Act 88 - Reciprocal Retirement Act of 1961
Act 88 - Reciprocal Retirement Act of 1961 allows you to combine service you may have earned with another 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, law enforcement division, commission or court, as well as Michigan public schools.
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 state employee for at least 30 months (2.5 years), you then go to work for another 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 state service at age 60.
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.
- You must have a minimum of 30 months (2.5 years) of state of Michigan service credit.
- You must have participated in a retirement program with your other governmental employer.
- There cannot be more than a 20-year break in service between your other governmental unit service and your state service.
- Your other Michigan governmental unit service cannot be concurrent with your state of Michigan service.
- Act 88 is only used when other Michigan governmental unit service, combined with your state of Michigan 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.
- If you took a refund of contributions from a previous governmental employer, you may wish to contact the employer concerning repayment (potentially allowing a pension payment under both retirement systems). If you are permitted to repay the refund, however, you must do so within 20 years after service commences in this retirement system.
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.