HF 4074
1st Engrossment - 94th Legislature (2025 - 2026)
Posted on 04/20/2026 01:26 p.m.
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A bill for an act
relating to retirement; modifying expense apportionment among funds managed
by the State Board of Investment; making administrative changes to statutes
governing the retirement plans administered by the Minnesota State Retirement
System; clarifying that correctional employees remain in the correctional employees
retirement plan while working for a labor organization; making conforming changes
to retirement annuity application procedures; modifying enrollment procedures in
the state fire marshals subplan; clarifying that the correctional plan membership
committee is not subject to the open meeting law and agency appointment and
registration requirements; allowing current deputy fire marshals to elect coverage
by the state fire marshals subplan; amending Minnesota Statutes 2024, sections
11A.07, subdivision 5; 352.021, subdivision 2; 352.029, subdivisions 1, 2, 2a;
352.115, subdivisions 7a, 8, 9; 352.87, subdivisions 1, 2; Minnesota Statutes 2025
Supplement, sections 11A.04; 11A.07, subdivision 4; 352.029, subdivision 3;
352.905, by adding a subdivision; 352.907, by adding a subdivision; Laws 2025,
chapter 39, article 1, section 8; repealing Minnesota Statutes 2024, section 352.87,
subdivision 8.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2025 Supplement, section 11A.04, is amended to read:
11A.04 DUTIES AND POWERS; APPROPRIATION.
The state board shall:
(1) Act as trustees for each fund for which it invests or manages money in accordance
with the standard of care set forth in section 11A.09 if state assets are involved and in
accordance with chapter 356A if pension assets are involved.
(2) Formulate policies and procedures deemed necessary and appropriate to carry out
its functions. Procedures adopted by the new text begin state new text end board must allow fund beneficiaries and
members of the public to become informed of proposed board actions. Procedures and
policies of the new text begin state new text end board are not subject to the Administrative Procedure Act.
(3) Employ an executive director as provided in section 11A.07.
(4) deleted text begin Employdeleted text end new text begin Retainnew text end investment advisors and consultants as it deems necessary.
(5) Prescribe policies concerning personal investments of all employees of the new text begin state
new text end board to prevent conflicts of interest.
(6) Maintain a record of its proceedings.
(7) As it deems necessary, establish advisory committees subject to section 15.059 to
assist the new text begin state new text end board in carrying out its duties.
(8) Not permit state funds to be used for the underwriting or direct purchase of municipal
securities from the issuer or the issuer's agent.
(9) Direct the commissioner of management and budget to sell property other than money
that has escheated to the state when the new text begin state new text end board determines that sale of the property is
in the best interest of the state. Escheated property must be sold to the highest bidder in the
manner and upon terms and conditions prescribed by the new text begin state new text end board.
(10) Undertake any other activities necessary to implement the duties and powers set
forth in this section.
(11) Establish a formula or formulas to measure management performance and return
on investment. Public pension funds in the state shall utilize the formula or formulas
developed by the state board.
(12) Except as otherwise provided in article XI, section 8, of the Constitution of the state
of Minnesota, deleted text begin employdeleted text end new text begin retainnew text end , at its discretion, qualified deleted text begin privatedeleted text end new text begin externalnew text end firms to invest deleted text begin anddeleted text end new text begin ,new text end
managenew text begin , or provide services with respect tonew text end the assets of funds over which the state board
has investment management responsibility. deleted text begin There is annually appropriated to the state board,
from the assets of the funds for which the state board utilizes a private investment manager,
sums sufficient to pay the costs of employing private firms. Each year, by January 15, the
board shall report to the governor and legislature on the cost and the investmentdeleted text end new text begin The state
board must include in the report required under section 11A.07, subdivision 4, clause (8),
the management fees paid under this clause and thenew text end performance of each investment manager
deleted text begin employeddeleted text end new text begin retainednew text end by the new text begin state new text end board.
(13) Adopt an investment policy statement that includes investment objectives, asset
allocation, and the investment management structure for the retirement fund assets under
its control. The statement may be revised at the discretion of the state board. The state board
shall seek the advice of the council regarding its investment policy statement. Adoption of
the statement is not subject to chapter 14.
(14) Adopt a compensation plan setting the terms and conditions of employment for
unclassified employees of the state board pursuant to section 43A.18, subdivision 3b.
