Labor & Employment (Retirement Benefits) in Minnesota

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Association and general employees retirement plan; circumstances under which the additional employer contribution is repealed modified, and postretirement adjustments increased.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

in committee · Minnesota · House Apr 1, 2025

HF 2942: Commissioner of employment and economic development required to disclose information, and administrative and technical changes made to the Minnesota Secure Choice Retirement Program Act.

HF 2942 requires Minnesota's Commissioner of Employment and Economic Development to disclose employer information to the Secure Choice Retirement Program within 30 days of a request. This affects businesses with 5+ employees that don’t already offer retirement plans, as they may be designated as "covered employers" needing to enroll staff. The bill creates a certification process allowing entities to formally claim they’re not covered employers (e.g., due to size, existing plans, or government status), with a 30-day review period by the program’s executive director. It also clarifies key terms like "enrollment window" for phased program implementation under Minnesota Statutes.

Topics ✓ Labor & Employment

Sub-Topics Professional Licensing Retirement Benefits

in committee · Minnesota · Senate Apr 10, 2025

SF 2523: Teachers Retirement Association provisions modifications and appropriation

SF 2523 modifies Minnesota's Teachers Retirement Association (TRA) rules to improve retirement benefits for educators. It allows teachers to retire without penalty at age 60 with 30 years of service, adjusts early retirement reductions, and removes delays for postretirement adjustments. The bill increases employer contributions to the TRA fund (from 13.3% to 17.3% for most members by 2026) and raises school district pension adjustment rates (from 1.05% to 2.05% by 2026). These changes directly affect public school teachers in the TRA system, school districts funding retirement, and the state budget through new appropriations.

Topics ✓ Budget & Taxes ✓ Education ✓ Labor & Employment

Sub-Topics Pensions Teachers Retirement Benefits

in committee · Minnesota · House Mar 26, 2025

HF 1779: Unreduced early retirement annuity authorized for probation agency employees, and employee contributions increased for probation agency employees increased beginning January 1, 2026.

HF 1779 authorizes an unreduced early retirement annuity for probation agency employees in Minnesota who separate from service after reaching age 60 or with at least 35 years of service, meaning they receive their full pension amount without reduction starting January 1, 2028. It also increases the employee contribution rate for these workers, requiring a higher percentage of their salary toward retirement benefits beginning January 1, 2026. The bill defines "probation agency employees" as county or state employees who provide community supervision services or oversee probation programs, including probation officers, supervisory staff, and program managers. These changes specifically affect probation staff in Minnesota's county and state agencies.

Topics ✓ Labor & Employment

Sub-Topics Retirement Benefits

in committee · Minnesota · Senate Apr 22, 2025

SF 1986: Unreduced early retirement annuity for probation agency employees authorization; probation agency employee contributions increase authorization

This bill, SF 1986, creates a new retirement benefit for Minnesota probation agency employees (including county/state probation officers, supervisors, and program managers) who separate after age 60 or with 35 years of service. It authorizes them to receive a full retirement annuity without any reduction for early retirement, effective January 1, 2028. The bill also specifies that these employees must contribute 6% of their salary to the retirement fund starting January 1, 2026 - matching the rate for other state employees - rather than increasing their contributions. The changes amend multiple sections of Minnesota’s retirement statutes to define eligibility and contribution requirements for this group.

Topics ✓ Labor & Employment

Sub-Topics Retirement Benefits

in committee · Minnesota · Senate Mar 10, 2025

SF 2379: Maximum employer contribution increase authorization for the higher education supplemental retirement plan

This bill increases the maximum annual employer contribution limit for the higher education supplemental retirement plan from $2,700 to $4,300 per employee. It directly affects employees of Minnesota State Colleges and Universities covered by the supplemental retirement plan under chapter 354C. The key change amends Minnesota Statutes section 356.24 to allow matching employer contributions up to $4,300 yearly, replacing the previous $2,700 cap. The change applies to plans established in collective bargaining agreements or personnel policies for these employees.

Topics ✓ Education ✓ Labor & Employment

Sub-Topics Collective Bargaining Retirement Benefits

in committee · Minnesota · House Apr 1, 2025

HF 2943: Minnesota Secure Choice Retirement Program; penalties for noncompliance added, and criminal penalties provided.

HF 2943 adds enforcement mechanisms to Minnesota's Secure Choice Retirement Program. It imposes escalating financial penalties on employers who fail to enroll eligible employees or distribute required information (starting at $100 per employee on the second anniversary of noncompliance, rising to $500 annually after the fourth year). The bill also creates a misdemeanor charge for employers who willfully fail to remit employee contributions withheld from paychecks within 10 days of a demand. Employers must pay withheld contributions plus interest for delays, and employees or the attorney general can pursue civil or criminal action for violations. This directly affects Minnesota employers participating in the Secure Choice program.

Topics ✓ Labor & Employment

Sub-Topics Retirement Benefits

in committee · Minnesota · House Mar 10, 2025

HF 2022: Higher education supplemental retirement plan; maximum employer contribution increased.

HF 2022 amends Minnesota Statutes to increase the maximum annual employer contribution for the supplemental retirement plan covering employees of the Minnesota State Colleges and Universities (MnSCU) system. Specifically, it raises the cap from $2,700 to $4,300 per employee per year for employer matching of employee contributions under this plan. This change directly affects MnSCU employees participating in the supplemental retirement plan, as it allows their employers to contribute more toward their retirement savings. The provision applies only to plans established under collective bargaining agreements or personnel policies that require dollar-for-dollar matching of employee contributions. The bill does not create new retirement programs but adjusts the funding limit for an existing plan.

Topics ✓ Labor & Employment

Sub-Topics Collective Bargaining Retirement Benefits

in committee · Minnesota · House Apr 28, 2025

HF 3256: Public employees police and fire retirement plan; reemployment earnings limit applicable to disability benefit payments increased.

HF 3256 increases the earnings limit for police, firefighters, and paramedics receiving disability benefits under Minnesota's public employees retirement plan. The bill raises the threshold from 125% to 150% of the base monthly salary for comparable positions. This means eligible public safety workers can earn more while working part-time or in other jobs before their disability benefits are reduced. The change applies to members who began disability payments on or after July 1, 2023, and modifies how benefits are adjusted when reemployment earnings exceed the new limit. It directly affects current disability benefit recipients in these professions who return to work.

Topics ✓ Labor & Employment

Sub-Topics Retirement Benefits Workforce Development

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