Minnesota Legislature passes historic improvement to teacher pension benefits
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ST. PAUL, Minnesota. May 19, 2025 – The Minnesota Legislature has passed a historic improvement to pension benefits for most Minnesota teachers, including creating a career rule that rewards teachers’ decades of service to Minnesota students.
A bipartisan majority of the Minnesota House passed the bill Monday afternoon after the state Senate passed the bill on Sunday, also on a bipartisan vote. The $80 million appropriation includes $40 million for the Minnesota Teacher Retirement Association. The bill now goes to Gov. Tim Walz, who is expected to sign it into law.
“This is a great victory for Minnesota teachers,” said Denise Specht, the president of Education Minnesota. “This ongoing investment will establish a career rule that compares well to the old ‘Rule of 90’ and will go a long way toward easing the teacher shortage that has spread to nearly 90% of school districts in Minnesota.”
The bill affects teachers eligible for a pension through the TRA. It creates an enhanced career rule for teachers at least 60 years of age and with 30 years of service in public schools.
During the discussion of the proposal on Friday, the TRA staff said the plan would have 97% parity with Rule of 90 for people at age 60 and would be a higher benefit than Rule of 90 for anyone retiring at 61 or older.
Minnesota teachers hired after July 1, 1989, were eligible for a “Tier 2” pension, which was significantly inferior to the pensions offered to teachers hired before them. Those teachers hired before July 1, 1989, could retire when their age plus years of service equaled 90 or more, or the Rule of 90.
“This victory could not have happened without the tens of thousands of educators who came together in union to write, call and rally for a retirement benefit that’s fair, flexible and sufficient,” Specht said. “This is what educators can accomplish when we work together.”
The union strongly recommends that teachers consult with the TRA to determine their specific monthly pension benefit under the new plan. Age, end-of-career salary, years of experience and other factors will affect individual benefits.
About Education Minnesota
Education Minnesota is the voice for professional educators and students. Education Minnesota’s members include teachers and education support professionals in Minnesota’s public school districts, faculty members at Minnesota’s community and technical colleges and University of Minnesota campuses in Duluth and Crookston, retired educators and student teachers. Education Minnesota is affiliated with the American Federation of Teachers, National Education Association and AFL-CIO.
