This bill proposes extensive amendments to the Minnesota State Retirement System and the Public Employees Retirement Association, focusing on enhancing retirement benefits and clarifying eligibility criteria for various public employees. Key changes include an increase in the formula multiplier for the general state employees retirement plan, adjustments to postretirement benefits for legislators and unclassified retirement plans, and the introduction of new work groups to address pension plans for specific public safety roles. The bill also modifies employer contribution limits, revises the method for calculating withdrawal liability, and implements recommendations from work groups regarding retirement eligibility and funding.

Specific legal language changes include the modification of the retirement annuity formula to provide higher percentages for years of service after June 30, 2025, and adjustments to postretirement adjustment rates starting in 2026. The bill clarifies conditions for employees to repay refunds and establishes new eligibility criteria for mandatory membership in retirement plans. Additionally, it introduces definitions related to the privatization of governmental subdivisions and outlines the obligations of privatized employers regarding withdrawal liability. Overall, the bill aims to streamline retirement processes, enhance benefits for state employees, and ensure the sustainability of retirement systems in Minnesota.

Statutes affected:
Introduction: 352.22, 356.636
1st Engrossment: 352.115, 352.22, 356.415, 353.01, 353.028, 353.27, 353.34, 353E.06, 353D.02, 353F.01, 353F.02, 353F.025, 353F.03, 353F.04, 353F.05, 353F.051, 353F.052, 353F.057, 353F.06, 353F.07, 353F.08, 353F.09, 352.01, 352.029, 352.03, 352.90, 352.93, 352.955, 352.91, 356.24, 424A.014, 424A.015, 424A.016, 424A.05, 424A.06, 424A.092, 424A.093, 424A.02, 356A.06, 187.03, 187.05, 187.07, 187.08, 187.11, 268.19, 353G.08, 356.215, 356.636, 3.85, 353G.11, 353G.17, 353G.19, 354B.215, 423A.022, 424A.08, 477B.02, 477B.03, 477B.04, 11A.07, 11A.27, 353D.01, 124E.12, 181.101, 356.633, 424B.22, 356.635
2nd Engrossment: 352.115, 352.22, 356.415, 353.01, 353.028, 353.27, 353.34, 353E.06, 353D.01, 353D.02, 353F.01, 353F.02, 353F.025, 353F.03, 353F.04, 353F.05, 353F.051, 353F.052, 353F.057, 353F.06, 353F.07, 353F.08, 353F.09, 352.01, 352.029, 352.03, 352.90, 352.93, 352.955, 352.91, 356.24, 424A.014, 424A.015, 424A.016, 424A.05, 424A.06, 424A.092, 424A.093, 424A.02, 356A.06, 187.03, 187.05, 187.07, 187.08, 187.11, 268.19, 353G.08, 356.215, 356.636, 353.65, 126C.10, 127A.50, 354.42, 354.44, 299A.465, 353.032, 352.92, 352B.02, 423A.022, 490.123, 3.85, 353G.11, 353G.17, 353G.19, 354B.215, 424A.08, 477B.02, 477B.03, 477B.04, 11A.07, 11A.27, 124E.12, 181.101, 356.633, 424B.22, 356.635