1.1 	A bill for an act
1.2 	 relating to retirement; Minnesota State Retirement System; making administrative 
1.3 	and technical changes; Public Employees Retirement Association local government 
1.4 	correctional service retirement plan; reducing the employee and employer 
1.5 	contribution rates and increasing postretirement adjustments; public employees 
1.6 	police and fire retirement plan; reducing the waiting period for post-retirement 
1.7 	adjustments; providing direct state aid; Teachers Retirement Association; making 
1.8 	administrative changes; St. Paul Teachers Retirement Fund Association; decreasing 
1.9 	employee contributions; providing direct state aid; modifying the termination 
1.10 	process for firefighter relief associations; implementing recommendations of the 
1.11 	state auditor's fire relief association working group; special legislation for the 
1.12 	Maple Plain fire department termination of participation in the statewide volunteer 
1.13 	firefighter plan; modifying the definition of salary to exclude pay for Minnesota 
1.14 	paid leave; requiring the employer of a reemployed annuitant to make employer 
1.15 	contributions to the pension plan that covers the annuitant; authorizing elected 
1.16 	officials to participate in the health care savings plan; Minnesota Secure Choice 
1.17 	Retirement Program; making administrative changes; revising enrollment, notice, 
1.18 	annual reporting, and board of director requirements; State Board of Investment; 
1.19 	modifying expense apportionment among funds managed by the State Board of 
1.20 	Investment; establishing work groups on relief associations and duty disability; 
1.21 	establishing the Probation and Telecommunicator Retirement subplan administered 
1.22 	by the Minnesota State Retirement System; establishing the Local Government 
1.23 	Probation and Telecommunicator Retirement Plan administered by the Public 
1.24 	Employees Retirement Association; transfers from the general fund to the new 
1.25 	probation and telecommunicator to fund a temporary reduction in employee 
1.26 	contribution rates; special legislation for an individual's periods of omitted service; 
1.27 	special legislation for an individual with a missing higher education individual 
1.28 	retirement account; making technical changes;amending Minnesota Statutes 2024, 
1.29 	sections 6.496; 11A.07, subdivision 5; 11A.17, subdivision 1; 43A.346, 
1.30 	subdivisions 8, 10; 144F.01, subdivision 2; 187.03, by adding subdivisions; 187.05, 
1.31 	subdivisions 1, 7, by adding a subdivision; 187.06, subdivision 3; 187.07, by adding 
1.32 	a subdivision; 187.08, subdivisions 1, 2, 6, 8; 299K.03, subdivision 3; 299N.02, 
1.33 	subdivision 1; 352.01, subdivision 13; 352.021, subdivision 2; 352.029, subdivisions 
1.34 	1, 2, 2a; 352.115, subdivisions 7a, 8, 9, 10; 352.1155, subdivision 3; 352.75, 
1.35 	subdivision 2; 352.87, subdivisions 1, 2; 352.951; 352.98, subdivisions 1, 3; 353.01, 
1.36 	subdivisions 10, 16, 37; 353.0141, subdivision 1; 353.031, subdivisions 1, 2, 3; 
1.37 	353.15, subdivision 1; 353.27, subdivisions 4, 7b, 11, 12, 12a, 12b, 13, 14; 353.30, 
1.38 	subdivision 3; 353.33, subdivisions 3, 7a, 11; 353.34, subdivisions 1, 3; 353.37, 
2.1 	subdivision 5; 353.371, subdivisions 6, 7; 353.46, subdivision 2; 353D.03, 
2.2 	subdivision 6; 353E.03, subdivisions 1, 2; 353G.02, subdivision 4; 353G.08, 
2.3 	subdivision 1; 353G.18, subdivision 4; 354.05, subdivisions 35, 37, by adding a 
2.4 	subdivision; 354.07, subdivision 2; 354.44, subdivision 5; 354.444, subdivisions 
2.5 	2, 3, 5; 354.445; 354.48, subdivisions 4, 6; 354A.011, subdivisions 14b, 24; 
2.6 	354A.021, subdivision 8; 354A.095; 354A.12, subdivisions 1, 3a, 3c; 354A.29, 
2.7 	subdivision 7; 356.20, subdivision 2; 356.214, subdivision 1; 356.216; 356.219, 
2.8 	subdivision 1; 356.24, subdivision 3; 356.30, subdivisions 1, 3, by adding a 
2.9 	subdivision; 356.302, subdivisions 1, 7; 356.303, subdivision 4; 356.315, 
2.10 	subdivision 9; 356.32, subdivision 2; 356.401, subdivision 3; 356.415, subdivisions 
2.11 	1g, 2, by adding a subdivision; 356.461, subdivisions 1, 2; 356.465, subdivision 
2.12 	3; 356.47, subdivision 3; 356.48, subdivision 1; 356.611, subdivision 6; 356.635, 
2.13 	subdivision 2a; 356.65, subdivision 1; 356B.02; 423A.02, subdivisions 1b, 3; 
2.14 	424A.001, subdivisions 8, 9, 9a, 9b; 424A.01, subdivision 3; 424A.014, subdivision 
2.15 	1; 424A.016, subdivision 4; 424B.10, subdivision 1b; 424B.22, subdivisions 5, 7, 
2.16 	8, 9, as amended; 465.90; Minnesota Statutes 2025 Supplement, sections 11A.04; 
2.17 	11A.07, subdivision 4; 151.37, subdivision 12; 181.101; 187.03, subdivisions 5, 
2.18 	6a; 187.05, subdivisions 1a, 4; 187.07, subdivision 1; 187.08, subdivision 3; 187.11; 
2.19 	187.12, subdivision 1; 299A.465, subdivision 1; 352.029, subdivision 3; 352.905, 
2.20 	by adding a subdivision; 352.907, by adding a subdivision; 353.01, subdivisions 
2.21 	2a, 2b; 353.65, subdivision 3b; 353D.01, subdivision 2; 353D.02, subdivision 7; 
2.22 	356.215, subdivisions 8, 11; 356.24, subdivision 1; 356.415, subdivision 1c; 
2.23 	423A.022, subdivision 2; 424A.016, subdivision 6; 424A.05, subdivision 3; Laws 
2.24 	2022, chapter 65, article 3, section 1, subdivisions 2, as amended, 3, as amended; 
2.25 	Laws 2025, chapter 39, article 1, section 8; proposing coding for new law in 
2.26 	Minnesota Statutes, chapters 187; 352; 424A; proposing coding for new law as 
2.27 	Minnesota Statutes, chapter 353H; repealing Minnesota Statutes 2024, sections 
2.28 	352.87, subdivision 8; 424A.01, subdivision 6; Minnesota Statutes 2025 
2.29 	Supplement, section 187.07, subdivision 3.
2.30 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.31 	ARTICLE 1
2.32 	MINNESOTA STATE RETIREMENT SYSTEM

2.33 	Section 1. Minnesota Statutes 2024, section 352.021, subdivision 2, is amended to read:
2.34 		Subd. 2.State employees covered. Every person who becomes a state employee as 
2.35 	defined in section 352.01 is covered by the general state employees retirement plan, unless 
2.36 	the state employee is covered by the correctional employees retirement plan under section 
2.37 	352.905. Acceptance of state employment or continuance in state service is deemed to be 
2.38 	consent by the state employee to have deductions made from salary for deposit to the credit 
2.39 	of the account of the state employee in the retirement fund of the plan that provides retirement 
2.40 	coverage for the state employee.

2.41 	Sec. 2. Minnesota Statutes 2024, section 352.029, subdivision 1, is amended to read:
2.42 		Subdivision 1.Qualifications. (a) Unless already specifically included under section 
2.43 	352.01, subdivision 2a, or unless specifically excluded under section 352.01, subdivision 
2.44 	2b, a state employee covered by the general state employees retirement plan who is on leave 
3.1 	of absence without pay to provide service as an employee or officer of a labor organization 
3.2 	that is an exclusive bargaining agent representing state employees may elect under 
3.3 	subdivision 2 to be covered by the general state employees retirement plan of the Minnesota 
3.4 	State Retirement System for service with the labor organization, subject to the limitations 
3.5 	set forth in subdivisions 2a and 2b.
3.6 	(b) Unless specifically included under section 352.01, subdivision 2a, or unless 
3.7 	specifically excluded under section 352.01, subdivision 2b, a state employee covered by 
3.8 	the correctional employees retirement plan who is on leave of absence without pay to provide 
3.9 	service as an employee or officer of a labor organization that is an exclusive bargaining 
3.10 	agent representing state employees may elect under subdivision 2 to be covered by the 
3.11 	correctional employees retirement plan for service with the labor organization, subject to 
3.12 	the limitations set forth in subdivisions 2a and 2b.

3.13 	Sec. 3. Minnesota Statutes 2024, section 352.029, subdivision 2, is amended to read:
3.14 		Subd. 2.Election. A person described in subdivision 1 is covered by the system general 
3.15 	employees retirement plan under subdivision 1, paragraph (a), or the correctional employees 
3.16 	retirement plan under subdivision 1, paragraph (b), if the person delivers a written election 
3.17 	to be covered is delivered to the executive director within 90 days of being employed by 
3.18 	the labor organization, or within 90 days of starting the first leave of absence with an 
3.19 	exclusive bargaining agent to provide service as an employee or officer of a labor 
3.20 	organization, whichever is later.

3.21 	Sec. 4. Minnesota Statutes 2024, section 352.029, subdivision 2a, is amended to read:
3.22 		Subd. 2a.Limitations on salary for benefits and contributions. (a) The covered salary 
3.23 	for a labor organization employee who is a member under section 352.01, subdivision 2a, 
3.24 	paragraph (a), or who qualifies for membership under this section or section 352.75 is limited 
3.25 	to the lesser of:
3.26 	(1) the employee's actual salary as defined under section 352.01, subdivision 13; or
3.27 	(2) 75 percent of the salary of the governor as set under section 15A.082.
3.28 	(b) The limited covered salary determined under this subdivision must be used in 
3.29 	determining employee, employer, and supplemental employer additional contributions under 
3.30 	section sections352.04, subdivisions 2 and 3, and 352.92 and in determining retirement 
3.31 	annuities and other benefits under this chapter and chapter 356.

4.1 	Sec. 5. Minnesota Statutes 2025 Supplement, section 352.029, subdivision 3, is amended 
4.2 	to read:
4.3 		Subd. 3.Contributions. (a) The employee and employer contributions required by 
4.4 	section 352.04, for employees covered by the general state employees retirement plan or 
4.5 	by section 352.92 for employees covered by section 352.905,the correctional employees 
4.6 	retirement plan are the obligation of the employee who is a member under section 352.01, 
4.7 	subdivision 2a, paragraph (a), or who chooses coverage under this section. However, the 
4.8 	employing labor organization may pay the employer contributions to the general state 
4.9 	employees retirement fund as required by section 352.04 for employees covered by the 
4.10 	general state employees retirement plan or to the correctional employees retirement fund 
4.11 	as required by section 352.92 for employees covered by the correctional employees retirement 
4.12 	plan.
4.13 	(b) Contributions made by the employee must be made by salary deduction. The 
4.14 	employing labor organization shall pay all contributions to the system as required by section 
4.15 	352.04, or by section 352.92 for employees covered by section 352.905.

4.16 	Sec. 6. Minnesota Statutes 2024, section 352.115, subdivision 7a, is amended to read:
4.17 		Subd. 7a.Application procedure. (a) The filing of an application for an annuity, refund, 
4.18 	disability benefit, survivor benefit, death benefit, or other monthly benefit authorized by 
4.19 	this chapter or chapter 3A, 352B, 352D, or 490 must comply with this subdivision.
4.20 	(b) Filing of an application under paragraph (a) is not complete until is effective on the 
4.21 	date an original application and supporting documents are is received in an office of the 
4.22 	system or received by a person authorized by the director. An original application may not 
4.23 	be an electronic copy or facsimile copy and if received in an office of the system, must be 
4.24 	delivered by personal service or mail.
4.25 	(c) In this subdivision, To complete the application, supporting documents must be 
4.26 	received in an office of the system or received by a person authorized by the director no 
4.27 	later than 60 days after filing the application. Supporting documents are not required to be 
4.28 	original documents except as determined by the director."Supporting documents" are:
4.29 	(1) documents sufficient to verify birth date;
4.30 	(2) documents sufficient to verify marital status or establish the terms of a divorce, if 
4.31 	applicable; and
4.32 	(3) the spousal acknowledgment required by section 356.46, subdivision 3, paragraph 
4.33 	(b).
5.1 	Supporting documents are not required to be original documents except as determined by 
5.2 	the director.

5.3 	Sec. 7. Minnesota Statutes 2024, section 352.115, subdivision 8, is amended to read:
5.4 		Subd. 8.Accrual of annuity. (a) The application for an annuity must not be made filed
5.5 	more than 60 days before the time date the state employee or former state employee elects 
5.6 	to begin collecting a retirement annuity.
5.7 	(b) If the director determines an applicant for annuity has fulfilled the legal requirements 
5.8 	for an annuity, the director shall authorize the annuity payment in accordance with this 
5.9 	chapter and payment must be made as authorized.
5.10 	(c) An annuity shall begin to accrue no earlier than 180 days before the date the 
5.11 	application is filed with the director, but not before the day following the termination of 
5.12 	state service or before the day the employee is eligible to retire by reason of both age and 
5.13 	service requirements.
5.14 	(d) The retirement annuity shall cease with the last payment which had accrued during 
5.15 	the lifetime of the retired employee unless an optional annuity provided in section 352.116, 
5.16 	subdivision 3, had been selected and had become payable. The joint and last survivor annuity 
5.17 	shall cease with the last payment received by the survivor during the lifetime of the survivor. 
5.18 	If a retired employee had not selected an optional annuity, or a survivor annuity is not 
5.19 	payable under the option, and a spouse survives, the spouse is entitled only to the annuity 
5.20 	for the calendar month in which the retired employee died. If an optional annuity is payable 
5.21 	after the death of the retired employee, the survivor is entitled to the annuity for the calendar 
5.22 	month in which the retired employee died.

5.23 	Sec. 8. Minnesota Statutes 2024, section 352.115, subdivision 9, is amended to read:
5.24 		Subd. 9.Annuities payable monthly. All annuities, and disability benefits authorized 
5.25 	by this chapter, must be paid in equal monthly installments and must not be increased, 
5.26 	decreased, or revoked except as provided in this chapter or chapter 356.

5.27 	Sec. 9. Minnesota Statutes 2024, section 352.87, subdivision 1, is amended to read:
5.28 		Subdivision 1.Eligibility. (a) A member of the general state employees retirement plan 
5.29 	who is employed by the Department of Public Safety, State Fire Marshal Division, as a 
5.30 	deputy state fire marshal, fire/arson investigator, who elects special benefit coverage under 
5.31 	subdivision 8, is entitled to retirement benefits or disability benefits, as applicable, as stated 
5.32 	in this section for eligible service under this section rendered after July 1, 1999, for which 
6.1 	allowable service credit is received. if the member is first employed as a deputy state fire 
6.2 	marshal, fire/arson investigator:
6.3 	(1) before July 1, 2026, and the member elected special benefit coverage under the laws 
6.4 	in effect on the day the member was first employed as a deputy state fire marshal, fire/arson 
6.5 	investigator; or
6.6 	(2) after June 30, 2026.
6.7 	(b) The covered member must be at least age 55 to qualify for the retirement annuity 
6.8 	specified in subdivision 3.

6.9 	Sec. 10. Minnesota Statutes 2024, section 352.87, subdivision 2, is amended to read:
6.10 		Subd. 2.Retirement annuity eligibility. A person specified in subdivision 1 who meets 
6.11 	all eligibility requirements specified in this chapter applicable to general plan members of 
6.12 	the general state employees retirement plan is eligible for retirement benefits as specified 
6.13 	in subdivision 3.

6.14 	Sec. 11. Minnesota Statutes 2025 Supplement, section 352.905, is amended by adding a 
6.15 	subdivision to read:
6.16 		Subd. 8.Employees of labor organization. Employees who meet the coverage and 
6.17 	election requirements of section 352.029 will continue to be covered by the correctional 
6.18 	employees retirement plan.

6.19 	Sec. 12. Minnesota Statutes 2025 Supplement, section 352.907, is amended by adding a 
6.20 	subdivision to read:
6.21 		Subd. 7.Certain laws not applicable to the membership committee. (a) Meetings of 
6.22 	the correctional plan membership committee are not subject to chapter 13D.
6.23 	(b) The correctional plan membership committee is not an agency for the purposes of 
6.24 	sections 15.0597 and 15.0599.

6.25 	Sec. 13. ELECTION OF COVERAGE FOR CURRENT DEPUTY STATE FIRE 
6.26 	MARSHALS.
 6.27 		Subdivision 1.Definition. For purposes of this section, "eligible employee" means a 
6.28 	member of the general state employees retirement plan of the Minnesota State Retirement 
6.29 	System who began employment with the Department of Public Safety, State Fire Marshal 
7.1 	Division, as a deputy state fire marshal, fire/arson investigator, after July 31, 2021, and 
7.2 	before October 5, 2022.
7.3 		Subd. 2.Election of coverage. (a) An eligible employee may file a notice with the 
7.4 	executive director of the Minnesota State Retirement System on a form prescribed by the 
7.5 	executive director stating that the employee elects to be covered by section 352.87. Notice 
7.6 	must be filed no later than 60 days after enactment of this section.
7.7 	(b) Elections under this subdivision are irrevocable during any period of covered 
7.8 	employment.
7.9 	(c) An eligible employee who makes an election under this subdivision is entitled to 
7.10 	retirement or disability benefits, as applicable, as stated in section 352.87. Elected coverage 
7.11 	is effective retroactively from the first day of employment.
7.12 	(d) A failure to file a timely notice is deemed a waiver of coverage by section 352.87.
7.13 		Subd. 3.Calculation of additional contributions due. (a) Upon the request of an 
7.14 	eligible employee before the eligible employee files the notice electing coverage under 
7.15 	subdivision 2 or if an eligible employee files the notice electing coverage under subdivision 
7.16 	2, the executive director of the Minnesota State Retirement System must calculate:
7.17 	(1) the employee contributions that would have been deducted from the eligible 
7.18 	employee's salary starting with the first day of covered employment but were not deducted 
7.19 	because the eligible employee had not yet filed the notice electing coverage, plus interest 
7.20 	at the applicable rate or rates specified in section 356.59, subdivision 2; and
7.21 	(2) the employer contributions that would have been paid by the employer starting with 
7.22 	the eligible employee's first day of covered employment but were not deducted because the 
7.23 	eligible employee had not yet filed the notice electing coverage, plus interest at the applicable 
7.24 	rate or rates specified in section 356.59, subdivision 2.
7.25 	(b) The executive director must inform the eligible employee and the Department of 
7.26 	Public Safety of the amounts calculated under paragraph (a) no later than 30 days after 
7.27 	receiving the request or the notice electing coverage from the eligible employee.
7.28 		Subd. 4.Payment of additional contributions. (a) If an eligible employee files a notice 
7.29 	electing coverage under subdivision 2, the eligible employee must pay the employee 
7.30 	contributions and interest computed under subdivision 3, paragraph (a), to the general 
7.31 	employees retirement fund of the Minnesota State Retirement System in a lump sum. 
7.32 	Payment must be made within six months of filing the notice electing coverage under 
8.1 	subdivision 2 or on the date the eligible employee terminates employment as a deputy state 
8.2 	fire marshal, fire/arson investigator, whichever is earlier.
8.3 	(b) The Department of Public Safety must pay the employer contributions and interest 
8.4 	computed under subdivision 3, paragraph (a), to the general employees retirement fund of 
8.5 	the Minnesota State Retirement System within 30 days of the date on which the executive 
8.6 	director of the Minnesota State Retirement System certifies to the Department of Public 
8.7 	Safety that the eligible employee made the payment required under paragraph (a).

8.8 	Sec. 14. REPEALER.
 8.9 	Minnesota Statutes 2024, section 352.87, subdivision 8, is repealed.

8.10 	Sec. 15. EFFECTIVE DATE.
 8.11 	Sections 1 to 14 are effective July 1, 2026.

8.12 	ARTICLE 2
8.13 	PUBLIC EMPLOYEES RETIREMENT ASSOCIATION

8.14 	Section 1. Minnesota Statutes 2025 Supplement, section 353.65, subdivision 3b, is amended 
8.15 	to read:
8.16 		Subd. 3b.Direct state aid. (a) The state must pay $4,500,000 on October 1, 2018, and 
8.17 	October 1, 2019, to the public employees police and fire retirement plan. By October 1 of 
8.18 	each year after 2019, the state must pay $9,000,000 to the public employees police and fire 
8.19 	retirement plan.
8.20 	(b) By October 1 of each year after 2024, the state must pay $17,700,000 to the public 
8.21 	employees police and fire retirement plan.
8.22 	(c) By October 1 of each year after 2025, the state must pay $8,000,000 to the public 
8.23 	employees police and fire retirement plan.
8.24 	(c) (d) The commissioner of management and budget must pay the aid specified in this 
8.25 	subdivision. The amount required is annually appropriated from the general fund to the 
8.26 	commissioner of management and budget.
8.27 	(d) (e) The aid under paragraph (a) continues until the first day of the fiscal year following 
8.28 	three consecutive fiscal years in which, for each fiscal year, the actuarial value of assets of 
8.29 	the fund equals or exceeds 110 percent of the actuarial accrued liabilities as reported by the 
9.1 	actuary retained under section 356.214 in the annual actuarial valuation prepared under 
9.2 	section 356.215.
9.3 	(e) (f) The aid under paragraph (b) expires July 1, 2048.
9.4 	(g) The aid under paragraph (c) expires July 1, 2042.

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

9.6 	Sec. 2. Minnesota Statutes 2024, section 353E.03, subdivision 1, is amended to read:
9.7 		Subdivision 1.Member contributions. A member of the plan shall make an employee 
9.8 	contribution in an amount equal to 6.83six percent of salary.

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

9.10 	Sec. 3. Minnesota Statutes 2024, section 353E.03, subdivision 2, is amended to read:
9.11 		Subd. 2.Employer contributions. The employer shall contribute for a member of the 
9.12 	plan an amount equal to 10.25nine percent of salary.

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

9.14 	Sec. 4. Minnesota Statutes 2025 Supplement, section 356.415, subdivision 1c, is amended 
9.15 	to read:
9.16 		Subd. 1c.Public employees police and fire retirement plan. (a) Retirement annuity, 
9.17 	disability benefit, or survivor benefit recipients of the public employees police and fire 
9.18 	retirement plan are entitled to an annual postretirement adjustment, effective as of each 
9.19 	January 1, as follows:
9.20 	(1) for each annuitant or benefit recipient who will have has been receiving an the annuity 
9.21 	or benefit for at least 24 12 full months as of the immediate preceding June 30 of the calendar 
9.22 	year immediately before the effective date of the increase, a postretirement increase of one 
9.23 	percent must be applied each year to the amount of the monthly annuity or benefit of the 
9.24 	annuitant or benefit recipient; or
9.25 	(2) for each annuitant or benefit recipient who has been receiving the annuity or benefit 
9.26 	for at least 13 one full months month, but less than 24 12 months as of the immediate 
9.27 	preceding June 30 of the calendar year immediately before the effective date of the increase, 
9.28 	a postretirement increase of 1/12 of one percent for each full month that the person has been 
9.29 	receiving an annuity or benefit during the fiscal year in which the annuity or benefit was 
10.1 	effective must be applied each year to the amount of the monthly annuity or benefit of the 
10.2 	annuitant or benefit recipient.
10.3 	(b) An increase in annuity or benefit payments under this section subdivision must be 
10.4 	made automatically unless written notice is filed by the annuitant or benefit recipient with 
10.5 	the executive director of the Public Employees Retirement Association requesting that the 
10.6 	increase not be made.

10.7 	EFFECTIVE DATE. This section is effective for postretirement adjustments beginning 
10.8 	on or after January 1, 2027.

10.9 	Sec. 5. Minnesota Statutes 2024, section 356.415, subdivision 1g, is amended to read:
10.10 		Subd. 1g.Annual postretirement adjustments; PERA Public Employees Retirement 
10.11 	Association; local government correctional retirement plan. (a) Annuities, disability 
10.12 	benefits, and survivor benefits being paid from the local government correctional retirement 
10.13 	plan of the Public Employees Retirement Association shall be increased effective each 
10.14 	January 1 by the percentage of increase determined under this subdivision. The increase to 
10.15 	the annuity or benefit shall be determined by multiplying the monthly amount of the annuity 
10.16 	or benefit by the percentage of increase specified in paragraph (b), after taking into account 
10.17 	any reduction to the percentage of increase required under paragraph (d).
10.18 	(b) As of each January 1, The percentage of increase must be one percent unless the 
10.19 	federal Social Security Administration has announced a cost-of-living adjustment pursuant 
10.20 	to United States Code, title 42, section 415(i), in the last quarter of the preceding calendar 
10.21 	year that is greater than one percent. If the cost-of-living adjustment announced by the 
10.22 	federal Social Security Administration is greater than one percent, the percentage of increase 
10.23 	must be the same as the cost-of-living adjustment announced by the federal Social Security 
10.24 	Administration, but in no event may the percentage of increase exceed the applicable 
10.25 	maximum percentage in effect on January 1 under paragraph (c).
10.26 	(c) The applicable maximum percentage in effect on January 1 is 2.5 three percent, 
10.27 	unless either of the following is true, in which case the applicable maximum percentage is 
10.28 	1.5 percent:
10.29 	(1) the market value of assets equals or is less than 85 percent of the actuarial accrued 
10.30 	liabilities as reported by the plan's actuary in the most recent two consecutive annual actuarial 
10.31 	valuations; or
10.32 	(2) the market value of assets equals or is less than 80 percent of the actuarial accrued 
10.33 	liabilities as reported by the plan's actuary in the most recent annual actuarial valuation. If, 
11.1 	on January 1 after a year during which the applicable maximum percentage was 1.5 percent, 
11.2 	neither clause (1) or (2) is true, then the applicable maximum percentage is 2.5 percent.
11.3 	(d)(1) If the recipient of an annuity, disability benefit, or survivor's benefit has been 
11.4 	receiving the annuity or benefit for at least 12 full months as of the June 30 of the calendar 
11.5 	year immediately before the effective date of the increase, there is no reduction in the 
11.6 	percentage of increase.
11.7 	(2) If the recipient of an annuity, disability benefit, or survivor's benefit has been receiving 
11.8 	the annuity or benefit for at least one month, but less than 12 full months, as of the June 30 
11.9 	of the calendar year immediately preceding the effective date of the increase, the percentage 
11.10 	of increase is multiplied by a fraction, the numerator of which is the number of months the 
11.11 	annuity or benefit was received as of June 30 of the preceding calendar year and the 
11.12 	denominator of which is 12.
11.13 	(e) An increase in annuity or benefit payments under this section subdivision must be 
11.14 	made automatically unless written notice is filed by the recipient with the executive director 
11.15 	of the Public Employees Retirement Association requesting that the increase not be made.

11.16 	EFFECTIVE DATE. This section is effective for postretirement adjustments beginning 
11.17 	on or after January 1, 2027.

11.18 	ARTICLE 3
11.19 	TEACHERS RETIREMENT ASSOCIATION; ST. PAUL TEACHERS RETIREMENT 
11.20 	FUND ASSOCIATION

11.21 	Section 1. Minnesota Statutes 2024, section 354.05, subdivision 37, is amended to read:
11.22 		Subd. 37.Termination of teaching service. "Termination of teaching service" means 
11.23 	the withdrawal of a member from active teaching service by resignation or the termination 
11.24 	of the member's teaching contract by the employer. A member is not considered to have 
11.25 	terminated teaching service, if before the age of 62 59-1/2, and before the effective date of 
11.26 	the termination or retirement, the member has entered into a contract to resume teaching 
11.27 	service with an employing unit covered by the provisions of this chapter. A contract to 
11.28 	return to work after retirement for an active member who has attained age 62 59-1/2 must 
11.29 	comply with the provisions of section 354.444.

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

12.1 	Sec. 2. Minnesota Statutes 2024, section 354.05, is amended by adding a subdivision to 
12.2 	read:
12.3 		Subd. 44.Medical provider. "Medical provider" means an individual licensed as a 
12.4 	physician, chiropractor, physician assistant, APRN, or, with respect to a mental impairment, 
12.5 	a psychologist.

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

12.7 	Sec. 3. Minnesota Statutes 2024, section 354.07, subdivision 2, is amended to read:
12.8 		Subd. 2.Investigatory powers. In passing upon all applications and claims, the board 
12.9 	may summon, swear, hear, and examine witnesses and, in the case of claims for disability 
12.10 	benefits, may require the claimant to submit to a medical examination by a physician medical 
12.11 	provider of the board's choice, at the expense of the claimant, as a condition precedent to 
12.12 	the passing on the claim, and, in the case of all applications and claims, may conduct 
12.13 	investigations necessary to determine the validity and merit of the same.

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

12.15 	Sec. 4. Minnesota Statutes 2024, section 354.444, subdivision 2, is amended to read:
12.16 		Subd. 2.Eligibility. An eligible person is a person who:
12.17 	(1) is a teacher as defined by section 354.05, subdivision 2, who is at least age 62 59-1/2;
12.18 	(2) enters into a written agreement with the employing unit to return to work; and
12.19 	(3) retires under the provisions of section 354.44 and begins to draw an annuity from 
12.20 	the Teachers Retirement Association.

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

12.22 	Sec. 5. Minnesota Statutes 2024, section 354.444, subdivision 3, is amended to read:
12.23 		Subd. 3.Work agreement. (a) A member who is at least age 59-1/2 may, before the 
12.24 	effective date of retirement, enter into a written agreement to return to work with an 
12.25 	employing unit covered by the provisions of this chapter.
12.26 	(b) Participation, the amount of time worked, and the duration of participation under 
12.27 	this section must be mutually agreed upon by the employing unit and the employee. The 
12.28 	employing unit may require up to a one-year notice of intent to participate in the program 
12.29 	as a condition of participation. The employing unit shall determine the time of year the 
12.30 	employee shall work. Unless otherwise specified in this section, the employing unit may 
13.1 	not require a person to waive any rights under a collective bargaining agreement as a 
13.2 	condition of participation under this section.

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

13.4 	Sec. 6. Minnesota Statutes 2024, section 354.48, subdivision 4, is amended to read:
13.5 		Subd. 4.Determination by executive director. (a) The executive director shall must
13.6 	have the member examined by at least two licensed physicians, licensed chiropractors, or 
13.7 	licensed psychologists a licensed physician and any one or more medical providers.
13.8 	(b) These physicians, chiropractors, APRNs, or psychologists with respect to a mental 
13.9 	impairment, shall The medical providers selected under paragraph (a) must make written 
13.10 	reports to the executive director concerning the member's disability, including expert opinions 
13.11 	as to whether or not the member is permanently and totally disabled within the meaning of 
13.12 	section 354.05, subdivision 14.
13.13 	(c) The executive director shall must also obtain written certification from the last 
13.14 	employer stating whether or not the member was separated from service because of a 
13.15 	disability which that would reasonably prevent further service to the employer and as a 
13.16 	consequence the member is not entitled to compensation from the employer.
13.17 	(d) If, upon the consideration of the reports of the physicians, chiropractors, APRNs, or 
13.18 	psychologists required under paragraph (b) and any other evidence presented by the member 
13.19 	or by others interested therein, the executive director finds that the member is totally and 
13.20 	permanently disabled, the executive director shall must grant the member a disability benefit.
13.21 	(e) An employee who is placed on leave of absence without compensation because of 
13.22 	disability is not barred from receiving a disability benefit.

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

13.24 	Sec. 7. Minnesota Statutes 2024, section 354.48, subdivision 6, is amended to read:
13.25 		Subd. 6.Regular physical examinations. At least once each year during the first five 
13.26 	years following the allowance of a disability benefit to any member, and at least once in 
13.27 	every three-year period thereafter, the executive director may require the disability benefit 
13.28 	recipient to undergo an expert examination by a physician or physicians, by a chiropractor 
13.29 	or chiropractors, by an APRN or APRNs, or by one or more psychologists with respect to 
13.30 	a mental impairment,medical providers engaged by the executive director. If an examination 
13.31 	indicates that the member is no longer permanently and totally disabled or that the member 
13.32 	is engaged or is able to engage in a substantial gainful occupation, the association must 
14.1 	discontinue payments of the disability benefit by the association must be discontinued. The 
14.2 	payments must be discontinued as soon as the member is reinstated to the payroll following 
14.3 	sick leave, but payment may not be made for more than 60 days after the physicians, 
14.4 	chiropractors, APRNs, or psychologists medical provider or medical providers engaged by 
14.5 	the executive director find that the person is no longer permanently and totally disabled.

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

14.7 	Sec. 8. Minnesota Statutes 2024, section 354A.011, subdivision 14b, is amended to read:
14.8 		Subd. 14b.Medical expert. For purposes of section 354A.36, "medical expert" means 
14.9 	a licensed physician, licensed physician assistant, licensed chiropractor, an APRN, or a 
14.10 	licensed psychologist, in each case working within the scope of the individual's professional 
14.11 	licensure.

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

14.13 	Sec. 9. Minnesota Statutes 2024, section 354A.021, subdivision 8, is amended to read:
14.14 		Subd. 8.Annual audit by state auditor. (a) The books and accounts of the teachers 
14.15 	retirement fund association must be examined and audited periodically as considered 
14.16 	necessary by the state auditor annually. A full and detailed report of the examination and 
14.17 	audit must be made and a copy provided to the teachers retirement fund association board
14.18 	of trustees. The cost of any examination and audit must be paid by the teachers retirement 
14.19 	fund association in accordance with section 6.56. For purposes of section 6.56, the teachers 
14.20 	retirement fund association is considered a local governmental entity equivalent to a county, 
14.21 	city, town, or school district.
14.22 	(b) The examination and audit required under paragraph (a) must be conducted by the 
14.23 	state auditor unless the state auditor has notified the association that the state auditor will 
14.24 	not conduct the examination and audit for a particular year. For any year that the state auditor 
14.25 	does not perform the examination and audit, the association must obtain the examination 
14.26 	and audit by a CPA firm meeting the requirements of section 326A.05.

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

14.28 	Sec. 10. Minnesota Statutes 2024, section 354A.12, subdivision 1, is amended to read:
14.29 		Subdivision 1.Employee contributions. (a) The contribution required to be paid by 
14.30 	each member is the percentage of total salary specified below for the applicable program:

15.1		Program
	Percentage of Total Salary
	
15.2		basic program after June 30, 2016, through June 30, 2023
		10
	
15.3		basic program after June 30, 2023, through June 30,  2024
		10.25
	
15.4		basic program after June 30, 2024, through June 30, 2025
		10
	
15.5		basic program after June 30, 2025, through June 30, 2026
		11.25
	
15.6		basic program after June 30, 2026
		11.510.5
	
15.7
15.8		coordinated program after June 30, 2016, through June 30, 
2023
		7.5
	
15.915.10
		coordinated program after June 30, 2023, through June 30,  
2024
		7.75
	
15.11
15.12		coordinated program after June 30, 2024, through June 30, 
2025
		7.5
	
15.13
15.14		coordinated program after June 30, 2025, through June 30, 
2026
		8.75
	
15.15		coordinated program after June 30,  2026
		98
	
15.16 	(b) Contributions must be made by deduction from salary and must be remitted directly 
15.17 	to the association at least once each month.
15.18 	(c) When an employee contribution rate changes for a fiscal year, the new contribution 
15.19 	rate is effective for the entire salary paid by the employer with the first payroll cycle reported.

15.20 	EFFECTIVE DATE. This section is effective July 1, 2026.

15.21 	Sec. 11. Minnesota Statutes 2024, section 354A.12, subdivision 3a, is amended to read:
15.22 		Subd. 3a. Direct state aid to St. Paul Teachers Retirement Fund Association. (a) 
15.23 	The state must pay $2,827,000 to the St. Paul Teachers Retirement Fund Association.
15.24 	(b) In addition to other amounts specified in this subdivision, the state must pay 
15.25 	$7,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.
15.26 	(c) In addition to the other amounts specified in paragraphs (a) and (b) this subdivision, 
15.27 	the state must pay $5,000,000 as state aid to the St. Paul Teachers Retirement Fund 
15.28 	Association.
15.29 	(d) In addition to the other amounts specified in this subdivision, the state must pay 
15.30 	$3,400,000 as state aid to the St. Paul Teachers Retirement Fund Association.
15.31 	(d) (e) The aid under this subdivision is payable October 1 annually. The commissioner 
15.32 	of management and budget must pay the aid specified in this subdivision. The amount 
15.33 	required is appropriated annually from the general fund to the commissioner of management 
15.34 	and budget.

16.1 	EFFECTIVE DATE. This section is effective July 1, 2026.

16.2 	Sec. 12. Minnesota Statutes 2024, section 354A.12, subdivision 3c, is amended to read:
16.3 		Subd. 3c.Termination of supplemental contributions and direct matching and state 
16.4 	aid.  The supplemental contributions payable to the St. Paul Teachers Retirement Fund 
16.5 	Association by Independent School District No. 625 under section 423A.02, subdivision 3, 
16.6 	and the aid under subdivision 3a, paragraphs (a) to (c) (d), continue until the earlier of:
16.7 	(1) the first day of the fiscal year following three consecutive fiscal years in which, for 
16.8 	each fiscal year, the actuarial value of assets of the fund equals or exceeds 100 percent of 
16.9 	the actuarial accrued liability as reported by the actuary retained under section 356.214 in 
16.10 	the annual actuarial valuation prepared under section 356.215; or
16.11 	(2) July 1, 2048.

16.12 	EFFECTIVE DATE. This section is effective July 1, 2026.

16.13 	Sec. 13. Minnesota Statutes 2024, section 356.219, subdivision 1, is amended to read:
16.14 		Subdivision 1.Report required. (a) The Bloomington Fire Department Relief 
16.15 	Association, volunteer firefighters relief associations governed by sections 424A.091 to 
16.16 	424A.095, the St. Paul Teachers Retirement Fund Association, and any Minnesota public 
16.17 	pension plan that is not fully invested through the State Board of Investment, must report 
16.18 	the information specified in subdivision 3 to the state auditor. The state auditor may prescribe 
16.19 	a form or forms for the purposes of the reporting requirements contained in this section.
16.20 	(b) For purposes of this section, a pension plan is fully invested through the State Board 
16.21 	of Investment during a given calendar year if all assets of the pension plan beyond sufficient 
16.22 	cash equivalent investments to cover six months of expected expenses are invested under 
16.23 	section 11A.17.
16.24 	(c) A public pension plan to which subdivision 3, paragraph (b) or (c), applies is not 
16.25 	required to file the report required by this subdivision for a given calendar year if the pension 
16.26 	plan's most recent annual financial audit was conducted by the state auditor. The St. Paul 
16.27 	Teachers Retirement Fund Association is not required to file the report required by this 
16.28 	subdivision for a given calendar year if the St. Paul Teachers Retirement Fund Association:
16.29 	(1) is audited by the state auditor under section 354A.021, subdivision 8, for the most 
16.30 	recent annual audit; or
17.1 	(2) submits to the state auditor an annual financial audit for the most recent annual audit 
17.2 	that was conducted in accordance with auditing standards generally accepted in the United 
17.3 	States of America.
17.4 	(d) This section does not apply to the following plans:
17.5 	(1) the Minnesota unclassified employees retirement program under chapter 352D;
17.6 	(2) the public employees defined contribution plan under chapter 353D;
17.7 	(3) the individual retirement account plans under chapters 354B and 354D;
17.8 	(4) the higher education supplemental retirement plan under chapter 354C;
17.9 	(5) any alternative retirement benefit plan established under section 383B.914;
17.10 	(6) the University of Minnesota faculty retirement plan and supplemental plan; and
17.11 	(7) any other statewide plan required to be invested by the State Board of Investment 
17.12 	under section 11A.23.

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

17.14 	Sec. 14. Laws 2022, chapter 65, article 3, section 1, subdivision 2, as amended by Laws 
17.15 	2024, chapter 102, article 1, section 8, is amended to read:
17.16 		Subd. 2.Temporary suspension of earnings limitation for teachers covered by TRA 
17.17 	and SPTRFA. (a) Notwithstanding Minnesota Statutes, section 354.44, subdivision 5, no 
17.18 	portion of a reemployed teacher's annuity paid under Minnesota Statutes, chapter 354, shall 
17.19 	be deferred regardless of the amount of the salary earned from the teaching service during 
17.20 	the preceding fiscal year. This paragraph applies only to salary earned during fiscal years 
17.21 	2022, 2023, 2024, 2025, 2026, and 2027, 2028, 2029, and 2030 and annuity payments made 
17.22 	during calendar years 2023, 2024, 2025, 2026, 2027, and 2028, 2029, 2030, and 2031.
17.23 	(b) Notwithstanding Minnesota Statutes, section 354A.31, subdivision 3, no portion of 
17.24 	a reemployed teacher's annuity paid under Minnesota Statutes, chapter 354A, shall be 
17.25 	deferred or forfeited regardless of the amount of the salary earned from the teaching service 
17.26 	during the preceding calendar year. This paragraph applies only to salary earned during 
17.27 	calendar years 2022, 2023, 2024, 2025, 2026, and 2027, 2028, 2029, and 2030 and annuity 
17.28 	payments made during calendar years 2023, 2024, 2025, 2026, 2027, and 2028, 2029, 2030, 
17.29 	and 2031.

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

18.1 	Sec. 15. Laws 2022, chapter 65, article 3, section 1, subdivision 3, as amended by Laws 
18.2 	2024, chapter 102, article 1, section 9, is amended to read:
18.3 		Subd. 3.Expiration date. This section expires effective January 1, 2029 2032.

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

18.5 	ARTICLE 4
18.6 	PROBATION AND TELECOMMUNICATOR RETIREMENT SUBPLAN OF THE 
18.7 	MSRS GENERAL STATE EMPLOYEES RETIREMENT PLAN

18.8 	Section 1. Minnesota Statutes 2024, section 352.75, subdivision 2, is amended to read:
18.9 		Subd. 2.New employees. All persons employed by the Metropolitan Council as 
18.10 	employees of the Transit Operating Division are:
18.11 	(1) members of the general state employees retirement plan of the Minnesota State 
18.12 	Retirement System unless specifically covered by the probation and telecommunicator 
18.13 	retirement subplan under section 352.88; and are
18.14 	(2) state employees for purposes of this chapter unless specifically excluded under section 
18.15 	352.01, subdivision 2b.

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

18.17 	Sec. 2. [352.88] PROBATION OFFICERS AND PUBLIC SAFETY 
18.18 	TELECOMMUNICATORS.
18.19 		Subdivision 1.Policy. It is the policy of the legislature that special consideration should 
18.20 	be given to the pension benefits for employees of the state and governmental subdivisions 
18.21 	who devote their time and skills to assisting the community and the courts as probation 
18.22 	officers or serving the public and public safety partners as telecommunicators. Since this 
18.23 	work can be hazardous or high stress, special provisions are made by this section for earlier 
18.24 	full retirement than is provided to members of the general state employees retirement plan 
18.25 	under section 352.01, subdivision 25. The additional cost of this benefit is split between the 
18.26 	employees and employers.
18.27 		Subd. 2.Definitions. (a) For purposes of this section and section 352.881, each of the 
18.28 	following terms has the meaning given unless the language or context clearly indicates that 
18.29 	a different meaning is intended. The definitions in section 352.01 apply to terms used in 
18.30 	this section and section 352.881 unless the term is defined in this section.
19.1 	(b) "Committee" means the probation and telecommunicator subplan membership 
19.2 	committee established pursuant to section 352.881.
19.3 	(c) "Employee organization" has the meaning given in section 179A.03, subdivision 6.
19.4 	(d) "General plan" means the general state employees retirement plan of the Minnesota 
19.5 	State Retirement System.
19.6 	(e) "Member" means an individual to whom this section applies under subdivision 3.
19.7 	(f) "Normal retirement age" means age 60.
19.8 	(g) "Offset amount" means an amount available to offset the cost to purchase credit for 
19.9 	past service upon the election by a member under subdivision 6, if state funding becomes 
19.10 	available.
19.11 	(h) "Past service" means allowable service credited to a member before January 1, 2027, 
19.12 	and covered by the general plan that would have been service covered by this section had 
19.13 	this section been in effect before January 1, 2027.
19.14 	(i) "Probation officer" means a state employee, as defined in section 352.01, employed 
19.15 	by the Department of Corrections:
19.16 	(1) as:
19.17 	(i) a corrections agent;
19.18 	(ii) a corrections agent career;
19.19 	(iii) a corrections agent senior;
19.20 	(iv) a corrections field service district supervisor;
19.21 	(v) a corrections community services regional director;
19.22 	(vi) a corrections field services director;
19.23 	(vii) a corrections field services program director; or
19.24 	(2) whom the commissioner of corrections or the commissioner's delegate certifies, in 
19.25 	the manner prescribed by the executive director, as having substantial responsibility for:
19.26 	(i) providing community supervision services or overseeing the delivery of probation 
19.27 	services; or
19.28 	(ii) supervising employees eligible under item (i).
19.29 	(j) "Public safety telecommunicator" means a state employee, as defined in section 
19.30 	352.01, employed by the Department of Public Safety or Metropolitan Council:
20.1 	(1) as:
20.2 	(i) a radio communications operator;
20.3 	(ii) a radio communications supervisor;
20.4 	(iii) a public safety answering point (PSAP) manager, as defined in Minnesota Rules, 
20.5 	part 7580.0100, subpart 12;
20.6 	(iv) a supervisor, transit control center; or
20.7 	(2) whom the commissioner of public safety, the commissioner's delegate, the Metro 
20.8 	Transit general manager, or the general manager's delegate, as applicable, certifies, in the 
20.9 	manner prescribed by the executive director, as having substantial responsibility for:
20.10 	(i) receiving, processing, transmitting, or dispatching emergency and nonemergency 
20.11 	calls for law enforcement, fire, emergency medical, or other public safety services; or
20.12 	(ii) supervising employees eligible under item (i).
20.13 	(k) "Vesting" or "vested" means obtaining or having obtained a nonforfeitable entitlement 
20.14 	to an annuity or benefit under this section by having earned credit for not less than three 
20.15 	years of allowable service covered by this section or the general plan.
20.16 		Subd. 3.Eligibility. This section applies to probation officers and public safety 
20.17 	telecommunicators, unless the probation officer or public safety telecommunicator is age 
20.18 	60 or older with at least three years of allowable service in the general plan on January 1, 
20.19 	2027.
20.20 		Subd. 4.Retirement annuity. (a) After separation from state service, a member who 
20.21 	has attained at least normal retirement age and is vested is entitled, upon application, to a 
20.22 	normal retirement annuity. The normal retirement annuity is equal to the member's average 
20.23 	salary multiplied by 1.9 percent for each year of allowable service.
20.24 	(b) After separation from state service, a member who has reached the age of 55 and is 
20.25 	vested is entitled, upon application, to an early retirement annuity that is actuarially equivalent 
20.26 	to the normal retirement annuity.
20.27 	(c) Allowable service credited to a member under this section is credited in lieu of service 
20.28 	credited to the general plan.
20.29 		Subd. 5.Additional contributions. (a) A member must make an additional employee 
20.30 	contribution of 2.71 percent of salary.
21.1 	(b) The employer of a member must make an additional employer contribution of two 
21.2 	percent of salary.
21.3 	(c) Contributions under paragraphs (a) and (b) are in addition to the contributions required 
21.4 	by section 352.04, subdivisions 2 and 3.
21.5 	(d) Contributions under paragraphs (a) and (b) must be made in the manner provided in 
21.6 	section 352.04, subdivisions 4 to 6.
21.7 		Subd. 6.Purchase of credit for past service. (a) A member is entitled to elect a onetime 
21.8 	purchase of credit for periods of past service to be added to the member's allowable service 
21.9 	covered by this section and used in calculating the member's retirement annuity. The member 
21.10 	must repay any refunds of employee contributions previously received from the general 
21.11 	plan before purchasing past service credit under this section.
21.12 	(b) A member may request an estimate of the cost of a service credit purchase under 
21.13 	this paragraph.
21.14 	(1) A member may file a request with the executive director for an estimate of the 
21.15 	purchase price for up to three different periods of past service by filing an application on a 
21.16 	form approved by the executive director.
21.17 	(2) The member must file the request for an estimate before filing an election to purchase 
21.18 	past service under paragraph (c).
21.19 	(3) The member must submit with the estimate request payment of the administrative 
21.20 	fee in the amount of $250 to cover the cost of preparing the estimates. If the member proceeds 
21.21 	with the purchase, the executive director must credit the administrative fee toward the 
21.22 	purchase price.
21.23 	(4) The executive director must estimate the purchase price using the assumptions and 
21.24 	applying any offset amount as directed under subdivision 7 for the periods of past service 
21.25 	requested by the member and provide the estimates to the member.
21.26 	(c) To purchase credit for past service, a member must file an application with the 
21.27 	executive director on a form approved by the executive director before the annuity starting 
21.28 	date of the member's retirement annuity or benefit. The application must:
21.29 	(1) include documentation of the member's eligibility to make the purchase, signed 
21.30 	written permission to allow the executive director to request and receive verification of 
21.31 	applicable facts and eligibility requirements from the member's employer, and any other 
21.32 	relevant information that the executive director may require;
22.1 	(2) state the amount of credit for past service the member plans to purchase and be 
22.2 	accompanied by a certification from one or more employers that the past service fulfills the 
22.3 	requirements under subdivision 2, paragraph (h); and
22.4 	(3) if the member did not previously pay the administrative fee under paragraph (b), 
22.5 	include payment of the administrative fee of $250 to cover the cost of calculating the purchase 
22.6 	price. If the member proceeds with the purchase, the executive director must credit the 
22.7 	administrative fee toward the purchase price.
22.8 	(d) The executive director must apply the assumptions and any offset amount under 
22.9 	subdivision 7 to calculate the purchase price and notify the member. If the member elects 
22.10 	to make the purchase of credit for past service, the member must arrange for the transfer of 
22.11 	pretax money from another retirement plan. Payment must be made in one lump sum prior 
22.12 	to the annuity starting date of the member's retirement annuity or benefit.
22.13 	(e) Upon receipt of payment, the executive director must grant the member service credit 
22.14 	for the period of past service for which credit was purchased.
22.15 		Subd. 7.Determination of past service purchase price. (a) The executive director 
22.16 	must calculate the purchase price for the period of past service elected by the member. The 
22.17 	purchase price is an amount equal to the actuarial present value, on the date of payment, of 
22.18 	the amount of the additional retirement annuity obtained by the additional service credit 
22.19 	being purchased minus any offset amount.
22.20 	(b) The executive director must calculate the purchase price by:
22.21 	(1) using the investment return assumption specified in section 356.215, subdivision 8, 
22.22 	and the mortality table in effect for the general plan;
22.23 	(2) assuming continuous future service in the plan until the plan's minimum requirements 
22.24 	for normal retirement or retirement with an annuity unreduced for retirement at an early 
22.25 	age are met with the additional service credit purchased;
22.26 	(3) assuming a full-time equivalent salary or actual salary, whichever is greater, and a 
22.27 	future salary history that includes annual salary increases at the applicable salary increase 
22.28 	rate for the plan; and
22.29 	(4) reducing the amount determined under clauses (1) to (3) by any offset amount.

