SF 1938

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/06/2024 04:12pm

A bill for an act
relating to retirement; Teachers Retirement Association and St. Paul Teachers
Retirement Fund Association; providing for unreduced retirement at age 62 or
with 35 years of service; restoring deferred annuities augmentation for teachers;
providing additional service credit for school employees; modifying postretirement
adjustments to tie increases to inflation; increasing employer contributions;
increasing the pension adjustment revenue for school districts; appropriating
money; amending Minnesota Statutes 2022, sections 126C.10, subdivision 37;
354.05, subdivision 38; 354.35, subdivision 2; 354.42, subdivision 3; 354.44,
subdivisions 1a, 5, 6; 354.55, subdivision 11; 354A.011, subdivision 15a; 354A.12,
subdivision 2a; 354A.29, subdivision 7; 354A.31, subdivisions 3, 6, 7; 354A.36,
subdivision 3; 354A.37, subdivision 2; 356.415, subdivision 1d; repealing
Minnesota Statutes 2022, section 354.35, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

TEACHERS UNREDUCED RETIREMENT AT AGE 62 OR 35 YEARS OF SERVICE

Section 1.

Minnesota Statutes 2022, section 354.05, subdivision 38, is amended to read:

Subd. 38.

Normal retirement age.

"Normal retirement age" means age deleted text begin 65 for a person
who first became a member of the association or a member of a pension fund listed in section
356.30, subdivision 3, before July 1, 1989. For a person who first becomes a member of
the association after June 30, 1989, normal retirement age means the higher of age 65 or
"retirement age," as defined in United States Code, title 42, section 416(l), as amended, but
not to exceed age 66 deleted text end new text begin 62 new text end .

Sec. 2.

Minnesota Statutes 2022, section 354.35, subdivision 2, is amended to read:

Subd. 2.

Election of accelerated annuity.

(a) Any coordinated member who retires
before normal retirement age may elect to receive an optional accelerated retirement annuity
from the association which provides for different annuity amounts over different periods
of retirement. The optional accelerated retirement annuity must take the form of an annuity
payable for the period before the member attains deleted text begin age 65, or deleted text end normal retirement age, in a
greater amount than the amount of the annuity calculated under section 354.44 on the basis
of the age of the member at retirement, but the optional accelerated retirement annuity must
be the actuarial equivalent of the member's annuity computed on the basis of the member's
age at retirement. The greater amount must be paid until the retiree reaches deleted text begin age 65, or deleted text end normal
retirement age, and at that time the payment from the association must be reduced. For each
year the retiree is under deleted text begin age 65, or deleted text end normal retirement age, up to five percent of the total life
annuity required reserves may be used to accelerate the optional retirement annuity under
this section.

deleted text begin (b) Members who retire before age 62 may elect to have the annuity under this subdivision
accelerated to age 62 rather than normal retirement age or age 65.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end The method of computing the optional accelerated retirement annuity provided
in this subdivision is established by the board of trustees. In establishing the method of
computing the optional accelerated retirement annuity or any modification of that procedure,
the board of trustees must obtain the written approval of the actuary retained under section
356.214. The written approval must be a part of the permanent records of the board of
trustees. The election of an optional accelerated retirement annuity is exercised by making
an application on a form provided by the executive director.

Sec. 3.

Minnesota Statutes 2022, section 354.44, subdivision 1a, is amended to read:

Subd. 1a.

Proportionate annuity.

A member who terminates employment at any time
during the academic year at the end of which the person is deleted text begin at the normal retirement deleted text end age new text begin 65
new text end or older shall, for the purpose of determining eligibility for a proportionate retirement
annuity, be considered to have been required to terminate employment at normal retirement
age or older pursuant to section 356.32. For purposes of this subdivision, an academic year
ends August 31.

Sec. 4.

Minnesota Statutes 2022, section 354.44, subdivision 5, is amended to read:

Subd. 5.

Resumption of teaching service after retirement.

(a) Any person who retired
under the provisions of this chapter and has thereafter resumed teaching in any employer
unit to which this chapter applies is eligible to continue to receive payments in accordance
with the annuity except that all or a portion of the annuity payments must be deferred during
the calendar year immediately following the fiscal year in which the person's salary from
the teaching service is in an amount greater than $46,000. The amount of the annuity deferral
is one-half of the salary amount in excess of $46,000 and must be deducted from the annuity
payable for the calendar year immediately following the fiscal year in which the excess
amount was earned.

(b) If the person is retired for only a fractional part of the fiscal year during the initial
year of retirement, the maximum reemployment salary exempt from triggering a deferral
as specified in this subdivision must be prorated for that fiscal year.

(c) After a person has reached the Social Security deleted text begin normal deleted text end retirement age new text begin as defined in
United States Code, title 42, section 416(l), as amended new text end , no deferral requirement is applicable
regardless of the amount of salary.

(d) The amount of the retirement annuity deferral must be handled or disposed of as
provided in section 356.47.

(e) For the purpose of this subdivision, salary from teaching service includes all salary
or income earned as a teacher as defined in section 354.05, subdivision 2, paragraph (a),
clause (1). Salary from teaching service also includes, but is not limited to:

(1) all income for services performed as a consultant, independent contractor, or
third-party supplier, or as an employee of a consultant, independent contractor, or third-party
supplier, to an employer unit covered by the provisions of this chapter; and

(2) the greater of either the income received or an amount based on the rate paid with
respect to an administrative position, consultant, independent contractor, or third-party
supplier, or as an employee of a consultant, independent contractor, or third-party supplier,
in an employer unit with approximately the same number of pupils and at the same level as
the position occupied by the person who resumes teaching service.

(f) Notwithstanding other paragraphs of this subdivision, if the reemployed annuitant
has a former spouse receiving a portion of the annuity under section 518.58, subdivision 1,
the portion payable to the former spouse must not be deferred.

Sec. 5.

Minnesota Statutes 2022, section 354.44, subdivision 6, is amended to read:

Subd. 6.

Computation of formula program retirement annuity.

(a) The formula
retirement annuity must be computed in accordance with the applicable provisions of the
formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
section 354.05, subdivision 13a, for the period of the member's formula service credit.

