following calendar year must be 
86.19 	recalculated and the results reported to the governing body. If not approved within 120 days 
86.20 	of the receipt of the cost estimate, the benefit level change is considered to have been 
86.21 	disapproved.

86.22 	Sec. 4. Minnesota Statutes 2024, section 353G.11, subdivision 2a, is amended to read:
86.23 		Subd. 2a.Procedure for changing Benefit level changes in the monthly division. (a) 
86.24 	TheA fire department's fire chief of a fire departmentor the governing body operating a 
86.25 	fire department that has an active membership that is covered by the monthly benefit 
86.26 	retirement division of the plan may initiate the process of modifyingrequest an increase in 
86.27 	the benefit level provided in the retirement benefit plan document under this section
86.28 	subdivision.
86.29 	(b) The modification procedure is initiated when the applicable fire chief or governing 
86.30 	body files with the executive director of the association a written summary of the desired 
86.31 	benefit plan document modification, the proposed benefit plan document modification 
86.32 	language, a written request for the preparation of an actuarial cost estimate for the proposed 
87.1 	benefit plan document modification, and payment of the estimated cost of the actuarial cost 
87.2 	estimate.
87.3 	(c) Upon receipt of the modification request and related documents, the executive director 
87.4 	shallmust review the language of the proposed benefit plan document modification and, if 
87.5 	a clarification is needed in the submitted language, shall inform the fire chief or governing 
87.6 	body of the necessary clarification. OnceAfter the proposed benefit plan document 
87.7 	modification languagefire chief or governing body has been clarified by the fire chief and 
87.8 	resubmittedsubmitted the clarified language to the executive director, the executive director 
87.9 	shall arrange for the approved actuary retained by the association to prepare a benefit plan 
87.10 	document modification cost estimate under the applicable provisions of section 356.215
87.11 	and of the standards for actuarial work adopted by the Legislative Commission on Pensions 
87.12 	and Retirement must prepare the cost estimate using a procedure certified as accurate by 
87.13 	the approved actuary retained by the association. Upon completion of the benefit plan 
87.14 	document modification cost estimate, the executive director shallmust forward the estimate 
87.15 	to the fire chief who requested it and to the chief financial officer of the municipality or 
87.16 	entity with which the fire department is primarily associated.
87.17 	(d) The fire chief, upon receipt of the cost estimate, shall circulatemust distribute the 
87.18 	cost estimate withto the active firefighters in the fire department and shall take reasonable 
87.19 	steps to provide the cost estimate results to any affected retired members of the fire 
87.20 	department and their beneficiaries. The chief financial officer of the municipality or entity 
87.21 	associated with the fire department shallmust present the proposed modification language 
87.22 	and the cost estimate to the governing body of the municipality or entity for its consideration 
87.23 	at a public hearing held for that purpose.
87.24 	(e) If the governing body of the municipality or entity approves the modification language, 
87.25 	the chief administrative officer of the municipality or entity shallmust notify the executive 
87.26 	director of the association of that approval. The benefit plan document modification is 
87.27 	effective on the January 1 following the date of filing the approval with the association.

87.28 	Sec. 5. Minnesota Statutes 2024, section 353G.17, subdivision 4, is amended to read:
87.29 		Subd. 4.Transfer process. (a) Upon completion of the actions required under 
87.30 	subdivisions 1 to 3, the plan shall transfer to the relief association as of the effective date 
87.31 	identified in the notice under subdivision 1, the records, assets, and liabilities related to the 
87.32 	former and current firefighters with benefits under the plan, along with any assets in excess 
87.33 	of liabilities credited to the lump-sum account or the monthly benefit retirement account 
87.34 	attributable to the firefighters and the municipality.
88.1 	(b) The executive director:
88.2 	(1) shallmust transfer the assets in cash;
88.3 	(2) shallmust transfer any accounts receivable associated with the lump-sum account 
88.4 	or monthly benefit retirement account;
88.5 	(3) shallmust settle any accounts payable from the account before the transfer; and
88.6 	(4) may deduct from the assets to be transferred reasonable costs incurred by the plan 
88.7 	to conduct the voting process and complete the transfer.

88.8 	Sec. 6. Minnesota Statutes 2024, section 353G.17, subdivision 5, is amended to read:
88.9 		Subd. 5.Relief association obligations and rights upon transfer from the plan. (a) 
88.10 	Upon transfer of the assets of the lump-sum account or monthly benefit retirementfire 
88.11 	department account, the pension liabilities attributable to the benefits for the former and 
88.12 	current firefighters shall become the obligation of the special fund of the relief association.
88.13 	(b) Upon the transfer of the assets of the lump-sum account or monthly benefit retirement
88.14 	fire department account, the board of trustees of the relief association has legal title to and 
88.15 	management responsibility for the transferred assets as trustees for persons having a beneficial 
88.16 	interest in those assets arising out of the benefit coverage provided by the account.
88.17 	(c) The relief association is the successor in interest with respect to all claims against 
88.18 	the plan relating to the transferred lump-sum account or monthly benefit retirementfire 
88.19 	department account, except for claims alleging any act or acts by the plan or its fiduciaries 
88.20 	that were not done in good faith or that constituted a breach of fiduciary responsibility under 
88.21 	chapter 356A.
88.22 	(d) The value of each volunteer firefighter's benefit in the plan on the day before the 
88.23 	asset transfer shall be no less than the value of the volunteer firefighter's benefit on the day 
88.24 	after the asset transfer. The relief association shall give credit, with respect to each firefighter 
88.25 	whose benefit is being transferred, for all past service, including service credit with the plan 
88.26 	and with any predecessor relief association, to the extent credit is given for such service in 
88.27 	the records of the plan for that firefighter.
88.28 	(e) Upon completion of the transfer of records, assets, and liabilities, the executive 
88.29 	director shall provide written notice to the state auditor, the commissioner of revenue, and 
88.30 	the secretary of state that the transfer is complete.

89.1 	Sec. 7. Minnesota Statutes 2024, section 353G.19, subdivision 1, is amended to read:
89.2 		Subdivision 1.Authority to initiate conversion. (a) A participating employer associated 
89.3 	with a fire department covered by the defined benefit plan, including an entity previously 
89.4 	affiliated with a defined benefit relief association when the entity made a request for coverage 
89.5 	by the defined contribution plan under section 353G.05, subdivision 1b, paragraph (c), may 
89.6 	convert to coverage by the defined contribution plan in accordance with this section.
89.7 	(b) Conversion from coverage by the defined benefit plan to coverage by the defined 
89.8 	contribution plan consists of:
89.9 	(1) a resolution by the governing body of the participating employer;
89.10 	(2) notice to all former and active volunteer firefighters of the fire department;
89.11 	(3) full vesting on the conversion effective date of all active and former volunteer 
89.12 	firefighters with an accrued benefit in the defined benefit plan attributable to service with 
89.13 	the fire department, to the extent funded as of the conversion effective date; and
89.14 	(4) allocation of surplus over full funding, if any, to individual accounts in the fire 
89.15 	department's new account in the defined contribution plan.
89.16 	(c) For an entity previously affiliated with a defined benefit relief association when the 
89.17 	entity made a request for coverage by the defined contribution plan under section 353G.05, 
89.18 	subdivision 1b, paragraph (c), a conversion must occur under paragraph (b) immediately 
89.19 	after coverage by the retirement plan of the entity's fire department and the entity's volunteer 
89.20 	firefighters takes effect.

89.21 	Sec. 8. Minnesota Statutes 2024, section 353G.19, subdivision 2, is amended to read:
89.22 		Subd. 2.Resolutions by the governing body. To initiate a conversion, the governing 
89.23 	body of the participating employer must file with the executive director at least 30 days 
89.24 	before the end of a calendar year:
89.25 	(1) a resolution that states that the fire department elects to participate in the defined 
89.26 	contribution plan effective on the conversion effective date, which is the first day of the 
89.27 	next calendar year; and
89.28 	(2) if, as of the valuation immediately preceding the conversion effective date, the fire 
89.29 	department account had a deficit from full funding as defined under section 353G.08, 
89.30 	subdivision 1, paragraph (c), or the special fund of the defined benefit relief association had 
89.31 	a deficit from full funding as defined in section 424A.092, subdivision 3, paragraph (b), a 
89.32 	resolution approving a contribution to the retirement plan in the amount necessary to 
90.1 	eliminate the deficit, which is to be paid within 30 days of the filing of the resolution or in 
90.2 	installments over three years, with the first payment to be made within 30 days of the filing 
90.3 	of the resolution.

90.4 	Sec. 9. Minnesota Statutes 2024, section 353G.19, subdivision 3, is amended to read:
90.5 		Subd. 3.Notice to participants. The participating employer must provide notice to all 
90.6 	active and former volunteer firefighters in the fire department at least 30 days before the 
90.7 	conversion effective date. The notice must include:
90.8 	(1) an explanation that the plan is converting from a defined benefit plan to a defined 
90.9 	contribution plan, including definitions of those terms, on the conversion effective date and 
90.10 	that the active and former volunteer firefighters will become fully vested in their accrued 
90.11 	benefit to the extent funded as of the conversion effective date;
90.12 	(2) a summary of the terms of the defined contribution plan;
90.13 	(3) a section tailored to each volunteer firefighter that provides an estimate of the present 
90.14 	value of the participant's fully vested accrued benefit and the calculation that resulted in 
90.15 	that value;
90.16 	(4) an estimate of any anticipated surplus and an explanation of the allocation of the 
90.17 	surplus; and
90.18 	(5) contact information for the chief administrative officer or chief financial officer of 
90.19 	the participating employer and the designated staff member of the retirement plan who will 
90.20 	answer questions and directions to a website.

