ORS - Am I in the DC (401(k) Defined Contribution plan) or DB (Defined Benefit) plan?

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Am I in the DC (401(k) Defined Contribution plan) or DB (Defined Benefit) plan?

Example 1

Judy entered state employment on June 18, 1996 and chose the DC plan during the open enrollment window (January 2—April 30, 1998). She left her state job in October 1998, but returned to state employment in December 2004. She remains in the DC plan since she already made her one-time irrevocable choice in 1998.

Example 2

Sam left state employment in February 1997 after eight years of service. He returned to state employment in January 2005. Sam did not have the chance to choose between the DB and DC plans before leaving in 1997, so he has 60 calendar days after his hire date to decide which plan to join. If he does not select a plan, he will automatically be enrolled in the DB plan because he was previously a member of that plan.

Most new state employees are automatically enrolled in the 401(k) Defined Contribution (DC) retirement plan. However, if you previously worked for the state of Michigan and are rehired, or if you were a deferred member of the Michigan Public School Employees Retirement System, you may have a chance to choose between the Defined Contribution and the Defined Benefit (DB) retirement plans. You can make this selection only once and it is irrevocable.

To be eligible to choose between the plans, you must meet both of these conditions:

You were a nonvested or a deferred (vested) member of the State Employees' Retirement System on March 30, 1997, and
You did not previously make a selection between the DB plan and the DC plan. If you previously chose between the state's DB and DC plans, left state employment, and are now returning, your former plan election remains in effect.

Note: If you were a deferred member of the Public School Employees Retirement System on March 30, 1997 (vested, but not working), you may also choose either the DB or DC retirement plan.

If you meet these conditions, contact your human resource office to request the Retirement Plan Selection (for rehired public employees) form. Your HR representative can give you additional information about the differences between the DB and the DC retirement plans to help you select the plan that best fits your needs. Return your completed Retirement Plan Selection form to your human resource office within 60 calendar days of starting your new job.