Minnesota Legislature Passes Teacher, Public Safety Pension Reforms

The Minnesota Legislature has passed bipartisan legislation to reform teacher and public safety employee pensions, now awaiting Governor Tim Walz's signature. The bill lowers the age for teachers to retire with reduced penalties from 62 to 60 years, provided they have 30 years of service, and decreases the early retirement penalty from 6% to 5%. It also includes a $40 million allocation to the Teachers Retirement Association and a $2.3 million fund for state patrol troopers, introducing a 3% cost of living adjustment for public safety retirees and a permanent 1.25% annual COLA increase for state patrol members. These changes aim to improve pension benefits and retirement flexibility, addressing longstanding advocacy from educators for pension reform, especially for those hired after 1989 who faced less favorable terms under the previous "Tier 2" pension system. The pension improvements for teachers will provide parity or better benefits compared to the previous Rule of 90 for those retiring at age 60 or older. Legislators highlighted this bill as a significant step toward supporting educators and public safety employees in Minnesota.