Legislative Update

The following information was shared with the library community via the MLA and ITEM Legislative Update Newsletter Monday, June 11, 2018 by Sam Walseth, Capitol Hill Associates, in his role as the MLA-ITEM lobbyist.

Pension Bill & PERA
There was interest at the Legislative First Wednesday Update meeting in the newly enacted Pension bill that affects PERA. Here is some information:

PERA Reforms
 
Many librarians work for local units of government and are a part of the Public Employee Retirement Association (PERA). As employers and employees you may have questions about the newly enacted Pension reform bill. 
 
The newly enacted pension bill does not include any increases in the rate of employer and employee contributions to the PERA General Plan, which is most likely the plan that would cover public library employees. There will be changes to the benefits, including the COLA for retirees, under the PERA General Plan. 
 
These changes are expected to improve the funded status of the PERA General Plan, which in turn will improve the financial picture regarding plan assets and liabilities as passed through and presented in employers’ (including municipalities’) financial statements (per GASB). That’s good news for financial reporting purposes and may help with debt ratings.
 
For further review of the Pension changes just enacted into law, take a look at the Legislative Commission on Pensions & Retirement summary:
 
https://www.commissions.leg.state.mn.us/lcpr/documents/omnibus/2018/Summary_of_S2620_1st_Engr.pdf