HF4069 (Legislative Session 94 (2025-2026))
Teachers Retirement Association; definition of teacher modified, and employee contribution refunds required.
Related bill: SF4410
AI Generated Summary
Purpose
Explain and update who counts as a “teacher” for Minnesota’s Teachers Retirement Association (TRA) and the St. Paul Teachers Retirement Fund Association (SPTRFA). The bill also provides a one-time refund of employee contributions for certain past employees who would have been excluded from TRA or SPTRFA eligibility under the old rules, if they were employed by May 31, 2026, and are on a J-1 visa.
Main Provisions
- Redefine “Teacher” to include a broader set of roles:
- People who render service as teachers and related positions (supervisor, principal, superintendent, librarian, nurse, counselor, social worker, therapist, psychologist) in public schools, charter schools, or the Perpich Center for Arts Education (with an exception: some Perpich Center employees stay under a different retirement system if they were covered there as of July 1, 2018).
- People engaged in educational administration in the state public school system.
- Charter school directors or chief administrative officers (with a provision that if they are covered by another retirement plan as of July 1, 2018, they stay in that plan).
- Employees of the TRA.
- Part-time teachers who also perform other services for the same employing unit if teaching makes up at least 50% of their combined salary; if the teaching share is less than 50%, the executive director can determine whether all combined service is TRA-covered.
- Certain unclassified employees at Minnesota State Colleges and Universities (President/VP/Dean; managers or professionals in academic/academic support roles; certain administrative/service positions; teachers or research assistants).
- Exclusions from being a “Teacher”:
- Independent contractors (and their employees) and their annuitants who return to TRA-covered work after retirement.
- Employees of the University of Minnesota.
- Members or officers of governing boards of units that participate in TRA.
- ISD 625 employees who meet other specified definitions, or ISD 625 teachers under current 354A.011 definitions.
- People who are U.S. citizens working under a J-1 visa.
Changes to Existing Law
- Section 1 amends TRA definitions (Minnesota Statutes 2024 section 354.05) to broaden who is considered a “Teacher” and clarifies when coverage should shift to alternate retirement plans.
- Section 2 amends 354A.011 (the St. Paul/ISD 625 definition) to align with the broadened TRA coverage for St. Paul, including licensed part-time and certain combined-employment scenarios; confirms exceptions where coverage does not apply (e.g., independent contractors, full TRA-covered teachers, non-licensure-exempt positions, retirement annuitants, J-1 visa employees).
- Section 3 creates refunds for certain past employees on J-1 visas who would have been excluded under the old definitions:
- TRA must refund employee contributions for any teacher employed by May 31, 2026 who would have been excluded if the old rule had applied.
- Refunds must include 3% annual interest from the date contributions were made, through the last day before the refund is issued.
- Refunds must be issued by July 31, 2026.
- Section 4 provides the corresponding refund requirements for the St. Paul Teachers Retirement Fund Association (SPTRFA) under the same May 31, 2026 cutoff and 3% interest, to be paid by July 31, 2026.
Effects and Implications
- Broadens eligibility to participate in TRA/SPTRFA, potentially increasing retirement-plan coverage for more school staff, including certain administrators and hybrid teaching roles.
- Clarifies which positions are covered when a staff member also performs non-teaching duties, and when other retirement systems should apply.
- Provides a one-time financial remedy for past employees who were on a J-1 visa and would have been excluded under prior rules, reducing past inequities but creating a finite, time-limited refunds window.
- Introduces coordination with other retirement systems (e.g., PERA, MnSCU, the University of Minnesota) to avoid duplication or misclassification of coverage.
