This bill amends various sections of Minnesota Statutes related to the definitions of "salary" for different retirement systems, specifically the Minnesota State Retirement System, Public Employees Retirement Association, Teachers Retirement Association, and St. Paul Teachers' Retirement Fund Association. The key modification is the exclusion of payments from the family and medical benefit insurance account for Minnesota paid leave under chapter 268B from the definition of "salary." This exclusion is added to the existing list of items that do not constitute salary, which includes lump-sum payments, severance payments, and various employer-paid benefits.

Additionally, the bill specifies that the amendments will take effect retroactively from January 1, 2026, for certain provisions, while others will take effect on July 1, 2026. The changes aim to clarify the components of salary that are considered for retirement benefits, ensuring that payments related to family and medical leave do not impact the calculation of retirement contributions.

Statutes affected:
Introduction: 352.01, 353.01, 354.05, 354A.011