Office of the Revisor of Statutes
HF 2821
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/26/2025 11:32 a.m.
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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contribution is repealed; increasing postretirement adjustments; amending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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 353.27, subdivision 3a, is amended to read:
Subd. 3a.
Additional employer contribution.
(a) An additional employer contribution
to the general employees retirement fund of the Public Employees Retirement Association
must be made equal to the following applicable percentage of the total salary amount for
"basic members" and for "coordinated members":
| Basic Program |
Coordinated Program |
|||
| Effective before January 1, 2006 |
2.68 |
.43 |
||
| Effective January 1, 2006 |
2.68 |
.5 |
||
| Effective January 1, 2009 |
2.68 |
.75 |
||
| Effective January 1, 2010 |
2.68 |
1 |
These contributions must be made from funds available to the employing subdivision
by the means and in the manner provided in section 353.28.
deleted text begin
(b) The coordinated program contribution rates set forth in paragraph (a) effective for
January 1, 2010, must not be implemented if, following receipt of the July 1, 2009, annual
actuarial valuation report under section 356.215, respectively, the actuarially required
contributions are equal to or less than the total rates under this section in effect as of January
1, 2008.
deleted text end
deleted text begin (c)deleted text end new text begin (b)new text end This subdivision is repealed once the actuarial value of the assets of the general
employees retirement plan of the Public Employees Retirement Association equal or exceednew text begin
98 percent ofnew text end the actuarial accrued liability of the plan as determined by the actuary retained
under sections 356.214 and 356.215. The repeal is effective on the first day of the first full
pay period occurring after March 31 of the calendar year following the issuance of the
actuarial valuation upon which the repeal is based.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2024, section 356.415, subdivision 1b, is amended to read:
Subd. 1b.
Annual postretirement adjustments; deleted text begin PERAdeleted text end new text begin Public Employees Retirement
Associationnew text end ; general employees retirement plan.
(a) Annuities, disability benefits, and
survivor benefits being paid from the general employees retirement plan of the Public
Employees Retirement Association shall be increased effective each January 1 by the
percentage of increase determined under this subdivision. The increase to the annuity or
benefit shall be determined by multiplying the monthly amount of the annuity or benefit by
the percentage of increase specified in paragraph (b), after taking into account any reduction
to the percentage of increase required under paragraph deleted text begin (c)deleted text end new text begin (d)new text end .
(b) The percentage of increase shall be one percent unless the federal Social Security
Administration has announced a cost-of-living adjustment pursuant to United States Code,
title 42, section 415(i), in the last quarter of the preceding calendar year that is greater than
deleted text begin twodeleted text end new text begin onenew text end percent. If the cost-of-living adjustment announced by the federal Social Security
Administration is greater than deleted text begin twodeleted text end new text begin onenew text end percent, the percentage of increase deleted text begin shall be 50 percent
ofdeleted text end new text begin must be the same asnew text end the cost-of-living adjustment announced by the federal Social Security
Administration, but in no event may the percentage of increase exceed deleted text begin 1.5 percentdeleted text end new text begin the
applicable maximum percentage in effect on January 1 under paragraph (c)new text end .
new text begin
(c) The applicable maximum percentage in effect on January 1 is 1.75 percent, unless
either of the following is true, in which case the applicable maximum percentage is 1.5
percent:
new text end
new text begin
(1) the market value of assets equals or is less than 85 percent of the actuarial accrued
liabilities as reported by the plan's actuary in the most recent two consecutive annual actuarial
valuations; or
new text end
new text begin
(2) the market value of assets equals or is less than 80 percent of the actuarial accrued
liabilities as reported by the plan's actuary in the most recent annual actuarial valuation.
new text end
deleted text begin (c)deleted text end new text begin (d)new text end (1) If the recipient of an annuity, disability benefit, or survivor's benefit has been
receiving the annuity or benefit for at least 12 full months as of the June 30 of the calendar
year immediately before the effective date of the increase, there is no reduction in the
percentage of increase.
(2) If the recipient of an annuity, disability benefit, or survivor's benefit has been receiving
the annuity or benefit for at least one month, but less than 12 full months, as of the June 30
of the calendar year immediately preceding the effective date of the increase, the percentage
of increase is multiplied by a fraction, the numerator of which is the number of months the
annuity or benefit was received as of June 30 of the preceding calendar year and the
denominator of which is 12.
deleted text begin (d)deleted text end new text begin (e)new text end An increase in annuity or benefit payments under this deleted text begin sectiondeleted text end new text begin subdivisionnew text end must
be made automatically unless written notice is filed by the 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 for postretirement adjustments beginning
on or after January 1, 2026.
new text end