LCPR recommends 2026 omnibus pension bill that eases contributions, funds para public safety and new probation/telecommunicator plans
May 05, 2026 | 2026 Legislature MN, Minnesota
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The Legislative Commission on Pensions and Retirement recommended passage of the 2026 omnibus pension and retirement bill on May 5, advancing a package of amendments that reduce contribution rates for some workers and provide targeted state aid to public safety and teacher plans.
Staff and fiscal analysts told the commission the assembled amendments would cost about $12.4 million in the current biennium and add roughly $12.78 million per year in the tails, for a total tails impact of $25.56 million. "This package of proposed amendments ... would amount to $12,400,000 in the current budget biennium, and then 12,780,000 each year of the tails for a total, tails hit of $25,560,000," Andrew Erickson of Senate Counsel, Research and Fiscal Analysis said.
Members approved a series of amendments that were folded into the omnibus bill. Among the key changes adopted were: a 16a amendment for the Saint Paul Teachers Retirement Association that reduces post‑June 30, 2026 employee contribution rates (basic members from 11.5% to 10.5%; coordinated members from 9% to 8%) and provides $3.4 million in direct state aid; a 14a amendment for the Para Police and Fire Plan that shortens COLA waiting periods and directs $8 million a year in state aid (terminating either after three years of a 100% funded ratio or by 07/01/2048); and provisions establishing probation officer and 9‑1‑1 telecommunicator subplans to be administered by MSRS and a PERA‑administered local government plan.
Miss Wilson, staff to the commission, summarized the fiscal and policy mechanics of several amendments, including the COLA timing changes and the temporary buy‑down of employee contributions for the new probation and telecommunicator plans. On the state aid for para police and fire, she told members the 14a amendment "is a direct state aid of $8,000,000 per year until 07/01/2042," a number that tracked the fiscal spreadsheet.
To ease the transition for county and city employees moving to the new PERA plan, the commission adopted a 17a amendment that provides $2,610,000 to the new PERA local government probation/telecommunicator fund and $390,000 to MSRS as one‑time state aid (a $3,000,000 total) intended to temporarily lower employee contribution rates to 8% through Aug. 31, 2028. Staff and members clarified that the $3,000,000 is a temporary buy‑down and that, depending on actuarial details, the money ‘‘doesn't actually bring it down to a full 8%’’ for every plan year without further appropriation.
Members also adopted Appendix C, which sets the actuarial method PERA will use to calculate the assets to transfer from the PERA general plan into the new probation and telecommunicator fund for members who move on Jan. 1, 2027. Staff said Appendix C provides the actuaries' calculation method so benefits payable to transferred members are funded from the new fund's assets.
After consideration of all amendments, Representative O'Driscoll moved that senate file 42 76/house file 40 74, as amended, be recommended to pass as the 2026 omnibus pension and retirement bill; the motion prevailed and the commission forwarded the recommendation to the house and senate committees of jurisdiction.
Votes at a glance: the commission adopted the 6a, 16a, 14a, 12a, 10a, 11a, 17a, 5a, 3a, 2a, and 15a amendments and approved Appendix C; the final motion recommending passage of the omnibus bill passed by voice vote. Where roll calls occurred, staff recorded tallies at the time of the vote.
Why it matters: the package contains near‑term relief and targeted state aid intended to address benefit disparities for public safety personnel and to stand up new plans for probation officers and telecommunicators. If enacted by the legislature, the measures will change contribution and COLA timing rules, create new administrative structures for subplans, and move several policy decisions into implementation and the actuarial processes.
The commission adjourned after extended member remarks and recognition of retiring members.
Staff and fiscal analysts told the commission the assembled amendments would cost about $12.4 million in the current biennium and add roughly $12.78 million per year in the tails, for a total tails impact of $25.56 million. "This package of proposed amendments ... would amount to $12,400,000 in the current budget biennium, and then 12,780,000 each year of the tails for a total, tails hit of $25,560,000," Andrew Erickson of Senate Counsel, Research and Fiscal Analysis said.
Members approved a series of amendments that were folded into the omnibus bill. Among the key changes adopted were: a 16a amendment for the Saint Paul Teachers Retirement Association that reduces post‑June 30, 2026 employee contribution rates (basic members from 11.5% to 10.5%; coordinated members from 9% to 8%) and provides $3.4 million in direct state aid; a 14a amendment for the Para Police and Fire Plan that shortens COLA waiting periods and directs $8 million a year in state aid (terminating either after three years of a 100% funded ratio or by 07/01/2048); and provisions establishing probation officer and 9‑1‑1 telecommunicator subplans to be administered by MSRS and a PERA‑administered local government plan.
Miss Wilson, staff to the commission, summarized the fiscal and policy mechanics of several amendments, including the COLA timing changes and the temporary buy‑down of employee contributions for the new probation and telecommunicator plans. On the state aid for para police and fire, she told members the 14a amendment "is a direct state aid of $8,000,000 per year until 07/01/2042," a number that tracked the fiscal spreadsheet.
To ease the transition for county and city employees moving to the new PERA plan, the commission adopted a 17a amendment that provides $2,610,000 to the new PERA local government probation/telecommunicator fund and $390,000 to MSRS as one‑time state aid (a $3,000,000 total) intended to temporarily lower employee contribution rates to 8% through Aug. 31, 2028. Staff and members clarified that the $3,000,000 is a temporary buy‑down and that, depending on actuarial details, the money ‘‘doesn't actually bring it down to a full 8%’’ for every plan year without further appropriation.
Members also adopted Appendix C, which sets the actuarial method PERA will use to calculate the assets to transfer from the PERA general plan into the new probation and telecommunicator fund for members who move on Jan. 1, 2027. Staff said Appendix C provides the actuaries' calculation method so benefits payable to transferred members are funded from the new fund's assets.
After consideration of all amendments, Representative O'Driscoll moved that senate file 42 76/house file 40 74, as amended, be recommended to pass as the 2026 omnibus pension and retirement bill; the motion prevailed and the commission forwarded the recommendation to the house and senate committees of jurisdiction.
Votes at a glance: the commission adopted the 6a, 16a, 14a, 12a, 10a, 11a, 17a, 5a, 3a, 2a, and 15a amendments and approved Appendix C; the final motion recommending passage of the omnibus bill passed by voice vote. Where roll calls occurred, staff recorded tallies at the time of the vote.
Why it matters: the package contains near‑term relief and targeted state aid intended to address benefit disparities for public safety personnel and to stand up new plans for probation officers and telecommunicators. If enacted by the legislature, the measures will change contribution and COLA timing rules, create new administrative structures for subplans, and move several policy decisions into implementation and the actuarial processes.
The commission adjourned after extended member remarks and recognition of retiring members.
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