The Minnesota Senate unanimously approved major changes to the state employee pension system Monday, the same day the legislature ratified new contracts with 10 public employee unions. Saint Paul Democrat Sandy Pappas says pension funds have 60 billion dollars in assets but 80 billion in liabilities. She says, “With our population aging and people living longer, we have to provide the funds now instead of kicking the can down the road.”Pension changes include increases in state and employee contributions, lowering and freezing automatic cost-of-living increases, and reducing early retirement benefits.
Fairmont Republican Julie Rosen says it “reflects a shared sacrifice. All stakeholders were engaged.” Rosen says the changes save the state more than six billion dollars over 30 years. Over a half million active and retired public employees are affected.
Pappas says if the state doesn’t act now, Minnesota could slip into problems like New Jersey and Illinois face. “The bill includes everyone and addresses everything. It’s shared responsibility and shared sacrifice,” she says.
More in these excerpts from Monday’s Senate floor debate: