ORSSCHOOLS - Types of Service Credit

ORS Public School Employees Retirement System

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	Act 88 - Reciprocal Retirement Act

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	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.

It is not uncommon for members to have a number of service credit purchases 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.

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.

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	Application

Universal Buy-In (anyone can buy)*	Actuarial cost/ 5 years, reduced by purchases of credit types eliminated from law as of 1/31/91	Request a UBI Member Billing Statement in miAccount
Parental Leave*	Actuarial cost/ 5 years	miAccount or Parental Leave Service Credit Application (R0008C)
Nonpublic Educational Service*	Actuarial cost/ 5 years	miAccount or Out-of-System Public or Nonpublic Educational Service (R0149C) application
Out-of-System Public Educational Service Pre-1974	Contributions plus interest / 15 years on a matching basis	Out-of-System Public or Nonpublic Educational Service (R0149C) application
Out-of-System Public Educational Service Post 1974*	5% of highest previous fiscal year salary / 15 years on a matching basis	miAccount or Out-of-System Public or Nonpublic Educational Service (R0149C) application
Active Duty Military Service	Intervening: No charge in most cases / 6 years Nonintervening: 5% of highest previous fiscal year salary / 5 years (combination cannot exceed 6 years)	miAccount or Military Service Credit Application (R0081C)
Sabbatical Leave Pre-1981	Usually no charge / No limit	Application to Purchase Sabbatical Leave Credit (R0148C)
Sabbatical Leave Post-1981*	5% of highest previous fiscal year salary / No more than 1 year creditable per sabbatical leave	miAccount or Application to Purchase Sabbatical Leave Credit (R0148C)
State of Michigan Civil Service - Defined Benefit Plan	Pre-1974: Contributions plus Interest / No limit Post-1987: MIP costs plus Interest / No limit	Application to Transfer State of Michigan Service (R0317C)
State of Michigan Civil Service - Defined Contribution Plan	Actuarial cost / No limit	Application to Transfer State of Michigan Service (R0317C)
Weekly Workers' Compensation	Pre-7/1/77: Contributions plus Interest / No limit 7/1/77-12/31/86: No charge / No limit Post-1987: MIP costs plus Interest / No limit Post-1987: Basic Plan no charge Note: MIP contributions on WWC payments must be paid in full before you establish a retirement effective date.	If you received WWC payments after July 1, 1992, the credit should be reflected on your annual Member Statement If you recevied WWC payments before July 1, 1992, submit an Application for Weekly Workers' Compensation Credit (R0285C) If you recevied WWC payments after July 1, 1992, your employer should have reported your WWC to ORS. Contact your payroll office to verify that your WWC was reported
Comprehensive Employment and Training Act of 1973 (CETA)	No cost to member / No limit	Generally, credit is already granted for CETA service performed before May 3, 1976, and after October 1, 1978.

* 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.

The retirement plan information that appears on this website is intended to summarize basic provisions of Public Act 300 of 1980, as amended.
Current laws, rates, and factors are subject to change. Should there be discrepancies between the information reflected here and the actual law,
the provisions of the law govern.