Use this page to compare primary and voluntary retirement plan offerings from the University of Minnesota. Many employees will automatically be enrolled in the Faculty Retirement Plan or the MSRS pension, and you may choose to supplement your savings with a voluntary retirement plan.
If you're wondering why it may be a good idea to move any eligible funds you have to a University voluntary plan, keep in mind that you won't pay any brokerage account fees through Fidelity.
All information for 2024 calendar year unless noted.
Primary Plans
Faculty Retirement Plan (1989 and after) & MSRS
| Feature | Faculty Retirement Plan, 401(a) (post-89) | Minnesota State Retirement System (MSRS) |
|---|---|---|
| Eligibility | Generally, faculty and P&A who work 26.75 standard hours per week in appointments of at least 9 months in duration. | Generally, Civil Service and Labor Represented staff, excluding LELS, police officers, and UEA faculty members. |
| Contribution Rate | Employed Pre-Jan. 1, 2012: 2.5% employee, 13% University; employed Post-Jan. 1, 2012: 5.5% employee, 10% University |
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| Maximum annual contributions | $69,000 for those hired before 1996; $53,475 for those hired after 1996 (15.5% of $345,000 maximum compensation limitation) | None |
| Contribution rate changes | Not permitted—mandatory plan | Not permitted—mandatory plan |
| Recordkeepers (*=discontinued contribution) |
| Defined Benefit Plan—assets managed by the State Board of Investment |
| Loans | Not available | Not available |
| Access to funds while employed | Withdrawals at age 62 | Not available |
| Distributions | At termination, retirement, or death. This plan provides for various forms of benefit, including lump sums, installments, and various forms of annuities, depending upon the investment contract. Withdrawals and distributions prior to age 59½ may be subject to a 10% additional tax penalty. ** | At termination, retirement, or death. Lump sum refund of employee deductions plus 6% interest up to 6/30/11, then 4% to 6/30/18, is available at termination. Various forms of annuity are available for deferred benefit, which is available.** |
| Required minimum distributions (RMDs) | April 1 of the year following the later of age 73 or termination of employment | n/a |
Faculty Retirement Plan (Pre-1989)
| Feature | Faculty Retirement Plan, 403(a) (pre-89) |
|---|---|
| Eligibility | None |
| Contribution rate | None |
| Maximum annual contributions | None |
| Contribution rate changes | None |
| Recordkeeper (*=indicates discontinued contribution) |
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| Loans | Not available |
| Access to funds while employed | Withdrawals permitted after age 59½** |
| Distributions | At termination, retirement, or death. This plan provides for various forms of benefit, including lump sums, installments, and various forms of annuities, depending upon the investment contract. Withdrawals and distributions prior to age 59½ may be subject to a 10% additional tax penalty.** |
| Required minimum distributions (RMDs) | Pre-Jan. 1, 1987: April 1 of the year following the later of age 75 or termination of employment; post-Dec. 31, 1986: April 1 of the year following the later of age 73 or termination of employment |
**Withdrawals and distributions not made due to financial hardship or minimum distribution requirements may be rolled over to other qualified retirement plans or individual retirement accounts (IRAs), as permitted by law.
Voluntary Plan Comparison
| Feature | Optional Retirement Plan (ORP) | 457 Deferred Compensation Plan |
|---|---|---|
| Eligibility | Any employee paid on a continuous basis. Students and non-resident aliens are excluded. | Any employee paid on a continuous basis. Students and non-resident aliens are excluded. |
| Contribution rate |
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| Maximum annual contributions |
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| Contribution rate changes | As of any pay period, may cease at any time. | As of any pay period, may cease at any time. |
| Recordkeepers (* indicates discontinued contributions) |
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| Loans | Available through Fidelity only. | Not available. |
| Access to funds while employed | Withdrawals permitted for any reason after age 59½, or due to qualifying financial hardship.** | Only permitted due to qualifying unforeseen emergency, or in de minimus amounts after two years with no contributions. |
| Distributions | At termination, retirement, or death. This plan provides for various forms of benefit, including lump sums, installments, and various forms of annuities, depending upon the investment contract. Withdrawals and distributions prior to age 59½ from the ORP may be subject to a 10% additional tax penalty.** | At termination, retirement, or death. This plan provides for various forms of benefit, including lump sums, installments, and various forms of annuities, depending upon the investment contract. Withdrawals and distributions from the 457 Deferred Compensation Plan are not subject to a 10% penalty.** |
| Required minimum distributions (RMDs) | Pre-Jan. 1, 1987: April 1 of the year following the later of age 75 or termination of employment; post-Dec. 31, 1986: April 1 of the year following the later of age 73 or termination of employment. | April 1 of the year following the later of age 73 or termination of employment. |
**Withdrawals and distributions not made due to financial hardship or minimum distribution requirements may be rolled over to other qualified retirement plans or individual retirement accounts (IRAs), as permitted by law.