TRA Retirement Report

Teachers Retirement Association (TRA) is a defined-benefit pension plan that’s more similar to Social Security than to a 401(k) or 403(b) defined-contribution plan. During an employee’s (teacher or other eligible licensed staff member) career with a TRA-covered employer, the employee and employer make mandatory payroll contributions to the TRA. The Minnesota State Board of Investment manages these funds to pay members’ eventual retirement benefits.

The TRA defined-benefit plan provides a predictable retirement benefit based on age at retirement, length of credited service, and a high-five average salary (the highest five consecutive years of salary), unlike an accumulated account balance in a defined-contribution plan. As a TRA member, employees can look forward to a lifetime pension benefit regardless of stock market performance. Members do not have to be investment experts or directly bear the risk of investment performance.

Defined-benefit plans are considered one of the most efficient means of providing stable lifetime retirement income. In addition to employee and employer contributions, investment earnings account for a substantial majority of the total revenue, historically about three-fourths, that pays for TRA members’ benefits. However, the exact percentage may vary over time.

Eligibility for TRA membership applies to teachers and certain other licensed staff employed by TRA-covered employers, and benefits are subject to applicable vesting requirements. Cost-of-living adjustments (COLAs) to retirement benefits are not guaranteed and depend on statutory provisions and the plan's funding status.

Reporting employees’ eligible salaries is a key component in determining retirement benefits. Employers use the TRA retirement report to submit employees’ and employers’ contributions, eligible salary information, and required employee demographic data, all of which directly affect the calculation of members’ retirement benefits.

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

Employees who are TRA members with a specific paycheck date are selected and reported.

Prerequisites

• Enter valid information in the TRA Employer Number field on the Human Resources Profile - State page.

• Enter valid information in the following fields on the Payroll Information - State Required page:

  • TRA Member ID

  • Annuitant Type

  • TRA Position

  • TRA Elig Code

• Set up Retirement Deductions.