Retirement; expense apportionment modified among funds managed by the State Board of Investment, administrative changes made to statutes governing the retirement plans administered by the Minnesota State Retirement System, correctional employees clarified to remain in the correctional employees retirement plan while working for a labor organization, conforming changes made, enrollment procedures modified, correctional plan membership committee clarified to no be subject to open meeting law and agency appointment and registration requirements, and deputy fire marshals allowed to elect coverage by the state fire marshals subplan.

A bill for an act

relating to retirement; modifying expense apportionment among funds managed

by the State Board of Investment; making administrative changes to statutes

governing the retirement plans administered by the Minnesota State Retirement

System; clarifying that correctional employees remain in the correctional employees

retirement plan while working for a labor organization; making conforming changes

to retirement annuity application procedures; modifying enrollment procedures in

the state fire marshals subplan; clarifying that the correctional plan membership

committee is not subject to the open meeting law and agency appointment and

registration requirements; allowing current deputy fire marshals to elect coverage

by the state fire marshals subplan; amending Minnesota Statutes 2024, sections

11A.07, subdivision 5; 352.021, subdivision 2; 352.029, subdivisions 1, 2, 2a;

352.115, subdivisions 7a, 8, 9; 352.87, subdivisions 1, 2; Minnesota Statutes 2025

Supplement, sections 11A.04; 11A.07, subdivision 4; 352.029, subdivision 3;

352.905, by adding a subdivision; 352.907, by adding a subdivision; Laws 2025,

chapter 39, article 1, section 8; repealing Minnesota Statutes 2024, section 352.87,

subdivision 8.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2025 Supplement, section 11A.04, is amended to read:

11A.04 DUTIES AND POWERS; APPROPRIATION.

The state board shall:

(1) Act as trustees for each fund for which it invests or manages money in accordance

with the standard of care set forth in section
11A.09
if state assets are involved and in

accordance with chapter 356A if pension assets are involved.

(2) Formulate policies and procedures deemed necessary and appropriate to carry out

its functions. Procedures adopted by the
new text begin
state
new text end
board must allow fund beneficiaries and

members of the public to become informed of proposed board actions. Procedures and

policies of the
new text begin
state
new text end
board are not subject to the Administrative Procedure Act.

(3) Employ an executive director as provided in section
11A.07
.

(4)
deleted text begin
Employ
deleted text end
new text begin
Retain
new text end
investment advisors and consultants as it deems necessary.

(5) Prescribe policies concerning personal investments of all employees of the
new text begin
state
new text end

board to prevent conflicts of interest.

(6) Maintain a record of its proceedings.

(7) As it deems necessary, establish advisory committees subject to section
15.059
to

assist the
new text begin
state
new text end
board in carrying out its duties.

(8) Not permit state funds to be used for the underwriting or direct purchase of municipal

securities from the issuer or the issuer's agent.

(9) Direct the commissioner of management and budget to sell property other than money

that has escheated to the state when the
new text begin
state
new text end
board determines that sale of the property is

in the best interest of the state. Escheated property must be sold to the highest bidder in the

manner and upon terms and conditions prescribed by the
new text begin
state
new text end
board.

(10) Undertake any other activities necessary to implement the duties and powers set

forth in this section.

(11) Establish a formula or formulas to measure management performance and return

on investment. Public pension funds in the state shall utilize the formula or formulas

developed by the state board.

(12) Except as otherwise provided in article XI, section 8, of the Constitution of the state

of Minnesota,
deleted text begin
employ
deleted text end
new text begin
retain
new text end
, at its discretion, qualified
deleted text begin
private
deleted text end
new text begin
external
new text end
firms to invest
deleted text begin
and
deleted text end
new text begin
,
new text end

manage
new text begin
, or provide services with respect to
new text end
the assets of funds over which the state board

has investment management responsibility.
deleted text begin
There is annually appropriated to the state board,

from the assets of the funds for which the state board utilizes a private investment manager,

sums sufficient to pay the costs of employing private firms. Each year, by January 15, the

board shall report to the governor and legislature on the cost and the investment
deleted text end
new text begin
The state

board must include in the report required under section 11A.07, subdivision 4, clause (8),

the management fees paid under this clause and the
new text end
performance of each investment manager
deleted text begin

employed
deleted text end
new text begin
retained
new text end
by the
new text begin
state
new text end
board.

