Minnesota House Bill HF1923

Minnesota 2023-2024 Regular Session

• Introduced: 2/16/23
• Refer: 2/16/23

Caption

Public Employees Retirement Association; transfer of service credit from general employees retirement plan to police and fire retirement plan permitted for two employees of Metropolitan Airports Commission.

Impact

If enacted, the bill will amend existing retirement laws in Minnesota, specifically those governing the Public Employees Retirement Association. It permits eligible individuals to make a payment covering the difference between their contribution rates for the two plans. This process allows for the transfer of service credits, thereby enabling these employees to receive the retirement benefits they would have accrued had they been appropriately credited in the police and fire retirement plan.

Summary

House File 1923, authored by Representative Wolgamott, proposes to allow two employees of the Metropolitan Airports Commission to transfer their service credits from the general employees retirement plan to the police and fire retirement plan. This legislative move addresses a specific situation in which these employees were erroneously credited with allowable service in the wrong retirement plan during a defined period between May 2, 2005, and October 28, 2005. The bill seeks to rectify this issue by providing a clear and structured mechanism for such a transfer to occur.

Contention

The bill provides a solution to a specific oversight but could also prompt discussions about broader retirement issues and the management of service credits within public employee retirement systems. Although it addresses a limited scope, potential points of contention may arise from concerns over fairness, the use of public funds to rectify past mistakes, and the implications this might have on future retirement policies. Stakeholders may debate the mechanisms for ensuring that such errors do not affect other employees and how these changes align with the state’s overall retirement system strategy.