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.) Section 2 amends the definition of "covered employee" to include individuals described in section 187.05, subdivision 7, who are not employed by a covered employer but are permitted to participate in the Program. Section 3 amends the definition of "enrollment window" to add two windows, in addition to the window for enrolling employees when the employer is first required to join the Program. The two additional windows are the first 21 days of a covered employee's employment with a covered employer and the first 21 days of January after the year in which an employer first becomes a covered employer. Section 4 adds a definition for a new defined term, "waiting period," which is the 30-day period that begins on the day a covered employee is enrolled in the Program. Section 5 amends section 187.05, subdivision 1, to include references to individuals who are not employed by a covered employer but permitted to participate in the Program and make payments to the Program. Section 6 amends section 187.05, subdivision 1a, which allows employers to certify to the Program that the employer is not a covered employer, to replace the reference to filing a form with the executive director of the Program with a reference to filing a certification through the Program's online portal, by mail, or by email, with the consent of the executive director. Section 6 also adds a new paragraph to subdivision 1a to authorize the executive director to seek supporting documentation from an employer if needed to provide support for a certification. Section 7 amends section 187.05, subdivision 4, to require the board to provide notice to covered employees, in addition to covered employers as required under current law, of a change in the employee contribution rate or escalation schedule. Paragraph (b) in current law is deleted because it is included in a new subdivision to section 187.05, which is added by Section 9. Section 8 amends section 187.05, subdivision 7, to allow home and community -based services employees "twelve" months rather than "six" months to open an account in the Program. Section 9 amends section 187.05 to add new subdivision 9, which addresses covered employees' right to begin making contributions, change the rate of contributions, elect not to contribute, or cease contributing at least annually. These provisions are currently in section 187.05, subdivision 4, paragraph (b), but are deleted by Section 7. Section 10 amends section 187.06, subdivision 3, which requires opening an individual account for each covered employee, to include a reference to individuals who are not employed by a covered employer but permitted to participate in the Program and make payments to the Program. Section 11 amends section 187.07, subdivision 1, which directs covered employers to enroll employees and begin making payroll deduction contributions from paychecks. New language incorporates the requirements that covered employers enroll covered employees during the applicable enrollment period and begin withholding payroll deduction contributions from the first paycheck after a covered employee's waiting period. Section 11 also deletes: Legislative Commission on Pensions and Retirement Page 16