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SF3493 (Legislative Session 94 (2025-2026))

Public Employees Retirement Association employer failure to record service correction provision and employee and employer contributions on omitted service and extending Rule of 90 eligibility for an eligible employee requirement provision

Related bill: HF3300

AI Generated Summary

Purpose of the Bill

The bill aims to address an issue regarding unrecorded service time for a specific employee in the context of retirement benefits. It seeks to ensure that both employee and employer contributions are made for previously unreported service, thereby enabling eligibility for retirement benefits.

Main Provisions

  • Employer and Employee Contributions: The bill requires that Alaine Pappin and Independent School District No. 281 (Robbinsdale) make contributions to account for service provided before July 1, 1989, that was not originally reported.
  • Pension Plan Enrollment: Despite Alaine Pappin not being enrolled in a public pension plan during the time of the unreported service, the bill allows these contributions to be made, enabling retroactive membership in the pension fund.
  • Eligibility for Retirement Benefits: By allowing these contributions, the bill establishes Alaine Pappin’s eligibility for an "unreduced early retirement benefit," which is a valuable retirement benefit that participants receive without any reduction despite early retirement.
  • Calculation of Contributions: Contributions must be calculated, including any interest, based on the omitted salary amount. This calculation is the responsibility of the Public Employees Retirement Association.

Significant Changes to Existing Law

  • The bill creates an exception by allowing retroactive contributions for unreported service, thereby modifying the standard process for how and when contributions to retirement plans are made and reported for public employees.

Relevant Terms

retirement, Public Employees Retirement Association, employer contributions, employee contributions, omitted service, Rule of 90, pension fund, retroactive membership, early retirement benefit, Independent School District No. 281, Robbinsdale, Alaine Pappin.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
May 06, 2025SenateFloorActionIntroduction and first reading
May 06, 2025SenateFloorActionIntroduction and first reading
May 06, 2025SenateFloorActionReferred toState and Local Government

Citations

 
[
  {
    "analysis": {
      "added": [
        "Specifies the process for retroactive contributions to establish pension eligibility."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill pertains to the payment of contributions for unreported eligible service for retirement under section 353.27.",
      "modified": [
        "Ensures contributions account for omitted salary with interest."
      ]
    },
    "citation": "353.27",
    "subdivision": "subdivision 12b"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The bill references existing pension fund membership eligibility requirements in section 356.30.",
      "modified": [
        "Clarifies how retroactive contributions establish membership and early retirement benefits."
      ]
    },
    "citation": "356.30",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The bill mentions early retirement benefits under section 354.44.",
      "modified": [
        "Defines eligibility for unreduced early retirement benefits contingent on retroactive contributions."
      ]
    },
    "citation": "354.44",
    "subdivision": ""
  }
]

Sponsors