1.1 A bill for an act
1.2 relating to retirement; making administrative changes to statutes governing the
1.3 retirement plans administered by the Public Employees Retirement Association;
1.4 clarifying that the monthly salary threshold for required coverage must be stipulated
1.5 in advance; adding requirements for elected or appointed public officials who wish
1.6 to elect coverage by the general employees retirement plan; clarifying the
1.7 membership election period and timing to file membership election forms; adding
1.8 a 60-day requirement for filing an election with the association; clarifying the
1.9 application of the increased multiplier for members of the local government
1.10 correctional retirement plan who qualify for a duty disability benefit; amending
1.11 Minnesota Statutes 2024, sections 353.01, subdivisions 2a, 2b, 2d; 353.028,
1.12 subdivisions 2, 3; 353.34, subdivision 5; 353D.02, subdivisions 1, 2, 3, 4, 5, 6, 7;
1.13 353E.06, subdivision 1; 356.636, subdivisions 2, 3.
1.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.15 Section 1. Minnesota Statutes 2024, section 353.01, subdivision 2a, is amended to read:
1.16 Subd. 2a.Included employees; mandatory membership.(a) Any public employees
1.17employee whose salary from one governmental subdivision exceeds is expected to exceed
1.18$425 in any month and who are is not specifically excluded under subdivision 2b or have
1.19has not been provided an option to participate under subdivision 2d, whether individually
1.20or by action of the governmental subdivision, must participate beginning on the employee's
1.21first day of employment as members a member of the association with retirement coverage
1.22by the general employees retirement plan under this chapter, the public employees police
1.23and fire plan under this chapter, or the local government correctional employees retirement
1.24plan under chapter 353E, whichever applies. For any employee whose salary is not expected
1.25to exceed $425 in any month, membership commences as a condition of employment on
1.26the first day of employment or on the first day that the employee's salary exceeds $425 and
1Section 1.
REVISOR VH/LJ 25-0423803/10/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2386
NINETY-FOURTH SESSION
Authored by O'Driscoll, Lillie, Cha and Nadeau03/17/2025
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
2.2not limited to:
2.3 (1) persons whose salary meets the threshold in this paragraph from employment in one
2.4or more positions within one governmental subdivision;
2.5 (2) elected county sheriffs;
2.6 (3) persons who are appointed, employed, or contracted to perform governmental
2.7functions that by law or local ordinance are required of a public officer, including, but not
2.8limited to:
2.9 (i) town and city clerk or treasurer;
2.10 (ii) county auditor, treasurer, or recorder;
2.11 (iii) city manager as defined in section 353.028 who does not exercise the option provided
2.12under subdivision 2d; or
2.13 (iv) emergency management director, as provided under section 12.25;
2.14 (4) physicians under section 353D.01, subdivision 2, who do not elect public employees
2.15defined contribution plan coverage under section 353D.02, subdivision 2;
2.16 (5) full-time employees of the Dakota County Agricultural Society;
2.17 (6) employees of the Red Wing Port Authority who were first employed by the Red
2.18Wing Port Authority before May 1, 2011, and who are not excluded employees under
2.19subdivision 2b;
2.20 (7) employees of the Seaway Port Authority of Duluth who are not excluded employees
2.21under subdivision 2b;
2.22 (8) employees of the Stevens County Housing and Redevelopment Authority who were
2.23first employed by the Stevens County Housing and Redevelopment Authority before May
2.241, 2014, and who are not excluded employees under subdivision 2b;
2.25 (9) employees of the Minnesota River Area Agency on Aging who were first employed
2.26by a Regional Development Commission before January 1, 2016, and who are not excluded
2.27employees under subdivision 2b; and
2.28 (10) employees of the Public Employees Retirement Association.
2.29 (b) A public employee or elected official who was a member of the association on June
2.3030, 2002, based on employment that qualified for membership coverage by the public
2.31employees retirement plan or the public employees police and fire plan under this chapter,
2Section 1.
REVISOR VH/LJ 25-0423803/10/25 3.1or the local government correctional employees retirement plan under chapter 353E as of
3.2June 30, 2002, retains that membership for the duration of the person's employment in that
3.3position or incumbency in elected office. Except as provided in subdivision 28, the person
3.4shall participate as a member until the employee or elected official terminates public
3.5employment under subdivision 11a or terminates membership under subdivision 11b.
