Retirement Plans at �the University of Minnesota�����John Brentnall & Jeff Altringer�Office of Human Resources� � �

University of Minnesota Retirement Plans for P&A

Retirement Plan Recordkeeper

Fidelity Investments

Account online: netbenefits.com

800-343-0860

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Free individual consultations available!

fidelity.com/schedule

Mandatory Retirement Plan

Academic Professional and Academic Administrative (P&A) employees who work at least 26.75 hours/week for not less than 9 months at the University are covered by the mandatory University of Minnesota Faculty Retirement Plan (FRP), a defined contribution (DC) plan

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*MSRS in rare cases due to job transfer or reclassification

FRP Contributions

Participating in FRP after 1/1/2012:

employee contribution = 5.5%

employer contribution = 10%

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Participating in FRP prior to 1/1/2012:

employee contribution = 2.5%

employer contribution = 13%

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FRP Contributions

• The employee portion of the FRP contribution is taken from paychecks on a pre-tax basis.
• The FRP employee contributions do not count against your annual deferral limits, as the University technically “picks up” these contributions.
• Incoming rollovers are allowed
• No taxation until you take a distribution.

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FRP Provisions

• Immediate eligibility
• 100% vesting
• Default investment: Target Date Fund
• Normal Retirement Age is 62, distributions allowed then if you remain employed
• No loans or hardship withdrawals
• Distribution options include lump-sum, installments, annuity payments
• Plan is subject to Required Minimum Distributions (RMDs)

Voluntary Retirement Plans

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• Optional Retirement Plan (ORP)

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• 457 Deferred Compensation Plan

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Optional Retirement Plan

• 403(b) plan available to most University employees
• Employee contributions only (annual IRS limit depends on your age: $23,500, $31,000, or $34,750 for 2025)
• Pre-tax and Roth deferrals are allowed
• Loans are available
• In-service distributions allowed at age 59½, financial hardship, or up to $1,000 emergency withdrawal after 4/1/25
• Incoming rollovers are allowed
• Required Minimum Distributions (RMDs)

457 Deferred Compensation Plan

• 457(b) Plan available to most University employees
• Pre-tax and Roth salary deferral only (annual IRS limit depends on your age: $23,500, $31,000, or $34,750 for 2025)
• No loans
• In-service distributions for unforeseen emergency only or up to $1,000 emergency withdrawal 4/1/25
• No early withdrawal penalty
• Incoming rollovers are NOT allowed
• RMDs

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Notes for Voluntary Plans

• Roth In-Plan Conversions are available
• Contributions can be made as a percent of salary or flat dollar amount
• Early withdrawal penalty applies to ORP before age 59 1/2, not 457
• Emergency withdrawals and post-employment contributions allowed

Retirement Plan Investments

• 3-Tier Investment Structure
• Tier 1: JP Morgan Target Date Funds
• Tier 2: 11 core mutual funds
• Tier 3: Brokerage window (mutual funds only)

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HSAs

• Administered by HSA Bank
• Health Savings Accounts (HSAs) can be used to save for future qualified medical expenses if you are enrolled in the high-deductible health plan
• Employees can contribute up to $4,300 (under age 55) or $5,300 (55+) for individual coverage and $8,550 or $10,550 for family coverage in 2025
• Limits include University contributions

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Resources

• z.umn.edu/retirement
• One-on-one consultations are also available through LSS Financial Counseling
• Fidelity and LSS provide financial related webinars
• OHR events: z.umn.edu/ohrevents
• University retiree insurance: z.umn.edu/preparingforretirement

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Questions or Comments

The University of Minnesota is an equal opportunity educator and employer.