A year of service
Each year after June 30, 2006 adds 1.9% of your high-five average. On $80,000: $1,520 a year, $126.67 a month. TRA Handbook (2022), p. 16, Tier II (employed after June 30, 1989)
Tier II: the jump to 60-and-30
Our illustration: Tier II, age 60 with 28 years, $80,000 high-five, started before 2006. Year two brings 30 years, and the cut drops from the regular rate to the 60-and-30 rate.
| Retire | Age | Service | Cut | A month | Gain |
|---|---|---|---|---|---|
| As planned | 60 | 28 | 35% | $2,236.00 | — |
| 1 more year | 61 | 29 | 28% | $2,568.00 | +$332.00 |
| 2 more years | 62 | 30 | 7.12% (60-and-30) | $3,430.43 | +$862.43 |
| 3 more years | 63 | 31 | 4.52% (60-and-30) | $3,647.37 | +$216.94 |
| 4 more years | 64 | 32 | 2.15% (60-and-30) | $3,861.82 | +$214.45 |
| 5 more years | 65 | 33 | none | $4,073.33 | +$211.51 |
Gain is against the year before. Regular cut: 7% a year from 59 to 65. Minn. Stat. 354.44, subd. 6(e)(2) (2026) 60-and-30: how it works. Minn. Stat. 354.44, subd. 6(e)(1) (2026)
Tier I: the Rule of 90
Our illustration: Tier I, age 57 with 30 years ($80,000 high-five, 10 years before July 2006). The Step cut is 0.25% a month under 62, until age plus service reaches 90.
| Retire | Age | Service | Formula | Cut | A month |
|---|---|---|---|---|---|
| As planned | 57 | 30 | Step | 15% | $2,833.33 |
| 1 more year | 58 | 31 | Step | 12% | $3,044.80 |
| 2 more years | 59 | 32 | Step | Rule of 90 | $3,586.67 |
| 3 more years | 60 | 33 | Step | Rule of 90 | $3,713.33 |
| 4 more years | 61 | 34 | Step | Rule of 90 | $3,840.00 |
| 5 more years | 62 | 35 | Level | 7.12% (60-and-30) | $3,993.92 |
In the last row the Level formula, even after its 60-and-30 cut, pays more than Step, so TRA would pay Level. Minn. Stat. 354.44, subd. 6(c)(3) (2026); Minn. Stat. 354.44, subd. 6(c)(2) (2026)
From the sources
- Each extra year adds 1.9% of your high-five, may raise your high-five, and removes a year of early reduction: 7% a year from 59 to 65 under the regular Level reduction.Minn. Stat. 354.44, subd. 6(d)-(e) (2026)
- Reaching 60 with 30 years switches you to the much smaller 60-and-30 reduction (35% at 60 becomes 13.05%).Actuarial valuation (July 1, 2025), p. 74, Early Retirement Reduction Factors
Our tables keep your high-five the same. A raise would add more. These are our engine's results, not TRA examples.
Questions
How much does one more year add to a Minnesota TRA pension?
Another 1.9% of your high-five average: on $80,000 that's $1,520 a year, $126.67 a month. If you'd retire early, a smaller cut adds more, and reaching 60 with 30 years switches you to the much smaller 60-and-30 cut.
Does working past the Rule of 90 help a Tier I member?
Each year still adds service, so the Step benefit keeps growing. At some point the Level formula may pay more, and TRA pays whichever is higher.
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) p. 16. Also: Actuarial valuation (July 1, 2025) p. 74; Minn. Stat. § 354.44 (2026). Last reviewed .