1 | 1 | | 1.1 A bill for an act |
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2 | 2 | | 1.2 relating to retirement; public employees police and fire retirement plan; increasing |
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3 | 3 | | 1.3 the reemployment earnings limit applicable to disability benefit payments; amending |
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4 | 4 | | 1.4 Minnesota Statutes 2024, section 353.656, subdivision 4. |
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5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 353.656, subdivision 4, is amended to read: |
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7 | 7 | | 1.7 Subd. 4.Limitation on disability benefit payments.(a) No member is entitled to |
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8 | 8 | | 1.8receive a disability benefit payment when there remains to the member's credit unused |
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9 | 9 | | 1.9annual leave, sick leave, or any other employer-provided salary continuation plan, or under |
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10 | 10 | | 1.10any other circumstances when, during the period of disability, there has been no impairment |
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11 | 11 | | 1.11of the person's salary as a police officer, a firefighter, or a paramedic as defined in section |
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12 | 12 | | 1.12353.64, subdivision 10, whichever applies. |
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13 | 13 | | 1.13 (b) This paragraph applies to members who begin disability payments before July 1, |
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14 | 14 | | 1.142023, and either are not required to reapply under section 353.031, subdivision 8, or have |
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15 | 15 | | 1.15not reached the end of one year or three years, as applicable, when reapplication under |
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16 | 16 | | 1.16section 353.031, subdivision 8, is required. If a disabled member resumes a gainful |
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17 | 17 | | 1.17occupation with earnings that, when added to the single life disability benefit, and workers' |
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18 | 18 | | 1.18compensation benefit if applicable, exceed the disability benefit recipient's reemployment |
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19 | 19 | | 1.19earnings limit, the amount of the disability benefit must be reduced during the months of |
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20 | 20 | | 1.20employment and receipt of workers' compensation benefits, if applicable, as provided in |
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21 | 21 | | 1.21this paragraph. The disability benefit recipient's reemployment earnings limit is the greater |
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22 | 22 | | 1.22of (1) the monthly salary earned at the date of disability, or (2) 125 150 percent of the base |
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23 | 23 | | 1Section 1. |
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24 | 24 | | REVISOR BD/HL 25-0075812/04/24 |
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25 | 25 | | State of Minnesota |
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26 | 26 | | This Document can be made available |
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27 | 27 | | in alternative formats upon request |
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28 | 28 | | HOUSE OF REPRESENTATIVES |
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29 | 29 | | H. F. No. 243 |
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30 | 30 | | NINETY-FOURTH SESSION |
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31 | 31 | | Authored by Roach, Altendorf, Witte, Duran and Repinski01/23/2025 |
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32 | 32 | | The bill was read for the first time and referred to the Committee on State Government Finance and Policy 2.1monthly salary currently paid by the employing governmental subdivision for similar |
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33 | 33 | | 2.2positions. |
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34 | 34 | | 2.3The disability benefit must be reduced by one dollar for each three dollars by which the |
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35 | 35 | | 2.4total amount of the current monthly disability benefit, any monthly workers' compensation |
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36 | 36 | | 2.5benefits if applicable, and actual monthly earnings exceed the greater disability benefit |
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37 | 37 | | 2.6recipient's reemployment earnings limit. In no event may the monthly disability benefit as |
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38 | 38 | | 2.7adjusted under this subdivision exceed the disability benefit originally allowed. |
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39 | 39 | | 2.8 (c) This paragraph applies to members who begin disability payments or are required |
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40 | 40 | | 2.9to reapply under section 353.031, subdivision 8, on or after July 1, 2023. Beginning the |
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41 | 41 | | 2.10calendar year after application or reapplication, if a disabled member resumes a gainful |
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42 | 42 | | 2.11occupation with earnings, the amount of the member's disability benefit must be reduced |
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43 | 43 | | 2.12each year until normal retirement age by the sum of clauses (1) and (2), not to exceed the |
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44 | 44 | | 2.13amount of the member's disability benefit: |
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45 | 45 | | 2.14 (1) for members with less than 20 years of service for a duty disability benefit or less |
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46 | 46 | | 2.15than 15 years of service for a regular disability benefit, one dollar for each dollar of |
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47 | 47 | | 2.16reemployment earnings, but not more than the lesser of (i) and (ii), and not to exceed the |
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48 | 48 | | 2.17employee contribution rate as defined under section 353.65, subdivision 2, multiplied by |
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49 | 49 | | 2.18the average salary used to determine the amount of the member's disability benefit when |
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50 | 50 | | 2.19granted: |
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51 | 51 | | 2.20 (i) an amount equal to the employee contribution rate as defined under section 353.65, |
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52 | 52 | | 2.21subdivision 2, multiplied by the average salary used to determine the amount of the member's |
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53 | 53 | | 2.22disability benefit, when granted, multiplied by the difference between 20 for a duty disability |
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54 | 54 | | 2.23benefit or 15 for a regular disability benefit and the member's years of service, divided by |
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55 | 55 | | 2.2455 minus the member's age at the time of disability; or |
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56 | 56 | | 2.25 (ii) 50 percent of the member's yearly reemployment earnings; and |
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57 | 57 | | 2.26 (2) for all members: |
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58 | 58 | | 2.27 (i) one dollar for every two dollars, up to 125 150 percent of the base monthly salary, |
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59 | 59 | | 2.28by which the sum exceeds the base monthly salary; and |
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60 | 60 | | 2.29 (ii) one dollar for each dollar by which the sum exceeds 125 150 percent of the base |
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61 | 61 | | 2.30monthly salary; |
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62 | 62 | | 2.31where "sum" means the sum of the current disability benefit plus actual monthly |
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63 | 63 | | 2.32reemployment earnings and "base monthly salary" means the base monthly salary currently |
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64 | 64 | | 2.33paid by the employing governmental subdivision for similar positions. |
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65 | 65 | | 2Section 1. |
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66 | 66 | | REVISOR BD/HL 25-0075812/04/24 3.1 (d) Paragraphs (b) and (c) do not apply to a member receiving total and permanent |
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67 | 67 | | 3.2disability benefits under section 353.656, subdivision 1a or 3a. |
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68 | 68 | | 3.3 EFFECTIVE DATE.This section is effective the day following final enactment. |
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69 | 69 | | 3Section 1. |
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70 | 70 | | REVISOR BD/HL 25-0075812/04/24 |
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