The Level formula (everyone)
High-five average × 1.7% per year before July 1, 2006 + 1.9% per year after
1.7% of high-five average salary for each year of service before July 1, 2006 and 1.9% for each year on or after July 1, 2006 (July 1, 2013 for former Duluth members). TRA Handbook (2022), p. 16, Tier II (employed after June 30, 1989)
Retire at 65 with 20 years, all after July 1, 2006, and a $75,000 high-five.
20 × 1.9% = 38%. $75,000 × 38% = $28,500 a year, $2,375 a month. Our calculator gives the same.
minnesotatra.org, Pension basics, Calculation exampleThe Step formula (Tier I only)
| Years of service | Before July 1, 2006 | After June 30, 2006 |
|---|---|---|
| First ten years | 1.2% | 1.4% |
| Year 11 on | 1.7% | 1.9% |
Tier I members are figured both ways and get the higher amount. The Step formula pays less per year but has a smaller early cut and the Rule of 90. Which tier am I?
Example (our illustration, $80,000 high-five): a Tier I member at 58 with 32 years, 12 of them before July 2006, has Step 53.4% = $3,560.00 a month, no cut under the Rule of 90. Level is 58.4% but cut 46% at 58, so $2,102.40. TRA pays the Step amount.
The Tier I formula pays less for your first ten years. We assume your first ten years are your earliest ones.
Chronological order; the service-before-July-2006 figure is yours to enter (default: assumes continuous service up to retirement).
Minn. Stat. 354.44, subd. 6(b) (2026)For former Duluth (DTRFA) members the break is June 30, 2013 instead of June 30, 2006.
Your high-five average salary
- Your high-five average salary is the highest average over five successive years of formula service credit.TRA Handbook (2022), p. 16, High-five formula
- If a year in the window has less than a full year of service, TRA reaches back to earlier years to make five years, using a matching share of the earliest year's salary.TRA Handbook (2022), p. 16, High-five formula
- Employer-paid insurance and fringe benefits, payments in lieu of insurance and severance pay aren't TRA salary. Minnesota Paid Leave program payments aren't either (2026 law).TRA Handbook (2022), p. 5, Excluded salary
- Service credit: PreK-12 monthly salary divided by your district's monthly base salary, up to 0.111 a month and one year per fiscal year.TRA Handbook (2022), pp. 4-5, Service credit
What it replaces
For the average retiree, the TRA benefit replaces 40 to 45 percent of pre-retirement salary. TRA Handbook (2022), p. 16, Calculating a retirement benefit
- The average TRA retiree's benefit replaces 40% to 45% of pre-retirement salary.TRA Handbook (2022), p. 16, Calculating a retirement benefit
Minnesota TRA's member handbook is dated April 2022, before the 2023, 2024, 2025 and 2026 law changes to normal retirement age and the early-retirement cuts. 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)Next: what retiring early costs, or run your own numbers.
Questions
What percentage does Minnesota TRA pay per year of service?
Under the Level formula, 1.7% of your high-five average salary for each year before July 1, 2006 and 1.9% for each year after.
How does TRA's own example work?
Retiring at 65 with 20 years after July 1, 2006 and a $75,000 high-five: 20 × 1.9% = 38%, so $28,500 a year or $2,375 a month.
What is the high-five average salary?
Your highest average salary over five successive years of service credit.
Source: TRA Handbook of Benefits and Services, April 2022, with 2023-2026 law changes from Minnesota Statutes 2026 and TRA's 2025-2026 publications, TRA Handbook (April 2022) pp. 4-5, 5, 15, 15-16, 16. Also: minnesotatra.org. Last reviewed .