HF 4074
3rd Engrossment - 94th Legislature (2025 - 2026)
Posted on 05/16/2026 12:15 p.m.
2.32 2.33
2.34 2.35 2.36 2.37 2.38 2.39 2.40 2.41
2.42 2.43 2.44 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13
3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21
3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32
4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15
4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 5.1 5.2
5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22
5.23 5.24 5.25 5.26
5.27 5.28 5.29 5.30 5.31 5.32 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8
6.9 6.10 6.11 6.12 6.13
6.14 6.15 6.16 6.17 6.18
6.19 6.20 6.21 6.22 6.23 6.24
6.25 6.26 6.27 6.28 6.29 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 8.1 8.2 8.3 8.4 8.5 8.6 8.7
8.8 8.9
8.10 8.11
8.12 8.13
8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 9.1 9.2 9.3 9.4
9.5
9.6 9.7 9.8
9.9
9.10 9.11 9.12
9.13
9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 10.1 10.2 10.3 10.4 10.5 10.6
10.7 10.8
10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15
11.16 11.17
11.18 11.19 11.20
11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29
11.30
12.1 12.2 12.3 12.4 12.5
12.6
12.7 12.8 12.9 12.10 12.11 12.12 12.13
12.14
12.15 12.16 12.17 12.18 12.19 12.20
12.21
12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 13.1 13.2
13.3
13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22
13.23
13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 14.1 14.2 14.3 14.4 14.5
14.6
14.7 14.8 14.9 14.10 14.11
14.12
14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26
14.27
14.28 14.29 14.30 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19
15.20
15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34
16.1
16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11
16.12
16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12
17.13
17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29
17.30
18.1 18.2 18.3
18.4
18.5 18.6 18.7
18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15
18.16
18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29
22.30
23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17
26.18
26.19 26.20 26.21 26.22 26.23 26.24 26.25
26.26
26.27 26.28 26.29 26.30 26.31 27.1 27.2 27.3 27.4
27.5
27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18
27.19 27.20 27.21
27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13
29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21
33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29
34.30 34.31 34.32 34.33 35.1 35.2 35.3 35.4 35.5 35.6 35.7
35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 36.1 36.2 36.3 36.4
36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19
36.20 36.21 36.22 36.23 36.24 36.25
36.26 36.27 36.28 36.29 36.30 36.31 36.32 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8
38.9 38.10 38.11 38.12 38.13
38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14
40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10
41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31
42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10
43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28
43.29 43.30 43.31 43.32 43.33 44.1 44.2 44.3 44.4 44.5 44.6 44.7
44.8 44.9 44.10 44.11 44.12 44.13
44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33
45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13
45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24
45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9
46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26
46.27 46.28 46.29 46.30 46.31 46.32 46.33 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15
47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28
48.29 48.30 48.31 49.1 49.2 49.3 49.4 49.5
49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16
49.17 49.18 49.19 49.20
49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28
49.29 49.30 49.31 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9
51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28
51.29 51.30 52.1 52.2 52.3
52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21
52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22
53.23 53.24 53.25 53.26
53.27 53.28 53.29
54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22
55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14
56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 58.1 58.2 58.3 58.4 58.5 58.6 58.7
58.8 58.9 58.10 58.11 58.13 58.12 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 58.34 58.35 58.36 58.37 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11
59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 60.1 60.2 60.3 60.4
60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25
60.26 60.27 60.28 60.29 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19
61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28
62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19
62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16
63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23
64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11
65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 66.1 66.2
66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23
66.24 66.25 66.26 66.27 66.28 66.29 66.30 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23
67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11
68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13
69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 70.1 70.2
70.3
70.4 70.5 70.6
70.7 70.8 70.9 70.10
70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23
70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 71.1
71.2 71.3
71.4 71.5
71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17
71.18
71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27
73.28
73.29 73.30 73.31 73.32 73.33
74.1
74.2 74.3 74.4 74.5 74.6
74.7
74.8 74.9 74.10 74.11 74.12 74.13 74.14
74.15
74.16 74.17 74.18 74.19 74.20
74.21
74.22 74.23 74.24 74.25 74.26 74.27 74.28 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23
77.24
77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31
78.32 78.33 78.34 79.1 79.2 79.3 79.4
79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18
80.19
80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26
81.27
81.28 81.29 81.30 81.31 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33
83.1
83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28
83.29
84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 85.1 85.2 85.3
85.4
85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 85.33
86.1
86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16
87.17
87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14
88.15
88.16 88.17 88.18 88.19 88.20 88.21
88.22
88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 89.1 89.2
89.3
89.4 89.5
89.6
89.7 89.8
89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28
89.29 89.30
90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8
90.9 90.10
90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9
91.10
91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30 91.31 91.32 91.33 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17
92.18 92.19
92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32
93.1 93.2
93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13
96.14 96.15 96.16
96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 97.1 97.2
97.3
97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21
97.22
97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 98.1 98.2 98.3
98.4
98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 99.1 99.2 99.3 99.4 99.5 99.6
99.7
99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9
100.10 100.11
100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20
100.21 100.22
100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 102.1 102.2
102.3 102.4
102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 103.1 103.2 103.3 103.4 103.5 103.6
103.7
103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19
103.20
103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24
105.25
105.26 105.27 105.28 105.29 105.30 105.31 105.32 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 106.34 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22
107.23
107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16
108.17
108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 109.1 109.2 109.3
109.4
109.5 109.6
109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18
109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9
110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22
110.23 110.24 110.25 110.26
110.27 110.28 110.29 110.30 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8
111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 112.1 112.2
112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12
112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22
112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 113.1 113.2
113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10
113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8
114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19
114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9
115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21
115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 116.1 116.2 116.3 116.4 116.5
116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13
116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 118.1 118.2 118.3 118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 118.34 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10
119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32
120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 121.1 121.2
121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 122.1 122.2 122.3 122.4 122.5 122.6
122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22
122.23 122.24
122.25 122.26
123.1 123.2
123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26
124.27
124.28 124.29
124.30 124.31 124.32 124.33 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16
125.17
125.18 125.19
125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32 128.1 128.2 128.3 128.4
128.5
128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 129.32 129.33 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 133.32 133.33 133.34 134.1 134.2 134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30
134.31
135.1 135.2 135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13
135.14
135.15 135.16
135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28 135.29 135.30 136.1 136.2 136.3 136.4 136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12
136.13
136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28 136.29 137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17 137.18 137.19 137.20 137.21 137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30 137.31 137.32 138.1 138.2 138.3 138.4 138.5 138.6 138.7 138.8 138.9
138.10 138.11
138.12 138.13
138.14 138.15 138.16 138.17 138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24 139.25 139.26 139.27 139.28 139.29 139.30 139.31 139.32 139.33 140.1 140.2 140.3 140.4
140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18 140.19 140.20 140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 141.1 141.2 141.3 141.4 141.5 141.6 141.7
141.8 141.9 141.10 141.11 141.12 141.13 141.14 141.15 141.16 141.17 141.18 141.19 141.20 141.21 141.22 141.23 141.24 141.25 141.26 141.27 141.28 141.29 141.30 141.31 141.32 141.33 142.1 142.2 142.3 142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11 142.12 142.13 142.14 142.15 142.16 142.17 142.18 142.19 142.20 142.21 142.22 142.23 142.24 142.25
142.26 142.28 142.27
143.1 143.2 143.3
143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13 143.14 143.15 143.16 143.17 143.18 143.19
143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30 143.31
144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9 144.10 144.11 144.12 144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31 144.32 144.33
145.1 145.2 145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14 145.15 145.16 145.17 145.18 145.19 145.20 145.21 145.22 145.23 145.24 145.25 145.26
145.27 145.28 145.29 145.30 146.1 146.2 146.3 146.4 146.5 146.6 146.7 146.8 146.9 146.10 146.11 146.12 146.13 146.14 146.15 146.16 146.17 146.18 146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26 146.27 146.28 146.29 146.30 146.31 146.32
146.33 146.34 146.35 147.1 147.2 147.3 147.4 147.5 147.6 147.7 147.8 147.9 147.10
147.11 147.12 147.13 147.14 147.15 147.16 147.17 147.18 147.19 147.20 147.21 147.22 147.23 147.24 147.25 147.26 147.27 147.28 147.29 147.30 147.31 147.32 148.1 148.2
148.3 148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13
148.14 148.15 148.16 148.17 148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25 148.26 148.27 148.28 148.29 148.30 148.31 149.1 149.2 149.3 149.4 149.5 149.6 149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20 149.21 149.22 149.23 149.24
149.25 149.26 149.27 149.28 149.29 149.30 149.31 149.32 149.33 150.1 150.2 150.3 150.4 150.5
150.6 150.7 150.8 150.9 150.10 150.11 150.12 150.13
150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24 150.25 150.26 150.27 150.28 150.29 150.30 151.1 151.2 151.3 151.4 151.5 151.6 151.7 151.8 151.9 151.10 151.11 151.12 151.13 151.14 151.15 151.16 151.17 151.18 151.19
151.20 151.21 151.22 151.23 151.25 151.24 151.26 151.27 151.28 151.29 151.30 151.31 151.32 151.33 151.34 152.1 152.2 152.3 152.4 152.5 152.6 152.7 152.8 152.9 152.10 152.11 152.12 152.13 152.14 152.15 152.16 152.17 152.18 152.19 152.20 152.21 152.22 152.23 152.24
152.25 152.26 152.27 152.28 152.29 152.30 152.31 152.32 152.33 152.34 153.1 153.2 153.3 153.4 153.5 153.6 153.7 153.8 153.9 153.10 153.11 153.12 153.13 153.14 153.15 153.16 153.17
153.18 153.19 153.20 153.21 153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31 154.1 154.2 154.3 154.4 154.5 154.6 154.7 154.8 154.9 154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27 154.28
155.1 155.2 155.3 155.4 155.5 155.6 155.7 155.8 155.9 155.10 155.11 155.12 155.13 155.14 155.15 155.16 155.17 155.18 155.19 155.20 155.21 155.22 155.23 155.24 155.25
155.26 155.27 155.28 156.1 156.2 156.3 156.4 156.5 156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27
157.1 157.2 157.3 157.4 157.5 157.6 157.7 157.8 157.9 157.10 157.11 157.12 157.13 157.14 157.15 157.16 157.17 157.18 157.19 157.20 157.21 157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 157.32 158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8 158.9 158.10 158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21
158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29 158.30 158.31 158.32 158.33 159.1 159.2 159.3 159.4 159.5 159.6 159.7
159.8 159.9 159.10 159.11 159.12 159.13 159.14 159.15 159.16 159.17 159.18 159.19
159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 159.31 160.1 160.2 160.3 160.4 160.5 160.6 160.7 160.8 160.9 160.10 160.11 160.12 160.13 160.14 160.15 160.16 160.17 160.18 160.19 160.20 160.21 160.22 160.23 160.24 160.25 160.26 160.27 160.28
160.29 160.30 160.31 160.32 160.33 160.34 161.1 161.2 161.3 161.4 161.5 161.6 161.7 161.8 161.9 161.10 161.11 161.12 161.13
161.14 161.15 161.16 161.17
161.18 161.19 161.20 161.21 161.22 161.23 161.24 161.25 161.26 161.27 161.28 161.29 161.30 161.31 161.32 162.1 162.2 162.3 162.4 162.5 162.6 162.7
162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23 162.24
162.25 162.26 162.27 162.28 162.29 162.30 162.31 162.32 163.1 163.2
163.3 163.4
163.5 163.6
163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19 163.20 163.21 163.22 163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 164.1 164.2 164.3 164.4 164.5 164.6 164.7 164.8 164.9 164.10 164.11 164.12 164.13 164.14 164.15 164.16 164.17 164.18 164.19 164.20 164.21 164.22 164.23 164.24 164.25 164.26 164.27 164.28 164.29 164.30 164.31 164.32 164.33 165.1 165.2 165.3 165.4 165.5 165.6 165.7 165.8 165.9 165.10 165.11 165.12 165.13 165.14 165.15 165.16 165.17 165.18 165.19 165.20 165.21 165.22
165.23
165.24 165.25 165.26 165.27 165.28 165.29 165.30 165.31 166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12
166.13
166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30 166.31 166.32 167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18 167.19 167.20 167.21 167.22 167.23 167.24 167.25 167.26 167.27 167.28 167.29 167.30 167.31 167.32 168.1 168.2 168.3 168.4 168.5
168.6
168.7 168.8 168.9 168.10 168.11 168.12 168.13 168.14 168.15 168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29 168.30 168.31 169.1 169.2 169.3 169.4 169.5 169.6 169.7 169.8
169.9
A bill for an act
relating to retirement; Minnesota State Retirement System; making administrative
and technical changes; Public Employees Retirement Association local government
correctional service retirement plan; reducing the employee and employer
contribution rates and increasing postretirement adjustments; public employees
police and fire retirement plan; reducing the waiting period for post-retirement
adjustments; providing direct state aid; Teachers Retirement Association; making
administrative changes; St. Paul Teachers Retirement Fund Association; decreasing
employee contributions; providing direct state aid; modifying the termination
process for firefighter relief associations; implementing recommendations of the
state auditor's fire relief association working group; special legislation for the
Maple Plain fire department termination of participation in the statewide volunteer
firefighter plan; modifying the definition of salary to exclude pay for Minnesota
paid leave; requiring the employer of a reemployed annuitant to make employer
contributions to the pension plan that covers the annuitant; authorizing elected
officials to participate in the health care savings plan; Minnesota Secure Choice
Retirement Program; making administrative changes; revising enrollment, notice,
annual reporting, and board of director requirements; State Board of Investment;
modifying expense apportionment among funds managed by the State Board of
Investment; establishing work groups on relief associations and duty disability;
establishing the Probation and Telecommunicator Retirement subplan administered
by the Minnesota State Retirement System; establishing the Local Government
Probation and Telecommunicator Retirement Plan administered by the Public
Employees Retirement Association; transfers from the general fund to the new
probation and telecommunicator to fund a temporary reduction in employee
contribution rates; special legislation for an individual's periods of omitted service;
special legislation for an individual with a missing higher education individual
retirement account; making technical changes; appropriating and transferring
money; amending Minnesota Statutes 2024, sections 6.496; 11A.07, subdivision
5; 11A.17, subdivision 1; 43A.346, subdivisions 8, 10; 144F.01, subdivision 2;
187.03, by adding subdivisions; 187.05, subdivisions 1, 7, by adding a subdivision;
187.06, subdivision 3; 187.07, by adding a subdivision; 187.08, subdivisions 1, 2,
6, 8; 299K.03, subdivision 3; 299N.02, subdivision 1; 352.01, subdivision 13;
352.021, subdivision 2; 352.029, subdivisions 1, 2, 2a; 352.115, subdivisions 7a,
8, 9, 10; 352.1155, subdivision 3; 352.75, subdivision 2; 352.87, subdivisions 1,
2; 352.951; 352.98, subdivisions 1, 3; 353.01, subdivisions 10, 16, 37; 353.0141,
subdivision 1; 353.031, subdivisions 1, 2, 3; 353.15, subdivision 1; 353.27,
subdivisions 4, 7b, 11, 12, 12a, 12b, 13, 14; 353.30, subdivision 3; 353.33,
subdivisions 3, 7a, 11; 353.34, subdivisions 1, 3; 353.37, subdivision 5; 353.371,
subdivisions 6, 7; 353.46, subdivision 2; 353D.03, subdivision 6; 353E.03,
subdivisions 1, 2; 353G.02, subdivision 4; 353G.08, subdivision 1; 353G.18,
subdivision 4; 354.05, subdivisions 35, 37, by adding a subdivision; 354.07,
subdivision 2; 354.44, subdivision 5; 354.444, subdivisions 2, 3, 5; 354.445;
354.48, subdivisions 4, 6; 354A.011, subdivisions 14b, 24; 354A.021, subdivision
8; 354A.095; 354A.12, subdivisions 1, 3a, 3c; 354A.29, subdivision 7; 356.20,
subdivision 2; 356.214, subdivision 1; 356.216; 356.219, subdivision 1; 356.24,
subdivision 3; 356.30, subdivisions 1, 3, by adding a subdivision; 356.302,
subdivisions 1, 7; 356.303, subdivision 4; 356.315, subdivision 9; 356.32,
subdivision 2; 356.401, subdivision 3; 356.415, subdivisions 1g, 2, by adding a
subdivision; 356.461, subdivisions 1, 2; 356.465, subdivision 3; 356.47, subdivision
3; 356.48, subdivision 1; 356.611, subdivision 6; 356.635, subdivision 2a; 356.65,
subdivision 1; 356B.02; 423A.02, subdivisions 1b, 3; 424A.001, subdivisions 8,
9, 9a, 9b; 424A.01, subdivision 3; 424A.014, subdivision 1; 424A.016, subdivision
4; 424B.10, subdivision 1b; 424B.22, subdivisions 5, 7, 8, 9, as amended; 465.90;
Minnesota Statutes 2025 Supplement, sections 11A.04; 11A.07, subdivision 4;
151.37, subdivision 12; 181.101; 187.03, subdivisions 5, 6a; 187.05, subdivisions
1a, 4; 187.07, subdivision 1; 187.08, subdivision 3; 187.11; 187.12, subdivision
1; 299A.465, subdivision 1; 352.029, subdivision 3; 352.905, by adding a
subdivision; 352.907, by adding a subdivision; 353.01, subdivisions 2a, 2b; 353.65,
subdivision 3b; 353D.01, subdivision 2; 353D.02, subdivision 7; 356.215,
subdivisions 8, 11; 356.24, subdivision 1; 356.415, subdivision 1c; 423A.022,
subdivision 2; 424A.016, subdivision 6; 424A.05, subdivision 3; Laws 2022,
chapter 65, article 3, section 1, subdivisions 2, as amended, 3, as amended; Laws
2025, chapter 39, article 1, section 8; proposing coding for new law in Minnesota
Statutes, chapters 187; 352; 424A; proposing coding for new law as Minnesota
Statutes, chapter 353H; repealing Minnesota Statutes 2024, sections 352.87,
subdivision 8; 424A.01, subdivision 6; Minnesota Statutes 2025 Supplement,
section 187.07, subdivision 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
MINNESOTA STATE RETIREMENT SYSTEM
Section 1.
Minnesota Statutes 2024, section 352.021, subdivision 2, is amended to read:
Subd. 2.
State employees covered.
Every person who becomes a state employee as
defined in section 352.01 is covered by the general state employees retirement plannew text begin , unless
the state employee is covered by the correctional employees retirement plan under section
352.905new text end . Acceptance of state employment or continuance in state service is deemed to be
consent new text begin by the state employee new text end to have deductions made from salary for deposit to the credit
of the account of the state employee in the retirement fundnew text begin of the plan that provides retirement
coverage for the state employeenew text end .
Sec. 2.
Minnesota Statutes 2024, section 352.029, subdivision 1, is amended to read:
Subdivision 1.
Qualifications.
new text begin (a) new text end Unless deleted text begin alreadydeleted text end specifically included under section
352.01, subdivision 2a, or unless specifically excluded under section 352.01, subdivision
2b, a state employee new text begin covered by the general state employees retirement plan who is new text end on leave
of absence without pay to provide service as an employee or officer of a labor organization
that is an exclusive bargaining agent representing state employees may elect under
subdivision 2 to be covered by the general state employees retirement plan deleted text begin of the Minnesota
State Retirement Systemdeleted text end for service with the labor organization, subject to the limitations
set forth in subdivisions 2a and 2b.
new text begin
(b) Unless specifically included under section 352.01, subdivision 2a, or unless
specifically excluded under section 352.01, subdivision 2b, a state employee covered by
the correctional employees retirement plan who is on leave of absence without pay to provide
service as an employee or officer of a labor organization that is an exclusive bargaining
agent representing state employees may elect under subdivision 2 to be covered by the
correctional employees retirement plan for service with the labor organization, subject to
the limitations set forth in subdivisions 2a and 2b.
new text end
Sec. 3.
Minnesota Statutes 2024, section 352.029, subdivision 2, is amended to read:
Subd. 2.
Election.
A person described in subdivision 1 is covered by the deleted text begin systemdeleted text end new text begin general
employees retirement plan under subdivision 1, paragraph (a), or the correctional employees
retirement plan under subdivision 1, paragraph (b),new text end if new text begin the person delivers a new text end written election
to be covered deleted text begin is delivereddeleted text end to the executive director within 90 days of being employed by
the labor organizationdeleted text begin ,deleted text end or within 90 days of starting the first leave of absence deleted text begin with an
exclusive bargaining agentdeleted text end new text begin to provide service as an employee or officer of a labor
organizationnew text end , whichever is later.
Sec. 4.
Minnesota Statutes 2024, section 352.029, subdivision 2a, is amended to read:
Subd. 2a.
Limitations on salary for benefits and contributions.
(a) The covered salary
for a labor organization employee who is a member under section 352.01, subdivision 2a,
paragraph (a), or who qualifies for membership under this section deleted text begin or section 352.75deleted text end is limited
to the lesser of:
(1) the employee's deleted text begin actualdeleted text end salary as defined under section 352.01, subdivision 13; or
(2) 75 percent of the salary of the governor as set under section 15A.082.
(b) The limited covered salary determined under this subdivision must be used in
determining employee, employer, and new text begin supplemental new text end employer deleted text begin additionaldeleted text end contributions under
deleted text begin sectiondeleted text end new text begin sectionsnew text end 352.04, subdivisions 2 and 3, new text begin and 352.92 new text end and in determining retirement
annuities and other benefits under this chapter and chapter 356.
Sec. 5.
Minnesota Statutes 2025 Supplement, section 352.029, subdivision 3, is amended
to read:
Subd. 3.
Contributions.
new text begin (a) new text end The employee and employer contributions required by
section 352.04deleted text begin ,deleted text end new text begin for employees covered by the general state employees retirement plannew text end or
by section 352.92 for employees covered by deleted text begin section 352.905,deleted text end new text begin the correctional employees
retirement plan new text end are the obligation of the employee deleted text begin who is a member under section 352.01,
subdivision 2a, paragraph (a), ordeleted text end who chooses coverage under this section. However, the
employing labor organization may pay the employer contributionsnew text begin to the general state
employees retirement fund as required by section 352.04 for employees covered by the
general state employees retirement plan or to the correctional employees retirement fund
as required by section 352.92 for employees covered by the correctional employees retirement
plannew text end .
new text begin (b) new text end Contributions made by the employee must be made by salary deduction. deleted text begin The
employing labor organization shall pay all contributions to the system as required by section
352.04, or by section 352.92 for employees covered by section 352.905.
deleted text end
Sec. 6.
Minnesota Statutes 2024, section 352.115, subdivision 7a, is amended to read:
Subd. 7a.
Application procedure.
(a) The deleted text begin filing of andeleted text end application for an annuity, refund,
disability benefit, survivor benefit, death benefit, or other deleted text begin monthlydeleted text end benefit authorized by
this chapter or chapter 3A, 352B, 352D, or 490 must comply with this subdivision.
(b) Filing of an application deleted text begin under paragraph (a) is not complete untildeleted text end new text begin is effective on the
datenew text end an original application deleted text begin and supporting documents aredeleted text end new text begin isnew text end received in an office of the
system or received by a person authorized by the director. An original application may not
be an electronic copy or facsimile copy and if received in an office of the system, must be
delivered by personal service or mail.
(c) deleted text begin In this subdivision,deleted text end new text begin To complete the application, supporting documents must be
received in an office of the system or received by a person authorized by the director no
later than 60 days after filing the application. Supporting documents are not required to be
original documents except as determined by the director.new text end deleted text begin "deleted text end Supporting documentsdeleted text begin "deleted text end are:
(1) documents sufficient to verify birthnew text begin datenew text end ;
(2) documents sufficient to verify marital status or establish the terms of a divorce, if
applicable; and
(3) the new text begin spousal new text end acknowledgment required by section 356.46, subdivision 3, paragraph
(b).
deleted text begin
Supporting documents are not required to be original documents except as determined by
the director.
deleted text end
Sec. 7.
Minnesota Statutes 2024, section 352.115, subdivision 8, is amended to read:
Subd. 8.
Accrual of annuity.
new text begin (a)new text end The application for an annuity must not be deleted text begin madedeleted text end new text begin filednew text end
more than 60 days before the deleted text begin timedeleted text end new text begin datenew text end the state employee or former state employee elects
to begin collecting a retirement annuity.
new text begin (b)new text end If the director determines an applicant for annuity has fulfilled the legal requirements
for an annuity, the director shall authorize the annuity payment in accordance with this
chapter and payment must be made as authorized.
new text begin (c)new text end An annuity shall begin to accrue no earlier than 180 days before the date the
application is filed with the director, but not before the day following the termination of
state service or before the day the employee is eligible to retire by reason of both age and
service requirements.
new text begin (d)new text end The retirement annuity shall cease with the last payment which had accrued during
the lifetime of the retired employee unless an optional annuity provided in section 352.116,
subdivision 3, had been selected and had become payable. The joint and last survivor annuity
shall cease with the last payment received by the survivor during the lifetime of the survivor.
If a retired employee had not selected an optional annuity, or a survivor annuity is not
payable under the option, and a spouse survives, the spouse is entitled only to the annuity
for the calendar month in which the retired employee died. If an optional annuity is payable
after the death of the retired employee, the survivor is entitled to the annuity for the calendar
month in which the retired employee died.
Sec. 8.
Minnesota Statutes 2024, section 352.115, subdivision 9, is amended to read:
Subd. 9.
Annuities payable monthly.
All annuities, and disability benefits authorized
by this chapter, must be paid in equal monthly installments and must not be increased,
decreased, or revoked except as provided in this chapternew text begin or chapter 356new text end .
Sec. 9.
Minnesota Statutes 2024, section 352.87, subdivision 1, is amended to read:
Subdivision 1.
Eligibility.
new text begin (a) new text end A member of the general new text begin state employees retirement new text end plan
who is employed by the Department of Public Safety, State Fire Marshal Division, as a
deputy state fire marshal, fire/arson investigator, deleted text begin who elects special benefit coverage under
subdivision 8,deleted text end is entitled to retirement deleted text begin benefitsdeleted text end or disability benefits, as applicable, as stated
in this section for eligible service under this section rendered after July 1, 1999, for which
allowable service credit is receiveddeleted text begin .deleted text end new text begin if the member is first employed as a deputy state fire
marshal, fire/arson investigator:
new text end
new text begin
(1) before July 1, 2026, and the member elected special benefit coverage under the laws
in effect on the day the member was first employed as a deputy state fire marshal, fire/arson
investigator; or
new text end
new text begin
(2) after June 30, 2026.
new text end
new text begin (b)new text end The covered member must be at least age 55 to qualify for the retirement annuity
specified in subdivision 3.
Sec. 10.
Minnesota Statutes 2024, section 352.87, subdivision 2, is amended to read:
Subd. 2.
Retirement annuity eligibility.
A person specified in subdivision 1 who meets
all eligibility requirements specified in this chapter applicable to deleted text begin general plandeleted text end members new text begin of
the general state employees retirement plan new text end is eligible for retirement benefits as specified
in subdivision 3.
Sec. 11.
Minnesota Statutes 2025 Supplement, section 352.905, is amended by adding a
subdivision to read:
new text begin Subd. 8. new text end
new text begin Employees of labor organization. new text end
new text begin
Employees who meet the coverage and
election requirements of section 352.029 will continue to be covered by the correctional
employees retirement plan.
new text end
Sec. 12.
Minnesota Statutes 2025 Supplement, section 352.907, is amended by adding a
subdivision to read:
new text begin Subd. 7. new text end
new text begin Certain laws not applicable to the membership committee. new text end
new text begin
(a) Meetings of
the correctional plan membership committee are not subject to chapter 13D.
new text end
new text begin
(b) The correctional plan membership committee is not an agency for the purposes of
sections 15.0597 and 15.0599.
new text end
Sec. 13. new text begin ELECTION OF COVERAGE FOR CURRENT DEPUTY STATE FIRE
MARSHALS.
new text end
new text begin Subdivision 1. new text end
new text begin Definition. new text end
new text begin
For purposes of this section, "eligible employee" means a
member of the general state employees retirement plan of the Minnesota State Retirement
System who began employment with the Department of Public Safety, State Fire Marshal
Division, as a deputy state fire marshal, fire/arson investigator, after July 31, 2021, and
before October 5, 2022.
new text end
new text begin Subd. 2. new text end
new text begin Election of coverage. new text end
new text begin
(a) An eligible employee may file a notice with the
executive director of the Minnesota State Retirement System on a form prescribed by the
executive director stating that the employee elects to be covered by section 352.87. Notice
must be filed no later than 60 days after enactment of this section.
new text end
new text begin
(b) Elections under this subdivision are irrevocable during any period of covered
employment.
new text end
new text begin
(c) An eligible employee who makes an election under this subdivision is entitled to
retirement or disability benefits, as applicable, as stated in section 352.87. Elected coverage
is effective retroactively from the first day of employment.
new text end
new text begin
(d) A failure to file a timely notice is deemed a waiver of coverage by section 352.87.
new text end
new text begin Subd. 3. new text end
new text begin Calculation of additional contributions due. new text end
new text begin
(a) Upon the request of an
eligible employee before the eligible employee files the notice electing coverage under
subdivision 2 or if an eligible employee files the notice electing coverage under subdivision
2, the executive director of the Minnesota State Retirement System must calculate:
new text end
new text begin
(1) the employee contributions that would have been deducted from the eligible
employee's salary starting with the first day of covered employment but were not deducted
because the eligible employee had not yet filed the notice electing coverage, plus interest
at the applicable rate or rates specified in section 356.59, subdivision 2; and
new text end
new text begin
(2) the employer contributions that would have been paid by the employer starting with
the eligible employee's first day of covered employment but were not deducted because the
eligible employee had not yet filed the notice electing coverage, plus interest at the applicable
rate or rates specified in section 356.59, subdivision 2.
new text end
new text begin
(b) The executive director must inform the eligible employee and the Department of
Public Safety of the amounts calculated under paragraph (a) no later than 30 days after
receiving the request or the notice electing coverage from the eligible employee.
new text end
new text begin Subd. 4. new text end
new text begin Payment of additional contributions. new text end
new text begin
(a) If an eligible employee files a notice
electing coverage under subdivision 2, the eligible employee must pay the employee
contributions and interest computed under subdivision 3, paragraph (a), to the general
employees retirement fund of the Minnesota State Retirement System in a lump sum.
Payment must be made within six months of filing the notice electing coverage under
subdivision 2 or on the date the eligible employee terminates employment as a deputy state
fire marshal, fire/arson investigator, whichever is earlier.
new text end
new text begin
(b) The Department of Public Safety must pay the employer contributions and interest
computed under subdivision 3, paragraph (a), to the general employees retirement fund of
the Minnesota State Retirement System within 30 days of the date on which the executive
director of the Minnesota State Retirement System certifies to the Department of Public
Safety that the eligible employee made the payment required under paragraph (a).
new text end
Sec. 14. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2024, section 352.87, subdivision 8,
new text end
new text begin
is repealed.
new text end
Sec. 15. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 14 are effective July 1, 2026.
new text end
ARTICLE 2
PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
Section 1.
Minnesota Statutes 2025 Supplement, section 353.65, subdivision 3b, is amended
to read:
Subd. 3b.
Direct state aid.
(a) The state must pay $4,500,000 on October 1, 2018, and
October 1, 2019, to the public employees police and fire retirement plan. By October 1 of
each year after 2019, the state must pay $9,000,000 to the public employees police and fire
retirement plan.
(b) By October 1 of each year after 2024, the state must pay $17,700,000 to the public
employees police and fire retirement plan.
new text begin
(c) By October 1 of each year after 2025, the state must pay $8,000,000 to the public
employees police and fire retirement plan.
new text end
deleted text begin (c)deleted text end new text begin (d)new text end The commissioner of management and budget must pay the aid specified in this
subdivision. The amount required is annually appropriated from the general fund to the
commissioner of management and budget.
deleted text begin (d)deleted text end new text begin (e)new text end The aid under paragraph (a) continues until the first day of the fiscal year following
three consecutive fiscal years in which, for each fiscal year, the actuarial value of assets of
the fund equals or exceeds 110 percent of the actuarial accrued liabilities as reported by the
actuary retained under section 356.214 in the annual actuarial valuation prepared under
section 356.215.
deleted text begin (e)deleted text end new text begin (f)new text end The aid under paragraph (b) expires July 1, 2048.
new text begin
(g) The aid under paragraph (c) expires July 1, 2042.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2024, section 353E.03, subdivision 1, is amended to read:
Subdivision 1.
Member contributions.
A member of the plan shall make an employee
contribution in an amount equal to deleted text begin 6.83deleted text end new text begin six new text end percent of salary.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 3.
Minnesota Statutes 2024, section 353E.03, subdivision 2, is amended to read:
Subd. 2.
Employer contributions.
The employer shall contribute for a member of the
plan an amount equal to deleted text begin 10.25deleted text end new text begin nine new text end percent of salary.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 4.
Minnesota Statutes 2025 Supplement, section 356.415, subdivision 1c, is amended
to read:
Subd. 1c.
Public employees police and fire retirement plan.
(a) Retirement annuity,
disability benefit, or survivor benefit recipients of the public employees police and fire
retirement plan are entitled to an annual postretirement adjustment, effective as of each
January 1, as follows:
(1) for each annuitant or benefit recipient who deleted text begin will havedeleted text end new text begin hasnew text end been receiving deleted text begin andeleted text end new text begin thenew text end annuity
or benefit for at least deleted text begin 24deleted text end new text begin 12new text end full months as of the deleted text begin immediate precedingdeleted text end June 30new text begin of the calendar
year immediately before the effective date of the increasenew text end , a postretirement increase of one
percent must be applied each year to the amount of the monthly annuity or benefit of the
annuitant or benefit recipient; or
(2) for each annuitant or benefit recipient who has been receiving the annuity or benefit
for at least deleted text begin 13deleted text end new text begin onenew text end full deleted text begin monthsdeleted text end new text begin monthnew text end , but less than deleted text begin 24deleted text end new text begin 12new text end months as of the deleted text begin immediate
precedingdeleted text end June 30new text begin of the calendar year immediately before the effective date of the increasenew text end ,
a postretirement increase of 1/12 of one percent for each full month that the person has been
receiving an annuity or benefit during the fiscal year in which the annuity or benefit was
effective must be applied each year to the amount of the monthly annuity or benefit of the
annuitant or benefit recipient.
(b) An increase in annuity or benefit payments under this deleted text begin sectiondeleted text end new text begin subdivisionnew text end must be
made automatically unless written notice is filed by the annuitant or benefit recipient with
the executive director of the Public Employees Retirement Association requesting that the
increase not be made.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for postretirement adjustments beginning
on or after January 1, 2027.
new text end
Sec. 5.
Minnesota Statutes 2024, section 356.415, subdivision 1g, is amended to read:
Subd. 1g.
Annual postretirement adjustments; deleted text begin PERAdeleted text end new text begin Public Employees Retirement
Association;new text end local government correctional retirement plan.
(a) Annuities, disability
benefits, and survivor benefits being paid from the local government correctional retirement
plan of the Public Employees Retirement Association shall be increased effective each
January 1 by the percentage of increase determined under this subdivision. The increase to
the annuity or benefit shall be determined by multiplying the monthly amount of the annuity
or benefit by the percentage of increase specified in paragraph (b), after taking into account
any reduction to the percentage of increase required under paragraph (d).
(b) As of each January 1, The percentage of increase must be one percent unless the
federal Social Security Administration has announced a cost-of-living adjustment pursuant
to United States Code, title 42, section 415(i), in the last quarter of the preceding calendar
year that is greater than one percent. If the cost-of-living adjustment announced by the
federal Social Security Administration is greater than one percent, the percentage of increase
must be the same as the cost-of-living adjustment announced by the federal Social Security
Administration, but in no event may the percentage of increase exceed the applicable
maximum percentage in effect on January 1 under paragraph (c).
(c) The applicable maximum percentage in effect on January 1 is deleted text begin 2.5deleted text end new text begin threenew text end percent,
unless either of the following is true, in which case the applicable maximum percentage is
1.5 percent:
(1) the market value of assets equals or is less than 85 percent of the actuarial accrued
liabilities as reported by the plan's actuary in the most recent two consecutive annual actuarial
valuations; or
(2) the market value of assets equals or is less than 80 percent of the actuarial accrued
liabilities as reported by the plan's actuary in the most recent annual actuarial valuation. deleted text begin If,
on January 1 after a year during which the applicable maximum percentage was 1.5 percent,
neither clause (1) or (2) is true, then the applicable maximum percentage is 2.5 percent.
deleted text end
(d)(1) If the recipient of an annuity, disability benefit, or survivor's benefit has been
receiving the annuity or benefit for at least 12 full months as of the June 30 of the calendar
year immediately before the effective date of the increase, there is no reduction in the
percentage of increase.
(2) If the recipient of an annuity, disability benefit, or survivor's benefit has been receiving
the annuity or benefit for at least one month, but less than 12 full months, as of the June 30
of the calendar year immediately preceding the effective date of the increase, the percentage
of increase is multiplied by a fraction, the numerator of which is the number of months the
annuity or benefit was received as of June 30 of the preceding calendar year and the
denominator of which is 12.
(e) An increase in annuity or benefit payments under this deleted text begin sectiondeleted text end new text begin subdivisionnew text end must be
made automatically unless written notice is filed by the recipient with the executive director
of the Public Employees Retirement Association requesting that the increase not be made.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for postretirement adjustments beginning
on or after January 1, 2027.
new text end
ARTICLE 3
TEACHERS RETIREMENT ASSOCIATION; ST. PAUL TEACHERS RETIREMENT
FUND ASSOCIATION
Section 1.
Minnesota Statutes 2024, section 354.05, subdivision 37, is amended to read:
Subd. 37.
Termination of teaching service.
"Termination of teaching service" means
the withdrawal of a member from active teaching service by resignation or the termination
of the member's teaching contract by the employer. A member is not considered to have
terminated teaching service, if before the age of deleted text begin 62deleted text end new text begin 59-1/2new text end , and before the effective date of
the termination or retirement, the member has entered into a contract to resume teaching
service with an employing unit covered by the provisions of this chapter. A contract to
return to work after retirement for an active member who has attained age deleted text begin 62deleted text end new text begin 59-1/2new text end must
comply with the provisions of section 354.444.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2024, section 354.05, is amended by adding a subdivision to
read:
new text begin Subd. 44. new text end
new text begin Medical provider. new text end
new text begin
"Medical provider" means an individual licensed as a
physician, chiropractor, physician assistant, APRN, or, with respect to a mental impairment,
a psychologist.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2024, section 354.07, subdivision 2, is amended to read:
Subd. 2.
Investigatory powers.
In passing upon all applications and claims, the board
may summon, swear, hear, and examine witnesses and, in the case of claims for disability
benefits, may require the claimant to submit to a medical examination by a deleted text begin physiciandeleted text end new text begin medical
providernew text end of the board's choice, at the expense of the claimant, as a condition precedent to
the passing on the claim, and, in the case of all applications and claims, may conduct
investigations necessary to determine the validity and merit of the same.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2024, section 354.444, subdivision 2, is amended to read:
Subd. 2.
Eligibility.
An eligible person is a person who:
(1) is a teacher as defined by section 354.05, subdivision 2, who is at least age deleted text begin 62deleted text end new text begin 59-1/2new text end ;
(2) enters into a written agreement with the employing unit to return to work; and
(3) retires under the provisions of section 354.44 and begins to draw an annuity from
the Teachers Retirement Association.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2024, section 354.444, subdivision 3, is amended to read:
Subd. 3.
Work agreement.
new text begin
(a) A member who is at least age 59-1/2 may, before the
effective date of retirement, enter into a written agreement to return to work with an
employing unit covered by the provisions of this chapter.
new text end
new text begin (b) new text end Participation, the amount of time worked, and the duration of participation under
this section must be mutually agreed upon by the employing unit and the employee. The
employing unit may require up to a one-year notice of intent to participate in the program
as a condition of participation. The employing unit shall determine the time of year the
employee shall work. Unless otherwise specified in this section, the employing unit may
not require a person to waive any rights under a collective bargaining agreement as a
condition of participation under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2024, section 354.48, subdivision 4, is amended to read:
Subd. 4.
Determination by executive director.
(a) The executive director deleted text begin shalldeleted text end new text begin mustnew text end
have the member examined by deleted text begin at least two licensed physicians, licensed chiropractors, or
licensed psychologistsdeleted text end new text begin a licensed physician and any one or more medical providersnew text end .
(b) deleted text begin These physicians, chiropractors, APRNs, or psychologists with respect to a mental
impairment, shalldeleted text end new text begin The medical providers selected under paragraph (a) mustnew text end make written
reports to the executive director concerning the member's disability, including expert opinions
as to whether or not the member is permanently and totally disabled within the meaning of
section 354.05, subdivision 14.
(c) The executive director deleted text begin shalldeleted text end new text begin mustnew text end also obtain written certification from the last
employer stating whether or not the member was separated from service because of a
disability deleted text begin whichdeleted text end new text begin thatnew text end would reasonably prevent further service to the employer and as a
consequence the member is not entitled to compensation from the employer.
(d) If, upon the consideration of the reports deleted text begin of the physicians, chiropractors, APRNs, or
psychologistsdeleted text end new text begin required under paragraph (b)new text end and any other evidence presented by the member
or by others interested therein, the executive director finds that the member is totally and
permanently disabled, the executive director deleted text begin shalldeleted text end new text begin mustnew text end grant the member a disability benefit.
(e) An employee who is placed on leave of absence without compensation because of
disability is not barred from receiving a disability benefit.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Minnesota Statutes 2024, section 354.48, subdivision 6, is amended to read:
Subd. 6.
Regular physical examinations.
At least once each year during the first five
years following the allowance of a disability benefit to any member, and at least once in
every three-year period thereafter, the executive director may require the disability benefit
recipient to undergo an expert examination by deleted text begin a physician or physicians, by a chiropractor
or chiropractors, by an APRN or APRNs, or bydeleted text end one or more deleted text begin psychologists with respect to
a mental impairment,deleted text end new text begin medical providers new text end engaged by the executive director. If an examination
indicates that the member is no longer permanently and totally disabled or that the member
is engaged or is able to engage in a substantial gainful occupation, new text begin the association must
discontinue new text end payments of the disability benefit deleted text begin by the association must be discontinueddeleted text end . The
payments must be discontinued as soon as the member is reinstated to the payroll following
sick leave, but payment may not be madedeleted text begin fordeleted text end more than 60 days after the deleted text begin physicians,
chiropractors, APRNs, or psychologistsdeleted text end new text begin medical provider or medical providersnew text end engaged by
the executive director find that the person is no longer permanently and totally disabled.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2024, section 354A.011, subdivision 14b, is amended to read:
Subd. 14b.
Medical expert.
For purposes of section 354A.36, "medical expert" means
a licensed physician, new text begin licensed physician assistant, new text end licensed chiropractor, an APRN, or a
licensed psychologist, in each case working within the scope of the individual's professional
licensure.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9.