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

23.1 	Sec. 3. [352.881] SUBPLAN COVERAGE CHANGES.
23.2 		Subdivision 1.Standing review committees. (a) The commissioner of corrections must 
23.3 	appoint a standing review committee to review and determine positions or employees of 
23.4 	the Department of Corrections that should be covered by section 352.88. The commissioner 
23.5 	of public safety must appoint a standing review committee to review and determine positions 
23.6 	or employees of the Department of Public Safety that should be covered by section 352.88. 
23.7 	The Metro Transit general manager must appoint a standing review committee to review 
23.8 	and determine positions or employees of the Metropolitan Council that should be covered 
23.9 	by section 352.88.
23.10 	(b) The Department of Corrections, Department of Public Safety, and Metropolitan 
23.11 	Council must each establish a procedure for the department's or agency's respective 
23.12 	committee to evaluate coverage by section 352.88. Each committee must follow:
23.13 	(1) subdivision 2 when evaluating a change in the title of an employment position listed 
23.14 	in section 352.88, subdivision 2, paragraph (i), clause (1), or (j), clause (1); and
23.15 	(2) subdivision 3 when evaluating requests for starting or ceasing coverage by section 
23.16 	352.88.
23.17 	(c) If a committee has received one or more requests for changes to the title of an 
23.18 	employment position or the commencement or cessation of coverage of an employee by 
23.19 	section 352.88, the committee must convene at least as frequently as once every three 
23.20 	months. If a committee has not received any requests during a three-month period, the 
23.21 	review committee is not required to convene a meeting.
23.22 	(d) Each committee must retain each request to the committee and the related 
23.23 	documentation and final determination for an employee or employment position in the 
23.24 	committee's respective department or agency.
23.25 	(e) Meetings of a standing review committee are not subject to chapter 13D.
23.26 	(f) A standing review committee is not an agency for the purposes of sections 15.0597 
23.27 	and 15.0599.
23.28 		Subd. 2.Procedures for changing employment titles. (a) The applicable standing 
23.29 	review committee must review a change in the title of an employment position listed in 
23.30 	section 352.88, subdivision 2, paragraph (i), clause (1), or (j), clause (1), and determine 
23.31 	whether the responsibilities of the employment position satisfy the requirements under 
23.32 	section 352.88, subdivision 2, paragraph (i) or (j).
24.1 	(b) If the committee determines that the responsibilities of the employment position 
24.2 	have not changed, or the responsibilities of the employment position have changed but the 
24.3 	changes do not affect the eligibility of the employment position for coverage by section 
24.4 	352.88, the department or agency affected by the determination must:
24.5 	(1) submit the title change to the executive director of the Legislative Commission on 
24.6 	Pensions and Retirement before the start of the next legislative session and request legislation 
24.7 	to replace the title in section 352.88, subdivision 2, paragraph (i) or (j), as applicable, with 
24.8 	the new title; and
24.9 	(2) notify each employee in the employment position no later than 30 days after the 
24.10 	effective date of the title change that the title change will not affect the continued coverage 
24.11 	of the employee by section 352.88 and that the department or agency, as applicable, has 
24.12 	submitted a request to the legislature to change the title in section 352.88, subdivision 2, 
24.13 	paragraph (i) or (j), as applicable.
24.14 	(c) If the committee determines that the responsibilities of the employment position have 
24.15 	changed and the changes result in the employment position no longer being qualified for 
24.16 	coverage by section 352.88, the department or agency affected by the determination must 
24.17 	communicate the committee's determination to all affected employees no later than 10 days 
24.18 	after the date of the meeting at which the determination was made and inform the employees 
24.19 	of the right to appeal the determination under subdivision 4.
24.20 	(d) The department or agency affected by the determination to remove a title must contact 
24.21 	the executive director of the Legislative Commission on Pensions and Retirement before 
24.22 	the start of the next legislative session and request legislation to remove the title in section 
24.23 	352.88, subdivision 2, paragraph (i) or (j), as applicable, if:
24.24 	(1) an employee appeals the determination and the determination is upheld; or
24.25 	(2) an employee does not appeal the determination.
24.26 	(e) The committee must include an effective date in any determination to change or 
24.27 	remove an employment position from the lists in section 352.88, subdivision 2, paragraph 
24.28 	(i) or (j). The effective date may be retroactive for a determination to change an employment 
24.29 	position.
24.30 		Subd. 3.Procedures for starting or ceasing coverage. (a) The applicable standing 
24.31 	review committee must consider requests to provide coverage by section 352.88 to an 
24.32 	employee who satisfies the requirements of section 352.88, subdivision 2, paragraph (i), 
25.1 	clause (2), or (j), clause (2), or to cease coverage of an employee who does not satisfy the 
25.2 	requirements of section 352.88, subdivision 2, paragraph (i), clause (2), or (j), clause (2).
25.3 	(b) An employee, an employee's employee organization, or an employee's manager may 
25.4 	submit a request to the committee to provide coverage to an employee who satisfies the 
25.5 	requirements of section 352.88, subdivision 2, paragraph (i), clause (2), or (j), clause (2). 
25.6 	The request must include:
25.7 	(1) a signed and dated position description for the employee's position; and
25.8 	(2) a statement signed by the employee that describes the extent to which the employee's 
25.9 	job duties meet the requirements of section 352.88, subdivision 2, paragraph (i), clause (2), 
25.10 	or (j), clause (2).
25.11 	(c) An employer may submit a request to the committee to cease coverage of an employee 
25.12 	who no longer satisfies the requirements of section 352.88, subdivision 2, paragraph (i), 
25.13 	clause (2), or (j), clause (2). The request must include:
25.14 	(1) a signed and dated position description for the employee's position; and
25.15 	(2) a statement signed by the employee's employer describing how the employee no 
25.16 	longer meets the requirements of section 352.88, subdivision 2, paragraph (i), clause (2), 
25.17 	or (j), clause (2).
25.18 	(d) After making a determination of coverage or no coverage for an employee, the 
25.19 	department or agency affected by the determination must communicate the committee's 
25.20 	determination to the affected employee no later than ten days after the date of the meeting 
25.21 	at which the determination was made and inform the employee of the right to appeal the 
25.22 	determination under subdivision 4.
25.23 	(e) If after making a determination of coverage, the committee determines that an 
25.24 	employment position should be added to the list of employment positions in section 352.88, 
25.25 	subdivision 2, paragraph (i) or (j), as applicable, the department or agency affected by the 
25.26 	determination must submit the employment position addition to the executive director of 
25.27 	the Legislative Commission on Pensions and Retirement before the start of the next legislative 
25.28 	session and request legislation to make the change.
25.29 	(f) The committee must include an effective date in any determination that an employee 
25.30 	must begin to receive coverage under section 352.88 or that coverage must cease. The 
25.31 	effective date may be retroactive to the date on which the coverage requirements were first 
25.32 	satisfied or were no longer met.
26.1 		Subd. 4.Right to appeal. (a) No later than 30 days after receiving a determination under 
26.2 	subdivision 2 or 3, the affected employee may appeal the determination from a standing 
26.3 	review committee by filing an appeal with the human resources director or the chief human 
26.4 	resources director of the department or agency, as applicable, in which the employee is 
26.5 	employed. The appeal must include:
26.6 	(1) the reasons for the appeal, including the reasons the determination should be reversed; 
26.7 	and
26.8 	(2) new or additional information, if any, not previously submitted or considered by the 
26.9 	committee, including a new or revised position description.
26.10 	(b) The appeal must be decided by the commissioner of corrections if the employee is 
26.11 	an employee of the Department of Corrections, by the commissioner of public safety if the 
26.12 	employee is an employee of the Department of Public Safety, or by the Metro Transit general 
26.13 	manager if the employee is an employee of the Metropolitan Council. The decision of the 
26.14 	commissioners or general manager, as applicable, is final.
26.15 	(c) A determination not timely appealed under paragraph (a) is not entitled to further 
26.16 	administrative or judicial review. A determination under subdivision 2 or 3 or an appeal 
26.17 	decided under paragraph (b) may not be appealed under section 356.96.

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

26.19 	Sec. 4. Minnesota Statutes 2024, section 352.951, is amended to read:
26.20 	352.951 APPLICABILITY OF GENERAL LAW.
26.21 	Except as otherwise provided, this chapter applies to covered correctional employees, 
26.22 	military affairs personnel covered under section 352.85, Transportation Department pilots 
26.23 	covered under section 352.86, and state fire marshal employees covered under section 
26.24 	352.87, and probation officers and public safety telecommunicators covered under section 
26.25 	352.88.

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

26.27 	Sec. 5. Minnesota Statutes 2024, section 356.315, subdivision 9, is amended to read:
26.28 		Subd. 9.Future benefit accrual rate increases. After January 2, 1998, benefit accrual 
26.29 	rate increases under section 352.115, subdivision 3; 352.87, subdivision 3; 352.88, 
26.30 	subdivision 4; 352.93, subdivision 3; 352.95, subdivision 1; 352B.08, subdivision 2; 352B.10, 
26.31 	subdivision 1; 353.29, subdivision 3; 353.651, subdivision 3; 353.656, subdivision 1, 1a, 
27.1 	or 3a; 353E.04, subdivision 3; 353E.06, subdivision 1; 354.44, subdivision 6; 354A.31, 
27.2 	subdivision 4 or 4a; 356.30, subdivision 1; 490.121, subdivision 22; or 490.124, subdivision 
27.3 	1, must apply only to allowable service or formula service rendered after the effective date 
27.4 	of the benefit accrual rate increase.

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

27.6 	Sec. 6. APPROPRIATIONS.
 27.7 	(a) $272,000 in fiscal year 2027 is appropriated from the general fund to the commissioner 
27.8 	of corrections for the purposes of this act. The base for this appropriation is $545,000 in 
27.9 	fiscal year 2028 and $545,000 in fiscal year 2029.
27.10 	(b) $14,000 in fiscal year 2027 is appropriated from the general fund to the commissioner 
27.11 	of public safety for the purposes of this act. The base for this appropriation is $29,000 in 
27.12 	fiscal year 2028 and $29,000 in fiscal year 2029.
27.13 	(c) $40,000 in fiscal year 2027 is appropriated from the general fund to the Metropolitan 
27.14 	Council for the purposes of this act. The base for this appropriation is $80,000 in fiscal year 
27.15 	2028 and $80,000 in fiscal year 2029.
27.16 	(d) $7,000 in fiscal year 2027 is appropriated from the trunk highway fund to the 
27.17 	commissioner of public safety for the purposes of this act. The base for this appropriation 
27.18 	is $14,000 in fiscal year 2028 and $14,000 in fiscal year 2029.

27.19 	ARTICLE 5
27.20 	LOCAL GOVERNMENTAL PROBATION AND TELECOMMUNICATOR 
27.21 	RETIREMENT PLAN

27.22 	Section 1. Minnesota Statutes 2025 Supplement, section 353.01, subdivision 2a, is amended 
27.23 	to read:
27.24 		Subd. 2a.Included employees; mandatory membership. (a) Any public employee 
27.25 	whose salary from one governmental subdivision is expected to exceed $425 in any month 
27.26 	and who is not specifically excluded under subdivision 2b or has not been provided an 
27.27 	option to participate under subdivision 2d, whether individually or by action of the 
27.28 	governmental subdivision, must participate beginning on the employee's first day of 
27.29 	employment as a member of the association with retirement coverage by the general 
27.30 	employees retirement plan under this chapter, the public employees police and fire plan 
27.31 	under this chapter, or the local government correctional employees retirement plan under 
27.32 	chapter 353E, or the local government probation and telecommunicator retirement plan 
28.1 	under chapter 353H, whichever applies. For any employee whose salary is not expected to 
28.2 	exceed $425 in any month, membership commences on the first day that the employee's 
28.3 	salary exceeds $425 and the other eligibility criteria are met. Public employees include but 
28.4 	are not limited to:
28.5 	(1) persons whose salary meets the threshold in this paragraph from employment in one 
28.6 	or more positions within one governmental subdivision;
28.7 	(2) elected county sheriffs;
28.8 	(3) persons who are appointed, employed, or contracted to perform governmental 
28.9 	functions that by law or local ordinance are required of a public officer, including, but not 
28.10 	limited to:
28.11 	(i) town and city clerk or treasurer;
28.12 	(ii) county auditor, treasurer, or recorder;
28.13 	(iii) city manager as defined in section 353.028 who does not exercise the option provided 
28.14 	under subdivision 2d; or
28.15 	(iv) emergency management director, as provided under section 12.25;
28.16 	(4) physicians under section 353D.01, subdivision 2, who do not elect public employees 
28.17 	defined contribution plan coverage under section 353D.02, subdivision 2;
28.18 	(5) full-time employees of the Dakota County Agricultural Society;
28.19 	(6) employees of the Red Wing Port Authority who were first employed by the Red 
28.20 	Wing Port Authority before May 1, 2011, and who are not excluded employees under 
28.21 	subdivision 2b;
28.22 	(7) employees of the Seaway Port Authority of Duluth who are not excluded employees 
28.23 	under subdivision 2b;
28.24 	(8) employees of the Stevens County Housing and Redevelopment Authority who were 
28.25 	first employed by the Stevens County Housing and Redevelopment Authority before May 
28.26 	1, 2014, and who are not excluded employees under subdivision 2b;
28.27 	(9) employees of the Minnesota River Area Agency on Aging who were first employed 
28.28 	by a Regional Development Commission before January 1, 2016, and who are not excluded 
28.29 	employees under subdivision 2b; and
28.30 	(10) employees of the Public Employees Retirement Association.
29.1 	(b) A public employee or elected official who was a member of the association on June 
29.2 	30, 2002, based on employment that qualified for membership coverage by the public 
29.3 	employees retirement plan or the public employees police and fire plan under this chapter, 
29.4 	or the local government correctional employees retirement plan under chapter 353E as of 
29.5 	June 30, 2002, retains that membership for the duration of the person's employment in that 
29.6 	position or incumbency in elected office. Except as provided in subdivision 28, the person 
29.7 	shall participate as a member until the employee or elected official terminates public 
29.8 	employment under subdivision 11a or terminates membership under subdivision 11b.
29.9 	(c) If the salary of an included public employee is less than $425 in any subsequent 
29.10 	month, the member retains membership eligibility.
29.11 	(d) For the purpose of participation in the general employees retirement plan, public 
29.12 	employees include employees who were members of the former Minneapolis Employees 
29.13 	Retirement Fund on June 29, 2010.

29.14 	Sec. 2. Minnesota Statutes 2025 Supplement, section 353.01, subdivision 2b, is amended 
29.15 	to read:
29.16 		Subd. 2b.Excluded employees. (a) The following public employees are not eligible to 
29.17 	participate as members of the association with retirement coverage by the general employees 
29.18 	retirement plan, the local government correctional employees retirement plan under chapter 
29.19 	353E, or the public employees police and fire plan, or the local government probation and 
29.20 	telecommunicator retirement plan under chapter 353H:
29.21 	(1) persons whose salary from one governmental subdivision never exceeds or is never 
29.22 	expected to exceed $425 in a month;
29.23 	(2) public officers who are elected to a governing body, city mayors, or persons who 
29.24 	are appointed to fill a vacancy in an elected office of a governing body, whose term of office 
29.25 	commences on or after July 1, 2002, for the service to be rendered in that elected position;
29.26 	(3) election judges and persons employed solely to administer elections;
29.27 	(4) patient and inmate personnel who perform services for a governmental subdivision;
29.28 	(5) except as otherwise specified in subdivision 12a, employees who are employed solely 
29.29 	in a temporary position as defined under subdivision 12a, and employees who resign from 
29.30 	a nontemporary position and accept a temporary position within 30 days of that resignation 
29.31 	in the same governmental subdivision;
30.1 	(6) employees who are employed by reason of work emergency caused by fire, flood, 
30.2 	storm, or similar disaster, but if the person becomes a probationary or provisional employee 
30.3 	within the same pay period, other than on a temporary basis, the person is a "public 
30.4 	employee" retroactively to the beginning of the pay period;
30.5 	(7) employees who by virtue of their employment in one governmental subdivision are 
30.6 	required by law to be a member of and to contribute to any of the plans or funds administered 
30.7 	by the Minnesota State Retirement System, the Teachers Retirement Association, or the St. 
30.8 	Paul Teachers Retirement Fund Association, but this exclusion must not be construed to 
30.9 	prevent a person from being a member of and contributing to the Public Employees 
30.10 	Retirement Association and also belonging to and contributing to another public pension 
30.11 	plan or fund for other service occurring during the same period of time, and a person who 
30.12 	meets the definition of "public employee" in subdivision 2 by virtue of other service occurring 
30.13 	during the same period of time becomes a member of the association unless contributions 
30.14 	are made to another public retirement plan on the salary based on the other service or to the 
30.15 	Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
30.16 	(8) persons who are members of a religious order and are excluded from coverage under 
30.17 	the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance 
30.18 	of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if 
30.19 	no irrevocable election of coverage has been made under section 3121(r) of the Internal 
30.20 	Revenue Code of 1954, as amended;
30.21 	(9) persons who are:
30.22 	(i) employed by a governmental subdivision who have not reached the age of 23 and 
30.23 	who are enrolled on a full-time basis to attend or are attending classes on a full-time basis 
30.24 	at an accredited school, college, or university in an undergraduate, graduate, or 
30.25 	professional-technical program, or at a public or charter high school;
30.26 	(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist 
30.27 	interns and are serving in a degree or residency program in a public hospital or in a public 
30.28 	clinic; or
30.29 	(iii) students who are serving for a period not to exceed five years in an internship or a 
30.30 	residency program that is sponsored by a governmental subdivision, including an accredited 
30.31 	educational institution;
30.32 	(10) persons who hold a part-time adult supplementary technical college license who 
30.33 	render part-time teaching service in a technical college;
31.1 	(11) for the first three years of employment, foreign citizens who are employed by a 
31.2 	governmental subdivision, except that the following foreign citizens must be considered 
31.3 	included employees under subdivision 2a:
31.4 	(i) H-1B, H-1B1, and E-3 status holders;
31.5 	(ii) employees of Hennepin County or Hennepin Healthcare System, Inc.;
31.6 	(iii) employees legally authorized to work in the United States for three years or more; 
31.7 	and
31.8 	(iv) employees otherwise required to participate under federal law;
31.9 	(12) public hospital employees who elected not to participate as members of the 
31.10 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
31.11 	1, 1988;
31.12 	(13) volunteer ambulance service personnel, as defined in subdivision 35, but persons 
31.13 	who serve as volunteer ambulance service personnel may still qualify as public employees 
31.14 	under subdivision 2 and may be members of the Public Employees Retirement Association 
31.15 	and participants in the general employees retirement plan or the public employees police 
31.16 	and fire plan, whichever applies, on the basis of compensation received from public 
31.17 	employment service other than service as volunteer ambulance service personnel;
31.18 	(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 
31.19 	36, engaging in activities undertaken as part of volunteer firefighter duties, but a person 
31.20 	who is a volunteer firefighter may still qualify as a public employee under subdivision 2 
31.21 	and may be a member of the Public Employees Retirement Association and a participant 
31.22 	in the general employees retirement plan or the public employees police and fire plan, 
31.23 	whichever applies, on the basis of compensation received from public employment activities 
31.24 	other than those as a volunteer firefighter;
31.25 	(15) employees in the building and construction trades, as follows:
31.26 	(i) pipefitters and associated trades personnel employed by Independent School District 
31.27 	No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters 
31.28 	local 455 pension plan who were either first employed after May 1, 1997, or, if first employed 
31.29 	before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section 
31.30 	12;
31.31 	(ii) electrical workers, plumbers, carpenters, and associated trades personnel employed 
31.32 	by Independent School District No. 625, St. Paul, or the city of St. Paul, with coverage 
31.33 	under a collective bargaining agreement by the electrical workers local 110 pension plan, 
32.1 	the plumbers local 34 pension plan, or the carpenters local 322 pension plan who were either 
32.2 	first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be 
32.3 	excluded under Laws 2000, chapter 461, article 7, section 5;
32.4 	(iii) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, 
32.5 	allied tradesworkers, and plasterers employed by the city of St. Paul or Independent School 
32.6 	District No. 625, St. Paul, with coverage under a collective bargaining agreement by the 
32.7 	bricklayers and allied craftworkers local 1 pension plan, the cement masons local 633 
32.8 	pension plan, the glaziers and glassworkers local 1324 pension plan, the painters and allied 
32.9 	trades local 61 pension plan, or the plasterers local 265 pension plan who were either first 
32.10 	employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded 
32.11 	under Laws 2001, First Special Session chapter 10, article 10, section 6;
32.12 	(iv) plumbers employed by the Metropolitan Airports Commission, with coverage under 
32.13 	a collective bargaining agreement by the plumbers local 34 pension plan, who were either 
32.14 	first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be 
32.15 	excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;
32.16 	(v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation 
32.17 	Board, with coverage under a collective bargaining agreement by the electrical workers 
32.18 	local 292 pension plan or the pipefitters local 539 pension plan, who were first employed 
32.19 	before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11, 
32.20 	section 5;
32.21 	(vi) laborers and associated trades personnel employed by the city of St. Paul or 
32.22 	Independent School District No. 625, St. Paul, who are designated as temporary employees 
32.23 	with coverage under a collective bargaining agreement by a multiemployer plan as defined 
32.24 	in section 356.27, subdivision 1, who were either first employed on or after June 1, 2018, 
32.25 	or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter 
32.26 	211, article 16, section 13; and
32.27 	(vii) employees who are trades employees as defined in section 356.27, subdivision 1, 
32.28 	first hired on or after July 1, 2020, by the city of St. Paul or Independent School District 
32.29 	No. 625, St. Paul, except for any trades employee for whom contributions are made under 
32.30 	section 356.24, subdivision 1, clause (8), (9), or (10), by either employer to a multiemployer 
32.31 	plan as defined in section 356.27, subdivision 1;
32.32 	(16) employees who are hired after June 30, 2002, solely to fill seasonal positions under 
32.33 	subdivision 12b which are limited in duration by the employer to a period of six months or 
32.34 	less in each year of employment with the governmental subdivision;
33.1 	(17) persons who are provided supported employment or work-study positions by a 
33.2 	governmental subdivision and who participate in an employment or industries program 
33.3 	maintained for the benefit of these persons where the governmental subdivision limits the 
33.4 	position's duration to up to five years, including persons participating in a federal or state 
33.5 	subsidized on-the-job training, work experience, senior citizen, youth, or unemployment 
33.6 	relief program where the training or work experience is not provided as a part of, or for, 
33.7 	future permanent public employment;
33.8 	(18) independent contractors and the employees of independent contractors;
33.9 	(19) reemployed annuitants of the association during the course of that reemployment;
33.10 	(20) persons appointed to serve on a board or commission of a governmental subdivision 
33.11 	or an instrumentality thereof;
33.12 	(21) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan 
33.13 	Transit Commission who are members of the International Brotherhood of Teamsters Local 
33.14 	638 and who are, by virtue of that employment, members of the International Brotherhood 
33.15 	of Teamsters Central States pension plan; and
33.16 	(22) persons employed by the Duluth Transit Authority or any subdivision thereof who 
33.17 	are members of the Teamsters General Local Union 346 and who are, by virtue of that 
33.18 	employment, members of the Central States Southeast and Southwest Areas Pension Fund.
33.19 	(b) Any person performing the duties of a public officer in a position defined in 
33.20 	subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an 
33.21 	employee of an independent contractor.

33.22 	Sec. 3. Minnesota Statutes 2024, section 353.01, subdivision 16, is amended to read:
33.23 		Subd. 16.Allowable service; limits and computation. (a) "Allowable service" means:
33.24 	(1) service during years of actual membership in the course of which employee deductions 
33.25 	were withheld from salary and contributions were made at the applicable rates under section 
33.26 	353.27, 353.65, or353E.03, or 353H.04;
33.27 	(2) periods of service covered by payments in lieu of salary deductions under sections 
33.28 	353.27, subdivisions 12 and 12a, and 353.35;
33.29 	(3) service in years during which the public employee was not a member but for which 
33.30 	the member later elected, while a member, to obtain credit by making payments to the fund 
33.31 	as permitted by any law then in effect;
34.1 	(4) a period of authorized leave of absence during which the employee receives pay as 
34.2 	specified in subdivision 10, paragraph (a), clause (4) or (5), from which deductions for 
34.3 	employee contributions are made, deposited, and credited to the fund;
34.4 	(5) a period of authorized leave of absence without pay, or with pay that is not included 
34.5 	in the definition of salary under subdivision 10, paragraph (a), clause (4) or (5), for which 
34.6 	salary deductions are not authorized, and for which a member obtained service credit for 
34.7 	up to 12 months of the authorized leave period by payment under section 353.0162, to the 
34.8 	fund made in place of salary deductions;
34.9 	(6) an authorized temporary or seasonal layoff under subdivision 12, limited to three 
34.10 	months allowable service per authorized temporary or seasonal layoff in one calendar year. 
34.11 	An employee who has received the maximum service credit allowed for an authorized 
34.12 	temporary or seasonal layoff must return to public service and must obtain a minimum of 
34.13 	three months of allowable service subsequent to the layoff in order to receive allowable 
34.14 	service for a subsequent authorized temporary or seasonal layoff;
34.15 	(7) a period of uniformed services leave purchased under section 353.014;
34.16 	(8) a period of military service purchased under section 353.0141; or
34.17 	(9) a period of reduced salary purchased under section 353.0162.
34.18 	(b) No member may receive more than 12 months of allowable service credit in a year 
34.19 	either for vesting purposes or for benefit calculation purposes.
34.20 	(c) For an active member who was an active member of the former Minneapolis 
34.21 	Firefighters Relief Association on December 29, 2011, "allowable service" is the period of 
34.22 	service credited by the Minneapolis Firefighters Relief Association as reflected in the 
34.23 	transferred records of the association up to December 30, 2011, and the period of service 
34.24 	credited under paragraph (a), clause (1), after December 30, 2011. For an active member 
34.25 	who was an active member of the former Minneapolis Police Relief Association on December 
34.26 	29, 2011, "allowable service" is the period of service credited by the Minneapolis Police 
34.27 	Relief Association as reflected in the transferred records of the association up to December 
34.28 	30, 2011, and the period of service credited under paragraph (a), clause (1), after December 
34.29 	30, 2011.

34.30 	Sec. 4. Minnesota Statutes 2024, section 353.01, subdivision 37, is amended to read:
34.31 		Subd. 37.Normal retirement age. (a) "Normal retirement age" means age 65 for a 
34.32 	person who first became a public employee or a member of a pension fund listed in section 
34.33 	356.30, subdivision 3, clause (6), before July 1, 1989. For a person who first becomes a 
35.1 	public employee after June 30, 1989, "normal retirement age" means the higher of age 65 
35.2 	or "retirement age," as defined in United States Code, title 42, section 416(l), as amended, 
35.3 	but not to exceed age 66.
35.4 	(b) "Normal retirement age" means age 55 for a person who is a member of a pension 
35.5 	fund listed in section 356.30, subdivision 3, clauses (7) and (8).
35.6 	(c) "Normal retirement age" means the age stated in section 353H.01, subdivision 6, for 
35.7 	a member of the local government probation and telecommunicator retirement plan.

35.8 	Sec. 5. Minnesota Statutes 2024, section 353.0141, subdivision 1, is amended to read:
35.9 		Subdivision 1.Service credit purchase authorized. (a) Unless prohibited under 
35.10 	paragraph (b), a member is eligible to purchase allowable service credit, not to exceed five 
35.11 	cumulative years of allowable service credit, for one or more periods of service in the 
35.12 	uniformed services, as defined in United States Code, title 38, section 4303(13), if:
35.13 	(1) the member has at least three years of allowable service credit with the general 
35.14 	employees retirement plan, the local government correctional employees retirement plan 
35.15 	under chapter 353E, or the public employees police and fire retirement plan, or the local 
35.16 	government probation and telecommunicator retirement plan under chapter 353H;
35.17 	(2) the member's current period of employment is at least six months; and
35.18 	(3) one of the following applies:
35.19 	(i) the member's service in the uniformed services occurred before becoming a public 
35.20 	employee as defined in section 353.01, subdivision 2; or
35.21 	(ii) the member failed to obtain service credit for a uniformed services leave of absence 
35.22 	under section 353.01, subdivision 16, paragraph (a), clause (8).
35.23 	(b) A service credit purchase is prohibited if:
35.24 	(1) the member separated from service in the uniformed services with a dishonorable 
35.25 	or bad conduct discharge or under other than honorable conditions; or
35.26 	(2) the member has purchased or otherwise received service credit from any Minnesota 
35.27 	public employee pension plan for the same period of service in the uniformed services.
35.28 	(c) When purchasing a period of service, if the period of service in the uniformed services 
35.29 	is one year or less, then the member must purchase the full period of service. If the period 
35.30 	of service in the uniformed services is longer than one year, the member may purchase the 
36.1 	full period, not to exceed five cumulative years, or may purchase a portion of the period of 
36.2 	service. If a member wishes to purchase a portion of the period of service, the portion must:
36.3 	(1) not be less than one year; and
36.4 	(2) be in increments of six months of service.

36.5 	Sec. 6. Minnesota Statutes 2024, section 353.031, subdivision 1, is amended to read:
36.6 		Subdivision 1.Application. (a) This section applies to all disability determinations for 
36.7 	the public employees general fund, the public employees police and fire fund, and the local 
36.8 	government correctional service retirement plan, and the local government probation and 
36.9 	telecommunicator retirement plan, and any other disability determination subject to approval 
36.10 	by the board, except as otherwise specified in section 353.032, 353.33, 353.656, or 353E.05. 
36.11 	These requirements and the requirements of section 353.03, subdivision 3, are in addition 
36.12 	to the specific requirements of each plan and govern in the event there is any conflict between 
36.13 	these sections and the procedures specific to any of those plans under section 353.33, 
36.14 	353.656, or353E.06, or 353H.06.
36.15 	(b) Notwithstanding any law to the contrary, an employee, as defined in section 353.032, 
36.16 	subdivision 1, clause (2), who applies for a duty disability benefit based on a psychological 
36.17 	condition, as defined in section 353.032, subdivision 1, clause (7), is not eligible for duty 
36.18 	disability benefits under this chapter until the employee has satisfied the additional procedure, 
36.19 	including all completion of treatment requirements under section 353.032.

36.20 	Sec. 7. Minnesota Statutes 2024, section 353.031, subdivision 2, is amended to read:
36.21 		Subd. 2.Plan document policy statement. Disability determinations for the public 
36.22 	employees general fund and the local government probation and telecommunicator retirement 
36.23 	plan must be made subject to section 353.01, subdivision 19; and for the police and fire 
36.24 	plan and the local government correctional service retirement plan must be made consistent 
36.25 	with the legislative policy and intent set forth in section 353.63.

36.26 	Sec. 8. Minnesota Statutes 2024, section 353.031, subdivision 3, is amended to read:
36.27 		Subd. 3.Procedure to determine eligibility; generally. (a) Every claim for a disability 
36.28 	benefit must be initiated in writing on an application form and in the manner prescribed by 
36.29 	the executive director and filed with the executive director. To be valid, an application for 
36.30 	disability benefits must be made within 18 months following termination of public service 
36.31 	as defined under section 353.01, subdivision 11a, and include the required application form 
36.32 	and the medical reports required by paragraph (c).
37.1 	(b) All medical reports must support a finding that the disability arose before the employee 
37.2 	was placed on any paid or unpaid leave of absence or terminated public service, as defined 
37.3 	under section 353.01, subdivision 11a.
37.4 	(c) An applicant for disability shall provide a detailed report signed by a licensed medical 
37.5 	doctor and at least one additional report signed by a medical doctor, psychiatrist, psychologist, 
37.6 	APRN, or chiropractor. The applicant must authorize the release of all medical and health 
37.7 	care evidence, including all medical records and relevant information from any source, to 
37.8 	support the application for initial, or the continuing payment of, disability benefits.
37.9 	(d) All reports must contain an opinion regarding the applicant's prognosis, the duration 
37.10 	of the disability, and the expectations for improvement. Any report that does not contain 
37.11 	and support a finding that the disability will last for at least one year may not be relied upon 
37.12 	to support eligibility for benefits.
37.13 	(e) Where the medical evidence supports the expectation that at some point in time the 
37.14 	applicant will no longer be disabled, any decision granting disability may provide for a 
37.15 	termination date upon which disability can be expected to no longer exist. In the event a 
37.16 	termination date is made part of the decision granting benefits, prior to the actual termination 
37.17 	of benefits, the applicant shall have the opportunity to show that the disabling condition for 
37.18 	which benefits were initially granted continues. In the event the benefits terminate in 
37.19 	accordance with the original decision, the applicant may petition for review under section 
37.20 	356.96 or may reapply for disability in accordance with these procedures and section 353.33, 
37.21 	353.656, or 353E.06, as applicable.
37.22 	(f) Upon receipt of a valid application, the executive director must notify the employer. 
37.23 	No later than 30 days after receiving the notification, the employer must provide a report 
37.24 	to the executive director indicating that there is no available work that the applicant can 
37.25 	perform in the applicant's disabled condition and that all reasonable accommodations have 
37.26 	been considered. Upon request of the executive director, an employer shall provide evidence 
37.27 	of the steps the employer has taken to attempt to provide reasonable accommodations and 
37.28 	continued employment to the applicant. The employer shall also provide a certification of 
37.29 	the applicant's past public service; the dates of any paid sick leave, vacation, or any other 
37.30 	employer-paid salary continuation plan beyond the last working day; and whether or not 
37.31 	any sick or annual leave has been allowed.
37.32 	(g) An applicant who is placed on leave of absence without compensation because of a 
37.33 	disability is not barred from receiving a disability benefit.
38.1 	(h) An applicant for disability benefits may file a retirement annuity application under 
38.2 	section 353.29, subdivision 4, simultaneously with an application for disability benefits. If 
38.3 	the application for disability benefits is approved, the retirement annuity application is 
38.4 	canceled. If disability benefits are denied, the retirement annuity application must be 
38.5 	processed upon the request of the applicant. No member of the general employees retirement 
38.6 	plan, the police and fire plan, or the local government correctional service retirement plan, 
38.7 	or the local government probation and telecommunicator retirement plan may receive a 
38.8 	disability benefit and a retirement annuity simultaneously from the same plan.

38.9 	Sec. 9. Minnesota Statutes 2024, section 353.15, subdivision 1, is amended to read:
38.10 		Subdivision 1.Exemption. The provisions of section 356.401 apply to the general 
38.11 	employees retirement plan, to the public employees police and fire retirement plan, and to
38.12 	the local government correctional service retirement plan, and the local government probation 
38.13 	and telecommunicator retirement plan.

38.14 	Sec. 10. Minnesota Statutes 2024, section 353.27, subdivision 4, is amended to read:
38.15 		Subd. 4.Employer reporting requirements; contributions; member status. (a) A 
38.16 	representative authorized by the head of each department must deduct employee contributions 
38.17 	from the salary of each public employee who qualifies for membership in the general 
38.18 	employees retirement plan or the public employees police and fire retirement plan under 
38.19 	this chapter, the public employees defined contribution plan under chapter 353D, or the 
38.20 	local government correctional service retirement plan under chapter 353E, or the local 
38.21 	government probation and telecommunicator retirement plan under chapter 353H at the rate 
38.22 	under section 353.27, 353.65, 353D.03, or353E.03, or 353H.04, whichever is applicable, 
38.23 	that is in effect on the date the salary is paid. The employer representative must also remit 
38.24 	payment in a manner prescribed by the executive director for the aggregate amount of the 
38.25 	employee contributions and the required employer contributions to be received by the 
38.26 	association within 14 calendar days after each pay date. If the payment is less than the 
38.27 	amount required, the employer must pay the shortage amount to the association and collect 
38.28 	reimbursement of any employee contribution shortage paid on behalf of a member through 
38.29 	subsequent payroll withholdings from the wages of the employee. Payment of shortages in 
38.30 	employee contributions and associated employer contributions, if applicable, must include 
38.31 	interest at the rate specified in section 353.28, subdivision 5, if not received within 30 days 
38.32 	following the date the amount was initially due under this section.
39.1 	(b) The head of each department or the person's designee shall submit for each pay period 
39.2 	to the association a salary deduction report in the format prescribed by the executive director. 
39.3 	The report must be received by the association within 14 calendar days after each pay date 
39.4 	or the employer may be assessed a fine of $5 per calendar day until the association receives 
39.5 	the required data. Data required as part of salary deduction reporting must include, but are 
39.6 	not limited to:
39.7 	(1) the legal names and Social Security numbers of employees who are members;
39.8 	(2) the amount of each employee's salary deduction;
39.9 	(3) the amount of salary defined in section 353.01, subdivision 10, earned in the pay 
39.10 	period from which each deduction was made, including a breakdown of the portion of the 
39.11 	salary that represents overtime pay that the employee was paid for additional hours worked 
39.12 	beyond the regularly scheduled hours, pay for unused compensatory time, and the salary 
39.13 	amount earned by a reemployed annuitant under section 353.37, subdivision 1, or 353.371, 
39.14 	subdivision 1, or by a disabled member under section 353.33, subdivision 7 or 7a;
39.15 	(4) the beginning and ending dates of the payroll period covered and the date of actual 
39.16 	payment; and
39.17 	(5) adjustments or corrections covering past pay periods as authorized by the executive 
39.18 	director.
39.19 	(c) Employers must furnish the data required for enrollment for each new or reinstated 
39.20 	employee who qualifies for membership in the general employees retirement plan, the public 
39.21 	employees police and fire retirement plan, the public employees defined contribution plan, 
39.22 	or the local government correctional service retirement plan, or the local government 
39.23 	probation and telecommunicator retirement plan in the format prescribed by the executive 
39.24 	director. The required enrollment data on new members must be submitted to the association 
39.25 	prior to or concurrent with the submission of the initial employee salary deduction. Also, 
39.26 	the employer shall report to the association all member employment status changes, such 
39.27 	as leaves of absence, terminations, and death, and shall report the effective dates of those 
39.28 	changes, on an ongoing basis for the payroll cycle in which they occur. If an employer fails 
39.29 	to comply with the reporting requirements under this paragraph, the executive director may 
39.30 	assess a fine of $25 for each failure if the association staff has notified the employer of the 
39.31 	noncompliance and attempted to obtain the missing data or form from the employer for a 
39.32 	period of more than three months.
39.33 	(d) The employer shall furnish data, forms, and reports as may be required by the 
39.34 	executive director for proper administration of the retirement system. Before implementing 
40.1 	new or different computerized reporting requirements, the executive director shall give 
40.2 	appropriate advance notice to governmental subdivisions to allow time for system 
40.3 	modifications.
40.4 	(e) Notwithstanding paragraph (a), the executive director may provide for less frequent 
40.5 	reporting and payments for small employers.
40.6 	(f) The executive director may establish reporting procedures and methods as required 
40.7 	to review compliance by employers with the salary and contribution reporting requirements 
40.8 	in this chapter. A review of the payroll records of a participating employer may be conducted 
40.9 	by the association on a periodic basis or as a result of concerns known to exist within a 
40.10 	governmental subdivision. An employer under review must extract requested data and 
40.11 	provide records to the association after receiving reasonable advanced notice. Failure to 
40.12 	provide requested information or materials will result in the employer being liable to the 
40.13 	association for any expenses associated with a field audit, which may include staff salaries, 
40.14 	administrative expenses, and travel expenses.

40.15 	Sec. 11. Minnesota Statutes 2024, section 353.27, subdivision 7b, is amended to read:
40.16 		Subd. 7b.Recovery of overpayments. (a) In the event the executive director determines 
40.17 	that an overpaid annuity or benefit from the general employees retirement plan of the Public 
40.18 	Employees Retirement Association, the public employees police and fire retirement plan, 
40.19 	or the local government correctional employees retirement plan, or the local government 
40.20 	probation and telecommunicator retirement plan is the result of invalid salary included in 
40.21 	the average salary used to calculate the payment amount must be recovered, the association 
40.22 	must determine the amount of the employee deductions taken in error on the invalid salary, 
40.23 	with interest determined in the manner provided for a former member under subdivision 7, 
40.24 	paragraph (e), clause (2), item (i), and must subtract that amount from the total annuity or 
40.25 	benefit overpayment, and the remaining balance of the overpaid annuity or benefit, if any, 
40.26 	must be recovered.
40.27 	(b) If the invalid employee deductions plus interest exceed the amount of the overpaid 
40.28 	benefits, the balance must be refunded to the person to whom the benefit or annuity is being 
40.29 	paid.
40.30 	(c) Any invalid employer contributions reported on the invalid salary must be credited 
40.31 	to the employer as provided in subdivision 7, paragraph (e).
40.32 	(d) If a member or former member, who is receiving a retirement annuity or disability 
40.33 	benefit for which an overpayment is being recovered, dies before recovery of the overpayment 
41.1 	is completed and a joint and survivor optional annuity is payable, the remaining balance of 
41.2 	the overpaid annuity or benefit must continue to be recovered from the payment to the 
41.3 	optional annuity beneficiary.
41.4 	(e) If the association finds that a refund has been overpaid to a former member, 
41.5 	beneficiary or other person, the amount of the overpayment must be recovered for the benefit 
41.6 	of the respective retirement fund or account.
41.7 	(f) The board of trustees shall adopt policies directing the period of time and manner 
41.8 	for the collection of any overpaid retirement or optional annuity, and survivor or disability 
41.9 	benefit, or a refund that the executive director determines must be recovered as provided 
41.10 	under this section.

41.11 	Sec. 12. Minnesota Statutes 2024, section 353.27, subdivision 11, is amended to read:
41.12 		Subd. 11.Employers; required to furnish requested information. (a) All governmental 
41.13 	subdivisions shall furnish promptly such other information relative to the employment status 
41.14 	of all employees or former employees, including, but not limited to, payroll abstracts 
41.15 	pertaining to all past and present employees, as may be requested by the executive director, 
41.16 	including schedules of salaries applicable to various categories of employment.
41.17 	(b) In the event payroll abstract records have been lost or destroyed, for whatever reason 
41.18 	or in whatever manner, so that such schedules of salaries cannot be furnished therefrom, 
41.19 	the employing governmental subdivision, in lieu thereof, shall furnish to the association an 
41.20 	estimate of the earnings of any employee or former employee for any period as may be 
41.21 	requested by the executive director. If the association is provided a schedule of estimated 
41.22 	earnings, the executive director is authorized to use the same as a basis for making whatever 
41.23 	computations might be necessary for determining obligations of the employee and employer 
41.24 	to the general employees retirement plan, the public employees police and fire retirement 
41.25 	plan, or the local government correctional employees retirement plan, or the local government 
41.26 	probation and telecommunicator retirement plan. If estimates are not furnished by the 
41.27 	employer at the request of the executive director, the executive director may estimate the 
41.28 	obligations of the employee and employer to the general employees retirement fund, the 
41.29 	public employees police and fire retirement plan, or the local government correctional 
41.30 	employees retirement plan, or the local government probation and telecommunicator 
41.31 	retirement plan based upon those records that are in its possession.

