Bill > SF1937

This bill restores augmentation (the process of increasing deferred retirement benefits) for public employees who left their jobs before January 1, 2019, across several Minnesota public retirement systems. Specifically, the bill modifies existing statutes for state employees, public employees, teachers, and St. Paul teachers to reinstate augmentation rates that were previously reduced or eliminated. For employees who became public servants before July 1, 2006, the bill reinstates augmentation rates ranging from 2-5% compounded annually, depending on the employee's age and the time period. For employees who joined after June 30, 2006, different augmentation rates apply. The key change is that for employees who terminated service after December 31, 2018 (or June 30, 2019 for teachers), the augmentation rate will return to previous levels instead of being zero. The bill also includes a retroactive implementation provision that requires retirement system executives to recalculate and potentially adjust pension amounts for retirees who started receiving pensions on or after January 1, 2019, offering them the option of a lump sum payment to make up for the previous reduction in augmentation. This legislation aims to provide more favorable retirement benefits for public employees who left their jobs before the recent cuts to augmentation rates.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1937&ssn=0&y=2025