The Minnesota Senate today passed a landmark reform package to close the state’s unfunded public pension liability gap, which is one of the largest in the nation. Senate File 2620, authored by Pension Commission Chair Sen. Julie Rosen (R-Vernon Center), closes unfunded pension commitments by implementing a series of benefit reforms, increasing employer and employee contributions, adjusting retiree cost of living adjustments, and with some state funding. The overhaul will save Minnesota $6.1 billion over a 30-year period, $3.4 billion of which is immediate savings.

“This is the largest pension reform bill in Minnesota’s history, and the only way we were able to get it done was through shared sacrifice and compromise between each of the stakeholders – the governor, the legislature, and the four major pension plans,” said Senator Rosen. “I am proud we were able to maintain our commitment to our valuable state employees, guarantee the solvency of each pension fund, and implement important reforms that will result in significant savings. It took years of work and negotiations, but everyone can be happy with the final product.”