42.1 	Sec. 13. Minnesota Statutes 2024, section 353.27, subdivision 12, is amended to read:
42.2 		Subd. 12.Omitted salary deductions; obligations. (a) In the case of omission of 
42.3 	required deductions for the general employees retirement plan, the public employees police 
42.4 	and fire retirement plan, or the local government correctional employees retirement plan, 
42.5 	or the local government probation and telecommunicator retirement plan from the salary 
42.6 	of an employee, the department head or designee shall immediately, upon discovery, report 
42.7 	the employee for membership and deduct the employee deductions under subdivision 4 
42.8 	during the current pay period or during the pay period immediately following the discovery 
42.9 	of the omission. Payment for the omitted obligations may only be made in accordance with 
42.10 	reporting procedures and methods established by the executive director.
42.11 	(b) When the entire omission period of an employee does not exceed 60 days, the 
42.12 	governmental subdivision may report and submit payment of the omitted employee 
42.13 	deductions and the omitted employer contributions through the reporting processes under 
42.14 	subdivision 4.
42.15 	(c) When the omission period of an employee exceeds 60 days, the governmental 
42.16 	subdivision shall furnish to the association sufficient data and documentation upon which 
42.17 	the obligation for omitted employee and employer contributions can be calculated. The 
42.18 	omitted employee deductions must be deducted from the employee's subsequent salary 
42.19 	payment or payments and remitted to the association for deposit in the applicable retirement 
42.20 	fund. The employee shall pay omitted employee deductions due for the 60 days prior to the 
42.21 	end of the last pay period in the omission period during which salary was earned. The 
42.22 	employer shall pay any remaining omitted employee deductions and any omitted employer 
42.23 	contributions, plus interest at the applicable rate or rates specified in section 356.59, 
42.24 	subdivision 3, compounded annually, from the date or dates each omitted employee 
42.25 	contribution was first payable.
42.26 	(d) An employer shall not hold an employee liable for omitted employee deductions 
42.27 	beyond the pay period dates under paragraph (c), nor attempt to recover from the employee 
42.28 	those employee deductions paid by the employer on behalf of the employee. Omitted 
42.29 	deductions due under paragraph (c) which are not paid by the employee constitute a liability 
42.30 	of the employer that failed to deduct the omitted deductions from the employee's salary. 
42.31 	The employer shall make payment with interest at the applicable rate or rates specified in 
42.32 	section 356.59, subdivision 3, compounded annually. Omitted employee deductions are no 
42.33 	longer due if an employee terminates public service before making payment of omitted 
42.34 	employee deductions to the association, but the employer remains liable to pay omitted 
43.1 	employer contributions plus interest at the applicable rate or rates specified in section 356.59, 
43.2 	subdivision 3, compounded annually, from the date the contributions were first payable.
43.3 	(e) The association may not commence action for the recovery of omitted employee 
43.4 	deductions and employer contributions after the expiration of three calendar years after the 
43.5 	calendar year in which the contributions and deductions were omitted. Except as provided 
43.6 	under paragraph (b), no payment may be made or accepted unless the association has already 
43.7 	commenced action for recovery of omitted deductions. An action for recovery commences 
43.8 	on the date of the mailing of any written correspondence from the association requesting 
43.9 	information from the governmental subdivision upon which to determine whether or not 
43.10 	omitted deductions occurred.

43.11 	Sec. 14. Minnesota Statutes 2024, section 353.27, subdivision 12a, is amended to read:
43.12 		Subd. 12a.Terminated employees: omitted deductions. A terminated employee who 
43.13 	was a member of the general employees retirement plan of the Public Employees Retirement 
43.14 	Association, the public employees police and fire retirement plan, or the local government 
43.15 	correctional employees retirement plan, or the local government probation and 
43.16 	telecommunicator retirement plan and who has a period of employment in which previously 
43.17 	omitted employer contributions were made under subdivision 12 but for whom no, or only 
43.18 	partial, omitted employee contributions have been made, or a member who had prior coverage 
43.19 	in the association for which previously omitted employer contributions were made under 
43.20 	subdivision 12 but who terminated service before required omitted employee deductions 
43.21 	could be withheld from salary, may pay the omitted employee deductions for the period on 
43.22 	which omitted employer contributions were previously paid plus interest at the applicable 
43.23 	rate or rates specified in section 356.59, subdivision 3, compounded annually. A terminated 
43.24 	employee may pay the omitted employee deductions plus interest within six months of an 
43.25 	initial notification from the association of eligibility to pay those omitted deductions. If a 
43.26 	terminated employee is reemployed in a position covered under a public pension fund under 
43.27 	section 356.30, subdivision 3, and elects to pay omitted employee deductions, payment 
43.28 	must be made no later than six months after a subsequent termination of public service.

43.29 	Sec. 15. Minnesota Statutes 2024, section 353.27, subdivision 12b, is amended to read:
43.30 		Subd. 12b.Terminated employees: immediate eligibility. If deductions were omitted 
43.31 	from salary adjustments or final salary of a terminated employee who was a member of the 
43.32 	general employees retirement plan, the public employees police and fire retirement plan, 
43.33 	or the local government correctional employees retirement plan, or the local government 
44.1 	probation and telecommunicator retirement plan and who is immediately eligible to draw 
44.2 	a monthly benefit, the employer shall pay the omitted employer and employer additional 
44.3 	contributions plus interest on both the employer and employee amounts due at the applicable 
44.4 	rate or rates specified in section 356.59, subdivision 3, compounded annually. The employee 
44.5 	shall pay the employee deductions within six months of an initial notification from the 
44.6 	association of eligibility to pay omitted deductions or the employee forfeits the right to 
44.7 	make the payment.

44.8 	Sec. 16. Minnesota Statutes 2024, section 353.27, subdivision 13, is amended to read:
44.9 		Subd. 13.Certain warrants canceled. A warrant payable from the general employees 
44.10 	retirement fund, the public employees police and fire retirement fund, or the local government 
44.11 	correctional retirement fund, or the local government probation and telecommunicator 
44.12 	retirement fund remaining unpaid for a period of six months must be canceled into the 
44.13 	applicable retirement fund and not canceled into the state's general fund.

44.14 	Sec. 17. Minnesota Statutes 2024, section 353.27, subdivision 14, is amended to read:
44.15 		Subd. 14.Periods before initial coverage date. (a) If an entity is determined to be a 
44.16 	governmental subdivision due to receipt of a written notice of eligibility from the association 
44.17 	with respect to the general employees retirement plan, the public employees police and fire 
44.18 	retirement plan, or the local government correctional retirement plan, or the local government 
44.19 	probation and telecommunicator retirement plan, that employer and its employees are subject 
44.20 	to the requirements of subdivision 12, effective retroactively to the date that the executive 
44.21 	director of the association determines that the entity first met the definition of a governmental 
44.22 	subdivision, if that date predates the notice of eligibility.
44.23 	(b) If the retroactive time period under paragraph (a) exceeds three years, an employee 
44.24 	is authorized to purchase service credit in the applicable Public Employees Retirement 
44.25 	Association plan for the portion of the period in excess of three years, by making payment 
44.26 	under section 356.551. Notwithstanding any provision of section 356.551, subdivision 2, 
44.27 	to the contrary, regarding time limits on purchases, payment of a service credit purchase 
44.28 	amount may be made anytime before the termination of public service.
44.29 	(c) This subdivision does not apply if the applicable employment under paragraph (a) 
44.30 	included coverage by any public or private defined benefit or defined contribution retirement 
44.31 	plan, other than a firefighters relief association. If this paragraph applies, an individual is 
44.32 	prohibited from purchasing service credit from a Public Employees Retirement Association 
44.33 	plan for any period or periods specified in paragraph (a).

45.1 	Sec. 18. Minnesota Statutes 2024, section 353.30, subdivision 3, is amended to read:
45.2 		Subd. 3.Optional retirement annuity forms. (a) The board of trustees shall establish 
45.3 	optional annuities which shall take the form of a joint and survivor annuity. Except as 
45.4 	provided in subdivision 3a, the optional annuity forms shall be actuarially equivalent to the 
45.5 	forms provided in section 353.29 and subdivisions 1, 1a, 1b, 1c, and 5 or section 353H.05, 
45.6 	subdivisions 1 and 3. In establishing those optional forms, the board shall obtain the written 
45.7 	recommendation of the actuary retained under section 356.214. The recommendations shall 
45.8 	be a part of the permanent records of the board. A member or former member may select 
45.9 	an optional form of annuity, subject to the provisions of section 356.46, in lieu of accepting 
45.10 	any other form of annuity which might otherwise be available.
45.11 	(b) For purposes of computing a joint and survivor annuity, the investment return 
45.12 	assumption specified in section 356.461 must be used rather than the investment return 
45.13 	specified in section 356.215, subdivision 8.

45.14 	Sec. 19. Minnesota Statutes 2024, section 353.33, subdivision 3, is amended to read:
45.15 		Subd. 3.Computation of benefits. (a) This disability benefit is an amount equal to the 
45.16 	normal annuity payable to a member who has reached normal retirement age with the same 
45.17 	number of years of allowable service and the same average salary, as provided in section
45.18 	sections353.01, subdivision 17a, and section353.29, subdivision 3, or 353H.05, subdivision 
45.19 	1, for members of the local government probation and telecommunicator retirement plan.
45.20 	(b) A basic member shall receive a supplementary monthly benefit of $25 to age 65 or 
45.21 	the five-year anniversary of the effective date of the disability benefit, whichever is later.
45.22 	(c) If the disability benefits under this subdivision exceed the average salary as defined 
45.23 	in section 353.01, subdivision 17a, the disability benefits must be reduced to an amount 
45.24 	equal to the average salary.

45.25 	Sec. 20. Minnesota Statutes 2024, section 353.33, subdivision 7a, is amended to read:
45.26 		Subd. 7a.Trial work period. (a) This subdivision applies only to the Public Employees 
45.27 	Retirement Association general employees retirement plan and local government probation 
45.28 	and telecommunicator retirement plan.
45.29 	(b) If, following a work or non-work-related injury or illness, a member receiving 
45.30 	disability benefits attempts to return to work for the member's previous public employer or 
45.31 	attempts to return to a similar position with another public employer, on a full-time or less 
45.32 	than full-time basis, the association must continue paying the disability benefit for a period 
46.1 	not to exceed six months. The disability benefit must continue in an amount that, when 
46.2 	added to the subsequent employment earnings, does not exceed the base monthly salary the 
46.3 	member had been receiving at the date of disability or the base monthly salary rate currently 
46.4 	paid for similar positions, whichever is higher.
46.5 	(c) No deductions for the general employees retirement plan may be taken from the 
46.6 	salary of a disabled person who is attempting to return to work under this provision unless 
46.7 	the member waives further disability benefits.
46.8 	(d) A member only may return to employment and continue disability benefit payments 
46.9 	once while receiving disability benefits from the general employees retirement plan.

46.10 	Sec. 21. Minnesota Statutes 2024, section 353.33, subdivision 11, is amended to read:
46.11 		Subd. 11.Coordinated member disabilitant transfer to retirement status. The 
46.12 	disability benefits paid to a coordinated member must terminate when the person reaches 
46.13 	normal retirement age. If the coordinated member is still totally and permanently disabled 
46.14 	upon attaining normal retirement age, the coordinated member is deemed to be on retirement 
46.15 	status. If an optional annuity is elected under subdivision 3a, the coordinated member shall 
46.16 	receive an annuity under the terms of the optional annuity previously elected, or, if an 
46.17 	optional annuity is not elected under subdivision 3a, the coordinated member may elect to 
46.18 	receive a normal retirement annuity under section 353.29 or 353H.05 or an annuity equal 
46.19 	to the disability benefit paid before the coordinated member reaches normal retirement age, 
46.20 	whichever amount is greater, or elect to receive an optional annuity under section 353.30, 
46.21 	subdivision 3. The annuity of a disabled coordinated member who attains normal retirement 
46.22 	age must be computed under the law in effect upon attainment of normal retirement age. 
46.23 	Election of an optional annuity must be made before the coordinated member attains normal 
46.24 	retirement age. If an optional annuity is elected, the election is effective on the date on 
46.25 	which the person attains normal retirement age and the optional annuity begins to accrue 
46.26 	on the first day of the month next following the month in which the person attains that age.

46.27 	Sec. 22. Minnesota Statutes 2024, section 353.34, subdivision 1, is amended to read:
46.28 		Subdivision 1.Refund or deferred annuity. (a) A former member is entitled to either 
46.29 	a refund of accumulated employee deductions under subdivision 2, or to a deferred annuity 
46.30 	under subdivision 3. Application for a refund may not be made before the date of termination 
46.31 	of public service. A refund must be paid within 120 days following receipt of the application 
46.32 	unless the applicant has again become a public employee required to be covered by the 
46.33 	association.
47.1 	(b) If an individual was placed on layoff under section 353.01, subdivision 12 or 12c, a 
47.2 	refund is not payable before termination of service under section 353.01, subdivision 11a.
47.3 	(c) An individual who terminates public service covered by the Public Employees 
47.4 	Retirement Association general employees retirement plan, except members of the former 
47.5 	Minneapolis Employees Retirement Fund under section 353.01, subdivision 2b, paragraph 
47.6 	(d), the Public Employees Retirement Association police and fire retirement plan, or the 
47.7 	public employees local government correctional service retirement plan, or the local 
47.8 	government probation and telecommunicator retirement plan, and who is employed by a 
47.9 	different employer and who becomes an active member covered by one of the other two 
47.10 	plans, may receive a refund of employee contributions plus annual compound interest from 
47.11 	the plan from which the member terminated service at the applicable rate specified in 
47.12 	subdivision 2.
47.13 	(d) Refunds payable to members of the former Minneapolis Employees Retirement Fund 
47.14 	under section 353.01, subdivision 2a, paragraph (d), are governed by Minnesota Statutes 
47.15 	2008, chapter 422A.

47.16 	Sec. 23. Minnesota Statutes 2024, section 353.34, subdivision 3, is amended to read:
47.17 		Subd. 3.Deferred annuity; eligibility; computation. (a) A member who is partially 
47.18 	or 100 percent vested under section 353.01, subdivision 47, or 353H.01, subdivision 12,when 
47.19 	termination of public service or termination of membership occurs has the option of leaving 
47.20 	the member's accumulated deductions in the fund and being entitled to a deferred retirement 
47.21 	annuity commencing at normal retirement age or to a deferred early retirement annuity 
47.22 	under section 353.30, subdivision 1a, 1b, 1c, or 5, or 353H.05, subdivision 3.
47.23 	(b) The deferred annuity must be computed under section 353.29, subdivision 3, or 
47.24 	353H.05, subdivision 1, on the basis of the law in effect on the date of termination of public 
47.25 	service or termination of membership, whichever is later, and, if the later of termination of 
47.26 	public service or termination of membership is on or before December 31, 2011, the deferred 
47.27 	annuity must be augmented as provided in paragraphs (c) to (e).
47.28 	(c) The deferred annuity of any former member must be augmented from the first day 
47.29 	of the month following the termination of active service, or July 1, 1971, whichever is later, 
47.30 	to the effective date of retirement or, if earlier, December 31, 2018.
47.31 	(d) For a person who became a public employee before July 1, 2006, and who has a 
47.32 	termination of public service before January 1, 2012, the deferred annuity must be augmented 
47.33 	at the following rate or rates, compounded annually:
48.1 	(1) five percent until January 1, 1981;
48.2 	(2) three percent from January 1, 1981, until January 1 of the year following the year in 
48.3 	which the former member attains age 55 or December 31, 2011, whichever is earlier;
48.4 	(3) five percent from January 1 of the year following the year in which the former member 
48.5 	attains age 55, or December 31, 2011, whichever is earlier;
48.6 	(4) one percent from January 1, 2012, until December 31, 2018; and
48.7 	(5) after December 31, 2018, the deferred annuity must not be augmented.
48.8 	(e) For a person who became a public employee after June 30, 2006, and who has a 
48.9 	termination of public service before January 1, 2012, the deferred annuity must be augmented 
48.10 	at the following rate or rates, compounded annually:
48.11 	(1) 2.5 percent until December 31, 2011;
48.12 	(2) one percent from January 1, 2012, until December 31, 2018; and
48.13 	(3) after December 31, 2018, the deferred annuity must not be augmented.
48.14 	(f) For a person who has a termination of public service after December 31, 2011, the 
48.15 	deferred annuity must not be augmented.
48.16 	(g) The retirement annuity or disability benefit of, or the survivor benefit payable on 
48.17 	behalf of, a former member who terminated service before July 1, 1997, or the survivor 
48.18 	benefit payable on behalf of a basic or police and fire member who was receiving disability 
48.19 	benefits before July 1, 1997, which is first payable after June 30, 1997, must be increased 
48.20 	on an actuarial equivalent basis to reflect the change in the investment return actuarial 
48.21 	assumption under section 356.215, subdivision 8, from five percent to six percent under a 
48.22 	calculation procedure and tables adopted by the board and approved by the actuary retained 
48.23 	under section 356.214.
48.24 	(h) A former member qualified to apply for a deferred retirement annuity may revoke 
48.25 	this option at any time before the commencement of deferred annuity payments by making 
48.26 	application for a refund. The person is entitled to a refund of accumulated member 
48.27 	contributions within 30 days following date of receipt of the application by the executive 
48.28 	director.

48.29 	Sec. 24. Minnesota Statutes 2024, section 353.37, subdivision 5, is amended to read:
48.30 		Subd. 5.Effect on annuity. Except as provided under this section, public service 
48.31 	performed by an annuitant described in subdivision 1, paragraph (a), subsequent to retirement 
49.1 	from the general employees retirement plan, the public employees police and fire retirement 
49.2 	plan, or the local government correctional employees retirement plan, or the local government 
49.3 	probation and telecommunicator retirement plan does not increase or decrease the amount 
49.4 	of an annuity. The annuitant shall not make any further contributions to a defined benefit 
49.5 	plan administered by the association by reason of this subsequent public service.

49.6 	Sec. 25. Minnesota Statutes 2024, section 353.46, subdivision 2, is amended to read:
49.7 		Subd. 2.Rights of deferred annuitant. (a) The entitlement of a deferred annuitant or 
49.8 	other former member of the general employees retirement plan of the Public Employees 
49.9 	Retirement Association, the public employees police and fire retirement plan, or the local 
49.10 	government correctional employees retirement plan, or the local government probation and 
49.11 	telecommunicator retirement plan to receive an annuity under the law in effect at the time 
49.12 	the person terminated public service is preserved.
49.13 	(b) The entitlement of a deferred annuitant or former member of the Minneapolis 
49.14 	Employees Retirement Fund, upon merger with the general employees retirement plan of 
49.15 	the Public Employees Retirement Association, continues under the provisions of Minnesota 
49.16 	Statutes 2008, section 422A.16.

49.17 	Sec. 26. [353H.001] APPLICATION OF CHAPTER 353.
49.18 	The general provisions of chapter 353 apply to the local government probation and 
49.19 	telecommunicator retirement plan, except where otherwise specifically provided in this 
49.20 	chapter.

49.21 	Sec. 27. [353H.002] POLICY.
49.22 	It is the policy of the legislature that special consideration should be given to the pension 
49.23 	benefits for employees of governmental subdivisions who devote their time and skills to 
49.24 	assisting the community and the courts as probation officers or serving the public and public 
49.25 	safety partners as telecommunicators. Because this work can be hazardous or high stress, 
49.26 	special provisions are made by this chapter for earlier retirement and larger retirement 
49.27 	annuities than are provided to members of the general employees retirement plan under 
49.28 	chapter 353. The additional costs of these benefits are borne initially by the employees.

49.29 	Sec. 28. [353H.01] DEFINITIONS.
49.30 		Subdivision 1.Terms. For purposes of this chapter, unless the language or context 
49.31 	indicates that a different meaning is intended, the following terms have the meanings given. 
50.1 	The definitions in section 353.01 apply to this chapter unless the term is defined in this 
50.2 	section.
50.3 		Subd. 2.Executive director. "Executive director" means the executive director of the 
50.4 	Public Employees Retirement Association appointed under section 353.03, subdivision 3a.
50.5 		Subd. 3.Fund. "Fund" means the local government probation and telecommunicator 
50.6 	retirement fund.
50.7 		Subd. 4.General plan. "General plan" means the general employees retirement plan of 
50.8 	the Public Employees Retirement Association.
50.9 		Subd. 5.Member. "Member" means an individual identified as a member under section 
50.10 	353H.03 for whom retirement coverage is provided by the plan.
50.11 		Subd. 6.Normal retirement age. "Normal retirement age" means age 60.
50.12 		Subd. 7.Offset amount. "Offset amount" means an amount available to offset the cost 
50.13 	to purchase credit for past service upon the election by a member under section 353H.08, 
50.14 	if state funding becomes available.
50.15 		Subd. 8.Past service. "Past service" means allowable service credited to a member 
50.16 	before January 1, 2027, and covered by the general plan that would have been service 
50.17 	covered by the local government probation and telecommunicator retirement plan had that 
50.18 	plan been in effect before January 1, 2027.
50.19 		Subd. 9.Plan. "Plan" means the local government probation and telecommunicator 
50.20 	retirement plan of the Public Employees Retirement Association.
50.21 		Subd. 10.Probation officer. "Probation officer" means an individual who the employer 
50.22 	certifies, in the form prescribed by the executive director, is a public employee as defined 
50.23 	in section 353.01 and:
50.24 	(1) is employed as a probation officer by a county, community corrections agency, or 
50.25 	state probation agency and provides community supervision services with direct offender 
50.26 	contact; or
50.27 	(2) directly supervises one or more individuals described in clause (1).
50.28 		Subd. 11.Public safety telecommunicator. "Public safety telecommunicator" means 
50.29 	an individual who the employer certifies, in the form prescribed by the executive director, 
50.30 	is a public employee as defined in section 353.01, employed by a primary or secondary 
50.31 	public safety answering point and:
51.1 	(1) serves as a first responder by receiving, assessing, or processing requests for assistance 
51.2 	from the public and other public safety partners and coordinates the appropriate public 
51.3 	safety response;
51.4 	(2) as part of the individual's employment position, is assigned less than 50 percent of 
51.5 	the time to perform employment duties other than the duties described in clause (1); or
51.6 	(3) directly supervises one or more individuals described in clause (1) or (2).
51.7 		Subd. 12.Vesting or vested. "Vesting" or "vested" means obtaining or having obtained 
51.8 	a nonforfeitable entitlement to an annuity or benefit under the plan by having earned credit 
51.9 	for no less than three years of allowable service covered by the plan or the general plan.

51.10 	Sec. 29. [353H.02] ADMINISTRATION AND FUND DISBURSEMENT.
51.11 		Subdivision 1.Plan administration; fund. (a) The plan is established as a separate plan 
51.12 	to be administered by the board of trustees of the association and the executive director.
51.13 	(b) The board of trustees and the executive director must undertake activities in a manner 
51.14 	consistent with chapter 356A.
51.15 	(c) The association must maintain a special fund to be known as the local government 
51.16 	probation and telecommunicator retirement fund.
51.17 		Subd. 2.Investment. Assets of the fund must be deposited in the Minnesota combined 
51.18 	investment fund as provided under section 11A.14, if applicable, or otherwise invested 
51.19 	under section 11A.23.
51.20 		Subd. 3.Fund disbursement restricted. (a) The fund may be disbursed only for the 
51.21 	purposes provided for under this chapter.
51.22 	(b) The proportional share of the necessary and reasonable administrative expenses of 
51.23 	the association and any benefits provided under this chapter must be paid from the fund. 
51.24 	Retirement annuities, disability benefits, survivor benefits, and any refunds of accumulated 
51.25 	deductions may only be paid from the fund after those needs have been certified by the 
51.26 	executive director.
51.27 	(c) The amounts necessary to make the payments from the fund are annually appropriated 
51.28 	from the fund for those purposes.

51.29 	Sec. 30. [353H.03] MEMBERSHIP.
51.30 	(a) The members of the plan are probation officers and public safety telecommunicators.
52.1 	(b) A probation officer or public safety telecommunicator who first became a public 
52.2 	employee or a member of a pension fund listed in section 356.30, subdivision 3, before July 
52.3 	1, 1989, is not eligible to participate as a member of the plan.

52.4 	Sec. 31. [353H.04] CONTRIBUTIONS.
52.5 		Subdivision 1.Member contributions. (a) A member must make employee contributions 
52.6 	equal to 8.82 percent of the member's salary.
52.7 	(b) Employee contributions must be made by deduction from the member's salary, as 
52.8 	defined in section 353.01, subdivision 10, in the manner provided in section 353.27, 
52.9 	subdivision 4. If any portion of a member's salary is paid from a source other than public 
52.10 	funds, the member's employee contribution must be based on the total salary received by 
52.11 	the member from all sources.
52.12 		Subd. 2.Employer contributions. (a) The employer of a member must make employer 
52.13 	contributions equal to 7.5 percent of the member's salary.
52.14 	(b) Employer contributions must be made from money available to the employing 
52.15 	subdivision by the means and in the manner provided under section 353.28.
52.16 		Subd. 3.Deposit of contributions. Employee contributions under subdivision 1, employer 
52.17 	contributions under subdivision 2, and other amounts authorized by law, including investment 
52.18 	return on invested fund assets, must be deposited in the fund.
52.19 		Subd. 4.Collection, correction, and reporting of contributions. The requirements 
52.20 	and procedures under sections 353.27 and 353.28 apply to employee and employer 
52.21 	contributions under this section.

52.22 	Sec. 32. [353H.05] RETIREMENT ANNUITY.
52.23 		Subdivision 1.Normal retirement annuity. After termination of public service, a 
52.24 	member who has attained at least normal retirement age and is vested is entitled, upon 
52.25 	application, to a normal retirement annuity. The normal retirement annuity is equal to the 
52.26 	member's average salary multiplied by 1.9 percent for each year of allowable service.
52.27 		Subd. 2.Optional annuity; bounce-back annuity. (a) Instead of a normal retirement 
52.28 	annuity under subdivision 1, a member may elect to receive an optional annuity under 
52.29 	section 353.30, subdivision 3.
52.30 	(b) A bounce-back annuity under section 353.30, subdivisions 3a and 3c, applies to an 
52.31 	annuity under this section or a disability benefit under section 353H.06.
53.1 		Subd. 3.Early retirement annuity. After termination of public service, a member who 
53.2 	is vested and at least 55 years of age, but not yet normal retirement age, is entitled, upon 
53.3 	application, to an early retirement annuity that is actuarially equivalent to the normal 
53.4 	retirement annuity.
53.5 		Subd. 4.Allowable service in other retirement plans. If a member has earned allowable 
53.6 	service in the general plan, the public employees police and fire retirement plan, or the 
53.7 	public employees local government correctional service retirement plan before or after 
53.8 	participation under this chapter, the retirement annuity under the plan or plans must be 
53.9 	computed in accordance with the formula specified in sections 353.29 and 353.30, 353.651, 
53.10 	or 353E.04, whichever applies.
53.11 		Subd. 5.Application; annuity starting date; annuity duration. Upon application 
53.12 	under section 353.29, subdivision 4, the retirement annuity under this section begins as 
53.13 	provided in section 353.29, subdivision 7. The retirement annuity is payable for the life of 
53.14 	the recipient or in accordance with the terms of any optional annuity form selected by the 
53.15 	member.
53.16 		Subd. 6.Payment of annuities and benefits earned under the general plan. The 
53.17 	executive director must pay a retirement annuity or benefit as provided under chapter 353 
53.18 	to a member of the plan from the assets of the fund if the member was transferred from the 
53.19 	general plan to the plan on January 1, 2027, and had allowable service under the general 
53.20 	plan.
53.21 		Subd. 7.Postretirement adjustment eligibility. An annuity under this section is eligible 
53.22 	for postretirement adjustments under section 356.415.

53.23 	Sec. 33. [353H.06] DISABILITY BENEFITS.
53.24 	A vested member who becomes totally and permanently disabled as defined in section 
53.25 	353.01, subdivision 19, before normal retirement age is entitled to a disability benefit on 
53.26 	the same basis as a member of the general plan under sections 353.031, 353.33, and 353.335.

53.27 	Sec. 34. [353H.07] SURVIVOR BENEFITS.
53.28 	Upon the death of a member, survivor benefits are payable as provided under section 
53.29 	353.32 on the same basis as a member of the general plan.

54.1 	Sec. 35. [353H.08] PURCHASE OF CREDIT FOR PAST SERVICE.
54.2 		Subdivision 1.Purchase of credit for past service. (a) A member is entitled to elect a 
54.3 	onetime purchase of credit for periods of past service to be added to the member's allowable 
54.4 	service covered by this section and used in calculating the member's retirement annuity. 
54.5 	The member must repay any refunds of employee contributions previously received from 
54.6 	the general plan before making a purchase of past service credit under this section.
54.7 	(b) A member may request an estimate of the cost of a service credit purchase under 
54.8 	this paragraph.
54.9 	(1) A member may file a request with the executive director for an estimate of the 
54.10 	purchase price for up to three different periods of past service by filing an application on a 
54.11 	form approved by the executive director.
54.12 	(2) The member must file the request for an estimate prior to filing an election to purchase 
54.13 	past service under paragraph (c).
54.14 	(3) The member must submit, with the estimate request, payment of the administrative 
54.15 	fee in the amount of $250 to cover the cost of preparing the estimates. If the member proceeds 
54.16 	with the purchase, the executive director must credit the administrative fee toward the 
54.17 	purchase price.
54.18 	(4) The executive director must estimate the purchase price using the assumptions and 
54.19 	applying any offset amount as directed under subdivision 2 for the periods of past service 
54.20 	requested by the member and provide the estimates to the member.
54.21 	(c) To purchase credit for past service, a member must file an application with the 
54.22 	executive director on a form approved by the executive director before the annuity starting 
54.23 	date of the member's retirement annuity or benefit. The application must:
54.24 	(1) include documentation of the member's eligibility to make the purchase, signed 
54.25 	written permission to allow the executive director to request and receive verification of 
54.26 	applicable facts and eligibility requirements from the member's employer, and any other 
54.27 	relevant information the executive director may require;
54.28 	(2) state the amount of credit for past service the member plans to purchase and be 
54.29 	accompanied by a certification from one or more employers that the past service fulfills the 
54.30 	requirements under section 353H.01, subdivision 8; and
54.31 	(3) if the member did not previously pay the administrative fee under paragraph (b), 
54.32 	include payment of the administrative fee of $250. If the member proceeds with the purchase, 
54.33 	the executive director must credit the administrative fee toward the purchase price.
55.1 	(d) The executive director must apply the assumptions and any offset amount under 
55.2 	subdivision 2 to calculate the purchase price and notify the member. If the member elects 
55.3 	to make the purchase of credit for past service, the member must arrange for the transfer of 
55.4 	pretax money from another retirement plan. Payment must be made in one lump sum before 
55.5 	the annuity starting date of the member's retirement annuity or benefit.
55.6 	(e) Upon receipt of payment, the executive director must grant the member service credit 
55.7 	for the period of past service for which credit was purchased.
55.8 		Subd. 2.Determination of past service purchase price. (a) The executive director 
55.9 	must calculate the purchase price for the period of past service elected by the member. The 
55.10 	purchase price is an amount equal to the actuarial present value, on the date of payment, of 
55.11 	the amount of the additional retirement annuity obtained by the additional service credit 
55.12 	being purchased minus any offset amount.
55.13 	(b) The executive director must calculate the purchase price by:
55.14 	(1) using the investment return assumption specified in section 356.215, subdivision 8, 
55.15 	and the mortality table in effect for the general plan;
55.16 	(2) assuming continuous future service in the plan until the plan's minimum requirements 
55.17 	for normal retirement, or retirement with an annuity unreduced for retirement at an early 
55.18 	age, are met with the additional service credit purchased;
55.19 	(3) assuming a full-time equivalent salary or actual salary, whichever is greater, and a 
55.20 	future salary history that includes annual salary increases at the applicable salary increase 
55.21 	rate for the plan; and
55.22 	(4) reducing the amount determined under clauses (1) to (3) by any offset amount.

55.23 	Sec. 36. Minnesota Statutes 2024, section 356.20, subdivision 2, is amended to read:
55.24 		Subd. 2.Covered public pension plans and funds. This section applies to the following 
55.25 	public pension plans:
55.26 	(1) the general state employees retirement plan of the Minnesota State Retirement System;
55.27 	(2) the general employees retirement plan of the Public Employees Retirement 
55.28 	Association;
55.29 	(3) the Teachers Retirement Association;
55.30 	(4) the State Patrol retirement plan;
55.31 	(5) the St. Paul Teachers Retirement Fund Association;
56.1 	(6) the University of Minnesota faculty retirement plan;
56.2 	(7) the University of Minnesota faculty supplemental retirement plan;
56.3 	(8) the judges retirement fund;
56.4 	(9) the Bloomington Fire Department Relief Association;
56.5 	(10) a firefighters relief association governed by section 424A.091;
56.6 	(11) the public employees police and fire plan of the Public Employees Retirement 
56.7 	Association;
56.8 	(12) the correctional state employees retirement plan of the Minnesota State Retirement 
56.9 	System;
56.10 	(13) the local government correctional service retirement plan of the Public Employees 
56.11 	Retirement Association; and
56.12 	(14) the statewide volunteer firefighter plan.; and
56.13 	(15) the local government probation and telecommunicator retirement plan of the Public 
56.14 	Employees Retirement Association.

56.15 	Sec. 37. Minnesota Statutes 2024, section 356.214, subdivision 1, is amended to read:
56.16 		Subdivision 1.Actuary retention. (a) The governing board or managing or administrative 
56.17 	official of each public pension plan and retirement fund or plan enumerated in paragraph 
56.18 	(b) shall contract with an established actuarial consulting firm to conduct annual actuarial 
56.19 	valuations and related services. The principal from the actuarial consulting firm on the 
56.20 	contract must be an approved actuary under section 356.215, subdivision 1, paragraph (c).
56.21 	(b) Actuarial services must include the preparation of actuarial valuations and related 
56.22 	actuarial work for the following retirement plans:
56.23 	(1) the teachers retirement plan, Teachers Retirement Association;
56.24 	(2) the general state employees retirement plan, Minnesota State Retirement System;
56.25 	(3) the correctional employees retirement plan, Minnesota State Retirement System;
56.26 	(4) the State Patrol retirement plan, Minnesota State Retirement System;
56.27 	(5) the judges retirement plan, Minnesota State Retirement System;
56.28 	(6) the general employees retirement plan, Public Employees Retirement Association;
56.29 	(7) the public employees police and fire plan, Public Employees Retirement Association;
57.1 	(8) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund Association;
57.2 	(9) the legislators retirement plan, Minnesota State Retirement System; and
57.3 	(10) the local government correctional service retirement plan, Public Employees 
57.4 	Retirement Association.; and
57.5 	(11) the local government probation and telecommunicator retirement plan, Public 
57.6 	Employees Retirement Association.
57.7 	(c) The actuarial valuation for the legislators retirement plan must include a separate 
57.8 	calculation of total plan actuarial accrued liabilities due to constitutional officer coverage 
57.9 	under section 3A.17.
57.10 	(d) The contracts must require completion of the annual actuarial valuation calculations 
57.11 	on a fiscal year basis, with the contents of the actuarial valuation calculations as specified 
57.12 	in section 356.215, and in conformity with the standards for actuarial work adopted by the 
57.13 	Legislative Commission on Pensions and Retirement.
57.14 	The contracts must require completion of annual experience data collection and processing 
57.15 	and a quadrennial published experience study for the plans listed in paragraph (b), clauses 
57.16 	(1), (2), and (6), as provided for in the standards for actuarial work adopted by the 
57.17 	commission. The experience data collection, processing, and analysis must evaluate the 
57.18 	following:
57.19 	(1) individual salary progression;
57.20 	(2) the rate of return on investments based on the current asset value;
57.21 	(3) payroll growth;
57.22 	(4) mortality;
57.23 	(5) retirement age;
57.24 	(6) withdrawal; and
57.25 	(7) disablement.
57.26 	(e) The actuary shall annually prepare a report to the governing or managing board or 
57.27 	administrative official and the legislature, summarizing the results of the actuarial valuation 
57.28 	calculations. The actuary shall include with the report any recommendations concerning 
57.29 	the appropriateness of the support rates to achieve proper funding of the retirement plans 
57.30 	by the required funding dates. The actuary shall, as part of the quadrennial experience study, 
58.1 	include recommendations on the appropriateness of the actuarial valuation assumptions 
58.2 	required for evaluation in the study.
58.3 	(f) If the actuarial gain and loss analysis in the actuarial valuation calculations indicates 
58.4 	a persistent pattern of sizable gains or losses, the governing or managing board or 
58.5 	administrative official shall direct the actuary to prepare a special experience study for a 
58.6 	plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), or (10), in the manner provided 
58.7 	for in the standards for actuarial work adopted by the commission.

58.8 	Sec. 38. Minnesota Statutes 2025 Supplement, section 356.215, subdivision 8, is amended 
58.9 	to read:
58.10 		Subd. 8.Actuarial assumptions. (a) The actuarial valuation must use the applicable 
58.11 	following investment return assumption:

58.1358.12
	plan
	investment return 
assumption
		
58.14	general state employees retirement plan
	7%
		
58.15	correctional state employees retirement plan
	7
		
58.16	State Patrol retirement plan
	7
		
58.17
58.18
58.19	legislators retirement plan, and for the 
constitutional officers calculation of total plan 
liabilities
	0
		
58.20	judges retirement plan
	7
		
58.21	general public employees retirement plan
	7
		
58.22	public employees police and fire retirement plan
	7
		
58.23
58.24	local government correctional service retirement 
plan
	7
		
58.25
58.26	local government probation and telecommunicator 
retirement plan
	7
		
58.27	teachers retirement plan
	7
		
58.28	St. Paul teachers retirement plan
	7
		
58.29	Bloomington Fire Department Relief Association
	6
		
58.30
58.31	local monthly benefit volunteer firefighter relief 
associations
	5
		
58.32
58.33	monthly benefit retirement plans in the statewide 
volunteer firefighter retirement plan
	6
		
58.34 	(b) The actuarial valuation for each of the covered retirement plans listed in section 
58.35 	356.415, subdivision 2, and the St. Paul Teachers Retirement Fund Association must take 
58.36 	into account the postretirement adjustment rate or rates applicable to the plan as specified 
58.37 	in section 354A.29, subdivision 7, or 356.415, whichever applies.
59.1 	(c) The actuarial valuation must use the applicable salary increase and payroll growth 
59.2 	assumptions found in the appendix to the standards for actuarial work. The appendix must 
59.3 	be updated whenever new assumptions have been approved or deemed approved under 
59.4 	subdivision 18.
59.5 	(d) The assumptions set forth in the appendix to the standards for actuarial work continue 
59.6 	to apply, unless a different salary assumption or a different payroll increase assumption:
59.7 	(1) has been proposed by the governing board of the applicable retirement plan;
59.8 	(2) is accompanied by the concurring recommendation of the actuary retained under 
59.9 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most 
59.10 	recent actuarial valuation report if section 356.214 does not apply; and
59.11 	(3) has been approved or deemed approved under subdivision 18.

59.12 	Sec. 39. Minnesota Statutes 2024, section 356.302, subdivision 1, is amended to read:
59.13 		Subdivision 1.Definitions. (a) The terms used in this section are defined in this 
59.14 	subdivision.
59.15 	(b) "Average salary" means the highest average of covered salary for the appropriate 
59.16 	period of credited service that is required for the calculation of a disability benefit by the 
59.17 	covered retirement plan and that is drawn from any period of credited service and successive 
59.18 	years of covered salary in a covered retirement plan.
59.19 	(c) "Covered retirement plan" or "plan" means a retirement plan listed in subdivision 7.
59.20 	(d) "Duty-related" means a disabling illness or injury that occurred while the person was 
59.21 	actively engaged in employment duties or that arose out of the person's active employment 
59.22 	duties.
59.23 	(e) "General employee retirement plan" means a covered retirement plan listed in 
59.24 	subdivision 7, clauses (1) to (6) and (11) (5), (10), and (11).
59.25 	(f) "Occupationally disabled" means the condition of having a medically determinable 
59.26 	physical or mental impairment that makes a person unable to satisfactorily perform the 
59.27 	minimum requirements of the person's employment position or a substantially similar 
59.28 	employment position.
59.29 	(g) "Public safety employee retirement plan" means a covered retirement plan listed in 
59.30 	subdivision 7, clauses (7) (6) to (10) (9).
60.1 	(h) "Totally and permanently disabled" means the condition of having a medically 
60.2 	determinable physical or mental impairment that makes a person unable to engage in any 
60.3 	substantial gainful activity and that is expected to continue or has continued for a period of 
60.4 	at least one year or that is expected to result directly in the person's death.

60.5 	Sec. 40. Minnesota Statutes 2024, section 356.302, subdivision 7, is amended to read:
60.6 		Subd. 7.Covered retirement plans. This section applies to the following retirement 
60.7 	plans:
60.8 	(1) the general state employees retirement plan of the Minnesota State Retirement System, 
60.9 	established by chapter 352;
60.10 	(2) the unclassified state employees retirement program of the Minnesota State Retirement 
60.11 	System, established by chapter 352D;
60.12 	(3) the general employees retirement plan of the Public Employees Retirement 
60.13 	Association, established by chapter 353;
60.14 	(4) the Teachers Retirement Association, established by chapter 354;
60.15 	(5) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
60.16 	(6) the state correctional employees retirement plan of the Minnesota State Retirement 
60.17 	System, established by chapter 352;
60.18 	(7) the State Patrol retirement plan, established by chapter 352B;
60.19 	(8) the public employees police and fire plan of the Public Employees Retirement 
60.20 	Association, established by chapter 353;
60.21 	(9) the local government correctional service retirement plan of the Public Employees 
60.22 	Retirement Association, established by chapter 353E; and
60.23 	(10) the judges retirement plan, established by chapter 490.; and
60.24 	(11) the local government probation and telecommunicator retirement plan of the Public 
60.25 	Employees Retirement Association, established by chapter 353H.

60.26 	Sec. 41. Minnesota Statutes 2024, section 356.303, subdivision 4, is amended to read:
60.27 		Subd. 4.Covered retirement plans. This section applies to the following retirement 
60.28 	plans:
60.29 	(1) the legislators retirement plan, established by chapter 3A;
61.1 	(2) the general state employees retirement plan of the Minnesota State Retirement System, 
61.2 	established by chapter 352;
61.3 	(3) the correctional state employees retirement plan of the Minnesota State Retirement 
61.4 	System, established by chapter 352;
61.5 	(4) the State Patrol retirement plan, established by chapter 352B;
61.6 	(5) the elective state officers retirement plan, established by chapter 352C;
61.7 	(6) the unclassified state employees retirement program, established by chapter 352D;
61.8 	(7) the general employees retirement plan of the Public Employees Retirement 
61.9 	Association, established by chapter 353;
61.10 	(8) the public employees police and fire plan of the Public Employees Retirement 
61.11 	Association, established by chapter 353;
61.12 	(9) the local government correctional service retirement plan of the Public Employees 
61.13 	Retirement Association, established by chapter 353E;
61.14 	(10) the Teachers Retirement Association, established by chapter 354;
61.15 	(11) the St. Paul Teachers Retirement Fund Association, established by chapter 354A; 
61.16 	and
61.17 	(12) the judges retirement fund, established by chapter 490.; and
61.18 	(13) the local government probation and telecommunicator retirement plan of the Public 
61.19 	Employees Retirement Association, established by chapter 353H.

61.20 	Sec. 42. Minnesota Statutes 2024, section 356.315, subdivision 9, is amended to read:
61.21 		Subd. 9.Future benefit accrual rate increases. After January 2, 1998, benefit accrual 
61.22 	rate increases under section 352.115, subdivision 3; 352.87, subdivision 3; 352.93, 
61.23 	subdivision 3; 352.95, subdivision 1; 352B.08, subdivision 2; 352B.10, subdivision 1; 
61.24 	353.29, subdivision 3; 353.651, subdivision 3; 353.656, subdivision 1, 1a, or 3a; 353E.04, 
61.25 	subdivision 3; 353E.06, subdivision 1; 353H.05, subdivision 1; 354.44, subdivision 6; 
61.26 	354A.31, subdivision 4 or 4a; 356.30, subdivision 1; 490.121, subdivision 22; or 490.124, 
61.27 	subdivision 1, must apply only to allowable service or formula service rendered after the 
61.28 	effective date of the benefit accrual rate increase.

62.1 	Sec. 43. Minnesota Statutes 2024, section 356.32, subdivision 2, is amended to read:
62.2 		Subd. 2.Covered retirement plans. The provisions of this section apply to the following 
62.3 	retirement plans:
62.4 	(1) the general state employees retirement plan of the Minnesota State Retirement System, 
62.5 	established under chapter 352;
62.6 	(2) the correctional state employees retirement plan of the Minnesota State Retirement 
62.7 	System, established under chapter 352;
62.8 	(3) the State Patrol retirement plan, established under chapter 352B;
62.9 	(4) the general employees retirement plan of the Public Employees Retirement 
62.10 	Association, established under chapter 353;
62.11 	(5) the public employees police and fire plan of the Public Employees Retirement 
62.12 	Association, established under chapter 353;
62.13 	(6) the local government correctional service retirement plan of the Public Employees 
62.14 	Retirement Association, established under chapter 353E;
62.15 	(7) the Teachers Retirement Association, established under chapter 354; and
62.16 	(8) the St. Paul Teachers Retirement Fund Association, established under chapter 354A.; 
62.17 	and
62.18 	(9) the local government probation and telecommunicator retirement plan of the Public 
62.19 	Employees Retirement Association, established under chapter 353H.

62.20 	Sec. 44. Minnesota Statutes 2024, section 356.401, subdivision 3, is amended to read:
62.21 		Subd. 3.Covered retirement plans. The provisions of this section apply to the following 
62.22 	retirement plans:
62.23 	(1) the legislators retirement plan, established by chapter 3A, including constitutional 
62.24 	officers as specified in that chapter;
62.25 	(2) the general state employees retirement plan of the Minnesota State Retirement System, 
62.26 	established by chapter 352;
62.27 	(3) the correctional state employees retirement plan of the Minnesota State Retirement 
62.28 	System, established by chapter 352;
62.29 	(4) the State Patrol retirement plan, established by chapter 352B;
62.30 	(5) the unclassified state employees retirement program, established by chapter 352D;
63.1 	(6) the general employees retirement plan of the Public Employees Retirement 
63.2 	Association, established by chapter 353;
63.3 	(7) the public employees police and fire plan of the Public Employees Retirement 
63.4 	Association, established by chapter 353;
63.5 	(8) the public employees defined contribution plan, established by chapter 353D;
63.6 	(9) the local government correctional service retirement plan of the Public Employees 
63.7 	Retirement Association, established by chapter 353E;
63.8 	(10) the statewide lump-sum volunteer firefighter plan, established by chapter 353G;
63.9 	(11) the Teachers Retirement Association, established by chapter 354;
63.10 	(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
63.11 	(13) the individual retirement account plan, established by chapter 354B;
63.12 	(14) the higher education supplemental retirement plan, established by chapter 354C; 
63.13 	and
63.14 	(15) the judges retirement fund, established by chapter 490.; and
63.15 	(16) the local government probation and telecommunicator retirement plan of the Public 
63.16 	Employees Retirement Association, established by chapter 353H.

63.17 	Sec. 45. Minnesota Statutes 2024, section 356.415, is amended by adding a subdivision 
63.18 	to read:
63.19 		Subd. 1h.Annual postretirement adjustments; Public Employees Retirement 
63.20 	Association; local government probation and telecommunicator plan. (a) Annuities, 
63.21 	disability benefits, and survivor benefits paid from the local government probation and 
63.22 	telecommunicator retirement plan of the Public Employees Retirement Association must 
63.23 	be increased, effective as of January 1, each year by the percentage of increase determined 
63.24 	under this subdivision. The increase to the annuity or benefit must be determined by 
63.25 	multiplying the monthly amount of the annuity or benefit by the percentage of increase 
63.26 	specified in paragraph (b) after taking into account any reduction to the percentage or 
63.27 	increase required under paragraph (d).
63.28 	(b) Effective January 1, 2027, and each January 1 thereafter, the percentage of increase 
63.29 	is one percent unless the federal Social Security Administration has announced a 
63.30 	cost-of-living adjustment pursuant to United States Code, title 42, section 415(i), in the last 
63.31 	quarter of the preceding calendar year that is greater than one percent. If the cost-of-living 
64.1 	adjustment announced by the federal Social Security Administration is greater than one 
64.2 	percent, the percentage of increase must be the same as the cost-of-living adjustment 
64.3 	announced. The percentage of increase must not exceed the applicable maximum percentage 
64.4 	under paragraph (c).
64.5 	(c) On January 1 each year, the applicable maximum percentage is 1.75 percent. The 
64.6 	applicable maximum percentage is 1.5 percent if:
64.7 	(1) the market value of assets is equal to or less than 85 percent of the actuarial accrued 
64.8 	liabilities as reported by the plan's actuary in the most recent two consecutive annual actuarial 
64.9 	valuations; or
64.10 	(2) the market value of assets is equal to or less than 80 percent of the actuarial accrued 
64.11 	liabilities as reported by the plan's actuary in the most recent annual actuarial valuation.
64.12 	(d)(1) If the recipient of an annuity, disability benefit, or survivor benefit has been 
64.13 	receiving the annuity or benefit for at least 12 months as of June 30 of the calendar year 
64.14 	immediately preceding the effective date of the increase, there is no reduction in the 
64.15 	percentage of increase.
64.16 	(2) If the recipient of an annuity, disability benefit, or survivor benefit has been receiving 
64.17 	the annuity or benefit for at least one month, but less than 12 months, as of June 30 of the 
64.18 	calendar year immediately preceding the effective date of the increase, the percentage of 
64.19 	increase is multiplied by a ratio of the number of months the annuity or benefit was received 
64.20 	as of June 30 of the preceding calendar year to 12.
64.21 	(e) An increase in annuity or benefit payments under this subdivision must be made 
64.22 	automatically unless written notice is filed by the recipient with the executive director of 
64.23 	the Public Employees Retirement Association requesting that the increase not be made.

