We have moved some of the most commonly asked questions from the Facebook group to this page. Everything that is asked has value and it is important that we are all on the same page. All the answers you read come from those the are acting as admin on the Facebook page. Thanks for visiting and for being informed.
Question: A friend of mine recently visited TRA and went over the benefit numbers with a TRA Counselor, and here is what he emailed…
I reach the rule of 90 age this coming year. If I was a Tier 1 teacher, 1 year earlier, I would be looking at just over $6,000 a month benefit. Because I missed Tier 1 by 1 year, my benefit would only be $2700 a month. To me, this is lunacy.
Answer: How did this happen? In 1989 the MN Legislature went after a group that did not quite exist yet… The Future or Tier II Educators of MN, and since it did not affect any of the current teachers (Tier I Educators), TRA Board, EdMN, MASSP, or MESPA Members, there was little or no fight because, again, it did not affect any current educators or the effects would not be felt for 30 years or so. In the 1990s and early 2000s, TRA and the legislature made some really, really poor decisions regarding contribution rates and colas. They are NOW fixing these issues by burdening CURRENT TIER II Educators with past mistakes. How? By making Tier II educators work up to a decade longer than their Tier I counterparts. They pay more in contributions than their tier I counterparts. They are slated to have smaller Colas than most Tier I counterparts when they finally retire.
Tier I Folks have been in leadership positions on the MN TRA Board forever. Again this year, the TRA Board voted in Tier I members into ALL leadership positions. President Martha “Marti” Zins has been on the TRA Board Since 1989 and has been there while the decisions that burdened us (tier II educators) were made. For example, in 1997, they gave 10.1% COLAS to Retirees and only collected 10% in contributions combined from the employees and state. We Tier II educators will be paying the highest contribution rate in history this next year to try to make up for their decisions.
If this bothers you, please email the TRA Board Members and ask for Tier II Leadership on the TRA Board. It is a Two- Class System that has only one class leading.
Minnesota TRA Board –> CLICK HERE <– to email them all with one click of the mouse.
WDruggeWuensch@minnesotatra.org
laurena.schlottach-ratcliff@state.mn.us
Question: When are the TRA Board Meetings held?
Answer: –> Click Here <– to visit the official page and read the minutes from the previous meetings. All board meetings are held at 9:30 a.m. in the TRA offices at 60 Empire Dr., Suite 400, St. Paul, unless otherwise indicated.
Question: How can I help spread the word and get more people involved?
Answer: There is a Sample Letter link in the menu bar on this page. Copy it and send it to all your colleagues. Visit the website and share the address with all your colleagues. Send an email to a colleague in another district and encourage them to save the information. Every teacher in the state is connected one way or another. 6 hops and I bet we cover them all.
Question: What is the path to getting legislation passed and fixing MN Public Pension?
Answer: We have to convince a legislator to write a bill then The LCPR has to hear the bill and vote to forward it to the house and senate that both have to pass it… then the governor has to sign it… nowhere in that process do we get to negotiate…. So you push for something that has a chance to pass…. TRA will be advising legislators the entire way…. The best you can do is get a or many legislators to support our bill/cause. I think they need to be focused on how far we are below average to keep them from focusing on a price tag
Question: The TRA STORY OF BILL AND JIL
Answer: To Highlight the difference in lifetime retirement earnings between Tier I and Tier II, here is the TRA Story: two people come out of college. Bill was hired as a social studies teacher on July 31st, 1989, after serving as the JV Golf Coach that spring, and Jill was hired as a Math instructor on July 29th, 1989. They are the same age (Hired at 22 years of age). Through his coaching, Bill contributed to TRA in June 1989. They are hired by the same district, climb the salary scale in sync, and are at the bottom right on their pay scale. Bill retires with the rule of 90 at age 56 (34 years worked) and is drawing a pension of 50,000.00. Jill Retires at 62 (40 years worked). They both passed away on the same day at 80 years of age.
Now, if you want to add to the story, Bill is hired back by the school district @ 90,000.00 per year, making his income 140,000 (50,000 Pension income) vs. Jill’s 90,000 and BILL is paying no TRA contributions, and most of Jill’s employer’s contribution is going to pay for Tier I retirements.
TRA Executive Team Members have been asked for the numbers for this scenario. Still, they have not responded yet, so I’m reaching out to the Math folks in our group… Below are two unofficial estimates for the TRA Sory of Bill and Jill from our membership … Please look at it and give me your estimate of the difference in lifetime earnings for Jill and Bill. WE truly want TRA input so the story is as accurate as possible, but I will continue with or without it. The TRA Board has discussed fiduciary responsibility to ALL stakeholders over the last 7 Months. This does not look like fiduciary responsibility. That is only the opinion of this Tier II educator.
Both of these Members gave me multiple scenarios, and I only used the ones that showed the least difference between Tier I Bill and Tier II Jill. These are not official MN TRA estimates but were created by our Facebook group members… Again, I have requested TRA’s input but have not heard back from them.
#1 Facebook Members Estimates for Bill and JILL…
With 1% COLA’s, she’ll take in $320,000 less than Bill (despite working 6 years longer and contributing $46,000 more). This does Not Factor in the employer benefit contribution that will be near 49,000.
With 1.5% COLA’s, the disparity is $355,000
With 2% COLA’s, the disparity is $398,000 (hey, buy a nice little lake cabin Bill, and invite Jill, because she won’t be able to get one).
Note that with 1% COLA’s, Bill’s yearly benefit has grown to $53,076 the same year Jill finally gets her first benefit payout of $52,451.
That’s right, Jill works 6 years longer, contributes $46,000 more, and starts with a pension paying less than Bill. It is appalling. That is what the overly punitive “discounts” do, even if you wait until 62/30.
Tier I- Rule of 90 Tier II 62/30 retirement
Bill (80 years old) Jill (80 years old)
34 Year Working Life 40 year working life
24 years of retirement 18 years of retirement
Full Benefits Earned 14.5% Penalty for NOT working until 66
+320,000.00 earnings
Bill paid 46,000.00 less in TRA contributions
In the 6 years that Jill is working, she has no extra earning potential for those six years.
Bill has unlimited earning potential In education w/o having to pay TRA Contributions.
A second Facebook Member used the same scenario and came up with Bill Earning 277,000 more in our TRA Story.
So the figures are not exact, but the Facts are… as a Tier II educator, you will contribute much more, get much less, work much longer, and have fewer retirement years!