Minnesota State Retirement System retirement plans statutes administrative modifications

A bill for an act

relating to retirement; making administrative changes to statutes governing the

retirement plans administered by the Minnesota State Retirement System; clarifying

that correctional employees remain in the correctional employees retirement plan

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

annuity application procedures; modifying enrollment procedures in the state fire

marshals subplan; clarifying that the correctional plan membership committee is

not subject to the open meeting law and agency appointment and registration

requirements; allowing current deputy fire marshals to elect coverage by the state

fire marshals subplan; amending Minnesota Statutes 2024, sections 352.021,

subdivision 2; 352.029, subdivisions 1, 2, 2a; 352.115, subdivisions 7a, 8, 9;

352.87, subdivisions 1, 2; Minnesota Statutes 2025 Supplement, sections 352.029,

subdivision 3; 352.905, by adding a subdivision; 352.907, by adding a subdivision;

repealing Minnesota Statutes 2024, section 352.87, subdivision 8.

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

Section 1.

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

Subd. 2.

State employees covered.

Every person who becomes a state employee as

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

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

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

consent
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by the state employee
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to have deductions made from salary for deposit to the credit

of the account of the state employee in the retirement fund
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of the plan that provides retirement

coverage for the state employee
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.

Sec. 2.

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

Subdivision 1.

Qualifications.

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(a)
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Unless
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already
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specifically included under section

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

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

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

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

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

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

set forth in subdivisions 2a and 2b.

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

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

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

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

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

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

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

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Sec. 3.

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

Subd. 2.

Election.

A person described in subdivision 1 is covered by the
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system
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general

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

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

to be covered
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is delivered
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to the executive director within 90 days of being employed by

the labor organization
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,
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or within 90 days of starting the first leave of absence
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with an

exclusive bargaining agent
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to provide service as an employee or officer of a labor

organization
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, whichever is later.

Sec. 4.

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

Subd. 2a.

Limitations on salary for benefits and contributions.

(a) The covered salary

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

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

to the lesser of:

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

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

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

determining employee, employer, and
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supplemental
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employer
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additional
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contributions under
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section
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sections
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352.04
, subdivisions 2 and 3,
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and 352.92
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and in determining retirement

annuities and other benefits under this chapter and chapter 356.

Sec. 5.

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

to read:

Subd. 3.

Contributions.

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(a)
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The employee and employer contributions required by

section
352.04
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,
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for employees covered by the general state employees retirement plan
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or

by section
352.92
for employees covered by
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section
352.905
,
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the correctional employees

retirement plan
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are the obligation of the employee
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who is a member under section
352.01,

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

employing labor organization may pay the employer contributions
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to the general state

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

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

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

plan
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.

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(b)
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Contributions made by the employee must be made by salary deduction.
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The

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

352.04
, or by section
352.92
for employees covered by section
352.905
.
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Sec. 6.

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

Subd. 7a.

Application procedure.

(a) The
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filing of an
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application for an annuity, refund,

disability benefit, survivor benefit, death benefit, or other
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monthly
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benefit authorized by

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

(b) Filing of an application
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under paragraph (a) is not complete until
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is effective on the

date
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an original application
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and supporting documents are
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is
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received in an office of the

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

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

delivered by personal service or mail.

(c)
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In this subdivision,
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To complete the application, supporting documents must be

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

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

original documents except as determined by the director.
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"
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Supporting documents
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"
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are:

(1) documents sufficient to verify birth
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date
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;

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

applicable; and

(3) the
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spousal
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acknowledgment required by section
356.46, subdivision 3
, paragraph

(b).

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

the director.

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Sec. 7.

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

Subd. 8.

Accrual of annuity.

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(a)
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The application for an annuity must not be
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made
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filed
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more than 60 days before the
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time
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date
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the state employee or former state employee elects

to begin collecting a retirement annuity.

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

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

chapter and payment must be made as authorized.

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

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

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

service requirements.

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

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

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

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

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

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

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

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

month in which the retired employee died.

Sec. 8.

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

Subd. 9.

Annuities payable monthly.

All annuities, and disability benefits authorized

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

decreased, or revoked except as provided in this chapter
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or chapter 356
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.

Sec. 9.

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

Subdivision 1.

Eligibility.

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(a)
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A member of the general
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state employees retirement
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plan

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

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

subdivision 8,
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is entitled to retirement
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benefits
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or disability benefits, as applicable, as stated

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

allowable service credit is received
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.
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if the member is first employed as a deputy state fire

marshal, fire/arson investigator:
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(1) before July 1, 2026, and the member elected special benefit coverage under the laws

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

investigator; or

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(2) after June 30, 2026.

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

specified in subdivision 3.

Sec. 10.

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

Subd. 2.

Retirement annuity eligibility.

A person specified in subdivision 1 who meets

all eligibility requirements specified in this chapter applicable to
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general plan
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members
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of

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

in subdivision 3.

Sec. 11.

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

subdivision to read:

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Subd. 8.

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Employees of labor organization.

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Employees who meet the coverage and

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

employees retirement plan.

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Sec. 12.

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

subdivision to read:

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Subd. 7.

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Certain laws not applicable to the membership committee.

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(a) Meetings of

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

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

sections 15.0597 and 15.0599.

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Sec. 13.
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ELECTION OF COVERAGE FOR CURRENT DEPUTY STATE FIRE

MARSHALS.
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Subdivision 1.

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Definition.

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

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

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

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

before October 5, 2022.

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Subd. 2.

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Election of coverage.

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

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

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

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

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

employment.

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

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

is effective retroactively from the first day of employment.

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

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Subd. 3.

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Calculation of additional contributions due.

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(a) Upon the request of an

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

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

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

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

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

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

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

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

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

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

rate or rates specified in section 356.59, subdivision 2.

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

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

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

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Subd. 4.

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Payment of additional contributions.

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(a) If an eligible employee files a notice

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

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

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

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

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

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

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

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

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

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

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

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Sec. 14.
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REPEALER.
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Minnesota Statutes 2024, section 352.87, subdivision 8,

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is repealed.

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Sec. 15.
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EFFECTIVE DATE.
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Sections 1 to 14 are effective July 1, 2026.

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APPENDIX

Repealed Minnesota Statutes: 26-06997

352.87 STATE FIRE MARSHAL DIVISION EMPLOYEES.

Subd. 8.

Election of coverage.

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