Minnesota Legislature
HF 2237
as introduced - 94th Legislature (2025 - 2026) Posted on 04/21/2025 01:44pm
Bill Text Versions
| Engrossments | ||
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| Introduction | Posted on 03/11/2025 |
Current Version - as introduced
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A bill for an act
relating to retirement; Minnesota State Retirement System; increasing the multiplier
used to calculate the annuity amount for the general state employees retirement
plan; increasing the postretirement adjustment for the general state employees
retirement plan, the legislators retirement plan, and the unclassified state employees
retirement program; amending Minnesota Statutes 2024, sections 352.115,
subdivision 3; 356.415, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 352.115, subdivision 3, is amended to read:
Subd. 3.
Retirement annuity formula.
(a) This paragraph, in conjunction with section
352.116, subdivision 1, applies to a person who became a covered employee or a member
of a pension fund listed in section 356.30, subdivision 3, before July 1, 1989, unless
paragraph (b), in conjunction with section 352.116, subdivision 1a, produces a higher annuity
amount, in which case paragraph (b) applies.
new text begin (1) If the employee does not have allowable service after June 30, 2025,new text end the employee's
new text begin retirement annuity is equal to the employee's new text end average salarydeleted text begin , as defined in section 352.01,
subdivision 14a,deleted text end multiplied by 1.2 percent per year of allowable service for the first ten
years and 1.7 percent for each later year of allowable service and pro rata for completed
months less than a full year deleted text begin determines the amount of the retirement annuity to which the
employee is entitleddeleted text end .
new text begin
(2) If the employee has allowable service after June 30, 2025, the employee's retirement
annuity is equal to the employee's average salary multiplied by 1.2 percent per year of
allowable service for the first ten years and 1.7 percent for each later year of allowable
service through June 30, 2025, and 1.9 percent for each year of allowable service after June
30, 2025, and pro rata for completed months less than a full year.
new text end
(b) This paragraph applies to a person who has become at least 55 years old and first
became a covered employee after June 30, 1989, and to any other covered employee who
has become at least 55 years old and whose annuity amount, when calculated under this
paragraph and in conjunction with section 352.116, subdivision 1a, is higher than it is when
calculated under paragraph (a), in conjunction with section 352.116, subdivision 1.
new text begin (1) If the employee does not have allowable service after June 30, 2025,new text end the employee's
new text begin retirement annuity is equal to the employee's new text end average salarydeleted text begin , as defined in section 352.01,
subdivision 14a,deleted text end multiplied by 1.7 percent for each year of allowable service and pro rata
for new text begin completed new text end months less than a full year deleted text begin determines the amount of the retirement annuity
to which the employee is entitleddeleted text end .
new text begin
(2) If the employee has allowable service after June 30, 2025, the employee's retirement
annuity is equal to the employee's average salary multiplied by 1.7 percent for each year of
allowable service through June 30, 2025, and 1.9 percent for each year of allowable service
after June 30, 2025, and pro rata for completed months less than a full year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2025.
new text end
Sec. 2.
Minnesota Statutes 2024, 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) 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:
deleted text begin
(1) effective January 1, 2019, through December 31, 2023, 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;
deleted text end
deleted text begin
(2) effective January 1, 2019, through December 31, 2023, 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;
deleted text end
deleted text begin (3)deleted text end new text begin (1)new text end effective January 1, deleted text begin 2024deleted text end new text begin 2026new text end , and thereafter, a postretirement increase of deleted text begin 1.5deleted text end new text begin
1.75new text end 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
deleted text begin (4)deleted text end new text begin (2)new text end effective January 1, deleted text begin 2024deleted text end new text begin 2026new 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 begin 1.5deleted text end new text begin 1.75new text end 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 deleted text begin covereddeleted text end new text begin Minnesota Statenew text end Retirement deleted text begin plandeleted text end new text begin Systemnew text end requesting that
the increase not be made.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for postretirement adjustments beginning
on or after January 1, 2026.
new text end