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HF 1291

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/18/2021 03:31pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to retirement; Minnesota State Retirement System judges retirement plan;
reducing the postretirement adjustment and eliminating the triggers that would
increase the postretirement adjustment upon attainment of specified funding
thresholds; amending Minnesota Statutes 2020, section 356.415, subdivision 1f.

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

Section 1.

Minnesota Statutes 2020, section 356.415, subdivision 1f, is amended to read:


Subd. 1f.

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

(a) new text begin Recipients of a new text end retirement annuity, disability benefit, or survivor
benefit deleted text begin recipients ofdeleted text end new text begin from new text end the judges retirement plan are entitled to an annual postretirement
adjustment, effective as of each January 1deleted text begin if the definition of funding stability under
paragraph (b) has not been met
deleted text end , as follows:

(1) new text begin through December 31, 2021, new text end a postretirement increase of 1.75 percent must be applied
each year 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 as of the June 30 of the
calendar year immediately before the adjustment; deleted text begin and
deleted text end

(2) new text begin through December 31, 2021, new text end for each annuitant or benefit recipient who has been
receiving an annuity or a benefit for at least one full month, but less than 12 full months as
of the June 30 of the calendar year immediately before the adjustment, 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 to the amount of the monthly annuity or
benefit deleted text begin of each annuitant or benefit recipient.deleted text end new text begin ;
new text end

new text begin (3) effective January 1, 2022, and thereafter, a postretirement increase of 1.5 percent
must be applied each year 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 as of the
June 30 of the calendar year immediately before the adjustment; and
new text end

new text begin (4) effective January 1, 2022, and thereafter, for each annuitant or benefit recipient who
has been receiving an annuity or a benefit for at least one full month, but less than 12 full
months as of the June 30 of the calendar year immediately before the adjustment, 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 to the amount of the monthly annuity or
benefit.
new text end

deleted text begin (b) Increases under paragraph (a) 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 and increases under paragraph (c) begin after that date.
deleted text end

deleted text begin (c) Retirement annuity, disability benefit, or survivor benefit recipients of the judges
retirement plan are entitled to a postretirement adjustment annually, effective as of each
January 1 if the definition of funding stability under paragraph (d) has not been met, as
follows:
deleted text end

deleted text begin (1) a postretirement increase of two percent must be applied each year 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 as of the June 30 of the calendar year immediately
before the adjustment; and
deleted text end

deleted text begin (2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit
for at least one full month, but less than 12 full months as of the June 30 of the calendar
year immediately before the adjustment, 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 to the amount of the monthly annuity or benefit of the annuitant or benefit recipient.
deleted text end

deleted text begin (d) Increases under paragraph (c) terminate on December 31 of the calendar year in
which two prior consecutive actuarial valuations prepared by the approved actuary under
section 356.214 and the standards for actuarial work promulgated by the Legislative
Commission on Pensions and Retirement indicate that the market value of assets of the
judges retirement plan equals or exceeds 90 percent of the actuarial accrued liability of the
retirement plan and increases under paragraph (e) begin after that date.
deleted text end

deleted text begin (e) Retirement annuity, disability benefit, or survivor benefit recipients of the judges
retirement plan are entitled to a postretirement adjustment annually, effective as of each
January 1, as follows:
deleted text end

deleted text begin (1) a postretirement increase of 2.5 percent must be applied each year 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 as of the June 30 of the calendar year immediately
before the adjustment; and
deleted text end

deleted text begin (2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit
for at least one full month, but less than 12 full months as of the June 30 of the calendar
year immediately before the adjustment, 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 to the amount of the monthly annuity or benefit of the annuitant or benefit recipient.
deleted text end

deleted text begin (f)deleted text end new text begin (b) 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, 2021.
new text end