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HF 3953

Public employees police and fire retirement plan; application of the reduction for reemployment earnings taken from disability benefits to members who began disability payments before July 1, 2023 modified.

2025-2026 Regular Session Introduced by David Gottfried and 5 co-sponsors

Allows Minnesota police and fire workers who started disability before July 2023 to avoid or reduce earnings penalties when returning to work, potentially increasing pension costs.

Author added Luger-Nikolai
#disabilitiesandaccess #fireandfirefighters #policeandpeaceofficers #retirement-publicandstateemployees
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Bill Summary · HF 3953

Legislative bill overview

HF 3953 modifies Minnesota's public employee retirement rules for police and fire workers who receive disability benefits. Specifically, it changes how "reemployment earnings reductions" apply to members who began collecting disability payments before July 1, 2023—essentially grandfathering in earlier beneficiaries under different rules than those who started after that date.

Why is this important

Disability retirement benefits for police and firefighters involve complex calculations that can be affected if retirees return to work. This bill determines whether earlier retirees face penalties on their disability benefits if they earn income from new employment, which directly affects their monthly income and retirement security during what are often challenging life circumstances.

Potential points of contention

  • Fairness across cohorts: Creates different rules for similar workers based solely on when they began disability—those before July 1, 2023 receive more favorable treatment, raising equity questions
  • Fiscal impact: Modifying benefit reductions increases long-term pension fund obligations and taxpayer liability, with unclear cost projections
  • Work incentives: Reducing penalties on reemployment earnings may encourage disabled officers to work more (positive) but could strain limited-duty positions available in departments

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

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