Act 88 - Reciprocal Retirement Act of 1961

Eligibility

Act 88 - Reciprocal Retirement Act of 1961 allows you to combine service you may have earned with a Michigan governmental unit in order to qualify for a pension. Examples of a governmental unit include (but are not limited to) a city, township; village or county; commission or court; and state employment under the Defined Benefit plan.

In general, Act 88 helps public servants who have worked either full- or part-time for more than one Michigan governmental employer, but perhaps fall short of pension eligibility with any or all of them. Combining years of service from multiple employers can help you qualify for a pension, but the other service won't count in the calculation of your pension amount.

Reciprocity works both ways. If, after serving as a public school employee for at least 3.5 years, you then go to work for a Michigan governmental unit within 20 years, you may be able to count your subsequent employment to meet the pension eligibility requirement. You would then be eligible for a pension based on your public school service at age 60. 

Retirement system members who took a refund of contributions from the previous governmental unit may contact their previous employer concerning repayment. Those allowed to redeposit a refund must do so within 20 years after service commences with this retirement system.

It's a good idea to talk to your previous employer and ORS if you think Act 88 can help you qualify for a pension.

Conditions

• You must have a minimum of 3.5 years of credited Michigan public school service. 
• There cannot be more than a 20-year break in service between your governmental unit service and your public school service.
• Your other Michigan governmental unit service cannot be concurrent with your Michigan public school service.
• Act 88 is only used when your Michigan governmental unit service, combined with your Michigan public school service, qualifies you for a pension you would not receive otherwise.
• Act 88 cannot be used to qualify someone for survivor or disability benefits. It can only be used for a regular retirement.
• Reciprocal service can count toward the pension eligibility requirement, but is not included in your pension calculation.  

Cost

Not applicable.

Application

Provide a letter from the governmental employer verifying (1) your dates of employment; (2) hours worked per day (full-time or part-time); and (3) that you participated in the employer's retirement plan.