Minnesota Gov. Mark Dayton has signed a pension reform into law to ensure the retirement benefits of the state’s public employees.
The bipartisan bill will eliminate $3.4 billion in unfunded liabilities. To stabilize the plans, the state will contribute $27 million next year, then another $114 million in 2020 and 2021. In return, current employees will be required to contribute more, and current retirees will see changes in their cost-of-living adjustments.
“Hard working Minnesotans who have dedicated their lives and careers to serving our state deserve the security of retirement benefits they have rightly earned,” said Dayton. “This bipartisan legislation stabilizes pension benefits for 511,000 workers, retirees, and their families.”
Both the Senate and the House passed the bill unanimously, reports KSTP.com. The news source also said it is the last bill Dayton will sign into law as governor as he is not seeking re-election for a third term.
Although a good start, Minnesota’s pension plans—at 53% funded—are not out of the water. In addition to the $3.4 billion bill savings, the state still has $12.8 billion in pension debt.