Agenda - Council Work Session - 08/25/2026

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Bill Summary 2026 Pension and Retirement Omnibus Bill (Chapter 106; HF 4074, 3rd Engr.) Article- by- Article Summary Article 1: Minnesota State Retirement System (MSRS) Source: SF 4276 (Frentz)1HF 4074 (Lillie) Article 1 amends statutes governing the pension plans administered by MSRS. Section 1 amends section 352.021, subdivision 2, to clarify that a state employee is covered by the MSRS General State Employees Retirement Plan (MSRS General Plan) unless the state employee is covered by the MSRS Correctional Employees Retirement Plan (MSRS Correctional Plan) under section 352.905. Section 1 also clarifies that salary deductions are credited to the state employee's account in the fund of the plan that provides retirement coverage. Sections 2 to 5 amend section 352.029, which governs coverage by MSRS for employees of labor organizations to treat MSRS Correctional Plan members the same as MSRS General Plan members. Section 2 amends subdivision 1 to clarify that paragraph (a) allows state employees covered by the MSRS General Plan to elect coverage by the MSRS General Plan while on a leave of absence without pay to provide service as an employee or officer of a labor organization representing state employees. Section 2 adds new paragraph (b), which states that a state employee covered by the MSRS Correctional Plan who is on a leave of absence to provide service to a labor organization may elect to be covered by the MSRS Correctional Plan. • Section 3 amends subdivision 2 to reference both the MSRS General Plan and the MSRS Correctional Plan in describing the process to elect coverage by the applicable plan. • Section 4 amends subdivision 2a by inserting a reference to section 352.92, which is the section that sets out the required contributions, including the supplemental employer contributions, to the MSRS Correctional Plan. Section 4 also makes technical and conforming changes. • Section 5 amends subdivision 3 to reference both employees covered by the MSRS General Plan and employees covered by the MSRS Correctional Plan in describing the contributions required and who pays those contributions. Section 6 amends section 352.115, subdivision 7a, which describes the application procedure for a person applying for an annuity, refund, or disability, survivor, or death benefit from any of the MSRS- administered pension and retirement plans. Section 6 updates the procedure so that filing an application is effective on the date the original application is received by MSRS, but to complete the application, supporting documents must be received by MSRS no later than 60 days after filing. Section 7 amends section 352.115, subdivision 8, by breaking up the large subdivision into four paragraphs and clarifying the language. Section 8 amends section 352.115, subdivision 9, to include a reference to Chapter 356. Chapter 356 includes sections that may result in the revocation of a benefit in certain circumstances. Legislative Commission on Pensions and Retirement Page 2