MN HF2821

Raises the funding threshold for repealing additional employer contributions to the PERA general employees retirement plan from 90% to 98% of actuarial accrued liability

Increases the maximum annual postretirement adjustment (cost-of-living increase) for PERA retirees from 1.5% to 1.75% when plan assets exceed 85% of liabilities

Ties annual benefit increases directly to the federal Social Security cost-of-living adjustment when it exceeds 1%, rather than providing only 50% of the federal adjustment

Reduces the maximum postretirement adjustment to 1.5% if plan assets fall to 85% or below of liabilities for two consecutive years, or drop to 80% or below in any single year

Postretirement adjustment changes take effect January 1, 2026; employer contribution changes are effective the day after enactment