Minnesota Statutes 2024, section 354A.021, subdivision 8, is amended to read:
Subd. 8.
new text begin Annual new text end auditdeleted text begin by state auditordeleted text end .
new text begin (a) new text end The books and accounts of the deleted text begin teachers
retirement funddeleted text end association must be examined and audited deleted text begin periodically as considered
necessary by the state auditordeleted text end new text begin annuallynew text end . A full and detailed report of the examination and
audit must be made and a copy provided to the deleted text begin teachers retirement fund associationdeleted text end boarddeleted text begin
of trusteesdeleted text end . The cost of any examination and audit must be paid by the deleted text begin teachers retirement
funddeleted text end association in accordance with section 6.56. For purposes of section 6.56, the deleted text begin teachers
retirement funddeleted text end association is considered a local governmental entity equivalent to a county,
city, town, or school district.
new text begin
(b) The examination and audit required under paragraph (a) must be conducted by the
state auditor unless the state auditor has notified the association that the state auditor will
not conduct the examination and audit for a particular year. For any year that the state auditor
does not perform the examination and audit, the association must obtain the examination
and audit by a CPA firm meeting the requirements of section 326A.05.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2024, section 354A.12, subdivision 1, is amended to read:
Subdivision 1.
Employee contributions.
(a) The contribution required to be paid by
each member is the percentage of total salary specified below for the applicable program:
| Program |
Percentage of Total Salary |
||
|
deleted text begin
basic program after June 30, 2016, through June 30, 2023 deleted text end |
deleted text begin
10 deleted text end |
||
|
deleted text begin
basic program after June 30, 2023, through June 30, 2024 deleted text end |
deleted text begin
10.25 deleted text end |
||
|
deleted text begin
basic program after June 30, 2024, through June 30, 2025 deleted text end |
deleted text begin
10 deleted text end |
||
| basic program after June 30, 2025, through June 30, 2026 |
11.25 |
||
| basic program after June 30, 2026 |
deleted text begin 11.5deleted text end new text begin 10.5 new text end |
||
|
deleted text begin
coordinated program after June 30, 2016, through June 30, 2023 deleted text end |
deleted text begin
7.5 deleted text end |
||
|
deleted text begin
coordinated program after June 30, 2023, through June 30, 2024 deleted text end |
deleted text begin
7.75 deleted text end |
||
|
deleted text begin
coordinated program after June 30, 2024, through June 30, 2025 deleted text end |
deleted text begin
7.5 deleted text end |
||
| coordinated program after June 30, 2025, through June 30, 2026 |
8.75 |
||
| coordinated program after June 30, 2026 |
deleted text begin 9deleted text end new text begin 8 new text end |
||
(b) Contributions must be made by deduction from salary and must be remitted directly
to the association at least once each month.
(c) When an employee contribution rate changes for a fiscal year, the new contribution
rate is effective for the entire salary paid by the employer with the first payroll cycle reported.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2026.
new text end
Sec. 11.
Minnesota Statutes 2024, section 354A.12, subdivision 3a, is amended to read:
Subd. 3a.
Direct state aid to St. Paul Teachers Retirement Fund Association.
(a)
The state must pay $2,827,000 to the St. Paul Teachers Retirement Fund Association.
(b) In addition to other amounts specified in this subdivision, the state must pay
$7,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.
(c) In addition to the new text begin other new text end amounts specified in deleted text begin paragraphs (a) and (b)deleted text end new text begin this subdivisionnew text end ,
the state must pay $5,000,000 as state aid to the St. Paul Teachers Retirement Fund
Association.
new text begin
(d) In addition to the other amounts specified in this subdivision, the state must pay
$3,400,000 as state aid to the St. Paul Teachers Retirement Fund Association.
new text end
deleted text begin (d)deleted text end new text begin (e)new text end The aid under this subdivision is payable October 1 annually. The commissioner
of management and budget must pay the aid specified in this subdivision. The amount
required is appropriated annually from the general fund to the commissioner of management
and budget.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2026.
new text end
Sec. 12.
Minnesota Statutes 2024, section 354A.12, subdivision 3c, is amended to read:
Subd. 3c.
Termination of supplemental contributions and direct matching and state
aid.
The supplemental contributions payable to the St. Paul Teachers Retirement Fund
Association by Independent School District No. 625 under section 423A.02, subdivision 3,
and the aid under subdivision 3a, paragraphs (a) to deleted text begin (c)deleted text end new text begin (d)new text end , continue until the earlier of:
(1) the first day of the fiscal year following three consecutive fiscal years in which, for
each fiscal year, the actuarial value of assets of the fund equals or exceeds 100 percent of
the actuarial accrued liability as reported by the actuary retained under section 356.214 in
the annual actuarial valuation prepared under section 356.215; or
(2) July 1, 2048.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2026.
new text end
Sec. 13.
Minnesota Statutes 2024, section 356.219, subdivision 1, is amended to read:
Subdivision 1.
Report required.
(a) The Bloomington Fire Department Relief
Association, volunteer firefighters relief associations governed by sections 424A.091 to
424A.095, the St. Paul Teachers Retirement Fund Association, and any Minnesota public
pension plan that is not fully invested through the State Board of Investment, must report
the information specified in subdivision 3 to the state auditor. The state auditor may prescribe
a form or forms for the purposes of the reporting requirements contained in this section.
(b) For purposes of this section, a pension plan is fully invested through the State Board
of Investment during a given calendar year if all assets of the pension plan beyond sufficient
cash equivalent investments to cover six months of expected expenses are invested under
section 11A.17.
(c) A public pension plan to which subdivision 3, paragraph (b) or (c), applies is not
required to file the report required by this subdivision for a given calendar year if the pension
plan's most recent annual financial audit was conducted by the state auditor.new text begin The St. Paul
Teachers Retirement Fund Association is not required to file the report required by this
subdivision for a given calendar year if the St. Paul Teachers Retirement Fund Association:
new text end
new text begin
(1) is audited by the state auditor under section 354A.021, subdivision 8, for the most
recent annual audit; or
new text end
new text begin
(2) submits to the state auditor an annual financial audit for the most recent annual audit
that was conducted in accordance with auditing standards generally accepted in the United
States of America.
new text end
(d) This section does not apply to the following plans:
(1) the Minnesota unclassified employees retirement program under chapter 352D;
(2) the public employees defined contribution plan under chapter 353D;
(3) the individual retirement account plans under chapters 354B and 354D;
(4) the higher education supplemental retirement plan under chapter 354C;
(5) any alternative retirement benefit plan established under section 383B.914;
(6) the University of Minnesota faculty retirement plan and supplemental plan; and
(7) any other statewide plan required to be invested by the State Board of Investment
under section 11A.23.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Laws 2022, chapter 65, article 3, section 1, subdivision 2, as amended by Laws
2024, chapter 102, article 1, section 8, is amended to read:
Subd. 2.
Temporary suspension of earnings limitation for teachers covered by TRA
and SPTRFA.
(a) Notwithstanding Minnesota Statutes, section 354.44, subdivision 5, no
portion of a reemployed teacher's annuity paid under Minnesota Statutes, chapter 354, shall
be deferred regardless of the amount of the salary earned from the teaching service during
the preceding fiscal year. This paragraph applies only to salary earned during fiscal years
deleted text begin 2022, 2023, 2024,deleted text end 2025, 2026, deleted text begin anddeleted text end 2027new text begin , 2028, 2029, and 2030new text end and annuity payments made
during calendar years deleted text begin 2023, 2024, 2025,deleted text end 2026, 2027, deleted text begin anddeleted text end 2028new text begin , 2029, 2030, and 2031new text end .
(b) Notwithstanding Minnesota Statutes, section 354A.31, subdivision 3, no portion of
a reemployed teacher's annuity paid under Minnesota Statutes, chapter 354A, shall be
deferred or forfeited regardless of the amount of the salary earned from the teaching service
during the preceding calendar year. This paragraph applies only to salary earned during
calendar years deleted text begin 2022, 2023, 2024,deleted text end 2025, 2026, deleted text begin anddeleted text end 2027new text begin , 2028, 2029, and 2030new text end and annuity
payments made during calendar years deleted text begin 2023, 2024, 2025,deleted text end 2026, 2027, deleted text begin anddeleted text end 2028new text begin , 2029, 2030,
and 2031new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 15.
Laws 2022, chapter 65, article 3, section 1, subdivision 3, as amended by Laws
2024, chapter 102, article 1, section 9, is amended to read:
Subd. 3.
Expiration date.
This section expires effective January 1, deleted text begin 2029deleted text end new text begin 2032new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 4
PROBATION AND TELECOMMUNICATOR RETIREMENT SUBPLAN OF THE
MSRS GENERAL STATE EMPLOYEES RETIREMENT PLAN
Section 1.
Minnesota Statutes 2024, section 352.75, subdivision 2, is amended to read:
Subd. 2.
New employees.
All persons employed by the Metropolitan Council as
employees of the Transit Operating Division arenew text begin :
new text end
new text begin (1)new text end members of the general state employees retirement plan of the Minnesota State
Retirement Systemnew text begin unless specifically covered by the probation and telecommunicator
retirement subplan under section 352.88;new text end and deleted text begin are
deleted text end
new text begin (2)new text end state employees for purposes of this chapter unless specifically excluded under section
352.01, subdivision 2b.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 2.
new text begin
[352.88] PROBATION OFFICERS AND PUBLIC SAFETY
TELECOMMUNICATORS.
new text end
new text begin Subdivision 1. new text end
new text begin Policy. new text end
new text begin
It is the policy of the legislature that special consideration should
be given to the pension benefits for employees of the state and governmental subdivisions
who devote their time and skills to assisting the community and the courts as probation
officers or serving the public and public safety partners as telecommunicators. Since this
work can be hazardous or high stress, special provisions are made by this section for earlier
full retirement than is provided to members of the general state employees retirement plan
under section 352.01, subdivision 25. The additional cost of this benefit is split between the
employees and employers.
new text end
new text begin Subd. 2. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section and section 352.881, each of the
following terms has the meaning given unless the language or context clearly indicates that
a different meaning is intended. The definitions in section 352.01 apply to terms used in
this section and section 352.881 unless the term is defined in this section.
new text end
new text begin
(b) "Committee" means the probation and telecommunicator subplan membership
committee established pursuant to section 352.881.
new text end
new text begin
(c) "Employee organization" has the meaning given in section 179A.03, subdivision 6.
new text end
new text begin
(d) "General plan" means the general state employees retirement plan of the Minnesota
State Retirement System.
new text end
new text begin
(e) "Member" means an individual to whom this section applies under subdivision 3.
new text end
new text begin
(f) "Normal retirement age" means age 60.
new text end
new text begin
(g) "Offset amount" means an amount available to offset the cost to purchase credit for
past service upon the election by a member under subdivision 6, if state funding becomes
available.
new text end
new text begin
(h) "Past service" means allowable service credited to a member before January 1, 2027,
and covered by the general plan that would have been service covered by this section had
this section been in effect before January 1, 2027.
new text end
new text begin
(i) "Probation officer" means a state employee, as defined in section 352.01, employed
by the Department of Corrections:
new text end
new text begin
(1) as:
new text end
new text begin
(i) a corrections agent;
new text end
new text begin
(ii) a corrections agent career;
new text end
new text begin
(iii) a corrections agent senior;
new text end
new text begin
(iv) a corrections field service district supervisor;
new text end
new text begin
(v) a corrections community services regional director;
new text end
new text begin
(vi) a corrections field services director;
new text end
new text begin
(vii) a corrections field services program director; or
new text end
new text begin
(2) whom the commissioner of corrections or the commissioner's delegate certifies, in
the manner prescribed by the executive director, as having substantial responsibility for:
new text end
new text begin
(i) providing community supervision services or overseeing the delivery of probation
services; or
new text end
new text begin
(ii) supervising employees eligible under item (i).
new text end
new text begin
(j) "Public safety telecommunicator" means a state employee, as defined in section
352.01, employed by the Department of Public Safety or Metropolitan Council:
new text end
new text begin
(1) as:
new text end
new text begin
(i) a radio communications operator;
new text end
new text begin
(ii) a radio communications supervisor;
new text end
new text begin
(iii) a public safety answering point (PSAP) manager, as defined in Minnesota Rules,
part 7580.0100, subpart 12;
new text end
new text begin
(iv) a supervisor, transit control center; or
new text end
new text begin
(2) whom the commissioner of public safety, the commissioner's delegate, the Metro
Transit general manager, or the general manager's delegate, as applicable, certifies, in the
manner prescribed by the executive director, as having substantial responsibility for:
new text end
new text begin
(i) receiving, processing, transmitting, or dispatching emergency and nonemergency
calls for law enforcement, fire, emergency medical, or other public safety services; or
new text end
new text begin
(ii) supervising employees eligible under item (i).
new text end
new text begin
(k) "Vesting" or "vested" means obtaining or having obtained a nonforfeitable entitlement
to an annuity or benefit under this section by having earned credit for not less than three
years of allowable service covered by this section or the general plan.
new text end
new text begin Subd. 3. new text end
new text begin Eligibility. new text end
new text begin
This section applies to probation officers and public safety
telecommunicators, unless the probation officer or public safety telecommunicator is age
60 or older with at least three years of allowable service in the general plan on January 1,
2027.
new text end
new text begin Subd. 4. new text end
new text begin Retirement annuity. new text end
new text begin
(a) After separation from state service, a member who
has attained at least normal retirement age and is vested is entitled, upon application, to a
normal retirement annuity. The normal retirement annuity is equal to the member's average
salary multiplied by 1.9 percent for each year of allowable service.
new text end
new text begin
(b) After separation from state service, a member who has reached the age of 55 and is
vested is entitled, upon application, to an early retirement annuity that is actuarially equivalent
to the normal retirement annuity.
new text end
new text begin
(c) Allowable service credited to a member under this section is credited in lieu of service
credited to the general plan.
new text end
new text begin Subd. 5. new text end
new text begin Additional contributions. new text end
new text begin
(a) A member must make an additional employee
contribution of 2.71 percent of salary.
new text end
new text begin
(b) The employer of a member must make an additional employer contribution of two
percent of salary.
new text end
new text begin
(c) Contributions under paragraphs (a) and (b) are in addition to the contributions required
by section 352.04, subdivisions 2 and 3.
new text end
new text begin
(d) Contributions under paragraphs (a) and (b) must be made in the manner provided in
section 352.04, subdivisions 4 to 6.
new text end
new text begin Subd. 6. new text end
new text begin Purchase of credit for past service. new text end
new text begin
(a) A member is entitled to elect a onetime
purchase of credit for periods of past service to be added to the member's allowable service
covered by this section and used in calculating the member's retirement annuity. The member
must repay any refunds of employee contributions previously received from the general
plan before purchasing past service credit under this section.
new text end
new text begin
(b) A member may request an estimate of the cost of a service credit purchase under
this paragraph.
new text end
new text begin
(1) A member may file a request with the executive director for an estimate of the
purchase price for up to three different periods of past service by filing an application on a
form approved by the executive director.
new text end
new text begin
(2) The member must file the request for an estimate before filing an election to purchase
past service under paragraph (c).
new text end
new text begin
(3) The member must submit with the estimate request payment of the administrative
fee in the amount of $250 to cover the cost of preparing the estimates. If the member proceeds
with the purchase, the executive director must credit the administrative fee toward the
purchase price.
new text end
new text begin
(4) The executive director must estimate the purchase price using the assumptions and
applying any offset amount as directed under subdivision 7 for the periods of past service
requested by the member and provide the estimates to the member.
new text end
new text begin
(c) To purchase credit for past service, a member must file an application with the
executive director on a form approved by the executive director before the annuity starting
date of the member's retirement annuity or benefit. The application must:
new text end
new text begin
(1) include documentation of the member's eligibility to make the purchase, signed
written permission to allow the executive director to request and receive verification of
applicable facts and eligibility requirements from the member's employer, and any other
relevant information that the executive director may require;
new text end
new text begin
(2) state the amount of credit for past service the member plans to purchase and be
accompanied by a certification from one or more employers that the past service fulfills the
requirements under subdivision 2, paragraph (h); and
new text end
new text begin
(3) if the member did not previously pay the administrative fee under paragraph (b),
include payment of the administrative fee of $250 to cover the cost of calculating the purchase
price. If the member proceeds with the purchase, the executive director must credit the
administrative fee toward the purchase price.
new text end
new text begin
(d) The executive director must apply the assumptions and any offset amount under
subdivision 7 to calculate the purchase price and notify the member. If the member elects
to make the purchase of credit for past service, the member must arrange for the transfer of
pretax money from another retirement plan. Payment must be made in one lump sum prior
to the annuity starting date of the member's retirement annuity or benefit.
new text end
new text begin
(e) Upon receipt of payment, the executive director must grant the member service credit
for the period of past service for which credit was purchased.
new text end
new text begin Subd. 7. new text end
new text begin Determination of past service purchase price. new text end
new text begin
(a) The executive director
must calculate the purchase price for the period of past service elected by the member. The
purchase price is an amount equal to the actuarial present value, on the date of payment, of
the amount of the additional retirement annuity obtained by the additional service credit
being purchased minus any offset amount.
new text end
new text begin
(b) The executive director must calculate the purchase price by:
new text end
new text begin
(1) using the investment return assumption specified in section 356.215, subdivision 8,
and the mortality table in effect for the general plan;
new text end
new text begin
(2) assuming continuous future service in the plan until the plan's minimum requirements
for normal retirement or retirement with an annuity unreduced for retirement at an early
age are met with the additional service credit purchased;
new text end
new text begin
(3) assuming a full-time equivalent salary or actual salary, whichever is greater, and a
future salary history that includes annual salary increases at the applicable salary increase
rate for the plan; and
new text end
new text begin
(4) reducing the amount determined under clauses (1) to (3) by any offset amount.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 3.
new text begin
[352.881] SUBPLAN COVERAGE CHANGES.
new text end
new text begin Subdivision 1. new text end
new text begin Standing review committees. new text end
new text begin
(a) The commissioner of corrections must
appoint a standing review committee to review and determine positions or employees of
the Department of Corrections that should be covered by section 352.88. The commissioner
of public safety must appoint a standing review committee to review and determine positions
or employees of the Department of Public Safety that should be covered by section 352.88.
The Metro Transit general manager must appoint a standing review committee to review
and determine positions or employees of the Metropolitan Council that should be covered
by section 352.88.
new text end
new text begin
(b) The Department of Corrections, Department of Public Safety, and Metropolitan
Council must each establish a procedure for the department's or agency's respective
committee to evaluate coverage by section 352.88. Each committee must follow:
new text end
new text begin
(1) subdivision 2 when evaluating a change in the title of an employment position listed
in section 352.88, subdivision 2, paragraph (i), clause (1), or (j), clause (1); and
new text end
new text begin
(2) subdivision 3 when evaluating requests for starting or ceasing coverage by section
352.88.
new text end
new text begin
(c) If a committee has received one or more requests for changes to the title of an
employment position or the commencement or cessation of coverage of an employee by
section 352.88, the committee must convene at least as frequently as once every three
months. If a committee has not received any requests during a three-month period, the
review committee is not required to convene a meeting.
new text end
new text begin
(d) Each committee must retain each request to the committee and the related
documentation and final determination for an employee or employment position in the
committee's respective department or agency.
new text end
new text begin
(e) Meetings of a standing review committee are not subject to chapter 13D.
new text end
new text begin
(f) A standing review committee is not an agency for the purposes of sections 15.0597
and 15.0599.
new text end
new text begin Subd. 2. new text end
new text begin Procedures for changing employment titles. new text end
new text begin
(a) The applicable standing
review committee must review a change in the title of an employment position listed in
section 352.88, subdivision 2, paragraph (i), clause (1), or (j), clause (1), and determine
whether the responsibilities of the employment position satisfy the requirements under
section 352.88, subdivision 2, paragraph (i) or (j).
new text end
new text begin
(b) If the committee determines that the responsibilities of the employment position
have not changed, or the responsibilities of the employment position have changed but the
changes do not affect the eligibility of the employment position for coverage by section
352.88, the department or agency affected by the determination must:
new text end
new text begin
(1) submit the title change to the executive director of the Legislative Commission on
Pensions and Retirement before the start of the next legislative session and request legislation
to replace the title in section 352.88, subdivision 2, paragraph (i) or (j), as applicable, with
the new title; and
new text end
new text begin
(2) notify each employee in the employment position no later than 30 days after the
effective date of the title change that the title change will not affect the continued coverage
of the employee by section 352.88 and that the department or agency, as applicable, has
submitted a request to the legislature to change the title in section 352.88, subdivision 2,
paragraph (i) or (j), as applicable.
new text end
new text begin
(c) If the committee determines that the responsibilities of the employment position have
changed and the changes result in the employment position no longer being qualified for
coverage by section 352.88, the department or agency affected by the determination must
communicate the committee's determination to all affected employees no later than 10 days
after the date of the meeting at which the determination was made and inform the employees
of the right to appeal the determination under subdivision 4.
new text end
new text begin
(d) The department or agency affected by the determination to remove a title must contact
the executive director of the Legislative Commission on Pensions and Retirement before
the start of the next legislative session and request legislation to remove the title in section
352.88, subdivision 2, paragraph (i) or (j), as applicable, if:
new text end
new text begin
(1) an employee appeals the determination and the determination is upheld; or
new text end
new text begin
(2) an employee does not appeal the determination.
new text end
new text begin
(e) The committee must include an effective date in any determination to change or
remove an employment position from the lists in section 352.88, subdivision 2, paragraph
(i) or (j). The effective date may be retroactive for a determination to change an employment
position.
new text end
new text begin Subd. 3. new text end
new text begin Procedures for starting or ceasing coverage. new text end
new text begin
(a) The applicable standing
review committee must consider requests to provide coverage by section 352.88 to an
employee who satisfies the requirements of section 352.88, subdivision 2, paragraph (i),
clause (2), or (j), clause (2), or to cease coverage of an employee who does not satisfy the
requirements of section 352.88, subdivision 2, paragraph (i), clause (2), or (j), clause (2).
new text end
new text begin
(b) An employee, an employee's employee organization, or an employee's manager may
submit a request to the committee to provide coverage to an employee who satisfies the
requirements of section 352.88, subdivision 2, paragraph (i), clause (2), or (j), clause (2).
The request must include:
new text end
new text begin
(1) a signed and dated position description for the employee's position; and
new text end
new text begin
(2) a statement signed by the employee that describes the extent to which the employee's
job duties meet the requirements of section 352.88, subdivision 2, paragraph (i), clause (2),
or (j), clause (2).
new text end
new text begin
(c) An employer may submit a request to the committee to cease coverage of an employee
who no longer satisfies the requirements of section 352.88, subdivision 2, paragraph (i),
clause (2), or (j), clause (2). The request must include:
new text end
new text begin
(1) a signed and dated position description for the employee's position; and
new text end
new text begin
(2) a statement signed by the employee's employer describing how the employee no
longer meets the requirements of section 352.88, subdivision 2, paragraph (i), clause (2),
or (j), clause (2).
new text end
new text begin
(d) After making a determination of coverage or no coverage for an employee, the
department or agency affected by the determination must communicate the committee's
determination to the affected employee no later than ten days after the date of the meeting
at which the determination was made and inform the employee of the right to appeal the
determination under subdivision 4.
new text end
new text begin
(e) If after making a determination of coverage, the committee determines that an
employment position should be added to the list of employment positions in section 352.88,
subdivision 2, paragraph (i) or (j), as applicable, the department or agency affected by the
determination must submit the employment position addition to the executive director of
the Legislative Commission on Pensions and Retirement before the start of the next legislative
session and request legislation to make the change.
new text end
new text begin
(f) The committee must include an effective date in any determination that an employee
must begin to receive coverage under section 352.88 or that coverage must cease. The
effective date may be retroactive to the date on which the coverage requirements were first
satisfied or were no longer met.
new text end
new text begin Subd. 4. new text end
new text begin Right to appeal. new text end
new text begin
(a) No later than 30 days after receiving a determination under
subdivision 2 or 3, the affected employee may appeal the determination from a standing
review committee by filing an appeal with the human resources director or the chief human
resources director of the department or agency, as applicable, in which the employee is
employed. The appeal must include:
new text end
new text begin
(1) the reasons for the appeal, including the reasons the determination should be reversed;
and
new text end
new text begin
(2) new or additional information, if any, not previously submitted or considered by the
committee, including a new or revised position description.
new text end
new text begin
(b) The appeal must be decided by the commissioner of corrections if the employee is
an employee of the Department of Corrections, by the commissioner of public safety if the
employee is an employee of the Department of Public Safety, or by the Metro Transit general
manager if the employee is an employee of the Metropolitan Council. The decision of the
commissioners or general manager, as applicable, is final.
new text end
new text begin
(c) A determination not timely appealed under paragraph (a) is not entitled to further
administrative or judicial review. A determination under subdivision 2 or 3 or an appeal
decided under paragraph (b) may not be appealed under section 356.96.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 4.
Minnesota Statutes 2024, section 352.951, is amended to read:
352.951 APPLICABILITY OF GENERAL LAW.
Except as otherwise provided, this chapter applies to covered correctional employees,
military affairs personnel covered under section 352.85, Transportation Department pilots
covered under section 352.86, deleted text begin anddeleted text end state fire marshal employees new text begin covered new text end under section
352.87new text begin , and probation officers and public safety telecommunicators covered under section
352.88new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 5.
Minnesota Statutes 2024, section 356.315, subdivision 9, is amended to read:
Subd. 9.
Future benefit accrual rate increases.
After January 2, 1998, benefit accrual
rate increases under section 352.115, subdivision 3; 352.87, subdivision 3; new text begin 352.88,
subdivision 4; new text end 352.93, subdivision 3; 352.95, subdivision 1; 352B.08, subdivision 2; 352B.10,
subdivision 1; 353.29, subdivision 3; 353.651, subdivision 3; 353.656, subdivision 1, 1a,
or 3a; 353E.04, subdivision 3; 353E.06, subdivision 1; 354.44, subdivision 6; 354A.31,
subdivision 4 or 4a; 356.30, subdivision 1; 490.121, subdivision 22; or 490.124, subdivision
1, must apply only to allowable service or formula service rendered after the effective date
of the benefit accrual rate increase.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 6. new text begin APPROPRIATIONS.
new text end
new text begin
(a) $272,000 in fiscal year 2027 is appropriated from the general fund to the commissioner
of corrections for the purposes of this act. The base for this appropriation is $545,000 in
fiscal year 2028 and $545,000 in fiscal year 2029.
new text end
new text begin
(b) $14,000 in fiscal year 2027 is appropriated from the general fund to the commissioner
of public safety for the purposes of this act. The base for this appropriation is $29,000 in
fiscal year 2028 and $29,000 in fiscal year 2029.
new text end
new text begin
(c) $40,000 in fiscal year 2027 is appropriated from the general fund to the Metropolitan
Council for the purposes of this act. The base for this appropriation is $80,000 in fiscal year
2028 and $80,000 in fiscal year 2029.
new text end
new text begin
(d) $7,000 in fiscal year 2027 is appropriated from the trunk highway fund to the
commissioner of public safety for the purposes of this act. The base for this appropriation
is $14,000 in fiscal year 2028 and $14,000 in fiscal year 2029.
new text end
ARTICLE 5
LOCAL GOVERNMENTAL PROBATION AND TELECOMMUNICATOR
RETIREMENT PLAN
Section 1.
Minnesota Statutes 2025 Supplement, section 353.01, subdivision 2a, is amended
to read:
Subd. 2a.
Included employees; mandatory membership.
(a) Any public employee
whose salary from one governmental subdivision is expected to exceed $425 in any month
and who is not specifically excluded under subdivision 2b or has not been provided an
option to participate under subdivision 2d, whether individually or by action of the
governmental subdivision, must participate beginning on the employee's first day of
employment as a member of the association with retirement coverage by the general
employees retirement plan under this chapter, the public employees police and fire plan
under this chapter, deleted text begin ordeleted text end the local government correctional employees retirement plan under
chapter 353E,new text begin or the local government probation and telecommunicator retirement plan
under chapter 353H,new text end whichever applies. For any employee whose salary is not expected to
exceed $425 in any month, membership commences on the first day that the employee's
salary exceeds $425 and the other eligibility criteria are met. Public employees include but
are not limited to:
(1) persons whose salary meets the threshold in this paragraph from employment in one
or more positions within one governmental subdivision;
(2) elected county sheriffs;
(3) persons who are appointed, employed, or contracted to perform governmental
functions that by law or local ordinance are required of a public officer, including, but not
limited to:
(i) town and city clerk or treasurer;
(ii) county auditor, treasurer, or recorder;
(iii) city manager as defined in section 353.028 who does not exercise the option provided
under subdivision 2d; or
(iv) emergency management director, as provided under section 12.25;
(4) physicians under section 353D.01, subdivision 2, who do not elect public employees
defined contribution plan coverage under section 353D.02, subdivision 2;
(5) full-time employees of the Dakota County Agricultural Society;
(6) employees of the Red Wing Port Authority who were first employed by the Red
Wing Port Authority before May 1, 2011, and who are not excluded employees under
subdivision 2b;
(7) employees of the Seaway Port Authority of Duluth who are not excluded employees
under subdivision 2b;
(8) employees of the Stevens County Housing and Redevelopment Authority who were
first employed by the Stevens County Housing and Redevelopment Authority before May
1, 2014, and who are not excluded employees under subdivision 2b;
(9) employees of the Minnesota River Area Agency on Aging who were first employed
by a Regional Development Commission before January 1, 2016, and who are not excluded
employees under subdivision 2b; and
(10) employees of the Public Employees Retirement Association.
(b) A public employee or elected official who was a member of the association on June
30, 2002, based on employment that qualified for membership coverage by the public
employees retirement plan or the public employees police and fire plan under this chapter,
or the local government correctional employees retirement plan under chapter 353E as of
June 30, 2002, retains that membership for the duration of the person's employment in that
position or incumbency in elected office. Except as provided in subdivision 28, the person
shall participate as a member until the employee or elected official terminates public
employment under subdivision 11a or terminates membership under subdivision 11b.
(c) If the salary of an included public employee is less than $425 in any subsequent
month, the member retains membership eligibility.
(d) For the purpose of participation in the general employees retirement plan, public
employees include employees who were members of the former Minneapolis Employees
Retirement Fund on June 29, 2010.
Sec. 2.
Minnesota Statutes 2025 Supplement, section 353.01, subdivision 2b, is amended
to read:
Subd. 2b.
Excluded employees.
(a) The following public employees are not eligible to
participate as members of the association with retirement coverage by the general employees
retirement plan, the local government correctional employees retirement plan under chapter
353E, deleted text begin ordeleted text end the public employees police and fire plannew text begin , or the local government probation and
telecommunicator retirement plan under chapter 353Hnew text end :
(1) persons whose salary from one governmental subdivision never exceeds or is never
expected to exceed $425 in a month;
(2) public officers who are elected to a governing body, city mayors, or persons who
are appointed to fill a vacancy in an elected office of a governing body, whose term of office
commences on or after July 1, 2002, for the service to be rendered in that elected position;
(3) election judges and persons employed solely to administer elections;
(4) patient and inmate personnel who perform services for a governmental subdivision;
(5) except as otherwise specified in subdivision 12a, employees who are employed solely
in a temporary position as defined under subdivision 12a, and employees who resign from
a nontemporary position and accept a temporary position within 30 days of that resignation
in the same governmental subdivision;
(6) employees who are employed by reason of work emergency caused by fire, flood,
storm, or similar disaster, but if the person becomes a probationary or provisional employee
within the same pay period, other than on a temporary basis, the person is a "public
employee" retroactively to the beginning of the pay period;
(7) employees who by virtue of their employment in one governmental subdivision are
required by law to be a member of and to contribute to any of the plans or funds administered
by the Minnesota State Retirement System, the Teachers Retirement Association, or the St.
Paul Teachers Retirement Fund Association, but this exclusion must not be construed to
prevent a person from being a member of and contributing to the Public Employees
Retirement Association and also belonging to and contributing to another public pension
plan or fund for other service occurring during the same period of time, and a person who
meets the definition of "public employee" in subdivision 2 by virtue of other service occurring
during the same period of time becomes a member of the association unless contributions
are made to another public retirement plan on the salary based on the other service or to the
Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
(8) persons who are members of a religious order and are excluded from coverage under
the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance
of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if
no irrevocable election of coverage has been made under section 3121(r) of the Internal
Revenue Code of 1954, as amended;
(9) persons who are:
(i) employed by a governmental subdivision who have not reached the age of 23 and
who are enrolled on a full-time basis to attend or are attending classes on a full-time basis
at an accredited school, college, or university in an undergraduate, graduate, or
professional-technical program, or at a public or charter high school;
(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist
interns and are serving in a degree or residency program in a public hospital or in a public
clinic; or
(iii) students who are serving for a period not to exceed five years in an internship or a
residency program that is sponsored by a governmental subdivision, including an accredited
educational institution;
(10) persons who hold a part-time adult supplementary technical college license who
render part-time teaching service in a technical college;
(11) for the first three years of employment, foreign citizens who are employed by a
governmental subdivision, except that the following foreign citizens must be considered
included employees under subdivision 2a:
(i) H-1B, H-1B1, and E-3 status holders;
(ii) employees of Hennepin County or Hennepin Healthcare System, Inc.;
(iii) employees legally authorized to work in the United States for three years or more;
and
(iv) employees otherwise required to participate under federal law;
(12) public hospital employees who elected not to participate as members of the
association before 1972 and who did not elect to participate from July 1, 1988, to October
1, 1988;
(13) volunteer ambulance service personnel, as defined in subdivision 35, but persons
who serve as volunteer ambulance service personnel may still qualify as public employees
under subdivision 2 and may be members of the Public Employees Retirement Association
and participants in the general employees retirement plan or the public employees police
and fire plan, whichever applies, on the basis of compensation received from public
employment service other than service as volunteer ambulance service personnel;
(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision
36, engaging in activities undertaken as part of volunteer firefighter duties, but a person
who is a volunteer firefighter may still qualify as a public employee under subdivision 2
and may be a member of the Public Employees Retirement Association and a participant
in the general employees retirement plan or the public employees police and fire plan,
whichever applies, on the basis of compensation received from public employment activities
other than those as a volunteer firefighter;
(15) employees in the building and construction trades, as follows:
(i) pipefitters and associated trades personnel employed by Independent School District
No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters
local 455 pension plan who were either first employed after May 1, 1997, or, if first employed
before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section
12;
(ii) electrical workers, plumbers, carpenters, and associated trades personnel employed
by Independent School District No. 625, St. Paul, or the city of St. Paul, with coverage
under a collective bargaining agreement by the electrical workers local 110 pension plan,
the plumbers local 34 pension plan, or the carpenters local 322 pension plan who were either
first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be
excluded under Laws 2000, chapter 461, article 7, section 5;
(iii) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters,
allied tradesworkers, and plasterers employed by the city of St. Paul or Independent School
District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
bricklayers and allied craftworkers local 1 pension plan, the cement masons local 633
pension plan, the glaziers and glassworkers local 1324 pension plan, the painters and allied
trades local 61 pension plan, or the plasterers local 265 pension plan who were either first
employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded
under Laws 2001, First Special Session chapter 10, article 10, section 6;
(iv) plumbers employed by the Metropolitan Airports Commission, with coverage under
a collective bargaining agreement by the plumbers local 34 pension plan, who were either
first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be
excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;
(v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation
Board, with coverage under a collective bargaining agreement by the electrical workers
local 292 pension plan or the pipefitters local 539 pension plan, who were first employed
before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11,
section 5;
(vi) laborers and associated trades personnel employed by the city of St. Paul or
Independent School District No. 625, St. Paul, who are designated as temporary employees
with coverage under a collective bargaining agreement by a multiemployer plan as defined
in section 356.27, subdivision 1, who were either first employed on or after June 1, 2018,
or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter
211, article 16, section 13; and
(vii) employees who are trades employees as defined in section 356.27, subdivision 1,
first hired on or after July 1, 2020, by the city of St. Paul or Independent School District
No. 625, St. Paul, except for any trades employee for whom contributions are made under
section 356.24, subdivision 1, clause (8), (9), or (10), by either employer to a multiemployer
plan as defined in section 356.27, subdivision 1;
(16) employees who are hired after June 30, 2002, solely to fill seasonal positions under
subdivision 12b which are limited in duration by the employer to a period of six months or
less in each year of employment with the governmental subdivision;
(17) persons who are provided supported employment or work-study positions by a
governmental subdivision and who participate in an employment or industries program
maintained for the benefit of these persons where the governmental subdivision limits the
position's duration to up to five years, including persons participating in a federal or state
subsidized on-the-job training, work experience, senior citizen, youth, or unemployment
relief program where the training or work experience is not provided as a part of, or for,
future permanent public employment;
(18) independent contractors and the employees of independent contractors;
(19) reemployed annuitants of the association during the course of that reemployment;
(20) persons appointed to serve on a board or commission of a governmental subdivision
or an instrumentality thereof;
(21) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan
Transit Commission who are members of the International Brotherhood of Teamsters Local
638 and who are, by virtue of that employment, members of the International Brotherhood
of Teamsters Central States pension plan; and
(22) persons employed by the Duluth Transit Authority or any subdivision thereof who
are members of the Teamsters General Local Union 346 and who are, by virtue of that
employment, members of the Central States Southeast and Southwest Areas Pension Fund.
(b) Any person performing the duties of a public officer in a position defined in
subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
employee of an independent contractor.
Sec. 3.
Minnesota Statutes 2024, section 353.01, subdivision 16, is amended to read:
Subd. 16.
Allowable service; limits and computation.
(a) "Allowable service" means:
(1) service during years of actual membership in the course of which employee deductions
were withheld from salary and contributions were made at the applicable rates under section
353.27, 353.65, deleted text begin ordeleted text end 353E.03new text begin , or 353H.04new text end ;
(2) periods of service covered by payments in lieu of salary deductions under sections
353.27, subdivisions 12 and 12a, and 353.35;
(3) service in years during which the public employee was not a member but for which
the member later elected, while a member, to obtain credit by making payments to the fund
as permitted by any law then in effect;
(4) a period of authorized leave of absence during which the employee receives pay as
specified in subdivision 10, paragraph (a), clause (4) or (5), from which deductions for
employee contributions are made, deposited, and credited to the fund;
(5) a period of authorized leave of absence without pay, or with pay that is not included
in the definition of salary under subdivision 10, paragraph (a), clause (4) or (5), for which
salary deductions are not authorized, and for which a member obtained service credit for
up to 12 months of the authorized leave period by payment under section 353.0162, to the
fund made in place of salary deductions;
(6) an authorized temporary or seasonal layoff under subdivision 12, limited to three
months allowable service per authorized temporary or seasonal layoff in one calendar year.
An employee who has received the maximum service credit allowed for an authorized
temporary or seasonal layoff must return to public service and must obtain a minimum of
three months of allowable service subsequent to the layoff in order to receive allowable
service for a subsequent authorized temporary or seasonal layoff;
(7) a period of uniformed services leave purchased under section 353.014;
(8) a period of military service purchased under section 353.0141; or
(9) a period of reduced salary purchased under section 353.0162.
(b) No member may receive more than 12 months of allowable service credit in a year
either for vesting purposes or for benefit calculation purposes.
(c) For an active member who was an active member of the former Minneapolis
Firefighters Relief Association on December 29, 2011, "allowable service" is the period of
service credited by the Minneapolis Firefighters Relief Association as reflected in the
transferred records of the association up to December 30, 2011, and the period of service
credited under paragraph (a), clause (1), after December 30, 2011. For an active member
who was an active member of the former Minneapolis Police Relief Association on December
29, 2011, "allowable service" is the period of service credited by the Minneapolis Police
Relief Association as reflected in the transferred records of the association up to December
30, 2011, and the period of service credited under paragraph (a), clause (1), after December
30, 2011.
Sec. 4.
Minnesota Statutes 2024, section 353.01, subdivision 37, is amended to read:
Subd. 37.
Normal retirement age.
(a) "Normal retirement age" means age 65 for a
person who first became a public employee or a member of a pension fund listed in section
356.30, subdivision 3, clause (6), before July 1, 1989. For a person who first becomes a
public employee after June 30, 1989, "normal retirement age" means the higher of age 65
or "retirement age," as defined in United States Code, title 42, section 416(l), as amended,
but not to exceed age 66.
(b) "Normal retirement age" means age 55 for a person who is a member of a pension
fund listed in section 356.30, subdivision 3, clauses (7) and (8).
new text begin
(c) "Normal retirement age" means the age stated in section 353H.01, subdivision 6, for
a member of the local government probation and telecommunicator retirement plan.
new text end
Sec. 5.
Minnesota Statutes 2024, section 353.0141, subdivision 1, is amended to read:
Subdivision 1.
Service credit purchase authorized.
(a) Unless prohibited under
paragraph (b), a member is eligible to purchase allowable service credit, not to exceed five
cumulative years of allowable service credit, for one or more periods of service in the
uniformed services, as defined in United States Code, title 38, section 4303(13), if:
(1) the member has at least three years of allowable service credit with the general
employees retirement plan, the local government correctional employees retirement plan
under chapter 353E, deleted text begin ordeleted text end the public employees police and fire retirement plannew text begin , or the local
government probation and telecommunicator retirement plan under chapter 353Hnew text end ;
(2) the member's current period of employment is at least six months; and
(3) one of the following applies:
(i) the member's service in the uniformed services occurred before becoming a public
employee as defined in section 353.01, subdivision 2; or
(ii) the member failed to obtain service credit for a uniformed services leave of absence
under section 353.01, subdivision 16, paragraph (a), clause (8).
(b) A service credit purchase is prohibited if:
(1) the member separated from service in the uniformed services with a dishonorable
or bad conduct discharge or under other than honorable conditions; or
(2) the member has purchased or otherwise received service credit from any Minnesota
public employee pension plan for the same period of service in the uniformed services.
(c) When purchasing a period of service, if the period of service in the uniformed services
is one year or less, then the member must purchase the full period of service. If the period
of service in the uniformed services is longer than one year, the member may purchase the
full period, not to exceed five cumulative years, or may purchase a portion of the period of
service. If a member wishes to purchase a portion of the period of service, the portion must:
(1) not be less than one year; and
(2) be in increments of six months of service.
Sec. 6.
Minnesota Statutes 2024, section 353.031, subdivision 1, is amended to read:
Subdivision 1.
Application.
(a) This section applies to all disability determinations for
the public employees general fund, the public employees police and fire fund, deleted text begin anddeleted text end the local
government correctional service retirement plannew text begin , and the local government probation and
telecommunicator retirement plan,new text end and any other disability determination subject to approval
by the board, except as otherwise specified in section 353.032, 353.33, 353.656, or 353E.05.
These requirements and the requirements of section 353.03, subdivision 3, are in addition
to the specific requirements of each plan and govern in the event there is any conflict between
these sections and the procedures specific to any of those plans under section 353.33,
353.656, deleted text begin ordeleted text end 353E.06new text begin , or 353H.06new text end .
(b) Notwithstanding any law to the contrary, an employee, as defined in section 353.032,
subdivision 1, clause (2), who applies for a duty disability benefit based on a psychological
condition, as defined in section 353.032, subdivision 1, clause (7), is not eligible for duty
disability benefits under this chapter until the employee has satisfied the additional procedure,
including all completion of treatment requirements under section 353.032.
Sec. 7.
