Subd. 37.

Pension adjustment revenue.

(a) A school district's pension adjustment
revenue equals the sum of:

(1) the greater of zero or the product of:

(i) the difference between the district's adjustment under Minnesota Statutes 2012, section
127A.50, subdivision 1, for fiscal year 2014 per adjusted pupil unit and the state average
adjustment under Minnesota Statutes 2012, section 127A.50, subdivision 1, for fiscal year
2014 per adjusted pupil unit; and

(ii) the district's adjusted pupil units for the fiscal year; and

(2) the product of the salaries paid to district employees who were members of the
Teachers Retirement Association and the St. Paul Teachers' Retirement Fund Association
for the prior fiscal year and the district's pension adjustment rate for the fiscal year. The
pension adjustment rate for Independent School District No. 625, St. Paul, equals deleted text begin 0.84
percent for fiscal year 2019, 1.67 percent for fiscal year 2020, 1.88 percent for fiscal year
2021, 2.09 percent for fiscal year 2022,deleted text end 2.3 percent for fiscal year 2023, and 2.5 percent for
fiscal year 2024 and later. The pension adjustment rate for all other districts equals deleted text begin 0.21
percent for fiscal year 2019, 0.42 percent for fiscal year 2020, 0.63 percent for fiscal year
2021, 0.84 percent for fiscal year 2022,deleted text end 1.05 percent for fiscal year 2023, and deleted text begin 1.25deleted text end new text begin 2.25
new text end percent for fiscal year 2024 and later.

(b) For fiscal year 2025 and later, the state total pension adjustment revenue under
paragraph (a), clause (2), must not exceed the amount calculated under paragraph (a), clause
(2), for fiscal year 2024. The commissioner must prorate the pension adjustment revenue
under paragraph (a), clause (2), so as not to exceed the maximum.

(c) Notwithstanding section 123A.26, subdivision 1, a cooperative unit, as defined in
section 123A.24, subdivision 2, qualifies for pension adjustment revenue under paragraph
(a), clause (2), as if it was a district, and the aid generated by the cooperative unit shall be
paid to the cooperative unit.

Subd. 38.

Normal retirement age.

"Normal retirement age" means age 65 for a person
who first became a member of the association or a member of a pension fund listed in section
356.30, subdivision 3, before July 1, 1989. For a person who first becomes a member of
the association after June 30, 1989, normal retirement age means deleted text begin the higher of age 65 or
"retirement age," as defined in United States Code, title 42, section 416(l), as amended, but
not to exceeddeleted text end age deleted text begin 66deleted text end new text begin 64new text end .

Subd. 2.

Employee contribution.

(a) The employee contribution to the fund is the
following percentage of the member's salary:

	Period	Basic Program	Coordinated Program
	from July 1, 2014, through June 30, 2023	11 percent	7.5 percent
	after June 30, 2023	deleted text begin 11.25deleted text end new text begin 11.75 new text end percent	deleted text begin 7.75deleted text end new text begin 8.25 new text end percent

(b) When an employee contribution rate changes for a fiscal year, the new contribution
rate is effective for the entire salary paid for each employer unit with the first payroll cycle
reported.

(c) This contribution must be made by deduction from salary. Where any portion of a
member's salary is paid from other than public funds, the member's employee contribution
must be based on the entire salary received.

Subd. 3.

Employer.

(a) The regular employer contribution to the fund by Special School
District No. 1, Minneapolis, is an amount equal to the applicable following percentage of
salary of each coordinated member and the applicable percentage of salary of each basic
member specified in paragraph (c).

The additional employer contribution to the fund by Special School District No. 1,
Minneapolis, is an amount equal to 3.64 percent of the salary of each teacher who is a
coordinated member or who is a basic member.

(b) The regular employer contribution to the fund by Independent School District No.
709, Duluth, is an amount equal to the applicable percentage of salary of each old law or
new law coordinated member specified for the coordinated program in paragraph (c).

(c) The employer contribution to the fund for every other employer is an amount equal
to the applicable following percentage of the salary of each coordinated member and the
applicable following percentage of the salary of each basic member:

	Period	Coordinated Member			Basic Member
	deleted text begin from July 1, 2014, through June 30, 2018 deleted text end		deleted text begin 7.5 percent deleted text end		deleted text begin 11.5 percent deleted text end
	deleted text begin from July 1, 2018, through June 30, 2019 deleted text end		deleted text begin 7.71 percent deleted text end		deleted text begin 11.71 percent deleted text end
	deleted text begin from July 1, 2019, through June 30, 2020 deleted text end		deleted text begin 7.92 percent deleted text end		deleted text begin 11.92 percent deleted text end
	deleted text begin from July 1, 2020, through June 30, 2021 deleted text end		deleted text begin 8.13 percent deleted text end		deleted text begin 12.13 percent deleted text end
	deleted text begin from July 1, 2021, through June 30, 2022 deleted text end		deleted text begin 8.34 percent deleted text end		deleted text begin 12.34 percent deleted text end
	from July 1, 2022, through June 30, 2023		8.55 percent		12.55 percent
	after June 30, 2023		deleted text begin 8.75d