Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2386 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to retirement; making administrative changes to statutes governing the
3	3	1.3 retirement plans administered by the Public Employees Retirement Association;
4	4	1.4 clarifying that the monthly salary threshold for required coverage must be stipulated
5	5	1.5 in advance; adding requirements for elected or appointed public officials who wish
6	6	1.6 to elect coverage by the general employees retirement plan; clarifying the
7	7	1.7 membership election period and timing to file membership election forms; adding
8	8	1.8 a 60-day requirement for filing an election with the association; clarifying the
9	9	1.9 application of the increased multiplier for members of the local government
10	10	1.10 correctional retirement plan who qualify for a duty disability benefit; amending
11	11	1.11 Minnesota Statutes 2024, sections 353.01, subdivisions 2a, 2b, 2d; 353.028,
12	12	1.12 subdivisions 2, 3; 353.34, subdivision 5; 353D.02, subdivisions 1, 2, 3, 4, 5, 6, 7;
13	13	1.13 353E.06, subdivision 1; 356.636, subdivisions 2, 3.
14	14	1.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
15	15	1.15 Section 1. Minnesota Statutes 2024, section 353.01, subdivision 2a, is amended to read:
16	16	1.16 Subd. 2a.Included employees; mandatory membership.(a) Any public employees
17	17	1.17employee whose salary from one governmental subdivision exceeds is expected to exceed
18	18	1.18$425 in any month and who are is not specifically excluded under subdivision 2b or have
19	19	1.19has not been provided an option to participate under subdivision 2d, whether individually
20	20	1.20or by action of the governmental subdivision, must participate beginning on the employee's
21	21	1.21first day of employment as members a member of the association with retirement coverage
22	22	1.22by the general employees retirement plan under this chapter, the public employees police
23	23	1.23and fire plan under this chapter, or the local government correctional employees retirement
24	24	1.24plan under chapter 353E, whichever applies. For any employee whose salary is not expected
25	25	1.25to exceed $425 in any month, membership commences as a condition of employment on
26	26	1.26the first day of employment or on the first day that the employee's salary exceeds $425 and
27	27	1Section 1.
28	28	REVISOR VH/LJ 25-0423803/10/25
29	29	State of Minnesota
30	30	This Document can be made available
31	31	in alternative formats upon request
32	32	HOUSE OF REPRESENTATIVES
33	33	H. F. No. 2386
34	34	NINETY-FOURTH SESSION
35	35	Authored by O'Driscoll, Lillie, Cha and Nadeau03/17/2025
36	36	The bill was read for the first time and referred to the Committee on State Government Finance and Policy 2.1the other eligibility criteria are met, whichever is later. Public employees include but are
37	37	2.2not limited to:
38	38	2.3 (1) persons whose salary meets the threshold in this paragraph from employment in one
39	39	2.4or more positions within one governmental subdivision;
40	40	2.5 (2) elected county sheriffs;
41	41	2.6 (3) persons who are appointed, employed, or contracted to perform governmental
42	42	2.7functions that by law or local ordinance are required of a public officer, including, but not
43	43	2.8limited to:
44	44	2.9 (i) town and city clerk or treasurer;
45	45	2.10 (ii) county auditor, treasurer, or recorder;
46	46	2.11 (iii) city manager as defined in section 353.028 who does not exercise the option provided
47	47	2.12under subdivision 2d; or
48	48	2.13 (iv) emergency management director, as provided under section 12.25;
49	49	2.14 (4) physicians under section 353D.01, subdivision 2, who do not elect public employees
50	50	2.15defined contribution plan coverage under section 353D.02, subdivision 2;
51	51	2.16 (5) full-time employees of the Dakota County Agricultural Society;
52	52	2.17 (6) employees of the Red Wing Port Authority who were first employed by the Red
53	53	2.18Wing Port Authority before May 1, 2011, and who are not excluded employees under
54	54	2.19subdivision 2b;
55	55	2.20 (7) employees of the Seaway Port Authority of Duluth who are not excluded employees
56	56	2.21under subdivision 2b;
57	57	2.22 (8) employees of the Stevens County Housing and Redevelopment Authority who were
58	58	2.23first employed by the Stevens County Housing and Redevelopment Authority before May
59	59	2.241, 2014, and who are not excluded employees under subdivision 2b;
60	60	2.25 (9) employees of the Minnesota River Area Agency on Aging who were first employed
61	61	2.26by a Regional Development Commission before January 1, 2016, and who are not excluded
62	62	2.27employees under subdivision 2b; and
63	63	2.28 (10) employees of the Public Employees Retirement Association.