64.24 	Sec. 46. Minnesota Statutes 2024, section 356.415, subdivision 2, is amended to read:
64.25 		Subd. 2.Covered retirement plans. The provisions of this section apply to the following 
64.26 	retirement plans:
64.27 	(1) the legislators retirement plan, established under chapter 3A, including constitutional 
64.28 	officers as specified in that chapter;
64.29 	(2) the correctional state employees retirement plan of the Minnesota State Retirement 
64.30 	System, established under chapter 352;
64.31 	(3) the general state employees retirement plan of the Minnesota State Retirement System,
64.32 	established under chapter 352;
65.1 	(4) the State Patrol retirement plan, established under chapter 352B;
65.2 	(5) the general employees retirement plan of the Public Employees Retirement 
65.3 	Association, established under chapter 353;
65.4 	(6) the public employees police and fire retirement plan of the Public Employees 
65.5 	Retirement Association, established under chapter 353;
65.6 	(7) the local government correctional employees retirement plan of the Public Employees 
65.7 	Retirement Association, established under chapter 353E;
65.8 	(8) the teachers retirement plan, established under chapter 354; and
65.9 	(9) the judges retirement plan, established under chapter 490.; and
65.10 	(10) the local government probation and telecommunicator retirement plan of the Public 
65.11 	Employees Retirement Association, established under chapter 353H.

65.12 	Sec. 47. Minnesota Statutes 2024, section 356.461, subdivision 2, is amended to read:
65.13 		Subd. 2.Covered plans. This section applies to the following retirement plans:
65.14 	(1) the legislators retirement plan, established under chapter 3A, including constitutional 
65.15 	officers as specified in that chapter;
65.16 	(2) the correctional state employees retirement plan of the Minnesota State Retirement 
65.17 	System, established under chapter 352;
65.18 	(3) the general state employees retirement plan of the Minnesota State Retirement System, 
65.19 	established under chapter 352;
65.20 	(4) the State Patrol retirement plan, established under chapter 352B;
65.21 	(5) the unclassified state employees retirement program of the Minnesota State Retirement 
65.22 	System, established under chapter 352D;
65.23 	(6) the judges retirement plan, established under chapter 490;
65.24 	(7) the general employees retirement plan of the Public Employees Retirement 
65.25 	Association, established under chapter 353;
65.26 	(8) the public employees police and fire retirement plan of the Public Employees 
65.27 	Retirement Association, established under chapter 353;
65.28 	(9) the local government correctional service retirement plan of the Public Employees 
65.29 	Retirement Association, established under chapter 353E; and
65.30 	(10) the Teachers Retirement Association, established under chapter 354.; and
66.1 	(11) the local government probation and telecommunicator retirement plan of the Public 
66.2 	Employees Retirement Association, established under chapter 353H.

66.3 	Sec. 48. Minnesota Statutes 2024, section 356.465, subdivision 3, is amended to read:
66.4 		Subd. 3.Covered retirement plans. The provisions of this section apply to the following 
66.5 	retirement plans:
66.6 	(1) the general state employees retirement plan of the Minnesota State Retirement System,
66.7 	established under chapter 352;
66.8 	(2) the correctional state employees retirement plan of the Minnesota State Retirement 
66.9 	System, established under chapter 352;
66.10 	(3) the State Patrol retirement plan, established under chapter 352B;
66.11 	(4) the legislators retirement plan, established under chapter 3A;
66.12 	(5) the judges retirement plan, established under chapter 490;
66.13 	(6) the general employees retirement plan of the Public Employees Retirement 
66.14 	Association, established under chapter 353;
66.15 	(7) the public employees police and fire plan of the Public Employees Retirement 
66.16 	Association, established under chapter 353;
66.17 	(8) the teachers retirement plan, established under chapter 354;
66.18 	(9) the St. Paul Teachers Retirement Fund Association, established under chapter 354A; 
66.19 	and
66.20 	(10) the local government correctional service retirement plan of the Public Employees 
66.21 	Retirement Association, established under chapter 353E.; and
66.22 	(11) the local government probation and telecommunicator retirement plan of the Public 
66.23 	Employees Retirement Association, established under chapter 353H.

66.24 	Sec. 49. Minnesota Statutes 2024, section 356.47, subdivision 3, is amended to read:
66.25 		Subd. 3.Payment. (a) Beginning one year after the reemployment withholding period 
66.26 	ends relating to the reemployment that gave rise to the limitation, and the filing of a written 
66.27 	application, the retired member is entitled to the payment, in a lump sum, of the value of 
66.28 	the person's amount under subdivision 2, plus annual compound interest. For the general 
66.29 	state employees retirement plan, the correctional state employees retirement plan, the general 
66.30 	employees retirement plan of the Public Employees Retirement Association, the public 
67.1 	employees police and fire retirement plan, the local government correctional employees 
67.2 	retirement plan, the local government probation and telecommunicator retirement plan, and 
67.3 	the teachers retirement plan, the annual interest rate is six percent from the date on which 
67.4 	the amount was deducted from the retirement annuity to the date of payment or until January 
67.5 	1, 2011, whichever is earlier, and no interest after January 1, 2011. For the St. Paul Teachers 
67.6 	Retirement Fund Association, the annual interest is the rate of six percent from the date that 
67.7 	the amount was deducted from the retirement annuity to the date of payment or June 30, 
67.8 	2011, whichever is earlier, and with no interest accrual after June 30, 2011.
67.9 	(b) The written application must be on a form prescribed by the chief administrative 
67.10 	officer of the applicable retirement plan.
67.11 	(c) If the retired member dies before the payment provided for in paragraph (a) is made, 
67.12 	the amount is payable, upon written application, to the deceased person's surviving spouse, 
67.13 	or if none, to the deceased person's designated beneficiary, or if none, to the deceased 
67.14 	person's estate.
67.15 	(d) If the amount under subdivision 2 is an eligible rollover distribution as defined in 
67.16 	section 356.633, subdivision 1, paragraph (d), the applicable retirement plan shall provide 
67.17 	notice and an election:
67.18 	(1) to the member regarding the member's right to elect a direct rollover under section 
67.19 	356.633, subdivisions 1 and 2, in lieu of a direct payment; or
67.20 	(2) if paragraph (c) applies and the amount is to be paid to a person who is a distributee 
67.21 	as defined in section 356.633, subdivision 1, paragraph (b), to the distributee regarding the 
67.22 	distributee's right to elect a direct rollover under section 356.633, subdivisions 1 and 2, in 
67.23 	lieu of a direct payment.

67.24 	Sec. 50. Minnesota Statutes 2024, section 356.48, subdivision 1, is amended to read:
67.25 		Subdivision 1.Covered plans. This section applies to the following retirement plans:
67.26 	(1) the general state employees retirement plan of the Minnesota State Retirement System,
67.27 	established under chapter 352;
67.28 	(2) the correctional state employees retirement plan of the Minnesota State Retirement 
67.29 	System, established under chapter 352;
67.30 	(3) the State Patrol retirement plan, established under chapter 352B;
67.31 	(4) the unclassified state employees retirement program of the Minnesota State Retirement 
67.32 	System, established under chapter 352D;
68.1 	(5) the general employee retirement plan of the Public Employees Retirement Association,
68.2 	established under chapter 353;
68.3 	(6) the public employees police and fire retirement plan, established under chapter 353;
68.4 	(7) the local government correctional employees retirement plan of the Public Employees 
68.5 	Retirement Association, established under chapter 353E;
68.6 	(8) the Teachers Retirement Association, established under chapter 354;
68.7 	(9) the St. Paul Teachers Retirement Fund Association, established under chapter 354A; 
68.8 	and
68.9 	(10) the uniform judicial retirement plan, established under chapter 490.; and
68.10 	(11) the local government probation and telecommunicator retirement plan of the Public 
68.11 	Employees Retirement Association, established under chapter 353H.

68.12 	Sec. 51. Minnesota Statutes 2024, section 356.611, subdivision 6, is amended to read:
68.13 		Subd. 6.Covered retirement plan. As used in this section, "covered retirement plan" 
68.14 	means any of the following plans:
68.15 	(1) the legislator's retirement plan, established by chapter 3A, including constitutional 
68.16 	officers as specified in that chapter;
68.17 	(2) the general state employees retirement plan of the Minnesota State Retirement System, 
68.18 	established by chapter 352;
68.19 	(3) the correctional state employees retirement plan of the Minnesota State Retirement 
68.20 	System, established by chapter 352;
68.21 	(4) the State Patrol retirement plan, established by chapter 352B;
68.22 	(5) the unclassified state employees retirement plan, established by chapter 352D;
68.23 	(6) the general employees retirement plan of the Public Employees Retirement 
68.24 	Association, established by chapter 353;
68.25 	(7) the public employees police and fire retirement plan of the Public Employees 
68.26 	Retirement Association, established by chapter 353;
68.27 	(8) the public employees defined contribution plan, established by chapter 353D;
68.28 	(9) the local government correctional service retirement plan of the Public Employees 
68.29 	Retirement Association, established by chapter 353E;
68.30 	(10) the statewide volunteer firefighter retirement plan, established by chapter 353G;
69.1 	(11) the Teachers Retirement Association, established by chapter 354;
69.2 	(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
69.3 	(13) the higher education individual retirement account plan, established by chapter 
69.4 	354B;
69.5 	(14) the higher education supplemental retirement plan, established by chapter 354C;
69.6 	(15) a retirement plan of a volunteer firefighter retirement association subject to chapter 
69.7 	424A;
69.8 	(16) the judges retirement plan, established by chapter 490; or
69.9 	(17) the Bloomington Fire Department Relief Association governed by Laws 2013, 
69.10 	chapter 111, article 5, sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws 
69.11 	1965, chapter 446, as amended.; or
69.12 	(18) the local government probation and telecommunicator retirement plan of the Public 
69.13 	Employees Retirement Association, established under chapter 353H.

69.14 	Sec. 52. TRANSFER OF ASSETS.
 69.15 		Subdivision 1.Definitions. (a) For purposes of this section, unless the language or 
69.16 	context indicates that a different meaning is intended, the following terms have the meanings 
69.17 	given.
69.18 	(b) "Executive director" means the executive director of the Public Employees Retirement 
69.19 	Association appointed under Minnesota Statutes, section 353.03, subdivision 3a.
69.20 	(c) "General plan" means the general employees retirement plan of the Public Employees 
69.21 	Retirement Association.
69.22 	(d) "Probation and telecommunicator plan" means the local government probation and 
69.23 	telecommunicator retirement plan of the Public Employees Retirement Association.
69.24 		Subd. 2.Transfer of assets. (a) No later than 15 days after January 1, 2027, the assets 
69.25 	attributable to the members of the general plan whose retirement plan coverage is transferred 
69.26 	from the general plan to the probation and telecommunicator plan on January 1, 2027, must 
69.27 	be transferred from the general employees retirement fund to the local government probation 
69.28 	and telecommunicator retirement fund.
69.29 	(b) The executive director must direct the actuary retained by the Public Employees 
69.30 	Retirement Association under Minnesota Statutes, section 356.214, subdivision 1, to calculate 
69.31 	the amount of assets to be transferred under paragraph (a). The amount of assets to be 
70.1 	transferred must be calculated as provided in the applicable appendix to the standards for 
70.2 	actuarial work adopted under Minnesota Statutes, section 3.85, subdivision 10.

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

70.4 	Sec. 53. EFFECTIVE DATE.
 70.5 	Sections 1 to 44 and sections 46 to 52 are effective January 1, 2027. Section 45 is effective 
70.6 	for postretirement adjustments beginning on or after January 1, 2027.

70.7 	ARTICLE 6
70.8 	PROBATION AND TELECOMMUNICATOR PLANS; TRANSFERS FROM THE 
70.9 	GENERAL FUND; TEMPORARY REDUCTION IN EMPLOYEE CONTRIBUTION 
70.10 	RATES

70.11 	Section 1. TRANSFERS FROM THE GENERAL FUND TO THE PENSION FUNDS 
70.12 	FOR PROBATION OFFICERS AND TELECOMMUNICATORS.
 70.13 		Subdivision 1.Transfer to the local government probation and telecommunicator 
70.14 	retirement fund. $2,610,000 in fiscal year 2027 is transferred from the general fund to the 
70.15 	local government probation and telecommunicator retirement fund established by Minnesota 
70.16 	Statutes, section 353H.02, subdivision 1. This is a onetime transfer. This transfer must be 
70.17 	made no later than January 15, 2027.
70.18 		Subd. 2.Transfer to the general state employees retirement fund. $390,000 in fiscal 
70.19 	year 2027 is transferred from the general fund to the general state employees retirement 
70.20 	fund established by Minnesota Statutes, section 352.04, subdivision 1, for the benefit of the 
70.21 	probation officers and public safety telecommunicators as defined by Minnesota Statutes, 
70.22 	section 352.88, subdivision 2, clauses (i) and (j), respectively. This is a onetime transfer. 
70.23 	This transfer must be made no later than January 15, 2027.

70.24 	Sec. 2. TEMPORARY REDUCTION OF EMPLOYEE CONTRIBUTION RATES.
 70.25 		Subdivision 1.Employee contributions to the MSRS probation and telecommunicator 
70.26 	subplan. The additional employee contribution required under Minnesota Statutes, section 
70.27 	352.88, subdivision 5, paragraph (a), is reduced from 2.71 percent of salary to two percent 
70.28 	of salary through August 31, 2028.
70.29 		Subd. 2.Employee contributions to the PERA probation and telecommunicator 
70.30 	plan. The employee contribution required under Minnesota Statutes, section 353H.04, 
70.31 	subdivision 1, paragraph (a), is reduced from 8.82 percent of salary to eight percent of salary 
70.32 	through August 31, 2028.
71.1 		Subd. 3.Expiration. This section expires September 1, 2028.

71.2 	Sec. 3. EFFECTIVE DATE.
 71.3 	Sections 1 and 2 are effective January 1, 2027.

71.4 	ARTICLE 7
71.5 	VOLUNTEER FIREFIGHTERS

71.6 	Section 1. Minnesota Statutes 2024, section 353G.02, subdivision 4, is amended to read:
71.7 		Subd. 4.Periodic audit; biennial actuarial valuation; biennial annual funding 
71.8 	report. (a) The legislative auditor shall periodically audit the retirement fund.
71.9 	(b) The executive director must retain an approved actuary under section 356.214 to 
71.10 	perform biennial actuarial valuations of each fire department account in the monthly division. 
71.11 	The actuarial valuation must conform with section 356.215 and the standards for actuarial 
71.12 	work. The actuarial valuation must contain sufficient detail for each participating employer 
71.13 	to ascertain the actuarial condition of its account in the retirement fund and the amount of 
71.14 	its required contribution to the account.
71.15 	(c) The executive director must perform biennial annual funding assessments of each 
71.16 	fire department account in the lump-sum division defined benefit plan. The assessment must 
71.17 	comply with section 353G.08, subdivision 1 or 1a, as applicable.

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

71.19 	Sec. 2. Minnesota Statutes 2024, section 353G.08, subdivision 1, is amended to read:
71.20 		Subdivision 1.Biennial Annual funding reports; lump-sum division. (a) The executive 
71.21 	director must annually determine the funding requirements for each fire department account 
71.22 	in the lump-sum division on or before August 1 every other year. The funding requirements 
71.23 	computed under this subdivision must be determined using a mathematical procedure 
71.24 	developed and certified as accurate by the approved actuary retained by the association and 
71.25 	must be based on present value factors using a six percent investment return rate, without 
71.26 	any decrement assumptions. The executive director must provide written notice of the 
71.27 	funding requirements to the entity or entities associated with the fire department whose 
71.28 	active firefighters are covered by the plan.
71.29 	(b) The overall funding balance of each fire department account for the current calendar 
71.30 	year must be determined in the following manner:
72.1 	(1) The total accrued liability for all active and deferred members of the fire department 
72.2 	as of December 31 of the current year must be calculated based on the service credit of 
72.3 	active and deferred members as of that date.
72.4 	(2) The assets of the fire department account projected to December 31 of the current 
72.5 	year, including receipts by and disbursements from the account anticipated to occur on or 
72.6 	before December 31, must be calculated. The executive director must begin phasing in the 
72.7 	use of actuarial value of assets in making this calculation beginning with the funding reports 
72.8 	for 2026.
72.9 	(3) The amount of the assets calculated under clause (2) must be subtracted from the 
72.10 	amount of the total accrued liability calculated under clause (1). If the amount of the assets 
72.11 	exceeds the amount of the total accrued liability, then the account is considered to have a 
72.12 	surplus over full funding. If the amount of the assets is less than the amount of the total 
72.13 	accrued liability, then the account is considered to have a deficit from full funding. If the 
72.14 	amount of assets is equal to the amount of the total accrued liability, then the account is 
72.15 	considered to be fully funded.
72.16 	(c) The financial requirements of each fire department for the following calendar year 
72.17 	must be determined in the following manner:
72.18 	(1) The total accrued liability for all active and deferred members of the fire department 
72.19 	as of December 31 of the calendar year next following the current calendar year must be 
72.20 	calculated based on the service used in the calculation under paragraph (b), clause (1), 
72.21 	increased by one year.
72.22 	(2) The increase in the total accrued liability of the account for the following calendar 
72.23 	year over the total accrued liability of the account for the current year must be calculated.
72.24 	(3) The amount of administrative expenses of the account must be calculated by 
72.25 	multiplying the per-person dollar amount of the administrative expenses for the most recent 
72.26 	prior calendar year by the number of active and deferred firefighters reported to the 
72.27 	association on the most recent service credit certification form for the account.
72.28 	(4) If the account is fully funded, the financial requirement of the account for the 
72.29 	following calendar year is the total of the amounts calculated under clauses (2) and (3).
72.30 	(5) If the account has a deficit from full funding, the financial requirement of the account 
72.31 	for the following calendar year is the total of the amounts calculated under clauses (2) and 
72.32 	(3) plus an amount equal to one-tenth of the amount of the deficit from full funding of the 
72.33 	account.
73.1 	(6) If the account has a surplus over full funding, the financial requirement of the account 
73.2 	for the following calendar year is the financial requirement of the account calculated as 
73.3 	though the account was fully funded under clause (4) and, if the account has also had a 
73.4 	surplus over full funding during the prior two years, additionally reduced by an amount 
73.5 	equal to one-tenth of the amount of the surplus over full funding of the account.
73.6 	(d) The required contribution of the entity or entities associated with the fire department 
73.7 	whose active firefighters are covered by the lump-sum division is the annual financial 
73.8 	requirements of the fire department account under paragraph (c) reduced by the amount of 
73.9 	any fire state aid payable under chapter 477B or police and firefighter retirement 
73.10 	supplemental state aid payable under section 423A.022 that is reasonably anticipated to be 
73.11 	received by the retirement plan attributable to the entity or entities during the following 
73.12 	calendar year, and an amount of investment earnings on the assets projected to be received 
73.13 	during the following calendar year calculated at the rate of six percent per annum. The 
73.14 	required contribution must be allocated between the entities if more than one entity is 
73.15 	involved. A reasonable amount of anticipated fire state aid is an amount that does not exceed 
73.16 	the fire state aid received in the prior year multiplied by the factor 1.035.
73.17 	(e) The financial requirement for each fire department account in the lump-sum division 
73.18 	for the second year of the biennial valuation period must be in the amount determined in 
73.19 	paragraph (d) increased by six percent, but no more than the excess, if any, of the amount 
73.20 	determined under paragraph (c), clause (1), less the actual market value of assets in the fire 
73.21 	department account as of that date.
73.22 	(f) (e) The required contribution calculated in paragraph (d) must be paid to the retirement 
73.23 	plan on or before December 31 of the year for which it was calculated. If the contribution 
73.24 	is not received by the plan by December 31, it is payable with interest at an annual compound 
73.25 	rate of six percent from the date due until the date payment is received by the plan. If the 
73.26 	entity does not pay the full amount of the required contribution, the executive director shall 
73.27 	collect the unpaid amount under section 353.28, subdivision 6.

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

73.29 	Sec. 3. Minnesota Statutes 2024, section 424A.001, subdivision 8, is amended to read:
73.30 		Subd. 8.Firefighting service. "Firefighting service" means duties performed by 
73.31 	firefighters and, if approved by the appropriate municipality or municipalities under section 
73.32 	424A.01, duties performed by fire prevention personnel and volunteer emergency medical 
73.33 	personnel.

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

74.2 	Sec. 4. Minnesota Statutes 2024, section 424A.001, subdivision 9, is amended to read:
74.3 		Subd. 9.Separate from active service. "Separate from active service" means that a 
74.4 	firefighter permanently ceases ceasing to perform fire suppression duties and fire prevention 
74.5 	duties and, permanently ceases to supervise fire suppression, and fire prevention dutiesall 
74.6 	firefighting service with a particular fire department.

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

74.8 	Sec. 5. Minnesota Statutes 2024, section 424A.001, subdivision 9a, is amended to read:
74.9 		Subd. 9a.Break in service. "Break in service" means temporarily ceasing all of the 
74.10 	following to perform and supervise all firefighting service with a particular fire department:.
74.11 	(1) performing fire suppression duties;
74.12 	(2) performing fire prevention duties;
74.13 	(3) supervising fire suppression duties; and
74.14 	(4) supervising fire prevention duties.

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

74.16 	Sec. 6. Minnesota Statutes 2024, section 424A.001, subdivision 9b, is amended to read:
74.17 		Subd. 9b.Firefighter. "Firefighter" means a person who is a member of a fire department 
74.18 	and a volunteer firefighter, paid on-call firefighter, part-time firefighter, full-time firefighter, 
74.19 	career firefighter, or any combination thereof and who, in that capacity, engages in 
74.20 	firefighting service.

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

74.22 	Sec. 7. [424A.012] RETURN TO ACTIVE FIREFIGHTING SERVICE.
74.23 		Subdivision 1.Return to active firefighting without prior receipt of pension or 
74.24 	benefit. (a) This subdivision governs the service pension calculation requirements of a 
74.25 	firefighter who returns to active service after a break in service and who has not previously 
74.26 	been paid a service pension or disability benefit from the relief association. This subdivision 
74.27 	applies to all breaks in service, except that the resumption service requirements of this 
74.28 	subdivision do not apply to leaves of absence made available by federal or state statute.
75.1 	(b) If a firefighter who has a break in service of any duration resumes performing active 
75.2 	firefighting with the fire department associated with the relief association and if permitted 
75.3 	in the bylaws of the relief association, the firefighter may again become an active member 
75.4 	of the relief association, subject to the requirements of this subdivision and the service 
75.5 	pension calculation requirements under this section.
75.6 	(c) A firefighter who has been granted an approved leave of absence not exceeding one 
75.7 	year by the fire department or the relief association is exempt from any minimum period 
75.8 	of resumption service requirement established under paragraph (f).
75.9 	(d) A firefighter who has a break in service not exceeding one year but has not been 
75.10 	granted an approved leave of absence may be made exempt from any minimum period of 
75.11 	resumption service requirement established under paragraph (f).
75.12 	(e) A firefighter may qualify to receive a service pension from the relief association for 
75.13 	the original and resumption service periods if the firefighter:
75.14 	(1) is a former firefighter who has not been paid a service pension or disability benefit;
75.15 	(2) returns to active relief association membership under paragraph (b); and
75.16 	(3) meets the service requirements of section 424A.016, subdivision 3, or 424A.02, 
75.17 	subdivision 2, as applicable, and as defined in the bylaws in effect on the date of the 
75.18 	firefighter's separation from active service, based on the original and resumption years of 
75.19 	service credit.
75.20 	(f) A defined benefit relief association may define in the relief association's bylaws a 
75.21 	minimum period of resumption service requirement that applies to firefighters who return 
75.22 	to active membership and who have not been paid a service pension or disability benefit 
75.23 	for their original period of service. The service pension benefit level used to calculate any 
75.24 	service pension payable for both the original and resumption service periods is:
75.25 	(1) the service pension benefit level in effect on the date of the firefighter's separation 
75.26 	from active resumption service if a minimum period of resumption service requirement is 
75.27 	defined in the bylaws and is completed prior to a firefighter's cessation of resumption service 
75.28 	or if no resumption service is defined in the bylaws; or
75.29 	(2) the service pension benefit level in effect on the date of the firefighter's termination 
75.30 	of original service if a minimum period of resumption service requirement is defined in the 
75.31 	bylaws but is not completed prior to a firefighter's cessation of resumption service.
76.1 	(g) Any service pension payable under this subdivision is less any amounts previously 
76.2 	forfeited under section 424A.016, subdivision 4, or 424A.02, subdivision 3, paragraph (c), 
76.3 	as applicable.
76.4 		Subd. 2.Return to active firefighting after receipt of pension or benefit. (a) This 
76.5 	subdivision governs the service pension calculation requirements of a firefighter who resumes 
76.6 	performing active firefighting service with the fire department associated with the relief 
76.7 	association after being paid a service pension or disability benefit from the relief association. 
76.8 	The firefighter must wait at least 60 days following receipt of the pension or benefit before 
76.9 	resuming active firefighting service with the fire department and, if permitted in the bylaws 
76.10 	of the relief association, active membership in the relief association.
76.11 	(b) A firefighter may qualify to receive a service pension from the relief association for 
76.12 	the resumption service period if the firefighter:
76.13 	(1) is a former firefighter who has been paid a service pension or disability benefit or is 
76.14 	receiving a monthly benefit service pension;
76.15 	(2) returns to active relief association membership; and
76.16 	(3) meets the service requirements defined in the relief association's bylaws in effect on 
76.17 	the date of the firefighter's separation from active service and, as applicable:
76.18 	(i) paragraph (g);
76.19 	(ii) section 424A.016, subdivision 3; or
76.20 	(iii) section 424A.02, subdivision 2.
76.21 	(c) For defined benefit relief associations, the service pension for the resumption service 
76.22 	period must be calculated by applying the service pension benefit level in effect on the date 
76.23 	of the firefighter's termination of resumption service for all years of the resumption service.
76.24 	(d) For defined contribution relief associations, the service pension for the resumption 
76.25 	service period must be calculated to include allocations credited to the firefighter's individual 
76.26 	account during the resumption period of service and deductions for administrative expenses, 
76.27 	if applicable.
76.28 	(e) If provided in the bylaws, a firefighter who returns to active relief association 
76.29 	membership may continue to collect a monthly service pension from the relief association, 
76.30 	notwithstanding the requirement under section 424A.02, subdivision 1, that the firefighter 
76.31 	has separated from active service.
77.1 	(f) If a firefighter receiving a monthly benefit service pension returns to active monthly 
77.2 	benefit relief association membership under paragraph (b):
77.3 	(1) the firefighter's monthly service pension payments are suspended as of the first day 
77.4 	of the month next following the date on which the firefighter returns to active membership 
77.5 	if the relief association bylaws prohibit the firefighter from collecting a monthly service 
77.6 	pension;
77.7 	(2) the firefighter is entitled to an additional monthly benefit service pension upon a 
77.8 	subsequent cessation of duties calculated based on the resumption service credit and the 
77.9 	service pension accrual amount in effect on the date of the termination of the resumption 
77.10 	service; and
77.11 	(3) if the monthly service pension payments were suspended under clause (1), the 
77.12 	suspended initial service pension resumes as of the first of the month next following the 
77.13 	termination of the resumption service.
77.14 	(g) A relief association may define in the relief association's bylaws vesting requirements 
77.15 	that apply solely to former firefighters who have been paid a service pension or disability 
77.16 	benefit and subsequently return to active relief association membership. If a relief association 
77.17 	elects to define vesting requirements that are applicable solely to these former firefighters, 
77.18 	the requirements may be different than the requirements for all other relief association 
77.19 	members and need not comply with the service requirements of section 424A.016, subdivision 
77.20 	3, or 424A.02, subdivision 2, as applicable, but cannot require more than 20 years of active 
77.21 	service for full vesting.
77.22 	(h) No firefighter may be paid a service pension more than once for the same period of 
77.23 	service.

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

77.25 	Sec. 8. Minnesota Statutes 2024, section 424A.014, subdivision 1, is amended to read:
77.26 		Subdivision 1.Financial report and audit. (a) An annual financial report and audited 
77.27 	financial statements in accordance with paragraphs (c) to (e) must be submitted by the board 
77.28 	of trustees of the Bloomington Fire Department Relief Association and the board of trustees 
77.29 	of each firefighters relief association with special fund assets of at least $750,000 $1,000,000
77.30 	or special fund liabilities of at least $750,000 $1,000,000, according to any the previous 
77.31 	year's financial report.
77.32 	(b) The board of trustees of a firefighters relief association with special fund assets of 
77.33 	less than $750,000 $1,000,000 and special fund liabilities of less than $750,000 $1,000,000, 
78.1 	according to each the previous year's financial report, may submit an annual financial report 
78.2 	and audited financial statements in accordance with paragraphs (c) to (e). If the special fund 
78.3 	assets or special fund liabilities of a firefighters relief association to which this paragraph 
78.4 	applies subsequently exceed $1,000,000 as of the beginning of a calendar year, then an 
78.5 	annual financial report and audited financial statements are required under paragraph (a), 
78.6 	beginning with reports filed with the state auditor in the calendar year following the calendar 
78.7 	year in which the $1,000,000 threshold was exceeded.
78.8 	(c) The financial report must cover the relief association's special fund and general fund 
78.9 	and be in the style and form prescribed by the state auditor. The financial report must be 
78.10 	countersigned by:
78.11 	(1) the municipal clerk or clerk-treasurer of the municipality in which the relief 
78.12 	association is located if the relief association is directly associated with a municipal fire 
78.13 	department;
78.14 	(2) the municipal clerk or clerk-treasurer of the largest municipality in population that 
78.15 	contracts with the independent nonprofit firefighting corporation if the firefighters relief 
78.16 	association is a subsidiary of an independent nonprofit firefighting corporation, and by the 
78.17 	secretary of the independent nonprofit firefighting corporation; or
78.18 	(3) the chief financial official of the county in which the firefighters relief association 
78.19 	is located or primarily located if the relief association is associated with a fire department 
78.20 	that is not located in or associated with an organized municipality.
78.21 	(d) The financial report must be retained in the office of the Bloomington Fire Department 
78.22 	Relief Association or the firefighters relief association for public inspection and must be 
78.23 	filed with the governing body of the government subdivision in which the associated fire 
78.24 	department is located after the close of the fiscal year. One copy of the financial report must 
78.25 	be furnished to the state auditor on or before June 30 after the close of the fiscal year.
78.26 	(e) Audited financial statements that present the true financial condition of the relief 
78.27 	association's special fund and general fund must be attested to by a certified public accountant 
78.28 	or by the state auditor and must be filed with the state auditor on or before June 30 after the 
78.29 	close of the fiscal year. Audits must be conducted in compliance with generally accepted 
78.30 	auditing standards and section 6.65 governing audit procedures. The state auditor may accept 
78.31 	audited financial statements in lieu of the financial report required in paragraph (a).

78.32 	EFFECTIVE DATE. This section is effective December 31, 2026, and applies to 
78.33 	audited financial statements for calendar year 2026 and thereafter. A relief association with 
78.34 	special fund assets of less than $1,000,000 and special fund liabilities of less than $1,000,000 
79.1 	on December 31, 2026, is not required to submit audited financial statements under Minnesota 
79.2 	Statutes, section 424A.014, subdivision 1, unless and until the association's special fund 
79.3 	assets or special fund liabilities exceed $1,000,000, even if audited financial statements 
79.4 	were required on the date immediately prior to December 31, 2026.

79.5 	Sec. 9. Minnesota Statutes 2024, section 424A.016, subdivision 4, is amended to read:
79.6 		Subd. 4.Individual accounts. (a) An individual account must be established for each 
79.7 	firefighter who is a member of the relief association.
79.8 	(b) To each individual active member account must be credited an equal share of:
79.9 	(1) any amounts of fire state aid and police and firefighter retirement supplemental state 
79.10 	aid received by the relief association;
79.11 	(2) any amounts of municipal contributions to the relief association raised from levies 
79.12 	on real estate or from other available municipal revenue sources exclusive of fire state aid; 
79.13 	and
79.14 	(3) any amounts equal to the share of the assets of the special fund to the credit of:
79.15 	(i) any former member who terminated active service with the fire department to which 
79.16 	the relief association is associated before meeting the minimum service requirement provided 
79.17 	for in subdivision 2, paragraph (b), and either has not returned to active service with the 
79.18 	fire department for a period no shorter than five years or has died and no survivor benefit 
79.19 	or death benefit is payable; or
79.20 	(ii) any member who terminated active service before becoming 100 percent vested in 
79.21 	the member's account under subdivision 2, paragraph (b), and any applicable provision of 
79.22 	the bylaws of the relief association.
79.23 	(c) In addition, any investment return on the assets of the special fund must be credited 
79.24 	in proportion to the share of the assets of the special fund to the credit of each individual 
79.25 	active member account and inactive member account, unless the inactive member is a 
79.26 	deferred member as defined in subdivision 6.
79.27 	(d) Administrative expenses of the relief association payable from the special fund may 
79.28 	be deducted from individual accounts in a manner specified in the bylaws of the relief 
79.29 	association.
79.30 	(e) Amounts to be credited to individual accounts under paragraph (b) must be allocated 
79.31 	uniformly for all years of active service and allocations must be made for all years of service, 
79.32 	except for caps on service credit if so provided in the bylaws of the relief association. 
80.1 	Amounts forfeited under paragraph (b), clause (3), before a resumption of active service 
80.2 	and membership under section 424A.01, subdivision 6,424A.012remain forfeited and may 
80.3 	not be reinstated upon the resumption of active service and membership. The allocation 
80.4 	method may utilize monthly proration for fractional years of service, as the bylaws or articles 
80.5 	of incorporation of the relief association so provide. The bylaws or articles of incorporation 
80.6 	may define a "month," but the definition must require a calendar month to have at least 16 
80.7 	days of active service. If the bylaws or articles of incorporation do not define a "month," a 
80.8 	"month" is a completed calendar month of active service measured from the member's date 
80.9 	of entry to the same date in the subsequent month.
80.10 	(f) At the time that the payment of a service pension commences under subdivision 2 
80.11 	and any applicable provision of the bylaws of the relief association, a retiring member is 
80.12 	entitled to that portion of the assets of the special fund to the credit of the member in the 
80.13 	individual member account which is nonforfeitable under subdivision 3 and any applicable 
80.14 	provision of the bylaws of the relief association based on the number of years of service to 
80.15 	the credit of the retiring member.
80.16 	(g) Annually, the secretary of the relief association shall certify the individual account 
80.17 	allocations to the state auditor at the same time that the annual financial statement or financial 
80.18 	report and audit of the relief association, whichever applies, is due under section 424A.014.

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

80.20 	Sec. 10. Minnesota Statutes 2025 Supplement, section 424A.016, subdivision 6, is amended 
80.21 	to read:
80.22 		Subd. 6.Deferred service pensions. (a) A "deferred member" means a member of a 
80.23 	relief association who has separated from active service and membership and has completed 
80.24 	the minimum service and membership requirements in subdivision 2. The requirement that 
80.25 	a member separate from active service and membership is waived for any person who has 
80.26 	discontinued volunteer firefighter and paid on-call firefighter duties and is employed on a 
80.27 	part-time or full-time basis under section 424A.015, subdivision 1.
80.28 	(b) A deferred member is entitled to receive a deferred service pension as soon as 
80.29 	practicable after the member submits a valid written application for the distribution and 
80.30 	complies with any conditions as to age prescribed by the relief association's bylaws.
80.31 	(c) A defined contribution relief association must credit interest or additional investment 
80.32 	performance on the deferred lump-sum service pension during the period of deferral for all 
80.33 	deferred members on or after January 1, 2021. A defined contribution relief association 
81.1 	may specify in its bylaws the method by which it will credit interest or additional investment 
81.2 	performance to the accounts of deferred members. Such method shall be limited to one of 
81.3 	the three methods provided in this paragraph. In the event the bylaws do not specify a 
81.4 	method, the interest or additional investment performance must be credited using the method 
81.5 	defined in clause (3). The permissible methods are:
81.6 	(1) at the investment performance rate actually earned on that portion of the assets if the 
81.7 	deferred benefit amount is invested by the relief association in a separate account established 
81.8 	and maintained by the relief association;
81.9 	(2) at the investment performance rate actually earned on that portion of the assets if the 
81.10 	deferred benefit amount is invested in a separate investment vehicle held by the relief 
81.11 	association; or
81.12 	(3) at the investment return on the assets of the special fund of the defined contribution 
81.13 	relief association in proportion to the share of the assets of the special fund to the credit of 
81.14 	each individual deferred member account.
81.15 	(d) Notwithstanding the requirements of section 424A.015, subdivision 6, bylaw 
81.16 	amendments made in accordance with paragraph (c) on or before January 1, 2022, shall 
81.17 	apply to members already in deferred status as of January 1, 2021.
81.18 	(e) Unless the bylaws provide differently, interest or additional investment performance 
81.19 	must be allocated to each deferred member account beginning on the date that the member 
81.20 	separates from active service and membership and ending on the last date that the deferred 
81.21 	member account is valued before the final distribution of the deferred service pension.
81.22 	(f) Notwithstanding the requirements of section 424A.015, subdivision 6, a relief 
81.23 	association that amends its bylaws to lower the required minimum retirement age may 
81.24 	specify in the bylaws amendment that the lower minimum retirement age applies to members 
81.25 	who separated from active service and membership prior to the effective date of the bylaws 
81.26 	amendment.

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

81.28 	Sec. 11. Minnesota Statutes 2025 Supplement, section 424A.05, subdivision 3, is amended 
81.29 	to read:
81.30 		Subd. 3.Authorized disbursements from special fund. (a) Disbursements from the 
81.31 	special fund may not be made for any purpose other than one of the following:
82.1 	(1) for the payment or direct rollover under section 356.633 of service pensions to 
82.2 	members of the relief association if authorized and paid under law and the bylaws governing 
82.3 	the relief association;
82.4 	(2) for the purchase of an annuity for the applicable person under section 424A.015, 
82.5 	subdivision 3, or to replace a monthly benefit service pension under section 424A.093, 
82.6 	subdivision 1;
82.7 	(3) for the payment or direct rollover under section 356.633 of temporary or permanent 
82.8 	disability benefits to disabled members of the relief association if authorized and paid under 
82.9 	law and specified in amount in the bylaws governing the relief association;
82.10 	(4) for the payment or direct rollover under section 356.633 of survivor benefits or for 
82.11 	the payment of a death benefit to the estate of the deceased active or deferred firefighter, if 
82.12 	authorized and paid under law and specified in amount in the bylaws governing the relief 
82.13 	association;
82.14 	(5) for the payment of the fees, dues and assessments to the Minnesota State Fire 
82.15 	Department Association and to the Minnesota State Fire Chiefs Association in order to 
82.16 	entitle relief association members to membership in and the benefits of these associations 
82.17 	or organizations;
82.18 	(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit 
82.19 	Association, or an insurance company licensed by the state of Minnesota offering casualty 
82.20 	insurance, in order to entitle relief association members to membership in and the benefits 
82.21 	of the association or organization;
82.22 	(7) for the payment of administrative expenses of the relief association as authorized 
82.23 	under subdivision 3b; and
82.24 	(8) for the payment or direct rollover under section 356.633 of a service pension to the 
82.25 	former spouse of a member or former member of a relief association, if the former spouse 
82.26 	is an alternate payee designated in a qualified domestic relations order under subdivision 
82.27 	5.
82.28 	(b) Checks or authorizations for electronic fund transfers for disbursements authorized 
82.29 	by this section must be signed by the relief association treasurer and at least one other elected 
82.30 	trustee who has been designated by the board of trustees to sign the checks or authorizations. 
82.31 	A relief association may make disbursements authorized by this subdivision by electronic 
82.32 	fund transfers only if the specific method of payment and internal control policies and 
82.33 	procedures regarding the method are approved by the board of trustees.

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

83.2 	Sec. 12. Minnesota Statutes 2024, section 424B.22, subdivision 5, is amended to read:
83.3 		Subd. 5.Determination of assets and liabilities. (a) The board of trustees shall must
83.4 	determine the following as of the date of termination of the retirement plan:
83.5 	(1) the fair market value of the assets of the special fund;
83.6 	(2) the present value of each participant's accrued benefit, taking into account full vesting 
83.7 	under subdivision 3 and any increased lump-sum or monthly benefit level approved under 
83.8 	subdivision 4;
83.9 	(3) the present value of any benefit remaining to be paid to each any retiree in pay status, 
83.10 	if any and to any other benefit recipient; and
83.11 	(4) administrative expenses incurred or reasonably anticipated to be incurred through 
83.12 	the date on which all retirement benefits have been distributed or transferred or, if later, the 
83.13 	effective date of the dissolution of the relief association.
83.14 	(b) The board of trustees shall must compile a schedule that includes the following 
83.15 	information:
83.16 	(1) the name of each participant, including each retiree in pay status, to whom a an 
83.17 	accrued benefit or pension is or will be owed;
83.18 	(2) the name of each other benefit recipient to whom a benefit or pension is or will be 
83.19 	owed; and
83.20 	(3) for each individual described in clauses (1) and (2), the amount of the benefit or 
83.21 	pension to which the individual is entitled under the bylaws of the relief association, taking 
83.22 	into account the changes required or permitted by this section, and the corresponding number 
83.23 	of years of service on which the benefit or pension is based, and the earliest date on which 
83.24 	the benefit or pension would have been payable under the bylaws of the relief association.
83.25 	(c) If the relief association is dissolving, in addition to the determination under paragraph 
83.26 	(a) for the retirement plan, the board of trustees shall must determine, as of the effective 
83.27 	date of the dissolution of the relief association, the legal obligations of the general fund of 
83.28 	the relief association.

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

84.1 	Sec. 13. Minnesota Statutes 2024, section 424B.22, subdivision 7, is amended to read:
84.2 		Subd. 7.Allocation of surplus. (a) If the retirement plan is a defined benefit plan and 
84.3 	if, after completing the determination of assets, liabilities, and administrative expenses under 
84.4 	subdivision 5, there is the retirement plan's assets exceed liabilities and administrative 
84.5 	expenses, resulting in a surplus, the board of trustees shall must transfer to the affiliated 
84.6 	municipality the lesser of (1) the amount of the surplus, or (2) the sum of all required 
84.7 	contributions, without investment earnings or interest thereon, made by the municipality to 
84.8 	the relief association during the year in which the termination of the retirement plan occurs 
84.9 	or during the preceding nine years.
84.10 	(b) If the affiliated municipality did not make any required contributions to the relief 
84.11 	association during the current or preceding nine years or if, after the transfer described in 
84.12 	paragraph (a), there is surplus remaining, the relief association and the municipality will 
84.13 	mutually agree on an allocation between them of the remaining surplus.
84.14 	(c) If, within 180 days of after the date of termination of the retirement plan, the 
84.15 	municipality and relief association have not reached an agreement on the allocation of the 
84.16 	surplus under paragraph (b), then 50 percent of the surplus shall must be retained by the 
84.17 	relief association and 50 percent of the surplus shall must be transferred to the affiliated 
84.18 	municipality.
84.19 	(d) Any surplus retained by the relief association under paragraph (c) shall must be 
84.20 	allocated among all participants eligible to share in the surplus under paragraph (e) in the 
84.21 	same proportion that the present value of the accrued benefit for each eligible participant 
84.22 	bears to the total present value of the accrued benefits of all participants eligible to share 
84.23 	in the surplus, and each eligible participant's accrued benefit, as determined under subdivision 
84.24 	5, paragraph (a), clause (2), shall must be increased by the participant's share of the surplus.
84.25 	If a participant is receiving or has elected to receive a monthly pension, the participant's 
84.26 	accrued benefit for the purpose of allocating surplus is the lump sum present value of the 
84.27 	monthly pension benefit to which the participant is entitled to receive.
84.28 	(e) The board of trustees shall must determine eligibility to share in the surplus, which 
84.29 	may include all participants and any former participants who, within the last three years or 
84.30 	such other number of years as determined by the board of trustees, separated from active 
84.31 	service and received their retirement benefit. If the board of trustees decides to include 
84.32 	former participants in the allocation of the surplus, the board of trustees shall must modify 
84.33 	the method for allocating the surplus to take into account the former participants.
85.1 	(e) (f) Any amount of surplus transferred to the affiliated municipality under this 
85.2 	subdivision may only be used for the purposes described in section 424A.08, paragraph (a) 
85.3 	or (b).

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

85.5 	Sec. 14. Minnesota Statutes 2024, section 424B.22, subdivision 8, is amended to read:
85.6 		Subd. 8.Immediate distribution of retirement benefits and payment of all other 
85.7 	obligations. (a) The board of trustees shall must liquidate the assets of the special fund and 
85.8 	pay retirement benefits and administrative expenses under the retirement plan within 210 
85.9 	days after the effective date of the termination of the retirement plan.
85.10 	(b) If the retirement plan is a defined benefit plan that pays lump-sum benefits or a 
85.11 	defined contribution plan, without regard to whether the participant has attained age 50, the 
85.12 	board of trustees must offer each participant and other benefit recipient shall be permitted
85.13 	the option to elect an immediate distribution or a direct rollover of the participant's benefit 
85.14 	to an eligible retirement plan as permitted under section 356.633, subdivisions 1 and 2, if 
85.15 	the benefit is an eligible rollover distribution as defined in section 356.633, subdivision 1, 
85.16 	paragraph (d).
85.17 	(c) If the retirement plan is a defined benefit plan that pays monthly pension benefits, 
85.18 	the board of trustees shall must, at the election of the participant or other benefit recipient, 
85.19 	purchase an annuity contract under section 424A.015, subdivision 3, naming the participant 
85.20 	or other benefit recipient, as applicable, as the insured or distribute a lump-sum amount that 
85.21 	is equal to the present value of the monthly pension benefits to which the participant or 
85.22 	other benefit recipient is entitled. If an annuity is elected by the participant or other benefit 
85.23 	recipient, the annuity shall must provide for commencement at a date elected by the insured, 
85.24 	to be paid as an annuity for the life of the insured. The board of trustees must transfer legal 
85.25 	title to the annuity contract shall be transferred to the insured. If the participant or other 
85.26 	benefit recipient elects a lump sum is elected amount, the board of trustees must offer the 
85.27 	participant or other benefit recipient the option under paragraph (b) to take an immediate 
85.28 	distribution or a direct rollover shall apply.
85.29 	(d) The board of trustees shall must complete the distribution of all assets of the special 
85.30 	fund by making any remaining distributions or transfers as required under subdivision 9 on 
85.31 	behalf of participants or other benefit recipients who cannot be located or are unresponsive
85.32 	nonresponsive and paying any remaining administrative expenses related to the termination 
85.33 	of the plan.

