MSRS - Unclassified Retirement Plan Report

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Last Updated: 07/24/2007

	Home >> General Information >> Summer 2007 Unclassified Report >> Law extends time

	Law extends time to convert from Unclassified to General Retirement Plan

	Thanks to a law the 2007 Legislature passed, qualified participants in the Unclassified Plan have more time to convert to the General Retirement Plan. Participants must decide to transfer previous Unclassified Plan service no later than one month after ending state service. Previously, Unclassified Plan participants had to decide before ending state service. The change in law gives participants more time to make this important decision. Who is qualified? Participants with at least ten years of state service may transfer all previous Unclassified Plan service into the General Retirement Plan. Participants in unclassified positions may also convert to the General Plan during the first year of service. These options are not available for judges, legislators or elected officials. How are benefits calculated? A key difference between the General Retirement Plan and the Unclassified Plan is how MSRS calculates a participant's benefits. The Unclassified Plan bases a participant's monthly benefit on their account value and age at the time payments start. The General Retirement Plan uses a set formula to determine a participant's monthly retirement benefits. The formula uses years of service, high-five salary, and age at retirement. Why switch Plans? Making the decision to switch from the Unclassified to the General Retirement Plan depends on how a participant's investments have performed over their career. A good market will mean a better total rate of return in the Unclassified Plan and may provide a higher benefit than the General Retirement Plan. Other factors to consider Disability and survivor benefits are often higher under the General Retirement Plan. If a participant's health condition changes, call our office to discuss options. Since a participant can wait until 30 days following termination of state service, it is often better to remain in the Unclassified Plan until closer to retirement. More information For more information, visit our website at www.msrs.state.mn.us or call us at 651-296-2761 or toll-free at 1-800-657-5757. Return to the Summer 2007 Unclassified Report.

Minnesota State Retirement System
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