1.1 A bill for an act
1.2 relating to retirement; higher education supplemental retirement plan; increasing
1.3 the maximum employer contribution; amending Minnesota Statutes 2024, section
1.4 356.24, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 356.24, subdivision 1, is amended to read:
1.7 Subdivision 1.Restriction; exceptions.It is unlawful for a school district or other
1.8governmental subdivision or state agency to levy taxes for or to contribute public funds to
1.9a supplemental pension or deferred compensation plan that is established, maintained, and
1.10operated in addition to a primary pension program for the benefit of the governmental
1.11subdivision employees other than:
1.12 (1) to a supplemental pension plan that was established, maintained, and operated before
1.13May 6, 1971;
1.14 (2) to a plan that provides solely for group health, hospital, disability, or death benefits;
1.15 (3) to the individual retirement account plan established by chapter 354B;
1.16 (4) to a plan that provides solely for severance pay under section 465.72 to a retiring or
1.17terminating employee;
1.18 (5) to a deferred compensation plan defined in subdivision 3;
1.19 (6) for personnel employed by the Board of Trustees of the Minnesota State Colleges
1.20and Universities and not covered by clause (5), to the supplemental retirement plan under
1.21chapter 354C, if the supplemental plan coverage is provided for in a personnel policy or in
1.22the collective bargaining agreement of the public employer with the exclusive representative
1Section 1.
25-03080 as introduced02/24/25 REVISOR VH/AC
SENATE
STATE OF MINNESOTA
S.F. No. 2379NINETY-FOURTH SESSION
(SENATE AUTHORS: RASMUSSON)
OFFICIAL STATUSD-PGDATE
Introduction and first reading03/10/2025
Referred to State and Local Government 2.1of the covered employees in an appropriate unit, in an amount matching employee
2.2contributions on a dollar for dollar basis, but not to exceed an employer contribution of
2.3$2,700 $4,300 a year for each employee;
2.4 (7) to a supplemental plan or to a governmental trust to save for postretirement health
2.5care expenses qualified for tax-preferred treatment under the Internal Revenue Code, if the
2.6supplemental plan coverage is provided for in a personnel policy or in the collective
2.7bargaining agreement of a public employer with the exclusive representative of the covered
2.8employees in an appropriate unit;
2.9 (8) to the laborers national industrial pension fund or to a laborers local pension fund
2.10for the employees of a governmental subdivision who are covered by a collective bargaining
2.11agreement that provides for coverage by that fund and that sets forth a fund contribution
2.12rate, but not to exceed an employer contribution of $10,000 per year per employee;
2.13 (9) to the plumbers and pipefitters national pension fund or to a plumbers and pipefitters
2.14local pension fund for the employees of a governmental subdivision who are covered by a
2.15collective bargaining agreement that provides for coverage by that fund and that sets forth
2.16a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per
2.17employee;
2.18 (10) to the international union of operating engineers pension fund for the employees
2.19of a governmental subdivision who are covered by a collective bargaining agreement that
2.20provides for coverage by that fund and that sets forth a fund contribution rate, but not to
2.21exceed an employer contribution of $10,000 per year per employee;
2.22 (11) to the International Association of Machinists national pension fund for the
2.23employees of a governmental subdivision who are covered by a collective bargaining
2.24agreement that provides for coverage by that fund and that sets forth a fund contribution
2.25rate, but not to exceed an employer contribution of $5,000 per year per employee;
2.26 (12) for employees of United Hospital District, Blue Earth, to the state of Minnesota
2.27deferred compensation program, if the employee makes a contribution, in an amount that
2.28does not exceed the total percentage of covered salary under section 353.27, subdivisions
2.293 and 3a;
2.30 (13) to the alternative retirement plans established by the Hennepin County Medical
2.31Center under section 383B.914, subdivision 5;
2.32 (14) to the International Brotherhood of Teamsters Central States pension plan for
2.33fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who
2Section 1.
25-03080 as introduced02/24/25 REVISOR VH/AC 3.1are members of the International Brotherhood of Teamsters Local 638 by virtue of that
3.2employment; or
3.3 (15) to a supplemental plan organized and operated under the Internal Revenue Code,
3.4as amended, that is wholly and solely funded by the employee's accumulated sick leave,
3.5accumulated vacation leave, and accumulated severance pay.
3.6 EFFECTIVE DATE.This section is effective the day following final enactment.
3Section 1.
25-03080 as introduced02/24/25 REVISOR VH/AC