Local government probation and telecommunicator retirement plan retirement references revised.

A bill for an act

relating to retirement; revising various retirement statutes to include references to

the local government probation and telecommunicator retirement plan; amending

Minnesota Statutes 2024, sections 353.01, subdivisions 16, 37; 353.0141,

subdivision 1; 353.031, subdivisions 1, 2, 3; 353.15, subdivision 1; 353.27,

subdivisions 4, 7b, 11, 12, 12a, 12b, 13, 14; 353.30, subdivision 3; 353.33,

subdivisions 3, 7a, 11; 353.34, subdivisions 1, 3; 353.37, subdivision 5; 353.46,

subdivision 2; 356.20, subdivision 2; 356.214, subdivision 1; 356.302, subdivisions

1, 7; 356.303, subdivision 4; 356.315, subdivision 9; 356.32, subdivision 2;

356.401, subdivision 3; 356.415, subdivision 2; 356.461, subdivision 2; 356.465,

subdivision 3; 356.47, subdivision 3; 356.48, subdivision 1; 356.611, subdivision

6; Minnesota Statutes 2025 Supplement, sections 353.01, subdivisions 2a, 2b;

356.215, subdivision 8.

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

Section 1.

Minnesota Statutes 2025 Supplement, section 353.01, subdivision 2a, is amended

to read:

Subd. 2a.

Included employees; mandatory membership.

(a) Any public employee

whose salary from one governmental subdivision is expected to exceed $425 in any month

and who is not specifically excluded under subdivision 2b or has not been provided an

option to participate under subdivision 2d, whether individually or by action of the

governmental subdivision, must participate beginning on the employee's first day of

employment as a member of the association with retirement coverage by the general

employees retirement plan under this chapter, the public employees police and fire plan

under this chapter,
deleted text begin
or
deleted text end
the local government correctional employees retirement plan under

chapter 353E,
new text begin
or the local government probation and telecommunicator retirement plan

under chapter 353H,
new text end
whichever applies. For any employee whose salary is not expected to

exceed $425 in any month, membership commences on the first day that the employee's

salary exceeds $425 and the other eligibility criteria are met. Public employees include but

are not limited to:

(1) persons whose salary meets the threshold in this paragraph from employment in one

or more positions within one governmental subdivision;

(2) elected county sheriffs;

(3) persons who are appointed, employed, or contracted to perform governmental

functions that by law or local ordinance are required of a public officer, including, but not

limited to:

(i) town and city clerk or treasurer;

(ii) county auditor, treasurer, or recorder;

(iii) city manager as defined in section
353.028
who does not exercise the option provided

under subdivision 2d; or

(iv) emergency management director, as provided under section
12.25
;

(4) physicians under section
353D.01, subdivision 2
, who do not elect public employees

defined contribution plan coverage under section
353D.02, subdivision 2
;

(5) full-time employees of the Dakota County Agricultural Society;

(6) employees of the Red Wing Port Authority who were first employed by the Red

Wing Port Authority before May 1, 2011, and who are not excluded employees under

subdivision 2b;

(7) employees of the Seaway Port Authority of Duluth who are not excluded employees

under subdivision 2b;

(8) employees of the Stevens County Housing and Redevelopment Authority who were

first employed by the Stevens County Housing and Redevelopment Authority before May

1, 2014, and who are not excluded employees under subdivision 2b;

(9) employees of the Minnesota River Area Agency on Aging who were first employed

by a Regional Development Commission before January 1, 2016, and who are not excluded

employees under subdivision 2b; and

(10) employees of the Public Employees Retirement Association.

(b) A public employee or elected official who was a member of the association on June

30, 2002, based on employment that qualified for membership coverage by the public

employees retirement plan or the public employees police and fire plan under this chapter,

or the local government correctional employees retirement plan under chapter 353E as of

June 30, 2002, retains that membership for the duration of the person's employment in that

position or incumbency in elected office. Except as provided in subdivision 28, the person

shall participate as a member until the employee or elected official terminates public

employment under subdivision 11a or terminates membership under subdivision 11b.

(c) If the salary of an included public employee is less than $425 in any subsequent

month, the member retains membership eligibility.

(d) For the purpose of participation in the general employees retirement plan, public

employees include employees who were members of the former Minneapolis Employees

Retirement Fund on June 29, 2010.

Sec. 2.

Minnesota Statutes 2025 Supplement, section 353.01, subdivision 2b, is amended

to read:

Subd. 2b.

Excluded employees.

(a) The following public employees are not eligible to

participate as members of the association with retirement coverage by the general employees

retirement plan, the local government correctional employees retirement plan under chapter

353E,
deleted text begin
or
deleted text end
the public employees police and fire plan
new text begin
, or the local government probation and

telecommunicator retirement plan under chapter 353H
new text end
:

(1) persons whose salary from one governmental subdivision never exceeds or is never

expected to exceed $425 in a month;

(2) public officers who are elected to a governing body, city mayors, or persons who

are appointed to fill a vacancy in an elected office of a governing body, whose term of office

commences on or after July 1, 2002, for the service to be rendered in that elected position;

(3) election judges and persons employed solely to administer elections;

(4) patient and inmate personnel who perform services for a governmental subdivision;

(5) except as otherwise specified in subdivision 12a, employees who are employed solely

in a temporary position as defined under subdivision 12a, and employees who resign from

a nontemporary position and accept a temporary position within 30 days of that resignation

in the same governmental subdivision;

(6) employees who are employed by reason of work emergency caused by fire, flood,

storm, or similar disaster, but if the person becomes a probationary or provisional employee

within the same pay period, other than on a temporary basis, the person is a "public

employee" retroactively to the beginning of the pay period;

(7) employees who by virtue of their employment in one governmental subdivision are

required by law to be a member of and to contribute to any of the plans or funds administered

by the Minnesota State Retirement System, the Teachers Retirement Association, or the St.

Paul Teachers Retirement Fund Association, but this exclusion must not be construed to

prevent a person from being a member of and contributing to the Public Employees

Retirement Association and also belonging to and contributing to another public pension

plan or fund for other service occurring during the same period of time, and a person who

meets the definition of "public employee" in subdivision 2 by virtue of other service occurring

during the same period of time becomes a member of the association unless contributions

are made to another public retirement plan on the salary based on the other service or to the

Teachers Retirement Association by a teacher as defined in section
354.05, subdivision 2
;

(8) persons who are members of a religious order and are excluded from coverage under

the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance

of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if

no irrevocable election of coverage has been made under section 3121(r) of the Internal

Revenue Code of 1954, as amended;

(9) persons who are:

(i) employed by a governmental subdivision who have not reached the age of 23 and

who are enrolled on a full-time basis to attend or are attending classes on a full-time basis

at an accredited school, college, or university in an undergraduate, graduate, or

professional-technical program, or at a public or charter high school;

(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist

interns and are serving in a degree or residency program in a public hospital or in a public

clinic; or

(iii) students who are serving for a period not to exceed five years in an internship or a

residency program that is sponsored by a governmental subdivision, including an accredited

educational institution;

(10) persons who hold a part-time adult supplementary technical college license who

render part-time teaching service in a technical college;

(11) for the first three years of employment, foreign citizens who are employed by a

governmental subdivision, except that the following foreign citizens must be considered

included employees under subdivision 2a:

(i) H-1B, H-1B1, and E-3 status holders;

(ii) employees of Hennepin County or Hennepin Healthcare System, Inc.;

(iii) employees legally authorized to work in the United States for three years or more;

and

(iv) employees otherwise required to participate under federal law;

(12) public hospital employees who elected not to participate as members of the

association before 1972 and who did not elect to participate from July 1, 1988, to October

1, 1988;

(13) volunteer ambulance service personnel, as defined in subdivision 35, but persons

who serve as volunteer ambulance service personnel may still qualify as public employees

under subdivision 2 and may be members of the Public Employees Retirement Association

and participants in the general employees retirement plan or the public employees police

and fire plan, whichever applies, on the basis of compensation received from public

employment service other than service as volunteer ambulance service personnel;

(14) except as provided in section
353.87
, volunteer firefighters, as defined in subdivision

36, engaging in activities undertaken as part of volunteer firefighter duties, but a person

who is a volunteer firefighter may still qualify as a public employee under subdivision 2

and may be a member of the Public Employees Retirement Association and a participant

in the general employees retirement plan or the public employees police and fire plan,

whichever applies, on the basis of compensation received from public employment activities

other than those as a volunteer firefighter;

(15) employees in the building and construction trades, as follows:

