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