Michigan Department Of Education Retirement System

Michigan Department Of Education Retirement System

Michigan Department Of Education Retirement System, The Michigan Office of Retirement Services (ORS) administers retirement programs for Michigan’s state employees, public school employees, judges, state police, and National Guard. ORS also provides various retiree healthcare benefits, including traditional insurance plans, Personal Healthcare Funds, and Health Reimbursement Accounts. ORS serves over 530,000 customers (approximately 227,000 active and 281,500 retired), representing one out of every fourteen Michigan adults. ORS customers live in approximately one out of every nine Michigan households. The state employee system and the public school employee system administered by ORS make up 95 percent of all active plan membership in Michigan. ORS is responsible for the 18th largest public pension system in the United States and the 47th largest pension system in the world, managing combined net assets of nearly $67.8 billion. In fiscal year 2017, ORS paid out over $7.3 billion in pension and health benefits. According to the Pensionomics 2016 report from the National Institute on Retirement Security, pensions paid to Michigan retirees generated $11.1 billion in total spending in the state of Michigan. A Pew study ranks ORS in the top ten state pension systems for paying the highest percentage of their annual required contribution for pension plans, which demonstrates a commitment to fiscal responsibility. ORS is a division of Michigan’s Department of Technology, Management, and Budget (DTMB).

Public School Retirement Plans

ORS administers a Defined Benefit (DB) plan, two hybrid plans, and a Defined Contribution (DC) plan for public school employees. ORS also administers two retiree healthcare plans: the Premium Subsidy benefit and the Personal Healthcare Fund. Contact your HR office if you need to review your election. Access the retirement plan descriptions and member websites below.

Retirement Plan High-Level Descriptions

Retirement Plan Descriptions and Links
Defined Benefit (DB) Plan You’re a member in the Defined Benefit (DB) retirement plan if you: First worked for a Michigan public school before July 1, 2010, and You did not choose to switch to the DC retirement plan under the reform (P.A. 300) of 2012. The DB plan has several benefit structures, including Basic, Basic 4%, Basic DC Converted, MIP (MIP Fixed, MIP Graded, and MIP Plus), MIP 7%, and MIP DC Converted.

Pension Plus Plan You’re a member in the Pension Plus retirement plan if you: First worked for a Michigan public school between July 1, 2010, and September 3, 2012, and you did not choose the Defined Contribution (DC) retirement plan under the reform (P.A. 300) of 2012, or First worked for a Michigan public school between September 4, 2012, and January 31, 2018, and you did not choose the Defined Contribution (DC) retirement plan. The Pension Plus plan is a hybrid plan that offers both Defined Benefit (DB) and Defined Contribution (DC) components.

Pension Plus 2 Plan You’re a member in the Pension Plus 2 retirement plan if you: First worked for a Michigan public school on or after February 1, 2018, and you elected the Pension Plus 2 plan. The Pension Plus 2 plan is a hybrid plan that offers both Defined Benefit (DB) and Defined Contribution (DC) components.

Defined Contribution (DC) You’re a participant in the Defined Contribution (DC) retirement plan if you: First worked for a Michigan public school on or after September 4, 2012, and you chose the DC plan, or Began your Michigan public school employment under the DB plan and chose to transfer to the DC plan under the reform (P.A. 300) of 2012, or First worked for a Michigan public school on or after February 1, 2018, and you did not choose the Pension Plus 2 plan. Your benefits consist of 401(k) and 457 investment accounts and a Personal Healthcare Fund for retiree healthcare costs.