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Formerly Employees of U of M Hospital & Clinics and U of M Physicians

Certain current and former Fairview employees are eligible to receive a monthly retirement benefit  from Minnesota State Retirement System (MSRS) because they were employed by the University of Minnesota  when acquired by Fairview. Eligible employees include:

  • University of Minnesota Hospital & Clinics (UMHC) employees employed  prior to January 1, 1997

  • University of Minnesota Physicians (UMP) employees employed prior to January 1, 1998

Prior to the privatization,these employees were Minnesota public employees and therefore, contributed to the General Employees Retirement Plan (General Plan) administered by MSRS.  Employees are eligible for a monthly pension benefit when they reach retirement age.


Enhanced Augmentation
While former UMHC / UMP employees may be eligible for a pension plan under the General Plan, state law provides a higher (enhanced) augmentation so that  employees are able to maintain the value of their pension plan following privatization.

Think of augmentation like compounding interest that increases the value of your benefit every month that you wait to start collecting your benefit. When you apply for your pension, MSRS will calculate your benefit based on your current age and then increase (or augment) at the compounding annual rates in the table below. 

Enhanced augmentation schedule
Important! The 2018 Omnibus Retirement Bill removed deferred augmentation as a benefit for all public pension plans. As a result, the UMHC/UMP enhanced augmentation will gradually be phased out. Additional augmentation will not accrue after December 31, 2024. You will remain entitled to any augmentation accrued up to that point.

Year Agumentation up to age 55 Augmentation age 55 & older
1997-2018 5.50% 7.50%
2019 4.50% 4.50%
2020 3.75% 3.75%
2021 3.00% 3.00%
2022 2.25% 2.25%
2023 1.50% 1.50%
2024 0.75% 0.75%
2025 No additional augmentation will accrue after 12/31/2024


Eligibility for enhanced augmentation:

  • Transferred from the UMHC to Fairview Health Services on Jan 1, 1997; or from UMP to Fairview Health Services on Jan 1, 1998.

  • If under age 62, must terminate employment with Fairview before eligible to collect a pension with enhanced augmentation.

  • Do not need to remain an employee of Fairview to be eligible for enhanced augmentation.

Subsequent Public Employment
Former UMHC / UMP employees who accepts a position covered by a Minnesota public pension plan will receive no less than the value of their enhanced augmentation pension upon retirement.

Other Unique Plan Features
With the exception of the plan features described below, former UMHC/UMP employees who are eligible for an MSRS pension plan follow the provisions of the General Employees Retirement Plan.

Vesting Requirements Vesting is the amount of time you need to work in public employment in order to qualify for a pension plan benefit. Former UMHC / UMP employees are vested with any amount of covered service. They do not require three years of service, which is the normal vesting period for those hired before July 1, 2010.
Retirement Age Normal (full) and early retirement age is the same as all other employees covered by the General Plan with the following exception: Former UMHC / UMP employees who started covered employment before July 1, 1989 are eligible for Rule of 90 (your age plus years of service equals 90). Time spent employed with Fairview counts toward Rule of 90 credit. Private employment with any other employer does not count toward Rule of 90 credit.
Benefit Calculation

Retirement benefits are calculated under the law in effect on a member's last working day as a public employee. Your benefit calculation is based on the high-five salary, length of service, and benefit formula you qualified for at that time, plus the enhanced augmentation that has accrued on your account since then.

Last working date as public employee:

  • Former UMHC employees - December 31, 1996
  • Former UMP employees     - December 31, 1997