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Saint Paul teachers press Legislature for pension parity, sponsors say funding unresolved
Summary
Saint Paul educators and the Saint Paul Teachers Retirement Fund Association urged the Legislative Commission on Pensions and Retirement to approve changes that would reduce employee contributions and raise retirees' COLA; staff estimate the proposal costs about $12 million per year for 15 years and sponsors said funding must be negotiated before inclusion in an omnibus pension bill.
Saint Paul teachers testified to the Legislative Commission on Pensions and Retirement on April 21, urging lawmakers to approve legislation they say would correct a long-standing disparity between Saint Paul teachers and other districts.
The bill (Senate File 4860 / House File 4812) would reduce employee contributions for coordinated members from 9% to 8% after June 30, 2026, and raise the cost-of-living adjustment for retirees from a fixed 1% to a fixed 1.5% beginning Jan. 1, 2027. Ms. Wilson, commission staff, told members the bill’s cost is “just over 12 million per year for a 15 year period.”
Why it matters: Teachers who addressed the commission said the changes would have immediate effects on household budgets and retention. "I'm Hannah Geimer. I am a second grade teacher in Saint Paul for 20 years," Geimer said, recounting childcare costs and emergency expenses and asking lawmakers to support the measure. Eric Erickson, who identified himself as a 30-year Saint Paul social studies teacher, argued the current arrangement is unequal: "We are paying more into our pension, and will receive less in retirement," he said.
What happened at the hearing: Multiple teachers described personal financial strain — citing childcare costs and high out-of-pocket expenses — and framed the bill as a recruitment and retention measure for Saint Paul schools. Mr. Tan, representing the Saint Paul Teachers Retirement Fund Association, summarized the request as parity-seeking: an 8% employee contribution and a 1.5% COLA funded by a 2.7% state-funded employer contribution increase. He told the commission the campaign is grassroots and that supporting teachers statewide depends in part on reaching a funding agreement.
Members pressed staff and sponsors on the fund’s history and solvency. Senator Nelson asked about the legacy underfunding (the so-called “big red box”), and staff and Senator Pappas explained there were periods when employer contributions were not collected and that supplemental amortization payments (begun in 2018) are intended to address that liability; projection estimates show the legacy amortization paying down through 2039–2040. Sponsors and members discussed figures while noting that funding must be agreed between House and Senate leadership; sponsors cited roughly $3.4 million for the employee contribution change and about $7.7 million for the COLA increase as numbers under discussion.
Outcome and next steps: The commission laid the bill over to allow sponsors time to secure funding and indicated an intention to try to include the measure in a pension omnibus next week if financing can be found. No final vote on the bill’s merits was taken at this meeting.
Provenance: The commission heard the staff memo and teacher testimony starting with the bill introduction and staff summary and continued through questions and the lay-over decision. Evidence spans: staff summary and cost (staff memo) and multiple teacher testimonies were presented to the commission (see transcript segments beginning SEG 035 through SEG 769).
