Minnesota Senate Bill SF3169

Minnesota 2023-2024 Regular Session

• Introduced: 3/30/23
• Refer: 3/30/23

Caption

Amending eligibility to permit local government officials to participate in public employees defined contribution plan

Impact

The proposed changes are set to modernize and expand access to retirement benefits for local government officials, reinforcing the intention to include a broader range of public service roles within the retirement ecosystem. This bill seeks to rectify gaps where local officials were unable to participate in their pension plans, thus promoting equity among government employees in terms of retirement benefits. It is anticipated that the bill, once enacted, will provide local government officials with financial security and encourage participation in public service roles that were traditionally excluded from such plans.

Summary

SF3169 addresses the eligibility criteria for local government officials to participate in the public employees defined contribution plan. The bill amends relevant sections of the Minnesota Statutes to explicitly allow appointed local government officials to join the plan, which was previously limited primarily to elected officials. Additionally, the legislation provides provisions for retroactive participation, which allows officials impacted by the changes in eligibility to benefit from participation effective from a specified date, potentially dating back to positions held since January 1, 2020.

Contention

Discussions surrounding SF3169 highlight potential contention over the fiscal implications and administrative logistics of expanding the defined contribution plan. Opponents may raise concerns regarding the financial sustainability of the pension fund given the increased number of participants and their contributions, particularly whether local governments can afford the matching contributions mandated by the bill. Moreover, there might be resistance from those who argue that the bill complicates existing retirement plans and potentially creates disparities among different classes of local officials.