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

86.2 	Sec. 15. Minnesota Statutes 2024, section 424B.22, subdivision 9, as amended by Laws 
86.3 	2026, chapter 56, section 36, is amended to read:
86.4 		Subd. 9.Missing or nonresponsive participants. (a) For purposes of this subdivision, 
86.5 	the terms defined in this subdivision have the meanings given them.
86.6 	(b) "Retirement benefit" means:
86.7 	(1) the participant's account balance if the retirement plan is a defined contribution plan;
86.8 	(2) the participant's lump-sum benefit if the retirement plan is a defined benefit plan that 
86.9 	pays a lump sum; or
86.10 	(3) an amount equal to the present value of the participant's benefit if the retirement plan 
86.11 	is a defined benefit plan that pays a monthly annuity.
86.12 	(c) "Individual retirement account" means an account that satisfies the requirements of 
86.13 	section 408(a) of the Internal Revenue Code which is established by an officer of the relief 
86.14 	association in the name of the participant or other benefit recipient at a financial institution 
86.15 	insured federally or by an approved credit union guaranty corporation.
86.16 	(d) (a) If the board of trustees cannot locate a participant or other benefit recipient, the 
86.17 	board of trustees shall must make a diligent effort to obtain a current address or other contact 
86.18 	information as follows:
86.19 	(1) send a notice to the address on file for the participant or other benefit recipient using 
86.20 	certified mail;
86.21 	(2) check with the Minnesota State Fire Department Association, the municipality, and 
86.22 	any other employer of the participant;
86.23 	(3) check with the participant's designated beneficiary on file with the relief association; 
86.24 	and
86.25 	(4) use one or more of the Internet search tools that are free of charge.
86.26 	(e) The board of trustees shall (b) The board of trustees must dispose of the retirement 
86.27 	benefit of a participant or other benefit recipient under clause (1) or (2) if the board of 
86.28 	trustees is unable to locate the participant or other benefit recipient after taking the actions 
86.29 	described in paragraph (a) or the participant or other benefit recipient does not make an 
86.30 	election of a distribution or direct rollover under subdivision 8, paragraph (b), or an annuity 
87.1 	or lump sum distribution or direct rollover under subdivision 8, paragraph (c). The board 
87.2 	of trustees must:
87.3 	(1) transfer the retirement benefit to an individual retirement account that satisfies the 
87.4 	requirements of section 408(a) of the Internal Revenue Code and is established by an officer 
87.5 	of the relief association in the name of the participant or other benefit recipient at a federally 
87.6 	insured financial institution; or
87.7 	(2) consider the retirement benefit abandoned and deposit funds in the amount of the 
87.8 	retirement benefit with the commissioner of commerce under chapter 345, notwithstanding 
87.9 	any laws to the contrary, including section 345.381, if the board of trustees is unable to 
87.10 	locate the participant or other benefit recipient after taking the actions described in paragraph 
87.11 	(d) or the participant or other benefit recipient does not elect to receive or rollover a 
87.12 	retirement benefit to which the participant or other benefit recipient is entitled.
87.13 	(c) For the purpose of this subdivision, a retirement benefit that is a monthly pension or 
87.14 	annuity may be disposed of under paragraph (b) by converting the monthly pension or 
87.15 	annuity to a lump sum that is equal to the present value of the monthly pension or annuity 
87.16 	to which the participant or other benefit recipient is entitled.

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

87.18 	Sec. 16. TRANSFER OF MAPLE PLAIN FIRE DEPARTMENT RECORDS, 
87.19 	ASSETS, AND LIABILITIES FROM THE STATEWIDE VOLUNTEER 
87.20 	FIREFIGHTER PLAN.
87.21 	(a) No later than 60 days after the effective date, the executive director of the Public 
87.22 	Employees Retirement Plan must transfer the records, assets, and liabilities of the Maple 
87.23 	Plain fire department to the Maple Plain Fire Relief Association.
87.24 	(b) Minnesota Statutes, section 353G.17, applies to the transfer under paragraph (a) 
87.25 	except as modified by clauses (1) to (9) of this paragraph.
87.26 	(1) Subdivision 1, paragraph (b), clause (3), does not apply.
87.27 	(2) Subdivision 1, paragraphs (c) and (d), do not apply.
87.28 	(3) Subdivision 2, paragraph (a), clause (2), does not apply.
87.29 	(4) Subdivision 2, paragraphs (b) and (c), do not apply.
87.30 	(5) Subdivision 3, paragraph (a), is revised to require that the vote be conducted by the 
87.31 	board of trustees of the Maple Plain Fire Relief Association, rather than the executive director 
87.32 	of the Public Employees Retirement Association, and that the vote by members of the Maple 
88.1 	Plain Fire Relief Association must occur no earlier than four months before the effective 
88.2 	date and no later than 30 days after the effective date.
88.3 	(6) Subdivision 3, paragraphs (c) to (e), do not apply.
88.4 	(7) Subdivision 4, paragraph (a), is revised to require the Statewide Volunteer Firefighter 
88.5 	Plan to make the transfer described in paragraph (a) upon completion of the actions required 
88.6 	under Minnesota Statutes, section 353G.17, subdivisions 1 to 3, as revised by this section, 
88.7 	and to replace "as of the effective date identified in the notice under subdivision 1," with 
88.8 	"no later than 60 days after the effective date."
88.9 	(8) Subdivision 5, paragraph (d), is revised to add at the end of paragraph (d): "For the 
88.10 	purpose of this section, the "value" of a firefighter's benefit means the amount determined 
88.11 	by multiplying the firefighter's years of service by the benefit level applicable to the 
88.12 	firefighter as determined under Minnesota Statutes, section 424B.22."
88.13 	(9) Subdivision 6 is revised to delete the phrase "or the requirements of subdivision 2, 
88.14 	paragraph (b), are not met."

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

88.16 	Sec. 17. PENSION PAYMENTS AND PLAN TERMINATION.
 88.17 	Upon completion of the transfer of records, assets, and liabilities under section 14 to the 
88.18 	Maple Plain Fire Relief Association, the Maple Plain Fire Relief Association must make 
88.19 	pension benefit payments in accordance with Minnesota Statutes, section 424B.22, as 
88.20 	amended and in effect on the date payments are made, and subsequently terminate and 
88.21 	dissolve the relief association in accordance with Minnesota law.

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

88.23 	Sec. 18. PAYMENT OF SUPPLEMENTAL BENEFITS.
 88.24 	(a) The city of Maple Plain is authorized, but not required, to pay supplemental benefits 
88.25 	due under Minnesota Statutes, section 424A.10, to each qualified recipient or survivor, as 
88.26 	defined in Minnesota Statutes, section 424A.10, of the Maple Plain Fire Relief Association. 
88.27 	If the city of Maple Plain pays supplemental benefits, the city is eligible for reimbursement 
88.28 	from the commissioner of revenue under Minnesota Statutes, section 424A.10, for the 
88.29 	amount of supplemental benefits paid.
88.30 	(b) If the city of Maple Plain pays supplemental benefits due under Minnesota Statutes, 
88.31 	section 424A.10, as authorized by paragraph (a), the Maple Plain Fire Relief Association 
89.1 	is deemed to have satisfied the requirement under Minnesota Statutes, section 424A.10, to 
89.2 	pay supplemental benefits.

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

89.4 	Sec. 19. REPEALER.
 89.5 	Minnesota Statutes 2024, section 424A.01, subdivision 6, is repealed.

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

89.7 	ARTICLE 8
89.8 	ALL PUBLIC PENSION PLANS

89.9 	Section 1. Minnesota Statutes 2024, section 43A.346, subdivision 8, is amended to read:
89.10 		Subd. 8.No Service credit; contributions. (a) Notwithstanding any law to the contrary, 
89.11 	a person may not earn service credit in the Minnesota State Retirement System or the Public 
89.12 	Employees Retirement Association for employment covered under this section, and employer 
89.13 	contributions and payroll deductions for the retirement fund must not be made based on 
89.14 	earnings of a person working under this section.
89.15 	(b) A person employed in a postretirement option position must not be required to make 
89.16 	payroll deduction contributions to the Minnesota State Retirement System or the Public 
89.17 	Employees Retirement Association during the period of postretirement option employment.
89.18 	(c) The employer of a person in a postretirement option position who would otherwise 
89.19 	be covered by the general state employees retirement plan of the Minnesota State Retirement 
89.20 	System must make employer contributions to the general state employees retirement fund 
89.21 	as specified in section 352.04, subdivision 3, during the period of postretirement option 
89.22 	employment. The employer of the person in a postretirement option position who would 
89.23 	otherwise be covered by the general employees retirement plan of the Public Employees 
89.24 	Retirement Association must make employer and additional employer contributions to the 
89.25 	general employees retirement fund as specified in section 353.27, subdivisions 3 and 3a, 
89.26 	during the period of postretirement option employment.
89.27 	(d) No change shall may be made to a monthly annuity or retirement allowance based 
89.28 	on employment under this section.

89.29 	EFFECTIVE DATE. This section is effective on the first day of the payroll period 
89.30 	beginning on or after January 1, 2027.

90.1 	Sec. 2. Minnesota Statutes 2024, section 43A.346, subdivision 10, is amended to read:
90.2 		Subd. 10.Subsequent employment. If a person has been in a postretirement option 
90.3 	position and accepts any other position in state or Metropolitan Council-paid service, in the 
90.4 	subsequent state or Metropolitan Council-paid employment the person may not earn service 
90.5 	credit in the Minnesota State Retirement System or Public Employees Retirement 
90.6 	Association, no employer contributions or payroll deductions for the retirement fund shall
90.7 	may be made, and the provisions of section 352.115, subdivision 10, or section353.37, 
90.8 	shall apply.

90.9 	EFFECTIVE DATE. This section is effective on the first day of the payroll period 
90.10 	beginning on or after January 1, 2027.

90.11 	Sec. 3. Minnesota Statutes 2024, section 352.01, subdivision 13, is amended to read:
90.12 		Subd. 13.Salary. (a) Subject to the limitations of section 356.611, "salary" means wages, 
90.13 	or other periodic compensation, paid to an employee before deductions for deferred 
90.14 	compensation, supplemental retirement plans, or other voluntary salary reduction programs.
90.15 	(b) "Salary" does not include:
90.16 	(1) lump-sum sick leave payments;
90.17 	(2) severance payments;
90.18 	(3) lump-sum annual leave payments and overtime payments made at the time of 
90.19 	separation from state service;
90.20 	(4) payments in lieu of any employer-paid group insurance coverage, including the 
90.21 	difference between single and family rates that may be paid to an employee with single 
90.22 	coverage;
90.23 	(5) payments made as an employer-paid fringe benefit;
90.24 	(6) workers' compensation payments;
90.25 	(7) employer contributions to a deferred compensation or tax-sheltered annuity program;
90.26 	and
90.27 	(8) amounts contributed under a benevolent vacation and sick leave donation program.; 
90.28 	and
90.29 	(9) payments from the family and medical benefit insurance account for Minnesota paid 
90.30 	leave under chapter 268B.
91.1 	(c) Amounts paid to an employee by the employer through a grievance proceeding or a 
91.2 	legal settlement are salary only if the grievance or settlement agreement is received by the 
91.3 	executive director no fewer than 14 days before payment is made and the executive director 
91.4 	determines that:
91.5 	(1) the grievance or settlement agreement describes with sufficient specificity the period 
91.6 	or periods of time worked or not worked by the employee for which the amounts are 
91.7 	compensation; and
91.8 	(2) the amounts are salary as defined in paragraph (a) and the determination is consistent 
91.9 	with prior determinations.

91.10 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2026.

91.11 	Sec. 4. Minnesota Statutes 2024, section 352.115, subdivision 10, is amended to read:
91.12 		Subd. 10.Reemployment of annuitant. (a) Except for salary or wages received as a 
91.13 	temporary employee of the legislature during a legislative session, if any retired employee 
91.14 	again becomes entitled to receive salary or wages from any employer who employs state 
91.15 	employees as that term is defined in section 352.01, subdivision 2, in a position covered by 
91.16 	this chapter, the annuity or retirement allowance must cease the first of the month following 
91.17 	the month that the retired employee has earned an amount equal to the annual maximum 
91.18 	earnings allowable for that age for the continued receipt of full benefit amounts monthly 
91.19 	under the federal old age, survivors, and disability insurance program as set by the secretary 
91.20 	of health and human services under United States Code, title 42, section 403, in any calendar 
91.21 	year. If the retired employee has not yet reached the minimum age for the receipt of Social 
91.22 	Security benefits, the maximum earnings for the retired employee are equal to the annual 
91.23 	maximum earnings allowable for the minimum age for the receipt of Social Security benefits.
91.24 	(b) The balance of the annual retirement annuity after cessation must be handled or 
91.25 	disposed of as provided in section 356.47.
91.26 	(c) The annuity must be resumed the first of the month following the month that state 
91.27 	service ends, or, if the retired employee is still employed at the beginning of the next calendar 
91.28 	year, at the beginning of that calendar year, and payment must again end when the retired 
91.29 	employee has earned the applicable reemployment earnings maximum specified in this 
91.30 	subdivision. If the retired employee is granted a sick leave without pay, but not otherwise, 
91.31 	the annuity or retirement allowance must be resumed during the period of sick leave.
91.32 	(d) No payroll deductions for the retirement fund may be made from the earnings of a 
91.33 	reemployed retired employee.
92.1 	(e) No change may be made in the monthly amount of an annuity or retirement allowance 
92.2 	because of the reemployment of an annuitant.
92.3 	(f) If a reemployed annuitant whose annuity is suspended under paragraph (a) is having 
92.4 	insurance premium amounts withheld under section 356.87, subdivision 2, insurance premium 
92.5 	amounts must continue to be withheld and transferred from the suspended portion of the 
92.6 	annuity. The balance of the annual retirement annuity after cessation, after deduction of the 
92.7 	insurance premium amounts, must be treated as specified in paragraph (b).
92.8 	(g) If a reemployed annuitant whose annuity is suspended under paragraph (a) has a 
92.9 	former spouse receiving a portion of the annuity allowable under section 518.58, subdivision 
92.10 	1, the portion payable to the former spouse must continue to be paid.
92.11 	(h) During the period of reemployment, the employer of a reemployed annuitant must 
92.12 	make employer contributions. If the reemployed annuitant is working in a position that 
92.13 	would otherwise be covered by the general state employees retirement plan, the employer 
92.14 	must make employer contributions as specified in section 352.04, subdivision 3. If the 
92.15 	reemployed annuitant is working in a position that would otherwise be covered by the 
92.16 	correctional state employees retirement plan, the employer must make employer and 
92.17 	supplemental contributions as specified in section 352.92, subdivisions 2 and 2a.

92.18 	EFFECTIVE DATE. This section is effective on the first day of the payroll period 
92.19 	beginning on or after January 1, 2027.

92.20 	Sec. 5. Minnesota Statutes 2024, section 352.1155, subdivision 3, is amended to read:
92.21 		Subd. 3.Service credit prohibition; contributions. (a) Notwithstanding any law to the 
92.22 	contrary, a person eligible under this section may not, based on employment to which the 
92.23 	waiver in this section applies, earn further service credit in a Minnesota public defined 
92.24 	benefit plan and is not eligible to participate in a Minnesota public defined contribution 
92.25 	plan, other than a firefighter relief association governed by chapter 424A or the statewide 
92.26 	volunteer firefighter plan governed by chapter 353G. No employer or employee contribution 
92.27 	to any of these plans may be made on behalf of such a person.
92.28 	(b) A person eligible under this section must not be required to make employee 
92.29 	contributions as specified in section 352.04, subdivision 2, during the period of 
92.30 	reemployment.
92.31 	(c) The employer of a person eligible under this section must make employer contributions 
92.32 	as specified in section 352.04, subdivision 3, during the period of the person's reemployment.

93.1 	EFFECTIVE DATE. This section is effective on the first day of the payroll period 
93.2 	beginning on or after January 1, 2027.

93.3 	Sec. 6. Minnesota Statutes 2024, section 353.01, subdivision 10, is amended to read:
93.4 		Subd. 10.Salary. (a) Subject to the limitations of section 356.611, "salary" means:
93.5 	(1) the wages or periodic compensation payable to a public employee by the employing 
93.6 	governmental subdivision before:
93.7 	(i) employee retirement deductions that are designated as picked-up contributions under 
93.8 	section 356.62;
93.9 	(ii) any employee-elected deductions for deferred compensation, supplemental retirement 
93.10 	plans, or other voluntary salary reduction programs that would have otherwise been available 
93.11 	as a cash payment to the employee; and
93.12 	(iii) employee deductions for contributions to a supplemental plan or to a governmental 
93.13 	trust established under section 356.24, subdivision 1, clause (7), to save for postretirement 
93.14 	health care expenses, unless otherwise excluded under paragraph (b);
93.15 	(2) for a public employee who is covered by a supplemental retirement plan under section 
93.16 	356.24, subdivision 1, clause (8), (9), (10), or (12), the employer contributions to the 
93.17 	applicable supplemental retirement plan when an agreement between the parties establishes 
93.18 	that the contributions will either result in a mandatory reduction of employees' wages through 
93.19 	payroll withholdings, or be made in lieu of an amount that would otherwise be paid as 
93.20 	wages;
93.21 	(3) a payment from a public employer through a grievance proceeding, settlement, or 
93.22 	court order that is attached to a specific earnings period in which the employee's regular 
93.23 	salary was not earned or paid to the member due to a suspension or a period of involuntary 
93.24 	termination that is not a wrongful discharge under section 356.50; provided the amount is 
93.25 	not less than the equivalent of the average of the hourly base salary rate in effect during the 
93.26 	last six months of allowable service prior to the suspension or period of involuntary 
93.27 	termination, plus any applicable increases awarded during the period that would have been 
93.28 	paid under a collective bargaining agreement or personnel policy but for the suspension or 
93.29 	involuntary termination, multiplied by the average number of regular hours for which the 
93.30 	employee was compensated during the six months of allowable service prior to the suspension 
93.31 	or period of involuntary termination, but not to exceed the compensation that the public 
93.32 	employee would have earned if regularly employed during the applicable period;
94.1 	(4) compensation paid during an authorized leave of absence, other than an authorized 
94.2 	medical leave of absence, as long as the compensation paid during a pay period is not less 
94.3 	than the lesser of:; and
94.4 	(i) the product of the average hourly base salary rate in effect during the six months of 
94.5 	allowable service immediately preceding the leave, multiplied by the average number of 
94.6 	regular hours for which the employee was compensated each pay period during the six 
94.7 	months of allowable service immediately preceding the leave of absence; or
94.8 	(ii) compensation equal to the value of the employee's total available accrued leave 
94.9 	hours;
94.10 	(5) compensation paid during an authorized medical leave of absence, other than a 
94.11 	workers' compensation leave, as long as the compensation paid during a pay period is not 
94.12 	less than the lesser of:
94.13 	(i) the product of one-half and the average hourly base salary rate in effect during the 
94.14 	six months of allowable service immediately preceding the leave of absence; or
94.15 	(ii) compensation equal to the value of the employee's total available accrued leave 
94.16 	hours; and
94.17 	(6) (5) for a public employee who receives performance or merit bonus payment under 
94.18 	a written compensation plan, policy, or collective bargaining agreement in addition to regular 
94.19 	salary or in lieu of regular salary increases, the compensation paid to the employee for 
94.20 	attaining or exceeding performance goals, duties, or measures during a specified period of 
94.21 	employment.
94.22 	(b) Salary does not mean:
94.23 	(1) fees paid to district court reporters;
94.24 	(2) unused annual leave, vacation, or sick leave payments, in the form of lump-sum or 
94.25 	periodic payments;
94.26 	(3) for the donor, payment to another person of the value of hours donated under a 
94.27 	benevolent vacation, personal, or sick leave donation program;
94.28 	(4) any form of severance or retirement incentive payments;
94.29 	(5) an allowance payment or per diem payments for or reimbursement of expenses;
94.30 	(6) lump-sum settlements not attached to a specific earnings period;
95.1 	(7) workers' compensation payments, payments from the family and medical benefit 
95.2 	insurance account for Minnesota paid leave under chapter 268B, or disability insurance 
95.3 	payments, including payments from employer self-insurance arrangements;
95.4 	(8) employer-paid amounts used by an employee toward the cost of insurance coverage, 
95.5 	flexible spending accounts, cafeteria plans, health care expense accounts, day care expenses, 
95.6 	or any payments in lieu of any employer-paid group insurance coverage, including the 
95.7 	difference between single and family rates that may be paid to a member with single coverage 
95.8 	and certain amounts determined by the executive director to be ineligible;
95.9 	(9) employer-paid fringe benefits, including, but not limited to:
95.10 	(i) employer-paid premiums or supplemental contributions for employees for all types 
95.11 	of insurance;
95.12 	(ii) membership dues or fees for the use of fitness or recreational facilities;
95.13 	(iii) incentive payments or cash awards relating to a wellness program;
95.14 	(iv) the value of any nonmonetary benefits;
95.15 	(v) any form of payment made in lieu of an employer-paid fringe benefit;
95.16 	(vi) an employer-paid amount made to a deferred compensation or tax-sheltered annuity 
95.17 	program; and
95.18 	(vii) any amount paid by the employer as a supplement to salary, either as a lump-sum 
95.19 	amount or a fixed or matching amount paid on a recurring basis, that is not available to the 
95.20 	employee as cash;
95.21 	(10) the amount equal to that which the employing governmental subdivision would 
95.22 	otherwise pay toward single or family insurance coverage for a covered employee when, 
95.23 	through a contract or agreement with some but not all employees, the employer:
95.24 	(i) discontinues, or for new hires does not provide, payment toward the cost of the 
95.25 	employee's selected insurance coverages under a group plan offered by the employer;
95.26 	(ii) makes the employee solely responsible for all contributions toward the cost of the 
95.27 	employee's selected insurance coverages under a group plan offered by the employer, 
95.28 	including any amount the employer makes toward other employees' selected insurance 
95.29 	coverages under a group plan offered by the employer; and
95.30 	(iii) provides increased salary rates for employees who do not have any employer-paid 
95.31 	group insurance coverages;
96.1 	(11) except as provided in section 353.86 or353.87, compensation of any kind paid to 
96.2 	volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision 
96.3 	35 or 36;
96.4 	(12) the amount of compensation that exceeds the limitation provided in section 356.611;
96.5 	(13) amounts paid by a federal or state grant for which the grant specifically prohibits 
96.6 	grant proceeds from being used to make pension plan contributions, unless the contributions 
96.7 	to the plan are made from sources other than the federal or state grant; and
96.8 	(14) bonus pay that is not performance or merit pay under paragraph (a), clause (6) (5).
96.9 	(c) Amounts, other than those provided under paragraph (a), clause (3), provided to an 
96.10 	employee by the employer through a grievance proceeding, a court order, or a legal settlement 
96.11 	are salary only if the settlement or court order is reviewed by the executive director and the 
96.12 	amounts are determined by the executive director to be consistent with paragraph (a) and 
96.13 	prior determinations.

96.14 	EFFECTIVE DATE. The amendments to paragraphs (a), clauses (4) and (5), and (b), 
96.15 	clause (11), are effective July 1, 2026. The amendment to paragraph (b), clause (7), is 
96.16 	effective retroactively from January 1, 2026.

96.17 	Sec. 7. Minnesota Statutes 2024, section 353.37, subdivision 5, is amended to read:
96.18 		Subd. 5.Effect on annuity; contributions. (a) Except as provided under this section, 
96.19 	public service performed by an annuitant described in subdivision 1, paragraph (a), 
96.20 	subsequent to retirement from the general employees retirement plan, the public employees 
96.21 	police and fire retirement plan, or the local government correctional employees retirement 
96.22 	plan does not increase or decrease the amount of an annuity.
96.23 	(b) The annuitant shall must not make any further contributions to a defined benefit plan 
96.24 	administered by the association by reason of this subsequent public service.
96.25 	(c) During the period of reemployment, the employer of a reemployed annuitant must 
96.26 	make employer contributions. If the reemployed annuitant is working in a position that 
96.27 	would otherwise be covered by the general employees retirement plan, the employer must 
96.28 	make employer and additional employer contributions as specified in section 353.27, 
96.29 	subdivisions 3 and 3a. If the reemployed annuitant is working in a position that would 
96.30 	otherwise be covered by the public employees police and fire retirement plan, the employer 
96.31 	must make employer contributions as specified in section 353.65, subdivision 3. If the 
96.32 	reemployed annuitant is working in a position that would otherwise be covered by the local 
97.1 	government correctional service retirement plan, the employer must make employer 
97.2 	contributions as specified in section 353E.03, subdivision 2.

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

97.4 	Sec. 8. Minnesota Statutes 2024, section 353.371, subdivision 6, is amended to read:
97.5 		Subd. 6.No Service credit; contributions. (a) Notwithstanding any law to the contrary, 
97.6 	a person may not earn allowable service in the general employees retirement plan of the 
97.7 	Public Employees Retirement Association for employment covered under this section, and 
97.8 	employer contributions and.
97.9 	(b) Payroll deductions for the retirement fund must not be made based on earnings of a 
97.10 	person working under an agreement covered by this section.
97.11 	(c) The employer of a person working under an agreement covered by this section must 
97.12 	make employer and additional employer contributions to the fund as specified in section 
97.13 	353.27, subdivisions 3 and 3a, during the term of employment under the phased retirement 
97.14 	agreement or renewed phased retirement agreement.
97.15 	(d) No change may be made to a monthly annuity or retirement allowance based on 
97.16 	employment under this section.
97.17 	(b) (e) The governmental subdivision shall must report to the executive director the 
97.18 	salary earned by an employee in a phased retirement position. The report must include the 
97.19 	number of compensated hours the employee worked and must be made on a pay period 
97.20 	basis in a manner prescribed by the executive director. Reports must be submitted no later 
97.21 	than 14 calendar days following the last day of each pay period.

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

97.23 	Sec. 9. Minnesota Statutes 2024, section 353.371, subdivision 7, is amended to read:
97.24 		Subd. 7.Termination and subsequent employment. (a) Upon termination of 
97.25 	employment under a phased retirement agreement, the governmental subdivision and 
97.26 	employee must inform the executive director, in a manner prescribed by the executive 
97.27 	director, of the effective date of the employee's termination of public service. The termination 
97.28 	from public service must meet the termination and length of separation requirements under 
97.29 	section 353.01, subdivisions 11a and 28.
97.30 	(b) If a person previously employed under a phased retirement agreement subsequently 
97.31 	accepts employment with any other governmental subdivision, the person may not earn 
98.1 	allowable service in the general employees retirement plan of the Public Employees 
98.2 	Retirement Association, no employer contributions or payroll deductions for the retirement 
98.3 	fund may be made, and the provisions of section 353.37 apply to the subsequent employment.

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

98.5 	Sec. 10. Minnesota Statutes 2024, section 354.05, subdivision 35, is amended to read:
98.6 		Subd. 35.Salary. (a) Subject to the limitations of section 356.611, "salary" means the 
98.7 	periodic compensation, upon which member contributions are required before deductions 
98.8 	for deferred compensation, supplemental retirement plans, or other voluntary salary reduction 
98.9 	programs.
98.10 	(b) "Salary" does not mean:
98.11 	(1) lump-sum annual leave payments;
98.12 	(2) lump-sum wellness and sick leave payments;
98.13 	(3) employer-paid amounts used by an employee toward the cost of insurance coverage, 
98.14 	employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health care 
98.15 	expense accounts, day care expenses, or any payments in lieu of any employer-paid group 
98.16 	insurance coverage, including the difference between single and family rates that may be 
98.17 	paid to a member with single coverage and certain amounts determined by the executive 
98.18 	director to be ineligible;
98.19 	(4) any form of payment made in lieu of any other employer-paid fringe benefit or 
98.20 	expense;
98.21 	(5) any form of severance payments;
98.22 	(6) workers' compensation payments;
98.23 	(7) disability insurance payments, including self-insured disability payments;
98.24 	(8) payments to school principals and all other administrators for services that are in 
98.25 	addition to the normal work year contract if these additional services are performed on an 
98.26 	extended duty day, Saturday, Sunday, holiday, annual leave day, sick leave day, or any 
98.27 	other nonduty day;
98.28 	(9) payments under section 356.24, subdivision 1, clause (4); and
98.29 	(10) payments made under section 122A.40, subdivision 12, except for payments for 
98.30 	sick leave that are accumulated under the provisions of a uniform school district policy that 
98.31 	applies equally to all similarly situated persons in the district.; and
99.1 	(11) payments from the family and medical benefit insurance account for Minnesota 
99.2 	paid leave under chapter 268B.
99.3 	(c) Amounts provided to an employee by the employer through a grievance proceeding 
99.4 	or a legal settlement are salary only if the settlement is reviewed by the executive director 
99.5 	and the amounts are determined by the executive director to be consistent with paragraph 
99.6 	(a) and prior determinations.

99.7 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2026.

99.8 	Sec. 11. Minnesota Statutes 2024, section 354.44, subdivision 5, is amended to read:
99.9 		Subd. 5.Resumption of teaching service after retirement. (a) Any person who retired 
99.10 	under the provisions of this chapter and has thereafter resumed teaching in any employer 
99.11 	unit to which this chapter applies is eligible to continue to receive payments in accordance 
99.12 	with the annuity except that all or a portion of the annuity payments must be deferred during 
99.13 	the calendar year immediately following the fiscal year in which the person's salary from 
99.14 	the teaching service is in an amount greater than $46,000. The amount of the annuity deferral 
99.15 	is one-half of the salary amount in excess of $46,000 and must be deducted from the annuity 
99.16 	payable for the calendar year immediately following the fiscal year in which the excess 
99.17 	amount was earned.
99.18 	(b) If the person is retired for only a fractional part of the fiscal year during the initial 
99.19 	year of retirement, the maximum reemployment salary exempt from triggering a deferral 
99.20 	as specified in this subdivision must be prorated for that fiscal year.
99.21 	(c) After a person has reached the Social Security normal retirement age, no deferral 
99.22 	requirement is applicable regardless of the amount of salary.
99.23 	(d) The amount of the retirement annuity deferral must be handled or disposed of as 
99.24 	provided in section 356.47.
99.25 	(e) For the purpose purposes of this subdivision, salary from teaching service includes 
99.26 	all salary or income earned as a teacher as defined in section 354.05, subdivision 2, paragraph 
99.27 	(a), clause (1). Salary from teaching service also includes, but is not limited to:
99.28 	(1) all income for services performed as a consultant, independent contractor, or 
99.29 	third-party supplier, or as an employee of a consultant, independent contractor, or third-party 
99.30 	supplier, to an employer unit covered by the provisions of this chapter; and
99.31 	(2) the greater of either the income received or an amount based on the rate paid with 
99.32 	respect to an administrative position, consultant, independent contractor, or third-party 
100.1 	supplier, or as an employee of a consultant, independent contractor, or third-party supplier, 
100.2 	in an employer unit with approximately the same number of pupils and at the same level as 
100.3 	the position occupied by the person who resumes teaching service.
100.4 	(f) Notwithstanding other paragraphs of this subdivision, if the reemployed annuitant 
100.5 	has a former spouse receiving a portion of the annuity under section 518.58, subdivision 1, 
100.6 	the portion payable to the former spouse must not be deferred.
100.7 	(g) During the period of reemployment, the employer of a reemployed annuitant must 
100.8 	make regular and, if applicable, additional employer contributions as specified in section 
100.9 	354.42, subdivision 3.

100.10 	EFFECTIVE DATE. This section is effective on the first day of the payroll period 
100.11 	beginning on or after July 1, 2026.

100.12 	Sec. 12. Minnesota Statutes 2024, section 354.444, subdivision 5, is amended to read:
100.13 		Subd. 5.No Service credit or contribution; contributions. Notwithstanding any law 
100.14 	to the contrary,:
100.15 	(1) an eligible person under this section may not, based on employment to which this 
100.16 	section applies, contribute to or earn further service credit in the Teachers Retirement
100.17 	association.; and
100.18 	(2) the employer of an eligible person under this section must make regular and, if 
100.19 	applicable, additional employer contributions as specified in section 354.42, subdivision 3, 
100.20 	during the period of employment to which this section applies.

100.21 	EFFECTIVE DATE. This section is effective on the first day of the payroll period 
100.22 	beginning on or after July 1, 2026.

100.23 	Sec. 13. Minnesota Statutes 2024, section 354.445, is amended to read:
100.24 	354.445 NO ANNUITY REDUCTION.
100.25 	(a) The annuity reduction provisions of section 354.44, subdivision 5, do not apply to a 
100.26 	person who:
100.27 	(1) retires from the Minnesota State Colleges and Universities system with at least ten 
100.28 	years of combined service credit in a system under the jurisdiction of the Board of Trustees 
100.29 	of the Minnesota State Colleges and Universities;
100.30 	(2) was employed on a full-time basis immediately preceding retirement as a faculty 
100.31 	member or as an unclassified administrator in that system;
101.1 	(3) was not a recipient of an early retirement incentive under section 136F.481;
101.2 	(4) begins drawing an annuity from the Teachers Retirement Association; and
101.3 	(5) returns to work on not less than a one-third time basis and not more than a two-thirds 
101.4 	time basis in the system from which the person retired under an agreement in which the 
101.5 	person may not earn a salary of more than $62,000 in a fiscal year through employment 
101.6 	after retirement in the system from which the person retired.
101.7 	(b) Initial participation, the amount of time worked, and the duration of participation 
101.8 	under this section must be mutually agreed upon by the president of the institution where 
101.9 	the person returns to work and the employee. The president may require up to one-year 
101.10 	notice of intent to participate in the program as a condition of participation under this section. 
101.11 	The president shall determine the time of year the employee shall work. The employer or 
101.12 	the president may not require a person to waive any rights under a collective bargaining 
101.13 	agreement as a condition of participation under this section.
101.14 	(c) Notwithstanding any law to the contrary, a person eligible under paragraphs (a) and 
101.15 	(b) may not, based on employment to which the waiver in this section applies, earn further 
101.16 	service credit in a Minnesota public defined benefit plan and is not eligible to participate 
101.17 	in a Minnesota public defined contribution plan, other than a volunteer fire firefighter relief 
101.18 	association plan governed by chapter 424A or the statewide volunteer firefighter plan 
101.19 	governed by chapter 353G. No employer or employee contribution to any of these plans 
101.20 	may be made on behalf of such a person.
101.21 	(d) A person eligible under paragraphs (a) and (b) must not be required to make employee 
101.22 	contributions as specified in section 354.42, subdivision 2, during the period of 
101.23 	reemployment.
101.24 	(e) The employer of a person eligible under paragraphs (a) and (b) must make employer 
101.25 	contributions as specified in section 354.42, subdivision 3, during the period of the person's 
101.26 	reemployment.
101.27 	(d) (f) For a person eligible under paragraphs (a) and (b) who earns more than $62,000 
101.28 	in a fiscal year through employment after retirement due to employment by the Minnesota 
101.29 	State Colleges and Universities system, the annuity reduction provisions of section 354.44, 
101.30 	subdivision 5, apply only to income over $62,000.
101.31 	(e) (g) A person who returns to work under this section is a member of the appropriate 
101.32 	bargaining unit and is covered by the appropriate collective bargaining contract. Except as 
102.1 	provided in this section, the person's coverage is subject to any part of the contract limiting 
102.2 	rights of part-time employees.

102.3 	EFFECTIVE DATE. This section is effective on the first day of the payroll period 
102.4 	beginning on or after July 1, 2026.

102.5 	Sec. 14. Minnesota Statutes 2024, section 354A.011, subdivision 24, is amended to read:
102.6 		Subd. 24.Salary; covered salary. (a) Subject to the limitations of section 356.611, 
102.7 	"salary" or "covered salary" means the entire compensation, upon which member 
102.8 	contributions are required and made, that is paid to a teacher before deductions for deferred 
102.9 	compensation, supplemental retirement plans, or other voluntary salary reduction programs.
102.10 	(b) "Salary" does not mean:
102.11 	(1) lump-sum annual leave payments;
102.12 	(2) lump-sum wellness and sick leave payments;
102.13 	(3) employer-paid amounts used by an employee toward the cost of insurance coverage, 
102.14 	employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health care 
102.15 	expense accounts, day care expenses, or any payments in lieu of any employer-paid group 
102.16 	insurance coverage, including the difference between single and family rates that may be 
102.17 	paid to a member with single coverage, and certain amounts determined by the executive 
102.18 	secretary or director to be ineligible;
102.19 	(4) any form of payment that is made in lieu of any other employer-paid fringe benefit 
102.20 	or expense;
102.21 	(5) any form of severance payments;
102.22 	(6) workers' compensation payments;
102.23 	(7) disability insurance payments, including self-insured disability payments;
102.24 	(8) payments to school principals and all other administrators for services that are in 
102.25 	addition to the normal work year contract if these additional services are performed on an 
102.26 	extended duty day, Saturday, Sunday, holiday, annual leave day, sick leave day, or any 
102.27 	other nonduty day;
102.28 	(9) payments under section 356.24, subdivision 1, clause (4)(ii); and
102.29 	(10) payments made under section 122A.40, subdivision 12, except for payments for 
102.30 	sick leave that are accumulated under the provisions of a uniform school district policy that 
102.31 	applies equally to all similarly situated persons in the district.; and
103.1 	(11) payments from the family and medical benefit insurance account for Minnesota 
103.2 	paid leave under chapter 268B.
103.3 	(c) Amounts provided to an employee by the employer through a grievance proceeding 
103.4 	or a legal settlement are salary only if the settlement is reviewed by the executive director 
103.5 	and the amounts are determined by the executive director to be consistent with paragraph 
103.6 	(a) and prior determinations.

103.7 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2026.

103.8 	Sec. 15. Minnesota Statutes 2024, section 354A.095, is amended to read:
103.9 	354A.095 PARENTAL AND MATERNITY LEAVE.
103.10 	Basic or coordinated members of the St. Paul Teachers Retirement Fund Association 
103.11 	who are granted on an authorized parental or maternity leave of absence by the employing 
103.12 	authority, are entitled to obtain service credit not to exceed one year for the period of leave 
103.13 	upon payment to the fund by the end of the fiscal year following the fiscal year in which 
103.14 	the leave of absence terminated. The amount of the payment must include the total required 
103.15 	employee and employer contributions for the period of leave prescribed in section 354A.12. 
103.16 	Payment must be based on the member's average monthly salary rate upon return to teaching 
103.17 	service, and is payable without interest. Payment must be accompanied by a certified or 
103.18 	otherwise adequate copy of the resolution or action of the employing authority granting or 
103.19 	approving the leave.

103.20 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2026.

103.21 	Sec. 16. Minnesota Statutes 2024, section 356.30, subdivision 1, is amended to read:
103.22 		Subdivision 1.Eligibility; computation of annuity. (a) Notwithstanding any provisions 
103.23 	of the laws governing the covered retirement plans listed in subdivision 3 and except as 
103.24 	provided in subdivision 1a, a person may elect to receive, upon retirement, a retirement 
103.25 	annuity from each covered retirement plan, subject to the provisions of paragraph (b), if the 
103.26 	person has:
103.27 	(1) allowable service in any two or more of the covered plans;
103.28 	(2) at least one-half year of allowable service in each covered plan, based on the allowable 
103.29 	service in each plan;
103.30 	(3) total allowable service that equals or exceeds the longest service credit vesting 
103.31 	requirement of the applicable retirement plan; and
104.1 	(4) not begun to receive an annuity from any covered plan or made application for 
104.2 	benefits from each applicable plan and the retirement annuity effective dates of each plan 
104.3 	are within a one-year period.
104.4 	(b) If all requirements in paragraph (a) have been satisfied, the retirement annuity from 
104.5 	each plan must be based upon the allowable service, accrual rates, and average salary in the 
104.6 	applicable plan except as further specified or modified in the following clauses:
104.7 	(1) the laws governing annuities must be the law in effect on the date of termination 
104.8 	from the last period of public service under a covered retirement plan with which the person 
104.9 	earned a minimum of one-half year of allowable service credit during that employment;
104.10 	(2) the average salary used to calculate the annuity for each formula plan must be based 
104.11 	on the employee's highest five successive years of covered salary during the entire service 
104.12 	in covered plans;
104.13 	(3) the accrual rates under each plan must be the percentages prescribed by each plan's 
104.14 	formula in effect for the respective years of allowable service from one plan to the next, 
104.15 	recognizing all previous allowable service with the other covered plans;
104.16 	(4) the allowable service in all the covered plans must be combined in determining 
104.17 	eligibility for and the application of each plan's provisions with respect to reduction in the 
104.18 	annuity amount for retirement prior to normal retirement age; and
104.19 	(5) the annuity amount payable for any allowable service under a nonformula plan that 
104.20 	is a covered plan must not be affected, but such service and covered salary must be used in 
104.21 	the above calculation.
104.22 	(c) If a person eligible for an annuity under paragraph (a) from each covered plan 
104.23 	terminates all public service, the deferred annuity must be augmented from the date of 
104.24 	termination until the earlier of:
104.25 	(1) the effective date of retirement; or
104.26 	(2) December 31, 2018, for the Minnesota State Retirement System and the Public 
104.27 	Employees Retirement Association or June 30, 2019, for the Teachers Retirement Association 
104.28 	and the St. Paul Teachers Retirement Association.
104.29 	A deferred annuity must not be augmented after the applicable dates under clause (2). 
104.30 	The appropriate rate of augmentation is the rate in effect on the date on which the person 
104.31 	entered into public employment and subsequently adjusted according to the laws governing 
104.32 	each covered plan, as applicable.
105.1 	(d) This section does not apply to any person whose final termination from the last public 
105.2 	service under a covered plan was before May 1, 1975.
105.3 	(e) For the purpose of computing annuities under this section:
105.4 	(1) the judges retirement fund accrual rate must not exceed 3.2 percent per year of service 
105.5 	for any year of service or fraction thereof;
105.6 	(2) the public employees police and fire plan and the State Patrol retirement plan accrual 
105.7 	rate must not exceed 3.0 percent per year of service for any year of service or fraction 
105.8 	thereof;
105.9 	(3) the legislators retirement plan accrual rate must not exceed 2.5 percent, but this limit 
105.10 	does not apply to the adjustment provided under section 3A.02, subdivision 1, paragraph 
105.11 	(c); and
105.12 	(4) any other covered plan's accrual rate must not exceed 2.7 percent per year of service 
105.13 	for any year of service or fraction thereof.
105.14 	(f) Any period of time for which a person has credit in more than one of the covered 
105.15 	plans must be used only once for the purpose of determining total allowable service.
105.16 	(g) If the period of duplicated service credit is more than one-half year, or the person 
105.17 	has credit for more than one-half year, with each of the plans, each plan must apply its 
105.18 	formula to a prorated service credit for the period of duplicated service based on a fraction 
105.19 	of the salary on which deductions were paid to that fund for the period divided by the total 
105.20 	salary on which deductions were paid to all plans for the period.
105.21 	(h) If the period of duplicated service credit is less than one-half year, or when added 
105.22 	to other service credit with that plan is less than one-half year, the service credit must be 
105.23 	ignored and a refund of contributions made to the person in accord with that plan's refund 
105.24 	provisions.

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

105.26 	Sec. 17. Minnesota Statutes 2024, section 356.30, is amended by adding a subdivision to 
105.27 	read:
105.28 		Subd. 1a.Exceptions for certain covered plans. (a) A person meets the requirement 
105.29 	of subdivision 1, paragraph (a), clause (1), and does not need to meet the requirements of 
105.30 	subdivision 1, paragraph (a), clauses (2) and (4), to calculate a retirement annuity pursuant 
105.31 	to this section if the person is eligible to receive retirement annuities from:
105.32 	(1) both of the covered plans specified in subdivision 3, clauses (1) and (2);
106.1 	(2) both of the covered plans specified in subdivision 3, clauses (1) and (13); or
106.2 	(3) the covered plan specified in subdivision 3, clause (12), for allowable service earned 
106.3 	under the general employees retirement plan and the local government probation and 
106.4 	telecommunicator retirement plan if the person was transferred from the general employees 
106.5 	retirement plan to the local government probation and telecommunicator retirement plan 
106.6 	on January 1, 2027.
106.7 	(b) This paragraph applies to a person who is eligible to receive retirement annuities 
106.8 	from the covered plans specified in subdivision 3, clauses (1) and (2), and any other covered 
106.9 	plan and who elects to calculate the retirement annuities as follows:
106.10 	(1) for the retirement annuities from the covered plans specified in subdivision 3, clauses 
106.11 	(1) and (2), the person does not need to meet the requirements of subdivision 1, paragraph 
106.12 	(a), clauses (2) and (4), and may begin to receive one of the annuities and defer receiving 
106.13 	the other annuity; and
106.14 	(2) for the retirement annuity from another covered plan, the person is entitled to have 
106.15 	the retirement annuity from the other covered plan calculated under this section if the person 
106.16 	meets the requirements of subdivision 1, paragraph (a), clauses (2) and (4), and the person 
106.17 	has not begun to receive an annuity from the other covered plan or made application for 
106.18 	benefits from the other covered plan, and the retirement annuity effective dates of either of 
106.19 	the covered plans specified in subdivision 3, clauses (1) and (2), and the other covered plan 
106.20 	are within a one-year period.
106.21 	(c) This paragraph applies to a person who is eligible to receive retirement annuities 
106.22 	from the covered plans specified in subdivision 3, clauses (1) and (13), and any other covered 
106.23 	plan and who elects to calculate the retirement annuities as follows:
106.24 	(1) for the retirement annuities from the covered plans specified in subdivision 3, clauses 
106.25 	(1) and (13), the person does not need to meet the requirements of subdivision 1, paragraph 
106.26 	(a), clauses (2) and (4), and may begin to receive one of the annuities and defer receiving 
106.27 	the other annuity; and
106.28 	(2) for the retirement annuity from another covered plan, the person is entitled to have 
106.29 	the retirement annuity from the other covered plan calculated under this section if the person 
106.30 	meets the requirements of subdivision 1, paragraph (a), clauses (2) and (4), and the person 
106.31 	has not begun to receive an annuity from the other covered plan or made application for 
106.32 	benefits from the other covered plan, and the retirement annuity effective dates of either of 
106.33 	the covered plans specified in subdivision 3, clauses (1) and (13), and the other covered 
106.34 	plan are within a one-year period.
107.1 	(d) This paragraph applies to a person who is eligible to receive retirement annuities 
107.2 	from the covered plan specified in subdivision 3, clause (12), for allowable service earned 
107.3 	under the general employees retirement plan, the local government probation and 
107.4 	telecommunicator retirement plan, and any other covered plan, and who elects to calculate 
107.5 	the retirement annuities as follows:
107.6 	(1) for the retirement annuities from the covered plan specified in subdivision 3, clause 
107.7 	(12), the person does not need to meet the requirements of subdivision 1, paragraph (a), 
107.8 	clauses (2) and (4), and may begin to receive a retirement annuity for either the allowable 
107.9 	service under the general employees retirement plan or the local government probation and 
107.10 	telecommunicator retirement plan and defer receiving the other annuity; and
107.11 	(2) for the retirement annuity from another covered plan, the person is entitled to have 
107.12 	the retirement annuity from the other covered plan calculated under this section if the person 
107.13 	meets the requirements of subdivision 1, paragraph (a), clauses (2) and (4), and the person 
107.14 	has not begun to receive an annuity from the other covered plan or made application for 
107.15 	benefits from the other covered plan, and the retirement annuity effective dates of the covered 
107.16 	plan specified in subdivision 3, clause (12), and the other covered plan are within a one-year 
107.17 	period.
107.18 	(e) Subdivision 1, paragraph (b), clause (1), does not apply if a person is eligible to 
107.19 	receive retirement annuities from the covered plans as specified in paragraph (a). Instead, 
107.20 	an annuity from a covered plan specified in paragraph (a) must be calculated under the law 
107.21 	in effect on the date of termination of public service covered by the covered plan from which 
107.22 	the annuity is received.

