The Legislative Commission on Pensions and Retirement leaders, Chair Sen. Julie Rosen, R-Vernon Center, and Rep. Tim O’Driscoll, R-Sartell, posted a draft of their pension bill this weekend. The changes they are proposing to TRA are devastating for educators, both active and retired, and are vastly different from the changes proposed by TRA and Governor Mark Dayton.
- Increases the employee contribution by .75 percent (from 7.5 percent to 8.25 percent) phased in over four years, beginning July 1.
- Increases the employer contribution by just .75 percent (from 7.5 percent to 8.25 percent) phased in over four years, beginning July 1, with no funding for it.
- Permanently reduces the TRA cost-of-living adjustment from 2 percent to 1 percent, effective Jan. 1, 2018.
- Reduces early retirement benefits by eliminating the current augmentation used to calculate benefits. This would reduce early retirement benefit levels by approximately 18 percent for members retiring at 60 and 11 percent for members retiring at 62.
- Based on a preliminary analysis by TRA, approximately 66 percent of the proposed package would be borne by active teachers, 21 percent by current retirees and just 13 percent by employers
The Legislative Commission on Pensions and Retirement is meeting at 5:30 PM Monday, May 8 in Room 123 of the State Capitol to take public testimony on the bill.
PLEASE CALL LCPR commission members and tell them to oppose this bill in favor of the TRA proposal, which is a fair and balanced approach that includes:
- An increase in the employer contribution from 7.5 percent to 9.5 percent phased in over the next four years. The proposal includes additional funding from the state to pay for those increases for the first two years.
- A reduction in the cost-of-living adjustment from 2 percent to 1 percent for five years and then 1.5 percent thereafter.
- We also invite you to attend Monday’s hearing as a show of support and to let commission members know you are watching and paying attention to the decisions they make.
If you have any questions, please email Louise Sundin at email@example.com