Qualifying for Your Pension

To be eligible for a monthly retirement pension, you must meet minimum age and service requirements as described here.

These requirements vary depending on whether you are a Basic Plan or Member Investment Plan (MIP) member. In general, Basic Plan members are those who were in the Public School Employees Retirement System before the Member Investment Plan was introduced in 1987, and who elected to remain in the plan when offered a choice. For a comparison between the plans, click here .

Full Retirement Provisions

MIP members. 

As a MIP member, you will qualify for full retirement under any of the following provisions:

• MIP 46 with 30. You qualify for full retirement at any age with at least 30 years of service. However, if you have purchased universal buy-in service credit, you must be at least age 46. At least 15 years of service credit must have been earned through the Michigan Public School Employees Retirement System. 
• MIP 60 with 10. You are eligible for your pension at age 60 with at least 10 years of service credit.
• MIP 60 with 5. If you are age 60 and you have at least 5 years of service credit, you qualify for a pension if you have creditable service earned in each of the five school fiscal years immediately before your retirement effective date and you terminated your public school service immediately before your retirement effective date. A school fiscal year runs from July 1 through June 30.

Basic Plan members. 

As a Basic Plan member, you qualify for a full retirement under the following retirement provisions:

• Basic 55 with 30. You will qualify for your pension when you are at least age 55 and have 30 or more years of service credit. At least 15 years of service credit must have been earned through the Michigan Public School Employees Retirement System.
• Basic 60 with 10. You qualify for a pension at age 60 with at least 10 years of service credit.

Early Reduced Retirement Provisions

Whether you are Basic or MIP, you can take an early reduced retirement as early as age 55 if you have at least 15 but less than 30 years of service. Your pension amount is permanently reduced by one-half of one percent for each month you take your pension before age 60 (6 percent per year).

You must be an active member to be eligible for the early reduced benefit. An active member is someone who is still working and contributing to the plan. If you terminate employment before the month you reach pension eligibility age, you become a deferred member, rather than an active member ( see Summer birthday provision ). Deferred members don't qualify for the early reduced pension. 

To retire under the early reduced provision, you must meet all of the following conditions: 

• You worked in the month of your 55th birthday (an exception may apply if you were born in a summer month - see Summer birthday provision below).
• You have at least 15 but fewer than 30 years of service credit, with at least 10 years of service credit earned under this system. 
• You earned creditable service in each of the 5 school fiscal years immediately before your retirement effective date. The fiscal year in which you are retiring counts in the 5 years. (Click here for more information about earning service credit .)
• You terminated Michigan public school service immediately before your retirement effective date.

If you're thinking about an early reduced retirement, be sure to verify you meet these requirements before you terminate employment to be sure you qualify.

Deferred Retirement

You are vested - meaning you have sufficient service to qualify for a benefit though you may not yet meet the age requirement - when you have the equivalent of ten years of full-time Michigan public school employment.

If you leave public school employment after you are vested but before the month you reach pension eligibility age, you are choosing to defer your pension. Be sure to apply before your 60th birthday - your pension won't be any higher, and you could even lose money if you wait. (Note: If you already had 30 years of service at the time you terminated employment, you should apply as soon as you meet the minimum age requirement - age 46 for MIP and age 55 for Basic Plan.)

Deciding between a deferred or early reduced retirement.

If you're between age 55 and 60 and leaving public school employment, you might face a choice between an early reduced or a deferred retirement (assuming you meet all the eligibility requirements for both). Calculate your pension both ways before making a decision. Also consider this:

• Early reduced. Your pension will be permanently reduced. You and your eligible dependents are eligible for the health, dental, and vision insurances. You will be eligible for the plan's maximum insurance premium subsidy (unless you purchase service credit or first become a member of the Public School Employees Retirement System on or after July 1, 2008. See Your Insurance Benefits).
• Deferred retirement . Your pension will be calculated the same as a full retirement. You won't be eligible for health, dental, and vision insurances until your retirement effective date. You may or may not qualify for an insurance premium subsidy. See Your Insurance Benefits.

Summer birthday provision.

Suppose you were born during July, August, or September, expect to terminate employment in June, and you want to take an early reduced rather than a deferred retirement. Suppose that as of your birth date you'll meet all the requirements for an early reduced pension, but as of your termination date you won't be old enough. To prevent an unfair penalty for those who stop working when school ends in June but whose birthday falls in a summer month, a special provision applies.

If you are applying for a full retirement (other than the MIP 60 with 5) or an early retirement, and your 55th or 60th birthday falls in July, August, or September, we will consider you an active (not deferred) member if you meet both of the following conditions:

• You are a regularly employed 10-month employee who does not normally work the summer months (substitute employees and those employed on an irregular basis do not qualify); and
• You file your retirement application before the end of the school year preceding the summer in which your birthday occurs.

Your retirement effective date in a summer birthday situation will be the first day of the month following your birth date.

Your Retirement Effective Date

Your retirement effective date is the first day of the month following the month in which you have satisfied the eligibility requirements and you have terminated employment in Michigan public schools. 

You cannot work for a participating Michigan public school or college, even as a volunteer, in the month of your retirement effective date. Additionally, if you anticipate working for the state of Michigan in the month of your retirement effective date, other restrictions could apply. Contact ORS for details before completing your retirement application.

Of course, you must submit your retirement application forms and any required documentation before we can make an eligibility determination.

Note : You'll be able to enroll in the plan's health, dental, and vision insurance as of your retirement effective date. However, if you purchase service credit July 1, 2008, or later, the date you will be eligible for an insurance premium subsidy could be later. See Your Insurance Benefits, for details.

Counting Other Michigan Government Service

You may be able to combine service you have earned with a number of governmental units in Michigan in order to meet eligibility requirements. Act 88 - Reciprocal Retirement Act of 1961 helps public servants who have worked either full- or part-time for more than one Michigan governmental unit, but perhaps fall short of pension eligibility with any or all of them. Examples of a governmental unit include state, county, and municipal units.

Combining years of service from multiple employers can help you qualify for a pension, but the other service won't count in the calculation of your pension amount. Act 88 can't be used to qualify someone for survivor or disability benefits-it can only be used for a regular retirement pension.

More information, see Act 88.

If You Become Disabled

If you become totally and permanently disabled while a public school employee and you do not meet the age and service requirements for a full retirement, you may qualify for a disability retirement. Keep in mind, your disability application must be received within 12 months after terminating public school employment (unless there are extenuating circumstances). For more information see Disability Protection .