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New Limits on Public Safety Disability Benefits Enacted
The governor signed the omnibus pensions and retirement bill into law on May 23. The legislation includes League-supported changes to continued health insurance benefits for duty-disabled public safety officers and prohibits settlements in place of health care coverage.
The omnibus pensions and retirement bill, signed by Gov. Tim Walz on May 23, includes a League-supported article that modifies provisions related to duty-disabled police officers and firefighters. Article 15 of Chapter 37 contains changes aimed at improving the public safety duty disability law passed in 2023.
Important changes
One of the most significant updates addresses the employer obligation to continue health insurance benefits for duty-disabled public safety employees. While the continued health insurance benefit under Minnesota Statutes, section 299A.465 is currently reimbursed by the state, future state budget deficits could reduce or eliminate that reimbursement, returning to the unfunded mandate that existed prior to 2023.
Additionally, employers have long expressed concern that the ability for public safety employees to receive continued health care until age 65 provided financial incentives for employees to secure a duty disability retirement. In recent years, public safety duty disability claims have increased and have contributed to the destabilization of the Public Employee Retirement Association Police and Fire (PERA-P&F) fund.
A key component of the new law reduces the duration of continued health insurance to five years, down from providing it until the age 65, which is the age of Medicare eligibility. This change went into effect on May 24.
Other key provisions of Chapter 37:
- Applies to PERA-P&F members. Minnesota State Patrol members are exempt.
- Prospectively limits the health care benefit under Minnesota Statutes, Section 299A.465 to 60 months. The previous law provided the benefit until age 65.
- Allows those who are currently receiving the health care benefit to continue receiving it until age 65.
- Total and permanent disabilities remain covered under existing law (continued health insurance to age 65).
- Employers may not contest PERA’s duty disability determination.
- Health insurance must be accepted or waived; it cannot be exchanged for a monetary settlement.
- Employees eligible for a normal retirement (those over age 55 with more than 20 years of service) are not eligible to receive the continued health insurance benefit. This conforms with the existing law that disallows employees over age 55 with more than 20 years of service from receiving a duty disability pension.
- Employees may access treatment benefits provided under the 2023 law while remaining actively at work.
- Employees cannot be required to use paid leave or sick time for mental health treatment.
- Requires communication between employer and employee regarding health care invoices during mental health treatment.
- Effective upon enactment.
A more detailed summary of this legislation will be available in the 2025 Law Summaries that will be published during summer 2025.