SF4276 (Legislative Session 94 (2025-2026))
Minnesota State Retirement System retirement plans statutes administrative modifications
AI Generated Summary
Purpose
- Update and streamline retirement statute rules administered by the Minnesota State Retirement System (MSRS).
- Clarify which retirement plans apply to state employees working for labor organizations, and make enrollment, contribution, and benefits procedures clearer.
- Adjust how the state fire marshal subplan works and who can choose it.
- Improve administration of annuity and benefit applications.
- Create governance and process changes for the correctional plan membership committee (including open meeting and agency-appointment rules).
- Allow current deputy fire marshals to elect coverage under the state fire marshals subplan.
- Repeal an existing subdivision of a statute related to these provisions.
Main Provisions
Coverage and enrollment
- State employees are generally covered by the general state employees retirement plan unless they are in the correctional employees retirement plan.
- Employees on leave to work for a labor organization may elect to be covered by the general plan (for labor organization service) or by the correctional plan (for labor organization service), within specified time limits.
- An employee must file a written election within 90 days of starting state employment or the first leave of absence to provide labor organization service.
Salary rules and benefit calculations
- For labor organization employees, the “covered salary” is limited to the lesser of actual salary or 75% of the governor’s salary.
- This limited covered salary is used to determine retirement contributions and benefit calculations.
Contributions
- Employee and employer contributions follow the normal rules for the selected plan, but an employing labor organization may pay employer contributions for these employees.
- Employee contributions are made via salary deduction; the labor organization may handle the employer contributions.
Annuity and application procedures
- Changes to how annuity, disability, survivor, and other monthly benefits applications are filed and processed (including documentation timing and deadlines).
- Annuities begin accruing no earlier than 180 days before the filing date, and only after statutory eligibility is met.
- Applications and supporting documents have clarified timelines and requirements (e.g., documents to verify birth date and marital status).
Fire marshal subplan and deputy fire marshal coverage
- The bill creates or clarifies coverage options for deputy state fire marshals and arson investigators under the state fire marshals subplan, including eligibility criteria and age requirements for retirement benefits.
- It allows current deputy state fire marshals to elect coverage by the state fire marshals subplan, with specific timelines and retroactive effect.
Correctional plan governance and open meeting rules
- The correctional plan membership committee is not subject to the open meeting law, and it is not considered an “agency” for certain statutory requirements.
- This protects confidential or internal committee processes from certain public meeting and appointment rules.
Elections and retroactive coverage
- Current deputy state fire marshals who meet the defined criteria may elect retroactive coverage to the first day of employment, with a 60-day window to file.
- The bill provides procedures to calculate and recover any missed contributions (with interest) if retroactive coverage is elected.
Repeal
- Repeals a specific subdivision (352.87, subdivision 8), removing that prior provision from law.
Changes to Existing Law
- Expands and clarifies how labor organization work relates to retirement plan coverage, including the ability to elect coverage under either the general plan or the correctional plan during leaves of absence.
- Introduces a salary cap for benefits and contributions related to labor organization employees.
- Allows labor organizations to pay certain contributions on behalf of covered employees.
- Updates and standardizes annuity and benefit application processes.
- Creates a retroactive election option for current deputy state fire marshals to switch to the state fire marshal subplan, with defined payment and timing requirements.
- Reduces regulatory constraints on the correctional plan membership committee by exempting it from certain open meeting and agency-appointment rules.
- Repeals a prior subdivision, removing an old rule from statute.
Implementation Details and Timeline
- Elections to be filed within 90 days of starting employment or first leave to provide labor organization service (Sec. 2, Sec. 3).
- For deputy fire marshals seeking retroactive coverage, a 60-day filing window after enactment is required (Sec. 13).
- Contributions timing:
- If retroactive coverage is elected, the employee must pay back missed employee contributions plus interest; the employer must pay back missed employer contributions plus interest within set timeframes (Sec. 13).
- Annuity and benefit processing timelines revised for consistency and administrative efficiency (Secs. 6–8, 9–10).
- Repeal of 352.87, subdivision 8 takes effect as directed by the bill (Sec. 14).
Potential Impacts
- For employees who work for labor organizations, retirement plan choices and contributed amounts may change, affecting future benefits and retirement timing.
- The salary cap for labor organization-covered positions may influence benefit totals and employer contributions.
- Correctional plan governance will involve fewer public meeting requirements, which could affect transparency expectations for those workers and the public.
- Deputy state fire marshals may gain a path to align their retirement coverage with the fire marshal subplan and may owe back contributions if they elect retroactively.
