SF 2980

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/28/2025 09:27 a.m.

A bill for an act
relating to retirement; making administrative changes to statutes governing the
retirement plans administered by the Public Employees Retirement Association;
clarifying that the monthly salary threshold for required coverage must be stipulated
in advance; adding requirements for elected or appointed public officials who wish
to elect coverage by the general employees retirement plan; clarifying the
membership election period and timing to file membership election forms; adding
a 60-day requirement for filing an election with the association; clarifying the
application of the increased multiplier for members of the local government
correctional retirement plan who qualify for a duty disability benefit; amending
Minnesota Statutes 2024, sections 353.01, subdivisions 2a, 2b, 2d; 353.028,
subdivisions 2, 3; 353.34, subdivision 5; 353D.02, subdivisions 1, 2, 3, 4, 5, 6, 7;
353E.06, subdivision 1; 356.636, subdivisions 2, 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 353.01, subdivision 2a, is amended to read:

Subd. 2a.

Included employees; mandatory membership.

(a) new text begin Any new text end public deleted text begin employees deleted text end new text begin
employee new text end whose salary from one governmental subdivision deleted text begin exceeds deleted text end new text begin is expected to exceed new text end
$425 in any month and who deleted text begin are deleted text end new text begin is new text end not specifically excluded under subdivision 2b or deleted text begin have deleted text end new text begin
has new text end not been provided an option to participate under subdivision 2d, whether individually
or by action of the governmental subdivision, must participate new text begin beginning on the employee's
first day of employment new text end as deleted text begin members deleted text end new text begin a member new text end of the association with retirement coverage
by the general employees retirement plan under this chapter, the public employees police
and fire plan under this chapter, or the local government correctional employees retirement
plan under chapter 353E, whichever applies. new text begin For any employee whose salary is not expected
to exceed $425 in any month, new text end membership commences deleted text begin as a condition of employment on
the first day of employment or deleted text end on the first day that the new text begin employee's salary exceeds $425 and
the other new text end eligibility criteria are met deleted text begin , whichever is later deleted text end . Public employees include but are
not limited to:

(1) persons whose salary meets the threshold in this paragraph from employment in one
or more positions within one governmental subdivision;

(2) elected county sheriffs;

(3) persons who are appointed, employed, or contracted to perform governmental
functions that by law or local ordinance are required of a public officer, including, but not
limited to:

(i) town and city clerk or treasurer;

(ii) county auditor, treasurer, or recorder;

(iii) city manager as defined in section 353.028 who does not exercise the option provided
under subdivision 2d; or

(iv) emergency management director, as provided under section 12.25;

(4) physicians under section 353D.01, subdivision 2, who do not elect public employees
defined contribution plan coverage under section 353D.02, subdivision 2;

(5) full-time employees of the Dakota County Agricultural Society;

(6) employees of the Red Wing Port Authority who were first employed by the Red
Wing Port Authority before May 1, 2011, and who are not excluded employees under
subdivision 2b;

(7) employees of the Seaway Port Authority of Duluth who are not excluded employees
under subdivision 2b;

(8) employees of the Stevens County Housing and Redevelopment Authority who were
first employed by the Stevens County Housing and Redevelopment Authority before May
1, 2014, and who are not excluded employees under subdivision 2b;

(9) employees of the Minnesota River Area Agency on Aging who were first employed
by a Regional Development Commission before January 1, 2016, and who are not excluded
employees under subdivision 2b; and

(10) employees of the Public Employees Retirement Association.

(b) A public employee or elected official who was a member of the association on June
30, 2002, based on employment that qualified for membership coverage by the public
employees retirement plan or the public employees police and fire plan under this chapter,
or the local government correctional employees retirement plan under chapter 353E as of
June 30, 2002, retains that membership for the duration of the person's employment in that
position or incumbency in elected office. Except as provided in subdivision 28, the person
shall participate as a member until the employee or elected official terminates public
employment under subdivision 11a or terminates membership under subdivision 11b.

(c) If the salary of an included public employee is less than $425 in any subsequent
month, the member retains membership eligibility.

(d) For the purpose of participation in the general employees retirement plan, public
employees include employees who were members of the former Minneapolis Employees
Retirement Fund on June 29, 2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 2.

Minnesota Statutes 2024, section 353.01, subdivision 2b, is amended to read:

Subd. 2b.

Excluded employees.

