The bill introduces comprehensive reforms to the retirement plans for State Patrol and public employees in police and fire services, aiming to enhance benefits while reducing employee contributions. Key changes include a decrease in employee contribution rates, an increase in postretirement adjustments to 1.5% for beneficiaries receiving benefits for at least six months starting January 1, 2024, and a new supplemental employer contribution of 3.6% for certain members. Additionally, the bill allocates $14.5 million annually in direct state aid to the State Patrol retirement fund, effective from 2023, and modifies vesting requirements for new members, requiring ten years of service for full vesting for those joining after June 30, 2023.

Furthermore, the bill amends Minnesota Statutes to significantly increase the state's annual payment to the public employees police and fire retirement plan from $4.5 million to $9 million, and then to $84 million starting in 2023. This aid will continue until the fund's actuarial value meets or exceeds 100% of its actuarial accrued liabilities, as determined by two consecutive annual actuarial valuations, or until July 1, 2048. The bill also clarifies the conditions under which this aid will expire, ensuring it remains in effect until one of the specified conditions is met. The effective dates for these provisions are set for the day following final enactment or specific dates related to the changes.

Statutes affected:
Introduction: 352B.02, 353.65, 356.415, 353.01, 356.215, 356.59