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 4: Probation and Telecommunicator Retirement Subplan of the MSRS General State Employees Retirement Plan Source: LCPR Amendment S4276-12A Senate Amendment SCS4276A-3/House Amendment H4074A8 Section 2 establishes the Probation and Telecommunicator Retirement Subplan to be administered by MSRS by adding new section 352.88, titled "Probation Officers and Public Safety Telecom municators," and new section 352.881, titled "Subplan coverage Changes," to Chapter 352. A current member of the MSRS General Plan who is transferred to the new Subplan on January 1, 2027, will receive a retirement annuity calculated under the MSRS General Plan provisions, accrued through December 31, 2026, and unreduced at age 66, and a retirement annuity calculated under the new Subplan provisions, beginning with service on January 1, 2027, and unreduced at age 60. Key features of the MSRS Probation and Telecommunicator Subplan are the following: • Eligibility: Employees who meet the definition of either "probation officer" or "public safety telecommunicator" are required to participate in the Subplan. Any eligible employee who is currently a member of the MSRS General Plan will be transferred to the Subplan on January 1, 2027, except employees who are age 60 or older with three years of service in the MSRS General Plan on January 1, 2027. See Section 2, subdivision 3. • "Probation officer" is defined in Section 2, subdivision 2, paragraph (i), as a state employee of the Department of Corrections in one of the 7 listed employment positions or whose job duties are certified by the DOC as satisfying the definition. • "Public safety telecommunicator" is defined in Section 2, subdivision 2, paragraph (j), as a state employee of the Department of Public Safety or Metropolitan Council in one of the 4 listed employment positions or whose job duties are certified by the applicable agency as satisfying the definition. • Vesting: 3 years. See Section 2, subdivision 2, paragraph (k). • Normal Retirement Age: 60. See Section 2, subdivision 2, paragraph (f). • Early Retirement Age: 55. See Section 2, subdivision 4, paragraph (b). • Benefit Formula Multiplier: 1.9%. See Section 2, subdivision 4, paragraph (a). • COLA: 1.75%. The bill does not state a post -retirement adjustment specifically for the Subplan, but, because the Subplan is part of the MSRS General Plan, any feature not changed by new Section 352.88 or 352.881 is the same as that feature under the General Plan. Section 356.415, subdivision 1, provides a COLA of 1.75% for the MSRS General Plan. • Employee Contribution Rate: 8.71%. Section 2, subdivision 5, paragraph (a), requires members to make an "additional" employee contribution of 2.71% of pay. Paragraph (c) adds that the contributions in paragraphs (a) and (b) (explained below) are in addition to the contributions required by Section 352.04, which apply to the MSRS General Plan. Employee contributions for the General Plan are 6% of pay. Note that later in the Chapter, in Article 6, the additional employee contribution is reduced from 2.71% to 2% for the first 20 months of the Subplan (resulting in a total employee contribution Legislative Commission on Pensions and Retirement Page 6