SF 4499

03/03/26  REVISOR  TW/NS  26-07449  as introduced
  SENATE
  STATE OF MINNESOTA
  NINETY-FOURTH SESSION  S.F. No. 4499
  (SENATE AUTHORS: SEEBERGER)
  DATE       D-PG  OFFICIAL STATUS
  03/17/2026      6745 Introduction and first reading
  Referred to State and Local Government
1.1A bill for an act
1.2relating to retirement; public employees police and fire retirement plan; authorizing
1.3payment of a retirement annuity without reduction or suspension upon
1.4reemployment; amending Minnesota Statutes 2024, section 353.37, subdivisions
1.51, 5, by adding a subdivision; proposing coding for new law in Minnesota Statutes,
1.6chapter 353.
1.7    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8Section 1. Minnesota Statutes 2024, section 353.37, subdivision 1, is amended to read:
1.9Subdivision 1. Salary maximums. (a) If a member who is receiving an annuity from a
1.10   retirement plan administered by the association, other than the public employees police and
1.11   fire retirement plan, is employed by (1) a governmental employer in a nonelected position
1.12   not required by law to be covered by a plan administered by the Minnesota State Retirement
1.13   System, the Teachers Retirement Association, or the St. Paul Teachers Retirement Fund
1.14   Association, or (2) by a labor organization that represents public employees who are
1.15   association members under this chapter, and the member's salary exceeds the annual
1.16   maximum salary defined in paragraph (b), the annuity shall be suspended under subdivision
1.17   2 or reduced under subdivision 3, whichever results in the higher annuity amount.
1.18(b) The annual maximum salary means the annual maximum earnings allowable at the
1.19   member's age for the continued receipt of full benefit amounts monthly under the federal
1.20   Old Age, Survivors and Disability Insurance Program as set by the secretary of health and
1.21   human services under United States Code, title 42, section 403, in effect for the calendar
1.22   year. If the member has not yet reached the minimum age for the receipt of Social Security
1.23   benefits, the maximum salary means the annual maximum earnings allowable for the
1.24   minimum age for the receipt of Social Security benefits.
Section 1.  1
 03/03/26  REVISOR  TW/NS  26-07449  as introduced
2.1      (c) The provisions of paragraph (a) do not apply to the members of the general employees
2.2  plan of the Public Employees Retirement Association who were former members of MERF.
2.3    Sec. 2. Minnesota Statutes 2024, section 353.37, subdivision 5, is amended to read:
2.4      Subd. 5. Effect on annuity. Except as provided under this section, public service
2.5  performed by an annuitant described in subdivision 1, paragraph (a), subsequent to retirement
2.6  from the general employees retirement plan, the public employees police and fire retirement
2.7  plan, or the local government correctional employees retirement plan does not increase or
2.8  decrease the amount of an annuity. The annuitant shall not make any further contributions
2.9  to a defined benefit plan administered by the association by reason of this subsequent public
2.10 service.
2.11   Sec. 3. Minnesota Statutes 2024, section 353.37, is amended by adding a subdivision to
2.12 read:
2.13     Subd. 7. Not applicable to the public employees police and fire retirement plan. (a)
2.14 This section does not apply to the reemployment of a member of the public employees
2.15 police and fire retirement plan.
2.16     (b) Section 353.653 applies to the reemployment of a member receiving an annuity or
2.17 who has applied to receive an annuity from the public employees police and fire retirement
2.18 plan and who returns to employment covered by the public employees police and fire
2.19 retirement plan or the general employees retirement plan.
2.20   Sec. 4. [353.653] REEMPLOYMENT.
2.21     Subdivision 1. Return to employment. (a) A member of the public employees police
2.22 and fire retirement plan who has separated from service and is receiving or has applied to
2.23 receive an annuity under section 353.651 may return to employment in a position covered
2.24 by the public employees police and fire retirement plan or the general employees retirement
2.25 plan as early as the 31st day after separation from service.
2.26     (b) The executive director must seek repayment of any annuity payments made to a
2.27 member who returns to employment before the earliest day under paragraph (a). The
2.28 executive director may waive the repayment requirement if the member's failure to comply
2.29 with paragraph (a) was inadvertent or due to no fault of the member.
2.30     Subd. 2. Effect on annuity. (a) A member's return to employment under subdivision 1
2.31 does not impact the member's continued receipt of an annuity or commencement of annuity
2.32 payments.
 Sec. 4.  2
03/03/26  REVISOR  TW/NS  26-07449  as introduced
3.1     (b) During the period of reemployment:
3.2     (1) the amount of the annuity must not increase or decrease as a result of the
3.3 reemployment; and
3.4     (2) neither the member nor the member's employer may make contributions as required
3.5 under section 353.65 during the period of reemployment.
3.6   Sec. 5. EFFECTIVE DATE.
3.7     Sections 1 to 4 are effective the day following final enactment.
Sec. 5.  3