MN HF2640

Amends Minnesota Statutes 2010, section 471.975 to modify how school districts calculate and limit pay differentials for National Guard and reserve component members on active duty.

Requires school districts to calculate pay differentials by comparing daily base military pay rates to daily school district pay rates, multiplied by the number of contract days missed due to military service, rather than using the previous methodology.

Establishes a special service members' aggregate salary savings account funded by the positive difference between what the district would have paid the deployed employee and what it pays for a substitute, with combined funds used to fully or partially pay salary differentials for all eligible deployed employees.

Limits a school district's obligation to pay salary differentials to the amount of money available in the special account, effective July 1, 2012 for employees on active duty after that date.

Requires school districts to continue employee health and dental coverage and employer contributions until the employee is covered by armed forces benefits, and permits employees to continue dependent coverage and pretax accounts at their own expense.