Public Employees Retirement Association; postretirement adjustments increased for members receiving basic member annuity from general public employees retirement fund and funding provided, and money appropriated.
Impact
In addition to the state funding, HF2713 introduces amendments to the Minnesota Statutes regarding annual postretirement adjustments. It establishes a mechanism for adjusting annuities and benefits based on inflationary measures, specifically tied to the cost-of-living adjustments issued by the federal Social Security Administration. The adjustments for both coordinated and basic member annuities are defined, with specific caps to ensure sustainability while providing retirees with necessary increases in their benefits.
Summary
House File 2713 aims to enhance the postretirement benefits for members receiving a basic annuity from the general public employees retirement fund. The bill mandates that the state allocates an annual payment of $6 million to the fund effective from October 1, 2023, with this payment structure continuing until either the fund's actuarial value surpasses 100% of its accrued liabilities or until July 1, 2048. This financial support is crucial in ensuring that public employees receive adequate adjustments to their retirement benefits over time.
Contention
Notable points of contention surrounding HF2713 revolve around the dependence on state funding and the impacts of these adjustments on the overall budget. Critics may argue that while enhancing retirement benefits is important, such adjustments could strain state resources, especially if the fund does not achieve the projected actuarial health. Proponents likely emphasize the need for fair compensation for public service workers in retirement and view the funding plan as a necessary investment in the welfare of these individuals.
Similar To
Postretirement adjustments for PERA members receiving a basic member annuity from the general public employees retirement fund increase and providing funding
Postretirement adjustments for PERA members receiving a basic member annuity from the general public employees retirement fund increase and providing funding
Public Employees Retirement Association and general employees retirement plan; circumstances under which the additional employer contribution is repealed modified, and postretirement adjustments increased.
Public Employees Retirement Association (PERA) and general employees retirement plan circumstances in which the additional employer contribution is repealed modifications and increasing postretirement adjustments
Teacher Retirement Association and St. Paul Teacher Retirement Fund Association; unreduced retirement requirements amended, deferred annuities augmentation restored, additional service credit provided, postretirement adjustments modified, employer contributions increased, pension adjustment revenue increased for school districts, and money appropriated.
Minnesota State Retirement System; multiplier used to calculate the annuity amount for general state employees retirement plan increased; and postretirement adjustment increased for general state employees retirement plan, legislators retirement plan, and unclassified state employees retirement program.
Teachers Retirement Association; unreduced retirement annuity provided upon reaching age 60 with 30 years of service, early retirement reduction factors modified for annuity commencement before normal retirement age, postretirement adjustments increased, other various retirement provision modified, and money appropriated.
State Patrol retirement plan and public employees police and fire retirement plan provisions modified; employee contribution rates reduced; postretirement adjustments increased; vesting and return to work requirements modified, employer contribution rate decreased, and supplemental employer contribution added; and direct state aids increased and added.