Buying Minnesota TRA service credit

What a year is worth

Each year adds 1.9% of your high-five average under the Level formula: on $80,000, about $1,520 a year for life. It can also help you reach 30 years for 60-and-30 or the Rule of 90. TRA Handbook (2022), p. 16, Tier II (employed after June 30, 1989)

Leaves of absence

Sabbatical (up to three years in any ten), medical, parental, family (one year each fiscal year where stated), extended (3 to 5 years), legislative and military leaves. Payment is member plus employer contributions on the salary rules given, due by deadlines, with 0.71% monthly compounded interest if paid late; all before retirement. TRA Handbook (2022), pp. 5-8, Leaves of Absence

Prior military service

Active vested members with honorable discharge may buy prior military service (initial enlistment, induction or call) at actuarial cost. TRA Handbook (2022), p. 8, Military leave (and prior service)

Out-of-state teaching

Purchase of service credit for teaching service in other states is authorized by statute. Ask TRA what applies to you. Minn. Stat. 354.544 (2026)

Part-time teachers

Eligible part-time teachers can pay contributions to earn full-time service credit for up to 10 years (agreement with employer by Oct. 1 each year). TRA Handbook (2022), pp. 8-9, Part-time teacher program

Service in other Minnesota plans

You don't buy it; it combines. With at least one-half year of allowable service in one or more of SPTRFA, MSRS and PERA, combined service can meet vesting and each system pays a combined service annuity using the same highest five successive years of salary. Apply to each system; retirement dates must be within one year. TRA Handbook (2022), p. 14, Combined service annuity

The details

• You can buy service for authorized sabbatical, medical, parental, family, extended and military leaves; payment covers member and employer contributions and must be made before you retire.TRA Handbook (2022), pp. 5-8, Leaves of Absence
• Vested members can buy prior military service at actuarial cost.TRA Handbook (2022), p. 8, Military leave (and prior service)
• Part-time teachers may pay to earn full-time service for up to 10 years under the Part-time teacher program.TRA Handbook (2022), pp. 8-9, Part-time teacher program
• Before you can buy credit for a leave, your employer must certify the leave to Minnesota TRA, and you must keep the right to full reinstatement during and after the leave. Leaves must be authorized by the school board and documented in minutes or policy.TRA Handbook (2022), p. 5, Leaves of Absence
• You can pay for service credit with your own money or by transferring funds from a traditional IRA or another qualified pension plan. Ask Minnesota TRA for a cost estimate.TRA Handbook (2022), p. 6, Leaves of Absence
• A sabbatical counts if you're paid at least one-third of your comparable salary and contributions are paid on your full contract salary. At most three years of sabbatical credit are allowed in any 10 consecutive years.TRA Handbook (2022), p. 6, Sabbatical leave
• Medical and parental leaves: you can buy up to one year of credit a fiscal year. Payment covers member and employer contributions on your average full-time monthly salary when the leave began, due by December 31 after the fiscal year of the leave, or by the next June 30 with 0.71% a month compounded interest, and always before you retire.TRA Handbook (2022), p. 6, Medical leave; Parental leave
• While you're on an authorized leave you can't take a refund, because you're still employed. If you're laid off (an unrequested leave), you can take a refund of your contributions plus interest.TRA Handbook (2022), p. 6, Leaves of Absence

Minnesota TRA prices purchases from your records; we don't estimate costs. See what one more year is worth.

Questions