On March 27, 2025, the Minnesota State Legislature introduced Senate Bill 2980, a legislative proposal aimed at amending provisions related to employee participation in retirement plans, particularly for city managers and certain firefighters. The bill seeks to clarify and streamline the process for employees of the St. Paul Port Authority and city managers to elect participation in the general employees retirement plan and the defined contribution plan.

Key provisions of Senate Bill 2980 include amendments to Minnesota Statutes 2024, specifically sections 353D.02, which detail the eligibility and election process for employees. Notably, the bill allows employees of the St. Paul Port Authority to opt into the retirement plan within the first 30 days of employment, with contributions deducted from their salaries starting from the first pay period. Similarly, city managers who initially opted out of the retirement plan will have a 60-day window to elect participation, with their contributions also beginning in the subsequent pay period.

The bill also addresses volunteer firefighters, allowing those not covered by existing retirement plans to elect participation within the same 30-day timeframe. This inclusion aims to provide greater retirement security for these essential service members.

Debate surrounding Senate Bill 2980 has focused on its implications for local government budgets and the potential increase in retirement benefits for public employees. Some lawmakers express concern over the financial impact on municipalities, while supporters argue that enhancing retirement options is crucial for attracting and retaining talent in public service roles.

The bill is set to take effect on July 1, 2025, if passed, and could have significant social implications by improving the financial security of public employees and volunteers. As discussions continue, stakeholders are closely monitoring the bill's progress, with potential amendments and further debates anticipated in the coming weeks. The outcome of Senate Bill 2980 may set a precedent for future legislative efforts aimed at reforming public employee retirement benefits in Minnesota.