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SF 5308

Payment authorization of a retirement annuity without reduction or suspension upon reemployment of a police officer

2025-2026 Regular Session Introduced by Doron Clark

Allows retiring police to return to work without reducing their annuity, with continued health insurance, required contributions, and city caps on reemployed annuitants.

Referred to State and Local Government
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Bill Summary · SF 5308

Overview

SF 5308 (Session: 2025-2026) from Minnesota focuses on allowing a police officer who is a member of the Public Employees Police and Fire Retirement Plan to return to work after retirement without having the retirement annuity reduced or suspended, while also addressing continued health insurance participation, contributions during reemployment, and limits on how many reemployed annuitants a city may hire.

Main purpose and intent

  • Authorize payment of a retirement annuity to a police officer without reduction or suspension when the officer returns to reemployment as a police officer covered by the Public Employees Police and Fire Retirement Plan.
  • Permit continued participation in the statewide public employees insurance program during the reemployment period, with costs to be borne by the member unless offset by collective bargaining or personnel policy.
  • Establish limits on the number of reemployed annuitants a city may hire as police officers, with tiered thresholds based on the city’s prior year staffing.

Key provisions and changes

  • Section 1 (amendment to 353.37): Adds a new subdivision governing applicability to police officers reemployed after retirement. Excludes certain reemployment scenarios from this subsection and defines “police officer” per section 353.64. Effective the day after final enactment.
  • Section 2 ([353.658] Reemployment as a Police Officer): Creates a dedicated framework for reemployment of police officers who are members of the police and fire plan.
    • Subdivision 1 (Definitions): Clarifies terms, including “police and fire plan” and “police officer.”
    • Subdivision 2 (Eligibility): Applies to members who are police officers with at least five years of allowable service who are currently receiving or have applied to receive an annuity.
    • Subdivision 3 (Return to employment): Eligible members may return to employment as early as the second day after separation if at least age 55; the executive director must seek repayment of any annuity payments if returning before the earliest allowed day, with possible waiver for inadvertent/no-fault scenarios.
    • Subdivision 4 (Effect on annuity): Returning to work does not affect ongoing annuity payments; during reemployment, the annuity must not change due to reemployment, and both employee and employer contributions are required; no new allowable service credit is earned during reemployment.
    • Subdivision 5 (Separation after reemployment): Upon separation after reemployment, the executive director must refund contributions made during reemployment plus interest.
    • Subdivision 6 (Other law and rules not applicable): Section 353.37 and certain rules do not apply to these reemployed annuitants, with specific fingerprinting requirements retained.
    • Subsection 7 (Effect on insurance benefits): Reemployment does not affect continued participation in the statewide public employees insurance program; such participation is at the member’s expense during reemployment unless otherwise provided by a collective bargaining agreement or personnel policy.
    • Subdivision 8 (Limitation; reemployed annuitants): Establishes city-level caps on reemployed annuitants.
    • If a city employed 5 or fewer police officers in the preceding calendar year: unlimited reemployed annuitants allowed.
    • If a city employed more than 5 but fewer than 100: no more than 5 reemployed annuitants, or 25% of prior-year sworn police officers, whichever is greater.
    • If a city employed 100 or more: no more than 25 reemployed annuitants, or 10% of prior-year sworn officers, whichever is greater.
    • Subsection 8 is effective the day after final enactment.

Who is affected

  • Police officers who are members of the Public Employees Police and Fire Retirement Plan and who choose to return to work as police officers after retirement.
  • Cities and their police departments that employ reemployed annuitants, subject to the caps and thresholds in Subdivision 8.
  • The Executive Director of the plan (for repayment and refund actions related to annuity payments and contributions).
  • Members’ health insurance (via the statewide public employees insurance program) and employers’ contributions during reemployment.

Procedural and timeline aspects

  • Effective date: The day after final enactment.
  • Return-to-work timing: Eligible after separation, as early as the second day after separation if the member is at least 55 years old.
  • Annuity treatment during reemployment: Annuity payments continue, with no automatic increase or decrease due to reemployment.
  • Contributions during reemployment: Members contribute under 353.65(2); employers contribute under 353.65(3).
  • Post-reemployment separation: Contributions made during reemployment are refunded with interest after separation.
  • Insurance: Continued participation in the state insurance program remains, but at the member’s expense during reemployment unless otherwise negotiated.
  • Caps: City-level hiring limits based on prior-year officer counts; thresholds differ by city size.

Note on scope and compatibility

  • The bill explicitly does not apply to certain reemployment scenarios when an annuitant is returning under 353.658 (new framework).
  • The bill adds coding for new law in Minnesota Statutes, creating a standalone framework for reemployed annuitants within the police and fire retirement system.

Compiled from official sources — confirm details with the bill’s official record.

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