HF4074 (Legislative Session 94 (2025-2026))
Administrative changes made to statutes governing the retirement plans administered by the Minnesota State Retirement System, correctional employees clarified to remain in the correctional employees retirement plan while working for a labor organization, various other retirement provisions modified.
Related bill: SF4276
AI Generated Summary
Purpose
The bill makes changes to Minnesota’s retirement statutes to simplify and adjust how retirement benefits are earned and managed for state employees, especially when someone is on leave to work for a labor organization. It also clarifies which retirement plan certain workers stay in, updates how annuity applications work, and adds new rules for deputy state fire marshals and the state fire marshal subplan.
Main provisions (what the bill does)
State employee retirement coverage
- Reiterates that most state employees are covered by the general state employees retirement plan unless they are specifically in the correctional employees retirement plan.
- Choosing coverage involves a formal election and salary deductions to fund retirement benefits.
Leave to work for a labor organization
- Employees on leave to serve as part of a labor organization’s exclusive bargaining agent can elect to be covered by either the general state employees retirement plan or the correctional employees retirement plan for that labor organization-related service.
- Elections must be made within set timeframes (generally within 90 days of employment or starting the leave).
- The labor organization can pay the employer contributions required for the chosen plan.
Salary limits for labor organization members
- For members electing coverage under a labor organization arrangement, the “covered salary” is capped at the lesser of the actual salary or 75% of the governor’s salary.
- This capped salary is used to determine retirement contributions and benefits.
Contributions
- Employee and employer contributions follow the plan in effect, but the labor organization may pay the employer’s required contributions to the chosen plan.
- Employee contributions are made through salary deductions; employer contributions are handled either by the employee’s plan or by the labor organization as applicable.
Annuity and benefit procedures
- Keeps existing annuity and benefit filing processes but updates terminology and procedural details for accuracy and consistency.
State Fire Marshal subplan and deputy fire marshals
- Clarifies eligibility for retirement benefits for deputy state fire marshals who elect special benefit coverage under the state fire marshal subplan.
- Sets minimum eligibility age (typically 55) for receiving retirement benefits for those in the fire marshal subplan.
- Creates a process for current deputy state fire marshals to elect coverage under the fire marshal subplan, including retroactive coverage from the first day of employment and related back-contribution rules.
Corrections to the correctional plan governance
- The correctional plan membership committee is exempt from the open meeting law and certain agency appointment/registration requirements.
- The committee is not considered an agency for certain state governance statutes.
Election of coverage for current deputy state fire marshals
- Defines an eligible employee and allows them to elect coverage under the fire marshal subplan within a 60-day window after enactment.
- Elections are irrevocable during any period of covered employment.
- If coverage is elected, back contributions (employee and employer) can be calculated and must be paid, with timing set for payment and notice to the employee and employer.
Repeal
- Repeals an existing subdivision related to the open meeting law around the correctional plan membership committee.
Specific changes to existing law
- Adds new options for labor organization employees to choose between two retirement plans (general plan or corrections plan) for service related to labor organization duties.
- Introduces a 75% governor’s salary cap to determine “covered salary” for benefits and contributions for certain labor organization-employee scenarios.
- Allows labor organizations to pay employer retirement contributions on behalf of covered employees.
- Establishes a retroactive election mechanism and back-contribution requirements for current deputy state fire marshals who elect coverage under the state fire marshal subplan.
- Provides a governance exemption for the correctional plan membership committee (not subject to certain open meeting or agency rules).
Effects on people and processes
- State employees and labor organizations: more options for how retirement benefits are funded when an employee serves as a labor organizer or in related roles.
- Deputy state fire marshals: new path to retire under the state fire marshal subplan, with retroactive coverage and back contributions if they opt in.
- Correctional retirement plan governance: reduced regulatory burdens for the correctional plan membership committee.
Relevant administrative details
- Elections and notices must follow specified timing windows (e.g., within 60 or 90 days, depending on context).
- Contributions may be paid by the labor organization, but must be processed through the Minnesota State Retirement System.
- For retirements, annuity and payment rules remain monthly and fixed unless otherwise provided by the statute.
Potential implications and considerations
- Financial: the salary cap and the structure for who pays employer contributions could affect retirement funding levels and who bears costs.
- Governance: exemptions for the correctional plan membership committee reduce regulatory hurdles but shift governance dynamics.
- Retroactive coverage: retroactive election rights for deputy fire marshals could create back-dated financial obligations for employers and employees.
Relevant Terms - Minnesota State Retirement System - general state employees retirement plan - correctional employees retirement plan - labor organization - exclusive bargaining agent - state fire marshal subplan - deputy state fire marshal - firearson investigator - special benefit coverage - open meeting law - correctional plan membership committee - 75 percent of the governor’s salary - covered salary - employee contributions - employer contributions - retroactive coverage - annuity application and accrual - retirement benefits - retirement system amendments - election of coverage - irrevocable elections - back contributions
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 09, 2026 | House | Action | Introduction and first reading, referred to | State Government Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"Explicitly states that deductions for retirement contributions are to be deposited to the appropriate retirement fund."
],
"removed": [],
"summary": "Amends state employee retirement coverage to reference existing plans and clarifies payroll deductions.",
"modified": []
},
"citation": "352.021",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [
"Election option to be covered by the general state employees retirement plan for labor organization service."
