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MinnesotaHF 407494th Legislature, 2025-2026HouseWALLET

Retirement policy bill.

Sponsored By: Leon Lillie (Democratic)

Became Law

State Government Finance and PolicyRules and Administration for comparison with SF4276

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

Special pension coverage for fire investigators

Beginning July 1, 2026, covered deputy state fire marshals and fire/arson investigators get special retirement or disability benefits. They must belong to Minnesota’s general state employees retirement plan. The new coverage rule applies to those first hired in covered jobs on or after July 1, 2026. Earlier hires qualify through elections under the law in effect when they were first employed. The specified retirement annuity requires age 55 or older.

Retroactive investigator pensions require back payments

The law gives certain general-plan members a one-time choice of special pension coverage back to their first day of employment. They must have started as deputy state fire marshals or fire/arson investigators in the State Fire Marshal Division after July 31, 2021, and before October 5, 2022. They must file notice with the retirement system’s executive director within 60 days after enactment; missing that deadline waives coverage. The choice cannot be undone during covered employment. The retirement system must calculate missed contributions plus interest and notify the employee and Department of Public Safety within 30 days of the election or request. Employees must pay their share plus interest in one lump sum by six months after filing or leaving the covered job, whichever comes first. The department must pay its share plus interest within 30 days after the retirement system certifies the employee’s payment.

New filing deadlines for state pensions

Beginning July 1, 2026, state pension applicants can file no more than 60 days before their chosen annuity start date. Benefits cannot build up more than 180 days before filing, before the day after state service ends, or before age and service requirements are met. Applications for covered retirement benefits, refunds, disability benefits, survivor benefits, and death benefits take effect when an original paper application reaches the retirement system or an authorized person. The original must be delivered in person or mailed to a system office; fax and electronic copies do not count. Required supporting papers, including birth, marriage or divorce records and any required spouse acknowledgment, must arrive within 60 days after filing.

Union service pensions come with costs

Beginning July 1, 2026, eligible state employees can elect retirement coverage while on leave for labor-organization service. Correctional-plan members can keep that coverage during unpaid leave as employees or officers of a union that exclusively represents state employees. A written election must reach the executive director within 90 days after union employment or the first qualifying leave starts, whichever is later. Employees owe both contribution shares, with their employee share deducted from salary; the union may pay the employer share. Contributions and benefits use the lower of the employee’s covered salary or 75% of the governor’s salary, including correctional-plan supplemental employer contributions.

Rules for changing state pension checks

Beginning July 1, 2026, general state employee pensions and disability benefits remain payable in equal monthly installments. Benefits can be raised, lowered, or ended only when Minnesota Statutes chapter 352 or chapter 356 authorizes the change. The law adds chapter 356 as a recognized source of that authority. It does not set a new benefit amount or adjustment formula.

Sponsors & Cosponsors

Sponsor

  • Leon Lillie

    Democratic • House

Cosponsors

  • Frentz

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 214 • No: 53

Senate vote • 5/15/2026

Third Reading

Yes: 57 • No: 9

Senate vote • 5/15/2026

Amendment: Rasmusson (A50) amendment

Yes: 28 • No: 39

House vote • 5/13/2026

Passage, as amended

Yes: 129 • No: 5

Actions Timeline

  1. Secretary of State Chapter 106

    5/19/2026Senate

  2. Governor's action Approval

    5/19/2026Senate

  3. Presentment date

    5/16/2026Senate

  4. Presented to Governor

    5/16/2026House

  5. Returned from Senate

    5/16/2026House

  6. Third reading Passed vote: 57-9

    5/15/2026Senate

  7. Special Order

    5/15/2026Senate

  8. Second reading

    5/14/2026Senate

  9. Comm report: Subst. for SF on General Orders SF4276

    5/14/2026Senate

  10. Referred to Rules and Administration for comparison with SF4276, now on General Orders

    5/13/2026Senate

  11. Introduction and first reading

    5/13/2026Senate

  12. Received from House

    5/13/2026Senate

  13. Bill was passed as amended vote: 129-5

    5/13/2026House

  14. Third reading as amended

    5/13/2026House

  15. Amendeda

    5/13/2026House

  16. House rule 1.21, placed on Calendar for the Day Wednesday, May 13, 2026

    5/12/2026House

  17. Second reading

    5/11/2026House

  18. Committee report, to adopt as amendeda

    5/11/2026House

  19. Committee report, to adopt as amended and re-refer to Ways and Meansa

    4/20/2026House

  20. Introduction and first reading, referred to State Government Finance and Policy

    3/9/2026House

Bill Text

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