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SF 3541

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 05/19/2022 09:21am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to retirement; general state employees retirement plan; correctional state
employees retirement plan; unclassified state employees retirement program;
legislators retirement plan; State Patrol retirement plan; general employees
retirement plan; public employees police and fire retirement plan; Teachers
Retirement Association; St. Paul Teachers Retirement Fund Association; higher
education individual retirement account plan; reducing employee contribution
rates; increasing postretirement adjustments; modifying vesting and return to work
requirements, decreasing employer contribution rates, and establishing a
supplemental employer contribution for the public employees police and fire
retirement plan; reducing the investment rate of return actuarial assumption;
increasing or adding direct state aids; increasing employer contributions; increasing
the pension adjustment revenue for school districts; appropriating money; amending
Minnesota Statutes 2020, sections 126C.10, subdivision 37; 352.04, subdivision
2; 352.92, subdivision 1; 352B.02, subdivision 1a; 353.01, subdivision 47; 353.27,
subdivision 2; 353.65, subdivisions 2, 3, 3b, by adding a subdivision; 354.42,
subdivisions 2, 3; 354A.12, subdivisions 2a, 3a, 3c; 354A.29, subdivision 7;
354B.23, subdivision 1; 356.215, subdivision 8; 356.415, subdivisions 1, 1c, 1d,
1e; 356.59; Minnesota Statutes 2021 Supplement, section 354A.12, subdivision
1; proposing coding for new law in Minnesota Statutes, chapters 352; 352B; 353;
354.

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

ARTICLE 1

EMPLOYEE CONTRIBUTION RATE DECREASE

Section 1.

Minnesota Statutes 2020, section 352.04, subdivision 2, is amended to read:


Subd. 2.

Employee contributions.

(a) The employee contribution to the fund must be
equal to the following percent of salary:

deleted text begin from July 1, 2014, to June 30, 2018
deleted text end
deleted text begin 5.5
deleted text end
deleted text begin from July 1, 2018, to June 30, 2019
deleted text end
deleted text begin 5.75
deleted text end
deleted text begin afterdeleted text end new text beginfrom July 1, 2019, to new text endJune 30, deleted text begin2019deleted text endnew text begin 2022
new text end
6
new text begin after June 30, 2022
new text end
new text begin 5.75
new text end

(b) These contributions must be made by deduction from salary as provided in subdivision
4.

(c) Contribution increases under paragraph (a) must be paid starting the first day of the
first full pay period after the effective date of the increase.

Sec. 2.

Minnesota Statutes 2020, section 352.92, subdivision 1, is amended to read:


Subdivision 1.

Employee contributions.

(a) Employee contributions of covered
correctional employees must be in an amount equal to the following percent of salary:

deleted text begin from July 1, 2014, to June 30, 2018
deleted text end
deleted text begin 9.1
deleted text end
deleted text begin afterdeleted text endnew text begin from July 1, 2018, tonew text end June 30, deleted text begin2018deleted text endnew text begin 2022
new text end
9.6
new text begin after June 30, 2022
new text end
new text begin 7.5
new text end

(b) These contributions must be made by deduction from salary as provided in section
352.04, subdivision 4.

(c) Contribution increases under paragraph (a) must be paid starting the first day of the
first full pay period after the effective date of the increase.

Sec. 3.

Minnesota Statutes 2020, section 352B.02, subdivision 1a, is amended to read:


Subd. 1a.

Member contributions.

(a) The member contribution is the following
percentage of the member's salary:

deleted text begin from July 1, 2014, to June 30, 2016
deleted text end
deleted text begin 13.4
deleted text end
deleted text begin from July 1, 2016, to June 30, 2018
deleted text end
deleted text begin 14.4
deleted text end
deleted text begin from July 1, 2018, to June 30, 2020
deleted text end
deleted text begin 14.9
deleted text end
deleted text begin after June 30,deleted text endnew text begin from July 1,new text end 2020new text begin, to June 30, 2022
new text end
15.4
new text begin after June 30, 2022
new text end
new text begin 10.5
new text end

(b) These contributions must be made by deduction from salary as provided in section
352.04, subdivision 4.

(c) Contribution increases under paragraph (a) must be paid starting the first day of the
first full pay period after the effective date of the increase.

Sec. 4.

Minnesota Statutes 2020, section 353.27, subdivision 2, is amended to read:


Subd. 2.

General employees retirement plan; employee contribution.

(a) For a basic
member of the general employees retirement plan of the Public Employees Retirement
Association, the employee contribution is 9.10 percent of salary. For a coordinated member
of the general employees retirement plan of the Public Employees Retirement Association,
the employee contribution is the following percentage of salary plus any contribution rate
adjustment under subdivision 3b:

deleted text begin Effective after December 31, 2010
deleted text end
deleted text begin 6.25
deleted text end
deleted text begin Effectivedeleted text endnew text begin fromnew text end January 1, 2015new text begin, to June 30, 2022
new text end
6.5
new text begin after June 30, 2022
new text end
new text begin 6.25
new text end

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

Sec. 5.

Minnesota Statutes 2020, section 353.65, subdivision 2, is amended to read:


Subd. 2.

Employee contribution.

(a) For members other than members who were active
members of the former Minneapolis Firefighters Relief Association on December 29, 2011,
or for members other than members who were active members of the former Minneapolis
Police Relief Association on December 29, 2011, the employee contribution is an amount
equal to the following percentage of the total salary of each member, as follows:

deleted text begin before January 1, 2019
deleted text end
deleted text begin 10.8 percent
deleted text end
deleted text begin from January 1, 2019, through December 31, 2019
deleted text end
deleted text begin 11.3 percent
deleted text end
from January 1, 2020, deleted text beginand thereafterdeleted text endnew text begin through June 30,
2022
new text end
11.8 percent
new text begin after June 30, 2022
new text end
new text begin 9.4 percent
new text end

(b) For members who were active members of the former Minneapolis Firefighters Relief
Association on December 29, 2011, the employee contribution is an amount equal to eight
percent of the monthly unit value under section 353.01, subdivision 10a, multiplied by 80
and expressed as a biweekly amount for each member. The employee contribution made
by a member with at least 25 years of service credit as an active member of the former
Minneapolis Firefighters Relief Association must be deposited in the postretirement health
care savings account established under section 352.98.

(c) For members who were active members of the former Minneapolis Police Relief
Association on December 29, 2011, the employee contribution is an amount equal to eight
percent of the monthly unit value under section 353.01, subdivision 10b, multiplied by 80
and expressed as a biweekly amount for each member. The employee contribution made
by a member with at least 25 years of service credit as an active member of the former
Minneapolis Police Relief Association must be deposited in the postretirement health care
savings account established under section 352.98.

(d) Contributions under this section must be made by deduction from salary in the manner
provided in subdivision 4. Where any portion of a member's salary is paid from other than
public funds, the member's employee contribution is based on the total salary received from
all sources.

