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HF1582 (Legislative Session 94 (2025-2026))

Teachers Retirement Association; unreduced retirement annuity upon reaching age 60 with 30 years of service provided, early retirement reduction factors for annuity commencement before normal retirement age modified, postretirement adjustments increased, other various retirement provisions modified, and money appropriated.

Related bill: SF2000

AI Generated Summary

This bill relates to the Teachers Retirement Association in Minnesota and proposes several changes to retirement benefits and funding for school districts. Key provisions of the bill include:

  1. Unreduced Retirement Benefits – Teachers will be eligible for an unreduced retirement annuity upon reaching age 60 with 30 years of service.

  2. Early Retirement Adjustments – Modifies the early retirement reduction factors for annuities that begin before the normal retirement age.

  3. Post-Retirement Adjustments – Increases postretirement adjustments and removes the postretirement adjustment delay for teachers who retire before the normal retirement age.

  4. Employer Contributions – Increases employer contributions to the Teachers Retirement Association.

  5. Pension Adjustment Revenue for Schools – Increases pension adjustment revenue for school districts to assist with pension costs. This includes:

    • Adjusted pension contribution rates for school districts, including higher rates for Independent School District No. 625 (St. Paul).
    • A limit or cap on total pension adjustment revenue for fiscal years 2025, 2026, and beyond.
    • Inclusion of cooperative education units in pension adjustment distributions.

  6. Appropriations – Allocates funding to support these changes.

The bill seeks to improve retirement benefits for teachers while providing school districts with additional financial support to account for increased pension costs.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 26, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy
February 27, 2025HouseFloorActionAuthors added
March 03, 2025HouseFloorActionAuthors added
March 05, 2025HouseFloorActionAuthors added
March 06, 2025HouseFloorActionAuthors added
March 10, 2025HouseFloorActionAuthors added
March 11, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies calculation adjustments for fiscal year 2028 and later."
      ],
      "removed": [
        "None identified."
      ],
      "summary": "The bill amends section 126C.10 to update pension adjustment revenue details for school districts based on various fiscal years and rates.",
      "modified": [
        "Updates pension adjustment rates for fiscal years 2023 through 2026 and beyond."
      ]
    },
    "citation": "126C.10"
  },
  {
    "analysis": {
      "added": [
        "None identified."
      ],
      "removed": [
        "None identified."
      ],
      "summary": "Amend section 354.42 to adjust employer contributions for Teachers Retirement Association members.",
      "modified": [
        "Employer contribution rates are increased."
      ]
    },
    "citation": "354.42"
  },
  {
    "analysis": {
      "added": [
        "None identified."
      ],
      "removed": [
        "Removes postretirement adjustment delays."
      ],
      "summary": "Modify section 354.44 for Teachers Retirement Association annuity factors and conditions.",
      "modified": [
        "Changes to early retirement reduction factors."
      ]
    },
    "citation": "354.44"
  },
  {
    "analysis": {
      "added": [
        "Increases postretirement adjustment rates."
      ],
      "removed": [
        "Postretirement adjustment delay for early retirees is eliminated."
      ],
      "summary": "Revises section 356.415 related to postretirement adjustments.",
      "modified": [
        "Modifications to retirement conditions applicable from age 60 with 30 years of service."
      ]
    },
    "citation": "356.415"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors