MN HF3972

Modifies early retirement reduction factors for Teachers Retirement Association members retiring before normal retirement age, changing reduction percentages for members ages 55-57 from 4 percent to 7 percent per year and adjusting age thresholds for reduction factor application.

Increases employer contribution rates to the Teachers Retirement Association effective July 1, 2025: coordinated members from 8.75 percent to 9.5 percent and basic members from 12.75 percent to 13.5 percent after June 30, 2025.

Increases pension adjustment revenue rates for school districts effective July 1, 2025: St. Paul increases to 3.25 percent and other districts increase to 2.0 percent for fiscal year 2026 and later, with caps on total state pension adjustment revenue in fiscal years 2025 and 2028 onward.

Appropriates increased general fund bases to the Department of Education, Minnesota State Academies, Perpich Center for the Arts, and Minnesota State Colleges and Universities starting in fiscal year 2026 for increased TRA employer contributions, with annual increases of 3 percent thereafter.