(15) Contract, as necessary, with the board of trustees of the Minnesota State Colleges
and Universities System for the provision of investment review and selection services under
section 354B.25, subdivision 3, and arrange for the receipt of payment for those services.
There is annually appropriated to the state board, from the assets of the funds for which
the state board provides investment services, sums sufficient to pay the deleted text begin costs of all necessarydeleted text end
expenses deleted text begin for the administrationdeleted text end of the new text begin state new text end boardnew text begin , including any fees or expenses charged
by advisors, consultants, or external firmsnew text end . These sums will be deposited in the State Board
of Investment operating account, which must be established by the commissioner of
management and budgetnew text begin in the special revenue fundnew text end .
Sec. 2.
Minnesota Statutes 2025 Supplement, section 11A.07, subdivision 4, is amended
to read:
Subd. 4.
Duties and powers.
The new text begin executive new text end director, at the direction of the state board,
shall:
(1) plan, direct, coordinate, and execute administrative and investment functions in
conformity with the policies and directives of the state board and the requirements of this
chapter and of chapter 356A;
(2) prepare and submit biennial and annual budgets to the new text begin state new text end board and with the
approval of the new text begin state new text end board submit the budgets to the Department of Management and Budget;
(3) employ professional and clerical staff as necessary;
(4) report to the state board on all operations under the new text begin executive new text end director's control and
supervision;
(5) maintain accurate and complete records of securities transactions and official
activities;
(6) establish a policy, which is subject to state board approval, relating to the purchase
and sale of securities on the basis of competitive offerings or bids;
(7) cause securities acquired to be kept in the custody of the commissioner of management
and budget or other depositories consistent with chapter 356A, as the state board deems
appropriate;
(8) prepare and file with the director of the Legislative Reference Library a report
summarizing the activities of the state board, the council, and the new text begin executive new text end director during
the preceding fiscal year;
(9) include on the state board's website its annual report and an executive summary of
its quarterly reports;
(10) require state officials from any department or agency to produce and provide access
to any financial documents the state board deems necessary in the conduct of its investment
activities;
new text begin
(11) with respect to any fund for which the state board provides investment services,
modify the billing procedure or apportionment of expenses under subdivision 5 to the extent
the executive director determines is appropriate or necessary, with any such modification
consistent with the applicable duties in this chapter and section 356A.04;
new text end
deleted text begin (11)deleted text end new text begin (12)new text end receive and expend legislative appropriations; and
deleted text begin (12)deleted text end new text begin (13)new text end undertake any other activities necessary to implement the duties and powers
set forth in this subdivision consistent with chapter 356A.
Sec. 3.
Minnesota Statutes 2024, section 11A.07, subdivision 5, is amended to read:
Subd. 5.
Apportionment of expenses.
new text begin (a) new text end The annual expenses incurred by the deleted text begin State
Board of Investment willdeleted text end new text begin state board, including any fees or expenses charged by advisors,
consultants, or external firms, mustnew text end be apportioned among deleted text begin the state general fund, the
retirement funds administered by the Minnesota State Retirement System, Public Employees
Retirement Association, and Teachers Retirement Association, anddeleted text end all deleted text begin otherdeleted text end funds deleted text begin as follows:deleted text end new text begin
for which the state board provides investment services, in accordance with this subdivision.
There is annually appropriated to the state board, from the assets of all funds for which the
state board provides investment services, sums sufficient to pay the apportioned expenses.