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

107.24 	Sec. 18. Minnesota Statutes 2024, section 356.30, subdivision 3, is amended to read:
107.25 		Subd. 3.Covered plans. This section applies to the following retirement plans:
107.26 	(1) the general state employees retirement plan of the Minnesota State Retirement System, 
107.27 	established under chapter 352;
107.28 	(2) the correctional state employees retirement plan of the Minnesota State Retirement 
107.29 	System, established under chapter 352;
107.30 	(3) the unclassified employees retirement program, established under chapter 352D;
107.31 	(4) the State Patrol retirement plan, established under chapter 352B;
108.1 	(5) the legislators retirement plan, established under chapter 3A, including constitutional 
108.2 	officers as specified in that chapter;
108.3 	(6) the general employees retirement plan of the Public Employees Retirement 
108.4 	Association, established under chapter 353;
108.5 	(7) the public employees police and fire retirement plan of the Public Employees 
108.6 	Retirement Association, established under chapter 353;
108.7 	(8) the local government correctional service retirement plan of the Public Employees 
108.8 	Retirement Association, established under chapter 353E;
108.9 	(9) the Teachers Retirement Association, established under chapter 354;
108.10 	(10) the St. Paul Teachers Retirement Fund Association, established under chapter 354A; 
108.11 	and
108.12 	(11) the judges retirement fund, established by chapter 490.;
108.13 	(12) the local government probation and telecommunicator retirement plan of the Public 
108.14 	Employees Retirement Association, established under chapter 353H; and
108.15 	(13) the special coverage subplans, established under section 352.85, 352.86, 352.87, 
108.16 	or 352.88.

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

108.18 	Sec. 19. Minnesota Statutes 2024, section 356.461, subdivision 1, is amended to read:
108.19 		Subdivision 1.Joint and survivor annuity computation. (a) Notwithstanding any 
108.20 	provision of section 356.215, subdivision 8, or 356.415 to the contrary, for purposes of 
108.21 	computing joint and survivor annuities under each covered retirement plan in subdivision 
108.22 	2, the applicable investment return assumption is 6.5 percent unless a different percentage 
108.23 	has been approved or deemed approved under paragraph (b) for the covered retirement plan.
108.24 	(b) A change in the investment return assumption for computing joint and survivor 
108.25 	annuities may be proposed by the governing board of a covered retirement plan. The 
108.26 	assumption may be changed only with the approval of the Legislative Commission on 
108.27 	Pensions and Retirement or after a period of one year has elapsed since the date on which 
108.28 	the proposed assumption change was received by the Legislative Commission on Pensions 
108.29 	and Retirement without commission action.
109.1 	(c) The executive director of the Legislative Commission on Pensions and Retirement 
109.2 	must update the appendix to the standards for actuarial work whenever a change in the 
109.3 	assumption is approved or deemed approved.

109.4 	EFFECTIVE DATE. This section is effective July 1, 2026.

109.5 	ARTICLE 9
109.6 	MINNESOTA SECURE CHOICE RETIREMENT PROGRAM

109.7 	Section 1. Minnesota Statutes 2024, section 187.03, is amended by adding a subdivision 
109.8 	to read:
109.9 		Subd. 1a.Annual report. "Annual report" means a report on the following:
109.10 	(1) financial performance of the program and the agency;
109.11 	(2) program expenses, including costs attributable to the use of outside consultants, 
109.12 	independent contractors, and other persons who are not state employees;
109.13 	(3) program outcomes;
109.14 	(4) progress toward savings goals established by the board;
109.15 	(5) statistics on the number of participating employees, participating employers, and 
109.16 	covered employees who have opted out of participation;
109.17 	(6) estimated impact of the program on social safety net programs; and
109.18 	(7) penalties, violations, and disciplinary actions for enforcement.

109.19 	Sec. 2. Minnesota Statutes 2025 Supplement, section 187.03, subdivision 5, is amended 
109.20 	to read:
109.21 		Subd. 5.Covered employee. (a) "Covered employee" means a person who is employed 
109.22 	by a covered employer or described in section 187.05, subdivision 7, and who satisfies any 
109.23 	other criteria established by the board.
109.24 	(b) Covered employee does not include:
109.25 	(1) a person who, on December 31 of the preceding calendar year, was younger than 18 
109.26 	years of age;
109.27 	(2) a person covered under the federal Railway Labor Act, as amended, United States 
109.28 	Code, title 45, sections 151 et seq.;
110.1 	(3) a person on whose behalf an employer makes contributions to a Taft-Hartley 
110.2 	multiemployer pension trust fund;
110.3 	(4) a person employed by the government of the United States, another country, the state 
110.4 	of Minnesota, another state, or any subdivision thereof; or
110.5 	(5) a person employed on a temporary or seasonal basis for a limited duration, which 
110.6 	the employer determines at the time the person is hired will not extend beyond 180 days.
110.7 	(c) A person described in paragraph (b), clause (5), may elect to have contributions 
110.8 	deducted from the person's paycheck for remittance to the program, but only if the employer 
110.9 	would otherwise be considered a covered employer.

110.10 	Sec. 3. Minnesota Statutes 2025 Supplement, section 187.03, subdivision 6a, is amended 
110.11 	to read:
110.12 		Subd. 6a.Enrollment window. "Enrollment window" means:
110.13 	(1) the period established by the board, according to a phase-in schedule approved under 
110.14 	Laws 2023, chapter 46, section 10, subdivision 1, paragraph (b), that is applicable to each 
110.15 	covered employer and during which the covered employer is first required to provide 
110.16 	information to covered employees and enroll covered employees who do not elect to opt 
110.17 	out of the program.;
110.18 	(2) the 21-day period beginning with a covered employee's first day of employment with 
110.19 	a covered employer during which the covered employer is required to enroll the covered 
110.20 	employee; or
110.21 	(3) the 21-day period beginning on January 1 after the calendar year during which an 
110.22 	employer first becomes a covered employer.

110.23 	Sec. 4. Minnesota Statutes 2024, section 187.03, is amended by adding a subdivision to 
110.24 	read:
110.25 		Subd. 15.Waiting period. "Waiting period" means the 30-day period that begins on 
110.26 	the day on which a covered employee is enrolled in the program.

110.27 	Sec. 5. Minnesota Statutes 2024, section 187.05, subdivision 1, is amended to read:
110.28 		Subdivision 1.Program established. (a) The board must operate an employee a
110.29 	retirement savings program whereby contributions are made by employee payroll deduction 
110.30 	contributions are transmitted or, if a covered employee is not employed by a covered 
111.1 	employer, by direct payment on an after-tax or pretax basis by covered employers to 
111.2 	individual retirement accounts established under the program.
111.3 	(b) The board must establish procedures for opening a Roth IRA, a traditional IRA, or 
111.4 	both a Roth IRA and a traditional IRA for each covered employee whose covered employer 
111.5 	transmits employee payroll deduction contributions under or, if a covered employee is not 
111.6 	employed by a covered employer, transmits payment to the program.
111.7 	(c) Contributions must be made on an after-tax (Roth) basis, unless the covered employee 
111.8 	elects to contribute on a pretax basis.

111.9 	Sec. 6. Minnesota Statutes 2025 Supplement, section 187.05, subdivision 1a, is amended 
111.10 	to read:
111.11 		Subd. 1a.Certification by employers that are not covered employers. (a) Any entity 
111.12 	or person may file through the program web portal or, with the consent of the executive 
111.13 	director, by mail or email, a certification with the executive director on a form prescribed 
111.14 	by the executive director and provide documentation in support of the certification, as 
111.15 	requested by the executive director, stating that the entity or person is not a covered employer. 
111.16 	The certification must state that the entity or person is not a covered employer for one or 
111.17 	more of the following reasons:
111.18 	(1) the entity or person has not been engaged for at least 12 months in a business, industry, 
111.19 	profession, trade, or other enterprise in Minnesota, whether for profit or not for profit;
111.20 	(2) the entity or person does not employ five or more employees;
111.21 	(3) the entity or person sponsors or contributes to or, in the immediately preceding 12 
111.22 	months, sponsored or contributed to a retirement savings plan for its employees; or
111.23 	(4) the entity is a political subdivision of the state or federal government.
111.24 	(b) Within 30 days of receiving the certification, the executive director must accept the 
111.25 	certification or issue a determination that the entity or person is a covered employer and 
111.26 	subject to the requirements of section 187.07.
111.27 	(c) The entity or person may appeal the executive director's determination by filing an 
111.28 	appeal with the board of directors no later than 30 days after receipt of the determination.
111.29 	(d) If necessary to determine compliance with program requirements, the executive 
111.30 	director may request that an entity or person provide documentation in support of a 
111.31 	certification filed under paragraph (a). If the entity or person does not provide supporting 
111.32 	documentation within 30 days of the request or the documentation is inadequate, the executive 
112.1 	director may reject the certification and require the entity or person to enroll its employees 
112.2 	in the program.

112.3 	Sec. 7. Minnesota Statutes 2025 Supplement, section 187.05, subdivision 4, is amended 
112.4 	to read:
112.5 		Subd. 4.Contribution rate. (a) The board may change the required employee 
112.6 	contribution rates and the escalation schedule under section 187.07, subdivision 1 1a.
112.7 	(b) The board must provide all covered employers and covered employees with notice 
112.8 	of a change in employee contribution rates or the escalation schedule at least six months in 
112.9 	advance of the effective date of the change.
112.10 	(b) A covered employee must have the right, annually or more frequently as determined 
112.11 	by the board, to change the contribution rate, opt out or elect not to contribute, or cease 
112.12 	contributions.

112.13 	Sec. 8. Minnesota Statutes 2024, section 187.05, subdivision 7, is amended to read:
112.14 		Subd. 7.Individuals not employed by a covered employer. (a) In addition to home 
112.15 	and community-based services employees under paragraph (b), the board may allow 
112.16 	individuals not employed by a covered employer to open and contribute to an account in 
112.17 	the program, in which case the individual must be considered a covered employee for 
112.18 	purposes of sections 187.05 to 187.11 187.14.
112.19 	(b) The board must allow any home and community-based services employee to open 
112.20 	and contribute to an account in the program within six twelve months of the opening of the 
112.21 	program and must consider a home and community-based services employee a covered 
112.22 	employee for purposes of sections 187.05 to 187.11 187.14.

112.23 	Sec. 9. Minnesota Statutes 2024, section 187.05, is amended by adding a subdivision to 
112.24 	read:
112.25 		Subd. 9.Covered employee right to begin contributing, change the contribution 
112.26 	rate, or not contribute. A covered employee must have the right, annually or more 
112.27 	frequently as determined by the board, to:
112.28 	(1) begin making contributions to the program by payroll deduction or, if not employed 
112.29 	by a covered employer, by payment to the program;
112.30 	(2) change the percentage of compensation being contributed to the program by payroll 
112.31 	deduction;
113.1 	(3) elect not to contribute; or
113.2 	(4) cease contributions.

113.3 	Sec. 10. Minnesota Statutes 2024, section 187.06, subdivision 3, is amended to read:
113.4 		Subd. 3.Individual accounts established. The trustee or custodian, as applicable, must 
113.5 	maintain an account for each covered employee who has made or is making employee 
113.6 	payroll deduction contributions with respect to each covered employee or, if the covered 
113.7 	employee is not employed by a covered employer, has made or is making payments to the 
113.8 	program until all assets in the account are distributed. Interest and Investment earnings on 
113.9 	the amount in the account are credited to the account, and investment losses and 
113.10 	administrative fees are deducted from the account.

113.11 	Sec. 11. Minnesota Statutes 2025 Supplement, section 187.07, subdivision 1, is amended 
113.12 	to read:
113.13 		Subdivision 1.Requirement to enroll employees and begin payroll deduction 
113.14 	contributions. (a) Each A covered employer must enroll its covered employees in the 
113.15 	program and withhold during the applicable enrollment window.
113.16 	(b) The covered employer must begin withholding payroll deduction contributions from 
113.17 	the first paycheck of each covered employee's paycheck no later than 30 days after the 
113.18 	covered employee's first day of employment employee after the end of the covered employee's 
113.19 	waiting period, unless the covered employee has elected not to contribute.
113.20 	(b) Unless the board has approved a different rate or rates under section 187.05, 
113.21 	subdivision 4, or a covered employee has elected a different contribution rate or not to 
113.22 	contribute, the employee contribution rates and escalation schedule are:
113.23 	(1) five percent of pay for the covered employee's first year of participation;
113.24 	(2) six percent of pay for the covered employee's second year of participation;
113.25 	(3) seven percent of pay for the covered employee's third year of participation; and
113.26 	(4) eight percent of pay for the covered employee's fourth year of participation and each 
113.27 	year thereafter.
113.28 	(c) Paragraph (a) does not apply to a covered employer until the covered employer's 
113.29 	enrollment window has opened. No later than 30 days after By the end of the enrollment 
113.30 	window, the covered employer must have enrolled all covered employees, except for any 
113.31 	covered employee who has elected not to contribute.
114.1 	(d) The executive director must communicate annually by email or otherwise in writing 
114.2 	to each covered employee:
114.3 	(1) the annual limit on employee contributions to a traditional IRA and a Roth IRA in 
114.4 	effect under section 408 and 408A, respectively, of the Internal Revenue Code; and
114.5 	(2) notice that it is the responsibility of the covered employee to reduce the covered 
114.6 	employee's contribution rate from the rate under paragraph (b) as necessary to stay within 
114.7 	the limit under section 408 or section 408A of the Internal Revenue Code that is applicable 
114.8 	to the covered employee and the type of IRA to which the contributions are being credited.

114.9 	Sec. 12. Minnesota Statutes 2024, section 187.07, is amended by adding a subdivision to 
114.10 	read:
114.11 		Subd. 1a.Default contribution rate and escalation schedule. Unless the board has 
114.12 	approved a different rate or rates under section 187.05, subdivision 4, or a covered employee 
114.13 	has elected a different contribution rate or not to contribute, the employee contribution rates 
114.14 	and escalation schedule are:
114.15 	(1) five percent of pay for the covered employee's first year of participation;
114.16 	(2) six percent of pay for the covered employee's second year of participation;
114.17 	(3) seven percent of pay for the covered employee's third year of participation; and
114.18 	(4) eight percent of pay for the covered employee's fourth year of participation and each 
114.19 	year thereafter.

114.20 	Sec. 13. Minnesota Statutes 2024, section 187.08, subdivision 1, is amended to read:
114.21 		Subdivision 1.Membership. The policy-making function of the program is vested in a 
114.22 	board of directors consisting of seven members as follows:
114.23 	(1) the executive director of the Minnesota State Retirement System or the executive 
114.24 	director's designee;
114.25 	(2) the executive director of the State Board of Investment or the executive director's 
114.26 	designee;
114.27 	(3) three members with relevant experience chosen by the Legislative Commission on 
114.28 	Pensions and Retirement, one from each of the following experience categories:;
114.29 	(i) executive or operations manager with substantial experience in record keeping 401(k) 
114.30 	plans;
115.1 	(ii) executive or operations manager with substantial experience in individual retirement 
115.2 	accounts; and
115.3 	(iii) executive or other professional with substantial experience in retirement plan 
115.4 	investments;
115.5 	(4) a human resources or retirement benefits executive from a private company with 
115.6 	substantial experience in administering the company's 401(k) plan, appointed by the governor; 
115.7 	and
115.8 	(5) a small business owner, a small business executive, or a nonprofit executive appointed 
115.9 	by the governor.

115.10 	Sec. 14. Minnesota Statutes 2024, section 187.08, subdivision 2, is amended to read:
115.11 		Subd. 2.Appointment. (a) Members appointed by the governor must be appointed as 
115.12 	provided in section 15.0597.
115.13 	(b) The Legislative Commission on Pensions and Retirement is not required to consider 
115.14 	a seat on the board as vacant if the incumbent provides notice to the chair of the board and 
115.15 	executive director that the incumbent wishes to serve an additional term as permitted under 
115.16 	subdivision 3. The executive director of the program must notify the secretary of state and 
115.17 	the chair or executive director of the Legislative Commission on Pensions and Retirement 
115.18 	that the incumbent wishes to serve an additional term. The secretary of state must not post 
115.19 	a seat as vacant and accept applications if the chair of the board and the chair or executive 
115.20 	director of the Legislative Commission on Pensions and Retirement accept the incumbent's 
115.21 	request to serve an additional term.

115.22 	Sec. 15. Minnesota Statutes 2025 Supplement, section 187.08, subdivision 3, is amended 
115.23 	to read:
115.24 		Subd. 3.Membership terms. (a) Board members serve for two-year terms, except:
115.25 	(1) the executive directors of the Minnesota State Retirement System and the State Board 
115.26 	of Investment serve indefinitely; and
115.27 	(2) the initial term of the member who is an executive or other professional with 
115.28 	substantial experience in retirement plan investments under subdivision 1, clause (3), item 
115.29 	(iii), and the member who is a human resources executive under subdivision 1, clause (4), 
115.30 	is three years.
116.1 	(b) A board members' terms may be renewed, member may renew the member's term,
116.2 	but no member, other than the executive directors of the Minnesota State Retirement Systems 
116.3 	and the State Board of Investment, may serve more than two consecutive terms. To serve 
116.4 	an additional term, an incumbent must notify the chair of the board and the executive director 
116.5 	that the incumbent wishes to serve an additional term.

116.6 	Sec. 16. Minnesota Statutes 2024, section 187.08, subdivision 6, is amended to read:
116.7 		Subd. 6.Chair; quorum. (a) The board shall mustselect elect a chair from among its 
116.8 	members. The chair shall serve serves for a two-year term and may be reelected by the 
116.9 	members for additional two-year terms. The board may select other officers as necessary 
116.10 	to assist the board in performing the board's duties.
116.11 	(b) A majority of the members, not including for this purpose any vacant member seat, 
116.12 	constitutes a quorum. Approval of any item of board business is effective if approved by a 
116.13 	simple majority vote of members present at a meeting.

116.14 	Sec. 17. Minnesota Statutes 2024, section 187.08, subdivision 8, is amended to read:
116.15 		Subd. 8.Duties. In addition to the duties set forth elsewhere in this chapter, the board 
116.16 	has the following duties:
116.17 	(1) to establish secure processes for enrolling covered employees in the program and 
116.18 	for transmitting employee contributions to accounts in the trust;
116.19 	(2) to prepare a budget and establish procedures for the payment of costs of administering 
116.20 	and operating the program;
116.21 	(3) to lease or otherwise procure equipment necessary to administer the program;
116.22 	(4) to procure insurance in connection with the property of the program and the activities 
116.23 	of the board, executive director, and other staff;
116.24 	(5) to determine the following:
116.25 	(i) any criteria for a covered employee other than employment with a covered employer 
116.26 	under section 187.03, subdivision 5;
116.27 	(ii) contribution rates and an escalation schedule under section 187.05, subdivision 4;
116.28 	(iii) withdrawal and distribution options under section 187.05, subdivision 6; and
116.29 	(iv) the default investment fund under section 187.06, subdivision 5;
116.30 	(6) to keep annual administrative fees, costs, and expenses as low as possible:
117.1 	(i) except that any administrative fee assessed against the accounts of covered employees 
117.2 	may not exceed a reasonable amount relative to the fees charged by auto-IRA or defined 
117.3 	contribution programs of similar size in the state of Minnesota or another state; and
117.4 	(ii) the fee may be asset-based, flat fee, or a hybrid combination of asset-based and flat 
117.5 	fee;
117.6 	(7) to determine the eligibility of an employer, employee, or other individual to participate 
117.7 	in the program and review and decide claims for benefits and make factual determinations;
117.8 	(8) to prepare information regarding the program that is clear and concise for 
117.9 	dissemination to all covered employees and includes the following:
117.10 	(i) the benefits and risks associated with participating in the program;
117.11 	(ii) procedures for enrolling in the program and opting out of the program, electing a 
117.12 	different or zero percent employee contribution rate, making investment elections, applying 
117.13 	for a distribution of employee accounts, and making a claim for benefits;
117.14 	(iii) the federal and state income tax consequences of participating in the program, which 
117.15 	may consist of or include the disclosure statement required to be distributed by retirement 
117.16 	plan trustees or custodians under the Internal Revenue Code and the Treasury Regulations 
117.17 	thereunder;
117.18 	(iv) how to obtain additional information on the program; and
117.19 	(v) disclaimers of covered employer and state responsibility, including the following 
117.20 	statements:
117.21 	(A) covered employees seeking financial, investment, or tax advice should contact their 
117.22 	own advisors;
117.23 	(B) neither a covered employer nor the state of Minnesota are liable for decisions covered 
117.24 	employees make regarding their account in the program;
117.25 	(C) neither a covered employer nor the state of Minnesota guarantees the accounts in 
117.26 	the program or any particular investment rate of return; and
117.27 	(D) neither a covered employer nor the state of Minnesota monitors or has an obligation 
117.28 	to monitor any covered employee's eligibility under the Internal Revenue Code to make 
117.29 	contributions to an account in the program, or whether the covered employee's contributions 
117.30 	to an account in the program exceed the maximum permissible contribution under the 
117.31 	Internal Revenue Code;
118.1 	(9)(8) to publish an annual financial report, prepared according to generally accepted 
118.2 	accounting principles, on the operations of the program, which must include but not be 
118.3 	limited to costs attributable to the use of outside consultants, independent contractors, and 
118.4 	other persons who are not state employees and deliver the report to the chairs and ranking 
118.5 	minority members of the legislative committees with jurisdiction over jobs and economic 
118.6 	development and state government finance, the executive directors of the State Board of 
118.7 	Investment and the Legislative Commission on Pensions and Retirement, and the Legislative 
118.8 	Reference Library;
118.9 	(10) to publish an annual report regarding plan outcomes, progress toward savings goals 
118.10 	established by the board, statistics on the number of participants, participating employers, 
118.11 	and covered employees who have opted out of participation, plan expenses, estimated impact 
118.12 	of the program on social safety net programs, and penalties and violations, and disciplinary 
118.13 	actions for enforcement, and deliver the report to the chairs and ranking minority members 
118.14 	of the legislative committees with jurisdiction over jobs and economic development and 
118.15 	state government finance, the executive directors of the State Board of Investment and the 
118.16 	Legislative Commission on Pensions and Retirement, and the Legislative Reference Library;
118.17 	(11) (9) to file all reports required under the Internal Revenue Code or chapter 290;
118.18 	(12) (10) to, at the board's discretion, seek and accept gifts, grants, and donations to be 
118.19 	used for the program, unless such gifts, grants, or donations would result in a conflict of 
118.20 	interest relating to the solicitation of service provider for program administration, and deposit 
118.21 	such gifts, grants, or donations in the Secure Choice administrative fund;
118.22 	(13) (11) to, at the board's discretion, seek and accept appropriations from the state or 
118.23 	loans from the state or any agency of the state;
118.24 	(14) (12) to assess the feasibility of partnering with another state or a governmental 
118.25 	subdivision of another state to administer the program through shared administrative 
118.26 	resources and, if determined beneficial, enter into contracts, agreements, memoranda of 
118.27 	understanding, or other arrangements with any other state or an agency or a subdivision of 
118.28 	any other state to administer, operate, or manage any part of the program, which may include 
118.29 	combining resources, investments, or administrative functions;
118.30 	(15) (13) to hire, retain, and terminate third-party service providers as the board deems 
118.31 	necessary or desirable for the program, including but not limited to the trustees, consultants, 
118.32 	investment managers or advisors, custodians, insurance companies, recordkeepers, 
118.33 	administrators, consultants, actuaries, legal counsel, auditors, and other professionals, 
118.34 	provided that each service provider is authorized to do business in the state;
119.1 	(16) (14) to interpret the program's governing documents and this chapter and make all 
119.2 	other decisions necessary to administer the program;
119.3 	(17) (15) to conduct comprehensive employer and worker education and outreach 
119.4 	regarding the program that reflect the cultures and languages of the state's diverse workforce 
119.5 	population, which may, in the board's discretion, include collaboration with state and local 
119.6 	government agencies, community-based and nonprofit organizations, foundations, vendors, 
119.7 	and other entities deemed appropriate to develop and secure ongoing resources; and
119.8 	(18) (16) to prepare notices for delivery to covered employees regarding the escalation 
119.9 	schedule and to each covered employee before the covered employee is subject to an 
119.10 	automatic contribution increase.

119.11 	Sec. 18. Minnesota Statutes 2025 Supplement, section 187.11, is amended to read:
119.12 	187.11 OTHER STATE AGENCIES TO PROVIDE ASSISTANCE.
119.13 	(a) The board may enter into intergovernmental agreements with the commissioner of 
119.14 	revenue, the commissioner of labor and industry, the commissioner of employment and 
119.15 	economic development, and any other state agency that the board deems necessary or 
119.16 	appropriate to provide outreach, technical assistance, or compliance services. An agency 
119.17 	that enters into an intergovernmental agreement with the board pursuant to this section must 
119.18 	collaborate and cooperate with the board to provide the outreach, technical assistance, or 
119.19 	compliance services under any such agreement. The board, executive director, and program 
119.20 	staff must maintain the privacy of data obtained under any intergovernmental agreement if 
119.21 	required under chapter 13.
119.22 	(b) For purposes of section 268.19, subdivision 1, paragraph (a), clause (20), "assisting 
119.23 	with communication with employers and to verify employer compliance with chapter 187" 
119.24 	means providing the executive director with at least the following information for employers, 
119.25 	to the extent available to the commissioner of employment and economic development:
119.26 	(1) federal employer identification number;
119.27 	(2) business name, address, mailing address, email address, and phone number;
119.28 	(3) number of employees; and
119.29 	(4) employer industry code.
119.30 	(c) The commissioner of administration must provide assist the executive director in 
119.31 	identifying and leasing suitable office space for the executive director and program staff in 
119.32 	the Capitol complex for the executive director and staff of the program the city of St. Paul.

120.1 	Sec. 19. Minnesota Statutes 2025 Supplement, section 187.12, subdivision 1, is amended 
120.2 	to read:
120.3 		Subdivision 1.Failure to enroll covered employees or distribute information. (a)
120.4 	The board may assess penalties against a covered employer that fails to comply with section 
120.5 	187.07, subdivision 1or 3 or both subdivisions 1 and 3, beginning with the second 
120.6 	anniversary of the date on which the covered employer was first required to comply with 
120.7 	section 187.07, subdivision 1 or 3, as applicable., paragraph (a), beginning with the second 
120.8 	anniversary of the last day of the applicable enrollment window or fails to comply with 
120.9 	section 187.07, subdivision 1, paragraph (b), beginning with the second anniversary of the 
120.10 	first paycheck after a covered employee's waiting period, as follows:
120.11 	(b) The board may assess the following penalties for a covered employer's failure to 
120.12 	comply with section 187.07, subdivision 1 or 3:
120.13 	(1) on the second anniversary, a penalty of $100 per covered employee, not to exceed 
120.14 	$4,000;
120.15 	(2) on the third anniversary, a penalty of $200 per covered employee, not to exceed 
120.16 	$6,000;
120.17 	(3) on the fourth anniversary, a penalty of $300 per covered employee; and
120.18 	(4) on each anniversary after the fourth anniversary, a penalty of $500 per covered 
120.19 	employee.
120.20 	(c) If the covered employer fails to comply with section 187.07, subdivisions 1 and 3, 
120.21 	the board must assess two times the penalties in paragraph (b).
120.22 	(d) The date on which a covered employer is first required to comply with section 187.07, 
120.23 	subdivision 1, is the following:
120.24 	(1) for paragraph (a), on or before the 30th day after the first day of employment of a 
120.25 	covered employee hired by the covered employer; and
120.26 	(2) for paragraph (b), on or before the 30th day after the end of the enrollment window 
120.27 	applicable to the covered employer.
120.28 	(e) The date on which a covered employer is first required to comply with section 187.07, 
120.29 	subdivision 3, is the following:
120.30 	(1) for paragraph (a), for a newly hired covered employee, no later than 14 days after 
120.31 	the covered employee's first day of employment; and
121.1 	(2) for paragraph (b), no later than the 14th day prior to the date of the first paycheck 
121.2 	from which employee contributions could be deducted for transmittal to the program.

121.3 	Sec. 20. [187.13] REQUIRED NOTICES.
121.4 		Subdivision 1.Notice to covered employees upon enrollment. (a) The board must 
121.5 	disseminate a notice regarding the program that is clear and concise to all covered employees 
121.6 	no later than seven days after a covered employee is enrolled by a covered employer.
121.7 	(b) The information in the notice must include:
121.8 	(1) the benefits and risks associated with participating in the program;
121.9 	(2) procedures for enrolling in the program and opting out of the program, electing a 
121.10 	different or zero percent employee contribution rate, making investment elections, applying 
121.11 	for a distribution of employee accounts, and making a claim for benefits;
121.12 	(3) the federal and state income tax consequences of participating in the program, which 
121.13 	may consist of or include the disclosure statement required to be distributed by trustees or 
121.14 	custodians under the Internal Revenue Code;
121.15 	(4) how to obtain additional information on the program; and
121.16 	(5) disclaimers of covered employer and state responsibility, including the following 
121.17 	statements:
121.18 	(i) a covered employee seeking financial, investment, or tax advice should contact the 
121.19 	covered employee's advisors;
121.20 	(ii) neither a covered employer nor the board, the program, or the state of Minnesota is 
121.21 	liable for decisions a covered employee makes regarding the covered employee's account 
121.22 	in the program;
121.23 	(iii) neither a covered employer nor the state of Minnesota guarantees the accounts in 
121.24 	the program or any particular investment rate of return; and
121.25 	(iv) neither a covered employer nor the state of Minnesota monitors or has an obligation 
121.26 	to monitor a covered employee's eligibility under the Internal Revenue Code to make 
121.27 	contributions to an account in the program or whether the covered employee's contributions 
121.28 	to an account in the program exceed the maximum permissible contribution under the 
121.29 	Internal Revenue Code.
121.30 		Subd. 2.Annual notice to covered employees. The executive director must communicate 
121.31 	annually by email or other means in writing to each covered employee:
122.1 	(1) the annual limit on employee contributions to a traditional IRA and a Roth IRA in 
122.2 	effect under sections 408 and 408A of the Internal Revenue Code; and
122.3 	(2) that it is the responsibility of the covered employee to reduce the covered employee's 
122.4 	contribution rate from the rate under section 187.07, subdivision 1a, as necessary to stay 
122.5 	within the limit under section 408 or 408A of the Internal Revenue Code that is applicable 
122.6 	to the covered employee and the type of IRA to which the contributions are being credited.

122.7 	Sec. 21. [187.14] CONFIDENTIALITY OF DATA AND NONSOLICITATION.
122.8 		Subdivision 1.Confidentiality of data. Covered employee data, account owner data, 
122.9 	account data, and data on beneficiaries of accounts are private data. The program, executive 
122.10 	director, and program staff must not disclose private data on individuals, as defined in 
122.11 	section 13.02, to anyone other than the covered employee, account owner, or beneficiary, 
122.12 	except:
122.13 	(1) pursuant to a court order;
122.14 	(2) upon the written consent of the covered employee, account owner, beneficiary, or 
122.15 	other person who provides the data or is the subject of the data; or
122.16 	(3) to a third party with which the program has contracted to perform administrative or 
122.17 	record-keeping functions, but only to the extent necessary to carry out the functions and 
122.18 	subject to the requirements of this subdivision as if the third party were the program.
122.19 		Subd. 2.Nonsolicitation restriction. Neither program staff nor a third-party 
122.20 	administrator, record keeper, or any other vendor or consultant with which the program has 
122.21 	contracted may solicit a covered employee, an account owner, or a beneficiary for any 
122.22 	product or services not related to the program.

122.23 	Sec. 22. REPEALER.
 122.24 	Minnesota Statutes 2025 Supplement, section 187.07, subdivision 3, is repealed.

122.25 	Sec. 23. EFFECTIVE DATE.
 122.26 	Sections 1 to 22 are effective the day following final enactment.

123.1 	ARTICLE 10
123.2 	SUPPLEMENTAL PLANS

123.3 	Section 1. Minnesota Statutes 2024, section 356.24, subdivision 3, is amended to read:
123.4 		Subd. 3.Deferred compensation plan. (a) As used in this section:
123.5 	(1) "deferred compensation plan" means a plan that satisfies the requirements of this 
123.6 	subdivision;
123.7 	(2) "plan administrator" means the individual or entity defined as the plan administrator 
123.8 	in the plan document for the Minnesota deferred compensation plan under section 352.965 
123.9 	or a deferred compensation plan under section 457(b) of the Internal Revenue Code; and
123.10 	(3) "vendor" means the provider of an annuity contract, custodial account, or retirement 
123.11 	income account under a tax-sheltered annuity plan under section 403(b) of the Internal 
123.12 	Revenue Code.
123.13 	(b) The plan is:
123.14 	(1) the Minnesota deferred compensation plan under section 352.965;
123.15 	(2) a tax-sheltered annuity plan under section 403(b) of the Internal Revenue Code; or
123.16 	(3) a deferred compensation plan under section 457(b) of the Internal Revenue Code.
123.17 	(c) For each investment fund available to participants under the plan, other than in a 
123.18 	self-directed brokerage account or fixed annuity contract, the plan administrator or vendor 
123.19 	discloses at least annually to participants a statement that sets forth (1) all fees, including 
123.20 	administrative, maintenance, and investment fees, that impact the rate of return on each 
123.21 	investment fund available under the plan, and (2) the rates of return for the prior one-, five-, 
123.22 	and ten-year periods or for the life of the fund, if shorter, in an easily understandable 
123.23 	document. The plan administrator or vendor must file a copy of this statement annually with 
123.24 	the executive director of the Legislative Commission on Pensions and Retirement.
123.25 	(d) Enrollment in the plan is provided for in:
123.26 	(1) a personnel policy of the public employer;
123.27 	(2) a collective bargaining agreement between the public employer and the exclusive 
123.28 	representative of public employees in an appropriate unit; or
123.29 	(3) an individual employment contract (i) between a city and a city manager or other 
123.30 	management employee, or (ii) between a school district and a superintendent or other 
123.31 	management employee.
124.1 	(e) The plan covers employees of a school district, state agency, or other governmental 
124.2 	subdivision. The plan may cover city managers covered by an alternative retirement 
124.3 	arrangement under section 353.028, subdivision 3, paragraph (a) or (b), but must not cover 
124.4 	employees of the Board of Trustees of Minnesota State Colleges and Universities who are 
124.5 	covered by the Higher Education Supplemental Retirement Plan under chapter 354C.
124.6 	(f) If the public employer makes matching contributions to the plan, the matching 
124.7 	contributions must match, on a dollar for dollar basis, employee elective deferral contributions 
124.8 	not to exceed the lesser of (1) the maximum authorized under the policy described in 
124.9 	paragraph (d) that provides for enrollment in the plan or program, or (2) one-half of the 
124.10 	annual limit on elective deferrals under section 402(g) of the Internal Revenue Code. In 
124.11 	lieu of or in addition to matching an employee's elective deferral contributions, the public 
124.12 	employer may make employer matching contributions on behalf of an employee on account 
124.13 	of qualified student loan payments, as defined in the Secure 2.0 Act of 2022, Public Law 
124.14 	117-328 (December 29, 2022), Division T, section 110, paragraph (b), and any regulations 
124.15 	adopted thereunder. The employer matching contributions on account of an employee's 
124.16 	qualified student loan payments plus any employer matching contributions that match an 
124.17 	employee's elective deferral contributions must not exceed, for the year, the lesser of (1) 
124.18 	the maximum authorized under the policy described in paragraph (d) that provides for 
124.19 	enrollment in the plan or program, (2) one-half of the annual limit on elective deferrals 
124.20 	under section 402(g) of the Internal Revenue Code, or (3) the employee's compensation for 
124.21 	the year.
124.22 	(g) Contributions to the plan may include contributions deducted from an employee's 
124.23 	sick leave, accumulated vacation leave, or accumulated severance pay, whether characterized 
124.24 	as employee contributions or nonelective employer contributions, up to applicable limits 
124.25 	under the Internal Revenue Code. Such contributions are not subject to the match requirement 
124.26 	and limit in paragraph (f).

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

124.28 	ARTICLE 11
124.29 	HEALTH CARE SAVINGS PLAN

124.30 	Section 1. Minnesota Statutes 2024, section 352.98, subdivision 3, is amended to read:
124.31 		Subd. 3.Contributions. (a) Contributions to the plan must be defined in a personnel 
124.32 	policy or in a, collective bargaining agreement, participation plan, or resolution of the 
124.33 	governing body of a public employer or political subdivision.
125.1 	(b) The executive director may offer different types of trusts permitted under the Internal 
125.2 	Revenue Code to best meet the needs of different employer units.
125.3 	(b) (c) Contributions to the plan by or on behalf of the participant must be held in trust 
125.4 	for reimbursement of eligible health-related expenses for participants and their dependents 
125.5 	following termination from public employment or in other circumstances set forth in the 
125.6 	plan document. The executive director shall maintain a separate account of the contributions 
125.7 	made by or on behalf of each participant and the earnings thereon. The executive director 
125.8 	shall make available a limited range of investment options, and each participant may direct 
125.9 	the investment of the accumulations in the participant's account among the investment 
125.10 	options made available by the executive director.
125.11 	(c) (d) This section does not obligate a public employer to meet and negotiate in good 
125.12 	faith with the exclusive bargaining representative of any public employee group regarding 
125.13 	an employer contribution to a postretirement or active employee health care savings plan 
125.14 	authorized by this section and section 356.24, subdivision 1, clause (7). It is not the intent 
125.15 	of the legislature to authorize the state to incur new funding obligations for the costs of 
125.16 	retiree health care or the costs of administering retiree health care plans or accounts.

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

125.18 	ARTICLE 12
125.19 	WORK GROUPS

125.20 	Section 1. WORK GROUP ON VESTING AND EMERGENCY MEDICAL 
125.21 	PROVIDERS IN FIREFIGHTER RELIEF ASSOCIATIONS AND THE STATEWIDE 
125.22 	VOLUNTEER FIREFIGHTER PLAN.
 125.23 		Subdivision 1.Work group established; purpose. The executive director of the 
125.24 	Legislative Commission on Pensions and Retirement (commission executive director) must 
125.25 	convene a work group for the purpose of recommending legislation that would:
125.26 	(1) shorten the vesting schedule for firefighter relief associations to a maximum of ten 
125.27 	years;
125.28 	(2) require that firefighter relief associations include volunteer or paid on-call emergency 
125.29 	medical providers as members on the same basis as volunteer or paid on-call firefighters; 
125.30 	and
125.31 	(3) make the same changes to the PERA Statewide Volunteer Firefighter Plan (SVF) as 
125.32 	are recommended for firefighter relief associations.
126.1 		Subd. 2.Membership. (a) The members of the work group are the following:
126.2 	(1) a representative from the Minnesota Association of Townships;
126.3 	(2) a representative from the Minnesota Association of Small Cities;
126.4 	(3) a representative from the League of Minnesota Cities;
126.5 	(4) a representative from the Minnesota State Fire Chiefs Association;
126.6 	(5) a representative from the Minnesota State Fire Departments Association;
126.7 	(6) a representative of the Office of Emergency Medical Services, designated by the 
126.8 	director of the Office of Emergency Medical Services;
126.9 	(7) a representative of the Office of the State Auditor, designated by the state auditor; 
126.10 	and
126.11 	(8) the executive director of the Public Employees Retirement Association, or the 
126.12 	executive director's designee.
126.13 	(b) The commission executive director may invite others, including the commission's 
126.14 	actuary, to participate in one or more meetings of the work group.
126.15 	(c) The organizations and agencies specified in paragraph (a) must provide the 
126.16 	commission executive director with the names and contact information for the representatives 
126.17 	who will serve on the work group by June 12, 2026.
126.18 		Subd. 3.Mandate. In arriving at the work group's recommendations, the work group 
126.19 	must determine and consider:
126.20 	(1) whether shortening vesting schedules has any impact on a relief association or SVF 
126.21 	fire department's liabilities or funded status and, if so, what options are available to lessen 
126.22 	the impact;
126.23 	(2) any studies or data supporting or critical of the premise that longer vesting schedules 
126.24 	aid retention or recruitment;
126.25 	(3) how many fire departments, whether affiliated with a relief association or participating 
126.26 	in the SVF, have emergency medical providers who solely perform that function, how many 
126.27 	of these emergency medical providers are in each fire department, and the funded status of 
126.28 	the affiliated relief association or SVF account;
126.29 	(4) the basis, if any, for excluding emergency medical providers from firefighter relief 
126.30 	associations and the SVF;
127.1 	(5) the cost of requiring past service credit be provided to emergency medical providers 
127.2 	when the providers become members of relief associations that are defined benefit plans or 
127.3 	the SVF defined benefit plan and options for providing past service credit (that is, as far 
127.4 	back as a provider has active service in the fire department or back to 2019);
127.5 	(6) whether the chronic overfunding in relief associations and the SVF can be expected 
127.6 	to cover any liabilities under clause (1) or costs under clause (3) and what options are 
127.7 	available for relief associations or fire department accounts in the SVF that are not 
127.8 	overfunded;
127.9 	(7) options for phasing in the shorter vesting schedules and requiring coverage of and 
127.10 	past service credit for emergency medical providers; and
127.11 	(8) any other issues related to vesting and eligibility that merit discussion by the work 
127.12 	group and inclusion in the recommendations.
127.13 		Subd. 4.Recommendations; proposed legislation. (a) With the assistance of the 
127.14 	commission executive director, the work group must prepare proposed legislation that 
127.15 	implements the recommendations of the work group. If the work group recommends more 
127.16 	than one approach, the work group must provide alternative bills.
127.17 	(b) The commission executive director must submit the recommendations of the work 
127.18 	group, along with proposed legislation that implements the recommendations, to the 
127.19 	Legislative Commission on Pensions and Retirement by January 29, 2027, or, if later, the 
127.20 	date all members of the commission have been appointed for the 2027-2028 biennium.
127.21 		Subd. 5.Meetings; chair; administrative support. (a) The commission executive 
127.22 	director must convene the first meeting of the work group by July 27, 2026.
127.23 	(b) The members of the work group must elect a chair or co-chairs at the first meeting. 
127.24 	The chair or co-chair is not required to be a member of the work group.
127.25 	(c) Meetings may be conducted remotely or in person or a combination of remotely and 
127.26 	in person.
127.27 	(d) Commission staff must provide meeting space, if needed, and administrative support 
127.28 	to the chair or co-chairs of the work group.
127.29 		Subd. 6.Compensation; lobbying; retaliation. (a) Members of the work group serve 
127.30 	without compensation.
127.31 	(b) Participation in the work group is not lobbying under Minnesota Statutes, chapter 
127.32 	10A.
128.1 	(c) An individual's employer or an organization or association of which an individual 
128.2 	is a member must not retaliate against the individual because of the individual's participation 
128.3 	in the work group.
128.4 		Subd. 7.Expiration. The work group expires June 30, 2027.