(13) Adopt an investment policy statement that includes investment objectives, asset

allocation, and the investment management structure for the retirement fund assets under

its control. The statement may be revised at the discretion of the state board. The state board

shall seek the advice of the council regarding its investment policy statement. Adoption of

the statement is not subject to chapter 14.

(14) Adopt a compensation plan setting the terms and conditions of employment for

unclassified employees of the state board pursuant to section
43A.18, subdivision 3b
.

(15) Contract, as necessary, with the board of trustees of the Minnesota State Colleges

and Universities System for the provision of investment review and selection services under

section
354B.25, subdivision 3
, and arrange for the receipt of payment for those services.

There is annually appropriated to the state board, from the assets of the funds for which

the state board provides investment services, sums sufficient to pay the
deleted text begin
costs of all necessary
deleted text end

expenses
deleted text begin
for the administration
deleted text end
of the
new text begin
state
new text end
board
new text begin
, including any fees or expenses charged

by advisors, consultants, or external firms
new text end
. These sums will be deposited in the State Board

of Investment operating account, which must be established by the commissioner of

management and budget
new text begin
in the special revenue fund
new text end
.

Sec. 2.

Minnesota Statutes 2025 Supplement, section 11A.07, subdivision 4, is amended

to read:

Subd. 4.

Duties and powers.

The
new text begin
executive
new text end
director, at the direction of the state board,

shall:

(1) plan, direct, coordinate, and execute administrative and investment functions in

conformity with the policies and directives of the state board and the requirements of this

chapter and of chapter 356A;

(2) prepare and submit biennial and annual budgets to the
new text begin
state
new text end
board and with the

approval of the
new text begin
state
new text end
board submit the budgets to the Department of Management and Budget;

(3) employ professional and clerical staff as necessary;

(4) report to the state board on all operations under the
new text begin
executive
new text end
director's control and

supervision;

(5) maintain accurate and complete records of securities transactions and official

activities;

(6) establish a policy, which is subject to state board approval, relating to the purchase

and sale of securities on the basis of competitive offerings or bids;

(7) cause securities acquired to be kept in the custody of the commissioner of management

and budget or other depositories consistent with chapter 356A, as the state board deems

appropriate;

(8) prepare and file with the director of the Legislative Reference Library a report

summarizing the activities of the state board, the council, and the
new text begin
executive
new text end
director during

the preceding fiscal year;

(9) include on the state board's website its annual report and an executive summary of

its quarterly reports;

(10) require state officials from any department or agency to produce and provide access

to any financial documents the state board deems necessary in the conduct of its investment

activities;

new text begin

(11) with respect to any fund for which the state board provides investment services,

modify the billing procedure or apportionment of expenses under subdivision 5 to the extent

the executive director determines is appropriate or necessary, with any such modification

consistent with the applicable duties in this chapter and section 356A.04;

new text end

deleted text begin

(11)
deleted text end
new text begin
(12)
new text end
receive and expend legislative appropriations; and

deleted text begin

(12)
deleted text end
new text begin
(13)
new text end
undertake any other activities necessary to implement the duties and powers

set forth in this subdivision consistent with chapter 356A.

Sec. 3.

Minnesota Statutes 2024, section 11A.07, subdivision 5, is amended to read:

Subd. 5.

