TRA Minnesota's Teacher's Retirement Association - Your pension

• • You contribute 8.0% of you salary and the district matches 9.81% for '26-'27 into the TRA pension fund.

  • Normal retirement age (NRA) is 65 years old.

  • There is a good early retirement option if you are at least 60 and have taught in Minnesota public schools for at least 30 years in Minnesota.

  • Want to get a retirement estimate?  Click here.  (Requires TRA Login)

  • There were many positive changes to the pension in 2025 that started July 1st.  Click here for details.

  • Want to learn more about TRA?  Click here to go to TRAs pre-recorded video library.

403(b) (Tax Sheltered Annuity Plan)  January 1, 2026 Update

• • Once you have been employed by BPS for 3 years (i.e at the start of your 4th year) you are eligible for a 3% match of your salary into a 403(b) plan.

  • Once you have been employed by BPS for 18 years (i.e. at the start of your 19th year) you are eligible for a 4% match of your salary into a 403(b) plan.

  • You can choose a 403(b) company from a list of district approved vendors.  Some vendors let you choose your own investments while others have you work with a financial planner.  

  • Most BFT members contribute enough to their 403b to get the 3% or 4% match, but starting in 2026 you can save up to $24,500 per calendar year if you are under age 50 or $32,500 per year if  you are 50 or older.  Please see IRS publications for details and as always be sure to confirm these numbers with a tax professional to be sure you don't over contribute.

  • Just because you don't have a match doesn't mean you can't invest in a 403b, remember to start saving early if you can.  

  • To start or change your 403(b) fill out this 403(b) Wage Deferral Authorization Form.

  • Wondering how to check if you are getting your match?  Check out this 403(b) information document.

HSAs  (Health Saving Accounts)

• • A health savings account is a great tax-free way to pay for medical expenses.  As long as it is used for qualified medical expenses, HSAs are free from payroll tax, federal tax, state tax, and money in HSAs can be invested and any returns are tax free as well.

  • The district contributes $850/year for single coverage or $1,700/year for +1 or family coverage into your HSA.  This amount is 50% of your yearly deductible.  The deductible runs from July 1st to June 30th.

  • The maximum amount that can be contributed to an HSA each year is $4,400 for single or $8,750 for +1 or family for 2026.  This maximum amount includes both the district and employee's contribution.  If you are 55 or older you can also put in an additional "catch-up" contribution of $1,000.  For more details click here.

  • To change your HSA contributions, click here!

  • Q:  Why would I want to put more than my deductible into an HSA?  

A:  Putting extra money into an HSA is a great tax-free way to save for retirement.  You WILL HAVE medical expenses when you are retired, so why not pay for them tax free?  HSAs are a tax-free "triple threat!"  No payroll tax - like social security tax (6.2%) and medicare (1.45%) tax, no federal income tax (maybe 22% for the average teacher), no state tax ( about 8%), and zero tax on invested earnings as long as the HSA is used for qualified medical expenses.

ATTENTION: Are you getting emails like this from companies that claim to be experts about the TRA?

"Each year, as a member of the Minnesota Public School Retirement System, you are eligible to schedule a phone call or videoconference off campus with a representative for answers to your specific state, federal and individual retirement benefit questions." 

      -AmericanPension-Retirement.com

We are encouraging BFT members to communicate with their own financial advisor from 403b providers, MN TRA, Jeremy Kersten, or Michael Erickson (our preferred vendor for 403b's through Education Minnesota).  Communicating with any of these individuals is free and they will give good advice.  

MNDCP (Minnesota Deferred Compensation Plan)

The vast majority of BFT members will be very well covered in retirement between TRA, matching 403(b) contributions, and HSAs.  However, if you are in a position to save even more for retirement (maybe you won the lottery or have a CEO spouse?) then all public employees in Minnesota are elligible to make contricutions to the Minnesota Deffered Compensation Plan which is authorised under section 457 of the Internal Revenue Code.  While there are no matching contributions for BPS teachers in the MNDCP, pre-tax dollars can be withdrawn from the plan with no penalties once you retire or terminate employment with BPS even if you are under the age of 59.5.   

ID Me - TRA Login

Coming soon in February 2025, TRA members will need to sign in with ID.me to access their myTRA online accounts.

ID.me, a third-party vendor, is certified against federal standards to provide secure login and identity verification.

Your verified identity helps TRA ensure that the person logging in to your account is really you and not someone pretending to be you. ID.me has more than 136 million users and is trusted by federal and state agencies for secure identity verification. ID.me provides identity verification services for commerce, government, and health care.

Using ID.me

• If you already have an ID.me account, you’ll sign in using your existing account and consent to share your information with TRA. Don’t create a new ID.me account.

• If you’re using an ID.me account for the first time, you’ll create a new account with your personal email address and follow the prompts to verify your identity and share your information with TRA.

https://minnesotatra.org/news/id-me/