Purpose

• Expand and clarify who is considered a “teacher” for retirement plan purposes and to address eligibility gaps created by visa status and certain job classifications.
• Create retroactive refunds for teachers on a J-1 visa who would have been excluded from eligibility under the current definitions, if those definitions had been in effect when they were employed.

Main Provisions and What the Bill Seeks to Accomplish

• Redefine “Teacher” for the Teachers Retirement Association (TRA) to include:
  • Individuals who provide teaching-related services (e.g., teacher, supervisor, principal, superintendent, librarian, nurse, counselor, social worker, therapist, psychologist) in public schools, charter schools, or the Perpich Center for Arts Education.
  • Specific administrators (e.g., educational administrators) and charter school directors or chief administrative officers, with exceptions if those individuals are covered by another retirement plan as of July 1, 2018.
  • Employees of the TRA or those who teach part-time but also perform other services for the same employing unit, with a 50% teaching service threshold determining coverage for all services.
  • Certain unclassified employees of the Minnesota State Colleges and Universities system (e.g., presidents, vice presidents, deans; managers or professionals in specified programs; administrative or service-support faculty; teachers or research assistants), with further exclusions.
  • Note: The definition excludes independent contractors, annuitants reemployed after retirement in TRA, University of Minnesota employees, board/officers of retirement plan employers, ISD No. 625 teachers, and J-1 visa citizens in some contexts.
• Redefine “Teacher” for the St. Paul Teachers Retirement Fund Association (STP TRFA) to cover:
  • ISD 625 (St. Paul) teachers who are full-time with a teaching license, part-time with a license, or part-time with a license while also performing non-teaching duties (subject to board determinations about overall teaching relevance).
  • MnSCU employees with continuing coverage under related provisions.
  • Exclusions mirror TRA changes (e.g., independent contractors, full-time TRA-covered teachers, licensure-exemption, retirement annuity recipients, ISD 625 non-teachers in certain contexts, and J-1 visa citizens).
• Clarify who is not considered a “Teacher” under these sections, including:
  • Independent contractors or their employees, reemployed TRA annuitants, University of Minnesota employees, governing board officers of TRA-participating employers, ISD No. 625 employees in non-teaching roles, licensure-exemption cases, retirement recipients working in covered roles, and J-1 visa citizens in certain situations.
• Refund provisions for retroactive eligibility gaps:
  • TRA must refund employee contributions to teachers employed in TRA-covered positions on May 31, 2026 who would have been excluded from TRA eligibility if the new definition had been in effect when they were employed, with 3% annual interest from each contribution date to the refund date, due by July 31, 2026.
  • STP TRFA must provide similar refunds for eligible teachers employed in STP TRFA-covered positions, with the same interest calculation and deadline.

Notable Changes to Existing Law

• Introduces a broader, more complex definition of who qualifies as a “teacher” for TRA and STP TRFA coverage, potentially increasing retirement-plan eligibility for more education-related positions (including some administrators and certain unclassified college employees) and clarifying exclusions.
• Establishes retroactive refunds for certain workers on J-1 visas who would have been excluded under the prior definitions, effectively providing a one-time catch-up payment of contributions plus interest.
• Adds explicit exceptions and conditions relating to other retirement systems (e.g., Minnesota State Retirement System, Public Employees Retirement Association) and specific employers (e.g., Perpich Center, ISD 625, MnSCU), creating clearer boundaries about which plan covers which employees.

Practical Implications and Who It Affects

• Public schools, charter schools, and related education entities may see changes in who is eligible for TRA or STP TRFA coverage.
• Some administrators and college/university staff in unclassified roles could gain retirement-plan coverage previously unclear or excluded.
• Teachers and staff who were working on a J-1 visa and would have been excluded may receive a retroactive refund of contributions if they meet the specified criteria by the 2026 deadline.
• Employers and retirement boards will need to review eligibility determinations, adjust records, and process refunds by the stated deadlines.

Timeline and Administrative Details

• Refunds for TRA and STP TRFA-eligible individuals must be issued by July 31, 2026.
• Refunds apply to contributions made by teachers employed on May 31, 2026, who would have been excluded under the pre-change definitions.
• The 3% annual interest is applied from the date of each contribution to the issuance date of the refund.

Notable Terms and Concepts (for quick reference)

• Teacher Retirement Association (TRA)
• St. Paul Teachers Retirement Fund Association (STP TRFA)
• Minnesota State Retirement System (MSRS)
• Public Employees Retirement Association (PERA)
• Perpich Center for Arts Education
• Independent School District No. 625 (St. Paul)
• charter school
• Licensed positions and the Professional Educator Licensing and Standards Board (PELSB)
• J-1 visa
• Unclassified positions in MnSCU (Minnesota State Colleges and Universities)
• 354.05, 354A.011 (and related subdivisions)
• refunds of employee contributions
• interest rate: 3% annually
• May 31, 2026
• July 31, 2026

Relevant Terms - TRA, STP TRFA, MSRS, PERA - Teacher, teacher definition - ISD 625, St. Paul - Perpich Center for Arts Education - charter school - J-1 visa - Professional Educator Licensing and Standards Board (PELSB) - employee contributions, refunds, interest - 354.05, 354A.011, 354B.211 (and related sections)