Teacher Pension CalculatorPlain-English estimates for Michigan public school employeesUnofficial
Michigan · MPSERS · Glossary

MPSERS words, in plain English

The terms you'll meet on your miAccount, in ORS letters and on this site, each with the source it comes from.

Basic Plan

Began public school employment before Jan. 1, 1990 and did not elect MIP during the MIP enrollment periods. Structures: Basic, Basic 4%, Basic DC Converted.

Planning Your Retirement (R0613C, 5/26), p. 4, Basic Plan; Your Retirement Plan (R0611C, May 2017; dated), p. 7Which plan am I in? →

Bona fide termination

A complete severing of the employment relationship with no promise of reemployment; no work (even volunteer) for a Michigan public school reporting unit or the State of Michigan in the month of the retirement effective date.

Planning Your Retirement (R0613C, 5/26), pp. 9, 47; ORS web page: Working After You Retire, Bona fide termination; MCL 38.1361(11)(a)Working after retirement →

Defined Contribution (DC) plan

No pension. Sept. 4, 2012 - Jan. 31, 2018 hires who opted out of Pension Plus; Feb. 1, 2018 - June 30, 2024 hires who chose DC or made no choice (DC was the default); July 1, 2024+ hires who chose DC.

ORS employer manual 6.03.03, Pension Plus and Pension Plus 2 plans (last updated 10/01/2025), Pension Plus 2 Plan ('Those whose first day worked was Feb. 1, 2018 – June 30, 2024, and who did not make an election, are enrolled in the Defined Contribution (DC) plan'); MPSERS annual report FY2025, p. 25; MCL 38.1381d(1)-(6)Which plan am I in? →

Early reduced pension

A Basic or MIP pension started before 60 with fewer than 30 years, cut 0.5% for each month before 60, for life.

Planning Your Retirement (R0613C, 5/26), p. 19, Early reduced pension; ORS web page: Qualifying for Your Pension, Early Reduced Retirement Provisions ('one-half of 1% for each month ... (6% per year)'); MPSERS annual report FY2025, p. 26; MCL 38.1384(2)Retiring early →

Equated plan

Coordinates with Social Security: a higher pension until 62, then permanently reduced. The pre-62 amount approximates the post-62 pension plus the estimated age-62 Social Security benefit. Not available if 61 or older at retirement or for a disability retirement. Can be combined with a survivor option.

Planning Your Retirement (R0613C, 5/26), pp. 20-21, Equated plan; MCL 38.1385(2); Retirement Readiness (Dec. 2017, dated), pp. 32-33Payment options →

Member Investment Plan (MIP)

Elected MIP during enrollment periods, or first worked on or after Jan. 1, 1990 but before July 1, 2010. Structures: MIP Fixed, MIP Graded, MIP Plus, MIP 7%, MIP DC Converted.

Planning Your Retirement (R0613C, 5/26), p. 4, MIP; Your Retirement Plan (R0611C, May 2017; dated), p. 7Which plan am I in? →

Pension factor

The percent of your FAC you earn for each year of service: 1.5%, or 1.25% for some Basic and MIP service after the transition date.

Planning Your Retirement (R0613C, 5/26), p. 11, Your pension factor; MPSERS annual report FY2025, pp. 25-26, Options 1-4; MCL 38.1384bThe pension formula →

Pension Plus

First worked July 1, 2010 - Jan. 31, 2018. Hires from Sept. 4, 2012 to Jan. 31, 2018 could opt out to the DC plan within 75 days; Pension Plus was the default.

MPSERS annual report FY2025, pp. 24-25, Pension Reform 2010 and 2012; MCL 38.1381c(1), (6)(a); MCL 38.1381d(1)-(3)Which plan am I in? →

Pension Plus 2

First worked on or after Feb. 1, 2018 and chose (Feb. 1, 2018 - June 30, 2024) or defaulted into (on or after July 1, 2024) Pension Plus 2.

