MN HF343

Revises the definition of "salary" under Minnesota's Public Employees Retirement Association (PERA) to include wages or periodic compensation paid by the employing governmental subdivision before specified employee deductions.

Expands what counts as salary to include: supplemental retirement plan contributions when established by agreement, payments equivalent to earnings during authorized leaves of absence, and performance or merit bonus payments under written compensation plans.

Clarifies exclusions from salary definition to include: unused leave payouts, overtime/compensatory time paid at separation, severance and retirement incentive payments, workers' compensation, employer-paid fringe benefits, and bonus pay that is not performance-based.

Specifies that grievance settlements or court orders count as salary only if reviewed and approved by the PERA executive director as consistent with the salary definition.

Effective upon final enactment, with one provision regarding employer-paid fringe benefit supplements retroactively effective to August 1, 2007.