Planning for long-term goals
If you are age 55 or older and vested in the Teachers Retirement Association (TRA), you may begin collecting your retirement benefit.
Retiring before your normal retirement age permanently reduces your monthly benefit. Because you receive payments for a longer period, TRA applies early retirement reduction factors to your benefit calculation.
If you retire at age 60 or older with at least 30 years of service credit and qualify under the 60-and-30 early retirement provision, your reduction may be lower. Review your options carefully and meet with a TRA counselor to determine whether early retirement aligns with your financial goals.
Background: Changes to early retirement law
Beginning June 30, 2025, eligible members who are age 60 or older with at least 30 years of service credit may qualify for more favorable reduction factors under the Level formula.
Eligibility for the 60-and-30 provision
To qualify, you must:
- Retire at age 60 or older on or after June 30, 2025
- Have been active in a Minnesota public retirement system on May 23, 2025 (the law’s date of enactment)
- Have at least 30 years of allowable service credit with TRA and/or one or more of the following Minnesota public retirement systems:
- Minnesota State Retirement System (MSRS)
- Public Employees Retirement Association (PERA)
- St. Paul Teachers Retirement Fund Association (SPTRFA)
Early retirement reduction factors
If you qualify for 60-and-30
Reduction factors under the Level formula are approximately:
- 2.5%–3.0% per year from your age at retirement relative to age 65
If you do not qualify for 60-and-30
Reduction factors under the Level formula from your age at retirement to your normal retirement age are:
- 4% per year from age 55 through 58
- 7% per year from age 59 through your normal retirement age
FAQs – Early retirement
Yes. Non-overlapping combined service with other Minnesota public retirement systems may count toward the required 30 years of service credit, provided your effective retirement date with each plan is within a one-year period.
However, the 60-and-30 early retirement provision applies only to your TRA benefit calculation.
No. If you have 30 years of service credit, you may stop working and defer payment of your retirement benefit until age 60 to qualify for the 60-and-30 provision.
No. You must meet both the age 60 and 30 years of service credit requirements to qualify for the 60-and-30 provision.
Service credit is cumulative and affects your final benefit calculation. Active members accrue service credit. Reemployed retirees do not accrue additional service credit.
Yes. Effective June 30, 2025, all new TRA retirees are subject to a delay in the postretirement benefit increase until January 1 following the year in which they reach normal retirement age.
No. The 60-and-30 provision applies only to the TRA benefit calculation.
No. Under the former 62-and-30 provision, reduction factors under the Level formula were approximately 3%–4% per year from your age at retirement to your normal retirement age.
Under the current 60-and-30 provision, reduction factors are approximately 2.5%–3% per year from your age at retirement to age 65.
