Early retirement reduction factors modification for annuity commencement before retirement age

This bill modifies the retirement system for Minnesota public school teachers by adjusting how early retirement penalties are calculated and changing how school districts receive pension funding. Under the new rules, teachers who retire before their normal retirement age will face a smaller reduction in their monthly pension, while those with 30 or more years of service credit will not face any reduction at all. Additionally, the legislation sets specific rates for how much money school districts receive to help cover pension costs, with different rates for the district in St. Paul compared to other districts. These changes take effect on July 1, 2026, and directly impact teachers in the Teachers Retirement Association and the school districts that employ them.