MSBA supports the House Omnibus Pension Bill

MSBA supports the House Omnibus Pension Bill

MSBA supports the House Omnibus Pension Bill (HF 1951). This bill contains the financing for the consolidation of the Duluth Teachers’ Retirement Fund Association (DTRFA) into Teachers Retirement Association. This pension bill provides $15.3 million in annual state general fund aid beginning in FY2015.

The Senate bill is contrary to the MSBA’s position, which state that the legislature should hold school districts harmless from costs associated with underfunding of employee pensions plans. MSBA believes that TRA assets should be protected and that TRA should not subsidizing the merging DTRFA.

The Senate version of the pension bill is problematic, as it would provide less state aid than actuarially required and would begin two years after consolidation occurs.

Delaying necessary aid for the DTRFA consolidation would jeopardize TRA’s near-term financial stability. As elected school board members we are committed to TRA financial health. The Senate approach would negatively impact all school districts. We strongly urge you to call or email your legislators and ask them to support the House version of the bill.

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