These sums must be deposited in the State Board of Investment operating account, which
must be established by the commissioner of management and budget in the special revenue
fund. The sums must be apportioned as follows:
new text end
deleted text begin
(1) on a biennial basis, the State Board of Investment, in accordance with biennial budget
procedures established by the commissioner of management and budget, may request a
direct appropriation that represents the portion of the State Board of Investment expenses
necessary to provide investment services to the state general fund. This appropriation must
be deposited in the State Board of Investment operating account;
deleted text end
deleted text begin (2)deleted text end new text begin (1)new text end the executive director shall new text begin first new text end apportion deleted text begin the actualdeleted text end new text begin expenses allocable solely
to a specific fund, or in the case of multiple funds, among the funds proportionally based
on weighted average assets under management during the fiscal year; and
new text end
new text begin (2) next, the executive director shall apportion the new text end expenses incurred by the deleted text begin State Board
of Investmentdeleted text end new text begin state boardnew text end , less the deleted text begin charge to the state general funddeleted text end new text begin charges apportioned
under clause (1) and accounting for any modification made pursuant to subdivision 4, clause
(11)new text end , among the funds deleted text begin whose assets are invested by the State Board of Investment, with the
exception of the state general fund,deleted text end new text begin for which the state board provides investment services,
with such expenses allocated proportionallynew text end based on the weighted average assets under
management during the fiscal year. deleted text begin The amounts necessary to pay these charges are
apportioned from the investment earnings of each fund. Receipts must be credited to the
State Board of Investment operating account;
deleted text end
deleted text begin (3)deleted text end new text begin (b)new text end The deleted text begin actualdeleted text end expenses apportioned and charged to the fundsnew text begin under paragraph (a)new text end ,
with the exception of deleted text begin the state general fund anddeleted text end the retirement funds administered by the
Minnesota State Retirement System, Public Employees Retirement Association, and Teachers
Retirement Association, must be calculated, billed, and paid new text begin at least new text end on a quarterly basis in
accordance with procedures for interdepartmental payments established by the commissioner
of management and budgetdeleted text begin ; anddeleted text end new text begin . Sums received to pay the expenses must be deposited in
the operating account under section 11A.04.
new text end
deleted text begin (4)deleted text end new text begin (c)new text end The annual estimated expenses to be incurred by the deleted text begin State Board of Investmentdeleted text end new text begin
state boardnew text end that will be payable by the retirement funds administered by the Minnesota State
Retirement System, Public Employees Retirement Association, and Teachers Retirement
Association must be deposited in the State Board of Investment operating accountnew text begin under
section 11A.04new text end onnew text begin or aboutnew text end the first business day of each fiscal year. A reconciliation of the
deleted text begin actualdeleted text end expensesnew text begin allocable to each retirement fundnew text end compared to thenew text begin applicablenew text end estimated deleted text begin costsdeleted text end new text begin
expensesnew text end must occurnew text begin at least annuallynew text end at the end of deleted text begin eachdeleted text end new text begin thenew text end fiscal year deleted text begin with any surplus ordeleted text end new text begin .
Anynew text end deficit deleted text begin being credited or debited to each of the respective funds. The State Board of
Investment must present a statement of accrued actualdeleted text end new text begin determined by such reconciliation
is due and payable to the State Board of Investment operating account promptly upon notice
of the amount due. Any fiscal year-end surplus may, at the executive director's discretion,
be retained in the operating account and credited against the following fiscal year's estimatednew text end
expenses deleted text begin todeleted text end new text begin ofnew text end eachnew text begin respective retirementnew text end fund deleted text begin at the end of each quarter during each fiscal
yeardeleted text end .new text begin The executive director must refund to the respective retirement fund any portion of
any surplus not credited against the following fiscal year's estimated expenses.
new text end
Sec. 4.
Minnesota Statutes 2024, section 352.021, subdivision 2, is amended to read:
Subd. 2.
State employees covered.
Every person who becomes a state employee as
defined in section 352.01 is covered by the general state employees retirement plannew text begin , unless
the state employee is covered by the correctional employees retirement plan under section
352.905new text end . Acceptance of state employment or continuance in state service is deemed to be
consent new text begin by the state employee new text end to have deductions made from salary for deposit to the credit
of the account of the state employee in the retirement fundnew text begin of the plan that provides retirement
coverage for the state employeenew text end .
Sec. 5.
Minnesota Statutes 2024, section 352.029, subdivision 1, is amended to read:
Subdivision 1.
Qualifications.
new text begin (a) new text end Unless deleted text begin alreadydeleted text end specifically included under section
352.01, subdivision 2a, or unless specifically excluded under section 352.01, subdivision
2b, a state employee new text begin covered by the general state employees retirement plan who is new text end on leave
of absence without pay to provide service as an employee or officer of a labor organization
that is an exclusive bargaining agent representing state employees may elect under
subdivision 2 to be covered by the general state employees retirement plan deleted text begin of the Minnesota
State Retirement Systemdeleted text end for service with the labor organization, subject to the limitations
set forth in subdivisions 2a and 2b.
new text begin
(b) Unless specifically included under section 352.01, subdivision 2a, or unless
specifically excluded under section 352.01, subdivision 2b, a state employee covered by
the correctional employees retirement plan who is on leave of absence without pay to provide
service as an employee or officer of a labor organization that is an exclusive bargaining
agent representing state employees may elect under subdivision 2 to be covered by the
correctional employees retirement plan for service with the labor organization, subject to
the limitations set forth in subdivisions 2a and 2b.
new text end
Sec. 6.
