HF 565

as introduced - 89th Legislature (2015 - 2016) Posted on 02/05/2015 01:45pm

A bill for an act
relating to retirement; general state employees retirement plan; correctional state
employees retirement plan; State Patrol retirement plan; public employees police
and fire retirement plan; Teachers Retirement Association; St. Paul Teachers
Retirement Fund Association; modifying the financial sustainability triggers for
postretirement adjustment mechanisms; amending Minnesota Statutes 2014,
sections 354A.29, subdivisions 7, 8, 9; 356.415, subdivisions 1, 1a, 1c, 1d, 1e, 1f.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 354A.29, subdivision 7, is amended to read:

Subd. 7.

Eligibility for payment of postretirement adjustments.

(a) Annually,
after June 30, the board of trustees of the St. Paul Teachers Retirement Fund Association
must determine the amount of any postretirement adjustment using the procedures in this
subdivision and subdivision 8 or 9, whichever is applicable.

(b) On January 1, each deleted text begin eligible deleted text end person who has been receiving an annuity or benefit
under the articles of incorporation, the bylaws, or this chapter deleted text begin for at least three calendar
months as of the end of the last day of the previous calendar year deleted text end new text begin , whose effective date
of benefit commencement occurred on or before July 1 of the calendar year immediately
before the adjustment, new text end is eligible to receive a postretirement increase as specified in
subdivision 8 or 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 2.

Minnesota Statutes 2014, section 354A.29, subdivision 8, is amended to read:

Subd. 8.

Calculation of postretirement adjustments; deleted text begin transitional provision deleted text end new text begin
percentage based new text end .

(a) For purposes of computing postretirement adjustments for eligible
benefit recipients of the St. Paul Teachers Retirement Fund Association, the accrued
liability funding ratio based on the actuarial value of assets of the plan as determined by
the two most recent actuarial valuations prepared under sections 356.214 and 356.215
determines the postretirement increase, as follows:

	Funding ratio	Postretirement increase
	Less than 80 percent	1 percent
	At least 80 percent but less than 90 percent	2 percent

(b) The amount determined under paragraph (a) is the full postretirement increase to
be applied as a permanent increase to the regular payment of each eligible member on
January 1 of the next calendar year. For any eligible member whose effective date of
benefit commencement occurred deleted text begin during deleted text end new text begin after January 1 of new text end the calendar year new text begin immediately
new text end before the postretirement increase is applied, the deleted text begin full increase deleted text end amount new text begin determined under
paragraph (a) new text end must be deleted text begin prorated on the basis of whole calendar quarters in benefit payment
status in the calendar year prior to the January 1 on which the postretirement increase is
applied, calculated to the third decimal place deleted text end new text begin reduced by 50 percent new text end .

(c) If the accrued liability funding ratio based on the actuarial value of assets is at
least 90 percent in two consecutive actuarial valuations, deleted text begin this subdivision expires and deleted text end
subsequent postretirement increases must be paid as specified in subdivision 9.

new text begin (d) If, following a postretirement increase under paragraph (a), the accrued liability
funding ratio, based on the actuarial value of assets, falls below 80 percent for two
consecutive actuarial valuations, the applicable postretirement increase must be reduced
to one percent until January 1 of the calendar year next following the date on which the
requirements for an increase under paragraph (a) are again satisfied.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 3.

Minnesota Statutes 2014, section 354A.29, subdivision 9, is amended to read:

Subd. 9.

Calculation of postretirement adjustments new text begin ; CPI based new text end .

(a) This
subdivision applies if new text begin the requirements of new text end subdivision 8 deleted text begin has expired deleted text end new text begin , paragraph (c), have
been satisfied new text end .

