SF5308

Purpose

• Update Minnesota law to modify how retired police officers may be rehired and how their benefits interact with reemployment, while also addressing health insurance participation and how many retirees a city can hire as police officers.

Main Provisions

• Allowance of retirement annuity payments without reduction or suspension when a retired police officer is reemployed as a police officer under the public employees police and fire retirement plan.
• Authorization for continued participation in the statewide public employees insurance program (PEIP) during reemployment as a police officer.
• Establishment of limits on the number of retired police officers that a city may employ as police officers.
• Amendment to Minnesota Statutes 2024 section 353.37 by adding a new subdivision (Subd.7) titled “Applicability” for police officers, with an important exception noted below.
• Section 2.b defines “police officer” for the purposes of this subdivision as a person described as a police officer in section 353.64.

Applicability and Definitions

• Subd.7 (Applicability) states that the new provisions do not apply to the reemployment of a police officer who is already receiving an annuity or has applied to receive an annuity from the Public Employees Police and Fire Retirement Plan, and who, under section 353.658, returns to employment as a police officer covered by the plan.
• Section 2.b clarifies that “police officer” for this subdivision means an individual described as a police officer in Minnesota Statutes section 353.64.

Significant Changes to Existing Law

• Creates a new subdivision (Subd.7) in section 353.37 to govern when and how a retired police officer may be reemployed without losing or reducing retirement annuity benefits, including provisions about eligibility and exceptions.
• Enables continued PEIP health insurance participation during reemployment as a police officer.
• Introduces a cap or limit on the number of retired police officers a city can hire as police officers.
• Provides a formal definition of “police officer” for the purpose of these rules, tying it to section 353.64 and cross-referencing section 353.658 for reemployment scenarios.

Terminology Note

• The summary uses terms found in the bill text, such as retirement annuity, reemployment, police officer, public employees police and fire retirement plan, annuity, reduction, suspension, statewide public employees insurance program (PEIP), Minnesota Statutes 2024 section 353.37, subdivision (Subd.7), 353.64, and 353.658.

Relevant Terms - retirement annuity - reemployment - police officer - public employees police and fire retirement plan - annuity - reduction - suspension - statewide public employees insurance program (PEIP) - Minnesota Statutes 2024 - section 353.37 - Subd.7 - applicability - section 353.64 - section 353.658