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is necessary to provide a strong voice. There is strength in numbers. MRSEA is your retirement security. By joining MRSEA today, your $25 payment provides membership through December 2025. Important UpdatesImportant Update 5/15/25
The Omnibut Pension Bill has a number. It is HF 1889 and SF2884. The Legislature has finally settled on a target for public employee pensions. It is $80 million. Most of this will go toward increasing the COLA for public safety employees from 1.00% to 1.5% and to provide some early retirement provisions for teachers. The proposed increase in the MSRS and PERA COLA to 1.75% remains in the bill. The proposed increase in the multiplier for MSRS pensions from 1.7 to 1.9 also remains in the bill. These proposals can be totally funded by the pension plans and do NOT reed any additional appropriations from the Legislature. Please call your legislators and encourage them to support HF1889 AND SF2884. Pension Bill Testiomony3-25-25
Chair Frentz members of the Commission and Commission Staff. Thank you for the opportunity to speak with you today. My name is Mike Landers. I served for 27 years as a finance specialist with the Minnesota Department of Education. I’m here today on behalf of The Minnesota Retired State Employee Association (MRSEA). MRSEA was established in the 1940’s initially as a social organization, however, we expanded our focus in the early 1970’s to include advocacy on behalf of our members, particularly in the areas of pensions and group insurance. We represent thousands of retired state employees from all levels of state government and from all across the State of Minnesota and beyond. MRSEA strongly supports the provisions of HF 2237. This legislation provides a fiscally responsible and balanced approach to begin to address the needs of both active employees and retirees. It is fiscally responsible because, as the MSRS General Plan returns to full funding, it offers modest benefit increases to begin addressing the sacrifices made by all parties in the 2018 pension bill in order to restore the plans to a sound fiscal foundation. And it does so without requiring outside funding. These changes can be completely funded by the plan itself and is therefore cost neutral to the state budget. It’s balanced in that it increases the annuity benefit multiplier from 1.7 to 1.9 percent and offers a one quarter of one percent increase in retiree COLA thereby addressing the needs of both active employees and retirees. This balance has been the hallmark of successful public pension agreements in the past, both in times of sacrifice and when there have been opportunities for benefit improvements. HF 2237 is a step in the right direction and we ask that you vote for it to be included in the omnibus pension bill. However, this bill still leaves significant unmet needs. The COLA study required by the 2018 pension bill showed inflation caused a significant loss in purchasing power over a retiree’s lifetime – and that was before the surge in inflation we recently experienced. Let me give you an example of someone covered by the MSRS General Plan who retired in 2015. When I add up the differences between their pension COLA and the Annual Rate of Inflation between 2017, the first year they were eligible for a COLA and 2024, that difference is 19 percent. If the February inflation rate of 2.8 percent continues throughout the whole year, the difference will be a loss of more than 20 percent over this 9 year period. So, when resources become available in the future, we ask that you remember and address the unmet needs of the public employees who work so hard to provide the high quality of life that all Minnesotans enjoy. Thank you for the opportunity to speak with you today. Michael J. Landers, Ed.D. Legislative Committee, Chair Minnesota Retired State Employee Association UpdateFellow Members,
The Legislative Commission of Pensions and Retirement (LCPR) met for the first time this session on Tuesday, March 11. Here is a link to the commission members. https://www.lcpr.mn.gov/members.htm Presentations were made by each of the 4 retirement systems, MSRS, PERA, TRA and SPTRAFA. Copies of their presentations may be viewed by clicking on the appropriate link from the link to the agenda below. https://www.lcpr.mn.gov/meetings/agendas/2025/LCPR-20250311_agenda.htm The governing boards of MSRS and PERA recommended benefit enhancements. MSRS recommend increasing post-retirement benefits for MSRS General Plan members to 1.75% fixed beginning January 1, 2026. They also recommended increasing prospective multiplier of MSRS General Plan from 1.7% to 1.9% per year beginning July 1, 2025. The GOOD NEWS is that these proposals won’t require additional funding – costs can be absorbed by the plan. In terms of the other MSRS plans (Corrections, State Patrol, Judges), the Board authorized staff to collaborate with stakeholders regarding potential benefit modifications if appropriations are provided to fund the modifications. PERA staff is recommending that the PERA Board of Trustees supports a proposal to increase the General Plan postretirement benefit formula to 100% of CPI, 1.0% Minimum, 1.75% maximum with a provision to ensure contribution rates are not increased and the addition of a plan sustainability provision. The GOOD NEWS is that any costs associated with this proposal can be absorbed by the Plan. No member or employer rate increase will be needed. Although the Boards of TRA and SPTRAFA didn’t have specific proposals, Education Minnesota will be introducing legislation proposing an early retirement plan whereby a teacher reaching the age of 60 with 30 years of service will be able to retire without penalty. A large number of teachers were present to support the Education Minnesota proposed legislation and Education Minnesota is encouraging their members to attend every LCPR meeting. If MRSEA members want our voices to be heard, it is imperative that we show up at these meetings and advocate for our interests. If we don’t advocate for our interests, no one else will!!! LCPR meetings will be held Tuesdays at 5:00 in Room 123, State Capitol Building for the foreseeable future. This meeting was Standing Room Only and I expect future meetings will be full as well. Most of the attendees were advocating for the Teachers’ proposed legislation. So, if you plan to attend, PLEASE COME EARLY!!! Please note that the doors to the Capitol are locked at 5:00 p.m. so if you are going to attend, please make sure you are in the Capitol Building well before that time! See our LEGISLATIVE UPDATES page for 2023-2024 Highlights!
Fellow Members,
Attached is a link to the 2025-2026 members of The Legislative Commission on Pensions and Retirement (LCPR). Although no meetings are scheduled as yet, it is not too early to contact them and let them know how inflation is eroding the value of your pension. If you are a constituent of any of these members, it is of even more importance that you contact them and ask them to partner with us in seeking relief. https://www.lcpr.mn.gov/members.htm Many of our members ask how they can personally get involved in expressing their opinion to their legislative representatives on pension and retirement matters or other issues important to them.
It is unclear how the Minnesota House will proceed this session. As of 1-23-25, the several questions regarding this issue are before the Minnesota Supreme Court. All we can say at this time is “Stay Tuned”. As you may know, the vast majority of any actions regarding changes to public employee pension systems originate in the Legislative Commission on Pensions and Retirement, the LCPR. The LCPR is a bipartisan body composed of members of both parties from both the Minnesota House and Senate. Because of the uncertainty regarding the House, members of the LCPR have not even been named at this point. Check for updates, scheduled meetings, meeting agendas etc. at: https://www.lcpr.mn.gov/ When members of the LCPR are named, we will ask you to contact them, especially if you are a constituent, and let them know of your concerns. In the meantime, please contact your legislator and let them know how inflation has eroded the value of your pension over time. See our TAKE ACTION page. |
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