90.21 	Sec. 10. Minnesota Statutes 2024, section 353G.19, subdivision 4, is amended to read:
90.22 		Subd. 4.Full vesting and determination of accrued benefit. (a) On the conversion 
90.23 	effective date, each active or former volunteer firefighter with a retirement benefit under 
90.24 	the defined benefit plan, except any retiree in pay status who is receiving a monthly benefit, 
90.25 	becomes 100 percent vested or, if the defined benefit plan does not have sufficient assets 
90.26 	to fund 100 percent vesting, as close to 100 percent vested as the funding permits, as of the 
90.27 	conversion effective date in the firefighter's retirement benefit, without regard to the number 
90.28 	of years of vesting service credit.
90.29 	(b) The executive director must determine the present value of each active or former 
90.30 	firefighter's accrued benefit as of the conversion effective date, taking into account the full 
90.31 	vesting requirement under paragraph (a).

91.1 	Sec. 11. Minnesota Statutes 2024, section 353G.19, subdivision 5, is amended to read:
91.2 		Subd. 5.Surplus over full funding. If the fire department account has a surplus over 
91.3 	full funding, as defined under section 353G.08, subdivision 1, paragraph (c), the executive 
91.4 	director must allocate the surplus over full funding to the individual account of each active 
91.5 	and former volunteer firefighter, except any former volunteer firefighter receiving an annuity,
91.6 	in the same proportion that the volunteer firefighter's accrued benefit bears to the total 
91.7 	accrued benefits of all active and former volunteer firefighters.

91.8 	Sec. 12. EFFECTIVE DATE.
 91.9 	Sections 1 to 11 are effective the day following final enactment.

91.10 	ARTICLE 14
91.11 	IRAP TO TRA TRANSFERS

91.12 	Section 1. Minnesota Statutes 2024, section 354B.215, subdivision 3, is amended to read:
91.13 		Subd. 3.Eligible person. (a) An eligible person is a person who:
91.14 	(1) is employed by Minnesota State;
91.15 	(2) has an account in the individual retirement account plan; and
91.16 	(3) satisfieswas previously eligible to elect coverage by the Teachers Retirement 
91.17 	Association under one or more sections of chapter 354B or any prior version of chapter 
91.18 	354B; and
91.19 	(4) is not disqualified because Minnesota State produces one or more of the items listed 
91.20 	in paragraph (b).
91.21 	(b) A person satisfies this paragraph is not an eligible person if Minnesota State is not 
91.22 	able to produceproduces at least one of the following items by the end of the 60-day 75-day
91.23 	period under subdivision 4, paragraph (b):
91.24 	(1) a record indicating that the person received notice regarding the person's eligibility 
91.25 	to elect prospective coverage by the Teachers Retirement Association within the election 
91.26 	period under section 354B.211, subdivision 4 or 6, or its predecessor during the person's 
91.27 	first year of eligibility to participate in the individual retirement account plan;
91.28 	(2) a record indicating that the person received notice regarding the person's eligibility 
91.29 	to elect coverage by the Teachers Retirement Association during the person's first year after 
91.30 	attaining tenure or comparable permanent status;
92.1 	(2) (3) a record that the person elected retirement coverage by the individual retirement 
92.2 	account plan; or
92.3 	(3) (4) other credible documentation demonstrating that the person was aware of the 
92.4 	person's right to elect retirement coverage by the Teachers Retirement Association.
92.5 	(c) The record described in paragraph (b), clause (1), is not effective to disqualify a 
92.6 	person if the person was eligible to elect coverage by the Teachers Retirement Association 
92.7 	during the person's first year after attaining tenure or comparable permanent status.

92.8 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2025.

92.9 	Sec. 2. Minnesota Statutes 2024, section 354B.215, subdivision 4, is amended to read:
92.10 		Subd. 4.Eligible person application; information required from Minnesota State. (a) 
92.11 	To elect coverage by the Teachers Retirement Association, an eligible person must submit 
92.12 	a written application to the chancellor on a form provided by Minnesota State. The application 
92.13 	must include:
92.14 	(1) an attestation that the person was not informed of the right to elect a transfer from 
92.15 	the individual retirement account plan to the Teachers Retirement Association and the person 
92.16 	was unaware of the right to elect such a transfer;
92.17 	(2) the date on which the person first became a participant in the individual retirement 
92.18 	account plan;
92.19 	(3) a signed release authorizing Minnesota State to provide employment and other 
92.20 	personnel information to the Teachers Retirement Association; and
92.21 	(4) any other information that Minnesota State may require.
92.22 	(b) No later than 60 75 days after receipt of the application under paragraph (a), Minnesota 
92.23 	State must verify the information provided by the person in the application, determine 
92.24 	whether the person is an eligible person under subdivision 3, and provide a written response 
92.25 	to the person regarding the determination of eligibility. If Minnesota State determines that 
92.26 	the person is not an eligible person, Minnesota State must specify the reason or reasons for 
92.27 	its determination and, if applicable, include a copy of any documentation identified in 
92.28 	subdivision 3, paragraph (b), in its written response to the person.
92.29 	(c) If Minnesota State determines that the person is an eligible person under subdivision 
92.30 	3, Minnesota State must forward to the executive director:
92.31 	(1) the application;
93.1 	(2) confirmation or modification of the information provided by the eligible person in 
93.2 	the application;
93.3 	(3) salary history for the eligible person;
93.4 	(4) an estimate of the amount available for transfer from the eligible person's account 
93.5 	in the individual retirement account plan to the Teachers Retirement Association; and
93.6 	(5) any other relevant information.

93.7 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2025.

93.8 	ARTICLE 15
93.9 	FIRE AND POLICE STATE AID

93.10 	Section 1. Minnesota Statutes 2024, section 423A.022, subdivision 2, is amended to read:
93.11 		Subd. 2.Allocation. (a) Of the total amount appropriated as supplemental state aid:
93.12 	(1) 58.064 percent must be paid to the executive director of the Public Employees 
93.13 	Retirement Association for deposit in the public employees police and fire retirement fund 
93.14 	established by section 353.65, subdivision 1;
93.15 	(2) 35.484 percent must be paid to municipalities other than municipalities solely 
93.16 	employing firefighters with retirement coverage provided by the public employees police 
93.17 	and fire retirement plan whichone or more pension plans established under chapter 353, if 
93.18 	the municipality qualified to receive fire state aid in that calendar year, allocated in the same 
93.19 	proportion tothat the most recent amount of fire state aid paid under section 477B.04, for 
93.20 	the municipality bears to the most recent total fire state aid paid under section 477B.04 for 
93.21 	all municipalities other than the municipalities solely employing firefighters with retirement 
93.22 	coverage provided by the Public Employees police and fire Retirement plan paid under 
93.23 	section 477B.04, with the allocated amount for fire departments participating in the statewide 
93.24 	lump-sum volunteer firefighter plan paid to the executive director of the Public Employees 
93.25 	Retirement Association for deposit in the fund established by section 353G.02, subdivision 
93.26 	3, and credited to the respective account and with the balance paid to the treasurer of each 
93.27 	municipality for transmittal within 30 days of receipt to the treasurer of the applicable 
93.28 	firefighters relief association for deposit in its special fund one or more pension plans 
93.29 	established under chapter 353; and
93.30 	(3) 6.452 percent must be paid to the executive director of the Minnesota State Retirement 
93.31 	System for deposit in the state patrol retirement fund.
94.1 	(b) The allocated amount under paragraph (a), clause (2), must be paid: (i) to the executive 
94.2 	director of the Public Employees Retirement Association for each fire department 
94.3 	participating in the statewide volunteer firefighter plan for deposit in the fund established 
94.4 	by section 352G.02, subdivision 3, and credited to the fire department's account; and (ii) 
94.5 	with the balance to the treasurer of each municipality for transmittal within 30 days of 
94.6 	receipt to the treasurer of the applicable firefighters relief association for deposit in its 
94.7 	special fund.
94.8 	(b) (c) For purposes of this section, the term "municipalities" includes independent 
94.9 	nonprofit firefighting corporations that participate in the statewide lump-sum volunteer 
94.10 	firefighter plan under chapter 353G or with subsidiary volunteer firefighter relief associations 
94.11 	operating under chapter 424A.

94.12 	Sec. 2. Minnesota Statutes 2024, section 423A.022, subdivision 3, is amended to read:
94.13 		Subd. 3.Reporting.  On or before September 1, annually, the executive director of the 
94.14 	Public Employees Retirement Association shall report to the commissioner of revenue the 
94.15 	following:
94.16 	(1) the municipalities which that employ firefighters with retirement coverage by the 
94.17 	public employees police and fire retirement plan;
94.18 	(2) the municipalities that employ firefighters with retirement coverage by the general 
94.19 	employees retirement plan;
94.20 	(2)(3) the fire departments covered by the statewide lump-sum volunteer firefighter 
94.21 	plan; and
94.22 	(3)(4) any other information requested by the commissioner to administer the police 
94.23 	and firefighter retirement supplemental state aid program.

