If you retired on or AFTER July 1, 2010

The rules are slightly different depending on where you’ll be returning to work. There are three different types of reporting units for which we’ll be reviewing the rules. Click on the tab below that best describes the type of public school you are returning to work for.


K-12, Charter, & PSA

  • K-12 Michigan Public Schools and Charter Schools/Public School Academies

    If you return to work in a K-12 Michigan public school, or charter school/public school academy after you retire and begin drawing your pension, there are many rules that may affect your pension. Factors may include either working directly or indirectly for a school, the type of work you perform, or when you retired. If you still have questions after a careful reading of the following rules, you might want to use the Working After Retirement Pension Impact Estimator.

    Your retirement effective date is on or after July 1, 2010:

    If you return to work DIRECTLY for a Michigan public school or charter school/public school academy:

    • Your earnings limit is one-third of your final average compensation (FAC). Example: If your FAC is $60,000, then you can return to work directly for a K-12 Michigan public school and earn $20,000, which is your FAC divided by three. You can find the amount of your FAC under the Pension Payments link in miAccount.
    • If you exceed the earnings limit for the gross amount paid in a calendar year, you will forfeit both your pension and retiree insurance premium subsidy until the month after your employment ceases. If you are paid in January for work performed in December, the payment would count toward the earnings limit in the new calendar year. In general, “gross earnings” includes more than the amount listed in Box 1 of your W-2. This may include wages or earnings from prior employment, like bonus payments or payouts connected to a retirement incentive. Additional earnings include items exempt from taxable wages. You can get a true representation of your gross earnings by looking at your last pay stub of the year. This includes all gross earnings as defined by the IRS. You can track your reported earnings and compare your earnings against your earnings limit in miAccount.


    If your pension is forfeited for exceeding the earnings limit, the forfeiture will begin the month you first exceed the limit. If enrolled, your insurance coverage will continue, but you must now pay the full, unsubsidized premium rate. To cancel your insurance, we must receive written confirmation in the month before the month in which you wish to remove your coverage. Your pension and insurance premium subsidy can resume effective the first of the month following the month in which you terminate your employment at the school.
     

    Substitute teacher: You may earn up to one-third of your FAC without penalty if you’re employed directly as a substitute teacher and you’ve been retired for at least 12 months, unless following a bona fide termination of employment, including not working in the month of your retirement effective date, you’re employed at a reporting unit providing instruction under the COVID-19 learning plan under Section 98a of the State School Aid Act of 1979. The reporting unit will pay the contributions for both the retiree pension and healthcare.

    School renewal coach or high impact leadership facilitator: This only applies to employees who work directly and have a retirement effective date between July 1, 2010, and the end date of the U.S. Department of Education 2017 grant. You also must be retired at least 12 months before becoming employed, unless following a bona fide termination of employment, including not working in the month of your retirement effective date, you’re employed at a reporting unit providing instruction under the COVID-19 learning plan under Section 98a of the State School Aid Act of 1979. You are exempt from earnings limits if you are hired as a school renewal coach or high impact leadership facilitator as part of a school leadership support program funded by a federal grant and you’re employed as part of a program that supports teams of school principals and teacher leaders in elementary schools by doing all of the following:

    • Providing intense professional development and support, and money, for renewal projects for teams of school leaders in a number of project schools that are implementing a set of new literacy essentials.
    • Placing a trained team of school renewal coaches or high impact leadership facilitators in each project school.
    • Providing a lower level of professional development support and funding for leaders in additional schools.
    • Applying a set of proven school leadership practices for school renewal and sustainable implementation.
    • Providing training, support, and oversight for the school renewal coaches or high impact leadership facilitators as a coordinator or supervisor of that work.

    The reporting unit will pay the contributions for both the retiree pension and healthcare.

    Critical shortage exemption: If you’re employed by a K-12 Michigan public school in a critical shortage discipline, regardless of when you retired, you are exempt from the earnings limit until July 1, 2025, if all the following exist in your situation:

    • You are employed by a K-12 Michigan public school that has a situation, not including a situation caused by a labor dispute, that requires the school to hire you in an area that has been identified by the state superintendent of public instruction as a critical shortage discipline, and
    • You are retired and have been collecting your pension for at least one year, unless:
      • You have a bona fide termination and did not work in the month of your retirement effective date, and
      • You’re employed at a reporting unit that provides instruction under an extended COVID-19 learning plan under Section 98a of the State School Aid Act of 1979.
    • The K-12 Michigan public school shall pay 100% of the contribution rates for the unfunded actuarial accrued liability for retiree healthcare and pension to the Michigan Office of Retirement Services (ORS). Talk with your school to ensure that they are reporting you as working in a critical shortage position.

