Teachers Retirement Association; pension adjustment revenue increased for school districts, employer contributions increased, unreduced retirement annuity provided upon reaching age 62 with 30 years of service, and money appropriated.

2025-2026 Regular Session Introduced by Paul Anderson and 15 co-sponsors

The bill would raise TRA funding via higher employer contributions and pension adjustment revenue, and allow an unreduced annuity at age 62 with 30 years if enacted.

Author added McDonald

#education-schooldistricts #retirement-publicandstateemployees #teachers

Overview

HF 2318 is a proposed Minnesota House bill related to the Teachers Retirement Association (TRA). It aims to adjust funding and retirement provisions for TRA, including increasing pension adjustment revenue for school districts, increasing employer contributions, providing an unreduced retirement annuity for certain long-serving teachers, and making an appropriation to support these changes. The bill is categorized under Education-School Districts and Retirement-Public and State Employees (TEACHERS). The companion to this bill is SF 3239.

Introduction: March 13, 2025

Latest noted status: May 9, 2025, author updated to McDonald

Related bill: SF 3239 (companion)

Key Provisions (as described)

Increase pension adjustment revenue for school districts

The bill would allocate more revenue related to pension adjustments to school districts. This change appears to modify the funding mechanism within TRA to support school districts’ pension-related obligations.

Increase employer contributions

Employer contributions to the Teachers Retirement Association would be increased. This expands the share of funding coming from school districts and other state/educational employers into TRA.

Unreduced retirement annuity at age 62 with 30 years of service

The bill provides for an unreduced retirement annuity for individuals who reach age 62 with at least 30 years of credited service. In practice, this would mean no actuarial reduction to benefits for those meeting the 62/30 threshold, potentially extending or altering retirement timing for a subset of TRA members.

Appropriations

The measure includes a money appropriation to support the changes above (funding for increased pension adjustments, higher employer contributions, and related TRA provisions).

Who Would Be Affected

Teachers Retirement Association (TRA) and its plan administration

School districts and other educational employers that contribute to TRA

Educators and retirees with TRA-covered service, particularly those with at least 30 years of service who might qualify for an unreduced annuity at age 62

Minnesota taxpayers and state education funding programs applicable to pension funding and district-level costs, given the changes to revenue and contributions

Procedural and Timeline Aspects

The bill was introduced on March 13, 2025, and referred early in its process to the State Government Finance and Policy division (per initial reading details).

Legislative actions show a sequence of authors being added on multiple dates (from March 2025 through May 9, 2025), with the latest amendment listing McDonald as author.

The bill has a companion in the Senate, SF 3239.

Notes and Considerations

Specific fiscal impact (dollar amounts, percentage increases, or timelines) is not provided in the summary available here.

The policy change for unreduced benefits at 62 with 30 years of service could affect both retirement eligibility timing and TRA long-term funding needs.

A companion bill (SF 3239) may provide parallel language and considerations in the Senate.

This summary aims to convey the bill’s substantive changes and affected parties based on the provided bill description and actions. For precise text, amendments, and fiscal notes, consult the bill’s official filings and fiscal impact statements.

Bill