SF 5096

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/14/2026 09:28 a.m.

A bill for an act
relating to retirement; establishing the local government probation and
telecommunicator retirement plan; transferring money; appropriating money;
amending Minnesota Statutes 2024, sections 356.30, subdivisions 1, 3, by adding
a subdivision; 356.415, by adding a subdivision; proposing coding for new law as
Minnesota Statutes, chapter 353H.

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

ARTICLE 1

LOCAL GOVERNMENT PROBATION AND TELECOMMUNICATOR
RETIREMENT PLAN

Section 1.

new text begin [353H.001] APPLICATION OF CHAPTER 353.
new text end

new text begin The general provisions of chapter 353 apply to the local government probation and
telecommunicator retirement plan except where otherwise specifically provided in this
chapter.
new text end

Sec. 2.

new text begin [353H.002] POLICY.
new text end

new text begin It is the policy of the legislature that special consideration should be given to the pension
benefits for employees of governmental subdivisions who devote their time and skills to
assisting the community and the courts as probation officers or serving the public and public
safety partners as telecommunicators. Since this work can be hazardous or high stress,
special provisions are made by this chapter for earlier retirement and larger retirement
annuities than are provided to members of the general employees retirement plan under
chapter 353. The additional costs of these benefits are borne initially by the employees.
new text end

Sec. 3.

new text begin [353H.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For purposes of this chapter, unless the language or context
indicates that a different meaning is intended, the following terms have the meanings given.
The definitions in section 353.01 apply to this chapter unless the term is defined in this
section.
new text end

new text begin Subd. 2. new text end

new text begin Executive director. new text end

new text begin "Executive director" means the executive director of the
Public Employees Retirement Association appointed under section 353.03, subdivision 3a.
new text end

new text begin Subd. 3. new text end

new text begin Fund. new text end

new text begin "Fund" means the local government probation and telecommunicator
retirement fund.
new text end

new text begin Subd. 4. new text end

new text begin General plan. new text end

new text begin "General plan" means the general employees retirement plan of
the Public Employees Retirement Association.
new text end

new text begin Subd. 5. new text end

new text begin Member. new text end

new text begin "Member" means an individual identified as a member under section
353H.03 for whom retirement coverage is provided by the plan.
new text end

new text begin Subd. 6. new text end

new text begin Normal retirement age. new text end

new text begin "Normal retirement age" means age 60.
new text end

new text begin Subd. 7. new text end

new text begin Offset amount. new text end

new text begin "Offset amount" means the lesser of $....... or ... percent of the
cost to purchase the amount of past service elected by a member under section 353H.08,
except the offset amount must not exceed the cost to purchase the amount of past service
elected.
new text end

new text begin Subd. 8. new text end

new text begin Past service. new text end

new text begin "Past service" means allowable service credited to a member
before January 1, 2027, and covered by the general plan that would have been service
covered by the local government probation and telecommunicator retirement plan had that
plan been in effect before January 1, 2027.
new text end

new text begin Subd. 9. new text end

new text begin Plan. new text end

new text begin "Plan" means the local government probation and telecommunicator
retirement plan of the Public Employees Retirement Association.
new text end

new text begin Subd. 10. new text end

new text begin Probation officer. new text end

new text begin "Probation officer" means an individual who the employer
certifies, in the form prescribed by the executive director, is a public employee, as defined
in section 353.01 and:
new text end

new text begin (1) is employed as a probation officer by a county, community corrections agency, or
state probation agency and provides community supervision services with direct offender
contact; or
new text end

new text begin (2) directly supervises one or more individuals described in clause (1).
new text end

new text begin Subd. 11. new text end

new text begin Public safety telecommunicator. new text end

new text begin "Public safety telecommunicator" means
an individual who the employer certifies, in the form prescribed by the executive director,
is a public employee, as defined in section 353.01, employed by a primary or secondary
public safety answering point and:
new text end

new text begin (1) serves as a first responder by receiving, assessing, or processing requests for assistance
from the public and other public safety partners and coordinates the appropriate public
safety response;
new text end

new text begin (2) as part of the individual's employment position, is assigned less than 50 percent of
the time to perform employment duties that are other than duties described in clause (1); or
new text end

new text begin (3) directly supervises one or more individuals described in clause (1) or (2).
new text end

new text begin Subd. 12. new text end

new text begin Vesting or vested. new text end

new text begin "Vesting" or "vested" means obtaining or having obtained
a nonforfeitable entitlement to an annuity or benefit under the plan by having earned credit
for not less than three years of allowable service covered by the plan or the general plan.
new text end