(b) This paragraph, in conjunction with paragraph (c), applies to a person who first
became a member of the association or a member of a pension fund listed in section 356.30,
subdivision 3, before July 1, 1989, unless paragraph (d), in conjunction with paragraph (e),
produces a higher annuity amount, in which case paragraph (d) applies. The average salary
as defined in section 354.05, subdivision 13a, multiplied by the following percentages per
year of formula service credit shall determine the amount of the annuity to which the member
qualifying therefor is entitled for service rendered before July 1, 2006:

	Period		Coordinated Member		Basic Member
	Each year of service during first ten		1.2 percent per year		2.2 percent per year
	Each year of service thereafter		1.7 percent per year		2.7 percent per year

For service rendered on or after July 1, 2006, by a member other than a member who
was a member of the former Duluth Teachers Retirement Fund Association between January
1, 2006, and June 30, 2015, and for service rendered on or after July 1, 2013, by a member
who was a member of the former Duluth Teachers Retirement Fund Association between
January 1, 2013, and June 30, 2015, the average salary as defined in section 354.05,
subdivision 13a, multiplied by the following percentages per year of service credit, determines
the amount the annuity to which the member qualifying therefor is entitled:

	Period		Coordinated Member		Basic Member
	Each year of service during first ten		1.4 percent per year		2.2 percent per year
	Each year of service after ten years of service		1.9 percent per year		2.7 percent per year

(c)(1) This paragraph applies only to a person who first became a member of the
association or a member of a pension fund listed in section 356.30, subdivision 3, before
July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in conjunction
with this paragraph than when calculated under paragraph (d), in conjunction with paragraph
(e).

(2) Where any member retires prior to deleted text begin normal retirement deleted text end age new text begin 65 new text end under a formula annuity,
the member shall be paid a retirement annuity in an amount equal to the normal annuity
provided in paragraph (b) reduced by one-quarter of one percent for each month that the
member is under deleted text begin normal retirement deleted text end age new text begin 65 new text end at the time of retirement except that for any
member who has 30 or more years of allowable service credit, the reduction shall be applied
only for each month that the member is under age 62.

(3) Any member whose attained age plus credited allowable service totals 90 years is
entitled, upon application, to a retirement annuity in an amount equal to the normal annuity
provided in paragraph (b), without any reduction by reason of early retirement.

(d) This paragraph applies to a member who has become at least 55 years old and first
became a member of the association after June 30, 1989, and to any other member who has
become at least 55 years old and whose annuity amount when calculated under this paragraph
and in conjunction with paragraph (e), is higher than it is when calculated under paragraph
(b), in conjunction with paragraph (c).

(1) For a basic member, the average salary, as defined in section 354.05, subdivision
13a, multiplied by 2.7 percent for each year of service for a basic member determines the
amount of the retirement annuity to which the basic member is entitled. The annuity of a
basic member who was a member of the former Minneapolis Teachers Retirement Fund
Association as of June 30, 2006, must be determined according to the annuity formula under
the articles of incorporation of the former Minneapolis Teachers Retirement Fund Association
in effect as of that date.

(2) For a coordinated member, the average salary, as defined in section 354.05,
subdivision 13a, multiplied by 1.7 percent for each year of service rendered before July 1,
2006, and by 1.9 percent for each year of service rendered on or after July 1, 2006, for a
member other than a member who was a member of the former Duluth Teachers Retirement
Fund Association between January 1, 2006, and June 30, 2015, and by 1.9 percent for each
year of service rendered on or after July 1, 2013, for a member of the former Duluth Teachers
Retirement Fund Association between January 1, 2013, and June 30, 2015, determines the
amount of the retirement annuity to which the coordinated member is entitled.

(e) This paragraph applies to a person who has become at least 55 years old and first
becomes a member of the association after June 30, 1989, and to any other member who
has become at least 55 years old and whose annuity is higher when calculated under
paragraph (d) in conjunction with this paragraph than when calculated under paragraph (b)
in conjunction with paragraph (c). An employee who retires under the formula annuity
before the normal retirement age is entitled to receive the normal annuity provided in
paragraph (d), reduced as described in deleted text begin clause deleted text end new text begin clauses new text end (1) deleted text begin or (2), as applicable deleted text end new text begin to (3), or an
unreduced annuity as described in clause (4) new text end .

deleted text begin (1) For a member who is at least age 62 and has at least 30 years of service, the annuity
shall be reduced by an early reduction factor of six percent for each year that the member's
age of retirement precedes the normal retirement age. The resulting reduced annuity shall
be further adjusted to take into account the increase in the monthly amount that would have
occurred had the member retired early and deferred receipt of the annuity until normal
retirement age and the annuity was augmented during the deferral period at 2.5 percent, if
the member commenced employment after June 30, 2006, or at three percent, if the member
commenced employment before July 1, 2006, compounded annually.
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end For a member who has not attained new text begin the normal retirement new text end age deleted text begin 62 deleted text end or has fewer
than deleted text begin 30 deleted text end new text begin 35 new text end years of service, the annuity shall be reduced for each year that the member's
age of retirement precedes normal retirement age by the following early reduction factors:

(i) for the period during which the member is age 55 through age 58, the factor is four
percent; and

(ii) for the period during which the member is at least age 59 but not yet normal retirement
age, the factor is seven percent.

new text begin (2) new text end The resulting annuity shall be further adjusted to take into account the increase in
the monthly amount that would have occurred had the member retired early and deferred
receipt of the annuity until normal retirement age and the annuity was augmented during
the deferral period at the applicable annual rate, compounded annually. The applicable
annual rate is the rate in effect for the month that includes the member's effective date of
retirement and shall be considered as fixed for the member for the period until the member
reaches normal retirement age. The applicable annual rate for June 2019 is 2.5 percent, if
the member commenced employment after June 30, 2006, or three percent, if the member
commenced employment before July 1, 2006, compounded annually, and decreases each
month beginning July 2019 in equal monthly increments over the five-year period that
begins July 1, 2019, and ends June 30, 2024, to zero percent effective for July 2024 and
thereafter.

new text begin (3) new text end After June 30, 2024, the reduced annuity commencing before normal retirement age
under this clause shall not take into account any augmentation.

new text begin (4) Any member who is credited with at least 35 years of allowable service is entitled,
upon application, to a retirement annuity in an amount equal to the normal annuity provided
in paragraph (d), without any reduction by reason of early retirement.
new text end

(f) No retirement annuity is payable to a former employee with a salary that exceeds 95
percent of the governor's salary unless and until the salary figures used in computing the
highest five successive years average salary under paragraph (a) have been audited by the
Teachers Retirement Association and determined by the executive director to comply with
the requirements and limitations of section 354.05, subdivisions 35 and 35a.

