The bill amends the Minnesota Statutes concerning 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 It modifies the conditions under which the additional employer contribution is repealed, specifically removing the previous stipulation that the coordinated program contribution rates effective January 1, 2010, would not be implemented if the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 issuance of the relevant actuarial valuation.

Additionally, the bill increases postretirement adjustments for annuities, disability benefits, and survivor benefits paid from the general employees retirement plan. It specifies that the percentage of increase will be one percent unless a higher cost-of-living adjustment is announced by the federal Social Security Administration, with a maximum percentage increase set at 1.75 percent under certain conditions. The effective date for these postretirement adjustments is set for January 1, 2026. The bill also clarifies that the adjustments will be made automatically unless a recipient opts out by providing written notice to the executive director of PERA.

Statutes affected:
Introduction: 353.27, 356.415