Minnesota TRA's member handbook is dated April 2022, before the 2023, 2024, 2025 and 2026 law changes to the increase rates and the first-increase delay. Where they differ, we use the 2026 Minnesota Statutes and TRA's newer publications (its website, newsletters, 2025 financial report and actuarial valuation).
TRA Handbook (2022), pp. 14-17, 21; Minn. Stat. 354.44 (2026); Minn. Stat. 356.415, subd. 1d (2026)How big
| January 1 of | 2019-2023 | 2024 | 2025 | 2026 | 2027 | 2028 on |
|---|---|---|---|---|---|---|
| Increase | 1% | 1.1% | 1.2% | 1.3% | 1.4% | 1.5% |
Full increase if you've received an annuity for at least 12 full months as of June 30 of the year before the increase; 1/12 of the rate for each month if at least one full month but under 12. Minn. Stat. 356.415, subd. 1d(a) (2026)
The first increase now waits until after 65
Members who retire on or after July 1, 2024 get their first increase on January 1 of the year after the year they reach normal retirement age. If you have received an annuity for fewer than seven months as of that January 1, the first (prorated) increase is the next January 1. The delay does not apply to disability or survivor benefit recipients. Minn. Stat. 356.415, subd. 1d(d) (2026)
So the earlier you retire, the longer you wait. Retiring on July 1, 2026:
| Age at retirement | Turn 65 in | First increase | Years of waiting |
|---|---|---|---|
| 55 | 2036 | January 1, 2037 | 10.5 |
| 60 | 2031 | January 1, 2032 | 5.5 |
| 62 | 2029 | January 1, 2030 | 3.5 |
| 64 | 2027 | January 1, 2028 | 1.5 |
| 65 | 2026 | January 1, 2028 | 1.5 |
| 66 | 2025 | January 1, 2028 | 1.5 |
Our engine, applying the statute. Born July 1 of each year.
Born August 1, 1965 and retiring July 1, 2030 at 64, you turn 65 in 2030. By January 1, 2031 you'd have six months of payments, so the first increase moves to January 1, 2032.
Who was exempt
Members retiring July 1, 2024 through June 29, 2025 under the Rule of 90, or at 62 or older with 30 years, were exempt from the delay. From June 30, 2025 no one is exempt. Actuarial valuation (July 1, 2025), p. 76, Benefit increases
People who retired between July 2024 and June 2025 under the Rule of 90 or 62-and-30 may not have their first increase delayed.
We apply the exemption for that window.
Actuarial valuation (July 1, 2025), p. 76, Benefit increasesThe delay doesn't apply to disability or survivor benefits. Minn. Stat. 356.415, subd. 1d(d) (2026)
An example over time
Our illustration: retire July 1, 2026 at 60 with $3,000 a month. The first increase comes on January 1, 2032:
- January 1, 2032: +1.5% → $3,045.00
- January 1, 2033: +1.5% → $3,090.68
- January 1, 2034: +1.5% → $3,137.04
- January 1, 2035: +1.5% → $3,184.10
- January 1, 2036: +1.5% → $3,231.86
From 2028 the rate is 1.5% a year under current law. The legislature can change it.
Other rules
- Annuities may not drop below the amount originally determined at retirement as adjusted each January 1. Minn. Stat. 354.44, subd. 7a(b) (2026)
- Increases are automatic unless you file a written request with TRA not to receive them. Minn. Stat. 356.415, subd. 1d(b) (2026)
- Postretirement increases each January 1: 1.3% in 2026, 1.4% in 2027 and 1.5% from 2028 on.Minn. Stat. 356.415, subd. 1d(a) (2026)
- If you retire on or after July 1, 2024, your first increase comes on January 1 of the year after the year you turn 65. That applies to everyone retiring from June 30, 2025, including 60-and-30 and Rule of 90 retirees.Minn. Stat. 356.415, subd. 1d(d) (2026)
- The increase is full if you've been paid at least 12 full months by the June 30 before; with 1 to 11 months you get 1/12 of it per month.minnesotatra.org, Postretirement increases, Eligibility
- The COLA delay doesn't apply to disability or survivor benefits.minnesotatra.org, Postretirement increases, Eligibility
Questions
How big is Minnesota TRA's yearly increase?
It's set by law each January 1: 1.3% in 2026, 1.4% in 2027, 1.5% in 2028 on.
When do I get my first increase?
If you retire on or after July 1, 2024, on January 1 of the year after the year you turn 65. If you'd have fewer than 7 months of payments by then, the first increase moves a year later.
Does the delay apply to 60-and-30 and Rule of 90 retirees?
Yes, for everyone retiring from June 30, 2025. Members retiring July 1, 2024 through June 29, 2025 under the Rule of 90, or at 62 or older with 30 years, were exempt from the delay. From June 30, 2025 no one is exempt.
Is the first increase prorated?
Yes. You get the full increase if you've been paid at least 12 full months by the June 30 before; with 1 to 11 months you get 1/12 of it for each month.
Source: TRA Handbook of Benefits and Services, April 2022, with 2023-2026 law changes from Minnesota Statutes 2026 and TRA's 2025-2026 publications. Also: Actuarial valuation (July 1, 2025) p. 76; ACFR FY2025 p. 6; minnesotatra.org; Minn. Stat. §§ 354.44, 356.415 (2026). Last reviewed .