ORSSCHOOLS - Types of Service Credit

ORS — Public School Employees Retirement System

Michigan.gov - official web site for the State of Michigan

Michigan.gov Home	ORS Home \| Public Schools Home \| Site Map \| Contact Us \| Glossary


>	Earning Service Credit

>	Adding to Your Service Credit

>	Types of Service Credit

	Act 88 - Reciprocal Retirement Act

	CETA

	Maternity/Paternity/ Child Rearing Leave

	Military

	Nonpublic School

	Out-of-System Public School

	Other Public Schools/Colleges

	Parental

	Private Schools/Colleges

	Repayment of Refunded Contributions

	Sabbatical

	State of Michigan

	Universal Buy-In

	Workers' Compensation


>	Calculating Actuarial Cost

>	How to Purchase

Printer Friendly Text Only Version

Text Version

Email Page

Types of Service Credit

Glossary of Terms

Each type of service credit has its own eligibility rules, special conditions, costs, and application procedure. In this section, we list the various types of service credit that you may be able to purchase or transfer. We also provide a summary chart below.

It is not uncommon for members to have a number of service credit purchase or transfer options. If this is your situation, ask an ORS customer service representative to explain the ramifications of each so that you can make an informed choice that best meets your needs.

Important Information:

All service credit purchases must be completed while you are an active (working)member.

A note about costs.

The cost for your service credit may be based on a flat percentage rate, an actuarial rate, or a combination of contributions and interest. Where possible, we give you details and examples so you can estimate your cost. You can always get an actual cost by sending ORS an application or by requesting a "bill".

Service Credit Costs and Limits
Type	Cost	Limit

Universal Buy-In (anyone can buy)	Actuarial cost	5 years, reduced by purchases of credit types eliminated from law as of 1/31/91
Maternity/Paternity/Child Rearing Time	Actuarial cost	5 years
Nonpublic Educational Service	Actuarial cost	5 years
Out-of-System Public Educational Service	Pre-1974: Contributions + Interest Post-1974: 5% of highest previous fiscal year salary	15 years on a matching basis
Active Duty Military Service	Intervening: No charge in most cases. Nonintervening: 5% of highest previous fiscal year salary	Intervening: 6 years Nonintervening: 5 years (combination cannot exceed 6 years)
Sabbatical Leave	Pre-1981: Usually no charge Post-1981: 5% of highest previous fiscal year salary	No limit No more than 1 year creditable per sabbatical leave
State of Michigan Civil Service - Defined Benefit Plan	Pre-1974: Contributions + Interest Post-1987: MIP costs + Interest	No limit
State of Michigan Civil Service - Defined Contribution Plan	Actuarial cost	No limit
Weekly Workers' Compensation	Pre-7/1/77: Contributions + Interest 7/1/77-12/31/86: No charge Post-1987: MIP costs + Interest	No limit
Comprehensive Employment and Training Act of 1973 (CETA)	No cost to member	No limit