Sec. 4.

new text begin [353H.02] ADMINISTRATION AND FUND DISBURSEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Plan administration; fund. new text end

new text begin (a) The plan is established as a separate plan
to be administered by the board of trustees of the association and the executive director.
new text end

new text begin (b) The board of trustees and the executive director must undertake activities in a manner
consistent with chapter 356A.
new text end

new text begin (c) The association must maintain a special fund to be known as the local government
probation and telecommunicator retirement fund.
new text end

new text begin Subd. 2. new text end

new text begin Investment. new text end

new text begin Assets of the fund must be deposited in the Minnesota combined
investment fund as provided in section 11A.14, if applicable, or otherwise invested under
section 11A.23.
new text end

new text begin Subd. 3. new text end

new text begin Fund disbursement restricted. new text end

new text begin (a) The fund may be disbursed only for the
purposes provided for in this chapter.
new text end

new text begin (b) The proportional share of the necessary and reasonable administrative expenses of
the association and any benefits provided in this chapter must be paid from the fund.
Retirement annuities, disability benefits, survivor benefits, and any refunds of accumulated
deductions may only be paid from the fund after those needs have been certified by the
executive director.
new text end

new text begin (c) The amounts necessary to make the payments from the fund are annually appropriated
from the fund for those purposes.
new text end

Sec. 5.

new text begin [353H.03] MEMBERSHIP.
new text end

new text begin (a) The members of the plan are probation officers and public safety telecommunicators.
new text end

new text begin (b) A probation officer or public safety telecommunicator who first became a public
employee or a member of a pension fund listed in section 356.30, subdivision 3, before July
1, 1989, is not eligible to participate as a member of the plan.
new text end

Sec. 6.

new text begin [353H.04] CONTRIBUTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Member contributions. new text end

new text begin (a) A member must make employee contributions
equal to 8.82 percent of salary.
new text end

new text begin (b) Employee contributions must be made by deduction from the member's salary, as
defined in section 353.01, subdivision 10, in the manner provided in section 353.27,
subdivision 4. If any portion of a member's salary is paid from a source other than public
funds, the member's employee contribution must be based on the total salary received by
the member from all sources.
new text end

new text begin Subd. 2. new text end

new text begin Employer contributions. new text end

new text begin (a) The employer of a member must make employer
contributions equal to 7.5 percent of salary.
new text end

new text begin (b) Employer contributions must be made from money available to the employing
subdivision by the means and in the manner provided in section 353.28.
new text end

new text begin Subd. 3. new text end

new text begin Deposit of contributions. new text end

new text begin Employee contributions under subdivision 1, employer
contributions under subdivision 2, and other amounts authorized by law, including investment
return on invested fund assets, must be deposited in the fund.
new text end

new text begin Subd. 4. new text end

new text begin Collection, correction, and reporting of contributions. new text end

new text begin The requirements
and procedures of sections 353.27 and 353.28 apply to employee and employer contributions
under this section.
new text end

Sec. 7.

