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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! Comments are closed.
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