MN HF650

Modifies early retirement adjustment factors for Teachers Retirement Association members who are at least 55 years old and first became members after June 30, 1989.

Establishes a five-year phase-in period (July 1, 2015 to June 30, 2020) using blended reduction factors that gradually transition from current reduction rates to new actuarial equivalent rates.

Creates different reduction factors effective after June 30, 2020: six percent per year for members age 62+ with 30+ years of service, and four to seven percent per year for younger members or those with less service.

The new reduction factors are based on three percent annual augmentation for employees hired before July 1, 2006, and 2.5 percent annual augmentation for those hired after June 30, 2006.

Takes effect July 1, 2013, except for provisions under section 354.46 which remain under current law until June 30, 2015.