Minnesota Statutes 2024, section 353.031, subdivision 2, is amended to read:
Subd. 2.
Plan document policy statement.
Disability determinations for the public
employees general fund new text begin and the local government probation and telecommunicator retirement
plan new text end must be made subject to section 353.01, subdivision 19; and for the police and fire
plan and the local government correctional service retirement plan must be made consistent
with the legislative policy and intent set forth in section 353.63.
Sec. 8.
Minnesota Statutes 2024, section 353.031, subdivision 3, is amended to read:
Subd. 3.
Procedure to determine eligibility; generally.
(a) Every claim for a disability
benefit must be initiated in writing on an application form and in the manner prescribed by
the executive director and filed with the executive director. To be valid, an application for
disability benefits must be made within 18 months following termination of public service
as defined under section 353.01, subdivision 11a, and include the required application form
and the medical reports required by paragraph (c).
(b) All medical reports must support a finding that the disability arose before the employee
was placed on any paid or unpaid leave of absence or terminated public service, as defined
under section 353.01, subdivision 11a.
(c) An applicant for disability shall provide a detailed report signed by a licensed medical
doctor and at least one additional report signed by a medical doctor, psychiatrist, psychologist,
APRN, or chiropractor. The applicant must authorize the release of all medical and health
care evidence, including all medical records and relevant information from any source, to
support the application for initial, or the continuing payment of, disability benefits.
(d) All reports must contain an opinion regarding the applicant's prognosis, the duration
of the disability, and the expectations for improvement. Any report that does not contain
and support a finding that the disability will last for at least one year may not be relied upon
to support eligibility for benefits.
(e) Where the medical evidence supports the expectation that at some point in time the
applicant will no longer be disabled, any decision granting disability may provide for a
termination date upon which disability can be expected to no longer exist. In the event a
termination date is made part of the decision granting benefits, prior to the actual termination
of benefits, the applicant shall have the opportunity to show that the disabling condition for
which benefits were initially granted continues. In the event the benefits terminate in
accordance with the original decision, the applicant may petition for review under section
356.96 or may reapply for disability in accordance with these procedures and section 353.33,
353.656, or 353E.06, as applicable.
(f) Upon receipt of a valid application, the executive director must notify the employer.
No later than 30 days after receiving the notification, the employer must provide a report
to the executive director indicating that there is no available work that the applicant can
perform in the applicant's disabled condition and that all reasonable accommodations have
been considered. Upon request of the executive director, an employer shall provide evidence
of the steps the employer has taken to attempt to provide reasonable accommodations and
continued employment to the applicant. The employer shall also provide a certification of
the applicant's past public service; the dates of any paid sick leave, vacation, or any other
employer-paid salary continuation plan beyond the last working day; and whether or not
any sick or annual leave has been allowed.
(g) An applicant who is placed on leave of absence without compensation because of a
disability is not barred from receiving a disability benefit.
(h) An applicant for disability benefits may file a retirement annuity application under
section 353.29, subdivision 4, simultaneously with an application for disability benefits. If
the application for disability benefits is approved, the retirement annuity application is
canceled. If disability benefits are denied, the retirement annuity application must be
processed upon the request of the applicant. No member of the general employees retirement
plan, the police and fire plan, deleted text begin ordeleted text end the local government correctional service retirement plannew text begin ,
or the local government probation and telecommunicator retirement plannew text end may receive a
disability benefit and a retirement annuity simultaneously from the same plan.
Sec. 9.
Minnesota Statutes 2024, section 353.15, subdivision 1, is amended to read:
Subdivision 1.
Exemption.
The provisions of section 356.401 apply to the general
employees retirement plan, deleted text begin todeleted text end the public employees police and fire retirement plan, deleted text begin and todeleted text end
the local government correctional service retirement plannew text begin , and the local government probation
and telecommunicator retirement plannew text end .
Sec. 10.
Minnesota Statutes 2024, section 353.27, subdivision 4, is amended to read:
Subd. 4.
Employer reporting requirements; contributions; member status.
(a) A
representative authorized by the head of each department must deduct employee contributions
from the salary of each public employee who qualifies for membership in the general
employees retirement plan or the public employees police and fire retirement plan under
this chapter, the public employees defined contribution plan under chapter 353D, deleted text begin ordeleted text end the
local government correctional service retirement plan under chapter 353Enew text begin , or the local
government probation and telecommunicator retirement plan under chapter 353Hnew text end at the rate
under section 353.27, 353.65, 353D.03, deleted text begin ordeleted text end 353E.03,new text begin or 353H.04,new text end whichever is applicable,
that is in effect on the date the salary is paid. The employer representative must also remit
payment in a manner prescribed by the executive director for the aggregate amount of the
employee contributions and the required employer contributions to be received by the
association within 14 calendar days after each pay date. If the payment is less than the
amount required, the employer must pay the shortage amount to the association and collect
reimbursement of any employee contribution shortage paid on behalf of a member through
subsequent payroll withholdings from the wages of the employee. Payment of shortages in
employee contributions and associated employer contributions, if applicable, must include
interest at the rate specified in section 353.28, subdivision 5, if not received within 30 days
following the date the amount was initially due under this section.
(b) The head of each department or the person's designee shall submit for each pay period
to the association a salary deduction report in the format prescribed by the executive director.
The report must be received by the association within 14 calendar days after each pay date
or the employer may be assessed a fine of $5 per calendar day until the association receives
the required data. Data required as part of salary deduction reporting must include, but are
not limited to:
(1) the legal names and Social Security numbers of employees who are members;
(2) the amount of each employee's salary deduction;
(3) the amount of salary defined in section 353.01, subdivision 10, earned in the pay
period from which each deduction was made, including a breakdown of the portion of the
salary that represents overtime pay that the employee was paid for additional hours worked
beyond the regularly scheduled hours, pay for unused compensatory time, and the salary
amount earned by a reemployed annuitant under section 353.37, subdivision 1, or 353.371,
subdivision 1, or by a disabled member under section 353.33, subdivision 7 or 7a;
(4) the beginning and ending dates of the payroll period covered and the date of actual
payment; and
(5) adjustments or corrections covering past pay periods as authorized by the executive
director.
(c) Employers must furnish the data required for enrollment for each new or reinstated
employee who qualifies for membership in the general employees retirement plan, the public
employees police and fire retirement plan, the public employees defined contribution plan,
deleted text begin ordeleted text end the local government correctional service retirement plannew text begin , or the local government
probation and telecommunicator retirement plannew text end in the format prescribed by the executive
director. The required enrollment data on new members must be submitted to the association
prior to or concurrent with the submission of the initial employee salary deduction. Also,
the employer shall report to the association all member employment status changes, such
as leaves of absence, terminations, and death, and shall report the effective dates of those
changes, on an ongoing basis for the payroll cycle in which they occur. If an employer fails
to comply with the reporting requirements under this paragraph, the executive director may
assess a fine of $25 for each failure if the association staff has notified the employer of the
noncompliance and attempted to obtain the missing data or form from the employer for a
period of more than three months.
(d) The employer shall furnish data, forms, and reports as may be required by the
executive director for proper administration of the retirement system. Before implementing
new or different computerized reporting requirements, the executive director shall give
appropriate advance notice to governmental subdivisions to allow time for system
modifications.
(e) Notwithstanding paragraph (a), the executive director may provide for less frequent
reporting and payments for small employers.
(f) The executive director may establish reporting procedures and methods as required
to review compliance by employers with the salary and contribution reporting requirements
in this chapter. A review of the payroll records of a participating employer may be conducted
by the association on a periodic basis or as a result of concerns known to exist within a
governmental subdivision. An employer under review must extract requested data and
provide records to the association after receiving reasonable advanced notice. Failure to
provide requested information or materials will result in the employer being liable to the
association for any expenses associated with a field audit, which may include staff salaries,
administrative expenses, and travel expenses.
Sec. 11.
Minnesota Statutes 2024, section 353.27, subdivision 7b, is amended to read:
Subd. 7b.
Recovery of overpayments.
(a) In the event the executive director determines
that an overpaid annuity or benefit from the general employees retirement plan of the Public
Employees Retirement Association, the public employees police and fire retirement plan,
deleted text begin ordeleted text end the local government correctional employees retirement plannew text begin , or the local government
probation and telecommunicator retirement plannew text end is the result of invalid salary included in
the average salary used to calculate the payment amount must be recovered, the association
must determine the amount of the employee deductions taken in error on the invalid salary,
with interest determined in the manner provided for a former member under subdivision 7,
paragraph (e), clause (2), item (i), and must subtract that amount from the total annuity or
benefit overpayment, and the remaining balance of the overpaid annuity or benefit, if any,
must be recovered.
(b) If the invalid employee deductions plus interest exceed the amount of the overpaid
benefits, the balance must be refunded to the person to whom the benefit or annuity is being
paid.
(c) Any invalid employer contributions reported on the invalid salary must be credited
to the employer as provided in subdivision 7, paragraph (e).
(d) If a member or former member, who is receiving a retirement annuity or disability
benefit for which an overpayment is being recovered, dies before recovery of the overpayment
is completed and a joint and survivor optional annuity is payable, the remaining balance of
the overpaid annuity or benefit must continue to be recovered from the payment to the
optional annuity beneficiary.
(e) If the association finds that a refund has been overpaid to a former member,
beneficiary or other person, the amount of the overpayment must be recovered for the benefit
of the respective retirement fund or account.
(f) The board of trustees shall adopt policies directing the period of time and manner
for the collection of any overpaid retirement or optional annuity, and survivor or disability
benefit, or a refund that the executive director determines must be recovered as provided
under this section.
Sec. 12.
Minnesota Statutes 2024, section 353.27, subdivision 11, is amended to read:
Subd. 11.
Employers; required to furnish requested information.
(a) All governmental
subdivisions shall furnish promptly such other information relative to the employment status
of all employees or former employees, including, but not limited to, payroll abstracts
pertaining to all past and present employees, as may be requested by the executive director,
including schedules of salaries applicable to various categories of employment.
(b) In the event payroll abstract records have been lost or destroyed, for whatever reason
or in whatever manner, so that such schedules of salaries cannot be furnished therefrom,
the employing governmental subdivision, in lieu thereof, shall furnish to the association an
estimate of the earnings of any employee or former employee for any period as may be
requested by the executive director. If the association is provided a schedule of estimated
earnings, the executive director is authorized to use the same as a basis for making whatever
computations might be necessary for determining obligations of the employee and employer
to the general employees retirement plan, the public employees police and fire retirement
plan, deleted text begin ordeleted text end the local government correctional employees retirement plannew text begin , or the local government
probation and telecommunicator retirement plannew text end . If estimates are not furnished by the
employer at the request of the executive director, the executive director may estimate the
obligations of the employee and employer to the general employees retirement fund, the
public employees police and fire retirement plan, deleted text begin ordeleted text end the local government correctional
employees retirement plannew text begin , or the local government probation and telecommunicator
retirement plannew text end based upon those records that are in its possession.
Sec. 13.
Minnesota Statutes 2024, section 353.27, subdivision 12, is amended to read:
Subd. 12.
Omitted salary deductions; obligations.
(a) In the case of omission of
required deductions for the general employees retirement plan, the public employees police
and fire retirement plan, deleted text begin ordeleted text end the local government correctional employees retirement plannew text begin ,
or the local government probation and telecommunicator retirement plannew text end from the salary
of an employee, the department head or designee shall immediately, upon discovery, report
the employee for membership and deduct the employee deductions under subdivision 4
during the current pay period or during the pay period immediately following the discovery
of the omission. Payment for the omitted obligations may only be made in accordance with
reporting procedures and methods established by the executive director.
(b) When the entire omission period of an employee does not exceed 60 days, the
governmental subdivision may report and submit payment of the omitted employee
deductions and the omitted employer contributions through the reporting processes under
subdivision 4.
(c) When the omission period of an employee exceeds 60 days, the governmental
subdivision shall furnish to the association sufficient data and documentation upon which
the obligation for omitted employee and employer contributions can be calculated. The
omitted employee deductions must be deducted from the employee's subsequent salary
payment or payments and remitted to the association for deposit in the applicable retirement
fund. The employee shall pay omitted employee deductions due for the 60 days prior to the
end of the last pay period in the omission period during which salary was earned. The
employer shall pay any remaining omitted employee deductions and any omitted employer
contributions, plus interest at the applicable rate or rates specified in section 356.59,
subdivision 3, compounded annually, from the date or dates each omitted employee
contribution was first payable.
(d) An employer shall not hold an employee liable for omitted employee deductions
beyond the pay period dates under paragraph (c), nor attempt to recover from the employee
those employee deductions paid by the employer on behalf of the employee. Omitted
deductions due under paragraph (c) which are not paid by the employee constitute a liability
of the employer that failed to deduct the omitted deductions from the employee's salary.
The employer shall make payment with interest at the applicable rate or rates specified in
section 356.59, subdivision 3, compounded annually. Omitted employee deductions are no
longer due if an employee terminates public service before making payment of omitted
employee deductions to the association, but the employer remains liable to pay omitted
employer contributions plus interest at the applicable rate or rates specified in section 356.59,
subdivision 3, compounded annually, from the date the contributions were first payable.
(e) The association may not commence action for the recovery of omitted employee
deductions and employer contributions after the expiration of three calendar years after the
calendar year in which the contributions and deductions were omitted. Except as provided
under paragraph (b), no payment may be made or accepted unless the association has already
commenced action for recovery of omitted deductions. An action for recovery commences
on the date of the mailing of any written correspondence from the association requesting
information from the governmental subdivision upon which to determine whether or not
omitted deductions occurred.
Sec. 14.
Minnesota Statutes 2024, section 353.27, subdivision 12a, is amended to read:
Subd. 12a.
Terminated employees: omitted deductions.
A terminated employee who
was a member of the general employees retirement plan of the Public Employees Retirement
Association, the public employees police and fire retirement plan, deleted text begin ordeleted text end the local government
correctional employees retirement plannew text begin , or the local government probation and
telecommunicator retirement plannew text end and who has a period of employment in which previously
omitted employer contributions were made under subdivision 12 but for whom no, or only
partial, omitted employee contributions have been made, or a member who had prior coverage
in the association for which previously omitted employer contributions were made under
subdivision 12 but who terminated service before required omitted employee deductions
could be withheld from salary, may pay the omitted employee deductions for the period on
which omitted employer contributions were previously paid plus interest at the applicable
rate or rates specified in section 356.59, subdivision 3, compounded annually. A terminated
employee may pay the omitted employee deductions plus interest within six months of an
initial notification from the association of eligibility to pay those omitted deductions. If a
terminated employee is reemployed in a position covered under a public pension fund under
section 356.30, subdivision 3, and elects to pay omitted employee deductions, payment
must be made no later than six months after a subsequent termination of public service.
Sec. 15.
Minnesota Statutes 2024, section 353.27, subdivision 12b, is amended to read:
Subd. 12b.
Terminated employees: immediate eligibility.
If deductions were omitted
from salary adjustments or final salary of a terminated employee who was a member of the
general employees retirement plan, the public employees police and fire retirement plan,
deleted text begin ordeleted text end the local government correctional employees retirement plannew text begin , or the local government
probation and telecommunicator retirement plannew text end and who is immediately eligible to draw
a monthly benefit, the employer shall pay the omitted employer and employer additional
contributions plus interest on both the employer and employee amounts due at the applicable
rate or rates specified in section 356.59, subdivision 3, compounded annually. The employee
shall pay the employee deductions within six months of an initial notification from the
association of eligibility to pay omitted deductions or the employee forfeits the right to
make the payment.
Sec. 16.
Minnesota Statutes 2024, section 353.27, subdivision 13, is amended to read:
Subd. 13.
Certain warrants canceled.
A warrant payable from the general employees
retirement fund, the public employees police and fire retirement fund, deleted text begin ordeleted text end the local government
correctional retirement fundnew text begin , or the local government probation and telecommunicator
retirement fundnew text end remaining unpaid for a period of six months must be canceled into the
applicable retirement fund and not canceled into the state's general fund.
Sec. 17.
Minnesota Statutes 2024, section 353.27, subdivision 14, is amended to read:
Subd. 14.
Periods before initial coverage date.
(a) If an entity is determined to be a
governmental subdivision due to receipt of a written notice of eligibility from the association
with respect to the general employees retirement plan, the public employees police and fire
retirement plan, deleted text begin ordeleted text end the local government correctional retirement plannew text begin , or the local government
probation and telecommunicator retirement plannew text end , that employer and its employees are subject
to the requirements of subdivision 12, effective retroactively to the date that the executive
director of the association determines that the entity first met the definition of a governmental
subdivision, if that date predates the notice of eligibility.
(b) If the retroactive time period under paragraph (a) exceeds three years, an employee
is authorized to purchase service credit in the applicable Public Employees Retirement
Association plan for the portion of the period in excess of three years, by making payment
under section 356.551. Notwithstanding any provision of section 356.551, subdivision 2,
to the contrary, regarding time limits on purchases, payment of a service credit purchase
amount may be made anytime before the termination of public service.
(c) This subdivision does not apply if the applicable employment under paragraph (a)
included coverage by any public or private defined benefit or defined contribution retirement
plan, other than a firefighters relief association. If this paragraph applies, an individual is
prohibited from purchasing service credit from a Public Employees Retirement Association
plan for any period or periods specified in paragraph (a).
Sec. 18.
Minnesota Statutes 2024, section 353.30, subdivision 3, is amended to read:
Subd. 3.
Optional retirement annuity forms.
(a) The board of trustees shall establish
optional annuities which shall take the form of a joint and survivor annuity. Except as
provided in subdivision 3a, the optional annuity forms shall be actuarially equivalent to the
forms provided in section 353.29 and subdivisions 1, 1a, 1b, 1c, and 5new text begin or section 353H.05,
subdivisions 1 and 3new text end . In establishing those optional forms, the board shall obtain the written
recommendation of the actuary retained under section 356.214. The recommendations shall
be a part of the permanent records of the board. A member or former member may select
an optional form of annuity, subject to the provisions of section 356.46, in lieu of accepting
any other form of annuity which might otherwise be available.
(b) For purposes of computing a joint and survivor annuity, the investment return
assumption specified in section 356.461 must be used rather than the investment return
specified in section 356.215, subdivision 8.
Sec. 19.
Minnesota Statutes 2024, section 353.33, subdivision 3, is amended to read:
Subd. 3.
Computation of benefits.
(a) This disability benefit is an amount equal to the
normal annuity payable to a member who has reached normal retirement age with the same
number of years of allowable service and the same average salary, as provided in deleted text begin sectiondeleted text end new text begin
sectionsnew text end 353.01, subdivision 17a, and deleted text begin sectiondeleted text end 353.29, subdivision 3new text begin , or 353H.05, subdivision
1, for members of the local government probation and telecommunicator retirement plannew text end .
(b) A basic member shall receive a supplementary monthly benefit of $25 to age 65 or
the five-year anniversary of the effective date of the disability benefit, whichever is later.
(c) If the disability benefits under this subdivision exceed the average salary as defined
in section 353.01, subdivision 17a, the disability benefits must be reduced to an amount
equal to the average salary.
Sec. 20.
Minnesota Statutes 2024, section 353.33, subdivision 7a, is amended to read:
Subd. 7a.
Trial work period.
(a) This subdivision applies only to the Public Employees
Retirement Association general employees retirement plannew text begin and local government probation
and telecommunicator retirement plannew text end .
(b) If, following a work or non-work-related injury or illness, a member receiving
disability benefits attempts to return to work for the member's previous public employer or
attempts to return to a similar position with another public employer, on a full-time or less
than full-time basis, the association must continue paying the disability benefit for a period
not to exceed six months. The disability benefit must continue in an amount that, when
added to the subsequent employment earnings, does not exceed the base monthly salary the
member had been receiving at the date of disability or the base monthly salary rate currently
paid for similar positions, whichever is higher.
(c) No deductions for the general employees retirement plan may be taken from the
salary of a disabled person who is attempting to return to work under this provision unless
the member waives further disability benefits.
(d) A member only may return to employment and continue disability benefit payments
once while receiving disability benefits from the general employees retirement plan.
Sec. 21.
Minnesota Statutes 2024, section 353.33, subdivision 11, is amended to read:
Subd. 11.
Coordinated member disabilitant transfer to retirement status.
The
disability benefits paid to a coordinated member must terminate when the person reaches
normal retirement age. If the coordinated member is still totally and permanently disabled
upon attaining normal retirement age, the coordinated member is deemed to be on retirement
status. If an optional annuity is elected under subdivision 3a, the coordinated member shall
receive an annuity under the terms of the optional annuity previously elected, or, if an
optional annuity is not elected under subdivision 3a, the coordinated member may elect to
receive a normal retirement annuity under section 353.29new text begin or 353H.05new text end or an annuity equal
to the disability benefit paid before the coordinated member reaches normal retirement age,
whichever amount is greater, or elect to receive an optional annuity under section 353.30,
subdivision 3. The annuity of a disabled coordinated member who attains normal retirement
age must be computed under the law in effect upon attainment of normal retirement age.
Election of an optional annuity must be made before the coordinated member attains normal
retirement age. If an optional annuity is elected, the election is effective on the date on
which the person attains normal retirement age and the optional annuity begins to accrue
on the first day of the month next following the month in which the person attains that age.
Sec. 22.
Minnesota Statutes 2024, section 353.34, subdivision 1, is amended to read:
Subdivision 1.
Refund or deferred annuity.
(a) A former member is entitled to either
a refund of accumulated employee deductions under subdivision 2, or to a deferred annuity
under subdivision 3. Application for a refund may not be made before the date of termination
of public service. A refund must be paid within 120 days following receipt of the application
unless the applicant has again become a public employee required to be covered by the
association.
(b) If an individual was placed on layoff under section 353.01, subdivision 12 or 12c, a
refund is not payable before termination of service under section 353.01, subdivision 11a.
(c) An individual who terminates public service covered by the Public Employees
Retirement Association general employees retirement plan, except members of the former
Minneapolis Employees Retirement Fund under section 353.01, subdivision 2b, paragraph
(d), the Public Employees Retirement Association police and fire retirement plan, deleted text begin ordeleted text end the
public employees local government correctional service retirement plannew text begin , or the local
government probation and telecommunicator retirement plannew text end , and who is employed by a
different employer and who becomes an active member covered by one of the other two
plans, may receive a refund of employee contributions plus annual compound interest from
the plan from which the member terminated service at the applicable rate specified in
subdivision 2.
(d) Refunds payable to members of the former Minneapolis Employees Retirement Fund
under section 353.01, subdivision 2a, paragraph (d), are governed by Minnesota Statutes
2008, chapter 422A.
Sec. 23.
Minnesota Statutes 2024, section 353.34, subdivision 3, is amended to read:
Subd. 3.
Deferred annuity; eligibility; computation.
(a) A member who is partially
or 100 percent vested under section 353.01, subdivision 47, new text begin or 353H.01, subdivision 12,new text end when
termination of public service or termination of membership occurs has the option of leaving
the member's accumulated deductions in the fund and being entitled to a deferred retirement
annuity commencing at normal retirement age or to a deferred early retirement annuity
under section 353.30, subdivision 1a, 1b, 1c, or 5new text begin , or 353H.05, subdivision 3new text end .
(b) The deferred annuity must be computed under section 353.29, subdivision 3,new text begin or
353H.05, subdivision 1,new text end on the basis of the law in effect on the date of termination of public
service or termination of membership, whichever is later, and, if the later of termination of
public service or termination of membership is on or before December 31, 2011, the deferred
annuity must be augmented as provided in paragraphs (c) to (e).
(c) The deferred annuity of any former member must be augmented from the first day
of the month following the termination of active service, or July 1, 1971, whichever is later,
to the effective date of retirement or, if earlier, December 31, 2018.
(d) For a person who became a public employee before July 1, 2006, and who has a
termination of public service before January 1, 2012, the deferred annuity must be augmented
at the following rate or rates, compounded annually:
(1) five percent until January 1, 1981;
(2) three percent from January 1, 1981, until January 1 of the year following the year in
which the former member attains age 55 or December 31, 2011, whichever is earlier;
(3) five percent from January 1 of the year following the year in which the former member
attains age 55, or December 31, 2011, whichever is earlier;
(4) one percent from January 1, 2012, until December 31, 2018; and
(5) after December 31, 2018, the deferred annuity must not be augmented.
(e) For a person who became a public employee after June 30, 2006, and who has a
termination of public service before January 1, 2012, the deferred annuity must be augmented
at the following rate or rates, compounded annually:
(1) 2.5 percent until December 31, 2011;
(2) one percent from January 1, 2012, until December 31, 2018; and
(3) after December 31, 2018, the deferred annuity must not be augmented.
(f) For a person who has a termination of public service after December 31, 2011, the
deferred annuity must not be augmented.
(g) The retirement annuity or disability benefit of, or the survivor benefit payable on
behalf of, a former member who terminated service before July 1, 1997, or the survivor
benefit payable on behalf of a basic or police and fire member who was receiving disability
benefits before July 1, 1997, which is first payable after June 30, 1997, must be increased
on an actuarial equivalent basis to reflect the change in the investment return actuarial
assumption under section 356.215, subdivision 8, from five percent to six percent under a
calculation procedure and tables adopted by the board and approved by the actuary retained
under section 356.214.
(h) A former member qualified to apply for a deferred retirement annuity may revoke
this option at any time before the commencement of deferred annuity payments by making
application for a refund. The person is entitled to a refund of accumulated member
contributions within 30 days following date of receipt of the application by the executive
director.
Sec. 24.
Minnesota Statutes 2024, section 353.37, subdivision 5, is amended to read:
Subd. 5.
Effect on annuity.
Except as provided under this section, public service
performed by an annuitant described in subdivision 1, paragraph (a), subsequent to retirement
from the general employees retirement plan, the public employees police and fire retirement
plan, deleted text begin ordeleted text end the local government correctional employees retirement plannew text begin , or the local government
probation and telecommunicator retirement plannew text end does not increase or decrease the amount
of an annuity. The annuitant shall not make any further contributions to a defined benefit
plan administered by the association by reason of this subsequent public service.
Sec. 25.
Minnesota Statutes 2024, section 353.46, subdivision 2, is amended to read:
Subd. 2.
Rights of deferred annuitant.
(a) The entitlement of a deferred annuitant or
other former member of the general employees retirement plan of the Public Employees
Retirement Association, the public employees police and fire retirement plan, deleted text begin ordeleted text end the local
government correctional employees retirement plannew text begin , or the local government probation and
telecommunicator retirement plannew text end to receive an annuity under the law in effect at the time
the person terminated public service is preserved.
(b) The entitlement of a deferred annuitant or former member of the Minneapolis
Employees Retirement Fund, upon merger with the general employees retirement plan of
the Public Employees Retirement Association, continues under the provisions of Minnesota
Statutes 2008, section 422A.16.
Sec. 26.
new text begin
[353H.001] APPLICATION OF CHAPTER 353.
new text end
new text begin
The general provisions of chapter 353 apply to the local government probation and
telecommunicator retirement plan, except where otherwise specifically provided in this
chapter.
new text end
Sec. 27.
new text begin
[353H.002] POLICY.
new text end
new text begin
It is the policy of the legislature that special consideration should be given to the pension
benefits for employees of governmental subdivisions who devote their time and skills to
assisting the community and the courts as probation officers or serving the public and public
safety partners as telecommunicators. Because this work can be hazardous or high stress,
special provisions are made by this chapter for earlier retirement and larger retirement
annuities than are provided to members of the general employees retirement plan under
chapter 353. The additional costs of these benefits are borne initially by the employees.
new text end
Sec. 28.
new text begin
[353H.01] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Terms. new text end
new text begin
For purposes of this chapter, unless the language or context
indicates that a different meaning is intended, the following terms have the meanings given.
The definitions in section 353.01 apply to this chapter unless the term is defined in this
section.
new text end
new text begin Subd. 2. new text end
new text begin Executive director. new text end
new text begin
"Executive director" means the executive director of the
Public Employees Retirement Association appointed under section 353.03, subdivision 3a.
new text end
new text begin Subd. 3. new text end
new text begin Fund. new text end
new text begin
"Fund" means the local government probation and telecommunicator
retirement fund.
new text end
new text begin Subd. 4. new text end
new text begin General plan. new text end
new text begin
"General plan" means the general employees retirement plan of
the Public Employees Retirement Association.
new text end
new text begin Subd. 5. new text end
new text begin Member. new text end
new text begin
"Member" means an individual identified as a member under section
353H.03 for whom retirement coverage is provided by the plan.
new text end
new text begin Subd. 6. new text end
new text begin Normal retirement age. new text end
new text begin
"Normal retirement age" means age 60.
new text end
new text begin Subd. 7. new text end
new text begin Offset amount. new text end
new text begin
"Offset amount" means an amount available to offset the cost
to purchase credit for past service upon the election by a member under section 353H.08,
if state funding becomes available.
new text end
new text begin Subd. 8. new text end
new text begin Past service. new text end
new text begin
"Past service" means allowable service credited to a member
before January 1, 2027, and covered by the general plan that would have been service
covered by the local government probation and telecommunicator retirement plan had that
plan been in effect before January 1, 2027.
new text end
new text begin Subd. 9. new text end
new text begin Plan. new text end
new text begin
"Plan" means the local government probation and telecommunicator
retirement plan of the Public Employees Retirement Association.
new text end
new text begin Subd. 10. new text end
new text begin Probation officer. new text end
new text begin
"Probation officer" means an individual who the employer
certifies, in the form prescribed by the executive director, is a public employee as defined
in section 353.01 and:
new text end
new text begin
(1) is employed as a probation officer by a county, community corrections agency, or
state probation agency and provides community supervision services with direct offender
contact; or
new text end
new text begin
(2) directly supervises one or more individuals described in clause (1).
new text end
new text begin Subd. 11. new text end
new text begin Public safety telecommunicator. new text end
new text begin
"Public safety telecommunicator" means
an individual who the employer certifies, in the form prescribed by the executive director,
is a public employee as defined in section 353.01, employed by a primary or secondary
public safety answering point and:
new text end
new text begin
(1) serves as a first responder by receiving, assessing, or processing requests for assistance
from the public and other public safety partners and coordinates the appropriate public
safety response;
new text end
new text begin
(2) as part of the individual's employment position, is assigned less than 50 percent of
the time to perform employment duties other than the duties described in clause (1); or
new text end
new text begin
(3) directly supervises one or more individuals described in clause (1) or (2).
new text end
new text begin Subd. 12. new text end
new text begin Vesting or vested. new text end
new text begin
"Vesting" or "vested" means obtaining or having obtained
a nonforfeitable entitlement to an annuity or benefit under the plan by having earned credit
for no less than three years of allowable service covered by the plan or the general plan.
new text end
Sec. 29.
new text begin
[353H.02] ADMINISTRATION AND FUND DISBURSEMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Plan administration; fund. new text end
new text begin
(a) The plan is established as a separate plan
to be administered by the board of trustees of the association and the executive director.
new text end
new text begin
(b) The board of trustees and the executive director must undertake activities in a manner
consistent with chapter 356A.
new text end
new text begin
(c) The association must maintain a special fund to be known as the local government
probation and telecommunicator retirement fund.
new text end
new text begin Subd. 2. new text end
new text begin Investment. new text end
new text begin
Assets of the fund must be deposited in the Minnesota combined
investment fund as provided under section 11A.14, if applicable, or otherwise invested
under section 11A.23.
new text end
new text begin Subd. 3. new text end
new text begin Fund disbursement restricted. new text end
new text begin
(a) The fund may be disbursed only for the
purposes provided for under this chapter.
new text end
new text begin
(b) The proportional share of the necessary and reasonable administrative expenses of
the association and any benefits provided under this chapter must be paid from the fund.
Retirement annuities, disability benefits, survivor benefits, and any refunds of accumulated
deductions may only be paid from the fund after those needs have been certified by the
executive director.
new text end
new text begin
(c) The amounts necessary to make the payments from the fund are annually appropriated
from the fund for those purposes.
new text end
Sec. 30.
new text begin
[353H.03] MEMBERSHIP.
new text end
new text begin
(a) The members of the plan are probation officers and public safety telecommunicators.
new text end
new text begin
(b) A probation officer or public safety telecommunicator who first became a public
employee or a member of a pension fund listed in section 356.30, subdivision 3, before July
1, 1989, is not eligible to participate as a member of the plan.
new text end
Sec. 31.
new text begin
[353H.04] CONTRIBUTIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Member contributions. new text end
new text begin
(a) A member must make employee contributions
equal to 8.82 percent of the member's salary.
new text end
new text begin
(b) Employee contributions must be made by deduction from the member's salary, as
defined in section 353.01, subdivision 10, in the manner provided in section 353.27,
subdivision 4. If any portion of a member's salary is paid from a source other than public
funds, the member's employee contribution must be based on the total salary received by
the member from all sources.
new text end
new text begin Subd. 2. new text end
new text begin Employer contributions. new text end
new text begin
(a) The employer of a member must make employer
contributions equal to 7.5 percent of the member's salary.
new text end
new text begin
(b) Employer contributions must be made from money available to the employing
subdivision by the means and in the manner provided under section 353.28.
new text end
new text begin Subd. 3. new text end
new text begin Deposit of contributions. new text end
new text begin
Employee contributions under subdivision 1, employer
contributions under subdivision 2, and other amounts authorized by law, including investment
return on invested fund assets, must be deposited in the fund.
new text end
new text begin Subd. 4. new text end
new text begin Collection, correction, and reporting of contributions. new text end
new text begin
The requirements
and procedures under sections 353.27 and 353.28 apply to employee and employer
contributions under this section.
new text end
Sec. 32.
new text begin
[353H.05] RETIREMENT ANNUITY.
new text end
new text begin Subdivision 1. new text end
new text begin Normal retirement annuity. new text end
new text begin
After termination of public service, a
member who has attained at least normal retirement age and is vested is entitled, upon
application, to a normal retirement annuity. The normal retirement annuity is equal to the
member's average salary multiplied by 1.9 percent for each year of allowable service.
new text end
new text begin Subd. 2. new text end
new text begin Optional annuity; bounce-back annuity. new text end
new text begin
(a) Instead of a normal retirement
annuity under subdivision 1, a member may elect to receive an optional annuity under
section 353.30, subdivision 3.
new text end
new text begin
(b) A bounce-back annuity under section 353.30, subdivisions 3a and 3c, applies to an
annuity under this section or a disability benefit under section 353H.06.
new text end
new text begin Subd. 3. new text end
new text begin Early retirement annuity. new text end
new text begin
After termination of public service, a member who
is vested and at least 55 years of age, but not yet normal retirement age, is entitled, upon
application, to an early retirement annuity that is actuarially equivalent to the normal
retirement annuity.
new text end
new text begin Subd. 4. new text end
new text begin Allowable service in other retirement plans. new text end
new text begin
If a member has earned allowable
service in the general plan, the public employees police and fire retirement plan, or the
public employees local government correctional service retirement plan before or after
participation under this chapter, the retirement annuity under the plan or plans must be
computed in accordance with the formula specified in sections 353.29 and 353.30, 353.651,
or 353E.04, whichever applies.
new text end
new text begin Subd. 5. new text end
new text begin Application; annuity starting date; annuity duration. new text end
new text begin
Upon application
under section 353.29, subdivision 4, the retirement annuity under this section begins as
provided in section 353.29, subdivision 7. The retirement annuity is payable for the life of
the recipient or in accordance with the terms of any optional annuity form selected by the
member.
new text end
new text begin Subd. 6. new text end
new text begin Payment of annuities and benefits earned under the general plan. new text end
new text begin
The
executive director must pay a retirement annuity or benefit as provided under chapter 353
to a member of the plan from the assets of the fund if the member was transferred from the
general plan to the plan on January 1, 2027, and had allowable service under the general
plan.
new text end
new text begin Subd. 7. new text end
new text begin Postretirement adjustment eligibility. new text end
new text begin
An annuity under this section is eligible
for postretirement adjustments under section 356.415.
new text end
Sec. 33.
new text begin
[353H.06] DISABILITY BENEFITS.
new text end
new text begin
A vested member who becomes totally and permanently disabled as defined in section
353.01, subdivision 19, before normal retirement age is entitled to a disability benefit on
the same basis as a member of the general plan under sections 353.031, 353.33, and 353.335.
new text end
Sec. 34.
new text begin
[353H.07] SURVIVOR BENEFITS.
new text end
new text begin
Upon the death of a member, survivor benefits are payable as provided under section
353.32 on the same basis as a member of the general plan.
new text end
Sec. 35.
new text begin
[353H.08] PURCHASE OF CREDIT FOR PAST SERVICE.
new text end
new text begin Subdivision 1. new text end
new text begin Purchase of credit for past service. new text end
new text begin
(a) A member is entitled to elect a
onetime purchase of credit for periods of past service to be added to the member's allowable
service covered by this section and used in calculating the member's retirement annuity.
The member must repay any refunds of employee contributions previously received from
the general plan before making a purchase of past service credit under this section.
new text end
new text begin
(b) A member may request an estimate of the cost of a service credit purchase under
this paragraph.
new text end
new text begin
(1) A member may file a request with the executive director for an estimate of the
purchase price for up to three different periods of past service by filing an application on a
form approved by the executive director.
new text end
new text begin
(2) The member must file the request for an estimate prior to filing an election to purchase
past service under paragraph (c).
new text end
new text begin
(3) The member must submit, with the estimate request, payment of the administrative
fee in the amount of $250 to cover the cost of preparing the estimates. If the member proceeds
with the purchase, the executive director must credit the administrative fee toward the
purchase price.
new text end
new text begin
(4) The executive director must estimate the purchase price using the assumptions and
applying any offset amount as directed under subdivision 2 for the periods of past service
requested by the member and provide the estimates to the member.
new text end
new text begin
(c) To purchase credit for past service, a member must file an application with the
executive director on a form approved by the executive director before the annuity starting
date of the member's retirement annuity or benefit. The application must:
new text end
new text begin
(1) include documentation of the member's eligibility to make the purchase, signed
written permission to allow the executive director to request and receive verification of
applicable facts and eligibility requirements from the member's employer, and any other
relevant information the executive director may require;
new text end
new text begin
(2) state the amount of credit for past service the member plans to purchase and be
accompanied by a certification from one or more employers that the past service fulfills the
requirements under section 353H.01, subdivision 8; and
new text end
new text begin
(3) if the member did not previously pay the administrative fee under paragraph (b),
include payment of the administrative fee of $250. If the member proceeds with the purchase,
the executive director must credit the administrative fee toward the purchase price.
new text end
new text begin
(d) The executive director must apply the assumptions and any offset amount under
subdivision 2 to calculate the purchase price and notify the member. If the member elects
to make the purchase of credit for past service, the member must arrange for the transfer of
pretax money from another retirement plan. Payment must be made in one lump sum before
the annuity starting date of the member's retirement annuity or benefit.
new text end
new text begin
(e) Upon receipt of payment, the executive director must grant the member service credit
for the period of past service for which credit was purchased.
new text end
new text begin Subd. 2. new text end
new text begin Determination of past service purchase price. new text end
new text begin
(a) The executive director
must calculate the purchase price for the period of past service elected by the member. The
purchase price is an amount equal to the actuarial present value, on the date of payment, of
the amount of the additional retirement annuity obtained by the additional service credit
being purchased minus any offset amount.
new text end
new text begin
(b) The executive director must calculate the purchase price by:
new text end
new text begin
(1) using the investment return assumption specified in section 356.215, subdivision 8,
and the mortality table in effect for the general plan;
new text end
new text begin
(2) assuming continuous future service in the plan until the plan's minimum requirements
for normal retirement, or retirement with an annuity unreduced for retirement at an early
age, are met with the additional service credit purchased;
new text end
new text begin
(3) assuming a full-time equivalent salary or actual salary, whichever is greater, and a
future salary history that includes annual salary increases at the applicable salary increase
rate for the plan; and
new text end
new text begin
(4) reducing the amount determined under clauses (1) to (3) by any offset amount.
new text end
Sec. 36.
Minnesota Statutes 2024, section 356.20, subdivision 2, is amended to read:
Subd. 2.
Covered public pension plans and funds.
This section applies to the following
public pension plans:
(1) the general state employees retirement plan of the Minnesota State Retirement System;
(2) the general employees retirement plan of the Public Employees Retirement
Association;
(3) the Teachers Retirement Association;
(4) the State Patrol retirement plan;
(5) the St. Paul Teachers Retirement Fund Association;
(6) the University of Minnesota faculty retirement plan;
(7) the University of Minnesota faculty supplemental retirement plan;
(8) the judges retirement fund;
(9) the Bloomington Fire Department Relief Association;
(10) a firefighters relief association governed by section 424A.091;
(11) the public employees police and fire plan of the Public Employees Retirement
Association;
(12) the correctional state employees retirement plan of the Minnesota State Retirement
System;
(13) the local government correctional service retirement plan of the Public Employees
Retirement Association; deleted text begin and
deleted text end
(14) the statewide volunteer firefighter plandeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(15) the local government probation and telecommunicator retirement plan of the Public
Employees Retirement Association.
new text end
Sec. 37.
Minnesota Statutes 2024, section 356.214, subdivision 1, is amended to read:
Subdivision 1.
Actuary retention.
(a) The governing board or managing or administrative
official of each public pension plan and retirement fund or plan enumerated in paragraph
(b) shall contract with an established actuarial consulting firm to conduct annual actuarial
valuations and related services. The principal from the actuarial consulting firm on the
contract must be an approved actuary under section 356.215, subdivision 1, paragraph (c).
(b) Actuarial services must include the preparation of actuarial valuations and related
actuarial work for the following retirement plans:
(1) the teachers retirement plan, Teachers Retirement Association;
(2) the general state employees retirement plan, Minnesota State Retirement System;
(3) the correctional employees retirement plan, Minnesota State Retirement System;
(4) the State Patrol retirement plan, Minnesota State Retirement System;
(5) the judges retirement plan, Minnesota State Retirement System;
(6) the general employees retirement plan, Public Employees Retirement Association;
(7) the public employees police and fire plan, Public Employees Retirement Association;
(8) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund Association;
(9) the legislators retirement plan, Minnesota State Retirement System; deleted text begin and
deleted text end
(10) the local government correctional service retirement plan, Public Employees
Retirement Associationdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(11) the local government probation and telecommunicator retirement plan, Public
Employees Retirement Association.
new text end
(c) The actuarial valuation for the legislators retirement plan must include a separate
calculation of total plan actuarial accrued liabilities due to constitutional officer coverage
under section 3A.17.
(d) The contracts must require completion of the annual actuarial valuation calculations
on a fiscal year basis, with the contents of the actuarial valuation calculations as specified
in section 356.215, and in conformity with the standards for actuarial work adopted by the
Legislative Commission on Pensions and Retirement.
The contracts must require completion of annual experience data collection and processing
and a quadrennial published experience study for the plans listed in paragraph (b), clauses
(1), (2), and (6), as provided for in the standards for actuarial work adopted by the
commission. The experience data collection, processing, and analysis must evaluate the
following:
(1) individual salary progression;
(2) the rate of return on investments based on the current asset value;
(3) payroll growth;
(4) mortality;
(5) retirement age;
(6) withdrawal; and
(7) disablement.
