The bill modifies provisions of the Teachers Retirement Act by amending Minnesota Statutes 2023 Supplement, section 354.42, subdivision 2, which outlines the employee contribution to the retirement fund. It specifies that the employee contribution is a percentage of the member's salary and clarifies that any changes to the contribution rate for a fiscal year will take effect for the entire salary paid during the first payroll cycle reported. Additionally, it mandates that contributions be deducted from salary, including any portion paid from non-public funds.

Furthermore, the bill includes a provision for a one-time direct state aid transfer of $15,729,000 from the general fund to the Teachers Retirement Association for fiscal year 2025. Both sections of the bill are set to take effect on June 30, 2024.