MN HF4663

Restricts military salary differential payments to only those situations where state employee earnings exceed active military base pay, with payments made at regular pay intervals or as a lump sum for back pay.

Limits salary differential payments to four years from the date of active service reporting, plus any additional legally required service time, and requires applications be filed no later than two years after completion of active service.

Defines "salary differential" as the difference between the employee's average monthly gross earnings from state employment (over the last three months prior to military service) and their monthly base military pay, including any salary adjustments they would have received during authorized leave.

Expands the definition of "eligible member" to include members of nonmilitary reserve components of uniformed services, not just National Guard and armed forces reserves, provided they were state employees when taking authorized leave.

Cancels all debt incurred by current or former state employees prior to the bill's enactment date that resulted from overpayment of military salary differential benefits.