SF 4721
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/24/2026 10:55 a.m.
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A bill for an act
relating to retirement; Public Employees Retirement Association; local government
correctional service retirement plan; reducing the employee and employer
contribution rates; increasing postretirement adjustments; amending Minnesota
Statutes 2024, sections 353E.03, subdivisions 1, 2; 356.415, subdivision 1g.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 353E.03, subdivision 1, is amended to read:
Subdivision 1.
Member contributions.
A member of the plan shall make an employee
contribution in an amount equal to deleted text begin 6.83deleted text end new text begin six new text end percent of salary.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 2.
Minnesota Statutes 2024, section 353E.03, subdivision 2, is amended to read:
Subd. 2.
Employer contributions.
The employer shall contribute for a member of the
plan an amount equal to deleted text begin 10.25deleted text end new text begin nine new text end percent of salary.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 3.
Minnesota Statutes 2024, section 356.415, subdivision 1g, is amended to read:
Subd. 1g.
Annual postretirement adjustments; deleted text begin PERAdeleted text end new text begin Public Employees Retirement
Association;new text end local government correctional retirement plan.
(a) Annuities, disability
benefits, and survivor benefits being paid from the local government correctional 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 (d).
(b) As of each January 1, The percentage of increase must 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 one percent. If the cost-of-living adjustment announced by the
federal Social Security Administration is greater than one percent, the percentage of increase
must be the same as the cost-of-living adjustment announced by the federal Social Security
Administration, but in no event may the percentage of increase exceed the applicable
maximum percentage in effect on January 1 under paragraph (c).
(c) The applicable maximum percentage in effect on January 1 is deleted text begin 2.5deleted text end new text begin threenew text end percent,
unless either of the following is true, in which case the applicable maximum percentage is
1.5 percent:
(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
(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. deleted text begin If,
on January 1 after a year during which the applicable maximum percentage was 1.5 percent,
neither clause (1) or (2) is true, then the applicable maximum percentage is 2.5 percent.
deleted text end
(d)(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.
(e) 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, 2027.
new text end