(e) The actuary shall annually prepare a report to the governing or managing board or
administrative official and the legislature, summarizing the results of the actuarial valuation
calculations. The actuary shall include with the report any recommendations concerning
the appropriateness of the support rates to achieve proper funding of the retirement plans
by the required funding dates. The actuary shall, as part of the quadrennial experience study,
include recommendations on the appropriateness of the actuarial valuation assumptions
required for evaluation in the study.
(f) If the actuarial gain and loss analysis in the actuarial valuation calculations indicates
a persistent pattern of sizable gains or losses, the governing or managing board or
administrative official shall direct the actuary to prepare a special experience study for a
plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), or (10), in the manner provided
for in the standards for actuarial work adopted by the commission.
Sec. 38.
Minnesota Statutes 2025 Supplement, section 356.215, subdivision 8, is amended
to read:
Subd. 8.
Actuarial assumptions.
(a) The actuarial valuation must use the applicable
following investment return assumption:
| plan |
investment return assumption |
|
| general state employees retirement plan |
7% |
|
| correctional state employees retirement plan |
7 |
|
| State Patrol retirement plan |
7 |
|
| legislators retirement plan, and for the constitutional officers calculation of total plan liabilities |
0 |
|
| judges retirement plan |
7 |
|
| general public employees retirement plan |
7 |
|
| public employees police and fire retirement plan |
7 |
|
| local government correctional service retirement plan |
7 |
|
|
new text begin
local government probation and telecommunicator retirement plan new text end |
new text begin
7 new text end |
|
| teachers retirement plan |
7 |
|
| St. Paul teachers retirement plan |
7 |
|
| Bloomington Fire Department Relief Association |
6 |
|
| local monthly benefit volunteer firefighter relief associations |
5 |
|
| monthly benefit retirement plans in the statewide volunteer firefighter retirement plan |
6 |
(b) The actuarial valuation for each of the covered retirement plans listed in section
356.415, subdivision 2, and the St. Paul Teachers Retirement Fund Association must take
into account the postretirement adjustment rate or rates applicable to the plan as specified
in section 354A.29, subdivision 7, or 356.415, whichever applies.
(c) The actuarial valuation must use the applicable salary increase and payroll growth
assumptions found in the appendix to the standards for actuarial work. The appendix must
be updated whenever new assumptions have been approved or deemed approved under
subdivision 18.
(d) The assumptions set forth in the appendix to the standards for actuarial work continue
to apply, unless a different salary assumption or a different payroll increase assumption:
(1) has been proposed by the governing board of the applicable retirement plan;
(2) is accompanied by the concurring recommendation of the actuary retained under
section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most
recent actuarial valuation report if section 356.214 does not apply; and
(3) has been approved or deemed approved under subdivision 18.
Sec. 39.
Minnesota Statutes 2024, section 356.302, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) The terms used in this section are defined in this
subdivision.
(b) "Average salary" means the highest average of covered salary for the appropriate
period of credited service that is required for the calculation of a disability benefit by the
covered retirement plan and that is drawn from any period of credited service and successive
years of covered salary in a covered retirement plan.
(c) "Covered retirement plan" or "plan" means a retirement plan listed in subdivision 7.
(d) "Duty-related" means a disabling illness or injury that occurred while the person was
actively engaged in employment duties or that arose out of the person's active employment
duties.
(e) "General employee retirement plan" means a covered retirement plan listed in
subdivision 7, clauses (1) to deleted text begin (6) and (11)deleted text end new text begin (5), (10), and (11)new text end .
(f) "Occupationally disabled" means the condition of having a medically determinable
physical or mental impairment that makes a person unable to satisfactorily perform the
minimum requirements of the person's employment position or a substantially similar
employment position.
(g) "Public safety employee retirement plan" means a covered retirement plan listed in
subdivision 7, clauses deleted text begin (7)deleted text end new text begin (6)new text end to deleted text begin (10)deleted text end new text begin (9)new text end .
(h) "Totally and permanently disabled" means the condition of having a medically
determinable physical or mental impairment that makes a person unable to engage in any
substantial gainful activity and that is expected to continue or has continued for a period of
at least one year or that is expected to result directly in the person's death.
Sec. 40.
Minnesota Statutes 2024, section 356.302, subdivision 7, is amended to read:
Subd. 7.
Covered retirement plans.
This section applies to the following retirement
plans:
(1) the general state employees retirement plan of the Minnesota State Retirement System,
established by chapter 352;
(2) the unclassified state employees retirement program of the Minnesota State Retirement
System, established by chapter 352D;
(3) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353;
(4) the Teachers Retirement Association, established by chapter 354;
(5) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
(6) the state correctional employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;
(7) the State Patrol retirement plan, established by chapter 352B;
(8) the public employees police and fire plan of the Public Employees Retirement
Association, established by chapter 353;
(9) the local government correctional service retirement plan of the Public Employees
Retirement Association, established by chapter 353E; deleted text begin and
deleted text end
(10) the judges retirement plan, established by chapter 490deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(11) the local government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established by chapter 353H.
new text end
Sec. 41.
Minnesota Statutes 2024, section 356.303, subdivision 4, is amended to read:
Subd. 4.
Covered retirement plans.
This section applies to the following retirement
plans:
(1) the legislators retirement plan, established by chapter 3A;
(2) the general state employees retirement plan of the Minnesota State Retirement System,
established by chapter 352;
(3) the correctional state employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;
(4) the State Patrol retirement plan, established by chapter 352B;
(5) the elective state officers retirement plan, established by chapter 352C;
(6) the unclassified state employees retirement program, established by chapter 352D;
(7) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353;
(8) the public employees police and fire plan of the Public Employees Retirement
Association, established by chapter 353;
(9) the local government correctional service retirement plan of the Public Employees
Retirement Association, established by chapter 353E;
(10) the Teachers Retirement Association, established by chapter 354;
(11) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
deleted text begin and
deleted text end
(12) the judges retirement fund, established by chapter 490deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(13) the local government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established by chapter 353H.
new text end
Sec. 42.
Minnesota Statutes 2024, section 356.315, subdivision 9, is amended to read:
Subd. 9.
Future benefit accrual rate increases.
After January 2, 1998, benefit accrual
rate increases under section 352.115, subdivision 3; 352.87, subdivision 3; 352.93,
subdivision 3; 352.95, subdivision 1; 352B.08, subdivision 2; 352B.10, subdivision 1;
353.29, subdivision 3; 353.651, subdivision 3; 353.656, subdivision 1, 1a, or 3a; 353E.04,
subdivision 3; 353E.06, subdivision 1; new text begin 353H.05, subdivision 1; new text end 354.44, subdivision 6;
354A.31, subdivision 4 or 4a; 356.30, subdivision 1; 490.121, subdivision 22; or 490.124,
subdivision 1, must apply only to allowable service or formula service rendered after the
effective date of the benefit accrual rate increase.
Sec. 43.
Minnesota Statutes 2024, section 356.32, subdivision 2, is amended to read:
Subd. 2.
Covered retirement plans.
The provisions of this section apply to the following
retirement plans:
(1) the general state employees retirement plan of the Minnesota State Retirement System,
established under chapter 352;
(2) the correctional state employees retirement plan of the Minnesota State Retirement
System, established under chapter 352;
(3) the State Patrol retirement plan, established under chapter 352B;
(4) the general employees retirement plan of the Public Employees Retirement
Association, established under chapter 353;
(5) the public employees police and fire plan of the Public Employees Retirement
Association, established under chapter 353;
(6) the local government correctional service retirement plan of the Public Employees
Retirement Association, established under chapter 353E;
(7) the Teachers Retirement Association, established under chapter 354; deleted text begin and
deleted text end
(8) the St. Paul Teachers Retirement Fund Association, established under chapter 354Adeleted text begin .deleted text end new text begin ;
and
new text end
new text begin
(9) the local government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H.
new text end
Sec. 44.
Minnesota Statutes 2024, section 356.401, subdivision 3, is amended to read:
Subd. 3.
Covered retirement plans.
The provisions of this section apply to the following
retirement plans:
(1) the legislators retirement plan, established by chapter 3A, including constitutional
officers as specified in that chapter;
(2) the general state employees retirement plan of the Minnesota State Retirement System,
established by chapter 352;
(3) the correctional state employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;
(4) the State Patrol retirement plan, established by chapter 352B;
(5) the unclassified state employees retirement program, established by chapter 352D;
(6) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353;
(7) the public employees police and fire plan of the Public Employees Retirement
Association, established by chapter 353;
(8) the public employees defined contribution plan, established by chapter 353D;
(9) the local government correctional service retirement plan of the Public Employees
Retirement Association, established by chapter 353E;
(10) the statewide lump-sum volunteer firefighter plan, established by chapter 353G;
(11) the Teachers Retirement Association, established by chapter 354;
(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
(13) the individual retirement account plan, established by chapter 354B;
(14) the higher education supplemental retirement plan, established by chapter 354C;
deleted text begin and
deleted text end
(15) the judges retirement fund, established by chapter 490deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(16) the local government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established by chapter 353H.
new text end
Sec. 45.
Minnesota Statutes 2024, section 356.415, is amended by adding a subdivision
to read:
new text begin Subd. 1h. new text end
new text begin
Annual postretirement adjustments; Public Employees Retirement
Association; local government probation and telecommunicator plan.
new text end
new text begin
(a) Annuities,
disability benefits, and survivor benefits paid from the local government probation and
telecommunicator retirement plan of the Public Employees Retirement Association must
be increased, effective as of January 1, each year by the percentage of increase determined
under this subdivision. The increase to the annuity or benefit must be determined by
multiplying the monthly amount of the annuity or benefit by the percentage of increase
specified in paragraph (b) after taking into account any reduction to the percentage or
increase required under paragraph (d).
new text end
new text begin
(b) Effective January 1, 2027, and each January 1 thereafter, the percentage of increase
is one percent unless the federal Social Security Administration has announced a
cost-of-living adjustment pursuant to United States Code, title 42, section 415(i), in the last
quarter of the preceding calendar year that is greater than one percent. If the cost-of-living
adjustment announced by the federal Social Security Administration is greater than one
percent, the percentage of increase must be the same as the cost-of-living adjustment
announced. The percentage of increase must not exceed the applicable maximum percentage
under paragraph (c).
new text end
new text begin
(c) On January 1 each year, the applicable maximum percentage is 1.75 percent. The
applicable maximum percentage is 1.5 percent if:
new text end
new text begin
(1) the market value of assets is equal to or less than 85 percent of the actuarial accrued
liabilities as reported by the plan's actuary in the most recent two consecutive annual actuarial
valuations; or
new text end
new text begin
(2) the market value of assets is equal to or less than 80 percent of the actuarial accrued
liabilities as reported by the plan's actuary in the most recent annual actuarial valuation.
new text end
new text begin
(d)(1) If the recipient of an annuity, disability benefit, or survivor benefit has been
receiving the annuity or benefit for at least 12 months as of June 30 of the calendar year
immediately preceding the effective date of the increase, there is no reduction in the
percentage of increase.
new text end
new text begin
(2) If the recipient of an annuity, disability benefit, or survivor benefit has been receiving
the annuity or benefit for at least one month, but less than 12 months, as of June 30 of the
calendar year immediately preceding the effective date of the increase, the percentage of
increase is multiplied by a ratio of the number of months the annuity or benefit was received
as of June 30 of the preceding calendar year to 12.
new text end
new text begin
(e) An increase in annuity or benefit payments under this subdivision must be made
automatically unless written notice is filed by the recipient with the executive director of
the Public Employees Retirement Association requesting that the increase not be made.
new text end
Sec. 46.
Minnesota Statutes 2024, section 356.415, subdivision 2, is amended to read:
Subd. 2.
Covered retirement plans.
The provisions of this section apply to the following
retirement plans:
(1) the legislators retirement plannew text begin ,new text end established under chapter 3A, including constitutional
officers as specified in that chapter;
(2) the correctional state employees retirement plan of the Minnesota State Retirement
Systemnew text begin ,new text end established under chapter 352;
(3) the general state employees retirement plan of the Minnesota State Retirement Systemnew text begin ,new text end
established under chapter 352;
(4) the State Patrol retirement plannew text begin ,new text end established under chapter 352B;
(5) the general employees retirement plan of the Public Employees Retirement
Associationnew text begin ,new text end established under chapter 353;
(6) the public employees police and fire retirement plan of the Public Employees
Retirement Associationnew text begin ,new text end established under chapter 353;
(7) the local government correctional employees retirement plan of the Public Employees
Retirement Associationnew text begin ,new text end established under chapter 353E;
(8) the teachers retirement plannew text begin ,new text end established under chapter 354; deleted text begin and
deleted text end
(9) the judges retirement plannew text begin ,new text end established under chapter 490deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(10) the local government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H.
new text end
Sec. 47.
Minnesota Statutes 2024, section 356.461, subdivision 2, is amended to read:
Subd. 2.
Covered plans.
This section applies to the following retirement plans:
(1) the legislators retirement plan, established under chapter 3A, including constitutional
officers as specified in that chapter;
(2) the correctional state employees retirement plan of the Minnesota State Retirement
System, established under chapter 352;
(3) the general state employees retirement plan of the Minnesota State Retirement System,
established under chapter 352;
(4) the State Patrol retirement plan, established under chapter 352B;
(5) the unclassified state employees retirement program of the Minnesota State Retirement
System, established under chapter 352D;
(6) the judges retirement plan, established under chapter 490;
(7) the general employees retirement plan of the Public Employees Retirement
Association, established under chapter 353;
(8) the public employees police and fire retirement plan of the Public Employees
Retirement Association, established under chapter 353;
(9) the local government correctional service retirement plan of the Public Employees
Retirement Association, established under chapter 353E; deleted text begin and
deleted text end
(10) the Teachers Retirement Association, established under chapter 354deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(11) the local government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H.
new text end
Sec. 48.
Minnesota Statutes 2024, section 356.465, subdivision 3, is amended to read:
Subd. 3.
Covered retirement plans.
The provisions of this section apply to the following
retirement plans:
(1) the general state employees retirement plan of the Minnesota State Retirement Systemnew text begin ,new text end
established under chapter 352;
(2) the correctional state employees retirement plan of the Minnesota State Retirement
Systemnew text begin ,new text end established under chapter 352;
(3) the State Patrol retirement plannew text begin ,new text end established under chapter 352B;
(4) the legislators retirement plannew text begin ,new text end established under chapter 3A;
(5) the judges retirement plannew text begin ,new text end established under chapter 490;
(6) the general employees retirement plan of the Public Employees Retirement
Associationnew text begin ,new text end established under chapter 353;
(7) the public employees police and fire plan of the Public Employees Retirement
Associationnew text begin ,new text end established under chapter 353;
(8) the teachers retirement plannew text begin ,new text end established under chapter 354;
(9) the St. Paul Teachers Retirement Fund Associationnew text begin ,new text end established under chapter 354A;
deleted text begin and
deleted text end
(10) the local government correctional service retirement plan of the Public Employees
Retirement Associationnew text begin ,new text end established under chapter 353Edeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(11) the local government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H.
new text end
Sec. 49.
Minnesota Statutes 2024, section 356.47, subdivision 3, is amended to read:
Subd. 3.
Payment.
(a) Beginning one year after the reemployment withholding period
ends relating to the reemployment that gave rise to the limitation, and the filing of a written
application, the retired member is entitled to the payment, in a lump sum, of the value of
the person's amount under subdivision 2, plus annual compound interest. For the general
state employees retirement plan, the correctional state employees retirement plan, the general
employees retirement plan of the Public Employees Retirement Association, the public
employees police and fire retirement plan, the local government correctional employees
retirement plan,new text begin the local government probation and telecommunicator retirement plan,new text end and
the teachers retirement plan, the annual interest rate is six percent from the date on which
the amount was deducted from the retirement annuity to the date of payment or until January
1, 2011, whichever is earlier, and no interest after January 1, 2011. For the St. Paul Teachers
Retirement Fund Association, the annual interest is the rate of six percent from the date that
the amount was deducted from the retirement annuity to the date of payment or June 30,
2011, whichever is earlier, and with no interest accrual after June 30, 2011.
(b) The written application must be on a form prescribed by the chief administrative
officer of the applicable retirement plan.
(c) If the retired member dies before the payment provided for in paragraph (a) is made,
the amount is payable, upon written application, to the deceased person's surviving spouse,
or if none, to the deceased person's designated beneficiary, or if none, to the deceased
person's estate.
(d) If the amount under subdivision 2 is an eligible rollover distribution as defined in
section 356.633, subdivision 1, paragraph (d), the applicable retirement plan shall provide
notice and an election:
(1) to the member regarding the member's right to elect a direct rollover under section
356.633, subdivisions 1 and 2, in lieu of a direct payment; or
(2) if paragraph (c) applies and the amount is to be paid to a person who is a distributee
as defined in section 356.633, subdivision 1, paragraph (b), to the distributee regarding the
distributee's right to elect a direct rollover under section 356.633, subdivisions 1 and 2, in
lieu of a direct payment.
Sec. 50.
Minnesota Statutes 2024, section 356.48, subdivision 1, is amended to read:
Subdivision 1.
Covered plans.
This section applies to the following retirement plans:
(1) the general state employees retirement plan of the Minnesota State Retirement Systemnew text begin ,new text end
established under chapter 352;
(2) the correctional state employees retirement plan of the Minnesota State Retirement
Systemnew text begin ,new text end established under chapter 352;
(3) the State Patrol retirement plannew text begin ,new text end established under chapter 352B;
(4) the unclassified state employees retirement program of the Minnesota State Retirement
Systemnew text begin ,new text end established under chapter 352D;
(5) the general employee retirement plan of the Public Employees Retirement Associationnew text begin ,new text end
established under chapter 353;
(6) the public employees police and fire retirement plannew text begin ,new text end established under chapter 353;
(7) the local government correctional employees retirement plan of the Public Employees
Retirement Associationnew text begin ,new text end established under chapter 353E;
(8) the Teachers Retirement Associationnew text begin ,new text end established under chapter 354;
(9) the St. Paul Teachers Retirement Fund Associationnew text begin ,new text end established under chapter 354A;
deleted text begin and
deleted text end
(10) the uniform judicial retirement plannew text begin ,new text end established under chapter 490deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(11) the local government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H.
new text end
Sec. 51.
Minnesota Statutes 2024, section 356.611, subdivision 6, is amended to read:
Subd. 6.
Covered retirement plan.
As used in this section, "covered retirement plan"
means any of the following plans:
(1) the legislator's retirement plan, established by chapter 3A, including constitutional
officers as specified in that chapter;
(2) the general state employees retirement plan of the Minnesota State Retirement System,
established by chapter 352;
(3) the correctional state employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;
(4) the State Patrol retirement plan, established by chapter 352B;
(5) the unclassified state employees retirement plan, established by chapter 352D;
(6) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353;
(7) the public employees police and fire retirement plan of the Public Employees
Retirement Association, established by chapter 353;
(8) the public employees defined contribution plan, established by chapter 353D;
(9) the local government correctional service retirement plan of the Public Employees
Retirement Association, established by chapter 353E;
(10) the statewide volunteer firefighter retirement plan, established by chapter 353G;
(11) the Teachers Retirement Association, established by chapter 354;
(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
(13) the higher education individual retirement account plan, established by chapter
354B;
(14) the higher education supplemental retirement plan, established by chapter 354C;
(15) a retirement plan of a volunteer firefighter retirement association subject to chapter
424A;
(16) the judges retirement plan, established by chapter 490; deleted text begin or
deleted text end
(17) the Bloomington Fire Department Relief Association governed by Laws 2013,
chapter 111, article 5, sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws
1965, chapter 446, as amendeddeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(18) the local government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H.
new text end
Sec. 52. new text begin TRANSFER OF ASSETS.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, unless the language or
context indicates that a different meaning is intended, the following terms have the meanings
given.
new text end
new text begin
(b) "Executive director" means the executive director of the Public Employees Retirement
Association appointed under Minnesota Statutes, section 353.03, subdivision 3a.
new text end
new text begin
(c) "General plan" means the general employees retirement plan of the Public Employees
Retirement Association.
new text end
new text begin
(d) "Probation and telecommunicator plan" means the local government probation and
telecommunicator retirement plan of the Public Employees Retirement Association.
new text end
new text begin Subd. 2. new text end
new text begin Transfer of assets. new text end
new text begin
(a) No later than 15 days after January 1, 2027, the assets
attributable to the members of the general plan whose retirement plan coverage is transferred
from the general plan to the probation and telecommunicator plan on January 1, 2027, must
be transferred from the general employees retirement fund to the local government probation
and telecommunicator retirement fund.
new text end
new text begin
(b) The executive director must direct the actuary retained by the Public Employees
Retirement Association under Minnesota Statutes, section 356.214, subdivision 1, to calculate
the amount of assets to be transferred under paragraph (a). The amount of assets to be
transferred must be calculated as provided in the applicable appendix to the standards for
actuarial work adopted under Minnesota Statutes, section 3.85, subdivision 10.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 53. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 44 and sections 46 to 52 are effective January 1, 2027. Section 45 is effective
for postretirement adjustments beginning on or after January 1, 2027.
new text end
ARTICLE 6
PROBATION AND TELECOMMUNICATOR PLANS; TRANSFERS FROM THE
GENERAL FUND; TEMPORARY REDUCTION IN EMPLOYEE CONTRIBUTION
RATES
Section 1. new text begin TRANSFERS FROM THE GENERAL FUND TO THE PENSION FUNDS
FOR PROBATION OFFICERS AND TELECOMMUNICATORS.
new text end
new text begin Subdivision 1. new text end
new text begin
Transfer to the local government probation and telecommunicator
retirement fund.
new text end
new text begin
$2,610,000 in fiscal year 2027 is transferred from the general fund to the
local government probation and telecommunicator retirement fund established by Minnesota
Statutes, section 353H.02, subdivision 1. This is a onetime transfer. This transfer must be
made no later than January 15, 2027.
new text end
new text begin Subd. 2. new text end
new text begin Transfer to the general state employees retirement fund. new text end
new text begin
$390,000 in fiscal
year 2027 is transferred from the general fund to the general state employees retirement
fund established by Minnesota Statutes, section 352.04, subdivision 1, for the benefit of the
probation officers and public safety telecommunicators as defined by Minnesota Statutes,
section 352.88, subdivision 2, clauses (i) and (j), respectively. This is a onetime transfer.
This transfer must be made no later than January 15, 2027.
new text end
Sec. 2. new text begin TEMPORARY REDUCTION OF EMPLOYEE CONTRIBUTION RATES.
new text end
new text begin Subdivision 1. new text end
new text begin
Employee contributions to the MSRS probation and telecommunicator
subplan.
new text end
new text begin
The additional employee contribution required under Minnesota Statutes, section
352.88, subdivision 5, paragraph (a), is reduced from 2.71 percent of salary to two percent
of salary through August 31, 2028.
new text end
new text begin Subd. 2. new text end
new text begin
Employee contributions to the PERA probation and telecommunicator
plan.
new text end
new text begin
The employee contribution required under Minnesota Statutes, section 353H.04,
subdivision 1, paragraph (a), is reduced from 8.82 percent of salary to eight percent of salary
through August 31, 2028.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
This section expires September 1, 2028.
new text end
Sec. 3. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 and 2 are effective January 1, 2027.
new text end
ARTICLE 7
VOLUNTEER FIREFIGHTERS
Section 1.
Minnesota Statutes 2024, section 353G.02, subdivision 4, is amended to read:
Subd. 4.
Periodic audit; biennial actuarial valuation; deleted text begin biennialdeleted text end new text begin annualnew text end funding
report.
(a) The legislative auditor shall periodically audit the retirement fund.
(b) The executive director must retain an approved actuary under section 356.214 to
perform biennial actuarial valuations of each fire department account in the monthly division.
The actuarial valuation must conform with section 356.215 and the standards for actuarial
work. The actuarial valuation must contain sufficient detail for each participating employer
to ascertain the actuarial condition of its account in the retirement fund and the amount of
its required contribution to the account.
(c) The executive director must perform deleted text begin biennialdeleted text end new text begin annualnew text end funding assessments of each
fire department account in the deleted text begin lump-sum divisiondeleted text end new text begin defined benefit plannew text end . The assessment must
comply with section 353G.08, subdivision 1new text begin or 1a, as applicablenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2024, section 353G.08, subdivision 1, is amended to read:
Subdivision 1.
deleted text begin Biennialdeleted text end new text begin Annualnew text end funding reports; lump-sum division.
(a) The executive
director must new text begin annually new text end determine the funding requirements for each fire department account
in the lump-sum division on or before August 1 deleted text begin every other yeardeleted text end . The funding requirements
computed under this subdivision must be determined using a mathematical procedure
developed and certified as accurate by the approved actuary retained by the association and
must be based on present value factors using a six percent investment return rate, without
any decrement assumptions. The executive director must provide written notice of the
funding requirements to the entity or entities associated with the fire department whose
active firefighters are covered by the plan.
(b) The overall funding balance of each fire department account for the current calendar
year must be determined in the following manner:
(1) The total accrued liability for all active and deferred members of the fire department
as of December 31 of the current year must be calculated based on the service credit of
active and deferred members as of that date.
(2) The assets of the fire department account projected to December 31 of the current
year, including receipts by and disbursements from the account anticipated to occur on or
before December 31, must be calculated. The executive director must begin phasing in the
use of actuarial value of assets in making this calculation beginning with the funding reports
for 2026.
(3) The amount of the assets calculated under clause (2) must be subtracted from the
amount of the total accrued liability calculated under clause (1). If the amount of the assets
exceeds the amount of the total accrued liability, then the account is considered to have a
surplus over full funding. If the amount of the assets is less than the amount of the total
accrued liability, then the account is considered to have a deficit from full funding. If the
amount of assets is equal to the amount of the total accrued liability, then the account is
considered to be fully funded.
(c) The financial requirements of each fire department for the following calendar year
must be determined in the following manner:
(1) The total accrued liability for all active and deferred members of the fire department
as of December 31 of the calendar year next following the current calendar year must be
calculated based on the service used in the calculation under paragraph (b), clause (1),
increased by one year.
(2) The increase in the total accrued liability of the account for the following calendar
year over the total accrued liability of the account for the current year must be calculated.
(3) The amount of administrative expenses of the account must be calculated by
multiplying the per-person dollar amount of the administrative expenses for the most recent
prior calendar year by the number of active and deferred firefighters reported to the
association on the most recent service credit certification form for the account.
(4) If the account is fully funded, the financial requirement of the account for the
following calendar year is the total of the amounts calculated under clauses (2) and (3).
(5) If the account has a deficit from full funding, the financial requirement of the account
for the following calendar year is the total of the amounts calculated under clauses (2) and
(3) plus an amount equal to one-tenth of the amount of the deficit from full funding of the
account.
(6) If the account has a surplus over full funding, the financial requirement of the account
for the following calendar year is the financial requirement of the account calculated as
though the account was fully funded under clause (4) and, if the account has also had a
surplus over full funding during the prior two years, additionally reduced by an amount
equal to one-tenth of the amount of the surplus over full funding of the account.
(d) The required contribution of the entity or entities associated with the fire department
whose active firefighters are covered by the lump-sum division is the annual financial
requirements of the fire department account under paragraph (c) reduced by the amount of
any fire state aid payable under chapter 477B or police and firefighter retirement
supplemental state aid payable under section 423A.022 that is reasonably anticipated to be
received by the retirement plan attributable to the entity or entities during the following
calendar year, and an amount of investment earnings on the assets projected to be received
during the following calendar year calculated at the rate of six percent per annum. The
required contribution must be allocated between the entities if more than one entity is
involved. A reasonable amount of anticipated fire state aid is an amount that does not exceed
the fire state aid received in the prior year multiplied by the factor 1.035.
deleted text begin
(e) The financial requirement for each fire department account in the lump-sum division
for the second year of the biennial valuation period must be in the amount determined in
paragraph (d) increased by six percent, but no more than the excess, if any, of the amount
determined under paragraph (c), clause (1), less the actual market value of assets in the fire
department account as of that date.
deleted text end
deleted text begin (f)deleted text end new text begin (e)new text end The required contribution calculated in paragraph (d) must be paid to the retirement
plan on or before December 31 of the year for which it was calculated. If the contribution
is not received by the plan by December 31, it is payable with interest at an annual compound
rate of six percent from the date due until the date payment is received by the plan. If the
entity does not pay the full amount of the required contribution, the executive director shall
collect the unpaid amount under section 353.28, subdivision 6.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2024, section 424A.001, subdivision 8, is amended to read:
Subd. 8.
Firefighting service.
"Firefighting service" means duties performed by
firefighters and, if approved by the appropriate municipality or municipalitiesnew text begin under section
424A.01new text end , duties performed by fire prevention personnelnew text begin and volunteer emergency medical
personnelnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 4.
Minnesota Statutes 2024, section 424A.001, subdivision 9, is amended to read:
Subd. 9.
Separate from active service.
"Separate from active service" means deleted text begin that a
firefighterdeleted text end permanently deleted text begin ceasesdeleted text end new text begin ceasingnew text end to perform deleted text begin fire suppression duties and fire prevention
dutiesdeleted text end anddeleted text begin , permanently ceases todeleted text end supervise deleted text begin fire suppression, and fire prevention dutiesdeleted text end new text begin all
firefighting service new text end with a particular fire department.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 5.
Minnesota Statutes 2024, section 424A.001, subdivision 9a, is amended to read:
Subd. 9a.
Break in service.
"Break in service" means temporarily ceasing deleted text begin all of the
followingdeleted text end new text begin to perform and supervise all firefighting servicenew text end with a particular fire departmentdeleted text begin :deleted text end new text begin .
new text end
deleted text begin
(1) performing fire suppression duties;
deleted text end
deleted text begin
(2) performing fire prevention duties;
deleted text end
deleted text begin
(3) supervising fire suppression duties; and
deleted text end
deleted text begin
(4) supervising fire prevention duties.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 6.
Minnesota Statutes 2024, section 424A.001, subdivision 9b, is amended to read:
Subd. 9b.
Firefighter.
"Firefighter" means a person who isnew text begin a member of a fire department
andnew text end a volunteer firefighter, paid on-call firefighter, part-time firefighter, full-time firefighter,
career firefighter, or any combination thereofnew text begin and who, in that capacity, engages in
firefighting servicenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 7.
new text begin
[424A.012] RETURN TO ACTIVE FIREFIGHTING SERVICE.
new text end
new text begin Subdivision 1. new text end
new text begin
Return to active firefighting without prior receipt of pension or
benefit.
new text end
new text begin
(a) This subdivision governs the service pension calculation requirements of a
firefighter who returns to active service after a break in service and who has not previously
been paid a service pension or disability benefit from the relief association. This subdivision
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 or state statute.
new text end
new text begin
(b) 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 permitted
in the bylaws of the relief association, the firefighter may again become an active member
of the relief association, subject to the requirements of this subdivision and the service
pension calculation requirements under this section.
new text end
new text begin
(c) A firefighter who has been granted an approved leave of absence not exceeding one
year by the fire department or the relief association is exempt from any minimum period
of resumption service requirement established under paragraph (f).
new text end
new text begin
(d) A firefighter 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 any minimum period of
resumption service requirement established under paragraph (f).
new text end
new text begin
(e) A firefighter may qualify to receive a service pension from the relief association for
the original and resumption service periods if the firefighter:
new text end
new text begin
(1) is a former firefighter who has not been paid a service pension or disability benefit;
new text end
new text begin
(2) returns to active relief association membership under paragraph (b); and
new text end
new text begin
(3) meets the service requirements of section
new text end
new text begin
424A.016, subdivision 3
new text end
new text begin
, or
new text end
new text begin
424A.02,
subdivision 2
new text end
new text begin
, as applicable, and as defined in the bylaws in effect on the date of the
firefighter's separation from active service, based on the original and resumption years of
service credit.
new text end
new text begin
(f) A defined benefit relief association may define in the relief association's bylaws a
minimum period of resumption service requirement that applies to firefighters who return
to active membership and who have not been paid a service pension or disability benefit
for their original period of service. The service pension benefit level used to calculate any
service pension payable for both the original and resumption service periods is:
new text end
new text begin
(1) the service pension benefit level in effect on the date of the firefighter's separation
from active resumption service if a minimum period of resumption service requirement is
defined in the bylaws and is completed prior to a firefighter's cessation of resumption service
or if no resumption service is defined in the bylaws; or
new text end
new text begin
(2) the service pension benefit level in effect on the date of the firefighter's termination
of original service if a minimum period of resumption service requirement is defined in the
bylaws but is not completed prior to a firefighter's cessation of resumption service.
new text end
new text begin
(g) Any service pension payable under this subdivision is less any amounts previously
forfeited under section 424A.016, subdivision 4, or 424A.02, subdivision 3, paragraph (c),
as applicable.
new text end
new text begin Subd. 2. new text end
new text begin Return to active firefighting after receipt of pension or benefit. new text end
new text begin
(a) This
subdivision governs the service pension calculation requirements of a firefighter who resumes
performing active firefighting service with the fire department associated with the relief
association after being paid a service pension or disability benefit from the relief association.
The firefighter must wait at least 60 days following receipt of the pension or benefit before
resuming active firefighting service with the fire department and, if permitted in the bylaws
of the relief association, active membership in the relief association.
new text end
new text begin
(b) A firefighter may qualify to receive a service pension from the relief association for
the resumption service period if the firefighter:
new text end
new text begin
(1) is a former firefighter who has been paid a service pension or disability benefit or is
receiving a monthly benefit service pension;
new text end
new text begin
(2) returns to active relief association membership; and
new text end
new text begin
(3) meets the service requirements defined in the relief association's bylaws in effect on
the date of the firefighter's separation from active service and, as applicable:
new text end
new text begin
(i) paragraph (g);
new text end
new text begin
(ii) section 424A.016, subdivision 3; or
new text end
new text begin
(iii) section 424A.02, subdivision 2.
new text end
new text begin
(c) For defined benefit relief associations, the service pension for the resumption service
period must be calculated by applying the service pension benefit level in effect on the date
of the firefighter's termination of resumption service for all years of the resumption service.
new text end
new text begin
(d) For defined contribution relief associations, the 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.
new text end
new text begin
(e) If provided in the bylaws, a firefighter who returns to active relief association
membership 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.
new text end
new text begin
(f) If a firefighter receiving a monthly benefit service pension returns to active monthly
benefit relief association membership under paragraph (b):
new text end
new text begin
(1) the firefighter's monthly service pension payments are suspended as of the first day
of the month next following the date on which the firefighter returns to active membership
if the relief association bylaws prohibit the firefighter from collecting a monthly service
pension;
new text end
new text begin
(2) 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; and
new text end
new text begin
(3) if the monthly service pension payments were suspended under clause (1), the
suspended initial service pension resumes as of the first of the month next following the
termination of the resumption service.
new text end
new text begin
(g) A relief association may define in the relief association's bylaws vesting requirements
that apply solely to former firefighters who have been paid a service pension or disability
benefit and subsequently return to active relief association membership. If a relief association
elects to define vesting requirements that are applicable solely to these former firefighters,
the requirements may be different than the requirements for all other relief association
members and need not comply with the service requirements of section 424A.016, subdivision
3, or 424A.02, subdivision 2, as applicable, but cannot require more than 20 years of active
service for full vesting.
new text end
new text begin
(h) No firefighter may be paid a service pension more than once for the same period of
service.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 8.
Minnesota Statutes 2024, section 424A.014, subdivision 1, is amended to read:
Subdivision 1.
Financial report and audit.
(a) An annual financial report and audited
financial statements in accordance with paragraphs (c) to (e) must be submitted by the board
of trustees of the Bloomington Fire Department Relief Association and the board of trustees
of each firefighters relief association with special fund assets of at least deleted text begin $750,000deleted text end new text begin $1,000,000new text end
or special fund liabilities of at least deleted text begin $750,000deleted text end new text begin $1,000,000new text end , according to deleted text begin anydeleted text end new text begin thenew text end previous
year's financial report.
(b) The board of trustees of a firefighters relief association with special fund assets of
less than deleted text begin $750,000deleted text end new text begin $1,000,000new text end and special fund liabilities of less than deleted text begin $750,000deleted text end new text begin $1,000,000new text end ,
according to deleted text begin eachdeleted text end new text begin thenew text end previous year's financial report, may submit an annual financial report
and audited financial statements in accordance with paragraphs (c) to (e).new text begin If the special fund
assets or special fund liabilities of a firefighters relief association to which this paragraph
applies subsequently exceed $1,000,000 as of the beginning of a calendar year, then an
annual financial report and audited financial statements are required under paragraph (a),
beginning with reports filed with the state auditor in the calendar year following the calendar
year in which the $1,000,000 threshold was exceeded.
new text end
(c) The financial report must cover the relief association's special fund and general fund
and be in the style and form prescribed by the state auditor. The financial report must be
countersigned by:
(1) the municipal clerk or clerk-treasurer of the municipality in which the relief
association is located if the relief association is directly associated with a municipal fire
department;
(2) the municipal clerk or clerk-treasurer of the largest municipality in population that
contracts with the independent nonprofit firefighting corporation if the firefighters relief
association is a subsidiary of an independent nonprofit firefighting corporation, and by the
secretary of the independent nonprofit firefighting corporation; or
(3) the chief financial official of the county in which the firefighters relief association
is located or primarily located if the relief association is associated with a fire department
that is not located in or associated with an organized municipality.
(d) The financial report must be retained in the office of the Bloomington Fire Department
Relief Association or the firefighters relief association for public inspection and must be
filed with the governing body of the government subdivision in which the associated fire
department is located after the close of the fiscal year. One copy of the financial report must
be furnished to the state auditor on or before June 30 after the close of the fiscal year.
(e) Audited financial statements that present the true financial condition of the relief
association's special fund and general fund must be attested to by a certified public accountant
or by the state auditor and must be filed with the state auditor on or before June 30 after the
close of the fiscal year. Audits must be conducted in compliance with generally accepted
auditing standards and section 6.65 governing audit procedures. The state auditor may accept
audited financial statements in lieu of the financial report required in paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective December 31, 2026, and applies to
audited financial statements for calendar year 2026 and thereafter. A relief association with
special fund assets of less than $1,000,000 and special fund liabilities of less than $1,000,000
on December 31, 2026, is not required to submit audited financial statements under Minnesota
Statutes, section 424A.014, subdivision 1, unless and until the association's special fund
assets or special fund liabilities exceed $1,000,000, even if audited financial statements
were required on the date immediately prior to December 31, 2026.
new text end
Sec. 9.
Minnesota Statutes 2024, section 424A.016, subdivision 4, is amended to read:
Subd. 4.
Individual accounts.
(a) An individual account must be established for each
firefighter who is a member of the relief association.
(b) To each individual active member account must be credited an equal share of:
(1) any amounts of fire state aid and police and firefighter retirement supplemental state
aid received by the relief association;
(2) any amounts of municipal contributions to the relief association raised from levies
on real estate or from other available municipal revenue sources exclusive of fire state aid;
and
(3) any amounts equal to the share of the assets of the special fund to the credit of:
(i) any former member who terminated active service with the fire department to which
the relief association is associated before meeting the minimum service requirement provided
for in subdivision 2, paragraph (b), and either has not returned to active service with the
fire department for a period no shorter than five years or has died and no survivor benefit
or death benefit is payable; or
(ii) any member who terminated active service before becoming 100 percent vested in
the member's account under subdivision 2, paragraph (b), and any applicable provision of
the bylaws of the relief association.
(c) In addition, any investment return on the assets of the special fund must be credited
in proportion to the share of the assets of the special fund to the credit of each individual
active member account and inactive member account, unless the inactive member is a
deferred member as defined in subdivision 6.
(d) Administrative expenses of the relief association payable from the special fund may
be deducted from individual accounts in a manner specified in the bylaws of the relief
association.
(e) Amounts to be credited to individual accounts under paragraph (b) must be allocated
uniformly for all years of active service and allocations must be made for all years of service,
except for caps on service credit if so provided in the bylaws of the relief association.
Amounts forfeited under paragraph (b), clause (3), before a resumption of active service
and membership under section deleted text begin 424A.01, subdivision 6,deleted text end new text begin 424A.012new text end new text begin new text end remain forfeited and may
not be reinstated upon the resumption of active service and membership. The allocation
method may utilize monthly proration for fractional years of service, as the bylaws or articles
of incorporation of the relief association so provide. The bylaws or articles of incorporation
may define a "month," but the definition must require a calendar month to have at least 16
days of active service. If the bylaws or articles of incorporation do not define a "month," a
"month" is a completed calendar month of active service measured from the member's date
of entry to the same date in the subsequent month.
(f) At the time that the payment of a service pension commences under subdivision 2
and any applicable provision of the bylaws of the relief association, a retiring member is
entitled to that portion of the assets of the special fund to the credit of the member in the
individual member account which is nonforfeitable under subdivision 3 and any applicable
provision of the bylaws of the relief association based on the number of years of service to
the credit of the retiring member.
(g) Annually, the secretary of the relief association shall certify the individual account
allocations to the state auditor at the same time that the annual financial statement or financial
report and audit of the relief association, whichever applies, is due under section 424A.014.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 10.
Minnesota Statutes 2025 Supplement, section 424A.016, subdivision 6, is amended
to read:
Subd. 6.
Deferred service pensions.
(a) A "deferred member" means a member of a
relief association who has separated from active service and membership and has completed
the minimum service and membership requirements in subdivision 2. The requirement that
a member separate from active service and membership is waived for any person who has
discontinued volunteer firefighter and paid on-call firefighter duties and is employed on a
part-time or full-time basis under section 424A.015, subdivision 1.
(b) A deferred member is entitled to receive a deferred service pension as soon as
practicable after the member submits a valid written application for the distribution and
complies with any conditions as to age prescribed by the relief association's bylaws.
(c) A defined contribution relief association must credit deleted text begin interest ordeleted text end additional investment
performance on the deferred lump-sum service pension during the period of deferral for all
deferred members on or after January 1, 2021. A defined contribution relief association
may specify in its bylaws the method by which it will credit deleted text begin interest ordeleted text end additional investment
performance to the accounts of deferred members. Such method shall be limited to one of
the three methods provided in this paragraph. In the event the bylaws do not specify a
method, the deleted text begin interest ordeleted text end additional investment performance must be credited using the method
defined in clause (3). The permissible methods are:
(1) at the investment performance rate actually earned on that portion of the assets if the
deferred benefit amount is invested by the relief association in a separate account established
and maintained by the relief association;
(2) at the investment performance rate actually earned on that portion of the assets if the
deferred benefit amount is invested in a separate investment vehicle held by the relief
association; or
(3) at the investment return on the assets of the special fund of the defined contribution
relief association in proportion to the share of the assets of the special fund to the credit of
each individual deferred member account.
(d) Notwithstanding the requirements of section 424A.015, subdivision 6, bylaw
amendments made in accordance with paragraph (c) on or before January 1, 2022, shall
apply to members already in deferred status as of January 1, 2021.
(e) Unless the bylaws provide differently, deleted text begin interest ordeleted text end additional investment performance
must be allocated to each deferred member account beginning on the date that the member
separates from active service and membership and ending on the last date that the deferred
member account is valued before the final distribution of the deferred service pension.
