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HF2318 (Legislative Session 94 (2025-2026))

Teachers Retirement Association; pension adjustment revenue increased for school districts, employer contributions increased, unreduced retirement annuity provided upon reaching age 62 with 30 years of service, and money appropriated.

Related bill: SF3239

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to amend existing laws to increase the pension adjustment revenue for school districts, enhance employer contributions, and allow for an unreduced retirement annuity for teachers under specific conditions. This bill aims to improve retirement benefits for teachers and adjust financial contributions from school districts towards teacher pensions.

Main Provisions

  • Pension Adjustment Revenue: The bill revises the formula used to calculate pension adjustment revenue for school districts. This includes setting different rates for different fiscal years, with specific rates for Independent School District No. 625 (St. Paul) and all other districts.

  • Employer Contributions: The bill seeks to increase employer contributions to the Teachers Retirement Association, which involves a complex calculation based on the difference between district adjustments and state averages, adjusted by pupil units.

  • Unreduced Retirement Annuity: Teachers are entitled to an unreduced retirement annuity at age 62 if they have completed 30 years of service, providing more advantageous retirement terms for those who meet these conditions.

Significant Changes to Existing Law

  • Increased Rate for Pension Adjustment: The pension adjustment rates are increased progressively over the fiscal years 2023 to 2026 for both St. Paul and other districts. This adjustment means increased funding for pensions based on salaries paid to district employees who are members of the Teachers Retirement Association.

  • Proration of Pension Adjustment Revenue: Specific fiscal year limits have been set, with mechanisms in place for proration to ensure caps are not exceeded in fiscal years 2025 and 2028, respectively. The limitations ensure a balanced distribution of funds.

  • Changes in Qualifying Cooperative Units: Cooperative units, which are combinations of smaller districts, now qualify for pension adjustment revenue akin to individual districts, and these generated aids will be paid directly to the cooperative unit.

Relevant Terms

retirement, Teachers Retirement Association, pension adjustment revenue, employer contributions, unreduced retirement annuity, school districts, fiscal year, cooperative unit.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy
March 16, 2025HouseFloorActionAuthor added
March 19, 2025HouseFloorActionAuthor added
March 25, 2025HouseFloorActionAuthor added
March 31, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies pension adjustment revenue calculations for cooperative units."
      ],
      "removed": [],
      "summary": "The bill modifies pension adjustment revenue calculations for school districts under section 126C.10, Subdivision 37.",
      "modified": [
        "Updates pension adjustment rates for various fiscal years."
      ]
    },
    "citation": "126C.10 Subdivision 37"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to previous calculations based on adjustments under section 127A.50, Subdivision 1 for fiscal year 2014.",
      "modified": []
    },
    "citation": "127A.50 Subdivision 1"
  }
]

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