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Association and general employees retirement plan; circumstances under which the additional employer contribution is repealed modified, and postretirement adjustments increased.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

The bill aims to modify the conditions under which additional employer contributions to the Public Employees Retirement Association's (PERA) general employees retirement plan are repealed. It also seeks to increase postretirement adjustments.

Main Provisions

  • Modification of Employer Contributions: The bill mandates additional employer contributions to the general employees retirement fund of PERA. These contributions are based on a specified percentage of the total salary of basic members and coordinated members in the retirement plan.
  • Adjustment in Contribution Rates: The bill outlines historical changes in the contribution rates, noting that previous rates from before January 1, 2006, would remain effective until adjusted in subsequent years, with significant increases beginning January 1, 2010.
  • Condition for Repeal: The bill modifies the conditions for repealing the additional employer contributions. It specifies that the contributions will continue until the actuarial value of the plan's assets meets or exceeds 98% of the plan’s liabilities. Once this financial goal is reached, the additional contributions will cease, taking effect on the first full pay period after the specified date.

Significant Changes

  • This bill increases the threshold for when the additional employer contribution can be repealed. Previously, contributions could be halted under different conditions; now they persist until the plan's assets reach the specified percentage of liabilities.
  • The increase in postretirement adjustments implies a more favorable condition for retirees, enhancing their financial security post-retirement.

Relevant Terms

public employees retirement, employer contribution, PERA, retirement plan, actuarial valuation, postretirement adjustments

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 for the Public Employees Retirement Association general employees retirement plan under section 353.27.",
      "modified": [
        "Clarifies conditions under which the additional employer contribution requirement might be postponed or repealed."
      ]
    },
    "citation": "353.27",
    "subdivision": "subdivision 3a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References to funding processes for employer contributions as per section 353.28.",
      "modified": []
    },
    "citation": "353.28",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill refers to actuarial services retained under section 356.214 regarding the calculation of the Public Employees Retirement Association's liabilities.",
      "modified": []
    },
    "citation": "356.214",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References to actuarial valuation reporting requirements as per section 356.215.",
      "modified": []
    },
    "citation": "356.215",
    "subdivision": ""
  }
]

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