Bill > SF3192

This bill modifies two aspects of the Public Employees Retirement Association (PERA) general employees retirement plan. First, it changes the conditions under which an additional employer contribution is repealed by requiring that the plan's assets must reach 98% of its actuarial accrued liability (instead of a previous, unspecified threshold) before the additional contribution can be eliminated. Second, the bill adjusts the annual postretirement adjustments (cost-of-living increases) for retirees. Under the new provisions, retirees will receive a 1% increase each January, with the potential for a higher increase tied to the Social Security Administration's cost-of-living adjustment, but capped at 1.75% instead of the previous 1.5%. The bill also introduces new conditions that could limit the maximum increase to 1.5%: if the plan's market value of assets is 85% or less of its actuarial accrued liabilities over two consecutive years, or if the assets are 80% or less of liabilities in a single year. The postretirement adjustment changes will take effect on January 1, 2026, and the additional employer contribution provision becomes effective immediately after the bill is enacted.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3192&ssn=0&y=2025