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HF2821 (Legislative Session 94 (2025-2026))

Public Employees Retirement Association and general employees retirement plan; circumstances under which the additional employer contribution is repealed modified, and postretirement adjustments increased.

Related bill: SF3192

AI Generated Summary

Purpose of the Bill

This bill aims to modify the retirement plan rules for the Public Employees Retirement Association (PERA) general employees in Minnesota by altering when an additional employer contribution is no longer required and by increasing post-retirement adjustments.

Main Provisions

  • Additional Employer Contribution Repeal: The bill updates conditions under which the additional employer contribution to the general employees retirement fund is repealed. The contribution will be repealed once the actuarial value of the plan's assets equals or exceeds 98% of the actuarial accrued liability.
  • Increased Postretirement Adjustments: The bill suggests increasing the post-retirement adjustments for retirees, although specific percentage increases are implied but not detailed in the provided excerpt.

Significant Changes to Existing Law

  • The repeal of the additional employer contribution is now tied to a specific valuation of plan assets relative to liabilities (98%) rather than being open-ended.
  • Contributions required for various time periods are detailed, rolling previous contribution rates up to 2010 into current consideration.

Relevant Terms

Public Employees Retirement Association, employer contribution, retirement fund, actuarial valuation, postretirement adjustments, liability, assets.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 25, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the circumstances under which the additional employer contribution is repealed under section 353.27.",
      "modified": [
        "Details the specific conditions for repealing additional employer contributions based on actuarial assessments."
      ]
    },
    "citation": "353.27",
    "subdivision": "subdivision 3a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section increases postretirement adjustments.",
      "modified": [
        "Enhances the postretirement adjustment details under the specified section."
      ]
    },
    "citation": "356.415",
    "subdivision": "subdivision 1b"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This statute provides guidance on how funds are made available for contributions.",
      "modified": [
        "Clarifies the available methods and means for making employer contributions."
      ]
    },
    "citation": "353.28",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section involves the actuarial valuation report necessary for contribution assessments.",
      "modified": [
        "Outlines the requirements for actuarial valuation necessary to determine contribution rates."
      ]
    },
    "citation": "356.215",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section concerns the determination of actuarial accrued liability for retirement plans.",
      "modified": [
        "Specifies actuarial liabilities and their valuation methods."
      ]
    },
    "citation": "356.214",
    "subdivision": ""
  }
]

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