The Minnesota Senate passed the 2025 omnibus pension bill, Senate File 2884, on May 18, approving improvements to benefits for teachers, police, firefighters, state patrol and other public employees by a 55-12 vote.

The bill’s author, Senator Frentz, opened floor debate saying the package represents an $80,000,000 base funding target per biennium and “is a big win” for teachers, police, firefighters and paramedics. He listed a series of benefit changes including earlier cost-of-living adjustments for police and fire retirees, a new teacher “career rule” and duty-disability modifications for public-safety employees.

Supporters said the bill gives teachers new retirement options and adds targeted cost-of-living improvements for public-safety retirees. “Teachers will get a career rule,” Senator Gustafson said on the floor, describing the bill’s educator provisions as a long-sought change. The bill also directs a $17,700,000 annual cost for the police and fire cost-of-living provisions and about $2,300,000 per year for state patrol increases; Frentz said the public-safety components total roughly $20,000,000 per year in general-fund cost.

Lawmakers pressing for larger or differently targeted funding lost several roll-call amendment votes. Senator Rasmussen’s amendment (A51) to add $20,000,000 per year to fully fund teacher benefit changes failed on a 33-34 roll call; Rasmussen argued the amendment would prevent creation of an unfunded liability, saying “a yes vote gives $20,000,000 more per year to fund teacher benefits.” Senator Rasmussen also offered amendments to remove a legislative-COLA increase and to cap the Teachers Retirement Association executive director’s salary; both (A50 and A52) were defeated on similar 33-34 tallies. A proposed change to the duty-disability language (A53) was offered, discussed and then withdrawn.

Opponents and some supporters warned the bill leaves unresolved funding questions. Senator Rasmussen and others warned parts of the teacher package were not fully paid for; Rasmussen said the bill’s benefits were “about $40,000,000 per year, but there’s only $20,000,000 per year in funding.” Senator Howe and others raised concerns about compressed timing that limited vetting of amendments and said the duty-disability language could use more work. “I don’t think this duty disability bill has everything it needs,” Howe said.

Proponents argued the bill represents bipartisan work by the Legislative Commission on Pensions and Retirement and improves retirement security now while committing to additional work on remaining issues. Frentz thanked commission staff and said the TRA board agreed to absorb additional costs to help enable the career rule. Senator Duckworth criticized members for not having fixed teacher pensions during prior surplus years: “I can’t get over the fact that we didn’t fix it when we had $19,000,000,000 to do so,” she said.

The full Senate approved the bill on third reading by voice and roll call. The secretary closed the final roll call with 55 ayes and 12 noes and the title was agreed to. The bill will proceed to the House as the next step in the process.

Among provisions noted on the floor: an earlier cost-of-living adjustment for some police and fire retirees, a 2026 one-time COLA payment mechanism described in debate, a new 60/30 “career rule” option for teachers, an enhanced Hurley retirement adjustment reducing certain penalties, changes to duty-disability benefits that extend wage replacement and health coverage terms for some public-safety employees, and work groups or studies for firefighter relief associations and probation officers. Several senators urged continued work on duty-disability and related implementation details in coming months.

Votes at a glance
- Senate File 2884 (pension omnibus) — Final passage: approved, 55 ayes, 12 noes.
- A51 (Rasmussen) — Add $20,000,000/year for teacher funding: failed, 33 ayes, 34 noes.
- A50 (Rasmussen) — Remove legislative COLA to reallocate funds: failed, 33 ayes, 34 noes.
- A52 (Rasmussen) — Cap TRA executive director salary at governor’s salary: failed, 33 ayes, 34 noes.
- A53 (Howell) — Duty-disability distinction amendment: withdrawn.

The Senate debate repeatedly distinguished formal action (the final passage and recorded roll calls) from ongoing discussion and directions for future work; senators on both sides pledged further work in commission and committee lanes to resolve remaining technical and funding questions.

Ending: Sponsors said they expect further technical work in commission and committee settings on duty-disability, firefighter relief association provisions and teacher-funding mechanics before final implementation is complete. The bill’s passage on May 18 moves the omnibus to the House for its next steps.