Bill > HF2821

This bill modifies two key aspects of the Public Employees Retirement Association (PERA) general employees retirement plan. First, it changes the additional employer contribution requirements by inserting a provision that the additional contribution will be repealed once the plan's asset actuarial value reaches 98 percent of its actuarial accrued liability, instead of the previous 100 percent threshold. Second, the bill updates the annual postretirement adjustments (cost-of-living increases) for retirees, lowering the threshold for automatic increases from two percent to one percent of Social Security's cost-of-living adjustment. The bill also introduces a more nuanced maximum percentage increase mechanism, capping the annual increase at 1.75 percent but reducing it to 1.5 percent if the plan's market asset value falls below certain actuarial liability thresholds. These changes aim to provide more predictable and sustainable retirement benefits for public employees while ensuring the long-term financial health of the retirement plan. The modifications will take effect immediately upon enactment, with the postretirement adjustment changes specifically applying to increases on or after January 1, 2026.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2821&ssn=0&y=2025