1.1.................... moves to amend S.F. No. 545; H.F. No. 565, the delete everything
1.2amendment (S0545-2A) as follows:
1.3Page 119, after line 9, insert:
1.4 "Sec. 2. Minnesota Statutes 2016, section 353.651, is amended by adding a subdivision
1.5to read:
1.6 Subd. 6. Former local police and paid fire relief association postretirement
1.7adjustment. (a) The executive director of the Public Employees Retirement Association
1.8shall adjust the service pension, disability benefit, or surviving spouse benefit
for any person
1.9who was a former member of a local salaried police or firefighters relief association
that
1.10was governed by Minnesota Statutes 2012, section 69.77, that consolidated with the
public
1.11employees police and fire retirement plan under Minnesota Statutes 2012, chapters
353A
1.12and 353B, and who elected to retain or whose benefit was a result of an election to
retain
1.13the calculation of the service pension, disability benefit, or surviving spouse benefit
under
1.14the former local police or firefighters relief association laws, articles of incorporation,
and
1.15bylaws. The postretirement adjustment must be according to paragraph (b).
1.16(b) Effective July 1, 2017, the service pension, disability benefit, or surviving
spouse
1.17benefit of persons described in paragraph (a) must be adjusted as follows:
1.18(1) all persons receiving a service pension based on 20 years or more of service or
a
1.19disability benefit must have their benefits increased to $38,000 annually or by 20
percent,
1.20whichever amount is less; and
1.21(2) all surviving spouses who receive a benefit must have their benefits increased
to
1.22$30,000 annually or by 20 percent, whichever is less.
1.23(c) Benefits as adjusted by paragraph (b) must continue to be adjusted on January
1,
1.242018, and each successive January 1, by the postretirement adjustment rate under section
1.25356.451, subdivision 1e.
1.26(d) The estimated increase in the actuarial accrued liability of the public employees
1.27police and fire retirement plan for the postretirement adjustments in this subdivision
is
1.28$8,490,000, as of July 1, 2014. The state shall make an annual payment each July 1
to the
1.29association in an amount necessary to amortize the actuarial accrued liability in
ten
1.30substantially equal annual installments, over a period that begins July 1, 2017, and
ends
1.31with a final payment on July 1, 2026. The actuarial accrued liability and the annual
amount
1.32shall be redetermined by the executive director of the association to take into account
fewer
1.33annual payments, changes in actuarial assumptions, and other factors deemed relevant
by
2.1the executive director. The executive director shall notify the state of the redetermined
2.2annual amount by June 1 each year.
2.3EFFECTIVE DATE.This section is effective the day following final enactment and
2.4the postretirement adjustment under paragraph (b) is first payable July 1, 2017."
2.5Amend the title accordingly