HF2329

HF2329 (Legislative Session 94 (2025-2026))

Teachers Retirement Association; age lowered from 62 to 60 for the enhanced early retirement reduction, and postretirement adjustment delay clarified.

Related bill: SF2992

AI Generated Summary

Purpose of the Bill

The bill aims to modify the retirement terms for teachers in the Minnesota Teachers Retirement Association by lowering the age for enhanced early retirement and by clarifying the rules surrounding post-retirement adjustments.

Main Provisions

Enhanced Early Retirement Age Reduction: The bill reduces the age for teachers to qualify for enhanced early retirement from 62 to 60. This means teachers can retire earlier with fewer penalties if they have served for at least 30 years.
Early Retirement Reduction Factors: For teachers retiring before the normal retirement age but after reaching at least age 60 with 30 years of service, the early retirement reduction factor is set at six percent for each year they retire before the normal retirement age.
Clarification on Postretirement Adjustment: Adjustments to a teacher's annuity, once they begin receiving it before the normal retirement age, will no longer include augmentation for teachers retiring after June 30, 2024.

Significant Changes

The bill lowers the qualifying age for enhanced early retirement to 60, allowing more teachers to retire early without as severe financial penalties.
It alters the current structure of post-retirement adjustment, ensuring teachers retiring early after June 2024 do not receive additional augmentation on their annuity.

Relevant Terms

Teachers Retirement Association, enhanced early retirement, retirement annuity, post-retirement adjustment, augmentation, normal retirement age, service credit, reduction factor.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 12, 2025	House	Floor	Action	Introduction and first reading, referred to	State Government Finance and Policy
March 16, 2025	House	Floor	Action	Authors added

Citations

[
  {
    "analysis": {
      "added": [
        "A new subsection for further clarifying age-related retirement annuity reductions."
      ],
      "removed": [],
      "summary": "This bill modifies the Teachers Retirement Association's retirement age and computation of formula program retirement annuity rules under section 354.44.",
      "modified": [
        "Lowers the age for enhanced early retirement reduction from 62 to 60."
      ]
    },
    "citation": "354.44"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references adjustments related to annuity computations in section 356.415.",
      "modified": [
        "Clarifies postretirement adjustment delays aligned with age and years of service."
      ]
    },
    "citation": "356.415"
  }
]