Your
foundation for retirement
Your Guide
to retirement.
Planning for retirement is important!
We want to make sure you fully understand your retirement benets
and options before you retire and submit your paperwork to
Minnesota State Retirement System (MSRS).
This guide provides information to help you prepare for retirement,
a summary of the process to apply for benets, the forms you need
to complete and a general overview of your pension.
The information provided in this guide does not amend or overrule any applicable statute or administrative rules.
In the event of a conict, the applicable statute or administrative rule will prevail.
About MSRS
MSRS administers multiple retirement plans that provide retirement, survivor and disability benet coverage
for Minnesota state employees, the Metropolitan Council, and many non-faculty employees at the University of
Minnesota and the Minnesota State university system.
MSRS covers over 56,000 active employees and currently
pays monthly benets to over 44,000 retirees and survivors.
Other Plans Administered by MSRS
Minnesota Deferred Compensation Plan (MNDCP)
A voluntary retirement savings plan available to all
Minnesota public employees.
Health Care Savings Plan (HCSP)
A tax-free medical savings plan to be used after you leave
public employment for reimbursement of out-of-pocket
medical expenses.
Sources of Benet Information
MSRS retirement counselors are a valuable source of information and assistance regarding your benets.
They can explain plan provisions, provide you with a benet estimate and counsel you regarding your benet
rights and options. Here are some other sources of MSRS benet information:
• Plan handbooks and videos – available on the MSRS website
• Benet statements - sent to you each year near your birthday
• Educational seminars and workshops - offered throughout the year at multiple locations
• Newsletters
For more information, please visit our website:
www.msrs.state.mn.us
MSRS retirement counselors are not registered investment advisors and cannot offer nancial, legal or tax advice.
Please consult with your nancial planner, attorney and/or tax advisor as needed.
Our Mission
We empower Minnesota public employees
to build a strong foundation for retirement.
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Preparing for Retirement
Retirement is in sight. By the time you are within 12 months from
retirement, it is important that you have a realistic understanding
of your retirement income needs and expenses to plan effectively.
Use the timetable below to help you prepare for retirement.
12 months
to retirement
6 months
to retirement
3 months
to retirement
• Contact MSRS for an • Discuss your benet • Ensure that purchases/
audited estimate of your estimate and payment transfers of prior service
retirement benets. options with your family are complete.
Ask about survivor
coverage options.
•
and nancial advisor.
Prepare a retirement
• Notify your department
personnel ofce
• Attend a free MSRS budget. Compare your regarding your intention
retirement seminar. retirement expenses to retire. Find out when
•
•
•
Review MNDCP
distribution options
available at retirement.
Gather information to
prepare your retirement
budget.
Calculate your expected
Social Security income.
•
against your
MSRS
benet, Social Security,
MNDCP
and any other
retirement income that
will be available to you.
Contact your employer
about health and life
insurance options
available after you retire.
•
you should submit a
letter of resignation.
Contact your local
Social Security ofce
to le for benets (if
age 62 or older and are
eligible for benets).
• Check to see if you are
eligible for severance
pay. If so, determine if
it will be deposited in
the MSRS Health Care
Savings Plan (HCSP)
account.
IMPOR TANT!
Review your MSRS benet statement and contact MSRS if you nd any discrepancies.
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Other Resources
As a Minnesota public employee, you may receive benets administered by various providers. You
may enroll in some or all of them. Use the list below as a guide to coordinate your benets.
Public Employees Retirement
Association (PERA)
Teachers Retirement
Association (TRA)
Social Security
Administration
Retiree health, dental, & life
insurance benet information
Minnesota Deferred Compensation
Plan (MNDCP)
Health Care Savings Plan (HCSP)
University of Minnesota
tax-sheltered benet program
If you are covered by multiple Minnesota
public retirement plans, the service credit
earned from all plans can be combined
with your MSRS service to qualify for
additional retirement benets. This is
called a Combined Service Annuity (CSA).
For information, estimates, or to apply for
your benets, contact the Social Security
Administration 90 days prior to your
retirement date if you are age 62 or older
at retirement.
Contact your agency/department
designated insurance representative
regarding health, dental, and life
insurance coverage.
Contact MSRS for plan information &
payout options.
Payouts cannot begin until after you
leave employment or retire.
Plan information & withdrawal options
PERA:
651-296-7460 or 1-800-652-9026
TRA:
651-296-2409 or 1-800-657-3669
PERA: www.mnpera.org
TRA: www.minnesotatra.org
Social Security:
www.ssa.gov
State Employees-
Minnesota Management
& Budget (MMB):
651-355-0100
University of MN Employees -
Employee Benets Ofce:
612-624-9090 or 1-800-756-2363
Metropolitan Council-
Benets One Line:
651-602-1601
MSRS Retirement Counselor:
651-296-2761 or 1-800-657-5757
MSRS Website:
www.msrs.state.mn.us
University of MN Employees -
Employee Benets Ofce:
612-624-9090 or 1-800-756-2363
REMEMBER, when
you apply for retirement
MSRS may not be the
only administrator you
will need to contact.
