HF 4957

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/13/2026 02:36 p.m.

A bill for an act
relating to retirement; modifying the requirements for a combined service annuity;
amending Minnesota Statutes 2024, section 356.30, subdivision 1.

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

Section 1.

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 3, 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; deleted text begin and
deleted text end

(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 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (6) if a member qualifies for the early retirement benefit under section 353.30, subdivision
1a, the member must be considered as qualified for the early retirement benefit under section
354.44, subdivision 6, paragraph (c), clause (3), and may elect to receive an unreduced
annuity under sections 353.30, subdivision 1a, and 354.44, subdivision 6, paragraph (c),
clause (3), as if the member was employed in public service and as a member of the teachers
retirement association before July 1, 1989.
new text end

(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 the day following final enactment.
new text end