Loading chat...
MN HF618
Bill
Status
2/14/2013
Primary Sponsor
Mike Nelson
Click for details
AI Summary
-
Modifies duty disability definitions for police/fire and correctional retirement plans to require that disabilities arise from "inherently dangerous duties" rather than normal duties, effective immediately.
-
Increases employee contributions for public employees police and fire plan from 9.4% to a graduated scale: 9.6% before 2014, 10.2% in 2014, and 10.8% from 2015 onward; employer contributions increase from 14.1% to 14.4% before 2014, 15.3% in 2014, and 16.2% from 2015 onward.
-
Revises vesting schedules for police and fire retirement plan members first enrolled after June 30, 2014, extending full vesting to 20 years of service with graduated percentages (50% after 10 years, increasing 5% per year) instead of the previous 10-year schedule.
-
Changes postretirement adjustment triggers by raising thresholds from 90% to 85% or 80% funding ratios to trigger reductions back to 1% annual increases for general employees and correctional plans, and delays first adjustment for police/fire members enrolled after June 1, 2014 until 36 months of benefit receipt.
-
Clarifies disability application requirements by requiring employers to provide detailed duty explanations, limits early retirement reductions for members after July 1, 2014, and caps normal retirement annuity at 99% of average salary with a 33-year service limit for police/fire members enrolled after June 30, 2014.
Legislative Description
Public Employees Retirement Association; annual postretirement adjustments trigger and duty disability definitions modified, disability application requirements clarified, vesting revised, employee and employer contribution plan and early retirement clarifying survivor benefit provision reduction increased, first annual postretirement adjustment for police and fire retirement plan delayed.
Last Action
Introduction and first reading, referred to Government Operations
2/14/2013