SF 5308

05/14/26  REVISOR  TW/CG  26-08626  as introduced
  SENATE
  STATE OF MINNESOTA
  NINETY-FOURTH SESSION  S.F. No. 5308
  (SENATE AUTHORS: CLARK)
  DATE       D-PG  OFFICIAL STATUS
  05/17/2026    10924 Introduction and first reading
  Referred to State and Local Government
1.1A bill for an act
1.2relating to retirement; public employees police and fire retirement plan; authorizing
1.3payment of a retirement annuity without reduction or suspension upon
1.4reemployment of a police officer; authorizing continued participation in the
1.5statewide public employees insurance program during reemployment as a police
1.6officer; setting limits on the number of retired police officers that a city may employ
1.7as police officers; amending Minnesota Statutes 2024, section 353.37, by adding
1.8a subdivision; proposing coding for new law in Minnesota Statutes, chapter 353.
1.9      BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10Section 1. Minnesota Statutes 2024, section 353.37, is amended by adding a subdivision
1.11     to read:
1.12Subd. 7. Applicability; police officers. (a) This section does not apply to the
1.13     reemployment of a police officer who is receiving an annuity or has applied to receive an
1.14     annuity from the public employees police and fire retirement plan and who, pursuant to
1.15     section 353.658, returns to employment as a police officer covered by the public employees
1.16     police and fire retirement plan.
1.17(b) For purposes of this subdivision, "police officer" means an individual described as
1.18     a police officer in section 353.64.
1.19EFFECTIVE DATE. This section is effective the day following final enactment.
1.20Sec. 2. [353.658] REEMPLOYMENT AS A POLICE OFFICER.
1.21Subdivision 1. Definitions. For purposes of this section, the following terms have the
1.22     meanings given:
Sec. 2.  1
 05/14/26  REVISOR  TW/CG  26-08626  as introduced
2.1      (1) "police and fire plan" means the public employees police and fire retirement plan of
2.2  the Public Employees Retirement Association; and
2.3      (2) "police officer" means an individual described as a police officer in section 353.64.
2.4      Subd. 2. Eligibility. This section applies to a member of the police and fire plan who:
2.5      (1) is a police officer;
2.6      (2) separated from service with at least five years of allowable service in the police and
2.7  fire plan; and
2.8      (3) is receiving or has applied to receive an annuity under section 353.651.
2.9      Subd. 3. Return to employment. (a) A member who is eligible under subdivision 2
2.10 may return to employment for a city as a police officer covered by the police and fire plan
2.11 as early as the second day after separation from service if the member is at least age 55.
2.12     (b) The executive director must seek repayment of any annuity payments made to a
2.13 member who returns to employment before the earliest day under paragraph (a). The
2.14 executive director may waive the repayment requirement if the member's failure to comply
2.15 with paragraph (a) was inadvertent or due to no fault of the member.
2.16     Subd. 4. Effect on annuity. (a) A member's return to employment under subdivision 3
2.17 does not impact the member's continued receipt of an annuity or commencement of annuity
2.18 payments.
2.19     (b) During the period of reemployment:
2.20     (1) the amount of the annuity must not increase or decrease as a result of the
2.21 reemployment;
2.22     (2) the member must make employee contributions as required under section 353.65,
2.23 subdivision 2, during the period of reemployment; and
2.24     (3) the member's employer must make employer contributions as required under section
2.25 353.65, subdivision 3.
2.26     (c) A member must not earn allowable service in the police and fire plan for employment
2.27 covered under this section.
2.28     Subd. 5. Separation from service after period of reemployment. The executive director
2.29 must refund the member's contributions made during the period of reemployment, plus
2.30 interest, following the member's separation from service after the period of reemployment.
 Sec. 2.  2
 05/14/26  REVISOR  TW/CG  26-08626  as introduced
3.1      Subd. 6. Other law and rules not applicable. (a) Section 353.37 does not apply to a
3.2  member of the police and fire plan who returns to employment under this section.
3.3      (b) Minnesota Rules, part 6700.0675, does not apply to a member of the police and fire
3.4  plan who returns to employment under this section.
3.5      (c) Minnesota Rules, part 6700.0670, does not apply to a member of the police and fire
3.6  plan who returns to employment under this section, except that the member must be
3.7  fingerprinted and the fingerprints must be forwarded by the employer to the Bureau of
3.8  Criminal Apprehension and the Federal Bureau of Investigation.
3.9      Subd. 7. Effect on insurance benefits. (a) The member's return to employment under
3.10 subdivision 3 does not impact the member's continued participation in the statewide public
3.11 employees insurance program pursuant to section 43A.316, subdivision 8.
3.12     (b) During the period of reemployment, the continued participation in the statewide
3.13 public employees insurance program is at the member's expense unless a collective bargaining
3.14 agreement or personnel policy provides otherwise.
3.15     Subd. 8. Limitation; reemployed annuitants. (a) A city is limited in the number of
3.16 members it may reemploy as police officers under this section.
3.17     (b) A city that employed five or fewer police officers over the course of the immediately
3.18 preceding calendar year may employ any number of members who are returning to
3.19 employment under this section.
3.20     (c) A city that employed more than five but fewer than 100 police officers over the
3.21 course of the immediately preceding calendar year may not employ more than five members
3.22 who are returning to employment under this section or a number equal to 25 percent of the
3.23 police officers employed by the city in the immediately preceding calendar year, whichever
3.24 is greater.
3.25     (d) A city that employed 100 or more police officers over the course of the immediately
3.26 preceding calendar year may not employ more than 25 members who are returning to
3.27 employment under this section or a number equal to ten percent of the police officers
3.28 employed by the city in the immediately preceding calendar year, whichever is greater.
3.29     EFFECTIVE DATE. This section is effective the day following final enactment.
 Sec. 2.  3