64	64	2.29 (b) A public employee or elected official who was a member of the association on June
65	65	2.3030, 2002, based on employment that qualified for membership coverage by the public
66	66	2.31employees retirement plan or the public employees police and fire plan under this chapter,
67	67	2Section 1.
68	68	REVISOR VH/LJ 25-0423803/10/25 3.1or the local government correctional employees retirement plan under chapter 353E as of
69	69	3.2June 30, 2002, retains that membership for the duration of the person's employment in that
70	70	3.3position or incumbency in elected office. Except as provided in subdivision 28, the person
71	71	3.4shall participate as a member until the employee or elected official terminates public
72	72	3.5employment under subdivision 11a or terminates membership under subdivision 11b.
73	73	3.6 (c) If the salary of an included public employee is less than $425 in any subsequent
74	74	3.7month, the member retains membership eligibility.
75	75	3.8 (d) For the purpose of participation in the general employees retirement plan, public
76	76	3.9employees include employees who were members of the former Minneapolis Employees
77	77	3.10Retirement Fund on June 29, 2010.
78	78	3.11 EFFECTIVE DATE.This section is effective July 1, 2025.
79	79	3.12 Sec. 2. Minnesota Statutes 2024, section 353.01, subdivision 2b, is amended to read:
80	80	3.13 Subd. 2b.Excluded employees.(a) The following public employees are not eligible to
81	81	3.14participate as members of the association with retirement coverage by the general employees
82	82	3.15retirement plan, the local government correctional employees retirement plan under chapter
83	83	3.16353E, or the public employees police and fire plan:
84	84	3.17 (1) persons whose salary from one governmental subdivision never exceeds or is never
85	85	3.18expected to exceed $425 in a month;
86	86	3.19 (2) public officers who are elected to a governing body, city mayors, or persons who
87	87	3.20are appointed to fill a vacancy in an elected office of a governing body, whose term of office
88	88	3.21commences on or after July 1, 2002, for the service to be rendered in that elected position;
89	89	3.22 (3) election judges and persons employed solely to administer elections;
90	90	3.23 (4) patient and inmate personnel who perform services for a governmental subdivision;
91	91	3.24 (5) except as otherwise specified in subdivision 12a, employees who are employed solely
92	92	3.25in a temporary position as defined under subdivision 12a, and employees who resign from
93	93	3.26a nontemporary position and accept a temporary position within 30 days of that resignation
94	94	3.27in the same governmental subdivision;
95	95	3.28 (6) employees who are employed by reason of work emergency caused by fire, flood,
96	96	3.29storm, or similar disaster, but if the person becomes a probationary or provisional employee
97	97	3.30within the same pay period, other than on a temporary basis, the person is a "public
98	98	3.31employee" retroactively to the beginning of the pay period;
99	99	3Sec. 2.
100	100	REVISOR VH/LJ 25-0423803/10/25 4.1 (7) employees who by virtue of their employment in one governmental subdivision are
101	101	4.2required by law to be a member of and to contribute to any of the plans or funds administered
102	102	4.3by the Minnesota State Retirement System, the Teachers Retirement Association, or the St.