94.24 	Sec. 3. Minnesota Statutes 2024, section 424A.014, subdivision 5, is amended to read:
94.25 		Subd. 5.Report by certain municipalities; exceptions. (a) The chief administrative 
94.26 	officer of each municipality that has a fire department but does not have a relief association 
94.27 	governed by sections 424A.091 to 424A.095 or Laws 2014, chapter 275, article 2, section 
94.28 	23, and that is not exempted under paragraph (b) or (c) must annually prepare a detailed 
94.29 	financial report of the receipts and disbursements by the municipality for fire protection 
94.30 	service during the preceding calendar year on a form prescribed by the state auditor. The 
94.31 	financial report must contain any information that the state auditor deems necessary to 
94.32 	disclose the sources of receipts and the purpose of disbursements for fire protection service. 
95.1 	The financial report must be signed by the municipal clerk or clerk-treasurer with the state 
95.2 	auditor on or before July 1 annually. The municipality does not qualify initially to receive, 
95.3 	and is not entitled subsequently to retain, any fire state aid and police and firefighter 
95.4 	retirement supplemental state aid payable under chapter 477B and section 423A.022 if the 
95.5 	financial reporting requirement or the applicable requirements of any other statute or special 
95.6 	law have not been complied with or are not fulfilled.
95.7 	(b) Each municipality that has a fire department and provides retirement coverage to its 
95.8 	firefighters through the statewide volunteer firefighter plan under chapter 353G qualifies 
95.9 	to have fire state aid transmitted to and retained in the statewide volunteer firefighter 
95.10 	retirement fund without filing a detailed financial report if the executive director of the 
95.11 	Public Employees Retirement Association certifies compliance by the municipality with 
95.12 	the requirements of sections 353G.04 and 353G.08, subdivision 1, paragraph (e), and certifies 
95.13 	compliance by the applicable fire chief with the requirements of section 353G.07.
95.14 	(c) Each municipality qualifies to receive fire state aid under chapter 477B without filing 
95.15 	a financial report under paragraph (a) if the municipality:
95.16 	(1) has a fire department;
95.17 	(2) does not have a firefighters relief association directly associated with its fire 
95.18 	department;
95.19 	(3) does not participate in the statewide volunteer firefighter retirement plan under 
95.20 	chapter 353G;
95.21 	(4) provides retirement coverage to its firefighters through the general employees 
95.22 	retirement plan under chapter 353 or the public employees police and fire retirement plan 
95.23 	under sections 353.63 to 353.68; and
95.24 	(5) is certified by the executive director of the Public Employees Retirement Association 
95.25 	to the state auditor to have had an employer contribution under section 353.27, subdivisions 
95.26 	3 and 3a, or353.65, subdivision 3, for its firefighters for the immediately prior calendar 
95.27 	year equal to or greater than its fire state aid for the immediately prior calendar year.

95.28 	Sec. 4. Minnesota Statutes 2024, section 424A.08, is amended to read:
95.29 	424A.08 MUNICIPALITY WITHOUT RELIEF ASSOCIATION; AUTHORIZED 
95.30 	DISBURSEMENTS.
95.31 	(a) AnyA municipality whichthat is entitled to receive fire state aid but which has no
95.32 	must deposit the fire state aid in a special account established for that purpose in the 
96.1 	municipal treasury and disburse the fire state aid in accordance with paragraph (b) or (c), 
96.2 	as applicable, if the municipality's fire department is not directly associated with a firefighters 
96.3 	relief association directly associated with its fire department and whichis not a participating 
96.4 	employer in the statewide volunteer firefighter plan under chapter 353G.
96.5 	(b) If the municipality has no full-time firefighters with retirement coverage by the public 
96.6 	employees police and fire retirement plan shall deposit the fire state aid in a special account 
96.7 	established for that purpose in the municipal treasury. Disbursementand no part-time 
96.8 	firefighters with retirement coverage by the general employees retirement plan under chapter 
96.9 	353, the municipality must not disburse fire state aid from the special account may not be 
96.10 	made for any purpose except:
96.11 	(1) payment of the fees, dues and assessments to the Minnesota State Fire Department 
96.12 	Association and to the state Volunteer Firefighters Benefit Association in order to entitle 
96.13 	its firefighters to membership in and the benefits of these state associations;
96.14 	(2) payment of the cost of purchasing and maintaining needed equipment for the fire 
96.15 	department; and
96.16 	(3) payment of the cost of construction, acquisition, repair, or maintenance of buildings 
96.17 	or other premises to house the equipment of the fire department.
96.18 	(b) A(c) If the municipality which is entitled to receive fire state aid, which has no 
96.19 	firefighters relief association directly associated with its fire department, which does not 
96.20 	participate in the statewide volunteer firefighter plan under chapter 353G, and which has 
96.21 	full-time firefighters with retirement coverage by the public employees police and fire 
96.22 	retirement plan or part-time firefighters with retirement coverage by the general employees 
96.23 	retirement plan or both full-time and part-time firefighters with the applicable retirement 
96.24 	coverage, the municipality may disburse the fire state aid as:
96.25 	(1) as provided in paragraph (a),(b);
96.26 	(2) for the payment of the employer contribution requirement with respect tocontributions 
96.27 	under section 353.65, subdivision 3, for any firefighters covered by the public employees 
96.28 	police and fire retirement plan under section 353.65, subdivision 3,;
96.29 	(3) for the payment of employer contributions for any firefighters covered by the general 
96.30 	employees retirement plan under section 353.27, subdivisions 3 and 3a; or
96.31 	(4) for a combination of the two types of disbursements payments authorized under 
96.32 	clauses (1) to (3).
97.1 	(c)(d) A municipality that has no firefighters relief association directly associated with 
97.2 	it and that participates in the statewide volunteer firefighter plan under chapter 353G shall 
97.3 	transmit any fire state aid that it receives to the statewide volunteer firefighter fund.

97.4 	Sec. 5. Minnesota Statutes 2024, section 477B.02, subdivision 3, is amended to read:
97.5 		Subd. 3. Benefits requirements. (a) The fire department must:
97.6 	(1) be associated with a firefighters relief association that provides retirement benefits;
97.7 	(2) participate in and have firefighters receiving credit for service toward a retirement 
97.8 	benefit under the statewide volunteer firefighter plan;
97.9 	(3) have retirement coverage under the public employees police and fire retirement plan 
97.10 	or the Public Employees Retirement Association general employees retirement plan for the 
97.11 	fire department's full-time firefighters, as defined in section 299N.03, subdivision 5, or the 
97.12 	fire department's part-time firefighters, or the fire department'sboth full-time firefighters 
97.13 	and part-time firefighters; or
97.14 	(4) satisfy either clauses (1) and (3) or clauses (2) and (3).
97.15 	(b) For purposes of retirement benefits, a fire department may be associated with only 
97.16 	one firefighters relief association or one account in the statewide firefighters retirement plan 
97.17 	at one time.
97.18 	(c) Notwithstanding paragraph (a), a municipality without a relief association as described 
97.19 	under section 424A.08, paragraph (a), may still qualify to receive fire state aid if all other 
97.20 	requirements of this section are met.

97.21 	Sec. 6. Minnesota Statutes 2024, section 477B.02, subdivision 8, is amended to read:
97.22 		Subd. 8.PERA certification to commissioner. (a) On or before February 1 each year, 
97.23 	the executive director of the Public Employees Retirement Association must certify to the 
97.24 	commissioner the fire departments that transferred retirement coverage to, or terminated 
97.25 	participation in, the voluntary statewide volunteer firefighter retirement plan since the 
97.26 	previous certification under this paragraph. This certification must include the number of 
97.27 	active volunteer firefighters under section 477B.03, subdivision 5, paragraph (e).
97.28 	(b) On or before February 1 each year, the executive director of the Public Employees 
97.29 	Retirement Association must certify to the commissioner:
98.1 	(1) the fire departments that participate in the statewide volunteer firefighter plan and 
98.2 	have no firefighters receiving credit for service toward a retirement benefit under the 
98.3 	statewide volunteer firefighter plan; and
98.4 	(2) the fire departments that employ part-time firefighters who are covered by the general 
98.5 	employees retirement plan.

98.6 	Sec. 7. Minnesota Statutes 2024, section 477B.03, subdivision 5, is amended to read:
98.7 		Subd. 5.Minimum fire state aid allocation amount. (a) The minimum fire state aid 
98.8 	allocation amount is the amount derived from any additional funding amount to support a 
98.9 	minimum fire state aid amount under section 423A.02, subdivision 3. The minimum fire 
98.10 	state aid allocation amount is allocated to municipalities or independent nonprofit firefighting 
98.11 	corporations with volunteer firefighters' relief associations or covered by the statewide 
98.12 	volunteer firefighter plan. The amount is based on the number of active volunteer firefighters 
98.13 	who are (1) members of the relief association as reported to the Office of the State Auditor 
98.14 	in a specific annual financial reporting year as specified in paragraphs (b) to (d), or (2) 
98.15 	covered by the statewide volunteer firefighter plan as specified in paragraph (e).
98.16 	(b) For relief associations established in calendar year 1993 or a prior year, the number 
98.17 	of active volunteer firefighters equals the number of active volunteer firefighters who were 
98.18 	members of the relief association as reported in the annual financial reporting for calendar 
98.19 	year 1993, but not to exceed 30 active volunteer firefighters.
98.20 	(c) For relief associations established in calendar year 1994 through calendar year 1999, 
98.21 	the number of active volunteer firefighters equals the number of active volunteer firefighters 
98.22 	who were members of the relief association as reported in the annual financial reporting for 
98.23 	calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer
98.24 	firefighters.
98.25 	(d) For relief associations established after calendar year 1999, the number of active 
98.26 	volunteer firefighters equals the number of active volunteer firefighters who are members 
98.27 	of the relief association as reported in the first annual financial reporting submitted to the 
98.28 	Office of the State Auditor, but not to exceed 20 active volunteer firefighters.
98.29 	(e) For a municipality or independent nonprofit firefighting corporation that is providing 
98.30 	retirement coverage for volunteer firefighters by the statewide volunteer firefighter plan 
98.31 	under chapter 353G, the number of active volunteer firefighters equals the number of active 
98.32 	volunteer firefighters of the municipality or independent nonprofit firefighting corporation 
98.33 	covered by the statewide plan as certified by the executive director of the Public Employees 
99.1 	Retirement Association to the commissioner and the state auditor within 30 days of the date 
99.2 	the municipality or independent nonprofit firefighting corporation begins coverage in the 
99.3 	plan, but not to exceed 30 active firefighters.

