If you want cola in Minnesota, you won’t get any (it’s called “pop” there) — but that’s not the case for state retirees. Gov. Mark Dayton (D) on May 31 vetoed an omnibus retirement bill that would have cut the cost-of-living adjustments for Minnesota State Retirement System retirees and Minnesota Teachers Retirement Association retirees.
The state Senate had passed its version May 19, and the state House of Representatives followed suit three days later. The legislation would have cut the COLAs for retired state teachers and State Retirement System retirees to 1% and 1.75%, respectively.
“These measures were part of sustainability plans that called for shared commitments among employers, current employees and retirees in order to secure the financial health and stability of the MSRS and TRA pension plans. Each party shared in the effort, which has been, and remains an important principle in maintaining the soundness of Minnesota's pension plans,” wrote Dayton in his letter announcing the veto.
Dayton added that the legislation “contains only one piece of the overall sustainability plans, placing sole responsibility for reducing plan liabilities on current retirees.” This, he said, “is not fair, and I cannot agree to it.”
The governor did offer a suggestion regarding how a similar measure may succeed, writing, “Legislation in the 2017 Session, which will be necessary to address the current pension plan funding projections, must contain a shared participation and be funded in order to gain my signature.”
The state Senate had passed its version May 19, and the state House of Representatives followed suit three days later. The legislation would have cut the COLAs for retired state teachers and State Retirement System retirees to 1% and 1.75%, respectively.
“These measures were part of sustainability plans that called for shared commitments among employers, current employees and retirees in order to secure the financial health and stability of the MSRS and TRA pension plans. Each party shared in the effort, which has been, and remains an important principle in maintaining the soundness of Minnesota's pension plans,” wrote Dayton in his letter announcing the veto.
Dayton added that the legislation “contains only one piece of the overall sustainability plans, placing sole responsibility for reducing plan liabilities on current retirees.” This, he said, “is not fair, and I cannot agree to it.”
The governor did offer a suggestion regarding how a similar measure may succeed, writing, “Legislation in the 2017 Session, which will be necessary to address the current pension plan funding projections, must contain a shared participation and be funded in order to gain my signature.”
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