The 2018 Pension Omnibus Bill passed to the Senate Floor this week and is waiting to be heard. The major pension plan administrators testified in support of the bill and most stakeholders are supportive of the sustainability plan.
The bill is mostly comprised of the 2017 Omnibus Pension Bill that passed the senate floor unanimously last session but did not become law because it was combined with unrelated controversial provisions. The most significant change is the addition of pension adjustment revenue on the education formula to compensate school districts for the increased Teachers’ Retirement Association employer contributions required in the bill. The estimated cost is $27 million this biennium.
The bill represents a shared sacrifice approach, with current public employees, employers, retirees, and the state contributing to ensure the long-term stability of Minnesota’s public pension obligations. (S.F. 2620)