(a) The following public employees are not eligible to
participate as members of the association with retirement coverage by the general employees
retirement plan, the local government correctional employees retirement plan under chapter
353E, or the public employees police and fire plan:

(1) persons whose salary from one governmental subdivision never exceeds new text begin or is never
expected to exceed new text end $425 in a month;

(2) public officers who are elected to a governing body, city mayors, or persons who
are appointed to fill a vacancy in an elected office of a governing body, whose term of office
commences on or after July 1, 2002, for the service to be rendered in that elected position;

(3) election judges and persons employed solely to administer elections;

(4) patient and inmate personnel who perform services for a governmental subdivision;

(5) except as otherwise specified in subdivision 12a, employees who are employed solely
in a temporary position as defined under subdivision 12a, and employees who resign from
a nontemporary position and accept a temporary position within 30 days of that resignation
in the same governmental subdivision;

(6) employees who are employed by reason of work emergency caused by fire, flood,
storm, or similar disaster, but if the person becomes a probationary or provisional employee
within the same pay period, other than on a temporary basis, the person is a "public
employee" retroactively to the beginning of the pay period;

(7) employees who by virtue of their employment in one governmental subdivision are
required by law to be a member of and to contribute to any of the plans or funds administered
by the Minnesota State Retirement System, the Teachers Retirement Association, or the St.
Paul Teachers Retirement Fund Association, but this exclusion must not be construed to
prevent a person from being a member of and contributing to the Public Employees
Retirement Association and also belonging to and contributing to another public pension
plan or fund for other service occurring during the same period of time, and a person who
meets the definition of "public employee" in subdivision 2 by virtue of other service occurring
during the same period of time becomes a member of the association unless contributions
are made to another public retirement plan on the salary based on the other service or to the
Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;

(8) persons who are members of a religious order and are excluded from coverage under
the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance
of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if
no irrevocable election of coverage has been made under section 3121(r) of the Internal
Revenue Code of 1954, as amended;

(9) persons who are:

(i) employed by a governmental subdivision who have not reached the age of 23 and
who are enrolled on a full-time basis to attend or are attending classes on a full-time basis
at an accredited school, college, or university in an undergraduate, graduate, or
professional-technical program, or at a public or charter high school;

(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist
interns and are serving in a degree or residency program in a public hospital or in a public
clinic; or

(iii) students who are serving for a period not to exceed five years in an internship or a
residency program that is sponsored by a governmental subdivision, including an accredited
educational institution;

(10) persons who hold a part-time adult supplementary technical college license who
render part-time teaching service in a technical college;

(11) for the first three years of employment, foreign citizens who are employed by a
governmental subdivision, except that the following foreign citizens must be considered
included employees under subdivision 2a:

(i) H-1B, H-1B1, and E-3 status holders;

(ii) employees of Hennepin County or Hennepin Healthcare System, Inc.;

(iii) employees legally authorized to work in the United States for three years or more;
and

(iv) employees otherwise required to participate under federal law;

(12) public hospital employees who elected not to participate as members of the
association before 1972 and who did not elect to participate from July 1, 1988, to October
1, 1988;

(13) deleted text begin except as provided in section 353.86, deleted text end volunteer ambulance service personnel, as
defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
may still qualify as public employees under subdivision 2 and may be members of the Public
Employees Retirement Association and participants in the general employees retirement
plan or the public employees police and fire plan, whichever applies, on the basis of
compensation received from public employment service other than service as volunteer
ambulance service personnel;

(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision
36, engaging in activities undertaken as part of volunteer firefighter duties, but a person
who is a volunteer firefighter may still qualify as a public employee under subdivision 2
and may be a member of the Public Employees Retirement Association and a participant
in the general employees retirement plan or the public employees police and fire plan,
whichever applies, on the basis of compensation received from public employment activities
other than those as a volunteer firefighter;

(15) employees in the building and construction trades, as follows:

(i) pipefitters and associated trades personnel employed by Independent School District
No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters
local 455 pension plan who were either first employed after May 1, 1997, or, if first employed
before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section
12;

(ii) electrical workers, plumbers, carpenters, and associated trades personnel employed
by Independent School District No. 625, St. Paul, or the city of St. Paul, with coverage
under a collective bargaining agreement by the electrical workers local 110 pension plan,
the plumbers local 34 pension plan, or the carpenters local 322 pension plan who were either
first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be
excluded under Laws 2000, chapter 461, article 7, section 5;

