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, as well as enhancing the postretirement adjustments for the general state employees retirement plan, the legislators retirement plan, and the unclassified state employees retirement program. Specifically, the bill introduces a new retirement annuity formula that differentiates between employees with allowable service before and after June 30, 2025. For those without allowable service after this date, the annuity will be calculated at 1.2 percent for the first ten years and 1.7 percent for subsequent years, while employees with service after this date will receive 1.9 percent for each year of service beyond June 30, 2025.

Additionally, the bill modifies the annual postretirement adjustments, changing the increase from one percent to 1.75 percent for those who have been receiving benefits for at least 12 months, effective from January 1, 2026. For recipients with less than 12 months of benefits, the adjustment will be calculated at 1/12 of 1.75 percent for each month of benefit received. The adjustments will be automatically applied unless a written notice is submitted to opt-out. These changes aim to enhance the financial security of retirees within the Minnesota State Retirement System.

Statutes affected:
Introduction: 352.115, 356.415