Parental Leave Service Credit Application - R0008c - State Of Michigan (Page 2 of 2) in pdf

Purchase Requirements

Wages. We will equate any part-time or partial year wages to a

Eligibility

full-time, full-year wage for your service credit cost

As long as you are an active member in a defined benefit plan

calculation. If you had no wages in the immediately preceding

and have at least 2 years of earned service with the Michigan

fiscal year with a Michigan public school, you must wait until

Public School Employees Retirement System, you may

July 1 (the start of the new fiscal year) before applying for

purchase up to 5 years of service credit for parental leave. You

service credit.

cannot initiate a purchase if you converted to the Defined

Contribution plan as part of the 2012 pension reform.

Years of Service. Your years of service used to calculate your

Parental leave is (1) the active participation or supervision in

purchase cost includes all service earned while in a defined

the day-to-day, ongoing care of your child by birth or

benefit plan, service already purchased, service that is

adoption; or (2) a pregnancy, whether brought to full term or

purchased but is pending vesting, and service credit that is

not, childbirth, and recuperation.

being purchased with tax deferred payment (TDP) agreements

If you are applying for time you separated from an out-of

as of July 1 of the year you are making the purchase.

system public educational agency, you must also submit a

Age. Use your age as of July 1 in the current fiscal year.

completed Out-of-System Public Education Service Credit

Calculate Estimated Cost. Refer to the Actuarial Cost Tables for

Application (R0149C).

specific percentage rates. To view the current Actuarial Cost

Note: Buying service can help you qualify for your pension earlier,

Tables, please visit To

but it won’t necessarily help you qualify for the plan’s health

estimate your cost for one year of credit, use the following

insurance premium subsidy earlier. For more information, go to our

formula.

website at

Highest Previous MI Public School Wage X % Rate

Conditions

To estimate your total cost, multiply the cost for one year by

 You must have either separated or reduced your hours from

the total years you are eligible to purchase. You may purchase

a Michigan public school or an out-of-system public

any fraction of a year increment.

educational agency.

 If you separated from State of Michigan service performed

under the Defined Benefit plan for parental leave purposes

Application Process

and later become employed with a participating Michigan

Complete this form and provide it to the educational

public school, you may purchase this service. If your State

agency that you separated from for parental purposes. If

of Michigan service was performed under the Defined

you separated from multiple employers, complete and

Contribution plan, you are not eligible for this service.

send an application to each employer.

 Your employer(s) must certify the date you separated or

When the educational agency returns this form to you,

reduced hours from a participating Michigan public school.

send your completed application with birth certificate(s)

 This service cannot be used to satisfy vesting requirements.

or adoption papers to our office.

 You may purchase this service before you are vested, but it

ORS will review your application and send you a Member

will not be credited to you until you reach vested status.

Billing Statement along with information on payment

Cost

options. This statement will list the amount of service you

The cost to purchase parental leave time is based on an

are eligible to purchase, the cost, and the due date.

actuarial formula. Your cost for each year purchased is a

Although it is called a billing statement, you’re not

percentage of your highest previous fiscal-year earnings (from

obligated to buy this credit.

July 1 through June 30). That percentage is in the Actuarial

To complete the purchase, follow the instructions on the

Cost Tables, and is based on your age, years of service, and

billing statement

your benefit structure.

R0008C (Rev. 3/2015)

Parental Leave Service Credit Application - R0008c - State Of Michigan Page 2

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