    The critical shortage exemption ends July 1, 2025.

    View the Michigan Department of Education memorandum containing a link to a list of critical shortage disciplines.

    If you return to work INDIRECTLY in a Michigan K-12 public school or charter school/public school academy as an employee of a third party, or as an independent contractor:

    If you perform a core service, unless that core service is also listed on the list of critical shortage positions, you will forfeit your pension and retiree insurance premium subsidy until your employment ceases. A list of core services can be downloaded here. Please note: If your core service is also identified as a critical shortage position and you’re reported to ORS as working in a critical shortage position, or if you are providing food, custodial, or transportation services, your pension and retiree insurance premium subsidy will not be forfeited.

    • You may continue to collect your pension and receive the insurance premium subsidy if you’re not performing a core service.
    • If you are performing a non-core service for a reporting unit while employed by a third-party employer, there are no earnings limits.

    Exemptions to core services

    Substitute teacher, instructional coach, or school improvement facilitator: If you’re employed as a substitute teacher, instructional coach, or school improvement facilitator as an independent contractor or through an entity other than the reporting unit, you may earn up to one-third of your FAC without penalty until the expiration date of July 1, 2025.

    To qualify, you must meet all of the following requirements:

    • You are retired and have been collecting your pension for at least one year, unless
      • You have a bona fide termination, including not working in the month of your retirement effective date and are employed at a reporting unit that provides instruction under an extended COVID-19 learning plan under Section 98a of the State School Aid Act of 1997.
    • The reporting unit will pay the contributions for both pension and healthcare.
    • Talk with your school to ensure that they are reporting you as working as a substitute teacher, instructional coach, or school improvement facilitator.

    If you exceed the earnings limit for the gross amount paid in a calendar year, you will forfeit both your pension and retiree insurance premium subsidy until the month after your employment ceases. If you are paid in January for work performed in December, the payment would count toward the earnings limit in the new calendar year. In general, “gross earnings” includes more than the amount listed in Box 1 of your W-2. Additional earnings include items exempt from taxable wages. You can get true representation of your gross earnings by looking at your last pay stub of the year. This includes all gross earnings as defined by the IRS. You can track your reported earnings and compare your earnings against your earnings limit in miAccount.

    Critical shortage list: If you’re employed by third-party employer or as an independent contractor and provide a critical shortage discipline for a K-12 Michigan public school, regardless of when you retired, you are exempt from the earnings limit until July 1, 2025, if all the following exist in your situation:

    • You are retired and have been collecting your pension for at least one year, unless
      • Following a bona fide termination of employment, including not working in the month of your retirement effective date, you are employed at a reporting unit that provides instruction under the extended COVID-19 learning plan under Section 98a of the State School Aid Act of 1997.
    • You are employed in a K-12 Michigan public school that has a situation, not including a situation caused by a labor dispute, that requires the school to hire you in an area that has been identified by the state superintendent of public instruction as a critical shortage discipline, and
    1. The K-12 Michigan public school shall pay 100% of the contribution rates for the unfunded actuarial accrued liability for retiree healthcare and pension to ORS. Talk with your school to ensure that they are reporting you as working in a critical shortage position.

    See the Michigan Department of Education memorandum containing a link to a list of critical shortage disciplines here.




Comm. College

  • Tax-Supported Community Colleges in Michigan

    If you return to work in a Michigan tax-supported community college after you retire and begin drawing your pension, there are many rules that may affect your pension. Factors may include either working directly or indirectly for a school and whether or not you’re performing what is known as a core service. If you still have questions after a careful reading of the following rules, you might want to use the Working After Retirement Pension Impact Estimator.

