HF1152 Summary

• Increases member and employer contribution rates across multiple retirement plans (State Patrol, PERA, teachers funds) with phased increases through 2016-2017.

• Extends vesting requirements for new hires after June 30, 2013, from 5 years to 10 years in PERA police and fire plan; increases early retirement reductions and caps allowable service at 33 years for calculating annuities.

• Modifies postretirement adjustment triggers: reduces from 90% to 85% funded ratio threshold for PERA plans and changes judges plan increases from 2.5% to 1.75% until 70% funding is achieved.

• Increases normal retirement age for new judges to 66 and creates two-tier judges system; establishes new benefit accrual rate of 2.5% for judges with no service credit limit for tier II judges.

• Provides direct state aid to Duluth Teachers Retirement Fund Association ($6.346 million) and St. Paul Teachers Retirement Fund Association ($9.827 million); modifies salary definitions and clarifies disability application requirements for police and fire plans.