This bill proposes amendments to the Minnesota State Retirement System, specifically targeting the retirement annuity calculations for general state employees, legislators, and unclassified state employees. It introduces a new formula for calculating retirement annuities based on the employee's average salary and years of allowable service. For employees without allowable service after June 30, 2025, the annuity will be calculated at 1.2 percent for the first ten years and 1.7 percent for each subsequent year. For those with allowable service after that date, the calculation will increase to 1.9 percent for each year beyond June 30, 2025. The effective date for these changes is set for July 1, 2025.

Additionally, the bill modifies the annual postretirement adjustments for recipients of retirement benefits. It removes previous provisions for a one percent increase from 2019 to 2023 and replaces them with a new structure that provides a 1.75 percent increase for those receiving benefits for at least 12 months, and a proportional increase for those receiving benefits for less than that duration, effective from January 1, 2026. The adjustments will be automatically applied unless the recipient opts out by notifying the Minnesota State Retirement System.

Statutes affected:
Introduction: 352.115, 356.415