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.) Sections 9, 10, and 14 amend section 352.87, which is the statute that governs the special coverage for employees of the State Fire Marshal Division. Section 9 amends subdivision 1 to revise how a deputy state fire marshal, fire/arson investigator, becomes covered by the fire marshal subplan. Instead of employees electing into the special coverage, the changes in this section will mean that fire marshals will be covered by the special coverage unless they were first employed before July 1, 2026, and elected not to be covered. 0 Section 10 clarifies language in section 352.87, subdivision 2. Section 14 repeals subdivision 8, which describes the process for electing coverage by the fire marshal subplan and making retroactive salary deduction contributions that must be made for retroactive coverage starting with the employee's employment date. Because Section 9 removes the ability to elect coverage going forward and coverage will be the default, subdivision 8 will not be applicable as of July 1, 2026. Section 11 amends section 352.905 by adding new subdivision 8 to the eligibility section for the MSRS Correctional Plan to clarify that members who take leave to provide service as an employee or officer of a labor organization representing state employees will continue to be covered by the Correctional Plan. Section 12 amends section 352.907, a new provision enacted in 2025 that establishes a committee to review changes to coverage under the MSRS Correctional Plan. Section 12 amends section 352.907 to note that meetings of the correctional plan membership committee are not subject to chapter 13D, which are the state's open meeting laws. Section 12 also states that the correctional plan membership committee is not an agency for the purposes of sections 15.0597 and 15.0599, which require agencies to report to the Secretary of State and follow certain appointment procedures. Section 13 is a session law that consists of four subdivisions. This session law is "special legislation" that allows two deputy state fire marshals who missed the election for special coverage for fire marshals to make the election and pay the missed employee contributions, plus interest. The employer must then pay the missed employer contributions plus interest. All sections are effective July 1, 2026. Article 2: Public Employees Retirement Association (PERA) Source: SF 4721 (Frentz)1HF 4514 (Lillie) LCPR Amendment S4276-14A Sections 1 and 4 amend statutes governing the Public Employees Police and Fire Plan (Police & Fire Plan) administered by PERA. Section 1 provides funding in the form of direct state aid to the Police & Fire Plan to fund the cost of reducing the postretirement adjustment (COLA) delay in Section 4. Section 1 amends section 353.65, subdivision 3b, to add a new direct state aid to the Police & Fire Plan in the amount of $8,000,000 by October 1, 2026, and each October 1 thereafter. Under new paragraph (g), the aid expires on July 1, 2042. Legislative Commission on Pensions and Retirement Page 3