99.4 	Sec. 8. Minnesota Statutes 2024, section 477B.03, subdivision 7, is amended to read:
99.5 		Subd. 7.Appeal. A municipality, an independent nonprofit firefighting corporation, a 
99.6 	firefirefighter relief association, or the statewide volunteer firefighter plan may object to 
99.7 	the amount of fire state aid apportioned to it by filing a written request with the commissioner 
99.8 	to review and adjust the apportionment of funds within the state. The objection of a 
99.9 	municipality, an independent nonprofit firefighting corporation, a firefirefighter relief 
99.10 	association, or the voluntary statewide volunteer firefighter retirement plan must be filed 
99.11 	with the commissioner within 60 days of the date the amount of apportioned fire state aid 
99.12 	is paid. The decision of the commissioner is subject to appeal, review, and adjustment by 
99.13 	the district court in the county in which the applicable municipality or independent nonprofit 
99.14 	firefighting corporation is located or by the Ramsey County District Court with respect to 
99.15 	the statewide volunteer firefighter plan.

99.16 	Sec. 9. Minnesota Statutes 2024, section 477B.04, subdivision 3, is amended to read:
99.17 		Subd. 3.Deposit of state aid. (a) This paragraph applies if the municipality or the 
99.18 	independent nonprofit firefighting corporation ishas firefighters covered by the statewide 
99.19 	volunteer firefighter plan. If this paragraph applies and the executive director of the Public 
99.20 	Employees Retirement Association has not approved an aid allocation plan under section 
99.21 	477B.041, the executive director must credit the fire state aid against future municipal 
99.22 	contribution requirements under section 353G.08 and must notify the municipality or the 
99.23 	independent nonprofit firefighting corporation of the fire state aid so credited at least 
99.24 	annually. If this paragraph applies and the executive director has approved an aid allocation 
99.25 	plan under section 477B.041, the executive director must allocate fire state aid in the manner 
99.26 	described under section 477B.041.
99.27 	(b) If (1) the municipality or the independent nonprofit firefighting corporation isdoes 
99.28 	not have firefighters covered by the statewide volunteer firefighter plan and is affiliated 
99.29 	with a duly incorporated firefighters relief association, (2) the relief association has filed a 
99.30 	financial report with the municipality pursuant to section 424A.014, subdivision 1 or 2, 
99.31 	whichever applies, and (3) there is not an aid allocation agreement under section 477B.042 
99.32 	in effect, then the treasurer of the municipality must, within 30 days after receipt, transmit 
99.33 	the fire state aid to the treasurer of the relief association. If clauses (1) and (2) are satisfied 
100.1 	and there is an aid allocation agreement under section 477B.042 in effect, then fire state aid 
100.2 	must be transmitted as described in that section. If the relief association has not filed a 
100.3 	financial report with the municipality, then, regardless of whether an aid allocation agreement 
100.4 	is in effect, the treasurer of the municipality must delay transmission of the fire state aid to 
100.5 	the relief association until the complete financial report is filed.
100.6 	(c) The treasurer of the municipality must deposit the fire state aid money in the municipal 
100.7 	treasury if (1) the municipality or independent nonprofit firefighting corporation isdoes not 
100.8 	have firefighters covered by the statewide volunteer firefighter plan, (2) there is no relief 
100.9 	association organized, (3) the association has dissolved, or (4) the association has been 
100.10 	removed as trustees of state aid. The money may be disbursed from the municipal treasury 
100.11 	only for the purposes and in the manner set forth in section 424A.08 or for the payment of 
100.12 	the employer contribution requirement with respect to firefighters covered by the public 
100.13 	employees police and fire retirement plan under section 353.65, subdivision 3.

100.14 	Sec. 10. Minnesota Statutes 2024, section 477B.04, subdivision 4, is amended to read:
100.15 		Subd. 4.Aid amount corrections. (a) AnThe commissioner must make any adjustment 
100.16 	needed to correct a fire state aid overpayment or underpayment due to a clerical error must 
100.17 	be made to subsequent fire state aid payments as provided in paragraphs (b) and (c). The 
100.18 	commissioner's authority to correct an aid payment under this subdivision is limited to three 
100.19 	years after the payment was issued.
100.20 	(b) If an overpayment equals more than ten percent of the most recently paid aid amount, 
100.21 	the commissioner must reduce the aid a municipality or independent nonprofit firefighting 
100.22 	corporation is to receive by the amount overpaid over a period of no more than three years. 
100.23 	If an overpayment equals or is less than ten percent of the most recently paid aid amount, 
100.24 	the commissioner must reduce the next aid payment occurring in 30 days or more by the 
100.25 	amount overpaid.
100.26 	(c) In the event of an underpayment, the commissioner must distribute the amount of 
100.27 	underpaid funds to the municipality or independent nonprofit firefighting corporation over 
100.28 	a period of no more than three years. An additional distribution to a municipality or 
100.29 	independent nonprofit firefighting corporation must be paid from the general fund and must 
100.30 	not diminish the payments made to other municipalities or independent nonprofit firefighting 
100.31 	corporations under this chapter.

100.32 	Sec. 11. EFFECTIVE DATE.
 100.33 	Sections 1 to 10 are effective beginning with aids payable in 2026.

101.1 	ARTICLE 16
101.2 	STATE BOARD OF INVESTMENT

101.3 	Section 1. Minnesota Statutes 2024, section 11A.07, subdivision 4, is amended to read:
101.4 		Subd. 4.Duties and powers. The director, at the direction of the state board, shall:
101.5 	(1) plan, direct, coordinate, and execute administrative and investment functions in 
101.6 	conformity with the policies and directives of the state board and the requirements of this 
101.7 	chapter and of chapter 356A;
101.8 	(2) prepare and submit biennial and annual budgets to the board and with the approval 
101.9 	of the board submit the budgets to the Department of Management and Budget;
101.10 	(3) employ professional and clerical staff as necessary;
101.11 	(4) report to the state board on all operations under the director's control and supervision;
101.12 	(5) maintain accurate and complete records of securities transactions and official 
101.13 	activities;
101.14 	(6) establish a policy, which is subject to state board approval, relating to the purchase 
101.15 	and sale of securities on the basis of competitive offerings or bids;
101.16 	(7) cause securities acquired to be kept in the custody of the commissioner of management 
101.17 	and budget or other depositories consistent with chapter 356A, as the state board deems 
101.18 	appropriate;
101.19 	(8) prepare and file with the director of the Legislative Reference Library, by December 
101.20 	31 of each year, a report summarizing the activities of the state board, the council, and the 
101.21 	director during the preceding fiscal year;
101.22 	(9) include on the state board's website its annual report and an executive summary of 
101.23 	its quarterly reports;
101.24 	(10) require state officials from any department or agency to produce and provide access 
101.25 	to any financial documents the state board deems necessary in the conduct of its investment 
101.26 	activities;
101.27 	(11) receive and expend legislative appropriations; and
101.28 	(12) undertake any other activities necessary to implement the duties and powers set 
101.29 	forth in this subdivision consistent with chapter 356A.

102.1 	Sec. 2. Minnesota Statutes 2024, section 11A.07, subdivision 4b, is amended to read:
102.2 		Subd. 4b.Annual report. The report required under subdivision 4, clause (8), must 
102.3 	include an executive summary, must be prepared and filed after the completion of the 
102.4 	applicable fiscal year audit but no later than March 31 of each year, and must be prepared 
102.5 	so as to provide the legislature and the people of the state with:
102.6 	(1) a clear, comprehensive summary of the portfolio composition, the transactions, the 
102.7 	total annual rate of return, and the yield to the state treasury and to each of the funds with 
102.8 	assets invested by the state board; and
102.9 	(2) the recipients of business placed or commissions allocated among the various 
102.10 	commercial banks, investment bankers, money managers, and brokerage organizations and 
102.11 	the amount of these commissions or other fees.

102.12 	Sec. 3. REPEALER.
 102.13 	Minnesota Statutes 2024, section 11A.27, is repealed.

102.14 	Sec. 4. EFFECTIVE DATE.
 102.15 	Sections 1 to 3 are effective the day following final enactment.

102.16 	ARTICLE 17
102.17 	PUBLIC EMPLOYEES DEFINED CONTRIBUTION PLAN

102.18 	Section 1. Minnesota Statutes 2024, section 353D.01, subdivision 2, is amended to read:
102.19 		Subd. 2.Eligibility. (a) Eligibility to participate in the plan is available to:
102.20 	(1) any elected or appointed local government official of a governmental subdivision 
102.21 	who elects to participate in the plan under section 353D.02, subdivision 1, and who, for the 
102.22 	service rendered to a governmental subdivision, is not a member of the association within 
102.23 	the meaning of section 353.01, subdivision 7;
102.24 	(2) physicians who, if they did not elect to participate in the plan under section 353D.02, 
102.25 	subdivision 2, would meet the definition of member under section 353.01, subdivision 7;
102.26 	(3) basic and advanced life-support emergency medical service personnel who are 
102.27 	employed by any public ambulance service that elects to participate under section 353D.02, 
102.28 	subdivision 3;
102.29 	(4) members of a municipal rescue squad associated with the city of Litchfield in Meeker 
102.30 	County, or of a county rescue squad associated with Kandiyohi County, if an independent 
103.1 	nonprofit rescue squad corporation, incorporated under chapter 317A, performing emergency 
103.2 	management services, and if not affiliated with a fire department or ambulance service and 
103.3 	if its members are not eligible for membership in that fire department's or ambulance service's 
103.4 	relief association or comparable pension plan;
103.5 	(5) members of the municipal rescue squad associated with the city of Eden Valley in 
103.6 	Stearns and Meeker Counties who are not eligible for membership in the police and fire 
103.7 	retirement plan or a firefighter relief association affiliated with the city and who elect to 
103.8 	participate in the plan under section 353D.02, subdivision 4, paragraph (b);
103.9 	(5) (6) employees of the Port Authority of the city of St. Paul who elect to participate 
103.10 	in the plan under section 353D.02, subdivision 5, and who are not members of the association 
103.11 	under section 353.01, subdivision 7;
103.12 	(6) (7) city managers who elected to be excluded from the general employees retirement 
103.13 	plan of the association under section 353.028 and who elected to participate in the public 
103.14 	employees defined contribution plan under section 353.028, subdivision 3, paragraph (b);
103.15 	(7) (8) volunteer or emergency on-call firefighters serving in a municipal fire department 
103.16 	or an independent nonprofit firefighting corporation who are not covered by the police and 
103.17 	fire retirement plan and who are not covered by a firefighters relief association and who 
103.18 	elect to participate in the public employees defined contribution plan;
103.19 	(8) (9) any elected county sheriff who is a former member of the police and fire plan, 
103.20 	is receiving a retirement annuity as provided under section 353.651, who and does not have 
103.21 	previous employment with the county for which the sheriff was elected; and
103.22 	(9) (10) persons appointed to serve on a board or commission of a governmental 
103.23 	subdivision or an instrumentality thereof.
103.24 	(b) Individuals otherwise eligible to participate in the plan under this subdivision who 
103.25 	are currently covered by a public or private pension plan because of their employment or 
103.26 	provision of services are not eligible to participate in the public employees defined 
103.27 	contribution plan.
103.28 	(c) A former participant is a person who has terminated eligible employment or service 
103.29 	and has not withdrawn the value of the person's individual account.

