Use this page to compare primary and voluntary retirement plan offerings from the University of Minnesota (see the Overview webpage for general information about the plans). Many employees will automatically be enrolled in the Faculty Retirement Plan or the Minnesota State Retirement System (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 2026 calendar year unless noted.
Primary Plans
Faculty Retirement Plan (1989 and after) & MSRS
Feature | Defined contribution plan: Faculty Retirement Plan, 401(a) (post-89) | Defined benefit plan: 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 students, police officers, and UEA faculty members (refer to your collective bargaining agreement for more information) |
Contribution Rate |
(If participating pre-Jan 2, 2012, 2.5% employee, 13% University) |
|
Maximum annual contributions | $72,000 for those hired before 1996; $55,800 for those hired after 1996 (15.5% of $360,000 maximum compensation limitation) | Not applicable |
Contribution rate changes | Not permitted—mandatory plan | Not permitted—mandatory plan |
Recordkeepers (*=discontinued contributions) |
| MSRS |
Investments | You can choose where to invest funds. | You cannot choose where funds are invested. Plan assets are managed by the State Board of Investment.
|
Vesting | Immediate 100% ownership of University contributions | Three years of MSRS service credit to receive a future monthly pension benefit |
Loans | Not available | Not available |
Access to funds while employed | Withdrawals not available until age 59½ | Not available |
Distributions | At termination, retirement, or death. Participant chooses withdrawal options, such as lump sum, 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. ** Benefit payout is based on account balance. | At disability, termination, retirement, or death. Lump sum refund of employee deductions plus interest, is available at termination. Various forms of annuity are available for deferred benefit, which is available.**
Pension payments are based on years of service credit, the highest five consecutive years of eligible pay, and the age you start collecting your pension. |
Required minimum distributions (RMDs) | April 1 of the year following the later of age 73 or termination of employment | Not applicable |
Frozen Faculty Retirement Plan (Pre-1989)
Feature | Frozen Faculty Retirement Plan, 403(a) (pre-89) |
|---|---|
Eligibility | None |
Contribution rate | None |
Maximum annual contributions | None |
Contribution rate changes | None |
Recordkeeper (* indicates discontinued contributions) |
|
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 sum, 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), 403(b) | 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. |
Contribution types |
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Recordkeepers (* indicates discontinued contributions) |
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Rollovers | Incoming rollovers allowed | Incoming rollovers allowed |
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.** Distributions from any dollars rolled into the plan are also allowed. | Withdrawals permitted for any reason after age 59½, qualifying unforeseen emergency, or in de minimus amounts after two years with no contributions. Distributions from any dollars rolled into the plan are also allowed. |
Distributions | At termination, retirement, or death. This plan provides for various forms of benefit, including lump sum, 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 sum, 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) | For pre-tax funds: 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. For Roth funds: Reach out to Fidelity or your financial advisor to discuss. | For pre-tax funds: April 1 of the year following the later of age 73 or termination of employment.
For Roth funds: Reach out to Fidelity or your financial advisor to discuss. |
**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.