new text begin [353H.05] RETIREMENT ANNUITY.
new text end

new text begin Subdivision 1. new text end

new text begin Normal retirement annuity. new text end

new text begin After termination of public service, a
member who has attained at least normal retirement age and is vested is entitled, upon
application, to a normal retirement annuity. The normal retirement annuity is equal to the
member's average salary multiplied by 1.9 percent for each year of allowable service.
new text end

new text begin Subd. 2. new text end

new text begin Optional annuity; bounce-back annuity. new text end

new text begin (a) Instead of a normal retirement
annuity under subdivision 1, a member may elect to receive an optional annuity under
section 353.30, subdivision 3.
new text end

new text begin (b) A bounce-back annuity under section 353.30, subdivisions 3a and 3c, applies to an
annuity under this section or a disability benefit under section 353H.06.
new text end

new text begin Subd. 3. new text end

new text begin Early retirement annuity. new text end

new text begin After termination of public service, a member who
is vested and at least 55 years of age, but not yet normal retirement age, is entitled, upon
application, to an early retirement annuity that is actuarially equivalent to the normal
retirement annuity.
new text end

new text begin Subd. 4. new text end

new text begin Allowable service in other retirement plans. new text end

new text begin If a member has earned allowable
service in the general plan, the public employees police and fire retirement plan, or the
public employees local government correctional service retirement plan before or after
participation under this chapter, the retirement annuity under the plan or plans must be
computed in accordance with the formula specified in sections 353.29 and 353.30, 353.651,
or 353E.04, whichever applies.
new text end

new text begin Subd. 5. new text end

new text begin Application, annuity starting date, and annuity duration. new text end

new text begin Upon application
under section 353.29, subdivision 4, the retirement annuity under this section begins as
provided in section 353.29, subdivision 7. The retirement annuity is payable for the life of
the recipient or in accordance with the terms of any optional annuity form selected by the
member.
new text end

new text begin Subd. 6. new text end

new text begin Payment of annuities and benefits earned under the general plan. new text end

new text begin The
executive director must pay a retirement annuity or benefit as provided under chapter 353
to a member of the plan from the assets of the fund if the member was transferred from the
general plan to the plan on January 1, 2027, and had allowable service under the general
plan.
new text end

new text begin Subd. 7. new text end

new text begin Postretirement adjustment eligibility. new text end

new text begin An annuity under this section is eligible
for postretirement adjustments under section 356.415.
new text end

Sec. 8.

new text begin [353H.06] DISABILITY BENEFITS.
new text end

new text begin A vested member who becomes totally and permanently disabled as defined under section
353.01, subdivision 19, before normal retirement age is entitled to a disability benefit on
the same basis as a member of the general plan under sections 353.031, 353.33, and 353.335.
new text end

Sec. 9.

new text begin [353H.07] SURVIVOR BENEFITS.
new text end

new text begin Upon the death of a member, survivor benefits are payable as provided under section
353.32 on the same basis as a member of the general plan.
new text end

Sec. 10.

new text begin [353H.08] PURCHASE OF CREDIT FOR PAST SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin Purchase of credit for past service. new text end

new text begin (a) A member is entitled to elect a
onetime purchase of credit for periods of past service to be added to the member's allowable
service covered by this section and used in calculating the member's retirement annuity.
The member must repay any refunds of employee contributions previously received from
the general plan before making a purchase of past service credit under this section.
new text end

new text begin (b) A member may request an estimate of the cost of a service credit purchase under
this paragraph.
new text end

new text begin (1) A member may file a request with the executive director for an estimate of the
purchase price for up to three different periods of past service by filing an application on a
form approved by the executive director.
new text end

new text begin (2) The member must file the request for an estimate prior to filing an election to purchase
past service under paragraph (c).
new text end

new text begin (3) The member must submit with the estimate request payment of the administrative
fee in the amount of $250 to cover the cost of preparing the estimates. If the member proceeds
with the purchase, the executive director must credit the administrative fee toward the
purchase price.
new text end

new text begin (4) The executive director must estimate the purchase price using the assumptions and
applying the offset amount as directed under subdivision 2 for the periods of past service
requested by the member and provide the estimates to the member.
new text end

new text begin (c) To purchase credit for past service, a member must file an application with the
executive director on a form approved by the executive director before the annuity starting
date of the member's retirement annuity or benefit. The application must:
new text end

new text begin (1) include documentation of the member's eligibility to make the purchase, signed
written permission to allow the executive director to request and receive verification of
applicable facts and eligibility requirements from the member's employer, and any other
relevant information the executive director may require;
new text end

