HF 4879

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/09/2026 02:49 p.m.

A bill for an act
relating to retirement; revising various retirement statutes to include references to
the local government probation and telecommunicator retirement plan; amending
Minnesota Statutes 2024, sections 353.01, subdivisions 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; 353.46,
subdivision 2; 356.20, subdivision 2; 356.214, subdivision 1; 356.302, subdivisions
1, 7; 356.303, subdivision 4; 356.315, subdivision 9; 356.32, subdivision 2;
356.401, subdivision 3; 356.415, subdivision 2; 356.461, subdivision 2; 356.465,
subdivision 3; 356.47, subdivision 3; 356.48, subdivision 1; 356.611, subdivision
6; Minnesota Statutes 2025 Supplement, sections 353.01, subdivisions 2a, 2b;
356.215, subdivision 8.

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

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 or deleted 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 or deleted text end the public employees police and fire plan new text begin , or the local government probation and
telecommunicator retirement plan under chapter 353H new 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 or deleted text end 353E.03 new text begin , or 353H.04 new 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 or deleted text end the public employees police and fire retirement plan new text begin , or the local
government probation and telecommunicator retirement plan under chapter 353H new 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 and deleted text end the local
government correctional service retirement plan new 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 or deleted text end 353E.06 new text begin , or 353H.06 new 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 or deleted text end the local government correctional service retirement plan new text begin ,
or the local government probation and telecommunicator retirement plan new 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 to deleted text end the public employees police and fire retirement plan, deleted text begin and to deleted text end
the local government correctional service retirement plan new text begin , and the local government probation
and telecommunicator retirement plan new 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 or deleted text end the
local government correctional service retirement plan under chapter 353E new text begin , or the local
government probation and telecommunicator retirement plan under chapter 353H new text end at the rate
under section 353.27, 353.65, 353D.03, deleted text begin or deleted 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 or deleted text end the local government correctional service retirement plan new text begin , or the local government
probation and telecommunicator retirement plan new 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 or deleted text end the local government correctional employees retirement plan new text begin , or the local government
probation and telecommunicator retirement plan new 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 or deleted text end the local government correctional employees retirement plan new text begin , or the local government
probation and telecommunicator retirement plan new 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 or deleted text end the local government correctional
employees retirement plan new text begin , or the local government probation and telecommunicator
retirement plan new 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 or deleted text end the local government correctional employees retirement plan new text begin ,
or the local government probation and telecommunicator retirement plan new 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 or deleted text end the local government
correctional employees retirement plan new text begin , or the local government probation and
telecommunicator retirement plan new 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 or deleted text end the local government correctional employees retirement plan new text begin , or the local government
probation and telecommunicator retirement plan new 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 or deleted text end the local government
correctional retirement fund new text begin , or the local government probation and telecommunicator
retirement fund new 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 or deleted text end the local government correctional retirement plan new text begin , or the local government
probation and telecommunicator retirement plan new 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 5 new text begin or section 353H.05,
subdivisions 1 and 3 new 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 section deleted text end new text begin
sections new text end 353.01, subdivision 17a, and deleted text begin section deleted text end 353.29, subdivision 3 new text begin , or 353H.05, subdivision
1, for members of the local government probation and telecommunicator retirement plan new 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 plan new text begin and local government probation
and telecommunicator retirement plan new 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 353.29 new text begin or 353H.05 new 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 or deleted text end the
public employees local government correctional service retirement plan new text begin , or the local
government probation and telecommunicator retirement plan new 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 5 new text begin , or 353H.05, subdivision 3 new 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 or deleted text end the local government correctional employees retirement plan new text begin , or the local government
probation and telecommunicator retirement plan new 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 or deleted text end the local
government correctional employees retirement plan new text begin , or the local government probation and
telecommunicator retirement plan new 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.

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 plan deleted 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. 27.

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 Association deleted 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. 28.

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. 29.

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. 30.

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 490 deleted 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. 31.

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 490 deleted 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. 32.

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. 33.

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 354A deleted 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. 34.

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 490 deleted 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. 35.

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 plan new 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
System new text begin , new text end established under chapter 352;

(3) the general state employees retirement plan of the Minnesota State Retirement System new text begin , new text end
established under chapter 352;

(4) the State Patrol retirement plan new text begin , new text end established under chapter 352B;

(5) the general employees retirement plan of the Public Employees Retirement
Association new text begin , new text end established under chapter 353;

(6) the public employees police and fire retirement plan of the Public Employees
Retirement Association new text begin , new text end established under chapter 353;

(7) the local government correctional employees retirement plan of the Public Employees
Retirement Association new text begin , new text end established under chapter 353E;

(8) the teachers retirement plan new text begin , new text end established under chapter 354; deleted text begin and
deleted text end

(9) the judges retirement plan new text begin , new text end established under chapter 490 deleted 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. 36.

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 354 deleted 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. 37.

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 System new text begin , new text end
established under chapter 352;

(2) the correctional state employees retirement plan of the Minnesota State Retirement
System new text begin , new text end established under chapter 352;

(3) the State Patrol retirement plan new text begin , new text end established under chapter 352B;

(4) the legislators retirement plan new text begin , new text end established under chapter 3A;

(5) the judges retirement plan new text begin , new text end established under chapter 490;

(6) the general employees retirement plan of the Public Employees Retirement
Association new text begin , new text end established under chapter 353;

(7) the public employees police and fire plan of the Public Employees Retirement
Association new text begin , new text end established under chapter 353;

(8) the teachers retirement plan new text begin , new text end established under chapter 354;

(9) the St. Paul Teachers Retirement Fund Association new 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 Association new text begin , new text end established under chapter 353E deleted 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. 38.

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. 39.

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 System new text begin , new text end
established under chapter 352;

(2) the correctional state employees retirement plan of the Minnesota State Retirement
System new text begin , new text end established under chapter 352;

(3) the State Patrol retirement plan new text begin , new text end established under chapter 352B;

(4) the unclassified state employees retirement program of the Minnesota State Retirement
System new text begin , new text end established under chapter 352D;

(5) the general employee retirement plan of the Public Employees Retirement Association new text begin , new text end
established under chapter 353;

(6) the public employees police and fire retirement plan new text begin , new text end established under chapter 353;

(7) the local government correctional employees retirement plan of the Public Employees
Retirement Association new text begin , new text end established under chapter 353E;

(8) the Teachers Retirement Association new text begin , new text end established under chapter 354;

(9) the St. Paul Teachers Retirement Fund Association new text begin , new text end established under chapter 354A;
deleted text begin and
deleted text end

(10) the uniform judicial retirement plan new text begin , new text end established under chapter 490 deleted 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. 40.

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 amended deleted 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. 41. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 40 are effective upon enactment in the 2026 regular or special session of
a bill styled as H.F. No. .../S.F. No. ..., also referred to as revisor number ..., section ..., or
its equivalent.
new text end