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.) Under paragraph (c) of new subdivision 1a, for a person who is eligible to receive annuities from the MSRS General Plan and the MSRS Probation and Telecommunicator Subplan, the mixed service approach would allow a member to start receiving a retirement annuity from the MSRS Probation and Telecommunicator Subplan at age 60 and wait until the full retirement age of 66 to receive an unreduced retirement annuity from the MSRS General Plan, with both annuities being calculated using the member's highest average salary for 5 consecutive years during the entire service covered by the plans. Under paragraph (d) of new subdivision 1a, for a person who (1) transferred from the PERA General Plan to the PERA Probation and Telecommunicator Plan on January 1, 2027, and (2) is eligible to receive annuities from the PERA Probation and Telecommunicator Plan for allowable service earned under the PERA General Plan and the PERA Probation and Telecommunicator Plan, the mixed service approach would allow a member to start receiving a retirement annuity from the PERA Probation and Telecommunicator Plan at age 60 and wait until the full retirement age of 66 to receive an unreduced retirement annuity from the PERA General Plan, with both annuities being calculated using the member's highest average salary for 5 consecutive years during the entire service covered by the plans. Section 18 amends section 356.30, subdivision 3, by adding the PERA Probation and Telecommunicator Plan and the subplans of the MSRS General Plan to the list of covered plans to which section 356.30 applies. Sections 16-18 are effective January 1, 2027. Section 19 applies to all pension plans administered by MSRS, PERA, and TRA, and amends section 356.461, subdivision 1, which provides the investment return assumption to be used in computing joint and survivor annuities. A pension plan must use an investment return assumption of 6.5% unless a different percentage has been proposed by the plan's governing board and approved or deemed approved by the Commission under new paragraph (b) of subdivision 1. This is the same process followed to change other actuarial assumptions under Section 356.415, subdivision 18. Section 19 is effective July 1, 2026. Article 9: Minnesota Secure Choice Retirement Program Source: SF 4797 (Pappas)/HF 4921 (Nadeau), as amended by 26-07808-1A Article 9 amends statutes in Chapter 187, which governs the Minnesota Secure Choice Retirement Program (Program), a state -sponsored retirement program intended to benefit employees in the private sector who have no opportunity to save for retirement through an employer -sponsored retirement plan. The Program opened for enrollment of covered employers and covered employees in January 2026. Section 1 amends the definitions section for Chapter 187 to add a new definition for "annual report." The definition consolidates two annual reporting requirements in current law (section 187.08, subdivision 8, paragraphs (9) and (10)) into one requirement. Legislative Commission on Pensions and Retirement Page 15