Teachers Retirement Association; early retirement reduction factors for annuity commencement before normal retirement age modified.

This bill modifies how early retirement reductions are calculated for teachers in Minnesota's Teachers Retirement Association, affecting educators who retire before reaching normal retirement age. It changes the reduction rate from one-quarter of one percent per month to a more gradual decrease, while also maintaining a special provision for members with 30 or more years of service credit who can retire without age-based reductions. The legislation also adjusts pension adjustment revenue for school districts, setting specific contribution rates for different years and allowing cooperative units to qualify for funding like regular districts. These changes take effect on July 1, 2026, and aim to provide more predictable retirement benefits for teachers while managing state pension costs.