(i) pipefitters and associated trades personnel employed by Independent School District

No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters

local 455 pension plan who were either first employed after May 1, 1997, or, if first employed

before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section

12;

(ii) electrical workers, plumbers, carpenters, and associated trades personnel employed

by Independent School District No. 625, St. Paul, or the city of St. Paul, with coverage

under a collective bargaining agreement by the electrical workers local 110 pension plan,

the plumbers local 34 pension plan, or the carpenters local 322 pension plan who were either

first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be

excluded under Laws 2000, chapter 461, article 7, section 5;

(iii) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters,

allied tradesworkers, and plasterers employed by the city of St. Paul or Independent School

District No. 625, St. Paul, with coverage under a collective bargaining agreement by the

bricklayers and allied craftworkers local 1 pension plan, the cement masons local 633

pension plan, the glaziers and glassworkers local 1324 pension plan, the painters and allied

trades local 61 pension plan, or the plasterers local 265 pension plan who were either first

employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded

under Laws 2001, First Special Session chapter 10, article 10, section 6;

(iv) plumbers employed by the Metropolitan Airports Commission, with coverage under

a collective bargaining agreement by the plumbers local 34 pension plan, who were either

first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be

excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;

(v) electrical workers or pipefitters employed by the Minneapolis Park and Recreation

Board, with coverage under a collective bargaining agreement by the electrical workers

local 292 pension plan or the pipefitters local 539 pension plan, who were first employed

before May 2, 2015, and elected to be excluded under Laws 2015, chapter 68, article 11,

section 5;

(vi) laborers and associated trades personnel employed by the city of St. Paul or

Independent School District No. 625, St. Paul, who are designated as temporary employees

with coverage under a collective bargaining agreement by a multiemployer plan as defined

in section
356.27, subdivision 1
, who were either first employed on or after June 1, 2018,

or if first employed before June 1, 2018, elected to be excluded under Laws 2018, chapter

211, article 16, section 13; and

(vii) employees who are trades employees as defined in section
356.27, subdivision 1
,

first hired on or after July 1, 2020, by the city of St. Paul or Independent School District

No. 625, St. Paul, except for any trades employee for whom contributions are made under

section
356.24, subdivision 1
, clause (8), (9), or (10), by either employer to a multiemployer

plan as defined in section
356.27, subdivision 1
;

(16) employees who are hired after June 30, 2002, solely to fill seasonal positions under

subdivision 12b which are limited in duration by the employer to a period of six months or

less in each year of employment with the governmental subdivision;

(17) persons who are provided supported employment or work-study positions by a

governmental subdivision and who participate in an employment or industries program

maintained for the benefit of these persons where the governmental subdivision limits the

position's duration to up to five years, including persons participating in a federal or state

subsidized on-the-job training, work experience, senior citizen, youth, or unemployment

relief program where the training or work experience is not provided as a part of, or for,

future permanent public employment;

(18) independent contractors and the employees of independent contractors;

(19) reemployed annuitants of the association during the course of that reemployment;

(20) persons appointed to serve on a board or commission of a governmental subdivision

or an instrumentality thereof;

(21) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan

Transit Commission who are members of the International Brotherhood of Teamsters Local

638 and who are, by virtue of that employment, members of the International Brotherhood

of Teamsters Central States pension plan; and

(22) persons employed by the Duluth Transit Authority or any subdivision thereof who

are members of the Teamsters General Local Union 346 and who are, by virtue of that

employment, members of the Central States Southeast and Southwest Areas Pension Fund.

(b) Any person performing the duties of a public officer in a position defined in

subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an

employee of an independent contractor.

Sec. 3.

Minnesota Statutes 2024, section 353.01, subdivision 16, is amended to read:

Subd. 16.

Allowable service; limits and computation.

(a) "Allowable service" means:

(1) service during years of actual membership in the course of which employee deductions

were withheld from salary and contributions were made at the applicable rates under section

353.27
,
353.65
,
deleted text begin
or
deleted text end

353E.03
new text begin
, or 353H.04
new text end
;

(2) periods of service covered by payments in lieu of salary deductions under sections

353.27
, subdivisions 12 and 12a, and
353.35
;

(3) service in years during which the public employee was not a member but for which

the member later elected, while a member, to obtain credit by making payments to the fund

as permitted by any law then in effect;

(4) a period of authorized leave of absence during which the employee receives pay as

specified in subdivision 10, paragraph (a), clause (4) or (5), from which deductions for

employee contributions are made, deposited, and credited to the fund;

(5) a period of authorized leave of absence without pay, or with pay that is not included

in the definition of salary under subdivision 10, paragraph (a), clause (4) or (5), for which

salary deductions are not authorized, and for which a member obtained service credit for

up to 12 months of the authorized leave period by payment under section
353.0162
, to the

fund made in place of salary deductions;

(6) an authorized temporary or seasonal layoff under subdivision 12, limited to three

months allowable service per authorized temporary or seasonal layoff in one calendar year.

An employee who has received the maximum service credit allowed for an authorized

temporary or seasonal layoff must return to public service and must obtain a minimum of

three months of allowable service subsequent to the layoff in order to receive allowable

service for a subsequent authorized temporary or seasonal layoff;

(7) a period of uniformed services leave purchased under section
353.014
;

(8) a period of military service purchased under section
353.0141
; or

(9) a period of reduced salary purchased under section
353.0162
.

(b) No member may receive more than 12 months of allowable service credit in a year

either for vesting purposes or for benefit calculation purposes.

(c) For an active member who was an active member of the former Minneapolis

Firefighters Relief Association on December 29, 2011, "allowable service" is the period of

service credited by the Minneapolis Firefighters Relief Association as reflected in the

transferred records of the association up to December 30, 2011, and the period of service

credited under paragraph (a), clause (1), after December 30, 2011. For an active member

who was an active member of the former Minneapolis Police Relief Association on December

29, 2011, "allowable service" is the period of service credited by the Minneapolis Police

Relief Association as reflected in the transferred records of the association up to December

30, 2011, and the period of service credited under paragraph (a), clause (1), after December

30, 2011.

Sec. 4.

Minnesota Statutes 2024, section 353.01, subdivision 37, is amended to read:

Subd. 37.

Normal retirement age.

(a) "Normal retirement age" means age 65 for a

person who first became a public employee or a member of a pension fund listed in section

356.30, subdivision 3
, clause (6), before July 1, 1989. For a person who first becomes a

public employee after June 30, 1989, "normal retirement age" means the higher of age 65

or "retirement age," as defined in United States Code, title 42, section 416(l), as amended,

but not to exceed age 66.

(b) "Normal retirement age" means age 55 for a person who is a member of a pension

fund listed in section
356.30, subdivision 3
, clauses (7) and (8).

new text begin

(c) "Normal retirement age" means the age stated in section 353H.01, subdivision 6, for

a member of the local government probation and telecommunicator retirement plan.

new text end

Sec. 5.

Minnesota Statutes 2024, section 353.0141, subdivision 1, is amended to read:

Subdivision 1.

Service credit purchase authorized.

(a) Unless prohibited under

paragraph (b), a member is eligible to purchase allowable service credit, not to exceed five

cumulative years of allowable service credit, for one or more periods of service in the

uniformed services, as defined in United States Code, title 38, section 4303(13), if:

(1) the member has at least three years of allowable service credit with the general

employees retirement plan, the local government correctional employees retirement plan

under chapter 353E,
deleted text begin
or
deleted text end
the public employees police and fire retirement plan
new text begin
, or the local

government probation and telecommunicator retirement plan under chapter 353H
new text end
;

(2) the member's current period of employment is at least six months; and

(3) one of the following applies:

(i) the member's service in the uniformed services occurred before becoming a public

employee as defined in section
353.01, subdivision 2
; or

(ii) the member failed to obtain service credit for a uniformed services leave of absence

under section
353.01, subdivision 16
, paragraph (a), clause (8).

(b) A service credit purchase is prohibited if:

(1) the member separated from service in the uniformed services with a dishonorable

or bad conduct discharge or under other than honorable conditions; or

(2) the member has purchased or otherwise received service credit from any Minnesota

public employee pension plan for the same period of service in the uniformed services.

(c) When purchasing a period of service, if the period of service in the uniformed services

is one year or less, then the member must purchase the full period of service. If the period

of service in the uniformed services is longer than one year, the member may purchase the

full period, not to exceed five cumulative years, or may purchase a portion of the period of

service. If a member wishes to purchase a portion of the period of service, the portion must:

(1) not be less than one year; and

(2) be in increments of six months of service.

