Focus on New Laws: Changes to Public Safety Disability Benefits

New state law modifies public safety duty disability benefits, limiting health insurance coverage, and expanding access to treatment while working.

The omnibus pensions and retirement bill, signed by Gov. Tim Walz on May 23, includes a League-supported provision that modifies disability benefit rules for duty disabled police officers and firefighters. Article 15 of Chapter 37 contains updates to the public safety duty disability law passed in 2023, aiming to improve its long-term viability. The law became effective May 24, 2025.

Background and 2023 law changes

In recent years, public safety duty disability claims have increased, contributing to the financial instability of the Public Employee Retirement Association Police and Fire (PERA-P&F) fund.

In 2023, the Legislature passed a series of changes to address this trend. Among the most notable was a requirement that PERA Police and Fire plan members complete 24 weeks of psychological treatment before qualifying for duty disability benefits related to psychological injuries.

The law also ensures that officers receive salary and benefits during treatment and that employers cover treatment costs not paid by insurance.

Additionally, the 2023 law included a one-time $100 million appropriation to the Public Safety Officer Benefit (PSOB) Program, administered by the Minnesota Department of Public Safety. This funding allowed for full reimbursement of eligible expenses — including treatment costs, salary continuation, and benefits — rather than prorated reimbursements used in prior years.

While this one-time funding provides reimbursement for these costs, another appropriation will be needed to keep funding full reimbursements. Future state budget deficits could reduce or eliminate that reimbursement, returning to the unfunded mandate that existed prior to 2023.

Continued health insurance benefits

One of the most significant updates made in 2025 addresses the employer obligation to continue health insurance coverage for duty disabled public safety employees.

Minnesota Statutes, section 299A.465, provides for continued health insurance coverage for qualified peace officers and firefighters who are disabled or killed in the line of duty, along with eligible dependents. Under the law, cities must pay the employer’s share of the health insurance premium if the employee or dependent meets the eligibility criteria and is determined to be duty disabled. Employers have long raised concerns that providing health insurance until age 65 creates a financial incentive for employees to pursue duty disability retirement.

A key provision of the 2025 law reduces the duration of continued health insurance benefits for regular duty disabilities to five years, down from coverage until age 65 (the age of Medicare eligibility). However, employees found to have a total and permanent duty disability will still receive coverage through age 65. State Patrol members are exempt from this change.

Under the new law, employers must continue to provide coverage for:

• Total and permanent duty disabilities until the officer or firefighter reaches the age of 65 (or would have reached age 65 if deceased).
• Those who applied for or were approved for duty disability before May 23, 2025, until the officer or firefighter reaches the age of 65.
• Those who apply for a regular duty disability on and after May 23, 2025, for 60 months (five years).

Benefit recipients can waive continued coverage, but they cannot receive compensation or any other form of consideration in place of the benefit.

Expanded access to treatment for active employees

Stakeholders raised concerns that police officers and firefighters who wished to remain on the job while receiving psychological treatment were excluded from benefits. The 2025 law corrects that.

Now, under Minnesota Statutes, section 353.032, public safety employees may receive psychological treatment while remaining on active duty, whether in full-time, part-time, or light duty roles, as long as their physician certifies they are medically able to do so.

Other key changes of Chapter 37:

• No coverage for normal retirees: Employees eligible for normal retirement (age 55 or older with more than 20 years of service) are not eligible for continued health insurance. This aligns with existing law that disqualifies these individuals from receiving duty disability pensions.
• Monthly invoice submission: Employees receiving treatment must submit treatment invoices to their employer each month. Since employers must cover costs not paid by insurance, this change ensures timely payments and accurate reimbursement requests.
• Protected leave for treatment: Employers may not require employees to use personal time for treatment-related absences.
• Limits on employer challenges: Employers may not challenge PERA’s duty disability determinations.

View a detailed summary of this legislation in the 2025 Law Summaries.

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