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SF 3493

Public Employees Retirement Association employer failure to record service correction provision and employee and employer contributions on omitted service and extending Rule of 90 eligibility for an eligible employee requirement provision

2025-2026 Regular Session Introduced by John Hoffman

Fixes PERA by correcting omitted service, requires back employee and employer contributions, and extends Rule of 90 retirement eligibility for affected public workers.

Referred to State and Local Government
#associationsandsocieties #retirement
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Bill Summary · SF 3493

Summary: SF 3493 — PERA Omitted Service Corrections, Contributions on Omitted Service, and Rule of 90 Eligibility Extension

Overview

SF 3493 is a Minnesota Senate bill introduced on May 7, 2025, and referred to the State and Local Government committee. The bill addresses adjustments related to the Public Employees Retirement Association (PERA) when an employer fails to record service, requires contributions on omitted service (both employee and employer), and seeks to extend Rule of 90 eligibility for an eligible employee. A companion bill is HF 3300.

Purpose and intent

  • Correct situations where an employer failed to record or credit service in PERA records.
  • Establish requirements for employee and employer contributions tied to omitted service, ensuring credit and funding alignment for service that was not previously recorded.
  • Extend Rule of 90 eligibility for eligible employees, potentially broadening retirement qualification by modifying the eligibility criteria or crediting service to meet Rule of 90.

Key provisions (as suggested by title)

  • PERA service corrections: A formal mechanism to address and rectify employer failures to record service time that should have been credited to an employee.
  • Contributions on omitted service: Requirements for both employees and employers to contribute toward the service that was omitted, aligning contributions with credited service in PERA records.
  • Rule of 90 eligibility extension: Changes to eligibility for retirement under the Rule of 90 framework (age plus service credit) to enhance or broaden eligibility for eligible employees.
  • Administrative alignment: Provisions likely intended to be implemented through PERA rules and employer reporting processes to prevent future omissions.

Who would be affected

  • Public employees who have had service omitted from PERA records.
  • Employers that administer payroll and report service data to PERA.
  • PERA as the administering retirement system responsible for implementing corrections and tracking contributions.
  • Any employees seeking retirement eligibility under the Rule of 90 who would be affected by the extended eligibility criteria.

Procedural and timeline notes

  • Introduced: May 7, 2025.
  • Status: Referred to State and Local Government (committee stage) for consideration and possible amendment.
  • Related legislation: HF 3300 is identified as the companion bill.

Potential impact and considerations

  • Financial: Requiring both employee and employer contributions for omitted service could impact back contributions and employer budget obligations, as well as employee benefit accrual levels.
  • Administrative: Implementation would require procedures for identifying omitted service, calculating back contributions, and updating PERA records and retirement calculations.
  • Retirement eligibility: Extending Rule of 90 eligibility could change retirement timelines for affected employees, potentially allowing earlier or more flexible retirement.

Next steps for readers

  • Monitor updates on SF 3493 as it progresses through the State and Local Government committee.
  • Review the companion HF 3300 for parallel provisions and any differences between the Senate and House drafts.
  • Consult PERA for details on how omitted service corrections and back contributions would be calculated and processed.

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

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