MAY 23 – The Minnesota House of Representatives on Sunday passed the 2016 Omnibus Pension Bill (SF588) on a vote of 129-3. The Senate version of the 2016 Omnibus Pension Bill passed out of that chamber Thursday on a 61-1 vote, with Sen. Eric Pratt the lone no vote. The bill now goes to Gov. Mark Dayton.
Legislative Commission on Pensions and Retirement (LCPR) chair Tim O’Driscoll (R-Sartell) summarized the provisions of the bill, whose major changes call for the investment return assumption for Teachers Retirement Association (TRA) to be lowered to 8 percent, and for the cost-of-living adjustment for retirees of TRA to be lowered to 1 percent for one year and for the Minnesota State Retirement System (MSRS) to be lowered to 1.75 percent for one year beginning Jan. 1, 2017. (More HERE.)
Our popular summer group seminars have been scheduled and are now available for member registration. (See schedule here.)
These sessions are geared towards members within 5-10 years of retirement (age 50+). You will receive personalized benefit estimates during the session. All sessions begin at 9:00 am and typically last two to three hours.
A post-retirement increase of 2 percent will go into effect on Jan. 1, 2016.
Members who started receiving a benefit on or before July 1, 2014, will receive a 2 percent increase.
Members who started receiving a benefit between July 2, 2014, and June 1, 2015, will get a prorated increase.
If you are eligible for a post-retirement increase on January 1, you will soon receive a letter detailing the increase to your monthly benefit, along with current tax information.
State and federal tax tables are available on our website under Forms and Publications.
Your 2015 annual statement is now available online. To view your statement, log into your MyTRA account.
Your statement contains important informaton about your TRA benefits, such as your years of service credit, your total contributions, and your vesting status.
The 2015 annual report for TRA is now available. This year, TRA also produced the Annual Report Highlights, which provides an overview of our financial condition.
Legislation passed in May 2015 resulted in a change to when a medical, family or parental leave payment is due. The deadline to make the payment without interest is Dec. 31 of the year following the fiscal year of the leave, rather than by June 30 of the year of the leave.
If the payment is not made by Dec. 31, 8.5 percent interest will be charged through the end of the month in which payment is made. Any leave payment made after June 30 of the year following the fiscal year of the leave would be based on full actuarial cost.
The change was necessary because one of the determining factors in the cost of the leave is the salary earned. The final salary information for the leave period could not be determined by the June 30 deadline. The Dec. 31 deadline will allow time for all salary to be reported, issues resolved, and leave costs calculated and sent to members on leave. It will also allow time for the members on leave to make arrangements for a rollover or other payment option.
Note that an extended leave still has a deadline of June 30 of each fiscal year of the leave.
Gov. Mark Dayton on May 22 signed the 2015 Omnibus Retirement Bill into law. The bill passed in the state House of Representatives unanimously and in the Senate on a 53-4 vote on May 17 following days of wrangling over state funding for the merger of the Minneapolis Employees Retirement Fund (MERF) into the Public Employees Retirement Association (PERA).Here are the law's major provisions...
APRIL 9, 2015 – Mary Broderick was re-elected as active-member representative and Marshall Thompson was elected as a new active-member representative to the eight-member TRA Board of Trustees. Their four-year terms begin July 1, 2015. More here...
JULY 30 — Benefits paid by state and local pension plans support a significant amount of economic activity in Minnesota, according to the new study, "Pensionomics 2014" from the National Institute on Retirement Security. Pension benefits received by retirees are spent in the local community. This spending ripples through the economy, as one person’s spending becomes another person’s income. In 2012, expenditures stemming from state and local pensions supported 46,581 Minnesota jobs that paid $2.2 billion in wages and salaries, resulting in $7.0 billion in total economic output and generating $1.2 billion in federal, state, and local tax revenues in our state.
Detroit’s bankruptcy and Chicago’s pension problems have prompted a wave of speculation about city finances. What are the facts? The underlying problems in financially troubled cities have been decades in the making: population loss, declining tax bases, and other patterns of fiscal mismanagement.
Research from the Center for State & Local Government Excellence finds that:
Read the report HERE.
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