2025 Legislative Update

The 2025 legislative session has started. 

The Legislative Commission on Pensions and Retirement (LCPR) is expected to meet soon and will hear testimony on Minnesota State Retirement System (MSRS), Minnesota Public Employees Retirement Association (PERA), and Teachers Retirement Association (TRA) administrative bills.  

PERA’s legislative agenda for 2025 is focused on administrative and technical changes: 

• Membership Eligibility Salary Threshold. Clarifies that defined benefit plan membership is mandatory from the date of hire for employees who are expected to earn more than $425 in a month. This means that all full-time and most part-time employees must be enrolled immediately.
• Election Period for Optional Membership. Clarifies that the 30-day period to elect optional coverage applies to both defined benefit plans and the Defined Contribution Plan (DCP).
• Elected Public Officials. Amends language so that the 30-day period to elect optional coverage begins when an individual takes office, rather than the date they are elected.
• Optional Membership Election Forms. Clarifies that completed DCP election forms must be received by PERA within 60 days of the person taking office or starting employment. This gives employers 30 days to submit the completed membership form after the individual’s 30-day election period.
• No Contribution Rate Requests. PERA is not seeking contribution rate increases for any plan during this session. The July 1, 2025, Correctional Plan increase was passed in the 2024 session. Refer to the article “Correctional Rate Increase” in this newsletter for more information about that change.  

PERA will continue to monitor legislation as it is discussed with the LCPR. The session is expected to end in May. We will provide detailed information about what proposals are passed by the legislature in our next newsletter. 

The LCPR website provides information and tracking of retirement-related bills from the Minnesota House of Representatives and Minnesota Senate. Many proposals are introduced throughout the legislative session; however, not all proposals will become law. You can access LCPR’s bill page at lcpr.mn.gov/billlog.