Apportionment of expenses.

new text begin
(a)
new text end
The annual expenses incurred by the
deleted text begin
State

Board of Investment will
deleted text end
new text begin
state board, including any fees or expenses charged by advisors,

consultants, or external firms, must
new text end
be apportioned among
deleted text begin
the state general fund, the

retirement funds administered by the Minnesota State Retirement System, Public Employees

Retirement Association, and Teachers Retirement Association, and
deleted text end
all
deleted text begin
other
deleted text end
funds
deleted text begin
as follows:
deleted text end
new text begin

for which the state board provides investment services, in accordance with this subdivision.

There is annually appropriated to the state board, from the assets of all funds for which the

state board provides investment services, sums sufficient to pay the apportioned expenses.

These sums must be deposited in the State Board of Investment operating account, which

must be established by the commissioner of management and budget in the special revenue

fund. The sums must be apportioned as follows:
new text end

deleted text begin

(1) on a biennial basis, the State Board of Investment, in accordance with biennial budget

procedures established by the commissioner of management and budget, may request a

direct appropriation that represents the portion of the State Board of Investment expenses

necessary to provide investment services to the state general fund. This appropriation must

be deposited in the State Board of Investment operating account;

deleted text end

deleted text begin

(2)
deleted text end
new text begin
(1)
new text end
the executive director shall
new text begin
first
new text end
apportion
deleted text begin
the actual
deleted text end

new text begin
expenses allocable solely

to a specific fund, or in the case of multiple funds, among the funds proportionally based

on weighted average assets under management during the fiscal year; and
new text end

new text begin

(2) next, the executive director shall apportion the
new text end
expenses incurred by the
deleted text begin
State Board

of Investment
deleted text end
new text begin
state board
new text end
, less the
deleted text begin
charge to the state general fund
deleted text end
new text begin
charges apportioned

under clause (1) and accounting for any modification made pursuant to subdivision 4, clause

(11)
new text end
, among the funds
deleted text begin
whose assets are invested by the State Board of Investment, with the

exception of the state general fund,
deleted text end
new text begin
for which the state board provides investment services,

with such expenses allocated proportionally
new text end
based on the weighted average assets under

management during the fiscal year.
deleted text begin
The amounts necessary to pay these charges are

apportioned from the investment earnings of each fund. Receipts must be credited to the

State Board of Investment operating account;
deleted text end

deleted text begin

(3)
deleted text end
new text begin
(b)
new text end
The
deleted text begin
actual
deleted text end
expenses apportioned and charged to the funds
new text begin
under paragraph (a)
new text end
,

with the exception of
deleted text begin
the state general fund and
deleted text end
the retirement funds administered by the

Minnesota State Retirement System, Public Employees Retirement Association, and Teachers

Retirement Association, must be calculated, billed, and paid
new text begin
at least
new text end
on a quarterly basis in

accordance with procedures for interdepartmental payments established by the commissioner

of management and budget
deleted text begin
; and
deleted text end
new text begin
. Sums received to pay the expenses must be deposited in

the operating account under section 11A.04.
new text end

deleted text begin

(4)
deleted text end
new text begin
(c)
new text end
The annual estimated expenses to be incurred by the
deleted text begin
State Board of Investment
deleted text end
new text begin

state board
new text end
that will be payable by the retirement funds administered by the Minnesota State

Retirement System, Public Employees Retirement Association, and Teachers Retirement

Association must be deposited in the State Board of Investment operating account
new text begin
under

section 11A.04
new text end
on
new text begin
or about
new text end
the first business day of each fiscal year. A reconciliation of the
deleted text begin

actual
deleted text end
expenses
new text begin
allocable to each retirement fund
new text end
compared to the
new text begin
applicable
new text end
estimated
deleted text begin
costs
deleted text end
new text begin

expenses
new text end
must occur
new text begin
at least annually
new text end
at the end of
deleted text begin
each
deleted text end
new text begin
the
new text end
fiscal year
deleted text begin
with any surplus or
deleted text end
new text begin
.