103	103	4.4Paul Teachers Retirement Fund Association, but this exclusion must not be construed to
104	104	4.5prevent a person from being a member of and contributing to the Public Employees
105	105	4.6Retirement Association and also belonging to and contributing to another public pension
106	106	4.7plan or fund for other service occurring during the same period of time, and a person who
107	107	4.8meets the definition of "public employee" in subdivision 2 by virtue of other service occurring
108	108	4.9during the same period of time becomes a member of the association unless contributions
109	109	4.10are made to another public retirement plan on the salary based on the other service or to the
110	110	4.11Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
111	111	4.12 (8) persons who are members of a religious order and are excluded from coverage under
112	112	4.13the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance
113	113	4.14of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if
114	114	4.15no irrevocable election of coverage has been made under section 3121(r) of the Internal
115	115	4.16Revenue Code of 1954, as amended;
116	116	4.17 (9) persons who are:
117	117	4.18 (i) employed by a governmental subdivision who have not reached the age of 23 and
118	118	4.19who are enrolled on a full-time basis to attend or are attending classes on a full-time basis
119	119	4.20at an accredited school, college, or university in an undergraduate, graduate, or
120	120	4.21professional-technical program, or at a public or charter high school;
121	121	4.22 (ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist
122	122	4.23interns and are serving in a degree or residency program in a public hospital or in a public
123	123	4.24clinic; or
124	124	4.25 (iii) students who are serving for a period not to exceed five years in an internship or a
125	125	4.26residency program that is sponsored by a governmental subdivision, including an accredited
126	126	4.27educational institution;
127	127	4.28 (10) persons who hold a part-time adult supplementary technical college license who
128	128	4.29render part-time teaching service in a technical college;
129	129	4.30 (11) for the first three years of employment, foreign citizens who are employed by a
130	130	4.31governmental subdivision, except that the following foreign citizens must be considered
131	131	4.32included employees under subdivision 2a:
132	132	4.33 (i) H-1B, H-1B1, and E-3 status holders;
133	133	4Sec. 2.
134	134	REVISOR VH/LJ 25-0423803/10/25 5.1 (ii) employees of Hennepin County or Hennepin Healthcare System, Inc.;
135	135	5.2 (iii) employees legally authorized to work in the United States for three years or more;
136	136	5.3and
137	137	5.4 (iv) employees otherwise required to participate under federal law;
138	138	5.5 (12) public hospital employees who elected not to participate as members of the
139	139	5.6association before 1972 and who did not elect to participate from July 1, 1988, to October
140	140	5.71, 1988;
141	141	5.8 (13) except as provided in section 353.86, volunteer ambulance service personnel, as
142	142	5.9defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
143	143	5.10may still qualify as public employees under subdivision 2 and may be members of the Public
144	144	5.11Employees Retirement Association and participants in the general employees retirement
145	145	5.12plan or the public employees police and fire plan, whichever applies, on the basis of
146	146	5.13compensation received from public employment service other than service as volunteer
147	147	5.14ambulance service personnel;
148	148	5.15 (14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision
149	149	5.1636, engaging in activities undertaken as part of volunteer firefighter duties, but a person
150	150	5.17who is a volunteer firefighter may still qualify as a public employee under subdivision 2
151	151	5.18and may be a member of the Public Employees Retirement Association and a participant
152	152	5.19in the general employees retirement plan or the public employees police and fire plan,
153	153	5.20whichever applies, on the basis of compensation received from public employment activities
154	154	5.21other than those as a volunteer firefighter;
155	155	5.22 (15) employees in the building and construction trades, as follows:
156	156	5.23 (i) pipefitters and associated trades personnel employed by Independent School District
157	157	5.24No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters
158	158	5.25local 455 pension plan who were either first employed after May 1, 1997, or, if first employed
159	159	5.26before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section
160	160	5.2712;
161	161	5.28 (ii) electrical workers, plumbers, carpenters, and associated trades personnel employed
162	162	5.29by Independent School District No. 625, St. Paul, or the city of St. Paul, with coverage
163	163	5.30under a collective bargaining agreement by the electrical workers local 110 pension plan,
164	164	5.31the plumbers local 34 pension plan, or the carpenters local 322 pension plan who were either
165	165	5.32first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be
166	166	5.33excluded under Laws 2000, chapter 461, article 7, section 5;
167	167	5Sec. 2.
