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MN SF4294
Bill
Status
3/24/2022
Primary Sponsor
Nick Frentz
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AI Summary
S.F. No. 4294 Summary
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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.
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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.
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Reduces the investment rate of return actuarial assumption from 7.5 percent to an unspecified lower rate for multiple pension plans.
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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.
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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