Sec. 6.

Minnesota Statutes 2022, section 354A.011, subdivision 15a, is amended to read:

Subd. 15a.

Normal retirement age.

"Normal retirement age" means age deleted text begin 65 for a person
who first became a member of the coordinated program of the St. Paul Teachers Retirement
Fund Association or a member of a pension fund listed in section 356.30, subdivision 3,
before July 1, 1989. For a person who first became a member of the coordinated program
of the St. Paul Teachers Retirement Fund Association after June 30, 1989, normal retirement
age means the higher of age 65 or retirement age, as defined in United States Code, title 42,
section 416(l), as amended, but not to exceed age 66 deleted text end new text begin 62 new text end . For a person who is a member of
the basic program of the St. Paul Teachers Retirement Fund Association, normal retirement
age means the age at which a teacher becomes eligible for a normal retirement annuity
computed upon meeting the age and service requirements specified in the applicable
provisions of the articles of incorporation or bylaws of the teachers retirement fund
association.

Sec. 7.

Minnesota Statutes 2022, 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 adjustment, effective as of each January 1, as follows:

(1) there shall be no postretirement adjustment on January 1, 2019, and January 1, 2020;
and

(2) the postretirement adjustment shall be one percent on January 1, 2021, and each
January 1 thereafter.

(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 deleted text begin (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 deleted text end new text begin (c) new text end .

Sec. 8.

Minnesota Statutes 2022, section 354A.31, subdivision 3, is amended to read:

Subd. 3.

Resumption of teaching after commencement of a retirement annuity.

(a)
Any person who retired and is receiving a coordinated program retirement annuity under
the provisions of sections 354A.31 to 354A.41 or any person receiving a basic program
retirement annuity under the governing sections in the articles of incorporation or bylaws
and who has resumed teaching service for the school district in which the teachers retirement
fund association exists is entitled to continue to receive retirement annuity payments, except
that all or a portion of the annuity payments must be deferred during the calendar year
immediately following the calendar year in which the person's salary from the teaching
service is in an amount greater than $46,000. The amount of the annuity deferral is one-third
the salary amount in excess of $46,000 and must be deducted from the annuity payable for
the calendar year immediately following the calendar year in which the excess amount was
earned.

(b) If the person is retired for only a fractional part of the calendar year during the initial
year of retirement, the maximum reemployment salary exempt from triggering a deferral
as specified in this subdivision must be prorated for that calendar year.

(c) After a person has reached the Social Security deleted text begin normal deleted text end retirement age new text begin as defined in
United States Code, title 41, section 416(l), as amended new text end , no deferral requirement is applicable
regardless of the amount of any compensation received for teaching service for the school
district in which the teachers retirement fund association exists.

(d) The amount of the retirement annuity deferral must be handled or disposed of as
provided in section 356.47.

(e) Notwithstanding other paragraphs of this subdivision, for any retired St. Paul Teachers
Retirement Fund Association basic or coordinated program member whose effective date
of retirement is after June 30, 2013, amounts specified as deferred under this subdivision
must instead be forfeited to the St. Paul Teachers Retirement Fund Association fund.

(f) For the purpose of this subdivision, salary from teaching service includes: (i) all
income for services performed as a consultant or independent contractor; or income resulting
from working with the school district in any capacity; and (ii) the greater of either the income
received or an amount based on the rate paid with respect to an administrative position,
consultant, or independent contractor in the school district in which the teachers retirement
fund association exists and at the same level as the position occupied by the person who
resumes teaching service.

(g) On or before February 15 of each year, each applicable employing unit shall report
to the teachers retirement fund association the amount of postretirement salary as defined
in this subdivision, earned as a teacher, consultant, or independent contractor during the
previous calendar year by each retiree of the teachers retirement fund association for teaching
service performed after retirement. The report must be in a format approved by the executive
secretary or director.

Sec. 9.

Minnesota Statutes 2022, section 354A.31, subdivision 6, is amended to read:

Subd. 6.

Reduced retirement annuity.

(a) This subdivision applies only to a person
who first became a coordinated member or a member of a pension fund listed in section
356.30, subdivision 3, before July 1, 1989, and whose annuity is higher when calculated
using the retirement annuity formula percentage in subdivision 4, paragraph (c), in
conjunction with this subdivision than when calculated under subdivision 4, paragraph (d),
in conjunction with subdivision 7.

(b) Upon retirement at an age before deleted text begin normal retirement deleted text end age new text begin 65 new text end or prior to age 62 with
at least 30 years of service credit, a vested coordinated member shall be entitled to a
retirement annuity in an amount equal to the normal retirement annuity calculated using the
retirement annuity formula percentage in subdivision 4, paragraph (c), reduced by one-quarter
of one percent for each month that the coordinated member is under deleted text begin normal retirement deleted text end age
new text begin 65 new text end if the coordinated member has less than 30 years of service credit or is under the age of
62 if the coordinated member has at least 30 years of service credit.

(c) Any coordinated member whose attained age plus credited allowable service totals
90 years is entitled, upon application, to a retirement annuity in an amount equal to the
normal retirement annuity calculated using the retirement annuity formula percentage in
subdivision 4, paragraph (c), without any reduction by reason of early retirement.

Sec. 10.

Minnesota Statutes 2022, section 354A.31, subdivision 7, is amended to read:

Subd. 7.

Reduction for early retirement.

(a) This subdivision applies to a person who
has become at least 55 years old and first becomes a coordinated member after June 30,
1989, and to any other coordinated member who has become at least 55 years old and whose
annuity is higher when calculated using the retirement annuity formula percentage in
subdivision 4, paragraph (d), in conjunction with this subdivision than when calculated
under subdivision 4, paragraph (c), in conjunction with subdivision 6. An employee who
retires under the formula annuity before the normal retirement age shall be paid the normal
annuity reduced as described in paragraph (b) deleted text begin if the person retires on or after July 1, 2019,
or in paragraph (c) if the person retires before July 1, 2019, as applicable deleted text end .

(b) A coordinated member who retires before the normal retirement age deleted text begin and on or after
July 1, 2019, deleted text end is entitled to receive a retirement annuity calculated using the retirement
annuity formula percentage in subdivision 4, paragraph (d), reduced as described in clause
(1) or (2), as applicable.

(1) If the member retires when the member is younger than new text begin the normal retirement new text end age
deleted text begin 62 deleted text end or with fewer than deleted text begin 30 deleted text end new text begin 35 new text end years of service, the annuity must be reduced by an early
reduction factor for each year that the member's age of retirement precedes normal retirement
age. The early reduction factors are four percent per year for members whose age at
retirement is at least 55 but not yet 59 and seven percent per year for members whose age
at retirement is at least 59 but not yet normal retirement age. The resulting annuity must be
further adjusted to take into account augmentation as if the employee had deferred receipt
of the annuity until normal retirement age and the annuity were augmented at the applicable
annual rate, compounded annually, from the day the annuity begins to accrue until normal
retirement age. The applicable annual rate is the rate in effect on the employee's effective
date of retirement and shall be considered as fixed for the employee. The applicable annual
rates are the following:

(i) until June 30, 2019, 2.5 percent;

(ii) a rate that changes each month, beginning July 1, 2019, through June 30, 2024, which
is determined by reducing the rate in item (i) to zero in equal monthly increments over the
five-year period; and

(iii) after June 30, 2024, zero percent.

After June 30, 2024, the reduced annuity commencing before normal retirement age
under this clause shall not take into account any augmentation.

(2) If the member retires when the member deleted text begin is at least age 62 or older and deleted text end has at least deleted text begin 30 deleted text end
new text begin 35 new text end years of new text begin allowable new text end service, the member is entitled deleted text begin to receive a retirement annuity
calculated using the retirement annuity formula percentage in subdivision 4, paragraph (d),
multiplied by the applicable early retirement factor specified for members "Age 62 or older
with 30 years of service" in the table in paragraph (c) deleted text end new text begin , upon application, to a retirement
annuity in an amount equal to the normal retirement annuity calculated using the retirement
annuity formula percentage in subdivision 4, paragraph (d), without any reduction by reason
of early retirement new text end .

deleted text begin (c) A coordinated member who retires before the normal retirement age and before July
1, 2019, is entitled to receive a retirement annuity calculated using the retirement annuity
formula percentage in subdivision 4, paragraph (d), multiplied by the applicable early
retirement factor specified below:
deleted text end

	deleted text begin Under age 62 deleted text end	deleted text begin Age 62 or older deleted text end
	deleted text begin or less than 30 years of service deleted text end	deleted text begin with 30 years of service deleted text end

deleted text begin Normal retirement age: deleted text end	deleted text begin 65 deleted text end	deleted text begin 66 deleted text end	deleted text begin 65 deleted text end	deleted text begin 66 deleted text end
deleted text begin Age at retirement deleted text end
deleted text begin 55 deleted text end	deleted text begin 0.5376 deleted text end	deleted text begin 0.4592 deleted text end
deleted text begin 56 deleted text end	deleted text begin 0.5745 deleted text end	deleted text begin 0.4992 deleted text end
deleted text begin 57 deleted text end	deleted text begin 0.6092 deleted text end	deleted text begin 0.5370 deleted text end
deleted text begin 58 deleted text end	deleted text begin 0.6419 deleted text end	deleted text begin 0.5726 deleted text end
deleted text begin 59 deleted text end	deleted text begin 0.6726 deleted text end	deleted text begin 0.6062 deleted text end
deleted text begin 60 deleted text end	deleted text begin 0.7354 deleted text end	deleted text begin 0.6726 deleted text end
deleted text begin 61 deleted text end	deleted text begin 0.7947 deleted text end	deleted text begin 0.7354 deleted text end
deleted text begin 62 deleted text end	deleted text begin 0.8507 deleted text end	deleted text begin 0.7947 deleted text end	deleted text begin 0.8831 deleted text end	deleted text begin 0.8389 deleted text end
deleted text begin 63 deleted text end	deleted text begin 0.9035 deleted text end	deleted text begin 0.8507 deleted text end	deleted text begin 0.9246 deleted text end	deleted text begin 0.8831 deleted text end
deleted text begin 64 deleted text end	deleted text begin 0.9533 deleted text end	deleted text begin 0.9035 deleted text end	deleted text begin 0.9635 deleted text end	deleted text begin 0.9246 deleted text end
deleted text begin 65 deleted text end	deleted text begin 1.0000 deleted text end	deleted text begin 0.9533 deleted text end	deleted text begin 1.0000 deleted text end	deleted text begin 0.9635 deleted text end
deleted text begin 66 deleted text end		deleted text begin 1.0000 deleted text end		deleted text begin 1.0000 deleted text end

deleted text begin For normal retirement ages between ages 65 and 66, the early retirement factors must
be determined by linear interpolation between the early retirement factors applicable for
normal retirement ages 65 and 66.
deleted text end

Sec. 11.

Minnesota Statutes 2022, section 354A.36, subdivision 3, is amended to read:

Subd. 3.

Computation of disability benefit.

The coordinated permanent disability
benefit is an amount equal to the normal coordinated retirement annuity computed under
section 354A.31, subdivision 4, based on allowable service credited to the date of disability
but without any reduction for the commencement of the benefit prior to the attainment of
normal retirement age or deleted text begin age 62 with at least 30 deleted text end new text begin 35 new text end years of new text begin allowable new text end service credit as
specified in section 354A.31, subdivision deleted text begin 6 deleted text end new text begin 7 new text end .

Sec. 12.

Minnesota Statutes 2022, section 356.415, subdivision 1d, is amended to read:

Subd. 1d.