168	168	REVISOR VH/LJ 25-0423803/10/25 6.1 (iii) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters,
169	169	6.2allied tradesworkers, and plasterers employed by the city of St. Paul or Independent School
170	170	6.3District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
171	171	6.4bricklayers and allied craftworkers local 1 pension plan, the cement masons local 633
172	172	6.5pension plan, the glaziers and glassworkers local 1324 pension plan, the painters and allied
173	173	6.6trades local 61 pension plan, or the plasterers local 265 pension plan who were either first
174	174	6.7employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded
175	175	6.8under Laws 2001, First Special Session chapter 10, article 10, section 6;
176	176	6.9 (iv) plumbers employed by the Metropolitan Airports Commission, with coverage under
177	177	6.10a collective bargaining agreement by the plumbers local 34 pension plan, who were either
178	178	6.11first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be
179	179	6.12excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;
180	180	6.13 (v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation
181	181	6.14Board, with coverage under a collective bargaining agreement by the electrical workers
182	182	6.15local 292 pension plan or the pipefitters local 539 pension plan, who were first employed
183	183	6.16before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11,
184	184	6.17section 5;
185	185	6.18 (vi) laborers and associated trades personnel employed by the city of St. Paul or
186	186	6.19Independent School District No. 625, St. Paul, who are designated as temporary employees
187	187	6.20with coverage under a collective bargaining agreement by a multiemployer plan as defined
188	188	6.21in section 356.27, subdivision 1, who were either first employed on or after June 1, 2018,
189	189	6.22or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter
190	190	6.23211, article 16, section 13; and
191	191	6.24 (vii) employees who are trades employees as defined in section 356.27, subdivision 1,
192	192	6.25first hired on or after July 1, 2020, by the city of St. Paul or Independent School District
193	193	6.26No. 625, St. Paul, except for any trades employee for whom contributions are made under
194	194	6.27section 356.24, subdivision 1, clause (8), (9), or (10), by either employer to a multiemployer
195	195	6.28plan as defined in section 356.27, subdivision 1;
196	196	6.29 (16) employees who are hired after June 30, 2002, solely to fill seasonal positions under
197	197	6.30subdivision 12b which are limited in duration by the employer to a period of six months or
198	198	6.31less in each year of employment with the governmental subdivision;
199	199	6.32 (17) persons who are provided supported employment or work-study positions by a
200	200	6.33governmental subdivision and who participate in an employment or industries program
201	201	6.34maintained for the benefit of these persons where the governmental subdivision limits the
202	202	6Sec. 2.
203	203	REVISOR VH/LJ 25-0423803/10/25 7.1position's duration to up to five years, including persons participating in a federal or state
204	204	7.2subsidized on-the-job training, work experience, senior citizen, youth, or unemployment
205	205	7.3relief program where the training or work experience is not provided as a part of, or for,
206	206	7.4future permanent public employment;
207	207	7.5 (18) independent contractors and the employees of independent contractors;
208	208	7.6 (19) reemployed annuitants of the association during the course of that reemployment;
209	209	7.7 (20) persons appointed to serve on a board or commission of a governmental subdivision
210	210	7.8or an instrumentality thereof;
211	211	7.9 (21) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan
212	212	7.10Transit Commission who are members of the International Brotherhood of Teamsters Local
213	213	7.11638 and who are, by virtue of that employment, members of the International Brotherhood
214	214	7.12of Teamsters Central States pension plan; and
215	215	7.13 (22) persons employed by the Duluth Transit Authority or any subdivision thereof who
216	216	7.14are members of the Teamsters General Local Union 346 and who are, by virtue of that
217	217	7.15employment, members of the Central States Southeast and Southwest Areas Pension Fund.
218	218	7.16 (b) Any person performing the duties of a public officer in a position defined in
219	219	7.17subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
220	220	7.18employee of an independent contractor.
221	221	7.19 EFFECTIVE DATE.This section is effective July 1, 2025.
222	222	7.20 Sec. 3. Minnesota Statutes 2024, section 353.01, subdivision 2d, is amended to read:
223	223	7.21 Subd. 2d.Optional membership.(a) Membership in the association is optional by
224	224	7.22action of the individual employee for the following public employees who meet the conditions
225	225	7.23set forth in subdivision 2a:
226	226	7.24 (1) members of the coordinated plan who are also employees of labor organizations as
227	227	7.25defined in section 353.017, subdivision 1, for their employment by the labor organization
228	228	7.26only, if they elect to have membership under section 353.017, subdivision 2;
229	229	7.27 (2) persons who are elected or persons who are appointed to elected positions, other
230	230	7.28than local governing body elected positions, and who elect to participate within 30 days of
231	231	7.29taking office by filing completing and signing a written election for membership election
232	232	7.30on a form prescribed by the executive director of the association and filing the membership
233	233	7.31election with the association within 60 days of taking office;
234	234	7Sec. 3.
