Employee retirement

Learn about retirement benefits for county employees.

Submit the retirement or resignation form in APEX (select the Salary, Personal, and Job Info tile)

View the retirement planning checklist

Open all

Required retirement plan

Retirement plan required of most employees

County employees are required to take part in the retirement savings plan.
The plan is managed by the Public Employees Retirement Association (PERA).
Money comes out of your paycheck pre-tax.
The county also contributes a separate amount.
When you retire, you get a monthly payment for the rest of your life (pension).
Your payment is based on your age, earnings and years of service.
You automatically become a member of PERA.
You don't have to do anything to create an account.

Automatic paycheck deductions and county contributions

Most employees

The deduction is 6.5% gross salary plus a 7.5% county contribution (14% total).

Correctional employees

The deduction is 5.83% gross salary plus a 8.75% county contribution (14.58% total).

Police and fire employees

The deduction is 11.8% gross salary plus a 17.7% county contribution (29.5% total).

Withdrawal rules

You can't withdraw money from the PERA account while still employed by the county.
If you leave the county before you retire, you can get a refund or leave the money in.
A refund includes your contributions plus interest.
A refund doesn't include the county's contribution.

Exceptions to participation

Some employees aren't allowed to take part in the PERA plan based on their job status.

Retirement education

Read information about PERA retirement conferences and workshops.

Contact

Visit the PERA website or call 651-296-7460.

Other required plans

Health care savings plan

Certain employee groups (union and nonunion) are required to enroll in the health care savings plan and enrollment is automatic. Money comes out of your paycheck pre-tax to pay for post-employment health care premiums and other costs. The money covers costs for you, your spouse, children up to age 26 and any dependents.

For more information, contact Minnesota State Retirement System at 651-296-2761 or 1-800-657-5757. You can also:

1% supplemental retirement plan (closed to new enrollees in 1982)

1% supplemental retirement plan only applies to employees hired or re-hired before April 14, 1982, who qualified and chose to take part in this plan. Enrollment closed April 14, 1982.

The plan administrator is Minnesota State Retirement System (MSRS). To request a hardship withdrawal, contact MSRS at 651-296-2761 or 1-800-657-5757.

Optional retirement plan

Overview of deferred compensation

Like a 401(k) plan, deferred compensation is a way to save for retirement.
Deferred compensation lets you set aside money pre-tax, after-tax or both.
The county doesn't contribute separate money into your deferred compensation plan.
You can only withdraw the money if you retire, resign or need the money for a financial hardship.
Once you retire, you can leave the money in or withdraw it.

Amount you can set aside

You can set aside as much money into deferred compensation as the IRS allows:

If you are under age 50, the yearly limit is $20,500.
If you are over age 50, the yearly limit is $27,000.
Within three years of normal retirement age: each of the three years you can set aside up to $41,000. Contact your vendor for amount.

View a one-minute video on deferred compensation (YouTube).

Enrolling in deferred compensation

1. Choose and contact a vendor to set up an account

Fidelity (Plan No. 93811)

Call 1-800-343-0860 or visit the Fidelity website.

Minnesota Deferred Compensation Plan

VOYA (Plan No. 664372)

Schedule an appointment with an Investment Advisor Representative:

Nic Romero: nic.romero@voya.com / 612-342-3909
Dana Stein: dana.stein@voya.com / 612-342-3781

Visit the VOYA website.

2. Review guidelines

You can use more than one vendor. For example you can have after-tax contributions with one and pre-tax contributions with another.

You can change vendors and transfer money from one to another.

Meeting with vendors is on your own time.

Learn more about the process:

3. Use online form to start contribution after account is set up

Complete and submit the online form located on the APEX Benefits tile > Deferred Compensation > Enroll/Change Deferred Comp.

Once you're enrolled in deferred compensation

You can increase, decrease or stop your contributions any time. Complete and submit on-line form located on the APEX Benefits tile > Deferred Compensation > Enroll/Change Deferred Comp.

Rollovers from other employers

To roll money over:

Set up a deferred compensation account with a county vendor.
Ask for rollover paperwork from the county vendor.
Ask for rollover paperwork from your former employer’s vendor.
Scan and email your paperwork to hr.servicecenter@hennepin.us.
We’ll sign and return your paperwork to the county vendor.

Note: you can only withdraw rollover money when you retire, resign or need the money for a financial hardship.

Withdrawals from your deferred compensation account

You can only withdraw the money when you retire, resign or need the money for a financial hardship — you must get approval for the hardship withdrawal.

