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Bill Summary 2026 Pension and Retirement Omnibus Bill (Chapter 106; HF 4074, 3rd Engr.)
<br />Article 8: All Public Pension Plans
<br />Source: SF 4373 (Frentz), as amended by S4373-1A
<br />SF 4588 (Frentz)/HF 4517 (Lillie)
<br />HF 4162 (O'Driscoll), as amended by H4162-DE1
<br />LCPR Amendment S4276-12A
<br />Sections 1, 2, 4, 5, 7-9, and 11-13 apply to the pension plans administered by MSRS (except the State
<br />Patrol, Judges, and Legislators Plans), PERA, and TRA, and require the employer of a reemployed
<br />annuitant to make employer contributions to the applicable pension plan.
<br />• Sections 1 and 2 amend section 43A.346, which applies to a terminated state employee who
<br />accepts a postretirement option (PRO) position.
<br />• Section 4 amends section 352.115, subdivision 10, and applies to annuitants who are reemployed
<br />in positions covered by the MSRS General Plan or the MSRS Correctional Plan.
<br />• Section 5 amends section 352.1155, subdivision 3, which applies to a person who was a member
<br />of the MSRS General Plan and an employee of Minnesota State Colleges and Universities (MN
<br />State), and who returns to work for MN State under section 352.1155.
<br />• Section 7 amends section 353.37, subdivision 5, and applies to annuitants who are reemployed in
<br />positions covered by the PERA General Plan, PERA Correctional Plan, or PERA Police and Fire
<br />Plan.
<br />• Sections 8 and 9 amend section 353.371, which applies to terminated members of the PERA
<br />General Plan who enter into a phased retirement agreement to continue employment.
<br />• Section 11 amends section 354.44, subdivision 5, which applies to a member of TRA who
<br />resumes teaching service after retirement.
<br />• Section 12 amends section 354.444, subdivision 5, which applies to a member of TRA who enters
<br />into a return -to -work agreement.
<br />• Section 13 amends section 354.445, which applies to a person who was a member of TRA and an
<br />employee of MN State, and who returns to work for MN State under section 354.445. Section 13
<br />also clarifies that employee contributions are not required during the reemployment period.
<br />Sections 1, 2, 4, and 5 are effective on the first day of the payroll period beginning on or after January 1,
<br />2027. Sections 7-9 are effective January 1, 2027. Sections 11-13 are effective on the first day of the
<br />payroll period beginning on or after July 1, 2026.
<br />Sections 3, 6, 10, 14, and 15 amend the definition of "salary" for the plans administered by MSRS, PERA,
<br />TRA, and St. Paul Teachers, to exclude payments made to members who take leave under the Minnesota
<br />Paid Leave program that took effect on January 1, 2026. The definition is amended to state that "salary"
<br />does not include "payments from the family and medical benefit insurance account for Minnesota paid
<br />leave under chapter 268B."
<br />• In addition to the salary definition change, Section 6 amends section 353.01, subdivision 10,
<br />governing PERA, to strike language and simplify when compensation paid during an authorized
<br />Legislative Commission on Pensions and Retirement Page 13
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