],
"removed": [],
"summary": "Allows a state employee on leave to provide service to a labor organization to elect coverage under a retirement plan for service with the labor organization.",
"modified": []
},
"citation": "352.029",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [
"Written election required within a 90-day period, with timing rules based on employment or start of leave."
],
"removed": [],
"summary": "Establishes the election mechanism for election to be covered by a retirement plan when working for a labor organization.",
"modified": []
},
"citation": "352.029",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [
"Cap on covered salary for labor organization employees: the lesser of actual salary or 75% of the governor's salary."
],
"removed": [],
"summary": "Imposes salary-based limitations on benefits and contributions for labor organization coverage.",
"modified": []
},
"citation": "352.029",
"subdivision": "subdivision 2a"
},
{
"analysis": {
"added": [
"Labor organization may pay employer contributions to the applicable retirement fund; salary deduction for employee contributions remains."
],
"removed": [],
"summary": "Details on employee and employer contributions when labor organization coverage is elected.",
"modified": []
},
"citation": "352.029",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
"Specific requirements for original applications and supporting documents; 60-day deadline for supporting documents."
],
"removed": [],
"summary": "Sets application procedures for annuities and related benefits.",
"modified": []
},
"citation": "352.115",
"subdivision": "subdivision 7a"
},
{
"analysis": {
"added": [
"Clarifies that annuity accrual begins under defined timeframes and that payments occur in monthly installments."
],
"removed": [],
"summary": "Outlines accrual timing for annuities and related benefits.",
"modified": []
},
"citation": "352.115",
"subdivision": "subdivision 8"
},
{
"analysis": {
"added": [
"Affirms monthly payment requirement and related conditions for annuities and disability benefits."
],
"removed": [],
"summary": "Specifies monthly payment structure for annuities and related benefits.",
"modified": []
},
"citation": "352.115",
"subdivision": "subdivision 9"
},
{
"analysis": {
"added": [
"Eligibility conditions for special benefit coverage under the deputy state fire marshal provisions; includes age and service criteria and effective dates."
],
"removed": [],
"summary": "Defines eligibility for deputy state fire marshal retirement benefits with special coverage.",
"modified": []
},
"citation": "352.87",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [
"Clarifies eligibility mirroring general plan requirements for retirement annuities."
],
"removed": [],
"summary": "Sets retirement annuity eligibility for individuals under the general plan related to deputy state fire marshal provisions.",
"modified": []
},
"citation": "352.87",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [
"Repeals Minnesota Statutes 2024 section 352.87 subdivision 8."
],
"summary": "Repeal of a prior provision related to subdivision 8.",
"modified": []
},
"citation": "352.87",
"subdivision": "subdivision 8"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Maintains labor organization employees under the correctional retirement plan.",
"modified": [
"Adds a subdivision clarifying continued coverage for labor organization employees under the correctional retirement plan."
]
},
"citation": "352.905",
"subdivision": "subdivision 8"
},
{
"analysis": {
"added": [
"Clarifies that the correctional plan membership committee is not subject to certain open meetings or agency appointment rules."
],
"removed": [],
"summary": "Exempts the correctional plan membership committee from certain laws.",
"modified": []
},
"citation": "352.907",
"subdivision": "subdivision 7"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Reference to specific openmeeting-law-related provisions (chapter 13D context in this bill).",
"modified": []
},
"citation": "15.0597",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Reference to specific openmeeting-law-related provisions (chapter 13D context in this bill).",
"modified": []
},
"citation": "15.0599",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Governor salary reference used for salary cap calculations in labor organization coverage.",
"modified": []
},
"citation": "15A.082",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Notes that the correctional plan membership committee is not subject to chapter 13D.",
"modified": []
},
"citation": "chapter 13D",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as a broader statutory chapter in relation to annuities and retirement.",
"modified": []
},
"citation": "3A",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as part of the scope of related retirement provisions (chapter references in the bill).",
"modified": []
},
"citation": "352B",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as part of the schedule of retirement-related chapters.",
"modified": []
},
"citation": "352D",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced in relation to other monthly benefits under the applicable chapters.",
"modified": []
},
"citation": "490",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cited in relation to salary-based limitations affecting benefits and contributions for labor organization coverage.",
"modified": []
},
"citation": "352.75",
"subdivision": ""
},
{
"analysis": {
"added": [
"Labor organization may pay employer contributions as allowed by statute; employee contributions via salary deduction continue."
],
"removed": [],
"summary": "Describes how employee and employer contributions are determined when labor organization coverage is elected.",
"modified": []
},
"citation": "352.04",
"subdivision": "subdivision 2 and 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Used for determining retirement contributions and related benefits when labor organization coverage is elected.",
"modified": []
},
"citation": "352.92",
"subdivision": ""
},
{
"analysis": {
"added": [
"Acknowledgment requirements for spousal consent in certain benefit elections."
],
"removed": [],
"summary": "Spousal acknowledgment requirement tied to pension applications and benefit elections.",
"modified": []
},
"citation": "356.46",
"subdivision": "subdivision 3, paragraph b"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Interest calculation on contributions related to the labor organization coverage.",
"modified": []
},
"citation": "356.59",
"subdivision": "subdivision 2"
}
]Progress through the legislative process
In Committee