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SF3192 (Legislative Session 94 (2025-2026))

Public Employees Retirement Association (PERA) and general employees retirement plan circumstances in which the additional employer contribution is repealed modifications and increasing postretirement adjustments

Related bill: HF2821

AI Generated Summary

Purpose of the Bill

The bill seeks to modify retirement-related provisions for the Public Employees Retirement Association (PERA) general employees retirement plan in Minnesota. Specifically, it aims to change the circumstances under which additional employer contributions are repealed and increase the postretirement adjustments.

Main Provisions

  • Additional Employer Contribution: The bill outlines the conditions under which employers must make additional contributions to the retirement fund for general employees under PERA. This includes setting contribution rates based on historical effective dates and percentages related to employees' salaries.

  • Repeal Conditions: The bill amends the conditions under which the additional employer contributions are repealed. The repeal occurs when the actuarial value of the plan's assets meets or exceeds a specified percentage (98%) of the plan's accrued liability. The effective date for the repeal is determined to begin at the start of the first full pay period after March 31 of the calendar year when this condition is verified by an actuarial valuation.

  • Increasing Postretirement Adjustments: Although not detailed in the sections provided, the bill also includes provisions to increase postretirement benefits, enhancing the financial adjustments beneficiaries receive after retirement.

Significant Changes

  • The bill modifies conditions for when the additional employer contributions cease to be required, aligning it with the financial health of the retirement plan as evaluated by actuaries.
  • It ensures consistent and potentially larger postretirement adjustments, though the specifics on how these adjustments are calculated or increased are not detailed in the given provisions.

Relevant Terms

  • Public Employees Retirement Association (PERA)
  • General Employees Retirement Plan
  • Additional Employer Contribution
  • Actuarial Valuation
  • Accrued Liability
  • Postretirement Adjustments

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 31, 2025SenateFloorActionIntroduction and first reading
March 31, 2025SenateFloorActionReferred toState and Local Government

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the additional employer contribution requirements under section 353.27, subdivision 3a.",
      "modified": [
        "Adjusts the conditions under which the additional employer contribution requirement is applicable."
      ]
    },
    "citation": "353.27",
    "subdivision": "subdivision 3a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section references the means and manner of contribution under section 353.28.",
      "modified": []
    },
    "citation": "353.28",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section involves calculation of actuarial valuations references under section 356.215.",
      "modified": []
    },
    "citation": "356.215",
    "subdivision": ""
  }
]

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