Civil Service and non-faculty bargaining unit employees are covered by the Minnesota State Retirement System (MSRS) in the General Plan. Participation is mandatory and begins from the first day of employment — there is no waiting period.

Retirement deductions are 4.25% of total salary and are paid into the General Plan. This money is credited to the employee's individual MSRS account and is tax sheltered from both federal and state income tax. The employer contribution — 4.25% of total salary — is not credited to individual accounts. It is used to help pay the monthly annuities and benefits received from the General Plan. Rates are subject to change by the Legislature.

MSRS contribution rate increases on July 1.

A bill passed in the 2006 Legislative Session included a pension provision to build up MSRS's funding level. As a result, the General Plan rates for employee and employer contributions will increase from 4.0% to 5.0% over four years beginning July 1, 2007.

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• Vesting & Early Retirement
• Annuity Choices