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SF3507 (Legislative Session 94 (2025-2026))

Teachers Retirement Association provisions modifications; appropriating money

AI Generated Summary

Purpose of the Bill

The bill addresses changes to the retirement system for teachers in Minnesota. It aims to improve retirement benefits for teachers by adjusting retirement age requirements and contribution rates, thereby enhancing financial security for retired educators.

Main Provisions

  • Unreduced Annuity at Age 60: Teachers can receive an unreduced retirement annuity if they retire at age 60 with 30 years of service. This is an improvement from the previous system, which encouraged waiting longer or accepting reduced benefits.

  • Early Retirement Changes: Modifies the early retirement reduction factors, making the financial effects less severe for those who choose to begin their annuity before the normal retirement age.

  • Postretirement Adjustments: Increases the adjustments made to pensions after retirement, potentially resulting in higher periodic payments to retirees.

  • Removal of Adjustment Delay: Eliminates the delay in postretirement adjustments for members who retire before reaching the normal retirement age, allowing them to receive full adjustments immediately.

  • Increased Employer Contributions: Raises the financial contributions required from employers to support the retirement fund.

  • Pension Adjustment Revenue: Adjusts the pension adjustment revenue for school districts, determining how funds will be allocated annually, based on district-specific factors like employee salaries and adjustments to funding rates.

Significant Changes to Existing Law

  • The bill modifies existing statutes related to pension funding and benefits, specifically within the Teachers Retirement Association.
  • It introduces increased pension adjustment rates over the upcoming fiscal years, particularly impacting Independent School District No. 625 in St. Paul and other districts differently with varying rates.

Relevant Terms

  • Unreduced retirement annuity
  • Early retirement reduction factors
  • Postretirement adjustments
  • Employer contributions
  • Pension adjustment revenue
  • Retirement age
  • Teachers Retirement Association

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
May 12, 2025SenateFloorActionIntroduction and first reading
May 12, 2025SenateFloorActionReferred toState and Local Government

Citations

 
[
  {
    "analysis": {
      "added": [
        "Modifies the pension adjustment rate for fiscal years 2023 through 2026 and beyond."
      ],
      "removed": [
        "None explicitly removed but previous fiscal year rates are updated."
      ],
      "summary": "The bill amends the pension adjustment revenue calculations for school districts under section 126C.10, subdivision 37.",
      "modified": [
        "Pension adjustment percentage rates for St. Paul and other districts are adjusted."
      ]
    },
    "citation": "126C.10",
    "subdivision": "subdivision 37"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section involves amendments to employer contributions for the Teachers Retirement Association.",
      "modified": [
        "Increases employer contributions."
      ]
    },
    "citation": "354.42",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section modifies retirement annuity conditions under subdivision 6.",
      "modified": [
        "Modifies early retirement reduction factors and conditions for annuity commencement."
      ]
    },
    "citation": "354.44",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Removes postretirement adjustment delay for early retirees."
      ],
      "summary": "Adjustments to the post-retirement benefits and calculations for TRA members.",
      "modified": [
        "Increases postretirement adjustments."
      ]
    },
    "citation": "356.415",
    "subdivision": "subdivision 1d"
  },
  {
    "analysis": {
      "added": [
        "Cooperative units qualify for pension adjustment revenue as if they were districts."
      ],
      "removed": [],
      "summary": "The bill affects cooperative unit qualification for pension adjustment revenue.",
      "modified": []
    },
    "citation": "123A.26",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines cooperative units relative to pension adjustment revenue eligibility.",
      "modified": []
    },
    "citation": "123A.24",
    "subdivision": "subdivision 2"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors