Gov. Walz signs bill boosting pensions for Minnesota teachers, police officers, and firefighters

(ABC 6 News) – On Friday, Governor Tim Walz signed multiple budget and policy bills passed in the 2025 session, including a bill that will boost pensions for Minnesota teachers, police officers, and firefighters.

“Minnesota is a state that values the hard work and contributions of public servants like our teachers, police officers, and firefighters. The bipartisan work that went into this bill will ensure these middle-class families are treated in retirement with the dignity and respect that they’ve earned,” said Governor Walz via a press release. “This bill is fulfilling our commitment to ensure those who have committed their life to public service can retire with economic security.”

The bill lowers teacher retirement age from 62 to 60 while lowering the reduction percentage from 6% to 5% for teachers with 30 years of service.

It also adjusts the three-year cost-of-living adjustment delay and provides a one-time 3% cost of living increase in 2026 and 1% annually thereafter for PERA police and firefighter members.

A 1.25% annual cost of living increase will be applied for state patrol retirees.