Teachers Retirement Association provisions modifications

A bill for an act

relating to retirement; Teachers Retirement Association; clarifying the definition

of termination of teaching service; lowering the age at which a teacher can receive

a retirement annuity from the Teachers Retirement Association and enter into a

return-to-work agreement; extending the suspension of earnings limitation for

retired teachers who return to teaching; amending Minnesota Statutes 2024, sections

354.05, subdivision 37; 354.444, subdivisions 2, 3; Laws 2022, chapter 65, article

3, section 1, subdivisions 2, as amended, 3, as amended.

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

Section 1.

Minnesota Statutes 2024, section 354.05, subdivision 37, is amended to read:

Subd. 37.

Termination of teaching service.

"Termination of teaching service" means

the withdrawal of a member from active teaching service by resignation or the termination

of the member's teaching contract by the employer. A member is not considered to have

terminated teaching service, if before the age of
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62
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59-1/2
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, and before the effective date of

the termination or retirement, the member has entered into a contract to resume teaching

service with an employing unit covered by the provisions of this chapter. A contract to

return to work after retirement for an active member who has attained age
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62
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59-1/2
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must

comply with the provisions of section
354.444
.

Sec. 2.

Minnesota Statutes 2024, section 354.444, subdivision 2, is amended to read:

Subd. 2.

Eligibility.

An eligible person is a person who:

(1) is a teacher as defined by section
354.05, subdivision 2
, who is at least age
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62
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59-1/2
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;

(2) enters into a written agreement with the employing unit to return to work; and

(3) retires under the provisions of section
354.44
and begins to draw an annuity from

the Teachers Retirement Association.

Sec. 3.

Minnesota Statutes 2024, section 354.444, subdivision 3, is amended to read:

Subd. 3.

Work agreement.

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(a) A member who is at least age 59-1/2 may, before the

effective date of retirement, enter into a written agreement to return to work with an

employing unit covered by the provisions of this chapter.

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(b)
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Participation, the amount of time worked, and the duration of participation under

this section must be mutually agreed upon by the employing unit and the employee. The

employing unit may require up to a one-year notice of intent to participate in the program

as a condition of participation. The employing unit shall determine the time of year the

employee shall work. Unless otherwise specified in this section, the employing unit may

not require a person to waive any rights under a collective bargaining agreement as a

condition of participation under this section.

Sec. 4.

Laws 2022, chapter 65, article 3, section 1, subdivision 2, as amended by Laws

2024, chapter 102, article 1, section 8, is amended to read:

Subd. 2.

Temporary suspension of earnings limitation for teachers covered by TRA

and SPTRFA.

(a) Notwithstanding Minnesota Statutes, section
354.44, subdivision 5
, no

portion of a reemployed teacher's annuity paid under Minnesota Statutes, chapter 354, shall

be deferred regardless of the amount of the salary earned from the teaching service during

the preceding fiscal year. This paragraph applies only to salary earned during fiscal years
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2022, 2023, 2024,
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2025, 2026,
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and
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2027
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, 2028, 2029, and 2030
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and annuity payments made

during calendar years
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2023, 2024, 2025,
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2026, 2027,
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and
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2028
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, 2029, 2030, and 2031
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.

(b) Notwithstanding Minnesota Statutes, section
354A.31, subdivision 3
, no portion of

a reemployed teacher's annuity paid under Minnesota Statutes, chapter 354A, shall be

deferred or forfeited regardless of the amount of the salary earned from the teaching service

during the preceding calendar year. This paragraph applies only to salary earned during

calendar years
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2022, 2023, 2024,
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2025, 2026,
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and
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2027
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, 2028, 2029, and 2030
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and annuity

payments made during calendar years
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2023, 2024, 2025,
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2026, 2027,
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and
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2028
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, 2029, 2030,

and 2031
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.

Sec. 5.

Laws 2022, chapter 65, article 3, section 1, subdivision 3, as amended by Laws

2024, chapter 102, article 1, section 9, is amended to read:

Subd. 3.

Expiration date.

This section expires effective January 1,
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2029
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2032
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.

Sec. 6.
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EFFECTIVE DATE.
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Sections 1 to 5 are effective the day following final enactment.

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