| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to retirement; Public Employees Retirement Association; general employees |
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| 3 | 3 | | 1.3 retirement plan; modifying the circumstances under which the additional employer |
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| 4 | 4 | | 1.4 contribution is repealed; increasing postretirement adjustments; amending |
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| 5 | 5 | | 1.5 Minnesota Statutes 2024, sections 353.27, subdivision 3a; 356.415, subdivision |
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| 6 | 6 | | 1.6 1b. |
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| 7 | 7 | | 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 8 | 8 | | 1.8 Section 1. Minnesota Statutes 2024, section 353.27, subdivision 3a, is amended to read: |
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| 9 | 9 | | 1.9 Subd. 3a.Additional employer contribution.(a) An additional employer contribution |
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| 10 | 10 | | 1.10to the general employees retirement fund of the Public Employees Retirement Association |
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| 11 | 11 | | 1.11must be made equal to the following applicable percentage of the total salary amount for |
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| 12 | 12 | | 1.12"basic members" and for "coordinated members": |
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| 13 | 13 | | Coordinated Program1.13 Basic Program |
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| 14 | 14 | | .432.681.14Effective before January 1, 2006 |
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| 15 | 15 | | .52.681.15Effective January 1, 2006 |
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| 16 | 16 | | .752.681.16Effective January 1, 2009 |
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| 17 | 17 | | 12.681.17Effective January 1, 2010 |
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| 18 | 18 | | 1.18 These contributions must be made from funds available to the employing subdivision |
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| 19 | 19 | | 1.19by the means and in the manner provided in section 353.28. |
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| 20 | 20 | | 1.20 (b) The coordinated program contribution rates set forth in paragraph (a) effective for |
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| 21 | 21 | | 1.21January 1, 2010, must not be implemented if, following receipt of the July 1, 2009, annual |
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| 22 | 22 | | 1.22actuarial valuation report under section 356.215, respectively, the actuarially required |
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| 23 | 23 | | 1.23contributions are equal to or less than the total rates under this section in effect as of January |
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| 24 | 24 | | 1.241, 2008. |
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| 25 | 25 | | 1Section 1. |
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| 26 | 26 | | 25-05150 as introduced03/21/25 REVISOR VH/BM |
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| 27 | 27 | | SENATE |
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| 28 | 28 | | STATE OF MINNESOTA |
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| 29 | 29 | | S.F. No. 3192NINETY-FOURTH SESSION |
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| 30 | 30 | | (SENATE AUTHORS: FRENTZ, Limmer, Dahms, Jasinski and Pappas) |
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| 31 | 31 | | OFFICIAL STATUSD-PGDATE |
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| 32 | 32 | | Introduction and first reading04/01/2025 |
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| 33 | 33 | | Referred to State and Local Government 2.1 (c) (b) This subdivision is repealed once the actuarial value of the assets of the general |
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| 34 | 34 | | 2.2employees retirement plan of the Public Employees Retirement Association equal or exceed |
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| 35 | 35 | | 2.398 percent of the actuarial accrued liability of the plan as determined by the actuary retained |
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| 36 | 36 | | 2.4under sections 356.214 and 356.215. The repeal is effective on the first day of the first full |
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| 37 | 37 | | 2.5pay period occurring after March 31 of the calendar year following the issuance of the |
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| 38 | 38 | | 2.6actuarial valuation upon which the repeal is based. |
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| 39 | 39 | | 2.7 EFFECTIVE DATE.This section is effective the day following final enactment. |
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| 40 | 40 | | 2.8 Sec. 2. Minnesota Statutes 2024, section 356.415, subdivision 1b, is amended to read: |
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| 41 | 41 | | 2.9 Subd. 1b.Annual postretirement adjustments; PERA Public Employees Retirement |
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| 42 | 42 | | 2.10Association; general employees retirement plan.(a) Annuities, disability benefits, and |
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| 43 | 43 | | 2.11survivor benefits being paid from the general employees retirement plan of the Public |
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| 44 | 44 | | 2.12Employees Retirement Association shall be increased effective each January 1 by the |
