SF4230 (Legislative Session 94 (2025-2026))
Legislators permission to elect coverage by the general state employees retirement plan
Related bill: HF3449
AI Generated Summary
Purpose
This bill changes how certain Minnesota state employees are covered by retirement plans. It expands who is considered a state employee under the Minnesota State Retirement System’s unclassified program and adds a pathway for some employees (including legislators) to transfer to the general state employees retirement plan. The goal is to allow more workers to participate in the unclassified or general retirement plans and to set clear rules for transferring between plans.
Main Provisions
Expanded eligibility for the unclassified program (Sec. 1)
- Adds many categories of state employees to the list of “Included employees” in the unclassified program. Examples include:
- Employees of the Minnesota Historical Society, Minnesota Horticultural Society, Minnesota Crop Improvement Association
- Adjutant General employees paid with federal funds and not under a federal retirement system
- Employees of Minnesota State Colleges and Universities in certain programs
- Temporary session or special-service legislative employees and legislators without a fixed term
- Trainees in full-time training programs
- Employees of the Minnesota Safety Council
- Certain transit division employees on authorized leave
- Employees of the Metropolitan Council and several related commissions (with some exclusions)
- Judges of the Tax Court
- Certain University of Minnesota heating plant employees (under specific conditions)
- Seasonal employees, peace officers in the Commerce Fraud Bureau with a retirement age, and other named groups (e.g., Conservation Corps Minnesota, Perpich Center for Arts Education)
- Members of the legislature who choose to be covered by the general plan instead of the unclassified program
- Where applicable, employee contributions must be deducted from salary, and employer contributions are noted as the employer’s obligation in certain contexts (e.g., heating plant operations).
Coverage and participation rules (Sec. 2)
- Section 352D.02 Subdivision 1 is amended to state that the enumerated employees are participants in the unclassified program if they are eligible for coverage under the general state employees retirement plan under chapter 352, unless they elect otherwise.
- Some categories are described as participants in the unclassified program unless they have a different election option (e.g., different coverage under other plans).
Transfer to the general state employees retirement plan (Sec. 3)
- Allows a person in the unclassified program (and certain listed groups) to elect to terminate participation in the unclassified program and move to the general state employees retirement plan, under specific conditions:
- If their current work began before July 1, 2010 and they have at least 10 years of covered employment, or
- If their current work began after June 30, 2010 and they have no more than seven years of allowable service in the unclassified program, or
- If the person is a member of the legislature
- The election must be in writing on a form provided by the executive director of the Minnesota State Retirement System, and it must be filed within specified time frames after certain employment changes.
- If an election to transfer is made, the system will:
- Redeem the employee’s total shares and credit the general plan equivalent to what would have been contributed had the employee always been in the general plan
- Transfer the remaining balance to the general plan, accounting for actual employee contributions versus what would have been paid under the general plan
- Reconcile any differences (refund if over-contributed; payment by the employee if under-contributed)
- The transfer election is irrevocable during any period of covered employment.
- Some employees with “employee shares” in the unclassified program cannot terminate participation to join the general plan.
- The administrative details are handled by the executive director of the Minnesota State Retirement System.
Significant Changes to Existing Law
- Broader inclusion in the unclassified program
- The bill adds numerous state employee groups to the pool of people who can be covered under the unclassified program, expanding the reach of the Minnesota State Retirement System beyond previously defined categories.
- Optional transfer to the general plan
- Gives eligible workers (and certain legislators) the option to move from the unclassified program to the general state employees retirement plan, with specific eligibility criteria and a defined process.
- Defined transfer mechanics and funding
- Establishes how contributions and shares are to be calculated, redeemed, and transferred, including how any differences between plans are settled (refunds or additional payments by the employee).
- Irrevocability
- Sets that, once a transfer election is made, the decision is irrevocable for the period of covered employment, creating long-term implications for retirement benefits.
- Employer responsibilities clarified
- In certain cases (e.g., heating plant employees at the University of Minnesota), employer contributions are stated as the employer’s sole obligation, clarifying who pays into the plan.
