ORSSCHOOLS - Types of Service Credit

ORS — Public School Employees Retirement System

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	Act 88 - Reciprocal Retirement Act

	CETA

	Parental Leave

	Military

	Nonpublic School

	Out-of-System Public School

	Other Public Schools/Colleges

	Private Schools/Colleges

	Repayment of Refunded Contributions

	Sabbatical

	State of Michigan

	Universal Buy-In

	Workers' Compensation


>	Calculating Actuarial Cost

>	How to Purchase

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Types of Service Credit

Glossary of Terms

Each type of service credit has its own eligibility rules, special conditions, costs, and application procedure. In this section, we list the various types of service credit that you may be able to purchase or transfer. We also provide a summary chart below.

Important Information:

Buying service can help you qualify for your pension earlier, but it won't necessarily help you qualify for the plan's health insurance premium subsidy earlier. For more information refer to the Delayed Subsidy Examples.

It is not uncommon for members to have a number of service credit purchase or transfer options. If this is your situation, ask an ORS customer service representative to explain the ramifications of each so that you can make an informed choice that best meets your needs.

A note about costs.

The cost for your service credit may be based on a flat percentage rate, an actuarial rate, or a combination of contributions and interest. Where possible, we give you details and examples so you can estimate your cost. You can always get an actual cost by sending ORS an application or by requesting a "bill".

Service Credit Costs and Limits
Type	Cost	Limit

Universal Buy-In (anyone can buy)*	Actuarial cost	5 years, reduced by purchases of credit types eliminated from law as of 1/31/91
Parental Leave*	Actuarial cost	5 years
Nonpublic Educational Service*	Actuarial cost	5 years
Out-of-System Public Educational Service	Contributions plus interest	15 years on a matching basis
Out-of-System Public Educational Service*	5% of highest previous fiscal year salary
Active Duty Military Service	Intervening: No charge in most cases. Nonintervening: 5% of highest previous fiscal year salary	Intervening: 6 years 5 years (combination cannot exceed 6 years)
Sabbatical Leave Pre-1981	Usually no charge	No limit
Sabbatical Leave Pre-1981*	5% of highest previous fiscal year salary	No more than 1 year creditable per sabbatical leave
State of Michigan Civil Service - Defined Benefit Plan	Pre-1974: Contributions + Interest Post-1987: MIP costs + Interest	No limit
Weekly Workers' Compensation	Pre-7/1/77: Contributions + Interest 7/1/77-12/31/86: No charge Post-1987: MIP costs + Interest	No limit
Comprehensive Employment and Training Act of 1973 (CETA)	No cost to member	No limit

* If you purchased this type of service credit, your insurance premium subsidy may not begin when your pension begins. It may be delayed until you reach the age in which you would have become eligible for a pension had you not purchased service. See Insurance Premium Subsidies and Delayed Subsidies for details.