Public Employees Retirement association medical facilities privatization and withdraw liability for privatizing medical facilities calculations modifications
Impact
If enacted, SF4606 would significantly influence existing state laws that govern the public retirement system, particularly as it relates to medical facilities. The amendments aim to streamline the process and provide clarity on how withdrawal liabilities will be calculated and managed when a public medical facility privatizes. This is meant to ensure that employees transitioning from public to private employment retain their rights under the PERA program, a provision that is critical for safeguarding the benefits of affected workers.
Summary
Senate File 4606 (SF4606) addresses the modification of policies surrounding the Public Employees Retirement Association (PERA) in the context of medical facilities undergoing privatization. The bill introduces amendments to various sections of Minnesota Statutes related to the eligibility determination and calculation of withdrawal liabilities for medical facilities that transition from being governmental subdivisions to privatized entities. Key terms such as 'privatization' and 'medical facility' are clearly defined within the bill, emphasizing the implications for both employees affected by such transitions and the PERA itself.
Contention
Discussions surrounding SF4606 have highlighted points of contention regarding the adequacy of protections for employees during privatization. Opponents argue that the provisions in the bill may favor the interests of privatized entities over those of employees, potentially putting retirement benefits at risk. Supporters, however, assert that the bill provides necessary modifications to ensure the financial integrity of PERA in light of changing healthcare landscapes. Additionally, concerns have been raised about the administrative burden on entities that must comply with the new regulations, which could affect how medical facilities navigate their operations during privatization.
Similar To
Public Employees Retirement Association; calculation of withdrawal liability for privatizing medical facilities modified, and report required.
Public Employees Retirement Association expansion of coverage governing privatization to include governmental subdivisions provision, administrative changes provision, withdrawal liability calculation method revision provision, and annual reporting requirement expansion provision
Administrative changes made to the statutes governing the retirement plans administered by the Minnesota State Retirement System, the Public Employees Retirement Association, and the Teachers Retirement Association; and experience requirements modified for a Teachers Retirement Association executive director.
Public Employees Retirement Association expansion of coverage governing privatization to include governmental subdivisions provision, administrative changes provision, withdrawal liability calculation method revision provision, and annual reporting requirement expansion provision
State Board of Investment investing in certain assets that exclude Minnesota-based energy or natural resources companies or Minnesota-based agricultural or livestock companies prohibition; divestment of these assets requirement; financial services discrimination prohibition
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Municipal approval of guideway plans required, municipalities allowed to revoke approval, and requesting federal funds prohibited until municipal approval is received.