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HF 4069

Teachers Retirement Association; definition of teacher modified, and employee contribution refunds required.

2025-2026 Regular Session Introduced by Sandra Feist

The bill redefines who qualifies as a “teacher” for TRA and SPTRFA, and offers refunds with 3% interest to those who would have been excluded under the new rules.

Introduction and first reading, referred to State Government Finance and Policy
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Bill Summary · HF 4069

Summary of HF 4069 (2025-2026) – Minnesota

Purpose and intent

HF 4069 aims to modify who is considered a “teacher” for purposes of eligibility in the Teachers Retirement Association (TRA) and the St. Paul Teachers Retirement Fund Association (SPTRFA), and to authorize targeted refunds of employee contributions for certain workers who would have been excluded under the revised definitions. The bill also sets an effective date for these changes and for the refunds.

Key provisions and changes

1) Definition of “Teacher” (TRA) — Section 1

  • The statute (Minnesota Statutes 2024, § 354.05, subd. 2) would be amended to redefine who qualifies as a “teacher” for TRA purposes.
  • The amended definitions include:
    • Individuals in traditional teaching and related roles (teacher, supervisor, principal, superintendent, librarian, nurse, counselor, social worker, therapist, psychologist) in public schools (excluding certain districts), charter schools, or the Perpich Center for Arts Education (with an exception for certain Perpich employees who were previously covered by a separate retirement plan).
    • Administrators in state public school system education.
    • Charter school directors or chief administrative officers (with a clause about coverage if already in another retirement plan as of 2018).
    • TRA employees.
    • Part-time teaching employees who, if the teaching portion is at least 50% of the combined employment salary with the same employing unit, become members for all services with that unit (or if less than 50%, the executive director determines full coverage for all combined service).
    • Employees in certain unclassified positions within the Minnesota State Colleges and Universities system (e.g., presidents, vice-presidents, deans, managers, etc.) in specific circumstances.
  • The bill also adjusts exclusions, notably adding:
    • A change to exclude individuals on certain visa status: specifically, citizens of countries other than the United States employed on a J-1 visa (new in subd. 2(b)(6)).

2) Definition of “Teacher” (SPTRFA) — Section 2

  • The statute (Minnesota Statutes 2024, § 354A.011, subd. 27) would be amended to align SPTRFA definitions with TRA changes.
  • The revised definition would cover:
    • ISD 625 (St. Paul) employees in licensed teacher roles (full-time or part-time) or part-time roles with teaching duties that may be combined with non-teaching duties, subject to board determination about substantial dissimilarity.
    • SPTRFA employees located in St. Paul.
    • Minnesota State Colleges and Universities employees with continuing coverage under this chapter as specified.
  • Exclusions would include:
    • Independent contractors or their employees.
    • Full-time teachers covered by TRA.
    • Some licensure-exempt workers.
    • Individuals already receiving a TRA retirement annuity who are employed post-retirement by a district related to the retirement fund (and, in addition, J-1 visa workers are again excluded).

3) Refunds of employee contributions for J-1 visa workers — New sections (Section 3)

  • The bill introduces two new refund provisions:
    • TRA refunds: The TRA executive director must refund employee contributions made by any teacher employed as of May 31, 2026, who would have been excluded from TRA eligibility under the new definition (354.05, subd. 2, par. (b), cl. (6)) if the clause had been in effect when employed. Refunds must be issued with:
    • Interest compounded annually at 3% from the date of each contribution to the last day of the month before the refund issuance.
    • A deadline of July 31, 2026.
    • SPTRFA refunds: The SPTRFA executive director must refund employee contributions made by any teacher employed as of May 31, 2026, who would have been excluded from SPTRFA eligibility under the updated 354A.011, subd. 27, par. (b), cl. (5) if the clause had been in effect when employed. Refunds must use the same interest and deadline (3% annual compounding; issued by July 31, 2026).

4) Effective date — Section 4

  • Sections 1–3 become effective on July 1, 2026.

Who would be affected

  • Current and prospective employees who would be newly classified as or excluded from membership in TRA or SPTRFA due to the revised definitions of “teacher” (including certain individuals working in St. Paul ISD and in Minnesota State Colleges and Universities).
  • Specifically, workers on a J-1 visa who would be newly excluded under the revised definitions.
  • Administrative bodies: TRA and SPTRFA executive directors would implement the refunds if the criteria are met.

Procedural and timeline notes

  • Introduction and referral occurred in March 2026.
  • Effective date for the statutory changes and the refund provisions: July 1, 2026.
  • Refunds required for eligible employees must be issued by July 31, 2026, with interest compounded at 3% annually from the contribution date.

Potential impact highlights

  • Financial: Some employees previously contributing to TRA/SPTRFA would be refunded their contributions (plus 3% annual interest) if they would have been excluded under the new definitions.
  • Membership: The definition changes could broaden or narrow retirement plan eligibility in TRA and SPTRFA, affecting future accruals and benefits for certain employees, especially those in non-traditional teaching roles or with visa status considerations.
  • Administrative: Requires precise implementation by TRA and SPTRFA to identify eligible individuals and process timely refunds.

Compiled from official sources — confirm details with the bill’s official record.

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