SF 5097

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/14/2026 09:28 a.m.

A bill for an act
relating to retirement; establishing the probation and telecommunicator retirement
subplan administered by the Minnesota State Retirement System; revising various
retirement statutes to include references to the probation and telecommunicator
retirement subplan; appropriating money; amending Minnesota Statutes 2024,
sections 352.75, subdivision 2; 352.951; 356.30, subdivisions 1, 3, by adding a
subdivision; 356.315, subdivision 9; proposing coding for new law in Minnesota
Statutes, chapter 352.

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

ARTICLE 1

PROBATION AND TELECOMMUNICATOR RETIREMENT SUBPLAN

Section 1.

new text begin [352.88] PROBATION OFFICERS AND PUBLIC SAFETY
TELECOMMUNICATORS.
new text end

new text begin Subdivision 1. new text end

new text begin Policy. new text end

new text begin It is the policy of the legislature that special consideration should
be given to the pension benefits for employees of the state and governmental subdivisions
who devote their time and skills to assisting the community and the courts as probation
officers or serving the public and public safety partners as telecommunicators. Since this
work can be hazardous or high stress, special provisions are made by this section for earlier
full retirement than is provided to members of the general state employees retirement plan
under section 352.01, subdivision 25. The additional cost of this benefit is split between the
employees and employers.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section and section 352.881, each of the
following terms has the meaning given unless the language or context clearly indicates that
a different meaning is intended. The definitions in section 352.01 apply to terms used in
this section and section 352.881 unless the term is defined in this section.
new text end

new text begin (b) "Committee" means the probation and telecommunicator subplan membership
committee established pursuant to section 352.881.
new text end

new text begin (c) "Employee organization" has the meaning given in section 179A.03, subdivision 6.
new text end

new text begin (d) "General plan" means the general state employees retirement plan of the Minnesota
State Retirement System.
new text end

new text begin (e) "Member" means an individual to whom this section applies under subdivision 3.
new text end

new text begin (f) "Normal retirement age" means age 60.
new text end

new text begin (g) "Offset amount" means the lesser of $....... or ....... percent of the cost to purchase
the amount of past service elected by a member under subdivision 6, except that the offset
amount must not exceed the cost to purchase the amount of past service elected.
new text end

new text begin (h) "Past service" means allowable service credited to a member before January 1, 2027,
and covered by the general plan that would have been service covered by this section had
this section been in effect before January 1, 2027.
new text end

new text begin (i) "Probation officer" means a state employee, as defined in section 352.01, employed
by the Department of Corrections:
new text end

new text begin (1) as:
new text end

new text begin (i) a corrections agent;
new text end

new text begin (ii) a corrections agent career;
new text end

new text begin (iii) a corrections agent senior;
new text end

new text begin (iv) a corrections field service district supervisor;
new text end

new text begin (v) a corrections community services regional director;
new text end

new text begin (vi) a corrections field services director;
new text end

new text begin (vii) a corrections field services program director; or
new text end

new text begin (2) whom the commissioner of corrections or the commissioner's delegate certifies, in
the manner prescribed by the executive director, as having substantial responsibility for:
new text end

new text begin (i) providing community supervision services or overseeing the delivery of probation
services; or
new text end

new text begin (ii) supervising employees eligible under item (i).
new text end

new text begin (j) "Public safety telecommunicator" means a state employee, as defined in section
352.01, employed by the Department of Public Safety or Metropolitan Council as:
new text end

new text begin (1) as:
new text end

new text begin (i) a radio communications operator;
new text end

new text begin (ii) a radio communications supervisor;
new text end

new text begin (iii) a public safety answering point (PSAP) manager, as defined in Minnesota Rules,
part 7580.0100, subpart 12;
new text end

new text begin (iv) a supervisor, transit control center; or
new text end

new text begin (2) whom the commissioner of public safety, the commissioner's delegate, the Metro
Transit general manager, or the general manager's delegate, as applicable, certifies, in the
manner prescribed by the executive director, as having substantial responsibility for:
new text end

new text begin (i) receiving, processing, transmitting, or dispatching emergency and nonemergency
calls for law enforcement, fire, emergency medical, or other public safety services; or
new text end

