Types of Service Credit
Rounding Out Your Retirement Plans
When your retirement application is processed, we forward your insurance information to the health, prescription drug, dental, and vision insurance carriers. You should receive insurance identification cards and materials a few weeks after your pension begins.
As a retiree, your state-sponsored life insurance continues for you and your dependents at no charge to you. Your coverage is 25 percent of the coverage you carried when you left work; your dependents' policies are capped at $1,000 each.
To view Long-Term Care Insurance (LTC) plan details, visit the Employee Benefits Division of the Michigan Civil Service Commission under Retiree Eligibility. If you previously enrolled in a state-sponsored LTCI plan with LifeSecure, Prudential or MetLife, you can call the vendor directly. For the LifeSecure Indiv
Eligible dependents for health, dental, and vision insurance plans include your spouse (as long as he or she is not also separately enrolled as an eligible state employee or retiree) and your unmarried children by birth, legal adoption, or full legal guardianship.
The Benefits for Life, the retiree-paid, optional coverage program offered through the state of Michigan offers you the opportunity to apply for coverage in key benefit areas. These offerings do not replace your state-sponsored benefit plans. Instead, the program offers additional financial protection with premiums payable through the convenience of pension deduction. Because the plans are optiona
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As a contributing member of the state employees' Defined Benefit (DB) Plan, you accumulate service credit for each pay period in which you work.
Service credit is important, because your eligibility for your pension depends on how many years of service (YOS) you have. Most members need 30 YOS to be able to retire at age 55.
In addition, your pension amount is calculated using your YOS in the DB Plan. Most members will receive a benefit that multiplies their final average compensation by 1.5% times their years of credited service.
| Service Determines Eligibility and Payment Amount |
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Mr. Simpson is 60 years old. He has worked for the state for 24 years, earning around $35,000 each year for the last several years. Mr. Simpson is eligible for his pension because he meets the age and years of service eligibility requirements. Mr. Simpson's yearly pension amount will be $35,000 times 1.5% times his 24 YOS. |
Some categories of plan members have different eligibility and calculation rules. To find out how much service credit you'll need or how your benefit will be calculated, see Retirement at a Glance.