235	235	REVISOR VH/LJ 25-0423803/10/25 8.1 (3) members of the association who are appointed by the governor to be a state department
236	236	8.2head and who elect not to be covered by the general state employees retirement plan of the
237	237	8.3Minnesota State Retirement System under section 352.021;
238	238	8.4 (4) city managers as defined in section 353.028, subdivision 1, who do not elect to be
239	239	8.5excluded from membership in the association under section 353.028, subdivision 2; and
240	240	8.6 (5) employees of the Port Authority of the city of St. Paul on January 1, 2003, who were
241	241	8.7at least age 45 on that date, and who elected to participate by filing a written completing
242	242	8.8and signing a membership election for membership.
243	243	8.9 (b) Membership in the association is optional by action of the governmental subdivision
244	244	8.10for the employees of the following governmental subdivisions under the conditions specified:
245	245	8.11 (1) the Minnesota Association of Townships if the board of that association, at its option,
246	246	8.12certifies to the executive director that its employees who meet the conditions set forth in
247	247	8.13subdivision 2a are to be included for purposes of retirement coverage, in which case the
248	248	8.14status of the association as a participating employer is permanent;
249	249	8.15 (2) a county historical society if the county in which the historical society is located, at
250	250	8.16its option, certifies to the executive director that the employees of the historical society who
251	251	8.17meet the conditions set forth in subdivision 2a are to be considered county employees for
252	252	8.18purposes of retirement coverage under this chapter. The status as a county employee must
253	253	8.19be accorded to all similarly situated county historical society employees and, once established,
254	254	8.20must continue as long as a person is an employee of the county historical society; and
255	255	8.21 (3) Hennepin Healthcare System, Inc., a public corporation, with respect to employees
256	256	8.22other than paramedics, emergency medical technicians, and protection officers, if the
257	257	8.23corporate board establishes alternative retirement plans for certain classes of employees of
258	258	8.24the corporation and certifies to the association the applicable employees to be excluded
259	259	8.25from future retirement coverage.
260	260	8.26 (c) For employees who are covered by paragraph (a), clause (1), (2), or (3), or covered
261	261	8.27by paragraph (b), clause (1) or (2), if the necessary membership election is not made, the
262	262	8.28employee is excluded from retirement coverage under this chapter. For employees who are
263	263	8.29covered by paragraph (a), clause (4), if the necessary election of exclusion is not made, the
264	264	8.30employee must become a member and have retirement coverage under the applicable
265	265	8.31provisions of this chapter. For employees specified in paragraph (b), clause (3), membership
266	266	8.32continues until the exclusion option is exercised for the designated class of employee.
267	267	8Sec. 3.
268	268	REVISOR VH/LJ 25-0423803/10/25 9.1 (d) The option to become a member, once exercised under this subdivision, may not be
269	269	9.2withdrawn until the termination of public service as defined under subdivision 11a.
270	270	9.3 EFFECTIVE DATE.This section is effective July 1, 2025.
271	271	9.4 Sec. 4. Minnesota Statutes 2024, section 353.028, subdivision 2, is amended to read:
272	272	9.5 Subd. 2.Election.(a) A city manager first employed by a city may make a onetime,
273	273	9.6irrevocable election to be excluded from membership in the general employees retirement
274	274	9.7plan of the association. The election of exclusion must be made within 30 days following
275	275	9.8the commencement of employment, must be made in writing on a form prescribed by the
276	276	9.9executive director, and must be approved by a resolution adopted by the governing body
277	277	9.10of the city, and must be filed with the association within 60 days of commencing employment.
278	278	9.11The election of exclusion is not effective until it is filed with the executive director.
279	279	9.12Membership of a city manager in the general employees retirement plan ceases on the date
280	280	9.13the written election of exclusion is received by the executive director. Employee and
281	281	9.14employer contributions made during the first 30 60 days of employment on behalf of a
282	282	9.15person exercising the option to be excluded from membership under this paragraph must
283	283	9.16be refunded or credited in accordance with section 353.27, subdivision 7.
284	284	9.17 (b) A city manager who has previously been an employee in any position covered by
285	285	9.18any retirement plan administered by the association to which the city contributed or by any
286	286	9.19supplemental pension or deferred compensation plan under section 356.24 sponsored by
287	287	9.20the city is not eligible to make the election under paragraph (a).
288	288	9.21 (c) Any election under paragraph (a) must include a statement that the individual will
289	289	9.22not seek authorization to purchase service credit for any period of excluded service.
290	290	9.23 EFFECTIVE DATE.This section is effective July 1, 2025.
