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 introduces a new effective date of July 1, 2026, for the changes made to the pension adjustment revenue and the retirement annuity calculations. It also specifies that the pension adjustment rate for Independent School District No. 625 in St. Paul will be set at 2.3 percent for fiscal year 2023, increasing to 3.25 percent for fiscal year 2026 and beyond.

Additionally, the bill includes appropriations for increased employer contributions to the TRA, with specific funding increases for various educational institutions starting in fiscal year 2028. These increases will be subject to an annual growth of three percent in subsequent years. The bill aims to ensure the financial stability of the TRA by enhancing employer contributions and adjusting retirement benefits, thereby supporting educators' retirement security.

Statutes affected:
Introduction: 127A.50