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

128.6 	Sec. 2. WORK GROUP ON DUTY DISABILITY AND THE PUBLIC SAFETY 
128.7 	OFFICER'S BENEFIT ACCOUNT.
 128.8 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
128.9 	the meanings given.
128.10 	(b) "Commission" means the Legislative Commission on Pensions and Retirement.
128.11 	(c) "Executive director" means the executive director of the commission.
128.12 	(d) "LCPR account" means the account established in the Legislative Coordinating 
128.13 	Commission that contains $26,694, as of April 1, 2026, and was funded in fiscal year 2024 
128.14 	with a $100,000 appropriation to the Legislative Coordinating Commission for the Legislative 
128.15 	Commission on Pensions and Retirement pursuant to Laws 2023, chapter 45, article 6, 
128.16 	section 3.
128.17 	(e) "Maximum benefit" means the duty disability benefit under Minnesota Statutes, 
128.18 	section 353.656, or the employer's cost to provide the health insurance coverage under 
128.19 	Minnesota Statutes, section 299A.465.
128.20 	(f) "Police and fire plan" means the public employees police and fire plan administered 
128.21 	by the Public Employees Retirement Association.
128.22 	(g) "Public safety officer's benefit account" means the account established under 
128.23 	Minnesota Statutes, section 299A.42.
128.24 	(h) "VA disability schedule" means the schedule for rating disabilities under Code of 
128.25 	Federal Regulations, title 38, part 4, published by the Veterans Affairs Department and most 
128.26 	recently amended on March 20, 2024.
128.27 		Subd. 2.Need for a work group. The commission has identified the following reasons 
128.28 	for establishing a work group:
128.29 	(1) the public safety officer's benefit account is anticipated to be depleted by 2028 based 
128.30 	on information provided by the Department of Management and Budget;
129.1 	(2) the rate of approval by the Public Employees Retirement Association of duty disability 
129.2 	applications is approximately 100 percent;
129.3 	(3) since only one annual report has been filed by the commissioner of public safety 
129.4 	under Minnesota Statutes, section 299A.42, subdivision 2, and the report contains minimal 
129.5 	information on reimbursements in the categories for treatment, salary, fringe benefits, and 
129.6 	health care insurance, the commission is unable to use this report to determine trends, 
129.7 	per-member reimbursements, or related information;
129.8 	(4) waiting until May 20, 2027, to receive the report from the executive director of the 
129.9 	Public Employees Retirement Association under Minnesota Statutes, section 353.032, 
129.10 	subdivision 11, regarding the impact on public safety duty disability trends and costs is too 
129.11 	late to allow for a legislative solution if trends indicate psychological condition treatment 
129.12 	is not resulting in police and fire plan members being able to return to work rather than take 
129.13 	a leave of absence for duty disability;
129.14 	(5) minimal information is available regarding whether police officers and firefighters 
129.15 	who retire under the police and fire plan before age 65 are able to obtain health insurance 
129.16 	coverage at a reasonable cost until age 65 when Medicare is available and whether there 
129.17 	are options available to the police officers and firefighters to obtain adequate coverage;
129.18 	(6) there has been an increase of over 100 percent in the cost of duty disability benefits 
129.19 	as reflected in the change between the 2024 actuarial valuation of the police and fire plan 
129.20 	and the 2025 actuarial valuation and the effect of this increase on the overall health of the 
129.21 	police and fire plan; and
129.22 	(7) to determine how to formulate solutions to the reasons in clauses (1) to (6), legislators 
129.23 	and other decision makers need a better understanding of the interaction of workers' 
129.24 	compensation, the availability and cost of health insurance coverage upon retirement or 
129.25 	reemployment, the application process for and amount of duty disability benefits, the ability 
129.26 	of public employers to continue to offer health insurance coverage to duty-disabled and 
129.27 	retired employees, and the federally provided benefits for public safety officers.
129.28 		Subd. 3.Work group established; purpose. The executive director must convene a 
129.29 	work group for the purpose of recommending legislation that would:
129.30 	(1) reform duty disability for members of the police and fire plan; and
129.31 	(2) ensure that members of the police and fire plan who become duty disabled or retire 
129.32 	have access to affordable health insurance coverage until Medicare eligibility.
129.33 		Subd. 4.Membership. (a) The members of the work group are the following:
130.1 	(1) one representative from the Minnesota Police and Peace Officers Association;
130.2 	(2) one representative from the Minnesota Professional Fire Fighters Association;
130.3 	(3) one representative from Law Enforcement Labor Services;
130.4 	(4) one representative from the League of Minnesota Cities;
130.5 	(5) one representative from the Association of Minnesota Counties;
130.6 	(6) one representative from the Minnesota Inter-County Association;
130.7 	(7) one representative from the Coalition of Greater Minnesota Cities;
130.8 	(8) one representative from the Minnesota Chiefs of Police Association;
130.9 	(9) one representative from the Minnesota State Fire Chiefs Association;
130.10 	(10) one representative from the Minnesota Sheriffs' Association;
130.11 	(11) the executive director of the Public Employees Retirement Association or the 
130.12 	executive director's designee;
130.13 	(12) the commissioner of public safety or the commissioner's designee;
130.14 	(13) the commissioner of labor and industry or the commissioner's designee;
130.15 	(14) the assistant commissioner of the Workers' Compensation Division of the Department 
130.16 	of Labor and Industry or the assistant commissioner's designee;
130.17 	(15) one designee of the commissioner of management and budget with expertise in the 
130.18 	public employees insurance program and the state employee group insurance program; and
130.19 	(16) legislators who are members of the commission and who commit to attending most 
130.20 	meetings of the work group.
130.21 	(b) Each of the organizations or agencies specified in paragraph (a) may designate an 
130.22 	alternate who is entitled to participate in meetings of the work group along with the 
130.23 	designated representative. The co-chairs may establish rules regarding the participation of 
130.24 	alternates in meetings as necessary to ensure that all representatives have the opportunity 
130.25 	to speak.
130.26 	(c) The executive director may invite others to participate in one or more meetings of 
130.27 	the work group.
130.28 	(d) Each organization and agency specified in paragraph (a) must provide the executive 
130.29 	director with the names and contact information for the representative and alternate who 
131.1 	will serve on the work group by June 19, 2026. Legislators who wish to serve on the work 
131.2 	group must notify the executive director by June 19, 2026.
131.3 		Subd. 5.Mandate. (a) Legislation recommended by the work group must address each 
131.4 	topic in paragraphs (b) to (h), or the work group must explain in an accompanying report 
131.5 	the consideration given to the topic and the reasons the legislation does not address the 
131.6 	topic.
131.7 	(b) Benefit adequacy. The work group must address the adequacy of the retirement, 
131.8 	medical, and other welfare-related benefits to disabled members of the police and fire plan 
131.9 	with the objective of establishing a comprehensive package of benefits.
131.10 	(c) Funding of the public safety officer's benefit account. To fund the public safety 
131.11 	officer's benefit account established under Minnesota Statutes, section 299A.42, the work 
131.12 	group must recommend options, including but not limited to:
131.13 	(1) requiring members of the police and fire plan to contribute a percentage of pay on 
131.14 	a pre-tax basis to the account;
131.15 	(2) requiring the Department of Public Safety to reimburse public employers under 
131.16 	Minnesota Statutes, section 299A.465, subdivision 4, if there is not sufficient money in the 
131.17 	account to satisfy all requests for reimbursement;
131.18 	(3) securing permanent funding for the account; and
131.19 	(4) requiring the State Board of Investment to invest the account and credit the account 
131.20 	with investment earnings and losses.
131.21 	(d) Affordable retiree health insurance coverage. To ensure affordable options for 
131.22 	providing health insurance coverage are available to retirees under the police and fire plan 
131.23 	during retirement, to age 65, the work group must recommend options, including but not 
131.24 	limited to:
131.25 	(1) allowing members of the police and fire plan during employment to contribute to an 
131.26 	account on a pre-tax basis to pay premiums, co-pays, and other costs of medical care during 
131.27 	retirement; and
131.28 	(2) allowing retirees to be covered by the state employee group insurance program from 
131.29 	retirement to age 65.
131.30 	(e) Duty disability definition, assessment, and process reform. To restructure the 
131.31 	procedures for assessing duty disability under the police and fire plan and continued health 
132.1 	insurance coverage during the period of disability, the work group must recommend options, 
132.2 	including but not limited to:
132.3 	(1) revising the definition of "duty disability" as defined in Minnesota Statutes, section 
132.4 	353.01, subdivision 41, as necessary to be consistent with this paragraph;
132.5 	(2) assessing the potential for fraudulent applications for duty disability benefits and 
132.6 	implementing measures that can be implemented to detect fraud;
132.7 	(3) requiring that duty disability applications be assessed by referring to the VA disability 
132.8 	schedule, which indicates the extent to which a disability impairs a member's ability to 
132.9 	perform the functions of the member's employment position, such that the percentage derived 
132.10 	from the VA disability schedule would be applied to both maximum benefits and the resulting 
132.11 	benefits are the duty disability and health insurance continuation benefits to which the 
132.12 	member is entitled;
132.13 	(4) requiring the decision on whether a member has a duty disability be based on a 
132.14 	medical assessment from a medical professional who is not treating the member for the 
132.15 	disability; and
132.16 	(5) the establishment of a duty disability review board to consider and determine 
132.17 	eligibility for duty disability benefits and continued health insurance coverage consisting 
132.18 	of one representative appointed by each of the following organizations:
132.19 	(i) Minnesota Chiefs of Police Association;
132.20 	(ii) Minnesota State Fire Chiefs Association;
132.21 	(iii) Minnesota Sheriffs' Association;
132.22 	(iv) Minnesota Police and Peace Officers Association;
132.23 	(v) Minnesota Professional Fire Fighters Association;
132.24 	(vi) Law Enforcement Labor Services;
132.25 	(vii) League of Minnesota Cities;
132.26 	(viii) Association of Minnesota Counties;
132.27 	(ix) Minnesota Board of Psychology; and
132.28 	(x) Minnesota Board of Medical Practice.
132.29 	The work group must provide a governance structure for the duty disability review board, 
132.30 	including its leadership, meeting schedule, voting and procedural rules, and a process for 
132.31 	reviewing cases and determine the review board's relationship to the Public Employees 
133.1 	Retirement Association, including the association's transfer of application and supporting 
133.2 	documentation to the review board on a confidential basis.
133.3 	(f) Report assessment. The work group must consider the following reports and address 
133.4 	key considerations, challenges, recommendations, and shortcomings identified in the reports 
133.5 	in the legislation recommended by the work group:
133.6 	(1) "Adequacy of Disability Benefits for Minnesota Police Officers: Final Report," 
133.7 	January 2023, prepared by numerous authors and presented to the Department of Labor and 
133.8 	Industry; and
133.9 	(2) "Evaluating PTSD claims in Minnesota's workers' compensation system: Findings 
133.10 	and recommendations," October 2025, prepared by numerous authors in collaboration with 
133.11 	the Department of Labor and Industry.
133.12 	(g) Psychological treatment assessment. The work group must assess the success of the 
133.13 	psychological condition treatment required under Minnesota Statutes, section 353.032, in 
133.14 	returning members of the police and fire plan to the workforce and whether the requirement 
133.15 	should be repealed in favor of other treatment options that are likely to have more success. 
133.16 	Options include but are not limited to contracting with resident treatment programs, such 
133.17 	as the IAFF Center of Excellence for Behavioral Health Treatment and Recovery.
133.18 	(h) Department of Public Safety reporting. The work group must assess the required 
133.19 	reporting by the commissioner of public safety under Minnesota Statutes, section 299A.42, 
133.20 	subdivision 2, and provide more specificity regarding the information that must be reported 
133.21 	and penalties if information is not reported by the due date in section 299A.42, subdivision 
133.22 	2.
133.23 		Subd. 6.Timely response by agencies. Upon the request of a co-chair of the work group 
133.24 	or the executive director, the commissioner of public safety, labor and industry, or 
133.25 	management and budget, or the executive director of the Public Employees Retirement 
133.26 	Association, as applicable, must promptly furnish the work group with any data requested 
133.27 	as the work group determines is necessary to fulfill its purpose.
133.28 		Subd. 7.Retention of experts. (a) The executive director, working with the co-chairs 
133.29 	of the work group, may retain the services of experts, including attorneys and consultants, 
133.30 	to advise the work group on topics on which no state agency personnel have expertise, 
133.31 	including but not limited to tax-deferred options for setting aside compensation to pay for 
133.32 	health insurance coverage during periods of duty disability or retirement and the application 
133.33 	of the VA disability schedule to injuries and illness.
134.1 	(b) With the consent of the chair, vice chair, or secretary of the commission, the executive 
134.2 	director may pay for the services of experts under paragraph (a) with money in the LPCR 
134.3 	account.
134.4 		Subd. 8.Recommendations; proposed legislation. (a) With the assistance of the 
134.5 	executive director, the work group must prepare proposed legislation that implements the 
134.6 	recommendations of the work group. If the work group recommends more than one approach, 
134.7 	the work group must provide alternative legislation.
134.8 	(b) The executive director must submit the recommendations of the work group, along 
134.9 	with proposed legislation that implements the recommendations, to the commission by 
134.10 	March 1, 2027, or the date all members of the commission have been appointed for the 
134.11 	2027-2028 biennium, whichever is later.
134.12 		Subd. 9.Meetings; chair; administrative support. (a) The executive director must 
134.13 	convene the first meeting of the work group by June 30, 2026.
134.14 	(b) The members of the work group must elect two co-chairs at the first meeting. The 
134.15 	co-chairs are not required to be members of the work group.
134.16 	(c) Meetings may be conducted remotely or in person or a combination of remotely and 
134.17 	in person.
134.18 	(d) Commission staff must provide meeting space, if needed, and administrative support 
134.19 	to the co-chairs of the work group.
134.20 		Subd. 10.Compensation; lobbying; retaliation. (a) Members of the work group serve 
134.21 	without compensation.
134.22 	(b) Participation in the work group is not lobbying under Minnesota Statutes, chapter 
134.23 	10A.
134.24 	(c) An individual's employer or an organization or association of which an individual 
134.25 	is a member must not retaliate against the individual because of the individual's participation 
134.26 	in the work group.
134.27 		Subd. 11.Expiration. The work group expires June 30, 2028.

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

135.1 	Sec. 3. AUTHORIZING USE OF MONEY IN THE LCPR ACCOUNT.
 135.2 	(a) For purposes of this section, the terms used in section 1 have the same meaning when 
135.3 	the terms are used in this section and "work group" means the work group established under 
135.4 	section 1.
135.5 	(b) The LCPR account may be used:
135.6 	(1) for independent actuarial cost assessments for the commission; and
135.7 	(2) with the consent of the chair, vice chair, or secretary of the commission, to pay costs 
135.8 	incurred by the executive director, on behalf of the commission, to retain experts, including 
135.9 	attorneys and consultants, to advise the work group on topics on which no state agency 
135.10 	personnel have expertise, including but not limited to tax-deferred options for setting aside 
135.11 	compensation to pay for health insurance coverage during periods of duty disability or 
135.12 	retirement and the application of the VA disability schedule to injuries and illness based on 
135.13 	which a member of the police and fire plan has applied for duty disability benefits.

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

135.15 	ARTICLE 13
135.16 	SPECIAL LEGISLATION

135.17 	Section 1. MISSING IRAP ACCOUNT OF AN ELIGIBLE PERSON.
 135.18 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
135.19 	the meanings given.
135.20 	(b) "Board of trustees" has the meaning given in Minnesota Statutes, section 354B.20, 
135.21 	subdivision 11.
135.22 	(c) "IRAP" means the higher education individual retirement account plan established 
135.23 	by Minnesota Statutes, chapter 354B.
135.24 	(d) "MN State" means Minnesota State Colleges and Universities.
135.25 		Subd. 2.Location of IRAP account required. (a) Notwithstanding any state law to the 
135.26 	contrary, MN State must locate the IRAP account of the eligible person described in 
135.27 	paragraph (b) to which contributions deducted from the eligible person's pay in 1991 through 
135.28 	1994 were deposited or pay the eligible person an amount of $30,000.
135.29 	(b) The eligible person is a person who:
135.30 	(1) was employed by Winona State University from July 1, 1991, to June 30, 1996; and
136.1 	(2) has copies of pay stubs showing payroll deduction contributions to the IRAP dated 
136.2 	December 27, 1991; March 20, 1992; August 21, 1992; March 5, 1993; and April 16, 1993, 
136.3 	in amounts of $18.72 or $19.93, which must be considered as adequate proof that payroll 
136.4 	deduction contributions were taken each pay period beginning September 3, 1991, to October 
136.5 	31, 1994, for deposit into the eligible person's IRAP account.
136.6 	(c) No later than 60 days after the effective date of this section, the board of trustees 
136.7 	must either:
136.8 	(1) locate the eligible person's IRAP account to which payroll deduction contributions 
136.9 	were deposited and provide the eligible person with information regarding the individual 
136.10 	or entity holding the IRAP account, an accounting of the amounts contributed and investment 
136.11 	earnings thereon, and instructions on how the eligible person can access the account; or
136.12 	(2) pay the eligible person an amount equal to $30,000.

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

136.14 	Sec. 2. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION GENERAL 
136.15 	EMPLOYEES RETIREMENT PLAN; SERVICE CREDIT PURCHASE BY AN 
136.16 	ELIGIBLE EMPLOYEE.
 136.17 		Subdivision 1.Definitions. For purposes of this section, the following terms have the 
136.18 	meanings given:
136.19 	(1) "city" means the city of Minneapolis;
136.20 	(2) "executive director" means the executive director of the Public Employees Retirement 
136.21 	Association;
136.22 	(3) "fund" means the general employees retirement fund administered by the Public 
136.23 	Employees Retirement Association; and
136.24 	(4) "general plan" means the general employees retirement plan of the Public Employees 
136.25 	Retirement Association.
136.26 		Subd. 2.Authorization. (a) Notwithstanding any state law to the contrary, an eligible 
136.27 	person described in subdivision 3 is entitled to:
136.28 	(1) have the city pay the amount required under subdivision 5, paragraph (a), on the 
136.29 	eligible person's behalf; and
137.1 	(2) upon the city making the payments required under subdivision 5, paragraphs (a) and 
137.2 	(b), receive credit for allowable service in the general plan for the periods of service described 
137.3 	in subdivision 4.
137.4 	(b) Upon receiving the payments described in subdivision 5, the executive director must 
137.5 	credit the eligible person with allowable service for the periods of service described in 
137.6 	subdivision 4.
137.7 		Subd. 3.Eligible person. An eligible person is a person who:
137.8 	(1) was initially employed by the city on April 26, 2016, in the fleet services division 
137.9 	of the public works department;
137.10 	(2) received salary for periods of employment with the city that occurred beginning May 
137.11 	29, 2016, through November 4, 2022, and during portions of those periods of employment 
137.12 	the city failed to deduct employee contributions and make employer contributions as required 
137.13 	by Minnesota Statutes, section 353.27; and
137.14 	(3) terminated employment with the city on November 4, 2022.
137.15 		Subd. 4.Periods of uncredited prior service. The periods of uncredited prior service 
137.16 	available for purchase are:
137.17 	(1) May 29, 2016, through October 15, 2016;
137.18 	(2) April 11, 2017, through October 10, 2017; and
137.19 	(3) April 27, 2018, through November, 24, 2018.
137.20 		Subd. 5.Payment by employer. (a) On behalf of the eligible person, the city must pay 
137.21 	to the fund an amount equal to the total amount of employee contributions that would have 
137.22 	been deducted from the eligible person's salary and paid to the fund based on the eligible 
137.23 	person's salary for each period of employment described in subdivision 4, plus interest 
137.24 	compounded annually at the applicable annual rate or rates specified in Minnesota Statutes, 
137.25 	section 356.59, subdivision 3, from the date each employee contribution deduction should 
137.26 	have been paid until the date the payment is made.
137.27 	(b) The city must pay to the fund an amount equal to the total amount of employer 
137.28 	contributions that the city would have made to the fund based on the eligible person's salary 
137.29 	for each period of employment described in subdivision 4, plus interest compounded annually 
137.30 	at the applicable annual rate or rates specified in Minnesota Statutes, section 356.59, 
137.31 	subdivision 3, from the date each employer contribution should have been paid until the 
137.32 	date the payment is made.
138.1 	(c) The executive director must determine the amount of the payments required under 
138.2 	paragraphs (a) and (b) and notify the city and the eligible person regarding the amount and 
138.3 	the basis for determining the amount.
138.4 	(d) The city must make the payments required under paragraphs (a) and (b) in a lump 
138.5 	sum no later than 60 days after the date on which the executive director notifies the city 
138.6 	under paragraph (c).
138.7 		Subd. 6.Collection of unpaid amounts. If the city fails to make all of the payments 
138.8 	required by subdivision 5, the executive director must follow the procedures in Minnesota 
138.9 	Statutes, section 353.28, subdivision 6, to collect the amount not paid.

138.10 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective upon approval 
138.11 	by the Minneapolis City Council and compliance with Minnesota Statutes, section 645.021.

138.12 	ARTICLE 14
138.13 	STATE BOARD OF INVESTMENT

138.14 	Section 1. Minnesota Statutes 2025 Supplement, section 11A.04, is amended to read:
138.15 	11A.04 DUTIES AND POWERS; APPROPRIATION.
138.16 	The state board shall:
138.17 	(1) Act as trustees for each fund for which it invests or manages money in accordance 
138.18 	with the standard of care set forth in section 11A.09 if state assets are involved and in 
138.19 	accordance with chapter 356A if pension assets are involved.
138.20 	(2) Formulate policies and procedures deemed necessary and appropriate to carry out 
138.21 	its functions. Procedures adopted by the state board must allow fund beneficiaries and 
138.22 	members of the public to become informed of proposed board actions. Procedures and 
138.23 	policies of the state board are not subject to the Administrative Procedure Act.
138.24 	(3) Employ an executive director as provided in section 11A.07.
138.25 	(4) Employ Retain investment advisors and consultants as it deems necessary.
138.26 	(5) Prescribe policies concerning personal investments of all employees of the state 
138.27 	board to prevent conflicts of interest.
138.28 	(6) Maintain a record of its proceedings.
138.29 	(7) As it deems necessary, establish advisory committees subject to section 15.059 to 
138.30 	assist the state board in carrying out its duties.
139.1 	(8) Not permit state funds to be used for the underwriting or direct purchase of municipal 
139.2 	securities from the issuer or the issuer's agent.
139.3 	(9) Direct the commissioner of management and budget to sell property other than money 
139.4 	that has escheated to the state when the state board determines that sale of the property is 
139.5 	in the best interest of the state. Escheated property must be sold to the highest bidder in the 
139.6 	manner and upon terms and conditions prescribed by the state board.
139.7 	(10) Undertake any other activities necessary to implement the duties and powers set 
139.8 	forth in this section.
139.9 	(11) Establish a formula or formulas to measure management performance and return 
139.10 	on investment. Public pension funds in the state shall utilize the formula or formulas 
139.11 	developed by the state board.
139.12 	(12) Except as otherwise provided in article XI, section 8, of the Constitution of the state 
139.13 	of Minnesota, employ retain, at its discretion, qualified private external firms to invest and,
139.14 	manage, or provide services with respect to the assets of funds over which the state board 
139.15 	has investment management responsibility. There is annually appropriated to the state board, 
139.16 	from the assets of the funds for which the state board utilizes a private investment manager, 
139.17 	sums sufficient to pay the costs of employing private firms. Each year, by January 15, the 
139.18 	board shall report to the governor and legislature on the cost and the investment The state 
139.19 	board must include in the report required under section 11A.07, subdivision 4, clause (8), 
139.20 	the management fees paid under this clause and the performance of each investment manager 
139.21 	employed retained by the state board.
139.22 	(13) Adopt an investment policy statement that includes investment objectives, asset 
139.23 	allocation, and the investment management structure for the retirement fund assets under 
139.24 	its control. The statement may be revised at the discretion of the state board. The state board 
139.25 	shall seek the advice of the council regarding its investment policy statement. Adoption of 
139.26 	the statement is not subject to chapter 14.
139.27 	(14) Adopt a compensation plan setting the terms and conditions of employment for 
139.28 	unclassified employees of the state board pursuant to section 43A.18, subdivision 3b.
139.29 	(15) Contract, as necessary, with the board of trustees of the Minnesota State Colleges 
139.30 	and Universities System for the provision of investment review and selection services under 
139.31 	section 354B.25, subdivision 3, and arrange for the receipt of payment for those services.
139.32 	There is annually appropriated to the state board, from the assets of the funds for which 
139.33 	the state board provides investment services, sums sufficient to pay the costs of all necessary
140.1 	expenses for the administration of the state board, including any fees or expenses charged 
140.2 	by advisors, consultants, or external firms. These sums will be deposited in the State Board 
140.3 	of Investment operating account, which must be established by the commissioner of 
140.4 	management and budget in the special revenue fund.

140.5 	Sec. 2. Minnesota Statutes 2025 Supplement, section 11A.07, subdivision 4, is amended 
140.6 	to read:
140.7 		Subd. 4.Duties and powers. The executive director, at the direction of the state board, 
140.8 	shall:
140.9 	(1) plan, direct, coordinate, and execute administrative and investment functions in 
140.10 	conformity with the policies and directives of the state board and the requirements of this 
140.11 	chapter and of chapter 356A;
140.12 	(2) prepare and submit biennial and annual budgets to the state board and with the 
140.13 	approval of the state board submit the budgets to the Department of Management and Budget;
140.14 	(3) employ professional and clerical staff as necessary;
140.15 	(4) report to the state board on all operations under the executive director's control and 
140.16 	supervision;
140.17 	(5) maintain accurate and complete records of securities transactions and official 
140.18 	activities;
140.19 	(6) establish a policy, which is subject to state board approval, relating to the purchase 
140.20 	and sale of securities on the basis of competitive offerings or bids;
140.21 	(7) cause securities acquired to be kept in the custody of the commissioner of management 
140.22 	and budget or other depositories consistent with chapter 356A, as the state board deems 
140.23 	appropriate;
140.24 	(8) prepare and file with the director of the Legislative Reference Library a report 
140.25 	summarizing the activities of the state board, the council, and the executive director during 
140.26 	the preceding fiscal year;
140.27 	(9) include on the state board's website its annual report and an executive summary of 
140.28 	its quarterly reports;
140.29 	(10) require state officials from any department or agency to produce and provide access 
140.30 	to any financial documents the state board deems necessary in the conduct of its investment 
140.31 	activities;
141.1 	(11) with respect to any fund for which the state board provides investment services, 
141.2 	modify the billing procedure or apportionment of expenses under subdivision 5 to the extent 
141.3 	the executive director determines is appropriate or necessary, with any such modification 
141.4 	consistent with the applicable duties in this chapter and section 356A.04;
141.5 	(11) (12) receive and expend legislative appropriations; and
141.6 	(12) (13) undertake any other activities necessary to implement the duties and powers 
141.7 	set forth in this subdivision consistent with chapter 356A.

141.8 	Sec. 3. Minnesota Statutes 2024, section 11A.07, subdivision 5, is amended to read:
141.9 		Subd. 5.Apportionment of expenses. (a) The annual expenses incurred by the State 
141.10 	Board of Investment will state board, including any fees or expenses charged by advisors, 
141.11 	consultants, or external firms, must be apportioned among the state general fund, the 
141.12 	retirement funds administered by the Minnesota State Retirement System, Public Employees 
141.13 	Retirement Association, and Teachers Retirement Association, and all other funds as follows:
141.14 	for which the state board provides investment services, in accordance with this subdivision. 
141.15 	There is annually appropriated to the state board, from the assets of all funds for which the 
141.16 	state board provides investment services, sums sufficient to pay the apportioned expenses. 
141.17 	These sums must be deposited in the State Board of Investment operating account, which 
141.18 	must be established by the commissioner of management and budget in the special revenue 
141.19 	fund. Those sums must be apportioned as follows:
141.20 	(1) on a biennial basis, the State Board of Investment, in accordance with biennial budget 
141.21 	procedures established by the commissioner of management and budget, may request a 
141.22 	direct appropriation that represents the portion of the State Board of Investment expenses 
141.23 	necessary to provide investment services to the state general fund. This appropriation must 
141.24 	be deposited in the State Board of Investment operating account;
141.25 	(2) (1) the executive director shall first apportion the actualexpenses allocable solely 
141.26 	to a specific fund or in the case of multiple funds, among the funds proportionally based on 
141.27 	weighted average assets under management during the fiscal year; and
141.28 	(2) next, the executive director shall apportion the expenses incurred by the State Board 
141.29 	of Investment state board, less the charge to the state general fund charges apportioned 
141.30 	under clause (1) and accounting for any modification made pursuant to subdivision 4, clause 
141.31 	(11), among the funds whose assets are invested by the State Board of Investment, with the 
141.32 	exception of the state general fund, for which the state board provides investment services, 
141.33 	with such expenses allocated proportionally based on the weighted average assets under 
142.1 	management during the fiscal year. The amounts necessary to pay these charges are 
142.2 	apportioned from the investment earnings of each fund. Receipts must be credited to the 
142.3 	State Board of Investment operating account;
142.4 	(3) (b) The actual expenses apportioned and charged to the funds under paragraph (a), 
142.5 	with the exception of the state general fund and the retirement funds administered by the 
142.6 	Minnesota State Retirement System, Public Employees Retirement Association, and Teachers 
142.7 	Retirement Association, must be calculated, billed, and paid at least on a quarterly basis in 
142.8 	accordance with procedures for interdepartmental payments established by the commissioner 
142.9 	of management and budget; and. Sums received to pay the expenses must be deposited in 
142.10 	the operating account under section 11A.04.
142.11 	(4) (c) The annual estimated expenses to be incurred by the State Board of Investment
142.12 	state board that will be payable by the retirement funds administered by the Minnesota State 
142.13 	Retirement System, Public Employees Retirement Association, and Teachers Retirement 
142.14 	Association must be deposited in the State Board of Investment operating account under 
142.15 	section 11A.04 on or about the first business day of each fiscal year. A reconciliation of the 
142.16 	actual expenses allocable to each retirement fund compared to the applicable estimated costs
142.17 	expenses must occur at least annually at the end of each the fiscal year with any surplus or. 
142.18 	Any deficit being credited or debited to each of the respective funds. The State Board of 
142.19 	Investment must present a statement of accrued actual determined by such reconciliation 
142.20 	is due and payable to the State Board of Investment operating account promptly upon notice 
142.21 	of the amount due. Any fiscal year-end surplus may, at the executive director's discretion, 
142.22 	be retained in the operating account and credited against the following fiscal year's estimated
142.23 	expenses to of each respective retirement fund at the end of each quarter during each fiscal 
142.24 	year. The executive director must refund to the respective retirement fund any portion of 
142.25 	any surplus not credited against the following fiscal year's estimated expenses.

142.26 	Sec. 4. Laws 2025, chapter 39, article 1, section 8, is amended to read:

142.28142.27
	Sec. 8. STATE BOARD OF INVESTMENT
 	$
	139,000
	$
	139,000
-0-

143.1 	ARTICLE 15
143.2 	ADMINISTRATIVE, TECHNICAL, AND CONFORMING CHANGES RELATED 
143.3 	TO VOLUNTEER AND PAID ON-CALL FIREFIGHTERS

143.4 	Section 1. Minnesota Statutes 2024, section 6.496, is amended to read:
143.5 	6.496 VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS; STATE BOARD 
143.6 	OF INVESTMENT OPTIONS.
143.7 	(a) Annually, on or before March 1, the state auditor shall provide all volunteer firefighter 
143.8 	relief associations with recent and historic investment performance results of the various 
143.9 	accounts of the Minnesota supplemental investment fund and information on the process 
143.10 	and procedures for a firefighters firefighter relief association to utilize the Minnesota 
143.11 	supplemental investment fund as an investment option.
143.12 	(b) Annually, on or before March 1, the state auditor shall provide all volunteer firefighter 
143.13 	relief associations with basic information on the statewide lump-sum volunteer firefighter 
143.14 	plan, that a fire department has the option annually to join the retirement plan, and that, if 
143.15 	the fire department joins the retirement plan, future asset investments would be the 
143.16 	responsibility of the State Board of Investment.
143.17 	(c) The information provision required by paragraphs (a) and (b) may be provided in an 
143.18 	electronic or other format if the state auditor determines that the format is reasonably 
143.19 	accessible by a preponderance of volunteer firefighter relief associations.

143.20 	Sec. 2. Minnesota Statutes 2024, section 11A.17, subdivision 1, is amended to read:
143.21 		Subdivision 1.Purpose; accounts; continuation. (a) The purpose of the supplemental 
143.22 	investment fund is to provide an investment vehicle for the assets of various public retirement 
143.23 	plans and funds.
143.24 	(b) The state board shall determine and make available investment accounts within the 
143.25 	supplemental investment fund. These accounts shall include an appropriate array of 
143.26 	diversified investment options for participants of the public retirement plans under 
143.27 	subdivision 5.
143.28 	(c) The assets of the supplemental investment fund must be invested by the state board 
143.29 	in types of investments permitted under section 11A.24.
143.30 	(d) The state board shall make available a volunteer firefighter account for the statewide 
143.31 	lump-sum volunteer firefighter plan under section 353G.02.

144.1 	Sec. 3. Minnesota Statutes 2024, section 144F.01, subdivision 2, is amended to read:
144.2 		Subd. 2.Authority to establish. (a) Two or more political subdivisions may establish, 
144.3 	by resolution of their governing bodies, a special taxing district to provide fire protection 
144.4 	or emergency medical services, or both, in the area of the district, comprising the jurisdiction 
144.5 	of each of the political subdivisions forming the district. For a county that participates in 
144.6 	establishing a district, the county's jurisdiction comprises the unorganized territory of the 
144.7 	county that it designated in its resolution for inclusion in the district. The area of the special 
144.8 	taxing district need not be contiguous or its boundaries continuous.
144.9 	(b) Before establishing a district under this section, the participating political subdivisions 
144.10 	must enter into an agreement that specifies how any liabilities, other than debt issued under 
144.11 	subdivision 6, and assets of the district will be distributed if the district is dissolved. The 
144.12 	agreement may also include other terms, including a method for apportioning the levy of 
144.13 	the district among participating political subdivisions under subdivision 4, paragraph (b), 
144.14 	as the political subdivisions determine appropriate. The agreement must be adopted no later 
144.15 	than upon passage of the resolution establishing the district under paragraph (a), but may 
144.16 	be later amended by agreement of each of the political subdivisions participating in the 
144.17 	district.
144.18 	(c) If two or more political subdivisions that currently operate separate fire departments 
144.19 	seek to merge fire departments into one fire department, or if a political subdivision with 
144.20 	an existing fire department requests to join a special taxing district with an established fire 
144.21 	department, the resolution under paragraph (a) or agreement under paragraph (b) must 
144.22 	specify which, if any, volunteer firefighter pension planrelief association or account in the 
144.23 	statewide volunteer firefighter plan is associated with the district. A special taxing district 
144.24 	that operates a fire department under this section may be associated with only one firefighters
144.25 	firefighter relief association or one account in the statewide volunteer firefighter plan at one 
144.26 	time.
144.27 	(d) If the special taxing district includes the operation of a fire department, it must file 
144.28 	its resolution establishing the fire protection special taxing district, and any agreements 
144.29 	required for the establishment of the special taxing district, with the commissioner of revenue, 
144.30 	including any subsequent amendments. If the resolution or agreement does not include 
144.31 	sufficient information defining the fire department service area of the fire protection special 
144.32 	taxing district, the secretary of the district board must file a written statement with the 
144.33 	commissioner defining the fire department service area.

145.1 	Sec. 4. Minnesota Statutes 2025 Supplement, section 151.37, subdivision 12, is amended 
145.2 	to read:
145.3 		Subd. 12.Administration of opiate antagonists for drug overdose. (a) A licensed 
145.4 	physician, a licensed advanced practice registered nurse authorized to prescribe drugs 
145.5 	pursuant to section 148.235, or a licensed physician assistant may authorize the following 
145.6 	individuals to administer opiate antagonists, as defined in section 604A.04, subdivision 1:
145.7 	(1) an emergency medical responder registered pursuant to section 144E.27;
145.8 	(2) a peace officer as defined in section 626.84, subdivision 1, paragraphs (c) and (d);
145.9 	(3) correctional employees of a state or local political subdivision;
145.10 	(4) staff of community-based health disease prevention or social service programs;
145.11 	(5) a volunteer or paid on-call firefighter;
145.12 	(6) a nurse or any other personnel employed by, or under contract with, a postsecondary 
145.13 	institution or a charter, public, or private school; and
145.14 	(7) transit rider investment program personnel authorized under section 473.4075.
145.15 	(b) For the purposes of this subdivision, opiate antagonists may be administered by one 
145.16 	of these individuals only if:
145.17 	(1) the licensed physician, licensed physician assistant, or licensed advanced practice 
145.18 	registered nurse has issued a standing order to, or entered into a protocol with, the individual; 
145.19 	and
145.20 	(2) the individual has training in the recognition of signs of opiate overdose and the use 
145.21 	of opiate antagonists as part of the emergency response to opiate overdose.
145.22 	(c) Nothing in this section prohibits the possession and administration of naloxone 
145.23 	pursuant to section 604A.04.
145.24 	(d) Notwithstanding section 148.235, subdivisions 8 and 9, a licensed practical nurse is 
145.25 	authorized to possess and administer according to this subdivision an opiate antagonist in 
145.26 	a school setting.

145.27 	Sec. 5. Minnesota Statutes 2025 Supplement, section 181.101, is amended to read:
145.28 	181.101 WAGES; HOW OFTEN PAID.
145.29 	(a) Except as provided in paragraph (b), every employer must pay all wages, including 
145.30 	salary, earnings, and gratuities earned by an employee at least once every 31 days and all 
146.1 	commissions earned by an employee at least once every three months, on a regular payday 
146.2 	designated in advance by the employer regardless of whether the employee requests payment 
146.3 	at longer intervals. Unless paid earlier, the wages earned during the first half of the first 
146.4 	31-day pay period become due on the first regular payday following the first day of work. 
146.5 	If wages or commissions earned are not paid, the commissioner of labor and industry or the 
146.6 	commissioner's representative may serve a demand for payment on behalf of an employee. 
146.7 	In addition to other remedies under section 177.27, if payment of wages is not made within 
146.8 	ten days of service of the demand, the commissioner may charge and collect the wages 
146.9 	earned at the employee's rate or rates of pay or at the rate or rates required by law, including 
146.10 	any applicable statute, regulation, rule, ordinance, government resolution or policy, contract, 
146.11 	or other legal authority, whichever rate of pay is greater, and a penalty in the amount of the 
146.12 	employee's average daily earnings at the same rate or rates for each day beyond the ten-day 
146.13 	limit following the demand. If payment of commissions is not made within ten days of 
146.14 	service of the demand, the commissioner may charge and collect the commissions earned 
146.15 	and a penalty equal to 1/15 of the commissions earned but unpaid for each day beyond the 
146.16 	ten-day limit. Money collected by the commissioner must be paid to the employee concerned. 
146.17 	This section does not prevent an employee from prosecuting a claim for wages. This section 
146.18 	does not prevent a school district, other public school entity, or other school, as defined 
146.19 	under section 120A.22, from paying any wages earned by its employees during a school 
146.20 	year on regular paydays in the manner provided by an applicable contract or collective 
146.21 	bargaining agreement, or a personnel policy adopted by the governing board. For purposes 
146.22 	of this section, "employee" includes a person who performs agricultural labor as defined in 
146.23 	section 181.85, subdivision 2. For purposes of this section, wages are earned on the day an 
146.24 	employee works. This section provides a substantive right for employees to the payment of 
146.25 	wages, including salary, earnings, and gratuities, as well as commissions, in addition to the 
146.26 	right to be paid at certain times.
146.27 	(b) An employer of a volunteer or paid on-call firefighter, as defined in section 424A.001, 
146.28 	subdivision 10 10a, a member of an organized first responder squad that is formally 
146.29 	recognized by a political subdivision in the state, or a volunteer ambulance driver or attendant 
146.30 	must pay all wages earned by the volunteer paid on-call firefighter, first responder, or 
146.31 	volunteer ambulance driver or attendant at least once every 31 days, unless the employer 
146.32 	and the employee mutually agree upon payment at longer intervals.

146.33 	Sec. 6. Minnesota Statutes 2024, section 299K.03, subdivision 3, is amended to read:
146.34 		Subd. 3.Appointed members. (a) The governor shall appoint 18 additional members 
146.35 	to the commission.
147.1 	(b) The 18 appointed members must include one representative each of fire chiefs, 
147.2 	professional firefighters, volunteer or paid on-call firefighters, fire marshals, law enforcement 
147.3 	personnel, emergency medical personnel, health professionals, wastewater treatment 
147.4 	operators, labor, emergency managers, and local elected officials, three representatives of 
147.5 	community groups or the public, and four representatives from business and industry, at 
147.6 	least one of whom must represent small business.
147.7 	(c) At least four of the appointed members must reside outside the metropolitan area, 
147.8 	as defined in section 473.121, subdivision 2.
147.9 	(d) The appointed members must be appointed, serve, and be compensated in the manner 
147.10 	provided in section 15.059.

147.11 	Sec. 7. Minnesota Statutes 2024, section 299N.02, subdivision 1, is amended to read:
147.12 		Subdivision 1.Membership. Notwithstanding any provision of chapter 15 to the contrary, 
147.13 	the Board of Firefighter Training and Education consists of the following members:
147.14 	(1) five members representing the Minnesota State Fire Department Association, four 
147.15 	of whom must be volunteer or paid on-call firefighters and one of whom may be a full-time 
147.16 	firefighter, appointed by the governor;
147.17 	(2) two members representing the Minnesota State Fire Chiefs Association, one of whom 
147.18 	must be a volunteer fire chief, appointed by the governor;
147.19 	(3) two members representing the Minnesota Professional Fire Fighters, appointed by 
147.20 	the governor;
147.21 	(4) two members representing Minnesota home rule charter and statutory cities, appointed 
147.22 	by the governor;
147.23 	(5) two members representing Minnesota towns, appointed by the governor;
147.24 	(6) the commissioner of public safety or the commissioner's designee; and
147.25 	(7) one public member not affiliated or associated with any member or interest represented 
147.26 	in clauses (1) to (6), appointed by the governor.
147.27 	The Minnesota State Fire Department Association shall recommend five persons to be the 
147.28 	members described in clause (1), the Minnesota State Fire Chiefs Association shall 
147.29 	recommend two persons to be the members described in clause (2), the Minnesota 
147.30 	Professional Fire Fighters shall recommend two persons to be the members described in 
147.31 	clause (3), the League of Minnesota Cities shall recommend two persons to be the members 
147.32 	described in clause (4), and the Minnesota Association of Townships shall recommend two 
148.1 	persons to be the members described in clause (5). In making the appointments the governor 
148.2 	shall try to achieve representation from all geographic areas of the state.

148.3 	Sec. 8. Minnesota Statutes 2024, section 352.98, subdivision 1, is amended to read:
148.4 		Subdivision 1.Plan created. This section must be administered by the executive director 
148.5 	of the system with the advice and consent of the board of directors. The executive director 
148.6 	shall establish a plan or plans, known as health care savings plans, through which an officer 
148.7 	or employee of the state or of a political subdivision, including officers or employees covered 
148.8 	by a plan or fund specified in chapter 353D, 354B, 354D, 424A, or section 356.20, 
148.9 	subdivision 2, may save to cover health care costs. For purposes of this section, a volunteer 
148.10 	or paid on-call firefighter is an employee. The executive director shall make available one 
148.11 	or more trusts, including a governmental trust or governmental trusts, authorized under the 
148.12 	Internal Revenue Code to be eligible for tax-preferred or tax-free treatment through which 
148.13 	employers and employees can save to cover health care costs.

148.14 	Sec. 9. Minnesota Statutes 2025 Supplement, section 353D.01, subdivision 2, is amended 
148.15 	to read:
148.16 		Subd. 2.Eligibility. (a) Eligibility to participate in the plan is available to:
148.17 	(1) any elected or appointed local government official of a governmental subdivision 
148.18 	who elects to participate in the plan under section 353D.02, subdivision 1, and who, for the 
148.19 	service rendered to a governmental subdivision, is not a member of the association within 
148.20 	the meaning of section 353.01, subdivision 7;
148.21 	(2) physicians who, if they did not elect to participate in the plan under section 353D.02, 
148.22 	subdivision 2, would meet the definition of member under section 353.01, subdivision 7;
148.23 	(3) basic and advanced life-support emergency medical service personnel who are 
148.24 	employed by any public ambulance service that elects to participate under section 353D.02, 
148.25 	subdivision 3;
148.26 	(4) members of a municipal rescue squad associated with the city of Litchfield in Meeker 
148.27 	County, or of a county rescue squad associated with Kandiyohi County, if an independent 
148.28 	nonprofit rescue squad corporation, incorporated under chapter 317A, performing emergency 
148.29 	management services, and if not affiliated with a fire department or ambulance service and 
148.30 	if its members are not eligible for membership in that fire department's or ambulance service's 
148.31 	relief association or comparable pension plan;
149.1 	(5) members of the municipal rescue squad associated with the city of Eden Valley in 
149.2 	Stearns and Meeker Counties who are not eligible for membership in the police and fire 
149.3 	retirement plan or a firefighter relief association affiliated with the city and who elect to 
149.4 	participate in the plan under section 353D.02, subdivision 4, paragraph (b);
149.5 	(6) employees of the Port Authority of the city of St. Paul who elect to participate in the 
149.6 	plan under section 353D.02, subdivision 5, and who are not members of the association 
149.7 	under section 353.01, subdivision 7;
149.8 	(7) city managers who elected to be excluded from the general employees retirement 
149.9 	plan of the association under section 353.028 and who elected to participate in the public 
149.10 	employees defined contribution plan under section 353.028, subdivision 3, paragraph (b);
149.11 	(8) volunteer or emergency paid on-call firefighters serving in a municipal fire department 
149.12 	or an independent nonprofit firefighting corporation who are not covered by the police and 
149.13 	fire retirement plan and who are not covered by or a firefighters firefighter relief association 
149.14 	and who elect to participate in the public employees defined contribution plan;
149.15 	(9) any elected county sheriff who is a former member of the police and fire plan, is 
149.16 	receiving a retirement annuity as provided under section 353.651, and does not have previous 
149.17 	employment with the county for which the sheriff was elected; and
149.18 	(10) persons appointed to serve on a board or commission of a governmental subdivision 
149.19 	or an instrumentality thereof.
149.20 	(b) Individuals otherwise eligible to participate in the plan under this subdivision who 
149.21 	are currently covered by a public or private pension plan because of their employment or 
149.22 	provision of services are not eligible to participate in the plan.
149.23 	(c) A former participant is a person who has terminated eligible employment or service 
149.24 	and has not withdrawn the value of the person's individual account.

149.25 	Sec. 10. Minnesota Statutes 2025 Supplement, section 353D.02, subdivision 7, is amended 
149.26 	to read:
149.27 		Subd. 7.Certain Volunteer or paid on-call firefighters. Volunteer or paid on-call 
149.28 	firefighters who are serving as members of a municipal fire department or an independent 
149.29 	nonprofit firefighting corporation and who are not covered for that firefighting service by 
149.30 	the public employees police and fire retirement plan under sections 353.63 to 353.68, by a 
149.31 	firefighters relief association under chapter 424A, or by the statewide volunteer firefighter 
149.32 	retirement plan under chapter 353G may elect to participate in the plan within the first 30 
149.33 	days of commencing service by completing and signing a membership election on a form 
150.1 	prescribed by the executive director of the association. The membership election must be 
150.2 	filed with the association within 60 days of commencing service. An eligible firefighter's 
150.3 	election is irrevocable. No employer contribution is payable by the fire department or the 
150.4 	firefighting corporation unless the municipal governing body or the firefighting corporation 
150.5 	governing body, whichever applies, ratifies the membership election.

150.6 	Sec. 11. Minnesota Statutes 2024, section 353D.03, subdivision 6, is amended to read:
150.7 		Subd. 6.Volunteer or paid on-call firefighters. (a) Unless paragraph (b) applies, a 
150.8 	volunteer or emergency paid on-call firefighter who elects to participate in the plan shall 
150.9 	contribute at least 7.5 percent of any compensation received for firefighting services.
150.10 	(b) If the municipality or the independent nonprofit firefighting corporation ratified the 
150.11 	election of plan coverage under section 353D.02, subdivision 6, the volunteer or paid on-call 
150.12 	firefighter and the employing unit shall contribute in total an amount equal at least to 7.5 
150.13 	percent of any compensation received for firefighting services.

150.14 	Sec. 12. Minnesota Statutes 2024, section 353G.18, subdivision 4, is amended to read:
150.15 		Subd. 4.Termination procedures. (a) The participation of a departing entity in the plan 
150.16 	and the coverage of the departing firefighters by the plan shall must cease as of the date the 
150.17 	requirements in this subdivision are completed and all assets credited to the entity's account 
150.18 	are distributed.
150.19 	(b) The governing board of the departing entity shall must adopt the resolutions under 
150.20 	subdivision 5 and deliver the resolutions to the executive director.
150.21 	(c) The executive director shall must:
150.22 	(1) fully vest all departing firefighters as of the termination date and consider each 
150.23 	departing firefighter 100 percent vested in the pension benefit accrued by the departing 
150.24 	firefighter under the entity's account as of the termination date;
150.25 	(2) determine the present value of each departing firefighter's accrued benefit as of the 
150.26 	termination date, taking into account the benefit level under section 353G.11 or otherwise 
150.27 	in effect for the departing firefighter as determined by the executive director;
150.28 	(3) determine, as of the termination date, the value of accrued liabilities, including 
150.29 	administrative expenses incurred or reasonably anticipated to be incurred through the 
150.30 	distribution date, and the value of assets attributable to the entity's account; and
151.1 	(4) to the extent necessary to minimize the risk of investment losses between the 
151.2 	termination date and the distribution date, reinvest the assets credited to the entity's account 
151.3 	in low-risk investments.
151.4 	(d) If the entity's account has assets in excess of accrued liabilities, the executive director 
151.5 	shall must allocate the excess among all active departing firefighters in the same proportion 
151.6 	that the present value of the accrued benefit for each active departing firefighter bears to 
151.7 	the total present value of the accrued benefits of all active departing firefighters, and each 
151.8 	active departing firefighter's benefit, as determined under paragraph (c), clause (2), shall
151.9 	must be increased by the active departing firefighter's share of the excess.
151.10 	(e) The executive director shall must, as soon as practicable after the termination date, 
151.11 	distribute to each departing firefighter, regardless of whether the departing firefighter has 
151.12 	attained age 50, the firefighter's benefit as calculated by the executive director under 
151.13 	paragraphs (c) and (d). The distribution shall must be made in a lump sum, either as a 
151.14 	payment to the departing firefighter or as a direct rollover, if elected by the firefighter. If 
151.15 	the departing firefighter is deceased, then the firefighter's benefit shall must be paid to the 
151.16 	firefighter's survivor under section 353G.12 or as a direct rollover, if elected by the survivor.
151.17 	(f) The executive director shall must pay supplemental benefits under section 424A.10, 
151.18 	but only to the extent that the executive director will be reimbursed under section 424A.10, 
151.19 	subdivision 3.