Sec. 6.

Minnesota Statutes 2024, section 353.031, subdivision 1, is amended to read:

Subdivision 1.

Application.

(a) This section applies to all disability determinations for

the public employees general fund, the public employees police and fire fund,
deleted text begin
and
deleted text end
the local

government correctional service retirement plan
new text begin
, and the local government probation and

telecommunicator retirement plan,
new text end
and any other disability determination subject to approval

by the board, except as otherwise specified in section
353.032, 353.33
,
353.656
, or
353E.05
.

These requirements and the requirements of section
353.03, subdivision 3
, are in addition

to the specific requirements of each plan and govern in the event there is any conflict between

these sections and the procedures specific to any of those plans under section
353.33
,

353.656
,
deleted text begin
or
deleted text end

353E.06
new text begin
, or 353H.06
new text end
.

(b) Notwithstanding any law to the contrary, an employee, as defined in section
353.032
,

subdivision 1, clause (2), who applies for a duty disability benefit based on a psychological

condition, as defined in section
353.032, subdivision 1
, clause (7), is not eligible for duty

disability benefits under this chapter until the employee has satisfied the additional procedure,

including all completion of treatment requirements under section
353.032
.

Sec. 7.

Minnesota Statutes 2024, section 353.031, subdivision 2, is amended to read:

Subd. 2.

Plan document policy statement.

Disability determinations for the public

employees general fund
new text begin
and the local government probation and telecommunicator retirement

plan
new text end
must be made subject to section
353.01, subdivision 19
; and for the police and fire

plan and the local government correctional service retirement plan must be made consistent

with the legislative policy and intent set forth in section
353.63
.

Sec. 8.

Minnesota Statutes 2024, section 353.031, subdivision 3, is amended to read:

Subd. 3.

Procedure to determine eligibility; generally.

(a) Every claim for a disability

benefit must be initiated in writing on an application form and in the manner prescribed by

the executive director and filed with the executive director. To be valid, an application for

disability benefits must be made within 18 months following termination of public service

as defined under section
353.01, subdivision 11a
, and include the required application form

and the medical reports required by paragraph (c).

(b) All medical reports must support a finding that the disability arose before the employee

was placed on any paid or unpaid leave of absence or terminated public service, as defined

under section 353.01, subdivision 11a.

(c) An applicant for disability shall provide a detailed report signed by a licensed medical

doctor and at least one additional report signed by a medical doctor, psychiatrist, psychologist,

APRN, or chiropractor. The applicant must authorize the release of all medical and health

care evidence, including all medical records and relevant information from any source, to

support the application for initial, or the continuing payment of, disability benefits.

(d) All reports must contain an opinion regarding the applicant's prognosis, the duration

of the disability, and the expectations for improvement. Any report that does not contain

and support a finding that the disability will last for at least one year may not be relied upon

to support eligibility for benefits.

(e) Where the medical evidence supports the expectation that at some point in time the

applicant will no longer be disabled, any decision granting disability may provide for a

termination date upon which disability can be expected to no longer exist. In the event a

termination date is made part of the decision granting benefits, prior to the actual termination

of benefits, the applicant shall have the opportunity to show that the disabling condition for

which benefits were initially granted continues. In the event the benefits terminate in

accordance with the original decision, the applicant may petition for review under section

356.96
or may reapply for disability in accordance with these procedures and section
353.33
,

353.656
, or
353E.06
, as applicable.

(f) Upon receipt of a valid application, the executive director must notify the employer.

No later than 30 days after receiving the notification, the employer must provide a report

to the executive director indicating that there is no available work that the applicant can

perform in the applicant's disabled condition and that all reasonable accommodations have

been considered. Upon request of the executive director, an employer shall provide evidence

of the steps the employer has taken to attempt to provide reasonable accommodations and

continued employment to the applicant. The employer shall also provide a certification of

the applicant's past public service; the dates of any paid sick leave, vacation, or any other

employer-paid salary continuation plan beyond the last working day; and whether or not

any sick or annual leave has been allowed.

(g) An applicant who is placed on leave of absence without compensation because of a

disability is not barred from receiving a disability benefit.

(h) An applicant for disability benefits may file a retirement annuity application under

section
353.29, subdivision 4
, simultaneously with an application for disability benefits. If

the application for disability benefits is approved, the retirement annuity application is

canceled. If disability benefits are denied, the retirement annuity application must be

processed upon the request of the applicant. No member of the general employees retirement

plan, the police and fire plan,
deleted text begin
or
deleted text end
the local government correctional service retirement plan
new text begin
,

or the local government probation and telecommunicator retirement plan
new text end
may receive a

disability benefit and a retirement annuity simultaneously from the same plan.

Sec. 9.

Minnesota Statutes 2024, section 353.15, subdivision 1, is amended to read:

Subdivision 1.

Exemption.

The provisions of section
356.401
apply to the general

employees retirement plan,
deleted text begin
to
deleted text end
the public employees police and fire retirement plan,
deleted text begin
and to
deleted text end

the local government correctional service retirement plan
new text begin
, and the local government probation

and telecommunicator retirement plan
new text end
.

Sec. 10.

Minnesota Statutes 2024, section 353.27, subdivision 4, is amended to read:

Subd. 4.

Employer reporting requirements; contributions; member status.

(a) A

representative authorized by the head of each department must deduct employee contributions

from the salary of each public employee who qualifies for membership in the general

employees retirement plan or the public employees police and fire retirement plan under

this chapter, the public employees defined contribution plan under chapter 353D,
deleted text begin
or
deleted text end
the

local government correctional service retirement plan under chapter 353E
new text begin
, or the local

government probation and telecommunicator retirement plan under chapter 353H
new text end
at the rate

under section
353.27
,
353.65
,
353D.03
,
deleted text begin
or
deleted text end

353E.03
,
new text begin
or 353H.04,
new text end
whichever is applicable,

that is in effect on the date the salary is paid. The employer representative must also remit

payment in a manner prescribed by the executive director for the aggregate amount of the

employee contributions and the required employer contributions to be received by the

association within 14 calendar days after each pay date. If the payment is less than the

amount required, the employer must pay the shortage amount to the association and collect

reimbursement of any employee contribution shortage paid on behalf of a member through

subsequent payroll withholdings from the wages of the employee. Payment of shortages in

employee contributions and associated employer contributions, if applicable, must include

interest at the rate specified in section
353.28, subdivision 5
, if not received within 30 days

following the date the amount was initially due under this section.

(b) The head of each department or the person's designee shall submit for each pay period

to the association a salary deduction report in the format prescribed by the executive director.

The report must be received by the association within 14 calendar days after each pay date

or the employer may be assessed a fine of $5 per calendar day until the association receives

the required data. Data required as part of salary deduction reporting must include, but are

not limited to:

(1) the legal names and Social Security numbers of employees who are members;

(2) the amount of each employee's salary deduction;

(3) the amount of salary defined in section
353.01, subdivision 10
, earned in the pay

period from which each deduction was made, including a breakdown of the portion of the

salary that represents overtime pay that the employee was paid for additional hours worked

beyond the regularly scheduled hours, pay for unused compensatory time, and the salary

amount earned by a reemployed annuitant under section
353.37, subdivision 1
, or
353.371,

subdivision 1
, or by a disabled member under section
353.33, subdivision 7
or 7a;

(4) the beginning and ending dates of the payroll period covered and the date of actual

payment; and

(5) adjustments or corrections covering past pay periods as authorized by the executive

director.

(c) Employers must furnish the data required for enrollment for each new or reinstated

employee who qualifies for membership in the general employees retirement plan, the public

employees police and fire retirement plan, the public employees defined contribution plan,
deleted text begin

or
deleted text end
the local government correctional service retirement plan
new text begin
, or the local government

probation and telecommunicator retirement plan
new text end
in the format prescribed by the executive

director. The required enrollment data on new members must be submitted to the association

prior to or concurrent with the submission of the initial employee salary deduction. Also,

the employer shall report to the association all member employment status changes, such

as leaves of absence, terminations, and death, and shall report the effective dates of those

changes, on an ongoing basis for the payroll cycle in which they occur. If an employer fails

to comply with the reporting requirements under this paragraph, the executive director may

assess a fine of $25 for each failure if the association staff has notified the employer of the

noncompliance and attempted to obtain the missing data or form from the employer for a

period of more than three months.

(d) The employer shall furnish data, forms, and reports as may be required by the

executive director for proper administration of the retirement system. Before implementing

new or different computerized reporting requirements, the executive director shall give

appropriate advance notice to governmental subdivisions to allow time for system

modifications.

