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HF 4402

Public Employees Retirement Association; eligible person authorized to purchase service credit for periods of omitted service.

2025-2026 Regular Session Introduced by Sydney Jordan and 1 co-sponsor

The bill allows an designated eligible person to purchase PERA service credit for periods of omitted service to increase retirement benefits.

Author added Virnig
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Bill Summary · HF 4402

Summary of HF 4402 (2025-2026) — Minnesota

Title

Public Employees Retirement Association; eligible person authorized to purchase service credit for periods of omitted service

Purpose and intent

HF 4402 proposes to authorize a specific category of individuals to purchase service credit with the Public Employees Retirement Association (PERA) for periods of omitted service. The bill aims to clarify eligibility and streamline the process for purchasing service credit that was not previously credited, thereby affecting retirement benefits and benefit calculations for affected members.

Key provisions and changes

  • Subject: Minnesota Public Employees Retirement Association (PERA) retirement system.
  • Eligible purchaser: The bill designates an “eligible person” who may buy service credit for periods of omitted service. The term “omitted service” refers to periods of service that did not properly appear in PERA records or were not credited to an employee’s PERA account.
  • Purchase of service credit: Authorized to purchase service credit to cover periods of omitted service. Purchase would likely count toward years of service for retirement benefit calculations and possibly toward eligibility for retirement age or prerequisites, depending on PLAN rules.
  • Authority and process: The bill would establish or confirm the authorization for the eligible person to make a purchase of service credit. It may specify application requirements, documentation, timelines, and any limits or conditions related to such purchases (e.g., maximum credits that can be purchased, interest/price calculations, and funding mechanics).
  • Impact on benefits: By purchasing omitted service, an employee’s credited service time increases, which can affect:
    • Estimated retirement eligibility (e.g., age/years of service thresholds)
    • Annual retirement benefit amount (based on higher credited service)
    • Potential adjustment to calculations for survivor benefits or disability benefits, if applicable
  • Costs and funding: Likely to include discussions of the cost to purchase and whether any interest, actuarial adjustments, or funding requirements apply. The bill may reference how the purchase price is determined and paid (lump sum, installments, or other methods).

Who would be affected

  • Current PERA members who have periods of omitted service that can be purchased under the bill’s provisions.
  • Potentially, retirees and beneficiaries who receive PERA benefits, as changes in credited service can alter benefit levels or eligibility.
  • PERA administration and participating employers, which administer service records, process purchases, and adjust benefit calculations accordingly.

Procedural and timeline aspects

  • Introduced and first reading: March 16, 2026; referred to State Government Finance and Policy.
  • Author addition: March 18, 2026 (added Rep. Virnig as an author).
  • Next steps: If advanced, the bill would move through committee hearings (likely within State Government Finance and Policy or related committees) for evidence, amendments, and potential floor votes, followed by escalation to the Minnesota House and Senate proceedings.

Notes

  • The summary reflects the bill’s stated focus on authorization for an eligible person to purchase service credit for omitted service within PERA. Specific definitions (e.g., who qualifies as an eligible person), precise purchase mechanics, pricing, payment options, and any sunset or renewal provisions would be found in the bill’s text and any amended language during committee consideration.

If you’d like, I can incorporate the bill’s exact language or align this summary with the current PERA rules to highlight how this would modify existing processes.

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

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