3.6 (c) If the salary of an included public employee is less than $425 in any subsequent
3.7month, the member retains membership eligibility.
3.8 (d) For the purpose of participation in the general employees retirement plan, public
3.9employees include employees who were members of the former Minneapolis Employees
3.10Retirement Fund on June 29, 2010.
3.11 EFFECTIVE DATE.This section is effective July 1, 2025.
3.12 Sec. 2. Minnesota Statutes 2024, section 353.01, subdivision 2b, is amended to read:
3.13 Subd. 2b.Excluded employees.(a) The following public employees are not eligible to
3.14participate as members of the association with retirement coverage by the general employees
3.15retirement plan, the local government correctional employees retirement plan under chapter
3.16353E, or the public employees police and fire plan:
3.17 (1) persons whose salary from one governmental subdivision never exceeds or is never
3.18expected to exceed $425 in a month;
3.19 (2) public officers who are elected to a governing body, city mayors, or persons who
3.20are appointed to fill a vacancy in an elected office of a governing body, whose term of office
3.21commences on or after July 1, 2002, for the service to be rendered in that elected position;
3.22 (3) election judges and persons employed solely to administer elections;
3.23 (4) patient and inmate personnel who perform services for a governmental subdivision;
3.24 (5) except as otherwise specified in subdivision 12a, employees who are employed solely
3.25in a temporary position as defined under subdivision 12a, and employees who resign from
3.26a nontemporary position and accept a temporary position within 30 days of that resignation
3.27in the same governmental subdivision;
3.28 (6) employees who are employed by reason of work emergency caused by fire, flood,
3.29storm, or similar disaster, but if the person becomes a probationary or provisional employee
3.30within the same pay period, other than on a temporary basis, the person is a "public
3.31employee" retroactively to the beginning of the pay period;
3Sec. 2.
REVISOR VH/LJ 25-0423803/10/25 4.1 (7) employees who by virtue of their employment in one governmental subdivision are
4.2required by law to be a member of and to contribute to any of the plans or funds administered
4.3by the Minnesota State Retirement System, the Teachers Retirement Association, or the St.
4.4Paul Teachers Retirement Fund Association, but this exclusion must not be construed to
4.5prevent a person from being a member of and contributing to the Public Employees
4.6Retirement Association and also belonging to and contributing to another public pension
4.7plan or fund for other service occurring during the same period of time, and a person who
4.8meets the definition of "public employee" in subdivision 2 by virtue of other service occurring
4.9during the same period of time becomes a member of the association unless contributions
4.10are made to another public retirement plan on the salary based on the other service or to the
4.11Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
4.12 (8) persons who are members of a religious order and are excluded from coverage under
4.13the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance
4.14of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if
4.15no irrevocable election of coverage has been made under section 3121(r) of the Internal
4.16Revenue Code of 1954, as amended;
4.17 (9) persons who are:
4.18 (i) employed by a governmental subdivision who have not reached the age of 23 and
4.19who are enrolled on a full-time basis to attend or are attending classes on a full-time basis
4.20at an accredited school, college, or university in an undergraduate, graduate, or
4.21professional-technical program, or at a public or charter high school;
4.22 (ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist
4.23interns and are serving in a degree or residency program in a public hospital or in a public
4.24clinic; or
4.25 (iii) students who are serving for a period not to exceed five years in an internship or a
4.26residency program that is sponsored by a governmental subdivision, including an accredited
4.27educational institution;
4.28 (10) persons who hold a part-time adult supplementary technical college license who
4.29render part-time teaching service in a technical college;
4.30 (11) for the first three years of employment, foreign citizens who are employed by a
4.31governmental subdivision, except that the following foreign citizens must be considered
4.32included employees under subdivision 2a:
4.33 (i) H-1B, H-1B1, and E-3 status holders;
4Sec. 2.
