Contribution rates are increasing this summer for two of the retirement savings plans. Both the employee and employer contributions are increasing for the MSRS General Employees Retirement Plan. The employer contribution to Teachers Retirement Association (TRA) is also increasing.
The employee and employer contributions to the Minnesota State Retirement System (MSRS) General Employees Retirement Plan are increasing from 4 percent to 4.25 percent this summer. Employees will see larger MSRS-GERP payroll deductions beginning with the August 3, 2007, paycheck (pay period ending July 24). Most classified state employees are required to contribute to the MSRS General Employees Retirement Plan.
Future MSRS contribution rate increases are scheduled as follows:
July, 2008 - 4.50%
July, 2009 - 4.75%
July, 2010 - 5.00%
The employer contribution rate for Teachers Retirement Association (TRA) members is increasing from 5 percent to 5.5 percent beginning with the July 6, 2007, paycheck (pay period ending June 26). Only the employer contribution rate is increasing this summer. The employee contribution rate increased to 5.5 percent in July, 2006, and is not scheduled for another increase at this time.
All of the above contribution rate changes were passed by the legislature in 2006 and announced in the spring and summer of 2006. No contribution rate changes are scheduled at this time for the Individual Retirement Account Plan (IRAP), Supplemental Retirement Plan (SRP), or MSRS Unclassified Retirement Plan.
Therese Mullins
Benefits Specialist
Minnesota State University, Mankato
Human Resources
336 Wigley Administration Center
Mankato, MN 56001
Phone: 507/389-6942
Fax: 507/389-2960
E-mail: therese.mullins@mnsu.edu
