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Service Credit: Earning and Purchasing

Old Michigan red school house
Michigan Office of Retirement Services

Service Credit: Earning and Purchasing

Service Credit: Earning and Purchasing

Note: Public Act 92 of 2017 has made changes to service credit purchases. 

As a member of the Michigan Public School Employees' Retirement System, you accumulate service when you work for a participating public school. MIP Fixed, MIP Graded, MIP Plus, MIP 7%, Basic, and Basic 4% service will count toward eligibility and will be used in the pension calculation. Service credited while in the MIP DC Converted and Basic DC Converted plans only counts toward eligibility.

Service credit affects your pension eligibility.

Service credit is important because your pension depends on how many years of service (YOS) you have. If you're in the Member Investment Plan (MIP), you will qualify for a pension as early as age 46 if you have 30 YOS, or age 60 with 10 YOS. (Under certain circumstances, MIP members qualify at age 60 with 5 or more YOS). Basic Plan members will qualify for a pension at age 55 with 30 YOS or at age 60 with 10 YOS.

 Pension Eligibility for school employees graphic

Service credit affects your pension amount.

In addition, your pension amount is calculated using your YOS. Whether you are in the Basic Plan or MIP, your annual pension will be your final average compensation in the Defined Benefit (DB) Plan multiplied by a pension factor times your YOS in the DB Plan


Molly is 60 years old. She has worked for a public school for 24 years, earning around $35,000 each year for the last several years.

Molly is eligible for her pension because she meets the age and years of service eligibility requirements.

Different eligibility rules apply, depending on whether you are a Basic Plan or MIP member. For details, see Qualifying for Your Pension.

Explore the service credit section of this website. In it, we explain how you earn service while working for a Michigan public school, as well as how you might be able to have other qualifying service count in your public school service credit totals. You will find eligibility and cost information on the different types of service credit that may be granted, reinstated, or made whole by paying contributions that should have been made. We also include details on how to initiate a purchase, and the different ways you can pay for service credit.