SF2379

Purpose of the Bill

This bill aims to amend existing Minnesota law regarding retirement benefits for employees of governmental subdivisions, specifically focusing on increasing the maximum employer contributions to higher education supplemental retirement plans.

Main Provisions

• The bill proposes to increase the maximum contribution that employers can make to certain supplemental retirement plans for employees of the Minnesota State Colleges and Universities.
• The maximum annual employer contribution is raised from $2,700 to $4,300 for each eligible employee, where contributions match employee contributions on a dollar-for-dollar basis.
• The bill outlines exceptions that allow governmental agencies to contribute public funds to supplemental pension or deferred compensation plans, maintaining the legality of such contributions under specific conditions.

Significant Changes to Existing Law

• Existing law currently caps the maximum employer contribution to higher education supplemental retirement plans at $2,700 annually. This bill increases that cap to $4,300, allowing for higher savings potential for retirement.

Relevant Terms

• Supplemental retirement plans
• Employer contribution
• Minnesota State Colleges and Universities
• Higher education retirement benefits
• Deferred compensation
• Collective bargaining agreement