This bill proposes significant enhancements to the Teachers Retirement Association in Minnesota, focusing on improving retirement benefits for teachers. 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 and raises employer contributions to the retirement fund. Specific amendments to Minnesota Statutes address pension adjustment revenue calculations, employer contribution percentages, and the computation of retirement annuities.

Additionally, the bill appropriates funds from the general fund to support increased employer pension contributions for various educational institutions, including the Minnesota State Academies 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, detailing specific appropriations for fiscal years 2026 and 2027. Overall, the legislation aims to enhance the financial security of teachers in retirement while ensuring sustainable funding for the Teachers Retirement Association.

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