Sec. 6.

Minnesota Statutes 2020, section 354.42, subdivision 2, is amended to read:


Subd. 2.

Employee contribution.

(a) The employee contribution to the fund is the
following percentage of the member's salary:

Period
Basic Program
Coordinated Program
from July 1, 2014, through June 30, deleted text begin2023deleted text endnew text begin
2022
new text end
11 percent
7.5 percent
after June 30, deleted text begin2023deleted text endnew text begin 2022
new text end
deleted text begin11.25deleted text end new text begin10.75 new text endpercent
deleted text begin7.75deleted text end new text begin7.25 new text endpercent

(b) When an employee contribution rate changes for a fiscal year, the new contribution
rate is effective for the entire salary paid for each employer unit with the first payroll cycle
reported.

(c) This contribution must be made by deduction from salary. Where any portion of a
member's salary is paid from other than public funds, the member's employee contribution
must be based on the entire salary received.

Sec. 7.

Minnesota Statutes 2021 Supplement, section 354A.12, subdivision 1, is amended
to read:


Subdivision 1.

Employee contributions.

(a) The contribution required to be paid by
each member of the St. Paul Teachers Retirement Fund Association is the percentage of
total salary specified below deleted text beginfor the applicable association and programdeleted text end:

deleted text begin Program
deleted text end
deleted text begin Percentage of Total Salary
deleted text end
deleted text begin St. Paul Teachers Retirement Fund Association
deleted text end
deleted text begin basic program after June 30, 2016
deleted text end
deleted text begin 10 percent
deleted text end
deleted text begin basic program after June 30, 2023
deleted text end
deleted text begin 10.25 percent
deleted text end
deleted text begin coordinated program after June 30deleted text endnew text begin July 1new text end, 2016new text begin,
to June 30, 2022
new text end
7.5 percent
deleted text begin coordinated programdeleted text end after June 30, deleted text begin2023deleted text endnew text begin 2022
new text end
deleted text begin7.75deleted text end new text begin7.25 new text endpercent

(b) Contributions must be made by deduction from salary and must be remitted directly
to the St. Paul Teachers Retirement Fund Association at least once each month.

(c) When an employee contribution rate changes for a fiscal year, the new contribution
rate is effective for the entire salary paid by the employer with the first payroll cycle reported.

Sec. 8.

Minnesota Statutes 2020, section 354B.23, subdivision 1, is amended to read:


Subdivision 1.

Member contribution rate.

(a) Except for a participant described under
paragraph (b), the member contribution rate for participants in the individual retirement
account plan is equal to the coordinated employee contribution rate in section 354.42,
subdivision 2
.

(b) The member contribution rate is the rate described in paragraph (c) for a participant
in the individual retirement account plan who:

(1) achieved tenure or its equivalent at a Minnesota state college or university before
July 1, 2018; or

(2) is an employee in an eligible unclassified administrative position, is not a faculty
member, and first contributed to the individual retirement account plan before July 1, 2018.

(c) The member contribution rate for a participant described in paragraph (b) is the
following percentage of salary:

deleted text begin from July 1, 2019, to June 30, 2020
deleted text end
deleted text begin 5.15
deleted text end
deleted text begin from July 1, 2020, to June 30, 2021
deleted text end
deleted text begin 5.80
deleted text end
from July 1, 2021, to June 30, 2022
6.45
from July 1, 2022, to June 30, 2023
7.10
deleted text begin from July 1, 2023, to June 30, 2024
deleted text end
deleted text begin 7.75
deleted text end

After June 30, deleted text begin2024deleted text endnew text begin 2023new text end, the member contribution rate is the rate specified in paragraph
(a).

Sec. 9. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 8 are effective the day following enactment.
new text end

ARTICLE 2

POSTRETIREMENT ADJUSTMENTS

Section 1.

Minnesota Statutes 2020, section 354A.29, subdivision 7, is amended to read:


Subd. 7.

Postretirement adjustments.

(a) Except as set forth in paragraph (c), each
person who has been receiving an annuity or benefit under the articles of incorporation, the
bylaws, or this chapter, whose effective date of benefit commencement occurred on or
before July 1 of the calendar year immediately before the adjustment, is eligible to receive
an annual postretirement adjustment, effective as of each January 1, as follows:

(1) deleted text beginthere shall be nodeleted text end new text beginthe new text endpostretirement adjustment new text beginis one percent new text endon January 1, deleted text begin2019,
and January 1, 2020
deleted text endnew text begin 2022new text end; and

(2) the postretirement adjustment deleted text beginshall be onedeleted text end new text beginis 1.5 new text endpercent on January 1, deleted text begin2021deleted text endnew text begin 2023new text end,
and each January 1 thereafter.

(b) A postretirement adjustment is to be applied as a permanent increase to the regular
payment of each eligible member on January 1. For any eligible member whose effective
date of benefit commencement occurred after January 1 of the immediately preceding
calendar year, the amount of the postretirement adjustment must be reduced by 50 percent.

(c) Each person who retires on or after July 1, 2024, is entitled to an annual postretirement
adjustment, effective as of each January 1, beginning with the year following the year in
which the member attains normal retirement age.

(d) Paragraph (c) does not apply to members who retire under section 354A.31,
subdivision 6
, paragraph (b), or who retire when the member is at least age 62 and has at
least 30 years of service under section 354A.31, subdivision 7.

Sec. 2.

Minnesota Statutes 2020, section 356.415, subdivision 1, is amended to read:


Subdivision 1.

Annual postretirement adjustments; Minnesota State Retirement
System general state employees retirement plan, legislators retirement plan, and
unclassified state employees retirement program.

(a) Except as set forth in paragraph
(c), recipients of a retirement annuity, disability benefit, or survivor benefit from the general
state employees retirement plan, the legislators retirement plan, or the unclassified state
employees retirement program are entitled to an annual postretirement adjustment, effective
as of each January 1, as follows:

(1) effective January 1, 2019, through December 31, deleted text begin2023deleted text endnew text begin 2022new text end, a postretirement increase
of one percent must be applied each year to the amount of the monthly annuity or benefit
of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at
least 12 full months as of the June 30 of the calendar year immediately before the adjustment;

(2) effective January 1, 2019, through December 31, deleted text begin2023deleted text endnew text begin 2022new text end, for each annuitant or
benefit recipient who has been receiving an annuity or a benefit for at least one full month,
but less than 12 full months as of the June 30 of the calendar year immediately before the
adjustment, a postretirement increase of 1/12 of one percent for each month that the person
has been receiving an annuity or benefit must be applied to the amount of the monthly
annuity or benefit of the annuitant or benefit recipient;

(3) effective January 1, deleted text begin2024deleted text endnew text begin 2023new text end, and thereafter, a postretirement increase of 1.5 percent
must be applied each year to the amount of the monthly annuity or benefit of each annuitant
or benefit recipient who has been receiving an annuity or a benefit for at least 12 full months
as of the June 30 of the calendar year immediately before the adjustment; and

(4) effective January 1, deleted text begin2024deleted text endnew text begin 2023new text end, and thereafter, for each annuitant or benefit recipient
who has been receiving an annuity or a benefit for at least one full month, but less than 12
full months as of the June 30 of the calendar year immediately before the adjustment, an
annual postretirement increase of 1/12 of 1.5 percent for each month that the person has
been receiving an annuity or benefit must be applied to the amount of the monthly annuity
or benefit of the annuitant or benefit recipient.

