SF2992 (Legislative Session 94 (2025-2026))
Teachers Retirement Association enhanced early retirement deduction age lowered from 62 to 60 provision and postretirement adjustment delay clarification provision
Related bill: HF2329
AI Generated Summary
Purpose of the Bill
The bill aims to make changes to the retirement benefits for members of the Minnesota Teachers Retirement Association (TRA). Specifically, it seeks to lower the age at which enhanced early retirement benefits reductions apply and clarify the process for postretirement adjustments.
Main Provisions
- Lowering Retirement Age: The bill reduces the age from 62 to 60 at which TRA members can receive enhanced early retirement benefits without facing full penalties that would otherwise apply before reaching normal retirement age.
- Early Retirement Reduction: For members with 30 or more years of service, the early retirement reduction will decrease by six percent for each year retirement age precedes the normal retirement age starting at 60 rather than 62.
- Secondary Reduction Factors: Adjustments will also be applied for members retiring before 60, with specific percentage reductions based on their age at retirement:
- Four percent per year reduction from age 55 through 58.
- Seven percent per year reduction for age 59 until normal retirement age.
- Clarification of Postretirement Adjustments: The bill outlines how retirement annuities will be augmented if received early and deferred until reaching normal retirement age, phasing out augmentations by July 2024.
Significant Changes
- Changes the qualifying age for enhanced early retirement from 62 to 60, allowing members to access benefits with reduced penalties earlier.
- Updates and lowers the percentage reductions applied to retirement benefits for early retirees, creating different tiers based on specific age brackets.
- Clarifies the method and timing for adjusting retirement annuities, including phasing out augmentation rates by 2024.
Relevant Terms
- Teachers Retirement Association (TRA)
- Enhanced early retirement
- Retirement age
- Annuity
- Augmentation
- Postretirement adjustment
- Normal retirement age
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 26, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 26, 2025 | Senate | Floor | Action | Referred to | State and Local Government |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill amends section 354.44 subdivision 6, which pertains to the computation of the formula program retirement annuity for members of the Teachers Retirement Association.",
"modified": [
"Lowered the enhanced early retirement reduction age from 62 to 60.",
"Clarified the early reduction factor and postretirement adjustment delay."
]
},
"citation": "354.44",
"subdivision": "subdivision 6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references section 356.415 subdivision 1d, which outlines postretirement adjustments.",
"modified": [
"Clarification on the delay of postretirement adjustments."
]
},
"citation": "356.415",
"subdivision": "subdivision 1d"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The definition of average salary under section 354.05 subdivision 13a is used in the computation of retirement annuities.",
"modified": []
},
"citation": "354.05",
"subdivision": "subdivision 13a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References are made to section 356.30 subdivision 3 in determining formula service credit eligibility and application.",
"modified": []
},
"citation": "356.30",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill mentions section 354.05 subdivisions 35 and 35a concerning audit requirements for salary figures.",
"modified": []
},
"citation": "354.05",
"subdivision": "subdivision 35"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references section 354.05 subdivisions 35 and 35a about audit requirements for salary computation.",
"modified": []
},
"citation": "354.05",
"subdivision": "subdivision 35a"
}
]