Teachers Retirement Association annual postretirement adjustments.

(a)
Except as set forth in paragraph (d), recipients of a retirement annuity, disability benefit,
or survivor benefit from the Teachers Retirement Association are entitled to an annual
postretirement adjustment, effective as of each January 1, as follows:

(1) effective January 1, 2019, through December 31, 2023, a postretirement increase of
one percent must be applied each year to the amount of the monthly annuity or benefit of
each annuitant or benefit recipient who has been receiving an annuity or a benefit for at
least 12 full months as of the June 30 of the calendar year immediately before the adjustment;

(2) effective January 1, 2019, through December 31, 2023, for each annuitant or benefit
recipient who has been receiving an annuity or a benefit for at least one full month, but less
than 12 full months as of the June 30 of the calendar year immediately before the adjustment,
a postretirement increase of 1/12 of one percent for each month the person has been receiving
an annuity or benefit must be applied to the amount of the monthly annuity or benefit of
the annuitant or benefit recipient;

(3) effective January 1, 2024, and thereafter, a postretirement increase must be applied
each year to the amount of the monthly annuity or benefit of each annuitant or benefit
recipient who has been receiving an annuity or a benefit for at least 12 full months as of the
June 30 of the calendar year immediately before the adjustment, at the following rates:

	from January 1, 2024, through December 31, 2024	1.1 percent
	from January 1, 2025, through December 31, 2025	1.2 percent
	from January 1, 2026, through December 31, 2026	1.3 percent
	from January 1, 2027, through December 31, 2027	1.4 percent
	from January 1, 2028, and thereafter	1.5 percent

(4) effective January 1, 2024, and thereafter, for each annuitant or benefit recipient who
has been receiving an annuity or a benefit for at least one full month, but less than 12 full
months, as of the June 30 of the calendar year immediately before the adjustment, an annual
postretirement increase of 1/12 of the applicable percentage for each month that the person
has been receiving an annuity or benefit must be applied to the amount of the monthly
annuity or benefit of the annuitant or benefit recipient. The applicable percentages are the
following:

	from January 1, 2024, through December 31, 2024	1.1 percent
	from January 1, 2025, through December 31, 2025	1.2 percent
	from January 1, 2026, through December 31, 2026	1.3 percent
	from January 1, 2027, through December 31, 2027	1.4 percent
	from January 1, 2028, and thereafter	1.5 percent

(b) An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Teachers Retirement Association requesting that the increase not
be made.

(c) The retirement annuity payable to a person who retires before becoming eligible for
Social Security benefits and who has elected the optional payment as provided in section
354.35 must be treated as the sum of a period-certain retirement annuity and a life retirement
annuity for the purposes of any postretirement adjustment. The period-certain retirement
annuity plus the life retirement annuity must be the annuity amount payable until age 62,
65, or normal retirement age, as selected by the member at retirement, for an annuity amount
payable under section 354.35. A postretirement adjustment granted on the period-certain
retirement annuity must terminate when the period-certain retirement annuity terminates.

(d) Members who retire on or after July 1, 2024, are entitled to an annual postretirement
adjustment of the member's retirement annuity, effective as of each January 1, beginning
with the year following the year in which the member attains normal retirement age, as
follows:

(1) if a member has been receiving an annuity for at least 12 full months as of the June
30 of the calendar year immediately before the date of the adjustment, a postretirement
increase equal to the percentage specified in paragraph (a), clause (3), must be applied,
effective on January 1, to the amount of the member's monthly annuity;

(2) if a member has been receiving an annuity for at least one full month, but less than
12 full months as of the June 30 of the calendar year immediately before the date of
adjustment, a postretirement increase of 1/12 of the applicable percentage specified in
paragraph (a), clause (4), for each month that the member has been receiving an annuity
must be applied, effective on January 1, to the amount of the member's monthly annuity;
or

(3) if a member has been receiving an annuity for fewer than seven months as of the
January 1 of the year following the year in which the member attains normal retirement
age, a postretirement adjustment shall be applied effective as of the next January 1. The
amount of the adjustment shall be determined under clause (2).

(e) Paragraph (d) does not apply to members who retire under section 354.44, subdivision
6, paragraph (c), clause (3) deleted text begin , or who retire when the member is at least age 62 and has at
least 30 years of service under section 354.44, subdivision 6, paragraph (c), (d), (e), or (f),
as applicable deleted text end .

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 354.35, subdivision 1, new text end new text begin is repealed.
new text end

Sec. 14. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 13 are effective July 1, 2023.
new text end

ARTICLE 2

RESTORING DEFERRED AUGMENTATION FOR TEACHERS

Section 1.

Minnesota Statutes 2022, section 354.55, subdivision 11, is amended to read:

Subd. 11.

Deferred annuity; augmentation.

(a) Any person covered under section
354.44, subdivision 6, who ceases to render teaching service, may leave the person's
accumulated deductions in the fund for the purpose of receiving a deferred annuity at
retirement.

(b) The deferred retirement annuity of any former member must be augmented from the
first day of the month following the termination of active service to the effective date of
retirement.

(c) No augmentation is creditable if the deferral period is less than three months or if
deferral commenced before July 1, 1971.

(d) For persons who became covered employees before July 1, 2006, the annuity must
be augmented at the following rate or rates, compounded annually:

(1) five percent until January 1, 1981;

(2) three percent from January 1, 1981, until January 1 of the year following the year in
which the deferred annuitant attains age 55 or June 30, 2012, whichever is earlier;

(3) five percent from the date established in clause (2) until June 30, 2012;

(4) two percent from July 1, 2012, until June 30, 2019; deleted text begin and
deleted text end

(5) deleted text begin after June 30 deleted text end new text begin zero percent from July 1 new text end , 2019, deleted text begin the deferred annuity must not be
augmented. deleted text end new text begin until June 30, 2023; and
new text end

new text begin (6) two percent from July 1, 2023, and thereafter.
new text end

(e) For persons who become covered employees after June 30, 2006, the annuity must
be augmented at the following rate or rates, compounded annually:

(1) 2.5 percent until June 30, 2012;

(2) two percent from July 1, 2012, until June 30, 2019; deleted text begin and
deleted text end

(3) deleted text begin after June 30 deleted text end new text begin zero percent from July 1 new text end , 2019, deleted text begin the deferred annuity must not be
augmented. deleted text end new text begin until June 30, 2023; and
new text end

new text begin (4) two percent from July 1, 2023, and thereafter.
new text end

(f) In no case may the annuity payable under this subdivision be less than the amount
of annuity payable under section 354.44, subdivision 6.

