HF3052 (Legislative Session 94 (2025-2026))
Teachers Retirement Association; unreduced retirement annuity provided upon reaching age 60 with 30 years of service, early retirement reduction factors modified for annuity commencement before normal retirement age, postretirement adjustments increased, other various retirement provision modified, and money appropriated.
AI Generated Summary
Purpose of the Bill
This bill aims to enhance retirement benefits for teachers in Minnesota. It intends to provide an unreduced retirement annuity for teachers who reach 60 years of age and have completed 30 years of service. The bill also adjusts financial contributions from both employers and the state to support these changes.
Main Provisions
Retirement Benefits: Teachers who are members of the Teachers Retirement Association will be eligible for an unreduced retirement annuity once they reach the age of 60 and have completed 30 years of service.
Early Retirement: The bill modifies the reduction factors applicable if a teacher chooses to commence their annuity before the normal retirement age, making early retirement slightly less financially punitive.
Postretirement Adjustments: It increases postretirement adjustments for members and removes any delays in these adjustments for those retiring before the normal retirement age.
Employer Contributions: There will be an increase in employer contributions to the Teachers Retirement Association to fund these enhanced benefits.
Pension Adjustment Revenue for School Districts: The bill increases pension adjustment revenue for school districts and specifies new rates for different fiscal years. For example, the pension adjustment rate for the St. Paul school district will rise to 3.25 percent in fiscal year 2026, while for other districts, it will increase to 5.8 percent from fiscal year 2026 onward.
State Contributions: Additional state funding is appropriated to support these changes in the retirement system.
Significant Changes to Existing Law
The adjustments to retirement benefits and pension revenues represent a shift in financial terms, increasing both funding and benefits for retired teachers.
Specific changes in the contributed rates for both districts and the state reflect a more significant state financial commitment to teacher pensions.
Relevant Terms
retirement annuity, early retirement reduction, postretirement adjustment, employer contributions, pension adjustment revenue, Teachers Retirement Association, school districts.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| April 02, 2025 | House | Floor | Action | Introduction and first reading, referred to | State Government Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"Clarifies the fiscal year structures and establishes new percentages for pension adjustment rates.",
"Includes provision that cooperative units qualify for pension adjustment revenue."
],
"removed": [],
"summary": "The bill modifies the pension adjustment revenue calculation for school districts.",
"modified": []
},
"citation": "126C.10",
"subdivision": "subdivision 37"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References pension adjustments from fiscal year 2014.",
"modified": []
},
"citation": "127A.50",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends contributions to Teachers Retirement Association fund.",
"modified": [
"Rates of employer contributions are increased."
]
},
"citation": "354.42",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
"Increases retirement annuities for early retirees."
],
"removed": [],
"summary": "Modifies annuity options for retirees under the Teachers Retirement Association.",
"modified": []
},
"citation": "354.44",
"subdivision": "subdivision 6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Increases postretirement adjustments for early retirees.",
"modified": [
"Adjustment calculations have been updated."
]
},
"citation": "356.415",
"subdivision": "subdivision 1d"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Relates to cooperative units and revenue qualification.",
"modified": [
"Allows cooperative units to be treated as districts for aid distribution."
]
},
"citation": "123A.26",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines cooperative units in context of pension adjustment revenue.",
"modified": []
},
"citation": "123A.24",
"subdivision": "subdivision 2"
}
]