HF 2236

as introduced - 90th Legislature (2017 - 2018) Posted on 03/08/2017 11:29am

A bill for an act
relating to retirement; adjusting benefits for certain former members and surviving
spouses of former members of a local salaried police and fire relief association;
amending Minnesota Statutes 2016, section 353.651, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2016, section 353.651, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Former local police and paid fire relief association postretirement
adjustment. new text end

new text begin (a) The executive director of the Public Employees Retirement Association
shall adjust the service pension, disability benefit, or surviving spouse benefit for any person
who was a former member of a local salaried police or firefighters relief association that
was governed by Minnesota Statutes 2012, section 69.77, that consolidated with the public
employees police and fire retirement plan under Minnesota Statutes 2012, chapters 353A
and 353B, and who elected to retain or whose benefit was a result of an election to retain
the calculation of the service pension, disability benefit, or surviving spouse benefit under
the former local police or firefighters relief association laws, articles of incorporation, and
bylaws. The postretirement adjustment must be according to paragraph (b).
new text end

new text begin (b) Effective July 1, 2017, the service pension, disability benefit, or surviving spouse
benefit of persons described in paragraph (a) must be adjusted as follows:
new text end

new text begin (1) all persons receiving a service pension based on 20 years or more of service or a
disability benefit must have their benefits increased to $38,000 annually or by 20 percent,
whichever amount is less; and
new text end

new text begin (2) all surviving spouses who receive a benefit must have their benefits increased to
$30,000 annually or by 20 percent, whichever is less.
new text end

new text begin (c) Benefits as adjusted by paragraph (b) must continue to be adjusted on January 1,
2018, and each successive January 1, by the postretirement adjustment rate under section
356.451, subdivision 1e.
new text end

new text begin (d) The estimated increase in the actuarial accrued liability of the public employees
police and fire retirement plan for the postretirement adjustments in this subdivision is
$8,490,000, as of July 1, 2014. The state shall make an annual payment each July 1 to the
association in an amount necessary to amortize the actuarial accrued liability in ten
substantially equal annual installments, over a period that begins July 1, 2017, and ends
with a final payment on July 1, 2026. The actuarial accrued liability and the annual amount
shall be redetermined by the executive director of the association to take into account fewer
annual payments, changes in actuarial assumptions, and other factors deemed relevant by
the executive director. The executive director shall notify the state of the redetermined
annual amount by June 1 each year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
the postretirement adjustment under paragraph (b) is first payable July 1, 2017.
new text end