SF 4276
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/10/2026 09:44 a.m.
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A bill for an act
relating to retirement; making administrative changes to statutes governing the
retirement plans administered by the Minnesota State Retirement System; clarifying
that correctional employees remain in the correctional employees retirement plan
while working for a labor organization; making conforming changes to retirement
annuity application procedures; modifying enrollment procedures in the state fire
marshals subplan; clarifying that the correctional plan membership committee is
not subject to the open meeting law and agency appointment and registration
requirements; allowing current deputy fire marshals to elect coverage by the state
fire marshals subplan; amending Minnesota Statutes 2024, sections 352.021,
subdivision 2; 352.029, subdivisions 1, 2, 2a; 352.115, subdivisions 7a, 8, 9;
352.87, subdivisions 1, 2; Minnesota Statutes 2025 Supplement, sections 352.029,
subdivision 3; 352.905, by adding a subdivision; 352.907, by adding a subdivision;
repealing Minnesota Statutes 2024, section 352.87, subdivision 8.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 352.021, subdivision 2, is amended to read:
Subd. 2.
State employees covered.
Every person who becomes a state employee as
defined in section 352.01 is covered by the general state employees retirement plannew text begin , unless
the state employee is covered by the correctional employees retirement plan under section
352.905new text end . Acceptance of state employment or continuance in state service is deemed to be
consent new text begin by the state employee new text end to have deductions made from salary for deposit to the credit
of the account of the state employee in the retirement fundnew text begin of the plan that provides retirement
coverage for the state employeenew text end .
Sec. 2.
Minnesota Statutes 2024, section 352.029, subdivision 1, is amended to read:
Subdivision 1.
Qualifications.
new text begin (a) new text end Unless deleted text begin alreadydeleted text end specifically included under section
352.01, subdivision 2a, or unless specifically excluded under section 352.01, subdivision
2b, a state employee new text begin covered by the general state employees retirement plan who is new text end on leave
of absence without pay to provide service as an employee or officer of a labor organization
that is an exclusive bargaining agent representing state employees may elect under
subdivision 2 to be covered by the general state employees retirement plan deleted text begin of the Minnesota
State Retirement Systemdeleted text end for service with the labor organization, subject to the limitations
set forth in subdivisions 2a and 2b.
new text begin
(b) Unless specifically included under section 352.01, subdivision 2a, or unless
specifically excluded under section 352.01, subdivision 2b, a state employee covered by
the correctional employees retirement plan who is on leave of absence without pay to provide
service as an employee or officer of a labor organization that is an exclusive bargaining
agent representing state employees may elect under subdivision 2 to be covered by the
correctional employees retirement plan for service with the labor organization, subject to
the limitations set forth in subdivisions 2a and 2b.
new text end
Sec. 3.
Minnesota Statutes 2024, section 352.029, subdivision 2, is amended to read:
Subd. 2.
Election.
A person described in subdivision 1 is covered by the deleted text begin systemdeleted text end new text begin general
employees retirement plan under subdivision 1, paragraph (a), or the correctional employees
retirement plan under subdivision 1, paragraph (b),new text end if new text begin the person delivers a new text end written election
to be covered deleted text begin is delivereddeleted text end to the executive director within 90 days of being employed by
the labor organizationdeleted text begin ,deleted text end or within 90 days of starting the first leave of absence deleted text begin with an
exclusive bargaining agentdeleted text end new text begin to provide service as an employee or officer of a labor
organizationnew text end , whichever is later.
Sec. 4.
Minnesota Statutes 2024, section 352.029, subdivision 2a, is amended to read:
Subd. 2a.
Limitations on salary for benefits and contributions.
(a) The covered salary
for a labor organization employee who is a member under section 352.01, subdivision 2a,
paragraph (a), or who qualifies for membership under this section deleted text begin or section 352.75deleted text end is limited
to the lesser of:
(1) the employee's deleted text begin actualdeleted text end salary as defined under section 352.01, subdivision 13; or
(2) 75 percent of the salary of the governor as set under section 15A.082.
(b) The limited covered salary determined under this subdivision must be used in
determining employee, employer, and new text begin supplemental new text end employer deleted text begin additionaldeleted text end contributions under
deleted text begin sectiondeleted text end new text begin sectionsnew text end 352.04, subdivisions 2 and 3, new text begin and 352.92 new text end and in determining retirement
annuities and other benefits under this chapter and chapter 356.
Sec. 5.
Minnesota Statutes 2025 Supplement, section 352.029, subdivision 3, is amended
to read:
Subd. 3.
Contributions.
new text begin (a) new text end The employee and employer contributions required by
section 352.04deleted text begin ,deleted text end new text begin for employees covered by the general state employees retirement plannew text end or
by section 352.92 for employees covered by deleted text begin section 352.905,deleted text end new text begin the correctional employees
retirement plan new text end are the obligation of the employee deleted text begin who is a member under section 352.01,
subdivision 2a, paragraph (a), ordeleted text end who chooses coverage under this section. However, the
employing labor organization may pay the employer contributionsnew text begin to the general state
employees retirement fund as required by section 352.04 for employees covered by the
general state employees retirement plan or to the correctional employees retirement fund
as required by section 352.92 for employees covered by the correctional employees retirement
plannew text end .
new text begin (b) new text end Contributions made by the employee must be made by salary deduction. deleted text begin The
employing labor organization shall pay all contributions to the system as required by section
352.04, or by section 352.92 for employees covered by section 352.905.
deleted text end
Sec. 6.
