HF3100 Summary

• Reduces actuarial assumption for investment rate of return from 7.5% to 7% for most Minnesota State Retirement System and Public Employees Retirement Association plans, effective June 30, 2023

• Eliminates delay to normal retirement age for postretirement adjustments to begin, allowing cost-of-living adjustments to start immediately upon retirement for members retiring on or after January 1, 2024

• Reduces vesting requirement from 5 years to 3 years for general employees retirement plans of Minnesota State Retirement System and Public Employees Retirement Association members employed after June 30, 2010

• Temporarily reduces employee contribution rate for general state employees retirement plan from 6% to 5.5% from July 1, 2023, to June 30, 2025, then returns to 6%

• Appropriates $485.9 million in one-time state aid to various pension plans, $5 million for volunteer firefighter plan incentive program, and $100,000 for Legislative Commission on Pensions and Retirement actuarial services