291	291	9.24 Sec. 5. Minnesota Statutes 2024, section 353.028, subdivision 3, is amended to read:
292	292	9.25 Subd. 3.Deferred compensation; city contribution.(a) If an election of exclusion
293	293	9.26under subdivision 2 is made, and if the city manager and the governing body of the city
294	294	9.27additionally agree in writing that the additional compensation is to be deferred and is to be
295	295	9.28contributed on behalf of the city manager to a deferred compensation program that meets
296	296	9.29the requirements of section 457 of the Internal Revenue Code of 1986, as amended, and
297	297	9.30section 356.24, the governing body may compensate the city manager, in addition to the
298	298	9.31salary allowed under any limitation imposed on salaries by law or charter, in an amount
299	299	9Sec. 5.
300	300	REVISOR VH/LJ 25-0423803/10/25 10.1equal to the employer contribution that would be required by section 353.27, subdivision
301	301	10.23, if the city manager were a member of the general employees retirement plan.
302	302	10.3 (b) Alternatively, if an election of exclusion under subdivision 2 is made, the city manager
303	303	10.4and the governing body of the city may agree in writing that the equivalent employer
304	304	10.5contribution to the contribution under section 353.27, subdivision 3, be contributed by the
305	305	10.6city to the defined contribution plan of the Public Employees Retirement Association under
306	306	10.7chapter 353D. Any An election and agreement under this paragraph must be entered into
307	307	10.8within 30 days following the commencement of employment.
308	308	10.9 EFFECTIVE DATE.This section is effective July 1, 2025.
309	309	10.10Sec. 6. Minnesota Statutes 2024, section 353.34, subdivision 5, is amended to read:
310	310	10.11 Subd. 5.Right to a refund generally unlimited.Notwithstanding section 356.65, the
311	311	10.12right to a refund provided in this chapter, and laws amendatory thereof, is not restricted as
312	312	10.13to time unless specifically provided and the statute of limitation does not apply thereto.
313	313	10.14 EFFECTIVE DATE.This section is effective the day following final enactment.
314	314	10.15Sec. 7. Minnesota Statutes 2024, section 353D.02, subdivision 1, is amended to read:
315	315	10.16 Subdivision 1.Local government officials.Eligible elected or appointed local
316	316	10.17government officials may elect to participate in the defined contribution plan within the
317	317	10.18first 30 days of being elected or appointed to taking public office by filing completing and
318	318	10.19signing a membership application election on a form prescribed by the executive director
319	319	10.20of the association authorizing contributions to be deducted from the official's salary.
320	320	10.21Participation begins on the first day of the pay period for which the contributions were
321	321	10.22deducted or, if pay period coverage dates are not provided, the date on which the membership
322	322	10.23application election or contributions are received in the office of the association, whichever
323	323	10.24is received first, provided further that the membership application election is received by
324	324	10.25the association within 60 days of the receipt of the contributions taking office. An election
325	325	10.26to participate in the plan is irrevocable.
326	326	10.27 EFFECTIVE DATE.This section is effective July 1, 2025.
327	327	10.28Sec. 8. Minnesota Statutes 2024, section 353D.02, subdivision 2, is amended to read:
328	328	10.29 Subd. 2.Eligible physicians.Eligible physicians may elect to participate in the defined
329	329	10.30contribution plan within the first 30 days of commencing employment with a government
330	330	10.31subdivision under section 353.01, subdivision 6, by filing completing and signing a
331	331	10Sec. 8.
332	332	REVISOR VH/LJ 25-0423803/10/25 11.1membership application election on a form prescribed by the executive director of the
333	333	11.2association authorizing contributions to be deducted from the physician's salary and filing
334	334	11.3the membership election with the association within 60 days of commencing employment.
335	335	11.4Participation begins on the first day of the pay period for which the contributions were
336	336	11.5deducted. An election to participate in the defined contribution plan is irrevocable.
337	337	11.6 EFFECTIVE DATE.This section is effective July 1, 2025.
338	338	11.7 Sec. 9. Minnesota Statutes 2024, section 353D.02, subdivision 3, is amended to read:
339	339	11.8 Subd. 3.Eligible ambulance service personnel.Each public ambulance service with
340	340	11.9eligible personnel may elect to participate in the plan. If a service elects to participate, its
341	341	11.10eligible personnel may elect to participate or decline to participate. An individual's
342	342	11.11membership election must be made within 30 days of the service's election to participate
343	343	11.12or within 30 days of the date on which the individual began employment with the service
344	344	11.13or began to provide service for it, whichever date is later. The membership election must
345	345	11.14be received by the association within 60 days of the service's election to participate or within
346	346	11.1560 days of the date on which the individual first began employment, whichever is later. An
347	347	11.16election by a service or an individual is irrevocable.
