Charters and Public School Academies
Governmental Accounting Standards Board (GASB)
Charters and Public School Academies
Employer Contributions Forfeiture Credit Campaign
Search is currently unavailable. Please try again later.
The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer.
The Member Investment Plan (MIP) is made up of four benefit structures, depending on the member's first day worked and their reform election: MIP Fixed, MIP Graded, MIP Plus, and MIP 7%.
The 2012 reform created the MIP 7% plan as an election option for MIP members. Members who elected the MIP 7% plan pay an increased, flat DB contribution rate (7%, beginning Feb. 1, 2013) and retain their 1.5% pension factor. Members could elect to remain at the 7% level until their termination from public school employment, or to revert to their previous benefit plan rates upon attaining 30 years of service. ORS notifies the reporting unit when a member attains 30 years of service.
The following chart provides a comparison of the benefit structures and the member contributions required. Employer Defined Benefit (DB) contributions are found on the Contribution Rates.
|
Benefit structure |
Who is in it? |
School FY wages |
Member DB contribution |
|
MIP Fixed |
Members who first worked between Jan. 1, 1987, and Dec. 31, 1989, who elected MIP or |
All |
3.9% |
|
MIP Graded |
Members who first worked between Jan. 1, 1990, and June 30, 2008 |
First $5,000.00: $5,000.01 - $15,000.00: Over $15,000.00: |
3.0% 3.6% 4.3% |
|
MIP Plus |
Members who first worked between July 1, 2008, and June 30, 2010. |
First $5,000.00: $5,000.01 - $15,000.00: Over $15,000.00: |
3.0% 3.6% 6.4% |
|
MIP 7% |
Eligible MIP members who elected the MIP 7% plan in 2012. |
All |
7% |
In the MIP Graded and the MIP Plus benefit structures, the member contribution rate resets at 3% each July 1. On this day, the wages on which the member contribution rate is based restart at zero. Consider only wages paid at your reporting unit when calculating DB contributions based on graded rates, even if the member works at multiple reporting units.
Healthcare contributions depend on the member's healthcare election during the 2012 reform, or their first day worked. Members have either the premium subsidy benefit or the PHF, with the contribution requirements as shown on the contribution rate tables. Note that effective Oct. 1, 2025, members with the premium subsidy benefit are no longer required to contribute toward the cost of this benefit. For reportable wages paid before that date, the member contribution rate was 3.0%.
Last updated:10/01/2025