This bill modifies the contribution rates for the General Employees Retirement Plan in Minnesota, directly affecting public employees and their employers. It lowers the required employee contribution to 5.5% and the employer contribution to 7.5% for school employees starting July 1, 2026, while maintaining higher rates for other public sector workers. The legislation updates existing state statutes to reflect these new percentages, ensuring that salary deductions and employer payments align with the revised financial structure for the retirement plan.
This bill modifies Minnesota's paid leave law to exclude certain categories of workers from coverage, including seasonal employees, substitute employees, and individuals already covered under a specific retirement plan provision. It also creates new legal definitions for "part-year employment" and "substitute employee" to clarify eligibility rules. The legislation allows excluded employers to voluntarily opt into coverage and establishes that part-year workers can only use accrued paid leave when not actively working for a covered employer. These changes directly affect how various employment types are classified under the state's paid leave system.