new text begin (ii) supervising employees eligible under item (i).
new text end

new text begin (k) "Vesting" or "vested" means obtaining or having obtained a nonforfeitable entitlement
to an annuity or benefit under this section by having earned credit for not less than three
years of allowable service covered by this section or the general plan.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin This section applies to probation officers and public safety
telecommunicators, unless the probation officer or public safety telecommunicator is age
60 or older with at least three years of allowable service in the general plan on January 1,
2027.
new text end

new text begin Subd. 4. new text end

new text begin Retirement annuity. new text end

new text begin (a) After separation from state service, a member who
has attained at least normal retirement age and is vested is entitled, upon application, to a
normal retirement annuity. The normal retirement annuity is equal to the member's average
salary multiplied by 1.9 percent for each year of allowable service.
new text end

new text begin (b) After separation from state service, a member who has reached the age of 55 and is
vested is entitled, upon application, to an early retirement annuity that is actuarially equivalent
to the normal retirement annuity.
new text end

new text begin (c) Allowable service credited to a member under this section is credited in lieu of service
credited to the general plan.
new text end

new text begin Subd. 5. new text end

new text begin Additional contributions. new text end

new text begin (a) A member must make an additional employee
contribution of 2.71 percent of salary.
new text end

new text begin (b) The employer of a member must make an additional employer contribution of 2
percent of salary.
new text end

new text begin (c) Contributions under paragraphs (a) and (b) are in addition to the contributions required
by section 352.04, subdivisions 2 and 3.
new text end

new text begin (d) Contributions under paragraphs (a) and (b) must be made in the manner provided in
section 352.04, subdivisions 4 to 6.
new text end

new text begin Subd. 6. new text end

new text begin Purchase of credit for past service. new text end

new text begin (a) A member is entitled to elect a onetime
purchase of credit for periods of past service to be added to the member's allowable service
covered by this section and used in calculating the member's retirement annuity. The member
must repay any refunds of employee contributions previously received from the general
plan before purchasing past service credit under this section.
new text end

new text begin (b) A member may request an estimate of the cost of a service credit purchase under
this paragraph.
new text end

new text begin (1) A member may file a request with the executive director for an estimate of the
purchase price for up to three different periods of past service by filing an application on a
form approved by the executive director.
new text end

new text begin (2) The member must file the request for an estimate before filing an election to purchase
past service under paragraph (c).
new text end

new text begin (3) The member must submit with the estimate request payment of the administrative
fee in the amount of $250 to cover the cost of preparing the estimates. If the member proceeds
with the purchase, the executive director must credit the administrative fee toward the
purchase price.
new text end

new text begin (4) The executive director must estimate the purchase price using the assumptions and
applying the offset amount as directed under subdivision 7 for the periods of past service
requested by the member and provide the estimates to the member.
new text end

new text begin (c) To purchase credit for past service, a member must file an application with the
executive director on a form approved by the executive director before the annuity starting
date of the member's retirement annuity or benefit. The application must:
new text end

new text begin (1) include documentation of the member's eligibility to make the purchase, signed
written permission to allow the executive director to request and receive verification of
applicable facts and eligibility requirements from the member's employer, and any other
relevant information that the executive director may require;
new text end

new text begin (2) state the amount of credit for past service the member plans to purchase and be
accompanied by a certification from one or more employers that the past service fulfills the
requirements under subdivision 2, paragraph (h); and
new text end

new text begin (3) if the member did not previously pay the administrative fee under paragraph (b),
include payment of the administrative fee of $250 to cover the cost of calculating the purchase
price. If the member proceeds with the purchase, the executive director must credit the
administrative fee toward the purchase price.
new text end

new text begin (d) The executive director must apply the assumptions and offset amount under
subdivision 7 to calculate the purchase price and notify the member. If the member elects
to make the purchase of credit for past service, the member must arrange for the transfer of
pretax funds from another retirement plan. Payment must be made in one lump sum prior
to the annuity starting date of the member's retirement annuity or benefit.
new text end

new text begin (e) Upon receipt of payment, the executive director must:
new text end

new text begin (1) direct the transfer of the offset amount from the state probation and telecommunicator
past service account established under subdivision 8 to the fund; and
new text end

new text begin (2) grant the member service credit for the period of past service for which credit was
purchased.
new text end

