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Bill Summary 2026 Pension and Retirement Omnibus Bill (Chapter 106; HF 4074, 3rd Engr.) <br />leave of absence will be considered part of the member's salary. Section 6 also removes a <br />reference to section 353.86, which was repealed in 2024. <br />In addition to the salary definition change, Section 15 amends section 354A.095, governing St. <br />Paul Teachers, to clarify that a member who is on an authorized parental or maternity leave can <br />purchase service credit for that period of leave. These changes allow a member to purchase <br />service credit for leave taken under the Minnesota Paid Leave program. <br />Sections 3, 10, 14, and 15 are effective retroactively from January 1, 2026. All the changes in Section 6 <br />are effective July 1, 2026, except the amendment to section 353.01, subdivision 10, paragraph (b), <br />clause (7), which is effective retroactively from January 1, 2026. <br />Sections 16-18 establish a mixed service approach for calculating annuities for members of certain <br />pension plans. <br />Section 16 amends section 356.30, subdivision 1, which describes the eligibility requirements for <br />combined service annuities and the changes to determining retirement annuities under more <br />than one pension plan when computed using Section 356.30. Section 16 adds a reference to new <br />subdivision 1a, which is added by Section 17, to permit retirement annuities to be calculated <br />under new subdivision 1a, rather than under subdivision 1. <br />• Section 17 adds subdivision 1a to section 356.30, which permits retirement annuities from more <br />than one plan to be calculated using the "mixed service" approach. This approach generally <br />allows for the annuities to begin as elected by the member and not within a 12-month period. <br />Members in the following plans or subplans will be able to use the mixed service provision when <br />applying for their retirement annuities: <br />o MSRS General Plan; <br />o MSRS Correctional Plan; <br />o MSRS subplans under Section 352.85 through 352.87, which provide enhanced benefits <br />for military affairs personnel, transportation department pilots, deputy state fire marshal <br />fire/arson investigators, and under the new MSRS Subplan for probation officers and <br />telecommunicators; <br />o PERA Local Government Probation and Telecommunicator retirement plan, but only if the <br />member was transferred from the PERA General Plan to the new PERA Plan on January 1, <br />2027. <br />MSRS has been allowing members to use the mixed service approach from the MSRS plans for <br />years under an interpretation of current statutes. <br />Under paragraph (b) of new subdivision 1a, for a person who is eligible to receive annuities from <br />the MSRS General Plan and the MSRS Correctional Plan, the mixed service approach would allow <br />a member to start receiving a retirement annuity from the MSRS Correctional Plan at age 55 and <br />wait until the full retirement age of 66 to receive an unreduced retirement annuity from the <br />MSRS General Plan, with both annuities being calculated using the member's highest average <br />salary for 5 consecutive years during the entire service covered by the plans. <br />Legislative Commission on Pensions and Retirement Page 14 <br />