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.) rate of 8%) and the resulting loss to the Subplan of this reduction in employee contributions is paid for with a onetime transfer from the general fund of $390,000 in fiscal year 2027. Employer Contribution Rate: 8.25%. Section 2, subdivision 5, paragraph (b), requires employers to make an "additional" employer contribution of 2% of pay. As noted above, Paragraph (c) adds that the contributions in paragraphs (a) and (b) are in addition to the contributions required by Section 352.04, which apply to the MSRS General Plan. Employer contributions for the General Plan are 6.25% of pay. • Past Service Credit Purchases: Section 2, subdivision 6, permits members to make a onetime purchase of credit for past service that will be used to calculate the member's retirement annuity under the new Subplan. The purchase may be made at any time up to the date payment of the retirement annuity begins. Subdivisions 6 and 7 provide procedures for requesting estimates, determining the purchase price, and making the purchase. Section 3 adds new section 352.881, titled "Subplan Coverage Changes," which creates new standing review committees in the Department of Corrections, Department of Public Safety, and Metropolitan Council. Members of each committee are to be appointed by the Commissioner of Corrections, the Commissioner of Public Safety, and the General Manager of Metro Transit, respectively. The committees will oversee changes to the titles of an employment position and approve or deny coverage by the new Subplan. An employee will have the right to appeal a committee determination. Sections 1, 4, and 5 make changes to current statutes to incorporate references to the MSRS Probation and Telecommunicator Retirement Subplan. Sections 1-5 are effective January 1, 2027. Section 6 consists of appropriations to the agencies that employ employees who will be participating in the new MSRS Probation and Telecom municator Retirement Subplan. The employers are required to contribute an additional 2% of pay to the new plan, and the appropriation to each agency funds the cost of the additional contributions. • Paragraph (a) appropriates $272,000 in fiscal year 2027 from the general fund to the commissioner of corrections. The base for this appropriation is $545,000 in each of fiscal years 2028 and 2029 • Paragraph (b) appropriates $14,000 in fiscal year 2027 from the general fund to the commissioner of public safety. The base for this appropriation is $29,000 in each of fiscal years 2028 and 2029. • Paragraph (c) appropriates $40,000 in fiscal year 2027 from the general fund to the Metropolitan Council. The base for this appropriation is $80,000 in each of fiscal years 2028 and 2029. • Paragraph (d) appropriates $7,000 in fiscal year 2027 from the trunk highway fund to the commissioner of public safety. The base for this appropriation is $14,000 in each of fiscal years 2028 and 2029 Legislative Commission on Pensions and Retirement Page 7