Final deadline for MPSERS retirement elections is Wednesday, Jan. 9
Members of the Michigan Public School Employees Retirement System have until 5 p.m. on Wednesday, Jan. 9, to make their final elections on pension and retiree benefits.
Members hired before July 1, 2010, have three options:
- Remit higher contributions in exchange for retaining the 1.5-percent pension multiplier for future years of service. Employees will be required to identify whether they wish to contribute the higher amounts until retirement, or until they achieve 30 years of service.
- Remit the same contributions as before, but have a 1.25-percent pension multiplier for future years of service.
- Remit no contributions, freeze the existing pension benefit, and convert to a specified 4-percent defined contribution plan for future years of service.
A member may change his or her retirement option up until the Jan. 9 deadline, after which the decision is irreversible.
The contribution levels will be implemented on Feb. 1.
Members hired after July 1, 2010, are automatically placed in a “hybrid” plan, which requires them to contribute 6.4 percent of their salary over $15,000, plus an additional $510 a year, to fund their pension. Members in the hybrid plan also have the option to add on a 401(k)-style defined contribution plan.
Public Act 300 placed an original deadline of Oct. 26, 2012, for making retirement elections. However, the Ingham County Circuit Court issued a temporary restraining order against the new law. Last month, the Legislature passed the new deadline of Jan. 9.
For more information on the decision that must be made by Jan. 9, visit www.mea.org/retirement.