State retirement systems outline 2026 bills: subplans for public safety workers, changes to contributions and administrative rules
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Summary
MSRS, PERA, TRA and Saint Paul Teachers presented 2026 legislative priorities including MSRS fixes for a fire marshal subplan, PERA proposals on volunteer firefighter administration and correctional-plan contribution adjustments, and TRA proposals on disability documentation and reemployed‑annuitant rules.
Executives from Minnesota’s major public retirement systems used the Legislative Commission on Pensions and Retirement meeting on Feb. 24 to preview bills and administrative changes they plan to seek in the 2026 session.
MSRS (Aaron Leonard) said its administrative bill will correct an enrollment omission for two firefighters in a subplan and proposed adopting the Probation and 911 telecommunicators subplan under the general plan. Leonard said the telecommunicator/probation subplan would add about 429 members to MSRS and cost roughly 4.71% of pay, approximately $1.7 million per year, according to actuary estimates.
PERA (Doug Anderson and Amy Straney) outlined several items they plan to pursue, including a recodification of pre‑retirement survivor benefits, administrative and policy changes to the statewide volunteer firefighter plan, and statutory clarification that Minnesota paid‑leave payments are not eligible salary for pension purposes. PERA also described a proposal to reduce correctional plan member contributions from 6.83% to 6% and employer contributions from 10.25% to 9% while increasing the maximum supplemental (from 2.5% to 3%); PERA staff said stakeholders have been engaged and the board approved the outreach.
TRA (Tim Mauer and Holly Dayton) said it will seek authority to allow physician assistants to submit medical documentation for disability claims, ask that the temporary suspension of reemployed‑annuitant earnings limits be extended through 2030 (current sunset 2027), and lower the age at which reemployed annuitants can enter return‑to‑work agreements from 62 to 59½. TRA also plans technical clarifications about Minnesota paid leave and to move joint‑and‑survivor interest rates into the LCPR appendix.
Saint Paul Teachers’ representative described a request for parity with other statewide plans on post‑retirement adjustments and employee contributions; staff estimated parity would cost about $12 million per year. The fund reported it remains the least funded among the plans (69.7% actuarial) and noted liquidity constraints that inform its ability to pursue benefit increases.
Commission members pressed staff on measurement differences between market value and actuarial (smoothed) value, the cost and scope of proposed subplans, and the implications of layered amortization for cost estimates. No final bills were voted on; presenters said work with stakeholders and drafting would continue ahead of the legislative session.
