We get asked “What is tier 1?” “What is tier 2?” “What am I?”
Let first talk about the TIERS and how they determine how your pension will be paid out.
Tier I – These educators were ALL HIRED BEFORE July 1, 1989. That means you can pull your FULL pension once your age and years of service, when added together equals 90. For many this means age 56 with 34 years of service.
Tier II – These educators were ALL HIRED AFTER July 1, 1989. That means you can pull your FULL pension on your 66th birthday. A decade longer than those that are labeled as Tier I. Over 90% of those that are actively teaching in MN fall under Tier II. If you are reading this, you are most likely a Tier II and be penalized by the board that is elected and appointed to look after you and have you in their best interests.
If you are Tier II and go earlier than 66 you will be penalized based on the following graph below.
What Tier Am I in Regards to My License??
Now, let’s talk about the four tiers that are tied to your licensure. This is completely different so do not confuse the two. The four license tiers are based off your education and other contributing factors.
These have NOTHING to do with your Tier based on your hire date nor do they have an affect on your Tier in regards to your pension. That is discussed above.