new text begin Subd. 7. new text end

new text begin Determination of past service purchase price. new text end

new text begin (a) The executive director
must calculate the purchase price for the period of past service elected by the member. The
purchase price is an amount equal to the actuarial present value, on the date of payment, of
the amount of the additional retirement annuity obtained by the additional service credit
being purchased minus the offset amount.
new text end

new text begin (b) The executive director must calculate the purchase price by:
new text end

new text begin (1) using the investment return assumption specified in section 356.215, subdivision 8,
and the mortality table in effect for the general plan;
new text end

new text begin (2) assuming continuous future service in the plan until the plan's minimum requirements
for normal retirement or retirement with an annuity unreduced for retirement at an early
age are met with the additional service credit purchased;
new text end

new text begin (3) assuming a full-time equivalent salary or actual salary, whichever is greater, and a
future salary history that includes annual salary increases at the applicable salary increase
rate for the plan; and
new text end

new text begin (4) reducing the amount determined under clauses (1) to (3) by the offset amount.
new text end

new text begin Subd. 8. new text end

new text begin State probation and telecommunicator past service account established. new text end

new text begin (a)
The state probation and telecommunicator past service account is created in the special
revenue fund.
new text end

new text begin (b) The executive director must use the money in the state probation and
telecommunicator past service account established under paragraph (a) to transfer amounts
required by subdivision 6, paragraph (e), until the balance in the account is zero.
new text end

Sec. 2.

new text begin [352.881] SUBPLAN COVERAGE CHANGES.
new text end

new text begin Subdivision 1. new text end

new text begin Standing review committees. new text end

new text begin (a) The commissioner of corrections must
appoint a standing review committee to review and determine positions or employees of
the Department of Corrections that should be covered by section 352.88. The commissioner
of public safety must appoint a standing review committee to review and determine positions
or employees of the Department of Public Safety that should be covered by section 352.88.
The Metro Transit general manager must appoint a standing review committee to review
and determine positions or employees of the Metropolitan Council that should be covered
by section 352.88.
new text end

new text begin (b) The Department of Corrections, Department of Public Safety, and Metropolitan
Council must each establish a procedure for the department's or agency's respective
committee to evaluate coverage by section 352.88. Each committee must follow:
new text end

new text begin (1) subdivision 2 when evaluating a change in the title of an employment position listed
in section 352.88, subdivision 2, paragraph (i), clause (1), or (j), clause (1); and
new text end

new text begin (2) subdivision 3 when evaluating requests for starting or ceasing coverage by section
352.88.
new text end

new text begin (c) If a committee has received one or more requests for changes to the title of an
employment position or the commencement or cessation of coverage of an employee by
section 352.88, the committee must convene at least as frequently as once every three
months. If a committee has not received any requests during a three-month period, the
review committee is not required to convene a meeting.
new text end

new text begin (d) Each committee must retain each request to the committee and the related
documentation and final determination for an employee or employment position in the
committee's respective department or agency.
new text end

new text begin (e) Meetings of a standing review committee are not subject to chapter 13D.
new text end

new text begin (f) A standing review committee is not an agency for the purposes of sections 15.0597
and 15.0599.
new text end

new text begin Subd. 2. new text end

new text begin Procedures for changing employment titles. new text end

new text begin (a) The applicable standing
review committee must review a change in the title of an employment position listed in
section 352.88, subdivision 2, paragraph (i), clause (1), or (j), clause (1), and determine
whether the responsibilities of the employment position satisfy the requirements under
section 352.88, subdivision 2, paragraph (i) or (j).
new text end

new text begin (b) If the committee determines that the responsibilities of the employment position
have not changed, or the responsibilities of the employment position have changed but the
changes do not affect the eligibility of the employment position for coverage by section
352.88, the department or agency affected by the determination must:
new text end

new text begin (1) submit the title change to the executive director of the Legislative Commission on
Pensions and Retirement before the start of the next legislative session and request legislation
to replace the title in section 352.88, subdivision 2, paragraph (i) or (j), as applicable, with
the new title; and
new text end

new text begin (2) notify each employee in the employment position no later than 30 days after the
effective date of the title change that the title change will not affect the continued coverage
of the employee by section 352.88 and that the department or agency, as applicable, has
submitted a request to the legislature to change the title in section 352.88, subdivision 2,
paragraph (i) or (j), as applicable.
new text end