REVISOR VH/LJ 25-0423803/10/25 5.1 (ii) employees of Hennepin County or Hennepin Healthcare System, Inc.;
5.2 (iii) employees legally authorized to work in the United States for three years or more;
5.3and
5.4 (iv) employees otherwise required to participate under federal law;
5.5 (12) public hospital employees who elected not to participate as members of the
5.6association before 1972 and who did not elect to participate from July 1, 1988, to October
5.71, 1988;
5.8 (13) except as provided in section 353.86, volunteer ambulance service personnel, as
5.9defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
5.10may still qualify as public employees under subdivision 2 and may be members of the Public
5.11Employees Retirement Association and participants in the general employees retirement
5.12plan or the public employees police and fire plan, whichever applies, on the basis of
5.13compensation received from public employment service other than service as volunteer
5.14ambulance service personnel;
5.15 (14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision
5.1636, engaging in activities undertaken as part of volunteer firefighter duties, but a person
5.17who is a volunteer firefighter may still qualify as a public employee under subdivision 2
5.18and may be a member of the Public Employees Retirement Association and a participant
5.19in the general employees retirement plan or the public employees police and fire plan,
5.20whichever applies, on the basis of compensation received from public employment activities
5.21other than those as a volunteer firefighter;
5.22 (15) employees in the building and construction trades, as follows:
5.23 (i) pipefitters and associated trades personnel employed by Independent School District
5.24No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters
5.25local 455 pension plan who were either first employed after May 1, 1997, or, if first employed
5.26before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section
5.2712;
5.28 (ii) electrical workers, plumbers, carpenters, and associated trades personnel employed
5.29by Independent School District No. 625, St. Paul, or the city of St. Paul, with coverage
5.30under a collective bargaining agreement by the electrical workers local 110 pension plan,
5.31the plumbers local 34 pension plan, or the carpenters local 322 pension plan who were either
5.32first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be
5.33excluded under Laws 2000, chapter 461, article 7, section 5;
5Sec. 2.
REVISOR VH/LJ 25-0423803/10/25 6.1 (iii) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters,
6.2allied tradesworkers, and plasterers employed by the city of St. Paul or Independent School
6.3District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
6.4bricklayers and allied craftworkers local 1 pension plan, the cement masons local 633
6.5pension plan, the glaziers and glassworkers local 1324 pension plan, the painters and allied
6.6trades local 61 pension plan, or the plasterers local 265 pension plan who were either first
6.7employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded
6.8under Laws 2001, First Special Session chapter 10, article 10, section 6;
6.9 (iv) plumbers employed by the Metropolitan Airports Commission, with coverage under
6.10a collective bargaining agreement by the plumbers local 34 pension plan, who were either
6.11first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be
6.12excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;
6.13 (v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation
6.14Board, with coverage under a collective bargaining agreement by the electrical workers
6.15local 292 pension plan or the pipefitters local 539 pension plan, who were first employed
6.16before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11,
6.17section 5;
6.18 (vi) laborers and associated trades personnel employed by the city of St. Paul or
6.19Independent School District No. 625, St. Paul, who are designated as temporary employees
6.20with coverage under a collective bargaining agreement by a multiemployer plan as defined
6.21in section 356.27, subdivision 1, who were either first employed on or after June 1, 2018,
6.22or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter
6.23211, article 16, section 13; and
6.24 (vii) employees who are trades employees as defined in section 356.27, subdivision 1,
6.25first hired on or after July 1, 2020, by the city of St. Paul or Independent School District
6.26No. 625, St. Paul, except for any trades employee for whom contributions are made under
6.27section 356.24, subdivision 1, clause (8), (9), or (10), by either employer to a multiemployer
6.28plan as defined in section 356.27, subdivision 1;
6.29 (16) employees who are hired after June 30, 2002, solely to fill seasonal positions under
6.30subdivision 12b which are limited in duration by the employer to a period of six months or
6.31less in each year of employment with the governmental subdivision;
6.32 (17) persons who are provided supported employment or work-study positions by a
6.33governmental subdivision and who participate in an employment or industries program
6.34maintained for the benefit of these persons where the governmental subdivision limits the
6Sec. 2.
