Bill > SF3355

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.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3355&ssn=0&y=2025