Agenda - Council Work Session - 08/25/2026

Home

Bill Summary 2026 Pension and Retirement Omnibus Bill (Chapter 106; HF 4074, 3rd Engr.) Section 1 amends Section 11A.04, titled "Duties and Powers; Appropriation," to provide more precise language. Section 2 amends Section 11A.07, subdivision 4, to give the Executive Director the authority to adjust the administrative fee charged to a fund, based on the services provided to that fund, consistent with fiduciary requirements. Section 3 amends Section 11A.07, subdivision 5, which provides the procedures for invoicing the funds for which the SBI provides investment services against the assets under management for those funds. As amended, the procedures are as follows: 0 For any expense allocable to solely one fund or group of funds, that expense is allocated solely to that fund or group of funds. The remaining expenses are allocated proportionately to the funds, accounting for any adjustment made pursuant to Section 11A.07, subdivision 4 (as amended under Section 2, above), based on assets under management. With respect to the Combined Funds, the budgeted expenses are invoiced on or about the first day of the fiscal year and must be reconciled on at least an annual basis. Any deficit between the estimated expenses and actual expenses is due and payable upon reconciliation. Any surplus may be refunded or carried forward and credited to the next fiscal year's expenses. Section 4 strikes the fixed appropriation of $139,000 to the SBI for expenses associated with managing the General Fund assets. The changes to Article 4 will result in a revenue loss to the General Fund of approximately $782,000 per year, partially offset by the elimination of the direct appropriation in Section 4. Article 1 5: Administrative, Technical, and Conforming Changes Related to Volunteer and Paid On- Call Firefighters Source: LCPR Amendment S4276-3A Article 15 consists of twenty-six sections plus an effective date provision. Sections 1-11 and 13-25 remove outdated language and bring language in various statutes into conformity with the definitions and terms used in Chapters 424A, 353G, and other relevant chapters. Section 12 amends section 353G.18, subdivision 4, which provides the procedures for entities that wish to terminate participation in the Statewide Volunteer Firefighter Plan. Under current law, when a plan terminates participation, any surplus (assets in excess of liabilities) is allocated among active and deferred members (referred to using the defined term "departing firefighters"). The changes in Section 12 allocate surplus only to "active" departing firefighters. Allocating surplus only to active firefighters brings Section 353G.18 into conformity with Section 353G.19, which provides for the allocation of surplus only to active firefighters when a defined benefit plan converts to a defined contribution plan. Legislative Commission on Pensions and Retirement Page 22