Bill > SF2523

This bill modifies provisions related to the Teachers Retirement Association (TRA) and makes several key changes to pension and education funding. The bill adjusts the pension adjustment revenue calculation for school districts, increasing the pension adjustment rate for most districts from 1.05% to 5.8% for fiscal year 2026 and later. It also changes employer contribution rates for the TRA, increasing them to 13.3% for coordinated members and 17.3% for basic members effective July 1, 2025. The bill modifies the retirement annuity calculation formula, lowering the early retirement age from 62 to 60 for members with 30 or more years of service and adjusting the early retirement reduction factors. Additionally, it updates the annual postretirement adjustment for TRA beneficiaries, setting a flat 1.5% increase beginning January 1, 2026, for those who have been receiving benefits for at least 12 months. The bill also includes appropriations from the general fund to various educational institutions to support increased employer pension contributions, with a provision for a 3% annual base increase starting in fiscal year 2028. These changes aim to provide more stable and predictable pension funding for teachers and educational employees in Minnesota.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2523&ssn=0&y=2025