SF 4860
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/26/2026 09:30 a.m.
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A bill for an act
relating to retirement; modifying provisions relating to the St. Paul Teachers
Retirement Fund Association; increasing the pension adjustment revenue for
Independent School District No. 625; appropriating money; amending Minnesota
Statutes 2024, sections 354A.12, subdivisions 1, 2a; 354A.29, subdivision 7;
Minnesota Statutes 2025 Supplement, section 126C.10, subdivision 37.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2025 Supplement, section 126C.10, subdivision 37, is
amended to read:
Subd. 37.
Pension adjustment revenue.
(a) A school district's pension adjustment
revenue equals the sum of:
(1) the greater of zero or the product of:
(i) the difference between the district's adjustment under Minnesota Statutes 2012, section
127A.50, subdivision 1, for fiscal year 2014 per adjusted pupil unit and the state average
adjustment under Minnesota Statutes 2012, section 127A.50, subdivision 1, for fiscal year
2014 per adjusted pupil unit; and
(ii) the district's adjusted pupil units for the fiscal year; and
(2) the product of the salaries paid to district employees who were members of the
Teachers Retirement Association and the St. Paul Teachers' Retirement Fund Association
for the prior fiscal year and the district's pension adjustment rate for the fiscal year. The
pension adjustment rate for Independent School District No. 625, St. Paul, equals deleted text begin 2.3 percent
for fiscal year 2023, 2.5 percent for fiscal year 2024 and fiscal year 2025, anddeleted text end 3.25 percent
for fiscal year 2026new text begin and 5.95 percent for fiscal year 2027new text end and later. The pension adjustment
rate for all other districts equals 1.25 percent for fiscal year 2025 and 2.31 percent for fiscal
year 2026 and later.
(b) For fiscal year 2025, the state total pension adjustment revenue under paragraph (a),
clause (2), must not exceed the amount calculated under paragraph (a), clause (2), for fiscal
year 2024. The commissioner must prorate the pension adjustment revenue under paragraph
(a), clause (2), so as not to exceed the maximum.
(c) For fiscal year 2026 and fiscal year 2027, the state total pension adjustment revenue
under paragraph (a), clause (2), must not be prorated.
(d) For fiscal year 2028 and later, the state total pension adjustment revenue under
paragraph (a), clause (2), must not exceed the amount calculated under paragraph (a), clause
(2), for fiscal year 2027. The commissioner must prorate the pension adjustment revenue
under paragraph (a), clause (2), so as not to exceed the maximum.
(e) Notwithstanding section 123A.26, subdivision 1, a cooperative unit, as defined in
section 123A.24, subdivision 2, qualifies for pension adjustment revenue under paragraph
(a), clause (2), as if it was a district, and the aid generated by the cooperative unit deleted text begin shalldeleted text end new text begin mustnew text end
be paid to the cooperative unit.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for revenue in fiscal years 2027 and later.
new text end
Sec. 2.
Minnesota Statutes 2024, section 354A.12, subdivision 1, is amended to read:
Subdivision 1.
Employee contributions.
(a) The contribution required to be paid by
each member is the percentage of total salary specified below for the applicable program:
| Program |
Percentage of Total Salary |
||
|
deleted text begin
basic program after June 30, 2016, through June 30, 2023 deleted text end |
deleted text begin
10 deleted text end |
||
|
deleted text begin
basic program after June 30, 2023, through June 30, 2024 deleted text end |
deleted text begin
10.25 deleted text end |
||
|
deleted text begin
basic program after June 30, 2024, through June 30, 2025 deleted text end |
deleted text begin
10 deleted text end |
||
| basic program after June 30, 2025, through June 30, 2026 |
11.25 |
||
| basic program after June 30, 2026 |
11.5 |
||
|
deleted text begin
coordinated program after June 30, 2016, through June 30, 2023 deleted text end |
deleted text begin
7.5 deleted text end |
||
|
deleted text begin
coordinated program after June 30, 2023, through June 30, 2024 deleted text end |
deleted text begin
7.75 deleted text end |
||
|
deleted text begin
coordinated program after June 30, 2024, through June 30, 2025 deleted text end |
deleted text begin
7.5 deleted text end |
||
| coordinated program after June 30, 2025, through June 30, 2026 |
8.75 |
||
| coordinated program after June 30, 2026 |
deleted text begin 9deleted text end new text begin 8 new text end |
||
(b) Contributions must be made by deduction from salary and must be remitted directly
to the association at least once each month.
(c) When an employee contribution rate changes for a fiscal year, the new contribution
rate is effective for the entire salary paid by the employer with the first payroll cycle reported.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2026.
new text end
Sec. 3.
Minnesota Statutes 2024, section 354A.12, subdivision 2a, is amended to read:
Subd. 2a.
Employer regular and additional contributions.
