Public employees police and fire retirement plan; payment of retirement annuity without reduction or suspension upon reemployment authorized.

A bill for an act

relating to retirement; public employees police and fire retirement plan; authorizing

payment of a retirement annuity without reduction or suspension upon

reemployment; amending Minnesota Statutes 2024, section 353.37, subdivisions

1, 5, by adding a subdivision; proposing coding for new law in Minnesota Statutes,

chapter 353.

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

Section 1.

Minnesota Statutes 2024, section 353.37, subdivision 1, is amended to read:

Subdivision 1.

Salary maximums.

(a) If a member who is receiving an annuity from a

retirement plan administered by the association
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, other than the public employees police and

fire retirement plan,
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is employed by (1) a governmental employer in a nonelected position

not required by law to be covered by a plan administered by the Minnesota State Retirement

System, the Teachers Retirement Association, or the St. Paul Teachers Retirement Fund

Association, or (2) by a labor organization that represents public employees who are

association members under this chapter, and the member's salary exceeds the annual

maximum salary defined in paragraph (b), the annuity shall be suspended under subdivision

2 or reduced under subdivision 3, whichever results in the higher annuity amount.

(b) The annual maximum salary means the annual maximum earnings allowable at the

member's age for the continued receipt of full benefit amounts monthly under the federal

Old Age, Survivors and Disability Insurance Program as set by the secretary of health and

human services under United States Code, title 42, section 403, in effect for the calendar

year. If the member has not yet reached the minimum age for the receipt of Social Security

benefits, the maximum salary means the annual maximum earnings allowable for the

minimum age for the receipt of Social Security benefits.

(c) The provisions of paragraph (a) do not apply to the members of the general employees

plan of the Public Employees Retirement Association who were former members of MERF.

Sec. 2.

Minnesota Statutes 2024, section 353.37, subdivision 5, is amended to read:

Subd. 5.

Effect on annuity.

Except as provided under this section, public service

performed by an annuitant described in subdivision 1, paragraph (a), subsequent to retirement

from the general employees retirement plan
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, the public employees police and fire retirement

plan,
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or the local government correctional employees retirement plan does not increase or

decrease the amount of an annuity. The annuitant shall not make any further contributions

to a defined benefit plan administered by the association by reason of this subsequent public

service.

Sec. 3.

Minnesota Statutes 2024, section 353.37, is amended by adding a subdivision to

read:

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Subd. 7.

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Not applicable to the public employees police and fire retirement plan.

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(a)

This section does not apply to the reemployment of a member of the public employees

police and fire retirement plan.

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(b) Section 353.653 applies to the reemployment of a member receiving an annuity or

who has applied to receive an annuity from the public employees police and fire retirement

plan and who returns to employment covered by the public employees police and fire

retirement plan or the general employees retirement plan.

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Sec. 4.

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[353.653] REEMPLOYMENT.

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Subdivision 1.

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Return to employment.

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(a) A member of the public employees police

and fire retirement plan who has separated from service and is receiving or has applied to

receive an annuity under section 353.651 may return to employment in a position covered

by the public employees police and fire retirement plan or the general employees retirement

plan as early as the 31st day after separation from service.

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(b) The executive director must seek repayment of any annuity payments made to a

member who returns to employment before the earliest day under paragraph (a). The

executive director may waive the repayment requirement if the member's failure to comply

with paragraph (a) was inadvertent or due to no fault of the member.

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Subd. 2.

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Effect on annuity.

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(a) A member's return to employment under subdivision 1

does not impact the member's continued receipt of an annuity or commencement of annuity

payments.

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(b) During the period of reemployment:

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(1) the amount of the annuity must not increase or decrease as a result of the

reemployment; and

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(2) neither the member nor the member's employer may make contributions as required

under section 353.65 during the period of reemployment.

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Sec. 5.
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EFFECTIVE DATE.
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Sections 1 to 4 are effective the day following final enactment.

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