SAINT PAUL, Minn. – Today, the Minnesota House of Representatives passed House File 3100, the 2023 Pensions and Retirement Budget Bill, on a vote of 120-0. The bill, authored by Rep. Kaohly Vang Her (DFL – Saint Paul), delivers the largest single investment in our statewide pension plans in state history, allocating $496 million to alleviate inflationary pressures on our retirees and active members while increasing overall plan health.
“Minnesota pensioners deserve pension plans that they can rely on,” said Rep. Her, Chair of the Legislative Commission on Pensions and Retirement. “By investing in our retirees, we are ensuring a more vibrant Minnesota for everyone. This bill utilizes the funds to provide additional benefits to active state workers, and retirees, and improve overall plan health and stability.”
The Pensions and Retirement budget contains an $88 million investment in cost-of-living adjustments directly to retirees in the state pension system in both the coordinated and basic plans to provide relief for our retired state workers. The bill also aligns the assumed rate of return with the majority of other states and actuarial recommendations, resulting in more accurate projections.
“The DFL-led Minnesota House has passed the largest single investment in our statewide pension plans in state history,” said Speaker Melissa Hortman. “It was very important to the Minnesota House DFL and to me personally that we make a large investment in our public pensions. I’m grateful to the Governor and the Senate for agreeing to such a significant investment. Chair Her was an excellent chair, leading to a unanimous vote for the pension bill. Hardworking public employees in Minnesota deserve economic security and the ability to retire with dignity through a secure pension.”
The investments in the bill aid our ten statewide pensions plans; the five Minnesota State Retirement System (MSRS) plans, three Public Employee Retirement Association (PERA) plans, the Teachers Retirement Association (TRA), and St. Paul Teachers Retirement Fund Association (SPTRFA).
The Senate’s companion bill is moving through its committees. Video of the floor session will be available on House Public Information Services’ YouTube Channel.