Minnesota Statutes 2024, section 352.029, subdivision 2, is amended to read:
Subd. 2.
Election.
A person described in subdivision 1 is covered by the deleted text begin systemdeleted text end new text begin general
employees retirement plan under subdivision 1, paragraph (a), or the correctional employees
retirement plan under subdivision 1, paragraph (b),new text end if new text begin the person delivers a new text end written election
to be covered deleted text begin is delivereddeleted text end to the executive director within 90 days of being employed by
the labor organizationdeleted text begin ,deleted text end or within 90 days of starting the first leave of absence deleted text begin with an
exclusive bargaining agentdeleted text end new text begin to provide service as an employee or officer of a labor
organizationnew text end , whichever is later.
Sec. 7.
Minnesota Statutes 2024, section 352.029, subdivision 2a, is amended to read:
Subd. 2a.
Limitations on salary for benefits and contributions.
(a) The covered salary
for a labor organization employee who is a member under section 352.01, subdivision 2a,
paragraph (a), or who qualifies for membership under this section deleted text begin or section 352.75deleted text end is limited
to the lesser of:
(1) the employee's deleted text begin actualdeleted text end salary as defined under section 352.01, subdivision 13; or
(2) 75 percent of the salary of the governor as set under section 15A.082.
(b) The limited covered salary determined under this subdivision must be used in
determining employee, employer, and new text begin supplemental new text end employer deleted text begin additionaldeleted text end contributions under
deleted text begin sectiondeleted text end new text begin sectionsnew text end 352.04, subdivisions 2 and 3, new text begin and 352.92 new text end and in determining retirement
annuities and other benefits under this chapter and chapter 356.
Sec. 8.
Minnesota Statutes 2025 Supplement, section 352.029, subdivision 3, is amended
to read:
Subd. 3.
Contributions.
new text begin (a) new text end The employee and employer contributions required by
section 352.04deleted text begin ,deleted text end new text begin for employees covered by the general state employees retirement plannew text end or
by section 352.92 for employees covered by deleted text begin section 352.905,deleted text end new text begin the correctional employees
retirement plan new text end are the obligation of the employee deleted text begin who is a member under section 352.01,
subdivision 2a, paragraph (a), ordeleted text end who chooses coverage under this section. However, the
employing labor organization may pay the employer contributionsnew text begin to the general state
employees retirement fund as required by section 352.04 for employees covered by the
general state employees retirement plan or to the correctional employees retirement fund
as required by section 352.92 for employees covered by the correctional employees retirement
plannew text end .
new text begin (b) new text end Contributions made by the employee must be made by salary deduction. deleted text begin The
employing labor organization shall pay all contributions to the system as required by section
352.04, or by section 352.92 for employees covered by section 352.905.
deleted text end
Sec. 9.
Minnesota Statutes 2024, section 352.115, subdivision 7a, is amended to read:
Subd. 7a.
Application procedure.
(a) The deleted text begin filing of andeleted text end application for an annuity, refund,
disability benefit, survivor benefit, death benefit, or other deleted text begin monthlydeleted text end benefit authorized by
this chapter or chapter 3A, 352B, 352D, or 490 must comply with this subdivision.
(b) Filing of an application deleted text begin under paragraph (a) is not complete untildeleted text end new text begin is effective on the
datenew text end an original application deleted text begin and supporting documents aredeleted text end new text begin isnew text end received in an office of the
system or received by a person authorized by the director. An original application may not
be an electronic copy or facsimile copy and if received in an office of the system, must be
delivered by personal service or mail.
(c) deleted text begin In this subdivision,deleted text end new text begin To complete the application, supporting documents must be
received in an office of the system or received by a person authorized by the director no
later than 60 days after filing the application. Supporting documents are not required to be
original documents except as determined by the director.new text end deleted text begin "deleted text end Supporting documentsdeleted text begin "deleted text end are:
(1) documents sufficient to verify birthnew text begin datenew text end ;
(2) documents sufficient to verify marital status or establish the terms of a divorce, if
applicable; and
(3) the new text begin spousal new text end acknowledgment required by section 356.46, subdivision 3, paragraph
(b).
deleted text begin
Supporting documents are not required to be original documents except as determined by
the director.
deleted text end
Sec. 10.