(g) The requirements and provisions for retirement before normal retirement age contained
in section 354.44, subdivision 6, also apply to an employee fulfilling the requirements with
a combination of service as provided in section 356.311.

(h) The augmentation provided by this subdivision applies to the benefit provided in
section 354.46, subdivision 2.

(i) The augmentation provided by this subdivision does not apply to any period in which
a person is on an approved leave of absence from an employer unit covered by the provisions
of this chapter.

(j) The retirement annuity or disability benefit of, or the survivor benefit payable on
behalf of, a former teacher who terminated service before July 1, 1997, which is not first
payable until after June 30, 1997, must be increased on an actuarial equivalent basis to
reflect the change in the investment return actuarial assumption under section 356.215,
subdivision 8, from five percent to six percent under a calculation procedure and tables
adopted by the board as recommended by an approved actuary and approved by the actuary
retained under section 356.214.

Sec. 2.

Minnesota Statutes 2022, section 354A.37, subdivision 2, is amended to read:

Subd. 2.

Eligibility for deferred retirement annuity.

(a) Any coordinated member
who ceases to render teaching services for the school district in which the teachers retirement
fund association is located, with sufficient allowable service credit to meet the minimum
service requirements specified in section 354A.31, subdivision 1, shall be entitled to a
deferred annuity in lieu of a refund under subdivision 1.

(b) The deferred annuity must be augmented from the first day of the month following
the termination of active service to the effective date of retirement. There is no augmentation
if this period is less than three months.

(c) The deferred annuity commences upon application after the person on deferred status
attains at least the minimum age specified in section 354A.31, subdivision 1.

(d) For a person who became a covered employee before July 1, 2006, the annuity must
be augmented at the following rate or rates, compounded annually:

(1) three percent until January 1 of the year following the year in which the former
member attains age 55 or June 30, 2012, whichever is earlier;

(2) five percent from the January 1 next following the attainment of age 55 or until June
30, 2012;

(3) two percent from July 1, 2012, until June 30, 2019; deleted text begin and
deleted text end

(4) deleted text begin after June 30 deleted text end new text begin zero percent from July 1 new text end , 2019, deleted text begin the deferred annuity must not be
augmented. deleted text end new text begin until June 30, 2023; and
new text end

new text begin (5) two percent from July 1, 2023, and thereafter.
new text end

(e) For a person who became a covered employee after June 30, 2006, the annuity must
be augmented at the following rate or rates, compounded annually:

(1) 2.5 percent until June 30, 2012;

(2) two percent from July 1, 2012, until June 30, 2019; deleted text begin and
deleted text end

(3) deleted text begin after June 30 deleted text end new text begin zero percent from July 1 new text end , 2019, deleted text begin the deferred annuity must not be
augmented. deleted text end new text begin until June 30, 2023; and
new text end

new text begin (4) two percent from July 1, 2023, and thereafter.
new text end

(f) The augmentation provided by this subdivision applies to the benefit provided in
section 354A.35, subdivision 2. The augmentation provided by this subdivision does not
apply to any period in which a person is on an approved leave of absence from an employer
unit.

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective July 1, 2023.
new text end

ARTICLE 3

ADDITIONAL SERVICE CREDIT FOR SCHOOL EMPLOYEES

Section 1. new text begin SCHOOL EMPLOYEE SERVICE CREDIT FOR 2020-2022.
new text end

new text begin Notwithstanding any other law to the contrary, a member of the Public Employees
Retirement Association, the Minnesota State Retirement System, the Teachers Retirement
Association, or the St. Paul Teachers Retirement Fund Association must be credited with
two months of allowable service credit for every one month of service credit earned as an
employee of a Minnesota school district, charter school, or the Perpich Center for Arts
Education during the years 2020, 2021, or 2022.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 4

TEACHERS' POSTRETIREMENT ADJUSTMENT

Section 1.

Minnesota Statutes 2022, 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 adjustment, effective as of each January 1, deleted text begin as follows:(1) there
shall be no postretirement adjustment on January 1, 2019, and January 1, 2020; and(2) deleted text end the
postretirement adjustment shall be deleted text begin one percent on January 1, 2021, and each January 1
thereafter deleted text end new text begin determined by multiplying the monthly amount of the annuity or benefit by the
percentage of increase specified in clause (1), after taking into account any reduction to the
percentage of increase required under clauses (2) and (3) new text end .

new text begin (1) The percentage of increase shall be one percent unless the federal Social Security
Administration has announced a cost-of-living adjustment pursuant to United States Code,
title 42, section 415(i), in the last quarter of the preceding calendar year that is greater than
one percent. If the cost-of-living adjustment announced by the federal Social Security
Administration is greater than one percent, the percentage of increase shall equal the
cost-of-living adjustment announced by the federal Social Security Administration, but in
no event may the percentage of increase exceed three percent.
new text end

new text begin (2) If the recipient of an annuity or benefit has been receiving the annuity or benefit for
at least 12 full months as of June 30 of the calendar year immediately before the effective
date of the increase, there is no reduction in the percentage of increase.
new text end

new text begin (3) If the recipient of an annuity or benefit has been receiving the annuity or benefit for
at least one month but less than 12 full months as of June 30 of the calendar year immediately
preceding the effective date of the increase, the percentage of increase is multiplied by a
fraction, the numerator of which is the number of months the annuity or benefit was received
as of June 30 of the preceding calendar year and the denominator of which is 12.
new 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.

Sec. 2.

Minnesota Statutes 2022, section 356.415, subdivision 1d, is amended to read:

Subd. 1d.

Teachers Retirement Association annual postretirement adjustments.

