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Bill Summary 2026 Pension and Retirement Omnibus Bill (Chapter 106; HF 4074, 3rd Engr.) <br />• Section 4 amends section 356.415, subdivision 1c, by reducing the waiting period for a retiree or <br />benefit recipient to receive a full COLA from 24 months to 12 months under the Police & Fire <br />Plan. In addition, the waiting period for a partial COLA is reduced from 13 months to 1 month. <br />Section 1 is effective the day following final enactment. Section 4 is effective for postretirement <br />adjustments beginning on or after January 1, 2027. <br />Articles 2, 3, and 5 amend statutes governing the Local Government Correctional Service Retirement <br />Plan (Correctional Plan) administered by PERA. <br />• Section 2 amends section 353E.03, subdivision 1, which sets out the percentage of salary an <br />employee must contribute to the PERA Correctional Plan. Section 2 decreases the employee <br />contribution rate from 6.83% to 6% of salary. <br />• Section 3 amends section 353E.03, subdivision 2, which sets out the percentage of an employee's <br />salary that the employer must contribute to the PERA Correctional Plan. Section 3 decreases the <br />employer contribution rate from 10.25% to 9% of salary. <br />• Section 5 amends section 356.415, subdivision 1g, which provides the COLA for the PERA <br />Correctional Plan. Section 5 increases the maximum COLA for the PERA Correctional Plan. Under <br />current law, the COLA for the PERA Correctional Plan is 1% effective each January 1, unless the <br />Social Security COLA is greater than 1%, in which case the COLA is 100% of the Social Security <br />COLA, not to exceed 2.5%. Under the bill, the COLA maximum is increased from 2.5% to 3%. The <br />remaining changes in Section 5 are technical changes. <br />Sections 2 and 3 are effective January 1, 2027. Section 5 is effective for postretirement adjustments <br />beginning on or after January 1, 2027. <br />Article 3: Teachers Retirement Association (TRA); St. Paul Teachers <br />Retirement Fund Association (St. Paul Teachers) <br />Source: SF 4330 (Rasmusson)/HF 4167 (Nadeau) <br />SF 4765 (Rosmusson)/HF 4429 (Nadeau) <br />LCPR Amendment S4276-2A <br />LCPR Amendment S4276-16A <br />Sections 1, 4, and 5 amend statutes governing the age at which a teacher covered by TRA can enter into <br />a return -to -work agreement before the effective date of retirement and still commence receipt of a <br />retirement annuity from TRA. The age is reduced from 62 to 59%. <br />• Section 1 amends section 354.05, subdivision 37, which defines "termination of teaching <br />service." Termination has not occurred if the teacher entered into a return to work agreement <br />before age 62. The age is changed from 62 to 59%. <br />• Section 4 amends section 354.444, subdivision 2, which authorizes teachers to retire, begin <br />receipt of a retirement annuity, and return to work. Under this section, a teacher is authorized to <br />enter into a written agreement with the employing unit to return to work before retirement, but <br />only if the teacher is at least age 62. Subdivision 2 is revised to change the age from 62 to 59%. <br />Legislative Commission on Pensions and Retirement Page 4 <br />