Revised – Upcoming Changes to Retirement Plan Contribution Rates
Due to an error in MMB’s original notice regarding mandatory retirement rates changes, the following revision to the IRAP employee contribution rate has been made to the below message sent on July 5, 2023. All other information remains the same.
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MMB (Minnesota Management and Budget) announced that there will be some upcoming changes to the mandatory retirement plan contribution rates for IRAP, TRA, and MSRS. Due to these changes in rates, you may notice a change in your net pay.
Please see the summary of changes for each retirement plan below.
Summary of Changes:
TIAA – Individual Retirement Account Plan (IRAP):
Effective on paycheck 6/30/2023
no change in employee contribution percentage (7.10% 7.75%)
employer contribution percentage increase from 6% to 8.75%
Minnesota Teacher’s Retirement Association (TRA):
Effective on paycheck 7/14/2023
employee contribution percentage increase from 7.5% to 7.75%
employer contribution percentage increase from 8.55% to 8.75%
Minnesota State Retirement System (MSRS):
Effective on paycheck 7/28/2023
employee contribution percentage decrease from 6% to 5.5%
no change in employer contribution percentage (6.25%)
For more information on each retirement plan, visit the Retirement webpage on the Human Resources website: https://www.mnstate.edu/human-resources/benefits/retirement/