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SF2992 (Legislative Session 94 (2025-2026))

Teachers Retirement Association enhanced early retirement deduction age lowered from 62 to 60 provision and postretirement adjustment delay clarification provision

Related bill: HF2329

AI Generated Summary

Purpose of the Bill

This bill aims to modify provisions related to the Minnesota Teachers Retirement Association. The main purpose is to lower the age for enhanced early retirement and to clarify the postretirement adjustment delay.

Main Provisions

  1. Lowering Early Retirement Age:

    • The bill proposes to reduce the minimum age from 62 to 60 for teachers to qualify for enhanced early retirement benefits. This allows eligible educators to retire earlier with potentially better financial terms.

  2. Postretirement Adjustment:

    • It introduces clarifications on how postretirement adjustments are delayed and applied. This involves adjustments in the annuity calculations for early retirees depending on their service years and retirement age at the time of retirement.

  3. Annuitant Benefits Calculation:

    • For members with at least 30 years of service, the annuity is calculated with a six percent reduction for each year of early retirement before the normal retirement age.
    • Members who have less than 30 years of service or retire before age 60 face different reduction factors.

Significant Changes to Existing Law

  • The reduction in the qualifying age for enhanced early retirement from 62 to 60 changes current policy and may affect retirement planning for educators.
  • The proposed adjustments aim to ensure consistent calculation and administration of retirement benefits, aligning with changes in member demographics and financial planning needs.

Relevant Terms

  • Teachers Retirement Association
  • Early retirement
  • Annuity
  • Postretirement adjustment
  • Service credit
  • Retirement age policies

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 26, 2025SenateFloorActionIntroduction and first reading
March 26, 2025SenateFloorActionReferred toState and Local Government
April 08, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the computation of formula program retirement annuity under section 354.44 subdivision 6, specifically addressing changes in active member calculations and eligibility criteria.",
      "modified": [
        "Lowers age for enhanced early retirement reduction from 62 to 60.",
        "Clarifies post-retirement adjustment delay requirements."
      ]
    },
    "citation": "354.44",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amendments clarify the delay in post-retirement adjustments for specific retirees under section 356.415 subdivision 1d.",
      "modified": [
        "Clarifies post-retirement adjustment delay requirements."
      ]
    },
    "citation": "356.415",
    "subdivision": "subdivision 1d"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References are made concerning average salary calculations for retirement annuities under section 354.05 subdivision 13a.",
      "modified": [
        "Adjustments in salary calculations linked to member's retirement formulas."
      ]
    },
    "citation": "354.05",
    "subdivision": "subdivision 13a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References existing associations covered under section 356.30 subdivision 3 for pension fund membership eligibility criteria.",
      "modified": [
        "Clarifies annuity calculation conditions for certain pension fund members."
      ]
    },
    "citation": "356.30",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Addresses the conditions for salary audit concerning high earners under section 354.05 subdivisions 35 and 35a.",
      "modified": [
        "Specification of audit requirements for pensions based on high salary figures."
      ]
    },
    "citation": "354.05",
    "subdivision": "subdivisions 35 and 35a"
  }
]

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