NEAR FINAL DRAFT 9/13/24

                                                                                                                     *241211*

2024 Schedule M1QPEN, Qualified Public Pension Subtraction

Before you complete this schedule, read the instructions on the next page.

Your First Name and Initial                     Last Name                                                            Social Security Number

Your Pension Administrator                      Payer TIN (found on federal Form 1099-R)

You may qualify for this subtraction if all of these are true: 
•   You receive payments or survivor benefits from a qualified public pension plan
•   Your payments are taxable on your federal return 
•   Your income is below a certain threshold based on your filing status (see the table in the instructions)
•   Your payments are not based on service for which Social Security benefits were also earned

       Qualified Pension Plan: Check this box if you are receiving taxable payments from a qualified public pension plan  
       listed in the instructions

Membership Type: Check the boxes that apply to your pension plan membership (see instructions):

       Basic Member: You were a basic member of the pension plan

       Coordinated Member: You were a coordinated member of the pension plan 

       Basic to Coordinated Member Conversion: You were a basic member of the pension plan who was converted to a                                                                                              
       coordinated member during your service

Qualified Public Pension Plan

  1    Enter your total qualified public pension plan payments included in adjusted gross income     . . .  . . . . . . .  . . . . .  . . . .   1   

  2    Enter $13,170 ($26,340 if Married Filing Jointly or Qualifying Surviving Spouse)  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . .   2   

  3    Enter the lesser of line 1 or line 2   . . . . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .   3   

  4    Enter your adjusted gross income from line 1 of Form M1  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . 4   
 
  5    Enter the amount for your filing status:  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . .   5   
       Married Filing Jointly or Qualifying Surviving Spouse: $105,380
       Single or Head of Household: $82,190
       Married Filing Separately: $52,690
       If line 4 is less than or equal to line 5, skip lines 6 through 9 and enter the amount from line 3 on line 10.

  6  Subtract line 5 from line 4   . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  6  

  7  Divide line 6 by 2,000. Round up to the nearest whole number   . . . .  . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .   7   

  8  Multiply line 7 by 10% (.1). Enter the result as a decimal  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  .   8                             .

  9  Multiply line 8 by line 3   . . .  . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .   9      
 10  Subtract line 9 from line 3 and enter the result here and on line 29 of Schedule M1M  
     (if zero or less, enter 0. You do not qualify for this subtraction)  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .    10   

                                                                         9995

2024 Schedule M1QPEN Instructions

Do I qualify?
You may qualify for this subtraction if all of these are true: 
• You receive payments or survivor benefits from a qualified public pension plan
• Your payments are taxable on your federal return 
• Your income is below a certain threshold based on your filing status 
• Your payments are not based on service for which Social Security benefits were also earned
Qualified pension plan: A public pension that is specifically listed in the table below where contributions were made by a basic member. 
Check the Qualified Pension Plan box if you received taxable payments from one of the listed pension plans. You are not eligible for the 
subtraction if all payments were not included in adjusted gross income. 
Basic member: An individual who contributed to the pension without contributing to Social Security at the same time. If you contributed 
to the pension without receiving credit toward Social Security for the same service, check the Basic Member box. If you received survivor 
benefits based on a pension earned by a basic member, check this box as if you were the basic member. Recipients of the federal Civil Service 
Retirement System (CSRS) pension are considered basic members for the purposes of this schedule. 
Coordinated member: An individual who contributed to a pension and Social Security at the same time. If you contributed to the pension 
while receiving credit toward Social Security for the same service, check the Coordinated Member box. If you received survivor benefits 
based on a pension earned by a coordinated member, check this box as if you were the coordinated member. Coordinated members are not 
eligible for the Qualified Public Pension Subtraction unless they were converted from a basic member to a coordinated member during their 
service. The coordinated member may be eligible for the Social Security Subtraction (see Schedule M1M, Income Additions and Subtrac-
tions). Recipients of the Federal Employees Retirement System (FERS) pension are considered coordinated members for the purposes of this 
schedule.
Basic to Coordinated Member Conversion: A pension member whose service began as a basic member may have been converted to a co-
ordinated member during their career. The table below lists dates when these conversions occurred based on their pension plan. If you were 
converted from a basic member to a coordinated member of the pension plan during your service, check the Basic to Coordinated Member 
Conversion box. If you received survivor benefits based on a pension earned by the converted pension member, check this box as if you were 
the pension member. Converted members must complete the Worksheet for Line 1, found later in these instructions, when computing the 
subtraction. 
The table below lists each qualified public pension and the date when basic members were converted to coordinated members:
Qualified Public Pension                                                             Basic to Coordinated Member Conversion Date
Public Employee Retirement Association (PERA)                                        January 1, 1968
Public Employees Police and Fire                                                     All are basic members (no conversion date)
Teachers’ Retirement Association (TRA)                                               January 1, 1960
St. Paul Teachers Retirement Fund                                                    July 1, 1978
State agency law enforcement retirement fund                                         All are basic members (no conversion date)
Local Government Correctional Service Retirement Plan                                April 1, 2004
Legislators plan                                                                     January 1, 2000
Federal government retirement plan                                                   January 1, 1984
Plans administered by another state or its political subdivisions or the District of Contact your pension plan administrator
Columbia where payments are based on service for which Social Security was NOT 
earned.
Note: If your public pension was absorbed by a pension plan administrator listed above, you may still be eligible for the subtraction. Com-
plete Schedule M1QPEN and attach a letter from your current pension plan administrator documenting the name of the old pension admin-
istrator, when the new administrator took over your pension plan, whether you contributed to Social Security based on the same service, and 
when you were converted from a basic member to a coordinated member (if applicable).

