Governor Signs 2018 Pension Bill

(June 1, 2018) Gov. Mark Dayton signed the 2018 Omnibus Retirement Bill into law on Thursday, May 31.

“That’s the last bill I’ll sign as governor of Minnesota and what a great way to end on,” Dayton said at signing ceremony, which was attended by many Minnesotan public employees and stakeholders.

The bipartisan legislation (H.F. 3053/S.F. 2620) includes sustainability measures for all four of the state’s public pension systems, including Minnesota State Retirement System,  Teachers Retirement Association (TRA), Public Employees Retirement Association (PERA), and St. Paul Teachers Retirement Fund Association (SPTRFA).

For more information about the bill, see the Omnibus Pension Bill Summary

 

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Omnibus Pension Bill Passes House of Representatives

(May 21, 2018) The 2018 Omnibus Pension Bill (S.F. 2620) passed the House unanimously on the final day of the legislative session. Following passage in the House, the Senate concurred with some changes made to the bill affecting volunteer firefighters.

The bill is now headed to the Governor Dayton’s desk where he is expected to sign S.F. 2620 into law. Once signed, S.F. 2620 will become the largest pension reform legislation in the history of Minnesota, affecting pension benefits for more than 500,000 Minnesotans.  

The changes in the bill fix funding deficiencies of more than $700 million in the General, Correctional, and State Patrol Retirement Plans caused by longer life expectancies. The bill also funds the more than $1 billion dollars needed to sustainably reduce the expected rate of return from 8.0% to 7.5%.  The 2018 Omnibus Pension Bill ensures that the pension funds remain sustainable for the next generation of employees and retirees.

For more information about the bill, see the Omnibus Pension Bill Summary

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Pension Bill Continues to Move Through the Legislature

(May 8, 2018) The 2018 pension bill (S.F. 2026) had its first hearing in a House committee on Monday, May 7. The House Government Operations Committee unanimously passed the pension bill, without amendment, on to the next committee. The hearing comes six weeks after the Senate passed the bill unanimously.

Legislators in the House have until May 20 to take final action on the bill. For more information about the bill see the Omnibus Pension Bill Summary

For more information on the status of the pension bill, check out the LCPR Website

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2018 Omnibus Retirement Bill S.F.2620 / H.F.3053

 

(March 20, 2018) The Legislative Commission on Pensions and Retirement (LCPR) has completed its work on the 2018 Omnibus Retirement Bill. The Minnesota House and Senate versions of the bill are now working their way through the legislature.  

For updates on the status of the two bills, visit the LCPR webpage.

The bill is similar to the provisions that passed during the 2017 Session but was ultimately vetoed.

Omnibus Retirement Bill Provisions by Plan
Including General, Correctional, State Patrol, & Unclassified Retirement Plans

The changes in the bill improve the funding health of the plans 100% funded or greater within 30 years. None of the changes creates an incentive to retire before July 1, 2018.

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Board Stays Committed to Funding Bill

 

At its November 2017 meeting, the MSRS Board of Directors reaffirmed its commitment to passing funding legislation during the 2018 legislative session. While noting some shortcomings of the 2017 Omnibus Retirement Bill, the Board acknowledged that the bill addressed the funding concerns currently facing three of the MSRS pension plans.
 

Despite a strong fiscal year 2017 investment return of 15.1%, MSRS still faces a funding shortfall in these retirement plans:

  • General Employees Retirement Plan

  • Correctional Employees Retirement Plan

  • State Patrol Retirement Plan

Without legislative action, the funding shortfalls are projected to grow raising the cost of providing promised retirement benefits. The 2017 Omnibus Retirement Bill addressed this shortfall by increasing employer and employee contributions while reducing a post-retirement annual increase in the pension benefits. For more details, see 2017 Omnibus Retirement Bill Provisions by Plan.
 

The 2017 Omnibus Retirement Bill passed the MN Senate unanimously in May of 2017 during the regular legislative session. A special session version of the bill passed the House and Senate later in May but was vetoed by the governor due to additional provisions unrelated to pensions.
 

What’s Next For Pension Funding?

MSRS will continue to work closely with stakeholder groups including employee groups, state agencies, the Legislature, and retiree groups to maintain support for a funding bill in 2018. The 2018 legislative session is scheduled to start on February 20.