1.1 A bill for an act
1.2 relating to retirement; Public Employees Retirement Association; general employees
1.3 retirement plan; modifying the circumstances under which the additional employer
1.4 contribution is repealed; increasing postretirement adjustments; amending
1.5 Minnesota Statutes 2024, sections 353.27, subdivision 3a; 356.415, subdivision
1.6 1b.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2024, section 353.27, subdivision 3a, is amended to read:
1.9 Subd. 3a.Additional employer contribution.(a) An additional employer contribution
1.10to the general employees retirement fund of the Public Employees Retirement Association
1.11must be made equal to the following applicable percentage of the total salary amount for
1.12"basic members" and for "coordinated members":
Coordinated Program1.13 Basic Program
.432.681.14Effective before January 1, 2006
.52.681.15Effective January 1, 2006
.752.681.16Effective January 1, 2009
12.681.17Effective January 1, 2010
1.18 These contributions must be made from funds available to the employing subdivision
1.19by the means and in the manner provided in section 353.28.
1.20 (b) The coordinated program contribution rates set forth in paragraph (a) effective for
1.21January 1, 2010, must not be implemented if, following receipt of the July 1, 2009, annual
1.22actuarial valuation report under section 356.215, respectively, the actuarially required
1.23contributions are equal to or less than the total rates under this section in effect as of January
1.241, 2008.
1Section 1.
25-05150 as introduced03/21/25 REVISOR VH/BM
SENATE
STATE OF MINNESOTA
S.F. No. 3192NINETY-FOURTH SESSION
(SENATE AUTHORS: FRENTZ, Limmer, Dahms, Jasinski and Pappas)
OFFICIAL STATUSD-PGDATE
Introduction and first reading04/01/2025
Referred to State and Local Government 2.1 (c) (b) This subdivision is repealed once the actuarial value of the assets of the general
2.2employees retirement plan of the Public Employees Retirement Association equal or exceed
2.398 percent of the actuarial accrued liability of the plan as determined by the actuary retained
2.4under sections 356.214 and 356.215. The repeal is effective on the first day of the first full
2.5pay period occurring after March 31 of the calendar year following the issuance of the
2.6actuarial valuation upon which the repeal is based.
2.7 EFFECTIVE DATE.This section is effective the day following final enactment.
2.8 Sec. 2. Minnesota Statutes 2024, section 356.415, subdivision 1b, is amended to read:
2.9 Subd. 1b.Annual postretirement adjustments; PERA Public Employees Retirement
2.10Association; general employees retirement plan.(a) Annuities, disability benefits, and
2.11survivor benefits being paid from the general employees retirement plan of the Public
2.12Employees Retirement Association shall be increased effective each January 1 by the
2.13percentage of increase determined under this subdivision. The increase to the annuity or
2.14benefit shall be determined by multiplying the monthly amount of the annuity or benefit by
2.15the percentage of increase specified in paragraph (b), after taking into account any reduction
2.16to the percentage of increase required under paragraph (c) (d).
2.17 (b) The percentage of increase shall be one percent unless the federal Social Security
2.18Administration has announced a cost-of-living adjustment pursuant to United States Code,
2.19title 42, section 415(i), in the last quarter of the preceding calendar year that is greater than
2.20two one percent. If the cost-of-living adjustment announced by the federal Social Security
2.21Administration is greater than two one percent, the percentage of increase shall be 50 percent
2.22of must be the same as the cost-of-living adjustment announced by the federal Social Security
2.23Administration, but in no event may the percentage of increase exceed 1.5 percent the
2.24applicable maximum percentage in effect on January 1 under paragraph (c).
2.25 (c) The applicable maximum percentage in effect on January 1 is 1.75 percent, unless
2.26either of the following is true, in which case the applicable maximum percentage is 1.5
2.27percent:
2.28 (1) the market value of assets equals or is less than 85 percent of the actuarial accrued
2.29liabilities as reported by the plan's actuary in the most recent two consecutive annual actuarial
2.30valuations; or
2.31 (2) the market value of assets equals or is less than 80 percent of the actuarial accrued
2.32liabilities as reported by the plan's actuary in the most recent annual actuarial valuation.
2Sec. 2.
25-05150 as introduced03/21/25 REVISOR VH/BM 3.1 (c) (d)(1) If the recipient of an annuity, disability benefit, or survivor's benefit has been
3.2receiving the annuity or benefit for at least 12 full months as of the June 30 of the calendar
3.3year immediately before the effective date of the increase, there is no reduction in the
3.4percentage of increase.
3.5 (2) If the recipient of an annuity, disability benefit, or survivor's benefit has been receiving
3.6the annuity or benefit for at least one month, but less than 12 full months, as of the June 30
3.7of the calendar year immediately preceding the effective date of the increase, the percentage
3.8of increase is multiplied by a fraction, the numerator of which is the number of months the
3.9annuity or benefit was received as of June 30 of the preceding calendar year and the
3.10denominator of which is 12.
3.11 (d) (e) An increase in annuity or benefit payments under this section subdivision must
3.12be made automatically unless written notice is filed by the recipient with the executive
3.13director of the Public Employees Retirement Association requesting that the increase not
3.14be made.
3.15 EFFECTIVE DATE.This section is effective for postretirement adjustments beginning
3.16on or after January 1, 2026.
3Sec. 2.
25-05150 as introduced03/21/25 REVISOR VH/BM