new text begin (c) If the committee determines that the responsibilities of the employment position have
changed and the changes result in the employment position no longer being qualified for
coverage by section 352.88, the department or agency affected by the determination must
communicate the committee's determination to all affected employees no later than 10 days
after the date of the meeting at which the determination was made and inform the employees
of the right to appeal the determination under subdivision 4.
new text end

new text begin (d) The department or agency affected by the determination to remove a title must contact
the executive director of the Legislative Commission on Pensions and Retirement before
the start of the next legislative session and request legislation to remove the title in section
352.88, subdivision 2, paragraph (i) or (j), as applicable, if:
new text end

new text begin (1) an employee appeals the determination and the determination is upheld; or
new text end

new text begin (2) an employee does not appeal the determination.
new text end

new text begin (e) The committee must include an effective date in any determination to change or
remove an employment position from the lists in section 352.88, subdivision 2, paragraph
(i) or (j). The effective date may be retroactive for a determination to change an employment
position.
new text end

new text begin Subd. 3. new text end

new text begin Procedures for starting or ceasing coverage. new text end

new text begin (a) The applicable standing
review committee must consider requests to provide coverage by section 352.88 to an
employee who satisfies the requirements of section 352.88, subdivision 2, paragraph (i),
clause (2), or (j), clause (2), or to cease coverage of an employee who does not satisfy the
requirements of section 352.88, subdivision 2, paragraph (i), clause (2), or (j), clause (2).
new text end

new text begin (b) An employee, an employee's employee organization, or an employee's manager may
submit a request to the committee to provide coverage to an employee who satisfies the
requirements of section 352.88, subdivision 2, paragraph (i), clause (2), or (j), clause (2).
The request must include:
new text end

new text begin (1) a signed and dated position description for the employee's position; and
new text end

new text begin (2) a statement signed by the employee that describes the extent to which the employee's
job duties meet the requirements of section 352.88, subdivision 2, paragraph (i), clause (2),
or (j), clause (2).
new text end

new text begin (c) An employer may submit a request to the committee to cease coverage of an employee
who no longer satisfies the requirements of section 352.88, subdivision 2, paragraph (i),
clause (2), or (j), clause (2). The request must include:
new text end

new text begin (1) a signed and dated position description for the employee's position; and
new text end

new text begin (2) a statement signed by the employee's employer describing how the employee no
longer meets the requirements of section 352.88, subdivision 2, paragraph (i), clause (2),
or (j), clause (2).
new text end

new text begin (d) After making a determination of coverage or no coverage for an employee, the
department or agency affected by the determination must communicate the committee's
determination to the affected employee no later than ten days after the date of the meeting
at which the determination was made and inform the employee of the right to appeal the
determination under subdivision 4.
new text end

new text begin (e) If after making a determination of coverage, the committee determines that an
employment position should be added to the list of employment positions in section 352.88,
subdivision 2, paragraph (i) or (j), as applicable, the department or agency affected by the
determination must submit the employment position addition to the executive director of
the Legislative Commission on Pensions and Retirement before the start of the next legislative
session and request legislation to make the change.
new text end

new text begin (f) The committee must include an effective date in any determination that an employee
must begin to receive coverage under section 352.88 or that coverage must cease. The
effective date may be retroactive to the date on which the coverage requirements were first
satisfied or were no longer met.
new text end

new text begin Subd. 4. new text end

new text begin Right to appeal. new text end

new text begin (a) No later than 30 days after receiving a determination under
subdivision 2 or 3, the affected employee may appeal the determination from a standing
review committee by filing an appeal with the human resources director or the chief human
resources director of the department or agency, as applicable, in which the employee is
employed. The appeal must include:
new text end

new text begin (1) the reasons for the appeal, including the reasons the determination should be reversed;
and
new text end

new text begin (2) new or additional information, if any, not previously submitted or considered by the
committee, including a new or revised position description.
new text end

new text begin (b) The appeal must be decided by the commissioner of corrections if the employee is
an employee of the Department of Corrections, by the commissioner of public safety if the
employee is an employee of the Department of Public Safety, or by the Metro Transit general
manager if the employee is an employee of the Metropolitan Council. The decision of the
commissioners or general manager, as applicable, is final.
new text end

new text begin (c) A determination not timely appealed under paragraph (a) is not entitled to further
administrative or judicial review. A determination under subdivision 2 or 3 or an appeal
decided under paragraph (b) may not be appealed under section 356.96.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective January 1, 2027.
new text end

