This bill amends Minnesota Statutes 2022, section 356.415, subdivision 1c, to enhance the annual postretirement adjustments for recipients of the public employees police and fire retirement plan. The bill introduces a new calculation for the postretirement adjustment, which will be set at a minimum of one percent unless the federal Social Security Administration announces a cost-of-living adjustment greater than two percent. In such cases, the adjustment will be capped at 1.5 percent of the announced cost-of-living increase. Additionally, the waiting period for receiving these adjustments has been reduced from 36 months to 12 months, allowing beneficiaries to receive their adjustments sooner.

The bill also specifies that the adjustments will be automatically applied unless a written notice is submitted by the annuitant or benefit recipient requesting otherwise. The effective date for these changes is set for postretirement adjustments beginning on or after January 1, 2025. Overall, this legislation aims to provide more timely and potentially higher financial support for public employees in the police and fire retirement plan.

Statutes affected:
Introduction: 356.415