(iii) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters,
allied tradesworkers, and plasterers employed by the city of St. Paul or Independent School
District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
bricklayers and allied craftworkers local 1 pension plan, the cement masons local 633
pension plan, the glaziers and glassworkers local 1324 pension plan, the painters and allied
trades local 61 pension plan, or the plasterers local 265 pension plan who were either first
employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded
under Laws 2001, First Special Session chapter 10, article 10, section 6;

(iv) plumbers employed by the Metropolitan Airports Commission, with coverage under
a collective bargaining agreement by the plumbers local 34 pension plan, who were either
first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be
excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;

(v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation
Board, with coverage under a collective bargaining agreement by the electrical workers
local 292 pension plan or the pipefitters local 539 pension plan, who were first employed
before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11,
section 5;

(vi) laborers and associated trades personnel employed by the city of St. Paul or
Independent School District No. 625, St. Paul, who are designated as temporary employees
with coverage under a collective bargaining agreement by a multiemployer plan as defined
in section 356.27, subdivision 1, who were either first employed on or after June 1, 2018,
or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter
211, article 16, section 13; and

(vii) employees who are trades employees as defined in section 356.27, subdivision 1,
first hired on or after July 1, 2020, by the city of St. Paul or Independent School District
No. 625, St. Paul, except for any trades employee for whom contributions are made under
section 356.24, subdivision 1, clause (8), (9), or (10), by either employer to a multiemployer
plan as defined in section 356.27, subdivision 1;

(16) employees who are hired after June 30, 2002, solely to fill seasonal positions under
subdivision 12b which are limited in duration by the employer to a period of six months or
less in each year of employment with the governmental subdivision;

(17) persons who are provided supported employment or work-study positions by a
governmental subdivision and who participate in an employment or industries program
maintained for the benefit of these persons where the governmental subdivision limits the
position's duration to up to five years, including persons participating in a federal or state
subsidized on-the-job training, work experience, senior citizen, youth, or unemployment
relief program where the training or work experience is not provided as a part of, or for,
future permanent public employment;

(18) independent contractors and the employees of independent contractors;

(19) reemployed annuitants of the association during the course of that reemployment;

(20) persons appointed to serve on a board or commission of a governmental subdivision
or an instrumentality thereof;

(21) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan
Transit Commission who are members of the International Brotherhood of Teamsters Local
638 and who are, by virtue of that employment, members of the International Brotherhood
of Teamsters Central States pension plan; and

(22) persons employed by the Duluth Transit Authority or any subdivision thereof who
are members of the Teamsters General Local Union 346 and who are, by virtue of that
employment, members of the Central States Southeast and Southwest Areas Pension Fund.

(b) Any person performing the duties of a public officer in a position defined in
subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
employee of an independent contractor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 3.

Minnesota Statutes 2024, section 353.01, subdivision 2d, is amended to read:

Subd. 2d.

Optional membership.

(a) Membership in the association is optional by
action of the individual employee for the following public employees who meet the conditions
set forth in subdivision 2a:

(1) members of the coordinated plan who are also employees of labor organizations as
defined in section 353.017, subdivision 1, for their employment by the labor organization
only, if they elect to have membership under section 353.017, subdivision 2;

(2) persons who are elected or deleted text begin persons who are deleted text end appointed to elected positions new text begin , new text end other
than local governing body elected positions new text begin , and new text end who elect to participate new text begin within 30 days of
taking office new text end by deleted text begin filing deleted text end new text begin completing and signing new text end a deleted text begin written election for deleted text end membership new text begin election
on a form prescribed by the executive director of the association and filing the membership
election with the association within 60 days of taking office new text end ;

(3) members of the association who are appointed by the governor to be a state department
head and who elect not to be covered by the general state employees retirement plan of the
Minnesota State Retirement System under section 352.021;

(4) city managers as defined in section 353.028, subdivision 1, who do not elect to be
excluded from membership in the association under section 353.028, subdivision 2; and

(5) employees of the Port Authority of the city of St. Paul on January 1, 2003, who were
at least age 45 on that date, and who elected to participate by deleted text begin filing a written deleted text end new text begin completing
and signing a membership new text end election deleted text begin for membership deleted text end .

