This bill modifies the early retirement reduction factors for members of the Teachers Retirement Association (TRA) and increases employer contributions to the TRA. It amends Minnesota Statutes 2025 Supplement, specifically sections 126C.10 and 354.44, to adjust the pension adjustment revenue and the computation of retirement annuities. Notably, the bill changes the early retirement reduction factors, particularly for members retiring before normal retirement age, by adjusting the age brackets and corresponding reduction percentages. For instance, the age range for a specific reduction factor has been changed from 58 to 57, and the reduction factor for ages 58 through 62 has been specified as three percent.

Additionally, the bill includes provisions for increased appropriations to support the increased employer contributions to the TRA, with specific funding increases outlined for various educational institutions starting in fiscal year 2028, followed by annual increases of three percent thereafter. The effective date for these changes is set for July 1, 2026. Overall, the bill aims to enhance the financial stability of the TRA while providing clearer guidelines for early retirement benefits.

Statutes affected:
Introduction: 127A.50