ORS and MPSERS

MPSERS For retirement information access Michigan Public School Employee Retirement System

ORS Michigan Office of Retirement Services

HQ Highly Qualified? Check the legislation

A brief history of MPSERS. This is very insightful and quick read to bring you up to speed on how Michigan got to where we are with teacher retirement.

MPSERS” A School Employees Pension Program (Short History)
The Michigan Public School Employees Retirement System is a statewide public employee
defined benefit plan qualified under section 401(a) of the Internal Revenue Service Code
operating under the provisions of Michigan’s Public Act 300 of 1980, as amended (Michigan
Compiled Laws 38.1301 et seq.).

The plan is administered by the Office of Retirement Services (ORS) with the oversight of a 12-
member publically appointed board.
Until 1974, both employers and employees contributed to the pension fund. It was then a
contributory plan. By 1977 the system was funded entirely through employer contributions-a
noncontributory plan known as the Basic Plan.
The Member Investment Plan (MIP) was introduced in late 1986. This contributory plan provides
more generous pension benefit options, such as a post retirement adjustment of 3% of the
retiree’s pension and a opportunity to retire at any age if the member has 30 or more years of
service credit. Those who were Basic Plan members at the time could choose the MIP, which
took effect January 1, 1987. Basic Plan members again had the opportunity to select the MIP in
the fall of 1991. Basic Plan members currently have no option to join the MIP plan.
All public school employees who became employed on or AFTER July 1, 2010, are enrolled in
the MIP Plus Pension plan. The plan combines a defined benefit pension with a defined
contribution account. The Office of Retirement Services will administer the plan and partner
with the financial service firm ING to provide investment options for school employees.
Beginning September 2010, employees hired on or after July 1,2010 will see 2 percent of their
pay contributed to a 457 account. Additionally employers will match 50 percent of the
employees contribution (up to 1 percent), so a total of 3 percent of your gross wages
automatically goes into an employees 457 retirement savings account. Any additional employer
contributions may be subject of bargaining. More information on the MIP Plus plan can be
found at www.michigan.gov/orsschools, as well as investment options provided through ING.
The majority of our members today are in the Member Investment Plan.
The Michigan Public School Employees Retirement System collects and compiles employee
wage, contribution, and service information from 550 K-12 districts, 59 public school academies,
7 universities, 28 community colleges, 57 intermediate school districts, and 11 libraries.
As of September 30, 2009, the system serves 268,208 active members and 171,922 retirees
and beneficiaries. The net assets of the Michigan Public School Employees Retirement System,
valued at $35.2 billion as of September 30, 2009, are invested by the Michigan Department of
the Treasury, Bureau of Investments. In fiscal year 2009, the system paid retirement pensions
totaling $3.3 billion.
The system also provides retirees and eligible dependents with comprehensive health, dental,
and vision benefits at a cost of $794.8 million. The Master Health Care Plan is a self-funded
plan administered by Blue Cross Blue Shield of Michigan.