A bill for an act
relating to retirement; State Patrol retirement plan and public employees police
and fire retirement plan; reducing employee contribution rates; increasing
postretirement adjustments; modifying vesting and return to work requirements,
decreasing the employer contribution rate, and adding a supplemental employer
contribution for the public employees police and fire retirement plan; reducing the
investment rate of return actuarial assumption; reducing interest rates; increasing
and adding direct state aids; amending Minnesota Statutes 2022, sections 352B.02,
subdivision 1a; 353.01, subdivision 47; 353.65, subdivisions 2, 3, 3b, by adding
a subdivision; 356.215, subdivision 8; 356.415, subdivisions 1c, 1e; 356.59,
subdivisions 2, 3; proposing coding for new law in Minnesota Statutes, chapters
352B; 353.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

EMPLOYEE CONTRIBUTION RATE DECREASE

Section 1.

Minnesota Statutes 2022, section 352B.02, subdivision 1a, is amended to read:


Subd. 1a.

Member contributions.

(a) The member contribution is the following
percentage of the member's salary:

deleted text begin from July 1, 2014, to June 30, 2016
deleted text end
deleted text begin 13.4
deleted text end
deleted text begin from July 1, 2016, to June 30, 2018
deleted text end
deleted text begin 14.4
deleted text end
deleted text begin from July 1, 2018, to June 30, 2020
deleted text end
deleted text begin 14.9
deleted text end
deleted text begin after June 30deleted text end new text begin July 1new text end , 2020new text begin , to June 30, 2023
new text end
15.4
new text begin after June 30, 2023
new text end
new text begin 10.5
new text end

(b) These contributions must be made by deduction from salary as provided in section
352.04, subdivision 4.

(c) Contribution increases under paragraph (a) must be paid starting the first day of the
first full pay period after the effective date of the increase.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2022, section 353.65, subdivision 2, is amended to read:


Subd. 2.

Employee contribution.

(a) For members other than members who were active
members of the former Minneapolis Firefighters Relief Association on December 29, 2011,
or for members other than members who were active members of the former Minneapolis
Police Relief Association on December 29, 2011, the employee contribution is an amount
equal to the following percentage of the total salary of each member, as follows:

deleted text begin before January 1, 2019
deleted text end
deleted text begin 10.8 percent
deleted text end
deleted text begin from January 1, 2019, through December 31, 2019
deleted text end
deleted text begin 11.3 percent
deleted text end
from January 1, 2020, deleted text begin and thereafterdeleted text end new text begin to June 30, 2023
new text end
11.8 percent
new text begin after June 30, 2023
new text end
new text begin 9.4 percent
new text end

(b) For members who were active members of the former Minneapolis Firefighters Relief
Association on December 29, 2011, the employee contribution is an amount equal to eight
percent of the monthly unit value under section 353.01, subdivision 10a, multiplied by 80
and expressed as a biweekly amount for each member. The employee contribution made
by a member with at least 25 years of service credit as an active member of the former
Minneapolis Firefighters Relief Association must be deposited in the postretirement health
care savings account established under section 352.98.

(c) For members who were active members of the former Minneapolis Police Relief
Association on December 29, 2011, the employee contribution is an amount equal to eight
percent of the monthly unit value under section 353.01, subdivision 10b, multiplied by 80
and expressed as a biweekly amount for each member. The employee contribution made
by a member with at least 25 years of service credit as an active member of the former
Minneapolis Police Relief Association must be deposited in the postretirement health care
savings account established under section 352.98.

(d) Contributions under this section must be made by deduction from salary in the manner
provided in subdivision 4. Where any portion of a member's salary is paid from other than
public funds, the member's employee contribution is based on the total salary received from
all sources.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

POSTRETIREMENT ADJUSTMENTS

Section 1.

Minnesota Statutes 2022, section 356.415, subdivision 1c, is amended to read:


Subd. 1c.

Annual postretirement adjustments; deleted text begin PERA-deleted text end new text begin public employees new text end police and
firenew text begin retirement plannew text end .

(a) Retirement annuity, disability benefit, or survivor benefit recipients
of the public employees police and fire retirement plan are entitled to an annual postretirement
adjustment, effective as of each January 1, as follows:

(1) new text begin through December 31, 2023, new text end for each annuitant or benefit recipient who will have
been receiving an annuity or benefit for at least 36 full months as of the immediate preceding
June 30, a postretirement increase of one percent must be applied each year to the amount
of the monthly annuity or benefit of the annuitant or benefit recipient; deleted text begin or
deleted text end

(2) new text begin through December 31, 2023, new text end for each annuitant or benefit recipient who has been
receiving the annuity or benefit for at least 25 full months, but less than 36 months as of
the immediate preceding June 30, a postretirement increase of 1/12 of one percent for each
full month that the person has been receiving an annuity or benefit during the fiscal year in
which the annuity or benefit was effective must be applied each year to the amount of the
monthly annuity or benefit of the annuitant or benefit recipientdeleted text begin .deleted text end new text begin ; or
new text end

new text begin (3) effective January 1, 2024, and thereafter, for each annuitant or benefit recipient who
has been receiving an annuity or benefit for at least six full months as of the immediate
preceding June 30, a postretirement increase of 1.5 percent must be applied each year to
the amount of the monthly annuity or benefit of the annuitant or benefit recipient.
new text end

(b) An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Public Employees Retirement Association requesting that the
increase not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2022, section 356.415, subdivision 1e, is amended to read:


Subd. 1e.

Annual postretirement adjustments; State Patrol retirement plan.

(a)
Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
retirement plan are entitled to an annual postretirement adjustment, effective as of each
January 1, as follows:

(1) new text begin through December 31, 2023, new text end a postretirement increase of one percent must be applied
each year to the monthly annuity or benefit of each annuitant or benefit recipient who has
been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the
calendar year immediately before the adjustment; deleted text begin and
deleted text end

(2) new text begin through December 31, 2023, new text end for each annuitant or benefit recipient who has been
receiving an annuity or a benefit for at least one full month, but less than 12 full months as
of the June 30 of the calendar year immediately before the adjustment, an annual
postretirement increase of 1/12 of one percent for each month that the person has been
receiving an annuity or benefit must be applied to the amount of the monthly annuity or
benefit of each annuitant or benefit recipientdeleted text begin .deleted text end new text begin <