Thanks to recent legislation passed by the state Senate, Minnesota educators and public servants are poised for significant retirement benefit improvements. On Sunday, May 18, the Minnesota Senate voted in favor of a pensions bill (SF 2884) that aims to enhance retirement benefits for a range of public employees, including teachers, firefighters, paramedics, and State Patrol officers. The bill gained widespread support, passing with a 55-12 vote, reflecting bipartisan consensus on this critical issue, according to the Minnesota Senate DFL.
In a move that spells good news for many who have devoted their careers to public service, the bill, which passed 133-1 in the Minnesota House on Monday, now awaits Governor Walz's signature. Its provisions signal a tangible shift toward bolstering the retirement security for those who serve in our schools and on our streets. Senator Erin Maye Quade (DFL – Apple Valley) played a key role in the legislation, introducing a provision to increase the maximum lump-sum pension amounts for firefighters for each year of credited service. According to a statement from Maye Quade made by Senate DFL, "Minnesota’s educators and public servants dedicate years of their lives to improving the quality of life for communities across the state. This legislation makes long-awaited improvements to their retirement security and reflects our commitment to the people who keep our state moving forward."
The bill's key highlights include a teacher retirement reform that will allow public school teachers to retire earlier with reduced penalties, specifically at age 60 after 30 years of service, known as a "career rule." Additionally, improvements to cost-of-living adjustments (COLAs) are part of the package, aiming to preserve the buying power of pensions against the relentless tide of inflation. Under the new provisions, PERA Police and Fire personnel will receive a one-time, compounded three percent COLA, and the benefit kicks in a year earlier than the current law stipulates, where State Patrol Troopers are set to benefit from a permanent 1.25 percent annual COLA, the Senate DFL noted.
