This bill amends various sections of Minnesota Statutes concerning the Public Employees Retirement Association (PERA) and the retirement benefits of employees transitioning from public to privatized employment. It expands the coverage of retirement benefits to include employees of governmental subdivisions that undergo privatization, ensuring they retain their retirement benefits based on prior contributions. Key revisions include updated definitions for terms such as "governmental subdivision," "privatization," and "withdrawal liability," along with new subdivisions that clarify the terms and conditions related to these changes. The bill also outlines the process for calculating withdrawal liability for these subdivisions, requiring reimbursement to PERA for the cost of these calculations, and establishes a timeline for payment and annual reporting requirements for privatized employers.

Additionally, the bill removes references to "former public" employees, clarifying the status of privatized employees and specifying that certain augmentation rates and eligibility criteria for retirement benefits will apply under specific conditions. It allows privatized employees to receive refunds of their accumulated contributions and outlines available counseling services regarding their retirement benefits. The bill also repeals a specific definition related to "medical facility" and sets an effective date for the changes to take effect on July 1, 2027. Overall, this legislative update aims to streamline the retirement process for privatized employees, ensuring they have access to benefits comparable to their public counterparts while clarifying their employment status and retirement eligibility.

Statutes affected:
Introduction: 353F.02, 353F.01, 353F.025, 353F.03, 353F.04, 353F.05, 353F.051, 353F.052, 353F.057, 353F.06, 353F.07, 353F.08, 353F.09