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.) the service pension calculation for firefighters who return to active service after a break in service and have previously been paid a service pension or disability benefit. Section 7 removes the condition that a firefighter must meet the minimum resumption service requirements if a firefighter returns to active firefighter service after being paid a pension or disability benefit from the relief association. Instead, a relief association may define vesting requirements in its bylaws solely for former firefighters who have been paid a pension or disability benefit and return to active relief association membership. 0 Section 9 amends 424A.016, subdivision 4, to fix a cross-reference. 0 Section 19 repeals section 424A.01, subdivision 6. Sections 7, 9, and 19 are effective January 1, 2027. Section 8 amends section 424A.014, subdivision 1, to increase the threshold at which an annual financial report and audited financial statements are required from $750,000 to $1,000,000. If the $1,000,000 threshold is exceeded, the relief association must file an annual financial report and audited financial statements with the State Auditor in the calendar year following the year in which the threshold was exceeded. Section 8 is effective December 31, 2026, and applies to audited financial statements for calendar year 2026 and thereafter. A relief association that does not have special fund assets or special fund liabilities that exceed $1,000,000 on December 31, 2026, is not required to submit audited financial statements under section 424A.014, subdivision 1, unless and until the association's special fund assets or special fund liabilities exceed $1,000,000, even if audited financial statements were required immediately prior to the effective date. Section 10 amends section 424A.016, subdivision 6, to delete the obsolete term "interest" from the provision that explains how investment performance on a deferred pension must be allocated. Section 10 is effective the day following final enactment. Section 11 amends section 424A.05, subdivision 3, which specifies the purposes for which disbursements from the special fund may be made, to add the purchase of an annuity that replaces a monthly benefit service pension. Section 11 is effective the day following final enactment. Sections 12-15 revise section 42413.22, which sets forth the procedures a relief association must follow to terminate the retirement plan it administers. Section 12 amends section 42413.22, subdivision 5, by deleting references to "present value." When the board of trustees determines each firefighter's benefit, the board may, but is not required to, determine the present value of the benefit. The language in subdivision 5, as revised by Section 12, requires the board of trustees to determine "each participant's accrued benefit." Additionally, Section 12 deletes the requirement that the board of trustees take into account the Legislative Commission on Pensions and Retirement Page 11