Subd. 2.

Employee contribution.

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

	Period	new text begin Years of allowable service new text end	Basic Program	Coordinated Program
	from July 1, 2014, through June 30, 2023	new text begin all new text end	11 percent	7.5 percent
	from July 1, 2023, through June 30, deleted text begin 2025deleted text end new text begin 2024 new text end	new text begin all new text end	11.25 percent	7.75 percent
	after June 30, deleted text begin 2025deleted text end new text begin 2024 new text end	new text begin fewer than 10 new text end	11.5 percent	8.0 percent
	new text begin after June 30, 2024 new text end	new text begin 10 or more and fewer than 20 new text end	new text begin 12 percent new text end	new text begin 8.5 percent new text end
	new text begin after June 30, 2024 new text end	new text begin 20 or more and fewer than 30 new text end	new text begin 12.25 percent new text end	new text begin 8.75 percent new text end
	new text begin after June 30, 2024 new text end	new text begin 30 or more new text end	new text begin 12.5 percent new text end	new text begin 9.0 percent new text end

(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. 6.

Computation of formula program retirement annuity.

(a) The formula
retirement annuity must be computed in accordance with the applicable provisions of the
formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
section 354.05, subdivision 13a, for the period of the member's formula service credit.

(b) This paragraph, in conjunction with paragraph (c), applies to 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, unless paragraph (d), in conjunction with paragraph (e),
produces a higher annuity amount, in which case paragraph (d) applies. The average salary
as defined in section 354.05, subdivision 13a, multiplied by the following percentages per
year of formula service credit shall determine the amount of the annuity to which the member
qualifying therefor is entitled for service rendered before July 1, 2006:

	Period		Coordinated Member		Basic Member
	Each year of service during first ten		1.2 percent per year		2.2 percent per year
	Each year of service thereafter		1.7 percent per year		2.7 percent per year

For service rendered on or after July 1, 2006, by a member other than a member who
was a member of the former Duluth Teachers Retirement Fund Association between January
1, 2006, and June 30, 2015, and for service rendered on or after July 1, 2013, by a member
who was a member of the former Duluth Teachers Retirement Fund Association between
January 1, 2013, and June 30, 2015, the average salary as defined in section 354.05,
subdivision 13a, multiplied by the following percentages per year of service credit, determines
the amount the annuity to which the member qualifying therefor is entitled:

	Period		Coordinated Member		Basic Member
	Each year of service during first ten		1.4 percent per year		2.2 percent per year
	Each year of service after ten years of service		1.9 percent per year		2.7 percent per year

(c)(1) This paragraph applies only to 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, and whose annuity is higher when calculated under paragraph (b), in conjunction
with this paragraph than when calculated under paragraph (d), in conjunction with paragraph
(e).

(2) Where any member retires prior to normal retirement age under a formula annuity,
the member shall be paid a retirement annuity in an amount equal to the normal annuity
provided in paragraph (b) reduced by one-quarter of one percent for each month that the
member is under normal retirement age at the time of retirement except that for any member
who has 30 or more years of allowable service credit, the reduction shall be applied only
for each month that the member is under age 62.

(3) Any member whose attained age plus credited allowable service totals 90 years is
entitled, upon application, to a retirement annuity in an amount equal to the normal annuity
provided in paragraph (b), without any reduction by reason of early retirement.

(d) This paragraph applies to a member who has become at least 55 years old and first
became a member of the association after June 30, 1989, and to any other member who has
become at least 55 years old and whose annuity amount when calculated under this paragraph
and in conjunction with paragraph (e), is higher than it is when calculated under paragraph
(b), in conjunction with paragraph (c).

(1) For a basic member, the average salary, as defined in section 354.05, subdivision
13a, multiplied by 2.7 percent for each year of service for a basic member determines the