ISSUE:

In order to maintain its status as “the education state,” it is imperative that Minnesota pass a Career Rule of 60 & 30 without penalty (age 60 and 30 years of service) and Lowering all Penalties (from 7% to 5% from ages 59-64) for those educators who do not reach the career rule of 60 and 30. These changes will benefit all Tier II Educators!

This issue is not new.  In 2021, 28,445 signatures were collected via a Change.org petition to demonstrate the need for an unreduced career rule for Tier 2 educators.  The petition was then sent to Education Minnesota, TRA, and legislators.  

This petition is a continuation of those efforts.  The time for change is NOW!

FACTS:

• A career rule of 60 and 30 without reductions provides educators reasonable choice and flexibility. 
• Minnesota educators hired before July 1, 1989 (Tier 1) have a career “Rule of 90” (age + years of service = 90) with full benefits allowing these educators the possibility to retire as early as age 56 without penalty. A career rule of 60 & 30 without penalties is a fair compromise.
• Minnesota educators hired after July 1, 1989 (Tier 2) have NO career rule without reductions and face large penalties if they retire and begin collecting before age 65. In order to get an unreduced (no penalties) pension, MN Tier 2 educators must be age 65, regardless of their number of years of service.  This ignores the valuable service of career educators. 
• All surrounding states - Iowa, South Dakota, North Dakota, and Wisconsin - provide a career rule without reductions to their members (with the exception of educators hired after 2017 in South Dakota). Furthermore, Minnesota is one of only 12 states that either does not have a career rule without reductions or does not allow educators to retire before age 60 without reduction.
• Beginning in fiscal year 2025, employee contributions will increase from 7.75% to 8.00% (national average 6.5%) and employer contributions will increase from 8.75% to 9.5% (national average-8%).  According to TRA’s annual report, the benefit cost for Tier 2 educators is 11.15% yet Tier 2 educators are currently contributing 16.5%. 
• According to NCTR (National Council on Teacher Retirement), Minnesota currently contributes only 2.4% of the state's budget towards educator pensions, significantly LESS than the national average of 5%.

Please view Todd Richter’s Pension Specialist slide deck for more in depth information. Minnesota Pension Reform Education 24-25 Minnesota Pension Reform Education Slide Deck