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SF3467 (Legislative Session 94 (2025-2026))

Pensions provisions modification

AI Generated Summary

Purpose of the Bill

This bill aims to revise and improve Minnesota's statutes regarding pensions and retirement for government employees. It focuses on making technical changes, clarifications, and corrections to various aspects of these statutes, including the practices for reporting, the organization of state retirement plans, and eliminating outdated provisions.

Main Provisions

  • Legislative Commission on Pensions and Retirement Updates: The bill revises the duties and processes of the commission responsible for studying and making recommendations on government employee retirement plans. This includes updating standards for pension valuations and cost estimates to ensure they are aligned with modern accounting and actuarial practices.
  • Membership Adjustments: There are changes in how commission members from the Senate and House of Representatives are appointed and how vacancies are filled during legislative sessions and off-sessions.
  • Statewide Volunteer Firefighter Plan: Modifications address the administration and financial operation of this plan, ensuring efficient management and transparency in funding and liabilities.
  • Pension Plan Transfers: Adjustments are made to processes involving transfer of involvement from certain tuition-funded retirement plans (IRAP) to the Teacher’s Retirement Association (TRA).
  • Repeal of Obsolete Reporting Requirements: The bill eliminates outdated statutory provisions and reporting requirements to streamline operations for the State Board of Investment and related entities.
  • Supplemental State Aid and Defined Contribution Plans: Clarifications and updates address the distribution and management of supplemental state aid to police and firefighter retirement systems and make necessary updates to defined contribution plans for public employees.

Significant Changes to Existing Law

  • By repealing some statutory sections and refining others, the legislation seeks to eliminate redundancies, outdated procedures, and unclear terminology in retirement-related laws.
  • The bill adopts updated standards that are consistent with generally accepted accounting principles for better governance of public pension plans.
  • It enhances the structure and function of the legislative commission responsible for overseeing public employee pensions, ensuring their operations are more transparent and efficient.

Relevant Terms

  • Pension Plans
  • Retirement Legislation
  • State Board of Investment
  • Defined Contribution Plan
  • Volunteer Firefighter Plan
  • Supplemental State Aid
  • Actuarial Standards
  • Accounting Principles

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 29, 2025SenateFloorActionIntroduction and first reading
April 29, 2025SenateFloorActionIntroduction and first reading
April 29, 2025SenateFloorActionReferred toState and Local Government

Citations

 
[
  {
    "analysis": {
      "added": [
        "Standards must include financial funding or valuation requirements beyond generally accepted accounting principles."
      ],
      "removed": [],
      "summary": "The commission is required to adopt standards for pension valuations and cost estimates for public employee pension plans.",
      "modified": [
        "Standards for calculating, evaluating, and displaying projected liabilities and costs must be periodically updated."
      ]
    },
    "citation": "356.20",
    "subdivision": "subdivision 2"
  }
]

Sponsors