(b) A percentage adjustment must be computed and paid under this subdivision to
eligible persons under subdivision 7. This adjustment is determined by reference to the
Consumer Price Index for urban wage earners and clerical workers all items index as
reported by the Bureau of Labor Statistics within the United States Department of Labor
each year as part of the determination of annual cost-of-living adjustments to recipients of
federal old-age, survivors, and disability insurance. For calculations of postretirement
adjustments under paragraph (c), the term "average third quarter Consumer Price Index
value" means the sum of the monthly index values as initially reported by the Bureau of
Labor Statistics for the months of July, August, and September, divided by three.

(c) Before January 1 of each year, the executive director must calculate the amount
of the postretirement adjustment by dividing the most recent average third quarter index
value by the same average third quarter index value from the previous year, subtract one
from the resulting quotient, and express the result as a percentage amount, which must be
rounded to the nearest one-tenth of one percent.

(d) The amount calculated under paragraph (c) is the full postretirement adjustment
to be applied as a permanent increase to the regular payment of each eligible member on
January 1 of the next calendar year. For any eligible member whose effective date of
benefit commencement occurred deleted text begin during deleted text end new text begin after January 1 of new text end the calendar year new text begin immediately
new text end before the postretirement adjustment is applied, the deleted text begin full increase deleted text end amount new text begin determined under
paragraph (c) new text end must be deleted text begin prorated on the basis of whole calendar quarters in benefit payment
status in the calendar year prior to the January 1 on which the postretirement adjustment is
applied, calculated to the third decimal place deleted text end new text begin reduced by 50 percent new text end .

(e) The adjustment new text begin calculated under paragraph (c) new text end must not be less than zero nor
greater than five percent.

new text begin (f) In the event the accrued liability funding ratio based on the actuarial value of
assets falls below 90 percent for two consecutive actuarial valuations, the applicable
postretirement increase must be determined under subdivision 8 until January 1 of the
calendar year next following the date on which the requirements of subdivision 8,
paragraph (c), are again satisfied.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 4.

Minnesota Statutes 2014, section 356.415, subdivision 1, is amended to read:

Subdivision 1.

Annual postretirement adjustments; generally.

(a) Except as
otherwise provided in subdivision 1a, 1b, 1c, 1d, 1e, or 1f, retirement annuity, disability
benefit, or survivor benefit recipients of a covered retirement plan are entitled to a
postretirement adjustment annually on January 1, as follows:

(1) a postretirement increase of 2.5 percent must be applied each year, effective
January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
has been receiving an annuity or a benefit for at least 12 full months deleted text begin prior to deleted text end new text begin before new text end the
January 1 increase; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or a
benefit amount for at least one full month, new text begin but less than 12 full months as of the current
June 30, new text end an annual postretirement increase of 1/12 of 2.5 percent for each month that the
person has been receiving an annuity or benefit must be applied, effective on January 1
following the calendar year in which the person has been retired for less than 12 months.

(b) The increases provided by this subdivision commence on January 1, 2010.

(c) An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the covered retirement plan requesting that the increase not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 5.

Minnesota Statutes 2014, section 356.415, subdivision 1a, is amended to read:

Subd. 1a.

Annual postretirement adjustments; Minnesota State Retirement
System plans other than State Patrol retirement plan.

(a) Retirement annuity, disability
benefit, or survivor benefit recipients of the legislators retirement plans, including
constitutional officers as specified in chapter 3A, the general state employees retirement
plan, the correctional state employees retirement plan, new text begin and new text end the unclassified state employees
retirement program deleted text begin , and the judges retirement plan deleted text end are entitled to a postretirement
adjustment annually on January 1, as follows:

(1) new text begin for each successive January 1 if the definition of funding stability under
paragraph (b) has not been met as of the prior July 1 for or with respect to the applicable
retirement plan, new text end a postretirement increase of two percent must be applied each year,
effective on January 1, to the monthly annuity or benefit of each annuitant or benefit
recipient who has been receiving an annuity or a benefit for at least 18 full months before
the January 1 increase; and

(2) new text begin for each successive January 1 if the definition of funding stability under
paragraph (b) has not been met as of the prior July 1 for or with respect to the applicable
retirement plan, new text end for each annuitant or benefit recipient who has been receiving an annuity
or a benefit for at least deleted text begin six deleted text end new text begin one full month, but less than 12 new text end full months new text begin as of the current
June 30 new text end , an annual postretirement increase of 1/12 of two percent for each month that the
person has been receiving an annuity or benefit must be applied, effective January 1,
following the calendar year in which the person has been retired for deleted text begin at least six months,
but has been retired for less than 18 deleted text end new text begin 12 new text end months.

