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HF2341 (Legislative Session 94 (2025-2026))

Teachers Retirement Association; unreduced retirement annuity upon reaching age 60 with 30 years of service provided, various other retirement provisions modified, employer contributions increased, and money appropriated.

Related bill: SF2523

AI Generated Summary

Purpose of the Bill

The bill aims to amend various aspects of the retirement system for teachers in Minnesota. It focuses on improving retirement benefits, adjusting employer contributions, and modifying revenue allocations for school districts in connection with pension adjustments.

Main Provisions

  • Unreduced Retirement Annuity: Teachers can receive an unreduced retirement annuity upon reaching age 60, provided they have completed 30 years of service.
  • Early Retirement Modifications: The bill alters the early retirement reduction factors, potentially reducing penalties for commencing an annuity before reaching normal retirement age.
  • Postretirement Adjustments: There are increases in postretirement adjustments, meaning retirees may see higher pension benefits over time.
  • Adjustment Delay Removal: Any delay in postretirement adjustments for those retiring before the normal retirement age is removed, allowing for immediate increases.
  • Employer Contribution Increase: The legislation requires employers to increase their contributions to support these enhanced retirement benefits.
  • School District Revenue Adjustment: It raises the pension adjustment revenue for school districts, which will be calculated based on various factors such as pupil units and employee salaries.

Significant Changes to Existing Law

  • Amended Statutes: The bill proposes changes to the Minnesota Statutes sections 126C.10, 354.42, 354.44, and 356.415.
  • Pension Adjustment Rates: The pension adjustment rates are adjusted for various fiscal years, with changes implemented specifically for Independent School District No. 625 (St. Paul) and other districts, showing significant increases up to 5.8% for fiscal year 2026 and beyond.
  • Revenue Prorating: There are specific guidelines on how pension adjustment revenues should be capped and prorated for fiscal years through 2028.

Relevant Terms

  • Retirement system, annuity, early retirement, postretirement adjustment, employer contribution, school district revenue, pension adjustment, unreduced annuity.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy
March 16, 2025HouseFloorActionAuthors added
March 26, 2025HouseFloorActionAuthor added
March 31, 2025HouseFloorActionAuthors added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Introduces new percentage rates for fiscal years 2024 to 2026."
      ],
      "removed": [],
      "summary": "This bill amends the pension adjustment revenue calculation for school districts under section 126C.10.",
      "modified": [
        "Alters the calculation of pension adjustment rates for specific fiscal years."
      ]
    },
    "citation": "126C.10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies employer contributions to the Teachers Retirement Association as per section 354.42.",
      "modified": [
        "Increases the employer contribution rates."
      ]
    },
    "citation": "354.42"
  },
  {
    "analysis": {
      "added": [
        "Allows for an unreduced retirement annuity upon reaching age 60 with 30 years of service."
      ],
      "removed": [],
      "summary": "This bill modifies eligibility and factors related to retirement annuities under section 354.44.",
      "modified": [
        "Updates the early retirement reduction factors."
      ]
    },
    "citation": "354.44"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Eliminates the postretirement adjustment delay for early retirees."
      ],
      "summary": "This bill alters postretirement adjustments by modifying section 356.415.",
      "modified": [
        "Increases the postretirement adjustment amounts."
      ]
    },
    "citation": "356.415"
  }
]

Sponsors