REVISOR VH/LJ 25-0423803/10/25 7.1position's duration to up to five years, including persons participating in a federal or state
7.2subsidized on-the-job training, work experience, senior citizen, youth, or unemployment
7.3relief program where the training or work experience is not provided as a part of, or for,
7.4future permanent public employment;
7.5 (18) independent contractors and the employees of independent contractors;
7.6 (19) reemployed annuitants of the association during the course of that reemployment;
7.7 (20) persons appointed to serve on a board or commission of a governmental subdivision
7.8or an instrumentality thereof;
7.9 (21) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan
7.10Transit Commission who are members of the International Brotherhood of Teamsters Local
7.11638 and who are, by virtue of that employment, members of the International Brotherhood
7.12of Teamsters Central States pension plan; and
7.13 (22) persons employed by the Duluth Transit Authority or any subdivision thereof who
7.14are members of the Teamsters General Local Union 346 and who are, by virtue of that
7.15employment, members of the Central States Southeast and Southwest Areas Pension Fund.
7.16 (b) Any person performing the duties of a public officer in a position defined in
7.17subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
7.18employee of an independent contractor.
7.19 EFFECTIVE DATE.This section is effective July 1, 2025.
7.20 Sec. 3. Minnesota Statutes 2024, section 353.01, subdivision 2d, is amended to read:
7.21 Subd. 2d.Optional membership.(a) Membership in the association is optional by
7.22action of the individual employee for the following public employees who meet the conditions
7.23set forth in subdivision 2a:
7.24 (1) members of the coordinated plan who are also employees of labor organizations as
7.25defined in section 353.017, subdivision 1, for their employment by the labor organization
7.26only, if they elect to have membership under section 353.017, subdivision 2;
7.27 (2) persons who are elected or persons who are appointed to elected positions, other
7.28than local governing body elected positions, and who elect to participate within 30 days of
7.29taking office by filing completing and signing a written election for membership election
7.30on a form prescribed by the executive director of the association and filing the membership
7.31election with the association within 60 days of taking office;
7Sec. 3.
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
8.2head and who elect not to be covered by the general state employees retirement plan of the
8.3Minnesota State Retirement System under section 352.021;
8.4 (4) city managers as defined in section 353.028, subdivision 1, who do not elect to be
8.5excluded from membership in the association under section 353.028, subdivision 2; and
8.6 (5) employees of the Port Authority of the city of St. Paul on January 1, 2003, who were
8.7at least age 45 on that date, and who elected to participate by filing a written completing
8.8and signing a membership election for membership.
8.9 (b) Membership in the association is optional by action of the governmental subdivision
8.10for the employees of the following governmental subdivisions under the conditions specified:
8.11 (1) the Minnesota Association of Townships if the board of that association, at its option,
8.12certifies to the executive director that its employees who meet the conditions set forth in
8.13subdivision 2a are to be included for purposes of retirement coverage, in which case the
8.14status of the association as a participating employer is permanent;
8.15 (2) a county historical society if the county in which the historical society is located, at
8.16its option, certifies to the executive director that the employees of the historical society who
8.17meet the conditions set forth in subdivision 2a are to be considered county employees for
8.18purposes of retirement coverage under this chapter. The status as a county employee must
8.19be accorded to all similarly situated county historical society employees and, once established,
8.20must continue as long as a person is an employee of the county historical society; and
8.21 (3) Hennepin Healthcare System, Inc., a public corporation, with respect to employees
8.22other than paramedics, emergency medical technicians, and protection officers, if the
8.23corporate board establishes alternative retirement plans for certain classes of employees of
8.24the corporation and certifies to the association the applicable employees to be excluded
8.25from future retirement coverage.
8.26 (c) For employees who are covered by paragraph (a), clause (1), (2), or (3), or covered
8.27by paragraph (b), clause (1) or (2), if the necessary membership election is not made, the
8.28employee is excluded from retirement coverage under this chapter. For employees who are
8.29covered by paragraph (a), clause (4), if the necessary election of exclusion is not made, the
8.30employee must become a member and have retirement coverage under the applicable
8.31provisions of this chapter. For employees specified in paragraph (b), clause (3), membership
8.32continues until the exclusion option is exercised for the designated class of employee.
8Sec. 3.
REVISOR VH/LJ 25-0423803/10/25 9.1 (d) The option to become a member, once exercised under this subdivision, may not be
9.2withdrawn until the termination of public service as defined under subdivision 11a.
