The Hennepin County 1% Supplemental Retirement Plan is a voluntary, non-qualified plan created for Hennepin County employees. The plan is written in Minnesota Statute 383B.46.

Minnesota State Retirement System (MSRS) is the plan administrator.

Enrollment closed to new participants on April 14, 1982.

Eligibility / Contributions

The 1% supplemental retirement plan applies to Hennepin County employees hired or re-hired before April 14, 1982, who qualified for and elected to participate in the plan. Enrollment closed to new participants on April 14, 1982.

Contribution rates for the Hennepin County 1% Supplemental Retirement Plan are established by Minnesota State law.

Employee Contributions

  • 1% of after tax-salary.
  • Taxed when deducted from the paycheck; therefore, not subject to taxation when withdrawn from the account.

Employer Contributions

  • 1% of employee's pre-tax  salary.
  • Contributions are pre-tax, meaning that portion is taxable income when withdrawn from the account. For more detail, see the Distributions section on this page.

Fees / Expenses

Administrative Fee
Each participant shares in the cost of the services the Plan offers. The annual administrative fee is 0.05% of your account balance.

The fee is deducted pro rata from your investment options the middle of each month and is calculated on the average daily account balance for the prior 30-day period.   

Annual Investment Expenses
Annual investment expenses are charged by the State Board of Investment (SBI) and are subject to change. This fee is deducted before the calculation of the daily price per share or the fund's performance return. The investment expenses are disclosed on the Investment Performance (pdf) report.

Beneficiary / Death

Beneficiary designation
You cannot designate a beneficiary. In the event of your death, the account balance will be paid in the following order as specified by MN Statute 383B.49:

a.   surviving spouse
b.   if no spouse, surviving minor children (under the age of 18)
c.   if no spouse or minor children, participant’s estate

Participant's death
Shares will be redeemed to the spouse, minor children, a trust, or representative of the estate.

If survived by a spouse, must complete an Application for Transfer of Ownership form. The account balance is transferred to account for surviving spouse.

Was participant receiving multiple-year payments?

  • If YES, the surviving spouse will continue that payment schedule after they take ownership of the account. For example, if the participant was receiving annual payments for a 5-year period and died after three payments had been made, the spouse will continue receiving payments for the remainder of the 5-year period.

  • If NO, the surviving spouse should complete the Application for the Redemption of Shares form to take a lump sum payment or multiple-year distributions. 

If NOT survived by a spouse, 100% of the account balance will be paid to a trust or the personal representative of the estate. Representative of the estate or trust should contact MSRS to request the appropriate distribution form.

Tax reporting: Payments made to a spouse/non-spouse beneficiary are reported on a 1099-MISC. The form is mailed by January 31 of the year following any withdrawals.


You can invest in any combination of the investment options offered by the plan. You can choose an investment mix that balances your risk tolerance with the opportunity for investment returns.

Contributions are automatically invested in the Vanguard Total Bond Market Index Fund. You can change how future contributions are invested or transfer all or a portion of your existing account balances at any time. Please consider investment objectives, risks, fees, and expenses carefully before investing.  Neither MSRS nor the State of Minnesota guarantees investment performance or assumes any liability for any investment losses.


Contact Us

Telephone: 651-296-2761 or 800-657-5757

                    Office hours: Monday through Friday, 8:00 a.m.- 4:30 p.m.


Participant inquiries: Complete this form to email MSRS your questions, comments or feedback

Request appointment with MSRS retirement counselor

Address:  60 Empire Drive, Suite 300
                 St Paul  MN 55103


Representatives of GWFS Equities, Inc. are not registered investment advisors and cannot offer financial, legal or tax advice. Please consult with your financial planner, attorney and/or tax advisor as needed.