(e) Notwithstanding paragraph (a), the executive director may provide for less frequent

reporting and payments for small employers.

(f) The executive director may establish reporting procedures and methods as required

to review compliance by employers with the salary and contribution reporting requirements

in this chapter. A review of the payroll records of a participating employer may be conducted

by the association on a periodic basis or as a result of concerns known to exist within a

governmental subdivision. An employer under review must extract requested data and

provide records to the association after receiving reasonable advanced notice. Failure to

provide requested information or materials will result in the employer being liable to the

association for any expenses associated with a field audit, which may include staff salaries,

administrative expenses, and travel expenses.

Sec. 11.

Minnesota Statutes 2024, section 353.27, subdivision 7b, is amended to read:

Subd. 7b.

Recovery of overpayments.

(a) In the event the executive director determines

that an overpaid annuity or benefit from the general employees retirement plan of the Public

Employees Retirement Association, the public employees police and fire retirement plan,
deleted text begin

or
deleted text end
the local government correctional employees retirement plan
new text begin
, or the local government

probation and telecommunicator retirement plan
new text end
is the result of invalid salary included in

the average salary used to calculate the payment amount must be recovered, the association

must determine the amount of the employee deductions taken in error on the invalid salary,

with interest determined in the manner provided for a former member under subdivision 7,

paragraph (e), clause (2), item (i), and must subtract that amount from the total annuity or

benefit overpayment, and the remaining balance of the overpaid annuity or benefit, if any,

must be recovered.

(b) If the invalid employee deductions plus interest exceed the amount of the overpaid

benefits, the balance must be refunded to the person to whom the benefit or annuity is being

paid.

(c) Any invalid employer contributions reported on the invalid salary must be credited

to the employer as provided in subdivision 7, paragraph (e).

(d) If a member or former member, who is receiving a retirement annuity or disability

benefit for which an overpayment is being recovered, dies before recovery of the overpayment

is completed and a joint and survivor optional annuity is payable, the remaining balance of

the overpaid annuity or benefit must continue to be recovered from the payment to the

optional annuity beneficiary.

(e) If the association finds that a refund has been overpaid to a former member,

beneficiary or other person, the amount of the overpayment must be recovered for the benefit

of the respective retirement fund or account.

(f) The board of trustees shall adopt policies directing the period of time and manner

for the collection of any overpaid retirement or optional annuity, and survivor or disability

benefit, or a refund that the executive director determines must be recovered as provided

under this section.

Sec. 12.

Minnesota Statutes 2024, section 353.27, subdivision 11, is amended to read:

Subd. 11.

Employers; required to furnish requested information.

(a) All governmental

subdivisions shall furnish promptly such other information relative to the employment status

of all employees or former employees, including, but not limited to, payroll abstracts

pertaining to all past and present employees, as may be requested by the executive director,

including schedules of salaries applicable to various categories of employment.

(b) In the event payroll abstract records have been lost or destroyed, for whatever reason

or in whatever manner, so that such schedules of salaries cannot be furnished therefrom,

the employing governmental subdivision, in lieu thereof, shall furnish to the association an

estimate of the earnings of any employee or former employee for any period as may be

requested by the executive director. If the association is provided a schedule of estimated

earnings, the executive director is authorized to use the same as a basis for making whatever

computations might be necessary for determining obligations of the employee and employer

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

plan,
deleted text begin
or
deleted text end
the local government correctional employees retirement plan
new text begin
, or the local government

probation and telecommunicator retirement plan
new text end
. If estimates are not furnished by the

employer at the request of the executive director, the executive director may estimate the

obligations of the employee and employer to the general employees retirement fund, the

public employees police and fire retirement plan,
deleted text begin
or
deleted text end
the local government correctional

employees retirement plan
new text begin
, or the local government probation and telecommunicator

retirement plan
new text end
based upon those records that are in its possession.

Sec. 13.

Minnesota Statutes 2024, section 353.27, subdivision 12, is amended to read:

Subd. 12.

Omitted salary deductions; obligations.

(a) In the case of omission of

required deductions for the general employees retirement plan, the public employees police

and fire retirement plan,
deleted text begin
or
deleted text end
the local government correctional employees retirement plan
new text begin
,

or the local government probation and telecommunicator retirement plan
new text end
from the salary

of an employee, the department head or designee shall immediately, upon discovery, report

the employee for membership and deduct the employee deductions under subdivision 4

during the current pay period or during the pay period immediately following the discovery

of the omission. Payment for the omitted obligations may only be made in accordance with

reporting procedures and methods established by the executive director.

(b) When the entire omission period of an employee does not exceed 60 days, the

governmental subdivision may report and submit payment of the omitted employee

deductions and the omitted employer contributions through the reporting processes under

subdivision 4.

(c) When the omission period of an employee exceeds 60 days, the governmental

subdivision shall furnish to the association sufficient data and documentation upon which

the obligation for omitted employee and employer contributions can be calculated. The

omitted employee deductions must be deducted from the employee's subsequent salary

payment or payments and remitted to the association for deposit in the applicable retirement

fund. The employee shall pay omitted employee deductions due for the 60 days prior to the

end of the last pay period in the omission period during which salary was earned. The

employer shall pay any remaining omitted employee deductions and any omitted employer

contributions, plus interest at the applicable rate or rates specified in section
356.59,

subdivision 3
, compounded annually, from the date or dates each omitted employee

contribution was first payable.

(d) An employer shall not hold an employee liable for omitted employee deductions

beyond the pay period dates under paragraph (c), nor attempt to recover from the employee

those employee deductions paid by the employer on behalf of the employee. Omitted

deductions due under paragraph (c) which are not paid by the employee constitute a liability

of the employer that failed to deduct the omitted deductions from the employee's salary.

The employer shall make payment with interest at the applicable rate or rates specified in

section
356.59, subdivision 3
, compounded annually. Omitted employee deductions are no

longer due if an employee terminates public service before making payment of omitted

employee deductions to the association, but the employer remains liable to pay omitted

employer contributions plus interest at the applicable rate or rates specified in section
356.59,

subdivision 3
, compounded annually, from the date the contributions were first payable.

(e) The association may not commence action for the recovery of omitted employee

deductions and employer contributions after the expiration of three calendar years after the

calendar year in which the contributions and deductions were omitted. Except as provided

under paragraph (b), no payment may be made or accepted unless the association has already

commenced action for recovery of omitted deductions. An action for recovery commences

on the date of the mailing of any written correspondence from the association requesting

information from the governmental subdivision upon which to determine whether or not

omitted deductions occurred.

Sec. 14.

Minnesota Statutes 2024, section 353.27, subdivision 12a, is amended to read:

Subd. 12a.

Terminated employees: omitted deductions.

A terminated employee who

was a member of the general employees retirement plan of the Public Employees Retirement

Association, the public employees police and fire retirement plan,
deleted text begin
or
deleted text end
the local government

correctional employees retirement plan
new text begin
, or the local government probation and

telecommunicator retirement plan
new text end
and who has a period of employment in which previously

omitted employer contributions were made under subdivision 12 but for whom no, or only

partial, omitted employee contributions have been made, or a member who had prior coverage

in the association for which previously omitted employer contributions were made under

subdivision 12 but who terminated service before required omitted employee deductions

could be withheld from salary, may pay the omitted employee deductions for the period on

which omitted employer contributions were previously paid plus interest at the applicable

rate or rates specified in section
356.59, subdivision 3
, compounded annually. A terminated

employee may pay the omitted employee deductions plus interest within six months of an

initial notification from the association of eligibility to pay those omitted deductions. If a

terminated employee is reemployed in a position covered under a public pension fund under

section
356.30, subdivision 3
, and elects to pay omitted employee deductions, payment

must be made no later than six months after a subsequent termination of public service.

Sec. 15.

Minnesota Statutes 2024, section 353.27, subdivision 12b, is amended to read:

Subd. 12b.

Terminated employees: immediate eligibility.

If deductions were omitted

from salary adjustments or final salary of a terminated employee who was a member of the

general employees retirement plan, the public employees police and fire retirement plan,
deleted text begin

or
deleted text end
the local government correctional employees retirement plan
new text begin
, or the local government

probation and telecommunicator retirement plan
new text end
and who is immediately eligible to draw

a monthly benefit, the employer shall pay the omitted employer and employer additional

contributions plus interest on both the employer and employee amounts due at the applicable

rate or rates specified in section
356.59, subdivision 3
, compounded annually. The employee

shall pay the employee deductions within six months of an initial notification from the

association of eligibility to pay omitted deductions or the employee forfeits the right to

make the payment.

