Governmental Accounting Standards Board (GASB)
Charters and Public School Academies
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Healthcare benefits and costs for these plans depend on what employees chose in 2012. They may have a premium subsidy or a Personal Healthcare Fund. Starting Oct. 1, 2025, employees with the premium subsidy don't have to pay for this benefit. Before that date, the rate was 3.0%.
Employees in the Basic Plan started working before Jan. 1, 1990. They also chose to stay in this plan during special election periods. Under the Basic Plan, workers don't have pension money taken out of their pay.
The 2012 reform created the Basic 4% Plan. Employees in this plan pay 4% of their wages toward their pension. This is also called their contribution rate. By doing this, they keep a pension factor of 1.5%. They can choose to pay this 4% until they stop working. Or, they can choose to stop paying and go back to 0% once they reach 30 years of service (YOS). The Michigan Office of Retirement Services (ORS) will tell the reporting unit when a worker reaches 30 years of service (YOS).
The MIP has four parts based on the employee's start date and choices:
This plan is for employees who started between Jan. 1, 1987, and Dec. 31, 1989. It also includes some Basic Plan employees who moved to MIP in the 1990s. These employees pay 3.9% of all their wages.
This plan is for employees who first worked between Jan. 1, 1990, and June 30, 2008. The amount they pay changes based on how much they earn:
For MIP Graded and MIP Plus, the rate resets to 3% every July 1. This is the start of the new school year. The wage total starts over at zero on that date. Only count the wages paid at your reporting unit when you calculate these rates. This is true even if the employee works for more than one school.
This plan is for employees who first worked between July 1, 2008, and June 30, 2010. The rates are:
The 2012 reform created the MIP 7% plan. Starting Feb. 1, 2013, employees in this plan pay a flat 7% of their wages for their pension. This allows them to keep their 1.5% pension factor. Just like the Basic 4% Plan, they can stop paying this rate after they reach 30 years of service (YOS).