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About Your Plan
About Your Plan
About Your Plan
The Michigan Office of Retirement Services (ORS) offers two Defined Benefit (DB) pension retirement plans within the Michigan Public School Employees Retirement System for members who first worked in the Michigan Public School Employees Retirement System before July 1, 2010. In addition to a pension benefit, members in these plans also have access to retiree healthcare plans and death and disability benefits.
Member Investment Plan (MIP)
You're in the Member Investment Plan (MIP) if you elected MIP during enrollment periods, or if you first worked within the retirement system on or after Jan. 1, 1990, but before July 1, 2010. There are five benefit structures in the MIP: MIP Fixed, MIP Graded, MIP Plus, MIP 7%, and MIP DC Converted. For details, see Member Investment Plan (MIP) At A Glance – an overview of the MIP features. If you're unsure of your benefit structure, log in to miAccount to find out.
You're in the Basic plan if you began public school employment before Jan. 1, 1990, and did not elect the MIP during the MIP enrollment periods. There are three benefit structures in the Basic plan: Basic, Basic 4%, and Basic DC Converted. For details, see Basic Plan At A Glance – an overview of the Basic plan features. If you're unsure of your benefit structure, log in to miAccount to find out.
The Michigan Public School Employees Retirement System's Defined Benefit (DB) plan is qualified under section 401(a) of the Internal Revenue Service Code operating under the provisions of Michigan's Public Act 300 of 1980, as amended (Michigan Compiled Laws 38.1301 et seq.).
The plan is administered by the Michigan Office of Retirement Services (ORS) with the oversight of a 12-member board.
Until 1974, both employers and employees contributed to the pension fund. It was then a contributory plan. By 1977 the system was funded entirely through employer contributions a noncontributory plan known as the Basic plan.
The Member Investment Plan (MIP) was introduced in late 1986. Those who were Basic plan members at the time could choose the MIP, which took effect Jan. 1, 1987. Basic plan members again had the opportunity to select the MIP in the fall of 1991.
The MIP and Basic plans were closed to new members starting on July 1, 2010. Public Act 300 of 2012 added provisions for MIP and Basic members to increase, maintain, or stop their contributions to the pension fund. Those who stopped their contributions to the pension fund switched to the Defined Contribution (DC) plan.
The Michigan Public School Employees Retirement System collects and compiles employee wage, contribution, and service information from 541 K-12 districts, 36 public school academy/charter schools, seven universities, 28 community colleges, 56 intermediate school districts, and 10 libraries.
As of Sept. 30, 2016, the system serves 207,645 active members and 211,007 retirees and beneficiaries. The net assets of the Michigan Public School Employees Retirement System, valued at $48.3 billion as of Sept. 30, 2016, are invested by the Michigan Department of the Treasury, Bureau of Investments. In fiscal year 2016, the system paid retirement pensions totaling $4.7 billion.
The system also provides retirees and eligible dependents with comprehensive health, prescription drug, dental, and vision benefits at a cost of $653.1 million. The Master Healthcare Plan is a self-funded plan administered by Blue Cross Blue Shield of Michigan.