The approval process depends on the vendor.

Fidelity or VOYA

Email HR benefits at hr.servicecenter@hennepin.us to ask for a hardship withdrawal application. We’ll contact you about next steps.

Minnesota Deferred Compensation Plan

Call 651-296-2761.

1% supplemental retirement fund

This plan is for employees hired before April 14, 1982. Call the Minnesota State Retirement System at 651-296-2761.

Pre-retirement planning

Choosing your retirement date

Choose your retirement date six to 12 months ahead of time.
Everything you do to prepare for retiring depends on your retirement date.

Using your remaining paid leave

Check the balance of your paid leave in APEX.
You can take a maximum of 280 hours of your remaining time off before you retire, with your supervisor’s approval. As of January 1, 2022, this practice will end. Retiring employees will no longer be able to run out PTO or vacation before their retirement date. This includes retirement dates that fall on January 1, 2022.
You can also divert the cash value of your remaining paid leave into your deferred compensation plan.
For health care savings plan members, all or part of any remaining paid leave automatically goes into your plan.

Sick leave and vacation

Payouts depend on how long you've worked at the county:

At least eight years: You receive pay for up to 800 unused hours (lifetime cap) of vacation and sick leave.
Less than eight years: You receive pay for up to 280 unused hours of vacation only. Sick leave is not paid out.

Paid time off (PTO)

You receive pay for up to 480 unused hours.
If you converted to PTO from sick leave and vacation: You receive pay for up to 800 unused hours (lifetime cap) and up to 480 unused hours of PTO.

County pre-retirement seminars

You can attend a seminar on county time with your supervisor’s approval.
Spouses are welcome.
Register in APEX > Learning Tile > Search Catalog > type "Pre-retirement Planning Seminar" into the search box.

Upcoming seminars

Seminars are held virtually. A Teams meeting invite with information about the seminar will be sent to enrollees in the week prior to the seminar.

See offerings in APEX to register.

Retirement education

The Public Employees Retirement Association (PERA) offers individual or group retirement conferences and workshops. Attendance is on your own time.

Learn more about PERA retirement conferences and workshops.

Retirement checklist: two to three months before you retire

Giving notice

Submit the retirement or resignation form in APEX (select the Salary, Personal, and Job Info tile)

Setting up PERA payments

Complete the PERA application form (PDF) and send directly to PERA.
Complete Part A of PERA verification of termination form (PDF) and enter your retirement date. Scan and email it to hr.servicecenter@hennepin.us.

Continuing insurance after you retire

Options for continuation of benefits is part of the retirement form.
After submitting the form, you’ll get a letter describing the benefits and their cost.

Using the health care savings plan and 1% Supplemental Retirement Plan

Deciding how to use your deferred compensation

Choice 1: Withdraw the money

Ask your vendor for withdrawal paperwork.
Scan and email the completed form to hr.servicecenter@hennepin.us.
We’ll sign and return the paperwork to your vendor after we issue your check for unused vacation, sick and PTO.

Choice 2: Leave the money in

Choice 3: Contribute the cash value of your remaining paid leave (sick time, vacation and PTO) into your plan

If you don't have a deferred compensation plan you can set one up before you retire.
The cash value has a small amount of taxation before going into your deferred compensation plan.

Before your retirement date, email HR Service Center at hr.servicecenter@hennepin.us with:

Your name and ID number
Retirement date
Amount of after-tax money going into the plan and which vendor
Amount of pre-tax money going into the plan and which vendor

Applying for Medicare (employees 65 and older)

If you’re applying for Part B of Medicare, you must submit a completed Request for Employment Information form to Social Security. You will receive a completed form from HR after you submit the retirement form in APEX.
Select a Medicare supplement plan. The county sponsors a Medicare plan through Medica. Call 952-992-2345 or visit Medica's website. For information about other plans, contact Senior Linkage Line at 1-800-333-2433.

Submitting expenses for trade time for fitness and flexible spending accounts

Flexible spending accounts close the day you retire.
Send in any outstanding trade time for fitness expenses.
You can only use money in the account for expenses you had while actively working.

Cancelling transit cards

MetroPass: cancel in APEX and return your card to HR benefits at mail code 040 by the 23rd of the month you retire.
Go-To Card deduction and Mobility Fare card deduction: cancel in APEX.

Printable checklist

Review the checklist for the two to three months before you retire (PDF).

