Legislative session summary
On May 19, 2026, the Minnesota governor signed House File 4074, the 2026 Omnibus Pension and Retirement Bill (omnibus pension bill), into law. The omnibus pension bill made several changes that affect TRA members and employers.
Employer contributions on reemployed annuitant earnings
Starting in July 2026, school districts, charter schools, Minnesota State, and any other TRA-covered employer will be required to pay the regular employer contribution rate of 9.81% on salary earned by reemployed annuitants working in TRA-eligible positions. A reemployed annuitant is an individual who is retired, is receiving a TRA annuity, and has returned to work for a TRA-covered employer.
This new contribution requirement only applies to the employer. Reemployed annuitants will not pay any contribution amount to TRA, and therefore will not earn additional service credit or have their benefits recalculated as a result of post-retirement work.
Eligibility age for return-to-work agreements
A return-to-work agreement is a formal arrangement between a TRA member and their TRA-covered employer that allows the member to retire, begin receiving a TRA annuity, and immediately reenter employment with that employer. The omnibus pension bill lowered the required age a member must be to enter into a return-to-work agreement from age 62 to age 59 ½.
Note: TRA members employed by Minnesota State have a different post-retirement employment option. The omnibus pension bill did not impact or change this option.
Disability application change
TRA members applying for new or continuing disability benefits must submit two medical reports documenting their condition. A licensed physician must complete an exam, provide documentation, and sign at least one of the reports. A licensed advanced practice registered nurse (APRN), chiropractor, physician, or—with respect to a mental health condition—a psychologist are approved medical providers permitted to complete an exam, provide documentation, and sign the second report. Effective May 20, 2026, licensed physician assistants (PAs) are additional approved medical providers who can fulfill the non-physician medical report requirement.
Earnings limitation suspension extended through 2030
The omnibus pension bill extended the suspension of the $46,000 earnings limitation for retirees who return to work in PreK–12 TRA-covered positions through June 30, 2030. The suspension initially was implemented in 2022 and extended in 2024.
Note: The temporary suspension of the earnings limitation does not apply to retirees returning to Minnesota State positions. Both the $62,000 earnings limitation for members approved for the Annuitant Employment Program and the general $46,000 earnings limitation, whichever is applicable, will continue to be enforced for retirees returning to Minnesota State positions.
Eligible salary clarification
Statute now clarifies that benefit payments from the Minnesota Paid Leave (MPL) program are not considered salary for pension calculation purposes. This is similar to how payments from other outside sources, such as worker’s compensation and short-term disability insurance, are treated. Individuals contemplating a leave of absence should refer to TRA’s Life Events page for more information.
Interest assumption
The assumption used to calculate joint-and-survivor benefits was moved out of statute and into an appendix overseen by the Legislative Commission on Pensions and Retirement (LCPR). This enables each pension system to use a custom assumption rate recommended by its actuary, rather than a standard rate set in law. This assumption must be approved by the LCPR.