What new members need to know
The Teachers Retirement Association (TRA) is a state agency and the administrator of Minnesota’s pension fund for public school educators and administrators. Our work is governed by state statutes and federal tax law, overseen by an eight-member board of trustees, and led by an appointed executive director.
TRA is a defined benefit pension plan, which differs from a 403(b) or 401(k) because you receive a predictable retirement benefit for your lifetime, not an account balance that you might outlive. The TRA pension pays a modest but consistent income stream for the entirety of each member’s retirement. Disability and optional survivor benefits provide additional peace of mind and financial security to the people who make our public schools work.
With TRA:
- Savings are automatic. A percentage is deducted from every paycheck for your retirement.
- Contributions are pretax. This reduces your taxable income.
- Benefit payments are reliable. A consistent benefit will replace part of your income in retirement, along with Social Security and personal savings.
Contributions
TRA is funded through a combination of employer and employee contributions that are professionally managed by the Minnesota State Board of Investment.
TRA contribution rates are set in Minnesota state law and are subject to change. An additional employer contribution of 3.64% is required for the Minneapolis school district.
Current and historical plan rates
| Effective Dates | Employer Contribution Rate | Employee Contribution Rate |
|---|---|---|
| 7/1/2020 through 6/30/2021 | 8.13% | 7.50% |
| 7/1/2021 through 6/30/2022 | 8.34% | 7.50% |
| 7/1/2022 through 6/30/2023 | 8.55% | 7.50% |
| 7/1/2023 through 6/30/2025 | 8.75% | 7.75% |
| 7/1/2025 and after | 9.81% | 8.00% |
Vesting
You are eligible, or “vested,” to receive a lifetime monthly retirement benefit after you have earned three years of service credit.
Vested members can apply for a reduced retirement benefit as early as age 55, and an unreduced retirement benefit at their normal retirement age, which for most members is age 65.
Service credit
Service credit affects eligibility for benefits and an individual's benefit amount. Paid sick leave, vacation days, and all required attendance days and hours (such as workshops) count toward service credit. TRA allows no more than one year of service during any fiscal year. Service credit for part-time teachers, extracurricular pay, retro pay, and summer pay is prorated.
Key steps for TRA members:
- Name your beneficiary or beneficiaries so TRA knows who should receive your contributions in the event of your death. Find beneficiary designation forms in myTRA.
- Keep your contact information up-to-date. This allows TRA to properly administer your benefit. If your information changes, call TRA or make an update using myTRA.
- Visit TRA’s events calendar to view upcoming educational opportunities, or consider scheduling a member counseling appointment if you are nearing retirement.
Learn about benefits and options
Disability
Available to those with at least three years of service who become disabled.
Leaves of absence
There are several leave types, including extended, family, legislative, medical, military, parental, and sabbatical. You may purchase service credit for most leave types.
Part-time teaching
If you’re currently working full time (1.0 FTE) but plan to work part-time, you may be eligible to purchase full-time service credit toward your pension if you meet eligibility requirements.
Refunds
If your employment ends with your TRA-covered employer, you may opt for a refund of your contributions plus 3% interest compounded annually. Partial refunds are not permitted, and the employer’s contributions remain with TRA.
Survivor benefits
Certain benefits are available to your survivor(s) if you die before retiring with the TRA pension plan.
Member handbook
Read the TRA Member Handbook of Benefits and Services for detailed plan information.