Relevant terms - Minnesota State Retirement System (MSRS) - general state employees retirement plan - correctional employees retirement plan - state fire marshal subplan - labor organization - exclusive bargaining agent - election of coverage - contributions (employee and employer) - salary deduction - covered salary - retirement annuity - disability benefits - survivor benefits - annuity accrual - optional annuity - correctional plan membership committee - open meeting law - agency appointment requirements - deputy state fire marshal - firearson investigator - retroactive coverage - interst on back contributions - repeal (352.87 subdivision 8)
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 09, 2026 | Senate | Action | Introduction and first reading | ||
| March 09, 2026 | Senate | Action | Referred to | State and Local Government |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 352.021 subdivision 2 to define which state employees are covered by the general state employees retirement plan (state employees) and to confirm payroll deductions to the appropriate retirement fund.",
"modified": []
},
"citation": "352.021",
"subdivision": "Subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 352.029 subdivision 1 to establish qualifications for election to the general or correctional retirement plans for state employees on leave to provide labor organization services.",
"modified": []
},
"citation": "352.029",
"subdivision": "Subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 3 clarifies election to be covered by either the general state employees retirement plan or the correctional employees retirement plan for labor organization service.",
"modified": []
},
"citation": "352.029",
"subdivision": "Subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 4a imposes salary limitations for benefits and contributions when covered under labor organization-related arrangements.",
"modified": []
},
"citation": "352.029",
"subdivision": "Subdivision 2a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 4b extends the labor organization coverage election provisions to the correctional retirement plan for service with labor organizations.",
"modified": []
},
"citation": "352.029",
"subdivision": "Subdivision 2b"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 5 addresses contributions for employees covered by the general plan or correctional plan, including employer and employee contributions and potential employer payment by the labor organization.",
"modified": []
},
"citation": "352.029",
"subdivision": "Subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 5 adds limitations on salary for benefits and contributions within the general plan context, referencing 352.04 Subd. 2.",
"modified": []
},
"citation": "352.04",
"subdivision": "Subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 5 references 352.04 Subd. 3 related to contributions for the labor organization coverage amendments.",
"modified": []
},
"citation": "352.04",
"subdivision": "Subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 5 relies on 352.92 for the determination of retirement contributions related to labor organization coverage.",
"modified": []
},
"citation": "352.92",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 6a–6b modifies the application procedure for annuities and related monthly benefits under 352.115 Subd. 7a.",
"modified": []
},
"citation": "352.115",
"subdivision": "Subdivision 7a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 7 updates accrual procedures for annuities, including timing and eligibility considerations under 352.115 Subd. 8.",
"modified": []
},
"citation": "352.115",
"subdivision": "Subdivision 8"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 8 ensures monthly payment structure for annuities and related benefits under 352.115 Subd. 9.",
"modified": []
},
"citation": "352.115",
"subdivision": "Subdivision 9"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 9 establishes eligibility for deputy state fire marshal personnel electing special benefit coverage under subdivision 8 for retirement or disability benefits.",
"modified": []
},
"citation": "352.87",
"subdivision": "Subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 10 provides retirement annuity eligibility terms for deputy state fire marshal personnel under general plan rules.",
"modified": []
},
"citation": "352.87",
"subdivision": "Subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 11 adds a subdivision clarifying that employees of labor organizations continue to be covered by the correctional employees retirement plan.",
"modified": []
},
"citation": "352.905",
"subdivision": "Subdivision 8"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 12 adds a subdivision stating that certain laws do not apply to the correctional plan membership committee.",
"modified": []
},
"citation": "352.907",
"subdivision": "Subdivision 7"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 12 notes that meetings of the correctional plan membership committee are not subject to Minnesota Open Meeting Law (chapter 13D).",
"modified": []
},
"citation": "Chapter 13D",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 12 notes that the correctional plan membership committee is not subject to sections 15.0597 and 15.0599 for its operation.",
"modified": []
},
"citation": "15.0597",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 12 notes that the correctional plan membership committee is not subject to sections 15.0597 and 15.0599 for its operation.",
"modified": []
},
"citation": "15.0599",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 9 references the governor's salary as set under section 15A.082 for salary-based benefit calculations.",
"modified": []
},
"citation": "15A.082",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 6 references spousal acknowledgment required by 356.46 Subd. 3, paragraph b in the application for annuity processes.",
"modified": []
},
"citation": "356.46",
"subdivision": "Subdivision 3, paragraph b"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 6 references the applicable rate or rates for required contributions under 356.59 Subd. 2.",
"modified": []
},
"citation": "356.59",
"subdivision": "Subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references 352.75 in relation to the maximum covered salary calculation (in context with 15A.082).",
"modified": []
},
"citation": "352.75",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-reference to Minnesota Statutes Chapter 3A within the bill's scope of applicability.",
"modified": []
},
"citation": "Chapter 3A",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-reference to Minnesota Statutes Chapter 352B within the bill's scope of applicability.",
"modified": []
},
"citation": "Chapter 352B",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-reference to Minnesota Statutes Chapter 352D within the bill's scope of applicability.",
"modified": []
},
"citation": "Chapter 352D",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-reference to Minnesota Statutes Chapter 490 within the bill's scope of applicability.",
"modified": []
},
"citation": "Chapter 490",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Sec. 14 repeals Minnesota Statutes 2024 section 352.87 subdivision 8; the bill thus removes this provision.",
"modified": []
},
"citation": "352.87",
"subdivision": "Subdivision 8"
}
]Progress through the legislative process
In Committee