Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF5073

Introduced
3/18/24  

Caption

PERA public employees defined contribution plan electing to participate requirements modifications

Impact

The bill is expected to have a significant impact on retirement benefits for city managers, as it provides them with an option that was previously unavailable. It aims to attract individuals to city management positions by offering them a choice in their retirement planning. The onus is placed on city managers to make this election within a set timeframe after their employment begins, emphasizing individual responsibility in retirement planning. The bill also repeals certain sections of Minnesota Statutes 2022 that previously governed these retirement options, streamlining the process for city managers.

Summary

S.F. 5073 modifies the requirements for participation in the Public Employees Retirement Association (PERA) defined contribution plan, particularly affecting city managers and local government officials. It permits city managers employed by statutory and home rule cities to make a one-time, irrevocable election to exclude themselves from the general employees retirement plan of the PERA. This change allows city managers to opt out of conventional retirement benefits and instead participate in a defined contribution plan, thereby granting them more flexibility regarding their retirement savings.

Contention

Notable points of contention surrounding S.F. 5073 include concerns regarding the adequacy of retirement savings for city managers who choose this new path. Critics may argue that shifting to a defined contribution structure poses risks, as it requires individuals to manage their retirement savings and investments, potentially leading to insufficient funds later in life. Proponents, however, assert that the ability to exclude mandatory participation in a traditional pension plan allows for increased financial autonomy and potentially better retirement outcomes if managed well. The debate reflects broader discussions on public sector retirement benefits and the balance between personal choice and collective responsibility.

Companion Bills

MN HF4899

Similar To Public Employees Retirement Association defined contribution plan; requirements for electing to participate in plan modified.

Previously Filed As

MN HF4899

Public Employees Retirement Association defined contribution plan; requirements for electing to participate in plan modified.

MN HF1669

Public employees defined contribution plan; eligibility to permit appointed local government officials to participate amended, and retroactive participation permitted.

MN HF2487

Public employees defined contribution plan; eligibility to permit appointed local government officials to participate amended, and retroactive participation permitted.

MN SF3169

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

MN SF2980

Public Employees Retirement Association provisions modifications

MN HF2386

Administrative changes made to statutes governing the retirement plans administered by the Public Employees Retirement Association, monthly salary threshold requirements clarified, 60-day requirement for filing an election with the association added, and other retirement provisions modified.

MN SF4759

Supplemental retirement plans requirements modifications; employer matching contributions on accounts of employee's qualified student loan payments under Secure 2.0 authorization

MN SF2897

Eligibility amendment to permit appointed local government officials to participate in contribution plan

MN HF4656

Supplemental retirement plan requirements revised, and employer matching contributions on account of an employee's qualified student loan payments under Secure 2.0 allowed.

MN SF1742

Administrative changes to the statutes governing the retirement plans administered by the Public Employees Retirement Association

Similar Bills

MN HF4899

Public Employees Retirement Association defined contribution plan; requirements for electing to participate in plan modified.

MN HF5040

Pensions supplemental budget bill.

MN SF4643

Omnibus Pension bill

MN HF5245

Supreme Court and district courts funding and related policy changes provided, State Board of Civil Legal Aid established, Safe at Home program certification modified, restorative process provided for certain acts, and money appropriated.

SD HB1029

Update provisions of the South Dakota Retirement System.

MN HF5216

Judiciary, public safety, and corrections supplemental budget bill.

AZ SB1148

CORP; defined contributions

MN SF3467

Pensions provisions modification