Retirement savings

Your employer's retirement savings plans are an essential part of your future financial security. In addition to the mandatory pension plan offered by the Public Employees Retirement Association (PERA), you may be eligible for or required to participate in additional plans to save money for retirement.

Explore the county's deferred compensation plans to find additional ways to save for retirement.

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1% supplemental retirement

Eligibility and enrollment

  • The 1% supplemental retirement plan applies only to employees hired or re-hired before April 14, 1982, who qualified and elected to participate in the plan.
  • Enrollment was closed to new participants April 14, 1982.
  • The plan administrator is Minnesota State Retirement System (MSRS).

Plan information

Plan features, investment funds, forms, and beneficiary information can be found on the Hennepin County Supplemental Retirement / MSRS website.

Withdrawal

  • In the event of a financial hardship due to an unforeseeable emergency, you may be able to withdraw the value of your account in a lump sum upon approval by the county administrator. Employees are ineligible to participate in the program following a hardship withdrawal.
  • Withdrawals can begin any time you leave Hennepin County employment. You are not required to begin withdrawal at age 70.
  • MSRS will review the request for withdrawal and will process the payment. Contact MSRS at 651-296-2761 for withdrawal information.

Health care savings plan (HCSP)

This public employer-sponsored program allows you to save pre-tax money to pay for post-employment medical expenses and/or health insurance premiums.

Eligibility and enrollment

Your benefit eligibility, job classification, bargaining unit, and date of hire determine your plan participation. Participation is determined by your bargaining unit or by groups of employees if there are no bargaining units during negotiations with Hennepin County, with final language approval by the plan administrator,  Minnesota State Retirement System (MSRS).

Your program participation is determined by what employee group or groups you are in. The groups are: non-union employee groups by job classification, union employee groups by bargaining unit, union employees hired before or after 1/1/2008.

Non-union participants by job classification

Group 4

  • 1% gross salary, 100% stability pay, 100% severance

Group 5

  • 25% severance

Group 8

  • 1% gross salary, 100% stability pay, 50% severance

Group 12

  • 1% gross salary, 50% severance

Group 14

  • 1% gross salary, 25% severance

Group 28

  • 50% severance

Directors group

  • 1% gross salary, 100% severance

Elected department directors group

  • $100 per paycheck

Check to see what group you belong to here (XLS).

Union participants by bargaining unit

AFSCME Local 2938, Legal Unit (Public Defenders) (EEE)

  • 100% severance

AFSCME Local 552, Probation (III)

  • 100% severance if equal to or more than $200

Hennepin County Sheriff's Deputies Association (JJJ)

  • 0% severance if 15 years of service* or less
  • 50% severance if more than 15 but less than 20 years of service*
  • 100% severance if 20 years or more of service*

*Years of service is measured by the non-continuous service date in APEX

Hennepin County Sheriff's Supervisors Association (LLL)

  • 100% severance if more than $200
  • Deferred holiday and comp time hours are not included in "100% severance"

Hennepin County Professional Social Services Supervisors (MMM)

  • 100% severance if more than $200

Hennepin County Supervisors Association (QQQ)

  • Excludes job classification 718, Sheriffs Detention Sergeant
  • Employees hired prior to 1/1/2008 and did not opt out of the Early Retirement Health Insurance Program (ERHIP)
  • $10 per paycheck
  • 50% severance* if more than $400

*Severance is 50% of paid time off and 50% of sick leave hours

AFSCME Local 2938, Essential Legal Unit (Prosecutors) (WWW)

  • 50% severance

Union employees by date of hire

This group includes union employees hired after 1/1/2008. It also includes union employees hired prior to 1/1/2008 who voted to opt out of retiree health benefits to participate in the HCSP.

  • 1% gross earnings
  • Receives a lump sum contribution from the employer on anniversary date
  • More than 5 years but less than 10 years receives $500
  • More than 10 years but less than 15 years receives $600
  • More than 15 years received $700

You can participate in the HCSP in more than one group. For example, if you are in group "WWW" as an organized employee hired after 1/1/2008, you would participate in a HCSP in the following ways: 1% of salary to HCSP (hired after 1/1/2008 group); plus 50% of severance.

Plan information

Investment selection, beneficiary designation, eligible expenses, forms and more can be found at the Minnesota State Retirement System website or you can call 651-296-2761.

Contributions

In the event of an employee's death or layoff there is no severance contribution to the health care savings plan.

Reimbursements

  • Your HCSP funds can be used to pay medical expenses for you, your legal spouse, and any legal dependents as defined by the IRS.
  • Contact the Minnesota State Retirement System at 651-296-2761 or at MSRS online.

Public Employees Retirement Association

Eligibility and enrollment

As an employee, you are required by Minnesota state law to become a member of the statewide pension system, Public Employees Retirement Association (PERA). Your PERA benefits do not affect your future Social Security benefits (if eligible). In accordance with federal and state law, there is no mandatory retirement age for Hennepin County employees.

Certain employees are ineligible for PERA membership:

  • Temporary or seasonal employees who work less than six months in any calendar year
  • Part-time employees who earn less than $425 per calendar month
  • Part-time employees who are full-time students at an accredited school, college, or university

Plan information

Plan information about vesting, resignation or retirement, and more can be found on PERA's website.

Your job classification determines the PERA Fund into which you and the county pay contributions.

Coordinated fund

  • You contribute 6.25% and the county contributes 7.25% of your gross salary

Correctional fund

  • You contribute 5.83% and the county contributes 8.75% of your gross salary

Police and fire fund

  • You contribute 9.6% and the county contributes 14.4% of your gross salary
  • If you were hired after 3/31/1986, a portion of your salary is deducted for Medicare coverage through Social Security.
  • Starting 1/1/14, you will contribute 10.2% and the county will contribute 15.3% of your gross salary
  • Starting 1/1/15, you will contribute 10.8% and the county will contribute 16.2% of your gross salary

These pension funds are defined benefit plans and contribution rates may change periodically to reflect changes in benefits and funding needs.

Withdrawal

  • If you leave employment prior to vesting, you may request a refund of your contributions only.
  • If you are planning to retire you can request a pension calculation.
  • For more information, contact PERA at 651-296-7460 or at PERA online.
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