Income Limits
If your Adjusted Gross Income (AGI) is greater than the amount below based on your filing status, you do not qualify for this subtraction.
Filing Status               AGI Eligibility Limit
Single                      $101,190
Head of Household           $101,190
Married Filing Jointly      $124,380
Qualifying Surviving Spouse $124,380
Married Filing Separately   $71,690

Line Instructions
Line 1 — Qualified Public Pension Plan Payments
Include your total qualified public pension plan payments that were included in adjusted gross income. If your pension was not federally tax-
able, you do not qualify for the subtraction. If only a portion of your pension was federally taxable, include only the federally taxable portion 
on line 1. If you receive multiple qualified public pensions, include all taxable qualified public pension payments on line 1. If you are filing 
by paper and receive multiple qualified public pensions, include a separate statement listing the name of each pension administrator, their 
payer TIN number (found on Form 1099-R), and the amount of the qualified payments added to line 1 of this schedule. 
If you were converted from a basic member to a coordinated member during your service, you must complete the worksheet below. 
Worksheet for Line 1
1  Enter the number of months you contributed to the qualified public pension plan   ..................................
2  Enter the number of months you contributed to only the qualified public pension plan and not Social Security  
  (see the first table in the instructions for relevant dates) .......................................................
3  Divide step 2 by step 1. Enter the result as a decimal (carry to five decimal places).  ................................
4  Enter your federally taxable payments received from the qualified public pension in 2024  ...........................
5  Multiply step 3 by step 4. Include this amount on line 1 of Schedule M1QPEN ....................................

Note: If you are receiving pension payments as a survivor benefit, complete the worksheet as if you were the member who contributed to the 
pension. 
Line 1 example scenario 1: An employee worked for the federal government as a mechanic for 32 years (384 months), during which they 
contributed to a federal government retirement plan. In four of those years (48 months), they paid into only their pension as a basic member. 
In the remaining 28 years (336 months), they paid into both their pension and Social Security as a coordinated member. They received feder-
ally taxable pension income of $10,000 from their qualified retirement plan. They take 48 months of pension payments and divide it by the 
total 384 months to get 0.125. Then, they multiply this percentage by $10,000 to get $1,250. They will use this amount on line 1 of Schedule 
M1QPEN when computing their subtraction amount.
Line 1 example scenario 2: An employee worked as a corrections officer while contributing to the Local Government Correctional Service 
Retirement Plan until they retired in 2002. They were a basic member for their entire length of service, retiring before they would have been 
converted to a coordinated member in 2004. Their spouse worked as a firefighter while contributing to the Public Employees Police and Fire 
plan until they retired in 2003. They were also a basic member for their entire length of service. Both spouses received taxable payments from 
their respective qualified public pension plans in 2024. The retired corrections officer received $50,000 in taxable qualified pension payments, 
and the firefighter received $30,000 in taxable qualified pension payments. They will use $80,000 on line 1 of Schedule M1QPEN when 
computing their subtraction amount. 

Questions?
Forms and information are available on our website at www.revenue.state.mn.us.
If you have questions:
• Visit our website at www.revenue.state.mn.us and enter Public Pension Subtraction into the Search box
• Send us an email at individual.incometax@state.mn.us
• Call us at 651-296-3781 or 1-800-652-9094