This bill amends various sections of the 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 restoration of augmentation for members who left public employment before January 1, 2019, with specific augmentation rates established for different time periods and employee classifications. The bill introduces a zero percent augmentation rate for individuals who terminate active service after December 31, 2018, indicating that their annuities will not be augmented post this date. Additionally, it mandates the recalculation of annuities for former employees who began receiving pensions on or after January 1, 2019, ensuring their benefits align with the new augmentation provisions.

Moreover, the bill includes provisions for recalculating the annuities of 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. The executive directors of these associations are required to adjust ongoing annuity amounts based on new calculations and offer a lump sum distribution to these former teachers, representing the difference between the recalculated monthly amount and the current payment, multiplied by the number of monthly payments made prior to the new calculation. Former teachers are also 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 all these changes is set for the day following final enactment.

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