FY 2026 contribution rates posted (for non-university reporting units)

Michigan Office of Retirement Services sent this bulletin at 02/24/2025 04:00 PM EST

The contribution rates for fiscal year 2026 have been posted on the Employer Information website (PSRU). They are effective beginning Oct. 1, 2025.

Contribution Rates for Non-University Employers

Note that the rates for FY 2026 have a few significant changes. Effective Oct. 1, 2025:

• The member contribution rate for Pension Plus 2 members will be 6.0%, down from 6.2%. The employer contribution rate for these members remains 6.2%.
• The employer UAAL contribution rate cap is reduced from 20.96% to 15.21%.
• Members with the premium subsidy healthcare benefit will no longer be required to contribute 3% toward future healthcare benefits, per Public Act 127 of 2024. See the Summary of PA 127 sent in October.
• Employers will absorb the health normal cost that members with premium subsidy formerly paid. However, the health normal cost contribution floor is removed, which means the health normal cost contribution for subsequent FYs can be less than the previous FY. The pension normal cost contribution floor is still in place.

If you have questions, please contact ORS_Web_Reporting@michigan.gov.

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