MSRS - Post-Retirement Benefit Increases

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Last Updated: 05/27/2009

Home >> General Plan >> Benefit Increases

Post-Retirement Benefit Increases

The law provides for an annual retirement benefit increase. Beginning January 1, 2011, the annual benefit increase is as follows:

2 percent for all retirement plans administered by MSRS except the State Patrol Retirement Plan.
1.5 percent for the State Patrol Retirement Plan

The first benefit increase occurs seven to 18 months after you retire, and always on January 1. The increase is prorated based on the number of full months you were retired during the previous fiscal year, which ends June 30.

Examples of the prorated increase amount

Example 1: Retirement date is March 10. You will receive a prorated benefit increase the following January.

The increase is based on your three months of retirement during the previous fiscal year - April, May and June - which amounts to three-twelfths (.25) of the full increase. Assuming a 2% increase, your first benefit increase will be .50% (2% x .25). For State Patrol, the first increase will be .37% (1.5% x .25).

Example 2: Retirement date is December 20, 2010. You will receive a prorated benefit increase January 2012.

The increase is based on six months of retirement during the previous fiscal year - January through June - which amounts to six-twelfths (.50) of the full increase. Assuming a 2% increase, your first benefit increase will be 1% (2% x .50). For State Patrol, the first increase will be .75 % (1.5% x .50).

After the initial prorated increase, retirees will receive the full benefit increase amount in subsequent years.

Retirees will receive a letter in December notifying them of the post-retirement benefit increase that will occur in January.

Frequently Asked Questions

Increase History

Post Fund Archive

Minnesota State Retirement System
60 Empire Drive, Suite 300, St. Paul, MN 55103-3000
Telephone: (651) 296-2761, Toll Free: (800) 657-5757, Fax: (651) 297-5238
E-Mail: info@msrs.us
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An Equal Opportunity Employer