-
Application Process
for Your Retirement
Benets
Forms to complete and documents to provide:
1. Application for Retirement (required)
You must sign the application in the presence of a notary. If you are married, your spouse must
sign the application in the presence of a notary to acknowledge the benet option you selected.
IMPOR TANT!
MSRS will NOT accept your application more than 60 days in advance of your retirement date.
2. Direct Deposit Agreement (optional, but recommended)
Monthly payments can be deposited into your bank account through direct deposit. It is the
safest, fastest, and most convenient way to receive your monthly payment. Generally your
benet is sent to your nancial institution the rst business day of each month. If you do not
want direct deposit, a paper check will be mailed to you. You can sign up for direct deposit when
you apply for a monthly benet or any time in the future.
3.
Birth records (required for you and your survivor)
Payments cannot begin until you provide MSRS with a copy of your birth record. In addition,
if you select a survivor option, you must provide a copy of your survivor’s birth record. Please
write your MSRS Account ID or Social Security number on your survivor’s birth record.
To obtain birth records:
n
If born in Minnesota: any local Registrar ofce or online at www.health.state.mn.us
n
If born in another state: www.cdc.gov/nchs/w2w.htm
4.
Copy of your marriage certicate (required, if applicable)
5. Certied copy of divorce decree and/or domestic relations order (required, if applicable)
During a marriage dissolution proceeding, the court may decide to divide the assets of the
MSRS retirement plan between the parties. If you are currently divorced, or have been divorced,
you must provide MSRS with certied copies of divorce decrees and/or domestic relations order
(DRO) before you can collect a retirement or disability benet, even if the assets will not be
divided between the parties. For more information on how divorce may affect your benet,
please contact MSRS.
6.
Authorization for Insurance Premium Deductions (optional, but must meet eligibility requirements)
The Pension Protection Act of 2006 allows certain retired and disabled public safety ofcers and
judges to reduce taxable income by up to $3,000 annually to pay qualied insurance premiums.
If you are a public safety ofcer, you may choose to have qualied medical, dental, or long-term
care insurance premiums deducted from your retirement benet.
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Considerations After You Retire
Benet Payments
n
First benet payment: You will receive your rst benet payment from MSRS about SIX WEEKS after
your benet start date. Please plan accordingly. The rst benet payment is typically higher because it
includes retroactive payments back to your benet start date.
n
Payment schedule: Monthly payments will be available in your bank account the rst business day of each
month if you signed up for direct deposit. If you receive payment by check, add ve business days for mailing time.
n
Annual benet increase: Each January you may be eligible to receive a benet increase. Depending on when you
retired, there could be a waiting period for your rst increase and the increase may be prorated. You will receive a
letter each December to conrm your benet increase amount.
n
Service with another Minnesota public employer: If you had service with another Minnesota public employer
(for example, TRA or PERA) and are eligible for additional benets, you will receive a separate benet payment
from that retirement plan provider. Please contact your other retirement plan provider to learn how and when those
benet payments will be made.
Income Tax Reporting
All or most of your monthly benet is subject to federal and state income taxes. Each January, MSRS will send
you a Form 1099-R. This form shows the total benet payments you received during the previous year; the
amount that is taxable income; and the amount withheld for federal or Minnesota state taxes, if any.
Re-Employment After You Retire
For many, retirement means pursuing a second career. Perhaps it is a hobby that you pursue as a paid
position. Maybe it means returning to work, but working fewer hours or part-time. Your MSRS monthly
benets do not stop if you are employed by private industry, federal or local government, or a state
government other than Minnesota.
If you return to a position covered by MSRS, retirement deductions will not be withheld from your salary.
You may be subject to an earnings limitation. Contact MSRS for more information.
You will receive your
rst benet payment
from MSRS about
SIX WEEKS after
your benet start date.
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Questions?
Contact the MSRS Service Center:
1.800.657.5757 or 651.296.2761
Go online:
www.msrs.state.mn.us
Email us:
[email protected]
Make an appointment to speak to
a retirement representative at one
of our ofces.
Locations
St. Paul - Main Ofce
60 Empire Drive, Suite 300
St. Paul, MN 55103
Monday – Friday
8 a.m. - 4:30 p.m.
Additional Ofces
Addresses and hours of operation available online.
• Duluth • Mankato
• St. Cloud • Detroit Lakes