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Legislative Updates
State Of Minnesota
Post Fund to Merge with Active Fund
The Post Fund will merge with the Active Fund effective June 30, 2009. Legislation passed in 2008 called for the merger of the Post Fund assets with the Active Fund assets if the Post Fund fell below 80 percent funding ratio. As of June 30, 2008 the Post Fund was 79.7 percent funded, triggering the merger.
MRSEA supported this legislation to protect the financial security of the retirement system by providing a larger pool of assets from which to pay benefits. The three statewide retirement systems - MSRS, Public Employees Retirement Association (PERA) and Teachers Retirement Association (TRA) - will take their portion of the Post Fund and merge with their Active Fund.
The Plan will pay a fixed 2.5 percent annual adjustment to retirees regardless of inflation or investment returns. If the combined fund reaches full funding, each board will decide if the retirement plan will pay additional inflation increases.