Final paychecks

Last regular paycheck

If you have direct deposit, the check goes into your bank.
If you do not have direct deposit, it goes to your home address listed in APEX.
Your paycheck is taxed normally.
Deductions also come out for charities, college savings plan and Minnesota Benefits Association.
Paycheck comes on the normal pay schedule.

Other

Other final paychecks come two weeks after your regular paycheck and may be taxed. They include:

Unused sick leave, vacation and PTO
Unused comp time, deferred holiday time and banked special leave without pay; PERA deductions also come out
Retention pay (the amount depends on how many pay periods you worked since the last payment)
Required contribution for health care savings plan members (it will automatically go into your account)

To get a hard copy of your last paychecks, ask your HR APEX contact to mail copies to your home.

Phased retirement

PERA’s phased retirement option (PERA PRO)

PERA PRO lets employees transition to part time work while getting a PERA pension before completely retiring from the county. There’s no penalty from PERA while working on PERA PRO.

Requirements for employees

Get the approval of their department. Departments have the authority to determine if employees can take part.
Be age 62 or older
Be an active member of the General Plan (Basic or Coordinated Plans) as an employee, not elected official
Be immediately eligible for a retirement pension from the General Plan
Have worked at least 1,044 hours in each of the last five years
Sign a PERA PRO agreement. Employees who sign the agreement leave their prior permanent position. They agree to accept a post-retirement option position that is a renewable contract.

To participate in PERA PRO

Submit a PERA PRO agreement before the start date of the agreement.
Reduce your annual work schedule by at least 25% and not exceed 1,044 hours in a one-year period. The county and employee may arrange a work schedule less than the maximum hours allowed.
Stay within your allowed hours in a pay period and your allowed total hours in the PERA PRO agreement period. Exceeding either of the allowed hours will suspend the PERA monthly benefit. The benefit won’t be reinstated until the employee fully retires for at least 30 days in a row from all public employment. PERA does not grant any exceptions.
You must not be eligible for the state employee post-retirement option program (by state law)
You must not work as an employee for another government employer in Minnesota. Public employment includes any government employer in Minnesota such as school districts, cities, counties, townships and the state.

PERA PRO rules and guidelines

The PERA PRO agreement cannot last more than 12 months. It may be renewed for up to a total of five years.
PRO agreements are renewable at the discretion of the county and employee.
Either the county or the employee may decide not to renew a PERA PRO agreement.

At the end of the PERA PRO agreement

The employee must have no written or verbal agreement before the end of employment to provide services to the county. This applies as an employee, independent contractor or an employee of an independent contractor for 30 days.

Request participation, request renewal or end participation

Follow the steps in the PERA PRO employee process (PDF).

Continuing your insurance after you retire

Dental, vision, life and flexible spending account

Regardless of your age at retirement you can continue these benefits at your own expense:

Dental insurance for as long as you want
Vision insurance for up to 18 months
Life insurance for up to 18 months
Flexible spending account (health care expense account) to the end of the plan year

Process

You’ll receive a packet from 121 Benefits, the county’s COBRA administrator.
Mark the election form with your benefit choices.
Sign the form.
Send the signed form and a check for the first month’s cost to 121 Benefits.
Continue to send monthly payments to 121 Benefits.

Health insurance: retiring at age 65 or older

If you retire at age 65 or older you can’t continue county health insurance.

Medicare supplement plan

You can buy a county-sponsored group Medicare supplement plan from Medica.
If you buy the county-sponsored Medica plan, your spouse can also enroll if they're at least 65 and covered by county health insurance.
Call 952-992-2345 and mention Hennepin County.
For information about individual plans call Senior Linkage Line at 1-800-333-2433.

Spouses under 65

Can stay on county health insurance if they have it at the time you retire
Can stay on it up to 36 months or until age 65 if the retired employee enrolled in a county-sponsored Medicare plan

Cost to keep spouse on county health insurance is normal premium plus 2%:

Standard: $903.45 per month
Advantage (M Health Fairview/North Memorial): $795.56 per month
Advantage (HealthPartners/Park Nicollet): $795.56
Advantage (Hennepin Healthcare/NorthPoint): $734.32 per month

Health insurance: retiring before age 65

If you retire while under age 65 and meet other criteria, you can receive a county contribution toward the cost of your health insurance as if you are still working.
The county contribution applies to the employee-only portion, and not for the cost of any dependents.
The county contribution lasts until the end of the month you turn 65.