(b) Membership in the association is optional by action of the governmental subdivision
for the employees of the following governmental subdivisions under the conditions specified:

(1) the Minnesota Association of Townships if the board of that association, at its option,
certifies to the executive director that its employees who meet the conditions set forth in
subdivision 2a are to be included for purposes of retirement coverage, in which case the
status of the association as a participating employer is permanent;

(2) a county historical society if the county in which the historical society is located, at
its option, certifies to the executive director that the employees of the historical society who
meet the conditions set forth in subdivision 2a are to be considered county employees for
purposes of retirement coverage under this chapter. The status as a county employee must
be accorded to all similarly situated county historical society employees and, once established,
must continue as long as a person is an employee of the county historical society; and

(3) Hennepin Healthcare System, Inc., a public corporation, with respect to employees
other than paramedics, emergency medical technicians, and protection officers, if the
corporate board establishes alternative retirement plans for certain classes of employees of
the corporation and certifies to the association the applicable employees to be excluded
from future retirement coverage.

(c) For employees who are covered by paragraph (a), clause (1), (2), or (3), or covered
by paragraph (b), clause (1) or (2), if the necessary membership election is not made, the
employee is excluded from retirement coverage under this chapter. For employees who are
covered by paragraph (a), clause (4), if the necessary election new text begin of exclusion new text end is not made, the
employee must become a member and have retirement coverage under the applicable
provisions of this chapter. For employees specified in paragraph (b), clause (3), membership
continues until the exclusion option is exercised for the designated class of employee.

(d) The option to become a member, once exercised under this subdivision, may not be
withdrawn until the termination of public service as defined under subdivision 11a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 4.

Minnesota Statutes 2024, section 353.028, subdivision 2, is amended to read:

Subd. 2.

Election.

(a) A city manager first employed by a city may make a onetime,
irrevocable election to be excluded from membership in the general employees retirement
plan of the association. The election of exclusion must be made within 30 days following
the commencement of employment, must be made in writing on a form prescribed by the
executive director, deleted text begin and deleted text end must be approved by a resolution adopted by the governing body
of the city new text begin , and must be filed with the association within 60 days of commencing employment new text end .
The election of exclusion is not effective until it is filed with the executive director.
Membership of a city manager in the general employees retirement plan ceases on the date
the written election new text begin of exclusion new text end is received by the executive director. Employee and
employer contributions made during the first deleted text begin 30 deleted text end new text begin 60 new text end days of employment on behalf of a
person exercising the option to be excluded from membership under this paragraph must
be refunded or credited in accordance with section 353.27, subdivision 7.

(b) A city manager who has previously been an employee in any position covered by
any retirement plan administered by the association to which the city contributed or by any
supplemental pension or deferred compensation plan under section 356.24 sponsored by
the city is not eligible to make the election under paragraph (a).

(c) Any election under paragraph (a) must include a statement that the individual will
not seek authorization to purchase service credit for any period of excluded service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 5.

Minnesota Statutes 2024, section 353.028, subdivision 3, is amended to read:

Subd. 3.

Deferred compensation; city contribution.

(a) If an election of exclusion
under subdivision 2 is made, and if the city manager and the governing body of the city
additionally agree in writing that the additional compensation is to be deferred and is to be
contributed on behalf of the city manager to a deferred compensation program that meets
the requirements of section 457 of the Internal Revenue Code of 1986, as amended, and
section 356.24, the governing body may compensate the city manager, in addition to the
salary allowed under any limitation imposed on salaries by law or charter, in an amount
equal to the employer contribution that would be required by section 353.27, subdivision
3, if the city manager were a member of the general employees retirement plan.

(b) Alternatively, if an election of exclusion under subdivision 2 is made, the city manager
and the governing body of the city may agree in writing that the equivalent employer
contribution to the contribution under section 353.27, subdivision 3, be contributed by the
city to the defined contribution plan of the Public Employees Retirement Association under
chapter 353D. deleted text begin Any deleted text end new text begin An election and new text end agreement under this paragraph must be entered into
within 30 days following the commencement of employment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 6.

Minnesota Statutes 2024, section 353.34, subdivision 5, is amended to read:

Subd. 5.

Right to a refund generally unlimited.

new text begin Notwithstanding section 356.65, new text end the
right to a refund provided in this chapter deleted text begin , and laws amendatory thereof, deleted text end is not restricted as
to time unless specifically provided and the statute of limitation does not apply thereto.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2024, section 353D.02, subdivision 1, is amended to read:

Subdivision 1.