(b) An increase in annuity or benefit payments under this subdivision must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the covered retirement plan requesting that the increase not be made.

(c) Members who retire on or after January 1, 2024, under the general state employees
retirement plan, the legislators retirement plan, or the unclassified state employees retirement
program are entitled to an annual postretirement adjustment of the member's retirement
annuity, effective as of each January 1, beginning with the year following the year in which
the member attains normal retirement age, as follows:

(1) if a member has been receiving an annuity for at least 12 full months as of the June
30 of the calendar year immediately before the date of the adjustment, a postretirement
increase equal to the percentage specified in paragraph (a), clause (3), must be applied,
effective on January 1, to the amount of the member's monthly annuity;

(2) if a member has been receiving an annuity for at least one full month, but less than
12 full months as of the June 30 of the calendar year immediately before the date of
adjustment, a postretirement increase of 1/12 of the percentage specified in paragraph (a),
clause (4), for each month that the member has been receiving an annuity must be applied,
effective on January 1, to the amount of the member's monthly annuity; or

(3) if a member has been receiving an annuity for fewer than seven months before the
date of adjustment, a postretirement increase shall not be applied until the next January 1
and the amount of the adjustment shall be the amount determined under clause (2).

(d) Paragraph (c) does not apply to members who retire under section 352.116,
subdivision 1
, paragraph (c).

Sec. 3.

Minnesota Statutes 2020, section 356.415, subdivision 1c, is amended to read:


Subd. 1c.

Annual postretirement adjustments; deleted text beginPERA-policedeleted text endnew text begin public employees policenew text end
and firenew text begin retirement plannew text end.

(a) Retirement annuity, disability benefit, or survivor benefit
recipients of the public employees police and fire retirement plan are entitled to an annual
postretirement adjustment, effective as of each January 1, as follows:

(1) new text beginthrough December 31, 2022, new text endfor each annuitant or benefit recipient who will have
been receiving an annuity or benefit for at least 36 full months as of the immediate preceding
June 30, a postretirement increase of one percent must be applied each year to the amount
of the monthly annuity or benefit of the annuitant or benefit recipient; deleted text beginor
deleted text end

(2) new text beginthrough December 31, 2022, new text endfor each annuitant or benefit recipient who has been
receiving deleted text beginthedeleted text end new text beginan new text endannuity or benefit for at least 25 full months, but less than 36 months as of
the immediate preceding June 30, a postretirement increase of 1/12 of one percent for each
full month that the person has been receiving an annuity or benefit during the fiscal year in
which the annuity or benefit was effective must be applied each year to the amount of the
monthly annuity or benefit of the annuitant or benefit recipientdeleted text begin.deleted text endnew text begin;
new text end

new text begin (3) effective January 1, 2023, and thereafter, for each annuitant or benefit recipient who
has been receiving an annuity or benefit for at least 36 full months as of the immediate
preceding June 30, a postretirement increase of 1.5 percent must be applied each year to
the amount of the monthly annuity or benefit of the annuitant or benefit recipient; or
new text end

new text begin (4) effective January 1, 2023, and thereafter, for each annuitant or benefit recipient who
has been receiving an annuity or benefit for at least 25 full months, but less than 36 months
as of the immediate preceding June 30, a postretirement increase of 1/12 of 1.5 percent for
each full month that the person has been receiving an annuity or benefit during the fiscal
year in which the annuity or benefit was effective must be applied to the amount of the
monthly annuity or benefit of the annuitant or benefit recipient.
new text end

(b) An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Public Employees Retirement Association requesting that the
increase not be made.

Sec. 4.

Minnesota Statutes 2020, section 356.415, subdivision 1d, is amended to read:


Subd. 1d.

Teachers Retirement Association annual postretirement adjustments.

(a)
Except as set forth in paragraph (d), recipients of a retirement annuity, disability benefit,
or survivor benefit from the Teachers Retirement Association are entitled to an annual
postretirement adjustment, effective as of each January 1, as follows:

(1) effective January 1, 2019, through December 31, deleted text begin2023deleted text endnew text begin 2022new text end, a postretirement increase
of one percent must be applied each year to the amount of the monthly annuity or benefit
of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at
least 12 full months as of the June 30 of the calendar year immediately before the adjustment;

(2) effective January 1, 2019, through December 31, deleted text begin2023deleted text endnew text begin 2022new text end, for each annuitant or
benefit recipient who has been receiving an annuity or a benefit for at least one full month,
but less than 12 full months as of the June 30 of the calendar year immediately before the
adjustment, a postretirement increase of 1/12 of one percent for each month the person has
been receiving an annuity or benefit must be applied to the amount of the monthly annuity
or benefit of the annuitant or benefit recipient;

(3) effective January 1, deleted text begin2024deleted text endnew text begin 2023new text end, and thereafter, a postretirement increasenew text begin of 1.5 percentnew text end
must be applied each year to the amount of the monthly annuity or benefit of each annuitant
or benefit recipient who has been receiving an annuity or a benefit for at least 12 full months
as of the June 30 of the calendar year immediately before the adjustmentdeleted text begin, at the following
rates:
deleted text endnew text begin; and
new text end

deleted text begin from January 1, 2024, through December 31, 2024
deleted text end
deleted text begin 1.1 percent
deleted text end
deleted text begin from January 1, 2025, through December 31, 2025
deleted text end
deleted text begin 1.2 percent
deleted text end
deleted text begin from January 1, 2026, through December 31, 2026
deleted text end
deleted text begin 1.3 percent
deleted text end
deleted text begin from January 1, 2027, through December 31, 2027
deleted text end
deleted text begin 1.4 percent
deleted text end
deleted text begin from January 1, 2028, and thereafter
deleted text end
deleted text begin 1.5 percent
deleted text end

(4) effective January 1, deleted text begin2024deleted text endnew text begin 2023new text end, and thereafter, for each annuitant or benefit recipient
who has been receiving an annuity or a benefit for at least one full month, but less than 12
full months, as of the June 30 of the calendar year immediately before the adjustment, an
annual postretirement increase of 1/12 of deleted text beginthe applicable percentagedeleted text end new text begin1.5 percent new text endfor each
month that the person has been receiving an annuity or benefit must be applied to the amount
of the monthly annuity or benefit of the annuitant or benefit recipient. deleted text beginThe applicable
percentages are the following:
deleted text end

deleted text begin from January 1, 2024, through December 31, 2024
deleted text end
deleted text begin 1.1 percent
deleted text end
deleted text begin from January 1, 2025, through December 31, 2025
deleted text end
deleted text begin 1.2 percent
deleted text end
deleted text begin from January 1, 2026, through December 31, 2026
deleted text end
deleted text begin 1.3 percent
deleted text end
deleted text begin from January 1, 2027, through December 31, 2027
deleted text end
deleted text begin 1.4 percent
deleted text end
deleted text begin from January 1, 2028, and thereafter
deleted text end
deleted text begin 1.5 percent
deleted text end

(b) An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Teachers Retirement Association requesting that the increase not
be made.