Sec. 16.

Minnesota Statutes 2024, section 353.27, subdivision 13, is amended to read:

Subd. 13.

Certain warrants canceled.

A warrant payable from the general employees

retirement fund, the public employees police and fire retirement fund,
deleted text begin
or
deleted text end
the local government

correctional retirement fund
new text begin
, or the local government probation and telecommunicator

retirement fund
new text end
remaining unpaid for a period of six months must be canceled into the

applicable retirement fund and not canceled into the state's general fund.

Sec. 17.

Minnesota Statutes 2024, section 353.27, subdivision 14, is amended to read:

Subd. 14.

Periods before initial coverage date.

(a) If an entity is determined to be a

governmental subdivision due to receipt of a written notice of eligibility from the association

with respect to the general employees retirement plan, the public employees police and fire

retirement plan,
deleted text begin
or
deleted text end
the local government correctional retirement plan
new text begin
, or the local government

probation and telecommunicator retirement plan
new text end
, that employer and its employees are subject

to the requirements of subdivision 12, effective retroactively to the date that the executive

director of the association determines that the entity first met the definition of a governmental

subdivision, if that date predates the notice of eligibility.

(b) If the retroactive time period under paragraph (a) exceeds three years, an employee

is authorized to purchase service credit in the applicable Public Employees Retirement

Association plan for the portion of the period in excess of three years, by making payment

under section
356.551
. Notwithstanding any provision of section
356.551, subdivision 2
,

to the contrary, regarding time limits on purchases, payment of a service credit purchase

amount may be made anytime before the termination of public service.

(c) This subdivision does not apply if the applicable employment under paragraph (a)

included coverage by any public or private defined benefit or defined contribution retirement

plan, other than a firefighters relief association. If this paragraph applies, an individual is

prohibited from purchasing service credit from a Public Employees Retirement Association

plan for any period or periods specified in paragraph (a).

Sec. 18.

Minnesota Statutes 2024, section 353.30, subdivision 3, is amended to read:

Subd. 3.

Optional retirement annuity forms.

(a) The board of trustees shall establish

optional annuities which shall take the form of a joint and survivor annuity. Except as

provided in subdivision 3a, the optional annuity forms shall be actuarially equivalent to the

forms provided in section
353.29
and subdivisions 1, 1a, 1b, 1c, and 5
new text begin
or section 353H.05,

subdivisions 1 and 3
new text end
. In establishing those optional forms, the board shall obtain the written

recommendation of the actuary retained under section
356.214
. The recommendations shall

be a part of the permanent records of the board. A member or former member may select

an optional form of annuity, subject to the provisions of section
356.46
, in lieu of accepting

any other form of annuity which might otherwise be available.

(b) For purposes of computing a joint and survivor annuity, the investment return

assumption specified in section
356.461
must be used rather than the investment return

specified in section
356.215, subdivision 8
.

Sec. 19.

Minnesota Statutes 2024, section 353.33, subdivision 3, is amended to read:

Subd. 3.

Computation of benefits.

(a) This disability benefit is an amount equal to the

normal annuity payable to a member who has reached normal retirement age with the same

number of years of allowable service and the same average salary, as provided in
deleted text begin
section
deleted text end
new text begin

sections
new text end

353.01, subdivision 17a
, and
deleted text begin
section
deleted text end

353.29, subdivision 3
new text begin
, or 353H.05, subdivision

1, for members of the local government probation and telecommunicator retirement plan
new text end
.

(b) A basic member shall receive a supplementary monthly benefit of $25 to age 65 or

the five-year anniversary of the effective date of the disability benefit, whichever is later.

(c) If the disability benefits under this subdivision exceed the average salary as defined

in section
353.01, subdivision 17a
, the disability benefits must be reduced to an amount

equal to the average salary.

Sec. 20.

Minnesota Statutes 2024, section 353.33, subdivision 7a, is amended to read:

Subd. 7a.

Trial work period.

(a) This subdivision applies only to the Public Employees

Retirement Association general employees retirement plan
new text begin
and local government probation

and telecommunicator retirement plan
new text end
.

(b) If, following a work or non-work-related injury or illness, a member receiving

disability benefits attempts to return to work for the member's previous public employer or

attempts to return to a similar position with another public employer, on a full-time or less

than full-time basis, the association must continue paying the disability benefit for a period

not to exceed six months. The disability benefit must continue in an amount that, when

added to the subsequent employment earnings, does not exceed the base monthly salary the

member had been receiving at the date of disability or the base monthly salary rate currently

paid for similar positions, whichever is higher.

(c) No deductions for the general employees retirement plan may be taken from the

salary of a disabled person who is attempting to return to work under this provision unless

the member waives further disability benefits.

(d) A member only may return to employment and continue disability benefit payments

once while receiving disability benefits from the general employees retirement plan.

Sec. 21.

Minnesota Statutes 2024, section 353.33, subdivision 11, is amended to read:

Subd. 11.

Coordinated member disabilitant transfer to retirement status.

The

disability benefits paid to a coordinated member must terminate when the person reaches

normal retirement age. If the coordinated member is still totally and permanently disabled

upon attaining normal retirement age, the coordinated member is deemed to be on retirement

status. If an optional annuity is elected under subdivision 3a, the coordinated member shall

receive an annuity under the terms of the optional annuity previously elected, or, if an

optional annuity is not elected under subdivision 3a, the coordinated member may elect to

receive a normal retirement annuity under section
353.29
new text begin
or 353H.05
new text end
or an annuity equal

to the disability benefit paid before the coordinated member reaches normal retirement age,

whichever amount is greater, or elect to receive an optional annuity under section
353.30,

subdivision 3
. The annuity of a disabled coordinated member who attains normal retirement

age must be computed under the law in effect upon attainment of normal retirement age.

Election of an optional annuity must be made before the coordinated member attains normal

retirement age. If an optional annuity is elected, the election is effective on the date on

which the person attains normal retirement age and the optional annuity begins to accrue

on the first day of the month next following the month in which the person attains that age.

Sec. 22.

Minnesota Statutes 2024, section 353.34, subdivision 1, is amended to read:

Subdivision 1.

Refund or deferred annuity.

(a) A former member is entitled to either

a refund of accumulated employee deductions under subdivision 2, or to a deferred annuity

under subdivision 3. Application for a refund may not be made before the date of termination

of public service. A refund must be paid within 120 days following receipt of the application

unless the applicant has again become a public employee required to be covered by the

association.

(b) If an individual was placed on layoff under section
353.01
, subdivision 12 or 12c, a

refund is not payable before termination of service under section
353.01, subdivision 11a
.

(c) An individual who terminates public service covered by the Public Employees

Retirement Association general employees retirement plan, except members of the former

Minneapolis Employees Retirement Fund under section
353.01
, subdivision 2b, paragraph

(d), the Public Employees Retirement Association police and fire retirement plan,
deleted text begin
or
deleted text end
the

public employees local government correctional service retirement plan
new text begin
, or the local

government probation and telecommunicator retirement plan
new text end
, and who is employed by a

different employer and who becomes an active member covered by one of the other two

plans, may receive a refund of employee contributions plus annual compound interest from

the plan from which the member terminated service at the applicable rate specified in

subdivision 2.

(d) Refunds payable to members of the former Minneapolis Employees Retirement Fund

under section
353.01, subdivision 2a
, paragraph (d), are governed by Minnesota Statutes

2008, chapter 422A.

Sec. 23.

Minnesota Statutes 2024, section 353.34, subdivision 3, is amended to read:

Subd. 3.

Deferred annuity; eligibility; computation.

(a) A member who is partially

or 100 percent vested under section
353.01, subdivision 47
,
new text begin
or 353H.01, subdivision 12,
new text end
when

termination of public service or termination of membership occurs has the option of leaving

the member's accumulated deductions in the fund and being entitled to a deferred retirement

annuity commencing at normal retirement age or to a deferred early retirement annuity

under section
353.30
, subdivision 1a, 1b, 1c, or 5
new text begin
, or 353H.05, subdivision 3
new text end
.

(b) The deferred annuity must be computed under section
353.29, subdivision 3
,
new text begin
or

353H.05, subdivision 1,
new text end
on the basis of the law in effect on the date of termination of public

service or termination of membership, whichever is later, and, if the later of termination of

public service or termination of membership is on or before December 31, 2011, the deferred

annuity must be augmented as provided in paragraphs (c) to (e).