(a) The employing units
deleted text begin shalldeleted text end new text begin mustnew text end make the following employer contributions to the teachers retirement fund
association:
(1) for each coordinated member of the St. Paul Teachers Retirement Fund Association,
the employing unit deleted text begin shalldeleted text end new text begin mustnew text end make a regular employer contribution to the retirement fund
association in an amount equal to the designated percentage of the salary of the coordinated
member as provided below:
|
deleted text begin
after June 30, 2022 deleted text end |
deleted text begin
8.8 percent deleted text end |
|
|
deleted text begin
after June 30, 2023 deleted text end |
deleted text begin
9 percent deleted text end |
|
| after June 30, 2025new text begin , through June 30, 2026 new text end |
9.75 percent |
|
|
new text begin
after June 30, 2026 new text end |
new text begin
12.45 percent new text end |
(2) for each basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit deleted text begin shalldeleted text end new text begin mustnew text end make a regular employer contribution to the respective retirement
fund in an amount according to the schedule below:
|
deleted text begin
after June 30, 2022 deleted text end |
deleted text begin
12.3 percent of salary deleted text end |
|
|
deleted text begin
after June 30, 2023 deleted text end |
deleted text begin
12.5 percent of salary deleted text end |
|
| after June 30, 2025new text begin , through June 30, 2026 new text end |
13.25 percent of salary |
|
|
new text begin
after June 30, 2026 new text end |
new text begin
15.95 percent of salary new text end |
(3) for each basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit deleted text begin shalldeleted text end new text begin mustnew text end make an additional employer contribution to the respective fund
in an amount equal to 3.64 percent of the salary of the basic member;new text begin and
new text end
(4) for each coordinated member of the St. Paul Teachers Retirement Fund Association,
the employing unit deleted text begin shalldeleted text end new text begin mustnew text end make an additional employer contribution to the respective
fund in an amount equal to 3.84 percent of the coordinated member's salary.
(b) The regular and additional employer contributions must be remitted directly to the
St. Paul Teachers Retirement Fund Association at least once each month. Delinquent amounts
are payable with interest under the procedure in subdivision 1a.
(c) Payments of regular and additional employer contributions for school district or
technical college employees who are paid from normal operating funds must be made from
the appropriate fund of the district or technical college.
(d) When an employer contribution rate changes for a fiscal year, the new contribution
rate is effective for the entire salary paid by the employer with the first payroll cycle reported.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2026.
new text end
Sec. 4.
Minnesota Statutes 2024, section 354A.29, subdivision 7, is amended to read:
Subd. 7.
Postretirement adjustments.
(a) Except as set forth in paragraph (c), each
person who has been receiving an annuity or benefit under the articles of incorporation, the
bylaws, or this chapter, whose effective date of benefit commencement occurred on or
before July 1 of the calendar year immediately before the adjustment, is eligible to receive
an annual postretirement adjustmentdeleted text begin , effective asdeleted text end ofnew text begin 1.5 percent on January 1, 2027, and new text end
each January 1deleted text begin , as follows:deleted text end new text begin thereafter.
new text end
deleted text begin
(1) there shall be no postretirement adjustment on January 1, 2019, and January 1, 2020;
and
deleted text end
deleted text begin
(2) the postretirement adjustment shall be one percent on January 1, 2021, and each
January 1 thereafter.
deleted text end
(b) A postretirement adjustment is to be applied as a permanent increase to the regular
payment of each eligible member on January 1. For any eligible member whose effective
date of benefit commencement occurred after January 1 of the immediately preceding
calendar year, the amount of the postretirement adjustment must be reduced by 50 percent.
(c) Each person who retires on or after July 1, 2024, is entitled to an annual postretirement
adjustment, effective as of each January 1, beginning with the year following the year in
which the member attains normal retirement age.
(d) Paragraph (c) does not apply to members who retire under section 354A.31,
subdivision 6, paragraph (b), or who retire when the member is at least age 62 and has at
least 30 years of service under section 354A.31, subdivision 7.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for postretirement adjustments beginning
on or after January 1, 2027.
new text end
Sec. 5. new text begin EDUCATION APPROPRIATIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Department of Education. new text end
new text begin
The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated. These sums are in addition to appropriations made for the same purpose in any
other law.
new text end
new text begin Subd. 2. new text end
new text begin General education aid. new text end
new text begin
(a) For general education aid under Minnesota Statutes,
section 126C.13, subdivision 4:
new text end
|
new text begin
$ new text end |
new text begin
....... new text end |
new text begin
..... new text end |
new text begin
2027 new text end |
|
|
new text begin
$ new text end |
new text begin
....... new text end |
new text begin
..... new text end |
new text begin
2028 new text end |
new text begin
(b) The 2027 appropriation includes $0 for 2026 and $....... for 2027.
new text end
new text begin
(c) The 2028 appropriation includes $....... for 2027 and $....... for 2028.
new text end