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. It restores augmentation for members who left public employment before January 1, 2019, establishing specific augmentation rates based on their service periods. For those who became state employees before July 1, 2006, the bill specifies a five percent augmentation until January 1, 1981, followed by a three percent rate until January 1, 2012, and a five percent rate until December 31, 2011. After December 31, 2011, the augmentation rate is set to zero percent for individuals who terminate active service after December 31, 2018.

Additionally, the bill mandates the recalculation of annuities for former employees who began receiving pensions on or after January 1, 2019, requiring adjustments to their ongoing annuity amounts if the recalculated amount is higher. It also introduces similar provisions for former teachers who began receiving pensions from the Teachers Retirement Association or the St. Paul Teachers' Retirement Fund Association on or after July 1, 2019, ensuring their annuities are adjusted based on new calculations. Furthermore, former teachers are given the option to elect a distribution of the lump sum or a direct rollover, provided the lump sum qualifies as an eligible rollover distribution. The effective date for these changes is the day following final enactment.

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