Public employees police and fire retirement plan; application of the reduction for reemployment earnings taken from disability benefits to members who began disability payments before July 1, 2023 modified.

This bill modifies how disability benefits are reduced for Minnesota police, firefighter, and paramedic members who started receiving disability payments before July 1, 2023, when they return to work. It changes the calculation method for reducing disability benefits when these members earn income from other employment, ensuring the reduction applies consistently to those who began disability before the specified date. The legislation updates existing rules to clarify how much disability benefits decrease based on reemployment earnings, using a dollar-for-dollar reduction ratio for certain service levels and a tiered approach for others. This change affects only current disability recipients who started their benefits prior to the July 1, 2023 cutoff, while members who began receiving benefits on or after that date remain subject to previously established reduction rules.