Purpose of the Bill

This legislative bill aims to modify and update the Minnesota State Retirement System (MSRS) for correctional state employees. It seeks to implement various recommendations from a workgroup focused on the MSRS Correctional Plan eligibility. The intention is to redefine which employment positions qualify for the correctional employees' retirement plan and establish new processes for making changes to plan coverage.

Main Provisions

• Eligibility Adjustment: The bill modifies the eligibility requirements for correctional state employees to join the retirement plan, updating the list of eligible employment positions and adding definitions to clarify the roles covered under the plan.
• Definitions and Policy Updates: New definitions are provided for terms such as "direct contact" and "eligible facility/prgram" to improve clarity. The policy emphasizes retirement benefits for correctional employees required to leave work due to mental or physical incapacity.
• Changes to Employment Position Titles: Procedures are established to handle changes in employment position titles and whether they affect eligibility for retirement plan coverage.
• Right to Appeal: Employees affected by decisions regarding their retirement plan eligibility have a right to appeal the decisions.
• Retirement Committee Formation: A new Correctional Plan Membership Committee will be created to oversee determinations on employment position titles and employee coverage under the retirement plan.
• Contributions and Membership Transfer: Details are provided for handling contribution responsibilities and transferring service credit between plans when positions or eligibility change.

Significant Changes to Existing Law

• Repeal of Previous Statutes: Several subdivisions from Minnesota Statutes 2024 section 352.91, which previously governed these retirement plan provisions, are repealed to make way for the new system.
• Direct Contact Requirements: The bill adds a requirement that some employment positions must have a certain percentage of direct contact with prisoners or patients to qualify for coverage under the retirement plan.
• Plan Coverage Errors: Procedures are outlined for correcting errors in retirement plan coverage when an employee is placed under the wrong plan.

Relevant Terms

• Correctional Employees Retirement Plan
• Direct Contact Requirement
• Eligible Facility/Program
• Correctional Plan Membership Committee
• Retirement Annuity
• Contribution Responsibilities
• Plan Coverage Errors
• Repeal of Statutes