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MN SF3192

Public Employees Retirement Association (PERA) and general employees retirement plan circumstances in which the additional employer contribution is repealed modifications and increasing postretirement adjustments


summary

Introduced
04/01/2025
In Committee
04/01/2025
Crossed Over
Passed
Dead

Introduced Session

94th Legislature 2025-2026

Bill Summary

A bill for an act relating to retirement; Public Employees Retirement Association; general employees retirement plan; modifying the circumstances under which the additional employer contribution is repealed; increasing postretirement adjustments; amending Minnesota Statutes 2024, sections 353.27, subdivision 3a; 356.415, subdivision 1b.

AI Summary

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 First, it changes the conditions under which an additional employer contribution is repealed by requiring that the plan's assets must reach 98% of its actuarial accrued liability (instead of a previous, unspecified threshold) before the additional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.

Committee Categories

Government Affairs

Sponsors (5)

Last Action

Referred to State and Local Government (on 04/01/2025)

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