Beginning January 1, 2027, retiring TRA members must have a 90-day break in service before returning to work in TRA-covered positions. The TRA Board of Trustees passed this policy update at its September 2025 meeting. The change brings TRA into alignment with other public pension funds as well as federal tax law.
90-day break in service determination
TRA determines the 90-day break in service requirement using the 90 calendar days immediately following a member’s last day of employment. The last day of employment is the last day a member worked and earned salary in a TRA-covered position, not the date the member received the salary.
For example:
- LAST DAY: A member retires with a last day of employment of January 1, 2027.
- DAY 1: January 2, 2027, is day 1 of the 90-day break in service.
- DAY 90: April 1, 2027, is day 90 of the 90-day break in service.
- DAY 91: April 2, 2027, is the earliest date the member can resume working in a TRA-covered position.
Violations
If a member earns salary in a TRA-covered position during the 90 calendar days immediately following the reported last day of employment, TRA will take the following actions:
- Recalculate the 90-day break in service period based on the member’s new last day of employment.
- Stop the payment of the retirement benefit and adjust the benefit to reflect the updated effective date.
- Invoice the member for the full repayment of any benefit payments received or adjust the member’s future benefit payment(s) to recoup the overpaid funds.
VIOLATION EXAMPLE:
- A member retires with a last day of employment of January 1, 2027, and does not have a formal Return-to-Work Agreement or Annuitant Employment Program Agreement in place.
- January 2, 2027, is day 1 of the 90-day break in service.
- April 1, 2027, is day 90 of the 90-day break in service.
- April 2, 2027, is day 91 of the 90-day break in service and the earliest date the member can resume working in a TRA-covered position.
- The member works one day on January 5, 2027, and earns salary.
- TRA receives the payroll for this new salary on February 15, 2027, after the member receives a benefit payment.
- TRA revises the member’s last day of employment to January 5, 2027, pauses future pension payments, and notifies the member. The member must have a 90-day break in service.
- January 6, 2027, is day 1 of the new 90-day break in service.
- April 6, 2027, is day 91 of the 90-day break in service and the date the member may resume working in a TRA-covered position.
- TRA invoices the member for the benefit payment(s) the member was ineligible to receive. The member must repay the amount.
Exceptions for reemployment
Members seeking to return to a TRA-covered employer within the 90 calendar days immediately following their last day of employment may do so under two exceptions.
If you are a PreK–12 employee, the 90-day break in service requirement does not apply when you are at least 59 ½ years old and have a formal Return-to-Work Agreement with your TRA-covered employer. You must submit this Return-to-Work Agreement with your Retirement Annuity Application.
Alternatively, if you are a Minnesota State employee, the 90-day break in service requirement does not apply when you are at least 59 ½ years old and a TRA-covered employer approves you for the Annuitant Employment Program. You must submit the Annuitant Employment Program Agreement with your Retirement Annuity Application.
If you have a reemployment agreement in place at the time of your retirement, you must not work in a TRA-covered position for at least one day immediately following the reported last day of employment or benefit effective date. Under most circumstances, the day immediately following the last day of employment is also the benefit effective date.
FAQs – 90-day break in service
State law and the U.S. Internal Revenue Code govern when a TRA retiree can resume working in a TRA-covered position. Complying with these rules helps ensure that a retiree returning to work in a TRA-covered position does not result in negative tax consequences for the retiree or TRA. TRA ensures compliance by requiring retirees to satisfy a bona fide break in service, i.e. a 90-day break in service, before resuming work in a TRA-covered position.
It depends on your last day of employment.
Scenario 1: If your last day of employment was prior to January 1, 2027, and you are receiving a TRA retirement benefit, the 90-day break in service requirement does not pertain to you.
Scenario 2: If your last day of employment was prior to January 1, 2027, but you are not yet receiving a TRA retirement benefit, returning to work in a TRA-covered position would establish a new last day of employment and reset your required 90-day break in service period.
Yes, the 90-day break in service requirement only applies to TRA-covered employment.
TRA determines the 90-day break in service requirement using the 90 calendar days immediately following a member’s last day of employment.
For example:
- A member retires with a last day of employment of January 1, 2027.
- January 2, 2027, is day 1 of the 90-day break in service.
- April 1, 2027, is day 90 of the 90-day break in service.
- April 2, 2027, is the earliest date the member can resume working in a TRA-covered position.
The last day of employment is the last day a member worked and earned salary in a TRA-covered position, not the date the member received the salary.
TRA has two options for resuming work in a TRA-covered position in fewer than 90-days following retirement.
Option 1: PreK–12 employees may enter into formal Return-to-Work Agreements with TRA-covered employers. These TRA members must be at least 59 ½ years old and submit a Return-to-Work Agreement with their Retirement Annuity Applications.
Option 2: TRA-covered employers may approve Minnesota State employees for the Annuitant Employment Program. These Minnesota State employees must be at least 59 ½ years old and submit an Annuitant Employment Program Agreement with their Retirement Annuity Applications.
When one of these reemployment agreements is in place at the time of retirement, the retiree must not work in a TRA-covered position for at least one day immediately following the reported last day of employment or benefit effective date. Under most circumstances, the day immediately following the last day of employment is also the benefit effective date.
You must submit the Return-to-Work Agreement or the Annuitant Employment Program Agreement with your retirement application.
The TRA member is responsible for submitting a Return-to-Work or Annuitant Employment Program agreement with the TRA retirement application.
Call TRA at 651-296-2409 or 800-657-3669.
For PreK–12 employees, resuming work to only coach sports is not considered TRA-covered employment. This does not require a Return-to-Work Agreement.
Alternatively, for Minnesota State employees, resuming work to only coach sports is classified as a Minnesota State faculty position and considered TRA-covered employment. Without an Annuitant Employment Program agreement in place, returning to work to coach would violate the 90-day break in service requirement.
Call TRA at 651-296-2409 or 800-657-3669.
The 90-day break in service period will start one day following your most recent last day of employment.
If you resume work with a TRA-covered employer as a substitute teacher within the 90 days following your last day of employment and do not have a formal Return-to-Work or Annuitant Employment Program agreement in place, this violates the 90-day break in service requirement.
If you plan to resume work in one role or both positions, you must submit the relevant Return-to-Work or Annuitant Employment Program agreement(s).
Yes, a leave of absence maintains the employer/employee relationship. The last day of your leave of absence is also your last day of employment.