Bill

Bill > SF3355


MN SF3355

Public Employees Retirement Association expansion of coverage governing privatization to include governmental subdivisions provision, administrative changes provision, withdrawal liability calculation method revision provision, and annual reporting requirement expansion provision


summary

Introduced
04/09/2025
In Committee
04/09/2025
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; expanding coverage governing privatization to include governmental subdivisions; making administrative changes; revising the method for calculating withdrawal liability; expanding the annual reporting requirement; amending Minnesota Statutes 2024, sections 353F.01; 353F.02, subdivisions 3, 4b, 5a, 6, by adding subdivisions; 353F.025; 353F.03; 353F.04; 353F.05; 353F.051, subdivisions 1, 2; 353F.052; 353F.057; 353F.06; 353F.07; 353F.08; 353F.09; repealing Minnesota Statutes 2024, section 353F.02, subdivision 4a.

AI Summary

This bill expands and updates provisions related to the Public Employees Retirement Association (PERA) regarding privatization of governmental subdivisions. The bill broadens the scope of existing law from focusing solely on medical facilities to include all governmental subdivisions, and establishes new rules for calculating withdrawal liability when a governmental subdivision privatizes. Key provisions include defining new terms like "governmental subdivision" and "privatization", creating a detailed process for calculating withdrawal liability that considers the general plan's funding ratio, and requiring the privatized employer to pay this liability within six months or elect a payment plan. The bill also modifies augmentation rates for privatized employees' deferred annuities, with the augmentation rate depending on the effective date of privatization and the potential financial impact on the retirement fund. Additionally, the bill requires PERA to maintain a public list of privatized employers and their withdrawal liability details, beginning in July 2027. These changes aim to provide more clarity and financial protection for employees and the retirement system when governmental subdivisions transition to private ownership. The bill will be effective July 1, 2027.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Referred to State and Local Government (on 04/09/2025)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...