    If you return to work directly for a tax-supported Michigan community college:

    • Your earnings limit is one-third of your final average compensation (FAC). Example: If your FAC is $60,000, then you can return to work directly for a tax-supported Michigan community college and earn $20,000, which is your FAC divided by three. You can find the amount of your FAC under the Pension Payments link in miAccount.
    • If you exceed the earnings limit for the gross amount paid in a calendar year, you will forfeit both your pension and retiree insurance premium subsidy until the month after your employment ceases. If you are paid in January for work performed in December, the payment would count toward the earnings limit in the new calendar year. In general, “gross earnings” includes more than the amount listed in Box 1 of your W-2. Additional earnings include items exempt from taxable wages. You can get a true representation of your gross earnings by looking at your last pay stub of the year. This includes all gross earnings as defined by the IRS. You can track your reported earnings and compare your earnings against your earnings limit in miAccount.
    • If your pension is forfeited for exceeding the earnings limit, the forfeiture will begin the month you first exceed the limit. If enrolled, your insurance coverage will continue, but you must now pay the full, unsubsidized premium rate. To cancel your insurance, we must receive written confirmation in the month before the month in which you wish to remove your coverage. Your pension and insurance premium subsidy can resume effective the first of the month following the month in which you terminate your employment at the school.
       

    School renewal coach or high impact leadership facilitator: This only applies to employees who work directly and have a retirement effective date between July 1, 2010, and the end date of the U.S. Department of Education 2017 grant. You also must be retired at least 12 months before becoming employed, unless following a bona fide termination of employment, including not working in the month of your retirement effective date, you’re employed at a reporting unit providing instruction under the COVID-19 learning plan under Section 98a of the State School Aid Act of 1979. You are exempt from earnings limits if you work as a school renewal coach or high impact leadership facilitator as part of a school leadership support program funded by a federal grant and you’re employed as part of a program that supports teams of school principals and teacher leaders in elementary schools by doing all of the following:

    • Providing intense professional development and support, and money, for renewal projects for teams of school leaders in a number of project schools that are implementing a set of new literacy essentials.
    • Placing a trained team of school renewal coaches or high impact leadership facilitators in each project school.
    • Providing a lower level of professional development support and funding for leaders in additional schools.
    • Applying a set of proven school leadership practices for school renewal and sustainable implementation.
    • Providing training, support, and oversight for the school renewal coaches or high impact leadership facilitators as a coordinator or supervisor of that work.

    The reporting unit will pay the contributions for both pension and healthcare.

    Substitute teacher: You may earn up to one-third of your FAC without penalty if you’re employed directly as a substitute teacher and you’ve been retired for at least 12 months, unless following a bona fide termination of employment, including not working in the month of your retirement effective date, you’re employed at a reporting unit providing instruction under the COVID-19 learning plan under Section 98a of the State School Aid Act of 1979. The reporting unit will pay the contributions for both the retiree pension and healthcare.

    If you return to work indirectly in a tax-supported community college as an employee of a third party, or as an independent contractor:

    If you perform a core service, you will forfeit your pension and retiree insurance premium subsidy until your employment ceases. A list of core services can be downloaded here.

    • If you are working in the areas of food, custodial, or transportation services, you are not performing a core service.
    • You may continue to collect your pension and receive the insurance premium subsidy if you're not performing a core service.
    • You can work as a substitute teacher if your retirement effective date is on or after July 1, 2010. You may earn up to one-third of your FAC without penalty until the expiration date of July 1, 2025. The reporting unit will pay the contributions for both pension and healthcare. To qualify, you must meet all of the following requirements:
    • You are retired and have been collecting your pension for at least one year, unless
    • You have a bona fide termination, including not working in the month of your retirement effective date, and are employed at a reporting unit that provides instruction under an extended COVID-19 learning plan under Section 98a of the State School Aid Act of 1997.


University

  • Universities Participating in MPSERS

    There are seven universities in Michigan that participate in the Michigan Public School Employees' Retirement System. Because these institutions are considered to be reporting units, you will be subject to the rules regarding earnings limits. The seven universities are Central, Eastern, Northern, and Western Michigan universities, Ferris State and Lake Superior State universities, and Michigan Technological University. If you still have questions after a careful reading of the following rules, you might want to use the Working After Retirement Pension Impact Estimator.

