Teachers are eligible for various retirement benefits after retirement. Their work of educating the society is quite demanding. Therefore they should be able to enjoy their retirement lives well. For this reason, a Teacher's Retirement System has been placed in every US state for provision of various benefits. Michigan teacher retirement involves various programs and benefits which a retired teacher and his or her beneficiaries can avail.
The state of Michigan has the Michigan Public School Employees Retirement System which is a benefit plan for public employees approved under law. The plan is overseen by the Office of Retirement Services (ORS). Till 1974, employees and employers made contribution to the pension fund. In 1977, the system was changed and was funded through employer contribution known as Basic Plan.
In late 1986, the Member Investment Plan (MIP) was introduced. This contributory plan offers greater pension benefit options. Whether you are Basic or MIP depends when you started working for a participating school. If you were hired after January 1, 1990, then you are under Member Investment Plan (MIP) and if before then under the Basic Plan.
The Michigan Public School Employees Retirement System collects, compiles contribution, employee wage and information from 58 public school academies, 28 community colleges, 554 K-12 districts, 11 libraries, 7 universities and 57 intermediate school districts.
Through the Michigan teacher retirement plans, retirees and eligible dependents can get vision, dental and health benefits. Michigan teacher retirement ages depend on what plan you are in. If you are an MIP member, you can retire at 46 years with 30 years of service, at 55 years with 15 years of service (with stipulations), at age 60 with 10 years of service, or 60 years with 5 years of service (with stipulations). If you are a Basic Plan member, you can retire at 55 years of age with 30 years of service.
You will get your pension according to a formula which multiplies the final average salary times 1.5% times your service years. Normally your pension will arrive on the 25th day of every month. After retirement, you and your eligible dependants can enroll in the group insurance offerings. The insurance premium share is deducted from monthly pension payments.