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. Key changes include the restoration of augmentation for members who left public employment before January 1, 2019, while establishing a zero percent augmentation rate for those who terminate active service after December 31, 2018. The new legal language clarifies that no augmentation will occur for individuals who leave after this specified date, thereby modifying the augmentation rates based on employment start dates and service termination timing.

Additionally, the bill mandates retroactive implementation, requiring the executive directors of the respective retirement systems to recalculate annuities for former employees who began receiving pensions after January 1, 2019. This recalculation ensures that affected individuals receive higher amounts that would have been applicable under the new augmentation rules. The directors must also provide lump sum distributions to these individuals, allowing them to choose between a lump sum or a direct rollover of the difference in annuity amounts. 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, with adjustments to their ongoing annuity amounts and the option for lump sum distributions. The effective date for all changes is set for the day following final enactment.

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