Terminology and Key Concepts
- Teacher
- Teachers Retirement Association (TRA)
- St. Paul Teachers Retirement Fund Association (SPTRFA)
- Minnesota State Colleges and Universities (MnSCU/Minnesota State)
- Public Employees Retirement Association (PERA)
- Perpich Center for Arts Education
- Independent School District No. 625 (ISD 625, St. Paul Public Schools)
- Educational roles: teacher, supervisor, principal, superintendent, librarian, nurse, counselor, social worker, therapist, psychologist
- Educational administration
- Charter school director/chief administrative officer
- Unclassified position
- J-1 visa
- Licensure: Professional Educator Licensing and Standards Board (PELSB)
- Refunds of employee contributions
- Interest: 3% compounded annually
- Effective dates and deadlines: May 31, 2026; refunds issued by July 31, 2026
Relevant Terms - TRA, SPTRFA - 354.05 Subd. 2, 354A.011 Subd. 27 - ISD 625 - MnSCU / Minnesota State - PELSB - J-1 visa - Independent contractor - Annuitant - License requirements - Refund with interest - July 31, 2026 deadline
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 09, 2026 | House | Action | Introduction and first reading, referred to | State Government Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"Includes teachers and related roles in public schools (excluding ISD 625) and in charter schools or the Perpich Center for Arts Education, with transitional treatment for Perpich Center employees.",
"Includes educational administration positions in the TRA definition.",
"Specifies that certain positions at the Minnesota State Colleges and Universities system in unclassified roles may be covered by TRA.",
"Provides that part-time teaching service totaling at least 50% of combined employment may render the person a TRA member for all services with the employing unit."
],
"removed": [],
"summary": "Defines who is a 'Teacher' for purposes of the Teachers Retirement Association and lists included and excluded roles, expanding coverage to additional school contexts while excluding others.",
"modified": [
"Recasts and clarifies the definition of 'Teacher' to enumerate who is included and who is not (e.g., exclusion of University of Minnesota employees, independent contractors, annuitants, ISD 625 teachers under 354A.011(27), and J1 visa holders).",
"Implements a framework for determining TRA membership when multiple services are performed for a single employing unit."
]
},
"citation": "354.05",
"subdivision": "Subdivision 2"
},
{
"analysis": {
"added": [
"Establishes that refunds may be due to individuals who would have been excluded under clause 6 if it had been in effect at the time of their employment."
],
"removed": [],
"summary": "References a specific clause that would have excluded certain individuals from TRA eligibility, used to frame retroactive refunds for those affected.",
"modified": [
"Creates a basis for retroactive refunds tied to the hypothetical applicability of clause 6, including timing and conditions for payment."
]
},
"citation": "354.05",
"subdivision": "2, paragraph b, clause 6"
},
{
"analysis": {
"added": [
"Includes St. Paul Independent School District No. 625 staff and MnState Colleges and Universities employees with continuing TRA coverage as potential 'Teacher' candidates when appropriately licensed.",
"Requires a valid license from the Professional Educator Licensing and Standards Board for those defined as 'Teacher'.",
"Allows part-time and certain combined-employment scenarios to qualify for TRA membership, subject to Board determinations on dissimilarity to teaching."
],
"removed": [],
"summary": "Defines 'Teacher' for the St. Paul area (ISD 625) and MnState Colleges and Universities employees, with conditions for license requirements and coverage continuity; lists exceptions to the term.",
"modified": [
"Expands or clarifies who can be a TRA member in St. Paul and related higher-ed contexts, including the interplay with other Minnesota retirement plans (e.g., PRAs and 354B provisions).",
"Specifies limitations that exclude certain categories (independent contractors, full-time TRA-covered teachers, licensure-exempt educators, retirees employed post-retirement, and certain J1 visa holders)."
]
},
"citation": "354A.011",
"subdivision": "Subdivision 27"
},
{
"analysis": {
"added": [
"Refunds with interest for contributions refunded under the clause 5 scenario, aligning with Section 4’s refunds process."
],
"removed": [],
"summary": "Adds a specific refund provision tied to 354A.011(27) that governs refunds in the St. Paul context when certain eligibility conditions would have operated differently.",
"modified": [
"Links refund eligibility and payment timing to the retroactive application described in Section 4 (e.g., payment no later than July 31, 2026, with 3% annual interest)."
]
},
"citation": "354A.011",
"subdivision": "27, paragraph b, clause 5"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Clarifies which individuals are not considered teaching service under 354B.211, shaping eligibility and coverage boundaries.",
"modified": [
"Specifies exclusions from 'teaching service' for purposes of the Teachers Retirement Fund (e.g., independent contractors, full-time TRA-covered teachers, licensure-exempt staff, retirees working post-retirement, and certain J1 visa holders).",
"Aligns cross-references with the revised definitions in 354.05(2) and 354A.011(27) to determine who is or is not eligible for TRA coverage."
]
},
"citation": "354B.211",
"subdivision": "3, paragraph c.b"
}
]Progress through the legislative process
In Committee