2023 Session Information
The 2023 Minnesota legislative session began on January 3, 2023 and ended on May 22, 2023.
The bills were signed into law by the Governor on May 19, 2023:
- Pension and Retirement Omnibus Policy Bill as Session Laws 2023, Chapter 47, and
- Pension Budget Omnibus Bill as Session Laws 2023, Chapter 45.
MSRS Plan Provisions
Assumed Investment Return
On July 1, 2023, the assumed investment return decreased from 7.5% to 7% for valuing pension plan liabilities.
Plan Funding
Appropriations to MSRS pension plans totaled over $99 million to help reduce pension plan liabilities, enhance some benefits for active members of the General Plan, provide a one-time non-compounding increase to retirees, and extend supplemental funding for certain plans:
- General Plan employee contributions temporarily decreased to 5.5% for two years from July 2023 through June 2025.
- In 2024, MSRS retirees received a one-time, non-compounding payment in addition to their recurring pension payment.
- General Plan participants who retire early can receive their post-retirement annual increase without delay.
- General Plan vesting changed from five years to three years for active employees on and after July 1, 2023.
- Supplemental funding for Correctional Plan, State Patrol Plan, and Judges Plan will stop if the plan is 100% funded for three years.
State Patrol Disability Benefits
Before being approved for duty disability benefits, State Patrol Plan participants must complete a new psychological treatment program. The bill created a new total and permanent duty disability benefit for State Patrol Plan members.
Resources
2023 LCPR Summary of Pension and Retirement Omnibus Policy Bill