Local government officials.

Eligible elected or appointed local
government officials may elect to participate in the defined contribution plan within the
first 30 days of deleted text begin being elected or appointed to deleted text end new text begin taking new text end public office by deleted text begin filing deleted text end new text begin completing and
signing new text end a membership deleted text begin application deleted text end new text begin election new text end on a form prescribed by the executive director
of the association authorizing contributions to be deducted from the official's salary.
Participation begins on the first day of the pay period for which the contributions were
deducted or, if pay period coverage dates are not provided, the date on which the membership
deleted text begin application deleted text end new text begin election new text end or contributions are received in the office of the association, whichever
is received first, provided further that the membership deleted text begin application deleted text end new text begin election new text end is received by
the association within 60 days of deleted text begin the receipt of the contributions deleted text end new text begin taking office new text end . An election
to participate in the plan is irrevocable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 8.

Minnesota Statutes 2024, section 353D.02, subdivision 2, is amended to read:

Subd. 2.

Eligible physicians.

Eligible physicians may elect to participate in the defined
contribution plan within the first 30 days of commencing employment with a government
subdivision under section 353.01, subdivision 6, by deleted text begin filing deleted text end new text begin completing and signing new text end a
membership deleted text begin application deleted text end new text begin election new text end on a form prescribed by the executive director of the
association authorizing contributions to be deducted from the physician's salary new text begin and filing
the membership election with the association within 60 days of commencing employment new text end .
Participation begins on the first day of the pay period for which the contributions were
deducted. An election to participate in the defined contribution plan is irrevocable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 9.

Minnesota Statutes 2024, section 353D.02, subdivision 3, is amended to read:

Subd. 3.

Eligible ambulance service personnel.

Each public ambulance service with
eligible personnel may elect to participate in the plan. If a service elects to participate, its
eligible personnel may elect to participate or decline to participate. An individual's
new text begin membership new text end election must be made within 30 days of the service's election to participate
or within 30 days of the date on which the individual began employment with the service
or began to provide service for it, whichever date is later. new text begin The membership election must
be received by the association within 60 days of the service's election to participate or within
60 days of the date on which the individual first began employment, whichever is later. new text end An
election by a service or an individual is irrevocable.

Sec. 10.

Minnesota Statutes 2024, section 353D.02, subdivision 4, is amended to read:

Subd. 4.

Eligible rescue squad personnel.

The municipality or county, as applicable,
associated with a rescue squad under section 353D.01, subdivision 2, paragraph (a), clause
(4), may elect to participate in the plan. If the municipality or county, as applicable, elects
to participate, the eligible personnel may elect to participate or decline to participate. An
eligible individual's new text begin membership new text end election must be made within 30 days of the deleted text begin service's deleted text end new text begin
municipality's or county's new text end election to participate or within 30 days of the date on which the
individual first began employment with the rescue squad, whichever is later. new text begin The membership
election must be received by the association within 60 days of the municipality's or county's
election to participate or within 60 days of the date on which the individual first began
employment, whichever is later. new text end Elections under this subdivision by a government unit or
individual are irrevocable. The municipality or county, as applicable, must specify by
resolution eligibility requirements for rescue squad personnel which must be satisfied if the
individual is to be authorized to make the new text begin membership new text end election under this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 11.

Minnesota Statutes 2024, section 353D.02, subdivision 5, is amended to read:

Subd. 5.

St. Paul Port Authority personnel.

Employees of the Port Authority of the
city of St. Paul who do not elect to participate in the general employees retirement plan may
elect within the first 30 days of commencing employment to participate in the plan by deleted text begin filing deleted text end new text begin
completing and signing new text end a membership deleted text begin application deleted text end new text begin election new text end on a form prescribed by the
executive director of the association authorizing contributions to be deducted from the
employee's salary. Participation begins on the first day of the pay period for which the
contributions were deducted or, if pay period coverage dates are not provided, the date on
which the membership deleted text begin application deleted text end new text begin election new text end or the contributions are received in the office
of the association, whichever is received first, deleted text begin if deleted text end new text begin provided new text end the membership deleted text begin application deleted text end new text begin
election new text end is received by the association within 60 days of deleted text begin the receipt of the contributions deleted text end new text begin
commencing employment new text end . An election to participate in the plan is irrevocable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 12.

Minnesota Statutes 2024, section 353D.02, subdivision 6, is amended to read:

Subd. 6.

