Faculty and P&A Retirement Plan
Faculty members and Professional and Academic (P&A) staff can save for retirement through the Faculty Retirement Plan (FRP), which is a 401(a) retirement plan for tax-deferred contributions.
- Who Can Participate
- When Do You Join the Plan
- How Much You Invest
- Pre-Tax Savings
- Investment Company Contact Information
- Faculty Retirement Investment Results and the Faculty Retirement Subcommittee
Faculty Retirement Plan Website Update
If you participate in the Faculty Retirement Plan with Securian Retirement, you'll notice that Securian's website was updated this spring. As a Securian client, you will be asked to re-register when you go online for the first time. At that time, you will have the option to add dual-authentication (two-step) for additional online security, if you choose.
The Faculty Retirement Plan is for employees with an appointment of at least nine months who are:
- Faculty Members: Regular (tenured, tenure-track) faculty members and term faculty members (contract, temporary) in the job classification 9401 through 9499, with appointments of at least 26.75 hours per week are eligible. Faculty members with "visiting" or "adjunct" prefixes, or clinical faculty from outside the University, are not eligible to participate.
- Administrative Staff: Administrative staff members with at least 26.75 hours per week appointment and with job classifications 9301 through 9399 are eligible. Campus Operations and Protection Deputy Chief, Lieutenant 1, and Lieutenant 2 (9358DC, 9358L1, 9358L2) and staff members filling administrative positions on an acting basis are not eligible.
- Professional Staff: Professional staff members with 26.75 hours per week or greater appointments with job classifications 9701 through 9799 are eligible, except for Research Specialist (9755), Clinical Preceptor (9756), and Industrial Fellow (9757).
- Extension Services: University of Minnesota Extension Service (MES) academic staff with at least 26.75 hours per week appointments, job classifications 9621 through 9640, who are not eligible for a federal appointment. MES academic staff holding appointments between 26.75 to 39.99 hours per week, who are not eligible for a federal appointment, can participate on a pro-rated basis.
If you hold an appointment between 26.75 to 39.99 hours per week, your participation is prorated.
Eligible employees will participate in the plan as of the first day of the first full pay period in an eligible appointment.
If you started at the University after January 2, 2012, you contribute 5.5% of covered salary and the University contributes 10%. These are required contributions and participation is mandatory. Academic employees who started before that date contribute 2.5% of covered salary, while the University contributes 13%.
Covered salary includes:
- Basic appointment salary
- Administrative augmentation
- Commutation allowance
- Regents' Professor stipend
- Nine-month appointee summer research and summer session instructional earnings
All other earnings are excluded.
Federal tax law limits combine employee and employer contributions to the plan, which are subject to cost-of-living increases. The contribution limits are based on when you joined the plan and the limit for the current year:
- Before 1996: Your contribution limit is $54,000 for 2017.
- After 1996: Your contribution limit is $41,850 for 2017 (or 15.5% of covered compensation up to $270,000).
You defer or delay paying income tax on your contributions to the Faculty Retirement Plan. This happens by reducing your salary by an amount equal to your contribution. The result is that the University makes the full contribution to the plan for you. In turn, your federal and state taxable salary is reduced, giving you an immediate tax advantage. Since your contributions to the retirement plan will be made with "before tax" dollars, your income from the plan will be subject to federal and state income tax when you receive it.
All funds in the plan are fully vested, so University contributions, your contributions, and any investment earnings belong to you with no waiting period. You may not assign the benefits or borrow against them if you're a participant in the FRP.
Securian Retirement Services (2007 to present)
- Website: https://umnplans.securian.com/umnpart/core/login.htm
- Phone: 651-665-3670 or 800-421-3334
- Address: 400 North Robert Street, St. Paul, MN 55101
- Plan Number: Faculty Retirement Plan--1130
TIAA (before 2007)
- Website: tiaa.org/umn
- Phone Number: 800-842-2776
- Address: 730 Third Avenue, New York, NY 10017-3206
- Plan Number: Faculty Retirement Plan--100970
- Quarterly Investment Performance Results (September 30, 2016)
- One Year Performance Results (September 30, 2016)
The Retirement Subcommittee, of the Senate Committee on Faculty Affairs, provides feedback and recommendations about the Faculty Retirement Plan. The subcommittee provides some questions and resources to help you to think about your investments and retirement planning. Read the Faculty Retirement Subcommittee 2017 letter (pdf).