Solving TRA is proving to be elusive as well. The Senate is advancing a pensions bill without a TRA fix until a compromise position can be found between the parties. The House pension bill calls for employee and employer increases and retiree freezes, but provides no funding at this time for increased district contributions.
One thing is clear, a new assumption of a 7.5 percent return on investment instead of the current 8.5 percent ROI is a done deal. Watch for a better TRA fix to emerge this week as part of the global deal on E-12 funding.
TRA, Minnesota’s Defined Benefit (DB) retirement program for teachers, is squeezed by an average two-year increase in teacher life expectancy and expectations of lowered investment returns.
MREA supports maintaining a stable DB retirement plan through shared responsibility and supports the Governor’s proposed investment in TRA.
DB retirement is an important factor in both teacher recruitment and retention, according to data presented by TRA. Read more.