(f) Notwithstanding the requirements of section 424A.015, subdivision 6, a relief
association that amends its bylaws to lower the required minimum retirement age may
specify in the bylaws amendment that the lower minimum retirement age applies to members
who separated from active service and membership prior to the effective date of the bylaws
amendment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 11.
Minnesota Statutes 2025 Supplement, section 424A.05, subdivision 3, is amended
to read:
Subd. 3.
Authorized disbursements from special fund.
(a) Disbursements from the
special fund may not be made for any purpose other than one of the following:
(1) for the payment or direct rollover under section 356.633 of service pensions to
members of the relief association if authorized and paid under law and the bylaws governing
the relief association;
(2) for the purchase of an annuity for the applicable person under section 424A.015,
subdivision 3new text begin , or to replace a monthly benefit service pension under section 424A.093,
subdivision 1new text end ;
(3) for the payment or direct rollover under section 356.633 of temporary or permanent
disability benefits to disabled members of the relief association if authorized and paid under
law and specified in amount in the bylaws governing the relief association;
(4) for the payment or direct rollover under section 356.633 of survivor benefits or for
the payment of a death benefit to the estate of the deceased active or deferred firefighter, if
authorized and paid under law and specified in amount in the bylaws governing the relief
association;
(5) for the payment of the fees, dues and assessments to the Minnesota State Fire
Department Association and to the Minnesota State Fire Chiefs Association in order to
entitle relief association members to membership in and the benefits of these associations
or organizations;
(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit
Association, or an insurance company licensed by the state of Minnesota offering casualty
insurance, in order to entitle relief association members to membership in and the benefits
of the association or organization;
(7) for the payment of administrative expenses of the relief association as authorized
under subdivision 3b; and
(8) for the payment or direct rollover under section 356.633 of a service pension to the
former spouse of a member or former member of a relief association, if the former spouse
is an alternate payee designated in a qualified domestic relations order under subdivision
5.
(b) Checks or authorizations for electronic fund transfers for disbursements authorized
by this section must be signed by the relief association treasurer and at least one other elected
trustee who has been designated by the board of trustees to sign the checks or authorizations.
A relief association may make disbursements authorized by this subdivision by electronic
fund transfers only if the specific method of payment and internal control policies and
procedures regarding the method are approved by the board of trustees.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2024, section 424B.22, subdivision 5, is amended to read:
Subd. 5.
Determination of assets and liabilities.
(a) The board of trustees deleted text begin shalldeleted text end new text begin mustnew text end
determine the following as of the date of termination of the retirement plan:
(1) the fair market value of the assets of the special fund;
(2) deleted text begin the present value ofdeleted text end each participant's accrued benefit, taking into account full vesting
under subdivision 3 and any increased lump-sum or monthly benefit level approved under
subdivision 4;
(3) deleted text begin the present value ofdeleted text end any benefit remaining to be paid to deleted text begin eachdeleted text end new text begin anynew text end retiree in pay statusdeleted text begin ,
if anydeleted text end new text begin and to any other benefit recipientnew text end ; and
(4) administrative expenses incurred or reasonably anticipated to be incurred through
the date on which all retirement benefits have been distributed or transferred or, if later, the
effective date of the dissolution of the relief association.
(b) The board of trustees deleted text begin shalldeleted text end new text begin mustnew text end compile a schedule that includes the following
information:
(1) the name of each participant, including each retiree in pay statusnew text begin ,new text end to whom deleted text begin adeleted text end new text begin an
accruednew text end benefit deleted text begin or pensiondeleted text end is or will be owed;
(2) the name of each other benefit recipient to whom a benefit deleted text begin or pensiondeleted text end is or will be
owed; and
(3) for each individual described in clauses (1) and (2), the amount of the benefit deleted text begin or
pensiondeleted text end to which the individual is entitled under the bylaws of the relief association, taking
into account the changes required or permitted by this sectiondeleted text begin ,deleted text end new text begin andnew text end the corresponding number
of years of service on which the benefit deleted text begin or pensiondeleted text end is baseddeleted text begin , and the earliest date on which
the benefit or pension would have been payable under the bylaws of the relief associationdeleted text end .
(c) If the relief association is dissolving, in addition to the determination under paragraph
(a) for the retirement plan, the board of trustees deleted text begin shalldeleted text end new text begin mustnew text end determine, as of the effective
date of the dissolution of the relief association, the legal obligations of the general fund of
the relief association.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 13.
Minnesota Statutes 2024, section 424B.22, subdivision 7, is amended to read:
Subd. 7.
Allocation of surplus.
(a) If the retirement plan is a defined benefit plan and
if, after completing the determination of assets, liabilities, and administrative expenses under
subdivision 5, deleted text begin there isdeleted text end new text begin the retirement plan's assets exceed liabilities and administrative
expenses, resulting innew text end a surplus, the board of trustees deleted text begin shalldeleted text end new text begin mustnew text end transfer to the affiliated
municipality the lesser of (1) the amount of the surplus, or (2) the sum of all required
contributions, without investment earnings or interest thereon, made by the municipality to
the relief association during the year in which the termination of the retirement plan occurs
or during the preceding nine years.
(b) If the affiliated municipality did not make any required contributions to the relief
association during the current or preceding nine years or if, after the transfer described in
paragraph (a), there is surplus remaining, the relief association and the municipality will
mutually agree on an allocation between them of the remaining surplus.
(c) If, within 180 days deleted text begin ofdeleted text end new text begin afternew text end the date of termination of the retirement plan, the
municipality and relief association have not reached an agreement on the allocation of the
surplus under paragraph (b), then 50 percent of the surplus deleted text begin shalldeleted text end new text begin mustnew text end be retained by the
relief association and 50 percent of the surplus deleted text begin shalldeleted text end new text begin mustnew text end be transferred to the affiliated
municipality.
(d) Any surplus retained by the relief association under paragraph (c) deleted text begin shalldeleted text end new text begin mustnew text end be
allocated among all participants eligible to share in the surplusnew text begin under paragraph (e)new text end in the
same proportion that the deleted text begin present value of thedeleted text end accrued benefit for each eligible participant
bears to the total deleted text begin present value of thedeleted text end accrued benefits of all participants eligible to share
in the surplus, and each eligible participant's new text begin accrued new text end benefit, as determined under subdivision
5, paragraph (a), clause (2), deleted text begin shalldeleted text end new text begin mustnew text end be increased by the participant's share of the surplus.new text begin
If a participant is receiving or has elected to receive a monthly pension, the participant's
accrued benefit for the purpose of allocating surplus is the lump sum present value of the
monthly pension benefit to which the participant is entitled to receive.
new text end
new text begin (e)new text end The board of trustees deleted text begin shalldeleted text end new text begin mustnew text end determine eligibility to share in the surplus, which
may include all participants and any former participants who, within the last three years or
such other number of years as determined by the board of trustees, separated from active
service and received their retirement benefit. If the board of trustees decides to include
former participants in the allocation of the surplus, the board of trustees deleted text begin shalldeleted text end new text begin mustnew text end modify
the method for allocating the surplus to take into account the former participants.
deleted text begin (e)deleted text end new text begin (f)new text end Any amount of surplus transferred to the affiliated municipality under this
subdivision may only be used for the purposes described in section 424A.08, paragraph (a)
or (b).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Minnesota Statutes 2024, section 424B.22, subdivision 8, is amended to read:
Subd. 8.
Immediate distribution of retirement benefits and payment of all other
obligations.
(a) The board of trustees deleted text begin shalldeleted text end new text begin mustnew text end liquidate the assets of the special fund and
pay retirement benefits and administrative expenses under the retirement plan within 210
days after the effective date of the termination of the retirement plan.
(b) If the retirement plan is a defined benefit plan that pays lump-sum benefits or a
defined contribution plan, without regard to whether the participant has attained age 50,new text begin the
board of trustees must offernew text end each participant and other benefit recipient deleted text begin shall be permitteddeleted text end new text begin
the optionnew text end to elect an immediate distribution or a direct rollover of the deleted text begin participant'sdeleted text end benefit
to an eligible retirement plan as permitted under section 356.633, subdivisions 1 and 2, if
the benefit is an eligible rollover distribution as defined in section 356.633, subdivision 1,
paragraph (d).
(c) If the retirement plan is a defined benefit plan that pays monthly pension benefits,
the board of trustees deleted text begin shalldeleted text end new text begin mustnew text end , at the election of the participant or other benefit recipient,
purchase an annuity contract under section 424A.015, subdivision 3, naming the participant
or other benefit recipient, as applicable, as the insured or distribute a lump-sum amount that
is equal to the present value of the monthly pension benefits to which the participant or
other benefit recipient is entitled. If an annuity is elected by the participant or other benefit
recipient, the annuity deleted text begin shalldeleted text end new text begin mustnew text end provide for commencement at a date elected by the insured,
to be paid as an annuity for the life of the insured. new text begin The board of trustees must transfer new text end legal
title to the annuity contract deleted text begin shall be transferreddeleted text end to the insured. If new text begin the participant or other
benefit recipient elects new text end a lump sum deleted text begin is electeddeleted text end new text begin amountnew text end , thenew text begin board of trustees must offer the
participant or other benefit recipient thenew text end option under paragraph (b) to take an immediate
distribution or a direct rollover deleted text begin shall applydeleted text end .
(d) The board of trustees deleted text begin shalldeleted text end new text begin mustnew text end complete the distribution of all assets of the special
fund by making any remaining distributions or transfers as required under subdivision 9 on
behalf of participants or other benefit recipients who cannot be located or are deleted text begin unresponsivedeleted text end new text begin
nonresponsivenew text end and paying any remaining administrative expenses related to the termination
of the plan.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 15.
Minnesota Statutes 2024, section 424B.22, subdivision 9, as amended by Laws
2026, chapter 56, section 36, is amended to read:
Subd. 9.
Missingnew text begin or nonresponsivenew text end participants.
deleted text begin
(a) For purposes of this subdivision,
the terms defined in this subdivision have the meanings given them.
deleted text end
deleted text begin
(b) "Retirement benefit" means:
deleted text end
deleted text begin
(1) the participant's account balance if the retirement plan is a defined contribution plan;
deleted text end
deleted text begin
(2) the participant's lump-sum benefit if the retirement plan is a defined benefit plan that
pays a lump sum; or
deleted text end
deleted text begin
(3) an amount equal to the present value of the participant's benefit if the retirement plan
is a defined benefit plan that pays a monthly annuity.
deleted text end
deleted text begin
(c) "Individual retirement account" means an account that satisfies the requirements of
section 408(a) of the Internal Revenue Code which is established by an officer of the relief
association in the name of the participant or other benefit recipient at a financial institution
insured federally or by an approved credit union guaranty corporation.
deleted text end
deleted text begin (d)deleted text end new text begin (a)new text end If the board of trustees cannot locate a participant or other benefit recipient, the
board of trustees deleted text begin shalldeleted text end new text begin mustnew text end make a diligent effort to obtain a current address or other contact
information as follows:
(1) send a notice to the address on file for the participant or other benefit recipient using
certified mail;
(2) check with the Minnesota State Fire Department Association, the municipality, and
any other employer of the participant;
(3) check with the participant's designated beneficiary on file with the relief association;
and
(4) use one or more of the Internet search tools that are free of charge.
deleted text begin
(e) The board of trustees shall
deleted text end
new text begin
(b) The board of trustees must dispose of the retirement
benefit of a participant or other benefit recipient under clause (1) or (2) if the board of
trustees is unable to locate the participant or other benefit recipient after taking the actions
described in paragraph (a) or the participant or other benefit recipient does not make an
election of a distribution or direct rollover under subdivision 8, paragraph (b), or an annuity
or lump sum distribution or direct rollover under subdivision 8, paragraph (c). The board
of trustees must:
new text end
new text begin (1)new text end transfer the retirement benefit to an individual retirement account new text begin that satisfies the
requirements of section 408(a) of the Internal Revenue Code and is established by an officer
of the relief association in the name of the participant or other benefit recipient at a federally
insured financial institution; new text end or
new text begin (2)new text end consider the retirement benefit abandoned and deposit funds in the amount of the
retirement benefit with the commissioner of commerce under chapter 345, notwithstanding
any laws to the contrary, including section 345.381deleted text begin , if the board of trustees is unable to
locate the participant or other benefit recipient after taking the actions described in paragraph
(d) or the participant or other benefit recipient does not elect to receive or rollover a
retirement benefit to which the participant or other benefit recipient is entitleddeleted text end .
new text begin
(c) For the purpose of this subdivision, a retirement benefit that is a monthly pension or
annuity may be disposed of under paragraph (b) by converting the monthly pension or
annuity to a lump sum that is equal to the present value of the monthly pension or annuity
to which the participant or other benefit recipient is entitled.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 16.
new text begin
TRANSFER OF MAPLE PLAIN FIRE DEPARTMENT RECORDS,
ASSETS, AND LIABILITIES FROM THE STATEWIDE VOLUNTEER
FIREFIGHTER PLAN.
new text end
new text begin
(a) No later than 60 days after the effective date, the executive director of the Public
Employees Retirement Plan must transfer the records, assets, and liabilities of the Maple
Plain fire department to the Maple Plain Fire Relief Association.
new text end
new text begin
(b) Minnesota Statutes, section 353G.17, applies to the transfer under paragraph (a)
except as modified by clauses (1) to (9) of this paragraph.
new text end
new text begin
(1) Subdivision 1, paragraph (b), clause (3), does not apply.
new text end
new text begin
(2) Subdivision 1, paragraphs (c) and (d), do not apply.
new text end
new text begin
(3) Subdivision 2, paragraph (a), clause (2), does not apply.
new text end
new text begin
(4) Subdivision 2, paragraphs (b) and (c), do not apply.
new text end
new text begin
(5) Subdivision 3, paragraph (a), is revised to require that the vote be conducted by the
board of trustees of the Maple Plain Fire Relief Association, rather than the executive director
of the Public Employees Retirement Association, and that the vote by members of the Maple
Plain Fire Relief Association must occur no earlier than four months before the effective
date and no later than 30 days after the effective date.
new text end
new text begin
(6) Subdivision 3, paragraphs (c) to (e), do not apply.
new text end
new text begin
(7) Subdivision 4, paragraph (a), is revised to require the Statewide Volunteer Firefighter
Plan to make the transfer described in paragraph (a) upon completion of the actions required
under Minnesota Statutes, section 353G.17, subdivisions 1 to 3, as revised by this section,
and to replace "as of the effective date identified in the notice under subdivision 1," with
"no later than 60 days after the effective date."
new text end
new text begin
(8) Subdivision 5, paragraph (d), is revised to add at the end of paragraph (d): "For the
purpose of this section, the "value" of a firefighter's benefit means the amount determined
by multiplying the firefighter's years of service by the benefit level applicable to the
firefighter as determined under Minnesota Statutes, section 424B.22."
new text end
new text begin
(9) Subdivision 6 is revised to delete the phrase "or the requirements of subdivision 2,
paragraph (b), are not met."
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 17. new text begin PENSION PAYMENTS AND PLAN TERMINATION.
new text end
new text begin
Upon completion of the transfer of records, assets, and liabilities under section 16 to the
Maple Plain Fire Relief Association, the Maple Plain Fire Relief Association must make
pension benefit payments in accordance with Minnesota Statutes, section 424B.22, as
amended and in effect on the date payments are made, and subsequently terminate and
dissolve the relief association in accordance with Minnesota law.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 18. new text begin PAYMENT OF SUPPLEMENTAL BENEFITS.
new text end
new text begin
(a) The city of Maple Plain is authorized, but not required, to pay supplemental benefits
due under Minnesota Statutes, section 424A.10, to each qualified recipient or survivor, as
defined in Minnesota Statutes, section 424A.10, of the Maple Plain Fire Relief Association.
If the city of Maple Plain pays supplemental benefits, the city is eligible for reimbursement
from the commissioner of revenue under Minnesota Statutes, section 424A.10, for the
amount of supplemental benefits paid.
new text end
new text begin
(b) If the city of Maple Plain pays supplemental benefits due under Minnesota Statutes,
section 424A.10, as authorized by paragraph (a), the Maple Plain Fire Relief Association
is deemed to have satisfied the requirement under Minnesota Statutes, section 424A.10, to
pay supplemental benefits.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2024, section 424A.01, subdivision 6,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
ARTICLE 8
ALL PUBLIC PENSION PLANS
Section 1.
Minnesota Statutes 2024, section 43A.346, subdivision 8, is amended to read:
Subd. 8.
deleted text begin Nodeleted text end Service creditnew text begin ; contributionsnew text end .
new text begin (a) new text end Notwithstanding any law to the contrary,
a person may not earn service credit in the Minnesota State Retirement System or the Public
Employees Retirement Association for employment covered under this sectiondeleted text begin , and employer
contributions and payroll deductions for the retirement fund must not be made based on
earnings of a person working under this sectiondeleted text end .
new text begin
(b) A person employed in a postretirement option position must not be required to make
payroll deduction contributions to the Minnesota State Retirement System or the Public
Employees Retirement Association during the period of postretirement option employment.
new text end
new text begin
(c) The employer of a person in a postretirement option position who would otherwise
be covered by the general state employees retirement plan of the Minnesota State Retirement
System must make employer contributions to the general state employees retirement fund
as specified in section 352.04, subdivision 3, during the period of postretirement option
employment. The employer of the person in a postretirement option position who would
otherwise be covered by the general employees retirement plan of the Public Employees
Retirement Association must make employer and additional employer contributions to the
general employees retirement fund as specified in section 353.27, subdivisions 3 and 3a,
during the period of postretirement option employment.
new text end
new text begin (d) new text end No change deleted text begin shalldeleted text end new text begin maynew text end be made to a monthly annuity or retirement allowance based
on employment under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective on the first day of the payroll period
beginning on or after January 1, 2027.
new text end
Sec. 2.
Minnesota Statutes 2024, section 43A.346, subdivision 10, is amended to read:
Subd. 10.
Subsequent employment.
If a person has been in a postretirement option
position and accepts any other position in state or Metropolitan Council-paid service, in the
subsequent state or Metropolitan Council-paid employment the person may not earn service
credit in the Minnesota State Retirement System or Public Employees Retirement
Association, no deleted text begin employer contributions ordeleted text end payroll deductions for the retirement fund deleted text begin shalldeleted text end new text begin
maynew text end be made, and the provisions of section 352.115, subdivision 10, or deleted text begin sectiondeleted text end 353.37,
deleted text begin shalldeleted text end apply.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective on the first day of the payroll period
beginning on or after January 1, 2027.
new text end
Sec. 3.
Minnesota Statutes 2024, section 352.01, subdivision 13, is amended to read:
Subd. 13.
Salary.
(a) Subject to the limitations of section 356.611, "salary" means wages,
or other periodic compensation, paid to an employee before deductions for deferred
compensation, supplemental retirement plans, or other voluntary salary reduction programs.
(b) deleted text begin "deleted text end Salarydeleted text begin "deleted text end does not include:
(1) lump-sum sick leave payments;
(2) severance payments;
(3) lump-sum annual leave payments and overtime payments made at the time of
separation from state service;
(4) payments in lieu of any employer-paid group insurance coverage, including the
difference between single and family rates that may be paid to an employee with single
coverage;
(5) payments made as an employer-paid fringe benefit;
(6) workers' compensation payments;
(7) employer contributions to a deferred compensation or tax-sheltered annuity program;deleted text begin
and
deleted text end
(8) amounts contributed under a benevolent vacation and sick leave donation programdeleted text begin .deleted text end new text begin ;
and
new text end
new text begin
(9) payments from the family and medical benefit insurance account for Minnesota paid
leave under chapter 268B.
new text end
(c) Amounts paid to an employee by the employer through a grievance proceeding or a
legal settlement are salary only if the grievance or settlement agreement is received by the
executive director no fewer than 14 days before payment is made and the executive director
determines that:
(1) the grievance or settlement agreement describes with sufficient specificity the period
or periods of time worked or not worked by the employee for which the amounts are
compensation; and
(2) the amounts are salary as defined in paragraph (a) and the determination is consistent
with prior determinations.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from January 1, 2026.
new text end
Sec. 4.
Minnesota Statutes 2024, section 352.115, subdivision 10, is amended to read:
Subd. 10.
Reemployment of annuitant.
(a) Except for salary or wages received as a
temporary employee of the legislature during a legislative session, if any retired employee
again becomes entitled to receive salary or wages from any employer who employs state
employees as that term is defined in section 352.01, subdivision 2, in a position covered by
this chapter, the annuity or retirement allowance must cease the first of the month following
the month that the retired employee has earned an amount equal to the annual maximum
earnings allowable for that age for the continued receipt of full benefit amounts monthly
under the federal old age, survivors, and disability insurance program as set by the secretary
of health and human services under United States Code, title 42, section 403, in any calendar
year. If the retired employee has not yet reached the minimum age for the receipt of Social
Security benefits, the maximum earnings for the retired employee are equal to the annual
maximum earnings allowable for the minimum age for the receipt of Social Security benefits.
(b) The balance of the annual retirement annuity after cessation must be handled or
disposed of as provided in section 356.47.
(c) The annuity must be resumed the first of the month following the month that state
service ends, or, if the retired employee is still employed at the beginning of the next calendar
year, at the beginning of that calendar year, and payment must again end when the retired
employee has earned the applicable reemployment earnings maximum specified in this
subdivision. If the retired employee is granted a sick leave without pay, but not otherwise,
the annuity or retirement allowance must be resumed during the period of sick leave.
(d) No payroll deductions for the retirement fund may be made from the earnings of a
reemployed retired employee.
(e) No change may be made in the monthly amount of an annuity or retirement allowance
because of the reemployment of an annuitant.
(f) If a reemployed annuitant whose annuity is suspended under paragraph (a) is having
insurance premium amounts withheld under section 356.87, subdivision 2, insurance premium
amounts must continue to be withheld and transferred from the suspended portion of the
annuity. The balance of the annual retirement annuity after cessation, after deduction of the
insurance premium amounts, must be treated as specified in paragraph (b).
(g) If a reemployed annuitant whose annuity is suspended under paragraph (a) has a
former spouse receiving a portion of the annuity allowable under section 518.58, subdivision
1, the portion payable to the former spouse must continue to be paid.
new text begin
(h) During the period of reemployment, the employer of a reemployed annuitant must
make employer contributions. If the reemployed annuitant is working in a position that
would otherwise be covered by the general state employees retirement plan, the employer
must make employer contributions as specified in section 352.04, subdivision 3. If the
reemployed annuitant is working in a position that would otherwise be covered by the
correctional state employees retirement plan, the employer must make employer and
supplemental contributions as specified in section 352.92, subdivisions 2 and 2a.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective on the first day of the payroll period
beginning on or after January 1, 2027.
new text end
Sec. 5.
Minnesota Statutes 2024, section 352.1155, subdivision 3, is amended to read:
Subd. 3.
Service credit deleted text begin prohibitiondeleted text end new text begin ; contributionsnew text end .
new text begin (a) new text end Notwithstanding any law to the
contrary, a person eligible under this section may not, based on employment to which the
waiver in this section applies, earn further service credit in a Minnesota public defined
benefit plan and is not eligible to participate in a Minnesota public defined contribution
plan, other than a firefighter relief association governed by chapter 424A or the statewide
volunteer firefighter plan governed by chapter 353G. deleted text begin No employer or employee contribution
to any of these plans may be made on behalf of such a person.
deleted text end
new text begin
(b) A person eligible under this section must not be required to make employee
contributions as specified in section 352.04, subdivision 2, during the period of
reemployment.
new text end
new text begin
(c) The employer of a person eligible under this section must make employer contributions
as specified in section 352.04, subdivision 3, during the period of the person's reemployment.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective on the first day of the payroll period
beginning on or after January 1, 2027.
new text end
Sec. 6.
Minnesota Statutes 2024, section 353.01, subdivision 10, is amended to read:
Subd. 10.
Salary.
(a) Subject to the limitations of section 356.611, "salary" means:
(1) the wages or periodic compensation payable to a public employee by the employing
governmental subdivision before:
(i) employee retirement deductions that are designated as picked-up contributions under
section 356.62;
(ii) any employee-elected deductions for deferred compensation, supplemental retirement
plans, or other voluntary salary reduction programs that would have otherwise been available
as a cash payment to the employee; and
(iii) employee deductions for contributions to a supplemental plan or to a governmental
trust established under section 356.24, subdivision 1, clause (7), to save for postretirement
health care expenses, unless otherwise excluded under paragraph (b);
(2) for a public employee who is covered by a supplemental retirement plan under section
356.24, subdivision 1, clause (8), (9), (10), or (12), the employer contributions to the
applicable supplemental retirement plan when an agreement between the parties establishes
that the contributions will either result in a mandatory reduction of employees' wages through
payroll withholdings, or be made in lieu of an amount that would otherwise be paid as
wages;
(3) a payment from a public employer through a grievance proceeding, settlement, or
court order that is attached to a specific earnings period in which the employee's regular
salary was not earned or paid to the member due to a suspension or a period of involuntary
termination that is not a wrongful discharge under section 356.50; provided the amount is
not less than the equivalent of the average of the hourly base salary rate in effect during the
last six months of allowable service prior to the suspension or period of involuntary
termination, plus any applicable increases awarded during the period that would have been
paid under a collective bargaining agreement or personnel policy but for the suspension or
involuntary termination, multiplied by the average number of regular hours for which the
employee was compensated during the six months of allowable service prior to the suspension
or period of involuntary termination, but not to exceed the compensation that the public
employee would have earned if regularly employed during the applicable period;
(4) compensation paid during an authorized leave of absencedeleted text begin , other than an authorized
medical leave of absence, as long as the compensation paid during a pay period is not less
than the lesser of:deleted text end new text begin ; and
new text end
deleted text begin
(i) the product of the average hourly base salary rate in effect during the six months of
allowable service immediately preceding the leave, multiplied by the average number of
regular hours for which the employee was compensated each pay period during the six
months of allowable service immediately preceding the leave of absence; or
deleted text end
deleted text begin
(ii) compensation equal to the value of the employee's total available accrued leave
hours;
deleted text end
deleted text begin
(5) compensation paid during an authorized medical leave of absence, other than a
workers' compensation leave, as long as the compensation paid during a pay period is not
less than the lesser of:
deleted text end
deleted text begin
(i) the product of one-half and the average hourly base salary rate in effect during the
six months of allowable service immediately preceding the leave of absence; or
deleted text end
deleted text begin
(ii) compensation equal to the value of the employee's total available accrued leave
hours; and
deleted text end
deleted text begin (6)deleted text end new text begin (5)new text end for a public employee who receives performance or merit bonus payment under
a written compensation plan, policy, or collective bargaining agreement in addition to regular
salary or in lieu of regular salary increases, the compensation paid to the employee for
attaining or exceeding performance goals, duties, or measures during a specified period of
employment.
(b) Salary does not mean:
(1) fees paid to district court reporters;
(2) unused annual leave, vacation, or sick leave payments, in the form of lump-sum or
periodic payments;
(3) for the donor, payment to another person of the value of hours donated under a
benevolent vacation, personal, or sick leave donation program;
(4) any form of severance or retirement incentive payments;
(5) an allowance payment or per diem payments for or reimbursement of expenses;
(6) lump-sum settlements not attached to a specific earnings period;
(7) workers' compensation paymentsnew text begin , payments from the family and medical benefit
insurance account for Minnesota paid leave under chapter 268B,new text end or disability insurance
payments, including payments from employer self-insurance arrangements;
(8) employer-paid amounts used by an employee toward the cost of insurance coverage,
flexible spending accounts, cafeteria plans, health care expense accounts, day care expenses,
or any payments in lieu of any employer-paid group insurance coverage, including the
difference between single and family rates that may be paid to a member with single coverage
and certain amounts determined by the executive director to be ineligible;
(9) employer-paid fringe benefits, includingdeleted text begin ,deleted text end but not limited to:
(i) employer-paid premiums or supplemental contributions for employees for all types
of insurance;
(ii) membership dues or fees for the use of fitness or recreational facilities;
(iii) incentive payments or cash awards relating to a wellness program;
(iv) the value of any nonmonetary benefits;
(v) any form of payment made in lieu of an employer-paid fringe benefit;
(vi) an employer-paid amount made to a deferred compensation or tax-sheltered annuity
program; and
(vii) any amount paid by the employer as a supplement to salary, either as a lump-sum
amount or a fixed or matching amount paid on a recurring basis, that is not available to the
employee as cash;
(10) the amount equal to that which the employing governmental subdivision would
otherwise pay toward single or family insurance coverage for a covered employee when,
through a contract or agreement with some but not all employees, the employer:
(i) discontinues, or for new hires does not provide, payment toward the cost of the
employee's selected insurance coverages under a group plan offered by the employer;
(ii) makes the employee solely responsible for all contributions toward the cost of the
employee's selected insurance coverages under a group plan offered by the employer,
including any amount the employer makes toward other employees' selected insurance
coverages under a group plan offered by the employer; and
(iii) provides increased salary rates for employees who do not have any employer-paid
group insurance coverages;
(11) except as provided in section deleted text begin 353.86 ordeleted text end 353.87, compensation of any kind paid to
volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision
35 or 36;
(12) the amount of compensation that exceeds the limitation provided in section 356.611;
(13) amounts paid by a federal or state grant for which the grant specifically prohibits
grant proceeds from being used to make pension plan contributions, unless the contributions
to the plan are made from sources other than the federal or state grant; and
(14) bonus pay that is not performance or merit pay under paragraph (a), clause deleted text begin (6)deleted text end new text begin (5)new text end .
(c) Amounts, other than those provided under paragraph (a), clause (3), provided to an
employee by the employer through a grievance proceeding, a court order, or a legal settlement
are salary only if the settlement or court order is reviewed by the executive director and the
amounts are determined by the executive director to be consistent with paragraph (a) and
prior determinations.
new text begin EFFECTIVE DATE. new text end
new text begin
The amendments to paragraphs (a), clauses (4) and (5), and (b),
clause (11), are effective July 1, 2026. The amendment to paragraph (b), clause (7), is
effective retroactively from January 1, 2026.
new text end
Sec. 7.
Minnesota Statutes 2024, section 353.37, subdivision 5, is amended to read:
Subd. 5.
Effect on annuitynew text begin ; contributionsnew text end .
new text begin (a) new text end Except as provided under this section,
public service performed by an annuitant described in subdivision 1, paragraph (a),
subsequent to retirement from the general employees retirement plan, the public employees
police and fire retirement plan, or the local government correctional employees retirement
plan does not increase or decrease the amount of an annuity.
new text begin (b)new text end The annuitant deleted text begin shalldeleted text end new text begin mustnew text end not make any further contributions to a defined benefit plan
administered by the association by reason of this subsequent public service.
new text begin
(c) During the period of reemployment, the employer of a reemployed annuitant must
make employer contributions. If the reemployed annuitant is working in a position that
would otherwise be covered by the general employees retirement plan, the employer must
make employer and additional employer contributions as specified in section 353.27,
subdivisions 3 and 3a. If the reemployed annuitant is working in a position that would
otherwise be covered by the public employees police and fire retirement plan, the employer
must make employer contributions as specified in section 353.65, subdivision 3. If the
reemployed annuitant is working in a position that would otherwise be covered by the local
government correctional service retirement plan, the employer must make employer
contributions as specified in section 353E.03, subdivision 2.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 8.
Minnesota Statutes 2024, section 353.371, subdivision 6, is amended to read:
Subd. 6.
deleted text begin Nodeleted text end Service creditnew text begin ; contributionsnew text end .
(a) Notwithstanding any law to the contrary,
a person may not earn allowable service in the general employees retirement plan of the
Public Employees Retirement Association for employment covered under this sectiondeleted text begin , and
employer contributions anddeleted text end new text begin .
new text end
new text begin (b)new text end Payroll deductions for the retirement fund must not be made based on earnings of a
person working under an agreement covered by this section.
new text begin
(c) The employer of a person working under an agreement covered by this section must
make employer and additional employer contributions to the fund as specified in section
353.27, subdivisions 3 and 3a, during the term of employment under the phased retirement
agreement or renewed phased retirement agreement.
new text end
new text begin (d) new text end No change may be made to a monthly annuity or retirement allowance based on
employment under this section.
deleted text begin (b)deleted text end new text begin (e)new text end The governmental subdivision deleted text begin shalldeleted text end new text begin mustnew text end report to the executive director the
salary earned by an employee in a phased retirement position. The report must include the
number of compensated hours the employee worked and must be made on a pay period
basis in a manner prescribed by the executive director. Reports must be submitted no later
than 14 calendar days following the last day of each pay period.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 9.
Minnesota Statutes 2024, section 353.371, subdivision 7, is amended to read:
Subd. 7.
Termination and subsequent employment.
(a) Upon termination of
employment under a phased retirement agreement, the governmental subdivision and
employee must inform the executive director, in a manner prescribed by the executive
director, of the effective date of the employee's termination of public service. The termination
from public service must meet the termination and length of separation requirements under
section 353.01, subdivisions 11a and 28.
(b) If a person previously employed under a phased retirement agreement subsequently
accepts employment with any other governmental subdivision, the person may not earn
allowable service in the general employees retirement plan of the Public Employees
Retirement Association, no deleted text begin employer contributions ordeleted text end payroll deductions for the retirement
fund may be made, and the provisions of section 353.37 apply to the subsequent employment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 10.
Minnesota Statutes 2024, section 354.05, subdivision 35, is amended to read:
Subd. 35.
Salary.
(a) Subject to the limitations of section 356.611, "salary" means the
periodic compensation, upon which member contributions are required before deductions
for deferred compensation, supplemental retirement plans, or other voluntary salary reduction
programs.
(b) deleted text begin "deleted text end Salarydeleted text begin "deleted text end does not mean:
(1) lump-sum annual leave payments;
(2) lump-sum wellness and sick leave payments;
(3) employer-paid amounts used by an employee toward the cost of insurance coverage,
employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health care
expense accounts, day care expenses, or any payments in lieu of any employer-paid group
insurance coverage, including the difference between single and family rates that may be
paid to a member with single coverage and certain amounts determined by the executive
director to be ineligible;
(4) any form of payment made in lieu of any other employer-paid fringe benefit or
expense;
(5) any form of severance payments;
(6) workers' compensation payments;
(7) disability insurance payments, including self-insured disability payments;
(8) payments to school principals and all other administrators for services that are in
addition to the normal work year contract if these additional services are performed on an
extended duty day, Saturday, Sunday, holiday, annual leave day, sick leave day, or any
other nonduty day;
(9) payments under section 356.24, subdivision 1, clause (4); deleted text begin and
deleted text end
(10) payments made under section 122A.40, subdivision 12, except for payments for
sick leave that are accumulated under the provisions of a uniform school district policy that
applies equally to all similarly situated persons in the districtdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(11) payments from the family and medical benefit insurance account for Minnesota
paid leave under chapter 268B.
new text end
(c) Amounts provided to an employee by the employer through a grievance proceeding
or a legal settlement are salary only if the settlement is reviewed by the executive director
and the amounts are determined by the executive director to be consistent with paragraph
(a) and prior determinations.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from January 1, 2026.
new text end
Sec. 11.
Minnesota Statutes 2024, section 354.44, subdivision 5, is amended to read:
Subd. 5.
Resumption of teaching service after retirement.
(a) Any person who retired
under the provisions of this chapter and has thereafter resumed teaching in any employer
unit to which this chapter applies is eligible to continue to receive payments in accordance
with the annuity except that all or a portion of the annuity payments must be deferred during
the calendar year immediately following the fiscal year in which the person's salary from
the teaching service is in an amount greater than $46,000. The amount of the annuity deferral
is one-half of the salary amount in excess of $46,000 and must be deducted from the annuity
payable for the calendar year immediately following the fiscal year in which the excess
amount was earned.
(b) If the person is retired for only a fractional part of the fiscal year during the initial
year of retirement, the maximum reemployment salary exempt from triggering a deferral
as specified in this subdivision must be prorated for that fiscal year.
(c) After a person has reached the Social Security normal retirement age, no deferral
requirement is applicable regardless of the amount of salary.
(d) The amount of the retirement annuity deferral must be handled or disposed of as
provided in section 356.47.
(e) For deleted text begin the purposedeleted text end new text begin purposesnew text end of this subdivision, salary from teaching service includes
all salary or income earned as a teacher as defined in section 354.05, subdivision 2, paragraph
(a), clause (1). Salary from teaching service also includes, but is not limited to:
(1) all income for services performed as a consultant, independent contractor, or
third-party supplier, or as an employee of a consultant, independent contractor, or third-party
supplier, to an employer unit covered by the provisions of this chapter; and
(2) the greater of either the income received or an amount based on the rate paid with
respect to an administrative position, consultant, independent contractor, or third-party
supplier, or as an employee of a consultant, independent contractor, or third-party supplier,
in an employer unit with approximately the same number of pupils and at the same level as
the position occupied by the person who resumes teaching service.
(f) Notwithstanding other paragraphs of this subdivision, if the reemployed annuitant
has a former spouse receiving a portion of the annuity under section 518.58, subdivision 1,
the portion payable to the former spouse must not be deferred.
new text begin
(g) During the period of reemployment, the employer of a reemployed annuitant must
make regular and, if applicable, additional employer contributions as specified in section
354.42, subdivision 3.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective on the first day of the payroll period
beginning on or after July 1, 2026.
new text end
Sec. 12.
Minnesota Statutes 2024, section 354.444, subdivision 5, is amended to read:
Subd. 5.
deleted text begin Nodeleted text end Service credit deleted text begin or contributiondeleted text end new text begin ; contributionsnew text end .
Notwithstanding any law
to the contrarydeleted text begin ,deleted text end new text begin :
new text end
new text begin (1)new text end an eligible person under this section may not, based on employment to which this
section applies, contribute to or earn further service credit in the deleted text begin Teachers Retirementdeleted text end
associationdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(2) the employer of an eligible person under this section must make regular and, if
applicable, additional employer contributions as specified in section 354.42, subdivision 3,
during the period of employment to which this section applies.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective on the first day of the payroll period
beginning on or after July 1, 2026.
new text end
Sec. 13.
Minnesota Statutes 2024, section 354.445, is amended to read:
354.445 NO ANNUITY REDUCTION.
(a) The annuity reduction provisions of section 354.44, subdivision 5, do not apply to a
person who:
(1) retires from the Minnesota State Colleges and Universities system with at least ten
years of combined service credit in a system under the jurisdiction of the Board of Trustees
of the Minnesota State Colleges and Universities;
(2) was employed on a full-time basis immediately preceding retirement as a faculty
member or as an unclassified administrator in that system;
(3) was not a recipient of an early retirement incentive under section 136F.481;
(4) begins drawing an annuity from the Teachers Retirement Association; and
(5) returns to work on not less than a one-third time basis and not more than a two-thirds
time basis in the system from which the person retired under an agreement in which the
person may not earn a salary of more than $62,000 in a fiscal year through employment
after retirement in the system from which the person retired.
(b) Initial participation, the amount of time worked, and the duration of participation
under this section must be mutually agreed upon by the president of the institution where
the person returns to work and the employee. The president may require up to one-year
notice of intent to participate in the program as a condition of participation under this section.
The president shall determine the time of year the employee shall work. The employer or
the president may not require a person to waive any rights under a collective bargaining
agreement as a condition of participation under this section.
(c) Notwithstanding any law to the contrary, a person eligible under paragraphs (a) and
(b) may not, based on employment to which the waiver in this section applies, earn further
service credit in a Minnesota public defined benefit plan and is not eligible to participate
in a Minnesota public defined contribution plan, other than a deleted text begin volunteer firedeleted text end new text begin firefighter relief
associationnew text end plan governed by chapter 424Anew text begin or the statewide volunteer firefighter plan
governed by chapter 353Gnew text end . deleted text begin No employer or employee contribution to any of these plans
may be made on behalf of such a person.
deleted text end
new text begin
(d) A person eligible under paragraphs (a) and (b) must not be required to make employee
contributions as specified in section 354.42, subdivision 2, during the period of
reemployment.
new text end
new text begin
(e) The employer of a person eligible under paragraphs (a) and (b) must make employer
contributions as specified in section 354.42, subdivision 3, during the period of the person's
reemployment.
new text end
deleted text begin (d)deleted text end new text begin (f)new text end For a person eligible under paragraphs (a) and (b) who earns more than $62,000
in a fiscal year through employment after retirement due to employment by the Minnesota
State Colleges and Universities system, the annuity reduction provisions of section 354.44,
subdivision 5, apply only to income over $62,000.
deleted text begin (e)deleted text end new text begin (g)new text end A person who returns to work under this section is a member of the appropriate
bargaining unit and is covered by the appropriate collective bargaining contract. Except as
provided in this section, the person's coverage is subject to any part of the contract limiting
rights of part-time employees.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective on the first day of the payroll period
beginning on or after July 1, 2026.
new text end
Sec. 14.
Minnesota Statutes 2024, section 354A.011, subdivision 24, is amended to read:
Subd. 24.
Salary; covered salary.
(a) Subject to the limitations of section 356.611,
"salary" or "covered salary" means the entire compensation, upon which member
contributions are required and made, that is paid to a teacher before deductions for deferred
compensation, supplemental retirement plans, or other voluntary salary reduction programs.
(b) deleted text begin "deleted text end Salarydeleted text begin "deleted text end does not mean:
(1) lump-sum annual leave payments;
(2) lump-sum wellness and sick leave payments;
(3) employer-paid amounts used by an employee toward the cost of insurance coverage,
employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health care
expense accounts, day care expenses, or any payments in lieu of any employer-paid group
insurance coverage, including the difference between single and family rates that may be
paid to a member with single coverage, and certain amounts determined by the executive
secretary or director to be ineligible;
(4) any form of payment that is made in lieu of any other employer-paid fringe benefit
or expense;
(5) any form of severance payments;
(6) workers' compensation payments;
(7) disability insurance payments, including self-insured disability payments;
(8) payments to school principals and all other administrators for services that are in
addition to the normal work year contract if these additional services are performed on an
extended duty day, Saturday, Sunday, holiday, annual leave day, sick leave day, or any
other nonduty day;
(9) payments under section 356.24, subdivision 1, clause (4)deleted text begin (ii)deleted text end ; deleted text begin and
deleted text end
(10) payments made under section 122A.40, subdivision 12, except for payments for
sick leave that are accumulated under the provisions of a uniform school district policy that
applies equally to all similarly situated persons in the districtdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(11) payments from the family and medical benefit insurance account for Minnesota
paid leave under chapter 268B.
new text end
(c) Amounts provided to an employee by the employer through a grievance proceeding
or a legal settlement are salary only if the settlement is reviewed by the executive director
and the amounts are determined by the executive director to be consistent with paragraph
(a) and prior determinations.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from January 1, 2026.
new text end
Sec. 15.
Minnesota Statutes 2024, section 354A.095, is amended to read:
354A.095 PARENTAL AND MATERNITY LEAVE.
Basic or coordinated members of the St. Paul Teachers Retirement Fund Association
who are deleted text begin granteddeleted text end new text begin on an authorizednew text end parental or maternity leave of absence deleted text begin by the employing
authority,deleted text end are entitled to obtain service credit not to exceed one year for the period of leave
upon payment to the fund by the end of the fiscal year following the fiscal year in which
the leave of absence terminated. The amount of the payment must include the total required
employee and employer contributions for the period of leave prescribed in section 354A.12.