151.20 	Sec. 13. Minnesota Statutes 2025 Supplement, section 356.215, subdivision 8, is amended 
151.21 	to read:
151.22 		Subd. 8.Actuarial assumptions. (a) The actuarial valuation must use the applicable 
151.23 	following investment return assumption:

151.25151.24
	plan
	investment return 
assumption
		
151.26	general state employees retirement plan
	7%
		
151.27	correctional state employees retirement plan
	7
		
151.28	State Patrol retirement plan
	7
		
151.29
151.30
151.31	legislators retirement plan, and for the 
constitutional officers calculation of total plan 
liabilities
	0
		
151.32	judges retirement plan
	7
		
151.33	general public employees retirement plan
	7
		
151.34	public employees police and fire retirement plan
	7
		
152.1
152.2	local government correctional service retirement 
plan
	7
		
152.3	teachers retirement plan
	7
		
152.4	St. Paul teachers retirement plan
	7
		
152.5	Bloomington Fire Department Relief Association
	6
		
152.6
152.7	local monthly benefit volunteer firefighter relief 
associations
	5
		
152.8
152.9	monthly benefit retirement plans in the statewide 
volunteer firefighter retirement plan
	6
		
152.10 	(b) The actuarial valuation for each of the covered retirement plans listed in section 
152.11 	356.415, subdivision 2, and the St. Paul Teachers Retirement Fund Association must take 
152.12 	into account the postretirement adjustment rate or rates applicable to the plan as specified 
152.13 	in section 354A.29, subdivision 7, or 356.415, whichever applies.
152.14 	(c) The actuarial valuation must use the applicable salary increase and payroll growth 
152.15 	assumptions found in the appendix to the standards for actuarial work. The appendix must 
152.16 	be updated whenever new assumptions have been approved or deemed approved under 
152.17 	subdivision 18.
152.18 	(d) The assumptions set forth in the appendix to the standards for actuarial work continue 
152.19 	to apply, unless a different salary assumption or a different payroll increase assumption:
152.20 	(1) has been proposed by the governing board of the applicable retirement plan;
152.21 	(2) is accompanied by the concurring recommendation of the actuary retained under 
152.22 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most 
152.23 	recent actuarial valuation report if section 356.214 does not apply; and
152.24 	(3) has been approved or deemed approved under subdivision 18.

152.25 	Sec. 14. Minnesota Statutes 2025 Supplement, section 356.215, subdivision 11, is amended 
152.26 	to read:
152.27 		Subd. 11.Amortization contributions. (a) The actuarial valuation of each pension plan 
152.28 	listed in subdivision 8, paragraph (a), other than the legislators retirement plan, the 
152.29 	Bloomington Fire Department Relief Association, and the local monthly benefit volunteer
152.30 	firefighter relief associations, must contain an exhibit indicating the additional annual 
152.31 	contribution sufficient to amortize on a level percent of payroll basis the unfunded actuarial 
152.32 	accrued liability resulting from any of the following changes, over the period specified for 
152.33 	that change, except that the pension plan's unfunded actuarial accrued liability as of July 1, 
152.34 	2024, must be amortized over a period that ends June 30, 2048:
153.1 	(1) experience gain or loss: 15 years;
153.2 	(2) assumption or method change: 20 years;
153.3 	(3) benefit change for active members: 15 years;
153.4 	(4) long-term benefit change for inactive members: 15 years;
153.5 	(5) short-term benefit change for inactive members: the number of years during which 
153.6 	the benefit change will be in effect; and
153.7 	(6) an annual contribution that is more or less than the actuarially determined contribution: 
153.8 	15 years.
153.9 	(b) The amortization periods specified in paragraph (a) apply:
153.10 	(1) unless the standards for actuarial work state otherwise;
153.11 	(2) except that, for the legislators retirement plan, the additional annual contribution 
153.12 	sufficient to amortize the unfunded actuarial accrued liability must be calculated on a level 
153.13 	dollar basis with an amortization period of one year; and
153.14 	(3) except that, for the State Patrol retirement plan, the public employees police and fire 
153.15 	retirement plan, and the Teachers Retirement Association, the unfunded actuarial accrued 
153.16 	liability resulting from benefit increases enacted in 2025 must be amortized over a period 
153.17 	that ends June 30, 2048.

153.18 	Sec. 15. Minnesota Statutes 2024, section 356.216, is amended to read:
153.19 	356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL MONTHLY 
153.20 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS.
153.21 	The provisions of section 356.215 that govern the contents of actuarial valuations apply 
153.22 	to the Bloomington Fire Department Relief Association and to any local monthly firefighters
153.23 	firefighter relief association required to make an actuarial report under this section, except 
153.24 	as follows:
153.25 	(1) in lieu of the amortization date specified in section 356.215, subdivision 11, the 
153.26 	appropriate amortization target date specified in clause (2) or section 424A.093, subdivision 
153.27 	4, paragraph (c), must be used in calculating any required amortization contribution;
153.28 	(2) for the Bloomington Fire Department Relief Association, any unfunded actuarial 
153.29 	accrued liability must be amortized on a level dollar basis by December 31 of the year 
153.30 	occurring 20 years after the year in which the unfunded actuarial accrued liability initially 
153.31 	occurred, and, if subsequent actuarial valuations for the Bloomington Fire Department Relief 
154.1 	Association indicate a net actuarial experience loss incurred during the year which ended 
154.2 	as of the day before the most recent actuarial valuation date, any unfunded actuarial accrued 
154.3 	liability due to that loss is to be amortized on a level dollar basis by December 31 of the 
154.4 	year occurring 20 years after the year in which the net actuarial experience loss occurred;
154.5 	(3) in addition to the tabulation of active members and annuitants provided for in section 
154.6 	356.215, subdivision 13, the prospective annual service pensions under the benefit plan for 
154.7 	active members must be reported;
154.8 	(4) actuarial valuations required under Laws 2013, chapter 111, article 5, section 39, 
154.9 	must be made annually and actuarial valuations required under section 424A.093, subdivision 
154.10 	2, must be made every four years or as frequently as required by generally accepted 
154.11 	accounting principles in the government sector, whichever frequency requirement is shorter;
154.12 	(5) the actuarial balance sheet showing accrued assets valued at market value, actuarial 
154.13 	accrued liabilities, and the unfunded actuarial accrued liability must include the following 
154.14 	required reserves:
154.15 	(i) for active members:
154.16 	(A) retirement benefits or service pensions;
154.17 	(B) disability benefits; and
154.18 	(C) survivors' benefits;
154.19 	(ii) for deferred annuitants' benefits;
154.20 	(iii) for former members without vested rights;
154.21 	(iv) for annuitants:
154.22 	(A) retirement annuities or service pensions;
154.23 	(B) disability annuities; and
154.24 	(C) survivor benefits.
154.25 	In addition to those required reserves, separate items must be shown for additional 
154.26 	benefits, if any, which may not be appropriately included in the reserves listed above; and
154.27 	(6) actuarial valuations are due to be filed with the state auditor by the first day of the 
154.28 	seventh month after the end of the fiscal year which the actuarial valuation covers.

155.1 	Sec. 16. Minnesota Statutes 2024, section 356.401, subdivision 3, is amended to read:
155.2 		Subd. 3.Covered retirement plans. The provisions of this section apply to the following 
155.3 	retirement plans:
155.4 	(1) the legislators retirement plan, established by chapter 3A, including constitutional 
155.5 	officers as specified in that chapter;
155.6 	(2) the general state employees retirement plan of the Minnesota State Retirement System, 
155.7 	established by chapter 352;
155.8 	(3) the correctional state employees retirement plan of the Minnesota State Retirement 
155.9 	System, established by chapter 352;
155.10 	(4) the State Patrol retirement plan, established by chapter 352B;
155.11 	(5) the unclassified state employees retirement program, established by chapter 352D;
155.12 	(6) the general employees retirement plan of the Public Employees Retirement 
155.13 	Association, established by chapter 353;
155.14 	(7) the public employees police and fire plan of the Public Employees Retirement 
155.15 	Association, established by chapter 353;
155.16 	(8) the public employees defined contribution plan, established by chapter 353D;
155.17 	(9) the local government correctional service retirement plan of the Public Employees 
155.18 	Retirement Association, established by chapter 353E;
155.19 	(10) the statewide lump-sum volunteer firefighter plan, established by chapter 353G;
155.20 	(11) the Teachers Retirement Association, established by chapter 354;
155.21 	(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
155.22 	(13) the individual retirement account plan, established by chapter 354B;
155.23 	(14) the higher education supplemental retirement plan, established by chapter 354C; 
155.24 	and
155.25 	(15) the judges retirement fund, established by chapter 490.

155.26 	Sec. 17. Minnesota Statutes 2024, section 356.611, subdivision 6, is amended to read:
155.27 		Subd. 6.Covered retirement plan. As used in this section, "covered retirement plan" 
155.28 	means any of the following plans:
156.1 	(1) the legislator's retirement plan, established by chapter 3A, including constitutional 
156.2 	officers as specified in that chapter;
156.3 	(2) the general state employees retirement plan of the Minnesota State Retirement System, 
156.4 	established by chapter 352;
156.5 	(3) the correctional state employees retirement plan of the Minnesota State Retirement 
156.6 	System, established by chapter 352;
156.7 	(4) the State Patrol retirement plan, established by chapter 352B;
156.8 	(5) the unclassified state employees retirement plan, established by chapter 352D;
156.9 	(6) the general employees retirement plan of the Public Employees Retirement 
156.10 	Association, established by chapter 353;
156.11 	(7) the public employees police and fire retirement plan of the Public Employees 
156.12 	Retirement Association, established by chapter 353;
156.13 	(8) the public employees defined contribution plan, established by chapter 353D;
156.14 	(9) the local government correctional service retirement plan of the Public Employees 
156.15 	Retirement Association, established by chapter 353E;
156.16 	(10) the statewide volunteer firefighter retirement plan, established by chapter 353G;
156.17 	(11) the Teachers Retirement Association, established by chapter 354;
156.18 	(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
156.19 	(13) the higher education individual retirement account plan, established by chapter 
156.20 	354B;
156.21 	(14) the higher education supplemental retirement plan, established by chapter 354C;
156.22 	(15) a retirement plan of a volunteer firefighter retirement relief association subject to 
156.23 	chapter 424A;
156.24 	(16) the judges retirement plan, established by chapter 490; or
156.25 	(17) the Bloomington Fire Department Relief Association governed by Laws 2013, 
156.26 	chapter 111, article 5, sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws 
156.27 	1965, chapter 446, as amended.

157.1 	Sec. 18. Minnesota Statutes 2024, section 356.635, subdivision 2a, is amended to read:
157.2 		Subd. 2a.Required distributions from defined contribution plans. (a) This section 
157.3 	applies to any covered retirement plan that is a defined contribution plan, including but not 
157.4 	limited to the following:
157.5 	(1) the unclassified state employees retirement plan, established by chapter 352D;
157.6 	(2) the public employees defined contribution plan, established by chapter 353D;
157.7 	(3) the defined contribution plan that is part of the statewide volunteer firefighter 
157.8 	retirement plan, established by chapter 353G;
157.9 	(4) the higher education individuals retirement account plan, established by chapter 
157.10 	354B;
157.11 	(5) the higher education supplemental retirement plan, established by chapter 354C; and
157.12 	(6) a defined contribution relief association, as defined under section 424A.001, 
157.13 	subdivision 1c.
157.14 	(b) If the participant dies before the required minimum distribution begins, the 
157.15 	participant's account must be distributed in a lump sum no later than as follows:
157.16 	(1) if the participant's account balance is payable to an eligible designated beneficiary, 
157.17 	the distribution must be made by December 31 of the calendar year immediately following 
157.18 	the calendar year in which the participant died. If the eligible designated beneficiary is the 
157.19 	surviving spouse, the surviving spouse may elect to delay payment until December 31 of 
157.20 	the calendar year in which the participant would have attained the participant's required 
157.21 	beginning date. Effective for calendar years beginning after December 31, 2023, A surviving 
157.22 	spouse who is the member's sole designated beneficiary may elect to be treated as if the 
157.23 	surviving spouse were the member as provided under section 401(a)(9)(B)(iv) of the Internal 
157.24 	Revenue Code;
157.25 	(2) if the participant's account balance is payable to a beneficiary that is not a designated 
157.26 	beneficiary, the participant's account must be distributed by December 31 of the calendar 
157.27 	year containing the fifth anniversary of the participant's death; or
157.28 	(3) if the participant's account balance is payable to a designated beneficiary who is not 
157.29 	an eligible designated beneficiary, the participant's account must be distributed by December 
157.30 	31 of the calendar year containing the tenth anniversary of the participant's death.
157.31 	(c) Upon the death of the participant after distribution of the participant's account balance 
157.32 	begins, any remaining portion of the participant's account balance shall continue to be 
158.1 	distributed at least as rapidly as under the method of distribution in effect at the time of the 
158.2 	participant's death, provided that the portion of the participant's account balance payable to 
158.3 	a designated beneficiary who is not an eligible designated beneficiary must be distributed 
158.4 	in its entirety by December 31 of the calendar year containing the tenth anniversary of the 
158.5 	participant's death.
158.6 	(d) Upon the death of an eligible designated beneficiary, or the attainment of the age of 
158.7 	majority of an eligible designated beneficiary who is a minor child of the participant, before 
158.8 	distribution of the participant's entire account balance under paragraph (b) or (c), the 
158.9 	remainder of the participant's account balance shall be distributed by December 31 of the 
158.10 	calendar year containing the tenth anniversary of the eligible designated beneficiary's death, 
158.11 	or by December 31 of the calendar year in which the child attains the age of majority plus 
158.12 	ten years, as applicable.
158.13 	(e) Notwithstanding any other provisions of this subdivision, a participant or beneficiary, 
158.14 	who would have been required to receive required minimum distributions in 2020 (or paid 
158.15 	in 2021 for the 2020 calendar year for a participant with a required beginning date of April 
158.16 	1, 2021) but for the enactment of section 401(a)(9)(I) of the Internal Revenue Code, and 
158.17 	who would have satisfied that requirement by receiving a distribution that satisfies the 
158.18 	required minimum distribution for 2020, will receive that distribution unless the participant 
158.19 	or beneficiary chooses not to receive the distribution. Solely for purposes of applying the 
158.20 	direct rollover provisions of section 356.633, such distributions will be treated as eligible 
158.21 	rollover distributions in 2020.

158.22 	Sec. 19. Minnesota Statutes 2024, section 356.65, subdivision 1, is amended to read:
158.23 		Subdivision 1.Definitions. For purposes of this section, unless the context clearly 
158.24 	indicates otherwise, each of the following terms has the meaning given to it:
158.25 	(a) "Public pension fund" means any public pension plan as defined in section 356.63, 
158.26 	paragraph (b), and any Minnesota firefighters firefighter relief association which is
158.27 	established under chapter 424A and governed under sections 424A.091 to 424A.096.
158.28 	(b) "Unclaimed public pension fund amounts" means any amounts representing 
158.29 	accumulated member contributions, any outstanding unpaid annuity, service pension or 
158.30 	other retirement benefit payments, including those made on warrants issued by the 
158.31 	commissioner of management and budget, which have been issued and delivered for more 
158.32 	than six months prior to the date of the end of the fiscal year applicable to the public pension 
158.33 	fund, and any applicable interest to the credit of:
159.1 	(1) an inactive or former member of a public pension fund who is not entitled to a defined 
159.2 	retirement annuity and who has not applied for a refund of those amounts within five years 
159.3 	after the last member contribution was made; or
159.4 	(2) a deceased inactive or former member of a public pension fund if no survivor is 
159.5 	entitled to a survivor benefit and no survivor, designated beneficiary or legal representative 
159.6 	of the estate has applied for a refund of those amounts within five years after the date of 
159.7 	death of the inactive or former member.

159.8 	Sec. 20. Minnesota Statutes 2024, section 356B.02, is amended to read:
159.9 	356B.02 DRAFTING PENSION AND RETIREMENT BILLS.
159.10 	(a) Notwithstanding section 3C.035, an agency or pension system intending to urge the 
159.11 	legislature to adopt a bill affecting the pension system, one or more plans administered by 
159.12 	the pension system, or one or more volunteer firefighter relief associations; or relating to 
159.13 	pensions or retirement shall deliver the drafting request for the bill to the executive director 
159.14 	of the commission no later than November 1 before the regular session of the legislature at 
159.15 	which adoption will be urged.
159.16 	(b) The executive director of the commission may accept a drafting request from an 
159.17 	agency or a pension system after November 1 if the executive director of the commission 
159.18 	determines that the request relates to a matter that could not reasonably have been foreseen 
159.19 	by November 1 or for which the requester provides other reasonable justification for delay.

159.20 	Sec. 21. Minnesota Statutes 2024, section 423A.02, subdivision 1b, is amended to read:
159.21 		Subd. 1b.Additional amortization state aid. (a) Annually, the commissioner shall 
159.22 	allocate the additional amortization state aid, if any, including any state aid in excess of the 
159.23 	limitation in subdivision 4, on the following basis:
159.24 	(1) 47.1 percent to the city of Minneapolis to defray the employer costs associated with 
159.25 	police and firefighter retirement coverage;
159.26 	(2) 25.8 percent as additional funding to support the minimum fire state aid for volunteer
159.27 	firefighter relief associations under section 477B.03, subdivision 5;
159.28 	(3) 12.9 percent to the city of Duluth to defray employer costs associated with police 
159.29 	and firefighter retirement coverage;
159.30 	(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the investment 
159.31 	performance requirement of paragraph (c) is met; and
160.1 	(5) 1.3 percent to the city of Virginia to defray the employer contribution under section 
160.2 	353.665, subdivision 8, paragraph (d).
160.3 	If there is no additional employer contribution under section 353.665, subdivision 8a, 
160.4 	certified under subdivision 1, paragraph (d), clause (2), with respect to the former 
160.5 	Minneapolis Police Relief Association and the former Minneapolis Fire Department Relief 
160.6 	Association, the commissioner shall allocate that 47.1 percent of the aid as follows: 49 
160.7 	percent to the Teachers Retirement Association, 21 percent to the St. Paul Teachers 
160.8 	Retirement Fund Association, and 30 percent as additional funding to support minimum 
160.9 	fire state aid for volunteer firefighter relief associations under section 477B.03, subdivision 
160.10 	5. If there is no employer contribution by the city of Virginia under section 353.665, 
160.11 	subdivision 8, paragraph (d), for the former Virginia Fire Department Relief Association 
160.12 	certified on or before June 30 by the executive director of the Public Employees Retirement 
160.13 	Association, the commissioner shall allocate that 1.3 percent of the aid as follows: 49 percent 
160.14 	to the Teachers Retirement Association, 21 percent to the St. Paul Teachers Retirement 
160.15 	Fund Association, and 30 percent as additional funding to support minimum fire state aid 
160.16 	for volunteer firefighter relief associations under section 477B.03, subdivision 5.
160.17 	(b) The allocation must be made by the commissioner of revenue on October 1 annually.
160.18 	(c) With respect to the St. Paul Teachers Retirement Fund Association, annually, if the 
160.19 	teacher's association five-year average time-weighted rate of investment return does not 
160.20 	equal or exceed the performance of a composite portfolio assumed passively managed 
160.21 	(indexed) invested ten percent in cash equivalents, 60 percent in bonds and similar debt 
160.22 	securities, and 30 percent in domestic stock calculated using the formula under section 
160.23 	11A.04, clause (11), the aid allocation to the retirement fund under this section ceases until 
160.24 	the five-year annual rate of investment return equals or exceeds the performance of that 
160.25 	composite portfolio.
160.26 	(d) The amounts required under this subdivision are the amounts annually appropriated 
160.27 	to the commissioner of revenue under section 477B.03, subdivision 5, paragraph (d), if any, 
160.28 	and the aid amounts in excess of the limitation in subdivision 4.

160.29 	Sec. 22. Minnesota Statutes 2024, section 423A.02, subdivision 3, is amended to read:
160.30 		Subd. 3.Reallocation of amortization state aid. (a) Seventy percent of the difference 
160.31 	between $5,720,000 and the current year amortization aid distributed under subdivision 1 
160.32 	that is not distributed for any reason to a municipality must be distributed by the 
160.33 	commissioner of revenue according to this paragraph. The commissioner shall distribute 
160.34 	60 percent of the amounts derived under this paragraph to the Teachers Retirement 
161.1 	Association, and 40 percent to the St. Paul Teachers Retirement Fund Association to fund 
161.2 	the unfunded actuarial accrued liabilities of the respective funds. These payments must be 
161.3 	made on July 15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or 
161.4 	the Teachers Retirement Association satisfies subdivision 5, eligibility for its portion of this 
161.5 	aid ceases. Amounts remaining in the undistributed balance account at the end of the 
161.6 	biennium if aid eligibility ceases cancel to the general fund.
161.7 	(b) In order to receive amortization aid under paragraph (a), before June 30 annually 
161.8 	Independent School District No. 625, St. Paul, must make an additional contribution of 
161.9 	$800,000 each year to the St. Paul Teachers Retirement Fund Association.
161.10 	(c) Thirty percent of the difference between $5,720,000 and the current year amortization 
161.11 	aid under subdivision 1 that is not distributed for any reason to a municipality must be 
161.12 	distributed under section 477B.03, subdivision 5, as additional funding to support a minimum 
161.13 	fire state aid amount for volunteer firefighter relief associations.

161.14 	Sec. 23. Minnesota Statutes 2024, section 424A.01, subdivision 3, is amended to read:
161.15 		Subd. 3.Status of nonmember volunteer firefighters. No person who is serving as a 
161.16 	firefighter in a fire department but who is not a member of the applicable firefighters relief 
161.17 	association is entitled to any service pension or ancillary benefits from the relief association.

161.18 	Sec. 24. Minnesota Statutes 2024, section 424B.10, subdivision 1b, is amended to read:
161.19 		Subd. 1b.Benefits. (a) The successor relief association following the consolidation of 
161.20 	two or more defined benefit relief associations must be a defined benefit relief association.
161.21 	(b) Notwithstanding any provision of section 424A.02, subdivision 3, to the contrary, 
161.22 	the initial service pension amount of the subsequent defined benefit relief association as of 
161.23 	the effective date of consolidation is either the service pension amount specified in clause 
161.24 	(1) or the service pension amounts specified in clause (2), as provided for in the consolidated 
161.25 	relief association's articles of incorporation or bylaws:
161.26 	(1) the highest dollar amount service pension amount of any prior firefighters relief 
161.27 	association in effect immediately before the consolidation initiation if the pension amount 
161.28 	was implemented consistent with section 424A.02; or
161.29 	(2) for service rendered by each individual volunteer or paid on-call firefighter before 
161.30 	consolidation, the service pension amount under the consolidating firefighters relief 
161.31 	association that the firefighter belonged to immediately before the consolidation if the 
161.32 	pension amount was implemented consistent with section 424A.02 and for service rendered 
162.1 	after the effective date of the consolidation, the highest dollar amount service pension of 
162.2 	any of the consolidating volunteer firefighters firefighter relief associations in effect 
162.3 	immediately before the consolidation if the pension amount was implemented consistent 
162.4 	with section 424A.02.
162.5 	(c) Any increase in the service pension amount beyond the amount implemented under 
162.6 	paragraph (a) must conform with the requirements and limitations of section 424A.02 and 
162.7 	sections 424A.091 to 424A.095.

162.8 	Sec. 25. Minnesota Statutes 2024, section 465.90, is amended to read:
162.9 	465.90 MUNICIPAL AUTHORITY TO PERMIT SOLICITATION BY 
162.10 	FIREFIGHTERS.
162.11 	Notwithstanding any law or ordinance to the contrary, a municipality may by resolution 
162.12 	permit full-time permanent firefighters employed by the municipality while on duty, or 
162.13 	volunteer or paid on-call firefighters serving the municipality while not on duty, to solicit 
162.14 	charitable contributions from motorists if the following conditions are met:
162.15 	(1) the solicitation is for only one charitable organization annually, and that charitable 
162.16 	organization is qualified under section 501(c)(3) of the Internal Revenue Code and is 
162.17 	registered as a charity under state law;
162.18 	(2) the solicitation does not occur for more than three days, whether or not consecutively, 
162.19 	in any calendar year; and
162.20 	(3) the charitable organization provides to the municipality proof of commercial general 
162.21 	liability insurance against claims for bodily injury and property damage if the injury or 
162.22 	damage occurs (i) on public streets, roads, or rights-of-way, or (ii) as a result of the solicitor's 
162.23 	activities. The insurance must have a limit of no less than $1,500,000 per occurrence and 
162.24 	an endorsement to the policy naming the municipality as an additional insured.

162.25 	Sec. 26. REVISOR INSTRUCTION.
 162.26 	(a) In Minnesota Statutes, the revisor of statutes shall change the terms "volunteer 
162.27 	firefighters relief associations," "volunteer firefighters' relief associations," "firefighters 
162.28 	relief associations," and "firefighters' relief associations" to "firefighter relief associations" 
162.29 	wherever the terms appear.
162.30 	(b) In Minnesota Statutes, the revisor of statutes shall change the terms "firefighters 
162.31 	relief association" and "firefighters' relief association" to "firefighter relief association" 
162.32 	wherever the terms appear.
163.1 	(c) The revisor shall make any necessary grammatical changes or changes to sentence 
163.2 	structure necessary to preserve the meaning of the text as a result of the changes.

163.3 	Sec. 27. EFFECTIVE DATE.
 163.4 	Sections 1 to 26 are effective the day following final enactment.

163.5 	ARTICLE 16
163.6 	MISCELLANEOUS TECHNICAL CORRECTIONS

163.7 	Section 1. Minnesota Statutes 2025 Supplement, section 299A.465, subdivision 1, is 
163.8 	amended to read:
163.9 		Subdivision 1.Officer or firefighter disabled in line of duty. (a) This subdivision 
163.10 	applies to any peace officer or firefighter:
163.11 	(1) who the Public Employees Retirement Association or the Minnesota State Retirement 
163.12 	System determines is eligible to receive a duty disability benefit pursuant to section 353.656
163.13 	or 352B.10, subdivision 1, respectively; or
163.14 	(2) who is a member of a local police or salaried firefighters relief association and 
163.15 	qualifies for a duty disability benefit under the terms of plans of the relief associations, and 
163.16 	the peace officer or firefighter has discontinued public service as a peace officer or firefighter 
163.17 	as a result of a disabling injury and has been determined, by the Public Employees Retirement 
163.18 	Association, to have otherwise met the duty disability criteria set forth in section 353.01, 
163.19 	subdivision 41.
163.20 	(b) Determinations made in accordance with paragraph (a) are binding on the peace 
163.21 	officer or firefighter, employer, and state. The determination must be made by the executive 
163.22 	director of the Public Employees Retirement Association or by the executive director of the 
163.23 	Minnesota State Retirement System, whichever applies, and is not subject to section 356.96, 
163.24 	subdivision 2. Upon making a determination, the executive director must provide written 
163.25 	notice to the peace officer or firefighter and the employer. The notice must include a written 
163.26 	statement of the reasons for the determination. If the notice is from the executive director 
163.27 	of the Minnesota State Retirement System, the notice must also include:
163.28 	(1) a notice that the person may petition for a review of the determination by requesting 
163.29 	that a contested case be initiated before the Office of Administrative Hearings, the cost of 
163.30 	which must be borne by the peace officer or firefighter and the employer; and
164.1 	(2) a statement that any person who does not petition for a review within 60 days is 
164.2 	precluded from contesting issues determined by the executive director in any other 
164.3 	administrative review or court procedure.
164.4 	If, prior to the contested case hearing, additional information is provided to support the 
164.5 	claim for duty disability as defined in section 352B.011, subdivision 7, the executive director 
164.6 	may reverse the determination without the requested hearing. If a hearing is held before the 
164.7 	Office of Administrative Hearings, the determination rendered by the judge conducting the 
164.8 	fact-finding hearing is a final decision and order under section 14.62, subdivision 2a, and 
164.9 	is binding on the applicable executive director, the peace officer or firefighter, employer, 
164.10 	and state. Review of a final determination made by the Office of Administrative Hearings 
164.11 	under this section may only be obtained by writ of certiorari to the Minnesota Court of 
164.12 	Appeals under sections 14.63 to 14.68. Only the peace officer or firefighter, employer, and 
164.13 	state have standing to participate in a judicial review of the decision of the Office of 
164.14 	Administrative Hearings.
164.15 	(c) The officer's or firefighter's employer must continue to provide health coverage and 
164.16 	pay for the coverage as required by paragraphs (d) to (g) for:
164.17 	(1) the officer or firefighter; and
164.18 	(2) the officer's or firefighter's dependents if the officer or firefighter was receiving 
164.19 	dependent coverage at the time of the injury under the employer's group health plan.
164.20 	(d) For an officer or firefighter who has applied for or been approved to receive benefits 
164.21 	under section 353.656prior to the date of enactment before May 24, 2025, or an officer or 
164.22 	firefighter who applies for and is approved for total and permanent duty disability benefits 
164.23 	under section 353.656, subdivision 1a, the employer is responsible for the continued payment 
164.24 	of the employer's contribution for health coverage of the officer or firefighter and, if 
164.25 	applicable, the officer's or firefighter's dependents. Coverage must continue for the officer 
164.26 	or firefighter and, if applicable, the officer's or firefighter's dependents until the officer or 
164.27 	firefighter reaches age 65 or, if deceased, would have reached age 65.
164.28 	(e) For an officer or firefighter approved to receive benefits under section 353.656 on 
164.29 	or after the date of enactment May 24, 2025, and who is not approved for total and permanent 
164.30 	duty disability benefits under section 353.656, subdivision 1a, the employer is responsible 
164.31 	for the continued payment of the employer's contribution for health coverage of the officer 
164.32 	or firefighter and, if applicable, the officer's or firefighter's dependents. Coverage must 
164.33 	continue:
165.1 	(1) for the officer or firefighter for a period of 60 months or, if earlier, until the officer 
165.2 	or firefighter reaches age 65; and
165.3 	(2) for the officer's or firefighter's dependents for a period of 60 months.
165.4 	(f) For an officer or firefighter who has applied for or been approved to receive benefits 
165.5 	under section 352B.10, subdivision 1, the employer is responsible for the continued payment 
165.6 	of the employer's contribution for health coverage of the officer or firefighter and, if 
165.7 	applicable, the officer's or firefighter's dependents. Coverage must continue for the officer 
165.8 	or firefighter and, if applicable, the officer's or firefighter's dependents until the officer or 
165.9 	firefighter reaches age 65 or, if deceased, would have reached age 65.
165.10 	(g) The employer is not required to continue health coverage for dependents after the 
165.11 	person is no longer a dependent.
165.12 	(h) An officer or firefighter who has applied for or been approved to receive benefits 
165.13 	under section 353.656 may affirmatively waive health coverage under this section but must 
165.14 	not receive any payment or other consideration from the employer in exchange for waiver 
165.15 	of the coverage. Any agreement entered into between an officer or firefighter who has 
165.16 	applied for or been approved to receive benefits under section 353.656 and the officer's or 
165.17 	firefighter's employer or the employer's agent providing for compensation for a waiver of 
165.18 	coverage under this section is void. Nothing in this subdivision shall be construed to render 
165.19 	void any agreement entered into prior to the date of enactment before May 24, 2025.
165.20 	(i) Once a duty disability determination is made pursuant to section 353.656, the employer 
165.21 	has no right to challenge and is prohibited from challenging the continuation and payment 
165.22 	of health coverage under this section.

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

165.24 	Sec. 2. Minnesota Statutes 2024, section 354A.29, subdivision 7, is amended to read:
165.25 		Subd. 7. Postretirement adjustments. (a) Except as set forth in paragraph (c), each 
165.26 	person who has been receiving an annuity or benefit under the articles of incorporation, the 
165.27 	bylaws, or this chapter, whose effective date of benefit commencement occurred on or 
165.28 	before July 1 of the calendar year immediately before the adjustment, is eligible to receive 
165.29 	an annual postretirement adjustment, effective as of each January 1, as follows:
165.30 	(1) there shall be no postretirement adjustment on January 1, 2019, and January 1, 2020; 
165.31 	and
166.1 	(2) the postretirement adjustment shall be one percent on January 1, 2021, and each 
166.2 	January 1 thereafter.
166.3 	(b) A postretirement adjustment is to be applied as a permanent increase to the regular 
166.4 	payment of each eligible member on January 1. For any eligible member whose effective 
166.5 	date of benefit commencement occurred after January 1 of the immediately preceding 
166.6 	calendar year, the amount of the postretirement adjustment must be reduced by 50 percent.
166.7 	(c) Each person who retires on or after July 1, 2024, is entitled to an annual postretirement 
166.8 	adjustment, effective as of each January 1, beginning with the year following the year in 
166.9 	which the member attains normal retirement age.
166.10 	(d) Paragraph (c) does not apply to members who retire under section 354A.31, 
166.11 	subdivision 6, paragraph (b) (c), or who retire when the member is at least age 62 and has 
166.12 	at least 30 years of service under section 354A.31, subdivision 7.

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

166.14 	Sec. 3. Minnesota Statutes 2025 Supplement, section 356.24, subdivision 1, is amended 
166.15 	to read:
166.16 		Subdivision 1.Restriction; exceptions. It is unlawful for a school district or other 
166.17 	governmental subdivision or state agency to levy taxes for or to contribute public funds to 
166.18 	a supplemental pension or deferred compensation plan that is established, maintained, and 
166.19 	operated in addition to a primary pension program for the benefit of the governmental 
166.20 	subdivision employees other than:
166.21 	(1) to a supplemental pension plan that was established, maintained, and operated before 
166.22 	May 6, 1971;
166.23 	(2) to a plan that provides solely for group health, hospital, disability, or death benefits;
166.24 	(3) to the individual retirement account plan established by chapter 354B;
166.25 	(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or 
166.26 	terminating employee;
166.27 	(5) to a deferred compensation plan defined in subdivision 3;
166.28 	(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges 
166.29 	and Universities and not covered by clause (5), to the supplemental retirement plan under 
166.30 	chapter 354C, if the supplemental plan coverage is provided for in a personnel policy or in 
166.31 	the collective bargaining agreement of the public employer with the exclusive representative 
166.32 	of the covered employees in an appropriate unit, in an amount matching employee 
167.1 	contributions on a dollar for dollar basis, but not to exceed an employer contribution of 
167.2 	$4,300 a year for each employee;
167.3 	(7) to a supplemental plan or to a governmental trust to save for postretirement health 
167.4 	care expenses qualified for tax-preferred treatment under the Internal Revenue Code, if the 
167.5 	supplemental plan coverage is provided for in a personnel policy or in the, collective 
167.6 	bargaining agreement, participation plan, or resolution of the governing body of a public 
167.7 	employer with the exclusive representative of the covered employees in an appropriate unit;
167.8 	(8) to the laborers national industrial pension fund or to a laborers local pension fund 
167.9 	for the employees of a governmental subdivision who are covered by a collective bargaining 
167.10 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
167.11 	rate, but not to exceed an employer contribution of $10,000 per year per employee;
167.12 	(9) to the plumbers and pipefitters national pension fund or to a plumbers and pipefitters 
167.13 	local pension fund for the employees of a governmental subdivision who are covered by a 
167.14 	collective bargaining agreement that provides for coverage by that fund and that sets forth 
167.15 	a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per 
167.16 	employee;
167.17 	(10) to the international union of operating engineers pension fund for the employees 
167.18 	of a governmental subdivision who are covered by a collective bargaining agreement that 
167.19 	provides for coverage by that fund and that sets forth a fund contribution rate, but not to 
167.20 	exceed an employer contribution of $10,000 per year per employee;
167.21 	(11) to the International Association of Machinists national pension fund for the 
167.22 	employees of a governmental subdivision who are covered by a collective bargaining 
167.23 	agreement that provides for coverage by that fund and that sets forth a fund contribution 
167.24 	rate, but not to exceed an employer contribution of $5,000 per year per employee;
167.25 	(12) for employees of United Hospital District, Blue Earth, to the state of Minnesota 
167.26 	deferred compensation program, if the employee makes a contribution, in an amount that 
167.27 	does not exceed the total percentage of covered salary under section 353.27, subdivisions 
167.28 	3 and 3a;
167.29 	(13) to the alternative retirement plans established by the Hennepin County Medical 
167.30 	Center under section 383B.914, subdivision 5;
167.31 	(14) to the International Brotherhood of Teamsters Central States pension plan for 
167.32 	fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who 
168.1 	are members of the International Brotherhood of Teamsters Local 638 by virtue of that 
168.2 	employment; or
168.3 	(15) to a supplemental plan organized and operated under the Internal Revenue Code, 
168.4 	as amended, that is wholly and solely funded by the employee's accumulated sick leave, 
168.5 	accumulated vacation leave, and accumulated severance pay.

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

168.7 	Sec. 4. Minnesota Statutes 2025 Supplement, section 423A.022, subdivision 2, is amended 
168.8 	to read:
168.9 		Subd. 2.Allocation. (a) Of the total amount appropriated as supplemental state aid:
168.10 	(1) 58.064 percent must be paid to the executive director of the Public Employees 
168.11 	Retirement Association for deposit in the public employees police and fire retirement fund 
168.12 	established by section 353.65, subdivision 1;
168.13 	(2) 35.484 percent must be allocated and paid as required by paragraphs (b) and (c), 
168.14 	respectively, to or on behalf of municipalities who qualify for supplemental state aid under 
168.15 	paragraph (d); and
168.16 	(3) 6.452 percent must be paid to the executive director of the Minnesota State Retirement 
168.17 	System for deposit in the state patrol retirement fund.
168.18 	(b) Supplemental state aid under paragraph (a), clause (2), must be allocated to each 
168.19 	municipality that qualifies for supplemental state aid under paragraph (d) in the same 
168.20 	proportion that the most recent amount of fire state aid paid under section 477B.04 for the 
168.21 	municipality bears to the most recent total fire state aid paid under section 477B.04 for all 
168.22 	municipalities other than municipalities solely employing firefighters with retirement 
168.23 	coverage by one or more pension plans under chapter 353.
168.24 	(c) Supplemental state aid under paragraph (a), clause (2), must be paid:
168.25 	(1) to the executive director of the Public Employees Retirement Association for each 
168.26 	municipality with a fire department that participates in the statewide volunteer firefighter 
168.27 	plan for deposit in the fund established by section 352G.02 353G.02, subdivision 3, and 
168.28 	credited to the fire department's account; and
168.29 	(2) with the balance to the treasurer of each municipality for transmittal within 30 days 
168.30 	of receipt to the treasurer of the applicable firefighters relief association for deposit in its 
168.31 	special fund.
169.1 	(d) A municipality qualifies for supplemental state aid under paragraph (a), clause (2), 
169.2 	if the municipality:
169.3 	(1) does not solely employ firefighters with retirement coverage provided by one or 
169.4 	more pension plans established under chapter 353; and
169.5 	(2) qualified to receive fire state aid in that calendar year.
169.6 	(e) For purposes of this section, the term "municipalities" includes independent nonprofit 
169.7 	firefighting corporations that participate in the statewide volunteer firefighter plan under 
169.8 	chapter 353G or with subsidiary firefighter relief associations operating under chapter 424A.

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

	ARTICLE 1	MINNESOTA STATE RETIREMENT SYSTEM........	Page.Ln 2.31	
	ARTICLE 2	PUBLIC EMPLOYEES RETIREMENT ASSOCIATION........	Page.Ln 8.12	
	ARTICLE 3	TEACHERS RETIREMENT ASSOCIATION; ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION........	Page.Ln 11.18	
	ARTICLE 4	PROBATION AND TELECOMMUNICATOR RETIREMENT SUBPLAN OF THE MSRS GENERAL STATE EMPLOYEES RETIREMENT PLAN........	Page.Ln 18.5	
	ARTICLE 5	LOCAL GOVERNMENTAL PROBATION AND TELECOMMUNICATOR RETIREMENT PLAN........	Page.Ln 27.19	
	ARTICLE 6	PROBATION AND TELECOMMUNICATOR PLANS; TRANSFERS FROM THE GENERAL FUND; TEMPORARY REDUCTION IN EMPLOYEE CONTRIBUTION RATES........	Page.Ln 70.7	
	ARTICLE 7	VOLUNTEER FIREFIGHTERS........	Page.Ln 71.4	
	ARTICLE 8	ALL PUBLIC PENSION PLANS........	Page.Ln 89.7	
	ARTICLE 9	MINNESOTA SECURE CHOICE RETIREMENT PROGRAM........	Page.Ln 109.5	
	ARTICLE 10	SUPPLEMENTAL PLANS........	Page.Ln 123.1	
	ARTICLE 11	HEALTH CARE SAVINGS PLAN........	Page.Ln 124.28	
	ARTICLE 12	WORK GROUPS........	Page.Ln 125.18	
	ARTICLE 13	SPECIAL LEGISLATION........	Page.Ln 135.15	
	ARTICLE 14	STATE BOARD OF INVESTMENT........	Page.Ln 138.12	
	ARTICLE 15	ADMINISTRATIVE, TECHNICAL, AND CONFORMING CHANGES RELATED TO VOLUNTEER AND PAID ON-CALL FIREFIGHTERS........	Page.Ln 143.1	
	ARTICLE 16	MISCELLANEOUS TECHNICAL CORRECTIONS........	Page.Ln 163.5	

APPENDIX 

Repealed Minnesota Statutes: H4074-2 

187.07 RESPONSIBILITIES OF COVERED EMPLOYERS.Subd. 3.Distribution of information. 
(a) Covered employers must provide information prepared by the board to all covered employees regarding the program. The information must be provided to each covered employee no later than 14 days after the covered employee's first day of employment. 

(b) Paragraph (a) does not apply to a covered employer until the covered employer's enrollment window has opened. No later than 14 days before the date of the first paycheck from which employee contributions could be deducted for transmittal to the program, the covered employer must provide the information prepared by the board regarding the program to all covered employees of the covered employer. 

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. 

424A.01 MEMBERSHIP IN A FIREFIGHTERS RELIEF ASSOCIATION.Subd. 6.Return to active firefighting after break in service. 
(a) This subdivision governs the service pension calculation requirements of a firefighter who returns to active service after a break in service and applies to all breaks in service, except that the resumption service requirements of this subdivision do not apply to leaves of absence made available by federal statute, such as the Family Medical Leave Act, United States Code, title 29, section 2691, and the Uniformed Services Employment and Reemployment Rights Act, United States Code, title 38, section 4301, and do not apply to leaves of absence made available by state statute, such as the Parental Leave Act, section 181.941; the Leave for Organ Donation Act, section 181.9456; the Leave for Civil Air Patrol Service Act, section 181.946; the Leave for Immediate Family Members of Military Personnel Injured or Killed in Active Service Act, section 181.947; or the Protection of Jurors' Employment Act, section 593.50. 

(b)(1) If a firefighter who has a break in service of any duration resumes performing active firefighting with the fire department associated with the relief association, and if the bylaws of the relief association so permit, the firefighter may again become an active member of the relief association, subject to the requirements of this paragraph and the service pension calculation requirements under this section. 

(2) A firefighter who has been paid a service pension or disability benefit must wait at least 60 days following receipt of the pension or benefit before resuming active firefighting with the fire department and active membership in the relief association. 

(3) A firefighter who has been granted an approved leave of absence not exceeding one year by the fire department or by the relief association is exempt from the minimum period of resumption service requirement of this section. 

(4) A person who has a break in service not exceeding one year but has not been granted an approved leave of absence may be made exempt from the minimum period of resumption service requirement of this section by the relief association bylaws. 

(5) If the bylaws so provide, a firefighter who returns to active relief association membership after a break in service of any duration may continue to collect a monthly service pension from the relief association, notwithstanding the requirement under section 424A.02, subdivision 1, that the firefighter has separated from active service. 

(c) If a former firefighter who has been paid a service pension or disability benefit returns to active relief association membership under paragraph (b), the firefighter may qualify for the receipt of a service pension from the relief association for the resumption service period if the firefighter meets the service requirements of section 424A.016, subdivision 3, or 424A.02, subdivision 2, as applicable, or meets the resumption minimum service requirements specified in the relief association's bylaws. No firefighter may be paid a service pension more than once for the same period of service. 

(d) If a former firefighter who has not been paid a service pension or disability benefit returns to active relief association membership under paragraph (b), the firefighter may qualify for the receipt of a service pension from the relief association for the original and resumption service periods if the firefighter meets the service requirements of section 424A.016, subdivision 3, or 424A.02, subdivision 2, based on the original and resumption years of service credit. 

(e) A firefighter who returns to active lump-sum relief association membership under paragraph (b) and who qualifies for a service pension under paragraph (c) must have, upon a subsequent cessation of duties, any service pension for the resumption service period calculated as a separate benefit. If a lump-sum service pension had been paid to the firefighter upon the firefighter's previous cessation of duties, a second lump-sum service pension for the resumption service period must be calculated by applying the service pension amount in effect on the date of the firefighter's termination of the resumption service for all years of the resumption service. 

(f) A firefighter who had not been paid a lump-sum service pension returns to active relief association membership under paragraph (b), who did not meet the minimum period of resumption service requirement specified in the relief association's bylaws, but who does meet the minimum service requirement of section 424A.02, subdivision 2, based on the firefighter's original and resumption years of active service, must have, upon a subsequent cessation of duties, a service pension for the original and resumption service periods calculated by applying the service pension amount in effect on the date of the firefighter's termination of the resumption service, or, if the bylaws so provide, based on the service pension amount in effect on the date of the firefighter's previous cessation of duties. The service pension for a firefighter who returns to active lump-sum relief association membership under this paragraph, but who had met the minimum period of resumption service requirement specified in the relief association's bylaws, must be calculated by applying the service pension amount in effect on the date of the firefighter's termination of the resumption service. 

(g) If a firefighter receiving a monthly benefit service pension returns to active monthly benefit relief association membership under paragraph (b), and if the relief association bylaws do not allow for the firefighter to continue collecting a monthly service pension, any monthly benefit service pension payable to the firefighter is suspended as of the first day of the month next following the date on which the firefighter returns to active membership. If the firefighter was receiving a monthly benefit service pension, and qualifies for a service pension under paragraph (c), the firefighter is entitled to an additional monthly benefit service pension upon a subsequent cessation of duties calculated based on the resumption service credit and the service pension accrual amount in effect on the date of the termination of the resumption service. A suspended initial service pension resumes as of the first of the month next following the termination of the resumption service. If the firefighter was not receiving a monthly benefit service pension and meets the minimum service requirement of section 424A.02, subdivision 2, a service pension must be calculated by applying the service pension amount in effect on the date of the firefighter's termination of the resumption service for all years of service credit. 

(h) A firefighter who was not receiving a monthly benefit service pension returns to active relief association membership under paragraph (b), who did not meet the minimum period of resumption service requirement specified in the relief association's bylaws, but who does meet the minimum service requirement of section 424A.02, subdivision 2, based on the firefighter's original and resumption years of active service, must have, upon a subsequent cessation of duties, a service pension for the original and resumption service periods calculated by applying the service pension amount in effect on the date of the firefighter's termination of the resumption service, or, if the bylaws so provide, based on the service pension amount in effect on the date of the firefighter's previous cessation of duties. The service pension for a firefighter who returns to active relief association membership under this paragraph, but who had met the minimum period of resumption service requirement specified in the relief association's bylaws, must be calculated by applying the service pension amount in effect on the date of the firefighter's termination of the resumption service. 

(i) For defined contribution plans, a firefighter who returns to active relief association membership under paragraph (b) and who qualifies for a service pension under paragraph (c) or (d) must have, upon a subsequent cessation of duties, any service pension for the resumption service period calculated as a separate benefit. If a service pension had been paid to the firefighter upon the firefighter's previous cessation of duties, and if the firefighter meets the minimum service requirement of section 424A.016, subdivision 3, or meets the resumption minimum service requirements specified in the relief association's bylaws, as applicable, based on the resumption years of service, a second service pension for the resumption service period must be calculated to include allocations credited to the firefighter's individual account during the resumption period of service and deductions for administrative expenses, if applicable. 

(j) For defined contribution plans, if a firefighter who had not been paid a service pension returns to active relief association membership under paragraph (b), and who meets the minimum service requirement of section 424A.016, subdivision 3, based on the firefighter's original and resumption years of service, must have, upon a subsequent cessation of duties, a service pension for the original and resumption service periods calculated to include allocations credited to the firefighter's individual account during the original and resumption periods of service and deductions for administrative expenses, if applicable, less any amounts previously forfeited under section 424A.016, subdivision 4.