The cost for universal buy-in (UBI), parental leave, and nonpublic education
service credit is based on an actuarial formula. An actuarial cost helps keep
the pension fund healthy because it takes the eventual pension payout into
consideration.
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.)
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
to June 30).
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.
On leave? If you don't have wages in the prior year because of a sabbatical or military leave of absence, you
may be able to purchase UBI, parental, and nonpublic education service credit based on your highest previous school fiscal year earnings,
or the earnings you normally would have earned during the period you were on
leave - assuming an employer-employee relationship still exists. If there is no employee-employer relationship, you'll have to
return to employment before you can initiate a purchase. Contact ORS if this
applies to you.
Laid off? If you have been laid off a year or less, and you maintain an employer-employee relationship,
you 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, 2009, 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
parental leave. 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. In the Actuarial Cost
Table, find the rate that applies to your age and years of service. 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.
Highest Compensation x Actuarial % = Cost to Purchase 1
Year
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.
|
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.
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