new text begin (2) state the amount of credit for past service the member plans to purchase and be
accompanied by a certification from one or more employers that the past service fulfills the
requirements under section 353H.01, subdivision 8; and
new text end

new text begin (3) if the member did not previously pay the administrative fee under paragraph (b),
include payment of the administrative fee of $250. If the member proceeds with the purchase,
the executive director must credit the administrative fee toward the purchase price.
new text end

new text begin (d) The executive director must apply the assumptions and offset amount under
subdivision 2 to calculate the purchase price and notify the member. If the member elects
to make the purchase of credit for past service, the member must arrange for the transfer of
pretax funds from another retirement plan. Payment must be made in one lump sum before
the annuity starting date of the member's retirement annuity or benefit.
new text end

new text begin (e) Upon receipt of payment, the executive director must:
new text end

new text begin (1) direct the transfer of the offset amount from the local government probation and
telecommunicator past service account established under subdivision 3 to the fund; and
new text end

new text begin (2) grant the member service credit for the period of past service for which credit was
purchased.
new text end

new text begin Subd. 2. new text end

new text begin Determination of past service purchase price. new text end

new text begin (a) The executive director
must calculate the purchase price for the period of past service elected by the member. The
purchase price is an amount equal to the actuarial present value, on the date of payment, of
the amount of the additional retirement annuity obtained by the additional service credit
being purchased minus the offset amount.
new text end

new text begin (b) The executive director must calculate the purchase price by:
new text end

new text begin (1) using the investment return assumption specified in section 356.215, subdivision 8,
and the mortality table in effect for the general plan;
new text end

new text begin (2) assuming continuous future service in the plan until the plan's minimum requirements
for normal retirement, or retirement with an annuity unreduced for retirement at an early
age, are met with the additional service credit purchased;
new text end

new text begin (3) assuming a full-time equivalent salary or actual salary, whichever is greater, and a
future salary history that includes annual salary increases at the applicable salary increase
rate for the plan; and
new text end

new text begin (4) reducing the amount determined under clauses (1) to (3) by the offset amount.
new text end

new text begin Subd. 3. new text end

new text begin Local government probation and telecommunicator past service account
established. new text end

new text begin (a) The local government probation and telecommunicator past service account
is created in the special revenue fund.
new text end

new text begin (b) The executive director must use the money in the local government probation and
telecommunicator past service account established under paragraph (a) to transfer amounts
required by subdivision 1, paragraph (e), until the balance in the account is zero.
new text end

Sec. 11. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 10 are effective January 1, 2027.
new text end

ARTICLE 2

MIXED SERVICE APPROACH FOR CALCULATING ANNUITIES

Section 1.

Minnesota Statutes 2024, section 356.30, subdivision 1, is amended to read:

Subdivision 1.

Eligibility; computation of annuity.

(a) Notwithstanding any provisions
of the laws governing the covered retirement plans listed in subdivision 3 new text begin and except as
provided in subdivision 1a new text end , a person may elect to receive, upon retirement, a retirement
annuity from each covered retirement plan, subject to the provisions of paragraph (b), if the
person has:

(1) allowable service in any two or more of the covered plans;

(2) at least one-half year of allowable service in each covered plan, based on the allowable
service in each plan;

(3) total allowable service that equals or exceeds the longest service credit vesting
requirement of the applicable retirement plan; and

(4) not begun to receive an annuity from any covered plan or made application for
benefits from each applicable plan and the retirement annuity effective dates of each plan
are within a one-year period.

(b) If all requirements in paragraph (a) have been satisfied, the retirement annuity from
each plan must be based upon the allowable service, accrual rates, and average salary in the
applicable plan except as further specified or modified in the following clauses:

(1) the laws governing annuities must be the law in effect on the date of termination
from the last period of public service under a covered retirement plan with which the person
earned a minimum of one-half year of allowable service credit during that employment;

(2) the average salary used to calculate the annuity for each formula plan must be based
on the employee's highest five successive years of covered salary during the entire service
in covered plans;

(3) the accrual rates under each plan must be the percentages prescribed by each plan's
formula in effect for the respective years of allowable service from one plan to the next,
recognizing all previous allowable service with the other covered plans;

(4) the allowable service in all the covered plans must be combined in determining
eligibility for and the application of each plan's provisions with respect to reduction in the
annuity amount for retirement prior to normal retirement age; and

(5) the annuity amount payable for any allowable service under a nonformula plan that
is a covered plan must not be affected, but such service and covered salary must be used in
the above calculation.

