Types of Service Credit

Note: Active members hired before July 1, 2010 and still participating in the defined benefit pension plan who intend to initiate a service credit purchase must ensure the full payment for the amount of service they wish to buy or a fully completed tax-deferred payment agreement is received in our office by 5:00 p.m. EDT, September 29, 2017.

There are different types of service credit, each with specific rules, costs, and applications. 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)*

Discontinued as of 5:00 p.m. EDT September 29, 2017

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*

Discontinued as of 5:00 p.m. EDT September 29, 2017

Actuarial cost/ 5 years miAccount or Parental Leave Service Credit Application (R0008C)

Nonpublic Educational Service*

Discontinued as of 5:00 p.m. EDT September 29, 2017

Actuarial cost/ 5 years miAccount or Out-of-System Public or Nonpublic Educational Service (R0149C) application

Out-of-System Public Educational Service Pre-1974 

Discontinued as of 5:00 p.m. EDT September 29, 2017

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* 

Discontinued as of 5:00 p.m. EDT September 29, 2017

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

Discontinued as of 5:00 p.m. EDT September 29, 2017

Usually no charge / No limit
 
Application to Purchase Sabbatical Leave Credit (R0148C)  

Sabbatical Leave Post-1981*

Discontinued as of 5:00 p.m. EDT September 29, 2017

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

Discontinued as of 5:00 p.m. EDT September 29, 2017

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

Discontinued as of 5:00 p.m. EDT September 29, 2017

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 received WWC payments before July 1, 1992, submit an  Application for Weekly Workers' Compensation Credit (R0285C)

If you received 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)

Discontinued as of 5:00 p.m. EDT September 29, 2017

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 after June 30, 2008, 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.