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HF3256 (Legislative Session 94 (2025-2026))

Public employees police and fire retirement plan; reemployment earnings limit applicable to disability benefit payments increased.

Related bill: SF356

AI Generated Summary

Purpose of the Bill

The purpose of the bill is to amend existing laws governing the retirement benefits for public employees in Minnesota, specifically focusing on the police and fire retirement plan. It aims to increase the earnings limit for reemployed individuals receiving disability benefit payments.

Main Provisions

  • The bill modifies the rules regarding the earnings limits for disability benefit recipients who return to work.
  • It introduces different approaches for members depending on whether they began receiving disability payments before or after July 1, 2023.
  • The bill increases the earnings limit to 150% of the base monthly salary from the previous 125%.
  • It details the conditions under which disability benefits are reduced if a recipient gains new employment.

Significant Changes to Existing Law

  • Reemployment Earnings Limit: The bill raises the allowable earnings limit before disability benefits are reduced, from 125% to 150% of the base monthly salary that a member was earning before their disability.
  • Reduction Calculations: For members who began disability benefits before July 1, 2023, any income from reemployment, combined with disability and workers’ compensation benefits, that exceeds the new limit results in a reduction of disability benefits by set formulas.
  • Adjustment for Duty and Regular Disability Benefits: Specific reduction formulas are introduced based on years of service for those who started receiving benefits on or after July 1, 2023.

Relevant Terms

  • Police and fire retirement plan
  • Disability benefits
  • Reemployment earnings limit
  • Workers' compensation
  • Base monthly salary
  • Total and permanent disability

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 27, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy
April 27, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Increases the reemployment earnings limit from 125% to 150% of base monthly salary."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends the reemployment earnings limit applicable to disability benefit payments under section 353.656 subdivision 4.",
      "modified": [
        "Applies different rules for those beginning disability payments before and after July 1, 2023."
      ]
    },
    "citation": "353.656",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the reapplication requirements for disability payments under section 353.031 subdivision 8.",
      "modified": [
        "Clarifies time frames and conditions under which reapplication for disability benefits is required."
      ]
    },
    "citation": "353.031",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the definitions applicable to salary impairments under section 353.64 subdivision 10.",
      "modified": [
        "Refines the circumstances under which salary is considered impaired during disability."
      ]
    },
    "citation": "353.64",
    "subdivision": "subdivision 10"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies calculations involving employee contribution rates under section 353.65 subdivision 2.",
      "modified": [
        "Updates calculations for the employee contribution rate affecting disability benefit reductions."
      ]
    },
    "citation": "353.65",
    "subdivision": "subdivision 2"
  }
]

Sponsors