City managers.

new text begin Any new text end city deleted text begin managers deleted text end new text begin manager new text end who elected to be excluded new text begin within
30 days of commencing employment new text end from the general employees retirement plan of the
Public Employees Retirement Association under section 353.028, new text begin subdivision 2, new text end and who
deleted text begin elected to participate in the plan deleted text end new text begin entered into an agreement new text end under section 353.028, subdivision
3, paragraph (b), new text begin with the governing body of the city by which the city manager is employed
to have the city make contributions to the defined contribution plan under chapter 353D
new text end must file deleted text begin that deleted text end new text begin an new text end election with the deleted text begin executive director deleted text end new text begin association new text end within the first deleted text begin 30 deleted text end new text begin 60 new text end days
of commencing employment new text begin to participate in the defined contribution plan. The city manager
must complete and sign a membership election on a form prescribed by the executive director
of the association new text end . Participation begins on the first day of the pay period next following the
date of the coverage election. An election to participate by a city manager is irrevocable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 13.

Minnesota Statutes 2024, section 353D.02, subdivision 7, is amended to read:

Subd. 7.

Certain volunteer firefighters.

Volunteer or on-call firefighters who are serving
as members of a municipal fire department or an independent nonprofit firefighting
corporation and who are not covered for that firefighting service by the public employees
police and fire retirement plan under sections 353.63 to 353.68, by a firefighters relief
association under chapter 424A, or by the statewide volunteer firefighter retirement plan
under chapter 353G may elect to participate in the plan within the first 30 days of
commencing service new text begin by completing and signing a membership election on a form prescribed
by the executive director of the association. The membership election must be filed with
the association within 60 days of commencing service new text end . An eligible firefighter's election is
irrevocable. No employer contribution is payable by the fire department or the firefighting
corporation unless the municipal governing body or the firefighting corporation governing
body, whichever applies, ratifies the new text begin membership new text end election.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 14.

Minnesota Statutes 2024, section 353E.06, subdivision 1, is amended to read:

Subdivision 1.

Duty disability qualification requirements.

A member who is determined
to qualify for a duty disability as defined in section 353E.001, subdivision 1, is entitled to
a disability benefit. The disability benefit must be based on covered service under this
chapter only and is an amount equal to 47.5 percent of the average salary defined in section
353E.04, subdivision 2, plus deleted text begin an additional 1.9 percent deleted text end new text begin , new text end for each year of covered service
under this chapter in excess of 25 years deleted text begin . deleted text end new text begin :
new text end

new text begin (1) 1.9 percent for each year of allowable service beginning before July 1, 2025; and
new text end

new text begin (2) 2.2 percent for each year of allowable service beginning after June 30, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15.

Minnesota Statutes 2024, section 356.636, subdivision 2, is amended to read:

Subd. 2.

Correction of errors.

(a) The executive director of a pension fund may correct
an operational deleted text begin , demographic, or employer or employee eligibility deleted text end error deleted text begin , deleted text end new text begin by a pension fund new text end
or an error in a plan document that is not a statute if the executive director determines that
correction is necessary or appropriate to preserve and protect the tax qualification of any
pension or retirement plan listed in section 356.611, subdivision 6, that is deleted text begin part of deleted text end new text begin administered
by new text end the pension fund. The method of correction must comply with the Internal Revenue
Service Employee Plans Compliance Resolution System (EPCRS) or any successor thereto,
if the EPCRS addresses the error and correction.

(b) To the extent deemed necessary by the executive director to implement correction,
the executive director may:

(1) make distributions;

(2) transfer assets;

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

(4) take any other action that will restore the plan and any affected member or participant
to the position the plan, member, or participant would have been in had the error not occurred.

(c) An executive director may correct an error under paragraph (a) or (b) without regard
to any statute that imposes a time limitation on making such correction.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16.

Minnesota Statutes 2024, section 356.636, subdivision 3, is amended to read:

Subd. 3.

Annual report.

The executive director of each pension fund must report
annually, no later than each February 1, to the chair and executive director of the Legislative
Commission on Pensions and Retirement on whether the executive director of the pension
fund corrected any operational deleted text begin , demographic, employer or employee eligibility, deleted text end or plan
document error during the preceding calendar year. The report must describe the error, the
pension or retirement plan affected by the error, the method of correction, and the cost, if
any, to the pension or retirement plan, employee, or employer of the error and correction.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end