HF 1908

as introduced - 89th Legislature (2015 - 2016) Posted on 03/16/2015 03:04pm

A bill for an act
relating to pensions; adjusting benefits for certain former members of a local
salaried police and fire relief association; amending Minnesota Statutes 2014,
section 353.65, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2014, section 353.65, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin Police and fire adjustment. new text end

new text begin (a) The executive director of the Public
Employees Retirement Association shall adjust the service, disability, and surviving
spouse pensions or benefits for any person who was a former member of a local salaried
police or firefighters relief association governed by chapter 423A that consolidated with
the Public Employees Retirement Association Police and Fire Fund under Minnesota
Statutes 2012, chapters 353A and 353B, who retained the benefits under the local police or
firefighters relief association laws. Benefits must be adjusted according to paragraph (b).
new text end

new text begin (b) Effective July 1, 2015, the pension, disability, and survivor benefits of persons
described in paragraph (a) must be adjusted as follows: all persons receiving a service
pension based on 20 years or more of service or a disability pension must have their
benefits increased to $38,000 annually or by 20 percent, whichever amount is less. All
surviving spouses who receive a benefit must have their benefits increased to $30,000
annually or by 20 percent, whichever amount is less.
new text end

new text begin (c) Benefits as adjusted by paragraph (b) must continue to be adjusted on January
1, 2016, according to postretirement adjustments by the Public Employees Retirement
Association Police and Fire Fund.
new text end

new text begin (d) The estimated cost of the benefit improvements in this subdivision is $5,300,000.
In order to fund the benefits provided in this subdivision, the supplemental state aid
authorized in section 423A.022 that would otherwise terminate under section 423A.022,
subdivision 5, must continue for an additional one year and must be payable solely to the
public employees police and fire retirement plan.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end