(c) If a person eligible for an annuity under paragraph (a) from each covered plan
terminates all public service, the deferred annuity must be augmented from the date of
termination until the earlier of:

(1) the effective date of retirement; or

(2) December 31, 2018, for the Minnesota State Retirement System and the Public
Employees Retirement Association or June 30, 2019, for the Teachers Retirement Association
and the St. Paul Teachers Retirement Association.

A deferred annuity must not be augmented after the applicable dates under clause (2).
The appropriate rate of augmentation is the rate in effect on the date on which the person
entered into public employment and subsequently adjusted according to the laws governing
each covered plan, as applicable.

(d) This section does not apply to any person whose final termination from the last public
service under a covered plan was before May 1, 1975.

(e) For the purpose of computing annuities under this section:

(1) the judges retirement fund accrual rate must not exceed 3.2 percent per year of service
for any year of service or fraction thereof;

(2) the public employees police and fire plan and the State Patrol retirement plan accrual
rate must not exceed 3.0 percent per year of service for any year of service or fraction
thereof;

(3) the legislators retirement plan accrual rate must not exceed 2.5 percent, but this limit
does not apply to the adjustment provided under section 3A.02, subdivision 1, paragraph
(c); and

(4) any other covered plan's accrual rate must not exceed 2.7 percent per year of service
for any year of service or fraction thereof.

(f) Any period of time for which a person has credit in more than one of the covered
plans must be used only once for the purpose of determining total allowable service.

(g) If the period of duplicated service credit is more than one-half year, or the person
has credit for more than one-half year, with each of the plans, each plan must apply its
formula to a prorated service credit for the period of duplicated service based on a fraction
of the salary on which deductions were paid to that fund for the period divided by the total
salary on which deductions were paid to all plans for the period.

(h) If the period of duplicated service credit is less than one-half year, or when added
to other service credit with that plan is less than one-half year, the service credit must be
ignored and a refund of contributions made to the person in accord with that plan's refund
provisions.

Sec. 2.

Minnesota Statutes 2024, section 356.30, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Exceptions for certain covered plans. new text end

new text begin (a) A person meets the requirement
of subdivision 1, paragraph (a), clause (1), and does not need to meet the requirements of
subdivision 1, paragraph (a), clauses (2) and (4), to calculate a retirement annuity pursuant
to this section if the person is eligible to receive retirement annuities from:
new text end

new text begin (1) both of the covered plans specified in subdivision 3, clauses (1) and (2);
new text end

new text begin (2) both of the covered plans specified in subdivision 3, clauses (1) and (13); or
new text end

new text begin (3) the covered plan specified in subdivision 3, clause (12), for allowable service earned
under the general employees retirement plan and the local government probation and
telecommunicator retirement plan if the person was transferred from the general employees
retirement plan to the local government probation and telecommunicator retirement plan
on January 1, 2027.
new text end

new text begin (b) This paragraph applies to a person who is eligible to receive retirement annuities
from the covered plans specified in subdivision 3, clauses (1) and (2), and any other covered
plan and who elects to calculate the retirement annuities as follows:
new text end

new text begin (1) for the retirement annuities from the covered plans specified in subdivision 3, clauses
(1) and (2), the person does not need to meet the requirements of subdivision 1, paragraph
(a), clauses (2) and (4), and may begin to receive one of the annuities and defer receiving
the other annuity; and
new text end