(b) deleted text begin The increases provided by this subdivision commence on January 1, 2011. deleted text end
Increases under this subdivision for the general state employees retirement plan, new text begin or new text end the
correctional state employees retirement plan deleted text begin , or the judges retirement plan deleted text end terminate on
December 31 of the calendar year in which two prior consecutive actuarial valuations
prepared by the approved actuary under sections 356.214 and 356.215 and the standards for
actuarial work promulgated by the Legislative Commission on Pensions and Retirement
indicates that the market value of assets of the retirement plan equals or exceeds 90 percent
of the actuarial accrued liability of the retirement plan and increases under subdivision 1
recommence after that date. Increases under this subdivision for the legislators retirement
plan deleted text begin or the elected state officers retirement plan deleted text end new text begin , including the constitutional officers, and
for the unclassified state employees retirement program new text end terminate on December 31 of the
calendar year in which deleted text begin the deleted text end new text begin two prior consecutive new text end actuarial deleted text begin valuation deleted text end new text begin valuations new text end prepared
by the approved actuary under sections 356.214 and 356.215 and the standards for
actuarial work promulgated by the Legislative Commission on Pensions and Retirement
indicates that the market value of assets of the general state employees retirement plan
equals or exceeds 90 percent of the actuarial accrued liability of the retirement plan and
increases under subdivision 1 recommence after that date.

new text begin (c) After having met the definition of funding stability under paragraph (b), the
increase provided in paragraph (a), clauses (1) and (2), rather than an increase under
subdivision 1, for the general state employees retirement plan or the correctional state
employees retirement plan, is again to be applied in a subsequent year or years if the
market value of assets of the applicable plan equals or is less than:
new text end

new text begin (1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
consecutive actuarial valuations; or
new text end

new text begin (2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
recent actuarial valuation.
new text end

new text begin After having met the definition of funding stability under paragraph (b), the increase
provided in paragraph (a), clauses (1) and (2), rather than an increase under subdivision
1, for the legislators retirement plan, including the constitutional officers, and for the
unclassified state employees retirement program, is again to be applied in a subsequent
year or years if the market value of assets of the general state employees retirement plan
equals or is less than:
new text end

new text begin (1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
consecutive actuarial valuations; or
new text end

new text begin (2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
recent actuarial valuation.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end An increase in annuity or benefit payments under this subdivision must be
made automatically unless written notice is filed by the annuitant or benefit recipient
with the executive director of the applicable covered retirement plan requesting that the
increase not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 6.

Minnesota Statutes 2014, section 356.415, subdivision 1c, is amended to read:

Subd. 1c.

Annual postretirement adjustments; PERA-police and fire.

(a)
Retirement annuity, disability benefit, or survivor benefit recipients of the public
employees police and fire retirement plan are entitled to a postretirement adjustment
annually on January 1, deleted text begin until deleted text end new text begin if the definition of new text end funding stability deleted text begin is restored deleted text end new text begin under
paragraph (c) has not been met new text end , as follows:

(1) for each annuitant or benefit recipient whose annuity or benefit effective date is
on or before June 1, 2014, who has been receiving the annuity or benefit for at least 12
full months as of the immediate preceding June 30, an amount equal to one percent in
each year; or

(2) for each annuitant or benefit recipient whose annuity or benefit effective date is
on or before June 1, 2014, who has been receiving the annuity or benefit for at least one
full month, but not less than 11 months, as of the immediate preceding June 30, an amount
equal to 1/12 of one percent for each month of annuity or benefit receipt; and

