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Vesting
Vesting
You are vested after three years of service with MSRS. Vesting entitles you to a lifetime annuity as early as age 55 or at retirement.
If you leave state service before you are vested, (less than three years of service) you can either:
- take a refund of your retirement contributions plus 6% interest (subject to 10% tax penalty if you are under age 59 and 20% federal income tax),
- or roll over your deductions to an IRA or a qualified retirement plan and incur no tax or penalty.
If you leave state service after you are vested you can either leave your contributions with MSRS and collect your annuity at retirement or choose one of the above options.
Early Retirement
You can apply for early retirement at age 55 and receive an annuity if you have at least three years of allowable service. There are a number of different calculations used for early retirement depending on the formula used, and the time you were hired. Please call Employee Benefits at 612-624-9090 if you are considering retirement. A counselor can give you personal assistance in calculating your benefit.
Rule of 90
The Rule of 90 allows an individual to retire earlier than the normal retirement age without a reduction in benefit. To qualify you must:
- have been hired before July 1, 1989 and
- your age and years of service must total at least 90 years
Normal retirement age is 65. If you do not have the years of service and age to qualify for the Rule of 90, your benefit will be reduced by 3% per year for each year that you retire before you turn age 65.
Employee Benefits
- 100 Donhowe Building
- 319 15th Avenue S.E.
- Minneapolis, MN 55455
- 612-624-9090
- 800-756-2363
- 612-626-0808 (fax)
- benefits@umn.edu