Any
new text end
deficit
deleted text begin
being credited or debited to each of the respective funds. The State Board of

Investment must present a statement of accrued actual
deleted text end
new text begin
determined by such reconciliation

is due and payable to the State Board of Investment operating account promptly upon notice

of the amount due. Any fiscal year-end surplus may, at the executive director's discretion,

be retained in the operating account and credited against the following fiscal year's estimated
new text end

expenses
deleted text begin
to
deleted text end
new text begin
of
new text end
each
new text begin
respective retirement
new text end
fund
deleted text begin
at the end of each quarter during each fiscal

year
deleted text end
.
new text begin
The executive director must refund to the respective retirement fund any portion of

any surplus not credited against the following fiscal year's estimated expenses.
new text end

Sec. 4.

Minnesota Statutes 2024, section 352.021, subdivision 2, is amended to read:

Subd. 2.

State employees covered.

Every person who becomes a state employee as

defined in section
352.01
is covered by the general state employees retirement plan
new text begin
, unless

the state employee is covered by the correctional employees retirement plan under section

352.905
new text end
. Acceptance of state employment or continuance in state service is deemed to be

consent
new text begin
by the state employee
new text end
to have deductions made from salary for deposit to the credit

of the account of the state employee in the retirement fund
new text begin
of the plan that provides retirement

coverage for the state employee
new text end
.

Sec. 5.

Minnesota Statutes 2024, section 352.029, subdivision 1, is amended to read:

Subdivision 1.

Qualifications.

new text begin
(a)
new text end
Unless
deleted text begin
already
deleted text end
specifically included under section

352.01, subdivision 2a
, or unless specifically excluded under section
352.01, subdivision

2b
, a state employee
new text begin
covered by the general state employees retirement plan who is
new text end
on leave

of absence without pay to provide service as an employee or officer of a labor organization

that is an exclusive bargaining agent representing state employees may elect under

subdivision 2 to be covered by the general state employees retirement plan
deleted text begin
of the Minnesota

State Retirement System
deleted text end
for service with the labor organization, subject to the limitations

set forth in subdivisions 2a and 2b.

new text begin

(b) Unless specifically included under section 352.01, subdivision 2a, or unless

specifically excluded under section 352.01, subdivision 2b, a state employee covered by

the correctional employees retirement plan who is on leave of absence without pay to provide

service as an employee or officer of a labor organization that is an exclusive bargaining

agent representing state employees may elect under subdivision 2 to be covered by the

correctional employees retirement plan for service with the labor organization, subject to

the limitations set forth in subdivisions 2a and 2b.

new text end

Sec. 6.

Minnesota Statutes 2024, section 352.029, subdivision 2, is amended to read:

Subd. 2.

Election.

A person described in subdivision 1 is covered by the
deleted text begin
system
deleted text end
new text begin
general

employees retirement plan under subdivision 1, paragraph (a), or the correctional employees

retirement plan under subdivision 1, paragraph (b),
new text end
if
new text begin
the person delivers a
new text end
written election

to be covered
deleted text begin
is delivered
deleted text end
to the executive director within 90 days of being employed by

the labor organization
deleted text begin
,
deleted text end
or within 90 days of starting the first leave of absence
deleted text begin
with an

exclusive bargaining agent
deleted text end
new text begin
to provide service as an employee or officer of a labor

organization
new text end
, whichever is later.

Sec. 7.

Minnesota Statutes 2024, section 352.029, subdivision 2a, is amended to read:

Subd. 2a.

Limitations on salary for benefits and contributions.

(a) The covered salary

for a labor organization employee who is a member under section
352.01
, subdivision 2a,

paragraph (a), or who qualifies for membership under this section
deleted text begin
or section
352.75
deleted text end
is limited

to the lesser of:

(1) the employee's
deleted text begin
actual
deleted text end
salary as defined under section
352.01, subdivision 13
; or

(2) 75 percent of the salary of the governor as set under section
15A.082
.