new text begin (2) for the retirement annuity from another covered plan, the person is entitled to have
the retirement annuity from the other covered plan calculated under this section if the person
meets the requirements of subdivision 1, paragraph (a), clauses (2) and (4), and the person
has not begun to receive an annuity from the other covered plan or made application for
benefits from the other covered plan, and the retirement annuity effective dates of either of
the covered plans specified in subdivision 3, clauses (1) and (2), and the other covered plan
are within a one-year period.
new text end

new text begin (c) This paragraph applies to a person who is eligible to receive retirement annuities
from the covered plans specified in subdivision 3, clauses (1) and (13), and any other covered
plan and who elects to calculate the retirement annuities as follows:
new text end

new text begin (1) for the retirement annuities from the covered plans specified in subdivision 3, clauses
(1) and (13), the person does not need to meet the requirements of subdivision 1, paragraph
(a), clauses (2) and (4), and may begin to receive one of the annuities and defer receiving
the other annuity; and
new text end

new text begin (2) for the retirement annuity from another covered plan, the person is entitled to have
the retirement annuity from the other covered plan calculated under this section if the person
meets the requirements of subdivision 1, paragraph (a), clauses (2) and (4), and the person
has not begun to receive an annuity from the other covered plan or made application for
benefits from the other covered plan, and the retirement annuity effective dates of either of
the covered plans specified in subdivision 3, clauses (1) and (13), and the other covered
plan are within a one-year period.
new text end

new text begin (d) This paragraph applies to a person who is eligible to receive retirement annuities
from the covered plan specified in subdivision 3, clause (12), for allowable service earned
under the general employees retirement plan, the local government probation and
telecommunicator retirement plan, and any other covered plan, and who elects to calculate
the retirement annuities as follows:
new text end

new text begin (1) for the retirement annuities from the covered plan specified in subdivision 3, clause
(12), the person does not need to meet the requirements of subdivision 1, paragraph (a),
clauses (2) and (4), and may begin to receive a retirement annuity for either the allowable
service under the general employees retirement plan or the local government probation and
telecommunicator retirement plan and defer receiving the other annuity; and
new text end

new text begin (2) for the retirement annuity from another covered plan, the person is entitled to have
the retirement annuity from the other covered plan calculated under this section if the person
meets the requirements of subdivision 1, paragraph (a), clauses (2) and (4), and the person
has not begun to receive an annuity from the other covered plan or made application for
benefits from the other covered plan, and the retirement annuity effective dates of the covered
plan specified in subdivision 3, clause (12), and the other covered plan are within a one-year
period.
new text end

new text begin (e) Subdivision 1, paragraph (b), clause (1), does not apply if a person is eligible to
receive retirement annuities from the covered plans as specified in paragraph (a). Instead,
an annuity from a covered plan specified in paragraph (a) must be calculated under the law
in effect on the date of termination of public service covered by the covered plan from which
the annuity is received.
new text end

Sec. 3.

Minnesota Statutes 2024, section 356.30, subdivision 3, is amended to read:

Subd. 3.

Covered plans.

This section applies to the following retirement plans:

(1) the general state employees retirement plan of the Minnesota State Retirement System,
established under chapter 352;

(2) the correctional state employees retirement plan of the Minnesota State Retirement
System, established under chapter 352;

(3) the unclassified employees retirement program, established under chapter 352D;

(4) the State Patrol retirement plan, established under chapter 352B;

(5) the legislators retirement plan, established under chapter 3A, including constitutional
officers as specified in that chapter;

(6) the general employees retirement plan of the Public Employees Retirement
Association, established under chapter 353;

(7) the public employees police and fire retirement plan of the Public Employees
Retirement Association, established under chapter 353;

(8) the local government correctional service retirement plan of the Public Employees
Retirement Association, established under chapter 353E;

(9) the Teachers Retirement Association, established under chapter 354;

(10) the St. Paul Teachers Retirement Fund Association, established under chapter 354A;
deleted text begin and
deleted text end

(11) the judges retirement fund, established by chapter 490 deleted text begin . deleted text end new text begin ;
new text end

new text begin (12) the local government probation and telecommunicator retirement plan of the Public
Employees Retirement Association, established under chapter 353H; and
new text end

new text begin (13) the special coverage subplans, established under section 352.85, 352.86, 352.87,
or 352.88.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective January 1, 2027.
new text end

ARTICLE 3

POSTRETIREMENT ADJUSTMENTS

Section 1.