ORS employer manual 6.03.03, Pension Plus and Pension Plus 2 plans (last updated 10/01/2025), Pension Plus 2 Plan; MPSERS annual report FY2025, p. 25, Pension Reform of 2017; MCL 38.1381d(4), (6); Choosing Your Retirement Plan (R2053C Rev. 9/24), pp. 3-4Which plan am I in? →

Premium subsidy

Maximum subsidy: the system pays 80% of the premium (90% for those already enrolled and Medicare-eligible / 65+ on Jan. 1, 2013).

Planning Your Retirement (R0613C, 5/26), pp. 24, 33 ('Maximum subsidy (80% of the premium)'); MPSERS annual report FY2025, p. 29 (90% for those Medicare eligible and enrolled on Jan. 1, 2013); MCL 38.1391(1), (4)Retiree health insurance →

Reporting unit

A Michigan public school employer in MPSERS: K-12 districts, charter schools, intermediate school districts, some public libraries and museums, tax-supported community colleges, and seven universities.

ORS web page: Working After You Retire, Michigan public school reporting unitsWorking after retirement →

Retirement effective date

First day of the month after the month in which all eligibility requirements are met and employment has ended. Apply at least three months ahead; retroactive benefits are paid up to 12 months after you become eligible.

Planning Your Retirement (R0613C, 5/26), pp. 9, 40-41; ORS web page: Qualifying for Your Pension, Your Retirement Effective Date; MCL 38.1383(1)Retiring early →

Straight life

The full monthly pension for your life only; every other option starts from it.

Planning Your Retirement (R0613C, 5/26), p. 13, The straight life calculationPayment options →

Survivor option

Survivor options are the actuarial equivalent of straight life, based on your and your beneficiary's ages.

Planning Your Retirement (R0613C, 5/26), pp. 16-17; ORS web page: Survivor Option Factor Lookup; MCL 38.1385(1)Payment options →

Transition date

The date (around Feb. 1, 2013, depending on your district's payroll) when your 2012 reform choice took effect.

MPSERS annual report FY2025, p. 29 ('the first day of the pay period that begins on or after February 1, 2013'); Your Retirement Plan (R0611C, May 2017; dated), p. 20Which plan am I in? →

Universal buy-in

Universal buy-in (up to 5 years at actuarial cost) could not be initiated after Sept. 29, 2017 at 5 p.m.; it cannot count toward the 10-year minimum or MIP 30-year retirement before 46.

MCL 38.1369f(1)-(3), (5)Buying service credit →

Plain English, not the official wordingThese definitions put ORS's booklets into everyday words. They aren't official definitions, and they aren't legal or financial advice. MPSERS and the Office of Retirement Services decide your benefits.

Estimate your pension →

Source: Planning Your Retirement (R0613C), Michigan Office of Retirement Services, Rev. 5/26, pp. 4, 9, 11, 13, 16-17, 19, 20-21, 24, 26, 33, 40-41, 47. Michigan law, 1980 PA 300: MCL 38.1384b; MCL 38.1361; MCL 38.1381d; MCL 38.1384; MCL 38.1385; MCL 38.1304; MCL 38.1381c; MCL 38.1391a; MCL 38.1391; MCL 38.1383; MCL 38.1369f. Your Retirement Plan (R0611C), May 2017 (dated). ORS web pages saved Nov. 12, 2026: Working After You Retire; Qualifying for Your Pension; Survivor Option Factor Lookup. ORS employer pages saved Nov. 12, 2026: Reporting Instruction Manual 6.03.03. MPSERS Annual Comprehensive Financial Report, FY ended Sept. 30, 2025, pp. 24-25, 25, 25-26, 26, 29. Retirement Readiness (R0613C), Dec. 2017 (dated), pp. 32-33. Choosing Your Retirement Plan (R2053C), Rev. 9/24, pp. 3-4. Last reviewed .