MN SF3541

Reduces employee contribution rates across multiple state retirement plans including general state employees, correctional employees, legislators, and teachers retirement plans, effective after June 30, 2022.

Increases postretirement adjustments from 1% to 1.5% effective January 1, 2023, with a phased increase for Teachers Retirement Association members reaching 1.5% by 2028.

Decreases employer contribution rates for the public employees police and fire retirement plan from 17.7% to 14.1% effective July 1, 2022, while establishing a 3.6% supplemental employer contribution.

Reduces the investment rate of return actuarial assumption from 7.5% to 7% for most retirement plans and reduces interest rates for member accounts effective July 1, 2022 and June 30, 2022.

Provides direct state aid to multiple pension funds totaling approximately $155.5 million annually beginning in 2022, continuing until fund assets reach 100% of actuarial liabilities or July 1, 2048, whichever occurs first.