Entities Affected (examples)
- Various state agencies and organizations listed in the bill (historical societies, associations, commissions, and university-related programs)
- Metropolitan Council and related bodies
- University of Minnesota heating plant and similar facilities
- Legislative branch personnel and certain classified/unclassified positions
- Individuals currently in the unclassified program who may elect to transfer to the general plan
Implementation Highlights
- Elections to transfer must be filed within specified deadlines after qualifying events.
- The executive director of the Minnesota State Retirement System administers transfer elections and related calculations.
- The bill lays out how to handle contributions and credits to ensure proper alignment with the chosen retirement plan.
Relevant Terms - unclassified program - general state employees retirement plan - Minnesota State Retirement System - transfer to general employees retirement plan - employee contributions - employer contributions - 352.01, 352D.02, 352.04 (statutes referenced) - eligible coverage / eligibility - election to transfer - irrevocable transfer - service credit (including reference to 490.121) - University of Minnesota heating plant facilities - legislative employee groups - Metropolitan Council and related commissions - Minnesota Historical Society / Minnesota Horticultural Society / Minnesota Crop Improvement Association - Conservation Corps Minnesota - Perpich Center for Arts Education - Tax Court judges - 2010 July 1 date (cutoff for some transfer eligibility) - shares (employee shares in the unclassified program)
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 09, 2026 | Senate | Action | Introduction and first reading | ||
| March 09, 2026 | Senate | Action | Referred to | State and Local Government |
Citations
[
{
"analysis": {
"added": [
"Adds numerous groups as included employees, including employees of the Minnesota Historical Society, employees of the State Horticultural Society, employees of the Minnesota Crop Improvement Association, and employees of the adjutant general whose salaries are paid from federal funds and who are not covered by any federal civilian employees retirement system.",
"Includes employees of the Minnesota State Colleges and Universities employed under the university or college activities program, temporarily contributing employees during legislative sessions, and various other enumerated positions (e.g., the Minnesota Safety Council, Metropolitan Council-related staff, and certain named public entities) as included employees."
],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 352.01, subdivision 2a to expand the set of 'included employees' eligible for coverage under the Minnesota State Retirement System.",
"modified": [
"Broadens the scope of who is considered an included employee under the retirement system."
]
},
"citation": "352.01",
"subdivision": "2a"
},
{
"analysis": {
"added": [
"Explicitly provides that employees enumerated in paragraph c clauses 2, 3, 4, 6 to 14, and 16 to 18 in the unclassified service (state or Metropolitan Council) who are eligible for coverage under the general state employees retirement plan are participants in the unclassified program."
],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 352D.02 subdivision 1 to clarify unclassified program participation for enumerated employees.",
"modified": [
"Aligns unclassified program participation with eligibility for the general state employees retirement plan."
]
},
"citation": "352D.02",
"subdivision": "1"
},
{
"analysis": {
"added": [
"Allows a person in the unclassified program to elect to terminate participation in the unclassified program and be covered by the general state employees retirement plan if specified conditions are met (e.g., certain tenure or legislature status).",
"Sets deadlines, irrevocability during covered employment, and rules for redeeming and transferring employee shares and contributions between the two plans."
],
"removed": [],
"summary": "Adds transfer provisions between the unclassified program and the general state employees retirement plan.",
"modified": [
"Creates the transfer mechanism and associated financial reconciliation between the unclassified program and the general state employees retirement plan."
]
},
"citation": "352D.02",
"subdivision": "3"
},
{
"analysis": {
"added": [
"Incorporates cross-reference to eligibility under section 3A.07 for those who may elect different retirement coverage under alternative plans."
],
"removed": [],
"summary": "References section 3A.07 regarding eligibility to elect different retirement coverage.",
"modified": [
"Clarifies when individuals may elect different retirement coverage outside the unclassified program."
]
},
"citation": "3A.07",
"subdivision": ""
},
{
"analysis": {
"added": [
"Adds positions described in section 15A.0815 to unclassified program eligibility."
