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3% healthcare contribution no longer required

Beginning Oct. 1, 2025, active (working) members of the Michigan Public School Employees’ Retirement System who have the premium subsidy healthcare benefit will no longer be required to contribute 3% toward future healthcare benefits. This comes as a result of Public Act 127 of 2024.

You’ll likely see a small change in your paycheck in October, when this contribution is no longer deducted from your pay.

Nothing about your premium subsidy benefit will change, as long as you meet the premium subsidy eligibility requirements when you retire.

PA 127 of 2024 - Frequently Asked Questions