103.30 	Sec. 2. Minnesota Statutes 2024, section 353D.02, subdivision 4, is amended to read:
103.31 		Subd. 4.Eligible rescue squad personnel members. (a) The municipality or county, 
103.32 	as applicable, associated with a rescue squad under section 353D.01, subdivision 2, paragraph 
104.1 	(a), clause (4), may elect to participate in the plan. If the municipality or county, as applicable, 
104.2 	elects to participate, the eligible personnel may elect to participate or decline to participate. 
104.3 	An eligible individual's election must be made within 30 days of the service's election to 
104.4 	participate or within 30 days of the date on which the individual first began employment 
104.5 	with the rescue squad, whichever is later. Elections under this subdivision by a government 
104.6 	unit or individual are irrevocable. The municipality or county, as applicable, must specify 
104.7 	by resolution eligibility requirements for rescue squad personnel which must be satisfied if 
104.8 	the individual is to be authorized to make the election under this subdivision.
104.9 	(b) An eligible member under section 353D.01, subdivision 2, paragraph (a), clause (5), 
104.10 	may elect to participate or decline to participate in the plan within 30 days of the date on 
104.11 	which the member first begins service with the rescue squad.
104.12 	(c) Elections under this subdivision by a government unit or individual are irrevocable.

104.13 	Sec. 3. EFFECTIVE DATE.
 104.14 	Sections 1 and 2 are effective the day following final enactment.

104.15 	ARTICLE 18
104.16 	MISCELLANEOUS TECHNICAL CORRECTIONS

104.17 	Section 1. Minnesota Statutes 2024, section 124E.12, subdivision 4, is amended to read:
104.18 		Subd. 4.Teacher and other employee retirement. (a) Teachers in a charter school 
104.19 	must be public school teachers for the purposes of chapters 354 and 354A governing the 
104.20 	Teacher Retirement Act.
104.21 	(b) Except for teachers under paragraph (a), employees in a charter school must be public 
104.22 	employees for the purposes of chapter 353 governing the Public Employees Retirement 
104.23 	Act.

104.24 	Sec. 2. Minnesota Statutes 2024, section 124E.12, subdivision 6, is amended to read:
104.25 		Subd. 6.Leave to teach in a charter school. If a teacher employed by a district makes 
104.26 	a written request for an extended leave of absence to teach at a charter school, the district 
104.27 	must grant the leave. The district must grant a leave not to exceed a total of five years. Any 
104.28 	request to extend the leave shall be granted only at the discretion of the school board. The 
104.29 	district may require a teacher to make the request for a leave or extension of leave before 
104.30 	February 1 in the school year preceding the school year in which the teacher intends to 
104.31 	leave, or February 1 of the calendar year in which the teacher's leave is scheduled to 
105.1 	terminate. Except as otherwise provided in this subdivision and section 122A.46, subdivision 
105.2 	7, governing employment in another district, the leave is governed by section 122A.46, 
105.3 	including, but not limited to, reinstatement, notice of intention to return, seniority, salary, 
105.4 	and insurance.
105.5 	During a leave, the teacher may continue to aggregate benefits and creditsearn service 
105.6 	and salary credit toward a pension in the Teachers' Retirement Association accountor the 
105.7 	St. Paul Teachers Retirement Fund Association under chapters 354 and 354A, respectively, 
105.8 	consistent with subdivision 4.

105.9 	Sec. 3. Minnesota Statutes 2024, section 181.101, is amended to read:
105.10 	181.101 WAGES; HOW OFTEN PAID.
105.11 	(a) Except as provided in paragraph (b), every employer must pay all wages, including 
105.12 	salary, earnings, and gratuities earned by an employee at least once every 31 days and all 
105.13 	commissions earned by an employee at least once every three months, on a regular payday 
105.14 	designated in advance by the employer regardless of whether the employee requests payment 
105.15 	at longer intervals. Unless paid earlier, the wages earned during the first half of the first 
105.16 	31-day pay period become due on the first regular payday following the first day of work. 
105.17 	If wages or commissions earned are not paid, the commissioner of labor and industry or the 
105.18 	commissioner's representative may serve a demand for payment on behalf of an employee. 
105.19 	In addition to other remedies under section 177.27, if payment of wages is not made within 
105.20 	ten days of service of the demand, the commissioner may charge and collect the wages 
105.21 	earned at the employee's rate or rates of pay or at the rate or rates required by law, including 
105.22 	any applicable statute, regulation, rule, ordinance, government resolution or policy, contract, 
105.23 	or other legal authority, whichever rate of pay is greater, and a penalty in the amount of the 
105.24 	employee's average daily earnings at the same rate or rates for each day beyond the ten-day 
105.25 	limit following the demand. If payment of commissions is not made within ten days of 
105.26 	service of the demand, the commissioner may charge and collect the commissions earned 
105.27 	and a penalty equal to 1/15 of the commissions earned but unpaid for each day beyond the 
105.28 	ten-day limit. Money collected by the commissioner must be paid to the employee concerned. 
105.29 	This section does not prevent an employee from prosecuting a claim for wages. This section 
105.30 	does not prevent a school district, other public school entity, or other school, as defined 
105.31 	under section 120A.22, from paying any wages earned by its employees during a school 
105.32 	year on regular paydays in the manner provided by an applicable contract or collective 
105.33 	bargaining agreement, or a personnel policy adopted by the governing board. For purposes 
105.34 	of this section, "employee" includes a person who performs agricultural labor as defined in 
106.1 	section 181.85, subdivision 2. For purposes of this section, wages are earned on the day an 
106.2 	employee works. This section provides a substantive right for employees to the payment of 
106.3 	wages, including salary, earnings, and gratuities, as well as commissions, in addition to the 
106.4 	right to be paid at certain times.
106.5 	(b) An employer of a volunteer or paid on-call firefighter, as defined in section 424A.001, 
106.6 	subdivision 10, a member of an organized first responder squad that is formally recognized 
106.7 	by a political subdivision in the state, or a volunteer ambulance driver or attendant must 
106.8 	pay all wages earned by the volunteer firefighter, first responder, or volunteer ambulance 
106.9 	driver or attendant at least once every 31 days, unless the employer and the employee 
106.10 	mutually agree upon payment at longer intervals.

106.11 	Sec. 4. Minnesota Statutes 2024, section 356.633, subdivision 1, is amended to read:
106.12 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
106.13 	the meanings given.
106.14 	(b) "Covered retirement plan" means a pension or retirement plan listed in section 
106.15 	356.611, subdivision 6, and the Minnesota deferred compensation plan established under 
106.16 	section 352.965.
106.17 	(b) (c) "Distributee" means:
106.18 	(1) a member of or participant in a covered retirement plan listed in section 356.611, 
106.19 	subdivision 6;
106.20 	(2) the surviving spouse of a member of or participant in a covered retirement plan;
106.21 	(3) the former spouse of the a member of or participant in a covered retirement plan who 
106.22 	is the alternate payee under a qualified domestic relations order as defined in section 414(p) 
106.23 	of the Internal Revenue Code, or who is a recipient of a court-ordered equitable distribution 
106.24 	of marital property, as provided in section 518.58; or
106.25 	(4) a nonspousal beneficiary of a member of or participant in a covered retirement plan
106.26 	who qualifies for a distribution under the plan and is a designated beneficiary as defined in 
106.27 	section 401(a)(9)(E) of the Internal Revenue Code.
106.28 	(c) (d) "Eligible retirement plan" means:
106.29 	(1) an individual retirement account under section 408(a) or 408A of the Internal Revenue 
106.30 	Code;
106.31 	(2) an individual retirement annuity plan under section 408(b) of the Internal Revenue 
106.32 	Code;
107.1 	(3) an annuity plan under section 403(a) of the Internal Revenue Code;
107.2 	(4) a qualified trust plan under section 401(a) of the Internal Revenue Code that accepts 
107.3 	the distributee's eligible rollover distribution distributions;
107.4 	(5) an annuity contract under section 403(b) of the Internal Revenue Code;
107.5 	(6) an eligible deferred compensation plan under section 457(b) of the Internal Revenue 
107.6 	Code, which including the Minnesota deferred compensation plan, that is maintained by a 
107.7 	state or local government, accepts eligible rollover distributions, and which agrees to 
107.8 	separately account for the amounts transferred into the plan;
107.9 	(7) in the case of an eligible rollover distribution to a if the distributee is a surviving 
107.10 	spouse or nonspousal beneficiary, an individual account or annuity treated as an inherited 
107.11 	individual retirement account under section 402(c)(11) of the Internal Revenue Code; or
107.12 	(8) a savings incentive match plan for employees of small employers (SIMPLE) individual 
107.13 	retirement account under section 408(p) of the Internal Revenue Code, provided that the 
107.14 	rollover distribution is made after the two-year period beginning on the date the distributee 
107.15 	first participated in any qualified salary reduction arrangement maintained by the distributee's 
107.16 	employer under section 408(p)(2) of the Internal Revenue Code, as described in section 
107.17 	72(t)(6) of the Internal Revenue Code.
107.18 	(d) (e) "Eligible rollover distribution" means any distribution of all or any portion of the 
107.19 	balance to the credit of the distributee. An eligible rollover distribution does not include:
107.20 	(1) a distribution that is one of a series of substantially equal periodic payments, 
107.21 	receivable annually or more frequently, that is made for the life or life expectancy of the 
107.22 	distributee, the joint lives or joint life expectancies of the distributee and the distributee's 
107.23 	designated beneficiary, or for a specified period of ten years or more;
107.24 	(2) a distribution that is required under section 401(a)(9) of the Internal Revenue Code; 
107.25 	or
107.26 	(3) a distribution that is less than $200; or
107.27 	(3) (4) any other exception required by law or the Internal Revenue Code.

