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
• Pre-tax deduction of 4.25% of total salary each pay period
• Amount is credited to your individual MSRS account
• Additional 4.25% 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

Your Contribution

The tax-deferred deductions from both your paycheck and from the University will increase annually through 2010:

• On July 1, 2008: increase to 4.50%
• On July 1, 2009: increase to 4.75%
• On July 1, 2010: increase to 5.00%

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

Learn More about MSRS

Click on the picture below to watch an online presentation about MSRS.

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