2025 Session Last amended: 2006 session

§ 127A.50 — Aid Adjustments Due to Changes in Employer Retirement Contribution Rates

Plain-Language Summary

This section addresses how changes in employer retirement contribution rates affect state aid to school districts. If state law increases the required contributions districts must make to teacher pension funds, the state may adjust district aid accordingly. Districts that reorganize or dissolve have their adjustments recalculated.

Practical Notes
When the legislature changes how much school districts must contribute to teacher pensions, this section ensures the state adjusts education aid to compensate. This prevents sudden financial shocks to districts from pension contribution changes. Districts that merge or are dissolved have their adjustments prorated.