Minnesota Statutes 2024, section 352.115, subdivision 8, is amended to read:
Subd. 8.
Accrual of annuity.
new text begin (a)new text end The application for an annuity must not be deleted text begin madedeleted text end new text begin filednew text end
more than 60 days before the deleted text begin timedeleted text end new text begin datenew text end the state employee or former state employee elects
to begin collecting a retirement annuity.
new text begin (b)new text end If the director determines an applicant for annuity has fulfilled the legal requirements
for an annuity, the director shall authorize the annuity payment in accordance with this
chapter and payment must be made as authorized.
new text begin (c)new text end An annuity shall begin to accrue no earlier than 180 days before the date the
application is filed with the director, but not before the day following the termination of
state service or before the day the employee is eligible to retire by reason of both age and
service requirements.
new text begin (d)new text end The retirement annuity shall cease with the last payment which had accrued during
the lifetime of the retired employee unless an optional annuity provided in section 352.116,
subdivision 3, had been selected and had become payable. The joint and last survivor annuity
shall cease with the last payment received by the survivor during the lifetime of the survivor.
If a retired employee had not selected an optional annuity, or a survivor annuity is not
payable under the option, and a spouse survives, the spouse is entitled only to the annuity
for the calendar month in which the retired employee died. If an optional annuity is payable
after the death of the retired employee, the survivor is entitled to the annuity for the calendar
month in which the retired employee died.
Sec. 11.
Minnesota Statutes 2024, section 352.115, subdivision 9, is amended to read:
Subd. 9.
Annuities payable monthly.
All annuities, and disability benefits authorized
by this chapter, must be paid in equal monthly installments and must not be increased,
decreased, or revoked except as provided in this chapternew text begin or chapter 356new text end .
Sec. 12.
Minnesota Statutes 2024, section 352.87, subdivision 1, is amended to read:
Subdivision 1.
Eligibility.
new text begin (a) new text end A member of the general new text begin state employees retirement new text end plan
who is employed by the Department of Public Safety, State Fire Marshal Division, as a
deputy state fire marshal, fire/arson investigator, deleted text begin who elects special benefit coverage under
subdivision 8,deleted text end is entitled to retirement deleted text begin benefitsdeleted text end or disability benefits, as applicable, as stated
in this section for eligible service under this section rendered after July 1, 1999, for which
allowable service credit is receiveddeleted text begin .deleted text end new text begin if the member is first employed as a deputy state fire
marshal, fire/arson investigator:
new text end
new text begin
(1) before July 1, 2026, and the member elected special benefit coverage under the laws
in effect on the day the member was first employed as a deputy state fire marshal, fire/arson
investigator; or
new text end
new text begin
(2) after June 30, 2026.
new text end
new text begin (b)new text end The covered member must be at least age 55 to qualify for the retirement annuity
specified in subdivision 3.
Sec. 13.
Minnesota Statutes 2024, section 352.87, subdivision 2, is amended to read:
Subd. 2.
Retirement annuity eligibility.
A person specified in subdivision 1 who meets
all eligibility requirements specified in this chapter applicable to deleted text begin general plandeleted text end members new text begin of
the general state employees retirement plan new text end is eligible for retirement benefits as specified
in subdivision 3.
Sec. 14.
Minnesota Statutes 2025 Supplement, section 352.905, is amended by adding a
subdivision to read:
new text begin Subd. 8. new text end
new text begin Employees of labor organization. new text end
new text begin
Employees who meet the coverage and
election requirements of section 352.029 will continue to be covered by the correctional
employees retirement plan.
new text end
Sec. 15.
Minnesota Statutes 2025 Supplement, section 352.907, is amended by adding a
subdivision to read:
new text begin Subd. 7. new text end
new text begin Certain laws not applicable to the membership committee. new text end
new text begin
(a) Meetings of
the correctional plan membership committee are not subject to chapter 13D.
new text end
new text begin
(b) The correctional plan membership committee is not an agency for the purposes of
sections 15.0597 and 15.0599.
new text end
Sec. 16.
