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.) Section 45 adds a new subdivision 1h to section 356.415, which will provide a COLA for members of the new Plan. Sections 1-25, 36-44, and 46-51 make changes to current statutes to incorporate references to the Local Government Probation and Telecom municator Retirement Plan or to a section in new Chapter 353H. Section 52 is a session law that requires the transfer of assets of the PERA General Plan attributable to members who are transferred from the General Plan to the PERA Probation and Telecommunicator Plan from the General Plan to the new Plan by January 16, 2027. The PERA executive director is required to direct PERA's actuary to calculate the amount to be transferred in accordance with an appendix to the Standard for Actuarial Work. The appendix, labeled "Appendix C," was adopted by the Commission at its last meeting of the 2026 legislative session on May 5, 2026. Note that a new subdivision 1a added to Section 356.30 applies to the new MSRS Subplan and the PERA Probation and Telecommunicator Plan and allows for combined service annuities from the new Subplan or Plan and the related general plan without having to comply with the requirement that the annuities begin within a 12-month period. This variation of combined service annuities is sometimes referred to as "mixed service" annuities. The new subdivision is added by Article 8, Section 17, which is described later in this Summary. Sections 1 to 44 and Sections 46 to 52 are effective January 1, 2027. Section 45 is effective for postretirement adjustments beginning on or after January 1, 2027. Article 6: Probation and Telecommunicator Plans; Transfers from the General Fund; Temporary Reduction in Employee Contribution Rates Source: LCPR Amendment S4276-17A Article 6 is a session law consisting of two sections: Section 1 transfers money from the general fund to the PERA local government probation and telecommunicator retirement fund and the MSRS general state employees retirement fund to reimburse the funds for the loss of employee contributions due to the reduction in the employee contribution rates under Section 2 for the first 20 months of the plans. • Subdivision 1 requires a onetime transfer to the local government probation and telecommunicator retirement fund in the amount of $2,610,000, no later than January 15, 2027. Subdivision 2 requires a onetime transfer to the general state employees retirement fund for the benefit of probation officers and public safety telecommunicators covered by the new MSRS Subplan in the amount of $390,000, no later than January 15, 2027. Section 2 reduces the employee contribution rates for members of the new MSRS Subplan and the PERA probation and telecommunicator plan for the first 20 months, through August 2028. Legislative Commission on Pensions and Retirement Page 9