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SF1122 (Legislative Session 94 (2025-2026))

Public employees postretirement adjustments increase

Related bill: HF139

AI Generated Summary

The legislative bill S.F. No. 1122 is designed to modify the terms for postretirement adjustments for members of the public employees police and fire retirement plan and the state patrol retirement plan in Minnesota. The key changes proposed in the bill include:

  1. Increasing the annual postretirement adjustment. This adjustment will amount to 1% annually or potentially more based on federal cost-of-living adjustments if those exceed 2%. The maximum increase that can be applied is 1.5%.

  2. The bill also seeks to decrease the waiting period for receiving the postretirement adjustments. Previously, a recipient needed to have been receiving benefits for at least 36 months to get a full increase. With the new bill, recipients can start receiving adjustments with at least 25 months of receiving benefits, with the increase amount being proportionally adjusted based on the duration of receiving the benefits.

These adjustments will be applied automatically each year unless the recipient opts out. The main intent behind these changes is to offer a better financial adjustment for retirees in keeping with cost of living changes, effectively providing more support to retired public employees including police, fire fighters, and state patrol officers.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 05, 2025SenateFloorActionIntroduction and first reading
February 05, 2025SenateFloorActionReferred toState and Local Government

Citations

 
[
  {
    "analysis": {
      "added": [
        "A provision allowing adjustments based on federal Social Security cost-of-living announcements."
      ],
      "removed": [
        "Previous fixed adjustment percentages without regard to federal cost-of-living data."
      ],
      "summary": "This bill modifies postretirement adjustments for the public employees police and fire retirement plan under section 356.415.",
      "modified": [
        "Change in formula for calculating percentage increase based on duration of benefit receipt."
      ]
    },
    "citation": "356.415"
  },
  {
    "analysis": {
      "added": [
        "Incorporation of federal cost-of-living adjustments as a basis for percentage increases."
      ],
      "removed": [],
      "summary": "This bill references federal law for determining cost-of-living adjustments under United States Code title 42 section 415.",
      "modified": []
    },
    "citation": "United States Code title 42 section 415"
  }
]

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