(c) The retirement annuity payable to a person who retires before becoming eligible for
Social Security benefits and who has elected the optional payment as provided in section
354.35 must be treated as the sum of a period-certain retirement annuity and a life retirement
annuity for the purposes of any postretirement adjustment. The period-certain retirement
annuity plus the life retirement annuity must be the annuity amount payable until age 62,
65, or normal retirement age, as selected by the member at retirement, for an annuity amount
payable under section 354.35. A postretirement adjustment granted on the period-certain
retirement annuity must terminate when the period-certain retirement annuity terminates.

(d) Members who retire on or after July 1, 2024, are entitled to an annual postretirement
adjustment of the member's retirement annuity, effective as of each January 1, beginning
with the year following the year in which the member attains normal retirement age, as
follows:

(1) if a member has been receiving an annuity for at least 12 full months as of the June
30 of the calendar year immediately before the date of the adjustment, a postretirement
increase equal to the percentage specified in paragraph (a), clause (3), must be applied,
effective on January 1, to the amount of the member's monthly annuity;

(2) if a member has been receiving an annuity for at least one full month, but less than
12 full months as of the June 30 of the calendar year immediately before the date of
adjustment, a postretirement increase of 1/12 of the applicable percentage specified in
paragraph (a), clause (4), for each month that the member has been receiving an annuity
must be applied, effective on January 1, to the amount of the member's monthly annuity;
or

(3) if a member has been receiving an annuity for fewer than seven months as of the
January 1 of the year following the year in which the member attains normal retirement
age, a postretirement adjustment shall be applied effective as of the next January 1. The
amount of the adjustment shall be determined under clause (2).

(e) Paragraph (d) does not apply to members who retire under section 354.44, subdivision
6
, paragraph (c), clause (3), or who retire when the member is at least age 62 and has at
least 30 years of service under section 354.44, subdivision 6, paragraph (c), (d), (e), or (f),
as applicable.

Sec. 5.

Minnesota Statutes 2020, section 356.415, subdivision 1e, is amended to read:


Subd. 1e.

Annual postretirement adjustments; State Patrol retirement plan.

(a)
Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
retirement plan are entitled to an annual postretirement adjustment, effective as of each
January 1, as follows:

(1) new text beginthrough December 31, 2022, new text enda postretirement increase of one percent must be applied
each year to the monthly annuity or benefit of each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the
calendar year immediately before the adjustment; deleted text beginand
deleted text end

(2) new text beginthrough December 31, 2022, new text endfor each annuitant or benefit recipient who has been
receiving an annuity or a benefit for at least one full month, but less than 12 full months as
of the June 30 of the calendar year immediately before the adjustment, an annual
postretirement increase of 1/12 of one percent for each month that the person has been
receiving an annuity or benefit must be applied to the amount of the monthly annuity or
benefit of each annuitant or benefit recipientdeleted text begin.deleted text endnew text begin;
new text end

new text begin (3) effective January 1, 2023, and thereafter, a postretirement increase of 1.5 percent
must be applied each year to the monthly annuity or benefit of each annuitant or benefit
recipient who has been receiving an annuity or benefit for at least 12 full months as of the
June 30 of the calendar year immediately before the adjustment; and
new text end

new text begin (4) effective January 1, 2023, and thereafter, for each annuitant or benefit recipient who
has been receiving an annuity or benefit for at least one full month, but less than 12 full
months, as of the June 30 of the calendar year immediately before the adjustment, an annual
postretirement increase of 1/12 of 1.5 percent for each month that the person has been
receiving an annuity or benefit must be applied to the amount of the monthly annuity or
benefit of each annuitant or benefit recipient.
new text end

(b) An increase in annuity or benefit payments under this subdivision must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the applicable covered retirement plan requesting that the increase not
be made.

Sec. 6. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 5 are effective the day following final enactment.
new text end

ARTICLE 3

POLICE AND FIRE PLAN EMPLOYER CONTRIBUTION RATE

Section 1.

Minnesota Statutes 2020, section 353.65, subdivision 3, is amended to read:


Subd. 3.

Employer contributionnew text begin and supplemental employer contributionnew text end.

(a) With
respect to members other than members who were active members of the former Minneapolis
Firefighters Relief Association on December 29, 2011, or for members other than members
who were active members of the former Minneapolis Police Relief Association on December
29, 2011, the employer contribution is an amount equal to the deleted text beginfollowingdeleted text end percentage of the
total salary of each member, as follows:

deleted text begin before January 1, 2019
deleted text end
deleted text begin 16.2 percent
deleted text end
deleted text begin from January 1, 2019, through December 31, 2019
deleted text end
deleted text begin 16.95 percent
deleted text end
from January 1, 2020, deleted text beginand thereafterdeleted text endnew text begin through June 30,
2022
new text end
17.7 percent
new text begin from July 1, 2022, and thereafter
new text end
new text begin 14.1 percent
new text end

(b) With respect to members who were active members of the former Minneapolis
Firefighters Relief Association on December 29, 2011, the employer contribution is an
amount equal to the amount of the member contributions under subdivision 2, paragraph
(b).

(c) With respect to members who were active members of the former Minneapolis Police
Relief Association on December 29, 2011, the employer contribution is an amount equal
to the amount of the member contributions under subdivision 2, paragraph (c).

new text begin (d) Effective July 1, 2022, with respect to members other than members described in
paragraphs (b) and (c), the employing governmental subdivision must pay to the public
employees police and fire retirement plan a supplemental employer contribution. The
supplemental employer contribution is 3.6 percent of the total salary of each member. The
supplemental employer contribution remains in effect until the earlier of:
new text end

new text begin (1) December 31 following two consecutive annual actuarial valuations, prepared under
section 356.215 by the actuary retained by the fund under section 356.214, which indicate
that the actuarial value of assets of the fund equals or exceeds 100 percent of the actuarial
accrued liabilities; or
new text end

new text begin (2) July 1, 2048.
new text end

deleted text begin (d)deleted text endnew text begin (e)new text end Contributions under this subdivision must be made from funds available to the
employing new text begingovernmental new text endsubdivision by the means and in the manner provided in section
353.28.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 4

OTHER PERA POLICE AND FIRE PLAN PROVISIONS

Section 1.

