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Legislative Commission on Pensions and Retirement
2020 Study of Postretirement Adjustments (COLAs)

2020 Study of Postretirement Adjustments (COLAs)

The 2018 Minnesota Legislature passed a comprehensive package of public pension reforms. The reforms included reductions in the postretirement adjustment rate for many Minnesota public pension plans and established a new method for determining the postretirement adjustment rate for the General and Local Government Correctional Plans of the Public Employees Retirement Association ("PERA"). In addition to the reforms, the legislature mandated that the Legislative Commission on Pensions and Retirement (the "Commission" or "LCPR") conduct a study of postretirement adjustments for the statewide public pension plans and the St. Paul Teachers Retirement Fund Association. (Laws 2018, Ch. 211, Art. 5, Sec. 14)

Specifically, the legislature mandated that the study:

  1. take into account the purpose of postretirement adjustments and whether governing statutes are consistent with the purpose of postretirement adjustments;
  2. consider alternative methodologies for determining postretirement adjustments; and
  3. evaluate PERA’s new method for determining the postretirement adjustment rate.

The work group met four times between July 26 and November 6. Below are links to the agendas and meeting materials.