Qualify for early retiree health insurance

To qualify for early retiree health insurance, you must meet all three of these criteria:

1. You must be under age 65.

2. You must belong to one of these groups with no break in service:

Non-union regular employees hired or rehired on or before January 1, 2007
Union regular employees hired or rehired on or before January 1, 2008 and did not opt-out of early retiree health coverage
Unclassified employees hired or rehired on or before January 1, 2007
Elected officials who took office on or before January 1, 2007

3. You must have one of the following:

Be at least age 55 with 20 years of service
Be at least age 62 with 15 years of service
Be at least age 63 with 14 years of service
Be at least age 64 with 13 years of service
Been approved for a full retirement payment from a public retirement plan (like PERA) based on at least 10 years with the county (for example, the Rule of 90)
Been approved for a retirement payment from a public retirement plan (like PERA) based on at least 25 years of pension credit (time that counts toward earning retirement benefits), at least 10 of those with the county

Employee-only monthly cost

Health insurance with county contribution

Standard: $91.06
Advantage (M Health Fairview/North Memorial): $53
Advantage (Health Partners/Park Nicollet): $52.74
Advantage (Hennepin Healthcare/NorthPoint): $20.91

Health insurance where you pay full cost

Standard: $827.79
Advantage (M Health Fairview/North Memorial): $757.16
Advantage (Health Partners/Park Nicollet): $753.41
Advantage (Hennepin Healthcare/NorthPoint): $696.99

Other insurance costs

Dental: $41.90
Vision: $5.07
Life: $3.93 per month for a basic life plan of $50,000 coverage. For supplemental insurance, refer to your packet from 121 Benefits.
Flexible spending account (health care expense account): you can continue with post-tax dollars.

Employee and spouse monthly cost

If you’re already married and want to add your spouse to your insurance before you retire, you cannot do so unless it’s during open enrollment or if you have a life event before you retire. Your spouse can stay on your insurance until you turn age 65.

Health insurance with county contribution

Standard: $1,293.11
Advantage (M Health Fairview/North Memorial): $1,107.54
Advantage (Health Partners/Park Nicollet): $1,107.54
Advantage (Hennepin Healthcare/NorthPoint): $993.18

Health insurance where you pay full cost

Standard: $2,081.42
Advantage (M Health Fairview/North Memorial): $1,832.90
Advantage (Health Partners/Park Nicollet): $1,832.90
Advantage (Hennepin Healthcare/NorthPoint): $1,691.50

Other insurance costs

Dental: $93.75
Vision: $9.62
Life: $3.93 per month for a basic life plan of $50,000 coverage. For supplemental insurance, refer to your packet from 121 Benefits.
Flexible spending account (health care expense account): you can continue with post-tax dollars.

Employee and children monthly cost

Your children can continue county health insurance until age 26 or until you turn age 65, whichever comes first.

Health insurance with county contribution

Standard: $806.01
Advantage (M Health Fairview/North Memorial): $678.56
Advantage (Health Partners/Park Nicollet): $678.56
Advantage (Hennepin Healthcare/NorthPoint): $597.49

Health insurance where you pay full cost

Standard: $1,594.32
Advantage (M Health Fairview/North Memorial): $1,403.92
Advantage (Health Partners/Park Nicollet): $1,403.92
Advantage (Hennepin Healthcare/NorthPoint): $1,295.81

Other insurance costs

Dental: $93.75
Vision: $10.01
Life: $3.93 per month for a basic life plan of $50,000 coverage. For supplemental insurance, refer to your packet from 121 Benefits.
Flexible spending account (health care expense account): you can continue with post-tax dollars.

Family monthly cost

Health insurance with county contribution

Standard: $1,647.42
Advantage (M Health Fairview/North Memorial): $1,419.52
Advantage (Health Partners/Park Nicollet): $1,419.52
Advantage (Hennepin Healthcare/NorthPoint): $1,281.41

Health insurance where you pay full cost

Standard: $2,435.73
Advantage (M Health Fairview/North Memorial): $2,144.88
Advantage (Health Partners/Park Nicollet): $2,144.88
Advantage (Hennepin Healthcare/NorthPoint): $1,979.73

Other insurance costs

Dental: $93.75
Vision: $14.95
Life: $3.93 per month for a basic life plan of $50,000 coverage. For supplemental insurance, refer to your packet from 121 Benefits.
Flexible spending account (health care expense account): you can continue with post-tax dollars.

Contact information