6.01.04: MIP Plan


The Member Investment Plan (MIP) is divided into three programs. The following chart provides an explanation of the MIP Fixed, MIP Graded, and the MIP Plus programs.

Plan Election Plan School FY Wages
(7/1–6/30)
Member MIP Contribution Employer Contribution

MIP members elected between 1/1/87 and 12/31/89 or Basic plan members electing MIP through the 1991 MIP Window 10/1/91 through 12/31/92 or

1999 MIP Window enrollees

MIP Fixed All 3.9% See Employer Contribution Rate table
New employees after 1/1/90 or returning employees not working from 1/1/87 through 12/31/89 MIP Graded

First $5,000:

$5,000.01–$15,000:

Over $15,000:

3.0%

3.6%

4.3%

See Employer Contribution Rate table
New members to this retirement system who first worked 7/1/08 or later. MIP Plus

First $5,000:

$5,000.01–$15,000:

Over $15,000:

3.0%

3.6%

6.4%

See Employer Contribution Rate table

The MIP Graded and the MIP Plus contribution rate begins at 3% each July 1. On this day, the wages on which the contribution rate is based restart at zero. Consider only wages paid at your reporting unit when calculating graded rate of MIP, even if the member works at multiple reporting units.

Beginning in July 2010, MIP members were required by law to contribute 3% of their reportable gross wage to a Health Care Contribution (HCC), or Premium Subsidy, fund in addition to the MIP contribution. See section 6.03.07 History of Retirement Health Care Contributions.

In 2012, eligible MIP members were offered an election to choose the Personal Healthcare Fund (PHF) in place of the Health Care Contribution. The Personal Healthcare Fund, effective February 1, 2013 if elected, has an initial mandatory employee deduction of 2% of gross wages (and includes a matching employer PHF contribution of 2% of gross wages).*
 
The MPSERS reform in 2012 created another MIP Plan called MIP 7%. Eligible MIP members could elect this plan effective September 4, 2012. For more information see section 6.01.10 MIP 7% Plan.

Plan Member Healthcare Contribution Employer Healthcare Match
Health Care Options for MIP plans
 
MIP Fixed, MIP Graded, and MIP Plus

HCC (Premium Subsidy)
effective 7/1/2010 (DTL2 record):   3%

(For wages less than $18,000 per year 7/1/10 – 6/30/11: 1.5%)

OR

N/A
 

Personal Healthcare Fund (PHF)
effective 2/13/2012 if elected (DTL4 record):  2% of gross wages*

2.0% of gross wages*

*Once an account has been established with the Third Party Administrator (TPA) for a member in a Defined Contribution plan or PHF, the member may increase or decrease the member DC contribution or may opt out of the plan by changing the deduction to 0%. A change in the member contribution amount may result in a change to the employer contribution percentage as well. For all MIP members who elected PHF, the first 2% of DC contributions must go into the PHF and must be matched 100% by the employer. Any member contributions over 2% are reported as DC contributions and an employer match deduction may apply based on the benefit plan of the employee.

Last updated: 05/19/2014