Minnesota Statutes 2020, section 353.01, subdivision 47, is amended to read:


Subd. 47.

Vesting.

(a) "Vesting" means obtaining a nonforfeitable entitlement to an
annuity or benefit from a retirement plan administered by the Public Employees Retirement
Association by having credit for sufficient allowable service under paragraph (b), (c), or
(d), whichever applies.

(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan
member of the general employees retirement plan of the Public Employees Retirement
Association:

(1) a public employee who first became a member of the association before July 1, 2010,
is 100 percent vested when the person has accrued credit for not less than three years of
allowable service in the general employees retirement plan; and

(2) a public employee who first becomes a member of the association after June 30,
2010, is 100 percent vested when the person has accrued credit for not less than five years
of allowable service in the general employees retirement plan.

(c) For purposes of qualifying for an annuity or benefit as a member of the local
government correctional service retirement plan:

(1) a public employee who first became a member of the association before July 1, 2010,
is 100 percent vested when the person has accrued credit for not less than three years of
allowable service in the local government correctional service retirement plan; and

(2) a public employee who first becomes a member of the association after June 30,
2010, is vested at the following percentages when the person has accrued credit for allowable
service in the local government correctional service retirement plan, as follows:

(i) 50 percent after five years;

(ii) 60 percent after six years;

(iii) 70 percent after seven years;

(iv) 80 percent after eight years;

(v) 90 percent after nine years; and

(vi) 100 percent after ten years.

(d) For purposes of qualifying for an annuity or benefit as a member of the public
employees police and fire retirement plan:

(1) a public employee who first became a member of the association before July 1, 2010,
is 100 percent vested when the person has accrued credit for not less than three years of
allowable service in the public employees police and fire retirement plan;

(2) a public employee who first deleted text beginbecomesdeleted text end new text beginbecame new text enda member of the association after June
30, 2010, and before July 1, 2014, is vested at the following percentages when the person
has accrued credited allowable service in the public employees police and fire retirement
plan, as follows:

(i) 50 percent after five years;

(ii) 60 percent after six years;

(iii) 70 percent after seven years;

(iv) 80 percent after eight years;

(v) 90 percent after nine years; and

(vi) 100 percent after ten years; deleted text beginand
deleted text end

(3) a public employee who first deleted text beginbecomesdeleted text endnew text begin becamenew text end a member of the association after June
30, 2014, new text beginand is not a member of the association after June 30, 2022, new text endis vested at the following
percentages when the person has accrued credit for allowable service in the public employees
police and fire retirement plan, as follows:

(i) 50 percent after ten years;

(ii) 55 percent after 11 years;

(iii) 60 percent after 12 years;

(iv) 65 percent after 13 years;

(v) 70 percent after 14 years;

(vi) 75 percent after 15 years;

(vii) 80 percent after 16 years;

(viii) 85 percent after 17 years;

(ix) 90 percent after 18 years;

(x) 95 percent after 19 years; and

(xi) 100 percent after 20 or more yearsdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (4) a public employee who first became a member of the association after June 30, 2014,
and who is a member of the association after June 30, 2022, is 100 percent vested when the
person has accrued credit for not less than ten years of allowable service in the public
employees police and fire retirement plan.
new text end

Sec. 2.

new text begin [353.6513] REEMPLOYMENT OF RETIREE.
new text end

new text begin (a) Notwithstanding any state law to the contrary, including section 353.37, if an eligible
person described in paragraph (b) is receiving an annuity from the public employees police
and fire retirement plan, the eligible person may return to employment with a governmental
subdivision on or after the effective date without any reduction or suspension of the person's
annuity.
new text end

new text begin (b) An eligible person is a person who:
new text end

new text begin (1) has been separated from public service for at least 30 days;
new text end

new text begin (2) is returning with the approval of the chief of the police or fire department or director
of the agency to a position that is covered by the public employees police and fire retirement
plan or the State Patrol retirement plan; and
new text end

new text begin (3) if returning to a position covered by the State Patrol retirement plan, has not yet
attained age 60 or the mandatory retirement age specified in section 43A.34, subdivision
4, if later.
new text end

new text begin (c) This section expires December 31, 2032.
new text end

Sec. 3. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective July 1, 2022.
new text end

ARTICLE 5

INVESTMENT RATE OF RETURN ASSUMPTION

Section 1.

Minnesota Statutes 2020, section 356.215, subdivision 8, is amended to read:


Subd. 8.

Actuarial assumptions.

(a) The actuarial valuation must use the applicable
following investment return assumption:

plan
investment return
assumption
general state employees retirement plan
deleted text begin 7.5% deleted text end new text begin 7%
new text end
correctional state employees retirement plan
deleted text begin 7.5 deleted text end new text begin 7
new text end
State Patrol retirement plan
deleted text begin 7.5 deleted text end new text begin 7
new text end
legislators retirement plan, and for the
constitutional officers calculation of total plan
liabilities
0
judges retirement plan
deleted text begin 7.5 deleted text end new text begin 7
new text end
general public employees retirement plan
deleted text begin 7.5 deleted text end new text begin 7
new text end
public employees police and fire retirement plan
deleted text begin 7.5 deleted text end new text begin 7
new text end
local government correctional service retirement
plan
deleted text begin 7.5 deleted text end new text begin 7
new text end
teachers retirement plan
deleted text begin 7.5 deleted text end new text begin 7
new text end
St. Paul teachers retirement plan
deleted text begin 7.5 deleted text end new text begin 7
new text end
Bloomington Fire Department Relief Association
6
local monthly benefit volunteer firefighter relief
associations
5
monthly benefit retirement plans in the statewide
volunteer firefighter retirement plan
6

(b) The actuarial valuation for each of the covered retirement plans listed in section
356.415, subdivision 2, and the St. Paul Teachers Retirement Fund Association must take
into account the postretirement adjustment rate or rates applicable to the plan as specified
in section 354A.29, subdivision 7, or 356.415, whichever applies.

(c) The actuarial valuation must use the applicable salary increase and payroll growth
assumptions found in the appendix to the standards for actuarial work adopted by the
Legislative Commission on Pensions and Retirement pursuant to section 3.85, subdivision
10
. The appendix must be updated whenever new assumptions have been approved or
deemed approved under subdivision 18.

(d) The assumptions set forth in the appendix to the standards for actuarial work continue
to apply, unless a different salary assumption or a different payroll increase assumption:

(1) has been proposed by the governing board of the applicable retirement plan;

(2) is accompanied by the concurring recommendation of the actuary retained under
section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most
recent actuarial valuation report if section 356.214 does not apply; and

(3) has been approved or deemed approved under subdivision 18.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2022.
new text end

Sec. 2.

Minnesota Statutes 2020, section 356.59, is amended to read:


356.59 INTEREST RATES.

Subdivision 1.

Applicable interest rates.

