Plan Comparison

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 2022 calendar year unless noted.

Primary Plans

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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
  • 6% employee
  • 6.25% University
Maximum annual contributions

2022: $61,000 for those hired before 1996; $47,275 for those hired after 1996 (15.5% of $305,000 maximum compensation limitation)

2023: $66,000 for those hired before 1996; $51,150 for those hired after 1996 (15.5% of $330,000 maximum compensation limitation)

None
Contribution rate changes Not permitted—mandatory plan Not permitted—mandatory plan
Investment providers (*=discontinued contribution)
  • Fidelity
  • Securian*
  • TIAA*
Defined Benefit Plan—assets managed by the State Board of Investment
Loans Not available Not available
Access to funds while employed Withdrawals Not available
Distributions At termination, retirement, or death. All plans provide 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 72 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
Investment providers (*=indicates discontinued contribution)
  • Fidelity*
  • Securian*
  • TIAA*
  • Vanguard*
Loans Not available
Access to funds while employed Withdrawals permitted after age 59½**
Distributions At termination, retirement, or death. All plans provide 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 72 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
  • No minimum
  • 100% maximum
  • Percentage of pay or flat dollar amount
  • No minimum
  • 100% maximum
  • Percentage of pay or flat dollar amount
Maximum annual contributions

2022:

  • $20,500 if under age 50
  • Plus $6,500 if over age 50 (maximum of $27,000)

2023:

  • $22,500 if under age 50
  • Plus $7,500 if over age 50 (maximum of $30,000)

2022:

  • $20,500 if under age 50
  • Plus $6,500 if over age 50 (maximum of $27,000)

2023:

  • $22,500 if under age 50
  • Plus $7,500 if over age 50 (maximum of $30,000)
Contribution rate changes As of any pay period, may cease at any time. May cease at any time. May enroll or change deductions prior to the beginning of the month in which the change is effective.
Investment providers (* indicates  
discontinued 
contributions)
  • Fidelity 
  • Securian* 
  • TIAA* 
  • Vanguard* 
  • T. Rowe Price*
  • Fidelity
  • TIAA*
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. All plans provide 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. All plans provide 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 72 or termination of employment. April 1 of the year following the later of age 72 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.