(b) The limited covered salary determined under this subdivision must be used in

determining employee, employer, and
new text begin
supplemental
new text end
employer
deleted text begin
additional
deleted text end
contributions under
deleted text begin

section
deleted text end
new text begin
sections
new text end

352.04
, subdivisions 2 and 3,
new text begin
and 352.92
new text end
and in determining retirement

annuities and other benefits under this chapter and chapter 356.

Sec. 8.

Minnesota Statutes 2025 Supplement, section 352.029, subdivision 3, is amended

to read:

Subd. 3.

Contributions.

new text begin
(a)
new text end
The employee and employer contributions required by

section
352.04
deleted text begin
,
deleted text end
new text begin
for employees covered by the general state employees retirement plan
new text end
or

by section
352.92
for employees covered by
deleted text begin
section
352.905
,
deleted text end

new text begin
the correctional employees

retirement plan
new text end
are the obligation of the employee
deleted text begin
who is a member under section
352.01,

subdivision 2a
, paragraph (a), or
deleted text end
who chooses coverage under this section. However, the

employing labor organization may pay the employer contributions
new text begin
to the general state

employees retirement fund as required by section
352.04
for employees covered by the

general state employees retirement plan or to the correctional employees retirement fund

as required by section
352.92
for employees covered by the correctional employees retirement

plan
new text end
.

new text begin

(b)
new text end
Contributions made by the employee must be made by salary deduction.
deleted text begin
The

employing labor organization shall pay all contributions to the system as required by section

352.04
, or by section
352.92
for employees covered by section
352.905
.
deleted text end

Sec. 9.

Minnesota Statutes 2024, section 352.115, subdivision 7a, is amended to read:

Subd. 7a.

Application procedure.

(a) The
deleted text begin
filing of an
deleted text end
application for an annuity, refund,

disability benefit, survivor benefit, death benefit, or other
deleted text begin
monthly
deleted text end
benefit authorized by

this chapter or chapter 3A, 352B, 352D, or 490 must comply with this subdivision.

(b) Filing of an application
deleted text begin
under paragraph (a) is not complete until
deleted text end
new text begin
is effective on the

date
new text end
an original application
deleted text begin
and supporting documents are
deleted text end
new text begin
is
new text end
received in an office of the

system or received by a person authorized by the director. An original application may not

be an electronic copy or facsimile copy and if received in an office of the system, must be

delivered by personal service or mail.

(c)
deleted text begin
In this subdivision,
deleted text end
new text begin
To complete the application, supporting documents must be

received in an office of the system or received by a person authorized by the director no

later than 60 days after filing the application. Supporting documents are not required to be

original documents except as determined by the director.
new text end

deleted text begin
"
deleted text end
Supporting documents
deleted text begin
"
deleted text end
are:

(1) documents sufficient to verify birth
new text begin
date
new text end
;

(2) documents sufficient to verify marital status or establish the terms of a divorce, if

applicable; and

(3) the
new text begin
spousal
new text end
acknowledgment required by section
356.46, subdivision 3
, paragraph

(b).

deleted text begin

Supporting documents are not required to be original documents except as determined by

the director.

deleted text end

Sec. 10.

Minnesota Statutes 2024, section 352.115, subdivision 8, is amended to read:

Subd. 8.

Accrual of annuity.

new text begin
(a)
new text end
The application for an annuity must not be
deleted text begin
made
deleted text end
new text begin
filed
new text end

more than 60 days before the
deleted text begin
time
deleted text end
new text begin
date
new text end
the state employee or former state employee elects

to begin collecting a retirement annuity.

new text begin

(b)
new text end
If the director determines an applicant for annuity has fulfilled the legal requirements

for an annuity, the director shall authorize the annuity payment in accordance with this

chapter and payment must be made as authorized.

new text begin

(c)
new text end
An annuity shall begin to accrue no earlier than 180 days before the date the

application is filed with the director, but not before the day following the termination of

state service or before the day the employee is eligible to retire by reason of both age and

service requirements.

new text begin

(d)
new text end
The retirement annuity shall cease with the last payment which had accrued during

the lifetime of the retired employee unless an optional annuity provided in section
352.116,

subdivision 3
, had been selected and had become payable. The joint and last survivor annuity

shall cease with the last payment received by the survivor during the lifetime of the survivor.

