2025 Session Last amended: 2024 session

§ 356.25 — Local Governmental Pension Fund Prohibitions; Exclusions

Plain-Language Summary

This section prohibits cities, counties, and other local governments from creating new local pension plans paid for with public funds. The only exceptions are supplemental pension or deferred compensation plans allowed under section 356.24 and firefighter relief associations under chapter 424A.

356.25 LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS; EXCLUSIONS.

Notwithstanding any other provision of law or charter to the contrary, no city, county, public agency or instrumentality, or other political subdivision is required or permitted to establish for any of its employees a local pension plan or fund financed in whole or in part from public funds, other than:

(1) a supplemental pension or deferred compensation plan authorized under section 356.24; or

(2) a firefighters relief association that is established under chapter 424A and is governed by sections 424A.091 to 424A.096.

History:

1975 c 405 s 1; 1977 c 429 s 63; 1981 c 224 s 173; 1984 c 655 art 1 s 60; 2002 c 392 art 10 s 2; art 11 s 18; 2013 c 111 art 5 s 80;2024 c 102 art 2 s 31

History: History: 1975 c 405 s 1; 1977 c 429 s 63; 1981 c 224 s 173; 1984 c 655 art 1 s 60; 2002 c 392 art 10 s 2; art 11 s 18; 2013 c 111 art 5 s 80;2024 c 102 art 2 s 31

Practical Notes

Local governments cannot set up their own separate pension systems for employees. All public employees must participate in the statewide pension plans. This rule ensures consistency and prevents the creation of underfunded local pension plans.

Source: Minnesota Office of the Revisor of Statutes