Minnesota Statutes 2024, section 356.415, is amended by adding a subdivision
to read:

new text begin Subd. 1h. new text end

new text begin Annual postretirement adjustments; Public Employees Retirement
Association; local government probation and telecommunicator plan. new text end

new text begin (a) Annuities,
disability benefits, and survivor benefits paid from the local government probation and
telecommunicator retirement plan of the Public Employees Retirement Association must
be increased, effective as of January 1, each year by the percentage of increase determined
under this subdivision. The increase to the annuity or benefit must 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 or
increase required under paragraph (d).
new text end

new text begin (b) As of January 1, 2027, and each January 1 thereafter, the percentage of increase is
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. The
percentage of increase must not exceed the applicable maximum percentage under paragraph
(c).
new text end

new text begin (c) On January 1 each year, the applicable maximum percentage is 1.75 percent. The
applicable maximum percentage is 1.5 percent, if:
new text end

new text begin (1) the market value of assets is equal to or 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 is equal to or 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

new text begin (d)(1) If the recipient of an annuity, disability benefit, or survivor benefit has been
receiving the annuity or benefit for at least 12 months as of June 30 of the calendar year
immediately preceding the effective date of the increase, there is no reduction in the
percentage of increase.
new text end

new text begin (2) If the recipient of an annuity, disability benefit, or survivor benefit has been receiving
the annuity or benefit for at least one month, but less than 12 months, as of June 30 of the
calendar year immediately preceding the effective date of the increase, the percentage of
increase is multiplied by a ratio of the number of months the annuity or benefit was received
as of June 30 of the preceding calendar year to 12.
new text end

new text begin (e) An increase in annuity or benefit payments under this subdivision 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 end

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

ARTICLE 4

TRANSFER OF ASSETS BETWEEN PLANS

Section 1. new text begin TRANSFER OF ASSETS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, unless the language or
context indicates that a different meaning is intended, the following terms have the meanings
given.
new text end

new text begin (b) "Executive director" means the executive director of the Public Employees Retirement
Association appointed under Minnesota Statutes, section 353.03, subdivision 3a.
new text end

new text begin (c) "General plan" means the general employees retirement plan of the Public Employees
Retirement Association.
new text end

new text begin (d) "Probation and telecommunicator plan" means the local government probation and
telecommunicator retirement plan of the Public Employees Retirement Association.
new text end

new text begin Subd. 2. new text end

new text begin Transfer of assets. new text end

new text begin (a) No later than 15 days after January 1, 2027, the assets
attributable to the members of the general plan whose retirement plan coverage is transferred
from the general plan to the probation and telecommunicator plan on January 1, 2027, must
be transferred from the general employees retirement fund to the local government probation
and telecommunicator retirement fund.
new text end

new text begin (b) The executive director must direct the actuary retained by the Public Employees
Retirement Association under Minnesota Statutes, section 356.214, subdivision 1, to calculate
the amount of assets to be transferred under paragraph (a). The amount of assets to be
transferred must be calculated as provided in the applicable appendix to the standards for
actuarial work adopted under Minnesota Statutes, section 3.85, subdivision 10.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027.
new text end

ARTICLE 5

ONETIME TRANSFER AND APPROPRIATION

Section 1. new text begin ONETIME TRANSFER AND APPROPRIATION.
new text end

new text begin (a) $....... in fiscal year 2027 is transferred from the general fund to the local government
probation and telecommunicator past service account established under Minnesota Statutes,
section 353H.08, subdivision 3. This is a onetime transfer.
new text end

new text begin (b) Money in the local government probation and telecommunicator past service account
is appropriated to the board of trustees of the Public Employees Retirement Association to
reduce the costs for members who elect to purchase credit for past service under Minnesota
Statutes, section 353H.08. This is a onetime appropriation.
new text end