ARTICLE 2

MIXED SERVICE APPROACH FOR CALCULATING ANNUITIES

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 new text begin and except as
provided in subdivision 1a new text end , a person may elect to receive, upon retirement, a retirement
annuity from each covered retirement plan, subject to the provisions of paragraph (b), if the
person has:

(1) allowable service in any two or more of the covered plans;

(2) at least one-half year of allowable service in each covered plan, based on the allowable
service in each plan;

(3) total allowable service that equals or exceeds the longest service credit vesting
requirement of the applicable retirement plan; and

(4) not begun to receive an annuity from any covered plan or made application for
benefits from each applicable plan and the retirement annuity effective dates of each plan
are within a one-year period.

(b) If all requirements in paragraph (a) have been satisfied, the retirement annuity from
each plan must be based upon the allowable service, accrual rates, and average salary in the
applicable plan except as further specified or modified in the following clauses:

(1) the laws governing annuities must be the law in effect on the date of termination
from the last period of public service under a covered retirement plan with which the person
earned a minimum of one-half year of allowable service credit during that employment;

(2) the average salary used to calculate the annuity for each formula plan must be based
on the employee's highest five successive years of covered salary during the entire service
in covered plans;

(3) the accrual rates under each plan must be the percentages prescribed by each plan's
formula in effect for the respective years of allowable service from one plan to the next,
recognizing all previous allowable service with the other covered plans;

(4) the allowable service in all the covered plans must be combined in determining
eligibility for and the application of each plan's provisions with respect to reduction in the
annuity amount for retirement prior to normal retirement age; and

(5) the annuity amount payable for any allowable service under a nonformula plan that
is a covered plan must not be affected, but such service and covered salary must be used in
the above calculation.

(c) If a person eligible for an annuity under paragraph (a) from each covered plan
terminates all public service, the deferred annuity must be augmented from the date of
termination until the earlier of:

(1) the effective date of retirement; or

(2) December 31, 2018, for the Minnesota State Retirement System and the Public
Employees Retirement Association or June 30, 2019, for the Teachers Retirement Association
and the St. Paul Teachers Retirement Association.

A deferred annuity must not be augmented after the applicable dates under clause (2).
The appropriate rate of augmentation is the rate in effect on the date on which the person
entered into public employment and subsequently adjusted according to the laws governing
each covered plan, as applicable.

(d) This section does not apply to any person whose final termination from the last public
service under a covered plan was before May 1, 1975.

(e) For the purpose of computing annuities under this section:

(1) the judges retirement fund accrual rate must not exceed 3.2 percent per year of service
for any year of service or fraction thereof;

(2) the public employees police and fire plan and the State Patrol retirement plan accrual
rate must not exceed 3.0 percent per year of service for any year of service or fraction
thereof;

(3) the legislators retirement plan accrual rate must not exceed 2.5 percent, but this limit
does not apply to the adjustment provided under section 3A.02, subdivision 1, paragraph
(c); and

(4) any other covered plan's accrual rate must not exceed 2.7 percent per year of service
for any year of service or fraction thereof.

(f) Any period of time for which a person has credit in more than one of the covered
plans must be used only once for the purpose of determining total allowable service.

(g) If the period of duplicated service credit is more than one-half year, or the person
has credit for more than one-half year, with each of the plans, each plan must apply its
formula to a prorated service credit for the period of duplicated service based on a fraction
of the salary on which deductions were paid to that fund for the period divided by the total
salary on which deductions were paid to all plans for the period.

(h) If the period of duplicated service credit is less than one-half year, or when added
to other service credit with that plan is less than one-half year, the service credit must be
ignored and a refund of contributions made to the person in accord with that plan's refund
provisions.

Sec. 2.

