SF 2644 Summary

• Administrative Transfer: Transfers administrative functions of the Minneapolis Employees Retirement Fund (MERF) to the Public Employees Retirement Association (PERA) effective June 30, 2010.

• MERF Division Creation: Establishes a separate MERF division within PERA's general employees retirement plan with a dedicated consolidation account to hold former MERF assets and liabilities.

• Member and Service Transfer: All active, inactive, and retired MERF members transfer to the MERF division of PERA; service credit and salary credit transfer as documented through June 30, 2010.

• Benefit Continuity: Existing retirement annuities and benefits for MERF retirees continue under previous formulas; post-December 31, 2010 adjustments governed by PERA's standard postretirement adjustment provisions.

• Contribution Rates and State Aid: Sets employee contribution at 9.75 percent and employer contribution at 9.75 percent plus 2.68 percent additional; limits annual state contributions and establishes supplemental employer contribution mechanisms for specified employers.