Minnesota State Retirement System, Public Employees Retirement Association, Teachers Retirement Association, St. Paul Teachers' Retirement Fund Association "Salary" definition modification to exclude pay from the family and medical benefit insurance account for Minnesota Paid Leave

This bill modifies how "salary" is defined for retirement systems in Minnesota, specifically excluding payments from the Minnesota Paid Leave family and medical benefit insurance account. It directly affects employees covered by the Minnesota State Retirement System, Public Employees Retirement Association, Teachers Retirement Association, and St. Paul Teachers' Retirement Fund Association. The key change adds a new exclusion to the definition of salary, ensuring that contributions made to the Minnesota Paid Leave insurance account are not counted as salary for retirement benefit calculations. This adjustment applies retroactively to January 1, 2026, and aligns with existing exclusions for other types of payments like sick leave, severance, and workers' compensation.