Labor & Employment (Retirement Benefits) in Minnesota

in committee · Minnesota · Senate Apr 1, 2025

SF 2984: Minnesota Secure Choice Retirement program penalties for noncompliance addition provision

This bill adds financial penalties for Minnesota employers that fail to comply with the Minnesota Secure Choice Retirement Program requirements. Covered employers face escalating fines starting at $100 per employee (capped at $4,000) on the second anniversary of noncompliance, increasing to $500 per employee annually after the fourth year. Employers must be notified in writing before penalties apply and can avoid them by correcting violations within 30 days. The bill also creates misdemeanor charges for willful, intentional failure to remit withheld employee contributions and allows employees or the attorney general to pursue civil or criminal action for noncompliance. It directly affects private employers in Minnesota required to participate in the state's retirement savings program.

Topics ✓ Labor & Employment

Sub-Topics Retirement Benefits

in committee · Minnesota · Senate May 7, 2025

SF 3493: Public Employees Retirement Association employer failure to record service correction provision and employee and employer contributions on omitted service and extending Rule of 90 eligibility for an eligible employee requirement provision

This bill corrects a specific employer error for one public employee. It requires Robbinsdale School District (ISD 281) to pay retroactive contributions plus interest for unreported pre-1989 service by Alaine Pappin, based on $3,185 in omitted salary. These payments will retroactively establish Pappin's eligibility for a public pension and an unreduced early retirement benefit under existing law. The bill applies solely to this case and does not create a general policy for other employees.

Topics ✓ Labor & Employment

Sub-Topics Public Employees Retirement Benefits

in committee · Minnesota · House Apr 29, 2025

HF 3269: Minnesota State Retirement System correctional state employees retirement plan; MSRS correctional plan eligibility work group recommendations implemented, eligible employment positions updated, definitions added, procedures for adding or removing plan coverage modified, right to appeal added, and conforming changes made.

HF 3269 implements recommendations from a work group to update Minnesota's retirement plan for correctional state employees. It expands eligibility to include more specific job roles involving direct contact with inmates or patients in state correctional facilities, forensic programs, or sex offender treatment centers. The bill adds new definitions (like "direct contact" and "custody"), modifies procedures for adding/removing retirement coverage, and introduces a formal right to appeal coverage decisions. These changes affect correctional staff whose duties involve maintaining safety and security in state-operated facilities. The bill amends multiple sections of Minnesota Statutes to reflect these updates.

Topics ✓ Labor & Employment

Sub-Topics Retirement Benefits

in committee · Minnesota · House Apr 2, 2025

HF 3052: Teachers Retirement Association; unreduced retirement annuity provided upon reaching age 60 with 30 years of service, early retirement reduction factors modified for annuity commencement before normal retirement age, postretirement adjustments increased, other various retirement provision modified, and money appropriated.

This bill modifies retirement benefits for Minnesota teachers in the Teachers Retirement Association (TRA). It allows teachers who reach age 60 with 30 years of service to receive an unreduced retirement annuity (previously subject to reductions). The bill also adjusts early retirement reduction factors for those retiring before normal retirement age, increases postretirement adjustments, and removes delays for early retirees. Additionally, it raises employer contribution rates (e.g., from 8.75% to 9.5% for coordinated members) and adjusts pension adjustment revenue for school districts, effective July 2025. These changes directly affect TRA members and school districts funding retirement benefits.

Topics ✓ Budget & Taxes ✓ Education ✓ Labor & Employment

Sub-Topics Pensions Retirement Benefits

in committee · Minnesota · Senate Apr 1, 2025

SF 2640: Community first services and supports reimbursement rates modifications provision, certain consumer-directed community supports budgets increase provision, Minnesota Caregiver Defined Contribution Retirement Fund Trust establishment provision, and appropriation

This bill increases reimbursement rates for certain direct support services in Minnesota. It raises the rate for personal care assistants and Community First Services and Supports (CFSS) providers serving clients needing 10+ hours daily from 107.5% to 112.5% (effective 2026), requiring all additional revenue to fund wages and wage-related costs - not other benefits. It also establishes a new Minnesota Caregiver Defined Contribution Retirement Fund Trust, where the state contributes to retirement plans for union-represented direct support workers. These changes apply to providers working under specific programs and collective bargaining agreements. The bill appropriates funds to implement these rate modifications and retirement trust provisions.