107.28 	Sec. 5. Minnesota Statutes 2024, section 356.633, subdivision 2, is amended to read:
107.29 		Subd. 2.Right to elect direct rollover. Except as provided in subdivision 3 for after-tax 
107.30 	contributions, a distributee may elect, at the time and in the manner prescribed by the plan 
107.31 	administrator, to have all or any portion of an eligible rollover distribution from a covered 
107.32 	retirement plan paid directly to an eligible retirement plan as specified by the distributee.

108.1 	Sec. 6. Minnesota Statutes 2024, section 356.633, is amended by adding a subdivision to 
108.2 	read:
108.3 		Subd. 4.Notice. A covered retirement plan must provide the distributee of an eligible 
108.4 	rollover distribution from the covered retirement plan with the notice required by section 
108.5 	402(f) of the Internal Revenue Code within the time period prior to making the eligible 
108.6 	rollover distribution, as required by regulations issued pursuant to section 402(f) of the 
108.7 	Internal Revenue Code.

108.8 	Sec. 7. [356.638] MILITARY SERVICE.
108.9 	A covered retirement plan as defined in section 356.633, subdivision 1, paragraph (b), 
108.10 	must require contributions and provide benefits, including death and disability benefits 
108.11 	under section 401(a)(37) of the Internal Revenue Code, and service credit with respect to 
108.12 	qualified military service according to section 414(u) of the Internal Revenue Code. If a 
108.13 	member dies while the member is performing qualified military service as defined in United 
108.14 	States Code, title 38, chapter 43, to the extent required by section 401(a)(37) of the Internal 
108.15 	Revenue Code, survivors of the member are entitled to any additional benefits that the 
108.16 	covered retirement plan would have provided if the member had resumed employment and 
108.17 	then died, including but not limited to accelerated vesting or survivor benefits that are 
108.18 	contingent on the member's death while employed. A deceased member's period of qualified 
108.19 	military service must be counted for vesting purposes.

108.20 	Sec. 8. Minnesota Statutes 2024, section 424B.22, subdivision 1, is amended to read:
108.21 		Subdivision 1.Application. (a) Notwithstanding any laws to the contrary, this section 
108.22 	applies to:
108.23 	(1) the termination of a retirement plan established and administered by a relief 
108.24 	association, whether or not the relief association is also dissolved or eliminated; and
108.25 	(2) the dissolution of a relief association that is not consolidating with another relief 
108.26 	association under sections 424B.01 to 424B.10.
108.27 	(b) This section does not apply to the dissolution of a relief association or the termination 
108.28 	of a retirement plan that occurs due to the change in retirement coverage from a retirement 
108.29 	plan administered by a relief association to the Public Employees Retirement Association 
108.30 	statewide volunteer firefighter plan under section 353G.06.
108.31 	(b) To terminate a retirement plan, the board of trustees must comply with subdivisions 
108.32 	3, 5 to 11, and, if desired, subdivision 4.
109.1 	(c) To dissolve a relief association, the board of trustees of the relief association must:
109.2 	(1) terminate the retirement plan in accordance with paragraph (b);
109.3 	(2) determine all legal obligations of the special and general funds of the relief association, 
109.4 	as required by subdivision 5;
109.5 	(3) take the actions required by subdivision 12; and
109.6 	(4) comply with the requirements governing dissolution of nonprofit corporations under 
109.7 	chapter 317A.
109.8 	(d) A relief association that terminates its retirement plan must liquidate its special fund 
109.9 	as provided in subdivision 8, but need not liquidate its general fund if the relief association 
109.10 	is not being dissolved.

109.11 	Sec. 9. Minnesota Statutes 2024, section 424B.22, is amended by adding a subdivision to 
109.12 	read:
109.13 		Subd. 1a.Voluntary dissolution and termination. (a) To terminate a retirement plan, 
109.14 	the board of trustees must comply with subdivisions 3, 5 to 11, and, if desired, 4.
109.15 	(b) To dissolve a relief association, the board of trustees of the relief association must:
109.16 	(1) terminate the retirement plan in accordance with paragraph (a);
109.17 	(2) determine all legal obligations of the special and general funds of the relief association, 
109.18 	as required by subdivision 5;
109.19 	(3) take the actions required by subdivision 12; and
109.20 	(4) comply with the requirements governing dissolution of nonprofit corporations under 
109.21 	chapter 317A.
109.22 	(c) A relief association that terminates its retirement plan must liquidate its special fund 
109.23 	as provided in subdivision 8, but need not liquidate its general fund if the relief association 
109.24 	is not being dissolved.

109.25 	Sec. 10. Minnesota Statutes 2024, section 424B.22, subdivision 2, is amended to read:
109.26 		Subd. 2.Involuntary dissolution and termination. (a) A relief association is dissolved 
109.27 	and the retirement plan administered by the relief association is terminated automatically 
109.28 	if:
109.29 	(1) the fire department affiliated with a relief association is dissolved by action of the 
109.30 	governing body of the municipality in which the fire department is located or by the 
110.1 	governing body of the independent nonprofit firefighting corporation, whichever applies; 
110.2 	or
110.3 	(2) the fire department affiliated with a relief association has terminated the employment 
110.4 	or services of all active members of the relief association.; or
110.5 	(3) the governing body with which the fire department is affiliated has resolved to transfer 
110.6 	the fire department's active firefighters who are members of the relief association to one or 
110.7 	more pension plans established under chapter 353 and has filed the resolution, if applicable, 
110.8 	with the Public Employees Retirement Association, and the relief association's retirement 
110.9 	plan will have no remaining active firefighters earning service toward a retirement benefit 
110.10 	when the transfer is completed.
110.11 	(b) An involuntary termination of a relief association under this subdivision is effective 
110.12 	on the December 31 that is at least eight months after the date on which the fire department 
110.13 	is dissolved or the termination of employment or services of all active members of the relief 
110.14 	association occurs.
110.15 	(c) The board of trustees must comply with subdivisions 3 and 5 to 12. The board of 
110.16 	trustees may comply with subdivision 4. The state auditor has the discretion to waive these 
110.17 	requirements if the board of trustees requests a waiver in advance and provides adequate 
110.18 	demonstration that meeting these requirements is not practicable.
110.19 	(c) (d) The retirement plan administered by a relief association is terminated automatically 
110.20 	if the relief association is dissolved, effective on the date of the dissolution of the relief 
110.21 	association.

110.22 	Sec. 11. Minnesota Statutes 2024, section 424B.22, subdivision 3, is amended to read:
110.23 		Subd. 3.Retirement plan termination date, full vesting, and forfeitures. (a) Unless 
110.24 	subdivision 2 applies, the effective date of the termination of a retirement plan is the date 
110.25 	approved by the board of trustees of the relief association. If the board of trustees does not 
110.26 	approve a termination date, the effective date of the termination of a retirement plan is the 
110.27 	effective date of the dissolution of the relief association or, if the relief association is not 
110.28 	being dissolved, the end of the calendar year in which the termination of employment or 
110.29 	services of all active members of the relief association occurs.
110.30 	(b) As of the earlier of the retirement plan termination date or the date on which the 
110.31 	termination of employment or services of all active members of the relief association occurs
110.32 	required by section 356.001, subdivision 3, each participant becomes fully (100 percent)
110.33 	member must become 100 percent vested in the participant's member's retirement benefit 
111.1 	under accrued and funded to the earlier of the retirement plan termination date or the date 
111.2 	on which the termination of employment or services of all active members of the relief 
111.3 	association occurs, notwithstanding any bylaws or laws to the contrary, except for. For 
111.4 	purposes of this paragraph:
111.5 	(1) "member" does not mean any retiree in pay status who is receiving a monthly service 
111.6 	pension from a relief association described in section 424A.093.; and
111.7 	(2) crediting of interest on deferred service pensions under the terms of the bylaws of a 
111.8 	defined benefit relief association and section 424A.02, subdivision 7, ends on the retirement 
111.9 	plan termination date.
111.10 	(c) If the relief association is a defined contribution relief association, the account of 
111.11 	each participant who becomes 100 percent vested under paragraph (b) shall include an 
111.12 	allocation of any forfeiture that is required, under the bylaws of the relief association, to 
111.13 	occur on or as of the end of the calendar year during which the termination of the retirement 
111.14 	plan is effective, if the participant is entitled to an allocation of forfeitures under the bylaws. 
111.15 	Any account so forfeited shall not be included in the retirement benefits that become 100 
111.16 	percent vested under paragraph (b).

