Minnesota Legislature
HF 1889
as introduced - 94th Legislature (2025 - 2026) Posted on 05/18/2025 02:20pm
Bill Text Versions
| Engrossments | ||
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| Introduction | Posted on 03/04/2025 |
Current Version - as introduced
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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; making
conforming changes to vesting requirements for deferred retirement annuities;
modifying the annual reporting requirement for plan operational and other errors;
requiring reports; amending Minnesota Statutes 2024, sections 352.22, subdivisions
2b, 3; 356.636, subdivision 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 352.22, subdivision 2b, is amended to read:
Subd. 2b.
Refund repayment.
Any person who has received a refund from the state
employees retirement plannew text begin or the correctional state employees retirement plannew text end , and who is
a member of any of the retirement plans specified in section 356.311, paragraph (b), may
repay the refund with interest to the deleted text begin state employees retirementdeleted text end plannew text begin from which the refund
was paidnew text end . If a refund is repaid to the plan and more than one refund has been received from
the plan, all refunds must be repaid. Repayment must be made as provided in section 352.23,
and under terms and conditions consistent with that section as agreed upon with the director.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2024, section 352.22, subdivision 3, is amended to read:
Subd. 3.
Deferred annuity.
(a) new text begin After separation from state service, new text end an employee deleted text begin who
has at least three years of allowable service if employed before July 1, 2010, or who has at
least five years of allowable service if employed after June 30, 2010, when termination
occursdeleted text end may elect to leave the new text begin employee's new text end accumulated contributions in the new text begin retirement new text end fund
and thereby be entitled to a deferred retirement annuitydeleted text begin .deleted text end new text begin if the employee:
new text end
new text begin
(1) is a member of the state employees retirement plan and satisfies the allowable service
requirement under section 352.115, subdivision 1, applicable to the employee; or
new text end
new text begin
(2) is a member of the correctional state employees retirement plan and satisfies the
allowable service requirement under section 352.925 applicable to the employee.
new text end
new text begin (b) new text end The annuity must be computed under the law in effect when new text begin the employee separates
from new text end state service deleted text begin terminateddeleted text end , on the basis of the allowable service credited to the person
before the deleted text begin termination ofdeleted text end new text begin separation from state new text end service.
deleted text begin (b)deleted text end new text begin (c) new text end An employee on layoff or on leave of absence without pay, except a leave of
absence for health reasons, and who does not return to state service must have an annuity,
deferred annuity, or other benefit to which the employee may become entitled computed
under the law in effect on the employee's last working day.
deleted text begin (c)deleted text end new text begin (d) new text end No application for a deferred annuity may be made more than 60 days before the
time the former employee reaches the required age for entitlement to the payment of the
annuity. The deferred annuity begins to accrue no earlier than 60 days before the date the
application is filed in the office of the system, but not (1) before the date on which the
employee reaches the required age for entitlement to the annuity nor (2) before the day
following the termination of state service in a position which is not covered by the retirement
system.
deleted text begin (d)deleted text end new text begin (e) new text end Application for the accumulated contributions left on deposit with the fund may
be made at any time following the date of the termination of service.
deleted text begin (e)deleted text end new text begin (f) new text end Deferred annuities must be augmented as provided in subdivision 3a.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively from July 1, 2023.
new text end
Sec. 3.
Minnesota Statutes 2024, section 356.636, subdivision 3, is amended to read:
Subd. 3.
Annual report.
new text begin (a) new text end The executive director of each pension fund must new text begin submit
a new text end report annuallydeleted text begin , no later than each February 1,deleted text end to the chair and executive director of the
Legislative Commission on Pensions and Retirement deleted text begin on whether the executive director of
the pension fund corrected anydeleted text end new text begin no later than each February 1. The report must describe eachnew text end
operational, demographic, employer or employee eligibility, or plan document error new text begin corrected
under subdivision 2 new text end during the preceding calendar yeardeleted text begin .deleted text end new text begin , other than:
new text end
new text begin
(1) an error corrected in the ordinary course of business; and
new text end
new text begin
(2) correction authorized by current law, including but not limited to correction authorized
under sections 352.04, 353.27, 354.42, 356.401, and 356.637.
new text end
new text begin (b) new text end The report must describe the error, the pension or retirement plan affected by the
error, the method of correction, and the cost, if any, to the pension or retirement plan,
employee, or employer of the error and correction.
new text begin
(c) An error is corrected in the ordinary course of business if it is a correction or
cancellation of an overpayment or an adjustment of an ongoing annuity amount.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end