Bill > HF2329

This bill modifies the Teachers Retirement Association (TRA) retirement regulations in two key ways. First, it lowers the age for enhanced early retirement reduction from 62 to 60, allowing teachers to receive a reduced retirement annuity at an earlier age with slightly less financial penalty. Specifically, for members with at least 30 years of service who are at least 60 years old (previously 62), the annuity will be reduced by six percent for each year before normal retirement age. For members under 60 or with fewer than 30 years of service, the early reduction factors are adjusted: four percent for ages 55-58 and seven percent for ages 59 to normal retirement age. Second, the bill clarifies and adjusts the postretirement adjustment (annual increase) for retirees, introducing a graduated increase schedule from 1.1 percent in 2024 to 1.5 percent in 2028 and beyond. For members retiring on or after July 1, 2024, the postretirement adjustment will be applied differently, with the first adjustment occurring in the January following the member reaching normal retirement age. These changes aim to provide more flexible retirement options and consistent cost-of-living adjustments for teachers.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2329&ssn=0&y=2025