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MSU Home :: Retirement

Retirement

MSU's retirement benefits help you build long-term savings and a source of income after you retire from the University. The faculty and staff retirement plans provide opportunities for you to plan for your future today. Employees will participate in one of four retirement plans. For retirement plan details, click on one of the plans listed below. Additionally, employees may supplement their university retirement plan by contributing to a 403b retirement plan on a voluntary basis.

  • Kentucky Employees Retirement System - for employees in positions that do not require a Bachelor's Degree.
  • Kentucky Employees Retirement System-Hazardous - for Public Safety Officers and other qualified Public Safety employees.
  • Kentucky Teachers' Retirement System - (KTRS) for employees in positions requiring a minimum of a Bachelor's Degree.
  • Optional Retirement Plan - (ORP) for employees in positions requiring a minimum of a Bachelor's Degree for new employees hired after July 1, 1996.
  • Voluntary Supplemental Retirement - for employees wishing to make a voluntary contribution into a supplemental retirement plan.



Kentucky Retirement System (KRS)

For employees in positions that do not require a Bachelor's Degree.

Non-Hazardous members hired prior to September 1, 2008:
The requirements for an Unreduced Benefit are:

  • Age 65 or older, with at least 1 month of service credit may elect to receive a benefit for life that is an actuarial equivalent to twice the member’s contributions and interest.
  • Age 65 or older, with at least 48 months of service credit is eligible to receive an unreduced monthly benefit for life based on the member’s salary and service credit.
  • 27 or more years of service credit can retire at any time with no reduction in benefits.

The requirements for a Reduced Benefit are:

  • At least 25, but less than 27 years of service credit, may retire at any time, prior to age 65, with a reduction in benefits.
  • Age 55, with at least five (5) years of service credit may retire with a reduction in benefits.

Non-Hazardous members hired on or after September 1, 2008:
The requirements for an Unreduced Benefit are:

  • Age 57 or older, may retire with no reduction in benefits if the members age and years of service equal 87 (Must have five complete fiscal years of service).
  • Age 65, with at least 60 months of service credit may retire at any time with no reduction in benefits (Must have five complete fiscal years of service)

The requirements for a Reduced Benefit are:

  • Age 60 or older, with at least 120 months of service credit may retire with a reduction in benefits.
  • If a member is eligible for a reduced benefit, the amount of reduction will depend upon the member’s age or years of service at retirement.

Employee Contribution Rate 5%

Employer Contribution 38.77%

Employees with a participation date on or after September 1, 2008 contribute an extra 1% to be deposited into the Insurance Fund


Retirement income is based on member's contributions and years of service. For information on the appropriate formula to calculate monthly benefit see https://kyret.ky.gov.

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Kentucky Employees Retirement System - Hazardous 

For Public Safety Officers and other qualified Public Safety employees.

Hazardous members hired prior to September 1, 2008:
The requirements for an Unreduced Benefit are:

  • 20+ years of service credit may retire with no reduction in benefits.
  • Age 55 or older, with at least 1 month of hazardous duty service credit may elect to receive a benefit for life that is an actuarial equivalent to twice the member’s contributions and interest.
  • Age 55 or older, with at least 60 months hazardous duty service credit is eligible to receive an unreduced benefit based on the member’s salary and service.

The requirements for a Reduced Benefit are:

  • Age 50 with at least 15 years of service credit may retire with a reduction in benefits.
  • If a hazardous duty member is eligible for a reduced benefit, the amount of reduction will depend upon the member’s age or years of service at retirement.

Hazardous members hired on or after September 1, 2008:
The requirements for an Unreduced Benefit are:

  • 25 or more years of service may retire at any time with no reduction in benefits.
  • Age 60 or older, with at least 60 months of service credit may retire at any time with no reduction in benefits. (Must have at least three complete fiscal years of service).

The requirements for a Reduced Benefit are:

  • Age 50 or older, with at least 180 months of service credit may retire with a reduction in benefits.
  • If a member is eligible for a reduced benefit, the amount of reduction will depend upon the member’s age or years of service at retirement.

 

Hazardous Employee Rate (1)- 8%

Employer Rate 26.34%

Employee Rate(1) Employees with a participation date on or after September 1, 2008 contribute an extra 1% to be deposited into the Insurance Fund. 
These employer contribution rates reflect the ten-year phase-in of the insurance portion of the rate that is required by KRS 61.565(6). These CERS employer contribution rates will become effective July 1, 2013.

Effective July 15, 1998, "final compensation" for member means the three fiscal years in which the member had the highest average monthly salary. For additional information and formula to calculate monthly benefit, see https://kyret.ky.gov

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Kentucky Teachers' Retirement System (KTRS)

For employees in positions requiring a minimum of a Bachelor's Degree. Visit the KTRS website for more information.

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Optional Retirement Plan (ORP)

For employees in positions requiring a minimum of a Bachelor's Degree.

For employees in positions requiring a minimum of a Bachelor's Degree Summary:

*Available to Faculty and Administrative Staff employed on or after July 1, 1996.

  • The ORP is a defined contribution program.
  • Employees contribute 7.68%.
  • The University pays 8.74%.
  • The ORP offers immediate vesting and portability.
  • Employees have 30 days from initial employment to elect the ORP.
  • If no election is made, you are automatically enrolled in KTRS.

The ORP does not offer disability retirement or retiree group medical insurance.

Providers:

 

TIAA-CREF
Five Concourse Parkway Suite 2700
Atlanta GA 30328-6104
1-800-842-2003

VALIC
2919 Allen Parkway
Houston TX 77019
1-800-448-9033

VOYA Formerly ING
150 Fourth Avenue North
Suite 410
Nashville, TN 37219
855-ONE-VOYA

Fidelity
PO Box 770002
Cincinnati, OH 45277-0090
1-800-868-1023

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Voluntary Supplemental Retirement

Voluntary contributions may be made by payroll deduction into a supplemental retirement plan through a Salary Reduction Agreement with MSU. These contributions are pre-tax through Internal Revenue Code Section 403b and 457b.

Providers:

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