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| 45 | 45 | | 2.13percentage of increase determined under this subdivision. The increase to the annuity or |
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| 46 | 46 | | 2.14benefit shall be determined by multiplying the monthly amount of the annuity or benefit by |
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| 47 | 47 | | 2.15the percentage of increase specified in paragraph (b), after taking into account any reduction |
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| 48 | 48 | | 2.16to the percentage of increase required under paragraph (c) (d). |
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| 49 | 49 | | 2.17 (b) The percentage of increase shall be one percent unless the federal Social Security |
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| 50 | 50 | | 2.18Administration has announced a cost-of-living adjustment pursuant to United States Code, |
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| 51 | 51 | | 2.19title 42, section 415(i), in the last quarter of the preceding calendar year that is greater than |
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| 52 | 52 | | 2.20two one percent. If the cost-of-living adjustment announced by the federal Social Security |
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| 53 | 53 | | 2.21Administration is greater than two one percent, the percentage of increase shall be 50 percent |
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| 54 | 54 | | 2.22of must be the same as the cost-of-living adjustment announced by the federal Social Security |
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| 55 | 55 | | 2.23Administration, but in no event may the percentage of increase exceed 1.5 percent the |
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| 56 | 56 | | 2.24applicable maximum percentage in effect on January 1 under paragraph (c). |
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| 57 | 57 | | 2.25 (c) The applicable maximum percentage in effect on January 1 is 1.75 percent, unless |
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| 58 | 58 | | 2.26either of the following is true, in which case the applicable maximum percentage is 1.5 |
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| 59 | 59 | | 2.27percent: |
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| 60 | 60 | | 2.28 (1) the market value of assets equals or is less than 85 percent of the actuarial accrued |
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| 61 | 61 | | 2.29liabilities as reported by the plan's actuary in the most recent two consecutive annual actuarial |
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| 62 | 62 | | 2.30valuations; or |
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| 63 | 63 | | 2.31 (2) the market value of assets equals or is less than 80 percent of the actuarial accrued |
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| 64 | 64 | | 2.32liabilities as reported by the plan's actuary in the most recent annual actuarial valuation. |
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| 65 | 65 | | 2Sec. 2. |
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| 66 | 66 | | 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 |
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| 67 | 67 | | 3.2receiving the annuity or benefit for at least 12 full months as of the June 30 of the calendar |
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| 68 | 68 | | 3.3year immediately before the effective date of the increase, there is no reduction in the |
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| 69 | 69 | | 3.4percentage of increase. |
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| 70 | 70 | | 3.5 (2) If the recipient of an annuity, disability benefit, or survivor's benefit has been receiving |
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| 71 | 71 | | 3.6the annuity or benefit for at least one month, but less than 12 full months, as of the June 30 |
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| 72 | 72 | | 3.7of the calendar year immediately preceding the effective date of the increase, the percentage |
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| 73 | 73 | | 3.8of increase is multiplied by a fraction, the numerator of which is the number of months the |
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| 74 | 74 | | 3.9annuity or benefit was received as of June 30 of the preceding calendar year and the |
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| 75 | 75 | | 3.10denominator of which is 12. |
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| 76 | 76 | | 3.11 (d) (e) An increase in annuity or benefit payments under this section subdivision must |
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| 77 | 77 | | 3.12be made automatically unless written notice is filed by the recipient with the executive |
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| 78 | 78 | | 3.13director of the Public Employees Retirement Association requesting that the increase not |
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| 79 | 79 | | 3.14be made. |
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| 80 | 80 | | 3.15 EFFECTIVE DATE.This section is effective for postretirement adjustments beginning |
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| 81 | 81 | | 3.16on or after January 1, 2026. |
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| 82 | 82 | | 3Sec. 2. |
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| 83 | 83 | | 25-05150 as introduced03/21/25 REVISOR VH/BM |
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