This bill amends various sections of Minnesota Statutes concerning the augmentation of deferred annuities for members of the Minnesota State Retirement System, Public Employees Retirement Association, Teachers Retirement Association, and St. Paul Teachers' Retirement Fund Association. A significant change is the introduction of a new augmentation rate of zero percent for individuals who terminate active service after December 31, 2018, while previous rates applicable from January 1, 2012, to December 31, 2018, are removed. Additionally, the bill stipulates that annuities will not be augmented for those who terminate service after December 31, 2018.

The bill also mandates the recalculation of annuities for former employees who began receiving pensions on or after January 1, 2019, ensuring their amounts reflect the new augmentation rates. The executive directors of the respective retirement systems are required to provide a lump sum distribution to these individuals, representing the difference between the recalculated annuity and the amount they have been receiving. Similar provisions apply to former teachers from the Teachers Retirement Association and St. Paul Teachers' Retirement Fund Association who began receiving pensions on or after July 1, 2019. They will also receive recalculated annuity amounts and have the option to elect a distribution of the lump sum or a direct rollover if eligible. The effective date for all changes is the day following final enactment.

Statutes affected:
Introduction: 352.22, 352B.08, 353.34, 354.55, 354A.37