Agenda - Council Work Session - 08/25/2026

Home

Bill Summary 2026 Pension and Retirement Omnibus Bill (Chapter 106; HF 4074, 3rd Engr.) earliest date on which the retirement benefit would have been payable, which is relevant to the present value calculation. • Section 13 amends section 42413.22, subdivision 7, by adding language that defines "surplus" and deleting references to "present value" so that any surplus will be allocated in the ratio of each firefighter's accrued benefit to the total of all firefighters' accrued benefits. Section 13 also adds a sentence to direct that if a retirement benefit is payable as a monthly pension, the relief association must allocate surplus by calculating the lump -sum present value of the monthly pension. Section 14 amends section 42413.22, subdivision 8, to clarify language regarding distributions upon termination of the retirement plan. • Section 15 amends section 42413.22, subdivision 9, by deleting unnecessary definitions for "retirement benefit" and "individual retirement account." Section 15 also rewrites a paragraph of the subdivision to account for nonresponsive participants, as well as missing participants. Upon a plan's termination, all assets must be distributed. If a firefighter cannot be located or will not respond to requests to elect a direct payment or rollover or, in the case of monthly pensions, a lump sum or annuity, paragraph (b) directs the board of trustees to either transfer the benefit to an IRA in the name of the participant or to escheat the benefit to the state. Lastly, Section 15 adds paragraph (c), which provides guidance on handling a monthly pension when a participant is missing or nonresponsive. Sections 12-15 are effective the day following final enactment. Sections 16-18 are session laws that apply to the termination of the participation of the Maple Plain fire department in the Statewide Volunteer Firefighter Plan. • Section 16, paragraph (a), requires PERA to transfer assets, liabilities, and records from the Statewide Volunteer Firefighter Plan to the Maple Plain Fire Relief Association no later than 60 days after the section's effective date of "the day following final enactment." Section 16 also eliminates many requirements under section 353G.17 to reduce administrative burden when the Maple Plain fire department terminates participation in the Statewide Plan. • Section 17 states that after the transfer, the Maple Plain Fire Relief Association must make distributions in accordance with section 42413.22 and subsequently terminate and dissolve the relief association in accordance with Minnesota law. Section 18 applies to supplemental benefits, which are payments made to firefighters when they receive a distribution from a relief association plan or the Statewide Volunteer Firefighter Plan to help the recipient pay income tax on the distribution. Section 18, paragraph (a), gives the city of Maple Plain authority, but not the obligation, to make supplemental payments and seek reimbursement from the commissioner of revenue. If the city makes the supplemental payments, the Maple Plain Fire Relief Association is relieved of that requirement, under Section 18, paragraph (b). Sections 16-18 are effective the day following final enactment. Legislative Commission on Pensions and Retirement Page 12