Are you vested?
You need 3 years of service for a lifetime monthly benefit. Service in SPTRFA, MSRS or PERA can be combined to meet the vesting requirement (combined service annuity). TRA Handbook (2022), p. 4, Vested after three years of TRA service; TRA Handbook (2022), p. 14, Combined service annuity
Option 1: leave your money in (vested only)
A vested member who leaves can defer the annuity to age 55 or later. Augmentation on deferred annuities stopped after June 30, 2019. Returning to any public employment for even one day while deferring ends augmentation eligibility. ACFR FY2025, p. 124, Deferred Retirement
Augmentation now: 0% (since July 1, 2019). Earlier: 3% a year through Dec. 31 of the year you'd reach 55 and 5% a year after (before July 1, 2012); 2% July 1, 2012 - June 30, 2019; 0% after June 30, 2019. ACFR FY2025, p. 124, Deferred Retirement
Option 2: take a refund
If you leave teaching you may take a refund of all your contributions plus interest compounded annually (no partial refunds; employer contributions stay with TRA). You forfeit all service and future benefits. Apply no sooner than 30 days after termination. ACFR FY2025, p. 125, Refunds
| Contributions made | Interest |
|---|---|
| Through June 30, 2011 | 6% |
| July 1, 2011 to June 30, 2018 | 4% |
| From July 1, 2018 | 3% |
Taxes: Paid to you directly: 20% federal withholding on the taxable part, plus a 10% additional federal tax if under 59 1/2 unless an exception applies; optional 6.25% Minnesota withholding. Rollover to an IRA or eligible plan avoids current tax. TRA Handbook (2022), p. 12, Taxation of refunds
Paying a refund back
Come back to TRA-covered work and earn 2 years of service, and you can repay it to restore the service. Interest: 8.5% through June 30, 2018; 7.5% July 1, 2018 - June 30, 2023; 7% from July 1, 2023, compounded annually. All refunds repaid in one lump sum before retirement. ACFR FY2025, p. 125, Repayment of Refunds
The details
- If you leave you can take a refund of your own contributions plus interest (6% before July 2011, 4% to June 2018, 3% since). You give up all service and future benefits; employer contributions stay with TRA.ACFR FY2025, p. 125, Refunds
- If you're vested you can leave your money in and start a deferred benefit at 55 or later. Deferred benefits no longer grow (augmentation ended June 30, 2019).minnesotatra.org, Nearing retirement, If you are deferring retirement
- To repay a refund you must come back and earn two years of service; repayment interest is 7% from July 1, 2023.ACFR FY2025, p. 125, Repayment of Refunds
Thinking of buying back time instead? See buying service credit.
Questions
What happens to my Minnesota TRA money if I leave teaching?
If you're vested (3 years), you can leave it in and start a deferred benefit at 55 or later, or take a refund of your contributions plus interest. If you're not vested, a refund is your only option.
Do I get my employer's contributions?
No. A refund is your own contributions plus interest. Employer contributions stay with TRA.
Does a deferred benefit grow while I wait?
No longer. Augmentation on deferred benefits ended after June 30, 2019.
Source: TRA Handbook of Benefits and Services, April 2022, with 2023-2026 law changes from Minnesota Statutes 2026 and TRA's 2025-2026 publications, TRA Handbook (April 2022) pp. 4, 11, 12, 14, 17. Also: ACFR FY2025 pp. 124, 125; minnesotatra.org; Minn. Stat. § 354.49 (2026). Last reviewed .