(c) The deferred annuity of any former member must be augmented from the first day

of the month following the termination of active service, or July 1, 1971, whichever is later,

to the effective date of retirement or, if earlier, December 31, 2018.

(d) For a person who became a public employee before July 1, 2006, and who has a

termination of public service before January 1, 2012, the deferred annuity must be augmented

at the following rate or rates, compounded annually:

(1) five percent until January 1, 1981;

(2) three percent from January 1, 1981, until January 1 of the year following the year in

which the former member attains age 55 or December 31, 2011, whichever is earlier;

(3) five percent from January 1 of the year following the year in which the former member

attains age 55, or December 31, 2011, whichever is earlier;

(4) one percent from January 1, 2012, until December 31, 2018; and

(5) after December 31, 2018, the deferred annuity must not be augmented.

(e) For a person who became a public employee after June 30, 2006, and who has a

termination of public service before January 1, 2012, the deferred annuity must be augmented

at the following rate or rates, compounded annually:

(1) 2.5 percent until December 31, 2011;

(2) one percent from January 1, 2012, until December 31, 2018; and

(3) after December 31, 2018, the deferred annuity must not be augmented.

(f) For a person who has a termination of public service after December 31, 2011, the

deferred annuity must not be augmented.

(g) The retirement annuity or disability benefit of, or the survivor benefit payable on

behalf of, a former member who terminated service before July 1, 1997, or the survivor

benefit payable on behalf of a basic or police and fire member who was receiving disability

benefits before July 1, 1997, which is first payable after June 30, 1997, must be increased

on an actuarial equivalent basis to reflect the change in the investment return actuarial

assumption under section
356.215, subdivision 8
, from five percent to six percent under a

calculation procedure and tables adopted by the board and approved by the actuary retained

under section
356.214
.

(h) A former member qualified to apply for a deferred retirement annuity may revoke

this option at any time before the commencement of deferred annuity payments by making

application for a refund. The person is entitled to a refund of accumulated member

contributions within 30 days following date of receipt of the application by the executive

director.

Sec. 24.

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, the public employees police and fire retirement

plan,
deleted text begin
or
deleted text end
the local government correctional employees retirement plan
new text begin
, or the local government

probation and telecommunicator retirement plan
new text end
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. 25.

Minnesota Statutes 2024, section 353.46, subdivision 2, is amended to read:

Subd. 2.

Rights of deferred annuitant.

(a) The entitlement of a deferred annuitant or

other former member of the general employees retirement plan of the Public Employees

Retirement Association, the public employees police and fire retirement plan,
deleted text begin
or
deleted text end
the local

government correctional employees retirement plan
new text begin
, or the local government probation and

telecommunicator retirement plan
new text end
to receive an annuity under the law in effect at the time

the person terminated public service is preserved.

(b) The entitlement of a deferred annuitant or former member of the Minneapolis

Employees Retirement Fund, upon merger with the general employees retirement plan of

the Public Employees Retirement Association, continues under the provisions of Minnesota

Statutes 2008, section
422A.16
.

Sec. 26.

Minnesota Statutes 2024, section 356.20, subdivision 2, is amended to read:

Subd. 2.

Covered public pension plans and funds.

This section applies to the following

public pension plans:

(1) the general state employees retirement plan of the Minnesota State Retirement System;

(2) the general employees retirement plan of the Public Employees Retirement

Association;

(3) the Teachers Retirement Association;

(4) the State Patrol retirement plan;

(5) the St. Paul Teachers Retirement Fund Association;

(6) the University of Minnesota faculty retirement plan;

(7) the University of Minnesota faculty supplemental retirement plan;

(8) the judges retirement fund;

(9) the Bloomington Fire Department Relief Association;

(10) a firefighters relief association governed by section
424A.091
;

(11) the public employees police and fire plan of the Public Employees Retirement

Association;

(12) the correctional state employees retirement plan of the Minnesota State Retirement

System;

(13) the local government correctional service retirement plan of the Public Employees

Retirement Association;
deleted text begin
and
deleted text end

(14) the statewide volunteer firefighter plan
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(15) the local government probation and telecommunicator retirement plan of the Public

Employees Retirement Association.

new text end

Sec. 27.

Minnesota Statutes 2024, section 356.214, subdivision 1, is amended to read:

Subdivision 1.

Actuary retention.

(a) The governing board or managing or administrative

official of each public pension plan and retirement fund or plan enumerated in paragraph

(b) shall contract with an established actuarial consulting firm to conduct annual actuarial

valuations and related services. The principal from the actuarial consulting firm on the

contract must be an approved actuary under section
356.215, subdivision 1
, paragraph (c).

(b) Actuarial services must include the preparation of actuarial valuations and related

actuarial work for the following retirement plans:

(1) the teachers retirement plan, Teachers Retirement Association;

(2) the general state employees retirement plan, Minnesota State Retirement System;

(3) the correctional employees retirement plan, Minnesota State Retirement System;

(4) the State Patrol retirement plan, Minnesota State Retirement System;

(5) the judges retirement plan, Minnesota State Retirement System;

(6) the general employees retirement plan, Public Employees Retirement Association;

(7) the public employees police and fire plan, Public Employees Retirement Association;

(8) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund Association;

(9) the legislators retirement plan, Minnesota State Retirement System;
deleted text begin
and
deleted text end

(10) the local government correctional service retirement plan, Public Employees

Retirement Association
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(11) the local government probation and telecommunicator retirement plan, Public

Employees Retirement Association.

new text end

(c) The actuarial valuation for the legislators retirement plan must include a separate

calculation of total plan actuarial accrued liabilities due to constitutional officer coverage

under section
3A.17
.

(d) The contracts must require completion of the annual actuarial valuation calculations

on a fiscal year basis, with the contents of the actuarial valuation calculations as specified

in section
356.215
, and in conformity with the standards for actuarial work adopted by the

Legislative Commission on Pensions and Retirement.

The contracts must require completion of annual experience data collection and processing

and a quadrennial published experience study for the plans listed in paragraph (b), clauses

(1), (2), and (6), as provided for in the standards for actuarial work adopted by the

commission. The experience data collection, processing, and analysis must evaluate the

following:

(1) individual salary progression;

(2) the rate of return on investments based on the current asset value;

(3) payroll growth;

(4) mortality;

(5) retirement age;

(6) withdrawal; and

(7) disablement.

(e) The actuary shall annually prepare a report to the governing or managing board or

administrative official and the legislature, summarizing the results of the actuarial valuation

calculations. The actuary shall include with the report any recommendations concerning

the appropriateness of the support rates to achieve proper funding of the retirement plans

by the required funding dates. The actuary shall, as part of the quadrennial experience study,

include recommendations on the appropriateness of the actuarial valuation assumptions

required for evaluation in the study.

(f) If the actuarial gain and loss analysis in the actuarial valuation calculations indicates

a persistent pattern of sizable gains or losses, the governing or managing board or

administrative official shall direct the actuary to prepare a special experience study for a

plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), or (10), in the manner provided

for in the standards for actuarial work adopted by the commission.

Sec. 28.

Minnesota Statutes 2025 Supplement, section 356.215, subdivision 8, is amended

to read:

Subd. 8.

Actuarial assumptions.

(a) The actuarial valuation must use the applicable

following investment return assumption:

plan

investment return
assumption

general state employees retirement plan

7%

correctional state employees retirement plan

7

State Patrol retirement plan

7

legislators retirement plan, and for the

constitutional officers calculation of total plan

liabilities

0

judges retirement plan

7

general public employees retirement plan

7

public employees police and fire retirement plan

7

local government correctional service retirement

plan

7

new text begin

local government probation and telecommunicator

retirement plan

new text end

new text begin

7

new text end

teachers retirement plan

7

St. Paul teachers retirement plan

7

Bloomington Fire Department Relief Association

6

local monthly benefit volunteer firefighter relief

associations

5

monthly benefit retirement plans in the statewide

volunteer firefighter retirement plan

6

(b) The actuarial valuation for each of the covered retirement plans listed in section

356.415, subdivision 2
, and the St. Paul Teachers Retirement Fund Association must take

into account the postretirement adjustment rate or rates applicable to the plan as specified

in section
354A.29, subdivision 7
, or
356.415
, whichever applies.

(c) The actuarial valuation must use the applicable salary increase and payroll growth

assumptions found in the appendix to the standards for actuarial work. The appendix must

be updated whenever new assumptions have been approved or deemed approved under

subdivision 18.