(a)
Except as set forth in paragraph (d), recipients of a retirement annuity, disability benefit,
or survivor benefit from the Teachers Retirement Association are entitled to an annual
postretirement adjustment, effective as of each January 1, deleted text begin as follows: deleted text end new text begin by the percentage of
increase determined under this subdivision. The increase to the annuity or benefit shall be
determined by multiplying the monthly amount of the annuity or benefit by the percentage
of increase specified in clause (1), after taking into account any reduction to the percentage
of increase required under clauses (2) and (3).
new text end

deleted text begin (1) effective January 1, 2019, through December 31, 2023, a postretirement increase of
one percent must be applied each year to the amount of the monthly annuity or benefit of
each annuitant or benefit recipient who has been receiving an annuity or a benefit for at
least 12 full months as of the June 30 of the calendar year immediately before the adjustment;
deleted text end

deleted text begin (2) effective January 1, 2019, through December 31, 2023, for each annuitant or benefit
recipient who has been receiving an annuity or a benefit for at least one full month, but less
than 12 full months as of the June 30 of the calendar year immediately before the adjustment,
a postretirement increase of 1/12 of one percent for each month the person has been receiving
an annuity or benefit must be applied to the amount of the monthly annuity or benefit of
the annuitant or benefit recipient;
deleted text end

deleted text begin (3) effective January 1, 2024, and thereafter, a postretirement increase must be applied
each year to the amount of the monthly annuity or benefit of each annuitant or benefit
recipient who has been receiving an annuity or a benefit for at least 12 full months as of the
June 30 of the calendar year immediately before the adjustment, at the following rates:
deleted text end

	deleted text begin from January 1, 2024, through December 31, 2024 deleted text end	deleted text begin 1.1 percent deleted text end
	deleted text begin from January 1, 2025, through December 31, 2025 deleted text end	deleted text begin 1.2 percent deleted text end
	deleted text begin from January 1, 2026, through December 31, 2026 deleted text end	deleted text begin 1.3 percent deleted text end
	deleted text begin from January 1, 2027, through December 31, 2027 deleted text end	deleted text begin 1.4 percent deleted text end
	deleted text begin from January 1, 2028, and thereafter deleted text end	deleted text begin 1.5 percent deleted text end

deleted text begin (4) effective January 1, 2024, and thereafter, for each annuitant or benefit recipient who
has been receiving an annuity or a benefit for at least one full month, but less than 12 full
months, as of the June 30 of the calendar year immediately before the adjustment, an annual
postretirement increase of 1/12 of the applicable percentage for each month that the person
has been receiving an annuity or benefit must be applied to the amount of the monthly
annuity or benefit of the annuitant or benefit recipient. The applicable percentages are the
following:
deleted text end

	deleted text begin from January 1, 2024, through December 31, 2024 deleted text end	deleted text begin 1.1 percent deleted text end
	deleted text begin from January 1, 2025, through December 31, 2025 deleted text end	deleted text begin 1.2 percent deleted text end
	deleted text begin from January 1, 2026, through December 31, 2026 deleted text end	deleted text begin 1.3 percent deleted text end
	deleted text begin from January 1, 2027, through December 31, 2027 deleted text end	deleted text begin 1.4 percent deleted text end
	deleted text begin from January 1, 2028, and thereafter deleted text end	deleted text begin 1.5 percent deleted text end

new text begin (1) The percentage of increase shall be one percent unless the federal Social Security
Administration has announced a cost-of-living adjustment pursuant to United States Code,
title 42, section 415(i), in the last quarter of the preceding calendar year that is greater than
one percent. If the cost-of-living adjustment announced by the federal Social Security
Administration is greater than one percent, the percentage of increase shall equal the
cost-of-living adjustment announced by the federal Social Security Administration, but in
no event may the percentage of increase exceed three percent.
new text end

new text begin (2) If the recipient of an annuity, disability benefit, or survivor benefit has been receiving
the annuity or benefit for at least 12 full months as of June 30 of the calendar year
immediately before the effective date of the increase, there is no reduction in the percentage
of increase.
new text end

new text begin (3) If the recipient of an annuity, disability benefit, or survivor benefit has been receiving
the annuity or benefit for at least one month but less than 12 full months as of June 30 of
the calendar year immediately preceding the effective date of the increase, the percentage
of increase is multiplied by a fraction, the numerator of which is the number of months the
annuity or benefit was received as of June 30 of the preceding calendar year and the
denominator of which is 12.
new text end

(b) An increase in annuity or benefit payments under this section must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the Teachers Retirement Association requesting that the increase not
be made.

(c) The retirement annuity payable to a person who retires before becoming eligible for
Social Security benefits and who has elected the optional payment as provided in section
354.35 must be treated as the sum of a period-certain retirement annuity and a life retirement
annuity for the purposes of any postretirement adjustment. The period-certain retirement
annuity plus the life retirement annuity must be the annuity amount payable until age 62,
65, or normal retirement age, as selected by the member at retirement, for an annuity amount
payable under section 354.35. A postretirement adjustment granted on the period-certain
retirement annuity must terminate when the period-certain retirement annuity terminates.

(d) Members who retire on or after July 1, 2024, are entitled to an annual postretirement
adjustment of the member's retirement annuity, effective as of each January 1, beginning
with the year following the year in which the member attains normal retirement age, as
follows:

(1) if a member has been receiving an annuity for at least 12 full months as of the June
30 of the calendar year immediately before the date of the adjustment, a postretirement
increase equal to the percentage specified in paragraph (a), clause deleted text begin (3) deleted text end new text begin (2) new text end , must be applied,
effective on January 1, to the amount of the member's monthly annuity;

(2) if a member has been receiving an annuity for at least one full month, but less than
12 full months as of the June 30 of the calendar year immediately before the date of
adjustment, a postretirement increase of 1/12 of the applicable percentage specified in
paragraph (a), clause deleted text begin (4) deleted text end new text begin (3) new text end , for each month that the member has been receiving an annuity
must be applied, effective on January 1, to the amount of the member's monthly annuity;
or

(3) if a member has been receiving an annuity for fewer than seven months as of the
January 1 of the year following the year in which the member attains normal retirement
age, a postretirement adjustment shall be applied effective as of the next January 1. The
amount of the adjustment shall be determined under clause (2).

