1.1 A bill for an act
1.2 relating to retirement; public employees police and fire retirement plan; state patrol
1.3 retirement plan; increasing postretirement adjustments; decreasing the waiting
1.4 period for a postretirement adjustment for the public employees police and fire
1.5 retirement plan; amending Minnesota Statutes 2024, section 356.415, subdivisions
1.6 1c, 1e.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2024, section 356.415, subdivision 1c, is amended to read:
1.9 Subd. 1c.Annual postretirement adjustments; PERA-police public employees police
1.10and fire retirement plan.(a) Retirement annuity, disability benefit, or survivor benefit
1.11recipients of the public employees police and fire retirement plan are entitled to an annual
1.12postretirement adjustment, effective as of each January 1, as follows: equal to the percentage
1.13of increase determined under this subdivision. The increase to the annuity or benefit must
1.14be determined by multiplying the monthly amount of the annuity or benefit by the percentage
1.15of increase specified in paragraph (b), after taking into account any reduction to the
1.16percentage of increase required under paragraph (c).
1.17 (b) The percentage of increase must be one percent unless the federal Social Security
1.18Administration has announced a cost-of-living adjustment pursuant to United States Code,
1.19title 42, section 415(i), in the last quarter of the preceding calendar year that is greater than
1.20two percent. If the cost-of-living adjustment announced by the federal Social Security
1.21Administration is greater than two percent, the percentage of increase must be 50 percent
1.22of the cost-of-living adjustment announced by the federal Social Security Administration,
1.23except the percentage of increase must not exceed 1.5 percent.
1Section 1.
25-01679 as introduced01/21/25 REVISOR VH/KR
SENATE
STATE OF MINNESOTA
S.F. No. 1122NINETY-FOURTH SESSION
(SENATE AUTHORS: FRENTZ, Howe, Latz and Seeberger)
OFFICIAL STATUSD-PGDATE
Introduction and first reading02/06/2025
Referred to State and Local Government 2.1 (c)(1) for each annuitant or benefit If the recipient who will have of an annuity, a disability
2.2benefit, or a survivor's benefit has been receiving an the annuity or benefit for at least 36
2.312 full months as of the immediate preceding June 30, a postretirement of the calendar year
2.4immediately before the effective date of the increase, there is no reduction in the percentage
2.5of increase of one percent must be applied each year to the amount of the monthly annuity
2.6or benefit of the annuitant or benefit recipient; or.
2.7 (2) for each annuitant or benefit If the recipient who of an annuity, a disability benefit,
2.8or a survivor's benefit has been receiving the annuity or benefit for at least 25 full months
2.9one full month, but less than 36 12 full months as of the immediate preceding June 30, a
2.10postretirement increase of 1/12 of one percent for each full month that the person has been
2.11receiving an of the calendar year immediately before the effective date of the increase, the
2.12percentage of the increase is multiplied by a fraction, the numerator of which is the number
2.13of months the annuity or benefit during was received as of June 30 of the fiscal preceding
2.14calendar year in which the annuity or benefit was effective must be applied each year to the
2.15amount of the monthly annuity or benefit of the annuitant or benefit recipient and the
2.16denominator of which is 12.
2.17 (b) (d) An increase in annuity or benefit payments under this section subdivision must
2.18be made automatically unless written notice is filed by the annuitant or benefit recipient
2.19with the executive director of the Public Employees Retirement Association requesting that
2.20the increase not be made.
2.21 EFFECTIVE DATE.This section is effective for postretirement adjustments beginning
2.22on or after January 1, 2026.
2.23 Sec. 2. Minnesota Statutes 2024, section 356.415, subdivision 1e, is amended to read:
2.24 Subd. 1e.Annual postretirement adjustments; State Patrol retirement plan.(a)
2.25Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
2.26retirement plan are entitled to an annual postretirement adjustment, effective as of each
2.27January 1, as follows:
2.28 (1) a postretirement increase of one 1.5 percent must be applied each year to the monthly
2.29annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity
2.30or a benefit for at least 12 full months as of the June 30 of the calendar year immediately
2.31before the adjustment; and
2.32 (2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit
2.33for at least one full month, but less than 12 full months as of the June 30 of the calendar
2Sec. 2.
25-01679 as introduced01/21/25 REVISOR VH/KR 3.1year immediately before the adjustment, an annual postretirement increase of 1/12 of one
3.21.5 percent for each month that the person has been receiving an annuity or benefit must
3.3be applied to the amount of the monthly annuity or benefit of each annuitant or benefit
3.4recipient.
3.5 (b) An increase in annuity or benefit payments under this subdivision must be made
3.6automatically unless written notice is filed by the annuitant or benefit recipient with the
3.7executive director of the applicable covered Minnesota State Retirement plan System
3.8requesting that the increase not be made.
3.9 EFFECTIVE DATE.This section is effective for postretirement adjustments beginning
3.10on or after January 1, 2026.
3Sec. 2.
25-01679 as introduced01/21/25 REVISOR VH/KR