This bill aims to enhance the retirement benefits for teachers in Minnesota by amending several sections of the Minnesota Statutes. Key provisions include increasing the pension adjustment revenue for school districts, raising employer contributions to the Teachers Retirement Association, and allowing for an unreduced retirement annuity for members who reach age 62 with at least 30 years of service. Specifically, the pension adjustment rate for Independent School District No. 625 in St. Paul will increase to 3.25% for fiscal year 2026 and later, while the rate for other districts will rise from 1.05% to 3.0%. Additionally, the bill introduces new effective dates for these changes, with certain provisions taking effect in fiscal years 2026 and later.

The bill also includes appropriations from the general fund to various educational institutions for increased employer pension contributions to the Teachers Retirement Association, with a commitment to increase the base amount annually by 3% starting in fiscal year 2028. The appropriations cover the Department of Education, Minnesota State Academies, Perpich Center for Arts Education, and Minnesota State Colleges and Universities for fiscal years 2026 and 2027. Overall, the bill seeks to provide better financial support for teachers' retirement, ensuring a more sustainable pension system.

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