Minnesota Statutes 2024, section 356.30, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Exceptions for certain covered plans. new text end

new text begin (a) A person meets the requirement
of subdivision 1, paragraph (a), clause (1), and does not need to meet the requirements of
subdivision 1, paragraph (a), clauses (2) and (4), to calculate a retirement annuity pursuant
to this section if the person is eligible to receive retirement annuities from:
new text end

new text begin (1) both of the covered plans specified in subdivision 3, clauses (1) and (2);
new text end

new text begin (2) both of the covered plans specified in subdivision 3, clauses (1) and (13); or
new text end

new text begin (3) the covered plan specified in subdivision 3, clause (12), for allowable service earned
under the general employees retirement plan and the local government probation and
telecommunicator retirement plan if the person was transferred from the general employees
retirement plan to the local government probation and telecommunicator retirement plan
on January 1, 2027.
new text end

new text begin (b) This paragraph applies to a person who is eligible to receive retirement annuities
from the covered plans specified in subdivision 3, clauses (1) and (2), and any other covered
plan and who elects to calculate the retirement annuities as follows:
new text end

new text begin (1) for the retirement annuities from the covered plans specified in subdivision 3, clauses
(1) and (2), the person does not need to meet the requirements of subdivision 1, paragraph
(a), clauses (2) and (4), and may begin to receive one of the annuities and defer receiving
the other annuity; and
new text end

new text begin (2) for the retirement annuity from another covered plan, the person is entitled to have
the retirement annuity from the other covered plan calculated under this section if the person
meets the requirements of subdivision 1, paragraph (a), clauses (2) and (4), and the person
has not begun to receive an annuity from the other covered plan or made application for
benefits from the other covered plan, and the retirement annuity effective dates of either of
the covered plans specified in subdivision 3, clauses (1) and (2), and the other covered plan
are within a one-year period.
new text end

new text begin (c) This paragraph applies to a person who is eligible to receive retirement annuities
from the covered plans specified in subdivision 3, clauses (1) and (13), and any other covered
plan and who elects to calculate the retirement annuities as follows:
new text end

new text begin (1) for the retirement annuities from the covered plans specified in subdivision 3, clauses
(1) and (13), the person does not need to meet the requirements of subdivision 1, paragraph
(a), clauses (2) and (4), and may begin to receive one of the annuities and defer receiving
the other annuity; and
new text end

new text begin (2) for the retirement annuity from another covered plan, the person is entitled to have
the retirement annuity from the other covered plan calculated under this section if the person
meets the requirements of subdivision 1, paragraph (a), clauses (2) and (4), and the person
has not begun to receive an annuity from the other covered plan or made application for
benefits from the other covered plan, and the retirement annuity effective dates of either of
the covered plans specified in subdivision 3, clauses (1) and (13), and the other covered
plan are within a one-year period.
new text end

new text begin (d) This paragraph applies to a person who is eligible to receive retirement annuities
from the covered plan specified in subdivision 3, clause (12), for allowable service earned
under the general employees retirement plan, the local government probation and
telecommunicator retirement plan, and any other covered plan, and who elects to calculate
the retirement annuities as follows:
new text end

new text begin (1) for the retirement annuities from the covered plan specified in subdivision 3, clause
(12), the person does not need to meet the requirements of subdivision 1, paragraph (a),
clauses (2) and (4), and may begin to receive a retirement annuity for either the allowable
service under the general employees retirement plan or the local government probation and
telecommunicator retirement plan and defer receiving the other annuity; and
new text end

new text begin (2) for the retirement annuity from another covered plan, the person is entitled to have
the retirement annuity from the other covered plan calculated under this section if the person
meets the requirements of subdivision 1, paragraph (a), clauses (2) and (4), and the person
has not begun to receive an annuity from the other covered plan or made application for
benefits from the other covered plan, and the retirement annuity effective dates of the covered
plan specified in subdivision 3, clause (12), and the other covered plan are within a one-year
period.
new text end

new text begin (e) Subdivision 1, paragraph (b), clause (1), does not apply if a person is eligible to
receive retirement annuities from the covered plans as specified in paragraph (a). Instead,
an annuity from a covered plan specified in paragraph (a) must be calculated under the law
in effect on the date of termination of public service covered by the covered plan from which
the annuity is received.
new text end

Sec. 3.

Minnesota Statutes 2024, section 356.30, subdivision 3, is amended to read:

Subd. 3.

Covered plans.