Whenever the payment of interest is required
with respect to any payment, including refunds, remittances, shortages, contributions, or
repayments, the rate of interest is the rate or rates specified in subdivisions 2 to 5 for each
public retirement plan.

Subd. 2.

Minnesota State Retirement System.

The interest rates for all retirement plans
administered by the Minnesota State Retirement System are as follows:

Annual
Monthly
before July 1, 2015
8.5 percent
0.71 percent
from July 1, 2015, to June 30, 2018
8.0 percent
0.667 percent
deleted text begin after June 30,deleted text end new text beginfrom July 1, new text end2018new text begin, to
June 30, 2022
new text end
7.5 percent
0.625 percent
new text begin after June 30, 2022
new text end
new text begin 7.0 percent
new text end
new text begin 0.583 percent
new text end

Subd. 3.

Public Employees Retirement Association.

The interest rates for all retirement
plans administered by the Public Employees Retirement Association are as follows:

before July 1, 2015
8.5 percent
from July 1, 2015, to June 30, 2018
8.0 percent
deleted text begin after June 30,deleted text end new text beginfrom July 1, new text end2018new text begin, to
June 30, 2022
new text end
7.5 percent
new text begin after June 30, 2022
new text end
new text begin 7.0 percent
new text end

Subd. 4.

Teachers Retirement Association.

The interest rates for the retirement plan
administered by the Teachers Retirement Association are as follows:

Annual
Monthly
before July 1, 2018
8.5 percent
0.71 percent
deleted text begin after June 30,deleted text end new text beginfrom July 1, new text end2018new text begin, to
June 30, 2022
new text end
7.5 percent
0.625 percent
new text begin after June 30, 2022
new text end
new text begin 7.0 percent
new text end
new text begin 0.583 percent
new text end

Subd. 5.

St. Paul Teachers Retirement Fund Association.

The interest rates for the
retirement plan administered by the St. Paul Teachers Retirement Fund Association are as
follows:

Annual
Monthly
before July 1, 2015
8.5 percent
0.71 percent
from July 1, 2015, to June 30, 2018
8.0 percent
0.667 percent
deleted text begin after June 30,deleted text end new text beginfrom July 1, new text end2018new text begin, to
June 30, 2022
new text end
7.5 percent
0.625 percent
new text begin after June 30, 2022
new text end
new text begin 7.0 percent
new text end
new text begin 0.583 percent
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2022.
new text end

ARTICLE 6

DIRECT AIDS TO PENSION PLANS

Section 1.

new text begin [352.043] DIRECT STATE AID; GENERAL STATE EMPLOYEES
RETIREMENT FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Aid authorization. new text end

new text begin Beginning in 2022, the state shall pay $8,000,000
annually to the general state employees retirement fund.
new text end

new text begin Subd. 2. new text end

new text begin Aid appropriation. new text end

new text begin The commissioner of management and budget shall pay
the aid amount under subdivision 1 on or before October 1, 2022, and October 1 of each
year thereafter. The amount required is appropriated annually from the general fund to the
commissioner of management and budget.
new text end

new text begin Subd. 3. new text end

new text begin Aid expiration. new text end

new text begin The aid under subdivision 1 continues until the earlier of:
new text end

new text begin (1) December 31 following two consecutive annual actuarial valuations, prepared under
section 356.215 by the actuary retained by the fund under section 356.214, which indicate
that the actuarial value of assets of the fund equals or exceeds 100 percent of the actuarial
accrued liabilities; or
new text end

new text begin (2) July 1, 2048.
new text end

Sec. 2.

new text begin [352.922] DIRECT STATE AID; CORRECTIONAL STATE EMPLOYEES
RETIREMENT FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Aid authorization. new text end

new text begin Beginning in 2022, the state shall pay $6,000,000
annually to the correctional state employees retirement fund.
new text end

new text begin Subd. 2. new text end

new text begin Aid appropriation. new text end

new text begin The commissioner of management and budget shall pay
the aid amount under subdivision 1 on or before October 1, 2022, and October 1 of each
year thereafter. The amount required is appropriated annually from the general fund to the
commissioner of management and budget.
new text end

new text begin Subd. 3. new text end

new text begin Aid expiration. new text end

new text begin The aid under subdivision 1 continues until the earlier of:
new text end

new text begin (1) December 31 following two consecutive annual actuarial valuations, prepared under
section 356.215 by the actuary retained by the fund under section 356.214, which indicate
that the actuarial value of assets of the fund equals or exceeds 100 percent of the actuarial
accrued liabilities; or
new text end

new text begin (2) July 1, 2048.
new text end

Sec. 3.

new text begin [352B.025] DIRECT STATE AID; STATE PATROL RETIREMENT FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Aid authorization. new text end

new text begin Beginning in 2022, the state shall pay $14,500,000
annually to the State Patrol retirement fund.
new text end

new text begin Subd. 2. new text end

new text begin Aid appropriation. new text end

new text begin The commissioner of management and budget shall pay
the aid amount under subdivision 1 on or before October 1, 2022, and October 1 of each
year thereafter. The amount required is appropriated annually from the general fund to the
commissioner of management and budget.
new text end

new text begin Subd. 3. new text end

new text begin Aid expiration. new text end

new text begin The aid under subdivision 1 continues until the earlier of:
new text end

new text begin (1) December 31 following two consecutive annual actuarial valuations, prepared under
section 356.215 by the actuary retained by the fund under section 356.214, which indicate
that the actuarial value of assets of the fund equals or exceeds 100 percent of the actuarial
accrued liabilities; or
new text end

new text begin (2) July 1, 2048.
new text end

Sec. 4.

new text begin [353.275] DIRECT STATE AID; GENERAL EMPLOYEES RETIREMENT
FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Aid Authorization. new text end

new text begin Beginning in 2022, the state shall pay $17,000,000
annually to the general employees retirement fund of the Public Employees Retirement
Association.
new text end

new text begin Subd. 2. new text end

new text begin Aid appropriation. new text end

new text begin The commissioner of management and budget shall pay
the amount under subdivision 1 on or before October 1, 2022, and October 1 of each year
thereafter. The amount required is appropriated annually from the general fund to the
commissioner of management and budget.
new text end

new text begin Subd. 3. new text end

new text begin Aid expiration. new text end

new text begin The aid under subdivision 1 continues until the earlier of:
new text end

new text begin (1) December 31 following two consecutive annual actuarial valuations, prepared under
section 356.215 by the actuary retained by the fund under section 356.214, which indicate
that the actuarial value of assets of the fund equals or exceeds 100 percent of the actuarial
accrued liabilities; or
new text end

new text begin (2) July 1, 2048.
new text end

Sec. 5.

Minnesota Statutes 2020, section 353.65, subdivision 3b, is amended to read:


Subd. 3b.

Direct state aid.