9.3 EFFECTIVE DATE.This section is effective July 1, 2025.
9.4 Sec. 4. Minnesota Statutes 2024, section 353.028, subdivision 2, is amended to read:
9.5 Subd. 2.Election.(a) A city manager first employed by a city may make a onetime,
9.6irrevocable election to be excluded from membership in the general employees retirement
9.7plan of the association. The election of exclusion must be made within 30 days following
9.8the commencement of employment, must be made in writing on a form prescribed by the
9.9executive director, and must be approved by a resolution adopted by the governing body
9.10of the city, and must be filed with the association within 60 days of commencing employment.
9.11The election of exclusion is not effective until it is filed with the executive director.
9.12Membership of a city manager in the general employees retirement plan ceases on the date
9.13the written election of exclusion is received by the executive director. Employee and
9.14employer contributions made during the first 30 60 days of employment on behalf of a
9.15person exercising the option to be excluded from membership under this paragraph must
9.16be refunded or credited in accordance with section 353.27, subdivision 7.
9.17 (b) A city manager who has previously been an employee in any position covered by
9.18any retirement plan administered by the association to which the city contributed or by any
9.19supplemental pension or deferred compensation plan under section 356.24 sponsored by
9.20the city is not eligible to make the election under paragraph (a).
9.21 (c) Any election under paragraph (a) must include a statement that the individual will
9.22not seek authorization to purchase service credit for any period of excluded service.
9.23 EFFECTIVE DATE.This section is effective July 1, 2025.
9.24 Sec. 5. Minnesota Statutes 2024, section 353.028, subdivision 3, is amended to read:
9.25 Subd. 3.Deferred compensation; city contribution.(a) If an election of exclusion
9.26under subdivision 2 is made, and if the city manager and the governing body of the city
9.27additionally agree in writing that the additional compensation is to be deferred and is to be
9.28contributed on behalf of the city manager to a deferred compensation program that meets
9.29the requirements of section 457 of the Internal Revenue Code of 1986, as amended, and
9.30section 356.24, the governing body may compensate the city manager, in addition to the
9.31salary allowed under any limitation imposed on salaries by law or charter, in an amount
9Sec. 5.
REVISOR VH/LJ 25-0423803/10/25 10.1equal to the employer contribution that would be required by section 353.27, subdivision
10.23, if the city manager were a member of the general employees retirement plan.
10.3 (b) Alternatively, if an election of exclusion under subdivision 2 is made, the city manager
10.4and the governing body of the city may agree in writing that the equivalent employer
10.5contribution to the contribution under section 353.27, subdivision 3, be contributed by the
10.6city to the defined contribution plan of the Public Employees Retirement Association under
10.7chapter 353D. Any An election and agreement under this paragraph must be entered into
10.8within 30 days following the commencement of employment.
10.9 EFFECTIVE DATE.This section is effective July 1, 2025.
10.10Sec. 6. Minnesota Statutes 2024, section 353.34, subdivision 5, is amended to read:
10.11 Subd. 5.Right to a refund generally unlimited.Notwithstanding section 356.65, the
10.12right to a refund provided in this chapter, and laws amendatory thereof, is not restricted as
10.13to time unless specifically provided and the statute of limitation does not apply thereto.
10.14 EFFECTIVE DATE.This section is effective the day following final enactment.
10.15Sec. 7. Minnesota Statutes 2024, section 353D.02, subdivision 1, is amended to read:
10.16 Subdivision 1.Local government officials.Eligible elected or appointed local
10.17government officials may elect to participate in the defined contribution plan within the
10.18first 30 days of being elected or appointed to taking public office by filing completing and
10.19signing a membership application election on a form prescribed by the executive director
10.20of the association authorizing contributions to be deducted from the official's salary.
10.21Participation begins on the first day of the pay period for which the contributions were
10.22deducted or, if pay period coverage dates are not provided, the date on which the membership
10.23application election or contributions are received in the office of the association, whichever
10.24is received first, provided further that the membership application election is received by
10.25the association within 60 days of the receipt of the contributions taking office. An election
10.26to participate in the plan is irrevocable.
10.27 EFFECTIVE DATE.This section is effective July 1, 2025.
10.28Sec. 8. Minnesota Statutes 2024, section 353D.02, subdivision 2, is amended to read:
10.29 Subd. 2.Eligible physicians.Eligible physicians may elect to participate in the defined
10.30contribution plan within the first 30 days of commencing employment with a government
10.31subdivision under section 353.01, subdivision 6, by filing completing and signing a
10Sec. 8.
