The cost for universal buy-in; maternity, paternity, child rearing time; and nonpublic education service credit is based on an actuarial formula.
Your cost for each year purchased is a percentage of your highest previous school fiscal year earnings. That percentage is found in the Actuarial Cost Table below, and is based on your age and number of years of service. (Note: If you are a Basic Plan member, deduct 4 percent from the percentage reflected in the table.)
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Actuarial Cost Table for MIP Members*
Effective January 1, 2004
|
|
Age
|
0 - 9.9999 Years of Service
|
10 - 19.9999 Years of Service
|
20 & Over Years of Service
|
|
Up to 24
|
10.5%
|
14.5%
|
18.5%
|
|
25
|
10.7
|
14.7
|
18.7
|
|
26
|
10.9
|
14.9
|
18.9
|
|
27
|
11.1
|
15.1
|
19.1
|
|
28
|
11.3
|
15.3
|
19.3
|
|
29
|
11.5
|
15.5
|
19.5
|
|
30
|
11.7
|
15.7
|
19.7
|
|
31
|
11.9
|
15.9
|
19.9
|
|
32
|
12.1
|
16.1
|
20.1
|
|
33
|
12.3
|
16.3
|
20.3
|
|
34
|
12.5
|
16.5
|
20.5
|
|
35
|
12.5
|
16.5
|
20.5
|
|
36
|
12.5
|
16.5
|
20.5
|
|
37
|
12.5
|
16.5
|
20.5
|
|
38
|
12.5
|
16.5
|
20.5
|
|
39
|
12.5
|
16.5
|
20.5
|
|
40
|
12.5
|
16.5
|
20.5
|
|
41
|
12.5
|
16.5
|
20.5
|
|
42
|
12.5
|
16.5
|
20.5
|
|
43
|
12.5
|
16.5
|
20.5
|
|
44
|
12.5
|
16.5
|
20.5
|
|
45
|
12.5
|
16.5
|
20.5
|
|
46
|
12.5
|
16.5
|
20.5
|
|
47
|
12.5
|
16.5
|
20.5
|
|
48
|
12.5
|
16.5
|
20.5
|
|
49
|
12.5
|
16.5
|
20.5
|
|
50
|
12.5
|
16.5
|
20.5
|
|
51
|
12.5
|
16.5
|
20.5
|
|
52
|
12.5
|
16.5
|
20.5
|
|
53
|
12.5
|
16.5
|
20.5
|
|
54
|
12.5
|
16.5
|
20.5
|
|
55
|
12.5
|
16.5
|
20.5
|
|
56
|
12.5
|
16.5
|
19.5
|
|
57
|
12.5
|
16.5
|
18.5
|
|
58
|
12.5
|
16.5
|
17.5
|
|
59
|
12.5
|
16.5
|
17.0
|
|
60 & over
|
12.5
|
16.5
|
16.5
|
|
*Note: The percentage rate for a Basic Plan member is 4% lower.
These rates are subject to change.
Step 1. Determine your highest previous school fiscal year earnings.
The cost of actuarial credit is based on your highest wages on record earned during a school fiscal year (July 1-June 30). We call this your "highest previous."
We will equate any part-time or partial year wages to a full-time, full-year wage for your service credit cost calculation. Click here to learn how you earn service credit.
New or returning? If you had no wages in the immediately preceding fiscal year because you are new to, or returning to, public school employment, you must wait until July 1 (the start of the new school fiscal year) before applying for service credit. Here are some scenarios:
- You begin public school employment January 5, 2004. The earliest you can apply to purchase service credit is July 1, 2004.
- You begin public school employment July 1, 2004. The earliest you can apply to purchase service credit is July 1, 2005.
- You leave public school employment June 30, 1989. You return to employment on August 20, 2004.The earliest you can apply to purchase service credit is July 1, 2005.
On leave? If you are on a sabbatical or military leave of absence, you can purchase credit based on your highest previous school fiscal year earnings assuming an employer-employee relationship still exists. If there is no employee-employer relationship, you'll have to reestablish a wage before you can initiate a purchase.
Laid off? If you have been laid off a year or less, you are considered to have an employer-employee relationship and can purchase credit based on your highest previous school fiscal year earnings. A layoff of more than a year requires an employer memo stating the employer-employee relationship is still in effect.
Step 2.
Determine your years of service. Your years of service for cost calculation purposes includes all earned service, service already purchased, service that is purchased but is pending vesting, and service credit being purchased with tax-deferred payment (TDP) agreements as of July 1 of the year you are making the purchase.
For instance, let's say as of July 1, 2004, you have worked a total of 7.5 years. You have already purchased 2 years of military service, and you have an ongoing TDP agreement for 1.5 years of maternity/paternity/child rearing service. The total years of service used to determine the actuarial cost of your purchase is 11 years (7.5 plus 2.0 plus 1.5).
Step 3.
Determine your age. Use your age as of the beginning of the current school fiscal year. Remember, a school fiscal year runs from July 1 to June 30.
Step 4.
Determine your actuarial percentage. Find the rate that applies to your age and years of service in the chart above. If you're a Basic Plan member, deduct 4 percentage points from that rate before going to the next step.
Step 5.
Do the math. Multiply the actuarial percentage rate by your highest previous school fiscal year earnings from Step 1. The result is your cost to purchase one year of service credit.
Click here to learn how to get an exact cost from ORS, and how to proceed with a purchase of any or all service credit you're eligible to buy.
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