Legislative Commission on Pensions and Retirement

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Upcoming Commission meetings:

  No meetings scheduled

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LCPR News and Developments

 LCPR Work Groups for 2024 Interim

During the last week of July, LCPR staff convened the first meetings of two work groups, each of which is required to meet during the interim and recommend legislation to address a pension policy issue that the Commission discussed during the 2024 legislative session:

1. The Work Group on MSRS Correctional Plan Eligibility, required by Laws 2024, Ch. 102, Art. 5, Sec. 14, must recommend legislation to correct deficiencies in the process for adding positions for coverage by the MSRS Correctional Plan. The first meeting of this work group was held on Monday, July 29, and the second meeting was held on Wednesday, August 21. Agendas and materials for these meetings and future work group meetings can be found here, when available. The next meeting of the MSRS Correctional Plan Eligibility work group is Tuesday, September 17, at 10:30 a.m. (Agenda).
    
2. The Work Group on Amortization, required by Laws 2024, Ch. 102, Art. 8, Sec. 13, must recommend legislation to update statutes dictating amortization periods to "conform to actuarial best practices for amortizing liabilities." The first two meetings of this work group were held on July 30 and September 4. Agendas and materials for previous and future work group meetings, when available, can be found here. The next meeting of the Amortization work group is Thursday, October 3, at 10:00 a.m.

Members of the public may attend these meetings, which will be held in-person in the Centennial Office Building and via Teams. Please contact Lisa Diesslin (lisa.diesslin@lcpr.mn.gov) at least 24 hours in advance of a meeting, if you’d like to attend, and note whether you will be attending in-person or via Teams. The work groups do not take testimony and time for public comment will be limited and only if time permits.

 Update on the Secure Choice Retirement Savings Program

Please note that detailed information regarding the Minnesota Secure Choice Retirement Savings Program (the “Program”), including periodic updates, can be found at the Secure Choice webpage accessible under "Quick Links" on this home page.

Program Status: The Program is currently in its planned formation stage with major activities underway, such as board formation and initial meetings; administrative agency establishment; securing office space and other required support services; and the hiring of an Interim Executive Director.

Most Frequently Asked Questions:

Q1. When will the Program be open for enrollment?

A1. The Program is not permitted to open prior to January 1, 2025, under the applicable MN session law, Laws 2023, Chapter 46, Section 10. The session law states:

"Sec. 10. MINNESOTA SECURE CHOICE RETIREMENT PROGRAM; START OF OPERATIONS.

Subdivision 1. Program start; phasing.

(a) The board of directors of the Minnesota Secure Choice retirement program must begin operation of the secure choice retirement program under Minnesota Statutes, section 187.05, no earlier than January 1, 2025.

(b) The board of directors must open the program in phases, and the last phase must be opened no later than two years after the opening of the first phase."

Q2. When will information regarding the enrollment process be available?

A2. Prior to any launch of the Program enrollment process, the Program’s leadership will ensure that adequate time is provided for a statewide educational campaign to inform companies and nonprofits about the Program’s requirements and the process for enrolling employees. More specific information will be posted as the required agency formation activities are completed.

Governor signs 2024 Pension and Retirement Policy and Supplemental Budget Bill

The Governor signed the 2024 Pension and Retirement Policy and Supplemental Budget Bill (HF5040-Her/Frentz, 4th Engrossment) on May 15, 2024, as Laws 2024, Chapter 102. Find the history of action on the bill and summaries of the various versions of the bill on the Annual Pension & Retirement Bill page.

• General summary of the bill as enacted
• Section-by-section summary of the bill as enacted
• List of the source bills in the bill as enacted

See previous LCPR News articles

Minnesota News

 Jill Schurtz, CIO and Executive Director of the MN State Board of Investment, is featured in a two-part interview published in Pensions & Investments on September 4, and September 5, 2024.

In the first installment of Pensions & Investments’ latest Face to Face interview, Schurtz discusses new initiatives, particularly the board’s recent adoption of a climate roadmap aimed at capturing returns from the energy transition, investing in private markets and how she’s structured the team.

In this second installment of a Face to Face interview with Schurtz, executive director and CIO of the $146 billion Minnesota State Board of Investment, she talks about lessons learned, her career, the importance of hiring and developing a team, and the need for diverse perspectives.

 Chris Farrell on the advantages of auto-IRA programs, including Minnesota’s Secure Choice program (Star Tribune)

"Minnesota’s saving program should become available next year for those workers without an employer retirement plan." Read more...

State Board of Investment reports 12.3% investment return for the Combined Funds for fiscal year 2024

"Minnesota State Board of Investment, St. Paul, on Aug. 14 reported $93.7 billion in defined benefit assets as of June 30, the close of SBI’s fiscal year, buoyed by a net investment gain of 12.3%."
"The board’s latest return topped its composite benchmark by almost 50 basis points, according to a performance report on the SBI website." Read more...

Revenue explains new subtraction for public pension income (MN DOR)

The Minnesota Department of Revenue published a document on Public Pension Subtraction, last updated March 21, 2024. Information is available on the pension plans that qualify, income limitations for the subtraction, determining benefits for the subtraction, and determining eligibility for benefits if you are receiving Social Security benefits. Read more...

See previous Minnesota News articles

National News and Recent Publications

NASRA Report: Recent Changes to COLAs

Rising prices have been a concern for many retirees in recent years as inflation reached its highest levels in decades (see CPI-U data below). Cost-of-living adjustments (COLAs) are intended to protect retirement benefits from a loss of purchasing power due to inflation. What changes have states made to COLAs provided by public pension plans during this period of high inflation? See the recent NASRA issue brief on COLAs, published in May 2024, for more information.

Research on Public Pension Retirement Security and Teachers’ Benefits (PEW)

Presentation by The Pew Charitable Trusts on practices of successful pension systems, retirement security metrics, and a comparison of Minnesota TRA pensions to teacher pensions in other states. Read more...

See previous National News articles

Secure Choice News and Publications

State auto-IRA programs gain steam as interstate pact, public support grow. (Pensions & Investments, 5/17/2024)

"More than 3 in 4 Americans (77%) agree that state-facilitated retirement savings programs are a good idea...In addition, the overwhelming majority of Americans (82%) also say they would participate in state-facilitated programs, up from 75% in 2020..." Read more...

Americans’ Views of State-Facilitated Retirement Programs (NIRS, May 2024)

"..states are taking action to address the retirement challenges facing Americans by providing increased access to retirement plans. Since 2012, every state except Alabama has either enacted or introduced legislation that would establish state-facilitated retirement savings programs. These state-facilitated retirement programs offer a backstop for those working in jobs where employers do not offer retirement plans like a pension plan or 401(k) account." Read more...

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