SF3507 (Legislative Session 94 (2025-2026))
Teachers Retirement Association provisions modifications; appropriating money
AI Generated Summary
Purpose of the Bill
The bill aims to modify retirement benefits and funding for teachers in Minnesota, specifically addressing the Teachers Retirement Association. It seeks to make retirement more accessible and improve financial conditions for teachers as they retire.
Main Provisions
Unreduced Retirement Annuity: The bill allows teachers to receive a full retirement annuity when they reach the age of 60 and have completed 30 years of service, without the reduction typically applied for early retirement.
Early Retirement Reduction Modifications: It adjusts the factors that reduce retirement benefits for those who choose to retire before reaching the normal retirement age, making early retirement more financially viable for teachers.
Increased Postretirement Adjustments: The bill proposes an increase in adjustments to retirement payments after retirement, enhancing financial support for retirees.
Removal of Postretirement Adjustment Delays: Eliminates delays in adjustment for those who retire before reaching the normal retirement age, allowing them to benefit from financial adjustments immediately upon retirement.
Increased Employer Contributions: Employers will be required to contribute more to the retirement fund, likely aimed at ensuring the long-term sustainability of the pension system.
Pension Adjustment Revenue for School Districts: The bill increases the pension adjustment revenue provided to school districts, ensuring that they can effectively manage pension contributions and related expenses.
Appropriation of Additional Funds: There is an appropriation of state funds to support these changes and ensure that school districts can manage the increased financial requirements.
Significant Changes to Existing Law
- The retirement benefits framework is revised to offer greater financial incentives for early retirees.
- Specific adjustments to pension revenue calculations and rates for different fiscal years are introduced, providing a more structured financial plan for school districts.
Relevant Terms
- Teachers Retirement Association
- Unreduced Retirement Annuity
- Early Retirement
- Postretirement Adjustments
- Employer Contributions
- Pension Adjustment Revenue
- Appropriation
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| May 12, 2025 | Senate | Floor | Action | Introduction and first reading | |
| May 12, 2025 | Senate | Floor | Action | Referred to | State and Local Government |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "Modifies the pension adjustment revenue formula for school districts.",
"modified": [
"Adjusts the pension adjustment rate for St. Paul and other districts for fiscal years 2023 to 2026 and later."
]
},
"citation": "126C.10",
"subdivision": "subdivision 37"
}
]