Purpose of the Bill

The bill aims to modify certain aspects of the Public Employees Retirement Association (PERA) general employees retirement plan in Minnesota. Its main focus is on improving the terms under which additional employer contributions are repealed and on increasing post-retirement adjustments for members.

Main Provisions

• Additional Employer Contributions:

  • The bill outlines an additional contribution that employers must make to the retirement fund, based on a percentage of the salary of both basic and coordinated plan members.
  • These contribution rates are differentiated by effective dates, with the latest since January 1, 2010, being 2.68% for the Basic Program and 1% for the Coordinated Program.

• Repeal Condition for Contributions:

  • The requirement for additional employer contributions is set to be repealed once the assets of the retirement plan reach 98% or more of the plan's liabilities, according to actuarial assessments. The repeal will take effect at the start of the first pay period following March 31 of the next calendar year after the relevant actuarial valuation report.

• Postretirement Adjustments:

  • The bill seeks to increase adjustments for retirees' benefits, though specific percentages or methods are not detailed in the provided text.

Significant Changes to Existing Law

• The conditions under which additional employer contributions to the retirement plan are repealed are clearly defined, focusing on achieving a specific asset-to-liability ratio (98%).
• Enhancements to post-retirement benefit adjustments suggest a focus on increasing the financial well-being of retirees, although specific details are not included in this text.

Relevant Terms

retirement plan, Public Employees Retirement Association, additional employer contribution, actuarial valuation, postretirement adjustments, employer pension contributions, asset-liability ratio, retirement benefits.