111.17 	Sec. 12. REPEALER.
 111.18 	Minnesota Statutes 2024, section 356.635, subdivision 9, is repealed.

111.19 	Sec. 13. EFFECTIVE DATE.
 111.20 	Sections 1 to 12 are effective the day following final enactment.

	ARTICLE 1	MINNESOTA STATE RETIREMENT SYSTEM........	Page.Ln 2.15	
	ARTICLE 2	PUBLIC EMPLOYEES RETIREMENT ASSOCIATION........	Page.Ln 5.18	
	ARTICLE 3	PUBLIC EMPLOYEES DEFINED CONTRIBUTION PLAN........	Page.Ln 16.19	
	ARTICLE 4	PERA PRIVATIZATION........	Page.Ln 19.12	
	ARTICLE 5	MSRS CORRECTIONAL PLAN ELIGIBILITY WORK GROUP ........	Page.Ln 29.1	
	ARTICLE 6	HIGHER EDUCATION SUPPLEMENTAL RETIREMENT PLAN........	Page.Ln 44.20	
	ARTICLE 7	STATE AUDITOR'S FIRE RELIEF ASSOCIATION WORKING GROUP........	Page.Ln 46.15	
	ARTICLE 8	FIREFIGHTERS RELIEF ASSOCIATIONS........	Page.Ln 58.4	
	ARTICLE 9	MINNESOTA SECURE CHOICE RETIREMENT PROGRAM........	Page.Ln 59.11	
	ARTICLE 10	PUBLIC PENSION PLANS: AMORTIZATION OF LIABILITIES; CORRECTION OF ERRORS........	Page.Ln 70.1	
	ARTICLE 11	WORK GROUP ON PENSION PLANS FOR PROBATION OFFICERS AND 911 TELECOMMUNICATORS........	Page.Ln 79.14	
	ARTICLE 12	LEGISLATIVE COMMISSION ON PENSIONS AND RETIREMENT ........	Page.Ln 82.24	
	ARTICLE 13	STATEWIDE VOLUNTEER FIREFIGHTER PLAN........	Page.Ln 84.9	
	ARTICLE 14	IRAP TO TRA TRANSFERS........	Page.Ln 91.10	
	ARTICLE 15	FIRE AND POLICE STATE AID........	Page.Ln 93.8	
	ARTICLE 16	STATE BOARD OF INVESTMENT........	Page.Ln 101.1	
	ARTICLE 17	PUBLIC EMPLOYEES DEFINED CONTRIBUTION PLAN........	Page.Ln 102.16	
	ARTICLE 18	MISCELLANEOUS TECHNICAL CORRECTIONS........	Page.Ln 104.15	

APPENDIX 

Repealed Minnesota Statutes: S2884-1 

11A.27 REPORT ON INVESTMENT CONSULTANT ACTIVITIES AND DELIVERABLES.
(a) Annually, on or before November 1, the State Board of Investment shall file a report with the Legislative Reference Library on the activities and work product during that year of any investment consultants retained by the board. 

(b) The report must include the following items: 

(1) the total contract fee paid to each investment consultant; 

(2) a listing of the projects in which the investment consultant was involved; and 

(3) examples of the written work product provided by the investment consultant on those projects during the report coverage period. 

352.91 COVERED CORRECTIONAL SERVICE.Subdivision 1.Qualifying jobs. 
"Covered correctional service" means service performed by a state employee, as defined in section 352.01, employed at a state correctional facility, the state-operated forensic services program, or the Minnesota Sex Offender Program as: 

(1) a corrections officer 1; 

(2) a corrections officer 2; 

(3) a corrections officer 3; 

(4) a corrections officer supervisor; 

(5) a corrections lieutenant; 

(6) a corrections captain; 

(7) a security counselor; 

(8) a security counselor lead; or 

(9) a corrections canine officer. 

Subd. 2.Maintenance, correctional industry, and trades. 
"Covered correctional service" also means service rendered at any time by state employees as maintenance personnel, correctional industry personnel, or members of trades certified by the commissioner of management and budget to the executive director as being engaged for at least 75 percent of the employee's working time in the rehabilitation, treatment, custody, or supervision of inmates at a Minnesota correctional facility, or of patients in the state-operated forensic services program or the Minnesota Sex Offender Program. 

Subd. 2a.Special teachers. 
"Covered correctional service" also means service rendered by a state employee as a special teacher employed by the Department of Corrections or by Direct Care and Treatment at a security unit, provided that at least 75 percent of the employee's working time is spent in direct contact with inmates or patients and the fact of this direct contact is certified to the executive director by the appropriate commissioner or executive board, unless the person elects to retain the current retirement coverage under Laws 1996, chapter 408, article 8, section 21. 

Subd. 3c.Nursing personnel. 
(a) "Covered correctional service" means service by a state employee in one of the employment positions at a correctional facility, in the state-operated forensic services program, or in the Minnesota Sex Offender Program that are specified in paragraph (b) if at least 75 percent of the employee's working time is spent in direct contact with inmates or patients and the fact of this direct contact is certified to the executive director by the appropriate commissioner or executive board. 

(b) The employment positions are as follows: 

(1) registered nurse - senior; 

(2) registered nurse; 

(3) registered nurse - principal; 

(4) licensed practical nurse; 

(5) registered nurse advance practice; and 

(6) psychiatric advance practice registered nurse. 

Subd. 3d.Other correctional personnel. 
(a) "Covered correctional service" means service by a state employee in one of the employment positions at a correctional facility or in the state-operated forensic services program specified in paragraph (b) if at least 75 percent of the employee's working time is spent in direct contact with inmates or patients and the fact of this direct contact is certified to the executive director by the appropriate commissioner or executive board. 

(b) The employment positions are: 

(1) automotive mechanic; 

(2) baker; 

(3) central services administrative specialist, intermediate; 

(4) central services administrative specialist, principal; 

(5) chaplain; 

(6) chief cook; 

(7) clinical program therapist 1; 

(8) clinical program therapist 2; 

(9) clinical program therapist 3; 

(10) clinical program therapist 4; 

(11) cook; 

(12) cook coordinator; 

(13) corrections inmate program coordinator; 

(14) corrections transitions program coordinator; 

(15) corrections security caseworker; 

(16) corrections security caseworker career; 

(17) corrections teaching assistant; 

(18) delivery van driver; 

(19) dentist; 

(20) electrician supervisor; 

(21) general maintenance worker lead; 

(22) general repair worker; 

(23) library/information research services specialist; 

(24) library/information research services specialist senior; 

(25) library technician; 

(26) painter lead; 

(27) plant maintenance engineer lead; 

(28) plumber supervisor; 

(29) psychologist 1; 

(30) psychologist 3; 

(31) recreation therapist; 

(32) recreation therapist coordinator; 

(33) recreation program assistant; 

(34) recreation therapist senior; 

(35) sports medicine specialist; 

(36) work therapy assistant; 

(37) work therapy program coordinator; and 

(38) work therapy technician. 

Subd. 3e.Minnesota Specialty Health System-Cambridge. 
(a) "Covered correctional service" means service by a state employee in one of the employment positions with the Minnesota Specialty Health System-Cambridge specified in paragraph (b) if at least 75 percent of the employee's working time is spent in direct contact with patients who are in the Minnesota Specialty Health System-Cambridge and if service in such a position is certified to the executive director by the Direct Care and Treatment executive board. 

(b) The employment positions are: 

(1) behavior analyst 1; 

(2) behavior analyst 2; 

(3) behavior analyst 3; 

(4) group supervisor; 

(5) group supervisor assistant; 

(6) human services support specialist; 

(7) residential program lead; 

(8) psychologist 2; 

(9) recreation program assistant; 

(10) recreation therapist senior; 

(11) registered nurse senior; 

(12) skills development specialist; 

(13) social worker senior; 

(14) social worker specialist; and 

(15) speech pathology specialist. 

(c) A Department of Human Services or Direct Care and Treatment employee who was employed at the Minnesota Specialty Health System-Cambridge immediately preceding the 2014 conversion to the community-based homes and was in covered correctional service at the time of the transition shall continue to be covered by the correctional employees retirement plan while employed by and without a break in service with the Department of Human Services or Direct Care and Treatment in the direct care and treatment of patients. 

Subd. 3f.Additional Direct Care and Treatment personnel. 
(a) "Covered correctional service" means service by a state employee in one of the employment positions specified in paragraph (b) in the state-operated forensic services program or the Minnesota Sex Offender Program if at least 75 percent of the employee's working time is spent in direct contact with patients and the determination of this direct contact is certified to the executive director by the commissioner of human services or Direct Care and Treatment executive board. 

(b) The employment positions are: 

(1) baker; 

(2) behavior analyst 2; 

(3) behavior analyst 3; 

(4) certified occupational therapy assistant 1; 

(5) certified occupational therapy assistant 2; 

(6) client advocate; 

(7) clinical program therapist 2; 

(8) clinical program therapist 3; 

(9) clinical program therapist 4; 

(10) cook; 

(11) culinary supervisor; 

(12) customer services specialist principal; 

(13) dental assistant registered; 

(14) dental hygienist; 

(15) food service worker; 

(16) food services supervisor; 

(17) group supervisor; 

(18) group supervisor assistant; 

(19) human services support specialist; 

(20) licensed alcohol and drug counselor; 

(21) licensed practical nurse; 

(22) management analyst 3; 

(23) music therapist; 

(24) occupational therapist; 

(25) occupational therapist, senior; 

(26) physical therapist; 

(27) psychologist 1; 

(28) psychologist 2; 

(29) psychologist 3; 

(30) recreation program assistant; 

(31) recreation therapist lead; 

(32) recreation therapist senior; 

(33) rehabilitation counselor senior; 

(34) residential program lead; 

(35) security supervisor; 

(36) skills development specialist; 

(37) social worker senior; 

(38) social worker specialist; 

(39) social worker specialist, senior; 

(40) special education program assistant; 

(41) speech pathology clinician; 

(42) substance use disorder counselor senior; 

(43) work therapy assistant; and 

(44) work therapy program coordinator. 

