SF3355 (Legislative Session 94 (2025-2026))
Public Employees Retirement Association expansion of coverage governing privatization to include governmental subdivisions provision, administrative changes provision, withdrawal liability calculation method revision provision, and annual reporting requirement expansion provision
AI Generated Summary
Purpose of the Bill
The bill aims to modify and expand the Public Employees Retirement Association (PERA) General Employees Retirement Plan provisions. It specifically targets employees in governmental subdivisions that undergo privatization, ensuring they retain access to retirement benefits based on their contributions before the privatization.
Main Provisions
- Coverage Expansion: The bill expands retirement plan coverage to include employees of governmental subdivisions that have become privatized, ensuring that these employees receive retirement benefits post-privatization.
- Withdrawal Liability Calculation: It introduces a new method for calculating the withdrawal liability for privatized employers. This involves determining the financial responsibility of privatized employers towards the retirement plan when their public employee status changes.
- Reporting Requirements: The bill expands the annual reporting requirements for privatizations, ensuring transparency and accountability in communicating financial impacts and obligations following privatization.
- Eligibility for Benefits: Changes are made to define eligibility for early retirement and disability benefits for privatized former public employees, maintaining benefit rights post-privatization.
Significant Changes to Existing Law
- Definition and Handling of Privatization: The bill revises the definition and process of privatization in the context of retirement benefits. It provides precise terms for how privatized entities should handle retirement benefits, especially concerning calculating withdrawal liabilities and fulfilling payment obligations.
- Statutory Repeal: One section of the Minnesota Statutes related to this topic is repealed to align legal frameworks with the bill's provisions.
- Augmentation Rates and Vesting Rules: Adjustments are made to the augmentation interest rates and vesting rules for privatized employees to ensure their retirement calculations are equitable and consistent with their service.
Relevant Terms
withdrawal liability, privatization, Public Employees Retirement Association, governmental subdivisions, retirement benefits, early retirement, disability benefits, augmentation rates, privatized employers, reporting requirements, vesting rules
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| April 08, 2025 | Senate | Floor | Action | Introduction and first reading | |
| April 08, 2025 | Senate | Floor | Action | Referred to | State and Local Government |
Citations
[
{
"analysis": {
"added": [
"Clarifications on terminologies around privatization."
],
"removed": [],
"summary": "The reference is related to defining 'governmental subdivision' for privatized employees.",
"modified": []
},
"citation": "353.01",
"subdivision": "subdivision 6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The section pertains to the eligibility of privatized former public employees to receive a retirement annuity.",
"modified": []
},
"citation": "353.29",
"subdivision": ""
},
{
"analysis": {
"added": [
"Enhanced augmentation rates for specific categories of former public employees."
],
"removed": [],
"summary": "Applies to the augmentation rate of deferred annuities for privatized former public employees.",
"modified": []
},
"citation": "353.34",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Concerns the reemployed annuitant earnings limitations for privatized employees.",
"modified": [
"Requires compliance with reemployment limitations post-privatization."
]
},
"citation": "353.37",
"subdivision": ""
},
{
"analysis": {
"added": [
"Details on how benefits are to be calculated."
],
"removed": [],
"summary": "Used for calculating disability benefits for privatized former public employees.",
"modified": []
},
"citation": "353.33",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
"Extends coverage rules to survivors of privatized former employees."
],
"removed": [],
"summary": "These sections apply to surviving spouses and dependent children after privatization.",
"modified": []
},
"citation": "353.32",
"subdivision": ""
}
]