    Your retirement effective date is on or after July 1, 2010

    If you return to work DIRECTLY for a tax-supported university in Michigan that participates in the Michigan Public School Employees' Retirement System:

    • Your earnings limit is one-third of your final average compensation (FAC). Example: If your FAC is $60,000, then you can return to work directly for a tax-supported Michigan community college and earn $20,000, which is your FAC divided by three. You can find the amount of your FAC under the Pension Payments link in miAccount.
    • If you exceed the earnings limit for the gross amount paid in a calendar year, you will forfeit both your pension and retiree insurance premium subsidy until the month after your employment ceases. If you are paid in January for work performed in December, the payment would count toward the earnings limit in the new calendar year. In general, “gross earnings” includes more than the amount listed in Box 1 of your W-2. Additional earnings include items exempt from taxable wages. You can get a true representation of your gross earnings by looking at your last pay stub of the year. This includes all gross earnings as defined by the IRS. You can track your reported earnings and compare your earnings against your earnings limit in miAccount.
    • If your pension is forfeited for exceeding the earnings limit, the forfeiture will begin the month you first exceed the limit. If enrolled, your insurance coverage will continue, but you must now pay the full, unsubsidized premium rate. To cancel your insurance, we must receive written confirmation in the month before the month in which you wish to remove your coverage. Your pension and insurance premium subsidy can resume effective the first of the month following the month in which you terminate your employment at the school.
       

    Substitute teacher: You may earn up to one-third of your FAC without penalty if you’re employed directly as a substitute teacher and you’ve been retired at least 12 months, unless following a bona fide termination of employment, including not working in the month of your retirement effective date, you’re employed at a reporting unit providing instruction under the COVID-19 learning plan under Section 98a of the State School Aid Act of 1979. The reporting unit will pay the contributions for both the retiree pension and healthcare.

    School renewal coach or high impact leadership facilitator: This only applies to employees who work directly and have a retirement effective date between July 1, 2010, and the end date of the U.S. Department of Education 2017 grant. You also must be retired at least 12 months before becoming employed, unless following a bona fide termination of employment, including not working in the month of your retirement effective date, you’re employed at a reporting unit providing instruction under the COVID-19 learning plan under Section 98a of the State School Aid Act of 1979. You are exempt from earnings limits if you provide services for a reporting unit as a school renewal coach or high impact leadership facilitator as part of a school leadership support program funded by a federal grant and you’re employed as part of a program that supports teams of school principals and teacher leaders in elementary schools by doing all of the following:

    • Providing intense professional development and support, and money, for renewal projects for teams of school leaders in a number of project schools that are implementing a set of new literacy essentials.
    • Placing a trained team of school renewal coaches or high impact leadership facilitators in each project school.
    • Providing a lower level of professional development support and funding for leaders in additional schools.
    • Applying a set of proven school leadership practices for school renewal and sustainable implementation.
    • Providing training, support, and oversight for the school renewal coaches or high impact leadership facilitators as a coordinator or supervisor of that work.

    The reporting unit will pay the contributions for both retiree pension and healthcare.

    Exceptions to the earnings limits

    • You won’t be subject to the earnings limit if you were a former teacher or administrator and are now working at one of the seven participating universities in either a teaching or a research capacity or in a program department director position if your retirement effective date is on or between July 1, 2010, and Oct. 1, 2014.
    • The K-12 Michigan public school shall pay 100% of the contribution rates for the unfunded actuarial accrued liability for retiree healthcare and pension to the Michigan Office of Retirement Services.
       

    If you return to work INDIRECTLY in a university in Michigan that participates with the Michigan Public School Employees' Retirement System as an employee of a third party or as an independent contractor:

    If you perform a core service, you will forfeit your pension and retiree insurance premium subsidy until your employment ceases. A list of core services can be downloaded here.

    • If you are working in the areas of food, custodial, or transportation services, you are not performing a core service.
    • You may continue to collect your pension and receive the insurance premium subsidy if you’re not performing a core service.
    • You can work as a substitute teacher if your retirement effective date is on or after July 1, 2010. You may earn up to one-third of your FAC without penalty until the expiration date of July 1, 2025. The reporting unit will pay the contributions for both pension and healthcare. To qualify, you must meet all of the following requirements:
    • You are retired and have been collecting your pension for at least one year, unless
    • You have a bona fide termination, including not working in the month of your retirement effective date, and are employed at a reporting unit that provides instruction under an extended COVID-19 learning plan under Section 98a of the State School Aid Act of 1997.