Security in employment includes a strong retirement plan. The members of APA are eligible for a long-term plan to save for retirement. Retirement benefits and eligibility are bargained by APA and can be found in the Collective Bargaining Agreement between MSU-APA and Michigan State University (http://lay.wyz.mybluehost.me/wp-content/uploads/2012/05/APA2011-2015.pdf).
Eligibility
A regular staff member can begin contributing and accruing retirement funds upon employment
Retirement Plan Structure
The retirement plan is a 403(b) Base Retirement Program for regular staff working half-time or more. The employee contributes 5% of salary and the University contributes 10% of the employee’s base salary or wage. The contributions are made on a tax-deferred basis.
Participation in the program is optional until the employee reaches age 35, when the contributions are required. A member may delay participation for up to twenty-four (24) full-time equivalent (FTE) service months from their date of hire or to the 35th birthday, whichever is later.
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Eligibility for Retirement
An official retiree requires a minimum of 15 or more years of service and at least age sixty-two (62) or twenty-five (25) years of service at any age.
Eligibility for Retirement Health Benefits
Employees meeting the minimum official retirement requirements (and hired prior to 7/1/10)
will receive a University contribution toward health, prescription, and dental coverage. The level of University contribution will be determined by the employee’s full-time equivalent (FTE) service months at retirement (Article 7, Employment Status, MSU-APA/MSU Collective Bargaining Agreement).
| Employees hired prior to 7/1/02 | University contribution toward the premium will applyto health, prescription, and dental coverage for theretiree, spouse, and eligible dependents. |
| Employees hired on orafter 7/1/02 and prior to7/1/10
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University contribution toward the premium will applyto health, prescription, and dental coverage for the retiree only. The retiree may elect to continue coverage for spouse and eligible dependents by paying the applicable premium. |
| Employees hired on orafter 7/1/10 | The retiree may elect to continue coverage for the retiree, spouse, and eligible dependents by paying the applicable premium. |
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Additional Contributions for Employees Hired After July 1, 2010
For regular employees hired on or after July 1, 2010, the employer will make additional contributions to the MSU 403(b) Base Retirement Program. A one-time lump sum contribution will be made at the completion of 60 months of active regular continuous service; the employer will contribute to the employee’s 403(b) Base Retirement Program an amount equal to 2.5% of the employee’s annual wage calculated as of June 30th prior to the contribution.
After the 60th month (5 year time equivalent) time period through 120th month (10 year time equivalent) the University will contribute to the 403(b) Base Retirement Program an amount equal to one-half (1/2) percent of the employee’s annual wage, calculated as of June 30th prior to the contribution, for each year of regular service.
After the 121th month (10 year time equivalent) the University will contribute (3/4) percent of the employee’s per pay period salary to the MSU 403(b) Base Retirement Program.
Additional Benefits Upon Retirement
Sick Leave Payout, Article 24
Full-time employees meeting the University’s minimum retirement requirements shall be paid for 50% of unused sick leave, but not to exceed a maximum of 50% of up to 1,200 hours, as of the effective date of separation.
Longevity Payment, Article 28
Full-time employees who terminate before October 1 who are 65 years of age and have five (5) or more years of full-time service, or who meet the minimum University retirement requirements will receive a prorated longevity payment.
Applying for Retirement
Prior to applying for retirement, please confirm your full-time equivalent service months and eligibility. You can then apply online: http://www.hr.msu.edu/benefits/retirement/SSInstructForm.htm
More Information
You can find more information and resources on the MSU Human Resources website
http://www.hr.msu.edu/benefits/retirement/SSConsider.htm
If you have any further questions on retirement, please contact the APA office at (517) 353-4898 or e-mail [email protected].