Rock Ridge Superintendent Noel Schmidt retired for one day this summer before returning to the district under a new three-year contract — just as a change in state law added a new cost for school districts employing retirees.
Schmidt’s previous contract expired June 30 and his new agreement began July 2. A new Minnesota law took effect on July 1, meaning Rock Ridge must now contribute roughly $21,500 annually to the Teachers Retirement Association (TRA) while Schmidt continues working and collecting his pension.
The Minnesota TRA office confirmed through a public records request that Schmidt was working on a retirement annuity, collecting more than $10,000 monthly toward his pension. He told Iron Range Today in an email that the one-day gap was required by TRA, but that he was on stand-by July 1 should something happen.
State statute says the district had to report his retirement to TRA, but it did not necessarily have to record his retirement publicly, according to the Minnesota data practice laws. Rock Ridge did not provide any public agenda item or discussion about the retirement, even after the May law was passed and the financial implications became clear.
“None of us had any idea a new TRA law was even being contemplated,” Schmidt said. His contract was approved Feb. 9 and the Minnesota Legislature convened Feb. 17. The new law was passed in May, and July 1 coincides with the start of the fiscal year for school districts.
Employees retiring from TRA and returning to work after the one-day hiatus is fairly common in Minnesota. Had the new state law not passed, Rock Ridge would have avoided paying the $21,500 into TRA under the retirement annuity he would be working under.
To offset the cost for Rock Ridge, the superintendent said he would also work in special education and do testing around the schools. The district can be reimbursed from special education and avoid hiring an extra testing position.
Schmidt is licensed in school psychology.
Part of the new contract highlighted school board members was that Schmidt did not take a pay increase for the 2026-2029 term, while also declining health and dental insurance, and ending a $10,000 annual retention bonus. Remaining sick time can also not be collected when he leaves Rock Ridge as superintendent.
“Yes, this is more work for me,” he said. “The net effect is that my contract will cost the district less money than the past contract.”
Details of the superintendent’s contract come as Rock Ridge the teachers union seek a resolution to its own two-year contract, a process that has stretched to over 400 days.
Budget shortfalls have complicated annual planning for school districts across the state, leading to layoffs, school closures and shifts to 4-day classroom weeks.
While Schmidt’s contract provides less direct cost to the district, the compensation package as a whole increased. He will collect $21,600 annually from a 403(b) tax-sheltered supplemental retirement savings account, which is separate from the TRA. Up to seven days of unused vacation can also be converted into the 403(b).
Total valuation of the new contract is about $742,400 for the three years, compared to approximately $680,232 in 2023-26.
Update: This story was updated at 9:35 a.m. to link a copy of the 2026-29 contract.