REVISOR VH/LJ 25-0423803/10/25 11.1membership application election on a form prescribed by the executive director of the
11.2association authorizing contributions to be deducted from the physician's salary and filing
11.3the membership election with the association within 60 days of commencing employment.
11.4Participation begins on the first day of the pay period for which the contributions were
11.5deducted. An election to participate in the defined contribution plan is irrevocable.
11.6 EFFECTIVE DATE.This section is effective July 1, 2025.
11.7 Sec. 9. Minnesota Statutes 2024, section 353D.02, subdivision 3, is amended to read:
11.8 Subd. 3.Eligible ambulance service personnel.Each public ambulance service with
11.9eligible personnel may elect to participate in the plan. If a service elects to participate, its
11.10eligible personnel may elect to participate or decline to participate. An individual's
11.11membership election must be made within 30 days of the service's election to participate
11.12or within 30 days of the date on which the individual began employment with the service
11.13or began to provide service for it, whichever date is later. The membership election must
11.14be received by the association within 60 days of the service's election to participate or within
11.1560 days of the date on which the individual first began employment, whichever is later. An
11.16election by a service or an individual is irrevocable.
11.17Sec. 10. Minnesota Statutes 2024, section 353D.02, subdivision 4, is amended to read:
11.18 Subd. 4.Eligible rescue squad personnel.The municipality or county, as applicable,
11.19associated with a rescue squad under section 353D.01, subdivision 2, paragraph (a), clause
11.20(4), may elect to participate in the plan. If the municipality or county, as applicable, elects
11.21to participate, the eligible personnel may elect to participate or decline to participate. An
11.22eligible individual's membership election must be made within 30 days of the service's
11.23municipality's or county's election to participate or within 30 days of the date on which the
11.24individual first began employment with the rescue squad, whichever is later. The membership
11.25election must be received by the association within 60 days of the municipality's or county's
11.26election to participate or within 60 days of the date on which the individual first began
11.27employment, whichever is later. Elections under this subdivision by a government unit or
11.28individual are irrevocable. The municipality or county, as applicable, must specify by
11.29resolution eligibility requirements for rescue squad personnel which must be satisfied if the
11.30individual is to be authorized to make the membership election under this subdivision.
11.31 EFFECTIVE DATE.This section is effective July 1, 2025.
11Sec. 10.
REVISOR VH/LJ 25-0423803/10/25 12.1 Sec. 11. Minnesota Statutes 2024, section 353D.02, subdivision 5, is amended to read:
12.2 Subd. 5.St. Paul Port Authority personnel.Employees of the Port Authority of the
12.3city of St. Paul who do not elect to participate in the general employees retirement plan may
12.4elect within the first 30 days of commencing employment to participate in the plan by filing
12.5completing and signing a membership application election on a form prescribed by the
12.6executive director of the association authorizing contributions to be deducted from the
12.7employee's salary. Participation begins on the first day of the pay period for which the
12.8contributions were deducted or, if pay period coverage dates are not provided, the date on
12.9which the membership application election or the contributions are received in the office
12.10of the association, whichever is received first, if provided the membership application
12.11election is received by the association within 60 days of the receipt of the contributions
12.12commencing employment. An election to participate in the plan is irrevocable.
12.13 EFFECTIVE DATE.This section is effective July 1, 2025.
12.14Sec. 12. Minnesota Statutes 2024, section 353D.02, subdivision 6, is amended to read:
12.15 Subd. 6.City managers.Any city managers manager who elected to be excluded within
12.1630 days of commencing employment from the general employees retirement plan of the
12.17Public Employees Retirement Association under section 353.028, subdivision 2, and who
12.18elected to participate in the plan entered into an agreement under section 353.028, subdivision
12.193, paragraph (b), with the governing body of the city by which the city manager is employed
12.20to have the city make contributions to the defined contribution plan under chapter 353D
12.21must file that an election with the executive director association within the first 30 60 days
12.22of commencing employment to participate in the defined contribution plan. The city manager
12.23must complete and sign a membership election on a form prescribed by the executive director
12.24of the association. Participation begins on the first day of the pay period next following the
12.25date of the coverage election. An election to participate by a city manager is irrevocable.
