Under provisions of Minnesota law, most state employees are members of a state retirement plan. Classified employees are enrolled in a defined benefit plan with the Minnesota State Retirement System (MSRS) General Plan. Employees contribute 5 percent of gross salary and the university contributes 5 percent.
Unclassified employees are enrolled in one of several retirement funds – MSRS General Plan or Unclassified Plan, Teachers Retirement Association (TRA), or the Defined Contribution Retirement (DCR) Plan. Both the employee and the university make contributions to the employee’s retirement fund. The amount of contribution is determined by the fund. Effective with the third year of full-time employment for unclassified employees, a 5 percent of gross compensation in excess of $6000 will be deducted for the Supplemental Retirement Plan. The amount of supplemental deduction is determined by the bargaining agreement. The university matches the employee’s contribution to this fund.
There is no mandatory retirement age for employees. Employees are eligible to draw retirement benefits upon retirement at age 55 or older or after 30 or more years of state service. Employees participating in a defined benefit plan (TRA or MSRS General Plan) must complete a minimum of 3 years of state service to draw retirement benefits. If state service is terminated prior to three years of service, a refund of the employee’s contribution can be requested. A proportionate annuity is available for employees in a defined benefit plan with as little as one year of service provided they work until age 65 or over. There is an immediate vesting period for participants in a defined contribution plan.
MSRS and TRA send annual Statements of Account to active members. The investment providers send quarterly statements to DCR Plan participants.