On May 15, 2024, Governor Walz signed the 2024 Omnibus Pensions and Retirement Bill (HF 5040 / SF 4643) into law. The bill includes several changes that affect MSRS pension plan members. Here is a summary of MSRS provisions in the pension bill.

Correctional Retirement Plan – Additional Positions Covered by Plan

The following Department of Human Services (DHS) positions may be covered under the Correctional Retirement Plan: Baker, cook, culinary supervisor, food service worker, food services supervisor and music therapist. The agency must certify that at least 75% of their time is spent working in direct contact with patients in the state-operated forensic services program or the Minnesota Sex Offender Program.

The employee may be eligible to elect a service credit transfer from the General Employees Retirement Plan to the Correctional Plan. Please contact MSRS for more information.

State Patrol Retirement Plan – Re-employment of Retiree

When a retired member of the State Patrol Retirement Plan returns to work in a covered position, their contributions to the pension plan will resume. After the member leaves re-employment, at their request, they will receive a refund of their contributions to the plan. The employer and supplemental contributions are not refunded to the member. Previously, an additional pension benefit was earned as a result of contributions during the re-employment period.

Other Administrative Changes

  • Vesting for disability and surviving spouse benefits is now three years for active employees. This is a correction from last session’s change to vesting.
     
  • A Correctional Plan Eligibility work group will meet during the interim between sessions to review positions included in the Correctional Retirement Plan and to determine a process to add additional plan members. MSRS staff will participate on this work group.
     
  • Reinstatement of the authority to allow past service credit purchases for H-1B visa holders who may have been missed during a federal compliance clean-up effort by the University of Minnesota in 2021. The University has three years to identify individuals missed during the 2021 review.
     
  • When a refund is requested on behalf of a dependent child, they are not eligible for a survivor benefit.

The entire summary of the 2024 Omnibus Pension Bill can be found here.

Session of the Minnesota Legislature will commence on January 14, 2025.