This bill amends Minnesota Statutes 2024, section 353.656, subdivision 4, to increase the reemployment earnings limit applicable to disability benefit payments for public employees in police and fire retirement plans. Specifically, the bill raises the limit from $125 to $150 of the monthly salary currently paid by the employing governmental subdivision for similar positions. The adjustments to the disability benefits are structured to ensure that if a disabled member resumes gainful employment, their disability benefit will be reduced based on their earnings exceeding the new reemployment earnings limit.

Additionally, the bill outlines different provisions for members who begin disability payments before and after July 1, 2023. For those who start receiving benefits before this date, the reduction in benefits is calculated based on a specific formula involving their earnings and the reemployment earnings limit. For members starting on or after July 1, 2023, the reduction is based on their years of service and a more complex formula that considers their average salary and reemployment earnings. The bill also clarifies that these provisions do not apply to members receiving total and permanent disability benefits. The changes are set to take effect the day following final enactment.

Statutes affected:
Introduction: 353.656