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Overview
This bill shifts two percent of pension plan contributions from employers to employees for a variety of state and local public pension plans.
Section-by-Section Summary
Article 1
Minnesota State Retirement System
Section 1 [Legislators Plan.] increases the member contribution rate for the legislative pension plan, provided to legislators elected before 1997 who have elected to remain in the plan, from 9.0 percent to 11 percent.
Sections 2 and 3 [Minnesota State Retirement System (MSRS).] increases the employee contribution rate for the MSRS general plan (and the unclassified plan) from 5.0 to 7.0 percent and decreases the employer contribution for the MSRS general plan from 5.0 to 3.0 percent.
Sections 4 and 5 [MSRS Correctional Pension Plan.] increases the employee contribution rate for the MSRS correctional pension plan from 8.6 percent to 10.6 percent, and decreases the employer contribution by the same amount, from 12.10 to 10.10 percent.
Section 6 [MSRS Unclassified Employees Retirement Program.] decreases the employer contribution for the state unclassified employees defined contribution plan from 6.0 to 4.0 percent. The employee contribution increase is provided by section 2 of this bill.
Sections 7 and 8 [Judges Retirement Plan.] increases pension plan contribution rates for judges from 8.0 to 10 percent of salary and reduces the employer contribution for judges from 20.5 to 18.5 percent of salary. These changes apply only to judges who take office for the first time after this section becomes effective.
Article 2
Other Retirement Plans
Sections 1 and 2 [Public Employees Retirement Association (PERA) General Employee Retirement Plan.] increases the employee contribution rate for basic members of the PERA general plan from 9.1 to 11.1 percent of salary and for coordinated members from 6.0 percent to 8.25 percent of salary; section 2 reduces the employer contribution rate for basic members from 9.1 to 7.1 percent, and the employer contribution rate for coordinated members from 6.25 to 4.25 percent.
Section 3 [PERA Correctional Employee Plan.] increases the employee contribution rate for the local government correctional service retirement plan from 5.83 of salary to 7.83 percent of salary, and reduces the employer contribution for the same plan from 8.75 to 6.75 percent of salary.
Section 4 [Teachers Retirement Association.] increases the contribution rate for employees provided in law by three percent from the annual adjustments provided in current law. Under current law, the rate will increase each year until 2014 from 9.0 percent to 11.5 percent beginning July 1, 2011. The bill will increase the contribution to a rate that corresponds to an amount that is two percentage points greater than each change in the current schedule provided for employee contribution rate increases. The same changes are made to the coordinated member contributions provided in paragraph (b), so that those contributions will increase from 5.5 percent to 9.5 percent in July of 2011.
Section 5 [Teachers Retirement Association Employer Contributions.] changes the contribution schedule for the employer contribution provided by Special School District No. 1, Minneapolis, to correspond to the changes made in section 4 by decreasing the employer contribution for the Minneapolis School System so that coordinated and basic members employers contribute at a rate that corresponds to two percentage points less than the schedule provided in current law for those contributions.
Paragraph (b) adjusts the employer contribution for all other employers in the Teachers Retirement Association pension plan so that contributions are decreased to an amount that is two percentage points less than the schedule of increases provided in current law.
Sections 6 and 7 [Duluth Teachers Retirement Plan and St. Paul Teachers Retirement Fund.]
Section 6 adjusts employee contributions to increase them by two percentage points for each year provided in the current schedule of contribution rate increases. Section 7 provides corresponding changes to the employer contributions required for Duluth and St. Paul.
TSB/rdr
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