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​

Fellow 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!   ​