This bill aims to enhance retirement benefits for members of the Teachers Retirement Association in Minnesota by introducing several key provisions. It allows for an unreduced retirement annuity for members who reach age 60 with 30 years of service, modifies early retirement reduction factors, and increases postretirement adjustments. Notably, the bill removes the delay in postretirement adjustments for members retiring before the normal retirement age and increases employer contributions to the retirement fund. Amendments to Minnesota Statutes include changes to pension adjustment revenue calculations, employer contribution rates, and the computation of retirement annuities, with new effective dates for various provisions set for January 1, 2026, and July 1, 2025.

Additionally, the bill appropriates funds from the general fund to support increased employer pension contributions for the Teachers Retirement Association and various educational institutions, including the Minnesota State Academies and the Perpich Center for the Arts, for fiscal years 2026 and 2027. Starting in fiscal year 2028, base funding for these contributions is set to increase annually by three percent of the prior fiscal year's base. The bill also specifies appropriations for general education aid through the Department of Education for fiscal years 2026 and 2027, intended to supplement existing funding for educational purposes as established by other laws.

Statutes affected:
Introduction: 126C.10, 127A.50, 354.42, 354.44, 356.415