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HF3256 (Legislative Session 94 (2025-2026))

Public employees police and fire retirement plan; reemployment earnings limit applicable to disability benefit payments increased.

Related bill: SF356

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to amend the rules governing the reemployment earnings limit for disability benefit recipients under the Minnesota public employees' police and fire retirement plan. This change aims to adjust how much a person can earn from working before their disability benefits are reduced.

Main Provisions

  • The bill revises the method for calculating the reduction in disability benefit payments for individuals who return to work and earn additional income.
  • It increases the reemployment earnings limit from 125% to 150% of the base monthly salary paid by the employing governmental subdivision for similar positions.
  • For members who began receiving disability payments before July 1, 2023, and are exempt from reapplication rules, the calculation of benefit reduction is updated. If their combined income from employment, disability benefits, and, if applicable, workers' compensation benefits exceed the earnings limit, their benefits will be reduced accordingly.
  • For members who begin receiving disability payments on or after July 1, 2023, or are required to reapply, the bill outlines a specific calculation for reducing the disability benefit each year based on their reemployment earnings, service record, and age at the time of disability.

Significant Changes

  • The key change is the increase in the reemployment earnings threshold from 125% to 150% of the base salary, which allows disability benefit recipients to earn more before their benefits are decreased.
  • New rules are provided for the calculation of earnings and benefit reductions for those starting disability payments from July 2023 onward, or those required to reapply after that date.
  • Different rules are specified based on the length of service and age, with particular calculations set for those with under 20 years of service for duty disabilities or under 15 years for regular disabilities.

Exclusions

  • The revised earnings and reduction calculations do not apply to those receiving total and permanent disability benefits under specific sections (353.656 subdivision 1a or 3a).

Relevant Terms

  • Disability benefit
  • Reemployment earnings limit
  • Public employees police and fire retirement plan
  • Workers' compensation benefits
  • Base monthly salary
  • Service years

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 27, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy
April 27, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the reemployment earnings limit applicable to disability benefit payments under section 353.656, subdivision 4.",
      "modified": [
        "Increases the percentage of the base monthly salary for reemployment earnings limit from 125% to 150%."
      ]
    },
    "citation": "353.656",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References requirements for reapplication of disability benefits under section 353.031, subdivision 8.",
      "modified": []
    },
    "citation": "353.031",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines terms related to police officer, firefighter, and paramedic salaries under section 353.64, subdivision 10, in context of disability benefit conditions.",
      "modified": []
    },
    "citation": "353.64",
    "subdivision": "subdivision 10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines the employee contribution rate used in calculations for disability benefits under section 353.65, subdivision 2.",
      "modified": [
        "Provides a formula based on the employee contribution rate to calculate reductions in disability benefits."
      ]
    },
    "citation": "353.65",
    "subdivision": "subdivision 2"
  }
]

Sponsors