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How You Earn Service

Glossary of Terms

Your service reflects the number of hours you have worked for a Michigan school that participates in the Public School Employees Retirement System. Participating schools are also known as reporting units, because they report your hours, compensation, and contributions to the Office of Retirement Services (ORS). In turn, ORS maintains these service records so that we can pay your pension when you are eligible. 

You receive service for teaching or nonteaching, full-time or part-time work, and for permanent, temporary, or intermittent employment. You also receive service for used vacation and sick leave, short-term disability payments which flow through your school's payroll system, and weekly workers' compensation payments you received after July 1, 1992. You do not earn service while receiving long-term disability payments. 

Per pay period caps apply.

In general, you earn one year of service when you work 1,020 hours within the July 1 through June 30 school fiscal year. You can earn no more than one year of service in any given school fiscal year. For instance, administrative staff may work 2,080 hours a year, but will be limited to one year of service because the annual cap is 1,020 hours. 

As the chart below illustrates, if you are paid every week you cannot be credited with more than 30 hours, worth .0294 years of service. The cap is 60 hours or .0588 if you are on a biweekly pay cycle. 

PERIOD  HOURS YEARS OF SERVICE
Weekly 30 .0294
Biweekly  60 .0588
Semimonthly  72 .0706
Monthly 138 .1353
Quarterly 396 .3882
Annually 1,020 1.000

If you work less than full-time.

If you don't work a full school year or if you're considered part-time because you don't work a typical school day, you will earn proportional service. See the chart below to see how service is earned for a variety of school work schedules, after considering the caps.

DAYS WORKED    HOURS PER DAY   HOURS CREDITABLE    SERVICE EARNED
17    6    102    .1
34    6    204    .2
68    6    408    .4
85    6    510    .5
119    6    714    .7
51    4    204    .2
102    4    408    .4
153    4    612    .6
260    4    1,020    1.0

 

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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.



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