Minnesota Statutes 2024, section 352.115, subdivision 7a, is amended to read:
Subd. 7a.
Application procedure.
(a) The deleted text begin filing of andeleted text end application for an annuity, refund,
disability benefit, survivor benefit, death benefit, or other deleted text begin monthlydeleted text end benefit authorized by
this chapter or chapter 3A, 352B, 352D, or 490 must comply with this subdivision.
(b) Filing of an application deleted text begin under paragraph (a) is not complete untildeleted text end new text begin is effective on the
datenew text end an original application deleted text begin and supporting documents aredeleted text end new text begin isnew text end received in an office of the
system or received by a person authorized by the director. An original application may not
be an electronic copy or facsimile copy and if received in an office of the system, must be
delivered by personal service or mail.
(c) deleted text begin In this subdivision,deleted text end new text begin To complete the application, supporting documents must be
received in an office of the system or received by a person authorized by the director no
later than 60 days after filing the application. Supporting documents are not required to be
original documents except as determined by the director.new text end deleted text begin "deleted text end Supporting documentsdeleted text begin "deleted text end are:
(1) documents sufficient to verify birthnew text begin datenew text end ;
(2) documents sufficient to verify marital status or establish the terms of a divorce, if
applicable; and
(3) the new text begin spousal new text end acknowledgment required by section 356.46, subdivision 3, paragraph
(b).
deleted text begin
Supporting documents are not required to be original documents except as determined by
the director.
deleted text end
Sec. 7.
Minnesota Statutes 2024, section 352.115, subdivision 8, is amended to read:
Subd. 8.
Accrual of annuity.
new text begin (a)new text end The application for an annuity must not be deleted text begin madedeleted text end new text begin filednew text end
more than 60 days before the deleted text begin timedeleted text end new text begin datenew text end the state employee or former state employee elects
to begin collecting a retirement annuity.
new text begin (b)new text end If the director determines an applicant for annuity has fulfilled the legal requirements
for an annuity, the director shall authorize the annuity payment in accordance with this
chapter and payment must be made as authorized.
new text begin (c)new text end An annuity shall begin to accrue no earlier than 180 days before the date the
application is filed with the director, but not before the day following the termination of
state service or before the day the employee is eligible to retire by reason of both age and
service requirements.
new text begin (d)new text end The retirement annuity shall cease with the last payment which had accrued during
the lifetime of the retired employee unless an optional annuity provided in section 352.116,
subdivision 3, had been selected and had become payable. The joint and last survivor annuity
shall cease with the last payment received by the survivor during the lifetime of the survivor.
If a retired employee had not selected an optional annuity, or a survivor annuity is not
payable under the option, and a spouse survives, the spouse is entitled only to the annuity
for the calendar month in which the retired employee died. If an optional annuity is payable
after the death of the retired employee, the survivor is entitled to the annuity for the calendar
month in which the retired employee died.
Sec. 8.
Minnesota Statutes 2024, section 352.115, subdivision 9, is amended to read:
Subd. 9.
Annuities payable monthly.
All annuities, and disability benefits authorized
by this chapter, must be paid in equal monthly installments and must not be increased,
decreased, or revoked except as provided in this chapternew text begin or chapter 356new text end .
Sec. 9.
Minnesota Statutes 2024, section 352.87, subdivision 1, is amended to read:
Subdivision 1.
Eligibility.
new text begin (a) new text end A member of the general new text begin state employees retirement new text end plan
who is employed by the Department of Public Safety, State Fire Marshal Division, as a
deputy state fire marshal, fire/arson investigator, deleted text begin who elects special benefit coverage under
subdivision 8,deleted text end is entitled to retirement deleted text begin benefitsdeleted text end or disability benefits, as applicable, as stated
in this section for eligible service under this section rendered after July 1, 1999, for which
allowable service credit is receiveddeleted text begin .deleted text end new text begin if the member is first employed as a deputy state fire
marshal, fire/arson investigator:
new text end
new text begin
(1) before July 1, 2026, and the member elected special benefit coverage under the laws
in effect on the day the member was first employed as a deputy state fire marshal, fire/arson
investigator; or
new text end
new text begin
(2) after June 30, 2026.
new text end
new text begin (b)new text end The covered member must be at least age 55 to qualify for the retirement annuity
specified in subdivision 3.
Sec. 10.
Minnesota Statutes 2024, section 352.87, subdivision 2, is amended to read:
Subd. 2.
Retirement annuity eligibility.
A person specified in subdivision 1 who meets
all eligibility requirements specified in this chapter applicable to deleted text begin general plandeleted text end members new text begin of
the general state employees retirement plan new text end is eligible for retirement benefits as specified
in subdivision 3.