(d) The assumptions set forth in the appendix to the standards for actuarial work continue

to apply, unless a different salary assumption or a different payroll increase assumption:

(1) has been proposed by the governing board of the applicable retirement plan;

(2) is accompanied by the concurring recommendation of the actuary retained under

section
356.214, subdivision 1
, if applicable, or by the approved actuary preparing the most

recent actuarial valuation report if section
356.214
does not apply; and

(3) has been approved or deemed approved under subdivision 18.

Sec. 29.

Minnesota Statutes 2024, section 356.302, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) The terms used in this section are defined in this

subdivision.

(b) "Average salary" means the highest average of covered salary for the appropriate

period of credited service that is required for the calculation of a disability benefit by the

covered retirement plan and that is drawn from any period of credited service and successive

years of covered salary in a covered retirement plan.

(c) "Covered retirement plan" or "plan" means a retirement plan listed in subdivision 7.

(d) "Duty-related" means a disabling illness or injury that occurred while the person was

actively engaged in employment duties or that arose out of the person's active employment

duties.

(e) "General employee retirement plan" means a covered retirement plan listed in

subdivision 7, clauses (1) to
deleted text begin
(6) and (11)
deleted text end
new text begin
(5), (10), and (11)
new text end
.

(f) "Occupationally disabled" means the condition of having a medically determinable

physical or mental impairment that makes a person unable to satisfactorily perform the

minimum requirements of the person's employment position or a substantially similar

employment position.

(g) "Public safety employee retirement plan" means a covered retirement plan listed in

subdivision 7, clauses
deleted text begin
(7)
deleted text end
new text begin
(6)
new text end
to
deleted text begin
(10)
deleted text end
new text begin
(9)
new text end
.

(h) "Totally and permanently disabled" means the condition of having a medically

determinable physical or mental impairment that makes a person unable to engage in any

substantial gainful activity and that is expected to continue or has continued for a period of

at least one year or that is expected to result directly in the person's death.

Sec. 30.

Minnesota Statutes 2024, section 356.302, subdivision 7, is amended to read:

Subd. 7.

Covered retirement plans.

This section applies to the following retirement

plans:

(1) the general state employees retirement plan of the Minnesota State Retirement System,

established by chapter 352;

(2) the unclassified state employees retirement program of the Minnesota State Retirement

System, established by chapter 352D;

(3) the general employees retirement plan of the Public Employees Retirement

Association, established by chapter 353;

(4) the Teachers Retirement Association, established by chapter 354;

(5) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;

(6) the state correctional employees retirement plan of the Minnesota State Retirement

System, established by chapter 352;

(7) the State Patrol retirement plan, established by chapter 352B;

(8) the public employees police and fire plan of the Public Employees Retirement

Association, established by chapter 353;

(9) the local government correctional service retirement plan of the Public Employees

Retirement Association, established by chapter 353E;
deleted text begin
and
deleted text end

(10) the judges retirement plan, established by chapter 490
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(11) the local government probation and telecommunicator retirement plan of the Public

Employees Retirement Association, established by chapter 353H.

new text end

Sec. 31.

Minnesota Statutes 2024, section 356.303, subdivision 4, is amended to read:

Subd. 4.

Covered retirement plans.

This section applies to the following retirement

plans:

(1) the legislators retirement plan, established by chapter 3A;

(2) the general state employees retirement plan of the Minnesota State Retirement System,

established by chapter 352;

(3) the correctional state employees retirement plan of the Minnesota State Retirement

System, established by chapter 352;

(4) the State Patrol retirement plan, established by chapter 352B;

(5) the elective state officers retirement plan, established by chapter 352C;

(6) the unclassified state employees retirement program, established by chapter 352D;

(7) the general employees retirement plan of the Public Employees Retirement

Association, established by chapter 353;

(8) the public employees police and fire plan of the Public Employees Retirement

Association, established by chapter 353;

(9) the local government correctional service retirement plan of the Public Employees

Retirement Association, established by chapter 353E;

(10) the Teachers Retirement Association, established by chapter 354;

(11) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;
deleted text begin

and
deleted text end

(12) the judges retirement fund, established by chapter 490
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(13) the local government probation and telecommunicator retirement plan of the Public

Employees Retirement Association, established by chapter 353H.

new text end

Sec. 32.

Minnesota Statutes 2024, section 356.315, subdivision 9, is amended to read:

Subd. 9.

Future benefit accrual rate increases.

After January 2, 1998, benefit accrual

rate increases under section
352.115, subdivision 3
;
352.87, subdivision
3;
352.93,

subdivision 3
;
352.95, subdivision 1
;
352B.08, subdivision 2
;
352B.10
, subdivision 1;

353.29, subdivision 3
;
353.651, subdivision 3
;
353.656, subdivision
1, 1a, or 3a;
353E.04,

subdivision 3
;
353E.06, subdivision 1
;
new text begin
353H.05, subdivision 1;
new text end
354.44, subdivision 6
;

354A.31, subdivision 4
or 4a;
356.30, subdivision 1
;
490.121, subdivision 22
; or
490.124
,

subdivision 1, must apply only to allowable service or formula service rendered after the

effective date of the benefit accrual rate increase.

Sec. 33.

Minnesota Statutes 2024, section 356.32, subdivision 2, is amended to read:

Subd. 2.

Covered retirement plans.

The provisions of this section apply to the following

retirement plans:

(1) the general state employees retirement plan of the Minnesota State Retirement System,

established under chapter
352
;

(2) the correctional state employees retirement plan of the Minnesota State Retirement

System, established under chapter
352
;

(3) the State Patrol retirement plan, established under chapter
352B
;

(4) the general employees retirement plan of the Public Employees Retirement

Association, established under chapter
353
;

(5) the public employees police and fire plan of the Public Employees Retirement

Association, established under chapter
353
;

(6) the local government correctional service retirement plan of the Public Employees

Retirement Association, established under chapter
353E
;

(7) the Teachers Retirement Association, established under chapter
354
;
deleted text begin
and
deleted text end

(8) the St. Paul Teachers Retirement Fund Association, established under chapter
354A
deleted text begin
.
deleted text end
new text begin
;

and
new text end

new text begin

(9) the local government probation and telecommunicator retirement plan of the Public

Employees Retirement Association, established under chapter 353H.

new text end

Sec. 34.

Minnesota Statutes 2024, section 356.401, subdivision 3, is amended to read:

Subd. 3.

Covered retirement plans.

The provisions of this section apply to the following

retirement plans:

(1) the legislators retirement plan, established by chapter 3A, including constitutional

officers as specified in that chapter;

(2) the general state employees retirement plan of the Minnesota State Retirement System,

established by chapter 352;

(3) the correctional state employees retirement plan of the Minnesota State Retirement

System, established by chapter 352;

(4) the State Patrol retirement plan, established by chapter 352B;

(5) the unclassified state employees retirement program, established by chapter 352D;

(6) the general employees retirement plan of the Public Employees Retirement

Association, established by chapter 353;

(7) the public employees police and fire plan of the Public Employees Retirement

Association, established by chapter 353;

(8) the public employees defined contribution plan, established by chapter 353D;

(9) the local government correctional service retirement plan of the Public Employees

Retirement Association, established by chapter 353E;

(10) the statewide lump-sum volunteer firefighter plan, established by chapter 353G;

(11) the Teachers Retirement Association, established by chapter 354;

(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;

(13) the individual retirement account plan, established by chapter 354B;

(14) the higher education supplemental retirement plan, established by chapter 354C;
deleted text begin

and
deleted text end

(15) the judges retirement fund, established by chapter 490
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(16) the local government probation and telecommunicator retirement plan of the Public

Employees Retirement Association, established by chapter 353H.

new text end

Sec. 35.

Minnesota Statutes 2024, section 356.415, subdivision 2, is amended to read:

Subd. 2.

Covered retirement plans.

The provisions of this section apply to the following

retirement plans:

(1) the legislators retirement plan
new text begin
,
new text end
established under chapter 3A, including constitutional

officers as specified in that chapter;

(2) the correctional state employees retirement plan of the Minnesota State Retirement

System
new text begin
,
new text end
established under chapter 352;

(3) the general state employees retirement plan of the Minnesota State Retirement System
new text begin
,
new text end

established under chapter 352;

(4) the State Patrol retirement plan
new text begin
,
new text end
established under chapter 352B;

(5) the general employees retirement plan of the Public Employees Retirement

Association
new text begin
,
new text end
established under chapter 353;

(6) the public employees police and fire retirement plan of the Public Employees

Retirement Association
new text begin
,
new text end
established under chapter 353;

(7) the local government correctional employees retirement plan of the Public Employees

Retirement Association
new text begin
,
new text end
established under chapter 353E;

(8) the teachers retirement plan
new text begin
,
new text end
established under chapter 354;
deleted text begin
and
deleted text end

(9) the judges retirement plan
new text begin
,
new text end
established under chapter 490
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(10) the local government probation and telecommunicator retirement plan of the Public

Employees Retirement Association, established under chapter 353H.

new text end

Sec. 36.

