The proposed bill seeks to improve retirement benefits for teachers in Minnesota by allowing for unreduced retirement at age 62 or after 35 years of service. It aims to restore deferred annuities augmentation, provide additional service credit for school employees, and align post-retirement adjustments with inflation. Key amendments to Minnesota Statutes include changing the definition of "normal retirement age" from 65 to 62 and allowing members with at least 35 years of service to receive an unreduced retirement annuity. The bill also modifies the calculation of retirement annuities and introduces new criteria for post-retirement adjustments based on inflation, ensuring that retired teachers who return to work have their annuity payments adjusted accordingly.

Additionally, the bill addresses the impact of the COVID-19 pandemic by granting two months of allowable service credit for every month of service during the years 2020 to 2022. It establishes new augmentation rates for deferred annuities, reinstating a two percent increase starting July 1, 2023, and modifies employer contributions to the retirement fund with specified new rates for various school districts. The effective date for these changes is also set for July 1, 2023. Overall, the legislation aims to enhance the financial stability of the retirement system while providing more substantial benefits to educators in Minnesota.

Statutes affected:
Introduction: 354.35, 354.05, 354.44, 354A.011, 354A.29, 354A.31, 354A.36, 356.415, 354.55, 354A.37, 126C.10, 127A.50, 354.42, 354A.12