If a retired employee had not selected an optional annuity, or a survivor annuity is not

payable under the option, and a spouse survives, the spouse is entitled only to the annuity

for the calendar month in which the retired employee died. If an optional annuity is payable

after the death of the retired employee, the survivor is entitled to the annuity for the calendar

month in which the retired employee died.

Sec. 11.

Minnesota Statutes 2024, section 352.115, subdivision 9, is amended to read:

Subd. 9.

Annuities payable monthly.

All annuities, and disability benefits authorized

by this chapter, must be paid in equal monthly installments and must not be increased,

decreased, or revoked except as provided in this chapter
new text begin
or chapter 356
new text end
.

Sec. 12.

Minnesota Statutes 2024, section 352.87, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

new text begin
(a)
new text end
A member of the general
new text begin
state employees retirement
new text end
plan

who is employed by the Department of Public Safety, State Fire Marshal Division, as a

deputy state fire marshal, fire/arson investigator,
deleted text begin
who elects special benefit coverage under

subdivision 8,
deleted text end
is entitled to retirement
deleted text begin
benefits
deleted text end
or disability benefits, as applicable, as stated

in this section for eligible service under this section rendered after July 1, 1999, for which

allowable service credit is received
deleted text begin
.
deleted text end
new text begin
if the member is first employed as a deputy state fire

marshal, fire/arson investigator:
new text end

new text begin

(1) before July 1, 2026, and the member elected special benefit coverage under the laws

in effect on the day the member was first employed as a deputy state fire marshal, fire/arson

investigator; or

new text end

new text begin

(2) after June 30, 2026.

new text end

new text begin

(b)
new text end
The covered member must be at least age 55 to qualify for the retirement annuity

specified in subdivision 3.

Sec. 13.

Minnesota Statutes 2024, section 352.87, subdivision 2, is amended to read:

Subd. 2.

Retirement annuity eligibility.

A person specified in subdivision 1 who meets

all eligibility requirements specified in this chapter applicable to
deleted text begin
general plan
deleted text end
members
new text begin
of

the general state employees retirement plan
new text end
is eligible for retirement benefits as specified

in subdivision 3.

Sec. 14.

Minnesota Statutes 2025 Supplement, section 352.905, is amended by adding a

subdivision to read:

new text begin

Subd. 8.

new text end

new text begin

Employees of labor organization.

new text end

new text begin

Employees who meet the coverage and

election requirements of section 352.029 will continue to be covered by the correctional

employees retirement plan.

new text end

Sec. 15.

Minnesota Statutes 2025 Supplement, section 352.907, is amended by adding a

subdivision to read:

new text begin

Subd. 7.

new text end

new text begin

Certain laws not applicable to the membership committee.

new text end

new text begin

(a) Meetings of

the correctional plan membership committee are not subject to chapter 13D.

new text end

new text begin

(b) The correctional plan membership committee is not an agency for the purposes of

sections 15.0597 and 15.0599.

new text end

Sec. 16.