Subd. 3g.Additional Corrections Department personnel. 
(a) "Covered correctional service" means service by a state employee in one of the employment positions specified in paragraph (b) if at least 75 percent of the employee's working time is spent in direct contact with inmates and the determination of this direct contact is certified to the executive director by the commissioner of corrections. 

(b) The qualifying employment positions are: 

(1) corrections discipline unit supervisor; 

(2) dental assistant registered; 

(3) dental hygienist; 

(4) food service supervisor; 

(5) medical assistant, certified; 

(6) psychologist 2; and 

(7) sentencing to service crew leader involved with the inmate community work crew program. 

Subd. 3h.Employment occupation name changes. 
(a) If the occupational title of a state employee covered by the Minnesota correctional employees retirement plan changes from the applicable title listed in subdivision 1, 2, 2a, 3c, 3d, 3e, 3f, or 3g, qualification for coverage by the correctional state employees retirement plan continues until the July 1 next following the title change if the commissioner of management and budget certifies to the executive director of the Minnesota State Retirement System and to the executive director of the Legislative Commission on Pensions and Retirement that the duties, requirements, and responsibilities of the new occupational title are substantially identical to the duties, requirements, and responsibilities of the prior occupational title. 

(b) If the commissioner of management and budget does not certify a new occupational title under paragraph (a), eligibility for future correctional state employees retirement coverage terminates as of the start of the first payroll period next following the effective date of the occupational title change. 

(c) For consideration by the Legislative Commission on Pensions and Retirement during the legislative session next following an occupational title change involving a state employee in covered correctional service, the commissioner of management and budget shall submit the applicable draft proposed legislation reflecting the occupational title change covered by this section. 

Subd. 3i.Lateral transfers to new correctional facilities. 
If a new correctional facility is established, a state employee rendering covered correctional service immediately before the transfer remains eligible for coverage by the correctional state employees retirement plan for future state employment at the new facility if the person is employed in the same occupational title at the new facility. The eligibility for future coverage continues until the July 1 next following the effective date of the establishment of the new facility. 

Subd. 3j.State-operated forensic services program. 
For purposes of this section, "state-operated forensic services program" means the Minnesota Security Hospital, the forensic nursing home, the forensic transition service, and the competency restoration program. 

Subd. 4a.Process for evaluating and recommending potential employment positions for membership inclusion. 
(a) The Department of Corrections and Direct Care and Treatment must establish a procedure for evaluating periodic requests by department and agency employees for qualification for recommendation by the commissioner or executive board for inclusion of the employment position in the correctional facility or Direct Care and Treatment facility in the correctional retirement plan and for periodically determining employment positions that no longer qualify for continued correctional retirement plan coverage. 

(b) The procedure must provide for an evaluation of the extent of the employee's working time spent in direct contact with patients or inmates, the extent of the physical hazard that the employee is routinely subjected to in the course of employment, and the extent of intervention routinely expected of the employee in the event of a facility incident. The percentage of routine direct contact with inmates or patients may not be less than 75 percent. 

(c) The applicable commissioner or executive board shall notify the employee of the determination of the appropriateness of recommending the employment position for inclusion in the correctional retirement plan, if the evaluation procedure results in a finding that the employee: 

(1) routinely spends 75 percent of the employee's time in direct contact with inmates or patients; and 

(2) is regularly engaged in the rehabilitation, treatment, custody, or supervision of inmates or patients. 

(d) After providing the affected employee an opportunity to dispute or clarify any evaluation determinations, if the commissioner or executive board determines that the employment position is appropriate for inclusion in the correctional retirement plan, the commissioner or executive board shall forward that recommendation and supporting documentation to the chair of the Legislative Commission on Pensions and Retirement, the chair of the State and Local Governmental Operations Committee of the senate, the chair of the Governmental Operations and Veterans Affairs Policy Committee of the house of representatives, and the executive director of the Legislative Commission on Pensions and Retirement in the form of the appropriate proposed legislation. The recommendation must be forwarded to the legislature before January 15 for the recommendation to be considered in that year's legislative session. 

Subd. 4b.Department of Corrections; procedure for coverage change considerations. 
(a) The commissioner of corrections shall appoint a standing review committee to review and determine positions that should be included in legislative requests for correctional employees retirement plan coverage under subdivision 4a. 

(b) Periodically, the Department of Corrections will convene meetings of the review committee. The review committee must review all requests and the supporting documentation for coverage by the correctional employees retirement plan and must determine which classes or positions meet the statutory requirements for coverage. The review committee also must determine if incumbents of and recent retirees from classes or positions determined for inclusion in correctional employees retirement plan coverage have prior Department of Corrections employment which also qualified as correctional service and which should be transferred from the general state employees retirement plan to the plan and the initial date for each potential service credit transfer. 

(c) The review committee must evaluate and determine the eligibility date for initial plan participation and all periods of eligibility in the correctional employees retirement plan. 

(d) The department must provide a notice of each determination and of the employee's right to appeal from the review committee to each employee who requested inclusion. Appeals must be filed with the agency human resource manager within 30 days of the date of the notice of determination. 

(e) The commissioner of corrections shall appoint a standing appeals committee to hear appeals of determinations for coverage. The appeal committee must include relevant department employees and employee representatives. Appeal committee determinations are final. 

(f) All positions approved for inclusion must be forwarded to the commissioner of corrections for the preparation of legislation to implement the coverage change and submission. The commissioner will submit a written recommendation documenting classes or positions that should or should not be covered by the correctional employees retirement plan. Documentation of each request and the final determination must be retained in the Department of Corrections' Office of Human Resource Management. 

Subd. 4c.Direct Care and Treatment; procedure for coverage change considerations. 
(a) The Direct Care and Treatment executive board shall appoint a standing review committee to review and determine classifications or positions that may be included in legislative requests for correctional state employees retirement plan coverage under subdivision 4a. 

(b) The agency's human resources director shall convene a meeting of the review committee only at the request of a labor organization or a member of the agency's management team. 

(c) The review committee must review all requests and the supporting documentation for coverage by the correctional state employees retirement plan and must make a recommendation to the executive board regarding which classifications or positions meet the statutory requirements for coverage. The review committee must also make a recommendation to the executive board regarding classifications or positions that no longer meet the statutory requirement for coverage by the correctional state employees retirement plan and removal of the classification or position from the applicable statute. 

(d) The agency's human resources director must provide a notice of each determination and of the employee's right to appeal the determination. Appeals must be filed with the agency's human resources director within 30 days of the date of the notice of determination. 

(e) The Direct Care and Treatment executive board shall review appeals of determinations for coverage. The executive board's determinations are final. 

(f) All classifications or positions recommended by the review committee for inclusion in or exclusion from the correctional state employees retirement plan must be forwarded to the Direct Care and Treatment executive board for the preparation of legislation to implement the coverage change and submission. If the executive board determines that the employment position is appropriate for inclusion in or exclusion from the correctional state employees retirement plan, the executive board shall submit a written recommendation documenting classifications or positions that should or should not be covered by the correctional state employees retirement plan. The agency's human resources director must retain the documentation of each request and the final determination. 

Subd. 6.Correction of plan coverage errors. 
If erroneous employee deductions and employer contributions are caused by an error in plan coverage involving the correctional state employees retirement plan and any other plan specified in section 356.637, that section applies. 

353F.02 DEFINITIONS.Subd. 4a.Medical facility. 
"Medical facility" means a facility that has the primary purpose of providing medical care and that satisfies the definition of governmental subdivision under section 353.01, subdivision 6. 

356.635 INTERNAL REVENUE CODE COMPLIANCE.Subd. 9.Military service. 
Contributions, benefits, including death and disability benefits under section 401(a)(37) of the federal Internal Revenue Code, and service credit with respect to qualified military service must be provided according to section 414(u) of the federal Internal Revenue Code. For deaths occurring on or after January 1, 2007, while a member is performing qualified military service as defined in United States Code, title 38, chapter 43, to the extent required by section 401(a)(37) of the Internal Revenue Code, survivors of a member in the system are entitled to any additional benefits that the system would have provided if the member had resumed employment and then died, including but not limited to accelerated vesting or survivor benefits that are contingent on the member's death while employed. In any event, a deceased member's period of qualified military service must be counted for vesting purposes. 

356A.06 INVESTMENTS; ADDITIONAL DUTIES.Subd. 5.Investment business recipient disclosure. 
The chief administrative officer of a covered pension plan, with respect to investments made by the plan, and the executive director of the State Board of Investment, with respect to investments of plan assets made by the board, shall annually disclose in writing the recipients of investment business placed with or investment commissions allocated among commercial banks, investment bankers, brokerage organizations, or other investment managers. The disclosure document must be prepared within 60 days after the close of the fiscal year of the plan and must be available for public inspection during regular office hours at the office of the plan. The disclosure document must also be filed with the executive director of the Legislative Commission on Pensions and Retirement within 90 days after the close of the fiscal year of the plan. For the State Board of Investment and the St. Paul Teachers Retirement Fund Association, a disclosure document included as part of a regular annual report when filed with the executive director of the Legislative Commission on Pensions and Retirement is considered to have been filed on a timely basis. An officer or member of the board of trustees of a covered pension plan governed by sections 424A.091 to 424A.096 or the Bloomington Fire Department Relief Association may file the disclosure document with the executive director of the Legislative Commission on Pensions and Retirement by email. 

424A.015 GENERALLY APPLICABLE FIREFIGHTERS RELIEF ASSOCIATION PENSION PLAN REGULATION.Subd. 5.Minnesota deferred compensation plan transfers. 
A relief association may directly transfer on an institution-to-institution basis the eligible member's lump-sum pension amount to the requesting member's account in the Minnesota deferred compensation plan, if: 

(1) the governing articles of incorporation or bylaws so provide; 

(2) the firefighter participates in the Minnesota deferred compensation plan at the time of retirement; and 

(3) the applicable retiring firefighter requests in writing that the relief association do so.