Bill > HF2318

This bill modifies several aspects of the Teachers Retirement Association (TRA) and related education funding in Minnesota. It increases the pension adjustment revenue for school districts, raising the rate from 1.25% to 3.0% for fiscal year 2026 and later, which will provide additional financial support to school districts for pension-related expenses. The bill also increases employer contribution rates for the TRA, with coordinated members' rates rising to 10.5% and basic members' rates increasing to 13.5%, effective July 1, 2025. A significant change is the provision of an unreduced retirement annuity for teachers who reach age 62 with 30 years of service, allowing them to retire without early withdrawal penalties. The bill includes appropriations from the general fund to various educational entities (including the Department of Education, Minnesota State Academies, Perpich Center for Arts Education, and Minnesota State Colleges and Universities) to support these increased pension contributions, with a provision for the base appropriations to increase by 3% annually starting in fiscal year 2028. These changes aim to improve retirement benefits and financial stability for teachers in Minnesota's educational system.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2318&ssn=0&y=2025