Laws 2025, chapter 39, article 1, section 8, is amended to read:
Sec. 8. STATE BOARD OF INVESTMENT
|
$ |
139,000 |
$ |
deleted text begin
139,000 deleted text end new text begin -0- new text end |
||
Sec. 17. new text begin ELECTION OF COVERAGE FOR CURRENT DEPUTY STATE FIRE
MARSHALS.
new text end
new text begin Subdivision 1. new text end
new text begin Definition. new text end
new text begin
For purposes of this section, "eligible employee" means a
member of the general state employees retirement plan of the Minnesota State Retirement
System who began employment with the Department of Public Safety, State Fire Marshal
Division, as a deputy state fire marshal, fire/arson investigator, after July 31, 2021, and
before October 5, 2022.
new text end
new text begin Subd. 2. new text end
new text begin Election of coverage. new text end
new text begin
(a) An eligible employee may file a notice with the
executive director of the Minnesota State Retirement System on a form prescribed by the
executive director stating that the employee elects to be covered by section 352.87. Notice
must be filed no later than 60 days after enactment of this section.
new text end
new text begin
(b) Elections under this subdivision are irrevocable during any period of covered
employment.
new text end
new text begin
(c) An eligible employee who makes an election under this subdivision is entitled to
retirement or disability benefits, as applicable, as stated in section 352.87. Elected coverage
is effective retroactively from the first day of employment.
new text end
new text begin
(d) A failure to file a timely notice is deemed a waiver of coverage by section 352.87.
new text end
new text begin Subd. 3. new text end
new text begin Calculation of additional contributions due. new text end
new text begin
(a) Upon the request of an
eligible employee before the eligible employee files the notice electing coverage under
subdivision 2 or if an eligible employee files the notice electing coverage under subdivision
2, the executive director of the Minnesota State Retirement System must calculate:
new text end
new text begin
(1) the employee contributions that would have been deducted from the eligible
employee's salary starting with the first day of covered employment but were not deducted
because the eligible employee had not yet filed the notice electing coverage, plus interest
at the applicable rate or rates specified in section 356.59, subdivision 2; and
new text end
new text begin
(2) the employer contributions that would have been paid by the employer starting with
the eligible employee's first day of covered employment but were not deducted because the
eligible employee had not yet filed the notice electing coverage, plus interest at the applicable
rate or rates specified in section 356.59, subdivision 2.
new text end
new text begin
(b) The executive director must inform the eligible employee and the Department of
Public Service of the amounts calculated under paragraph (a) no later than 30 days after
receiving the request or the notice electing coverage from the eligible employee.
new text end
new text begin Subd. 4. new text end
new text begin Payment of additional contributions. new text end
new text begin
(a) If an eligible employee files a notice
electing coverage under subdivision 2, the eligible employee must pay the employee
contributions and interest computed under subdivision 3, paragraph (a), to the general
employees retirement fund of the Minnesota State Retirement System in a lump sum.
Payment must be made within six months of filing the notice electing coverage under
subdivision 2 or on the date the eligible employee terminates employment as a deputy state
fire marshal, fire/arson investigator, whichever is earlier.
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(b) The Department of Public Safety must pay the employer contributions and interest
computed under subdivision 3, paragraph (a), to the general employees retirement fund of
the Minnesota State Retirement System within 30 days of the date on which the executive
director of the Minnesota State Retirement System certifies to the Department of Public
Safety that the eligible employee made the payment required under paragraph (a).
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Sec. 18. new text begin REPEALER.
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Minnesota Statutes 2024, section 352.87, subdivision 8,
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is repealed.
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Sec. 19. new text begin EFFECTIVE DATE.
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Sections 1 to 18 are effective July 1, 2026.
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APPENDIX
Repealed Minnesota Statutes: H4074-1
352.87 STATE FIRE MARSHAL DIVISION EMPLOYEES.
Subd. 8.
Election of coverage.
To be covered by this section, an employee of the Department of Public Safety described in subdivision 1 who is employed in a position described in that subdivision must file a notice with the executive director of the system on a form prescribed by the executive director stating that the employee elects to be covered by this section. Notice must be filed within 90 days of employment. Elected coverage is effective retroactively as of the first day of employment. Amounts that would have been deducted from the employee's salary starting with the first day of employment but were not deducted because the employee had not yet filed the election must be deducted from the employee's future salary in accordance with a schedule of deductions determined by the executive director and the Department of Public Safety. Elections are irrevocable during any period of covered employment. A failure to file a timely notice is deemed a waiver of coverage by this section.