Payment must be based on the member's average monthly salary rate upon return to teaching
service, and is payable without interest. Payment must be accompanied by a certified or
otherwise adequate copy of the resolution or action of the employing authority granting or
approving the leave.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from January 1, 2026.
new text end
Sec. 16.
Minnesota Statutes 2024, section 356.30, subdivision 1, is amended to read:
Subdivision 1.
Eligibility; computation of annuity.
(a) Notwithstanding any provisions
of the laws governing the covered retirement plans listed in subdivision 3new text begin and except as
provided in subdivision 1anew text end , a person may elect to receive, upon retirement, a retirement
annuity from each covered retirement plan, subject to the provisions of paragraph (b), if the
person has:
(1) allowable service in any two or more of the covered plans;
(2) at least one-half year of allowable service in each covered plan, based on the allowable
service in each plan;
(3) total allowable service that equals or exceeds the longest service credit vesting
requirement of the applicable retirement plan; and
(4) not begun to receive an annuity from any covered plan or made application for
benefits from each applicable plan and the retirement annuity effective dates of each plan
are within a one-year period.
(b) If all requirements in paragraph (a) have been satisfied, the retirement annuity from
each plan must be based upon the allowable service, accrual rates, and average salary in the
applicable plan except as further specified or modified in the following clauses:
(1) the laws governing annuities must be the law in effect on the date of termination
from the last period of public service under a covered retirement plan with which the person
earned a minimum of one-half year of allowable service credit during that employment;
(2) the average salary used to calculate the annuity for each formula plan must be based
on the employee's highest five successive years of covered salary during the entire service
in covered plans;
(3) the accrual rates under each plan must be the percentages prescribed by each plan's
formula in effect for the respective years of allowable service from one plan to the next,
recognizing all previous allowable service with the other covered plans;
(4) the allowable service in all the covered plans must be combined in determining
eligibility for and the application of each plan's provisions with respect to reduction in the
annuity amount for retirement prior to normal retirement age; and
(5) the annuity amount payable for any allowable service under a nonformula plan that
is a covered plan must not be affected, but such service and covered salary must be used in
the above calculation.
(c) If a person eligible for an annuity under paragraph (a) from each covered plan
terminates all public service, the deferred annuity must be augmented from the date of
termination until the earlier of:
(1) the effective date of retirement; or
(2) December 31, 2018, for the Minnesota State Retirement System and the Public
Employees Retirement Association or June 30, 2019, for the Teachers Retirement Association
and the St. Paul Teachers Retirement Association.
A deferred annuity must not be augmented after the applicable dates under clause (2).
The appropriate rate of augmentation is the rate in effect on the date on which the person
entered into public employment and subsequently adjusted according to the laws governing
each covered plan, as applicable.
(d) This section does not apply to any person whose final termination from the last public
service under a covered plan was before May 1, 1975.
(e) For the purpose of computing annuities under this section:
(1) the judges retirement fund accrual rate must not exceed 3.2 percent per year of service
for any year of service or fraction thereof;
(2) the public employees police and fire plan and the State Patrol retirement plan accrual
rate must not exceed 3.0 percent per year of service for any year of service or fraction
thereof;
(3) the legislators retirement plan accrual rate must not exceed 2.5 percent, but this limit
does not apply to the adjustment provided under section 3A.02, subdivision 1, paragraph
(c); and
(4) any other covered plan's accrual rate must not exceed 2.7 percent per year of service
for any year of service or fraction thereof.
(f) Any period of time for which a person has credit in more than one of the covered
plans must be used only once for the purpose of determining total allowable service.
(g) If the period of duplicated service credit is more than one-half year, or the person
has credit for more than one-half year, with each of the plans, each plan must apply its
formula to a prorated service credit for the period of duplicated service based on a fraction
of the salary on which deductions were paid to that fund for the period divided by the total
salary on which deductions were paid to all plans for the period.
(h) If the period of duplicated service credit is less than one-half year, or when added
to other service credit with that plan is less than one-half year, the service credit must be
ignored and a refund of contributions made to the person in accord with that plan's refund
provisions.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 17.
Minnesota Statutes 2024, section 356.30, is amended by adding a subdivision to
read:
new text begin Subd. 1a. new text end
new text begin Exceptions for certain covered plans. new text end
new text begin
(a) A person meets the requirement
of subdivision 1, paragraph (a), clause (1), and does not need to meet the requirements of
subdivision 1, paragraph (a), clauses (2) and (4), to calculate a retirement annuity pursuant
to this section if the person is eligible to receive retirement annuities from:
new text end
new text begin
(1) both of the covered plans specified in subdivision 3, clauses (1) and (2);
new text end
new text begin
(2) both of the covered plans specified in subdivision 3, clauses (1) and (13); or
new text end
new text begin
(3) the covered plan specified in subdivision 3, clause (12), for allowable service earned
under the general employees retirement plan and the local government probation and
telecommunicator retirement plan if the person was transferred from the general employees
retirement plan to the local government probation and telecommunicator retirement plan
on January 1, 2027.
new text end
new text begin
(b) This paragraph applies to a person who is eligible to receive retirement annuities
from the covered plans specified in subdivision 3, clauses (1) and (2), and any other covered
plan and who elects to calculate the retirement annuities as follows:
new text end
new text begin
(1) for the retirement annuities from the covered plans specified in subdivision 3, clauses
(1) and (2), the person does not need to meet the requirements of subdivision 1, paragraph
(a), clauses (2) and (4), and may begin to receive one of the annuities and defer receiving
the other annuity; and
new text end
new text begin
(2) for the retirement annuity from another covered plan, the person is entitled to have
the retirement annuity from the other covered plan calculated under this section if the person
meets the requirements of subdivision 1, paragraph (a), clauses (2) and (4), and the person
has not begun to receive an annuity from the other covered plan or made application for
benefits from the other covered plan, and the retirement annuity effective dates of either of
the covered plans specified in subdivision 3, clauses (1) and (2), and the other covered plan
are within a one-year period.
new text end
new text begin
(c) This paragraph applies to a person who is eligible to receive retirement annuities
from the covered plans specified in subdivision 3, clauses (1) and (13), and any other covered
plan and who elects to calculate the retirement annuities as follows:
new text end
new text begin
(1) for the retirement annuities from the covered plans specified in subdivision 3, clauses
(1) and (13), the person does not need to meet the requirements of subdivision 1, paragraph
(a), clauses (2) and (4), and may begin to receive one of the annuities and defer receiving
the other annuity; and
new text end
new text begin
(2) for the retirement annuity from another covered plan, the person is entitled to have
the retirement annuity from the other covered plan calculated under this section if the person
meets the requirements of subdivision 1, paragraph (a), clauses (2) and (4), and the person
has not begun to receive an annuity from the other covered plan or made application for
benefits from the other covered plan, and the retirement annuity effective dates of either of
the covered plans specified in subdivision 3, clauses (1) and (13), and the other covered
plan are within a one-year period.
new text end
new text begin
(d) This paragraph applies to a person who is eligible to receive retirement annuities
from the covered plan specified in subdivision 3, clause (12), for allowable service earned
under the general employees retirement plan, the local government probation and
telecommunicator retirement plan, and any other covered plan, and who elects to calculate
the retirement annuities as follows:
new text end
new text begin
(1) for the retirement annuities from the covered plan specified in subdivision 3, clause
(12), the person does not need to meet the requirements of subdivision 1, paragraph (a),
clauses (2) and (4), and may begin to receive a retirement annuity for either the allowable
service under the general employees retirement plan or the local government probation and
telecommunicator retirement plan and defer receiving the other annuity; and
new text end
new text begin
(2) for the retirement annuity from another covered plan, the person is entitled to have
the retirement annuity from the other covered plan calculated under this section if the person
meets the requirements of subdivision 1, paragraph (a), clauses (2) and (4), and the person
has not begun to receive an annuity from the other covered plan or made application for
benefits from the other covered plan, and the retirement annuity effective dates of the covered
plan specified in subdivision 3, clause (12), and the other covered plan are within a one-year
period.
new text end
new text begin
(e) Subdivision 1, paragraph (b), clause (1), does not apply if a person is eligible to
receive retirement annuities from the covered plans as specified in paragraph (a). Instead,
an annuity from a covered plan specified in paragraph (a) must be calculated under the law
in effect on the date of termination of public service covered by the covered plan from which
the annuity is received.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 18.
Minnesota Statutes 2024, section 356.30, subdivision 3, is amended to read:
Subd. 3.
Covered plans.
This section applies to the following retirement plans:
(1) the general state employees retirement plan of the Minnesota State Retirement System,
established under chapter 352;
(2) the correctional state employees retirement plan of the Minnesota State Retirement
System, established under chapter 352;
(3) the unclassified employees retirement program, established under chapter 352D;
(4) the State Patrol retirement plan, established under chapter 352B;
(5) the legislators retirement plan, established under chapter 3A, including constitutional
officers as specified in that chapter;
(6) the general employees retirement plan of the Public Employees Retirement
Association, established under chapter 353;
(7) the public employees police and fire retirement plan of the Public Employees
Retirement Association, established under chapter 353;
(8) the local government correctional service retirement plan of the Public Employees
Retirement Association, established under chapter 353E;
(9) the Teachers Retirement Association, established under chapter 354;
(10) the St. Paul Teachers Retirement Fund Association, established under chapter 354A;
deleted text begin and
deleted text end
(11) the judges retirement fund, established by chapter 490deleted text begin .deleted text end new text begin ;
new text end
new text begin
(12) the local government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H; and
new text end
new text begin
(13) the special coverage subplans, established under section 352.85, 352.86, 352.87,
or 352.88.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 19.
Minnesota Statutes 2024, section 356.461, subdivision 1, is amended to read:
Subdivision 1.
Joint and survivor annuity computation.
new text begin (a) new text end Notwithstanding any
provision of section 356.215, subdivision 8, or 356.415 to the contrary, for purposes of
computing joint and survivor annuitiesnew text begin under each covered retirement plan in subdivision
2new text end , the applicable investment return assumption is 6.5 percentnew text begin unless a different percentage
has been approved or deemed approved under paragraph (b) for the covered retirement plannew text end .
new text begin
(b) A change in the investment return assumption for computing joint and survivor
annuities may be proposed by the governing board of a covered retirement plan. The
assumption may be changed only with the approval of the Legislative Commission on
Pensions and Retirement or after a period of one year has elapsed since the date on which
the proposed assumption change was received by the Legislative Commission on Pensions
and Retirement without commission action.
new text end
new text begin
(c) The executive director of the Legislative Commission on Pensions and Retirement
must update the appendix to the standards for actuarial work whenever a change in the
assumption is approved or deemed approved.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2026.
new text end
ARTICLE 9
MINNESOTA SECURE CHOICE RETIREMENT PROGRAM
Section 1.
Minnesota Statutes 2024, section 187.03, is amended by adding a subdivision
to read:
new text begin Subd. 1a. new text end
new text begin Annual report. new text end
new text begin
"Annual report" means a report on the following:
new text end
new text begin
(1) financial performance of the program and the agency;
new text end
new text begin
(2) program expenses, including costs attributable to the use of outside consultants,
independent contractors, and other persons who are not state employees;
new text end
new text begin
(3) program outcomes;
new text end
new text begin
(4) progress toward savings goals established by the board;
new text end
new text begin
(5) statistics on the number of participating employees, participating employers, and
covered employees who have opted out of participation;
new text end
new text begin
(6) estimated impact of the program on social safety net programs; and
new text end
new text begin
(7) penalties, violations, and disciplinary actions for enforcement.
new text end
Sec. 2.
Minnesota Statutes 2025 Supplement, section 187.03, subdivision 5, is amended
to read:
Subd. 5.
Covered employee.
(a) "Covered employee" means a person who is employed
by a covered employer new text begin or described in section 187.05, subdivision 7, new text end and who satisfies any
other criteria established by the board.
(b) Covered employee does not include:
(1) a person who, on December 31 of the preceding calendar year, was younger than 18
years of age;
(2) a person covered under the federal Railway Labor Act, as amended, United States
Code, title 45, sections 151 et seq.;
(3) a person on whose behalf an employer makes contributions to a Taft-Hartley
multiemployer pension trust fund;
(4) a person employed by the government of the United States, another country, the state
of Minnesota, another state, or any subdivision thereof; or
(5) a person employed on a temporary or seasonal basis for a limited duration, which
the employer determines at the time the person is hired will not extend beyond 180 days.
(c) A person described in paragraph (b), clause (5), may elect to have contributions
deducted from the person's paycheck for remittance to the program, but only if the employer
would otherwise be considered a covered employer.
Sec. 3.
Minnesota Statutes 2025 Supplement, section 187.03, subdivision 6a, is amended
to read:
Subd. 6a.
Enrollment window.
"Enrollment window" meansnew text begin :
new text end
new text begin (1)new text end the period established by the board, according to a phase-in schedule approved under
Laws 2023, chapter 46, section 10, subdivision 1, paragraph (b), that is applicable to each
covered employer and during which the covered employer is first required to deleted text begin provide
information to covered employees anddeleted text end enroll covered employees deleted text begin who do not elect to opt
out of the program.deleted text end new text begin ;
new text end
new text begin
(2) the 21-day period beginning with a covered employee's first day of employment with
a covered employer during which the covered employer is required to enroll the covered
employee; or
new text end
new text begin
(3) the 21-day period beginning on January 1 after the calendar year during which an
employer first becomes a covered employer.
new text end
Sec. 4.
Minnesota Statutes 2024, section 187.03, is amended by adding a subdivision to
read:
new text begin Subd. 15. new text end
new text begin Waiting period. new text end
new text begin
"Waiting period" means the 30-day period that begins on
the day on which a covered employee is enrolled in the program.
new text end
Sec. 5.
Minnesota Statutes 2024, section 187.05, subdivision 1, is amended to read:
Subdivision 1.
Program established.
(a) The board must operate deleted text begin an employeedeleted text end new text begin anew text end
retirement savings program whereby new text begin contributions are made by new text end employee payroll deduction
deleted text begin contributions are transmitteddeleted text end new text begin or, if a covered employee is not employed by a covered
employer, by direct paymentnew text end on an after-tax or pretax basis deleted text begin by covered employersdeleted text end to
individual retirement accounts established under the program.
(b) The board must establish procedures for opening a Roth IRA, a traditional IRA, or
both a Roth IRA and a traditional IRA for each covered employee whose covered employer
transmits employee payroll deduction contributions deleted text begin underdeleted text end new text begin or, if a covered employee is not
employed by a covered employer, transmits payment tonew text end the program.
(c) Contributions must be made on an after-tax (Roth) basis, unless the covered employee
elects to contribute on a pretax basis.
Sec. 6.
Minnesota Statutes 2025 Supplement, section 187.05, subdivision 1a, is amended
to read:
Subd. 1a.
Certification by employers that are not covered employers.
(a) Any entity
or person may file new text begin through the program web portal or, with the consent of the executive
director, by mail or email, new text end a certification deleted text begin with the executive director on a form prescribed
by the executive director and provide documentation in support of the certification, as
requested by the executive director,deleted text end stating that the entity or person is not a covered employer.
The certification must state that the entity or person is not a covered employer for one or
more of the following reasons:
(1) the entity or person has not been engaged for at least 12 months in a business, industry,
profession, trade, or other enterprise in Minnesota, whether for profit or not for profit;
(2) the entity or person does not employ five or more employees;
(3) the entity or person sponsors or contributes to or, in the immediately preceding 12
months, sponsored or contributed to a retirement savings plan for its employees; or
(4) the entity is a political subdivision of the state or federal government.
(b) Within 30 days of receiving the certification, the executive director must accept the
certification or issue a determination that the entity or person is a covered employer and
subject to the requirements of section 187.07.
(c) The entity or person may appeal the executive director's determination by filing an
appeal with the board of directors no later than 30 days after receipt of the determination.
new text begin
(d) If necessary to determine compliance with program requirements, the executive
director may request that an entity or person provide documentation in support of a
certification filed under paragraph (a). If the entity or person does not provide supporting
documentation within 30 days of the request or the documentation is inadequate, the executive
director may reject the certification and require the entity or person to enroll its employees
in the program.
new text end
Sec. 7.
Minnesota Statutes 2025 Supplement, section 187.05, subdivision 4, is amended
to read:
Subd. 4.
Contribution rate.
(a) The board may change the required employee
contribution rates and the escalation schedule under section 187.07, subdivision deleted text begin 1deleted text end new text begin 1anew text end .
new text begin (b)new text end The board must provide all covered employers new text begin and covered employees new text end with notice
of a change in employee contribution rates or the escalation schedule at least six months in
advance of the effective date of the change.
deleted text begin
(b) A covered employee must have the right, annually or more frequently as determined
by the board, to change the contribution rate, opt out or elect not to contribute, or cease
contributions.
deleted text end
Sec. 8.
Minnesota Statutes 2024, section 187.05, subdivision 7, is amended to read:
Subd. 7.
Individuals not employed by a covered employer.
(a) In addition to home
and community-based services employees under paragraph (b), the board may allow
individuals not employed by a covered employer to open and contribute to an account in
the program, in which case the individual must be considered a covered employee for
purposes of sections 187.05 to deleted text begin 187.11deleted text end new text begin 187.14new text end .
(b) The board must allow any home and community-based services employee to open
and contribute to an account in the program within deleted text begin sixdeleted text end new text begin twelvenew text end months of the opening of the
program and must consider a home and community-based services employee a covered
employee for purposes of sections 187.05 to deleted text begin 187.11deleted text end new text begin 187.14new text end .
Sec. 9.
Minnesota Statutes 2024, section 187.05, is amended by adding a subdivision to
read:
new text begin Subd. 9. new text end
new text begin
Covered employee right to begin contributing, change the contribution
rate, or not contribute.
new text end
new text begin
A covered employee must have the right, annually or more
frequently as determined by the board, to:
new text end
new text begin
(1) begin making contributions to the program by payroll deduction or, if not employed
by a covered employer, by payment to the program;
new text end
new text begin
(2) change the percentage of compensation being contributed to the program by payroll
deduction;
new text end
new text begin
(3) elect not to contribute; or
new text end
new text begin
(4) cease contributions.
new text end
Sec. 10.
Minnesota Statutes 2024, section 187.06, subdivision 3, is amended to read:
Subd. 3.
Individual accounts established.
The trustee or custodian, as applicable, must
maintain an account for new text begin each covered employee who has made or is making new text end employee
payroll deduction contributions deleted text begin with respect to each covered employeedeleted text end new text begin or, if the covered
employee is not employed by a covered employer, has made or is making payments to the
program until all assets in the account are distributednew text end . deleted text begin Interest anddeleted text end new text begin Investmentnew text end earnings on
the amount in the account are credited to the accountnew text begin ,new text end and new text begin investment new text end losses new text begin and
administrative fees new text end are deductednew text begin from the accountnew text end .
Sec. 11.
Minnesota Statutes 2025 Supplement, section 187.07, subdivision 1, is amended
to read:
Subdivision 1.
Requirement to enroll employeesnew text begin and begin payroll deduction
contributionsnew text end .
(a) deleted text begin Eachdeleted text end new text begin Anew text end covered employer must enroll its covered employees in the
program deleted text begin and withholddeleted text end new text begin during the applicable enrollment window.
new text end
new text begin (b) The covered employer must begin withholdingnew text end payroll deduction contributions from
new text begin the first paycheck of new text end each covered deleted text begin employee's paycheck no later than 30 days after the
covered employee's first day of employmentdeleted text end new text begin employee after the end of the covered employee's
waiting periodnew text end , unless the covered employee has elected not to contribute.
deleted text begin
(b) Unless the board has approved a different rate or rates under section 187.05,
subdivision 4, or a covered employee has elected a different contribution rate or not to
contribute, the employee contribution rates and escalation schedule are:
deleted text end
deleted text begin
(1) five percent of pay for the covered employee's first year of participation;
deleted text end
deleted text begin
(2) six percent of pay for the covered employee's second year of participation;
deleted text end
deleted text begin
(3) seven percent of pay for the covered employee's third year of participation; and
deleted text end
deleted text begin
(4) eight percent of pay for the covered employee's fourth year of participation and each
year thereafter.
deleted text end
(c) Paragraph (a) does not apply to a covered employer until the covered employer's
enrollment window has opened. deleted text begin No later than 30 days afterdeleted text end new text begin Bynew text end the end of the enrollment
window, the covered employer must have enrolled all covered employeesdeleted text begin , except for any
covered employee who has elected not to contributedeleted text end .
deleted text begin
(d) The executive director must communicate annually by email or otherwise in writing
to each covered employee:
deleted text end
deleted text begin
(1) the annual limit on employee contributions to a traditional IRA and a Roth IRA in
effect under section 408 and 408A, respectively, of the Internal Revenue Code; and
deleted text end
deleted text begin
(2) notice that it is the responsibility of the covered employee to reduce the covered
employee's contribution rate from the rate under paragraph (b) as necessary to stay within
the limit under section 408 or section 408A of the Internal Revenue Code that is applicable
to the covered employee and the type of IRA to which the contributions are being credited.
deleted text end
Sec. 12.
Minnesota Statutes 2024, section 187.07, is amended by adding a subdivision to
read:
new text begin Subd. 1a. new text end
new text begin Default contribution rate and escalation schedule. new text end
new text begin
Unless the board has
approved a different rate or rates under section 187.05, subdivision 4, or a covered employee
has elected a different contribution rate or not to contribute, the employee contribution rates
and escalation schedule are:
new text end
new text begin
(1) five percent of pay for the covered employee's first year of participation;
new text end
new text begin
(2) six percent of pay for the covered employee's second year of participation;
new text end
new text begin
(3) seven percent of pay for the covered employee's third year of participation; and
new text end
new text begin
(4) eight percent of pay for the covered employee's fourth year of participation and each
year thereafter.
new text end
Sec. 13.
Minnesota Statutes 2024, section 187.08, subdivision 1, is amended to read:
Subdivision 1.
Membership.
The policy-making function of the program is vested in a
board of directors consisting of seven members as follows:
(1) the executive director of the Minnesota State Retirement System or the executive
director's designee;
(2) the executive director of the State Board of Investment or the executive director's
designee;
(3) three members new text begin with relevant experience new text end chosen by the Legislative Commission on
Pensions and Retirementdeleted text begin , one from each of the following experience categories:deleted text end new text begin ;
new text end
deleted text begin
(i) executive or operations manager with substantial experience in record keeping 401(k)
plans;
deleted text end
deleted text begin
(ii) executive or operations manager with substantial experience in individual retirement
accounts; and
deleted text end
deleted text begin
(iii) executive or other professional with substantial experience in retirement plan
investments;
deleted text end
(4) a human resources or retirement benefits executive from a private company with
substantial experience in administering the company's 401(k) plan, appointed by the governor;
and
(5) a small business owner, a small business executive, or a nonprofit executive appointed
by the governor.
Sec. 14.
Minnesota Statutes 2024, section 187.08, subdivision 2, is amended to read:
Subd. 2.
Appointment.
new text begin (a) new text end Members appointed by the governor must be appointed as
provided in section 15.0597.
new text begin
(b) The Legislative Commission on Pensions and Retirement is not required to consider
a seat on the board as vacant if the incumbent provides notice to the chair of the board and
executive director that the incumbent wishes to serve an additional term as permitted under
subdivision 3. The executive director of the program must notify the secretary of state and
the chair or executive director of the Legislative Commission on Pensions and Retirement
that the incumbent wishes to serve an additional term. The secretary of state must not post
a seat as vacant and accept applications if the chair of the board and the chair or executive
director of the Legislative Commission on Pensions and Retirement accept the incumbent's
request to serve an additional term.
new text end
Sec. 15.
Minnesota Statutes 2025 Supplement, section 187.08, subdivision 3, is amended
to read:
Subd. 3.
Membership terms.
(a) Board members serve for two-year terms, except:
(1) the executive directors of the Minnesota State Retirement System and the State Board
of Investment serve indefinitely; and
(2) the initial term of the member who is an executive or other professional with
substantial experience in retirement plan investments under subdivision 1, clause (3), deleted text begin item
deleted text end deleted text begin (iii),deleted text end and the member who is a human resources executive under subdivision 1, clause (4),
is three years.
(b) new text begin A new text end board deleted text begin members' terms may be renewed,deleted text end new text begin member may renew the member's term,new text end
but no membernew text begin , other than the executive directors of the Minnesota State Retirement Systems
and the State Board of Investment,new text end may serve more than two consecutive terms.new text begin To serve
an additional term, an incumbent must notify the chair of the board and the executive director
that the incumbent wishes to serve an additional term.
new text end
Sec. 16.
Minnesota Statutes 2024, section 187.08, subdivision 6, is amended to read:
Subd. 6.
Chairnew text begin ; quorumnew text end .
new text begin (a) new text end The board deleted text begin shalldeleted text end new text begin mustnew text end deleted text begin selectdeleted text end new text begin electnew text end a chair from among its
members. The chair deleted text begin shall servedeleted text end new text begin serves fornew text end a two-year termnew text begin and may be reelected by the
members for additional two-year termsnew text end . The board may select other officers as necessary
to assist the board in performing the board's duties.
new text begin
(b) A majority of the members, not including for this purpose any vacant member seat,
constitutes a quorum. Approval of any item of board business is effective if approved by a
simple majority vote of members present at a meeting.
new text end
Sec. 17.
Minnesota Statutes 2024, section 187.08, subdivision 8, is amended to read:
Subd. 8.
Duties.
In addition to the duties set forth elsewhere in this chapter, the board
has the following duties:
(1) to establish secure processes for enrolling covered employees in the program and
for transmitting employee contributions to accounts in the trust;
(2) to prepare a budget and establish procedures for the payment of costs of administering
and operating the program;
(3) to lease or otherwise procure equipment necessary to administer the program;
(4) to procure insurance in connection with the property of the program and the activities
of the board, executive director, and other staff;
(5) to determine the following:
(i) any criteria for a covered employee other than employment with a covered employer
under section 187.03, subdivision 5;
(ii) contribution rates and an escalation schedule under section 187.05, subdivision 4;
(iii) withdrawal and distribution options under section 187.05, subdivision 6; and
(iv) the default investment fund under section 187.06, subdivision 5;
(6) to keep annual administrative fees, costs, and expenses as low as possible:
(i) except that any administrative fee assessed against the accounts of covered employees
may not exceed a reasonable amount relative to the fees charged by auto-IRA or defined
contribution programs of similar size in the state of Minnesota or another state; and
(ii) the fee may be asset-based, flat fee, or a hybrid combination of asset-based and flat
fee;
(7) to determine the eligibility of an employer, employee, or other individual to participate
in the program and review and decide claims for benefits and make factual determinations;
deleted text begin
(8) to prepare information regarding the program that is clear and concise for
dissemination to all covered employees and includes the following:
deleted text end
deleted text begin
(i) the benefits and risks associated with participating in the program;
deleted text end
deleted text begin
(ii) procedures for enrolling in the program and opting out of the program, electing a
different or zero percent employee contribution rate, making investment elections, applying
for a distribution of employee accounts, and making a claim for benefits;
deleted text end
deleted text begin
(iii) the federal and state income tax consequences of participating in the program, which
may consist of or include the disclosure statement required to be distributed by retirement
plan trustees or custodians under the Internal Revenue Code and the Treasury Regulations
thereunder;
deleted text end
deleted text begin
(iv) how to obtain additional information on the program; and
deleted text end
deleted text begin
(v) disclaimers of covered employer and state responsibility, including the following
statements:
deleted text end
deleted text begin
(A) covered employees seeking financial, investment, or tax advice should contact their
own advisors;
deleted text end
deleted text begin
(B) neither a covered employer nor the state of Minnesota are liable for decisions covered
employees make regarding their account in the program;
deleted text end
deleted text begin
(C) neither a covered employer nor the state of Minnesota guarantees the accounts in
the program or any particular investment rate of return; and
deleted text end
deleted text begin
(D) neither a covered employer nor the state of Minnesota monitors or has an obligation
to monitor any covered employee's eligibility under the Internal Revenue Code to make
contributions to an account in the program, or whether the covered employee's contributions
to an account in the program exceed the maximum permissible contribution under the
Internal Revenue Code;
deleted text end
deleted text begin (9)deleted text end new text begin (8) new text end to publish an annual deleted text begin financialdeleted text end reportdeleted text begin , prepared according to generally accepted
accounting principles, on the operations of the program, which must include but not be
limited to costs attributable to the use of outside consultants, independent contractors, and
other persons who are not state employeesdeleted text end and deliver the report to the chairs and ranking
minority members of the legislative committees with jurisdiction over jobs and economic
development and state government finance, the executive directors of the State Board of
Investment and the Legislative Commission on Pensions and Retirement, and the Legislative
Reference Library;
deleted text begin
(10) to publish an annual report regarding plan outcomes, progress toward savings goals
established by the board, statistics on the number of participants, participating employers,
and covered employees who have opted out of participation, plan expenses, estimated impact
of the program on social safety net programs, and penalties and violations, and disciplinary
actions for enforcement, and deliver the report to the chairs and ranking minority members
of the legislative committees with jurisdiction over jobs and economic development and
state government finance, the executive directors of the State Board of Investment and the
Legislative Commission on Pensions and Retirement, and the Legislative Reference Library;
deleted text end
deleted text begin (11)deleted text end new text begin (9)new text end to file all reports required under the Internal Revenue Code or chapter 290;
deleted text begin (12)deleted text end new text begin (10)new text end to, at the board's discretion, seek and accept gifts, grants, and donations to be
used for the program, unless such gifts, grants, or donations would result in a conflict of
interest relating to the solicitation of service provider for program administration, and deposit
such gifts, grants, or donations in the Secure Choice administrative fund;
deleted text begin (13)deleted text end new text begin (11)new text end to, at the board's discretion, seek and accept appropriations from the state or
loans from the state or any agency of the state;
deleted text begin (14)deleted text end new text begin (12)new text end to assess the feasibility of partnering with another state or a governmental
subdivision of another state to administer the program through shared administrative
resources and, if determined beneficial, enter into contracts, agreements, memoranda of
understanding, or other arrangements with any other state or an agency or a subdivision of
any other state to administer, operate, or manage any part of the program, which may include
combining resources, investments, or administrative functions;
deleted text begin (15)deleted text end new text begin (13)new text end to hire, retain, and terminate third-party service providers as the board deems
necessary or desirable for the program, including but not limited to the trustees, consultants,
investment managers or advisors, custodians, insurance companies, recordkeepers,
administrators, consultants, actuaries, legal counsel, auditors, and other professionals,
provided that each service provider is authorized to do business in the state;
deleted text begin (16)deleted text end new text begin (14)new text end to interpret the program's governing documents and this chapter and make all
other decisions necessary to administer the program;
deleted text begin (17)deleted text end new text begin (15)new text end to conduct comprehensive employer and worker education and outreach
regarding the program that reflect the cultures and languages of the state's diverse workforce
population, which may, in the board's discretion, include collaboration with state and local
government agencies, community-based and nonprofit organizations, foundations, vendors,
and other entities deemed appropriate to develop and secure ongoing resources; and
deleted text begin (18)deleted text end new text begin (16)new text end to prepare notices for delivery to covered employees regarding the escalation
schedule and to each covered employee before the covered employee is subject to an
automatic contribution increase.
Sec. 18.
Minnesota Statutes 2025 Supplement, section 187.11, is amended to read:
187.11 OTHER STATE AGENCIES TO PROVIDE ASSISTANCE.
(a) The board may enter into intergovernmental agreements with the commissioner of
revenue, the commissioner of labor and industry, the commissioner of employment and
economic development, and any other state agency that the board deems necessary or
appropriate to provide outreach, technical assistance, or compliance services. An agency
that enters into an intergovernmental agreement with the board pursuant to this section must
collaborate and cooperate with the board to provide the outreach, technical assistance, or
compliance services under any such agreement. The board, executive director, and program
staff must maintain the privacy of data obtained under any intergovernmental agreement if
required under chapter 13.
(b) For purposes of section 268.19, subdivision 1, paragraph (a), clause (20), "assisting
with communication with employers and to verify employer compliance with chapter 187"
means providing the executive director with at least the following information for employers,
to the extent available to the commissioner of employment and economic development:
(1) federal employer identification number;
(2) business name, address, mailing address, email address, and phone number;
(3) number of employees; and
(4) employer industry code.
(c) The commissioner of administration must deleted text begin providedeleted text end new text begin assist the executive director in
identifying and leasing suitablenew text end office space new text begin for the executive director and program staff new text end in
deleted text begin the Capitol complex for the executive director and staff of the programdeleted text end new text begin the city of St. Paulnew text end .
Sec. 19.
Minnesota Statutes 2025 Supplement, section 187.12, subdivision 1, is amended
to read:
Subdivision 1.
Failure to enroll covered employees deleted text begin or distribute informationdeleted text end .
deleted text begin (a)deleted text end
The board may assess penalties against a covered employer that fails to comply with section
187.07, subdivision 1 deleted text begin or 3 or both subdivisions 1 and 3, beginning with the second
anniversary of the date on which the covered employer was first required to comply with
section 187.07, subdivision 1 or 3, as applicable.deleted text end new text begin , paragraph (a), beginning with the second
anniversary of the last day of the applicable enrollment window or fails to comply with
section 187.07, subdivision 1, paragraph (b), beginning with the second anniversary of the
first paycheck after a covered employee's waiting period, as follows:
new text end
deleted text begin
(b) The board may assess the following penalties for a covered employer's failure to
comply with section 187.07, subdivision 1 or 3:
deleted text end
(1) on the second anniversary, a penalty of $100 per covered employee, not to exceed
$4,000;
(2) on the third anniversary, a penalty of $200 per covered employee, not to exceed
$6,000;
(3) on the fourth anniversary, a penalty of $300 per covered employee; and
(4) on each anniversary after the fourth anniversary, a penalty of $500 per covered
employee.
deleted text begin
(c) If the covered employer fails to comply with section 187.07, subdivisions 1 and 3,
the board must assess two times the penalties in paragraph (b).
deleted text end
deleted text begin
(d) The date on which a covered employer is first required to comply with section 187.07,
subdivision 1, is the following:
deleted text end
deleted text begin
(1) for paragraph (a), on or before the 30th day after the first day of employment of a
covered employee hired by the covered employer; and
deleted text end
deleted text begin
(2) for paragraph (b), on or before the 30th day after the end of the enrollment window
applicable to the covered employer.
deleted text end
deleted text begin
(e) The date on which a covered employer is first required to comply with section 187.07,
subdivision 3, is the following:
deleted text end
deleted text begin
(1) for paragraph (a), for a newly hired covered employee, no later than 14 days after
the covered employee's first day of employment; and
deleted text end
deleted text begin
(2) for paragraph (b), no later than the 14th day prior to the date of the first paycheck
from which employee contributions could be deducted for transmittal to the program.
deleted text end
Sec. 20.
new text begin
[187.13] REQUIRED NOTICES.
new text end
new text begin Subdivision 1. new text end
new text begin Notice to covered employees upon enrollment. new text end
new text begin
(a) The board must
disseminate a notice regarding the program that is clear and concise to all covered employees
no later than seven days after a covered employee is enrolled by a covered employer.
new text end
new text begin
(b) The information in the notice must include:
new text end
new text begin
(1) the benefits and risks associated with participating in the program;
new text end
new text begin
(2) procedures for enrolling in the program and opting out of the program, electing a
different or zero percent employee contribution rate, making investment elections, applying
for a distribution of employee accounts, and making a claim for benefits;
new text end
new text begin
(3) the federal and state income tax consequences of participating in the program, which
may consist of or include the disclosure statement required to be distributed by trustees or
custodians under the Internal Revenue Code;
new text end
new text begin
(4) how to obtain additional information on the program; and
new text end
new text begin
(5) disclaimers of covered employer and state responsibility, including the following
statements:
new text end
new text begin
(i) a covered employee seeking financial, investment, or tax advice should contact the
covered employee's advisors;
new text end
new text begin
(ii) neither a covered employer nor the board, the program, or the state of Minnesota is
liable for decisions a covered employee makes regarding the covered employee's account
in the program;
new text end
new text begin
(iii) neither a covered employer nor the state of Minnesota guarantees the accounts in
the program or any particular investment rate of return; and
new text end
new text begin
(iv) neither a covered employer nor the state of Minnesota monitors or has an obligation
to monitor a covered employee's eligibility under the Internal Revenue Code to make
contributions to an account in the program or whether the covered employee's contributions
to an account in the program exceed the maximum permissible contribution under the
Internal Revenue Code.
new text end
new text begin Subd. 2. new text end
new text begin Annual notice to covered employees. new text end
new text begin
The executive director must communicate
annually by email or other means in writing to each covered employee:
new text end
new text begin
(1) the annual limit on employee contributions to a traditional IRA and a Roth IRA in
effect under sections 408 and 408A of the Internal Revenue Code; and
new text end
new text begin
(2) that it is the responsibility of the covered employee to reduce the covered employee's
contribution rate from the rate under section 187.07, subdivision 1a, as necessary to stay
within the limit under section 408 or 408A of the Internal Revenue Code that is applicable
to the covered employee and the type of IRA to which the contributions are being credited.
new text end
Sec. 21.
new text begin
[187.14] CONFIDENTIALITY OF DATA AND NONSOLICITATION.
new text end
new text begin Subdivision 1. new text end
new text begin Confidentiality of data. new text end
new text begin
Covered employee data, account owner data,
account data, and data on beneficiaries of accounts are private data. The program, executive
director, and program staff must not disclose private data on individuals, as defined in
section 13.02, to anyone other than the covered employee, account owner, or beneficiary,
except:
new text end
new text begin
(1) pursuant to a court order;
new text end
new text begin
(2) upon the written consent of the covered employee, account owner, beneficiary, or
other person who provides the data or is the subject of the data; or
new text end
new text begin
(3) to a third party with which the program has contracted to perform administrative or
record-keeping functions, but only to the extent necessary to carry out the functions and
subject to the requirements of this subdivision as if the third party were the program.
new text end
new text begin Subd. 2. new text end
new text begin Nonsolicitation restriction. new text end
new text begin
Neither program staff nor a third-party
administrator, record keeper, or any other vendor or consultant with which the program has
contracted may solicit a covered employee, an account owner, or a beneficiary for any
product or services not related to the program.
new text end
Sec. 22. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2025 Supplement, section 187.07, subdivision 3,
new text end
new text begin
is repealed.
new text end
Sec. 23. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 22 are effective the day following final enactment.
new text end
ARTICLE 10
SUPPLEMENTAL PLANS
Section 1.
Minnesota Statutes 2024, section 356.24, subdivision 3, is amended to read:
Subd. 3.
Deferred compensation plan.
(a) As used in this section:
(1) "deferred compensation plan" means a plan that satisfies the requirements of this
subdivision;
(2) "plan administrator" means the individual or entity defined as the plan administrator
in the plan document for the Minnesota deferred compensation plan under section 352.965
or a deferred compensation plan under section 457(b) of the Internal Revenue Code; and
(3) "vendor" means the provider of an annuity contract, custodial account, or retirement
income account under a tax-sheltered annuity plan under section 403(b) of the Internal
Revenue Code.
(b) The plan is:
(1) the Minnesota deferred compensation plan under section 352.965;
(2) a tax-sheltered annuity plan under section 403(b) of the Internal Revenue Code; or
(3) a deferred compensation plan under section 457(b) of the Internal Revenue Code.
(c) For each investment fund available to participants under the plan, other than in a
self-directed brokerage account or fixed annuity contract, the plan administrator or vendor
discloses at least annually to participants a statement that sets forth (1) all fees, including
administrative, maintenance, and investment fees, that impact the rate of return on each
investment fund available under the plan, and (2) the rates of return for the prior one-, five-,
and ten-year periods or for the life of the fund, if shorter, in an easily understandable
document. deleted text begin The plan administrator or vendor must file a copy of this statement annually with
the executive director of the Legislative Commission on Pensions and Retirement.
deleted text end
(d) Enrollment in the plan is provided for in:
(1) a personnel policy of the public employer;
(2) a collective bargaining agreement between the public employer and the exclusive
representative of public employees in an appropriate unit; or
(3) an individual employment contract (i) between a city and a city manager or other
management employee, or (ii) between a school district and a superintendent or other
management employee.
(e) The plan covers employees of a school district, state agency, or other governmental
subdivision. The plan may cover city managers covered by an alternative retirement
arrangement under section 353.028, subdivision 3, paragraph (a) or (b), but must not cover
employees of the Board of Trustees of Minnesota State Colleges and Universities who are
covered by the Higher Education Supplemental Retirement Plan under chapter 354C.
(f) If the public employer makes matching contributions to the plan, the matching
contributions must match, on a dollar for dollar basis, employee elective deferral contributions
not to exceed the lesser of (1) the maximum authorized under the policy described in
paragraph (d) that provides for enrollment in the plan or program, or (2) one-half of the
annual limit on elective deferrals under section 402(g) of the Internal Revenue Code. In
lieu of or in addition to matching an employee's elective deferral contributions, the public
employer may make employer matching contributions on behalf of an employee on account
of qualified student loan payments, as defined in the Secure 2.0 Act of 2022, Public Law
117-328 (December 29, 2022), Division T, section 110, paragraph (b), and any regulations
adopted thereunder. The employer matching contributions on account of an employee's
qualified student loan payments plus any employer matching contributions that match an
employee's elective deferral contributions must not exceed, for the year, the lesser of (1)
the maximum authorized under the policy described in paragraph (d) that provides for
enrollment in the plan or program, (2) one-half of the annual limit on elective deferrals
under section 402(g) of the Internal Revenue Code, or (3) the employee's compensation for
the year.
(g) Contributions to the plan may include contributions deducted from an employee's
sick leave, accumulated vacation leave, or accumulated severance pay, whether characterized
as employee contributions or nonelective employer contributions, up to applicable limits
under the Internal Revenue Code. Such contributions are not subject to the match requirement
and limit in paragraph (f).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 11
HEALTH CARE SAVINGS PLAN
Section 1.
Minnesota Statutes 2024, section 352.98, subdivision 3, is amended to read:
Subd. 3.
Contributions.
