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Caleb Jungling, 651.296.5529 (desk)
Caleb.Jungling@house.mn.gov
News Release
Suburban Solutions Caucus Proposes Two New Pension Options to Support Educator Retention, our Schools, and Students
St. Paul, MN — The Suburban Solutions Caucus (SSC) presented two new teacher pension reform proposals last night during a hearing before the Legislative Commission on Pensions and Retirement. The bills, authored by members of the caucus, were laid over for possible inclusion in a larger omnibus pension bill and represent a targeted, fiscally responsible effort to address educator recruitment and retention across Minnesota.
The proposed pension changes—House File 2318 and House File 2329—would be funded by reallocating Q-Comp and savings from reforms proposed in House File 2201, which aims to make commonsense adjustments to the state’s universal school meals program. Rather than continuing to provide taxpayer-funded lunches for high-income families, HF 2201 would preserve free breakfast for all students while asking families of four earning more than $156,000 to cover the cost of their own children's lunches. This change would free up approximately $112 million annually to be redirected toward pensions and flexible funding for classrooms.
“Public pensions are a long-lasting commitment that require us to think beyond the typical two- and four-year political cycle, said Rep. Andrew Myers (R-Tonka Bay), Co-Chair of the SSC. "Our caucus is working to shift the mindset in St. Paul and make thoughtful, sustainable improvements that respect our educators and support our schools and students.”
The new pension proposals are as follows:
House File 2318: 62/30 Unreduced Pension
This option provides teachers with an unreduced pension at age 62 with 30 years of service. It would be funded by a modest 1% increase in the employer contribution and is estimated to cost just 30% of the more expensive 60/30 proposal in House File 1582.
House File 2329: Expanded Special Early Retirement
This bill offers a more affordable path for educators who need to retire at age 60, expanding the current Special Early Retirement provision for teachers with 30 years of service. It includes a three-year cost-of-living adjustment (COLA) delay, aligning with the current normal retirement age policy to contain costs.
"The Suburban Solutions Caucus and I are committed to working on solutions that improve academic outcomes—including retaining and recruiting our current and future educators,” said Myers. Everyone knows we missed a huge opportunity to act on pensions during the $18 billion surplus. These bills aim to take a more pragmatic approach with the funding we have now.”
On Monday, the SSC held a press conference on these proposals before the bills’ hearings, attended by a large group of teachers and administrators. A video of the press conference can be found here.
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