This bill amends the Minnesota Statutes related to the Public Employees Retirement Association (PERA) and its general employees retirement plan. It modifies the conditions under which the additional employer contribution is repealed, specifically removing the previous stipulation that the coordinated program contribution rates effective January 1, 2010, would not be implemented if the actuarially required contributions were equal to or less than the total rates in effect as of January 1, 2008. The new language establishes that the repeal of the additional employer contribution will take effect on the first day of the first full pay period after March 31 of the calendar year following the actuarial valuation that justifies the repeal. This section is effective the day following final enactment.

Additionally, the bill increases postretirement adjustments for annuities, disability benefits, and survivor benefits paid from the general employees retirement plan. The percentage of increase is set at one percent unless a higher cost-of-living adjustment is announced by the federal Social Security Administration, with a new maximum percentage of increase established at 1.75 percent, contingent on the market value of assets relative to actuarial accrued liabilities. The adjustments will be automatically applied unless a recipient opts out, and this provision will take effect for adjustments beginning on or after January 1, 2026.

Statutes affected:
Introduction: 353.27, 356.415