University of Minnesota
Office of Human Resources

Civil Service and Bargaining Unit Retirement Savings Plan

As a member of the University's civil service or union-represented staff, you participate in the Minnesota State Retirement System (MSRS) program.

Highlights of the MSRS Program

  • Mandatory participation
  • Begins immediately; no waiting period
  • Tax-deferred deduction of 5% of total salary each pay period
  • Amount is credited to your individual MSRS account
  • Additional 5% contributed by the University per employee
  • You earn service credit for each month retirement deductions are withheld from your pay
  • Eligibility to receive an annuity is based on age and service credit
  • You are vested after three years of service with MSRS
  • Vesting allows you a lifetime annuity as early as age 55

Retirement Benefits Calculation

Your benefit at retirement is based on a formula of:

  1. The average of your five successive years of highest earnings
  2. Years of service
  3. Age at retirement

Leaving the University before Retirement

If you leave the U before retirement you can:

  • Take a refund of your contributions plus 6% interest
  • Roll over your deductions to an IRA or a qualified retirement plan and incur no tax or penalty
  • If you have more than three years of service, you can keep your contributions in the plan and collect an annuity benefit at retirement

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