The Minnesota Legislature has passed a significant improvement to pension benefits for teachers, introducing a career rule that acknowledges their long-term service. The bill received bipartisan support, with the House passing it on Monday and the Senate on Sunday. The legislation includes an $80 million appropriation, half of which is allocated to the Minnesota Teacher Retirement Association (TRA). Governor Tim Walz is expected to sign it into law.
“This is a great victory for Minnesota teachers,” stated Denise Specht, president of Education Minnesota. She emphasized that the investment will create a career rule comparable to the previous “Rule of 90” and help address the teacher shortage affecting nearly 90% of school districts in the state.
The new rule impacts teachers eligible for TRA pensions, enhancing benefits for those aged 60 or older with at least 30 years of service in public schools. According to TRA staff, the plan achieves 97% parity with Rule of 90 at age 60 and offers higher benefits for retirees aged 61 or older.
Teachers hired after July 1, 1989, were previously under a “Tier 2” pension system, less favorable than those hired before this date who benefited from Rule of 90—allowing retirement when age plus years of service equaled at least 90.
“This victory could not have happened without tens of thousands of educators who came together in union,” Specht added. She encouraged teachers to consult with TRA about their specific pension benefits under the new plan, noting that factors such as age and end-of-career salary will influence individual outcomes.
Education Minnesota represents professional educators across various institutions in Minnesota and is affiliated with major national educational organizations.
