The Minnesota Senate on Sunday approved a bipartisan Pensions package that addresses various needs cited by teachers and law enforcement. The bill spends $80 million in FY26-27 and an additional $80 million in FY28-29. With this funding, the bill increases benefits for law enforcement officers and creates a working group to determine future additional changes.
“This bill is good for teachers, good for law enforcement, and good for Minnesota workers,” Senator Carla Nelson (R-Rochester), who serves on the pensions commission, said. “As a former educator and daughter of an educator, I know firsthand how important it is to keep our promises to those who serve. This isn’t a perfect bill, but it’s a meaningful step forward at a time when resources are tight. I’ll keep working to make sure duty disability benefits and teacher pensions reflect the respect these professionals have earned through their service.”
The main highlights of the bill include the following:
- Cost of living adjustments (COLA) to the State Patrol Plan
- One-time COLA increases of 3% for Public Employees Retirement Association- Police and Fire Plan
- Reducing the penalty for 60 and 61-year-old Tier II teachers who retire early
- Modifications to Duty Disability, supported by Minnesota Counties.
Missing from this bill is early retirement changes for Probation Officers. In lieu of an immediate change, this bill establishes a working group to formulate a workable solution to address their concerns.
Senator Nelson supported multiple amendments to put the bill in a better state. All were defeated on party-line votes:
- Fully funding benefit improvements for teachers, providing $20 million in additional direct state aid into TRA.
- Removing the increase in pension COLAs for legislators, and putting that money towards teacher pensions
- Capping the salary of the Executive Director of the TRA to that of the Governor’s pay, freeing up that money to go towards teacher pension funds