This bill amends various sections of Minnesota Statutes concerning the Public Employees Retirement Association (PERA) and the retirement plan for general employees, particularly in relation to the privatization of governmental subdivisions. Key amendments include the expansion of coverage to include governmental subdivisions, which were previously excluded, and the introduction of new definitions such as "governmental subdivision," "privatizing active employee," and "withdrawal liability." The bill clarifies the process for calculating withdrawal liability and mandates that governmental subdivisions reimburse PERA for the associated costs. Additionally, it establishes a reporting requirement for PERA to maintain and publicly disclose records of withdrawal liability calculations, ensuring that employees affected by privatization retain their retirement benefits.

Furthermore, the bill revises the retirement benefits framework for employees transitioning from public to privatized employment by removing references to "former public" employees, thereby clarifying their status. It specifies conditions under which augmentation rates for retirement benefits do not apply to privatized employees and outlines eligibility for early retirement and disability benefits, emphasizing credited service and medical documentation. The bill also repeals a specific definition related to medical facilities, which may affect benefit calculations. These changes will take effect on July 1, 2027, providing a transition period for affected employees and employers, and aim to streamline the retirement benefits process while preserving the rights and benefits of employees in the new privatized context.

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