This section applies to the following retirement plans:

(1) the general state employees retirement plan of the Minnesota State Retirement System,
established under chapter 352;

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

(3) the unclassified employees retirement program, established under chapter 352D;

(4) the State Patrol retirement plan, established under chapter 352B;

(5) the legislators retirement plan, established under chapter 3A, including constitutional
officers as specified in that chapter;

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

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

(8) the local government correctional service retirement plan of the Public Employees
Retirement Association, established under chapter 353E;

(9) the Teachers Retirement Association, established under chapter 354;

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

(11) the judges retirement fund, established by chapter 490 deleted text begin . deleted text end new text begin ;
new text end

new text begin (12) the local government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H; and
new text end

new text begin (13) the special coverage subplans, established under section 352.85, 352.86, 352.87,
or 352.88.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective January 1, 2027.
new text end

ARTICLE 3

CONFORMING CHANGES

Section 1.

Minnesota Statutes 2024, section 352.75, subdivision 2, is amended to read:

Subd. 2.

New employees.

All persons employed by the Metropolitan Council as
employees of the Transit Operating Division are new text begin :
new text end

new text begin (1) new text end members of the general state employees retirement plan of the Minnesota State
Retirement System new text begin unless specifically covered by the probation and telecommunicator
retirement subplan under section 352.88; new text end and deleted text begin are
deleted text end

new text begin (2) new text end state employees for purposes of this chapter unless specifically excluded under section
352.01, subdivision 2b.

Sec. 2.

Minnesota Statutes 2024, section 352.951, is amended to read:

352.951 APPLICABILITY OF GENERAL LAW.

Except as otherwise provided, this chapter applies to covered correctional employees,
military affairs personnel covered under section 352.85, Transportation Department pilots
covered under section 352.86, deleted text begin and deleted text end state fire marshal employees new text begin covered new text end under section
352.87 new text begin , and probation officers and public safety telecommunicators covered under section
352.88 new text end .

Sec. 3.

Minnesota Statutes 2024, section 356.315, subdivision 9, is amended to read:

Subd. 9.

Future benefit accrual rate increases.

After January 2, 1998, benefit accrual
rate increases under section 352.115, subdivision 3; 352.87, subdivision 3; new text begin 352.88,
subdivision 4; new text end 352.93, subdivision 3; 352.95, subdivision 1; 352B.08, subdivision 2; 352B.10,
subdivision 1; 353.29, subdivision 3; 353.651, subdivision 3; 353.656, subdivision 1, 1a,
or 3a; 353E.04, subdivision 3; 353E.06, subdivision 1; 354.44, subdivision 6; 354A.31,
subdivision 4 or 4a; 356.30, subdivision 1; 490.121, subdivision 22; or 490.124, subdivision
1, must apply only to allowable service or formula service rendered after the effective date
of the benefit accrual rate increase.

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective January 1, 2027.
new text end

ARTICLE 4

APPROPRIATIONS AND FUND TRANSFER

Section 1. new text begin ONETIME APPROPRIATION AND FUND TRANSFER.
new text end

new text begin (a) $....... in fiscal year 2027 is transferred from the general fund to the state probation
and telecommunicator past service account established under Minnesota Statutes, section
352.88, subdivision 8. This is a onetime transfer.
new text end

new text begin (b) Money in the state probation and telecommunicator past service account is
appropriated to the board of directors of the Minnesota State Retirement System to reduce
the cost of service credit purchases by members who elect to purchase credit for past service
under Minnesota Statutes, section 352.88, subdivision 6. This is a onetime appropriation.
new text end

Sec. 2. new text begin APPROPRIATIONS; PENSION CONTRIBUTION INCREASES.
new text end

new text begin (a) $....... in fiscal year 2027 is appropriated from the general fund to the entities specified
in paragraph (b) to offset employer pension contribution increases required of executive
branch agencies under this act. These appropriations are for additional employer contributions
to the Minnesota State Retirement System General Employees Retirement Plan for employees
in the probation and telecommunicator retirement subplan. The base for fiscal year 2027 is
$......., the base for fiscal year 2028 is $......., and the base for fiscal year 2029 and later is
$........
new text end

new text begin (b) The commissioner of management and budget must determine an allocation of the
amount appropriated in paragraph (a) for the Department of Corrections, Department of
Public Safety, and the Metropolitan Council. Each allocation is directly appropriated to
each of these entities as specified by the commissioner. The commissioner must report the
amounts appropriated under this section to the chairs and ranking minority members of the
house of representatives Ways and Means Committee and the senate Finance Committee
by August 15, 2027.
new text end