This bill introduces significant reforms to the Teachers Retirement Association in Minnesota, focusing on enhancing retirement benefits for educators. Key changes include allowing members to receive an unreduced retirement annuity upon reaching age 60 with 30 years of service, adjusting early retirement reduction factors, and increasing postretirement adjustments. The bill also eliminates the delay in postretirement adjustments for those retiring before the normal retirement age, increases employer contributions, and raises pension adjustment revenue for school districts. Specific amendments to Minnesota Statutes 2024 are included, particularly regarding pension adjustment revenue calculations and employer contribution rates.

Additionally, the bill appropriates funds from the general fund to support increased employer pension contributions for the Teachers Retirement Association, specifically for the Minnesota State Academies, the Perpich Center for the Arts, and the Minnesota State Colleges and Universities for fiscal years 2026 and 2027. Starting in fiscal year 2028, base funding for these contributions is set to increase annually by three percent. The bill also allocates additional sums for general education aid through the Department of Education, ensuring a structured approach to funding for both education and pension contributions, with detailed appropriations outlined for the upcoming fiscal years.

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