Michigan School Employees Retirement System (MPSERS):
MPSERS Important Information: |
| Phone Numbers: Office of Retirement Services: 1-800-381-5111 MPSERS Retiree Insurance: Medical: 1-800-422-9146 Dental: 1-800-345-8756 Vision: 1-800-225-5877 Website: http://www.michigan.gov/orsschools MPSERS Member Handbook: http://www.michigan.gov/documents/ MPSERS1_92795_7.pdf |
How do I: |
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Enroll in my University Retirement Plan Update/change my beneficiaries Update my address with MPSERS Start a Tax-Deferred Investment in a 403(b) SRA or 457(b)GSRA Maximize my Tax-Deferred Investments Learn about Saving & Investing for Retirement |
Quick Links: |
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Tax-Deferred Investments/Supplemental & Group Supplemental Retirement Accounts Forms Preparing to Retire CMU Retiree& Emeritus Status Benefits after Retirement Social Security Medicare Commonly Asked Questions |
This is a defined benefit plan. Contributions are required by the employer and may be required by the employee; Monthly pension is based on a formula and the amount contributed has no bearing on the amount of the benefit paid to the employee at retirement.
- The employee makes no contribution if they are in the Basic Plan.
- CMU contributes a percentage of earnings as mandated by the State of Michigan on the member's behalf.
- The employee also makes a contribution if they are in the Member Investment Plan (MIP), based on annual salary.
- Hourly and part-time salaried employees eligible for MPSERS at CMU automatically participate in MPSERS as their retirement plan.
- Full-time salaried employees eligible for MPSERS must make a one-time irrevocable choice in regard to their retirement plan, within 90 days of eligibility.
Exception: Any employee who is also a CMU Retiree and/or a MPSERS retiree (from any institution, and drawing a MPSERS pension) will not be eligible for any retirement benefit.
Contributions
If you’re eligible for MPSERS, the University will start contributions as of your date of hire. Salaried employees must make an irrevocable choice within 90 days as to whether to stay with MPSERS plan or go to the ORP. If no choice is made within 90 days, you will automatically remain in MPSERS. Non-salaried employees will remain in MPSERS.
Retirement Eligibility
MIP Plan Members
- Minimum of 46 years of age with 30 years of service, or
- Age 60 with at least 10 years of service, or
- Age 60 with at least 5 years of service and at least 0.1 years (102 hours) of credited service in each of the five school fiscal years immediately before your retirement effective date
Basic Plan Members
- 55 years of age and at least 30 years of service*, or
- 60 years of age and at least 10 years of service
*If you terminate employment before age 55, but have 30 years of service
in MPSERS, you can begin your pension at age 55.
Retirement Options:
Early Reduced Retirement:
At least 55 years of age with more than 15 years of service or more, but less than 30 years of credited service in each of the five school fiscal years immediately before your retirement effective date. Your pension is permanently reduced by one-half percent for each month your retirement effective date precedes your 60th birthday.
Deferred Retirement:
Deferred retiree can draw a pension at age 60 with 10 years of service (this is a member who leaves the institution after reaching 10 years and then contacts the retirement board about drawing their pension when they reach 60 and have not been actively working at the time of retirement effective date).
Pension Formula
Your final average compensation x 1.5% x years of MPSERS service credit = your annual pension. Divide by 12 for monthly pension.
Final Average Compensation:
MIP members: highest 36 consecutive months of earnings divided by 3 years
Basic members: highest 60 consecutive months of earnings divided by 5 years
Benefit Estimator:
This handy online estimator lets you key in your age, wage, and service information, and quickly estimates your future monthly pension.
http://www.michigan.gov/orsschools/0,1607,7-206-36524---,00.html
Purchasing Service Credit:
New online presentations!!
Office of Retirement Services (ORS) has just introduced two new on-line presentations for you to be able to access from your own computer. These two on line presentations will give you information and answers to many of our customers commonly asked questions concerning service credit and how it works.
These two new presentations are titled: “How to Earn or Buy Service Credit and How to Pay for Service Credit time”. The Office of Retirement Services (ORS) has created two online presentations which are approximately 7 minutes long and provides explanations, examples, and information about how to earn and when to buy service.
Please go to the ORS website at: http://www.michigan.gov/orsschools , then scroll to the bottom of the page and click on view presentations.
Information on options for purchasing additional years of service to enhance your pension benefits.
Insurance Coverage:
Retirees and their eligible dependents may enroll in health, dental and vision plan coverage at retirement. They may be eligible for a MPSERS subsidy towards the cost of the insurance premium if they meet the criteria. Under certain circumstances, eligible beneficiaries may continue coverage after a retiree’s death. More information is contained in the MPSERS Member Handbook under continuing your insurance benefits.