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 support increased employer pension contributions to the Teachers Retirement Association, with specified amounts for fiscal years 2026 and 2027, and a commitment for annual increases of 3% starting in fiscal year 2028. Furthermore, it outlines the adjustments to the retirement annuity calculations, ensuring that members who retire at age 62 with the requisite service will not face reductions in their annuity. Overall, the legislation seeks to provide better financial security for educators in their retirement years.

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