Topics ✓ Budget & Taxes ✓ Labor & Employment

Sub-Topics Collective Bargaining Retirement Benefits

in committee · Minnesota · House Mar 11, 2025

HF 1582: Teachers Retirement Association; unreduced retirement annuity upon reaching age 60 with 30 years of service provided, early retirement reduction factors for annuity commencement before normal retirement age modified, postretirement adjustments increased, other various retirement provisions modified, and money appropriated.

HF 1582 modifies Minnesota's Teachers Retirement Association (TRA) benefits for educators. It allows teachers with 30 years of service to retire at age 60 without reduced annuity payments (previously requiring 35 years), adjusts early retirement penalties, and increases postretirement cost-of-living adjustments. The bill also raises employer contribution rates for school districts (from 13.3% to 17.3% for basic members) and increases pension adjustment revenue rates for school districts starting in 2026. These changes directly affect current and future TRA members, school districts funding retirement costs, and the state's retirement system budget.

Topics ✓ Budget & Taxes ✓ Education ✓ Labor & Employment

Sub-Topics Pensions Teachers Retirement Benefits

in committee · Minnesota · House Feb 13, 2025

HF 708: Public employee retirement association board of trustees member addition provided.

HF 708 amends Minnesota Statutes 2024, section 353.03, to require that one of the six trustees elected by PERA members must be a current member of the local government correctional service retirement plan. This change increases the total number of elected trustees from five to six, ensuring direct representation for correctional service employees on the Public Employees Retirement Association board. The bill modifies the board's composition without altering election procedures or voting requirements. It specifically targets representation for correctional service retirees within PERA's governance structure.

Topics ✓ Labor & Employment

Sub-Topics Public Employees Retirement Benefits

in committee · Minnesota · House Apr 21, 2025

HF 1339: Public employees police and fire retirement plan; payment of a normal retirement annuity without reduction or suspension upon employment or reemployment on or after 55 years of age permitted.

This bill allows public employees in Minnesota's police and fire retirement plan who are 55 years or older to receive their full retirement pay without reduction or suspension when they return to government employment. It amends retirement laws to require the retirement plan administrator to pay a normal retirement annuity without cutting it off due to reemployment, provided the retiree has reached age 55. The law also clarifies that continued employment does not change the annuity amount, and neither the member nor their employer must make additional retirement contributions. These changes take effect January 1, 2026.

Topics ✓ Labor & Employment

Sub-Topics Retirement Benefits Workforce Development

in committee · Minnesota · House Mar 26, 2025

HF 2821: Public Employees Retirement Association and general employees retirement plan; circumstances under which the additional employer contribution is repealed modified, and postretirement adjustments increased.

HF 2821 modifies Minnesota's public employee retirement system by changing when additional employer contributions end and increasing cost-of-living adjustments for retirees. It repeals the extra employer contribution once the retirement fund's assets reach 98% of liabilities (based on actuarial reports), effective after March 31 of the year following the valuation. The bill also raises the maximum annual cost-of-living adjustment for PERA retirees from 1.5% to 1.75%, but this higher rate drops to 1.5% if fund assets fall below 85% of liabilities. These changes directly affect current and future retirees in Minnesota's Public Employees Retirement Association (PERA) system and the state/local governments that fund the retirement plans.

Topics ✓ Labor & Employment

Sub-Topics Public Employees Retirement Benefits

in committee · Minnesota · House Apr 3, 2025

HF 2367: Community first services and supports reimbursement rates modified, consumer-direct community supports budgets increased, Minnesota Caregiver Defined Contribution Retirement Fund Trust established, and money appropriated.

This bill modifies reimbursement rates for community support services, increasing them to 107.5% (effective now) and 112.5% (effective January 1, 2026) for providers serving clients needing 10+ hours daily. It requires providers to use all additional revenue solely for staff wages and related costs (like payroll taxes), not for benefits like health insurance. The bill also creates the Minnesota Caregiver Defined Contribution Retirement Fund Trust, a joint state-union retirement savings plan for union-represented direct support workers. These changes directly affect community support service providers, their employees, and Minnesota’s human services budget.

Topics ✓ Budget & Taxes ✓ Healthcare ✓ Labor & Employment

Sub-Topics Collective Bargaining Retirement Benefits

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