Wednesday, June 9, 2010

From The President's Desk: Changes To Public Schools Employees Retirement System

Significant changes have been made in the Michigan Public School Employees Retirement System, or MPSERS.

Beginning July 1, all MPSERS employees will begin to contribute three percent of their salary toward retiree healthcare. For those now eligible to retire, the annual benefit multiplier is increased from 1.5 to 1.6 percent for employees retiring on or before Aug. 31, who apply to the state by June 11. For long-term employees this can be a significant increase in their retirement income. A little-reported detail is that this increase in retirement income will be the financial responsibility of our University, an unfunded mandate from the state.

Employees eligible to retire should have received a letter from MPSERS.

Additional information about the legislation is at the state’s Web site for the Office of Retirement Services at http://www.michigan.gov/orsschools .

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