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SF3239 (Legislative Session 94 (2025-2026))

Teachers Retirement Association (TRA) pension adjustment revenue for school districts increase provision, employer contributions increase provision, unreduced retirement annuity upon reaching age 62 with 30 years of service provision, and appropriation

Related bill: HF2318

AI Generated Summary

Purpose of the Bill

The bill seeks to modify the pension systems affecting teachers in Minnesota. This includes increasing financial support for school districts, adjusting how some funds are calculated, and allowing for earlier retirement with full benefits under specific conditions.

Main Provisions

  • Pension Adjustment Revenue: The bill increases the financial revenue provided to school districts for pension adjustments. This aims to offset the costs districts incur due to teacher pensions.
  • Employer Contributions: Increases the contributions required from employers towards teacher retirement benefits.
  • Retirement Annuity Adjustments: It provides teachers the ability to receive retirement benefits without reductions starting at age 62, given they have completed 30 years of service.
  • Revenue Calculation and Limits: Details the method of calculating pension adjustment revenue based on school district employee salaries and establishes limits and adjustments on these revenues through 2028.

Significant Changes

  • Pension Adjustment Rates: For Independent School District No. 625 in St. Paul, the pension adjustment rate will be 3.25% starting in fiscal year 2026 and for all subsequent years. For other districts, the rate will be increased to 3.0% in 2026 and later.
  • Funding Formula Adjustments: Updates the way pension adjustment revenue is calculated and allocated, including proration directives to ensure financial caps are not exceeded in certain fiscal years.

Relevant Terms

  • Teachers Retirement Association
  • Pension adjustment revenue
  • Employer contributions
  • Unreduced retirement annuity
  • Adjusted pupil units
  • Fiscal year revenue
  • Independent School District No. 625
  • Cooperative unit

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 02, 2025SenateFloorActionIntroduction and first reading
April 02, 2025SenateFloorActionReferred toState and Local Government
April 06, 2025SenateFloorActionAuthor added
April 09, 2025SenateFloorActionAuthor added
April 21, 2025SenateFloorActionAuthor added
April 21, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "New percentage rates for pension adjustment revenue are specified for fiscal years 2026 and later."
      ],
      "removed": [],
      "summary": "This bill amends the pension adjustment revenue calculations for school districts under section 126C.10, subdivision 37.",
      "modified": [
        "Adjusts existing rates for fiscal years 2023 through 2025."
      ]
    },
    "citation": "126C.10",
    "subdivision": "subdivision 37"
  },
  {
    "analysis": {
      "added": [
        "Cooperative units now qualify for pension adjustment revenue as if they are school districts."
      ],
      "removed": [],
      "summary": "This bill includes provisions for cooperative units regarding pension adjustment revenue, referencing section 123A.26, subdivision 1.",
      "modified": []
    },
    "citation": "123A.26",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the definition of cooperative units regarding pension adjustment revenue under section 123A.24, subdivision 2.",
      "modified": []
    },
    "citation": "123A.24",
    "subdivision": "subdivision 2"
  }
]

Sponsors