12.26 EFFECTIVE DATE.This section is effective July 1, 2025.
12.27Sec. 13. Minnesota Statutes 2024, section 353D.02, subdivision 7, is amended to read:
12.28 Subd. 7.Certain volunteer firefighters.Volunteer or on-call firefighters who are serving
12.29as members of a municipal fire department or an independent nonprofit firefighting
12.30corporation and who are not covered for that firefighting service by the public employees
12.31police and fire retirement plan under sections 353.63 to 353.68, by a firefighters relief
12.32association under chapter 424A, or by the statewide volunteer firefighter retirement plan
12.33under chapter 353G may elect to participate in the plan within the first 30 days of
12Sec. 13.
REVISOR VH/LJ 25-0423803/10/25 13.1commencing service by completing and signing a membership election on a form prescribed
13.2by the executive director of the association. The membership election must be filed with
13.3the association within 60 days of commencing service. An eligible firefighter's election is
13.4irrevocable. No employer contribution is payable by the fire department or the firefighting
13.5corporation unless the municipal governing body or the firefighting corporation governing
13.6body, whichever applies, ratifies the membership election.
13.7 EFFECTIVE DATE.This section is effective July 1, 2025.
13.8 Sec. 14. Minnesota Statutes 2024, section 353E.06, subdivision 1, is amended to read:
13.9 Subdivision 1.Duty disability qualification requirements.A member who is determined
13.10to qualify for a duty disability as defined in section 353E.001, subdivision 1, is entitled to
13.11a disability benefit. The disability benefit must be based on covered service under this
13.12chapter only and is an amount equal to 47.5 percent of the average salary defined in section
13.13353E.04, subdivision 2, plus an additional 1.9 percent, for each year of covered service
13.14under this chapter in excess of 25 years.:
13.15 (1) 1.9 percent for each year of allowable service beginning before July 1, 2025; and
13.16 (2) 2.2 percent for each year of allowable service beginning after June 30, 2025.
13.17 EFFECTIVE DATE.This section is effective the day following final enactment.
13.18Sec. 15. Minnesota Statutes 2024, section 356.636, subdivision 2, is amended to read:
13.19 Subd. 2.Correction of errors.(a) The executive director of a pension fund may correct
13.20an operational, demographic, or employer or employee eligibility error, by a pension fund
13.21or an error in a plan document that is not a statute if the executive director determines that
13.22correction is necessary or appropriate to preserve and protect the tax qualification of any
13.23pension or retirement plan listed in section 356.611, subdivision 6, that is part of administered
13.24by the pension fund. The method of correction must comply with the Internal Revenue
13.25Service Employee Plans Compliance Resolution System (EPCRS) or any successor thereto,
13.26if the EPCRS addresses the error and correction.
13.27 (b) To the extent deemed necessary by the executive director to implement correction,
13.28the executive director may:
13.29 (1) make distributions;
13.30 (2) transfer assets;
13Sec. 15.
REVISOR VH/LJ 25-0423803/10/25 14.1 (3) recover an overpayment by reducing future benefit payments or designating
14.2appropriate revenue or source of funding that will restore to the plan the amount of the
14.3overpayment; or
14.4 (4) take any other action that will restore the plan and any affected member or participant
14.5to the position the plan, member, or participant would have been in had the error not occurred.
14.6 (c) An executive director may correct an error under paragraph (a) or (b) without regard
14.7to any statute that imposes a time limitation on making such correction.
14.8 EFFECTIVE DATE.This section is effective the day following final enactment.
14.9 Sec. 16. Minnesota Statutes 2024, section 356.636, subdivision 3, is amended to read:
14.10 Subd. 3.Annual report.The executive director of each pension fund must report
14.11annually, no later than each February 1, to the chair and executive director of the Legislative
14.12Commission on Pensions and Retirement on whether the executive director of the pension
14.13fund corrected any operational, demographic, employer or employee eligibility, or plan
14.14document error during the preceding calendar year. The report must describe the error, the
14.15pension or retirement plan affected by the error, the method of correction, and the cost, if
14.16any, to the pension or retirement plan, employee, or employer of the error and correction.
14.17 EFFECTIVE DATE.This section is effective the day following final enactment.
14Sec. 16.
REVISOR VH/LJ 25-0423803/10/25