(e) Paragraph (d) does not apply to members who retire under section 354.44, subdivision
6, paragraph (c), clause (3), or who retire when the member is at least age 62 and has at
least 30 years of service under section 354.44, subdivision 6, paragraph (c), (d), (e), or (f),
as applicable.

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective July 1, 2023.
new text end

ARTICLE 5

TEACHER PLAN EMPLOYER CONTRIBUTION INCREASE AND FUNDING

Section 1.

Minnesota Statutes 2022, 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 0.84
percent for fiscal year 2019, 1.67 percent for fiscal year 2020, 1.88 percent for fiscal year
2021, 2.09 percent for fiscal year 2022, deleted text end 2.3 percent for fiscal year 2023 deleted text begin , deleted text end and deleted text begin 2.5 deleted text end new text begin ..... new text end percent
for fiscal year 2024 and later. The pension adjustment rate for all other districts equals deleted text begin 0.21
percent for fiscal year 2019, 0.42 percent for fiscal year 2020, 0.63 percent for fiscal year
2021, 0.84 percent for fiscal year 2022, deleted text end 1.05 percent for fiscal year 2023 deleted text begin , deleted text end and deleted text begin 1.25 deleted text end new text begin ..... new text end
percent for fiscal year 2024 and later.

(b) For fiscal year 2025 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 2024. The commissioner must prorate the pension adjustment revenue
under paragraph (a), clause (2), so as not to exceed the maximum.

(c) 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 shall be
paid to the cooperative unit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2022, section 354.42, subdivision 3, is amended to read:

Subd. 3.

Employer.

(a) The regular employer contribution to the fund by Special School
District No. 1, Minneapolis, is an amount equal to the applicable following percentage of
salary of each coordinated member and the applicable percentage of salary of each basic
member specified in paragraph (c).

The additional employer contribution to the fund by Special School District No. 1,
Minneapolis, is an amount equal to 3.64 percent of the salary of each teacher who is a
coordinated member or who is a basic member.

(b) The regular employer contribution to the fund by Independent School District No.
709, Duluth, is an amount equal to the applicable percentage of salary of each old law or
new law coordinated member specified for the coordinated program in paragraph (c).

(c) The employer contribution to the fund for every other employer is an amount equal
to the applicable following percentage of the salary of each coordinated member and the
applicable following percentage of the salary of each basic member:

	Period	Coordinated Member			Basic Member
	deleted text begin from July 1, 2014, through June 30, 2018 deleted text end		deleted text begin 7.5 percent deleted text end		deleted text begin 11.5 percent deleted text end
	deleted text begin from July 1, 2018, through June 30, 2019 deleted text end		deleted text begin 7.71 percent deleted text end		deleted text begin 11.71 percent deleted text end
	deleted text begin from July 1, 2019, through June 30, 2020 deleted text end		deleted text begin 7.92 percent deleted text end		deleted text begin 11.92 percent deleted text end
	deleted text begin from July 1, 2020, through June 30, 2021 deleted text end		deleted text begin 8.13 percent deleted text end		deleted text begin 12.13 percent deleted text end
	deleted text begin from July 1, 2021, through June 30, 2022 deleted text end		deleted text begin 8.34 percent deleted text end		deleted text begin 12.34 percent deleted text end
	from July 1, 2022, through June 30, 2023		8.55 percent		12.55 percent
	after June 30, 2023		deleted text begin 8.75 deleted text end new text begin ..... new text end percent		deleted text begin 12.75 deleted text end new text begin ..... new text end percent

(d) When an employer contribution rate changes for a fiscal year, the new contribution
rate is effective for the entire salary paid for each employer unit with the first payroll cycle
reported.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2022, section 354A.12, subdivision 2a, is amended to read:

Subd. 2a.

Employer regular and additional contributions.

(a) The employing units
shall 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 shall 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, 2016 deleted text end	deleted text begin 6.25 percent deleted text end
	deleted text begin after June 30, 2017 deleted text end	deleted text begin 6.5 percent deleted text end
	deleted text begin after June 30, 2018 deleted text end	deleted text begin 7.335 percent deleted text end
	deleted text begin after June 30, 2019 deleted text end	deleted text begin 8.17 percent deleted text end
	deleted text begin after June 30, 2020 deleted text end	deleted text begin 8.38 percent deleted text end
	deleted text begin after June 30, 2021 deleted text end	deleted text begin 8.59 percent deleted text end
	after June 30, 2022	8.8 percent
	after June 30, 2023	deleted text begin 9 deleted text end new text begin ..... new text end percent

(2) for each basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make a regular employer contribution to the respective retirement fund
in an amount according to the schedule below:

	deleted text begin after June 30, 2016 deleted text end	deleted text begin 9.75 percent of salary deleted text end
	deleted text begin after June 30, 2017 deleted text end	deleted text begin 10 percent of salary deleted text end
	deleted text begin after June 30, 2018 deleted text end	deleted text begin 10.835 percent of salary deleted text end
	deleted text begin after June 30, 2019 deleted text end	deleted text begin 11.67 percent of salary deleted text end
	deleted text begin after June 30, 2020 deleted text end	deleted text begin 11.88 percent of salary deleted text end
	deleted text begin after June 30, 2021 deleted text end	deleted text begin 12.09 percent of salary deleted text end
	after June 30, 2022	12.3 percent of salary
	after June 30, 2023	deleted text begin 12.5 deleted text end new text begin ..... new text end percent of salary

(3) for each basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall 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 shall 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 the day following final enactment.
new text end

Sec. 4. new text begin EDUCATION APPROPRIATION.
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 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 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 2024 new text end
	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2025 new text end

new text begin The 2024 appropriation includes $0 for 2023 and $....... for 2024.
new text end

new text begin The 2025 appropriation includes $....... for 2024 and $....... for 2025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2023.
new text end

APPENDIX

Repealed Minnesota Statutes: 23-00596

354.35 OPTIONAL ACCELERATED RETIREMENT ANNUITY BEFORE NORMAL RETIREMENT AGE.

Subdivision 1.

Normal retirement age definition.

For purposes of this section, "normal retirement age" means normal retirement age as defined in United States Code, title 42, section 416(l), as amended.