(3) for each annuitant or benefit recipient whose annuity or benefit effective date is
after June 1, 2014, unless Laws 2014, chapter 296, article 13, section 27, applies, who will
have been receiving an annuity or benefit for at least 36 full months as of the immediate
preceding June 30, an amount equal to one percent; or

(4) for each annuitant or benefit recipient whose annuity or benefit effective date is
after June 1, 2014, unless Laws 2014, chapter 296, article 13, section 27, applies, who
has been receiving the annuity or benefit for at least 25 full months, but less than 36
months as of the immediate preceding June 30, an amount equal to 1/12 of one percent for
each full month of annuity or benefit receipt during the fiscal year in which the annuity
or benefit was effective.

(b) Retirement annuity, disability benefit, or survivor benefit recipients of the public
employees police and fire retirement plan are entitled to a postretirement adjustment
annually on each January 1 following the restoration of funding stability as defined under
paragraph (c) and during the continuation of funding stability as defined under paragraph
(c), as follows:

(1) for each annuitant or benefit recipient who has been receiving the annuity or
benefit for at least 36 full months as of the immediate preceding June 30, an amount
equal to deleted text begin the percentage increase in the Consumer Price Index for urban wage earners and
clerical workers all items index published by the Bureau of Labor Statistics of the United
States Department of Labor between the immediate preceding June 30 and the June 30
occurring 12 months previous, but not to exceed deleted text end 2.5 percent; and

(2) for each annuitant or benefit recipient who has been receiving the annuity
or benefit for at least 25 full months, but less than 36 full months, as of the immediate
preceding June 30, an amount equal to 1/12 of deleted text begin the percentage increase in the Consumer
Price Index for urban wage earners and clerical workers all items index published by
the Bureau of Labor Statistics of the United States Department of Labor between the
immediate preceding June 30 and the June 30 occurring 12 months previous for each full
month of annuity or benefit receipt during the fiscal year in which the annuity or benefit
was effective, but not to exceed 1/12 of deleted text end 2.5 percent for each full month of annuity or
benefit receipt during the fiscal year in which the annuity or benefit was effective.

(c) Funding stability is restored when the market value of assets of the public
employees police and fire retirement plan equals or exceeds 90 percent of the actuarial
accrued liabilities of the applicable plan in the two most recent consecutive actuarial
valuations prepared under section 356.215 and under the standards for actuarial work of
the Legislative Commission on Pensions and Retirement by the approved actuary retained
by the Public Employees Retirement Association under section 356.214.

(d) After having met the definition of funding stability under paragraph (c), a full
or prorated increase, as provided in paragraph (a), clause (1), (2), (3), or (4), whichever
applies, rather than adjustments under paragraph (b), is again applied in a subsequent year
or years if the market value of assets of the public employees police and fire retirement
plan equals or is less than:

(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
consecutive actuarial valuations; or

(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
recent actuarial valuation.

(e) An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Public Employees Retirement Association requesting that the
increase not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 7.

Minnesota Statutes 2014, section 356.415, subdivision 1d, is amended to read:

Subd. 1d.

Teachers Retirement Association annual postretirement adjustments.

(a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers
Retirement Association are entitled to a postretirement adjustment annually on January
1, as follows:

(1) for deleted text begin January 1, 2011, and January 1, 2012, no postretirement increase is payable;
deleted text end

deleted text begin (2) for January 1, 2013, and deleted text end each successive January 1 until funding stability is
restored, a postretirement increase of two percent must be applied each year, effective
on January 1, to the monthly annuity or benefit amount of each annuitant or benefit
recipient who has been receiving an annuity or a benefit for at least 18 full months prior
to the January 1 increase;

