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MN HF4306
Bill
Status
3/14/2022
Primary Sponsor
Mary Murphy
Click for details
AI Summary
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Increases postretirement adjustment rates for multiple retirement plans from 1-1.75 percent to 2.5 percent, effective January 1, 2023, with delayed implementation for members retiring after specific dates.
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Temporarily reduces employee contribution rates for most retirement plans from July 1, 2022, to June 30, 2025, then returns to previous rates (example: PERA general employees from 9.10 percent to 8.10 percent).
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Reduces the investment rate of return actuarial assumption from 7.5 percent to unspecified rates for state retirement plans, affecting how plan liabilities are calculated.
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Increases annual direct state aid to public employees police and fire plan from $9,000,000 to $13,500,000 and to judges' retirement plan from $6,000,000 to $9,000,000, extending payments until July 1, 2068.
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Appropriates $1,000,000,000 in fiscal year 2023 from the general fund to be allocated among nine major pension plans based on their asset values.
Legislative Description
Minnesota State Retirement System plans, Public Employees Retirement Association plans, Teachers Retirement Association, Minnesota state higher education individual retirement account plan, and St. Paul Teachers Retirement Fund Association provisions changed; postretirement adjustment rates increased; employee contribution rates temporarily reduced; investment rate of return actuarial assumption reduced; direct state aid increased and extended to the public employees police and fire retirement plan, the St. Paul Teachers Retirement Fund Association, and the judges retirement plan; and money appropriated.
Last Action
Committee report, to adopt and re-refer to Ways and Means
4/4/2022