(a) Contributions to the plan must be defined in a personnel
policy deleted text begin or in adeleted text end new text begin ,new text end collective bargaining agreementnew text begin , participation plan, or resolution of the
governing bodynew text end of a public employer or political subdivision.
new text begin (b)new text end The executive director may offer different types of trusts permitted under the Internal
Revenue Code to best meet the needs of different employer units.
deleted text begin (b)deleted text end new text begin (c)new text end Contributions to the plan by or on behalf of the participant must be held in trust
for reimbursement of eligible health-related expenses for participants and their dependents
following termination from public employment or in other circumstances set forth in the
plan document. The executive director shall maintain a separate account of the contributions
made by or on behalf of each participant and the earnings thereon. The executive director
shall make available a limited range of investment options, and each participant may direct
the investment of the accumulations in the participant's account among the investment
options made available by the executive director.
deleted text begin (c)deleted text end new text begin (d)new text end This section does not obligate a public employer to meet and negotiate in good
faith with the exclusive bargaining representative of any public employee group regarding
an employer contribution to a postretirement or active employee health care savings plan
authorized by this section and section 356.24, subdivision 1, clause (7). It is not the intent
of the legislature to authorize the state to incur new funding obligations for the costs of
retiree health care or the costs of administering retiree health care plans or accounts.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 12
WORK GROUPS
Section 1. new text begin WORK GROUP ON VESTING AND EMERGENCY MEDICAL
PROVIDERS IN FIREFIGHTER RELIEF ASSOCIATIONS AND THE STATEWIDE
VOLUNTEER FIREFIGHTER PLAN.
new text end
new text begin Subdivision 1. new text end
new text begin Work group established; purpose. new text end
new text begin
The executive director of the
Legislative Commission on Pensions and Retirement (commission executive director) must
convene a work group for the purpose of recommending legislation that would:
new text end
new text begin
(1) shorten the vesting schedule for firefighter relief associations to a maximum of ten
years;
new text end
new text begin
(2) require that firefighter relief associations include volunteer or paid on-call emergency
medical providers as members on the same basis as volunteer or paid on-call firefighters;
and
new text end
new text begin
(3) make the same changes to the PERA Statewide Volunteer Firefighter Plan (SVF) as
are recommended for firefighter relief associations.
new text end
new text begin Subd. 2. new text end
new text begin Membership. new text end
new text begin
(a) The members of the work group are the following:
new text end
new text begin
(1) a representative from the Minnesota Association of Townships;
new text end
new text begin
(2) a representative from the Minnesota Association of Small Cities;
new text end
new text begin
(3) a representative from the League of Minnesota Cities;
new text end
new text begin
(4) a representative from the Minnesota State Fire Chiefs Association;
new text end
new text begin
(5) a representative from the Minnesota State Fire Departments Association;
new text end
new text begin
(6) a representative of the Office of Emergency Medical Services, designated by the
director of the Office of Emergency Medical Services;
new text end
new text begin
(7) a representative of the Office of the State Auditor, designated by the state auditor;
and
new text end
new text begin
(8) the executive director of the Public Employees Retirement Association, or the
executive director's designee.
new text end
new text begin
(b) The commission executive director may invite others, including the commission's
actuary, to participate in one or more meetings of the work group.
new text end
new text begin
(c) The organizations and agencies specified in paragraph (a) must provide the
commission executive director with the names and contact information for the representatives
who will serve on the work group by June 12, 2026.
new text end
new text begin Subd. 3. new text end
new text begin Mandate. new text end
new text begin
In arriving at the work group's recommendations, the work group
must determine and consider:
new text end
new text begin
(1) whether shortening vesting schedules has any impact on a relief association or SVF
fire department's liabilities or funded status and, if so, what options are available to lessen
the impact;
new text end
new text begin
(2) any studies or data supporting or critical of the premise that longer vesting schedules
aid retention or recruitment;
new text end
new text begin
(3) how many fire departments, whether affiliated with a relief association or participating
in the SVF, have emergency medical providers who solely perform that function, how many
of these emergency medical providers are in each fire department, and the funded status of
the affiliated relief association or SVF account;
new text end
new text begin
(4) the basis, if any, for excluding emergency medical providers from firefighter relief
associations and the SVF;
new text end
new text begin
(5) the cost of requiring past service credit be provided to emergency medical providers
when the providers become members of relief associations that are defined benefit plans or
the SVF defined benefit plan and options for providing past service credit (that is, as far
back as a provider has active service in the fire department or back to 2019);
new text end
new text begin
(6) whether the chronic overfunding in relief associations and the SVF can be expected
to cover any liabilities under clause (1) or costs under clause (3) and what options are
available for relief associations or fire department accounts in the SVF that are not
overfunded;
new text end
new text begin
(7) options for phasing in the shorter vesting schedules and requiring coverage of and
past service credit for emergency medical providers; and
new text end
new text begin
(8) any other issues related to vesting and eligibility that merit discussion by the work
group and inclusion in the recommendations.
new text end
new text begin Subd. 4. new text end
new text begin Recommendations; proposed legislation. new text end
new text begin
(a) With the assistance of the
commission executive director, the work group must prepare proposed legislation that
implements the recommendations of the work group. If the work group recommends more
than one approach, the work group must provide alternative bills.
new text end
new text begin
(b) The commission executive director must submit the recommendations of the work
group, along with proposed legislation that implements the recommendations, to the
Legislative Commission on Pensions and Retirement by January 29, 2027, or, if later, the
date all members of the commission have been appointed for the 2027-2028 biennium.
new text end
new text begin Subd. 5. new text end
new text begin Meetings; chair; administrative support. new text end
new text begin
(a) The commission executive
director must convene the first meeting of the work group by July 27, 2026.
new text end
new text begin
(b) The members of the work group must elect a chair or co-chairs at the first meeting.
The chair or co-chair is not required to be a member of the work group.
new text end
new text begin
(c) Meetings may be conducted remotely or in person or a combination of remotely and
in person.
new text end
new text begin
(d) Commission staff must provide meeting space, if needed, and administrative support
to the chair or co-chairs of the work group.
new text end
new text begin Subd. 6. new text end
new text begin Compensation; lobbying; retaliation. new text end
new text begin
(a) Members of the work group serve
without compensation.
new text end
new text begin
(b) Participation in the work group is not lobbying under Minnesota Statutes, chapter
10A.
new text end
new text begin
(c) An individual's employer or an organization or association of which an individual
is a member must not retaliate against the individual because of the individual's participation
in the work group.
new text end
new text begin Subd. 7. new text end
new text begin Expiration. new text end
new text begin
The work group expires June 30, 2027.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2. new text begin WORK GROUP ON DUTY DISABILITY AND THE PUBLIC SAFETY
OFFICER'S BENEFIT ACCOUNT.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Commission" means the Legislative Commission on Pensions and Retirement.
new text end
new text begin
(c) "Executive director" means the executive director of the commission.
new text end
new text begin
(d) "LCPR account" means the account established in the Legislative Coordinating
Commission that contains $26,694, as of April 1, 2026, and was funded in fiscal year 2024
with a $100,000 appropriation to the Legislative Coordinating Commission for the Legislative
Commission on Pensions and Retirement pursuant to Laws 2023, chapter 45, article 6,
section 3.
new text end
new text begin
(e) "Maximum benefit" means the duty disability benefit under Minnesota Statutes,
section 353.656, or the employer's cost to provide the health insurance coverage under
Minnesota Statutes, section 299A.465.
new text end
new text begin
(f) "Police and fire plan" means the public employees police and fire plan administered
by the Public Employees Retirement Association.
new text end
new text begin
(g) "Public safety officer's benefit account" means the account established under
Minnesota Statutes, section 299A.42.
new text end
new text begin
(h) "VA disability schedule" means the schedule for rating disabilities under Code of
Federal Regulations, title 38, part 4, published by the Veterans Affairs Department and most
recently amended on March 20, 2024.
new text end
new text begin Subd. 2. new text end
new text begin Need for a work group. new text end
new text begin
The commission has identified the following reasons
for establishing a work group:
new text end
new text begin
(1) the public safety officer's benefit account is anticipated to be depleted by 2028 based
on information provided by the Department of Management and Budget;
new text end
new text begin
(2) the rate of approval by the Public Employees Retirement Association of duty disability
applications is approximately 100 percent;
new text end
new text begin
(3) since only one annual report has been filed by the commissioner of public safety
under Minnesota Statutes, section 299A.42, subdivision 2, and the report contains minimal
information on reimbursements in the categories for treatment, salary, fringe benefits, and
health care insurance, the commission is unable to use this report to determine trends,
per-member reimbursements, or related information;
new text end
new text begin
(4) waiting until May 20, 2027, to receive the report from the executive director of the
Public Employees Retirement Association under Minnesota Statutes, section 353.032,
subdivision 11, regarding the impact on public safety duty disability trends and costs is too
late to allow for a legislative solution if trends indicate psychological condition treatment
is not resulting in police and fire plan members being able to return to work rather than take
a leave of absence for duty disability;
new text end
new text begin
(5) minimal information is available regarding whether police officers and firefighters
who retire under the police and fire plan before age 65 are able to obtain health insurance
coverage at a reasonable cost until age 65 when Medicare is available and whether there
are options available to the police officers and firefighters to obtain adequate coverage;
new text end
new text begin
(6) there has been an increase of over 100 percent in the cost of duty disability benefits
as reflected in the change between the 2024 actuarial valuation of the police and fire plan
and the 2025 actuarial valuation and the effect of this increase on the overall health of the
police and fire plan; and
new text end
new text begin
(7) to determine how to formulate solutions to the reasons in clauses (1) to (6), legislators
and other decision makers need a better understanding of the interaction of workers'
compensation, the availability and cost of health insurance coverage upon retirement or
reemployment, the application process for and amount of duty disability benefits, the ability
of public employers to continue to offer health insurance coverage to duty-disabled and
retired employees, and the federally provided benefits for public safety officers.
new text end
new text begin Subd. 3. new text end
new text begin Work group established; purpose. new text end
new text begin
The executive director must convene a
work group for the purpose of recommending legislation that would:
new text end
new text begin
(1) reform duty disability for members of the police and fire plan; and
new text end
new text begin
(2) ensure that members of the police and fire plan who become duty disabled or retire
have access to affordable health insurance coverage until Medicare eligibility.
new text end
new text begin Subd. 4. new text end
new text begin Membership. new text end
new text begin
(a) The members of the work group are the following:
new text end
new text begin
(1) one representative from the Minnesota Police and Peace Officers Association;
new text end
new text begin
(2) one representative from the Minnesota Professional Fire Fighters Association;
new text end
new text begin
(3) one representative from Law Enforcement Labor Services;
new text end
new text begin
(4) one representative from the League of Minnesota Cities;
new text end
new text begin
(5) one representative from the Association of Minnesota Counties;
new text end
new text begin
(6) one representative from the Minnesota Inter-County Association;
new text end
new text begin
(7) one representative from the Coalition of Greater Minnesota Cities;
new text end
new text begin
(8) one representative from the Minnesota Chiefs of Police Association;
new text end
new text begin
(9) one representative from the Minnesota State Fire Chiefs Association;
new text end
new text begin
(10) one representative from the Minnesota Sheriffs' Association;
new text end
new text begin
(11) the executive director of the Public Employees Retirement Association or the
executive director's designee;
new text end
new text begin
(12) the commissioner of public safety or the commissioner's designee;
new text end
new text begin
(13) the commissioner of labor and industry or the commissioner's designee;
new text end
new text begin
(14) the assistant commissioner of the Workers' Compensation Division of the Department
of Labor and Industry or the assistant commissioner's designee;
new text end
new text begin
(15) one designee of the commissioner of management and budget with expertise in the
public employees insurance program and the state employee group insurance program; and
new text end
new text begin
(16) two members of the senate, one each appointed by the senate majority leader and
the senate minority leader, and two members of the house of representatives, one each
appointed by the speaker and the minority leader of the house of representatives, and who
commit to attending most meetings of the work group.
new text end
new text begin
(b) Each of the organizations or agencies specified in paragraph (a) may designate an
alternate who is entitled to participate in meetings of the work group along with the
designated representative. The co-chairs may establish rules regarding the participation of
alternates in meetings as necessary to ensure that all representatives have the opportunity
to speak.
new text end
new text begin
(c) The executive director may invite others to participate in one or more meetings of
the work group.
new text end
new text begin
(d) Each organization and agency specified in paragraph (a) must provide the executive
director with the names and contact information for the representative and alternate who
will serve on the work group by June 19, 2026. Legislators who wish to serve on the work
group must notify the executive director by June 19, 2026.
new text end
new text begin Subd. 5. new text end
new text begin Mandate. new text end
new text begin
(a) Legislation recommended by the work group must address each
topic in paragraphs (b) to (h), or the work group must explain in an accompanying report
the consideration given to the topic and the reasons the legislation does not address the
topic.
new text end
new text begin
(b) Benefit adequacy. The work group must address the adequacy of the retirement,
medical, and other welfare-related benefits to disabled members of the police and fire plan
with the objective of establishing a comprehensive package of benefits.
new text end
new text begin
(c) Funding of the public safety officer's benefit account. To fund the public safety
officer's benefit account established under Minnesota Statutes, section 299A.42, the work
group must recommend options, including but not limited to:
new text end
new text begin
(1) requiring members of the police and fire plan to contribute a percentage of pay on
a pre-tax basis to the account;
new text end
new text begin
(2) requiring the Department of Public Safety to reimburse public employers under
Minnesota Statutes, section 299A.465, subdivision 4, if there is not sufficient money in the
account to satisfy all requests for reimbursement;
new text end
new text begin
(3) securing permanent funding for the account; and
new text end
new text begin
(4) requiring the State Board of Investment to invest the account and credit the account
with investment earnings and losses.
new text end
new text begin
(d) Affordable retiree health insurance coverage. To ensure affordable options for
providing health insurance coverage are available to retirees under the police and fire plan
during retirement, to age 65, the work group must recommend options, including but not
limited to:
new text end
new text begin
(1) allowing members of the police and fire plan during employment to contribute to an
account on a pre-tax basis to pay premiums, co-pays, and other costs of medical care during
retirement; and
new text end
new text begin
(2) allowing retirees to be covered by the state employee group insurance program from
retirement to age 65.
new text end
new text begin
(e) Duty disability definition, assessment, and process reform. To restructure the
procedures for assessing duty disability under the police and fire plan and continued health
insurance coverage during the period of disability, the work group must recommend options,
including but not limited to:
new text end
new text begin
(1) revising the definition of "duty disability" as defined in Minnesota Statutes, section
353.01, subdivision 41, as necessary to be consistent with this paragraph;
new text end
new text begin
(2) assessing the potential for fraudulent applications for duty disability benefits and
implementing measures that can be implemented to detect fraud;
new text end
new text begin
(3) requiring that duty disability applications be assessed by referring to the VA disability
schedule, which indicates the extent to which a disability impairs a member's ability to
perform the functions of the member's employment position, such that the percentage derived
from the VA disability schedule would be applied to both maximum benefits and the resulting
benefits are the duty disability and health insurance continuation benefits to which the
member is entitled;
new text end
new text begin
(4) requiring the decision on whether a member has a duty disability be based on a
medical assessment from a medical professional who is not treating the member for the
disability; and
new text end
new text begin
(5) the establishment of a duty disability review board to consider and determine
eligibility for duty disability benefits and continued health insurance coverage consisting
of one representative appointed by each of the following organizations:
new text end
new text begin
(i) Minnesota Chiefs of Police Association;
new text end
new text begin
(ii) Minnesota State Fire Chiefs Association;
new text end
new text begin
(iii) Minnesota Sheriffs' Association;
new text end
new text begin
(iv) Minnesota Police and Peace Officers Association;
new text end
new text begin
(v) Minnesota Professional Fire Fighters Association;
new text end
new text begin
(vi) Law Enforcement Labor Services;
new text end
new text begin
(vii) League of Minnesota Cities;
new text end
new text begin
(viii) Association of Minnesota Counties;
new text end
new text begin
(ix) Minnesota Board of Psychology; and
new text end
new text begin
(x) Minnesota Board of Medical Practice.
new text end
new text begin
The work group must provide a governance structure for the duty disability review board,
including its leadership, meeting schedule, voting and procedural rules, and a process for
reviewing cases and determine the review board's relationship to the Public Employees
Retirement Association, including the association's transfer of application and supporting
documentation to the review board on a confidential basis.
new text end
new text begin
(f) Report assessment. The work group must consider the following reports and address
key considerations, challenges, recommendations, and shortcomings identified in the reports
in the legislation recommended by the work group:
new text end
new text begin
(1) "Adequacy of Disability Benefits for Minnesota Police Officers: Final Report,"
January 2023, prepared by numerous authors and presented to the Department of Labor and
Industry; and
new text end
new text begin
(2) "Evaluating PTSD claims in Minnesota's workers' compensation system: Findings
and recommendations," October 2025, prepared by numerous authors in collaboration with
the Department of Labor and Industry.
new text end
new text begin
(g) Psychological treatment assessment. The work group must assess the success of the
psychological condition treatment required under Minnesota Statutes, section 353.032, in
returning members of the police and fire plan to the workforce and whether the requirement
should be repealed in favor of other treatment options that are likely to have more success.
Options include but are not limited to contracting with resident treatment programs, such
as the IAFF Center of Excellence for Behavioral Health Treatment and Recovery.
new text end
new text begin
(h) Department of Public Safety reporting. The work group must assess the required
reporting by the commissioner of public safety under Minnesota Statutes, section 299A.42,
subdivision 2, and provide more specificity regarding the information that must be reported
and penalties if information is not reported by the due date in section 299A.42, subdivision
2.
new text end
new text begin Subd. 6. new text end
new text begin Timely response by agencies. new text end
new text begin
Upon the request of a co-chair of the work group
or the executive director, the commissioner of public safety, labor and industry, or
management and budget, or the executive director of the Public Employees Retirement
Association, as applicable, must promptly furnish the work group with any data requested
as the work group determines is necessary to fulfill its purpose.
new text end
new text begin Subd. 7. new text end
new text begin Retention of experts. new text end
new text begin
(a) The executive director, working with the co-chairs
of the work group, may retain the services of experts, including attorneys and consultants,
to advise the work group on topics on which no state agency personnel have expertise,
including but not limited to tax-deferred options for setting aside compensation to pay for
health insurance coverage during periods of duty disability or retirement and the application
of the VA disability schedule to injuries and illness.
new text end
new text begin
(b) With the consent of the chair, vice chair, or secretary of the commission, the executive
director may pay for the services of experts under paragraph (a) with money in the LCPR
account.
new text end
new text begin Subd. 8. new text end
new text begin Recommendations; proposed legislation. new text end
new text begin
(a) With the assistance of the
executive director, the work group must prepare proposed legislation that implements the
recommendations of the work group. If the work group recommends more than one approach,
the work group must provide alternative legislation.
new text end
new text begin
(b) The executive director must submit the recommendations of the work group, along
with proposed legislation that implements the recommendations, to the commission by
March 1, 2027, or the date all members of the commission have been appointed for the
2027-2028 biennium, whichever is later.
new text end
new text begin Subd. 9. new text end
new text begin Meetings; chair; administrative support. new text end
new text begin
(a) The executive director must
convene the first meeting of the work group by June 30, 2026.
new text end
new text begin
(b) The members of the work group must elect two co-chairs at the first meeting. The
co-chairs are not required to be members of the work group.
new text end
new text begin
(c) Meetings may be conducted remotely or in person or a combination of remotely and
in person.
new text end
new text begin
(d) Commission staff must provide meeting space, if needed, and administrative support
to the co-chairs of the work group.
new text end
new text begin Subd. 10. new text end
new text begin Compensation; lobbying; retaliation. new text end
new text begin
(a) Members of the work group serve
without compensation, except that legislators may receive per diem paid by their respective
bodies in accordance with the rules of their respective bodies.
new text end
new text begin
(b) Participation in the work group is not lobbying under Minnesota Statutes, chapter
10A.
new text end
new text begin
(c) An individual's employer or an organization or association of which an individual
is a member must not retaliate against the individual because of the individual's participation
in the work group.
new text end
new text begin Subd. 11. new text end
new text begin Expiration. new text end
new text begin
The work group expires June 30, 2028.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3. new text begin AUTHORIZING USE OF MONEY IN THE LCPR ACCOUNT.
new text end
new text begin
(a) For purposes of this section, the terms used in section 2 have the same meaning when
the terms are used in this section and "work group" means the work group established under
section 2.
new text end
new text begin
(b) The LCPR account may be used:
new text end
new text begin
(1) for independent actuarial cost assessments for the commission; and
new text end
new text begin
(2) with the consent of the chair, vice chair, or secretary of the commission, to pay costs
incurred by the executive director, on behalf of the commission, to retain experts, including
attorneys and consultants, to advise the work group on topics on which no state agency
personnel have expertise, including but not limited to tax-deferred options for setting aside
compensation to pay for health insurance coverage during periods of duty disability or
retirement and the application of the VA disability schedule to injuries and illness based on
which a member of the police and fire plan has applied for duty disability benefits.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 13
SPECIAL LEGISLATION
Section 1. new text begin MISSING IRAP ACCOUNT OF AN ELIGIBLE PERSON.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Board of trustees" has the meaning given in Minnesota Statutes, section 354B.20,
subdivision 11.
new text end
new text begin
(c) "IRAP" means the higher education individual retirement account plan established
by Minnesota Statutes, chapter 354B.
new text end
new text begin
(d) "MN State" means Minnesota State Colleges and Universities.
new text end
new text begin Subd. 2. new text end
new text begin Location of IRAP account required. new text end
new text begin
(a) Notwithstanding any state law to the
contrary, MN State must locate the IRAP account of the eligible person described in
paragraph (b) to which contributions deducted from the eligible person's pay in 1991 through
1994 were deposited or pay the eligible person an amount of $30,000.
new text end
new text begin
(b) The eligible person is a person who:
new text end
new text begin
(1) was employed by Winona State University from July 1, 1991, to June 30, 1996; and
new text end
new text begin
(2) has copies of pay stubs showing payroll deduction contributions to the IRAP dated
December 27, 1991; March 20, 1992; August 21, 1992; March 5, 1993; and April 16, 1993;
in amounts of $18.72 or $19.93, which must be considered as adequate proof that payroll
deduction contributions were taken each pay period beginning September 3, 1991, to October
31, 1994, for deposit into the eligible person's IRAP account.
new text end
new text begin
(c) No later than 60 days after the effective date of this section, the board of trustees
must either:
new text end
new text begin
(1) locate the eligible person's IRAP account to which payroll deduction contributions
were deposited and provide the eligible person with information regarding the individual
or entity holding the IRAP account, an accounting of the amounts contributed and investment
earnings thereon, and instructions on how the eligible person can access the account; or
new text end
new text begin
(2) pay the eligible person an amount equal to $30,000.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2. new text begin PUBLIC EMPLOYEES RETIREMENT ASSOCIATION GENERAL
EMPLOYEES RETIREMENT PLAN; SERVICE CREDIT PURCHASE BY AN
ELIGIBLE EMPLOYEE.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
For purposes of this section, the following terms have the
meanings given:
new text end
new text begin
(1) "city" means the city of Minneapolis;
new text end
new text begin
(2) "executive director" means the executive director of the Public Employees Retirement
Association;
new text end
new text begin
(3) "fund" means the general employees retirement fund administered by the Public
Employees Retirement Association; and
new text end
new text begin
(4) "general plan" means the general employees retirement plan of the Public Employees
Retirement Association.
new text end
new text begin Subd. 2. new text end
new text begin Authorization. new text end
new text begin
(a) Notwithstanding any state law to the contrary, an eligible
person described in subdivision 3 is entitled to:
new text end
new text begin
(1) have the city pay the amount required under subdivision 5, paragraph (a), on the
eligible person's behalf; and
new text end
new text begin
(2) upon the city making the payments required under subdivision 5, paragraphs (a) and
(b), receive credit for allowable service in the general plan for the periods of service described
in subdivision 4.
new text end
new text begin
(b) Upon receiving the payments described in subdivision 5, the executive director must
credit the eligible person with allowable service for the periods of service described in
subdivision 4.
new text end
new text begin Subd. 3. new text end
new text begin Eligible person. new text end
new text begin
An eligible person is a person who:
new text end
new text begin
(1) was initially employed by the city on April 26, 2016, in the fleet services division
of the public works department;
new text end
new text begin
(2) received salary for periods of employment with the city that occurred beginning May
29, 2016, through November 4, 2022, and during portions of those periods of employment
the city failed to deduct employee contributions and make employer contributions as required
by Minnesota Statutes, section 353.27; and
new text end
new text begin
(3) terminated employment with the city on November 4, 2022.
new text end
new text begin Subd. 4. new text end
new text begin Periods of uncredited prior service. new text end
new text begin
The periods of uncredited prior service
available for purchase are:
new text end
new text begin
(1) May 29, 2016, through October 15, 2016;
new text end
new text begin
(2) April 11, 2017, through October 10, 2017; and
new text end
new text begin
(3) April 27, 2018, through November, 24, 2018.
new text end
new text begin Subd. 5. new text end
new text begin Payment by employer. new text end
new text begin
(a) On behalf of the eligible person, the city must pay
to the fund an amount equal to the total amount of employee contributions that would have
been deducted from the eligible person's salary and paid to the fund based on the eligible
person's salary for each period of employment described in subdivision 4, plus interest
compounded annually at the applicable annual rate or rates specified in Minnesota Statutes,
section 356.59, subdivision 3, from the date each employee contribution deduction should
have been paid until the date the payment is made.
new text end
new text begin
(b) The city must pay to the fund an amount equal to the total amount of employer
contributions that the city would have made to the fund based on the eligible person's salary
for each period of employment described in subdivision 4, plus interest compounded annually
at the applicable annual rate or rates specified in Minnesota Statutes, section 356.59,
subdivision 3, from the date each employer contribution should have been paid until the
date the payment is made.
new text end
new text begin
(c) The executive director must determine the amount of the payments required under
paragraphs (a) and (b) and notify the city and the eligible person regarding the amount and
the basis for determining the amount.
new text end
new text begin
(d) The city must make the payments required under paragraphs (a) and (b) in a lump
sum no later than 60 days after the date on which the executive director notifies the city
under paragraph (c).
new text end
new text begin Subd. 6. new text end
new text begin Collection of unpaid amounts. new text end
new text begin
If the city fails to make all of the payments
required by subdivision 5, the executive director must follow the procedures in Minnesota
Statutes, section 353.28, subdivision 6, to collect the amount not paid.
new text end
new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end
new text begin
This section is effective upon approval
by the Minneapolis City Council and compliance with Minnesota Statutes, section 645.021.
new text end
ARTICLE 14
STATE BOARD OF INVESTMENT
Section 1.
Minnesota Statutes 2025 Supplement, section 11A.04, is amended to read:
11A.04 DUTIES AND POWERS; APPROPRIATION.
The state board shall:
(1) Act as trustees for each fund for which it invests or manages money in accordance
with the standard of care set forth in section 11A.09 if state assets are involved and in
accordance with chapter 356A if pension assets are involved.
(2) Formulate policies and procedures deemed necessary and appropriate to carry out
its functions. Procedures adopted by the new text begin state new text end board must allow fund beneficiaries and
members of the public to become informed of proposed board actions. Procedures and
policies of the new text begin state new text end board are not subject to the Administrative Procedure Act.
(3) Employ an executive director as provided in section 11A.07.
(4) deleted text begin Employdeleted text end new text begin Retainnew text end investment advisors and consultants as it deems necessary.
(5) Prescribe policies concerning personal investments of all employees of the new text begin state
new text end board to prevent conflicts of interest.
(6) Maintain a record of its proceedings.
(7) As it deems necessary, establish advisory committees subject to section 15.059 to
assist the new text begin state new text end board in carrying out its duties.
(8) Not permit state funds to be used for the underwriting or direct purchase of municipal
securities from the issuer or the issuer's agent.
(9) Direct the commissioner of management and budget to sell property other than money
that has escheated to the state when the new text begin state new text end board determines that sale of the property is
in the best interest of the state. Escheated property must be sold to the highest bidder in the
manner and upon terms and conditions prescribed by the new text begin state new text end board.
(10) Undertake any other activities necessary to implement the duties and powers set
forth in this section.
(11) Establish a formula or formulas to measure management performance and return
on investment. Public pension funds in the state shall utilize the formula or formulas
developed by the state board.
(12) Except as otherwise provided in article XI, section 8, of the Constitution of the state
of Minnesota, deleted text begin employdeleted text end new text begin retainnew text end , at its discretion, qualified deleted text begin privatedeleted text end new text begin externalnew text end firms to invest deleted text begin anddeleted text end new text begin ,new text end
managenew text begin , or provide services with respect tonew text end the assets of funds over which the state board
has investment management responsibility. deleted text begin There is annually appropriated to the state board,
from the assets of the funds for which the state board utilizes a private investment manager,
sums sufficient to pay the costs of employing private firms. Each year, by January 15, the
board shall report to the governor and legislature on the cost and the investmentdeleted text end new text begin The state
board must include in the report required under section 11A.07, subdivision 4, clause (8),
the management fees paid under this clause and thenew text end performance of each investment manager
deleted text begin employeddeleted text end new text begin retainednew text end by the new text begin state new text end board.
(13) Adopt an investment policy statement that includes investment objectives, asset
allocation, and the investment management structure for the retirement fund assets under
its control. The statement may be revised at the discretion of the state board. The state board
shall seek the advice of the council regarding its investment policy statement. Adoption of
the statement is not subject to chapter 14.
(14) Adopt a compensation plan setting the terms and conditions of employment for
unclassified employees of the state board pursuant to section 43A.18, subdivision 3b.
(15) Contract, as necessary, with the board of trustees of the Minnesota State Colleges
and Universities System for the provision of investment review and selection services under
section 354B.25, subdivision 3, and arrange for the receipt of payment for those services.
There is annually appropriated to the state board, from the assets of the funds for which
the state board provides investment services, sums sufficient to pay the deleted text begin costs of all necessarydeleted text end
expenses deleted text begin for the administrationdeleted text end of the new text begin state new text end boardnew text begin , including any fees or expenses charged
by advisors, consultants, or external firmsnew text end . These sums will be deposited in the State Board
of Investment operating account, which must be established by the commissioner of
management and budgetnew text begin in the special revenue fundnew text end .
Sec. 2.
Minnesota Statutes 2025 Supplement, section 11A.07, subdivision 4, is amended
to read:
Subd. 4.
Duties and powers.
The new text begin executive new text end director, at the direction of the state board,
shall:
(1) plan, direct, coordinate, and execute administrative and investment functions in
conformity with the policies and directives of the state board and the requirements of this
chapter and of chapter 356A;
(2) prepare and submit biennial and annual budgets to the new text begin state new text end board and with the
approval of the new text begin state new text end board submit the budgets to the Department of Management and Budget;
(3) employ professional and clerical staff as necessary;
(4) report to the state board on all operations under the new text begin executive new text end director's control and
supervision;
(5) maintain accurate and complete records of securities transactions and official
activities;
(6) establish a policy, which is subject to state board approval, relating to the purchase
and sale of securities on the basis of competitive offerings or bids;
(7) cause securities acquired to be kept in the custody of the commissioner of management
and budget or other depositories consistent with chapter 356A, as the state board deems
appropriate;
(8) prepare and file with the director of the Legislative Reference Library a report
summarizing the activities of the state board, the council, and the new text begin executive new text end director during
the preceding fiscal year;
(9) include on the state board's website its annual report and an executive summary of
its quarterly reports;
(10) require state officials from any department or agency to produce and provide access
to any financial documents the state board deems necessary in the conduct of its investment
activities;
new text begin
(11) with respect to any fund for which the state board provides investment services,
modify the billing procedure or apportionment of expenses under subdivision 5 to the extent
the executive director determines is appropriate or necessary, with any such modification
consistent with the applicable duties in this chapter and section 356A.04;
new text end
deleted text begin (11)deleted text end new text begin (12)new text end receive and expend legislative appropriations; and
deleted text begin (12)deleted text end new text begin (13)new text end undertake any other activities necessary to implement the duties and powers
set forth in this subdivision consistent with chapter 356A.
Sec. 3.
Minnesota Statutes 2024, section 11A.07, subdivision 5, is amended to read:
Subd. 5.
Apportionment of expenses.
new text begin (a) new text end The annual expenses incurred by the deleted text begin State
Board of Investment willdeleted text end new text begin state board, including any fees or expenses charged by advisors,
consultants, or external firms, mustnew text end be apportioned among deleted text begin the state general fund, the
retirement funds administered by the Minnesota State Retirement System, Public Employees
Retirement Association, and Teachers Retirement Association, anddeleted text end all deleted text begin otherdeleted text end funds deleted text begin as follows:deleted text end new text begin
for which the state board provides investment services, in accordance with this subdivision.
There is annually appropriated to the state board, from the assets of all funds for which the
state board provides investment services, sums sufficient to pay the apportioned expenses.
These sums must be deposited in the State Board of Investment operating account, which
must be established by the commissioner of management and budget in the special revenue
fund. Those sums must be apportioned as follows:
new text end
deleted text begin
(1) on a biennial basis, the State Board of Investment, in accordance with biennial budget
procedures established by the commissioner of management and budget, may request a
direct appropriation that represents the portion of the State Board of Investment expenses
necessary to provide investment services to the state general fund. This appropriation must
be deposited in the State Board of Investment operating account;
deleted text end
deleted text begin (2)deleted text end new text begin (1)new text end the executive director shall new text begin first new text end apportion deleted text begin the actualdeleted text end new text begin expenses allocable solely
to a specific fund or in the case of multiple funds, among the funds proportionally based on
weighted average assets under management during the fiscal year; and
new text end
new text begin (2) next, the executive director shall apportion the new text end expenses incurred by the deleted text begin State Board
of Investmentdeleted text end new text begin state boardnew text end , less the deleted text begin charge to the state general funddeleted text end new text begin charges apportioned
under clause (1) and accounting for any modification made pursuant to subdivision 4, clause
(11)new text end , among the funds deleted text begin whose assets are invested by the State Board of Investment, with the
exception of the state general fund,deleted text end new text begin for which the state board provides investment services,
with such expenses allocated proportionallynew text end based on the weighted average assets under
management during the fiscal year. deleted text begin The amounts necessary to pay these charges are
apportioned from the investment earnings of each fund. Receipts must be credited to the
State Board of Investment operating account;
deleted text end
deleted text begin (3)deleted text end new text begin (b)new text end The deleted text begin actualdeleted text end expenses apportioned and charged to the fundsnew text begin under paragraph (a)new text end ,
with the exception of deleted text begin the state general fund anddeleted text end the retirement funds administered by the
Minnesota State Retirement System, Public Employees Retirement Association, and Teachers
Retirement Association, must be calculated, billed, and paid new text begin at least new text end on a quarterly basis in
accordance with procedures for interdepartmental payments established by the commissioner
of management and budgetdeleted text begin ; anddeleted text end new text begin . Sums received to pay the expenses must be deposited in
the operating account under section 11A.04.
new text end
deleted text begin (4)deleted text end new text begin (c)new text end The annual estimated expenses to be incurred by the deleted text begin State Board of Investmentdeleted text end new text begin
state boardnew text end that will be payable by the retirement funds administered by the Minnesota State
Retirement System, Public Employees Retirement Association, and Teachers Retirement
Association must be deposited in the State Board of Investment operating accountnew text begin under
section 11A.04new text end onnew text begin or aboutnew text end the first business day of each fiscal year. A reconciliation of the
deleted text begin actualdeleted text end expensesnew text begin allocable to each retirement fundnew text end compared to thenew text begin applicablenew text end estimated deleted text begin costsdeleted text end new text begin
expensesnew text end must occurnew text begin at least annuallynew text end at the end of deleted text begin eachdeleted text end new text begin thenew text end fiscal year deleted text begin with any surplus ordeleted text end new text begin .
Anynew text end deficit deleted text begin being credited or debited to each of the respective funds. The State Board of
Investment must present a statement of accrued actualdeleted text end new text begin determined by such reconciliation
is due and payable to the State Board of Investment operating account promptly upon notice
of the amount due. Any fiscal year-end surplus may, at the executive director's discretion,
be retained in the operating account and credited against the following fiscal year's estimatednew text end
expenses deleted text begin todeleted text end new text begin ofnew text end eachnew text begin respective retirementnew text end fund deleted text begin at the end of each quarter during each fiscal
yeardeleted text end .new text begin The executive director must refund to the respective retirement fund any portion of
any surplus not credited against the following fiscal year's estimated expenses.
new text end
Sec. 4.
Laws 2025, chapter 39, article 1, section 8, is amended to read:
Sec. 8. STATE BOARD OF INVESTMENT
|
$ |
139,000 |
$ |
deleted text begin
139,000 deleted text end new text begin -0- new text end |
||
ARTICLE 15
ADMINISTRATIVE, TECHNICAL, AND CONFORMING CHANGES RELATED
TO VOLUNTEER AND PAID ON-CALL FIREFIGHTERS
Section 1.
Minnesota Statutes 2024, section 6.496, is amended to read:
6.496 VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS; STATE BOARD
OF INVESTMENT OPTIONS.
(a) Annually, on or before March 1, the state auditor shall provide all deleted text begin volunteerdeleted text end firefighter
relief associations with recent and historic investment performance results of the various
accounts of the Minnesota supplemental investment fund and information on the process
and procedures for a deleted text begin firefightersdeleted text end new text begin firefighternew text end relief association to utilize the Minnesota
supplemental investment fund as an investment option.
(b) Annually, on or before March 1, the state auditor shall provide all deleted text begin volunteerdeleted text end firefighter
relief associations with basic information on the statewide deleted text begin lump-sumdeleted text end volunteer firefighter
plan, that a fire department has the option annually to join the retirement plan, and that, if
the fire department joins the retirement plan, future asset investments would be the
responsibility of the State Board of Investment.
(c) The information provision required by paragraphs (a) and (b) may be provided in an
electronic or other format if the state auditor determines that the format is reasonably
accessible by a preponderance of deleted text begin volunteerdeleted text end firefighter relief associations.
Sec. 2.
Minnesota Statutes 2024, section 11A.17, subdivision 1, is amended to read:
Subdivision 1.
Purpose; accounts; continuation.
(a) The purpose of the supplemental
investment fund is to provide an investment vehicle for the assets of various public retirement
plans and funds.
(b) The state board shall determine and make available investment accounts within the
supplemental investment fund. These accounts shall include an appropriate array of
diversified investment options for participants of the public retirement plans under
subdivision 5.
(c) The assets of the supplemental investment fund must be invested by the state board
in types of investments permitted under section 11A.24.
(d) The state board shall make available a volunteer firefighter account for the statewide
deleted text begin lump-sumdeleted text end volunteer firefighter plan under section 353G.02.
Sec. 3.
Minnesota Statutes 2024, section 144F.01, subdivision 2, is amended to read:
Subd. 2.
Authority to establish.
(a) Two or more political subdivisions may establish,
by resolution of their governing bodies, a special taxing district to provide fire protection
or emergency medical services, or both, in the area of the district, comprising the jurisdiction
of each of the political subdivisions forming the district. For a county that participates in
establishing a district, the county's jurisdiction comprises the unorganized territory of the
county that it designated in its resolution for inclusion in the district. The area of the special
taxing district need not be contiguous or its boundaries continuous.
(b) Before establishing a district under this section, the participating political subdivisions
must enter into an agreement that specifies how any liabilities, other than debt issued under
subdivision 6, and assets of the district will be distributed if the district is dissolved. The
agreement may also include other terms, including a method for apportioning the levy of
the district among participating political subdivisions under subdivision 4, paragraph (b),
as the political subdivisions determine appropriate. The agreement must be adopted no later
than upon passage of the resolution establishing the district under paragraph (a), but may
be later amended by agreement of each of the political subdivisions participating in the
district.
(c) If two or more political subdivisions that currently operate separate fire departments
seek to merge fire departments into one fire department, or if a political subdivision with
an existing fire department requests to join a special taxing district with an established fire
department, the resolution under paragraph (a) or agreement under paragraph (b) must
specify which, if any, deleted text begin volunteerdeleted text end firefighter deleted text begin pension plandeleted text end new text begin relief association or account in the
statewide volunteer firefighter plan new text end is associated with the district. A special taxing district
that operates a fire department under this section may be associated with only one deleted text begin firefightersdeleted text end new text begin
firefighternew text end relief association or one account in the statewide volunteer firefighter plan at one
time.
(d) If the special taxing district includes the operation of a fire department, it must file
its resolution establishing the fire protection special taxing district, and any agreements
required for the establishment of the special taxing district, with the commissioner of revenue,
including any subsequent amendments. If the resolution or agreement does not include
sufficient information defining the fire department service area of the fire protection special
taxing district, the secretary of the district board must file a written statement with the
commissioner defining the fire department service area.
Sec. 4.
Minnesota Statutes 2025 Supplement, section 151.37, subdivision 12, is amended
to read:
Subd. 12.
Administration of opiate antagonists for drug overdose.
(a) A licensed
physician, a licensed advanced practice registered nurse authorized to prescribe drugs
pursuant to section 148.235, or a licensed physician assistant may authorize the following
individuals to administer opiate antagonists, as defined in section 604A.04, subdivision 1:
(1) an emergency medical responder registered pursuant to section 144E.27;
(2) a peace officer as defined in section 626.84, subdivision 1, paragraphs (c) and (d);
(3) correctional employees of a state or local political subdivision;
(4) staff of community-based health disease prevention or social service programs;
(5) a volunteer new text begin or paid on-call new text end firefighter;
(6) a nurse or any other personnel employed by, or under contract with, a postsecondary
institution or a charter, public, or private school; and
(7) transit rider investment program personnel authorized under section 473.4075.
(b) For the purposes of this subdivision, opiate antagonists may be administered by one
of these individuals only if:
(1) the licensed physician, licensed physician assistant, or licensed advanced practice
registered nurse has issued a standing order to, or entered into a protocol with, the individual;
and
(2) the individual has training in the recognition of signs of opiate overdose and the use
of opiate antagonists as part of the emergency response to opiate overdose.
(c) Nothing in this section prohibits the possession and administration of naloxone
pursuant to section 604A.04.
(d) Notwithstanding section 148.235, subdivisions 8 and 9, a licensed practical nurse is
authorized to possess and administer according to this subdivision an opiate antagonist in
a school setting.
Sec. 5.
Minnesota Statutes 2025 Supplement, section 181.101, is amended to read:
181.101 WAGES; HOW OFTEN PAID.
(a) Except as provided in paragraph (b), every employer must pay all wages, including
salary, earnings, and gratuities earned by an employee at least once every 31 days and all
commissions earned by an employee at least once every three months, on a regular payday
designated in advance by the employer regardless of whether the employee requests payment
at longer intervals. Unless paid earlier, the wages earned during the first half of the first
31-day pay period become due on the first regular payday following the first day of work.
If wages or commissions earned are not paid, the commissioner of labor and industry or the
commissioner's representative may serve a demand for payment on behalf of an employee.
In addition to other remedies under section 177.27, if payment of wages is not made within
ten days of service of the demand, the commissioner may charge and collect the wages
earned at the employee's rate or rates of pay or at the rate or rates required by law, including
any applicable statute, regulation, rule, ordinance, government resolution or policy, contract,
or other legal authority, whichever rate of pay is greater, and a penalty in the amount of the
employee's average daily earnings at the same rate or rates for each day beyond the ten-day
limit following the demand. If payment of commissions is not made within ten days of
service of the demand, the commissioner may charge and collect the commissions earned
and a penalty equal to 1/15 of the commissions earned but unpaid for each day beyond the
ten-day limit. Money collected by the commissioner must be paid to the employee concerned.
This section does not prevent an employee from prosecuting a claim for wages. This section
does not prevent a school district, other public school entity, or other school, as defined
under section 120A.22, from paying any wages earned by its employees during a school
year on regular paydays in the manner provided by an applicable contract or collective
bargaining agreement, or a personnel policy adopted by the governing board. For purposes
of this section, "employee" includes a person who performs agricultural labor as defined in
section 181.85, subdivision 2. For purposes of this section, wages are earned on the day an
employee works. This section provides a substantive right for employees to the payment of
wages, including salary, earnings, and gratuities, as well as commissions, in addition to the
right to be paid at certain times.
