This bill amends various sections of Minnesota Statutes concerning the Teachers Retirement Association, with a focus on enhancing retirement benefits and adjusting employer contributions. Key provisions allow members to receive an unreduced retirement annuity upon reaching age 60 with 30 years of service, modify early retirement reduction factors, and increase postretirement adjustments. The bill also eliminates the delay in postretirement adjustments for members retiring before the normal retirement age. Additionally, it establishes new employer contribution rates and introduces annual postretirement adjustments starting January 1, 2026, while ensuring that these changes are effective for fiscal years 2026 and later.

Furthermore, the bill appropriates funds from the general fund to support increased employer pension contributions for the Teachers Retirement Association, specifically for institutions such as the Minnesota State Academies and the Minnesota State Colleges and Universities for fiscal years 2026 and 2027. Starting in fiscal year 2028, the base funding for these contributions will increase annually by three percent of the prior fiscal year's base. The bill also includes provisions for the Department of Education, detailing appropriations for general education aid for the specified fiscal years, with specific amounts allocated for each year.

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