MSUM helps employees build an income for their retirement years, through both mandatory and voluntary plans. Eligibility for the regular and supplemental mandatory plans is based on a combination of employee appointment and employee status information.
Unclassified Retirement Plans: for IFO, MSUAASF & Administrators
Unclassified employees (.25 FTE and above) participate in either the Individual Retirement Account Plan (IRAP) or Teacher Retirement Association (TRA). Full-time employees also participate in the Supplemental Retirement Plan after completion of two years of employment. New employees have one year to review the provisions of the IRAP and TRA plans to determine retirement plan choice.
- Minnesota Teacher's Retirement Association (TRA)
- TRA is a defined benefit plan (401(a)), which upon retirement, provides you with a monthly benefit for your life based on a formula that includes your final high-five average salary, years of allowable teaching service and age at retirement. TRA requires a minimum of three years participation for vesting and provides a guaranteed lifetime annuity.
- TIAA - Individual Retirement Account Plan (IRAP)
- IRAP is a defined contribution plan in which retirement benefits are based on the dollar amount in your account at retirement. Your account, which includes your contributions, employer contributions, and investment earnings, is yours beginning on the date of your first contribution. You make all the investment decisions, and you can change the investment funds as often as allowed by the fund managers.
- Supplemental Retirement
- Participation in SRP is mandatory following two years of full-time covered service regardless of whether you participate in IRAP or TRA. SRP is a defined contribution plan with the same investment vendors as IRAP plan. The employee contributes 5% of salary after the first $6,000 up to a maximum set by your collective bargaining agreement.
Classified Retirement Plans: for AFSCME, MAPE, MMA, Commissioner's Plan, Managerial Plan
- Minnesota State Retirement System (MSRS)
- Classified employees participate in the Minnesota State Retirement System (MSRS) General Plan which is a defined benefit plan with all investments managed by the State Board of Investment. MSRS requires a minimum of five years participation for vesting and provides a guaranteed lifetime annuity to eligible retirees
Optional Retirement Plans: for all employees
- TIAA - Tax Sheltered Annuity (403b)
- A tax sheltered annuity program is a voluntary retirement savings program available to employees of educational institutions. Tax sheltered annuities are often referred to as 403b’s-- the IRS code section that regulates this type of plan. This plan allows a Roth option for contributions. This program is managed by TIAA-CREF. There is a minimum of $10 per paycheck.
- MSRS - Deferred Compensation Plan (457)
- The State of Minnesota Deferred Compensation Plan is a voluntary plan that allows employees to place a portion of earnings into a tax-deferred investment program under section 457 of the Internal Revenue Code. This program is managed by the Minnesota State Retirement System (MSRS). There is a minimum contribution of $10 per paycheck.