The proposed bill aims to enhance the retirement benefits for teachers in Minnesota by amending several sections of the Minnesota Statutes. Key provisions include an increase in pension adjustment revenue for school districts, an increase in employer contributions to the Teachers Retirement Association, and the establishment of 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 rise to 3.25% for fiscal year 2026 and later, while the rate for other districts will increase 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.

Furthermore, the bill includes appropriations from the general fund to various educational institutions, including the Department of Education and the Minnesota State Colleges and Universities, to support the increased employer pension contributions. These appropriations are set to increase annually by 3% starting in fiscal year 2028. The bill also outlines specific adjustments to the retirement annuity calculations, ensuring that members who retire early but meet the age and service requirements will not face reductions in their annuity. Overall, the bill seeks to provide more robust retirement benefits for educators, thereby enhancing the financial security of teachers in Minnesota.

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