Minnesota TRA · One more year

Minnesota TRA: what one more year is worth

Working longer adds in up to three ways: another year of service, maybe a higher high-five, and, if you'd retire early, a smaller cut. Near 60 with 30 years, the jump can be large.

Minnesota specificsShort answer: one more Minnesota TRA year adds 1.9% of your high-five, $1,520 a year on $80,000, and if you'd retire early it also shrinks the cut. Reaching 30 years at 60 or older switches you to the much smaller 60-and-30 cut. Open the example below in the calculator (age 60, 28 years) and compare with early retirement rules.

A year of service

Each year after June 30, 2006 adds 1.9% of your high-five average. On $80,000: $1,520 a year, $126.67 a month. TRA Handbook (2022), p. 16, Tier II (employed after June 30, 1989)

Tier II: the jump to 60-and-30

Our illustration: Tier II, age 60 with 28 years, $80,000 high-five, started before 2006. Year two brings 30 years, and the cut drops from the regular rate to the 60-and-30 rate.

Tier II: the jump to 60-and-30 (Minnesota TRA)
RetireAgeServiceCutA monthGain
As planned602835%$2,236.00—
1 more year612928%$2,568.00+$332.00
2 more years62307.12% (60-and-30)$3,430.43+$862.43
3 more years63314.52% (60-and-30)$3,647.37+$216.94
4 more years64322.15% (60-and-30)$3,861.82+$214.45
5 more years6533none$4,073.33+$211.51

Gain is against the year before. Regular cut: 7% a year from 59 to 65. Minn. Stat. 354.44, subd. 6(e)(2) (2026) 60-and-30: how it works. Minn. Stat. 354.44, subd. 6(e)(1) (2026)

Tier I: the Rule of 90

Our illustration: Tier I, age 57 with 30 years ($80,000 high-five, 10 years before July 2006). The Step cut is 0.25% a month under 62, until age plus service reaches 90.

Tier I: the Rule of 90 (Minnesota TRA)
RetireAgeServiceFormulaCutA month
As planned5730Step15%$2,833.33
1 more year5831Step12%$3,044.80
2 more years5932StepRule of 90$3,586.67
3 more years6033StepRule of 90$3,713.33
4 more years6134StepRule of 90$3,840.00
5 more years6235Level7.12% (60-and-30)$3,993.92

In the last row the Level formula, even after its 60-and-30 cut, pays more than Step, so TRA would pay Level. Minn. Stat. 354.44, subd. 6(c)(3) (2026); Minn. Stat. 354.44, subd. 6(c)(2) (2026)

From the sources

Our tables keep your high-five the same. A raise would add more. These are our engine's results, not TRA examples.

Questions

How much does one more year add to a Minnesota TRA pension?

Another 1.9% of your high-five average: on $80,000 that's $1,520 a year, $126.67 a month. If you'd retire early, a smaller cut adds more, and reaching 60 with 30 years switches you to the much smaller 60-and-30 cut.

Does working past the Rule of 90 help a Tier I member?

Each year still adds service, so the Step benefit keeps growing. At some point the Level formula may pay more, and TRA pays whichever is higher.

Compare your own dates →

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) p. 16. Also: Actuarial valuation (July 1, 2025) p. 74; Minn. Stat. § 354.44 (2026). Last reviewed .