Sec. 11.
Minnesota Statutes 2025 Supplement, section 352.905, is amended by adding a
subdivision to read:
new text begin Subd. 8. new text end
new text begin Employees of labor organization. new text end
new text begin
Employees who meet the coverage and
election requirements of section 352.029 will continue to be covered by the correctional
employees retirement plan.
new text end
Sec. 12.
Minnesota Statutes 2025 Supplement, section 352.907, is amended by adding a
subdivision to read:
new text begin Subd. 7. new text end
new text begin Certain laws not applicable to the membership committee. new text end
new text begin
(a) Meetings of
the correctional plan membership committee are not subject to chapter 13D.
new text end
new text begin
(b) The correctional plan membership committee is not an agency for the purposes of
sections 15.0597 and 15.0599.
new text end
Sec. 13. new text begin ELECTION OF COVERAGE FOR CURRENT DEPUTY STATE FIRE
MARSHALS.
new text end
new text begin Subdivision 1. new text end
new text begin Definition. new text end
new text begin
For purposes of this section, "eligible employee" means a
member of the general state employees retirement plan of the Minnesota State Retirement
System who began employment with the Department of Public Safety, State Fire Marshal
Division, as a deputy state fire marshal, fire/arson investigator, after July 31, 2021, and
before October 5, 2022.
new text end
new text begin Subd. 2. new text end
new text begin Election of coverage. new text end
new text begin
(a) An eligible employee may file a notice with the
executive director of the Minnesota State Retirement System on a form prescribed by the
executive director stating that the employee elects to be covered by section 352.87. Notice
must be filed no later than 60 days after enactment of this section.
new text end
new text begin
(b) Elections under this subdivision are irrevocable during any period of covered
employment.
new text end
new text begin
(c) An eligible employee who makes an election under this subdivision is entitled to
retirement or disability benefits, as applicable, as stated in section 352.87. Elected coverage
is effective retroactively from the first day of employment.
new text end
new text begin
(d) A failure to file a timely notice is deemed a waiver of coverage by section 352.87.
new text end
new text begin Subd. 3. new text end
new text begin Calculation of additional contributions due. new text end
new text begin
(a) Upon the request of an
eligible employee before the eligible employee files the notice electing coverage under
subdivision 2 or if an eligible employee files the notice electing coverage under subdivision
2, the executive director of the Minnesota State Retirement System must calculate:
new text end
new text begin
(1) the employee contributions that would have been deducted from the eligible
employee's salary starting with the first day of covered employment but were not deducted
because the eligible employee had not yet filed the notice electing coverage, plus interest
at the applicable rate or rates specified in section 356.59, subdivision 2; and
new text end
new text begin
(2) the employer contributions that would have been paid by the employer starting with
the eligible employee's first day of covered employment but were not deducted because the
eligible employee had not yet filed the notice electing coverage, plus interest at the applicable
rate or rates specified in section 356.59, subdivision 2.
new text end
new text begin
(b) The executive director must inform the eligible employee and the Department of
Public Service of the amounts calculated under paragraph (a) no later than 30 days after
receiving the request or the notice electing coverage from the eligible employee.
new text end
new text begin Subd. 4. new text end
new text begin Payment of additional contributions. new text end
new text begin
(a) If an eligible employee files a notice
electing coverage under subdivision 2, the eligible employee must pay the employee
contributions and interest computed under subdivision 3, paragraph (a), to the general
employees retirement fund of the Minnesota State Retirement System in a lump sum.
Payment must be made within six months of filing the notice electing coverage under
subdivision 2 or on the date the eligible employee terminates employment as a deputy state
fire marshal, fire/arson investigator, whichever is earlier.
new text end
new text begin
(b) The Department of Public Safety must pay the employer contributions and interest
computed under subdivision 3, paragraph (a), to the general employees retirement fund of
the Minnesota State Retirement System within 30 days of the date on which the executive
director of the Minnesota State Retirement System certifies to the Department of Public
Safety that the eligible employee made the payment required under paragraph (a).
new text end
Sec. 14. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2024, section 352.87, subdivision 8,
new text end
new text begin
is repealed.
new text end
Sec. 15. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 14 are effective July 1, 2026.
new text end
APPENDIX
Repealed Minnesota Statutes: 26-06997
352.87 STATE FIRE MARSHAL DIVISION EMPLOYEES.
Subd. 8.
Election of coverage.
To be covered by this section, an employee of the Department of Public Safety described in subdivision 1 who is employed in a position described in that subdivision must file a notice with the executive director of the system on a form prescribed by the executive director stating that the employee elects to be covered by this section. Notice must be filed within 90 days of employment. Elected coverage is effective retroactively as of the first day of employment. Amounts that would have been deducted from the employee's salary starting with the first day of employment but were not deducted because the employee had not yet filed the election must be deducted from the employee's future salary in accordance with a schedule of deductions determined by the executive director and the Department of Public Safety. Elections are irrevocable during any period of covered employment. A failure to file a timely notice is deemed a waiver of coverage by this section.