Minnesota Statutes 2024, section 356.461, subdivision 2, is amended to read:

Subd. 2.

Covered plans.

This section applies to the following retirement plans:

(1) the legislators retirement plan, established under chapter 3A, including constitutional

officers as specified in that chapter;

(2) the correctional state employees retirement plan of the Minnesota State Retirement

System, established under chapter 352;

(3) the general state employees retirement plan of the Minnesota State Retirement System,

established under chapter 352;

(4) the State Patrol retirement plan, established under chapter 352B;

(5) the unclassified state employees retirement program of the Minnesota State Retirement

System, established under chapter 352D;

(6) the judges retirement plan, established under chapter 490;

(7) the general employees retirement plan of the Public Employees Retirement

Association, established under chapter 353;

(8) the public employees police and fire retirement plan of the Public Employees

Retirement Association, established under chapter 353;

(9) the local government correctional service retirement plan of the Public Employees

Retirement Association, established under chapter 353E;
deleted text begin
and
deleted text end

(10) the Teachers Retirement Association, established under chapter 354
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(11) the local government probation and telecommunicator retirement plan of the Public

Employees Retirement Association, established under chapter 353H.

new text end

Sec. 37.

Minnesota Statutes 2024, section 356.465, subdivision 3, is amended to read:

Subd. 3.

Covered retirement plans.

The provisions of this section apply to the following

retirement plans:

(1) the general state employees retirement plan of the Minnesota State Retirement System
new text begin
,
new text end

established under chapter 352;

(2) the correctional state employees retirement plan of the Minnesota State Retirement

System
new text begin
,
new text end
established under chapter 352;

(3) the State Patrol retirement plan
new text begin
,
new text end
established under chapter 352B;

(4) the legislators retirement plan
new text begin
,
new text end
established under chapter 3A;

(5) the judges retirement plan
new text begin
,
new text end
established under chapter 490;

(6) the general employees retirement plan of the Public Employees Retirement

Association
new text begin
,
new text end
established under chapter 353;

(7) the public employees police and fire plan of the Public Employees Retirement

Association
new text begin
,
new text end
established under chapter 353;

(8) the teachers retirement plan
new text begin
,
new text end
established under chapter 354;

(9) the St. Paul Teachers Retirement Fund Association
new text begin
,
new text end
established under chapter 354A;
deleted text begin

and
deleted text end

(10) the local government correctional service retirement plan of the Public Employees

Retirement Association
new text begin
,
new text end
established under chapter 353E
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(11) the local government probation and telecommunicator retirement plan of the Public

Employees Retirement Association, established under chapter 353H.

new text end

Sec. 38.

Minnesota Statutes 2024, section 356.47, subdivision 3, is amended to read:

Subd. 3.

Payment.

(a) Beginning one year after the reemployment withholding period

ends relating to the reemployment that gave rise to the limitation, and the filing of a written

application, the retired member is entitled to the payment, in a lump sum, of the value of

the person's amount under subdivision 2, plus annual compound interest. For the general

state employees retirement plan, the correctional state employees retirement plan, the general

employees retirement plan of the Public Employees Retirement Association, the public

employees police and fire retirement plan, the local government correctional employees

retirement plan,
new text begin
the local government probation and telecommunicator retirement plan,
new text end
and

the teachers retirement plan, the annual interest rate is six percent from the date on which

the amount was deducted from the retirement annuity to the date of payment or until January

1, 2011, whichever is earlier, and no interest after January 1, 2011. For the St. Paul Teachers

Retirement Fund Association, the annual interest is the rate of six percent from the date that

the amount was deducted from the retirement annuity to the date of payment or June 30,

2011, whichever is earlier, and with no interest accrual after June 30, 2011.

(b) The written application must be on a form prescribed by the chief administrative

officer of the applicable retirement plan.

(c) If the retired member dies before the payment provided for in paragraph (a) is made,

the amount is payable, upon written application, to the deceased person's surviving spouse,

or if none, to the deceased person's designated beneficiary, or if none, to the deceased

person's estate.

(d) If the amount under subdivision 2 is an eligible rollover distribution as defined in

section
356.633, subdivision 1
, paragraph (d), the applicable retirement plan shall provide

notice and an election:

(1) to the member regarding the member's right to elect a direct rollover under section

356.633
, subdivisions 1 and 2, in lieu of a direct payment; or

(2) if paragraph (c) applies and the amount is to be paid to a person who is a distributee

as defined in section
356.633, subdivision 1
, paragraph (b), to the distributee regarding the

distributee's right to elect a direct rollover under section
356.633
, subdivisions 1 and 2, in

lieu of a direct payment.

Sec. 39.

Minnesota Statutes 2024, section 356.48, subdivision 1, is amended to read:

Subdivision 1.

Covered plans.

This section applies to the following retirement plans:

(1) the general state employees retirement plan of the Minnesota State Retirement System
new text begin
,
new text end

established under chapter 352;

(2) the correctional state employees retirement plan of the Minnesota State Retirement

System
new text begin
,
new text end
established under chapter 352;

(3) the State Patrol retirement plan
new text begin
,
new text end
established under chapter 352B;

(4) the unclassified state employees retirement program of the Minnesota State Retirement

System
new text begin
,
new text end
established under chapter 352D;

(5) the general employee retirement plan of the Public Employees Retirement Association
new text begin
,
new text end

established under chapter 353;

(6) the public employees police and fire retirement plan
new text begin
,
new text end
established under chapter 353;

(7) the local government correctional employees retirement plan of the Public Employees

Retirement Association
new text begin
,
new text end
established under chapter 353E;

(8) the Teachers Retirement Association
new text begin
,
new text end
established under chapter 354;

(9) the St. Paul Teachers Retirement Fund Association
new text begin
,
new text end
established under chapter 354A;
deleted text begin

and
deleted text end

(10) the uniform judicial retirement plan
new text begin
,
new text end
established under chapter 490
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(11) the local government probation and telecommunicator retirement plan of the Public

Employees Retirement Association, established under chapter 353H.

new text end

Sec. 40.

Minnesota Statutes 2024, section 356.611, subdivision 6, is amended to read:

Subd. 6.

Covered retirement plan.

As used in this section, "covered retirement plan"

means any of the following plans:

(1) the legislator's retirement plan, established by chapter 3A, including constitutional

officers as specified in that chapter;

(2) the general state employees retirement plan of the Minnesota State Retirement System,

established by chapter 352;

(3) the correctional state employees retirement plan of the Minnesota State Retirement

System, established by chapter 352;

(4) the State Patrol retirement plan, established by chapter 352B;

(5) the unclassified state employees retirement plan, established by chapter 352D;

(6) the general employees retirement plan of the Public Employees Retirement

Association, established by chapter 353;

(7) the public employees police and fire retirement plan of the Public Employees

Retirement Association, established by chapter 353;

(8) the public employees defined contribution plan, established by chapter 353D;

(9) the local government correctional service retirement plan of the Public Employees

Retirement Association, established by chapter 353E;

(10) the statewide volunteer firefighter retirement plan, established by chapter 353G;

(11) the Teachers Retirement Association, established by chapter 354;

(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;

(13) the higher education individual retirement account plan, established by chapter

354B;

(14) the higher education supplemental retirement plan, established by chapter 354C;

(15) a retirement plan of a volunteer firefighter retirement association subject to chapter

424A;

(16) the judges retirement plan, established by chapter 490;
deleted text begin
or
deleted text end

(17) the Bloomington Fire Department Relief Association governed by Laws 2013,

chapter 111, article 5, sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws

1965, chapter 446, as amended
deleted text begin
.
deleted text end
new text begin
; or
new text end

new text begin

(18) the local government probation and telecommunicator retirement plan of the Public

Employees Retirement Association, established under chapter 353H.

new text end

Sec. 41.
new text begin
EFFECTIVE DATE.
new text end

new text begin

Sections 1 to 40 are effective upon enactment in the 2026 regular or special session of

a bill styled as H.F. No. .../S.F. No. ..., also referred to as revisor number ..., section ..., or

its equivalent.

new text end