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MN SF4294

Bill

Status

Introduced

3/24/2022

Primary Sponsor

Nick Frentz

Click for details

Origin

Senate

92nd Legislature 2021-2022

AI Summary

S.F. No. 4294 Summary

  • Increases postretirement adjustment rates across multiple retirement plans, with most plans moving to 2.5 percent adjustments beginning January 1, 2023 (with some phased increases), effective June 30, 2022.

  • Temporarily reduces employee contribution rates from July 1, 2022, to June 30, 2025, for most retirement plans, with rates reverting to previous levels after June 30, 2025.

  • Reduces the investment rate of return actuarial assumption from 7.5 percent to an unspecified lower rate for multiple pension plans.

  • Increases direct state aid to the public employees police and fire retirement plan from $9 million to $13.5 million annually, increases St. Paul Teachers Retirement Fund Association aid by $2.5 million, and increases judges' retirement plan aid from $6 million to $9 million annually, with all aid extended until July 1, 2068.

  • Appropriates $1 billion in fiscal year 2023 from the general fund to nine major pension plans, allocated proportionally based on each plan's market value of assets.

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

Referred to State Government Finance and Policy and Elections

3/24/2022

Committee Referrals

State Government Finance and Policy and Elections3/24/2022

Full Bill Text

No bill text available