],
"removed": [],
"summary": "Includes positions defined in section 15A.0815 within the unclassified program.",
"modified": [
"Extends unclassified program coverage to these roles."
]
},
"citation": "15A.0815",
"subdivision": "4"
},
{
"analysis": {
"added": [
"Adds positions described in section 15A.083 to unclassified program eligibility."
],
"removed": [],
"summary": "Includes positions defined in section 15A.083 within the unclassified program.",
"modified": [
"Expands unclassified program coverage to these roles."
]
},
"citation": "15A.083",
"subdivision": "4"
},
{
"analysis": {
"added": [
"Incorporates cross-references to the retirement plan options existing under chapter 354B (including the individual retirement account plan framework) as applicable to the unclassified program."
],
"removed": [],
"summary": "References to the unclassified program and retirement options under chapter 354B.",
"modified": [
"Directs consideration of 354B-based retirement options for certain unclassified program participants."
]
},
"citation": "354B",
"subdivision": ""
},
{
"analysis": {
"added": [
"Includes employees of the Minnesota State Colleges and Universities (MnSCU) as eligible for unclassified program coverage under the specified pre- and post-May 1, 1995 criteria."
],
"removed": [],
"summary": "Adds MnSCU-related eligibility criteria under 354B.20(5) to the unclassified program.",
"modified": [
"Incorporates MnSCU employment history and transition considerations into unclassified program eligibility."
]
},
"citation": "354B.20",
"subdivision": "5"
},
{
"analysis": {
"added": [
"Includes MnSCU employees with pre-1995 state service who later hold eligible unclassified administrative positions and elect unclassified program coverage."
],
"removed": [],
"summary": "Adds MnSCU employees who were employed before July 1, 1995 and later hold eligible unclassified administrative positions to unclassified program coverage.",
"modified": [
"Outlines election mechanics and transition provisions for these MnSCU employees."
]
},
"citation": "354B.20",
"subdivision": "6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References the mandatory retirement age in 43A.34(4) in connection with covered employees.",
"modified": [
"Links certain retirement eligibility requirements to the mandatory retirement age specified in 43A.34(4)."
]
},
"citation": "43A.34",
"subdivision": "4"
},
{
"analysis": {
"added": [
"Incorporates or references retirement provisions from 43A.18(3) as applicable to unclassified program participants."
],
"removed": [],
"summary": "Cross-reference to retirement-related provisions in 43A.18(3).",
"modified": []
},
"citation": "43A.18",
"subdivision": "3"
},
{
"analysis": {
"added": [
"Notifies that certain peace officers under the Commerce Fraud Bureau fall under retirement plan considerations per 45.0135."
],
"removed": [],
"summary": "References to the Commerce Fraud Bureau peace officer provisions under 45.0135 with retirement implications.",
"modified": []
},
"citation": "45.0135",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-reference to public pension funds or plans under 473.415(3) for employees who may be covered by another fund or plan.",
"modified": []
},
"citation": "473.415",
"subdivision": "3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Reference to the service credit limit for judicial employment under 490.121(22).",
"modified": []
},
"citation": "490.121",
"subdivision": "22"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References to employee and employer contributions within the general and unclassified programs, including deductions per 352.04.",
"modified": [
"Coordinates contribution requirements and the handling of contributions during transfers between unclassified and general plans, per 352.04."
]
},
"citation": "352.04",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Provision for refunds or adjustments of employee contributions under 352.22 when transferring between plans.",
"modified": [
"Establishes the method and timing for refunds or adjustments of employee contributions during transfers."
]
},
"citation": "352.22",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Notes that section 352.029 does not apply to certain associations (e.g., Middle Management Association, Minnesota Government Engineers Council).",
"modified": []
},
"citation": "352.029",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References to Minnesota Statutes, chapter 352 (general state employees retirement plan).",
"modified": [
"Frames the overall context by referencing the general state employees retirement plan contained in chapter 352."
]
},
"citation": "352",
"subdivision": ""
}
]Progress through the legislative process
In Committee