Laws 2025, chapter 39, article 1, section 8, is amended to read:

Sec. 8.
STATE BOARD OF INVESTMENT

$

139,000

$

deleted text begin

139,000

deleted text end

new text begin

-0-

new text end

Sec. 17.
new text begin
ELECTION OF COVERAGE FOR CURRENT DEPUTY STATE FIRE

MARSHALS.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Definition.

new text end

new text begin

For purposes of this section, "eligible employee" means a

member of the general state employees retirement plan of the Minnesota State Retirement

System who began employment with the Department of Public Safety, State Fire Marshal

Division, as a deputy state fire marshal, fire/arson investigator, after July 31, 2021, and

before October 5, 2022.

new text end

new text begin

Subd. 2.

new text end

new text begin

Election of coverage.

new text end

new text begin

(a) An eligible employee may file a notice with the

executive director of the Minnesota State Retirement System on a form prescribed by the

executive director stating that the employee elects to be covered by section 352.87. Notice

must be filed no later than 60 days after enactment of this section.

new text end

new text begin

(b) Elections under this subdivision are irrevocable during any period of covered

employment.

new text end

new text begin

(c) An eligible employee who makes an election under this subdivision is entitled to

retirement or disability benefits, as applicable, as stated in section 352.87. Elected coverage

is effective retroactively from the first day of employment.

new text end

new text begin

(d) A failure to file a timely notice is deemed a waiver of coverage by section 352.87.

new text end

new text begin

Subd. 3.

new text end

new text begin

Calculation of additional contributions due.

new text end

new text begin

(a) Upon the request of an

eligible employee before the eligible employee files the notice electing coverage under

subdivision 2 or if an eligible employee files the notice electing coverage under subdivision

2, the executive director of the Minnesota State Retirement System must calculate:

new text end

new text begin

(1) the employee contributions that would have been deducted from the eligible

employee's salary starting with the first day of covered employment but were not deducted

because the eligible employee had not yet filed the notice electing coverage, plus interest

at the applicable rate or rates specified in section 356.59, subdivision 2; and

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(2) the employer contributions that would have been paid by the employer starting with

the eligible employee's first day of covered employment but were not deducted because the

eligible employee had not yet filed the notice electing coverage, plus interest at the applicable

rate or rates specified in section 356.59, subdivision 2.

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(b) The executive director must inform the eligible employee and the Department of

Public Service of the amounts calculated under paragraph (a) no later than 30 days after

receiving the request or the notice electing coverage from the eligible employee.

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Subd. 4.

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Payment of additional contributions.

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(a) If an eligible employee files a notice

electing coverage under subdivision 2, the eligible employee must pay the employee

contributions and interest computed under subdivision 3, paragraph (a), to the general

employees retirement fund of the Minnesota State Retirement System in a lump sum.

Payment must be made within six months of filing the notice electing coverage under

subdivision 2 or on the date the eligible employee terminates employment as a deputy state

fire marshal, fire/arson investigator, whichever is earlier.

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(b) The Department of Public Safety must pay the employer contributions and interest

computed under subdivision 3, paragraph (a), to the general employees retirement fund of

the Minnesota State Retirement System within 30 days of the date on which the executive

director of the Minnesota State Retirement System certifies to the Department of Public

Safety that the eligible employee made the payment required under paragraph (a).

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Sec. 18.
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REPEALER.
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Minnesota Statutes 2024, section 352.87, subdivision 8,

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is repealed.

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Sec. 19.
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EFFECTIVE DATE.
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Sections 1 to 18 are effective July 1, 2026.

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APPENDIX

Repealed Minnesota Statutes: H4074-1

352.87 STATE FIRE MARSHAL DIVISION EMPLOYEES.

Subd. 8.

Election of coverage.

To be covered by this section, an employee of the Department of Public Safety described in subdivision 1 who is employed in a position described in that subdivision must file a notice with the executive director of the system on a form prescribed by the executive director stating that the employee elects to be covered by this section. Notice must be filed within 90 days of employment. Elected coverage is effective retroactively as of the first day of employment. Amounts that would have been deducted from the employee's salary starting with the first day of employment but were not deducted because the employee had not yet filed the election must be deducted from the employee's future salary in accordance with a schedule of deductions determined by the executive director and the Department of Public Safety. Elections are irrevocable during any period of covered employment. A failure to file a timely notice is deemed a waiver of coverage by this section.