Types of Service Credit
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.
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
|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)
|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
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)||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.