The Minnesota legislature approved the 2025 Pension and Retirement Bill, Senate File 2884, and Governor Walz signed the bill on May 23, 2025. The bill includes several changes to MSRS pension plans.  For a full summary of the bill, see the Legislative Commission on Pensions and Retirement (LCPR) website.  Below is a summary of MSRS-specific provisions.


Benefit enhancements

The 2025 Pension and Retirement Bill includes several benefit enhancements for retired and active members.

General Employees Retirement Plan 

  • The multiplier used to calculate retirement benefits will be 1.9% per year for prospective service beginning July 1, 2025.  Allowable State service earned prior to that date will be calculated using a 1.7% multiplier.
     
  • Current and future retirees will receive a 1.75% fixed post-retirement increase beginning January 1, 2026. The current post-retirement increase is 1.5%. Retirees from the Unclassified and Legislators Plans will also receive this increase.
     
  • The benefit increases will be paid for by existing contributions and plan funding.
     

State Patrol Retirement Plan

  • Current and future retirees will receive a 1.25% fixed post-retirement increase beginning January 1, 2026. The current post-retirement increase is 1.0%. 
     
  • An annual appropriation of $2.3 million per year through 2048 will pay for the cost of this benefit increase.  
     

New working group for probation officers and 911 telecommunicators

A new working group is established to consider a new retirement plan for public-safety-adjacent positions, such as probation officers and 911 telecommunicators. This working group must complete their recommendations by January 2026.


Amortization methodology

The bill implements a modern amortization methodology for all Minnesota public pension plans. The proposed policy was the result of an amortization work group. For more information regarding the work group and the report submitted to the legislature click here.


Additional communication

Additional information about these changes and information about MSRS pension plan funded status will be communicated late summer 2025.