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MN HF953
Bill
Status
2/25/2013
Primary Sponsor
Debra Hilstrom
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AI Summary
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Creates two tiers for judges in the Minnesota State Retirement System: Tier I (judges appointed before July 1, 2013) and Tier II (new judges appointed after June 30, 2013, or existing judges who elect tier II status).
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Increases normal retirement age from 65 to 66 for Tier II judges while maintaining age 65 for Tier I judges.
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Reduces postretirement adjustments for judges from 2.5 percent annually to 1.75 percent annually, with extended eligibility periods (18 months vs. 12 months for full increases), effective January 1, 2014.
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Increases Tier I member contributions from 8.0 percent to 9.0 percent of salary and establishes Tier II member contributions at 7.0 percent; increases employer contribution rate from 20.5 percent to 22.5 percent of salary.
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Allows existing judges with less than five years of service to elect Tier II program treatment by January 1, 2014, with the election being irrevocable; eliminates service credit limits for Tier II judges and reduces benefit accrual rate to 2.5 percent for service after December 31, 2013.
Legislative Description
Judges retirement plan; postretirement adjustments reduced, normal retirement age increased for new judges, member and employer contribution rates revised, and existing judges permitted to elect to be treated as a new judge for benefit and contribution purposes.
Last Action
Introduction and first reading, referred to Government Operations
2/25/2013