Minnesota TRA 60-and-30 Rule: Eligibility, Service and Benefit Reductions

What the 60-and-30 rule changes

Minnesota’s 2025 pension law changed the early-retirement provision that had been described as 62-and-30. Eligible Teachers Retirement Association (TRA) members may now qualify at age 60 with at least 30 years of allowable service. The change took effect June 30, 2025. It changes how the early-retirement reduction is calculated for people who meet the statutory conditions; it does not turn an early retirement into the same benefit as an unreduced normal-retirement annuity.

The key practical difference is the reduction method. TRA says eligible members receive a lower set of reduction factors under the Level formula, and the 2025 law changed the reduction factor from 6% with augmentation to 5% with augmentation. That wording is easy to misread as a flat five-percent cut to the entire pension. It is not a stand-alone quote for your personal reduction. The calculation depends on the retirement age, normal retirement age, formula and service record. Have TRA calculate the actual amount for your date and payment option.

TRA’s current early-retirement page gives approximate Level Formula reduction ranges of 2.5%–3.0% per year from the member’s retirement age relative to age 65 for those who qualify for 60-and-30. For members who do not qualify, it lists 4% per year for ages 55 through 58 and 7% per year from age 59 up to normal retirement age. The prior 62-and-30 provision used an approximate 3%–4% range. These are the plan’s published guideposts, not a substitute for a personalized estimate, and the eligible member’s reduction is still permanent.

The new provision also does not replace the separate Rule of 90 or every other retirement path. A member may qualify for an unreduced benefit under another rule, qualify for a different early-retirement calculation, or be eligible to start a reduced annuity without meeting the 60-and-30 test. Those routes can have different start dates and monthly amounts. Compare written estimates under the rule that applies to your membership history rather than deciding from the age-and-service shorthand alone.

The eligibility checklist has more than two numbers

The age and service test is only one part of eligibility. TRA’s current guidance says the member must retire at age 60 or older on or after June 30, 2025, and must have at least 30 years of allowable service credit. The enactment-date test is more precise than asking whether someone was physically at work on May 23, 2025: members who had not terminated covered service before that date are generally in the eligible group, as are members on an approved leave. A member who had terminated TRA service earlier may still qualify if they were active with another listed Minnesota public plan on that date. Someone who terminated before May 23 and was not active in another covered plan generally needs to return to covered service and earn at least one-half year of service credit for the improvement to apply.

The service total may include qualifying service in TRA and in other Minnesota public retirement systems named by the law, including MSRS, PERA and the St. Paul Teachers Retirement Fund Association (SPTRFA). The plans do not merge into one account. The service is coordinated for the relevant eligibility test, and each plan still determines and pays the benefit tied to its own service. Ask each administrator to confirm the allowable, non-overlapping service that it will certify.

A gap in employment, part-time service, a refund, an uncredited leave, or a period covered by a different retirement arrangement can change the number of years that count. Calendar years in public employment are not automatically the same as 30 years of allowable service. If a former job or another plan is missing from your record, resolve that issue before settling on a retirement date. Keep the plan’s service-credit determination with the estimates you compare.

• Confirm age on the proposed effective retirement date, not just age on the day you request an estimate.
• Ask TRA and every other Minnesota plan to confirm its service credit and whether the service overlaps.
• Verify the May 23, 2025 active-status requirement against your membership history.
• Ask TRA to show the 60-and-30 result alongside any Rule of 90 or normal-retirement estimate that may apply.

A worked planning example without pretending to calculate the pension

Consider a teacher who will turn 60 in March, has 27 years of TRA service and three years in a Minnesota public employer covered by PERA, and was active in a covered system on May 23, 2025. That career history may satisfy the 30-year service total for the special provision if the three PERA years are allowable and do not overlap the TRA years. It still does not tell the teacher the exact monthly TRA annuity or prove that all statutory conditions are met.

The teacher should request a TRA estimate for the intended retirement date and disclose the PERA service. The request should ask TRA to confirm which service counts toward the 30-year test, whether the retirement date is within the required coordination window for the other plan, and which early-retirement method is used for the TRA portion. Then request the other plan’s separate estimate. The two plans may use the same high-five salary period for a coordinated benefit, but they calculate their own service portions under their own provisions.

A second scenario changes one important fact: the teacher terminated all covered service before May 23, 2025, was not active in another listed plan, and was not on an approved leave. Even with 30 years of service and age 60, the teacher should not assume the new 60-and-30 factors apply immediately. TRA says a former member in that situation must return to covered service and earn at least one-half year of service credit for the law change to apply. Ask TRA to confirm whether that return-to-service condition applies and request estimates under the correct provision. One eligibility fact can matter more than a small difference in projected salary or birthday timing.

How to compare the 60-and-30 estimate with your other options

Start with the same retirement date and personal assumptions in every estimate. A fair comparison uses the same final day of covered employment, salary history, service-credit total, beneficiary information and payment option. If one estimate assumes a single-life annuity and another assumes survivor protection, the monthly numbers are not directly comparable. Ask the system to explain each option in writing and show what changes if the member chooses a survivor benefit.

The member should also compare the near-term start date with the value of waiting. A later retirement date can add service credit and may change the age-related reduction, while continuing work can affect final salary and contributions. On the other hand, a deferred payment may start later and can be subject to different augmentation rules. Do not multiply the early-retirement percentage by years and treat that rough math as a break-even analysis; timing, payment option, taxes and individual longevity all affect that comparison.

If your service crosses systems, coordinate the dates before filing. Minnesota TRA explains that combined service can help members meet eligibility requirements, but the plans remain separate and have separate applications. Your effective retirement dates and termination status can affect the coordinated benefit. Ask the other system whether its application timing needs to align with TRA’s, and confirm that beginning one benefit will not change the assumptions in the other estimate.

Application steps and records to keep

Before applying, sign in to myTRA and review the service and salary history that will be used in the estimate. Tell TRA about service in PERA, MSRS or SPTRFA and ask for a coordinated estimate if it may affect eligibility. If another plan has a refund on record, ask that plan whether repayment can restore the service and whether a payment deadline applies. Do not assume a refund can be reversed after retirement paperwork is submitted.

Once the assumptions are correct, compare the written estimates and choose an effective date. TRA’s near-retirement guidance explains that members can request an estimate and discuss retirement options with a counselor. A member with multiple plans should confirm the application steps with each administrator. Keep copies of the service statements, estimate, application receipt and any written answer about 60-and-30 eligibility. If the estimate changes after the service record is corrected, use the revised estimate rather than an earlier screenshot.

The 60-and-30 rule is useful because it gives some long-service members a more favorable early-retirement calculation. The most reliable way to use it is to treat it as a question for the plan to certify: verify the enactment-date status, confirm all service, choose a date, and request the exact estimate. If one condition is uncertain, resolve it before giving an employer a final retirement date.