deleted text begin (3) deleted text end new text begin (2) new text end for deleted text begin January 1, 2013, and deleted text end each successive January 1 until funding stability is
restored, for each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least deleted text begin six deleted text end new text begin one full month, but less than 12 new text end full months deleted text begin before the January 1
increase deleted text end new text begin as of the current June 30 new text end , an annual postretirement increase of 1/12 of two percent
for each month the person has been receiving an annuity or benefit must be applied,
effective new text begin the new text end January 1 deleted text begin , for which the person has been retired for at least six months but
less than 18 months deleted text end new text begin following the calendar year in which the person retired new text end ;

deleted text begin (4) deleted text end new text begin (3) new text end for each January 1 following the restoration of funding stability, a
postretirement increase of 2.5 percent must be applied each year, effective January 1, to
the monthly annuity or benefit amount of each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least 18 full months prior to the January 1
increase; and

deleted text begin (5) deleted text end new text begin (4) new text end for each January 1 following the restoration of funding stability, for each
annuitant or benefit recipient who has been receiving an annuity or a benefit for at least deleted text begin six deleted text end
new text begin one month, but less than 12 new text end full months deleted text begin before the January 1 increase deleted text end new text begin as of the current
June 30 new text end , an annual postretirement increase of 1/12 of 2.5 percent for each month the
person has been receiving an annuity or benefit must be applied, effective new text begin the new text end January 1 deleted text begin ,
for which the person has been retired for at least six months but less than 18 months deleted text end new text begin
following the calendar year in which the person retired new text end .

(b) Funding stability is restored when the market value of assets of the Teachers
Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities
of the Teachers Retirement Association in the two most recent prior actuarial valuations
prepared under section 356.215 and the standards for actuarial work by the approved
actuary retained by the Teachers Retirement Association under section 356.214.

new text begin (c) After having met the definition of funding stability under paragraph (b), the
increase provided in paragraph (a), clauses (1) and (2), rather than an increase under
subdivision 1, or the increase under paragraph (a), clauses (3) and (4), is again to be applied
in a subsequent year or years if the market value of assets of the plan equals or is less than:
new text end

new text begin (1) 85 percent of the actuarial accrued liabilities of the plan for two consecutive
actuarial valuations; or
new text end

new text begin (2) 80 percent of the actuarial accrued liabilities of the plan for the most recent
actuarial valuation.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Teachers Retirement Association requesting that the increase
not be made.

deleted text begin (d) deleted text end new text begin (e) new text end The retirement annuity payable to a person who retires before becoming
eligible for Social Security benefits and who has elected the optional payment as provided
in section 354.35 must be treated as the sum of a period-certain retirement annuity
and a life retirement annuity for the purposes of any postretirement adjustment. The
period-certain retirement annuity plus the life retirement annuity must be the annuity
amount payable until age 62, 65, or normal retirement age, as selected by the member
at retirement, for an annuity amount payable under section 354.35. A postretirement
adjustment granted on the period-certain retirement annuity must terminate when the
period-certain retirement annuity terminates.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 8.

Minnesota Statutes 2014, section 356.415, subdivision 1e, is amended to read:

Subd. 1e.

Annual postretirement adjustments; State Patrol retirement plan.

(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
retirement plan are entitled to a postretirement adjustment annually on January 1 new text begin if the
definition of funding stability under paragraph (b) has not been met new text end , as follows:

(1) a postretirement increase of one percent must be applied each year, effective on
January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
has been receiving an annuity or a benefit for at least 18 full months before the January 1
increase; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least deleted text begin six deleted text end new text begin one full month, but less than 12 new text end full months new text begin as of the current June
30 new text end , an annual postretirement increase of 1/12 of one percent for each month that the person
has been receiving an annuity or benefit must be applied, effective January 1, following
the calendar year in which the person has been retired for deleted text begin at least six months, but has
been retired for deleted text end less than deleted text begin 18 deleted text end new text begin 12 new text end months.

