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:
- The average of your five successive years of highest earnings
- Years of service
- 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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