This bill amends the Minnesota State Retirement System by increasing the multiplier used to calculate the annuity amount for the general state employees retirement plan and enhancing the postretirement adjustment for the general state employees retirement plan, the legislators retirement plan, and the unclassified state employees retirement program. Specifically, it modifies the retirement annuity formula to provide a higher percentage for employees with allowable service after June 30, 2025, increasing the multiplier from 1.7% to 1.9% for those years. The bill also establishes an effective date of July 1, 2025, for these changes.

Additionally, the bill revises the annual postretirement adjustments, changing the increase from 1% to 1.75% for recipients who have been receiving benefits for at least 12 months, effective from January 1, 2026. It also adjusts the increase for those who have been receiving benefits for less than 12 months to 1/12 of 1.75% for each month of benefit receipt. The automatic nature of these adjustments is maintained unless a recipient opts out by providing written notice.

Statutes affected:
Introduction: 352.115, 356.415