Local government correctional service retirement plan; employee and employer contribution rates reduced, and postretirement adjustments increased.

This bill modifies Minnesota's local government correctional service retirement plan by lowering contribution rates for both employees and employers while increasing the minimum postretirement cost-of-living adjustment. Starting January 1, 2027, employees will contribute six percent of their salary instead of the previous 6.83 percent, and employers will contribute nine percent instead of 10.25 percent. The plan's annual benefit increases for retirees will be raised from a minimum of 1.5 percent to 2 percent, with a maximum increase of 3 percent instead of the previous 2.5 percent, unless the plan's assets fall below certain thresholds. These changes directly affect correctional officers and other employees covered by the Public Employees Retirement Association's local government correctional retirement plan in Minnesota.