(a) The state shall pay deleted text begin$4,500,000deleted text endnew text begin $9,000,000new text end on deleted text beginOctober
1, 2018, and
deleted text end October 1, deleted text begin2019deleted text endnew text begin 2021new text end, to the public employees police and fire retirement plan.

new text begin (b)new text end By October 1 of each year after deleted text begin2019deleted text endnew text begin 2021new text end, the state shall pay deleted text begin$9,000,000deleted text endnew text begin $84,000,000new text end
to the public employees police and fire retirement plan.

new text begin (c)new text end The commissioner of management and budget shall pay the aid specified in this
subdivision. The amount required is annually appropriated from the general fund to the
commissioner of management and budget.

deleted text begin (b) The aid under paragraph (a) continues until the earlier of:
deleted text end

deleted text begin (1) the first day of the fiscal year following the fiscal year in which the actuarial value
of assets of the fund equals or exceeds 100 percent of the actuarial accrued liabilities as
reported by the actuary retained under section 356.214 in the annual actuarial valuation
prepared under section 356.215; or
deleted text end

deleted text begin (2) July 1, 2048.
deleted text end

Sec. 6.

Minnesota Statutes 2020, section 353.65, is amended by adding a subdivision to
read:


new text begin Subd. 3c. new text end

new text begin Aid expiration. new text end

new text begin The aid under subdivision 3b continues until the earlier of:
new text end

new text begin (1) December 31 following two consecutive annual actuarial valuations, prepared under
section 356.215 by the actuary retained by the fund under section 356.214, which indicate
that the actuarial value of assets of the fund equals or exceeds 100 percent of the actuarial
accrued liabilities; or
new text end

new text begin (2) July 1, 2048.
new text end

Sec. 7.

new text begin [354.434] DIRECT STATE AID; TEACHERS RETIREMENT FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Aid authorization. new text end

new text begin Beginning in 2022, the state shall pay $7,000,000
annually to the Teachers Retirement Association.
new text end

new text begin Subd. 2. new text end

new text begin Aid appropriation. new text end

new text begin Beginning in 2022, the commissioner of management and
budget shall pay the aid amount under subdivision 1 on or before October 1, 2022, and
October 1 of each year thereafter. The amount required is appropriated annually from the
general fund to the commissioner of management and budget.
new text end

new text begin Subd. 3. new text end

new text begin Aid expiration. new text end

new text begin The aid under subdivision 1 continues until the earlier of:
new text end

new text begin (1) December 31 following two consecutive annual actuarial valuations, prepared under
section 356.215 by the actuary retained by the fund under section 356.214, which indicate
that the actuarial value of assets of the fund equals or exceeds 100 percent of the actuarial
accrued liabilities; or
new text end

new text begin (2) July 1, 2048.
new text end

Sec. 8.

Minnesota Statutes 2020, section 354A.12, subdivision 3a, is amended to read:


Subd. 3a.

Direct state aid deleted text beginto first class city teachers retirement fund associationsdeleted text end.

(a)
The state shall pay $2,827,000 to the St. Paul Teachers Retirement Fund Association.

(b) In addition to other amounts specified in this subdivision, the state shall pay
$7,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.

(c) In addition to the amounts specified in paragraphs (a) and (b), the state shall pay
$5,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.

new text begin (d) In addition to the amounts specified in paragraphs (a) to (c), the state shall pay
$12,000,000 as state aid to the St. Paul Teachers Retirement Fund Association beginning
in 2022.
new text end

deleted text begin (d)deleted text end new text begin(e) new text endThe aid under this subdivision is payable October 1 annually. The commissioner
of management and budget shall pay the aid specified in this subdivision. The amount
required is appropriated annually from the general fund to the commissioner of management
and budget.

Sec. 9.

Minnesota Statutes 2020, section 354A.12, subdivision 3c, is amended to read:


Subd. 3c.

Termination of supplemental contributions and direct matching and state
aid.

deleted text begin(a)deleted text end The supplemental contributions payable to the St. Paul Teachers Retirement Fund
Association by Independent School District No. 625 under section 423A.02, subdivision 3,
and the aid under subdivision 3adeleted text begin, paragraphs (a) and (b),deleted text end continue until the earlier of:

(1) deleted text beginthe first day of the fiscal yeardeleted text end new text beginDecember 31 new text endfollowing deleted text beginthe year indeleted text end new text begintwo consecutive
annual actuarial valuations, prepared under section 356.215 by the actuary retained by the
fund under section 356.214,
new text endwhich new text beginindicate that new text endthe actuarial value of assets of the fund
equals or exceeds 100 percent of the actuarial accrued deleted text beginliability as reported by the actuary
retained under section 356.214 in the most recent annual actuarial valuation prepared under
section 356.215
deleted text endnew text begin liabilitiesnew text end; or

(2) July 1, 2048.

deleted text begin (b) The aid under subdivision 3a, paragraph (c), continues until the earlier of:
deleted text end

deleted text begin (1) the first day of the fiscal year following the fiscal year in which the actuarial value
of assets of the fund equals or exceeds 100 percent of the actuarial accrued liabilities as
reported by the actuary retained under section 356.214 in the annual actuarial valuation
prepared under section 356.215; or
deleted text end

deleted text begin (2) July 1, 2048.
deleted text end

Sec. 10. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 8 are effective the day following final enactment.
new text end

ARTICLE 7

TEACHER PLAN EMPLOYER CONTRIBUTION INCREASE AND FUNDING

Section 1.

Minnesota Statutes 2020, section 126C.10, subdivision 37, is amended to read:


Subd. 37.

Pension adjustment revenue.

(a) A school district's pension adjustment
revenue equals the sum of:

(1) the greater of zero or the product of:

(i) the difference between the district's adjustment under Minnesota Statutes 2012, section
127A.50, subdivision 1, for fiscal year 2014 per adjusted pupil unit and the state average
adjustment under Minnesota Statutes 2012, section 127A.50, subdivision 1, for fiscal year
2014 per adjusted pupil unit; and

(ii) the district's adjusted pupil units for the fiscal year; and

(2) the product of the salaries paid to district employees who were members of the
Teachers Retirement Association and the St. Paul Teachersdeleted text begin'deleted text end Retirement Fund Association
for the prior fiscal year and the district's pension adjustment rate for the fiscal year. The
pension adjustment rate for Independent School District No. 625, St. Paul, equals deleted text begin0.84
percent for fiscal year 2019, 1.67 percent for fiscal year 2020, 1.88 percent for fiscal year
2021,
deleted text end 2.09 percent for fiscal year 2022, deleted text begin2.3deleted text end new text begin2.55 new text endpercent for fiscal year 2023, and deleted text begin2.5deleted text end new text begin3.0
new text end percent for fiscal year 2024 and later. The pension adjustment rate for all other districts
equals deleted text begin0.21 percent for fiscal year 2019, 0.42 percent for fiscal year 2020, 0.63 percent for
fiscal year 2021,
deleted text end 0.84 percent for fiscal year 2022, deleted text begin1.05deleted text end new text begin1.3 new text endpercent for fiscal year 2023,
and deleted text begin1.25deleted text end new text begin1.75 new text endpercent for fiscal year 2024 and later.

