TRA Retirement Report
The Minnesota Teachers Retirement Association (TRA) administers a defined-benefit pension plan for eligible teachers and certain other licensed staff employed by TRA-covered employers. Unlike defined-contribution plans such as 401(k) or 403(b) plans, TRA provides a statutorily defined lifetime retirement benefit rather than an individual account balance.
Both employee and employer payroll contributions are mandatory for TRA-eligible positions. Contributions are calculated as a percentage of TRA-eligible salary and must be withheld, matched, and remitted by the employer in accordance with Minnesota statutes and TRA reporting requirements. All contributions are invested by the Minnesota State Board of Investment (SBI) to fund future benefit payments.
Retirement Benefit Structure
TRA benefits are determined by a formula established in Minnesota law and are based on:
The member’s age at retirement.
Total years of credited service.
The member’s high-five average salary (the highest five consecutive years of TRA-eligible compensation).
Because benefits are formula-based, accurate reporting of salary, service credit, and employment status is essential. Members receive a lifetime monthly pension benefit, and they do not directly manage investments or bear individual investment risk.
Funding and Cost-of-Living Adjustments
TRA benefits are funded through a combination of:
Employee contributions
Employer contributions
Investment earnings, which historically represent a substantial portion of total funding over time.
Post-retirement cost-of-living adjustments (COLAs) are not guaranteed and are determined by statutory provisions and the plan’s funded status.
Membership Eligibility and Vesting
TRA membership generally applies to licensed teachers and other eligible staff employed by TRA-covered public school districts and education-related employers. Members must meet statutory vesting requirements to qualify for a future pension benefit. Employees who separate from service before vesting may be eligible for a refund of employee contributions, subject to TRA rules.
TRA also provides disability and survivor benefits, which rely on accurate employer-reported employment, salary, and service data.
Employer Payroll Reporting Responsibilities
Employers are responsible for submitting timely and accurate TRA retirement reports, which include:
Employee and employer contribution amounts
TRA-eligible salary and compensation
Service credit information
Employee demographic and employment data (e.g., hire dates, position eligibility, employment status changes)
TRA retirement reporting is typically performed on a pay-period or recurring basis and is used by TRA to:
Credit the employee service accurately.
Determine benefit eligibility and vesting.
Calculate future retirement, disability, and survivor benefits.
Reconcile contributions and ensure statutory compliance.
Errors or omissions in reported salary, contributions, or eligibility can result in incorrect service credit, benefit miscalculations, required corrections, or retroactive adjustments.
Purpose of the TRA Retirement Report
The TRA Retirement Report serves as the official mechanism by which employers:
Remit required retirement contributions.
Report pension-eligible wages and employment data.
Maintain compliance with Minnesota retirement statutes.
Support accurate long-term benefit administration for TRA members.
Demographic information is required for all new hires to ensure that TRA has an account established to record their earnings and service information.
Menu path
From the Human Resources menu, select State. From the State-MN menu, select TRA Retirement Report.
Submission period
The TRA retirement report submissions are due 14 days from the payroll paid date.
Selection rule
An employee is included in the MN TRA (Teachers Retirement Association) Retirement Report if they meet any one of the following four conditions:
Check | Condition | Description |
|---|---|---|
1 | Has a TRA deduction plan | The employee has a deduction plan with plan type "T" (TRA). |
2 | Has TRA check history | The employee has TRA retirement check history data within the specified payroll date range. |
3 | Is a retiree | The employee's Annuitant Type field on the Payroll Information - State Required page contains either of the following values:
|
4 | Status changed | The employee's status has changed since the last report was submitted. |
Prerequisites
Enter the TRA Employer Number on the Human Resources Profile - State page.
Enter valid values in the following fields on the Minnesota State Required page:
TRA Member ID
Annuitant Type
TRA Position
TRA Elig Code
Employ Status
Status Date
Ensure that valid pay codes are configured on the Pay Codes page with the correct pay type selected in the TRA Pay Type field.
Ensure that valid pay groups are configured on the Pay Groups page.
Ensure that the table codes are configured correctly on the User Defined Table page:
EL
ES
TL
Set up Retirement Deductions.
Enter the correct hire date in the Hire Date field on the Employment tab of the Employee Information page.