Bill > SF3239

This bill makes several key changes to the Teachers Retirement Association (TRA) and related pension provisions. The bill increases the pension adjustment revenue rates for school districts, raising the rate from 1.05% to 1.25% for fiscal year 2025 and from 2.0% to 3.0% for fiscal year 2026 and later. It also modifies employer contribution rates, increasing them to a flat 10.5% for coordinated members and 13.5% for basic members, effective July 1, 2025. A significant change allows teachers to receive an unreduced retirement annuity upon reaching age 62 with 30 years of service, eliminating previous early retirement reduction penalties for those meeting these criteria. The bill includes appropriations to various educational entities (such as the Department of Education, Minnesota State Academies, Perpich Center for Arts Education, and Minnesota State Colleges and Universities) to cover increased employer pension contributions, with a provision for these appropriations to increase by 3% annually starting in fiscal year 2028. These changes aim to provide more favorable retirement options and financial support for teachers and educational institutions, with most provisions becoming effective in fiscal year 2025 or 2026.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3239&ssn=0&y=2025