(b) An employer of a deleted text begin volunteer ordeleted text end paid on-call firefighter, as defined in section 424A.001,
subdivision deleted text begin 10deleted text end new text begin 10anew text end , a member of an organized first responder squad that is formally
recognized by a political subdivision in the state, or a volunteer ambulance driver or attendant
must pay all wages earned by the deleted text begin volunteerdeleted text end new text begin paid on-callnew text end firefighter, first responder, or
volunteer ambulance driver or attendant at least once every 31 days, unless the employer
and the employee mutually agree upon payment at longer intervals.
Sec. 6.
Minnesota Statutes 2024, section 299K.03, subdivision 3, is amended to read:
Subd. 3.
Appointed members.
(a) The governor shall appoint 18 additional members
to the commission.
(b) The 18 appointed members must include one representative each of fire chiefs,
professional firefighters, volunteernew text begin or paid on-callnew text end firefighters, fire marshals, law enforcement
personnel, emergency medical personnel, health professionals, wastewater treatment
operators, labor, emergency managers, and local elected officials, three representatives of
community groups or the public, and four representatives from business and industry, at
least one of whom must represent small business.
(c) At least four of the appointed members must reside outside the metropolitan area,
as defined in section 473.121, subdivision 2.
(d) The appointed members must be appointed, serve, and be compensated in the manner
provided in section 15.059.
Sec. 7.
Minnesota Statutes 2024, section 299N.02, subdivision 1, is amended to read:
Subdivision 1.
Membership.
Notwithstanding any provision of chapter 15 to the contrary,
the Board of Firefighter Training and Education consists of the following members:
(1) five members representing the Minnesota State Fire Department Association, four
of whom must be volunteer new text begin or paid on-call new text end firefighters and one of whom may be a full-time
firefighter, appointed by the governor;
(2) two members representing the Minnesota State Fire Chiefs Association, one of whom
must be a volunteer fire chief, appointed by the governor;
(3) two members representing the Minnesota Professional Fire Fighters, appointed by
the governor;
(4) two members representing Minnesota home rule charter and statutory cities, appointed
by the governor;
(5) two members representing Minnesota towns, appointed by the governor;
(6) the commissioner of public safety or the commissioner's designee; and
(7) one public member not affiliated or associated with any member or interest represented
in clauses (1) to (6), appointed by the governor.
The Minnesota State Fire Department Association shall recommend five persons to be the
members described in clause (1), the Minnesota State Fire Chiefs Association shall
recommend two persons to be the members described in clause (2), the Minnesota
Professional Fire Fighters shall recommend two persons to be the members described in
clause (3), the League of Minnesota Cities shall recommend two persons to be the members
described in clause (4), and the Minnesota Association of Townships shall recommend two
persons to be the members described in clause (5). In making the appointments the governor
shall try to achieve representation from all geographic areas of the state.
Sec. 8.
Minnesota Statutes 2024, section 352.98, subdivision 1, is amended to read:
Subdivision 1.
Plan created.
This section must be administered by the executive director
of the system with the advice and consent of the board of directors. The executive director
shall establish a plan or plans, known as health care savings plans, through which an officer
or employee of the state or of a political subdivision, including officers or employees covered
by a plan or fund specified in chapter 353D, 354B, 354D, 424A, or section 356.20,
subdivision 2, may save to cover health care costs. For purposes of this section, a volunteer
new text begin or paid on-call new text end firefighter is an employee. The executive director shall make available one
or more trusts, including a governmental trust or governmental trusts, authorized under the
Internal Revenue Code to be eligible for tax-preferred or tax-free treatment through which
employers and employees can save to cover health care costs.
Sec. 9.
Minnesota Statutes 2025 Supplement, section 353D.01, subdivision 2, is amended
to read:
Subd. 2.
Eligibility.
(a) Eligibility to participate in the plan is available to:
(1) any elected or appointed local government official of a governmental subdivision
who elects to participate in the plan under section 353D.02, subdivision 1, and who, for the
service rendered to a governmental subdivision, is not a member of the association within
the meaning of section 353.01, subdivision 7;
(2) physicians who, if they did not elect to participate in the plan under section 353D.02,
subdivision 2, would meet the definition of member under section 353.01, subdivision 7;
(3) basic and advanced life-support emergency medical service personnel who are
employed by any public ambulance service that elects to participate under section 353D.02,
subdivision 3;
(4) members of a municipal rescue squad associated with the city of Litchfield in Meeker
County, or of a county rescue squad associated with Kandiyohi County, if an independent
nonprofit rescue squad corporation, incorporated under chapter 317A, performing emergency
management services, and if not affiliated with a fire department or ambulance service and
if its members are not eligible for membership in that fire department's or ambulance service's
relief association or comparable pension plan;
(5) members of the municipal rescue squad associated with the city of Eden Valley in
Stearns and Meeker Counties who are not eligible for membership in the police and fire
retirement plan or a firefighter relief association affiliated with the city and who elect to
participate in the plan under section 353D.02, subdivision 4, paragraph (b);
(6) employees of the Port Authority of the city of St. Paul who elect to participate in the
plan under section 353D.02, subdivision 5, and who are not members of the association
under section 353.01, subdivision 7;
(7) city managers who elected to be excluded from the general employees retirement
plan of the association under section 353.028 and who elected to participate in the deleted text begin public
employees defined contributiondeleted text end plan under section 353.028, subdivision 3, paragraph (b);
(8) volunteer or deleted text begin emergencydeleted text end new text begin paidnew text end on-call firefighters serving in a municipal fire department
or an independent nonprofit firefighting corporation who are not covered by the police and
fire retirement plan deleted text begin and who are not covered bydeleted text end new text begin ornew text end a deleted text begin firefightersdeleted text end new text begin firefighternew text end relief association
and who elect to participate in the deleted text begin public employees defined contributiondeleted text end plan;
(9) any elected county sheriff who is a former member of the police and fire plan, is
receiving a retirement annuity as provided under section 353.651, and does not have previous
employment with the county for which the sheriff was elected; and
(10) persons appointed to serve on a board or commission of a governmental subdivision
or an instrumentality thereof.
(b) Individuals otherwise eligible to participate in the plan under this subdivision who
are currently covered by a public or private pension plan because of their employment or
provision of services are not eligible to participate in the plan.
(c) A former participant is a person who has terminated eligible employment or service
and has not withdrawn the value of the person's individual account.
Sec. 10.
Minnesota Statutes 2025 Supplement, section 353D.02, subdivision 7, is amended
to read:
Subd. 7.
deleted text begin Certaindeleted text end Volunteer new text begin or paid on-call new text end firefighters.
Volunteer or new text begin paid new text end on-call
firefighters who are serving as members of a municipal fire department or an independent
nonprofit firefighting corporation and who are not covered for that firefighting service by
the public employees police and fire retirement plan under sections 353.63 to 353.68, by a
firefighters relief association under chapter 424A, or by the statewide volunteer firefighter
retirement plan under chapter 353G may elect to participate in the plan within the first 30
days of commencing service by completing and signing a membership election on a form
prescribed by the executive director of the association. The membership election must be
filed with the association within 60 days of commencing service. An eligible firefighter's
election is irrevocable. No employer contribution is payable by the fire department or the
firefighting corporation unless the municipal governing body or the firefighting corporation
governing body, whichever applies, ratifies the membership election.
Sec. 11.
Minnesota Statutes 2024, section 353D.03, subdivision 6, is amended to read:
Subd. 6.
Volunteer new text begin or paid on-call new text end firefighters.
(a) Unless paragraph (b) applies, a
volunteer or deleted text begin emergencydeleted text end new text begin paidnew text end on-call firefighter who elects to participate in the plan shall
contribute at least 7.5 percent of any compensation received for firefighting services.
(b) If the municipality or the independent nonprofit firefighting corporation ratified the
election of plan coverage under section 353D.02, subdivision 6, the volunteer new text begin or paid on-call
new text end firefighter and the employing unit shall contribute in total an amount equal at least to 7.5
percent of any compensation received for firefighting services.
Sec. 12.
Minnesota Statutes 2024, section 353G.18, subdivision 4, is amended to read:
Subd. 4.
Termination procedures.
(a) The participation of a departing entity in the plan
and the coverage of the departing firefighters by the plan deleted text begin shalldeleted text end new text begin mustnew text end cease as of the date the
requirements in this subdivision are completed and all assets credited to the entity's account
are distributed.
(b) The governing board of the departing entity deleted text begin shalldeleted text end new text begin mustnew text end adopt the resolutions under
subdivision 5 and deliver the resolutions to the executive director.
(c) The executive director deleted text begin shalldeleted text end new text begin mustnew text end :
(1) fully vest all departing firefighters as of the termination date and consider each
departing firefighter 100 percent vested in the pension benefit accrued by the departing
firefighter under the entity's account as of the termination date;
(2) determine the present value of each departing firefighter's accrued benefit as of the
termination date, taking into account the benefit level under section 353G.11 or otherwise
in effect for the departing firefighter as determined by the executive director;
(3) determine, as of the termination date, the value of accrued liabilities, including
administrative expenses incurred or reasonably anticipated to be incurred through the
distribution date, and the value of assets attributable to the entity's account; and
(4) to the extent necessary to minimize the risk of investment losses between the
termination date and the distribution date, reinvest the assets credited to the entity's account
in low-risk investments.
(d) If the entity's account has assets in excess of accrued liabilities, the executive director
deleted text begin shalldeleted text end new text begin mustnew text end allocate the excess among all new text begin active new text end departing firefighters in the same proportion
that the present value of the accrued benefit for each new text begin active new text end departing firefighter bears to
the total present value of the accrued benefits of all new text begin active new text end departing firefighters, and each
new text begin active new text end departing firefighter's benefit, as determined under paragraph (c), clause (2), deleted text begin shalldeleted text end new text begin
mustnew text end be increased by the new text begin active new text end departing firefighter's share of the excess.
(e) The executive director deleted text begin shalldeleted text end new text begin mustnew text end , as soon as practicable after the termination date,
distribute to each departing firefighter, regardless of whether the departing firefighter has
attained age 50, the firefighter's benefit as calculated by the executive director under
paragraphs (c) and (d). The distribution deleted text begin shalldeleted text end new text begin mustnew text end be made in a lump sum, either as a
payment to the departing firefighter or as a direct rollover, if elected by the firefighter. If
the departing firefighter is deceased, then the firefighter's benefit deleted text begin shalldeleted text end new text begin mustnew text end be paid to the
firefighter's survivor under section 353G.12 or as a direct rollover, if elected by the survivor.
(f) The executive director deleted text begin shalldeleted text end new text begin mustnew text end pay supplemental benefits under section 424A.10,
but only to the extent that the executive director will be reimbursed under section 424A.10,
subdivision 3.
Sec. 13.
Minnesota Statutes 2025 Supplement, section 356.215, subdivision 8, is amended
to read:
Subd. 8.
Actuarial assumptions.
(a) The actuarial valuation must use the applicable
following investment return assumption:
| plan |
investment return assumption |
|
| general state employees retirement plan |
7% |
|
| correctional state employees retirement plan |
7 |
|
| State Patrol retirement plan |
7 |
|
| legislators retirement plan, and for the constitutional officers calculation of total plan liabilities |
0 |
|
| judges retirement plan |
7 |
|
| general public employees retirement plan |
7 |
|
| public employees police and fire retirement plan |
7 |
|
| local government correctional service retirement plan |
7 |
|
| teachers retirement plan |
7 |
|
| St. Paul teachers retirement plan |
7 |
|
| Bloomington Fire Department Relief Association |
6 |
|
| deleted text begin localdeleted text end monthly benefit deleted text begin volunteerdeleted text end firefighter relief associations |
5 |
|
| monthly benefit retirement plans in the statewide volunteer firefighter deleted text begin retirementdeleted text end plan |
6 |
(b) The actuarial valuation for each of the covered retirement plans listed in section
356.415, subdivision 2, and the St. Paul Teachers Retirement Fund Association must take
into account the postretirement adjustment rate or rates applicable to the plan as specified
in section 354A.29, subdivision 7, or 356.415, whichever applies.
(c) The actuarial valuation must use the applicable salary increase and payroll growth
assumptions found in the appendix to the standards for actuarial work. The appendix must
be updated whenever new assumptions have been approved or deemed approved under
subdivision 18.
(d) The assumptions set forth in the appendix to the standards for actuarial work continue
to apply, unless a different salary assumption or a different payroll increase assumption:
(1) has been proposed by the governing board of the applicable retirement plan;
(2) is accompanied by the concurring recommendation of the actuary retained under
section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most
recent actuarial valuation report if section 356.214 does not apply; and
(3) has been approved or deemed approved under subdivision 18.
Sec. 14.
Minnesota Statutes 2025 Supplement, section 356.215, subdivision 11, is amended
to read:
Subd. 11.
Amortization contributions.
(a) The actuarial valuation of each pension plan
listed in subdivision 8, paragraph (a), other than the legislators retirement plan, the
Bloomington Fire Department Relief Association, and the deleted text begin localdeleted text end monthly benefit deleted text begin volunteerdeleted text end
firefighter relief associations, must contain an exhibit indicating the additional annual
contribution sufficient to amortize on a level percent of payroll basis the unfunded actuarial
accrued liability resulting from any of the following changes, over the period specified for
that change, except that the pension plan's unfunded actuarial accrued liability as of July 1,
2024, must be amortized over a period that ends June 30, 2048:
(1) experience gain or loss: 15 years;
(2) assumption or method change: 20 years;
(3) benefit change for active members: 15 years;
(4) long-term benefit change for inactive members: 15 years;
(5) short-term benefit change for inactive members: the number of years during which
the benefit change will be in effect; and
(6) an annual contribution that is more or less than the actuarially determined contribution:
15 years.
(b) The amortization periods specified in paragraph (a) apply:
(1) unless the standards for actuarial work state otherwise;
(2) except that, for the legislators retirement plan, the additional annual contribution
sufficient to amortize the unfunded actuarial accrued liability must be calculated on a level
dollar basis with an amortization period of one year; and
(3) except that, for the State Patrol retirement plan, the public employees police and fire
retirement plan, and the Teachers Retirement Association, the unfunded actuarial accrued
liability resulting from benefit increases enacted in 2025 must be amortized over a period
that ends June 30, 2048.
Sec. 15.
Minnesota Statutes 2024, section 356.216, is amended to read:
356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL MONTHLY
VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS.
The provisions of section 356.215 that govern the contents of actuarial valuations apply
to the Bloomington Fire Department Relief Association and to any deleted text begin localdeleted text end monthly deleted text begin firefightersdeleted text end new text begin
firefighternew text end relief association required to make an actuarial report under this section, except
as follows:
(1) in lieu of the amortization date specified in section 356.215, subdivision 11, the
appropriate amortization target date specified in clause (2) or section 424A.093, subdivision
4, paragraph (c), must be used in calculating any required amortization contribution;
(2) for the Bloomington Fire Department Relief Association, any unfunded actuarial
accrued liability must be amortized on a level dollar basis by December 31 of the year
occurring 20 years after the year in which the unfunded actuarial accrued liability initially
occurred, and, if subsequent actuarial valuations for the Bloomington Fire Department Relief
Association indicate a net actuarial experience loss incurred during the year which ended
as of the day before the most recent actuarial valuation date, any unfunded actuarial accrued
liability due to that loss is to be amortized on a level dollar basis by December 31 of the
year occurring 20 years after the year in which the net actuarial experience loss occurred;
(3) in addition to the tabulation of active members and annuitants provided for in section
356.215, subdivision 13, the prospective annual service pensions under the benefit plan for
active members must be reported;
(4) actuarial valuations required under Laws 2013, chapter 111, article 5, section 39,
must be made annually and actuarial valuations required under section 424A.093, subdivision
2, must be made every four years or as frequently as required by generally accepted
accounting principles in the government sector, whichever frequency requirement is shorter;
(5) the actuarial balance sheet showing accrued assets valued at market value, actuarial
accrued liabilities, and the unfunded actuarial accrued liability must include the following
required reserves:
(i) for active members:
(A) retirement benefits or service pensions;
(B) disability benefits; and
(C) survivors' benefits;
(ii) for deferred annuitants' benefits;
(iii) for former members without vested rights;
(iv) for annuitants:
(A) retirement annuities or service pensions;
(B) disability annuities; and
(C) survivor benefits.
In addition to those required reserves, separate items must be shown for additional
benefits, if any, which may not be appropriately included in the reserves listed above; and
(6) actuarial valuations are due to be filed with the state auditor by the first day of the
seventh month after the end of the fiscal year which the actuarial valuation covers.
Sec. 16.
Minnesota Statutes 2024, section 356.401, subdivision 3, is amended to read:
Subd. 3.
Covered retirement plans.
The provisions of this section apply to the following
retirement plans:
(1) the legislators retirement plan, established by chapter 3A, including constitutional
officers as specified in that chapter;
(2) the general state employees retirement plan of the Minnesota State Retirement System,
established by chapter 352;
(3) the correctional state employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;
(4) the State Patrol retirement plan, established by chapter 352B;
(5) the unclassified state employees retirement program, established by chapter 352D;
(6) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353;
(7) the public employees police and fire plan of the Public Employees Retirement
Association, established by chapter 353;
(8) the public employees defined contribution plan, established by chapter 353D;
(9) the local government correctional service retirement plan of the Public Employees
Retirement Association, established by chapter 353E;
(10) the statewide deleted text begin lump-sumdeleted text end volunteer firefighter plan, established by chapter 353G;
(11) the Teachers Retirement Association, established by chapter 354;
(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
(13) the individual retirement account plan, established by chapter 354B;
(14) the higher education supplemental retirement plan, established by chapter 354C;
and
(15) the judges retirement fund, established by chapter 490.
Sec. 17.
Minnesota Statutes 2024, section 356.611, subdivision 6, is amended to read:
Subd. 6.
Covered retirement plan.
As used in this section, "covered retirement plan"
means any of the following plans:
(1) the legislator's retirement plan, established by chapter 3A, including constitutional
officers as specified in that chapter;
(2) the general state employees retirement plan of the Minnesota State Retirement System,
established by chapter 352;
(3) the correctional state employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;
(4) the State Patrol retirement plan, established by chapter 352B;
(5) the unclassified state employees retirement plan, established by chapter 352D;
(6) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353;
(7) the public employees police and fire retirement plan of the Public Employees
Retirement Association, established by chapter 353;
(8) the public employees defined contribution plan, established by chapter 353D;
(9) the local government correctional service retirement plan of the Public Employees
Retirement Association, established by chapter 353E;
(10) the statewide volunteer firefighter deleted text begin retirementdeleted text end plan, established by chapter 353G;
(11) the Teachers Retirement Association, established by chapter 354;
(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
(13) the higher education individual retirement account plan, established by chapter
354B;
(14) the higher education supplemental retirement plan, established by chapter 354C;
(15) a retirement plan of a deleted text begin volunteerdeleted text end firefighter deleted text begin retirementdeleted text end new text begin reliefnew text end association subject to
chapter 424A;
(16) the judges retirement plan, established by chapter 490; or
(17) the Bloomington Fire Department Relief Association governed by Laws 2013,
chapter 111, article 5, sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws
1965, chapter 446, as amended.
Sec. 18.
Minnesota Statutes 2024, section 356.635, subdivision 2a, is amended to read:
Subd. 2a.
Required distributions from defined contribution plans.
(a) This section
applies to any covered retirement plan that is a defined contribution plan, including but not
limited to the following:
(1) the unclassified state employees retirement plan, established by chapter 352D;
(2) the public employees defined contribution plan, established by chapter 353D;
(3) the defined contribution plan that is part of the statewide volunteer firefighter
deleted text begin retirementdeleted text end plan, established by chapter 353G;
(4) the higher education individuals retirement account plan, established by chapter
354B;
(5) the higher education supplemental retirement plan, established by chapter 354C; and
(6) a defined contribution relief association, as defined under section 424A.001,
subdivision 1c.
(b) If the participant dies before the required minimum distribution begins, the
participant's account must be distributed in a lump sum no later than as follows:
(1) if the participant's account balance is payable to an eligible designated beneficiary,
the distribution must be made by December 31 of the calendar year immediately following
the calendar year in which the participant died. If the eligible designated beneficiary is the
surviving spouse, the surviving spouse may elect to delay payment until December 31 of
the calendar year in which the participant would have attained the participant's required
beginning date. deleted text begin Effective for calendar years beginning after December 31, 2023,deleted text end A surviving
spouse who is the member's sole designated beneficiary may elect to be treated as if the
surviving spouse were the member as provided under section 401(a)(9)(B)(iv) of the Internal
Revenue Code;
(2) if the participant's account balance is payable to a beneficiary that is not a designated
beneficiary, the participant's account must be distributed by December 31 of the calendar
year containing the fifth anniversary of the participant's death; or
(3) if the participant's account balance is payable to a designated beneficiary who is not
an eligible designated beneficiary, the participant's account must be distributed by December
31 of the calendar year containing the tenth anniversary of the participant's death.
(c) Upon the death of the participant after distribution of the participant's account balance
begins, any remaining portion of the participant's account balance shall continue to be
distributed at least as rapidly as under the method of distribution in effect at the time of the
participant's death, provided that the portion of the participant's account balance payable to
a designated beneficiary who is not an eligible designated beneficiary must be distributed
in its entirety by December 31 of the calendar year containing the tenth anniversary of the
participant's death.
(d) Upon the death of an eligible designated beneficiary, or the attainment of the age of
majority of an eligible designated beneficiary who is a minor child of the participant, before
distribution of the participant's entire account balance under paragraph (b) or (c), the
remainder of the participant's account balance shall be distributed by December 31 of the
calendar year containing the tenth anniversary of the eligible designated beneficiary's death,
or by December 31 of the calendar year in which the child attains the age of majority plus
ten years, as applicable.
deleted text begin
(e) Notwithstanding any other provisions of this subdivision, a participant or beneficiary,
who would have been required to receive required minimum distributions in 2020 (or paid
in 2021 for the 2020 calendar year for a participant with a required beginning date of April
1, 2021) but for the enactment of section 401(a)(9)(I) of the Internal Revenue Code, and
who would have satisfied that requirement by receiving a distribution that satisfies the
required minimum distribution for 2020, will receive that distribution unless the participant
or beneficiary chooses not to receive the distribution. Solely for purposes of applying the
direct rollover provisions of section 356.633, such distributions will be treated as eligible
rollover distributions in 2020.
deleted text end
Sec. 19.
Minnesota Statutes 2024, section 356.65, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
For purposes of this section, unless the context clearly
indicates otherwise, each of the following terms has the meaning given to it:
(a) "Public pension fund" means any public pension plan as defined in section 356.63,
paragraph (b), and any deleted text begin Minnesota firefightersdeleted text end new text begin firefighternew text end relief association deleted text begin which isdeleted text end
established under chapter 424A and governed under sections 424A.091 to 424A.096.
(b) "Unclaimed public pension fund amounts" means any amounts representing
accumulated member contributions, any outstanding unpaid annuity, service pension or
other retirement benefit payments, including those made on warrants issued by the
commissioner of management and budget, which have been issued and delivered for more
than six months prior to the date of the end of the fiscal year applicable to the public pension
fund, and any applicable interest to the credit of:
(1) an inactive or former member of a public pension fund who is not entitled to a defined
retirement annuity and who has not applied for a refund of those amounts within five years
after the last member contribution was made; or
(2) a deceased inactive or former member of a public pension fund if no survivor is
entitled to a survivor benefit and no survivor, designated beneficiary or legal representative
of the estate has applied for a refund of those amounts within five years after the date of
death of the inactive or former member.
Sec. 20.
Minnesota Statutes 2024, section 356B.02, is amended to read:
356B.02 DRAFTING PENSION AND RETIREMENT BILLS.
(a) Notwithstanding section 3C.035, an agency or pension system intending to urge the
legislature to adopt a bill affecting the pension system, one or more plans administered by
the pension system, or one or more deleted text begin volunteerdeleted text end firefighter relief associations; or relating to
pensions or retirement shall deliver the drafting request for the bill to the executive director
of the commission no later than November 1 before the regular session of the legislature at
which adoption will be urged.
(b) The executive director of the commission may accept a drafting request from an
agency or a pension system after November 1 if the executive director of the commission
determines that the request relates to a matter that could not reasonably have been foreseen
by November 1 or for which the requester provides other reasonable justification for delay.
Sec. 21.
Minnesota Statutes 2024, section 423A.02, subdivision 1b, is amended to read:
Subd. 1b.
Additional amortization state aid.
(a) Annually, the commissioner shall
allocate the additional amortization state aid, if any, including any state aid in excess of the
limitation in subdivision 4, on the following basis:
(1) 47.1 percent to the city of Minneapolis to defray the employer costs associated with
police and firefighter retirement coverage;
(2) 25.8 percent as additional funding to support the minimum fire state aid for deleted text begin volunteerdeleted text end
firefighter relief associations under section 477B.03, subdivision 5;
(3) 12.9 percent to the city of Duluth to defray employer costs associated with police
and firefighter retirement coverage;
(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the investment
performance requirement of paragraph (c) is met; and
(5) 1.3 percent to the city of Virginia to defray the employer contribution under section
353.665, subdivision 8, paragraph (d).
If there is no additional employer contribution under section 353.665, subdivision 8a,
certified under subdivision 1, paragraph (d), clause (2), with respect to the former
Minneapolis Police Relief Association and the former Minneapolis Fire Department Relief
Association, the commissioner shall allocate that 47.1 percent of the aid as follows: 49
percent to the Teachers Retirement Association, 21 percent to the St. Paul Teachers
Retirement Fund Association, and 30 percent as additional funding to support minimum
fire state aid for deleted text begin volunteerdeleted text end firefighter relief associations under section 477B.03, subdivision
5. If there is no employer contribution by the city of Virginia under section 353.665,
subdivision 8, paragraph (d), for the former Virginia Fire Department Relief Association
certified on or before June 30 by the executive director of the Public Employees Retirement
Association, the commissioner shall allocate that 1.3 percent of the aid as follows: 49 percent
to the Teachers Retirement Association, 21 percent to the St. Paul Teachers Retirement
Fund Association, and 30 percent as additional funding to support minimum fire state aid
for deleted text begin volunteerdeleted text end firefighter relief associations under section 477B.03, subdivision 5.
(b) The allocation must be made by the commissioner of revenue on October 1 annually.
(c) With respect to the St. Paul Teachers Retirement Fund Association, annually, if the
teacher's association five-year average time-weighted rate of investment return does not
equal or exceed the performance of a composite portfolio assumed passively managed
(indexed) invested ten percent in cash equivalents, 60 percent in bonds and similar debt
securities, and 30 percent in domestic stock calculated using the formula under section
11A.04, clause (11), the aid allocation to the retirement fund under this section ceases until
the five-year annual rate of investment return equals or exceeds the performance of that
composite portfolio.
(d) The amounts required under this subdivision are the amounts annually appropriated
to the commissioner of revenue under section 477B.03, subdivision 5, paragraph (d), if any,
and the aid amounts in excess of the limitation in subdivision 4.
Sec. 22.
Minnesota Statutes 2024, section 423A.02, subdivision 3, is amended to read:
Subd. 3.
Reallocation of amortization state aid.
(a) Seventy percent of the difference
between $5,720,000 and the current year amortization aid distributed under subdivision 1
that is not distributed for any reason to a municipality must be distributed by the
commissioner of revenue according to this paragraph. The commissioner shall distribute
60 percent of the amounts derived under this paragraph to the Teachers Retirement
Association, and 40 percent to the St. Paul Teachers Retirement Fund Association to fund
the unfunded actuarial accrued liabilities of the respective funds. These payments must be
made on July 15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or
the Teachers Retirement Association satisfies subdivision 5, eligibility for its portion of this
aid ceases. Amounts remaining in the undistributed balance account at the end of the
biennium if aid eligibility ceases cancel to the general fund.
(b) In order to receive amortization aid under paragraph (a), before June 30 annually
Independent School District No. 625, St. Paul, must make an additional contribution of
$800,000 each year to the St. Paul Teachers Retirement Fund Association.
(c) Thirty percent of the difference between $5,720,000 and the current year amortization
aid under subdivision 1 that is not distributed for any reason to a municipality must be
distributed under section 477B.03, subdivision 5, as additional funding to support a minimum
fire state aid amount for deleted text begin volunteerdeleted text end firefighter relief associations.
Sec. 23.
Minnesota Statutes 2024, section 424A.01, subdivision 3, is amended to read:
Subd. 3.
Status of nonmember deleted text begin volunteerdeleted text end firefighters.
No person who is serving as a
firefighter in a fire department but who is not a member of the applicable firefighters relief
association is entitled to any service pension or ancillary benefits from the relief association.
Sec. 24.
Minnesota Statutes 2024, section 424B.10, subdivision 1b, is amended to read:
Subd. 1b.
Benefits.
(a) The successor relief association following the consolidation of
two or more defined benefit relief associations must be a defined benefit relief association.
(b) Notwithstanding any provision of section 424A.02, subdivision 3, to the contrary,
the initial service pension amount of the subsequent defined benefit relief association as of
the effective date of consolidation is either the service pension amount specified in clause
(1) or the service pension amounts specified in clause (2), as provided for in the consolidated
relief association's articles of incorporation or bylaws:
(1) the highest dollar amount service pension amount of any prior firefighters relief
association in effect immediately before the consolidation initiation if the pension amount
was implemented consistent with section 424A.02; or
(2) for service rendered by each individual volunteernew text begin or paid on-callnew text end firefighter before
consolidation, the service pension amount under the consolidating firefighters relief
association that the firefighter belonged to immediately before the consolidation if the
pension amount was implemented consistent with section 424A.02 and for service rendered
after the effective date of the consolidation, the highest dollar amount service pension of
any of the consolidating deleted text begin volunteer firefightersdeleted text end new text begin firefighternew text end relief associations in effect
immediately before the consolidation if the pension amount was implemented consistent
with section 424A.02.
(c) Any increase in the service pension amount beyond the amount implemented under
paragraph (a) must conform with the requirements and limitations of section 424A.02 and
sections 424A.091 to 424A.095.
Sec. 25.
Minnesota Statutes 2024, section 465.90, is amended to read:
465.90 MUNICIPAL AUTHORITY TO PERMIT SOLICITATION BY
FIREFIGHTERS.
Notwithstanding any law or ordinance to the contrary, a municipality may by resolution
permit full-time permanent firefighters employed by the municipality while on duty, or
volunteer new text begin or paid on-call new text end firefighters serving the municipality while not on duty, to solicit
charitable contributions from motorists if the following conditions are met:
(1) the solicitation is for only one charitable organization annually, and that charitable
organization is qualified under section 501(c)(3) of the Internal Revenue Code and is
registered as a charity under state law;
(2) the solicitation does not occur for more than three days, whether or not consecutively,
in any calendar year; and
(3) the charitable organization provides to the municipality proof of commercial general
liability insurance against claims for bodily injury and property damage if the injury or
damage occurs (i) on public streets, roads, or rights-of-way, or (ii) as a result of the solicitor's
activities. The insurance must have a limit of no less than $1,500,000 per occurrence and
an endorsement to the policy naming the municipality as an additional insured.
Sec. 26. new text begin REVISOR INSTRUCTION.
new text end
new text begin
(a) In Minnesota Statutes, the revisor of statutes shall change the terms "volunteer
firefighters relief associations," "volunteer firefighters' relief associations," "firefighters
relief associations," and "firefighters' relief associations" to "firefighter relief associations"
wherever the terms appear.
new text end
new text begin
(b) In Minnesota Statutes, the revisor of statutes shall change the terms "firefighters
relief association" and "firefighters' relief association" to "firefighter relief association"
wherever the terms appear.
new text end
new text begin
(c) The revisor shall make any necessary grammatical changes or changes to sentence
structure necessary to preserve the meaning of the text as a result of the changes.
new text end
Sec. 27. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 26 are effective the day following final enactment.
new text end
ARTICLE 16
MISCELLANEOUS TECHNICAL CORRECTIONS
Section 1.
Minnesota Statutes 2025 Supplement, section 299A.465, subdivision 1, is
amended to read:
Subdivision 1.
Officer or firefighter disabled in line of duty.
(a) This subdivision
applies to any peace officer or firefighter:
(1) who the Public Employees Retirement Association or the Minnesota State Retirement
System determines is eligible to receive a duty disability benefit pursuant to section 353.656
or 352B.10, subdivision 1, respectively; or
(2) who is a member of a local police or salaried firefighters relief association and
qualifies for a duty disability benefit under the terms of plans of the relief associations, and
the peace officer or firefighter has discontinued public service as a peace officer or firefighter
as a result of a disabling injury and has been determined, by the Public Employees Retirement
Association, to have otherwise met the duty disability criteria set forth in section 353.01,
subdivision 41.
(b) Determinations made in accordance with paragraph (a) are binding on the peace
officer or firefighter, employer, and state. The determination must be made by the executive
director of the Public Employees Retirement Association or by the executive director of the
Minnesota State Retirement System, whichever applies, and is not subject to section 356.96,
subdivision 2. Upon making a determination, the executive director must provide written
notice to the peace officer or firefighter and the employer. The notice must include a written
statement of the reasons for the determination. If the notice is from the executive director
of the Minnesota State Retirement System, the notice must also include:
(1) a notice that the person may petition for a review of the determination by requesting
that a contested case be initiated before the Office of Administrative Hearings, the cost of
which must be borne by the peace officer or firefighter and the employer; and
(2) a statement that any person who does not petition for a review within 60 days is
precluded from contesting issues determined by the executive director in any other
administrative review or court procedure.
If, prior to the contested case hearing, additional information is provided to support the
claim for duty disability as defined in section 352B.011, subdivision 7, the executive director
may reverse the determination without the requested hearing. If a hearing is held before the
Office of Administrative Hearings, the determination rendered by the judge conducting the
fact-finding hearing is a final decision and order under section 14.62, subdivision 2a, and
is binding on the applicable executive director, the peace officer or firefighter, employer,
and state. Review of a final determination made by the Office of Administrative Hearings
under this section may only be obtained by writ of certiorari to the Minnesota Court of
Appeals under sections 14.63 to 14.68. Only the peace officer or firefighter, employer, and
state have standing to participate in a judicial review of the decision of the Office of
Administrative Hearings.
(c) The officer's or firefighter's employer must continue to provide health coverage and
pay for the coverage as required by paragraphs (d) to (g) for:
(1) the officer or firefighter; and
(2) the officer's or firefighter's dependents if the officer or firefighter was receiving
dependent coverage at the time of the injury under the employer's group health plan.
(d) For an officer or firefighter who has applied for or been approved to receive benefits
under section 353.656 deleted text begin prior to the date of enactmentdeleted text end new text begin before May 24, 2025,new text end or an officer or
firefighter who applies for and is approved for total and permanent duty disability benefits
under section 353.656, subdivision 1a, the employer is responsible for the continued payment
of the employer's contribution for health coverage of the officer or firefighter and, if
applicable, the officer's or firefighter's dependents. Coverage must continue for the officer
or firefighter and, if applicable, the officer's or firefighter's dependents until the officer or
firefighter reaches age 65 or, if deceased, would have reached age 65.
(e) For an officer or firefighter approved to receive benefits under section 353.656 on
or after deleted text begin the date of enactmentdeleted text end new text begin May 24, 2025,new text end and who is not approved for total and permanent
duty disability benefits under section 353.656, subdivision 1a, the employer is responsible
for the continued payment of the employer's contribution for health coverage of the officer
or firefighter and, if applicable, the officer's or firefighter's dependents. Coverage must
continue:
(1) for the officer or firefighter for a period of 60 months or, if earlier, until the officer
or firefighter reaches age 65; and
(2) for the officer's or firefighter's dependents for a period of 60 months.
(f) For an officer or firefighter who has applied for or been approved to receive benefits
under section 352B.10, subdivision 1, the employer is responsible for the continued payment
of the employer's contribution for health coverage of the officer or firefighter and, if
applicable, the officer's or firefighter's dependents. Coverage must continue for the officer
or firefighter and, if applicable, the officer's or firefighter's dependents until the officer or
firefighter reaches age 65 or, if deceased, would have reached age 65.
(g) The employer is not required to continue health coverage for dependents after the
person is no longer a dependent.
(h) An officer or firefighter who has applied for or been approved to receive benefits
under section 353.656 may affirmatively waive health coverage under this section but must
not receive any payment or other consideration from the employer in exchange for waiver
of the coverage. Any agreement entered into between an officer or firefighter who has
applied for or been approved to receive benefits under section 353.656 and the officer's or
firefighter's employer or the employer's agent providing for compensation for a waiver of
coverage under this section is void. Nothing in this subdivision shall be construed to render
void any agreement entered into deleted text begin prior to the date of enactmentdeleted text end new text begin before May 24, 2025new text end .
(i) Once a duty disability determination is made pursuant to section 353.656, the employer
has no right to challenge and is prohibited from challenging the continuation and payment
of health coverage under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2024, section 354A.29, subdivision 7, is amended to read:
Subd. 7.
Postretirement adjustments.
(a) Except as set forth in paragraph (c), each
person who has been receiving an annuity or benefit under the articles of incorporation, the
bylaws, or this chapter, whose effective date of benefit commencement occurred on or
before July 1 of the calendar year immediately before the adjustment, is eligible to receive
an annual postretirement adjustment, effective as of each January 1, as follows:
(1) there shall be no postretirement adjustment on January 1, 2019, and January 1, 2020;
and
(2) the postretirement adjustment shall be one percent on January 1, 2021, and each
January 1 thereafter.
(b) A postretirement adjustment is to be applied as a permanent increase to the regular
payment of each eligible member on January 1. For any eligible member whose effective
date of benefit commencement occurred after January 1 of the immediately preceding
calendar year, the amount of the postretirement adjustment must be reduced by 50 percent.
(c) Each person who retires on or after July 1, 2024, is entitled to an annual postretirement
adjustment, effective as of each January 1, beginning with the year following the year in
which the member attains normal retirement age.
(d) Paragraph (c) does not apply to members who retire under section 354A.31,
subdivision 6, paragraph deleted text begin (b)deleted text end new text begin (c)new text end , or who retire when the member is at least age 62 and has
at least 30 years of service under section 354A.31, subdivision 7.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2025 Supplement, section 356.24, subdivision 1, is amended
to read:
Subdivision 1.
Restriction; exceptions.
It is unlawful for a school district or other
governmental subdivision or state agency to levy taxes for or to contribute public funds to
a supplemental pension or deferred compensation plan that is established, maintained, and
operated in addition to a primary pension program for the benefit of the governmental
subdivision employees other than:
(1) to a supplemental pension plan that was established, maintained, and operated before
May 6, 1971;
(2) to a plan that provides solely for group health, hospital, disability, or death benefits;
(3) to the individual retirement account plan established by chapter 354B;
(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or
terminating employee;
(5) to a deferred compensation plan defined in subdivision 3;
(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges
and Universities and not covered by clause (5), to the supplemental retirement plan under
chapter 354C, if the supplemental plan coverage is provided for in a personnel policy or in
the collective bargaining agreement of the public employer with the exclusive representative
of the covered employees in an appropriate unit, in an amount matching employee
contributions on a dollar for dollar basis, but not to exceed an employer contribution of
$4,300 a year for each employee;
(7) to a supplemental plan or to a governmental trust to save for postretirement health
care expenses qualified for tax-preferred treatment under the Internal Revenue Code, if the
supplemental plan coverage is provided for in a personnel policy deleted text begin or in thedeleted text end new text begin ,new text end collective
bargaining agreementnew text begin , participation plan, or resolution of the governing bodynew text end of a public
employer with the exclusive representative of the covered employees in an appropriate unit;
(8) to the laborers national industrial pension fund or to a laborers local pension fund
for the employees of a governmental subdivision who are covered by a collective bargaining
agreement that provides for coverage by that fund and that sets forth a fund contribution
rate, but not to exceed an employer contribution of $10,000 per year per employee;
(9) to the plumbers and pipefitters national pension fund or to a plumbers and pipefitters
local pension fund for the employees of a governmental subdivision who are covered by a
collective bargaining agreement that provides for coverage by that fund and that sets forth
a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per
employee;
(10) to the international union of operating engineers pension fund for the employees
of a governmental subdivision who are covered by a collective bargaining agreement that
provides for coverage by that fund and that sets forth a fund contribution rate, but not to
exceed an employer contribution of $10,000 per year per employee;
(11) to the International Association of Machinists national pension fund for the
employees of a governmental subdivision who are covered by a collective bargaining
agreement that provides for coverage by that fund and that sets forth a fund contribution
rate, but not to exceed an employer contribution of $5,000 per year per employee;
(12) for employees of United Hospital District, Blue Earth, to the state of Minnesota
deferred compensation program, if the employee makes a contribution, in an amount that
does not exceed the total percentage of covered salary under section 353.27, subdivisions
3 and 3a;
(13) to the alternative retirement plans established by the Hennepin County Medical
Center under section 383B.914, subdivision 5;
(14) to the International Brotherhood of Teamsters Central States pension plan for
fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who
are members of the International Brotherhood of Teamsters Local 638 by virtue of that
employment; or
(15) to a supplemental plan organized and operated under the Internal Revenue Code,
as amended, that is wholly and solely funded by the employee's accumulated sick leave,
accumulated vacation leave, and accumulated severance pay.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2025 Supplement, section 423A.022, subdivision 2, is amended
to read:
Subd. 2.
Allocation.
(a) Of the total amount appropriated as supplemental state aid:
(1) 58.064 percent must be paid to the executive director of the Public Employees
Retirement Association for deposit in the public employees police and fire retirement fund
established by section 353.65, subdivision 1;
(2) 35.484 percent must be allocated and paid as required by paragraphs (b) and (c),
respectively, to or on behalf of municipalities who qualify for supplemental state aid under
paragraph (d); and
(3) 6.452 percent must be paid to the executive director of the Minnesota State Retirement
System for deposit in the state patrol retirement fund.
(b) Supplemental state aid under paragraph (a), clause (2), must be allocated to each
municipality that qualifies for supplemental state aid under paragraph (d) in the same
proportion that the most recent amount of fire state aid paid under section 477B.04 for the
municipality bears to the most recent total fire state aid paid under section 477B.04 for all
municipalities other than municipalities solely employing firefighters with retirement
coverage by one or more pension plans under chapter 353.
(c) Supplemental state aid under paragraph (a), clause (2), must be paid:
(1) to the executive director of the Public Employees Retirement Association for each
municipality with a fire department that participates in the statewide volunteer firefighter
plan for deposit in the fund established by section deleted text begin 352G.02deleted text end new text begin 353G.02new text end , subdivision 3, and
credited to the fire department's account; and
(2) with the balance to the treasurer of each municipality for transmittal within 30 days
of receipt to the treasurer of the applicable firefighters relief association for deposit in its
special fund.
(d) A municipality qualifies for supplemental state aid under paragraph (a), clause (2),
if the municipality:
(1) does not solely employ firefighters with retirement coverage provided by one or
more pension plans established under chapter 353; and
(2) qualified to receive fire state aid in that calendar year.
(e) For purposes of this section, the term "municipalities" includes independent nonprofit
firefighting corporations that participate in the statewide volunteer firefighter plan under
chapter 353G or with subsidiary firefighter relief associations operating under chapter 424A.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
APPENDIX
Repealed Minnesota Statutes: H4074-3
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.