348	348	11.17Sec. 10. Minnesota Statutes 2024, section 353D.02, subdivision 4, is amended to read:
349	349	11.18 Subd. 4.Eligible rescue squad personnel.The municipality or county, as applicable,
350	350	11.19associated with a rescue squad under section 353D.01, subdivision 2, paragraph (a), clause
351	351	11.20(4), may elect to participate in the plan. If the municipality or county, as applicable, elects
352	352	11.21to participate, the eligible personnel may elect to participate or decline to participate. An
353	353	11.22eligible individual's membership election must be made within 30 days of the service's
354	354	11.23municipality's or county's election to participate or within 30 days of the date on which the
355	355	11.24individual first began employment with the rescue squad, whichever is later. The membership
356	356	11.25election must be received by the association within 60 days of the municipality's or county's
357	357	11.26election to participate or within 60 days of the date on which the individual first began
358	358	11.27employment, whichever is later. Elections under this subdivision by a government unit or
359	359	11.28individual are irrevocable. The municipality or county, as applicable, must specify by
360	360	11.29resolution eligibility requirements for rescue squad personnel which must be satisfied if the
361	361	11.30individual is to be authorized to make the membership election under this subdivision.
362	362	11.31 EFFECTIVE DATE.This section is effective July 1, 2025.
363	363	11Sec. 10.
364	364	REVISOR VH/LJ 25-0423803/10/25 12.1 Sec. 11. Minnesota Statutes 2024, section 353D.02, subdivision 5, is amended to read:
365	365	12.2 Subd. 5.St. Paul Port Authority personnel.Employees of the Port Authority of the
366	366	12.3city of St. Paul who do not elect to participate in the general employees retirement plan may
367	367	12.4elect within the first 30 days of commencing employment to participate in the plan by filing
368	368	12.5completing and signing a membership application election on a form prescribed by the
369	369	12.6executive director of the association authorizing contributions to be deducted from the
370	370	12.7employee's salary. Participation begins on the first day of the pay period for which the
371	371	12.8contributions were deducted or, if pay period coverage dates are not provided, the date on
372	372	12.9which the membership application election or the contributions are received in the office
373	373	12.10of the association, whichever is received first, if provided the membership application
374	374	12.11election is received by the association within 60 days of the receipt of the contributions
375	375	12.12commencing employment. An election to participate in the plan is irrevocable.
376	376	12.13 EFFECTIVE DATE.This section is effective July 1, 2025.
377	377	12.14Sec. 12. Minnesota Statutes 2024, section 353D.02, subdivision 6, is amended to read:
378	378	12.15 Subd. 6.City managers.Any city managers manager who elected to be excluded within
379	379	12.1630 days of commencing employment from the general employees retirement plan of the
380	380	12.17Public Employees Retirement Association under section 353.028, subdivision 2, and who
381	381	12.18elected to participate in the plan entered into an agreement under section 353.028, subdivision
382	382	12.193, paragraph (b), with the governing body of the city by which the city manager is employed
383	383	12.20to have the city make contributions to the defined contribution plan under chapter 353D
384	384	12.21must file that an election with the executive director association within the first 30 60 days
385	385	12.22of commencing employment to participate in the defined contribution plan. The city manager
386	386	12.23must complete and sign a membership election on a form prescribed by the executive director
387	387	12.24of the association. Participation begins on the first day of the pay period next following the
388	388	12.25date of the coverage election. An election to participate by a city manager is irrevocable.
389	389	12.26 EFFECTIVE DATE.This section is effective July 1, 2025.
390	390	12.27Sec. 13. Minnesota Statutes 2024, section 353D.02, subdivision 7, is amended to read:
391	391	12.28 Subd. 7.Certain volunteer firefighters.Volunteer or on-call firefighters who are serving
392	392	12.29as members of a municipal fire department or an independent nonprofit firefighting
393	393	12.30corporation and who are not covered for that firefighting service by the public employees
394	394	12.31police and fire retirement plan under sections 353.63 to 353.68, by a firefighters relief
395	395	12.32association under chapter 424A, or by the statewide volunteer firefighter retirement plan
396	396	12.33under chapter 353G may elect to participate in the plan within the first 30 days of
397	397	12Sec. 13.