(b) For fiscal year deleted text begin2025deleted text endnew text begin 2027new text end and later, the state total pension adjustment revenue under
paragraph (a), clause (2), must not exceed the amount calculated under paragraph (a), clause
(2), for fiscal year deleted text begin2024deleted text endnew text begin 2026new text end. The commissioner must prorate the pension adjustment
revenue under paragraph (a), clause (2), so as not to exceed the maximum.

(c) Notwithstanding section 123A.26, subdivision 1, a cooperative unit, as defined in
section 123A.24, subdivision 2, qualifies for pension adjustment revenue under paragraph
(a), clause (2), as if it was a district, and the aid generated by the cooperative unit shall be
paid to the cooperative unit.

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 2020, section 354.42, subdivision 3, is amended to read:


Subd. 3.

Employer.

(a) The regular employer contribution to the fund by Special School
District No. 1, Minneapolis, is an amount equal to the applicable following percentage of
salary of each coordinated member and the applicable percentage of salary of each basic
member specified in paragraph (c).

The additional employer contribution to the fund by Special School District No. 1,
Minneapolis, is an amount equal to 3.64 percent of the salary of each teacher who is a
coordinated member or who is a basic member.

(b) The regular employer contribution to the fund by Independent School District No.
709, Duluth, is an amount equal to the applicable percentage of salary of each old law or
new law coordinated member specified for the coordinated program in paragraph (c).

(c) The employer contribution to the fund for every other employer is an amount equal
to the applicable following percentage of the salary of each coordinated member and the
applicable following percentage of the salary of each basic member:

Period
Coordinated Member
Basic Member
deleted text begin from July 1, 2014, through June 30, 2018
deleted text end
deleted text begin 7.5 percent
deleted text end
deleted text begin 11.5 percent
deleted text end
deleted text begin from July 1, 2018, through June 30, 2019
deleted text end
deleted text begin 7.71 percent
deleted text end
deleted text begin 11.71 percent
deleted text end
deleted text begin from July 1, 2019, through June 30, 2020
deleted text end
deleted text begin 7.92 percent
deleted text end
deleted text begin 11.92 percent
deleted text end
deleted text begin from July 1, 2020, through June 30, 2021
deleted text end
deleted text begin 8.13 percent
deleted text end
deleted text begin 12.13 percent
deleted text end
from July 1, 2021, through June 30, 2022
8.34 percent
12.34 percent
from July 1, 2022, through June 30, 2023
deleted text begin8.55deleted text end new text begin8.8 new text endpercent
deleted text begin12.55deleted text end new text begin12.8 new text endpercent
after June 30, 2023
deleted text begin8.75deleted text end new text begin9.25 new text endpercent
deleted text begin12.75deleted text end new text begin13.25 new text endpercent

(d) When an employer contribution rate changes for a fiscal year, the new contribution
rate is effective for the entire salary paid for each employer unit with the first payroll cycle
reported.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2020, section 354A.12, subdivision 2a, is amended to read:


Subd. 2a.

Employer regular and additional contributions.

(a) The employing units
shall make the following employer contributions to the teachers retirement fund association:

(1) for each coordinated member of the St. Paul Teachers Retirement Fund Association,
the employing unit shall make a regular employer contribution to the retirement fund
association in an amount equal to the designated percentage of the salary of the coordinated
member as provided below:

deleted text begin after June 30, 2016
deleted text end
deleted text begin 6.25 percent
deleted text end
deleted text begin after June 30, 2017
deleted text end
deleted text begin 6.5 percent
deleted text end
deleted text begin after June 30, 2018
deleted text end
deleted text begin 7.335 percent
deleted text end
deleted text begin after June 30, 2019
deleted text end
deleted text begin 8.17 percent
deleted text end
deleted text begin after June 30, 2020
deleted text end
deleted text begin 8.38 percent
deleted text end
after June 30, 2021
8.59 percent
after June 30, 2022
deleted text begin8.8deleted text end new text begin9.05 new text endpercent
after June 30, 2023
deleted text begin9deleted text end new text begin9.5 new text endpercent

(2) for each basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make a regular employer contribution to the respective retirement fund
in an amount according to the schedule below:

deleted text begin after June 30, 2016
deleted text end
deleted text begin 9.75 percent of salary
deleted text end
deleted text begin after June 30, 2017
deleted text end
deleted text begin 10 percent of salary
deleted text end
deleted text begin after June 30, 2018
deleted text end
deleted text begin 10.835 percent of salary
deleted text end
deleted text begin after June 30, 2019
deleted text end
deleted text begin 11.67 percent of salary
deleted text end
deleted text begin after June 30, 2020
deleted text end
deleted text begin 11.88 percent of salary
deleted text end
after June 30, 2021
12.09 percent of salary
after June 30, 2022
deleted text begin12.3deleted text end new text begin12.55 new text endpercent of salary
after June 30, 2023
deleted text begin12.5deleted text end new text begin13 new text endpercent of salary

(3) for each basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make an additional employer contribution to the respective fund in an
amount equal to 3.64 percent of the salary of the basic member;new text begin and
new text end

(4) for each coordinated member of the St. Paul Teachers Retirement Fund Association,
the employing unit shall make an additional employer contribution to the respective fund
in an amount equal to 3.84 percent of the coordinated member's salary.

(b) The regular and additional employer contributions must be remitted directly to the
St. Paul Teachers Retirement Fund Association at least once each month. Delinquent amounts
are payable with interest under the procedure in subdivision 1a.

(c) Payments of regular and additional employer contributions for school district or
technical college employees who are paid from normal operating funds must be made from
the appropriate fund of the district or technical college.

(d) When an employer contribution rate changes for a fiscal year, the new contribution
rate is effective for the entire salary paid by the employer with the first payroll cycle reported.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4. new text beginEDUCATION APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sum indicated is appropriated from the
general fund to the Department of Education for the fiscal year designated. This sum is in
addition to appropriations made for the same purpose in any other law.
new text end

new text begin Subd. 2. new text end

new text begin General education aid. new text end

new text begin For general education aid under Minnesota Statutes,
section 126C.13, subdivision 4:
new text end

new text begin $
new text end
new text begin 12,774,000
new text end
new text begin .....
new text end
new text begin 2023
new text end

new text begin The 2023 appropriation includes $0 for 2022 and $12,774,000 for 2023.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2022.
new text end

ARTICLE 8

APPROPRIATION; LEGISLATIVE COORDINATING COMMISSION

Section 1. new text beginAPPROPRIATION; LEGISLATIVE COORDINATING COMMISSION.
new text end

new text begin $30,000 in fiscal year 2023 is appropriated from the general fund to the Legislative
Coordinating Commission for the Legislative Commission on Pensions and Retirement.
new text end