(b) deleted text begin The increases provided by this subdivision commence on January 1, 2014. deleted text end
Increases under paragraph (a) for the State Patrol retirement plan terminate on December
31 of the calendar year in which two prior consecutive actuarial valuations new text begin for the
plan new text end prepared by the approved actuary under sections 356.214 and 356.215 and the
standards for actuarial work promulgated by the Legislative Commission on Pensions
and Retirement indicates that the market value of assets of the retirement plan equals or
exceeds 85 percent of the actuarial accrued liability of the retirement plan new text begin ; however,
thereafter, increases under paragraph (a) become effective again on the December 31 of
the calendar year in which the actuarial valuation, or prior consecutive actuarial valuations
for the plan prepared by the approved actuary under sections 356.214 and 356.215 and the
standards for actuarial work promulgated by the Legislative Commission on Pensions and
Retirement indicates that the market value of the assets of the retirement plan equals or is
less than 80 percent of the actuarial accrued liability of the retirement plan for two years,
or equals or is less than 75 percent of the actuarial accrued liability of the retirement plan
for one year new text end and increases under paragraph (c) deleted text begin recommence deleted text end new text begin commence new text end after that date.

(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State
Patrol retirement plan are entitled to a postretirement adjustment annually on January
1, as follows:

(1) a postretirement increase of 1.5 percent must be applied each year, effective on
January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
has been receiving an annuity or a benefit for at least 18 full months before the January 1
increase; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least deleted text begin six deleted text end new text begin one full month, but less than 12 new text end full months new text begin as of the current June
30 new text end , an annual postretirement increase of 1/12 of 1.5 percent for each month that the person
has been receiving an annuity or benefit must be applied, effective January 1, following
the calendar year in which the person has been retired for deleted text begin at least six months, but has
been retired for deleted text end less than deleted text begin 18 deleted text end new text begin 12 new text end months.

(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on
December 31 of the calendar year in which two prior consecutive actuarial valuations
prepared by the approved actuary under sections 356.214 and 356.215 and the standards
for actuarial work adopted by the Legislative Commission on Pensions and Retirement
indicates that the market value of assets of the retirement plan equals or exceeds 90
percent of the actuarial accrued liability of the retirement plan and increases under
subdivision 1 recommence after that date.

(e) An increase in annuity or benefit payments under this subdivision must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the applicable covered retirement plan requesting that the increase
not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end

Sec. 9.

Minnesota Statutes 2014, section 356.415, subdivision 1f, is amended to read:

Subd. 1f.

Annual postretirement adjustments; Minnesota State Retirement
System judges retirement plan.

(a) The increases provided under this subdivision begin
on January 1, 2014, and are in lieu of increases under subdivision 1 or 1a for retirement
annuity, disability benefit, or survivor benefit recipients of the judges retirement plan.

(b) Retirement annuity, disability benefit, or survivor benefit recipients of the
judges retirement plan are entitled to a postretirement adjustment annually on January
1, as follows:

(1) a postretirement increase of 1.75 percent must be applied each year, effective
on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
who has been receiving an annuity or a benefit for at least 18 full months before the
January 1 increase; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or a
benefit for at least deleted text begin six deleted text end new text begin one full month, but less than 12 new text end full months new text begin as of the current June
30 new text end , an annual postretirement increase of 1/12 of 1.75 percent for each month that the
person has been receiving an annuity or benefit must be applied, effective January 1,
following the calendar year in which the person has been retired for deleted text begin at least six months,
but has been retired for deleted text end less than deleted text begin 18 deleted text end new text begin 12 new text end months.

(c) Increases under this subdivision terminate on December 31 of the calendar year
in which two prior consecutive actuarial valuations prepared by the approved actuary
under sections 356.214 and 356.215 and the standards for actuarial work promulgated
by the Legislative Commission on Pensions and Retirement indicates that the market
value of assets of the judges retirement plan equals or exceeds 70 percent of the actuarial
accrued liability of the retirement plan. Increases under subdivision 1 or 1a, whichever is
applicable, begin on the January 1 next following that date.

(d) An increase in annuity or benefit payments under this subdivision must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the applicable covered retirement plan requesting that the increase
not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2015.
new text end