398	398	REVISOR VH/LJ 25-0423803/10/25 13.1commencing service by completing and signing a membership election on a form prescribed
399	399	13.2by the executive director of the association. The membership election must be filed with
400	400	13.3the association within 60 days of commencing service. An eligible firefighter's election is
401	401	13.4irrevocable. No employer contribution is payable by the fire department or the firefighting
402	402	13.5corporation unless the municipal governing body or the firefighting corporation governing
403	403	13.6body, whichever applies, ratifies the membership election.
404	404	13.7 EFFECTIVE DATE.This section is effective July 1, 2025.
405	405	13.8 Sec. 14. Minnesota Statutes 2024, section 353E.06, subdivision 1, is amended to read:
406	406	13.9 Subdivision 1.Duty disability qualification requirements.A member who is determined
407	407	13.10to qualify for a duty disability as defined in section 353E.001, subdivision 1, is entitled to
408	408	13.11a disability benefit. The disability benefit must be based on covered service under this
409	409	13.12chapter only and is an amount equal to 47.5 percent of the average salary defined in section
410	410	13.13353E.04, subdivision 2, plus an additional 1.9 percent, for each year of covered service
411	411	13.14under this chapter in excess of 25 years.:
412	412	13.15 (1) 1.9 percent for each year of allowable service beginning before July 1, 2025; and
413	413	13.16 (2) 2.2 percent for each year of allowable service beginning after June 30, 2025.
414	414	13.17 EFFECTIVE DATE.This section is effective the day following final enactment.
415	415	13.18Sec. 15. Minnesota Statutes 2024, section 356.636, subdivision 2, is amended to read:
416	416	13.19 Subd. 2.Correction of errors.(a) The executive director of a pension fund may correct
417	417	13.20an operational, demographic, or employer or employee eligibility error, by a pension fund
418	418	13.21or an error in a plan document that is not a statute if the executive director determines that
419	419	13.22correction is necessary or appropriate to preserve and protect the tax qualification of any
420	420	13.23pension or retirement plan listed in section 356.611, subdivision 6, that is part of administered
421	421	13.24by the pension fund. The method of correction must comply with the Internal Revenue
422	422	13.25Service Employee Plans Compliance Resolution System (EPCRS) or any successor thereto,
423	423	13.26if the EPCRS addresses the error and correction.
424	424	13.27 (b) To the extent deemed necessary by the executive director to implement correction,
425	425	13.28the executive director may:
426	426	13.29 (1) make distributions;
427	427	13.30 (2) transfer assets;
428	428	13Sec. 15.
429	429	REVISOR VH/LJ 25-0423803/10/25 14.1 (3) recover an overpayment by reducing future benefit payments or designating
430	430	14.2appropriate revenue or source of funding that will restore to the plan the amount of the
431	431	14.3overpayment; or
432	432	14.4 (4) take any other action that will restore the plan and any affected member or participant
433	433	14.5to the position the plan, member, or participant would have been in had the error not occurred.
434	434	14.6 (c) An executive director may correct an error under paragraph (a) or (b) without regard
435	435	14.7to any statute that imposes a time limitation on making such correction.
436	436	14.8 EFFECTIVE DATE.This section is effective the day following final enactment.
437	437	14.9 Sec. 16. Minnesota Statutes 2024, section 356.636, subdivision 3, is amended to read:
438	438	14.10 Subd. 3.Annual report.The executive director of each pension fund must report
439	439	14.11annually, no later than each February 1, to the chair and executive director of the Legislative
440	440	14.12Commission on Pensions and Retirement on whether the executive director of the pension
441	441	14.13fund corrected any operational, demographic, employer or employee eligibility, or plan
442	442	14.14document error during the preceding calendar year. The report must describe the error, the
443	443	14.15pension or retirement plan affected by the error, the method of correction, and the cost, if
444	444	14.16any, to the pension or retirement plan, employee, or employer of the error and correction.
445	445	14.17 EFFECTIVE DATE.This section is effective the day following final enactment.
446	446	14Sec. 16.
447	447	REVISOR VH/LJ 25-0423803/10/25